San Francisco Peninsula TMD Conversion Ushers in a New Era of Growth and Innovation

Civitas is proud to congratulate John Hutar and the remarkable team at San Francisco Peninsula on the conversion of the previous San Mateo Tourism Business Improvement District (TBID) into the San Francisco Peninsula Tourism Marketing District (TMD). This strategic shift, transitioning from the ’89 law to a ’94 district, marks a significant milestone in the destination’s efforts that reflect its commitment to modernization and growth in the tourism sector. 

With the conversion, the TMD will introduce an innovative and simplified assessment methodology. The new structure will include:

  • A 1.5% room revenue assessment for hotels with 5,000 sq. ft. or more of dedicated meeting space.
  • A 0.75% assessment for all other hotels.

These funds will infuse the destination with sustainable funding that will allow them to competitively market the region. The first full year TMD budget anticipates an impressive increase in funding to $10.4M, a significant rise from the current $2.7M.

This enhanced funding will support the continued success of the San Francisco Peninsula brand, which launched in 2022, by strategically investing these funds into crucial initiatives such as:

  • Bidding for and hosting large-scale events that bring visitors to our hotels.
  • Targeted marketing and advertising efforts
  • Facilitating educational programs for hospitality staff, focusing on service excellence and safety.

John Hutar, President and CEO at The San Francisco Peninsula, says, “Engaging Civitas Advisors to formulate our new Tourism Marketing District was a brilliant decision by our Board of Directors. Augmenting our revenue stream by 2X in the early years and 4X in the latter years will surely be a game changer for our destination!”

Beginning collection on January 1, 2024, this transformation marks a pivotal moment in its ongoing efforts to position the San Francisco Peninsula as a premier destination for tourists, meeting planners, and event organizers as the area continues to recover. Join us in congratulating the team at San Francisco Peninsula and its leadership on this important win for the destination.

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