Washington, D.C. – May 27, 2015 – The American Hotel & Lodging Association (AH&LA), the sole national association representing all segments of the 1.8 million-employee lodging industry, today issued a statement following the veto by Maryland Governor Larry Hogan of legislation that would have closed a loophole for online travel companies and ensured they pay their fair share of taxes on rooms booked online.

“The hotel industry is disappointed that Governor Hogan gave up on fair tax collection for online travel companies who have exploited a tax loophole, depriving Maryland citizens of much-needed additional revenue. This action means online travel companies will have a competitive advantage over hotel companies, including those who operate in Maryland," said Katherine Lugar, president and CEO of the American Hotel and Lodging Association.

“Unlike the online travel companies, hotels directly support tens of thousands of jobs in Maryland and contribute over $1 billion in tax revenue that supports communities in this state. Legislative action to close this tax loophole is needed now to prevent further loss of revenue to the state and its local governments. We hope the legislature will take steps to override this ill-informed decision.”

The Maryland State Senate passed SB 190 on March 24. In 2014, Maryland hotels, motels, resorts, and lodges generated $1.2 billion in tax revenue for local and state governments. More importantly, the lodging industry supports approximately 24,000 jobs and is responsible for $787 million in annual wages.