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14. Resolution 5588 - Budget Resolution - Tourism BIDCity of Kalispell Post Office Box 1997 - Kalispell, Montana 59903-1997 Telephone (406) 758-7000 Fax - (406) 758-7758 REPORT TO: Doug Russell, City Mana ;\ FROM: Rick Wills, Finance Director SUBJECT: FY2013 Tourism BID Budget MEETING DATE: August 20, 2012 BACKGROUND: The annual appropriations and the work plan are presented for Council consideration. The budget requested is $475,300. 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 its books to track their revenue or expenditures. Collections for hotel assessments are passed through to the Chamber. RIFCOMMENDATION: Adoption of Resolution. FISCAL EFFECTS: $475,300. Rick Wills Finance Director Report compiled: Aug 10, 2012 Attachment: TBID work plan Ail 9 V U'Rol V IN 611 [4 U 0 10, WANNURN BTU,• SECTION I. That the annual appropriations for the Tourism Business Improvement District of the City of Kalispell, Montana are hereby fixed as follows: ►'1111,11 1111 1111111!�Iiiii 11 �i � :' 11 111111 �k 6 1 -- - 0-1 WILUMN.,•� 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 III. 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 2012-2013. CITY OF KALISPELL, THIS 20TH DAY OF AUGUST, 2012. Tamrni Fisher Mayor ATTEST: Theresa White City Clerk al K a li"s O tk TA N Alpoe' ; in Eveo Direction au-1. smA FY 13 MARKETING PLAN July 1, 2012 —June 30, 2013 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 Tourism Business Improvement District funds. Kalispell's brand aligns with the Montana Brand, offering a cohesive voice when marketing our state: More spectacular unspoiled nature than anywhere else in the lower 48. o Kalispell is 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 is a mix of proximity, city comfort and discovery. When visitors choose Kalispell for their Montana trip, they will discover something fun, exciting, unexpected or remarkable no matter the direction they head. Breathtaking experiences by day and relaxing hospitality at night. o In Kalispell we are welcoming tour guides and genuine people who care about the visitor experience. We provide lodging, dining and entertainment with a sense of Montana sophistication that our visitors find both surprising and comfortable. Kalispell is: • We are in the MIDDLE of what people come to Montana for: iconic natural wonders, resort/recreation opportunities, friendly small town. • We are nonstop DISCOVERY: there's something new to see and do in every direction • We are BALANCE for an outdoor -centric trip: from national brand stores to fun boutiques, from symphony concerts to farmers' markets, from blue plate specials to four -star gourmet We are GENUINE hospitality: Kalispell is a real town with community events and warm, welcoming people who are enthusiastic about sharing the place they live 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 Park Int'I Airport and Amtrak's Empire Builder Opportunities: increase awareness of Kalispell as a travel destination, not a pass through to the park and other towns in the Flathead Valley ® increase awareness of year-round activities in Glacier Park and other parts of the valley to decrease the impact the opening and closing of the Going To The Sun road has on our area. Kalispell Convention & Visitor Bureau Marketing Plan 2012-2013 fi Work with community leaders and public officials to find opportunities to improve our public assembly venues which are limited due to size and condition Create signature events during the winter and shoulder seasons to have a measurable impact on year-round visitations ® Work with the airport and other community leaders to identify opportunities to increase flights and seat capacity ® Continue to promote the affordable variety of lodging, dining and activities found in Kalispell which is an important factor in traveler's planning decisions due to the slow recovery of U.S. Economy U.S. Travel predicts that Americans will travel farther and spend more in 2012, primarily showing an increase in long - haul bookings. Domestic leisure travel may decrease during 2012 compared to 2011 and remain flat into 2013. Business travel is predicted to increase with 85% of business travelers surveyed expecting to take more or the same number of trips as last year. (U.S. Travel Association) According to the Office of Travel & Tourism industries (OTTI) travel from Canada into the U.S. is projected to remain strong. Top motivators for travel are the lower accommodation rates and level of promotion by U.S. businesses and destinations. Additionally, the concerns over passing through ports of entry have appeared to have dissipated for the most part and were rated as not having an impact on travel. The Canadian market is especially important to our northwest Montana region. Many businesses as well as our lodging partners feel travelers from southern Alberta are a significant contributor to our local economy during the shoulder and winter months providing an average of 30% of the revenue to retail and other sectors. Recent surveys completed in our region tracking the perceived impact of border crossings on a Canadian's ability to travel agree with the OTTI findings that it is not seen as a deterrent. Target Geographic Markets: Through ITRR and the Kalispell VIC we know that visitors interested in Kalispell and our region primarily come from: Alberta, CA, ID, CO, MT, WA, British Columbia, MN, TX, OR, and NY. The KCVB will narrow that focus to the neighboring Canadian provinces and the shorter drive, Amtrak and direct fly markets. We'll leverage the brand awareness MTOT has achieved in their key market of Seattle, Chicago, Minneapolis and Salt Lake City to target visitors already interested