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12. Component UnitsCOMPONENT UNITS Page Fund Dept 1-28 TBID Annual Marketing Plan 29 7855 Tourism Business Improvement District BID Budget Letter 30-34 2700 Business Improvement District Total Component Units 574,000 $ 103,388 $ 677,358 1- •fir 1 i`ry. i 1�L4r .- `.�JJ ��1111111111111 r ti. k — :5 f; i6��7i .. t • t - ,. i t y,b r i�t.. �. dw •fir � n + � ...r ' �• �•w''. "' ._• � .-- 1� ` t r At Ir it dft pow + �SF . � r -. �.i �I� Sri •,M'r .s � r .! .�=�r ' � � r�4, r �?[ F y • . •r . � `�• ,.', .! ��' •t •-rltf}�•.,.,h�r � it �� -rf t ' --�+ •~z "+�. ��! � `r �' �r�trfl+. 1 ' f 3 i ll;� r �- ,' i. •;yfs�i �w�~,; + S+�� ,t x `.. A (W7 J Sy? 7WO r • . ' f, - i_ it a - w w rr 4, • r�• df FY 2017 MARKETING PLAN Dioscover M "" a ISDe The Flathead Malley gets to the heart of what Montana is all about — breathtaking landscapes and peaceful vistas surrounding a vibrant economy that is a rising star in the region. In a valley busting with adventure and opportunity, Kalispell is the historic, economic and government center. It boasts a wide range of leading industries —tourism, agriculture, manufacturing, and health care —that are tucked between towering mountain ranges, the largest freshwater lake in the west and the famed Glacier National Park. one of the fastest growing cities in Montana, Kalispell blends its "old West" roots to its modern identity as a small town with global reach. Kalispell is a place where historic character converges with contemporary culture. Up and down Main Street and radiating for blocks to the east and west, today's vibrant downtown core offers a lot more than just window shopping and architecture gazing. The dining scene is full of casual sophistication, storefronts open their doors and welcome passersby for events that showcase wine and art displays or musical acts, and the community is filled with artists and artisans from musicians and singers to painters and sculptors. Living here means adventuring. Hiking and camping throughout the idyllic Crown of the Continent. Skiing knee-deep powder at one of the largest resorts in Montana, riding miles of single-track on a mountain bike, casting a homemade fly at the silver sheen of a trout or paddling one of the 500-plus lakes that fill this corner of the state, including the crystal-clear waters of Flathead Lake. What's best about Montana, Kalispell has it. 91 #DiscoverKalispell • niscover Kalispell Caption this. -ail we could come up with is "wow!" Like kLl Comment ,r. Share see tit 4 T t 11 C4,t 't M SOCIAL MEDIA Discover Kalispell V Risit—Kalispell DiscoverKalispellMoo Una aSCi/!w KA4811 #d1semrkarspell www , D 1 SC 51 @(Kali seal lien WEMftA_4`EW Kalispell Chamber of Commerce/Convention & Visitor Bureau - FY'17 Marketing Plan � _ 12 2015 Nonresident Data for Kalispell 22°% of groups all first time visitors 62% of groups with all repeat visitors 53°% stated primary reason for trip is vacation. Of those who had visited Montana before, 42% said their last visit was less than one year ago 24% flew on a portion of their trip Top Entry Points: 2015 - Superior, west Yellowstone 2014 — Superior, Rooseville Residence of Origin: 2015 - WA, CA, O R, I D, CO 2014 - WA, BC, OR, MN, AB Lodging: 2015 - 48°% stayed in hotel/motel; 22% home of friend/relative; 6% rented cabin/ home 2014 - 61% hotel/motel; 18°% home of friend/relative; 4% rented cabin/home Flathead County Nonresident visitors spent $668 million in 20141 the highest level of all counties. (ITRR) Nonresident Travel is 20% (the largest single category) of Flathead County's economic base. f BBERI State of Kalispell Top S Expenditures �.l�e�taara�t 1. Retail Safes 3. Gasoline IL ter■ i. . Groceries 5. Hotel * During 2015 Kalispell saw growth in the financial, healthcare and hospitality sectors with new construction and acquisitions. • The retail sector saw growth both from national brands such as Dress Barn and Ulta and a strong influx into our historic downtown core with businesses such as The Toggery and Sage & Cedar. • Construction began on the final $34M segment of the bypass which will serve to reduce truck traffic through historic Main Street. • Kalispell was awarded a $10M TIGER grant for Glacier Rail Park and downtown infrastructure enhancements. • To keep pace with the needs of our growing community the City of Kalispell launched a Core Revitalization Plan and Downtown Plan. • Kidsports sporting complex was awarded a $1.41M grant for facility additions and improvements. • Discover Kalispell, in cooperation with the City of Kalispell, is completing the city-wide phase of the Kalispell wayfinding project. • Glacier Park International Airport set a new record of 452,588 total passengers, a 3.8% increase over 2014. • Glacier National Park recorded an all-time visitation record of 2.3M visitors despite a serious fire season. • Kalispell is the state's seventh largest city with a population of 21,518 (2014) and a growth rate of 40% since the 2000 census. Kalispell Chamber of Commerce/Convention & Visitor Bureau - FY'17 Marketing Plan P a g e 3 Structure The Kalispell Convention & Visitor Bureau is a division of the Kalispell Chamber of Commerce. It is funded through Kalispell's share of the 4% Lodging Facility Use Tax (Bed Tax) and the $2/room night Tourism Business Improvement District (TBID) fee. The Kalispell CVB is governed by Kalispell Chamber board and the Tourism Advisory Council that approves and oversees spending of bed tax funds, and the Kalispell TBID board of directors and the Council of the City of Kalispell that approves and oversees spending of TBID funds. AWARDED Montana Event of theYeart Pond Hockey Classic Montana Film Friendly Community- Kalispell 09hAl de 4 EVENTS Produced Four highly successful events In the shoulder and winter months r10011, $6.7 MILLION The signature events generated $6.7 million of economic impact to the local area CONFERENCES Discover Kalispell booked several key conferences including Montana Governor's Conference on Tourism. Professional Outdoor Media Association, Montana State Parley Division, Clan Donald, Enlisted Association of the National Guard of Montana to MEDIA EARNED Received media in major publications and broadcasts: sunset Magazine, American Profile Magazine, Alaska Airlines Magazine Calgary Herald, American Cowboy, Meetings Today, NBC Sports -Montana Spartan Race, and Tam Gruenwald outdoors. During M 15 die TBID revenue increased by 5% over FY 14 with the highest increases in Q3 Uan-Morj and Q4 (Apr -Jun). Purpose of marketing plan The FY17 marketing plan serves to direct the initiatives and spending for Discover Kalispell and inform and educate the board of directors, community stakeholders, Tourism Advisory Council and the City of Kalispell. The bed tax and TBID funds work complimentary to support one marketing plan. The mission of Discover Kalispell is to build awareness of Kalispell as a travel destination and increase room night stays in Kalispell hotels and motels. This is done with a consistent brand message delivered through a mix of advertising, signature events, public relations, group sales, and service programs to promote visitations during the shoulder and winter seasons. Kalispell Chamber of Commerce/Convention & Visitor Bureau and Visitor Information Center President/CEO: Joe Unterreiner, joe@kalispellchamber.com Director/CVB: Diane Medler, diane@discoverkalispell.com Group Sales Mgr: Dawn Jackson, dawn@discoverkalispeli.com Sales & Admin Assist: Vonnie Day, vonnie@discoverkalispell.com Visitor Services: Meche Ek, info@discoverkalispell.com www.l(alispellchamber.com I www.discoverkalispell.com 15 Depot Park, Kalispell MT 59901 405- 75 8-2 811 888- 8 88-2 3 08 Kalispell Chamber of Commerce/Convention & Visitor Bureau - FY'17 Marketing Plan 14 Kalispell Exemplifies the Montana Brand More spectacular unspoiled nature: Kalispell sits in a valley where one national park, two national forests, and one wilderness area converge. Vibrant and charming small town: A vibrant downtown that merges historical charm with contemporary culture. Breathtaking experiences by day, relaxing hospitality at night: Making waves on Flathead Lake, rafting the Middle Fork, cycling the Going -To -The -Sun road, exploring `The Bob', or viewing fall's dramatic transformation in the Flathead National Forest. However you choose to spend the