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

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2 Why Extend to 10 Years? 1. More Time to Execute Long-Term Plans The 1994 Law only allows for TMDs initially to be formed for a maximum of five years, and upon renewal they can have up to a ten-year term. A 10-year term gives Travel Santa Ana the runway to plan and execute marketing campaigns and improvements that require time to produce measurable results. 2. Confidence from a Solid Track Record With five successful years under its belt, Travel Santa Ana has earned the trust of its hotel partners and is ready for the next phase of growth. 3. Less Time Spent on Renewals Going to Council or gathering petitions every few years takes time and resources. A 10- year term keeps things efficient and focused on results. The TMD hoteliers are in support of a 10-year term which would allow Travel Santa Ana to focus on sales and marketing efforts and revenue to be directed towards those efforts. 4. We’re in Good Company About 90% of all TMD renewals in California opt for a 10-year term. In Southern California alone, 21 cities—including Los Angeles, Torrance, Ontario, Pasadena, Huntington Beach, Lancaster, Murrieta, Burbank, and Santa Barbara—have a 10-year term. Assessment Rate and Oversight • Current rate: 2% • Every 2 years, the TSA Board may increase the rate by 0.5% up to a maximum of 4%. • If increased, the rate may later be decreased, but not below 2%. • The maximum increase or decrease allowed in any 2-year period is 0.5%. A proposed increase would be used to address a specific issue, such as recovering from a downturn in tourism, or expanding marketing efforts into new or underserved markets and adapting strategies to enhance destination competitiveness. The ability to potentially increase the assessment would allow the Santa Ana hoteliers flexibility with the funding source to further boost tourism and the local economy.