Tourists Bring $750 Million Into Weho Each Year

Tourism is big business in West Hollywood. Everyone knows that. But what residents might not realize is exactly how much money tourism generates in the city.

According to a 2010 economic impact study, tourism generates $750 million in revenue each year. That is three-quarters of a billion dollars.

“Tourism is the single largest revenue source for the city,” reports Brad Burlingame, president and CEO of the West Hollywood Marketing and Visitor’s Bureau, which commissioned the study. “People shouldn’t underestimate the importance of the tourism industry.”

Of that $750 million tourists spend each year, $577 million comes from spending on things directly related to the tourism industry like hotel rooms, meals and entertainment. The other $173 million comes from indirect spending on items not immediately connected with tourism like retail purchases, magazines/newspapers, cigarettes, grocery items, and drug store purchases.

Each year, 1.157 million visitors from outside of Los Angeles County come to West Hollywood either for a day or overnight. They come for leisure, business, meetings or a special event. Those visitors generate an estimated $14.1 million in hotel taxes and $3.3 million in sales taxes.

“The industry generates the tax revenue that develops the programs that make the lives of residents here in West Hollywood so much better,” Burlingame said.

Visitors who stay in hotels account for 29 percent of the 1.157 million yearly visitors and spend an average of $368 per day in the city.

Visitors who stay in private homes account for 6 percent of the yearly visitors and spend an average of $197 per day.

People who come to the city just for the day (no overnight stay) account for 65 percent of the yearly visitors. They spend an average of $129 per day in the city.

“Understanding who’s coming to our city and how they’re spending their money helps us understand who our customers are,” said Burlingame. “The better we understand our customers, the better we can market to them. We want them to come back.”

Biggest events

The single most popular event in West Hollywood is the annual Halloween Carnival, which the city of West Hollywood estimates attracts 500,000 people.

“Halloween is the biggie,” said Burlingame. “Certainly the night of Halloween draws a tremendous number of people to Santa Monica Blvd. But there are also people who come for the entire weekend, not just for that one night.”

The second most popular event in the city is the annual Gay Pride Parade and Festival, which brings in an estimated 300,000 people during the second weekend in June.

“Gay pride weekend is always packed,” Burlingame said. “And some people come several days early or stay several days after pride. It’s always a big boost to the economy every June.”

The third biggest event in the city is the Sunset Strip Music Festival held in August.

“The Music Festival is rising [in terms of the number of people attending] each year,” Burlingame said. “It’s helping bring new people into the city.”

Burlingame hopes the Sunset Strip develops more events like the Music Festival, noting that the Sunset Strip has strong name recognition that can be used to draw people.

“The Sunset Strip goes back 80 years. Everyone has heard of it,” he said. “There’s so much tradition there. The nightlife is always strong. We hope we can build on that.”

Jobs created by tourism

According to the economic impact study, tourism supports 4,692 jobs in the city. Lauren Schlau, executive vice president of Horizon Consumer Science, which produced the study, broke down that figure in terms of how much money is spent to support those jobs.

In the area of hotels and lodging, it takes $75,900 of tourist spending to support one job. 

In food services, it takes $75,900 of tourist spending to support one job. 

For every $113,900 spent on entertainment, one job is supported.

For every $198,800 spent in retail, one job is supported.

Schlau says of the 23,500 households in the city, the taxes generated by visitors are the equivalent of $741 per household. In other words, if tourism didn’t exist in West Hollywood, each household would have to pay an additional $741 to get the equivalent amount of services from the city.

“Tourism is major part of West Hollywood. Residents live a lot better because of the money they bring to the city,” Schlau said. “Love your tourist, hug a tourist.”

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