2008 Lodging Industry Profile. All figures are for year-end Figures for 2008 will be available in fall 2009.
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1 2008 Lodging Industry Profile All figures are for year-end Figures for 2008 will be available in fall 2009.
2 2007 At-a-Glance Statistical Figures 48,062 properties* 4,476,191 guestrooms $139.4 billion in sales $65.52 revenue per available room (RevPAR) 63.1% average occupancy rate *Based on properties with 15 or more rooms. In 2007, the lodging industry generated $28 billion in pretax profits, according to Smith Travel Research. Total industry revenue increased in 2007 to $139.4 billion, from $133.4 billion in The Lodging Industry The average room rate was $ in 2007 up from $97.78 in The average room rate was $90.88 in 2005, $86.23 in 2004, $82.52 in 2003, $83.54 in 2002, $88.27 in 2001, $85.89 in 2000, $81.33 in 1999, $78.62 in 1998, and $75.31 in Source: Smith Travel Research THE TOURISM INDUSTRY In the United States, travel and tourism is among the nation s largest services export industries, and one of America s largest employers. In fact, it ranks as one of the top 10 largest industries in 49 states including the District of Columbia. The tourism industry includes a number of interrelated businesses lodging properties, airlines, restaurants, cruise lines, car rental firms, travel agents, and tour operators, among others.
3 Tourism s effects On Our Economy Resident and international travelers in the United States spend an average of $2 billion a day, $84.5 million an hour, $1.4 million a minute, and $23,500 a second. Tourism generates $740 billion in sales (excluding spending by international travelers on U.S. airlines). The tourism industry pays $116 billion in federal, state, and local taxes. Lodging and Overall Tourism Employment The travel and tourism industry pays $178 billion in travel-related wages and salaries and employs 1.4 million hotel property workers. Tourism directly supports more than 7.5 million travel and tourism jobs. Promotional Spending In the fiscal year, U.S. states planned to spend a projected $868.8 million on development and promotion in the travel and tourism industry. Reporting states averaged increases of 20.4% in budgets from the fiscal year. The most notable increases include California, with a 137% increase to $58 million, and Texas, with a 109.7% increase to $63.2 million. California and Texas were also ranked among the top three spenders, with budgets set just below Hawaii s $85.1 million. Hawaii has maintained the highest tourism budget for the past three years. Alaska s state tourism budget experienced the largest decline, down 19% to $10 million. Texas planned to spend the most on domestic advertising, allocating a $36.6 million budget. Of all reporting states, California ($20.5 million) and Florida ($19.6 million) will spend the most on domestic advertising. The total collective domestic advertising and sales promotion budget was $305.4 million. Sources: Travel Industry Association of America, Bureau of Labor Statistics
4 2007 Property/Room Breakdown By Location Properties* Rooms Suburban 16,264 1,609,913 Small Metro/Town 14, ,941 Urban 4, ,272 Interstate 6, ,078 Resort 3, ,254 Airport 2, ,733 By Rate Under $ ,865 $30 $ , ,400 $45 $ , ,263 $60 $85 14,507 1,293,645 Over $85 11,108 1,778,018 By Size Under 75 rooms 27,210 1,159, rooms 15,089 1,595, rooms 4, , rooms 1, ,963 Over 500 rooms ,669 *Based on a total of 48,062 properties. Based on a total of 4,476,191 guestrooms. Source: Smith Travel Research
5 The Typical Lodging Customer 44% traveled for business 56% traveled for leisure The typical business room night stay is by a male (66%), age (51%), employed in a professional or managerial position (43%), earning an average yearly household income of $89,600. Typically, these guests travel alone (55%), make reservations (91%), and pay $119 per room night. The typical leisure room night stay is by two adults (53%), ages (40%), earning an average yearly household income of $78,800. The typical leisure traveler also travels by auto (78%), makes reservations (86%), and pays $109 per room night. 33% of all business travelers spend one night at a hotel, 26% spend two nights, and 41% spend three or more nights. Of leisure travelers staying in a hotel, 42% spend one night, 30% spend two nights, and 28% spend three or more nights. Source: D.K. Shifflet & Associates, Ltd. International Travel* The United States receives a larger share of world international tourism receipts than any other country in the world. In 2007, spending on travel increased 13% to a record $122 billion, including $97 billion spent at destinations in the U.S. and another $26 billion on passenger fares on U.S. carriers. The U.S. share of world tourism receipts was at the top (11.3%), nearly double that of second-ranked Spain (6.8%).
