New tourist attractions in Los Angeles and Anaheim are posing a threat to the continued growth of San Diego’s tourism industry and its impact on the region’s overall economy, according to tourism officials speaking at the annual meeting of the San Diego Tourism Authority on May 4.
While San Diego’s tourism numbers have risen steadily over the past two years, tourism officials warned of threats on the horizon that could stymie the region’s ability to keep pace with competing visitor destinations such as Los Angeles and Anaheim.
In both cities, blockbuster attractions have recently opened or are under development. At Universal Studios in Los Angeles, the Wizarding World of Harry Potter debuted last month to tens of thousands of fans, while just down the way in Anaheim, the Disneyland Resort is moving forward with its colossal 14-acre Star Wars Land.
“The tourism landscape is more competitive than ever,” said Joe Terzi, president and CEO of the San Diego Tourism Authority. “These new attractions, combined with enormous tourism marketing budgets for nearby destinations and attractions, pose a threat to San Diego’s market share and our ability to grow San Diego’s second-largest traded economy.”
“The importance of tourism to our region’s economy and our prosperity cannot be overstated,” said Mark Cafferty, president and CEO of the San Diego Regional Economic Development Corporation, who spoke at the annual meeting. “And because tourism is highly competitive, we must continue to tell our story to attract visitors and businesses from across the globe.”
Tourism officials said two proposed ballot measures — the so-called Citizens plan and the Chargers stadium plan — threaten to reduce the amount of funding for tourism marketing while significantly increasing the hotel tax rate to fund a stadium. Leaders from the local tourism economy have long pushed for an expansion of the existing bayside convention center because current and potential clients have expressed their strong preference for a single contiguous facility to serve their needs.
To keep San Diego competitive, the SDTA in January launched a $10 million advertising campaign that targets several major U.S. cities as well as Canada and the United Kingdom. It includes television spots as well as print, digital and billboard advertising. In addition, the SDTA recently launched its latest installment of “Guides to the Good Stuff,” an online video series that spotlights San Diego’s exciting nightlife, internationally acclaimed craft breweries, diverse cross-border culinary scene and local food offerings at Petco Park.
“The tourism economy here employs one in every eight San Diegans and generates hundreds of millions of dollars in tax revenue,” said Terzi. “To keep San Diego competitive, we can’t afford to lose one dime of tourism marketing funds. Whether you’re selling cars, computers or visitor destinations, marketing and advertising are vital to your success and survival.”