City Council and Authorities Concurrent
October 22, 2024

Discover Santa Clara® FY 2023/24 Annual Report Page 2 of 56 FY 2023/24 Annual Report

THINK BIG. LOOK FORWARD. September 24, 2024

Santa Clara
Tourism Improvement
District

Discover Santa Clara® FY 2023/24 Annual Report Page 3 of 56

TABLE OF CONTENTS
SILICON VALLEY/SANTA CLARA DMO, INC. BOARD OF DIRECTORS ............................... 4 LETTER FROM THE CEO ....................................................................................................................................... 5 DISCOVER SANTA CLARA® CULTURE STATEMENT ........................................................................ 6 ORGANIZATIONAL SUCCESS: TEAM ACHIEVEMENTS & INDUSTRY ACCOLADES . 6 FISCAL YEAR 2023/24 ACCOMPLISHMENTS...................................................................................... 6 Convention Sales, Incentives and Services .......................................................................... 6 Marketing & Communications ....................................................................................................... 11 Administration and Operations ................................................................................................... 17 BOUNDARY ................................................................................................................................................................ 20 ENHANCEMENTS, INITIATIVES, AND FUTURE FOCUS ..................................................................21 FY 2023/24 FINANCIALS.................................................................................................................................. 26 KEY PERFORMANCE INDICATORS (KPIs) ............................................................................................ 27 COST .............................................................................................................................................................................. 30 ASSESSMENT ............................................................................................................................................................ 32 SURPLUS AND OTHER FUNDING ................................................................................................................. 34 Appendix A – FY 2023/24 Financial Report .................................................................................... 35 Appendix B – FY 2024/25 Operating Budget ................................................................................ 40 Appendix C – Assessed Businesses ..................................................................................................... 43 Appendix D – Visual Gallery of Sales & Marketing Success .............................................. 44

Discover Santa Clara® FY 2023/24 Annual Report Page 4 of 56

SILICON VALLEY/SANTA CLARA DMO, INC. BOARD OF DIRECTORS

Catherine Lentz
Chair
Forty Niners Stadium
Management Co.

Kelly Carr
Vice Chair / Treasurer
OVG360

Christine Lawson
Secretary/Ex-Officio
Discover Santa Clara®

Chuck Baker
Ex-Officio
City of Santa Clara

Nadine Nadar
Board Member
City of Santa Clara
Barb Granter
Board Member
California’s Great America

Lorne Ellison
Board Member
Levy Restaurants

Erin Henry
Board Member
Hyatt Regency Santa Clara

Billy Mendez Moreno
Board Member
Delta Hotel,
Santa Clara – Silicon Valley

Discover Santa Clara® FY 2023/24 Annual Report Page 5 of 56

LETTER FROM THE CEO

On behalf of the entire Discover Santa Clara® team, I am proud to present our Annual Report for FY 2023/24. Reflecting on this past year, I am filled with pride for the progress we have made, despite navigating a landscape marked by evolving challenges and heightened competition.

Our efforts to reintroduce Santa Clara as a premier destination for meetings, conventions, and events have shown significant promise. By focusing on building robust relationships and securing strategic partnerships, we have successfully positioned our city to seize key opportunities in a highly competitive market. This year, we not only expanded our team but also strengthened our strategies to ensure Santa Clara continues to rise as a vibrant and dynamic destination.

Among our key accomplishments, we successfully secured multiple P2 citywide events that will drive future economic impact. Our sales and marketing teams have worked tirelessly to elevate Santa Clara's profile, resulting in strong lead generation and event bookings. We also launched the ambitious Omnichannel Marketing Ecosystem Project, which will lay the foundation for our long-term marketing and communications efforts. This initiative is set to transform how we engage with visitors and stakeholders, further solidifying our city’s standing on the national stage.

As we look ahead to FY 2024/25, our goals are clear. We will continue to cultivate strategic partnerships, optimize our sales processes, and enhance our marketing initiatives to drive further growth. Our focus will remain on delivering high-impact results for our partners, stakeholders, and the Santa Clara community. We will also intensify our preparations for the world-class events, Super Bowl LX and FIFA World Cup, which our city will host in 2026.

I extend my heartfelt gratitude to our Board of Directors, SCTID hotels, OVG, Levy, city partners, and most of all, to the entire dynamic Discover Santa Clara® team for their unwavering passion, support, moxie, and dedication. Together, we are forging a path of sustained success, ensuring that Santa Clara remains a destination of choice for years to come.

Sincerely,
Christine Lawson
CEO

Discover Santa Clara® FY 2023/24 Annual Report Page 6 of 56 DISCOVER SANTA CLARA® CULTURE STATEMENT

Culture Statement Philosophy
In FY 2023/24 the team came together to create a culture statement that reflects our company/team identity and to serve as a compass for each team member to follow individually and collectively. Our culture statement is something that we can reference in how we work together and use to ensure that all that we do is in alignment with our core DNA as a team and organization.

Culture Statement
At Discover Santa Clara®, we foster a currency of trust, integrity, and unity as part of our shared team, partner, and customer journey. We are committed to work being a blend of hustle and fun, fueled by a dedication to high-performance and a belief that experimentation is the secret sauce for innovation. Personal accountability, authenticity, and feedback guide our actions. Our sense of community extends beyond the four walls of our office to include our partners, clients, and our communities.

ORGANIZATIONAL SUCCESS: TEAM ACHIEVEMENTS AND INDUSTRY ACCOLADES • CEO honored as being one of the Top 100 Women of Influence of 2024 in Silicon Valley by the Silicon Valley Business Journal.
• CEO presented with the “Visionary Leader” award from Smart Meetings. • CEO participated in the annual Future of Santa Clara event panel. o Participated with representatives from the Bay Area Host Committee, Silicon Valley Central Chamber, Levi’s® Stadium, and The Earthquakes.
• CEO became a Board Circle Level Member of the U.S. Travel Organization. • Director of Marketing named one of the 40 Under 40 2024 recipients by the Silicon Valley Business Journal.
• Director of Marketing was asked and participated in the Silicon Valley Business Journal’s Annual Mentorship Monday.
• Director of Marketing was invited to join the Board of Directors for Santa Clara’s Triton Museum.

FISCAL YEAR 2023/24 ACCOMPLISHMENTS BY PROGRAM

Convention Sales, Incentives and Services

This fiscal year marked a pivotal chapter for the Discover Santa Clara® (DMO) Sales Team, as we solidified our structure with the strategic additions of a Director of Sales and a Sales Manager.

Despite the ongoing search for an additional Sales Manager, the team's transformation enabled the development and execution of a focused sales plan that positions Santa Clara as a premier destination for meetings and events.

Discover Santa Clara® FY 2023/24 Annual Report Page 7 of 56 Our concentrated efforts on client engagement, attendance at high-profile tradeshows, securing key partnerships, in addition to other sales initiatives laid a robust foundation and have set the stage for sustained growth and success.

Optimization of Sales Structure

• Successfully onboarded and oriented our new Director of Sales, Luz Chatman, who assumed the role on June 26, 2023, and Sales Manager, Sherry Bastani, who joined on September 18, 2023. Both seamlessly integrated into our team through comprehensive sessions with the DMO, Santa Clara Convention Center (Convention Center), SCTID Hotels, and partners, ensuring strong alignment for enhanced collaboration and productivity. • Appointed Marwa Abubakr, who was previously working with the DMO in a temporary capacity, as our full-time Manager of Data & Strategy on September 1, 2023. In this role, she oversees the CRM system and provides strategic insights, enhancing data-driven decision- making and optimizing efficiency for the Sales and Marketing teams. • In May 2024, our Director of Sales transitioned to San Francisco Travel. Consequently, we conducted a thorough search for a qualified replacement and have successfully identified a highly pedigreed candidate with prior DMO experience who will assume the role in July 2024.
• Continue interviewing candidates for the open Sales Manager position, which has been carried over to the FY 2024/25 budget. This additional role will enhance the Sales Team's strength and increase our capacity for client engagement and lead generation. • A strategic sales deployment plan and lead management process were developed to engage key and target markets, intended to drive business to Santa Clara while strengthening local sales efforts for nearby accounts. This initiative focuses on market segments such as technology, banking, and associations, successfully increasing business generation, enhancing market penetration, and raising awareness to benefit the city and its partners.

