Sonoma County & Sonoma County Tourism to add 2% BIA assessment to all STRs

[Donna1157]

“SCT [Sonoma County Tourism] believes that now is the time to eliminate the revenue threshold so that short-term rentals can enjoy greater visibility across SCT’s marketing channels and benefit from the robust marketing programs.”

Should this measure pass- and I have no doubts it will - Will Airbnb set up a mechanism to ALSO deduct the BIA along with TOT?

See full announcement here:
https://www.sonomacounty.com/partners/sonoma-county-tourism-bia-revision 

First Town Hall: October 25th at 6:00 pm 

Register in advance for this meeting

Second Town Hall: October 27th at 12:00 pm  

Register in advance for this meeting

See in Resources:

"The BIA payment is an assessment, rather than a tax, that is placed on a guest’s room folio and charged back to each guest upon departure. The BIA assessment is 2% of the total revenue collected from rents charged. That rate will not change under this proposed amendment. The only proposed change is removal of the $350,000 revenue threshold. The procedure for collection is established by the TOT collecting agency in each municipality.Under the proposed amendment, the assessment will be collected from all lodging properties, including hosted and whole house vacation rentals, bed & breakfast establishments or smaller hotels/motels not currently contributing. If you work with a property management company, please check with them to determine if the BIA
assessment is already being paid."
 Letter to BIA Properties 

Resources:

• Letter to BIA Properties  
• County of Sonoma Resolution of Intention 
• County of Sonoma Draft Ordinance 
• California Streets and Highways Code 36500: Parking and Business Improvement Area Law of 1989 
• FAQ

[Donna1157]

I recommend. you try to attend all the town halls. 

Second Town Hall: October 27th at 12:00 pm  

Register in advance for this meeting 

Third Town Hall: November 18th at 9:00 am  

Register in advance for this meeting 

Tonight's Zoom presentation started out all peachy keen... a real marketing effort to sell a bill of goods. 

I didn't really prep prior to the meeting and deep get into the weeds. Figured I'd take note during the meeting ...assumed they'd all be up front HA!

It was a presentation of "trust us, we'll market you too, really!" Never mind there will be no saying no.

Was this strategic on their part, I wonder? Especially as it is being rushed -railroaded?- on the heels of the new TOT/Business regs recently passed. 

As the night dragged on the die-hards, and "PROTESTORS" remained to seriously challenge the whole concept.

Of the participants-
God bless Nancy Brignole who is a Sr  Leader in the Tech world who is seriously stressing about losing her VRin the Sta Rosa hills and the added 2% may just do it according to her.

Also exceptionally wonderful were Linda Ross and Dwight Moore (they may have participated in the TOT meetings over the years) and one other whose name I didn't remember to capture. I recorded it on my iphone- have no clue how to share. 

I strongly recommend you attend the next meeting - I’m sure the Sonoma County Tourism team will be more on point and responsive with something more than marketing mumbo jumbo. I truly don’t think they were ready for those of who just finished years of advocating about TOT and Regs to now have to face BIA…when the hotels will not pick up the slack.

The meeting went nearly 1hr over. It wasn't til late the hidden issues finally came to light- PROTESTATIONS
Rules of saying "hell no we won't pay." To do so requires 50% of the businesses in your area to say no/ to protest... The problem with that is the hotels outnumber the STRowners. And they won't say no as it was THEIR IDEA to have STRs pick up the slack they endured due to fires and pandemics causing a downturn in their profits. 

PLUS- I bet the BOS, fresh out of their wins made on the new TOT regulations and business licensing  (for inland Sonoma County…stay tuned for us) probably feel they got fresh dollars for licensing and PM regs, let's push the sword in another 2% more.

See County of Sonoma Draft Ordinance
Found in doc, Page 4, 8-9: County of Sonoma Resolution of Intention

 The problem with finding 50% of the hotels to say never mind is… THEY were the ones that said let the STRs fund it… because if they don’t, THEY, who are making $350,000+ in receipts, would have to add 1-2% more to THEIR fees (that are not a tax) to compensate for added costs from last few years in downturn of tourism.

