Skift Take
Anna Marie Presutti, a hotel industry veteran and 23-year San Francisco resident, became president and CEO of the San Francisco Travel Association (SF Travel) at the end of September. The first female CEO in San Francisco Travel’s 115-year history, Presutti had been serving as interim president and CEO after the sudden departure of Scott Beck in May.
She takes the helm at a crucial time as the competition for meetings business is fierce. In addition, the city is dealing with perception issues.
“San Francisco is a three-legged stool of convention, international, and business travel,” said Presutti. “All three of those legs are a little wobbly right now.”
She is optimistic. “We are getting some really good traction. For example, the DECA conference just signed a two-year contract. We’ve had a tough road, but San Francisco is back.”
The city’s convention business currently accounts for 650,000 annual room nights. Presutti’s goal is to get that to 750,000. “When we do that, I will feel like we are back,” she said.
According to SF Travel, San Francisco tourism generated $9.3 billion in visitor spending and nearly $610 million in tax revenue last year. Although it was the third straight year of growth, the city’s pandemic recovery has been one of the slowest in the country.
Things are improving. Next year, the city expects 23.9 million visitors to spend around $10 billion.
In addition, the Moscone Center has 29 events booked for next year, representing over 590,000 hotel room night bookings, a 44% increase compared to this year.
Securing Additional Revenue
The San Francisco Tourism Improvement District Management Corporation (TIDMC) board of directors approved a 1% increase in the city’s Tourism Improvement District (TID) assessment. This additional tax on accommodations will cover hotels and short-term rentals within a specific zone. It will go into effect on November 1 and will generate $14.6 million in additional annual revenue for the organization.
Presutti said these funds will initially be used to build the association’s cash reserves and for marketing.
“We will also be embarking on a PR campaign to help us get out of this gin loop narrative,” said Presutti.
The additional funds will also bring back a few staff members. Pre-pandemic, SF Travel had 104 staff members. It now has just 52.
This additional revenue will help the city prepare to host high-profile events, including the 2025 NBA All-Star Game, Super Bowl LX, and the FIFA World Cup in 2026.
Presutti also plans to attract industry gatherings like the annual meetings of Meeting Professionals International (MPI) or Professional Convention Management (PCMA).
The city hosted PCMA Convening Leaders in January 2020. “We have to host a conference like this again. We need to put the city at the forefront,” said Presutti.
Major Events Make a Difference
According to the Bay Area Host Committee (BAHC), the NBA All-Star Game, Super Bowl, and World Cup will have an estimated total economic impact of $1.4 billion. Boston Consulting Group reports that these three events are expected to attract approximately 500,000 visitors to the region.
In September, Salesforce CEO Marc Benioff signed an agreement to bring the Dreamforce conference back to San Francisco for the next three years. This was welcome news, especially considering the threat of pulling the conference from the city last year. Benioff was concerned about homelessness around the Moscone Center, where the conference is based.
“Dreamforce requires the entire city to participate. It has become part of the fabric of San Francisco,” said Presutti.
Street conditions in the city are improving, said Presutti. On July 31, city officials launched a crackdown on homeless encampments after a U.S. Supreme Court ruling that gave cities more enforcement powers.