Visit California Tourism Assessment Program

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Visit California Board of Directors Board Chair JAMES BERMINGHAM CEO, Virgin Hotels Vice Chair of Marketing GENE ZANGER Partner, Casa de Fruta Parkway, LLC Chief Fiscal Officer DAN GORDON CEO, Gordon-Biersch Elected Board Members BY INDUSTRY CATEGORY Accommodations JIM BURBA President, Burba Hotel Network PETER CLARKE Vice President of Company Managed Hotels - Operations West, InterContinental Hotels Group MICHAEL DUNNE Area Vice President of Operations, California, Hilton Worldwide ROBERT GLEASON President & CEO, Evans Hotels BRIAN KING Global Officer- Digital, Distribution, Revenue Management & Global Sales, Marriott Business Services WILLIAM LOUGHRAN COO, Evolution Hospitality JORDAN MEISNER Senior Vice President - Field Operations, Hyatt Hotels & Resorts SIMA PATEL CEO, Ridgemont Hospitality BOBBIE SINGH-ALLEN Executive Vice President & COO, California Lodging Industry Association PETE SONNTAG Senior Vice President, Mountain Division Vail Resorts PAUL TORMEY Regional Vice President & General Manager, California Region, AccorHotels Attractions & Recreation JOE D’ALESSANDRO President & CEO, San Francisco Travel KAREN IRWIN President & COO, Universal Studios & Executive Vice President, Universal Parks & Resorts JOHN KELLIHER Founder, Grapeline Wine Tours TOM KLEIN Owner, Rodney Strong Wine Estates TERRY MACRAE CEO, Hornblower Cruises & Events KEN POTROCK President, Disneyland Resorts KURT STOCKS General Manager, LEGOLAND SCOTT WHITE President & CEO, Greater Palm Springs Convention & Visitors Bureau Restaurants & Retail KEVIN FAT COO, Fat Family Restaurant Group Transportation & Travel Services GARY BUFFO President, Pure Luxury Transportation DEE DEE MYERS Director, Governor’s Office of Business and Economic Development BENJAMIN WEBSTER Office Managing Shareholder, Littler Mendelson P.C. Passenger Rental Cars JASON CLARKE General Manager/Vice President, Enterprise Rent-A-Car JEFF EISENBARTH Senior Vice President - Western Region Avis Budget Group, Inc. DAN HARVEY Division Vice President, The Hertz Company Office of Tourism CAROLINE BETETA Visit California President & CEO Director of Tourism, Governor’s Office of Business and Economic Development Who are Visit California’s board members? Board members are travel and tourism industry leaders representing various regions and industry categories. Board members are elected by their peers or appointed to serve on behalf of the governor. (As of May 2021) About Visit California? The California Travel and Tourism Commission, doing business as Visit California, is a 501(c)6 nonprofit corporation that markets California as a desirable tourism destination. Visit California works in close coordination with California’s Office of Tourism (functioning under the Governor’s Office of Business and Economic Development, GO-Biz) — while Visit California conducts marketing programs that drive visitation, the Office of Tourism oversees the assessment program that helps to fund these initiatives. Mission Visit California is a nonprofit organization with a mission to develop and maintain marketing programs — in partnership with the state’s travel industry — that keep California top-of-mind as a premier travel destination. Vision Visit California will be the recognized source for statewide marketing planning and implementation, and information and support to California’s vast travel and tourism industry, thereby maintaining California’s position as one of the world’s preeminent travel and tourism destinations. Referendum Every six years, assessed businesses vote on whether to continue the assessment that funds these programs. In 2019, a record number of assessed businesses voted, and the referendum passed with a record 95% approval rating. FY20/21 Tourism Industry Investment Visit California has a proven track record of spending money wisely. 88% of the budget goes directly to marketing efforts, while operations account for only 12% of expenses. The investment of each segment is leveraged by the collective contribution of all other segments in order to benefit the entire tourism industry. Accommodations (53%) Rental Cars (33%) Retail (5%) Restaurants (4%) Attractions (3%) Travel Services (2%) State Funding (0.3%) Tourism Assessment Program A Quick Reference for California’s Travel and Tourism Businesses May 2021

Transcript of Visit California Tourism Assessment Program

Visit California Board of Directors

Board ChairJAMES BERMINGHAMCEO, Virgin Hotels

Vice Chair of MarketingGENE ZANGERPartner, Casa de Fruta Parkway, LLC

Chief Fiscal OfficerDAN GORDONCEO, Gordon-Biersch

Elected Board MembersBY INDUSTRY CATEGORY

Accommodations

JIM BURBAPresident, Burba Hotel Network

PETER CLARKEVice President of Company Managed Hotels - Operations West, InterContinental Hotels Group

