No industry has been more affected by the pandemic than hospitality. Leisure and hospitality has lost 3.1 million jobs during the pandemic that have yet to return, representing more than a third of all unemployed persons in the United States, according to the Bureau of Labor Statistics. Even more stark, the unemployment rate in the accommodation sector specifically remains 330% higher than the rest of the economy.
Empty or permanently closed hotels have also had a ripple effect on communities throughout the country, hurting a wide range of businesses that rely on the presence of hotel guests, such as restaurants and retail, hotel supply companies and construction. For every 10 people directly employed on a hotel property, hotels support an additional 26 jobs in the community, from restaurants and retail to hotel supply companies and construction, according to a study by Oxford Economics. With hotels expected to end 2021 down 500,000 jobs, based on the pre-pandemic ratio, an additional 1.3 million hotel-supported jobs are in jeopardy this year without additional support from Congress.
This crisis has been especially devastating in urban areas, hurting minority communities. Urban hotels, which are more reliant on business and group travel and more likely to host larger events, ended January down 66% in room revenue compared to last year. According to recent reports, New York City has seen one-third of its hotel rooms—more than 42,000—wiped out by the COVID-19 pandemic, with nearly 200 hotels closing permanently in the city.