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HomeMy WebLinkAboutApprove Huntington Beach Tourism Business Improvement Distri (3) 'INGT 2000 Main Street, of f, h Huntington Beach,CA mF City of Huntington Beach 9 - 4 APPROVED 7-0 za F�GlINTY��\� File #: 23-849 MEETING DATE: 11/7/2023 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Al Zelinka, City Manager VIA: Jennifer Villasenor, Acting Director of Community Development PREPARED BY: Kriss Casanova, Economic Development Manager Subject: Approve Huntington Beach Tourism Business Improvement District (HBTBID) Annual Report for Fiscal Year(FY) 2023-24 • Statement of Issue: In 2014, the Huntington Beach Tourism Business Improvement District (HBTBID) was formed pursuant to the California Property and Business Improvement District Law of 1994, which authorized special benefit assessment districts to raise funds within a specific geographic area. The purpose of the HBTBID is to increase overnight lodging sales with targeted marketing and promotions. Funding for the marketing programs and activities of the HBTBID are derived from assessments collected from lodging businesses operating within the City of Huntington Beach (City) boundaries. The current assessment rate is four percent (4%) of gross short-term lodging revenue from room rentals under 30 days. Visit Huntington Beach (VHB), a non-profit 501(c)6 organization, serves as the HBTBID's Owners' Association. VHB is responsible for implementing the programs identified in the Management District Plan (MDP) and for submitting an annual report to the City Council for their approval in accordance with California Property and Business Improvement District Law of 1994. Financial Impact: There is no financial impact associated with the recommended action. Recommended Action: Approve the Huntington Beach Tourism Business Improvement District (HBTBID) Annual Report for FY 2023-24. Alternative Action(s): Do not approve, and request VHB to modify the Annual Report. City of Huntington Beach Page 1 of 5 Printed on 11/1/2023 powered74r LegistarTM File #: 23-849 MEETING DATE: 11/7/2023 Analysis: Background Promoting Huntington Beach as a desirable tourism destination and increasing the City's lodging brand awareness is essential to the City's continued economic vitality. In 2014, the HBTBID was formed pursuant to the California Property and Business Improvement District Law of 1994, which authorized special benefit assessment districts to raise funds within a specific geographic area. This approach has been used successfully in other tourist destination communities throughout California to increase demand for room night sales at lodging businesses. The purpose of the HBTBID is to increase overnight room night sales with funding dedicated to marketing and public relations, group sales, and visitor services enhancements. Funding is derived from assessments and revenues collected from all lodging businesses, existing and in the future, available for public occupancy located within the City boundaries, which include Sunset Beach. HBTBID is comprised of approximately 21 hotels/motels and 225 short-term rentals (STRs). Visit Huntington Beach (VHB), a non-profit 501(c)6 organization, serves as the HBTBID's Owners' Association and is charged with managing funds and implementing programs in accordance with the HBTBID Management District Plan (MDP). The City collects the assessments from the lodging businesses, monthly for hotels/motels and quarterly for STRs, and then distributes the funds to VHB. The HBTBID term runs through June 30, 2028. The current assessment rate is four percent (4%) of gross room rental revenue for short-term stays. This assessment is separate from the City's ten percent (10%) Transient Occupancy Tax (TOT). In 2019, the HBTBID was renewed and the assessment rate was increased by one percent (1%), from three percent (3%) to four percent (4%). At the same time, a Memorandum of Understanding (MOU) between the City and VHB was replaced with a TBID Management Agreement that sets forth the duties and responsibilities of the City and VHB. The MOU required the City to convey one percent (1%) of the City's TOT revenue to VHB. This TOT revenue sharing was eliminated in the TBID Management Agreement, which provided that 100% of TOT revenues would be retained by the City and that funding to VHB would remain unchanged with the one percent (1%) assessment rate increase. VHB consists of approximately 14 staff members and 22 board members dedicated to promoting tourism to Huntington Beach and increasing overnight stays in Huntington Beach hotels and short term rentals. VHB is responsible for implementing the activities and services identified in the MDP and for submitting an annual report to the City Council for approval. Annual Report VHB has submitted its Annual Report (Attachment 1), which summarizes the programs and activities for FY 2023-24. Core goals for the upcoming year include strengthening and enhancing Huntington Beach's Surf City USA® brand, marketing and promoting Huntington Beach as a tourism destination, increasing occupancy at Huntington Beach lodging properties, establishing partnerships within the tourism community, better positioning Huntington Beach as a filming destination, and expanding a presence in emerging markets for tourists. City of Huntington Beach Page 2 of 5 Printed on 11/1/2023 powered? 