MASSACHUSETTS OFFICE OF TRAVEL & TOURISM TONY DAGOSTINO, - - PowerPoint PPT Presentation

MASSACHUSETTS OFFICE OF TRAVEL & TOURISM

TONY D’AGOSTINO, RESEARCH DIRECTOR NOVEMBER 5, 2020

1

ACT&T Research Presentation

• Single event: Check out and pay for overnight stay
• Smith

Travel Research: Receive from individual hotels

• Rooms Available, Rooms sold, Room Revenue
• Produce monthly, weekly reports delivered to clients

following month or week

• Massachusetts Department of Revenue: Receive tax payments/process

abatements

• Produce monthly NET Occupancy

Tax collections (BLUE BOOK)

• Last posted June 2020

MA Lodging Monthly Rooms Sold: CYs 2020 & 2019 through September

1,339.6 1,358.9 807.8 380.2 502.7 618.3 901.1 1,115.6 994.5 1,243.4 1,297.5 1,580.6 1,734.2 1,985.3 2,086.1 2,207.6 2,217.6 2,038.6 0.0 500.0 1,000.0 1,500.0 2,000.0 2,500.0 Jan Feb Mar Aprl May June July August Sept Sold 2020 Sold 2019

CY 2020

Demand for Rooms was nearly 8% higher January 2020 compared to January 2019 September 2020 was 51% lower than September 2019 April 2020 was 79% lower than April 2019

CY 2019 Thousands - Room Nights

Source: Smith Travel Research

MA Lodging Monthly Room Revenue: CYs 2020 & 2019 through September

184.4 192 108.4 33.5 44.8 75.1 156.5 206.3 146.9 170.8 182.5 254.1 326.9 409.4 448.7 481.3 479.9 431.1 100 200 300 400 500 600 Jan Feb Mar Aprl May June July August Sept RmRv20 RmRv19

September 2020 65.9% lower than September 2019. April 2020 was 90% lower than April 2019

Source: Smith Travel Research

Millions USD

January 2020 was 8% higher than January 2019

MA State Level Lodging Room Revenue: CYs 2020 & 2019 through June

16.15 13.68 12.55 7.262 1.784 4.68 13.29 11.71 12.692 18.46 23.32 28.572 5 10 15 20 25 30 35 Jan Feb Mar Aprl May June RmRv20 RmRv19

June 2020 84% lower than June 2019 April 2020 60% lower than April 2019

Source: MA DOR

Millions USD

Jan 2020 22% higher than Jan 2019 Feb 2020 17% higher than Feb 2019

MA Local Level Lodging Room Revenue: CYs 2020 & 2019 through June

12.174 13.108 10.382 6.132 1.585 4.162 10.839 9.409 10.119 14.547 18.412 22.839 5 10 15 20 25 Jan Feb Mar Aprl May June RmRv20 RmRv19

June 2020 82% lower than June 2019 April 2020 58% lower than April 2019

Source: MA DOR

Millions USD

Jan 2020 12% higher than Jan 2019 Feb 39% higher than Feb 2019

Massachusetts Lodging & Tax Collection Results: CYs 2020 v. 2019

• The Lodging Industry in Massachusetts started off CY 2020 with substantial gains
• Jan/Feb 2020 both Rooms Sold and Room Revenue increased 8%

Yr/Yr

• Rooms Sold down 80% both April/May 2020

Yr/Yr

• During the summer, the MA lodging industry

Yr/Yr decreases began to improve

• However, September 2020, Rooms Sold and Room Revenue decreased 51% and 66%
• The much sharper decline in revenue was caused by 30% decline in room rate

Massachusetts Lodging & Tax Collection Results: CYs 2020 v. 2019 Continued

• Most recent STR reports reflect a leveling of the previously positive trends
• MA DOR occupancy tax collections reports lag STR - content and publication
• Jan/Feb 2020 saw much higher increase in taxes then STR room revenue
• Caused by: Hotel 2019 Q4 room revenue growth was double digit, Short

T erm Rentals, Work Loads

• There is nearly a two month lag between actual hotel stay and taxes collected

reporting