Title
Authorization to Enter into Contract with Greater Phoenix Convention & Visitors Bureau (Ordinance S-44627)
Description
Request to authorize the City Manager, or his designee, to enter into a five-year contract with the Greater Phoenix Convention & Visitors Bureau dba Visit Phoenix for services for the Phoenix Convention Center Department (PCCD). Further request authorization for the City Controller to disburse all funds related to this item. This is an expense contract with an aggregate contract value not to exceed $55,237,231.
Report
Summary
Visit Phoenix provides marketing outreach and a sales program to attract conventions and trade shows and promote tourism to the City of Phoenix, including mega events, such as the National Football League (NFL) Super Bowl and the National Collegiate Athletic Association (NCAA) Men's Basketball Final Four. PCCD's current five-year contract with Visit Phoenix expires June 30, 2020.
The work includes, but is not limited to:
- Preparing and implementing an Annual Marketing Plan designed to increase convention and tourism activity for the City
- Preparing and implementing a Trade Media Advertising Plan designed to create interest and showcase the City, its attractions, facilities and culture programs
- Booking of conventions, tradeshows and group business for the Phoenix Convention Center
- Reporting of program effectiveness through the use of benchmark statistics
- Booking of meetings, conferences and other group business for Phoenix hotel and resort properties to maximize room sales and related economic activity
- Increasing the tourism market originating from the United States and international markets
- Supporting Department efforts to achieve its revenue forecasts from Convention Center operations
PCCD has worked with Visit Phoenix on future convention business booked as far out as the year 2030, and is currently working with Visit Phoenix and the local bid committees on finalizing bids for the 2023 NFL Super Bowl and an NCAA Men's Basketball Final Four between the years 2023 and 2026. These organizations are expected to award bids within the next three to six months.
With Visit Phoenix acting as a representative of the City in the bidding processes, the NFL and NCAA will require assurances that Visit Phoenix has an established, confirmed contractual relationship with the City of Phoenix for the years leading up to the potential mega events. As part of the bidding processes, Visit Phoenix is committing deliverables beyond the term of the current contract.
Background Information
Through this longstanding public/private partnership, Visit Phoenix has efficiently provided marketing services for the Phoenix Convention Center (and its predecessor, Phoenix Civic Plaza) since 1968. In Fiscal Year 1998-99, City Council approved the funding formula for the Visit Phoenix contract. The current City Council-adopted formula is based on 60 percent of PCCD's portion of the Hotel/Motel Excise Tax collections, utilizing a three-year rolling average, of which five percent is dedicated to a Phoenix Convention Center Marketing Fund.
Contract Term
The term of this contract will be for five years covering July 1, 2020, through June 30, 2025.
Financial Impact
The estimated expense for the five-year contract is $55,237,231.
Concurrence/Previous Council Action
The Downtown, Aviation, Economy and Innovation Subcommittee recommended this item for approval on May 2, 2018, by a vote of 4-0.
Department
Responsible Department
This item is submitted by Assistant City Manager Milton Dohoney, Jr. and the Phoenix Convention Center Department.