'LegistarTM File #: 23-849 MEETING DATE: 11/7/2023 VHB will continue to leverage Visit California's tourism efforts and extend its presence into key domestic markets to ensure Huntington Beach is well positioned to attract a balanced and wide range of visitors. Key markets include California, Phoenix, Dallas, Seattle, Chicago, New York, and other border states, while increasing and/or re-engaging in Tier 1 international markets (United Kingdom/Ireland, Canada, Mexico) and Tier 2 international markets (Australia/New Zealand, Japan, and Germany). VHB's initiatives and programs for the upcoming year will focus on four areas in line with goals of their Strategic Plan for FY 2023-26: 1. Driving Global Brand Awareness - Programs that increase the visibility of Huntington Beach and the Surf City USA® brand as the quintessential California beachside experience by strategically targeting key media, travel trade, meeting planners, and leisure and business travel markets around the globe to increase overnight visitation, visitor spending, and events/group meetings. • Launch soft season campaigns highlighting HB lifestyle pillars of outdoors, wellness, family, active sports, dining, and shopping as micro-campaigns designed to encourage visitation and overnight stays. • Leverage Visit CA's "CA Road Trips" "Kidafornia" and "Ultimate Playground" themes. • Promote 2023 ISA World Para Surfing Championships (NOV 2023). • Issue a Request for Proposal for a creative agency of record. • Attend two of the largest sales trade shows (IMEX 2023 & IPW 2024). • Launch Show Your HB Love 2024 marketing campaign. • Leverage the World Cup and LA28 to expand global destination brand awareness and secure offsite activations. 2. Enhancing Destination Stewardship - Programs that help ensure that the places to eat, shop, play, and stay in Huntington Beach are enjoyed by residents and visitors alike, and that those experiences are fun, unique, accessible, memorable, and inspire repeat visitation. • Develop outreach and education to enhance customer service for all visitors including international and accessible communities. • Engage in discovery research towards accessible certified destination. • Survey key customer user groups to better understand ways to increase the frequency of booking meetings and special events in Huntington Beach. • Help implement pertinent destination improvements recommended by Responsible Hospitality Institute's sociable city assessment. 3. Championing the Value of Tourism - Programs that educate residents, visitors, local businesses, government officials, and community stakeholders on the vital role of the travel & tourism industry and provide a greater understanding of its impacts and benefits. • Seek approval of the assessment rate modification for the Huntington Beach Tourism Business Improvement District. • Develop annual Tourism 101 forum to help residents and businesses gain a greater City of Huntington Beach Page 3 of 5 Printed on 11/1/2023 powerea§r LegistarT" File #: 23-849 MEETING DATE: 11/7/2023 understanding of the local tourism industry. 4. Prioritizing Organizational Effectiveness and Culture - Programs that ensure VHB's spirit of service is operating at optimal efficiency and, as Huntington Beach's destination management organization, is consistently delivering on its Mission, Vision, and Brand Promise to visitors and residents. • Develop customer sentiment survey. The following matrix summarizes the proposed revenues and expenditures to be funded with assessments for FY 2023-24. HBTBID Reporting Year FY 2023-24 Revenues Estimated TBID Assessments $7,090,560 Retail, Web Ad, Walking Tour Sales $21,220 Total Revenues $7,111,780 Estimated Carry-over from Previous Fiscal Year $459,200 Total Funds Available $7,570,980 Expenditures Tourism Enhancement Programs (83%) $6,301,912 Administration (15%) $1,154,067 Contingency/Reserve (2%) $115,000 Total Expenses $7,570,979 VHB bases its revenue assessment projections on several factors, which vary and include anticipated group meetings business, return of more signature events, weather, anticipated demand, hotel partner projections and the addition of STR inventory. Assessment revenues for FY 2023-24 are estimated to be approximately four percent (4%) higher than last year and are budgeted at $7,090,560. This amount does not include a one percent (1%) administration fee retained by the City for collecting and disbursing assessment revenues. Total revenues also do not include a rollover of $459,200 from FY 2022-23 but are included in the total funds available for FY 