Item G-3 Agenda Report — Beverly Hills City Council, June 18, 2024

AGENDA REPORT
Meeting Date: June 18, 2024
Item Number:

To: Honorable Mayor & City Council
From: Magdalena Davis, Community Outreach Manager
Subject: RECOMMENDATION OF THE BEVERLY HILLS CITY COUNCIL

LIAISON CVB/ MARKETING COMMITTEE REGARDING THE FISCAL
YEAR 2024/2025 WORK PLAN AND FUNDING REQUEST BY THE

BEVERLY HILLS CONFERENCE AND VISITORS BUREAU IN AN
AMOUNT NOT TO EXCEED $4,987,891; AND
REQUEST TO CARRYOVER $250,000 FROM FISCAL YEAR
2023/2024 TOURISM AND MARKETING BUDGET FUNDING FOR
PROGRAMMING & TI IMPROVEMENT IN FISCAL YEAR 2024/2025
Attachments: 1. Beverly Hills Conference and Visitors Bureau FY 24/25 Work Plan Proposal and Funding Request

2. CVB Liaison Report from June 13, 2024 (without attachments)

RECOMMENDATION
This item seeks City Council approval of the recommendation from the CVB/ Marketing Liaison Committee (Liaisons) supporting the Beverly Hills Conference and Visitors Bureau’s (CVB) proposed annual work plan and corresponding funding request in the amount of $4,987,891 for Fiscal Year 2023/2024 (FY 23/24), and the request to carry over $250,000 in unused funding from Fiscal Year 2022/2023 to use toward a sales mission, additional international marketing, and a tenant improvement (TI) in their office space in FY 24/25. This carryover funding request is separate from the $4,987,891 in funding for the CVB work plan.

INTRODUCTION
On June 13, 2024, the Liaisons, consisting of Mayor Friedman and Councilmember Wells, reviewed the CVB’s annual work plan and funding request for FY 24/25 as well as an update on the remaining marketing programs and initiatives for FY 23/24. Attachment 1 to this report is the proposed FY 24/25 work plan and funding request. Attachment 2 to this report provides Liaison report with the presentation on the remaining programs and initiatives for FY 23/24. During the meeting, the Liaisons supported the CVB’s proposed annual work plan and a corresponding funding request in the amount of $4,987,891 for

BEVERLW
HILLS
i
Meeting Date: June 18, 2024

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FY 24/25. Additionally, the Liaisons supported the CVB’s request to carryover $250,000 in unused funding from the CVB FY 23/24 work plan to use toward an additional sales mission in Miami, an international marketing plan centered around safety messaging, and a TI to their office space.

DISCUSSION
The CVB is contracted by the City to conduct a variety of tourism and marketing programs promoting Beverly Hills. The City funding is utilized to promote Beverly Hills domestically and worldwide as a stay, shop, and dine destination through a variety of marketing programs and events that build awareness and drive consumer revenue to the City as a whole. They consist of a staff, and a volunteer Board comprised of hotel General Managers, and local stakeholders. The items in the CVB FY 24/25 work plan support the goals and action items of the City’s overall priorities and Economic Sustainability Plan, including focusing heavily on brand awareness, safety and differentiating Beverly Hills destination from other cities to attract and bring travelers to Beverly Hills.

The main categories of work that the CVB focuses on are:

1. Marketing, which includes sales missions and destination programs

2. Domestic public relations, which in addition to PR firm, includes media missions

3. Meetings, Incentives, Conferences, and Exhibitions (MICE), focusing on events that target meeting and incentive planners, Milken support and other prestige partners

4. International Marketing, including leisure travel tradeshows for luxury destinations, and programs in the largest markets for Beverly Hills: the Middle East, United Kingdom, Australia and Mexico

5. Digital and Interactive programs, which include social media and website

6. Metrics and Data, such as geotracking, travel research Visa CVB’s Proposed FY 24/25 Work Plan
As travel patterns continue to emerge after the pandemic bounce-back there is a true demand both domestically and internationally that Beverly Hills and other destinations are benefiting from. To capitalize on that demand and ensure that Beverly Hills continues to be top of mind with our key markets, the CVB’s work plan focuses on attracting visitors to Beverly Hills with the following programs and initiatives:

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• Visit California media missions in San Francisco, New York, and Los Angeles Meetings, Incentives, Conferences, and Exhibitions (MICE) • Milken Conference support
• Financial & Insurance Conference Professionals (FICP) • Meeting Professionals International (MPI)
• Visit California Forum(s)
• Prestige Partners
• Roadshows in Midwest, Texas, Florida, and New York
• Society for Incentive Travel Agents (SITE)
• Amex GBT
• Maritz
• Northstar
• *New* Adding one additional SalesForce.com license
International Marketing
• Leisure Travel Trade Shows
o Worldwide Exhibition for Incentive Travel, Meetings & Events (IMEX) o International Luxury Travel Market (ILTM) Asia Pacific, Cannes • International PR & Travel Trade Representation
o Agency representatives from the Middle East, United Kingdom, Australia, Mexico
o *New* All agencies will lead discussions around safety in Beverly Hills, one of the outcomes of the Global Summit in FY 23/24
• In-Market Program: Virtuoso
o Australia Sales Mission and events
o Middle East Sales Mission and events
o Additional marketing around safety with carryover
Digital/Interactive
• Social media with vendor Bold LA
• Search Engine Optimization (SEO)
• Continuation of:
o Hotel re-marketing and hotel referrals due to their high ROI o Visitor email acquisition campaign to boost audience
• *New* Website backend update
• International ChatBot
Metrics/Research
• Smith Travel Research, which tracks destination hotel performance against competitors
• Visa – international and domestic credit card spend information • Datafy Geotracking which includes Mastercard and mobile phones • *New* Tourism Economy Symphony which uses all available data to create a dashboard that better define overall progress of trackable initiatives The funding request for the workplan above totals $4,987,891, with full details and percentage changes from the previous fiscal year in the fiscal impact section of the report. The Liaisons recommended this work plan to move forward with the above.

