Economic Development Dashboard Update

As we navigate a dynamic economic landscape, the City of Napa remains committed to transparency and informed decision-making. Our Economic Development Dashboard, which was introduced in 2022 as a way to track Covid-19 recovery efforts, has evolved into a comprehensive tool that paints a picture of our City's economic health and long-term trends.

This Dashboard is updated quarterly and provides insight into areas such as workforce trends, visitor patterns and business health. While certain data isn't accessible within the quarter and is updated in a later dashboard- reflecting the complex nature of economic data collection - we aim to present the most current information available to keep the community accurately informed. With the addition of tools like Placer AI, we will be able to provide additional insight on economic trends more than ever.

The dashboard was designed with all Napa residents in mind, not just economists. Our goal is to distill complex economic data into clear and digestible insights for residents to understand the local economic landscape and trends that impact their lives. This data is a great way for community members to "gut check" their perceptions in areas like hotel occupancy, housing costs or employment, with concrete data.

While an important goal of the dashboard, it isn't just used to keep the community informed - it also provides insights that Napa City Council uses to monitor long term trends and implement effective policy. Every quarter, Dr. Robert Eyler, President of Economic Forensics and Analytics Inc., who maintains Napa's Economic Development Dashboard, presents to the City Council on macroeconomic trends that could impact Napa's future, based on the dashboard data.

At the September 17, 2024 Council meeting, Dr. Eyler highlighted key trends in the tourism and hospitality sector, commercial real estate and more. Notably, the tourism sector is outperforming its 2024 forecast, a positive sign for Napa's visitor-driven economy. In the hospitality sector, hotel occupancy rates have remained steady, while Average Daily Rates (ADR) have increased, indicating a slight recovery from the dip that began in late 2022. Despite this encouraging outlook, a tourism revival in San Francisco could pose a competitive threat to Napa's tourism market.

When assessing consumer spending, taxable sales have risen slightly (+1.2%) in the City of Napa, while taxable sales have decreased in Napa County (-1%) and California (-0.5%). Within the City of Napa, there has been an increase in consumer spending in downtown districts, while spending patterns elsewhere have been relatively level. In particular, the Oxbow district saw a 31.2% increase in taxable sales from the first quarter of 2023 to the first quarter of 2024. These patterns are likely caused by a combination of changes in consumer prices and expanded business offerings.

Dr. Eyler highlighted that, overall, the macroeconomic trends are positive, though significant national and local elections in 2024 and 2026 could affect economic growth in the succeeding years and will be closely monitored. In particular, urban commercial real estate will be a key indicator of Napa's downtown vitality and will be critical to monitor in the coming years. Additionally, the wine industry, which has been a crucial part of Napa's identity and economy, has shown mixed economic signals. The Economic Development team is responding to this by focusing on ways to develop an industrial mix to catalyze economic growth across various sectors through the Napa Makes initiative, safeguarding against dips in the wine economy. In addition, the City is preparing for unexpected shifts in consumer and business behavior as a result of the upcoming elections on November 5.

The Economic Development Dashboard is a vital resource for all Napa community members to gain understanding into Napa's economic performance and the factors driving its programs and policies. We encourage all residents to explore the dashboard and engage in building Napa's economic future. Get the full scoop on the latest insights by watching Dr. Eyler's September 17 City Council update on the dashboard.