THE U.S HOTEL industry supports one in 25 American jobs and pours $660 billion annually into the country’s GDP, according to a new study from Oxford Economics. The study, sponsored by the American Hotel and Lodging Association and the American Hotel and Lodging Educational Foundation, also found that the industry sales increased 43.5 percent since 2010.
Hotels support about 8.3 million jobs a year, and the number has increased 1.1 million since 2015, according to the study, which is part of AHLA’s Dreams Happen Here campaign that highlights the economic impact of hotels. It also found that 1.3 billion guests stayed in American hotels last year and that there are 2.3 million hotel jobs directly on properties, up more than 160,000 jobs since 2015.
At the same time, according to AHLA, U.S. Department of Labor figures show there are nearly one million job vacancies in the hospitality sector.
“We are at a critical moment for our industry. Demand for hotels has never been higher, but we are also facing the tightest labor market in a generation,” AHLA President and CEO Chip Rogers said. “Together with AHLEF, AHLA is working to advance polices that will allow hoteliers to meet our workforce needs, deliver the quality service and amenities our guests expect and deserve, and invest in our employees and communities.”
Other findings of the study include:
- Hotels support a total of $395 billion in wages, salaries and other compensation, both directly at our properties and in the communities they serve.
- A representative hotel with 100 occupied rooms supports more than 240 local jobs and generates $18.4 million in guest spending.
- For every $100 hotel guests spend on lodging, another $222 is spent at the destination—totaling $278 billion per year spent on transportation, dining, shopping, etc. at U.S. businesses during stays.
- Hotels generate $186 billion that goes back to communities through local, state and federal taxes.
AHLA members will meet with U.S. Congress member and their staff in Washington, D.C., this month to discuss the industry’s economic impact and federal policy priorities. Last year, then AHLA President and CEO Katherine Lugar attended the U.S. Conference of Mayors’ annual winter meeting in Washington to discuss the importance of the industry to the nation’s cities.
“From small and independent hotels to the global hotel brands to real estate owners, our industry is a major economic driver in communities across the United States. And we do that in partnership with each of you,” Lugar told the mayors then. “Every time a new hotel is built in your cities, your community reaps the benefits of spending and jobs that go well beyond our properties.”