Business conditions in Minnesota hospitality & tourism: Fall 2022

1. Tell us your business story

The hospitality and tourism sectors have experienced extreme volatility since 2020, including impacts from the pandemic, rising interest rates, and disruptions in the supply chain. As the economic recovery in Minnesota ebbs and flows, we need your input to continue tracking activity in these important sectors, and at your business.

Three organizations are sponsoring this survey: The Federal Reserve Bank of Minneapolis, Hospitality Minnesota and Explore Minnesota. This short survey (7-8 minutes) will help us understand real-time conditions at your business, and across the industry in general. This will help our three organizations better shape policies and programs intended to help the industry.

You and your survey responses are anonymous. We plan to share data for further analysis, so please do not include any insights in open comments that would identify you or your firm.

There are also benefits for your business to responding to this survey. Once the survey is completed, summary results will be passed on to you, so you'll also benefit from the intelligence provided by businesses across the state.

Thank you for your participation. We wish your business much luck and strong sales going forward!

Ron Wirtz

Regional Outreach Director

Federal Reserve Bank of Minneapolis

ron.wirtz@mpls.frb.org

Liz Rammer
President & CEO
Hospitality Minnesota
liz@hospitalitymn.com

Lauren Bennett McGinty

Director
Explore Minnesota
Lauren.Bennett.McGinty@state.mn.us

Question Title

1. Recent business activity: From September through November, how was business activity at your firm compared with similar periods in the past?

	Significantly lower	Somewhat lower	Little or no change	Somewhat higher	Significantly higher
Recent revenue compared with same period last year	Recent revenue compared with same period last year Significantly lower	Recent revenue compared with same period last year Somewhat lower	Recent revenue compared with same period last year Little or no change	Recent revenue compared with same period last year Somewhat higher	Recent revenue compared with same period last year Significantly higher
Recent revenue compared with same period in 2019 (pre-pandemic)	Recent revenue compared with same period in 2019 (pre-pandemic) Significantly lower	Recent revenue compared with same period in 2019 (pre-pandemic) Somewhat lower	Recent revenue compared with same period in 2019 (pre-pandemic) Little or no change	Recent revenue compared with same period in 2019 (pre-pandemic) Somewhat higher	Recent revenue compared with same period in 2019 (pre-pandemic) Significantly higher
Recent customer traffic compared with same period last year	Recent customer traffic compared with same period last year Significantly lower	Recent customer traffic compared with same period last year Somewhat lower	Recent customer traffic compared with same period last year Little or no change	Recent customer traffic compared with same period last year Somewhat higher	Recent customer traffic compared with same period last year Significantly higher
Recent customer traffic compared with same period in 2019 (pre-pandemic)	Recent customer traffic compared with same period in 2019 (pre-pandemic) Significantly lower	Recent customer traffic compared with same period in 2019 (pre-pandemic) Somewhat lower	Recent customer traffic compared with same period in 2019 (pre-pandemic) Little or no change	Recent customer traffic compared with same period in 2019 (pre-pandemic) Somewhat higher	Recent customer traffic compared with same period in 2019 (pre-pandemic) Significantly higher

(Optional) Additional comments/What changes (+/-) are you seeing in activity or buyer habits?

Question Title

2. How would you describe business activity at your firm over the last 6-9 months?

1. Steadily improving

2. Up and down, but more good than bad

3. Mostly flat or steady, but at acceptable levels

4. Mostly flat at poor levels

5. Volatile; more bad than good

6. Steadily declining

Question Title

3. Future business activity: What are your expectations for December through February compared with similar periods in the past?

