Tourists Are the Toast of the Town : Occupancy Rise at L.A. Hotels Signals Boom

For the tourism industry in Los Angeles, 1996 was the year the recovery decided to stay--and checked into a local hotel, according to statistics released Tuesday by the Los Angeles Convention & Visitors Bureau.

Not only did about 1 million more tourists hit town last year, spending about $1 billion more than they did in 1995, but--for the first time since the bureau has been keeping records--more people stayed in hotels than with friends or relatives.

“For the economy of Los Angeles, this is a wonderful trend,” said Patti MacJennett, vice president of tourism marketing for the Los Angeles Convention & Visitors Bureau. That’s because tourists staying in hotels spend four times more than private-home counterparts, she said.

Nearly 11.7 million visitors used commercial lodging last year, up from 11.05 million in 1995, according to surveys conducted for the bureau by the consulting firms of CIC Research and PKF Consulting. Visitors staying in private homes reached 11.52 million, up from 11.06 million in 1995.

The percentage of people staying in commercial lodging began increasing in 1993--thanks, in part, to the growing number of international tourists, MacJennett said. The hotel business got an unexpected boost from the January 1994 earthquake, which reduced the available stock of private housing and demonstrated to tourists forced to pick commercial lodging that hotels can be affordable, she said.

In all, 23.2 million tourists took in Los Angeles County in 1996, up 4.9%, and they spent $10.5 billion, up 8.2%. (Those tourists who bypassed hotels and homes were found in campgrounds, RV parks, marinas, rented apartments, condos or time shares.)

The industry is projected to continue growing this year, though at a somewhat slower pace.

This year the bureau expects 23.6 million visitors, up nearly 2%. Spending is projected to rise nearly 5%, to $11 billion.

“I think people feel good about Los Angeles again,” MacJennett said. “It’s a huge turnaround.”

Tourism is a giant industry in Los Angeles, directly employing about 318,000 people in the county; its total economic impact is more than $24 billion. The industry has been struggling to return to the golden years of the late 1980s, before riots, recession and earthquakes left their mark.

The county’s tourism industry bottomed out in 1992 with 20.9 million visitors and $7.6 billion in spending. Tourism has been climbing back since then, but 1995 was little changed from the year before.

Los Angeles County’s hotel occupancy rate, a key tourism indicator, rose to 71.66% for 1996, up from 67.61% the year before. Hotel occupancy rose a whopping 15.5% downtown and was up nearly everywhere else in the county, declining only marginally in Hollywood, Pasadena and the Whittier area.

The average daily room rate increased 5.9% to $89.26.

Flying Through

Travelers will be able to take advantage of one-stop business shopping this summer at Los Angeles International Airport because of a concession agreement awarded Tuesday that will cluster business and currency exchange services in each terminal.

Under the agreement with Lenlyn Ltd. of Los Angeles, new business centers will be opened in each terminal that will consolidate foreign currency exchange, travelers insurance, notary public, travelers checks and business services. In addition, new business centers will be built on the lower level of terminals 2, 5 and 6 to cater to arriving international passengers.

Previously, the business center and currency exchange operations were run by three separate companies. The Los Angeles Department of Airports expects to receive $33 million over five years from Lenlyn. The company will also operate a business center at Ontario International Airport.

Nancy Rivera Brooks can be reached by e-mail at nancy.rivera.brooks@latimes.com or by fax at (213) 237-7837.