1 SRTBIA
SANTA ROSA TOURISM
BUSINESS IMPROVEMENT AREA
Annual Report
2022-2023
Wo
rk Plan
2023-2024
EXHIBIT A
2 Table of Contents
Contents
SRTBIA: Santa Rosa Tourism Business Improvement Area
• Overview
• Boundaries
• Financial Summary
• Advisory Board
Financial Summaries
• SRTBIA Assessments and Transient Occupancy Tax
• FY 2022-2023 / CY 2022 Budget Summaries
• Financial Summary
Tourism Industry Indicators
2022-2023 Accomplishments
• City of Santa Rosa
• Visit Santa Rosa
• Shared Programs
Looking Ahead
• City of Santa Rosa FY 2023-2024 Work Plan
• Visit Santa Rosa CY 2023 Work Plan
Contacts & Sources
2 5
7 12
18 19
3 Overview
SANTA ROSA TOURISM
BUSINESS IMPROVEMENT AREA
The SRTBIA was established by
Ordinance 3946 on August 3, 2010,
creating a public-private partnership
between the City of Santa Rosa, the
Santa Rosa Metro Chamber, and Santa
Rosa lodging establishments.
The SRTBIA is a 3% assessment
collected by the City of Santa Rosa on
lodging operators within Santa Rosa city
limits. On a quarterly basis, the lodging
establishments remit these funds to the
City. After a 2% City administrative fee
is deducted from the total funds
remitted, the remaining 98% of the
funds are disbursed as follows:
• 30% of the funds collected are
allocated to and managed by the
City’s Economic Development
Division to support destination
brand and tourism infrastructure
programs.
• 70% goes to the Santa Rosa Metro
Chamber for their Convention &
Visitors Bureau and Welcome
Center operations & services (aka
Visit Santa Rosa)
The Assessment provides for efficient
and complementary tourism
infrastructure support, destination
marketing, tourism, and group sales
programs that encourage and support
overnight stays.
ASSESSMENT BOUNDARIES
(participating businesses)
Lodging businesses are those operating
within the Santa Rosa city limits and
include hotels, motels, bed, and
breakfast inns, short-term occupancies,
and all similar lodging businesses.
AUTHORIZED USES
(Ordinance 3946, Section 6-56.290)
The purpose of forming the SRTBIA as
an assessment area under State law
was to provide revenue to defray the
costs of services, activities, and
programs that promote and encourage
tourism within Santa Rosa to the
benefit of the assessed lodging
establishments.
Revenues from assessments may be
used for programs, services, and
activities inside or outside Santa Rosa if
such programs, services, and activities
promote and encourage overnight visits
to the city. Revenues may also be used
to pay or reimburse administrative
costs incurred by the Chamber or the
City in connection with the creation of
the SRTBIA and the ongoing
administrative costs associated with
marketing and event activities.
4 Advisory Board
The SRTBIA Advisory Board is comprised of five members appointed by City Council as follows:
• One Santa Rosa Metro Chamber employee
• One City of Santa Rosa employee
• Three hotel operators, at least one of whom is employed by a full-service hotel, and one of whom is employed by a select-service hotel
The role of the Advisory Board is to advise the City Council on the amount of the Area’s assessments and on the services, programs, and activities to be funded by the assessments. The Advisory Board is required to meet at least quarterly; the meetings are open to the public and are held through Zoom until further notice. The Advisory Board met a total of 6 times in 2021 (bi- monthly).
