According to state-by-state projections released by the American Hotel & Lodging Association and Oxford Economics, hotel-generated state and local tax revenue will reach new heights nationally ($46.71 billion) and in states across the nation this year,
Average U.S. hotel occupancy is projected to reach 63.8 percent in 2023—just shy of 2019’s level of 65.9 percent. Staffing is expected to remain a challenge for many U.S. hotels in 2023, as the industry continues to grow its workforce back to pre-pandemic levels.
A member survey conducted in October found that nearly all hotels are experiencing staffing shortages, although that number is less than it was a few months ago. A full 87 percent of survey respondents indicated they are experiencing a staffing shortage, 36 percent severely so. The most critical staffing need is housekeeping, with 43 percent ranking it as their biggest challenge.
“Hotels are making significant strides toward recovery, supporting millions of good-paying jobs and generating billions in state and local tax revenue in communities across the nation,” AHLA President and CEO Chip Rogers said in a statement. “To continue growing, we need to hire more people. Fortunately, there’s never been a better time to be a hotel employee, with wages, benefits, flexibility and upward mobility better than ever before.”
The 10 states projected to have the highest gross increase in hotel-generated state and local tax revenue from 2019 to 2023 are:
Hotel Hiring
Hotels across the country are on a hiring spree because they’re looking to fill many of the jobs lost during the pandemic. As of December, national average hotel wages were at historic highs of more than $23/hour and hotel benefits and flexibility are better than ever. Nearly 100,000 hotel jobs are currently open across the nation, according to Indeed.
To help hotels fill open jobs and raise awareness of the hotel industry’s more than 200 career pathways, the AHLA Foundation’s “A Place to Stay” multichannel advertising campaign is now active in 14 cities. Additionally, AHLA affiliate “Hospitality is Working” recently launched the Workforce & Immigration Initiative. The effort is aimed at urging Congress to address workforce shortages with bipartisan solutions to incorporate more immigrants into the American economy. On average nationally, every direct hotel job supports an additional 2.6 jobs in the community, according to the projections.
The 10 states expected to have the highest direct and hotel-supported employment levels in 2023 are:
The 10 states projected to have the highest hotel occupancy in 2023 are:
AHLA and Questex, parent company of Hotel Management Magazine, have partnered to launch The Hospitality Show, a new hospitality operations and technology event that will be held June 27-29 at The Venetian Las Vegas. The Hospitality Show is poised to bring together senior executives of hotel brands, owners and management companies for networking, education and curated buying experiences.