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12. Component UnitsCOMPONENT UNITS Page Fund Dept 2-8 7855 Tourism Business Improvement District $ 495,000 9-10 2700 Business Improvement District $ 192,344 Total Component Units $ 687,344 40{ry ' Ka I *i s I M ? 2 TAA PD!scovle�ry �Ia Every Direction KALISPELL CONVENTION AND VISITOR BUREAU FY 2014 MARKETING PLAN July 1, 2013 —June 30, 2014 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 deliver a consistent brand message and outstanding experiences through a cohesive allocation of bed tax and Tourism Business Improvement District funds. IDENT N 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 make Kalispell part of their Montana vacation, 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 and affordability 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 of Glacier National Park and Flathead Lake and a variety of recreation opportunities. • 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 • Kalispell is the location of 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 �� Kalispell Convention & Visitor Bureau Marketing Plan - FY 2014 Pg. 2 Opportunities: • Increase awareness of Kalispell as a travel destination, not a pass through to the Park and other areas in the Flathead Valley. • Create signature events during the winter and shoulder seasons to create a measurable impact on year- round visitations. • Work with community leaders and public officials to find opportunities to improve our public assembly venues which are limited due to size and condition. • Increase awareness of year-round activities in Kalispell, Glacier Park and the Flathead Valley to decrease the impact on the local economy due to the opening and closing of the Going To The Sun Road. • Work with the airport and other community leaders to identify opportunities to increase flights and seat capacity. • Communicate effectively with travelers and local businesses to minimize the negative perceptions around the federal government sequestration cuts. Those impacts include: 1) the closure of the Glacier Park Intl Airport control tower, 2) the decrease in hours of the custom office which impacts private air traffic from Canada by diverting them to other airports such as Great Falls or Spokane, 3) decrease in availability of services at Glacier National Park and 4) decreased hours of operation at border ports of entry. AR GEE T AUDIE Our audience consists of adventure travelers and Geotravelers who like to mix their outdoor adventure with culture, history and a charming small town experience. 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 — hiking, boating, rafting, wildlife viewing, skiing, fishing, hockey — with the opportunity to experience culture, history and an affordable variety of lodging, dining and shopping. The 2012 Institute for Tourism and Recreation Research non-resident survey provides the following information on travelers spending at least one night in Flathead County: 28% of groups have all first time visitors 53% of groups with all repeat visitors 25% flew on a portion of their trip 66% used auto/truck as their travel mode to enter MT 89%visited Glacier National Park Top activities include: scenic driving (81%), nature photography (58%), day hiking (56%), wildlife watching (50%) and recreational shopping (39%). The leisure traveler visiting our area for the first time is primarily here for Glacier National Park, and specifically to experience the Going To The Sun Road. Visitors will choose Kalispell as the base camp for their trip because we offer a central location to a number of activities and provide affordable vacation options, particularly for families. The repeat visitor is less dependent on availability of all areas of Glacier Park and branches out to the other attractions such as Jewel Basin, Lone Pine State Park, and partakes in local culture such as the historic walking tour of downtown Kalispell. The Canadian market predominantly visits for shopping, particularly around Canadian holiday weekends. They also participate in sports such as skiing and golf as the prices are lower than similar venues in Canada. The KCVB signature events are designed to attract participants and spectators from Canada. This market is a strong segment of the repeat visitor during the shoulder and winter months. Kalispell will support and leverage the brand awareness that the Montana Office of Tourism has achieved in the key markets of Seattle, Chicago