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10. Resolution 5522 - Budget Resolution - Tourism BIDREPORT TO: Mayor Fisher and City Council Members FROM: SUBJECT: MEETING DATE: Amy Robertson, Finance Director Jane Howington, City Manager FY2012 Tourism BID Budget August 15, 2011 BACKGROUND: The annual appropriations and the work plan are presented for Council consideration. The budget requested is $ 3 3 7, 000. The Tourism BID is a component unit of the City of Kalispell. The TBID has its own board appointed by the City Council. The City Council approves their budget. The City does not maintain a fund on our books to track their revenue or expenses. Collections for hotel assessments are passed through to the Chamber. RECOMMENDATION: Adoption of Resolution. FISCAL EFFECTS: $ 3 3 7,000. Amy H. Robertson Finance Director Report compiled: Aug 4, 2011 Attachment: TBID work plan Jane Howington Howington City Manager A RESOLUTION SETTING THE ANNUAL APPROPRIATION AND ADOPTING THE WORK PLAN FOR THE TOURISM BUSINESS IMPROVEMENT DISTRICT OF THE CITY OF KALISPELL, MONTANA, AS SET FORTH IN THE 2011-2012 BUDGET ADOPTED BY THE CITY COUNCILV SECTION I. That the annual appropriations for the Tourism Business Improvement District of the City of Kalispell, Montana are hereby fixed as follows: TOURISM BUSINESS IMPROVEMENT DISTRICT $337,000 SECTION 11. The Tourism BID Board of Directors is hereby authorized to transfer any part of an unencumbered balance of an appropriation to a purpose or object for which the appropriation for the current year is insufficient or to transfer between items appropriated within the fund. SECTION 111. The work plan and budget of the Tourism Business Improvement District, attached hereto as Exhibit "A" and fully incorporated herein by this reference, is hereby approved and adopted for the fiscal year 2011-2012. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS 15TH DAY OF AUGUST, 2011. Tarnmi Fisher Mayor ATTEST: Theresa White City Clerk sONVENTION AND ,r►- Z. VISITOR DEPOT PARK,15 r IJ July 1, 2011—June 30, 2012 The Kalispell CVB is dedicated to enhancing the economic vitality of our community by promoting Kalispell as a year- round leisure travel and meeting and convention destination by efficiently marketing our attributes and amenities while encouraging continued respect for our outstanding natural environment and quality of life. The KCVB marketing plan identifies a mix of advertising, sales and service programs to reach our identified target markets through an efficient allocation of bed tax and TBID revenues. Kalispell's brand aligns with the Montana Brand Platform, offering a cohesive voice when marketing our state: • More spectacular unspoiled nature than anywhere else in the lower 48. o Kalispell is located in the center of the Flathead Valley and surrounded by Montana's iconic natural wonders of Glacier National Park and Flathead Lake. • Vibrant and charming small towns that serve as gateways to our natural wonders. o Kalispell offers a balance of city and outdoor adventure with its historic downtown, museums, shopping, dining, community and cultural events. • Breathtaking experiences by day and relaxing hospitality at night. o Kalispell's proximity to area attractions offers non-stop discovery in every direction and a variety of national brand and boutique hotels at the end of the day. Strengths Kalispell is: In the middle of it all — surrounded by the area's natural wonders of Glacier National Park, Flathead Lake and a variety of natural resources and activities A genuine and welcoming real Montana community supported by local color, events, and residents Access to culture and entertainment offering museums, arts, community and regional events Variety of options and price ranges in lodging, shopping, and dining including national brand hotels and chain stores 0 A charming downtown with historic architecture and museums -- the place to learn about the history of the Flathead Valley and Glacier Park The place for larger meeting and convention space and event facilities and more guest rooms than other locals in the Valley The regional trade center for retail, health care, business and education A cooperation of numerous associations and organizations all with the common goal of improving our economy and creating a vibrant community • A travel destination for southern Alberta and eastern British Columbia, Canada • Accessed by Glacier Parts Intl Airport and Amtrak's Empire Builder Challenges Perception that Kalispell is a place to pass through on the way to somewhere else - a supply station, not a destination Seasonality of Kalispell tourism is heavily weighted to the summer months due to weather and Glacier National Parts, but also the number of events currently held in July and August Kalispell Convention & Visitor Bureau Marketing Plan 201 .