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 Thousands - Room Nights 2,500.0 CY 2019 2,217.6 2,207.6 2,086.1 2,038.6 2,000.0 Demand for Rooms was nearly 8% higher 1,985.3 January 2020 compared to January 2019 1,734.2 1,580.6 September 2020 was 51% 1,500.0 lower than September 1,358.9 April 2020 was 79% 1,339.6 2019 lower than April 2019 1,297.5 1,243.4 1,115.6 1,000.0 994.5 CY 2020 901.1 807.8 618.3 500.0 502.7 380.2 0.0 Jan Feb Mar Aprl May June July August Sept Source: Smith Travel Research Sold 2020 Sold 2019
MA Lodging Monthly Room Revenue: CYs 2020 & 2019 through September Millions USD 600 500 481.3 479.9 448.7 431.1 409.4 400 September 2020 65.9% January 2020 was 8% higher lower than September than January 2019 2019. 326.9 300 April 2020 was 90% lower than April 2019 254.1 206.3 192 200 184.4 182.5 170.8 156.5 146.9 108.4 100 75.1 44.8 33.5 Source: Smith Travel Research RmRv20 RmRv19 0 Jan Feb Mar Aprl May June July August Sept
MA State Level Lodging Room Revenue: CYs 2020 & 2019 through June Millions USD 35 June 2020 84% lower than June 2019 30 28.572 25 23.32 Jan 2020 22% higher than Jan 2019 Feb 2020 17% higher than Feb 2019 20 18.46 April 2020 60% lower than April 2019 16.15 15 13.68 13.29 12.55 11.71 12.692 10 7.262 5 4.68 Source: MA DOR 1.784 RmRv20 RmRv19 0 Jan Feb Mar Aprl May June
MA Local Level Lodging Room Revenue: CYs 2020 & 2019 through June Millions USD 25 June 2020 82% lower than June 2019 22.839 20 18.412 Jan 2020 12% higher than Jan 2019 Feb 39% higher than 15 Feb 2019 14.547 13.108 12.174 April 2020 58% lower than April 2019 10.839 10.382 10.119 10 9.409 6.132 5 4.162 Source: MA DOR 1.585 RmRv20 RmRv19 0 Jan Feb Mar Aprl May June
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
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