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LACC Cover4.pdf412/8/1411:49 AMEMBRACING THEITEM NO. 10CHALLENGE2013-2014 ANNUAL REPORTDEPARTMENT OF CONVENTION AND TOURISM DEVELOPMENT CITY OF LOS ANGELES
Mission StatementThe mission of the Los Angeles Department of Convention and Tourism Development is to attractand host conventions at a world class facility with world class service and to drive economicdevelopment and job creation by marketing the city’s unique cultural, sports, entertainment, andleisure attractions that make visiting the City of Angels an unparalleled experience.Table of ContentsMission Statement. Inside Front CoverIntroduction. 1Creating Middle Class Jobs. 2Increasing Economic Prosperity. 4Restructuring Governance. 6Privatizing the Los Angeles Convention Center. 7Expanding and Futurizing the LACC. 8Developing Hotel Inventory.10Transit-Oriented Tourism.12Maximizing International Travel & Ground Transportation.14Expanding Entertainment and Sports Venues.16Cultivating Cultural Tourism.18Concentrating on Core Initiatives.20FY 2013-14 Convention Center Highlights and Financials.22Award-Winning & Record-Breaking in FY 2013-14.24Credits. Inside Back CoverIntroductionWe all know Los Angelesis a world-class vacationand tourist destination, andFiscal Year 2013-14 confirmedthat in new and excitingways. The Department ofConvention and TourismDevelopment’s governanceand management transitionwas completed in June,settingthestagetoaccomplish what I consider my primary goals: to rebuildour Convention Center, revitalize our convention industryand continue the growth in South Park that began with thecompletion of the STAPLES Center in 1999.As President of the newLos Angeles Departmentof Convention and TourismDevelopment (CTD) Boardof Commissioners, I wouldlike to share with youmy enthusiasm for theoverall advancement of ourtourism industry and thecomprehensive changes tothe Los Angeles ConventionCenter we have witnessed this past year. I credit ourprogress in these areas to the collaboration andsynergy between the Board, L.A. Tourism, AEG and theCTD Department.A recent study by PricewaterhouseCoopers indicatesthe meetings and events industry generates 263billion nationally in booking fees and tourism dollars,demonstrating that an expansion of our convention centeris an obvious economic development priority. But whenit comes to large convention bookings, we lag far behindother U.S. cities because our convention center is not up topar and is generally outdated.However, our work is far from done as the LACC ispreparing for its first expansion in more than 20 years! Thefuturized Convention Center will strengthen our standingin the convention and meetings market, thus bringing newvisitors, stimulating spending throughout LA and creatingjobs where they are needed most.Another significant priority has been our ongoing effortsto attract an NFL team to Los Angeles. As we approachthe NFL’s decision-making deadline next spring, we aredeveloping a “Plan B” for moving forward with a renovatedconvention center.At the end of the day, getting a football team to LosAngeles is a means to an end. The bold changes stemmingfrom the new direction we began last year will ensure weachieve that end, with or without football.Sincerely,Part of our mission is to educate people, both here andoutside of Los Angeles, about the unique assets wehave in LA. Not only