GARDEN GROVE TOURISM IMPROVEMENT DISTRICT
ADVISORY BOARD REPORT
The Garden Grove Tourism Improvement District (GGTID) was established by the Garden Grove City Council in accordance with the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code section 36500 et seq. (referred to as the “Law”), through the adoption of Resolution No. 9009-10 on August 24, 2010, and Ordinance No. 2782 on October 26, 2010.
The purpose of the GGTID is to provide revenue to defray the costs of advertising and marketing efforts designed to increase overnight stays in the GGTID, for construction and maintenance of improvements in the GGTID, and to provide other services, activities, and programs that promote and encourage tourism within the GGTID, which will benefit the Operators of Visitor Accommodation Facilities paying assessments through the promotion of scenic, recreational, cultural, and other attractions.
Pursuant to Ordinance No. 2782, the Board of Directors of the Garden Grove Tourism Promotion Corporation, a California non-profit mutual benefit corporation, serves as the GGTID Advisory Board. In accordance with Ordinance No. 2782 and California Streets and Highways Code Section 36533, the Advisory Board is required to annually prepare and submit to the City, a report for the upcoming fiscal year, which is required to contain the following:
1. Any proposed changes in the boundaries of the GGTID or the benefit zones within the GGTID.
2. The GGTID improvements and activities to be provided in the upcoming fiscal year from GGTID assessment revenues and/or any other contributions from sources other than GGTID assessment revenues.
3. An estimate of the cost of providing the GGTID improvements and the activities for the upcoming fiscal year.
4. The method and basis of levying the assessment in sufficient detail to allow each Visitor Accommodation Facility to estimate the amount of the assessment to be levied against the Visitor Accommodation Facility for the fiscal year, and any proposed changes to the method and basis of levying the assessment.
5. The amount of any surplus or deficit revenues to be carried over from the previous fiscal year.
6. The amount of any contributions to the GGTID to be made from sources other than assessments levied against the Visitor Accommodation Facilities.
1. CHANGES TO BOUNDARIES
The boundaries of the GGTID generally include certain real property within that area of Garden Grove fronting, bordering, or near Harbor Boulevard from the northern boundary of the City to Garden Grove Boulevard. The GGTID is divided into two (2) separate zones: (i) Tier I, which includes that real property within the GGTID north of Lampson Avenue, and (ii) Tier II, which includes that real property within the GGTID south of Lampson Avenue. A map showing the precise area and boundaries of the GGTID and the two benefit zones is on file with the Garden Grove City Clerk. No changes to boundaries of the GGTID are proposed.
2. Proposed activities for 2024-2025
The GGTID improvements and activities to be provided in the upcoming fiscal year from GGTID assessment revenues and/or any other contributions from sources other than GGTID assessment revenues include:
A. Develop a new website will promote and market the Grove District as the leading leisure destination in Southern California. This endeavor aims to enhance our competitive positioning within both the consumer and travel trade sectors. These initiatives serve as a seamless extension of our partners' sales endeavors, providing a distinctive platform to showcase the latest hotel inventory, renovations, and new additions in dining, entertainment, and transportation infrastructure.
Grove District Sales & Marketing: The sales and marketing initiative will promote Garden Grove's assessed lodging businesses as premier tourist, meeting, and event destinations. The central theme of the program will focus on elevating the Garden Grove destination brand as a desirable location for overnight stays. The primary objective is to boost overnight visitation and room night sales at assessed lodging businesses. This comprehensive strategy may encompass various activities tailored to drive overnight visitation and room sales:
Enhanced advertising and promotional campaigns across print, online, social media, and television platforms targeting potential visitors.
Website enhancements and updates to optimize user experience and engagement. Collaboration with strategic advertising and marketing agencies to maximize outreach. Partnerships with third-party marketing and sales agencies to expand market reach. Implementation of public relations campaigns, sales blitzes, missions, and calls to attract visitors.
Creation and distribution of collateral promotional materials such as visitor guides, brochures, flyers, and maps.
Development of captivating destination experience videos to showcase Garden Grove. Participation in professional industry conferences and affiliation events to network and promote the destination.
Execution of lead generation activities to attract tourists, leisure visitors, and group events. Collaboration with targeted special events that draw overnight visitors. Conducting research to identify potential markets for customer base expansion and assess the economic impact of tourism on Garden Grove.
Collaboration with local agencies and film commission programs to enhance visitor experiences and attract overnight visitors.
Visitor Enhancements: The Visitor Enhancements (VE) program will allocate funding for initiatives aligned with predetermined criteria set by Garden Grove, in collaboration with relevant stakeholders.
The focus will be on enhancing the overall destination brand experience across Garden Grove. The VE program may include the following initiatives aimed at driving overnight visitation and room sales:
Development of activities and products to extend visitor stays throughout the year. Implementation of a connectivity plan linking key visitor destinations such as downtown Garden Grove, hotels, and adjacent attractions.
