Hospitality groups propose $800M recovery plan for Maine's tourism industry
Courtesy / Newscenter screen image
Dana Connors, president of the Maine Chamber of Commerce, speaks at a news conference proposing an $800 million recovery plan for the tourism industry.
A group of Maine hospitality and retail organizations is proposing an $800 million plan to help the state's tourist industry recover from COVID-19 shutdowns.
Saying the shutdowns, including a quarantine of out-of-state visitors, have devastated the state's short summer tourist season, the Maine Hospitality & Tourism Alliance is asking Gov. Janet Mills to earmark the funds to rejuvenate small businesses in that sector. The money would come from the $1.25 billion in CARES Act funding allotted to Maine.
The group outlined the Maine Hospitality, Tourism & Retail Recovery Plan at a news conference, held in the parking lot of DiMillo's, on the Portland Pier, late Friday morning.
The multi-phased relief proposal allots Emergency Action Grants to small businesses across the state that have been affected so they can keep their doors open and pay basic operating costs including rent, mortgage and payroll, the group said in a news release accompanying the announcement. Group members speaking Friday said they expect 10,000 businesses to make use of the program.
Gov. Janet Mills would have to agree to help allot the money to the program, and the state would administer the plan.
The plan was created by HospitalityMaine, Maine Tourism Association and the Retail Association of Maine, and provides employee support for child care and transportation, as well as increasing funding for tourism promotion, workforce development and disadvantaged business startups and offers technical assistance for hotels and restaurants to rebuild and retool.
“Due to the devastation the state’s restrictions are causing, this emergency funding is crucial for business survival,” said Steve Hewins, CEO of HospitalityMaine. "Maine's hospitality industry is stepping up and acting quickly to help our inns and restaurants in this emergency so they can thrive in the future."
The state has lost more than 105,000 jobs because of COVID-19 shutdowns, according to the Maine Department of Labor, including 12,000 in retail and 42,600 in hospitality.
"Sadly, more than half of the jobs lost in Maine have come from our industries," said Curtis Picard, CEO of the Retail Association of Maine. "We need bold action to make sure these industries are around in 2021."
"When you look at the statistics, it's astounding," said Dana Connors, president of the Maine Chamber of Commerce. "When you look at all that's impacted that's before you today, you're going to find that's conservative."
He said two-thirds of the value is the summer season, "and that has already begun."
The plan, he said, takes care of "everything that needs to be done at this time," but the group will continue to work on opening state to tourism.
While he commended Mills for keeping public health front and foremost, "Public health and economic health are side by side partners, we need them both," he said. "We need a state that depends on safety, but also depends on economic success."
The plan would earmark $400 million for businesses with 50 current full-time employees or less. The businesses struggled with accessing federal programs such as the Paycheck Protection Program and the Economic Injury Disaster Loan program. Hospitality, retail, and tourism businesses with more than 50 full-time employees would divvy up $300 million, and $10 million in grants would be reserved for 501(c)(6) organizations that service the hospitality, tourism, and retail sectors.
Hewins said the plan is needed immediately and would start as soon as possible
"Tourism touches all aspects of our communities, from schools, real estate, support businesses like hardware stores and car dealerships, and most importantly our quality of life. Restarting Maine’s economy begins with restarting travel," said Tony Cameron, CEO of the Maine Tourism Association. "This plan will help businesses survive this year so they can recover next year."
The industry, which generates $9 billion for the state, most of it during the summer, has been increasingly frustrated with the state's reopening plan, particularly the 14-day mandatory in-state quarantine for travelers from out of state before they can stay at a lodging establishment. While the quarantine was tweaked this week, opening the state up to those from New Hampshire and Vermont with no restrictions, and offering a COVID-19 testing option, members of the hospitality industry said it was too little, too late.
The Maine Hospitality & Tourism Alliance is made up of HospitalityMaine, Maine Tourism Association, Retail Association of Maine, Maine Campground Owners Association and Ski Maine.
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