Carryover Funding Request from FY 23/24
Meeting Date: June 18, 2024

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Outside of the work plan and budget outlined above, the CVB requests to carryover FY 23/24 Work Plan funding of $250,000.

Of the remaining funds, $150,000 was intended for two domestic events in Miami and Dallas in FY 23/24, and would instead be put towards two items:
• $75,000 for a February 2025 Miami event to coincide with the Chamber’s Miami Business Mission
• $75,000 towards International Marketing for social media and traditional media Additionally, the remaining $100,000 in carryover funding is requested to be put towards a tenant improvement (TI) for the current CVB office space. A remodel has been explored with the City Architect in order to increase much-needed office space.

The tentative plan does not eliminate the Visitors Center but reconfigures the space to accommodate for more office and storage space. The CVB currently has $138,000 in their tenant improvement reserve budget. The additional $100,000 carryover was recommended by the Liaisons to be added to this reserve, and for the CVB to work with City-approved pre-qualified contractors to receive bids in order to budget costs properly.

Once bids are received, the CVB would return for review and approval of the total project and budget.

Per the CVB’s contract with the City, any unspent funding being requested for carryover must be brought to both the City Council Liaisons and the full City Council for approval.

Council may determine if the funding is permitted to be carried forward to use on new programming or initiatives. The Liaisons supported both the request from the CVB to use the $250,000 carryover towards a Miami mission event, international marketing with a message on safety, and the TI project reserve in FY 24/25.

FISCAL IMPACT
To carry out the proposed work plan for FY 24/25, the CVB requests $4,987,891 in Tourism and Marketing funding, as further detailed in Attachment 1 as shown below as shown below. The CVB is also requesting to carryover unused FY 23/24 funding of $250,000 from the Tourism and Marketing budget to FY 24/25 for support of an additional mission, international marketing, and to put towards a tenant improvement.

The following summary table gives the budget breakdown of each work plan category:

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Research $87,800 $74,152 -16%
Economic Impact Study
completed
Special
Programs $50,000 $50,000 0%
Operations $2,132,894 $2,239,554 5%
Added an additional part time
position to assist in the visitor
center, increased rent, COLA
increases, new accounting firm
and general inflation
Salaries, Taxes
and Benefits $1,582,944 $1,685,058 6%
New part time, COLA and merit,
bonuses for unfilled positions that
are now filled
Visitor Center $40,000 $25,000 -38%
Inventory now paid out of sales
revenue account
Total Cost of
Programming
Budget $4,809,410 $4,987,891 4%
Total Carryover
request $250,000 $250,000 0%
$75,000 for additional Sales
Mission to Miami; $75,000 for
more international marketing,
$100,000 for TI
The table below reflects the consideration approved by the City Council for the CVB adopted budget with the City since 2016, and the proposed request for FY 24/25 for the CVB’s work plan.

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The City has maintained a policy of funding its tourism and marketing programs from a specific allocation of the transient occupancy tax (“TOT”). The City collects a total of fourteen percent TOT based on gross room sales from the City’s hotels. One-seventh of the total TOT revenue has been the basis of calculating the funding for the Tourism and Marketing budget in Beverly Hills for approximately 27 years.

The Finance Department is currently forecasting a TOT revenue of $51,200,000 for FY24/25, as of the May 21, 2024, budget presentation to the City Council. Using the $51,200,000 estimate for TOT, the one-seventh amount would be $7,314,285. Staff anticipates this funding would be allocated for various programs and partner agreements as shown below:

Description of Program to be Funded from
Tourism & Marketing Budget (TOT)
Previous Budget
Allocation FY
23/24
Potential Budget
Allocation FY
24/25
Intellectual Property Legal Services $100,000 $100,000
Conference & Visitors Bureau
Requested funding for FY 24/25
Work Plan
$4,809,410 $4,987,891
Rodeo Drive Committee
Requested funding for FY 25/25 Work
Plan
$210,998 $197,998
Portion of the Beverly Hills Chamber of
Commerce Work Plan
Requested funding for FY 24/25, including
additional funding
$120,150 $173,245
Landscape Funding for Rodeo Drive
Estimate as actual may vary
$30,000 $30,000
Concours D'Elegance in 2025
Estimate based on prior year $255,000 $300,000
Contingency Funding for other Tourism &
Marketing Events (including the Holiday Lighting
Celebration and Rodeo Drive Holiday
Décor for Holidays 2025)
$1,331,585 $1,525,151
Total $6,857,143 $7,314,285
Keith Sterling,
Deputy City Manager
Approved By
Attachment 1

BEVERLY HILLS
Conference & Visitors Bureau
2015 - 2017 Strategic Plan
City Liaison Meeting
Fiscal Year 2024/2025
Program of Work
May 2024
L
Fiscal Year 24/25
Program of Work Highlights
New York Sales Mission
Budget
• FY 2024/25: $150,000
• Plans are to host a cocktail reception in
New York City in October to coincide with
Chamber of Commerce / City Mission.

Timing is tentative for week of October 21.
• Budget is slightly higher (vs. 2023 at
$146,500) due to inflation (costs in New
York are very high).
• Repeat meeting planner luncheon from
23/24 with hotel GMs and Directors of
Sales.
• Last year’s luncheon, produced at
minimum one business lead for 62 room
nights.
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Destination Marketing
Budget
• Total FY 24/25: $950,000
• Strategic Objective: Grow Demand and Maintain and
Grow a Strong Brand with all initiatives focusing on
Safety in Beverly Hills – separating Beverly Hills from the greater Los Angeles area.
• Description of tactics:
• Hotel focused campaign(s) in fall 2024 and spring
2025 (the majority of funds will be used for creative,
media and social media as in past years)
• Co-op programs with other destinations if available
(Visit California Expedia campaign as an example)
• Content campaigns that can be shared across multiple
channels that help shape perceptions of the city and
its offerings with a focus on how Beverly Hills is not
Los Angeles.

