Boosted by an economic rebound and new attractions, the Carlsbad tourism industry is setting new benchmarks for occupancy and revenue as the books close on 2014.


In July, the occupancy rate hit 87.4 percent, marking the highest single-month rate in many years. That number caps a good year overall, as occupancy for the first seven months of the year has averaged 67 percent.
On the surface Carlsbad and tourism appear to be a can't-miss proposition. Sun, surf, sandy beaches, what's not to like? But Southern California is a competitive market, so it takes hard work to establish your own brand and separate yourself from the crowd.


The City of Carlsbad developed a tourism strategy in 2001, and tourism has grown tremendously since then. The city will partner with Visit Carlsbad and the Carlsbad Tourism Business Improvement District to complete an updated strategy in early 2015 to plan for the next 10 years.


LEGOLAND selected Carlsbad as the home of its first North American theme park and opened in 1999, adding a new attraction to the city's already existing world-class resorts and championship golf courses.


Two years ago, the 215-room Hilton Carlsbad Beachfront Resort & Spa debuted in the Ponto beach area, marking the first new oceanfront resort to open on the San Diego County coast in many years. And last year LEGOLAND opened its 250-room LEGO-theme hotel, attracting more families for extended stays.


Such development sets Carlsbad apart from its neighbors, and that is evident on the bottom line.


The city has more than 4,000 hotel rooms and more than 1,000 time shares. At the close of the 12-month period that ended in July, revenue from the city's Transient Occupancy Tax, the tax charged on occupied hotel rooms and time shares, had increased about 18 percent over the previous 12 months. Transient occupancy taxes contributed about $16 million to the city's general fund in 2013-14, the highest in the city's history. TOT revenue is a significant contributor to the city's operations, helping pay for police and fire protection, parks and libraries, and other core services.


With such success, the tourism industry sees room for growth, and several projects are under construction or in the planning stages, including:
• Grand Pacific Resorts MarBrisa,
162 time-share units
• Grand Pacific Resorts, 71 hotel rooms and
36 time share units
• Fairfield Inn & Suites, Palomar Oaks Way,
99 rooms
• Holiday Inn,
near Palomar Airport,
133 rooms
• Staybridge Suites,
also near Palomar Airport, 106 rooms
• Spring Hill Suites in the downtown Village, 104 rooms
Nancy Nayudu, co-owner of the Pelican Cove Inn on Walnut Avenue near downtown, said the City of Carlsbad has made some positive steps that have helped tourism, including the formation of the Carlsbad Tourism Business Improvement District several years ago and efforts to revitalize the Village.


The city hired Urban Place Consulting Group to continue the Village's revitalization effort, which started under the state's redevelopment process. Sam Ross, executive director of Visit Carlsbad, agreed that the city's recent revitalization efforts have made the Village more attractive to visitors. He added that an even bigger boost was the opening in April 2013 of the new LEGOLAND Hotel, which is proving a strong attraction for families with young children.


"The combination of LEGOLAND's advertising and Visit Carlsbad's advertising, and the fact that we have the first LEGOLAND hotel in North America, has been a really big push for Carlsbad," Ross said.


Besides LEGOLAND, the city has a portfolio of amenities that make visitors want to come back, the ocean beach, excellent shopping, great golf courses, wonderful hiking trails, museums and other cultural attractions.


"I think we're going to see continuing growth, and we're not going to return to where it was in 2009-10," Ross said. "The future is bright."

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