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TED: COMING UP NEXT ON "ARIZONA HORIZON," CONSUMER CONFIDENCE IS AT A TEFL YEAR LOW AMID RISING GAS PRICES AND INTEREST RATES.

ECONOMIC INTERACT ON A POST IMMIGRATION SURGE, AND A NEW REPORT ON HOTEL OPERATIONS AND VISITOR SPENDING IN THE PHOENIX AREA.

THOSE STORIES AND MORE NEXT ON "ARIZONA HORIZON."

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TED: GOOD EVENING, AND WELCOME TO "ARIZONA HORIZON."

I'M TED SIMONS.

CONSUMER CONFIDENCE FELL TO A 12 YEAR LOW LAST MONTH AS CONFLICT IN THE MIDDLE EAST CONTINUES TO INCREASE FUEL PRICES FOR ALL GOODS AND SERVICES.

WE WELCOME ECONOMIST JIM ROUNDS, PRESIDENT AND CEO OF ROUNDS CONSULTING, GOOD TO SEE YOU HERE.

>> GOOD TO SEE YOU.

TED: 12 YEAR LOW IN CONSUMER CONFIDENCE.

DOES THAT SURPRISE YOU AT ALL?

>> NO, IT'S BEEN TRENDING DOWNWARD.

WEAVER LOOKING AT PAYING 5 TO $6 A GALLON FOR GAS.

DIESEL IS TERRIBLE.

WHEN THAT GOES UP, WE'RE PAYING MORE FOR OTHER GOODS THAT ARE SHIPPED.

INFLATION DISCUSSED AS WELL.

IT'S FINALLY IN CHECK.

IT NEVER WENT NEGATIVE.

AFTER WE HAD THE INCREASE OF 10, 12%, PRICES NEVER WENT DOWN.

WE'RE PAYING MORE NOW THAN WE WERE WHEN WE HAD THE PEAK IN THE INFLATION RATE.

WE'RE SEEING A SITUATION WHERE IT'S HITTING A LOT OF AMERICANS AND MAINLY MIDDLE AND LOWER INCOME INDIVIDUALS.

TED: I WAS GOING TO SAY IT SOUNDS LIKE IT'S DOWN ALL ACROSS ALL POLITICAL AFFILIATIONS AND ALL AGE GROUPS.

NO ONE IS HAPPY.

>> NO ONE'S HAPPY.

PEOPLE AREN'T AS OPTIMISTIC WHERE BUSINESS PROFITS ARE GOING.

PESSIMISTIC ABOUT ECONOMIC GROWTH AND THAT'S LOOKING AT IT FROM THE U.S.

LEVEL.

WE LOOK AT U.S.

LEVEL BUT OUR OPTIMISM LOOKS AT WHERE WE LOOK AT ARIZONA.

I CAN SMILE IN THE INTRODUCE TOWARDS THE END.

THE NATIONAL LEVEL, IF THEY MESS THINGS UP THERE, THEY'LL PULL US DOWN WITH THEM.

TED: THE ECONOMIC IMPACT ON THE WAR ON IRAN, FUEL PRICES, SEEMS LIKE THAT IS MAJOR FACTOR HERE.

>> I THINK SO.

IT'S SOMETHING THAT YOU ACTUALLY SEE EVERY DAY.

IT'S NOT LIKE A PROPERTY TAX BILL THAT YOU GET IN THE MAIL AT A CERTAIN TIME OF YEAR.

YOU'RE SEEING THAT EVERY WEEK.

YOU'RE SEEING THE PREVIOUS $40 THAT IT TOOK TO FILL UP THE CAR NOW AT 80 OR 90.

ONCE IT HITS 100, THAT'S WHEN I HEAR SOMEBODY SAY SOMETHING THEY CAN'T SAY ON TV ON THE OTHER SIDE OF THE PUMP, BUT IT'S A REAL PROBLEM, BUT THE PROBLEM ISN'T GOING TO BE IMPACTING THE UPPER INCOME PEOPLE.

THEY'LL ACCOMMODATE THE $5 A GALLON GAS, BUT THE LOWER INCOME INDIVIDUALS, AGAIN, WHEN IT IMPACTS GROCERIES, IT IMPACTS EVERYTHING THAT WE TRANSPORT.

