Docstoc

tid_ppt

Document Sample
tid_ppt Powered By Docstoc
					  Proposed San Francisco
Tourism Improvement District
Why?

 Create sustainable revenue source for
  marketing and promoting San Francisco;
 Ensure that the City’s convention facilities
  are upgraded, state of the art and
  expanded;
 Remain competitive.
                 Hotel Tax Collections vs SFCVB Allocation
                 1999/00 to 2007/08* (in thousands)
                 *2007/08 based on mid-year forecast



                 $250,000




                                                                                                                                                   20
                                                                                                                                                 ,3
                                                                                                                                               23
                                                                                                                                            $2
                                                                                                                                      70
                                                                                                                                    ,7
                                                                                                                                  99
                                                77




                                                                                                                               $1
                                              ,3
                                   02




                 $200,000
                                            88




                                                                                                                         70
                                 ,1




                                                                                                                       ,4
                                         $1
                               82




                                                                                                                     79
                            $1




                                                                                                                  $1
                                                                                                            40
                                                                                                          ,9
                                                                                                        57
                                                                                       31




                                                                                                     $1
                                                                                     ,2
                                                                                   48
                                                                                $1
                                                             26

                 $150,000




                                                                          90
                                                           ,2
(in thousands)




                                                         32




                                                                        ,5
                                                                      28
                                                      $1




                                                                   $1



                 $100,000




                  $50,000




                                                                                                                                                $9,699
                                             $8,838




                                                          $8,917




                                                                       $8,627
                                $8,320




                                                                                       $7,970




                                                                                                         $7,740




                                                                                                                                   $7,944
                                                                                                                      $7,370
                      $0
                            1999/00      2000/01      2001/02      2002/03      2003/04              2004/05      2005/06      2006/07      2007/08

                                                                                City            Bureau
Competition
Competitive CVB Budgets
2007/08 (in thousands)

   100,000

    90,000

    80,000

    70,000

    60,000                                     Sales & Marketing
    50,000                                     total
                                               Sales & Marketing
    40,000                                     - w/o personnel
                                               Total budget
    30,000

    20,000

    10,000

          0
                        s
                        o




                                   o
                     DC




                                           s
                        o


                      le
                     sc




                                         ga
                                nd
                    eg


                  ge
                  ci




                                       Ve
                 n,




                             rla
                 Di
               an




              An
               to




                            O
              n




                                     s
           ng


          Sa
            Fr




                                   La
            s
         Lo
         hi
      n
    Sa


       as
      W
Hotel Tax Collection Allocations
2007/08 Average percentage - competitive set

             70%                                               64.7%

             60%

             50%

             40%
                                                                      28.9%
             30%
                                            22.8%
                            20.2%                                                        San Francisco
             20%                    15.1%                                   16.1%
                                                     14.4%                       13.7%   Comp set average
             10%
                         4.1%
                                                    0.0%
               0%
                                        r                         d              )
                        din
                            g
                                    nte        l ate
                                                     d
                                                            l ate           p ort
                               e                                       /s
                  fun       nc           rr
                                           e           rr
                                                         e
                                                                   rts
             MO       nt i
                          o           to            to        . (a
                                  isi           isi
           D
                 nv
                    e
                              r: v
                                              v            sc
               Co          he              on           mi
                       Ot           e r: n      he
                                                     r:
                               Ot
                                  h          Ot
Sales and Marketing: International

 Example: international in-market spending
   8,000,000




                                     0
                                  00
                                0,
   7,000,000



                             50
                             7,
   6,000,000
   5,000,000
                                            San Francisco
   4,000,000
                                            Los Angeles
   3,000,000
   2,000,000
                       000
                    0,




   1,000,000
                   40




          0
               Annual International Spend
Sales and Marketing: Convention

  Challenges:
    Inadequate resources to:
       Maximize Moscone occupancy;
       Grow self-contained business;
    High rental pricing/no buy-down fund;
    No $ for industry shows;
    Size/condition of convention facilities.
   Moscone Center: Issues




