1 STAFF REPORT
DATE: December 10, 2024
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 4–25 Annual Report
RECOMMENDATION
Approve the Fiscal Year (FY) 202 4–25 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 district 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, and increased revenue in Sales Tax, Transient Parking Tax (TPT), and TOT.
City Council (Council) approved the TBID for a five- year term on September 20, 2011 .
The TBID was renewed in 2016 for an additional ten-year term and is slated for renewal in 2026. For the past 13 years, the TBID has provided a stable funding mechanism that supports the growth of the hospitality industry including hotels, attractions, transportation, restaurants, and retailers.
The TBID is governed by a Board of Directors known as the BHA, a non-profit corporation.
The BHA, also known as Visit Burbank, is an example of a successful public/private
COMMUNITY
DEVELOPMENT
2 partnership with the City. The Economic Development Team manages the programs and projects 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 E conomic Development and is included as one of the growth sector areas in the Five- Year Economic Development Strategic Plan adopted by Council in March 2024. Tourism is a significant revenue generator for the City’s General Fund, with TOT revenue accounting for $13,184,332 in FY 2023 -24, projected to be $13,853,000 in FY 2024-25.
The TBID has a portfolio of 19 hotels with 2,719 rooms and four hotel projects either under construction or under review, adding approximately 1,000 new hotel rooms over the next five-years. Hotel occupancy has continued to slowly recover post -pandemic and was reported at 74.3% at the end of FY 202 3-24. While occupancy levels still haven’t recovered to pre-pandemic figures of 83%, Average Daily Rates1 (ADR) and Revenue Per Available Room2 (RevPAR) figures have surpassed those from 2019 as depicted in Figure 1 below. ADR in FY 2023 -24 was at $189.23 while RevPAR was at $140.52 compared to $164 .00 and $136.00 in 2019. The TBID continues to be an important contributor 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%.
Figure 1
FY 23/24 2019
ADR $189.23 $164.00
RevPAR $140.52 $136.00
Occupancy 74.3% 83%
The Annual Report (Attachment 1) is required by the California Streets and Highways Code § 36650 and provides insight into coming year, FY 2024-25 (July 1, 2024 to June 30, 2025). The BHA Year in Review FY 202 3-24 and Looking Ahead Marketing Report (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 2023-24 Accomplishments
Since 2011, the TBID has provided a stable funding mechanism to market and promote Burbank as a tourist destination, add ing arts and cultural projects and enhanc ing the
1 Average Daily Rate (ADR) – is a metric used to understand the hotels financial performance and measures the average revenue earned per occupied room in a given period of time. This metric only considers average revenue generated.
2 Revenue Per Available Room (RevPar) – is a metric used to understand the hotels financial health and measures the average revenue generate per room during a given period. This metric considers both the ADR and occupancy rate. 3 visitor experience. The fundamental goal of the TBID is to support and grow the hospitality industry in Burbank by increasing hotel occupancy through overnight stays. To achieve this goal, the TBID focuses on domestic, national, and international marketing campaigns, attracting events and conferences to increase room sales , and showcasing art exhibits and statues that increase the visitor experience and portray Burbank as a tourist destination. Within each area of focus are the following strategies , which have proven successful in boosting hotel occupancy and growing tourism:
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.
Burbank Tourism Impact Report 2023
As in previous years, staff commissioned Tourism Economics to conduct a study of the economic impact of tourism in Burbank in 2023. Results showed that Burbank’s overnight visitors increased 2.5% to 3.1 million when compared to 2022, visitor spending increased
4.1% to $829 million, and 1,490 tourism related jobs were added in 2023 for a total of 7,790 jobs. A local return of $31 million was generated in lodging, sales, property taxes and fees supporting local government revenues.
The following are highlights of the TBID’s accomplishments during FY 2023-24 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 42.8 million impressions (the number of times an ad is displayed and seen by a consumer) in FY 2023-24, up 100% compared to FY 2022-23. • Social Media Influencer Program : Created social media influencer campaigns and media familiarization tours communicating Burbank’s appeal to diverse audiences resulting in seven influencer partnerships representing 2.2 million combined followers.
• Universal Studios Hollywood Partner Hotel Program: Funded the participation of twelve Burbank hotels in the Universal Parks and Resort s Vacations Partner Hotel Program, achieving $1.8 million in hotel bookings and 740K impressions. 4 • HotelPlanner Preferred Member Program : Funded the participation of ten Burbank hotels in HotelPlanner, the largest online group hotel reservation system globally, achieving $2.8 million in group travel sales through the program, up 70% compared to FY 2022-23.
