The American Society of Travel Advisors (ASTA) voiced its opposition to proposed legislation that would require agents to pay taxes on their services, the end result of which it said would “place small, women-owned travel businesses at a competitive disadvantage and could drive business out of the Commonwealth.”
“Targeting small businesses to pay for other projects when the Commonwealth has a surplus is unnecessary and misguided,” said ASTA President and CEO Zane Kerby.
Kerby formerly opposed HB 900 and HB 978 in a letter submitted to the House Finance Committee before Feb. 9 hearing.
“Ninety-five percent of travel agencies are small businesses, and eighty percent are women-owned,” he said. “These proposals would penalize Virginia-based advisors while making it easier for consumers to seek services from advisors in other states.”
In all, nearly 5,800 Virginia travel advisors generated $2.2 billion in sales in 2024, ASTA said, “supporting the state’s broader travel and tourism industry,” while in 2026, the state has a significant budget surplus, ASTA said.
“Travel is not a discretionary luxury,” said Jessica Klement, ASTA’s vice president of Advocacy.
“Travel advisors provide essential services that support business operations, workforce mobility and emergency travel needs,” she added. “Taxing these services threatens both small businesses and Virginia’s economic competitiveness.”
ASTA also urged lawmakers to reject similar proposals that would increase costs for small businesses without any cogent reason.
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