SRTBIA 1
SRTBIA
SANTA ROSA TOURISM
BUSINESS IMPROVEMENT AREA
2023 Annual Report
2024 Work Plan
SRTBIA 2
Table of Contents
Contents
SRTBIA: Santa Rosa Tourism Business Improvement Area
• Overview
• Boundaries
• Financial Summary
• Advisory Board
Revenue and Financial Summaries
• SRTBIA Assessments and Transient Occupancy Tax
• FY 2022-2023 / CY 2022 Budget Summaries
• Financial Summary
Tourism Industry Indicators
Accomplishments
• City of Santa Rosa
• Visit Santa Rosa
• Shared Programs
Looking Ahead
• City of Santa Rosa FY 2024 Work Plan
• Visit Santa Rosa CY 2024 Work Plan
Contacts & Sources
2 5
8 13
18 21
SRTBIA 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.
SRTBIA 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
SRTBIA 5
Revenue Summaries: Assessment + TOT
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%
SRTBIA 6
FY 2023 / CY 2022 Budgets vs. Actual
2022 SRTBIA REVENUE ALLOCATIONS
CY 2022 TBIA Revenue $2,143,099
City Administrative Fee* 2% $42,862
City of Santa Rosa 30% $630,071
Visit Santa Rosa 70% $1,470,166
*In compliance with State Code and per Santa Rosa Ordinance No. 3946, the Tax Collector (City) may charge an amount equal to its actual costs of collection and administration, not to exceed 2% of the assessments collected to defray incurred administrative costs.
The 2% administrative fee is deducted from the total funds remitted and the remaining 98% of the funds are disbursed as indicated above.
CITY BUDGET – FY 22-23
REVENUE BUDGETED ACTUAL
Administration
40% of 4 FTEs
$290,000 $237,294
Professional Services
Contracts related to Out There SR, cultural
arts and events, and other related
program needs
$150,000 $148,720
Marketing & Promotions $30,000 $12,178*
Event Support & Attraction $30,000 $22,956
Council Approved Budget $500,000
FY 21-22 Carry Forward
(budget contingency) $233,985 $233,985
Available Reserves $221,347
Total $955,332 $733,985 $421,148
* Marketing/promo costs were integrated into professional services related to the Out There SR program.
SRTBIA 7
FY 2023 / CY 2022 Budgets vs. Actual
VSR BUDGET – CY 2022
REVENUE 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
Assessment Revenue $1,470,166
County Welcome Center Funding $ 25,000
Other Revenue $13,250
Total $1,508,416 $1,385,250 $979,400
Note: The Santa Rosa Metro Chamber maintains a reserve balance of $500,000 in the VSR Budget, which is not used for annual expenses.
Significant differences between CY 2022 Budget and Actual figures are due to a shift in all personnel costs to Administration/Operations, and the opening of the Welcome Center later in the year than anticipated due to COVID-19 restrictions.
SRTBIA 8
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%.
SRTBIA 9
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.
SRTBIA 10
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.
SRTBIA 11
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
SRTBIA 12
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:
L i s t o f E v e n t s A w a r d e d
B e e r C i t y F e s t i v a l $ 7 , 2 5 0
P i n o t o n t h e R i v e r $ 5 , 0 0 0
S a n t a R o s a T u r k e y T r o t $ 5 , 0 0 0
S O F A W i n t e r b l a s t $ 5 , 0 0 0
A r t i s a n C h e e s e F e s t i v a l $ 5 , 0 0 0 U n i t e d F l y e r s o f S o n o m a
D i s c G o l f 2 7 th A n n u a l
P r o / A M J a m
$ 3 , 0 0 0
D J F E T r i a t h l o n R a c e S e r i e s $ 1 , 0 0 0 M o n s t e r T r u c k S p r i n g
N a t i o n a l $ 2 , 0 0 0
A m e r i c a n J u n i o r G o l f
A s s o c i a t i o n W y n d h a m C u p-
J u n i o r G o l f E v e n t
$ 5 , 0 0 0
B e e r f e s t- T h e G o o d O n e $ 2 , 0 0 0
C o u n t y S u m m e r M u s i c
F e s t i v a l $ 2 0 , 0 0 0
S a n t a R o s a M a r a t h o n $ 7 , 5 0 0
S n o o p y ’ s S e n i o r W o r l d
H o c k e y T o u r n a m e n t $ 1 5 , 0 0 0
T o t a l A m o u n t A w a r d e d $ 8 2 , 7 5 0
SRTBIA 13
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
SRTBIA 14
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
SRTBIA 15
Accomplishment s
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
SRTBIA 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
SRTBIA 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:
SRTBIA 18
20 24 Looking Ahead /Work Plan
City of Santa Rosa
• Strategic Plan Development &
Implementation
o Business retention, expansion,
and attraction activities
o Website improvements
o 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
o Evaluation of Sonoma County
Tourism Business Improvement
District participation and
opportunities.
o Evaluation and potential TBIA
funding of special capital or
operational projects that would
positively affect hospitality
demand.
• Marketing:
o Continue to advance Out There
SR website and social media
o Other marketing and
advertising opportunities and
partnerships.
• Local Engagement:
o Merchandise
o Placemaking & Public Art
Collaborations/Strat Plan
implementation
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 the California
Travel Association, Destination
Marketing Association of the West, and
many others.
SRTBIA 20
2024 WORK PLAN BUDGETS
CITY OF SANTA ROSA WORK PLAN – 2024
EXPENSE
Administration + Operations
Staff – 40% of 4 City FTE
(Includes salaries & benefits)
$304,702
Professional Services
(Studio B & others) $150,000
Event Support & Attraction $150,000
Business/Workforce, OTSR, Placemaking Programs $208,135 Total $ 812,837
REVENUE
Council Approved Budget $500,000
Carry Forward $312,837
Unappropriated Reserve Funds $0
Total $812,837
VISIT SANTA ROSA WORK PLAN – CY 2024
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
Note: The Santa Rosa Metro Chamber adopts its annual budget in January of each calendar year.
The VSR Budget presented in this table is approximate, subject to change pending the Chamber’s normal budgeting process. No use of reserves or carry forward balance is anticipated.
SRTBIA 21
C o n t a c t s
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 Economic Development Board 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
• Moody’s Analytics