Summer is practically here, and Carlsbad's businesses are ready for it.
After a couple of down years due to the recession, there's evidence the tourism industry is going to pick up this summer.
"It's shaping up to be a good summer, if gas prices don't go skyrocketing out of this universe," said Sam Ross, executive director of Visit Carlsbad, adding that there are a lot of exciting things happening in the city that suggest better days ahead.
"All early indicators are rising," he added. "Demand for rooms is increasing, occupancy rates are increasing and there's a nice uptick in the ADR (Average Daily Rate) and the RevPAR (Revenue Per Available Room)."
But more importantly, Carlsbad is experiencing a boom in hotel construction, which bodes well for the future of the tourism in the region and indicates that hoteliers have faith in this area, Ross said.
Construction includes the new Hilton Carlsbad Oceanfront Resort and Spa, which the "Wall Street Journal" reported was the only major hotel being build west of the Mississippi last year, as well as the LEGOLAND Hotel, scheduled for a 2013 opening, and the Hyatt Place San Diego-Vista/Carlsbad (see story below).
"It's extremely rare," Kathy Dodson, Carlsbad's economic development manager, said of the construction taking place in the city. "These are full-service, higher-end hotels. Where in other areas, what you might see is more motels being built, what we have here is first-class hotels… those were not being built anywhere."
When it comes to the local economy, tourism ranks fourth in number of employees (9,233) and sixth in combined payrolls ($233.1 million), behind Trade, Transportation, Utilities and Professional Services.
However, hospitality ranks first among the city's "Clusters of Opportunity," a clumping of industries the city would like to grow.
Though numbers dipped starting in 2009 when the sluggish economy forced many people to give up on vacation plans, not all business suffered.
Josh Cantor, CEO of California Watersports, which rents water sport equipment including kayaks, canoes and paddleboards at the Carlsbad Lagoon, said his business continued to thrive in the bad economy, as more locals decided to stay near home.
"Things evened themselves out," Cantor said, adding that the factor that affects his business is gloomy weather. "People were not driving to other places and stayed here. "
"From this spring, it looks like it's going to be a very good summer," Cantor said. "It seems lined up to be my best summer yet."
LEGOLAND California also continued to thrive, said Peter Ronchetti, the resort's general manager.
"I'm very glad to say we have been able to continue our volume growth story despite the economy, which has been great not only for our continued expansion plans but for an increase in our employment numbers as well," said Ronchetti, adding that the main reasons for LEGOLAND's continued growth include focusing on core customers (families with young children) and capital developments including the LEGOLAND Water Park, Star Wars Miniland and the rotation of exhibits at the SEA LIFE Carlsbad Aquarium and its newest attraction, Pirate Reef.
"I think that holding to the plan and constantly delivering new and compelling propositions for our young guests to engage with has been a huge benefit to our business," Ronchetti said.
Ronchetti said he's "cautiously optimistic" about the year ahead, since the resort is "comfortably ahead of 2011 to date in terms of guest volume and revenue,which makes it a very satisfactory start to the year."
Despite the economy, LEGOLAND has continued to see increased attendance, which has allowed the park to expand and add jobs to the economy. With the addition of Pirate Reef, and the plans for the hotel, LEGOLAND California Resort is a significant and growing employer within Carlsbad, Ronchetti said.
"I believe we have developed something of a 'cornerstone' presence in the local business community, along with other major employers in different industries," said Ronchetti.
Ross noted that the theme park adds much more.
"It's a destination," Ross said. "Without it, Carlsbad could just be another Southern California beach community struggling to find its identity other than just the beach."
***
Visitor Profile
According to a Carlsbad visitor profile compiled in October of 2010, Carlsbad draws many families, with the average size of visitors groups at 3.1, compared with 2.5 for all San Diego visitors. About 25 percent of Carlsbad's visitors traveled in parties of four, and nearly five in 10 were under 45 and traveling with children. On average, the city's visitors stayed three nights. Nearly 53 percent of them traveled to Carlsbad for pleasure or vacation.
Most of Carlsbad's visitors cited the beach and bay (68 percent) and theme parks (63 percent) as the activities they participated most frequently, followed in third place with water sports with 41 percent. All of these percentages were higher than those of all San Diego visitors.
