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HomeMy WebLinkAboutItem 11 - 2025 Travel Santa Ana Annual Report Community Development Agency www.santa-ana.org/cd Item # 11 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 5, 2026 TOPIC: 2025 Travel Santa Ana Annual Report AGENDA TITLE 2025 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 all lodging businesses with seventy (70) rooms or more located within the boundaries of the City of Santa Ana (City). The established SATMD currently includes 17 hotels in the City. The annual assessment rate is two percent (2%) of gross short-term room rental revenue and the original SATMD designation had a five (5) year term, which began January 1, 2021 and ended on December 31, 2025. On July 1, 2025, the City Council approved a renewal of the SATMD for an additional ten (10) years per the Property and Business Improvement District Law of 1994. Travel Santa Ana, the non-profit 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. Their multifaceted approach, combining digital marketing campaigns, community engagement, and strategic partnerships, has fostered a vibrant tourism ecosystem, boosting local businesses and showcasing the City's rich cultural heritage. Travel Santa Ana has created a narrative that resonates with travelers of all backgrounds by highlighting the diverse tapestry of experiences the City has to offer, from its bustling arts scene to its culinary delights and historical landmarks. Each year, Travel Santa Ana is required to submit a report to City Council. The Annual Report (Exhibit 1) confirms that there are no proposed changes to the district boundaries, provides a budget of costs associates with the activities, and highlights the 2025 Travel Santa Ana Annual Report May 5, 2026 Page 2 successful marketing and promotional activities accomplished in 2025. Some key highlights from the report include: • Tourism Growth: Santa Ana welcomed 906,700 visitors in 2024, a 3.6% increase year-over-year, generating $394.2 million in direct travel spending. • Economic Impact: Visitor activity supported 3,110 local jobs, $148 million in wages, and generated $27.5 million in tax revenue that supports City services such as public safety, parks, and infrastructure. • Hotel Performance: Santa Ana's 17 hotels (2,770 rooms) produced over $77 million in annual revenue, with an average occupancy of 70.8% and average daily rate of$121.37. • Sales and Marketing Results: Travel Santa Ana participated in 26 trade shows and 1,080 industry appointments, generating 95 qualified leads and $6.6 million in potential hotel revenue. • Destination Marketing Reach: Digital and advertising campaigns generated millions of impressions and more than 86,000 hotel room nights, producing over $11 million in hotel revenue. • Community and Visitor Programs: New initiatives such as the Visitor Loyalty Program and Santa Ana Enthusiast Program promote local businesses and strengthen community engagement in the tourism industry. FISCAL IMPACT There is no fiscal impact associated with this action. EXHIBIT(S) 1. 2025 Annual Report Submitted By: Michael L. Garcia, Executive Director, Community Development Agency Approved By: Alvaro Nunez, City Manager C TRAVEL TRAVEL A ►� OIL Trauel ra 2025 RflNUflL REPORT 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. Travel Santa Ana is a nonprofit 501(c)(6), 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. The SATMD was renewed for a 10-year term beginning]anuary 1,2026-December 31,2035. 