Hospitality industry losses cost Arizona $624 million in state, local tax revenue

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Seven weeks of COVID-19 restrictions have caused Arizona to lose $624 million in state and local revenues from the hospitality industry, according to an analysis of data from the Bureau of Labor Statistics (BLS).

The steep drop in tourism and travel spending led to a loss of guest spending in the state amounting to $1.9 billion. Losses to the jurisdiction’s gross domestic product amounted to $2.3 billion, while business sales took a hit of $4.2 billion.

About 44 percent of hotel workers in each state are expected to lose their jobs due to plummeting tourism during the coronavirus pandemic, according to the American Hotel & Lodging Association. The total number of hospitality jobs in Arizona make up 5.6 percent of the workforce, the BLS numbers show.

Sales tax revenues in March dropped 8.7 percent, the U.S. Census Bureau reported, as establishments such as restaurants, bars and merchandise stores saw sales nosedive due to social-distancing restrictions and stay-at-home orders. That’s the biggest decline in U.S. history.

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How the COVID-19 Lockdown Affected the Hospitality Industry

StateBusiness SalesGDPState/Local Tax RevenueGuest SpendingHospitality Jobs as % of WorkforceHospitality Jobs Rank as % of Workforce
Nevada$14,098,767,812$7,588,454,440$2,073,348,208$6,344,445,51625.4%1
Hawaii$3,164,531,315$1,703,262,443$465,372,252$1,424,039,09221.0%2
Vermont$901,913,650$485,441,759$132,634,360$405,861,14310.9%3
Wyoming$802,956,008$432,179,263$118,081,766$361,330,20410.6%4
District of Columbia$1,160,165,406$624,441,968$170,612,560$522,074,4339.9%5
Alaska$703,342,535$378,563,776$103,432,726$316,504,1419.7%6
Montana$921,880,067$496,188,389$135,570,598$414,846,0307.2%7
Florida$14,678,449,729$7,900,459,707$2,158,595,548$6,605,302,3787.2%8
South Dakota$718,718,133$386,839,466$105,693,843$323,423,1606.8%9
Mississippi$2,456,306,481$1,322,070,841$361,221,541$1,105,337,9176.3%10
Maine$860,304,804$463,046,409$126,515,412$387,137,1626.1%11
Oklahoma$2,464,176,456$1,326,306,740$362,378,891$1,108,879,4055.7%12
Louisiana$2,754,272,460$1,482,446,648$405,040,068$1,239,422,6075.7%13
New Mexico$1,500,979,023$807,879,886$220,732,209$675,440,5605.6%14
Arizona$4,242,499,209$2,283,462,810$623,896,943$1,909,124,6445.6%15
New York$8,226,819,534$4,427,964,631$1,209,826,402$3,702,068,7905.5%16
Colorado$3,732,918,361$2,009,188,412$548,958,583$1,679,813,2635.5%17
Oregon$2,213,138,844$1,191,189,437$325,461,595$995,912,4805.4%18
South Carolina$2,483,049,821$1,336,465,051$365,154,385$1,117,372,4195.4%19
North Dakota$561,828,734$302,396,054$82,621,873$252,822,9305.4%20
Utah$1,677,397,618$902,834,600$246,676,120$754,828,9285.3%21
California$20,776,878,385$11,182,849,248$3,055,423,292$9,349,595,2735.2%22
Georgia$4,007,857,377$2,157,170,294$589,390,791$1,803,535,8205.0%23
Washington$3,068,124,128$1,651,372,692$451,194,725$1,380,655,8574.8%24
Tennessee$2,938,561,029$1,581,637,260$432,141,328$1,322,352,4634.8%25
New Hampshire$640,601,349$344,794,256$94,206,081$288,270,6074.7%26
Texas$10,611,130,323$5,711,284,850$1,560,460,342$4,775,008,6454.6%27
Idaho$800,769,904$431,002,625$117,760,280$360,346,4574.6%28
Illinois$4,326,445,604$2,328,645,722$636,242,001$1,946,900,5224.6%29
Kentucky$1,221,813,539$657,623,170$179,678,462$549,816,0934.4%30
Virginia$3,817,083,366$2,054,488,988$561,335,789$1,717,687,5154.3%31
New Jersey$3,824,953,341$2,058,724,886$562,493,138$1,721,229,0034.3%32
Massachusetts$2,955,758,381$1,590,893,481$434,670,350$1,330,091,2714.3%33
North Carolina$3,773,871,377$2,031,230,770$554,981,085$1,698,242,1204.2%34
Minnesota$2,517,663,134$1,355,095,158$370,244,579$1,132,948,4104.2%35
Nebraska$704,435,587$379,152,095$103,593,469$316,996,0144.1%36
Connecticut$1,898,194,124$1,021,675,073$279,146,195$854,187,3564.0%37
Missouri$2,851,991,310$1,535,042,381$419,410,487$1,283,396,0894.0%38
Michigan$3,950,362,842$2,126,224,706$580,935,712$1,777,663,2793.9%39
West Virginia$926,252,275$498,541,666$136,213,570$416,813,5243.8%40
Wisconsin$3,008,880,709$1,619,485,793$442,482,457$1,353,996,3193.8%41
Iowa$1,647,302,252$886,636,212$242,250,331$741,286,0143.7%42
Alabama$1,498,720,049$806,664,026$220,400,007$674,424,0223.7%43
Pennsylvania$4,753,245,980$2,558,364,748$699,006,762$2,138,960,6913.6%44
Arkansas$916,852,028$493,482,121$134,831,181$412,583,4123.5%45
Rhode Island$373,750,918$201,165,935$54,963,370$168,187,9133.5%46
Kansas$973,836,473$524,153,160$143,211,246$438,226,4133.5%47
Ohio$3,091,879,791$1,664,158,829$454,688,205$1,391,345,9063.3%48
Indiana$1,820,223,081$979,708,305$267,679,865$819,100,3863.2%49
Maryland$2,258,974,158$1,215,859,620$332,202,082$1,016,538,3713.2%50
Delaware$319,171,188$171,789,198$46,936,939$143,627,0343.0%51
TOTALS$166,600,000,000$89,670,000,000$24,500,000,000$74,970,000,0005.1%--
Source: U.S. Bureau of Labor Statistics

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