San Diego Tourism Marketing District FY2020 Report of Activities and - - PowerPoint PPT Presentation

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San Diego Tourism Marketing District FY2020 Report of Activities and - - PowerPoint PPT Presentation

Sep 19, 2023 364 likes •537 views

Economic Development Department San Diego Tourism Marketing District FY2020 Report of Activities and Supplemental Funding Request Economic Development & Intergovernmental Relations Committee Meeting of April 11, 2019 Item 2 Economic

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San Diego Tourism Marketing District FY2020 Report of Activities and Supplemental Funding Request

Economic Development Department

Economic Development & Intergovernmental Relations Committee Meeting of April 11, 2019 – Item 2

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Economic Development

TMD Overview

Renewed effective January 1, 2013 Modified effective September 1, 2016

  • Elimination of lodging businesses/assessment <70 rooms
  • No separate categories of benefit or assessment
  • Updated Activities and Funding Guidelines

New Operating Agreement effective November 1, 2016

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Economic Development

Tourism Outlook

Influential Economic Indicators

  • Strong fundamentals, but market correction expected and policy uncertainty

exists

  • Labor market and consumer spending strength
  • Business indicators showing signs of possible weakness
  • New hotel supply growth
  • Drive-market constraints

Moderate Growth Projected

  • Occupancy levels
  • 78% in 2019 to 77% in 2020
  • Note: Demand is being outpaced by Supply growth
  • Average Daily (room) Rate (ADR)
  • +2.5% to $169.57 in 2019 and +2.5% to $173.81 in 2020
  • Revenue per Available Room (RevPAR)
  • $132.23 in 2019 to $133.91 in 2020

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Economic Development

FY2020 Available Funds

Source $

Projected Assessments $ 41,040,340 Projected Interest & Penalties $ 160,000 Projected FY19 cfwd – non-Litigation $ 4,276,339 Projected FY19 cfwd (mod) –Litigation Reserve $ 1,000,000 Total $ 46,476,679 Litigation Reserve FY19 cfwd (A/B) $ 21,000,000

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Economic Development

FY2020 Recommended Allocations

Non-TMD Entity / Purpose Allocation Funds

SD Tourism Authority Base $ 39,202,838 $ 4,507,056 ANOC World Beach Games $ 500,000 $ 24,020,035 California Police Athletic Federation $ 75,000 $ 457,100 California State Games $ 175,000 $ 517,400 Pro Am Beach Soccer $ 30,000 $ 56,200 San Diego Bay Wine & Food Festival $ 74,500 $ 896,500 San Diego Bayfair - Thunderboats $ 95,000 $ 380,000 San Diego Brewers Guild $ 31,000 $ 99,000 San Diego Bowl Game Assoc. – Holiday Bowl $ 410,000 $ 8,640,269 San Diego Crew Classic - Spring $ 195,000 $ 854,000 San Diego Surf Cup – Thanksgiving Challenge $ 40,000 $ 80,000 USA Ultimate Frisbee $ 30,000 $ 81,150 Wonderfront $ 500,000 $ 9,810,499 TOTAL $ 41,358,338 $ 50,338,309

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Economic Development

FY2020 Other Recommended Allocations

Purpose Allocation Opportunity/Catastrophe $ 1,995,187 City & SDTMD Administration $ 2,123,154 Litigation Reserve (modified district) $ 1,000,000 Total $ 46,476,679

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Economic Development

FY2020 Program Highlights - SDTA*

Target ROI overall 21.7 to 1 Grow Market Share within Competitive Set Cities**

  • 16.19% in 2019

Maintain NEW single-property group room nights

  • 461,000 in FY19

Book 800,000 Convention Center-related room nights in FY20 for future years

*Subject to updating and SDTA Board approval ** Western Region Competitive Set - source: Smith Travel Research

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Economic Development

FY2020 Program Highlights – Other Entities (1 of 4)

ANOC World Beach Games - $500,000

  • Room Nights: 35,275
  • Target ROI overall: 14.5 to 1
  • Event: International beach and watersports competition

California Police Athletic Federation - $75,000

  • Room Nights: 6,241
  • Target ROI overall: 15.7 to 1
  • Event: United States Police & Fire Championships

California State Games - $175,000

  • Room Nights: 17,500
  • Target ROI overall: 16.8 to 1
  • Event: Youth Summer and Winter sports competitions

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Economic Development

FY2020 Program Highlights – Other Entities (2 of 4)

ProAm Beach Soccer - $30,000

  • Room Nights: 1,600
  • Target ROI overall: 8.5 to 1
  • Event: International beach soccer competition.

