Tourism Business Improvement District Approved in Newport Beach
New Funding Approach to Accelerate Hotel Room Sales and Marketing Efforts During Economic Downturn.
JUNE 9, 2009 - In an aggressive attempt to thwart the effects of the current national economic downturn on local tourism, the Newport Beach Conference and Visitors Bureau and the City of Newport Beach have created the Newport Beach Tourism Business Improvement District (TBID). Recently approved by the Newport Beach City Council, this all-new benefit assessment district is designed to accelerate direct sales and marketing efforts to group oriented hotels at a time when gaining market share is critical.
This increasingly popular funding approach has been used successfully in other destination areas throughout California to improve tourism and drive additional room nights. The assessment includes six initial group sales oriented hotels in Newport Beach: Balboa Bay Club & Resort, Fairmont Newport Beach, Hyatt Regency Newport Beach, Newport Beach Marriott Bayview, Newport Beach Marriott Hotel & Spa and Radisson Hotel Newport Beach.
The NCVB, with the support of its board of directors, successfully implemented the TBID to compliment the city's Transient Occupancy Tax (TOT) funding for the 2009-10 fiscal year. The TBID represents 2% on room rates and the assessment began May 15. Funds generated by the TBID will be used to enhance the sales and marketing efforts of the NBCVB sales and marketing teams. The hotels that are part of the TBID will benefit directly by the sales efforts of the CVB.
"Newport Beach is fortunate to have a knowledgeable and cohesive hospitality community, coupled with forward-thinking and supportive city leaders, who saw the benefits of implementing the TBID," said Gary C. Sherwin, President and CEO of Newport Beach Conference & Visitors Bureau. "Although labeled with the currently challenging reputation of being a luxury destination, the TBID will help us to continue to successfully market and sell the city during these difficult economic times."
Collections for the TBID will permit the assessed inaugural properties increased opportunities to participate in sales missions, trade shows and sales calls. It also frees up other resources to increase online marketing initiatives and increase advertising and social media. Cities across California are employing this new funding strategy to more competitively sell in an increasingly more aggressive marketplace, especially in the group sales arena.
"Never before have hotels and destinations had a more challenging environment in which to compete for business particularly in the group market," stated Paul Cahill, General Manager of the Newport Beach Marriott & Spa (a TBID partner). "This is about a community of hotels who are willing to work together to gain better market share for our city. By creating this TBID, this effort will allow us to expand our voice and will accelerate our recovery in the years ahead."
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