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Visitor arrivals to Los Angeles forecast to grow from 50 million visitors in 2018 to nearly 70 million in 10 years’ time --> growing demand for more accommodations. In 2022, Los Angeles generated $22 billion in spending from 46.4 million visitors, reaching 91% of 2019’s levels. In 2023, Los Angeles is expected to reach near full recovery (99% vs. 2019), driven by domestic visitors at 44.1 million (102% vs. 2019), with international visitors at 6.2 million visitors (84% vs. 2019).
Source: L.A. Tourism
Leisure demand has driven much of the hotel development in West LA, the Valley and Hollywood, while business and group demand has driven development in Downtown LA and at Los Angeles International Airport (LAX).
While room nights are projected to grow 29% by 2028, forecasted visitor growth of as much as 40% suggests that the current pipeline of proposed and approved hotel development in the City may be insufficient. In 2018, short-term rentals generated an estimated $500 million in revenue in the City of Los Angeles and nearly $800 million in the nine submarkets analyzed. Legislation is projected to reduce the supply of short-term rentals which would create additional demand for hotel lodging, over and above the levels forecasted above.
Only 48% of hotels in the Greater Los Angeles area are rated by visitors as very good or excellent in TripAdvisor—placing Los Angeles behind 11 other competing destinations.
Source: L.A. City Tourism Master Plan
Source: tourism.lacity.org
Sections:
1. Overview of how the City’s Incentive Agreements work
2. The framework used to approve the Incentive Agreements
3. The process for developing the Incentive Agreements
4. The typical features and terms of the Incentive Agreements
5. A summary table of specific key issues for all five agreements reviewed (approved by the City between 2005 and 2015 based on the Office of the City Controller’s review).
6. Series of recommendations for possible future agreements.
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