Illinois, which bills itself as the “Middle of Everything” in an ongoing TV ad campaign, may also be in the middle of a post-pandemic tourism recovery.
While some metrics still lag, Illinois hotel revenue hit a record $308 million in fiscal year 2023, which ended June 30, surpassing the previous high of $296 million in fiscal year 2019, the state’s Office of Tourism announced Monday.
The record hotel revenue likely reflects higher room rates, however, as occupancy remains below pre-pandemic levels in Chicago, the state’s largest hotel market, according to data from Choose Chicago, the city’s tourism arm. Illinois did not provide statewide hotel occupancy rates.
More broadly, the state appears to be on the road to tourism recovery. Last year, Illinois welcomed 111 million visitors, up 14% over 2021, but still below the pre-pandemic record of nearly 123 million visitors in calendar year 2019, according to data provided by the state and Tourism Economics.
Visitor spending is also closing in on pre-pandemic levels, rising 37% last year to more than $44 billion. In 2019, Illinois generated a record $45.5 billion in visitor spending, according to the state’s data.
The state’s tourism industry was essentially cut in half during the depths of the pandemic, bottoming at 67 million visitors and $23 billion in spending in calendar year 2020, according to the data. In April 2022, the state launched the $30 million “Middle of Everything” TV campaign featuring Illinois-born actress and comedian Jane Lynch.
The campaign, which added three new spots this summer, features Lynch as a singing tour guide visiting everything from the Adler Planetarium to Shawnee National Forest, and is credited with boosting the state’s visibility as a tourism destination as travel continues to pick up nationwide.
The new spots are airing in 22 markets across the Midwest and headed north of the border this summer to debut in Toronto.
“Illinois has made unprecedented investments in the travel and tourism industry and more visitors are coming to Illinois and supporting our businesses as a result,” Kristin Richards, director of the Illinois Department of Commerce and Economic Opportunity, said in a statement.
While hotel revenue has recovered, occupancy may still have some room to grow to reach pre-pandemic levels.
In Chicago, the central business district has about 150 hotels offering nearly 46,000 rooms. Last year, occupancy was at about 60%, well below the 74% rate in 2019, according to data from Choose Chicago.
Hotel revenue in Chicago was nearly $2.3 billion last year, or 93% of the $2.46 billion revenue total in 2019, according to Choose Chicago.
Michael Jacobson, president and CEO of the Illinois Hotel & Lodging Association, said higher room rates have closed the revenue gap.
“We’ve long surpassed our average daily rate from pre-pandemic levels, because of inflation,” Jacobson recently told the Tribune. “So the rates have definitely recovered to pre-pandemic levels, but not quite for occupancy.”
The average daily hotel room rate last year was $231.90, up 13% from the 2019 rate of $204.65, according to Choose Chicago.
Jacobson projects occupancy to hit 70% this year and reach pre-pandemic levels by 2025.
Chicago hotels are coming off a record weekend in early June when Taylor Swift swept into town for three sold-out shows at Soldier Field. The confluence of 60,000 Swifties per night and the annual American Society of Clinical Oncology meeting at McCormick Place filled nearly 97% of rooms, according to Choose Chicago.
Totals have yet to be released for the rainy NASCAR Chicago Street Race during July Fourth weekend, but hoteliers were hoping for another substantial boost in occupancy for the nationally televised event.
