After record year, Alabama tourism revenues expected to fall

After record year, Alabama tourism revenues expected to fall

MONTGOMERY, Ala. (AP) — The coronavirus pandemic is expected to end years of record growth in Alabama’s tourism revenues as spending falls by the billions.

The Alabama Tourism Department said 28 million visitors spent nearly $17 billion in the state in 2019, which was the third straight year that travel spending grew by more than $1 billion in the state. Tourist spending increased nearly 8% statewide, according to the agency.

But that growth streak will likely end because people are reducing travel during the pandemic, said state tourism director Lee Sentell. Revenues this year could decline to as low as $14 billion, he said.

“That would put us where we were three years ago,” said Sentell. With schools out early to guard against spreading the virus that causes COVID-19, a longer-than-normal beach season could help fill some of the gap, he said.

A report from the tourism agency said the state’s travel and hospitality industry employed more than 200,000 people for the first time last year, but that also could change because of the pandemic since many hotels, restaurants, entertainment venues and other attractions have scaled back operations or closed since mid-March.

Coastal Baldwin County was the state’s top moneymaker for tourism last year, with $5.2 billion in revenues and about 54,000 people employed around Gulf Shores and Orange Beach. Yet the coast is just now reopening after being shut down for weeks because of the new coronavirus.

In Baldwin alone, about 12,500 unemployment claims have been filed since the economic slowdown began, state labor statistics show. But Bill Brett, whose Brett/Robinson real estate manages about 3,500 coastal condominiums, said business has picked up substantially since Gov. Kay Ivey allowed the state’s beaches to reopen on Thursday.

“When the governor made the announcement, right away we booked about eight times what we did the previous day. It had an immediate effect,” he said in an interview Friday.

With people trying to get back to the coast after weeks at home, bookings since Wednesday have been about 20% better than normal for this time of year, Brett said. But only about 30% of the company’s condominiums were reserved for this weekend compared to 75% in a normal year, Brett said, and business could still be only 70% of normal by July.

“We are expecting a much slower summer,” he said.

About 11,500 unemployment claims have been filed in Shelby County, where many jobs are tied to the hospitality industry around Birmingham. Despite often having the state’s lowest jobless rate, the county is second-highest in the state per capita for claims behind rural Hale County since the coronavirus outbreak sent unemployment claims skyrocketing.