Support for a transportation program, such as a trolley service, connecting hotels to downtown Garden Grove, The Pier, and other attractions.
Implementation of a long-term ambassador and/or security program to enhance visitor safety and overall destination experience.
Implementation of a brand-centric visitor services training program for both public and private sector staff to ensure consistent and exceptional visitor experiences.
B. Maintenance Activities
Maintenance activities encompassing sidewalks, landscaping, bus shelters, and palm tree lighting are to be conducted along the intersection of Harbor Boulevard, extending from the junction of Harbor Boulevard and Chapman Avenue to Garden Grove Boulevard.
C. Private Security
Implement private security measures to bolster safety within the Grove District.
D. Trade Mission
Garden Grove Tourism Promotion Corporation (GGTPC) will continue to strategically promote and market the City in emerging domestic and international markets, emphasizing tourism opportunities and positioning Garden Grove as a premier tourist destination. This initiative aims to capitalize on key metrics, such as increasing tourist arrivals, boosting local businesses, and elevating the economic impact generated by the tourism sector.
E. Garden Grove Chamber of Commerce's Tourism Initiatives Moving forward into the next year, the Garden Grove Chamber of Commerce will continue to play a pivotal role in advancing the marketing efforts. Additionally, the chamber will actively support and promote The Grove District at chamber networking events, business development programs, and advocacy initiatives.
F. Partnership with Visit Anaheim
The GGTID will continue its partnership between the Garden Grove Tourism Improvement District and Visit Anaheim which has been a cornerstone of strategic and successful collaboration for over 13 years.
Visit Anaheim has emerged as a leading force in the convention and meetings markets, leveraging its expertise and resources to catalyze significant growth within Garden Grove's hospitality sector. Through meticulously designed strategic initiatives, Visit Anaheim has executed targeted campaigns in key markets, showcasing Garden Grove's unique offerings and attractions. This concerted effort has not only diversified the area's clientele but also positioned Garden Grove as an enticing destination for large- scale conventions and events, drawing visitors from across the globe.
CONVENTION SALES
Visit Anaheim will continue to focus on booking "A-Rated" business which has a mix of guest rooms to drive TOT for the City of Anaheim as well as being profitable for the Anaheim Convention Center in both Rental, Food & Beverage and ancillary spend. Association business will be our base with an emphasis on tradeshow and corporate segments. Convention Sales and Business Development will add a Manager (CSBDM) in Q1 who will increase the "mini-wide" segment (those groups under 1,000 rooms peak at published CC rates within 12-18 months of arrival). This will give the Convention Sales Directors more time to target and close citywide events with a higher EIC to the City of Anaheim. The CSBDM will also focus on uncovering new business opportunities for the Citywide Team primarily from the trade show market then expanding into corporate and eventually association.
Visit Anaheim will continue to allocate TID funds to offset Convention Center rental and present comprehensive proposals that will compete with our comp set of cities. In addition, closing incentives will be offered when necessary. We will also work in conjunction with VA Destination Services and the ACC team to produce a comprehensive post-convention report for our clients. This will add value to our proposals and assist in closing business.
Meeting Sales
In 2024, The Visit Anaheim Meeting Sales team remains dedicated to cultivating leads, with a primary focus on fostering new business relationships. The strategy includes attending tradeshows targeting corporate planners across various industries such as Automotive, Technology, Financial, Bio-tech, Pharmaceutical, Insurance, and Incentive markets. These sectors typically yield high-value business opportunities sought after by hotel partners. Additionally, continuing to forge existing relationships with Local, State, National, and International Association and Government accounts.
