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Hotels, hospitality industry feeling the financial burden of coronavirus

The Director of the S.C. Dept. of Parks, Recreation & Tourism says business is likely down 60-70 percent

COLUMBIA, S.C. — At the Hotel Trundle in downtown Columbia, owner Rita Patel said they've lost half of their occupancy and more than $100,000 since the coronavirus crisis began in South Carolina.

So far, Patel said they're getting by and small businesses in the area are rallying together.

“We plan on getting take out somewhere, I'm not sure yet. Other businesses are encouraging gift card purchases, liking and sharing posts of other businesses, and just kind of getting awareness out,” Patel said.

The hotel, which has been open for nearly two years, was first hit by the cancellation of women’s March Madness, then the wider crisis response.

“So we're trying to like, lick envelopes at this point just to kind of keep our team feeling mentally well and spirits up. So, we've been trying our best to let them know what we're doing behind the scenes to help them. We just-- you know we're just doing what we can do,” Patel said.

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The owner said she was thankful for her great team and employees were being cross-trained and sharing shifts in an effort to keep everyone employed.

The tightening purse strings are a familiar feeling across the state.

Duane Parrish, Director of the South Carolina Department of Parks Recreation & Tourism said it's been a bad month.

“Beginning of March we started to see a dramatic decline in occupancy. The first week of March it was down a little over 5 percent, the second week of march was down about 18 percent, I expect the current week that we're in today will be down 50 to 60 percent,” Parrish said.

Overall, the Director expects the hospitality industry to likely lose 60 to 70 percent of its business. Parrish said hotels are starting to face tough decisions.

“Once the occupancy gets down to the 20 to 25 percent range, which we're pretty close to now, hotels will have to make that decision. Is it less expensive to close than it is to stay open?” Parrish said.

Many hospitality workers, which make up 10 percent of the state workforce, will likely face unemployment or furloughs, according to the Director.

He urges people to buy gift cards to use at a later date and order take out from restaurants. The Hotel Trundle does offer gift cards, as do many other local businesses.

The hospitality and tourism industry account for $24 billion of South Carolina’s economy annually, Parrish said it’s hard to know what the impact from the current crisis will be on the state.

But, there is a silver lining. Parrish said the industry will likely bounce back quickly after the crisis as people, whom have been stuck in homes for weeks, take advantage of cheap gas and a desire to travel.

He said he hopes layoffs and furloughs in the business are temporary and companies will begin rehiring when the crisis is over.

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