The 2026 Visit Santa Barbara Tourism Summit convened industry leaders, economists, and public officials at the Hilton Santa Barbara Beachfront Resort to assess the economic forces shaping the South Coast’s travel sector. Under the theme “A Look Ahead: Insights, Advocacy and the Future of Tourism,” the event addressed challenges such as shifting consumer behavior, rising operational expenses, and policy instability. n nKathy Janega-Dykes, president and CEO of Visit Santa Barbara, highlighted tourism’s foundational role in the regional economy, supporting over 15,000 jobs and generating more than $2 billion in annual visitor expenditures. She noted that tax revenues from tourism amount to approximately $82.9 million per year, translating to roughly $1,000 in savings per household. n nEmphasizing sustainable development, Janega-Dykes outlined efforts to align tourism growth with community values through inclusive planning and stakeholder collaboration, aiming to maintain authenticity while staying competitive in a changing market. n nMore than 200 attendees, including Santa Barbara County Supervisor Laura Capps and City Councilmember Oscar Gutierrez, participated in discussions focused on long-term resilience. Keynote speaker Chuck Davison, vice president of commercial strategy at Tourism Economics, described the current economic environment as one of cautious hiring and spending, marked by persistent inflation and weak consumer sentiment. n nHe cited the highest trade-weighted tariff levels since the 1930s, contributing to elevated prices and increased federal revenue. Manufacturing has declined for ten consecutive months, while immigration and trade regulations continue to affect labor availability. n nOn a positive note, productivity improvements linked to artificial intelligence are adding an estimated 0.2 percentage points to GDP growth. However, spending remains concentrated among higher-income households, with the top 10 percent driving most consumer activity, including $544 billion annually on leisure travel. n nDavison warned that uncertainty surrounding federal funding for the Department of Homeland Security could trigger another government shutdown, potentially costing the travel industry $6 billion, as seen in previous disruptions. n nDespite near-term volatility, he expressed optimism for the medium term, projecting improved stability by 2027. Domestically, travel demand is up 5.5 percent, TSA checkpoint traffic is rising, and hotel occupancy is nearing 2019 benchmarks. International visitation to the U.S. remains low, though the 2026 FIFA World Cup is expected to boost overseas arrivals by 1.1 percent. n nCaroline Beteta, head of Visit California, affirmed the state’s position as the nation’s leading tourist destination, noting the Central Coast’s strong performance relative to other regions. She spotlighted the “Ultimate Playground” marketing campaign, targeting families and returning visitors with imagery of scenic coastlines and favorable weather. n nA closing panel addressed mounting pressures in hospitality and retail, including regulatory burdens and rising labor costs. Lynn Mohrfeld of the California Hotel and Lodging Association discussed the impact of Los Angeles’s new wage ordinance, which will gradually raise pay for hotel and airport workers to $30 per hour by 2028. The phased increases, starting at $22.50 this year, have raised concerns about job reductions and higher consumer prices across the sector. n nRachel Michelin of the California Retailers Association pointed to the growing dominance of online platforms, questioning the viability of physical stores amid escalating compliance and wage requirements. n nOverall, the summit underscored tourism’s critical economic function while acknowledging the turbulent landscape ahead, shaped by economic fluctuations, policy shifts, and evolving traveler expectations. n
— News Original —An economic unpacking of the region — and a look toward the horizon — took place Wednesday afternoon at Visit Santa Barbara’s annual 2026 Tourism Summit, where tourism leaders, economists, business owners, and elected officials gathered at the Hilton Santa Barbara Beachfront Resort. n nThe summit, themed A Look Ahead: Insights, Advocacy and the Future of Tourism, arrived at an unsteady moment in the broader economic sphere, marked by shifting travel behavior, policy volatility, rising costs, and a consumer base still spending — but increasingly uneasy about it. n n“Tourism decisions ripple across lodging, retail, restaurants, workforce, and community services,” said Kathy Janega-Dykes, president and CEO of Visit Santa Barbara. n nTourism, she emphasized, remains a keel of the South Coast economy, supporting