Rauch made the observation at San Diego North Convention and Visitor Bureau's annual meeting at the California Center for the Arts in Escondido. More than 300 business and civic leaders gathered to hear about trends related to the embattled tourism, hospitality and travel industries.

Fewer conventions and meetings dealt a severe blow to San Diego, the nation's third-largest travel destination--even before Sept. 11 brought travel to a virtual halt. Rauch says room-tax collections in north San Diego County fell 4.4% last year to $49.9 million, while countywide, 4.6% fewer rooms were filled.

The northern part of the county is recovering well so far this year, Rauch says: San Diego ranked seventh among the top 25 U.S. travel markets for room occupancy and prices through February.