ROSTER Affiliation/Position Representing
• Peter Rumble President and CEO SR Metro Chamber
• Rafael Rivero Economic Dev Specialist City of Santa Rosa • Donna Renteria Best Western Garden Inn Hotel - Select Service • Todd Anderson Best Western Plus Wine
Country Inn & Suites
Hotel – At Large
• Hugh Futrell Hotel E Hotel – Full Service
ADDITIONAL REQUIRED COMPONENTS
In accordance with the Parking and Business Improvement Area Law of 1989, Section 36500 et seq. of the California Streets and Highways Code, the following information must be included in the Annual Report and Work Plan:
• Changes to boundaries:
No changes recommended
• Improvements and activities to be
provided for the upcoming fiscal
year:
Outlined herein
• Estimated cost of providing the
improvements and the activities for
the upcoming fiscal year:
Outlined herein
• Changes to the method and basis of
levying the assessment:
No changes recommended
• The amount of any surplus or deficit
revenues to be carried forward
from a previous fiscal year:
Outlined herein
• The amount of any contributions to
be made from sources other than
assessments levied pursuant to this
part:
Outlined herein
5 Assessment
SRTBIA Assessment Actuals by Quarter
Q1 Q2 Q3 Q4 Total
2022 $368,024 $653,050 $649,161 $472,864 $2,143,099 +20% 2021 $228,268 $444,961 $660,977 $464,080 $1,800,304 + 66% 2020 $313,586 $156,254 $334,471 $278,534 $1,084,865 - 45% 2019 $ 351,256 $ 541,518 $ 601,181 $ 475,984 $ 1,969,939 + 4% 2018 $ 393,065 $ 512,191 $ 552,694 $ 437,034 $ 1,894,984 - 7% 2017 $ 366,148 $ 534,354 $ 652,108 $ 466,841 $ 2,019,451 - .5% 2016 $ 359,117 $ 532,130 $ 659,689 $ 476,713 $ 2,027,649 + 10% 2015 $ 319,047 $ 471,471 $ 600,755 $ 432,620 $ 1,823,893 + 11% 2014 $ 278,597 $ 414,046 $ 538,212 $ 400,503 $ 1,631,358 + 11% 2013 $ 243,392 $ 388,906 $ 486,382 $ 333,570 $ 1,452,250 + 11% 2012 $ 213,069 $ 324,949 $ 442,635 $ 305,237 $ 1,285,890 + 11% 2011 $ 192,463 $ 285,884 $ 405,871 $ 258,274 $ 1,142,492
TRANSIENT OCCUPANCY TAX
100% of Santa Rosa’s TOT is General Fund revenue with no special earmarks.
Santa Rosa Transient Occupancy Tax by Quarter
Q1 Q2 Q3 Q4 Total
2022 1,104,071 1,959,153 1,947,483 1,418,591 6,429,298 +20% 2021 $684,829 $1,334,889 $1,982,155 $1,383,935 $5,385,808 + 66% 2020 $940,781 $468,785 $1,003,241 $835,645 $3,248,452 - 45% 2019 $1,053,999 $ 1,624,527 $ 1,803,583 $ 1,427,865 $ 5,909,974 + 4% 2018 $ 1,179,143 $ 1,536,583 $ 1,658,045 $ 1,311,085 $ 5,684,856 -7% 2017 $ 1,098,497 $ 1,603,056 $ 1,956,283 $ 1,400,538 $ 6,058,374 - .5% 2016 $ 1,077,265 $ 1,595,850 $ 1,979,736 $ 1,430,498 $ 6,083,349 + 10% 2015 $ 957,684 $ 1,414,356 $ 1,802,200 $ 1,296,492 $ 5,470,732 + 11% 2014 $ 836,436 $ 1,241,672 $ 1,614794 $ 1,202,053 $ 4,894,955 + 11% 2013 $ 730,203 $ 1,166,691 $ 1,459,427 $ 1,004,402 $ 4,360,723 + 11% 6 Financial Budgets
CITY PROGRAM EXPENSES: Budget vs. Actual
CITY BUDGET – FY 22-23
BUDGETED ACTUAL
Administration + Operations
Staff, overhead and maintenance costs $288,161 $237,294 Professional Services $150,000 $148,720
Marketing, Promotions, Recovery Programs $30,000 $12,178* Event Support & Attraction $30,000 $22,956
Available Reserves $221,347
Total $719,508 $421,148
Funding Breakdown – City of Santa Rosa
Council Approved Budget $50 0,000
FY 21-22 Carry Forward $ 233,985
Reserves* $221,347 *funds held in reserve that were received beyond Council approved budget
