Another good article. It brings to mind the similar situation that the Valley is facing. How many hotels can the Valley truly support? At first, the City of Napa exuberantly approved new hotels as the City was slowly growing its own allure and interest to visitors. Now, although they’re still getting approved, it’s a zero sum game. Occupancy rates continue to fall as new hotels are approved and some are built.
The traffic study for the First and Soscol (Foxbow) Hotel argued that there wouldn’t be any added traffic because visitors choosing the new hotel were coming anyway and would have stayed in an existing downtown hotel. Pretty clear about zero sum.
To your point about “commissioners”, the Chambers of Commerce support and welcome each new hotel even though some of their existing members are hotel owners who now stand to lose even more occupancy and employees who will be enticed to the new hotel.
Thanks for another thought provoking, well-written article. I always enjoy reading your posts.
This one, however, I think is a little off the mark. While they share similar root causes, overbuilding capacity is different than the overexploitation of natural resources (tragedy of the commons.) Overbuilding destroys a market, overexploitation destroys a resource. I get it, you're saying "Napa Valley" is a natural resource, and while it is a geographic appellation and an incredibly beautiful natural landscape, you are describing the wine market writ large, whose challenges are applying to just about every wine region on the planet.
Another good article. It brings to mind the similar situation that the Valley is facing. How many hotels can the Valley truly support? At first, the City of Napa exuberantly approved new hotels as the City was slowly growing its own allure and interest to visitors. Now, although they’re still getting approved, it’s a zero sum game. Occupancy rates continue to fall as new hotels are approved and some are built.
The traffic study for the First and Soscol (Foxbow) Hotel argued that there wouldn’t be any added traffic because visitors choosing the new hotel were coming anyway and would have stayed in an existing downtown hotel. Pretty clear about zero sum.
To your point about “commissioners”, the Chambers of Commerce support and welcome each new hotel even though some of their existing members are hotel owners who now stand to lose even more occupancy and employees who will be enticed to the new hotel.
Keep these great articles coming!
I wonder to what extent this is also a Sonoma County or Russian River Valley story?
Oh Lord! That is some good stuff!
Hi Ted,
Thanks for another thought provoking, well-written article. I always enjoy reading your posts.
This one, however, I think is a little off the mark. While they share similar root causes, overbuilding capacity is different than the overexploitation of natural resources (tragedy of the commons.) Overbuilding destroys a market, overexploitation destroys a resource. I get it, you're saying "Napa Valley" is a natural resource, and while it is a geographic appellation and an incredibly beautiful natural landscape, you are describing the wine market writ large, whose challenges are applying to just about every wine region on the planet.