Hotel and Travel Industries Advocate for U.S. Film Incentive to Boost Tourism

Major associations representing the hotel and travel industries have publicly backed a proposed 20% federal tax incentive for film and television productions in the United States. These groups contend that fostering domestic moviemaking acts as a significant draw for international tourism. By encouraging more productions to be filmed within the U.S., the initiative is expected to generate substantial economic activity across various sectors, from hospitality to local small businesses, and to promote American destinations globally.

The American Hotel & Lodging Association (AHLA) and the U.S. Travel Association have formally allied with existing film industry advocates to champion this legislative effort. This broad coalition encompasses a wide array of businesses, including airlines, online ticketing platforms, hotel chains, and major resort operators such as Disney and Universal theme parks. Their collective support underscores a shared belief in the far-reaching economic benefits that a robust domestic film and TV production landscape can deliver.

Geoff Freeman, President and CEO of the U.S. Travel Association, emphasized the extensive positive impact of every film and TV project made in America. He noted that productions stimulate local economies by utilizing hotel accommodations, patronizing restaurants, and supporting small enterprises during filming. Furthermore, these productions inspire audiences worldwide to visit the featured locations, creating sustained tourism interest. Freeman stated that a federal incentive would redirect significant economic activity to communities across all fifty states, providing every destination with a potent new method for global promotion.

Last month, a bipartisan group of legislators introduced the Motion Picture, Television, and Entertainment Revitalization Act. This proposed bill aims to establish a 20% tax credit for labor costs incurred by film and TV productions in the U.S. Additionally, it offers a 5% bonus for independent films and productions filmed in rural areas or designated disaster zones, intending to further incentivize diverse filmmaking and regional economic development.

The legislation has garnered significant support in both chambers of Congress, with 52 sponsors in the House of Representatives and 10 in the Senate. House sponsors are predominantly from states with established filming industries, including 15 from California, six from Pennsylvania, four from New York, and three each from New Jersey, Illinois, and Georgia. These numbers reflect a recognition of the existing economic contributions of the entertainment sector in these regions.

Currently, the House bill is under review by the Ways and Means Committee, which oversees tax legislation, while its Senate counterpart is being examined by the Finance Committee. Supporters of the bill are actively working to achieve its passage during the upcoming lame-duck session of Congress, which is scheduled to commence shortly after the midterm elections, highlighting the urgency and perceived importance of this economic stimulus package.

Ralph Posner, spokesperson for the American Hotel & Lodging Association, reiterated that the economic advantages of this legislative measure extend far beyond the direct confines of the film and television industry. He pointed out that domestic productions bring cast members, crew, and a wide range of suppliers into local communities throughout the U.S., significantly increasing hotel occupancy and bolstering local businesses. Posner concluded that by encouraging more domestic production, the legislation would effectively drive economic growth, provide crucial support to local economies, and effectively showcase American destinations to a global audience.

The broad coalition advocating for this bill also includes influential industry organizations such as the Motion Picture Association, which represents major film studios, and the Independent Film and Television Alliance. Furthermore, all major Hollywood unions have thrown their support behind the initiative, demonstrating widespread consensus across the entire entertainment ecosystem regarding the potential benefits of this federal tax incentive.