VISIT SANTA ROSA BUDGET: Budget vs. Actual
VSR BUDGET – CY 2022 BUDGETED ACTUAL
Administration / Operations $386,550 $594,000
California Welcome Center Operations $296,100 $108,000
Group Sales, Marketing, Promotions, PR $654,600 $194,000 Event Support & Attraction $48,000 $83,400
Total $1,385,250 $979,400
CY 2022 Contributions and Other Funding Sources – Visit Santa Rosa $ 25,000 County of Sonoma Welcome Center Funding
$743,551
* Marketing/promo costs were integrated into professional services related to the Out There SR program. 7 Tourism Indicators
Reporting Trends through May 2023
Sources: Sonoma County Tourism / Dean Runyan Associates / Moody’s Analytics
Occupancy Rate
The occupancy rate for Sonoma County is
determined by dividing the total room
nights sold by the total room nights
available for purchase. The average
annual occupancy in 2022 was 64%. This
matched the occupancy level relative to
2021. Although 2022 represented a
banner year for area lodging
performance, there still remains a gap in
occupancy recovery when looking at the
post-pandemic three-year trend between
2021 to 2023. For reference, the
occupancy rate in Santa Rosa in 2022 was
65%.
8 Tourism Indicators
Reporting Trends through May 2023 for Annual Average Daily Rate (ADR)
ANNUAL AVERAGE DAILY RATE
(ADR)
The average daily rate (ADR) represents the
average amount spent on hotel
accommodations by a visitor per room night
in Sonoma County. 2020 was the first year
that this number has decreased since 2010.
It fell from $181 to $140 from 2019 to 2020.
However, the average ADR for 2022
exceeded pre-pandemic levels, at $221. At
the County level, the ADR increased 43%
from 2020 to 2021 and these levels have
continued a trend topping $256 in June
2022. For reference, the ADR in Santa Rosa
in 2022 was $159.
9 Tourism Indicators
Charles M. Schulz-Sonoma County Airport Trends
AIRPORT TRAVEL TRENDS
Passenger traffic at the Charles M. Schulz-
Sonoma County Airport increased each year
from 2013 through 2019. Due to the
pandemic, there was a dramatic downturn in
passenger travel in 2020. During this slower
period, Charles M. Schulz-Sonoma County
Airport initiated the construction of its
Terminal Improvement and Modernization
Project. Passenger travel increased
significantly from 2020 to 2021 after COVID-
19 restrictions were lifted and by the end of
2022, the airport saw a 41% increase in
passenger volume over 2021 levels.
10 Travel Impact s 2022
Visitor Statistics
Source: Dean Runyan Associates and Longwoods International
• 9.9 million visitors came to Sonoma County in 2021 (+18% over 2020 levels and -3.5% of the 2019 visitor volume)
• Of these, 54% (5.3 million) are day visitors and 46% (4.6 million) are overnight visitors • In 2022, Sonoma County experienced a marked recovery in visitor spending. Visitors spent $2.299 billion in Sonoma County in 2022 (of which $419.7m is credited to Santa Rosa), an increase of 18.7% over 2021 county-wide, which also outpaced the 2019 pre-pandemic spending total by 2.7%
• Tourism and hospitality have always been important industries for Sonoma County’s workforce. 2022 saw a gain of 20.1% in travel sector jobs. Hospitality industry employment in 2022 was 21,150 (10% of the overall workforce) and recovered to 94% of 2019 employment levels.