MICHAEL DUNNEArea Vice President of Operations, California, Hilton Worldwide

ROBERT GLEASONPresident & CEO, Evans Hotels

BRIAN KINGGlobal Officer- Digital, Distribution, Revenue Management & Global Sales, Marriott Business Services

WILLIAM LOUGHRANCOO, Evolution Hospitality

JORDAN MEISNERSenior Vice President - Field Operations, Hyatt Hotels & Resorts

SIMA PATELCEO, Ridgemont Hospitality

BOBBIE SINGH-ALLENExecutive Vice President & COO, California Lodging Industry Association

PETE SONNTAGSenior Vice President, Mountain Division Vail Resorts

PAUL TORMEYRegional Vice President & General Manager, California Region, AccorHotels

Attractions & Recreation

JOE D’ALESSANDROPresident & CEO, San Francisco Travel

KAREN IRWINPresident & COO, Universal Studios & Executive Vice President, Universal Parks & Resorts

JOHN KELLIHERFounder, Grapeline Wine Tours

TOM KLEINOwner, Rodney Strong Wine Estates

TERRY MACRAECEO, Hornblower Cruises & Events

KEN POTROCKPresident, Disneyland Resorts

KURT STOCKSGeneral Manager, LEGOLAND

SCOTT WHITEPresident & CEO, Greater Palm Springs Convention & Visitors Bureau

Restaurants & Retail

KEVIN FATCOO, Fat Family Restaurant Group

Transportation & Travel Services

GARY BUFFOPresident, Pure Luxury Transportation

DEE DEE MYERSDirector, Governor’s Office of Business and Economic Development

BENJAMIN WEBSTEROffice Managing Shareholder, Littler Mendelson P.C.

Passenger Rental Cars

JASON CLARKEGeneral Manager/Vice President, Enterprise Rent-A-Car

JEFF EISENBARTHSenior Vice President - Western Region Avis Budget Group, Inc.

DAN HARVEYDivision Vice President, The Hertz Company

Office of Tourism

CAROLINE BETETAVisit California President & CEO Director of Tourism, Governor’s Office of Business and Economic Development

Who are Visit California’s board members? Board members are travel and tourism industry leaders representing various regions and industry categories. Board members are elected by their peers or appointed to serve on behalf of the governor. (As of May 2021)

About Visit California?The California Travel and Tourism Commission, doing business as Visit California, is a 501(c)6 nonprofit corporation that markets California as a desirable tourism destination. Visit California works in close coordination with California’s Office of Tourism (functioning under the Governor’s Office of Business and Economic Development, GO-Biz) — while Visit California conducts marketing programs that drive visitation, the Office of Tourism oversees the assessment program that helps to fund these initiatives.

MissionVisit California is a nonprofit organization with a mission to develop and maintain marketing programs — in partnership with the state’s travel industry — that keep California top-of-mind as a premier travel destination.

VisionVisit California will be the recognized source for statewide marketing planning and implementation, and information and support to California’s vast travel and tourism industry, thereby maintaining California’s position as one of the world’s preeminent travel and tourism destinations.

ReferendumEvery six years, assessed businesses vote on whether to continue the assessment that funds these programs. In 2019, a record number of assessed businesses voted, and the referendum passed with a record 95% approval rating.

FY20/21 Tourism Industry InvestmentVisit California has a proven track record of spending money wisely. 88% of the budget goes directly to marketing efforts, while operations account for only 12% of expenses.

The investment of each segment is leveraged by the collective contribution of all other segments in order to benefit the entire tourism industry.

Accommodations (53%)

Rental Cars (33%)

Retail (5%)

Restaurants (4%)

Attractions (3%)

Travel Services (2%)

State Funding (0.3%)

Tourism Assessment Program A Quick Reference for California’s Travel and Tourism Businesses

May 2021

How does my business benefit from the assessment?Visit California does what the industry cannot do for itself: effectively promote California as a premiere travel destination across the U.S. and globally. The industry’s commitment to a statewide tourism marketing program allows California tourism to remain competitive and recover from crisis more quickly.

With support from the Visit California marketing program, California’s tourism industry achieved a decade-long track record of growth and became one of the largest tourism markets worldwide, reaching a record $144.9 billion visitor spending in 2019.

