Hospitality Industry Hit Hard By Covid-19
DULUTH, Minn. – A recent survey conducted by Hospitality Minnesota shows more than half of businesses in the hospitality industry across the state including hotels, restaurants, and bars will likely shut down permanently as a result of financial impacts of Covid-19.
With each passing day, it is getting more difficult for businesses to keep up with mounting obligations such as sales taxes, property taxes, and licensing fees.
Hospitality Minnesota is hoping the state and federal government will lend a hand as many hospitality businesses are having a hard time getting aid.
“The federal paycheck protection program is underserving our hospitality businesses, especially because of time need to bring back employees,” said President & CEO Liz Rammer. “On the state level, we are asking for an additional 120 million into the deed emergency loan program, which is really going to help fill in those revenue gaps.”
These impacts are affecting nearly 300,00 jobs in the state.
Hospitality Minnesota is forecasting it could take about 18-months to two years before many of these businesses could rebuild after the pandemic ends.