VIRUS
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Colorado’s new coronavirus cases fell for a fourth week, erasing its late-July spike. An average of 2.2 percent of tests were positive in the most recent three days, well within the recommended range, indicating there likely aren’t many undetected infections. Testing percentages in Colorado have been constant, making for a more reliable analysis than other data which is available. Robust dashboard/platform with relevant charts for the entire state and different counties can be found at this Denver Post site: here. For the Colorado Department of Public Health & Environment dashboard, here.
And why is that important [Insights Collective] … The good news doesn’t necessarily overcome other recent reports of outbreaks at local restaurants – mainly staff cases – in Colorado Springs, Larimer, Vail, and Gunnison. However, Gov. Jared Polis recently announced bars and restaurants would now be able to serve alcohol until 11 p.m. – a decision made easier due a decrease in the rate of positive tests among Colorado residents, particularly among those ages 20-29.
REOPENING
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Miami and Ft. Lauderdale, Florida are expecting to open its beaches for Labor Day. The state recently led the country in new infections, and while things have slowed since that peak, they remain high by wider standards. The relative decline is enough for governments to allow beaches and hotels to open, however, so long as cases remain down, and social distancing rules are followed. Source: South Florida Sun-Sentinel
And why is that important [Insights Collective] … The planned reopening of South Florida beaches is prompting hotels to roll out several incentives for visitors, though the real incentive will be if the region can get itself into Phase Two of reopening before the holiday weekend. South Florida is the only region in the state still in Phase One, which means no table service at bars and a few other tight restrictions. Vacationers from elsewhere in Florida are driving traffic to some hotels anyway, but out-of-state arrivals are unlikely to perk up until more local activities can be enjoyed by visitors – a good rule of thumb for other resorts and destination to follow. We will be tracking closely to see what the destination will look like two-weeks after Labor Day!
ECONOMY
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The Hyatt Regency Lake Tahoe in California joined the Grand Hyatt Vail in Colorado in offering “work-from-hotel” packages as the sector continues to face a cash-crunch, and foreclosure pressures. A report compiled by an industry group says that nearly 25 percent of hotels are 30 or more days behind on payments and at risk of foreclosure. The share of hotels in a similar position at the beginning of 2020 was 1.3 percent. The industry group called on Congress to provide aid funding in response. Source: CNN, Full list of Hyatt properties participating, here
And why is that important [Insights Collective] … The packages suggest a real pivot point in the sectors’ understanding that for things to change, they must change. Hotel foreclosures are real, and the numbers are stark: hotel loans in delinquency are not only 18 times higher than the beginning of the year but more than 50 percent higher than the peak of the 2008-9 financial crisis. We see more hotel properties making pivots (sooner rather than later) to become mixed-use facilities rather than the ‘place to sleep’ brand they’ve come to be known for.
NEW REALITIES
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Indiana has launched a program to use $10 million in federal aid on cultural and tourism needs. The goal is to support organizations that depend largely on travel and in-person events. The program is open to applications from destination marketing organizations as well as those that directly provide arts programming or put on festivals and similar events. Source: Greenfield Daily Reporter
And why is that important [Insights Collective] … Indiana joins a growing list of states, destinations and resorts to receive this vaulted $10 million in federal aid from the CARES Act for tourism promotion and support. While non-profit destination organizations were not placated directly with line-item relief from Congress, we see these block-grant type programs like the one in Indiana as one of several funding models for resorts and destinations post-pandemic. Other destinations to benefit from this funding include Los Angeles, Spokane, Vermont, Wisconsin and Tennessee.