Fewer people are staying in Santa Cruz County hotels, according to the Santa Cruz Conference and Visitors Council, which reported a decrease in hotel room occupancy and average daily rates during the first half of 2009.
Occupancy was down 17 percent in the county from the same time in 2008, according to the CVC report. The trend was reflected statewide, as occupancy fell 11 percent from last year, according to Smith Travel Research, a company that tracks hospitality industry trends.
Scotts Valley and San Lorenzo Valley hotels are feeling the slump in fewer stays coupled with declining rates, especially this summer.
“It’s more of decrease than that for us,” said Rich Higdon, general manager of Scotts Valley Hilton. “The economy has really been affecting us negatively.”
Higdon said people are just not traveling as much this year, which he has seen firsthand through the decline in stays at his hotel.
A summer survey conducted by TripAdvisor.com of more than 1,200 respondents showed that out of more than 1,000 homeowners nationwide, 9 percent said uncertainty in the mortgage market would affect their travel plans — including the number of trips taken and how much money they’d spend.
Respondents were also questioned about stock market angst, with 12 percent indicating the recent unpredictability would affect their travel plans.
The CVC report found that the average daily room rate for 2009 was down about 9 percent, or $104.07 in Santa Cruz County compared with $113.90 during the same period in 2008. The average daily rate statewide was $98.66, also down about 9 percent from last year’s $108.10.
Higdon said room rates at the Hilton are down about 10 percent to 12 percent from last year. On average, occupancy has been down 40 percent.
“We’ve been struggling all year long. In some instances, business is off 50 percent this year compared to last,” Higdon said.
But the hotel is hoping 2010 will see better circumstances — Higdon said the Hilton has booked a lot of weddings, bar mitzvahs and social events for next year.
Brookdale Inn & Spa, tucked up the Highway 9 corridor, has seen a decline of 15 percent in room occupancy from last year, according to the hotel’s general manager, Andy Poon. Room rates are down 10 percent, Poon said.
Poon hopes that the recent renovations and opening of the hotel’s new pool this week will bring in more business.
“Hopefully, we’ll bounce back,” Poon said. “The economy has really hit everyone.”
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