6 In 2007, international 1 travelers to the United States increased 10% over 2006, to a record 56.0 million. Overseas 2 arrivals in 2007 grew 10% to reach 23.9 million. Canadian arrivals increased by 17% to 17.8 million. Mexican arrivals increased by 1% to reach a record 14.3 million. The top 10 countries in terms of U.S. arrivals for 2007 were Canada (17.8 million), Mexico (14.3 million), the United Kingdom (4.5 million), Japan (3.5 million), Germany (1.5 million), France (998,000), South Korea (806,000), Australia (670,000), Brazil (639,000), and Italy (634,000). These 10 countries accounted for 89% of U.S. visitors. Country performance was uniformly positive. All top 10 countries except Japan had visitor increases in 2007, and four countries reached record visitation levels (Mexico, South Korea, Australia, and Italy). The impact of international travelers on the hotel industry is considerable; international visitors accounted for 22% of all lodging room-nights in million overseas travelers and another nine million Canadians stayed in a hotel/motel during their U.S. visit. The average length of stay for overseas visitors was 7.9 nights, with 1.6 people in the travel party. The main purposes of trips for overseas travelers who stayed in hotels and motels were leisure/recreation/ holiday (53%), and business/convention (35%). These mobile travelers visited 1.6 states while in the country and traveled by taxis and limousines (49%), rented cars (33%), and air (27%). The outlook for the remainder of 2008 and beyond is positive due to continued strong GDP growth and favorable exchange rates in our top visitor markets. Through June 2008, arrivals are up 11%. 1 International includes Canada, Mexico, and overseas. 2 Overseas excludes Canada and Mexico. Source: U.S. Department of Commerce, International Trade Administration, Office of Travel & Tourism Industries, U.S. Department of Commerce, Bureau of Economic Analysis
7 2009 Calendar of Events January 26 28, 2009 The Americas Lodging Investment Summit Hilton San Diego Bayfront San Diego, California March 16 17, 2009 AH&LA Legislative Action Summit The Mandarin Oriental Washington, D.C. June 23 24, 2009 AH&LA Summer Summit Hilton Chicago Chicago, Illinois August 23 26, 2009 AH&LEF Golf Classic Pinehurst Resort Village of Pinehurst, North Carolina November 6 10, 2009 AH&LA Fall Conference (Held in conjunction with the International Hotel/Motel & Restaurant Show) Jacob K. Javits Convention Center New York, New York For more information, please contact the AH&LA conventions & events department at (202) or conventions@ahla.com.
8 2008 AH&LA Officers Chairman of the Board Thomas J. Corcoran, Jr., FelCor Lodging Trust Incorporated Vice Chairman Joe Martin, CHA, Stillwater Hospitality, LLC Secretary/Treasurer David Kong, Best Western International Immediate Past Chairman Robert L. Steele, III, Grand Hyatt Tampa Bay President and CEO Joseph A. McInerney, CHA, AH&LA Serving the hospitality industry for nearly a century, AH&LA is the sole national association representing all sectors and stakeholders in the lodging industry, including individual hotel property members, hotel companies, student and faculty members, and industry suppliers. Headquartered in Washington, D.C., AH&LA provides members with national advocacy on Capitol Hill, public relations and image management, education, research and information, and other value-added services to provide bottom-line savings and ensure a positive business climate for the lodging industry. Partner state associations provide local representation and additional cost-saving benefits to members. Information contained in this pamphlet is based on data provided by D.K. Shifflet & Associates, Ltd.; Smith Travel Research; the Travel Industry Association of America; and the U.S. Department of Commerce, International Trade Administration, Office of Travel and Tourism Industries. The 2008 Lodging Industry Profile was prepared by: American Hotel & Lodging Association Marketing & Communications Department 1201 New York Avenue, N.W., Suite 600 Washington, D.C Tel.: (202) Fax: (202) media@ahla.com Web:
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