in a Montana vacation enticing them to select Kalispell as the destination. Target Demographic Markets: a. Leisure market: Our audience consists of soft adventure travelers and Geotravelers who like to mix outdoor and city activities. Kalispell's audience is not united by age or demographic or by their reason for visiting (vacation vs. business). What our visitors share is that they're looking for a taste of outdoor adventure — hikes, boat rides, river rafting, wildlife viewing, skiing, fishing, etc. — but with the opportunity to enjoy city fun, affordably as well. b. Group: Groups that are 80+ in size interested in a Pacific Northwest/Rocky Mountain locale which provides their attendees with a destination that offers recreational opportunities and iconic vacation attractions such as Glacier National Park. s r, Leisure Travel a. Achieve increased inquiries and visitations through targeted marketing campaign and incentives b. Increase publicity placement of Kalispell in travel media in key markets c. Enhance visitor resources and the role of the VIC in the local community d. Play an active role as a voice for tourism in the planning and evolution of community enhancements Groups and Meetings a. Generate qualified meeting and convention leads 40 Kalispell Convention & Visitor Bureau Marketing Plan 2012-2013 0 b. Recruit meetings, conventions & sports tournaments c. Assist hotels with reporting and retention program Events a. Secure events that have long-term potential 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, low impact visitors 1.1.d Continue marketing to international travelers 1.1.e Enhance tracking/reporting and ROI 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 1.3 Collaborate with tourism marketing partners to plan/implement priority marketing efforts 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 1.4 Improve Montana's Visitor Information System to extend visitor stays and spending 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 Goa14: 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. 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. Kalispell Convention & Visitor Bureau Marketing Plan 2012-2013 W Goal 9: increase funding to maintain sustainable tourism and recreation. 9.2 Foster opportunities to pool public and private marketing dollars 9.3 Enhance funding for region and CVB marketing efforts Goal 10: Build an effective "team" to 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 10.4 Streamline reporting process of marketing plans/expenditures to TAC/TM by regions & CVBs 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 Leisure Travel a. Increase Kalispell CVB opt -in subscriber base by 1,000 individuals b. Increase unique visitors to DiscoverKalispell.com by 5% over FY'12 c. Generate 4 media stories in target markets through increased public relations efforts d. Promote Kalispell at 3 consumer travel shows in key markets e. Increase visitor information requests by 2 % over FY'12 Groups, Meetings, Tournaments a. Facilitate and secure 20 GMT's of 100 room nights or more per group b. Increase room night bookings from groups, meetings and tournaments by 5% c. Contract two regional or national association conferences to Kalispell Events a. Secure 3 events during target seasons that will create a total of 2000 room nights Through a combination of public and private funds the marketing strategies in 2012-2013 will build upon that foundation that has been put in place since the KCVB's inception in August 2010 to further the awareness of Kalispell as a travel destination to our target markets and work cooperatively with other local agencies and organizations to grow Kalispell's vitality. The key strategies include: a. Internet: Following the initial launch of DiscoverKalispell.com in July, 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 press room, reorganization of key elements based on website visitor trends and creation of a mobile site. 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 awareness of Kalispell through highly trackable media. Primary media will be online marketing through Trip Advisor, 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 online cooperative marketing opportunities with MTOT. v Kalispell Convention & Visitor Bureau Marketing Plan 2012-2013 c. E-Direct Marketing: To support our efforts of direct marketing in leisure and group there will be a strong emphasis on continuing to grow our opt -in database. We'll continue to segment the database and send subject -specific communications via e-marketing. Methods used to increase the KCVB database include trade and travel shows, increasing opt -in subscribers through online and social media advertising and promotional campaigns. d. Collateral: The Kalispell visitor guide will be used as a fulfillment piece. During FY'13 strong emphasis will be placed an increasing the number of targeted distribution points. Other publications for niche travel groups will be produced in cooperation with local entities. Examples include regional birding brochure, and a brochure promoting our agriculture -tourism businesses. e. Trade and Travel Shows: KCVB will attend shows in target markets such as Calgary and to targeted audiences such as Intl Sportsman Expo, Winter Ice -Fishing Expo as well as DMAI, Affordable Meetings West and TEAMS. f. 