By the Greater Albuquerque Chamber of Commerce
As we all know, tourism and entertainment has be hit the hardest during the current economic recession, which accounts for a significant portion of the 12.7% unemployment rate, eighth highest in the nation. The depth of the effects on these two industry segments is quite startling. Here’s a look at tourism:
The Impact of COVID-19:
- COVID.19 has hit the tourism industry particularly hard.
- Hotel occupancy rates decreased to a low of just over 20% in April of 2020.
- Visitor spending also decreased drastically when compared to this time last year, with spending down over 8096 YoY in April. Though this also began to recover in June, visitor spending was still down nearly 40% YoY during that time. It is estimated by Tourism Economics that New Mexico has already lost $1.7 billion in visitor spending since March of 2020.
- Leisure and hospitality employment has also been disproportionally affected by COVID•18, with an average of 30,000 New Mexicans employed in this industry out of work.
- In April of 2020, leisure and hospitality employment had decreased by nearly 45% YoY.
We have no reason to believe that there has been much recovery in tourism as we hear anecdotal descriptions of the continuing shuttering of businesses in tourism dependent areas. While restaurants may get some relief as they are permitted limited opening, there is, obviously, a long way to go before they experience anything like normal. Here’s a look at a a state survey taken from April:
Survey of New Mexico Restaurants Highlights Challenges COVID-19 Impact on Restaurants and Employees Disclosed
- 47,000 employees have been laid off, that’s out of 71,700 employees before the COVID-19 closure. Two-thirds of all restaurant employees have been laid off or furloughed.
- 40% have closed temporarily. 48% anticipate temporary closure during the next 30-days.
- 3% of restaurants have already closed permanently.
- 3% of restaurants say they will have to permanently close if the stay-at-home order lasts through May.
- Restaurants also reported a 61% decline in sales for those that remain open.
- In April the NM Restaurant industry will lose more than 8230 Million in sales.
- There are 3,500 restaurants in NM.