Title
Authorization to Enter Into Agreement for FY 2022-23 for Tourism and Hospitality Advisory Board Funds (Ordinance S-49156)
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 FY 2022-23 Tourism and Hospitality Advisory Board (THAB) funds. Further request authorization for the City Controller to disburse all funds related to this item.
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 2022-23, $500,000 is appropriated for tourism and hospitality initiatives.
Procurement Information
The 2022-23 funding recommendation is in accordance with City of Phoenix Administrative Regulation 3.10, following the approved City of Phoenix Request for Agreement procurement process.
On Sept. 21, 2022 at the THAB meeting, the GPCVB presented the proposed FY 2022-23 funding request and scope of work for consideration. In partnership with GPCVB, the current funding proposal will help aid in stimulating 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 $150,000 - Represents seven meetings and conventions to be held at the Phoenix Convention Center between November 2022 and August 2023. It is anticipated that these seven groups will generate approximately 48,500 event attendees and delegates, more than 63,000 hotel room nights and more than $668 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 2022-23 or later. The funds will assist newly contracted groups with support in areas of rental abatements, IT costs, AV costs, registration, transportation assistance, or other event hosting services. GPCVB is targeting groups planning to host meeting or events during identified Phoenix Convention Center and Phoenix-area hotel need periods or short-term bookings exploring meeting options in the destination for 2023.
Mega Event Support for the 2023 NFL Super Bowl $200,000 - 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 such hosting costs. This will be the fifth year of a five-year request to support the Super Bowl in 2023.
Mega Event Support for the 2024 NCAA Men's Final Four $125,000 - 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 fourth year of a five-year request to support the NCAA Men's Final Four Tournament in 2024.
Contract Term
The contract term is for five-years with no extension options.
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
The Economic Development and Equity Subcommittee recommended approval of this item at its Oct. 26, 2022 meeting. This item was unanimously approved by the Tourism and Hospitality Advisory Board at its Sept. 21, 2022 meeting.
Department
Responsible Department
This item is submitted by Deputy City Manager Inger Erickson, and the Phoenix Convention Center Department.