Across America, the stoves and ovens that deliver tasty meals to restaurant and hotel patrons are by and large fueled by natural gas. In addition to cooking, resorts and hotels also rely on natural gas to provide hot showers, clean linens, and emergency power generation during severe weather conditions.
From heated pools to Jacuzzis, saunas, patio heating and firepits, many of the unforgettable hospitality experiences we have come to expect during leisure times and on vacation are made possible due to the reliability and affordability of natural gas.
Natural gas keeps the U.S. hospitality sector going, opening endless possibilities for us all to make memories spending quality time with friends and family.
American Gas Association study finds natural gas valuable to hospitality sector
A natural gas economic impact study conducted by FTI Consulting, Inc. on behalf of the AGA highlights a number of findings supporting the importance of natural gas to hotels, restaurants, amusement parks, museums, resorts and other businesses in the hospitality industry.
With the U.S. hospitality sector directly consuming 387 billion cubic feet of natural gas per year, the fuel has been determined to be a driving force in keeping operating costs down, which aids businesses in a challenging market and leads to lower prices for consumers.
American consumers fear natural gas bans would impact hospitality prices
More than two-thirds of U.S. voters polled expressed concern that forced electrification in the hospitality sector would make hotel stays more expensive. This fear is backed by data.
Over the past decade, commercial and industrial customers have saved over $500B using natural gas. If these savings were no longer available, businesses would have no choice but to raise prices to make up the difference, particularly given that the hospitality sector already operates on razor-thin margins due to the high degree of competition across all subsectors.
And for hospitality sector workers, the worst-case scenario is even more dire, as wages or jobs could be cut as additional cost-saving measures. Employing 17.6M direct jobs and supporting an additional 9.2M in indirect and induced jobs, the hospitality sector represents a sizable (16.9%) slice of the American job market.
Natural gas supports the economy and GDP
Estimates indicate that mandated electrification of the U.S. hospitality sector would cost the American economy $23.2B in increased fuel costs from now through 2050. The impact on GDP would be even greater, as a natural gas ban could lower GDP by $46B and place substantial pressure on the job market.
In states with cold, harsh winters, the cost of switching from natural gas to electricity would impact the state economy at an even higher rate. In New York, where the cost of electrification is highest, the economy would lose over $8B through 2050.
Cold-weather states are not the only regions at risk. Texas, California, and Louisiana use more natural gas for hospitality than any other states, and states most reliant on tourism, such as Nevada, Hawaii, and Vermont, often see the largest share of their commercial and industrial natural gas consumption distributed across the hospitality sector.
Natural gas vital to food preparation
As the largest subcomponent of the U.S. hospitality sector, food service businesses rely heavily on natural gas for food preparation. According to a National Restaurant Association survey, 76% of restaurants use gas for cooking.
And in restaurants, it is not only the economic advantages that make natural gas the right choice for cooking. 90% of restaurateurs who cook with natural gas also believe natural gas appliances play a direct role in the quality and variety of their food.
Natural gas provides the hospitality sector with reliable, affordable energy
Businesses operating in the hospitality sector are reliant on reliable, affordable energy to be able to operate successfully year-round. In addition to the space heating and air conditioning needs that any business has, restaurants and hotels need fuel to cook and successfully manage one of the highest needs for hot water, which provides hot showers and heated pools for guests, along with clean towels and linens.
As a resilient, cost-effective fuel source, natural gas helps the hospitality sector survive slim profit margins while delivering affordable services and experiences to the American public.
Natural gas doesn’t just drive the U.S. hospitality sector forward. Natural gas builds the American economy.