2021 forecast for Maine's hospitality sector: Facing another inhospitable year
File Photo / Tim Greenway
Greg Dugal, director of government affairs for HospitalityMaine
Maine’s hospitality industry, the second-largest employer in the state after health care, was also the hardest hit by the COVID-19 pandemic. By the end of 2020, the industry had recovered less than half of the 41,000 jobs it lost because of shutdowns and travel bans.
Even though there’s optimism as vaccines roll out, 2021 is still going to be a tough year for the industry. The full recovery is going to take a group effort stretching the federal government down to consumers, says Greg Dugal, director of government affairs for HospitalityMaine.
“Unfortunately, the challenges are still the same,” Dugal says. It will be spring or summer before the vaccine rollout’s effect begins to be felt, which means distancing rules still in place for at least the first six months of the year. “The biggest challenge will be making it to summer and having the resources to open up or [for those that are open] ramp up,” he says.
Once things open up, pent-up travel demand combined with the perception of Maine as a safe place to visit, will help.
The bottom-line prediction?
“First half of 2021: Awful. Second half: Better,” he says.
More money from federal and state sources will be critical if small hospitality businesses are going to survive, he adds.
Dugal, who advocates for the hospitality industry with the Legislature, says word is that there are an overwhelming amount of bills backed up this session, many of which will address COVID-19 issues.
“It will be incredibly busy at both the state and federal levels in 2021 when it comes to legislation, he says.
Steve Hewins, HospitalityMaine’s CEO, announced in October he would step down at the end of 2020 after leading the association since its formation in 2018.
His successor will have to lead an industry through “a massive rebuild” in 2021, Dugal says. But the strength behind the recovery will come from the business owners and their employees, who “are tremendously resilient.”
“If 2020 provided any good at all, it proved that resilience to all Maine citizens and to hospitality employers and employees themselves,” he says.
He hopes the state’s residents will step up, too, and continue to get takeout and find ways to support the industry that has worked so hard to stay afloat.
“Throw in a cocktail to go and a gift certificate for a loved one,” Dugal says. “Honestly, that ‘s the only way that the great dining landscape created over many years in the state of Maine can return to normal.”
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