Transcript 2012-2013 Annual Meeting 2012-2013 Board of Directors • C. Terry Brown Chairman • Richard Bartell Vice Chairman • William L.

2012-2013 Annual Meeting
2012-2013 Board of Directors
•
C. Terry Brown Chairman
• Richard Bartell
Vice Chairman
• William L. Evans Treasurer
• Luis Barrios
Secretary
• Patrick Duffy
• Mohsen Khaleghi
• Robert A. Rauch, CHA
• Keri A. Robinson
President, Atlas Hotels
President, Bartell Hotels
VP / Managing Director, Evans Hotels
GM, Best Western Hacienda Hotel
GM, The Hilton La Jolla Torrey Pines
GM, Hyatt Regency La Jolla Aventine
GM/Partner, Hilton Garden Inn Del Mar
Area Managing Director,
Starwood Hotels & Resorts San Diego
•
John Schafer
VP / Managing Director Manchester
Grand Hyatt San Diego
01.23.13 Meeting Overview
•
SDTMD FY2012 Annual Report
•
Five-Year Recap of Initial District Results
•
Overview of District Renewal
•
Information Sessions:
•
Lodging Businesses: Changes to Reporting
Requirements
•
Applicants for Funding: FY 2014 Funding Guidelines
and Application Introduction
WWW.SDTMD.ORG
FY2012 Results
(pending performance audits)
•
$29 million deployed
• Supported production of 3,747,771 room nights
• $528 million in room night revenue
• Approximately 18:1 ROI
What We’ve Done:
Competitive Application
3rd Party Performance Audits
5-Year Recap
Initial TMD Results
•
•
•
•
•
Created accountability through standards,
measurement, audits and transparency
ROI measured in TMD Hotel Room Nights
Relieved pressure on City General Fund ($10.4
million in FY2009)
Stabilized TOT against economic downturn
Held our own or out-pacing other cities to attract
tourist spending
THE GREAT RECESSION
National Decline in Hotel Production
August 2008 to August 2009
•
Room occupancy:
• Average daily room rate:
• Revenue per available room:
•
Source: STR Global, Oct. 2009
down 7%
down 10%
down 13%
FY2009 RESULTS
•
$26.7 million deployed
• Supported production of 2,650,856 room nights
• $433.7 million in room night revenue
• Approximately 16:1 ROI
FY2009 SD Gaining Market Share
Against Regional Competitors
City
Los Angeles
Anaheim
Phoenix
Seattle
San Diego
San Francisco
Source: Smith Travel Resources
Change ’09 vs. ‘08
-0.56%
0.01%
0.07%
0.07%
0.17%
0.25%
FY2010 RESULTS
•
$21.5 million deployed
• Supported production of 3,545,500 room nights
• $481.5 million in room night revenue
• In excess of 18:1 ROI
•
•
SDTMD Hotel Occupancy 2.6% Higher than County
SDTMD OTA Trend Continued in Nights/ Revenue
SDTMD Properties Ranked #7
2010 National RevPAR
New York
Oahu
Miami
San Francisco
Washington
Boston
San Diego TMD
$176.10
$110.54
$97.82
$97.75
$92.90
$90.77
$88.56
Los Angeles
New Orleans
Anaheim
Seattle
$75.34
$70.09
$70.05
$69.39
Philadelphia
Chicago
Phoenix
Denver
Orlando
Minneapolis
$68.70
$65.02
$55.45
$55.44
$55.19
$52.87
Nashville
Tampa
Houston
Atlanta
St Louis
Dallas
Norfolk
Detroit
$49.93
$49.83
$48.41
$45.09
$44.96
$44.39
$43.12
$37.95
FY2011 Results
•
$22 million deployed
• Supported production of 3,267,501 room nights
• $458 million in room night revenue
• Approximately 20:1 ROI
•
•
US NEWS Travel Ranked San Diego as #3 Best Vacation
Destination
Collaboration and Economy of Scale
Is It Working?
