The new report from Ernst & Young says the Orange County hotel market displayed "diversity and resilience," slipping about 9% in occupancy for the first half of the year, but the percentage of decline has been slowing in each successive month this year.
Lodging industry ad campaigns have helped boost business, the report says, and it quotes county officials who forecast a 5% increase in occupancy this summer as tourism recovers.
Although the Anaheim Convention Center suffered cancellations immediately following Sept. 11, the convention center began the year with what the report calls "an unprecedented 65,000 attendees for the National Association of Music Merchants" convention.
The report notes that a number of new luxury resorts have opened or are under construction along the Orange County and San Diego County coasts, which will add 4,200 rooms. Many hotels, such as the Inn at Laguna and Surf & Sand Resort, have undertaken renovations to stay competitive with the new supply.
Meanwhile, according to the report, Disneyland appears close to recovery after last year's 11% decline in park attendance.
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