How Bad Is COVID-19’s Impact on the Hospitality Industry? Here’s One Example

One of the largest hospitality metropolitans in the country lost billions due to the pandemic. 

Two years after Miami, Florida had a record-breaking year in tourism the city took a $3.36 billion hit in revenue.

Back in 2018, more than 23 million tourists traveled to the vibrant city – contributing $18 billion to the local economy, according to the Greater Miami and Convention and Visitors Bureau. Following a shutdown of the local hospitality industry, Florida International University’s Chaplin School of Hospitality and Tourism Management investigated how bad the damage was financially.

“South Florida’s economy has a high reliance on the hospitality and travel-related business and our study shows if those sectors are down,” said Eric Beckman, lead author of the study, said in a university press release.  “It results in huge financial losses and an economic decline for the entire community.”
Here’s a breakdown in losses, according to the study…

• Hotels: $1.3 billion revenue
• Restaurants: $742 million revenue
• Both:  $664 million in expenditures and $651 million from furloughed workers, not spending

Further research suggests it will take at least three years for the hospitality industry to bounce back to pre-pandemic levels. Beckman seems hopeful.

“The hospitality industry is a resilient industry filled with ambitious entrepreneurs and people who know how to transfer their skills,” He said in FIU’s release of the research. “That, combined with the fact that we know people love to travel and eat out, will result in the resurgence of travel and tourism.”