Nevada’s hotels lead U.S. tax contributions as labor shortages persist in 2024

From Nevada’s record tax haul to a $758B guest spending boom, the hotel industry’s rebound faces one major hurdle: 80,000 unfilled jobs. Can it sustain growth?

, and Administrator

2025 November 11 . 11:16 AM

1 min read

This picture is clicked inside the hotel and in front, we see a table on which white color cloth is... — This picture is clicked inside the hotel and in front, we see a table on which white color cloth is placed. On table, we see plates, fork, spoon, glass, branches of tree. Around the table, we see chairs and behind that we see the other table which is like green in color and behind that, we see a man wearing black blazer. Next to him, we see the girl standing and behind them, we see door on which exit is written on it and behind that door, we see two men standing.

Nevada’s hotels lead U.S. tax contributions as labor shortages persist in 2024

Hotels across the United States are set to contribute significantly to the economy in 2024, with Nevada's hotels leading the way in federal tax payments. Meanwhile, the industry continues to grapple with a worker shortage.

According to the American Hotel & Lodging Association, Nevada's hotels are projected to pay a staggering $3.6 billion in federal taxes, more than any other state. However, the top 10 states in hotel tax payments are not specified, nor are the exact amounts expected per state.

In total, hotels nationwide are forecast to generate $83.4 billion in tax revenue in 2024, with $29 billion going to federal coffers and $54.3 billion to state and local governments. Nevada's hotels alone are expected to contribute $4.4 billion to state and local taxes, bringing their total tax contribution to $8.1 billion.

Hotel guest spending is predicted to reach an impressive $758.6 billion in 2024, indicating a robust recovery in the industry. Despite this growth, the industry is still recovering from the pandemic, with 225,000 jobs short of 2019 levels, and over 80,000 jobs currently open across the US.

California is projected to generate the highest state hotel tax revenue, at $8.8 billion. Other states expected to be among the top 10 include Florida, Texas, Illinois, Michigan, Hawaii, Massachusetts, and Pennsylvania.

The hotel industry's significant tax contributions and guest spending underscore its importance to the US economy. However, the persistent worker shortage is a challenge that the industry must address to fully recover from the pandemic.