TITLE
Recommendation to authorize City Manager to execute the Eighth Amendment to Agreement No. 28164 with the Long Beach Area Convention and Visitors Bureau, Inc., to provide funding in the amount of $3,428,676 for Fiscal Year 2011. (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. On October 19, 2004, as part of the Second Amendment the City Council extended the initial five-year term by an additional seven years, through September 30, 2014. The agreement is amended annually to reflect the level of funding appropriated by the City Council.
It is requested that the City Council authorize an Eighth Amendment to Agreement No. 28164 with the CVB for Fiscal Year 2011 for a total amount of $3,428,676. This amount reflects a reduction of $386,690. As in prior years, the proposed amendment includes funding for various promotional activities that support the City’s economic development objectives such as the Grand Prix.
During previous years, the CVB contributed to a 36 percent growth in hotel room sales in Long Beach. This year, both the hotel occupancy rate and the average room rate have increased slightly over the same period last year (73.42 percent vs. 73.05 percent and $120.48 vs. $118.91/room). Although there has been a small increase, Long Beach and other areas continue to be impacted from the nationwide economic situation. Therefore, the CVB’s proposed amendment with the City for Fiscal Year 2011 will be key to ensuring a continuous promotion of the city as a convention and tourist destination. As a result of the CVB’s efforts, it has received five of the most influential and...
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