Orange County’s tourism industry is expected to grow in 2006, though gains in spending and visitors are expected to be a touch slower than this year.
The county should see a 2% bump in visitors to 45.4 million next year and a strong 6% increase in visitor spending to $8.7 billion, according to San Diego-based CIC Research Inc. That compares to visitor growth of 2.5% expected this year and a spending gain of 6.5% to $7.7 billion.
The uptick comes on the strength of the Disneyland Resort’s 50th anniversary, healthy convention attendance, the rise of coastal resorts and a fall promotion by the Anaheim/Orange County Visitor & Convention Bureau.
Positive signs for growth in 2006 include a generally upbeat economic outlook and a recent drop in fuel prices,a key component for regional visitors who are key to OC’s tourist numbers.
“As long as gas is available, Americans will travel,” said Sandra Hughes, vice president of AAA Travel during a recent conference call.
Visitor spending nationally is expected to grow 4% next year, according to Washington, D.C.-based Travel Industry Association.
“We have a cautious consumer in an environment of rising prices,” said Suzanne Cook, senior vice president of research for the association.
OC hoteliers can expect more occupancy and room rate gains next year, though at a slower pace than in 2005.
Local occupancy is expected to grow a conservative 2.9% to 72.6% next year, with room rates rising $4 to $111 a night, according to Los Angeles-based PKF Consulting.
“We’re definitely looking at a slowdown in occupancy and rates,” said Bruce Baltin, senior vice president of PKF Consulting. “In many markets, we’re already at historical highs, so it’s tough to predict much growth.”
OC has about 55,000 hotel rooms, which will increase slightly next year with the addition of a 252-room Doubletree Guest Suites and a 150-room Courtyard by Marriott in Anaheim. Other hotels in the 2006 pipeline are a 110-room Hampton Inn & Suites in Cypress and a 149-room Residence Inn at Huntington Beach.
In Anaheim, GardenWalk is set to get under way next year.
The 20-acre GardenWalk entertainment and retail project has new owners who expect to break ground in spring. The first phase is set to include 440,000 square feet of retail space and a parking garage.
Anaheim’s Platinum Triangle is envisioned as its new downtown. The city has approved or received plans that include 266,000 square feet of restaurants, shops and other commercial space.
On the convention front, 2006 attendance is expected to hover around the 1.1 million mark for the fourth straight year.
“The economy looks to be going forward, Corporate America is spending money again and we’re booking a lot of short-term corporate meetings,” said Charles Ahlers, president of the Anaheim/Orange County Visitor & Convention Bureau.
The Disneyland Resort is working hard to sustain the attendance bump garnered this year from the launch of its 50th anniversary events. In January, Disney will unveil its newest attraction, Monsters Inc. at California Adventure.
Knott’s Berry Farm plans to add a Johnny Rockets at the county’s oldest theme park and a water ride called Pacific Spin at the adjacent Soak City in Buena Park.
The Anaheim/OC Visitor & Convention Bureau, which will celebrate its own 45th anniversary in 2006, plans to capitalize on the success of a 2005 fall promotion it launched with hotels.com called “50 Days of Fall.”
For air travelers, John Wayne Airport is set to begin an expansion that would add a third terminal with six passenger gates and a customs office that would open the airport to international flights.
County supervisors are expected to vote this week on a financial plan for the expansion.
Stumbling blocks that could burst the euphoric tourism bubble of 2005 include the possible spread of bird flu and higher fuel costs that drive up air and hotel rates.
_________________________________________________________
PERSON TO WATCH: HENRY SAMUELI
|
|
||
|
Samueli: tech leader has sports, entertainment on plate |
Henry Samueli made a name for himself as cofounder of Irvine-based chipmaker Broadcom Corp. Now he wants to do the same in sports.
Two years ago, he and his wife Susan made a splash when they assumed management of the Arrowhead Pond of Anaheim from bankrupt Covanta Energy Corp. of Fairfield, N.J.