and Minneapolis through participation in coop online and print advertising campaigns. The KCVB will direct other consumer marketing funds to the neighboring Canadian provinces of Alberta and southeastern British Columbia and the drive, direct flight and Amtrak markets which include Spokane/eastern Washington, Coeur D'Alene Idaho, Seattle, Portland, and northern California. Nf Kalispell Convention & Visitor Bureau Marketing Plan - FY 2014 Pg. 3 The KCVB signature events provide a strong incentive to drive visitations from our target markets during specific months that historically have demonstrated lower occupancy. • Montana Dragon Boat Festival - September: key markets include Calgary, Lethbridge, Edmonton, British Columbia, Portland, Tacoma/Seattle, and San Francisco. • Montana Pond Hockey Classic - February: key markets include Alberta and British Columbia, Minneapolis, eastern Washington and northeast U.S. through collaboration with our promoter Pond Hockey Classic. • Montana Spartan Race - May: during FY'14 Spartan Race Inc. is proposing to offer one of their upper level races in Montana which will serve as a strong destination race bringing participants from all areas of the U.S. The meetings and conventions, group and incentive target market includes groups that are 80+ in size interested in a locale which provides their attendees recreational opportunities and iconic vacation attractions such as Glacier National Park. During FY'14 the KCVB will focus on meeting planners in the Pacific Northwest, primarily Seattle and Portland. TRAVEL INDUSTRY T RENDS Today's traveler is more social, more adventurous and looking for a meaningful vacation. Specifically what they are looking for are unique experiences that connect them with the destination in a way that is authentic. Adventure should not be assumed to just mean a daring bungee jump off a bridge into a deep ravine; adventure includes both relaxing and active experiences that takes a traveler out of their normal routine. Glacier National Park, Flathead Lake, and the vast availability of outdoor recreation found in northwest Montana offers unlimited adventure. In the center of it all lies Kalispell, a friendly community with historic charm, affordable adventure and soul -stirring beauty. Today's traveler is attracted to a destination that speaks in a voice that is frank and honest, while conveying expertise. They are attracted to a destination that celebrates and supports sustainability. Kalispell's story is told through imagery and messaging that is authentic and celebrates the character of our area and sustainability such as the availability of local products and the role of local community volunteers in creating and maintaining many of the trails and parks that 4. visitors enjoy. 87% of travelers use the internet for the bulk of their trip planning. Specifically the websites used to make travel decisions are social media and consumer reviews. 88% of travelers consult reviews before making a booking and half say reviews are the greatest influence on booking choices. (Eye For Travel, DigitalVisitor.com) This "earned media" is what consumers trust above other forms of advertising. Nielsen Global Survey reported that 92% of consumers trust word-of-mouth and recommendations from friends and family above more traditional media, an 18% increase since 2007. Kalispell's social presence includes Facebook, Twitter and a sponsorship of Kalispell's Trip Advisor site. Additionally we connect consumers to DiscoverKalispell.com through live feeds of those social media sites. A Michigan State University study shows that people using smart phones have tripled. The study also revealed that wireless use was higher on vacation (40%) than at home (25%) and that people use the web more to plan vacations (80%) than for work (70%). Since Wi-Fi is available at most locations travelers check local weather, restaurant recommendations, fishing reports, trail maps and much more during their visit. Destination Marketing Organizations don't get to decide which platform or device is used to access that information, the visitor decides. With the increase in use of mobile devices Kalispell is retrofitting DiscoverKalispell.com to responsive web design to provide travelers with the most comprehensive and user-friendly access to internet connectivity and information regardless of their device of choice. During 2011 and 2012 hotel occupancy in Kalispell increased a total of 12.3%. July