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District Member Town Hall Meeting March 20, 2019

Agenda Welcome and Introductions District Background Finance & Budget Application and Approval Q&A

District Background

District Background The Dallas Tourism Public Improvement District is modeled after similar successful initiatives around the country, but the first in Texas. It is designed to significantly increase the funding available to market and provide incentives to enhance Dallas’ performance as a convention and tourism destination.

District Background The District is funded through hotel properties in Dallas city limits with 100 or more rooms by a 2% assessment on occupied rooms. The District is managed by a ten (10) member board of directors, made up of participating hoteliers. 3 from properties with 1000+ rooms 3 from properties with 301-999 rooms 4 from properties with 100-300 rooms

District Background Collections for the DTPID began in August 2012 Initially established for 5 years. It was renewed for an additional 13 years (through 10/31/2029). Budgets are approved annually by the city. Funds are administered by VisitDallas through a contract with the DTPID Board of Directors.

District Service Plan Incentives & Sales Efforts 42.5% Marketing (Promotion/Advertising) 35.0% Site Visits & Familiarization Tours 10.0% Event Funding Application Pool 07.5% Operations/Research/Administration 05.0% Total Expenses 100.00%

District Service Plan Notes 10-to-1 Return on Investment 5% assumed annual growth 1% assumed reserve fund investments growth All assessments stay with the District. Any balances remain in their budget category. Incentive funds are committed to future scheduled events. These funds will not be expended until the event occurs.

Finance

VISITDALLAS | COPYRIGHT 2018 Budget Distribution VISITDALLAS | COPYRIGHT 2018 VISITDALLAS | COPYRIGHT 2017

VISITDALLAS | COPYRIGHT 2018 FY19 Budget & Plans Sales Incentive, Efforts & Events 5675+ Promotions/Incentives-Direct 4,359,021 5670 Promotional Items/Gifts 230,387 5370 Rent-Equipment/Booth 226,896 5572 Sponsorship-Industry/Assoc 1,223,493 $ 6,039,796 Marketing Efforts 5627 Advertising-Consumer 2,840,563 5628 Advertising-Trade 757,483 5300 Advertising Contracts 1,082,119 5301 PR Contracts 436,338 5674 Creative/Production 541,060 $ 5,657,564 Site Visits & Familiarization Tours 5505 Hotel-Non-Staff 153,591 5506 Meals-Non-Staff 460,773 5507 Airfare-Non-Staff 115,193 5508 Transportation-Non-Staff 5509 Reception/Entertainment 422,376 5377 Rent-Facilities $ 1,305,524 Application Pools 5672 Event Funding Application Program 1,309,015 Individual Hotel Application Program 872,677 $ 2,181,692 Operations/Research/Administration 5319 Insurance-Professional Liability 17,454 5310 Legal & Audit 69814 5000 Labor/Administration 174,535 5629 Research 349,071 $ 610,874 KBHCCD & Association Support/Other 5900 Operating Services – KBHCCD 500,000 5710 Professional Services – Assoc. 994,852 5998 Reserves/Unallotted 163,234 $ 1,658,086 $ 17,453,536 VISITDALLAS | COPYRIGHT 2018 VISITDALLAS | COPYRIGHT 2017

VISITDALLAS | COPYRIGHT 2019 Performance VISITDALLAS | COPYRIGHT 2019

VISITDALLAS | COPYRIGHT 2019 Collections VISITDALLAS | COPYRIGHT 2019

VISITDALLAS | COPYRIGHT 2019

VISITDALLAS | COPYRIGHT 2019

Individual Hotel Application Program

Program Overview The Individual Hotel Incentive Program is designed to provide DTPID participating hotels the opportunity to apply for funding to attract additional in-house meetings to their properties. As with all other DTPID expenditures, the program is subject to 10-to-1 return on investment (hotel room night revenue generated).

Program Overview Program limited to 5% of DTPID budget annually. District properties limited to $100,000 annually. Limited to single property events. Limited to events using 10% of property inventory at peak. Events receiving other DTPID funds are ineligible.

Program Process Identify target meetings/groups (not currently booked): New - incentive to attract new business Retention - incentive to retain or grow existing business Forecast potential room lodging revenue: room block x room rate Up to 10% (reimbursement) available for incentives

Program Process Submit application 60 days prior to event. Approval subject to funding availability and acceptance by program administrator. Submit final report within 30 days after event. Reimbursement payment will be made within 30 days of receipt and acceptance of final report.

Example Corporate group considering Dallas area meeting in June of 2019. Up to 50 rooms for 3 nights. Incentive could help DTPID hotel win business from non-participating hotels and properties outside city limits. Multiple properties may apply, but only one win.

Example Forecast potential room lodging revenue: 50 rooms x 3 nights x $159 room rate = $23,850 10-to-1 ROI requirement: $2,385 maximum funding available

Example Submit application and receive approval from program administrator. After event submit final report showing actual lodging revenue. Reimbursement will be amount originally approved or 10% of actual lodging revenue, whichever is less.

Program Performance 34 district properties have participated 614 applications 206 won group business opportunities Almost $1,000,000 paid to hotels for incentives Almost $15,000,000 in hotel lodging revenues 15 to 1 Return on Investment

Q & A

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