Team San Jose Grows Revenue to $19 Million in Challenging Economy
Amid convention center expansion and renovation, Team San Jose exceeds goals on revenue and strengthens reserve fund by an estimated $2.7 million
SAN JOSE, CA (August 28, 2012) – Team San Jose, the innovative operator of the city’s convention and cultural facilities, announced strong fiscal year-end results for a second year in a row.
Team San Jose grew revenue to $19 million, or $7 million above projections. Revenue grew 3 percent from the previous fiscal year. Team San Jose, which utilizes transient occupancy tax to support operations, boosts overall economic growth by attracting conventions, meetings and tourists, posted an operating loss of $3.4 million, improved from the $4.6 million budgeted deficit. The city’s tourism reserve fund, known as Fund 536, grew by an estimated $2.7 million.
“San Jose’s convention and visitor industry continues to pave the way in the industry, making it easy for our customers to hold events in our destination,” said Michael Mulcahy, Team San Jose’s new Board Chairman. “The Team San Jose Board of Directors is pleased with the continued strong progress made over the last two years, particularly during a still-challenging economic environment. These results demonstrate a strong customer focus and aggressive sales efforts by our team.’’
Team San Jose exceeded seven of nine performance measures set by the City of San Jose to measure success. Revenue grew by a million more than the previous fiscal year, and exceeded budget by $7million. Team San Jose helped generate economic activity that exceeded expectations by more than 58 percent, generating $89.4 million in visitor spending. Weak economy and funding challenges faced by local arts organizations, as well as renovation delays at various theater venues, contributed to lower than anticipated theater performance results.
“Team San Jose’s “one-stop” approach to handling planner’s event needs saves pnners time and money,” said Bill Sherry, Team San Jose’s CEO. “At a time when planners are trying to keep people meeting, it’s important to make their jobs easier. Team San Jose has been doing exactly that with its ability to offer a full menu of convention and visitor options. Customers consistently say they would rather work with an organization like Team San Jose than deal with other cities, where they must use a variety of entities to organize and execute a big meeting or convention.’’
Prior to fiscal 2011-2012, Team San Jose and its partner, the City of San Jose, projected a significant decline in revenue as a result of construction and renovation at the convention center. However, delays in construction resulted in available space, and Team San Jose’s sales team was able to successfully book a host of short-term events that boosted revenue sharply. Team San Jose’s customer service rating stayed strong for the year at 98 percent. Hotel room nights topped 239,848 for the fiscal year, up 10 percent from a year earlier.
“Strong results help support our local economy, generate jobs and drive tax revenue to the city, which helps pay for vital city services. We are proud of our performance and look forward to continued progress,” said Sherry.
Chuck Toeniskoetter, the local businessman who has been lauded for his oversight of Team San Jose, stepped down from his chairman’s role on June 30, 2012. Michael Mulcahy, a San Jose businessman, developer and hotel partner took over as chairman and will serve a two-year term starting July 1, 2012.
Team San Jose (TSJ)
Team San Jose, Inc. is an innovative partnership unifying the San Jose Convention and Visitors Bureau, hotels, arts, labor and venues to deliver an exceptional visitor experience and serve as the gateway to San Jose as a destination. Our company manages the San Jose Convention Center and Arts and Entertainment venues including the California Theatre, the Center for the Performing Arts, Montgomery Theater, Parkside Hall, San Jose Civic and South Hall. For more information about San Jose and Team San Jose, please visit the new www.sanjose.org.