This story is part of our August 2026 issue. To read the print version, click here.



The mood was upbeat at the SAFE Credit Union Convention Center on
June 3, as business owners, partners and local leaders gathered
for Visit Sacramento’s State of Tourism event to celebrate the
year’s biggest wins and look ahead to the next phase of
Sacramento’s evolution as a destination city.

Before the pandemic, the tourism economy was heavily anchored in
conventions and meetings. Visit Sacramento President and CEO Mike
Testa pointed to rising hotel tax collections and a broader, more
diversified strategy that has helped Sacramento outpace many
California cities in the years since, while building on its
established strengths.

“With the mindset of making successful things even more
successful, shouldn’t we be looking at opportunities to grow
those revenues even further?” he asked the crowd.

With close to $5 billion in visitor spending last year, those
efforts are gaining traction as long-term investments in
festivals, sports, entertainment and an expanding calendar of
events continue to drive economic growth throughout the region.

Building momentum

A number of major festivals have now secured long-term
commitments in Sacramento. The culinary festival Terra Madre
Americas will remain in the city for the next decade, paired with
the Farm-to-Fork Festival set to return in September of next
year. Also approved was a 10-year agreement to keep the
Aftershock Festival at Discovery Park, while the GoldenSky
Country Music Festival has signed on for at least three years
beginning in 2027.

Major sporting events are also expanding their footprint.
Organizers for December’s California International Marathon, a
race of 10,000 runners that begins in Folsom and ends at the
State Capitol, plan to significantly increase the usual
participation by another 6,000 runners by 2027. The X Games at
Cal Expo in late June also added to a slate of high-profile
events.

XC Los Angeles’ Tom Schaar earns a Bronze medal during his Men’s
Vertical Best Trick Finals run at the X Games in Sacramento June
27, 2026. (Photo by Steve Martarano)

Testa hinted that Visit Sacramento is exploring bringing a youth
sports facility to the region, similar to the 24-field Surf
Sports Park in Del Mar in Southern California, which brings in
millions to the local economy with its youth soccer tournaments.

Wilton Rancheria Chairman Jesus Tarango was also honored at the
event as Tourism Champion of the Year for his leadership in the
expansion of Sky River Casino and his efforts to advance a
planned 20,000-seat stadium and entertainment district in The
Railyards tied to the Sacramento Republic FC soccer club.
“Sacramento is a community that continues to grow while staying
connected to what makes it unique,” Tarango said at the event.
“And that’s happening right now, right before our eyes.”

Now, officials say the big challenge is ensuring Sacramento has
enough hotel rooms to meet the rising visitor demand.

Demand outpacing supply

“Here’s the challenge in Sacramento,” says Jeroen Gerrese,
outgoing president of the Sacramento Hotel Association and former
general manager of the Sheraton Grand Hotel, who stepped down in
July. “The hotel inventory has been the same for many years.”

Gerrese attributes the city’s recovery since the pandemic to
years of sustained effort by tourism leaders and local officials.
He notes that while downtown hotels like Hyatt House, Hyatt
Centric, and AC Hotel Sacramento have opened in recent years,
they have largely replaced lost inventory rather than making a
significant dent in the overall market.

Developer Roger Hume is renovating the former Capital National
Bank building on J Street, built in 1915, into an exclusive
boutique hotel. (Photo by Robin Douglas)

Gerrese says rising construction, labor
and material costs have made new hotel projects increasingly
difficult to finance. “The return on investment doesn’t pencil,”
he says. “That’s the main reason we haven’t seen a significant
influx of new hotels.”

“So it’s kind of the ‘if you build, they will come’ idea,” he
continues. Sacramento already has the convention center space
needed to attract larger events, Gerrese says, but lacks the
hotel inventory to support them. But additional rooms will be
critical if Sacramento hopes to compete for larger conventions
and events in the future.

