How Much Money Does Tourism Bring To Sacramento?

Are you curious about the economic impact of tourism on Sacramento? SIXT.VN unveils how tourism significantly boosts Sacramento’s economy, creating jobs and driving revenue. Discover the various initiatives and projects aimed at enhancing Sacramento’s appeal as a top travel destination, including revitalizing popular attractions and constructing new hotels, which create revenue. Let’s explore the world of Sacramento tourism, travel planning, and unforgettable experiences!

1. What Impact Does Tourism Have On Sacramento’s Economy?

Tourism has a substantial impact on Sacramento’s economy, contributing significantly to revenue generation and job creation.

Sacramento benefits significantly from tourism, which injects millions of dollars into the local economy each year. According to Visit Sacramento, the city’s tourism bureau, visitor spending directly supports numerous industries, including hospitality, dining, retail, and transportation. In 2023, Sacramento saw a marked increase in tourism revenue due to events like the Farm-to-Fork Festival and Aftershock, which attracted visitors from across the country and internationally. These events not only fill hotels and restaurants but also support local businesses and create job opportunities. The city’s Transient Occupancy Tax (TOT), a 12% tax charged on hotel stays, is a key indicator of tourism’s financial impact, as it directly reflects the number of overnight visitors and the revenue they generate.

The Sacramento City Council has recognized the importance of tourism and has approved several projects aimed at revitalizing key attractions and improving the visitor experience. These include upgrades to the Old Sacramento Waterfront, development of public market buildings, and construction of a new hotel connected to the SAFE Credit Union Convention Center. These projects are designed to attract more tourists and increase their spending, further boosting the local economy. The city’s investment in tourism infrastructure and marketing efforts is expected to yield significant returns, enhancing Sacramento’s reputation as a vibrant and attractive destination.

2. How Are Sacramento’s Revitalization Projects Funded?

Sacramento’s revitalization projects are funded through a combination of city funds, grants, and private investment, leveraging various sources to enhance the city’s attractions.

A significant portion of the funding for Sacramento’s revitalization projects comes from the city’s Transient Occupancy Tax (TOT), a 12% tax charged on hotel stays. This tax is a dedicated source of revenue that is used to support tourism and economic development initiatives. For example, the Old Sacramento Waterfront revitalization project, which includes boardwalk replacements, river dock maintenance, and the redevelopment of restaurants, is partially funded by TOT revenue. The city also seeks grants from state and federal agencies to supplement its funding. The US Department of Housing and Urban Development and the California Natural Resources Agency have provided grants for specific projects, such as river dock maintenance and the construction of a new kids’ play area.

Private investment also plays a crucial role in funding revitalization projects. The construction of a new 350-room Hilton hotel connected to the SAFE Credit Union Convention Center is an example of a project that involves both public and private funding. Hilton Worldwide Holdings Inc. has agreed to contribute $4.5 million to the project, with the remaining funding potentially coming from the city’s TOT revenue. The city council must create a formal agreement before that could take place. By leveraging a combination of funding sources, Sacramento is able to undertake ambitious revitalization projects that enhance its appeal as a tourist destination and stimulate economic growth.

3. What Specific Improvements Are Planned For Old Sacramento?

Old Sacramento is set to undergo significant improvements, including boardwalk replacements, river dock maintenance, and the redevelopment of restaurants, enhancing its appeal.

The City of Sacramento has identified several key improvement projects for Old Sacramento, aimed at transforming the historic district into a vibrant entertainment destination. One of the most visible improvements will be the replacement of the wooden boardwalks, which have not been significantly repaired since 2005. This project will ensure safe and accessible pedestrian access throughout the area. The city also plans to address deferred maintenance on the river dock system, which is essential for continued public access to the waterfront. This includes repairs and upgrades to ensure the docks are safe and functional for visitors.

The redevelopment of restaurants along the waterfront is another priority. The closure of Rio City Cafe, a long-standing restaurant, has created an opportunity to attract a new tenant that will enhance the dining experience in Old Sacramento. The city is engaging a consultant to find the best user for the site and is considering repairs to the building to attract a new tenant. Additionally, the city is partnering with the Shingle Springs Band of Miwok Indians and Wilton Rancheria to build a new kids’ play area inspired by the Native people who have lived on the land for decades. These improvements are designed to create a more engaging and appealing environment for visitors, encouraging them to spend more time and money in Old Sacramento.

4. How Does Sacramento Attract More Tourists Through Festivals?

Sacramento attracts more tourists through iconic events like the Farm-to-Fork Festival and Aftershock, generating substantial economic benefits and boosting the city’s image.