Outlined below are the tentative tradeshows that Visit Anaheim has targeted to bring new business to Anaheim and Garden Grove for 2024-2025:
Northstar IPEC Independent Planner Education Conference - Greenville, S.C. Meeting Professionals International Northern California Chapter ACE Bay Area Pharma Forum - Tampa, FL
Destination Celebration
Global Meetings Incentive Travel Executives - Orlando, FL Meetings Today - San Antonio TX
Destination California
HPN Annual Partner Conference - Houston, TX
IMEX America - Las Vegas, NV
Northstar Incentive Live - Las Vegas, CA
Meeting Professionals International Southern California Chapter Connect DC Marketplace
WECON - Newport Beach, CA
Conference Direct Annual Partner Meeting - Arlington, TX HelmsBriscoe ABC - Las Vegas, NV
Connect Marketplace - Milwaukee, Wisconsin
FICP Annual Conference - Denver, CO
Connect West - Bay Area
AMEX Inter[action] - TBD
SITE Holiday Event - San Diego
CalSAE Seasonal Spectacular - Sacramento, CA
Prestige Meetings - Salt Lake City, UT
SITE Incentive Summit Americas (ISA) - St. John's, NL, Canada Cvent Connect - San Antonio, TX
Meetings Today - Boise, ID
By actively engaging in these events Visit Anaheim will broaden its network, and cultivate partnerships, and propel business expansion and bring new business to the resort. (See VISIT ANAHEIM 2024 FOCUS PDF)
G. The City's application to OCTA for the fiscal year 2024-25 Community-Based Transit/Circulators Program seeks approximately $296,000 in funding from GGTID Transit Funds. This program aligns with OCTA's goal to improve regional transit, especially in underserved regions. The Measure M2 Project V Community-Based Transit/Circulators Program offers competitive grants to establish local transit services that complement existing regional transit. The proposed program plans to launch a shared ride -hailing service using an all-electric, eco-friendly fleet. It will serve as essential connectors between the tourist district, key city activities, and economic hubs like Main Street, the GEM Theatre, Little Saigon, and Korea Town. This service will enhance accessibility to major city attractions, such as the SteelCraft Food Hall and the Garden Grove Civic Center, while ensuring a safe, clean, and convenient transit experience.
H. The City of Garden Grove will be applying for an Economic Development Administration Grant (EDA) to enhance street landscape, lighting, and maintenance along Harbor Boulevard. This project seeks to upgrade the streetscape and enhance resort transit. The EDA requires matching funds of 50%, estimated at $3 to $4 million, based on a total project cost ranging from $6 to $8 million. Funding for this project will come from GGTID Transit Funds.
3. ESTIMATED COST OF IMPROVEMENTS & ACTIVITIES
The attached Budgets show the estimated assessment revenues and costs for the GGTID for FY 2024-25.
Pursuant to an agreement between the City of Garden Grove and the VCB entered into on or about February 22, 2011, approximately eighty percent (80%) of the net GGTID assessment revenues (i.e.,
2.0% of the total 2.5% assessment in Tier I and 0.4% of the total 0.5% assessment in Tier II), will be allocated to Visit Anaheim to administer and use for marketing and promotion of tourism and conventions benefitting the Visitor Accommodation Facilities as part of the “Anaheim Resort District.” For FY 2024-25, the City is retaining one-half of one percent (0.5%) of gross rent charged per room night occupied for transit or transportation system benefitting the GGTID.
The first Budget shows the estimated GGTID assessment revenues to be allocated to Fiscal Year 2024-25 and the estimated costs of those categories of improvements and activities to be funded by this portion of the GGTID assessment revenues. The remaining approximately twenty percent (20%) of the net GGTID assessment revenues will be allocated to improvements and activities within and to benefit the GGTID other than those provided by Visit Anaheim. These funds are administered by the Garden Grove Tourism Promotion Corporation (“GGTPC”) pursuant to an agreement with the City.
The second Budget shows this portion of the estimated GGTID assessment revenues for Fiscal Year 2024-25 and the estimated costs of those categories of improvements and activities to be funded by this portion of the GGTID assessment revenues and any surplus assessment revenues carried over from Fiscal Year 2023-24.
Attached are estimates detailing the costs associated with providing improvements and conducting activities for the upcoming fiscal year budgets of both the Garden Grove Tourist Improvement District and Visit Anaheim.
4. METHOD AND BASIS FOR LEVYING THE ASSESSMENT
There is no change in the amount of the annual assessment for Fiscal Year 2024-25 or the method and basis for the levying the assessment is proposed. It is recommended that the annual assessments for FY 2024-25 continue to be two and one-half percent (2.5%) of the gross rent charged by the Operator per room Occupancy per night for all Transient Occupancies for each Visitor Accommodation Facility in Tier I and (ii) one-half percent (0.5%) of the gross rent charged by the Operator per room Occupancy per night for all Transient Occupancies for each Visitor Accommodation Facility in Tier II. In accordance with Ordinance No. 2782, the assessments shall be collected monthly, based on the applicable percentage of the amount of gross rent charged by the Operator per room Occupancy per night for all Transient Occupancies in the prior calendar month, in the same manner, and at the same frequency, as the City’s Hotel Visitors Tax imposed pursuant to Chapter 12 of Title 3 of the Garden Grove Municipal Code.
5. PRIOR YEAR SURPLUS OR DEFICIT TO BE CARRIED OVER
It is estimated that there will be approximately $150,000 in surplus assessment revenues from Fiscal Year 2023-24. It is recommended that these surplus assessment revenues be carried over to FY 2024-25 to fund the costs of the anticipated GGTID improvements and activities to be provided in Fiscal Year 2024-25, as more specifically delineated in the attached Budgets.
6. OTHER CONTRIBUTIONS
No contributions to the GGTID from sources other than the assessments levies are anticipated in Fiscal Year 2024-25.
