The City of Paso Robles:
Economic and Fiscal Impact of Tourism
February 2025
Stafford Nichols
Research Manager
[email protected]
• Paso Robles Tourism
• Methodology
• Economic Impact of
Tourism
• Fiscal Impact of Tourism
• Questions
• Economic Consulting Firm based in
Los Angeles, founded in 2006
• Practice Areas:
- Economic Forecasting
- Policy Analysis
- Economic Development
- Economic Impact
o Tourism Impacts – work
with Travel Boards across the
country. Work with other
wine regions as well.
Tourism has grown dramatically in
Paso Robles over the last few
decades
TOT increased from $4M in
2014, to $10M in 2023
Roughly 2.5 million visitors annually
Average trip is 1.8 days
79.2% stay more than a single
day
85% coming from California, but
growing international visitors
40 50
60 70
80 90
100
110
120
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Index ( Base Year = 2019 )
SLO County has experienced the most growth in
Direct Visitor Spending of all wine regions
Mendocino County Monterey County Napa County
San Luis Obispo County Santa Barbara County
0 2
4 6
8 10
12 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
$ Millions
City of Paso Robles Transient Occupancy Tax Revenue
Tourism and wine are responsible for much of the
economic growth in the region
17 wineries when Paso Robles American
Viticultural Area (AVA) was found in 1983,
now just over 300 wineries
Ship wine to over 50 countries
Tourism and wine have many “spillover” effects
and impact other industry sectors
Every 1 wine job supports 1.1 jobs in other
industries in the region
0 5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
Acres
Year
Bearing Acres of Grapes
0 5,000
10,000
15,000
20,000
25,000
30,000
35,000
1970197319761979198219851988199119941997200020032006200920122015201820212024 City of Paso Robles Population
Research Objective = measure tourism spending in
the City of Paso Robles, and its ripple effects
throughout the economy
1) Geographic Scope:
2) Model: Multi-regional Input-Output
3) Dollar Year: 2024
4) Data Source:
• California Employment Development Department
(EDD) Payroll Data
• Bureau of Economic Analysis
• City Tax Records
• Industry Reports
• Travel Surveys
• And others
United
States
California
SLO County
City of Paso
Robles
Direct
Effects:
immediate
economic
activity
generated by
visitor
spending
Indirect Effects
business-to-business
transactions driven
by tourism
Induced Effects
spending from
individuals who earn
income as a result of
direct and indirect
tourism activities
Food and Bev
Lodging
Wine
Retail
Attractions
Transportation
Supply chain
effects
Household
spending
Multi-regional Input-Output Model – Multiplier Effect:
Economic
Impact
City of Paso
Robles (M)
County Balance
(M)
Rest of
California (M)
TOTAL
(M)
Direct $450.8 $450.8
Indirect $13.9 $82.4 $87.0 $183.3
Induced $2.9 $51.7 $39.0 $93.6
Total $467.6 $134.1 $126.0 $727.7
• 1/5th of all City
jobs are
supported by
Tourism
$0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 Wholesale Suppliers (Perishables)
Real Estate
Grocery Stores
Home Ownership
Gas Stations
Retail Stores
Amusement and Recreation
Wineries
Sit-down Restaurants
Hotels and Motels
ECONOMIC IMPACT
TOP 10 INDUSTRIES IMPACTED BY TOURISM
EARNED INCOME City of Paso Roles (M) County Balance (M) Rest of California (M) Total (M) Direct $151.3 - - $151
Indirect $4.2 $25.7 $33.5 $63
Induced $1.1 $16.5 $13.4 $31
Total $156.6 $42.1 $46.9 $246
JOBS SUPPORTED City of Paso Roles County Balance Rest of California Total Direct 3,331 - - 3,331
Indirect 71 446 341 858
Induced 22 299 183 504
Total 3,424 745 524 4,693
City Tax Revenue Direct Secondary Total
Sales Tax $8,278,561 $67,388 $8,345,949
Transient Occupancy Tax $10,044,919 $0 $10,044,919
Property Tax $1,594,229 $40,338 $1,634,568
Other Tax $856,992 $21,652 $878,644
Total $20,774,702 $129,378 $20,904,080
Total tax generated
across City, County, State
and Federal Gov’s
Tax Measures:
• Measure E-12 (2012, extended 2024) - Increased sales tax by 0.5% • Measure J-20 (2020) - Increased sales tax by 1%
• Measure F-22 (2022) - Increased TOT 1% (borne by visitors) Visitor Contributions…
to Measures E-12 and J-20 in 2023 accounted for approximately $5.0 million, or 35%, of the $14.4 million spent on street
maintenance/infrastructure, fire department funding, and police. account for 25% of Measure J-20 revenues, which enabled: Households would need to pay an
additional $1,779
annually to maintain
the same level of
government revenue
• 2023 Visit SLO Cal survey found:
- 59% of City residents said they
were concerned about tourism’s
impact on crowds, congestion and
traffic
- 62% felt tourism increases prices
Thank You!
• Fiscal Impact of the City of Paso
Tourism (tax revenue generated
from the tourism activity occurring
within the City of Paso Robles)
Direct Secondary Total
City
$20,774,702 $129,378 $20,904,080
Sales Tax $8,278,561 $67,388 $8,345,949
Transient Occupancy Tax $10,044,919 $0 $10,044,919
Property Tax $1,594,229 $40,338 $1,634,568
Income Tax $0 $0 $0
Social Insurance Tax $0 $0 $0
Corporate Profits Tax $0 $0 $0
Other Tax $856,992 $21,652 $878,644
County $7,186,786 $180,960 $7,367,746
Sales Tax $827,856 $20,086 $847,942
Property Tax $5,728,322 $144,941 $5,873,264
Income Tax $0 $0 $0
Social Insurance Tax $0 $0 $0
Corporate Profits Tax $0 $0 $0
Other Tax $630,608 $15,933 $646,540
State $25,862,198 $557,517 $26,419,715
Sales Tax $19,868,547 $368,803 $20,237,350
Property Tax $509,865 $12,901 $522,766
Income Tax $1,539,451 $61,394 $1,600,845
Social Insurance Tax $563,664 $18,363 $582,027
Corporate Profits Tax $1,823,597 $55,691 $1,879,288
Other Tax $1,557,073 $40,366 $1,597,439
Federal $28,005,751 $955,064 $28,960,815
Sales Tax $0 $0 $0
Property Tax $0 $0 $0
Income Tax $6,331,728 $253,656 $6,585,385
Social Insurance Tax $16,147,270 $543,123 $16,690,393
Corporate Profits Tax $3,536,426 $107,999 $3,644,424
Other Tax $1,990,327 $50,286 $2,040,613
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