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HomeMy WebLinkAbout2022-05-18; Carlsbad Tourism Business Improvement District; ; CTBID Annual ReportCARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT Staff Report Meeting Date: May 18, 2022 Subject: CTBID Annual Report Recommended Action Adopt a resolution approving the Annual Report of the Carlsbad Tourism Business Improvement District (CTBID) and submit the report to the City Council for approval at a June 2022 meeting. Item Explanation In accordance with Section 36533 of the California Streets and Highways Code, the CTBID Advisory Board is required to present an annual report for the City Council's review and approval for each fiscal year for which assessments are to be levied and collected to pay the costs for the improvements and activities described in the report. This report is to contain: • Any proposed changes to the boundaries of the CTBID • The activities to be provided for that fiscal year • An estimate of the cost of providing those activities (i.e., budget) • The method and basis of levying the assessment • The amount of any surplus or deficiency revenues to be carried over from the previous year • The amount of any other contributions Staff has prepared the annual report {Attachment A to Exhibit 1} which includes the above items. Staff recommends that the advisory board approve the annual report for presentation to the City Council at a June 2022 meeting. Fiscal Impact None. Environmental Impact This action does not constitute a "project" within the meaning of the California Environmental Quality Act under California Public Resources Code Section 21065 in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. Exhibits 1. Resolution DocuSign Envelope ID: 2BA75F69-8BO4-4DE5-8892-0680583F1312 RESOLUTION NO. 2022-8 A RESOLUTION OF THE CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT ADVISORY BOARD APPROVING THE ANNUAL REPORT FOR FISCAL YEAR 2022-23 EXHIBIT 1 WHEREAS, the Carlsbad Tourism Business Improvement District (CTBID) was formed in accordance with the California Government Code Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code Section 36500 et. seq. ); and WHEREAS, California Streets and Highways Code Section 36533 requires the CTBID Advisory Board to present an annua l report to the City Council for its review and approval for each fiscal year for which assessments are to be levied and collected to pay the cost for the improvements and activities described in the report; and WHEREAS, an Annual Report has been prepared for the 2022-23 fiscal year, and WHEREAS, the CTBID Advisory Board wishes to approve the Annual Report; and WHEREAS, the CTBID Advisory Board wishes to submit the report to the City Council for approval. NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Tourism Business Improvement District Advisory Board as follows: 1. That the above recitations are true and correct. 2. That the Annual Report shown at Exhibit A is approved in its entirety. 3. That the Annual Report will be presented to the City Council for its approval at a June 2022 meeting. PASSED, APPROVED, AND ADOPTED at a special meeting of the Board of Directors of the Carlsbad Tourism Business Improvement District on this 18 day of May 2022, by the following vote to wit: AYES: Stripe, Canepa, Rauch, Gray, Zupanski, Chapin NAYS: n/a ABSEN T: Becerra ABSTAIN: n/a DocuSign Envelope ID: 2BA75F69-88D4-4DES-8892-0680583F1312 EXHIBIT 1 TIM STRIPE, Chair t-FAVIOLA MEDINA, City Clerk Services Manager ATTACHMENT A Carlsbad Tourism and Business Improvement District (CTBID} 2022-2023 Annual Report Method of Assessment: The CTBID includes all hotel businesses located within the CTBID boundaries. The assessment shall be levied on all hotel businesses, existing and future, within the City of Carlsbad based upon a rate of 2% of gross short-term room revenue for all transient occupancies as defined in section 3.12.020(7) of the Carlsbad Municipal Code. The amount of assessment shall be separately stated from the amount of the rent and other taxes charged, and each transient shall receive a receipt for payment from the operator. The assessment will be remitted monthly, based on 2% of gross short-term room revenues for the previous month. Assessment Funding Purpose: To administer marketing and visitor programs to promote the City of Carlsbad as a tourism visitor destination and to fund projects, programs, and activities, including appropriate administrative charges that benefit hotels within the boundaries of the District. 