San Luis Obispo brought in a record $12.28 million in transient occupancy tax revenue during the 2025-26 fiscal year, according to information presented at an October City Council meeting.
Transient occupancy tax, also known as TOT, is paid by visitors staying in local hotels, motels and other short-term lodging.
Since 2008, San Luis Obispo’s Tourism Business Improvement District, or TBID, has worked to attract visitors to the city through marketing and promotional efforts.
“All the transient occupancy tax, or TOT, goes directly into the general fund for the city,” said Jacqui Clark-Charlesworth, San Luis Obispo’s tourism and community promotions manager.
Clark-Charlesworth said the money helps pay for services and amenities used by both residents and visitors, including open space access, infrastructure improvements and public safety.
“All of the things that both residents need and utilize and that visitors love to have access to when they’re here,” she said.
With the exception of the COVID-19 pandemic, Clark-Charlesworth said transient occupancy tax revenue has generally increased over the years. It is now the city’s third-largest source of general fund revenue, behind property tax and sales tax, she said.
Clark-Charlesworth attributes some of that growth to the work behind Visit SLO, the city’s public-facing tourism brand managed by the TBID.
Dante Specchierla, manager of the Petit Soleil hotel, said those marketing efforts appear to be reaching travelers both within California and beyond.
“The marketing for the destination itself I think is definitely resonating with clients that are visiting from San Francisco, Los Angeles, our drive markets, and then across the nation,” Specchierla said.
Specchierla said the TBID’s work to draw visitors to San Luis Obispo during weekdays has been particularly important for his hotel.
“We are very, very happy to be as successful as we are right now,” he said.
But the economic impact of visitors extends beyond overnight accommodations.
San Luis Obispo Chamber of Commerce Interim CEO Ermina Karim said visitors staying in the city also spend money at local businesses and attractions.
“Hotels are just one stop on the way,” Karim said. “They’re going to not just stay the night. They’re going to go to a winery, they’re going to shop downtown, they’re going to go to our children’s museum, they’re going to hike our hills, and that’s good for all of us.”
Following the record $12.28 million in transient occupancy tax revenue reported for the 2025-26 fiscal year, the San Luis Obispo City Council unanimously approved the TBID to continue for another year.
