Hospitality industry tax collections in April at historic lows,
hotel occupancy now hovering around 35%
 

Raleigh, N.C. (June 8, 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 as a result of the closure of restaurants and hotels and event cancellations. This report is compiled on an ongoing basis and Visit Raleigh has created a page on its website with the latest information for visitors and area businesses in the hospitality industry alike. VisitRaleigh.com/Covid-19

It’s important to note that Wake County 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.

“April was our first full month in shutdown mode and the affects that had on tax collections is evident,” said Dennis Edwards, President and CEO, of Greater Raleigh Convention and Visitors Bureau (Visit Raleigh).“Although still increasing slightly each week since May, hotel occupancy remains around 35% and we’re pleased that restaurants are allowed to re-open at limited capacity giving them the choice now to decide individually what’s best for their business, employees and customers.”

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

Tourism Industry Tax Collection Impact:
As a result of the continued decreased visitation due to COVID-19, hotel lodging tax collections were down 75.3% in April compared to 2019, bringing in $639,219. Prepared food and beverage (PFB) tax collections were also down 49.2% in April compared to 2019, bringing in $1.3 million. This marks the lowest hotel occupancy tax collections for a single month in more than 15 years and the lowest PFB tax collections for a single month since the recession in 2008.

Year-to-date through April 30, hotel lodging tax collections totaled more than $5.8 million, down 39.1% YTD over 2019. Prepared food and beverage (PFB) tax collections totaled more than $8 million, down 22.2% YTD over 2019.

Meetings, Conventions and Sporting Events Sector Impact:
Visit Raleigh and GRSA have booked 170 conventions, meetings and group sporting events throughout Wake County that have been canceled, totaling more than 195,000 attendees and resulting in more than $82.7 million in total lost economic impact.

However, working with local hotels, event venues and competition sites, the organization’s sales teams have also been able to reschedule 31 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.

Hotel Sector Impact:
With the implementation of Phase Two across the state, some Wake County hotels have begun to reopen. Currently 16 of the more than 160 hotel properties in Wake County are still temporarily closed. A complete list of Hotels Temporarily Closed can be found on VisitRaleigh.com.

Nearly 30 hotel properties in Wake County are still offering “Workday” rates for those looking for a private, quiet place to work remotely during the day. A list of Hotels Offering Workday Rates can be found on VisitRaleigh.com.

There has been a continued decrease in group, business and leisure travel to the area, but hotel occupancy throughout Wake County has slightly trended upward over the last few weeks. According to STR, the week of May 24-30 hotel occupancy was at 34.8% countywide which is down 47.8% compared to the same week last year (2019).

April 2020

Week of May 10-16, 2020

Week of May 17-23, 2020

Week of May 24-30, 2020

Public Events Impact:
Nearly 95 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.

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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