Annual Sonoma County Tourism Report 2010

EDB
Sonoma County
Economic Development Board
Annual Tourism Report
2 0 1 0
E c o n o m i c D e v e l o p m e n t B o a r d 4 0 1 C o l l e g e A v e n u e S u i t e D S a n t a R o s a C A 9 5 4 0 1 ( 7 0 7 ) 5 6 5 - 7 1 7 0

Table of Contents
1 I ntroduc tion
Moody ’s Economy.com
2 Moody ’s Economy.com Tourism Repor t
Tourism Indicators
6 Tourism I ndustr y I ndicators Summar y
7 Destination Spending
8 Destination Spending Breakdown
9 I ndustr y Employment
10 Lodging & Hospitality Assessment
11 Tourism Generated Taxes
Sonoma County Tourism Industry Survey
12 Tourism I ndustr y Sur vey Summar y
13 Sur vey Response Demographics
14 Sur vey Response Demographics Continued
15 Visitor Origins and Traveler Type
16 Expansion, I ndustr y Confidence/Outlook & Green Prac tices
17 Local Government Assistance, Promotional Assistance & Marketing
18 Attrac tions, Potential & Market Oppor tunities
19 Market Oppor tunities, Potential New Programs & Suggestions
20 Methodology
21 Ack nowledgements

Introduction
2010
June 2010
The Sonoma County Economic Development Board (EDB), in partnership with the Sonoma County Tourism
Bureau (SCTB), is pleased to bring you the 2010 Annual Tourism Report. The 2010 Annual Tourism report contains
three sections integrating findings on the local tourism industry. The first section contains research conducted by
our research partner, Moody’s Economy.com, on current industry vitality and long-term outlook. The next section
of the report highlights key economic indicators produced by the California Travel & Tourism Commission and
Smith Travel Research. The last section provides updated results of the EDB Annual Tourism Industry survey.
Moody’s Economy.com is a leader in economic research and provides key quantitative and qualitative analysis on
Sonoma County’s tourism industry. Key findings from Moody’s Economy.com 2010 Annual Tourism Update
include:
While air passenger traffc at the Charles M. Schultz-Sonoma County Airport fell by 9% in 2009, increases
in passenger traffc to San Francisco International Airport, and more visitors driving up from the Bay Area,
have helped offset some of the weakness in passenger volume at Sonoma County Airport.
The continued strong popularity of wine and wine-related culture, and its expanding link between local
food offerings and health and wellness activities, underpin a positive fundamental outlook for the
county‘s tourism industry.
The California Travel & Tourism Commission provides a `Travel Impacts by County’ report each year. This report
provides the latest available economic impact figures for Sonoma County and, along with the most recent lodging
statistics, these make up the primary sources behind the tourism industry indicators. Key findings include:
Inflation-adjusted destination spending in Sonoma County showed a 0.9% decrease in 2008 after reaching
a record high in 2007. Industry employment increased for the third consecutive year.
Sluggish lodging performance statistics and transient occupancy tax receipts reflect the industry
downturn, as year-over revenues decreased in 2009.
Each year the EDB conducts an annual tourism industry survey of Sonoma County business owners and executives
involved in tourism focusing on complete industry strength, confidence, and opportunities. Key findings
from this survey include:
There are many niche market opportunities for Sonoma County’s tourism industry. Strong survey support
was shown for programs in health and wellness tourism as well as eco-tourism, cycling, and LGBT (lesbian,
gay, bisexual, transgendered).
The majority of respondents chose not to expand operations over the past year, largely due to the economic
downturn. However, reporting tourism businesses have a generally positive outlook for this year.
Thank you for your continued interest in the Economic Development Board’s research. As always, if you have any
questions, please feel free to contact us at 707-565-7170.
Sincerely,
Ben Stone
Executive Director
All information contained within this report was obtained from sources believed to be accurate, but the Sonoma County Tourism Bureau (SCTB) and the
Economic Development Board (EDB) do not guarantee that it is accurate or complete. The most recent published data was included in this report, and
where appropriate, that data has been adjusted using the U.S. Bureau of Labor Statistics Consumer Price Index. This report is intended for informational
purposes only and does not represent an endorsement of any proposed project by the SCTB or EDB or any of their employees, affliates, or members.
www.sonomaedb.org 1

Moody’s Economy.com
Recent Trends & Macro Drivers
Recent Trends
Sonoma County’s tourism industry is struggling, but the worst of
this business cycle has passed. Leisure/hospitality employment is
down 2.6% from one year ago, a loss of just over 500 jobs. However,
the pace of decline is steadily easing, and payrolls have rebounded
slightly from a low point reached during the weak summer 2009
tourism season. Through the recession, the tourism industry in
Sonoma County declined less severely than the economy as a
whole.
Indicators of tourism demand have been universally weak. Air
traffic through Charles M. Schultz-Sonoma County Airport fell by
9% from 2008 to 2009, exceeding the national decline of 6%. With
fewer passengers, occupancy dropped from 73% of saleable seats
to 71%. The latest data, which extend through March, show that
weakness is moderating only slightly, with passenger volumes still
down 5% from one year earlier. Fortunately, passenger traffic is
rising at San Francisco International Airport, and more visitors
driving up from the Bay Area has helped offset some of the weakness
in passenger volume at Sonoma County Airport.
Hotel occupancy is low, but it has improved slightly over the past
year. According to data from Smith Travel Research, Sonoma
County’s hotel occupancy rate was 46.4% in February, up 1.8
percentage points from a year before. However, hotels have significantly
cut prices to draw this volume. The average daily room rate
has fallen from $97.91 to $90.90 over the same period. Even though
hotels are filling more of their rooms, revenue from room sales is
down 3.4% because of lower prices.
The tough tourism market is causing trouble for hotel owners.
Three hotels in Sonoma County have defaulted on loans in the past
year and are now operating under restructuring-oriented management.
Hotel construction is practically nonexistent, and the market
has added an insignificant number of new rooms over the past
year.
Although hotels are struggling to make money, the number of
guest nights stayed is increasing as measured by Smith Travel
Research, an encouraging sign for other tourism businesses. There
is evidence that travelers are taking money saved on hotels and
spending it on other vacation interests. Nationwide, tourist spending
on food and beverages, recreation and entertainment, and
shopping increased ever so slightly in the final quarter of 2009.
Macro Drivers
The U.S. economic recovery is slowly gaining traction. Real GDP has
been growing since the middle of last year—most recently posting
5.6% annualized growth in the fourth quarter of 2009. There are a
significant number of challenges hindering the transition from
recovery to a self-sustaining economic expansion, but policymak-
2 www.sonomaedb.org
Sonoma Tourism Occupies Middle Ground
Leisure and hospitality payrolls, index, Jan-09=100
101
Sonoma County California U.S.
100
99
98
97
96
95
94
Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10
Source: BLS
While leisure and hospitality payrolls losses are no longer accelerating, their
performance is still below where it was at the beginning of 2009. Sonoma
County is performing average at best, outperforming the state, but lagging
the national number. On the whole, the West region has been the worst
performing in the nation through the 2008-’09 recession, dragged down by
the widespread and severe housing crisis. This hurts prospects for a fast
rebound in leisure and hospitality payrolls as many regional metro areas are
still dealing with rising foreclosures and falling house prices.
ers appear willing and able to provide enough
monetary and fiscal support to overcome them. The
U.S. economy should grow 2.9% through the course
of 2010, and then accelerate to growth near 4% and
5% respectively in 2011 and 2012.
The job market is turning the corner to growth from
decline. The hiring rate has stopped declining and
the preconditions for increased hiring are coming
into place. Demand has stabilized, corporate profits
and cash flow are up strongly, and labor costs are
falling rapidly. Census hiring will create several
thousand temporary jobs lasting through the
summer, and although the job market will weaken
again when census employment fades, businesses
should have begun sustainable hiring by then.
Unemployment figures will lag job creation because
many residents who are sitting on the sidelines will
rejoin the search for work as more jobs become
available. This will extend weakness in the consumer
sector, with the unemployment rate unlikely to peak
until the third or fourth quarter and personal income
set to grow only 2% this year. However, labor market
slack will be a boon for businesses as they use
intense labor market competition to keep compensation
costs down.

