Despite employing a staggering 1.4 million Texans and fueling an $112 billion economic engine, the state's hospitality industry is a landscape of sharp contrasts, where record revenue and growth collide with persistent labor shortages and wage gaps.
Key Takeaways
- In 2023, Texas hospitality industry employed 1,456,200 workers, representing 10.2% of total state employment with a 4.1% year-over-year growth
- Average hourly wage for food service workers in Texas hospitality was $14.67 in 2023, up 5.3% from 2022
- Texas hotels employed 198,500 people in 2023, with 42% in housekeeping and front desk roles
- Hospitality industry revenue in Texas reached $112.4 billion in 2023, up 8.7% from 2022
- Texas restaurant sales totaled $78.5 billion in 2023, comprising 70% of hospitality revenue
- Hotel revenue in Texas hit $18.2 billion in 2023, driven by 72% occupancy
- Texas visitor numbers reached 285.7 million in 2023, up 7.2% from 2022
- International tourists to Texas totaled 12.4 million in 2023, spending $14.8 billion
- Domestic leisure travelers accounted for 78% of Texas visits in 2023, averaging 4.2 nights stay
- Texas hotel room supply increased to 512,400 rooms in 2023, up 2.8% YoY
- Texas hotel occupancy rate averaged 68.4% in 2023, highest in Dallas at 71.2%
- Revenue per available room (RevPAR) in Texas hotels was $97.42 in 2023, up 9.1%
- Texas restaurant count reached 58,400 establishments in 2023, up 3.5% YoY
- Average annual sales per Texas restaurant was $1.34 million in 2023
- Full-service restaurants in Texas generated $52.7 billion sales in 2023
Texas hospitality grew strongly in 2023, adding many jobs and generating over $112 billion in revenue.
Economic Impact and Revenue
- Hospitality industry revenue in Texas reached $112.4 billion in 2023, up 8.7% from 2022
- Texas restaurant sales totaled $78.5 billion in 2023, comprising 70% of hospitality revenue
- Hotel revenue in Texas hit $18.2 billion in 2023, driven by 72% occupancy
- Tourism spending in Texas generated $92.6 billion in direct revenue in 2023
- Texas hospitality contributed $15.7 billion in state and local taxes in 2023
- Average daily rate (ADR) for Texas hotels was $142.50 in 2023, up 6.4% YoY
- Texas event and meeting revenue from hospitality reached $4.1 billion in 2023
- Bar and nightlife sector revenue in Texas was $9.8 billion in 2023, 12% growth
- Texas RV and camping hospitality generated $2.3 billion revenue in 2023
- Hospitality supply chain spending in Texas totaled $28.4 billion in 2023, supporting 145,000 indirect jobs
- Austin hospitality revenue surged 11.2% to $14.7 billion in 2023 due to tech boom
- Dallas-Fort Worth hospitality market revenue was $32.1 billion in 2023, 9% above national avg
- Houston hospitality revenue recovered to $22.4 billion in 2023, post-hurricane impacts
- San Antonio hospitality revenue hit $8.9 billion in 2023, boosted by military tourism
- Texas hospitality GDP contribution was 5.8% or $76.2 billion in 2023
- Online booking platforms captured 42% of Texas hospitality revenue in 2023, $47.2B
- Corporate travel spending on Texas hospitality was $6.7 billion in 2023, up 15%
- Wedding and event hospitality revenue in Texas totaled $3.4 billion in 2023
- Texas craft brewery hospitality revenue reached $1.9 billion in 2023, 18% growth
- Gaming hospitality (casinos near border) generated $1.2 billion in Texas 2023
- Sustainability investments in Texas hospitality totaled $890 million in 2023
- Inflation-adjusted hospitality revenue growth in Texas was 4.2% in 2023
- Texas hospitality export services (international visitors) revenue $5.6B in 2023
- Food delivery app commissions contributed $2.1 billion to Texas restaurant revenue in 2023
- Texas timeshare and vacation club revenue was $1.8 billion in 2023
- Boutique hotel revenue per property averaged $4.2 million in Texas 2023
Economic Impact and Revenue Interpretation
So while you're deciding between barbecue and Tex-Mex, remember you're not just picking dinner—you're voting for a $112.4 billion economic engine that keeps the state's lights on and the welcome mat extra thick.
