Annual Sonoma County Tourism Report 2010
Annual Sonoma County Tourism Report 2010
Annual Sonoma County Tourism Report 2010
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EDB<br />
<strong>Sonoma</strong> <strong>County</strong><br />
Economic Development Board<br />
<strong>Annual</strong> <strong>Tourism</strong> <strong>Report</strong><br />
2 0 1 0<br />
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<br />
1 I ntroduc tion<br />
Moody ’s Economy.com<br />
2 Moody ’s Economy.com <strong>Tourism</strong> Repor t<br />
<strong>Tourism</strong> Indicators<br />
6 <strong>Tourism</strong> I ndustr y I ndicators Summar y<br />
7 Destination Spending<br />
8 Destination Spending Breakdown<br />
9 I ndustr y Employment<br />
10 Lodging & Hospitality Assessment<br />
11 <strong>Tourism</strong> Generated Taxes<br />
<strong>Sonoma</strong> <strong>County</strong> <strong>Tourism</strong> Industry Survey<br />
12 <strong>Tourism</strong> I ndustr y Sur vey Summar y<br />
13 Sur vey Response Demographics<br />
14 Sur vey Response Demographics Continued<br />
15 Visitor Origins and Traveler Type<br />
16 Expansion, I ndustr y Confidence/Outlook & Green Prac tices<br />
17 Local Government Assistance, Promotional Assistance & Marketing<br />
18 Attrac tions, Potential & Market Oppor tunities<br />
19 Market Oppor tunities, Potential New Programs & Suggestions<br />
20 Methodology<br />
21 Ack nowledgements
Introduction<br />
<strong>2010</strong><br />
June <strong>2010</strong><br />
The <strong>Sonoma</strong> <strong>County</strong> Economic Development Board (EDB), in partnership with the <strong>Sonoma</strong> <strong>County</strong> <strong>Tourism</strong><br />
Bureau (SCTB), is pleased to bring you the <strong>2010</strong> <strong>Annual</strong> <strong>Tourism</strong> <strong>Report</strong>. The <strong>2010</strong> <strong>Annual</strong> <strong>Tourism</strong> report contains<br />
three sections integrating findings on the local tourism industry. The first section contains research conducted by<br />
our research partner, Moody’s Economy.com, on current industry vitality and long-term outlook. The next section<br />
of the report highlights key economic indicators produced by the California Travel & <strong>Tourism</strong> Commission and<br />
Smith Travel Research. The last section provides updated results of the EDB <strong>Annual</strong> <strong>Tourism</strong> Industry survey.<br />
Moody’s Economy.com is a leader in economic research and provides key quantitative and qualitative analysis on<br />
<strong>Sonoma</strong> <strong>County</strong>’s tourism industry. Key findings from Moody’s Economy.com <strong>2010</strong> <strong>Annual</strong> <strong>Tourism</strong> Update<br />
include:<br />
While air passenger traffc at the Charles M. Schultz-<strong>Sonoma</strong> <strong>County</strong> Airport fell by 9% in 2009, increases<br />
in passenger traffc to San Francisco International Airport, and more visitors driving up from the Bay Area,<br />
have helped offset some of the weakness in passenger volume at <strong>Sonoma</strong> <strong>County</strong> Airport.<br />
The continued strong popularity of wine and wine-related culture, and its expanding link between local<br />
food offerings and health and wellness activities, underpin a positive fundamental outlook for the<br />
county‘s tourism industry.<br />
The California Travel & <strong>Tourism</strong> Commission provides a `Travel Impacts by <strong>County</strong>’ report each year. This report<br />
provides the latest available economic impact figures for <strong>Sonoma</strong> <strong>County</strong> and, along with the most recent lodging<br />
statistics, these make up the primary sources behind the tourism industry indicators. Key findings include:<br />
Inflation-adjusted destination spending in <strong>Sonoma</strong> <strong>County</strong> showed a 0.9% decrease in 2008 after reaching<br />
a record high in 2007. Industry employment increased for the third consecutive year.<br />
Sluggish lodging performance statistics and transient occupancy tax receipts reflect the industry<br />
downturn, as year-over revenues decreased in 2009.<br />
Each year the EDB conducts an annual tourism industry survey of <strong>Sonoma</strong> <strong>County</strong> business owners and executives<br />
involved in tourism focusing on complete industry strength, confidence, and opportunities. Key findings<br />
from this survey include:<br />
There are many niche market opportunities for <strong>Sonoma</strong> <strong>County</strong>’s tourism industry. Strong survey support<br />
was shown for programs in health and wellness tourism as well as eco-tourism, cycling, and LGBT (lesbian,<br />
gay, bisexual, transgendered).<br />
The majority of respondents chose not to expand operations over the past year, largely due to the economic<br />
downturn. However, reporting tourism businesses have a generally positive outlook for this year.<br />
Thank you for your continued interest in the Economic Development Board’s research. As always, if you have any<br />
questions, please feel free to contact us at 707-565-7170.<br />
Sincerely,<br />
Ben Stone<br />
Executive Director<br />
All information contained within this report was obtained from sources believed to be accurate, but the <strong>Sonoma</strong> <strong>County</strong> <strong>Tourism</strong> Bureau (SCTB) and the<br />
Economic Development Board (EDB) do not guarantee that it is accurate or complete. The most recent published data was included in this report, and<br />
where appropriate, that data has been adjusted using the U.S. Bureau of Labor Statistics Consumer Price Index. This report is intended for informational<br />
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.<br />
www.sonomaedb.org 1
Moody’s Economy.com<br />
Recent Trends & Macro Drivers<br />
Recent Trends<br />
<strong>Sonoma</strong> <strong>County</strong>’s tourism industry is struggling, but the worst of<br />
this business cycle has passed. Leisure/hospitality employment is<br />
down 2.6% from one year ago, a loss of just over 500 jobs. However,<br />
the pace of decline is steadily easing, and payrolls have rebounded<br />
slightly from a low point reached during the weak summer 2009<br />
tourism season. Through the recession, the tourism industry in<br />
<strong>Sonoma</strong> <strong>County</strong> declined less severely than the economy as a<br />
whole.<br />
Indicators of tourism demand have been universally weak. Air<br />
traffic through Charles M. Schultz-<strong>Sonoma</strong> <strong>County</strong> Airport fell by<br />
9% from 2008 to 2009, exceeding the national decline of 6%. With<br />
fewer passengers, occupancy dropped from 73% of saleable seats<br />
to 71%. The latest data, which extend through March, show that<br />
weakness is moderating only slightly, with passenger volumes still<br />
down 5% from one year earlier. Fortunately, passenger traffic is<br />
rising at San Francisco International Airport, and more visitors<br />
driving up from the Bay Area has helped offset some of the weakness<br />
in passenger volume at <strong>Sonoma</strong> <strong>County</strong> Airport.<br />
Hotel occupancy is low, but it has improved slightly over the past<br />
year. According to data from Smith Travel Research, <strong>Sonoma</strong><br />
<strong>County</strong>’s hotel occupancy rate was 46.4% in February, up 1.8<br />
percentage points from a year before. However, hotels have significantly<br />
cut prices to draw this volume. The average daily room rate<br />
has fallen from $97.91 to $90.90 over the same period. Even though<br />
hotels are filling more of their rooms, revenue from room sales is<br />
down 3.4% because of lower prices.<br />
The tough tourism market is causing trouble for hotel owners.<br />
Three hotels in <strong>Sonoma</strong> <strong>County</strong> have defaulted on loans in the past<br />
year and are now operating under restructuring-oriented management.<br />
Hotel construction is practically nonexistent, and the market<br />
has added an insignificant number of new rooms over the past<br />
year.<br />
Although hotels are struggling to make money, the number of<br />
guest nights stayed is increasing as measured by Smith Travel<br />
Research, an encouraging sign for other tourism businesses. There<br />
is evidence that travelers are taking money saved on hotels and<br />
spending it on other vacation interests. Nationwide, tourist spending<br />
on food and beverages, recreation and entertainment, and<br />
shopping increased ever so slightly in the final quarter of 2009.<br />
Macro Drivers<br />
The U.S. economic recovery is slowly gaining traction. Real GDP has<br />
been growing since the middle of last year—most recently posting<br />
5.6% annualized growth in the fourth quarter of 2009. There are a<br />
significant number of challenges hindering the transition from<br />
recovery to a self-sustaining economic expansion, but policymak-<br />
2 www.sonomaedb.org<br />
<strong>Sonoma</strong> <strong>Tourism</strong> Occupies Middle Ground<br />
Leisure and hospitality payrolls, index, Jan-09=100<br />
101<br />
<strong>Sonoma</strong> <strong>County</strong> California U.S.<br />
100<br />
99<br />
98<br />
97<br />
96<br />
95<br />
94<br />
Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10<br />
Source: BLS<br />
While leisure and hospitality payrolls losses are no longer accelerating, their<br />
performance is still below where it was at the beginning of 2009. <strong>Sonoma</strong><br />
<strong>County</strong> is performing average at best, outperforming the state, but lagging<br />
the national number. On the whole, the West region has been the worst<br />
performing in the nation through the 2008-’09 recession, dragged down by<br />
the widespread and severe housing crisis. This hurts prospects for a fast<br />
rebound in leisure and hospitality payrolls as many regional metro areas are<br />
still dealing with rising foreclosures and falling house prices.<br />
ers appear willing and able to provide enough<br />
monetary and fiscal support to overcome them. The<br />
U.S. economy should grow 2.9% through the course<br />
of <strong>2010</strong>, and then accelerate to growth near 4% and<br />
5% respectively in 2011 and 2012.<br />
The job market is turning the corner to growth from<br />
decline. The hiring rate has stopped declining and<br />
the preconditions for increased hiring are coming<br />
into place. Demand has stabilized, corporate profits<br />
and cash flow are up strongly, and labor costs are<br />
falling rapidly. Census hiring will create several<br />
thousand temporary jobs lasting through the<br />
summer, and although the job market will weaken<br />
again when census employment fades, businesses<br />
should have begun sustainable hiring by then.<br />
Unemployment figures will lag job creation because<br />
many residents who are sitting on the sidelines will<br />
rejoin the search for work as more jobs become<br />
available. This will extend weakness in the consumer<br />
sector, with the unemployment rate unlikely to peak<br />
until the third or fourth quarter and personal income<br />
set to grow only 2% this year. However, labor market<br />
slack will be a boon for businesses as they use<br />
intense labor market competition to keep compensation<br />
costs down.
