VIRGINIA BEACH, Va. — The coronavirus pandemic is taking a toll on hotels. Social distancing and shelter-in-place orders have caused the industry to nearly grind to a halt.
A new economic report from Old Dominion University’s Dragas Center for Economic Analysis and Policy revealed staggering numbers. Across the Commonwealth, occupancy rates have dropped more than 60 percent, and revenues are down 70 percent from this time last year.
ODU economics professor Robert McNab said the numbers will worsen. McNab predicts hotel occupancy rates will drop below 10 percent in the coming weeks.
“We’re gonna see a slower recovery than a lot of people anticipated because people are fearful of large groups now, and many people who would have traveled here have lost their jobs and have less money to spend,” said McNab.
The declines are even greater for Hampton Roads hotels. That same report shows occupancy rates in the Norfolk and Virginia Beach market have dropped nearly 80 percent.
The pandemic comes as the region nears peak tourist season.
“For the hotels in Hampton Roads, the summer is like Christmas for Walmart, Amazon, and Macy’s. That’s the time when they really make their money. That’s when they’re able to charge much higher rates because they’re in such demand,” said McNab.
McNab said people aren’t going to feel comfortable about returning to the beaches, restaurants, and hotels until they feel confident COVID-19 is taken care of.
“All we can say right now is that the current models project that once we enter into June and July, things should start looking dramatically better for Virginia, assuming we keep our social distancing measures in place and then we can start talking about how to reopen businesses and get people back to work,” said McNab.
Until then, we all have to do our part.
“The big thing we need to do right now is to really think about not only our neighbors, but also to say how do we as a community, state pull together and look out for each other because we’ll be stronger together,” said McNab.
Despite the uncertainty, McNab said there’s a light at the end of the tunnel for the hotel industry.
Months of being cooped up will only make the beaches of Hampton Roads even more desirable.