Employment and Workforce
- In 2023, Texas hospitality industry employed 1,456,200 workers, representing 10.2% of total state employment with a 4.1% year-over-year growth
- Average hourly wage for food service workers in Texas hospitality was $14.67 in 2023, up 5.3% from 2022
- Texas hotels employed 198,500 people in 2023, with 42% in housekeeping and front desk roles
- Restaurant industry in Texas added 28,400 new jobs in 2023, driven by urban expansion in Austin and Dallas
- Hospitality workforce in Texas had a turnover rate of 72.5% in 2023, highest among service sectors due to labor shortages
- 15.3% of Texas hospitality employees were part-time in Q4 2023, with higher rates in bars at 28.1%
- Texas tourism-related jobs grew by 6.8% from 2022 to 2023, totaling 1,120,000 positions
- Female workers comprised 52.7% of Texas hospitality employment in 2023, earning 18% less than males on average
- Hispanic or Latino workers made up 41.2% of Texas hospitality workforce in 2023, concentrated in back-of-house roles
- Texas hospitality saw 45,200 job openings unfilled in 2023 due to skills gaps in culinary and management
- Entry-level hospitality jobs in Texas paid $12.50 median hourly in 2023, with 3.2% annual wage growth
- Texas gaming and entertainment venues employed 12,400 in hospitality roles in 2023, up 11% YoY
- 28% of Texas hospitality managers had bachelor's degrees in 2023, below national average of 35%
- Seasonal employment peaked at 156,000 jobs in Texas hospitality during summer 2023
- Texas RV parks and campgrounds supported 8,700 hospitality jobs in 2023, growing 7.4%
- Disability employment in Texas hospitality was 2.1% in 2023, with accessibility training covering 65% of firms
- Veteran hiring in Texas hospitality reached 4.5% of workforce in 2023, via Hire Heroes programs
- Texas hospitality apprenticeships trained 3,200 workers in 2023, focusing on culinary arts
- Unionized hospitality workers in Texas numbered 1.8% of total in 2023, mostly in Houston hotels
- Remote/hybrid roles in Texas hospitality admin grew to 5,200 in 2023, 12% increase
- Youth employment (16-24) in Texas hospitality was 22.4% of workforce in 2023
- Texas hospitality overtime hours averaged 4.2 per week per worker in 2023
- Multilingual workers (Spanish-English) comprised 38% of Texas hospitality staff in 2023
- Texas event staffing agencies supplied 67,000 temp hospitality workers in 2023
- Hospitality training programs graduated 12,500 from Texas community colleges in 2023
- Texas hospitality injury rate was 4.8 per 100 workers in 2023, above national 3.9%
- Gig economy hospitality workers (Uber Eats etc.) numbered 89,000 in Texas 2023
- Texas luxury resort employment grew 9.2% to 15,400 in 2023
- Motel and budget lodging employed 45,600 in Texas 2023, with 6% staff reduction post-COVID
- Texas convention center hospitality staff totaled 23,100 in 2023
Employment and Workforce Interpretation
For all its celebrated boom, the Texas hospitality industry reveals a stark, bustling stage where robust growth is fueled by a largely underpaid, high-turnover workforce, with women and Hispanic workers concentrated in lower-paying roles while the sector scrambles to fill thousands of open positions.
Hotels and Lodging
- Texas hotel room supply increased to 512,400 rooms in 2023, up 2.8% YoY
- Texas hotel occupancy rate averaged 68.4% in 2023, highest in Dallas at 71.2%
- Revenue per available room (RevPAR) in Texas hotels was $97.42 in 2023, up 9.1%
- Number of hotels in Texas reached 6,840 properties in 2023, with 1,200 new openings
- Luxury hotels in Texas (5-star) numbered 156 in 2023, ADR $285.60
- Budget hotels (economy segment) had 42% market share in Texas 2023
- Austin hotel development pipeline included 8,200 rooms under construction in 2023
- Texas resort hotels reported 65.7% occupancy and $210 ADR in 2023
- Extended-stay hotels in Texas grew to 420 properties, 15% revenue increase in 2023
- Houston hotel market RevPAR rose 10.2% to $102.30 in 2023
- Texas boutique hotels (independent) totaled 1,240, avg RevPAR $145 in 2023
- Airport hotels in Texas had 76% occupancy in 2023, driven by DFW and IAH
- Texas vacation rentals (Airbnb etc.) supplied 85,000 units, $3.2B revenue in 2023
- Historic hotels in Texas numbered 92, with 82% occupancy in 2023
- Texas casino hotels (tribal/nearby) had 12 properties, $450M revenue share
- Hotel construction costs in Texas averaged $285 per sq ft in 2023, up 7%
- Texas all-suite hotels grew 4.1% in room count to 112,000 in 2023
- Eco-certified hotels in Texas reached 340 in 2023, 12% occupancy premium
- Texas downtown hotels outperformed suburbs by 8% RevPAR in 2023
- Pet-friendly hotels in Texas totaled 2,100, generating $420M extra revenue 2023
- Texas timeshare resorts had 45 properties, 85% owner occupancy in 2023
- Conference hotels in Texas hosted 2,800 events, 92% capacity in 2023
- Texas RV resorts and campgrounds offered 78,000 sites, 68% occupancy 2023
- Upscale hotels in Texas (4-star) had ADR $185.20, 70.5% occupancy 2023
- Texas full-service hotels numbered 1,560, RevPAR $140.50 in 2023
- Limited-service hotels dominated with 4,200 properties in Texas 2023
Hotels and Lodging Interpretation
While Texas’s hotel scene expands with relentless, almost comical ambition—from a luxury boom in Dallas to a sea of budget rooms and even pet-friendly suites pulling in millions—the real story is that in the battle for the traveler’s dollar, everyone from boutique hotels to airport layovers is finding a way to thrive, proving the state’s hospitality isn’t just big, it’s cleverly diversified.