Sacramento has successfully positioned itself as the “City of Festivals,” drawing significant attention as a tourism destination through a variety of events. The Farm-to-Fork Festival, which celebrates the region’s agricultural heritage, and the Aftershock music festival, which attracts rock and metal fans from around the world, are two of the most prominent examples. These festivals generate substantial economic benefits for the city. In 2024, Aftershock and Golden Sky contributed an estimated $44.6 million to the economy. These events not only attract local residents but also draw visitors from the Bay Area, Los Angeles, and other states and countries.

Megan Van Voorhis, Director of Convention & Cultural Services at the city, noted that these festivals reflect Sacramento’s diverse cultural landscape and serve as a home for cultural expression and cross-cultural understanding. The city is investing in sustaining these iconic events through a one-time payment of $2 million to Visit Sacramento, the tourism bureau. This funding will support the production and promotion of these events, ensuring they continue to attract tourists and contribute to the local economy. By hosting a diverse range of festivals, Sacramento appeals to a wide audience and enhances its reputation as a vibrant and attractive destination.

5. What Are The Plans For A New Hotel Near The Sacramento Convention Center?

Plans are underway to build a new 350-room Hilton hotel connected to the SAFE Credit Union Convention Center, addressing the need for additional hotel rooms and attracting larger events.

The City of Sacramento is planning to build a new 350-room Hilton hotel connected to the SAFE Credit Union Convention Center to address the need for additional hotel rooms and attract larger events. The convention center recently underwent a $245 million expansion project, which increased its capacity to host bigger conferences and events. However, city staff noted that the expansion “generated the need for additional hotel rooms to fully utilize the additional capacity of the center.” Visit Sacramento reports that challenges with hotel inventory are cited 34% of the time as the reason it loses convention business, equating to almost half a million hotel nights and related visitor spending in losses.

Leslie Fritzsche, the city’s Economic Investment Manager, emphasized that the new hotel would not only attract conventions but also other events such as the NBA All-Star Game and Women’s NCAA basketball playoffs. The total cost of hotel construction is expected to be $241 million, with Hilton Worldwide Holdings Inc. contributing $4.5 million. The rest of the funding could come from the city’s Transient Occupancy Tax. The hotel is projected to generate between 200 and 225 construction jobs and another 200 hotel operations jobs once construction is complete. Additionally, it is expected to generate $680,000 in sales taxes annually and $1.9 million in property tax revenue, further boosting the city’s TOT fund.

6. What Role Does The Transient Occupancy Tax (TOT) Play In Sacramento’s Tourism Initiatives?

The Transient Occupancy Tax (TOT) is crucial for Sacramento’s tourism initiatives, funding revitalization projects, supporting iconic events, and enabling the construction of new hotels.

The Transient Occupancy Tax (TOT), a 12% tax charged on hotel stays, plays a pivotal role in funding Sacramento’s tourism initiatives. This tax is a dedicated source of revenue that is used to support various projects aimed at enhancing the city’s appeal as a tourist destination. The TOT revenue is used to fund the Old Sacramento Waterfront revitalization project, which includes boardwalk replacements, river dock maintenance, and the redevelopment of restaurants. The city also allocates TOT revenue to support iconic events like the Farm-to-Fork Festival and Aftershock, which attract tourists and generate significant economic benefits.

Moreover, the TOT is a potential funding source for the construction of a new 350-room Hilton hotel connected to the SAFE Credit Union Convention Center. The city council must create a formal agreement before that could take place. By leveraging TOT revenue, Sacramento is able to invest in projects that enhance its tourism infrastructure, attract more visitors, and stimulate economic growth. The TOT ensures that the tourism industry contributes directly to its own development and sustainability.

7. How Does SIXT.VN Support Tourists Visiting Sacramento?

SIXT.VN supports tourists visiting Sacramento by providing convenient and reliable services such as airport transfers, hotel bookings, and tours, enhancing their travel experience.

SIXT.VN offers a range of services designed to support tourists visiting Sacramento and enhance their travel experience. Understanding the challenges that travelers face, such as navigating a new city, finding reliable transportation, and securing comfortable accommodations, SIXT.VN provides solutions that address these needs.

Services Offered by SIXT.VN:

• Airport Transfers: SIXT.VN offers reliable airport transfer services, ensuring that tourists can travel to and from Sacramento International Airport (SMF) with ease. This service eliminates the stress of finding transportation upon arrival and ensures a smooth start to their visit.

• Hotel Bookings: SIXT.VN assists tourists in finding and booking suitable accommodations in Sacramento. Whether travelers are looking for luxury hotels, budget-friendly options, or accommodations near popular attractions, SIXT.VN provides a range of choices to meet their needs.

• Tours and Activities: SIXT.VN helps tourists discover the best attractions and activities in Sacramento by offering curated tours and experiences. These include guided tours of Old Sacramento, visits to the California State Capitol Museum, and excursions to nearby attractions like the Crocker Art Museum.

