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Illinois' hospitality industry took a hit in 2020. Hotel and
lodging saw their revenue dip by 44%, and the restaurant
industry saw a 45% dip.
Mike Jacobson of the Illinois Hotel and Lodging Association said
hotels are paying extra for the things they need.
"All the costs associated with staying in a hotel have gone up,"
Jacobson said. "Labor, cost of supplies, electricity, like all
Americans are experiencing, the price of everything has gone
up."
Sam Toia, president of the Illinois Restaurant Association, said
restaurants are also having a difficult time adjusting to
inflation.
"With inflation being double digits, we are seeing beef, pork,
poultry, all up double digits from a year ago," Toia said.
"Restaurants can not raise their prices as quick as inflation is
going up."
Jacobson said that overall the hotel and lodging industry has
started to see an increase in visitors compared to the past two
years, but inflation is changing how much visitors will have to
pay.
"Our average daily rates right now are over $300 a night for the
first time since the pandemic," Jacobson said. "So that's really
where you are starting to see the impact of inflation."
Toia said that while their sales are up since the pandemic,
inflation is hurting their profits.
"So obviously we are getting back to normalcy but a labor
shortage and inflation are really hurting the industry right
now," said Toia. "We are starting to see our sales come back to
2019 levels, but we are not seeing that bottom line."
The state's budget that begins July 1 sets aside $75 million in
federal tax funds for a hotel jobs recovery program and an
additional $50 million for a restaurant employment and
stabilization grant program.
Andrew Hensel has years of experience as a reporter
and pre-game host for the Joliet Slammers, and as a producer for the
Windy City Bulls. A graduate of Iowa Wesleyan University and
Illinois Media School, Andrew lives in the south suburbs of Chicago. |
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