HomeMy WebLinkAbout2002-08-06; City Council; 16821; Tourism Policies And Program StrategyCITY OF CARLSBAD - AGENDA BILL .-
I
,B# 16,821 - TITLE:
7-9-02 ADOPTION OF
TOURISM POLICIES AND PROGRAM STRATEGY
ITG.
IEPT. HlRED
CITY OF CARLSBAD
CITY MG
RECOMMENDED ACTION:
Approval of City Council Resolution No.*00*-206 ADOPTING the Tourism Policies and Program
Strategyfor the City of Carlsbad.
ITEM EXPLANATION:
Backgroundhtroduction
In response to one of the City Council Goals for 1999-2000, a staff team worked with a private
consultant (Economic Research Associates) to complete an assessment of the impacts on, and needs of,
tourists in the City of Carlsbad as related to existing and projected service needs, projected development
needs, codbenefit analysis, parking and other related services or facilities. The final assessment report
was completed and submitted to the City Council for review in June/July, 2000. In the subject report,
Economic Research Associates made several recommendations. One of the key recommendations was
that the City of Carlsbad should prepare a Tourism Master Plan or Tourism Strategy.
Before proceeding with a Tourism Master Plan or Tourism Strategy, the Consultant and staff decided it
would be appropriate to first complete a survey to determine tourist expenditure habits, lodging
locations, visit characteristics, attitudes about Carlsbad and needs for services and facilities. Staff also
wanted to assess the shared habits and needs of residents of Carlsbad in the area of tourist-related
services and/or facilities. Therefore, Economic Research Associates with assistance from the Social and
Behavioral Research Institute (SBRI) Survey Lab conducted the desired survey for the City of Carlsbad.
Based on the findings of the Tourism Zmpact Assessment and the noted surveys, staff has determined that
a Tourism Master Plan does not appear to be necessary. The City has a number of existing policy
statements which would adequately address implementation actions which will continue to support the
addition or enhancement of tourist-oriented facilities, services and/or activities within the City of
Carlsbad. Staff believes that it would be best to simply summarize these various policies/programs
within one document and then include any additional actions which may be beneficial to the noted
efforts. As a result of staff‘s analysis, a report has been prepared and titled “City of Carlsbad - Tourism
Policies and Program Strategy”. The report is on file in the City Clerk’s Office.
Summary of Tourism Policies and Program Strategy
The attached Tourism Policies and Program Strategy provides information on the key findings of the
Tourism Impact Assessment and the Tourist/Resident Surveys as noted above as well as a comprehensive
statement of all of the existing policies the City has adopted which address tourism and tourist-related
activities. Staff has also incorporated a few additional policy and/or recommended actions/programs to
better coordinate tourism marketing, development, infrastructure, and service provision efforts with
Carlsbad. It is important to note that the attached Strategy has been developed by staff with the
assumption that tourism is beneficial to the City of Carlsbad, and should continue to be encouraged from
a policy and action plan standpoint. Staff is requesting that this tourism assumption be discussed by the
City Council and appropriate direction be provided to staff as to how the Council wishes to proceed on
the policies and actions related to tourism.
AB #16,821
Page 2
Tourism ImDact Assessment
The Tourism Zmpact Assessment was completed in 2000 to determine whether or not the benefits of
tourism outweighed the costs. The Assessment concludes that Carlsbad has become a major tourist
destination over the past few years and provides the facts to support that tourism has, and will continue
to have, a positive impact financially on the City. The revenue generated by tourism exceeds the cost by
nearly $6 million per year (during the study year) when consideration was given to all of the various
revenue sources (including transient occupancy tax, sales tax and property tax).
TouristResident Surveys
SBRI completed a TouristResident Survey in 2001 specifically to inquire into the opinions of both
tourists and residents on the adequacy and quality of attractions and tourist-related activities and/or
facilities offered/available within the City of Carlsbad. Generally, tourist and residents both indicated
that they are very satisfied with the quality and level of existing tourist or leisure-oriented services
and/or attractions within the City.
From a demographic standpoint, the survey results indicate the following differences in the various
visitors:
The summer visitors are primarily families with children looking for active entertainment in family-
oriented activities and programs. The winter visitors are primarily more senior households that are
coming to Carlsbad simply to enjoy the weather and are more leisure or passive in their approach to
tourist-oriented activities.
Although there were some areas identified which could be addressed to improve the overall leisure
activity experience, the survey findings indicate that overall both tourists and residents seem to be fairly
pleased with the environment and tourist- or leisure-oriented activities offered within Carlsbad as noted
above. In general, there seemed to be support for enhancing existing tourist-oriented or entertainment
areas rather than creating new, centralized entertainment areas within the City. For example, it was
noted that additional dining, shopping or entertainment activities could be added to the Village area to
increase its popularity. In addition, golf, aquatics and performing arts were the leisure activities most
commonly identified as desired additional activities for existing as well as new areas. From a
promotions standpoint, the two markets which appear to be overlooked in Carlsbad are 1) the out-of-
town guests of residents and regional residents, and 2) organized groups. These are population areas that
are recommended for more focus for marketing purposes.
AB #. 16 821
Page 3
Recommended Actions
The Tourism Policies and Program Strategy includes a five year action plan for implementation
purposes. As noted above, the proposed actions are based on the assumption that “tourism” is beneficial
to Carlsbad and should continue to be supported from a policy and action plan standpoint. The action
plan can be divided into two categories: 1) actions to enhance the existing inventory of tourist- or
leisure-oriented activities for both existing tourists and residents of the City, andor to encourage
existing tourists/residents to spend their money in Carlsbad rather than surrounding cities, and 2) actions
to enhance promotions of Carlsbad and encourage additional tourists or the region’s residents to enjoy
activities within the community.
The following goals are set forth as action items for consideration andor implementation during the
period beginning in program calendar year 2002 and ending in program calendar year 2006.
Category 1: Actions to enhance the existing inventorv of tourist-oriented or leisure-oriented activities:
1. Review city codes, policies andor fee structure, as appropriate, to identify constraints and
opportunities to provide for the more effective attraction of new tourist-commercial, recreation
and entertainment uses to the City of Carlsbad for the enjoyment of tourists and residents.
2. Complete one or more Specific Plans for properties within the South Carlsbad Coastal
Redevelopment Area and identify sites for the potential development of tourist or leisure
oriented facilities or services along the coast for the enjoyment of tourists and residents.
3. Pursue opportunities to develop one or more of the following leisure activities/facilities within
Carlsbad: additional movie theater(s), a performing arts center, an aquatics program center, new
dining opportunities (specifically a seafood restaurant or steakhouse), andor other activities
which address the populations identified within the touristhesident survey.
4. Consider a city-wide signage program which will allow for the identification of key public
facilities andor landmarks within the City to facilitate easier access by both tourists and
residents.
5. Work with North County Transit District to research opportunities for enhancing public
transportation for both tourists and residents to allow for easier access to facilities which provide
tourist-oriented or leisure entertainment.
6. Develop andor revise a comprehensive Special Events policy which identifies the goals and
objectives of the City as to support for community events which result in large gatherings of
people andor road closures within Carlsbad, and addresses the benefits that must be identified
for these events to receive approval from the City.
Category 2: Actions to encourage additional TouristsRegion Residents to visit Carlsbad:
7. Participate in the effort to develop and implement a Historic 101 Marketing and Promotions
campaign which will focus on activities and facilities which can be easily accessed while driving
the old Highway 101 through Carlsbad and the other San Diego County coastal cities.
8. Consider support of a marketing campaign to promote the various tourist-oriented or leisure
activities available in Carlsbad to the region’s residents andor out-of-town guests of Carlsbad
residents. 3
AB# 16,821
Page 4 -
9. Consider support of a pilot promotions program to test the market for group sales or activity
packages for Carlsbad, and/or to enhance “Carlsbad” as a brand name in the visitor industry.
Staff Recommendations
The City of Carlsbad has a number of tourist or leisure-oriented programs and strategies already
existing within several different documents such as the General Plan, Village Redevelopment Master
Plan and Design Manual, and Economic Development Strategic Plan. In addition, the City already
provides tourist information and marketing by funding programs ($363,000) offered by the Carlsbad
Convention and Visitor’s Bureau. Based on the fact that the City has several existing policy statements
and programs which support the desired level of tourism or leisure entertainment within the community
and are adequate to enhance the tourist experience or quality of life for residents, it does not appear that
a need has been demonstrated to develop a comprehensive Tourism Master Plan. However, it does
appear to be necessary to develop a single document which incorporates all of the existing policies and
to make some recommendations for additional activities and/or programs for implementation purposes.
Therefore, the attached Tourism Policies and Program Strategy has been prepared for adoption by the
Carlsbad City Council as its official statement on tourist or leisure-related programs andor activities. It
incorporates all of the existing policies on tourism into one document and provides recommendations on
additional activities for the City to pursue to enhance the tourism experience for visitors and the quality
of life for residents. At this time, staff is recommending that the City Council approve the attached
Tourism Policies and Program Strategy.
It is important to note again that the attached Strategy was developed with the assumption that tourism
has been beneficial and that Carlsbad should at a minimum maintain the existing level of tourism and
take the appropriate actions to enhance the experience for both tourists and residents where a need has
been demonstrated or a desire indicated as noted within the survey findings. If the Council would like to
simply enhance the existing tourist experience in Carlsbad and/or encourage more tourists and residents
to spend their money in Carlsbad for tourist- or leisure-oriented activities, the recommended actions 1-6
(as noted above) would be the most appropriate for implementation purposes. If the Council would also
like to attract additional tourists or regional residents to Carlsbad, it would be appropriate to incorporate
the recommended actions 7-9 (as noted above). The attached Strategy includes all of the recommended
actions (1-9). However, if the Council does not wish to encourage additional tourists, the Council may
wish to delete recommended actions 7-9 from the Strategy.
FISCAL IMPACT:
At this time, staff does not have an estimate of the potential fiscal impact of the programs set forth
within the Tourism Policies and Program Strategy as recommended actions as part of the 5 year
implementation strategy. Each program will be evaluated individually prior to implementation to
determine its fiscal impact.
EXHIBITS:
2002-206
1. City Council Resolution No./approving the City of Carlsbad’s Tourism Policies
and Program Strategy.
2. City of Carlsbad’s Tourism Policies and Program Strategy. (on file in the
3. Strategy Appendices A - C: Tourism Impact Assessment , Tourism Survey Results
and Toursim Promotions & Visitor Information Survey Results (on file in the City
Clerk’s Off ice)
City Clerk’s Office)
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CITY COUNCIL RESOLUTION NO. 2o02-206
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, ADOPTING THE CITY OF CARLSBAD’S TOURISM POLICIES
AND PROGRAM STRATEGY.
WHEREAS, as one of the City Council goals for 1999-2000, the City of Carlsbad completed an
Lssessment of the impacts on, and needs of, tourists in the City of Carlsbad as related to existing and
xojected service needs, projected development needs, costmenefit analysis, parking and other related
;ervices or facilities; and
WHEREAS, the City of Carlsbad completed the Tourism Impact Assessment in 2000; and,
WHEREAS, as one of the City Council goals for 2000-2001, the City of Carlsbad conducted a
;urvey in 2001 to determine tourist expenditure habits, lodging locations, visit characteristics, attitudes
ibout Carlsbad and needs for services and facilities, and to determine the shared habits and needs of
-esidents of Carlsbad in the area of tourist-related services and/or facilities; and
WHEREAS, based on the findings of the Tourism Impact Assessment and the TouristResident
;urveys, a determination has been made that a strategy document is needed to summarize the City’s
:xisting policies or policy statements which provide support for the addition or enhancement of tourist-
xiented facilities, services and/or activities within the City of Carlsbad; and
WHEREAS, a report has been prepared entitled “City of Carlsbad - Tourism Policies and
Program Strategy” for review and approval by the City Council as the City’s official statement on tourist
x leisure-related programs and/or activities.
NOW, THEREFORE BE IT HEREBY RESOLVED as follows:
1. That the above recitations are true and correct.
2. That the City Council hereby adopts the document entitled “City of Carlsbad - Tourism
Policies and Program Strategy” as its official statement on tourist or leisure-related programs
and/or activities, and hereby authorizes the City Manager to implement the recommended
programs as set forth within said document for the calendar year period 2002 to 2006.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of
Carlsbad, California, held on the day of ,2002, by the following vote,
to wit:
AYES:
NOES:
ABSENT:
ABSTAIN
ITTEST:
CLAUDE A. LEWIS, Mayor
LORRAINE M. WOOD, City Clerk
TOURISPI PoI1c1Es
AND PROGRAM
STRATEGY
CITY OF CARLSBAD
TOURISM POLICIES AND PROGRAM STRATEGY
SECTION I - INTRODUCTION
In response to one of the City Council Goals for 1999-2000, a staff team worked with a private
consultant (Economic Research Associates) to complete an assessment of the impacts on, and
needs of, tourists in the City of Carlsbad as related to existing and projected service needs,
projected development needs, codbenefit analysis, parking and other related services or
facilities. The final assessment report was completed and submitted to the City Council for
review in June/July, 2000. In the subject report, Economic Research Associates made several
recommendations based upon the Tourism Impact Assessment. One of the key recommendations
was that the City of Carlsbad should prepare a Tourism Master Plan or Tourism Strategy to
formulate 1) policies and quality standards; 2) coordinate tourism marketing, development,
infrastructure, and service provision efforts; 3) establish investment priorities, and 4) enhance
Carlsbad’s brand name in the tourism market. A summary of the general findings of the
Assessment are provided within this report. A copy of the complete Tourism Impact Assessment
is provided as Appendix A to this report.
Before proceeding with a Tourism Master Plan or Tourism Strategy, the Consultant and staff
decided it would be appropriate to first complete a survey to determine tourist expenditure
habits, lodging locations, visit characteristics, attitudes about Carlsbad and needs for services and
facilities. Staff also wanted to assess the shared habits and needs of residents of Carlsbad in the
area of tourist-related services andor facilities. Therefore, Economic Research Associates with
assistance from SBFU Survey Lab conducted the desired survey for the City of Carlsbad. A
comprehensive report on the findings of this survey was completed and submitted for review in
January 2002. A summary of the survey findings is provided within this report. A copy of the
complete report on the surveys is provided as Appendix B to this report.
Based on the findings of the Tourism Impact Assessment and
the noted surveys, staff has determined that a Tourism Master
Plan does not appear to be necessary. The City has a number
of existing policy statements which would adequately address
implementation actions which will continue to support the
addition or enhancement of tourist-oriented facilities,
services and/or activities within the City of Carlsbad. We
believe that it would be best to simply summarize these
various policies/programs within one document and then include any additional actions which
may be beneficial to the noted efforts. As a result of staffs analysis, this report has been
prepared and entitled “City of Carlsbad - Tourism Policy and Programs Strategy”. This
document provides information on the key findings of the Tourism Impact Assessment and the
Tourist/Resident Surveys as noted above as well as a comprehensive statement of all of the
existing policies the City has adopted which address tourism and tourist-related activities. Staff
has also incorporated a few additional policy and/or recommended actions/programs to better
coordinate tourism marketing, development, inkastructure, and service provision efforts with
Carlsbad.
Page 2
SECTION I1 - CARLSBAD AS A TOURIST DESTINATION
As indicated in the Tourism Impact Assessment conducted by Economic Research Associates,
Carlsbad has evolved from a relatively small tourist destination to a major leisure destination in
recent years. The opening of the Four Seasons Resort at Aviara in 1997 and the LEGOLAND
Theme Park in 1999, combined with the older tourism destinations such as La Costa Spa and
Resort, have created a relatively large critical mass of tourism activity. Carlsbad’s list of
attractions is diverse and include: resort hotels with healthkpa facilities, the natural environment
such as the beaches and lagoons, special events, the flower fields, Carlsbad Company Stores, and
the Carlsbad Village Area. Carlsbad is centrallv located with easv access from San Dieno and
The combined overnight and day-trip market is an estimated 2.38 million. The size of Carlsbad’s
overnight visitor market corresponds to approximately 6 percent of the total annual overnight
visitation to San Diego County as of 1999. Economic Research Associates has projected that the
total annual Carlsbad visitor market by 2010 will be 3,088,000. Carlsbad’s current tourism is
seasonal with a peak in the spring (MarcWSpring Break) and the highest visitation during the
summer months (July/August). December and January are considered the off-peak season, with
the lowest overall visitation for both Carlsbad hotels and attractions. However, it is important to
note that Carlsbad appears to actually have a relatively stable level of tourism throughout the
year when compared to other markets.
In the 1999 study, it was estimated that tourists to
Carlsbad spend approximately $206 million
annually in the City, of which Overnight visitors
generate 60 percent and day-visitors to
LEGOLAND generate 40 percent. Tourism to
Carlsbad generates an estimated $10.5 million in
annual revenues to the City. Transient Occupancy
Taxes comprise approximately 71 percent of
those revenues. Based on a conservative estimate,
TOURISM = $206 million I i QI Day Vistitors
Legoland
.Overnight
Page 3 8
annual fiscal costs associated with tourism is approximately $4.6 million, of which about 44
percent is estimated to be associated with Public Safety and 20 percent with Public Works.
In summary, Carlsbad has become a major tourist destination over the past few years. The
Tourism Impact Assessment was completed in 2000 to determine whether or not the benefits of
tourism outweighed the costs. The completion of the noted Assessment provides the facts to
support that tourism has, and will continue to have, a positive impact financially on the City and
that this benefit outweighed the cost by nearly $6 million per year (during the study year) when
consideration was given to all of the various revenue sources (including transient occupancy tax,
sales tax and property tax).
Page 4
SECTION I11 - TOURIST AND RESIRENT SURVEY FINDINGS
In a survey completed by Social and Behavioral Research Institute (SBRI) in 2001, the findings
indicate that from an overall standpoint both tourists and residents are similar in their opinions
on the adequacy and quality of attractions and leisure activities offered within Carlsbad.
Generally, tourist and residents indicated that they are very satisfied with the quality and level of
existing tourist or leisure-oriented services
and/or attractions within the City. Specifically,
one of the notable indications was that Carlsbad
Village is a popular and frequently visited
location among residents and well liked by
tourists. Based on the survey responses, the
Village Area is actually frequented more often
than the Mall or Carlsbad Company Stores. In
addition, the beach was cited as the characteristic
people like most about Carlsbad as a place for
recreation and entertainment, followed by the
“Village Atmosphere” and “Climate”.
From a demographic standpoint, the survey results indicate the following differences in the
various visitors:
The summer visitors are primarily families with children looking for active entertainment in
family-oriented activities and programs. The winter visitors are primarily more senior
households that are coming to Carlsbad simply to enjoy the weather and are more leisure or
passive in their approach to tourist-oriented activities.
With an intended goal of increasing or enhancing the opportunities provided within Carlsbad for
tourist or leisure activities and perhaps to ultimately increase the attractions/services provided,
questions were included within the survey to ascertain information on what actions Carlsbad
could take to enhance the experience of tourists and/or improve the quality of life for residents.
As a result of the survey responses, the following recommendations were made by Economic
Research Associates within the survey report:
Page 5
Carlsbad Village should be linked to the oceanfront
through urban design, land uses and marketing to
enhance the attraction power of the Village and the
oceanfront.
Dining, shopping and entertainment attractions
should be added to the Village without diminishing
its comfortable scale to increase its popularity.
Residents go to the movies much more than they go to the movies in Carlsbad, implying that they
frequently leave the city to see movies. Therefore, there is an opportunity to capture a higher share
of movie theater visits by enhancing existing facilities or providing new facilities.
Traffic circulation should be monitored and addressed in the City’s leisure zones.
Residents cited golf, performing arts and aquatics most often as desired new leisure activities. It is
recommended that the City pursue expansion of theater and dining opportunities at existing
locations rather than creating new locations.
Family activities and dining are important additions.
Top choice for a new restaurant among both residents and tourists was a seafood restaurant.
Steakhouse, culturaVethnic, family style and Italian were also in the top five mentioned. The City
should consider encouraging the development of a quality seafood restaurant in an oceanfront
location.
Out-of-Town guests who are staying with friends are a potentially large and often overlooked
source of tourists. The City should consider a marketing campaign to the region’s residents about
the activities available to tourists in Carlsbad.
The percentage of visitors surveyed who were with organized groups was low. An opportunity
may exist to increase Carlsbad’s penetration of the group market.
In summary, the survey findings indicate that overall both tourists and
residents seem to be fairly pleased with the environment and tourist- or
leisure-oriented activities offered within Carlsbad. As noted above, there
are some areas that can be enhanced to improve the overall tourist
experience andor enhance the quality of life for residents. It is important
to note that there seemed to be general support for enhancing existing
tourist-oriented or entertainment areas rather than creating new,
centralized entertainment areas within the City. For example, it was noted that additional dining, shopping
or entertainment activities could be added to the Village area to increase its popularity. In addition, golf,
aquatics and performing arts were the leisure activities most commonly identified as desired additional
activities for existing as well as new areas. From a promotions standpoint, the two markets which appear
to be overlooked in Carlsbad are 1) the out-of-town guests of residents and regional residents, and 2)
organized groups. These are population areas that are recommended for more focus for marketing
purposes. As noted previously, the full report on the survey responses is provided as Appendix B to this
report for further details.
Page 6
SECTION IV - TOURISM MARKETING EFFORTS SURVEY FINDINGS
For general information purposes, staff conducted an informal survey of eleven (1 1) California coastal
cities that are popular tourist destinations to determine their practices as related to the funding of
marketing efforts and the provision of visitor information services. The cities ranged in size from the
small Cannel, with a population of 4,081, to the larger Huntington Beach, with a population of
approximately 200,000. Staff found that there is a wide variation in the amount of city funds allocated for
tourism marketing purposes and the organizations providing visitor information services. The following
paragraph provides a general summary of the survey findings. A copy of the complete survey and the
responses is provided as Appendix C to this report.
Based on the subject survey, City allocations for tourism marketing related activities or visitor
information services ranged widely from $0 per capita (the lowest) in Dana Point to approximately $59
per capita (the highest) in Pismo Beach. Based upon the survey, the average expenditure on tourism
activities is approximately $17 per capita among the eleven cities surveyed by staff. Carlsbad currently
expends approximately $4.65 per capita for marketing and visitor information services. While these
figures are interesting, we need to be cautious in the use of these expenditure calculations for comparison
purposes. First, the cities varied widely in their size from 4,000 to 200,000. In addition, the total amount
of actual expenditures on marketing and visitor information services is difficult to determine due to the
fact that many resorts, hotels, attractions and other facilities often spend a considerable amount of their
own private funding on marketing their facilities which in turn also markets the city in which these
facilities are located. For example, in Carlsbad the amount of funding expended for programs provided by
CONVIS appears to be more than adequate in light of the fact that many of the organizations within the
Carlsbad tourism industry have their individual strategies and marketing plans and expend considerable
dollars to promote their facilities/attractions as well as Carlsbad. Legoland, Aviara Four Seasons and La
Costa Spa and Resort spend the most by far in marketing Carlsbad as a tourism destination as they market
their own enterprises. In addition, the San Diego North County Conventions and Visitors Bureau
promotes Carlsbad together with other north county cities with no financial assistance from the City. This
is an additional resource which is not considered in the above noted per capita tourism expenditure. It is
simply important to note that cities vary on their expenditures based on their individual needs and desires
as related to tourism promotion and visitor information services.
According to staff findings, only one city (Laguna Beach) out of the eleven cities surveyed tied public
expenditures on tourist related programs/services to the level of Transient Occupancy Tax received during
a given year. Because it is unique, the following summary of Laguna Beach’s recent financing action is
provided for information purposes. Laguna Beach just recently formed a Tourist Promotion District. In
this District, the TOT is 12% (while it is 10% in the remainder of the City). A total of 50% of the
additional 2% assessment revenue will be paid to the Laguna Beach Visitors Bureau for promoting the
City and 50% to various arts and cultural organizations in the City. The amount provided will vary from
year to year depending upon the amount of Transient Occupancy Tax received by the City of Laguna
Beach. The remainder of the cities surveyed by staff simply allocated a flat fee or specified budget
amount to the operation of a visitor information center and/or various marketing programs during a given
year.
Based on the survey, Cities used a variety of organizations for tourism marketing, including City staff,
Chambers of Commerce, local Convention and Visitors Bureaus, and regional visitors bureaus. Six of the
Page 7
eleven cities used only regional, or a combination of regional and local organizations for their marketing
efforts and/or visitor information services. The remaining five cities used only local organizations, such as
CONVIS or Chamber of Commerce. The information indicates that there is no “one way” to provide
promotional programs or visitor information services within a community. As noted above, Appendix C
provides a complete summary of the survey findings for more detailed information.
Page 8
SECTION V -POLICIES AND PROGRAMS
The City of Carlsbad has a number of tourist or leisure-oriented programs and strategies already
existing within several different documents such as the General Plan, Village Redevelopment
Master Plan and Design Manual, and Economic Development Strategic Plan. In addition, the
City already provides tourist information and marketing by funding programs ($363,000)
offered by the Carlsbad Convention and Visitor’s Bureau. Based on the fact that the City has
several existing policy statements and programs which support the desired level of tourism or
leisure entertainment within the community and are adequate to enhance the tourist experience or
quality of life for residents, it does not appear that a need has been demonstrated to develop a
comprehensive Tourism Master Plan. However, it does appear to be necessary to develop a
single document which incorporates all of the existing policies and to make some
recommendations for additional activities and/or programs for implementation purposes.
Therefore, this Tourism Policies and Programs Strategy has been prepared for adoption by the
Carlsbad City Council as its official statement on tourist or leisure-related programs andor
activities. It incorporates all of the existing policies on tourism into one document and provides
recommendations on additional activities for the City to pursue to enhance the tourism
experience for visitors and the quality of life for residents.
The following section represents the Policies and Programs which have been previously adopted
by the City Council and are currently being implemented within the community. As noted above,
the following policies appear to be adequate for continued implementation within the community
and are, therefore, set forth for inclusion and adoption as part of this comprehensive Tourism
Policies and Programs Strategy.
GENERAL PLAN - LAND USE ELEMENT
Commercial Development
Encourage commercial recreation or tourist
destination facilities as long as they protect the
residential character of the community and the
opportunity of local residents to enjoy (in a safe,
attractive and convenient manner) the continued use
of the beach, local transportation, and parking
facilities.
P Orient travelhecreation commercial areas along the 1-5 corridor, in the Village, or near
resorthecreation areas.
k Provide a variety of commercial and tourist recreational activities in the Village,
especially close to the beach, in connection with special entertainment facilities,
restaurants and other uses that will foster the community concept.
Page 9
CARLSBAD VILLAGE REDEVELOPMENT PLAN AND DESIGN MANUAL
The Village Vision has several policy statements which support the encouragement of land uses,
programs and services which are intended to enhance both the tourism experience and the quality
of life for residents of Carlsbad. These statements include the following:
9 The Village has a distinct visual identity that makes it unique and a memorable place
with identifiable landmarks.
9 The Village accommodates a wide range of land uses and also serves as a specialty retail
center for the entire City of Carlsbad.
9 The Village has a strong civic character and provides a place for people to come to be a
part of important community events.
9 The Village is a comfortable and safe place to work, shop, visit and live.
Under one of the Goals to help make the “vision” a reality, several objectives support the subject
policy on tourist-oriented or leisure activities. First, one of the objectives states that efforts will
be made to attract additional tourist-serving uses to the Village. Second, an objective indicates
that an effort will be made to retain and increase uses serving Carlsbad residents. These
objectives are consistent with the suggestions provided by the tourists and residents in the survey
conducted by SBRI in 2001. Implementation of these objectives will also address many of the
recommendations made by Economic Research Associates.
The functional components of the Land Use Strategy for the Village Area highlights many policy
statements related to the support of land uses and attractions which focus on the visitor and
resident. These functional land use components are as follows:
9 Carlsbad Village Center (District 1) - Provide visitor accommodations to serve travelers
and a diversity of shops to serve Carlsbad residents, tourists and regional shoppers.
Entertainment uses are encouraged to attract weekend and nighttime activity to the
Village. A variety of eating establishments with both indoor and outdoor dining areas are
also encouraged in this area.
9 Freeway Commercial Area (District 3) - Provide for land uses such as service stations,
motels, restaurants and convenience stores to serve the Carlsbad residents and travelers.
9 Hispanic Mixed Use Area (District 5) - In this area of the Village, tourist and local
serving commercial uses are emphasized with encouragement for shops and restaurants
with a unique Hispanic flavor to enrich the visitor’s experience in the Village.
9 Tourism Support Area (District 9) - Provide accommodations to serve visitors to
Carlsbad’s ocean front and other travelers as well as tourist retail which serves the special
needs of travelers. A diversity of restaurants is encouraged in this area to serve residents
and visitors. The overall goal for this area is to continue to provide a wide mix of uses
with an emphasis upon facilities, goods and services to tourists and regional visitors
Page 10
traveling along the coast. High quality hotels, restaurants and retail shops are
emphasized in this area.
As noted, the Village Master Plan and Design Manual does include a variety of policies, goals
and objectives which support the recommendations to encourage more tourist-oriented andor
leisure-oriented facilities and services within the Village Area to increase its popularity as well
as to enhance the tourist experience and the quality of life for local residents.
ECONOMIC DEVELOPMENT STRATEGY
The following policy statements on tourist and resident services related to leisure activities are
included within the City’s adopted Economic Development Strategy:
P Promote recreational and tourist oriented land uses that serve visitors, employees of the
industrial corridor and business centers, as well as residents of the City.
P Encourage new economic development in the Village near transportation corridors to
attract additional tourist-oriented uses and to retain and increase resident-serving areas.
P Encourage and create joint marketing opportunities with outside groups such as the State
Department of Trade and Commerce, San Diego Economic Development Corporation,
Carlsbad Chamber of Commerce, Carlsbad Convention and Visitors Bureau, and other
groups involved in economic development an community promotion.
P Promote tourism and development of cultural, recreational and educational resources.
P Develop, implement and market new programs and policies that support business
attraction, expansion and retention, and tourism.
CARLSBAD CONVENTION AND VISITORS BUREAU CONTRACT
By supporting and financing the programs provided by Carlsbad Convention and Visitors
Bureau, the City has indicated its policy to directly support a marketing program and the
provision of visitor information services within Carlsbad. The
programs implemented as part of the Carlsbad CONVIS contract
are as follows:
P Manage and coordinate a marketing program that positions
Carlsbad as a prime destination in Southern California.
P Generate awareness of Carlsbad in those geographic regions
of the United States which provide the largest number of
visitors to Carlsbad each year. P Operate the Visitors Information Center.
P Provide familiarization tours/travel writer programs
P Promote local community events, including the San Diego Marathon, the Carlsbad 5000,
the Carlsbad Triatholon, and the La Costa Golf and Tennis events.
Page 11
P Develop private funding for advertising co-op programs, central reservation fees and
other participatory fees to support a full-time, aggressive tourism marketing program.
The above noted general policies together with the following Tourism Vision and Overarching
Goal Statements will serve to guide the Council, City Staff and the community in the
development and continuation of new goals, programs, funding and strategies that support and
enhance tourist and/or leisure related facilities and services.
Page 12
SECTION VI -FIVE YEAR ACTION PLAN
As part of this Tourism Policies and Programs Strategy, a five year action plan has been
developed for implementation purposes. This section will be updated every five years to
determine if new action steps may be required or desired to continue efforts to support the further
development of tourism or leisure entertainment activitieslservices within the City of Carlsbad.
The following goals are set forth as action items for consideration and/or implementation during
the period beginning in program calendar year 2002 and ending in program calendar year 2006.
One or more of these goals will be pursued during the noted period:
1. Review city codes, policies and/or fee structure, as appropriate, to
identify constraints and opportunities to provide for the more
effective attraction of new tourist-commercial, recreation and
entertainment uses to the City of Carlsbad for the enjoyment of
tourists and residents.
2. Complete one or more Specific Plans for properties within the South Carlsbad Coastal
Redevelopment Area and identify sites for the potential development of tourist or leisure
oriented facilities or services along the coast for the enjoyment of tourists and residents.
3. Pursue opportunities to develop one or more of the following leisure activitiedfacilities
within Carlsbad: additional movie theater(s), a performing arts center, an aquatics
program center, new dining opportunities (specifically a seafood restaurant or
steakhouse), and/or other activities which address the populations identified within the
touristlresident survey.
4. Participate in the effort to develop and implement a Historic 101 Marketing and
Promotions campaign which will focus on activities and facilities which can be easily
accessed while driving the old Highway 101 through Carlsbad and the other San Diego
County coastal cities.
5. Consider support of a marketing campaign to promote the various
tourist-oriented or leisure activities available in Carlsbad to the
region’s residents and/or out-of-town guests of Carlsbad
residents.
6. Consider support of a pilot promotions program to test the
market for group sales or activity packages for Carlsbad, and/or
to enhance “Carlsbad” as a brand name in the visitor industry.
7. Develop and/or revise a comprehensive Special Events policy which identifies the goals
and objectives of the City as to support for community events which result in large
gatherings of people and/or road closures within Carlsbad, and addresses the benefits that
must be identified for these events to receive approval.
Page 13
8. Consider a city-wide signage program which will allow for the identification of key
public facilities and/or landmarks within the City to facilitate easier access by both
tourists and residents.
9. Work with North County Transit District to research opportunities
for enhancing public transportation for both tourists and residents to
allow for easier access to facilities which provide tourist-oriented
leisure entertainment.
