Item 07 - Public Meeting Regarding Renewing the Santa Ana Tourism Marketing District

Home Browse Search

Public Meeting to Renew the Santa Ana Tourism Marketing District (SATMD) June 3, 2025 Page 3 5 0 7 5 OC Restaurant Week and the "Proud Santanero" campaign series, have spotlighted local businesses and cultural assets. Recognizing the importance of data in decision-making, TSA commissioned the city's first tourism economic impact study, providing critical insights into visitor trends and spending patterns. International outreach has been a key priority, with initiatives such as a culinary passport program showcasing Santa Ana’s diverse dining scene and a pioneering cannabis tourism program designed to attract niche travel markets. These efforts have positioned Santa Ana as a compelling destination for both domestic and international visitors, particularly from Mexico and Canada. Further expanding its global reach, TSA has developed an international marketing plan and secured a partnership with acclaimed travel journalist Peter Greenberg for a segment on Santa Ana’s “Hidden Gems”, set to air on PBS and Apple TV. These initiatives collectively contribute to Santa Ana’s long-term tourism growth, reinforcing the city's status as a premier destination within the region. It was reported that in January 2025, the hotel occupancy for the SATMD was up 11.9% from January 2024. In addition, the Average Daily Rate for hotels were up 1.6% which resulted in a 13.7% increase in hotel revenue. TOURISM MARKETING DISTRICT BACKGROUND Tourism Marketing Districts (TMDs) utilize the efficiencies of private sector operation in the market-based promotion of tourism. These special assessment districts allow lodging business owners to organize their efforts to increase tourism. Lodging business owners within the TMD fund the TMD, and those funds are used to provide services that are desired by and benefit the lodging businesses within the TMD. TMD benefits: •Funds cannot be diverted for other City government programs •They are customized to fit the needs of each destination •They allow for a wide range of services, including: destination marketing, tourism promotion, and sales lead generation •They are designed, created, and governed by those who will pay the assessment •They provide a stable funding source for tourism promotion In California, TMDs are primarily formed pursuant to the Property and Business Improvement District Law of 1994 (94 Law). This law allows for the creation of a special benefit assessment districts to raise funds within a specific geographic area. The key difference between TMDs and other special benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the TMD.