Portland had the wind at its back in the years before COVID-19. The city was buoyed by an influx of highly educated workers, a resurgent technology sector, an active construction industry and by Portland\u2019s robust food and beverage scene that attracted visitors from around the world.<\/p>\n
That hospitality sector collapsed during the pandemic, when restaurants and bars all shuttered indoor dining to contain the spread of the deadly virus. Portland\u2019s hospitality jobs never fully recovered and now the rebound has stalled. City economists warn that is an ominous sign for Portland\u2019s broader comeback.<\/p>\n
\u201cIt is difficult to imagine a resurrection of the Portlandia economy of the 2010s without a recovery in this industry,\u201d they wrote in a budget forecast last month<\/a>.<\/p>\n<\/p>\n Multnomah County\u2019s hospitality workforce shed nearly 35,000 jobs in April 2020, according to state data, a 50% plunge in the pandemic\u2019s first month. A similar decline took place across Oregon and across the country in response to the threat posed by COVID-19.<\/p>\n Business began bouncing back almost right away and by early 2023 Multnomah County had recovered almost 80% of the hospitality jobs it had lost. In most places, the rebound continued. But not in Portland.<\/p>\n Multnomah County\u2019s hospitality workforce remains 13% smaller than it was in 2019, according to data from the Oregon Employment Department, and hasn\u2019t grown at all in the last two years. In contrast, the statewide hospitality industry has fully recovered all the jobs it lost during the pandemic \u2014 if you exclude Multnomah County. <\/p>\n Though Portland lost some well-known restaurants in the pandemic years, lots of the city\u2019s favorites remain and many more well-regarded establishments have opened in recent years<\/a>. This past week, The New York Times hailed Portland<\/a> as one of \u201c52 Places to Go in 2026,\u201d describing it as \u201cone of the most culturally dynamic cities in the country.\u201d <\/p>\n The Times noted the pending arrival of the James Beard Public Market near Pioneer Square, a year-round market that will showcase Oregon\u2019s culinary bounty. Backers hope the market will provide a downtown draw similar to Seattle\u2019s Pike Place Market, and generate significant economic benefits.<\/p>\n There are other signs that Portland\u2019s bars and restaurants are coming back. The number of licenses to serve alcohol at bars, restaurants, hotels and brewpubs dropped by 15% between 2019 and 2023. But a 9% jump in licensed establishments last year erased most of the prior years\u2019 decline. <\/p>\n Still, the city is struggling from reputational damage it suffered during the pandemic, when crime and homelessness surged, and from a decline in business travel. While crime has fallen sharply over the past two years, homelessness continues to rise and many business leaders say the city\u2019s taxes are deterring investment.<\/p>\n Hospitality jobs aren\u2019t especially lucrative. They pay about $40,000 annually in Multnomah County, state figures show, a little less than half the average wage across all industries. But hospitality work plays a vital role for people entering the workforce, those who want part-time jobs and for some workers with limited English proficiency.<\/p>\n The hospitality sector is also central to Portland\u2019s identity. Residents and visitors savor Portland\u2019s reputation for finely crafted meals, drinks and desserts.<\/p>\n Hospitality also helped fill the city\u2019s coffers during the last decade, thanks to a 5% lodging tax paid on hotel rooms and short-term rentals. <\/p>\n \u201cIn the decade prior to the pandemic, (lodging tax) revenues more than doubled as tourism within the city thrived,\u201d Portland\u2019s economists wrote last month. \u201cHowever, this revenue stream has still not fully recovered post-pandemic.\u201d<\/p>\n The budget forecast notes that Portland hotel occupancy is up, modestly, but finds that room rates are down and so tax revenue is, too. The economists forecast lodging tax revenue of $25 million in the current fiscal year, 65% of the pre-pandemic peak, and they project that lodging revenue will probably remain depressed for at least another five years. <\/p>\n