2023-24. These funds have been allocated to Tourism Enhancement Program projects for the upcoming year. Administration expenditures (15%) fund the administrative staffing costs, office costs, and other general costs such as insurance, legal, and accounting fees. The majority of expenditures fund Tourism Enhancement Programs (83%) which include a wide variety of services and programs and the associated staff time of two sub-programs: sales and marketing and visitor services enhancements. A summary of each sub-program is provided below and more detail can be found on page 28 of the Annual Report: City of Huntington Beach Page 4 of 5 Printed on 11/1/2023 powered 7b'LegistarM File #: 23-849 MEETING DATE: 11/7/2023 • Sales & Marketing - The sales and marketing program promotes assessed lodging businesses as tourist, meeting, and event destinations with a central theme of promoting the Huntington Beach destination brand as a desirable place for overnight visits. Goals of the program include increasing overnight visitation, room night sales at assessed lodging businesses, and visitor expenditures. • Visitor Services Enhancements (VSE) - The VSE program includes initiatives based on criteria to be developed by VHB and reviewed and approved with the City with a focus on the entire destination footprint to ensure a consistent brand experience throughout Huntington Beach. Current programs include the Nighttime Ambassador Program partnership with the Downtown Business Improvement District, the Visitor Information and Digital Information Kiosks at Pier Plaza, Visitor Info Booth at key events, Team Surf City USA Volunteer Program, and VHB staff guided Downtown and Surf Themed Historical Walking Tours, Barrel Trail, Scavenger Hunt, and Photo Trail, designed to keep visitors longer in HB. The budget was approved by VHB's Board of Directors at its June 27, 2023 meeting. The City Council may approve the Annual Report or may modify any section contained in the Annual Report and approve it as modified. Environmental Status: Pursuant to CEQA Guidelines Section 15378(b)(4), government fiscal activities that do not result in a physical change in the environment and do not commit the lead agency to any specific project, do not constitute a project. Therefore, these activities are exempt in accordance with CEQA Guidelines Section 15060(c)(3). Strategic Plan Goal: Goal - Economic Development, Strategy A - Develop an updated economic development strategy to ensure business retention, local investments and job growth. For details, visit www.huntingtonbeachca.gov/strategicplan <http://www.huntingtonbeachca.gov/strateg icplan>. Attachment(s): 1. Visit Huntington Beach FY 2023-24 Annual Report 2. Powerpoint presentation - HBTBID FY 2023-24 Annual Report City of Huntington Beach Page 5 of 5 Printed on 11/1/2023 powered7i LegistarTM .':=� � *"" +3. x—' u" ` ,,,� '-,4�-;.ti, a=:_ �;' _ .fir '� � ',,. Arrr _r,-- ft,__-_-rie„ --_,,,,, ---- - _ - _ - _ - - _ VISIT HuNTINLIToN BEACH FV23.24 Ili I I RT , ,,,,. . .. . . .. ,.._,,, ,...i. b' . , .... . . ." .. , . .. w:,y-, ,...s._.,h!, .,+,.:,. _ ' Lm -5w 'Ihh(.I�i."' ... Y ._ a >;:: �' _gar" r=x.. °.+.. ""$ _ - .y ►� ,;;#M+- Y ��r > ..+K:..;, .- '�`'`�• a "",��r '„�z*'m'?.•4��ut' _ �'� wi'� , ; . ^tom y..� .a�u_�,� i'� =L�, ,� � � �� a,: jk;� � � ".4 ';4. a .fi . 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Hotels&Resorts c , . - n .. - .421,4..r0,n.z"..4.0.05.11.1 Of 44 $.„,r,cir,,,sogot 0,,,,,,t,,,*PqmKo, C11,1ffibtVitrel Huntington..—. ..,—....__- .-.-Bea-...—c,h - Average Time on Site : 1 . 24 ...........,. .., ............._,.. ..r, ....... ....„. ............., ,.... • 41k,' ,,,-4,,,,, Ntkt .....- ,,,,,' ,........ ..•-•„ ....7,47 _ i "*---ir.... ......... dr . . , N si ,O... .....". 1 Note: To date, earned two . ... N. 9 ... 1 ... - .... au 3 Design Awards more Awards post-FY 22- i . 9.. 1 ............. time period. .:„.7.7-77,...-..-n-7*.7.- - • '-— '.,;,....4": KEY MARKETING METRICS (ffiD 2022/2023) 9 YIMI Wnti vent Msch e',taarGreten _ C4c x irt.T d SOCIAL MEDIA On.3.....0 bss:,ik Mil the to ceMMate Oa, aaenthenna that here WOW ex VIdtht n and mound w aqe bat„rnvga.'+asaea 4 v t"" ... 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Yis+t Nunn gton @caGh • Instagram Total Engagements: 179,600 nt+ara3t,Gxels NN for thus Thtesalay's a,,S10,,Cai � =„xr*tarvn Hunt fallen Beath Vlalkng Tour"The lour .