Mainebiz

V O L . X X I X N O. I I I F E B R UA R Y 6 , 2 0 2 3 6 FAME's acting CEO gets nod Carlos R. Mello, who has served as acting CEO of the Finance Authority of Maine since February 2021, has been nominated by Gov. Janet Mills to take over the role permanently. Mills also nominated Blue Keim, managing director of Sappi North America's Westbrook facility, for a second term on the FAME board of directors. Keim was first appointed to the board by Mills in 2019. Both nominations are for four-year terms and must first be reviewed by the Maine Legislature's Joint Standing Com- mittee on Innovation, Develop- ment, Economic Advancement and Business before being confirmed by the Maine State Senate. Mello took over as acting CEO in Febru- ary 2021 after the retirement of Bruce Wagner. Home sales slide, but price increases A year-long slide in single-family home sales that began in January 2021 persisted through 2022, result- ing in a decline in sales of 17.49% over the past 12 months. Home prices, however, continue to rise. e median sales price for 2022 reached $335,000 — up 12.04% over 2021. e MSP indicates that half of the homes were sold for more and half sold for less. In 2022, 16,800 homes sold and a median sales price of $335,000, down 8.5% since its peak in June, said Carmen McPhail, 2023 president of the Maine Association of Realtors. Overall, the numbers reflect the impact of higher interest rates, a typical fourth-quarter seasonal slowdown and a continued short- age of housing for sale. N O T E W O R T H Y S T A T E W I D E The U.S. Environmental Protection Agency said it will conduct compre- hensive reviews of completed cleanup work at two National Priority List Superfund sites in Maine this year. Five-Year reviews will be competed at McKin Co. in Gray and West Site/ Hows Corner in Plymouth. B U S I N E S S M A I N E Business news from around the state S T A T E W I D E B R I E F Hospitality industry predicts 2023 challenges will mirror 2022 B y L a u r i e S c h r e i b e r While some tourism businesses are optimistic that the 2023 season will be better than 2022, just over half think visitor numbers, revenue and the labor crunch be about the same. The Maine Tourism Association recently polled its members about how 2023 is shaping up for Maine's tourism businesses. According to CEO Tony Cameron, 52% of members responding to the survey said they think 2023 business will be same as last year. Some 30% said business would be better than last year. But 15% think it will be worse. Staffing challenges were predicted to be the same as last year, according to 59% of respondents, while 16% say it will be the worse. Only 9% said it could be easier to hire staff than it was in 2022. "2022 was a good year for most tourism businesses and I am pleased to see that they are predicting similar numbers for this year," said Cameron. "It is unfortunate that rising costs and staffing shortages continue to be major impediments to greater success. The good news is that our members believe, and all evidence confirms, that the demand is there from visitors." For 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, Matt Lewis, president and CEO of HospitalityMaine, told Mainebiz earlier this month. The numbers aren't in yet, but anecdotally, Lewis said, most members of the state's nonprofit restaurant and hotel trade group "were quite pleased with the year." Maine Tourism Association members were also asked what they are most concerned about for the upcoming year. Respondents could choose more than one answer. Topping the list at 65% was the cost of doing business. Next was staffing shortages at 45%, then economic recession at 44%. Decline in demand for travel earned 23% of votes and weather concerns had 12% of the votes. The Maine Tourism Association is the state's largest advocate for tourism-related businesses. Incorporated in 1922, MTA members include lodging, restaurants, camps, campgrounds, retail, outdoor recreation, guides, tour opera- tors, amusements, transportation and cultural and historical attractions. MTA also operates seven state visitor informa- tion centers from Kittery to Calais, and annually produces the state's official travel planner, "Maine Invites You." P H O T O / L A U R I E S C H R E I B E R Crowds swarmed downtown Bar Harbor last summer. But staffing shortages plagued the hospitality industry, a situation expected to persist this year. S O U R C E : Maine Tourism Association FACTORS AFFECTING 2023 PLANNING DECISIONS Hospitality businesses are wary about economic uncertainty, as well as rising costs and ongoing labor shortages. 34% General economic uncertainty and the potential for cancellations 28% Uncertainty about out-of-state travel restrictions 24% Limited capacity for guests 15% Lack of operating funds because of last year 34% 28% 24% 15%

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