San Diego, December 1, 2025
San Diego’s tourism industry is experiencing a downturn, with hotels reporting a decrease in occupancy rates and local businesses feeling the impact on revenue. Factors such as the reduction of post-pandemic travel trends and fewer international visitors contribute to this decline, raising concerns about the local economy. While some experts anticipate stabilization in tourism numbers for the near future, the city must adapt to these changing conditions to maintain its status as a popular destination.
San Diego’s Tourism Decline: Hotels Report Fewer Guests
Declining Tourism Impacts Local Economy
San Diego, CA – Recent data indicates a significant slowdown in San Diego’s tourism sector, with hotels experiencing a noticeable decrease in guest numbers. This trend raises concerns about the city’s economic outlook as 2025 concludes.
Declining Hotel Occupancy Rates
Throughout 2025, San Diego’s hotel occupancy rates have been on a downward trajectory. In the week of October 5–11, 2025, the average occupancy rate was 77.3%, a 3.6% decrease compared to the same period in 2024. This decline places San Diego eighth among the top 25 U.S. markets and fourth in the Western competitive set.
Impact on Local Businesses
The downturn in tourism has also affected local businesses. For instance, Action Sport Rentals, which offers paddleboards, Jet Skis, and powerboats, reported a 17–18% drop in revenue compared to the previous year. To attract customers, the owner has been offering promotions during holiday periods like Thanksgiving.
Factors Contributing to the Decline
Several factors are contributing to the slowdown. The post-pandemic “revenge travel” boom is subsiding, leading to reduced discretionary spending on luxury vacations and extended hotel stays. Additionally, international visitation, particularly from China, has decreased significantly, dropping from 119,000 visitors in 2019 to just 54,370 this year.
Outlook for 2026
Despite the current decline, there is cautious optimism for 2026. Industry leaders anticipate a stabilization in tourism numbers, with expectations of a “flat” performance compared to the previous year. However, the industry remains vigilant, monitoring economic indicators and traveler behavior to adapt to changing conditions.
Background Context
San Diego has long been a popular destination, known for its favorable climate, beaches, and attractions. The city experienced a significant tourism boom in the years following the pandemic, with hotel occupancy rates reaching 74.3% in 2024, placing it third among the top 25 U.S. markets. However, recent trends suggest a shift in the tourism landscape, prompting stakeholders to reassess strategies to maintain the city’s appeal to visitors.
Frequently Asked Questions (FAQ)
What is the current hotel occupancy rate in San Diego?
The average hotel occupancy rate in San Diego for the week of October 5–11, 2025, was 77.3%, a 3.6% decrease compared to the same period in 2024.
How has the decline in tourism affected local businesses?
Local businesses, such as Action Sport Rentals, have reported a 17–18% drop in revenue compared to the previous year, leading to the implementation of promotions to attract customers.
What factors are contributing to the slowdown in tourism?
Factors include the subsiding post-pandemic “revenge travel” boom, reduced discretionary spending, and a significant decrease in international visitation, particularly from China.
What is the outlook for San Diego’s tourism in 2026?
Industry leaders anticipate a stabilization in tourism numbers, expecting a “flat” performance compared to the previous year, with ongoing monitoring of economic indicators and traveler behavior.
What is the background context of San Diego’s tourism industry?
San Diego has been a popular destination, with hotel occupancy rates reaching 74.3% in 2024, placing it third among the top 25 U.S. markets. Recent trends suggest a shift in the tourism landscape, prompting reassessment of strategies to maintain the city’s appeal.
Key Features of San Diego’s Tourism Decline
| Feature | Details |
|---|---|
| Current Hotel Occupancy Rate | 77.3% for the week of October 5–11, 2025, a 3.6% decrease from 2024. |
| Impact on Local Businesses | Action Sport Rentals reported a 17–18% drop in revenue compared to the previous year. |
| Contributing Factors | Decline in “revenge travel,” reduced discretionary spending, and decreased international visitation, especially from China. |
| Outlook for 2026 | Anticipated stabilization in tourism numbers, expecting a “flat” performance compared to the previous year. |
| Background Context | San Diego’s hotel occupancy rates reached 74.3% in 2024, placing it third among the top 25 U.S. markets. |
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Author: STAFF HERE SAN DIEGO WRITER
The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