Domestic PR
Budget
• $132,320 which will be concentrated on
communicating safety in Beverly Hills and
relevance for all ages.
• Description:
• PR agency for 12 months
• Domestic media familiarization trips
to secure coverage in top
publications like those listed below.
• Visit California (VCA) Media
Missions in San Francisco, New
York and LA (if accepted).
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LEISURE
Robb Report
MICE
Budget for Meetings, Incentives, Conferences and Exhibitions (MICE) • $180,980 – focusing on events that target meeting and incentive planners. Safety messaging will be in all communications to these audiences. • Description:
• Milken Support
• Financial & Insurance Conference Professionals (FICP) • Meeting Professionals International (MPI)
• Visit California (VCA) Forum(s)
• Prestige Partners
• Roadshows in Midwest, Texas, FL and NY
• Society for Incentive Travel Agents (SITE)
• Amex GBT
• Maritz
• Northstar
• SalesForce.com licenses – we will be adding an additional license International Marketing
Highlights
Leisure Trade Shows
Budget
• $166,000
• Description:
• Worldwide Exhibition for Incentive Travel, Meetings & Events (IMEX)
• International Luxury Travel Market (ILTM) Asia/Pacific and Cannes
• Booth Storage
ILTM
International Representation
Budget
• $220,600
• Description:
• Middle East, Australia, Mexico and United Kingdom PR and Travel Trade Representation
• All agencies will lead discussions with safety in Beverly Hills (one of the outcomes of the Global Summit event in FY 23/24)
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Key International Initiatives
Budget
• In Market Programs: Virtuoso $50,000
• Australia Sales Mission and events: $50,000
• Middle East Sales Mission and events: $40,000
• Carryover will be used for additional marketing around safety. • Description:
• Continue Virtuoso relationship which provides access to the world’s leading travel agents with travel missions, trade shows, coverage in enewsletters and outreach to thousands of agents.
• Every other year, BHCVB goes in market with participating hotels for travel trade and media events (similar to New York but on a smaller scale). This year we will be focusing on the Middle East and Australia.
•

VIRTUOSO
Digital/Interactive Highlights
Digital/Interactive
Budget
• $475,145
• Item Descriptions:
• Social Media (BOLD LA)
• Search Engine Marketing and Optimization (SEM/SEO)
• Continuation of hotel re-marketing & hotel referrals (‘always on’ campaign); $7:1ROI • Continuation of Visitor email acquisition campaign to boost newsletter audience • Website backend update (new for this year @ $100,000) • International ChatBot
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4 Metrics/Research Highlights
Metrics/Research
Budget
• $74,152
• Description:
• Smith Travel Research, which tracks destination hotel performance against our competitive set
• Visa – international and domestic credit card spend information • Datafy geotracking which includes Mastercard data and tracks by mobile phone
• New for this year: Tourism Economics Symphony which uses all available information to create a dashboard which will help better define BHCVB the City of Beverly Hills overall progress as it relates to those initiatives which are trackable.

VisaVue®
Travel
Real-World Intelligence
For The Tourism Industry DATAFY
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@ TOURISM
'F) e ECONOMICS

AN OXFORD ECONOMICS COMPANY
BHCVB FY 2024/25 Budget Summary
Description 23/24 Budget 24/25 Budget
% Change 23/24
to 24/25 Description
Domestic Marketing $1,451,791 $1,483,300 2%
More money for Group Sales to drive more
revenue.

International Marketing $643,600 $616,100 -4% No Global Summit and different trade shows.

Interactive $365,450 $475,145 30% Website backend update.

Collateral $37,000 $24,640 -33%
Visitor Guide is only updated online and not in
print and is done internally.

Research $87,800 $74,152 -16% Economic Impact Study completed.

Special Programs $50,000 $50,000 0%
Operations, including Salaries, Taxes &
Benefits $2,132,894 $2,239,554 5%
Added an additional part time position to
assist in the visitor center, increased rent,
COLA increases, new accounting firm and
general inflation.

Salaries,Taxes and Benefits $1,582,944 $1,685,058 6%
New part time, COLA and merit, bonuses for
unfilled positions that are now filled.

Visitor Center $40,000 $25,000 -38%
Inventory now paid out of sales revenue
account.

Total Cost of Programming Budget $4,809,410 $4,987,891 4% Total Carryover request $250,000 $250,000 0%
$75,000 for additional Sales Mission to
Miami; $75,000 for more international
marketing, $100,000 for TI
Carryover Request
FY 23/24 Carryover Change Request
For this fiscal year we asked that $150,000 in funds remaining from the prior year be used for two domestic cocktail receptions: Miami and Dallas.

Due to unforeseen staff changes and to coincide with the Chamber’s Miami trip in FY 24/25, we ask that the $75,000 for Maimi be carried over to a Miami Cocktail Reception in FY 24/25. We ask that the other $75,000 be used for International Marketing consisting of Social and Traditional Media.

We also believe that we will have approximately $100,000 from this year, which we propose using toward TI for the current office space.

FY 22/23 Carryover Amendments for FY 23/24 and 23/24
Carryover
Original Amount Status
Miami Reception $75,000 Moved to FY 2024/25
Dallas Reception $75,000
To be used in FY 2024/25 for
International Marketing efforts for
social media/influencers.

Total 22/23 over to FY
24/25 $150,000
International Marketing and Miami
Cocktail party
Total Carryover from 23/24 $100,000
TI - toward refurbishment of the
office space.
9400 #102 Remodel
FY 24/25 Remodel
Prior to 2020, BHCVB had engaged a designer to increase office and storage space to better meet BHCVB’s needs in conjunction with the upcoming Lease Renewal, as the space hasn’t been touched.

Now that we have renewed our lease, we have begun exploring, with the city’s support, our current options to finish this project. In consultation with the City Architect we assume renovations will cost anywhere from $275 - $300 per square foot.
$138,000 is what we currently have in Tenant Improvement reserve, and we are asking to carry over an additional $100,000 to be used toward the project. We agree that this will not be enough, but we need to receive actual costs by competitively bidding the project.

We have asked the City Architect to provide us with a list of prequalified contractors who can be used in the bidding process.

