Lake Tahoe Truckee Tourism Economy Slows in 2023
June 18, 2024, SOUTH LAKE TAHOE, CA – The Lake Tahoe Truckee Regional Lodging Trend Report for 2023 points to a slowing overnight visitor tourism economy, primarily driven by a 3.6 percent decrease in occupancy. With the average daily rate (ADR) increasing only slightly, transient occupancy tax (TOT) revenues fell by 3.6 correspondingly. Although many months were down in 2023, September was a noticeable exception and posted strong gains. In terms of the individual jurisdictions, performance varied, and not all posted losses.
The findings in the report are based on analysis conducted using the Tourism Impact Model (TIM). The TIM data is based on government tax records from Placer County, Washoe County, the Town of Truckee, the City of South Lake Tahoe, El Dorado County, and Douglas County. It encompasses data from 2018 through 2023.
Looking at longer-term trends using the TIM, we see ADR growth more than compensating for declines in occupancy. This post-pandemic shift, where TOT revenue is modestly higher than pre-pandemic, and the amount of revenue per overnight visitor has increased, holds promise. As SMG President Carl Ribaudo suggests, “Volume-based businesses may need to adjust their product offerings as well as marketing and pricing strategies.” This shift from volume-based tourism to fewer overnight visitors spending more can lead to a more sustainable and profitable tourism industry, a future we can all look forward to.
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