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Gavel slams: Airbnb not eligible for privileged tax treatment

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A report released on behalf of the American Hotel and Lodging Association (AHLA) calls on state and local government leaders to reject Airbnb’s future pursuit of voluntary collection agreements (VCAs) and look to the Wayfair decision as a pathway to cancel current VCA agreements and bring Airbnb up to code with current industry tax standards and regulations.

AHLA released a new report on National Tax Day, conducted by former Director of the Montana Revenue Department Dan Bucks, which clearly demonstrates why the Supreme Court’s Wayfair vs. South Dakota decision last year eliminates the need for state and localities to enter into “voluntary collection agreements” (VCAs) with Airbnb and provides the legal framework and incentive to tax Airbnb like every other U.S. online business now.

“Airbnb no longer qualifies—if it ever did—for privileged treatment by tax agencies as a ‘voluntary collector,’” states Bucks in the report. “This treatment gives Airbnb an unfair advantage in the marketplace by creating a tax and regulatory haven for Airbnb lodging operators. Post-Wayfair, Airbnb’s “voluntary agreements” are now a relic of a past legal premise that no longer exists.”

Bucks urges government leaders to begin the process of terminating existing “voluntary” tax agreements with Airbnb in coordination with state adoption of “general marketplace provider” legislation. Bucks went on to say that disparities between the tax treatment of Airbnb and other online businesses pose a legal risk to states and localities.

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“Airbnb has been making back-room deals and strong-arming state and local jurisdictions into ‘voluntary’ tax deals with no transparency, oversight or auditing capability for years,” stated Chip Rogers, President and CEO at AHLA. “Airbnb, and other short term rental platforms need to abide by the same rules as all other law-abiding, tax-paying businesses in the industry.”

AHLA urges state and local government leaders to terminate Airbnb’s voluntary tax deals and instead institute a tax policy that will collect taxes from Airbnb and its operators to ensure an even playing field and transparency for taxpayers. In San Francisco, home of Airbnb’s corporate headquarters, the company agreed to pay back taxes and collect city taxes from its hosts.  AHLA urges other states and localities to follow suit.

“Airbnb’s secret tax agreements are hurting communities across America by shortchanging their schools, infrastructure, and other public services” stated Rogers. “Airbnb’s special treatment needs to end.”

The American Hotel and Lodging Association (AHLA) is the singular voice representing every segment of the hotel industry including major chains, independent hotels, management companies, REIT’s, bed and breakfasts, industry partners and more.

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U.S. Travel honors its 2019 Travel Champions

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The U.S. Travel Association on Wednesday announced the recipients of the sixth annual Distinguished Travel Champion Award: Sen. Catherine Cortez Masto (D-NV), Chairman Peter DeFazio (D-OR), Sen. Rob Portman (D-OH), Rep. Tom Rice (R-SC) and Acting Under Secretary of State for Economic Growth, Energy, and the Environment Manisha Singh
Each is being honored for his or her exceptional leadership in advancing and protecting policies that strengthen travel to and within the United States.

U.S. Travel will present the awards today at U.S. Travel’s Destination Capitol Hill—the travel and tourism industry’s premier legislative fly-in event dedicated to educating policymakers about the power of travel and showcasing the industry as one of America’s most vital economic sectors.

“We always say that travel is neither a red or blue issue,” said U.S. Travel President and CEO Roger Dow. “This year’s Distinguished Travel Champions have a deep understanding of travel’s contributions to the American economy, and have consistently reached across the aisle to advance sensible policies that grow travel, enhance security and trade, and keep our economy moving.

“Our winners’ dedication to securing Brand USA’s long-term reauthorization, overhauling America’s infrastructure systems, preserving our national parks, rebranding and expanding the Visa Waiver Program, and upholding our nation’s Open Skies aviation agreements strengthen travel’s role as job creator and economic engine.”

Sen. Catherine Cortez Masto (D-NV)

Since entering Congress just two years ago, Cortez Masto has quickly become an advocate for the travel industry and a top congressional champion of Brand USA. Her tireless work and dedication to ensuring the reauthorization of Brand USA, a program crucial to the United States’ travel promotion and planning, is invaluable.

Said Cortez Masto: “I’m honored to receive the 2019 Distinguished Travel Champion Award. I say it all the time, Nevada is the gold standard for tourism and hospitality. We draw tourists to the Las Vegas Valley and from the pristine waters of Lake Tahoe to the scenic peaks of the Ruby Mountains. I’m so proud to support our $60 billion tourism economy and the jobs it supports in Nevada. As Senator, I’ll continue to fight for policies like Brand USA and those to increase efficient travel that strengthen our tourism industry for years to come.”

Chairman Peter DeFazio (D-OR)

DeFazio’s commitment to overhauling infrastructure systems within our country is crucial to increasing connectivity and facilitating travel growth across America. He has also undertaken laudable efforts to end the practice of diverting “9/11” security fees to other programs unrelated to air travel security.

