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HomeMy WebLinkAboutItem 11 - 2023 Travel Santa Ana Annual Report11. 2023 Travel Santa Ana Annual Report Department(s): Recommended Action: Receive and file. Community Development Agency www.santa-ana.org/community-development Item # 11 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report August 6, 2024 TOPIC: 2023 Travel Santa Ana Annual Report AGENDA TITLE 2023 Travel Santa Ana Annual Report RECOMMENDED ACTION Receive and file. GOVERNMENT CODE §84308 APPLIES: No DISCUSSION On November 17, 2020, the City Council approved the formation of the Santa Ana Tourism Marketing District (SATMD), which is a benefit assessment district created to help fund marketing and sales promotion efforts for Santa Ana lodging businesses. The established SATMD includes all lodging businesses with 70 rooms or more located within the boundaries of the City of Santa Ana (City). The annual assessment rate is 2% of gross short-term room rental revenue and the SATMD has a five-year term, which began January 1, 2021 and will end on December 31, 2025. Travel Santa Ana, the nonprofit tourism marketing association, was formed to manage the SATMD assessment funds and implement marketing programs aimed at increasing tourism in the City. Through innovative strategies and a deep understanding of the City's unique appeal, Travel Santa Ana has elevated the City's profile, drawing visitors from far and wide. Through a multifaceted approach, combining digital marketing campaigns, community engagement, and strategic partnerships, Travel Santa Ana has fostered a vibrant tourism ecosystem, boosting local businesses and showcasing the City's rich cultural heritage. By highlighting the diverse tapestry of experiences the City has to offer, from its bustling arts scene to its culinary delights and historical landmarks, a narrative has been crafted that resonates with travelers of all backgrounds. Each year, Travel Santa Ana is required to submit an annual report to the City Council reporting on the activities of the previous year. The attached Annual Report highlights the successful marketing and promotional activities accomplished in 2023. 2023 Travel Santa Ana Annual Report August 6, 2024 Page 2 FISCAL IMPACT There is no fiscal impact associated with this action. EXHIBIT(S) 1. 2023 Travel Santa Ana Annual Report Submitted By: Michael L. Garcia, Executive Director of Community Development Approved By: Alvaro Nunez, Acting City Manager Treavet (ganto ;4"o 202 t.rr .r5� 4 � — � ,•,S." %) �t 30 e IMF :kF iIiIIII1�C1i1117l�Yihllilillli As a non-profit, Travel Santa Ana is the official Destination Marketing Organization (DMO) for Santa Ana. Travel Santa Ana is dedicated to promoting the city as a desirable Orange County destination for business, leisure, meetings, sports, and group travel. As a non -for -profit, 501 C (6), Travel Santa Ana is funded by a 2%assessment implemented by the Santa Ana Tourism Marketing District (SATMD). The SATMD is comprised of 17 hotels and motels with (70) rooms or more within the boundaries of the City of Santa Ana. The assessment is paid for by visitors who stay at those hotels and motels. 2021-2023 TRAVEb SRNTA ANR BOARD OF DIRECTORS: Chair: Julie Buettner, General Manager, Courtyard Costa Mesa South Coast Metro Vice -Chair: Robert Kravitz, General Manager, Courtyard Santa Ana/Orange County Treasurer: Ryan Chase, Owner, 4th Street Market Secretary: Erin Warady, Senior Vice President Marketing, Discovery Cube Frank Atayde, General Manager, Holiday Inn Orange County Airport Valerie Cooper, General Manager, Embassy Suites by Hilton Santa Ana Orange County Airport Dave Elliott, President & CEO, Santa Ana Chamber of Commerce Ashley Kravitz, Senior Marketing Director, MainPlace Mall Marc Morley, Economic