By Jorge Casuso

April 16, 2026 -- The Promenade's new Entertainment Zone has boosted business at eating and drinking establishments during special events but has failed to drive weekend foot traffic to the struggling walk street, according to a report to the City Council this week.

Launched last June, the program -- which has operated from 11 a.m. to 10 p.m. Friday through Sunday and during special events -- allows visitors to buy alcoholic drinks on the Promenade and consume them along the three-block walk street.

Eight of the 12 Promenade businesses with alcohol licenses have participated in the program, which included 22 special events during its first six months "activated" by private promoters and Downtown Santa Monica, Inc (DTSM).

Some of those events saw a significant increase in attendance over previous years, with Oktoberfest more than doubling its usual attendance and attendance tripling during last year's World Series Watch Party.

But while some Entertainment Zone (EZ) events have drawn larger than usual crowds, the much-publicized zone has failed to drive more foot traffic to the Promenade during its regular operating hours on weekends.

In fact, the Promenade saw foot traffic decrease compared to weekends during non-event periods in 2024, according to the report.

"The reduction in non-event attendance on the Promenade contrasts with the broader downtown area, which saw similar or slightly elevated foot traffic," the report said.

Over the first six months, operating the zone has cost the City $260,000, with most of the costs, $35,000, related to labor and security during major weekend events and expanded ambassador services, approximately $36,000.

Another $45,000 has been spent on signs to advertise rules and define the zone's boundaries, while wristbands provided to attendees with an alcoholic drink cost the City 7 cents each, "a relatively minor cost."

Surveys conducted by the City have found an "overwhelming majority" of bars and restaurants said the events had a positive impact on business, "while just under half of retailers found it to be positive."

About one-third of all businesses said events had a neutral impact and about 15 percent saw a negative impact.

"Negative impacts were often tied to visitors being unaware of EZ rules such as not bringing alcoholic beverages into other businesses," the report said.

Meanwhile, a survey of residents found that one-third of respondents said the zone encouraged them to attend an event, while 40 percent said they planned to come back for another event.

According to the report, the "successful rollout" of the zone has brought renewed interest from Promenade property owners and businesses in expanding its hours and days of operations.

The Santa Monica Police Department -- which had reported the zone has had little impact on crime -- "has not objected" to the expansion but "prefers that the boundaries remain limited to the Promenade for the time being."

The Entertainment Zone, the report said, has "created a platform for future activations," with upcoming events including Cinco de Mayo and watch parties for the World Cup, Olympics and other popular sporting events.