The MCCVB attended the San Francisco Convention & Visitors Bureau’s (SFCVB) Northern California Outlook Conference last week. The previous year’s “cautiously optimistic” outlook has changed over the course of the last six months due to the realities of an economy officially in recession. Thomas Callahan of PKF Consulting, presenting the “Outlook for San Francisco’s Hotel Occupancy,” admitted that economic forecasts are changing weekly.
Callahan reported relative certainty that 2009 would be a challenging year (bottoming out 3rd Q) and 2010 (2nd or 3rd Q) would bring some recovery, but a meaningful recovery will not be realized until 2011. Properties across the United States could see a decrease in demand of 3%, and a decrease of RevPAR by 10% in 2009, with numbers rising slightly in 2010.
In San Francisco, current convention business is pacing well to target for 2009 and 2011, but is pacing at 79% in 2010. With results from an American Express survey, Katie Callahan-Giobbi of Meeting Professional International weighed in on planner expectations, reporting that meeting planners will be looking to cost savings, value, flexibility and innovation as central to success; not gifts and amenities.
2007 and 2008 brought significant growth in international visitation to San Francisco, and major markets (United Kingdom, Germany, Japan, France, and Australia) continue to show strong growth potential.
Visitors will continue taking fewer trips, spending less, and staying close to home when they do travel. The MCCVB’s current marketing plan adjusted for this shift in consumer behavior initially during the fall season, and made further adjustments in January for the spring outreach (read more in this issue of the newsletter); targeting Northern California and promoting value offers within the destination. With the challenge of an economy in recession, the MCCVB is poised to support the destination with strategic marketing programs and to leverage the strength of the destination to support its partners.
For more information on the Outlook Conference, please contact the SFCVB at 415-974-6900.
Monterey County Convention & Visitors Bureau P.O. Box 1770, Monterey, CA 93942 1-877-MONTEREY info@mccvb.org
In partnership with Monterey County and the cities of Carmel-by-the-Sea, Del Rey Oaks, Marina, Monterey, Pacific Grove, Salinas,
Sand City, Seaside, Soledad, Pebble Beach, Moss Landing, Carmel Valley, Big Sur, and Salinas Valley.
© Copyright 2009 Monterey County Convention & Visitors Bureau