Strategic Industry Tradeshow & Conference Engagement

• The team strategically planned and actively participated in 20 important industry tradeshows and conferences during FY 2023/24. These events were selected to target crucial market segments for Santa Clara, including corporate groups, meetings, state and national associations, and the sports sector. Some of the notable shows attended include:
o TEAMS in Florida: Focused on the sports market.
o IMEX America in Las Vegas: The largest groups and meetings show in the U.S., encompassing multiple market segments.
o Helms Briscoe ABC Tradeshow in Las Vegas: Targeting group and meeting planners. o Meeting Planners International (MPI) Tradeshow: Catering to high-profile meeting planners.
o Holiday Showcase in Chicago: Targeting the national association market. o CalSAE’s Holiday Spectacular: Focused on the state association market.

Discover Santa Clara® FY 2023/24 Annual Report Page 8 of 56 o Connect Spring Marketplace: Targeting association and corporate meeting planners.
o Destinations International’s CEO Summit in Boston: Offering networking, educational seminars, and speakers addressing tourism trends.

The team’s diligent preparation for these shows involved coordinating booth displays, scheduling client appointments and the collaboration of Sales and Marketing to create a unified set of promotional materials and social media posts to generate pre-show buzz.

This encompassed designing the booth layout, creating attention-grabbing sales banners, crafting market-specific sales sheets, developing client blogs, sending targeted pre/post-show emails, and organizing client giveaways to elevate our event presence and enhance post-event engagement.
• CEO and Director of Sales participated in key industry conferences, including the Destination International Annual Convention in Dallas and the Smart Meetings Conference in New York, expanding networking opportunities, gaining valuable industry insights, and increasing exposure for the DMO.
• Participated in client networking events, including NY Meet Sales Mission in partnership with SF Travel (February 2024), and MPINCC ACE Conference in San Francisco strengthening client relationships, and showcasing Santa Clara to key stakeholders. • Director of Sales attended the NorCal MPI reception in San Francisco, networking with new board members and strengthening industry connections.
• CEO and members of the Marketing team attended the Visit California Outlook Forum (March 2024) in Palm Springs. Visit California is the DMO for the state and provides insight into co-op opportunities and key tourism and economic trends. Attendance enabled us to enhance our engagement and exposure for Santa Clara and its partners. • Fiscal year-over-year lead generation from the DMO Cvent lead portal grew by 10% in FY 2023/24, resulting in 148 high-quality leads delivered to our partner hotels, OVG, and Levy.

Notably, P1 event leads increased by 263%, jumping from 8 to 29, while P2 leads saw a 56% increase, growing from 18 to 28. These gains are a direct result of our strategic sales and marketing initiatives.

Strategic Alliances, Client Engagement, and Industry Leadership

• Formed preferred sales and resource partnerships to support boosting city exposure, qualified lead generation, and enhancing access to client databases, events, and marketing opportunities.
o ConferenceDirect,
o HelmsBriscoe,
o U.S Travel Association,
o San Francisco Travel,
o Professional Convention Management Association (PCMA).

Discover Santa Clara® FY 2023/24 Annual Report Page 9 of 56 • Partnered with Levi’s® Stadium Event Services team.
o CEO collaborated with Director of Levi’s® Stadium Event Services, Catherine Lentz, in conducting a strategic team meeting to identify opportunities for joint client events and lead exchange, enhancing partnership and client penetration. o Collaborated on joint North America Trailer Dealers Association (NATDA) client event, enhancing exposure and lead generation for Santa Clara. The event generated four leads for the DMO as a result.
• To maintain prospecting momentum during the vacancy of our Sales Manager position, we partnered with Baronfeld Consulting Group in February 2024. This collaboration significantly boosted our outreach, connecting with 7,800 clients and uncovering 80 promising group opportunities. Through weekly progress calls, we requalified previous accounts and built a robust database of over 600 target accounts for future business.

Given the partnership's success, we will continue working with Baronfeld Consulting Group through FY 2024/25.
• Secured an agreement with ZoomInfo for targeted sales prospecting, enhancing lead generation capabilities with access to verified contact information and advanced segmentation tools, enabling targeted outreach to key decision-makers. The tool enables the team to search and segment as follows:
o By job title and function,
o By company type and industry,
o Narrow in on specific company locations.
• The CEO engaged in several site inspections alongside NFL, FIFA, and Bay Area Host Committee (BAHC) team members to prepare for Super Bowl LX and the FIFA 2026 Games.

The objective was to secure guestroom blocks with our SCTID partner hotels and establish Santa Clara as a premier destination for major international events. • Conducted multiple high-profile site inspections with potential clients to secure P1 and P2 groups, demonstrating Santa Clara’s capacity to host major events and attracting significant business opportunities.
• Coordinated a successful client breakfast event with Visit Salt Lake City, fostering valuable partnerships and showcasing Santa Clara to ten prominent corporate meeting planners, resulting in potential new business opportunities.
• Hosted the Bay Area Travel Writers Group in February 2024 at the Convention Center, resulting in positive media coverage and articles that enhanced Santa Clara's visibility and reputation, while effectively showcasing the city’s attractions to top local consumer travel writers.
• CEO joined panelists from the Bay Area Host Committee, Levi’s® Stadium, the Chamber of Commerce, and the Earthquakes at "The Future of Santa Clara" event to discuss Super Bowl 60 and FIFA 2026.
• The Sales Team collaborated with Team San Jose for a meeting with the San Jose Sports Authority to build relationships and explore future business opportunities. • CEO and Director of Marketing presented to the Silicon Valley Central Chamber of Commerce Board of Directors meeting.

Discover Santa Clara® FY 2023/24 Annual Report Page 10 of 56 • The CEO met with the CEO of the Silicon Valley Central Chamber of Commerce to establish rapport and explore ongoing collaboration strategies to maximize opportunities for the City.
• Director of Sales, provided comprehensive overview of the DMO at the 2023 Annual San Francisco Travel Sales Meeting, showcasing the destination and our new partnership. • The CEO and Marketing team attended Visit Oakland's Restaurant Week Industry Night Kick-off Event, gaining valuable networking opportunities, including establishing a partnership with Vibemap (Refer to Marketing section, page #11), and gathered insights for planning our own Restaurant Week in the future.

Data-Driven Strategies and Sales Process Enhancement

• Acquired Cvent BI Report Stack to gain deeper insights into primary business segments, group lead statistics, and the competitive landscape, supporting more informed decisions regarding resource and budget allocation.
• Developed a Business Development Fund Scoring Matrix for systematic fund allocations, ensuring fair and strategic distribution of resources to citywide groups, optimizing return on investment.
• Collaborated with the Marketing Team to improve the DMO’s Sales Pitch Deck, enhancing presentation quality with the goal of ensuring delivery of a compelling and consistent message to potential clients.
• Collaborated with our former consultant, Jones Lang LaSalle (JLL), to perform a CRM and Sales File Audit for both the DMO and the Convention Center. This audit was conducted to assess the effectiveness and compliance of existing procedures while identifying opportunities for enhancing customer file management.

SCTID Hotel Support
• Bi-monthly DMO and Partner Hotel Director of Sales Meetings. Hosted meetings where the DMO shared updates on current activities, strategies, and future plans. These sessions have been highly productive, allowing us to present trends and data gathered from industry tradeshows and collaborate on innovative ways to secure business for Santa Clara. • Monthly SCTID General Manager Meetings. SCTID meetings with hotel partner General Managers, like the Director of Sales meetings, provide a platform to report on DMO activities and future focus. The goal is to foster more dynamic discussions on partner hotel needs and strategies that will enhance economic impact for the city. • Client Site Inspections. Collaborate with partner hotel sales teams to conduct on-site inspections for both current and potential groups, including arranging accommodations at our hotels to showcase the properties. This fosters a unified partnership and facilitates strategic discussions on the best approach to securing new business.

Discover Santa Clara® FY 2023/24 Annual Report Page 11 of 56 Marketing & Communications
This fiscal year, marketing efforts have made significant strides in establishing the city as a vibrant and sought-after destination. Throughout the year, the team launched transformative initiatives that capture Santa Clara's essence, strategically supporting sales efforts and celebrating the dynamic businesses and events that define the city's appeal.

Notably, we have successfully initiated the Omnichannel Marketing Ecosystem Project, including the selection of Madden Media as our marketing partner, and have made substantial progress in areas such as strategic positioning and branding, content production, SEO enhancements, website development, and the creation of a new Visitor's Guide.