Travel Impacts by city
Tax Receipts* ($ Million)
Spending
($ Million)
Earnings
($ Million)
Employment
(Jobs) Local State Total
Cloverdale 14.2 5.7 131 0.8 0.5 1.3
Healdsburg 239.5 97.0 2,203 13.5 9.6 23.1
Petaluma 174.6 70.7 1,606 9.8 7.0 16.8
Rohnert Park 160.0 64.8 1,472 9.0 6.4 15.4
Santa Rosa 419.7 170.0 3,861 23.7 16.9 40.6
Sebastopol 27.2 11.0 251 1.5 1.1 2.6
Sonoma 219.4 88.9 42,019 12.4 8.8 21.2
Unincorporated/Other 961.6 389.6 8,846 54.4 38.8 93.2
Windsor 82.4 33.4 759 4.6 3.3 7.9
COUNTY TOTALS 2298.9 931.4 21,150 130.0 92.8 222.8
TRANSPORTATION UPDATES
• Charles M. Schulz-Sonoma County Airport welcomed Enhanced Sonoma County Airport Express Service
• Charles M. Schulz-Sonoma County Airport unveiled a new modernized air terminal during their Grand Opening Celebration
• Avelo Airlines continues Sonoma County Expansion with a new exclusive nonstop service to Central Oregon and Palm Springs
• SMART launches on-demand micro-transit shuttle connecting the train to the Sonoma County Airport (STS)
• SMART secures $34M toward the construction of the system’s northern extensions 11 Event Suppo rt
Staff members from both entities met over the course of the Fiscal Year and determined a new streamlined online process that allows efficiency in the application process and offers effective data collection.
The renewed goal of the City of Santa Rosa & Visit Santa Rosa Event Support Program is to provide a streamlined application, a consistent review and award process for event support, and to encourage community events in Santa Rosa that develop community culture, provide community service, attract visitors, and contribute to destination vitality and placemaking.
The SRTBIA Board met throughout the FY 2022-2023 and approved funding for the following destination events through the Event Support Program:
List of Events Awarded
Beer City Festival $7,250
Pinot on the River $5,000
Santa Rosa Turkey Trot $5,000
SOFA Winterblast $5,000
Artisan Cheese Festival $5,000
United Flyers of Sonoma
Disc Golf 27 th Annual
Pro/AM Jam
$3,000
DJFE Triathlon Race Series $1,000
Monster Truck Spring
National $2,000
American Junior Golf
Association Wyndham Cup -
Junior Golf Event
$5,000
Beerfest - The Good One $2,000
County Summer Music
Festival $20,000
Santa Rosa Marathon $7,500
Snoopy’s Senior World
Hockey Tournament $15,000
T otal Amount Awarded $82,750
12 Accomplishments
OUT THERE SANTA ROSA CAMPAIGN
In 2021, the Economic Development Division, in partnership with the Public Art Program, hired Santa Rosa-based design firm Studio B to rebrand and refresh Out There Santa Rosa, to serve as a visitor destination and local pride campaign designed to highlight the city as the urban center of Sonoma County. Focusing on attracting a younger more alternative demographic who is looking for unique experiences, local pride is being achieved by building relationships within the community and highlighting diversity and uniqueness.
In the first year since the launch of www.OutThereSR.org in April 2022, which features over 100 local
options for unique experiences and continues to be updated every month:
• 7,109 total users
o 65% or 4,668 from US, outside of Santa Rosa
o 26% or 1,827 from Santa Rosa
o 9% or 614 from outside US
• Approx. 592 users per month
• 85% new users
• Ave. time spent on site 1 min 27 sec
• Top 3 most visited categories: Music, Wild Card and Art
13 Accomplishments
A priority has been building our audience and deepening the user experience through video shorts on social media. This drives social interaction and continues to increase engagement on both the website and social platforms. In contrast to who is using the website, about 78% of our social media users are from the Santa Rosa area. In the first year since the launch of the new website:
• Facebook – OutThereSR – 13,518 followers
o Reach increased by 270%
o Page visits increased by 322%
o Post engagement increased by 175%
o New followers increased by 115%
o New page likes increased by 75%
o Unfollowers decreased by 47%
• Instagram – @outtheresr – 1,701 followers
o Reach increased by 2k%
o Profile visits increased by 456%
o 1,573 new followers
14 Accomplishments
STRATEGIC PLANNING
The Economic Development Division is leading a strategic plan update process originally initiated during the height of the pandemic. Driven by community inequities highlighted and intensified by the longevity of the pandemic, initial public input and engagement honed in on a long-term vision for a healthy and thriving Santa Rosa community centering on equity and targeted universalism. As the tourism industry is a critical sector in the local and regional economy, it is being considered throughout the updated plan development.
