The Los Angeles Tourism Marketing District (TMD) was established by the hospitality community to create a sustainable funding source to drive demand to TMD hotels through a comprehensive integrated marketing and sales strategy targeting key domestic and international visitor markets. In 2011, the Los Angeles City Council approved a 1.5% assessment on room revenue for all hotels of 50 rooms or more within the City of Los Angeles for an initial five year term. The assessment is listed on the hotel room folio as it can be charged to the guest.
Due to the hotel community’s strong support, the TMD was renewed in 2016 for an additional term extending until December 2025.
The TMD has successfully demonstrated its effectiveness by enabling the Los Angeles hotel community to aggressively compete for its share of the lucrative global visitor market while leveraging the City’s investment in tourism as an economic driver in Los Angeles.
What is a Tourism Marketing District (TMD)?
A Tourism Marketing District (TMD) is similar to a Business Improvement District (BID) where businesses pay an additional fee in order to fund improvements within the district’s boundaries. In Los Angeles, the TMD is managed by the Los Angeles Tourism Marketing District Corporation that has contracted with the Los Angeles Tourism & Convention Board to administer the program and market Los Angeles as a premiere destination for leisure, business and group meetings travel.
Who charges the assessment, and how much is it?
Hotels of 50 rooms or more within the City of Los Angeles are charged a 1.5% assessment on room revenue. The hotels are allowed to pass the charge along to guests. Among hotels with 50 rooms or more – the threshold for inclusion in the TMD – nearly 80% voted in favor of the program. There are approximately 170 hotels in the City of Los Angeles with 50 rooms or more.
Why did Los Angeles form a TMD?
Tourism is the region’s largest industry, employing more than 488,100 jobs in the leisure and hospitality industry. A group of interested hotels believe that TMD-funded sales and marketing will help draw more visitors to the area and most of them will stay in hotels. Currently, over 45.6 million people visit the region each year, contributing $20.6 billion to the local economy.
Do other cities have a TMD?
TMDs are an increasingly popular method to expand marketing budgets, having been adopted by more than 95 cities in California alone in recent years.
For more information about the TMD, contact [email protected] or 213.236.2360.