The hotel and the hospitality industry will not make a full recovery until 2024. It is devastating by the COVID-19 pandemic.
The American Hotel and Lodging Association’s State of the Hotel Industry 2021 report is finding that more than 670,000 hotel industry operation jobs and nearly 4 million hospitality jobs lost in 2020. This is due to the virus pandemic.
Hotel Industry Woes in 2020 and Going Forward
Only 200,000 new jobs are projecting over 2020. This results in a loss of 478,245 employees from pre-pandemic levels. The sector is reportedly expected to begin its rebound this year.
At least 2 in 10 employees who were working before the COVID-19 pandemic have still not returned to work. Moreover, many others are not working full time yet.
According to the Bureau of Labor Statistics, the unemployment rate in the accommodation sector is 18.9% as of December.
Jobs Increased will go up Only Slightly
There will be an increase slightly next year with a number of jobs. However, it will remain at 184,092 which is less than 2019. The industry will not reach pre-pandemic job levels until at 2023 overall.
COVID-19 Literally Wipes out Present and Potential Future Job Growth Heavily
The COVID-19 pandemic has got rid of more than 10 years of job growth in the accommodations sector, basing on what the hotel association says.
In April, hotel occupancy average around 66% in 2019. But fell to a historic low of 24.5%. This year, occupancy averages 52.5% which is an increase of 8.5% from 2020. The hotel room profits dropped last year by nearly half to $84.6 billion additionally. It is expecting to increase by just $25.9 billion this year. It is still 34% below pre-pandemic levels.
Business travel has substantially declining and is forecast to be going down 85% compared to 2019. This includes more than half of Americans, 56%. According to a report, they expect to travel for leisure this year. Nearly half of consumers see that as the key to travel with vaccines given out.