Tourism Will Stay Strong in 2000, Report Says
Southern California’s tourism industry, a key pillar of the local economy, is expected to see its eighth straight year of steady growth as a strong national economy and improving economies abroad keep sending visitors to the region, according to a new industry report.
The continued stream of tourists will push occupancy at Los Angeles County hotels to 76% in 2000 and allow hotel operators to charge, on average, an additional $5 per night over this year’s rates. According to the report to be released Friday by UCLA Extension, by the end of next year, occupancy will have risen by roughly 14 percentage points since 1993 and the average room rate will have shot up by $35.80 to hit $114.
Demand remains high in part because the region, despite the increase in room rates, is still cheaper to visit than other major cities such as New York and Chicago, said Michael Collins of the Los Angeles Convention & Visitors Bureau. “Our rates have a long way before they hit the saturation point.”
Tourism is vital to the region’s economy. In Los Angeles County alone, it is considered the third-leading revenue generator, sustaining more than 300,000 jobs and producing an estimated $6.1 billion in wages and salaries. Only business support and health services sectors are bigger.
The findings are part of a study of the region’s tourism industry conducted by PKF Consulting for UCLA Extension’s annual Southern California Visitor Outlook Conference scheduled for Friday in Long Beach.
The report also found that about a quarter of all visitors to L.A. County come from abroad, and noted that healthier economies in Europe and Asia coupled with a weak U.S. dollar should help bring more foreign visitors to the area.
International traffic at Los Angeles International Airport is projected to close out this year 6% higher than last year’s levels, the report said.
In Orange County, hotel occupancy next year is expected to remain mostly unchanged for the third straight year, hovering at roughly 69% after falling from a decade-high 72% in 1996. The report cites construction projects at Disneyland, the Anaheim Convention Center and on roadways throughout the area as a primary factor in the drop-off.
Southern California’s tourism industry will get an additional boost next year as Los Angeles plays host to the Democratic National Convention next summer. Nearly 40,000 visitors will be in town for the four-day event.
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Tourist Rates
Because of rising demand, local hotels have been able to steadily raise room rates by an average of $5 per night in the last few years. And next year is not expected to be any different. Average rate for a hotel room in L.A. County, yearly and latest forecast:
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2000 forecast: $114
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Source: PFK Consulting
