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CC 2019-09-24_11a Supplemental No. 1 MEMORANDUM TO: CITY COUNCIL FROM: JAMES A. BERGMAN, CITY MANAGER SUBJECT: SUPPLEMENTAL INFORMATION AGENDA ITEM 11.a. – SEPTEMBER 24, 2019 CITY COUNCIL MEETING CONSIDERATION OF SAN LUIS OBISPO COUNTY TOURISM MARKETING DISTRICT (SLOCTMD) RENEWAL DATE: SEPTEMBER 24, 2019 Attached is correspondence received regarding the above referenced item. cc: City Attorney City Clerk Public Review Binder September 24, 2019 RE: Support for the Renewal of the San Luis Obispo County Tourism Marketing District Dear SLO County Supervisors, Mayors and Councilmembers, On behalf of the Central Coast region’s business community, our coalition strongly urges your support for the renewal of the San Luis Obispo County Tourism Marketing District (SLOCTMD) managed by Visit SLO CAL. In less than five years since the SLOCTMD was unanimously approved by the seven cities and SLO County, Visit SLO CAL has added tremendous value to our region and each of our unique communities by accomplishing what none of our individual communities could accomplish alone. The regional partnership model is critical to the future success and competitiveness of our region, not only for tourism, but for the broad economic health and vibrancy of our region and quality of life of all our residents. Nearly five years ago, industry leaders recognized that for SLO County to compete nationally and globally in the tourism industry, we needed to have a regional identity and the collective scaling power that the SLOCTMD provides which led them to organize and create the SLOCTMD. Looking back at the value the SLOTMD provided, industry leaders across the County have petitioned to assess a 1.5% fee on the services they provide for another ten years in order to expand and extend the value that Visit SLO CAL provides to the industry and the community. Visit SLO CAL has created a compelling brand that competes at the highest levels with other destinations like Napa, Sonoma, Monterey and Santa Barbara allowing our region to punch far above the weight class of any individual community, reaching many hundreds of thousands more potential visitors each year. The Travel and Tourism industry is the County’s second largest economic driver. The industry represents 9.7% of the County’s annual GDP and brings broad community benefit. In 2018, Economic data showed that visitors spend $1.81B in SLO County and generate $80.1M in local tax revenue annually. One exemplary example of the collective impact and community benefit of Visit SLO CAL is the addition of so many new flights to new destinations. Over the last 3 years, air service development has been a tremendous boon for SLO County. It is only through the leadership of Visit SLO CAL, the County Board of Supervisors and the SLO County Airport that air service has seen the addition of six new direct flight options, ten new non-stop flights and two new carriers allowing visitors and residents to have direct access to Denver, Seattle, Dallas, Las Vegas, Portland and San Diego. On any given flight, the passengers include a roughly 50/50 split of visitors and residents, proving the efforts of Visit SLO CAL are not only bringing visitors into the County, but providing connectivity for our residents and local business community as well. Renewal of the SLOCTMD will assure we continue to expand air service, which is a key component to our region’s present and future economic success. Lastly, another key indicator of the district’s success cannot be ignored, prior to its formation the average length of a visitor stay was 1.7 nights in SLO County. Now the average length of stay is 3.2 nights. This is very good news for the lodging and business community. It is clear that the collective power of the SLOCTMD for marketing, advertising, and air service development has generated tremendous support for the value and economic benefit it yields for each of our communities. We simply ask for your support for the renewal of the SLOCTMD - a proven success that needs to be enhanced and strengthened. Thank you for your consideration. Sincerely, Jocelyn Brennan President & CEO South County Chambers of Commerce Emily Reneau President & CEO Atascadero Chamber of Commerce Dawn Rodden President & CEO Los Osos/Baywood Park Chamber of Commerce Mary Ann Carson President & CEO Cambria Chamber of Commerce Jessica Maine President & CEO Templeton Chamber of Commerce Erica Crawford President & CEO Morro Bay Chamber of Commerce David Archer President & CEO Pismo Beach Chamber of Commerce Michael E. Manchak President & CEO Economic Vitality Corporation Kevin R. Bumen A.A.E., C.A.E. Director of Airports Melissa James President & CEO Hourglass Project Jeffrey D. Armstrong President Cal Poly