Page 14
SECTION VI1 - STRATEGY SUMMARY
Tourism is an important industry within the State of California, and it is quickly becoming a key
industry for Carlsbad. As noted within this Strategy, Carlsbad has evolved from a relatively
small tourist destination to a major leisure destination in recent years. The goal for completing
the Tourism Impact Assessment and the subsequent touristhesident surveys was to determine the
costs and benefits of tourism in Carlsbad and to identify those actions which will enhance the
tourist experience and the quality of life for residents. The Assessment results indicated that
tourism does have a positive financial impact on the community and is desirable from an
industry standpoint. The populations of tourists identified in the survey indicate that the City
needs to combine different kinds of tourism activities and services to continue to produce
successful results. It is also important to consider the benefit to residents in any efforts to
encourage or facilitate the development of additional tourist-oriented or leisure activities.
This strategy summarizes the findings of the various studies and surveys completed to date as
related to tourism in Carlsbad. It also combines all of the existing policies the City has adopted in
various other documents to address tourism into a single document. It provides a five year action
plan which is based on the assumption that the City wants to continue to enhance the tourism
industry within Carlsbad and wants to provide appropriate activities which will be enjoyed by
both tourists as well as residents within the community.
Page 15
EXHIBIT 3
APPENDICES A-C
CITY OF CARLSBAD
TOURISM POLICIES AND PROGRAM STRATEGY
(ON FILE IN CITY CLERK’S OFFICE)
APPENDIX A
CARLSBAD TOURISM IMPACT ASSESSMENT
Economics Research Associates
CITY OF CARLSBAD
..
TOURISM IMPACT ,. . STUDY
.. .~ . . .
,.,. ,
FINAL REPORT
JUNE 2000
THE CITY OF CARLSBAD
Pnpred iw
Carkbad, California
JUNE 2,2000
PrrP.d by
ECONOMICS RESEARCH AssocIATES
San Diego and Lm Angeles, California
Project No. 13484
.....
&!2iQn
I
I1
111
IV
V
VI
VI1
VI11
DRAFT
TABLE OF CO.NTENTS
INTRODUCTION AND SUMMARY FINDINGS .............................
Summary Findings ...................................................................................
Adequacy of Tourism Facdlties ...............................................................
CARLSBAD TOURISM POLICIES ..................................................
City of Carlsbad Economic Development Strategic Plan (1996-2000) ..
Village Redevelopment Master Plan .......................................................
Summary .................................................................................................
CARLSBAD TOURISM ORGANIZATIONS ....................................
Carlsbad Convention and Visitors Bureau (ConVis) ...............................
Carlsbad Chamber of Commerce .............................................................
Carlsbad and North County Hospitality Industry
San Diego North Convention and Visitors Bureau
Summary ..................................................................................................
CARLSBAD A'ITRATIONS INVENTORY .......................................
Selected Carlsbad Attractions ..................................................................
Selected Carlsbad Special Events ............................................................
Selected Major Resort Properties ............................................................
Carlsbad's Tourist Dlstncts
Planned Developments ............................................................................
CARLSBAD'S TOURISM MARKET CHARACTERISTICS .........
Southern California Tourism Market .......................................................
North San Diego County .........................................................................
Carlsbad Tourism Characteristics ............................................................
Selected Market Interviews .....................................................................
CURRENT AND FORECASTED TOURISM VISITATION ...........
Current Visitation to Carlsbad ................................................................
Projected Tourism Growth .....................................................................
Expansion of Hotel Capacity and Attractions ........................................
Estimated Future Growth of Carlsbad Tourism ......................................
Tourism Seasonality ................................................................................
Design-Day Visitation ............................................................................
FISCAL IMPACTS OF TOURISM .....................................................
Fiscal Revenues .......................................................................................
Net Fiscal Impact
Fiscal Expenditures
RERCOMMENDATIONS ....................................................................
Tourism Benefits .....................................................................................
Adequacy of Tourism Facilities
Potential Costs
Summary Recommendations ...................................................................
Tourist Survey .........................................................................................
...
.................................. ....................................
.. ......................................................................
.................................................................................. .....................................................................................
......................................................................................... ...............................................................
......l. .....................
m
I- 1
I- 1
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11- 1
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v- 1 v- 1
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TabkADJ
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v- 1
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VI- 7
DRAFT
LIST OF TABLES, EXHIBITS, AND MAPS
Ha ..............................
€la&%
Projected Carlsbad Tourism Market (2000-2010) ................................... I- 4
Estimated Design Day and Peak-in-Grounds Visitation in Terms of
Visitor Days for the city of Carlsbad (2000-2010) .................................. I- 5
City of Carlsbad’s Economic Development Areas ................................. 11- 2
Overview of Attractions Inventory Within the City of Carlsbad ............ IV- 2
Overview of Selected Annual Special Events (RecreationLeisure-Oriented)
Within the City of Carlsbad ..................................................................... IV- 5
Average Hotel Room Occupancy Rates and Daily Room Rates
for Carlsbad and San Diego County (1998-1999) ................................... IV-10
Overview of Monthly Traffic Volume at McClellan-Palomar Airport
(1992-1999) ............................................................................................ V- 8
General Fund Revenues by Category for city of Carlsbad
(1995-1999) ............................................................................................. v- 9
TOT Revenue Districts by Selected Hotel Group Categories for
City of Carlsbad (1993-1999) .................................................................. v-10
Overview of Coastal Southern California Visitor Markets (1999) .......... v-12
Estimated Overnight Visitor Market to the City of Carlsbad (1999) ...... VI- I
Total US Travel Volume in Million Person Trips (1988-1999) .............. VI- 3
Overview of Planned and Proposed Developments/Attractions/Events
Within the City of Carlsbad (2000-2003) ................................................ VI- 5
Projected Carlsbad Tourism Market (2OOO-2010) ................................... VI- 4
Indicators of Tourism Visitation Within the City of Carlsbad (1999) ..... VI- 6
Estimated Seasonality of Tourism to Carlsbad (1999) ............................ VI- 7
Estimated Design Day and Peak-in-Grounds Visitation in Terms of
Visitor Days for the City of Carlsbad (2000-2010) ................................. VI- 8
..... .....
,._?:, ...... i: . .sc. a
'.., . i
lhtkbb
VII- 1
VII- 2
VII- 3
VII- 4
VII- 5
VII- 6
VII- 7
VII- 8
VII- 9
I- 1
I- 2
v- 1
v- 2
v- 3
DRAFT
LIST OF TABLES. EXHIBITS. AND MAPS
(Continued)
Estimated Annual Tourist Expenditures in Carlsbad (1999) ...................
Estimated Annual fiscal Revenues froln Tourist Expenditures (1999) ...
Estimated Annual Fiscal Revenues from Tourist-Related Property
Taxes (1999) ............................................................................................
Other Revenue Allocation Ratios ............................................................
Miscellaneous Revenue Inputs ................................................................
Estimated Total Annual Fiscal Revenues from Tourism (1999) .............
Expenditure Allocation Ratios .................................................................
Estimated Expenditure Factors ................................................................
Estimated Net Fiscal Impact from Tourism (1999) .................................
.................... .
VII- 4
VII- 5
VII- 6
VII- 7
VII- 8
VII- 9
VII-10
VII-11
VII-12
Estimated Distribution of Tourist Expenditures ...................................... I- 6
Distribution of Fiscal Revenue ................................................................ I- 6
San Diego Visitor Age Distribution (Head of Household) ...................... v- 2
San Diego Visitor Household Income Distribution ................................. v- 2
San Diego Visitor Expenditure Distribution (Total Trip Per Person
Spending) ................................................................................................. v- 3
v- 4 Comparative Overview of TOT Revenues for Carlsbad and
VI- 1 Seasonality of Tourism to Carlsbad and San Diego ................................ VI- 1
VII- 1 Estimated Distribution of Tourist Expenditures ...................................... VII- 1
VII- 2 Distribution of fiscal Revenue ................................................................. VII- 2
North County (1998-1999) ...................................................................... v-11
.
Map 1 Carlsbad's Lodging, Attractions and Tourism Industry .......................... 1v-12
hnomics Research Asaodates Tourism lmpacr Sfudy - Ciry of Carhbad, s
ERA Project No . 13484
ouhem California
Rge V
Section I INTRODUCTION AND
SUMMARY FINDINGS
The City of Carlsbad retained Economics Research Associates (ERA) to analyze Carlsbad's
tourism industry and its fiscal impact to the City.
plus all day visitors to LEGOLAND who are not Carlsbad residents.
For the purposes of this study, the City of Carlsbad has defined tourism as all overnight visitors
to the body of the report for a more thorough discussion of tourism in Carlsbad.
This section presents a summary of the reports major findings and recommendations. Please refer
While the City of Carlsbad has adopted plans that address tourism within the context of other
initiatives, the City does not have an adopted tourism policy or master plan specifically. The
Economic Development Strategic Plan implies that the City should have a tourism policy to
which is fundamental to the City's overall economic development strategy.
help respond to the impacts that tourism generate, and to enhance Carlsbad's quality-of-life,
Several private organizations exist that promote tourism in Carlsbad. The City helps support
some of the non-profit organizations, such as the Carlsbad Convention and Visitors Bureau.
ConVis enters inquiries and tracks conversions to group sales, but currently does not have a
formalized mechanism for tracking conversions to general visits The private sector tourism
organizations, such as LEGOLAND and the resort hotels, spend the most by far in marketing
Carlsbad as a tourism destination as they market their own enterprises.
Carlsbad has evolved from a relatively small tourist destination in the early 1990s. Other
than the famous La Costa Spa and Resort, which opened in 1965, Carlsbad's other tourism
offerings were smaller hotels and beach villas. Carlsbad has become a major leisure
destination with the opening of the Four Seasons Resort Aviara in 1997 and the LEGOLAND
California theme park in 1999. These new developments in the 1990s, combined with
activity.
Carlsbad's older tourism destinations, have created a relatively large critical mass of tourism
Carlsbad's attractions base is becoming increasingly diverse and incorporates the following
components:
b Resort hotels with healthhpa facilities;
P Carlsbad's coastal natural environments (nature parks), the beaches;
P Specific special events (golf and tennis tournaments, antique shows, street fairs,
P Visitor attractions and theme parks (LEGOLAND California, Flower Fields, others);
b Shopping and restaurants (Carlsbad Company Stores, Carlsbad Village)
marathon and 5k races);
Eeonomin Research Assodates ERA Pmjecl No. 13484
Tourism Economiclmpoa - City oJCarlsbOd, Southern California 1.1
Approximately 1,400 additional hotel rooms are planned or proposed in Carlsbad; five of the
seven hotel projects are limited service hotels.
Representatives of the Carlsbad tourism industry that were interviewed identified the
following key target markets for Carlsbad:
b Short-break visitors (resorts, spa, golf, etc.)
D Southern California day-trip visitors
b Conferencdcorporate hospitality
D International visitors
Several key themes emerged by those interviewed regarding Carlsbad's identity, image and
tourism product:
D Nature -Flower Fields (major commercial flower-growing center) and nature trails
b Golf - championship courses (golf manufacturer capital of the world)
D Beaches (7 miles of beaches)
D Small TownNillage-like Atmosphere - Carlsbad Village
b Educational Family Entertainment - LEGOLAND California (Children's Museum)
D Resorts - La Costa Spa and Resort, Four Seasons Resort Aviara, Grand Pacific
Palisades
D Health and Fitness - spa (Alt Karlsbad), mineral water, Carlsbad 5K, San Diego
Marathon
The interviewees identified the following pros (strengths) of Carlsbad's current tourism
product:
D Small-town feel ("smallness"), tranquility and life-style (affluence of City)
D Location (easy access from San Diego/Orange County via 1-5) and the beaches
b Attractions mix (Flower Fields, LEGOLAND) and being part of the North County
region
D Two major resorts and new quality hotelshime-share development
D Special events calendar includes several major popular events (San Diego Marathon,
Andersen Consulting Match Play, Tennis Classic, Carlsbad 5K)
The interviewees identified the following cons (weaknesses) of Carlsbad's current tourism
product:
b The overall marketing of Carlsbad as a destination (limited name recognition - the
need to take both a local and regional approach towards creating a brand name)
Emnomics Research Associates Tourism Econorniclmpac1- Ciq OjCarIsbad, Southern CdVornh ERA hjed No. 13484 1-2
9 Signage problems throughout the City (difficult for visitors to find their way around)
-in addition, coordinated signage would facilitate the creation of a unified image and
destination for Carlsbad
9 Few major attractions in Carlsbad other than LEGOLAND (seasonal nature of the
9 Lack of waterfront restaurants (upscale dining) and limited nighttime entertainment
9 Limited opening hours in Carlsbad Village is a problem (most stores are closed after
9 Traffic bottlenecks in Carlsbad Village during the peak season and special events
> Parking situation in the Village area
> Distinct quality differences between the “old” and “new” lodging properties and
Flower Fields)
opportunities (lack of theater and show venues compared to adjacent cities)
5:OOpm)
commercial developments
The following opinions were expressed regarding the adequacy of tourism-serving facilities
and infrastructure:
9 Major resorts were pleased with the current road system leading up to their
properties, and the circulation system’s sufficient capacity to handle traffic flow
(Aviara Parkway, Poinsettia Blvd. and La Costa Avenue). Some tourism
representatives interviewed felt that traffic on Palomar Airport Rd. is congested
during peak hours and would benefit from an expansion. Some noted that the
Carlsbad Village area tends to become congested during the peak tourism season and
during special events.
9 Some representatives stated that public transport needs to be more visible in Carlsbad
and that shuttle and taxi services are inadequate (limited schedule and long waiting
time).
> Some felt that shuttle service should be improved between the retail, hotel and
attractions nodes connecting Carlsbad Village and the beach with Carlsbad Ranch
(Flower Fields, Company Stores, LEGOLAND, Grand Pacific Resorts), and area
hotelshesorts.
9 Some hotel representatives indicated that Carlsbad is too dependent on San Diego
Lindbergh Field Airport versus McClellan-Palomar Airport and that the City would
benefit in the long term from expanding the airport facilities.
9 Several representatives indicated the possibility of evaluating the potential of a
dedicated high-quality medium-sized free-standing conference center in Carlsbad.
9 Some hotels representatives indicated that their guests prefer to shop in Del Mar, La
Jolla and San Diego due to their broader mix of retail and their longer operating
hours.
9 Some cautioned that development trend of limited service hotels is not good for the
overall quality and appeal of Carlsbad as a destination. Several attractions, special
event organizers and tourism organizations indicated that future development should
focus on recognized brand-name 3-star hotel chains with established marketing
networks and reservation systems (such as Hyatt, Sheraton, and others). At the same
time, there is concern among some hoteliers regarding the risk of overbuilding the
market with too many new hotels.
9 Some felt that recreational opportunities should be increased, such as more high
quality golf-courses.
* The combined overnight and day-trip market is an estimated 2.38 million. The size of
Carlsbad's overnight visitor market corresponds to approximately 6 percent of the total
annual overnight visitation to San Diego County in 1999.
Based on estimated future growth rates, ERA has projected the following ten-year forecast
for Carlsbad tourism:
Table 1-1
Projected Carlsbad Tourism Market (2000-2010)
2000 2005 2010
Total Annual Carlsbad Visitor Market' 2,442,000 2,797,000 3,088,000
Total Overnight Visitor Days 2.271.000 2.601.000 2,872,000 .. Total Day-Trip Visitor Days 1,610,000 1,844,000 2,036,000
Total Annual Carlsbad Visitor Days' 3,881,000 4,445,000 4,908,000
.. ..
Using an average growth rate of 2.75 percent between 2000 and 2005, and 2.0 percent
Including total overnight visitor days and day-trip visitors between 2005 and 2010.
Source: Economics Research Associates
Carlsbad's tourism is seasonal with a peak in spring (March) and the highest visitation during
with the lowest overall visitation for both Carlsbad hotels and attractions. Still, tourism to
the summer months (July/August). December and January are considered the off-peak season,
Carlsbad appears to be relatively stable throughout the year compared to many other markets.
The preliminary estimated design-day, a typical busy weekend day during the peak season,
for the City of Carlsbad is shown as follows:
lzh
ERA Pmjecl No. l3484
ourh Economiclmprrcr - Ciry ofcar bad, Southern Californh
1-4
.,".,"~..."..I",,I..." ...,..
Table 1-2
Estimated Design Day and Peak-in-Grounds Visitation in Terms of Visitor Days
for the City of Carlsbad (2000-2010)
2000 2005 2010
Estimated Total Annual Carlsbad Visitor-Day Market 3,881,000 4,445,000 4,908,000
Peak Month Visitation (@10.9% of total) 423,030 484,510 534,970
Weekly Visitation (@23.3% of peak month) 98,570 112,890 124,650
Design Day Visitation (@25% of a week) 24,640 28,220 31,160
Peak-in-City Visitation (@go% of design-day) 22,180 25,400 28,040
Source: Economics Research Associates
The estimated almost 25,000 design-day visitors to Carlsbad is equivalent to about a 32
percent increase of Carlsbad's population. It should be noted that LEGOLAND California
accounts for a significant majority of the estimated design-day visitation.
While the design-day visitors would increase the City's population, the design-day population
increase would occur when the worker population is much less since the design-day occurs
during the weekend. Most of the City's infrastructure system, especially roads, therefore,
should have the surplus capacity during the weekends to accommodate design-day tourist
activity. There may be exceptions, however, at key commercial-retail locations that attract a
large volume of weekend resident-shoppers unless the traffic impacts are mitigated.
The largest special events tend to fall outside the peak summer tourism season and are spread
over several days (with the exception of the La Costa Tennis Classic). Also, the vast majority
of special events primarily attract local residents and day-trip visitors from the regional San
significantly.
Diego County market. Therefore, the special events should not affect design-day visitation
It is estimated that tourists to Carlsbad spend approximately $206 million annually in the city,
of which overnight visitors generate 60 percent and day-visitors to LEGOLAND generate 40
percent. The estimated distribution by expenditure category is shown in Exhibit 1-1.
hmorniu Research Assodates
ERA PmJeu No. 13484 Tourism Economic Impact - Ciq of Carlstnd, Southern Califonin 1-5
Entertainment/
Attractions
20%
ESTIMATED DISTRIBUTION
Exhibit 1-1
OF
TOURIST EXPENDITURES
Lodging
37%
Transport
4%
Retail
18%
Food &
Beverage
21%
Tourism to Carlsbad generates an estimated $10.5 million in annual fiscal revenues to the
City. Transient-occupancy taxes comprise approximately 71 percent of these revenues, as
illustrated in Exhibit 1-2.
DISTRIBUTION OF FISCAL REVENUE
Exhibit 1-2
Propefiy Taxes
12% \
Sales Taxes
8% c
Based on conservative factors, estimated annual fiscal costs associated with tourism is
approximately $4.6 million, of which 44 percent is associated with public safety and 20
percent is associated with public works.
The estimated annual net fiscal impact to the City of Carlsbad's General Fund is as follows:
Annual Fiscal Revenues
Annual Fiscal Costs
Net Fiscal Impact
$10,545,000
$ 5,906,000
s-LmU!Q
The estimated ratio of fiscal revenues to costs is 2.27/1.00
CY OF TO-
ERA has the following observations regarding the adequacy of Carlsbad's tourism facilities: . Based on interviews with representatives of Carlsbad's major attractions, resorts, and
possible exceptions are Palomar Airport Road during peak season, and possibly Carlsbad
hotels, the road and circulation system appears to be adequate in most cases. The
Village during certain special events. A focused traffic and parking analysis should be
conducted for these two areas. . Most tourists travel by car; however, there is very limited public transportation service
between Carlsbad's major tourist destinations, providing few alternatives, at competitive
rates, to using a car. The City should evaluate the cost effectiveness of optional strategies
for providing alternative forms of transportation to tourists within the City. . The signage program could be improved to facilitate tourists' ability to find a way to
Carlsbad several attractions, lodging, and shopping destinations. Thematic designs, the
use of public art, etc., can assist tourists and direct them to Carlsbad's several tourist
destinations. . Carlsbad has a pleasing image from the freeway, the route taken by most visitors to
Carlsbad, due to Carlsbad's topography, lagoons, and quality development. However, the
mix of development, uncoordinated site plans, and discordant architectural styles near
Palomar Airport Road east of 1-5, present a weak and cluttered image. The image
portrayed here is especially important given Palomar Airport Road's role as a major
access point for tourists to some of Carlsbad tourist destinations. . The number of planned and proposed hotel rooms in the City appears adequate to
accommodate projected tourism growth during the next 5- to 10-year period.
However, many of the hotels that are planned or proposed are limited service,
lower price point hotels. At the other extreme, Aviar and La Costa are exclusive
properties that are not affordable to most people. While a hotel feasibility study is
not within the scope of this study, it appears that Carlsbad's hotel offerings lack
moderate-priced, full-service, three-star hotels. . While it appears that Carlsbad has adequate restaurant and retail square footage to serve
the tourist market, primarily in Carlsbad Village and the Company Stores shopping
center, Carlsbad lacks restaurants and shopping environments with ocean views, and
should offer more quality sit-down restaurants outside of the destination resorts.
hnomln Researeh krsodstes Tourism Economic Impact - Ciq of Carisbad, Southern Cdfomio ERA Pmjea No. 13484 1-7
. Carlsbad may want to offer more night-time shopping and entertainment activities,
. Based on interviews with event organizers, it appears that Carlsbad provides adequate
particularly in Carlsbad Village.
facilities and security during special events in most cases, except for possibly parking
during certain special events such as the Village Faire. . Carlsbad should establish a management information system for monitoring the local
tourism industry's performance, and the effectiveness of Carlsbad's investments in
facilities and marketing. An important input to this system would be a regular, periodic
survey of tourists within Carlsbad. . To maximize the benefits of tourism and minimize its costs, ERA recommends that the
City of Carlsbad prepare a tourism master plan to formulate policies and quality
standards; coordinate tourism marketing, development, infrastructure, and service
provision efforts; establish investment priorities; and enhance Carlsbad's brand name in
the tourism market.
comprehensive, scientific survey of Carlsbad's tourists regarding their expenditure habits,
One of the first steps of the master plan process is to design and administer a
lodging locations, visit characteristics, origin and destinations, travel patterns, trip
purpose, group socio-economic characteristics, attitudes about Carlsbad, etc. This survey
with the peak summer season.
should be conducted over the year to compare how responses vary by season, beginning
.
CARLSBAD’S TOURISM POLICIES
Section II
Currently Carlsbad does not have a specific tourism policy; however, the City has a few plans and
policy documents that speak to tourism.
CITY OF CARLSBAD ECONOMIC DEVELOPMENTSTRATEGIC PLAN (1996-20oQl
The City of Carlsbad Economic Development Strategic Plan (1996-2000) was prepared in 1995.
According to the plan, the City’s economic vision is a Carlsbad that: “has a diverse and healthy economic
base which provides employment to the residents of Carlsbad, economic vitality to the community, and
the necessary revenues to support Ciy services.’’
The Economic Development Strategic Plan was developed to ensure consistency with several
integral plans and policies that have a direct impact on economic development activities. These include
Carlsbad’s General Plan; the Growth Management Plan; the 1994 Comprehensive Annual Financial
Report; the 1995-96 Operating and Capital Budget; and the City Council’s Five-Year Vision Statements
and 1995 Goals and Objectives.
The Economic Development Strategic Plan clarifies the City’s role in economic development,
and provides strategies for building relationships with other public agencies, business organizations, the
private sector, and the non-profit sector. As a result, partnerships have been created between the City of
Carlsbad and key players (Chamber/CEEC, State Public Utilities, SDEDC and real estate
brokers/developers) to support business attraction, retention and expansion locally.
The City’s economic development model is based on the principle that quality-of-life is the single
most important factor for influencing a community’s overall growth. According to the circular model
illustrated in the Plan, public policy preserves quality-of-life. Quality-of-life attracts business, residents,
tourists, and visitors, which, in turn, affect growth, demand, spending, public facilities, the environment,
public services, etc. These impacts create the need for public policy. One of the public policies called for
in the Plan is a tourism policy, which the City has not yet developed.
Focus Brmas
Focus Areas and they include:
The Plan identifies six areas of potential economic growth. These areas are termed Economic
The Industrial Corridor
Tourist Oriented Development
Transportation and Land Use Development
The Village/Redevelopment Area
Regional Commercial Development
Community Commercial Development
Table 11-1 below outlines the sub-categories for each Economic Development Areas’ focus:
Table 11-1
City of Carlsbad’s Economic Development Areas
I Corridar Tpurist Oriented Regional Commercial
Manufacturers AttractionsEvents Auto Dealerships
Bio-Industries ResortdGolf Major Retailers
Corporate Headquarters Hotels
Research and Development Motels
Telecommunications
McClellan-Palomar Airport Business to Business
Transit SystemLand-Use
Circulationflnfrastructure
Restaurants
Community Commercial Grocery Stores
Tourist Oriented Other Anchors
Source: City of Carlsbad Economic Development Strategic Plan (1996-2000)
Two of the economic focus areas - Tourist Oriented and Village Redevelopment Area - speak
directly to tourism. The Regional Commercial Development focus area mentions new forms of regional
centers, such as outlet centers, that may serve tourists as well as residents. The Transportation/Related
Land-Use focus area addresses infrastructure that affects tourism.
The Tourist Oriented focus area includes visitor attractions and commercial uses that serve the
transportation corridors, recreational, and higher amenity areas of the city. The Plan recommends that
travel and recreational needs of tourists, residents, and workers. Often such sites are located near major
tourist oriented uses such as motels and hotels should be “coordinated with compatible accessory uses, to
protect the surrounding properties, ensure traffic circulation and promote economically viable tourist
oriented areas of the City. ”
The Village focus area can trace its origin to tourism and the 188Os, when an underground
mineral spring was discovered. The new rail line between Los Angeles and San Diego allowed Carlsbad
to promote itself as a resort and spa destination. Now an adopted Redevelopment Project Area, the
Village is a mixture of commercial uses, restaurants, and services that cater to residents and tourists.
Housing and lodging is encouraged in specified locations. Tourist-serving facilities is a permitted land
use.
The Regional Commercial Development focus area does not address tourism specifically, but
residents.
does encourage regional commercial centers, including outlet centers, that cater to tourists as well as
The Transportation and Related Land Use focus area also does not address tourism specifically,
but does describe the importance of the McClellan-Palomar Airport as a “unique economic resource not
available in most communities. ” The Plan anticipates that more business and resort travelers will use the
McClellan-Palomar Airport to connect to the Los Angeles International Airport as air traffic congestion at
San Diego’s Lindbergh Field worsens.
component strategies that address the following topics:
The Economic Development Division’s Economic Development Strategic Plan has five
* Land Use and Infrastructure
Public Policy Development
Economic Resources Planning
Community Promotion and Marketing
Public Relations and Education
Within each component a strategic goal and series of action plans were established for the years
1996-2000, centering on the six identified Economic Focus Areas.
The Land Use and Infrastructure Strategy has the stated strategic goal to, “Develop and
implement land use and infrastructure strategies, consistent with the Ciry’s General Plan, which enhance
and promote economic development in Carlsbad. ” To help achieve this goal, the Strategy identifies the
following actions that specifically refer to tourism:
Promote economic development strategies for commercial, industrial, office and tourist-
oriented land uses.
Promote regional and tourist-oriented land uses that serve visitors, employees of the
industrial and business centers, as well as residents of the City.
Encourage new economic development in the Village near transportation corridors to attract
additional tourist-oriented uses and to retain and increase resident-serving uses.
While other actions are recommended that affect tourism, such as creating a distinct identity for
the Village and promoting alternative transportation modes, they do not mention tourism specifically.
The Community Promotion and Marketing Strategy has the stated strategic goal to, “Develop a
communi@ promotion and marketing plan that focuses on attracting desirable employment and revenue
generating businesses and industries to the City, and supports tourism. ” To help achieve this goal, the
Strategy identifies the following actions that specifically refer.to tourism:
Promote tourism and development of cultural, recreational and educational resources.
Develop, implement and market new programs that support business attraction, expansion and retention, and tourism.
The overall vision for the Village is to have a distinct visual identity that makes it a unique and
memorable place with high-quality, well-designed private development and public improvements. The
Village serves as a specialty retail center for the entire city and it portrays a strong civic character. Below
are summaries of key goals and objectives as outlined in the Village Master Plan:
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Establish Carlsbad Village as a quality shopping, working and living environment;
Improve the pedestrian and vehicular circulation in the Village area;
Stimulate property improvements and new development in the Village;
Improve the physical appearance of the Village area;
Provide signage that is supportive of commercial vitality and a unique Village image.
The functional components of the Carlsbad Village include the Carlsbad Village Center, the
Office Support Area, the Residential Support Area, the Hispanic Mixed Use Area, the Freeway
Commercial Area, and the Tourism Support Area. The Tourism Support Area includes hotels, time-share
condominiums, restaurants and shops to serve visitors to Carlsbad's oceanfront, and visitors along the
coastal highway in tourism-related developments that are lower intensity extensions of the Village.
As a part of the planning studies leading to the Village Master Plan, a number of specific sites
were studied to provide the basis for establishing appropriate development intensities, parking
requirements and design guidelines to achieve a Village scale and character. The following potential special tourist-related projects were identified:
Rail stationApecialty center (retail shops and restaurants, professional ofices and
commercial service shops).
Museum center (history museum, bed and breakfast and retail/restaurants).
Tourist hotel (100 t/- rooms, with retail and restaurants).
Reopening of Carlsbad Theatre.
Finally, the Village Master Plan emphasizes that the development of cultural facilities would add
greatly to the attractiveness of the Village as a destination for tourists and Carlsbad residents. Strong
support has been expressed for reopening the Carlsbad Theatre as a first run cinema and perhaps other
community uses, such as dramatic presentations, dance/music and other cultural activities.
SUMMARY
While the City of Carlsbad has adopted plans that address tourism within the context of .other
Development Strategic Plan implies that the City should have a tourism policy to help respond to the
initiatives, the City does not have an adopted tourism policy or master plan specifically. The Economic
impacts that tourism generate, and to enhance Carlsbad's quality-of-life, which is fundamental to the
City's overall economic development strategy.
Economics Research Assodates Tourism Impact Srvdy - Ciry of Corlstd, Sourhern Colifornia ERA Projecl No. 13484 11-4
CARLSBAD TOURISM ORGANIZATIONS Section III
Besides the City of Carlsbad, there are several private organizations that promote tourism in the
city, of which the Carlsbad Convention and Visitors Bureau is partially funded by the City. This section
describes these organizations and their tourism promotion efforts.
CONVENTION AND VISITORSBUREAUJV!
Since 1985, the Carlsbad Convention and Visitors Bureau (ConVis) has promoted Carlsbad as a
tourist destination. Although ConVis is an independent non-profit organization, the City of Carlsbad
provides funding and facilities for its operations at the Santa Fe Depot in Carlsbad Village. The total fee
to the City for the services performed by the ConVis is limited to a maximum budget of $357,000
annually, which supports a full-time staff of three and a part-time staff of four. The current contract ends
October 31, 2000. The new budget is $13,000 less than the bureau’s 1998-99 budget. The reduction is a
result of the completion of a CD-Rom marketing program that ConVis completed in 1999. ConVis plans
to use the multimedia program to promote the City at trade shows and to make it available to travel
agents, tour operators and corporate meeting planners. Nearly half of the ConVis’ budget this year, or
about $170,000, is devoted to advertising and marketing. According to the Western Association of
kind services in 1999.
Convention and Visitors Bureaus’ 1999 Budget Survey, ConVis received approximately $25,000 in in-
ConVis’ advertising, which reaches as far as some international markets, is mainly concentrated
in the southwestern United States. Most of ConVis’ advertising dollars go towards buying space in leisure
magazines circulated in that region. ConVis also advertises in corporate and meeting publications to
attract business travelers. ConVis hopes to better tap the Canadian market and to increase business
advertising in the new fiscal year. ConVis enters inquiries and tracks conversions to group sales, but
currently does not have a formalized mechanism for tracking conversions to general visits.
On a quarterly basis, ConVis provides the City Council with reports of its operations and
expenses, including a written description of ConVis’ activities for the quarter. ConVis prepares press
releases on a regular basis and submits articles to the Carlsbad Chamber Business Journal. ConVis also
report its activities at each meeting of the Carlsbad Village Business Association.
The following presents a summary of ConVis’ mission statement, objectives and goals:
“Manage a coordinated marketing program that positions Carlsbad as a prime tourist
destination in Southern California.
To generate awareness of Carlsbad in those regions which provide the largest number of visitors to Southern California. - Be the focalpoint of Carlsbad’s hospitality industry and work to enhance the City’s economy
by promoting Carlsbad as a site for vacations and meetings.
Emnomia Research Assodates
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Tourism Impocr Srudy - Cify of Corlsbad, Sourhcrn Californirr II1-1
Assist with thepromotion of a number of local community events.
Operate a “Visitor Information Center” in the Old Depot that is open seven days a week to
assist visitors to Carlsbad. ”
“To inform the different market segments; i.e., leisure, corporate, group and tour,
government and selected international markets about the types of properties and attractions
that are available in Carlsbad.
To educate and assist Carlsbad Marketing Partners on specific marketing opportunities.
Provide assistance with the promotion of large local events.
To create one stop information access for visitors and groups requiring information about
Carlsbad.
