Economic Contribution of Maine’s Hospitality Sector—October 2019 (Gabe and Crawley)

ECONOMIC CONTRIBUTION OF MAINE’S HOSPITALITY SECTOR

Version 2.01

October 2019

Todd Gabe and Andrew Crawley2
School of Economics, University of Maine

This study shows the following:

 Maine’s hospitality businesses—defined to include hotels and motels, and restaurants
and bars—employed about 59,000 workers (full- and part-time jobs) and generated
$4.0 billion in taxable retail sales in 2018.
 The Maine hospitality sector had a statewide economic contribution, including
multiplier effects, of an estimated $6.9 billion in output, 79,000 full- and part-time
jobs, and $2.2 billion in labor income.
 The Maine hospitality sector’s total economic contribution generated a fiscal impact
of an estimated $702 million in state and local taxes in 2018.
 The Maine hospitality sector accounts for about one out of 10 jobs in Maine, and 17
percent of taxable retail sales.
 The hospitality sector covers a broad range of occupations, which span a wide
spectrum of wages.

1
2

This report is an update to version 1.0, which was released in October 2018.
This project was conducted at the request of HospitalityMaine.

1

 Economic Contribution of Maine’s Hospitality Sector—October 2019 (Gabe and Crawley)

ECONOMIC CONTRIBUTION OF MAINE’S HOSPITALITY SECTOR

The hospitality sector is commonly defined to include hotels and motels, and restaurants
and bars. These businesses serve local residents (e.g., families celebrating a birthday at a
restaurant) as well as tourists to the area (e.g., visitors staying in a hotel). By this definition, the
hospitality sector is narrower in focus than the tourism industry—which also includes
transportation (e.g., gas stations, air travel), retail (e.g., souvenir stores) and recreational services.
In terms of the customers served, however, the hospitality industry is wider in scope than tourism
because hospitality encompasses “all” of the economic activity of hotels and motels, and
restaurants and bars—whereas tourism only counts the activity associated with customers from
outside the region.
The purpose of this study is to estimate the statewide economic contribution of Maine’s
hospitality sector. Economic contribution is defined as the output (i.e., sales revenue), employment
and labor income (i.e., payroll) associated with hospitality businesses in Maine, as well as the
multiplier effects due to the spending of these business (indirect impacts) and their employees
(induced impacts). The analysis is based on secondary data from Maine Revenue Services, the
U.S. Bureau of Labor Statistics, and the Maine Center for Workforce Research and Information.
Table 1 summarizes the statewide economic contribution of Maine’s hospitality sector in
2018. The direct output of $4.0 billion is the combined taxable retail sales of the “Restaurant”
($2.9 billion) and “Lodging” ($1.1 billion) sectors, as defined by Maine Revenue Services. The
direct employment of 59,000 workers is the combined “average” annual employment—including
full- and part-time workers—of the “Food Services and Drinking Places” (47,000 workers) and
2

 Economic Contribution of Maine’s Hospitality Sector—October 2019 (Gabe and Crawley)

“Accommodation” (12,000 workers) sectors; and the direct labor income of $1.3 billion is the
combined “total wages” of the “Food Services and Drinking Places” ($954,000,000) and
“Accommodation” ($319,000,000) sectors.

Table 1. Statewide Economic Contribution of Maine’s Hospitality Industry, 2018.
Direct

Multiplier Effects

Total Contribution

$4,023,381,735

$2,882,383,341

$6,905,765,076

Employment

58,999

20,442

79,441

Labor Income

$1,272,657,499

$958,103,492

$2,230,760,991

Output

Notes: Direct output is from Maine Revenue Services, and direct employment and labor income
are from the Maine Center for Workforce Research and Information. The multiplier effects are
estimated using the Maine IMPLAN model.