and August trend well above 90% while occupancy during Novemberthrough February historically has averaged around 35%. Kalispell saw a 7% increase in occupancy for the months of Nov 2012 — Feb 2013. In speaking with local Kalispell restaurants and retail outlets several stated that they saw a 30% increase in business during the late fall and winter months. The key strategies for FY'14 are designed to continue to make a measurable impact on visitations during the shoulder and winter months. .r Kalispell Convention & Visitor Bureau Marketing Plan - FY 2014 Pg. 4 HOW THE MARKETING PLAN SUPPORTS THE -YEAR STATEWIDE TOURISM STRATEGIC PLAN The Kalispell Convention & Visitor Bureau supports the Montana Tourism and Recreation Strategic Plan 2013-2018. GOALS I. Achieve increased inquiries and visitations through a targeted consumer marketing campaign II. Increase publicity placement of Kalispell in travel media in key markets III. Improve the visitor experience and available resources IV. Play an active role as a voice for tourism and in the planning and evolution of community enhancements V. Generate qualified meeting and convention leads VI. Recruit regional sports tournaments VII. Secure events that have long-term potential during shoulder and winter seasons OBJECTIVES Consumer Travel a. Increase Kalispell CVB opt -in subscriber base by 1,000 individuals b. Increase unique visitors to DiscoverKalispell.com by 10% over FY'13 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. Generate 3 FAM trips to Kalispell (travel media, press trips, tour operators, promoters, planners) Groups/Sports/Events a. Achieve 1,000 unique room nights between September and June in the groups and meeting market b. Achieve 3,000 unique room nights between September and June in the special event and tournament market Secure 3 events during target seasons MARKETING STRATEGIES To reach the FY14 marketing plan goals the key strategies are designed to build upon successes realized in FY13 and look to new opportunities to connect with potential travelers and build the awareness of Kalispell as a travel and meeting destination. The initiatives are designed to reach the visitor during the three-phase travel decision process of inspiration, orientation and facilitation through utilization of the media and technology that reach today's travelers. Strategies: Rationale / Expected Outcome: Funding: Travel Continue to enhance and refine the website to create an exceptional planning tool for visitors. This will include a retrofit of the site in Responsive Web Design to augment the content, look and functionality DiscoverKalispell based on the user's screen size (i.e. which device they are using) with a goal of increasing site duration by mobile devices. Continue to monitor website analytics to decrease overall site bounce rate, increase site duration and pages per visit. Engage consumers through a feed of reviews from Trip Advisor, Facebook and other social media. 40, Nk* Kalispell Convention & Visitor Bureau Marketing Plan - FY 2014 Decision: Inspiration TBID Orientation Facilitation Pg. 5 The advertising strategy will focus on increasing visitations between September and June through highly trackable media that builds awareness of Kalispell as a travel destination: Online marketing through banner advertising TBID / Inspiration Trip Advisor sponsorship Bed Tax Advertising and MTOT Coops and other sources Social Media Print, radio and broadcast opportunities that demonstrate strong ROI in our target markets. Promoting the fall, winter and spring experiences available in Kalispell TBID / and surrounding area and identifying Kalispell as an adventure sports Bed Tax destination through promotion of signature events and activities. KCVB will send subject -specific communications quarterly and as Inspiration E-Direct Marketing applicable to promote special events and create incentives for travel Bed Tax Orientation through promotion of packages, sample itineraries and signature events. Facilitation KCVB Database Increase opt -in KCVB database through trade and travel shows, online TBID / and social media advertising and promotional campaigns. Bed Tax The Kalispell visitor guide will be used as a fulfillment piece. Annual redesign of the guide will take into consideration the findings from TBID / Inspiration MTOT's visitor guide study and include Region/CVB design standards on Bed Tax Orientation cover to identify as "official" state travel guide. Increase