At summer’s halfway point, Santa Cruz tourism sees promising gains

With last year marking a major milestone for the post-pandemic comeback of Santa Cruz County’s tourism industry, summer 2024 is continuing an upward trend. As temperatures across the state rise, hotel occupancy rates are rising too, as the area has seen an influx of visitors from inland areas looking to beat the heat.

Jenny Duckart, manager at O’Neill Yacht Charters, said the company has been very busy this summer, especially with tourists eager to get a glimpse of the uptick in whale and shark activity.

“Those types of activities are really drawing people in,” she said. 

She said they’re also seeing a lot more riders from out of town this year, including other parts of California. When temperatures are rising in inland areas, that definitely tends to drive more people to coastal areas and water activities, she said. 

While July and August are always the company’s busiest months, with sails going out seven days a week, “it does feel like pre-pandemic tourism again,” according to Duckart, who has been with the company for 11 years.

Hotel and lodging figures for July won’t be available until next month, but according to Visit Santa Cruz County’s findings, hotel occupancy in June was over 76%, compared to 72.7% in June 2023. That marked a second consecutive month where occupancy increased compared to the same time period in 2023. The occupancy rate for short-term vacation rentals (52.9%) also rose compared to last June. There’s also been an increase in visitors from outside California. While in-state residents still accounted for 74% of visitors in May, the area saw more visitors from other states and other countries, especially Texas, Nevada and Oregon. 

For Hotel Paradox in Santa Cruz, this is the first summer season since the company unveiled its new look last fall,  said Julie Ramey, the hotel’s director of sales and marketing.

“We are seeing an average occupancy approaching 95%,” said Ramey. “Even on historically softer nights like Sundays, the hotel is consistently selling out.”

Ramey said there’s also been an uptick in local residents coming in to check out the new lobby, restaurant and outdoor dining patio, and the hotel is offering a day pass program for use of the pool, hot tub and patio areas, in addition to events like Sunday pool parties featuring a live DJ.

Not far from the Hotel Paradox in downtown Santa Cruz, the city’s all-electric Santa Cruz downtown shuttle service has been busy transporting visitors around downtown and to the Santa Cruz Boardwalk. The shuttle, launched last year to replace the city’s old trolley service, has seen a 15% increase in ridership this year, said Katie Ferraro, economic development coordinator for the city. She said they’ve also seen increased interest in renting the vehicle from nonprofits, local businesses and other government agencies and for events such as weddings. 

Santa Cruz County’s tourism industry has bounced back stronger post-pandemic than any other county in the state, with visitors spending $1.4 billion in 2023 at local hotels, restaurants, gas stations, stores and attractions. The local tourism industry accounts for more than 10,000 jobs, the bulk of those – approximately 6,160 – from lodging and food service businesses. And more such jobs are on the way with the long-awaited La Bahia Hotel & Spa on Beach Street by the Santa Cruz Beach Boardwalk expected to open next spring. Once open, it is expected to employ as many as 100 to 200 people. 

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