IT IMPACTS WHERE WE DRIVE, AND ULTIMATELY IMPACTS OUR BUSINESS PROFITS, AND THAT WILL MEAN LESS INCOME, LOWER BONUSES.

TED: I WANT TO GET TO BUSINESS IN A SECOND HERE, BUT WITH INFLATION COMES THE FED SAYING WE CAN'T BE CUTTING RATES HERE, IF THE INFLATION IS AT OR NEAR 4%, AND IF YOU HAVE THE FED DOING, THAT YOU GOT MORTGAGE PROBLEMS, IT JUST SEEMS TO BUILD AND BUILD.

>> YOU KNOW, WE TALKED ABOUT THE FED SO MANY TIMES, AND I THINK I'VE BEEN CONSISTENT MORE THAN ANY OTHER CATEGORY, BY SAYING THIS HAS BEEN THE MOST INCOMPETENT FEDERAL RESERVE BOARD I'VE SEEN, WE KEPT RATES AT ZERO FOR TOO LONG, AND IT CAUSED PROBLEMS AND THEY RAISED RATES AND THAT CAUSED PROBLEMS, AND NOW THEY'RE SAYING INFLATION IS BECOMING A PROBLEM, MAYBE WE NEED TO START CONTROLLING IT A LITTLE BIT AND RAISING RATES.

WELL, IT'S A PROBLEM BECAUSE OF POLITICAL ISSUES.

IT'S NOT A PROBLEM BECAUSE OF IMBALANCES IN THE ECONOMY.

THEY'RE COMPLETELY MISSING WHY SOME OF THE INFLATION IS THERE, AND IF IT'S POLITICAL IN NATURE, RAISING THE RATES ISN'T GOING TO BE CHANGING THAT, THEY'RE GOING TO BE SLOWING ECONOMIC GROWTH IN OTHER AREAS AND CREATING OTHER IMBALANCES, IT'S TRULY SHOCKING.

TED: AND ALSO CREATING UNCERTAINTY.

BACK TO BUSINESS HERE, WE HEAR IT ALL THE TIME FROM BUSINESS FOLKS, THE LAST THING THEY WANT IS UNCERTAINTY.

MY GOODNESS, JIM, THERE IS UNCERTAINTY ALL ACROSS THE BOARD RIGHT NOW.

>> YEAH, UNCERTAINTY IN TERMS OF IS INFLATION GOING TO MAKE IT TOO EXPENSIVE FOR THE SMALL BUSINESS TO SURVIVE?

WE'RE GOING TO START HEARING ABOUT SMALL BUSINESS ISSUES NEXT.

WE'RE HEARING ABOUT LOWER INCOME INDIVIDUALS.

IT WILL SHIFT TO SMALL BUSINESSES AND SHIFT TO MIDDLE INCOME.

THAT'S WHY I THINK THE ECONOMY IS ALREADY IN A LITTLE BIT OF A HICCUP.

I DON'T THINK IT'S GOING TO BE ONE OF THE NORMAL RECESSIONS AND FOLLOWED BY A BOOM PERIOD.

I THINK IT'S GOING TO LOOK DIFFERENT THIS TIME.

TED: REAL QUICKLY, JOB OPENINGS ARE DOWN.

EXCUSE ME.

THE UNCERTAINTY IN BUSINESSES WITH JOBS, THAT HAS TO PLAY A FACTOR IN THESE FEWER JOB OPENINGS.

>> IT DOES.

IF YOU LOOK AT THE EMPLOYMENT DATA AND LOOK AT IT ON A MONTHLY BASIS, IT'S BEEN UP AND DOWN EVERY MONTH FOR ABOUT TWO YEARS, AND SO ECONOMISTS LOVE, LET'S CALL IT A U-SHAPED RECESSION, V-SHAPED RECESSION, I'VE BEEN CALLING IT A SKIPPING STONE RECESSION.

IT SEEMS LIKE A STONE SKIPPING ACROSS THE WATER.

FOR SOME STATES IT'S GOING TO SINK, FOR ARIZONA, I THINK WE'LL MAKE IT TO THE OTHER SIDE.

