Hotel tax collections down nearly 52% YTD; lost business totals more than $145 million YTD

Raleigh, N.C. (Nov. 10, 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 September as well as the latest hotel performance data for October 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 September 2020 are down ↓ $11.9 million (or 51.9%) over last year.
• Prepared food and beverage tax collections through September 2020 are down ↓ $6 million (or 25.1%) over last year.
• Nearly 300 conventions, meetings and group sporting events cancelled, totaling $145.8 million economic impact.
• 41 conventions, meetings and group sporting events have been rescheduled for a future date, totaling $30.1 million economic impact.
• More than 118 large-scale events and festivals have been canceled or rescheduled.
• Average hotel occupancy rates across Wake County remains around 40-45%.

“Most meetings and conventions, and the majority of business travel, will likely not return before the second quarter of 2021,” said Dennis Edwards, President and CEO of Visit Raleigh. “However, we are optimistic that November numbers will begin to show improvement as we are in full execution of the Visit Raleigh ‘Wish You Were Here’ tourism recovery plan and youth baseball, softball and soccer tournaments are returning across the county this month.”

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 September, hotel lodging tax collections were down nearly 60% compared to 2019, bringing in almost $1.1 million. Prepared food and beverage (PFB) tax collections were also down 18.8% in September compared to 2019, bringing in more than $2.2 million.

Month of Sept. 2020:

Year-to-date (January 1 through September 30), hotel lodging tax collections totaled more than $11 million, down nearly 52% YTD over 2019. Prepared food and beverage (PFB) tax collections totaled more than $18 million, down 25.1% YTD over 2019.

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

Meetings, Conventions and Sporting Events Sector Impact:
Visit Raleigh along with the Greater Raleigh Sports Alliance (GRSA) had booked 299 conventions, meetings and group sporting events throughout Wake County that have been canceled, totaling nearly 370,000 attendees and resulting in over $145.8 million in total lost economic impact.

However, working with local hotels, event venues and competition sites, the organization’s sales teams were able to reschedule 41 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:
According to STR, Wake County has remained above 40% hotel occupancy throughout the month of September. Group travel to the area has remained minimal, and weekly hotel occupancy throughout Wake County has plateaued around 45% throughout October.

Month of Sept. 2020 Overall

Weeks of Oct. 4-31, 2020

Interviews with a Visit Raleigh spokesperson can be arranged via phone, video conference or in person. To arrange an interview, please contact Jessica Holt, Public Relations Manager, at 919.614.2895 or jholt@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:
Jessica Holt, Public Relations Manager
919.614.2895
jholt@visitRaleigh.com

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