2021-22 Work Plan: Last fiscal year, the CTBID assessment generated approximately $5,600,000 in revenue. The CTBID contracted with Carlsbad Convention and Visitors Bureau (dba Visit Carlsbad) to provide tourism marketing services for Carlsbad. In addition, $80,000 in grants were awarded to fund events to increase the overnight stays in Carlsbad hotels. The CTBID 2022-23 budget includes a funding level of $5,114,000 for Visit Carlsbad. This increased funding level is the result of the increase in assessment revenue due to the modification of the assessment rate from $1 per room night to 2% of gross short-term room revenue as well as a post pandemic rebound in the tourism economy. The services provided by Visit Carlsbad will focus on marketing efforts. The majority of this will be done by through promotional programs and group sales. Visit Carlsbad also has plans to hire a Finance and Administration Manager, Business Development Coordinator, Marketing/ Communications Coordinator, and an administrative assistant during Fiscal Year 2022-23. The CEO will help develop a business plan for Visit Carlsbad's future. The Visit Carlsbad Board will also review the CTBID grant applicants, for which there is $1,500,000 allocated this year, and make the funding recommendations to the CTBID Board. Detail of the 2022-23 budget is shown on the following page . 2022-23 Recommended CTBID Budget 2019-20 2020-21 2021-22 2021-22 Actuals Projected Recommended Program Areas Description Actual Actual Budget as of 2/28/22 2021-22 Actuals 2022-23 Budget Carryover Fund Balance Fund Balance $640,318 $617,139 $1 ,840,227 1,840,227 1,840,227 4,173,227 Revenues: CTBID Assessment 2% of Room Revenue (was $1 per room night prior to 11/1/20) 1,088,860 1,867,248 3,600,000 3,938,526 5,600,000 5,700,000 Interest Earnings 21 ,384 17,327 Total Estimated Revenues 1,110,244 1,884,575 3,600,000 3,938,526 5,600,000 5,700,000 Expenditures: 2% of CTBID assessment revenue, for collection of 2% Admin. Fee -City CTBID assessment and accounting for CTBID 21 ,045 37,344 72,000 72,401 112,000 114,000 CCVB Payment To operate visitor center, market and promote Carlsbad 1,040,326 576,425 3,000,000 1,222,080 3,000,000 5,114,170 Staff support Staff support to the CTBID 20,438 17,718 50,000 10,996 25,000 50,000 Professional Services Civitas Contract 32,960 50,000 50,000 CTBID Grants Grant program established by CTBID Board 18,654 30,000 100,000 80,000 1,500,000 Total Expenses 1,133,423 661,487 3,272,000 1,305,477 3,267,000 6,778,170 Ending Fund Balance Contingency for Revenue shortfall $617,1 39 $1 ,840,227 $2,168,227 $4,473,276 4,173,227 3,095,057 Visit Carlsbad Fiscal Year 2022-2023 Key Initiatives and Budget With its exciting family fun, sunny beaches and rejuvenating lifestyle, Carlsbad welcomes all to experience the warmth and vibrance of one of California's most invigorating destinations. We promote and elevate the perception of Carlsbad through innovative programs that enhance the visitor economy while preserving our exceptional quality of life. We will be known as: Centrally located between Los Angeles and San Diego, Carlsbad is a vibrant place to make memories for families and travelers who want: Elevate the destination and the brand Create year-round demand Grow Group/Corporate meetings market Build the organization • Results and service-oriented • Creative • Nimble • Credible • Seven miles of pristine Southern California beach. • Abundant access to outdoor recreation, including surfing, biking, and trails. • Bold and Innovative • Ease and accessibility to family-friendly experiences, including Legoland. • Luxury resorts, hotels and spas, as well as affordable family options. • Inclusive • Increase y/y marketing effectiveness using 2021/22 H2R research as as the baseline. • Establish sentiment/perception baseline in 2022. • Increase brand awareness as measured by reach and earned media impressions. • Support increased occupancy during shoulder season. • Increase y/y incremental visits by X% using 2021/22 H2R research as the baseline. • Achieve a minimum of 50 groups incentivized per year. • Support Group hotel performance as compared to competitive set. • Support Group activity/growth based on target segments as identified by hotel partners. • Achieve a minimum of 90% affirmative response to target stakeholder engagement survey question(s). • Increase economic impact of Carlsbad tourism by X% by 2024 using 2022 as the baseline. • Achieve successful annual audit. • World-renowned golf courses and tournaments. • Conduct brand pre-and post-research sentiment evaluation • Launch new brand campaign • Develop and deploy brand toolkit • Develop content strategy • AttracUSponsor few events through partnerships • Develop and implement seasonal campaigns that support year-round reasons for visitation • Develop and implement tactical geo/feeder market strategies + need periods • Develop a branded toolkit of assets for hotel sales teams • Form a