Our achievements in content marketing, social media, and public relations have been instrumental in positioning Santa Clara as a premier destination, showcasing our collaborative efforts with key stakeholders and partners. As the fiscal year concludes, we remain prepared and enthusiastic about building on these successes in the months ahead. • Omnichannel Marketing Ecosystem Project
The Omnichannel Marketing Ecosystem project marks a pivotal initiative for the DMO. After an extensive RFP process, Madden Media was selected as our marketing partner, and following the Board of Directors' ratification, we officially launched this project on March 19, 2024. The partnership is focused on developing a comprehensive marketing strategy that includes a brand positioning meeting, creating a library of rich photography and videography, a website redesign, and the creation of the first ever Santa Clara Visitors Guide, all designed to engage and inspire potential visitors. Madden Media has conducted extensive stakeholder research, including a Santa Clara immersion trip, and leveraging analytics tools like Google and Adobe Analytics to refine our strategic direction. To ensure a rich and dynamic online presence, we are integrating VibeMap with our Simpleview CRM to automate the update of business and event listings, making our website a vital resource for visitors. This project is poised to elevate Santa Clara’s brand, ensuring an impactful digital footprint that resonates with our audience.

o Positioning Meeting. Hosted a positioning meeting with a diverse group of attendees to unveil the initial draft of the positioning statement and brand campaign.

Feedback from stakeholders was positive and significantly influenced the final deliverables. Madden Media completed and delivered the positioning statement, brand voice, headlines, taglines, sample ads, and elevator pitches for the DMO’s use to effectively represent our destination and business. (Refer to Appendix item O1). o Photography and Videography. Madden Media conducted an asset review of the DMO's existing photos and identified a need for additional lifestyle images. A comprehensive photo and video shoot was completed, involving location selection, talent sourcing, and wardrobe planning. The shoot spanned two days and included key locations such as K1 Speed, Great America, and Santa Clara Square, among others (Refer to Appendix item O2).

Discover Santa Clara® FY 2023/24 Annual Report Page 12 of 56 Additionally, a one-day drone shoot captured aerial footage of prominent sites like the Santa Clara Convention Center and Great America Parkway. o Search Engine Optimization (SEO) Audit and Optimization Strategy. The Madden Media SEO team conducted a thorough performance review and audit of the DMO’s website, leading to optimization recommendations and new content plans. They provided SEO training to the DMO Marketing team, introducing tools like Google Natural Language AI for better content creation (Refer to Appendix item O3). o Website Redesign. The DMO and Madden Media developed a comprehensive website brief outlining key goals and objectives, leading to a finalized Statement of Work (SOW). A layout and wireframe were approved, guiding the website's development. Additionally, the Design team is creating an illustrated Santa Clara Neighborhoods map with interactive features for use online and in the Visitor’s Guide (Refer to Appendix item O4).
o Visitor’s Guide. The development, production, and distribution of the Visitor's Guide are on track, with a finalized schedule and editorial content focusing on Silicon Valley Tech Tours, The Taylor Swift Effect, local neighborhoods, and Super Bowl LX and FIFA World Cup in 2026. The distribution plan targets key locations, including all 23 California Welcome Centers and major airports like Oakland, San Jose, and Las Vegas, with special drops to 146 San Jose/Santa Clara hotels and the 11 SCTID hotels.

The advertising campaign has been launched, featuring a finalized rate card and monthly in-market meetings with prospective advertisers (Refer to Appendix item O5).

• Content Marketing Update
This fiscal year, our LinkedIn, Facebook, and Instagram channels collectively garnered an impressive 6,521,553 impressions, with 4,847,821 of those coming from organic efforts. The marketing team leverages these platforms, alongside our blog and email marketing, to communicate diverse messaging and campaign objectives as noted below. o Instagram. Our Instagram strategy targets leisure travelers by showcasing Santa Clara’s top restaurants, hotels, attractions, and events through a mix of organic and curated content from local creators and influencers. Over the past fiscal year, our followers grew by 216% from 4,432 to 14,009, with 4,748,940 impressions across 186 posts. This content garnered 381,089 interactions, including 195,216 likes, 49,553 saves, 54,685 comments, and 81,635 shares. To build on this success, we will continue leveraging influencer partnerships and focus on creating engaging, shareable content (See Appendix items C1).

LinkedIn. LinkedIn is a key channel for the DMO targeting tourism and travel professionals, particularly meeting and event planners. Our content is tailored for planners and partners, highlighting key events, Santa Clara travel trends, and office culture, while featuring our staff and industry partners at various conferences.

The DMO’s LinkedIn presence has seen remarkable growth, with followers increasing from 281 to 1,198—a 326% rise. With over 121 posts, the account garnered 207
comments, 82 reposts, and 66,400 organic impressions, along with 1,287,043 sponsored impressions, totaling 1,353,443 impressions.

Discover Santa Clara® FY 2023/24 Annual Report Page 13 of 56 Organic content performed strongly, achieving 7,102 clicks with a 6.20% Click-through rate (CTR) and a 10.60% engagement rate, far surpassing the industry average of 1.1%.

These metrics reflect our content's strong resonance with the audience, driving significant interaction and traffic.
o Facebook. Our Facebook strategy, blending LinkedIn's professional focus with Instagram's appeal to leisure travelers, has achieved exceptional results, increasing followers by 13,768%, from 22 to 3,049. With 63 posts, the page generated 1,222 reactions, 85 shares, 18,596 clicks (including 8,334 link clicks), and 419,170 total impressions (32,481 organic and 386,689 paid). The average engagement rate of

5.30% far surpasses typical Facebook benchmarks. The successful blend of organic and paid content has driven strong engagement and reach. o Email Newsletter. This fiscal year, we expanded our email list from 4,432 to 13,736, representing a 210% increase. Through 24 targeted email newsletters, we sent 142,000 emails (139,750 delivered), reaching an 11.77% open rate and a 4.11% click-to- open (CTO) rate. These campaigns effectively engaged our audience, promoted Santa Clara as a premier destination, and supported tradeshow initiatives by targeting meeting and event planners. Our strategic approach has strengthened connections with past and potential visitors, laying a strong foundation for future growth and continued promotion of Santa Clara.
o Social Media Influencer Parties. The DMO successfully collaborated with social media influencers leading to the launch of organized Influencer Parties to enhance our reach and exposure. Introduced toward the end of the fiscal year, these gatherings were focused on strengthening relationships with local social media influencers and increasing awareness of our hotel partners, aligned with specific campaign goals.
o Hilton Influencer Party (April 2024). Hosted a country-themed influencer event with Hilton Santa Clara, coinciding with Luke Combs' concert at Levi’s® Stadium.

Influencers promoted Hilton’s Tailgate on event days, generating over 170K impressions, 5.5K likes, 1K comments, and 1.5K shares from 33 posts, demonstrating strong audience engagement. This success established a valuable influencer pipeline for future projects, ensuring ongoing promotion for Santa Clara (Refer to appendix item C2).
o Supported Marketing Efforts for Avatar Hotel Grand Opening (June 2024).

Supported the Avatar Hotel’s Grand Opening by collaborating with its corporate team to highlight key differentiators, drafting a press release, creating a popular Instagram Reel, and publishing a blog shared on LinkedIn and via email.

The DMO invited nine influencers, who generated nine Instagram reels, resulting in over 49K impressions, 810 likes, 301 comments, and 68 shares, driving significant engagement and boosting exposure for the hotel.

Discover Santa Clara® FY 2023/24 Annual Report Page 14 of 56 o Blogs. The Marketing team developed and published 32 blogs in the fiscal year and this content is among the best-performing on our website, driving significant traffic (Refer to Appendix item C3).

According to Google Analytics, the "Business Travel Guide Blog" is our top-viewed page with 9,614 views, followed by the "Events in Santa Clara" page at #4 with 4,481 views, "What’s New in Santa Clara" at #7 with 2,526 views (Refer to Appendix item C4).

Examples of Blog Content Produced:
• Monthly Event Roundup’s.
• Venue Hunting Demystified: The Event Planner's Playbook. • Santa Clara Business Travel Guide.
• IMEX 2023 Unleashed: Top 10 Tips to Conquer the Conference Chaos (Sales Tradeshow).
• TEAMS Conference: Our Top 3 Pre-Conference Game Plays (Sales Tradeshow). • 5 Athletic Facilities in Santa Clara You Might Not Know About! • Silicon Valley Tech Tour.
• Santa Clara Art Trail: Murals in Santa Clara.
• Santa Clara Getaway: A Family's Two-Day Itinerary.
• Santa Clara: A Host City for FIFA World Cup 2026.
• Avatar Hotel Santa Clara Unveiled.
• Discover Volaré Studios.
• Spooky Season in Santa Clara.
• Mexican Food Trail 2024.
• Savoring Santa Clara: Lee’s Sandwiches.
• Savoring Santa Clara.
• Santa Clara Korean Food Trail.
• AAPI-Owned Restaurants.
• Beyond Music: The Economic Symphony of Swift and Beyoncé's Tours in Santa Clara.

