SPRINGFIELD, Ill. (WAND) — State tourism leaders say economic uncertainty caused by political tensions and tariff-related issues are threatening hotels and restaurants. Experts told senators Friday that the hospitality industry is getting hit hard, from large metro areas like Chicago and Springfield to small rural communities.

Hotel

The Illinois Hotel & Lodging Association said the state saw a year over year decline in occupancy during the month of January and very small increases during February and March.

The Illinois Hotel & Lodging Association said the state saw a year over year decline in occupancy during the month of January and very small increases during February and March. 

A revised forecast from Tourism Economics shows a 9.4% decline in international arrivals this year. Yet, the National Travel and Tourism Office has also reported an 11.6% year over year drop in overseas visitors as of March.

"The hotel industry supports nearly 300,000 jobs in Illinois, including nearly 50,000 directly employed workers in our hotels," said Keenan Irish, Vice President of Government Relations and Member Engagement for the Illinois Hotel & Lodging Association. "Disruptions in travel spending whether from reduced federal government travel, a recession, or fewer international users would trigger job losses across hotels, restaurants, retail, transportation, and our local vendors."

Meanwhile, the Illinois Restaurant Association said tariffs have hiked food and packaging costs, increasing costs on consumers who are already pulling back on spending. President and CEO Sam Toia told senators jobs at restaurants are dwindling.

"Restaurants need a break they can't get from residents alone," Toia said. "Putting more diners in seats and more guests in beds presents a rich opportunity to revitalize the restaurant industry at a time when it needs it more than ever."

Central Illinois hospitality leaders say survival of small businesses depends heavily on tourism.

Karen Conn is the owner of Obed & Isaac's, Wm. Van's Cafe, and several other small businesses. She stressed that Illinois needs to invest more funding in tourism marketing campaigns like the Middle of Everything video series launched in 2022.

"Places that have natural beauty, outdoor recreation, authentic main street businesses - they all deserve the spotlight," Conn said. "A targeted marketing campaign with increased funds can attract the visitors to these less traveled corners of our state." 

State lawmakers may pass several different bills to lift up the hospitality industry during the final weeks of session. 

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