SAN DIEGO — San Diego's tourism industry is facing significant challenges this holiday season, with hotel managers reporting disappointing reservation numbers and concerns about the trend continuing into 2026.
The Horton Grand Hotel's General Manager, Todd Husted, said the hospitality sector has been struggling throughout 2024, describing tourism as "slow" for most of the year.
"Luckily, we do have Christmas parties and events that always helps out, but pretty much as we get through the month, it does get slower and slower," Husted said.
The impact has been severe enough that Husted had to close one of the hotel's restaurants for Thanksgiving, giving staff extended time off for the holidays.
"It's just one of things I had to do business wise," Husted said.
The downturn began in March 2024, according to Husted, who noted a consistent downward trend since then.
"Pretty ever since March of this year, we've seen the downward trend," Husted said.
Data from the San Diego Tourism Authority's citywide definite request room night statistics show the seasonal pattern clearly. Summer months from May to July had the highest bookings, with more than 100,000 reservations per month. However, those numbers drop significantly heading into fall and winter.
For December alone, there are more than 34,000 definite rooms booked, reflecting the seasonal decline.
"We're not gonna hit our forecasts, we're not gonna hit our budgets, and we've been having to adjust accordingly ever since then," Husted said.
The broader tourism picture shows concerning trends across multiple metrics. As of July 2024, visitor spending is down 2.1%, while hotel room demand and occupancy rates are also declining, according to the San Diego Tourism Authority.
Husted attributes the downturn to financial uncertainty and layoffs that have occurred throughout the year, creating a ripple effect in the tourism sector.
Looking ahead, the outlook remains challenging.
"Probably going to 2026, it's a little, little scary going into next year as well. Really don't see much of a rebound until maybe Q3 at this point," Husted said.
Despite the challenges, there may be a silver lining for local residents. Husted encourages people considering staycations to take advantage of the current low rates available due to decreased demand.
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