is Los Angeles the home of theentertainment industry, great weather, and beautifulbeaches, but we also have over 100 museums, manyof them world-renowned. Our restaurant scene isflourishing, our tech sector is a center for innovation andwe have a remarkably diverse population.We are also navigating a bigger picture of tourismdevelopment for the region. Promoting the constructionof more hotel rooms, supporting transit development andfully leveraging the city’s great resources are just a few ofthe challenges that we are embracing. We look forwardto continuing to work on behalf of all Angelenos in theupcoming year.Sincerely,Mayor Eric GarcettiCity of Los AngelesPHOTO ABOVE: The Board of Convention and Tourism Development Commissioners from left to right: Otto Padron, Nicole Duckett Fricke, Jon F. Vein (President), Gillian Zucker,and Ray Bidenost (Vice President).LACC 2013-14 PageRevisions 9.indd 2-3Jon F. Vein, PresidentBoard of Los Angeles Conventionand Tourism Development112/8/14 12:11 PM
Creating Middle Class JobsThe Leisure and Hospitality sector supports 1 in every10 jobs in LA, for a total of 453,600 jobs in the tourismindustry. We take pride in the jobs that tourism directlyand indirectly supports.LA COUNTYEMPLOYMENTBYBYINDUSTRYINDUSTRYCOUNTY EMPLOYMENTASASOFOFJUNEJUNE 2014201410.1%PHOTO ABOVE: . Culinary students receive instruction at the Western Foodservice and Hospitality ExpoLeisure and Hospitality is considered a “super sector” forthe reporting of job statistics at the local, state, and nationallevels. It remains the 5th largest industry sector in LA County.In Fiscal Year 2013-14, the Leisure and Hospitality sector added8,200 jobs in food services, accommodations, entertainmentarts, and recreation.LA COUNTYEMPLOYMENTBY INDUSTRYLA COUNTYEMPLOYMENTBY INDUSTRYTOTALSAS2014OF JUNE 2014SECTORSECTORTOTALS ASOF JUNETRADE, TRANSPORTATION, & 390,000733,300PROFESSIONAL & BUSINESS SERVICESFY 07-08FY 08-09FY 09-10389,050FY 10-11FY 11-12FY 12-13FY 13-14JUNE UNEMPLOYMENT RATE COMPARISONJUNE EMPLOYEMENTRATE COMPARISONNOT SEASONALLY ADJUSTEDNOT SEASONALLY ADJUSTED500,000611,100LEISURE & HOSPITALITYIn FY 2013-14, LA County’s unemployment ratedecreased at a similar rate as California and theUSA, dropping from a peak of 12.5% in 2011 to8.2% in 2014.453,600352,800MANUFACTURINGFINANCIAL ACTIVITIES213,200205,900INFORMATION149,500OTHER SERVICESCONSTRUCTION126,500MINING AND 0400,000Reported by the Employment Development Department10000050000013.0%UNEMPLOYEMENT RATE558,600GOVERNMENTLACC 2013-14 PageRevisions 9.indd 4-5500,000LEISURE& HOSPITALITYSECTORLEISURE& HOSPITALITYSECTORJOB GROWTHRECOVERYJOB GROWTHRECOVERY789,300EDUCATIONAL & HEALTH SERVICES2Recovering from the RecessionTourism and travel is an industry thatweatherseconomicrecessionsbetterthan most. While LA County’s total nonfarmwork force is still below pre-recession levels,the Leisure and Hospitality sector felt lessof a dip in jobs, recuperated its losses byFY 2011-12 and still continues to steadilyincrease in job growth.AVERAGE NUMBER OF JOBS PER FISCAL YEARLeisure and Hospitality Jobs in Los AngelesJob growth is always a strong indicator of an improvingeconomy, and in the LA region, tourism continues to fuelthat growth. The Leisure and Hospitality industry in LA hashelped put more workers back into much-needed entry leveljobs that not only help to support families of residents of LA,but also provide a variety of opportunities for advancementtoward rewarding careers.PHOTO ABOVE: The 2014 Los Angeles Tourism Market Outlook ForumLEISURE & N-10JUN-11JUN-12JUN-13JUN-14Reported by the Employment Development Department312/8/14 12:11 PM
