1 STAFF REPORT
DATE: December 6, 2022
TO: Justin Hess, City Manager
FROM: Patrick Prescott, Community Development Department Director VIA: Simone McFarland, Assistant Community Development Director BY: Mary Hamzoian, Economic Development Manager
SUBJECT: Approval of the Burbank Hospitality Association Fiscal Year 2022/2023 Annual Report
RECOMMENDATION
Approve the Fiscal Year (FY) 2022/2023 Burbank Hospitality Association (BHA) Annual Report pursuant to Section 36650 of the California Street and Highways Code.
BACKGROUND
The Burbank Tourism Business Improvement District ( TBID) was formed as a self - imposed, special benefit assessment distric t funded by a 1% assessment on overnight hotel room stays. Separate from the City’s Transient Occupancy Tax (TOT) which goes directly to the City’s General Fund, the TBID utilizes funds collected from the 1% assessment to boost hotel occupancy by marketing and promoting Burbank as a domestic, national, and international tourist destination, resulting in increased hotel room occupancy, Sales Tax revenue, Transient Parking Tax (TPT), and TOT.
City Council approved the TBID for a five-year term on September 20, 2011, and the TBID was renewed in 2016 for an additional ten-year term. For the past eleven years, the TBID has provided a stable funding mechanism that supports the hospitality industry including hotels, attractions, transportation, restaurants, and retailers.
The TBID is managed by the BHA, a non-profit corporation. The BHA, also known as Visit Burbank, is an example of a successful public/private partnership with the City. Economic Development manages the TBID by developing strategies and initiatives to enhanc e tourism attraction and spending in Burbank. The main areas of focus are sales, marketing, and destination development . The following strategies are used to enhance tourism in Burbank:
COMMUNITY
DEVELOPMENT
2 • Promote Burbank as a leading regional , national, and international tourist destination.
• Brand Burbank as a desirable meeting and convention destination. • Attend trade shows to increase sales through the group travel market. • Leverage collaborations through partnerships with Warner Bros . Studio Tour Hollywood, Universal Studios Hollywood, and the Hollywood Burbank Airport. • Develop and launch destination development projects that enhance the visitor experience.
Leisure & Hospitality Industry Post-Pandemic
Burbank’s Leisure and Hospitality industry has taken the longest to bounce back from the COVID-19 Pandemic (Pandemic). In April of 2020, occupancy levels were at 20%, the lowest they have ever been. However, in 2021 and more recently in 2022, the industry is on a growth trajectory. In September 2022, hotel occupancy in Burbank was at 78%, this figure was greater than September 2021 which was at 72.8% and just shy of the pre- Pandemic figure of 80% in September 2019. Additionally, an Economic Impact of Visitors in Burbank 2021 Report commissioned by Economic Development staff showed that 2.8 million visitors or approximately 7,700 visitors a day came to Burbank in 2021, spending a total of $641 million, generating $31 million in local tax revenue. The continued growth in this industr y is supported by the efforts of Visit Burbank in collaboration with Warner Bros. Studio Tour Hollywood, Universal Studios Hollywood , and the Hollywood-Burbank Airport, which recently surpassed pre-pandemic passenger highs. While growth has been strong, it has mostly been in the leisure travel sector . Full growth and volumes including business travel are not expected to return to pre-Pandemic levels until 2024.
DISCUSSION
The Annual Report is required by the California Streets and Highways Code Section 36650 and provides insight into FY 2022/2023 (July 1, 2022 , to June 30, 202 3) and is referenced as Attachment 1. The BHA Year in Review FY 2021/2022 and Looking Ahead Marketing Report, referenced as Attachment 2, provides highlights of the accomplishments and successes the organization achieved during the past fiscal year while also providing insight into the upcoming year.
FY 2021/2022 Accomplishments
The Pandemics disruption caused by travel advisories, mask mandates, new variants, and testing requirements continued to add uncertainty and reduced demand for travel in the second half of 2021. In response, the TBID shifted it’s marketing focus to regional and domestic travel, concentrating on non- stop flight markets into the Hollywood Burbank Airport and the drive-time market, defined as primarily family travel from a 300- mile radius. In early 2022, marketing initiatives increased and continued to focus on domestic travel while also incorporating international travel from Canada resulting from the non- stop flights from Vancouver and Edmonton to the Hollywood Burbank Airport (BUR).1
Accomplishments for FY 2021/2022 included:
1Service from Canada was suspended at the Hollywood Burbank Airport in October 2022. 3 • Marketing Campaign: Created a digital marketing campaign targeting leisure travelers in drive- time and non- stop flights arriving to the Hollywood Burbank Airport generating 12.6 million impressions (the number of times an ad is displayed and seen by a consumer) in FY 2021-2022, up 125% compared to FY 2020-2021. • Social Media Influencer Program: Created social media influencer campaigns and media familiarization tours communicating Burbank’s appeal to diverse audiences resulting in ten influencer partnerships representing 900,000 combined followers and four media visits reaching audiences of 930,000. • Universal Studios Hollywood Partner Hotel Program: Funded the participation of nine Burbank hotels in the Universal Parks and Resorts Vacations Partner Hotel Program achieving $1.2 million in sales in leisure travel through the program. • HotelPlanner Preferred Member Program : Funded the participation of nine Burbank hotels in HotelPlanner achieving $4.2 million in group travel through the program.
