Media share economic study detailing effects of coronavirus on hospitality industry
The Portland Press Herald and News Center Maine reported on a study by University of Maine economists that projected the coronavirus pandemic may result in Maine’s hospitality industry losing tens of thousands of jobs and one-third of its revenue this year. The report indicates hospitality employment is expected to drop by 42% to about 46,200 workers, and revenue is expected to fall about 23% to about $1.6 billion for the full year, according to the Press Herald. The preliminary findings were based on revenue, payroll and employment for the first four months of 2020, as well as an economic recovery model developed by researchers at Harvard and Brown universities and the Bill and Melinda Gates Foundation. “The analysis does not assume that the current travel restrictions will continue through the end of the year,” said Todd Gabe, professor of resource economics and policy and report co-author, to the Press Herald. According to the Press Herald, “An updated report is expected in August, using May and June hospitality sales figures from Maine Revenue Services.” The Associated Press and USA Today also cited the study.