Business was down, due to fire and Virus…why not have STRs pick up the slack oh and Tourists visiting the STRs will now all be responsible, non-noise making, and keep their cars off the roads… for which this ordinance falls under.
Ordinance No. 5525- (Streets & Highways Code Section 36500, et seq., the “Act”).  pertaining to the creation of the Sonoma County Tourism Business Improvement Area, in accordance with the terms of the Parking and Business Improvement Area
Law of 1989 

Oh.. and they are changing the name... to Responsible Tourism Assessment (“RTA”).  to attract responsible tourists who will behave, be quiet and not take up all the parking spaces on the roads (in accordance with the terms of the Parking and Business Improvement Area Law of 1989)


From the proposed NEW ordinance...assuming there are no Protests from 50% of the hotel businesses:

(c) During the last few years, natural disasters have taken a heavy toll on the tourism industry in Sonoma County. The Tubbs Fire in 2017, Russian River floods and the Kincaid Fire in 2019, and the Corona virus in 2020, have changed travel plans for millions of potential visitors and consequently stressed local hospitality businesses. Moreover, evolving trends in tourism have also stressed resources within Sonoma County, highlighting the importance of attracting responsible visitors that will engage in sustainable tourism, respecting both the natural resources and local residents of Sonoma County The increased assessment proposed by this amendment will allow the Sonoma County Tourism Bureau to perform its evolving destination stewardship role and is hence referred to as the Responsible Tourism Assessment (“RTA”). 

(d) In recognition of the need to increase marketing efforts, the same hoteliers who spearheaded adoption of the original assessment have joined again to propose an amendment to the Ordinance designed to increase available funding. Specifically, this proposed amendment to the Ordinance will remove the $350,000.00 threshold for collection of the assessment.

I mentioned I was ok with the 2% IF the ROI was better than what I'm getting now. 
Currently for nothing:

• I have a listing with them that after multiple requests that still has not been updated (I loaded new photos, and new text on the back end, it has not been oked for publish still)
• Their website is NOT guest friendly for those seeking to book a VR.
• Their VR specific marketing is non-existent.
• Their last minute media hook-ups with IG/blogger influencers is not conducive to VRs who only have their one house that was booked last year. Yeah, sorry this weekend has been long gone and booked. While hotels have 100's of rooms at a drop of a hat.

What your 2% will buy you:

1. Special recognition on SonomaCounty.com for vacation rentals and bed & breakfast establishments. SCT will include a Vacation Rentals navigation on its Places to Stay section that encourages travelers to search through the properties in these sectors and will include content specific to these types of businesses.
   
   
2. Segment-specific content. SCT will work with owners/property management companies of short term rentals to create content that elevates understanding about short term rentals on its Place to Stay home page and in social media.  
   They hinted- said right out loud- this would be in collaboration with homes that market via Airbnb… no other OTAs were mentions nor any discussion on individuals who are listing site independent
   .
3. SCT will create a committee comprised of short-term rental owners/operators and others committed to this segment to help inform sales and marketing programs and work on public affairs (without policy or legislative issues) that helps educate stakeholders about this segment.
   
   
4. Develop a ” Cities & Neighborhoods” program [Can you see TSR-HOA OKing this?] that creates customized ongoing content and promotional offerings for all of Sonoma County’s municipalities for which all or a portion of the area participates in the BIA program, and the neighborhoods within the unincorporated areas, calling out the small businesses and unique brands of each. (While cities and towns currently have information on SonomaCounty.com, the pages are not robust, updated on a frequent basis and given the recognition they will receive with this new program.)
   
   
5. Ensure ongoing performance data and annual economic impact data are created to meet the needs of this industry segment and convey this information on a timely basis. (Right now they use Air DNA)
   
   
6. Curate at least one media [a small goal in deed!] press trip that focuses on small businesses, houses participants at a property within this segment and showcases the unique individually owned lodging properties and businesses in the County.
   How many of you can take a 1 night notice for a 1-2 night stay? Those have been the media press trip offers I’ve received from them so far…it’s not like I run a hotel!
   
   
7. Ensure any content produced and main copy of the website is available in English, German, French and Spanish helping to connect with international travelers.
   Lots of discussion why the focus on foreigners when their actual niche of guests were locals - SCT tried to convince them that foriegn market is for us...and they will sell it for you. They actually have a good program of bringing over Tourism Agencies from overseas- England, Australia, Germany and France primarily. I think it's in conjunction with "Visit California" state marketing. I tried like heck to get someone from their Tourism Abroad program to stay at our house...nope.... all were directed to the hotels...maybe next time I was told.
   
   
8. Continue to ensure this segment has a voice on the SCT Board of Directors and on its various program committees. 
   Will this voice include individual owners or only be opened to the larger PM Companies?
   
9. SCT will create, as part of its annual report, an accounting of the usage of these funds and the estimated return-on-investment for the dollars spent.

