Leisure & Hospitality

Definition

This sector includes services provided by the Food and Accommodation sectors along with Arts and Entertainment. The Accommodation and Food Services sector comprises establishments providing customers with lodging and/or preparing meals, snacks, and beverages for immediate consumption.
The Arts, Entertainment, and Recreation sector includes a wide range of establishments that operate facilities or provide services to meet varied cultural, entertainment, and recreational interests of their patrons. This sector comprises (1) establishments that are involved in producing, promoting, or participating in live performances, events, or exhibits intended for public viewing; (2) establishments that preserve and exhibit objects and sites of historical, cultural, or educational interest; and (3) establishments that operate facilities or provide services that enable patrons to participate in recreational activities or pursue amusement, hobby, and leisure-time interests.

Trends

Leisure and Hospitality represents approximately 4% of Ventura County’s GDP and is projected to grow by 7%  over the next five years.  Though average weekly wages are low at around $436 for 2018 data, drilling down into specific occupations shows slightly higher wages.
For example, Performing Arts and Spectator Sports has an average weekly wage of $1,257; the Independent Artists/Writers/Performers subsector is at $2,538 for average weekly wages; Museums, Parks and Historical Sites at $862; Fitness and Recreational Sports Centers at $381; Hotels (except Casino Hotels) and Motels at $609; Special Food Services at $564 and Catering at $550.  Weekly wages in the subsector of Drinking Establishments appears to pull the average wage down with the weekly wages at around $311.  The low wage in this latter subsector is likely due to the occupations being “tip-based.”  Recent legislation addresses this issue seeking to provide “tip-based” occupations with a high base wage.
While this is a large roll-up sector for various service occupations, it’s important to understand of the total number of jobs in this sector, some 85% are in Food & Accommodation, and of those, approximately 80% are in Food Services strictly.
It is also important to note that the Leisure and Hospitality sector is supported in large part from tourism, hence the sector itself may be viewed as an export industry, bringing money into Ventura County.
Given the social aspect of this sector, it has been hit the hardest since the inception of business closures due to the pandemic in March.  Between March and May of this year, the sector has dropped by approximately 13,800 jobs.  Although up 1,400 jobs between April and May due to phased economic openings, the year over year loss for May sits at 14,800 according to EDD.
To better understand the incremental impacts of the pandemic upon this sector, the chart and graph below display Q1-Q4 2019 employment totals, followed by Q1 2020 jobs at 37,600, then the first two months of Q2 employment, at 22,400 and 23,800 respectively.  These figures will likely continue to oscillate throughout the duration of the pandemic which may last for one to two years.

Chart

Leisure & Hospitality Employment Trend