The Asian American Hotel Owners Association (AAHOA) is the largest hotel owners association in the nation.
The Asian American Hotel Owners Association (AAHOA) is the largest hotel owners association in the nation. The AAHOA Town Hall at the Twin Arrows conference area allowed Northern Arizona members to meet or reconnect with Southwest Regional Director Dharmesch Ahir.
Northern Arizona Lodging, Tourism, & Restaurant Association (NALTRA) advocates for Northern Arizona hospitality businesses, promotes tourism and keeps members informed about what’s happening in local government that could affect their businesses.
“Issues that we face locally as a business sector include minimum wage increases, pending water rate increases and shortage of skilled and willing-to-work labor force,” said NALTRA President and CEO Regina Salas. Those, coupled with nationwide inflation challenges, rising operational costs and changing consumer demands, brought the businesses together to share ideas.
“Inflation is affecting the hospitality industry,” said Jigar “Jay” Desai, senior vice president of NewGen Advisory, LLC. “Families are not taking their weekend getaways like they’ve done previously.”
Hospitality representatives say consumers still want an $83 hotel room (the average daily rate in 2003), but with increased labor, taxes and supply costs, they say it’s difficult to meet consumer demands. “The challenge today is that your operating costs have gone up, so you can’t lower your room rates,” said Dinesh (Dan) Rama, co-founder and managing director of NewGen Advisory and incoming board chair of Arizona Lodging and Tourism Association.
The multifaceted program on Monday, Nov. 13 included presentations by guest speaker Jay Desai, Discover Flagstaff Director Trace Ward and team, AAHOA Southwest Regional Director Dharmesch Ahir and City of Flagstaff Economic Vitality Director Heidi Hansen.
Discover Flagstaff Marketing and Public Relations Manager Lori Pappas said that although international travel has shifted down 40%, the drive market is filling in the gaps. “We really fit into today’s travel trends. It’s our time to shine.”
Current trends include road-tripping, exploring the outdoors and, according to Conde Nast Traveler, visiting indigenous communities and their lands.
In his presentation, “Outlook of The Hospitality Business in Flagstaff, Arizona,” Desai outlined the global, national, consumer and local challenges facing the hospitality sector. Global challenges, he said, include energy and food supply, cost of living, rising inflation and cyber-attacks on critical infrastructure. He warned of a 2024 U.S. recession caused by higher interest rates, increasing household debt, inflation taking a bite out of disposable income and low consumer confidence.
The challenges in Flagstaff’s hospitality sector include workforce shortages, sustainability demands, lower consumer discretionary spending and natural disasters, he said.
“Some AAHOA members from out of town told me they were amazed at all the programs and campaigns that Discover Flagstaff does for not only Flagstaff but the region,” said Salas, who has been on the NALTRA Board since 2008. “The benefits of being part of NALTRA include synergistic outcomes that strengthen and promote our industry, increased capacity for members to boost revenue and at the same time promote sustainable tourism.”
She added that the tourism and hospitality industry has brought $12.1 million in BBB sales tax revenue that funds parks and recreation programs, beautification and public arts efforts, responsible tourism campaigns and the economic vitality division. “The hospitality and tourism industry employs 12,000 people in Flagstaff,” she said.
Attendees at the collaboration included Twin Arrows Director of Hotel Operations Ivan Aguliar; Sonesta Hotels Area Sales Director Ellen Jimenez; NALTRA Board Vice Chair Ash Patel; NALTRA Board Chair Mitul “Mike” Patel; Sizzler restaurant co-owner Scott Bromley; NALTRA Board member Dhiru “Robin” Prema; NALTRA Board member Dino Dullbson; Karan Patel with Ascend Capital Management (Atria, Dirty Birdies and The Northern Pines restaurants) and Scott Gramm of Best Western Pony Soldier Inn & Suites. FBN
By Stacey Wittig, FBN
Photo by Stacey Wittig: Members of AAHOA and NALTRA attended a joint meeting at Twin Arrows.