daylight hours, your evenings will be full of hearty food and homey accommodations in Kalispell. Discover Kalispell compliments the Montana brand by using large -landscape inspirational images, photos showing the active adventurer set within the landscape, and casual interactive images demonstrating local amenities. About Kalispell Strengths Kalispell offers visitors a balance of city and outdoor adventure with our museums, shopping and dining located right in the middle of Montana's most iconic natural places. Its residents are welcoming tour guides and genuine people who care about the visitor experience. Kalispell is not a resort town, but a real Montana community with an authentic history, traditional industries and real, local events. Kalispell provides a full range of lodging, dining and shopping options that help make for a great vacation on any budget and with a sense of Montana sophistication that visitors find both surprising and comfortable. • The place to discover the history of the Flathead Valley through three well-preserved museums and iconic Main Street buildings. ■ Energized downtown that is experiencing a reinvention including new retail that have a local and global reach as well as popular new eateries and breweries. Annual signature events such as the Montana Dragon Boat Festival, Montana Spartan Race, Montana Pond Hockey Classic and The Event at Rebecca Farm that attract participants from across North America. • Kalispell is the regional hub of the Flathead Malley and the location to host larger meetings and conventions. Kalispell Chamber of Commerce/Convention & Visitor Bureau - FY'17 Marketing Plan P a g e 15 Opportunities * The 2016 National Park Centennial provides a great opportunity for the KCVB to capitalize on our close location to Glacier National Park (GNP). Discover Kalispell primarily promotes GNP in the shoulder and winter seasons highlighting the unique activities and experiences available outside of the busy July -August reliance on the full length of the Going To The Sun Road. we will continue to work with GNP leadership and staff and be proactive to inform visitors of delays during peak times and redirecting visitations to other times of the day and seasons. From Flathead Lake cherries to huckleberries from the surrounding mountains, locally grown and raised vegetables, or yak and bison, this valley is home to an assortment of tasty foods that are blended into the community flavor. Agriculture is a deeply rooted tradition with generations of families living and working in local farms and ranches. Discover Kalispell will continue play a role in promoting and building our agri-tourism product through promotion of locally sourced products, tours, and activities that are available to visitors and groups. * The historic 1896 McIntosh opera House was a primary element in the Main Street commercial district. It served as an opera house, lodge meeting hall, ball room, theater, and was the pride of Kalispell at the time. Discover Kalispell will continue to work with the property owners, the City of Kalispell and other local stakeholders to assess the feasibility to restore the space as a unique event venue to compliment the historic downtown. Challenges Although the area's tourism industry is making strides in smoothing out the hotel occupancy levels between the height of summer and quiet of November and April, seasonality continues to be a challenge. The seasonality creates work force issues both due to a shortage of qualified workers in the summer and ability to maintain adequate staffing levels during the fluctuating shoulder and winter months. • Climate change is affecting our weather, stream flows, water temperature and forests. weather conditions that are deviating from historical patterns are posing a challenge for tourism in northwest Montana. Our area relies heavily on predictable water and air temperatures and appropriate levels of precipitation for winter activities, events, and to avoid summer wildfires. • The Flathead Malley will see an increase of 325 new guest rooms during the summer of 2016. That is a significant amount of new inventory to absorb outside of the summer busy season. • Alberta has been the number one residency for visitations into northwest Montana over the past several years, and as a key component of our drive market visitations during months outside the busy summer season. With the current state of the Canadian economy and fluctuation of the dollar, Flathead County has seen a significant decrease in visitations from Alberta. The Alberta economy is predicted to see a modest recovery of 0.09% during 2016. • Costs and availability of air travel continue to be a barrier for Kalispell to effectively increase visitations from some geographic and psychographic markets. There is a local effort in place to capture more direct flights (Glacier AERO). New markets actualized to date include seasonal flights to Chicago, Portland, and Los Angeles. The lack of public transportation throughout the Flathead Valley as well as from Kalispell to Glacier Park impacts certain visitors including the international traveler. Kalispell Chamber of Comm erce/Convention & Visitor Bureau -- FY'17 Marketing Plan P a g e i 6 The traditional lodging properties in Kalispell have begun to feel the impacts of the increasing popularity of VRBo, Airbnb and other shared economies. There has been a measurable decrease in room night stays by teams attending signature events and an obvious increase of businesses utilizing space within the historic downtown buildings to create rental space that doesn't fit within the room requirement structure for TBID. As the shared economy options grow and shift it is crucial that Montana Department of Revenue and local municipalities ensure proper taxes are collected. Kalispell is Discovery In Every Direction Kalispell Glacier National Bark - 327 m ll es i. r y Hungry Horse Reservoir - 47 miles. Jewel Basin Hiking A ea - 28 miles Kalispell sites in a galley where one national park, two national forests, and one wilderness area converge. Discover unlimited possibilities in and around this charming small town. Kalispell Chamber of Commerce/Convention & Visitor Bureau - F 1`17 Marketing Plan 1 7 The Travel Decision Process The Inspiration phase is one in which the traveler is made aware of the general product and develops a desire to visit the destination. Discover Kalispell's marketing plan and initiatives leverage the Montana brand awareness achieved by the Montana office of Tourism and Business Development (MOTBD) then connects with our target markets to provide inspiration about our destination through compelling imagery, engaging text and strong incentives to travel. Potential visitors connect with Kalispell's iconic natural resources (Glacier National Park and Flathead Lake' while gaining a sense of the welcoming small town and lifestyle. It's important to connect with those that already love you and talk about you, which includes the locals, as they can be your best spokespersons. That's where social media plays an important role. The media used during this stage is DiscoverKalispell.com, print and online advertising, video, social media, emarketing, collateral, travel shows, signature events and publicity. In the orientation phase travelers begin to figure out the details of the trip. This phase focuses on the route the traveler will take, stops to make along the way, and what activities and attractions best fit their lifestyle and travel group. Media used to help orient the visitors to the offerings of our destination include DiscoverKalispell.com, Trip Advisor, social media channels, online advertising that points to associated landing pages, print collateral, PR, and emarketing targeted to specific interests and other demographic factors. At this stage we offer suggested day trips and tours, informative articles on the website, consumer reviews, and niche brochures such as Brews, wines and Spirits. In the Facilitation phase travelers drill down and select specific activities and make reservations for transportation, lodging and activities. This would include day trips and tours outside of the primary trip purpose (i.e. Glacier Park vacation: what are other activities for activities outside of the park) and group activities. The resources Kalispell provides to the visitor at this phase