TED: FOR MORTGAGE RATES, INCREASING, THAT'S NOT GOOD FOR FIRST-TIME BUYERS.

ARE WE WAITING TO GET PAST THE GRAVEYARD OR WHAT?

>> IT'S ECONOMIC DOLDRUMS.

THAT'S WHY, IN THE PAST, EVEN WHEN WE HAD THE V-SHAPED RECESSIONS, WE FALL FAST AND WE KNOW IT AND COME OUT OF IT.

WE ALWAYS MISSED IT.

WE ALWAYS CALLED THE RECESSION AFTER WE WERE IN AND OUT OF IT.

I FEEL LIKE WE MIGHT BE IN THIS HICCUP PERIOD RIGHT NOW WITH THE DATA BEING WEAK, AND A BIG CHUNK OF THAT HAS TO DO WITH THE FACT WE ADDED 16 TRILLION TO THE NATIONAL DEBT SINCE THE BEGINNING OF THE DECADE.

WE'RE SCOOPING ECONOMIC ACTIVITY FROM THE FUTURE MOVING FROM NOW, IT'S MASKING THE POTENTIAL RECESSIONARY DATA POINTS, WE WOULD HAVE HAD A RECESSION ALREADY IF IT WASN'T FOR ALL THE EXTRA BORROWING.

TED: INTERESTING.

WHAT ABOUT ARIZONA?

IS THERE PESSIMISM IN ARIZONA LIKE OTHER PARTS OF THE COUNTRY?

>> ONLY BECAUSE PEOPLE ARE MISINTERPRETING THE DATA.

THE POPULAR THING TO SAY IS WE FOL47th IN THE COUNTRY IN TERMS OF JOB GROWTH.

WE MIGHT BE 47th ONE MONTH, AND JUMP TO 59 NEXT AND 42.

YOU CAN'T LOOK AT THE RANKINGS EXCEPT FOR LONGER TERM.

YOU ARE GOING TO HEAR A LOT ABOUT RANKINGS DURING THE POLITICAL PERIOD WHEN SOMEBODY IS DOING A GOOD OR BAD JOB.

I PLAN ON CALLING THOSE OUT WHEN I CAN.

I HATE IT WHEN PEOPLE PURPOSELY MISUSE DATA.

TED: YOU HAVE THE RECEIPTS READY AND READY TO GO.

WHEN ALL OF THIS, HOPEFULLY, EVENTUALLY, ALL OF THIS WILL BLOW OVER.

WE'LL GET BACK TO REGULARITY, MAYBE INTEREST RATES WILL FALL, WHEN THE SKIES CLEAR, ARIZONA IS IN GOOD SHAPE, ISN'T IT?

>> ARIZONA IS GOING TO BE NUMBER ONE IN JOB GROWTH AND HIGH WAGE JOB GROWTH BECAUSE ALL THE TSMC ACTIVITY, THE AMKOR, THE OTHERS, WE HAVEN'T BEEN ADDING THE JOBS YET.

WE'RE SLOW IN TERMS OF MANUFACTURING JOBS AND OTHER PROFESSIONAL SERVICES, WHEN THOSE HIT, WE'RE GOING TO JUMP WAY UP.

WE HAD STRONG GROWTH COMING OUT OF COVID AND IT FLATTENED OUT A LITTLE BIT AND THAT GIVES THE IMPRESSION WE'RE NOT DOING WELL, BUT DID BETTER THAN THE REST OF THE COUNTRY.

A LOT OF OUR ANTICIPATED GROWTH, AND IT'S NOT ANTICIPATED, WELL, IT'S ANTICIPATED BECAUSE WE KNOW WHAT THE NUMBERS ARE, WE'RE GOING TO BE SEEING THIS IN OUR FUTURE.

ONCE WE GET THROUGH THE ECONOMIC DOLDRUMS, NEXT YEAR, YEAR AND A HALF, MAYBE TWO YEARS, WE'LL HAVE TO SEE IF WE CAN CONTINUE TO MANAGE OUR STATE WHEN YOU START SEEING THE EXTRA REVENUES COME IN, WE DON'T SEE ANYTHING STUPID WITH THE MONEY.

