Tourism Generated Nearly $7.5 Million for the City in 2017-18
During fiscal year 2017-18, the City of San Luis Obispo collected nearly $7.5 million in transient occupancy tax (TOT), an increase of 1.9 percent over the previous fiscal year. TOT is collected by all lodging businesses, including hotels, motels, bed and breakfasts, and homestays.
Tourism revenue in the form of TOT is the third largest contributor to the City’s General Fund. The 2017-18 growth continues a year-over-year trend of producing the largest collection ever recorded for the City of San Luis Obispo. Additionally, the collections slightly exceeded the City’s forecasted growth, which in turn contributed over $200,000 in additional revenue directly into the City’s General Fund.
Tourism is also a major contributor to San Luis Obispo’s economy. The City hosted 1.4 million visitors in 2017, an increase of approximately 46,000 visits over 2016 levels. Visitors spent nearly $338.4 million in the City (3.9% more than in the prior year).
In June of 2008, the City Council adopted an ordinance establishing a citywide Tourism Business Improvement District (TBID) and renewed the TBID at its meeting on October 16, 2018. While TOT directly benefits the City’s General Fund, the TBID assessment allows the hotel industry to raise funds solely dedicated to tourism marketing and promotions to attract visitors to San Luis Obispo. Currently the City TBID assessment is 2%. The TBID is inclusive of all lodging properties in the City of San Luis Obispo.
Contact: Molly Cano, Tourism Manager