Moody’s Economy.com
Industry Drivers & Pricing
Macro Drivers Cont’d
The Federal Reserve has shown a willingness to hold lending rates
low to sustain the nascent expansion, and interest rate tightening is
unlikely before 2011. Despite easy access to money, economic
challenges have effectively kept inflation fears in check.
Industry Drivers
Consumer confidence has improved slightly but is far from encouraging.
Sentiment has brightened since the darkest days of the recession,
but according to the Conference Board and University of Michigan
surveys, it still is not much higher today than during the low points of
previous, less severe, recessions. Wealthier households—the primary
Sonoma County tourist demographic—are unsettled about their
diminished nest eggs. They are in much better shape financially than
they were a year ago when stock and house prices were at their
cyclical lows, but household net worth is still almost 20% below its
pre-recession peak.
Only 31% of U.S. residents plan to take a domestic vacation in the
next six months according to the Conference Board. This is down
from more than 36% before the onset of recession. Over the past year,
vacation expectations have improved slightly, but the latest figure
shows that the economy still has to improve further before consumers
revisit their boom-period vacation plans. Business spending is just
beginning to emerge from recession-period freezes. This should
increase business travel to Sonoma County steadily through the
coming year, but it is rebounding from an exceptionally low level.
The outlook for depreciation of the U.S. dollar, which would encourage
U.S. residents to vacation domestically and draw more visitors
from abroad, is doubtful in the near term. The value of the U.S. dollar
has remained largely unchanged since the financial crisis and Great
Recession hit in 2007, intermittently weathering offsetting fluctuations
tied to the level of angst in the global financial system. The
outlook for the U.S. dollar is relatively stable, and concerns that it is at
risk of rapid decline are overblown. The dollar accounts for nearly
two-thirds of global reserves, and that is unlikely to change as the U.S.
is far and away the world’s largest and most stable economy and the
predominant player in global trade.
Many retailers and restaurants draw overlapping business from
tourists and local residents, and Sonoma County’s endogenous
economic conditions play an important role in the tourism industry’s
performance. Sonoma County is gradually crawling out of recession
with rebounding tech businesses leading the way. However, poor
state and local government finances are hindering public sector
employment. Sonoma County’s economic performance in the near
term will keep local demand for retail and restaurants stable.
Higher oil prices will increase travel costs for vacationers who fly or
Tourist Destinations Struggled in 2009
Hotel occupancy rate, %
80
75
2008 2009
70
65
60
55
50
45
40
U.S. California Sonoma
County
Source: Smith Travel Research
Napa
Valley
San
Francisco
Oakland
Leisure and hospitality payrolls are also unlikely to rebound until there is an
improvement in occupancy rates for hotels. In 2009 there was an almost
universal decline in occupancy rates across the country. This fall in occupants
decreased hotels’ ability to control pricing, forcing them to operate on lower
margins. They were helped slightly by lower operating costs, but even that
was not enough to completely compensate. Sonoma County dealt with rising
hotel foreclosures and bankruptcies in 2009. Local hotels will be looking to
regain some price control in 2010.
drive considerable distances, reducing the amount
they will spend during their stay in Sonoma County.
Energy prices have risen significantly as the global
economic recovery has matured. Oil averaged just
over $81 per barrel during March, a 69% increase
from one year earlier.
Terminal improvements underway at Charles M.
Schultz-Sonoma County Airport will update security
systems and expand passenger areas. This $1.7
million federal stimulus-funded project does not
constitute a major expansion of capacity and alone
will not be enough to encourage new carriers to
serve the airport. Substantial improvements in both
the local and national economy and increased
marketing campaigns will also be needed to attract
additional service.
Pricing
Consumers will absorb only the slightest price
increases through the coming year as the still
weakened job market limits their willingness and
ability to spend. After declining in 2009, wages will
grow 2% through the course of this year. Although
an improvement, this is low by historical standards
and rising commodity prices will absorb much of the
income gains.
www.sonomaedb.org 3

Moody’s Economy.com
Operating expenses, Profitability, & Long-Term Outlook
Pricing Cont’d
Local hotels had to sharply cut prices in 2009 to attract customers.
The price cuts resulted in a decline for overall revenues according to
Smith Travel Research. Further price declines are likely—room rates
currently exceed those in Napa Valley—but the magnitude of price
declines should be less severe than last year as hotels attempt to
protect revenue levels. Fortunately, hotel construction is on hold,
preserving what pricing power hoteliers still have.
Nationwide, Moody’s Economy.com forecasts prices for food outside
of the home to increase only 1.7% this year. This is down from a 3.5%
increase in 2009 and will result in low revenue growth for restaurants.
Operating Expenses
Input costs for tourism businesses will increase only modestly this
year. Labor costs, a major expenditure for the tourism industry, should
stay low through this year because of significant labor market slack.
Sonoma County’s unemployment rate is 10.7%, one percentage point
higher than the U.S. average, and it is unlikely to peak before summer.
The poor commercial real estate market will also help keep rents
down. The commercial market is flooded with space because of
recession-period business closures and contractions. Tenants have
the upper hand in rent negotiations and tourism businesses will look
to lock in extended leases at low present rates.
Food costs will increase slightly this year, raising expenditures for
restaurants. However, agricultural markets have stabilized considerably
from their boom-period heights at the beginning of the recession
and food prices will remain far below levels in recent years.
Profitability
Operating cost increases will be modest, but still enough to hold
down profits. Hotel operators face a profit outlook that is nearly as
bleak as last year’s. Competition for a still-subdued volume of travelers
will lead to price cuts that eat away at profit. Low input costs will
enable hotels to sustain low prices, but will do little to help profits.
The upside of low prices is that they may draw new visitors to
Sonoma County who will continue to visit in better economic times.
Higher food prices will squeeze restaurants margins slightly. Restaurants
will be hard pressed to pass the full extent of increased food
costs on to their customers during a period of low demand. However,
food accounts for only one third of restaurant expenses, and limited
growth in labor and real estate costs will help preserve balance
sheets.
Winery profitability could take a tumble if new legislation emerges to
restrict operating hours. Wineries face fixed costs that are easier to
cover with longer tasting hours. If tasting hours are restricted, some
4 www.sonomaedb.org
Commercial Hotel Markets Seeing Improvements
Change yr ago, NSA
800
600
400
200
0
-200
-400 U.S. hotel/motel loan amount
committed, mil
-600
CA hotel permits, ths
-800
2004Q1 2005Q1 2006Q1 2007Q1 2008Q1 2009Q1
Sources: Construction Industry Research Board, American Council of Life Insurers
wineries may close their tasting rooms to preserve
profits, limiting Sonoma County’s overall tourism
draw. Moreover, tasting hours that extend into the
evening could encourage overnight stays from
regional travelers, benefitting local hotels and
restaurants.
Long-Term Outlook
The long-term outlook for Sonoma County’s tourism
industry remains positive. The region is growing in
recognition as a premier tourist destination, and its
proximity to Bay Area attractions and airports will
continue to support tourist traffic. Direct air access is
a plus, although further expansion would improve
Sonoma County's attractiveness. Moreover, the
continued strong popularity of wine and the winerelated
culture and its expanding link between local
food offerings and health and wellness activities
underpin the positive fundamental outlook for the
industry.
300
200
100
0
-100
-200
-300
-400
The commercial real estate market fall lagged the residential one, but it has
been rather severe. The lack of easy credit availability that marked the
beginning of the recession and low demand for hotel rooms began resulting
in a severe slowing of hotel construction activity. While the decline has
slowed, hotel permit issuance for California has yet to turn positive on a
year-ago basis, and creditors are still lending only with caution. Weak
demand is still pervasive, although consumers are starting to pick up steam,
making the prospect of more hotel projects more likely for 2011.