of the planning cycle is DiscoverKalispell.com — including responsive web design, event listings, lodging packages, the visitor information center, wayfinding signage, maps, lodging packages, and Trip Advisor for dining and event reviews and recommendations. Discover Kalispell's Key Markets Primary Market -Leisure/Consumer Travel The leisure market for Kalispell is active matures and young families that are looking for affordable variety and a bit of culture and shopping with their outdoor -centered vacation. The first time visitor is primarily here for Glacier National Park, and specifically to experience the Going To The Sun Road. Travelers 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 museums and downtown events. Kalispell also supports a strong business and group market. Kalispell Chamber of Commerce/Convention & Visitor Bureau - FY'17 Marketing Plan 1 8 Visitors from Canada come to Kalispell for signature events, golf, winter activities, shopping, and medical tourism. They enjoy the traditions such as Moose's Saloon, Western outdoors, and a black Friday weekend getaway as well as hockey, baseball, soccer and other sports tournaments. We are seeing an increasing number of young families visiting from Canada to enjoy the variety of kid -friendly activities offered in Kalispell. This has been stimulated by hosting press trips of journalists that write for family - centered media outlets in Canada. Top non-resident activities while in Kalispell: (Source: 2015 ITRR Nonresident visitor study for Kalispell) 63°r scenic driving 45% nature photography 41% day hiking 37% wildlife watching 35% recreational shopping Demographic: Drive market; 35-64 years old — average age 57; household income $100k to less than $150k; couples and younger families. Geographic: Drive Market: Washington (Spokane area, Seattle); Portland, Oregon; Northern Idaho (Coeur d'Alene, Banners Ferry); Alberta (Calgary and surrounding area, Lethbridge, Edmonton); British Columbia (Cranbrook, Fernie/Sparwood); Montana (Helena, Great Falls, Missoula and Billings). Top residency of nonresident visitors to Kalispell Source: 2015 ITRR Nonresident visitor study for Kalispell: Source: Kalispell VIC walk-ins: Washington Alberta California California Oregon British Columbia Idaho Minnesota Colorado Washington Direct Flight Markets: Seattle, Portland, Minneapolis, Chicago Glacier Park International Airport is serviced by Delta (SLC, MSP), Alaska (SEA & PDX), United (DEN, Chicago & Atlanta (seasonal)}, Allegiant (Las Vegas and Oakland (seasonal)). Alaska and Delta had the highest enplaned market share during 2015 and the highest percentage of increase for enplanements and deplanements as compared to 2014. Kalispell Chamber of Cornmerce/Convention & Visitor Bureau -- FY'17 Marketing Plan 1 9 © ALLEGIANT o CHARTER Discover Kalispell's initiatives to support and promote direct 0.2�6 flights: o DELTA Chicago: new direct winter service is promoted through MAINLINE 211 a DELTA"' press trips and online marketing directed to the Chicago Tad SKEST 177% market between December and April. C1 ALASKA r Seattle and Portland: direct flights are promoted through HORIZON media events, press trips and advertising campaigns. 29.4 % Trip Type: Shoulder and winter seasons: extended weekend, Discover Kalispell signature events, sport tournaments, business, groups, FIT. Summer: base camp and/or pre -post stay for Glacier National Park and Flathead Lake vacations, and attendance at notable events such as The Event at Rebecca Farm. Primary Market - Groups, Meetings & Conventions Kalispell accommodates groups from 10-500 comfortability and adequately. The most common group size is from 50-120. The largest event space in our hotel properties can hold up to 880 for a reception. With twenty TRID hotels in Kalispell we can accommodate over 1,700 rooms. The two larger convention hotels can accommodate up to 280 rooms per night and have over 16,000 square feet of meeting room space; or there is plenty of nearby and affordable overflow roorns for groups. Shoulder and summer seasons (duly and August) bring in corporate and government. Group business for the shoulder seasons consist of teams, associations and state government. Summer season group business is made up of national associations, SMERF and state and federal government. Group participants are interested in outdoor activities, brewery and distillery tours and local area events. Kalispell Convention & Visitor Bureau Quarterly Occupancy Mix July August September QTR I AVG October November ❑ecem ber QTR 2 AVG Corporate 20% 20% 21 % 20°gyp 15% 25% 20% 20% Event 1 % 0% 1 % 1 % 0% 0% 0% 0% Government 3% 6% 9% 6% 5% 8% 6% 6% G roup 10% 7% 8% 8% 16% 7% 10% 11 % Tours 5% 6% 4% 5% 0% 0% 0% 0% Transient/Leisure 61 % 60% 1 57% 60% 63% 60% 65% 62% Kalispell Chamber of Commerce/Convention & Visitor Bureau - FY"17 Marketing Plan 1 10 Emerging Market — Leisure/Consumer Travel Demographic: 30-45 years old Geographic: Markets identified through our signature event participants Grooving direct flight markets: San Francisco Bay Area, Los Angeles area Tri-Cities WA, the 41h largest metropolitan area in Washington Discover Kalispell leverages the PR exposure received from the annual signature events to gain exposure in new geographical markets. Dragon Boat examples: Tacoma Washington, Portland, and Texas Pond Hockey examples: New England states, San Diego area Spartan examples: 48 states and the District of Columbia as well as four Canadian provinces attended the 2015 event Trip Type: Shoulder and winter seasons: extended weekend, 5-7 days centered around events, ski vacations, girls weekends, multi -generational groups, meetings and group travel Summer: base camp and/or pre -post stay for Glacier National Park and Flathead Lake vacations, and attendance at notable events such as The Event at Rebecca Farm Emerging Market - Groups, Meetings & Conventions Bieisure travelers are those coming for meetings and business travel while also bringing families for extended stays. They want destinations that have a strong leisure component. KCVB is working in conjunction with the event planners to market a strong message about the area activities prior to conferences. our social media channels can be used along with direct e-blast communications to the group database. The Tri-Cities consist of Kennewick, Pasco and Richland cities and make up the 4th largest metropolitan area in the state of Washington. It is considered the fastest grooving city in the United States by MSA. Major employers include top industries in healthcare, agriculture, food processing and manufacturing. Where there is growth, there is opportunity. This is a market not tapped into. Healthcare is the leading employment industry for the Flathead Valley with a 16.3% increase from last year, according to a recent Flathead Valley Economic Forecast. Kalispell Regional Healthcare is expanding services and their recruiting efforts continue to bring accomplished and experienced health care professionals from all over the world. The incentive to live in the Flathead Valley is the lifestyle. The Medical Tourism department at Kalispell Regional has been drawing business from Canada and U.S. based cities. They design medical discounted packages that include consultation, surgery and follow up. Medical concierge are the point of contact from the beginning to the time they return back home. Kalispell is considered the 41h least expensive healthcare area in the country. Discover Kalispell can leverage that message to promote Kalispell as a great breakout session for medical conferences and groups. Kalispell Chamber of Commerce/Convention Q, Visitor Bureau - FY'17 Marketing Plan P a g e 11 Supporting Research Destination Marketing —Trends for 2016 Technology platforms, devices, and the latest trends continually change. what hasn't changed over the past few years is that travel marketing is closely tied to online searches. The internet provides a platform for a destination to connect, create relationships and incentivize conversion within small moments of time along a traveler's journey. What is evolving is the necessity for refining your online footprint. It is no longer an option for a travel brand. Your online presence impacts your ability to connect with consumers. A destination has to convey an image of trust, reputation and authority in