To help Carlsbad businesses and citizens understand the role of COWIS..”
“Identify the trade shows and publications to advertise in to cost effectively saturate each
market segment desired.
Operate a proactive Travel Writerprogram.
Stay abreast of tourism trends and issues by attending local state and regional tourism
conferences.
Maintain a close working relationship with the managers and sales representatives of
Carlsbad hotels to keep them advised of current trends and opportunities as well as learn
their opinions.
9 Make available to all the Carlsbad Marketing Partnerships the databases of associations,
marketing efforts.
corporations and government agencies that are developed during Carlsbad sales and
Maintain an efficient lead referral and response program that benefits local sales and
marketing representatives.
Play a leadership role in regional marketingprograms.
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9 Be the agency that organizations look to for advice and support when planning a local went.
Operate the visitor information center seven days a week.
Lay the groundwork for a Visitor Information Center in South Carlsbad.
Compile and maintain current information on events, establishments, and attractions in
Carlsbad.
Provide tourism input to other local issues, such as transportation.
Report activities to the ConVis Board of Directors, City Council, and other appropriate organizations in a timely eflcient manner.
On a consistent basis inform news media of significant accomplishments. ”
167,000 “hits” monthly. Other marketing tools include the publication of brochures such as: California’s
ConVis’ web-site is a popular and effective way to promote Carlsbad and reportedly receives
Newest Playground; Meeting Planner Guide; Dining Guide; German language brochure; Calendar of
Events; press-kits; and CD-Roms. ConVis also advertises in selected publications and participates in
selected travel shows. ConVis promotes Carlsbad in selected international markets such as Canada and in
Europe (Germany in particular). However, the majority of its marketing efforts are focused on the
southwestern US as the primary tourist feeder market for Carlsbad.
ConVis also participates in the Visitors Center Network (VCN) which was created with the
purpose to share information and plan cooperative training for volunteer and hont line staff at the visitor
centers located throughout San Diego County. The founding network consists of 12 visitor centers around
the county including: Balboa Park; Carlsbad; Chula Vista; Coronado; CCDC’s Downtown; Oceanside;
SD-IVIC; SD-East; SD-North; SD-Mission Bay; Travelers Aid Society and Tijuana ConVis. According
to ConVis, the 12 centers employ 64 full or part-time staff, utilize the services of 431 volunteers, serve an
estimated 2.5 million walk-in-visitors an answer just under 200,000 phone calls annually.
The key objectives of the visitor center network are summarized below:
To provide accurate “unbiased” information from enthusiastic, knowledgeable staff and
volunteers.
To provide the highest level of customer service ensuring that visitors will have an enjoyable,
quality visit.
To encourage visitation to all areas of San Diego.
To support the “customer-service” initiative-aimed exceeding residents and visitors
expectations on every level.
To increase perceived “value” of visitor centers and volunteer information specialists’.
Until 1997, the Carlsbad Chamber of Commerce also managed the Carlsbad Convention and
Visitors Bureau, which subsequently became an independent public agency under the supervision of the
City Council and City of Carlsbad.
The Chamber’s primary role is to facilitate and support business, commercial and industrial
development in Carlsbad. In addition, the Chamber handles visitor inquiries and directs specific requests
to the Carlsbad Convention and Visitors Bureau. Due to its central location within the Carlsbad Company
Stores, the Chamber serves the role of a visitor center, providing advice and brochures on local attractions
and hotels to visitors.
The Chamber’s web site actively promotes Carlsbad, with a dedicated visitor information section
that provides useful information on the City of Carlsbad, accommodations, restaurants, weather, tourist
attractions and special events. This web site links to the Carlsbad Convention and Visitors Bureau, North
County Convention and Visitors Bureau, among others. An estimated 27 percent of those that visited the
Chamber’s homepage on the internet in January 2000 (total of 3,660 home-page hits) viewed the visitor
information section, where “visitor accommodations” achieved the highest number of hits (40 percent of
the total).
Consulting Match Play golf tournament at La Costa. The Chamber works on a regional basis with other
The Chamber provides assistance in promoting annual special events such as the Andersen
chambers and tourism organizations and maintains a relatively good working relationship with the
Carlsbad Convention and Visitors Bureau and Carlsbad Village Business Association.
The San Diego North Convention and Visitors Bureau (SDNCVB) is located in Escondido and
serves the entire North San Diego County area including Carlsbad. Funding allocations for fiscal 1999/00
are $763,000 of which memberships and co-op promotions account for $103,000. Total in-kind services
average $525,000 and includes volunteers, meeting space, editorial and familiarization tours. The
SDNCVB has a membership base of over 200, comprising tourism businesses in the coastal, inland
valley, mountain and desert regions of North County. An estimated 40 percent of its membership is
located in the coastal areas. The Bureau has seven full-time staff and a twenty-member board. The
SDNCVB also operate a two-person direct corporate and meetings market sales office in Carlsbad.
The Bureau conducts an inquiry conversion study annually. It was determined in the latest study
that 72 percent of those inquiring at the SDNCVB have actually visited the San Diego North area. An
additional 61 percent plan to come within twelve months.
SDNCVB has begun a “branding” process to develop a strong visual identity for the San Diego
North region as a preferred destination with a marquee image. The SDNCVB is working in partnership
process of developing the San Diego North brand. The strategic intent is to develop San Diego North as a
with its board members and recently retained a corporate imagebranding consulting firm to assist in the
sub-brand to San Diego, which is one of Southern California’s strongest destination brands.
The complete role of the SDNCVB is visitor promotion. The Bureau represents tourism
businesses that generate the majority of their revenue from the leisure and small group markets. The small
group business is a niche market in this region of San Diego County.
Emmrnics Research Assodates Tourism Impocr Srudy - Ciry of Carlsbad, Sourhcrn Catifamia ERA Pmjea No. 13484 111-4
The SDNCVB has outlined specific sales and marketing goals/objectives, and its success and
accountability is fully tracked and documented to its members. Based on Bureau research, member input,
and industry trends, its sales focus in the year 2000 is on the following markets:
Corporate group and incentive (35%)
Association (25%)
Travel industry (20%)
SMERF (15%) - (Seniors, Military, Educational, Religious, Fraternal)
Local corporate (2.5%)
Government (2.5%)
The 2000 Marketing Plan contains specific and detailed strategies on how to achieve sales and
performance goals for each market. The SDNCVB tracks rooms, food and beverage, and meeting room
revenue for all definite group bookings that materialize on an annual basis. Future contracted bookings
are also tracked. In addition, the Bureau conducts pick-up reports that track occupancy and average daily
room rate (ADR) reports for its members.
The SDNCVB takes the approach that regional marketing is the most cost-effective way to
maximize the impact of promotional dollars, resulting in a larger overall benefit for the San Diego North region.
AD AND NOmH COUNTY HO-
Each of the organizations in Carlsbad’s tourism industry that were interviewed have their
individual strategies and marketing plans to achieve performance objectives and goals.
Several hotels work directly with local attractions to cross-promote their properties and some
offer package deals for visitors. Generally, there is a distinct difference between the “old” and “new”
properties in Carlsbad, where the branded commercially operated properties have a more cooperative and
regional marketing approach.
La Costa Spa and Resort was the first resort that opened in Carlsbad and has been one of the main
incubators of tourism growth during the last 35 years. La Costa generates highly valuable publicity for
Carlsbad through its special events, such as the Andersen Consulting Match Play and the Tennis Classic
tournament, with national and international media exposure.
The opening of the Four Seasons Reson Aviara in 1997 and LEGOLAND California in 1999
elevated Carlsbad’s position in the Southern California tourism market. LEGOLAND California opened
in March 1999 and spent an estimated $12-$14 million on pre-opening marketing and promotional
activities that showcased the theme park and Carlsbad. The 2000 marketing budget is estimated at $14
million. LEGOLAND has representatives on the boards of both the Carlsbad Convention and Visitors and
the San Diego North Convention and Visitors Bureau.
Many major hotels and attractions have representatives on the CCVB and SDNCVB. There was
a general consensus and expressed interest among those interviewed in developing a “brand name” for
Carlsbad as part of the San Diego North region. Such an effort would enhance the market value of
“Carlsbad” as a quality name and location for tourism and recreation. Examples of locations that have
developed their brand name include Telluride, Hilton Head, Maui, Vail, Santa Fe, Cape Cod, Cannel, etc.,
and many other locations. In addition, several emphasized the need for a proactive tourism organization
Economics Research Assoantes ERA hJKl No. 13484 Tourirm Impad Study - Cig o/Car&&d, Southern Califomirr
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within Carlsbad that can create a valuable and synergetic network between hotels, attractions, and other
tourist-related organizations. These efforts require public and private coordination and cooperation.
It was indicated that the SDNCVB has been effective in promoting the San Diego North region as
a whole and is having success with creating partnerships with the hotel and attractions industry.
SUMMARY
Several private organizations exist that promote tourism in Carlsbad. The City helps support the
Carlsbad Convention and Visitors Bureau. The private sector tourism organizations, such as
LEGOLAND and the resort hotels, spend the most by far in marketing Carlsbad as a tourism destination
as they market their own enterprises.
CARLSBAD ATTRACTIONS INVENTORY
Section IV
,, "..".,,,"*,l..l.l...l"l....l
Carlsbad has evolved from a relatively small tourist destination in the early 1990s. Other than the
famous La Costa Spa and Resort, which opened in 1965, Carlsbad's other tourism offerings were smaller
hotels and beach villas. Carlsbad has become a major leisure destination with the opening of the Four
Seasons Resort Aviara in 1997 and the LEGOLAND California theme park in 1999. These new
developments in the 199Os, combined with Carlsbad's older tourism destinations, have created a
relatively large critical mass of tourism activity.
Carlsbad's attractions base is becoming increasingly diverse and incorporates the following
components:
Resort hotels with health/spa facilities;
Carlsbad's coastal natural environments (nature parks), the beaches;
Specific special events (golf and tennis tournaments, antique shows, street fairs, marathon
Visitor attractions and theme parks (LEGOLAND California, Flower Fields, others);
Shopping and restaurants (Carlsbad Company Stores, Carlsbad Village)
Tables IV-1 and IV-2 provide an overview and summary of Carlsbad's key attractions and
and 5k races);
selected special events.
The- Flower Fields
The Flower Fields is a working flower farm and somewhat of an institution in North County. The
Flower Fields is a gated public attraction showcasing SO-acres of the world-famous ranunculus flower.
The Flower Fields are in a full bloom for approximately six-weeks each year - from early March through
early May. This annual colorful event has become part of the local heritage. The blooming hillside was
officially named The Flower Fields in 1993.
Annual attendance at the Flower Fields is estimated at 200,000 people, with a relatively high
level of repeat visitation. The Flower Fields continues to operate as a working ranch, and is still the only
ranunculus grower in the world that allows visitors to walk the fields to experience the flowers up-close.
With all the new improvements and development programs taking place at The Flower Fields, attendance
is projected to reach between 225,000 and 250,000 visitors.
In 1999, The Flower Fields teamed up with Armstrong Garden Centers to manage the operation's
retail store and visitor services. The new retail store will be open year-round, and will profile The Flower
Fields' flowers during the regular blooming season. The general adult admission price increased from
$2.50 to $4.00 for the 1999/2000 season. Acdording to management, the price of admission has increased
Flower Fields.
slightly to reflect the addition of a capital improvement program and several new attractions at The
I
LEGOLAND California opened in March 1999. The park was created by the Danish toy
manufacturer LEGO, and is the only park of its kind in the US. The 128-acre park is designed for families
with children between ages 2-12. Six distinctive play areas feature unique attractions, family rides,
restaurants, opportunities to build and areas to explore. About 30 million LEGO bricks were used to
create more than 1,000 colorful LEGO models that decorate the park, adding to its uniqueness.
During LEGOLAND’s first year in 1999, during which it operated only nine months, the park
attracted an estimated 1.45 million visitors. Total one-year attendance is estimated to reach 1.74 million.
According to management, overnight visitors are not tracked specifically by location (i.e. Carlsbad).
However, it is estimated that of total attendance, approximately 106,000 families stayed overnight in a
hotel while visiting the San Diego region and LEGOLAND.
According to survey data that LEGOLAND submitted to the City for the City of Carlsbad
Integrated Transportation System Study, prepared by O’Rourke Engineering, 64 percent of visitors in the
spring and 80 percent in the summer were not San Diego County residents, during the theme park’s first
spring and summer seasons. Approximately 41 percent of visitors were from San Diego County, another
32 percent came from Southern California, 11 percent came from northern California, and 16 percent
came from elsewhere. Almost all visitors drive to LEGOLAND. Among a majority of the guests
surveyed, LEGOLAND was the primary reason for coming to Carlsbad. -
In late 1997, Craig Realty Group completed the development of Carlsbad Company Stores. This
300,000 square foot, $47 million center was three years in the making and has been informally
characterized by industry observers as one of the most architecturally attractive factory outlet centers built
to date.
In 1998, its first full year of operation, Carlsbad Company Stores surpassed national industry
trends by posting sales per-square-feet at $345 - a full 50 percent above the outlet industry average of
$232 per-square-feet. In 1999, customers to the Center increased 15 percent over the prior year and sales
have increased 17 percent over 1998. According to management, Carlsbad Company Stores attracts an
estimated 5 million visits annually, of which 40 percent is from outside San Diego County and southern
Orange County.
choices offering competitive outlet prices. Also, its proximity to the Flower Fields, LEGOLAND
There are several reasons why the Center has been successful. It has an impressive array of retail
California, and new hotels such as the Four Seasons Resort Aviara and the Grand Pacific Palisades, have
all combined to position the center as a major destination for shoppers, including local residents, regional
residents, and tourists. The Company Stores receives regular seasonal business from tour operators that
combine visits to the shopping center with visits to LEGOLAND and the Flower Fields.
The new Museum of Making Music opened at the National Association of Music Merchants’
headquarters in Carlsbad in March, 2000. The 3,000 sq.ft. music-history museum is divided into five
displays, which cover a 100-year era from the 1890s through the 1990s. The Beatles display and a 1967
Fender Stratocaster guitar owned by deceased rock legend Jimi Hendrix are among its popular attractions.
Economics Research Assodales Tourism ImpanSmdy - Cirr of Carlsbad, Sourhern California ERA hjea No. 13484 IV-6
According to management, annual attendance is estimated at 10,000 to 15,000 visitors, derived primarily
from the local market, in particular the educational/school market.
Although not a specific private attraction, the Village of Carlsbad is the City’s historic
commercial district. Today it is a pedestrian-oriented specialty commercial district that serves tourists,
residents, and workers. Several of Carlsbad’s older time-share properties are located along the coast zone
of the Village. There are approximately 600 businesses located within the Village. The Village contains
visitors, the Village is the gateway to Carlsbad.
Carlsbad’s Visitor Center within the historic train depot and is a station stop for the Coaster. For xome
Since 1985, world-class runners have competed each March in the Carlsbad 5000, one of the top
SK races in the US. The race is a two-day event with youngsters competing in a series of distances on
Saturday (3,900 runners in 2000). The event attracts an estimated 15,000 spectators. Sunday is the open
and invitational with 9,500 runners, of which an estimated 1,800 runners (19 percent), come from outside
San Diego County. The event organizer, Elite Racing, Inc., has entered into a partnership with the
Carlsbad Convention and Visitors Bureau to promote the event locally. ESPN2 broadcasts the race
nationwide.
The event attracts an estimated 35,000 spectators annually, primarily from Carlsbad and San
Diego County. According to the event organizer, the direct economic impact of the event is estimated at
and marketing. The Carlsbad 5000 pays the City approximately $5,000 for extra police services. The
$4 million to the region. The event cost $300,000 to stage, most of which goes towards staff, insurance,
event also spends $20,000 on fencing, restrooms, and rentals.
The San Diego Marathon held annually in January is another featured event in Carlsbad. The race
begins and ends at the Plaza Camino Real Shopping Center in the northern part of the city. The race
course is designed to highlight the most scenic areas of the city and coastline. The event has 9,200 paid
consists of a full marathon (26.2 miles), a half marathon (13.1 miles) and a four-mile walk. The dynamic
participants and 2,000 volunteers. The event organizer estimates that roughly 60 percent come from San
Diego County, 20 percent from’Orangebs Angeles/Riverside, and 20 percent from outside these areas.
Annual spectator attendance is estimated at between 20,000 and 30,000.
World Golf Tournament
Consulting World Championship Match Play held at La Costa Spa and Resort in February 1999 and 2000.
The top 64 golf players, based on the World Golf Ranking, participate in the 4-day Andersen
The top players compete for a $5 million purse and $1 million first prize sponsored by Andersen
Consulting.
2000. Ticket prices ranged from $25 to $100. It is estimated that roughly 75 percent of the visitors are
According to the event organizers, the event attracted an estimated 35,000-40,OOO spectators in
from San Diego County, 10-15 percent from Orange County, 5 percent are from Los
Angeles/Riverside/San Bernardino Counties and roughly 5 percent are international visitors. Preliminary
Emnomin Research Associates ERA Pmjed No. 13484
Tourism Impn Study - Ciq of Cwbhd, Southern CaWornia
IV.7
economic impact studies conducted by the event organizer indicate that the tournament generates a direct
economic impact of $25 million into the region.
At the 1996 Presidents Cup, golfs five world governing bodies - the European Tour, Japan Golf
Tour, PGA TOUR, PGA Tour of Australasia and Southern Africa Tour - reached agreement on several
key elements of professional golf designed to create new international events beginning in 1999. Those
"significant competitions" were announced in October, 1997, when the Federation introduced the World
Golf Championships.
The first three jointly sanctioned championships - the Andersen Consulting Match Play
Championship, the NEC Invitational, and the American Express Championship - were launched in 1999.
The Championships will rotate through a variety of outstanding venues worldwide. Roughly half of the
golf courses will be in the United States, with the other half in venues represented by the International
Federation of PGA Tours. La Costa Spa and Resort will host the Andersen Consulting Match Play again
in 2001.
Andersen Consulting, NEC, American Express and EMC are the four umbrella sponsors of the
World Golf Championships. Anheuser-Busch and Nike are worldwide official sponsors of the World Golf
Championships. Buick Motor Division is an official sponsor of the Championships played in the United
States, while Volvo is an official sponsor in Europe.
Since 1982, La Costa Spa and Resort has hosted the annual Tennis Classic sponsored by Acura in
August. The tournament takes place over a 7-day period and attracts an estimated 65,000-75,000
spectators. It is estimated that roughly 60 percent of visitors are from San Diego County, 15 percent from
Orange County, and 25 percent coming from the rest of California and other areas.
The Carlsbad Village Faire, held the first Sunday in May and November, is one of the largest
one-day street fairs in California. These events attract more than 70,000 people that fill Carlsbad's
downtown streets to see the products and offerings of 900 arts and crafts booths. Visitors are primarily
local residents residing in Carlsbad and surrounding San Diego County. The Village Faire pays the City
$5,000 per event for additional police services.
San Diego North County's strong agricultural tradition is evident in the number of thriving
Farmers Markets in the region. The markets provide residents the opportunity to purchase fresh fruits,
vegetables, flowers, and products as well as converse with the merchant farmers and local residents. The
Carlsbad Farmers Market is held on Wednesdays and is popular among local resident of Carlsbad. -
La Costa Spa and Resort opened in 1965 and is one of the premier destination spa resorts in
Southern California. Over the years, La Costa has grown to a full-service, completely self-contained
..
resort offering two golf courses, 21 tennis courts, spas, swimming pools, upscale dining (five restaurants)
and shopping venues. La Costa also has 27,000 sq.ft. of total conference space.
The resort has 479-rooms with an average daily rate, depending upon the season, ranging from
interviews conducted for the Cify of Carlsbad Integrated Transportation System Study indicated that 40
$275 to $460. According to management, the average annual occupancy is in the low lo mid-70s. Past
percent of guests come from Southern California, followed by the northeastern United States, the Chicago
area, the San Francisco Bay area, and the southeastern United States.
La Costa’s two championship golf courses are the site of the new World Golf
Championships/Andersen Consulting Match Play that started in 1999. The resort also features a well-
regarded golf school.
La Costa is designed as a true destination resort, where guests tend to spend most of their time at
the resort for lodging, recreation, entertainment, and dining, and do not leave the premises as often as
guests at the other hotels might.
I33uL&l-
The $200 million Four Seasons Resort Aviara opened in August 1997 as the centerpiece of the
1,600-acres master-planned Aviara community. The hotel sits on a 30-acre hilltop parcel, situated so that
each of the guest-rooms has ocean, lagoon or golf course views.
The Four Seasons has 331-rooms and 78-time share condominiums. According to management,
the resort generates roughly 90,000 room nights annually. The hotel side operates at the mid-70s room
occupancy rate while the time-share has a reported 60 percent occupancy. The average daily room rate for
the hotel ranges from $275 to $400. According to the interviews conducted for the City of Carlsbad
Integrated Transportation Sysfem Study, the majority of guests are from elsewhere in California, followed
by the eastern United States and Texas.
The resort features an 18-hole Arnold Palmer designed championship golf course and hosts
several special events, primarily for hotel guests, such as the Par 3 Challenge ProAm (made for
which utilize the state-of-the-art 12,000 sq.ft. conference facility.
television), jazz-series and fireworks shows. The resort has a relatively high level of corporate guests,
Grand Pacp
Grand Pacific Resorts is the oldest and largest California based timeshare developer specializing
in the Southern California condo vacations market. The company’s newest timeshare resorts include
Grand Pacific Palisades Resort & Hotel and Carlsbad Seapointe Resort, both located in Carlsbad
California,
Grand Pacific Palisades is the latest entrant into the Carlsbad resort market. The resort opened in
March 1999 and currently consists of 90 hotel rooms and 71 time-share villas. At full-build out, the resort
will feature 114 hotel rooms and 161 time-share villas. The complex covers 12.5 acres adjacent to the
famous Flower Fields overlooking the Pacific Ocean and Carlsbad Company Stores, and is within short
walking distance to LEGOLANJI California. Resort features include a gift shop, fitness center, swimming
pools, three spas, 6,000 sq.ft. of meeting space. An on-site Karl Straws Brewery and Grill opened in early
its proximity to EGOLAND California, attracting a high share of overnight families to the park.
2000. Average daily room rates range from $100 to $150. Grand Pacific Palisades benefits greatly from
,,.”“- ,....... l.*....‘.l..t..
Grand Pacific Resorts’ two other properties in Carlsbad include the Carlsbad Seapointe Resort
and the Carlsbad Inn Beach Resort. Both properties are located close to the beach and Carlsbad Village.
Seapointe Resort has 90 time-share units. The spacious interiors all have fireplaces and many
offer whirlpool tubs in the master bath. Average daily rental rates range from $175 to $280. The hotel also
features two large swimming pools. The Carlsbad Inn Beach Resort is reminiscent of an old European inn
located directly adjacent to the beach with a total of 62-units. Average daily rental rates range from $120
to $160.
Table IV-3 provides a summary overview of the performance of the Carlsbad hotel industry and
hotel properties, totaling 2,853 rooms in 1999. As shown, Carlsbad/Oceanside achieved an average 71.5
San Diego County as a whole in terms of average room occupancy and daily rental rates. Carlsbad has 22
percent room occupancy in 1999 up from 70.7 in 1998. In addition, the average daily rate increased
significantly during 1999 to $115.89 up from $103.98 in 1998.
T DlSm
Figure IV-1 below outlines Carlsbad’s tourist destinations, including attractions, lodging, lourist-
oriented retail, parks, golf courses, and selected entertainment and dining venues. As shown, three main
tourist districts stand-out: Carlsbad Village and the beach; Carlsbad Ranch (Flower Fields, LEGOLAND
Aviara).
area); and south Carlsbad with the two major resorts (La Costa Spa and Resort, Four Seasons Resort
Table IV-3
Average Hotel Room Occupancy Rates and Daily Room Rates
for Carlsbad and San Diego County (1998-1999)
-om Occ
Change Change
San Diego County 1998 1999 (%) 1998 1999 (%)
San Diego Central 74.9% 74.0% -1.2% $131.81 $139.21 5.6%
Mission Valley 74.4% 74.1% -0.4% $74.26 $79.34 6.8%
La Jolla - Point Loma 77.8% 76.3% -1.9% $118.88 $126.15 6.1%
San Diego South 62.7% 62.7% 0.0% $44.46 $48.53 9.2%
San Diego North 71.3% 72.0% 1.0% $71.63 $74.96 4.6%
Carlsbad - Oceanside 70.7% 71.5% 1.1% $103.98 $115.89 11.5%
San Diego County -Average 72.6% 73.0% 0.6% $96.14 $102.33 6.4%
Source: Smith Travel Research (STR), San Diego Convention and Visitors Bureau (SDCVB)
Economics Research Assodales Tourism Impct St& - City o/Cnrlsbad, Southern Col~ornio ERA hjed No. 13484 IV-IO
..I. m
I..".". .... ..... h..,"...,..
A total of 1,916 additional hotel rooms are planned, proposed, or master planned in Carlsbad,
including the following: . . . . . . . . . .
Courtyard by Marriott - 145 rooms
Hilton (Palomar Beach Resort) - 162 rooms
Inns of America - 98 rooms
Residence Inn - 121 rooms
Stay Bridge Suites - 106 rooms
Carlsbad Village Resort - 141 rooms
Cannon Court - 86 rooms
Poinsettia Shores Master Plan-Area 6-200 rooms and/or timeshare
Poinsettia Shores Master Plan-Area H-150 rooms
Carlsbad Ranch Master Plan-Area 5-700 rooms
Six of these developments are limited-service hotels without extensive food and beverage service,
meeting facilities, and guest services. Approximately 846 of the rooms are under construction, approved,
or under review, and 1,070 rooms are all allowed under current master plans but have not yet been
proposed.
Eeonornks Research Assodates Tourin Impan Study - C@ of Carlsbad, Southern California ERA hjFc1 No. 13484 IV-11
..-".ll.. I ...... I .... .I.*..
Map IV-1: Overview of the City of Carlsbad's Lodging, Attractions and Tourism Industry
Source: Economics Research Associates
CARLSBAD'S TOURISM MARKET CHARACTERISTICS
Section V
This section presents an overview of the coastal Southern California visitors market and
compares San Diego County with Orange and Los Angeles counties. Carlsbad's tourism characteristics
are then presented within the coastal Southern California context.
SOUTO
During 1999, an estimated 14.7 million overnight tourists visited San Diego, and represent an
important support base for the city and other regional attractions. The growth in overnight visitors has
been growing at a steady pace of around 2 percent annually since 1990. Interestingly, San Diego hotel
room nights have been growing more rapidly, at 2.85 percent per year since 1990. This implies a longer
length of stay and/or an increase in overnight visitors who stay in hotels.
The San Diego hotel market had been depressed in the early nineties, but made a significant
recovery since 1995. While occupancy rates have leveled off, average daily room rates have started
upward again. A large inventory of hotel rooms is scheduled to come on-line in conjunction with the
completion of the convention center expansion.
The key characteristics of the San Diego visitor market are as follows: - The largest proportion of overnight visitors to San Diego come from Southern California (30
percent), followed by Northern California (13 percent), Arizona (12%), and other Mountain
States (8 percent), according to the most recent San Diego Profile of Overnight Visitors (1997),
prepared by CIC Research for the San Diego Convention and Visitors Bureau;
These markets constitute 63 percent of all overnight visitors. Only 6 percent of overnight visitors
are from foreign countries;
The vast majority of visitors (84 percent) come to San Diego either lo visit relatives or for
pleasure/vacation as shown in the exhibit below. An additional 12 percent come to San Diego for
conventions and meetings and 4 percent for business in general;
Tourism in San Diego peaks during the summer, especially during the months of July and
August. During this two-month peak period, monthly overnight visitation is approximately 30
percent higher than the monthly average. The monthly distribution of overnight visitors is
relatively even for the rest of year, except for a slightly lower visitation during January and
February;
The average size of overnight groups is 2.8 persons. Leisure groups are larger at 2.9 persons on
average while convention/business groups are smaller at 2.2 persons on average. The average
number of nights is 4.5 for leisure visitors and 5.4 for conventionbusiness travelers;
The following exhibits profile the visitors to San Diego. Approximately two-thirds of visitors to
San Diego are adult-only groups. The median age of the head of household is in the 35-44 year
old segment. Incomes of visitors are higher than the general public, with over 45 percent falling
in the $40,000 to $80,000 income bracket;
Exhibit V- 1
San Diego Visitor Age Distribution (Head of Household)
35%
18-24 25-34 35-44 45-54 55-64 65i
Age Group
Exhibit V-2
San Diego Visitor Household Income Distribution
30%
25%
Income Bracket
According to the 1997 San Diego Visitor Profile, the most popular tourist destination was Sea
World and the Mission Bay beaches.
Visitors to San Diego spent an estimated $4.8 billion in the regional economy in 1999, an
increase of 3.4 percent over 1998. The annual increase from 1990 to 1999 averaged 4.7
percent. According to the San Diego Convention and Visitors Bureau the approximate
expenditure split was divided into the following: 28 percent was spent on dining, 26 percent
on lodging, 9 percent on entertainment, and 19 percent on retail shopping; and
Exhibit V-3
San Diego Visitor Expenditure Distribution (Total Trip Per Person Spending)
Convenience Transportation
Shopping 532 Lodging
Entertainment Dining
The expansion of the San Diego convention center will allow the facility to host major
national conventions as well as have continuous conventions in either wing.
The Los Angeles Economic Development Corporation (LAEDC) ranks tourism as the third
largest multifaceted industry in Los Angeles County in 1999, with direct spending by overnight visitors of
$12.3 billion, up more than 3 percent compared to 1998.
Total 1998 visitation to Los Angeles County was estimated at roughly 50.8 million. This number
has increased slightly since 1993, when visitation was estimated at 48.8 million. This total visitation is
broken down into 27.4 million day-trip visitors’ and approximately 23.5 million overnight visitors
according to the Los Angeles Convention and Visitors Bureau (LACVB). The total day-trip visitor market
does include visitors from the greater Los Angeles area, therefore they are accounted for in the Los
Angeles County resident markets. ERA estimates that roughly 5.5 million day-trip visitors are non-
residents of the greater Los Angeles County area. Hence, the revised total visitation lo Los Angeles
County was estimated at roughly 29.0 million in 1998. For 1999, total visitation is estimated at 29.1
million.
Of total overnight visitors to Los Angeles, an estimated 77 percent are domestic visitors and 23
percent are international visitors. The domestic visitor market has a higher share of business visitors (27
percent) versus the international visitor market of approximately 13 percent, according to visitor surveys
conducted by the LACVB. The combined pleasure-oriented (non-business) visitor market accounts for
comparable data from the AnaheimIOrange County Convention and Visitors Burcau
Estimate by ERA bawd an various LA tourism market sources, visitor studies including the LDS Angeles Convention and Visitors Bureau and
Emnomiu Research Associates Tourism Impact Study - Ciq o/Carkhad, Soufhern California . ER4 Pmjtct No. 13484 v-3
approximately 76 percent of the total overnight market.
Key characteristics of the Los Angeles County visitor market are outlined below:
The average party size is 2.1 persons with an average length of stay at 5.1 days. International
visitors tend to have a larger travel party compared to domestic visitors (2.4 versus 2.1 persons)
and longer length of stay (6.6 days versus 4.6 days);
The average visitor age is just under 38 years. International visitors tend to have a slightly
younger age profile;
The average household income is estimated at $62,400. The main mode of transport is by air with
58 percent of all visitors followed by car at 36 percent and other modes of transport accounting
for the remainder;
Average spending per person is estimated at $510 per trip for all overnight visitors (international
visitors significantly higher) divided into: accommodations (26 percent), transportation (23
percent), food and beverage (21 percent); shoppinghetail (20 percent), entertainment (7 percent),
convenience/groceries/miscellaneous (2 percent) and other (1 percent);
The top 10 domestic visitor origin markets account for close to 40 percent of the domestic visitor
market. The top 10 domestic visitor origin markets are the following: San FranciscoBay area
accounting for 10 percent of the domestic market; followed by New York Citymewark at 5
percent; Chicago, SeatlleKacoma, Denver and San Diego each with 3 percent; and Dallas/Fort
Worth, Portland/Salem and Sanamento/Stockton all with 2 percent;
Regarding the international visitor market, the top origin market is Mexico, accounting for 26
percent of all international visitors, followed by Japan (14 percent); UK (9 percent); Canada (7
percent); Germany (5 percent); and France, Australia and Taiwan (3 percent each). Other
overseas markets accounted for 30 percent; and
The Los Angeles Visitor Tracking Study (1995 and 1998) found that the average visitor
experiences roughly 3.6 areas of Los Angeles County and visits approximately 5.8 attractions
during their stay. International visitors see the most attractions (7.9 per trip) as compared to the
domestic traveler who visits approximately 5.2. The top attractions are Los Angeles area theme
parks (Disneyland, Universal Studios Hollywood) and Hollywood/movie-related attractions
(Walk of Fame, Rodeo Drive and Sunset Boulevard). In addition, beach areas such as Venice
Beach and Santa Monica are also popular.
Total visitation to Orange County was 37.7 million according to the AnaheidOrange Convention
and Visitors Bureau (AOCCVB) in 1998. This number has been relatively flat since 1993 when visitation
was estimated at 37.5 million visitors. For 1998 this number is broken down into 20.3 million day-trip
visitors and 17.4 million overnight visitors respectively.
