by Leroy Lail
t seems that every sector of our nation has been hurt by the coronavirus pandemic. From sports to entertainment to restaurants, business is hurting. But I believe the industry that has seen the most dramatic drop is tourism and hospitality.
Unfortunately, the nature of a public health crisis like COVID-19 means that hospitality will have the most difficulty coming back to full strength. People aren’t traveling as much, are refraining from summer vacations and changing wedding plans — all causing a massive decrease in hotel reservations.
One thing that could have an immense, positive impact is fixing the health-coverage problem many North Carolinians are facing. I’m not sure this issue is getting the attention it deserves, and I’m concerned about what could happen if our leaders in Washington don’t take swift action.
The sharp decline in travel causes ripple effects throughout our economy. Every week, we hear of more and more layoffs or furloughs. With hotels and bed-and-breakfasts not filled to capacity, many have had to make the difficult decision to lay off employees. This puts everyone in a bad position, but especially the employees who lose employer-sponsored health coverage. And in the middle of a public health crisis, no less.
The problem is that too many people who have lost jobs — over 1 million across the Tar Heel State alone — lost their employer-provided health coverage at the same time. This has a direct impact on the local workforce. Many people have been unemployed and avoiding health care since March. As more months like this pass, the workforce will get sicker and the employees available to work in the hospitality industry will be less physically able to take on these jobs.
What’s more, a lack of health coverage affects families’ financial decisions. If you’re nervous about how you’ll pay for a doctor’s appointment if you get sick, it’s more difficult to go back to life as usual. Despite the hospitality industry’s efforts to offer safe, socially distant service, often in open-air environments, I can understand if some people without health coverage remain wary and stay home.
I also empathize with families who have day-to-day concerns, like paying for insulin. Such essentials are difficult to afford without health coverage, and they take money out of families’ pockets that could otherwise be spent in the local economy now, when independent businesses need it most.
Resurgence in the hospitality industry — indeed, in the economy as a whole — is largely a matter of consumer confidence. Congress can help reassure the American people by helping them maintain their employer-provided health plan, through work or while unemployed, or to obtain different coverage that meets their needs.
It is my belief that Washington has the power to take control and do some good for Americans. I encourage Sen. Thom Tillis to bring this issue to the forefront of discussions in the Senate and find solutions with Senate Leader Mitch McConnell in time to include health coverage assistance in the next COVID-19 relief bill.
The key is acting fast. After a good jobs report in May, another timely boost from Congress would build upward momentum and return more economic benefit than it costs.
Let’s get this done so that we can have some peace of mind in the midst of one of the worst health crises our country has ever seen.
Leroy Lail is chairman of Hickory Furniture Mart and a past chairman of the Intercontinental Hotel Owners Association.