US Hotels Forecast to Pay Record-High Wages, Taxes Amid Worker Shortage

US hotels are expected to pay record-high wages and taxes in 2024, as the industry continues to recover from the pandemic. According to the American Hotel & Lodging Association (AHLA), hotels are forecast to contribute nearly $83.4 billion in tax revenue to federal, state, and local governments, with the top 10 states expected to generate the highest hotel tax revenue being California, Florida, Texas, New York, Nevada, Hawaii, Illinois, Pennsylvania, Georgia, and Virginia

In addition to tax revenue, US hotels are also expected to pay out a record total of $123.4 billion in wages, salaries, and compensation to employees in 2024, a notable increase from the $118.0 billion recorded in 2023. The top 10 states projected to lead in hotel wages this year are California, Florida, Texas, New York, Nevada, Illinois, Pennsylvania, Georgia, Virginia, and Massachusetts.

However, the industry is still facing challenges in recruiting new employees, even with approximately 45,000 new hires anticipated in 2024. Despite this, the industry is still grappling with a workforce shortage of about 225,000 jobs compared to pre-pandemic levels in 2019.