The total day-trip visitor market does include visitors from the greater Orange Countyhs
Angeles area; therefore, they are accounted for in the resident markets. ERA estimates that roughly 4.7
million day-trip visitors are non-residents of the greater Orange County area. Hence, the revised total
visitation to Orange County is estimated at roughly 22.1 million in 1998. For 1999, total visitation is
estimated at 22.4 million.
Of total overnight visitors to Orange County an estimated 80 percent are domestic visitors and 20
percent are international visitors. The domestic visitor market has a higher share of business visitors
versus the international visitor market, according to visitor surveys conducted by the AOCCVB. The
combined pleasure-oriented (non-business) visitor market accounts for approximately 82 percent of the
total overnight market.
Key characteristics of the Orange County visitor markets are as follows: - According lo research by the AOCCVB, the average length of stay for visitors was approximately
3.5 nights with 47 percent of visitors traveling with children. International visitors tend to stay
longer compared to domestic visitors;
The median age of the household among those surveyed was estimated at 40 years with an
average travel party size of 3.3 persons; the median annual household income was estimated at
$61,800;
In 1998, there were an estimated 400 conventions and meetings held in Anaheim/Orange County.
The Anaheim/Orange County convention center is experiencing significant growth and recorded
close to one million delegates spending an average 4.5 days;
Visitors residing outside Orange County that visit the area for only one day make up over half of
the domestic visitors to the County, totaling an estimated 19.5 million. The primary reason for
coming to Orange County by these visitors is Disneyland (35 percent of visitors). The visiting
friends and relatives market (VFR) accounted for roughly 20 percent of all visitors and 40 percent
of overnight visitors;
The Pacific West of the US was the key visitor origin market accounting for 63 percent of all
visitors followed by international visitors at 14 percent, Midwest (10 percent), South (8 percent)
and the Northeast at 5 percent;
The average daily expenditure per travel party was roughly $330. The average daily expenditures
per visitor group in selected spending categories was greatest for lodging ($78), followed by food
and beverage ($49), attractions/amusements ($36), non-food shopping ($31) and other ($13); and
The main mode of transport was the car (55 percent) followed by air transportation (39 percent).
According lo visitor surveys, the attractions in the greater Orange County area were: Disneyland,
Universal Studios, Knott's Berry Farm, Seaworld, Hollywood, San Diego Zoo, San Juan
and Medieval Times.
Capistrano Mission, South Coast Plaza (shopping), Fashion Island (shopping), Balboa Pavilion
. ., ,
' , '*.>' . . .. .,,, . . ^j . , ~. ~.
0 COUNTY
LEGOLAND California in March 1999 has stimulated the visitor industry in Carlsbad and North San
North San Diego County is becoming a visitor destination in its own right. The opening of
Diego County as a whole, helping to transform North County into a leisure market. North San Diego
County is now home to two of the four major tourist attractions in San Diego County, the other being the
San Diego Wild Animal Park near Escondido. In addition, North San Diego County offers several golf
resorts, a major performing arts center in Escondido, numerous health spas, plenty of beaches, the
mountains and a local wine country. .. o North ConveW and VIS- tSDNCVB)
From the outset it should be emphasized that it is difficult to derive an accurate breakdown of
visitors to North San Diego County specifically, as very limited data is available.
In 1998/99, the SDNCVB completed a survey of the North County visitor market to determine
certain characteristics. It is important to note that the survey was conducted on a random basis with 2,000
surveys sent out to individuals that have requested data from the bureau*. According to the North San
Diego Convention and Visitors Bureau, total visitor spending for North County was estimated at $1.2
billion in 1998, which corresponds to a quarter of San Diego's visitor spending. Total visitor spending is
projected to rise 5 percent in 1999.
According to the SDNCVB, the key visitor characteristics for the North San Diego County visitor
market are as follows:
Visitor spending averages $1,400 per trip. An estimated 90 percent of visitors dine out three
times per day. ,Percentages of spending by categories are: accommodations (33 percent),
transportation (14 percent), restaurants (20 percent), entertainment and attractions (17
percent), and retail (14 percent);
The average visitor is between 35 and 54 years old, married, with an income of $45,000 to
$75,000. Average party size is three and an estimated 65 percent travel with children;
Nearly all visitors surveyed took less than six months to plan their trip; their average length
of stay is estimated at five days. The entire trip average is nine days with North San Diego
County as part of their trip;
The most popular months of visitation are (in order): July, June, April and March;
Survey respondents were also asked to list communities that they visited the most during their
stay in North County. The top five communities were La Jolla, Escondido, Oceanside, Del
Mar and Carlsbad. The top five attractions visited include: San Diego Zoo, shopping, Wild
Aquarium, The Flower Fields and LEGOLAND California;
Animal Park, and Sea World. The next three most visited attractions in order are: Birch
experience. This methodology ofien presents complications when determining a truly indicative statistic for the Noah County mu, and must
This method has inherenl survey bias. The survey attempts to ~t~ti~tidy present visitor preference and tendency along with aoual travel
lhereforc bc prsxnted under this caved1
Of the various recreational activities that visitors surveyed do during their visit, swimming
received close to 63 percent of the total, making it the most popular activity. Hiking was the
second most popular activity, with 37 percent of the total responses. Boating and fishing
were in the top ten choices of activities, with close to 17 percent of the respondents boating
and approximately 11 percent of the respondents fishing;
Nearly half of the visitors surveyed stayed at a full-service hotel, then friends and family,
budget hotelhotel, resort, timeshare, and bed and breakfast; and - The primary mode of transport is via personal vehicle or rental car, accounting for 92 percent
of all visitors surveyed. In addition, an estimated 18 percent arrive by plane to the area.
Wsbad Conventiaa and VI- ..
ConVis conducts a small annual survey of selected local hotels regarding visitor profile statistics.
A total of 18 hotels participated in the 1999 survey from a total sample group of approximately 20 hotels.
Some of the findings are summarized below:
The percentage of visitors from southern California ranged from 35 to 59 percent. Northern
Californians represented 21 to 34 percent;
Besides California, the top states represented by domestic visitors were: Arizona, Nevada, Texas,
Colorado and Utah;
The percentage of international guests reportedly ranged from between 6 and 19 percent at the
surveyed hotels;
The top three international visitor origin countries were: Germany, United Kingdom, and Canada;
and
The level of leisure travelers among hotel guests from northern California ranged from 21 to 34
percent. For southern California guests, the range was significantly higher, at between 35 and 60
percent.
According lo ConVis, the data is used to ensure that its marketing programs target the right
markets. It should be noted that historic or current detailed visitor survey data and research was not
available in terms of socio-economic and demographic characteristics of Carlsbad visitors.
The City of Carlsbad itself does not collect tourism data. However, some local government
statistics reflect changes in Carlsbad's tourism market.
McClelIan-PalomarAirport Trafjic Volume
McClellan-Palomar Airport was completed in 1959 and is owned by the County of San Diego.
For the City of Carlsbad, the airport represents a unique economic resource not available in most
communities. As air traffic into San Diego's Lindbergh Field increases, more business and resort travelers
may take advantage of easy connections to and from Los Angeles International Airport (LAX) currently
available at the airport. America West now provides service to A-1 from Arizona. In 1998, total
passenger volume averaged 244,000. Table V-1 provides an overview of historic traffic volume at
McClellan-Palomar Airport. Between 1992 and 1998, traffic volume has increased by an annual
compound rate of 1.4 percent.
Table V-1
Overview of Monthly Traffic Volume at McClellan-Palornar Airport (1992-1999)
Month 1992 1993 1994 1995 1996 1997 1998 1999
January 18,165 15,164 18,478 14,216 17,047 16,018 18,829 23,697
February 16,553 16,235 16,483 15,794 14,965 18,273 16,226 24,036 March 16,701 19,458 17,709 16,640 20,357 20,028 20,313 27,374
April 20,172 18,418 16,516 19,184 19,337 18,909 19,948 26,884
June 19,051 18,618 18,085 17,595 19,192 20,612 18,944 23,265
August 21,564 20,128 20,515 19,900 22,399 20,623 23,129
September 18,957 17,894 20,353 17,313 19,779 22,602 21,130
October 19,639 16,820 20,227 16,662 17,133 22,082 23,372
November 19,832 17,576 19,064 15,063 18,132 22,168 20,197
December 17,807 18,029 17,482 14,127 15,324 20,588 22,508
Total 225,041 217,739 220,570 204,191 227,767 243,595 244,346 174,424
Average Month 18,753 18,145 18,381 17,016 18,981 20,300 20,362 -
Average Day 625 605 613 567 633 677 679
Source: McClellan-Palomar Airport
May 18,023 19,898 18,008 16,981 20,597 22,313 21,025 23,527
July 18,577 19,501 17,650 20,716 23,505 19,379 18,725 25,641
"
"
"
"
"
General Fund Revenues and TOT HotelDishicts
The most significant growth in the last five years has been transient occupancy taxes (TOT). In
the fiscal year that ended June 30, 1999, more than $116 million was collected in TOT taxes throughout
San Diego County, of which Carlsbad's TOT taxes accounted for over $7 million or roughly 6 percent of
sales taxes for the City of Carlsbad.
the total San Diego market. Table V-2 provides a historic overview of General Fund Revenue, TOT and
Table V-3 details TOT revenues for four groups of hotels between fiscal year 1993/94 and
1998/99. The hotel districts represent the following:
Hotel Group 1: Resort hotels;
Hotel Group 2: Mid-price/upscale hotels;
Hotel Group 4: Small independentbeach villas.
Hotel Group 3: Economy/budget hotels/motels; and
As shown, Hotel Group 1, comprised of Carlsbad resort properties, accounted for roughly half the
City's TOT revenues between fiscal 1993194 to 1996197. With the opening of Four Seasons Aviara Resort
in 1997, the resort market share of annual TOT revenues increased from 51 percent in 1996/97 to 65
percent in 1999.
Table V-3
TOT Revenue Districts by Selected Hotel Group Categories
for City of Carlsbad (1993-1999)
Fiscal Year 1993194 1994195 1995196 1996197 1997198 1998199 1999100
(ITD -Jan)
Hotel Group 1 $1,773,251 $1,747,831 $1,776,507 $1,968,859 $3,733,167 $4,517,120 $2,530,090
Hotel Group 2 $596,198 $645,970 $702,170 $788,207 $874,775 $1,108,792 $968,909
Hotel Group3 $771,647 $816,466 $856,720 $1,044,416 $1,146,602 $1,264,545 $801,404
Hotel Group 4 $43,827 $45,803 $71,482 $78,343 $86,669 $95,387 $68,888
Total $3,184,923 $3,256,070 $3,406,879 $3,879,825 $5,841,213 $6,985,844 $4,369,291 -
Hotel Group 1 56% 54% 52% 51% 64% 65 % 58%
Hotel Group 2 19% 20% 21% 20% 15% 16% 22%
Hotel Group 3 24% 25% 2s % 27% 20% 18% 18%
Hotel Group 4 1% 1% 2% 2% 1% 1% 2%
Total 100% 100% 100% 100% 100% 100% 100%
Notefltev: Hotel Group 1: Resort hotels
Hotel Group 2: Upscalelmid-price hotels
Hotel Group 3: Economybudget motelshotels
Hotel Group 4: Independent small-scale accommodationbeach villas
Source: Finance Department, City of Carlsbad (2000) and Economics Research Associates
Carlsbad's tourism industry has undergone impressive and sustained growth, with TOT revenues
generated to the City of Carlsbad growing at an average of 17 percent annually from FY93/94 to FY98199. This growth was attributable to the opening of Four Seasons Aviara Resort in 1997 and room-
night growth associated with LEGOLAND California during 1999. While future growth is anticipated,
Economics Research Assodates ERA Pmjed No. 13484
Tourism Impacr Srudy - City ojCarfrbod, Southern California v-10
Em ,,""*-,,.I .... .. I. .,...... ,..
the annual growth rate should subside. This growth is furthermore substantiated by the fact that, for the
past 45 months in a row, TOT revenues have been higher than the corresponding month a year earlier.
Carlsbad is the leading TOT generator among North County cities.
Exhibit V-4 below, provides a comparative overview of TOT revenues for Carlsbad and North
County for the last two years.
Exhibit V-4
Comparative Overview of TOT Revenues for Carlsbad
and North County (1998-1999)
514'000'000 1
~12,000,000 .
$10,000,000 .
$8,000,000 .
$6,000,000 . 2 Ca.1sb.d
$4,000,000 __
$2,000,000 "
so -
I
1997i98 1998/99
Fiscal Year
Carlsbad
Del Mar
0 Oceanside
0 Exondido
Encmilas
Solana &ach
vim
0 ?an Marcos
Total
Based on this preliminary review of tourism data and research for Carlsbad and coastal southern
California destinations, a comparative overview of key market characteristics is presented in Table V-4
below.
As shown, Los Angeles, Orange and San Diego Counties all have very large overnight visitor
markets. In general, Orange County and San Diego are more family destinations than Los Angeles. The
opening of LEGOLAND California has contributed to a younger visitor age profile for Carlsbad, which
was previously more adult/senior oriented. The Southern California visitor industry is characterized by
relatively high average household incomes. ERA expects Carlsbad's tourism to be in the upper tier of
visitor market research conducted by LEGOLAND California, indicates a large number of families with
average median income due lo the two major Carlsbad resorts and LEGOLAND California. Internal
average income of over $lOO,OOO annually.
Diego, which is more dependent on California and the western US. In addition, the level of international
Los Angeles County and Orange County draw visitors from further locations compared to San
visitation for San Diego is lower (6, percent) compared to Orange County (14 percent) and Los Angeles
(23 percent).
Average party size for San Diego and Carlsbad are estimated at approximately 2.8 persons, with
visitors staying longer in San Diego versus North County. North County is often on visitors' itinerary but
as a day-trip from their base in San Diego or Orange County. Los Angeles has the longest length of stay
at 5.1 nights, followed by San Diego at 4.6 nights and Orange County at 3.3 nights. Carlsbad has the
shortest average length of stay estimated at 2.7 nights due to the relatively larger proportion of
corporate/business visitors, Carlsbad's day-trip destination appeal, and the City's limited attractions base.
Finally, average daily visitor expenditures for Southern California markets range from an
estimated $71 for San Diego to approximately $100 for Los Angeles. Comparable data for Carlsbad is not
available; however, based on the mix of hotels (resorts), attractions (LEGOLAND) and retail venues,
average daily expenditures in Carlsbad should be in this range.
SELECTED -RVIEM!S
ERA interviewed selected key players and industry leaders in the Carlsbad tourism industry lo
provide an overview of the perceptions of Carlsbad's attributes and shortcomings as a tourist destination,
and the adequacy of facilities within the City.
Individuals from the following organizations were interviewed:
Hotels and Resorts: La Costa Spa & Resort, Four Seasons Aviara Resort, Grand Pacific
Resorts, Holiday Inn
Area Attractions: LEGOLAND California, Flower Fields, Air Combat & Biplane
Adventures, North County Children's Museum, Museum of Making Music, Callaway Golf
Company, Taylor Made/Adidas
9 Retail and Shopping Centers: Carlsbad Company Stores, Hadley Fruit Orchard's, Witch
Creek Winery
IndustryPublic Organizations: Carlsbad Convention and Visitors Bureau, Carlsbad Chamber
of Commerce, Carlsbad Village Business Association, North County Convention and Visitors
Bureau, San Diego Convention and Visitors Bureau
Special Event Organizers: In Motion, Inc., Elite Racing, Inc., Andersen Consulting Match
Play
Others: McCiellan-Palomar Airport, California State Parks, Carlsbad Police Department and
City of Carlsbad .. ons of C&hd as a T-
Based on the interviews, the following key target markets were identified for Carlsbad:
7
Short-break visitors (resorts, spa, golf, etc.)
Southern California day-trip visitors
Conference/corporate hospitality
International visitors
Several key themes emerged summarizing Carlsbad's identity, image and tourism product:
lllfmes
Nature -Flower Fields (major commercial flower-growing center) and nature trails
Golf - championship courses (golf manufacturer capital of the world)
Beaches (7 miles of beaches)
Small TownlVillage-like Atmosphere - Carlsbad Village
Educational Family Entertainment - LEGOLAND California (Children’s Museum)
Resorts - La Costa Spa and Resort, Four Seasons Resort Aviara, Grand Pacific Palisades
Health and Fitness - spa (Alt Karlsbad), mineral water, Carlsbad 5K, San Diego Marathon
The interviews identified the following pros (strengths) and cons (weaknesses) of Carlsbad’s
current tourism product:
Pros/Streneths
Small-town feel (“smallness”), tranquility and life-style (affluence of City)
* Location (easy access from San Diego/Orange County via 1-5) and the beaches
Attractions mix (Flower Fields, LEGOLAND) and being part of the North County region
Two major resorts and new quality hotels/time-share development
Special events calendar includes several major popular events (San Diego Marathon,
Andersen Consulting Match Play, Tennis Classic, Carlsbad 5K) -
The overall marketing of Carlsbad as a destination (limited name recognition -the need to
take both a local and regional approach towards creating a brand name)
Signage problems throughout the City (difficult for visitors to find their way around) - in
addition, coordinated signage would facilitate the creation of a unified image and destination
for Carlsbad
Few major attractions in Carlsbad other than LEGOLAND (seasonal nature of the Flower
Fields)
Lack of waterfront restaurants (upscale dining) and limited nighttime entertainment
opportunities (lack of theater and show venues compared to adjacent cities)
Limited opening hours in Carlsbad Village is a problem (most stores are closed after 5:00pm)
Traffic bottlenecks in Carlsbad Village during the peak season and special events
Parking situation in the Village area
Distinct quality differences between the “old” and “new” lodging properties and commercial
developments
Economics Rcaesreb Associates Tourirm Impner Sudy - Ciq of Carlshd, Sourhcm California ERA Pmjea No. 13484 V-14
The following opinions were expressed regarding the adequacy of tourism-serving facilities and
infrastructure:
Representatives of Carlsbad's major resorts were pleased with the current road system
leading up to their properties, and the circulation system's sufficient capacity to handle traffic
flow (Aviara Parkway, Poinsettia Blvd. and La Costa Avenue). Some tourism representatives
interviewed felt that traffic on Palomar Airport Rd. is congested during peak hours and would
benefit fiom an expansion that would add an extra lane in each direction. In addition, some
noted that the Carlsbad Village area tends to become congested during the peak tourism
season and during special events.
Several hotels and attraction representatives stated that public transport needs to be more
visible in Carlsbad and that shuttle and taxi services are inadequate (limited schedule and
long waiting time). Some felt that sitting and waiting areas should be improved, including at
the Coaster station in order to make transit more user-friendly and to encourage visitors to use
it. In that regard, improved signage to Carlsbad Village, hotels, and attractions was also put
forward as a recommendation.
Some felt that shuttle service should be improved between the retail, hotel and attractions
nodes connecting Carlsbad Village and the beach with Carlsbad Ranch (Flower Fields,
that a public/private partnership to provide the service would be desirable in order to operate
Company Stores, LEGOLAND, Grand Pacific Resorts), and area hoteldresorts. Some felt
the shuttle service efficiently, regularly, and successfully. Ticket prices should not be
prohibitive for visitors, workers and residents to use the service.
Several of the resort properties indicated that Carlsbad is too dependent on San Diego
Lindbergh Field Airport versus McClellan-Palomar Airport and that the City would benefit in
the long term from expanding the airport facilities. - The conference/corporate hospitality market continues to grow and is considered a key future
growth market. Several key players indicated the possibility of evaluating the potential of a
dedicated high-quality medium-sized free-standing conference center in Carlsbad.
Some hotels representatives indicated that their guests prefer to shop in Del Mar, La Jolla and
San Diego due to their broader mix of retail and their longer operating hours.
Some cautioned that development trend of limited service hotels is not good for the overall
quality and appeal of Carlsbad as a destination. Several attractions, special event organizers
and tourism organizations indicated that future development should focus on recognized
' brand-name 3-star hotel chains with established marketing networks and reservation systems
(such as Hyatt, Sheraton, and others). At the same time, there is concern among some
hoteliers regarding the risk of overbuilding the market with too many new hotels.
Some felt that recreational opportunities should be increased, such as more high quality golf-
courses.
Eeonornics Research Assodates Tourirm Impct Study - Ciry of Carisbad, Sourhem Californin ERA Pmjed No. 13484 v-IS
., "n"D....I...I,l...".....I
- rlst Tr-
The City has undertaken a comprehensive analysis of Carlsbad's integrated transportation system.
The City of Carlsbad Integrated Transportation System Study, prepared by O'Rourke Engineering,
included a focused review of tourist transportation needs based on interviews with tourist-related
operations and a random survey of tourists conducted during the summer of 1999 at selected locations
frequented by tourists. The Study identified the following issues related to tourist transportation:
An opinion among some Carlsbad Village merchants and the Carlsbad Business Association
that convenient parking in the Village is inadequate to serve demand during peak tourist
season and special events, which discourages patronage. Also, Village customers do not
utilize public transit, such as the Coaster, significantly. The Association would like to see a
shuttle service to bring tourists and residents to the Village.
Some interviewed cited a need for direct transportation from the Oceanside Transit Center,
served by Amtrak, and that a tourist-oriented "shuttle" is needed within the city;
While visitors do not use public transportation significantly, some of the tourist-related
operations, in particular LEGOLAND, state that public transportation is important for many
of their employees.
Carlsbad could improve the linkages to the Amtrak Station in Oceanside to encourage more
Southern California residents to visit Carlsbad by train, and to accommodate international
tourists, many of whom are accustomed to transit.
The Study recommends a City-sponsored or subsidized Jourist-oriented shuttle service to
transport tourists in the City efficiently and effectively. The Study recommends that this
system be designed on a fixed-route that links hotels with tourist destinations, on a regular
and publicized schedule, and at an affordable rate.
The Study further recommends consistent monitoring of the impacts tourism has on the
transportation network by tracking hotel demand, traffic flows, and parking demand. The
Study identified four recommended monitoring stations at Palomar Airport Road & Paseo del
Norte, Canon Road & Paseo del Norte, Carlsbad Boulevard & Carlsbad Village Drive, and El
Camino Real. The Study also recommended specific monitoring of parking demand and
supply at Carlsbad Village, and annual surveys of tourists regarding their transportation needs
and usage.
CURRENT AND FORECASTED TOURISM VISITATION
Section VI
CURRENT VISITXQQN TO CARLSEAR
For the purposes of this study, the City of Carlsbad has defined the tourist market as: 1) estimated
day-trip visitors to LEGOLAND California from outside the City of Carlsbad, and 2) overnight visitors to
hotels and other types of accommodation (beach villas, campgrounds, etc.) including those visiting family
and friends (VFR market).
To compensate for the lack of data on the size of the total visitor market to Carlsbad, ERA
estimated tourism based on the total hotel room inventory in Carlsbad including time-share units, smaller
beach villas, campgrounds and other types of accommodations.
Table VI-1 provides an overview of this calculation. Based on the total hotel room inventory of
approximately 2,853, an average room occupancy of 71.5 percent in 1999, an average party size of 2.50
persons, and a length of stay of approximately 2.66 days (taking into account the relatively large
corporate market), ERA estimates that the annual overnight visitor market is 809,400 visitors.
In addition, based on data provided by LEGOLAND California, ERA estimates that the day-trip
visitor market is roughly 1.57 million (day-trip visitors from outside Carlsbad).
The combined overnight and day-trip market is an estimated 2.38 million. The size of Carlsbad's
overnight visitor market corresponds to approximately 6 percent of the total annual overnight visitation to
San Diego County in 1999.
Table VI-1
Estimated Overnight Visitor Market to the City of Carlsbad (1999)
Carlsbad Lodging Market Visitor Market
Number of Hotel/Motel Rooms (incl. time-share) 2,853
Average Occupancy Rate 71.5%
Room Nights Sold Per Annum 744,600
Average Length of Stay (Nights)'.'
Number of Parties Per Annum
Average Number of Persons Per Party'
Number of Persons Staying in Hotels & Motels
2.66
280,100
2.5
700,300
Estimate Overnight Visitors Not Staying In Hotels and Motels' 43,600
Estimate Visiting Friends and Relatives Market 65,500
Estimated Other Visitors3 109,100
Economics Research &sodater Tourirm Imper Study - Ciq of Codshf, Southern Cali/onin ERA Pmjed No. 13484 VI.1
Table VI-1 (Continued)
Estimated Overnight Visitor Market to the City of Carlsbad (1999)
Carlsbad Lodging Market Visitor Market
Estimated Total Overnight Visitors Per Annum' 809,400
Estimated Total Day-Trip Visitors5 1,566,900
Estimated Total Carlsbad Visitor Market 2,376,300
Note: Numbers may not add due to rounding ' Average for all overnight visitors staying in hotels/motels * Data obtained from Carlsbad/San Diego North/San Diego Convention and Visitors Bureau and attractions research regarding visitors staying at campgrounds, vacation rentals/condos and other overnight accommodation. The number was estimated by discounting the average party group size of approximately 4.0 persons for San Diego County taking into account the level of business visitors
room. Thus, Average group party size was discounted from 2.8 persons o 2.5 persons
(average party sue of 1.0 person) versus pleasure visitors in order to reflect actual party size per hotel
4
Represents visitors staying with family and friends within the City of Carlsbad
Carlsbad day-trip visitor market estimate based on research from LEGOLAND California (assumed full-year of operations), represents day-trip visitors from outside Carlsbad. Comparable data on the total day-trip visitor market for San Diego County and qualified estimates through interviews with major Carlsbad attractions/resorts were also utilized
Source: Carlsbad Convention and Visitors Bureau, San Diego North Convention and Visitors Bureau,
Carlsbad Hotels, LEGOLAND California and Economics Research Associates
To estimate future tourism growth factors in Carlsbad, ERA examined the historic and future
growth of selected Southern California visitor destinations such as San Diego, Los Angeles and Orange
County, and overall trends in domestic national US tourism:
Sun Diego Visitor Market Growth: The overnight-visitors market to San Diego has been growing
at a steady pace of around 2 percent annually since 1990. San Diego hotel room nights have been
growing more rapidly at 2.85 percent per year since 1990. Based on research by the San Diego
Convention and Visitors Bureau (SDCVB), ERA projects an average annual growth between 1.90
and 2.20 percent for the overnight visitor market in the next five years.
Los Angeles County Visitor Market Growth: Based on research by the Los Angeles Convention
and Visitors Bureau (LACVB), historic performance of the Los Angeles visitor market combined
with current and future developments in the local attractions industry, ERA projects an average
annual growth of 0.75 percent for the overnight domestic market including day-trip market and
slightly higher at 1.00 percent for the international market in the foreseeable future.
.. '*>$,.?, ,."""l,,."" .I... *... " .....
Orange Counry Visitor Market Growth: Based on the historic performance of the Orange County
visitor market, research conducted by the haheidorange County Convention and Visitors
Bureau (AOCCVB), taking into account current and future developments in the local attractions
industry, ERA projects an average annual growth of 1.50 percent for the overnight domestic
market, 0.75 percent annually for the day-trip market and slightly higher at 1.10 percent for the
international market in the foreseeable future.
. .,,
Trends in Total Domestic US Travel: Table VI-2 provides an overview of trends in total domestic
travel in the US between 1988 and 1999 based on the National Travel Survey conducted by the
Travel Industry Association of America (TIA) in cooperation with the US Census. Total
domestic travel is expected to continue to grow between 3 percent'and 3.5 percent in the next five
years. It should be noted that between 1988 and 1998, domestic pleasure travelers grew at a
higher rate (4.2 percent annually) compared to total person trips.
Table VI-2
TOTAL US TRAVEL VOLUME IN MILLION PERSON TRIPS (1988-1999)'
Annual Domestic Annual
Travel Volume Change
3.58%
2.16%
Year
1988 925 1989 945
1990
1991
1992
1993
1994
1995
1996
1997
1998
Estimate 1999
956
980
1,063
1,057
1,139
1,173
1,161
1,256
1,305
1,351
1.16%
2.51%
8.47%
7.76%
2.99%
-1.02%
8.18%
3.90%
3.50%
-0.56%
CAGR (1988-1998) 3.50%
travelling 100 miles or more from home one way
Source: Travel Industry Association of America (TIA), 1998 Travel Market Report
Total US travel market is quantified by million person trips. A person trip is one person
- Furthermore, according to the Travel Industry Association of America PA), the share of travel
with children in the US has increased from 17 percent of total person trips in 1988 to an estimated
23 percent in 1998. This indicates an increased focus on family travel, which benefits family-
oriented vacation destinations.
CTIONS
ERA believes that the Carlsbad lodging market will experience significant growth in the
foreseeable future due to additional room-capacity coming online between now and 2002. During the year
2000, three new hotels are opening (Hilton Gardens Inn, Marriott Courtyard, Comfort Inn) and existing
hotels are expanding (Grand Pacific Palisades Resort is adding new timeshare units), resulting in
"- *,~ '. +... . . I,, .. .
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'
l,".,".,...l.".l.L....'.....
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approximately 450 new rooms in 2000. In addition, there are plans for a major family hotel development
adjacent to LEGOLAND California in 2001/2002.
. .
Furthermore, the North San Diego County region as a whole will also be expanding the lodging
market and attractions industry, adding to the critical mass of lodging and attractions supply.
LEGOLAND California has committed $25-$30 million in capital investments over the next three years
for improvements in the park such as new rides, attractions and shows. Currently, 93 of the park's 128-
acres are developed, so there is room for expansion.
Table VI-3 below provides an overview of planned and proposed developments within the City of
Carlsbad during the next few years.
Based on the review of tourism growth trends for Southern California, total domestic US travel
patterns, and planned/proposed developments in the Carlsbad market, ERA estimates the following
growth rates for the next ten years:
Annual Carlsbad Tourism Growth Rate (2000-2005): Between 2.5 and 3.0 percent
Annual Carlsbad Tourism Growth Rate (2005-2010): 2.0 percent for the period
Based on these estimated future growth rates, ERA has projected the following ten-year forecast
for Carlsbad tourism:
Table VI4
Projected Carlsbad Tourism Market (2000-2010)
2000 2005 2010
Total Annual Carlsbad Visitor Market' 2,442,000 2,797,000 . 3,088,000
Total Overnight Visitor Days 2,271,000 2,601,000 2,872,000
Total Day-Trip Visitor Days 1,610,000 1,844,000 2,036,000
Total Annual Carlsbad Visitor Days2 3,881,000 4,445,000 4,908,000
between 2005 and 2010.
' Using an average growth rate of 2.75 percent between 2000 and 2005, and 2.0 percent
Source: Economics Research Associates
Including total overnight visitor days and day-trip visitors -
In order to derive a reliable estimate of the tourism seasonality in Carlsbad, ERA reviewed and
analyzed relevant tourist-related data such as monthly TOT revenues for the City of Carlsbad, seasonal
room occupancy for Carlsbad/San Diego North coastal area hotels, and quarterly attendance from
LEGOLAND California and other Carlsbad attractions. In addition, ERA relied on valuable input from
interviews with industry leaders and special event organizers.
. ..i .
... e,::.,;:., &.<6.2'.'
i ..,! 'h:,'.,.,. . .., ,..""",,. ,..... ..*... "...,..
Based on other ERA leisure and tourism-oriented projects in San Diego County, ERA has the
following general observations regarding seasonality of tourism:
* Tourism in San Diego peaks during the summer, especially during the months of July and
percent higher than the monthly average. The monthly distribution of overnight visitors is
August. During this two-month peak period, monthly overnight visitation is approximately 30
relatively even for the rest of year, except for slightly lower visitation during January and
February.
Generally, all of San Diego's tourism indicators track on the same seasonality timing and
magnitude, except for relatively higher attraction attendance during the summer. ERA believes
this attendance spike is a combination of more vacation travelers (with higher propensity lo visit
attractions) and day visitors (whose destination is a specific attraction).
Table VI-5 provides an overview of various indicators of the seasonality of visitation to Carlsbad.
Table VI-5
Indicators of Tourism Visitation Within the City of Carlrbad (1999) (converted to percentage of total for comparability)
IsadlhQ San Diego Palomar
Carlsbad North Coastal Airport San Diego
Hotel TOT Room Carlsbad Passenger San Diego Overnight
Month Revenues Occupancy Attractions Traffic Attractions ' Visitors
January 7.0% 7.2% 3.5% 7.7% 5.3% 7.3%
February 7.9% 7.8% 3.5% 6.6% 6.3% 7.0%
March 9.0% 8.7% 11.8% 8.3% 8.1% 9.0%
April 8.7% 9.0% 12.0% 8.2% 7.8% 8.2%
June 8.7% 8.6% 11.3% 7.8% 9.5% 8.1%
July 10.1% 9.7% 12.0% 7.7% 13.2% 10.9%
August 10.6% 10.0% 13.1% 9.5% 12.9% 10.5%
September 7.8% 7.7% 8.9% 8.6% 7.5% 7.4%
October 8.2% 8.3% 5.3% 9.6% 7.4% 7.6%
November 7.9% 7,6% 4.4% 8.3% 6.6% 8.2%
December 6.0% 6.9% 4.4% 9.2% 6.7% 7.6%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
season), Children's Museum of North County, and selected smaller specialty attractions ' Carlsbad attractions include: LEGOLAND California (full-year of operations), Flower Fields (two-months
* San Diego attractions include': Sea World, Wild Animal Park, Old Town San Diego, Cabrillo Natl. Monument,
and Mission Bay Center.