2024-2026 TRAVEb SANTA ANA BOARD Of DIRECTORS Chair:Aaron Saliba,General Manager,Hotel Zessa a DoubleTree by Hilton Vice Chair:Vacant Treasurer:Ryan Chase,Owner,4th Street Market Secretary:Erin Warady,Marketing Chair/CMO,Cannabis Chamber of Commerce At-Large: Frank Atayde,General Manager,Holiday Inn Orange County Airport De'andre Gipson,General Manager,Courtyard Costa Mesa South Coast Metro Marc Morley,Economic Development Manager,City of Santa Ana r Cory Sams,General Manager,MainPlace Mall i Quinn Su,General Manager,Orange County Hotel MARHETING ADVISORY GROUP Logan Crow,Executive Director&Founder, Frida Cinema/DTSA Artwalk Paul Eakins,Public Affairs information Officer,City of Santa Ana Cori Lantz,Recreation b Community Services Supervisor,City of Santa Ana Parks 5 Recreation Scott Melvin,Vice President of School Relations,Mater Dei High School I(elly Radomske,Vice President of External Affairs,Bowers Museum jT AnnaSophia Servin,Public Information Officer,John Wayne Airport Maribel Silva,Operations Coordinator,Santa Ana Zoo Daniela Valencia,Marketing Director,MainPlace Mall ]ason(]-Bird)Venable,Co-Founder,Suavecito Erin Warady,Marketing Chair/CMO,Cannabis Chamber of Commerce - Cherie Whyte,Vice President,Marketing,Discovery Cube t a r � r) WENDY HAASE-ROBERTS, CDME President Er CEO ANALAURA BECERRA, CDME, CMP, CTA Director of Sales MARIA GONZALEZ, PDM, CTA Content£r Community Engagement Manager EXHIBIT 1 B OF A& 1 W"ff N D h,ANN R` 1 1 E SO L --A The Santa Ana Tourism Marketing District (TMD) includes 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 map below, currently includes seventeen (17) lodging businesses that have seventy (70) rooms or more.There are no proposed changes to the TMD boundary. 3 D GARDEN GROVE BLVD. Z y SANTA CLARA AVE. D � a O D O v D y y K 17th ST. 17th ST. 2 Z y F j n 2 p Z p O m r C CIVIC CENTER DR. j � O H y SANTA NA BLVD. 41h ST. 1st ST. 3rd ST. 1st ST. D ti D K O Z P O K K G MCFADDEN AVE. MCFADDEN AVE. EDINGER AVE. x a F A D v a WARNER AVE. n O ti � ~ y O � WARNER AVE. DYER RD. SEGERSTROM AVE. D O D < f Z P y 1 y MACARTHUR BLVD. . r SANTA ANA HOTEb INVENTORY Location all MMeeting Space Best Western Plus Orange County Airport North 2700 Hotel Terrace Drive 148 1 Room,750 sq.ft. California Lodge Suites 2909 S.Bristol St. 181 Guestrooms only City Express by Marriott Santa Ana/ 2720 Hotel Terrace Drive 121 1 Room,400 sq.ft. Orange County Airport Comfort Inn&Suites Orange County lohn Wayne Airport 2620 Hotel Terrace Drive 127 Guestrooms only 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 Embassy Suites-Santa Ana Orange County Airport 1325 E.Dyer Road 301 9 Rooms,Largest 4,407 sq.ft.,7,629 sq.ft.total Holiday Inn Express&Suites Santa Ana Orange County 1600 E.1st St. 161 8 Rooms(1 per floor),Each 600 sq.ft. Holiday Inn Santa Ana Orange County Airport 2726 S.Grand Ave. 176 5 Rooms,Largest 1,866 sq.ft.,5,000 sq.ft.total Hotel Zessa a DoubleTree by Hilton 201 E.MacArthur Blvd. 253 5 rooms,Largest 7,308 sq.ft.,8,638 sq.ft.total La Quinta by Wyndham Orange County Airport 2721 Hotel Terrace Drive 181 Guestrooms only Mainstay Suites Orange County lohn Wayne Airport 2701 Hotel Terrace Drive 176 Guestrooms only Motel 6 Santa Ana/Irvine Orange County Airport 1717 E.Dyer Road 150 Guestrooms only Motel 6 Santa Ana 1623 E.1st St. 80 Guestrooms only Orange County Hotel 7 Hutton Center Drive 168 3 rooms,Largest 1,848 sq.ft.,3,976 sq.ft.total Red Roof Inn Santa Ana 2600 N.Main St. 125 Guestrooms only Sonesta Simply Suites Orange County Airport 2600 S.Red Hill Ave. 122 Guestrooms only TOTAL GUESTROOMS . � r EXHIBIT 1 HOTEL OUERUIEN Santa Ana Hotel Inventory: 2,770 rooms at 