US hotel industry up to $22.6 billion

Saturday, 09 Nov, 2006 0

As predicted, the US lodging industry had its best year ever in 2005 with pretax profits of $22.6 billion, up from $16 7 billion the year before, according to AH&LA.

The American Hotel & Lodging Association’s (AH&LA) annual report said the industry’s overall profitability grossed $122.7 billion in total sales compared to $113.7 billion in 2004.

A major reason included the industry’s ability to raise room rates due to increased demand from both leisure and business travelers.

“Other indicators — promotional spending, average occupancy rate and revenue per available room — also point to a stronger lodging industry performance ahead,” said a report by the AH&LA.

Other interesting facts in the report:

In the US, tourism is currently the third largest retail industry, behind automotive and food stores.
Travel and tourism is the nation’s largest services export industry and one of America’s largest employers.
Travel and tourism is the first, second or third largest employers in 30 of the 50 US states.
States last year spent $666.6 million for the development and promotion of the industry.
The state of Utah’s promotional budget increased the most, nearly 300% from $4 to $16 million.
Hawaii spent more than any other state with $69.2 million.
The tourism industry overall includes more than 15 interrelated businesses, ranging from lodging to airlines.
Resident and international travelers in the US spend an average of $1.8 billion a day or $1.2 million a minute.
Tourism generates $654 billion in sales (excluding spending by international travelers on US airlines).
The average room rate in 2005 was $90.88.

Report by David Wilkening

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David

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