Orange County’s hotels, theme parks and other tourism businesses are looking for the start of a rebound this summer.
After a devastating 2009, indications are that this year’s busy season should be on par with 2008 with an influx of visitors for July’s Major League Baseball All-Star Game and a new draw at Disney’s California Adventure in Anaheim.
The summer events come on the heels of a better-than-expected spring break, according to hoteliers and others.
“It’s nice—not 2006 or 2007 levels nice—but much better than what the industry went through last year,” said Steve Pufpaf, director of sales and marketing at the 1,030-room Anaheim Marriott Hotel next to Disneyland.
In 2009, tourists, conventioneers and other visitors to the county fell by 1% to 42.7 million people from 43.1 million in 2008.
“Last year, people could not or wouldn’t take a vacation for whatever reason,” said Brad Logsdon, director of sales and marketing at the 1,572-room Hilton Anaheim, the county’s largest hotel.
Spending took a bigger hit, dropping by 10% in 2009 to $7.1 billion, according to San Diego-based CIC Research Inc.
This year, 43 million people are projected to visit the county, a subtle increase of less than 1%, according to the Anaheim/Orange County Visitor & Convention Bureau.
The county hit a peak of 49 million visitors in 2007.
Spending this year is seen growing at a slightly faster clip, up 3% to $7.3 billion.
“There is a little light at the end of the tunnel,” said Charles Ahlers, president of the Anaheim/
Orange County Visitor and Convention Bureau. “That’s a great beginning for a comeback.”
A recovering economy and improving consumer confidence are driving factors. That was apparent during spring break, hoteliers said.
“Spring break was pretty positive for us,” Hilton Anaheim’s Logsdon said. “We have seen resurgence in the leisure market, especially with family vacationers.”
The county also is seeing people coming from farther away, a change from last year when many visitors drove in from nearby cities or states.
“Last year was mostly a drive market, but we saw people coming from the East Coast and Midwest during spring break,” Logsdon said.
Occupancy
For the past six months, hotels have seen more visitors each month versus a year earlier, breaking a 22-month streak of fewer stays.
“Occupancy is starting to show vital signs,” Ahlers said. “It’s not robust, but it’s getting measurably better.”
Hotels were 65% full in February, according to the most recent data available from Los Angeles-based PKF Consulting Corp., a hotel brokerage and consultant. That was up from 64% a year earlier.
Reservations at Walt Disney Co.’s three Anaheim hotels are running 10% behind last year as guests continue to book their vacations closer to their anticipated travel dates, according to Tony Bruno, vice president of Disney’s Anaheim hotels and Downtown Disney District shopping center.
For the three months through December, visitors to Disneyland and California Adventure were up about 15% from a year earlier, according to the company, which releases results for the March quarter this week.
For all of 2009, the Disneyland Resort saw visitors rise 8% from a year earlier to 15.9 million people, according Burbank-based Themed Entertainment Association.
“When Disneyland is busy, everyone in the area is busy,” Logsdon said.
As part of the makeover of struggling California Adventure, Disney plans to debut its World of Color show at the park in early June.
The nighttime water show is named after Disney’s first TV series and is expected to draw the Disney faithful as well as first-time visitors.
Each summer, the county’s tourism industry relies heavily on Disney’s marketing muscle to bring visitors here. But with most of California Adventure’s makeover still two years away, Disney’s getting some help this year from Major League Baseball’s All-Star Game, set for July at Angel Stadium of Anaheim.
Two years ago, when the All-Star Game was held in New York, it brought nearly $150 million in business to the city. Last year’s game, in a tougher economy, brought an estimated $60 million to St. Louis.
Anaheim officials are hoping for an impact similar to that of New York, given the improving economy and the city’s place within the larger Southern California market.