27 hotels *Hampton Inn&Suites Santa Ana Orange County Airport rebranded to City Express by Marriott Santa Ana/Orange County Airport Hotel Annual Revenue: Over $77 Million* Hotel Visitor Tax: $9.5 Million Tourism Marketing District Revenue: $2.5 Million Hotel Average Daily Rate: $222.37* Hotel Occupancy: 70.8%* r• r I1 r r r j r r r r rrr• r r r 'rr rr r •rr r ' • r rrr •rr• r r r rr r r• r r r r r r r r r r � i EXHIBIT 1 THE WORK Of R DESTInflTION ORGHnIZRTIOn LVISIT 2. bIVE If you built a place where And if you built a place people want to visit,then where people want to live, you have built a place then you have built a place where people want to live. where people want to work. It Starts With A Visit That is the THE , m Visit, . COMMU111TY , Destination UITflLITY ' Organization To Invest WNEEL You Need To Keep The Wheet Turning and Manage Its Spee 'RAND MANAGEMENT PAND INV STMENT P 4. INVEST 3. WORK And if you built place where PROMOTION AND Sp►.ES And if you built place business and residents will invest, where people want to then you have built a place where work,then you have built people will want to visit. a place where business and residents will invest. EXHIBIT 1 TOURISM MATTERS 2024 DIRECT TRRUEL IMPRCTS TO 3flnTfl Rflfl ji� o _ t Y $394.2 MILLION - $27.5 MILLION �o DIRECT TRRUEL SPENDING IN TAXES BY DIRECT R TRAVEL SPENDING YOY INCREASE OF 4.8% 9069700 UISITORS YOYINCREASEOF3.6% c JL 1 3,220 SANTA ANA LOBS ARE SUPPORTED BY VISITORS EQUALING $248 MILLION IN WAGES TO SANTA ANA'S ECONOMY! EXHIBIT 1 TOURISM MATTERS .117 MILLIU11 Retail sales Food stores Ora Ulf I Local.,Ion $109 MILLION trans&portation Dining gas $18 MILLION Arts, entertainment, & recreation Accommodations Santa Ana households would pay $170 more a year in local taxes without visitor-generated taxes received by local government. These numbers are estimates from the Economic impact of Travel report,Calendar Year 2024,a tourism economic impact study conducted by Dean Runyan Associates for Santa Ana. TOURISM REUBUE HELPS TO SUPPORT: NEIGHBORHOOD SERVICES A I ARTS& A ME& CULTURE a dill AWk IDT saHraaua POLICE PARKS&RECREATIONPUBLIC SAFETY PUBLIC INFRASTRUCTURE EXHIBIT 1 1VISITOR PROFIbjmft_-'�' __ TOP ORIGIN MARKETS SAN RANCI 0 YORK AS VEGAS PHOENIX DALLAS o<D Q HOUSTON o� AVERAGE DAILY VISITOR SPEND: $57 CALL MARKETS) TOP 20 VISITOR MARKETS DAILY SPEND* San Diego,CA 16% 5% $49 Los Angeles,CA 15% 3% $40 San Francisco-Oaldand-San lose,CA 9% 10% $46 Phoenix-Prescott,AZ 5% 5% $52 Las Vegas,NV 3% 3% $56 Sacramento-Stockton-Modesto,CA 3% 4% $45 Santa Barbara-Santa Maria-San Luis Obispo,CA 3% 1% $56 Bakersfield,CA 2% 1% $49 New York,NY 2% 3% $51 Fresno-Visalia,CA 2% 2% $64 *Does not include accommodation spend. UISITOR SPEIIDIIIG BY HOUSEHOLD 111COME UISITOR SPEnDIHO BY ROE % OF UISITORS BY CHILDREII In HOUSEHOLD $1511(+ 35-44 CHILDREN IN HOUSEHOLD YES P NO $101K-1501( 45-54 $81K-1001( 25-34 $611(-801( $411(-601( 65+ 40% $211(-401( 55-64 LESS THAN 201( 18-24 Visitor data tracked by Zartico.International data no longer available. EXHIBIT 1 Mission To share Santa Ana with the world. U1310H Santa Ana is the authentic&welcoming Orange County experience. URI INVE PASSION INCLUSIVENESS COLLABORATION RELEVANCE AWARENESS We are passionate in We are diverse We value and respect We are valued in our We are aware of our our efforts to strengthen and inclusive. each other,and recognize community for our community's cultural our community's All are welcome. we are stronger when we leadership,expertise, heritage and history and economic vitality. work together. and