San Francisco, a city known for its iconic landmarks and cultural vibrancy, is preparing for a strong rebound in tourism in 2025. After a challenging 2024 marked by sluggish visitor numbers, reduced convention activity, and the lingering impacts of hotel labor strikes, city leaders and industry insiders are optimistic about the year ahead.
The previous year presented steep challenges for San Francisco’s hospitality sector. Visitor volumes stagnated, with the city grappling with a lack of large-scale events and reduced international tourism. A particularly notable absence was the Asia-Pacific Economic Cooperation (APEC) summit, which last drew global attention to the city in 2023. Additionally, hotel labor strikes that spanned three months disrupted operations at over a quarter of San Francisco’s hotel inventory, further compounding the industry’s woes.
San Francisco’s hotel performance metrics painted a grim picture. Occupancy rates remained flat, and average daily rates (ADR) dropped by 3.8%, with revenue per available room (RevPAR) declining by 3.7%, according to CoStar data. Once commanding some of the highest room rates in the U.S., San Francisco’s ADR now hovers around $220, significantly below its 2019 average of $247.
Despite these challenges, San Francisco is taking decisive steps to rejuvenate its tourism industry. Anna Marie Presutti, CEO of the San Francisco Travel Association, expressed cautious optimism. “We’ve endured a lot, but we’re stronger for it,” she said.
The city has made progress in addressing public safety concerns, a factor that had tarnished its image in recent years. By May 2024, property crime had dropped by 32%, while violent crime saw a 14% reduction. Investments in public safety, including hiring 200 additional police officers and implementing advanced surveillance technologies, have bolstered confidence among residents and visitors alike.
Homelessness, another critical issue, has seen improvements. Early 2024 data revealed the lowest level of street homelessness in a decade, with a 13% decrease in the number of people living on the streets since 2022. These achievements are attributed to expanded shelter capacity and housing programs.
San Francisco’s calendar for 2025 is packed with high-profile events designed to draw visitors and reshape perceptions of the city. Major sporting events, including the NBA All-Star Game, NCAA March Madness basketball games, and the Laver Cup tennis tournament, are expected to capture global attention.
Convention bookings, a critical driver of tourism, are also on the rise. The Moscone Center, San Francisco’s premier convention complex, is set to host 30 events this year, up from 25 in 2024. Notably, Microsoft has booked its Ignite convention for November 2025, a significant win given the short lead time of just one year.
San Francisco Travel has also launched innovative initiatives to enhance the visitor experience. Designated entertainment zones now allow outdoor alcohol service, and expanded street festivals and night markets aim to enliven neighborhoods. Additionally, the city’s marketing strategy will adopt unconventional tactics, showcasing both classic attractions and lesser-known gems.
Industry projections for 2025 reflect growing optimism. Visitor numbers are expected to rise from 23.2 million in 2024 to 23.9 million this year, with visitor spending forecasted to jump from $9.24 billion to $10 billion. Hotel occupancy rates are predicted to climb to 64.1%, accompanied by a slight increase in ADR to $232.99.
San Francisco’s efforts to revitalize its tourism industry highlight the city’s resilience and adaptability. With strategic investments in public safety, a packed event calendar, and innovative marketing, the city is poised to reclaim its position as one of the nation’s top destinations. For visitors, 2025 offers the perfect opportunity to rediscover the magic of San Franciscoa city as dynamic and iconic as ever.
