www.montereycountyweekly.com FEBRUARY 9-15, 2023 MONTEREY COUNTY WEEKLY 15 As travel began picking up again in earnest after Covid-19 shutdowns, Monterey County hoteliers found themselves losing the race against other California tourist destinations like Napa, San Luis Obispo and San Diego when it comes to attracting high-value guests—the ones who stay more nights and spend more money than day visitors, says Monterey County Convention and Visitors Bureau President and CEO Rob O’Keefe. Making sure those guests choose Monterey County as a destination takes marketing dollars, of which the county has about half as much to spend compared to competitors like Napa Valley. Last year, the county’s hotel industry had around $7.5 million to spend on marketing, generated by guest room fees that range from $1 to $2 per night per room. With 12,000 rooms in Monterey County, $7.5 million comes to $649 per room. Napa has $1,300 to spend per room. Sonoma County has $1,100 per room. “It’s extremely difficult to market against those kinds of odds,” O’Keefe says. “We’ve been getting our butts kicked competitively, even before Covid.” The guest room fees are possible because, in 2006, hotel owners in the county agreed to form a tourism improvement district (TID) in order to collect the fees and use it on marketing expenses. The money is collected by the city and county governments—with each jurisdiction retaining 1 percent of fees collected to reimburse administrative costs—and deposited with the TID. The MCCVB uses the money to market the area and specific hotels. The district was renewed in 2018 for five years and its leaders—hotel owners who sit on a committee with the MCCVB—are now asking for a 10-year renewal. The biggest change the TID is asking for is a new $7-per-room, per-night fee for luxury hotels like the Lodge at Pebble Beach and Post Ranch Inn in Big Sur. Limited-service hotels would be raised from $1 to $1.50 and full-service hotels from $2 to $4.50. The point, says O’Keefe, is not to bring a higher number of tourists to the county, but to bring higher-value visitors who will spend more, like international travelers. Increasing hotel stays by one more night over the average could bring in more than $877 million annually in incremental tourism spending, O’Keefe estimates. The renewal must be approved by each participating city council and the Monterey County Board of Supervisors. While most jurisdictions are in favor, on Feb. 7 Sand City’s city council delayed a vote in order to gather more information. The city currently pays $2,000 a year to be included in marketing materials by MCCVB. It does not have a hotel yet, but is slated for two in the future. If it does not join the TID it will not be able to join for 10 years and the city’s new hotels will not be included in MCCVB marketing materials. The goal is to send the renewal with approvals to the city of Monterey, the lead agency of the TID, by Feb. 21 for final approval by the Monterey City Council. It would take effect July 1. To Market Hoteliers agree to higher guest room fees in a race against other tourist destinations. By Pam Marino The Lodge at Pebble Beach is one example of a luxury hotel, defined as a full-service hotel with additional amenities like a golf course or spa, with an average rate of over $500 per night. NEWS “We’ve been getting our butts kicked.” DANIEL DREIFUSS NEW HOURS WEDNESDAY - SUNDAY: 4PM TO 10PM | MONDAY & TUESDAY: CLOSED LOCATED BEHIND THE PORTOLA HOTEL & SPA | COMPLIMENTARY PARKING (831) 649-2699 | PETERBSBREWPUB.COM SPORTS ON 18 HDTV’S & PET-FRIENDLY HEATED PATIO HAPPY HOUR 4PM TO 6PM & 9PM TO 10PM ALL NIGHT HAPPY HOUR WEDNESDAY FOR COLLEGE NIGHT | THURSDAY FOR MILITARY NIGHT ALL NEW
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