committee of select services properties and conduct needs assessment • Create differentiation statements against key markets • Create awareness of/menu of Carlsbad experiences specific to groups • Host annual meeting/quarterly townhall • Design and implement staff engagement survey • Implement two-year staffing growth plan • Develop an equity statement that informs all work of organization Department FYE'23 Proposed Budget % of Budget Marketing & Communications $2,593,000 50.70% Business Development $316,520 6.19% Group Incentive Program $1,000,000 19.55% Salaries & Benefits $980,000 19.16% General and Administration $224,650 4.39% Total $5,114,170 ,-~ 1/!sir..l b d ~cars a Marketing/Communications Budget –$2,593,000 Strategic Area of Focus: Elevate the Destination and Brand Strategy: Reintroduce Carlsbad with New Brand Platform •Full-service advertising agency retainer to execute year-round brand presence •Overhaul, produce and deploy all new assets (IE. collateral, website, email templates, photo library) for Visit Carlsbad use and toolkits for tourism partner use •3rd party social media agency support for strategy and community management •Continue golf travel earned media contract •Continue producing evergreen video and blog content according to annual content calendar that further emphasizes brand platform Strategy: Raise awareness of the off-season experience in Carlsbad •Fully integrated domestic campaigns for Fall 2022 and Spring 2023 •Paid Advertising: Media Planning/Buying with targeting based on new traveler personas research, creative asset development, web, video and Connected TV, paid social, retargeting display, digital radio •Earned: Utilize external PR firm on a project fee basis to support Fall and Spring campaigns Strategy: Leverage new audience insights and research tools to optimize program investments •Execute multicultural marketing strategy based on roadmap developed FYE’22 •Visa Vue quarterly visitor spend research •Kolibri Labs segmentation •Complete 2022 Visitor Profile and Economic Impact study •Carlsbad-specific hotel forecast Strategy: Raise international awareness of Carlsbad in target markets based on airlift into SAN •Paid campaigns leveraging Brand USA, Visit CA and/or tour operator resources in Mexico, Germany and Canada •Visit California sales missions in Mexico, Canada, Germany •Travel Trade Shows –TBD •Golf Travel Industry Shows -TBD Marketing/Communications Continued Strategic Area of Focus: Drive year-round demand Strategy: Raise awareness of Carlsbad as a Meetings Destination •Visit Carlsbad-led sales Missions to Atlanta, Bay Area and Chicago with hotel partners •Sponsorships –MPI and SITE targeted to Atlanta, Bay Area, Chicago, Toronto, Vancouver •Meetings Tradeshows –Association Forum, FICP, Cvent Connect, IMEX (Host client event or attend within Visit CA presence) •Year-Round Meetings focused digital/social campaign utilizing LinkedIn, eMail marketing and content development •Facilitate individual familiarization tours of meeting planners in partnership with hotels with airfare or transportation Strategy: Engage/Support Carlsbad hotel sales teams •Execute Hotel Community Quarterly Engagement Activities –3 mixers and 1 annual meeting •Create Limited-Service Properties Task Force to conduct needs assessment •Provide branded sales collateral to partners Business Development Budget -$316,520 Strategic Area of Focus: Grow Group/Corporate Meetings Market Strategy: Incentivize Groups who to Book in Carlsbad with new Group Program •Allocate $1,000,000 for incentives contracted in 2022 but can actualize through 2024, so this would stretch across multiple fiscal years •Ensure group incentive program is incorporated into all group awareness campaigns •Per CTBID request, funds would be housed in a separate account Group Incentive Program Budget -$1,000,000 Strategic Area of Focus: Grow Group/Corporate Meetings Market •Strategy: Align organizational structure to best deliver upon strategic plan •FYE’23 potential FTE positions •Finance & Administration Manager •Business Development Coordinator •Marketing/Communications Coordinator •Administrative Assistant •Strategy: Raise profile of Visit Carlsbad within the local community •Open new office space reflective of new brand and organization •Cultivate opportunities for board and Visit Carlsbad staff to speak about the positive impacts of tourism in community forums •Strategy: Attract and retain talent by prioritizing culture, professional development and responsive/flexible work environment •Teambuilding •Training/Conferences •Individual growth plans •Benefits optimization Salaries & Benefits Budget -$980,000 General & Administration Budget -$224,650 Strategic Area of Focus: Build the Organization Thank You!