• SCTID Hotel Support

The DMO executed a comprehensive marketing strategy, including social media collaborations, influencer partnerships, and event activations. Highlights include Instagram collaborations and influencer engagements, which significantly boosted visibility and engagement for our hotel partners. Our content consistently outperforms that of the hotels, offering greater exposure.

Discover Santa Clara® FY 2023/24 Annual Report Page 15 of 56 Key initiatives included walkthrough videos, influencer-driven reels, and special activations for sporting and concert events at the AC, Avatar, Delta, Element, Embassy Suites, Hilton, Hyatt Centric, Hyatt House, Hyatt Regency, and Marriott Hotels. We also supported our 11 SCTID hotels with Public Relations (PR) efforts, including crafting and distributing a press release about Avatar Santa Clara to our media contacts, along with blog features and newsletters to enhance their visibility.

Examples of SCTID Hotel Support:
• AC Hotels. Received support through a hotel walkthrough video, Levi’s® Stadium - themed activations, and a 49ers Deebo Samuel signed helmet giveaway. • Element Hotel. Featured a Beyoncé-themed hotel activation. • Embassy Suites. Created hotel walkthrough video.
• Hilton Santa Clara. Was featured in a hotel walkthrough video and multiple Hilton TailG8 videos from various Levi’s® Stadium events, including performances by Ed Sheeran, Luke Combs, Beyoncé, and Taylor Swift.
• Hyatt Regency. Showcased the poolside staycation experience with influencer couple @thethicks, featuring their accounts @keziahbeautyco and @djthick. • Hyatt Centric. Created hotel walkthrough video.
• Hyatt House. Created hotel walkthrough video.
• Marriott Santa Clara. Highlighted the property through a walkthrough video showcasing its amenities, an Instagram reel promoting the holiday drink menu, and influencer support featuring reels of guest experiences.

• Convention Center and Levy Marketing Memorandum of Understanding (MOU). The DMO fulfilled its MOU for the fiscal year by delivering key marketing support for both businesses.

Project management and support included an MOU Project Update Log, a brochure for Levy's Teaching Kitchen, an escalator wrap for the Hydroponic Garden, and signage to enforce the non-outside food and beverage policy for the Convention Center. The DMO also promoted OVG's FrostyFest with a sizzle reel, targeted ads, and live event coverage.

• PR and Communications Achievements

o Silicon Valley Business Journal (SVBJ) | The Future of Santa Clara.

CEO Christine Lawson participated in the annual Future of Santa Clara event, which received extensive coverage in both print and digital editions of the Silicon Valley Business Journal. She spoke alongside representatives from the Bay Area Host Committee, Silicon Valley Central Chamber, Levi’s® Stadium and The Earthquakes (Refer to Appendix item PR2).
o Silicon Valley Business Journal (SVBJ) | Women of Influence. CEO Christine Lawson was honored as one of Silicon Valley's 100 most Influential Women, with recognition in both print and digital editions. To commemorate this recognition, we placed an advertorial in the Women of Influence issue, showcasing the DMO’s mission and achievements (Refer to Appendix item PR1).

Discover Santa Clara® FY 2023/24 Annual Report Page 16 of 56 o San Jose Mercury News | This Silicon Valley City has been named the “Swiftie Capital of the USA.” Santa Clara has been dubbed the "Swiftie Capital of the USA" by Casino.org, based on an analysis of Taylor Swift’s Eras Tour cities. The ranking considered Google searches, TikTok posts, and Swift-themed events. The San Jose Mercury News featured interviews with Mayor Lisa M. Gillmor and CEO Christine Lawson in their coverage of this accolade (Refer to Appendix item PR3). o Levi's® Stadium Concerts. Top-notch concert acts like Taylor Swift and Beyoncé drew substantial media and public interest, with Taylor Swift being named the honorary mayor and Beyoncé receiving the city's first-ever key.

To leverage this, the DMO partnered with the City to craft a compelling narrative and manage interview requests, resulting in widespread favorable media coverage. These included interviews featuring CEO Christine Lawson on major networks such as ABC7, KTVU2, Mercury News, CBS Bay Area, and others.
o Bay Area Travel Writers Meeting. CEO Christine Lawson secured Santa Clara as the host location for the February 2024 Bay Area Travel Writers Meeting of 15 consumer journalists.
o The Mercury News | Monthly Insights & Indicators Column. CEO Christine Lawson was featured, showcasing Santa Clara.
o The Mercury News | Local fans sack 49ers broadcasts for featuring shots of San Francisco instead of Silicon Valley. CEO Christine Lawson provided insights for a Mercury News article on the use of San Francisco b-roll footage during 49ers broadcasts instead of Silicon Valley
o Smart Meetings Magazine | Smart Moves. Sherry Bastani's appointment as Sales Manager was highlighted in Smart Meetings Magazine's "Smart Moves" section, both in print and online.

• Sales Collateral and Tool Development
o DMO Tradeshow Banners and Booth Décor. The Sales & Marketing Team collaborated to design the Discover Santa Clara® booth décor, capturing the vibrant essence of Santa Clara for key audiences.
o 2D Floor Plan Update and Capacity Chart. We improved our floor plans by correcting inaccuracies and incorporating detailed capacity chart data to make them more valuable for event planners.
o Sales Pitch Deck. Revamped our presentation, replacing stock imagery with high quality images of Santa Clara and strategically highlighting our key selling points. o Hotel One-Sheet. Developed a one-page sales tool containing vital details about our 11 SCTID hotels. It serves as a printed handout for trade shows and a digital version for event planner proposals, allowing customization for specific events. o Event Sales Presentation Folder. Received 5,000 copies of our Event Sales Presentation folder, detailing Santa Clara, the Convention Center, and local venues. It will be used for client proposals and is also available digitally for event planners.

Discover Santa Clara® FY 2023/24 Annual Report Page 17 of 56 o Sports Event Planning Guide. Received 2,500 copies of the Sports Event Planning Guide, to be used at events like the TEAMS Conference and as an addendum for sports planners. It highlights Santa Clara's top athletic amenities, including those at Santa Clara University, Mission College, Youth Soccer Park, Reed & Grant, and the Convention Center.
o DMO Logo ’ed Promotional Items. Designed and built an inventory of various promotional items for client gifts and tradeshow giveaways. Some examples of these items include pens, sports caps, notebooks, and candles (Refer to Appendix item E1).

Administration and Operations

The initiatives undertaken in FY 2023/24 not only reinforced our commitment to effective administration and operations for the DMO, but also positioned us for greater and more effective collaboration and success in the market. While there is still room to strengthen our operational foundation, we are well-prepared to continue evolving in this critical area.

• DMO Culture Statement. The team collaborated to create a culture statement that embodies the essence of the DMO's business philosophy and values. • DMO Reports: Completed and distributed the DMO’s FY 2023/24 Q1 - Q3 Reports to the Board of Directors and SCTID Hotel Partners.
• Annual Report. Completed the FY 2022/23 Annual Report, which was approved by the Board of Directors on August 10, 2023, and presented to the City Council on September 19, 2023.
• FY 2023/24 Budget. Successfully concluded FY 2023/24 with a seamless soft close, expending 82% of the total $3,052,730 budget, resulting in a projected expenditure of $2,505,019.
• FY 2023/24 Team Goals. Role-specific goals were thoughtfully crafted and communicated to each team member, ensuring that everyone is aligned and focused on achieving a diverse set of sales, marketing, and administrative KPIs critical to our organization's success. • FY 2024/25 Operating Budget. The FY 2024/25 Operating Budget was completed and presented to the Board of Directors, receiving approval on May 16, 2024. • Administrative Staffing. The Administrative Services Manager resigned in January 2024.

After filling the role, the new hire resigned after 90 days in June 2024. The search is ongoing to fill this critical position.
• Financial SOPs. Collaborated with Krisch and Company and City representatives to develop comprehensive Financial Standard Operating Procedures (SOPs), which were presented and approved by the Board of Directors in January 2024. These policies are part of a strategic initiative aimed at fostering greater financial independence for the DMO, ultimately allowing the City to transition out of its role as our fiscal sponsor. • Annual Review Process. Partnered with CPS HR Consulting to develop an innovative Annual Review format and process. Executed quarterly reviews and annual reviews which have helped to foster continuous improvement and development within the organization.

