Recovery from two-year pandemic shutdown not complete, but 2022 uptick promising
San Diego County Lodging Association's 2023 Hotel Economic Forecast predicts that the region's hotels are poised to continue their recovery from nearly two years of pandemic shutdowns, welcoming business and convention travelers who are choosing Southern California over other destinations.
"We are recovering, but we're not recovered yet,'' said Fred Tayco, Executive Director of the San Diego County Lodging Association. "We're cautiously bullish that business and convention travelers will make San Diego County their preferred destination in 2023, just like leisure travelers did in the second half of 2021 and throughout 2022."
SDCLA partnered with the San Diego Tourism Authority and RAR Hospitality to produce the 2023 Hotel Economic Forecast. Analysis of the 2023 forecast data suggests San Diego hotels are likely to see:
- Business and convention travel increase 9.8 percent over 2022, but be 10 percent below 2019.
- Leisure travel decrease slightly by 0.8 percent from 2022's rebound spike but still be 3.0 percent above 2019 as financial concerns, rising borrowing costs, a looming recession, and increased competitive pressures from other destinations each have an impact.
- Fewer overall guests – compared to pre-pandemic numbers – yet those guests are likely to stay longer.
- Staffing stabilization as hotels hire and train new workers to match occupancy demands and adjust to increased labor and supply costs.
- Travelers select San Diego over other California regions that were slower to re-open.
"Next year may provide a period of transition for San Diego hotels as they adjust to new travel patterns and bring on new employees,'' said Nate Kelley, Director of Research for the SDTA, and one of two authors of SDCLA's 2023 Economic Forecast.
"San Diego's attractiveness for travelers in 2023 will be its diversity – many places to stay, many places to go – that meet any budget," said Robert Rauch, President and CEO of RAR Hospitality and the other author of SDCLA's 2023 Economic Forecast. "There aren't a lot of other destination places that can say that."
SDCLA, SDTA and RAR Hospitality will unveil the 2023 Hotel Economic Forecast during a luncheon Thursday, Nov. 10 at the Handlery Hotel in Mission Valley.