Moody’s Economy.com
Long-term Outlook-Continued, Upside & Downside Risks
Long-Term Outlook cont’d
Demographic trends are favorable, with some of the fastest growing
states within driving distance of the California wine region, and
increased access to international tourists from Asia and South
America. Wine consumption is growing among the "millennial"
generation now aged 15 to 32, and the pool of potential visitors will
grow as incomes for this cohort steadily increase.
Upside Risks
A stronger than expected rebound for consumer or business spending
would boost tourism in Sonoma County. Labor markets are one
of the last pieces of the economy to recover following a recession,
and the current weak job market is discouraging consumers. If labor
conditions improve ahead of existing projections, consumers will
more quickly return to their free-spending ways, including more
vacations to the wine country. Moreover, businesses are eking out
profits through cost savings, placing strong scrutiny on travel
expenses. If sales growth begins to accelerate strongly, cost oversight
will ease bringing corporate travel and junkets back to
Sonoma County more quickly than anticipated.
The greater San Francisco area is on track to build back to
pre-recession levels of economic activity over the next several years.
However, if unexpectedly strong tech performance or significant
new investments accelerate the rebound, greater local wealth will
lead to a surge in driving distance tourist activity in Sonoma County.
China could grow as a source of foreign tourism, as it has the potential
to exceed U.S. growth. If China can sustain its rapid pace of
expansion, new wealth will boost tourist volume. Moreover, if China
agrees to U.S. requests to revalue the yuan, U.S. purchases would
become more affordable, further encouraging travel to Sonoma
County.
Downside Risks
Although the U.S. economy is drawing closer to self-sustainable
recovery, the next few months will be a high-risk period, and policy
or corporate missteps could put the economy back into recession. A
double-dip recession would unwind recent consumer and business
travel gains, setting off another wave of severe layoffs and business
closures in Sonoma County.
Assuming the U.S. recovery does proceed smoothly, an unexpected
rise in oil prices could still pull back tourism demand. Higher oil
prices would increase travel costs to Sonoma County further. This
would result in shorter stays and lower sales for local retailers.
Rising Commodity Prices Provide Downside Risk
15
10
5
0
-5
-10
-15
San Francisco air passenger
traffic, % change yr ago (L)
would strongly boost the value of the dollar, chasing
away European tourists. Greek debt will face intense
scrutiny for the next several years.
Finally, Sonoma County’s popularity is always at risk
if fashions change. Wine’s popularity is likely to
persist, but a permanent shift towards value-priced
wines over high-priced quality wines could diminish
interest in visiting Sonoma’s wine country.
Produced by:
Addison Franz and Morgan McGowan
April 2010, Moody’s Economy.com, Inc.
Oil prices
$ per bbl (R)
Jan-08 Jul-08 Jan-09 Jul-09 Jan-10
Sources: San Francisco International Airport, Federal Reserve Bank of St. Louis
About Moody’s Economy.com
Moody's Economy.com, a division of Moody's
Analytics, is a leading independent provider of
economic, financial, country, and industry research
designed to meet the diverse planning and information
needs of businesses, governments, and professional
investors worldwide.
140
120
100
While most indications are that the worst is behind tourism-related
industries, hotels are still sensitive to increases in commodity price increases.
The negative effect of increases in commodity prices both on transportation
prices and on consumers’ discretionary spending will be a downside risk. Air
passenger traffc is on the rise, but large increases in ticket prices could
discourage tourists from the Sonoma County area. The West region is still
performing more poorly than much of the nation, increasing the importance
of non-local tourists. High commodity prices could disrupt the expected
recovery.
80
60
40
20
Although relatively unlikely, sovereign defaults in the Euro Zone
www.sonomaedb.org 5

Tourism Industry Indicators
Sonoma County
Tourism Industry Indicators
The Tourism Industry Indicators section is based on data prepared for the California Travel
and Tourism Commission by Dean Runyan and Associates, industry data from Smith Travel
Research, and Sonoma County’s Transient Occupancy Tax receipts. Where applicable, the
data and graphs in this section have been adjusted for inflation using the U.S. Bureau of Labor
and Statistics Consumer Price Index.
In this section, Santa Barbara and Napa are used as comparison counties because of their
similarities in offerings, size, and geographical location. The featured data is the latest available
from the California Travel & Tourism Commission.
Key findings include:
In 2008, Sonoma County destination spending and industry earnings saw a
year-over decrease from 2007 (after adjusting for inflation), while industry
employment continues to increase for the third consecutive year.
In 2009, Sonoma County’s year-over average daily rate decreased 10.9%
nominally and 10.6% when adjusted for inflation.
Sonoma County’s Transient Occupancy Tax receipts totaled $18.02 million in
2009 after adjusting for inflation.
6
www.sonomaedb.org

