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5 Things To Know for Aug. 21

Today's Headlines: FEMA Approves Relief for Maui Residents; Tropical Storm Hilary in Southern California; Leisure Travelers Pickier in How They Spend; Hilton Bets on China's Middle Class; Hotel Workers Strike in Phoenix
Workers set up signs warning of flooding in San Bernardino, California, as Tropical Storm Hilary, the first in more than 80 years for Los Angeles, sweeps across Southern California. (Getty Images)
Workers set up signs warning of flooding in San Bernardino, California, as Tropical Storm Hilary, the first in more than 80 years for Los Angeles, sweeps across Southern California. (Getty Images)
Hotel News Now
August 21, 2023 | 2:37 P.M.

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1. FEMA Approves Relief for Maui Residents

The Federal Emergency Management Agency said Friday that it has approved more than $5.6 million in relief funds for Maui residents affected by the wildfires, Forbes reports. Of the total, $2.3 million will go to nearly 2,000 households to help cover rent and hotel stay costs.

Risk modeling firm Karen Clark & Company said $3.2 billion is "the estimated cost in insured property losses for buildings damaged by wildfires in Lahaina, according to risk modeling firm Karen Clark & Company. An estimated 2,200 structures were damaged or destroyed by fire."

AP News reports that residents are urging tourists to keep out as they rebuild the island.

“Tourism has definitely been a hindrance at this point, because we need to take care of our families — our ohana,” a Maui resident told the news outlet.

2. Tropical Storm Hilary in Southern California

Tropical Storm Hilary was downgraded from a hurricane by the National Weather Service, but Gov. Gavin Newsom has declared a state of emergency for most of Southern California, Reuters reports. This is Los Angeles' first tropical storm in more than 80 years.

"We know that it could get much worse," Los Angeles Mayor Karen Bass said in a news briefing Sunday. "My concern is that people will be a little dismissive and go out when we need people to stay at home, to stay safe."

San Bernardino County ordered evacuations of its mountain towns and residents in valleys, and Ventura County issued warnings of life-threatening flooding.

3. Leisure Travelers Pickier in How They Spend

Hoteliers and travel experts on stage at the recent Hotel Data Conference said leisure guests are increasingly searching for good value and quality, prompting them to look for different ways to travel, reports Hotel News Now's Bryan Wroten.

Steve Contos, executive vice president at Davidson Hotels & Resorts, said someone could spend $1,500 a night or $6,000 a week at a luxury hotel in Orlando or spend the same and take the Ritz-Carlton yacht to an all-inclusive in the Greek islands.

“The consumer is looking for different ways [to travel], and it's really evidenced by the way all-inclusive and the cruises almost doubled their demand,” he said.

4. Hilton Bets on China's Middle Class

The South China Morning Post reports that Hilton is pushing forward on expanding its footprint in China as the company predicts that demand will surge from China's middle class.

Hilton plans to open more than 730 hotels in mainland China in the next 10 years, said Clarence Tan, a senior vice-president of development for Asia-Pacific.

“Approaching 2024, we expect to see more specific opportunities emerge in some destinations across Asia-Pacific, where prices have been adjusted downwards, enabling interested parties to reconsider,” said Nihat Ercan, CEO for Asia-Pacific at JLL hotels and hospitality group. “Investors remain very committed to the Asia-Pacific hospitality sector and we see ongoing appetite among buyers to invest in key markets and strategic assets, with the ability to deploy capital.”

5. Hotel Workers Strike in Phoenix

Workers of the Hilton Phoenix Resort at the Peak in Phoenix protested Friday for higher wages in a new union contract, TV station 12News KPNX reports. The employees are part of Unite Here Local 11.

Workers say wages are not keeping up with the rising costs of living in Phoenix.

"Nationwide, the Bureau of Labor Statistics shows leisure and hospitality weekly earnings have risen in the last four years. The median hourly wage for hospitality workers, not including supervisors, nationally was $18.87. The data show workers affiliated with a union earn more than non-union members, but does not reflect any dues paid to the unions," the news outlet reports.

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News | 5 Things To Know for Aug. 21