Minnesota’s Hospitality Industry Revenues Dropped $15 Billion
Minneapolis, MN (KROC-AM News) - A new report issued by an organization representing Minnesota's hospitality industry highlights the immense negative economic impact of the COVID-19 pandemic.
The Minnesota Hospitality Association estimates the state's foodservice and other hospitality businesses saw their revenues reduced by more than $15 billion over the past two years, which is the equivalent of almost 250 days worth of revenue. The report also notes those businesses' bills for "rent, mortgage, insurance, utilities, taxes, and other costs continued unabated, leaving many in debt.” At the same time, the hospitality industry’s workforce has shrunk by about 32,000 employees since the start of the pandemic.
According to the association, more than half of Minnesota restaurants and hotels are not expecting their revenues to return to normal levels until next year or later. A survey conducted in late February by Hospitality Minnesota, the Federal Reserve Bank of Minneapolis, and Explore Minnesota found "economic headwinds remain related to lower-than-normal revenue, significant inflation, supply change challenges, and a historic workforce shortage.”
The association's report did include what it termed a "bright spot." It found the Resort and Campground sector has performed better than other hospitality businesses. 96 percent of Minnesota's resorts and campgrounds described their financial health as growing or stable and nearly half were expecting higher than normal revenues over the next several months.