Boosted by the Masters Tournament, employment in the leisure and hospitality sector increased by 500 in April to stand at 27,000 in the Augusta Metropolitan Area. However, this was the lowest April total since 2014.
Between 2014 and 2019, employment increased on average by 3,700 jobs between March and April. The bump the local labor market receives from the Masters Tournament in the pandemic era has clearly declined.
Data from Smith Travel Research shows that hotel occupancy in Richmond County has held up well in the pandemic era. In April 2022, hotel occupancy was 65.6 percent compared to 63.4 percent between 2014 and 2019. Additionally, revenue per available room was strong at $140 in April 2022. Between 2014 and 2019, revenue per available room averaged $113.
Some of the increase may reflect general inflation and cost pressures in the industry being passed on to customers, but it also reflects strong demand for experiences and travel after two years of limited opportunity. The revenue generated for the hotel industry amounted to $26.6 million in April 2022, up 1.1% from 2019.
The strong performance of the hotel industry and the lackluster labor market may be explained by changing practices that require fewer workers during the pandemic. Hotels increasingly do not provide daily maid service and have automated front desk check-in procedures.
The hotel industry in Augusta has also remained strong in the face of competition from Airbnb. Airbnb revenues from rentals in Augusta Richmond County were $7 million in April 2022. Additionally, an extra $2.5 million in revenue was generated in March because Airbnb records revenue when the contract is made, not when the home is occupied.
Some of these rentals may previously have occurred through housing agencies such as Tournament Housing or Corporate Quarters, but represent an increase of 5 percent over 2019.
Since last summer, these rentals are taxable at 6 percent which would generate more than half a million in tax revenue for Augusta Richmond County, equivalent to a third of the revenue generated by hotel lodging tax.