Discover Santa Clara® FY 2023/24 Annual Report Page 18 of 56 • Team Incentive Plans. An incentive plan for the Sales Manager role was developed and approved by the Board of Directors in December 2023. This plan was designed to serve as the foundation for creating tailored incentive plans for the Director of Sales and Director of Marketing, aligned with each role's specific goals. These incentive plans were delivered to the team and implemented in February 2024.
• Accounting Firm Transition. The DMO concluded its partnership with ArightCo, previously responsible for accounting services, and established a new partnership with Kirsch & Company for these services. This strategic decision was driven by the desire to leverage Kirsch & Company's broader expertise and more comprehensive service offerings, thereby enhancing our organization's ability to meet its evolving needs and objectives. • Revenue Reconciliation. Reconciled the revenue for 2019 through 2021 with the accounting firm of the Santa Clara Chamber of Commerce and secured approval from the City of Santa Clara for tax preparation and processing.
• Tax Forms and Filing. Reconciled the revenue for 2019 through 2021 with the accounting firm of the Santa Clara Chamber of Commerce and secured approval from the City of Santa Clara for tax preparation and processing by our tax preparers, PP&Co. • 401K Program: Launched and implemented a 401K Program, providing retirement benefits for all DMO staff.
• Corporate Business Credit Cards: Selected Bridge Bank as the preferred partner for acquiring DMO business credit cards for travel and entertainment needs. Transferred the account from Wells Fargo and received Board of Directors approval for the decision on August 17, 2023. This move streamlined financial operations and enhanced expense management.
• Travel & Entertainment Policy (T&E): Drafted and presented a T&E Policy to the Board of Directors, which was approved on September 27, 2023. This policy provided clear guidelines for managing travel and entertainment expenses, ensuring responsible and transparent spending.
• Strategic Offsites: Organized and conducted two Strategic Team Offsites in September 2023 and February 2024. The September meeting focused on team alignment, strategic planning, and goal setting for the upcoming fiscal year, while the February session centered on initial FY 2024/25 budget planning.
• DMO Future Booking Approach and Scope. Multiple discussions were held with the DMO, the new Assistant City Manager, the General Manager of the Convention Center and Levy to strategize on expanding the DMO's efforts to secure P1 and P2 groups, in addition to P3 groups generated through DMO sales initiatives. The goal is to implement this expanded approach in Q2 of FY 2024/25.
• Board Elections: Held DMO Board of Directors elections on October 19, 2023, ensuring strong governance and leadership for the organization, with new members bringing fresh perspectives and expertise.
• DMO City Council Meetings: Conducted one-on-one meetings with the Mayor, and four City Council Members to share DMO strategy, gain their insight and to foster open communication and relationships.
• Amended, renewed, and executed new DMO contracts.

Discover Santa Clara® FY 2023/24 Annual Report Page 19 of 56 • 2026 Special Events Activation Plan: The DMO has developed a draft Super Bowl LX and FIFA World Cup Activation Plan. We will continue refining the plan and preparing a budget for Board of Directors approval, while collaborating with the City of Santa Clara, SCTID hotels, and additional partners over the next 16 months to support execution. • Jones Lang LaSalle (JLL) Partnership. CEO successfully concluded the DMO’s partnership with the JLL consulting group in December 2023.

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BOUNDARY
The Santa Clara Tourism Improvement District (SCTID) will encompass all lodging businesses with ten (10) or more rooms, both existing and future, which are available for public occupancy within a specified portion of the city of Santa Clara. The District’s boundaries, as outlined on the accompanying map, currently include eleven (11) lodging businesses, which are detailed in the Appendix. There are no proposed changes to the SCTID boundaries. One (1) lodging business has undergone a major renovation and is now under new management.

One of our SCTID hotel partners has undergone a change in ownership. The Avatar Hotel reopened in May 2024 as a Tapestry Collection by Hilton property, now located at 4200 Great America Pkwy, Santa Clara, CA 95054.

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ENHANCEMENTS, INITIATIVES, AND FUTURE FOCUS

Specific to strategic progress and future focus, we are proud to report that we successfully achieved nearly all the ambitious enhancements and goals outlined in our FY 2022/23 Annual Report. As we move into FY 2024/25, our initiatives align perfectly with the Management District Plan, with no proposed changes. Our priorities include executing a comprehensive Omnichannel Marketing Ecosystem Project, advancing an assertive client engagement strategy with targeted sales efforts, dynamic tradeshow participation, and impactful client interactions. We will implement high-impact sales and marketing tactics, capitalize on ad hoc opportunities, and strategically position ourselves for the Super Bowl LX and FIFA World Cup in 2026. Our goal is to amplify exposure, drive lead generation, and secure bookings for the city and our partners.

Below are the key highlights and focus areas for FY 2024/25, fully aligned with the Plan's activities and improvements.

Convention Sales, Incentives and Services

• Strengthen Sales Structure and Enablement Processes that Reinforce our Brand Narrative and Build Credibility within the Meeting Planning Community.

We will prioritize promptly filling all approved sales positions while refining sales and enablement procedures that solidify Santa Clara’s position as a premier meeting destination. By enhancing processes aligned with our goals and that showcase our strategic West Coast location, our objective is to make the city more approachable to planners nationwide. Leveraging our team’s expertise and personalized service, we will guide planners smoothly through each stage of the planning process, from initial contact to event completion. This includes, but is not limited to:

o Immediate Acknowledgment of Client Outreach. All client calls and RFP submissions will be acknowledged before the close of business, adhering to our "sundown rule" for timely responses.
o Expedited Proposal Turnaround. Minimum team goal is to deliver requested information and proposals within 48 business hours of receipt, with a target of achieving a 24-hour response time for an even faster client experience. o Immersive Site Inspections & Familiarization Experiences. We will design and deliver unique, immersive site inspections and familiarization trips (FAM’s) that highlight Santa Clara’s distinctive offerings. o Targeted Email Campaigns with Tailored Content. In collaboration with Marketing, we will launch strategic email campaigns with customized content to our key market segments, showcasing Santa Clara’s unique appeal. o DMO Increased Booking Scope. Work with OVG and Levy on crafting proposed increase in DMO scope to book P3 groups in addition to P1 + P2’s.

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• Existing Account Penetration and Preferred Partnership Growth.

Prioritize strengthening relationships with existing accounts and newly established preferred partnerships to unlock and expand new business opportunities. o Optimize CRM and industry tools. Develop a targeted list of companies with high potential for engagement and business conversion.
o Engage Key Contacts. Collaborate with the Marketing Team to craft compelling email campaigns for key contacts, blending creativity with strategic messaging. o Strategic Prospecting. Utilize partnership with Baronfeld Consulting Group to identify, prioritize, and grade top-tier contracts, empowering partnership, and sales teams.
o Cultivate High-Potential Relationships. Build and strengthen connections with a minimum of 10 local/regional accounts poised for group business opportunities. o Strategic Preferred Partnership Conference Participation. Attend both HelmsBriscoe and Conference Direct’s annual conferences to solidify relationships with their preferred customer base, increase lead volume, and expand market presence.
o Promote Value-Added Offers. Launch third-party planner promotions that deliver enhanced value to both planners and end-users.
o Targeted Sales Trips. Execute strategic sales trips to key feeder markets, focusing on high-value corporate, association, and sports segments for the DMO and Santa Clara.
o Build Community. Develop and manage interactive LinkedIn groups for key third-party planners, facilitating ongoing dialogue and sharing relevant Santa Clara updates.
• Development and Implementation of an Aggressive Local and Regional Market Penetration Strategy Plan.

The goal is to cultivate strong relationships with local and regional accounts, securing business and enabling the team to achieve deeper account penetration both nationally and internationally where applicable.
o Map Out Key Local Markets and Accounts. Identify and target key market segments and accounts both locally and regionally that align with Santa Clara's offerings, focusing on those with potential group opportunities. o Leverage Existing Relationships. Enhance and grow relationships with existing local clients by leveraging current partner connections and offering tailored solutions with continuous engagement to foster repeat business and referrals. o Maximize Client Engagement with Strategic Local Events. Host impactful local account presentations and client events to showcase Santa Clara’s offerings, strategically leveraging events at Levi’s® Stadium to maximize exposure. o Offer Exclusive Local Promotions. Design exclusive promotions and/or packages for local businesses to encourage immediate bookings and deepen relationships. • Utilize Strategically Targeted Tradeshows and Sales Trips to Enhance Client Engagement and Collaboration to Drive Exposure and Lead Generation Across all Channels.

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Actively participate in 23 strategically selected tradeshows and conferences in addition to planned sales trips targeting key market segments, maximizing the DMO’s visibility, lead generation and business opportunity influence.
o Coordinated Engagement Strategy. Sales and Marketing will collaborate to implement a unified multi-channel engagement strategy, effectively targeting attendees at every stage—pre-event, onsite, and post-event. o High-Impact Activations. Strengthen our presence at tradeshows and industry events through compelling activations that capture attention and drive engagement.
o Strategic Client Entertainment. Host impactful client entertainment activities during each tradeshow and sales trip to deepen relationships and secure business opportunities.
o Leverage Strategic Partnerships for Amplified Exposure. Deepen established strategic alliances with peer DMOs (e.g., SF Travel, Visit San Jose, and Visit California) and sales partnerships to amplify exposure and extend our reach at tradeshows and conferences, maximizing visibility and impact in key markets. o Optimize Tradeshow Follow-Up. Develop and implement a robust tradeshow and conference follow-up process to ensure that we capitalize on all contacts and opportunities.

