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Temecula Valley Wine Country Economic Impact Reaches Nearly $100 Million

Thursday, November 14, 2019 5:00 PM

Visit Temecula Valley (VTV) today announced results of their 2018 economic impact study of Temecula Valley Southern California Wine Country. Led by Dean Runyan Associates, a research services firm emphasizing travel and economic development, with input from the Riverside County Agricultural Commissioner’s Office, the study tracks data pertaining to case production, revenue, employment and visitation gathered from 38 winery members of the Temecula Valley Winegrowers Association (TVWA). The Temecula Valley American Viticultural Area (AVA) has an annual economic impact of $99.6 million on the regional economy.

A sampling of 38 wineries in the Temecula Valley AVA showed that wineries remain small to mid-sized with only eight respondents producing in excess of 50,000 cases annually. Of the wineries who responded, 11.8% indicated annual revenue in excess of $15 million. The region supported more than 1.5 million winery visits in 2018, with 18% of respondents hosting 100,000 or more visitors last year.

Riverside Agriculture reported 2,190 harvested acres in 2018, yielding 8,500 tons and $14 million in grape sales. This represents a slight decrease in harvested acres and grape yields over last year, but about a 6.1%  increase in grape sales, suggesting that Temecula Valley grapes are commanding higher prices. The majority of growers farming Temecula Valley vineyards sell their wine grapes to Temecula Valley wineries. Only 18% of Temecula Valley wineries who responded are currently in distribution outside of the winery.

Employment figures are strong in the region, with annual wages totaling approximately $10.1 million, up 19.9% from the previous year.

“Temecula Valley Southern California Wine Country is on a very exciting trajectory that has been gaining momentum over the past few years,” said Phil Baily, TVWA Board President. “Thanks to our winemakers’ and growers’ passion and deep commitment to quality, Temecula Valley is finally getting the recognition it deserves as a premium grape growing and winemaking region. It’s no surprise Wine Enthusiast Magazine called us one of the Top 10 Wine Travel Destinations in the world this year. We’re looking forward to seeing what next year holds.”

Visitation is predominantly categorized as “paid wine tastings” and “other visits,” which includes wine club tastings and events. The region also supported nearly 500,000 restaurant patrons in Wine Country in 2018, and 111,264 overnight stays. Dining and lodging in wine country are unique features to the Temecula Valley, and key pillars of the region’s tourism.

“We are always wowed when the latest economic impact numbers are revealed for Temecula Valley Southern California Wine Country, and 2018 was no exception,” said Kimberly Adams, VTV President and CEO. “Wine tourism to the region remains strong, thanks to a winning combination of quality wines, lodging among the vines, award-winning restaurants, great shopping, spas and outdoor adventures that makes this the perfect wine destination, not just for locals but for visitors from all over the world.”

The full report, which can be viewed HERE [NEED LINK], will guide and support comprehensive marketing and tourism planning efforts by Visit Temecula Valley and the Temecula Valley Winegrowers Association.

ABOUT TEMECULA VALLEY WINE COUNTRY

Located within a 60-minute drive from San Diego, Orange County, and Palm Springs, and within 90 minutes of Los Angeles, Temecula Valley is widely recognized as Temecula Valley Southern California Wine Country. The popular wine destination is southern California’s largest wine producing region by volume. 

Both Visit Temecula Valley (VTV) and the Temecula Valley Winegrowers Association (TVWA) are 501 (c) 6 nonprofit regional organizations. Primary responsibilities of VTV (VisitTemeculaValley.com) include promoting Temecula Valley as a year-round travel destination and advancing the Temecula Valley visitor economy. The TVWA (TemeculaWines.org) is dedicated to promoting the making and growing of quality wine and wine grapes in the Temecula Valley A.V.A. (American Viticulture Area).