tg wrote this at 12:00 am on November 28, 2005:

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There was an interesting article in the Desert Sun on tourism in the Coachella Valley. With so much positive news on the residential housing market in Riverside County (and across the nation for that matter), we rarely hear any news that isn’t incredibly positive. This article wasn’t negative, but it did explain that the tourism numbers were not as good as originally forecasted for early 2005. The reason for this was because of the abnormally rainy weather we got all winter, and then the warmer-than-usual temps directly after the rain subsided. The article stated that the tourism numbers are now appearing to be much stronger and are following a positive and expected road to full recovery from 9/11.

This article got me thinking about a couple things: With all the demand for real estate in the Desert in the last couple years, I’ve noticed that commercial businesses, like restaurants, bars and even some stores haven’t seemed to grow at the same rate as construction is changing the desert landscape — or at least it appears this way to my naive eye. There are plenty of successful restaurants and bars, but I’ve also noticed that some restaurants have gone out of business, even if I thought they were doing a pretty good job and fulfilled a certain demand… Clearly a business’ failure is probably caused by a variety of reasons (bad management, bad product, saturated market, higher labor & building costs etc…), but I’ve thought that if 53 people are moving to the Valley each day (as this article states), that opportunity might be easier than normal to harness for many of the new businesses out there. There are obviously so many factors that go into creating a successful business (and more business fail than succeed), but after following the residential housing market for the last 2 years, one feels that success is everywhere, and I don’t get that same exact feeling from some of the small businesses out there. This article suggests that the 2006 season has great potential because tourist activity, of which we are so dependant, is increasing quickly. If this is the case, then I suspect that the valley should see a very positive 2006 season. I hope so!

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