Could trail other cities through 2015
According to Smith Travel Research, August occupancy at San Diego hotels rose only 1% from July, while Orange County rose 4%, L.A. 2.3%, and San Francisco 2.5%. Year-to-date figures are similar: San Diego occupancy is up 0.8%, versus 3.3% for Orange County, 1.8% for L.A., and 3% for San Francisco.
Encinitas-based hotel expert Jerry Morrison says San Diego is hurt by the drop in funding of the tourism authority from $30 million to $12 million. The sequester is also hitting San Diego as government business drops, says Morrison. He believes San Diego will lag the other three California coastal cities through 2015.