Title
Fiscal Year 2025-26 Tourism and Hospitality Advisory Board Program Contract - RFA PCC 26-0059 Request for Award (Ordinance S-52317) - Citywide
Description
Request to authorize the City Manager, or the City Manager's designee, to enter into a contract with the Greater Phoenix Convention & Visitors Bureau dba Visit Phoenix for the Fiscal Year (FY) 2025-26 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 $670,000.
Report
Summary
This contract will provide Visit Phoenix, in coordination with the City of Phoenix's THAB, funding to stimulate the local tourism and hospitality industry and assist in increasing activity to local hotels and businesses.
The 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 Visit Phoenix. For FY 2025-26, $670,000 is appropriated for tourism and hospitality initiatives.
Visit Phoenix presented the proposed FY 2025-26 funding request and scope of work for consideration at the annual THAB meeting on September 15, 2025. 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 ($440,000) - Groups identified in this request represent 29 meetings and conventions taking place at the Phoenix Convention Center (PCC) between December 2025 and October 2028. These conventions and events are expected to bring 150,300 event attendees and delegates to the PCC and downtown Phoenix, generating an estimated 219,365 room nights and producing $528 in direct spending locally for every $1 of THAB funds invested.
- Phoenix Convention Center Promotion Support ($50,000) - Funds will be used for hosting support for new bookings contracted during FY 2025-26 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.
- Phoenix Sports & Events Commission ($30,000) - Phoenix City Council approved the formation of the Phoenix Sports & Events Commission in June 2024. This new commission will operate as a department within Visit Phoenix and will proactively attract a diverse roster of sports and major events to Phoenix. During the June 2024 City Council meeting, the Council also established funding support for the new commission for a three-year period. As part of the approved agreement, $30,000 from THAB funds will be distributed to the Sports & Events Commission to support hosting commitments for targeted events. Visit Phoenix will update the Board in future meetings as to the use and impact of these funds.
- Mega Event Support Fund ($150,000) - 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 this area of THAB funds will primarily be utilized to reimburse Phoenix Convention Center for costs associated with hosting game-related events and activities in Phoenix. These funds will remain separate from Visit Phoenix funding support for the Local Organizing Committee, ensuring the 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 THAB 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, 2025, for a five-year term with no options to extend.
Financial Impact
The aggregate contract value will not exceed $670,000 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 15, 2025, 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.