The Leisure and Hospitality sector supports 1 in every LQDU KP .# HQT C VQVCN QH LQDU KP VJG VQWTKUO KPFWUVT[ 9G VCMG RTKFG KP VJG LQDU VJCV VQWTKUO FKTGEVN[ and indirectly supports.LA COUNTY EMPLOYMENT BY INDUSTRYAS OF JUNE 201410.1%PHOTO ABOVE: The 2014 Los Angeles Tourism Market Outlook ForumLEISURE & HOSPITALITY P (; .# %QWPV[oU WPGORNQ[OGPV TCVG FGETGCUGF CV C UKOKNCT TCVG CU %CNKHQTPKC CPF VJG 75# FTQRRKPI HTQO C RGCM QH KP VQ KP AVERAGE NUMBER OF JOBS PER FISCAL YEARYGCVJGTU GEQPQOKE TGEGUUKQPU DGVVGT VJCP OQUV 9JKNG .# %QWPV[oU VQVCN PQPHCTO YQTM HQTEG KU UVKNN DGNQY RTG TGEGUUKQP NGXGNU VJG .GKUWTG CPF *QURKVCNKV[ UGEVQT HGNV NGUU QH C FKR KP LQDU TGEWRGTCVGF KVU NQUUGU D[ FY 2011-12 and still continues to steadilyKPETGCUG KP LQD ITQYVJ 01,000394,542403,558400,000382,725390,000380,000FY 07-08FY 08-09FY 09-10389,050FY 10-11FY 11-12FY 12-13FY 13-14JUNE EMPLOYEMENT RATE COMPARISONNOT SEASONALLY ADJUSTED500,00050000013.0%12.0%UNEMPLOYEMENT RATERecovering from the Recession6QWTKUO CPF VTCXGN KU CP KPFWUVT[ VJCV LEISURE & HOSPITALITY SECTORJOB GROWTH 1JUN-12JUN-13JUN-14Reported by the Employment Development Department312/8/14 12:11 PM
Increasing Economic ProsperityOf the top U.S. destinations, LA ranks 6th in total visitationand 4th in overnight visitors. This is significant becauseovernight visitors spend 95.3% of all visitor spending, whichtranslates into the creation of new jobs. For every additional175 overnight visitors to LA, one new local job is created.In FY 2013-14, there were 13.8 million day visitors and28.7 million overnight visitors. While leisure travel is easilyresponsible for the majority of overnight visitation to LAat 77%, the convention market is the area with the mostpotential for growth at 5%. Therefore, the CTD Departmentis committed to the initiatives in this report and to buildingan expanded and improved convention center to attract ahigher volume of citywide conventions.OVERNIGHT VISITORS: TRIP PURPOSEOVERNIGHT VISITORS: TRIP PURPOSE2013CALENDAR YEARYEAR2013CALENDAR5%PHOTO ABOVE: Ernest Wooden Jr., President and CEO of the Los Angeles Tourism& Convention Board (L.A. Tourism), Mayor Eric Garcetti, City of Los AngelesPHOTO ABOVE: Mike Gallagher, President and CEO of the Entertainment Software Association, at the ribbon cutting ceremony for E3 Expo 2014 with Mayor Eric Garcetti and Ernest Wooden Jr.18%77%CONVENTIONLEISUREReported by Tourism Economics; L.A. TourismThe Transient Occupancy Tax (TOT) is revenue collected fromhotel guests for the City’s general fund. The more tourists whovisit LA and stay in hotels, the more money generated. TOTrevenue increased by 10% for FY 2013-14, resulting in 184.4million for the City of YFISCALYEARLOS ANGELES BY FISCAL YEARLOS ANGELES NET TRANSIENT OCCUPANCY TAXLOS ANGELESNET TRANSIENT OCCUPANCY TAX500,00050000019050,000,000184.4180170MILLIONS OF INESSFY08-09FYFYFYFYFYFYFYFYFYFYFY09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20ACTUALReported by Tourism Economics; L.A. 30120118.5110100FY09-10FY10-11FY11-12Reported by City of Los Angeles Office of Finance4LACC 2013-14 PageRevisions 9.indd 6-7FY12-13FY13-14Economic Impact of Citywide