� Oegnxs at 3pn at the Vmator Inter matte Kiosk tocated at • Facebook Total Engagements: 10,800 base of Hun*ngten BeachS 9 guile me take 't. you through a stroll of Deve l .rn,sharing KGatesteag facts 't and stories iron the past,1.tckels are lust$6 each and " "3�wk'+t'.. include a surptehe at the Cnd,We hope to'war you there, • Linkedln Total Engagements: 93,219 -: • au , ,. , _ "". a.., r hi'1,,j/rile Ear@nt r�Y rle.Coahte .hun,rhgton_beach. , •300w0 ore#tutg-fout.f.kets P7932866377 Referral Traffic 0 0 V A **to t' ;1 i'it..,kti eY nafnatcCertl a<+d MOtMalle w + a g 1t "• f # . a Al ere attic*MOlt HOS.I tar ee ttsWM� tr • 146 283 Total Social Media Referrals -- , —:=.r ,� t az, ',.1 +,Mar ol raca nsewtse eatrntea'the rasa••s kaatW P+at f , t o<> ,� If ateeshamtheaace Eve&tun Ma+.bars*a dock from the . d. t t ;t l few.feak f� ! Pon event r re unners) •rea*a+SM sea b an+v sta ses aeq+a+eetx � d i' for avert ttMtMta) # � Increased all social media engagement and `"�' '��'��our OW �arh,.rtrptmReacn atwr•Cavu%aeawre 1,5u0Ctryu4,403an s. ttMCtutan aennSsatCrtY ✓`". _ ..... ...1110106M 30 communities by 25% f: : e.a;;:t, M waterttoeW esa achrt brat a tow awe Gaya,6 ++•tnu MpTMi sss 00 3, 1 comment 1 share 7 VISIT HUNTINGTON BEACH 0-1 � .20 63 6- 0 00 CO -EO Lli FL" 0 C'o 2 0 (D pq a) E uj z FLnil 4� p'n V) di Ln OL < = `—® z rii-L z co 0 m V) > 0 z } m u E c V �O �i A5 O T s$ O a q , P a x � x x �5 9 u C � � w �p Z LU U c Y �t ca h.) 00 s s LA TOURISI,,. ,, .'--7- z- ..,_=-* ,„ ,* .-.7 E l �� 1+1 mu z' S 'a'oi .. =� fY , 1 4 .S= In April 2023, Visit Huntington Beach was honored to host California Cup Golf Invitational 2023. The 4-day long event brought together 75 international travel trade buyers and California suppliers for HB experiences, business development, and industry networking. Each year, CA Cup Invitational gives back to a local charity through funds raised from international and CA auction prizes. The { 3 Waymakers Huntington Beach Youth Shelter was selected and received a record � a , ` °'ay g � �� � �,� $16,000 to benefit the Local families and youths they serve. ,/" • a - ONLY U 5 DE INATION PARTNER ON INAUGURAL AUTISM . AVIATION DAY AT VICTORIA TORIA INTERNATIONAL AIRPORT r • Supporting Air Canada, the Air Canada a Foundation, and CAN (Canucks Autism .1:: , / : Network) community's inaugural Autis411'm Aviation Day, VHB welcomed over 50 % ' us: lor . � � individuals including children on the ' autism spectrum. The event provided an ` � opportunity for youth on the autism ' , ,*-„ram T' ;i1174*i' ‘ ...zposte,,i1t40x: � wa spectrum (and their families) to rehearse Z 7.0.111:1 r the entire pre-flight process; the goal is to � ` "! r increase autism accessibility and encourage i ` iti future travel. 10 VISIT HUNTINGTON BEACH TOURISM DEVELOPM 'YE) ENT ' d ' d ONE-ON-ONE AGENT INTERNATIONAL APPOINTMENTS TRAININGS FAMS GO WEST: 40 CA STAR: 183 1*1 II IPW 2023: 62 UK & MEXICO SALES MISSIONS: 250 � CA CUP: 35 AGENCIES: 300+ w— ► 0-0 Al MI SIN AND TRADE ..:.: ` - .... "' .._ • Attende00 d three sales mission in each Tier 1 Market , t _ ,Ati.,... �. � to meet with product managers, give• agent , "" LL f. AMi trainings, and attend sales calls. • �: , ra HuNlitiv i • Attended two trade shows for a cumulative 102 � � one-on-one appointments. , , 4 � � et Est 11 VISIT HUNTINGTON BEACH TOURISM DEVELOPMENT FILM - 126 Film Inquiries • 111 Permitted Shoots �.)* NETFLIX prime video n stud os gte. =_ „�ev :::,::, NBC 12 VISIT HUNTINGTON BEACH VISITOR & PARTNER SERVICES QUICK HITS VISITO • $17,000+ in retail sales :- ti • 12,000+ inquiries 74w . , ,t, t • 26 walking tours A I \ r • 23 special events • 4 new visitor experiences • 3 active volunteers • 2 community giveback events PARTNER SERVICE . A VISIT N itiminON i • 2,000+ partner referrals . 4: 1 . 1* s°_____,A___ "_" • 400+ partner engagements '_ ., I 1'-, k _ illt C t • 8 partner events . • 263 attendees VISITOR INFORMATION , MU . „. .. r.au.. .. ter:. ,. 15 VISIT HUNTINGTON BEACH ADM INisirRATIoN AWARDS • FiredUp! Culture "Best Team Culture" Award (one of 30 organizations nationally) • A best places to work accolade to be revealed in early July • Destinations International DMAP with Distinction accreditation renewal (one of 20 organizations globally) PROGRAMS • Completed 2023-2026 Strategic Plan • Held successful HB Tourism Summit (HBTourismSummit.com) -µ: • Conducted senior team 360 surveys, followed by one-on-one executive coaching, and a full team culture survey and workshop with t , FiredUp! Culture ++ii 11rr • Clean annual audit with no significant findings IIII1� • Transitioned to cloud-based phone system and $ initiated transition to digital accounts payable - y process 16 V VISIT HUNTINGTON BEACH FIr 23.24 PROGRAM OF WORK ,.. , -,,,,...„.„,„ . ... ......... _ .. _MO . , _ ,, . - ,' fi. ..n ix. aA x: .....„' , .. .,, :,, , m1ntiuiii:i2 A•I i,i..,l.ili t, i stIll'AIIRA tee,. .. � r.