Tourism is booming in Newport Beach
With its popular dining and shopping options, recreational harbor and proximity to the ocean, Newport Beach has attracted visitors for more than 100 years. And based on data from the city’s marketing organization, the city’s tourism appears to be going strong.
On Wednesday, Newport Beach & Co., which handles marketing for the city, announced that it booked 135,675 hotel rooms in Newport Beach during the 2014-15 fiscal year, the most since the organization was founded. Those bookings generated $72.6 million in revenue, the organization said at its annual marketing outlook dinner.
The Newport Beach & Co. bookings accounted for about 30% of all hotel rooms rented in the city during the fiscal year, which ended June 30.
In 2012-13, the company booked 30,348 rooms, and in 2013-14, it booked 56,919, according to Jenny Wedge, senior director of media relations and brand management for Newport Beach & Co.
Last fiscal year, Newport Beach entertained about 7 million visitors who spent more than $1 billion in town, data show. Overall spending on hotel rooms in Newport Beach grew from about $138 million in 2011-12 to $310.5 million last fiscal year.
At least $25 million of the city’s annual tax revenue comes from visitors staying at hotels or other short-term residential rentals, making that the third-largest revenue source for Newport Beach’s general fund, according to City Manager Dave Kiff. When guests stay in hotels and other lodging, or even in private residences using smartphone apps like Airbnb, they pay a tax to the city, which is put toward park maintenance, infrastructure and services for residents.
“This revenue benefits our residents a great deal — it offsets important costs, allowing us to keep the streets paved, great public safety services, the bay clean and the libraries and parks looking great,” Kiff said.
In a study conducted by MMGY Global, a travel and hospitality marketing firm, 30% of travelers surveyed in 2014 expressed a desire to travel to Newport Beach, up from 22% in 2013.
Peter Yesawich, vice chairman of MMGY Global, said he encourages hospitality businesses to keep an eye on the desires of young travelers.
Millennials, the generation whose current age spans from 18 to 35, recently passed the baby boomer generation as the one with the most desire to travel, according to MMGY Global data. And when they travel, they seek more variety in their experiences, meaning they’re less likely to visit the same place year after year, the firm says.
With that in mind, some local hotels, like The Resort at Pelican Hill in Newport Coast, have started updating their offerings to appeal to a younger crowd.
Most recently, the resort has modernized its main lounge, switched out its live band for a resident DJ and added activities such as art shows and pop-up boutiques featuring the latest fashions. The resort also has placed an emphasis on craft cocktails and small bites, which it believes are more appealing to millennials.
“Now the experience is a little less formal,” said Kate Starr, director of communications and public relations for Pelican Hill.
Starr said the resort also is emphasizing social media, adding Instagram and Facebook accounts for the resort and its restaurants in an effort to reach younger travelers.
Steve Rosansky, president of the Newport Beach Chamber of Commerce, said it’s important to the local economy for out-of-towners to visit and spend money.
“Tourism is probably our No. 1 industry in town,” he said. “We derive a lot of revenue from bed tax and sales taxes when people shop in our stores or eat at restaurants in the city. It’s one of the key underpinnings of the Newport Beach economy.”
