1. Presentation of Findings Aran Ryan, Tourism Economics
The Economic Impact of the Elimination of Tourism Improvement Districts in California
Presentation of Findings Aran Ryan, Tourism Economics
August 12, 2016

2. California Tourism Improvement Districts
Agenda
California Tourism Improvement Districts
Overview
Rationale
Proven returns
Economic impact analysis: Elimination of TID funding

3. 1. Overview

4. Wisdom of the California model
96 California TIDs with a combined assessment of $207 million
Wisdom of the California model
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5. Model adopted throughout California
CA counties with active TIDs 32
Total active US TIDs
150+
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6. 2. Rationale

7. The vital role of destination promotion
Challenge
Solution: Destination promotion 1
The visitor economy is fragmented
Provides the scope and strategic vision supporting a wide array of individual businesses 2
The primary motivator of a trip is usually the experience of a destination, beyond the offerings of one business
Articulates the brand message that is consistent with consumer motivations 3
Effective marketing requires scale to reach potential visitors
Pools sustained resources to provide the economies of scale and marketing infrastructure required to generate impact
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8. Destination marketing = Economic Development
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9. TID advantages Notable characteristics of the TID model Focused Stable
Account- able
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10. 3. Proven returns of the TID structure

11. TIDs measure and report results
Proven results across nine measurement categories 
Marketing ROI studies
Press and PR reports
Website and inquiry conversion studies
Perception and image studies
Group sales results
Social media followers and interactions
Website hotel booking referrals
Tax revenue collections
Event development
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12. TMD funds held in limbo during much of 2013
Case studies
San Diego
TMD funds held in limbo during much of 2013
Immediate and significant slowdown in demand and a loss of pricing power
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13. 4. Economic impact analysis: Elimination of TID funding

14. Loss of a portion of out-of-state visitors and their spending
Scenario assumptions
TID elimination scenario
Loss of a portion of out-of-state visitors and their spending
Entire elimination of $207 million of annual TID funding for CA destination marketing organizations (DMOs)
Proportionate reduction in DMO activities, such as group sales and leisure marketing
Loss of California jobs, income and tax revenues in tourism and downstream sectors
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15. Reduction in DMO activities
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16. Group sales impacts
Negative impacts as a result of reduced group sales
$39 million less spending on group sales
2.2 million lost room nights
$719 million of lost out-of- state spending
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17. Non-group marketing impacts
Negative impacts with reduced non-group marketing
$154 million less spending on marketing
8.1 million lost room nights
$2.6 billion of lost out-of- state spending
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18. Total visitor spending reduction
8.2 million fewer out-of-state visitors
Total visitor spending reduction
22.8 million fewer visitor nights, including 10.4 million fewer hotel room nights
Elimination of $207 million of TID funding results in:
$3.3
billion reduction in visitor spending
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19. Total economic impact results
Elimination of $207 million of TID funding results in:
Tourism (direct)
CA economy (total)
Lost output (business sales)
$3.3 billion
$6.4 billion
Lost jobs
32,000
52,000
Lost labor income
$1.0 billion
$2.1 billion
Lost state and local taxes
$177 million of lodging taxes
$460 million
Annual impacts
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20. Impacts in context
Lost tax revenues that would cover starting salaries of 11,000 teachers
Lost income equivalent $160 per CA household
Lost jobs equivalent to an increase in CA unemployment rate to 6.5%, up from 6.2%
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21. Conclusion

22. In contrast to TID elimination…
Continued support of the TID model
+ Supplements existing destination marketing
+ Attracts incremental visitors
+ Supports 52,000 jobs for local residents
+ Supports $460 million of tax revenues for local governments annually
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