The multiplier effects shown in Table 1 are the additional output, employment and labor
income (i.e., wages and salaries) in the state that are supported by the purchases of businesses
(indirect impacts) and workers (induced impacts) that are connected to Maine’s hospitality sector.
The IMPLAN model, which is used to estimate the multiplier effects, is an input-output framework
that traces the flows of expenditures and income through the economy with a complex system of
accounts that are uniquely tailored to the region. Underlying these accounts is information
regarding transactions occurring among Maine businesses, the spending patterns of households,
and transactions occurring between Maine business and households and the rest of the world. Some
of the data sources used to calibrate the IMPLAN model include County Business Patterns of the
U.S. Census Bureau, Regional Economic Information System (REIS) data and input-output

3

 Economic Contribution of Maine’s Hospitality Sector—October 2019 (Gabe and Crawley)

accounts from the U.S. Bureau of Economic Analysis, and ES-202 statistics from the U.S. Bureau
of Labor Statistics.
Overall, the Maine hospitality industry has an annual economic contribution—including
multiplier effects—of an estimated $6.9 billion in output (i.e., sales revenue), 79,441 full- and parttime jobs, and $2.2 billion in labor income (i.e., payroll). Industry multipliers are found by dividing
the total economic contribution by the direct impact. For example, the hospitality sector has an
output multiplier of about 1.72 (i.e., $6.9 billion divided by $4.0 billion), which suggests that every
$1.00 in revenue directly associated with Maine’s hospitality businesses generates a total of $1.72
in overall statewide economic activity. This $1.72 in overall economic activity includes the $1.00
in revenue directly associated with the hospitality businesses and an additional $0.72 in economic
activity across other sectors of the Maine economy. The employment and labor income multipliers
are 1.35 and 1.75, respectively.
In addition to calculating the multiplier effects associated with the Maine hospitality
industry, the IMPLAN economic impact model also provides an estimate of the sector’s annual
state and local tax (i.e., fiscal) impact. The state and local taxes that are generated by the hospitality
sector’s total economic contribution—that is, $6.9 billion in output and $2.2 billion in labor
income—are an estimated $702 million.

4

 Economic Contribution of Maine’s Hospitality Sector—October 2019 (Gabe and Crawley)

Table 2. Hospitality Industry Employment and Taxable Retail Sales by Maine County, 2018.

County
Androscoggin County
Aroostook County
Cumberland County
Franklin County
Hancock County
Kennebec County
Knox County
Lincoln County
Oxford County
Penobscot County
Piscataquis County
Sagadahoc County
Somerset County
Waldo County
Washington County
York County

Hospitality Industry Employment
3,527
1,944
17,852
1,211
3,317
4,740
1,898
1,500
1,610
6,263
396
1,325
989
991
661
10,676

Hospitality Industry
Taxable Retail Sales
$192,102,054
$97,368,171
$1,180,116,555
$69,063,959
$314,933,676
$249,286,327
$132,890,166
$110,611,818
$101,825,948
$357,336,615
$22,769,407
$77,836,300
$60,608,414
$53,131,923
$36,146,416
$851,359,744

Notes: Taxable retail sales data are from Maine Revenue Services, and employment figures are
from the Maine Center for Workforce Research and Information.

Tables 2 and 3 show the distribution of (direct) hospitality employment and taxable retail
sales across Maine counties. Employment ranges from about 400 workers in Piscataquis County
to 18,000 workers in Cumberland County, and sales range from $23 million (Piscataquis) to $1.2
billion (Cumberland). Cumberland County accounts for over 30 percent of statewide hospitality
employment, while Cumberland, York and Penobscot Counties capture 65 percent of hospitality
employment in Maine.

5

 Economic Contribution of Maine’s Hospitality Sector—October 2019 (Gabe and Crawley)

Table 3. Hospitality Sector’s Importance to Employment and Sales by Maine County, 2018.

County
Androscoggin County
Aroostook County
Cumberland County
Franklin County
Hancock County
Kennebec County
Knox County
Lincoln County
Oxford County
Penobscot County
Piscataquis County
Sagadahoc County
Somerset County
Waldo County
Washington County
York County

% Total Employment in
Hospitality Industry
7.2%
7.3%
9.6%
11.4%
14.7%
7.9%
10.8%
13.7%
9.6%
9.0%
7.1%
8.5%
6.2%
8.4%
6.5%
14.6%

% Taxable Retail Sales in
Hospitality Industry
13.6%
13.4%
19.2%
20.9%
32.6%
13.4%
20.7%
26.0%
20.7%
14.2%
16.8%
18.6%
13.9%
17.3%
13.6%
31.6%

Notes: Taxable retail sales data are from Maine Revenue Services, and employment figures are
from the Maine Center for Workforce Research and Information.