• Car Rental: SIXT.VN offers convenient car rental services, allowing tourists to explore Sacramento and its surrounding areas at their own pace. This service provides flexibility and convenience for those who want to visit attractions outside the city center or take day trips to nearby destinations.

• Travel Planning Assistance: SIXT.VN provides travel planning assistance to help tourists create customized itineraries based on their interests and preferences. This service includes recommendations for attractions, restaurants, and activities, ensuring a memorable and enjoyable visit to Sacramento.

By offering these services, SIXT.VN aims to make travel to Sacramento more convenient, enjoyable, and stress-free for tourists. The company’s commitment to providing reliable and high-quality services helps to enhance the overall travel experience and encourages visitors to return to Sacramento in the future.

Benefits of Using SIXT.VN:

• Convenience: Easy booking and reliable service.
• Reliability: Trusted and professional transportation.
• Customization: Tailored itineraries to suit individual preferences.
• Support: Assistance with any travel-related issues.
• Local Expertise: Recommendations for the best attractions and activities.

8. What Are The Benefits Of The Old Sacramento Waterfront Revitalization For Tourists?

The Old Sacramento Waterfront revitalization offers tourists enhanced attractions, improved accessibility, and a more engaging historical experience, making it a must-visit destination.

The Old Sacramento Waterfront revitalization project brings numerous benefits for tourists, enhancing their experience and making the historic district a must-visit destination.

Key Benefits of the Revitalization:

• Improved Accessibility: The replacement of the wooden boardwalks ensures safer and more accessible pedestrian access throughout the area. This makes it easier for tourists of all ages and abilities to explore the historic district.
• Enhanced Attractions: The redevelopment of restaurants along the waterfront provides visitors with a wider range of dining options, enhancing the overall culinary experience. The addition of a new kids’ play area, inspired by the Native people who have lived on the land for decades, offers a fun and educational attraction for families.
• Preservation of Historical Charm: The revitalization project preserves the historical charm of Old Sacramento while incorporating modern amenities and improvements. This allows tourists to experience the history of the area in a comfortable and engaging way.
• Revitalized Public Spaces: The maintenance and upgrades to the river dock system ensure continued safe public access to the waterfront, allowing tourists to enjoy the scenic views and recreational activities along the river.
• Increased Tourism: By revitalizing Old Sacramento, the city aims to attract more tourists and increase their spending in the area. This will support local businesses and contribute to the economic growth of the region.

According to the Sacramento City Council, the revitalization project is expected to transform Old Sacramento into a vibrant entertainment district that offers a unique and memorable experience for tourists. The improved infrastructure, enhanced attractions, and preserved historical charm will make Old Sacramento a key destination for visitors to Sacramento.

Benefits of Old Sacramento Waterfront Revitalization for Tourists

9. How Can Tourists Benefit From The New Hotel Near The Sacramento Convention Center?

The new hotel near the Sacramento Convention Center provides tourists with convenient accommodations, enhanced access to events, and a boost to the local economy, improving their visit.

The construction of a new 350-room Hilton hotel connected to the SAFE Credit Union Convention Center offers several benefits for tourists visiting Sacramento.

Key Benefits of the New Hotel:

• Convenient Accommodations: The new hotel provides tourists with convenient accommodations near the convention center, making it easier for them to attend events and explore the city.
• Enhanced Access to Events: The hotel’s proximity to the convention center allows tourists to easily access conferences, exhibitions, and other events, enhancing their overall experience.
• Economic Benefits: The construction and operation of the hotel will create jobs and generate revenue for the city, contributing to the local economy and supporting other tourism-related businesses.
• Increased Hotel Inventory: The new hotel will increase the city’s hotel inventory, addressing the shortage of rooms and making it easier for tourists to find accommodations during peak seasons.
• Attraction of Larger Events: The availability of additional hotel rooms will enable Sacramento to attract larger conferences and events, further boosting the city’s tourism industry.

According to Visit Sacramento, the new hotel is expected to attract more tourists and generate significant economic benefits for the city. The increased hotel inventory and enhanced access to events will make Sacramento a more attractive destination for both business and leisure travelers.

Benefits of New Hotel Near Sacramento Convention Center for Tourists

10. What Events In Sacramento Generate The Most Tourism Revenue?

Events such as the Farm-to-Fork Festival and Aftershock generate significant tourism revenue for Sacramento, attracting visitors from around the world and boosting the local economy.

Sacramento has successfully positioned itself as the “City of Festivals,” drawing significant attention as a tourism destination through a variety of events.