order for Google to consider your website when it presents pages and sites to a traveler. Dreaming, planning, booking and experiencing. These are the moments of a traveler's journey. Google states that 37% of travelers in the U.S. think about vacation planning once a month; 17% think about it at least once a week. Those people want information at their fingertips — on their mobile devices. Two of the top questions travelers type into Google about travel are "What to do in (destination)" and `fWhere is (destination). Once on the ground a visitor's mobile search behavior is about making sense of the unfamiliar with many searches including the phrase "near me". A destination needs to be there for those moments. Content — fresh, continuous and a variety — contributes to a destination's reputation. The only way to be found on the internet via search is with rich content. That content is then shared and commented -on via social media platforms. "Trust is built through demonstrating a strong brand, not trying to be all things to everyone. Be who you are and be the best you can be." (Bronwyn white, My Travel Resea rch.com ) Be mobile and nimble. The adoption of the smartphone is rising with about 2 billion consumers worldwide expected to own a smartphone in 2016. In the past year, mobile's share of travel visits has grown by 48% while conversation rates have grown 88% on mobile travel sites. (Google Travel Trends, Nov 2015 and Lynan Saperstein, Experience Experts) The rise of mobile devices and the growth of the millennial generation have led to a surge of spur-of-the-moment trips. In the upcoming year, 73% of Millennials plan on taking a last-minute trip, as do 58% of the total respondents. (Boxever) Today's Traveler A study by Upshot, Travel Quest: Budding a Travel Superbrond, states there aren't many differences among Boomers, Gen Xers, Millennials, Gen Zers, road warriors or vacationers — at least not when it comes to how they travel. "Distinctions have blurred as today's travelers fluidly shift between mindsets depending on their immediate circumstances." The study surveyed 500 frequent travelers (having taken three or more trips a year) with equal representation of generations as well as an equal number of business and leisure travelers. what they found was that they all share similar patterns in "mindsets" or travel values. Mindsets are about finding opportunities for cultural immersion, escaping the everyday, enabling spontaneity and having a hassle - free experience. Miilenials are the biggest group currently in terms of numbers (75.3 million in the U.S Kalispell Chamber of Commerce/Convention & Visitor Bureau - FY'17 Marketing Plan tl g e 12 in 2015 according to Pew Research Center) but if destinations overly focus on Millennials they may be missing out on those who are actually doing the most traveling and spending the most on these travels in the present. The highest -spending group for both domestic and international travel among Upshot's respondents was the Boomers: 28.5% spent more than $1,000 on last domestic trips and 11.7% spent more than $5,000 on last international trip. The most important thing to remember, as we're developing our marketing campaigns and messaging, is to not get caught up in definitions or categories or traveler types. "All travelers as a whole, regardless of age or travel type (business or leisure) are looking for a unique, authentic, personalized, seamless travel experience that is culturally immersive and offers local, human connections." (A Radical Thought: Do Millennials Really View Travel Differently? 5kift, Mar 21, 2016) The Shared Economy The sharing economy began as a niche sector but has blossomed into a whole industry with over 9,000 companies according to Mesh, a directory for the sharing economy. Advocates claim that the sharing economy is creating a stronger sense of community and breaking down the distinction between companies and customers with peer -to -peer models. What is also known is this trend is impacting traditional travel brands like hotels and motels. Researchers at Boston University estimated that every 10 percent rise in Airbnb supply in Texas caused a 0.35 percent drop in monthly hotel revenue — equivalent to a fall in revenue of over 13 percent in Austin. They also found hotels had cut their room rates as a result of pressure from the lower peer -to -peer prices appealing to cash -conscious consumers (The New Economy, Apr 13, 2015). Traditional hotels and motels are the mainstay for the collection of the bed tax and TBID funds in Montana. The Department of Revenue, local municipalities, and DMO's need to be aware of this growing trend and find ways to monitor, adapt and evolve. Media Trends Broadcast marketing and reach -frequency models are becoming increasingly inadequate for brand engagement. Travel is emotional so consumers are eager to engage in dialogue. Messaging — real time, and two-way channels like Twitter, enable destinations to engage in conversations. "In the Post-App Economy, travel brands must be able to adeptly engage with their customers in conversations across channels. And to effectively capture customer attention today, marketers must stop shouting and start engaging." (How Travel Marketers Can Be Heard, Skift, Feb. 29, 2016) Videos influences travel decisions. Auto playing video content on Facebook and Instagram is catching the attention of consumers thinking about travel. As of November 2015, Facebook was serving 8 billion video views per day, which is double the rate from April of the same year. Engagement on video tends to be higher in general. (Skift, Feb. 26, 2016) In 2014, subscriptions to top travel channels on You Tube increased over 100% YOY and those subscribers watched 86°% longer per view than nonsubscribers (YouTube data, 2013 and 2014). Travel vlogs receive 4x more social engagement than other types of travel content on You Tube (Google, Travel Content Takes Off on You Tube, August 2014). Photos are a big part of travel marketing so Instagram has growing potential to reach consumers during each phase of the travel process. But the platform isn't just about increasing likes and followers, the Kalispell chamber of Commerce/Convention & Visitor Bureau - FY`17 Marketing Plan P a g e 113 goal is to grow and engage your audience to help guide them from aspiring traveler to an actual traveler. (Adventure Travel News, Katie Hardin) Location -based technology targets consumers at the initial point of engagement and serves up content relevant to their interests at that moment. Mobile marketing's rise has prompted more consumers to opt in to location -based deals. Destinations can leverage this trend for highly targeted promotions which provide a high return on investment. (Luxury Daily, Jan 11, 2016) Wherever travelers go in 2015 they'll be using social media to discover, plan and share. social media is decreasing the gap between someone searching to find where to buy and the destination serving up the appropriate content with new buttons such as Buy, Learn More, and Book. It is important to pay attention to hashtags and current social trends and find ways through social media channels to educate your audience with key pieces of information. This will help to set a destination apart. (Adventure Travel News, Katie Hardin) Local Goods and Services The promotion of local products and services increases the amount spent by nonresident travelers. ITRR's report titled The Importance of Traveler Spending on Locally Produced Goods & Services, shows that 16% of travelers purchased locally -made products or services and spent nearly $184 more than the traveler who did not spend on those products. Visitors who purchased local products and services stayed, on average, 4.39 nights longer than those who did not purchase locally. The geotraveler has a higher spending level than other travelers because they seek to sustain and enhance the local geographical character of place and as such, buy local products. One of the goals in this FY17 marketing plan is to enhance the promotion of the flavor of our community. Agriculture is a deeply rooted tradition in the Flathead Valley and spending time in Kalispell means becoming intimately familiar with the local flavors through local products on menus at restaurants, Flathead Cherries, wild huckleberries and a variety of farm -to -table