Development Manager, City of Santa Ana Aaron Saliba, General Manager, DoubleTree Hotel Santa Ana/Orange County Airport Quinn Su, General Manager, Doubletree by Hilton Orange County Airport WENDY HAASE-ROBERTS President £r CEO ANALAURA BECERRA Director of Sales EXHIBIT 1 THE WORK OF R DESTInflTION ORGHnIZRTIOn 11 _RTA_P1_ii i If you built a place where people want to visit, then you have built a place where people want to live. t-9-1011-441 And if you built a place where business and residents will invest, then you have built a place where people will want to visit. OKAND MANAGEMENT P4ACE STEWARDSHIP AND INVESTMENT PROMOTION AND SAI-ES 2. bIVE And if you built a place where people want to live, then you have built a place where people want to work. And if you built a place where people want to work, then you have built a place where business and residents will invest. EXHIBIT 1 The Santa Ana Tourism Marketing District (TIMID) will continue to include lodging businesses, existing and in the future, available for public occupancy within the boundaries of the City of Santa Ana. The boundary, as shown in the below, currently includes seventeen (17) lodging businesses with seventy (70) rooms or more. HOTEL OUERUIEW o= Santa Ana Hotel Inventory: 2,740 rooms at 17 Hotels Hotel Annual Revenue: Over $77 Million* Hotel visitor Tax: $20.6 Million Tourism Marketing District Collections: $2.8 Million Hotel Average Daily Rate: $228.82 Hotel Occupancy: 67% *Includes 15 of the 17 TMD hotels. Santa Ana CA Lodge and Red Roof Inn do not report to STR. � a 7` f P?j n F i 4 1 of •..�� � - 1 5 � EXHIBIT 1 Best Western Plus Orange County Airport North 2700 Hotel Terrace # Room] 148 RoomsLocation 1 Room, 800 sq. ft. California Lodge Suites 2909 S. Briston St. 181 Comfort Inn & Suites Orange County Iohn Wayne Airport 2620 Hotel Terrace 122 Courtyard Costa Mesa South Coast Metro 3002 S. Harbor Blvd. 145 3 Rooms, Largest 676 sq. ft.1,553 sq. ft. total Courtyard Marriott Santa Ana 8 MacArthur Place 155 4 Rooms, Largest 3,953 sq. ft., 5,059 sq. ft. total DoubleTree Club by Hilton Orange County Airport 7 Hutton Centre 167 5 Rooms, Largest 1,848 sq. ft., 3,976 sq.ft. total DoubleTree Santa Ana - Orange County Airport 201 E. MacArthur Blvd. 253 5 Rooms, Largest 7,308 sq. ft., 8,638 sq. ft. total Embassy Suites - Santa Ana Orange County Airport 1325 E. Dyer Road 301 9 Rooms, Largest 4,407 sq. ft., 7,629 sq. ft. total Hampton Inn & Suites Santa Ana Orange County Airport 2720 Hotel Terrace 121 1 Room, 400 sq. ft. Holiday Inn Express & Suites Santa Ana Orange County 1600 E. 1st St. 138 8 Rooms (1 per floor), Each 600 sq. ft. 5 Rooms, Largest 1,866 sq. ft., 5,000 sq. ft. total Holiday Inn Santa Ana Orange County Airport 2726 S. Grand Ave. 176 La Quinta by Wyndham Orange County Airport Mainstay Suites Orange County ]ohn Wayne Airport 2721 Hotel Terrace 180 2701 Hotel Terrace 176 Motel 6 Santa Ana/Irvine Orange County Airport 1717 E. Dyer Road 150 Motel Santa Ana 1623 E. 1st St. 80 Red Roof Inn Santa Ana 2600 N. Main St. 125 2600 Red Hill Ave. 122 1 Sonesta Simply Suites Orange County Airport 2022 DIRECT RRUEL IMPRCTS TO SHUR BBB $348.5 MILLE DIRECT TRAVEL SPENDING $24.9 MILL,' IN TAX BY DIRECT TRAVEL SPENDING 2,750 SANTA ANA LOBS ARE SUPPORTED BY VISITORS EQUALING $227 MILLION IN WAGES TO SANTA ANA'S ECONOMY. SANTA ANA'S MAIOR VISITOR SPENDING CATEGORIES: $90 million Dining $83 million Accommodations $68 million Arts, entertainment, & recreation $60 million Local transportation & gas $32 million Retail sales $1S million Food stores Without these travel -generated tax receipts, resident households in Santa Ana would pay $356 more a year in state and local taxes. TOURISM REUEHUE HELPS TO SUPPORT: PUBLIC SAFETY PUBLICINFRASTRUCTURE EXHIBIT 1 GORLS "a, STRRTEGIES - . Increase audience