Calaveras County Annual Tourism Revenue Negative Growth
2022 Annual Tourism Revenue ‘Real Purchasing Power’ Actually 5% Lower Than 2019
Fact Pattern
The Calaveras Visitors Bureau (CVB) has received $1,752,199.42 in governmental funding, as follows:
$1,396,584.00 from Calaveras County - as of July 22, 2019 disbursement
$355,615.42 from the City of Angels Camp - as of FY 18-19 Budget
April 25, 2023:
Presentation to the Calaveras County Board of Supervisors by CVB Office Manager Jessica Johnson and CVB Board of Directors members Sandra Beals (Vice President) and Kathryn Gallino (President) to the Calaveras County Board of Supervisors. [Kathryn Gallino represents Calaveras County on the CVB Board of Directors as Calaveras County’s Economic and Community Development Director]
MyMotherLode.com reported on the presentation, publishing that “CVB staff and board members noted that visitor spending in Calaveras County had gradually been increasing prior to the COVID pandemic. It was around $180 million in 2012 and peaked at around $220 million in 2019. It dropped back below $180 million in 2020, but spiked back up to $216 million in 2021.” https://www.mymotherlode.com/news/local/3060794/calaveras-visitors-bureau-draws-some-heat-from-supervisors.html
Calaveras County’s 2022 annual tourism revenue is approximately 5% less than Calaveras County’s 2019 annual tourism revenue in inflation adjusted dollars.
The Calaveras Visitors Bureau (CVB) and the Calaveras County government neglected to account for substantial inflationary adjustment diminishing the real purchasing power of the U.S. dollar in 2022 by approximately 15.5% since 2019.
Data published in VisitCalifornia.com’s report, The Economic Impact of Travel California, 2022p (preliminary), April 2023, revealed 5% negative growth in Calaveras County’s 2022 annual tourism revenue of $246,017,306 when adjusted for annual inflation relative to 2019’s $222,702,443.52 annual tourism revenue. https://industry.visitcalifornia.com/research/economic-impact?sort=county®ion=Calaveras
Calaveras County’s actual 2022 annual tourism revenue represents negative growth of approximately $11,197,059 in annual tourism revenue when adjusted for inflation over 2019’s annual tourism revenue of $222,702,443.52.
Calaveras County would actually have needed approximately $257,214,365 in 2022 annual tourism revenue to be on par with 2019 annual tourism revenue.
The US Bureau of Labor Statistics Consumer Price Index (CPI) inflation calculator demonstrates that $246,017,306 in annual tourist revenue (year ending December 2022) has approximately the same real purchasing power as $213,000,000 in annual tourist revenue (year ending December 2019).
The real purchasing power of $246,017,306 in 2022 annual tourist revenue equates to an approximate decrease in real purchasing power of $33,017,306 over 2019.
The inflationary pressure on hotel and STVR room rates resulted in an 18% statewide increase in hotel and STVR rates in 2022, according to VisitCalifornia.com’s The Economic Impact of Travel California, 2022p (preliminary) report.
Factoring the substantial increase of 18% in hotel and STVR rates, along with inflationary adjustments as calculated by the US Bureau of Labor Statistics CPI inflation calculator, it becomes evident that Calaveras County annual tourist revenue for year ending December 2022 has actually declined in real dollars since the most recent pre-pandemic year (2019).
May 3, 2023:
CVB Office Manager Jessica Johnson was quoted in a Calaveras Enterprise article,“...in 2021 Calaveras County raked in $216 million dollars in travel related spending, contributing $17.5 million to state and local tax dollars and creating almost 3,000 jobs.” https://www.calaverasenterprise.com/articles/news/supervisors-criticize-visitors-bureau-for-not-doing-enough-to-promote-west-end-of-county/
June 13, 2023:
Calaveras County Board of Supervisors Regular Agenda Item # 15. Action Item - Administrative Office [ID # 7251] 1) Conduct the Fiscal Year 2023-24 CEO Recommended Budget Hearings; 2) Receive a presentation on the CEO Recommended Budget; and 3) Provide the CEO with direction for any requested changes to the CEO Recommended Budget. http://calaverascountyca.iqm2.com/Citizens/FileOpen.aspx?Type=14&ID=1840&Inline=True
CVB Office Manager Jessica Johnson stated to the Board of Supervisors during the budget hearing that the “Calaveras Visitors Bureau had $493,000 in its checking account,” continuing, “what we need to finish through the rest of this fiscal year, and what we need to finish through the end, probably, take us through November to cover operating costs and contract obligations and marketing costs… so that would be about $300,000. And then there is what we have in our reserve in savings. That’s about $100,000.”
CVB Office Manager Jessica Johnson revealed that the available funds include the City of Angels Camp contribution and Angels Camp Museum funds, which includes museum admission and other generated revenues.
During the fiscal year 2023-2024 budget hearing the Calaveras County Board of Supervisors and the Calaveras County CEO proposed reducing CVB’s preliminarily budgeted $400,000 for FY 2023-2024 by $125,000, redirecting $50,000 of those funds to the Calaveras County Chamber of Commerce. CVB’s share of transient occupancy tax allocation is proposed to decrease from 25% in 2022 to 11% in 2023.
Morgan Gace, former CEO of the Calaveras Chamber of Commerce (currently a Calaveras Visitors Bureau Board of Directors volunteer member) addressed the Calaveras County Board of Supervisors regarding Calaveras County’s tourism revenue, quoting data obtained from VisitCalifornia.com’s report, The Economic Impact of Travel California, 2022p (preliminary), April 2023. Ms. Gace elaborated that Calaveras County tourism revenue had increased $30 million to $246 million from 2021 ($216 million).
Referencing data from page 7 of the aforementioned VisitCalifornia.com report of overall direct travel output to California, Ms. Gace enthused that the county’s $30 million increase in annual tourism revenue was a substantial gain over the prior year.
CVB mischaracterized, intentionally or mistakenly, 2022’s $246,017,306 annual tourism revenue as “unprecedented amounts of tourist dollars coming into Calaveras County,” by neglecting to account for inflationary adjustment.
The Calaveras County Board of Supervisors and CEO also neglected to make this necessary public inquiry regarding the illusion of a substantial increase of revenue in real dollars.
June 27, 2023:
Calaveras County Board of Supervisors Regular Agenda Item #13 - Resolution - Administrative Office (ID # 7401) Adopt a Resolution approving Fiscal Year 2023- 24 Recommended Budget for the distribution of Transient Occupancy Taxes to the Calaveras Visitors Bureau. https://calaverascountyca.iqm2.com/Citizens/FileOpen.aspx?Type=14&ID=1842&Inline=True
Calaveras County Board of Supervisors voting on final FY 2023-2024 budget to approve $275,000 for CVB.