the number of Collateral distribution points in our target markets. Niche publications will be produced in cooperation with local businesses Inspiration and organizations. Examples include regional birding brochure and a TBID Orientation brochure promoting local wineries, breweries and distilleries. KCVB will promote Kalispell at three consumer shows per year which Travel Shows include Calgary and targeted demographics such as Sportsman Expos, TBID / Inspiration Winter Sports Expo, and Travel and Adventure shows held in identified Bed Tax Orientation target markets. Ci ltLlt rrerea pu llp� y placement ref Ka��pell ini`�xavel r�ed�a r� ftey mar�et�;' The KCVB will invest in publicity efforts to position Kalispell as a travel destination. Media coverage and endorsement of Kalispell will continue Public to drive discovery of our destination to an audience that we could not TBID Inspiration Relations/Publicity afford to reach with traditional advertising. This will be achieved through Orientation hosting travel writers, generation of story pitches and press releases highlighting specific activities and to promote our signature events. :�00A,L ltl the usitbrexperenceandrsresources. The KCVB seeks to create brand ambassadors in the local community by TBID / Facilitation promoting Super Host and Sustainable Business training. Bed Tax Traveler Resources Expanding available visitor services through participation in MTOT's VIC Bed Tax Facilitation Program. Continued implementation of the downtown and city-wide Wayfinding TBID / Facilitation system. Bed Tax 40 Kalispell Convention & Visitor Bureau Marketing Plan - FY 2014 Pg. 6 The KCVB will continue to work cooperatively with Voice of Montana Tourism Industry Tourism and Tourism Matters to Montana, to educate Flathead Valley Relations residents, business leaders and legislators on the economic benefits of TBID tourism and importance of tourism funding. DMAI Membership and EPowerMINT subscription Bed Tax Facilitation Meeting Planner Trade Shows and familiarization tours TBID Inspiration Orientation Meetings and Assist member lodging properties to develop effective reporting program TBID Conventions to help TBID gauge room pickup through TBID initiatives Build through the CRM a consistent message to planners interested in TBID / Inspiration Kalispell. Push out through online and print advertising and emarketing. Bed Tax Create incentives for state and regional sporting events to relocate to Sports Tournaments Kalispell that will drive room nights during the winter and shoulder TBID Inspiration Facilitation season. The KCVB will continue to identify events that have national appeal and reinforce the destinations key attributes. The events will be strategically placed in the shoulder and winter seasons to minimize regional date conflicts and meet strict criteria for long-term growth. The KCVB will Inspiration Event Recruitment continue to build out of market participation and identify growth TBID Facilitation expectations for Dragon Boat, Spartan Race and Pond Hockey events. Create a national brand that Kalispell is the place for adventure sports and enthusiasts. Identify opportunities to reinforce that message through local partners and places. BUDGET The KCVB combined budgets of bed tax and TBID total $593,546 with 60% of that total directed at the key marketing strategies described above. In addition to the TBID funds KCVB utilizes a private account to manage the signature events which is comprised of revenues and expenses directly related to the administration and marketing of Dragon Boat and Pond Hockey. Revenues include grant funds, event sponsorships, participant registrations, and vendor fees. Expenses charged against those revenues include advertising and marketing expenses, promoter fees, safety and insurance expenses and outside services utilized for event production. '%01� Kalispell Convention & Visitor Bureau Marketing Plan - FY 2014 Pg. 7 TBID Marketing Plan Budget FY'14 TBID Projected Revenue, $ 475,000 Rollover from FY'13 $ _._ 20,000 Total'_ $ 495,000 Other !Program Description '.. Program %of Total Event : Total Event Total Event Net to Project Total". Budget Revenues Revenues'. Expenses. TBID Staffing - wages and benefits $146,918 30%: .Operations.. __ _..._. _....... _..... $ 31,400 _.. 