This is worse than you may realize. The funds collected are used for funding applications approved by a committee of hotel managers, selected by the hotel lobbying association (Sacramento Hotel Association). You can read the past meeting minutes on Visit Sacramento site.
There are dozens of examples that prove the use of funds is to directly benefit the hotels that sit on this committee. I pasted a few that show funds used to market events hosted at specific hotels, support hotels to setup booths at trade conventions, transport hotel guests between over flow hotels. One shows they previously denied and/or reduced funding for events that benefit other hotels not represented in the Committee, such as Downtown Commons.
It’s not clear how an assessment collected by the city (government), but run by private business is legal and not considered taxation without representation. Anyone a lawyer here?
The most recent meetings brought up Airbnb, and it was stated that a few hosts said they didn’t mind paying this “assessment”. There is another committee on Oct 12. I strongly believe hosts should attend and ask detailed questions about excluding Airbnb unless the committee agrees to adopt new rules that cease use of funds that directly benefit any specific hotel.
“The funding, raised by the hospitality industry, is directed by the hospitality industry. The funds flow directly into sales and marketing activities that will be reviewed and monitored by a Tourism District Committee of industry peers - hotel managers appointed by the Sacramento Hotel Association.”
FY2019-20 Zone Funding Applications for Review or Approval
The following fund applications were presented:
1. Zone 1: IMEX America 2019 (Hyatt Regency and Sheraton Grand) – September 10-12, 2019
(Initial Request: $19,000)
Presenter(s): Lynda Sagar, Sheraton Grand
Presentation: Sagar shared that the funding request was for the Sheraton Grand and Hyatt Regency to attend IMEX America and exhibit with Visit Sacramento. The event was last month and went very well. All parties had high-quality appointments and received many RFPs.
MOTION: Nikki Carlson motioned to approve the funding request as submitted; David Huber seconded. [Vote: Unanimous]
3. Zone 2: CAPPA/ The Network Conference (Hilton Arden West) – October 2-4, 2019 (Initial Request: $2,500)
Presenter(s): Ginger Levert, Hilton Arden West
Presentation: Levert shared that this funding request was for a repeat program’s delegate transportation from the overflow hotel, Hilton Arden West, to the headquarter hotel, DoubleTree by Hilton. The transportation funding assists with securing the business year-over- year.
Committee Review: Pollard shared that the event had a large impact and was successful. MOTION: Barry Miller motioned to approve the funding request as submitted; Nikki Carlson
seconded. [Vote: Unanimous]
Zone 1: RCMA Emerge 2020 (Holiday Inn Downtown Arena) – February 4-6, 2020 (Initial Request: $4,000)
Presenter(s): Karla Weymouth, Holiday Inn Downtown Arena, Yvonne Magneheim, Hilton Arden West, Jonatha Monetti, DoubleTree by Hilton
Presentation: All three hotels presented together as all were requesting funding to attend RCMA Emerge with Visit Sacramento. Weymouth stated that she attended last year and received multiple leads for the Holiday Inn Downtown Arena. Magneheim shared that this event has pre-set appointments and that the Hilton has seen actualized bookings after previous attendance at this annual conference. Monetti concluded by sharing this event not only allows sales managers to build relationships with new clients but cultivate and grow relationships with existing clients.
Committee Review: Reyes noted that the RCMA planners attended IMEX and shared that they are looking to come back to Sacramento for their annual convention
13. Zone 1: Capitol Beer Fest 2020 (Runnin’ for Rhett) – March 7, 2020 (Initial Request: $15,000) Presenter(s): Randy Seevers, Runnin’ for Rhett
Presentation: Seevers shared the event will be celebrating its 10th anniversary this year. The event had sold out for the past three years and has a maximum capacity of 7,500 attendees. Seevers continued that the 2018 funding application was approved for $10,000 and that funding was used for out-of-market advertising, which drove 1,000 tickets sold to attendees outside of a 60-mile radius of the event. In 2019 the funding application was denied, and they saw a significant decrease in out-of-market sales as they were unable to advertise out of market.
Seevers added that the application this year is for $15,000 with $11,000 budgeted for out-of- market advertising and $4,000 for entertainment. Seevers also informed the Committee that the organization is working with Downtown Commons to keep business after the event in the downtown corridor.
Committee Review: Carlson stated that she understood why the 2019 application was denied. She continued that due to this year’s partnership with Downtown Commons she believes that the STMD Committee should approve $5,000 to help drive attendance. Carlson continued that this event may not drive room nights, but if it is driving attendees to surrounding restaurants, which is important as well.
MOTION: Nikki Carlson motioned to approve the funding request at $5,000; Royce Pollard seconded. [Vote: Unanimous]
