PROVIDENCE – A new report by the R.I. Hospitality Association and a group of Salve Regina University undergraduates shows hospitality and tourism spending in 2022 trailed 2019 levels by $550 million.
RIHA partnered with Salve Regina’s ECN-307 Intro to Econometrics class in what they called a “rigorous” analysis of Rhode Island’s tourism sector, adjusting the numbers up 18% to account for inflation and "industry-specific conditions" since 2019.
According to the study, compiled under the guidance of Samuel Sacco, Salve Regina University senior lecturer of Business and Economics; Stacey Carter, Strategic Partnership Officer; and Dr. Melissa Varao, chairwoman of the Department of Business and Economics, Rhode Island's hospitality and tourism spending in 2022 reached 93% of pre-COVID levels.
In a Wednesday press release, Sacco said the study reflected changes in industry business models and economic conditions, and praised the students' "diligence, teamwork, intellectual curiosity, and a sense of ownership throughout the project.”
The authors noted the hospitality sector in Rhode Island continues to show "resilience" in the face of major challenges, from staffing shortages to supply chain problems.
The report also found that industry employment in 2022 still lagged 2019 levels between 10% to 15%. The hospitality industry lost between 35,000 and 40,000 jobs during the pandemic. While corporate travel and large-scale events are still lagging, the spending gap was somewhat offset by a surge in lodging, leisure travel, and food and beverage spending in 2022. Leisure travel has fully recovered while professional and corporate travel still has a way to go before full recovery, according to the report.
However, a more recent report issued in August by the R.I. Department of Revenue’s Office of Revenue Analysis said Rhode Island had now recovered 94% of jobs lost during the pandemic.
Dale J. Venturini, RIHA president and CEO, said the study "has yielded invaluable insights into the trajectory of the state's hospitality and tourism industries post-pandemic."
“The information provided by the diligent work of the students provides not only a statewide snapshot of recovery, but drills down into localized progress, empowering our industries’ stakeholders to make informed decisions,” she said.
Total visitation to the state increased 5.4% to a record 27.7 million people in 2022, according to a similar study released in November by the hospitality research consultancy Tourism Economics.
That study, which did not account for inflation, found visitor spending in 2022 totaled $5.3 billion, up from $4.7 billion in 2019, generating $843 million in state and local taxes.
Christopher Allen is a PBN staff writer. You may contact him at Allen@PBN.com
