Dive Brief:

• In 2022, hotels supported 8.3 million American jobs, which is equivalent to nearly 1 in every 25 jobs, according to an economic analysis conducted by Oxford Economics for the American Hotel & Lodging Association.
• Hotel guests spent a total of more than $691.2 billion at hotels and on ancillary services such as transportation and food and beverage last year, the report found.
• Increased hotel-related economic activity is resulting in more career opportunities, but hotel employment was down by more than 250,000 jobs in April 2023 as compared to February 2020, according to the U.S. Bureau of Labor Statistics, with many hotels still looking to fill jobs lost during the pandemic.

Dive Insight:

According to the analysis, total business sales supported by hotels increased to $1.5 trillion last year, a 29.9% gain compared to 2021 and 7.6% above pre-pandemic levels. The industry also contributed $759.9 billion to U.S. gross domestic product in 2022 and directly generated $72.4 billion in federal, state and local tax revenue and supported nearly $211.2 billion in total tax revenue.

Further reinforcing current consumer trends, AHLA reported that, during the fourth quarter of 2022, lodging accounted for 0.87% of household spending, which is slightly higher than the average in 2019. For each $100 spent on lodging, hotel guests spent another $220 during their trip, which contributed to the local and state economies all along the travel route. The amount of spending that occurred on-site at hotels ($323.7 billion, or 47% of total guest spending) was slightly lower than the amount spent off-site ($367.5 billion, or 53% of total guest spending).

In 2022, California was the top state in terms of hotel guest spending with $78.4 billion; it also ranked first in total wages, salaries and compensation ($62.7 billion). 

Overall, the hotel industry paid employees more than $104 billion in total wages, salaries and other compensation in 2022 and supported $463 billion in total wages, salaries and other compensation. 

Direct hotel industry employment increased to 2 million jobs in 2022, a decrease of 15.9% relative to 2019. According to an AHLA survey published in February, nearly 80% of hotels reported staffing shortages. As a result, respondents in the survey said they were increasing wages, offering greater flexibility and expanding benefits in order to attract talent. As of March, national average hotel wages were among the highest ever at more than $23 per hour.

“Hotels are investing in our workforce to create good jobs that power local economies, and this analysis is proof of that,” said AHLA President and CEO Chip Rogers in a release. 

“To continue supporting millions of good-paying jobs and generating billions in tax revenue in communities across the nation, hotels need to hire more people. The good news is that there’s never been a better time to build a lifelong hotel career, with average hotel wages at near-record levels, better benefits than ever before, and unprecedented opportunity to move up the ranks.”

However, hotel workers across the country are fighting for fairer wages. In April, the New York/New Jersey Hotel and Gaming Trades Council reached a deal to increase wages by $7.50 per hour, while the Los Angeles City Council has proposed a wage increase to $25 per hour.

​​“LA’s tourism industry thrives on the hard work of its employees. But right now, minimum wage workers must work over 100 hours a week just to afford an apartment in LA,” said LA City Council member Katy Yaroslavsky. “It’s time to raise the wage and make sure that the people who make Los Angeles a world-class destination can actually afford to live here.