                            Pillars
Airwalls




           Wear and tear
Customer Advisory Council
San Francisco
Tourism Improvement District
SF TID Concept

 Visitors, through proposed surcharge,
  would fund:
   Increasingly aggressive sales and marketing
    programs for San Francisco;
   Improvements and upgrade of existing
    Moscone facility;
   Design, plans and costs of the expansion of
    Moscone.
Revenue Sources

 Two primary sources:
   Phase 1: SF TID assessment on hotel room
    nights;
   Phase 2: assessment on businesses in
    tourism-related business;
   Plus: retain City’s current SFCVB contribution
    to dedicate to Moscone upgrade and
    expansion.
Phase 1: Hotel Assessment

 Current TOT = 14%;
 SF TID assessment would add 1.5%;
 The total of 15.5% would be on one line
  on the guest folio:
   City will determine wording to reflect
    breakdown of 14% TOT + 1.5% SF TID
    assessment.
How we’ll compare
Total tax charged on a hotel guest’s room bill, in $, using an example
room rate of $200

        CITY                                       TOTAL TAXES EXTRA FEES TAX AS $
        Boston                                        17.45%                      $34.90
        Vancouver                                     17.00%                      $34.00
        San Antonio                                   16.75%                      $33.50
        Kansas City                                   15.73%                      $31.46
        Seattle                                       15.60%                      $31.20
        PROPOSED San Francisco                        15.50%                      $31.00
        Chicago                                       15.39%                      $30.78
        New York                                      13.38%              $3.50   $30.26
        Anaheim                                       15.00%                      $30.00
        Dallas                                        15.00%                      $30.00
        Atlanta                                       15.00%                      $30.00
        Washington, DC                                14.50%                      $29.00
        Los Angeles                                   14.00%                      $28.00
        New Orleans*                                  13.00%              $2.00   $28.00
        San Diego                                     12.50%                      $25.00
        *New Orleans' fee is a range of $1-$3, have taken average of $2
Management of SF TID Funds

 Managed by an independent non-profit
  management corporation board;
 Board will be comprised of industry
  representatives;
 SFCVB is a service provider to the SF TID
  Board;
 Allocation of funds will be determined by
  SF TID Board, not the City.
Allocation of SF TID Funds – part 1

 1 point, in place for 15 years
   70% - Marketing and promotions, including,
    but not limited to:
        Ad creative and media placement;
        Marketing;
        Satellite offices;
        Sales activities;
        Hosted industry events.
   22% - Administration and personnel for
    operations of the SFCVB;
   8% - Contingency/reserve.
Allocation of SF TID Funds – part 2

 0.5 point, in place for 5 years
   Upgrading and improvements to Moscone
    Center;
   Oversight and management of the
    improvements to Moscone Center;
   Expansion plans for Moscone Center;
   Contingency;
 PLUS: City will match approx. $9 million
  per year.
Timeline
                 TASK                        DATE TASK IS DUE/
                                            OR WAS COMPLETED
 Submit Draft Management District Plan           July 2008
                 to the City
   Mail Management Plan and SF TID             September 2008
 petitions endorsing plan to all affected
 hotels owners/operators in the District
  Submit petitions endorsing the plan,      End of September 2008
 representing a minimum of 50% of the
   rooms to the Board of Supervisors
   Ballots and notice of public hearing       Mid-October 2008
        distributed by mail to hotel
  owners/operators upon Resolution of
         the Board of Supervisors
   Ballots due, public hearing, ballots       December 9 2008
          counted, District formed
Questions
          San Francisco
   Tourism Improvement District



Joe D’Alessandro | SAN FRANCISCO CONVENTION & VISITORS BUREAU
Marco Li Mandri | NEW CITY AMERICA, INC.

				
DOCUMENT INFO