+.... m . . ., _, . e a�,q s✓n r 17 VISIT HUNTINGTON BEACH FY 23-24 Program of Work tied to VHB 2023-2026 Strategic Plan Programs that increase the visibility of Huntington Beach and the Surf City Programs that help ensure that the places to eat, shop, play, and stay in USA® brand as the quintessential California beachside experience by Huntington Beach are enjoyed by residents and visitors alike, and that those strategically targeting key media, travel trade, meeting planners,and leisure experiences are fun, unique, accessible, memorable, and inspire repeat and business travel markets around the globe to increase, overnight visitation. visitation,visitor spend,and events/group meetings. • Develop outreach and education to enhance customer service for • Launch soft season campaign highlighting HB lifestyle pillars of all visitors including international and accessible communities. outdoors, wellness,family, active sports, dining, and shopping as micro-campaigns designed to encourage visitation and overnight • Engage in discovery research towards accessible certified stays. Leverage Visit CA's "CA Road Trips" "Kidafornia"and "Ultimate destination. Playground"themes. • Surveying key customer user groups to better understand ways to • Promote 2023 ISA World Para Surfing Championships(NOV 2023) improve the ability to increase the frequency of booking meetings and special events in Huntington Beach. • Issue an RFP for a creative agency of record. • Help implement pertinent destination improvements • Participate in two of VHB's largest trade shows (IMEX 2023 & IPW recommended by RHI 2024). • Launch Show Your HB Love 2024 campaign. • Leverage the World Cup and LA28 to expand global destination brand awareness and secure offsite activations. ha : e Programs that educate residents, visitors, local businesses,government Programs that ensure Visit Huntington Beach's spirit of service is operating at officials, and community stakeholders on the vital role of the travel & optimal efficiency and, as Huntington Beach's destination management tourism industry and provide a greater understanding of its impacts and organization, is consistently delivering on its Mission, Vision, and Brand benefits. Promise to visitors and residents. • Develop customer sentiment survey. • Seek HBTBID modification approval. • Develop annual Tourism 101 forum to help residents and businesses gain a greater understanding of the local tourism industry. 18 VISIT HUNTINGTON BEACH A s TI . MI 23/24 VHR MARKETING PROGRAM FY 2023/2024 JULY AUG SEPT OCT NOY DEC JAN FEB MAR APR MAY TUNE VHB MARKETING PROGRAM■■■,■■■IIIIIII■■■■■.■■■..NIN■■■■■.■■■■ _.-.__,___ ___111111111111111111111111111 VISIT HUNTINGTON BEACH CAMPAIGNS Soft Season Campaign f'a ,i -.. .. .i S . ' Show Your HR Love NTTW . VISIT CAUFORNIA PARTNERSHIP PROGRAMS F ' �� Expedia State Co-op . } _ . F Adara i TripAdvisor E-Newsletter CA Guide -....,-;.- INSPIRATION PROGRAMS Google Adwords I OTT Streaming Video i_ _ 1 1 Mobile Video .f...-- Cross Platform Display Uber Tracking Pixel _ ' t - Facebook Ads i Instagram Ads s Pinterest Ads Linkedln Ads ;, , I Industry Print Ads HB Visitor Guide IIII l IIIIII MEW. , �. . - -----=---� m :: ���b ,sue: e, ' KTLA Surf Report and Ad • 1 al IIIIIIIIIIIIII1111111111111111111111111111111111 CONVERSION PROGRAMS Expedia Campaign . YouTube Retargeting Device ID Retargeting _III� IIII III IIIIMIIIIIMIIII Mill ARES -- .1 _ IIIIIIIIIIIIIIIIIIII GROUP SALES PROGRAMS _ Northstar Meetings r 1 1 1 Smart Meetings ?API 4 ` Meetings today y Connect Meetir,Es Tradeshows Group Sales Newsletter � T p L _ SOOAL MEDIA COMMUNICATIONS Faceboak Twitter M I lnstagTwits ram vi ...._ _ 1 mmi . . Pinterest 1 _ , „ , „ ,,, i — _ Linkedln + .., YouTube r Blog Content Leisure Newsletter I _ ' —_ III' influencers 19 VISIT HUNTINGTON BEACH 23/24 VISIT HUNTINGTON REACH MARKETiNG MIX IPW 2024 Activation Agent Trainings Website Trade Shows STVR Program SEO/SEM Sales Missions Events Social Media FAMs Trails Social Media Ads Travel Trends Destination Accessibility Social Media WEBSITE & E-Newsletter Hotel Performance TOURISM SOCIAL MEDIA Influencers Consumer Sentiment DEVELOPMENT Video Geo-Location Tracking VR Content Airlift Reports Agency of Record Economic Impact RESEARCH , Media Buying Visit CA Co-ops p Spend Data Forecasting Advertising Reporting Blogs Itineraries E-Commerce Partnerships Local PUBLIC Broadcast National RELATIONS Photography International LEISURE Video Media Coverage MARKETING Events Editorial GROUP SALES [-Newsletter MARKETING PAID MARKETING MIX FAMs Trade Shows Media Missions Sales Missions • Visit Huntington Beach Campaigns Trade Shows FAMs • Visit CA Partnership Programs Crisis Management Social Media • Inspiration Programs Influencers E-Newsletter • Conversion Programs Pitching Stories Media Buying • Segmented Marketing Events • Group Sales Marketing Site Inspections 1' 20 VISIT HUNTINGTON BEACH r i ,..,,,,:, ilk - Ft) )1 n i (LI( Y IA\ I i I MARKETING i�— , , ' , - ' \r 1--�� i Li FY 23-24 Media Buy Campaign � � �' • November 2023 — April 2024 Flight / 1 • Laid Back Lux Traveler (age 38-57, $142K/year + HHI, No Kids) e • Active Family Traveler (age 30-39, $130K/ year + HHI; Kids) ~i. • Mid-Income Millennial (age 20-38, $114K/year + HH; No Kids) Targeting • Markets: Drive Markets; Flight Markets; Canada 1 - AV • Cultivate Surf City USA Brand r ' 'I • Trigger Active Consideration I. Messaging • Drive Marketing Development (micro campaigns). , 71 ..el • Display & Native Advertising ! • OTAs & Programmatic _ - • Device ID Retargeting • Social Media " ' Platforms • OTT Streaming Video - - i • Visit California Fall & Spring co-ops contributes a 50% match • Broadcast (KTLA Surf Report + 30 second on-air ad) ` 21 VISIT HUNTINGTON BEACH MARKETING • AGENCY OFRECORD • ANNUAL MARKETING CAMPAIGN • "CONTENT ENGINE"STRATEGY • VISIT CALIFORNIA FALL 2023 CO-OP MARKETIN � SIIRF CITY USA UNc1ERED FY 23 /21 • SURF CITY MARATHON • PACIFIC AIflSHOW • 2023 US OPEN OF SURFING • 2023 ISA PARA SURFING GAMES • SHOW YOUR HB LOVE 2024 • VISIT CALIFORNIA SPRING 2024 CO-OP PUBLIC RELATIONS • IPW2024 TOURISM DEVELOPMENT • IPW2024 • ACCESSIBLE TRAVEL 22 VISIT HUNTINGTON BEACH • • IMEX AMERICA •�► ' lit .I • PREFERRED PARTNERSHIPS 7 ,i , s • PRESTIGE GLOBAL ` -- 4 .. -t--...t.