Title
Fiscal Year 2024-25 Tourism and Hospitality Advisory Board Program Contract RFA PCC 24-0420 - Request for Award (Ordinance S-51356) - Citywide
Description
Request to authorize the City Manager, or his designee, to enter into a contract with the Greater Phoenix Convention and Visitors Bureau dba Visit Phoenix for the Fiscal Year (FY) 2024-25 Tourism and Hospitality Advisory Board (THAB) program to provide tourism and hospitality initiatives for the Phoenix Convention Center Department (PCCD). Further request to authorize the City Controller to disburse all funds related to this item. The total value of the contract will not exceed $590,000.
Report
Summary
This contract will provide Visit Phoenix, in coordination with City of Phoenix's Tourism and Hospitality Advisory Board, funding to stimulate the local tourism and hospitality industry and assist in increasing activity to local hotels and businesses.
The Tourism and Hospitality Advisory Board is the City of Phoenix board that annually reviews and recommends projects and/or programs that enhance the city's tourism and hospitality industry. The 14-member board is comprised of eight hoteliers (one from each Council district), two at-large members from hospitality-related industries, two citywide representatives, one non-voting representative from City staff and one non-voting member from Visit Phoenix. For FY 2024-25, $590,000 is appropriated for tourism and hospitality initiatives.
Visit Phoenix presented the proposed FY 2024-25 funding request and scope of work for consideration at the annual THAB meeting on September 30, 2024. In partnership with Visit Phoenix, the current funding proposal will help to stimulate the local tourism and hospitality industry and assist in increasing activity to hotels and businesses in the local area. Under the proposal, Visit Phoenix will utilize THAB funds in the following areas to support the city's tourism and hospitality industry now and over the next several years:
- Convention Center Hosting Obligations ($340,000) - Groups identified in this request represent 21 meetings and conventions taking place at the Phoenix Convention Center (PCC) between December 2024 and June 2026. These conventions and events are expected to bring 136,000 event attendees and delegates to the PCC and downtown Phoenix, generating more than 135,000 room nights and producing $600 in direct spending locally for every $1 of THAB funds invested.
- Phoenix Convention Center Promotion Support ($45,000) - Funds will be used for hosting support for new bookings contracted during FY 2024-25 or later and will complement contributions committed by downtown Phoenix hotels, the PCC and Visit Phoenix. Funds will assist newly contracted groups with support in areas of rental abatements, IT and audio-visual costs, registration, transportation assistance or other event hosting services. Visit Phoenix is targeting groups planning to host meetings or events during identified PCC and Phoenix-area hotel need periods.
- Religious Conference Management Association (RCMA) Emerge Commitment Amount ($75,000) - Visit Phoenix is working with RCMA event planners to host a conference in January 2025 that will showcase Phoenix as the premier destination to host religious meetings and conventions. The event will utilize the PCC and other City venues and includes a community service project in the city. THAB funds will assist with offsetting catering expenses in the PCC. Visit Phoenix will provide backup of invoices paid on this item. The conference is estimated to draw 900 attendees, generate 3,300 hotel room and produce $1.4 million in direct spending.
- Phoenix Sports & Events Commission Support Commitment Amount ($30,000) - The Phoenix City Council approved the formation of the Phoenix Sports & Events Commission on June 26, 2024. The Commission will operate as a department within Visit Phoenix and will proactively attract a diverse roster of sports and special events to Phoenix. The City Council's approval also included financial support of $30,000 annually from THAB funds for the Commission for a three-year period. This year’s funds will remain encumbered with Visit Phoenix until an Executive Director is hired later this year.
- Mega Event Support Fund ($100,000) - Phoenix has become the premier destination to host mega events: Super Bowl, Men's Final Four and professional all-star games. Phoenix will host the NCAA Women's Basketball Final Four in 2026 and the NBA All-Star Game in 2027. Visit Phoenix will confirm that THAB funds requested are primarily utilized to reimburse PCCD for costs associated with hosting mega events and activities in Phoenix. These funds will remain separate from Visit Phoenix funding support for the Local Organizing Committee, ensuring THAB dollars are used in the City of Phoenix. The balance of these funds is intended to be used to offset costs associated with other game-related events taking place mostly in downtown Phoenix.
Procurement Information
In accordance with Administrative Regulation 3.10, standard competition was waived as a result of an approved Determination Memo based on the following reason: Special Circumstances Without Competition.
Due to its core mission, Visit Phoenix is uniquely qualified to deliver the scope of work and has been the sole destination marketing organization for the City of Phoenix since its inception in 1967. As such, during the 2018 annual meeting, the Tourism and Hospitality Advisory Board requested that the PCCD evaluate options to provide a more streamlined process and allow for THAB to have greater input into the proposed funding and scope of work. PCCD worked with the City's Finance and Law departments on THAB's request, and the Request for Agreement (RFA) procurement process was recommended.
Contract Term
The contract will begin on or about November 1, 2024, for a five-year term with no options to extend.
Financial Impact
The aggregate contract value for will not exceed $590,000 for the five-year aggregate term.
Funding is available in the Sports Facilities Fund, which is the hospitality industry's share of the special excise taxes on hotel/motel lodging and rental cars.
Concurrence/Previous Council Action
The Tourism and Hospitality Advisory Board recommended approval of this item on September 30, 2024, by a vote of 9-0.
The City Council approved the formation of the Phoenix Sports & Events Commission (Ordinance S-51108) on June 26, 2024.
Department
Responsible Department
This item is submitted by Deputy City Manager John Chan and the Phoenix Convention Center Department.