Moody’s Economy.com<br />
Industry Drivers & Pricing<br />
Macro Drivers Cont’d<br />
The Federal Reserve has shown a willingness to hold lending rates<br />
low to sustain the nascent expansion, and interest rate tightening is<br />
unlikely before 2011. Despite easy access to money, economic<br />
challenges have effectively kept inflation fears in check.<br />
Industry Drivers<br />
Consumer confidence has improved slightly but is far from encouraging.<br />
Sentiment has brightened since the darkest days of the recession,<br />
but according to the Conference Board and University of Michigan<br />
surveys, it still is not much higher today than during the low points of<br />
previous, less severe, recessions. Wealthier households—the primary<br />
<strong>Sonoma</strong> <strong>County</strong> tourist demographic—are unsettled about their<br />
diminished nest eggs. They are in much better shape financially than<br />
they were a year ago when stock and house prices were at their<br />
cyclical lows, but household net worth is still almost 20% below its<br />
pre-recession peak.<br />
Only 31% of U.S. residents plan to take a domestic vacation in the<br />
next six months according to the Conference Board. This is down<br />
from more than 36% before the onset of recession. Over the past year,<br />
vacation expectations have improved slightly, but the latest figure<br />
shows that the economy still has to improve further before consumers<br />
revisit their boom-period vacation plans. Business spending is just<br />
beginning to emerge from recession-period freezes. This should<br />
increase business travel to <strong>Sonoma</strong> <strong>County</strong> steadily through the<br />
coming year, but it is rebounding from an exceptionally low level.<br />
The outlook for depreciation of the U.S. dollar, which would encourage<br />
U.S. residents to vacation domestically and draw more visitors<br />
from abroad, is doubtful in the near term. The value of the U.S. dollar<br />
has remained largely unchanged since the financial crisis and Great<br />
Recession hit in 2007, intermittently weathering offsetting fluctuations<br />
tied to the level of angst in the global financial system. The<br />
outlook for the U.S. dollar is relatively stable, and concerns that it is at<br />
risk of rapid decline are overblown. The dollar accounts for nearly<br />
two-thirds of global reserves, and that is unlikely to change as the U.S.<br />
is far and away the world’s largest and most stable economy and the<br />
predominant player in global trade.<br />
Many retailers and restaurants draw overlapping business from<br />
tourists and local residents, and <strong>Sonoma</strong> <strong>County</strong>’s endogenous<br />
economic conditions play an important role in the tourism industry’s<br />
performance. <strong>Sonoma</strong> <strong>County</strong> is gradually crawling out of recession<br />
with rebounding tech businesses leading the way. However, poor<br />
state and local government finances are hindering public sector<br />
employment. <strong>Sonoma</strong> <strong>County</strong>’s economic performance in the near<br />
term will keep local demand for retail and restaurants stable.<br />
Higher oil prices will increase travel costs for vacationers who fly or<br />
Tourist Destinations Struggled in 2009<br />
Hotel occupancy rate, %<br />
80<br />
75<br />
2008 2009<br />
70<br />
65<br />
60<br />
55<br />
50<br />
45<br />
40<br />
U.S. California <strong>Sonoma</strong><br />
<strong>County</strong><br />
Source: Smith Travel Research<br />
Napa<br />
Valley<br />
San<br />
Francisco<br />
Oakland<br />
Leisure and hospitality payrolls are also unlikely to rebound until there is an<br />
improvement in occupancy rates for hotels. In 2009 there was an almost<br />
universal decline in occupancy rates across the country. This fall in occupants<br />
decreased hotels’ ability to control pricing, forcing them to operate on lower<br />
margins. They were helped slightly by lower operating costs, but even that<br />
was not enough to completely compensate. <strong>Sonoma</strong> <strong>County</strong> dealt with rising<br />
hotel foreclosures and bankruptcies in 2009. Local hotels will be looking to<br />
regain some price control in <strong>2010</strong>.<br />
drive considerable distances, reducing the amount<br />
they will spend during their stay in <strong>Sonoma</strong> <strong>County</strong>.<br />
Energy prices have risen significantly as the global<br />
economic recovery has matured. Oil averaged just<br />
over $81 per barrel during March, a 69% increase<br />
from one year earlier.<br />
Terminal improvements underway at Charles M.<br />
Schultz-<strong>Sonoma</strong> <strong>County</strong> Airport will update security<br />
systems and expand passenger areas. This $1.7<br />
million federal stimulus-funded project does not<br />
constitute a major expansion of capacity and alone<br />
will not be enough to encourage new carriers to<br />
serve the airport. Substantial improvements in both<br />
the local and national economy and increased<br />
marketing campaigns will also be needed to attract<br />
additional service.<br />
Pricing<br />
Consumers will absorb only the slightest price<br />
increases through the coming year as the still<br />
weakened job market limits their willingness and<br />
ability to spend. After declining in 2009, wages will<br />
grow 2% through the course of this year. Although<br />
an improvement, this is low by historical standards<br />
and rising commodity prices will absorb much of the<br />
income gains.<br />
www.sonomaedb.org 3
Moody’s Economy.com<br />
Operating expenses, Profitability, & Long-Term Outlook<br />
Pricing Cont’d<br />
Local hotels had to sharply cut prices in 2009 to attract customers.<br />
The price cuts resulted in a decline for overall revenues according to<br />
Smith Travel Research. Further price declines are likely—room rates<br />
currently exceed those in Napa Valley—but the magnitude of price<br />
declines should be less severe than last year as hotels attempt to<br />
protect revenue levels. Fortunately, hotel construction is on hold,<br />
preserving what pricing power hoteliers still have.<br />
Nationwide, Moody’s Economy.com forecasts prices for food outside<br />
of the home to increase only 1.7% this year. This is down from a 3.5%<br />
increase in 2009 and will result in low revenue growth for restaurants.<br />
Operating Expenses<br />
Input costs for tourism businesses will increase only modestly this<br />
year. Labor costs, a major expenditure for the tourism industry, should<br />
stay low through this year because of significant labor market slack.<br />
<strong>Sonoma</strong> <strong>County</strong>’s unemployment rate is 10.7%, one percentage point<br />
higher than the U.S. average, and it is unlikely to peak before summer.<br />
The poor commercial real estate market will also help keep rents<br />
down. The commercial market is flooded with space because of<br />
recession-period business closures and contractions. Tenants have<br />
the upper hand in rent negotiations and tourism businesses will look<br />
to lock in extended leases at low present rates.<br />
Food costs will increase slightly this year, raising expenditures for<br />
restaurants. However, agricultural markets have stabilized considerably<br />
from their boom-period heights at the beginning of the recession<br />
and food prices will remain far below levels in recent years.<br />
Profitability<br />
Operating cost increases will be modest, but still enough to hold<br />
down profits. Hotel operators face a profit outlook that is nearly as<br />
bleak as last year’s. Competition for a still-subdued volume of travelers<br />
will lead to price cuts that eat away at profit. Low input costs will<br />
enable hotels to sustain low prices, but will do little to help profits.<br />
The upside of low prices is that they may draw new visitors to<br />
<strong>Sonoma</strong> <strong>County</strong> who will continue to visit in better economic times.<br />
Higher food prices will squeeze restaurants margins slightly. Restaurants<br />
will be hard pressed to pass the full extent of increased food<br />
costs on to their customers during a period of low demand. However,<br />
food accounts for only one third of restaurant expenses, and limited<br />
growth in labor and real estate costs will help preserve balance<br />
sheets.<br />
Winery profitability could take a tumble if new legislation emerges to<br />
restrict operating hours. Wineries face fixed costs that are easier to<br />
cover with longer tasting hours. If tasting hours are restricted, some<br />
4 www.sonomaedb.org<br />
Commercial Hotel Markets Seeing Improvements<br />
Change yr ago, NSA<br />
800<br />
600<br />
400<br />
200<br />
0<br />
-200<br />
-400 U.S. hotel/motel loan amount<br />
committed, mil<br />
-600<br />
CA hotel permits, ths<br />
-800<br />
2004Q1 2005Q1 2006Q1 2007Q1 2008Q1 2009Q1<br />
Sources: Construction Industry Research Board, American Council of Life Insurers<br />
wineries may close their tasting rooms to preserve<br />
profits, limiting <strong>Sonoma</strong> <strong>County</strong>’s overall tourism<br />
draw. Moreover, tasting hours that extend into the<br />
evening could encourage overnight stays from<br />
regional travelers, benefitting local hotels and<br />
restaurants.<br />
Long-Term Outlook<br />
The long-term outlook for <strong>Sonoma</strong> <strong>County</strong>’s tourism<br />
industry remains positive. The region is growing in<br />
recognition as a premier tourist destination, and its<br />
proximity to Bay Area attractions and airports will<br />
continue to support tourist traffic. Direct air access is<br />
a plus, although further expansion would improve<br />
<strong>Sonoma</strong> <strong>County</strong>'s attractiveness. Moreover, the<br />
continued strong popularity of wine and the winerelated<br />
culture and its expanding link between local<br />
food offerings and health and wellness activities<br />
underpin the positive fundamental outlook for the<br />
industry.<br />
300<br />
200<br />
100<br />
0<br />
-100<br />
-200<br />
-300<br />
-400<br />
The commercial real estate market fall lagged the residential one, but it has<br />
been rather severe. The lack of easy credit availability that marked the<br />
beginning of the recession and low demand for hotel rooms began resulting<br />
in a severe slowing of hotel construction activity. While the decline has<br />
slowed, hotel permit issuance for California has yet to turn positive on a<br />
year-ago basis, and creditors are still lending only with caution. Weak<br />
demand is still pervasive, although consumers are starting to pick up steam,<br />
making the prospect of more hotel projects more likely for 2011.