TED: JIM, HOLY SMOKES.

>> I'M AN OPTIMISM.

TED: JIM ROUNDS, ROUNDS CONSULTING, GOOD TO SEE YOU.

>> THANK YOU.

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TED: NEW RESEARCH SHOWS THAT THE POST-PANDEMIC IMMIGRATION SURGE BOOSTED ECONOMIC GROWTH IN THE U.S.

WITHOUT DISRUPTING OPPORTUNITIES FOR U.S.

BORN WORKERS.

INDEED, THE STUDY SUGGESTS IMMIGRANT WORKERS AND THOSE BORN IN THE U.S.

COMPLEMENTED EACH OTHER MORE THAN THEY COMPETED IN THE JOB MARKET.

JOINING US IS EDWARD VARGAS FROM ASU SCHOOL OF TRANSBORDER STUDIES, GOOD TO HAVE YOU HERE.

>> GOOD TO BE HERE.

TED: THE NEW RESEARCH, I NEVER THOUGHT ABOUT THIS, THERE WAS OBVIOUSLY A SURGE AFTER THE PANDEMIC, EVERYONE OUT, INFLATION GOING, BUT THERE WERE A LOT OF IMMIGRANTS COMING HERE AS WELL?

>> THAT'S RIGHT.

ESTIMATED 6.5 MILLION IMMIGRANTS CAME FROM 2021 TO 2024, WHICH IS THE TIME WHEN THIS STUDY WAS TAKING PLACE.

WHAT'S INTERESTING ABOUT THIS PARTICULAR ERA.

6.5 MILLION IS ONE OF THE LARGEST INCREASES IN MIGRANTS INTO THIS COUNTRY, THE WAY THAT PEOPLE CAME HERE, WHICH IS DIFFERENT THAN THE PAST.

TED: TALK ABOUT THAT.

>> WELL, WHAT WE BEEN THESE OR SURGE MIGRANTS IS THEY CAME HERE AND WERE GRANTED WORK PERMITS RIGHT AWAY AS THEY WHITE THEIR TIME IN ASYLUM CASE.

THESE ARE TYPICALLY FOLKS SEEKING ASYLUM.

SO THEY CAME INTO A PORT OF ENTRY INTO TEXAS OR FLORIDA.

SOME OF THE GOVERNORS DECIDED, IT'S A GOOD IDEA.

LET'S SEND THESE FOLKS TO DEMOCRATIC STRONG HOLDS AND PLACES UP NORTH THAT HAVE SANCTUARY CITIES.

THERE WAS A POLITICAL PIECE THAT'S IMPORTANT TO UNDERSTAND IN TERMS OF SENDING MIGRANTS TO EVERYWHERE FROM CAPE COD TO MARTHA'S VINEYARD AND BECAME A POLITICAL TOOL.

TED: BUT IT BOOSTED -- RESEARCH SUGGESTS THAT IT BOOSTED GROWTH, BUT THERE WAS LITTLE DISRUPTION TO U.S.

WORKERS.

HOW CAN THAT BE?

WITH 6.5 COMING IN.

>> IT SHOWED HOW ELASTIC THE PARTICULAR LABOR MARKETS WERE.

THESE FOLKS CAME IN AT A TIME WHERE THERE WAS STIMULUS MONEY THAT WAS OCCURRING.

LARGE NUMBER OF PEOPLE WHO MAYBE MOVED ON FROM THEIR PARTICULAR ECONOMY, AND WHERE WE SAW THE BIGGEST GAINS WERE IN THE HOSPITAL INDUSTRY, LEISURE INDUSTRY AND IN THE HEALTH SECTOR.

AS INDIVIDUALS ARE AGEING OUT OF THE WORKFORCES, NEW FOLKS WERE ABLE TO STEP IN RIGHT AWAY.

TED: AND NOT NECESSARILY TAKING JOBS FROM U.S.

WORKERS.

>> THEY COMPLEMENTED.

IN THE PLACES THAT WERE STUDIED.

WHILE THERE WAS RENT INCREASE, WAGES INCREASED FOR NATIVE WORKERS WHO HAD THE SAME LEVEL OF EDUCATION, AND THAT'S IMPORTANT PIECE TO THIS.