exposure to the brand across all touchpoints of the travel planning journey. • Cultivate third -party meeting planner relationships that amplify and magnify the city's sales impact in the marketplace, including attending sales missions and tradeshows. • Develop creative marketing campaigns that drive awareness and bookings. • Implement a strategic marketing mix that drives conversions from target demographics. • Test and track each marketing initiative to optimize performance. • Adjust campaigns on an ongoing basis to reach key performance metrics for the highest ROI. 19 TRUESHOWS LP 0 a LERB3 • CA DMO Alliance S O 8 fiPPOINTHENTS $4 MILLION III POTENTIRL HOTEL REUENUE ROAD L TRADE SHOWS • CaLSAE Elevate & Seasonal Spectacular • Connect Spring, West & Marketplace • HPN Global & Partner • IMEX America • Meetings Today Live • Northstar's Independent Planners, Destination West & Destination California • Small Market Meetings • Smart Meetings National • Southern California Chapter of MPI • Student Youth Travel Association • TEAMS -Visit California Meeting Planner Road Shows Seattle & Denver CLIENT EVENTS - Hosted client events in Dallas, Las Vegas, Miami, Sacramento, Scottsdale, Seattle, and Vancouver. I]* AVERAGE VISITOR SPEND $149 'VISITOR MARK LOS ANGELES, CA 13.7% 2.4% G. VISITOR SPEND $87 SAN DIEGO, CA 12.1% 2.2% $79 PHOENIX, AZ 9.4% 3.8% $95 SAN FRANCISCO - OAKLAND - SAN LOSE, CA 6.7% 6.4% $84 LAS VEGAS, NV 6.4% 1.8% $101 SACRAMENTO - STOCKTON - MODESTO, CA 4.3% 4.2% $100 FRESNO - VISALIA, CA 2.5% 1.5% $141 SALT LAKE CITY, UT 2.2% 1.6% $96 SEATTLE - TACOMA, WA 2.1% 3.2% $114 DALLAS - FT. WORTH, TX 2.0% 2.8% $186 VISITORS AGED 25 TO 54 57% nEMOGRAPHICS % OF VISITORS - $200K+ 56% % OF VISITORS WITH CHILDREN IN HOUSEHOLD I PAID MEDIA Social Media Pay -Per -Click Retargeting Display Ads 1=11. I EARNED MEDIA Blogger/Influencer Content Search Engine Optimization Social Media Content Media FAMS News Mentions OWNED MEDIA Website Blog Newsletter Social Media Channels III III a SANTA ANA En6B6EMEAT 9BiE 485% WEB31TE PROEUIEW3:248,567 TOP 5 PAGES: 1. Your Guide to the Heart of Orange County 2.Events 3. Fun Things to Do in Santa Ana: Museums & Historic Sites 4. Eat S. Digital Visitors Guide 11THES TO DO In SRHTR flDR29 collaboration with Food, Fun & Faraway Places INFLUENCERS & MEDIA HOSTED Carpe Diem Our Way: 64.7K IG followers Food, Fun & Faraway Places: 95.3K IG followers SoCalFieldtrips: 22.9K IG followers Sometimes Home:12K IG followers Traveling Newlyweds: 73.5K IG followers _ . MEDIA EVENTS International Food, Wine & Travel Writers Association Society of American Travel Writers • TravMedia International Media Marketplace Visit California Media Events Los Angeles & Mexico EARNED MEDIA Travel Santa Ana's public relations efforts earned media coverage in the following: ADVERTISING K71 • Expedia "Always -On" Campaign • Brand USA & Expedia 25,000 Room Nights Canada Campaign $3,893,227 in Hotel Revenue 5,098,072Impressions 222 Room Nights • Expedia OC Campaign $35,368 in Hotel Revenue 20,433 Room Nights $2,482,500 in Hotel Revenue Brand USA & Expedia Mexico Campaign Expedia Mexico Campaign 2,275,263Impressions Room Nights 79 Room Nights in Hotel Revenue $22,920 in Hotel Revenue � rs- Brand USA Coast Magazine • Smart Meetings • Round Trip CA Meetings + Events Houston Woman • Travel Itch Radio with Colleen Kelly , e f SANTA ANA! hA CAPITAb REL EGNOEwR of GnAMDN! { - Arm SOM�WBtiRF mFFFRFni _1 . 