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Visit Santa Barbara cites record 2024 transient occupancy tax, outlines $7.9M marketing plan for 2025

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Summary

Visit Santa Barbara told the City Council that 2024 set a record for transient occupancy tax collections and presented a $7.9 million promotional budget for 2025; council members and industry representatives discussed visitor markets, workforce development and local partnership opportunities.

Visit Santa Barbara President and CEO Kathy Janega Dykes told the Santa Barbara City Council on Feb. 4 that the city reached an all‑time high in transient occupancy tax (TOT) collections in calendar year 2024 and that the organization plans $7,900,000 in promotional investments in 2025 to drive overnight stays.

Janega Dykes, presenting an annual report on behalf of Visit Santa Barbara and the region’s TBID (Tourism Business Improvement District), said 2024 TOT collections were about $3 million higher than 2023, an 11% year‑over‑year increase. She also reported that 2024 hotel occupancy in Santa Barbara rose about 3%, that Santa Barbara Airport served roughly 1.4 million passengers (an 11% year‑over‑year increase), and that Visit Santa Barbara’s outreach and advertising produced an estimated 1.2 million customer referrals to local businesses, 40% of which were directed to lodging.

The presentation emphasized the role of visitor spending in supporting city services and local jobs. "When we succeed in this mission, a strong visitor economy sustains local jobs, tax revenues fund vital services, and the culture of this beautiful community is supported," Janega Dykes said.

Council members questioned Visit Santa Barbara staff about visitor origin markets, spending patterns, and workforce development. Janega Dykes said roughly a quarter of visitors come from the Los Angeles area and more than half from Southern California generally; visitors from farther markets such as the East Coast tend to stay longer and travel year‑round. She and council members also discussed the organization’s efforts to direct visitor spending beyond downtown to neighborhood businesses and to expand workforce recruitment and training programs for hospitality jobs.

Several industry representatives and community partners spoke in support of the Visit Santa Barbara report. Chris Haster, Santa Barbara Airport director, called the airport‑tourism partnership “key for promoting tourism and supporting local air service.” Warren Nolchon, general manager of Hotel Californian, and local retail and visitor‑services representatives described the TBID and Visit Santa Barbara’s marketing work as essential to filling lodging, restaurant and retail businesses.

Council members expressed support for Visit Santa Barbara’s strategic direction while asking staff and the presenter to monitor impacts including changing visitor spending patterns and possible workforce shortfalls. "We are positioned well compared with peer destinations," Janega Dykes said, urging continued strategic investments in air service development and targeted marketing.

The council did not take legislative action on the presentation, which was received as an informational item.