U.S. hotels are set to make a significant fiscal contribution this year, according to the latest report from the American Hotel & Lodging Association (AHLA). Projections indicate that the industry will generate an unprecedented amount of federal, state, and local tax revenue in 2024, alongside paying historic levels of wages and compensation to their employees.
The AHLA's state-by-state projections reveal a staggering forecast of nearly $83.4 billion in total tax revenue from hotels in 2024. Leading the charge are states like California, New York, Nevada, Florida, and Texas, anticipated to contribute the most to this record-breaking figure.
In tandem with the surge in tax revenue, hotels are also expected to pay out a record $123.4 billion in wages, salaries, and compensation this year, marking a substantial increase from 2023. This boost in employee remuneration reflects the industry's commitment to its workforce amid challenging times.
Moreover, guest spending within hotels is forecasted to climb to $758.6 billion in 2024, representing a nearly 5% rise from the previous year and a remarkable 24% surge since 2019. This uptick encompasses expenditures on lodging, transportation, dining, retail, and other services.
While the industry plans to onboard approximately 45,000 new employees in 2024, it still faces a shortfall of about 225,000 jobs compared to pre-pandemic levels. The leisure and hospitality sector, according to the Bureau of Labor Statistics, continues to grapple with over 1 million unfilled positions as of February.
Despite offering near-historic average wages and enhanced benefits, hotels confront significant hurdles in recruiting new talent amidst a nationwide labor shortage. February 2024 statistics reveal average hotel wages at $23.84 per hour, yet vacancies persist, with over 80,000 open positions in the U.S. alone, as per Indeed.
Kevin Carey, Interim President and CEO of AHLA, acknowledges the industry's positive outlook for 2024 but underscores the formidable obstacles hindering its growth. These challenges include the ongoing labor shortage, inflationary pressures, and potential regulatory hurdles, all of which necessitate proactive solutions to ensure sustained prosperity for hoteliers.
AHLA remains steadfast in its commitment to advocating for solutions to the pressing challenges faced by the hotel industry. By addressing workforce shortages, combating inflation, and advocating for policies conducive to economic expansion, the association aims to empower hoteliers to focus on their core mission: providing exemplary service to guests.
In conclusion, the hotel industry's projected record tax contributions and wage payments underscore its vital role in the broader economy. However, with persistent challenges on the horizon, concerted efforts are imperative to safeguard its continued success and resilience.
Source: Hotels Mag