The hospitality sector’s share of countywide employment ranges from 6 to 15 percent.
Hospitality accounts for more than one in ten jobs in Hancock (14.7 percent), York (14.6 percent),
Lincoln (13.7 percent), Franklin (11.4 percent) and Knox (10.8 percent) Counties. The hospitality
sector is responsible for over one-quarter of taxable retail sales in Hancock (32.6 percent), York
(31.6 percent) and Lincoln (26.0 percent) Counties. Statewide, the hospitality industry makes up
about 10 percent of overall employment and 17 percent of taxable retail sales.
The direct employment impact of 59,000 full- and part-time jobs crosses a wide range of
occupations. Tables 4, 5 and 6 present data on 40 occupations with the highest shares of U.S.
hospitality employment, which collectively account for over 96 percent of the sector nationally.
6

 Economic Contribution of Maine’s Hospitality Sector—October 2019 (Gabe and Crawley)

The top 3 occupations, which make up about 50 percent of U.S. hospitality employment, are food
preparation and serving workers, waiters and waitresses, and restaurant cooks. Table 4 shows
statewide wage data for the 40 occupations, while tables 5 and 6 present wage data for the Bangor
and Portland areas.
A few of the higher-paying occupations commonly found in the hospitality sector—based
on average wage data for the occupation in Maine—include food service managers, general and
operation managers, chefs and head cooks, and lodging managers. Along with the substantial
variation in wages shown across the occupations that make up the hospitality sector, there is
considerable variation within these occupations in Maine. For example, the average annual wage
for chefs in Maine is $52,200, but the 10th and 90th percentile annual wages in this occupation are
$32,490 and $75,440. Likewise, the 90th percentile annual wage of lodging managers in Maine is
$78,180, which is substantially higher than the average of $53,420. As shown in tables 5 and 6,
much of this variation within an occupation is associated with where a job is located. For example,
the 90th percentile annual wage of a bartender in the Portland area is $53,370, compared with a
90th percentile annual wage of $23,780 in the Bangor area.

7

 Economic Contribution of Maine’s Hospitality Sector—October 2019 (Gabe and Crawley)
Table 4. Key Occupations in the Hospitality Sector: Focus on Maine
Percent of U.S.
Hospitality Industry
22.9%
17.4%
9.2%
5.8%
3.8%
3.4%
3.4%
3.4%
3.2%
2.9%
2.8%
2.8%
2.2%
1.8%
1.5%
1.3%
0.9%
0.8%
0.7%
0.7%
0.6%
0.6%
0.5%
0.4%
0.3%
0.3%

Occupation Title
Combined food preparation and serving workers, including fast food
Waiters and waitresses
Cooks, restaurant
First-line supervisors of food preparation and serving workers
Bartenders
Cooks, fast food
Food preparation workers
Maids and housekeeping cleaners
Dishwashers
Hosts and hostesses, restaurant, lounge, and coffee shop
Dining room and cafeteria attendants and bartender helpers
Cashiers
Counter attendants, cafeteria, food concession, and coffee shop
Hotel, motel, and resort desk clerks
Driver/sales workers
Food service managers
Cooks, short order
Maintenance and repair workers, general
General and operations managers
Chefs and head cooks
Food servers, nonrestaurant
Janitors and cleaners, except maids and housekeeping cleaners
Cooks, institution and cafeteria
Security guards
First-line supervisors of housekeeping and janitorial workers
First-line supervisors of office and administrative support workers
Table is continued on the following page.

