Rhode Island
Is RI’s hospitality industry in trouble? These trends are raising concerns
Take a peek inside the RI Hospitality Association’s Economic Outlook Breakfast
Industry leaders discussed consumer economic anxiety and workforce concerns at the annual event, which was held Wednesday.
PROVIDENCE – Rhode Island’s hospitality industry continues to recover from the shutdowns it faced in 2020, although the pace has slowed considerably as new economic factors put pressure on the state’s employees and consumers.
The Rhode Island Hospitality Association hosted a Economic Outlook breakfast Wednesday, detailing to its membership the current statistics on the food service, lodging and recreation industry locally and nationally. Representatives from the National Restaurant Association and Pinnacle Advisory Group, a hotel asset management firm, gave in-depth reports on the hospitality industry’s post-pandemic recovery and predictions for the industry’s near future.
Employee retention and recruitment remain a top concern
The major theme of the morning was the impact current economic pressures are having on the hospitality industry, especially its workforce. In his presentation on the current state of the restaurant industry, National Restaurant Association Vice President of Research and Knowledge Chad Moutray said that while some sectors have regained the number of employees lost during the pandemic, others have been slower to recover, especially the full-service restaurant industry. Additionally, the number of job openings in the restaurant industry remains greater than the number of unemployed workers able to fill those positions, as it has been since 2021
RI Hospitality Association Chief Operating Officer Heather Singleton, whose presentation specifically highlighted workforce issues faced by the industry, explored these problems in more depth using numbers from a report on Rhode Island Employment Trends and Workforce Issues in 2022-2023, which was published this April. Through this, Singleton noted that while the minimum wage and median wage in Rhode Island are both higher than it is nationally, the accommodation and food services sector had one of the lowest average annual wages of any sector in the state, which Singleton attributed largely to the fact that the sector employs more people under the age of 25 than any other sector. However, the report also showed that the industry is aging, as 15.9% of the sector was identified as being 55 years old or older in 2023 compared to 7% in 2003. In fact, 66% of those employed in accommodation and food service jobs were 25 years old or older in 2023, compared to 57% in 2003.
Singleton also pointed to the lack of employee well-being and engagement as an issue, both for the hospitality industry but also for the nation as a whole. Singleton showcased a recent Gallup report on the State of the Global Workplace, which claimed that 77% of employees globally are either not engaged or actively disengaged with their work, costing the global economy about $8.9 trillion. To combat this, Singleton pointed to training programs the association provides to boost engagement, which the Gallup report suggests could reduce absenteeism and turnover while increasing employee well-being and productivity.
Restaurants and hotels notice increased customer price sensitivity
Both reports coming out of the restaurant and hotel industry that morning indicated a growing split in consumer habits as consumer anxiety over the state of the economy increases. Kate Mashburn of Pinnacle Advisory Group revealed that, on a national level, luxury and upscale hotels and accommodations have experienced continued growth while budget and middle-cost travel is decreasing as consumers are becoming more price-conscious compared to just after the pandemic. Additionally, a survey the National Restaurant Association conducted among restaurant operators indicated increasing concerns about the economy as well as increasingly pessimistic outlooks on general business conditions.
Statewide, the hotel industry is steady, with year-to-date occupancy rates hitting just one percentage point under the national average of 63% for July 2024, with Warwick’s occupancy rate projected to reach up to 69% by the end of 2024. Mashburn attributes this partially to increased activity coming out of T.F. Green Airport.
Meanwhile, on Aquidneck Island, occupancy rates have decreased since 2023 owing to increases in supply, namely the opening of the Gardiner House in September 2023, the Wayfinder hotel’s phased reopening and Newport Harbor Island Resort’s reopening in April 2024.
Overall outlook still positive for 2030
Despite these concerns, the hospitality industry’s job market is continuing to see positive growth. Moutray’s presentation showed that, by July 2024, employment in restaurants finally surpassed what it had been before February 2020. Similarly, Singleton’s presentation showed that the accommodations and food service sector had the largest change in annual employment of any industry sector in the state between 2021 and 2022.
The report and Singleton’s presentation also projected the sector would increase employment by 35.3% between 2020 and 2030. Within the hospitality sector, employment in Food Preparation and Serving Related jobs is expected to increase the most of any other sector in the state, with cooking, serving, bartending and quick service counter positions among the top in employment increases.
Rhode Island
Rhode Island high school yearbook printed with the word ‘school’ misspelled on its cover: ‘Shocking to see’
It failed spelling.
A Rhode Island high school mistakenly misspelled the word “school” on its yearbook cover.
Over 100 copies of Johnston Senior High School’s 2026 yearbook are missing the letter “c” in the word “school” written on its spine.
Students, faculty and parents at what was dubbed “Johnston Senior High Shool” in the keepsake graduation book are shaking their heads at the cringeworthy mistake.
