Los Angeles Tourism Marketing District. Tourism is LA’s #1 Industry Industry 1. Tourism 2. Professional Business Services 3. Direct International Trade.

Los Angeles Tourism Marketing District

Tourism is LA’s #1 Industry

Industry

1. Tourism

2. Professional Business Services

3. Direct International Trade

4. Entertainment

5. Wholesale Trade & Logistics

The CompetitionSales and Marketing Budgets

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

Las Vegas Orlando New York San Diego San Francisco Chicago ** Los Angeles* Los Angeles/LAWA*

$32.1M

$26.0M$23.0M

$18.4M

$9.4M

*$5.2 Million restricted for international marketing

**Chicago is exploring the establishment of a TMD.

$94.3M

$54.2M

$5.2M

What is a TMD?

• A business based hotel assessment district of LA City hotels.

• The percentage assessment determined by hotel community.

• Assessment fee is paid by hotel guests.

• Funds dedicated to sales and marketing of Los Angeles.

Why a LA Regional TMD?

• Create sustainable revenue source for marketing Los Angeles and its communities.

• Increase advertising and promotion dollars to effectively compete in domestic leisure markets.

• Add dedicated meeting/convention sales staff to address specific needs of LA’s regions: Downtown, Airport Area, Valley, Westside and South Bay.

• Stimulate and grow the tourism related employment and tax base.

44 California Cities Currently Administer TMD/TID Assessments

SAMPLE CITIES TID ASSESSMENT

Carlsbad $1.00/night

Costa Mesa 2%

Folsom 2%

Huntington Beach 1%

Laguna Beach 2%

Lodi 3%

Long Beach 3%

Pasadena 2.89%

San Diego 2%

San Francisco 1.5%

San Luis Obispo 2%

Santa Clarita $1.00/night

Stockton 2%

Temecula 2%

West Hollywood 1.5%

15 California cities are currently in process of possible TID formation including: Anaheim, Napa County, Newport Beach, Oakland, Santa Barbara, Santa Cruz

Hotel Steering Committee Decisions

What is the room threshold for inclusion in the TMD? – 50+ Rooms

What will be the percentage of assessment? – 1.5% Assessment

Will the assessment be consistent for all regions of the City of Los Angeles? – Consistent for all regions.

What body will govern the TMD – LA Tourism Marketing District Management Corporation

How Los Angeles Compares

CITY TOT EXTRA FEES TOTAL TOT AND FEES

Boston 14.70% 2.75% 17.45%

Anaheim* 15.00% 2.00% 17.00%

Chicago* 15.39% 1.50% 16.89%

Seattle* 15.60% 1.00% 16.60%

San Francisco 14.00% 1.50% 15.50%

Los Angeles 14.00% 1.50% 15.50%

New York 13.38% 1.75% 15.13%

San Diego 10.50% 2.00% 12.50%

Palm Springs 13.50% 2.00% 15.50%

Long Beach 12.00% 3.00% 15.00%

Burbank 10.00% NA 10.00%

Glendale 10.00% NA 10.00%

Source: Smith Travel Research

* Anaheim, Seattle and Chicago are pursuing additional district assessment scenarios.

Increase Visitation to Los Angeles

Advertising & Promotions• National advertising (TV, Print and On-line)• Consumer targeted promotions • Media and public relations• International marketing and advertising

Drive Weekend and Local Visitation

• Discover the Arts

• Red Carpet Summer

• Fall for LA

• Cruise LA

• Dine LA

Increase On-line Presence

• 3 Million Visitors Annually

• Accommodation Listings

• Travelocity Booking Engine

• Regional Guides

• Special Offers Section

• Five Languages• English• Chinese• Japanese• Korean• Spanish

Expand Social Media Outreach

• Over 120,000 + Facebook fans

• Over 4,000 + Twitter followers

• YouTube Channels

Research To Help Your Business

• Monthly Travel Pulse

• Monthly Industry Updates

• Travel Perspective Studies

• Strategic Planning Report

• Convention Calendar

Reach Visitors in Los Angeles

• 1.5 Million Visitors Annually

• Visitor Information Centers• Downtown• Hollywood & Highland• LA Convention Center• Port of LA Terminal (kiosk)

Leverage Events in Los Angeles

• Annual Events• ESPN X Games• Rose Bowl / BCS Championship

• Collegiate Sporting Events

• Youth Sports Tournaments

Next Steps

Initiate Petition Drive July 2010

Implement Destination Perception Research July-September 2010

Finalize Marketing & Sales Plan July-September 2010

Council Hearings/Approval August 2010

Collection Begins Fourth Quarter 2010

Launch Nationwide Advertising Campaign 2011