We will come back to the Liaisons and Council when we have more information. •
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The Importance of
BHCVB Investment
Board Member Testimonials
BHCVB Board Member Antonio Bugarin
“The Beverly Hills Conference and Visitors Bureau is a
pivotal part of the success of our luxury hotels in the market. Together, we craft high-end experiences that are second to none for our visitors. Beverly Hills is a
destination in itself with exceptional experiences that are unrivaled in the [competitive landscape]. As a
market, we have an immense opportunity to increase
the volume and spending of visitors. To achieve this,
building awareness of the destination and luxury
experiences becomes vital. Our primary objective is to
position our destination as the top-of-mind choice for
tourists visiting the West Coast for the first time. [With the proper investment,] we are confident that our efforts will attract more visitors and increase spending,
propelling Beverly Hills to new heights of success.”
Antonio Bugarin
General Manager
Waldorf Astoria Beverly Hills
BHCVB Board Member Kathy Gohari
“Now more than ever we must share
with the world why Beverly Hills is THE
best and SAFEST place to visit! We all
have a role in this but ultimately it is the
CVB that can vastly represent us
around the globe. In order to compete
with other locations, we need a greater
investment to use wisely along with our
City partners on targeted groups and
strategies around the world to for
continuous growth in visitors and
ultimately a stronger TOT.”
Kathy Gohari
Director
Audemars Piguet
BHCVB Board Member Reed Kandalaft
“As we recently heard at the Global
Summit, we are competing with global
luxury destinations such as Paris and
London who have large budgets to
promote their destinations. Thus, it is
imperative that we unlock our potential
through strategic investments and
tailored marketing initiatives. As we all
fight to grow our share in the return of
the international traveler, the city’s
coordinated approach to reigniting our
brand has never been more important.”
Reed Kandalaft
Regional Vice President & General Manager
Beverly Wilshire, A Four Seasons Hotel
BHCVB Board Member John Scanlon
“We need to communicate all the great reasons why you must visit Beverly Hills more vigorously, more compellingly and continuously, which requires a greater investment. We need more people to visit, so we can grow occupancy and produce more TOT.”
John Scanlon, General Manager, The Beverly Hills Hotel
BHCVB Board Member Bill Wiley
“BHCVB is vital to the economic success of our city, playing a critical role in driving business to the economic engines of hospitality, retail, restaurants, health care and more keeping Beverly Hills top of mind in a very competitive market. While each individual hotel, retailer or restaurant markets itself, only the BHCVB promotes the Beverly Hills brand and all the other interesting things to do when visiting. Our competitors are always pursuing our guests and we must step up our investment to help bring back hotel occupancy and TOT to pre-COVID levels. Our studies have consistently verified that the Beverly Hills hotel guest is the biggest spender in our city. The investment in BHCVB has consistently generated ROI to the city’s tax base through multiple sources.” Bill Wiley, CPM
Director CBRE
Two Rodeo
BHCVB Board Member Frederic Zammour
“We need to invest heavily in the promotion of Beverly Hills to highlight its unparalleled luxury, cultural attractions and lifestyle, as other cities like Paris, London etc., continually invest in aggressive marketing strategies, maintaining a competitive edge against us.” Frederic Zammour, General Manager, L’Ermitage Beverly Hills

BEVERLY
Detailed Budget
BHCVB FY 2024/25 Budget Summary
Categories 24/25 Proposed Budget 2023/24 Budget 2022/23 Budget 2021/22 Budget

DOMESTIC MARKETING
A. Sales Missions
New York Sales Mission 150,000.00 146,500.00 130,000.00 105,000.00 Chicago/Miami 75,000.00 -
San Francisco/Dallas 75,000.00 -
Southern California Road Show
San Diego -
Subtotal 150,000.00 296,500.00 130,000.00 105,000.00
B. Domestic PR/ Media Missions
New York 4,680.00 4,500.00 3,675.00 3,500.00
Los Angeles 1,768.00 1,700.00 1,575.00 1,500.00
San Francisco 2,392.00 2,300.00 2,100.00 2,000.00
Events
Fams/PR 12,480.00 12,000.00 11,000.00 11,000.00
US Representation 111,000.00 111,000.00 100,800.00 96,000.00 Subtotal 132,320.00 131,500.00 119,150.00 114,000.00
C. Destination Marketing
Fall 475,000.00 475,000.00 665,000.00 650,000.00
Spring 475,000.00 475,000.00 665,000.00 650,000.00
950,000.00 950,000.00 1,330,000.00 1,300,000.00
Subtotal
D. MICE Marketing
salesforce 5,980.00 5,750.00 5,250.00 5,000.00
Meeting Planner Activities 175,000.00 168,840.00 143,000.00 70,000.00 Subtotal 180,980.00 174,590.00 148,250.00 75,000.00
F. Advocacy
TravPro 20,000.00
G. Partnership Marketing
Co-operative Programs 50,000.00 49,201.00 50,000.00 -
Subtotal
DOMESTIC MARKETING TOTAL 1,483,300.00 1,601,791.00 1,777,400.00 1,594,000.00 BHCVB FY 2024/25 International Cont’d
Categories 24/25 Proposed Budget 2023/24 Budget 2022/23 Budget 2021/22 Budget