	Significantly lower	Somewhat lower	Little or no change	Somewhat higher	Significantly higher
Compared with same period last year	Compared with same period last year Significantly lower	Compared with same period last year Somewhat lower	Compared with same period last year Little or no change	Compared with same period last year Somewhat higher	Compared with same period last year Significantly higher
Compared with same period in 2019 (pre-pandemic)	Compared with same period in 2019 (pre-pandemic) Significantly lower	Compared with same period in 2019 (pre-pandemic) Somewhat lower	Compared with same period in 2019 (pre-pandemic) Little or no change	Compared with same period in 2019 (pre-pandemic) Somewhat higher	Compared with same period in 2019 (pre-pandemic) Significantly higher
Customer traffic compared with same period last year	Customer traffic compared with same period last year Significantly lower	Customer traffic compared with same period last year Somewhat lower	Customer traffic compared with same period last year Little or no change	Customer traffic compared with same period last year Somewhat higher	Customer traffic compared with same period last year Significantly higher
Customer traffic compared with same period in 2019 (pre-pandemic)	Customer traffic compared with same period in 2019 (pre-pandemic) Significantly lower	Customer traffic compared with same period in 2019 (pre-pandemic) Somewhat lower	Customer traffic compared with same period in 2019 (pre-pandemic) Little or no change	Customer traffic compared with same period in 2019 (pre-pandemic) Somewhat higher	Customer traffic compared with same period in 2019 (pre-pandemic) Significantly higher

(Optional) What are you watching that influences your outlook?

Question Title

4. Financial health: How would you rate your business' current financial health?

Growing

Stable, but positive

Stable, but negative

Declining

Question Title

5. Special question on debt: How much, if any, additional debt has your business taken on over the two years due to COVID?

Did not borrow any money

Less than $25,000

25,000 to $100,000

$100,000 to $500,000

$500,000 to $1 million

$1 million to $5 million

More than $5 million

What impact have higher interest rates had on your business?

Question Title

6. Demand: Tell us about customer demand in relation to your firm's operating capacity.

Well below current supply capacity; could satisfy much higher demand

Somewhat below supply capacity

At or near supply capacity

Well above supply capacity; turning away business

If you can't meet current demand, or are not at full demand, what are the primary reasons?

Question Title

7. Price inflation: How would you describe price changes for your business over the last 12 months?

	Prices have dropped (by any amount)	Little or no change (+/- 1 percent)	1-2 percent higher	2-3 percent higher	3-5 percent higher	5-10 percent higher	More than 10 percent higher
Retail prices charged to customers for your products or services	Retail prices charged to customers for your products or services Prices have dropped (by any amount)	Retail prices charged to customers for your products or services Little or no change (+/- 1 percent)	Retail prices charged to customers for your products or services 1-2 percent higher	Retail prices charged to customers for your products or services 2-3 percent higher	Retail prices charged to customers for your products or services 3-5 percent higher	Retail prices charged to customers for your products or services 5-10 percent higher	Retail prices charged to customers for your products or services More than 10 percent higher
Wholesale prices charged to you by vendors for products or services	Wholesale prices charged to you by vendors for products or services Prices have dropped (by any amount)	Wholesale prices charged to you by vendors for products or services Little or no change (+/- 1 percent)	Wholesale prices charged to you by vendors for products or services 1-2 percent higher	Wholesale prices charged to you by vendors for products or services 2-3 percent higher	Wholesale prices charged to you by vendors for products or services 3-5 percent higher	Wholesale prices charged to you by vendors for products or services 5-10 percent higher	Wholesale prices charged to you by vendors for products or services More than 10 percent higher

(Optional) Additional comments/Where are you seeing the most/least pressure in pricing?

Question Title

8. How would you describe the direction of inflation/price pressures over the last month or so?

Getting much worse

Getting somewhat worse

Flat/unchanging

Getting somewhat better

Getting much better

Additional comments

Question Title

9. Supply chains: How would you describe your ability to obtain critical supplies needed to serve customers?

No difficulties; good supply availability

Slightly difficult

Moderately difficult

Very difficult

Extremely difficult

If you are experiencing supply chain difficulties, please note the products involved, and whether the problem seems to be getting better or worse.

