Surprising Season : One-Time Events Perk Up Southland Tourism Industry

By NANCY RIVERA BROOKS

Sept. 7, 1994 12 AM PT

TIMES STAFF WRITER

There are a few simple measurements of the vitality of the Southern California tourism industry that economist Jack Kyser likes to take:

How many tour buses pull up in front of the Mann’s Chinese Theatres, which stand directly across the street from Kyser’s office at the Economic Development Corp. of Los Angeles County? And how many tourists must be circumnavigated as they sit or lie on the Hollywood Walk of Fame for a photo opportunity with a favorite star?

This summer, the diesel fumes were thick and “I have had to watch my step especially carefully,” Kyser quipped.

Believe it or not, this has been a better-than-OK year for tourism in Southern California, which has been languishing during the recession. The earthquake took away and the earthquake gave back. Then the World Cup kicked in its share. And the weak dollar also chipped in.

“An awful lot of the world’s travelers found themselves having a great time in a product with the brand name Los Angeles,” said Michael Collins, senior vice president of the Los Angeles Convention & Visitors Bureau.

But all is not souvenirs and postcards home, particularly in Orange County. Underneath this apparent renewed health lies the knowledge that big events do not an industry make, that perhaps the tourism business is not doing all that well after you eliminate the one-time happenings.

Some of the region’s theme parks, for example, endured a lackluster early summer followed by a pickup in attendance tied to new attractions. But most of those taking in the local sights were from Southern California, with a noticeable drop in international and out-of-state tourists.

“The underlying kind of base level of tourism is not there,” said Bruce Baltin, who follows hotels for PKF Consulting in Los Angeles.

The tourism industry measures its well-being, in part, by how busy the area’s hotels are. In Los Angeles County, occupancy at major hotels was 65.5% for the first six months of 1994, up nearly 7% from the same period last year, according to PKF Consulting. July was even better, with an occupancy of 72% compared to 64% in July, 1993.

But in Orange County, hotel occupancy fell 2% during the first six months to 64.2%. (July figures were unavailable.) “In Orange County, it was not a good story,” Baltin said.

Los Angeles hotels reaped business from the Northridge earthquake, which displaced homeowners and brought in armies of insurance adjusters and government emergency workers, Baltin said. (Even so, the Jan. 17 earthquake eventually will end up costing the area’s tourism industry $308 million in lost business, another PKF study found.)

As that windfall began to dissipate, World Cup business began arriving in June and July.

“World Cup turned out to be worse than some people expected and better than others expected,” Baltin said. Early reports from L.A. hotels indicate that August also was a good month because of travelers who had postponed trips to avoid World Cup crowds, he said.

The Los Angeles Convention & Visitors Bureau reported a 4.4% increase in overnight visitors for the first six months of the year while the Anaheim/Orange County Visitors & Convention Bureau reported a slight decrease.

“It was a steady summer . . . but not a blockbuster,” said Elaine Cali, spokeswoman for the Anaheim-Orange County bureau. “It’s because of the overall economy. People are still holding back.”

Japanese tourists avoided Southern California through June because of economic problems at home and because of fears of violence, said Shiro Monden, general manager of Los Angeles-based Japan Travel Bureau International, a large operator of tours from Japan. But business has jumped 25% since July as booming development in Las Vegas has lured travelers interested in a Nevada-California tour, he said.

“Thanks to Las Vegas for our business,” he said.

The region’s amusement parks also say that international tourists stayed home this summer.

At Disneyland, June was “somewhat disappointing” partly because some out-of-town visitors were scared away by the Northridge earthquake, said spokesman John McClintock.

But attendance rose in July and August after the Anaheim theme park introduced a parade tied to the hit movie “The Lion King,” he said.

“We still have some concerns about international tourism. It appears that is not as strong as it was before everything that has happened in recent years,” McClintock said. “But local attendance was extraordinary and that kind of made up the difference.”

Disneyland just cut admission prices to keep pulling in the locals this fall. “It’s worked very well for us in good times and bad,” McClintock said.

Universal Studios Hollywood has a tough act to follow: Despite the area’s continuing woes, 1993 was one of the best in the attraction’s history thanks to the “Back to the Future” ride introduced that year.

Although international travelers were not abundant, Universal should nearly equal last year’s level, spokeswoman Joan Bullard said.

“Our international business was soft, but we have great hopes that this will turn around in the next year,” she said. “I think everyone is primed and ready to come to Southern California.

“It definitely will come back,” said Knott’s Berry Farm spokesman Bob Ochsner, where attendance was up at least 10%, thanks to the park’s new “Mystery Lodge” attraction. “It always does.”

But while the tourist industry has hopes for next year, convention business will be sharply down at the new $500-million Los Angeles Convention Center next year, said Collins of the Los Angeles Convention & Visitors Bureau.

In 1995, the convention center will house 10 national association meetings, down from 17 this year. The 1994 total dropped after the earthquake when two groups canceled and another combined two meetings into one.

National meetings are booked well in advance and because of the 1992 riots, “for all practical purposes we were out of business for half a year,” resulting in low bookings for 1995, Collins said.

Rooms at the Inn

HOTEL OCCUPANCY RATE

Los Angeles County

First half, 1994: 65.5%

First half, 1993: 61.3%

Orange County

First half, 1994: 64.2%

First half, 1993: 65.6%

AVERAGE DAILY ROOM RATE

Los Angeles County

First half, 1994: $91.14

First half, 1993: $80.95