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San Diego hotel results weak last year

Hotel guru Morrison says 2014 will lag, too

(image from travel.pasadenanow.com)
(image from travel.pasadenanow.com)

According to Smith Travel Research figures, San Diego's hotel occupancy rate last year climbed only 1.5%, to 71.6%; that lagged the nation's top 25 markets with a combined rise of 2.1%.

San Diego also lagged San Francisco, which was up 3.3%; Orange County, up 2.6%; and Los Angeles, up 1.9%

San Francisco's average daily room rate is $187.79 versus San Diego's $135.84.

"The sequester continues to impact San Diego as government business was down in December," says Encinitas-based Jerry Morrison, a hotel expert. He believes San Diego will lag San Francisco, Los Angeles, and Orange County throughout this year.

The San Diego Tourism Authority laid off a lot of staff for lack of funding. The staff is now being rebuilt, but in the group market, "it will be two years before we will be back in the market wth an effective sales team."

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(image from travel.pasadenanow.com)
(image from travel.pasadenanow.com)

According to Smith Travel Research figures, San Diego's hotel occupancy rate last year climbed only 1.5%, to 71.6%; that lagged the nation's top 25 markets with a combined rise of 2.1%.

San Diego also lagged San Francisco, which was up 3.3%; Orange County, up 2.6%; and Los Angeles, up 1.9%

San Francisco's average daily room rate is $187.79 versus San Diego's $135.84.

"The sequester continues to impact San Diego as government business was down in December," says Encinitas-based Jerry Morrison, a hotel expert. He believes San Diego will lag San Francisco, Los Angeles, and Orange County throughout this year.

The San Diego Tourism Authority laid off a lot of staff for lack of funding. The staff is now being rebuilt, but in the group market, "it will be two years before we will be back in the market wth an effective sales team."

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2

Morrison's comment, if correct, means that the local hotel business was not as much a creature of tourism as it was of the military-industrial complex. In other words, the local economy is far more dependent upon federal spending than many have cared to admit. And that is not the sort of diversified economy that can be described as healthy or the sort of thing we would want to have.

Feb. 4, 2014

Visduh: Morrison does not mean to say that government tourist business is an all-important factor in San Diego. But it IS very important. After all, government spending, including military contracting, is 25% of the San Diego economy. It has been larger than that in the past, but you are right: it still represents a heavy portion of the local economy.

The bottom line is San Diegans should NOT send out Christmas cards with the words "Peace on Earth." Before I am besieged by angry readers, I must say that I am kidding. Best, Don Bauder

Feb. 4, 2014

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4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
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