Oxford Economics Study Underscores Hotel Industry’s Critical Role in Economy
New Orleans, Louisiana (April 27, 2026) – The American Hotel & Lodging Association (AHLA) today released a new economic impact study showing that the hotel industry in the City of New Orleans generated nearly $9 billion in total economic impact in 2025, supported more than 51,000 jobs, and contributed $1.2 billion in total taxes. The study, conducted by Oxford Economics, underscores the outsized role the hotel industry plays in driving the city’s economy.
“New Orleans’ hotel industry is the heartbeat of the city’s economy and a core part of what makes it so attractive to visitors,” said Rosanna Maietta, President & CEO of AHLA. “Our hotels employ tens of thousands of locals, enabling its southern charm and culture to shine on the world stage. At the same time, hotels are operating in a challenging environment, with costs rising across the board from utilities to insurance. To keep supporting our communities and sustaining the city’s economic momentum, we need business-friendly policies and a strong partnership with city and state leaders. Working together, we can ensure the Big Easy remains one of the nation’s premier destinations for years to come.”
“New Orleans is a world-class destination, and our hotel industry is the foundation that makes it all possible,” said Mayor Helena Moreno. “This study confirms what our residents already know: when hotels thrive, our entire city thrives. That means more jobs and more tax dollars for city services. I am committed to working with our hoteliers and AHLA to show the rest of the world why New Orleans should be on everyone’s travel list.”
“Louisiana’s hospitality industry is a crown jewel of our state’s economy,” said Governor Jeff Landry. “The contribution that the hotel industry makes cannot be overstated. My administration will continue to fight for policies that keep Louisiana competitive, reduce regulatory burdens, and ensure that the hospitality sector can keep welcoming guests from across the country and around the world. As we plan for the next big event in New Orleans, I know the hotel industry will be a critical partner every step of the way.”
“Tourism is one of Louisiana’s most vital industries, and the hotels that anchor that industry are critical partners in everything we do,” said Lt. Governor Billy Nungesser. “From Jazz Fest to Mardi Gras to the countless conventions and events that bring visitors to the Crescent City year-round, our hotels are on the front lines of making Louisiana an unforgettable destination. This study highlights just how much is at stake. We need federal policymakers to support the tools that help us compete globally — starting with fully restoring Brand USA funding and ensuring international visitors can travel here seamlessly. Louisiana is open for business, and our hotels are ready to deliver.”
Key Findings
According to the Oxford Economics study, New Orleans hotels in 2025:
- Supported a total economic impact of nearly $9 billion in business sales across the city
- Sustained more than 51,000 jobs — representing 19% of all jobs in New Orleans
- Contributed almost $5 billion to the city’s GDP
- Generated $1.2 billion in total taxes, including $405 million in local taxes, $34 million in state taxes, and $495 million in federal taxes
- Attracted 7.1 million room nights sold across 207 properties with 30,612 guest rooms
- Drove $5.4 billion in total hotel guest spending — the equivalent of $756 per room night sold
- Supported $2.5 billion in wages and salaries
National Context: A Critical Moment for the Hotel Industry
The New Orleans findings are consistent with AHLA’s 2026 State of the Industry report , which found that nationally the hotel industry generated $85.1 billion in taxes, supported 9.2 million total jobs, and paid $128 billion in wages and benefits in 2025. However, the industry faces mounting headwinds: hotel operating costs have risen four times faster than revenue since 2019, led by a 111% surge in insurance costs and significant increases in utilities (28%), property operations (23%), administrative & general expenses (18%), and total labor (15%), while international visitation remains 17% below pre-pandemic levels.
About the Study
The Economic Impact of the Hotel Industry: City of New Orleans was prepared by Oxford Economics on behalf of AHLA and reflects estimated results for the 12-month period ending November 2025. Oxford Economics is one of the world’s foremost independent global advisory firms, providing reports, forecasts, and analytical tools on 200 countries, 100 industrial sectors, and more than 3,000 cities.
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About AHLA
The American Hotel & Lodging Association (AHLA) is the largest hotel association in America, representing more than 30,000 members from all segments of the industry nationwide – including iconic global brands, 80 percent of all franchised hotels, and the 16 largest hotel companies in the U.S. Headquartered in Washington, D.C., AHLA focuses on strategic advocacy, communications support, and workforce development programs to move the industry forward. Learn more at www.ahla.com.