That strain becomes most visible during major events like
Aftershock, as local hotels reach peak capacity and demand spills
into surrounding cities. “Downtown is the economic engine,” he
explains. “Then it starts to spread out to Arden-Arcade, Natomas,
Elk Grove and Roseville. It’s like an onion — each layer gets
busier and busier.”

But despite limited supply growth, hotel performance has
strengthened significantly, reflected in rising tax revenue. “The
hotel occupancy tax has increased by 38 percent, and I think it’s
close to $40 or $42 million a year,” he says. “That’s a
staggering number.”

Visit Sacramento officials say those revenues have helped fund
renovations to the SAFE Credit Union Performing Arts Center,
improvements in Old Sacramento and modernization of the
Sacramento Memorial Auditorium.

One hospitality project that is moving forward is Hotel Eleanor,
a 95-room adaptive reuse project at 7th and J streets that is
less about filling the gap and more about adding a little glamour
to the landscape. Developer Roger Hume says he plans to bring a
more “elevated experience” to the downtown scene by renovating
the former Capital National Bank building built in 1915. Hume
says there are two vaults in the building. One will be for a
whiskey tasting room and private dining experience and the other
vault room will be a hidden speakeasy.

“A nod to a time of style, class and sophistication that’s been
missing for so long,” he says. “My passion is taking these
historic buildings that are so beautiful, many of which could not
be recreated today, and give them a new life for generations to
come.”

Hume agrees that a major barrier to building new hotels is
construction costs. “Fortunately, the design for Hotel Eleanor
already works well for conversion. We already have elevators,
fire sprinklers, mechanical, electrical, plumbing. So, all of
these systems are already in place.”

Financial incentives from the city would help encourage new
development and expand inventory, he adds. “But I should note the
city has been very supportive of this project from the beginning,
so they do recognize there’s a need.” He’s hopeful to start
construction in August or September, with a target opening date
of December 2027.

“It’s like anything,” says Hume. “With time and effort, positive
things can be done.”

Beyond Sacramento

Just 30 minutes up Highway 50 from downtown Sacramento, Folsom is
celebrating 80 years of cityhood this year. Anchored by Folsom
Lake and Lake Natoma — home to the Sacramento State Aquatic
Center — Folsom has increasingly leaned into its identity as an
outdoor recreation hub, launching its “Paddling Capital of the
West” campaign to highlight a range of on-the-water recreation
available.

You can rent kayaks and paddleboards at Black Miners Bar and
enjoy the views and cool waters of Lake Natoma. (Photo courtesy
of Choose Folsom)

At the same time, the city is positioning itself as a year-round
base camp for visitors exploring the surrounding Gold Country
region. “Most of our itineraries include attractions and
experiences you can have within 45 minutes of Folsom and of
course, Folsom itself,” says Jody Franklin, tourism and travel
trade director for Choose Folsom.

The city of more than 95,000 residents boasts more than 60 miles
of trails, including the 2.5-mile Johnny Cash Trail honoring the
legendary musician and his 1968 concert at Folsom Prison, marked
by a 7-foot-tall black bronze guitar pick art installation at a
trailhead.

Mounted officers travel the Johnny Cash Trail in Folsom, a
2.5-mile route honoring the musician and his famous 1968 concert
at Folsom Prison.

Its events calendar runs the gamut from arts and culture like the
NorCal Short Film Festival in February, to sports and athletic
competitions like the American River 50 Mile Endurance Run in
April and the Folsom Pro Rodeo in July — the city’s largest
annual event, which drew 22,000 attendees last year.

Visitors coming from downtown can also catch the SacRT Gold Line
light rail at the Sacramento Valley Station at 4th and J streets
and ride all the way into Folsom’s Historic District to explore
Sutter Street or catch the farmers market every Saturday.

The Sacramento area is home to a wide network of bicycle trails
that draw cyclists from around the state.

With nine hotels, including the recently opened AC Hotel
Sacramento Folsom, the room inventory fills up quickly during
major events like the California International Marathon, a
significant economic driver for the city.