-2012 Pg. 1 • Lack of events during the shoulder seasons • Ability to handle large tournaments or conventions in one location • Need for ground transportation options to ski areas, Glacier National Park, the airport and Amtrak • Glacier National Park road construction closures and late opening in the spring • Transportation Costs o Air service availability & pricing o Gas prices Unpredictability of Weather/Climate o Glacier National Park: emergency road repairs & melting glaciers o Local forest fires and other natural disasters in the United States impacting our visitor's ability and willingness to travel o variable snag levels year over year impacting raft season & ski season Recovery of U.S. Economy Primary Market ----- Leisure Travel a. Increase awareness of Kalispell as a travel destination b. Grog inquiries and increase visitations during shoulder seasons and winter months c. Create incentives to increase the number of visits and length of stay d. Provide effective tourism resources, services and training Primary Market -Groups and Meetings a. Generate qualified meeting and convention leads b. Recruit meetings, conventions & sports tournaments Secondary Market - Events a. Secure a long-term calendar of events during shoulder and winter seasons The KCVB marketing plan supports the following strategic plan objectives: Goal 1: Increase four -season tourism revenues statewide through effective marketing and promotions, focusing on high -value, low -impact visitors. 1.1 Implement highly targeted consumer advertising/promotion campaigns 1.1.a Expand partnerships with tourism businesses/attractions as co-op partners 1..1.b Continue winter marketing, promoting Montana as a superb winter destination 1.1.c Attend consumer travel shows targeting high value, love impact visitors 1.1.d Continue marketing to international travelers ..1.e Enhance tracking/reporting and Rol from state, regional, and CVB advertising 1.2 Promote Montana to target groups/events, emphasizing off-peak season activities 1.2.a Amplify targeted marketing to attract groups, meetings, and conferences 1.2.b Work with local sports groups to attract sport events in off-peak season 1.2.d Target travel media to increase visibility of MT as leisure travel destination 1.2.e Continue to target tour operators to bring tours/packaged vacations to MT 1.3 Collaborate with tourism marketing partners to plan/implement priority marketing efforts 1.3.a Most an annual marketing plan meeting to coordinate the marketing planning process 1.3.b Implement the new Montana tourism brand 1.3.c Conduct educational tourism workshops, presentations, and webinars 1.3.d Create cooperative marketing campaigns between agriculture and tourism Kalispell Convention & visitor Bureau Marketing Plan 2011-2012 Pg. 2 1.4 Improve Montana's Visitor Information System to extend visitor stays and spending 1.4.a Create a database inventory of Visitor Information System elements statewide 1.4.b Establish criteria for "officially -designated" visitor information sites and services, and foster more collaboration between agency and private visitor services 1.4.c Provide advanced training for all VICs, including regional familiarization tours 1.4.d.Use technology to enhance Montana visitor information and marketing efforts 1.4.e.Expand displays of Montana destinations and products at State rest areas, airports, train stations and visitor centers Goal 2: Attain public policy and citizen support for sustainable tourism and recreation. 2.1 Build awareness about new Montana Tourism Charter, Geotourism, & tourism benefits 2.2 Give effective presentations to policy makers about Montana tourism issues/benefits Goal 3: Address management and access issues for sustainable recreation on private, state, and federal lands. 3.1 Educate visitors, suppliers, residents about ethics and responsibilities on public/private lands 3.2 Coordinate statewide tourism marketing efforts to ensure consistency with land management Goal 4: Enhance and preserve Montana"s culture and history (historic sites, museums, art, music, etc.). 4.1 Promote existing historic/cultural assets for the enjoyment of residents and visitors 4.1.a Use historic/cultural attractions as venues for conferences, events, and seminars 4.1.d Revitalize Montana"s historic downtowns as vibrant destinations for travelers 4.1.e Plan and promote commemorations of historic events in Montana Goal 5: Support appropriate tourism business growth, including new tourism products and services for target customer markets. 