In an unexpected move, U.S. Senators Dick Durbin and Roger Marshall have introduced a bill that could have profound implications for credit card users and the travel industry in Nevada. The proposed legislation aims to eliminate credit card rewards, a significant benefit enjoyed by consumers who use credit cards for their purchases. If the Durbin-Marshall bill is enacted, it could deal a severe blow to Nevada’s tourism sector, impacting the thousands of visitors who rely on credit card rewards to fund their trips.
A recent survey by LendingTree revealed that 87 percent of consumers possess at least one credit card with a rewards program. These rewards, earned through everyday transactions such as grocery shopping, fuel purchases, bill payments, or online shopping, often translate into cash back or reward points. These accrued benefits are frequently utilized to cover various vacation expenses, including flights, hotels, and other travel-related costs. Airlines for America conducted a study indicating that credit card rewards facilitated over 800,000 trips to Nevada in 2022, contributing to nearly $1.2 billion in economic activity and supporting over 8,000 jobs in the state.
The timing of this proposed legislation could not be worse for Nevada’s thriving $75 billion travel and tourism industry, which has been making a robust recovery from the pandemic’s impact. By the end of 2022, spending by Nevada’s 50 million-plus visitors had exceeded the previous year by 25 percent, surpassing even the 2019 levels. The potential elimination of credit card rewards may lead to a decrease in travel affordability, directly affecting Nevada’s economy.
Furthermore, the bill poses a significant threat to the livelihoods of employees in the travel and tourism sector, a crucial component of Nevada’s workforce. Beyond the risk of job losses, a recent poll indicated that one in three Americans with household incomes below $50,000 would curtail their travel if credit card rewards were eliminated. For the individuals responsible for tasks such as hotel room cleaning, table bussing, shuttle driving, and tour guiding, this legislation represents a dual challenge.
As the proposed bill navigates through the legislative process, its potential impacts on consumer spending habits, employment rates, and the overall economic health of Nevada remain subjects of intense scrutiny. The debate around this legislation underscores the delicate balance between consumer benefits and economic considerations in the ongoing policy discussions in Washington.