4 million people who work in the US hotel industry could lose their jobs in the coming weeks due to the coronavirus

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4 million people who work in the US hotel industry could lose their jobs in the coming weeks due to the coronavirus
Coronavirus hotel room cleaning

ARMEND NIMANI/AFP via Getty Images

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A worker wearing a protective suit disinfects a hotel room as part of measures to prevent the spread of the coronavirus, on March 16, 2020 in Pristina, Kosovo.

  • Hotels across the US are experiencing unprecedented booking cancellations due to the coronavirus, with some markets like Seattle and Boston reporting occupancy declines as steep as 20%.
  • Four million US hotel employee positions could be eliminated in the coming weeks, according to the American Hotel & Lodging Association.
  • If US hotel occupancy declines 30%, the GDP could take a $300 billion hit, an Oxford Economics study found.
  • Leading hotel and tourism CEOs have asked the White House for a $150 billion bailout to keep the travel industry afloat and prevent a potential financial recession.
  • Visit Business Insider's homepage for more stories.

Nearly four million US hotel jobs could be eliminated in the coming weeks, according to the American Hotel & Lodging Association (AHLA). That's close to 50% of all hotel jobs in the country.

Due to the coronavirus concerns and regulations, hotels across the US are seeing unprecedented cancellations and closures. "In certain affected markets, including Seattle, San Francisco, Austin and Boston, hotel occupancy rates are already down below 20 percent," the AHLA said in a release provided to Business Insider.

The loss of 4 million jobs is based on a forecasted 30% decline in hotel occupancy rates and could result in a $300 billion hit to the GDP, a study by Oxford Economics produced in partnership with the AHLA concluded.

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On March 17, CEOs of leading hotels and tourism organizations met at the White House to ask the government for a $150 billion bailout.

"The impact to our industry is already more severe than anything we've seen before, including September 11th and the great recession of 2008 combined," American Hotel & Lodging Association President and CEO Chip Rogers said in the release.

Without the aid of the government, hospitality industry leaders worry that the loss of hotel jobs could kickstart a financial recession.

"This unprecedented public health crisis has quickly become a catastrophic economic crisis as well," Roger Dow, the president and CEO of the US Travel Association, said in the same release. "The losses for the travel industry alone are projected to double the unemployment rate over the next two months and plunge the country into recession. Small businesses, which make up 83% of travel businesses, need relief right now if they're going to be able to keep paying their employees."

On Tuesday, the Wall Street Journal reported that Marriott, the largest hotel company in the world, has already begun furloughing tens of thousands of employees amid global hotel closings.

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