Visit Vallejo CEO Kirk Smith reported to the Vallejo Economic Development Commission on Sept. 10 that hotel occupancy in the city was up about 1% year over year for the second quarter and for the year-to-date period, while average daily room rate and revenue per available room were down. He said the tourism nonprofit generated just under $300,000 in assessments from the city’s Tourism Business Improvement District (BID) and is proposing a two-step BID modification to raise assessments by $0.50 per room night in January 2026 and another $0.50 in January 2027.

Smith said the BID increase — which still requires City Council action and a public hearing — would, on current occupancy, produce roughly $57,000 in incremental revenue for a half fiscal year and about $114,000 for a full year; over the two years as proposed, he estimated about $228,000 of additional revenue. The organization plans to devote the money primarily to an “always-on” marketing program to drive out‑of‑market visitation, expand digital outreach, develop a mobile app and other visitor services, and later consider staffing additions if revenue grows.

The request matters because Visit Vallejo relies heavily on BID assessments: Smith said about 75% of its operating revenue comes from the BID, and about two‑thirds of its current expenses are staffing. He added that the group currently spends roughly 11% of operating funds on marketing; at its high-water benchmark (2017–18) Visit Vallejo spent about 30% on marketing. Smith told the commission the BID modification is scheduled for a City Council presentation Oct. 14 and could proceed through hearings and readings before taking effect at the start of calendar-year 2026 if approved.

Commissioners asked how the proposed increase would affect smaller hotels and how Visit Vallejo is measuring return on marketing. Commissioner Mitchell noted the initial proposal had been $1 per room night and asked how smaller properties were being protected; Smith and commissioners said hoteliers themselves asked to stagger the increase (50¢ then 50¢) to avoid sudden competitive pressure. Smith said the BID assessment is passed through to guests, not paid from hotel operating budgets, but acknowledged smaller operators worry about perceived price disadvantages and asked Visit Vallejo to protect pricing competitiveness.

Commissioners also asked for more data tying Visit Vallejo marketing to lodging and economic results. Smith cited a recent two-week “September to Remember” advertising push in feeder markets (Reno, Fresno and parts of Northern California), which he said produced a 254% increase in website visits and a 350% increase in page views during the campaign’s early period; he said early indicators suggested attractions, restaurants and hotels were seeing gains but that more time and forecasting are required to measure sustained impact.

Smith described recent Visit Vallejo activities: expanding the site events calendar from a handful of postings to more than 120 events, a successful restaurant‑week “gamification” promotion, a quarter‑mile beautification cleanup that collected roughly 10,000 pounds of trash with 75 volunteers, new partnerships and sponsorships, and work to relocate and modernize a visitor center at the ferry terminal. He reviewed Visit Vallejo’s draft FY2025–26 budget, described sponsorship gains, and said the organization expects to exceed $400,000 in operating revenue this fiscal year if trends continue.

No commission action was taken on the BID modification; Smith said he will return with a Council staff report and public‑hearing schedule. The commission asked to receive follow-up data on how the proposed assessment would affect small hotels, occupancy and revenues, and on measurable outcomes of the marketing campaigns.