Tourism Business Improvement District February 6, 2007 Agenda Item 9.01.

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Presentation transcript:

Tourism Business Improvement District February 6, 2007 Agenda Item 9.01

Public Hearing: Establish a Tourism Business Improvement District pursuant to the Parking and Business Improvement Area Law of Establish a Tourism Business Improvement District pursuant to the Parking and Business Improvement Area Law of 1989.

Tourism Business Improvement District What is it? What is it? An assessment on hotel room nights within a defined boundary or district An assessment on hotel room nights within a defined boundary or district Boundaries – Incorporated area of the City of Stockton Boundaries – Incorporated area of the City of Stockton Recommended assessment amount – Recommended assessment amount – 2% of the hotel room rate per night Who Pays? Who Pays? Hotel/Motel Business owner Hotel/Motel Business owner Can be passed on to the hotel guests Can be passed on to the hotel guests

Tourism Business Improvement District How will it be remitted to the City? How will it be remitted to the City? Remit to the Administrative Services Department with the payment of the Transient Occupancy Tax Remit to the Administrative Services Department with the payment of the Transient Occupancy Tax City will retain a 5% administrative fee City will retain a 5% administrative fee

Tourism Business Improvement District Recommendation from City of Stockton staff is a 50/50 split between the Stockton Conference and Visitors Bureau (Greater Stockton Chamber of Commerce) and the City of Stockton Sports Commission. Recommendation from City of Stockton staff is a 50/50 split between the Stockton Conference and Visitors Bureau (Greater Stockton Chamber of Commerce) and the City of Stockton Sports Commission.

Public Hearing: Presentation by representatives from the Greater Stockton Chamber of Commerce and the City of Stockton Sports Commission Presentation by representatives from the Greater Stockton Chamber of Commerce and the City of Stockton Sports Commission

Greater Stockton Chamber of Commerce Stockton Conference and Visitors Bureau Doug Wilhoit, CEO Doug Wilhoit, CEO Wes Rhea, Conference and Visitors Bureau Wes Rhea, Conference and Visitors Bureau

Stockton Conference and Visitors Bureau California Tourism – $88.1 billion direct travel spending and $5.3 billion state/local tax revenue California Tourism – $88.1 billion direct travel spending and $5.3 billion state/local tax revenue Direct correlation between promotional spending and market share Direct correlation between promotional spending and market share

Stockton Conference and Visitors Bureau Why a Business Improvement District? The increased revenue would allow the Stockton Conference and Visitors Bureau (SCVB) to increase staffing to a level competitive with conference and visitor bureaus in surrounding markets thus allowing the Stockton Conference and Visitors Bureau to increase its visibility and focus on the targeted market segments. The increased revenue would allow the Stockton Conference and Visitors Bureau (SCVB) to increase staffing to a level competitive with conference and visitor bureaus in surrounding markets thus allowing the Stockton Conference and Visitors Bureau to increase its visibility and focus on the targeted market segments. To promote and sell Stockton as a tour, meeting, conference, amateur and professional sports, leisure and business travel destination. This will in turn increase hotel occupancy rates, as well as positively impact the local economy. To promote and sell Stockton as a tour, meeting, conference, amateur and professional sports, leisure and business travel destination. This will in turn increase hotel occupancy rates, as well as positively impact the local economy.

Stockton Conference and Visitors Bureau (Continued) Why a Business Improvement District? Furthermore, in order to not be dependent on long-term city funding, Stockton Conference and Visitors Bureau must be self sufficient in tourism promotion especially when preparing for future bureau growth. Furthermore, in order to not be dependent on long-term city funding, Stockton Conference and Visitors Bureau must be self sufficient in tourism promotion especially when preparing for future bureau growth. Finally, Stockton Convention and Visitors Bureau needs to continue to grow the public/private partnership between the City, Chambers, and Hotels. Finally, Stockton Convention and Visitors Bureau needs to continue to grow the public/private partnership between the City, Chambers, and Hotels.

