Visitors to San Jose were responsible for an estimated $1.19 billion impact on the local economy, according to a report released today by the San Jose Convention & Visitors Bureau (SJCVB). The San Jose Visitor Study: Market Profile and Economic Impact report is based on a year-long study conducted by The Survey and Policy Research Institute at San Jose State University (SPRI) that examined the ability of the tourism industry to weather tough economic times, even as other industries still face uncertainty.

Commissioned by the SJCVB, the report found that between FY 2003 and FY 2004, San Jose attracted 6.7 million visitors, an increase of nearly 10 percent over the 2001-2002 report, resulting in $1.16 billion in direct visitor spending.

San Jose`s Tourism Industry Stimulates Economy, Community

As a result of the visitor spending, San Jose`s tourism industry stimulated the economy by generating 16,000 full-time jobs in San Jose, a 19% increase from the 13,500 jobs created in FY 2001-02. Recent growth in San Jose`s tourism sector includes the reopening of downtown`s 86-room Hotel Montgomery in July2004.

Tourism means more than dollars and cents to local residents, however. It helps spur community development and civic pride. In the last two years, downtown San Jose has seen its revitalization continue with more dining and entertainment options.

In all, visitors spent $252 million on shopping, $218 million on meals and beverages, $217 million on car rental, $146 million on lodging, $142 million on other daily transportation, $113 million on recreation and entertainment, and $70 million on groceries and other convenience items.

Business Travelers, Convention-goers Lead Way

The study also showed that convention visitors were by far the largest source of revenue for the hotels, representing 57%. Business travelers who did not attend a convention were the second largest source, accounting for 20% -- bringing the business traveler representation total to 77% of San Jose lodging industry revenues. Convention and meeting attendees spent an average of $117 per day while visiting the city.

Since the last study was conducted, the city has undertaken a number of initiatives to drive convention business. Most notably is the Bureau`s diversification efforts, which reached out to market segments beyond Silicon Valley`s technology and tradeshow markets, such as National Association, State Association, Religious, Ethnic, and National Corporate market segments.

We believe this study`s results show the fruits of the Bureau`s labor to spread the word about San Jose as a destination for meetings and conventions, said Dan Fenton, president and CEO of the SJCVB. With the large impact that tourism dollars have on the city`s well-being, the Bureau plays a key role and will continue to lead efforts to bring more visitors to San Jose.

Leisure Visitors Represent 36% of Total Visitor Number

Leisure visitors have also made an important impact in San Jose, according to the study. During the period covered by the report, San Jose attracted 2.4 million leisure travelers (non-business) that represented 36% of the total visitor number. Of those traveling to San Jose for personal reasons, 38% were in town for a special event, 28% were on vacation and 24% were visiting friends or relatives.

Other visitors made their way to San Jose for a day to explore the many sights and sounds that the nation`s 11th largest city has to offer, from museums to world-class dining experiences and a safe, walkable downtown. The study reported that 4 million day visitors came to San Jose, down 6% from the 4.3 million day visitors in FY 2001-02. Though they only visited for a few hours, the $58 each day visitor spent was a valuable addition to the local economy - representing $235 million, up 15% from FY 2001-02.

We are pleased to see increasing numbers of visitors making their way to San Jose for a weekend getaway or a day of fun and relaxation, said Cyril Isnard, Board Chairman for the San Jose Convention & Visitors Bureau. We hope their positive experiences in the city will encourage them to return and to tell family and friends about `The Gateway to the Bays.`