November 7, 2023
Approve the
Huntington Beach
Tourism Business
Improvement District
(HBTBID) Fiscal Year
(FY) 2023-24 Annual
Report
Background
• HB Tourism Business Improvement District (HBTBID)
formed in 2014 pursuant to the CA Property and
Business Improvement District Law of 1994
• HBTBID purpose is to increase overnight room sales
with funding dedicated to marketing and public
relations, group sales, and visitor services
enhancements
• Funding derived from assessments collected from
lodging businesses operating within City boundaries
• HBTBID was renewed in 2019 and runs through
June 30, 2028
• HBTBID’s Owners’ Association must prepare an Annual
Report for Council approval
HBTBID
• Comprised of approx. 21 hotels/motels and
225 Short Term Rentals (STRs)
• Current assessment rate is 4% of gross
short-term room rental revenue
• Boundary includes all lodging businesses,
existing and in the future, available for
public occupancy within the City
• Total assessments approximately
$7 million for FY 23-24
• City collects assessments monthly from
hotels/motels and quarterly from STRs
Visit Huntington Beach (VHB)
• Visit Huntington Beach (VHB), a non-profit
501(c)6 organization, serves as the
HBTBID Owners’ Association
• Consists of 14 full-time staff members
and 22 board members dedicated to
promoting tourism to HB to increase
overnight lodging stays
• Responsible for implementing the
programs identified in the Management
District Plan (MDP) and for submitting an
annual report to the City Council for
approval
• Agreement between City and VHB to
manage the HBTBID’s funds and activities
FY 23-24 Annual Report
Per Streets and Highways Code §36650, Annual Report
must contain:
• Any proposed changes to boundaries/benefit
zones/classifications;
• Improvements/maintenance/activities for that FY;
• Cost estimate of providing the
improvements/maintenance/activities for that FY;
• Method and basis of levying the assessment;
• Estimated amount of any surplus/deficit from a
previous FY; and,
• Estimated contributions to be made from other
sources.
FY 22-23 Highlights
• Marketing Campaigns
o #BeHere 3.0
o 2022 WSL Vans US Open of Surfing
o 2022 ISA World Surfing Games
• Launched redesigned website
• Produced HB Tourism Summit
• Hosted 16 journalists and 7 influencers
• Conducted 733 total travel agents
• Success of HB Collection Beachwides
FY 23-24 Work Program
• Driving Global Brand Awareness - Increase visibility of HB/Surf City USA® brand by targeting key media, travel trade, meeting planners, and leisure/business travel markets to increase overnight visitation, visitor spending, and events/group meetings.
• Enhancing Destination Stewardship - Ensure that HB places to eat, shop, play, and stay are enjoyed and experiences are fun, unique, accessible, memorable, and inspire repeat visitation. • Championing the Value of Tourism - Educate on the vital role of the travel & tourism industry and provide greater
understanding of its impacts and benefits.
• Prioritizing Organizational Effectiveness and Culture - Ensure VHB’s spirit of service is operating at optimal efficiency and consistently delivering on its Mission, Vision, and Brand Promise.
FY 2023-24 Budget
INCOME
Estimated TBID Assessments $7,090,560
Retail, Web Ad, Walking Tour Sales $21,220
Total Revenues $7,111,780
Estimated Carry-over from Previous FY $459,200
TOTAL FUNDS AVAILABLE $7,570,980
EXPENDITURES
Tourism Enhancement Programs (83%) $6,301,912
Administration (15%) $1,154,067
Contingency/Reserve (2%) $115,000
TOTAL EXPENDITURES $7,570,979
Expenditures
Administration expenditures (15%) - Operational staffing costs, office costs, and other (insurance, legal, and accounting fees).
Tourism Enhancement Programs (83%) - Variety of services/programs and associated staff time through two sub-programs:
• Sales & Marketing - Promotes assessed lodging businesses as tourist, meeting, and event destinations with a central theme of HB destination brand as a desirable place for overnight visits. Goals include increasing overnight visitation and room night sales. • Visitor Services Enhancements (VSE) - Focus is on the entire destination brand footprint to ensure a consistent brand experience throughout HB.
Approve the HBTBID Annual Report for FY 2023-24
Recommendation
Questions?