Destination Spending
Total, Per Capita & Growth
Destination spending is the total amount spent by
visitors in Sonoma County. This indicator includes all visitor spending
for accommodations, wine activities, retail, and other tourismrelated
purchases. The most recent inflation-adjusted figures show
that Sonoma County’s destination spending was down -0.9% from
$1.36 billion in 2007 to $1.35 billion in 2008.
$2000
Destination Spending,
2002 - 2008 (Millions of 2010 $)
The -0.9% decrease in 2008 was the first year-over-year decrease in
destination spending in Sonoma County since 2002 (-1.2%). The
decline in destination spending was a common trend in numerous
counties in California. Sonoma County’s inflation-adjusted destination
spending in 2008 surpassed the statewide average of -1.3%,
but was lower than Napa County (1.63%) and Santa Barbara County
(-0.4%).
$1500
$1000
$1.48b
$1.35b
$1.04b
Total destination spending in Santa Barbara, Napa and Sonoma
totaled $3.87 billion in 2008, remaining flat from the inflationadjusted
figure in 2007 ($3.87 billion). Sonoma County generated
34.9%; and Santa Barbara and Napa generate 38.2% and 26.9%,
respectively. California’s inflation-adjusted destination spending in
2008 was $98.1 billion.
In 2008, for each of Sonoma County’s 490,231 residents, $2,757.90
in destination spending was generated. Santa Barbara, with a
population of 432,981, generated $3,416.80 per capita, and Napa
generated the highest per-capita rate of the three with $7,487.80
for each of its 138,451 residents. Napa County has consistently high
per-capita figures due to its relatively small population.
Sonoma County destination spending per capita fell short of Napa
and Santa Barbara, but it outpaced the statewide average of
$2,573.60 per capita.
$500
10%
8%
2002
2003
Napa
2004
2005
Sonoma
2006
2007
2008
Santa Barbara
Source, all data: California Travel Impacts by County, 2009 Preliminary
State Estimates. Prepared for the California Travel & Tourism Commission
by Dean Runyan and Associates, April 2010. State of California,
Department of Finance, California County Population Estimates and
Components of Change by Year, July 1, 2000-2009. Sacramento,
California, December 2009. Adjusted for inflation using the US Bureau of
Labor Statistics Consumer Price Index.
Destination Spending
Annual Real Growth Rates,
2003 - 2008
Destination Spending Per Capita,
2008 (2010 $)
$8000
$7000
$7,488
$6000
$5000
$4000
$3000
$3,417
$2,758
$2000
$2,574
6%
4%
2%
0%
-2%
-4%
-6%
-1.3%
California
2003
Napa
2004
1.63% 6.66%
6.66%
2.33%
-0.9%
-0.4%
Sonoma Santa Barbara
2005
$1000
$0
California
Napa
Sonoma
Santa Barbara
2006
2007 2008
www.sonomaedb.org 7

Destination Spending Breakdown
AS in previous years, the overall distribution of commodity-based
visitor spending in Sonoma County is comparable to the featured
competitive counties and the statewide average. However, there are
several areas where Sonoma County appears to be somewhat
unique.
Visitors to Sonoma County devote a smaller share of their spending
towards accommodations: 17.9% of all spending, compared to
24.2% in Santa Barbara and 25.7% in Napa. Compared to California,
Sonoma County visitors spend an approximately equal share on
accommodations, food and beverage services, and food stores.
Visitors to both Napa and Sonoma counties spend proportionally
more than the state averages on arts/entertainment/recreation and
retail sales.
In comparison with the state and other competitive counties, a
smaller share of visitor spending in Sonoma County comes from
visitors who are staying in a hotel or motel (45.8% compared to
62.8%, 71.1% and 53.9% for the Santa Barbara, Napa and the state
respectively). Instead, a significant share of Sonoma County visitor
spending is received from day travelers (30.8%), compared to 22.1%
for Santa Barbara, 27.1% for Napa, and 24.9% for the state.
Although it represents a smaller share of spending, 8.5% of Sonoma
County visitor spending comes from visitors staying in vacation
homes, compared to 2.5%, 2.2% and 4.6% for Santa Barbara, Napa
and the state, respectively.
$350
$300
Visitor Spending by Commodity, 2008
(Millions of 2010 $)
$329
Distribution of Visitor Spending
by Commodity, 2008
30%
25%
20%
15%
10%
5%
0%
Accommodations
Food & Beverage Services
California
Food Stores
Ground Trans. & Fuel
Napa
Arts, Entertainment
& Recreation
Retail Sales
Sonoma
Air Trans.
Santa Barbara
Source, all data: California Travel Impacts by County, 2009
Preliminary State Estimates. Prepared for the California Travel &
Tourism Commission by Dean Runyan and Associates, April 2010.
Adjusted for inflation using the US Bureau of Labor Statistics
Consumer Price Index.
Distribution of Visitor Spending
by Accommodation, 2008
70%
60%
$250
$200
$150
$241
$222
$251 $258
50%
40%
30%
20%
$100
10%
$50
$0
Accommodations
Food & Beverage
Services
8 www.sonomaedb.org
$47
Food Stores
Ground Trans.
& Motor Fuel
Arts, Entertainment
& Recreation
Retail Sales
$0
Air Transportation
0%
Hotel, Motel
Private Campground
Public Campground
Private Home
Vacation Home
Day Travel
California Napa Sonoma Santa Barbara

Industry Employment
Industry employment, Earnings, No. of Jobs, & Growth
Travel spending in Sonoma County has a significant impact
on the local economy, contributing an inflation-adjusted $432
million in annual wages in 2008.
With 16,970 jobs generated by tourist destination spending,
Sonoma County ranks #1 against comparable counties - Napa:
11,750 jobs and Santa Barbara: 16,400 jobs. Sonoma County’s 2008
job figures show a 1.0% increase over 2007, down from a year-over
growth rate of 5.7% from 2006 to 2007.
Partly as a result of Sonoma County’s decline in destination spending
in 2008, employment levels in the tourism industry grew less in
2008 than in 2007. However, due to Sonoma County’s significant
increases in destination spending from 2006-2007, the county now
employs more tourism industry employees than Napa and even
Santa Barbara, a county in which total destination spending consistently
outpaces that of Sonoma County. Due to discrepancies in
growth between inflation-adjusted industry earnings (-0.8%) and
industry employment (1.0%), earnings per employee decreased
1.8% in 2008. Santa Barbara (-2.3%) and Napa counties (-1.5%) also
saw a decrease in earnings per employee in 2008, while the statewide
average saw an increase of 3.4%. California’s increase in
earnings per employee is largely attributable to a disproportionately
significant decrease in tourism industry jobs (-5.0%) relative to
industry earnings (-1.8%).
Distribution of employment within Sonoma County’s tourism
industry is similar to previous years, with 51.4% in accommodations
or food service, 39.2% in arts, entertainment and recreation, and
8.5% in retail. In the coming years, air transportation is expected to
be a new source of employment, due to the opening and expansion
of air service to Sonoma County.
Accommodations & Food Services (51.42%)
Arts, Entertainment & Recreation (39.21%)
Retail (8.49%)
Sonoma County Tourism
Employment by Industry, 2008
Auto Rental &
Ground Trans.
Retail
Arts, Ent., & Rec
Other Travel
Accommodations &
Food Services
Auto Rental & Ground Trans.
(0.59%)
Other Travel (0.29%)
# Of Jobs
17,000
14,000
11,000
8,000
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
Employment Generated by
Destination Spending,
2003 - 2008 (No. Of Jobs)
Napa
Sonoma
Santa Barbara
Tourism Industry Earnings per
Employee, 2003 - 2008 (2010 $)
$0
California Napa Sonoma Santa Barbara
Source, all data: California Travel Impacts by County, 2009
Preliminary State Estimates. Prepared for the California Travel &
Tourism Commission by Dean Runyan and Associates, April 2010.
Adjusted for inflation using the US Bureau of Labor Statistics
Consumer Price Index.
Tourism Industry Earnings per
Employee Real Growth Rates,
2004 - 2008
3.5%
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
-0.5%
-1.0%
-1.5%
-2.0%
-2.5%
2004
California
2005
Napa
2006
2007
Sonoma
3.4%
-1.5%
-1.8%
-2.3%
2008
Santa Barbara
www.sonomaedb.org 9
2003
2004
2005
2006
2007
2008
2003
2004
2005
2006
2007
2008

