The Calistoga City Council meeting on January 16, 2024, focused on the local tourism economy, particularly the impact of hotel occupancy rates on the community's merchants and restaurants. The discussion highlighted concerns about declining restaurant business, with reports indicating a 30% drop in sales over the past year, despite efforts to boost local dining.

During the meeting, a representative from Visit Napa Valley presented data showing a 12% decrease in hotel visitation compared to pre-pandemic levels, although spending by visitors has increased by 30%. This suggests that while fewer people are visiting, those who do are spending more money, potentially benefiting local businesses indirectly. However, the council members expressed worries about the correlation between lower hotel occupancy and reduced sales tax revenue, which is crucial for funding community services.

Council member Eisenberg raised concerns about whether the city is pricing itself out of the market, affecting occupancy and, consequently, sales tax revenue. The Visit Napa Valley representative acknowledged that while hotel rates have softened slightly, they remain higher than in 2019, which could deter some visitors from exploring local businesses.

Vice Mayor's comments emphasized the need for promoting smaller local businesses, such as family-run bed and breakfasts and independent restaurants, which may struggle against larger resorts that offer comprehensive services. The Visit Napa Valley team assured the council that they are actively working to highlight these smaller establishments through various marketing initiatives, including a campaign featuring affordable wine tasting options and the upcoming Napa Valley Restaurant Week, which aims to draw attention to local dining experiences.

In conclusion, the meeting underscored the importance of collaboration between the tourism sector and local businesses to ensure a thriving economy in Calistoga. The council is looking for strategies to balance hotel occupancy with the success of local merchants, recognizing that a vibrant community is essential for attracting visitors and sustaining economic growth.