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Thread: Economic impact of a hotel in a small town or rural community

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    Super Moderator luckless pedestrian's avatar
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    Economic impact of a hotel in a small town or rural community

    Has anyone done, or had done, or seen an economic impact study of a hotel going into a small tow or rural area?

    My town is 5,000 in winter and 20,000 in the summer - but the increase in population is camps, campsites (RV mostly) and maybe 100 hotel rooms in under utilized independently owned hotels.

    We had a feasibility study to bring a hotel to the town and the result was we could recruit a 75 room hotel - but we need to peddle this to the people of the town and we wanted an indicator of economic impact from this use

    thanks for any help you can provide!

  2. #2
    Cyburbian dvdneal's avatar
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    Quote Originally posted by luckless pedestrian View post
    Has anyone done, or had done, or seen an economic impact study of a hotel going into a small tow or rural area?

    My town is 5,000 in winter and 20,000 in the summer - but the increase in population is camps, campsites (RV mostly) and maybe 100 hotel rooms in under utilized independently owned hotels.

    We had a feasibility study to bring a hotel to the town and the result was we could recruit a 75 room hotel - but we need to peddle this to the people of the town and we wanted an indicator of economic impact from this use

    thanks for any help you can provide!
    I don't have anything specific, but you might want to look around Las Vegas. They have a lot of metrics on hotels somewhere. Then again the big city aspect might not work out.
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    Cyburbian Cardinal's avatar
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    I did one for a hotel in Pennsylvania, as part of a much larger study of the impacts of a proposed commercial development project. This may give you a quick and dirty means of assessing it. From the summary:

    Hotel
    In 2007, according to the Pennsylvania Department of Tourism, the hotel industry in Pennsylvania recorded a revenue per available room (RevPAR) of $74. Assuming that the proposed 105-room hotel achieves this rate, and given a total of 38,325 room-nights, the property may be projected to have annual sales of $2,836,000. Three-quarters of all hotels employed fewer than 20 workers, and 55 percent employed fewer than 10 workers in 2007. The proposed hotel is likely to have about 15 employees. Average hotel employee earnings were $12.92 per hour in September of 2008, and the typical employee worked 31.3 hours. About 40 percent of the workforce is employed part-time. One in five hotel workers is under 25 years old. Data on 2007 wages for the largest employment categories in the lodging industry is provided below.

    Wages for the Largest Categories of Employment in the Lodging Industry

    Job Title Total Employment Mean Hourly Wage Mean Annual Wage
    Maids and housekeeping cleaners 428,530 $9.04 $18,810
    Hotel, motel, and resort desk clerks 211,720 $9.62 $20,020
    Waiters and waitresses 137,030 $10.49 $21,820
    First line supervisors / managers of housekeeping and janitorial workers 30,180 $14.51 $30,180
    Lodging managers 29,080 $24.16 $50,250
    Source: US Bureau of Labor statistics
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