Up to $3M Projected to Support Visitor Outreach
Oakland, CA – On July 2, 2024, the Oakland City Council unanimously approved a change to the Tourism Improvement District (TID) hotel assessment to increase funding for marketing Oakland. Prior to the recent vote, $1.50 from each hotel room night was allocated towards marketing Oakland. Under the new agreement, Oakland hotels with fifty rooms or more within the TID will now charge a 2% fee on nightly rates. This change is expected to generate as much as $3M annually to support the promotion of the city as a leisure and convention tourism destination.
The tourism outreach is led by Visit Oakland, the official Destination Marketing Organization (DMO) for Oakland. Committed to driving visitors to Oakland, California by celebrating, elevating, and illuminating Oakland and all its vibrancy – Visit Oakland’s efforts have a direct economic impact on the city. In 2023, the total tourism economic impact was $817 million and visitors supported a total of $617 million in sales at businesses in Oakland. This sustained 5,556 jobs and generated $90 million in state and local tax revenues.
“This change came at an extremely important time for Oakland and we are grateful for the support received from our hotels and city officials” commented Peter Gamez, President and CEO for Visit Oakland. “While our results have been positive, we are still dealing with the impacts of the global pandemic. This increase will allow us to compete more aggressively in markets around the country to bring additional leisure and corporate business to our destination.”
The TID is comprised of 24 hotels based in Oakland. In order for a TID increase to be submitted to City Council for vote, 50% of the TID hotels must agree to the initiative. Oakland TID hotels showed outstanding support with more than 80% of the properties agreeing to the 2% assessment.
“Working with the Oakland hospitality community, stakeholders and city officials was a very collaborative process” stated Carson Lambeth, Vice President of Business Development for Civitas Advisors. “The Oakland hotels and City Council fully support the efforts of Visit Oakland and trust in the organization’s vision and abilities. The high percentage of hotel participation and the unanimous City Council vote are a true testament to confidence these partners have in Visit Oakland.”
The funds generated through the TID assessment are used for specific purposes related to driving visitation and hotel occupancy. A first step will be adding to the sales staff to increase market reach. Other key initiatives include partnering with a film coalition to bring more production and revenue generating opportunities to Oakland and expanding Oakland’s presence in the sports sector. The goal of the sports focus is to increase hotel stays during major sporting events that take place in the Bay Area. This includes the 2025 NBA All-Star Weekend and FIFA World Cup in 2026.
“The approved TID is an investment in our entire community” stated Dhruv Patel, President and COO of Ridgemeont Hospitality and Chairman of the Board for Visit Oakland and California Hotel & Lodging. “These dedicated funds will help Visit Oakland welcome new overnight visitors that will support our small businesses, restaurants and cultural attractions. Partnership and hard work went into approving the TID increase and our tourism community should be proud of what we have accomplished for our city.”
The new assessment will begin on August 2024. The initial term is 9 years and 11 months, subject to renewal. The tax will be paid by hotel guests based on confirmed room rate for each overnight stay.
About Visit Oakland
Visit Oakland is a non-profit organization marketing Oakland, California as a travel destination. Visit Oakland offers a wide variety of complimentary services and materials for travelers interested in visiting Oakland. For more information, go to VisitOakland.com. Follow @visitoakland on Instagram, Facebook and LinkedIn. #visitoakland
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