TED, WHAT'S IMPORTANT ABOUT THIS CASE IS THAT IT SHOWS HOW IMMIGRATION POLICY, IN A VERY NATURAL ENVIRONMENT, BECAUSE NOBODY EXPECTED SOMETHING LIKE THIS TO HAPPEN.

SO WHAT WOULD HAPPEN IF WE WERE ABLE TO GIVE PEOPLE ACCESS TO WORK PERMITS TO BE ABLE TO GO TO THE ECONOMY.

TED: FROM A STUDY, APPARENTLY EQUIVALENT TO EACH MIGRANT ADDING 0.4, ADDING JOBS AS OPPOSED TO THE NARRATIVE WHICH SAYS THEY ARE TAKING JOBS.

>> NO, WE SAW INCREASES IN THE GDP, WHICH IS IMPORTANT FOR THIS PARTICULAR STUDY.

AGAIN, WHAT THE RESEARCH SHOWS IS IN THIS SITUATION, THESE WORKERS WERE COMPLEMENTARY TO NATIVE WORKERS.

TED: AND NATIVE WORKERS APPARENTLY SAW INCREASE IN WAGES DURING THIS TIME?

>> CORRECT.

TED: OKAY, MY QUESTION IS, THIS IS AN INTERESTING STUDY, A VERY UNUSUAL TIME WHEN THE COUNTRY ESSENTIALLY SHUT DOWN AND COMES BACK OPEN, AND THE GOVERNMENT THROWING MONEY AT EVERY -- LET'S GET THINGS MOVING, IS THIS A CASE STUDY OR A ONE-OFF STUDY?

>> I THINK THIS IS A PARTICULAR PERIOD OF TIME THAT'S A VERY -- I THINK FOR THE MOST PART AS SOMEONE WHO STUDIES RESEARCH AND POLICY, A NATURAL EXPERIMENT, WHAT CAN HAPPEN WHEN PEOPLE ARE PROVIDED TO WORK.

IT'S VERY IMPORTANT HERE.

TED: IS THERE A POINT WHICH 6.5 MILLION, IF IT WERE 7.5, 8.5, IS THERE A BREAKING POINT WHERE IT DOESN'T BREAKEVEN?

>> WE DON'T KNOW.

WE NEVER HAD THIS HAPPEN IN THE HISTORY OF OUR COUNTRY.

THAT'S WHAT'S IMPORTANT ABOUT THE RESEARCH.

ANOTHER IMPORTANT ASPECT OF THE STUDY IS THE WAY THEY WERE ABLE TO DO THE STUDY AND PULL DATA TO UNDERSTAND, AGAIN, WHERE CAN I PUT TOGETHER DEPARTMENT OF JUSTICE DATA WITH CURRENT POPULATION SURVEY DATA.

THE WAY THEY WERE ABLE TO EXECUTE THE PROJECT IS INNOVATIVE.

TED: THE RENT INCREASE WASN'T AS HIGH AS SOME PREDICTED BECAUSE SO MANY OF THE IMMIGRANTS STAYED IN SHELTERS, STAYED WITH FAMILIES, THESE THINGS.

>> CORRECT.

STAYED WITH FRIENDS, THIS IS THE ALL-TIME LOW FOR INTEREST RATES.

WHAT COULD HAVE BEEN A TIME WHERE PEOPLE WERE BUYING SECOND OR THIRD HOME AND RENTING IT OUT FOR A WHILE AS PEOPLE NEEDED HOUSING, THAT ALSO HAPPENED DURING THIS TIME.

TED: NET MIGRATION IS AT OR NEAR ZERO AS YOU WELL KNOW.

IT WAS A BIT OF A SHOCK TO THE ECONOMY WITH COVID AND COMING OUT OF COVID.

IS IT A BIT OF A SHOCK TO THE ECONOMY NOW WITH NET MIGRATION SO LOW?

>> WHAT WE'RE SEEING IS ALWAYS PEOPLE LEAVING THE WORKFORCE, PARTICULARLY IN TEXAS AND OTHER STATES WHERE IMMIGRATION ENFORCEMENT HAD MADE IT REALLY HARD FOR PEOPLE TO LIVE IN THOSE STATES.