-.,r--,:,, 7,-*7,- .,..,-1i; 1E`.:.,:wry f w- MEETINGSOURCE _� f ? ,.# GROUP • HELMS BRISCOE • HPN GLOBAL : .: SALES • CONFERENCE DIRECT f4.. ter= ...... r • CALIFORNIA DMO ALLIANCE Flf 23/24 • IN—MARKET CLIENT EVENTS USA v " .,....c*. 1 s xaruvmm ytttrrs • HB COLLECTION BEACHWIDE FAM - A.$- ,, : '. . , #. IN CONJUNCTION WITH THE , { ; 4_ • 'f77. a , -'4;:' PACIFIC AIR SHOW r , °; 4 .., 23 VISIT HUNTINGTON BEACH NEW INITIATIVES. • TEXT-BASED VISITOR CHAT SERVICE • CUSTOMER SENTIMENT SURVEY • RETAIL SALES PLAN • ART WALKING TOUR • SUPPORT FOR IPW 2024: LOS ANGELES • TBD: MOBILE EVENT BOOTH CONTINUING PROGRAMS; • HISTORICAL WALKING TOURS • TEAM SURF CITY USA®VOLUNTEER PROGRAM • THRESHOLD 360 VIRTUAL TOURS • PARTNER EDUCATION SERIES • BARREL TRAIL • SCAVENGER HUNT 24 VISIT HUNTINGTON BEACH ADmiNisTiRitirl I FY 2023 - 2024 OPERATIONS • TBID modification • Expanded retail sales program • Office maintenance to improve facilities • Ensure HR policies and procedures remain competitive to retain staff ADVOCACY • Targeted marketing support for US Open of Surfing, Pacific Airshow, and ISA Para Surfing Championships • Support for community events and organizations, such as ISM, Chamber events including Economic Development Conference, Surfing Walk of Fame, and Pier Snowflakes I ; • Continued engagement with elected ri I representatives to keep the value of tourism in HB top of mind � _ _ -ter. �,.�....i.w.r:. .JY •.-...r- _,�.,,_ ".._ _ ,.,. 25 VISIT HUNTINGTON BEACH 41 • . .. . J.1. 4... ',a NJ 4'-4/,fit ''' .. • ' 14114 i• -,... •• :4.44.r • . . * 4! "it 4 i . 0 1 $ ,.. .• '''.4. -1t, .... ill t„„,7° "4"I . . : : ,! IgiMms *:.1: . 41 - •-•• AT-.... . , .. ri .,,, . :6 ***:6 6.1:6.1 I , 45'. .0Pr 1 • • ' paw I. " . P * 1 444 - ' • .4.4.,-; ......_ ____,..____ ,... ......„, , . . ... 'El'21IA L - —-- •*$ 4) 4 ' ,, 1 4 . .• . ' 4! I LI ... .... . *It ii g 4 • ----arar .- git r i y A. *. , - ....r 1 i , 4_.il. 11- ' • • 41. _ ^ 4- 47 ,,,.... , J a.. 4,...4, . „1 ' ' i 4 - '. .. 44 ti, ii • 110i; , . l', " •• loft z r„ .-..........m... -- -7,.., -1, - of ....._ 441 I 6 oa - -win LI, • -- ,.I' ' 1, ---......7.----.....:-.. -...-=.-.-_-__.-r-- r---- ' ..,•44 104 tii . .. , . ,------- .. . r 14 7 i '• . 1 .. . . . ... .... ..... .... . . . . :,: •.:: ::---- --*--' -- ''- , , r --- wrrvv=vsts .. • tis • . s ,.. ' I 7, '' Illbr ...J.— s., 1 Ai r • • 4 i,0 affitroo4 ' , .......... . 11, ,. ,... •' , lit 4 ir . ', a 1,-- I '&7.,s•,.tat, , ' , AV'''4 . '•..1.' . , A'''1 • s ' '', 1*' I:4111V* •',.k . • 4 - li .. . , -1-'-"- . , ,p ,1 • ,....„. 4, ... **..... ' 04° , , , :10111110102 . 1 11 '—"I ' 1,.'''''' ..j04:111:11111-. of P ., • lin 811111: IN. 1.7o• ,4 .• -:::---:- I ti../1/It, ..,„ 1 • , , ,.. ...a. - j! •,,,I.,j. . trtar-c '"*. 11, .. 4 de. • , 4 4‹ . _ t MY I • CO) #010 t ' . .• •• • = II, !, ..- • " • - C = = 0 NI = 6: .....4 *, ir • 17 = 00„107.6. i 011' *•,04,#.11 , Z"- C") = HBTBID Reporting Year FY 2023-24 Revenues Estimated TBID Assessments $7,090,560 Retail, Web Ad, Walking Tour Sales $21 ,220 Total Revenues* $7,111 ,780 Expenditures Tourism Enhancement Programs** $6,301 ,912 Administration $1 , 154,067 Contingency/Reserve $115,000 Total Expenses $7,570,979 Estimated Carry-over from Previous Fiscal Year $459,200 Estimated In-Kind Contributions $0 * Estimated TBID Assessments does not include the 1% admin fee retained by the City of HB. Total Revenues does not include a rollover of $459,200 from FY 2022-2023. These funds have been allocated to Tourism Enhancement Program projects for FY 2023-2024. 27 VISIT HUNTINGTON BEACH **The Tourism Enhancement Program sourced from the Visit Huntington Beach Master Development Plan will promote and provide activities and improvements to assessed lodging businesses through the implementation of two sub-programs: sales & marketing and visitor services enhancements. A summary of each sub-program is provided below: Sales& Marketing The sales and marketing program will promote assessed lodging businesses as tourist, meeting, and event destinations. The sales and marketing program will have a central theme of promoting the Huntington Beach destination brand as a desirable place for overnight visits. The program will have the goal of increasing overnight visitation and room night sales at assessed lodging businesses, and may include the following activities which are designed to drive