Tourism tax collections down $20 million; lost business now totals more than $150 million

Raleigh, N.C. (Dec. 8, 2020) Visit Raleigh 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 October as well as the latest hotel performance data for November and updated event cancellation totals.

It’s important to note that Wake County typically draws nearly 18 million visitors annually who spend more than $2.9 billion locally and generate more than $284 million in state and local tax revenue. The visitor economy 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:

  • Hotel lodging tax collections through October 2020 are down $13.7 million (or 52.8%) over last year.
  • Prepared food and beverage tax collections through October 2020 are down $6.4 million (or 24.0%) over last year.
  • 308 conventions, meetings and group sporting events cancelled, totaling $151.2 million economic impact.
  • 49 conventions, meetings and group sporting events have been rescheduled for a future date, totaling more than $33.4 million economic impact.
  • Weekly hotel occupancy ranged anywhere from 35.5% to up to 49% in the month of November.

“We are optimistic that with vaccination now underway travel may begin to return in late Spring of 2021,” said Dennis Edwards, President and CEO of Visit Raleigh. “We know there is pent up demand amongst leisure visitors and business travelers alike, but even with that it will be a long road to full pre-pandemic-level recovery and we know competition for visitors will be fiercer than ever.”

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 continued lower than normal visitation due to COVID-19 in the month of October, hotel lodging tax collections were down nearly 60% compared to 2019, bringing in almost $1.2 million. Prepared food and beverage (PFB) tax collections were also down 14.4% in October compared to 2019, bringing in more than $2.3 million.

Month of Oct. 2020:

Oct. Tax Collections

Wake County
(2020)

Wake County
(2019)

Amt. Change

% Change

Hotel Occupancy

$1,198,587

$2,961,287

↓ ($1.7 M)

↓ 59.5%

Prepared Food
and Beverage

$2,321,539

$2,712,637

↓ ($391 K)

↓ 14.4%

Year-to-date (January 1 through October 31), hotel lodging tax collections totaled more than $12 million, down more than 52% YTD over 2019. Prepared food and beverage (PFB) tax collections totaled over $20 million, down 24.0 % YTD over 2019.

Year to Date (Jan. through Oct. 2020):

YTD Tax Collections
(Jan. – Oct.)

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

$20,402,652

$26,843,055

↓ ($6.4 M)

↓ 24.0%


Meetings, Conventions and Sporting Events Sector Impact:
Visit Raleigh along with the Greater Raleigh Sports Alliance (GRSA) had booked 308 conventions, meetings and group sporting events throughout Wake County that have been canceled, totaling over 378,000 attendees and resulting in more than $151.2 million in total lost economic impact.

KPI

Wake County
(Through 12/6/20)

Meetings, Conventions and Sports Events Cancelled

308

Projected Attendees                          

378,067

Projected Hotel Room-Nights

252,218

Projected Economic Impact Lost

$151.2 M

However, working with local hotels, event venues and competition sites, the organization’s sales teams were able to reschedule 49 events, preventing them from canceling outright.

KPI

Wake County
(Through 12/6/20)

Meetings, Conventions and Sporting Events Rescheduled

49

Projected Attendees

77,515

Projected Hotel Room-Nights

65,845

Projected Economic Impact

$33.4 M

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


Hotel Sector Impact:
According to STR, Wake County has remained near 45% hotel occupancy throughout the month of October. Group travel to the area has remained minimal, and weekly hotel occupancy throughout Wake County was creeping toward 50% in November, minus the week of Thanksgiving which typically runs at lower occupancy rates anyway.

Month of Oct. 2020 Overall

KPI

Wake County
(Oct. 2020)

% Change
(Oct. 2020 vs. Oct. 2019)

Occupancy

44.7%

44.4%

Average Daily Rate (ADR)

$81.10

28.7%

Revenue Per Available Room (RevPAR)

$36.25

60.4%

 

Weeks of Nov. 1-28, 2020

KPI

Wake County
This Year

Same Week
Last Year

% Change

Occupancy
(Nov. 1-7)

46.3%

86.8%

↓ 46.7%

Occupancy
(Nov. 8-14)

47.8%

79.0%

↓ 39.5%

Occupancy
(Nov. 15-21)

49.0%

80.1%

↓ 38.8%

Occupancy
(Nov. 22-28)

35.5%

52.9%

↓ 32.9%

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

# # #