Tennessee was hit hard by COVID-19 and the hotel industry, perhaps harder. The expected job loss at hotel’s across the Volunteer State is expected to add up to 5,600 jobs as 2021 comes to a close over the next 4-months.
A look at all of the markets HERE.
Travel throughout the pandemic has been something that many Americans have decided not to do. The decision to cut-out business and leisure travel may have been made to save money because of job loss or for companies to save money due to expenses being cut after seeing a loss of revenue. Whatever the reason, hotel stays are down throughout the country.
Business travel is the hotel industry’s largest source of revenue and has been slow to return since the onset of the pandemic. Business travel includes corporate, group, government, and other commercial categories. Business travel revenue is not expected to reach pre-pandemic levels until 2024.
The new analysis comes on the heels of a recent AHLA survey, which found that most business travelers are canceling, reducing, and postponing trips amid rising COVID-19 cases.
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The lack of business travel and events has major repercussions for employment, and underscores the need for targeted federal relief, such as the Save Hotel Jobs Act.
Hotels are expected to end 2021 down nearly 500,000 jobs compared to 2019. For every 10 people directly employed on a hotel property, hotels support an additional 26 jobs in the community, from restaurants and retail to hotel supply companies—meaning an additional nearly 1.3 million hotel-supported jobs are also at risk.
“While some industries have started rebounding from the pandemic, this report is a sobering reminder that hotels and hotel employees are still struggling,” said Chip Rogers, president and CEO of AHLA. “Business travel is critical to our industry’s viability, especially in the fall and winter months when leisure travel normally begins to decline. Continued COVID-19 concerns among travelers will only exacerbate these challenges. That’s why it’s time for Congress to pass the bipartisan Save Hotel Jobs Act to help hotel employees and small business owners survive this crisis.”
COVID-19 is the worst economic event in the history of the U.S. hotel industry. Many urban markets, which rely heavily on business from events and group meetings, continue to face a severe financial crisis, as they have been disproportionately impacted by the pandemic.
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Top 3 markets projected to end 2021 with the largest declines in hotel revenue:
• New York, NY with a projected $4-Billion Revenue Loss
• Washington, DC with a projected $2.3-Billion Revenue Loss
• San Francisco, CA with a projected $2.3-Billion Revenue Loss
Top 3 states projected to end 2021 with the largest declines in hotel revenue:
• California with a $9.8-Billion Loss in Revenue
• Florida with a $5.3 Billion Loss in Revenue
• New York with a $5-Billion Loss in Revenue
Despite being among the hardest hit, hotels are the only segment of the hospitality and leisure industry yet to receive direct aid. Hotels and their employees have displayed extraordinary resilience in the face of unprecedented economic challenges, and the industry needs support from Congress to achieve a full recovery.
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