There finally appears to be a light at the end of the tunnel for area hotels.
Figures released last week by the Sedona Chamber of Commerce show that the first two nights of the Memorial Day weekend saw 77% occupancy on that Friday, May 22, and then 91% the following Saturday, May 23.
This is a dramatic increase over what local hotels have seen the last two months as a result of COVID-19 and associated closures.
“Frankly, I was surprised by how many people were traveling, but I was not surprised when I heard the occupancy figure,” Chamber President and CEO Jennifer Wesselhoff said. “I worked at the visitor center on Saturday and saw firsthand how busy town was.”
“National research shows most people are understandably leery of travelers visiting their community, and people who are ready to travel are asking lots of questions about the safety of their destinations. This tells us that overnight and multi-night visitors, who are making a greater travel investment than day trippers, remain cautious, which is only prudent.”
The chamber report surveyed hotels in the Sedona area with 16 or more rooms, excluding timeshare, which amounts to 2,515 hotel rooms, or 63% of the total inventory. These figures do not include short-term vacation rentals nor timeshares.
“This data is the most reliable and comprehensive source for occupancy and average daily rate data, providing a good overall industry-wide trend line,” Wesselhoff said.
There is no hard data in terms of where all the visitors over Memorial Day weekend traveled from. But, Wesselhoff said some of the hoteliers reported visitors from Scottsdale, Phoenix, Southern California, Tucson and Las Vegas.
In terms of whether or not this is a sign of things to come — or if it was simply a result of the Memorial Day weekend — Wesselhoff said numbers that high can be attributed mainly to the holiday. But, she said it also has a lot to do with it being the first post-shutdown holiday.
“Many Memorial Day visitors just needed to get outside and Sedona is a convenient outdoorsy destination on a holiday,” she said. “In the coming year, we focus on a visitor profile that aligns with the Sustainable Tourism Plan. A few of those characteristics are overnight and multi-night stays, making purchases in our community, taking an active interest in sustainable action such trail etiquette and Leave No Trace principles. This first influx did not reflect that profile. I heard the same from other destinations around the state.”
Wesselhoff said more evidence of the holiday surge is that occupancy during the rest of the week ranged from 28% to 43%, lower than the weekend but still considerably better than the low point of 10% a few weeks earlier.
“Memorial Day also shows that Sedona is well positioned for weekend recovery,” she said. “Again, our challenge will be increasing overnight stays as an overall percentage of visitation. Overnight stays mean more spending in the community, a chance to absorb our sustainability message and be responsible guests who treat our environment and quality of life with respect. That is a key part of long-term sustainability.”
Wesselhoff said the chamber is projecting a slow and steady recovery with figures down from normal years. It is looking at an overall occupancy rate of around 55% for Fiscal Year 2020-21, which begins Wednesday, July 1, and ends Wednesday, June 30, 2021. The chamber is down 23% compared to an average year. The chamber also anticipates an average daily rate over the next year of $190, a decrease of 20%.
“This is a best estimate based on current information,” Wesselhoff said. “There is much we don’t know such as whether a second wave [of COVID-19] will occur, if it will be severe, and how people and government may react. There is still a lot of uncertainty. One thing I can say with absolute certainty is that we will monitor developments very closely, be adaptable and flexible, and put community safety first.”
