The 2017 CFO Spotlight Survey attracted respondents from a number of industries in Phoenix and Tucson. We will highlight the hospitality segment here in terms of growth, risk factors, strengths and trends.
Survey respondents in hospitality came from an eclectic group of tourism and entertainment organizations as well as vendors and distributors. About 75% of respondents were based in Tucson. This group expressed mixed optimism for their businesses but felt much more confident about the economy. The state's economy is better than 12 months ago according to 75% of respondents, up from just 20% in 2016. A full 50% believed their city's economy is better than 12 months ago while another 50% said it was about the same. A clear improvement over 2016 when 40% said it was worse.[infogram id="2017_az_cfo_spotlight_survey___hospitality_assessment_of_city_economy" prefix="tnb" format="interactive" title="2017 AZ CFO Spotlight Survey - Hospitality assessment of city economy"]
Hospitality leaders called for more next generation leaders and better tax incentives to improve the business climate - followed closely by reduced regulatory costs. CFOs hoped that consumer confidence would remain high in 2017. To offset last year's flat prices, 75% of hospitality leaders were confident in their plans to increase prices in 2017. They also were less concerned about immigration policy than other industries, with 75% expecting little impact to their businesses compared to 67% expecting some impact last year.
AVERAGE SIZE: 240 employees
AVERAGE REVENUE: $15 million
CFO Says: “For our customers, we are offering easy access and mobile technology, updated websites, and lots of social media investment.”
Revenue in 2017
Will increase significantly: 12.5%
Will increase slightly: 50%
Optimism? Somewhat optimistic
25% somewhat uncertain.
Access to Cash? No problem!
Border Security? 75% little impact.
Environmental Issues? Nope, none.
Millennials? Warm to Cool.
Top Areas of Focus:
All CFOs surveyed in the hospitality industry plan to pass on the increasing costs of health care benefits to their employees. They have also focused on reducing or changing FTEs and shopping providers.