Hotel occupancy sees slight uptick after record-low hospitality industry tax collections in March

Raleigh, N.C. (May 13, 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.

“The March tax collection data shows just how impactful COVID-19 has been on the tourism sector across Wake County,” said Dennis Edwards, President and CEO, of Greater Raleigh Convention and Visitors Bureau (Visit Raleigh).

“The last week of April brought some much-needed optimism with the first increase in occupancy countywide since February. We hope this trend will continue, but know it will be a very slow, gradual road to recovery.”

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 decreased visitation due to COVID-19, hotel lodging tax collections were down 64.3% in March compared to 2019, bringing in $979,235. And as a result of decreased visitation and the closing of in-room dining at restaurants and bars, prepared food and beverage (PFB) tax collections were down 39.0% in March compared to 2019, bringing in $1.7 million. This marks the lowest collections in the month of March since 2011.

Year-to-date through March 31, hotel lodging tax collections totaled more than $5.2 million, down over 25% YTD over 2019. Prepared food and beverage (PFB) tax collections totaled more than $6.7 million, up 1.7% YTD over 2019. Record-breaking PFB tax collections in January helped those collections stay up YTD, even with the lowest March collections on record since 2011.

However, working with local hotels, event venues and competition sites, the organization’s sales teams have also been able to reschedule 22 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:
20 of the more than 160 hotel properties in Wake County have now temporarily closed. A complete list of Hotels Temporarily Closed can be found on VisitRaleigh.com.

Nearly 30 hotel properties in Wake County are now 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.

While there has been a continued decrease in group, business and leisure travel, hotel occupancy throughout Wake County took a slight uptick over the past few weeks. According to STR, the week of May 3-9 hotel occupancy was at 31.6% countywide which is down 62.6% compared to the same week last year (2019).

Week of April 12-18, 2020

Week of April 19-25, 2020

Week of April 26-May 2, 2020

Week of May 3-9, 2020

Restaurant Sector Impact:
To date, all 1,300+ restaurants in Wake County have now been closed for more than two months. That said, many restaurants are doing takeout and delivery options as well as selling gift cards online to generate some revenue during these challenging times. A list of ways to support local hospitality businesses by shopping online can be found on VisitRaleigh.com.

Public Events Impact:
Nearly 90 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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