To our valued members of the Rhode Island Hospitality Association (RIHA),
As we embark on a new year, I am honored to address you as Chairman of the Rhode Island Hospitality Association. The year 2024 presented unique hurdles, but through collaboration and determination, our industry demonstrated resilience and innovation. We were honored to recognize Dale Venturini's decades of leadership of RIHA and tremendous impact on the industry with her retirement early in the year; and we are proud that industry veteran and former Chairman of the association, Farouk Rajab, chose to join this organization as President & CEO. He has already begun to build on the organization's enviable record of success, bringing innovation, vision and servant leadership at a time of tremendous opportunity as well as continued challenges.
2024 in Review
The Rhode Island hospitality industry experienced both success and persistent issues in 2024, some still reflecting the COVID overhang, others highlighting a lack of nuanced understanding of our industry by the general public, and a few unexpected, such as infrastructure failures and government spending shifts. While certain sectors experienced tailwinds, others faced persistent challenges.
Occupancy rates at the Providence Convention Center reached an encouraging 75-77%, signaling a strong return of large-scale events. This positive trend indicates a resurgence in group and event bookings, contributing significantly to the overall recovery of the hospitality sector. While business travel remains subdued, leisure travel appears to be driving the demand for accommodations, with visitors willing to pay higher prices for their stays. This growing demand for lodging and a willingness among travelers to pay higher prices for accommodations is promising, but also requires operators and owners to meet the challenges of this shifting landscape with greater operational nimbleness, and investment.
The restaurant and foodservice sectors have also experienced recovering revenues and guest volumes, with greatly varying experiences depending on locale and service type. But this topline growth has not driven a recovery of profits or margins, as food and labor costs, energy prices, credit card fees, and a host of other expenses have often outpaced revenue growth. The restaurant industry plays a vital role in the state's economy, employing 12% of the state's workforce generating over 6% of the state's GDP.
RIHA's 2024 Accomplishments
RIHA played a crucial role in advocating for the interests of our members and the industry. We successfully defended against several labor mandates that could have negatively impacted our employees and businesses. These included maintaining the tip credit, preserving the path to a $15 minimum wage, and clarifying the tip pooling law. Maintaining the tip credit and the $15 minimum wage was a significant victory for our members, as it helped to protect their businesses from increased labor costs and ensured fair compensation for employees. Furthermore, RIHA actively engaged in legislative discussions on various issues, including short-term rentals, the Human Trafficking Prevention Act, the extension of "Alcohol to Go," and ongoing discussions on credit card fees . Our efforts ensured that the voices of our members were heard and considered in the policy-making process.
In addition to our advocacy work, RIHA hosted a variety of events, meetings, seminars, training and education classes, and communications for the benefit of our members and the hospitality industry. These initiatives provided valuable resources and opportunities for our members to connect, learn, and grow, while developing talented future leaders to continue to drive the critical role lodging and foodservice plays in our state's economy, our members businesses, and our current and future employees professional opportunity and security.
Goals and Priorities for 2025
Looking ahead to 2025, RIHA remains committed to supporting the growth and prosperity of the Rhode Island hospitality industry. Our key priorities include:
- Workforce Development: Growing the future generation of hospitality professionals by addressing the labor shortage, promoting career opportunities in hospitality and investing in training and development programs.
- Advocacy: Continuing to advocate for policies that support a favorable business environment for our members and sustainable workplaces for our employees. This includes addressing issues such as rising food costs, supply chain disruptions, and regulations that impact the restaurant industry.
- Cost Savings & Efficiency: Provide a selection of products and services that help advance business operations and build collaborative partnerships.
- Innovation: Fostering innovation and technology adoption to enhance the guest experience and improve operational efficiency.
Conclusion
The Rhode Island hospitality industry has shown remarkable resilience in the face of challenges. While uncertainties remain, the industry is poised for continued growth and innovation. RIHA remains dedicated to supporting our members and advocating for policies that foster a thriving hospitality sector. By working together, we can ensure a bright future for the Rhode Island hospitality industry.
In closing, I would like to express my sincere gratitude to all our members, the RIHA team, and our board for their continued support and dedication to the Rhode Island hospitality industry. Your commitment to excellence and your active involvement in RIHA are instrumental in our collective success. I encourage each member to become more actively involved in our association. Your insights and feedback are invaluable in steering the course of our organization. Together, we will navigate the challenges ahead and create a thriving future for our industry.
Colin Geoffroy, G Hospitality
Chairman, Rhode Island Hospitality Association