San Diego

New Report Finds San Diego Tourism Showing Slowdown

Tourism is the third largest source of revenue for the City of San Diego.

A newly released report suggests tourism in San Diego may be on the decline. 

The report, released by the San Diego Tourism Marketing District Tuesday, takes a closer look at how well tourism is doing and what is ahead for San Diego. 

Tourism is the third largest source of revenue for the City of San Diego. From business trips and conventions to relaxation and beach trips, it's an industry San Diego relies on heavily. 

In the third quarter of 2015, San Diego saw more than 10.5 million visitors, a slowdown from previous quarters. 

According to the report, the third quarter of 2015 saw a 1.6 percent decline from the first quarter of 2015 in year-on-year visitation growth.

San Diego City councilmember Chris Cate says investing in marketing San Diego should be a top priority.

"We are constantly competing," Cate said. "We cannot just sell San Diego because San Diego is a beautiful city, we have the beaches, we have the bays; we are always competing with other cities."

The outlook for the second half of the year looks good, but the mid-year slowdown has lowered growth projections from of 3.3 percent to just over one percent, the report finds. 

In 2014, San Diego saw an influx of hotel visitors, so officials were anticipating slowing after that.

Officials say U.S. travelers are benefiting from low gas prices and rising wages, which should help support San Diego day visitors.

The total growth for day visitors is forecasted at just one percent for the year. Compare that to the previous projection of 4.5 percent.

Still, tourists and those working in the industry say things are still looking good.

"I've seen a constant stream of tourists from all over the world," said one local worker. 

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