Lodging & Hospitality Assessment
Occupancy Rate, ADR, RevPar & Growth
Sonoma County’s occupancy rates stayed relatively stable
amid expansion in the county’s room offerings through 2007.
During 2008-2009, however, average occupancy dropped as the
recession decreased discretionary consumer spending.
Average daily rate (ADR) continued to decrease from the record set
in 2007 of $130.60 when adjusted for inflation, seeing a real
decrease of 10.6% from 2008. When compared after adjustment for
inflation, revenue per available room (RevPar) for Sonoma County
also fell from an average of $76.80 in 2008 to $63.00 in 2009.
Revenue per available room saw a greater decrease than ADR,
-17.9% compared to -10.6% respectively. This indicates that lower
average daily rates have not been offset by increases in occupancy
needed to maintain previous standards of revenue per room.
As page 8 illustrates, visitors staying in hotels and motels are the
single largest source of destination spending in Sonoma County,
with an estimated $613.5 million in 2008. Day travelers, as well as
those staying in B&Bs and private or vacation homes contribute the
majority of the remaining visitor spending.
Annual Lodging Occupancy Rates,
Sonoma County, 2004-2009
70%
66%
62%
58%
54%
50%
2004 2005 2006 2007 2008 2009
56.1%
Annual Average Daily Rate (ADR),
Sonoma County (2010 $)
$130
$124
Revenue Per Available Room
(RevPar) and Annual Average Daily Rate
Real Growth Rate,
Sonoma County, 2004-2009
15%
10%
5%
$118
$112
$106
$100
2004 2005 2006 2007 2008 2009
$112.30
0%
-5%
-10%
-10.6%
Revenue Per Available Room
(RevPar), Sonoma County (2010 $)
$90
-15%
-20%
2004
2005
2006
ADR
2007
RevPar
2008
2009
-17.9%
$72
$54
$63
$36
Source, all data: Smith Travel Research, 2009.
Adjusted for inflation using the US Bureau of Labor Statistics
Consumer Price Index
10 www.sonomaedb.org
$18
$0
2004 2005 2006 2007 2008 2009

Tourism Generated Taxes
TOT Revenue Updates & Spending
Transient Occupancy Tax (TOT) is a local tax on room
rental revenue in lodging properties located in Sonoma County.
TOT revenues in Sonoma County decreased 12.68% to $18.02 million
in 2009 when adjusted for inflation. Beginning in Quarter 2 of 2008,
cities and the unincorporated areas began experiencing stagnant and
decreased year-over growth as the recession began to negatively
affect visitor traffic and spending nationwide.
Revenues from TOT are divided between the County of Sonoma
(which receives revenue from lodging properties in unincorporated
regions) and the individual cities in the county. Collectively, the
incorporated cities generated 60% of all revenue in 2009, while the
county generated 40%. This distribution has shifted slowly over time;
in 1997, cities received 54% of all TOT revenue.
Spending by day travelers and overnight visitors to Sonoma County
ments, including sales tax and transient occupancy tax. Total local
taxes collected, including TOT, from visitors to Sonoma County in
2008 were estimated at $29.1 million, after adjusting for inflation.
This represents a 1.32% decrease from 2007 ($29.5 million). In 2008
the state collected $52.8 million, after adjusting for inflation from
Sonoma County visitors, a 1.44% decrease from 2007 ($53.5
million).
Percentage of Annual TOT
Revenue By City, 2009
Sonoma County (unincorporated
and cities) Annual TOT, 2001-2009
(Millions of 2010 $)
$22
$20
$18
$16
$14
$12
$10
2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: Transient Occupancy Tax Report: Q4 2009, Sonoma County Economic Development Board.
Adjusted for inflation using the US Bureau of Labor Statistics Consumer Price Index.
Unincorporated Sonoma County
TOT Revenue Spending Areas,
Fiscal Year, 2009-2010
Tourism
(18%)
Transfer to
General Fund
(22%)
Regional
Parks Maint.
(28%)
Sebastopol
Sonoma
Windsor
Agriculture
(2%)
Collection &
Admin. (3%)
Arts/Culture/
Historical Orgs.
(5%)
Unincorporated
Affordable
Housing (7%)
Economic
Development (15%)
Santa Rosa
Rohnert Park
Unincorporated
(39.55%)
Petaluma
(6.70%)
Sebastopol
(1.26%)
Petaluma
Cloverdale
(0.83%)
Rohnert Park
(8.99%)
Sonoma
(11.16%)
Healdsburg
Healdsburg
(8.63%)
Santa Rosa
(17.06%)
Windsor
(5.82%)
Source: Transient Occupancy Tax Report: Q4 2009, Sonoma County Economic Development Board
Cloverdale
Source: Sonoma County Budget 2009-2010 fiscal year.
80
70
60
50
40
30
20
10
0
Tax Receipts Generated by Travel
Spending, 2002-2008
(Millions of 2010 $)
2002
2003
2004
2005
2006
2007
$52.75
$29.09
2008
Source: California Travel Impacts by County, 2009 Preliminary State Estimates. Prepared for the
California Travel & Tourism Commission by Dean Runyan and Associates, April 2010. Adjusted for
inflation using the US Bureau of Labor Statistics Consumer Price Index.
www.sonomaedb.org 11
State
Local

2010 Tourism Industry Survey: results Summary
2010 Tourism Industry Survey:
Results Summary
The 2010 Tourism Industry Survey is an annual survey of Sonoma County tourism businesses
updated by the Sonoma County Economic Development Board (EDB). 193 respondents
representing local wineries, restaurants, lodging establishments, tours & transportation,
spa & wellness services, and tourism-related businesses responded to questions
regarding economic outlook, visitor and business demographics, and marketing strategies.
Key Findings include:
Businesses have a relatively positive outlook for the coming year, and they believe
international visitation has fared better than domestic visitation over the past year.
The vast majority of respondents considered exploring new programs for health and
wellness tourism and other niche markets as useful. Eco-tourism, cycling, and LGBT
(lesbian, gay, bisexual, transgendered) were markets rated as Sonoma County’s top
opportunities.
Most respondents believe Sonoma County has high potential to attract visitors
overall, and that scenery is its greatest asset besides wine reputation/culture.
Respondents feel local government can make a positive difference in the tourism
industry by assisting with licensing and permits and providing workforce education
and training. Local promotion agencies can best promote respondent businesses
through marketing, PR and media visits, and tourist and industry trend reports.
12
www.sonomaedb.org