May 8.2% 8.6% 9.8% 8.6% 8.0% 8.2%
Source: City of Carlsbad - Finance Department, Carlsbad Convention and Visitors Bureau, San Diego North
and Recreation, and Economics Research Associates Convention and Visitors Bureau, LEGOLAND California, Flower Fields, City of San Diego Department of Parks
and the highest visitation during the summer months (July/August). December and January are considered
As shown in Exhibit VI-I above, Carlsbad's tourism is seasonal with a peak in spring (March)
the off-peak season, with the lowest overall visitation for both Carlsbad hotels and attractions. Still,
tourism to Carlsbad appears to be relatively stable throughout the year compared to many other markets.
As indicated in the previously conducted Transportation Study for the City of Carlsbad, special
events do not seem to affect tourist-oriented Carlsbad as a whole with the exception of the Flower Fields
that bloom in March-April, Andersen Consulting Match Play (February), La Costa Tennis Classic and the
Carlsbad 5K and San Diego Marathon.
Table VI-6 outlines the estimated seasonality of total annual tourism to Carlsbad:
Table VI-6
Estimated Seasonality of Tourism to Carlsbad (1999)
Month
January 6.2% 147,331
February 6.4% 152,083
March 9.7% 230,501
April 9.4% 223,372.
June 9.3% 220,996
July 10.0% 237,630
August 10.9% 259,017
September 8.2% 194,857
October 7.4% 175,846
November 7.6% 180,599
December 6.7% 159,212
Total 100.0% 2,376,300
Source: Economics Research Associates
Monthly Carlsbad Absolute Monthly
Tourism in Percentage Carlsbad Tourism
May 8.2% 194,857
I
ERA has estimated design-day tourism within the City of Carlsbad for a typical busy-day,
exclusive of special events, during the peak-season.
Design-day visitation is widely used throughout the attractions and theme park industry as an
important planning tool in the process of developing and analyzing capacity implications in the visitor
attractions. With the exception of parking, it is neither economical nor necessary to plan the physical plant
of a “theme park” to accommodate absolute peaks in attendance. A good balance for the City of Carlsbad
is achieved using a “design-day” average of the 20-30 busiest days through the year.
The design-day would most likely represent an average weekend day during the peak months of
March/April (spring) and lune/July/August (summer).
The attendance on design day is dependent upon the relative propensities to attend by month and
by day of the week. During the busiest periods, which are typically during the school holidays/vacation
periods, visitation is spread more evenly throughout the week than at other times. At these times, each
weekday accounts for some 10 percent of the total weekly total. ERA expects Carlsbad to have fairly
high weekend visitation versus weekday due to its large regional day-trip visitor market.
Outside school holidays, weekends tend to be considerably busier than weekdays with up to
nearly 50 percent of the weekly visits occurring on weekend days.
Entertainment content and “park” capacities are based on the crowd levels occurring during the
peak period during the design day. This is called the peak-in-grounds or peak-in-park crowd. The peak-
period of the design-day. The pattern is based on the probable operating hours of major attractions and
in-grounds crowd is determined by estimating the pattern of arrivals and departures during the operation
actual patterns in comparable cities. The pattern indicates a peak-in-park crowd of roughly 90 percent for
Carlsbad. There is expected to be some evening arrivals stimulated by special events etc.
The preliminary estimated design-day for the City of Carlsbad is shown in Table VI-7.
Table VI-7
Estimated Design Day and Peak-in-Grounds Visitation in Terms of Visitor Days
for the City of Carlsbad (2000-2010)
2000 2005 2010
Estimated Total Annual Carlsbad Visitor-Day Market 3,881,000 4,445,000 4,908,000
Peak Month Visitation (@10.9% of total) 423,030 484,510 534,970
Weekly Visitation (@23.3% of peak month) 98,570 112,890 124,650
Design Day Visitation (@25% of a week) 24,640 28,220 31,160
Peak-in-City Visitation (@go% of design-day)
Source: Economics Research Associates
22,180 25,400 28,040
The design-day criteria have been based on the following assumptions regarding visitor
attendance patterns:
Peak month attendance in August accounts for 10.9 percent of annual visitation to Carlsbad
* An even spread of visitors occurs weekly during the peak month.
Average weekend day (Sunday) attendance during the peak month is estimated at 25 percent
of total weekly attendance. (During holiday seasons while school is out, visitation spreads
out throughout the week.)
Based on the anticipated average length of stay, envisaged operating hours of attractions, and
ERA experience, 90 percent of the design-day attendance will be in Carlsbad during the peak
afternoon period.
These peak-in-grounds estimates are based upon a June/July/August months which are a key
school holiday period and peak period of visitation to other southern California markets.
Typically, Saturdays and Sundays would be the most popular days with some 25 percent of
weekly visits occurring on these days. The weekday profile generally shows a stable pattern in visitor
numbers through the week of approximately 8 to 10 percent each day. ERA would expect this pattern for
Carlsbad.
increase of Carlsbad’s population. It should be noted that LEGOLAND California accounts for a
The estimated almost 25,000 design-day visitors to Carlsbad is equivalent to about a 32 percent
significant majority of the estimated design-day visitation.
Dav andcture Capacity.
While the design-day visitors would increase the City’s population, the design-day population
increase would occur when the worker population is much less since the design-day occurs during the
weekend. Much of the City’s road infrastructure is designed to accommodate weekday, commuting peak-
hours for Carlsbad residents on their way to work, and non-residents traveling to workplaces in Carlsbad.
Most of the City’s infrastructure system, especially roads, therefore, should have the surplus capacity
during the weekends to accommodate design-day tourist activity. There may be exceptions, however, at
key cornmercial-retail locations that attract a large volume of weekend resident-shoppers unless the traffic
impacts are mitigated.
of Special EvcnhmR&g-Desien-Day Vlsltatlon
In general, the busiest tourism months are March-April and June through August, with the Flower
Fields, LEGOLAND California, resorts and the beaches driving visitation to Carlsbad. The timing of the
largest special events, and their impact on visitation to the city, are outlined below:
.. .
San Diego Marathon held in January with between 20,000-30,OOO spectators divided over
two days in the downtown Carlsbad area and Plaza Camino Real;
Andersen Consulting Match Play Golf in February with 35,000-40,000 spectators over five-
days at La Costa Spa and Resort;
Carlsbad 5K held in late March with an estimated 35,000 visitors divided over two days in
the Carlsbad Village and beachfront area;
Flower Fields in March through early May with 225,000 visitors at Carlsbad Ranch;
Carlsbad Village Faire in May and November with 60,000-70,000 visitors during the one-day
event in downtown Carlsbad; and
La Costa Tennis Classic in August with an estimated 65,000-70,000 in attendance over seven
days held at the La Costa Spa and Resort.
The largest special events tend to fall outside the peak summer tourism season and are spread
over several days (with the exception of the La Costa Tennis Classic). Also, the vast majority of special
events primarily attract local residents and day-trip visitors from the regional San Diego County market.
Therefore, the special events should not affect design-day visitation significantly.
I.",,"..,....."I1l...'.' ..,. '
FISCAL IMPACTS OF TOURISM
Section W
This section presents an estimate of tourism's annual fiscal impacts to the City's General Fund
revenues and expenses. Tables VII-I through VII-9 present the fiscal impact analysis. -
The primary sources of fiscal revenue from tourism are transient-occupancy taxes, sales taxes,
and property taxes assessed on tourist-related developments. These revenues are directly or indirectly
generated by tourist expenditures.
exists for Carlsbad specifically, estimates of food, beverage, and retail expenditures depend on
While accurate data for estimating hotel room-night expenditures and attraction expenditures
countywide tourist surveys, since Carlsbad has not undertaken a formal tourist survey to generate local
tourist expenditure factors.
Based on available data, it is estimated that tourists to Carlsbad spend approximately $206
generated by day-visitors to LEGOLAND, as shown in Table VII-1. The estimated distribution by
million annually in the city, of which 60 percent are generated by overnight visitors and 40 percent are
expenditure category is shown in Exhibit VII-1.
ESTIMATED DISTRIBUTION
Exhibit W-1
OF
TOURIST EXPENDITURES
Entertainment/
Attractions
20%
Transport
4%
Retail
18%
Lodging
37%
Food &
Beverage
21%
Economics Research &sodates Tourirm lmpn Srudy - Ciy of Carisbad, Sourhem Cali/ornh ERA Pmjed No. 13484 VII-1
tam ..""" ,,,......., b..,"'..,..
transient-occupancy taxes (TOT) and sales taxes, as shown in Table VII-2. Of this amount, 90 percent
These expenditures generate an estimated $8.3 million in expenditure tax revenue, such as
comes from TOT.
Tourism-related property generates an estimated $1.3 million annually in property tax revenue to
the City of Carlsbad, as shown in Table VII-3. Most of this revenue is attributable to three properties -
LEGOLAND, the Four Seasons Resort, and La Costa Resort. Tourism-related properties comprise 58
percent of the City's total commercial and recreation property assessed valuation.
Other minor revenues, such as kanchise fees, fines, business licenses, and others, are estimated as
shown in tables VII-4 and VII-5.
Overall, tourism to Carlsbad generates an estimated $10.5 million in annual fiscal revenues to the
City, as shown in Table VII-6. Transient-occupancy taxes comprise approximately 71 percent of these
revenues, as illustrated in Exhibit VII-2.
DISTRIBUTION OF FISCAL REVENUE Exhibit VU-2
Other Revenue
TOT
71 %
P
Fiscal expenditure estimates were based on the City's budget for General Fund expenditures, and
an allocation of these expenditures by land use, as shown in tables VII-7 and VIM. Fiscal cost factors
per $1 million of assessed valuation for commercial land uses were developed and applied to the
estimated assessed valuation of tourism-related properties presented in Table VII-3. The cost factors
were based on assessed valuation since this was the most reliable data available for making estimates.
Assessed valuation is an approximate surrogate measure of building space and its utilization; however, it
is also a conservative basis for cost factors since it implies that higher value properties demand as much
or more services than lower value properties, which is not necessarily true. Some higher value properties,
which would tend to reduce public service needs.
such as LEGOLAND and resort hotels, have their own private security and better fire-safety systems,
n;n
1."""" ...,. .... ...
Based on these conservative factors, estimated annual fiscal costs associated with tourism is
approximately $4.6 million, of which 44 percent is associated with public safety and 20 percent is
associated with public works. -
As shown in Table VII-9, the estimated annual net fiscal impact to the City of Carlsbad's General
Fund is as follows:
Annual Fiscal Revenues $10,S4S,oOO
Annual Fiscal Costs '%4.639.ooo Net Fiscal Impact $ 5,906,000
The estimated ratio of fiscal revenues to costs is 2.27/1.00
ESTIMATED ANNUAL TOURIST EXPENDITURES IN CARLSBAD (1999)
Table VII-I
Annual Overnight-Visitor Nights
Annual Day Visitors (1)
Annual Visitor-Days
Assumed
Total
Carlsbad Daily Carlsbad
Capture Rate Capture
2,153,004 100% 2,153,004
1,566,900 100% 1,566,900
3,719,904 100% 3,719,904
Overnight-Tourists Expenditures
Estimated
Lodging s 34.66 $
Food & Beverage $
74,630,000 100% $ 74,630,000
Retail
50% $ 22,704,172
Transportation $ 8.29 $ 17,838,992 35% $
Entertainment & Attractions
6,243,647
Sub-total $ 195,466,820
5,966,211
6 123,734,138
21.09 $ 45,408,344
$ 18.83 $ 40,543,164 35% $ 14,190,108
$ 7.92 $ 17,046,318 35% $
Day-Tourists Expenditures (1)
Lodging $ -$ 0% $
Food & Beverage $ 21.09 $ 33,047,005 65% $ 21,480,553
Retail $ 18.83 $ 29,506,255 80% $ 23,605,004
j ransponation s 8.29 $ 12,982,752 10% $ 1,298,275
Enlenainment & Attractions (2)
Sub-total $ 111,378,850
100% $ 35,842,838
$ 82,226,670
$ 22.88 $ 35,842,838
Total-Tourists Expenditures
Lodging $ 74,630,000
Food & Beverage
Retail $ 78,455,350
$ 70,049,419
Transportation $ 30,821,744
Entertainmenl & Altractions
Total
$ 52,889,156
$ 306,845,669
Notes:
(1) Defined by the City of Carlsbad as day-trip visitors to LEGOLAND.
(2) Average of adult and child LEGOLAND admission price times .75 for discounts.
Source: Economics Research Associates
$ 74,630,000
$ 44,184,726
S 37,795,111
$ 7,541,923
$ 41,809,049
6 205,960,808
ESTIMATED ANNUAL FISCAL REVENUES FROM TOURIST EXPENDITURES (1999)
Table VI13
Annual Overnight-Visitor Days
Annual Day Visitors (1)
Annual Visitor-Days
2,153,004
1,566,900
3,719,904
Annual Carlsbad Carlsbad
Expenditures Tax Rate Taxes
Expenditure Taxes
Lodging $ 74,630,000 10% $ 7,463,000
Food & Beverage $ 44,184,726 1% $ 441,847
Retail $ 37,795,111 1% $ 377,951
Transportation $ 7,541,923 0% $
Entertainment &Attractions $ 41,809,049 0% $
Total Expenditure Taxes $ 205,960,808 $ 8,282,798
Notes:
(1) Defined by the City of Carlsbad as day-trip visitors to LEGOLAND.
Source: Economics Research Associates
Table VII-3
ESTIMATED ANNUAL FISCAL REVENUES FROM TOURIST-RELATED PROPERTY TAXES (1999)
Annual Overnight-Visitor Days
Annual Day Visitors (1)
Annual Visitor-Days
Property Taxes
Assessed Valuation Per County Assessor
Lodging
Time-share Condominiums
LEGOLAND
Total
Food, Beverage & Retail
Gross Revenue
Adjustment for Sales At Hotel Properties
Net Gross Revenue At Commercial Properties
Average Operating Expenses
Net Operating Income
Capitalizaton Rate
Estimated Total Assessed Valuation @ Mkt Rate
Proposition 13 Adjustment Factor (2)
Estimated Total Assessed Valuation
Total Assessed Valuation Before Personal Property
Unsecured Property (3)
Total Assessed Valuation
Property Tares
Total Assessed Valuation
Property Tax Rate
Total Property Taxes
City of Carlsbad's Share (4)
City of Carlsbad Property Tax Revenue
2,153,004
1,566,900
3,719,904
Annual Carlsbad Carlsbad
Exuenditures Tax Rate Taxes
Notes:
(1) Defined by the City of Carlsbad as day-trip visitors to LEGOLAND.
(2) Assumed ratio of assessed value vs. market value
(3) Based on LEGOLAND, Aviara Resort, and La Costa
(4) Based on weighted average of Legoland, Aviara, and La Costa tax rate areas.
Source: Economics Research Associates
$ 350,352,048
$ 99,666,118
$ 135,708,865
$ 585,727,031
$ 81,979,837
61% $ 49,753,333
$ 32,226,504 .~
60% $ 19,335,902
0 12,890,601
10%
$ 128,906,014
$
0.75
96,619,511
$ 682.406.542 .,
10% 68,240,654
$ 750,647,196
$ 750.647.196 ..
1%
$ 7,506,472
$
17%
1,253,581
Table VII-4
OTHER REVENUE ALLOCATION RATIOS
Revenue Revenue Revenue
Attributed to Attributed to Attributed to
Revenue Category Total Notes Residential Use Comrn.1 & Rec. Use Industrial Use
Franchise Tax
Fines
100% (1) 37% 37% 26%
100% (2) 78% 17% 5%
Notes:
(1) Assumed energy demand by land use.
(2) Distributed according to countywide vehicle registration (personal and commercial/industria1)
Source: Economics Research Associates.
Table VII-5
MISCELLANEOUS REVENUE INPUTS
Amended
FY99/00 Revenue Revenue Revenue
Budget Per Per Per
Revenue Cateogry ($millions) Resident $lm Comm./Rec. A.V. $lm Ind. A.V.
Franchise Tax
Fines
$2.03 $9 $640 $618
$0.82 $8 $119 $48
Total Other Revenue $2.85 $11 $159 $666
Citywide Factors:
Population 81,206
$1 million Commercial & Recreational A.V. $1,174
$1 million Industrial A.V. $854
Source: City of Carlsbad Operating Budget 1999-2000; S.D. County Assessor's Office; and Economics Research Associates.
Table VII-6
ESTIMATED TOTAL ANNUAL FISCAL REVENUES FROM TOURISM (1999)
Carlsbad
Taxes
TOT, Sales Taxes, and Property Tax Revenue
Transient Occupancy Tax Revenue $7,463,000 .. Food & Beverage Sales Tax Revenue
Retail Sales Tax Revenue
Property Tax Revenue
Total
Other Tax Revenue
Business License Tax Revenue (1)
Miscellaneous Revenue (2)
Total Other Tax Revenue
$441,847
$377,951
$1,253,581
$9,536,379
$63,997
$569,593
$633,590
Income From Investments (3) $345,779
Total Annual Fiscal Revenue From Tourism $10,515,748
Notes:
(1) Based on the following tax of gross receipts: Restaurants $0.35/$1,000;
(2) See Table VII-5
(3) Based on ratio of Income from InvestmentsMjeneral Fund Budget = 3.4%
Source: Economics Research Associates
Hotel & Motel, Retail, & Admissions $0.30/$1,000
Table VII-9
ESTIMATED NET FISCAL IMPACT FROM TOURISM (1999)
General Fund
Impact
Estimated Annual Fiscal Revenue From Tourism $10,515,748
Estimated Annual Fiscal Cost of Tourism
Cost Factor Per $1 million of Assessed Valuation $6,084
Estimated Tourism-Related Million Dollars of Assessed Valuation $751
Estimated Annual Fiscal Cost $4,566,949
Estimated Net Fiscal Impact From Tourism $5,948,800
Source: Economics Research Associates
lm ... ””“,. .,....... > ......... 1..
RECOMMENDATIONS
Section MII
This section presents recommendations for managing the City’s tourism industry and its impacts. -
As presented in Section VI, tourism generates an estimated $5.9 million in surplus revenue each
year to the City’s general fund. This surplus fiscal revenue gives the City additional resources to provide
services and better quality facilities to its residents.
Tourism, if managed well, also generates other direct and indirect quality-of-life benefits for
cities, such as the following:
* Employment opporlunities for people looking for part-time and seasonal jobs, such as
students, seniors, and parents who want to work part-time;
Full-time employment opportunities for unskilled and semi-skilled adults in the workforce;
* Private and public investment into city amenities that are attractive to tourists, but benefit
residents as well;
Fosters and expands a variety of quality cultural, dining, and recreational activities that serve
both residents and tourists;
Additional opportunities for small business owners;
Positive image-building for the City that can benefit other sectors of the economy;
Economic and fiscal benefits derived from a relatively “clean” industry. -
While tourism often generates net benefits, it can create costs. These costs can be mitigated or
avoided with proper planning, policies, and management. Examples of these potential costs include the
following:
Traffic, noise, air-quality, water-quality, and other environmental impacts associated with
additional people and cars that tourism brings to a city;
Seasonal congestion at popular locations that are attractive to residents and tourists;
Poor quality developments and activities attempting to exploit tourists;
Negative public image that can detract from other sectors of the economy;
1 ERA hjcd No. 13484
ourism Impnu Srudy - C@ of Carlrbad, Sourherm CaliJarnin VII1.l
Generally, low-paying jobs that do not provide a solid foundation for a broadly strong
economy;
Greater demand for affordable housing, given the industry’s average wage rates.
CY OF TO-
ERA has the following observations regarding the adequacy of Carlsbad’s tourism facilities:
Based on interviews with representatives of Carlsbad’s major attractions, resorts, and hotels,
the road and circulation system appears to be adequate in most cases. The possible
exceptions are Palomar Airport Road during peak season, and possibly Carlsbad Village
during certain special events. A focused traffic and parking analysis should be conducted for
these two areas.
Most tourists travel by car; however, there is very limited public transportation service
between Carlsbad’s major tourist destinations, providing few alternatives, at competitive
rates, to using a car. The City should evaluate the cost effectiveness of optional strategies for
providing alternative forms of transportation to tourists within the City.
The signage program could be improved to facilitate tourists’ ability to find a way to
Carlsbad several attractions, lodging, and shopping destinations. Thematic designs, the use
of public art, etc., can assist tourists and direct them to Carlsbad’s several tourist destinations.
Carlsbad has a pleasing image from the freeway, the route taken by most visitors to Carlsbad,
due to Carlsbad’s topography, lagoons, and quality development. However, the mix of
development, uncoordinated site plans, and discordinate architectural styles south of Palomar
Airport Road just east of 1-5, present a weak and cluttered image. The image portrayed here
is especially important given Palomar Airport Road’s role as a major access point for tourists
to some of Carlsbad tourist destinations.
The number of planned and proposed hotel rooms in the City appears adequate to
accommodate projected tourism growth during the next 5- to IO-year period. However, many
of the hotels that are planned or proposed are limited service, lower price point hotels. At the
other extreme, Aviar and La Costa are exclusive properties that are not affordable to most
people. While a hotel feasibility study is not within the scope of this study, it appears that
Carlsbad’s hotel offerings lack moderate-priced, full-service, three-star hotels.
While it appears that Carlsbad has adequate restaurant and retail square footage to serve the
tourist market, primarily in Carlsbad Village and the Company Stores shopping center,
Carlsbad lacks restaurants and shopping environments with ocean views, and should offer
more quality sit-down restaurants outside of the destination resorts.
Carlsbad may want to offer more night-time shopping and entertainment activities,
particularly in Carlsbad Village.
Based on interviews with event organizers, it appears that Carlsbad provides adequate
facilities and security during special events in most cases, except for possibly parking during
certain special events such as the Village Faire.
Carlsbad should establish a management information system for monitoring the local tourism
industry's performance, and the effectiveness of Carlsbad's investments in facilities and
marketing. An important input to this system would be a regular, periodic survey of tourists
within Carlsbad.
Tourism has been one of Carlsbad's first industries since the city's founding. Carlsbad has
become a major tourist destination today, primarily because of decisions initiated by major private
LEGOLAND, Four Seasons Resort at Aviara, and La Costa - and the City's investment in coastal
entities, with support from the City. Because of the three major tourist destinations in the City -
amenities and the Village, Carlsbad has developed an image as a quality tourist destination.
minimize its costs, ERA recommends that the City of Carlsbad prepare a tourism master plan that
To maintain and further develop this quality, and to maximize the benefits of tourism and
achieves the following:
Leads to the adoption of a tourism vision and policy;
Establishes tourism development and public standards for design and service;
Identifies areas in the City where tourism-related development and activities are encouraged,
and the infrastructure, amenities, and services are planned to promote cost efficiency;
Identifies areas in the City where tourism-related development and activities are discouraged;
Provides a strategy for linking the tourist from a market and circulation perspective,
destinations in order to increase tourists' length-of-stay and expenditures in the City,
particularly linkages between the City's lodging and specialty-retail/dining districts;
Provides a tourism circulation and transit system plan within the City;
Provides a cohesive tourism signage program in coordination with the City's sign ordinance;
Provides a strategy for special events to increase visitation during the off-season and to
manage the additional public services required during these events;
Builds upon and coordinates the marketing strategies and programs developed by the
Carlsbad Village Business Association, the Carlsbad Chamber of Commerce, and the San
Carlsbad Convention and Visitors Bureau, the private resort hotels, LEGOLAND, the
Diego North Convention and Visitors Bureau;
Creates a tourism data base and management information system, supported by regular tourist
surveys, to monitor the tourism industry in Carlsbad and to facilitate targeted marketing;
Establishes priorities for the City's investment in tourism infrastructure, marketing, and
services;
Develops strategies for matching job and career opportunities with targeted worker
populations;
Economics Research Associates
CARLSBAD TOURISM
SURVEY RESULTS
Submitted to:
CITY OF CARLSBAD
Prepared by:
Economics Research Associates
January 22, 2002
ERA Project No. 14040
...........................
TABLE OF CONTENTS
General Limiting Conditions ........................................... i
I . Introduction ......................................................... 1
I1 . Resident survey .................................................. 4
I11 . Tourist Survey .................................................. 23
Appendix A - Survey Questionnaires ......................... A-1
Appendix B - Resident Survey Frequency Data ......... B-1
Appendix C - Tourist Survey Frequency Data ........... C-1
GENERAL LIMITING CONDITIONS
Every reasonable effort has been made to ensure that the data contained in this study reflect
the most accurate and timely information possible, and they are believed to be reliable.
This study is based on estimates, assumptions and other information reviewed and
evaluated by Economics Research Associates from its consultations with the client and the
client's representatives and within its general knowledge of the industry. No responsibility
is assumed for inaccuracies in reporting by the client, the client's agent and representatives
or any other data source used in preparing or presenting this study.
This report is based on information that was current as of January 2002 or as noted in the
report, and Economics Research Associates has not undertaken any update of its research
effort since such date.
No warranty or representation is made by Economics Research Associates that any of the
projected values or results contained in this study will actually be achieved.
Possession of this study does not carry with it the right of publication thereof or to use the
name of "Economics Research Associates" in any manner without first obtaining the prior
written consent of Economics Research Associates. No abstracting, excerpting or
summarization of this study may be made without first obtaining the prior written consent
of Economics Research Associates. This report is not to be used in conjunction with any
public or private offering of securities or other similar purpose where it may be relied upon
to any degree by any person other than the client without first obtaining the prior written
consent of Economics Research Associates. This study may not be used for purposes other
than that for which it is prepared or for which prior written consent has first been obtained
from Economics Research Associates.
This study is qualified in its entirety by, and should be considered in light of, these
limitations, conditions and considerations.
1. INTRODUCTION
This report presents the key findings of a survey designed to help the City of Carlsbad
improve entertainment and recreational opportunities for its residents and visitors. The
survey consisted of two questionnaires, one for Carlsbad residents and one for visitors,
which were administered by the Social and Behavioral Research Institute (SBRI) at
California State University, San Marcos. These questionnaires can be found in Appendix
A.
Key findings from the resident survey are presented in Section I1 and key findings from the
tourist survey are presented in Section 111. The frequency tables and cross-tabulations can
be found in Appendices B and C while cross-tabulation data are presented in the addendum
to this report.
Based on the survey results, Carlsbad should consider the following as it plans leisure
activities in the city:
. Carlsbad Village is a popular and frequently visited location among residents and well
liked by tourists. The beach was cited as the characteristic people like most about
Carlsbad as a place for recreation and entertainment, followed by “Village
Atmosphere” and “Climate.” Linking Carlsbad Village to the oceanfront, through
urban design, land uses, and marketing, will enhance the attraction power of the
Village and the oceanfront.
Adding dining, shopping, and entertainment attractions to the Village, without
diminishing its comfortable scale, would also enhance its popularity.
- Residents go to the movies much more often than they go to the movies in Carlsbad,
implying that they frequently leave the city to see movies. There may be an
opportunity to capture a higher share of movie theater visits within Carlsbad.
. It appears that a minority of residents visit Carlsbad’s two premier destination resorts -
the Four Seasons at Aviara and La Costa. Also, very low shares of visitors at other
tourist spots in the city, besides these resorts, visit Aviara and La Costa. This situation,
perhaps, is not surprising given that Aviara and La Costa are designed as destination
resorts where many guests come specifically to stay, exclusively. However, an
oppoltunity may exist for Aviara and La Costa to better penetrate the resident and
general tourist markets, as the Hotel del Coronado does, if consistent with each resort’s
marketing philosophy. Also, other attractions and destinations in Carlsbad may better
attract guests who are staying at these two destination resorts.
9 Traffic and overcrowding were most often cited as negative conditions; however, the
proportion of residents who cited these conditions was relatively low. “No
Complaints” rated higher than these two conditions. Still, traffic circulation should be
monitored and addressed in the City’s leisure zones.
. Residents cited golf, performing arts, and aquatics most often as desired new leisure
activities among the list of activities mentioned. The need for new movie theaters and
a new restaurantlshopping complex were less frequently cited. If the City pursues to
expand its theater and dining offerings, it may want to expand existing locations rather
than create a new location.
. Given the much higher proportion of tourists with children than without children,
family activities and dining are important additions.
PROJECT NO. TU040
- The top choice for a new restaurant among both residents and tourists was a seafood
restaurant. Steakhouse, cultural/ethnic, family style, and Italian were also in the top
five mentioned. The City should consider encouraging the development of a quality
seafood restaurant in an oceanfront location.
9 Out-of-town guests who are staying with friends are a potentially large and often
overlooked source of tourists. A plurality of visitors to Carlsbad heard about Carlsbad
through family and friends. The City should consider a marketing campaign to the
region’s residents about the activities available to tourists in Carlsbad.
= The percentage of visitors surveyed who were with organized groups was low. An
opportunity may exist to increase Carlsbad’s penetration of the group market.
PROJECT NO. 74040 3
11. RESIDENT SURVEY
This section presents the results from the survey of Carlsbad residents regarding leisure
activities in Carlsbad, basic demographic characteristics of the survey respondents and a
cross-tabulation analysis.
METHODOLOGY
Telephone interviewing commenced on May 21, 2001 and was concluded on June 30,
2001. Five hundred eleven interviews were conducted with adults residing in the City of
Carlsbad, evenly split between the 92008 and 92009 zip codes. Interviews averaged 12
minutes in length.
All telephone calls were made from the SBRl Survey Lab, located in Suiie 140 of the San
Marcos City Hall, near the CSUSM campus. Telephone calls were generally placed from
1:00 p.m. to 8:30 p.m., Monday through Thursday, 1:OOpm to 4:30pm Friday, 10:OOam to
6:OOpm Saturday, and 1:OOpm to 8:OOpm Sunday. All telephone calls were made under the
guidance of SBRI supervisory staff. SBRI's supervisory staff conducted on-line
monitoring of survey calls throughout the project, both to verify the validity of the calls
and for quality control purposes. A total of 13,713 telephone calls were made during the
process of the project. A Response Rate of 45.5% (AAPOR RR4) and a Cooperation Rate
of 89.5% (AAPOR COOP4) were achieved for the telephone survey. The Response Rate
represents the proportion of all possible household telephone numbers called that
completed an interview. Telephone numbers that were thought to be household numbers
were attempted a minimum of seven times before they were retired. The Cooperation Rate
represents the proportion of confirmed household contacts that completed an interview.
KEYFINDINGS
The following key points were observed from the survey results:
PROJSCT No. 74040 RESIDENT sunvev 4
9 Approximately 60 percent of residents have never been to LEGOLAND, but 29
percent visit once a year or more. Over 13 percent are frequent visitors, visiting three
or more times per year.
The Flower Fields are more popular, with over 55 percent visiting them at least Once
per year.
A majority of those surveyed have never visited the major resort hotels in Carlsbad.
Over 63 percent have not visited La Costa and almost 53 percent have not visited
Aviara. Still, nearly 26 percent visit La Costa and 40 percent visit Aviara at least once
per year.
. Carlsbad Village is a popular and frequently visited location. Over 47 percent visit
Carlsbad Village at least once a week, and an additional 25 percent visit once a month.
Over 88 percent visit three or more times per year.
Both Plaza Camino Real and Carlsbad Company Stores are popular shopping
destinations, with Plaza Camino Real the more popular. Over 85 percent of
respondents visit Plaza Camino Real at least three or more times per year, and 65
percent visit at least once per month. Approximately 74 percent visit The Carlsbad
Company Stores three or more times per year, and almost 46 percent visit at least once
per month. Interestingly, Carlsbad Village is more frequently visited than Plaza
Camino Real or The Carlsbad Company Stores.
Local Aetivlhes ..
The most popular activities in terms of proportion of people who take part at least once
per month are as follows in order of popularity:
PROJECT No. VU040 RES~PENT SURVEY 5
9 Dinner at a Restaurant Anywhere (92%)
P Dinner at a Restaurant in Carlsbad (85%)
9 Beach Activities (72%)
9 Movies Anywhere (53%)
9 Movies in Carlsbad (32%)
9 Hike on Trails in Carlsbad (26%)
9 Golf in Carlsbad (8%)
Approximately 5 percent or less visit the Cannon Art Gallery, Historic Depot and
Visitors Center, Museum of Making Music, and Gemology Museum three or more
times per year.
ad as a Place
The five characteristics that respondents like most about Carlsbad as a place for
recreation and entertainment are as follows:
9 Beach (40%)
9 Village Atmosphere (13%)
9 Climate (12%)
9 Other outdoor Activities (10%)
P Ambience (8%)
Less than five percent cited nightlife, and only 1 percent cited shopping as major reasons.
The five charactenstics that respondents like least about Carlsbad as a place for
recreation and entertainment are as follows:
% Trafic (23%)
PROIEC~ No. 74040 RESIPEIYT SURVEY
9 Overcrowded (1 8%)
b Not Enough Theater - Live or Film (5%)
> Not Enough Restaurants (5%)
b Not Enough Public Sports Facilities (5%)
Despite these areas for improvement, the most frequently cited answer was “Nothind
have No Complains” (24%).
