AHLA Finds Hotel-Generated State and Local Tax Revenue Will Reach National Heights

WASHINGTON—Hotel-generated state and local tax revenue will reach new heights nationally ($46.71 billion) and in states across the nation this year, according to state-by-state projections released today by the American Hotel & Lodging Association (AHLA) and Oxford Economics.

Average U.S. hotel occupancy is projected to reach 63.8 percent in 2023—just shy of 2019’s level of 65.9 percent. Staffing is expected to remain a challenge for many U.S. hotels in 2023, as the industry continues to grow its workforce back to pre-pandemic levels.

“Hotels are making significant strides toward recovery, supporting millions of good-paying jobs and generating billions in state and local tax revenue in communities across the nation,” said AHLA President and CEO Chip Rogers. “To continue growing, we need to hire more people. Fortunately, there’s never been a better time to be a hotel employee, with wages, benefits, flexibility, and upward mobility better than ever before.”

The 10 states projected to have the highest gross increase in hotel-generated state and local tax revenue from 2019 to 2023 are:

1. Florida
2. California
3. Texas
4. Nevada
5. New York
6. Michigan
7. Massachusetts
8. New Jersey
9. Illinois
10. Maryland

Hotels across the country are on a hiring spree because they’re looking to fill many of the jobs lost during the pandemic. As of December 2022, national average hotel wages were at historic highs of over $23/hour and hotel benefits and flexibility are better than ever. Nearly 100,000 hotel jobs are currently open across the nation, according to Indeed.

To help hotels fill open jobs and raise awareness of the hotel industry’s 200+ career pathways, the AHLA Foundation’s “A Place to Stay” multi-channel advertising campaign is now active in 14 cities, including Atlanta, Baltimore, Chicago, Dallas, Denver, Houston, Los Angeles, Miami, Nashville, New York, Orlando, Phoenix, San Diego, and Tampa.

Additionally, AHLA affiliate “Hospitality is Working” recently launched the Workforce & Immigration Initiative. The effort is aimed at urging Congress to address workforce shortages with bipartisan solutions to incorporate more immigrants into the U.S. economy.

On average nationally, every direct hotel job supports an additional 2.6 jobs in the community, according to the projections. The 10 states expected to have the highest direct and hotel-supported employment levels in 2023 are:

1. California
2. Florida
3. Nevada
4. Texas
5. New York
6. Pennsylvania
7. Georgia
8. Illinois
9. Arizona
10. North Carolina

The 10 states projected to have the highest hotel occupancy in 2023 are:

1. Hawaii
2. California
3. Alaska
4. Florida
5. District of Columbia
6. Arizona
7. New York
8. Washington
9. Colorado
10. Massachusetts