Hotel occupancy remains under 50% and tax collections down $13.5 million YTD

Raleigh, N.C. (Sept. 9, 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 July as well as the latest hotel performance data for August 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 July 2020 are down ↓ $8.8 million (or 50.1%) over last year.
• Prepared food and beverage tax collections through July 2020 are down ↓ $4.7 million (or 25.7%) over last year.
• 258 conventions, meetings and group sporting events cancelled, totaling $124.5 million economic impact.
• 35 conventions, meetings and group sporting events were rescheduled for a future date, totaling $20.5 million economic impact.
• At least 117 large-scale events and festivals have been canceled or rescheduled.
• Nearly all of Wake County’s 160+ hotels are back open, only four remain closed (mostly B&Bs).
• Average hotel occupancy rates are hovering between 40-45% countywide.

“We’re grateful that the state of North Carolina has allowed museums to open under Phase 2.5 as well as the increase in mass gathering sizes,” said Dennis Edwards, President and CEO, of Greater Raleigh Convention and Visitors Bureau (Visit Raleigh). “We have seen hotel occupancy flatten out recently, so this will hopefully give the tourism industry a little lift at a much-needed time as well as improve the quality of life for our residents.”

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 July, hotel lodging tax collections were down 59.2% compared to 2019, bringing in just over $1 million. Prepared food and beverage (PFB) tax collections were also down 25.4% in July compared to 2019, bringing in more than $1.9 million.

Month of July 2020:

Year-to-date (January 1 through July 31), hotel lodging tax collections totaled more than $8.8 million, down 50% YTD over 2019. Prepared food and beverage (PFB) tax collections totaled more than $13.7 million, down 25.7% YTD over 2019.

Year to Date (Jan. through July 2020):

Meetings, Conventions and Sporting Events Sector Impact:
Visit Raleigh and GRSA had booked 258 conventions, meetings and group sporting events throughout Wake County that have been canceled, totaling more than 307,000 attendees and resulting in over $124.5 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 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 117 large scale events and festivals have been canceled or rescheduled. The City of Raleigh has also canceled all special events and gatherings of 25 or more people outdoors through December 31^st.

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 2.5 began Friday across the state, nearly 100% of Wake County hotels have reopened. Only four 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.

According to STR, Wake County has remained above 40% hotel occupancy throughout the month of July. Group travel to the area has remained minimal, but weekly hotel occupancy throughout Wake County slightly dipped during the month of August.

Month of July 2020 Overall

Weeks of Aug 2-29, 2020

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

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