overnight visitation and room sales to assessed lodging businesses: • Increased advertising and promotional programs in print, online, social media, and television targeted at potential visitors to drive overnight visitation and room sales; • Website enhancements and updates; • Strategic advertising and marketing agency support; • Contract with third party marketing and sales partners; • Public relations, sales blitzes, missions, and calls; • Familiarization tours targeting key decision makers; • Preparation and production of collateral promotional materials such as visitor guides, brochures, flyers, and maps; • Video development for destination experiences and visuals; • Attendance at professional industry conferences and affiliation events; • Lead generation activities designed to attract tourists, leisure visitors, and group events to Huntington Beach; • Partnerships with targeted special events that attract overnight visitors; and • Research designed to identify potential markets for increasing the customer base. Research is also used to convert visitor requests to actual travel, to identify the economic impact tourism has to Huntington Beach, and to maintain a Visitor Profile for use in marketing efforts. • Cooperation with local agencies and film commission programs that attract overnight visitors. Visitor Services Enhancements The Visitor Services Enhancements (VSE) program will provide funding for programs and initiatives based on criteria to be developed by VHB and reviewed and approved with the City. The focus for the VSE program will be on the entire destination brand footprint to ensure a consistent brand experience throughout Huntington Beach.VSE may include the following programs which are designed to drive overnight visitation and room sales to assessed lodging businesses: • Development of activities and/or products designed to keep visitors in the destination for an increased duration of time throughout the year. • Connectivity plan that links Pacific City, downtown HB, Hotels, the Strand, and adjacent visitor experiences. Support of a trolley or transportation program connecting hotels to downtown Huntington Beach, The Pier, or other attractions; and • Support of a long-term ambassador and/or security program with trained staff that supplement the current level of police presence to improve the overall destination experience and encourage overnight visitation or a fulltime dedicated police officer to ensure tourism safety; • Welcome center and kiosk improvements including new technology-driven visitor information enhancements; • Brand-centric visitor services trainin: •ro:ram for both •ublic and •rivate sector staff 28 VISIT HUNTINGTON BEACH HUNTINGTON BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT remmami .N The purpose of the HBTBID is to increase overnight room sales with targeted marketing and promotions. Funding is derived from assessments and revenues collected from all lodging businesses, existing and in the future, available for public occupancy located within the boundaries of the City of Huntington Beach. These boundaries will CITY OF HUNTINGTON BEACH not be changing. The current assessment rate is 4% of gross short-term room rental revenue which is separate from the 10%in Transient Occupancy Tax that the City collects. Assessments fund the marketing and sales promotion efforts to improve tourism and drive additional room nights to the lodging businesses. cgi•,h� Tourism enhancement programs include marketing and public relations, group sales, and enhancements for visitor services. The HBTBID was renewed in 2019 and runs through June 30, 2028. Visit Huntington Beach (VHB) is a non-profit 501(c)6 organization that serves as the HBTBID's Owners' Association. VHB consists of staff and board members dedicated to promoting tourism to Huntington Beach to increase overnight stays in Huntington Beach hotels. VHB is responsible for implementing the activities and services identified in the Management District Plan (MDP) and for submitting an annual report to the City Council for their approval. 29 VISIT HUNTINGTON BEACH ... :..,,: « ass. ... $ "�• k".l. x _ s .#A +. ,..r ..tag p ,, f U . . „ — ® • ��.. , AIM" .. + + W a i a • 1 a C , „. 4 • M ,i ` t�+" F . , y ...4;3o VISIT HUNTINGTON BEACH 05°222zzliN \\ °T I N G 7/) Approve the , ?:•'.�pRPORgTF�..� � Huntington Beach • = ___ __, ` ••,�6'� ‘ Tourism Business ,__-- -- _ -- , ;t,,�, ; ;_-_ s,��, �� Improvement District __ __ =� • % ( HBTBID) Fiscal Year —�„ 5__ _ _-__--,_--- ; �,�, Q �) ( FY) 2023-24 Annual .. , i----,„ ___ _, � a Report � ���tee • 17, 1909 � P •� `� orAr ' C°UNT\I .