5.1 Cultivate opportunities to leverage private/public funds to create tourism products 5.1.a Create vacation packages/itineraries for off-peak season niche markets 5.1.b Expand winter tourism products/activities (spas, arts/culture, tribal events, etc.) 5.1..c Encourage use of Made/Grown-in-MT products by restaurants, markets, retailers, etc. 5.2 Provide information about technical/financial assistance available to tourism businesses 5.2.a Distribute assistance information via tourism meetings, web sites, newsletters, etc. Goal 6: Address tourism and recreation professional development, workforce availability, training, and affordable housing issues. 6.1 Enhance professional development opportunities/requirements for tourism organizations 6.1.a Encourage all MT CVBs to join DMAI or WACVB trade associations, adopt standards Goal 7: Improve Montana's transportation system for both residents and visitors. 7.1 Increase air service capacity to and from Montana cities. Goal 9: Increase funding to maintain sustainable tourism and recreation. 9.1 Seek increases in state funding for targeted tourism marketing/programs/facilities 9.2 Easter opportunities to pool public and private marketing dollars 9.3 Enhance funding for region and CVB marketing efforts Goal 10: Build an effective "team" t❑ implement the Strategic Plan, and report results. 10.1 Recognize Travel Montana as 'team captain' to communicate/coordinate regularly with partners 10.2 Create public/private/tribal partnerships for cooperative project implementation 10.3 Implement Strategic Plan discussion/reporting to align activities with goals and actions 10.3.c Submit updates on Strategic Plan implementation for Annual Report to TAC, etc. 10.4 Streamline reporting process of marketing plans/expenditures to TAC/TM by regions & CVBs Kalispell Convention & Visitor Bureau Marketing Plan 2011-2012 Pg. 3 10.5 Obtain strategic research to inform tourism marketing, development, and policy decisions 10.5.a Continue to conduct research about resident/nonresident travelers in Montana 10.5.c Continue regular monitoring of Montanans' opinions about tourism and recreation 10.5.d Disseminate tourism research reports to partners statewide MEASURABLE OBJECTIVES Primary Market — Leisure Travel a. Create a Kalispell opt -in subscriber base of 1,000 individuals from key markets b. Implement DiscoverKalispell.com and grow unique visitors month over month c. Generate publicity placement in target markets d. Enhance visitor resources through staffing of VIC, promotion of valley -wide calendar of events and improved wayfinding and information signage Primary Market -- Groups, Meetings,. Tournaments a. Generate 100 qualified meeting planner leads b. Generate 6,700 room night bookings through groups, meetings and tournaments Secondary Market -- Events a. Identify 20 events to be brought to Kalispell, make 6 presentations i L.S. Travel predicts that domestic leisure travel will increase during 2011 as compared to 2010 and be above peak 2007 levels. Consumer confidence is highest it's been in 3 years but still not to a "healthy„ level. Traveler sentiment related to perceived "affordability of travel" has improved over 2010 but it is feared to be short-lived due to rising gas prices and airfares. Traveler sentiment related to perceived "money available for travel" shows an increase year over year and is at its highest point since February Zoos. Traveler sentiment index shoves "interest in travel" and "time for travel" are up slightly. Not surprisingly the financial factor most likely to influence future leisure travel is the price of gasoline and air travel. `favel is still viewed as a right although trips may be closer to home and frugality and value continue to reign. U.S. Travel Association/David 5heatsley Through ITRR, MARS Stout and the Kalispell VIC we know that visitors interested in Kalispell and our region primarily come from: Alberta, WA,, CA, British Columbia, TIC, OR, FL, CO, AZ, and IL. Based on travel predictions and probability of increased fuel prices, the KCVB will narrow that focus to the neighboring Canadian provinces and shorter drive, Amtrak and direct fly markets. Additionally we'll leverage MTOT and Glacier Country's marketing to target visitors already interested in a Montana vacation enticing them to select Kalispell as the destination. Target Geographic Markets: a. Leisure travel: Southern Alberta and Southeastern B.C. Canada, Eastern Washington and Seattle -Puget Sound area, Idaho, Oregon and Montana. b. Group: Based on data from local area lodging partners and business travel patterns, regional groups and meetings target markets will be reflective of leisure travel. Target Demographic Markets: a. Leisure travel: i. Individuals or couples ages 35+ and families that seek a memorable experience that offers a balance of city amenities and outdoor adventure. First time visitor or repeat visitor visiting friends and family. ii. Geotravelers -- leverage Montana Office of Tourism's focus to attract this high -value, low impact visitor that appreciates local culture, heritage and landmarks. Kalispell Convention & visitor Bureau