8

Maine
Average
Hourly
10.78
13.25
13.84
18.63
14.09
11.40
12.35
12.06
11.20
11.39
12.05
11.15
11.08
12.23
14.18
30.48
12.94
19.15
47.17
25.10
11.65
14.40
14.86
14.52
20.21
24.76

Maine
Average
Annual
22,430
27,550
28,780
38,740
29,320
23,700
25,690
25,090
23,290
23,700
25,060
23,180
23,040
25,440
29,500
63,410
26,910
39,840
98,100
52,200
24,230
29,940
30,910
30,200
42,040
51,500

Maine
10th %
Annual
20,810
20,810
20,940
23,390
20,810
20,810
20,820
20,820
20,810
20,810
20,810
20,810
20,810
20,820
20,820
39,190
20,820
25,410
33,810
32,490
20,810
21,160
22,520
21,880
28,050
33,430

Maine
90th %
Annual
25,300
41,140
37,990
59,360
47,440
29,170
34,630
31,090
27,470
27,070
34,740
26,530
25,630
30,680
44,500
99,960
36,240
58,730
178,200
75,440
29,670
40,650
40,540
40,710
60,890
72,610

 Economic Contribution of Maine’s Hospitality Sector—October 2019 (Gabe and Crawley)
Table 4. Key Occupations in the Hospitality Sector: Focus on Maine, continued.
Percent of U.S.
Hospitality Industry
0.3%
0.3%
0.3%
0.3%
0.3%
0.2%
0.2%
0.2%
0.2%
0.1%
0.1%
0.1%
0.1%
0.1%

Occupation Title
Bookkeeping, accounting, and auditing clerks
Office clerks, general
Bakers
Laundry and dry-cleaning workers
Light truck or delivery services drivers
Lodging managers
Baggage porters and bellhops
Sales representatives, services, all other
Secretaries and administrative assistants
Human resources specialists
Meeting, convention, and event planners
Training and development specialists
Market research analysts and marketing specialists
Accountants and auditors

Maine
Average
Hourly
18.84
16.51
14.03
12.25
16.28
25.68
11.77
27.76
17.86
28.36
22.62
26.13
33.02
34.04

Maine
Average
Annual
39,190
34,340
29,180
25,490
33,850
53,420
24,470
57,740
37,150
58,980
47,050
54,360
68,670
70,810

Maine
10th %
Annual
26,450
21,480
20,940
20,810
21,070
31,020
20,810
27,480
25,390
38,020
30,840
34,600
44,350
42,880

Maine
90th %
Annual
54,460
49,020
39,210
34,280
53,740
78,180
30,590
97,410
50,590
83,180
71,080
78,940
100,910
104,050

Notes. Data on the occupations’ percent of employment in the U.S. hospitality industry are from the National Employment Matrix of
the U.S. Bureau of Labor Statistics, 2018. Wage data are from the Maine Center for Workforce Research and Information, 2018.

9

 Economic Contribution of Maine’s Hospitality Sector—October 2019 (Gabe and Crawley)
Table 5. Key Occupations in the Hospitality Sector: Focus on Bangor Area
Percent of U.S.
Hospitality Industry
22.9%
17.4%
9.2%
5.8%
3.8%
3.4%
3.4%
3.4%
3.2%
2.9%
2.8%
2.8%
2.2%
1.8%
1.5%
1.3%
0.9%
0.8%
0.7%
0.7%
0.6%
0.6%
0.5%
0.4%
0.3%
0.3%

Occupation Title
Combined food preparation and serving workers, including fast food
Waiters and waitresses
Cooks, restaurant
First-line supervisors of food preparation and serving workers
Bartenders
Cooks, fast food
Food preparation workers
Maids and housekeeping cleaners
Dishwashers
Hosts and hostesses, restaurant, lounge, and coffee shop
Dining room and cafeteria attendants and bartender helpers
Cashiers
Counter attendants, cafeteria, food concession, and coffee shop
Hotel, motel, and resort desk clerks
Driver/sales workers
Food service managers
Cooks, short order
Maintenance and repair workers, general
General and operations managers
Chefs and head cooks
Food servers, nonrestaurant
Janitors and cleaners, except maids and housekeeping cleaners
Cooks, institution and cafeteria
Security guards
First-line supervisors of housekeeping and janitorial workers
First-line supervisors of office and administrative support workers
Table is continued on the following page.

