While much attention has been paid to the recent and rapid rise of high-paying tech jobs in San Francisco, it turns out the hospitality industry is a major economic driver in the city.
According to a new report, the city’s hotels generate $6.6 billion in economic activity annually. That includes providing 24,000 jobs and contributing $300 million in tax revenue to the city — making it the largest single contributor of any industry.
Some $2.1 billion comes from spending on rooms alone. Nearly $1.4 billion comes from spending on a number of services and supplies, while another $3 billion is made in direct and indirect spending from hotel visitors.
The study, commissioned by the Hotel Council of San Francisco and completed by the Bay Area Council Economic Institute, provides a quick overview of a number of areas in which the city’s 215 hotels have a significant impact at a time when other industries are getting more credit.
“This report is interesting because people are concerned when they see the economy changing and high-tech companies coming in demanding only high-skilled labor,” said Tracey Grose, one of the report’s authors. “So it’s encouraging to see that the hotels offer a good cross section of skills and experience levels for people in the community.”
Read more: San Francisco Business Times San Francisco hotels pump $6.6 billion into city’s economy