To the southwest, Clarksburg showcases another side of the
region’s tourist economy — one rooted in agriculture, wine and
the farm-to-fork identity that defines much of the Sacramento
Valley.

Bogle Winery, established in 1968, is the oldest winery in
Clarksburg. (Photo courtesy of Bogle Family Vineyards)

Just 20 minutes from downtown Sacramento, Clarksburg is a small,
unincorporated farming town and an American Viticultural Area.
“That means we are designated by the federal government as a
specific wine-producing region,” says Phil Ogilvie, owner and CEO
of Silt Wine Company, who unofficially supports visitor outreach
and marketing for Clarksburg.

The Old Sugar Mill houses 14 wineries, but visitors can travel to
a handful of multigenerational estate wineries, including
Heringer Estates, Bogle Family Vineyards and Grand Island
Vineyards. “The Old Sugar Mill is the welcome mat for
Clarksburg,” says Ogilvie. “They’re doing great things.”

The Old Sugar Mill in Clarksburg houses 14 wineries, including
Carvalho Family Winery, Elevation Ten, Draconis and others.
(Photo courtesy of Enjoy Clarksburg)

“Every wine region is competing to attract visitors, but we’ve
never believed success comes from trying to be like somewhere
else,” said Jody Bogle, a third-generation winegrower at Bogle
Family Vineyards. “Our focus has always been on celebrating what
makes Clarksburg special. From our acoustic country music series
and Earth Day vineyard dinners to holiday celebrations and local
food fairs, every experience is designed to showcase the
character of our farming community.”

Ogilvie, whose winery recently won California’s Golden Bear
Winery of the Year at the 2026 California State Fair Commercial
Wine Competition, notes the region has been growing wine grapes
and producing wine since the late 1960s. “We farm about 1,500
acres,” he adds. But the town’s agricultural roots run deep. A
fourth-generation farmer, he recalls moving rain pipes through
fields of tomatoes and sugar beets growing up. “When I was a kid,
wine grapes were about one-third or a quarter of everything we
grew.”

Phil Ogilvie, owner and CEO of Silt Wine Company, is the official
tourism promoter of Clarksburg. (Photo courtesy of Silt Wine
Company)

Strategic partnerships with regional events have helped boost
Clarksburg’s profile. Ironman California, which passes directly
through the town along Babel Slough Road, caught local wineries
off guard the first year when road closures hindered access to
their tasting rooms. Now the race has become a draw, with
Ogilvie’s winery serving as a designated watch party for the
event. “People come from all over the country,” he says. “They
watch from our grounds and stand up next to the levee, and we
bring out a band. It’s just a fun experience. Last year we had
about 700 visitors throughout the day.”

Silt Winery, one of the newer wineries in Clarksburg, was named
Golden State Winery of the Year in 2026. (Photo courtesy of Silt
Wine Company)

They also participate in the Farm-to-Fork Festival, Tower Bridge
Dinner and Legends of Wine at the Capitol, an event that kicks
off the city’s Farm-to-Fork Month celebrations in September.

That agricultural heritage remains central to Clarksburg’s
identity and to the experience they hope visitors will take home.
“I like to say that Clarksburg is where Napa was 50 years ago,”
says Ogilvie. “So, you can be enjoying a wine tasting, and in
walks the owner, the winemaker and the farmer, and you’re seeing
a tractor drive by. We really value that authentic experience.”

How tourism benefits local residents

“I always say that tourism isn’t about the tourist; it’s about
making things better for the people who work and live here,” says
Testa.

Silt Wine Company in Clarksburg offers space for events amid the
vineyards of the Sacramento region’s historic wine country.

More than 15 million people visit Sacramento each year, he
explains, and those tourism dollars help keep local businesses
afloat and help generate critical employment.

“In the longer term, tourism is the catalyst that drives growth
in a city,” Testa says. “When Sacramento becomes known nationally
for live events, sports, and a strong dining scene, it begins to
attract further investment and evolution that extends beyond
tourism itself.”

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