I won’t give too much away, but tomorrow, as Ron Burgundy might say, is kind of a big deal. We will host our Annual Meeting at Pendry Park City with an excellent breakfast, outstanding speakers, an exciting new initiative for our partners, and introduce this year’s recipient of the Myles Rademan Spirit of Hospitality Award.
After wowing the crowd at our Wasatch Back Economic Summit this spring, Zions Bank Senior Economist (and State Representative) Robert Spendlove is back on our stage. Robert’s talent for blending expert analysis of our economic outlook with extensive knowledge of public policy makes him a fascinating presenter in demand statewide. We’re delighted and fortunate to have him back.
As we expand our mission to increase inclusivity and diversity, it’s the perfect time to welcome Ryan Starks, the executive director of the Governor’s Office of Economic Opportunity. Ryan’s work supports innovation and entrepreneurship for all Utahns.
Vicki Varela, Managing Director of the Utah Office of Tourism, will also take the podium. Years ago, Vicki foresaw the wisdom of marketing Utah as an outdoorsy, sustainability-minded destination (appealing to the type of visitors we now seek) and unified our state’s brand. A friend and colleague, I am excited she’ll share her vision for Utah’s tourism future with our partners.
We will discuss much more, such as our “Visit with Care” and “You’re on the Right Trail” summer marketing campaign that paints alluring pictures of our attractions while carrying our message of environmental stewardship and respect for our small-town lifestyle.
So far, summer is presenting a mixed economic picture. July’s 45 percent hotel occupancy was down nine percent from last year, while average daily rates were up four percent, to $345. Preliminary August data shows occupancy down ten percent from 2022, but again, average daily rates rose, up 15 percent to $260. Combining the last six months, average occupancy is down seven percent (at 42%), and rates are up nine percent (at $633).
On the surface, it appears fewer visitors are spending more this summer, but overall, the case doesn’t hold up. Summit County data from June (the latest available) show sales tax collections rose just slightly (1.6 percent) compared to June 2022, while restaurant tax and the transient room tax (paid by hotel guests) fell 6.2 and 8.1 percent, respectively. Visitor Visa card spending in June was down 5.6 percent compared to last year.
In this context, our success in the conference and meeting sector is even more meaningful. For the fiscal year that ended in June, the Chamber sales team booked 268 meetings representing 41,423 room nights and more than $20 million in hotel and F&B revenue. The team is hot on the trail of new leads daily positioning our rep as a world class conference destination.
Nationally, traveler sentiment remains mixed. Research shows travel budgets are dropping amid persistent interest rate and inflation concerns, but also that travelers feel better off financially compared to a year ago. Excitement for travel remains at record levels – just over 83 percent of American travelers have trip plans in the next 12 months. From a policy perspective, job growth and unemployment data suggest the Fed may be nearing the end of its rate hike cycle, though inflation remains stubborn. This dynamic picture is another reason I’m looking forward to Robert Spendlove’s remarks tomorrow.
In my next column, I’ll tell you about the program we introduce tomorrow that addresses a significant concern for our partners and their employees, and introduce our Rademan Hospitality awardee. Today, though, I am enjoying anticipating an informative, festive Annual Meeting at the Pendry.