Title
Fiscal Year 2023-24 Tourism and Hospitality Advisory Board Program Contract - RFA PCC 24-0068 Request for Award (Ordinance S-50326)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with the Greater Phoenix Convention and Visitors Bureau (GPCVB) for the Fiscal Year (FY) 2023-24 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 $500,000.
Report
Summary
This contract will provide GPCVB (dba 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 (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 2023-24, $500,000 is appropriated for tourism and hospitality initiatives.
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.
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, the GPCVB 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 Board requested that the PCCD evaluate options to provide a more streamlined process and allow for the Board to have greater input into the proposed funding and scope of work. PCCD worked with the Finance and Law departments on the Boards request and the Request for Agreement (RFA) procurement process was recommended.
Contract Term
The contract will begin on or about December 1, 2023, for a five-year term with no option to extend.
Financial Impact
The contract value will not exceed $500,000 for the five-year 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 Economic Development and Housing (EDH) Subcommittee approved this item by a vote of 4-0 on October 11, 2023.
- The Tourism and Hospitality Advisory Board approved this item by a vote of 8-0 on September 19, 2023.
Department
Responsible Department
This item is submitted by Deputy City Manager John Chan and the Phoenix Convention Center Department.