From the oilfields of the Permian Basin to the Port of Galveston, the Texas economy is showing signs of recovery as Gov. Greg Abbott relaxes mandates, yet analysts with the Texas Recovery Alliance indicate work remains to be done.

Galveston is facing a slow recovery due to the hits delivered to the travel and cruise industry due to the COVID-19 pandemic. The Texas Recovery Alliance reports 875,000 people a year take cruises out of Galveston and an estimated 1.5 million passengers and crew visited in 2018. The impact is approximately $1.5 billion in direct spending within the state along with 26,241 jobs and $1.75 billion in income, both of which have suffered.

Royal Caribbean recently announced work will begin on its new cruise terminal in April 2021. The company previously asked the Port of Galveston in March to delay construction on the terminal. Disney also recently announced it was on track to begin its cruises again, Inside the Magic reported.

By itself, Texas receives 6.3% of the cruise industry’s national direct expenditures, 6.2% of the total employment impact and 7.6% of the income impact. 

Vacations to Go in Houston laid off 650 of its 900 employees due to COVID-19 and subsequent shutdown.

While the Texas Leading Index shows improvement to 109 in July, which is slow growth over the previous month, it is far below the 127 posted for February, the Texas Recovery Alliance reported. It also reported that jobs have improved but would provide a better outlook should the shutdown be ended. Jobs will need to be created with number of bankruptcies filed within the state. Texas leads the nation in Chapter 11 filings with 10,661 since last year and more are expected.

Millions have been lost with cancellations of live events such as the Houston Livestock Show and Rodeo, South by Southwest, the Texas State Fair, summer concerts and live sporting events. Among the connected industries sharing the brunt of the cancellations are hotels. The Texas Recovery Alliance has reported 90% of hotel revenues have dropped while on pace to lose $400 million in revenue this year. Many hotels have lost 90% of their workforce, compared to 70% of the nationwide average.