Moody’s Economy.com<br />
Long-term Outlook-Continued, Upside & Downside Risks<br />
Long-Term Outlook cont’d<br />
Demographic trends are favorable, with some of the fastest growing<br />
states within driving distance of the California wine region, and<br />
increased access to international tourists from Asia and South<br />
America. Wine consumption is growing among the "millennial"<br />
generation now aged 15 to 32, and the pool of potential visitors will<br />
grow as incomes for this cohort steadily increase.<br />
Upside Risks<br />
A stronger than expected rebound for consumer or business spending<br />
would boost tourism in <strong>Sonoma</strong> <strong>County</strong>. Labor markets are one<br />
of the last pieces of the economy to recover following a recession,<br />
and the current weak job market is discouraging consumers. If labor<br />
conditions improve ahead of existing projections, consumers will<br />
more quickly return to their free-spending ways, including more<br />
vacations to the wine country. Moreover, businesses are eking out<br />
profits through cost savings, placing strong scrutiny on travel<br />
expenses. If sales growth begins to accelerate strongly, cost oversight<br />
will ease bringing corporate travel and junkets back to<br />
<strong>Sonoma</strong> <strong>County</strong> more quickly than anticipated.<br />
The greater San Francisco area is on track to build back to<br />
pre-recession levels of economic activity over the next several years.<br />
However, if unexpectedly strong tech performance or significant<br />
new investments accelerate the rebound, greater local wealth will<br />
lead to a surge in driving distance tourist activity in <strong>Sonoma</strong> <strong>County</strong>.<br />
China could grow as a source of foreign tourism, as it has the potential<br />
to exceed U.S. growth. If China can sustain its rapid pace of<br />
expansion, new wealth will boost tourist volume. Moreover, if China<br />
agrees to U.S. requests to revalue the yuan, U.S. purchases would<br />
become more affordable, further encouraging travel to <strong>Sonoma</strong><br />
<strong>County</strong>.<br />
Downside Risks<br />
Although the U.S. economy is drawing closer to self-sustainable<br />
recovery, the next few months will be a high-risk period, and policy<br />
or corporate missteps could put the economy back into recession. A<br />
double-dip recession would unwind recent consumer and business<br />
travel gains, setting off another wave of severe layoffs and business<br />
closures in <strong>Sonoma</strong> <strong>County</strong>.<br />
Assuming the U.S. recovery does proceed smoothly, an unexpected<br />
rise in oil prices could still pull back tourism demand. Higher oil<br />
prices would increase travel costs to <strong>Sonoma</strong> <strong>County</strong> further. This<br />
would result in shorter stays and lower sales for local retailers.<br />
Rising Commodity Prices Provide Downside Risk<br />
15<br />
10<br />
5<br />
0<br />
-5<br />
-10<br />
-15<br />
San Francisco air passenger<br />
traffic, % change yr ago (L)<br />
would strongly boost the value of the dollar, chasing<br />
away European tourists. Greek debt will face intense<br />
scrutiny for the next several years.<br />
Finally, <strong>Sonoma</strong> <strong>County</strong>’s popularity is always at risk<br />
if fashions change. Wine’s popularity is likely to<br />
persist, but a permanent shift towards value-priced<br />
wines over high-priced quality wines could diminish<br />
interest in visiting <strong>Sonoma</strong>’s wine country.<br />
Produced by:<br />
Addison Franz and Morgan McGowan<br />
April <strong>2010</strong>, Moody’s Economy.com, Inc.<br />
Oil prices<br />
$ per bbl (R)<br />
Jan-08 Jul-08 Jan-09 Jul-09 Jan-10<br />
Sources: San Francisco International Airport, Federal Reserve Bank of St. Louis<br />
About Moody’s Economy.com<br />
Moody's Economy.com, a division of Moody's<br />
Analytics, is a leading independent provider of<br />
economic, financial, country, and industry research<br />
designed to meet the diverse planning and information<br />
needs of businesses, governments, and professional<br />
investors worldwide.<br />
140<br />
120<br />
100<br />
While most indications are that the worst is behind tourism-related<br />
industries, hotels are still sensitive to increases in commodity price increases.<br />
The negative effect of increases in commodity prices both on transportation<br />
prices and on consumers’ discretionary spending will be a downside risk. Air<br />
passenger traffc is on the rise, but large increases in ticket prices could<br />
discourage tourists from the <strong>Sonoma</strong> <strong>County</strong> area. The West region is still<br />
performing more poorly than much of the nation, increasing the importance<br />
of non-local tourists. High commodity prices could disrupt the expected<br />
recovery.<br />
80<br />
60<br />
40<br />
20<br />
Although relatively unlikely, sovereign defaults in the Euro Zone<br />
www.sonomaedb.org 5
<strong>Tourism</strong> Industry Indicators<br />
<strong>Sonoma</strong> <strong>County</strong> <br />
<strong>Tourism</strong> Industry Indicators <br />
The <strong>Tourism</strong> Industry Indicators section is based on data prepared for the California Travel<br />
and <strong>Tourism</strong> Commission by Dean Runyan and Associates, industry data from Smith Travel<br />
Research, and <strong>Sonoma</strong> <strong>County</strong>’s Transient Occupancy Tax receipts. Where applicable, the<br />
data and graphs in this section have been adjusted for inflation using the U.S. Bureau of Labor<br />
and Statistics Consumer Price Index.<br />
In this section, Santa Barbara and Napa are used as comparison counties because of their<br />
similarities in offerings, size, and geographical location. The featured data is the latest available<br />
from the California Travel & <strong>Tourism</strong> Commission.<br />
Key findings include:<br />
In 2008, <strong>Sonoma</strong> <strong>County</strong> destination spending and industry earnings saw a<br />
year-over decrease from 2007 (after adjusting for inflation), while industry<br />
employment continues to increase for the third consecutive year.<br />
In 2009, <strong>Sonoma</strong> <strong>County</strong>’s year-over average daily rate decreased 10.9%<br />
nominally and 10.6% when adjusted for inflation.<br />
<strong>Sonoma</strong> <strong>County</strong>’s Transient Occupancy Tax receipts totaled $18.02 million in<br />
2009 after adjusting for inflation.<br />
6<br />
www.sonomaedb.org
Destination Spending<br />
Total, Per Capita & Growth<br />
Destination spending is the total amount spent by<br />
visitors in <strong>Sonoma</strong> <strong>County</strong>. This indicator includes all visitor spending<br />
for accommodations, wine activities, retail, and other tourismrelated<br />
purchases. The most recent inflation-adjusted figures show<br />
that <strong>Sonoma</strong> <strong>County</strong>’s destination spending was down -0.9% from<br />
$1.36 billion in 2007 to $1.35 billion in 2008.<br />
$2000<br />
Destination Spending,<br />
2002 - 2008 (Millions of <strong>2010</strong> $)<br />
The -0.9% decrease in 2008 was the first year-over-year decrease in<br />
destination spending in <strong>Sonoma</strong> <strong>County</strong> since 2002 (-1.2%). The<br />
decline in destination spending was a common trend in numerous<br />
counties in California. <strong>Sonoma</strong> <strong>County</strong>’s inflation-adjusted destination<br />
spending in 2008 surpassed the statewide average of -1.3%,<br />
but was lower than Napa <strong>County</strong> (1.63%) and Santa Barbara <strong>County</strong><br />
(-0.4%).<br />
$1500<br />
$1000<br />
$1.48b<br />
$1.35b<br />
$1.04b<br />
Total destination spending in Santa Barbara, Napa and <strong>Sonoma</strong><br />
totaled $3.87 billion in 2008, remaining flat from the inflationadjusted<br />
figure in 2007 ($3.87 billion). <strong>Sonoma</strong> <strong>County</strong> generated<br />
34.9%; and Santa Barbara and Napa generate 38.2% and 26.9%,<br />
respectively. California’s inflation-adjusted destination spending in<br />
2008 was $98.1 billion.<br />
In 2008, for each of <strong>Sonoma</strong> <strong>County</strong>’s 490,231 residents, $2,757.90<br />
in destination spending was generated. Santa Barbara, with a<br />
population of 432,981, generated $3,416.80 per capita, and Napa<br />
generated the highest per-capita rate of the three with $7,487.80<br />
for each of its 138,451 residents. Napa <strong>County</strong> has consistently high<br />
per-capita figures due to its relatively small population.<br />
<strong>Sonoma</strong> <strong>County</strong> destination spending per capita fell short of Napa<br />
and Santa Barbara, but it outpaced the statewide average of<br />
$2,573.60 per capita.<br />
$500<br />
10%<br />
8%<br />
2002<br />
2003<br />
Napa<br />
2004<br />
2005<br />
<strong>Sonoma</strong><br />
2006<br />
2007<br />
2008<br />
Santa Barbara<br />
Source, all data: California Travel Impacts by <strong>County</strong>, 2009 Preliminary<br />
State Estimates. Prepared for the California Travel & <strong>Tourism</strong> Commission<br />
by Dean Runyan and Associates, April <strong>2010</strong>. State of California,<br />
Department of Finance, California <strong>County</strong> Population Estimates and<br />
