City reaches deal with TMD over tourism funding - CBS News 8 - San Diego, CA News Station - KFMB Channel 8

City reaches deal with TMD over tourism funding

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SAN DIEGO (CBS 8) - Interim Mayor Todd Gloria announced Tuesday the city has reached an agreement with the Tourism Marketing District to release funds to promote San Diego as vacation destination.

The deal goes before the City Council Thursday. If approved, it would free up $6 million for promotion and marketing campaigns.

"We have perfect weather, we have great beaches, we have Balboa Park and much, much more. That said, if you're in Ohio, San Diego may not be on your radar screen for your next vacation, and that's where marketing comes in," Gloria said.

The TMD operates using a 2 percent charge on hotel room rates that is separate from the hotel room tax.

Floria says the city and the TMD have also agreed to withhold funds to create a reserve of $30 million within four years. That money will be released when litigation over how funds are collected concludes.

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