activities for visitors and groups. Group Activities Agritourism activities are gaining popularity for both visitors and farmers. This is due to the increased interest in where our food is coming from, process method and the unique experiences for visitors to be up close and personal on the farm. For the farmers, it allows added revenue to help keep their farm viable and diversify their income. (Local-Food-Tours.com) Association memberships are seeking to maximize their learning while attending unique meeting destinations by utilizing area businesses for off -site events and tours. Professional events (EduTour) were created and merged by Visit Detroit. They take real learning experiences and satisfy attendee demand for unique travel opportunities. The EduToursare similar to school field trips to specific industry businesses to see behind the scenes of how the operation works or just visit with the management and have a Q and A. Groups see this value and it differentiates Visit Detroit and supports the association attendees' educational mission at the same time. (Skift--September 22, 2015 - Detroit Tourism Turns To Local Industry Leaders to Help Lure Conventions) Kalispell Chamber of Commerce/Convention & Visitor Bureau - FY'17 Marketing Plan P a g e :14 UMQ's and CVB's are putting a more concentrated effort on selling the attendee a destination experience. (CVENT Blog—July 1, 2015) Meetings -Groups -Business Travel With many U.S. travelers taking minimal vacation time, the thought of a business trip involving family members is the only soft spot some people can find. 54/ of business travelers who take business trips involving leisure bring their family members along, according to data from a Bridge Street survey, which included respondents from all corners of the world. (Skift-September 24, 2015 — Resorts tap into bleisure trend to combine business and family travel) "Many organizations still see meetings as a cost center, or a hospitality expense, rather than an investment in strategic development", MacMillan told Skift. So meeting professionals are now turning to DMOs as a source to help grow their revenue. They're requesting financial incentives and subsidies, more marketing support to boost attendance, and more help to secure sponsorship in the destination to drive a meeting's overall business performance. Also, survey respondents reported that the two most appealing selling points for a potential meeting destination were the availability of financial incentives and broad meeting industry collaboration. (Skiff --January 18, 2016 — Meeting planners are relying more on tourism bureaus). r .r Kalispell Chamber of Commerce/Convention & Visitor Bureau - FY'17 Marketing Plan P a g e 15 Marketing Plan Goals and Objectives Goals 1. Increase awareness of Kalispell as a travel destination to expanded markets and audiences. 2. Build relationships with visitors as demonstrated through increased usage and engagement with our key platforms. 3. Grow winter and shoulder season visitations. 4. Diversify the promotion of Kalispell's amenities to decrease an over -reliance on activities that can be affected by climate conditions. 5. Provide sponsorships to events and sports tournaments that have growth potential during the shoulder and winter seasons. 6. Connect with active meeting planners in drive market and regional areas. 7. Promote Kalispell as a meeting destination to local businesses and organizations. 8. Play an active role as a voice for tourism in the state and the community through positive publicity and outreach. Objectives 1. Consumer Travel a. Increase total unique visitors to website by 10% over FY"10. b. Increase new sessions to website from mobile devices by 15% (avg. of mobile & tablet). c. Increase occupancy at TBID hotels between November to April by 2/0 (as measured by STR). d. Generate 0 media stories in target markets through public relations efforts. e. Increase total social media reach by 5% over FV16. f. Create 2 campaigns that enhance local agricultural products. 2. Events and Sports Tournaments a. Successfully produce established signature events: on budget and with increased economic impact to community. b. Establish sponsorship for two other events or sports tournaments that have long term growth potential during off-season. 3. Meetings & Conventions a. Build a 200 member database of qualified and interested meeting planners. b. Retain engagement of meeting planner database through quarterly newsletters. c. Establish a comprehensive group activity and teambuilding list. d. Create meeting referral program for local businesses and organizations. e. Attend 2 regional tradeshows to promote Kalispell as a meeting destination. f. Create 3 informational handouts for group planners. Kalispell Chamber of Commerce/Convention & Visitor Bureau - FY'17 Marketing Plan P a P e 1 16 Discover Kalispell's Cooperative Marketing Past Cooperative Marketing Efforts Discover Kalispell participated in MoTBD co-op programs between FY'10 and FY'15. we focused our participation to winter and spring online campaigns. For the most part the campaigns demonstrated success as measured by impressions, CTR and clicks to website. we did not choose to participate in MoTBD co-ops during FY'16 and are not anticipating participation during FY'17 due to issues we encountered with ad development and scheduling and receiving adequate and timely reporting. Discover Kalispell is open to reevaluating the co-ops as they become available and reengaging with MoTBD. Discover Kalispell works cooperatively with the PR and Group Travel departments of MoTBD and Glacier Country to assist with hosting press trips and participating in media events held in Seattle, Portland and San Francisco. For the group travel, meetings and conventions segment, Discover Kalispell participates in FAM trips and meeting planner shows such as iMEX. we also appreciate the cooperation and sharing that occurs with photos and videos between Discover Kalispell and MoTBD and the Film office. In our local market Discover Kalispell works closely with our partners at Glacier National Park, Flathead Forest Service, Associated Chambers of Flathead Valley, Kalispell Downtown Association and Business Improvement District, Montana Vilest Economic Development, Flathead County Parks and Recreation and Fairgrounds, Kalispell Parks and Recreation, and Montana State Parks. we also collaborate as applicable with Explore Whitefish (wCVB). Anticipated FY 2017 Cooperative Marketing Discover Kalispell is planning several cooperative initiatives with Glacier Country such as media events in Seattle, Portland, and San Francisco, and consumer -based and group travel -based press trips and FAMS. The National Park Centennial provides unique opportunities for increased visitation as well as concerns of potential issues due to overcrowding and wildfires. Discover Kalispell will continue to work closely with the staff at GNP, Glacier Country and whitefish CVB to develop crisis management plans and PR. As a group we are also providing information and collateral for Glacier Park's staff training to help educate their staff on other activities and opportunities in the Flathead Valley to provide to Park visitors during peak traffic and congestion times. Discover Kalispell will monitor and analyze MoTBD partnership opportunities as they become available. Kalispell Chamber of Commerce/Convention & Visitor Bureau - FY'17 Marketing Plan P a g e 117 !�r• .,l'! L :A �t.G r'� ~S �"L,: _•��_ r��. .`I�' 4� 'till -F,7^fir . _ 7 i r w• - Vo w- ,P � r adiz' -• �'.��� rh u rrr �1K �T•,f ! .x.�t. -1* 11L. !''. •�► ,f [r ?ti3 .. .. 1 - r V7 pk Op ,�,�� ' � • ��i AMP - � • - ,� F - ' ,F.-` f - f '• ' � � '� # � ti rJ '' �,•�� fib • hF `.Ly Fir-- • . 'r r ■ .y .��� 4 . .