This week in Santa Cruz County business: Local hotel industry finishes July strong

Quick Take

In her weekly roundup, Jessica M. Pasko reports on an occupancy uptick for Santa Cruz County hotels – with a slight dip in room rates – plus comings and goings, numbers to know and events for your calendar.

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.

July sees increased demand for county’s hotels, but a dip in room rates

As summer draws to a close, all signs are pointing to 2024 being a strong season for Santa Cruz County’s tourism industry.

County hotels remained busy in July, with occupancy at 79.4%. That marked a slight uptick from June, when the occupancy rate was just over 76%, according to the latest figures from Visit Santa Cruz County, the region’s nonprofit tourism marketing agency. It was also 2.8% higher than in July 2023. Nearby Monterey County ranked at 83.4% occupancy in July, while San Francisco dropped to 66.8%.

Despite increased demand, room rates took a slight hit, with average daily room rate down slightly. Locally, hotels collected just under $25 million in total revenue in July, marking a 0.3% decrease from July 2023. However, on another positive note, the leisure and hospitality industry saw job gains compared to the same period last year, for a total of 15,800 jobs. The county is set to gain another 155 hotel rooms and an estimated 100 to 200 jobs next year when the La Bahia Hotel & Spa opens, among other in–process hotel projects.

Santa Cruz Beach Boardwalk. Credit: Kevin Painchaud / Lookout Santa Cruz

The local tourism industry continues to bounce back from the hit it took during the pandemic. Santa Cruz’s tourism revenues last year represented one of the biggest comebacks for any county in the entire state. While in-state visitors remain the biggest source of the county’s tourists – accounting for 66.8% of visitors in July and 64.9% in June – Visit Santa Cruz County officials announced last month new efforts to recruit more tourists from China and South Korea. Staff from Visit Santa Cruz County will join the state’s tourism organization on a trip to Beijing and Seoul this fall to meet with tour operators and journalists. Australia continues to be another promising market for the organization; it’s tied with Canada as the county’s third-largest overseas market behind the United Kingdom and Germany. In an interview last fall with Lookout, Visit Santa Cruz County leaders cited Mexico, Brazil and the Netherlands as other promising markets for bringing in new visitors.

ICYMI: 22 charged with retail cannabis thefts that hit Santa Cruz County

State Attorney General Rob Bonta joined Santa Cruz County law enforcement last week to announce 22 arrests made in a marijuana-focused crime spree that spanned nine counties. The crime ring was linked to 15 different cannabis burglaries, about half of which occurred in Santa Cruz County. The burglaries netted almost 1,000 pounds of cannabis in addition to plants, gummies, edibles and cartridges. Read Christopher Neely’s story here.

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

Universal Audio helps raise money for music education: Scotts Valley-based Universal Audio, which builds audio production tools, is once again working with nonprofit Save the Music Foundation, which helps students and schools with support for music education. Through its philanthropic arm, UA Giving just ended a weeklong back-to-school giveaway campaign. Donations will help fund a music technology grant for students in grades 9-12 at schools around the country to learn about creating, recording and producing electronic music.
New low-income housing complex proposed in Scotts Valley: At its regular meeting Wednesday evening, the Scotts Valley City Council will consider whether to support a developer’s request for state money to help pay for construction of a proposed 25-unit apartment complex. In their report, city staff recommend that the city council authorize the city manager to sign a letter of support for the developer’s application for state funding under the state’s Disaster Recovery Multifamily Housing Program. Plans for the three-story Beverly Garden apartment complex on Scotts Valley Drive would include 24 units for low-income households and one unit for a complex manager. The meeting will be held at 6 p.m. at 1 Civic Center Dr. in Scotts Valley and will be streamed via YouTube. Residents can also participate via Zoom. Details here.
Tamara Vides named Watsonville city manager: Last week, the Watsonville City Council confirmed Tamara Vides as the city’s new manager. Vides has served as interim city manager since Rene Mendez left for the city of Salinas earlier this year; she also served as interim city manager after Matt Huffaker left to take the Santa Cruz city manager role in 2021.

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

Looking at the numbers

$17.88 per square foot per year: That’s the asking price for the retail space on Soquel Avenue that’s been home to Midtown Surf Shop & Coffee Bar for the past few years. Owners of the 4,800-square-foot space at 1126 Soquel Ave. are seeking a new tenant as Midtown Surf Shop moves out. Details here.

Save the date

Thursday, Sept. 5: The Santa Cruz County Chamber of Commerce holds its next Women in Business Luncheon at the Seacliff Inn in Aptos from 11 a.m. to 1 p.m. Dr. Melinda White, an internal medicine specialist at the Dignity Health Medical Group, is the featured speaker, on the topic of self-care. Details and registration here.
Wednesday, Sept. 11: The City of Santa Cruz is hosting a community feedback meeting to hear ideas from the public on how the city should spend $800,000 in federal housing and community development funds it has received. The meeting takes place from 5:30 to 6:30 p.m. at the London Nelson Community Center, 301 Center St. Feedback also can be submitted through this online survey.
Wednesday, Sept. 25: The Aptos Chamber of Commerce will showcase local businesses at the Marketplace on the Green, from 4 to 7 p.m. at Seascape Golf Course in Aptos. More information here.
Saturday, Sept. 28: The El Pajaro Community Development Corp. and the Regional Women’s Business Center will hold a Latina Entrepreneurship Leadership Conference from 9 a.m. to 2:30 p.m. at the Watsonville Civic Plaza. Tickets and registration here.
Thursday, Oct. 3: The Santa Cruz County Chamber of Commerce will hold a “business after hours” event at Abbott SPI Inc., a local security guard service. The networking event takes place from 5 to 7 p.m. at Abbott’s offices at 2030 North Pacific Ave., Suite A, in Santa Cruz. It’s $20 for non-members and $10 for chamber members to attend. More details here.
Saturday, Oct. 5: Santa Cruz Community Health will mark its 50th anniversary with a fundraising gala at the Hotel Paradox in Santa Cruz, from 6 to 10 p.m. The event will feature speakers, a sitdown dinner and a cash bar. Tickets start at $150. For details and to purchase tickets, go here.
Thursday, Oct. 10: Workforce Santa Cruz County is sponsoring a job fair at Cocoanut Grove in Santa Cruz from 4 to 6 p.m. For more details and to register, click here.
Friday, Nov. 8: The Monterey Bay Economic Partnership hosts its 2024 Annual State of the Region event from 9 to 5 p.m. at the Cal State Monterey Bay 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. Register here.