Tuesday, April 9, 2024
In 2024, U.S. hotels are set to witness a record $758B in guest spending, reveals the American Hotel & Lodging Association. Unprecedented growth forecasted.
This year, the hospitality industry in the United States is on track to set new records in the generation of tax revenues at federal, state, and local levels, as well as in the payment of unprecedented amounts in wages, salaries, and additional benefits. This forecast is supported by recent data published by the American Hotel & Lodging Association.
According to these forecasts, the hotel sector is expected to contribute almost $83.4 billion in taxes in 2024. The top ten states where the highest tax contributions from hotels are anticipated include:
HOTEL-GENERATED FEDERAL, STATE & LOCAL TAX REVENUE
| STATE | FEDERAL TAXES | STATE & LOCAL TAXES | TOTAL TAXES |
|---|---|---|---|
| NATIONAL | $29,014,621,432 | $54,361,761,581 | $83,376,383,013 |
| CALIFORNIA | $3,609,369,291 | $5,169,357,910 | $8,778,727,201 |
| NEW YORK | $2,391,223,604 | $5,904,852,365 | $8,296,075,969 |
| NEVADA | $3,677,379,698 | $4,403,346,558 | $8,080,726,256 |
| FLORIDA | $2,967,217,950 | $4,466,159,021 | $7,433,376,971 |
| TEXAS | $1,460,334,083 | $2,850,568,621 | $4,310,902,704 |
| ILLINOIS | $711,268,600 | $1,842,701,952 | $2,553,970,553 |
| MICHIGAN | $700,892,164 | $1,655,872,647 | $2,356,764,811 |
| HAWAII | $819,765,028 | $1,514,818,515 | $2,334,583,543 |
| MASSACHUSETTS | $634,394,972 | $1,675,835,450 | $2,310,230,423 |
| PENNSYLVANIA | $606,011,617 | $1,400,664,376 | $2,006,675,993 |
Additionally, the hotel industry is set to achieve a new milestone in employee compensation, with projections indicating a total payout of $123.4 billion in wages, salaries, and benefits in 2024, an increase from $118.0 billion the previous year. The ten states expected to lead in hotel employee compensation in 2024 are:
HOTEL WAGES, SALARIES & COMPENSATION
| STATE | 2019 | 2023 | 2024 PROJECTED |
|---|---|---|---|
| NATIONAL | $102,282,847,113 | $118,012,125,238 | $123,444,000,287 |
| CALIFORNIA | $13,391,460,887 | $14,714,703,166 | $15,314,828,431 |
| NEVADA | $11,660,438,484 | $12,252,365,201 | $14,378,875,871 |
| FLORIDA | $9,321,399,806 | $11,547,180,430 | $11,841,053,772 |
| NEW YORK | $8,402,289,558 | $9,496,517,264 | $10,199,044,716 |
| TEXAS | $5,165,476,150 | $6,374,384,164 | $6,473,672,675 |
| HAWAII | $3,059,098,194 | $3,391,590,287 | $3,666,810,918 |
| MICHIGAN | $2,371,681,418 | $2,903,242,886 | $3,045,893,806 |
| ILLINOIS | $2,863,172,867 | $2,961,473,253 | $3,021,318,152 |
| NEW JERSEY | $2,511,983,820 | $2,878,012,560 | $2,882,415,452 |
| ARIZONA | $2,203,979,562 | $2,779,872,932 | $2,872,362,508 |
Guest expenditures on accommodations, travel, dining, shopping, and other activities are predicted to soar to $758.6 billion in 2024. This represents a nearly 5% growth from 2023 and a significant 24% increase from the figures recorded in 2019. The states forecasted to witness the highest levels of guest spending in 2024 include:
ECONOMY-WIDE HOTEL GUEST SPENDING
| STATE | 2019 | 2023 | 2024 PROJECTED |
|---|---|---|---|
| NATIONAL | $612,855,900,977 | $723,399,162,639 | $758,610,565,136 |
| CALIFORNIA | $66,124,759,393 | $80,616,729,730 | $87,839,244,828 |
| FLORIDA | $56,571,443,318 | $68,102,815,710 | $70,335,304,844 |
| NEW YORK | $57,064,656,001 | $63,202,161,687 | $65,766,325,765 |
| NEVADA | $47,423,152,963 | $58,161,658,951 | $59,461,646,284 |
| TEXAS | $42,513,269,874 | $49,465,865,813 | $52,556,227,208 |
| HAWAII | $18,731,861,822 | $23,807,493,173 | $25,000,655,700 |
| ILLINOIS | $21,986,186,713 | $24,093,245,649 | $24,837,627,967 |
| GEORGIA | $19,527,925,320 | $23,676,351,964 | $24,493,835,012 |
| MICHIGAN | $15,436,096,799 | $19,124,022,155 | $20,019,522,020 |
| COLORADO | $14,397,229,045 | $18,783,280,425 | $19,847,404,882 |
Despite the hotel industry’s plans to onboard approximately 45,000 new employees this year, there remains a shortfall of about 225,000 positions compared to the workforce size of nearly 2.37 million in 2019.
The states anticipated to have the largest hotel workforce in 2024 are:
DIRECT HOTEL EMPLOYMENT
| STATE | 2019 | PROJECTED 2024 | 2024 vs. 2019 |
|---|---|---|---|
| NATIONAL | 2,366,919 | 2,141,157 | -9.5% |
| CALIFORNIA | 289,042 | 250,876 | -13.2% |
| FLORIDA | 208,863 | 195,483 | -6.4% |
| NEVADA | 201,722 | 180,303 | -10.6% |
| TEXAS | 148,641 | 139,578 | -6.1% |
| NEW YORK | 113,791 | 105,393 | -7.4% |
| PENNSYLVANIA | 65,173 | 56,499 | -13.3% |
| NORTH CAROLINA | 57,071 | 54,868 | -3.9% |
| ILLINOIS | 59,720 | 51,430 | -13.9% |
| MICHIGAN | 57,919 | 51,095 | -11.8% |
| ARIZONA | 59,099 | 50,405 | -14.7% |
The current labor shortage nationwide poses challenges for the hotel industry in filling positions, despite offering competitive wages and enhanced benefits. As of February 2024, the national average wage in the hotel sector was $23.84 an hour, as reported by the Bureau of Labor Statistics.
With 8.8 million job vacancies across all sectors in the United States and only 6.5 million job seekers available as of February, according to the Bureau of Labor Statistics, the hotel industry alone accounts for over 80,000 of these open positions, based on data from Indeed.
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