INTERNATIONAL MARKETING
A. Sales Mission (Visit CA/ LA Tourism/BHCVB)
Australia/NZ 50,000.00 35,000.00
Mexico 7,000.00
Canada 5,000.00 3,500.00 10,000.00
Japan/Korea
UK 10,000.00 5,000.00 10,000.00
VCA Luxury Forum 4,500.00 4,500.00 5,500.00
Int'l Fams (trade) 18,000.00 18,000.00 12,000.00 10,000.00 Subtotal 87,500.00 31,000.00 62,500.00 27,000.00
B. Trade Shows - Pow Wow, ITB, WTM, ILTM, MPI
Booth Costs 6,000.00 30,000.00 5,670.00 5,400.00
World Travel Market
Luxperience
Registration/ Expenses
Brand USA Travel Week 15,000.00
IMEX Las Vegas 65,000.00 60,000.00 55,000.00 24,600.00
IPW 50,000.00
PROUD
ILTM Asia 35,000.00 40,000.00
ILTM America 18,000.00 20,000.00
ILTM Europe 60,000.00 50,000.00 30,000.00
Subtotal 166,000.00 230,000.00 123,670.00 50,000.00
C. Media - Missions & Fams
Fams (media) 20,000.00 20,000.00 15,000.00 15,000.00
Subtotal 20,000.00 20,000.00 15,000.00 15,000.00
I
BHCVB FY 2024/25 Budget Summary
Categories 24/25 Proposed Budget 2023/24 Budget 2022/23 Budget 2021/22 Budget D. In-Country Representation
India
GCC 45,000.00 45,000.00 45,000.00 17,450.00
China
UK 60,000.00 60,000.00 60,000.00 28,000.00
Mexico 57,600.00 57,600.00 40,000.00
Europe
South East Asia
Australia 60,000.00 60,000.00 60,000.00 27,050.00
Subtotal 222,600.00 222,600.00 205,000.00 72,500.00
E. Bus. Dev Emerging Mkts
India
Japan/MX
China Bus. Dev
Canada 10,000.00
Mexico 30,000.00 30,000.00
GCC 40,000.00 20,000.00 30,000.00 40,000.00
Subtotal 70,000.00 50,000.00 30,000.00 50,000.00
F. Global Summit
40,000.00
G. Incentive Programs
Tour Bus/Operator/ Guerilla Mktng 1,000.00
Subtotal 1,000.00
G. In Market Programs
Virtuoso 50,000.00 50,000.00
Subtotal 50,000.00 50,000.00
H. International Contingency
Int'l Contingency 25,000.00
Subtotal
INTERNATIONAL MARKETING TOTAL 616,100.00 643,600.00 461,170.00 215,500.00 I
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BHCVB FY 2024/25 Budget Summary

INTERACTIVE
A. Content Strategy/ Site Refresh
Crowdriff 23,153.00 22,050.00 21,000.00
Content 8,000.00 24,950.00 25,000.00
Social Services 116,580.00 85,000.00 85,000.00
Subtotal 147,733.00 132,000.00 131,000.00
B. eCommerce
Shopify 5,720.00 5,500.00 5,250.00
Subtotal 5,720.00 5,500.00 5,250.00
C. International
China Website
Digital Activities
US News
Subtotal
D. SEM/ SEO
SEM International
SEM Domestic 100,000.00 100,000.00 100,000.00
SEO Domestic 20,796.00 21,000.00 21,000.00
Subtotal 120,796.00 121,000.00 121,000.00
F. Domestic Website
Retargeting 48,000.00 48,000.00 42,000.00
Maintenance 15,420.00 16,500.00 16,189.95
Site Updates 100,000.00 5,000.00
676.00 650.00 643.65
Subtotal 164,096.00 70,150.00 58,833.60
G. Database/Email
Maintenance/Deployment 36,800.00 36,800.00 11,550.00
Subtotal 36,800.00 36,800.00 11,550.00
INTERACTIVE TOTAL 475,145.00 365,450.00 327,633.60
Categories 24/25 Proposed Budget 2023/24 Budget 2022/23 Budget 2021/22 Budget I
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BHCVB FY 2024/25 Budget Summary
Categories 24/25 Proposed Budget 2023/24 Budget 2022/23 Budget 2021/22 Budget

COLLATERAL STRATEGY
Revised visitor guide 8,000.00 21,000.00 21,000.00 20,000.00 Infox distribution 3,000.00
Premiums/ Giveaways (VIPs, fams, Sales Missions,
Int'l Offices) 16,640.00 16,000.00 15,750.00 15,000.00
COLLATERAL STRATEGY TOTAL 24,640.00 37,000.00 36,750.00 38,000.00

7. SPECIAL PROGRAMS
A. Adhoc,/City/ Board Requests/ Partnerships, etc.

City Requests, adhoc programs from stakeholders,
Board Requests 50,000.00 50,000.00 50,000.00 50,000.00
Subtotal
SPECIAL PROGRAMS TOTAL 50,000.00 50,000.00 50,000.00 50,000.00

8. RESEARCH
Visa Vue 9,152.00 8,800.00 8,000.00 6,000.00
STR 12,000.00 11,000.00 7,350.00 7,000.00
Cision 9,000.00
Master Plan 40,000.00
Economic Impact Study 45,000.00 32,000.00
Tracking (Datafy and Symphony) 53,000.00 23,000.00 23,000.00 RESEARCH TOTAL 74,152.00 87,800.00 70,350.00 62,000.00
MARKETING & TOURISM TOTAL 2,723,337.00 2,785,641.00 2,723,303.60 2,219,172.00 BHCVB FY 2024/25 Budget Summary
Categories 24/25 Proposed Budget 2023/24 Budget 2022/23 Budget 2021/22 Budget

VISITOR SERVICES
Visitor Staff
Merchandising/ Display (artwork, costumes, signage) 10,000.00 25,000.00 20,000.00 20,000.00 Collateral (tips, universal brochures) 5,000.00 5,000.00 10,000.00 20,000.00 Communications (advertising/incentives) 10,000.00 10,000.00 10,000.00 Subtotal 25,000.00 40,000.00 40,000.00 40,000.00