10

Bangor
Average
Hourly
10.70
12.08
13.07
15.53
10.56
11.30
12.66
10.72
11.10
12.80
10.64
10.77
10.67
11.48
15.81
23.70
11.52
17.86
42.14
20.62
11.59
14.05
14.10
12.58
20.50
24.01

Bangor
Average
Annual
22,250
25,130
27,190
32,300
21,960
23,510
26,330
22,290
23,080
26,620
22,130
22,400
22,190
23,880
32,890
49,300
23,960
37,140
87,650
42,890
24,100
29,230
29,340
26,160
42,640
49,940

Bangor
10th %
Annual
20,810
20,810
20,890
20,940
20,800
20,810
20,810
20,810
20,810
20,810
20,800
20,810
20,810
20,820
21,270
31,140
20,810
23,540
28,000
33,690
20,810
20,980
22,100
20,820
32,690
34,350

Bangor
90th %
Annual
24,430
34,290
33,130
46,990
23,780
28,410
35,700
25,040
28,150
39,020
26,070
24,620
24,920
28,910
48,740
75,960
30,630
53,220
156,250
58,650
29,800
39,320
38,270
34,660
56,280
67,270

 Economic Contribution of Maine’s Hospitality Sector—October 2019 (Gabe and Crawley)
Table 5. Key Occupations in the Hospitality Sector: Focus on Bangor Area, continued
Percent of U.S.
Hospitality Industry
0.3%
0.3%
0.3%
0.3%
0.3%
0.2%
0.2%
0.2%
0.2%
0.1%
0.1%
0.1%
0.1%
0.1%

Occupation Title
Bookkeeping, accounting, and auditing clerks
Office clerks, general
Bakers
Laundry and dry-cleaning workers
Light truck or delivery services drivers
Lodging managers
Baggage porters and bellhops
Sales representatives, services, all other
Secretaries and administrative assistants
Human resources specialists
Meeting, convention, and event planners
Training and development specialists
Market research analysts and marketing specialists
Accountants and auditors

Bangor
Average
Hourly
17.77
15.81
12.78
11.48
15.05
25.60
NA
23.60
16.48
26.77
20.35
24.54
31.71
34.51

Bangor
Average
Annual
36,970
32,890
26,580
23,870
31,300
53,240
NA
49,090
34,290
55,690
42,320
51,050
65,960
71,780

Bangor
10th %
Annual
27,560
21,630
20,820
20,800
21,900
28,540
NA
31,170
21,520
41,470
28,220
36,090
44,100
41,400

Bangor
90th %
Annual
48,750
44,840
33,820
30,950
45,700
78,570
NA
75,050
47,550
73,800
60,760
66,350
90,500
139,350

Notes. Data on the occupations’ percent of employment in the U.S. hospitality industry are from the National Employment Matrix of
the U.S. Bureau of Labor Statistics, 2018. Wage data are from the Maine Center for Workforce Research and Information, 2018.

11

 Economic Contribution of Maine’s Hospitality Sector—October 2019 (Gabe and Crawley)
Table 6. Key Occupations in the Hospitality Sector: Focus on Portland Area
Percent of U.S.
Hospitality Industry
22.9%
17.4%
9.2%
5.8%
3.8%
3.4%
3.4%
3.4%
3.2%
2.9%
2.8%
2.8%
2.2%
1.8%
1.5%
1.3%
0.9%
0.8%
0.7%
0.7%
0.6%
0.6%
0.5%
0.4%
0.3%
0.3%

Occupation Title
Combined food preparation and serving workers, including fast food
Waiters and waitresses
Cooks, restaurant
First-line supervisors of food preparation and serving workers
Bartenders
Cooks, fast food
Food preparation workers
Maids and housekeeping cleaners
Dishwashers
Hosts and hostesses, restaurant, lounge, and coffee shop
Dining room and cafeteria attendants and bartender helpers
Cashiers
Counter attendants, cafeteria, food concession, and coffee shop
Hotel, motel, and resort desk clerks
Driver/sales workers
Food service managers
Cooks, short order
Maintenance and repair workers, general
General and operations managers
Chefs and head cooks
Food servers, nonrestaurant
Janitors and cleaners, except maids and housekeeping cleaners
Cooks, institution and cafeteria
Security guards
First-line supervisors of housekeeping and janitorial workers
First-line supervisors of office and administrative support workers
Table is continued on the following page.

