Title
Authorization to Enter into an Agreement for Fiscal Year 2023-24 Tourism and Hospitality Advisory Board Funds
Description
This report requests the Economic Development and Housing Subcommittee recommend City Council approval to enter into a contract with the Greater Phoenix Convention and Visitors Bureau (GPCVB) for Fiscal Year (FY) 2023-24 THAB Funds.
THIS ITEM IS FOR CONSENT ACTION.
Report
Summary
The Tourism and Hospitality Advisory Board (THAB) 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 the GPCVB. For FY 2023-2024, $500,000 is appropriated for tourism and hospitality initiatives.
Procurement Information
The FY 2023-24 funding recommendation is in accordance with City of Phoenix Administrative Regulation 3.10 following the approved City of Phoenix Request for Agreement (RFA) procurement process.
GPCVB presented the proposed FY 2023-24 funding request and scope of work for consideration at the annual THAB meeting that was held on Sept. 19, 2023. In partnership with GPCVB, 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, the GPCVB will utilize THAB funding in the following areas to support the City's tourism and hospitality industry now and over the next several years:
Convention Client Hosting Obligations ($225,000) - Represents twenty meetings and conventions to be held at the Phoenix Convention Center between January 2024 and January 2026. It is anticipated that these 20 groups will generate approximately 68,000 event attendees and delegates, more than 115,000 hotel room nights and more than $450 in direct spending for every dollar invested.
Phoenix Convention Center Promotional Support ($25,000) - Funds will be used to attract and support new convention business contracted during FY 2023-24 or later. The 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. GPCVB is targeting groups planning to host meetings or events during identified Phoenix Convention Center and Phoenix-area hotel need periods.
Mega Event support for the 2024 NCAA Men's Final Four ($250,000) - Funds will be utilized to offset expenses such as facility costs, personnel, public safety, traffic barricades and street closures, fan and media events and other related hosting costs. This will be the fifth year of a five-year request to support the NCAA Men's Final Four tournament in 2024.
Contract Term
The contract term is five years with no option to extend.
Financial Impact
The budget will not exceed $500,000 over the life of the contract. THAB is funded through the Sports Facilities Fund, which is the hospitality industry's share of special excise taxes on hotel/motel lodging and rental cars.
Concurrence/Previous Council Action
This item was unanimously approved by the Tourism and Hospitality Advisory Board at its September 19, 2023, meeting.
Department
Responsible Department
This item is submitted by Deputy City Manager John Chan and the Phoenix Convention Center Department.