DeFazio’s dedication to his home state’s $11.8 billion travel and tourism industry is commendable, as is his work to ensure local travel leaders have a voice in the state’s transportation planning.

Said DeFazio: “I am proud to be this year’s recipient of the U.S. Travel Association’s Distinguished Travel Champion Award. Travel and tourism promote economic prosperity, create jobs, and strengthen our national security through improved international relations. As Chairman of the Transportation and Infrastructure Committee, I am working hard to modernize our nation’s airports, increase federal investment in infrastructure, and ensure we remain on the cutting edge of innovation as it relates to transportation. All of these improvements will help encourage increased travel and tourism.”

Sen. Rob Portman (R-OH):

Portman’s leadership on national parks issues, as well as many other important fiscal issues facing the country, is vital to the preservation of our public lands and the continued growth of the American economy.

Portman led efforts to pass the Restore Our Parks Act and to establish a dedicated source of funding for the $12 billion deferred maintenance backlog that will help ensure the viability of our parks for generations to come. Our national parks are some of the biggest draws for domestic and international travelers, and countless “gateway” communities across the country rely on well-maintained parks and robust visitation.

“It is an honor to receive the U.S. Travel Association’s 2019 Distinguished Travel Champion Award,” said Portman. “If we want our national parks to be here for generations of travelers to come we must address the nearly $12 billion backlog in long-delayed maintenance projects at the National Park Service. I’ve seen this maintenance backlog firsthand at national park sites in Ohio, and it underscores why we must pass my bipartisan Restore Our Parks Act to ensure that that the National Park Service has the resources to continue preserving American treasures. I look forward to working to get this legislation across the finish line.”

Rep. Tom Rice (R-SC):

Rice’s co-sponsorship of the JOLT Act and commitment to strengthening and expanding the Visa Waiver Program is crucial to enhancing U.S. security and economic competitiveness.

Rice’s efforts to support towns and cities in his district devastated by Hurricane Florence, including tourism-dependent communities such as Myrtle Beach, have been critical.

“I am honored to receive the U.S. Travel Association’s 2019 Distinguished Travel Champion Award,” said Rice. “I will continue to advocate for policies that will support American jobs, strengthen national security, and grow South Carolina’s tourism economy.”

Acting Under Secretary of State for Economic Growth, Energy, and the Environment Manisha Singh:

Singh has undertaken crucial efforts to uphold our country’s vital Open Skies aviation agreements, increase financial transparency and protect the interests of all U.S. aviation stakeholders. She has worked hard to elevate the travel industry as an essential export and economic driver.

Said Singh: “I’m honored to receive U.S. Travel’s 2019 Distinguished Travel Champion Award. The U.S. State Department is pleased to support the U.S. travel industry and American jobs by negotiating and helping to enforce Open Skies aviation agreements that bring flights, travel, and business to the United States from around the world.”

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U.S. Travel applauds introduction of JOLT Act

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Have you heard of the JOLT Act? JOLT stands for Jobs Originated through Launching Travel.

The Executive Vice President of Public Affairs and Policy for the U.S. Travel Association, Tori Barnes  issued a statement on the introduction of the Jobs Originated through Launching Travel (JOLT) Act of 2019:

“International inbound travel is central to America’s job growth: in 2018, international travel spending directly supported 1.2 million American jobs and $33.4 billion in wages. The JOLT Act will do just as its name implies—provide a ‘jolt’ to the American economy and workforce with critical enhancements to inbound travel, including measures to increase both the security and efficiency of the U.S. visa process.

“The Visa Waiver Program—which the bill would re-designate as the Secure Travel Partnership—is one of the most important tools for increasing secure travel to the United States. Renaming the program will more precisely reflect its value as a national security instrument, and other provisions in the legislation will further strengthen the program while facilitating the arrival of qualified international visitors who bolster America’s economy.

“U.S. Travel applauds Representatives Quigley and Rice for recognizing the role that secure, robust international inbound visitation plays in America’s economic and jobs growth, and we are eager to work with Congress to advance this important bill.”

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WTTC launches global taskforce on human trafficking

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The World Travel & Tourism Council (WTTC) has today announced the formation of a global taskforce to help prevent and combat human trafficking – an illicit activity that affects 30 million victims worldwide and relies on travel networks to operate.

The taskforce comprises WTTC members and sector associations to become the first global industry-wide initiative to assert zero tolerance and share best practice.

As an industry, human trafficking is worth $150 billion annually and contributes heavily to modern slavery in which 40 million people worldwide are entrapped. One-quarter of trafficking victims worldwide are children (or 5.5 million). Meanwhile, 19% of victims are trafficked for sexual purposes, which makes up 66% of the illicit income generated.

Human trafficking is present virtually everywhere, yet not all criminalize it in all its forms.

The WTTC taskforce has thus been established for the purposes of:

  1. PREVENTION: to increase industry and consumer awareness of human trafficking. It is proven the more we know the more can be prevented.
  2. PROTECTION: to train employees and travelers on how to identify and report suspected cases.
  3. ACTION: to encourage governments to enact legislation which recognizes human trafficking as a crime throughout the entire chain and develop resources and support needs such as national hotlines.
  4. SUPPORT: to provide assistance, employability training, and employment opportunities to survivors.

