TO: COMMUNITY AND ECONOMIC FROM: Nanci Klein
DEVELOPMENT COMMITTEE
SUBJECT: SEE BELOW DATE: October 12, 2022
Approved Date
SUBJECT: TEAM SAN JOSE SEMI-ANNUAL UPDATE
RECOMMENDATION
Accept a report on Team San José’s:
a) Unaudited Performance Measures for Fiscal Year 2021-2022 (FY 2021-2022); b) Performance Measures for FY 2022-2023; and
c) Annual Sales and Marketing Plan for FY 2022-2023.
BACKGROUND
Team San José (TSJ) is an innovative nonprofit organization unifying the San José Convention and Visitors Bureau (CVB), hotels, arts, labor, and venues to deliver a high-quality visitor experience. TSJ manages the San José McEnery Convention Center, Parkside Hall, and South Hall as well as theater venues including the California Theatre, Center for the Performing Arts, Montgomery Theater, and the San José Civic Auditorium. Pursuant to the municipal code, the City provides 4.5% of the collected 10% Transient Occupancy Tax (TOT) to TSJ to operate the convention and cultural facilities venues and manage the CVB. The TOT is collected from visitors to San José hotels.
ANALYSIS
Pursuant to the master agreement between the City and TSJ, semi-annual updates on TSJ’s performance on Council-approved target measures are presented to the Community and Economic Development (CED) Committee. To support a greater understanding of TSJ’s strategies and activities, TSJ also presents its sales and marketing activities. Included in the report is a dashboard of metrics that, while not part of TSJ’s performance, provides insight into industry trends and the local environment. The presentation will focus on TSJ’s major goals for FY 2022-2023 and the major work plan activities to meet them. The CED Committee will also be updated on the impacts of and recovery from COVID-19.
CED COMMITTEE: 10/24/22
FILE: CC 22-238
ITEM: (d)1
10/12/22
COMMUNITY AND ECONOMIC DEVELOPMENT COMMITTEE
October 12, 2022
Subject: Team San José Semi-Annual Update
Unaudited FY 21-22 Performance Metrics
TSJ and the City collaborated to develop performance targets for FY 2022-2023 informed by national industry trends and local indicators, which also informed the development of TSJ’s sales and marketing strategies. While convention center events resumed in August 2021, the emergence of the COVID-19 variants, necessary mitigations such as the City’s vaccination mandate for City-owned facilities and required lead times for facility bookings have impacted attendance for events and consumer confidence in comparison to pre-pandemic levels.
Recovering from restrictions on travel and convenings, TSJ is rebuilding its lines of business as well as refocusing its CVB marketing strategies based on travel trends.
While unaudited, TSJ reports exceeded all its performance targets in FY 2021-2022. This is a promising indication of economic recovery after several years of restrictions and ambiguity due to the COVID-19 pandemic.
FY 22-23 Performance, Sales, and Marketing Goals
In addition to the performance metrics, TSJ will present to the CED Committee highlights of its goals and marketing activities for FY 2022-2023, including industry trends as outlined in Attachment A. TSJ, operating as “Visit San José,” seeks to diversify its market segmentation for sales. Based on San José travel data, the marketing team at Visit San José is targeting in-state markets and weekend leisure travel by building awareness of San José as a unique Bay Area destination. The marketing team partnered with local artists to create campaign collateral and to promote community assets and events. All the strategies are research-driven to meet the Councilapproved performance goals.
At the November 28, 2022, CED Committee meeting, the City Auditor’s Office will report on its audit of TSJ’s FY 2021-2022 performance, which will be cross-referenced to the full City Council by the end of the 2022 calendar year.
COORDINATION
This memorandum had been coordinated with the City Attorney’s Office. /s/
NANCI KLEIN
Director of Economic Development and
Cultural Affairs
For questions, contact Kerry Adams Hapner, Director of Cultural Affairs, at (408) 793-4333.
Attachment A: CEDC TSJ October FY 2022-2023 Semi-Annual Report