There are three main components of the hotel industry’s total economic impact:

• Direct impacts consisting of direct spending, in this case hotel operations, guest ancillary spending, and capital investment.
• Indirect impacts representing downstream supplier industry impacts, also referred to as supply chain impacts. For example, hotels require inputs such as energy and food ingredients. Also, many hotels contract with specialized service providers, such as for marketing, maintenance and equipment upkeep, cleaning, technology support, and accounting.
• Induced impacts occur as employees spend their wages in the broader economy. For example, as hotel employees spend income on rent, transportation, and food and beverage.