The founding members of the taskforce are Airbnb, Amex GBT, The Bicester Village Shopping Collection, Ctrip.com International, CWT, Emirates, Expedia Group, Hilton, JTB Corp., Las Vegas Convention and Visitor Authority, Marriott International, Silversea, Thomas Cook, and TUI.

On the formation of the taskforce, Gloria Guevara, President & CEO of WTTC, commented: “Human trafficking is a devastating widespread and critical issue that unfortunately relies on Travel & Tourism networks to operate. As a sector, we must do everything in our power to help eradicate the problem so that people may move freely and safely across the globe, but never coerced.

“I am proud to today launch this vital taskforce comprised of the world’s most powerful travel leaders from across hotels, retails, airlines, cruise, technology, finance, and destination management, and are wholly committed to preventing trafficking, protecting victims, supporting survivors, and engaging with governments so that this pandemic ends once and for all.”

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Brunei Travel: Ready to be stoned to death? How will WTTC and UNWTO respond?

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Brunei is becoming a deadly place to visit starting April 3, specially if you are member of the LGBT Community.

Next week the World Travel and Tourism Council (WTTC) will have their annual summit in Seville, Spain. Tourism leaders from around the globe will meet and listen to keynote speaker U.S. President Obama. Will President Obama, UNWTO Secretary-General Zurab Pololikashvili, or WTTC CEO Gloria Guevara say something on what is developing in Brunei?

No country in the world so far issued travel warnings against Brunei. U.S. authorities have a level 2 travel advisories against Germany or the Bahamas but find travel for Americans perfectly safe when a new law threatens citizens and visitors, including children to be subject to death by stoning for same-sex sexual acts and amputation for robbery. Such a law will come into effect in Brunei Darussalam on April 3.

Brunei is a tiny nation on the island of Borneo, in 2 distinct sections surrounded by Malaysia and the South China Sea. It’s known for its beaches and biodiverse rainforest, much of it protected within reserves. The capital, Bandar Seri Begawan, is home to the opulent Jame’Asr Hassanil Bolkiah mosque and its 29 golden domes. The capital’s massive Istana Nurul Iman palace is the residence of Brunei’s ruling sultan

“Pending provisions in Brunei’s Penal Code would allow stoning and amputation as punishments – including for children, to name only their most heinous aspects,” said Rachel Chhoa-Howard, Brunei Researcher at Amnesty International.

“Brunei must immediately halt its plans to implement these vicious punishments and revise its Penal Code in compliance with its human rights obligations. The international community must urgently condemn Brunei’s move to put these cruel penalties into practice.”

These punishments are provided for in newly-implemented sections of the Brunei Darussalam Syariah Penal Code that are due to come into force on 3 April 2019, according to a discreet notice on the Attorney General’s website.

“To legalize such cruel and inhuman penalties is appalling of itself. Some of the potential ‘offences’ should not even be deemed crimes at all, including consensual sex between adults of the same gender,” said Rachel Chhoa-Howard. “These abusive provisions received widespread condemnation when plans were first discussed five years ago.”

Amnesty expressed grave concerns over the Penal Code when the code’s first phase was implemented in April 2014.

“Brunei’s Penal Code is a deeply flawed piece of legislation containing a range of provisions that violate human rights,” said Rachel Chhoa-Howard. “As well as imposing cruel, inhuman and degrading punishments, it blatantly restricts the rights to freedom of expression, religion, and belief, and codifies discrimination against women and girls.”

Stoning and a hunt to kill members of the LGBT community is not an isolated problem in Brunei alone. Brunei is joining countries like Iraq, Iran, Saudi Arabia or Tanzania.

Background

Brunei Darussalam has signed but not yet ratified the Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment, and has rejected all recommendations to this effect in its human rights review at the UN in 2014.

Under international human rights law, corporal punishment in all its forms, such as stoning, amputation or whipping, constitutes torture or other cruel, inhuman or degrading punishment, which is prohibited in all circumstances.

Acts of torture and other ill-treatment are absolutely proscribed in the main international human rights instruments, most of which Brunei has not signed or ratified. In addition, this prohibition is also recognized as a peremptory rule of customary international law, meaning that every state is bound by it even if they are not a party to a relevant human rights treaty. All acts of torture constitute crimes under international law.

While Brunei retains the death penalty in law, it is abolitionist in practice. One new death sentence was imposed in 2017, for a drug-related offense.

Just a few years ago the Sultan of Brunei told UNWTO Secretary-General and WTTC CEO: “We will do our best to support tourism. Tourism is of strategic importance for Brunei and based on two principal resources: the country’s pristine rainforest in the heart of Borneo, and its spiritual and cultural heritage. Environmental protection and conservation must, therefore, lie at the heart of any tourism development, the Sultan had stressed.

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