Components of Change by Year, July 1, 2000-2009. Sacramento,<br />
California, December 2009. Adjusted for inflation using the US Bureau of<br />
Labor Statistics Consumer Price Index.<br />
Destination Spending<br />
<strong>Annual</strong> Real Growth Rates,<br />
2003 - 2008<br />
Destination Spending Per Capita,<br />
2008 (<strong>2010</strong> $)<br />
$8000<br />
$7000<br />
$7,488<br />
$6000<br />
$5000<br />
$4000<br />
$3000<br />
$3,417<br />
$2,758<br />
$2000<br />
$2,574<br />
6%<br />
4%<br />
2%<br />
0%<br />
-2%<br />
-4%<br />
-6%<br />
-1.3%<br />
California<br />
2003<br />
Napa<br />
2004<br />
1.63% 6.66%<br />
6.66%<br />
2.33%<br />
-0.9%<br />
-0.4%<br />
<strong>Sonoma</strong> Santa Barbara<br />
2005<br />
$1000<br />
$0<br />
California<br />
Napa<br />
<strong>Sonoma</strong><br />
Santa Barbara<br />
2006<br />
2007 2008<br />
www.sonomaedb.org 7
Destination Spending Breakdown<br />
AS in previous years, the overall distribution of commodity-based<br />
visitor spending in <strong>Sonoma</strong> <strong>County</strong> is comparable to the featured<br />
competitive counties and the statewide average. However, there are<br />
several areas where <strong>Sonoma</strong> <strong>County</strong> appears to be somewhat<br />
unique.<br />
Visitors to <strong>Sonoma</strong> <strong>County</strong> devote a smaller share of their spending<br />
towards accommodations: 17.9% of all spending, compared to<br />
24.2% in Santa Barbara and 25.7% in Napa. Compared to California,<br />
<strong>Sonoma</strong> <strong>County</strong> visitors spend an approximately equal share on<br />
accommodations, food and beverage services, and food stores.<br />
Visitors to both Napa and <strong>Sonoma</strong> counties spend proportionally<br />
more than the state averages on arts/entertainment/recreation and<br />
retail sales.<br />
In comparison with the state and other competitive counties, a<br />
smaller share of visitor spending in <strong>Sonoma</strong> <strong>County</strong> comes from<br />
visitors who are staying in a hotel or motel (45.8% compared to<br />
62.8%, 71.1% and 53.9% for the Santa Barbara, Napa and the state<br />
respectively). Instead, a significant share of <strong>Sonoma</strong> <strong>County</strong> visitor<br />
spending is received from day travelers (30.8%), compared to 22.1%<br />
for Santa Barbara, 27.1% for Napa, and 24.9% for the state.<br />
Although it represents a smaller share of spending, 8.5% of <strong>Sonoma</strong><br />
<strong>County</strong> visitor spending comes from visitors staying in vacation<br />
homes, compared to 2.5%, 2.2% and 4.6% for Santa Barbara, Napa<br />
and the state, respectively.<br />
$350<br />
$300<br />
Visitor Spending by Commodity, 2008<br />
(Millions of <strong>2010</strong> $)<br />
$329<br />
Distribution of Visitor Spending<br />
by Commodity, 2008<br />
30%<br />
25%<br />
20%<br />
15%<br />
10%<br />
5%<br />
0%<br />
Accommodations<br />
Food & Beverage Services<br />
California<br />
Food Stores<br />
Ground Trans. & Fuel<br />
Napa<br />
Arts, Entertainment<br />
& Recreation<br />
Retail Sales<br />
<strong>Sonoma</strong><br />
Air Trans.<br />
Santa Barbara<br />
Source, all data: California Travel Impacts by <strong>County</strong>, 2009<br />
Preliminary State Estimates. Prepared for the California Travel &<br />
<strong>Tourism</strong> Commission by Dean Runyan and Associates, April <strong>2010</strong>.<br />
Adjusted for inflation using the US Bureau of Labor Statistics<br />
Consumer Price Index.<br />
Distribution of Visitor Spending<br />
by Accommodation, 2008<br />
70%<br />
60%<br />
$250<br />
$200<br />
$150<br />
$241<br />
$222<br />
$251 $258<br />
50%<br />
40%<br />
30%<br />
20%<br />
$100<br />
10%<br />
$50<br />
$0<br />
Accommodations<br />
Food & Beverage<br />
Services<br />
8 www.sonomaedb.org<br />
$47<br />
Food Stores<br />
Ground Trans.<br />
& Motor Fuel<br />
Arts, Entertainment<br />
& Recreation<br />
Retail Sales<br />
$0<br />
Air Transportation<br />
0%<br />
Hotel, Motel<br />
Private Campground<br />
Public Campground<br />
Private Home<br />
Vacation Home<br />
Day Travel<br />
California Napa <strong>Sonoma</strong> Santa Barbara
Industry Employment<br />
Industry employment, Earnings, No. of Jobs, & Growth<br />
Travel spending in <strong>Sonoma</strong> <strong>County</strong> has a significant impact<br />
on the local economy, contributing an inflation-adjusted $432<br />
million in annual wages in 2008.<br />
With 16,970 jobs generated by tourist destination spending,<br />
<strong>Sonoma</strong> <strong>County</strong> ranks #1 against comparable counties - Napa:<br />
11,750 jobs and Santa Barbara: 16,400 jobs. <strong>Sonoma</strong> <strong>County</strong>’s 2008<br />
job figures show a 1.0% increase over 2007, down from a year-over<br />
growth rate of 5.7% from 2006 to 2007.<br />
Partly as a result of <strong>Sonoma</strong> <strong>County</strong>’s decline in destination spending<br />
in 2008, employment levels in the tourism industry grew less in<br />
2008 than in 2007. However, due to <strong>Sonoma</strong> <strong>County</strong>’s significant<br />
increases in destination spending from 2006-2007, the county now<br />
employs more tourism industry employees than Napa and even<br />
Santa Barbara, a county in which total destination spending consistently<br />
outpaces that of <strong>Sonoma</strong> <strong>County</strong>. Due to discrepancies in<br />
growth between inflation-adjusted industry earnings (-0.8%) and<br />
industry employment (1.0%), earnings per employee decreased<br />
1.8% in 2008. Santa Barbara (-2.3%) and Napa counties (-1.5%) also<br />
saw a decrease in earnings per employee in 2008, while the statewide<br />
average saw an increase of 3.4%. California’s increase in<br />
earnings per employee is largely attributable to a disproportionately<br />
significant decrease in tourism industry jobs (-5.0%) relative to<br />
industry earnings (-1.8%).<br />
Distribution of employment within <strong>Sonoma</strong> <strong>County</strong>’s tourism<br />
industry is similar to previous years, with 51.4% in accommodations<br />
or food service, 39.2% in arts, entertainment and recreation, and<br />
8.5% in retail. In the coming years, air transportation is expected to<br />
be a new source of employment, due to the opening and expansion<br />
of air service to <strong>Sonoma</strong> <strong>County</strong>.<br />
Accommodations & Food Services (51.42%)<br />
Arts, Entertainment & Recreation (39.21%)<br />
Retail (8.49%)<br />
<strong>Sonoma</strong> <strong>County</strong> <strong>Tourism</strong><br />
Employment by Industry, 2008<br />
Auto Rental &<br />
Ground Trans.<br />
Retail<br />
Arts, Ent., & Rec<br />
Other Travel<br />
Accommodations &<br />
Food Services<br />
Auto Rental & Ground Trans.<br />
(0.59%)<br />
Other Travel (0.29%)<br />
# Of Jobs<br />
17,000<br />
14,000<br />
11,000<br />
8,000<br />
$40,000<br />
$35,000<br />
$30,000<br />
$25,000<br />
$20,000<br />
$15,000<br />
$10,000<br />
$5,000<br />
Employment Generated by<br />
Destination Spending,<br />
2003 - 2008 (No. Of Jobs)<br />
Napa<br />
<strong>Sonoma</strong><br />
Santa Barbara<br />
<strong>Tourism</strong> Industry Earnings per<br />
Employee, 2003 - 2008 (<strong>2010</strong> $)<br />
$0<br />
California Napa <strong>Sonoma</strong> Santa Barbara<br />
Source, all data: California Travel Impacts by <strong>County</strong>, 2009<br />
Preliminary State Estimates. Prepared for the California Travel &<br />
<strong>Tourism</strong> Commission by Dean Runyan and Associates, April <strong>2010</strong>.<br />
Adjusted for inflation using the US Bureau of Labor Statistics<br />
Consumer Price Index.<br />
<strong>Tourism</strong> Industry Earnings per<br />
Employee Real Growth Rates,<br />
2004 - 2008<br />
3.5%<br />
3.0%<br />
2.5%<br />
2.0%<br />
1.5%<br />
1.0%<br />
0.5%<br />
0.0%<br />
-0.5%<br />
-1.0%<br />
-1.5%<br />
-2.0%<br />
-2.5%<br />
2004<br />
California<br />
2005<br />
Napa<br />
2006<br />
2007<br />
<strong>Sonoma</strong><br />
3.4%<br />
-1.5%<br />
-1.8%<br />
-2.3%<br />
2008<br />
Santa Barbara<br />
www.sonomaedb.org 9<br />
2003<br />
2004<br />
2005<br />
2006<br />
2007<br />
2008<br />
2003<br />
2004<br />
2005<br />
2006<br />
2007<br />
2008
Lodging & Hospitality Assessment<br />
Occupancy Rate, ADR, RevPar & Growth<br />
<strong>Sonoma</strong> <strong>County</strong>’s occupancy rates stayed relatively stable<br />
amid expansion in the county’s room offerings through 2007.<br />
During 2008-2009, however, average occupancy dropped as the<br />
recession decreased discretionary consumer spending.<br />
Average daily rate (ADR) continued to decrease from the record set<br />
in 2007 of $130.60 when adjusted for inflation, seeing a real<br />
decrease of 10.6% from 2008. When compared after adjustment for<br />
inflation, revenue per available room (RevPar) for <strong>Sonoma</strong> <strong>County</strong><br />
also fell from an average of $76.80 in 2008 to $63.00 in 2009.<br />
Revenue per available room saw a greater decrease than ADR,<br />
-17.9% compared to -10.6% respectively. This indicates that lower<br />
average daily rates have not been offset by increases in occupancy<br />
needed to maintain previous standards of revenue per room.<br />