+r •L _ r i „ _ 1 y �Y '�'Yr err � .w"�r�� •.r •- KCVB Combined Budgets FY'17 TBID Projected Revenue $ 525,000 Bed Tax Projected Revenue $ 124,000 FY'16 Carryover $ 49,000 FY'15 Carryover $ 6,000 Total $ 574,000 Total $ 130,000 Program Description Program Program Project Total Project Total Administration * $27,250 $21,600 Staffing - Wages, Employer Expenses $227,000 Staff employer expenses (VIC) $15,000 Director, Group Sales Mgr, Admin Asst) Marketing Support $8,500 $36,000 Smith Travel Reports $5,500 Memberships & Education $3,000 TAC/Gov Conf $1,000 VIC Staff - year round $25,000 seasonal $4,000 Opportunity $5,000 Outreach $1,000 We bsite $18,000 $ - Maintenance and enhancernents SEO & SEM Fulfillment $ $4,350 phone (800 line) $100 postage $4, 000 supplies $250 Consumer Marketing $8 750 $38,050 Photo and video library $5,000 Photo and video library $3,000 Social Media admin & advertising $12,000 Social Media admin & adv $7,500 Creative services $20,000 Media buy: print and online $30,000 Online Advertising $14,000 Print Advertising $10,000 Travel show attendance $2,500 Travel show attendance $1,550 Trade show booth $1,500 Airport displays $750 EMarketing $5,000 Visitor guide and niche brochures $10,000 Printed Materials $2,000 Kalispell Chamber of Commerce/Convention & Visitor Bureau - FY'17 Marketing Plan P a g e 1191 Events and Sports -Operations and Promotion $118,500 Dragon Boat Festival $30,000 Spartan Race $23,000 Pond Hockey $30,000 Other event & sports sponsorships $14,500 Event Operations Management $21,000 Groups and M&C $58,000 Meeting Planner Shows $10,000 Meeting Planner FAM $12,000 Meeting planner incentive program $15,000 Group photo and video library $6,000 M&Cguide $7,000 Customer Relationship Mgmt Syste m $ 6, 000 M&C memberships $1,000 Sales calls $1,000 Publicity $30,000 Travel media press trips/FAM $13,000 Proactive & reactive PR $16,000 Kalispell branded merchandise $1,000 TOTAL $ 574,000 Event Promotion - Press/media $3,000 Event Promotion - Printed Adv $30000 Event Promotion - Radio/TV $3,000 Event Promotion - Social Media $3,000 Event Promotion - Electronic $3,000 Online Digital Advertising $5,000 Group Marketing Personnel $10,000 TOTAL $15,000 $15,000 $ 130,000 *Administration includes bookkeeping, rent, office supplies, postage & copies, tech support, equipment & furniture, phone, audit Kalispell Chamber of Commerce/Convention of Visitor Bureau - FY`17 Marketing Plan Page 120 Bed Tax - Total budget = $130,000 83°/ of total allocated to marketing — marketing support, consumer, event, group, fulfillment Fulfillment Croup Marketing Event Marketing Consu mE { Marketir Administration Jpport TBI D - Total budget = $574,000 50% of total allocated to marketing — marketing support, website, consumer, events & sports, M&C, publicity Publicity Meeting & Conventions Events & Sports Con! Mar Staffing & Operations LWebsite Ling Support Kalispell Chamber of Commerce/Convention, & Visitor Bureau - FY'17 Marketing Plan P �-4 g e 1 21 Combined Budgets — Bed Tax and TBID Total budget = $704,000 Website Publicity row Group, M Marketing Support Event Promot and ❑p eram Kalispell Chamber of Commerce/Convention & visitor Bureau - FY'17 Marketing Plan P a g e .I Z2 Marketing Segments and Methods Consumer The consumer -facing campaigns are divided into late-fall/winter and spring/summer campaigns with approximately 60 of the budget directed at fall/winter. Each campaign is designed to highlight the unique activities available in Kalispell and the surrounding area. Primary media includes social platforms, online ads, content amplification, location based advertising, and print ads with accompanying editorial. The marketing initiatives are not directed at the busy July -August summer season when occupancy levels at hotels is near capacity. It is important to note that when crisis management is needed (example: local wildfires)the PR and opportunity funds are directed at managing that process. Method Description Rationale Supporting Research Measure Success Photo/video library Secure new photos & Images play an important Images touch a traveler Imagery is a branding videos that support the PR, role in promoting a during each phase of the tool. Effectiveness social media & advertising. destination and engaging decision process through would be gauged with potential visitors. social media, online adv., through social media and mobile marketing. insights. Social media Update and manage social Majority of travelers (all wherever travelers go in Increased level of media sites that foster demographics) use social 2016 they use social media engagement; increase consumer engagement and media to connect with to discover, plan and share. total reach by 5%. enhance cross platform sphere and share travel (Adventure Travel News, consistency. Facebook, experiences and get Katie Hardin) Twitter, Instagram and You consumer reviews. Tube. Online and print Creative services and media Online adv. enables a Online adv. has measurable Online adv.: number of advertising buy for online ads, location destination to reach ROI and drives shares and impressions and CTR. marketing, social media targeted consumers and referrals. A targeted Print adv.: supports advertising and targeted connect them with website approach with print adv. the overall brand print publications. and other platforms. provides ability to choose awareness. Lifestyle print publications editorial subjects to deliver speak to specific highly targeted content to geographic and an already engaged psychographic markets audience. (INMA RO1 Study, and are effective in Marketingland.com) building brand awareness. Travel show attendance Kalispell will attend at least It is an economical way to Travel shows allow us to Number of brochures two consumer travel shows connect directly with connect with a target distributed and opt -in during FY17_ consumers interested in market to grow off-peak subscribers collected. our destination. One -on- visitations. one conversations allow us to create a strong inspiration to move the interested traveler into the orientation phase of trip planning. ENewsletters Send quarterly newsletters Emarketing enables us to 91% of U.S. adults like to Open rate, CTR and to consumer database. keep database engaged receive promotional emails unsubscribe rate. with our destination and from companies they do provide specific incentives business with. and information for trip (Marketing5herpa, 2015) planning. Visitor Guide & printed Design and production of Annual travel guides serves Through fulfillment Used in conjunction collateral annual travel guide, locator as fulfillment piece for VIC requests and distribution of with our website for map and niche brochures. and is requested by guides at targeted racks, brand awareness. thousands of potential and travel shows we are Number of fulfilment Kalispell Chamber of Commerce/Convention & Visitor Bureau - FY'17 Marketing Plan r' a gi e 23 visitors each year. The able to engage with requests are Kalispell tear -off map is a potential visitors and lead measured. popular item and includes them to website and social area map and detailed channels to learn more. Kalispell map that Niche brochures play a role identifies locations of such as as suggested hotels. itineraries to incentivize travel. Events and Sports Discover Kalispell's signature events are designed as destination events that impact visitations during specific months of the year. The events are created with our target geographic markets in mind and comprise an activity that is already popular in Canada and United States. The PR received through the events creates awareness of Kalispell in markets we could not otherwise afford to be in. Many participants select to attend our events because a) they are already interested in the sport, and b) it provides a reason to visit Montana which has always been on their bucket list. Discover Kalispell also provides grants to new or existing sports tournaments and events that show ability to create significant out of market participation during shoulder and winter months. TBID funds are used for event operations, promotion and sponsorships. Bed tax funds are used for promotion of signature events only. Method Description Rationale Supporting Research Measure Success Event promotion — Story pitches and press Connect with markets that Part of event brand press/media releases announcing event have existing teams/ awareness, measured in target markets to solicit participants to increase by registrations and teams and promote teams event awareness. spectator volume. coming to our events through hometown media. Event promotion — printed Print ads run in target Connect with markets that Part of event brand advertising markets that promote the have existing teams/ awareness, measured event to solicit registrations participants to increase by registrations and and spectators. event awareness. spectator volume. Event promotion — Broadcast coverage to