[Donna1157]

Attached and copied here-The letter sent to the Sonoma County Board of Supervisors from the Sonoma County Hospitality Association (membership is primarily hotels):

Dear Sonoma County Board of Supervisors:
The hospitality and tourism community in Sonoma County has experienced a
tumultuous few years. This industry, made up of mostly small locally owned and
operated entrepreneurial businesses, is today one of the driving economic
engines for Sonoma County. Our collective well-being now and in the
sustainable future hinges on our successful collaborative efforts at branding
Sonoma County as unique destination. A critical partner on the industry’s road
to recovery and for messaging our joint sustainable success in the future is
Sonoma County Tourism.

Sonoma County Hospitality Association (SCHA) is writing to our Board of
Supervisors, seeking your support of Sonoma County Tourism’s request to
remove the $350,000 annual revenue threshold from their Business
Improvement Area (BIA).

We feel this request is long overdue. When the BIA was originally developed,
the vacation rental and short-term rental industry was in its infancy. Today, the
vacation rental industry is flourishing in Sonoma County. These properties are
benefitting from the overall promotion of the County but are not participating in
paying into the BIA, and therefore, are also not able to fully participate in the
benefits that Sonoma County Tourism has to offer. As an assessment, this
charge can be passed along to the consumer and does not come directly out of
the profits for the owner. In addition, properties with revenues over $350,000
as well as those properties managed by professional management
organizations, and those properties working with some of the large nationwide
Online Travel Agencies, are already paying the assessment. The playing field
should be leveled so all lodging properties not only participate in, but benefit
from, Sonoma County Tourism marketing efforts.

The BIA is industry initiated – the lodging industry is assessing itself, for its own
success and for the success of the larger tourism ecosystem in Sonoma County.
To align with Sonoma County Tourism’s commitment to destination
stewardship, the assessment is called the Responsible Tourism Assessment, with
the aim of reaching locals and visitors who will not only enjoy the extraordinary
offerings of Sonoma County but do so while protecting and preserving the
area’s natural and cultural resources. Equally as important, it supports small
local entrepreneurial businesses which makeup the lion’s share of hospitality
industry in Sonoma County. Our small hosted and non-hosted rentals will
benefit and are welcome participants in the expansion of the BIA assessment.

p2

Through work with the SCT organization’s marketing agency, a strategic media
platform has been developed that does just that. These additional funds will
help find responsible travelers and further enhance our region’s focus on
sustainable tourism and supporting small businesses throughout Sonoma
County.

Additional funds collected by removing the $350,000 threshold, will create
additional marketing opportunities to nurture smaller lodging establishments,
such as hosted and non-hosted vacation rentals and B&B inns, in support of this
unique market segment in Sonoma County Tourism’s marketing efforts. More
overnight stays in our smaller lodging establishments benefits the whole
industry ,as overnight guests generally spend three times more dollars in local
businesses such as food and beverage, wine tasting, recreation, and arts.
Spending locally further supports, the conversation for local vitality and
sustainability and on how to best integrate stewardship messaging with the
travelers that stay in hosted and non-hosted vacation rentals when they visit
our community.

SCHA truly believes that continued development of the infrastructure and
marketing needed to better promote responsible tourism into the region will be
a tremendous way to build long-term economic success for all corners of our
vast County. These changes in the BIA provide an excellent way for us to realize
those opportunities.

Thank you for your consideration of this matter.

Warm regards,
The Sonoma County Hospitality Association Board of Directors

[Donna1157]

Sonoma County Tourism has suspended their effort to move forward with BIA.
THEY HAVE NOT CANCELED IT!

Dear Town Hall Attendees,

This email is to let you know that Sonoma County Tourism has revised its direction in regard to the change in the BIA.  The organization has determined it will pause the current initiative and work to gain a more collegial relationship with the vacation rental community before moving forward with any further revisions.  The attached letter will be distributed via both email and snail mail to all who received the first letter. 

The item is still on tomorrow’s Board of Supervisors agenda, although we believe it may be pulled for discussion and further action.  Public comment will still be accepted. Claudia Vecchio and I will be at the meeting to answer any questions or respond to public input as needed.

As you can see from the letter, there are actions the vacation rental community can do today to help ensure it has greater access to SCT’s marketing channels and information about programs and research available through e-newsletters.  You’ll also see a couple of initiatives we will undertake in the new year to help build a solid connection with your community. We look forward to continued dialogue between SCT and the vacation rental community.

Please let me know if you have any questions.  Thank you for your candid input.

Kelly