HomeMy WebLinkAboutSS4 - TBID - PowerPoint - VNBNewport Beach & Company
Tourism Business Improvement District
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Background
Formed in 2009 due to the recession and the need to stay competitive in the
Southern California meetings market.
A two percent assessment initially formed six major Newport Beach Hotels,
later joined by the Newport Dunes in 2011.
The TBID is an assessment district formed under California law. More than 70
cities in the state now have TBIDs, including Anaheim, San Diego, Los Angeles,
Huntington Beach, Laguna Beach, Costa Mesa and San Francisco.
The
TBID is
a voluntary assessment
decided by the hotels, and is not a tax.
The
City is
compensated at a rate
of .25% for collecting the funds and
providing them to Visit Newport Beach for group marketing purposes.
There are no costs to the city for administering or operating the TBID.
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TBID Return on Investment
Since being formed in May 2009:
TBID Contributions: $6,509,081
Hotel Revenue: $22,594,697
TBID ROI: 3530
Local Tax Generation (TOT and Retail) $6,199,855
Groups booked into Newport Beach: 422
Total Room Nights Generated: 100,268 (including the
Bowl Championship Series starting in Dec 2013)
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
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„Wr Year Comparison
2008 -2009
2009 -2010
2010 -2011
2011 -2012
2012 -2013
• Goal
12,500
1200
16,000
14,210
20,500
■Actual
10,115
12,063
13,131
28,649
_ 30,348
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TBID Renewal
• The current TBID expires in April 2014.
• The hotels are requesting a 3% TBID assessment and
a 10 -year agreement.
• The Island Hotel requests to join the TBID.
• The purpose of the TBID will remain the some - to
increase group room nights into the City of Newport
Beach.
Why 10 years?
- There is a need to grow markets that require
longer periods to cultivate and require
investment, specifically New York and
International (China and Middle East)
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- If the TBID ceases to be
productive,
the
hotels
can
terminate
it
with
a
51
% vote
(or
five
hotels)
why 3 %?
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EACH
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- Competing destinations are rapidly growing their budgets
- Third party meeting planners are using DMOs which require
time and investment
- The hotels are requiring more group marketing on the local
level to meet revenue goals
- Hotels require more customized sales strategies to develop
business, including sales missions and client events
- Projected growth and investment in the international group
markets
Iture
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n Newport Beach
The Newport Beach TBID hotels realize that a thriving arts and
culture component in the city is critical for the long term
success of Newport Beach.
The TBID hotels would like to offer up to $150,000 a year over 10
years in matching arts and cultural funds to benefit the city
from the increased TBID assessment.
The TBID hotels request that a Cultural Tourism component be
added to the proposed Cultural Master Plan to be developed.