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blends vibrant city life with a preserved historic core. Visitors can explore a variety of attractions, from the art-filled streets of the Downtown Santa Ana Artwalk to the Bowers Museum's global collections and the Discovery Cube's interactive science exhibits2. The city's distinctive neighborhoods offer everything from historic architecture to innovative food markets, and the popular Frida Cinema and Yost Theatre. Tourism is a cornerstone of Santa Ana's economy, driving substantial revenue and job creation for the community. In 2023, visitor spending alone contributed an impressive $414.7 million to the local economy3, an increase of over 9% compared to the previous year. This spending supports local businesses and fuels sectors like food service, accommodations, retail, arts, and transportation. Food service alone saw $109 million from visitor spending, with accommodations adding another $107 million, and arts, entertainment, and recreation generating $81.5 million. These visitor expenditures provide essential funding for city services like public safety, parks, and neighborhood improvements, while also alleviating the tax burden for residents—without tourism-related tax revenue, each household would pay an additional $195 annually in local taxes. Tourism's impact on employment is equally significant, supporting nearly 3,000 jobs in Santa Ana and contributing around $137 million in wages to the local workforce. With continued growth in overnight visits and local attractions, tourism remains a vital industry that helps sustain the community's economic well-being and enhance residents' quality of life. 1. How a ban on STR could spur new hotel development and impact demand and room rates Orange County's STR occupancy was 72% on a year-to-date basis and RevPAR was $151 and its hotels also maintain a high 77% occupancy rate and an ADR of $196.59, which underscores the region's strong demand. High occupancy figures are seen in all months - with only January falling below 70%. Orange County's hotel room demand showed a 5% year-over-year growth, highlighting its popularity within the state. Based on AirDna data, Santa Ana's appears to have or had up to approximately 2,180 STR listings (approximately 79% of which are Airbnb listings), with a current occupancy rate of 53%. This is approximately 73% for Airbnb rentals, for which there appear to be approximately 1,1004 active STR listings.5 STRs generate substantial revenue for hosts (estimated at $43,000 annually per host for Airbnb rentals)6 with an Average Daily Rate (ADR) of $237.37. z https://www.visitcaIifornia.com/places-to-visit/santa-ana/ 3 httos://www.travelsantaana.com/about-travel-santa-ana/economic-impact-of- tourism/#:-:text=In%202023%2C%20traveler%20exi)enditures%20from,in%20locaI%20and%20state%20tax es. 4 httr)s://www.santa-ana.or(i/short-term-rentals-ban/ 5 We note that even if the exact amounts of STRs in the City are slightly higher or lower than the approximate values shown here, the conclusions of this report remain consistent regarding the impact of the STR ban on spurring hotel demand and forcing individuals to forced to travel further to find available or affordable hotel rooms. 6 https://airbtics.com/annual-airbnb-revenue-in-santa-ana-california-usa/ htti3s://www.airdna.co/vacation-rental-data/apn/us/california/santa-ana/overview 2/s