Additionally, SRTBIA programs are also in alignment with and/or leveraged by the Public Art Program Strategic Plan 2021-2024, available online here: https://srcity.org/arts .
15 Accomplishments
VISIT SANTA ROSA ORGANIZATIONAL PIVOTS
• Hired new VP, Marketing &
Communications to oversee all Visit
Santa Rosa (VSR) operations, including
the California Welcome Center
• Hired new Content & Social Media
Coordinator and Events & Community
Engagement Manager
• Re-opened and fully staffed the
California Welcome Center. New hires
for the center included an internal
promotion for the Welcome Center
Manager and two new concierges
• Implemented a VSR Marketing Plan in
coordination with Advisory Committee
members
• Contracted with marketing agency
Miles Partnership to continuously run
both meetings and leisure digital
campaign campaigns, which include
Facebook, Instagram, LinkedIn, and paid
search ads
• Began developing several short videos
to highlight restaurants, hotels, and
attractions in Santa Rosa for use
through various marketing platforms
• Implemented a new monthly
newsletter to all hoteliers/hospitality
partners with updates from the VSR
team, providing multiple ways for
stakeholders to provide input and
feedback about future initiatives
• Developed and shared content to
support local businesses including
Downtown Winter Lights, Summer on
the Square, and various cultural events
and markets facilitated and or hosted by
the Santa Rosa Metro Chamber
VISIT SANTA ROSA SALES
• Hired a new Director of Business
Development in November 2022
• Worked with the SRTBIA board to
implement the new event support
program
• Worked with partner organizations and
local/external event hosts to bring back
larger repeat/annual Santa Rosa events
and new events
• Through the group sales effort sent
leads and referrals to lodging and non-
lodging partners as well as continued to
provide servicing to programs with
visitor information and group event
planning
• Renewed existing and established new
relationships with hospitality industry
partners
• Participated in trade shows and
conferences for the
meetings/destination sales industry:
o CalSAE
o Visit California Roadshow –
Seattle
o Visit California Outlook Forum
16 Ac complishments
MARKETING + PUBLIC RELATIONS
• Through the use of various social media platforms,
stimulated engagement and sharing of the
destination
• Added a VSR TikTok account and increased following
of all social media accounts
• Signed contract Miles Partnership and began
working on a website redesign and rebuild
• Social media stats for the 22-23 fiscal year:
o Facebook Reach: up 244% compared to the
21-22 fiscal year
o Instagram Reach: up 169% compared to the
21-22 fiscal year
• Emphasize public relations and earned media that
created favorable convergence for destination by
participating in Visit California media missions and
relationship-based outreach to influencers. 127%
increase in media mentions compared to 21/22
• Year 7 of the Santa Rosa Beer Passport program
resulted in the most successful and well-attended
FeBREWary campaign to date. Highlights included:
o A new digital passport made through a partnership between Visit Santa Rosa and Bandwango
o 12 local breweries participating in the new digital passport concept o 2,370 downloads of the digital passport
o Partners experienced 10,543 check-ins and the
o Passport can now be used year-round.
• Conferences/trade shows attended:
o Great American Beer Festival
o DMA West Education and Leadership Summits
o TravMedia IMM North America
o SF Travel Marketing Conference
17 Accomplishments
CALIFORNIA WELCOME CENTER
• After being closed since March 2020 due
to the COVID-19 pandemic, the California
Welcome Center (CWC), located in Historic
Railroad Square reopened its doors in June
2022
• Since the re-opening, CWC staff has been
hard at work giving the space a fresh new
look with updated furniture, art, and paint.