Tourism Industry Survey
Survey Response Demographics
Owners and executives of roughly 200 diverse tourism
businesses responded to the EDB’s 2010 Tourism Industry Survey.
The following table indicates the percentage breakdown of the
tourism industry businesses responding to the survey. Lodging and
winery were the most common primary operations of responding
businesses at 50.7% and 22.8% respectively. Respondents also
noted other primary operations in restaurant (21.3%), spa/wellness
(5.9%), tour/transport (5.1%) and recreational service
provider/outfitter (4.4%), and other (24.3%) related businesses such
as event facilities and catering businesses among others. The
surveyed businesses reflect the diverse strength of Sonoma
County’s tourism industry.
Lodging Classifications:
Full-Service Lodging
Offering a full range of on-premises food and beverage service,
cocktail lounge, entertainment, conference facilities, shops and
recreational activities. Wide range of services provided by
uniformed staff on duty 24 hours.
Vacation Rentals
These properties are fully furnished condominiums, townhomes or
single-family homes - featuring amenities such as games, beach
equipment, DVD libraries, and a stocked kitchen - rented on a
temporary basis to tourists as an alternative to a hotel.
Bed & Breakfast
Smaller establishments emphasizing a more personal relationship
between operators and guests. Guest units tend to be individually
decorated. Rooms may not include some modern amenities and
may have a shared bathroom. Usually owner-operated, with a
common room, separate from the innkeeper's living quarters, where
guests and operators can interact during evening and breakfast
hours. A continental or full, hot breakfast is served and is included in
the room rate.
Limited-Service Lodging
Only the basic services and facilities are available. Self-service
aspects are predominant. Commonly, a continental breakfast may
be offered rather than having a restaurant on premises.
Campground
A place used for overnight stay in the outdoors, where an individual,
family, or group may camp. Consists of open pieces of ground
where a camper can pitch a tent or park an RV. Some campsites
have amenities including fire pits, picnic tables, utility hookups,
shower facilities, and more.
Source: AAA, www.aaa.com
Primary Operations* of
Responding tourism Industry
Businesses, 2010
Restaurant 21.3%
Winery 22.8%
Tour/Transport 5.1%
Spa/Wellness 5.9%
Lodging 50.7%
Recreational Service 4.4%
Provider/Outfitter
Other
24.3%
*Respondents were asked to select all primary operations. Therefore,
percentages will not add up to one hundred.
Demographic Profile of
Responding Lodging Properties,
(Respondent-Based) 2010
Campground
Vacation
Rentals
Full-Service Lodging (20.3%)
Vacation Rentals (23.2%)
Bed & Breakfast (26.1%)
B&B
Limited-Service
Full-Service
Limited-Service Lodging
(24.6%)
Campground (5.8%)
Source, all data: Tourism Industry Survey 2010, Sonoma County Economic
Development Board
www.sonomaedb.org 13

Tourism Industry Survey
Survey Response Demographics cont’d
Survey respondents represented businesses from all over
Sonoma County, with the largest proportion of responses coming
from the hubs of Santa Rosa, Healdsburg, Sonoma, and Sebastopol
with 21.5%, 10.5%, 8.7%, and 7.6% respectively. Almost half of these
organizations (43.8%) have been in business for 20 years or more,
though more than 20% have opened within the past five years.
A vast majority of respondent businesses employ 24 or fewer
employees (76.5%). Though the average percentage of part-time
employees reported was approximately 50%, there was significant
variance in the reported part-to-full time mix, reflecting the diverse
employment needs of different industries within the tourism sector.
89% of respondents describe their businesses as independently
owned within Sonoma County. Of those not independently owned,
only 7% claim to be part of a franchise
From responses given, local tourism industry businesses may be
described as independent, long-established, and relatively small
businesses. The overall number of tourism industry employees
increased slighty over 2008 in Sonoma County. Outside of the
proportionally few large tourism industry employers, growth should
be seen in expansion of current businesses and increase in new
tourism-related businesses throughout the county.
Number of Years in Business
in Sonoma County, 2010
20 or More Years
0-5 Years (22.6%)
6-10 Years (16.8%)
11-20 Years
0-5 Years
6-10 Years
11-20 Years (16.8%)
20 or More Years (43.8%)
Source, all data: Tourism Industry Survey 2010, Sonoma County
Economic Development Board
Top Sonoma County Respondent
Business Locations, 2010*
Number of Employees, 2010
25-49
50-99
100­
249
+250
24 or Fewer
40%
35%
30%
25%
20%
15%
10%
5%
24 or Fewer (76.5%)
25-49 (8.1%)
100-249 (4.4%)
250 or More (1.5%)
0%
Santa Rosa
Healdsburg
Sonoma
Windsor
Geyserville
Guerneville
Bodega Bay
Cloverdale
Glen Ellen
50-99 (9.6%) * Other locations include: Forestville, Kenwood, Occidental, The Sea Ranch,
Jenner,
Cotati, Gualala, Rohnert Park, Cazadero, Duncans Mills, Freestone, Fulton,
Graton,
Monte Rio, and Valley Ford.
14 www.sonomaedb.org

Tourism Industry Survey
Visitor Origins & Traveler Type
Each year Sonoma County hosts more than seven million
visitors. These visitors are a catalyst for local economic vitality,
contributing more than $1.3 billion in 2008 to the area’s economy.
Sonoma County’s award-winning wineries, spa experiences, and
miles of scenic Pacific Ocean coastline draw both domestic and
international visitors.
According to survey respondents, Sonoma County’s main visitor
origins are domestic, with the majority coming from “Other U.S.A.”
(not including California) (22.4%), “Other California” (California cities
not listed) (22.0%), and San Francisco (17.41%). When asked about
international visitation, respondents consistently list Europe,
Canada, and the United Kingdom as the top three areas of origin.
100%
80%
60%
40%
20%
Sonoma County International
Visitor Origins
(Respondent-Based), 2010
86.7%
74.1%
64.3%
73.4%
Further, respondents were asked to estimate their percentage
breakdown of business, leisure, and group travelers. Leisure travel
led the way with an average reported proportion of 71.1% of
visitors. Group and business travel were reported at similar averages
of 7.0% and 8.5% respectively. Meeting attendees comprised
3.3% of Sonoma County visitors. Another 10.1% were reported as
‘other,’ likely reflecting a lack of consistency and clarification in the
traveler-type classifications among different tourism businesses.
52.3% of respondents described the majority of their guests as
repeat visitors.
Please note that no data from the industry survey is weighted in the
analysis presented here. All data in this section is based on tourism
industry owner/executives reporting on their own market demographics.
Sonoma County Visitor origins,
(Respondent-Based), 2010
25%
20%
15%
10%
5%
0%
22.4%
22.0%
17.4%
U.S.A. (Not CA)
Other (California)
San Francisco
East Bay
Sacramento
Marin County
Los Angeles Region
Silicon Valley
International
San Diego
Seattle
Portland
Las Vegas
*Percentage indicates how often marked as one of top three visitor origins.
Source: Tourism Industry Survey 2010, Sonoma County Economic Development Board
0%
Europe
Canada
United Kingdom
Australia/New Zealand
Japan
Mexico
China
Other
Other Asia
India
Other Latin America
*Percentage indicates how often marked as one of top three visitor origins.
Source: Tourism Sector Survey 2010, Sonoma County Economic
Development Board
Travel Industry Association Top
Ten International Arrivals, 2009
CANADA, -5% FRANCE, -3%
MEXICO, -4% BRAZIL, +16%
UK, -15%
ITALY, -3%
JAPAN, -10% S KOREA, -2%
GERMANY, -5% AUSTRALIA, 5%
Source: International Visitation to the United States: A Statistical Summary of U.S. Arrivals (2009)
International Trade Administration Office of Travel and Tourism Industries. http://tinet.ita.doc.gov
Sonoma County Traveler Type
(Respondent-Based), 2010
Meeting
Group
Business
Other
Leisure
Leisure Travelers - 68.56% Group Travel - 17.40%
Business Travelers - 17.32% Meeting Attendee - 3.30%
Other - 15.65%
Source: Tourism Sector Survey 2010, Sonoma County Economic Development Board
www.sonomaedb.org 15

