Hospitality

Hospitality

Industry Overview

Hospitality Visitors

The lodging industry consists of more than 40,000 companies operating approximately 50,000 properties with combined annual revenue of about $150 billion, according to research conducted by Hoovers. Business and leisure travel drives demand and are impacted swiftly by shifts in the economy and recreational spending.

The City of Scottsdale is significantly invested in the development and support of the tourism industry, due to its even greater positive impact on the local economy. The Scottsdale Economic Development Department and Tourism and Events Department focus on supporting the attraction of hospitality infrastructure such as resorts, entertainment, retail and dining offerings; new signature events; and the promotion of Scottsdale as a premier destination for both leisure and business visitors. Tourists to the Scottsdale area have a tremendous impact on revenue for the City, as privilege tax collections attributable to visitors for FY14/15 totaled an estimated $37.3 million.

Scottsdale Advantage

In the early days of Scottsdale’s hospitality industry, dude ranches and health spas flourished. In the 1960s the development of the local art industry and specialty shopping districts blossomed as the resort industry expanded. This ultimately gave way to the full service, amenity-laden properties that have made Scottsdale a successful destination for tourism for many years.

Today, Scottsdale is an internationally recognized tourism destination community, widely known for its golf courses, recreational amenities, climate and high-end resorts. An emerging Downtown with its urban “boutique” hotels, nightlife scene, numerous events and attractions, dining opportunities and art galleries complement the Old-Town western heritage and beautiful open spaces of the McDowell Sonoran Preserve to provide visitors a unique and exciting destination for travel. 

Scottsdale Tourism industry figures are impressive:

  • In 2015, Scottsdale had 8.6 million person trips, an increase of 3.1 percent over 2014. 52 percent were overnight trips and 48 percent were day trips. The overnight trips generated $1.2 billion in spending, an increase of 11.8 percent over 2014. The average room rate for Scottsdale/Paradise Valley market area hotels in 2015 was $184.85, an increase from the 2014 average of $169.90 per room. The percentage of room revenue to total hotel revenues for the City of Scottsdale in 2015 was 61.5 percent. Scottsdale received a fiscal return of about $1.27 from visitors for every $1 spent in operating costs in FY 2014/15.

  • Scottsdale’s bed tax revenues totaled $17,164,132 in 2015, up 8.9 percent from 2014. 

  • In the past 10 years, the bed tax has generated more than $118 million in revenue for the City of Scottsdale

  • Annual occupancy for the Scottsdale/Paradise Valley market area in 2015 was 67.7 percent, up from 67 percent in 2014.

  • The typical overnight leisure traveler to Scottsdale is 50 years old and the top five activities engaged in by these visitors on overnight trips to Scottsdale were Shopping, Fine Dining, Swimming, visiting a Landmark/Historic Site and Hiking/Backpacking.

Featured Firms

The Greater Scottsdale Area is home to a significant number of resorts, within and adjacent to City limits. Servicing a significant number of these impressive facilities is facilitated through a strong public-private partnership with the Scottsdale Convention & Visitors Bureau (SCVB), with conveniently located offices in Downtown Scottsdale. The SCVB is a 501(c) (6) nonprofit, private company that conducts destination marketing efforts on behalf of Scottsdale and other nearby destinations. The SCVB’s primary funding comes from the City’s bed tax collection by resorts and hotels. As voter-approved half of the city’s bed tax is allocated to the SCVB for destination marketing initiatives. The SCVB has more than 40 full- and part-time employees, along with a volunteer board of directors comprised of local industry leaders who represent a variety of segments from the hospitality and tourism industry. The SCVB is committed to enhancing the economic base of Scottsdale and its partnering communities through a strong visitor, meetings and group travel industry, achieved by:

  • Maintaining a leadership position in Arizona’s hospitality and tourism industry
  • Positioning Scottsdale in top-performing domestic and international markets to attract targeted, high-value visitors to area resorts and hotels
  • Teaming with member businesses to create awareness and excitement among meeting planners, tour operators, travel agents and media in established feeder markets, while building credibility and interest in entry markets
Company Location Type Employees Type
Sheraton Phoenician Corporation Single Location 1,700 Resort hotel
Troon Golf LLC Headquarters 1,500 Public golf courses
Fairmont Scottsdale Princess Single Location 1,150 Resort hotel
PR Hotel, LLC Single Location 510 Hotels
Scottsdale Plaza Resort LLC Headquarters 500 Resort hotel
Bluestar Resort & Golf LLC Single Location 500 Bluestar Resort & Golf LLC
Montelucia Resort & Spa LLC Single Location 475 Resort hotel
International Conference Resorts of North Carolina, Inc. Headquarters 425 Resort hotel
Spokane Airport Property LLC Headquarters 300 Hotels and motels
MSR Properties LLC Single Location 275 Hotels
Grayhawk Golf LLC Single Location 250 Public golf courses
Windmill Inns of America, Inc. Headquarters 240 Motels
KHP Scottsdale Hotel LLC Single Location 190 Resort hotel
The Desert Highlands Association Single Location 170 Golf club, membership
Mirabel Golf Club, Inc. Single Location 155 Golf club, membership

Source: Hoovers.com, September 2015