As page 8 illustrates, visitors staying in hotels and motels are the<br />
single largest source of destination spending in <strong>Sonoma</strong> <strong>County</strong>,<br />
with an estimated $613.5 million in 2008. Day travelers, as well as<br />
those staying in B&Bs and private or vacation homes contribute the<br />
majority of the remaining visitor spending.<br />
<strong>Annual</strong> Lodging Occupancy Rates,<br />
<strong>Sonoma</strong> <strong>County</strong>, 2004-2009<br />
70%<br />
66%<br />
62%<br />
58%<br />
54%<br />
50%<br />
2004 2005 2006 2007 2008 2009<br />
56.1%<br />
<strong>Annual</strong> Average Daily Rate (ADR), <br />
<strong>Sonoma</strong> <strong>County</strong> (<strong>2010</strong> $)<br />
$130<br />
$124<br />
Revenue Per Available Room<br />
(RevPar) and <strong>Annual</strong> Average Daily Rate<br />
Real Growth Rate,<br />
<strong>Sonoma</strong> <strong>County</strong>, 2004-2009<br />
15%<br />
10%<br />
5%<br />
$118<br />
$112<br />
$106<br />
$100<br />
2004 2005 2006 2007 2008 2009<br />
$112.30<br />
0%<br />
-5%<br />
-10%<br />
-10.6%<br />
Revenue Per Available Room<br />
(RevPar), <strong>Sonoma</strong> <strong>County</strong> (<strong>2010</strong> $)<br />
$90<br />
-15%<br />
-20%<br />
2004<br />
2005<br />
2006<br />
ADR<br />
2007<br />
RevPar<br />
2008<br />
2009<br />
-17.9%<br />
$72<br />
$54<br />
$63<br />
$36<br />
Source, all data: Smith Travel Research, 2009.<br />
Adjusted for inflation using the US Bureau of Labor Statistics<br />
Consumer Price Index<br />
10 www.sonomaedb.org<br />
$18<br />
$0<br />
2004 2005 2006 2007 2008 2009
<strong>Tourism</strong> Generated Taxes<br />
TOT Revenue Updates & Spending<br />
Transient Occupancy Tax (TOT) is a local tax on room<br />
rental revenue in lodging properties located in <strong>Sonoma</strong> <strong>County</strong>.<br />
TOT revenues in <strong>Sonoma</strong> <strong>County</strong> decreased 12.68% to $18.02 million<br />
in 2009 when adjusted for inflation. Beginning in Quarter 2 of 2008,<br />
cities and the unincorporated areas began experiencing stagnant and<br />
decreased year-over growth as the recession began to negatively<br />
affect visitor traffic and spending nationwide.<br />
Revenues from TOT are divided between the <strong>County</strong> of <strong>Sonoma</strong><br />
(which receives revenue from lodging properties in unincorporated<br />
regions) and the individual cities in the county. Collectively, the<br />
incorporated cities generated 60% of all revenue in 2009, while the<br />
county generated 40%. This distribution has shifted slowly over time;<br />
in 1997, cities received 54% of all TOT revenue.<br />
Spending by day travelers and overnight visitors to <strong>Sonoma</strong> <strong>County</strong><br />
ments, including sales tax and transient occupancy tax. Total local<br />
taxes collected, including TOT, from visitors to <strong>Sonoma</strong> <strong>County</strong> in<br />
2008 were estimated at $29.1 million, after adjusting for inflation.<br />
This represents a 1.32% decrease from 2007 ($29.5 million). In 2008<br />
the state collected $52.8 million, after adjusting for inflation from<br />
<strong>Sonoma</strong> <strong>County</strong> visitors, a 1.44% decrease from 2007 ($53.5<br />
million).<br />
Percentage of <strong>Annual</strong> TOT<br />
Revenue By City, 2009<br />
<strong>Sonoma</strong> <strong>County</strong> (unincorporated<br />
and cities) <strong>Annual</strong> TOT, 2001-2009<br />
(Millions of <strong>2010</strong> $)<br />
$22<br />
$20<br />
$18<br />
$16<br />
$14<br />
$12<br />
$10<br />
2001 2002 2003 2004 2005 2006 2007 2008 2009<br />
Source: Transient Occupancy Tax <strong>Report</strong>: Q4 2009, <strong>Sonoma</strong> <strong>County</strong> Economic Development Board.<br />
Adjusted for inflation using the US Bureau of Labor Statistics Consumer Price Index.<br />
Unincorporated <strong>Sonoma</strong> <strong>County</strong><br />
TOT Revenue Spending Areas,<br />
Fiscal Year, 2009-<strong>2010</strong><br />
<strong>Tourism</strong><br />
(18%)<br />
Transfer to<br />
General Fund<br />
(22%)<br />
Regional<br />
Parks Maint.<br />
(28%)<br />
Sebastopol<br />
<strong>Sonoma</strong><br />
Windsor<br />
Agriculture<br />
(2%)<br />
Collection &<br />
Admin. (3%)<br />
Arts/Culture/<br />
Historical Orgs.<br />
(5%)<br />
Unincorporated<br />
Affordable<br />
Housing (7%)<br />
Economic<br />
Development (15%)<br />
Santa Rosa<br />
Rohnert Park<br />
Unincorporated<br />
(39.55%)<br />
Petaluma<br />
(6.70%)<br />
Sebastopol<br />
(1.26%)<br />
Petaluma<br />
Cloverdale<br />
(0.83%)<br />
Rohnert Park<br />
(8.99%)<br />
<strong>Sonoma</strong><br />
(11.16%)<br />
Healdsburg<br />
Healdsburg<br />
(8.63%)<br />
Santa Rosa<br />
(17.06%)<br />
Windsor<br />
(5.82%)<br />
Source: Transient Occupancy Tax <strong>Report</strong>: Q4 2009, <strong>Sonoma</strong> <strong>County</strong> Economic Development Board<br />
Cloverdale<br />
Source: <strong>Sonoma</strong> <strong>County</strong> Budget 2009-<strong>2010</strong> fiscal year.<br />
80<br />
70<br />
60<br />
50<br />
40<br />
30<br />
20<br />
10<br />
0<br />
Tax Receipts Generated by Travel<br />
Spending, 2002-2008<br />
(Millions of <strong>2010</strong> $)<br />
2002<br />
2003<br />
2004<br />
2005<br />
2006<br />
2007<br />
$52.75<br />
$29.09<br />
2008<br />
Source: California Travel Impacts by <strong>County</strong>, 2009 Preliminary State Estimates. Prepared for the<br />
California Travel & <strong>Tourism</strong> Commission by Dean Runyan and Associates, April <strong>2010</strong>. Adjusted for<br />
inflation using the US Bureau of Labor Statistics Consumer Price Index.<br />
www.sonomaedb.org 11<br />
State<br />
Local
<strong>2010</strong> <strong>Tourism</strong> Industry Survey: results Summary<br />
<strong>2010</strong> <strong>Tourism</strong> Industry Survey:<br />
Results Summary<br />
The <strong>2010</strong> <strong>Tourism</strong> Industry Survey is an annual survey of <strong>Sonoma</strong> <strong>County</strong> tourism businesses<br />
updated by the <strong>Sonoma</strong> <strong>County</strong> Economic Development Board (EDB). 193 respondents<br />
representing local wineries, restaurants, lodging establishments, tours & transportation,<br />
spa & wellness services, and tourism-related businesses responded to questions<br />
regarding economic outlook, visitor and business demographics, and marketing strategies.<br />
Key Findings include:<br />
Businesses have a relatively positive outlook for the coming year, and they believe<br />
international visitation has fared better than domestic visitation over the past year.<br />
The vast majority of respondents considered exploring new programs for health and<br />
wellness tourism and other niche markets as useful. Eco-tourism, cycling, and LGBT<br />
(lesbian, gay, bisexual, transgendered) were markets rated as <strong>Sonoma</strong> <strong>County</strong>’s top<br />
opportunities.<br />
Most respondents believe <strong>Sonoma</strong> <strong>County</strong> has high potential to attract visitors<br />
overall, and that scenery is its greatest asset besides wine reputation/culture.<br />
Respondents feel local government can make a positive difference in the tourism<br />
industry by assisting with licensing and permits and providing workforce education<br />
and training. Local promotion agencies can best promote respondent businesses<br />
through marketing, PR and media visits, and tourist and industry trend reports.<br />
12<br />
www.sonomaedb.org
<strong>Tourism</strong> Industry Survey<br />
Survey Response Demographics<br />
Owners and executives of roughly 200 diverse tourism<br />
businesses responded to the EDB’s <strong>2010</strong> <strong>Tourism</strong> Industry Survey.<br />
The following table indicates the percentage breakdown of the<br />
tourism industry businesses responding to the survey. Lodging and<br />
winery were the most common primary operations of responding<br />
businesses at 50.7% and 22.8% respectively. Respondents also<br />
noted other primary operations in restaurant (21.3%), spa/wellness<br />
(5.9%), tour/transport (5.1%) and recreational service<br />
provider/outfitter (4.4%), and other (24.3%) related businesses such<br />
as event facilities and catering businesses among others. The<br />
surveyed businesses reflect the diverse strength of <strong>Sonoma</strong><br />
<strong>County</strong>’s tourism industry.<br />
Lodging Classifications:<br />
Full-Service Lodging<br />
Offering a full range of on-premises food and beverage service,<br />
cocktail lounge, entertainment, conference facilities, shops and<br />
recreational activities. Wide range of services provided by<br />
uniformed staff on duty 24 hours.<br />
Vacation Rentals<br />
These properties are fully furnished condominiums, townhomes or<br />
single-family homes - featuring amenities such as games, beach<br />
equipment, DVD libraries, and a stocked kitchen - rented on a<br />
temporary basis to tourists as an alternative to a hotel.<br />
Bed & Breakfast<br />
Smaller establishments emphasizing a more personal relationship<br />
between operators and guests. Guest units tend to be individually<br />
decorated. Rooms may not include some modern amenities and<br />
may have a shared bathroom. Usually owner-operated, with a<br />
common room, separate from the innkeeper's living quarters, where<br />