• Unified DMO Team Execution of Major 2026 Special Events and Future Community Events Planning.
o Collaborative Finalization of 2026 Special Event Activation Plan. Engage with teams and partners to finalize the DMO’s diverse “Special Event Activation Plan” and budget, centered on executing impactful press communication and strategies for Super Bowl LX and FIFA World Cup 2026, solidifying Santa Clara’s status as a premier global destination.
o Kick-Off Planning for Innovative Community Engagement Events. Begin the planning process for developing and scheduling unique Santa Clara-themed events, such as Santa Clara Restaurant Week, designed to showcase the city’s vibrant offerings and boost both exposure and economic impact. While these events are scheduled for after the 2026 Super Bowl LX and FIFA World Cup, early pre-planning discussions are essential.

Marketing & Communications

• Implement the Omnichannel Marketing Ecosystem Project. o Website Launch. Ensure the new website is fully integrated with the latest SEO practices, including keyword optimization, mobile responsiveness, and streamlined navigation. Perform a soft launch for testing prior to the full implementation.

o Santa Clara Visitors Guide. Develop a comprehensive distribution plan for the Visitors Guide, including partnerships with local hotels, attractions, and digital platforms to maximize reach and impact.

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• Strengthen Strategic Partnerships and Community Engagement. o SCTID Hotel Partner Projects. Collaborate on campaigns that showcase our SCTID hotel partners, measuring success through increased traffic to partner sites and event attendance.
o Sales Support. Create evergreen and tradeshow-specific marketing materials, tailored to the target audience and incorporating the latest trends in digital marketing and event promotion.
o Local Business Engagement. Strengthen and expand partnerships with local businesses, the City, and influencers, positioning the DMO as the primary resource for Santa Clara tourism.

• Optimize Marketing Operations and Reporting.
o Monthly Reporting. Enhance monthly reports with predictive analytics to forecast trends and inform decision-making, including recommendations for adjusting strategies in real-time.
o Budget Management. Establish a continuous budget review process that allows for adjustments based on campaign performance, ensuring all marketing expenses are thoroughly monitored and justified.
o Content Pillars. Leverage established content pillars to ensure all public-facing content aligns with our goals and effectively targets our key markets. o Hire and train a Marketing Coordinator. Define the DMO Marketing Coordinator’s roles and responsibilities, draft a job description, hire, and train a qualified candidate, and support their integration as a high-performing team member.

• Populate Owned Channels with Rich and Relevant Content. o Social Media. Create and post a minimum of two pieces of content, per platform per week.
o Website. Continue developing evergreen trails, itineraries, incorporating content recommendations from Madden Media, prioritizing SEO best practices to enhance discoverability on search engines and AI platforms. o Email Marketing. Maintain the monthly Event Round-Up email to the DMO's full subscriber list, and introduce an additional monthly email featuring blog content, such as trails and itineraries, to further engage and educate subscribers on the destination’s vibrancy.

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Administration and Operations

• Hire strong Business & Operations Manager.

The DMO has faced challenges in securing a steady, qualified candidate for this crucial role. To attract top-tier talent with diverse experience and strong management, organizational, and critical thinking skills, we rebranded the position from Administrative Services Manager to Business & Operations Manager. This role is crucial in solidifying the organization’s operational foundation and driving innovative ideas to improve our processes, systems, and strengthen relationships with partners, business consultants, and the City.

• Creation of DMO Financial Processes.

In partnership with our accounting firm, Kirsch and Company, and City representatives, we developed the DMO’s Financial Policies that received Board of Directors approval in January 2024. These policies establish fiscally responsible processes that position the DMO to ultimately secure custody of the SCTID Assessment Funds. The next step involves creating Financial Standard Operational Procedures (SOPs) to support these policies. With the onboarding of a Business & Operations Manager, we will commence this critical phase.

• Fortify the DMO’s Administrative SOP Framework.

To ensure our DMO remains agile and aligned with the evolving business landscape, we will fortify our administrative SOP framework. This involves a thorough review and update of existing SOPs to meet our current needs, as well as identifying and developing new SOPs that are crucial for enhancing team alignment and effectiveness.

• Explore and Integrate Vital Systems to Empower and Elevate Our DMO.

To drive greater efficiency and precision in our operations, we will explore and integrate key financial, expense management, and administrative systems. These systems will streamline processes, enhance record-keeping, and provide the foundation for more strategic decision-making. By adopting these vital tools, we will empower our team to focus on impactful work, reduce operational friction, and ensure the long-term sustainability of our DMO.

• Board of Directors Training.

Work with relevant resources to develop a plan aimed to enhance the effectiveness and strategic insight of our Board of Directors through targeted training initiatives, ensuring they are well-prepared to guide and support the organization's mission and growth.

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Contingency

The budget shall continue to include a contingency line item to account for uncollected assessments, if any. If there are contingency funds collected, they may continue to be held in a reserve fund or utilized for other program, administration, or renewal costs at the discretion of the DMO Board. Policies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies from the reserve fund shall be set by the DMO Board.

Contingency/reserve funds may be spent on District programs or administrative and renewal costs in such proportions as determined by the DMO Board. The reserve fund may be used for the costs of renewing the SCTID.

City Administration Fee

The City of Santa Clara shall continue to be paid a fee equal to 2% of the amount of assessment collected to cover its costs of collection and administration which may include but are not limited to staffing costs, legal services, and operational costs for rent, telephone, supplies, postage, and other general office expenses.

FY 2023/24 FINANCIALS

Compared to the forecasted amount of $2.6 million, the SCTID assessment for FY 2023/24 actualized at $3.1 million. The primary objective for our 11 SCTID hotel partners is to return occupancy (OCC) and average daily rate (ADR) to 2019 pre-pandemic levels. According to the composite STR Report for our partner hotels, a year-to-date (YTD) analysis from 2022 to 2023 shows that while occupancy continues to lag, our hotels have made remarkable progress in reclaiming ADR levels comparable to 2019. This ADR recovery is positively impacting DMO assessments.

However, individual corporate travel remains a challenge due to the ongoing hybrid work models prevalent in Silicon Valley. The meetings and events sector are also fiercely competitive.

Negative press surrounding San Francisco has led to declining group forecasts, prompting the SF Travel team to aggressively pursue smaller groups that would typically book locations further down the Peninsula. To attract these groups and fill their larger venues, they are offering business development funds and other competitive incentives, further heightening the competitive landscape.

As of June 30, 2024, the DMO expended 82% of the Operating Budget leaving a balance of $547, 117. While the initial plan expected to utilize the full budget by executing our comprehensive sales and marketing strategies, the full allocation was not fully utilized due to the staggered hiring of team members and the current open sales manager position, which affected our ability to execute all initiatives as outlined in our plan.

Even with remaining funds, the team strategically prioritized sales and marketing initiatives to strengthen our business foundation, enabling us to accelerate our progress.

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This strategic focus was evident in our tradeshow and partnership strategies, the adoption of new tools, and the launch of our Omnichannel Marketing Ecosystem Project, which began in March 2024 and is scheduled for completion by March 2025.

Income Budget Actuals
SCTID Assessment $2,200,000 $3,126,077
Other Revenue $66,000 $66,000

FY 2023/24 Expenditures Budget Actuals Balance

CONVENTION SALES,
INCENTIVES & SERVICES $1,188,331 $861,552 $326,779

MARKETING &
COMMUNICATIONS $818,578 $777,712 $40,866
ADMINSTRATION $935,821 803,234 $132,587
CONTINGENCY $66,000 $0 $66,000
CITY ADMINISTRATION FEE $44,000 $62,522 ($18,522)
TOTALS $3,052,730 $2,505,020 $547, 710

An additional Reserve Fund was created in FY 2021/22 to be used for any large-scale unexpected expenses or emergencies only upon Board of Directors approval. There were no expenses to the Reserve Fund.

FY 2023/24 Expenditures Budget Actuals Balance
RESERVE FUND $1,193,469 $0 $1,193,469

The detailed FY 2023/24 Financial Report is included as Appendix A.

KEY PERFORMANCE INDICATORS (KPIs)
Given the current economic climate and heightened competition—especially with the downturn in group bookings for San Francisco—combined with the staggered hiring of team members and the vacant Sales Manager position, the DMO did not meet its established KPIs for FY 2023/24.

