More From the Census of Business – Hotels

In an earlier post on the Census of Business figures for Dennis I mentioned that the Hotel and Food Services industry was a relatively poor performer in comparison to other sectors of the Dennis economy.  Granted the summer of 2002 was the first summer after the 9-11 attacks, one would have expected that the impacts of the downturn in the economy at that time would have been similarly felt through-out the local economy.  The 2007 data, when available, will be particularly telling.  Until that data becomes available, here are a few interesting tidbits on the trends in the hotel industry in Dennis, based upon comparison of the 1997 and 2002 U.S. Census of Business:

• In 1997 there were 33 properties providing guest accommodations, in 2002 this had dropped to 29.  Two of these were in the hotel industry and two were in the smaller guest services sector.
• In 1997 21% of total sales revenue in hotels went to salaries, in 2002 nearly 30% of sales revenue went to salaries – this despite a 40% drop in total employment in the hotels.
• In 2002 43.7% of the new revenue for hotels (over the 1997 revenue) went to wages.

The future of the Dennis Hotel industry is currently a focus of the Dennis Economic Development Committee.  As you look at the figures noted above, you in turn realize that with wages taking up a significant chunk of new revenues for hotels, that there is little funding remaining to allow for modernization of these facilities.  The thin margin under which hotels are operating clearly represent a threat to the future of the areas tourist economy.

The Economic Development Committee is working with several hotel owners on planning for the future of the industry.  The Committee is studying how to promote a better, more modern hotel industry in town.  The future will require regulatory changes both at the local and regional level.  These changes will need to recognize new business models, the need for on-site complementary services, the need for larger rooms, and the need for more rooms for hotels to operate with a margin that allows for continued re-investment.

As we move forward with this effort, I will post various aspects of the proposal for your perusal.