guests and operators can interact during evening and breakfast<br />
hours. A continental or full, hot breakfast is served and is included in<br />
the room rate.<br />
Limited-Service Lodging<br />
Only the basic services and facilities are available. Self-service<br />
aspects are predominant. Commonly, a continental breakfast may<br />
be offered rather than having a restaurant on premises.<br />
Campground<br />
A place used for overnight stay in the outdoors, where an individual,<br />
family, or group may camp. Consists of open pieces of ground<br />
where a camper can pitch a tent or park an RV. Some campsites<br />
have amenities including fire pits, picnic tables, utility hookups,<br />
shower facilities, and more.<br />
Source: AAA, www.aaa.com<br />
Primary Operations* of<br />
Responding tourism Industry<br />
Businesses, <strong>2010</strong><br />
Restaurant 21.3%<br />
Winery 22.8%<br />
Tour/Transport 5.1%<br />
Spa/Wellness 5.9%<br />
Lodging 50.7%<br />
Recreational Service 4.4%<br />
Provider/Outfitter<br />
Other<br />
24.3%<br />
*Respondents were asked to select all primary operations. Therefore,<br />
percentages will not add up to one hundred.<br />
Demographic Profile of<br />
Responding Lodging Properties,<br />
(Respondent-Based) <strong>2010</strong><br />
Campground<br />
Vacation<br />
Rentals<br />
Full-Service Lodging (20.3%)<br />
Vacation Rentals (23.2%)<br />
Bed & Breakfast (26.1%)<br />
B&B<br />
Limited-Service<br />
Full-Service<br />
Limited-Service Lodging<br />
(24.6%)<br />
Campground (5.8%)<br />
Source, all data: <strong>Tourism</strong> Industry Survey <strong>2010</strong>, <strong>Sonoma</strong> <strong>County</strong> Economic<br />
Development Board<br />
www.sonomaedb.org 13
<strong>Tourism</strong> Industry Survey<br />
Survey Response Demographics cont’d<br />
Survey respondents represented businesses from all over<br />
<strong>Sonoma</strong> <strong>County</strong>, with the largest proportion of responses coming<br />
from the hubs of Santa Rosa, Healdsburg, <strong>Sonoma</strong>, and Sebastopol<br />
with 21.5%, 10.5%, 8.7%, and 7.6% respectively. Almost half of these<br />
organizations (43.8%) have been in business for 20 years or more,<br />
though more than 20% have opened within the past five years.<br />
A vast majority of respondent businesses employ 24 or fewer<br />
employees (76.5%). Though the average percentage of part-time<br />
employees reported was approximately 50%, there was significant<br />
variance in the reported part-to-full time mix, reflecting the diverse<br />
employment needs of different industries within the tourism sector.<br />
89% of respondents describe their businesses as independently<br />
owned within <strong>Sonoma</strong> <strong>County</strong>. Of those not independently owned,<br />
only 7% claim to be part of a franchise<br />
From responses given, local tourism industry businesses may be<br />
described as independent, long-established, and relatively small<br />
businesses. The overall number of tourism industry employees<br />
increased slighty over 2008 in <strong>Sonoma</strong> <strong>County</strong>. Outside of the<br />
proportionally few large tourism industry employers, growth should<br />
be seen in expansion of current businesses and increase in new<br />
tourism-related businesses throughout the county.<br />
Number of Years in Business<br />
in <strong>Sonoma</strong> <strong>County</strong>, <strong>2010</strong><br />
20 or More Years<br />
0-5 Years (22.6%)<br />
6-10 Years (16.8%)<br />
11-20 Years<br />
0-5 Years<br />
6-10 Years<br />
11-20 Years (16.8%)<br />
20 or More Years (43.8%)<br />
Source, all data: <strong>Tourism</strong> Industry Survey <strong>2010</strong>, <strong>Sonoma</strong> <strong>County</strong><br />
Economic Development Board<br />
Top <strong>Sonoma</strong> <strong>County</strong> Respondent<br />
Business Locations, <strong>2010</strong>*<br />
Number of Employees, <strong>2010</strong><br />
25-49<br />
50-99<br />
100<br />
249<br />
+250<br />
24 or Fewer<br />
40%<br />
35%<br />
30%<br />
25%<br />
20%<br />
15%<br />
10%<br />
5%<br />
24 or Fewer (76.5%)<br />
25-49 (8.1%)<br />
100-249 (4.4%)<br />
250 or More (1.5%)<br />
0%<br />
Santa Rosa<br />
Healdsburg<br />
<strong>Sonoma</strong><br />
Windsor<br />
Geyserville<br />
Guerneville<br />
Bodega Bay<br />
Cloverdale<br />
Glen Ellen<br />
50-99 (9.6%) * Other locations include: Forestville, Kenwood, Occidental, The Sea Ranch,<br />
Jenner,<br />
Cotati, Gualala, Rohnert Park, Cazadero, Duncans Mills, Freestone, Fulton,<br />
Graton,<br />
Monte Rio, and Valley Ford.<br />
14 www.sonomaedb.org
<strong>Tourism</strong> Industry Survey<br />
Visitor Origins & Traveler Type<br />
Each year <strong>Sonoma</strong> <strong>County</strong> hosts more than seven million<br />
visitors. These visitors are a catalyst for local economic vitality,<br />
contributing more than $1.3 billion in 2008 to the area’s economy.<br />
<strong>Sonoma</strong> <strong>County</strong>’s award-winning wineries, spa experiences, and<br />
miles of scenic Pacific Ocean coastline draw both domestic and<br />
international visitors.<br />
According to survey respondents, <strong>Sonoma</strong> <strong>County</strong>’s main visitor<br />
origins are domestic, with the majority coming from “Other U.S.A.”<br />
(not including California) (22.4%), “Other California” (California cities<br />
not listed) (22.0%), and San Francisco (17.41%). When asked about<br />
international visitation, respondents consistently list Europe,<br />
Canada, and the United Kingdom as the top three areas of origin.<br />
100%<br />
80%<br />
60%<br />
40%<br />
20%<br />
<strong>Sonoma</strong> <strong>County</strong> International<br />
Visitor Origins<br />
(Respondent-Based), <strong>2010</strong><br />
86.7%<br />
74.1%<br />
64.3%<br />
73.4%<br />
Further, respondents were asked to estimate their percentage<br />
breakdown of business, leisure, and group travelers. Leisure travel<br />
led the way with an average reported proportion of 71.1% of<br />
visitors. Group and business travel were reported at similar averages<br />
of 7.0% and 8.5% respectively. Meeting attendees comprised<br />
3.3% of <strong>Sonoma</strong> <strong>County</strong> visitors. Another 10.1% were reported as<br />
‘other,’ likely reflecting a lack of consistency and clarification in the<br />
traveler-type classifications among different tourism businesses.<br />
52.3% of respondents described the majority of their guests as<br />
repeat visitors.<br />
Please note that no data from the industry survey is weighted in the<br />
analysis presented here. All data in this section is based on tourism<br />
industry owner/executives reporting on their own market demographics.<br />
<strong>Sonoma</strong> <strong>County</strong> Visitor origins,<br />
(Respondent-Based), <strong>2010</strong><br />
25%<br />
20%<br />
15%<br />
10%<br />
5%<br />
0%<br />
22.4%<br />
22.0%<br />
17.4%<br />
U.S.A. (Not CA)<br />
Other (California)<br />
San Francisco<br />
East Bay<br />
Sacramento<br />
Marin <strong>County</strong><br />
Los Angeles Region<br />
Silicon Valley<br />
International<br />
San Diego<br />
Seattle<br />
Portland<br />
Las Vegas<br />
*Percentage indicates how often marked as one of top three visitor origins.<br />
Source: <strong>Tourism</strong> Industry Survey <strong>2010</strong>, <strong>Sonoma</strong> <strong>County</strong> Economic Development Board<br />
0%<br />
Europe<br />
Canada<br />
United Kingdom<br />
Australia/New Zealand<br />
Japan<br />
Mexico<br />
China<br />
Other<br />
Other Asia<br />
India<br />
Other Latin America<br />
*Percentage indicates how often marked as one of top three visitor origins.<br />
Source: <strong>Tourism</strong> Sector Survey <strong>2010</strong>, <strong>Sonoma</strong> <strong>County</strong> Economic<br />
Development Board<br />
Travel Industry Association Top<br />
Ten International Arrivals, 2009<br />
CANADA, -5% FRANCE, -3%<br />
MEXICO, -4% BRAZIL, +16%<br />
UK, -15%<br />
ITALY, -3%<br />
JAPAN, -10% S KOREA, -2%<br />
GERMANY, -5% AUSTRALIA, 5%<br />
Source: International Visitation to the United States: A Statistical Summary of U.S. Arrivals (2009)<br />
International Trade Administration Office of Travel and <strong>Tourism</strong> Industries. http://tinet.ita.doc.gov<br />
<strong>Sonoma</strong> <strong>County</strong> Traveler Type<br />
(Respondent-Based), <strong>2010</strong><br />
Meeting<br />
Group<br />
Business<br />
Other<br />
Leisure<br />
Leisure Travelers - 68.56% Group Travel - 17.40%<br />
Business Travelers - 17.32% Meeting Attendee - 3.30%<br />
Other - 15.65%<br />
Source: <strong>Tourism</strong> Sector Survey <strong>2010</strong>, <strong>Sonoma</strong> <strong>County</strong> Economic Development Board<br />
www.sonomaedb.org 15
<strong>Tourism</strong> Industry Survey<br />
Expansion, Industry Confidence/Outlook & Green Practices<br />
<strong>Tourism</strong> business operations expanded in <strong>Sonoma</strong><br />
<strong>County</strong> despite the economic downturn, with 19.6% of respondents<br />
citing an expansion in operations in 2009. Optimism for the next 12<br />
months has increased significantly in comparison to last year, when<br />
approximately 44% of responding establishments had a “somewhat<br />
confident” or confident outlook for their operations in 2009. This<br />
