Page 393 - FY 2021-22 Blue Book Volume 2

LOS ANGELES TOURISM & CONVENTION BOARD

BASIS FOR THE PROPOSED BUDGET

The 2021-22 Proposed Budget for the Los Angeles Tourism & Convention Board (LATCB) relates to current year
funding as follows:

Amount % Change

2020-21 Adopted Budget $ 18,466,000

2021-22 Proposed Budget $ 13,275,000

Change from 2020-21 Budget $ (5,191,000) (28.11%)

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 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. 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, 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 would be paid the difference the
following fiscal year.

The following pages contain projections based on the February 2021 visitation forecast provided by Tourism
Economics, the industry’s leading source for such data. As the COVID-19 pandemic 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.

EXPENDITURES

Actual Estimated Proposed
Expenditures Expenditures Budget
PROGRAM 2019-20 2020-21 2021-22

Convention and Meeting Sales and Services $ 7,226,000 $ 2,811,000 $ 4,249,000

Domestic and International Marketing, Global
Public Relations, and Media 6,800,000 2,933,000 4,383,000

Business Operations (Finance, Information
Technology, Human Resources, and Visitor
Information Centers) 4,861,000 1,646,000 3,948,000

Allocation to TOT Reserve Fund, for funding
future programming - - 695,000

Total Expenditures $ 18,887,000 $ 7,390,000 $ 13,275,000

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