Tourism Industry Survey
Expansion, Industry Confidence/Outlook & Green Practices
Tourism business operations expanded in Sonoma
County despite the economic downturn, with 19.6% of respondents
citing an expansion in operations in 2009. Optimism for the next 12
months has increased significantly in comparison to last year, when
approximately 44% of responding establishments had a “somewhat
confident” or confident outlook for their operations in 2009. This
year, 69.8% feel “somewhat optimistic” or optimistic, while the
numbers of those neutral (12.2%) decreased. While tourism industry
confidence seems to be on the incline, many businesses chose
not to expand operations due to the adverse effects of the weak
economy over the past year.
Industry leaders do not believe the comparative value of the dollar
has resulted in an overall increase in visitation and spending in
2009. The majority of respondents feel that domestic visitation,
international visitation, and visitor spending has decreased at 45%,
42%, and 62% respectively. For much of 2009, international arrivals
were decreasing due to the global recession. Several European
nations cut back on travel to the United States over 2009 (See page
15). However, Brazil’s economic growth supported a 16% increase in
travel to the United States, as visitors from Australia had a year-over
increase of 5%.
In reaction to “greening” trends, the majority of respondents report
implementing new environmental practices in regard to water
conservation (71%), energy conservation (74%), waste reduction
(74%), and other issues (29%). Of those reporting new eco-friendly
practices, about half have successfully cut costs, while the other half
are unsure or do not believe these recently implemented practices
are saving their business money. Almost all customers made aware
of improved environmental practices reacted positively, though
51.6% of respondents feel that customers remain unaware of the
changes.
Results of Implementation of
Environmental Practices
(Respondent-Based), 2010
Percentage of Respondents That
Expanded Operations Over The Last
12 Months
No
N/A
Yes
Yes (19.6%) No (77.5%) N/A (2.9%)
Effect of the Comparative Value
of the Dollar on Tourism
Businesses in 2009
(Respondent-Based), 2010
Increase Decrease No Effect
Domestic
Visitation 22% 45% 34%
International
Visitation 21% 42% 37%
Visitor
Spending 13% 62% 25%
Sonoma County Tourism Industry
Outlook For The Next 12 Months
(Respondent-Based), 2010
Somewhat
Concerned
Concerned
Customer Reaction Successfully Cut Costs
60% 50
50%
40%
47.9%
51.6%
48.4%
40
30
Neutral
Optimistic
Somewhat
Optimistic
30%
20%
10%
26.4% 25.6%
0.0%
0% 0
Positive Negative Unaware Yes No Don’t Know
Source, all data: Tourism Industry Survey 2010, Sonoma County Economic Development Board
20
10
Optimistic (18.0%)
Somewhat
Optimistic (51.8%)
Neutral (12.2%)
Somewhat
Concerned (10.8%)
Concerned (7.2%)
16
www.sonomaedb.org

Tourism Industry Survey
Local Government Assistance, Promotional Assistance & Marketing
Sonoma County’s tourism industry is a diversified market
of service-oriented businesses and segmented customer markets.
This diversification results in a wide range of marketing channels
employed by businesses to reach out to customers.
Reflecting the increase in the provision of travel-related information
and popularity of user-generated and interactive marketing online,
respondents identified the Internet as the most widely used marketing
channel, used by 89.9% of respondent businesses. Membership
organizations, regional publications, direct mail, and local newspapers
are also frequently used marketing avenues.
Local government assistance in licensing/permits and
education/training are the most desired government assistance,
with 59% and 38.8% of respondents‘ selections respectively. A
significant amount of industry representatives provided `other’
suggestions, including special event assistance, destination marketing,
economic development, and business relocation/recruitment.
More than 90% of respondents suggested local promotional agencies
focus their efforts on marketing, with 76% citing PR/Media visits
as an area where local promotion agencies could help the tourism
industry. 46.6% of respondents find tourist and industry trend
reports useful.
Respondent businesses reported spending proportionally less
revenue on marketing than in 2009, but still more than in 2008.
Roughly 80% of respondents spend 0-5% or 5-10% of gross
revenues on marketing.
Percentage of Gross Revenue
Spent on Marketing,
2008 - 2010
Percentage of Respondents
50%
40%
30%
20%
10%
0%
0-5%
40.1%
40.8%
5-10%
16.2%
10-25%
25+
Source: Tourism Industry Survey 2010, 2009, & 2008 Sonoma County Economic Development Board
2008
2009
2010
2.8%
Licensing/Permits
Education/Training
Other
Crime Prevention
Workforce Sourcing
CPR/First Aid Training
Marketing
PR/Media Visits
Tourist/Industry
Trend Reports
Educational
Industry Events
Customer Service
Percentage of Respondents
Desired Focus for Local
Government Assistance, 2010
Other
16.4%
26.9%
26.1%
32.1%
38.8%
0% 10% 20% 30% 40% 50% 60%
Focus for Local Promotion
Agency Assistance, 2010
18.5%
6.8%
30.1%
46.6%
76.0%
91.1%
59.0%
*Percentage indicates how often marked as one of top three desired focus for local government
assistance.
Source: Tourism Industry Survey 2010, Sonoma County Economic Development Board
0% 20% 40% 60% 80% 100%
Source: Tourism Industry Survey 2010, Sonoma County Economic Development Board
Marketing Channels Utilized by
Tourism Businesses, 2010
100%
80%
60%
40%
20%
0%
89.9%
57.0%
Internet
Membership Orgs.
48.3%
Source: Tourism Industry Survey 2010, Sonoma County
Economic Development Board
Regional Publications
Direct Mail
Local Newspaper
Trade show
Radio
Other
National Magazine
Television
www.sonomaedb.org 17

Tourism Industry Survey
Attractions, Potential & Market Opportunities
Despite the current uncertain economic outlook, 84.7% of
industry representatives still believe Sonoma County has high
potential for attracting tourists and encouraging repeat visits. None
of the respondents feel Sonoma County has poor potential for
attracting visitors. Respondents attribute the high potential for
visitor attraction to numerous factors including: the diversity in
attractions and activities; national recognition of Sonoma County as
a premier wine destination; effective marketing of the region, and
reputation as an approachable and affordable getaway.
Other than wine, respondents recognize Sonoma County’s most
attractive assets as scenery (39.2%) and outdoor recreation (23.1%).
Correspondingly, eco-tourism is ranked as the emerging market
with greatest opportunity, chosen as one of three selections by
51.1% of respondents. Other markets recognized for high potential
include cycling (46%) and LGBT (33.1%).
Most Attractive Asset Other
Than Wine in Sonoma County
(Respondent-Based), 2010
Spa/Wellness
LGBT
Friendly
Agriculture
Culinary
Offerings
Other
Outdoor
Recreation
Scenery
Outdoor Recreation (23.1%) Spa/Wellness (4.2%)
Sonoma County’s Potential
for Attracting Visitors
(Respondent-Based), 2010
Scenery (39.2%)
Agriculture (2.1%)
Culinary Offerings (18.2%)
LGBT Friendly (2.1%)
Other (11.1%)
Medium
Potential
Low Potential
Source, all data: Tourism Industry Survey 2010, Sonoma County Economic
Development Board
High Potential
Niche Market Opportunities for
Sonoma County
(Respondent-Based), 2010
60%
High Potential (84.7%)
Low Potential (0.7%)
Medium Potential (14.6%)
Poor Potential (0%)
Why...
Diversity in attractions and activities
Proximity to Bay Area
Approachable & more affordable than competition
Effective marketing by local agencies
Percentage of Respondents
50%
40%
30%
20%
10%
51.1%
46.0%
33.1%
44.8%
13.4%
11.9%
Climate and scenery
National recognition as a premier wine destination
0%
Eco-Tourism
Cycling
LGBT
International
Spa Tourism
Art/Culture
Hiking
Multi-Generational/Family
Water Activities/Recreation
Other
Golf
Hispanic/ Minority
18 www.sonomaedb.org