VISITOR EXPERIENCE TOTAL
VISITOR SERVICES TOTAL 25,000.00 40,000.00 40,000.00 40,000.00

12. FIXED COSTS
A. Salaries, Taxes, Benefits
Salaries 1,274,291.97 1,204,530.67 1,045,019.10 752,052.39 P/T Salary 63,520.00 38,520.00 35,617.44
Taxes 108,543.00 105,449.80 92,146.76 59,476.29
Benefits 238,704.00 234,444.00 211,848.48 137,383.68
Subtotal 1,685,058.97 1,582,944.47 1,349,014.34 984,529.80 B. Rent
9400 S. Santa Monica Blvd ( City of BH) 201,364.64 194,554.00 174,400.28 141,580.00 Subtotal r-201,364.64 --194,554.00 --174,400.28 -141,580.00 - BHCVB FY 2024/25 Budget Summary
Categories 24/25 Proposed Budget 2023/24 Budget 2022/23 Budget 2021/22 Budget C. Telephone/ Lease
(phone lines, repairs, etc.) 20,000.00 19,183.00 18,270.00 17,400.00 voice/data reimbursement -
Tel. Main./Repairs -
Subtotal 20,000.00 19,183.00 18,270.00 17,400.00
D. Utilities (City)
Janitorial 7,560.00 7,200.00
Electricity (SoCal Edison) 7,429.97 7,144.20 6,804.00 6,480.00 Heat Pumps -
Maintenance -
Alarm System - ADT 1,507.83 1,449.84 1,380.80 1,315.05
HVAC 1,638.00 1,575.00 1,500.00 -
Subtotal 10,575.80 10,169.04 17,244.80 14,995.05
E. Equip Usage, Copier. Printers
B&W/ color copies 2,288.00 2,200.00 1,047.38 997.50
Subtotal 2,288.00 2,200.00 1,047.38 997.50
F. Computer Services/Maintenance
**services/ maintenance 17,529.22 16,855.02 16,052.40 15,288.00 Subtotal 17,529.22 16,855.02 16,052.40 15,288.00
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BHCVB FY 2024/25 Budget Summary
Categories 24/25 Proposed Budget 2023/24 Budget 2022/23 Budget 2021/22 Budget G. Postage/ Delivery
postage 1,500.00 1,500.00 471.87 449.40
Subtotal 1,500.00 1,500.00 471.87 449.40
H. Prof Dev/ Training (7,500)
Training 10,000.00 10,000.00 10,000.00 10,000.00
Conference 17,000.00 17,000.00 15,000.00 10,000.00
Subtotal 27,000.00 27,000.00 25,000.00 20,000.00
I. Dues
WACVB 1,719.90 1,653.75 1,580.12 1,504.88
BH Chamber 873.60 840.00 804.80 766.48
CalTravel 2,070.64 1,991.00 1,900.00 1,159.04
US Travel Assoc. 4,000.00 27,500.00 2,102.89 2,002.75
MPI - 1,100.00 532.48
LA Tourism 1,092.00 1,050.00 1,000.00
SITE 500.00
Dest Reps 500.00
Prost 850.00 -
Destinations International 8,026.20 7,717.50 7,350.00 7,000.00 Subtotal 18,632.34 40,752.25 16,837.82 14,901.67
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BHCVB FY 2024/25 Budget Summary
Categories 24/25 Proposed Budget 2023/24 Budget 2022/23 Budget 2021/22 Budget K. Community Relations/ Corp Exp
Staff Expenses (2800)
Birthdays 343.20 330.00 300.00 400.00
Holidays 1,872.00 1,800.00 1,500.00 1,000.00
Team Building 10,000.00 10,000.00 -
Corp Expenses - -
Remote worker travel 10,000.00 10,000.00 $10,000
Corp Breakfast/Luncheons/Dinners & Expenses /
Business Mtgs 5,500.00 5,460.00 5,460.00 5,460.00
Subtotal 27,715.20 27,590.00 17,260.00 6,860.00
L. Professional Services
TriNet Service fee (payroll, hr., 401k) 31,355.28 29,304.00 25,000.00 33,299.28 Legal Fees 7,000.00 5,200.00 5,200.00 5,200.00
Outside Accounting Services 80,000.00 75,000.00 60,000.00 48,000.00 CA SUI Adm. Fee (Trinet) -
Subtotal 118,355.28 109,504.00 90,200.00 86,499.28
M. Temporary Services ($2k)
Project Assistance 1,000.00 -
Subtotal 1,000.00 -
N. Insurance
E&O 3,913.54 3,763.02 3,446.10 3,282.00
Chubb Foreign Policy 4,607.53 4,430.32 3,852.45 3,669.00 Travelers (D&O) 6,000.00 4,682.19 3,897.56 3,711.96
TriNet Workers Comp 11,320.63 10,885.22 9,465.41 9,014.68 Cyber 3,744.00 3,600.00
The Hartford (Employer Liab & Casualty) 6,073.05 5,839.47 5,077.80 4,836.00 Subtotal 35,658.75 33,200.22 25,739.32 24,513.64
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BHCVB FY 2024/25 Budget Summary
Categories 24/25 Proposed Budget 2023/24 Budget 2022/23 Budget 2021/22 Budget O. Audit
Audit fee 14,560.00 14,000.00 27,500.00 25,000.00
Subtotal 14,560.00 14,000.00 27,500.00 25,000.00
P. Office Supplies
CVB office supplies 15,600.00 15,000.00 15,000.00 13,227.24 QuickBooks Check Stock 329.80
Subtotal 15,600.00 15,000.00 15,000.00 13,557.04
Q. Contingency ($4k) 5,000.00 4,970.00 5,000.00 5,000.00 -
Subtotal 5,000.00 4,970.00 5,000.00 5,000.00
R. Board of Directors
Board meeting costs 2,000.00 10,000.00 5,000.00 5,000.00 Subtotal 2,000.00 10,000.00 5,000.00 5,000.00
S. Taxes
Tax filing service 3,016.00 2,900.00 5,500.00 5,000.00
Property Taxes (supplemental & annual) 14,165.76 13,888.00 12,883.83 12,724.77 Board of Equalization 50.00 50.00 50.00
Possessory Interest Tax (LA County) 3,200.00 3,200.00
QuickBooks 1099 Preparation Fee 125.11 120.30 114.57 109.12 Subtotal 17,306.87 16,958.30 21,748.41 21,083.89
BHCVB FY 2024/25 Budget Summary
Categories 24/25 Proposed Budget 2023/24 Budget 2022/23 Budget 2021/22 Budget T. License & Permits
Franchise Tax Board 10.00 10.00
City of Beverly Hills - Business Tax -
Misc. permits -
QuickBooks Online Software License 2,246.40 2,160.00 1,870.00 1,700.00 UK Media License 2,000.00 1,300.00
Subtotal 2,246.40 2,160.00 3,880.00 3,010.00
V. Fees & Charges
Bank Charges 2,603.21 2,503.09 2,500.00 2,500.09
Subtotal 2,603.21 2,503.09 2,500.00 2,500.09
FIXED COSTS TOTAL 2,239,554.69 2,139,894.67 1,833,166.61 1,403,165.36 TOTAL CASH BUDGET CARRYOVER 4,987,891.69 4,965,535.67 4,561,470.21 3,662,337.36 Without Carryover in budget N/A 4,809,410.00 4,411,470.00 (17,347.36) 4% 9% 25%
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Thank You
Attachment 2

