Proposed San Francisco Tourism Improvement District

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Proposed San Francisco Tourism Improvement
District
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Why?

• Create sustainable revenue source for marketing
  and promoting San Francisco
• Ensure that the Citys convention facilities are
  upgraded, state of the art and expanded
• Remain competitive.

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Hotel Tax Collections vs SFCVB Allocation1999/00
to 2007/08 (in thousands)2007/08 based on
mid-year forecast
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Competition
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Competitive CVB Budgets2007/08 (in thousands)
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Hotel Tax Collection Allocations2007/08 Average
percentage - competitive set
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Sales and Marketing International

• Example international in-market spending

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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.

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Moscone Center Issues
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Customer Advisory Council
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San Francisco Tourism Improvement District
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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.

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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 Citys current SFCVB contribution to
  dedicate to Moscone upgrade and expansion.

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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.

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How well compareTotal tax charged on a hotel
guests room bill, in , using an example room
rate of 200
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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.

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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.

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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.

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Timeline
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Questions
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San Francisco Tourism Improvement District
Joe DAlessandro SAN FRANCISCO CONVENTION
VISITORS BUREAU Marco Li Mandri NEW CITY
AMERICA, INC.