Quick Take

A fifth consecutive year of growth for area tourism and the impact of the war in Iran on Santa Cruz County agriculture lead off Jessica M. Pasko's weekly survey of local business.

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.

County’s tourism industry sees fifth consecutive year of growth

Santa Cruz County’s tourism industry grew for the fifth year in a row, with visitor spending reaching $1.4 billion in 2025. That growth, which marked a slight uptick from 2024, came even as local tourism officials anticipated a quieter summer season in 2025 amid tariff and immigration concerns.

One of the major factors behind tourism officials’ lowered expectations for 2025 was an anticipated decline in Canadian tourists. Canada is typically second in rank when it comes to Santa Cruz County’s international tourism, with Mexico at the top. 

Still, the county managed to eke out ahead of the prior year by 1.6%, according to Visit Santa Cruz County, the county’s tourism marketing organization. Overall, the local tourism sector has seen steady economic growth of 4.2% over the past decade, and it had the strongest post-pandemic recovery rate of any county in the state.

Additionally, the county’s tourism industry accounted for 11,410 jobs in 2025 (4% more than the prior year) and generated close to $125 million in state and local tax revenue.

Statewide, the tourism industry saw incremental growth even as other sectors saw declines, with direct travel spending in California increasing from $156.2 billion in 2024 to $158.9 billion in 2025, according to a report from Visit California. 

New to the local tourism sector in 2025 was the long-in-the-making La Bahia Hotel & Spa in Santa Cruz, which opened in September at the tail end of summer, typically the county’s biggest season. This coming summer marks the first for the county’s new luxury beachside resort, and it’s expected to attract more visitors. And though hotels in San Francisco and elsewhere haven’t seen the economic boom promised by the globe’s biggest soccer tournament, local officials expect the 2026 FIFA World Cup to draw more crowds, especially around six matches scheduled for Levi’s Stadium in Santa Clara in June and July.  Visit Santa Cruz County and county officials have encouraged local businesses that are planning watch parties and other World Cup-linked events to promote them using a special logo and list them on the Kickoff Santa Cruz County website. (Stay tuned for a forthcoming story on what tourism leaders are anticipating for summer 2026.)

ICYMI: Santa Cruz County farmers raise prices due to soaring diesel, fertilizer costs

a tractor working at Lakeside Organic Gardens in Watsonville
Credit: Kevin Painchaud / Lookout Santa Cruz

Count rising fuel and fertilizer costs as the latest challenge affecting Santa Cruz County farmers. 

As a result of the war in Iran, energy costs are up, and that’s forcing farmers to raise produce prices, ultimately impacting grocery bills in the coming months. The increased costs come as farmers enter their busy spring and summer seasons, when they’re running diesel-powered tractors and spraying fertilizer on key fruit and vegetable crops.

Lookout contributor Dieter Holger spoke to local farmers such as Dick Peixoto, owner of Lakeside Organic Gardens, to hear more about how they’re grappling with the pinch and what it could mean for consumers. Read his full article here.

