Thursday, January 31, 2008
Reservations about Governor’s Hotel Bragging Points
In the recently released “Governor’s Report on State Performance: 2006-2007”, a little noticed section analyzes the travel industry in Pennsylvania. The report makes a big deal about a 2.3 percent increase in hotel room night rentals from fiscal 2005 to fiscal 2006. The problem is that that much of the increase represents a bounce back from a dip in the prior year. Since the Governor took office, room nights sold have climbed 6.3 percent. During the same period, national room nights sold rose by well over 10 percent, nearly twice as fast as the Pennsylvania rate.
Obviously, for hotel operators in the state, the growth that has occurred is a good thing. But the bigger issue is that outside any comparative context the Governor’s report puts far too much of a glow on the state picture.
Hotel use by non-residents reflects to a large extent the health of the national economy and international influences such as the value of the dollar. Given the national historic assets in Pennsylvania, the sate should have decent growth when the national economy is favorable. But so too do a many other states and clearly some are better at it than Pennsylvania in terms of stimulating growth.
Obviously, for hotel operators in the state, the growth that has occurred is a good thing. But the bigger issue is that outside any comparative context the Governor’s report puts far too much of a glow on the state picture.
Hotel use by non-residents reflects to a large extent the health of the national economy and international influences such as the value of the dollar. Given the national historic assets in Pennsylvania, the sate should have decent growth when the national economy is favorable. But so too do a many other states and clearly some are better at it than Pennsylvania in terms of stimulating growth.