This year, the Samuelis ventured into the sports world when they bought the Mighty Ducks of Anaheim hockey team and practice rink from the Walt Disney Co. for a reported $70 million.
Corona del Mar-based H & S; Ventures, the Samuelis’ company that coordinates the family’s investments and donations, oversees the hockey and arena ventures.
The move to hockey was a risky one, coming on the heels of a lockout that caused the cancellation of the 2004-05 NHL season. But Disney was actively seeking a buyer and there was the risk that another bidder might choose to move the team out of the area.
That would have been a major blow to the Pond, where the Ducks are the anchor tenant.
To oversee the team, Samueli turned to Pond Chief Executive Tim Ryan, naming him executive vice president and chief operating officer.
Brian Burke took the reins as executive vice president and general manager of the team.
The Ducks are off to a slow start on ice,they are fourth in the Pacific Division. The average attendance through mid-November was 13,500, compared to roughly 15,000 in the year prior to the lockout.
Henry Samueli said there’s a major difference between running a tech company and running a sports team.
“The dramatic difference is the instant feedback in sports,” he said.
At Broadcom, he said, they might not know whether a product was well received for some time.
“In sports and entertainment, you find out in 10 minutes,” he said.
In the corporate world, only shareholders speak up, he said. In sports, every fan speaks up.
“That makes it more exciting and interactive than other businesses,” he said.
“We’re very focused on the Ducks and making it a great season for the fans,” Samueli said.
The Samuelis also are worth watching next year on the basketball front. They hope to lure an NBA team to the Pond. Samueli said there are no current discussions under way to bring a team here.
The Pond will finish 2005 with 150 events, despite the loss of last year’s hockey season. Those events included 29 concerts that featured the likes of Paul McCartney and Gwen Stefani. A year earlier the Pond held a record-setting 154 events.
The Pond last month teamed with Rubio’s Fresh Mexican Grill for two concession stands in the arena that are expected to be in operation by March.
,Sandi Cain
_________________________________________________________
COMPANY TO WATCH: THE IRVINE COMPANY
The Irvine Company, long mainly a residential and commercial developer, has big plans for its fledgling resort division in 2006.
The resort unit, under the direction of former Marriott executive Terry Petty, will be working on golf courses, restaurants and hotels next year.
One of the Irvine Co.’s most high-profile jobs will be managing a 295-room hotel at Fashion Island, previously run by Toronto-based Four Seasons Hotels Ltd. The Irvine Co. took back management of the hotel in November and renamed it The Island Hotel Newport Beach.
The Irvine Co. also has started construction on a 204-room hotel and 128 villas at its Pelican Hill at Newport Coast resort. The resort is set to include a new golf clubhouse, restaurants, spa, meetings rooms and retail.
Petty believes the ability to offer golf, shopping, restaurants, spas and hotels in one package will be a plus. The resort also will target the local market for charity and business events, Petty said.
In another bold move, the company closed down its Pelican Hill Golf Club to install a new sprinkler system and redesign a portion of the courses. The golf courses and clubhouse are expected to open by 2007 with the hotel to follow in 2008.
Also a possibility next year: changes at the Hyatt Regency Irvine, which the Irvine Co. also owns. The company maintains it has no plans for change, but it’s worth watching.
The Irvine Co.’s Crystal Cove Promenade on Pacific Coast Highway continues to grow, with a mix of upscale shops and eateries, such as Mastro’s Ocean Club, expected to draw visitors in 2006.
The company’s resort and tourism plays could pay off as more people choose OC for coastal holiday traveling. The Irvine Co. is part of the recently formed marketing consortium of hotels called The OCeanfront, formed last summer to market Orange County’s coastal resorts. That may help them draw attention to The Island.
And the growing interest,particularly from baby boomers,in resort residences bodes well for the villas at the resort hotel.
,Sandi Cain
