1 STAFF REPORT
DATE: December 12, 2023
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 202 3 – 2024 Annual Report
RECOMMENDATION
Approve the Fiscal Year (FY) 2023 – 2024 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. This results 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 twelve years, the TBID has provided a stable funding mechanism that supports the hospitality industry including hotels, attractions, transportation, restaurants, and retailers.
The TBID is governed 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. The Economic Development team manages the efforts of the TBID by developing strategies and initiatives to enhance tourism attraction and spending in Burbank.
DISCUSSION
Tourism is one of the top areas of focus for Economic D evelopment as it is a major revenue generator for the City’s General Fund, with TOT revenue accounting for
COMMUNITY
DEVELOPMENT
2 $12,208,382 in FY 2022-23. Currently, the TBID has a portfolio of 18 hotels with 2,569 rooms. This total will increase to 19 hotels and 2,719 rooms w ith the addition of the Cambria Hotel opening in late December 2023. Hotel occupancy has continued to slowly recover post-pandemic and was reported at 73.6% at the end of FY 202223. The TBID continues to be an important tool in attracting tourism to Burbank , and it is crucial to support its efforts to help grow occupancy and tourism in the City to the pre-pandemic figure of 83% occupancy.
The Annual Report is required by the California Streets and Highways Code Section 36650 and provides insight into FY 2023- 24 (July 1, 2023 to June 30, 2024) and is referenced as Attachment 1. The BHA Year in Review FY 2022- 23 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 2022-23 Accomplishments
During the past twelve years, the TBID has provided a stable funding mechanism to market and promote Burbank as a tourist destination. The fundam ental goal of the TBID is to support and grow the hospitality industry in Burbank by increasing hotel occupancy.
To achieve the goal of supporting and growing the hospitality industry in Burbank by increasing hotel occupancy, the TBID focuses on marketing, room sales, and destination development. Within each area of focus are the following strategies, which have proven successful in boosting hotel occupancy and growing tourism in Burbank:
1. Promote Burbank as a leading regional, national, and international tourist destination.
2. Brand Burbank as a desirable meeting and convention destination.
3. Attend trade shows to increase sales through the group travel market.
4. Leverage collaborations through partnerships with Warner Bros. Studio Tour Hollywood, Universal Studios Hollywood, and the Hollywood Burbank Airport.
5. Develop and launch destination development projects that enhance the visitor experience.
The following are highlights of the TBID’s accomplishments during FY 2022-23 in Sales, Marketing, and Destination Development:
Sales and Marketing Programs
• Marketing Campaign: Created a digital marketing campaign targeting leisure travelers in drive- time and non- stop flights arriving to the Hollywood Burbank Airport generating 21.6 million impressions (the number of times an ad is displayed and seen by a consumer) in FY 2022-23, up 171% compared to FY 2021-22.
• Social Media Influencer Program: Created social media influencer campaigns and media familiarization tours communicating Burbank’s appeal to diverse audiences resulting in six influencer partnerships representing 379,000 combined followers.
• Universal Studios Hollywood Partner Hotel Progr am: Funded the participation of eleven Burbank hotels in the Universal Parks and Resorts Vacations Partner Hotel 3 Program, achieving $1.9 million in hotel bookings, up 61% when compared to FY 202122.
• HotelPlanner Preferred Member Program: Funded the participation of ten Burbank hotels in HotelPlanner, achieving $1.7 million in group travel through the program, up 100% compared to FY 202122.
• Events & Conferences: Attracted and sponsored four events and conferences such as MUSExpo, CTN Animation eXpo, the Arts, Media, and Entertainment (AME) Institute, and Afro Animation Summit 3.0 , generating $1.47 million in 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 45 tourism industry professionals to sell Burbank as a destination.
Destination Development
• Superhero Selfie Spots: Phase II of the monumental icons with DC Comics was completed in March 2023 with the unveiling of the Wonder Woman statue placed in front of the Warner Bros. tour Center.
• ONEBurbank: Funded the participation of 15 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 for FY 2023-24
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 2023-24:
• Marketing Campaign: Attract domestic drive-time markets and 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 by continuing the Social Media Influencer Program and hosting 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 continue to enhance revenue in the leisure travel market for Burbank.
4 • HotelPlanner Preferred Member Program: Fund the participation of Burbank hotels in the HotelPlanner Program to continue to enhance revenue in the group sales market.
• Events & Conferences: Increase overnight stays by continuing to attract and sponsor multi-day events such as CTN Animation eXpo, Musexpo, AfroAnimation Summit 3.0, Burbank International Film Festival, and Arts, Media, & Entertainment Leadership Institute.
• Trade Shows: Attend trade shows to continue 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: L aunch Phase II I of a series of monumental bronze statues of superheroes with Green Lantern (projected unveiling mid-2024) and more at tourism destinations across Burbank.
• OneBurbank: Fund the participation of additional hotels in the 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.
ENVIRONMENTAL REVIEW
This Staff Report has no potential for resulting in a direct or reasonably foreseeable indirect physical change to the environment and falls outside the definition of a “project” under the California Environmental Quality Act (CEQA), and is therefore not s ubject to CEQA pursuant to Section 15378 of Title 14 of the California Code of Regulations. This Staff Report is for informational purposes only regarding annual review of the BHA Annual Report as required by California Streets and Highways Code Section 36650.
FISCAL IMPACT
There is no fiscal impact to the City’s General Fund by approving the FY 2023-24 Annual Report. During FY 20 22-23, the City collected $ 12,208,382 in TOT revenue, while the TBID collected approximately $1,226,360 in assessments. In FY 2023- 24 the City is projected to receive $12,259,000 in TOT revenue.
CONCLUSION
Tourism continues to be a strong economic generator for Burbank and an important area of focus for Economic Development. For the past twelve years, the TBID has helped create a network 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 5 the City. 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 which 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 2023-24
Attachment 2 – Visit Burbank Accomplishments for FY 2022-23 and Looking Ahead FY 2023-24 Brochure