Tourism marketing budget to be $1.876M for 2022/ 23 fiscal year

The Mendocino Lodging Business Improvement District Advisory Board (BID) approved their budget and annual report and is submitting it to the Board of Supervisors for a May 3 presentation and a May 17 adoption. The report provides details about the tourism industry in Mendocino and makes recommendations to staff for FY2022/2023. The fiscal year runs from July 1, 2022, to June 30, 2023.

The BID is an oversight board appointed by the County Board of Supervisors (BOS) to monitor the Mendocino County Tourism Commission (MCTC), also known as Visit Mendocino, activities and provide annual reports to the BOS. The appointees are all employees in the lodging industry.

In 2020, (the most recent data available) tourism spending in Mendocino County was $285 million, supporting 4590 jobs and generating $170 million in earnings. There was a 41.2% decrease in spending from 2019 to 2020 due to pandemic-related shutdowns. However, the tourism industry quickly returned in the latter half of 2020 and throughout 2021 after the shutdown ended as pandemic-related restrictions were peeled away.

Mendocino County reported a 52.6% increase in transit occupancy tax in FY 2020/2021, or 7.1 million in earnings. Data for the second half of 2021 will be released in September of 2022.

MCTC activities staffing has returned to pre-pandemic levels of four full-time and one part-time employee after being reduced to one and a half employees during the shutdown. According to Executive Director Travis Scott, all marketing activities have been brought in-house during the recent fiscal year.

Last year MCTC created a drought awareness program and provided the lodging industry with support materials to encourage water savings. They are currently ramping that program up for the current and upcoming season. The majority of marketing

The $1.876 million dollar budget for FY2022/ 2023 includes $1.68 million from BID fees, approximately $600 thousand in matching funds from the county general fund, and $168 thousand from the Visit Mendocino contingency fund. The contingency fund was established to provide funding for one year of baseline expenses due to an emergency.

dollars continue to be spent in the primary feeder markets of the Sacramento Region and Bay Area, where the bulk of Mendocino Visitors come from. MCTC is also working to bring back festivals that lagged during the height of the pandemic and is supporting the first Purple Uni Festival in June and a Harvest Festival in November.

While tourism grew substantially over the last year and a half, Scott reports that the increase was proportional to the two regions they track.

The coastal region draws about 65% of tourism, and the inland regions, including Anderson Valley, draw 35%.

The $1.876 million dollar budget for FY2022/2023 includes $1.68 million from BID fees, approximately $600 thousand in matching funds from the county general fund, and $168 thousand from the Visit Mendocino contingency fund. The contingency fund was established to provide funding for one year of baseline expenses due to an emergency. The hot tourism market caused it to balloon to close to $1 Million over the last year and a half. Contributions are currently curtailed, and the fund will be drawn down until it reaches about $450 thousand.

The BID has also requested the BOS alter the configuration of the BID board so that they can fill their roster with more atlarge members. The current rules require three board members to be from large properties. There are not enough large properties to supply three board members. Changing the rule would allow more small properties to participate and fill a board position vacant for over a year.

The current leadership of the BID includes Chair Marcus Magdaleno (Boonville Hotel), Vice Chair John Dixon (Glendeven Inn), and board members Jon Glidewell (Beachcomber Properties) and Cindi Wagner (Lords Land Retreat Center). The fivemember board has one vacancy. Since December, they have been meeting regularly to prepare the annual report, which is typically sent to the BOS in April and approved before the next fiscal year. Due to Coronavirus restrictions, the meetings are live-streamed on the Mendocino County YouTube page at www.youtube.com/mendocinocountyvideo.

For a copy of the final report that will be presented to the BOS, go to www.mendocinocounty. org/government/planningbuilding-services/meeting-agendas/business-improvement-district-advisory-board-bid