• The City of Santa Rosa remodeled the
bathrooms to make them accessible to all
patrons
• CWC staff co-hosted an industry open house
with Visit California in June 2022 to showcase our partnership and emphasize how we all work together to support our partners
Facebook and Instagram data chart:
• Regularly updated content and provided a dynamic website experience. Website users up 15% from 2021-22:
18 2023 -24 Looking Ahead/Work Plan
City of Santa Rosa
• Strategic Plan Implementation
o Business retention, expansion,
and attraction activities
o Website improvements at
srcity.org
o Development of business data
and tracking tools
o Pursuit of an enhanced
infrastructure financing district
and other community-initiated
districts
o Leveraging other programs and
funding sources to bolster
tourism-related economic
impacts and opportunities
• Marketing:
o Out There SR website and social
media
o Other marketing and
advertising opportunities and
partnerships
• Local Engagement:
o Merchandise
o Placemaking & Public Art
Collaborations
o Event support and promotion
Visit Santa Rosa
• Finalize new website rebuild and
redesign
• Update branding guidelines and roll out
new meeting & leisure campaigns
• Update visitor guide
• Work with the SRTBIA board to initiate
a strategic plan
• Continue to market Santa Rosa as a
premier destination through effective
public relations, media campaigns,
product offerings, digital assets, social
media platforms, events, and direct
sales
• Increase leads sent to hospitality
members, primarily in off-season
months and mid-week
• Work with our industry partners Visit
California, Sonoma County Tourism,
Santa Rosa Metro Chamber, the
Downtown Action Organization, and the
City of Santa Rosa Economic
Development Division to increase and
ensure coverage of all our destination
offerings
• Continue to analyze visitor and market
insights and analytics to determine the
best timing and updates for our
marketing and sales strategies.
• Enhance the SRTBIA Event Support
Program to attract, retain, and grow
events that create economic impact and
promote the overall destination
• Continue to create economic
development and impact through
media mentions, education, and the
sourcing and servicing of revenue-
producing opportunities for our
business community
• Continue participation in professional
associations, such as California Travel
Association, Destination Marketing
Association of the West, Destinations
International, West Coast Destination
Marketing Organization Alliance,
Meeting Planners International, and
Silicon Valley Business Travel to name a
few
19 Proposed Budgets
CITY OF SANTA ROSA WORK PLAN – FY 2023-24
EXPENSE
Administration + Operations
Staff, overhead, maintenance costs $304,702
Professional Services $150,000
Event Support & Attraction $ 150,000
Business/Workforce, OTSR, Placemaking Programs $ 225,591 Total $ 830,293
REVENUE
Council Approved Budget $500,000
Carry Forward $330,293
Reserves Use $0
Other Funding Sources – City of Santa Rosa
Estimated funds held in the account that were received beyond what was approved during the City budget process
Carry Forward -$330,293
Reserves - $221,347
VISIT SANTA ROSA WORK PLAN – CY 2023
BUDGET
Administration / Operations $ 664,700
California Welcome Center Ops $ 290,000
Sales, Marketing, Promotions, PR $ 385,000
Event Support & Attraction $130,000
Total $ 1,469,700
20 Contacts
CITY OF SANTA ROSA
SANTA ROSA METRO CHAMBER & VISIT SANTA
ROSA
Raissa de la Rosa
Economic Development Division Director
Tel. (707) 543-3059
[email protected]
Peter Rumble
President & CEO, Santa Rosa Metro Chamber
Tel. (707) 545-1477
[email protected]
Rafael Rivero
Economic Development Specialist
Tel. (707) 543-3460
[email protected]
Janelle Meyers
Vice President, Marketing & Communications
Santa Rosa Metro Chamber/Visit Santa Rosa
Tel. (707) 545-2114
[email protected]
Tara Thompson
Arts & Culture Manager
Tel. (707) 543-4512
[email protected]
DATA SOURCES
• The EDB Sonoma County Annual Hospitality Report 2022
• City of Santa Rosa TOT Annual and Quarterly Reports 2022 • California Travel Impacts 2021 & 2022
• Press Democrat Articles, 2022 - 2023
• Sonoma County Tourism 2022 – 2023 Stats