integrity. continue to ask questions and learn. oil �* vARE y ftqos, • r ,l� 9 : f I. I'i ��11"III I'IIITIII^f�i 16i•''f Mli'N i1ME BE ALTA RES Mol jNtjo 7�7 ill 2 1; All ep I EXHIBIT 1 1 2025-2027 1 Refine and Amplify Messaging Leverage Events and Festivals to Reinforce Partnerships to Foster Community Pride to to Target Markets Drive Overnight Stays Extend Effectiveness Boost Santa Ana's Reputation INDICATORS INDICATORS INDICATORS INDICATORS •Year-over-year growth of total •Year-over-year increase in room •Year-over-year growth of local •Growth in Tourism Academy economic impact nights attributable to events businesses participating in participation •Year-over-year growth in room &festivals incentive program •Increase resident sentiment on nights •Year-over-year growth in count •Year-over-year growth in room City by2026 •Increase in City-issued film of established event promoter nights attributable to City- •Grow Health&Safety score on permits partnerships supported organizations,events, stakeholder survey from current •Annual use of at least 90%of and sports lowest score of 2.25 Opportunity Funds •Growth in earned media value on Santa Ana food/beverage coverage STRATEGIES STRATEGIES STRATEGIES STRATEGIES •Conduct a visitor study to build •Further develop relationships with •Work with tourism partners •Create an awareness campaign a data-informed basis for market event organizers who have the including restaurants,retail,and for residents promoting Santa targeting capacity and desire to grow events attractions to develop an incentive Ana and highlighting the work of •Amplify our message to Mexico •Explore the creation of a mural program for hotel guests Travel Santa Ana and Canada festival in Santa Ana •Execute a MOU with the City to •Work with Economic Development •Identify and focus on meeting •Explore the creation of multi-day assign stays within Santa Ana for and the City to help promote and market targets that work for our events that are aligned with City-supported organizations, build local pride hotels and destination the diversity and creativity of events,and sports •Continue to promote Santa Ana as •Explore partnerships to leverage the community and our a safe and clean destination non-City owned sports facilities to destination brand expand sports tourism •Partner with the City and Parks& •Position Santa Ana as a vibrant Recreation to develop a Santa Ana- film destination focused World Cup fan fest in 2026 •Adopt a readiness stance for the •Continue efforts to promote expansion of cannabis tourism Santa Ana as a food and beverage destination AL it l tf �lip -_, S EXHIBIT 1 i •Build awareness of Santa Ana's assets and the destination through storytelling via video,imagery,and content. •Position Santa Ana as a desirable Southern California meeting destination for appropriate domestic and international groups. •Drive measurable web traffic through a mix of earned,paid,and owned media. • Support hotels'efforts to increase bookings by prospecting select drive-centric geographic markets,high inbound air-traffic locations,and small-market states. •Amplify 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 through attendance at sales missions and tradeshows. •Develop creative marketing campaigns that drive awareness and bookings. •Implement a strategic marketing mix that drives conversions among target demographics. •Test and track each marketing initiative to optimize performance. •Adjust campaigns on an ongoing basis to achieve key performance metrics and maximize ROI. R° COMM ITY SUSTRINULE RLIGI1MEIIT ORGROWRTIOU 0, 1 f, N