WHERE THIS IS HAPPENING, WE'RE ALSO SEEING A SHARP INCREASE IN JOBLESSNESS, UNEMPLOYMENT, SO ON AND SO FORTH.

I WANT TO BE VERY CLEAR THAT WHERE WE'RE SEEING DECREASES NOW BECAUSE OF IMMIGRATION ENFORCEMENT, PEOPLE ARE FEELING IT HARDER.

TED: INTERESTING.

SO BOTTOM LINE, WHAT DO WE TAKE FROM THIS?

YOU TALKED ABOUT HOW THIS IS A SNAPSHOT AND SOMETHING YOU CAN WORK ON, WHAT DO WE TAKE FROM THIS RESEARCH?

>> WELL, WHAT WE TAKE FROM THE RESEARCH IS WE NEED IMMIGRANTS.

WE NEED PEOPLE TO COME HERE, TO WORK HARD, TO PUT INTO OUR SYSTEM.

THESE FOLKS CREATE JOBS, THEY ARE LIKELY TO BE ENTREPRENEURIAL, AND IT LEADS TO -- IT BASICALLY BENEFITS EVERYONE.

TED: IT'S AN ELECTION YEAR, AND HEARING A LOT OF THIS PARTICULAR NARRATIVE, IS THESE FOLKS, COMING AND TAKING THINGS FROM NATIVE-BORN PEOPLE.

YOU'RE SAYING -- THE RESEARCH DOESN'T SAY THAT'S THE CASE, ESPECIALLY DURING THIS TIME PERIOD, BUT ONCE THINGS SETTLE DOWN, COULD THAT POSSIBLE LEEB THE CASE?

>> FOR THE MOST PART, AMERICANS ARE SEEING POCKETBOOK ISSUES AND THIS STRETCHES THEIR POCKET.

THEY'RE GOING WITHOUT GOING TO THE DOCTOR, SPLITTING UP MEDICATIONS, THEY ARE STRUGGLING TO MAKE IT THROUGH.

THE EVIDENCE AND RESEARCH SHOWS IS IMMIGRANTS, IF DONE RIGHT, A POLICY THAT ALLOWS WORKERS TO COME HERE AND WORK LEGALLY, IT WILL IMPROVE THE ECONOMY.

TED: EDWARD VARGAS, SCHOOL OF TRANSBORDER STUDIES AT ASU, VERY INTERESTING REPORT, THANK YOU FOR COMING.

>> THANK YOU FOR HAVING ME.

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TED: THE HOSPITALITY INDUSTRY IN PHOENIX IS BOOMING, FUELING BILLIONS OF DOLLARS IN ECONOMIC ACTIVITY AND SUPPORTING TENS OF THOUSANDS OF JOBS IN THE CITY.

PHOENIX ALSO OUTRANKS NEW YORK AND DALLAS FOR NEW HOTEL PROJECTS IN THE WORKS.

ROSANNA MAIETTA IS PRESIDENT AND CEO OF THE AMERICAN HOTEL AND LODGING ASSOCIATION.

WELCOME TO PHOENIX.

GOOD TO HAVE YOU HERE.

>> THANK YOU, GOOD TO BE HERE, TED.

TED: YOU'RE NATIONAL, BUT YOU'RE HERE.

THIS REALLY IS BOOMING HERE, ISN'T IT?

>> PHOENIX IS REMARKABLE WHEN IT COMES TO CITIES DOING SO WELL WITH HOTEL DEVELOPMENT AND TRAVEL, JOB CREATION, AND THAT'S THANKS TO THE ENVIRONMENT THAT IS REALLY DRIVEN A LOT OF GROWTH, TIED TO THE MANUFACTURING.

TED: WHEN YOU SAY ENVIRONMENT, DO YOU MEAN JUST THE SOCIAL ENVIRONMENT?

DO YOU MEAN THE BUSINESS ENVIRONMENT?

>> BOTH.

THERE'S SO MUCH TO DO IN PHOENIX AND ARIZONA IN GENERAL.

TRAVELERS WANT TO COME HERE, THERE'S A GREAT FOOD SCENE, GREAT EVENTS.