Marketing Plan 2011-2012 Pg. 4 b. Group: Associations or corporate groups of 300 or less who travel to destination, resort communities for their meetings or retreats, and regional sports tournaments. During 2010-2011 we completed initiatives to lay the foundation for Kalispell's tourism marketing. This included the creation of the Kalispell TBID and CVB, a strategic planning session with 25 key community stakeholders, selection of a creative agency, discovery of the Kalispell Brand, production of a visitor guide, remodel of the Kalispell VIC, launch of a website and numerous public relation efforts positioning Kalispell as a destination marketing organization. Through a combination of public and private funds the marketing strategies in 2011-2012 will build upon that foundation to further the awareness of Kalispell as a travel destination to our target markets, provide effective training and resources to the local community to create brand advocates and improve the visitor experience, and continue the cooperative efforts with other local agencies and organizations to grog Kalispell's vitality. The key strategies and tactics include: a. web Site: Following the initial launch of DiscoverKalispell.com in June, 2011 the KCVB will continue to enhance and refine the website to create an exceptional planning tool for visitors. This will include inclusion of a Kalispell area video, valley -wide calendar of events, itinerary shopping cart and mobile site. b. Advertising and social Media.- To maximize the efficiency of KCVB's marketing budget our media strategy will focus on increasing visitations between October and May through media that builds word of mouth awareness for Kalispell through highly trackable media. Primary media will be online marketing through Trip Advisor, Google Grants, banner ads, and Facebook and other cross promotions. we'll work towards increasing compatibility of our marketing and travel tools with mobile devices and the trend of flexible and last minute travel planning. we will participate in applicable print and broadcast opportunities in the identified target markets for both the leisure travel and group segments. The KCVB is planning strong participation in cooperative marketing opportunities in both online and print with MTOT, Glacier Country and other CVB's. c. Direct Marketing: To support our efforts of direct marketing in leisure and group there will be a strong emphasis on growing our database. As we build the database we'll also begin to segment to enable us to send subject -specific communications. Methods used to increase the KCVB database include trade shows ;both as the KCVB and through cooperative efforts with MTOT and Glacier Country), increasing opt -in subscribers through online and social media advertising, and the purchase of leads from MTOT and Glacier Country. Through a consistent and strategically planned schedule of direct communications we will use e-marketing to complement our social media efforts and promote events and packages and increase group sales. d. Public Relations/Publicity: The KCVB will invest in publicity efforts to position Kalispell as a travel destination. Media coverage and endorsement of Kalispell will continue to drive discovery of our destination to an audience that we could not afford to reach with traditional advertising. This will be achieved through efforts such as group and leisure fams, press releases, travel writer recruitment and press taps. e. Tourism resources and education: The KCVB seeks to create brand ambassadors and enrich the visitor experience through Super Host and other hospitality training. The KCVB will leverage off the recent expansion and remodel of the Kalispell VIC to create an improved welcome center experience through the staffing of a full time travel counselor, enhanced visitor resources offered and wayfinding and visitor information signage. The KCVB will continue to work cooperatively with other local CVB's and tourism Kalispell Convention & Visitor Bureau Marketing Plan 2011-2012 Pg. 5 related organizations to educate the area on the value of tourism and Geotourism to our local economy and cooperative methods of increasing out of area visitation, particularly from the Canadian market. Marketing plan goals will be supported by the following strategies: Goals Marketing Strategies TBI D Bed Tax LEISURE TRAVEL Increase awareness of Kalispell as a travel destination website maintenance/enhancement x Produce Kalispell promotional video x x Visitor guide - production & printing, creation of digital guide x Visitor guide distribution x Grow the shoulder season advertising campaign through media that provides trackable Rol (media creative, production and placement) E-newsletters, e-blasts x x Social media x Print, radio or broadcast advertising x Online advertising (banner ads, SEO/SEN, Trip