Ch-ch-changes

  • New interim director at Santa Cruz Film Festival: James Duisenberg was named the interim executive director of the Santa Cruz Film Festival for a second time. Duisenberg has been involved with the organization since its founding in 2000 and has served on its advisory marketing committee and volunteered in a wide range of roles. He was the festival’s technical director from 2014 to 2019, and previously served as interim executive director in 2020-23. He replaced Paul Bronislaw Kmiec, who became the executive director in 2024. The festival returned in full capacity last fall after a hiatus during the COVID-19 pandemic.
Max Turigliatto opened the Alley Oop cocktail lounge in the former The Poet & The Patriot Irish pub in downtown Santa Cruz earlier this year. Credit: Natasha Leverett / Lookout Santa Cruz
  • La Quinta Inn & Suites, Alley Oop owner among winners of first local tourism awards: Visit Santa Cruz County presented three individuals and a business with honors last week at its inaugural Santa Cruz County Tourism Awards ceremony. Alley Oop owner Max Turigliatto received the hospitality professional of the year award. John Dun, a waiter at Hotel Paradox, was named lodging professional of the year, and the lodging leader of the year award went to Herman Wuysang, general manager of the La Quinta Inn and Suites in Santa Cruz. The La Quinta Inn was selected as lodging business of the year. 
  • Watsonville hospital could get temporary financial relief from state: Watsonville Community Hospital, which has struggled from state and federal cuts amid declining patient numbers, could see some new help from the state. A new bill signed by Gov. Gavin Newsom last week introduced an emergency budget measure that allocates nearly $25 million to support nonprofit and public hospitals experiencing significant financial distress. Read more from Tania Ortiz here.
  • Santa Cruz Harbor water taxi back in service for the season: The free inner-harbor water taxi launched service this month ahead of its typical Memorial Day weekend start. Last year, city and harbor leaders piloted expanding operation of the shuttle service amid the closure of the Murray Street bridge, which has put the crunch on businesses in Seabright and the harbor. The bridge partially reopened earlier this year, but another full closure is planned starting next month.
  • Be the Difference Awards to honor retiring executive director: The Volunteer Center of Santa Cruz County will honor 50 community members, businesses and organizations at its annual awards program next week – as well as its longtime executive director, Karen Delaney. Delaney is stepping down in June after 44 years. Other honorees this year include Sante Adairius Rustic Ales, Walnut Avenue Family & Women’s Center, and Jacob’s Heart. The full list is here. The event takes place at The Grove (formerly the Cocoanut Grove) on Wednesday, May 20.
  • Silver Spur to move into vacant Jeffery’s building: Soquel’s Silver Spur restaurant plans to relocate this fall to the space that until recently housed Jeffery’s Restaurant. Silver Spur, which has been serving up breakfast and lunch for more than 50 years, has faced an uncertain future at its longtime location at Soquel Drive and Mattison Lane since the property’s owner announced plans to redevelop the site. Owner and real estate developer Lori Greymont seeks to build a 90-unit assisted living/memory care facility on the site, which would require demolishing the Silver Spur and neighboring businesses. Now, Silver Spur owners Juan Valencia and Daniel Govea have found a new spot: the former Jeffery’s at Soquel Avenue and Capitola Road. Jeffery’s closed earlier this year after almost five decades in business. Read Lily Belli’s full article here.

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

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Save the date 

  • Wednesday, May 13: The Santa Cruz Launchpad job and recruitment fair takes place at The Grove on 400 Beach St. in Santa Cruz from 5 to 7 p.m. More details here.
  • Thursday, May 14: The Santa Cruz Area Chamber of Commerce will hold a local candidates forum in advance of the June 2 primary election. The event will feature candidates for Santa Cruz mayor, Santa Cruz City Council and county supervisor. It takes place from 6 to 8 p.m. at Kaiser Permanente Arena in downtown Santa Cruz and is free to attend. More details are available here.
  • Friday, May 15: The Monterey Bay Economic Partnership will hold its 2026 Regional Economic Outlook, bringing together business, government and community leaders from Santa Cruz, Monterey and San Benito counties. Featured speakers include Jon Haveman, executive director of the National Economic Education Delegation, and Sylvain Leduc, an executive director with the Federal Reserve Bank of San Francisco. The event takes place from 9 a.m. to 1 p.m. at the Embassy Suites in Seaside. Registration, tickets and more details are available here.
  • Thursday, May 21: The Santa Cruz Area Chamber of Commerce will host its next business after-hours event at West Coast Community Bank’s downtown Santa Cruz branch at 75 River St. The event features networking and refreshments from 5 to 7 p.m. Registration is here.

Add your business or networking events to Lookout’s free public calendar, BOLO. Click here to add your event.

Business news worth reading

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Jessica M. Pasko has been writing professionally for almost two decades. She cut her teeth in journalism as a reporter for the Associated Press in her native Albany, New York, where she covered everything...