TITLE
Recommendation to authorize City Manager, or designee, to execute the Fifteenth Amendment to Agreement No. 28164 with the Long Beach Area Convention and Visitors Bureau, Inc., to extend for a one-year period and to provide funding in the amount of $4,708,676 for Fiscal Year 2018. (Citywide)
DISCUSSION
On October 1, 2002, the City Council approved an agreement with the Long Beach Area Convention and Visitors Bureau, Inc. (CVB), to develop a program to promote the City as a convention and tourist destination. Since that time, the CVB has been administering a marketing program to establish the City as a site for conventions and tourism by promoting its attractions, resources, climate, and facilities. The agreement is amended annually to extend the term and to reflect the level of funding appropriated by the City Council.
On September 5, 2017, the City Council adopted the Fiscal Year 2018 (FY 18) Budget, which includes funding for the agreement with the CVB in the amount of $4,708,676, an increase of $100,000 from FY 17. The increase will enhance the CVB’s ability to promote tourism and conventions in Long Beach. Monies used for the contract are restricted funds from two sources: the Special Advertising and Promotion Fund and the Rainbow Harbor Area Fund. As in prior years, the proposed amendment includes funding for various promotional activities that support the City's economic development objectives.
In 2017, both the hotel occupancy and the average room rates reflect an increase from January to June compared to the same period last year. The hotel occupancy rate increased 1.6 percent from 80.59 percent to 81.89 percent, and the average daily room rate increased 5.5 percent from $171.23 to $180.62. Long Beach and other areas are continuing to see growth in the hotel industry, realizing an increase since the industry was significantly impacted from the nationwide economic situation. The CVB's proposed amendment with the City for FY 18 will be key t...
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