CITY OF BEVERLY HILLS

POLICY AND MANAGEMENT

MEMORANDUM
TO: Beverly Hills City Council Liaison / CVB/Marketing Committee Meeting FROM: Magdalena Davis, Community Outreach Manager
DATE: June 13, 2024
SUBJECT: Review of Fiscal Year 2024-2025 Workplan and Funding Request for the Beverly Hills Conference and Visitors Bureau (CVB)
ATTACHMENT: 1. Beverly Hills Conference and Visitors Bureau FY 24/25 Workplan Presentation

INTRODUCTION
This item provides the City Council CVB / Marketing Committee Liaisons Mayor Friedman and Councilmember Wells (Liaisons) with an overview of the Beverly Hills Conference and Visitors Bureau’s (CVB) proposed annual work plan and corresponding funding request in the amount of $4,987,891 for Fiscal Year 2024/2025 (FY 24/25), and the request to carry over $250,000 in unused funding from Fiscal Year 2023/2024 to use toward a sales mission, additional international marketing, and a tenant improvement (TI) in their office space in FY 24/25. This carryover funding request is separate from the $4,987,891 in funding for the CVB work plan.

DISCUSSION
The CVB is contracted by the City to conduct a variety of tourism and marketing programs promoting Beverly Hills. They receive City funding to promote Beverly Hills worldwide and domestically as a stay, shop, and dine destination through marketing programs and events that build awareness and drive consumer revenue to the City. The Liaisons are requested to review the CVB’s annual work plan and funding request in the amount of $4,987,891 for FY 24/25.

Attachment 1 to this report is the proposed FY 24/25 work plan and funding request.

Additionally, the Liaisons are requested to review the CVB’s request to carry over $250,000 in unused funding from the CVB FY 23/24 work plan to use toward an additional sales mission in Miami, additional international marketing, and a tenant improvement to office space.

Per their agreement with the City, the CVB provides quarterly updates on their work plan progress. The update on the remaining marketing programs and initiatives for FY 23/24 is presented in a separate report in this Liaison meeting packet, however, the carryover request is included for review here, as it would be utilized in FY 24/25.

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The main categories of work that the CVB focuses on are:

1. Marketing, which includes sales missions and destination programs

2. Domestic public relations, which in addition to a PR firm, includes media missions

3. Meetings, Incentives, Conferences, and Exhibitions (MICE), focusing on events that target meeting and incentive planners, Milken support and other prestige partners

4. International Marketing, including leisure travel tradeshows for luxury destinations, and programs in the largest markets for Beverly Hills: the Middle East, United Kingdom, Australia, and Mexico

5. Digital and Interactive programs, which include social media and website

6. Metrics and Data, such as geotracking, travel research, and partnerships with Visa CVB’s Proposed FY 24/25 Work Plan
As travel patterns continue to emerge after the pandemic bounce-back there is a true demand both domestically and internationally that Beverly Hills and other destinations are benefiting from.

To capitalize on that demand and ensure that Beverly Hills continues to be top of mind with our key markets, the CVB’s work plan focuses on attracting visitors to Beverly Hills with the following programs and initiatives:

Marketing
• New York Sales Mission
• *New* Miami Sales Mission (with carryover funding)
• Destination Marketing campaign that focuses on safety in Beverly Hills and separating Beverly Hills from the greater Los Angeles area
o Hotel-Focused Campaigns in Fall 2024 and Spring 2025
o Co-op Programs with other Destinations, such as Visit California Expedia campaign o Content campaigns that utilize creative, media and social media to help shape perceptions of the City
Domestic Public Relations
• PR agency for 12 months
• *New*: A concentration on communicating safety and relevance of Beverly Hills for all ages • Domestic media familiarization trips to secure coverage in top publications (Travel + Leisure, Conde Nast, Robb Report)
• Visit California media missions in San Francisco, New York, and Los Angeles Meetings, Incentives, Conferences, and Exhibitions (MICE) • Milken Conference support
• Financial & Insurance Conference Professionals (FICP) • Meeting Professionals International (MPI)
• Visit California Forum(s)
• Prestige Partners
• Roadshows in Midwest, Texas, Florida, and New York
• Society for Incentive Travel Agents (SITE)
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• Amex GBT
• Maritz
• Northstar
• *New* Adding one additional SalesForce.com license
International Marketing
• Leisure Travel Trade Shows
o Worldwide Exhibition for Incentive Travel, Meetings & Events (IMEX) o International Luxury Travel Market (ILTM) Asia Pacific, Cannes • International PR & Travel Trade Representation
o Agency representatives from the Middle East, United Kingdom, Australia, Mexico o *New* All agencies will lead discussions around safety in Beverly Hills, one of the outcomes of the Global Summit in FY 23/24
• In-Market Program: Virtuoso
o Australia Sales Mission and events
o Middle East Sales Mission and events
o Additional marketing around safety with any carryover Digital/Interactive
• Social media with vendor Bold LA
• Search Engine Optimization (SEO)
• Continuation of:
o Hotel re-marketing and hotel referrals due to their high ROI o Visitor email acquisition campaign to boost audience
• *New* Website backend update
• International ChatBot
Metrics/Research
• Smith Travel Research, which tracks destination hotel performance against competitors • Visa – international and domestic credit card spend information • Datafy Geotracking which includes Mastercard and mobile phones • *New* Tourism Economy Symphony which uses all available data to create a dashboard that better define overall progress of trackable initiatives The funding request for the workplan above totals $4,987,891, with full details and percentage changes from the previous fiscal year in the fiscal impact section of the report (Attachment 1).

The Liaisons are requested to review and provide recommendations for the work plan as presented.

