Draft narrative effective January 1, 2013
The San Diego Tourism Marketing District (the District) follows the Tourism Business Improvement District (TBID) model, which utilizes the efficiencies of private sector operation in the market-based promotion of local and regional tourism for the targeted benefit of assessed businesses. TBIDs, such as this District, allow lodging businesses to organize their efforts to increase tourism, specifically the consumption of hotel rooms as measured by room night stays, achieving economies of scale they could not otherwise achieve.
In San Diego, lodging businesses within the District will be assessed and those funds will be used to provide privileges, programs and services directly to the assessed lodging businesses that specifically benefit those businesses.
District-funded programs and services designed to deliver incremental new room night sales to assessed businesses may include, but are not limited to:
- Marketing of the Assessed Businesses
- Tourism Promotion Activities
- Special Events and Programs
In California, TBIDs such as the District are formed pursuant to the Property and Business Improvement District Law of 1994 (PBID Law), the Parking and Business Improvement Area Law of 1989 (BID Law), or pursuant to an ordinance of a Charter City. In San Diego, the City Council adopted a local TBID enabling (procedural) ordinance similar to the 1994 PBID Law. This State statute and the City procedural ordinance allow creation of a special benefit assessment district to raise funds within a specific geographic area, in this case the city of San Diego, for the purpose of improving room occupancy and room night sales for assessed businesses.
There are many benefits to TBIDs:
- Funds must be spent to provide privileges or a specific benefit only to those who pay;
- Funds cannot be diverted for other government programs;
- Activities are customized to fit the needs of businesses in each TBID;
- Petition support is required from lodging businesses paying over 50% of the annual proposed assessment (this is true both under San Diego’s procedural ordinance and the 1994 PBID Law);
- They are designed by those who will pay the assessment; and
- They provide a stable funding source for tourism promotion that will result in the generation of incremental new room night sales for assessed businesses.
The Tourism Marketing District is citywide, inclusive of all areas within the city limits of the City of San Diego.