Nearly 500,000 Hotel Jobs Could Be Lost by Year-End
There are 100’s of industries that are on life support due to the pandemic. The hotel industry is just another example. The hotel industry is hurting by COVID and facing an uncertain future. These are stories that you don’t read about in the media. The stories are real and point to a business climate in America that is struggling. I received the following stats from the American Hotel & Lodging Association.
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
Hotel occupancy projects to drop ten percentage points from 2019 levels
Hotel room revenue will be down $44 billion this year compared to 2019
States and localities will have lost more than $20 billion in unrealized tax revenues from hotels over the past two years
What does the future hold for the hotel industry? If these 500,000 or so jobs have not returned by the end of the year, then you can probably consider a good percentage of these jobs lost for good.
The AHLA is not expecting business travel to return to 2019 levels until 2023 and 2024. How can hotels be expected to survive? Plus, what does the future hold for business travel now that businesses have been able to use zoom and other online meeting resources? From now on, it is going to be about cutting costs.
Congress has done very little to help the hotel industry. The AHLA is lobbying for more aid, and rightfully so. The landscape of America is looking to change dramatically in the future.
What will things look like in the future? Congress can only help so many industries.
Need a second opinion about money and investment issues? Just ASK BOB! Bob is available and always happy to share his views. Bob Brooks is a Financial Adviser and host of The Prudent Money Radio Show, aired daily at 3 PM CST on 91.3 FM, 97.5 FM, and 99.9 FM in the Dallas Forth Worth metroplex. Listen online at www,prudentmoney.com. You can reach Bob at 972-386-0384 and online at firstname.lastname@example.org.