City Council
Report
City Council Meeting: June 14, 2022
Agenda Item: 3.H
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To: Mayor and City Council
From: David Martin, Director, Administration
Subject: Approval of Santa Monica Travel and Tourism Fiscal Year 2022-23 Budget and Work Plan
Recommended Action
Staff recommends that the City Council approve the Santa Monica Tourism Marketing District Fiscal Year 2022-23 Budget and Work Plan.
Summary
Tourism is essential to the City’s economic recovery and vitality. In 2012, in partnership with local hotels, Santa Monica Travel and Tourism (SMTT) established the Santa Monica Tourism and Marketing District (SMTMD). The purpose of the SMTMD is to increase overnight room sales with targeted marketing and promotions. Funding for the marketing programs and activities of the SMTMD are derived from assessments and revenues collected from the hotels operating within the boundaries of the SMTMD. The attached 2022-2023 SMTMD Annual Report (Annual Report) summarizes the SMTMD’s proposed programs and activities for FY 2022-23, including the SMTMD work plan, budget, hotel report, and marketing plan. Staff recommends that Council receive and approve the Annual Report in accordance with the State laws governing tourism marketing districts.
Discussion
Under Streets and Highway Code Section 36650, the Santa Monica Tourism and Marketing District (SMTMD) is required to prepare Annual Reports providing the following information:
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• Any proposed changes to the boundaries of the tourism marketing district or to any benefit zones or classification within the district, • The improvements, maintenance, and activities for that fiscal year, • An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year,
• The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year,
• The estimated amount of any surplus or deficit in revenues to be carried over from a previous fiscal year,
• The estimated amount of contributions to be made from sources otherthan assessments levied pursuant to this part.
In accordance with Section 36650, the SMTMD has submitted its 2022-2023 SMTMD Annual Report (Attachment A), including the work plan and budget for Council approval. The following overview summarizes the proposed expenditures to be funded with SMTMD assessments in the upcoming fiscal year.
SMTMD Reporting Year FY 2022-23
Revenues
Estimated TMD Assessments 5,224,108
Bank Interest 1,800
Total Revenues* $5,225,908
Expenditures
Cost of Programs
Travel Industry Sales 1,428,655
Marketing 1,464,072
Visitor Services
Meetings, incentives, conferences and
exhibitions
66,930
280,000
Client Services 5,000
General and Administrative Services 522,500
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Salaries 1,197,546
Benefits & Payroll Taxes 261,205
Contingency Fund -
Total Expenses $5,225,908
Estimated Carry-over from Previous Fiscal Year $0
Estimated In-Kind Contributions $265,000
* This does not include $2,877,743 in City funding included in the FY 2022-23 Proposed Budget for a services agreement with SMTT that the City provides SMTT annually to continue SMTT’s tourism and marketing programs, operate Visitors Centers, produce collateral materials, create brand awareness, and promote Santa Monica through print and social media.
The SMTMD expenditures and services for FY 2022-23 are budgeted at $5,225,908 to focus on recovery and destination promotion to serve as a catalyst for economic recovery. The attached annual work plan reflects the initiatives and programs focused on five strategic areas:
1. Drive Balanced Demand for the Destination
2. Enhance the Brand and Steward the Destination Experience
3. Champion the Value of Tourism
4. Strengthen Strategic Partnerships and Relationships
5. Ensure Operational Excellence
The FY22/23 workplan continues to leverage Visit California and Los Angeles Tourism’s efforts. SMTT will continue to reach and extend its presence into key domestic California, border states, New York, Chicago, and Arizona and international markets – the United Kingdom, Canada, Mexico, and the European Union – to ensure Santa Monica is well positioned to attract a balanced and wide range of visitors. Additionally, SMTT will explore re-engaging with the Australian and New Zealand markets as airlift increases.
With that lens, strengthening and enhancing Santa Monica as a brand, marketing and promoting Santa Monica as a tourism destination, increasing occupancy, establishing partnerships within the tourism community, private sector and 4 of 5
government entities to position Santa Monica as a filming destination, and expanding a presence in emerging markets would continue to be core goals of the SMTMD.
The proposed FY 2022-23 budget was approved by the Tourism Marketing District Committee and the Santa Monica Travel and Tourism (SMTT) Board of Directors at a joint meeting on May 11, 2022. Council may approve the annual report or may modify any section contained in the annual report and approve it as modified. As the assessment formulas in the SMTMD remain as approved in 2017, staff recommends Council approve the attached Annual Report.
Past Council Actions
Meeting Date Description
12/11/2012 Council adopted Resolution No. 10722 (CCS) establishing the Santa Monica Tourism Marketing District (SMTMD).
Attachment B
11/1/2016 Council adopted Resolution 11005 (CCS) extending the SMTMD by nine and one-half years beginning on January 1, 2018 through June 30, 2027.
Attachment C
6/22/2021 Council approved the Annual Report for FY 2021-22 (Calendar Year 2022) representing the fifth report for the SMTMD renewal term.
Attachment D
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the recommended action.
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Prepared By: Nia Tang, Senior Development Analyst
Approved Forwarded to Council
Attachments:
A. 2022-2023 SMTMD Annual Report
B. 12/11/2012 Staff Report (Web Link)
C. 11/01/2016 Staff Report (Web Link)
D. 06/22/2021 Staff Report (Web Link)