The state of Arizona and local counties and municipalities are expected to collect more tax revenue from hotels in 2023 than in any previous year, according to projections released Tuesday by the American Hotel & Lodging Association and Oxford Economics.
In 2019, AHLA said Arizona hotels generated $758 million in tax revenue, so 2023 could be as much as a 15.5% increase over the last highest generating year. Arizona is trending for a higher increase in revenue than the rest of the country, with the national average in increased tax revenue by state at 13.6% based on AHLA’s projections.
“Hotels are making significant strides toward recovery, supporting millions of good-paying jobs and generating billions in state and local tax revenue in communities across the nation,”, the president and CEO of AHLA, said in a statement. “To continue growing, we need to hire more people. Fortunately, there’s never been a better time to be a hotel employee, with wages, benefits, flexibility and upward mobility better than ever before.