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2 0 2 3 E C O N O M I C O U T L O O K F O C U S V O L . X X I X N O. I H O S P I TA L I T Y Restaurants still rebounding, but strong numbers overall B y L a u r i e S c h r e i b e r F or the most part, Maine's hospitality industry had a very good 2022, but restaurants are struggling to rebound from the pandemic a bit more than hotels, says Matt Lewis, president and CEO of HospitalityMaine. e data aren't in yet, but anecdotally, most members of the state's nonprofit restaurant and hotel trade group "were quite pleased with the year. We should celebrate the successes — but also be aware there are still challenges," he adds. One challenge was a shortage of labor — a problem expected to persist. "It's much more difficult to find a full-time staff," he says. "I think that challenge will persist next year." And some companies are still play- ing catch-up from the pandemic's damaging effects. "Not everyone is making the profits they would like," he says. "But there are improvements." As part of the effort to grow the employee pipeline, HospitalityMaine's apprenticeship program, launched several years ago, is looking to expand enrollment. at includes a partner- ship with the Maine Department of Corrections to prepare those released from prison for hospitality jobs. "e apprenticeship program has been wonderful for that," Lewis says. "I think we'd like to see more people." Overall, Lewis says he expects a successful 2023. "I think summer will be exception- ally strong," he says. "e data show that people view Maine as a great place to come and our repeat travel percentage is phenomenal." He continues, "My expectation is that 2023 will be an excellent year. Our companies have realized that there are ways to provide that famous Maine welcome with fewer employ- ees. But the workforce issue will be around for years to come." L O B S T E R F I S H E RY Burdensome regulations spur gloomy outlook among lobstermen B y L a u r i e S c h r e i b e r M aine's lobster industry is threat- ened by federal regulations that will require the fishery to reduce its risk to the endangered North Atlantic right whale. Recent federal legislation sets the regulations to take effect in 2028. "We've got a six-year reprieve, but we really don't know what's going to happen after that six years — and how big the cut's going to be," says Kristan Porter, president of the Maine Lobstermen's Association. "If you're running a business and don't know what's going to happen, how do you plan for your business?" Still, he adds, the six-year delay will "give us time to pursue all legal and leg- islative avenues to assure the long-term future of this fishery." In 2021, the National Marine Fisheries Service released a 10-year plan that requires the fishery to reduce its already minimal risk to the right whale. e association, arguing that the goal is unachievable and impossible for the F or this year's "outlook" fea- ture, Mainebiz reporters talked to leaders in a wide range of industries. Maine's business lead- ers have a host of worries going into 2023. Higher interest rates have already softened what had been a red-hot real estate market. Inflation has surged, and consumers and businesses alike are paying more for heating fuel, food and services. At the same time, businesses are grappling with both labor shortages and higher wages. Economists are saying recession is likely. Through all of this, businesses expect to be busy this year — with many investing in expansion and new products. Higher interest rates, inflation and the threat of a recession all weigh on businesses as they head into 2023 P H O T O / T I M G R E E N WAY Matt Lewis, president and CEO of HospitalityMaine, says finding employees remains a persistent challenge. JA N UA R Y 9 , 2 0 2 3 10

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