6- �- gHTA A may►" i RIGHT WHERE [ SEE ti• 3 nlscauf" A CITY UNLIKE ANYTIME[ _ ■ I . ELSE IN RR ANGE CON" Sum flau 1 twik1 DISCOVER A CITY ONLINE ANYWHERE DISCOVER ELSE IN ORANGE COUNTY. A CITY UNLIKE ANY WHERE ELSE IN ORANGE EOG NTT. MEETINGS IN MEETINGS IN 1 MEET IN SANTA ANA ' SANTA ► S RRE 9 DIFFERENT ARE DIFFERENT ANA MEETINGS IN � � ' S� RRE 4i _ MEET IN SANTA ANAECA SflMAW � y ARE DIFFERENT SANTA ANA. CA q� IMFF Fly i4 ,E 00, BRAT10N5 ,., �� i r► dirt:. y w k .I of C� 00y GEVE8RAT1 ` .. , STAY IN ,c5ANTA ANA Special Hotel Rates for OC Pride Ml NT A 5ANT11 A piSCO u�ua6rtEH THE c giHIIIIM91111 OFFICIAL SANTA ANA UISITORS GUIDE Published the inaugural Santa Ana Visitors Guide. The guide is distributed at California Welcome Centers, Santa Ana hotels, John Wayne Airport, and more locations. A digital version is available in English and Spanish. More than 200 murals and public art are curated into a comprehensive online guide. The guide features images of the art and artist, a description, along with artist information and location. There is a map displaying each location for easy use. Special thanks to the City of Santa Ana and the Public Humanities program at UCI for their efforts, and the research conducted by the Pocket Site's Walking Tour by Mapping Arts Project, Mapping Santa Ana, The Heavy's Public Art Guide, Sparl<OC, and the collection of city -sponsored public artworks. =PROUD SANTANERO o15COVE4 �SANTA ANA'S� cHnNRBIS 3CENE Developed a tourism program to highlight Santa Ana's unique cannabis offerings. The second series of"Proud Santanero" features four locals answering the question "what makes them a Proud Santanero." The locals include: • All Coyle (Ali Coyle Music) • Jeffrey I'll" Jensen (Chapter One: the modern local) • Vanessa Pozzobon (Mission Bar) • Teresa Saldivar (Teresa's Jewelers) The Video series is promoted on YouTube and a designated landing page. ORANGE COUNTY RESTRURRHT WEEK Partnered with Orange County Restaurant Association to support 22 Santa Ana restaurants' participation in OC Restaurant Week. .MRp MM1p ..I EXCELLENCE y1 y1HONDR'NC S11 IN THE MEETINGS INDUSTRY ll]1 Q�Q� � 11 n����UM r �{�Lv 2023 AW QS Kmekingsgroup wozsrvomxsrax mEcrwcs uouv. usco urvuEa ucErvsE � � wtNNfR fj. • Santa Ana Signatures • "Proud Santanero" Campaign • Santa Ana Stickers • Santa Ana Signatures • Visitors Guide • "Always Bet on Us" video 2023 TRHUEL SHITH MR BUDGET SlolS MILLION 2023 SER RN TOURISM MflRRET111G DISTRICT REIEIIUE $1.8 MILLLION SALES £r MARKETING: 80% 0 RESERVES: 8% CITY FEE: 2% m ADMINISTRATION:10% MAW *February 2023 a higher assessment collected due to a hotel coming current on 2022 payments. **Includes carry-over from previous 2022 and 2021 budget. ASSESSMEMII There is no change in the method and basis of levying the assessment. The annual assessment rate is two percent (2%) of gross short-term room rental revenue. Based on the lack of benefit received, assessments will not be collected on revenue resulting from: stays of more than thirty (30) consecutive days; stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty; and stays that any nonprofit organization which, as the result of a disaster, provides at its own expense hotel or motel shelter to any victim of a disaster. The term "gross room rental revenue" as used herein means: the total consideration charged, whether or not received, for the occupancy of a space in a lodging business valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits, property and services of any kind or nature, without any deduction therefrom whatsoever. Gross room rental revenue shall not include any federal, state, or local taxes collected, including but not limited to hotel visitor taxes. The assessment is Levied upon and a direct obligation of the assessed lodging business. However, the assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. The assessment shall be disclosed as the "SATMD Assessment." The assessment is imposed solely upon and is the sole obligation of the assessed lodging business even if it is passed on to transients. The assessment shall not be considered revenue for any purposes, including calculation of hotel visitor taxes.