Tourism tax collections down $21 million in 2020, signs pointing towards recovery by summer

Raleigh, N.C. (Feb. 9, 2021) – With fourth quarter data (Oct. – Dec. 2020) now in, Visit Raleigh has released the year-end 2020 Wake County Tourism Impact Report. The pandemic caused a significant decrease in group, business and leisure travel, hotel occupancy and event cancellations in 2020. However, Visit Raleigh projects visitation could see signs of recovery by late summer 2021.

With the global pandemic significantly affecting the tourism and hospitality sectors, it’s important to note that in 2019 Wake County drew nearly 18 million visitors who spent more than $2.9 billion locally and generated more than $284 million in state and local tax revenue. Further, the visitor economy typically supports more than 28,000 local jobs in Wake County with a payroll of $836 million and is vital to the overall health of the economy.

Highlights:
Group Business Overview

  • Visit Raleigh and the Greater Raleigh Sports Alliance (GRSA) hosted 95 events in 2020, welcoming more than 158,000 attendees to the area and generating $50 million in economic impact throughout Wake County.
  • 327 conventions, meetings and group sporting events cancelled, totaling $175.6 million economic impact.
  • 51 conventions, meetings and group sporting events rescheduled for future dates, totaling more than $37.1 million economic impact.
  • Hotel occupancy averaged 44.2% for the year. [down ↓ 40.1% over 2019]

Effect on Tax Collections

  • Hotel lodging tax collections totaled $12.2 million. [down ↓ $13.7 million (or 52.8%) over 2019]
  • Prepared food and beverage tax collections totaled $25 million. [down ↓ $7.4 million (or 23.0%) over 2019]

Future Business/Tourism Outlook

  • Visit Raleigh and the Greater Raleigh Sports Alliance were able to book 223 events for future dates, bringing an estimated 336,000 attendees to Wake County and generating a projected $114 million in economic impact.
  • Visit Raleigh projects some visitation could begin to fully recover by late summer 2021. (Full details here)
    • Leisure visitation will likely be back to full recovery in Q3 2021, with hopes that mass gatherings such as concerts, festivals and events will be able to take place.
    • Youth, amateur and collegiate sporting events are already taking place with limited capacity and should return to full capacity by Q3 2021.
    • Meetings and conventions will begin to return in Q2 2021, with 200‒300 attendees—with larger conventions returning in Q4 2021.
    • Business travel is forecasted to begin to recover in Q3 2021, with hopes that companies will slowly allow their employees to return to their offices.

“The tourism and hospitality sectors were dealt a massive blow by this global pandemic in 2020 and Wake County is no exception to that. Having said that, we are grateful for the meetings, conventions and youth and amateur sporting events that safely took place last year,” said Dennis Edwards, President and CEO, of Visit Raleigh. “We are optimistic that with vaccines now rolling out, we may see signs of recovery and the return of leisure and business travelers by this summer.”

Below is a full breakdown of the tourism and hospitality industry performance throughout Wake County in 2020.
 

Group Business Overview:
For the calendar year 2020, Visit Raleigh and GRSA had booked 327 conventions, meetings and group sporting events throughout Wake County that have been canceled, totaling more than 474,000 attendees and resulting in over $175.6 million in total lost economic impact.

Meetings, Conventions and Sports Events (Cancelled)

2020

Total Meetings, Conventions and Sports Events

327

Projected Attendees 

474,255

Projected Hotel Room-Nights

282,558

Projected Economic Impact Lost

$175.6 M

Fortunately, working with local hotels, event venues and competition sites, the organization’s sales teams were able to reschedule 51 events for a projected economic impact of more than $37 million, preventing them from canceling outright.

Meetings, Conventions and Sports Events (Rescheduled)

2020

Meetings, Conventions and Sports Events Rescheduled

51

Projected Attendees 

81,855

Projected Hotel Room-Nights

69,067

Projected Economic Impact Lost

$37.1 M
 

Wake County hospitality industry KPIs – according to the Smith Travel Research:
(Jan. 1 - Dec. 31, 2020)

KPI

Wake County YTD

Wake County
% Change
YTD

State Average
YTD

National Average
YTD

Hotel Occupancy

44.2%

↓ 40.1%

45%

44%

Average Daily Rate (ADR)

$86.68

↓ 20.6%

$91.23

$103.25

Revenue Per Available Room (RevPAR)

$38.31

↓ 52.4%

$41.06

$45.48

Hotel Room Night Supply

6.33 M

↓ 0.3%

↑ 0.8%

↓ 3.6%

Room Nights Sold

2.80 M

↓ 40.2%

↓ 30.7%

↓ 35.7%

Due to COVID-19 most key performance indicators for the hospitality industry fell during the month of March and have remained lower than normal through the end of calendar year 2020. According to STR through the fourth quarter, Occupancy dropped by more than 40% YTD, Average Daily Rate (ADR) decreased by over 20% YTD and Revenue Per Available Room (RevPAR) fell more than 52% YTD. These results are comparable to what is happening across the state and on a national level.
 

Hospitality Industry Tax Collections in 2020:
As a result of the continued decreased visitation due to COVID-19, hotel lodging tax collections totaled more than $13 million, down over 52% YTD over 2019. Prepared food and beverage (PFB) tax collections totaled more than $25 million, down over 23% YTD over 2019.

Tax Collections
(Jan. – Dec.)

Wake County
(2020)

Wake County
(2019)

Amt. Change

% Change

Hotel Occupancy

$12,277,394

$25,988,033

↓ ($13.7 M)

↓ 52.8%

Prepared Food and
Beverage

$25,055,592

$32,536,123

↓ ($7.4 M)

↓ 23%


Interviews with a Visit Raleigh spokesperson can be arranged via phone, video conference or in person. To arrange an interview, please contact Scott Peacock, Director of Public Relations, at 614.551.7981 or speacock@visitRaleigh.com.
 

About the Greater Raleigh Convention and Visitors Bureau (Visit Raleigh):
As the official destination marketing organization for Wake County, the Greater Raleigh Convention and Visitors Bureau (Visit Raleigh), is responsible for promoting Wake County as an attractive travel destination and enhancing its public image as a dynamic place to live and work. Through the impact of travel, the organization strengthens the economic position of and provide opportunity for people throughout Wake County. Raleigh, N.C./Wake County welcomes nearly 18 million visitors annually whose spending tops $2.9 billion. The visitor economy supports more than 28,000 local jobs in Wake County and generates $284 million in state and local tax revenues, saving each Wake County household $727 in taxes annually. visitRaleigh.com

About the Greater Raleigh Sports Alliance (GRSA):
A division of the Greater Raleigh Convention and Visitors Bureau (Visit Raleigh) - the Greater Raleigh Sports Alliance (GRSA) markets and promotes Raleigh and all of Wake County in order to generate and/or retain sports-related businesses (tournaments, championships, special events and meetings) for the purpose of economic development. Raleigh, N.C./Wake County welcomes nearly 18 million visitors annually whose spending tops $2.9 billion. The visitor economy supports more than 28,000 local jobs in Wake County and generates more than $284 million in state and local tax revenues, saving each Wake County household $727 in taxes annually. raleighsports.org

Media Contact:
Scott Peacock, Director of Public Relations
614.551.7981
speacock@visitRaleigh.com

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