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 meeting planner and travel writer fams and story pitches and press releases highlighting specific activities and promotions in target markets. g. Tourism resources and education: The KCVB seeks to create brand ambassadors and enrich the visitor experience through Super Host and Sustainable Business training. The KCVB will leverage 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 and improved wayfinding and visitor information signage. The KCVB will continue to work cooperatively with other local CVB's and tourism related organizations to educate the area on the value of tourism to our economy and cooperative methods of increasing out of area visitation, particularly from the Canadian market. Marketing plan goals will be supported by the following initiatives: Goals Marketing Strategies TBID Bed Tax LEISURE 'ti ,-.AVEL Achieve increased inquiries and visitations through targeted marketing campaign and travel incentives Website maintenance & enhancements including SEO and mobile website X Visitor guide - production & printing, creation of digital guide X Visitor guide distribution X Promote Kalispell during shoulder and winter seasons through media that provides trackable ROI Ongoing E-newsletter campaign X X Social media — enhance Facebook and You Tube, implement Twitter other resources X Print, radio or broadcast advertising X Online advertising (banner ads, SEM, Trip Advisor) X X Direct marketing initiatives in non-stop fly markets such as Seattle X Online and print coop programs with MTOT X Attend consumer travel shows in target markets X X Create incentives, contests and event promotions through social media and banner ads to increase inquiries and opt -in subscribers X Increase publicity placement of Kalispell as a travel destination in key markets Host travel writer, TV or radio producers encouraging editorial coverage in key markets X X Partner with nationally known Kalispell resident to produce testimonial for X eel47 Kalispell Convention & Visitor Bureau Marketing Plan 2012-2013 use in various media Implement press room on DiscoverKalispell.com X Enhance visitor resources and the role of the VIC in the local community Expand role of VIC in community -ticket sales/event registration X X Wayfinding signage X X VIC collateral at key area visitor interaction points such as gas stations X X Maintenance and enhancements of airport visitor display X Host Sustainable Business Workshops and Super Host sessions X X Work cooperatively with other organizations and businesses to create specialty brochures to promote visitor attractions X X Play an active role as a voice for tourism in the planning and evolution of local community enhancements Work with other community groups and stakeholders to facilitate improved public assembly venues and increased air flights X Goats Marketing Strategies TBID Bed Tax GROUP TRAVEL - MEETINGS, CONVENTION and SPORTS RECRUITMENT Generate qualified meeting and Attend top meeting, convention and sports trade shows in industry X convention leads Public Relations/Publicity — host meeting planner fams, press releases X Enhance meeting and event planners destination webpage and collateral X X Continue to expand test markets for convention and meeting planner recruitment X Local networking events for industry relationships on association boards X Implement meeting professional CRM program X Recruit meetings, conventions & Online advertising, social media, emarketing, YouTube, Smart aps X X sport tournaments 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 Reporting and retention program Implement property specific program for reporting of group pickup and revenues. Assist hotel with relationship building events for planners and long term customers. X Goals Marketing Strategies TBID Bed Tax INIF TRUCPURE/RESEARCH Build Kalispell photo library and all season promotional video X X Online photo library storage for distribution to press X X DMAI membership and EMint Subscription X Hospitality Sales Marketing Association International membership X Smith Travel Reports X 4W Kalispell Convention & Visitor Bureau Marketing Plan 2012-2013 Pg. 7 IN x TBID Projected Revenue $ 465,300 Rollover from Fy'12 $ 10,000 Total $ 475,300 Program Description Staffing - wages and benefits Operations Rent, phone, office supplies, postage & copies, tech support, equipment Audit, Bookkeeping, tax prep City of Kalispell Assessment Fee Travel & entertainment expenses Research & Education Smith Travel Reports, training & education Website Maintenance and enhancements, SEO & SEM, Mobile Website Publications Visitor guide production, printing and digital publication, specialty brochures Consumer Marketing Build photo and video library E-Marketing—Online Marketing Social Media — Other Media (print, radio, broadcast) Travel show attendance and booth display Airport VIC kiosk display enhancement and monthly stocking Wayfinding signage Event Marketing Signature Events: Montana Dragon Boat Festival, Glacier Series Spartan Race, Huckleberry 100 Bike Ride, Race & Concert Winter Rodeo Recruitment Campaign Event Promoter Recruitment Regional Venue and Event Sponsorship Group Marketing Meeting, Convention and Event Planners Guide and photo acquisition Trade shows, DMAI, MEET West, + 1 Meeting Planner FAM Incentive program to generate leads from meeting planners Online advertising - banner ads, social media Print advertising - meeting planner publications Custos. per Relationship Management System (CRM) Sports Tournament Recruitment Association Memberships Contingency % of Total Program Total Budget $ 127,262 27% $ 33,155 7% $ 6,133 1% $ 23,000 5% $ 16,000 3% $ 82,500 17% $ 85,000 18% $ 85,000 18% Public Relations/Publicity $ 17,250 4% Travel writers FAM, press releases, story pitches Visitor hospitality training and brand awareness Kalispell branded merchandise for sales calls and trade/travel shows Total $ 475,300 100% If revenue decreases by 5% reductions will be made in trade/travel show attendance, airport kiosk and/or wayfinding Kalispell Convention & Visitor Bureau Marketing Plan 2012-2013 IN