2020: Energy Through the Pandemic
The COVID-19 pandemic initially posed a serious risk to the leisure-heavy Gulf Coast tourism trade, because the market solely benefited from one month of Spring Break journey earlier than the stay-at-home orders have been issued. Nonetheless, the state of Mississippi relaxed its COVID-19 restrictions ahead of aggressive markets in close by states, thereby permitting the state’s Secret Coast resorts to seize giant quantities of pent-up leisure demand. Because of this, occupancy and ADR for July and August practically reached pre-pandemic ranges.
The hurricane season can have a adverse or constructive impression on Gulf Coast markets. After Hurricane Sally made landfall close to the Mississippi coast in September 2020, occupancy and ADR ranges remained depressed till March 2021. Nonetheless, throughout the risky first 12 months of the pandemic, the openings of the Mississippi Aquarium, the Resort Legends in Biloxi, and the Pearl Resort in Bay Saint Louis helped assist the rise in tourism demand.
2021: Document Restoration
Tourism alongside the Gulf Coast rebounded much more strongly in 2021, reaching file ranges by the summer season. In response to officers at Coastal Mississippi, this surge in demand was due partly to the complete reopening of casinos and resorts within the spring. Moreover, different places within the Southeast adhered to extra restrictive social distancing and masks necessities. For instance, some market contributors report that proof-of-vaccination necessities in cities like New Orleans made Mississippi, which didn’t have such necessities, a extra engaging drive-to vacation spot in the summertime of 2021.
Hurricane season affected the market once more in 2021. That 12 months, the landfall of Hurricane Ida in Louisiana over the past days of August led to file occupancy and ADR ranges, as residents with out energy have been displaced to this market, and infrastructure restore employees stuffed motels all through the area.
2022: A New Regular?
Essentially the most shocking results of this post-pandemic increase was the speed progress that continued via 2022. Whereas demand remained robust, occupancy ranges started to normalize within the low season as aggressive markets reopened; nonetheless, year-end RevPAR nonetheless climbed previous the robust 2021 outcomes.
Wanting Ahead
Renovations at native motels, increasing sights, and new upscale lodge stock, as detailed under, ought to assist elevate the profile of the Gulf Coast as a drive-to leisure vacation spot going ahead.
- In September 2022, Beau Rivage Resort & On line casino accomplished a $55-million guestroom renovation that included updates to the facilities and state-of-the-art expertise.
- Renovations and repairs started at Ocean Springs’ historic Gulf Hills Resort + Resort underneath new possession in 2021/22. Updates by year-end 2023 are anticipated to incorporate the addition of an outside wedding ceremony chapel and extra guestrooms. The identical builders are increasing The Beatnik following a profitable enhance in room depend at The Roost.
- Paradise Pier Enjoyable Park opened on the Margaritaville Resort Biloxi in March 2023, that includes a 20-story Ferris wheel, a curler coaster, a number of different rides, and the Aerobar, a rotating bar that rises to 115 toes and supplies a view of the Gulf. The second part of the property’s growth will embody a brand new guestroom tower, although a completion date for this addition has not been introduced.
- The White Home Resort suite growth and occasion venue will probably be developed adjoining to a brand new luxurious suite property often called Aqua Suites on Seaside Boulevard in Biloxi. Opening dates for these initiatives haven’t been introduced.
- In February 2023, builders broke floor on the Resort Whisky in Downtown Pascagoula, which can open initially with 16 rooms. A further 40 rooms may very well be added in a second part.
- The Bella in Biloxi will open within the fall of 2023, including a boutique lodging choice to assist the brand new occasion venues which have opened on Howard Avenue lately.
- A brand new upscale resort often called Blue Water Seaside has been introduced for the coast, although no timeline for opening has been confirmed. The $410-million resort complicated in D’Iberville is deliberate to be affiliated with Sports activities Illustrated. It would embody motels, eating places, bars, retail areas, leisure venues, and an eleven-acre synthetic lagoon and seashore.
- An growth of Stennis Worldwide Airport will permit heavier planes to land and enhance operational capability, supporting authorities and industrial employers within the area.
We observe that, following two years of robust demand, native market contributors predict developments to normalize in 2023 given the next elements:
- Together with indicators similar to excessive gasoline costs and slowing financial developments, an earlier begin to the college 12 months for a lot of Mississippi districts in 2023 will reportedly convey peak days right down to 73 from 110 throughout the summer season season.
- Different competitor markets reopened in March, drawing away some demand.
- The persistent reputation of short-term leases via firms similar to Airbnb can be affecting occupancy ranges.
Nonetheless, continued fee will increase ought to offset any occupancy losses, and RevPAR for year-end 2023 within the Coastal Mississippi space is anticipated to stay just like the 2022 degree.
For extra data on this area, contact Lauren Hock, HVS Director and Gulf Coast Chief.
Jane Rogers additionally contributed to this text.