Carryover Funding Request from FY 23/24
Outside of the work plan and budget outlined above, the CVB requests to carry over FY 23/24 Work Plan funding of $250,000. Of the remaining funds, $150,000 was intended for two domestic events in Miami and Dallas in FY 23/24, and would instead be put towards two items:

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• $75,000 for a February 2025 Miami travel event to coincide with the Chamber’s Miami Business Mission (to be equitable with the New York mission) • $75,000 towards International Marketing for social media and traditional media Additionally, the remaining $100,000 in carryover funding is requested to be put towards a tenant improvement (TI) for the current CVB office space. A remodel has been explored with the City Architect in order to increase much-needed office space.

The tentative plan does not eliminate the Visitors Center but reconfigures the space to accommodate more office and storage space. The CVB currently has $138,000 in their tenant improvement reserve budget, and the additional $100,000 carryover is requested to be reviewed by the Liaisons. Should the Liaisons recommend this carryover to move forward for approval, the CVB plans to work with the City Architect and a list of prequalified contractors to receive bids in order to budget costs properly. Once bids are received, the CVB would return for Liaison review and Council approval of the total project and budget.

Per the CVB’s contract with the City, any unspent funding being requested for carryover must be brought to both the City Council Liaisons and the full City Council for approval. The Liaisons and City Council may determine if the funding must be returned to the City, used to offset the upcoming Fiscal Year request, or is permitted to be carried forward to use on new programming or initiatives. Liaison review is requested for the CVB to use the $250,000 carryover towards a Miami mission event, and international marketing, and the TI project reserve in FY 24/25.

FISCAL IMPACT
To carry out the proposed work plan for FY 24/25, the CVB requests $4,987,891 in Tourism and Marketing funding, as further detailed in Attachment 1 and shown below. The CVB is also requesting to carryover unused FY 23/24 funding of $250,000 from the Tourism and Marketing budget to FY 24/25 for support of an additional mission, international marketing, and to put towards a tenant improvement. The following executive summary table gives the budget breakdown of each category of the workplan:

Work Plan
Item
FY 23/24
Budget
FY 24/25
Budget
% Change
23/24 to
24/25
Description of Change
Domestic
Marketing $1,451,791 $1,483,300 2%
More money for Group Sales to
drive more revenue
International
Marketing $643,600 $616,100 -4%
No Global Summit and different
trade shows
Interactive $365,450 $475,145 30% Website backend update Collateral $37,000 $24,640 -33%
Visitor Guide only updated
internally, online
PAGE 5
Research $87,800 $74,152 -16%
Economic Impact Study
completed
Special
Programs $50,000 $50,000 0%
Operations $2,132,894 $2,239,554 5%
Added an additional part time
position to assist in the visitor
center, increased rent, COLA
increases, new accounting firm
and general inflation
Salaries,
Taxes and
Benefits $1,582,944 $1,685,058 6%
New part time, COLA and merit,
bonuses for unfilled positions
that are now filled
Visitor Center $40,000 $25,000 -38%
Inventory now paid out of sales
revenue account
Total Cost of
Programming
Budget $4,809,410 $4,987,891 4%
Total Carryover
request $250,000 $250,000 0%
$75,000 for additional Sales
Mission to Miami; $75,000 for
more international marketing,
$100,000 for TI
The table below reflects the consideration approved by the City Council for the CVB adopted budget with the City since 2016, and the proposed request for FY 24/25 for the CVB’s work plan.

CVB Funding Agreements FY 2016-2017 through FY 2023-2024 Year Funding
FY 16/17 Adopted Budget $3,829,202
FY 17/18 Adopted Budget $6,525,479 total
$5,303,733 without extension*
FY 18/19 Adopted Budget $3,880,505
$5,102,251 with extension**
FY 19/20 Adopted Budget $4,557,523
FY 20/21 Adopted Budget $2,702,336
FY 21/22 Adopted Budget $3,430,990
FY 22/23 Adopted Budget $4,261,470
FY 23/24 Adopted Budget $4,809,410
FY 24/25 Proposed Budget $4,987,891
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*Funding from FY 17/18 was extended to September to cover Summer BOLD **Q1 Funding for FY 18/19 in the amount of $1,221,746 was covered in the extension from FY 17/18 The City has maintained a policy of funding its tourism and marketing programs from a specific allocation of the transient occupancy tax (“TOT”). The City collects a total of fourteen percent TOT based on gross room sales from the City’s hotels. One-seventh of the total TOT revenue has been the basis of calculating the funding for the Tourism and Marketing budget in Beverly Hills for approximately 26 years.

The Finance Department is currently forecasting TOT revenue of $51,200,000 for FY24/25, as of the May 21, 2024, budget presentation to the City Council. Using the $51,200,000 estimate for TOT, the one-seventh amount would be $7,314,285. Staff anticipates this funding would be allocated for various programs and partner agreements as shown below:

Description of Program to be Funded from
Tourism & Marketing Budget (TOT)
Potential Budget
Allocation
FY 24/25
Previous Budget
Allocation
FY 23/24
Intellectual Property Legal Services $100,000 $100,000
Conference & Visitors Bureau
Requested funding for FY 24/25
Work Plan
$4,987,891 $4,809,410
Rodeo Drive Committee
Requested funding for FY 23/24 Work
Plan
$197,998 $210,998
Portion of the Beverly Hills Chamber of Commerce
Work Plan
Requested funding for FY 24/25
$120,000 $120,150
Landscape Funding for Rodeo Drive
Estimate as actual may vary $30,000 $30,000
Concours D'Elegance in 2025
Estimate based on prior year $300,000 $255,000
Contingency Funding for other Tourism & Marketing
Events (including Holiday Lighting Celebration and
Rodeo Drive Holiday Décor for Holidays 2025)
$1,578,396 $1,331,585
Total $7,314,285 $6,857,143

RECOMMENDATION
Staff recommends the Liaison Committee review and provide recommendations for the Beverly Hills Conference and Visitors Bureau’s proposed annual work plan and corresponding funding request in the amount of $4,987,891 for FY 24/25, and the request to carry over $250,000 in unused funding from FY 23/24 to use toward a sales mission, additional international marketing, and a tenant improvement in their office space in FY 24/25.

Beverly Hills City CouncilJune 18, 2024

Beverly Hills City Council
June 18, 2024