Advisor, Google Grants) x x Advertise in Glacier Country travel guide x Print and online Coop programs with mTOT & Glacier Country x Public Relations - host travel writers, fam trip, press releases to submit to media and bloggers in target markets. x x Increase database of qualified Lead development — e-newsletter subscriptions through e-marketing and leads social media and purchase of MTOT and Glacier Country leads. x Attend consumer travel shows within identified target markets including coop with NITOT & Glacier Country. x x Create incentives to increase Develop lodging/activity packages to promote during shoulder seasons in number of visits and length of all media. x Event development - incentives and sponsorships x stay Identify events that could be held in Kalispell, facilitate conceptualization and coordination by local groups and provide underwriting funds. x Provide tourism resources,. Staff year-round Visitor Information Center with full time travel counselor services and training and seasonal staff to cover weekend and holiday hours. x Stock Visitor Information Center at Glacier Park International Airport x Improve welcome and wayfinding signage in Kalispell X Create brand ambassadors with local businesses through informational sessions and Kalispell branded materials. Host hospitality training for front- line employees improving the visitor experience. x x Kalispell Convention & Visitor Bureau marketing Plan 2011--2012 Pg. 6 Goals Marketine Strateeies TBID Bed Tax :: ...... _ GROURT .. an.. .. ... .. .......... . ► Generate qualified meeting and convention leads Trade show attendance including coop with MTOT & Glacier Country X X Public Relations/Publicity -- host meeting planner fams, press releases X Acquisition of full time Sales Manager X Develop insight into appropriate convention and meeting target markets through research. X Sales trips X Develop program to encourage local representatives of associations/trade groups to provide leads for regional meetings. X Recruit meetings, conventions & sport tournaments Online advertising X X produce meetings & convention promotional brochure to use as lead follow-up to provide comprehensive overview of Kalispell and its meeting facilities, convention/event services and lodging properties. X Produce and distribute sports promotional brochure to planners, coaches, athletic directors and state and regional conference executives. X Create meeting planner incentive program to reward a planner or group for choosing Kalispell. X Attract and sponsor sports tournaments X 5 ARCH ;< ; ` ``.. . . . ... . . ...... . INFRASTRUCTURE RE E ......... -Photography— development of Kalispell photo library X X online photo library storage X Smith Travel Reports X Kalispell Convention & Visitor Bureau Marketing Plan 2011-2012 Pg. 7 WINTITIRM,. updated 8/4/2011 TBID Projected Revenue $ 267,,000 Rolloverfromerr Total $ r Program Description %©� Total Project Program Total Budget Staffing -images and benefits $ 1231200 37% Operations $ 26,750 B% Rent ($500/mth = $6,000) $5,000 Phone (avg $200/mth) $2,400 Office Supplies (avg $50/mth) $600 Postage & copies (avg $200/mth) $2,400 Audit $6,000 Bookkeeping (avg $too/mth) $2,400 Tax Prep $200 City of Kalispell Assessment Fee $5,000 Travel expenses (meetings and entertainment) $1,500 Tech support $500 Equipment (software) $750 Research & Education $ 5,050 1% Smith Travel Reports $4,800 Training and Education through WACVB or other accredited organizations $250 ebsite $ 12,000 4% Maintenance and enhancements, SEO & SEM Publications $ 14,000 4% Visitor guide production, printing and digital publication Consumer Marketing $ S%000 15% Kalispell promotional video $4,625 E-Marketing - content production $4,000 Social Media - Trip Advisor & Facebook content and maintenance $4,000 Other Media TBD (print, radio, broadcast) creative, production, placement $13,000 Online advertising - (banner ads, TripAdvisor) creative, production, placement $17,000 Travel shove attendance $3,000 Trade shove booth $2,000 Airport VIC kiosk display $2,000 Stock VIC at airport (6 months) $375 Event Marketing $ 45,000 13% Event & sports tournament sponsorships Group Marketing $ 48,rOO I 14% Publications - meetings & conventions brochure, sports recruitment brochure $6,500 Trade shove, FAM Trips $3,000 Incentive program to generate leads from local association representatives $2,000 Online advertising - banner ads $6,500 Meeting planner incentive program $15,000 Sales calls $15,000 Public Relations/Publicity $ 1%000 4% Public Relations - hosting travel writers, press releases, Earns $2,000 Publicity - press releases $5,000 Photography - build Kalispell photo library $3,000 Visitor hospitality training and brand awareness $1,000 Kalispell branded merchandise for sales calls and trade/travel shows $2,000 Total $ 337,000 100%