Santa Monica Hotel Tax Revenue Drops 13.2% to $54.4 Million as Day Visitors Swell
Updated
Updated · smdp.com · Jul 10
Santa Monica Hotel Tax Revenue Drops 13.2% to $54.4 Million as Day Visitors Swell
1 articles · Updated · smdp.com · Jul 10
Summary
Santa Monica collected $54.4 million in hotel tax in 2025, down from $62.7 million a year earlier, even as total room supply rose 4% after renovated properties fully reopened.
Occupancy slipped to 72.3% from 75%, and hotel guest volume fell 21% to 422,800, while day visitors climbed to 88% of all visitors despite generating just 27% of total visitor spending.
International travelers partly offset the weakness: they made up 50% of visitors, spent $212 a day on average, and lifted total visitor spending 9% to $996.6 million, with international spending up 28% to $601.9 million.
That spending gain was largely price-driven, with inflation-adjusted visitor spending only $290.8 million versus a 2017 peak of $766.6 million, leaving the city with more nominal dollars from a weaker overnight tourism base.
Satisfaction also deteriorated in 2025, and among past visitors who said Santa Monica had worsened, 60.8% cited more homelessness, 43.7% traffic and congestion, and 43.3% safety concerns.