Page 435 - FY 2020-21 Blue Book Volume II

LOS ANGELES TOURISM & CONVENTION BOARD

BASIS FOR THE PROPOSED BUDGET

The 2020-21 Proposed Budget for the Los Angeles Tourism & Convention Board (LATCB) relates to current year
funding as follows:

Amount % Change

2019-20 Adopted Budget $ 24,507,000

2020-21 Proposed Budget $ 18,466,000

Change from 2019-20 Budget $ (6,041,000) (24.65%)

The LATCB budget consists of multiple funding sources, including funds from the City, the Los Angeles Tourism
Marketing District, Los Angeles World Airports, and private sources. The amounts reflected above represent the
City's contribution to the overall LATCB budget, which is equivalent to one fourteenth of the Transient Occupancy
Tax (TOT) less costs for City administrative services. The TOT is a 14 percent tax on hotel and short-term rental
guests. The City has contracted with the LATCB to market Los Angeles as a convention, meeting and leisure travel
destination.

City Appropriation and Trust Fund Retention

The Los Angeles Convention and Visitors Bureau Trust Fund (Trust Fund), from which LATCB is paid, receives an
amount equivalent to one fourteenth of the TOT. The LATCB is paid 95 percent of this amount in accordance with
the Agreement between the City and LATCB. The remaining five percent is retained in the Trust Fund in the event
of a shortfall in TOT collections. Nonetheless, the LATCB prepares its annual budget based on 100 percent of the
TOT allocation. In the event the TOT actual receipts are higher than budgeted, LATCB is paid the difference the
following fiscal year.

Projections in this report are based on the February 2020 visitation forecast provided by Tourism Economics, the
industry’s leading source for such data. As the COVID-19 crisis continues to evolve, LATCB will continue to adjust
its sales and marketing strategies, as well as its goals and budget projections, based on updated data as it becomes
available.

EXPENDITURES

Actual Estimated Proposed
Expenditures Expenditures Budget
PROGRAM 2018-19 2019-20 2020-21

Convention and Meeting Sales and Services $ 8,725,000 $ 7,741,000 $ 7,022,000

Domestic and International Marketing, Global
Public Relations, and Media 9,835,000 8,082,000 7,331,000

Business Operations (Finance, Information
Technology, Human Resources, and Visitor

Information Centers) 5,408,000 4,534,000 4,113,000

Total Expenditures $ 23,968,000 $ 20,357,000 $ 18,466,000

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