Conventionand Center Events at the LACCThe common goal of any convention center is tobring convention business to the City for the purposeof attracting out of town visitors that will generatespending and hotel occupancy, which in turn benefitsthe City’s general fund to support roads, fire, police,parks and other City services. The events bookedthrough L.A. Tourism are responsible for the generationof significant hotel room occupancy.As a specific illustration of the Los Angeles ConventionCenter’s (LACC) ability to function as an economicengine, just one of the larger conventions, E3 Expo 2014generated 56.4 million in direct and indirect spending.Total conventions and the number of hotel room nightswere down in FY 2013-14. This may be due to our clients’uncertainty regarding a timeline and committment tothe expansion and futurization of the center, or it maybe due to the cyclical nature of conventions whichrotate their location from year to year. While there wasa dip in the number of Citywide events at the Center,the out-of-town attendees at those events increased by38% over last year, generating tremendous economicbenefit for the City of LA.LA CITYWIDECONVENTIONS,GENERAL GENERALROOM NIGHTS,LA CITYWIDECONVENTIONS,ANDDELEGATEATTENDANCEROOM NIGHTS, AND DELEGATE ATTENDANCE(BOXED FIGURES REPRESENT NUMBER OF L.A. TOURISM BOOKED EVENTS)(BOXED FIGURES REPRESENT NUMBERS OF L.A. TOURISM BOOKED EVENTS)ROOM NIGHTS AND DELEGATE ATTENDEESVisitation to Los AngelesLA continues to draw record-breaking numbers of visitorsfrom the U.S. and around the globe. The 42.2 million visitorsthat Los Angeles welcomed in 2013 spent 18.4 billiondirectly in LA’s economy, a 5.5% increase over 2012. Thatdirect spending worked its way through businesses, salaries,and households, resulting in a total economic impact of atleast 28.3 billion to LA County, 4.3% more than 2012. Stateand local government received 18.4 billion in tax revenues.Los Angeles Tourism & Convention Board (L.A. Tourism)reported 42.5 million visitors to LA by the end of June 2014,slightly higher than projected for FY 2013-14. LA is on targetto reach the goal of 50 million visitors by ,00050,000132223242325FY 09-10FY 10-11FY 11-12FY 12-13FY 13-14FY 14-15 PROOM ,42023 CitywideConventions& CenterEvents157,450Room NightsFull-TimeEquivelantJobs 12.1M290,418Attendees 252.8MLocal BusinessSalesLocal TaxRevenueReported by Tourism Economics512/8/14 12:11 PM
PHOTO ABOVE: Mike Gallagher, President and CEO of the Entertainment Software Association, at the ribbon cutting ceremony for E3 Expo 2014 with Mayor Eric Garcetti and Ernest Wooden Jr.#U C URGEKƂE KNNWUVTCVKQP QH VJG .QU #PIGNGU %QPXGPVKQP %GPVGToU .#%% CDKNKV[ VQ HWPEVKQP CU CP GEQPQOKE GPIKPG LWUV QPG QH VJG NCTIGT EQPXGPVKQPU ' 'ZRQ IGPGTCVGF OKNNKQP KP FKTGEV CPF KPFKTGEV URGPFKPI 6QVCN EQPXGPVKQPU CPF VJG PWODGT QH JQVGN TQQO PKIJVU YGTG FQYP KP (; 6JKU OC[ DG FWG VQ QWT ENKGPVUo WPEGTVCKPV[ TGICTFKPI C VKOGNKPG CPF EQOOKVVOGPV VQ VJG GZRCPUKQP CPF HWVWTK\CVKQP QH VJG EGPVGT QT KV OC[ DG FWG VQ VJG E[ENKECN PCVWTG QH EQPXGPVKQPU YJKEJ TQVCVG VJGKT NQECVKQP HTQO [GCT VQ [GCT 9JKNG VJGTG YCU C FKR KP VJG PWODGT QH %KV[YKFG GXGPVU CV VJG %GPVGT VJG QWV QH VQYP CVVGPFGGU CV VJQUG GXGPVU KPETGCUGF D[ QXGT NCUV [GCT IGPGTCVKPI VTGOGPFQWU GEQPQOKE DGPGƂV HQT VJG %KV[ QH .