This week in Santa Cruz County business: Tourism's hot summer; Joby’s air taxi gets $500M more from Toyota

Quick take:

In Santa Cruz County business news this week, Jessica M. Pasko reports on a strong summer for local tourism, thanks in part to high temperatures inland. Toyota is investing big in Joby Aviation's air taxi, and local firm Parallel Flight Technologies has landed a Department of Defense program grant.

Each week, we’re taking a closer look at the movers and shakers, the growth of industries, and what’s really driving the Santa Cruz County economy. I’ll be spotlighting some of the biggest areas for opportunity, updates on local development and all things underpinning the regional business scene, each Wednesday.

Got ideas? Send them my way to news@lookoutlocal.com with “Business News” in the subject line.

Hotel business up from 2023, driven by high temps

Hotel occupancy rates this summer surpassed the summer of 2023 as the county saw an influx of visitors coming to beat the heat of other parts of California. According to the latest numbers from Visit Santa Cruz County, the county’s tourism marketing organization, hotel occupancy ranked at 75% in August compared to 70% last August. June and July occupancy rates were also higher than those same months last year.

In 2023, Santa Cruz County made the biggest post-pandemic recovery of any county in the state, with tourism revenues up 35% compared to 2019. Tourism is one of the county’s largest industries, accounting for 15,600 jobs in August or about 15% of the county’s total jobs. That includes hotels, restaurants and attractions, which typically increase hiring to accommodate summer demand.

Toyota to invest $500 million in Joby Aviation

Joby Aviation is getting another $500 million from Toyota Motor Corp. as the Santa Cruz-based company moves closer to launching commercial passenger service with its electric air taxis. The investment will be made in two parts, one later this year and the second in 2025. It brings Toyota’s total investment in Joby to $894 million. Since 2019, Toyota has also invested time and resources to Joby’s efforts, and last year, the two companies signed an agreement for Toyota to supply key components needed for producing Joby’s aircraft.

Joby executives plan to launch commercial service first in New York City and Los Angeles, which they expect to happen sometime next year. In August, executives said that the company was working on the fourth of five stages of a required certification process. It also recently rolled its third aircraft off a pilot production line in Marina.

Joby’s electric air taxis are designed to carry a pilot and four passengers at speeds of up to 200 mph, and its commercial service will operate much like Uber and Lyft, allowing consumers to use a mobile app to hail an air taxi.

Ch-ch-changes: Openings, closings and other developments

Parallel Flight gets $2 million from the Department of Defense: La Selva Beach-based Parallel Flight Technologies will get another $2 million from National Security Innovation Capital, a program within the Department of Defense’s Defense Innovation Unit. The money will support the next phase for Parallel Flight’s Firefly, a special type of drone that combines heavy lifting and long duration, designed for use in firefighting, health care and more. That will include testing to confirm the aircraft’s operational limits and abilities in diverse conditions, building more aircraft and conducting demonstrations to showcase Firefly’s potential for defense applications. The DoD previously awarded the company $1 million for its work.
Watsonville Coast Produce marks half a century in business: Family-owned and operated wholesale produce distribution company Watsonville Coast Produce is celebrating its 50th anniversary this month. Gary Manfre and his partners purchased what was then a seven-person operation in 1974 and developed the company into a wholesale produce leader. Today the company has more than 100 employees, with Manfre still at the helm.
Monterey Bay Economic Partnership seeking nominees for regional leadership awards: The Public-Private Partnership Award and the Community Impact Award are now open for submissions of projects, individuals and organizations making a significant difference in Santa Cruz, San Benito and Monterey counties. The awards are sponsored by the Monterey Bay Economic Partnership, a member-supported nonprofit. Previous honorees include Salinas Homekey and the partnership among Joby Aviation, the City of Marina and Monterey County to bring Joby’s facilities to Marina.
Bay Federal hires new risk management expert: Rita Toston has joined Bay Federal Credit Union’s senior leadership team as vice president of risk management. She will direct the organization’s enterprise risk-management program and monitor the credit union’s risk profile. She brings 20 years of banking experience to Bay Federal, including expertise in audits and compliance.

Got hires, promotions, or departures to report? Send them to news@lookoutlocal.com with the subject line “Career changes.”

Looking at the numbers

2 cents: That’s the proposed tax for soda and other sweetened beverages that would take effect in the city of Santa Cruz under a proposed measure on this year’s local election ballot. A group backed by the American Beverage Association has spent almost $800,000 to oppose Measure Z. Similar taxes in other cities have been shown to reduce the sale of sugar-sweetened beverages, Christopher Neely noted in his In the Public Interest newsletter this week.

Save the date

Thursday, Oct. 10: Workforce Santa Cruz County is sponsoring a job fair at the Cocoanut Grove in Santa Cruz from 4 to 6 p.m. For more details and to register, click here.
Thursday, Oct. 17: The Santa Cruz County Chamber of Commerce will hold its women’s leadership summit at Mount Hermon Conference Center from 9:30 a.m. to 3:45 p.m. The agenda includes keynote speakers, breakout sessions and networking opportunities focused on empowering women in their professional and personal lives. Registration and details here.
Friday, Oct. 18: Santa Cruz Works will host a breakfast at Swellcycle’s headquarters in the Wrigley Building on the Westside of Santa Cruz from 8 to 9:30 a.m. Attendees will get a chance to learn about the company’s 3D printing processes. Register here.
Wednesday, Oct. 23: The Santa Cruz County Chamber of Commerce hosts its next business after-hours event from 5 to 7 p.m. at Solaire Restaurant & Bar inside the Hotel Paradox in Santa Cruz. Beverages from West Peak Sparkling Spirits and wines from Big Basin Vineyards will be served, along with appetizers and oysters from Parker Presents: Bill Oysterman. Details here.
Friday, Nov. 8: The Monterey Bay Economic Partnership hosts its 2024 annual State of the Region event from 9 a.m. to 5 p.m. at the CSUMB University Center in Seaside. Representatives from Santa Cruz, Monterey and San Benito counties will speak about the region’s economic progress and other key issues. Speakers include state Sen. John Laird and UC Santa Cruz Chancellor Cynthia Larive. Register here.