However, it's important to note that a P1 event was successfully secured and actualized within the fiscal year by the OVG sales team, and the DMO booked three P2 events for future years.

Historically, large P1 and P2 groups have not met the Convention Center building spend, and room night commitments outlined in the current Booking Policy. In March 2023, the Board of Directors approved a revised Booking Policy with more accurate guest room and Convention Center spend expectations. However, due to limited data, there is insufficient support for setting concrete group booking goals for the fiscal year. Additionally, a mutually agreed-upon methodology for establishing these KPIs has not been reached between OVG, Levy, the DMO, and the City, raising concerns that the goals may seem arbitrary and unrealistic.

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Looking ahead, the KPIs for FY 2024/25 are set to be double that of the previous year. This ambitious goal represents a cumulative number of P1 and P2 events, along with associated revenue and hotel room nights—levels that have historically not been realized at the Santa Clara Convention Center. The DMO team is committed to building on current strategies to develop accounts and striving to meet these elevated targets.

Furthermore, leadership from the DMO, OVG, Levy, and representatives from the City have discussed broadening the DMO sales team's booking scope to include new P3 events driven by direct sales efforts and deeper account penetration. These P3 groups are the sweet spot for the Santa Clara Convention Center and our partners, and this additional sales focus will enhance our overall event mix and maximize revenue potential.

Silicon Valley/Santa Clara DMO Inc.

Performance Measures
2023/24
Target
2023/24
Actuals
2024/25
Target

1. Event Mix (Consumed)
Percent of P1 Events 0.5% 0.5% 1.0%
Number of P1 Events 1 1 2
Percent of P2 Events 1.0% 0% 2.0%
Number of P2 Events 2 0 4

2. Number of Definite Events Booked (Booked in the year for future years)
Number of P1 Events 2 0 2
Number of P2 Events 4 3 4

3. Convention Center Gross Revenue (P1 + P2 events) $800,000 $1,076,019 $1,900,000

4. Number of Room Nights Booked (For future years) 4,506 4,380 6.197

5. Number of Room Nights Consumed 2,253 2,622 4,506

6. Number of Weeks Impacted (Consumed) 2 1 2

7. Customer Service Survey Results (Overall satisfaction) 85% N/A 85%

8. Number of Prospects (active) (non-cumulative P1 + P2 events)
140 35 140

9. Economic Impact (Consumed P1 + P2 events) $2,745,582 $1,923,730 $5,491,164

KPI Summary

1. Event Mix. This KPI targets the ideal mix of convention/meeting types (P1–P5) to achieve the best financial and economic outcomes for the city, focusing on event quality over quantity.

The event mix improved with more P3 events YOY and one P1 event during the fiscal year.

The DMO's goal for P1 and P2 events in FY 2024/25 remains consistent, while the number of consumed P1 and P2 events has doubled.

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2. Definite Events Booked. A “definite” event is a future event confirmed with a signed executed Convention Center contract and at least one SCTID lodging business. The goal of one P1 citywide event consuming in FY 2023/24 or the booking goal for future years, one P1 was consumed in the fiscal year and three P2 events have been contracted for future years, all in 2025.

3. Convention Center Gross Revenue. The Convention Center’s Gross Revenue came in higher than expected at $19,204,757. There was one P1 event accounting for $1,076,019 in Convention Center revenue or 5.6%.

4. Room Nights Booked. We achieved 97% of the room nights booked for future year’s goal, amounting to 4,380 room nights booked to a goal of 4,506. The success in achieving the consumed hotel room goals for FY 2023/24 was the result of a collaborative effort between OVG, Levy, and the DMO.

The team exceeded expectations by reaching 116% of the consumed P1 room nights, totaling 2,622, and achieved 97% of the room nights booked for future years, amounting to 4,380 room nights.

5. Room Nights Consumed. The achievement of the consumed hotel room goals for FY 2023/24 was a direct result of the strong collaboration between OVG and the DMO. The team made significant progress in securing business for the Convention Center, which not only drives overnight stays at SCTID partner hotels but also generates substantial revenue.

We surpassed expectations by reaching 116% of the consumed P1 room night goal, totaling 2,622 against a target of 2,253.

6. Number of Weeks Impacted. This KPI reports the number of weeks throughout the year where a P1/P2 event or a combination of events positively impacted Santa Clara’s economy and was above the 700 peak room nights threshold per day for two or more days. In FY 2023/24, there was 1 week impacted to a goal of 2-weeks (50%) with the one P1 group that consumed in the year.

7. Customer Service Survey Results. The customer service platform offers valuable insights for evaluating successes and identifying opportunities in service areas. The DMO score for P1 and P2 events, contributing to the overall goal of 85%, specifically reflects the meeting planner's experience when interacting with the sales team. The customer service survey for the P1 event held this fiscal year was not completed by the client. As a result, the score is marked as "N/A" in the KPI chart above, reflecting the delay in the survey's completion.

8. Prospects. To maintain our momentum despite being down a Sales Manager this fiscal year, we engaged Baronfeld Consulting Group to support our prospecting efforts. We've prioritized cleaning up our CRM, specifically addressing outdated leads that were pending research before the CEO and current team came on board.

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This cleanup effort has tempered our year-over-year (YOY) growth in the number of accounts being researched, but it has resulted in a more refined and accurate list of prospects. At the conclusion of FY 2023/24, our team was researching 277 leads, reflecting a

3.7% increase year-over-year. However, we had 35 active prospects, 18 fewer than at the end of FY 2022/23. Although this represents a 40.9% year-over-year decrease in active prospects, the team is confident that these 35 active prospects are more accurate and present greater opportunities due to the ongoing cleanup of our CRM.

9. Economic Impact. The total economic impact of Convention Center events in the fiscal year was $48,159,223. Of this total amount, $1,923,730 was generated from the one P1 event that consumed in the fiscal year which amounted to 70% achievement against the $2,745,582 goal.

COST

In preparing the FY 2024/25 Adopted Operating Budget, our primary focus over the past fiscal year has been on building a robust team, fostering productive relationships with our partners, reintroducing Santa Clara to the meetings and events market, as well as to the tourism and local community, and crafting a powerful sales and marketing plan. These efforts have laid a solid foundation and generated compelling content tailored to our diverse market segments.

The Santa Clara market is seeing some positive signs of business coming back, although it continues to face significant challenges in rebounding from the COVID-19 pandemic, particularly in the corporate transient segment, where the hybrid work model has hampered a return to pre- pandemic levels. Compounding this issue are the well-publicized challenges in San Francisco, which have led to a sharp decline in their citywide and overall group business. In response, the SF Travel Team and hotel community have launched an aggressive group campaign, offering attractive incentives even for smaller groups—business that would typically go to the Peninsula, including San Jose and Santa Clara.

While we initially planned to utilize our full budget to execute comprehensive sales and marketing strategies, the staggered hiring of team members and the current open Sales Manager position limited our ability to fully implement all initiatives as outlined. As a result, only 82% of the FY 2023/24 budget was expended. Despite this, our team strategically prioritized key sales and marketing initiatives to strengthen our business foundation, setting the stage for accelerated progress. This focus was evident in our tradeshow and partnership strategies, including collaborations with ConferenceDirect, HelmsBriscoe, and U.S. Travel, as well as the adoption of new tools like the Cvent BI Dashboard, ZoomInfo, and Baronfeld Consulting Group.

Additionally, we launched our Omnichannel Marketing Ecosystem Project in April 2024, with completion slated for March 2025.

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Looking ahead, our team is committed to leveraging data analytics, executing our Omnichannel Marketing Ecosystem project, implementing integrated sales and marketing strategies, and using rich, content-driven brand storytelling to deepen customer relationships, showcase our vibrant city, and drive more leads, economic impact, and return on investment. We will also capitalize on the opportunities presented by hosting Super Bowl LX and the FIFA World Cup in 2026.

The DMO’s adopted FY 2024/25 budget reflects a 16.79% increase compared to the FY 2023/24 budget, with strategically allocated spending to guide the DMO toward sustained growth and success.

The full FY 2024/25 Adopted Operating Budget is included as Appendix B.

BUDGETED COST BY PROGRAM FY 2024/25
Adopted
% of Budget
CONVENTION SALES, INCENTIVES & SERVICES $1,711,115 48.0% MARKETING & COMMUNICATIONS $864,246 24.2%
ADMINSTRATION $860,035 24.1%
CONTINGENCY $78,000 2.2%
CITY ADMINISTRATION FEE $52,000 1.5%
TOTAL OPERATING BUDGET $3,565,396 100%

FY 2024/25 Projections
The cost of implementing improvements and activities for FY 2024/25 aligns with the Plan. The overall budget has increased due to the combination of filling vacant positions, expanding the team to execute targeted tactics, and capitalizing on improving business conditions, alongside strategic sales and marketing initiatives designed to sustain the current momentum.

