Confidence in hotel industry high despite despite pandemic
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An investment in hosting youth sports tournaments made nearly a decade ago has paid off for Henrico County and its hotels and tourism industry during the particularly travel-challenged COVID-19 era, according to a number of people close to the industry.
From 2012 to 2019, the economic impact of sports tourism in Henrico County increased 99%. And, the impact during the summer of 2020 was almost no different despite the pandemic.
“It (youth sports) was the only game in town this summer,” Henrico Tourism Supervisor Dawn Miller told the Citizen recently. “It’s what drove heads to beds.”
The county, which was the first to begin hosting sports tournaments in Virginia during Phase 2 of the state-mandated COVID-19 travel restrictions in June, targeted families that would have to travel about three hours to get to the region. According to Miller, there were 42 sports tournaments throughout the county from June 13 to Aug. 30, including 15 baseball tournaments, 12 softball tournaments and four volleyball tournaments.
“Softball is huge,” Miller said. “More dollars are spent when girls and their families come to town.”
Jack Berry, the president and CEO of the Richmond Region Tourism, echoed Miller’s sentiments about the strength of sporting events for Henrico.
“The county did an outstanding job by hosting sporting events,” he explained. “It provided a pretty good base.”
Henrico County officials have doubled-down on sports tourism; after a delay due to COVID-19, county officials announced last month that they are moving forward with the development of an indoor sports facility and convocation center at Virginia Center Commons, approving $1.9 million to the project. Miller estimated that the project could be complete by the summer of 2022.
Sports tourism accounts for 51% of bookings in Henrico County according to Richmond Region Tourism. While the total number of tournaments was significantly down in 2020 compared to 2019 – from 186 tournaments (which generated an estimated $66.2 million in local spending according to Visit Henrico County) to 120 – the numbers reflect the time period when travel was restricted and the fact that there have not been any indoor tournaments in the county this year, eliminating big draws like basketball, wrestling and cheerleading.
Despite hosting fewer events, the county generated $14.7 million in economic impact, falling short by just $1.6 million less than 2019’s summer totals, Miller said. Hotel revenues in the region were down in Fiscal Year 2020 (which ended June 30) at $330 million compared with $375 million in FY 019, but FY 2020’s numbers matched those from FY 2016, according to Richmond Region Tourism. Since June, occupancy numbers in Henrico County hotels have hovered around 50%.
Although the outlook has been high, Berry did point out that less business travel and fewer meetings, conventions and indoor events have hurt the industry as a whole. According to Richmond Region Tourism, 75 meetings or conventions either were canceled or postponed in the Richmond area in 2020. That accounts for more than 44,900 hotel room nights and $32.4 million.
“Our industry is one of the most devastated in the world,” he said.
Shamin Hotels CEO Neil Amin, whose company owns a number of local hotels in Henrico and the region, noted that the hotel industry is cyclical by nature. He added that the region’s stable environment makes it one of the better performers within the market.
“This was a temporary shock to our industry,” Amin explained. “We believe in Henrico County.”
In fact, Amin believes enough in the county that his company broke ground this week for a new hotel to be built next to the Embassy Suites on Emerywood Parkway in Henrico.
“We have a very bright future,” he said of the industry.
Amin credited teamwork for helping the industry survive in an era in which many hotels had to reduce expenses. When staying in the area, guests may notice fewer staff members, lower occupancy numbers and reduced amenities. These are all measures to maintain guidelines set before the industry.
In 2019, visitor spending accounted for $2.7 billion in the Richmond region, including $994 million in Henrico County. In that same period, nearly 25,000 were employed within the industry. All hotels in Henrico County are now open and taking reservations, according to Richmond Region Tourism.