Restaurants and Foodservice
- Texas restaurant count reached 58,400 establishments in 2023, up 3.5% YoY
- Average annual sales per Texas restaurant was $1.34 million in 2023
- Full-service restaurants in Texas generated $52.7 billion sales in 2023
- Quick-service (fast food) outlets numbered 22,100 in Texas, 38% market share 2023
- Texas food trucks operated 7,200 units, $1.2 billion combined sales 2023
- Fine dining establishments in Texas totaled 1,890, avg check $85 in 2023
- Bar and tavern revenue in Texas hit $12.4 billion in 2023, 14% growth
- Austin restaurant scene added 450 new openings, $4.8B sales in 2023
- Dallas had 14,200 restaurants, highest concentration per capita in Texas 2023
- Houston BBQ joints numbered 1,250, generating $890M sales in 2023
- Texas Tex-Mex restaurants totaled 8,400, 22% of ethnic dining 2023
- Casual dining chains like Chili's originated in Texas, $18B sales state-wide 2023
- Delivery orders via apps reached 420 million for Texas restaurants in 2023
- Texas brewpub count was 450, serving 12M barrels annually in 2023
- Vegan/plant-based menu options grew to 45% of Texas restaurants in 2023
- Texas steakhouse sales totaled $2.9 billion in 2023, led by Ruth's Chris etc.
- Food hall developments in Texas reached 32 venues, 2.1M sq ft in 2023
- Catering services for events generated $1.7B in Texas restaurant revenue 2023
- Texas coffee shop count hit 6,200, $1.4B sales amid cafe boom 2023
- Seafood restaurants in Gulf Texas totaled 1,340, peak season sales up 11% 2023
- Ghost kitchens operated by Texas restaurants numbered 2,800 in 2023
- Texas farm-to-table restaurants grew to 1,120, 28% menu sourcing local 2023
Restaurants and Foodservice Interpretation
Everything from high-rolling steakhouse patrons to late-night food truck fiends is fueling a Texas-sized economy where the only thing growing faster than the restaurant count is our collective appetite for barbecue, queso, and a solid margarita.
Tourism and Visitors
- Texas visitor numbers reached 285.7 million in 2023, up 7.2% from 2022
- International tourists to Texas totaled 12.4 million in 2023, spending $14.8 billion
- Domestic leisure travelers accounted for 78% of Texas visits in 2023, averaging 4.2 nights stay
- Texas road trip tourism drew 56 million visitors in 2023, generating $18.2B spend
- Austin saw 32.1 million visitors in 2023, with 45% from out-of-state
- Dallas-Fort Worth welcomed 68.4 million tourists in 2023, 12% increase
- Houston tourism hit 24.7 million visitors in 2023, boosted by conventions
- San Antonio attracted 37.2 million day and overnight visitors in 2023
- Texas beach tourism (Gulf Coast) had 41 million visitors in 2023, $7.9B spend
- National park visitors in Texas Big Bend and Guadalupe totaled 1.8 million in 2023
- Texas wine tourism drew 5.6 million visitors to 500+ wineries in 2023
- Rodeo and festival attendance in Texas reached 15.4 million in 2023
- Business travelers to Texas numbered 42 million in 2023, spending $28.4B
- Family vacationers comprised 38% of Texas tourists in 2023, avg spend $1,250 per trip
- Adventure tourism (hiking, kayaking) attracted 8.9 million in Texas 2023
- Texas cultural site visits totaled 22.7 million in 2023, including museums and historic sites
- Millennial travelers (25-40) made up 34% of Texas visitors in 2023
- Senior tourists (65+) accounted for 19% of Texas visits, avg stay 5.1 nights in 2023
- Eco-tourism visitors to Texas grew to 3.2 million in 2023, $1.1B spend
- Texas sports tourism events drew 12.6 million attendees in 2023
- Culinary tourists seeking BBQ and Tex-Mex numbered 7.8 million in 2023
- Border tourism from Mexico to Texas had 9.1 million crossers in 2023
- Texas stargazing and dark sky tourism attracted 2.4 million in 2023
- Luxury travelers spent $4.2 billion on high-end Texas hospitality in 2023
- Repeat visitors to Texas were 62% of total in 2023
- Texas agritourism farm visits reached 4.7 million in 2023
- Convention attendees in Texas totaled 3.9 million in 2023
Tourism and Visitors Interpretation
Texas is essentially hosting a gloriously chaotic, year-long festival for 285.7 million guests who all, from luxury seekers to stargazers, seem hellbent on proving that everything really is bigger here, especially the bill they're happily footing.
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