San Diego Bay Wine + Food Festival - $74,500

  • Room Nights: 2,640
  • Target ROI overall: 8.0 to 1
  • Event: A week of culinary events highlighting the City’s

growing culinary tourism industry.

San Diego Bayfair/Thunderboats Unlimited - $95,000

  • Room Nights: 16,033
  • Target ROI overall: 35.3 to 1
  • Event: Performance boat racing on Mission Bay

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Economic Development

FY2020 Program Highlights – Other Entities (3 of 4)

San Diego Bowl Game Association – Holiday Bowl - $410,000

  • Room Nights: 15,000
  • Target ROI overall: 5.8 to 1
  • Event: Holiday Bowl featuring teams from Pac-12 and Big Ten

San Diego Brewers Guild - $31,000

  • Room Nights: 775
  • Target ROI overall: 5.7 to 1
  • Event: Craft beer festival highlighting San Diego as the “Capital of Craft”.

San Diego Crew Classic – Spring - $195,000

  • Room Nights: 8,024
  • Target ROI overall: 7.4 to 1
  • Event: Collegiate, high school, open/alumni, masters rowing

events in spring; kicking off US rowing season.

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Economic Development

FY2020 Program Highlights – Other Entities (4 of 4)

San Diego Surf Cup – Thanksgiving Challenge - $40,000

  • Room Nights: 7,700
  • Target ROI overall: 31.8 to 1
  • Event: Established youth soccer tournament spanning

three days of Thanksgiving weekend

USA Ultimate Frisbee - $30,000

  • Room Nights: 3,000
  • Target ROI overall: 15.0 to 1
  • Event: National championship competition.

Wonderfront - $500,000

  • Room Nights: 18,000
  • Target ROI overall: 7.9 to 1
  • Event: Music, arts, culinary and cultural festival.

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Economic Development

FY2020 Supplemental Request from Litigation Reserve (A/B)*

Purpose Allocation SD Tourism Authority $ 6,999,332

  • National Cable Broadcast Advertising
  • Digital Advertising and Family Audience Campaigns

Measuring Effectiveness – Room Nights and ROI - TNS/OmniTrack

SDTA FY20 base body of work ~ 4.5 million Supplemental funding ~ 0.6 million Combined room nights ~ 5.1 million Combined Program ROI ~ 21 to 1. TNS/OmniTrack methodology - verifies effectiveness of both programs of work.

*Requires Third Amendment to Operating Agreement (Litigation Reserve and Withholding Schedule)

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Economic Development

Highlights of FY2020 Supplemental Request

Digital Advertising and Family Audience Campaigns - $3,810,312

  • Digital advertising is highly targeted and efficient direct marketing
  • “Always-on” Content showcasing San Diego’s diverse amenities will be distributed across a variety of media
  • utlets
  • Continued partnership with Trip Advisor, the world’s largest travel site
  • The family audience will be targeted with specific messaging and through media partnerships to combat

the “been there/done that” and Anaheim/Star Wars Land launch

National Advertising, Cable Broadcast - $3,189,020

  • Television advertising will shift from 9 spot markets to a national cable buy increasing San Diego’s

audience five times to nearly 200 million

  • TNS/OmniTrak ROI Study shows combination of television and digital are the most efficient in converting

consumers to travel to San Diego

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Economic Development

Summary of Requested Actions

  • Approve FY2020 Annual Report of Activities and associated

expenditures.

  • Approve FY2020 Supplemental Funding Request and associated

expenditures and Third Amendment to Operating Agreement.

  • Authorize processing of any outstanding FY2019 reimbursements in

FY2020 and associated expenditures, and cost recovery of City administration expenses for auditing and administration of prior TMD Funds.

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Economic Development

Questions

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