Stockton Conference and Visitors Bureau Goals Increase marketing efforts that promote and brand the greater Stockton area as a tour, meeting, conference, amateur and professional sports, and leisure &business destination with the primary goal of increasing weekday and weekend overnight stays. Increase marketing efforts that promote and brand the greater Stockton area as a tour, meeting, conference, amateur and professional sports, and leisure &business destination with the primary goal of increasing weekday and weekend overnight stays. Increase occupancy rates by 3%-5%, by turning day trips into overnight stays, by increasing the volume of business and leisure travel, by increasing the bus tour market and by increasing the number of meetings and conferences held in Stockton. Increase occupancy rates by 3%-5%, by turning day trips into overnight stays, by increasing the volume of business and leisure travel, by increasing the bus tour market and by increasing the number of meetings and conferences held in Stockton. Bring the Stockton Conference and Visitors Bureau to a level of staffing which is competitive with the surrounding market and at a strength which is able to implement the above goals. Bring the Stockton Conference and Visitors Bureau to a level of staffing which is competitive with the surrounding market and at a strength which is able to implement the above goals.

Stockton Conference and Visitors Bureau A look at our market competition staffing and budget levels: Stockton Conference and Visitors Bureau: Stockton Conference and Visitors Bureau: Staff: 1; Budget: $112,000; Source: City Lodi Conference and Visitors Bureau: Lodi Conference and Visitors Bureau: Staff: 3; Budget: $297,500; Source: Business Improvement District/City Manteca Convention and Visitors Bureau: Manteca Convention and Visitors Bureau: Staff: 3; Budget: $250,000; Source: City/Events/Member Dues Modesto Convention and Visitors Bureau: Modesto Convention and Visitors Bureau: Staff: 4; Budget: $290,000; Source: City

Stockton Conference and Visitors Bureau A look at our market competition staffing and budget levels (continued): Fresno City & County Convention & Visitors Bureau: Fresno City & County Convention & Visitors Bureau: Staff: 9; Budget: $740,000 Tri-Valley Convention and Visitors Bureau (Pleasanton, Livermore, Dublin, San Ramon and Danville): Tri-Valley Convention and Visitors Bureau (Pleasanton, Livermore, Dublin, San Ramon and Danville): Staff: 9; Budget: $1+ million; Source: Business Improvement District/City/Member Dues Sacramento Convention and Visitors Bureau: Sacramento Convention and Visitors Bureau: Staff: 35+; Budget: $6.48 million; Source: Business Improvement District/City/County/Member Dues

Stockton Conference and Visitors Bureau The Diversity of a Conference and Visitors Bureau Properties are looking for a variety of business: Properties are looking for a variety of business: Business Business Leisure Leisure Weekday Weekday Weekend Weekend Seasonal Seasonal Long-term (more than 7day) Long-term (more than 7day) Meetings/Conferences Meetings/Conferences Group Tours Group Tours Tourism Trends Tourism Trends AgriTourism, EcoTourism, Cultural/Heritage Tourism, Volunteer Tourism, Dark Tourism, Sports Tourism, Wine Tourism AgriTourism, EcoTourism, Cultural/Heritage Tourism, Volunteer Tourism, Dark Tourism, Sports Tourism, Wine Tourism

Stockton Conference and Visitors Bureau Strategies Increase print marketing efforts to reach out to the Leisure/Business Traveler, Meeting and Conference Planners and Tour Operators Increase print marketing efforts to reach out to the Leisure/Business Traveler, Meeting and Conference Planners and Tour Operators Develop sales strategies with new staff to target opportunities for new meetings, conferences and tours for Stockton. Develop sales strategies with new staff to target opportunities for new meetings, conferences and tours for Stockton. Increase participation in travel/trade shows and membership organizations related to meeting the Stockton Conference and Visitors Bureau goals. Increase participation in travel/trade shows and membership organizations related to meeting the Stockton Conference and Visitors Bureau goals. Increase print advertising to target guests more likely to stay more than one day. Increase print advertising to target guests more likely to stay more than one day. Develop incentives for Meeting and Conference planners. Develop incentives for Meeting and Conference planners.

