As hospitality industry continues rebound, Illinois ranks high in the amount of money spent by hotel guests

[June 09, 2023]  By Kevin Bessler | The Center Square

(The Center Square) – A new study shows the hotel industry is a driving force for the Illinois economy.

The report by the American Hotel and Lodging Association and Oxford Economics showed Illinois ranked seventh in the nation in 2022 in the money spent by hotel guests, at $22.9 billion. That includes lodging, transportation, retail, food and beverage, and other expenses.  

“With the leisure travel that's taken place just over the last two years, the occupancy numbers in hotels are back to where they were in 2019, and that's even with a loss of a significant amount of business travel,” AHLA President and CEO Chip Rogers told The Center Square.

The only states where hotel guests spent more were California, Florida, New York, Nevada, Texas and Hawaii. The report shows that hotel guests nationwide spent a total of more than $691 billion in 2022.

Rogers said the spending generates enormous federal, state and local tax revenue.

“And what's interesting, the economic generator of a hotel, for every $100 that someone spends on a hotel, they spend $220 outside of the hotel in that local community, whether that's restaurants, entertainment or sporting events,” Rogers said.

The report shows that Illinois hotels generated nearly $622 million in tax revenue, the eighth highest amount in the country.

The workforce has yet to return to pre-pandemic levels. According to the U.S. Bureau of Labor Statistics, as of April, hotel employment was still down about 250,000 jobs compared to February 2020.

Kevin Bessler reports on statewide issues in Illinois for the Center Square. He has over 30 years of experience in radio news reporting throughout the Midwest.