HAVE YOU GREAT SPORTING.

YOU HOSTED THE SUPER BOWL NOT TOO LONG AGO, SO ON THE LEISURE SIDE THERE'S A LOT TO DO, BUT YOU'RE ALSO SEEING THIS ECONOMIC DEVELOPMENT.

SEMICONDUCTORS, MANUFACTURING, TECH, ALL OF THAT DEVELOPMENT IS SPURRING THE NEED FOR MORE HOTELS.

TED: SO THE VERY MUCH ON THE PHOENIX HOSPITALITY INDUSTRY.

HOW IS HOSPITALITY INDUSTRY DEFINED?

>> IT IS THE BROADER TRAVEL TOURISM TIED TO HOTEL DEVELOPMENT.

SO HOTELS ARE DOING WELL, THE BROADER COMMUNITY IS DOING WELL, IF YOU THINK ABOUT IT, A HOTEL OPENS UP, A SUPERMARKET OPENS AND A COFFEE SHOP, IT IS AN ECOSYSTEM THAT SUPPORTS ITSELF.

TED: WHEN THEY SAY THE HOTEL IS THE BACKBONE OF ARIZONA'S ECONOMY, YOU SAY INDEED?

>> ABSOLUTELY.

ABSOLUTELY.

THAT'S WHY IT'S SO IMPORTANT TO CONTINUE TO SEE HOTELS THRIVE, AND SO POLICIES THAT WILL ALLOW US TO SUPPORT BOTH JOB CREATION.

THERE'S 40,000 JOBS SUPPORTED IN PHOENIX ALONE, AND 220,000 ACROSS THE STATE.

THERE'S A LOT THAT COMES OUT OF JUST THE JOBS THAT THE INDUSTRY PROVIDES AND SUPPORTS.

TED: YEAH, AND SOME OF THESE NUMBERS, 42,000 JOBS, 10,000 HOTEL JOBS.

$7.2 BILLION GENERATED IN ECONOMIC ACTIVITY.

ADDS ABOUT $1.1 BILLION IN FEDERAL, STATE AND LOCAL TAX REVENUE.

FOR COMMUNITIES THAT HAVE LOTS OF HOTELS, YOU THINK OF THE SCOTTSDALES OF THE WORLD, AND PHOENIX-AREA COMMUNITIES THAT DON'T, BEDROOM COMMUNITIES, HOW BIG A DIFFERENCE IS THAT?

>> LOOK, I THINK EVERY COMMUNITY ZONES APPROPRIATELY.

YOU WILL FIND A HOTEL IN A RESIDENTIAL AREA IF THERE'S A NEED IN THAT PARTICULAR JURISDICTION, BUT I THINK WHAT YOU SAID IS IMPORTANT.

YOU TAKE A SCOTTSDALE, THERE IS SO MUCH DEVELOPMENT HAPPENING RIGHT NOW BECAUSE IT IS ALSO A DESTINATION.

PEOPLE WANT TO LIVE THERE, BUT THERE ARE THINGS TO DO AND SEE.

TED: AND HOTEL GUESTS SPEND $4 BILLION, EQUATES TO $641 A NIGHT.

IS THAT EVERYTHING, OR IS THAT THE HOTEL?

>> I THINK THAT WOULD LIKE FOR THAT TO BE ONLY AT THE HOTEL.

EVERY GUEST AT HOTEL IS SPENDING $2.5 IN THE COMMUNITY.

THE BILLION DOLLARS IN TAX REVENUE THAT THE HOTELS GENERATE, THAT GOES BACK INTO THE COMMUNITIES, IT SUPPORTS INFRASTRUCTURE DEVELOPMENT, SOCIAL SERVICES, SO REALLY THE COMMUNITY IS A BENEFICIARY OF ALL THAT TAX REVENUE.

TED: IS THAT WHAT THE REPORT MEANS IS HOTELS ARE CENTERS OF OPPORTUNITY?

>> EXACTLY.

TED: WE DON'T THINK ABOUT THAT?

>> IT'S A MISSED OPPORTUNITY.

WHAT WE WANT TO SEE IS MORE TRAVEL.

