June sees largest tax collections since shutdown began, however tax collections still down $11.2 million YTD

Raleigh, N.C. (Aug. 7, 2020) – The Greater Raleigh Convention and Visitors Bureau (Visit Raleigh) and the Greater Raleigh Sports Alliance (GRSA) released today a report detailing the impact that COVID-19 is having on the tourism and hospitality industry throughout Wake County. Included in the report is tax collection data for the month of June as well as the latest hotel performance data for July and updated event cancellation totals.

It’s important to note that Wake County typically draws 16.8 million visitors annually who spend more than $2.7 billion locally and generate more than $250 million in state and local tax revenue. The hospitality industry overall represents more than 67,000 jobs locally and is vital to the overall health of the economy.

Highlights:

• Hotel lodging tax collections so far this year are down ↓ $7.2 million (or 48.5%) over last year.
• Prepared food and beverage tax collections so far this year are down ↓ $4 million (or 25.7%) over last year.
• The month of June saw the largest tax collection totals since the pandemic started affecting tourism in March.
• 227 conventions, meetings and group sporting events cancelled, totaling $118.5 million economic impact.
• 35 conventions, meetings and group sporting events were rescheduled for a future date, totaling $19.6 million economic impact.
• At least 110 large-scale events and festivals have been canceled or rescheduled.
• Nearly all of the 160+ hotels throughout Wake County are back open, only five remain closed (mostly B&Bs).
• Average hotel occupancy rates are hovering between 40-45% countywide.

“Hotel occupancy and restaurant sales both continue to increase slowly month-to-month and those are promising trends,” said Dennis Edwards, President and CEO, of Greater Raleigh Convention and Visitors Bureau (Visit Raleigh). “That said as we continue to remain in Phase 2 of reopening, promoting safety measures and protocols in place by our hospitality industry locally will remain paramount to our success in continuing to attract travelers back to Wake County.”

Below is a breakdown by sector of the impact COVID-19 has had on the tourism and hospitality industry in Wake County.

Tax Collection Impact:
As a result of the lower than normal visitation due to COVID-19 in the month of June, hotel lodging tax collections were down 53.4% compared to 2019, bringing in $1.2 million. Prepared food and beverage (PFB) tax collections were also down 23.4% in June compared to 2019, bringing in just over $2.1 million. On a positive note, both hotel occupancy and PFB tax collections were up to the highest they’ve been since the COVID pandemic started affecting the area in March.

Month of June 2020:

Year-to-date (January 1 through June 30), hotel lodging tax collections totaled more than $7.7 million, down 48.5% YTD over 2019. Prepared food and beverage (PFB) tax collections totaled more than $11.7 million, down 25.7% YTD over 2019.

Year to Date (Jan. through June 2020):

However, working with local hotels, event venues and competition sites, the organization’s sales teams were able to reschedule 35 events, preventing them from canceling outright.

Note:
These figures represent only business booked by Visit Raleigh/GRSA and are not representative of all events lost within Wake County.

Public Events Impact:
At least 110 large scale events and festivals have been canceled or rescheduled.

Note:
Only large-scale public events that draw more than 100 people. It is not representative of all events throughout Wake County. Complete attendance data and economic impact data not available.

Hotel Sector Impact:
As Phase Two continues across the state through at least September 11, nearly 100% of Wake County hotels have reopened. Less than five of the more than 160 hotel properties in Wake County are still temporarily closed, most of which are B&Bs. A complete list of Hotels Temporarily Closed can be found on VisitRaleigh.com.

Group travel to the area has remained minimal, but hotel occupancy throughout Wake County has continued to slightly trend upward. According to STR, Wake County has remained above 40% hotel occupancy throughout the month of July.

Month of June 2020 Overall

Week of June 28-July 4, 2020

Week of July 5-11, 2020

Week of July 12-18, 2020

Week of July 19-25, 2020

Week of July 26-Aug 1, 2020

Interviews with a Visit Raleigh spokesperson can be arranged via phone or video conferencing. 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 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 provides opportunity for people in the community. Raleigh/Wake County, N.C., welcomes nearly 17 million visitors annually whose spending tops $2.7 billion. The visitor economy supports more than 27,000 local jobs in Wake County and generates $268 million in state and local tax revenues, saving each Wake County household $700 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 to generate and/or retain sports-related businesses (tournaments, championships, special events and meetings) to drive economic development. Raleigh, N.C./Wake County welcomes nearly 17 million visitors annually whose spending tops $2.7 billion. The visitor economy supports more than 26,170 local jobs in Wake County and generates more than $250 million in state and local tax revenues, saving each Wake County household $671 in taxes annually. raleighsports.org

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

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