1 The ten most common new leisure activities that were suggested for Carlsbad are:
b Golf Course (14%)
k Performing Arts Center (10%)
b Aquatic Center/Pool(9%)
9 Movie Theater (6%)
b Hiking Trails (6%)
> A New Park (6%)
b Biking Trails (6%)
b Sports Centers (4%)
b Restaurant/Shop Complex (3%)
b Tennis Courts (3%)
9 The five most popular places to dine when children are in the party include the
following:
PlOJCCr NO. 74040 RESIDENT Survrr 7
D Ruby’s (5.3%)
D Soup Plantation (5.1%)
> Fidel’s (4.5%)
D Claim Jumper (3.5%)
D Oscars (6%)
Approximately 23 percent of respondents who answered this question stated that they
never dine with children.
The five most popular places to dine when there are no children in the party include the
following:
D Fish House Vera Cruz (5.5%)
D Restaurants at the Four Seasons (4.3%)
9 Vigilucci’s (4.1%)
> Fidel’s (3.7%)
D The Chart House (3.5%)
9 The five most popular choices for a new restaurant in Cal
answered the question include the following:
D Seafood (12.4 %)
D Steakhouse (10.4%)
> Cultural or Ethnic (1 0.4%)
> Family Style (9.9%)
> Italian (9.7%)
rlsba Id among those v vho
PROIECr NO. I6040 RESIDENT Sunvcr 8
People like the Village. On a scale of 1 (poor) to IO (excellent), approximately 74
percent rated Carlsbad Village a 7 or higher, almost 23 percent rated the Village 4-6,
and only 3 percent rated the VilIage 3 or less.
When asked why they did not rate the Village higher, the two most frequent responses
were that the Village had too few dining, shopping and entertainment attractions
(38%), and that other places offer more variety (19%).
9 Besides Carlsbad, the five most popular places for dining and entertainment cited were
as follows:
> Encinitas (23%)
> Gaslamp Quarter (14%)
> Restaurant Row - San Marcos (13%)
> Del Mar (12%)
> Oceanside (12%)
Interestingly, La Jolla did not rate higher. At 11.6 percent it rated slightly lower than
Oceanside.
. The second most popular places for dining and entertainment cited were as follows :
P Encinitas (1 6%)
> Del Mar (15%)
PROJECT No. 14040 RESIDENT SunvEr 9
P Gaslamp Quarter (13%)
P La Jolla (10%)
P Restaurant Row - San Marcos (10%) . The third most popular places for dining and entertainment cited were as follows :
D Gaslamp Quarter (1 7%)
P Encinitas (9%)
P La Jolla (8%)
> Oceanside (7%)
> Restaurant Row - San Marcos & Del Mar (7%)
Over 66 percent said that they do not prefer these competing locations to Carlsbad
destinations, while 34 percent do prefer these other areas. Of those that prefer other
locations, the main reasons were greater variety of activities, greater variety of
restaurants, and different environment.
When asked how often they might visit a centralized entertainment center if one were
built in Carlsbad, over 94 percent said at least once per month (42 percent said once
per month and 52 percent said more often) and only 6 percent said never.
The Downtodillage Area was the most popular location for a new entertainment
center, cited by 17 percent of respondents, followed by El Camino RealNorth Of Alga
Road (12%), near the AirporULegoland (1 I%), a coastal location near the beach (1 I%),
and “Nowhere” (9%). The Carlsbad Company Stores was cited by less than 5 percent
of respondents.
PIIOICCT NO. 14040 TO
9 Over 95 percent of resp,ondents have out-of-town guests visit them each year. Over 77
percent have between 1-6 visits per year, with 2 visits per year the most frequent
response.
Approximately 84 percent of guests stay at the Carlsbad resident's home, over 11
percent stay at a hotel in Carlsbad, and less than 3 percent stay at a hotel outside
Carlsbad.
= The most popular places to take guests were as follows:
> The Beach (55%)
> Downtodillage Area (19%)
> Flower Fields (9%)
> Legoland (6%)
> Restaurants (3%)
The Carlsbad Company Stores were cited by only 2.5 percent of respondents, while the
major resort hotels were cited by only 1.9 percent of respondents.
1 The second most popular places to take guests were as follows :
> DowntownNillage Area (25%)
> The Beach (24%)
P Flower Fields (13%)
> Carlsbad Company Stores (12%)
> Legoland (1 0%)
PROJECT No. 14040 RESIDENT Surv~v 11
The major resort hotels were cited by only 1.6 percent of respondents.
When asked if leisure and entertainment destinations would enhance Carlsbad's quality
of life, 85 percent agreed or strongly agreed, while less than 15 percent disagreed or
strongly disagreed.
* When asked if Carlsbad should plan and encourage new leisure and entertainment
destinations within the city, 66 percent agreed or strongly agreed, while almost 26
percent disagreed or strongly disagreed.
-c Characteristics Of Survev R-
As discussed in the methodology section, the resident survey was based on a random
sample of heads of households ages 18 and over. The basic demographic characteristics of
participants in the resident survey imply the following about Carlsbad's adult residents:
Carlsbad residents are older. Over 28 percent of survey respondents were ages 50-65,
and an additional 16 percent were over 65. In contrast only 11 percent of survey
participants were ages 18-29 and less than 20 percent were ages 30-39.
* Carlsbad residents are relatively wealthy. Nearly 14 percent of survey respondents
reported an annual household income of $150,000 or greater, and an additional 23
percent reported household earnings of $100,000-149,999 annually. Still,
approximately 27 percent of those surveyed reported household incomes of less than
$50,000, half of those earning less than $35,000 per year.
. Carlsbad residents are very well educated. One quarter of survey participants reported
having post-college graduate education, and 38 percent hold a college degree. In
PROJECT NO. 14040 RESIDENT SURVEY 72
contrast, less than 10 percent of respondents reported having a high school diploma or
less.
Carlsbad residents are predominantly Non-Hispanic Whites. Over 82 percent of
residents surveyed identified their ethnic background as Non-Hispanic White, while
only 8 percent identified themselves as Hispanic, 6 percent as Asian American or
Pacific Islander and less than 1 percent African American.
Carlsbad residents are basically evenly divided between new residents and long-time
residents. While nearly 36 percent of survey respondents indicated that they had lived
in Carlsbad for 11 years or more, 35 percent responded that they had lived in Carlsbad
less than 3 years, and just under 30 percent had lived in Carlsbad between 4 and 10
years.
Responses to each of the survey questions were examined using cross-tabulations
(contingency analysis), a statistical technique that identifies relatibnships between
variables. The following three variables were examined using this technique:
Length of residency
9 Respondent's zip code . Presence of children in the household
The purpose of this analysis is to determine whether (and how) the responses of one subset
of those surveyed differ from those of another (i.e. a difference between those from 92008
and 92009). It is important to note that this analysis does not indicate causality. Instead,
PROJECT No. 14040 RESIDENT Surrvrr
it indicates the likeliness that a difference in responses between two groups is not due to
chance (randomness).'
Each survey question was tested against length of residency to determine whether the
responses longtime residents (11+ years), medium-term residents (4-10 years) and newer
residents (3 years or less) differed significantly. In several cases, their responses differed
significantly, as presented below:
The longer respondents had lived in Carlsbad, the less frequently they visited
LEGOLAND.
More longtime residents visit Carlsbad Village at least once a week than those who
have lived in Carlsbad for less time.
Length of residency shares a positive relationship with visitation of the Aviara Resort.
Approximately 61 percent of those who have lived in Carlsbad for less than 3 years
have never visited the resort, while smaller percentages of longer-time residents have
never been there. Still, Carlsbad residents of 1 lyears or longer are only slightly more
likely to visit the facility at least once a year, 25 percent compared with 24 percent for
4-10 year residents and 19 percent for those who have lived in Carlsbad for 3 years or
less. - Though the relationship between length of residency in Carlsbad and how often the
respondent shops at the Carlsbad Company Stores is statistically significant (not likely
due to randomness), the precise pattern is difficult to determine. Greater percentages
of longtime residents visited the Carlsbad Company Stores 3 or more times a year or
' Survey questions with a Chi-square value less than .OS were considered statistically significant and arc discussed in this report.
PnoJecT No. 14040 RESIDENT Sunver 14
at least once a year than newer residents. The newest residents on the other hand, are
far more likely to visit at least once a month. Comparable percentages of longtime,
medium-term and newer residents have never shopped at these outlets (9-12%).
. Newer residents of Carlsbad are three times as likely to have never shopped at Plaza
Camino Real than medium-term or longtime residents.
9 Those who have moved to Carlsbad more recently participate more frequently in
beach activities, and those who have lived in Carlsbad the longest are most likely to
never or rarely participate in beach activities.
. The highest percentage of survey participants who responded that they have no
complaints about Carlsbad was among newer residents (29%) and the lowest
percentage was among medium-term residents (24%). Traffic bothers more longtime
residents than newer or medium-term residents, while newer residents are more
concerned with the lack of restaurants and theater and live film than medium-tern and
longtime residents are.
Length of residency exhibits a negative relationship with frequency of hiking on trails.
Newer respondents generally report hiking at least once a week or at least once a
month, middle-term residents generally report hiking three or more times a year, at
least once a year and less than once a year while longtime residents generally respond
that they never go hiking in Carlsbad.
Approximately 86 percent of newer Carlsbad residents responded that they have never
been to the Carlsbad Historic Depot and Visitor Center, compared with 74 peicent of
medium-term residents and 62 percent of longtime residents.
PROJECT NO. 74040 RESIDENT SURVCY I5
When asked to name their favorite place to go when children are in their party, newer
residents responded much more frequently than medium-term and longtime residents
that they never dine with children. Newer residents also show a stronger preference
than other residents for Chuck E. Cheese, Pizza Port, and Sammy’s. Medium-term
residents prefer Chili’s, Islands, Oscar’s and Ruby’s while longtime residents favor
Claim Jumper, Fidel’s, Soup Plantation and Spiritos.
* Longtime Carlsbad residents more often named a stakehouse, family style, French,
healthfoodvegetarian, or Japanese as their choice for a new restaurant in Carlsbad.
Medium-term residents preferred seafood, Mexican, Thai, Chinese and Indian for a
new restaurant. Newer residents expressed a preference for cultural/ethnic,
Cheesecake Factory, theme restaurant, and Italian more often than the other groups
did.
. More newer residents than medium-term and longtime residents like to show visitors
the Downtown Village area and Carlsbad Company Stores while longtime residents
like to take their guests to restaurants. Medium-term residents prefer to take visitors
to LEGOLAND and resort hotels.
9 Longtime Carlsbad residents were also more likely than others to disagree and
strongly disagree with the statement, “Carlsbad should plan and encourage new leisure
and entertainment destinations within the City.’’ Approximately 13 percent of
longtime residents strongly disagreed with the statement, compared with only 7
percent of medium-term residents and only 1 percent of newer residents.
Approximately 23 percent of longtime residents disagreed with the statement,
compared with 18 percent of medium-term residents and 15 percent of newer
residents. In contrast, 44 percent of newer residents agreed with the statement,
compared with 40 percent of medium-term residents and 38 percent of longtime
residents. Additionally, 30 percent of newer residents strongly agreed with the
PROJECT No. 74040 RESIDENT SURVEV 76
statement, compared with 28 percent of medium term residents and only 21 percent of
longtime residents.
. Longtime residents were also more likely than others to disagree and strongly disagree
with the statement, “Leisure and entertainment destinations enhance Carlsbad’s
quality-of-life for its residents.” Approximately 6 percent of longtime residents
strongly disagreed with the statement compared with less than 3 percent of medium-
term residents and less than 1 percent of newer residents. Approximately 16 percent
of longtime residents disagreed with the statement compared with 12 percent of
medium-term residents and 6 percent of newer residents. Newer residents, on the
other hand, were most likely to agree or strongly agree with the statement. Nearly 53
percent of newer residents agreed with the statement compared with 48 percent of
medium-term residents and 40 percent of longtime residents. An additional 32 percent
of newer residents strongly agreed with the statement, compared with only 24 percent
of medium-term residents and 28 percent of longtime residents.
Each survey question was tested against the respondent’s zip code to determine whether
there were significant differences in responses between residents of 92008 and 92009.
Significant results are presented below:
. Respondents living in the 92008 zip code are far more likely to visit Carlsbad Village
weekly than residents of 92009 (70 percent for the former versus 25 percent for the
latter). Still, 33 percent of 92009 residents visit the center at least once a month and
an additional 24 percent visited at least 3 times per year. A very small percentage of
residents, less than 1 percent for 92008 and 3 percent for 92009 never shop at
Carlsbad Village.
PROJECT No. 74040 77
9 Residents of the 92009 zip code visit the La Costa Spa and Resort more often than
residents of 92008. More residents in the 92008 zip code have never visited the La
Costa Spa and Resort than residents from 92009.
Zip code is also related to visitation of the Aviara. More residents of 92008 have
never visited the Aviara compared with residents of 92009 (61 percent for the former,
44 percent for the latter). Higher percentages of residents of 92008 responded that
they visit the Aviara at least once a week, at least once a month, three or more times a
year and at least once a year than residents of 92009 did.
. Zip code also proved to have a relationship with visitation of the Carlsbad Company
Stores. Residents of 92009 visited more often while a higher percentage of residents
of 92008 had never visited the stores.
. Residents of the 92008 zip code shopped at Plaza Camino Real more often than
residents of 92009, and twice as many residents of 92009 had never shopped there
compared with residents of 92008.
9 More residents of 92008 responded that they engage in beach activities at least once a
week or never while more residents of 92009 reported engaging in beach activities at
least once a month or three or more times per year.
. More residents of the 92009 zip code reported going to the movies at least once a
week or at least once a month while residents of 92008 reported visiting the movies
less frequently (three or more times a year, at least once a year or less than once a
year). In fact, and nearly one-third reported that they never go to the movies
(compared with 22 percent of 92009 residents).
PROJECT No. 14040
. A higher percentage of 92008 eat dinner at a restaurant at least once a week while
higher percentages of 92009 eat out at least once a month, three or more times a year
and at least once a year.
. Residents of the 92009 zip code go hiking on trails more frequently than their 92008
counterparts.
Residents of 92008 reported visiting the Carlsbad Historic Depot and Visitor Center
more often than residents of 92009, and far more residents of 92009 reported never
having been.
Regarding the characteristics that respondents like Zeasf about Carlsbad as a place for
recreation and entertainment, more residents of 92009 chose overdrowdedness, not
enough public sports facilities, not enough restaurants and not enough theater (live and
film). At the same time, more residents of 92008 chose traffic, cost and tourists as
their biggest complaint. Roughly equal percentages of 92008 and 92009 residents
responded that they had no complaints (approximately 24 percent each).
When dining out with children, residents of 92008 chose the following restaurants
more often than residents of 92009 did: Chuck E. Cheese, Fidel’s, Marie Callendar’s,
McDonalds, Pizza Port, Soup Plantation and Spiritos. Residents of 92009 chose
Claim Jumper, Islands, Oscar’s, and Ruby’s. Additionally, residents of 92009 were .
more likely to respond that they never dine with children than their 92008 counterparts
were.
9 When no children are in their party, a higher percentage of respondents from 92008
than 92009 stated that they ate at the Chart House, Chin’s, Claim Jumper, Fidel’s, Fish
House Vera Cruz, and Coyote Bar and Grill. Residents of 92009 more 0th
PROJECT No. 70040 RESIDENT SURVEY 19
responded that they ate at Belle Fleur, The Beach House, Jake’s, Vigilucci’s, Jay’s
Gourmet, Tuscany and restaurants at the Four Seasons.
. Residents of the 92008 zip code gave Carlsbad Village higher ratings as a place to
visit for leisure, dining, shopping and entertainment while residents of 92009 gave
Carlsbad Village much lower ratings.
. More respondents of 92008 than 92009 stated that they most often visit La Jolla,
Encinitas, Del Mar, and Solana Beach for dining and entertainment outside of
Carlsbad. More respondents of 92009 than 92008 stated that they most often visit the
Gaslamp Quarter, Oceanside, and La Costa.
. The primary destinations residents of 92008 like to show their visitors are the beach,
DowntownNillage area, and restaurants while residents of 92009 like to take visitors
to the Flower Fields, Carlsbad Company Stores/Outlets, LEGOLAND, and resort
hotels.
. Residents of 92008 are more likely than residents of 92009 to disagree or strongly
disagree with the statement, “Carlsbad should plan and encourage new leisure and
entertainment destinations within the city.” Residents of 92009 are more likely to
agree or strongly agree.
Each survey question was tested against the presence of children in the household to
determine whether there were significant differences in responses between these two
groups. Significant results are presented below:
PROJECT NO. va040 RESIDENT SURVEY 20
1 Respondents with children in their household visited LEGOLAND far more often than
those without.
9 Members of households with children were more likely to visit the Flower Fields at
least once a year than those without children. In contrast, those without children were
more likely to visit often (once a week, once a month or three or more times per year)
than those without. They were also slightly more likely to never have visited the
Flower Fields (47 percent for those without children, 40 percent for those with).
9 Households with children shop at the Carlsbad Company Stores more often than those
without children, and a far higher percentage of households without children have
never shopped at the outlets.
Households with children visited the beach more often than those without. In fact, 14
percent of respondents from households without children reported never participating
in beach activities compared with less than 2 percent of respondents from households
with children.
9 Households with children visit the movies more often than those without children.
Though similar percentages of respondents from households with and without children
reported going to the movies at least once a week and at least once a month, more
respondents with children in the household reported going to the movies 3 or more
times per year and at least once a year. At the same time, a higher percentage of
respondents from households without children reported never going to the movies.
. Respondents from households without children are more likely than those with
children to respond that they go hiking in Carlsbad at least once a week, but are also
more likely to respond that they never hike.
PROJECT No. 74040 RCSIOENT SURVEY
r‘onomir. I .... rtk a.‘O.l.t..
1 Though most households both with and without children reported never going to the
Gemology Museum, a higher percentage of families with children reported never
having been (94 percent for those with versus 88 for those without).
Households with children like different recreation characteristics than those without
children. Of the two groups, a higher percentage of households with children
mentioned the beach, other outdoor activities and nightlife as what they like most
about Carlsbad for recreation and entertainment. Conversely, a higher percentage of
families without children named the climate, the people, village atmosphere, and
ambience as Carlsbad’s best characteristic for recreation and entertainment.
When asked to name their choice for a new leisure activity, more respondents from
households without children than with chose a skatepark, golf courie, movie theater,
performing arts center, biking trails, sports centers, horseback riding and tennis courts.
Households with children favored a restaurandshop complex, waterpark, museum,
aquatic center/pool, and a new park.
Respondents with no children in the household more frequently disagreed or strongly
disagreed with the statement, “Leisure and entertainment destinations enhance
Carlsbad’s quality-of-life for its residents” than did those with children in the
household. Conversely, households with children were more likely to agree and
strongly agree with the statement.
PROJECT NO. 14040
111. TOURIST SURVEY
This section presents the preliminary results from the survey of Carlsbad tourists regarding
leisure activities in Carlsbad.
The Social and Behavioral Research Institute at California State University San Marcos
conducted intercept surveys for the Carlsbad Tourism Survey. Data were collected in two
phases; Phase One began June 10,2001, and ended July 7,2001. Phase Two began August
29, 2001 and ended September 29, 2001. Phase One data were collected from Carlsbad
City Beach, Carlsbad Village, The Carlsbad Company Stores, Holiday Inn, Grand Pacific
Hotel, and Legoland. Phase Two data were collected from Carlsbad City’Beach, Carlsbad
Village, The Carlsbad Company Stores, Holiday Inn, and Legoland. Researchers were not
able to conduct the survey at the Aviara due to a company policy that would have required
that a different survey (one generated by the Aviara) be used. It was determined that the
data gathered from such a survey would be incompatible with SBRI’s survey. Researchers
were also unable to administer the survey at La Costa, as they were not able to obtain
permission from the management.
Potential respondents were approached by interviewers and asked if they were residents of
San Diego County. A response of “no” qualified the potential respondent. Potential
respondents who responded that they were San Diego County residents were asked if they
had stayed overnight in Carlsbad. A response of “yes” qualified San Diego County
residents for participation. Participants were then handed a clipboard with a questionnaire
and pencil. For most participants, self-administration took from 10 to 15 minutes.
Interviewers asked questions of and completed questionnaires for participants who were
unable to adequately read the English language or were carrying children. A total of 1,595
tourists participated in this survey.
TOURIST SURVEY 23
The following key points were observed from the survey results:
a LEGOLAND, the beach, Carlsbad VillagelDowntown Carlsbad and the Carlsbad
Company Stores are the most popular tourist attractions/activities. Nearly 55 percent
stated that they had visited or planned to visit LEGOLAND, 51 percent had visited or
planned to participate in beach activities or look at the ocean, 33 percent had visited or
planned to visit Carlsbad VillagelDowntown Carlsbad, and nearly 29 percent had
visited or planned to shop at the Carlsbad Company Stores.
Other attractions that tourists had visited or planned to visit include:
P Movies (7%)
b Flower Fields (6%)
> Golf(6%)
> Hiking on trails (4%)
> Historic depot and visitors center (4%)
> A museum (3%)
9 Other outdoor activities (2%)
The results of the survey show that few visitors had visited or planned to visit resorts
such as the Aviara (2%) and La Costa (I%), however, these percentages were probably
influenced by the fact that surveys were not conducted at these resorts. Taking this
factor into consideration, the responses indicated that only a small share of visitors at
other destinations in Carlsbad were staying at the two major resorts.
PROJECT No. ?8040 TOURIST SURVEY
Soending Patterns
* Approximately 90 percent of tourists surveyed planned to spend an average of $100
per person per day or less on food while 57 percent planned to spend an average of $50
or less per person per day. The weighted average for daily food expenditures was
$68.50 per person.
9 Two-thirds of tourists surveyed planned to spend an average of $120 per day or less on
lodging, one-third planned to spend less than $50 per day on lodging and 26 percent
did not expect to spend any money on lodging. The weighted average for hotel
spending was $103.50 per day.
One-third of tourists planned to spend $30 or less per day shoppihg, and the vast
majority planned to spend less than $100 shopping (86%). The weighted average of
responses was $80.50. -
Most tourists surveyed planned to spend less than $100 per day on entertainment while
in Carlsbad and just over half of tourists surveyed planned to spend an average of $60
per day on entertainment. The weighted average of planned entertainment spending
was $80.80.
9 Approximately 25 percent of tourists surveyed expected to spend an average of $5 or
less per day on gas, 46 percent expected to spend $10 or less and just over 80 percent
expected to spend $30 or less on gas. The weighted average was $22.62.
Nearly 24 percent of respondents did not plan to spend any money on admissions to
theme parks, museums and similar attractions over the course of their stay in Carlsbad,
one-third planned to spend $60 or less and another third expected to spend between
$60 and $120. The weighted average was $1 12.75.
PROJECT NO. 14040 TOURIST Survrr
9 Over 82 percent of those surveyed did not plan to spend any money golfing during
their visit. The majority of those who did plan to spend money golfing expected to
spend $100 or less.
. More than 90 percent of respondents planned not to spend any money on spa fees
during their visit. The majority of the remaining 10 percent of respondents planned to
spend between $100 and $200 on spa fees during their visit.
. Public transportation is not frequently used by tourists. Approximately 82 percent had
not used public transportation or private shuttles while in Carlsbad and only 10 percent
had used such forms of transportation more than three times during their stay.
Nearly 54 percent of tourists surveyed were visiting other places in the San Diego
region during their vacation. Roughly one-third of visitors were spending 3 days and 2
nights or less in the region, and two-thirds were spending up to 5 days and 5 nights in
the region. Only 8 percent were day visitors, with the remainder spending at least one
night in the region.
9 For visitors not staying in Carlsbad, 33 percent stated that this was because they had
friends and family elsewhere and 29 percent stated that they wanted to stay closer to
other locations.
Attractions outside Carlsbad that respondents planned to visit included:
P San Diego Zoo (41%)
P Beaches (40%)
> Sea World (37%)
PROJECT NO. V4040 26
P Old Town San Diego (27%)
P Downtown San Diego (27%)
9 La JollaDel Mar (25%)
9 San Diego Wild Animal Park (22%)
> Balboa Park (20%)
> Mission Bay (17%)
9 Coronado (17%)
> Disneyland (1 7%)
9 Mexico (12%)
P Los Angeles/Hollywood (10%)
9 Knott's Berry Farm (6%)
9 Golf course (5%)
What Visitors Would Like to See Ad-
When asked to state their choice for a new restaurant in Carlsbad, 17 percent
responded that they would prefer a seafood restaurant, 14 percent indicated a
preference for a Mexican restaurant, 10 percent favored a family style restaurant and 8
percent would prefer an Italian restaurant.
. When asked to state the restaurant where they last dined, 10 percent said Fidel's, 9
percent said McDonalds, 9 percent said TGI Friday's, and 7 percent said Fish House
Vera Cruz. 14 percent of respondents stated that they had last eaten in a Mexican
restaurant that was not listed on the survey.
PnoJEcr No. 74040 27
’ Half of the survey participants indicated that the activities available in Carlsbad were
the primary reason they came to Carlsbad. An additional 24 percent stated that the
activities available was a secondary reason.
- When asked to name the activities they wish were in Carlsbad, 29 percent of
respondents stated that they are content with current offerings. 20 percent stated that
they would like to see watersports facilitiesheach activities, 9 percent would like more
nightlife/dancing, 8 percent would like more parkshails, 4 percent would like more
restaurants, and 4 percent would like a movie theater.
Tourists surveyed were content with their choice of destination. Approximately 38
percent stated that Carlsbad had exceeded their expectations and an additional 61
percent stated that Carlsbad was about what they expected. Only 1 percent of tourists
surveyed stated that Carlsbad had failed to meet their expectations. - Survey participants indicated that they like the following features of Carlsbad the most:
> BeacWOcean (30%)
9 Atmosphere (1 9%)
9 LEGOLAND (1 8%)
9 WeatherKlimate (13%)
9 The people (6%)
9 Shopping (4%)
Participants responded that they liked the following features of Carlsbad the least:
> Traffic (23%)
PROJLCT NO. 74040 TOURIST SURVEY 28
9 Nothing (20%)
9 Crowds (8%)
9 Prices (8%)
9 Not enough restaurantdactivities (6%)
9 Parking (3%)
Nearly 70 percent of survey participants indicated that they were very likely to return
to Carlsbad during the next five years and an additional 24 percent stated that they
were somewhat likely to return during that period. Only 1 percent of respondents
indicated that they were not at all likely to return within five years.
. Carlsbad visitors appear to have higher than average incomes. Only 11 percent of
those surveyed stated that they had an annual household income of less than $35,000.
In contrast, 31 percent indicated that they had an annual household income between
$35,000 and $74,999, and 58 percent have an annual household income of $75,000 or
greater.
9 Carlsbad visitors also appear to be relatively well educated. 37 percent hold college
degrees and 29 percent hold graduate degrees. Only 10 percent have a high school
diploma or less.
. The majority of visitors surveyed identified their ethnicity as Non-Hispanic White
(71%). Only 12 percent indicated that they were Hispanic or Latino, 12 percent Asian
or Pacific Islander, 3 percent African American, 2 percent Native American.
PROJCCT NO. f4040 TOURIST SuRvrr 29
Size and ClmxtaWa
9 Most visitors to Carlsbad come in groups of 2 to 4 (76%).
. Nearly 99 percent of visitors were not traveling as part of an organized tour group.
9 Approximately 62 percent visit Carlsbad with children, while 38 percent visit Carlsbad
without children.
1 Summertime is the peak tourist season. Approximately half of visitors travel to
Carlsbad during the summer months and half visit Carlsbad at other times of the year.
. Over 90 percent of tourists surveyed arrived in Carlsbad by car and less than 7 percent.
arrived by plane.
. ' Over half of visitors to Carlsbad live in California, 12 percent from Arizona and less
than 15 percent from other US states. From a regional perspective, 80 percent of
visitors come to Carlsbad from the Pacific and Mountain regions.
Only a small percentage of visitors come to Carlsbad from outside of the US (9%). Of
this small share of foreign visitors, 19 percent were from Canada, 12 percent from
England, 10 percent from Germany and IO percent from Australia. Only 8 percent
were from Mexico. - The majority of those surveyed had heard about Carlsbad through friends and family
(44%), 28 percent found out through LEGOLAND, and nearly 18 percent had learned
. of Carlsbad by driving through it in the past. Fliers and hotel advertisements, travel
PRoJEcr NO. 14040 rourrsr SURVCY 30
agents, newspaper or magazine articles, and the internet each reached between 1 and 3
percent of respondents.
Purpose of Vi&
. Almost 77 percent visit Carlsbad for leisure and pleasure and 14 percent to visit
friends. Less than 4 percent visit for business.
’ Approximately 43 percent of tourists were attracted to Carlsbad because of
LEGOLAND, and nearly 24 percent were attracted by the beach or ocean.
Length of Stay
1 Though a significant percentage of survey participants were day visitors (27%), many
spend several days. Nearly 11 percent spend 2 days in Carlsbad, 11 percent spend 3
days and an additional 11 percent spend 7 days. Less than 10 percent of visitors stay
longer than 7 days.
Accommodations
9 An appreciable percentage of tourists stay in hotels while in Carlsbad (31%). The
Holiday Inn housed the greatest percentage (21%), followed by Best Western (12%),
Motel 6 (IO%), Carlsbad IM (9%), and Ocean Palms (8%).
9 Of the 12 percent of visitors staying in a timeshare, the majority stayed at Carlsbad Inn
(43%), Tamarack (23%) and Grand Pacific Palisades (13%).
. Only 15 percent of tourists stay with family or friends while in Carlsbad.
PROJECT NO. 14040 TOURlSr SURVCI 31
Unfortunately, these statistics are likely to have been skewed due to the fact that no
surveying was done at the Aviara and La Costa. This bias prevents the estimation of the
actual percentage of tourists who stay at the Aviara and La Costa. Instead, the survey
results indicate the percentage of visitors at other Carlsbad destinations stay at the Aviara
or La Costa (less than 3%).
The data from the tourist survey was also subject to a cross-tabulation analysis. SBFU
tested each survey question to determine a difference in response between visitors traveling
during the summer, and those visiting at other times of the year. Participants surveyed
between June 22 and September 3 (Labor Day weekend) were considered summer visitors
while those surveyed before and after these dates were considered non-summer visitors.
ERA has analyzed the results of this analysis and the key findings are presented below.
9 Respondents traveling during the summer were more likely to have children in their
party while a very high percentage (71%) of those traveling during the non-summer
months had no children in their party.
a A small, but statistically significant (i.e. not due to chance) difference was found
between the number of 25-34 year-olds traveling during the summer and members of
this age group traveling at other times of the year. Groups traveling in the summer
months tended to have 1 to 2 people in this age group while those traveling at other
times of the year tended to have fewer individuals in this age group.
. A small, but statistically significant difference was also found between the number of
3544 year-olds traveling during the summer and the number of 35-44 year-olds
traveling at other times of the year. Groups traveling in the summer months tended to
PROJECT No. 14040 rourrsr sunver 32
have 1 to 2 people in this age group while those traveling at other times of the year
tended to have fewer individuals in this age group.
9 Respondents traveling during the non-summer months had a higher proportion of
individuals ages 60-74 and 75 and older in their groups than summer visitors did.
Method of arrival exhibited seasonal variation. The predominant method of arrival in
Carlsbad, the automobile, accounted for a slightly larger share of summertime
visitation than non-summertime visitation. Though fewer than 7 percent of all visitors
arrived by plane, nearly twice as many visitors arrived by plane during the non-
summer as during the summer.
9 Visitors from most states came as frequently during the summer as during the winter.
However in several cases, significant differences were found. Respondents from
California tend to visit Carlsbad during the summer while visitors from Arizona tend to
visit during other seasons. These two states make up the majority of Carlsbad
visitation. Visitors from Colorado, Florida and Illinois visit Carlsbad predominantly
during the non-summer months, while those from Michigan visit almost exclusively
during the summer. These lasf four states, however, make up a very small percentage
of visitation (less than 8 percent of the total).
. Visitors from the Pacific, East North Central, East South Central, and Middle Atlantic
regions of the US tend to come to Carlsbad during the summer months while visitors
from Mountain, South Atlantic and New England tend to visit during non-summer
months.
PROJECT NO. 14040 TOURlST SURVEY 33
Foreign tourists were more likely to visit in the non-summer months than during the
summer while visitors from US zip codes were more likely to visit during the summer
than other times of the year.
. Visitors from most countries visit Carlsbad roughly equally during the summer as
during the winter. However, two of the countries that contribute the largest share of
foreign visitors, England and Germany, overwhelmingly favor the non-summer
months.
. Visitors who stated leisure and pleasure as the purpose of their visit preferred to visit
during the summer. Conversely, those traveling to Carlsbad for business, a conference,
to visit friends, or for multiple primary reasons more often visited during other
seasons.
Activities
. Only LEGOLAND attracted more summer visitors (62%) than non-summer visitors
(24%). This is important because LEGOLAND alone attracted over 43 percent of
visitors. In contrast, twice as many non-summer visitors were attracted to Carlsbad
because of the beach compared with summertime visitors, also important due to the
large share of tourists it attracts (24% total). The weather, friends and family, location,
timeshare, business and cleanliness also attracted more non-summer visitors than
summer visitors, however these factors are less important because each attracted less
than 10 percent of visitors year-round.
The overwhelming majority of survey participants who planned to visit LEGOLAND
visited Carlsbad during the summer. In contrast, nearly two-thirds of non-summertime
visitors stated that they did not plan to visit LEGOLAND.