Stockton Conference and Visitors Bureau Strategies Develop positive Public Relations campaign and relationships with travel magazines and writers with the goal of more free press about Stockton. Develop positive Public Relations campaign and relationships with travel magazines and writers with the goal of more free press about Stockton. Develop other available multi-media opportunities, i.e. internet, television, in-room marketing videos, billboards, etc. Develop other available multi-media opportunities, i.e. internet, television, in-room marketing videos, billboards, etc. Promote and Sponsor events with the potential of bringing in overnight guests. Promote and Sponsor events with the potential of bringing in overnight guests. Continue to develop and improve Stockton Conference and Visitors Bureau sales tools: and Official Stockton Visitors Guide. Continue to develop and improve Stockton Conference and Visitors Bureau sales tools: and Official Stockton Visitors Guide.

City of Stockton Sports Commission Don Miller, Director Don Miller, Director

City of Stockton Sports Commission History: History: 9 years old 9 years old List of Sporting Events has grown each year. List of Sporting Events has grown each year. Revenue from Hotel Transient Occupancy Tax has grown each year. Revenue from Hotel Transient Occupancy Tax has grown each year.

City of Stockton Sports Commission Goal: Goal: Attract first-class Sporting Events that fill hotel rooms. Attract first-class Sporting Events that fill hotel rooms. Increase the economic impact of Sporting Events. Increase the economic impact of Sporting Events. Direct Economic Impact of Sports Commission events was over $13 Million! Direct Economic Impact of Sports Commission events was over $13 Million!

City of Stockton Sports Commission The Sports Commission presently raises $100,000 annually through local sponsorships. The Sports Commission presently raises $100,000 annually through local sponsorships. 20% used for operating expenses 20% used for operating expenses 80% used for event bid fee expenses 80% used for event bid fee expenses Sports Commission will continue to sell sponsorships. Sports Commission will continue to sell sponsorships.

City of Stockton Sports Commission Fees associated with Events: Fees associated with Events: facility rental costs facility rental costs police services police services insurance insurance permits permits hotel rooms for staff hotel rooms for staff staff and volunteer meals staff and volunteer meals meeting room rentals meeting room rentals event banquets event banquets transportation transportation staging and tenting costs staging and tenting costs security security event marketing event marketing

City of Stockton Sports Commission Examples of confirmed Sporting Event Expenses/Costs: Examples of confirmed Sporting Event Expenses/Costs: BassMasters Tournament - $60,000 BassMasters Tournament - $60,000 CIF High School Section Wrestling - $30,000 CIF High School Section Wrestling - $30,000 ASA Girl's Fastpitch National Softball - $25,000 ASA Girl's Fastpitch National Softball - $25,000 Tour of California - $6,000 Tour of California - $6,000 Stockton Youth Soccer Events - $5,000 Stockton Youth Soccer Events - $5,000

City of Stockton Sports Commission Tourism Business Improvement District Funds: Tourism Business Improvement District Funds: To be used to attract first-class Sporting Events to the area. To be used to attract first-class Sporting Events to the area. Continue to build Stockton as a Sports Destination! Continue to build Stockton as a Sports Destination!

City of Stockton Sports Commission Examples of future event costs: Examples of future event costs: Women's Future Golf Tour - $30,000 Women's Future Golf Tour - $30,000 Police and Fire Games - $50,000 Police and Fire Games - $50,000 American Junior Golf Tour - $20,000 American Junior Golf Tour - $20,000 Additional National Softball Tournaments - $25,000 - $40,000 Additional National Softball Tournaments - $25,000 - $40,000 USA Olympic Sporting Events - $20,000 - $50,000 USA Olympic Sporting Events - $20,000 - $50,000 Amateur Athletic Union (AAU) events - $10,000 - $20,000 Amateur Athletic Union (AAU) events - $10,000 - $20,000

Recommendation Adopt an ordinance establishing the Stockton Tourism Business Improvement District pursuant to the Parking and Business Improvement Area Law of 1989 (Streets and Highways Code sections 36,500, et seq.); and, Adopt an ordinance establishing the Stockton Tourism Business Improvement District pursuant to the Parking and Business Improvement Area Law of 1989 (Streets and Highways Code sections 36,500, et seq.); and, Adopt a resolution to levy an assessment on lodging businesses within the Stockton Tourism Business Improvement District. Adopt a resolution to levy an assessment on lodging businesses within the Stockton Tourism Business Improvement District.

Questions?