AHLA Data Shows 70 Percent of Hotel Employees Laid Off or Furloughed
May 4, 2020
As much as we’re all hungering for good news right now, the staggering numbers reporting the severity of the COVID-19 crisis for the hotel industry can’t be spun in a positive light.
New data from the American Hotel & Lodging Association shows that 70 percent of hotel employees have been laid off or furloughed, as eight in 10 hotel rooms across the country remain empty. This puts the impact of COVID-19 on the travel industry at nine times worse than 9/11, with forecasted occupancy rates for this year hitting record lows worse than rates from 1993 during the Great Depression.
“The human toll of this public health crisis has been absolutely devastating for the hotel industry…. Our priority is rehiring and retaining our hardworking employees who power our vibrant industry,” said Chip Rogers, president and CEO of AHLA.
He continued, “Hotels were one of the first industries affected by the pandemic and will be one of the last to recover. The CARES Act was an important first step… but we need Congress to make important changes to the program to reflect the current economic reality and help the employees in the industries that have been impacted the most.”
While some properties have remained in operation during the pandemic, they are operating with minimal staffing. AHLA reports that on average, full-service hotels are using 14 employees to keep things running, down from 50 employees before the crisis. Resort hotels (which often operate seasonally based on geographic location) are down to five employees per resort per day, down from about 90 per day in mid-March.
The AHLA report states that $2.4 billion has been lost in weekly wages due to the crisis (citing data from Oxford Economics and Hotel Effectiveness), and nearly 3.9 million total hotel-supported jobs have been lost.
“The hotel industry is at a critical juncture. We need more resources to survive this unprecedented time,” said Rogers. “Additional funding is vital for small business owners across America, including tens of thousands of small business hoteliers, to help them keep their doors open and rehire and retain millions of employees.”
See a fact sheet with stats from the full report here.
Partner Voices
MGM Resorts is committed to fostering an inclusive and diverse culture, not just among employees and guests but also within its supply chain. The company prioritizes procuring goods and services from businesses owned by minorities, women, veterans, people with disabilities, LGBTQ individuals and those facing economic disadvantages. This commitment is integral to MGM Resorts' global procurement strategy.
Through its voluntary supplier diversity program, MGM Resorts actively identifies and connects certified diverse-owned suppliers to opportunities within its supply chain. The company is on track to spend at least 15% of its biddable procurement with diverse-owned businesses by 2025, demonstrating that supplier diversity is not only a social responsibility but also a strategic business imperative.
Supplier diversity isn’t just the right thing to do – it’s good for business. A diverse supply chain allows access to a broader range of perspectives and experience, helping to drive innovation, entrepreneurship and resilience, while strengthening communities. At MGM Resorts, engaging diverse suppliers ensures best-in-class experiences for guests and clients. Supplier diversity ensures a more resilient supply chain while supporting economic development in the communities in which it operates.
The impact of MGM Resorts' supplier diversity initiatives is significant. In 2023, these efforts supported over 3,500 jobs across more than 30 states, contributed over $214 million in income for diverse-owned businesses and generated more than $62 million in tax revenue. The story extends beyond the numbers – it reflects the tangible benefits brought to small and diverse-owned businesses, fostering economic empowerment in their communities.
MGM Resorts also supports the development and business skills of diverse-owned businesses through investment, mentorship and education. Through the MGM Resorts Supplier Diversity Mentorship Program, the company identifies, mentors and develops diverse-owned businesses to fill its future pipeline, while providing businesses with tools and resources to empower and uplift. Since 2017, the program has successfully graduated 105 diverse-owned businesses and is on track to achieve its goal of 150 graduates by 2025.
MGM Resorts’ commitment to supplier diversity not only enhances its business operations but also plays a crucial role in uplifting communities and fostering economic development. This approach reinforces the idea that diversity is a powerful driver of innovation and resilience, benefiting both the company and the wider community.
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