Tourism drives Napa Valley economy amid growing pains

Aug 9, 2016

(NBBJ) - With tourism now driving the economy, the question before Napa Valley is how to preserve its soul, the rural character that has made it a booming visitor destination.

On the one side, city and county officials extol a robust economy and more jobs as a result of the climbing tourism numbers. On the other side, long-time residents are concerned about the quality of life, too many wineries, too much traffic, and maintaining the rural Napa character that increasingly draws people to the county without “loving it to death.”

Both sides made their case at Impact Napa, presented by the Business Journal at The Meritage Resort and Spa Friday.

 

The event also featured a conversation with Warren Winiarski, owner of Acadia Vineyards, and founder of Stag’s Leap Wine Cellars. Winiarski also created the winning 1973 cabernet sauvignon at the “Judgment of Paris” tasting 40 years ago this year, which for the first time equaled Californa wines to those in France. He was interviewed by author and wine industry attorney Richard Mendelson, of Dickenson Peatman & Fogarty.

In 1985, there were 12 restaurants in Napa, and today there are more than 80, with more than 500 wineries, and 150 hotels.

Traveler spending in Napa has more than doubled since 1998, with more than 3 million visitors annually. In 2015, it saw the largest growth in visitor spending, an increase of almost 9 percent over the previous year, and the highest percentage gain of all of California’s 58 counties. Tourists spent $1.27 billion, with a total of $116 million in tax revenue, according to Visit Napa Valley.

In 2000, the transient occupancy tax brought $4.3 million into the city of Napa. In 2016 that number is on track to be $18 million.

A panel discussion at the event included David Graves, managing member, Saintsbury Winery, and Alfredo Pedroza, chairman of the Napa County Board of Supervisors, and Dan Mufson, president, Napa 2050.

Napa Vision 2050 is a group of 14 affiliates that was formed last year, whose mission is to protect and preserve the general welfare of the community and advocate responsible planning.

Both Mufson and Graves raised concerns that rapid growth in tourims has affected Napa’s water supply, and added traffic and housing woes. Mufson also noted that despite the economic growth, 43 percent of families in Napa live below the poverty level.


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