Looking at the present economic situation in the country, the individual economic scene of a particular city may not look so good. However, the situation with the Bay Area's economy is completely different. The city’s economy looks bright and shiny with some successful growth in IT and industrial sector, boom in commercial real-estate, and immense growth of the tourism sector in and around the city. Here is a detailed overview about this.
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Tourism and its influence on SFO’s economy:
Since many years, California’s Bay Area has been regarded as a major tourist destination in the country. Every year, many tourists come here to relax and rejuvenate in the cool climate of San Francisco. Also, the city’s proximity to several other touristy spots, including the twin winery cities of Napa and Sonoma Valley makes it a more favorable and favorite destination among many family and single travelers. According to a report conducted in 2007, San Francisco has been regarded as the third city with highest number of tourist attractions in the USA. Due to the massive growth of tourism in this city, there is a significant growth in job industry as well. In addition, several other industries including hotels, restaurants, transportation, and airlines are highly benefited due to the ever-growing tourism industry in San Francisco.
As per an estimate, the city solely contributes more than $ 8.2 billions from its tourism sector towards the nation’s economy. That justifies that the tourism industry not only influences the state’s economy, but also the country’s overall economic situation. Even after the recent economic downturn, the city’s tourism industry was not highly affected. However, a number of significant changes has been noticed in both hotel and airlines industry. At present, the city’s tourism industry is flourishing. It has been estimated that the tourist number may rise this year and cross the margin of 16 million.
Both hotel and resort industry has seen a significant growth in the past few years. The city has now a number of upscale hotels from some top hotel chains. In this epic real-estate growth and development, major strategy planning companies like HMG are also involved. With an aim to create a plush ambiance and perfect club-like setting, this strategy planning company is dealing with many major hotel chains for establishing new accommodation units in the Bay Area. For that, a number of events and meeting are scheduled to be held in 2013. Looking at these innovative changes, it can be said that the Bay Area economy for 2013 looks bright.
Software and IT growth:
In addition, the city has also experienced a major boom in both software and IT industry. This has in fact played another major role in the growth of hotel industry in San Francisco and its surrounding area. As per several reports, the number of business travelers to this city has doubled in the period of 2005-2013. This has triggered the growth of hotel and convention centers. Therefore, the city has experienced a growth in the overall real-estate as many new projects of micro-apartments and extended-stay hotels are about to commence here. As a result, both hotel and tourism industry are getting benefited and so does the San Francisco economy. Some of the major popular software companies have established their newest head-quarters in this city. Twitter, Craigslist.org, Wikimedia and Sales Force are some of the recently established companies in San Francisco.
Agriculture and San Francisco Economy:
Agriculture may not be a major influencing factor for San Francisco’s economy, but it relates to some of the major industries in town. As the climatic condition in San Francisco is very favorable, the agricultural output is always positive. This has certainly contributed a lot to both San Francisco and California’s economy.
Click here for more information about hotel occupancy rates in San Francisco for 2013.
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Article written by Hotel Managers Group
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