QUARTERLY REPORT // 2020 JULY • AUGUST • SEPTEMBER A LETTER FROM THE CEO
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Six months ago, I would have never predicted that in October we would still be battling the current level of economic hardships associated with the COVID-19 pandemic. Our county businesses are still notably impacted by the virus and the associated state mandates and restrictions. Our hospitality industry also continues to experience the significant impacts from the state public health emergency. Restaurants are still not allowed to have full-capacity indoor dining, our museums and family attractions have yet to open, youth and collegiate sports are on pause, and hotel group and corporate business is absent. For those who have been able to operate during the crisis, we have been humbled by their resilience and creativity. We know this is frustrating. We also know this won’t last forever. There is some positive news. On September 29, San Joaquin county was moved into tier 2 (red) of the state’s blueprint for reopening the economy. This means businesses in several sectors have been given the green light to open indoor operations with modifications on occupancy. We have also been encouraged by the numbers we are seeing from our hotel partners. Occupancy in August was down just 0.7%, and Average Daily Rate (ADR) was up 9.7% year over year. September shows similar optimism with these metrics holding steady. It has been difficult to pinpoint the factors behind the relief the local hotel community is experiencing, but factors such as interstate travel and increased distribution center activity are possible factors. We are also hearing about a significant number of locals staying in our hotels – a trend not unique to Stockton that is also happening throughout the Central Valley region. While this may not be normal traffic for the hotels, it helps, and we look forward to welcoming back business travelers and our youth sports teams soon. While Visit Stockton has always made our local business community a priority, at the onset of the crisis our organization made the quick pivot from a destination marketing organization to a local community information and business support organization. The Visit Stockton team continues to step up to support the local community and our partners. Our most significant ongoing efforts are below (more details on these topics are available on the following pages): Stockton Healthy Pledge – Launched in May, the voluntary pledge is now 250 businesses strong and growing. stocktonhealthypledge.com City of Stockton Small Business Relief Grant Program – Visit Stockton has partnered with the City’s Economic Development Department to administer this program for our business community. Stockton Sports Unite – A Visit Stockton led effort focused on giving back and supporting those in need that has brought together our local professional sports teams, the Stockton Kings, the Stockton Heat, the Stockton Ports and our friends at University of the Pacific Athletics. visitstockton.org/sports-unite LocalHood – Stockton is proud to be one of three pilot cities (along with Toronto and Indianapolis) for the new digital platform that combines storytelling and business listings to support our local small businesses. localhood.com/stockton Local Business Support – We continue to grow our Stockton Savings Pass (stocktonsavingspass.com) to allow local businesses a free marketing opportunity to promote their business. We have also created blog content and listings supporting a variety of different business segments. visitstockton.org If there is one thing we have taken away from this pandemic, it is our organization’s ability to rapidly adapt to the needs of our partners and the greater Stockton business community. We are so very proud of our business support efforts, our newfound and strengthened partnerships, and our team’s ability to be nimble and adapt to the needs of our community in a crisis. We are here for you. If there is an effort, project, idea, or cause that you believe we should focus on, please do not hesitate to share. While we cannot take on every project, we know the needs and gaps in our community may allow us to pass the torch to another great community organization. Recovery is a team effort, and we are all truly in this together. Stay well and continue to be #StocktonTrue
Wes Rhea, CTA, CDME Chief Executive Office