“It was really a shocking thing to see, a whole high school misspelling the word ‘school,’” Johnston senior Neari Vazquez told NBC 10. “It’s kind of a bad look.”
Johnston Senior High School Superintendent Scott Sutherland told 12 News that he wrote a letter to the school’s families to apologize for the error, made by the yearbook printing company Treering.
In the note, he explained that Johnston’s yearbook club looked over a digital proof of the book prior to publication, but it did not show the spine.
However, Treering, which is based in Silicon Valley, released a statement disputing his claims.
“The school reviewed and approved both before the book went to print,” the spokesperson wrote.
“The yearbook was printed exactly as the school’s editorial team approved it.”
The school’s yearbook club first noticed the glaring error when the boxes of books arrived at the school.
“One little thing, it’s like everything is perfect but this one thing is messed up,” yearbook club member Nate Dellamorte told NBC 10.
“When I talked to the advisor, he was already actively trying to fix it and a lot of the members said they’re gonna help him.”
Sutherland is outraged over the embarrassing oversight, and has already consulted with lawyers for advice on the matter.
“We are extremely disappointed that this error made it through the company’s quality control and production process,” he continued in his letter.
“We are currently working directly with the yearbook company and other local vendors to ensure the issue is corrected before any yearbooks are distributed to students.”
Others think the yearbooks shouldn’t be reprinted — and the school should just chalk it up to a funny mistake.
“I mean it does happen, and I’m sure it would be too costly to reprint everything,” parent Melanie DaSilva told NBC 10.
“So it might just be one for the books and probably get a laugh.”
Rhode Island
R.I. House Finance budget phases in millionaires tax over three years – The Boston Globe
In January, Governor Daniel J. McKee touched off a debate about a millionaires tax by proposing a state budget that would impose a 8.99 percent tax rate on personal income of more than $1 million — a 3 percentage point increase over the current top bracket that would have generated $67 million in fiscal year 2027.
The House Finance budget would phase in that millionaires tax by raising that top rate by 1 percentage point per year over three years — 6.99 percent for tax year 2027, 7.99 percent in 2028, and 8.99 percent for 2029. The move would generate an estimated $22 million in 2027, $68 million in 2028, $115 million in 2029, and $142 million in 2030.
Blazejewski said phasing in the millionaires tax will help Rhode Island deal with federal funding cuts as they take effect in the years ahead. Advocates see that tax as a crucial source of funding for essential programs amid federal cuts, he noted, while opponents predict it will hurt small businesses and drive away rich residents.
“We thought this strikes the right balance here for our state, given the situation we’re in with the federal government,” Blazejewski said. “We think this is a prudent way of increasing revenue over time, and then phasing it in, so it has less shock, it has more time to be absorbed, and then also comes online exactly when we need it.”
Rhode Island is pursuing a millionaires tax three years after Massachusetts imposed a 4 percent millionaires tax on top of its 5 percent income tax, raising billions in revenue. On May 25, the Globe reported that the Massachusetts surtax on that state’s highest earners has already generated more than $3.1 billion in revenue this fiscal year, with two months remaining — surpassing the $2.4 billion projected.
Inspector general
The House Finance budget includes $1.3 million to fund an independent inspector general’s office staffed with 12 full-time employees who will investigate waste, fraud, and abuse in state government.
Blazejewski called for creating an inspector general’s office soon after becoming House speaker on May 7. The move by the state’s most progressive House speaker came as a surprise to some because Republicans have long made the inspector general’s office a top legislative priority.
But Blazejewski noted he introduced inspector general legislation in 2015. On Friday, he said the federal government is cutting funding at the same time the state has seen “high-profile state failures” such as the closure of the Washington Bridge westbound and the botched rollout of a $99 million state payroll system.
McKee and Republican lieutenant governor candidate John J. Loughlin II questioned why Blazejewski wants the inspector general to oversee the executive branch — but not the Legislature.
On Friday, Blazejewski noted that voters approved a separation of powers amendment to the state Constitution in 2004 to ensure the three branches of government are separate and distinct, and that the inspector general’s office would be an administrative agency of the executive branch.
“If you allow the executive office to run roughshod over the Legislature, the judiciary, you no longer have three branches of government,” Blazejewski said. “It’s not original to Rhode Island. It’s a fundamental principle of government.“
RIDOT audit
The budget includes an audit of maintenance work by the state Department of Transportation. “We just have had too many high-profile failures, and we need to conduct an audit as to the maintenance program,” Blazejewski said.
The budget also removes the Department of Transportation director as chairman of the Rhode Island Public Transit Authority. Former DOT director Peter Alviti Jr. began serving as chairman of the bus agency’s board in 2023. But Blazejewski said, “We just think it’s a conflict of interest.” The DOT director can continue to serve on the board, but not as chairman, he said.
