Team San Jose, which operates the city’s convention and cultural facilities, announced annual revenue grew to $19 million this year – $7 million more than projected.
Revenue grew 3 percent from the 2011 fiscal year, but Team San Jose still posted an operating loss of $3.4 million, which is less than 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, board chairman, Team San Jose. “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 metrics set by the City of San Jose to measure success. Revenue grew by a $1 million more than the previous fiscal year and exceeded estimates by $7 million. Team San Jose helped generate economic activity that exceeded expectations by more than 58 percent, generating $89.4 million in visitor spending. A 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.
“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,” said Bill Sherry, CEO, Team San Jose. “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 the current fiscal year, officials for Team San Jose and the City of San Jose projected a significant decline in revenue as a result of construction and renovation at the convention center. But delays in construction resulted in available space, and Team San Jose’s sales team booked several 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 ago.
“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.
Team San Jose is a partnership unifying the San Jose Convention and Visitors Bureau and manages the San Jose Convention Center along with several arts and entertainment venues, including the California Theatre, the Center for the Performing Arts, Montgomery Theater, Parkside Hall, San Jose Civic and South Hall.