more than 15,000 local jobs, generating over $2 billion in annual visitor spending, and contributing roughly $82.9 million in yearly tax revenue — an amount that equates to about $1,000 in tax savings per household. n nLooking ahead, Janega-Dykes said the organization is focused on shaping growth that aligns with community values rather than overwhelming them. n nShe pointed to strategic planning efforts aimed at strengthening community trust through stakeholder engagement, while meeting evolving visitor expectations and remaining “authentic and competitive.” n nMore than 200 hospitality professionals, business leaders, and public officials attended the summit, including Santa Barbara County Supervisor Laura Capps and Santa Barbara City Councilmember Oscar Gutierrez. n nThe keynote economic outlook came from Chuck Davison, vice president of commercial strategy and partnerships at Tourism Economics, who described the current climate as a “slow to hire, slow to fire” economy. n nDavison outlined national trends with direct local consequences, including the highest trade-weighted tariff rate since the 1930s, which he said is pushing up consumer prices while also raising federal revenue. Manufacturing, he noted, has been in a 10-month slide, while immigration and trade policy continue to ripple through labor markets. n nAt the same time, productivity gains from artificial intelligence are beginning to register, contributing an estimated 0.2 percent to GDP growth. n n“The gap between high- and low-income households remains,” Davison said, noting that the top 10 percent of U.S. households now drive the majority of consumer spending. He cited $544 billion in annual leisure travel spending nationally, even as consumer confidence continues to lag. n n“People are spending money,” Davison said. “But they’re not happy about it.” n nPolicy uncertainty further roughened the waters. Davison warned that a potential federal government shutdown tied to Department of Homeland Security funding could again rattle travel markets, noting that the last shutdown cost the industry an estimated $6 billion. n n“The near outlook is soft and bumpy,” Davison said, describing an economy working through stubborn inflation, weaker labor markets, policy uncertainty, tepid investment, and weak sentiment. “But if you look farther down the path, the outlook is more promising,” with less uncertainty projected by 2027. n nOn the travel side, Davison said domestic travel is up 5.5 percent, TSA checkpoint volumes continue to rise, and hotel demand is approaching 2019 levels. Overseas visitation to the U.S., however, remains in decline — though the 2026 FIFA World Cup is expected to deliver a bump, with a projected 1.1 percent increase in international travel. n nCaroline Beteta, president and CEO of Visit California, placed Santa Barbara within the statewide picture, noting that California remains the nation’s top tourism destination and that the Central Coast is outperforming much of the rest of the state. n n“Growth is positive, but marginal,” Beteta said. n nShe highlighted Visit California’s current marketing campaign, The Ultimate Playground, aimed largely at families and repeat visitors. Scenes of calm waters, clear skies, and sun-soaked days filled the screen — imagery that, in this case, required little embellishment. n nThe summit closed with a more sober panel discussion on hospitality and retail trends, moderated by bouchon Santa Barbara owner Mitchell Sjerven, with panelists Lynn Mohrfeld of the California Hotel and Lodging Association and Rachel Michelin of the California Retailers Association. n nAmong the dominant themes were regulatory pressure, rising operating costs, and the growing tension between labor standards and business sustainability. n nPanelists pointed to Los Angeles’s recently approved ordinance phasing in a $30 hourly minimum wage by 2028 for hotel and airport workers — a move tied to preparations for the 2028 Olympic Games. The policy, which raises wages to $22.50 an hour this year with annual increases, has already set off a broader showdown with industry groups warning of job cuts, higher prices, and ripple effects across California’s hospitality sector. n nAlong similar lines, Mohrfeld noted the growing appeal of online marketplaces over brick-and-mortar storefronts, raising questions about whether small businesses can survive mounting labor and compliance costs. n nThe tone of the summit was fact driven and occasionally rosy — with a consistent message: tourism remains essential to the South Coast economy, even as the industry heads into choppier waters, navigating shifting economic currents, policy uncertainty, and tourists whose expectations continue to rise.