After a couple of down years due to the recession, there's evidence the tourism industry is going to pick up this summer.
"It's shaping up to be a good summer, if gas prices don't go skyrocketing out of this universe," said Sam Ross, executive director of Visit Carlsbad, adding that there are a lot of exciting things happening in the city that suggest better days ahead.
"All early indicators are rising," he added. "Demand for rooms is increasing, occupancy rates are increasing and there's a nice uptick in the ADR (Average Daily Rate) and the RevPAR (Revenue Per Available Room)."
But more importantly, Carlsbad is experiencing a boom in hotel construction, which bodes well for the future of the tourism in the region and indicates that hoteliers have faith in this area, Ross said.
Construction includes the new Hilton Carlsbad Oceanfront Resort and Spa, which the "Wall Street Journal" reported was the only major hotel being build west of the Mississippi last year, as well as the LEGOLAND Hotel, scheduled for a 2013 opening, and the Hyatt Place San Diego-Vista/Carlsbad (see story below).
"It's extremely rare," Kathy Dodson, Carlsbad's economic development manager, said of the construction taking place in the city. "These are full-service, higher-end hotels. Where in other areas, what you might see is more motels being built, what we have here is first-class hotels… those were not being built anywhere."
When it comes to the local economy, tourism ranks fourth in number of employees (9,233) and sixth in combined payrolls ($233.1 million), behind Trade, Transportation, Utilities and Professional Services.
However, hospitality ranks first among the city's "Clusters of Opportunity," a clumping of industries the city would like to grow.
Though numbers dipped starting in 2009 when the sluggish economy forced many people to give up on vacation plans, not all business suffered.
Josh Cantor, CEO of California Watersports, which rents water sport equipment including kayaks, canoes and paddleboards at the Carlsbad Lagoon, said his business continued to thrive in the bad economy, as more locals decided to stay near home.
"Things evened themselves out," Cantor said, adding that the factor that affects his business is gloomy weather. "People were not driving to other places and stayed here. "
"From this spring, it looks like it's going to be a very good summer," Cantor said. "It seems lined up to be my best summer yet."
LEGOLAND California also continued to thrive, said Peter Ronchetti, the resort's general manager.
"I'm very glad to say we have been able to continue our volume growth story despite the economy, which has been great not only for our continued expansion plans but for an increase in our employment numbers as well," said Ronchetti, adding that the main reasons for LEGOLAND's continued growth include focusing on core customers (families with young children) and capital developments including the LEGOLAND Water Park, Star Wars Miniland and the rotation of exhibits at the SEA LIFE Carlsbad Aquarium and its newest attraction, Pirate Reef.
"I think that holding to the plan and constantly delivering new and compelling propositions for our young guests to engage with has been a huge benefit to our business," Ronchetti said.
Ronchetti said he's "cautiously optimistic" about the year ahead, since the resort is "comfortably ahead of 2011 to date in terms of guest volume and revenue,which makes it a very satisfactory start to the year."
Despite the economy, LEGOLAND has continued to see increased attendance, which has allowed the park to expand and add jobs to the economy. With the addition of Pirate Reef, and the plans for the hotel, LEGOLAND California Resort is a significant and growing employer within Carlsbad, Ronchetti said.
"I believe we have developed something of a 'cornerstone' presence in the local business community, along with other major employers in different industries," said Ronchetti.
Ross noted that the theme park adds much more.
"It's a destination," Ross said. "Without it, Carlsbad could just be another Southern California beach community struggling to find its identity other than just the beach."
***
Visitor Profile
According to a Carlsbad visitor profile compiled in October of 2010, Carlsbad draws many families, with the average size of visitors groups at 3.1, compared with 2.5 for all San Diego visitors. About 25 percent of Carlsbad's visitors traveled in parties of four, and nearly five in 10 were under 45 and traveling with children. On average, the city's visitors stayed three nights. Nearly 53 percent of them traveled to Carlsbad for pleasure or vacation.
Most of Carlsbad's visitors cited the beach and bay (68 percent) and theme parks (63 percent) as the activities they participated most frequently, followed in third place with water sports with 41 percent. All of these percentages were higher than those of all San Diego visitors.