Tourism Industry
Market Opportunities, Potential New Programs & Suggestions
Industry respondents cited many new opportunities for
expansion of Sonoma County’s tourism assets. More than 75% of
respondents believe new county-wide programs targeted to niche
markets would be useful or very useful. Only 1.4% of respondents
felt new programs to be useless or very useless.
The development of innovative health and wellness programs can
be an effective way of increasing visitors’ length of stay, encouraging
return visits, and differentiating Sonoma County. Health and
wellness tourism is an international trend set by health-conscious
consumers seeking to enhance their well-being through travel
experiences. Activities that fit under the scope of health and
wellness tourism include spa treatment, travel to scenic landscapes,
and yoga. 65.8% of respondents feel new health and wellness
programs would be somewhat useful, useful, or very useful, with
only 6.3% indicating these programs as useless or very useless.
A vast majority of respondents find both regional and countywide
marketing initiatives to be very useful, useful, or somewhat useful.
Of the two, county-wide efforts are seen as more successful, with
43.5% of respondents finding the initiatives useful or very useful,
compared with 34.8% for regional marketing initiatives. Many
respondents are satisfied with the performance of local agencies
When asked for suggestions on how to improve regional and
county-wide marketing, respondents offered an array of ideas.
Numerous industry representatives believe marketing non-wine
related activities, promoting regional differences, and providing
local education on current efforts would be beneficial to the tourism
industry.
New Niche Market Program
Usefulness
(Respondent-Based), 2010
Useless
Neutral
Very Useless
New Health & Wellness Program
Usefulness (Respondent-Based), 2010
nts
Percentage of Responde
40%
35%
30%
25%
20%
15%
10%
30%
25%
20%
15%
10%
5%
0%
5%
0%
6.4 %
4.3 %
16.1% 45.5 %
Very Useful
y Useful
23.1%
Useful
Useful
%
26.6
Somewhat
Useful
24.5%
Somewhat
Useful
Neutral
3.5%
Neutral
Somewhat
Useless
Useless
3.6%
5.0%
2.8%
3.5%
Very Useless
Effectiveness of Marketing
Initiatives
(Respondent-Based), 2010
Ver
37.1%
30.5%
30.0%
31.9%
20.7%
24.1%
0.0%
2.8%
Ver
Somewhat
Useless
Useless
2.1%
1.4%
y Useless
Somewhat
Useful
Useful
Very Useful
County-wide
Regional
Respondent Suggestions for
Improved Marketing, 2010
Market non-wine activities (e.g. family-friendly, etc.)
Very Useful (35.3%)
Useful (40.3%)
Somewhat Useful (15.8%)
Neutral (7.2%)
Useless (0.7%)
Very Useless (0.7%)
Promote the diversity of the county and its regional
differences
Highlight the county’s green tourism industry
Inform locals and businesses about ongoing efforts
*0% of respondents selected ‘Somewhat Useless’.
Source, all data: Tourism industry Survey 2010, Sonoma County Economic
Development Board
Purchase ad space in targeted publications (e.g. AAA,
Sunset, etc.)
www.sonomaedb.org 19

Methodology
The Sonoma County Economic Development Board (EDB) recently updated its 2010 survey of Sonoma County
tourism businesses in relation to the tourism industry. Owners and executives of roughly 200 tourism businesses
rated their confidence in the industry and identified changes and needs they expect at their businesses in the
near future. The responses covered businesses in a broad range of tourism establishments. The survey asked
tourism-centered businesses to respond to a broad array of questions about their market and marketing efforts,
their visitor demographics, their expansion plans, the demographics of the industry, and their opinion on key
county tourism policies. This report represents the findings from that survey as well as an analysis of those
responses.
In addition to the survey responses, the Sonoma County 2010 Annual Tourism Report also includes general
background information for the tourism industry on a regional and national level. Statistics presented represent
the most recently published data from the Travel Industry Association (TIA), www.tia.org, Smith Travel Research,
and the California Travel and Tourism Commission’s 2009 California Travel Impacts by County, prepared by Dean
Runyan & Associates and updated April 2010, www.visitcalifornia.com. The EDB used the U.S. Bureau of Labor
Statistics’ Consumer Price Index to adjust some data for inflation, http://www.bls.gov/. Lodging classifications
were defined by AAA, www.AAA.com. The EDB collected and compiled all TOT data from each Sonoma County
jurisdiction.
Please note that all survey data contained in this report is based on the information self-reported by respondents,
which was not factually verified by the EDB. The responses were then gathered into a database for analysis. Due
to the fact that survey respondents may provide no responses to some questions, the category percentages
indicated in the graphs for those questions may not add up to 100%. Where replies are mutually exclusive,
percentages may be slightly off due to rounding. Where replies are not mutually exclusive, percentages may total
more than 100%. As mentioned above, it was our intention to obtain averages that provide a general “snapshot”
of various issues for the hospitality/tourism industry in Sonoma County. Accordingly, the data averages are not
weighted by any factor or interest.
20
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www.sonomaedb.org

Acknowledgements
The 2010 Annual Tourism Report would not have been possible without the contributions of many
individuals.
Most of the credit for this study belongs to the local businesses that participated in the survey. Their
responses created the foundation upon which the tourism sector could be studied and analyzed.
Special acknowledgement is also due to Ken Fischang and Tim Zahner at the Sonoma County Tourism
Bureau for their invaluable suggestions and generous provision of statistical data on the tourism sector
in Sonoma County.
Finally, Justin Hayashi, Tourism Project Coordinator with the EDB, contributed a significant amount of
time and effort to the report through surveying administration, compilation, and organization of the
report, data, and survey findings. Justin Hayashi updated and consolidated the myriad data sources and
statistics from previous years to create this comprehensive analysis, and deserves special thanks.
Ben Stone
Executive Director

EDB
Sonoma County
Economic Development Board
With Acknowledgment and Appreciation to Local Key Businesses
Supporting Sonoma County Economic Development:
Director
Executive
Sponsor
County of Sonoma General Services, Real Estate Division County of Sonoma Board of Supervisors
Sonoma County Health Services Sonoma County Transportation & Public Works
www.sonomaedb.org