year, 69.8% feel “somewhat optimistic” or optimistic, while the<br />
numbers of those neutral (12.2%) decreased. While tourism industry<br />
confidence seems to be on the incline, many businesses chose<br />
not to expand operations due to the adverse effects of the weak<br />
economy over the past year.<br />
Industry leaders do not believe the comparative value of the dollar<br />
has resulted in an overall increase in visitation and spending in<br />
2009. The majority of respondents feel that domestic visitation,<br />
international visitation, and visitor spending has decreased at 45%,<br />
42%, and 62% respectively. For much of 2009, international arrivals<br />
were decreasing due to the global recession. Several European<br />
nations cut back on travel to the United States over 2009 (See page<br />
15). However, Brazil’s economic growth supported a 16% increase in<br />
travel to the United States, as visitors from Australia had a year-over<br />
increase of 5%.<br />
In reaction to “greening” trends, the majority of respondents report<br />
implementing new environmental practices in regard to water<br />
conservation (71%), energy conservation (74%), waste reduction<br />
(74%), and other issues (29%). Of those reporting new eco-friendly<br />
practices, about half have successfully cut costs, while the other half<br />
are unsure or do not believe these recently implemented practices<br />
are saving their business money. Almost all customers made aware<br />
of improved environmental practices reacted positively, though<br />
51.6% of respondents feel that customers remain unaware of the<br />
changes.<br />
Results of Implementation of<br />
Environmental Practices<br />
(Respondent-Based), <strong>2010</strong><br />
Percentage of Respondents That<br />
Expanded Operations Over The Last<br />
12 Months<br />
No<br />
N/A<br />
Yes<br />
Yes (19.6%) No (77.5%) N/A (2.9%)<br />
Effect of the Comparative Value<br />
of the Dollar on <strong>Tourism</strong><br />
Businesses in 2009<br />
(Respondent-Based), <strong>2010</strong><br />
Increase Decrease No Effect<br />
Domestic<br />
Visitation 22% 45% 34%<br />
International<br />
Visitation 21% 42% 37%<br />
Visitor<br />
Spending 13% 62% 25%<br />
<strong>Sonoma</strong> <strong>County</strong> <strong>Tourism</strong> Industry<br />
Outlook For The Next 12 Months<br />
(Respondent-Based), <strong>2010</strong><br />
Somewhat <br />
Concerned<br />
Concerned<br />
Customer Reaction Successfully Cut Costs<br />
60% 50<br />
50%<br />
40%<br />
47.9%<br />
51.6%<br />
48.4%<br />
40<br />
30<br />
Neutral<br />
Optimistic<br />
Somewhat<br />
Optimistic<br />
30%<br />
20%<br />
10%<br />
26.4% 25.6%<br />
0.0%<br />
0% 0<br />
Positive Negative Unaware Yes No Don’t Know<br />
Source, all data: <strong>Tourism</strong> Industry Survey <strong>2010</strong>, <strong>Sonoma</strong> <strong>County</strong> Economic Development Board<br />
20<br />
10<br />
Optimistic (18.0%)<br />
Somewhat<br />
Optimistic (51.8%)<br />
Neutral (12.2%)<br />
Somewhat<br />
Concerned (10.8%)<br />
Concerned (7.2%)<br />
16<br />
www.sonomaedb.org
<strong>Tourism</strong> Industry Survey<br />
Local Government Assistance, Promotional Assistance & Marketing<br />
<strong>Sonoma</strong> <strong>County</strong>’s tourism industry is a diversified market<br />
of service-oriented businesses and segmented customer markets.<br />
This diversification results in a wide range of marketing channels<br />
employed by businesses to reach out to customers.<br />
Reflecting the increase in the provision of travel-related information<br />
and popularity of user-generated and interactive marketing online,<br />
respondents identified the Internet as the most widely used marketing<br />
channel, used by 89.9% of respondent businesses. Membership<br />
organizations, regional publications, direct mail, and local newspapers<br />
are also frequently used marketing avenues.<br />
Local government assistance in licensing/permits and<br />
education/training are the most desired government assistance,<br />
with 59% and 38.8% of respondents‘ selections respectively. A<br />
significant amount of industry representatives provided `other’<br />
suggestions, including special event assistance, destination marketing,<br />
economic development, and business relocation/recruitment.<br />
More than 90% of respondents suggested local promotional agencies<br />
focus their efforts on marketing, with 76% citing PR/Media visits<br />
as an area where local promotion agencies could help the tourism<br />
industry. 46.6% of respondents find tourist and industry trend<br />
reports useful.<br />
Respondent businesses reported spending proportionally less<br />
revenue on marketing than in 2009, but still more than in 2008.<br />
Roughly 80% of respondents spend 0-5% or 5-10% of gross<br />
revenues on marketing.<br />
Percentage of Gross Revenue<br />
Spent on Marketing,<br />
2008 - <strong>2010</strong><br />
Percentage of Respondents<br />
50%<br />
40%<br />
30%<br />
20%<br />
10%<br />
0%<br />
0-5%<br />
40.1%<br />
40.8%<br />
5-10%<br />
16.2%<br />
10-25%<br />
25+<br />
Source: <strong>Tourism</strong> Industry Survey <strong>2010</strong>, 2009, & 2008 <strong>Sonoma</strong> <strong>County</strong> Economic Development Board<br />
2008<br />
2009<br />
<strong>2010</strong><br />
2.8%<br />
Licensing/Permits<br />
Education/Training<br />
Other<br />
Crime Prevention<br />
Workforce Sourcing<br />
CPR/First Aid Training<br />
Marketing<br />
PR/Media Visits<br />
Tourist/Industry<br />
Trend <strong>Report</strong>s<br />
Educational<br />
Industry Events<br />
Customer Service<br />
Percentage of Respondents<br />
Desired Focus for Local<br />
Government Assistance, <strong>2010</strong><br />
Other<br />
16.4%<br />
26.9%<br />
26.1%<br />
32.1%<br />
38.8%<br />
0% 10% 20% 30% 40% 50% 60%<br />
Focus for Local Promotion<br />
Agency Assistance, <strong>2010</strong><br />
18.5%<br />
6.8%<br />
30.1%<br />
46.6%<br />
76.0%<br />
91.1%<br />
59.0%<br />
*Percentage indicates how often marked as one of top three desired focus for local government<br />
assistance.<br />
Source: <strong>Tourism</strong> Industry Survey <strong>2010</strong>, <strong>Sonoma</strong> <strong>County</strong> Economic Development Board<br />
0% 20% 40% 60% 80% 100%<br />
Source: <strong>Tourism</strong> Industry Survey <strong>2010</strong>, <strong>Sonoma</strong> <strong>County</strong> Economic Development Board<br />
Marketing Channels Utilized by<br />
<strong>Tourism</strong> Businesses, <strong>2010</strong><br />
100%<br />
80%<br />
60%<br />
40%<br />
20%<br />
0%<br />
89.9%<br />
57.0%<br />
Internet<br />
Membership Orgs.<br />
48.3%<br />
Source: <strong>Tourism</strong> Industry Survey <strong>2010</strong>, <strong>Sonoma</strong> <strong>County</strong><br />
Economic Development Board<br />
Regional Publications<br />
Direct Mail<br />
Local Newspaper<br />
Trade show<br />
Radio<br />
Other<br />
National Magazine<br />
Television<br />
www.sonomaedb.org 17
<strong>Tourism</strong> Industry Survey<br />
Attractions, Potential & Market Opportunities<br />
Despite the current uncertain economic outlook, 84.7% of<br />
industry representatives still believe <strong>Sonoma</strong> <strong>County</strong> has high<br />
potential for attracting tourists and encouraging repeat visits. None<br />
of the respondents feel <strong>Sonoma</strong> <strong>County</strong> has poor potential for<br />
attracting visitors. Respondents attribute the high potential for<br />
visitor attraction to numerous factors including: the diversity in<br />
attractions and activities; national recognition of <strong>Sonoma</strong> <strong>County</strong> as<br />
a premier wine destination; effective marketing of the region, and<br />
reputation as an approachable and affordable getaway.<br />
Other than wine, respondents recognize <strong>Sonoma</strong> <strong>County</strong>’s most<br />
attractive assets as scenery (39.2%) and outdoor recreation (23.1%).<br />
Correspondingly, eco-tourism is ranked as the emerging market<br />
with greatest opportunity, chosen as one of three selections by<br />
51.1% of respondents. Other markets recognized for high potential<br />
include cycling (46%) and LGBT (33.1%).<br />
Most Attractive Asset Other<br />
Than Wine in <strong>Sonoma</strong> <strong>County</strong><br />
(Respondent-Based), <strong>2010</strong><br />
Spa/Wellness<br />
LGBT<br />
Friendly<br />
Agriculture<br />
Culinary<br />
Offerings<br />
Other<br />
Outdoor<br />
Recreation<br />
Scenery<br />
Outdoor Recreation (23.1%) Spa/Wellness (4.2%)<br />
<strong>Sonoma</strong> <strong>County</strong>’s Potential<br />
for Attracting Visitors<br />
(Respondent-Based), <strong>2010</strong><br />
Scenery (39.2%)<br />
Agriculture (2.1%)<br />
Culinary Offerings (18.2%)<br />
LGBT Friendly (2.1%)<br />
Other (11.1%)<br />
Medium<br />
Potential<br />
Low Potential<br />
Source, all data: <strong>Tourism</strong> Industry Survey <strong>2010</strong>, <strong>Sonoma</strong> <strong>County</strong> Economic<br />
Development Board<br />
High Potential<br />
Niche Market Opportunities for<br />
<strong>Sonoma</strong> <strong>County</strong><br />
(Respondent-Based), <strong>2010</strong><br />
60%<br />
High Potential (84.7%)<br />
Low Potential (0.7%)<br />
Medium Potential (14.6%)<br />
Poor Potential (0%)<br />
