Tourism Marketing District Effective until December 2025

Fanfare Fountains at San Pedro Gateway
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As TMD Board Chairman Cano announced, the Tourism Marketing District has been renewed by L.A.’s hotels and the City of Los Angeles. Hotels with 50 rooms or more located in the City of Los Angeles will continue to benefit from marketing and sales efforts to drive business demand. During the petition drive, the parameters of the TMD were circulated to all hotels, but as a reminder, they are listed below.

Boundaries:

The LATMD includes all lodging businesses with fifty (50) rooms or more located within the boundaries of the City of Los Angeles.  

Services:

The LATMD is designed to provide specific benefits directly to payors by increasing room night sales. The LATMD provides marketing and sales promotions to increase tourism and increase awareness of the assessed businesses as destinations for tourists, meetings and events, and to increase gross room rental revenue for the specific benefit of assessed lodging businesses with 50 or more rooms. These services are supplemental to those provided by the City of Los Angeles pursuant to existing contracts with non-profit corporations. 

Budget:

The total LATMD annual budget for each full year of operation is anticipated to be approximately $20,000,000. The initial “year” of operation will be a partial year consisting of nine months, for which the anticipated budget is $15,000,000. This budget is expected to fluctuate as room sales and the assessment rate do.  

Assessment:

The initial annual assessment rate is one and one half percent (1.5%) of gross short-term (stays less than 31 days) room rental revenue on lodging businesses with 50 or more rooms. The assessment rate may increase to a maximum of three percent (3%) of gross room rental revenue within the 9 year and 9 month term; the increase in any year shall not exceed one-half of one percent (0.5%) of gross room rental revenue. The assessment rate may also be decreased, but shall not drop below one and one half percent (1.5%) of gross room rental revenue.

Duration:

The renewed LATMD will have a nine year nine month life, beginning April 1, 2016 through December 31, 2025.

Management:

A nonprofit corporation serves as the LATMD’s Owners’ Association, under contract with the City. The Owners’ Association is charged with managing funds and implementing programs, in accordance with the Plan, and must provide annual reports to the City Council. It is governed by a twelve-member Board of Director’s comprised of majority hoteliers and a few representatives with an interest in tourism.

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Tourism Marketing District