The total Operating Budget for FY 2024/25 is $3,565,396 which includes the estimated SCTID collections for the fiscal year of $2,600,000, $899,396 in carry-over funds from FY 2023/24 and previous years, and $66,000 in other revenue. The categorical breakdown is below. All budget category allocations of estimated SCTID revenue for FY 2024/25 are within the authorized twenty percent (20%) adjustment of the SCTID revenue allocations from the prior year.

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Category % of
Budget
FY 2024/25
Assessment
Estimate
% Change
from
previous
year
Other
Revenue Carryover
FY 2024/25
Operating
Budget

CONVENTION SALES,
INCENTIVES & SERVICES 40% $1,040,000 0% $0 $671,115 $1,711,115

MARKETING &
COMMUNICATIONS 22%
$572,000 2% $66,000 $226,246 $864,246
ADMINSTRATION 33% $858,000 -2% $0 $2,035 $860,035
CONTINGENCY 3% $78,000 0% $0 $0 $78,000

CITY ADMINISTRATION
FEE 2%
$52,000 0% $0 $0 $52,000
TOTALS 100% $2,600,000 $66,000 $899,396 $3,565,396

ASSESSMENT

The assessment rate for the initial year FY 2021/22, was one and one-half percent (1.5%) on gross short-term (30 days or less) room rentals (10 rooms or more). In compliance with the Plan, the DMO’s Board of Directors approved an increase of one-half percent (0.50%) for FY 2022/23 increasing the annual assessment rate to the maximum of two percent (2.0%) on gross short- term room rentals. Based on the benefit received, assessments will not be collected on stays by any officer or employee of a foreign government who is exempt by reason of express provision of Federal law or international treaty. Additionally, assessments will not be collected on stays by any Federal or State of California officer or employee on official business who shall provide one of the following; a warrant or check drawn on the Treasury of the United States; a copy of the official travel orders indicating the issuing governmental agency and the employee’s full name; or, a copy of a letter on the official letterhead of an exempt governmental agency requesting exemption and listing the employee’s name and stating that the stay is for official government business. The dates of occupancy must also be included.

The term “gross room rental revenue” as used herein means: the consideration received, whether or not actually charged by the lodging business, for the occupancy of space in a lodging business valued in money, whether said gross room rental revenue is received in money, goods, labor, or otherwise, including all receipts, cash, credits, and property and services of any kind or nature. A lodging business may provide complimentary non-assessable rooms for employee use, guest satisfaction or charitable purposes (by a qualified 501(c)(3) charity) and a lodging business shall detail all complimentary non-assessable rooms in its regular reporting.

Failure to accurately report complimentary rooms shall result in assessment of the rooms in question. Gross room rental revenue shall not include any federal, state, or local taxes collected, including but not limited to transient occupancy taxes.

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The assessment is levied upon and a direct obligation of the assessed lodging business.

However, the assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. If the SCTID assessment is identified separately it shall be disclosed as the “SCTID Assessment.” As an alternative, the disclosure may include the amount of the SCTID assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing Act, Government Code §13995 et seq. and shall be disclosed as the “Tourism Assessment.” The assessment is imposed solely upon and is the sole obligation of the assessed lodging business even if it is passed on to transients.

The assessment shall not be considered revenue for any purpose, including calculation of transient occupancy taxes.

Bonds or any debt obligation shall not be issued.

Time and Manner for Collecting Assessments
The City will continue to be responsible for collecting the assessment on a quarterly basis or at the close of any shorter reporting period as established by the Director of Finance (including any delinquencies, penalties, and interest) from each assessed lodging business. The City shall make all reasonable efforts to collect the assessments from each assessed lodging business.

The City shall forward the assessments collected to the Owners’ Association.

Penalties and Interest
The SCTID shall reimburse the City of Santa Clara for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent SCTID assessment are sought to be recovered in the same collection action by the City, the SCTID shall bear its pro rata share of such collection costs. Assessed businesses which are delinquent in paying the assessment shall be responsible for paying:

1. Delinquency Interest.

Any lodging business that fails to remit any assessment imposed within the time required shall pay interest as described in subparagraph three below.

2. Penalty for Willful Noncompliance or Repeated Delinquencies.

If the City determines that the nonpayment of any remittance due is due to willful noncompliance or repeated delinquencies, a penalty of twenty-five percent (25%) of the amount of the assessment shall be added thereto in addition to the interest as required by subparagraph three below.

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3. Calculation of Interest.

In addition to the penalties imposed, any lodging business that fails to remit any assessment imposed shall pay interest at the rate of the United States government T-Bills sold at the latest sale prior to the date of the delinquency plus three percent (3%) prorated per month or fraction thereof on the amount of the assessment, exclusive of penalties, from the date on which the remittance first became delinquent until paid.

4. Penalties and Interest Merged with Assessment
Except for the purpose of calculation of interest and penalties, every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the assessment herein.

SURPLUS AND OTHER FUNDING

Surplus / Deficit
The surplus includes SCTID collections that have been carried over from previous years. The total amount of funds to be carried over is estimated at $4,645,426. $671,115 is allocated to Convention Sales, Incentives & Services, $226,246 is allocated to Marketing & Communications, and $2,035 is allocated to Administration for FY 2024/25. Of the remaining funds, $1,426,158 will be placed into a Reserve Fund leaving a balance of $2,319,872 in unallocated funds.

Category Carryover
CONVENTION SALES, INCENTIVES & SERVICES $671,115
MARKETING & COMMUNICATIONS $226,246
ADMINSTRATION $2,035
Reserve Fund $1,426,158
Unallocated $2,319,872
TOTAL $4,645,426

Other Funding
The DMO receives $66,000 in marketing support from two sources: OVG and Levy Restaurants.

OVG, the company appointed by the City of Santa Clara to manage the Convention Center, will contribute $36,000, while Levy Restaurants, the contracted food and beverage provider for groups and events at the Convention Center, will contribute $30,000.

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Discover Santa Clara® FY 2023/24 Annual Report Page 40 of 56 Appendix B – FY 2024/25 Operating Budget

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Appendix C – Assessed Businesses

SCTID Hotel Partner Name Address City, State ZIP
AC Hotel 2970 Lakeside Dr Santa Clara, CA 95054
Avatar Hotel
Tapestry Collection by Hilton
4200 Great America Pkwy Santa Clara, CA 95054
Delta Hotel by Marriott 2151 Laurelwood Rd Santa Clara, CA 95054 Embassy Suites 2885 Lakeside Dr Santa Clara, CA 95054 Hilton Santa Clara 4949 Great America Pkwy Santa Clara, CA 95054 Hyatt House 3915 Rivermark Plaza Santa Clara, CA 95054 Hyatt Regency 5101 Great America Pkwy Santa Clara, CA 95054 Marriott Santa Clara 2700 Mission College Blvd Santa Clara, CA 95054 The Element 1950 Wyatt Dr Santa Clara, CA 95054
Hyatt Centric Santa Clara 3100 Lakeside Dr Santa Clara, CA 95054 TownePlace Suites by Marriott 2877 Lakeside Dr Santa Clara, CA 95054

Discover Santa Clara® FY 2023/24 Annual Report Page 44 of 56 Appendix D – Visual Gallery of Sales & Marketing Success

MARKETING AND COMMUNICATIONS APPENDIX

Omnichannel Marketing Ecosystem Project Appendix
Appendix Item O1: Images and deliverables from Positioning Meeting.

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Appendix Item O2: Curated Images from Photoshoot Selection.

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Appendix Item O3: SEO Site Audit Selections.

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Appendix Item O4: Website Wireframe V2.

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Appendix Item O5: Advertising Rate Card and Visitor’s Guide Page Breakdown.

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Discover Santa Clara® FY 2023/24 Annual Report Page 52 of 56 Content Appendix

Appendix Item C1: Instagram Top Performing Post for Discover Santa Clara®.

Appendix Item C2: Sample Posts from the Hilton Influencer Party.

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Appendix Item C3: Google Analytics Data about Top Performing Pages.

Appendix Item C4: Sample Posts from Discover Santa Clara® Blogs.

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Public Relations (PR)Appendix

Appendix Item PR1: Silicon Valley Business Journal Women of Influence.

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Appendix Item PR2: Silicon Valley Business Future of Santa Clara.

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Appendix Item PR3: San Jose Mercury News.

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Event Sales Tool Appendix

Appendix Item E1