6%,..._. .. !Rent ._.... .. ...._.. $6,780 _. _.. ..._ Phone.... _.. __.. _. .Office $2,520 ...... ,.. Supplies ....... ...._ .. _.. ".. _... -- _-$900 Postage & copies $2,400 _ 'Audit _.._. _.. _. _.._. ... _.... .. _.. $6,000 _$2,400 Bookkeeping - _ . - Tax Prep $200 'City of Kalispell AssessmentFee$5,000 Travel & entertainment expenses _...... _... _._. _._. $2,500 _.._.$500 _.. .. Techsupport Equipment&Furniture $2,200 Research, Education, Memberships " $ 81800 2% . Smith Travel Reports ._.. $4,800, Trainingand Education. ,_.. $500 Memberships(TMMT,Voices of MTTourism, KDA,Calgary CVB) $3,500 Website. .... $ 25,000 5%.; Ma i ntena nce a nd enhancements $15,000! SEO&SEM $10,000 .Publications $ 12,000 2% Visitor guide and niche brochures - 'Consumer Marketing _._ _...... _..._.. ... .... _... $ 87,150 18%__.. Build photo and video library $15,000, Social Media administration_(Trip Advisor, Facebook, Twitter)_. $20,000 ". Creative services: creativefor online, print, broadcast $8,000. Media buy: placementfor online, print, broadcast "show $25,000 .. Travel attendance ... .. _... _.... $8,000 _.._.. Tra de show booth... $400 .._. Airport VIC maintenance $750" ''.Wayfindingsignage $10,000 Event Marketing $ 85,000 . 17%; Montana Dragon Boat Festival .Glacier $25,000 $89,300 $114,300 ($114,950) ($650). Series Spartan Race $20,000 $0$20,000 (520,000) $0.. "Pond Hockey ...... ...... - -.- $20,000- !.. $66,500 : $86,500 ($69,800)$16,700 _.. Other event sponsorship $10,000 Event Promoter Recruitment $10,000 Group Marketing _ _... _.... $..79,000 16% Trade shows -...._ ._.... ...._. _... $20,000' -$10,000 Meeting Planner FAM Incentive program to generate leads from meeting planners $5,000 Group photo and video library $6,000 Online advertising- banner ads, social media $10,000 Print advertising- meeting planner publications $8,000 - Customer Relationship Management System (CRM) $5,000. - ;Sports Tournament Recruitment $15,000 Public Relations/Publicity$ ..._.. .....$7,300 19,732 4% Hosting travel media. (Press releases, story pitches, reactive requests, press room $10,000! Visitorhospitality training, volunteerappreciation $500 Kalispell branded merchandise $1,932 ...... __... _. _...... __..... _._. ...Total _. i $495,000 ` 100%'. Kalispell Convention & Visitor Bureau Marketing Plan - FY 2014 Pg. 8 BUSINESS IMPROVEMENT DISTRICT FUND: 2700-490-470330 PROJECTED REVENUE AND FUND SUMMARY BEGINNING CASH 10100 CASH: Operating Total Cash REVENUES 363010 Assessments 311100 Levy 312000 Penalty & Interest 346050 Festivals 365000 donations 371010 Interest Total Revenue TOTAL AVAILABLE EXPENSES Operating ENDING CASH CASH: Operating estimated proposed ACTUAL ACTUAL BUDGET ACTUAL I BUDGET FY10/11 FY11/12 FY12/13 FY12/13 FY13/14 $115,960 $129,945 $128,044 $128,044 $90,844 $115,960 $129,945 $128,044 $128,044 $90,844 $23,194 $25,477 $24,142 $30,000 $30,000 $54,099 $60,057 $57,466 $60,000 $63,000 $398 $1,194 $800 $800 $1,000 $3,375 $940 $1,000 $1,000 $1,500 $0 $1,361 $1,000 $5,000 $5,000 $1,370 $1,296 $1,200 $1,000 $1,000 $82,436 $90,325 $85,608 $97,800 $101,500 $198,396 $220,270 $213,652 $225,844 $192,344 $68,451 $92,226 $213,652 $135,000 $192,344 $129,945 $128,044 $0 $90,844 $0 DOWNTOWN BUSINESS IMPROVEMENT DISTRICT WAS CREATED May 17, 2004 by Resolution 4891A adopting a budget and providing funding through a mill levy and assessment combination. 9 BUSINESS IMPROVEMENT DISTRICT FUND: 2700-490-4703 3 0 EXPENDITURE DETAIL/SUMMARY PROGRAM: STAFFING: 349 Mileage/Supplies/Conferences/ Rent 350 Contract staff- coordinator 353 Contract staff- other IMPROVEMENTS: 240 History plaques on buildings 244 Way finding signs 245 Welcome sign at entrances to district COMMUNICATIONS: 322 Newsletter 345 Cell Phone/Wireless 352 Web Site Development/logo 357 Contractor - Twitter/Facebook/B log DEVELOPMENT ACTIVITY: 351 Development Activity: Contract services 354 Concerts 355 Fagade Improvement Program 365 Advertising/Publications 366 Sponsorship/Events 530 Insurance TOURISM: 356 Printing BEAUTIFICATION: 360 Art 364 Cleaning & Flowers 522 Administrative Transfer Total Budget proposed ACTUAL ACTUAL BUDGET BUDGET FY10/11 FY11/12 FY12/13 FY13/14 $3,711 $4,000 $4,000 $35,453 $27,961 $28,000 $28,600 $7,750 $8,800 $15,000 $171 $9,000 $5,000 $30,000 $40,000 $10,000 $10,000 $200 $300 $409 $745 $850 $1,000 $4,927 $2,862 $4,200 $4,000 $700 $8,538 $9,600 $3,650 $10,108 $7,059 $70,705 $13,278 $1,306 $3,000 $0 $20,000 $18,037 $10,000 $21,000 $1,230 $3,000 $3,500 $5,462 $8,363 $7,295 $7,600 $8,763 $355 $5,350 $6,000 $2,000 $2,000 $2,458 $2,157 $5,500 $4,000 $2,152 $2,152 $3,416 $68,451 $92,226 $213,652 $192,344 10