2023-2024 GGTID Accomplishments
For the years 2023-2024, a significant 80% of our tourism and marketing efforts were strategically invested in Visit Anaheim, a premier organization and leader in bringing tourism to Orange County. Since 2015, the partnership with Visit Anaheim has been the cornerstone of our tourism strategy, playing a vital role in bolstering Garden Grove's resort hotels. Their contributions have been instrumental in generating over 870,000 peak hotel room nights, resulting in an impressive $5.5 billion economic impact. Notably, these efforts have not only increased hotel occupancy during citywide events but have also elevated the average daily rates, thereby enhancing revenue and fortifying the economic resilience of Garden Grove's hospitality sector. For comprehensive details, please refer to the attached Garden Grove Tourism Improvement District - Visit Anaheim’s Annual Report.
The remaining 20% marketing funds were allocated towards activities supporting the Grove District, including enhanced landscaping from the Great Wolf Lodge to the Grove District hotels at Harbor Boulevard and Chapman Avenue. These activities involved tree trimming, gardening expenses, enhancements to the irrigation and sprinkler systems, and the implementation of a new banner program. Additionally, power washing of the bus shelters was conducted, along with professional fees for management of the Grove District.
In 2023 and 2024, the city embarked on a travel and tourism mission to South Korea and Japan, along with visits to Anaheim and the hotels within the district. City of Garden Grove's Grove District in Seoul, Korea, and the visit to our sister city, Anyang, South Korea, spanning from September 19 to September 23, 2023. Additionally, it provides insights into the outcomes of the sales mission activities in Tokyo, Japan, conducted from September 19 to September 23, 2023, in partnership with Visit Anaheim.
Notably, City Council members Joe DoVinh, Stephanie Klopfenstein, Cindy Noc Tran, and Mayor Steve Jones were present during the visit to both Seoul and Anyang, South Korea.
Travel Mission Objectives:
The primary objective of these travel missions was to actively promote the Grove District as a premier tourism destination. The Grove District is a critical driver of economic development in Garden Grove, contributing significantly to the city's revenue, which reached $28.5 million by the end of FY 22-23, and providing employment opportunities for over 3,500 individuals.
Sales Mission to Seoul, South Korea (September 16-19, 2023):
A delegation comprising Garden Grove staff, City Council Members, and Garden Grove partners, including The Great Wolf Lodge Southern California, Hilton Hampton and Homewood Suites, and Visit Anaheim which included representatives from the Westin South Hotel, South Coast Plaza, Disneyland, and the Richard Nixon Library, conducted a successful sales mission in Seoul, Korea. Please refer to the attached itinerary outlining the sales missions for Korea.
Key Activities in Seoul, Korea:
During the Seoul Korea sales mission, the delegation attended a marketing briefing that included updates on travel and tourism trends. Garden Grove also presented the Grove District to major Korean travel trade companies, including:
Biz World News
CBS
Digital Conversion
Discovery News
Asiana Airlines
Korean Travel Times
Maeil Business Newspaper
Open News
Tour Korea
Travel Daily
TTL (Travel and Tourism Leader)
Furthermore, a well-attended influencer event attracted the top 25 lifestyle and foodie influencers in Korea, significantly enhancing our visibility in the Orange County and Garden Grove market.
Visit to Sister City Anyang, South Korea (September 19-23, 2023):
Garden Grove officials embarked on a meaningful visit to our sister city, Anyang, South Korea, during this period, further strengthening cultural bonds and fostering goodwill between our cities.
Sales Mission to Tokyo, Japan (September 19-23, 2023):
Garden Grove staff, in collaboration with partners such as The Great Wolf Lodge Southern California, Hilton Hampton and Homewood Suites, and Visit Anaheim, including representatives from the Westin South Hotel, South Coast Plaza, Disneyland, and the Richard Nixon Library, conducted a dynamic sales mission in Tokyo, Japan. Please refer to the attached itinerary outlining the sales mission activities for Tokyo.
Key Activities in Tokyo, Japan:
During the sales mission, the delegation participated in a marketing briefing that included updates on travel trends for Japan. Garden Grove also presented the Grove District to major Japanese travel trade companies, including:
Disney Tokyo
Brand USA
JTB
HIS
IBJ
USA Embassy Tokyo
Delta Air Lines Korea
Japan Association of Travel Agents (JATA)
In addition, presentations were made to top Japan travel media companies, resulting in a significant social media postings. (See Attached Japan and Korea Metrics Report)
Summary:
The activities conducted during these travel missions significantly contribute to the economic development and tourism goals of Garden Grove. The meetings with key travel and trade partners in Korea and Japan helped facilitate new city's strategic initiatives to attract new visitors to the Grove District.