Increase awareness of Part of event brand radio/tv promote event and solicit event and promote awareness, measured registrations and economic impact. by registrations and spectators. Communicate event spectator volume. details and key communication messages. Event promotion — social Social media advertising to Economical and targeted Part of event brand media promote event and solicit approach to promote awareness, measured registrations and event registrations. by registrations and spectators. spectator volume. Event promotion - Online advertising including Connect with markets that Part of event brand electronic video promos and have existing teams/ awareness, measured emarketing to promote participants to increase by registrations and event and solicit event awareness. spectator volume. registrations and spectators. Groups and M&C Shoulder season months will continue to be the focus for new meeting opportunities (any months outside of July and August). Ideal group size is between 50-120 for individual properties and up to 500 Kalispell Chamber of Commerce/Convention & Visitor Bureau - FY'17 Marketing Plan 1 24 for citywide conferences. We will be creative in offering incentives for groups that meet in the shoulder season and in more than one hotel property. Discover Kalispell will continue to meet as many planners face-to-face with appointment based tradeshows, inviting them to Kalispell for a first-hand look at how we provide professional services and offer a variety of group activities from the adventure seekers to the historians. Visiting with our local business community members will be significant in our search for potential conferences. Many of our Kalispell leaders sit on national, regional and state boards as well as belong to various organizations, both professional and social. Developing "out of the ordinary" group activities will help to sell Kalispell as a meeting destination and provide a unique experience for attendees. With so many recreational, business and educational opportunities we will continue to build a comprehensive list to sell the experience. DescriptionMethod Rationale ■ Research Supportingsso, ■r r Measure Tradeshow attendance Attend 2 appointment based Appointment based shows Meeting and event Number of qualified shows. Continue to Partner allow interested planners professionals worldwide leads and RFP's. with Glacier Country and to learn more about have said for years there is Montana CVB's for 1MEx. destinations. Partnering still no better way to with other tourism entities network than face to face for larger shows to help meetings with those in your with costs and build the field. (Fast Future Research - Montana brand as a Convention 2020 survey) meeting destination. Meeting Planner FAM Identify and invite meetings Showcase Kalispell and let They provide many benefits Increase our database planners with an interest in planners experience first- for event planners. It is a with qualified planners our area and that qualify for hand the quality of quick way to learn specific for future our specific meeting criteria. meeting facilities and all destinations, new venues, opportunities. that our area has to offer and excursions that are of to their group. value to clients. (Event Planning—blog from CVENT) Meeting Incentive Provide incentives / organizations are reaching organizations are not Through participation Program sponsorships to groups out to CVB's/DMo for increasing budgets but rate and booked during our shoulder seasons promotion & financial planners are feeling the business. months and need times. assistance and resources. pressure to produce the Use these to provide same results with less attractive alternate dates. resources. (Skift 1/18/16) Group photo & Video Continue to add quality Have a variety of Content marketing boost Part of brand Library group photos and order new professional imagery that brand visibility and awareness. pull up meeting displays. promotes Kalispell as a enhances the organizations' meeting destination. Use online presence to ensure images in quarterly group that you can connect with a newsletters, website and larger consumer base. collateral. Promote at (Blue -The Importance of local conferences and imagery in your content events. marketing strategy) M & C Memberships Join associations or Utilize membership lists Maximize benefits by Increase database. organizations that have local for emails and newsletters joining organizations. community ties. to promote Kalispell as a Includes: database, meeting destination. networking, sponsorship exhibit opportunities, and promotional emails to members. Kalispell Chamber of Commerce/Convention & Visitor Bureau - FY'17 Marketing Plan P a g e 1. 25 Sales Calls Appointment based safes Members of local business Personally asking for Number of qualified calls to local community and community sit on state, referrals during local leads and RFP's. drive market. Focus on regional and national business calls has resulted corporate, association, social boards & belong to various in a booked conference and group business and ❑ur organizations. Utilize their RFP's. signature events for groups_ buy -in to promote Kalispell. Leverage our valley events to encourage out of area participation. Lead Generating Service Maximize all resources and Empowermint is part of Empowermint provides a Number of qualified opportunities to access DMAI and offers leads to database of information on leads and increase our quality leads specific to our their members. This gives organizations and meetings database. area. Utilize industry us the chance to research and events and training research to assist us in and target a qualified specifically for CVB's and building our database. meeting that fits Kalispell. DMO's. You will find demographics, preferences and histories of those meetings. (Empowermint.com) Publicity Publicity and public relations methods include creation of story pitches which are sent to targeted media based on editorial calendars, used on DiscoverKalispell.com, press room and quarterly enewsletters. Discover Kalispell participates in opportunities that become available such as the NPS centennial and travel platforms that offer exposure where we can control content. The publicity method also includes travel media and influencer press trips in fall, winter and spring and participation in media events in target markets. Discover Kalispell purchases branded items to provide to travel media, influencers and used for contest prizes. Method Description Rationale Supporting Research Measure Success Travel media press Host top producing Educate travel writers and Earned media is the most Generate six media trips/FAM journalists to promote their readership of our trusted and influential stories in target experiences in shoulder and destination and its source of commercial markets that promote winter months that are proximity to Glacier Park information and holds 3 of shoulder and winter unique to Kalispell and the and the unique activities the top 4 spots of most travel to Kalispell and Valley and promote our offered. trusted sources. (Conductor area. charming small town and Spotlight, Nielsen Studies) amenities. Proactive and reactive PR Editorial calendar research, Identify editorial PR can have a positive ROI Part of brand response to specific opportunities relevant to by improving brand equity, awareness strategy ❑pportunities and requests, our destination, the value of a brand, and integrity. Als❑ maximize the Discover handle and dissipate measured as part of Kalispell pressroom. negative situations and the earned media natural disasters_ (Russell received. H uebsch, Demand Media) Kalispell branded Discover Kalispell purchases Branded merchandise Part of the brand merchandise branded merchandise for distributed to targeted awareness strategy. promotional purposes. individuals helps to sustain and build interest in our destination. Kalispell Chamber of Commerce/Convention & Visitor Bureau - F'T'17 Marketing Plan P t-, � e 126 �: �15�C6J$IR�.i��s�lillrn, t[111i1=1rl 91 is6es ds-.COvv+k ilrsguJ4mWItOna Winter r ir. M Elre Northern Rockies -rMagiarsPlh umvnl it :i1-bud : i] ..cL.