Chaos Begins

The world, particularly America, has been in chaos for 10 days.  Programs have been trashed, funds threatened to be withheld, and an airplane crash in Washington, DC, the first major one in the US in more than 20 years, shocked the country.  45 new Executive Orders have been signed, and 159 previous Executive Orders have been rescinded.  The Office of Management and Budget issued an order to stop spending Federal funds for all grants and loans, but a judge blocked it, and later, the memo was rescinded.  Hearings regarding the matter will take place on Monday.

Immigrants and Tariffs

The first immigration raid in New Jersey took place in a restaurant in New Jersey, and it yielded a US citizen and a military veteran being arrested along with others.  About 1,200 migrants in all have been arrested so far.  Tariffs were set to go into effect against Canada, Mexico and China Saturday morning as this is being written, which will inevitably raise prices.

Here’s The Glimmer of Hope

On the bright side, the response and outcry on behalf of those who depend on Federal funds and grants to eat, heat their homes, and receive medical care, did cause the order to be rescinded. The order has just now been blocked by a second Federal judge.

Hospitality Means Everyone

In addition, the leaders of large hotel companies publicly pledged support for diversity.

Hilton CEO Chris Nassetta stated that hospitality businesses “are, by definition, very diverse businesses. Our objective has been to make sure that teams that we’re building, corporately or in the properties, are able to best deliver what our customers want. So, it is ultimately a business imperative for us to have diversity in our teams.” USTOA also re-affirmed its support of diversity.  They have no choice.  The hospitality industry is still down 1 million workers after Covid, and pushing out any group of staff will only make things worse.

Plan for Sustainability

In view of all this commotion, what is the most effective response for the tourism industry?  Unfortunately, it appears that it is prudent to begin planning for sustainability if that process has not already started, but it is still to be seen what the specific situations to respond to will be. Only Congress can appropriate funds, and the Executive Branch cannot withhold them.  There will be lawsuits upon lawsuits regarding diversity policies and litigation regarding policy changes.  All of the changes and orders will not survive in one fell swoop.

People Are Going to Travel

As we saw during COVID-19, Americans continue to travel because it has become a wellness approach. The effect of tariffs on budgets will not be known immediately, and even within that, some people will continue to prioritize getting away.

We will continue to monitor the situation daily and weekly, and once specifics have been decided, we will make everyone aware of them immediately. Stay tuned. This is going to be one of the most challenging times to plan.   Maree Forbes Gaughan PhD