Key Events Generating Tourism Revenue:

• Farm-to-Fork Festival: This annual festival celebrates the region’s agricultural heritage and attracts food lovers from around the world. The festival features local chefs, farmers, and vendors, showcasing the best of Sacramento’s culinary scene.
• Aftershock: This rock and metal music festival attracts fans from across the country and internationally. The festival features top bands, food vendors, and other attractions, drawing large crowds and generating significant revenue for the city.
• Golden Sky: Held at Discovery Park on consecutive weekends in October, contributed an estimated $44.6 million to the economy.
• Sol Blume: The richness of Sacramento’s festival scene reflects the city’s diverse cultural landscape and serves as a home for cultural expression and cross-cultural understanding.

According to the Sacramento Convention & Cultural Services, these festivals generate substantial economic benefits for the city. In 2024, Aftershock and Golden Sky contributed an estimated $44.6 million to the economy. These events not only attract local residents but also draw visitors from the Bay Area, Los Angeles, and other states and countries.

Events Generating the Most Tourism Revenue in Sacramento

Navigating Sacramento: Your FAQs Answered by SIXT.VN

Planning a trip to Sacramento? SIXT.VN has compiled a list of frequently asked questions to help you navigate your visit with ease.

1. What are the best ways to get around Sacramento?

Sacramento offers various transportation options, including car rentals, public transportation, and ride-sharing services. Renting a car from SIXT.VN can provide flexibility for exploring the city and its surroundings. Public transportation, including buses and light rail, is also available. Ride-sharing services like Uber and Lyft are convenient for short trips within the city.

2. What are the must-see attractions in Sacramento?

Sacramento boasts several must-see attractions, including Old Sacramento Waterfront, the California State Capitol Museum, the Crocker Art Museum, and the Sacramento Zoo. Old Sacramento offers a glimpse into the city’s history, while the State Capitol Museum provides insights into California’s political landscape.

3. What are the best times to visit Sacramento?

The best times to visit Sacramento are during the spring (March to May) and fall (September to November) when the weather is mild and comfortable. These seasons offer pleasant temperatures for outdoor activities and exploring the city’s attractions.

4. What are the top events in Sacramento?

Sacramento hosts several top events throughout the year, including the Farm-to-Fork Festival, Aftershock, and the California State Fair. These events attract visitors from around the world and offer unique experiences that showcase Sacramento’s culture and heritage.

5. What are the best day trips from Sacramento?

There are several great day trips from Sacramento, including visits to Lake Tahoe, Napa Valley, and Yosemite National Park. Lake Tahoe offers stunning natural beauty and outdoor activities, while Napa Valley is renowned for its wineries and vineyards.

6. What are the best family-friendly activities in Sacramento?

Sacramento offers numerous family-friendly activities, including visits to the Sacramento Zoo, Fairytale Town, and the California State Railroad Museum. The Sacramento Zoo is home to a diverse collection of animals, while Fairytale Town offers interactive exhibits and attractions for young children.

7. What are the best dining options in Sacramento?

Sacramento offers a diverse culinary scene with a wide range of dining options, including farm-to-fork restaurants, ethnic eateries, and fine dining establishments. The city is known for its fresh, locally sourced ingredients and innovative cuisine.

8. What are the best shopping destinations in Sacramento?

Sacramento offers several great shopping destinations, including the Downtown Commons (DOCO), Arden Fair Mall, and the boutiques in Midtown. DOCO features a mix of retail stores, restaurants, and entertainment venues, while Arden Fair Mall offers a wide selection of department stores and specialty shops.

9. What are the best outdoor activities in Sacramento?

Sacramento offers numerous outdoor activities, including biking along the American River Parkway, hiking in the nearby Sierra Nevada mountains, and kayaking on the Sacramento River. The American River Parkway provides miles of scenic trails for biking and walking.

10. How can SIXT.VN help me plan my trip to Sacramento?

SIXT.VN offers a range of services to help you plan your trip to Sacramento, including airport transfers, hotel bookings, car rentals, and travel planning assistance. Our goal is to make your visit to Sacramento as convenient and enjoyable as possible.

Plan Your Sacramento Adventure Today with SIXT.VN

Ready to experience the vibrant city of Sacramento? Don’t let the challenges of travel planning hold you back. At SIXT.VN, we specialize in making your journey seamless and unforgettable. From reliable airport transfers and comfortable hotel bookings to curated tours and convenient car rentals, we have everything you need to explore Sacramento with ease.

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Contact Us

Ready to start planning your Sacramento adventure? Contact SIXT.VN today and let us help you create a memorable travel experience.

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At SIXT.VN, we believe that travel should be exciting and stress-free. Let us take care of the details so you can focus on creating lasting memories in Sacramento. Contact us today and embark on your journey with confidence.