# LA CITYWIDE CONVENTIONS, GENERALROOM NIGHTS, AND DELEGATE ATTENDANCE(BOXED FIGURES REPRESENT NUMBERS OF L.A. TOURISM BOOKED EVENTS)ROOM NIGHTS AND DELEGATE ATTENDEESEconomic Impact of Citywide Conventionand Center Events at the LACC6JG EQOOQP IQCN QH CP[ EQPXGPVKQP EGPVGT KU VQ DTKPI EQPXGPVKQP DWUKPGUU VQ VJG %KV[ HQT VJG RWTRQUG QH CVVTCEVKPI QWV QH VQYP XKUKVQTU VJCV YKNN IGPGTCVG URGPFKPI CPF JQVGN QEEWRCPE[ YJKEJ KP VWTP DGPGƂVU VJG %KV[oU IGPGTCN HWPF VQ UWRRQTV TQCFU ƂTG RQNKEG RCTMU CPF QVJGT %KV[ UGTXKEGU 6JG GXGPVU DQQMGF VJTQWIJ . # 6QWTKUO CTG TGURQPUKDNG HQT VJG IGPGTCVKQP QH UKIPKƂECPV JQVGN TQQO QEEWRCPE[ 0,000132223242325FY 09-10FY 10-11FY 11-12FY 12-13FY 13-14FY 14-15 PROOM ,42023 CitywideConventions& CenterEvents157,450Room NightsFull-TimeEquivelantJobs 12.1M290,418Attendees 252.8MLocal BusinessSalesLocal TaxRevenueReported by Tourism Economics 12/8/14 12:11 PM
Restructuring GovernancePrivatizing the Los AngelesConvention CenterPHOTO ABOVE: From left to right: Brad Gessner, Vice President of Convention Centers at AEG Facilities; Bud Ovrom, Executive Director of the Department of Convention and Tourism Development;Ernest Wooden Jr., President and CEO of the Los Angeles Tourism & Convention BoardPHOTO ABOVE: E3 Expo 2014 at the Los Angeles Convention CenterA New DirectionThe Los Angeles Convention Center Department officiallybecame the new Department of Convention and TourismDevelopment (CTD) on June 9, 2014, when the ordinanceapproved by City Council and signed by the Mayor came intoeffect. The Board of Commissioners now has an increasedauthoritative role in the oversight and administration of thecontractual performance of the private management ofthe LACC and Los Angeles Tourism & Convention Board(L.A. Tourism). This change in vision is designed to driveeconomic development and job creation by increasing thecompetitiveness of Los Angeles as a convention and NHOTELSThe CTD Department is comprised of the Executive Director,two Assistant General Managers and support staff. The CTDDepartment administers both the AEG and L.A. Tourismcontracts, develops strategies to expand the tourism andconvention industries in Los Angeles, and facilitates capitalimprovements to the Convention Center.MAYORERIC GARCETTICTDBOARD OFCOMISSIONERS6LACC 2013-14 PageRevisions 9.indd 8-9and reducing overtime. As guest services is a top priority tothe LACC, AEG’s Encore Guest Service Training providedemployees with the values and principles to enhanceguests’ experiences and exceed expectations. Landscapingand other much-needed aesthetic enhancements have alsocontributed to an upgraded visitor experience.Using a strategy comprised of four pillars, the CTDDepartment is not just building a building, but changinga culture: (1) leve raging the new governance structure tobetter market the City’s Leisure and Hospitality sector; (2)privatizing Convention Center operations; (3) modernizingand expanding the Convention Center to capture additionalmarket share; and (4) promoting hotel construction withinwalking distance of the Convention Center.CTDEXECUTIVEDIRECTORBUD OVROMLACCFINANCINGAUTHORITYStaff collaboration has been critical in devising newstrategies to strength
arts, and recreation. LA COUNTY EMPLOYMENT BY INDUSTRY AS OF JUNE 2014 LEISURE & HOSPITALITY. 10.1%. Creating Middle Class Jobs. PHOTO ABOVE: . Culinary students receive instruction at the Western Foodservice and Hospitality Expo. 0. 100000. 200,000. 300000. 400,000. 500000. . LACC_2013-14
