immigration policy in the hotel industry

How Can Immigration Policies Reshape the Hospitality Industry? 

Both fully legal and undocumented immigrants play a major role in keeping hotels, restaurants, and other businesses in the hospitality industry running efficiently, which means that understanding how current laws impact them and how your business can best meet their needs is a must. Here are some of the most important things to know about how current immigration policies are impacting the hospitality industry and how your hotel can adapt to better meet the needs of your immigrant team members. 

Impacts of Current Immigration Policies on the Hospitality Industry 

Understanding how both immigrants and immigration policies impact your hotel can help you identify and adapt to potential concerns. 

Visa Limitations

Immigrants seeking legal employment in the United States have various options, although the specifics of these programs often change. For instance, the H-2B visa, instrumental in allowing immigrants to fill seasonal roles in the hospitality industry and other sectors, is currently limited to 66,000 participants annually. This cap restricts access significantly compared to the program’s peak year when it supported nearly double that number. Such fluctuations in policy can impact the ability of industries to meet their labor needs effectively.

Reduced International Tourism 

Residents of countries heavily impacted by stringent immigration laws encounter additional hurdles when attempting to visit the United States as tourists. These individuals face heightened discrimination and must fulfill more demanding visa requirements such as proof of ongoing travel, income, and security—criteria that are not uniformly applied to all travelers.

This discriminatory practice often forces potential tourists to alter or cancel their travel plans, adversely affecting their ability to visit. Such disruptions can significantly decrease the revenue for hotels and other businesses reliant on tourism, impacting the overall economic contribution from international visitors.

immigration policy in the hotel industry

Staffing Issues 

Likewise, placing heavy restrictions on the number of immigrants that are able to legally enter the United States each year and the types of employment they qualify for can significantly reduce the pool of potential team members that hotel and restaurant managers have to choose from. These businesses are then often forced to limit the ways in which they are able to serve their guests. Hotels that struggle to fill key positions, such as housekeeping and front desk roles, often find it difficult to operate optimally. This staffing shortage can hinder their ability to provide the best possible experience for their guests.

More Job Availability

Many positions in the hospitality industry remain vacant because hotels and other businesses are unable to fill them. While this is challenging for hotels, it creates an abundance of opportunities for the new immigrants that can come to the United States to choose from. Less recent immigrants may change jobs more frequently than they otherwise might when searching for the best possible fit. This means that hotels known for providing excellent workplaces are most likely to continue to thrive

Typical Roles of Immigrants in the Hospitality Industry

Immigrants fill a large enough percentage of positions in the hospitality industry that many hotels, restaurants, and similar businesses would severely struggle or fail altogether if no immigrant workers were available. Some of the most significant roles filled by immigrants include:  

  • Nearly one third of all hotel employees 
  • Approximately half of housekeeping staff in certain regions  
  • Approximately 45 percent of professional chefs  
  • As high as 80 percent of all restaurant workers for specific categories of restaurants in certain regions  

Varying Impacts of Immigration Policies on Different Regions

Your hotel’s geographic location can also impact the specific ways in which immigration policies impact your team members and revenue. Many large cities along the southern border and east and west coasts are home to above-average immigrant populations, which means that hotels in these areas tend to be more heavily impacted than hotels in the middle of the country.  

Potential Economic Consequences of Restrictive Immigration Policies 

Immigration policies can negatively impact the economy at the local, state, and national level in a number of ways. 

Reduced Tourist Revenue

immigration policy in the hotel industry

Restrictive immigration policies can significantly decrease guest numbers, leading to substantial revenue losses for hotels. This downturn often stems from multiple factors, including difficulties faced by visitors from countries heavily affected by stringent immigration laws, diminished hotel reputation, and a compromised guest experience due to staffing shortages. Additionally, hotels located in regions perceived as less welcoming to immigrants may also see reduced visitor numbers. To counteract these challenges, hotels might lower their prices to attract more guests, but this strategy can further erode overall revenue.

Hotel Closures 

Hotels, restaurants, and other businesses that are the most heavily impacted by immigration policies may be forced to close if they do not have the revenue or staff they need to operate reasonably effectively. In addition to the harm that these closures cause for team members the hotel does have, other local businesses may struggle if their city is no longer able to benefit from as many tourists.  

Reduced GDP

States that are most heavily impacted by strict immigration policies have the potential to see their annual GDP drop by several billion dollars per year, which can reduce their overall economic success and future growth potential.  

How the Hospitality Industry Can Respond and Adapt to Immigration Policy Changes 

The hospitality industry is deeply influenced by changes in immigration policy, but hotels and related businesses can mitigate potential negative impacts by proactively understanding and adapting to these changes. This involves continuously monitoring immigration policies, adjusting hiring practices to ensure legal compliance while assembling a strong team, and prioritizing employee retention to maintain a desirable workplace. Additionally, forging connections with local immigration lawyers and experts can provide crucial support in addressing any concerns that arise with current staff.

At NewGen Advisory, we are committed to equipping hotel owners and managers with the necessary tools to deliver optimal experiences for both guests and team members. By understanding the nuances of shifting immigration policies and other prevalent issues, hotels can effectively retain staff and adapt to the legal landscape. Contact us today to discover more about how we can assist your hotel in navigating these challenges and thriving in a competitive market.

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