No line-item veto
The House Finance budget rejects McKee’s call for placing a constitutional amendment on the November ballot asking voters to give the governor line-item veto power, which would allow him to strike specific items from the budget without having to approve or veto the entire bill.
Last year, McKee refused to sign the state budget approved by the General Assembly because it raised taxes and fees, but he did not veto the bill. And McKee noted that 43 other states have some form of line-item veto authority.
But Blazejewski said, “That line item veto is about changing the power structure between the governor and the General Assembly,” and the current process works with the governor proposing a budget and legislators passing a budget. Other states have had “issues” with the line item veto, he said, noting Wisconsin’s governor used that power to delete words, numbers, and punctuation from a bill to change its meaning.
Budget exceeds $15 billion
The budget totals a record $15.2 billion for the fiscal year that starts July 1, marking an increase over the $14.859 billion proposed by McKee.
In August, the business-backed Rhode Island Public Expenditure Council warned that the state’s rate of spending was not sustainable. And in the Republican response to McKee’s State of the State, House Minority Leader Michael W. Chippendale said the state budget has grown by 200 percent since 2000, when it was about $4.5 billion.
URI medical school funding
The House Finance budget includes $5 million as an initial investment in creating a medical school at the University of Rhode Island.
The Senate had included that proposal in a 17-bill package aimed at strengthening the state’s strained health care system. Blazejewski said the medical school will help alleviate the state’s severe shortage of primary care doctors in the future.
Tax on Social Security
The House Finance budget includes the first year of McKee’s proposal to eliminate state personal income taxes on Social Security benefits over three years.
Under current law, taxpayers who have reached full Social Security retirement age (67 or older) and have incomes of less than $107,000 for single filers, or $133,750 for joint filers, are exempt from state income tax on Social Security income. The House agreed to eliminate the current minimum age threshold.
Child tax credit
The House Finance budget does not adopt McKee’s proposal to replace an existing tax deduction for dependents with a new child tax credit that would refund families $325 on their taxes per child, per year.
But it does build on the existing tax deduction structure and adds a $330 child tax credit to help lower income families. Blazejewski said the new system “costs a little bit more but gives even more of a benefit to families in Rhode Island.”
Bond questions
The budget includes a record $600 million in bond questions on the November ballot, but it modifies some of the proposals in McKee’s budget.
- Blazejewski said McKee’s budget “underfunded” an integrated health building at URI. So the budget provides $275 million (rather than $215 million) for the state’s three colleges, including $165 million (rather than $105 million) for the URI building, $50 million to renovate Rhode Island College’s Adams Library; and $60 million for a workforce innovation center at the Community College of Rhode Island.
- $120 million for housing, including $25 million for producing housing units for homeownership.
- $100 million (rather than $115 million) for economic development, including $55 million (rather than $70 million) for site development at the Quonset Business Park and I-195 District.
- $50 million for the “cultural economy,” including $45 million for a State History Center that would display the state’s founding documents.
- $55 million for “green economy bonds.” Blazejewski said, “Our caucus spoke over and over about making the green bond greener, and we’ve done just that.“
- The House budget eliminated the $50 million McKee proposed for Career and Technical Education. Blazejewski said testimony indicated the proposal was underfunded even at $50 million, “so we’re going to go back to the drawing board.”
Energy proposals
The House Finance budget adopts some, but not all, of McKee’s proposals for lowering energy bills.
House Majority Whip Katherine S. Kazarian, an East Providence Democrat, said the budget expands the renewable energy standard to including hydro and nuclear energy, which will result in savings.
But she said the budget would reject McKee’s plan to push back the 2033 deadline to reach 100 percent renewable energy sources for state electricity until 2050. “We’re going to continue to keep that 2033 deadline, which is really important to our caucus and, frankly, to the renewable energy investments that have come to the state,” she said.
Central Falls schools
The budget returns the Central Falls school district to local control after 35 years of state control. Blazejewski said this was a priority of Central Falls Mayor Maria Rivera.
Domestic violence calendar
The House budget includes $600,000 to hire three full-time employees and create a domestic violence calendar in state Superior Court to address a backlog of 1,200 felony domestic violence cases.
The House Finance Committee voted 11 to 2 to send the budget to the House floor for a vote next Friday, June 5.
Edward Fitzpatrick can be reached at edward.fitzpatrick@globe.com. Follow him @FitzProv.
Rhode Island
Health professionals warn Rhode Islanders to watch out for Lone star ticks
PROVIDENCE, R.I. (WJAR) — Health professionals are warning Rhode Islanders to look out for a fast-moving threat in the brush this summer: the Lone star tick.
NBC 10’s Martha Konstandinidis went out to see the increase in ticks firsthand and has some simple steps to protect your family.
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