TO: COMMUNITY AND ECONOMIC FROM: Nanci Klein
DEVELOPMENT COMMITTEE
SUBJECT: SEE BELOW DATE: March 13, 2023
Approved Date
SUBJECT: TEAM SAN JOSE SEMI-ANNUAL UPDATE
RECOMMENDATION
Accept a report on Team San José’s unaudited performance for the first half of FY 22-23 as well as its annual sales and marketing activities in FY 22-23.
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, South Hall, and theater venues including the California Theatre, Center for the Performing Arts, Montgomery Theater, and the San José Civic Auditorium. Per 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
Per the master agreement between the City and TSJ, semi-annual updates on TSJ’s performance on Council-approved target measures are presented to the Committee. To support a greater understanding of TSJ’s strategies and activities, TSJ also presents its sales and marketing activities. The report also provides metrics and insight into industry trends and the local environment. The presentation will focus on TSJ’s major goals for FY 22-23, its performance during the first half of the fiscal year, and its major sales and marketing activities. The Committee will also be updated on the recovery from the COVID-19 pandemic.
CED AGENDA: 3/27/23
FILE: CC 23-063
ITEM: (d)1
3/17/23
COMMUNITY AND ECONOMIC DEVELOPMENT COMMITTEE
March 13, 2023
Subject: Team San Jose Semi-Annual Update
Year-to-Date FY 22-23 Performance
As outlined in Attachment A, TSJ and the City collaborated to develop performance targets for FY 22-23 informed by national industry trends and local indicators, which also inform TSJ’s sales and marketing strategies. While the Convention Center events resumed in August 2021, the recovery from COVID-19, compounded by local industry trends, has impacted convention center bookings. TSJ is rebuilding and diversifying its portfolio of convention business as well as refocusing its CVB marketing strategies on travel trends. While unaudited, TSJ reports meeting five of its six performance targets in the first half of FY 22-23, except for future hotel room nights booked.
FY 22-23 Sales and Marketing Activities
In addition to the performance metrics, TSJ will present to the Committee highlights of its yearto-date sales and marketing activities in FY 22-23, 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 continues to target 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 with the goal of meeting the Council-approved performance goals.
TSJ will discuss the highlights of the attached presentation at the Committee meeting
COORDINATION
The Team San Jose semi-annual update was developed in coordination 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.
ATTACHMENTS:
Attachment A: CEDC TSJ March FY 22-23 Semi-Annual Report