PROIECT NO. 14040 TOURIST SURVZI 34
9 Nearly 80 percent of summer visitors stated that they had not visited or planned to visit
Carlsbad VillageDowntown Carlsbad, while only 55 percent of non-summer visitors
had not visited or did not plan to visit the area.
9 More non-summer visitors than summer visitors had shopped or planned to shop at the
Carlsbad Company Stores.
. Though the number of respondents who had golfed or planned to golf while in
Carlsbad was very small (6%), non-summer visitors were more than twice as likely as
summer visitors to have or plan to do so.
A much higher percentage of non-summer visitors had done or planned to participate
in beach activities or look at the ocean than summer visitors. Though this is
counterintuitive, it may be due to the fact that a high proportion of summer tourists
come to Carlsbad specifically to visit LEGOLAND. They may already be from coastal
areas or otherwise uninterested in incorporating a visit to the beach into their single-
purpose trip.
1 Though a very low overall percentage of visitors had gone or planned to go to the
movies, non-summer visitors were slightly more likely to have gone or planned to go
to the movies than summer visitors.
1 Three times as many non-summer visitors as summer visitors had visited or planned to
visit Carlsbad Historic Depot and Visitors Center, though the total number of visitors
having visited or planning to visit this destination was very low (less than 5%).
. A slightly higher percentage of non-summer visitors planned to participate in other
outdoors activities compared to summer visitors. Still, very few survey respondents
PROJECT NO. 74040 TOURIST SuRvEr 35
visiting during either season stated that they planned to do or had done other outdoors
activities (less than 2%).
Of the small percentage of visitors who had hiked on trails or planned to hike on trails,
a slightly higher percentage were non-summer visitors.
1 A higher proportion of summer visitors had not visited or did not plan to visit other
places during the vacation that brought them to Carlsbad.
= A higher percentage of non-summer visitors stay in hotels, timeshares and rental
condos compared with summer visitors.
Summer visitors staying in a hotel more often chose Motel 6, the Marriot, and Grand
Pacific Palisades than non-summer visitors. In contrast, non-summer visitors stayed in
Ocean Palms, Best Western, Fairfield Inn and Carlsbad IM more often than summer
visitors did.
. Though use of timeshares was relatively low, and most timeshares reflected
approximately equal percentages of summer and non-summer visitors, the Carlsbad Inn
and Grand Pacific Palisades showed a substantial seasonal difference.
How Visltwned of Carlsbd
0 More non-summer visitors than summer visitors learned of Carlsbad from a friend.
. The majority of the tourists who heard about Carlsbad through LEGOLAND visited
during summer.
PROJECT No. 74040 TOURIST SURVEY 36
rn Respondents who heard about Carlsbad by driving through in the past were more likely
to be non-summertime visitors.
8 Four times as many visitors who heard about Carlsbad by living there in the past
visited during the non-summer months as during the summer.
. Four percent of the visitors who heard about Carlsbad through timeshares were non-
summer visitors compared with only 1 percent of summer visitors.
Drticioation in Other Actlvltles in the Regian . ..
Greater percentages of those planning to visit the San Diego Zoo, Sea World,
Disneyland and Knott's Beny Farm during their vacation were summer visitors.
One-third of non-summer visitors visit Downtown San Diego versus only 20 percent of
summer visitors.
1 A greater percentage of those planning to visit La JolldTIel Mar during their vacation
were non-summer visitors.
* As a choice for a new restaurant in Carlsbad, summer visitors preferred a CafkDiner,
Fast Food, and family style restaurant more than non-summer visitors did. Non-
summer visitors preferred a healthfoodhegetarian, Italian, theme restaurant, bar and
grill, cultural or ethnic, seafood and steakhouse more than summer visitors.
9 While the activities available were most often a minor reason non-summer visitors
chose Carlshad, they were most often the primary reason for summer visitors.
PROJECT No. V4040 TOURIST SURVEY 37
a Summer and non-summer visitors like different aspects of Carlsbad. While non-
summer visitors prefer the beachlocean, atmosphere and the people, summer visitors
like LEGOLANLI and the weather.
9 While a higher percentage of summer visitors indicated that they were “somewhat
likely” to return to Carlsbad within the next five years, a higher percentage of non-
summer visitors responded that they were “very likely” to do so.
9 Wealthier visitors, those from households earning more than $100,000 per year tended
to visit in the summer while those earning less than $50,000 tended to visit during
other seasons.
. A greater percentage of Hispanic, African American and Asian or Pacific Islander
tourists visited Carlsbad during the summer while more Non-Hispanic Whites visited
during other seasons.
PROJECT NO. 74040 TouRrsr SURVEY 38
APPENDIX A - SURVEY QUESTIONNAIRES
City of Carlsbad Tourism Study - Resident Survey
Intro) Hello, my name is and I’m calling on behalf of the City of Carlsbad from the SBN Survey Lab
at Cal State University San Marcos. We’re talking to Carlsbad residents to get their opinions on leisure activities
and tourism in Carlsbad and we’d like to include your opinions.
[CONFIRM THAT THE PARTICIPANT IS 18 YEARS OR OLDER]
The interview will take about ten minutes and your participation is voluntary. The answers you give will be kept
strictly confidential and you may stop the interview at any time. I am also required to let you know that this call
may be monitored for quality control purposes. Is now a good time?
SI) Are you currently a resident of Carlsbad?
0. No
1. Yes
S2) What is your zip code?
1.92008
2.92009
3. Other
About Your Leisure Activities in Carlsbad?
I would like to begin by asking you a series of questions about how often you visit certain types of leisure and
entertainment areas.
For each of the following activities that I mention please tell me whether you do them:
At least once a week
At least once a month
Three or more times a year
At least once a year
Less than once a year
Never
Approximately how often do you ...........
A. Visit Legoland B. Visit Carlsbad Village
C. Visit La Costa Spa and Resort
D. Visit the Flower Fields
E. Visit Aviara Resort
F. Shop at The Carlsbad Company Stores Shopping Center
H. Play Golf (in Carlsbad)
G. Shop at Plaza Camino Real Shopping Center
I. Beach activities (in Carlsbad)
J. Go to the movies
a. (anywhere)
b. (in Carlsbad)
K. Eat Dinner at a restaurant
A- 1
b. (in Carlsbad)
a. (anywhere)
L. Hike on trails (in Carlsbad)
M. Go to the Gemology museum
N. Go to the Museum of Making Music
0. Go to the Cannon Art Gallery
P. Go to the Carlsbad Historic Depot and Visitors Center
Q2) What do you like most about Carlsbad as a place for recreation and entertainment?
1. BEACH
2. OUTDOOR ACTIVITIES
3. CLIMATE
4. NIGHTLIFE
5. PEOPLE
6. "VILLAGE" ATMOSPHERE
7. OTHER
43) What do you like least about Carlsbad as a place for recreation and entertainment?
1. OVERCROWDED
2. TRAFFIC
3. COST
4. TOURISTS
5. OTHER
44) If you only had one choice for a new leisure activity in Carlsbad, what would it be?
1. RESTAURANT/ SHOP COMPLEX
2. SKATEPARK
3. CASINO
4. WATERPARK
5. MUSEUM
6. GOLF COURSE
7. HIKING TRAILS
9. OTHER
a. AQUATIC CENTER
Q5a) What is your favorite restaurant to go to when you have children in your party?
Q5b) What is your favorite restaurant to go to when there are no children in your party?
Q5) If you had only one choice for a new restaurant in Carlsbad, what kind would it be?
1. CONTINENTAL
2. SURF N' TURF
3. FAMILY STYLE
4. CULTURAL
5. CHEESECAKE FACTORY
6. OTHER
46) On a scale of 1-10, where 1 is poor, IO is excellent, and 5 is average, how would you rate Carlsbad Village as a
place to visit for leisure, dining, shopping and entertainment?
A- 2
Q6a) Why do you not rate Carlsbad Village higher?
47) Besides Carlsbad, what three areas do you go to most often for dining and entertainment? (Question7 is asked 3
times and computer will not take a repeat answer)
1. LA JOLLA
2. PACIFIC BEACH
3. GASLAMP (DOWNTOWN SAN DIEGO)
4. RESTAURANT ROW (SAN MARCOS)
5. ENCINITAS
6. OTHER
Q7a) Do you prefer these areas to Carlsbad destinations?
0. No
1. Yes
Q7b) Why?
QS) If the City provided a centralized entertainment area, (theaters, restaurants, specialty stores, cultural facilities),
how many times per month might you visit it?
QSa) Where would you like it to be located?
Regarding Tourism:
T9) Now I would like to ask you a series of questions regarding Tourism.
Q9) How may times per year do you have out-of-town guests? [If zero, skip to 4131
QlO) Where do your overnight guests stay when they come to town? (Most often)
1. With you
2. A hotel in Carlsbad
3. A hotel elsewhere?
4. A campground
5. Their own second home or time-share?
6. Other
IOA.) Why outside Carlsbad?
Qll) What is the primary destination in Carlsbad you like to show your visitors?
412) What is the secondary destination in Carlsbad you like to show your visitors?
414) To what extent do you agree or disagree with the following statement: Leisure and entertainment destinations
enhance Carlsbad’s quality-of-life for its residents?
1. Strongly disagree
2. Disagree
4. Agree
3. Neither agree nor disagree
5. Strongly agree
A- 3
Q15) To what extent do you agree or disagree with the following statement: Carlsbad should plan and encourage new
leisure and entertainment destinations within the city?
I. Strongly disagree
2. Disagree
3. Neither agree nor disagree
4. Agree
5. Strongly agree
About Your Household:
T16) These last few questions are used for classification purposes only.
416) How many people are there, including yourself, in your household?
417) How many people are there in your household in each of the following age groups?
A. Under age 18
B. 18-24 years old
D. 35-44 years old
C. 25-34 years old
E. 45-59 years old F. 60-74 years old G. 75 and over
Q 1 7A 1) What year were you born?
Ql8) Please stop me when I reach the category that best describes your household's total income last year (2000) before
taxes
1. Less than $10,000
2. $10,000 to under $25,000 3. $25,000 to under $35,000
4. $35,000 to under $50,000
5. $50,000 to under $75,000
6. $75,000 to under $100,000
7. $100,000 to under $125,000
8. $125,000 to under $150,000
9. $150,000 or more
Q19) What is your highest level of education?
1. Less than high school
2. High school graduate
3. Some college (TechNoc School/2-Year Degree)
4. College graduate
5. Post college graduate education
A- 4
Q20) How would you describe your racial or ethnic background?
1. HISPANIC OR LATINO
2. BLACK OR AFRICAN AMERICAN
3. ASIAN AMERICAN OR PACIFIC ISLANDER
4. WHITE
5. NATIVE AMERICAN
6. OTHER
421) How long have you lived in Carlsbad?
QEND) Those are all the questions I have for you. Do you have any additional comments you would like to make about
any of the topics that we covered?
Thank you for your time and your assistance! Goodbye.
QGEN) INTERVIEWER RECORD RESPONDENT GENDER
MALE
FEMALE
A- 5
I Carlsbad City Tourism Survey - 2001
The City of Carlsbad wishes to improve entertainment and recreational oppormnities for all of its residents and
visitors. Please take a few minutes to comolete this survey. Your DaniciDation is imDortant and aDDreciated.
1. Please list the number of people in each age group 8. How did you arrive in Carlsbad,
that are traveling in your group. (1) Wutomobile
2. Where aie you visiting from? 9. What activities have you and do you plan to undemke in Carlsbad?
US. Zip Code: (1) Wisit Legoland
OrherCountry:
(2) Wisit Carlsbad Village/Downtown Grlsbad
(3) Wisit the Flower Fields
(4) Wisit La Costa Resort
(5) Wisit Aviara Resort
(6) Ehopping at the Carlsbad Company Stores
(8) CBeach Activities/ Look at the Ocean
(1) CBusiness (9) Go to the movies
(2) Eonference (10) DIiking on Trails
(3) [Leisure and Pleasure (11) Wisit a Museum (Which one?)
(4) Wisiting Friends (12) Wisit Carlsbad Historic Depot &Visitors Center
(5) ather: (13) ather:
3. Are you traveling as pan of an organized tour group?
(1) Mes
(2) LNo (7) Golf
4. What is the primary reason for your visit to Carlsbad?
5. What attracted you most about visiting Carlsbad? 10. During your visit to Carlsbad, how much do you estimate your
group will spend on an average day, for each of the following?
6. How many days and nights are you spending in a Food
Carlsbad during this trip? a Lo+% a Shopping -Days -Nights s Entertainment a Gasoline
7. If you are staying in Carlsbad any nights, where are you 11. For your entire visit to Carlsbad, how much do you estimate
(1) mith Fanib or Friends
staying? your group will spend on each of the following? ., (2) Campground
(3) Motel in Grlsbad (Please Specify) a a Admissions to Theme Parks, Museums, ac.
Golf .~
(4) mimeshare in Carlsbad (Please Specify)
(5) mental Condo in Carlsbad shuttles while in Carlsbad,
a Spa Fees
12. How many times have you used public transportation or private
- Ties
A- 6
13. How did you hear about Carlsbad?
(1) ‘Enends and family
(2) Plyer or advertisement in hotel
(3) mravel Agent
(4) Uegoland
(5) Wdvertisement about Carlsbad
(6) [Newspaper or magazine article
(7) [Driven through Carlsbad in past
(8) Unternet
(9) ather:
14. Are you visiting other places in the San Diego region
as part of your trip?
(1) Mes
(2) CNo [Skip to Question 191
15. If so, how many days and nights are you spending in
the San Diego region, (mcluding Carlsbad) during this
trip?
-Days __ Nights
16. If you are staying outside of Carlsbad, where are you
staying?
(1) With Famiiy or Friends
(2) Eampground
(3) Motel (Please Specify)
(4) mimeshare (Please Specify):
(5) mental Condo
17. If you are staying elsewhere in the San Diego region,
why are you not staying in Carlsbad?
18. What other major activities are you undertaking in the
region?
(1) Dan Diego Zoo (9) [Mission Bay
(2) ED. Wild Animal Park (10) [Beaches
(3) Sea World (11) Ua JolldDel Mar
(4) 031dTown San Diego (12) Golf
(5) [Balboa Park (13) [Disneyland
(6) [Downtown San Diego (14) [Xnon’s Beny
(7) [Mexico Farm
(8) Eoronado (15) UA/HoywoOd
(16) ather:
19. If you had one choice for a new restaurant in
Carlsbad, what kind or type of restaurant would it be?
:O. Where were the last three places that you have dined?
21 . To what extent were activities in Carlsbad the reasop. you came
to the San Diego region?
(1) tPrimary Reason
(2) Secondary Reason
(3) [Minor Reason
22. To what extent has Carlsbad met your expectations?
(1) [More than I expected
(2) Wbout what I expected
(3) Uess than I expected
23. What do you like the most about Carlsbad?
24. What do you like the least about Carlsbad?
25. What additional activities do you wish were in Carlsbad to
enhance your experience?
26. How likely are you to return to Carlsbad in rhe next five years?
(1) Wery likely
(2) Somewhat likely
(4) [Not at all likely
(3) mot likely
27. In what category is your annual household income?
(1) Uess than $10,000 (6) 575,000 - $99,999
(2) 510,ooO - $24,999 (7) [361OO,ooO - $124,999
(3) 525,000 - $34,999 (8) 5125,000 - $199,999
(4) 535,000 - $49,999 (9) 5200,000+ (5) 550,000 - $74,999
28. What is your level of education?
(1) Wttended high school
(2) Migh school graduate
(3) Dome coUege/Technical school
(4) Eollege graduate
(5) most-college graduate education
29. What is your ethnic background? (Please select all that apply)
(1) CHjspanic or Latino
(2) mfrican American
(3) Wsian or Pacific Islander
(4) White
(5) [Native American
(6) mther:
A- 7
APPENDIX C
CARLSBAD TOURISM PROMOTIONS & VISITOR
INFORMATION SURVEY RESULTS
t"
t"
3 3
I II I I
I
j .- m
SURVEY OF OTHER CITES ON TOURISM MARKETING
1. City: Santa Monica (Pop. 84,084 with approx. $14.27 per capita spending on
tourism marketing.)
2. Organization for tourism marketing - (Separate organization, Chamber of
Commerce or part of Chamber, City Dept. etc.)
Con Vis
3. Funding - City Funded? If yes, how much? What is source? Is it a % of TOT or
a flat rate?
City provides $1.2 million in General Funds not tied to TOT.
4. What does organization do? Sales and marketing? Visitors Center? Other?
All of the above.
5. Does Convis perform group sales function? If not, does any other organization do
that for the city?
Yes
6. Does City participate in regional tourism efforts? Any funding? Fund more than
one organization?
No
7. Does City have a formal contract with Convis? If so, is a 1 year or multi-year?
Yes. Annual contract.
SURVEY OF OTHER CITIES ON TOURISM MARKETING
1. City: Pismo Beach (Pop. 8,600 with approx. $59.30 per capita spending on
tourism marketing.)
2. Organization for tourism marketing - (Separate organization, Chamber of
Commerce or part of Chamber, City Dept. etc.)
City Department, Chamber of Commerce, and San Luis Obisbo County Visitor’s
Bureau
3. Funding - City Funded? If yes, how much? What is source? Is it a % of TOT or
a flat rate?
City staff provide Con Vis types of services with budget of approximately
$400,00O/yr. Chamber of Commerce is paid about $75,00O/yr. to operate visitor’s
center. San Luis Obisbo County Visitor’s Bureau is paid about $35,00O/yr. for
regional tourism effort. Total funding of approximately $510,OOO/yr.
4. What does organization do? Sales and marketing? Visitors Center? Other?
See #3
5. Does Convis perform group sales function? If not, does any other organization do
that for the city?
Group sales effort is mainly done by City staff.
6. Does City participate in regional tourism efforts? Any funding? Fund more than
one organization?
Yes. $35,000 for San Luis Obisbo County Visitor’s Bureau
7. Does City have a formal contract with Convis? If so, is a 1 year or multi-year?
Annual contracts with Chamber and County Visitor’s Bureau.
SURVEY OF OTHER CITIES ON TOURISM MARKETING
1. City: Dana Point (Pop. 35,110 with no funding for tourism marketing.)
2. Organization for tourism marketing - (Separate organization, Chamber of
Commerce or part of Chamber, City Dept. etc.)
No Con Vis. City does not fund any tourism promotions. Businesses in the City do
their own promotions. City is a member of Chamber of Commerce and pays
membership dues.
3. Funding - City Funded? If yes, how much? What is source? Is it a % of TOT or
No
4. What does organization do? Sales and marketing? Visitors Center? Other?
a flat rate?
NA
5. Does Convis perform group sales function? If not, does any other organization do
that for the city?
NA
6. Does City participate in regional tourism efforts? Any funding? Fund more than
one organization?
No
7. Does City have a formal contract with Convis? If so, is a 1 year or multi-year?
NA
SURVEY OF OTHER CITIES ON TOURISM MARKETING
1. City: Oxnard (Approx. pop. 170,000 with approx. $2.12 per capita spending on
tourism marketing.)
2. Organization for tourism marketing - (Separate organization, Chamber of
Commerce or part of Chamber, City Dept. etc.)
Con Vis (regional)
3. Funding - City Funded? If yes, how much? What is source? Is it a % of TOT or
a flat rate?
City provides $360,00O/yr. in General Funds not tied to TOT.
4. What does organization do? Sales and marketing? Visitors Center? Other?
Provides all functions above.
5. Does Convis perform group sales function? If not, does any other organization do
that for the city?
Yes
6. Does City participate in regional tourism efforts? Any funding? Fund more than
one organization?
Yes. Con Vis is regional organization.
7. Does City have a formal contract with Convis? If so, is a 1 year or multi-year?
Yes. Annual contract
SURVEY OF OTHER CITIES ON TOURISM MARKETING
1. City: Coronado (Pop. 24,673 with approx. $14.75 per capita spending on tourism
marketing.)
2. Organization for tourism marketing - (Separate organization, Chamber of
Commerce or part of Chamber, City Dept. etc.)
Coronado Historical Association is provided funds to for operation of visitor’s center.
The City did fund Visitor’s Bureau, but now local hotels, restaurants etc. fund the
Bureau.
3. Funding - City Funded? If yes, how much? What is source? Is it a % of TOT or
a flat rate?
Historical Assoc. is provided $364,00O/yr. to operate visitor’s center and provide
visitor information.
4. What does organization do? Sales and marketing? Visitors Center? Other?
See #3
5. Does Convis perform group sales function? If not, does any other organization do
that for the city?
No group sales done with City funds. Hotels do their own. Visitors Bureau does it
for hotels and other members.
6. Does City participate in regional tourism efforts? Any funding? Fund more than
one organization?
No
7. Does City have a formal contract with Convis? If so, is a 1 year or multi-year?
Annual contract with Historical Assoc.
SURVEY OF OTHER CITIES ON TOURISM MARKETING
1. City: Santa Barbara (Approx. pop. 97,000 with approx. $14.02 per capita
spending on tourism marketing.)
2. Organization for tourism marketing - (Separate organization, Chamber of
Commerce or part of Chamber, City Dept. etc.)
Conference & Visitors Bureau and Chamber of Commerce
3. Funding - City Funded? If yes, how much? What is source? Is it a % of TOT or
a flat rate?
Funding for the following are from General Fund and not tied to TOT.
Chamber receives $60,OOO/y. to maintain visitors center.
Conference and Visitors Bureau receives $1.3 milliodyr. to do marketinglpromotions
and group sales.
4. What does organization do? Sales and marketing? Visitors Center? Other?
See #3
5. Does Convis perform group sales function? If not, does any other organization do
that for the city?
Yes
6. Does City participate in regional tourism efforts? Any funding? Fund more than
one organization?
Conference and Visitors Bureau is a regional organization that gets funds from other
cities as well.
7. Does City have a formal contract with Convis? If so, is a 1 year or multi-year?
Yes. Annual contract
SURVEY OF OTHER CITIES ON TOURISM MARKETING
1. City: Carmel (Pop. 4,081 with approx. $25.73 per capita spending on tourism
marketing.)
2. Organization for tourism marketing - (Separate organization, Chamber of
Commerce or part of Chamber, City Dept. etc.)
Contracts with Carmel Business Association for marketing and City of Monterey for
use of visitors center.
3. Funding - City Funded? If yes, how much? What is source? Is it a % of TOT or
a flat rate?
$100,000 flat rate for Carmel Business Assoc. and $5,000 flat rate to City of
Monterey.
4. What does organization do? Sales and marketing? Visitors Center? Other?
Business Association does marketing. Contract for use of visitors center in City of
Monterey allows for distribution of materials there and offsets the cost of staffing the
center.
5. Does Convis perform group sales function? If not, does any other organization do
that for the city?
No focus on group sales by any organization.
6. Does City participate in regional tourism efforts? Any funding? Fund more than
one organization?
City will possibly be joining the regional Monterey County Convention and Visitors
Bureau. Currently not a member.
7. Does City have a formal contract with Convis? If so, is a 1 year or multi-year?
Yes. Annual contract
SURVEY OF OTHER CITIES ON TOURISM MARKETING
1. City: Monterey Pop. 29,000 with approx. $39.10 per capita spending on tourism
marketing.)
2. Organization for tourism marketing - (Separate organization, Chamber of
Commerce or part of Chamber, City Dept. etc.)
City Facilities Dept. is in charge of visitor related facilities including Visitors Center.
It also hm does its own convention marketing through their Group Sales Office. The
City also contracts with the Monterey County Convention and Visitors Bureau to
operate the Visitors Center and for promotional purposes. (see below)
3. Funding - City Funded? If yes, how much? What is source? Is it a % of TOT or
a flat rate?
City helps to fund the Monterey County Con Vis with flat rate of $1 14,000 per year
to operate the visitors center, $14,000 for promotional material, $83,000 for
convention housing/delegate services, and $330,000 for tourism ad campaign. City
budget for tourism marketing related costs for 2001-2002 is $593,000. Total funding
for tourism marketing related activities is $1,134,000.
4. What does organization do? Sales and marketing? Visitors Center? Other?
See #3 above.
5. Does Convis perform group sales function? If not, does any other organization do
that for the city?
See #2 above.
6. Does City participate in regional tourism efforts? Any funding? Fund more than
one organization?
Yes, Monterey participates with other cities and businesses in the area in funding the
County Con Vis. (See #2 and 3 above.)
7. Does City have a formal contract with Convis? If so, is a 1 year or multi-year?
Agreement for operation of visitors center is 5-year contract. All others are annual
contracts.
SURVEY OF OTHER CITIES ON TOURISM MARKETING
1. City: Laguna Beach (Pop. 23,727 with approx. $7.59 per capita spending on
tourism marketing.)
2. Organization for tourism marketing - (Separate organization, Chamber of
Commerce or part of Chamber, City Dept. etc.)
Contracts with Laguna Beach Visitors Bureau
3. Funding - City Funded? If yes, how much? What is source? Is it a % of TOT or
a flat rate?
The City has formed a Tourist Promotion District in which businesses that collect the
10% TOT are to collect an additional 2% assessment from customers. The City
distributes 50% of revenues from the 2% assessment to the Laguna Beach Visitors
Bureau for promoting the City and 50% to various arts and cultural organizations in
the City. Approximately $180,000 in City funds was provided to the Visitors Bureau
last year under a different formula. It is unknown if the Bureau will receive as much
this year based on the new formula because of the downturn in tourism.
4. What does organization do? Sales and marketing? Visitors Center? Other?
All of above, but with no focus on group sales.
5. Does Convis perform group sales function? If not, does any other organization do
that for the city?
No focus on group sales.
6. Does City participate in regional tourism efforts? Any funding? Fund more than
one organization?
No. Unaware of any participation in regional effort.
7. Does City have a formal contract with Convis? If so, is a 1 year or multi-year?
Yes. Annual contract.
SURVEY OF OTHER CITIES ON TOURISM MARKETING
1. City: San Luis Obisbo (Pop. 44,174 with approx. $10.11 per capita spending on
tourism marketing.)
2. Organization for tourism marketing - (Separate organization, Chamber of
Commerce or part of Chamber, City Dept. etc.)
Chamber of Commerce, Visitor Conference Bureau (VCB), and marketing firm.
3. Funding - City Funded? If yes, how much? What is source? Is it a % of TOT or
a flat rate?
Flat rate not tied to TOT for all of the following. Chamber of Commerce receives
$38,60O/yr. for promotion activities and $79,OOO/yr. to maintain visitors center. VCB
is a county-wide organization that receives $66,OOO/yr. from the city to do group
sales, travel shows, film commission work, publications, and brochures. A marketing
firm is paid $159,00O/yr. to work with hotels/motels on marketing and advertising.
The City also has a Promotional Coordinating Committee that receives $106,00O/yr.
to promote events in the City. Total funding is $446,600.
4. What does organization do? Sales and marketing? Visitors Center? Other?
See #3
5. Does Convis perform group sales function? If not, does any other organization do
that for the city?
VCB does group sales for county-wide area.
6. Does City participate in regional tourism efforts? Any funding? Fund more than
one organization?
Yes. See #3.
7. Does City have a formal contract with Convis? If so, is a 1 year or multi-year?
Contracts are for two years because of two-year budget.
SURVEY OF OTHER CITIES ON TOURISM MARKETING
1. City: Huntington Beach (Pop. 200,000 with approx. $1.00 per capita spending on
tourism marketing.)
2. Organization for tourism marketing - (Separate organization, Chamber of
Commerce or part of Chamber, City Dept. etc.)
Con Vis
3. Funding - City Funded? If yes, how much? What is source? Is it a % of TOT or
a flat rate?
Provides $200,000 in General Funds not tied to TOT.
4. What does organization do? Sales and marketing? Visitors Center? Other?
Advertising, promotion and operation of visitor’s center, but not group sales.
5. Does Convis perform group sales function? If not, does any other organization do
that for the city?
No
6. Does City participate in regional tourism efforts? Any funding? Fund more than
one organization?
Yes. Con Vis promotes region. City does not provide any other funding for regional
efforts.
7. Does City have a formal contract with Convis? If so, is a 1 year or multi-year?
Yes. Annual contract.
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Carlsbad Village Business Association 39 12 46 IL,8oz I P. 0. Box 1460
Carisbad, CA 920181480 760.433.5598 Phone
www.cvba.com 760.757-0188 Fax
July 9,2002
Honorable Mayor Bud Lewis
Members of Carlsbad City Council
1200 Carlsbad Village Drive
Carlsbad. CA 92008-1989
Dear Mayor Lewis and City Council Members:
Recently the Carlsbad Village Business Association was made aware that the City had contracted
with a private consulting firm (Economic Research Associates) to complete a study relative to
tourists and the impact of tourism on the City of Carlsbad. A draft copy of the study, Tourism
Policies and Program Sfrategy, was made available to us within the past two weeks and it was
distributed among the businesses within the village area of Carlsbad.
There has been a great deal of interest in this document, both in terms of its key findings and
what it envisions particularly since a significant proportion of both directly relates to and impacts
the village, its environment, and the businesses that operate within the village.
We would like to request that the Council postpone any formal action on this plan until October
to allow our organization and the village businesses to complete a review to more thoroughly
understand its implications and how it might impact the village.
The CVBD currently has a planning committee that is working with existing businesses in the
Village to promote the area and what it has to offer. Some of the findings from the study have
been very helpfid to this committee’s work. Given this and given some additional, time we
believe there could be some mutual benefit in coordination and integration with the Council’s
direction as viewed through the study and the direction the CVBD is charting through its
planning committee.
ideration of this request
08/05/02 13:36 FAX 7607290497
August 5,2002
Mayor Bud Lewis
City of Carlsbad
1200 Carlsbad Village Drive
Carlsbad, Ca 92008-1989
Dear Mayor Lewis,
WESTFIELD PLZ CAMINO REA a001
Talephone 17501 729-7927
F.OlmHe 17601 729-0497
I am writing in regard to the Tourism Policies and Program Seatcgy agenda item, which
is on the City Council Agenda for August 6, 2002.
On July 31,2002, a meeting of representatives of hotels, retail establishnlents, attractions
and other interestcd partiss was held to discuss the upcoming council action. Over 20
individuals atteuded, orwhich I was one.
Given the fact that tourism is one ofthe key providers ofrevenue for the city through the
TOT and sales taxes, as well as providing significant employment opportunities within
the city, it is important that the city and thc indushy work together to develop the best
stralegies and programs that will benefit all.
As was done with other i:mpoflant issues over the last few years, such as trees, streets, art,
signage and housing, a conunittee of stakeholdas and citizens should be appointed to
address and develop the appropriate strategies and policies for tourism for the City
Council to consider. In all the other areas cited above, the results of these special
committees have provided the Council with excellent input and the resulting programs
have been very good for ~Carlsbad.
I slrongly urge you and the Council to postpone a decision on this agalda item for 60-90
days so you can appoint ;I colnlnittee representing induslry and citizens and they can
provide you with a repod and recommendations for you to consider.
I appreciate your consideration and invite you to contact me should you have any
questions.
Sincerelv.
&mea Durnan
General Manager
August 5,2002
The Honorable Claude “Bud” Lewis, Mayor
City of Carlsbad, City Hall
Carlsbad, CA 92008
By Facsimile
And Council Mcmbcrs
AGENDA ITEM# 13 a Mayor
City Counefl
City Manager
Clty Clerk
City Attorn9 - -
Dear Mayor Lews and Council Members:
It is my understanding that the Carlsbad City Council. at their August 6 meeting, will be
considering the acceptance of the Tourism Policy and Programs Shte~, a~ proposed by
Economic Rescmh Associates (ERA). I am writing to urge you to delay yow acccpmcc for
mother 30 to 45 days. During that time, I would also urge you to seek addirional input from represenutivcs of the ravel tourism industry.
My concern about the ERA study is twofold 1) The shldy does not set out a slrategic master plan
for tourism that addresses our current post-9/11 environment. 2) There appears to be a serious
lack of indusby involvcmcnt in thc study, which I believe may have led to fnulty criteria selection and faulty conclusions.
Z attended a meeting on July 3 1 that included representatives of area horels, retail establishments,
and attractions. The goal of this group is to establish the Carlsbad Tourism Alliance to serve as a
voice for our industry that maintains its independence from both the Chamber of Commerce and
the Canvmtion and Visitors Bureau It is my hope that this group could bc helpful to you in your
efforts to bcst save the community of Carlsbad.
AS General Manager of Carlsbad Inn Beach Resort, I oversee both the Hotel and Timeshare
portions of OUT property. Our combined operations bring approximately 30,000 unique visitors to
o.ur city each year. Those visitors spend approximately %8M in ow area, above aud beyond the
cost of their rooms. Our annual TOT contribution is about $215,000.
Again, I rcspectfully request that you delay a dccision on Aug 6. 1 am open to any comments or
suggestions you may have and I offer mysclf for any help I may be able to provide.
Thank You for your consideration!
Randal C. Chapin
General Manager
3075 Carlsbad hulevard * Carkbad. Callfornia 92008
(7601 434-7020 . ww.carIsladinn.com
** TOTAL PAGE. 02 **
FROM
Hilton Garden Inn- Ctrrlsbad Beach AGENDA ITEM # 13
C: Mayor
The Honorable Claude Lewis, Mayor
And Council Members
Clty of Carlsbad, Uty Hall - Carlsbad CA. 92008
Clty Council
City Manage?