•
•
•
•
SD Hotel Industry Oversight and Direction in
Partnership with the City of San Diego
TMD & City Double Filter of Checks and Balances
Funding = Aggressive Application, Vetting and Audits
ROI (est.) :
•
•
•
•
2008 - 2012: Over $112 million TMD funds deployed
Directly supported production of over 15 million SD room nights
Generating approximately $2.18 Billion in SD room night revenue
Overall estimated ROI of 19:1
Is It Working?
•
There are now 74 TMDs in California.
John Lambeth
President & CEO and SDTMD General Counsel
Statewide & National TMDs
•
74 TMDs currently in California
• Including “comp sets” San Francisco, LA and
Anaheim
•
•
California, Montana, Oregon, and
Washington have established TMDs
Texas, Florida, South Carolina, Oklahoma,
and Colorado in process of starting TMDs
SDTMD RENEWAL
•
•
•
SDTMD Initial Term Ended on 12.31.2012
40-Year Procedural Ordinance Passed by
City
CA Prop 26 Passed November 2010
• Mandates enhanced restrictions on funding
•
Revised Management Plan and Contract
Approved by Industry and City 11.26.12
PROP 26 OVERVIEW
•
•
•
Taxes require 2/3 voter approval
Not a tax if “A charge imposed for a
specific benefit conferred or privilege
granted directly to the payor that is not
provided to those not charged”
And “which does not exceed the
reasonable costs to the local government
of conferring the benefit or granting the
privilege”
PROP 26 OVERVIEW
continued
•
•
Not a tax if “A charge imposed for a
specific government service or product
provided directly to the payor that is not
provided to those not charged”
And “which does not exceed the
reasonable costs to the local government
of providing the service or product”
NEW DISTRICT MANAGEMENT PLAN
•
•
•
•
Reconstructed to Accommodate PROP 26
Refined District Created for Assessed Hotels
SDTMD Contractor Funding Not Guaranteed
Annual Distribution:
•
•
•
•
90% Sales & Marketing Programs
5% Contingency
5% Admin including fully loaded City Fees
Two Major Benefit Categories Created
–
Benefit Category A:
• TMD Meeting & Group Sales / Consumer Direct Sales & Marketing
• Payor Universe = Lodging businesses in City of SD with thirty (30) rooms or more
• Assessment @ 1.45%*
–
Benefit Category B:
• Destination Marketing with Specific Call to Action for TMD Lodging Businesses
• Payor Universe = All Lodging Businesses in City of SD
• Assessment @ 0.55%*
* All TMD lodging businesses of 30 or more rooms pay Categories A + B for total assessment of 2%
Benefit Category A
•
A1- Meeting and Group Sales & Marketing Programs
and TMD Consumer Direct Sales & Marketing Programs
•
A2 – Sub-Regional Targeting
•
A3 – Competitive Targeting
•
Payor Universe = Lodging businesses in City of SD
with thirty (30) rooms or more assessed at 1.45%
Benefit Category B
Destination Marketing with Specific Call to Action
•
Benefit Category B advertising campaigns and
earned media to drive sales demand for San Diego
TMD lodging businesses.
•
Payor Universe = All Lodging Businesses in City of
SD assessed at 0.55%.
•
•
Includes revenue from businesses with 1-29 rooms*; and
Includes revenue from businesses with 30 rooms* or more.
* % estimates to be provided by City
•
All campaigns must have proportional other-source
funding reflective of benefits.