����„//// November 7, 2023 Background • HB Tourism Business Improvement District (HBTBID) I 0=� formed in 2014 pursuant to the CA Property and / / ° ° � .. � Business Improvement District Law of 1994 �_ 9 \ •• HBTBID purpose is to increase overnight room sales `9'� s • � $ with funding dedicated to marketing and public co UNT••-' P\, , ,/ I relations, group sales, and visitor services d'zinindrintiriv enhancements • Funding derived from assessments collected from VISIT lodging businesses operating within City boundaries H U N T I N GTO N • HBTBID was renewed in 2019 and runs through BEACH June 30, 2028 SURF CITY USA' • HBTBID's Owners' Association must prepare an Annual Report for Council approval 1,0 HBTBID GARDEP�GROVE FREEWAY �' GARDEN 'ROVE FREE 405 • Comprised of approx. 21 hotels/motels and 225 Short Term Rentals (STRs) \ :, • Current assessment rate is 4% of gross CITY HUNTING OONFBEACH short-term room rental revenue + • Boundary includes all lodging businesses, ` existing and in the future, available for public occupancy within the City Aq'co o 9y • Total assessments approximately y'y h%L $7 million for FY 23-24 • City collects assessments monthly from hotels/motels and quarterly from STRs ,,, Visit Huntington Beach (VHB • Visit Huntington Beach (VHB), a non-profit 501(c)6 organization, serves as the H BTBI D Owners' Association 2019-2028 , Consists of 14 full-time staff members • VISIT HUNTINGTON and 22 board members dedicated to BEACH promoting tourism to HB to increase overnight lodging stays ` met • Responsible for implementing the IL programs identified in the Management District Plan (MDP) and for submitting an .: annual report to the City Co u n c i I f or HUNTINGTON BEACH approval TOURISM BUSINESS IMPROVEMENT DISTRICT MANAGEMENT DISTRICT PLAN • Agreement between City and VHB to manage the HBTBID's funds and activities 1,2 FY 23 -24 Annual Report Per Streets and Highways Code §36650, Annual Report must contain : • Any proposed changes to boundaries/benefit VISIT HUNTINGTON BEACH zones/classifications; FY 23-24 ANNUAL EP T • Improvements/maintenance/activities for that FY; • Cost estimate of providing the • improvements/maintenance/activities for that FY; ' i • Method and basis of levying the assessment; 4,• • Estimated amount of any surplus/deficit from a previous FY; and, • Estimated contributions to be made from other sources. 113 FY 22 - Highlights23 yy =• Marketing Campaigns - : :- =t_. '. -- - . o #BeHere 3.0 . . = , , .. '��, �, •' 1. �� O 2022 WSL Vans US Open of Surfing ..... , M.4r i` ,. O 2022 ISA World Surfing Games : " �,,, ,., - - '�� • Launched redesigned website ` °$ ,r ,�f • Produced HB Tourism Summit {"' .Is .. • Hosted 16 journalists and 7 influencers ' • '" . , • Conducted 733 total travel agents w . r • Success of HB Collection Beachwides - , . � .�r _, _ 4: sue, aa- , , ...4 } ~� ,, . ak, # , 114 FY 23 -24 Work Program • Driving Global Brand Awareness - Increase visibility of HB/Surf City USA° brand by targeting key media, travel trade, meeting planners, and leisure/business travel markets to increase ,.,. overnight visitation, visitor spending, and events/group , . f ' meetings. . a-> 11 .44iitt • Enhancing Destination Stewardship - Ensure that HB places to u f °' r eat, shop, play, and stay are enjoyed and experiences are fun, r ° unique, accessible, memorable, and inspire repeat visitation. - I ,„ •, • Championing the Value of Tourism - Educate on the vital role of �` VISIT the travel & tourism industry and provide greater #, v 0 Digit understanding of its impacts and benefits. 1 t • Prioritizing Organizational Effectiveness and Culture - Ensure VHB's spirit of service is operating at optimal efficiency and consistently delivering on its Mission, Vision, and Brand Promise. 115 FY 2023 -24 Budget fi INCOM Estimated TBID Assessments $7,090,560 Retail, Web Ad, Walking Tour Sales $21,220 Total Revenues $7,111,780 Estimated Carry-over from Previous FY $459,200 TOTAL FUNDS AVAILABLE $7,570,980 EXPENDITUR Tourism Enhancement Programs (83%) $6,301,912 Administration (15%) $1,154,067 Contingency/Reserve (2%) $115,000 TOTAL EXPENDITURES $7,570,979 116 Expenditures Administration expenditures (15%) - Operational staffing costs, office costs, and other (insurance, legal, and accounting fees). $ ... . , 1 0 ,,.. Tourism Enhancement Programs (83%) - Variety of services/programs i and associated staff time through two sub-programs: t s • Sales & Marketing Promotes assessed lodging businesses as tourist, , b meeting, and event destinations with a central theme of HB . , , ..t . destination brand as a desirable place for overnight visits. Goals r include increasing overnight visitation and room night sales. • a, .'' lic--,1 ' . .. E k � • Visitor Services Enhancements (VSE) - Focus is on the entire of' r-- destination brand footprint to ensure a consistent brand experience '4- ilk , I 44,,,,, 4 _ ' throughout HB. Recommendation Approve the HBTBID Annual Report for FY 2023 -24 ......_.......,...„ ,,,.. ..,,,. „:„„ ...., f , , , , ,.„, , , , , ....,f x.p ., ea „ ,F id ., .q n $ - a[ B 414 •, • 4.t t. bx d ',, *xa ,,,,,,, . .0,0,, s 118 Questions ? s ,...„,„ ,.2,-�,,,f-',.—.., - 1 �t" /3 ]+++ j fp tf iI I�I if 1,tfi4 1 f 'i l't... t -tee*4 k1•�ljf r.. "�-1 "—.,y^" .✓ '" 411;L::.:— r ,++cam-.r 7 ¢ ti • • �� -•.. ."" :P."'4 fit% `'- `fir s .3Ir 1, . 119