Tourism slump likely to continue
Tourism in Sonoma County is in a recession-inspired slump and that won't change much until the U.S. economy recovers, county economic development coordinator Ben Stone told supervisors Tuesday.
Businesses are cutting back on travel, causing declines in visitors and spending in Sonoma County's tourism sector, Stone said Tuesday as he delivered the annual tourism forecast generated by Economy.com.
"Business conferences are a substantial revenue source for Sonoma County tourism," according to the report by Economy.com, a West Chester, Pa., firm that tracks the local economy under a contract with the county.
"In order to reduce costs and avoid the negative perception of corporate excess during the recession, companies have canceled planned forays to the Wine Country," the firm reported.
Stone has estimated that visitor spending, which soared to a record $1.34 billion in 2007, could end up slightly over $1 billion for 2008. Tourism, which employs about 16,800 people in hotels, restaurants and recreation, is one of the county's major industries along with government services, health care, wine and agriculture.
Last week, the county reported that transient occupancy taxes levied on rooms at hotels, inns and campgrounds had declined slightly in 2008 to $20.3 million, an indication the local hospitality industry was affected by the recession.
On the bright side, Stone said Horizon Air's expansion of flights at the Sonoma County airport led to an 88 percent jump in air passenger traffic, which brought more visitors directly to the county.
He also said that increasing wine consumption among the Generation Xers (33 to 44 years old) and the "millennial" demographic (15 to 32 years old) would benefit the county because it increased the pool of potential visitors.
Although foreign visitors kept coming to Sonoma County in the first half of 2008, Stone said the Economy.com analysis found that the weakening global economy kept them away in the latter half.
Visitor surveys show that, of an estimated 7 million visitors to Sonoma County, about 6.6 percent are from foreign countries, with Europe, the United Kingdom and Canada leading the list.
The largest group of visitors comes from the San Francisco Bay Area, which is why the county's tourism bureau continues to spend heavily on advertising that promotes the county as a destination visitors can reach easily by car.
The annual survey found that about 65 percent of Sonoma County visitors come from San Francisco, the East Bay, Marin County or Silicon Valley.
Wendy Peterson, executive director of the Sonoma Valley Visitors Bureau, said the dozen tourism centers in the county will soon be handing out a historic trail map that will focus on pedestrian, biking and driving tours.
Cultural heritage tourism is a growing niche market among travelers seeking to visit historic buildings and sites, museums and art galleries, Peterson said. The map will provide directions and paths across an area that spans from Gualala to the Sonoma Valley, she said.