Why...<br />
Diversity in attractions and activities<br />
Proximity to Bay Area<br />
Approachable & more affordable than competition<br />
Effective marketing by local agencies<br />
Percentage of Respondents<br />
50%<br />
40%<br />
30%<br />
20%<br />
10%<br />
51.1%<br />
46.0%<br />
33.1%<br />
44.8%<br />
13.4%<br />
11.9%<br />
Climate and scenery<br />
National recognition as a premier wine destination<br />
0%<br />
Eco-<strong>Tourism</strong><br />
Cycling<br />
LGBT<br />
International<br />
Spa <strong>Tourism</strong><br />
Art/Culture<br />
Hiking<br />
Multi-Generational/Family<br />
Water Activities/Recreation<br />
Other<br />
Golf<br />
Hispanic/ Minority<br />
18 www.sonomaedb.org
<strong>Tourism</strong> Industry<br />
Market Opportunities, Potential New Programs & Suggestions<br />
Industry respondents cited many new opportunities for<br />
expansion of <strong>Sonoma</strong> <strong>County</strong>’s tourism assets. More than 75% of<br />
respondents believe new county-wide programs targeted to niche<br />
markets would be useful or very useful. Only 1.4% of respondents<br />
felt new programs to be useless or very useless.<br />
The development of innovative health and wellness programs can<br />
be an effective way of increasing visitors’ length of stay, encouraging<br />
return visits, and differentiating <strong>Sonoma</strong> <strong>County</strong>. Health and<br />
wellness tourism is an international trend set by health-conscious<br />
consumers seeking to enhance their well-being through travel<br />
experiences. Activities that fit under the scope of health and<br />
wellness tourism include spa treatment, travel to scenic landscapes,<br />
and yoga. 65.8% of respondents feel new health and wellness<br />
programs would be somewhat useful, useful, or very useful, with<br />
only 6.3% indicating these programs as useless or very useless.<br />
A vast majority of respondents find both regional and countywide<br />
marketing initiatives to be very useful, useful, or somewhat useful.<br />
Of the two, county-wide efforts are seen as more successful, with<br />
43.5% of respondents finding the initiatives useful or very useful,<br />
compared with 34.8% for regional marketing initiatives. Many<br />
respondents are satisfied with the performance of local agencies<br />
When asked for suggestions on how to improve regional and<br />
county-wide marketing, respondents offered an array of ideas.<br />
Numerous industry representatives believe marketing non-wine<br />
related activities, promoting regional differences, and providing<br />
local education on current efforts would be beneficial to the tourism<br />
industry.<br />
New Niche Market Program<br />
Usefulness<br />
(Respondent-Based), <strong>2010</strong><br />
Useless<br />
Neutral<br />
Very Useless<br />
New Health & Wellness Program<br />
Usefulness (Respondent-Based), <strong>2010</strong><br />
nts<br />
Percentage of Responde<br />
40%<br />
35%<br />
30%<br />
25%<br />
20%<br />
15%<br />
10%<br />
30%<br />
25%<br />
20%<br />
15%<br />
10%<br />
5%<br />
0%<br />
5%<br />
0%<br />
6.4 %<br />
4.3 %<br />
16.1% 45.5 %<br />
Very Useful<br />
y Useful<br />
23.1%<br />
Useful<br />
Useful<br />
%<br />
26.6<br />
Somewhat<br />
Useful<br />
24.5%<br />
Somewhat<br />
Useful<br />
Neutral<br />
3.5%<br />
Neutral<br />
Somewhat<br />
Useless<br />
Useless<br />
3.6%<br />
5.0%<br />
2.8%<br />
3.5%<br />
Very Useless<br />
Effectiveness of Marketing<br />
Initiatives<br />
(Respondent-Based), <strong>2010</strong><br />
Ver<br />
37.1%<br />
30.5%<br />
30.0%<br />
31.9%<br />
20.7%<br />
24.1%<br />
0.0%<br />
2.8%<br />
Ver<br />
Somewhat<br />
Useless<br />
Useless<br />
2.1%<br />
1.4%<br />
y Useless<br />
Somewhat<br />
Useful<br />
Useful<br />
Very Useful<br />
<strong>County</strong>-wide<br />
Regional<br />
Respondent Suggestions for<br />
Improved Marketing, <strong>2010</strong><br />
Market non-wine activities (e.g. family-friendly, etc.)<br />
Very Useful (35.3%)<br />
Useful (40.3%)<br />
Somewhat Useful (15.8%)<br />
Neutral (7.2%)<br />
Useless (0.7%)<br />
Very Useless (0.7%)<br />
Promote the diversity of the county and its regional<br />
differences<br />
Highlight the county’s green tourism industry<br />
Inform locals and businesses about ongoing efforts<br />
*0% of respondents selected ‘Somewhat Useless’.<br />
Source, all data: <strong>Tourism</strong> industry Survey <strong>2010</strong>, <strong>Sonoma</strong> <strong>County</strong> Economic<br />
Development Board<br />
Purchase ad space in targeted publications (e.g. AAA,<br />
Sunset, etc.)<br />
www.sonomaedb.org 19
Methodology<br />
The <strong>Sonoma</strong> <strong>County</strong> Economic Development Board (EDB) recently updated its <strong>2010</strong> survey of <strong>Sonoma</strong> <strong>County</strong><br />
tourism businesses in relation to the tourism industry. Owners and executives of roughly 200 tourism businesses<br />
rated their confidence in the industry and identified changes and needs they expect at their businesses in the<br />
near future. The responses covered businesses in a broad range of tourism establishments. The survey asked<br />
tourism-centered businesses to respond to a broad array of questions about their market and marketing efforts,<br />
their visitor demographics, their expansion plans, the demographics of the industry, and their opinion on key<br />
county tourism policies. This report represents the findings from that survey as well as an analysis of those<br />
responses.<br />
In addition to the survey responses, the <strong>Sonoma</strong> <strong>County</strong> <strong>2010</strong> <strong>Annual</strong> <strong>Tourism</strong> <strong>Report</strong> also includes general<br />
background information for the tourism industry on a regional and national level. Statistics presented represent<br />
the most recently published data from the Travel Industry Association (TIA), www.tia.org, Smith Travel Research,<br />
and the California Travel and <strong>Tourism</strong> Commission’s 2009 California Travel Impacts by <strong>County</strong>, prepared by Dean<br />
Runyan & Associates and updated April <strong>2010</strong>, www.visitcalifornia.com. The EDB used the U.S. Bureau of Labor<br />
Statistics’ Consumer Price Index to adjust some data for inflation, http://www.bls.gov/. Lodging classifications<br />
were defined by AAA, www.AAA.com. The EDB collected and compiled all TOT data from each <strong>Sonoma</strong> <strong>County</strong><br />
jurisdiction.<br />
Please note that all survey data contained in this report is based on the information self-reported by respondents,<br />
which was not factually verified by the EDB. The responses were then gathered into a database for analysis. Due<br />
to the fact that survey respondents may provide no responses to some questions, the category percentages<br />
indicated in the graphs for those questions may not add up to 100%. Where replies are mutually exclusive,<br />
percentages may be slightly off due to rounding. Where replies are not mutually exclusive, percentages may total<br />
more than 100%. As mentioned above, it was our intention to obtain averages that provide a general “snapshot”<br />
of various issues for the hospitality/tourism industry in <strong>Sonoma</strong> <strong>County</strong>. Accordingly, the data averages are not<br />
weighted by any factor or interest.<br />
20<br />
Moody‘s Economy.com Section <br />
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Acknowledgements<br />
The <strong>2010</strong> <strong>Annual</strong> <strong>Tourism</strong> <strong>Report</strong> would not have been possible without the contributions of many<br />
individuals.<br />
Most of the credit for this study belongs to the local businesses that participated in the survey. Their<br />
responses created the foundation upon which the tourism sector could be studied and analyzed.<br />
Special acknowledgement is also due to Ken Fischang and Tim Zahner at the <strong>Sonoma</strong> <strong>County</strong> <strong>Tourism</strong><br />
Bureau for their invaluable suggestions and generous provision of statistical data on the tourism sector<br />
in <strong>Sonoma</strong> <strong>County</strong>.<br />
Finally, Justin Hayashi, <strong>Tourism</strong> Project Coordinator with the EDB, contributed a significant amount of<br />
time and effort to the report through surveying administration, compilation, and organization of the<br />
report, data, and survey findings. Justin Hayashi updated and consolidated the myriad data sources and<br />
statistics from previous years to create this comprehensive analysis, and deserves special thanks.<br />
Ben Stone<br />
Executive Director
EDB<br />
<strong>Sonoma</strong> <strong>County</strong><br />
Economic Development Board<br />
With Acknowledgment and Appreciation to Local Key Businesses<br />
Supporting <strong>Sonoma</strong> <strong>County</strong> Economic Development:<br />
Director<br />
Executive<br />
Sponsor<br />
<strong>County</strong> of <strong>Sonoma</strong> General Services, Real Estate Division <strong>County</strong> of <strong>Sonoma</strong> Board of Supervisors<br />
<strong>Sonoma</strong> <strong>County</strong> Health Services <strong>Sonoma</strong> <strong>County</strong> Transportation & Public Works<br />
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