Study Showcases Impact of COVID-19 on Hotel Industry Employment, Arizona Down 18.3%

Midway through 2021, a new report and state-by-state job loss breakdown released by the American Hotel & Lodging Association (AHLA) find that while leisure travel is starting to return, the hotel industry’s road to recovery from the pandemic is long and uneven, with urban markets disproportionately impacted.

Industry projections have improved since January with the uptick in leisure travel, but the industry remains well below pre-pandemic levels. Key findings include:

1. More than one in five direct hotel operations jobs lost during the pandemic—nearly 500,000 in total—will not have returned by the end of the year
2. Hotel occupancy is projected to drop ten percentage points from 2019 levels
3. Hotel room revenue will be down $44 billion this year compared to 2019
4. States and localities will have lost more than $20 billion in unrealized tax revenues from hotels over the past two years

The findings come as AHLA and the Asian American Hotel Owners Association host their Virtual Action Summit (July 20-22), where hoteliers from nearly every state across the country are scheduled to meet with members of Congress to share how COVID-19 impacted the industry and call for additional aid by urging Congress to:

• Cosponsor and pass the Save Hotel Jobs Act (S.1519/H.R.3093)
• Cosponsor and pass bills to establish fair per diem rates (H.R.2104/S.2160)
• Help provide hoteliers access to the Employee Retention Tax Credit, which currently excludes many hoteliers

“Despite an uptick in leisure travel, midway through 2021 we’re still seeing that the road to a full recovery for America’s hotels is long and uneven. These findings show the economic devastation still facing hotel markets and underscore the need for targeted relief from Congress for hotel workers and small businesses,” said Chip Rogers, president and CEO of AHLA. “Hotels and their employees have displayed extraordinary resilience in the face of unprecedented economic challenges, but whether it’s the Save Hotel Jobs Act, fair per diem rates, or expanding the aperture on the Employee Retention Tax Credit, we need Congress’ help on the way to a full recovery. That’s why the industry is united behind our Virtual Action Summit.”

COVID-19 is the single worst economic event in the history of the American hotel industry. While the recent uptick in leisure travel for summer is encouraging, business and group travel, the industry’s largest source of revenue, will take significantly longer to recover. Business travel is down and not expected to return to 2019 levels until at least 2023 or 2024. Major events, conventions and business meetings have also already been canceled or postponed until at least 2022.

Despite being among the hardest hit by the pandemic, hotels are the only segment of the hospitality and leisure industry yet to receive direct COVID-related aid.

The American Hotel & Lodging Association (AHLA) is the sole national association representing all segments of the U.S. lodging industry. Headquartered in Washington, D.C., AHLA focuses on strategic advocacy, communications support and workforce development programs to move the industry forward. In the wake of the COVID-19 pandemic, hospitality was the first industry impacted, and it will be among the last to recover. That is why AHLA is committed to promoting safe travel while also creating a standardized safety experience nationwide through the Safe Stay initiative. With an enhanced set of health and safety protocols designed to provide a safe and clean environment for all hotel guests and employees, hotels across America are ready to welcome back travelers when they are ready to travel.