�r#C�Rbpcu x[fyCys sfy11 OSsrIMIChAfski SOgrr IA caWbihnnk (Koflv01191 Caf€ygurI r .m,-p ;I%.,I jrxsT l�i91 rrsr� W(Ti1t to OaCk' # alisp 1 Disear►er Kallspoil 1 . Need to host 3 -group ►+conference or meeting? lee ;am 5 reasons to do it in Kalispell: o►-Jy/Xn4nM Kalispell Chamber of Commerce/Convention & Visitor Bureau - FY`17 Marketing Flan 127 KCVB T BID EIAU"get s FY'17 T�ID Projected Revenue $ 5250000 EY'16 Carryover $ 49,000 Total 574,000 Program Description Administration Staging Operations Marketing Support Smith Travel Reports Memberships & Education Program Project Total $227,000 $27,250 $5,500 $5,500 $3,000 elbsite $18;000 Maintenance and enhancements SEO & SEMI Consumer Marketing $86,750 Photo and video library $5,000 Social Media admin advertising $12,000 Creative services $201000 Media buy. print and online $30,000 Travel shove attendance $2,500 Trade show booth $1,500 Airport displays $750 EMarketing $5,000 Visitor guide and niche brochures $10,000 Events and Sports -Operations and Promotion $IM500 Dragon Boat Festival $30,000 Spartan Race $23,000 Pond Hockey $30,000 Other event & sports sponsorships $14500 Event Operations Management $21,000 Groups and M&C $55,000 Meeting Planner Shows $10,000 Meeting Planner FAM $12,000 Meeting planner incentive program $15,000 Group photo and video library $6,000 M&C guide $7,000 Customer Relationship Mlgmt System $6,000 M&C memberships $1,000 Sales calls $1,000 Publicity $30,000 Travel media press trips/FAMI $13,000 Proactive & reactive PR $16,000 Kalispell branded merchandise $1,000 T CO',T A L $ 57!f 1000 TOURISM BUSINESS IMPROVEMENT DISTRICT FUND: 7855 PROJECTED FIDUCIARY RECEIPTS AND FUNDS DUE TO BEGINNING CASH 10100 CASH: Total Cash RECIEPTS 10100 Room Tax Total Receipts TOTAL AVAILABLE DUE TO 21210 Due to TBID ENDING CASH CASH: estimated ACTUAL ACTUAL BUDGET ACTUAL BUDGET FY 13114 FY 14115 FY 15116 FY 15/16 FY 16/17 $928 $0 $0 $0 $0 $928 $505,000 $0 $549>404 $0 $525,000 $0 $525,000 $0 $574,000 $50500 $5491)404 $525,000 $525,000 $574,000 $505,928 $549,404 $525,000 $525,000 $574,000 $5057928 $5491404 $525,000 $525,1000 $574,000 $0 $0 $0 $0 $0 PROGRAM DESCRIPTION The Tourism Business Improvement District is a component unit of the City of Kalispell. The City does not record revenues and expenses of the district. The funds are passed thru to the Chamber of Commerce. The Chamber is responsible for managing the funds and providing the City with financial statements. 29 KALISPELL BUSINESS IMPROVEMENT DISTRICT l r f • � � yL VV N1 I � W N tt-i"AIRSPER April 29, 2016 Kalispell city council P. o. Box 1997 Kalispell, Mt. 59903 Re: BID Budget 2016- 2017 Mayor Johnson and Members of the Council, It is with unanimous agreement that we forward to you our budget request for July 1, 2016 - June 30, 2017. This past year marked another busy year for the Kalispell Business Improvement District_ We can all be very proud of what was accomplished. During this past year we; D coordinated our fifth "Chocoiot Atfaire" to celebrate Valentine's Day in Downtown 0 continued our successful ThursdayiFest celebrations with the coordination of the Downtown Association �y welcomed many new retail and food establishments and or new owners to the district Continued the "wooden coin" program - $5.00 off a purchase of $25.00 or greater at most downtown establishments 0 Sponsored and assisted with downtown events; Taste of Kalispell, Annual Art Walk and Holiday Stroll, Christmas community Tree Lighting and caroling, First Night Flathead, Ladies Night, Pun Through History and Block Party, 001, the Glacier Rod Run 0 Maintained our part-time Ambassador to keep downtown clean and friendly Secured a $15,000 Montana Department of Commerce grant to assist with Facade Improvements within the BID district. 0 upgraded our website to be mobile friendly 0 Hosting a downtown Kalispell F acebook page and hired a team to maintain the page 0 continue to make significant upgrades to our website We will continue to work closely with the City of Kalispell, the Kalispell Downtown Association, the Tourism Business Improvement District, the Kalispell convention and Visitors Bureau, Montana West Economic Development and most importantly our downtown businesses. Know that in the coming year we will continue to pursue opportunities to improve the economic growth and prosperity of our downtown. 30 A L Renewal of the BID - See attached information sheet Continued upgrades to our website including some new pages G New and continued advertising Continue the Fo�ade Improvement program which stimulates private investment ir; the downtown The continued printing and distribution of our popular walking tour brochure Also look for these and other events in 2016 & 20 17: A Chocolat Affalre - February 3, 201 7, 5:0O -- 8:00 P Thursday.F sr - June 23 - August 25, 5:0O - 8:00 PM Taste of Kalispell -- September 8, 5:00 PM - In coordination with The Museum at Central School 8th Annuall -5CO kun ThFough History © Sunday, April 16, 2017 Annual Art Wally - Friday. December 2nd, 5:00 - 9:00 PM 4 HQ 1 -lat�� coi - Downtown Kalispell - December 315' Please accept our thanks -for consideration of our budget. New development in Downtown and ongoing business is reshaping our downtown into a true lure -work -play community. Much work, remains to be done, but downtown momentum continues. we are dedicated to finding solutions to the challenges that our businesses face and we look, for opportunities to improve our economic growth and prosperity. Sincerely, Jon Fetveit Board Chair 31 I'LROD BUDGET 201(5,, 2017 City Admin fee 4% 1 Communications 11% Staffing/Office Beautification •_. - _ -. ---:-��_=,=_.,.,_:�:��:r�_.�::�_��- 4% ,.•. �1` . e velopment D r� 59� Tourism- 4% ��� •����. ..r{� r■ is ?r . _•,u i •ram. TIC r ez-Vatlopmenq, aa CtOVAft Facade Improvement Program 0 cleaning 0 Advertising/Publications 4 Events G Insurance G Bike racks/new projects Comm' "nocafic ns Web Development & Management Social Media , on line Marketing Newsletter Cell Phone C Flowers Art 'tourism 0 Printing STAFFIING $15 7 000 $201000 $ 61000 $ 31500 $ 77526 $201000 $ 4= 000 $ 2, 400 $ 7, 800 $ 350 $ 800 $ 41350 $ 1,000 $ 6, 000 Uoordinator $30$000 RentlsuppIleslconferences/m ileage $ 51500 7Y fj.:D Q �ST 4.688 uu75\,LL PP0[­-vCOD C'-D 32 $ 721026 $ 151350 $ 51350 $ 61000 $ 35.500 $ 4,688 3a9VJIa. BUSINESS IMPROVEMENT DISTRICT FUND: 2700-490-470330 PROJECTED REVENUE AND FUND SUMMARY BEGINNING CASH 10100 CASH: Operating Total Gash REVENUES 363010 Assessments 311100 Levy 312000 Penalty & Interest 335230 Class 8 PP Reimb. 346050 Festivals 365000 Donations/Grants 371010 Interest Total Revenue TOTAL AVAILABLE EXPENSES Operating ENDING CASH CASH: Operating ACTUAL ACTUAL BUDGET ACTUAL BUDGET FY13/14 FY14/15 FY15/16 FY15/16 FY16/17 $116.1040 $77,818 $57,258 $57,258 $261;045 $116,040 $77,818 $57,258 $57,258 $26,045 $23,963 $64,084 $319 $251 $600 $16,210 $449 $23,577 $56,854 $223 $622 $0 $45397 $372 $241000 $511413 $136 $311 $0 $20,000 $250 $23,319 $5011706 $926 $643 $0 $11,970 $197 $23,500 $52,000 $100 $640 $0 $115250 $250 $105,876 $86,045 $96,110 $87,761 $87,740 $221,916 $163,863 $153,368 $145,019 $113,785 $144,098 $106,605 $148,734 $118,974 $103,388 $771>818 $573258 $4,634 $26,045 $10,397 DOWNTOWN BUSINESS IMPROVEMENT DISTRICT WAS CREATED May 17, 2004 by Resolution 4891 A adopting a budget and providing funding through a mill levy and assessment combination. 33 BUSINESS IMPROVEMENT DISTRICT FUND: 2700-490-470330 EXPENDITURE DETAIL/SUMMARY PROGRAM: STAFFING: 349 Mileage/Supplies/Conferences/ Rent 350 Contract staff - coordinator 353 Contract staff- other IMPROVEMENTS: 244 Way finding signs COMMUNICATIONS: 322 Newsletter 345 Cell Phone/Wireless 352 Web Site Development/logo 357 Social Media and On-line Marketing DEVELOPMENT ACTIVITY: 351 Development Activity: Contract services 355 Facade Improvement Program 365 Advertising/Publications 366 Sponsorship/Events 530 Insurance TOURISM: 356 Printing BEAUTIFICATION: 360 Art 364 Cleaning & Flowers 522 Administrative Transfer Total Budget ACTUAL BUDGET ACTUAL BUDGET FY14/15 FY15/16 FY15/16 FY16/17 $5,716 $5,000 $41037 $5,500 $29,700 $301.000 $29,700 $3 AO $23,192 $205000 $1 %210 $20,000 $0 $0 $0 $0 $265 $350 $350 $777 $800 $777 $800 $11642 $4,000 $1493 $200 $21,282 $5,000 $91545 $10,200 $190 $201000 $1,024 $51000 $11,575 $30,000 $24,085 $10,000 $13,069 $6,000 $6,759 $0 $25590 $3,500 $2,720 $2,000 $7,183 $71;1200 $71,526 $7,500 $0 $63L000 $1,880 $0 $0 $1,000 $1,000 $3,627 $4,000 $4,334 $4,350 $4,797 $5,884 $5,884 $4,688 $106,605 $1481>734 $118,974 $1031Y388 34