City Attorney
City Clerk
BY FACSIMILE
Dear Mayor Lewls and Councll Members:
.. .-
We are requesting that you delay your approval of the Tourism Pollcy and Programs Strategy, as
need to have a chance to consider and comment on the recommendations.
proposed by Economic Research Associates (ERA). We believe the members of the local tourism industv
On or about the 2@‘ of July, we received a copy of the ERA’S Tourism Assessment dated June 2000,,??
In addition the conclusions that were drawn from the study. I had an opportunity to attend a meeting
and many of the hoteliers from Carlsbad. The purpose of the meeting was to discuss the potentially
that was held at the Carlsbad Chamber of Commerce; In attendance we had retailers, tourist attracttons
damaging impact of the report. Many mncems had been raised, from the relevance of the study In a post
9/11/02 environment, many inaccuracies of the data that was provlded, and most importantly, the lack of
comments or Input from the local tourism communlty.
As you know, The Hilton Garden Inn Qrlsbad Beach had opened it doon June of 2M)o. Since that lime
we have supported Carlsbad In the finest of Quali+ Staff and Sewlce, with Corporate client such as
Callaway Golf, Taylor Made, Invibogen, The City Offices of Qrlsbad, Palomar Airport, and many more ...
As well as supported to the Leisure Traveler that visits our fine clty, and not to forget the Group Business
Carlsbad Convention and Visitors Bureau and San Dlego North Convention and Visitors Bureau and our
that is driven by San Diego North Conventlon and Visitors Bureau. In addition, wlth the help of the
own Sales and Marketing of approximately $550,000 a year, In addition we’ve brought additional
attentlon to Carlsbad via media, magazines, Television, and Mlllbns of Visitors to our web-site.
approximately 95,000 guests per year. These guests *presenting the Corporate, Leisure and Group
Pmently the Hilton Garden Inn Qrlsbad Beach, employees 85 team members, which ammmcdate
business that-are visiting our fine City.
I am confident that you and the council members are looking to do what is right for Carkbad and
tourism Industry or should I say the newly-formed Carlsbad Tourism Alliance to meet and offer feedback
respectfully request that you delay the adoption of the Tourism Policy for a few weeks. This wlll allow the
that represents its industries. ’,
I would llke to thank you in advance for your conslderation,
General Manager
Hilton Garden Inn Carlsbad Beach
Cami Mattson, President and CEO of San Diego North CVB
Jan Sobel, President, Carlsbad Chamber of Commerce
Kurt Burkhart, Executlve Director, Carlsbad CVB
Micheal Flickinger, Chairman, Carlsbad CVB
cc:
6450 Curlobad Boul~vard. cUl&nd, CA 92009 ’Id: 760 476 0800 Fax 760 476 0801
Aemtions: m.hilrangudeninn.eom or 1-800-H11TONS l”ld%ady
VACATION RENTALS
3100 OCEAN STREETaCARLSBAD, CA 92008
(760) 720-1400 * FAX: (760) 720-7173
August 1,2002
The Honorable Claude “Bud” Lewis, Mayor, and Council Members.
City of Carlsbad California, City Hall
Dear Mayor Lewis and Council Members:
Briefly stated, I am a 45 year resident of this county and I have been a businessperson
and employer here for many of those years. Presently, I own and operate a vacation
resort in the heart of Carlsbad and I participate in business and community organizations.
I am impressed with the growth of Carlsbad and I commend the political and community
leaders who had a hand in guiding the economic development, while at the same time
addressing the concerns of the citizens. Carlsbad is a great place to live and to work.
A short time ago I became aware of the recent study authorized by the Council to
determine ifthe City should explore the necessity of developing a tourism master plan. I
obtained a copy of that study by ERA and I studied the &dings closely. I was very
disappointed with the conclusion that a plan is unnecessary at this time and that no action
should be taken in this regard. I think the Council should take more time and get input
i?om organizations and people in my industry before takig action on these findings.
Tourism is a labor-intensive industry and it brings other significant income into this
community without large investments by local government. I spend over $6000 per year
on advertising and I employ four people in my business to bring visiting families to
Carlsbad. They in turn spend thousands of dollars here as well as providing $30-$40,000
in TOT. I expect the City to spend more of this revenue I collect to help OUT industry and
to promote Carlsbad as a vacation destination. The present level of commitment is not
enough.
Thank you for your attention to this matter and I hope you will grant a continuance on the
study’s conclusion until we in the industry can further review the findings and provide
data and comments of OUT own.
Yoq very truly, t
http://www. beachwalkvillas.com g e-mail: bchwlk@beachwalkvillas.com
August 1,2002
The Honorable Claudc “Bud” Lcwis, Mayor and Council Members
City of Carlsbad City Hall
Carlsbad, CA 92008
Dear Mayor Lewis and Council Mcmbers;
Represcntatives from Carlsbad’s tourism industry met this week. Onc of the results of the meeting was
the formation of the Carlsbad Tourism Alliance, an ad-hoc group whose common interest is the
development and management of tourism to Carlsbad. This group is independent of any existing
organizations including the chamber and area visitor bureaus.
One of the items discussed at the meeting was the upcoming Tourism Policy scheduled for presentation at
next week’s city council meeting. Though apparent that a significant amount of research has been
of conclusions drawn from information which lacks the voice of the tourism industry itself These
conducted over the past few years, the Tourism Alliance has concerns that the proposed policy is a result
wnccrns stem from what appears to be discrepancies in statements made throughout the supporting
swey data/report and the ultimate conclusion that “several cxisting policy statements and programs
support the desired level of tourism or leisure entertainment . . . it does not appear that a need has been
demonstrated to develop a comprehensive Tourism Master Plan’’. Yet the survey summary specifically
statcs “While the City of Carlsbad has adopted plans that address tourism within the context of other
initiatives, the City does not have an adoptcd tourism policy or mastcr plan specifically. The Economic
Development Strategic Plan implies that the City should have a tourism policy to help respond to the
impacts that tourism generate”.
There is also concern over the inaccuracy of the prevailing perception stated several times throughout the
report that “many of the organizations within thc Carlsbad tourism industry have their individual
strategies and marketing plans and expend considerablc dollars to promote their facilitkdattractions as
well as Carlsbad.” The fallacy of this statement is that while the individual organizations do have their
own tourism efforts, these efforts are not designed to promote or bmd the destination.
The Carlsbad Tourism Alliance will be in attendancc at next week’s meeting and would like to request
that the city council postpone any action with regards to the proposed Tourism Policy for 30-45 days.
This will give the Alliance time to prepare so the council can be provided with morc complete
information in which to make their decision on the future of tourism to Carlsbad.
Thank you in advance for your consideration of this matter that is important to the tourism industry as
well as the City of Carlsbad.
Sincerely,
Anita Boeker
Director of Marketing
COMPANY STORES
5620 Paseo Del Norte. Suite 100, Carlsbad, California 92008
(760) 804.9000 FAX (760) 804.9044
Rug 02 02 01:56p GRAND PRCIFIC PRLISRDES 760a273210 P.2
August 2,2002
The Honorable Claude "Bud" Lewis, Mayor
And City Council Member
City of Carlsbad, City Hall
Carlsbad, CA 92008
Dear Mayor Lewis and Council Members:
As the General Manager at Grand Pacific Palisades Resort & Hotel, I was pleased to be
able to participate in the Interccpt Surveys by allowing them to be conducted in our
Lobby.
I also enjoyed reading the report but came away from it with some concerns.
First and foremost, 1 believe that the study does not make a strong enough commitment to
maintaining and growing tourism in Carlsbad.
Additionally, I believe the City does need a Master Tourism Plan that properly plans for
increased tourism over the next five (5) years in Carlsbad.
Thirdly, 1 respectfully ask the City Council to deter malang any decisions as it relates to
the acceptance of this report until the members of the Tourist Industry can meet to make
recommendations for Council review.
Sincererv. I"';-,P&
Michael Flickinaer
General Manager, Grand Pacific Palisades Resort & Hotel
Cc: Kurt Burkhart, Executive Director, Carlsbad Convention & Visitors Bureau
Cami Mattson, President/CEO, San Diego North Convention & Visitors Bureau
Jan Sobel, CEO, Carlsbad Chamber of Commerce
oa/oi/o2 11:34 ‘E1 760 727 1583 CERTIFIED ~001/002
- E CERTIFIED
FOLDER DISPLAY SERVICE, INC. Abfi
C:
August 1 I 2002
Via FAX to (7601 720-9461
The Honorable Claude “Bud” Lewis, Mayor and Council Members
City of Carlsbad, City Hall
Carlsbad, CA 92008
Re: Tourism Policies and Program Strategy Report
Dear Mayor Lewis and Council Members:
My letter to you today concerns the Tourism Policies and Program Strategy
report that has recently been released to the local tourism industry in Carlsbad.
As a resident of Carlsbad (6933 Dusty Rose Place, Carlsbad CA 92009) for over
25 years, I am concerned about both quality of life issues and the responsible
management of economic development in Carlsbad. I work for Certified Folder
Display Service, Inc.. a service company for the travel and tourism industry
serving the Western U.S. and Canada with headquarters in Vista CA.
On a local basis, our company works with over 600 hotels, motels, attractions
and other visitor-senrice companies located throughout Carlsbad and San Diego
County. Besides seeing the successful growth of Carlsbad as an attractive
tourism destination as a local resident, I have seen other destinations in our area
suffer from lack of investment in tourism promotion and infrastructure to support
tourism growth. Carlsbad has many reasons to be proud!
I found the Tourism Policies and Program Strategy report very interesting, but I
am very concerned about the lack of input in this process from the local Carlsbad
tourism industry. I also came across many factual errors or misstatements in the
report. I had occasion to attend a meeting to discuss the report held on July 31
that was attended by more 20 local tourism leaders from our major hotels,
attractions and other related businesses.
This meeting started with discussions regarding the report and ended up with the
establishment of the Carlsbad Tourism Alliance. This ad-hoc group is
independent of the Carlsbad Chamber and Carlsbad CVB and is a group of
major players from the’local tourism industry that want to serve as the voice of
industry.
08/01/02 11:34 S1 760 727 1583 CERTIFIED ~002/002
.. . . CERTIFIED
FOLDER DISPLILY SERVICE, INC.
I request that the Mayor and Council defer any action on this report, and
establish a citizens committee to review this report and to help gather additional,
more current information so the Council can have a clearer picture of the critically
important tourism industry in our town. We would like 30-45 days to review the
report in detail and report back to the council with additional information and
comments.
Carlsbad is in a very unique and desirable position -we have beautiful beaches,
attractions, a fantastic mix of hotels, resorts and motels, and first-class shopping
and dining. However, I feel the City needs to be concerned with the management
of this important economic sector. The Carlsbad CVB provides the branding for
Carlsbad and sends out the message of Carlsbad as a tourism destination. Our
individual hotels, attractions and shopping centers are more appropriately
concerned with bringing traffic to their own respective business.
Carlsbad has enjoyed the benefits of positive and coordinated growth through the
City’s Master Plan. I feel we need to have a Tourism Master Plan, and I would
hope the City would reach out to the local Carlsbad tourism community to be part
of this important process!
In closing, I encourage the Mayor and Council to seek the input on this report
and other issues impacting the tourism sector in Carlsbad from the Carlsbad
Tourism Alliance and other communrty members. Please delav anv adoption of
the report for at least 3045 davs to allow sufficient time for a complete review of
the report and additional critical information.
Thank you for your consideration of this request!
Sincerely, G;d-
Patrick Fearn
President
Cc: Ms. Jan Sobel, Carlsbad Chamber of Commerce
Mr. Kurt Burkhart, Carlsbad Convention & Visitors Bureau
Ms. Cami Mattson, San Diego North CVB
Grpomk Office: I120 Jeshuo Way, Visto, blifarnio 92083
Phons: (760) R7.Sl00 or 1-800-799-7373 hx: [760J 727-ISIJ www..ertilisdfoldsr.com 1*11.,*,,
Rug 01 02 01: 26p C Liscer & T Harnish
c
760-331-2664 P.2
August I, 2003.
The Honorable Claude “Bud” Lewis, Mayor
and Council Members
City of Carlsbad. City Hall
Cnrlsbnd. CA 92008
BY FACSIMILE
Dear Mayor Lewis and Council Members:
Pagel of 2
AGENDA ITEM # \3
c: Mayor city cornen city Mawger
arJ- City Attorney
We are requesting that you delay your acceptance of the Tourism Policy and Programs Strategy, as
proposed by Economic Research Associates (ERA), until members of the local tourism industry have
had a chance to consider and comment on the recommendations.
On July Zyth, we received a copy of ERA’S Tourism Jmpact Assessment dated June Woo, as well as the
conclusions that were drawn from that study. On July 31% we attended a meeting that included repre-
sentatives of about 20 Carlsbad hotels, retailers, and tourist attractions. The purpose of the meeting was
LO discuss the potentially far-reaching impact of the report. Specific concerns raised by the group in-
cluded the relevance of the study in a post 9/11 environment, inaccuracies of basic data about our own
operations which cause us to question other parts of the study, and, perhaps most importsnrly, the lack of
input from the tourism industry (only 4 meeting participants were polled).
As you know, Barnstorming Adventures. Ltd. has operated its vinmge air tour business from Palomar
Airport since 1994. Since that time we’ve delighted more than 60,OOO residents. tourists, and corporate
incentive travelers with biplane flights, air combah and warbird rides. In addition, with the help of
Carlsbad Convention and Visitors Bureau, San Diego Nonh Convention and Visitors Bureau, and our
own marketing budget of approximately $1OO,OOO a year; we’ve brought significant media attention to
our venture and to Carlsbad. Stones about our unique Carlsbad-based business have appeared in over a
hundred newspapers, tv shows, magazines, and movies. The Travel Channel even named us as their top
California adventure and among the “101 things to do before you die” (their words not ours).
Presently we employ 25 pilots, accommodate over 10,OOO guests per year (the majority of whom do not
live in Carlsbad), entertain dozens of corporate incentive groups (including TransAmerica, Microsoft,
Audi, Lexus. Merck. EDS, and many others), and purchase significant fuel and related services from
airport vcndors.
6743 Montia Ct - Carlsbad CA 92009 - 760-438-7680 Fax 760-931-2664
http://www.barnstorming.com - e-mail katetom@barnstorming.com
flug 01 02 01: 26p C Lister b T Harnish 760-931-2664 P.3
page 2 of 2
We know that YOU alrd IIIC Council are eager 10 do whar is right for Carlsbad and respecfully requesr
that you delay adopting the Tourism Policy and Programs Strategy for a period of30 to 60 days. Such B
delay will allow the newly-formed Carlsbad Tourism Alliance to formulate and offer feedback that
represents its constituents.
Tlrallk you for your time and considerarion
Sincerely. 7
Barnstorming Adventures, Lrd.
cc.
Jan Sobel, President. Carlsbad Chamber of Commerce
Cami Mattson, President & CEO of .SUI Diego North CVB
liun Burkliart, Executive Dirmor, Carlsbad CVB
6743 Montia Ct - Carlsbad CA 92009 760-438-7680 Fax 760-931-2664
http://www.barnstorming.com - e-mail katetom@barnstorming.com
Carlsbad Village Business Association
Carlsbad, CA 92018-1460
P. 0. Box 1460
760.433.5598 Phone
760.757-0188 Fax
www.cvba.com AGENDAITEM I 13
E: Mnvor
August 1,2002
Mayor Claude A." Bud" Lewis
City of Carlsbad
1200 Carlsbad Village Drive
Carlsbad, CA 92008
Subject: Report from the Redevelopment & Housing Agency
Tourism policies and Program Strategy
Dear Mayor,
The Carlsbad Village Business Association (CVBA) recently received a copy of the
aforementioned document and passed it around for review/comment.
We were somewhat surprised when we received this document. We felt that it was great
that the City had such an initiative. We read the draft summary many times. We did not
know that such an initiative/endeavor was in progress. Perhaps, the initiative could get
much more support if the word got out?
However, we consider the document too generic, at this time. The document quotes
demographics from -1999. The survey focused mostly on residents and visitors. Why
not include businesses? The businesses have a big stake in the success of Carlsbad.
The repoNsurveys reported are somewhat inconclusive because it does not address
salient events since the surveys were conducted.
There has been a complete change in the way American (and tourist travel since
September 11,2001). People are less likely to fly and the road travel radius has
increased by at least 500 miles. This fact is not addressed in this study and renders the
whole point of the document moot.
Demographics from 1999 would never be used in a business judgment; we need more
real data. This real data could include recent (since 2001) foot traffic surveys in
Carlsbad, specifically, Carlsbad Blvd? State Street? Grand?
We support the document's recommendations, as each recommendation could be an
underlying strategy in itself. How would such strategies be implemented?
9 What is very apparent is the lack of integration of the many agencies endeavoring to ..
improve Tourism in Carlsbad. Who is doing what, what is redundant? We need an on-
going forum that focuses on a consolidated approach to this topic. Such a forum could
consist of the Housing & Redevelopment, Convention and Visitors Bureau, the Art
Office, the CVBA, the Chamber of Commerce, the Library and probably several
cognizant organizations.
Again, while we support the report's recommendations, we also recommend that the
Tourism Policy and Program Strategy becomes "a living document", that it be updated
annually, that business be given a more active role by actively participating thru the
CVBA and the Chamber of Commerce in the formation and update to future reports.
Carlsbad Village Business Associatkh
(760) 433-ssga
cc:
City Council Members
Ray Patchett, City Manager
2'8 *Gsy..
Carlsbad by the Sea
CALIFORNIA
Dear Mayor Lewis and Council Members:
My name is Gary Wagner. I ~rrently work as the front office manager at the Holiday Inn Carlsbad. I
have an extensive background in the hotel business as my family previously worked and owned two Holiday
IMS for over 20 years in two locations. The two Holiday Inns were located in Bloomfield Hillq Michigan,
and Tampa, Florida. In both locations, the city was very supportive, to say the Icast, of the travel and
tourism industry.
home in the Jockey Club. So I am famiiar with the area. When we recmtly sold our last Holiday Inn in For over 12 years I have been visiting my parents on vacation in La Costa, as they have had a winter
Michigan in 1997, I moved down to La Costa where I met my most wonderhl wife and we live happily together in La Costa in a beautiful home on Durango Circle. I am 51 years old and now have been married for the first time all of 1 year.
Knowing my background, I was asked by my boss to attend a meeting of various interests within the
travel and tourism industry on July 31* at the Carlsbad Chamber of Commerce. I have no ties to the Chamber of Commerce, the visitors and convention bureau, or any other such group, nor do I have any ownenhip interest or personal stake with regards to any decision made by the city council with respect to Tourism Policies and Program Strategy. I never said a word at the meeting that was held at the Carlsbad
Chamber of Commerce, nor was I known to anyone except for a fellow associate who attended the meeting
with me 60m Holiday Inn. I had newer met any of these people before. A man by the name of Kurt
Burkhart, as well as many others spoke at that meeting, and I listened attempting to be as neutral as possible
their particular problems or budget in general.
as to their views. I also have never met Mayor Lewis or anyone to date on the city council and do not know
However, I was provided a copy of the Tourism Policy and Program Strategy by the City of Carlsbad.
One good thing about a meeting which is happening on August @, is that it creates an oppottunity to discuss the issues. I have noticed that the Tourism Policy and Program Strategy is dated, 1999-2000. This
is pre September 11, and all the problems that this tragedy caused in the travel and tourism industry. I know
that the strength of our economy as a nation in general as well as Carlsbad's economy is tied in many
respects to the travel and tourism industry. I remember President Bush pleading with Americans to go
back to lie as usual, to take airplane trips, and visit the nations great attrsctions after the September 1 I'
Them is no doubt that Carlsbad is a great community, but there are many choices in the world and tragedy.
believe me there are no assurances that tourists will keep coming to this area in the future with a busii as
usual approach. As a former Holiday Inn 6anchisee I can tell you that a large percentage of our gross room revenue is paid to the 6anchiser which leaves us precious little money for advertising Carlsbad and the
Holiday Inn locally. I am sure this is true of other hotels in the area as well. I hope there is not the mistaken impression by the city council that our local hotels and other tourist attractions have tons of money to spend
on advertising their businesses and Carlsbad in general.
know, it has been a failure for years, and there is no assurance that despite the aggressive plans of the new
I have been going to the La Costa Resort and Spa for years, and I can tell you as a business, as you well
owners that La Costa will succeed. I still go there every week and while it is true that most of the new owners plans are not yet in place, La Costa is relatively empty and this is in the middle of our tourist season
in Carlsbad. At one time La Costa was rather exclusive, and I know the new owners are trying to bring back
La Costa's former superior reputation, but the world has changed and now there are many new resorts and
spas to chose from. I know that La Costa has a tremendous challenge in front of them to make their business profitable.
long time, and many of the hotels in Carlsbad and the greater San Diego area were doing poorly which indicates the cyclical nature of communities, the economy, as well as supply and demand factors.
Also, I don't believe that Legoland is doing the numbers that they expected when they built the park.
I member as well as you do that the Four Seasons at Aviara sat half built and unfinished for quite a
850 Palomar Airport Road Carlsbad, CA 92008 *Telephone: (760) 438-7880 Fax: (760) 438-1015
Reservations 1-800-HOLIDAY (465-4329) *www.CarlsbadHolidayInn.com
Property Operated by Woodbridge Hotel's Inc.
CALIFORNIA
Carlsbad by the Sea
They had been closing two days a week earlier in the year and that was a clear indication of poor numbers.
to the vital travel and tourism industry.
So Carlsbad's cumnt growth and relative success should not be taken for granted especially with respect
As long as I have been coming here, I have always thought as an outsider that Carlsbad was very provincial m its thinking. We talk about San Diego being the finest city and how beautiful the weather is in Carlsbad and there is some truth in those statements. Yet, there is a whole other world out there, and a lot
of choiccs for tourists to make outside of our fair city. Some people believe it or not still confuse us with
boundaries about Carlsbad. Now Carlsbad is ,go+ trcmcndously and I believe land use must be a big Carlsbad, New Mexico. Some ofyou reading this may be very surprised how little is known outside it's
issue with the city.
its mind to do business as usual, ignores data which indicates more support is needed from the city for travel
However, in my view as a relative outsider ifthe city council, or whoever makes such decisions has it in
and tourism, stays provincid, and does not help in a larger way grow Carlsbds reputation as a destination in stature, than they will be making a grave mistake. I am sure the taxes resulting from the travel and
tourism industry totals in the hundreds ofthousands of dollars per year to the city and in my view at the very least a more up to date and aggressive plan should be considered to protect and enhance this stream of
income. We could do better. Travel and tourism is a competitive and essential industry and Carlsbad needs
to understand this as a fact of life, and be receptive and more supportive for the city's own good.
July 3 I* have seen the City of Carlsbad Tourism Policy and hogram Strategy, and many have not bad
Now not all of the people, and the businesses they represent, who were at the Chamber of Commerce on
the chance to study the documents. The consensus at that meeting was that some more time is needed,
my view this cenainly seems reasonable and should be granted. Ofcourse, I welcome any comments or
perhaps 30 to 45 days to study this program, it's strengths and weaknesses and form some sort of reply. In
suggestions and I am at your disposal to discuss any interests or concerns.
sicerelv.
850 Palomar Airport Road Carlsbad, CA 92008 *Telephone: (760) 438-7880 Fax: (760) 438-1015
Reservations 1-800-HOLIDAY (465-4329) *www.CarlsbadHolidayInn.com
Property Operated by Woodbridge Hotel's Inc.
August 1,2002
The Honorable Claude "Bud" Lewis, Mayor and Council Members
City of Carlsbad, City Hall
Carlsbad, CA 92008
BY FACSIMILE
Dear Mayor Lewis and Council Members:
We are requesting that you delay your acceptance of the Tourism Policy and Programs Strategy,
as presented by staff, until members of the local tourism industry have had a chance to consider and comment on the recommendations.
After reviewing the information provided by City staff as well as the conclusions that were drawn
from that study, we attended a meeting that included representatives of about 20 Carlsbad hotels,
retailers, and tourist attractions. The purpose of the meeting was to discuss the potentially far- reaching impact of the report. Specific concerns raised by the group included the relevance of the
study in a post 9/11 environment and inaccuracies of basic data about our own operations which cause us to question other parts of the study. Personally, I did not find sufficient data that would
support a determination that "a Tourism Master Plan does not appear to be necessary". While the City does have a number of existing policies and programs, given our current economic and
tourism environment, these policies and programs should be reviewed, strengthened and incorporated in a new City Tourism Master Plan.
We know that you and the Council are eager to do what is right for Carlsbad and respectfully
request that you delay adopting the Tourism Policy and Programs Strategy for a period of 30 to
60 days. Such a delay will allow the newly-formed Carlsbad Tourism Alliance to formulate and
offer feedback that represents its constituents.
Thank you for your time and consideration
n
cc: Jan Sobel, President, Carlsbad Chamber of Commerce
Kurt Burkhart, Executive Director, Carlsbad CVB
Carni Mattson, President & CEO of San Diego North CVB
LEGO, the LEGO loge,o.lhe brick configuration and LEGOLAND Ire trademarks of the LEGO Gmup.aW2The LEGO Gmup
One LEGOLAND Drive Carlsbad. California 92008 USA * w.legoland.com
August 6,2002
V
The Honorable Claude "Bud" Lewis, Mayor
and Council Members
City of Carlsbad, City Hall
Carlsbad, CA 92008
Dear Mayor Lewis and Council IMembers:
By now, you are aware of the obvious interest that tonight's agenda item has generated
within the travel and tourism industry. Obviously, the Carlsbad Convention and Visitors
Bureau supports all good efforts in support of a healthy industry, which, in turn, helps to
sustain the quality of life that we have all come to expect and enjoy in Carlsbad.
I believe that you need to hear from the very industry that provides the economic engine
for this vitally important segment of our local economy. What became evident only a
few weeks ago was the fact that very few businesses were involved in the process that led
up to the proposal that will be before you this evening. It is hoped that council will defer
any action on tonight's agenda item and allow the Carlsbad Tourism Alliance the
opportunity to review and report back its findings and recommendations to council.
Ms. Anita Boeker, Marketing Manager for the Carlsbad Company Stores, was selected as
the Chair for the independent Alliance, and she is prepared to speak tonight on behalf of
this group.
The travel and tourism industry is very fragile. Although it may seemingly show that
travel is on the rebound after nine-eleven, there are competitive forces at work that make
our job all the more difficult. You will recall that in the weeks following September 11,
President Bush joined with the Travel Industry Association in the first-ever campaign to
encourage Americans to travel and, 'to get on with your lives.' We believe that
continued support of the travel and tourism industry is what will sustain a healthy
economy, and at the Carlsbad CVB, we're doing all that we can to do our part to keep
America traveling and coming to Carlsbad.
Our charge is to promote Carlsbad, and we accomplish that through an active sales effort
that draws heavily on destination branding. We depend on partnerships within the travel
and tourism industry in Carlsbad to leverage our resources in marketing and promotional
efforts. Just as a hotel, attraction or retail outlet pays to promote their individual property
or commercial interest, they have come to rely on the CVB to market Carlsbad, the
400 Carlsbad Village Drive, Carlsbad, California 92008
Carlsbad Convention & Visitors Bureau
www.visitcarlsbad.com - convis@carlsbadca.org
TEL (760) 434.6093 - FAX (760) 434.6056
You may find of interest the attached spreadsheet that highlights over fifty communities
in America that have CVB’s and what those communities spend to support tourism. This
data comes from the International Association of Convention and Visitor Bureaus
(IACVB), our industry trade association.
In short, we believe that many good things can come ahout through the process of
inclusion. The CVB would welcome a delay of 30-45 days for the purpose of giving the
Alliance time to meet and confer and to report back to council at some future date on its
findings and recommendations.
Thank you for your consideration.
Khrt Burkhart
Executive Director
, Sori By Tax %
Dollar Amount from % of Budget from
given CVB tax Occ. Tax CVB CityylState C
Amarillo, TX $
Santa Monica, CA $
SanBernandino. CA $
Carlsbad, CA $
Madison, WI $
Granbury. TX
$
$
Athens, GA
Iowa City, IA
$
Midland, TX $
Abilene. TX $
Brownsville, TX $
Bryan-College, TX $
Cedar-Rapids, IA $
Juneau, AK $
McAllen. TX $ Plane. TX $
Portsmouth, VA $
Kansas City KS $
Sheboygan. WI $
Roanoke, VA $
New Haven, CT $
St. Charles, MO
Montgomery. AL $
$
Peoria, IL $
Jackson, IN $
Brown County, IN $
Salisbury, MD $
Manhattan, KS $
Topeka, KS
Charlottesville, VA $
$
Las Cruces, NM $
Evansville, IN $
Williamsburg. VA $
Edmond, OK $
Stillwater. OK $
Tocoma, WA $
Columbia, MO $
Niagra Falls, NY $
Springfield. IL $
Columbus, OH $
Wheeling. WV $
Grand Forks, ND $
Alachua County, FL $
Ithaca, NY $
Beckley, WV $
Fox Cities, WI $
Galena, IL $
Grand Junction, CO $
Dayton, OH $
Southern Pines, NC $
Holland, MI $
Utica. NY $
Hattiesburg.MS $
Fargo. ND $
York, PA $
Ann Arbor, MI $
Aderdeen. SD $
State College, PA $
VB Budget Tax %
Occupancy
1,468,000 15.0%
1,200,000
500,000
12.0%
441,500 10.0%
10.0%
1,500,000
345,000
8.0%
365,000
7.0%
421,000
7.0%
7.0%
500,000 7.0%
660,000 7.0%
700,000 7.0%
765,000 7.0%
812,000
908,000
7.0%
7.0%
1,000,000 7.0%
1,000,000
569,000
7.0%
250,000
6.5%
250,000
6.0%
840,000
6.0%
999,999
6.0%
6.0%
1,200,000
1,200,000
6.0%
1,347,000
6.0%
5.5%
250,000 5.0%
500,000 5.0%
500,000 5.0%
614,000
621,034
5.0%
676,000
5.0%
846,000
5.0%
5.0%
1,066,000
1,900,000
5.0%
5.0%
220.000
281,000
4.0%
4.0%
850,000 4.0%
900,000 4.0%
4.0%
1,500,000
230,000
4.0%
3.0%
265,000 3.0%
438,000
500,000 3.0%
3.0%
500,000 3.0%
750,000
900,000
3.0%
3.0%
1,050,000
1,125,000
3.0%
1,300,000
3.0%
3.0%
1,500.000 3.0%
325,000 2.0%
470,000
550,000 2.0%
2.0%
825,000 2.0%
1,114,000
1,000,000
2.0%
2.0%
285.000 1 .O%
800,000 1 .O%
1,200,000
20.0% $
43.0% $
20.0% $
3.9% $
16.0% $
24.0% $
86.0% $
31.0% $
40.0% $
50.0% $
65.0% $
45.0% $
100.0% $
57.0% $
28.0% $
43.0% $
100.0% $
75.0% $
90.0% $
29.0% $
25.0% $
33.0% $
40.0% $
16.0% $
100.0% $
75.0% $
80.0% $
70.0% $
17.0% $
52.0% $
88.0% $
60.0% $
100.0% $7
95.0% $
100.0% $
18.0% $
100.0% $
80.0% $
75.0% $
66.0% $
50.0% $
66.0% $
40.0% $
80.0% $
95.0% $
50.0% $
100.0% $
90.0% $
70.0% $
97.0% $
100.0% $
97.0% $
100.0% $
100.0% $
100.0% $
75.0% $
100.0% $
66.0% $
1,468,000
1,004,800
400,000
376,000
800,000
220,000
300,000
386,170
660,000
500,000
615,000
755,000
700,000
548,500
1,000,000
665,000
569,000
240,000
703,500
215,000
1,200,000
999,999
120,000
650,000
250.000
500,000
500,000
420,000
676,000
326,029
1,230,000
830,000
1,683,000
190,000
230,000
1,200,000
600,000
919,000
1,000,000
200,000
225,000
280,000
500,000
412,000
300,000
930,000
607,000
680,000
1,300,000
1,100,000
310,000
352,000
350,000
775,000
1.1 14,000
700.000
285,000
330.000
100.0%
83.7%
80.0%
53.3%
82.2%
63.8%
91.7%
100.0%
100.0%
87.9%
98.7%
86.2%
60.4%
66.5%
100.0%
100.0%
96.0%
86.0%
100.0%
83.8%
100.0%
10.0%
100.0%
48.3%
100.0%
100.0%
68.4%
100.0%
52.5%
11 5.4%
98.1%
88.6%
86.4%
81.7%
70.6%
133.3%
76.6%
66.7%
87.0%
84.9%
63.9%
100.0%
82.4%
103.3%
40.0%
57.8%
60.4%
100.0%
73.3%
95.4%
74.9%
63.6%
93.9%
100.0%
70.0%
100.0%
4 1 .3%
85.2%
Population
200,000
220,000
90,000
400,000
90,000
66,050
147,700
250,000
125,000
150,000
1,800,000
140,000
30,000
110,000
1,500,000
210,000
140,000
51,000
240,000
800,000
300,000
65,000
348,000
35,000
60,000
15,900
11 9,300
50,000
165,000
78,000
168,000
60,000
68,000
40,000
650,000
80,000
125,000
50,000
150,000
60,000
100,000
200,000
130,000
96,000
200,000
26,600
950,000
86,000
70,000
75,000
250,000
110,000
140,000
45,000
312,000
35.000
132,000
88,000
International Association of Convention & Visitor Bureaus (IACVB), 2002