12

Portland
Average
Hourly
11.23
13.95
14.41
20.86
15.88
12.43
12.60
12.34
11.25
11.43
11.61
11.85
11.15
12.54
14.66
34.21
13.90
19.98
55.78
26.02
12.51
14.52
16.14
15.08
21.84
25.52

Portland
Average
Annual
23,360
29,010
29,970
43,400
33,020
25,850
26,200
25,680
23,400
23,760
24,140
24,650
23,200
26,080
30,490
71,160
28,900
41,560
116,020
54,120
26,020
30,210
33,580
31,370
45,420
53,090

Portland
10th %
Annual
20,810
20,810
20,930
25,030
20,810
20,820
20,830
20,970
20,810
20,820
20,810
20,810
20,810
21,020
20,820
34,600
21,620
28,470
43,850
34,620
20,820
21,420
25,880
23,250
29,170
31,620

Portland
90th %
Annual
28,320
44,170
39,040
62,360
53,370
36,180
34,860
31,470
28,160
27,370
29,850
30,410
25,930
31,400
44,840
105,230
38,010
59,170
NA
74,320
35,790
41,110
42,520
41,130
63,790
75,100

 Economic Contribution of Maine’s Hospitality Sector—October 2019 (Gabe and Crawley)
Table 6. Key Occupations in the Hospitality Sector: Focus on Portland Area
Percent of U.S.
Hospitality Industry
0.3%
0.3%
0.3%
0.3%
0.3%
0.2%
0.2%
0.2%
0.2%
0.1%
0.1%
0.1%
0.1%
0.1%

Occupation Title
Bookkeeping, accounting, and auditing clerks
Office clerks, general
Bakers
Laundry and dry-cleaning workers
Light truck or delivery services drivers
Lodging managers
Baggage porters and bellhops
Sales representatives, services, all other
Secretaries and administrative assistants
Human resources specialists
Meeting, convention, and event planners
Training and development specialists
Market research analysts and marketing specialists
Accountants and auditors

Portland
Average
Hourly
20.16
17.58
15.47
12.68
17.19
26.15
11.85
31.67
19.37
29.74
21.89
27.92
32.61
37.74

Portland
Average
Annual
41,940
36,570
32,170
26,380
35,760
54,400
24,660
65,870
40,280
61,860
45,530
58,070
67,840
78,490

Portland
10th %
Annual
29,560
22,350
22,990
20,970
20,880
32,800
20,820
30,950
27,480
38,860
32,270
35,220
43,710
46,390

Portland
90th %
Annual
58,540
52,350
46,480
36,170
55,760
78,540
30,740
106,610
55,860
90,340
61,780
84,190
101,170
115,920

Notes. Data on the occupations’ percent of employment in the U.S. hospitality industry are from the National Employment Matrix of
the U.S. Bureau of Labor Statistics, 2018. Wage data are from the Maine Center for Workforce Research and Information, 2018.

13

 Economic Contribution of Maine’s Hospitality Sector—October 2019 (Gabe and Crawley)

SUMMARY
The Maine hospitality sector—defined to include hotels and motels, and restaurants and
bars—had a statewide economic contribution, including multiplier effects, of an estimated $6.9
billion, 79,000 full- and part-time jobs, and $2.2 billion in labor income in 2018. The economic
activity generated an estimated $702 million fiscal impact (e.g., state and local taxes) in 2018. The
hospitality sector accounts for about one out of ten jobs in Maine and 17 percent of taxable retail
sales. The hospitality sector covers a broad range of occupations, which span a wide spectrum of
wages.

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