• Events & Conferences 3: Sponsored seven events and conferences such as MUSExpo, CTN Animation eXpo, the Arts, Media, and Entertainment Institute, Afro Animation Summit 4.0, CalSAE Elevate Annual Conference, Burbank International Film Festival, and Burbank Comedy Festival, generating $406 K 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 80 tourism industry professionals to sell Burbank as a destination.
Destination Development
• Elephant Parade Burbank 2024: Attracted and funded the world’s largest touring public elephant art exhibit to Burbank from July to August 2024. • Visit Burbank Bicycle Program : D eveloped a new program, purchased, and distributed 51 branded bikes to eight participating hotels to provide to their guests as an added amenity; developed a corresponding bicycle map and website landing page.
• Superhero Statue Program: Completed the logistics and agreements for Green Lantern, the third monumental bronze statue for a November 2024 unveiling. • ONEBurbank: Funded the participation of 16 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 2024-25
Sales & Marketing Programs
Sales and Marketing programs promote Burbank as a top leisure and business destination with the goal of increasing hotel occupancy . In addition to all the programs outlined in FY 2023- 24, the TBID proposes the following new initiatives in Sales and Marketing Programs for FY 2024-25:
• Burbank Chamber of Commerce Annual Marketing Sponsorship: Partner with the Chamber of Commerce to promote Visit Burbank to local Burbank businesses and residents to generate awareness, encourage usage of hotel meeting space s and increase hotel bookings.
• New Branding and Marketing Agency: Release a Request for Proposal to hire a new marketing and social media agency to refresh brand assets and brand
3 Annual events that attract overnight visitors and are supported by Visit Burbank through sponsorship funding. 5 messaging for Visit Burbank to remain competitive in the Los Angeles tourism market.
Destination Development Programs
Destination Development invests in a variety of projects designed to elevate the visitor experience in Burbank and create a more defined sense of place. In addition to the programs outlined in FY 2023-24, new initiatives for FY 2024-25 include:
• Superhero Statue Program : Expand the monumental program with the completion of the installation and unveiling of the Green Lantern statue, Phase III of a series of b ronze statues developed by Visit Burbank . Identify additional opportunities and locations for more statues to reinforce Burbank as the media capital of the world and inspire social media engagement. • Hollywood Burbank Airport Advertising Campaign: Strategically place advertising in various locations throughout the airport to promote Burbank’s shopping, dining, and lodging amenities to more than six million annual visitors. • Federation Internationale de Football Associatio n (FIFA) World Cup 2026 & 2028 Summer Olympics (LA28): Collaborate with event planning committees for each organization to secure hotel blocks for Burbank hotels, develop citywide special events and viewing parties at various locations throughout the C ity, showcase Burbank’s major attractions, hotels , and convenient access to events , and promote Burbank as an official sports destination for FIFA and LA28.
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 subject to CE QA pursuant to § 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 § 36650.
FISCAL IMPACT
There is no fiscal impact to the City’s General Fund by approving the FY 2024-25 Annual Report. During FY 20 23-24, the City collected $ 13,184,332 in TOT revenue, while the TBID collected approximately $1,318,433 in assessments. In FY 202 4-25 the City is projected to receive $13,853,000 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 13 years, the TBID has helped create a network of tourism drivers that helps support this growth industry. The public/private 6 partnership between the City of Burbank and the TBID has created a partnership that leverages funding from the private sector to boost hotel occupancy and general fund revenues for the City. Additionally, because tourism is a major economic driver, the TBID is managed by the Economic Development Team which has aided in creat ing additional 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 partnerships that the TBID has created helps support more tourism to Burbank and will be important for the ongoing success of the new proposed hotels, the new airport replacement terminal, and the upcoming FIFA and LA28 games.
The ongoing efforts of the TBID have contributed to the economic wellbeing of the City , generating $31 million in local tax revenues in 2023. Tourism also creates a multiplier effect for retailers and restaurants as visitors shop in our stores and di ne in our restaurants. These benefits increase 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 2024-25
Attachment 2 – Visit Burbank Accomplishments for FY 2023-24 and Looking Ahead FY 2024-25 Brochure