San Francisco Travel Association releases its visitors and lodging forecast

Monday, September 18, 2023

The San Francisco Travel Association unveiled its updated 2023 Visitor and Lodging Forecast at the inaugural Visitor Impact Summit, hosted in collaboration with the Hotel Council, and held at the prestigious Fairmont San Francisco.

This forecast reflects the city’s evolving tourism landscape, highlighting significant growth in demand for hotel rooms, increased hotel revenues, and a robust convention calendar. The projections also emphasise the city’s continued recovery and its role as a global destination, showcasing its resilience and appeal to visitors from around the world.

Demand and Revenues Surge:

Demand for hotel rooms in San Francisco has seen a remarkable 15% year-to-date increase, resulting in a substantial 30% rise in hotel revenues.

Projected Hotel Occupancy:

The average hotel occupancy rate for 2023 is anticipated to reach 66.8%, marking a significant upswing from the 62% recorded in 2022.

Impact of Events and Conventions:

 Events and conventions have played a pivotal role in driving lodging performance in San Francisco. The Moscone Center, a premier convention and exhibition facility, is set to host 35 events this year, contributing to nearly 665,000 hotel room nights.

Strong Convention Calendar:

 Major events like Dreamforce and APEC’s Economic Leaders’ Week and CEO Summit are scheduled at the Moscone Center, attracting tens of thousands of attendees and putting San Francisco on the global stage.

Hotel Room Inventory Growth:

 The city is expected to experience a 4% increase in hotel room inventory in 2023 compared to the previous year.

Average Daily Rate (ADR) Increase:

San Francisco hotels are forecast to achieve an ADR of $246.09 in 2023, reflecting a substantial 7.7% rise from 2022.

Revenue-per-Available Room (RevPAR) Growth:

RevPAR is projected to reach $164.29 in 2023, marking a robust increase of 15.9% from the previous year.

Visitor Volume and Spending:

Visitor volume to San Francisco is forecast to rise by 6.2%, reaching 23.3 million, while visitor spending is expected to reach $8.5 billion, marking a 13.9% increase from 2022.

Recovery Continues:

While San Francisco’s tourism industry is steadily recovering, it is expected to take some more years before it surpasses the record-breaking pre-pandemic levels.

International Visitor Contribution:

Nearly two million international visitors, known for longer stays and higher spending, are projected to contribute $4.2 billion to the city’s tourism economy this year.

    Strong Overseas Markets:

The U.K., Europe, and India remain robust overseas visitor markets for San Francisco, while Mexico and Canada continue to be the city’s largest international visitor source markets.

    San Francisco International Airport (SFO):

Comparing August 2019 with August 2023, SFO reported that 94% of weekly international flights have resumed, with weekly seat capacity at 93.6% of pre-pandemic levels. New airlines have been added to the SFO network in 2023, strengthening international connectivity.

    Positive Momentum:

San Francisco’s economic recovery and tourism industry’s resurgence have brought renewed excitement and energy to the city, making it a top global destination for visitors from around the world.

These promising statistics and projections highlight San Francisco’s resilience and its status as an attractive destination for travelers, with a dynamic mix of conventions, events, and tourism contributing to the city’s economic vitality and global prominence.

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