Question Title

10. Hiring demand: What best describes overall hiring demand at your business?

	Hiring more seasonal staff	Hiring more year-round staff	Hiring more seasonal and year-round staff	Hiring to replace turnover OR bring back furloughed workers	Not currently hiring; stable headcount	Cutting seasonal staff	Cutting total total/year-round headcount
From September through November	From September through November Hiring more seasonal staff	From September through November Hiring more year-round staff	From September through November Hiring more seasonal and year-round staff	From September through November Hiring to replace turnover OR bring back furloughed workers	From September through November Not currently hiring; stable headcount	From September through November Cutting seasonal staff	From September through November Cutting total total/year-round headcount
Future: From December through February	Future: From December through February Hiring more seasonal staff	Future: From December through February Hiring more year-round staff	Future: From December through February Hiring more seasonal and year-round staff	Future: From December through February Hiring to replace turnover OR bring back furloughed workers	Future: From December through February Not currently hiring; stable headcount	Future: From December through February Cutting seasonal staff	Future: From December through February Cutting total total/year-round headcount

(Optional) Additional comments/If hiring, are jobs mostly part-time or full-time?

Question Title

11. Labor availability: How would you describe labor availability for any open or recently filled positions at your company?

1. Very tight

2. Moderately tight

3. Slightly tight

4. Not tight; good labor availability

5. Not hiring, and don't expect to in the near future

(Optional) Additional comments/What are the biggest obstacles keeping workers from filling open positions?

Question Title

12. Wages: What is the current average hourly wage for your employees (including tips, if applicable)

$10-$12

$12-$15

$15-$20

$20-$30

Above $30

Question Title

13. Recent and future wage growth: How have average wages at your business changed during the pandemic, and what are your expectations of future wage growth?

	Declined (by any amount)	Little or no change (+/- 1%)	Increase of 1-3%	Increase of 3-5%	Increase of more than 5%
Recent: Average wages today compared with 12 months ago	Recent: Average wages today compared with 12 months ago Declined (by any amount)	Recent: Average wages today compared with 12 months ago Little or no change (+/- 1%)	Recent: Average wages today compared with 12 months ago Increase of 1-3%	Recent: Average wages today compared with 12 months ago Increase of 3-5%	Recent: Average wages today compared with 12 months ago Increase of more than 5%
Future: Expected wage changes over the coming 12 months	Future: Expected wage changes over the coming 12 months Declined (by any amount)	Future: Expected wage changes over the coming 12 months Little or no change (+/- 1%)	Future: Expected wage changes over the coming 12 months Increase of 1-3%	Future: Expected wage changes over the coming 12 months Increase of 3-5%	Future: Expected wage changes over the coming 12 months Increase of more than 5%

(Optional) If you've raised wages, has it had any effect on attracting necessary labor?

Question Title

14. When do you expect revenues at your firm to return to something close to pre-pandemic levels?

Have already met or surpassed pre-pandemic levels

2023

2024 or later

Never

(Optional) Do you believe your firm will recover sooner or later than the industry as a whole?

Question Title

15. Solvency: Under current business conditions, how long could your firm remain solvent?

less than 1 month

1-3 months

4-6 months

6-12 months

Indefinitely – solvency is not in question

Additional comments:

Question Title

16. Location: Where in Minnesota is your business located?

Northeast (Carlton, Cook, Itasca, Kanabec, Koochiching, Lake, Pine, St Louis counties)

Central (Aitkin, Benton, southern Cass, Crow Wing, Douglas, Grant, Kandiyohi, McLeod, Meeker, Mille Lacs, Morrison, Otter Tail, Pope, Sherburne, Stearns, Stevens, Todd, Wadena counties)

Northwest (Becker, Beltrami, northern Cass, Clay, Clearwater, Hubbard, Kittson, Lake of the Woods, Mahnomen, Marshall, Norman, Pennington, Polk, Red Lake, Roseau, Wilkin counties)

Southern (Big Stone, Blue Earth, Brown, Chippewa, Cottonwood, Dodge, Faribault, Fillmore, Freeborn, Goodhue, Houston, Jackson, Lac qui Parle, Le Sueur, Lincoln, Lyon, Martin, Mower, Murray, Nicollet, Nobles, Olmsted, Pipestone, Redwood, Renville, Rice, Rock, Sibley, Steele, Swift, Traverse, Wabasha, Waseca, Watonwan, Winona, Yellow Medicine counties)

Metro (Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Washington, Wright counties)

Question Title

17. Business type: Which of the following best describes your primary business activity?

Overnight accommodation

Food/drink establishment

Attraction/entertainment company

Allied & other businesses (goods & services)