Where can I learn more about program benefits? Visit industry.VisitCalifornia.com for partner programs, free industry research, industry newsletters and detailed white papers about the Visit California marketing program.

California Direct Travel SpendingWith help from Visit California marketing, California was the first U.S. state to have more than $100 billion in travel-related spending — more than entire countries. Following a decade of uninterrupted growth, the program is now significantly shortening the time until the industry recovers from the pandemic to the record travel spending seen in 2019.

Frequently Asked QuestionsIs this a state taxation program?No, the assessment is not a state tax. It is an industry self-assessment authorized by state law. The state does not have access to any assessment funds, and decisions regarding expenditures come directly from the travel and tourism industry through Visit California’s Board of Directors.

Is this related to my local tourism or business improvement district (TBID) fee? The assessment functions similarly to a TBID but is wholly separate from any city or county assessment or tax you may owe. Local TBIDs are similar to the Office of Tourism assessment in that they are typically enacted through a partnership between government and private business and overseen by a destination management organization (DMO), which funds activities that encourage industry growth and sustainability.

Though these fees perform a similar function, Visit California closely coordinates marketing activities with the state’s local DMOs to ensure state-level marketing is promoting California travel in markets that are out of reach for smaller destinations and businesses.

Why did I receive the tourism assessment form?A business receiving the Tourism Assessment Form has been identified as a potentially assessable business falling into one of the travel and tourism industry categories as identified in the California Tourism Marketing Act, Government Code 13995.

Why weren’t other travel and tourism businesses in my area assessed? The Office of Tourism does not assess every business annually and the timing of a business’s assessment will vary depending on the start and end months of its fiscal year.

Am I assessable if most of my receipts are from business travelers?Yes, travel and tourism revenue is defined as revenue from persons travelling at least 50 miles from home or those who have an overnight stay regardless of the distance or purpose of the travel.

I own and operate my business at several locations. Does each location need a separate form?Businesses with multiple locations can greatly streamline the process by completing a single online filing for all locations through the Office of Tourism website.

Can I pass on assessment fees to customers?Yes, the California Tourism Marketing Act allows for some or all of the Tourism Assessment Fee to be passed on to the consumer. Choosing to pass the assessment on is an individual business decision, as is how the collection of the assessment fee is implemented and whether or not it is disclosed to the consumer. Any assessment collected from the consumer must be remitted to the Office of Tourism, even if the collection is greater than the fee due.

My business owes a fee but is unable to pay at this time. Please contact the Office of Tourism to discuss payment plan options.

If my business did not earn significant revenue in a given fiscal year, does it still owe an assessment fee? The Tourism Marketing Act specifies an assessment approach that will “assess the least amount per business, in the least intrusive manner, spread across the greatest practical number of tourism industry segments.”

Accordingly, businesses that earned less than $1 million revenue overall in a fiscal year do not owe an assessment fee — thought must still file an assessment form with the Office of Tourism. Further, the assessment is prorated and is paid only as a percentage on revenue derived from tourism. If revenue from travel and tourism declined in the current tax year, the assessment owed will also decline.

My business is exempt. Do I still need to file a form?Yes, each year that your business is assessed you must file a Tourism Assessment Form. The Office of Tourism may not be able to determine that your business is exempt without the information provided on the form.

How do I calculate my assessment? The Office of Tourism provides a Percentage of Travel & Tourism Estimation Tool that calculates an assessment fee based on your location and business type. Businesses may also consult their own customer data to determine this percentage. Factors such as proximity to freeways or major attractions typically influence tourism revenue.

Here are a few additional guidelines that can help a business report an accurate assessment:

• Travel and tourism revenue is defined as business from a customer originating at least 50 miles from a business within the attractions and recreation, transportation and travel services, or restaurant and retail industry categories; or an overnight stay for a business within the accommodations category.

• A percentage of travel and tourism calculation does not affect the amount owed when the assessment fee is passed directly to customers. Businesses adopting this practice must remit the full amount collected to the Office of Tourism.

• Accommodations revenue involving an overnight stay is considered tourism. However, revenue from stays of 31 continues days or longer is not assessable.

• Accommodations can separately calculate the assessment owed for revenue derived from on-site restaurants and businesses.

• Rental car businesses remit payment on a monthly basis. For information on the process and fee calculation for rental cars, please contact the Office of Tourism.

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California Office of Tourism Assessment Program555 Capital Mall, Suite 465

Sacramento, CA 95814

(916) [email protected]

tourism.ca.gov