Regulatory and Legal Affairs

🛴 Boston City Council passed a bill requiring third-party delivery companies to acquire city permits and additional insurance for drivers, following Mayor Michelle Wu's February filing due to residents' concerns over traffic issues. Passed in an 11-2 vote, the ordinance mandates extra insurance coverage and safety data submission. The new rules, effective January 2026, impose a $300 fine per order for non-compliance. A controversial 15-cent delivery fee was removed from the bill. DoorDash and Grubhub expressed relief over the fee's removal but have ongoing concerns. The ordinance awaits Mayor Wu's signature.

📍 The UK travel websites rank 23rd out of 29 industries for digital accessibility, with an average of 59.7 accessibility errors per homepage according to the 2025 WebAIM Million Report. Common issues include low-contrast text (79.1% of pages), missing alternative text (55.5%), and unlabelled form inputs (48.2%). Despite a 10.3% decrease in accessibility errors across all sectors, the travel industry still presents substantial challenges for disabled users. With the European Accessibility Act (EAA) coming into effect in June, companies must meet stricter standards. Nexer Digital's "I Matter Too" campaign promotes year-round accessibility integration into businesses' digital strategies, highlighting the 16 million disabled people in the UK who have a combined spending power of £274 billion.

💸 President Donald Trump announced global reciprocal tariffs, ranging from 10% to 46%, with China at 34% and the EU at 20%. Goldman Sachs predicts a 35% chance of a US recession, up from 20%. The Dow dropped 1,400 points in response. US food supply chain stability is at risk due to reliance on trade with affected allies. The National Restaurant Association warns that tariffs will raise food and packaging costs, creating uncertainty for operators. Vietnam, with $1.5 billion in seafood exports to the US in 2024, faces the highest tariff at 46%.

📈 President Donald Trump announced new global reciprocal tariffs ranging from 10% to 46%, with China and the European Union facing 34% and 20% respectively. Goldman Sachs predicts a 35% chance of recession, up from 20%. The DOW dropped 1,400 points. The U.S. food supply chain may be affected due to reliance on trade with Mexico, Canada, the EU, and China. The National Restaurant Association warns of cost hikes and uncertainty for operators. Vietnam faces the highest tariff at 46%, impacting its $1.5 billion seafood exports to the U.S. in 2024.

🔔 The Tax Cuts and Jobs Act (TCJA) of 2017 benefits small hotel businesses, but key provisions are set to expire. More than half of U.S. hotels operate as small businesses, including women- and minority-owned ones. The Small Business Deduction (Section 199A) offers a 20% deduction until 2025, with AHLA lobbying for permanence to avoid a potential 33% tax hike. Bonus depreciation will decrease from 100% to 40% in 2025 and to 20% in 2026, ending by 2027. The Like-Kind Exchange rules have no expiration but face potential limitations. AHLA is also pushing to maintain current individual and corporate tax rates, reinstate full EBITDA deductions, make the estate tax permanent, and extend Opportunity Zones Tax Incentives. The AHLA's "2025 State of the Industry Report" highlights rising costs and labor shortages. Hoteliers will advocate in Washington at AHLA's Hotels on the Hill in May as expiration dates loom.

🎫 Resorthoppa went into administration in March 2025 owing £8.25 million. The company was sold to Hoppa Group for £398,000, with US-based Elife Tech as the sole shareholder. A total of 17 employees and the group's directors transferred to the purchaser. Resorthoppa emerged from a CVA in November 2024, repaying £3.28 million to creditors at a rate of 75p in the pound but still owed £8.19 million to unsecured creditors including 18 businesses. The administration was linked to the collapse of Lowcost Holidays in 2016 and a £1.27 million bad debt from a Majorca transfers provider collapse in 2017.

📌 UK Chancellor Rachel Reeves announced economic measures in her Spring Statement, extending business rates relief but not fully addressing cost pressures. OBR halved the UK's 2025 growth forecast from 2% to 1% due to global instability and borrowing costs. The Retail, Hospitality and Leisure Relief (RHLR) is extended for another year at a reduced 40% rate, with a cap of £110,000 per business. Small businesses with properties under a £51,000 rateable value will benefit from a small business multiplier freeze. From April, the National Living Wage will increase by 6.7%, giving a £1,400 annual raise to three million workers. Hospitality sector leaders are disappointed with the lack of meaningful support, as the sector faces a £3.4 billion annual tax hike. NICs threshold changes will lead to reduced recruitment and employment. Visa and immigration fees will rise from 10 April 2025, with a Certificate of Sponsorship for skilled workers increasing from £239 to £525, expected to generate £400 million by 2029/30. Hospitality in London faces a £300 million impact from a 15% NICs hike, with the earnings threshold lowered from £9,100 to £5,000, pushing for technological adoption for survival. With the UK economy shrinking by 0.1% in January and interest rates at 4.5%, hotels may stop recruiting, cancel investments, and increase prices. Short-

💸 Resorthoppa (UK) emerged from a Corporate Voluntary Arrangement (CVA) in November before entering administration on March 4; its assets were sold to Hoppa Group, established in February. The failure is linked to a £1.3 million debt write-off from Lowcost Travel Group's 2016 collapse. Resorthoppa (UK), owned by WWTE Ltd since 2012, recorded annual losses from 2017-2022, totaling nearly £5.4 million. Hoppa Group, now home to former Resorthoppa staff, continues operations with all bookings protected, owned by US-based Elife Tech.