The news gets worse. Depending upon the hotel, occupancy rates for the month of April are down from 5% to 15%. "We've been hearing from general managers that occupancy is way down," Arthur Canter, executive director of the Massachusetts Lodging Association, tells GlobeSt.com.
Canter blames the softening economy for the drop. "Corporate business is down, international travel is down, leisure is down--this has a direct impact on the hotel industry," notes Canter. He is quick to add that the hotel industry has a direct impact on other industries as well. People who stay in hotels eat at local restaurants, shop at local stores, rent cars and take buses. "If we're down, everything else will be down," he says.
It's not just hotels here that are feeling the pinch. Hotel occupancy is down nationwide, including New York City where occupancy rates there have dropped 7%." Everybody is in shock," notes Canter, who believes that it is up to the state to step in and help stem this tide.
According to Canter, legislators have been taking money from the Tourism Fund that was created last year and earmarking that money for local projects rather than putting it to marketing the state. "We're seeing all of our competing states increasing their tourism budgets," says Canter, "but Massachusetts isn't."
Canter also believes that the state should be focusing on increasing international tourism, which jumped 15% in the last year. That budget has been slashed in half. "It's our fastest growing market and we'll lose our market share," notes Canter. "We have grave concerns as an industry and people aren't getting the picture and what the implications are."
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