• Events & Conferences: Attracted and sponsored events and conferences such as MUSExpo, CTN Animation eXpo, and the Arts, Media and Entertainment (AME) Institute generating $441,000 in additional room night revenue. • Trade Shows: Attended travel trade shows such as US Travel Association's IPW, to promote Burbank as an international and domestic destination to travel industry professionals; met with more than 60 tourism industry professionals to sell Burbank as a destination.
• Destination Development:
o Superhero Selfie Spots: Planned and coordinated the launch of Phase II of the monumental icons with DC Comics with the development of the Wonder Woman statue to be placed in front of the Warner Bros tour Center in March 2023.
o ONEBurbank: Funded the participation of 13 Burbank hotels in the Burbank Water and Power’s ONEBurbank high-speed fiber internet service (ONEBurbank) to enhance the visitor experience within the hotels.
Looking Ahead FY 2022/2023
Sales & Marketing Programs
Sales and Marketing programs promote Burbank as a top leisure and business destination with the goal of increasing hotel occupancy . The following programs are proposed for FY 2022/2023:
• Marketing Campaign: Attract domestic drive- time markets, non- stop flight markets into the Hollywood Burbank Airport, and Canadian markets through Google Pay Per Click, Google Display advertising, social media ads, and participation in collaborations with Discover Los Angeles, Visit California, and Brand USA.
• Social Media Influencer Program: Increase social media followers and engagement through Social Media Influencer Program and social media contests and giveaways.
• Universal Studios Hollywood Partner Hotel Program: Fund the participation of Burbank hotels in the Universal Parks & Resorts Vacations Partner Hotels Program to enhance revenue in the leisure travel market for Burbank. 4 • HotelPlanner Preferred Member Program : Fund t he participation of Burbank hotels in the HotelPlanner Program to enhance revenue in the group sales market. • Events & Conferences: Increase overnight stays by attracting and sponsoring multi-day events such as CTN Animation eXpo, Musexpo, Burbank Internati onal Film Festival, and Arts, Media & Entertainment Leadership Institute. • Trade Shows: Attend trade shows to promote Burbank as an international and domestic destination to travel industry professionals.
Destination Development Programs
Destination Development invests in a variety of projects designed to elevate the traveler experience in Burbank and create a more defined sense of place. Projects include:
• Superhero Selfie Spots : Launch Phase II of a series of monumental bronze statues of superheroes with Wonder Woman (projected unveiling March 2023), and more at tourism destinations across Burbank.
• OneBurbank: Fund the participation of additional hotels in ONEBurbank high- speed fiber internet service, enhancing the internet access/experience for hotel guests.
• Airline Marketing: Provide airline marketing support to continue to promote new routes that build customer awareness of Burbank.
FISCAL IMPACT
There is no fiscal impact to the City’s General Fund by approving the FY 202 2/2023 Annual Report. During FY 2021/2022, the City of Burbank collected $10,525,080 in TOT revenue (figure as of June 30, 2022) while the TBID collected approximately $1,149,306 in assessments.
CONCLUSION
Tourism continues to be a strong economic generator for Burbank and an important area of focus for Economic Development. For the past eleven years, the TBID has helped create an agglomeration of tourism drivers that helps support this growth industry. The ability to develop and manage the efforts of the TBID has created a partnership that leverages funding from the private sector to boost hotel occupancy and general fund revenues for Burbank . Additionally, the TBID has created collaborations with the Hollywood Burbank Airport, Warner Bros. Studio Tour Hollywood, and Universal Studios Hollywood, all of which have greatly contributed to enhancing tourism in Burbank. The TBID will continue to promote Burbank as a leading domestic, national, and international tourist destination as this creates a multiplier effect for retailers and restaurants. Visitors shop in our stores and dine in our restaurants , which in return increases sales tax and TOT revenues for the City ultimately helping build a safe, beautiful , and thriving community.
ATTACHMENTS
Attachment 1 - Burbank Tourism Business Improvement District Annual Report FY 2022/2023
Attachment 2 - Visit Burbank Accomplishments for FY 2020/2021 and Looking Ahead FY 2022/2023 Brochure