STEPS & ACTIONS
•
•
•
•
•
•
•
•
•
•
B&F recommended adoption of revised Ordinance: July 20, 2011
City Council approval of revised Ordinance: October 6, 2011
B&F approval of in concept the management plan: July 25, 2012
City Council approval of ROI & management plan: September 25, 2012
Ballots sent out: October 10, 2012
Public Hearing: October 23, 2012
Ballot count & City Council approval of renewed district: November 26, 2012
Effective date of new district: January 1, 2013
Approve / publish FY 2014 applications: January 2013
SDTMD Annual Meeting & City Workshop: January 23, 2013
• FY2014 Application Deadline: February 8, 2013
• Public Application Presentations: February - March 2013
Q&A
John Lambeth
New District Formation
Tricia Mendenhall
Transient Occupancy Tax Accounting Supervisor,
Accounting Program, Treasury Operations Division
Office of the City Treasurer
Office of the City Treasurer
Changes to the Reporting Process
• TOT/TMD Return
• Online Payment Option
• Mandatory Online Payment Requirement
Office of the City Treasurer
New TOT/TMD Return
On January 31, 2013:
• Updates to Office of the City Treasurer’s
Website
• TMD is now split into two categories
Office of the City Treasurer
Online Payment Option - Changes
• First step – select reporting period
• Actively confirm TOT Certificate number
• Auto calculation of TMD amounts
Office of the City Treasurer
Mandatory Online Payments
• Online will be mandatory July 1, 2013
• Lobby Payment Option
• Exemption
• Benefits
Q&A
Tricia Mendenhall
Changes to Reporting Requirements
INTRODUCTION:
FY 2014 APPLICATION & GUIDELINES
“Hot Buttons”
•
•
Incremental Room Nights and Leads for TMD Assessed
Lodging Businesses
Cannot Benefit Non TMD Paying Lodging Businesses
•
Example – Coronado / Carlsbad / Casinos, etc.
•
Off-Peak Events and Promotions
• Geographical - Programs in Sub-Regions
• Possibility of Creating Long-Term / Legacy Events
• Quantifiable Results through Third Party Audits
• Economy of Scale
•
Example - Collaboration with Other TMD Contractors
Benefit Category
A3 : Competitive Targeting*
See Application / Guidelines - Appendix 4
•
A1.1
- Hotel Meeting Sales
•
A1.2
- Event Management and Group Sales Dev.
•
A1.3
- Tourism Development including Travel & Trade
•
A1.4
- Group Meeting Direct Marketing
•
A1.5
- Consumer Direct Sales & Marketing Programs
* Payor Universe = Lodging businesses in City of SD with thirty (30) rooms or
more assessed at 1.45%
EXAMPLE: Category A1.5
(see Appendix 4 )
A1.5 Consumer Direct Sales & Marketing Programs
•
Placement of consumer direct sales and marketing campaigns
including, but not limited to, Pay-Per-Click Online Banner Advertising
and dedicated Online Travel Agency (OTAs such as Expedia, Orbitz,
Travelocity) campaigns that are specifically designed to place booking
opportunities for assessed businesses in the grasp of consumers who
have or may have expressed an interest in traveling to San Diego.
•
Typical expenses include outside services such as advertising agency fees ; related
events and promotions; production and advertising costs, District-related personnel
salary, commissions, benefits, training, travel, printed material , promotional items,
information technology, market intelligence, research, and performance audits.
•
Typical indirect expenses include related contractor executive management,
information technology support, and general & administrative overhead.
EXHIBIT A:
PROPOSED SCOPE OF WORK NARRATIVE:
•
By Category A1.1 through A1.5, specifically detail
the scope of work of your proposed sales, marketing
/ promotional program and/or event using TMD
funding.
•
Your proposed scope of work narrative should
explain your line-by-line Exhibit B – Budget.
EXHIBIT B - BUDGET:
HOW TO REQUEST
“UNLOCKED” EXHIBIT - B BUDGET TEMPLATE:
EXHIBIT E – ROI WORKSHEET:
FY 2014 FUNDING CYCLE (TENTATIVE*)
January 2013:
•
FY 2014 Applications available by download / request
February 2013:
•
FY 2014 Application Deadline: February 8, 2013
•
Formal public board review of qualified applications
March 2013:
•
Funding recommendations of programs by board
•
Notification of funding intention to City
•
FY 2014 final budgets from approved organizations due on or about March 15, 2013
•
SDTMD submits FY 2014 Budgets with ROI projections and Scope of Work
assumptions to City on or about March 21, 2013
May-June 2013:
•
FY 2014 Budget presentation to City Budget Finance Committee / City Council
•
FY 2014 Contracts Issued
July 1, 2013: FY 2014 Begins
*Dates and funding cycle are approximate and may change without notice.
Q&A
Lorin Stewart
FY 2014 Application & Guidelines
Thank You…