#Tourism #Long Beach #Economic Impact

Long Beach's Economic Boom from Visitor Spending

According to a recent report by Kleinhenz Economics, the city of Long Beach, California, is experiencing remarkable economic growth as a direct result of visitor spending. In 2023, it generated an impressive $1.97 billion in economic impact, establishing a $213 million increase compared to its pre-pandemic levels in 2018. This data highlights the essential role that tourism plays in the local economy, supporting businesses, creating jobs, and contributing significantly to public revenue.

The report, commissioned by Visit Long Beach, was authored by economists Dr. Robert Kleinhenz and Megan Anaya, who conducted an extensive analysis of visitor activity, including both overnight and day visitors from outside the area. The findings estimate that visitor spending has supported 14,600 jobs in Long Beach and produced $785 million in labor income, which averages around $53,850 per employee.

One of the report’s key insights revealed that visitor spending generated $359 million in overall tax revenues for the city, which is vital for funding essential services. This includes $171 million in state and local tax revenues and $38.2 million from the transient occupancy tax levied on hotel stays by overnight visitors. Such figures reflect the city's robust recovery and acceleration of its tourism sector, which is evidently outperforming other areas in Los Angeles County.

Steve Goodling, the President and CEO of Meet Long Beach, emphasized that the city’s burgeoning tourism market is largely attributed to efforts in promoting Long Beach as a prime destination for conventions and events. Data from Smith Travel Research affirms that Long Beach recorded a higher revenue per available room than San Diego, indicating a strong resurgence in the hospitality sector that continued well into 2024.

The Influence of Conventions and Attractions

Goodling also noted that the Long Beach Convention and Entertainment Center is a crucial component driving visitor spending. Beyond the convention center, attractions such as the historic Queen Mary and the Aquarium of the Pacific, along with major events like the Acura Grand Prix of Long Beach, contribute significantly to the area's appeal.

In 2013, Long Beach began modernizing the Convention Center to enhance its attractiveness as a conference venue, collaborating with ASM Global to develop a setting that fosters communication and connection—key aspects of successful events.

To date, the city has invested over $85 million in the renovation of the Convention Center, which includes state-of-the-art facilities intended to streamline the planning process for both planners and attendees. This includes Pacific Ballroom, a venue specifically redesigned with modern amenities that accommodate various types of events.

A study conducted on the ballroom's business impact suggested it alone could generate around $427 million over a decade. Goodling credits these strategic enhancements for the substantial rise in transient occupancy tax collections and convention business within the city, showcasing the potential longevity of these growth trends.

Recognition for the Convention Center has surged over the years, receiving **Gold awards for