YOU HEARD FROM SOME OF YUR OTHER SPEAKERS TODAY, DESPITE HOW PEOPLE FEEL, THEY WANT TO GET OUT AND THEY WANT TO TRAVEL, WHETHER THAT MEANS A STAYCATION OR LEAVING THE STATE.

>> THE HOSPITALITY INDUSTRY, IN WHAT WAYS DOES IT NEED TO ADAPT, AS WE MOVE FORWARD IN THE FUTURE?

OBVIOUSLY, YOU CAN'T STAND STILL, SOME CHANGE HAS TO HAPPEN, WHAT ARE YOU SEEING OUT THERE?

>> A LOT OF THINGS.

I KNOW RIGHT NOW, HOTELS ARE TRYING TO ADAPT TO THE WAY CONSUMERS TRAVEL.

SINCE COVID, YOU'VE SEEN MORE PEOPLE TRAVELING ON A MONDAY OR GOING WEEKEND, AND WORKING REMOTE, SO THEY TAKE THE EXTRA DAY.

THEY STAY IN THE HOTEL IN THE LOCATION THEY'RE IN AND WORK FROM THE HOTEL ROOM.

YOU'RE SEEING A LOT MORE PEOPLE FOCUSED ON EXPERIENCES, SO HOTELS ARE TRYING TO OFFER PACKAGES THAT ARE TIED TO EXPERIENTIAL ADVENTURE AND YOU CAN DO THAT THROUGH THE HOTEL.

IT'S REALLY ABOUT ADAPTING TO WHAT A CONSUMER WANTS.

SO MANY MORE PEOPLE ARE TRAVELING WITH PETS.

YOU ARE STARTING TO SEE THAT AS AN OPTION WHEN YOU ARE BOOKING HOTELS.

TED: YOU MENTIONED COVID.

THE COVID ERA PUT A STOP PRACTICALLY ON BUSINESS TRAVEL.

IS THAT PICKING UP?

ARE BUSINESS VISITORS STILL THERE?

>> BUSINESS TRAVEL IS DIFFERENT.

FOR SURE WE'D LIKE TO SEE MORE GROUP AND CONVENTION BUSINESS, ESPECIALLY IN DOWNTOWN PHOENIX.

I HOSTED CONVENTIONS THERE MYSELF, IT'S A GREAT VENUE.

IT IS COMING BACK IN SOME MARKETS AND I THINK THAT'S WHERE PHOENIX IS UNIQUE.

THE FIRST TWO QUARTERS PHOENIX DID REALLY WELL WHEN IT DIME TRAVEL AND TOURISM.

TED: AND YOU MENTIONED PHOENIX BEING UNIQUE.

THAT SAID, ARE THERE BEST PRACTICES.

OTHER AREAS PHOENIX COULD LOOK AT AND GO, WE NEED TO DO MORE OF THAT?

>> I WOULD POINT TO DALLAS.

FIRST IN THE COUNTRY, FIRST PIPELINE DEVELOPMENT, PHOENIX IS CLOSE THIRD.

VEGAS IS ALSO ANOTHER MARKET WHERE I WOULD POINT TO A PLACE THAT HAS BOTH SPORTING VENUES, A LOT OF GREAT FOOD AND A LOT OF EXPERIENCES THAT YOU CAN BENEFIT FROM WHEN YOU ARE TRAVELING, BUT I THINK PHOENIX IS RIGHT THERE.

YOU HAVE A LOT TO OFFER.

TED: A LOT TO OFFER AS LONG AS IT'S NOT JULY.

>> WELL, THERE'S THAT.

BUT PEOPLE LIKE THE DRY HEAT.

TED: OKAY.

I'LL WRITE THAT DOWN.

ROSANNA, GOOD TO HAVE YOU HERE.

ROSANNA MAIETTA, AMERICAN HOTEL AND LODGING ASSOCIATION.

NEW REPORT ON PHOENIX HOSPITALITY AND THINGS ARE GOING QUITE WELL THANK YOU VERY MUCH.

GOOD TO HAVE YOU, THANK YOU.

>> THANK YOU.

TED: THAT IS IT FOR NOW.

I'M TED SIMONS.

THANK YOU FOR JOINING US.

YOU HAVE A GREAT EVENING.