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HomeMy WebLinkAboutMinutes 03/20/2001 CALL TO ORDER- REGULAR MEETING: ROLL CALL: Approval of Minutes Lodging Tax Revenue Report 2000 Marketing Campaign Status Report LODGING TAX ADVISORY COMMITTEE Port Angeles, Washington March 20, 2001 Councilman Wiggins called the meeting of the Lodging Tax Advisory Committee to order at 3:00 p.m. Members Present: Councilman Wiggins, Councilman Campbell, Zoe Bay ton, John Brewer, Carol Griffith, Jim Hagewood, and Bob Harbick. Members Absent: Patty Hannah, Steve Oliver, and Bill Rinehart. Staff Present: Economic Development Director Smith, Finance Director Ziomkowski, and Deputy City Clerk Broussard. .ilDM b<- Jack Harmon, Keith Dagg, Rick ~Russ Veenema, Daryl Vange, and Dave Morris. Others Present: Approval of Minutes: After introductions and brief discussion, Zoe Bay ton moved to approve the minutes of the December 19, 2000 meeting as written. The motion was seconded by Jim Haguewood and carried unanimously. Lodging Tax Revenue Report 2000: Finance Director Ziomkowski distributed information reflecting lodging tax revenues for the past eleven years. In 1999 and 2000, there was a growth of approximately 2.5% and 2.2%. There has been no apparent pattern visible for summer and off-season months. Mr. Smith clarified that there is a time delay of two months in receiving revenue from the State. Director Ziomkowski indicated the report is based on actual receipts from the State, and the two month delay is consistent year to year. Councilman Wiggins emphasized the purpose of the report was to see if the Marketing Campaign that commenced in July, 1998, has paid for itself. Director Ziomkowski reported on the final figures for the year, 2000, noting that the $28,000 surplus represented funding for Soroptimist, because a formal agreement has not yet been executed. These funds are to be incorporated into the 200 I budget via a budget amendment. Mr. Hagewood commended Director Ziomkowski on the presentation, and Mr. Hurt expressed appreciation for her assistance in correcting his financial records. Mr. Hurt also distributed his latest financial statement from the Department of Revenue. Mr. Haguewood asked for clarification from Director Ziomkowski on the actual budget amount. Director Ziomkowski responded that the average balance is $100,000 - 130,000, which includes the Soroptimist fund pending distribution. Marketing Campaign Status Report: Brief discussion was directed to the II % increase for the months of October and November, which Mr. Hurt felt could be attributed to marketing efforts. For the same period last year, the numbers were down. Mr. Smith noted that, during that period, there were two conventions, and Mr. Hurt felt that the numbers were a combination of marketing, sporting events, and group bookings. -1- LODGING TAX ADVISORY COMMITTEE March 20, 2001 Marketing Campaign Status Report (Con!' d) Zoe Bay ton observed that hotels and motels are more actively using the Internet in an effort to generate more business. Mr. Hurt stated that Port Angeles has seen an $8,000 increase in room tax collection from 1999. The region had an 8.26% increase in room tax due to marketing, promotion and the weather. The increase in rented rooms has also substantial. Mr. Smith noted that Port Angeles lodging taxes have been invested in marketing for the benefit of the region, the Port Angeles community, and for the investment in the VCB partnership. He queried if outlying communities, such as Sequim and Forks, were making an investment into regional marketing as well. Me. Hurt answered that there is a regional marketing group in place where money is distributed by all. In the next few weeks a $220,000 ad will commence on behalf of the region. Mr. Smith asked Mr. Hurt to summarize lodging tax dollars and other contributions obtained from Sequim and Forks, and Mr. Hurt responded that the programs in those areas are similar to Port Angeles. Mr. Veenema felt this meeting was an appropriate opportunity to discuss where the Lodging Tax Committee has been and where it is going. Councilman Campbell agreed this was a good topic to pursue upon completion of additional comments on the numbers being presented. Mr. Harbick observed he has noticed an ad for Forks in most every magazine he sees, as the Forks marketing efforts have been extensive. Mr. Smith stated that when this Committee established the goal of a cohesive marketing campaign, it was intended that others would join. Instead of a cohesive effort, there are 3-5 different marketing campaigns underway in the County. There has been some degree of cooperation, but the focus has not been on a single campaign. Lengthy discussion centered around the original goal of increasing lodging in the Port Angeles area by 5% per year. Councilman Wiggins felt that Port Angeles has yet to come close to obtaining such an increase, and it was suggested that the Committee needs to question the validity of the original goal. Mr. Hurt stated that the goal was actually for an increase of 3% per year, which was misinterpreted to be 5%. The question is what the City can do to achieve the most room nights and have the most impact on the community. Manager Quinn added that, when he reviewed the 1997 budget numbers before the additional two percent, there was $179,000 in revenue and, in 2000, the City achieved only a margin slightly more than that. He inquired as to marketing efforts prior to that time. Mr. Hurt summarized a county-wide focus program in 1995 and 1996 where he received a grant for Salmon Enhancement for $100,000, which was spent on marketing and was combined with private money. Mr. Haguewood felt that, from the Committee's standpoint and the commitment made, it is difficult to justify the investment made. Questions were raised on the matter of the financial status of restaurants; Director Ziomkowski will prepare information in this regard for the next meeting. Mr. Hurt introduced Keith Dagg from Copeland Communications, after which visuals of various ads were distributed. The Committee was informed that the ads were done in color and in black and white, and they have run in magazines and papers on various dates. Mr. Dagg went on to describe some similarities between Victoria and Port Angeles. Mr. Veenema reported that the Chamber of Commerce has received good response from packets sent out, and he commended Mr. Hurt for the great job he has done. The Chamber of Commerce website generated 79,691 hits between January and March, as compared to last year's numbers of approximately 2,000. Approximately 2% of those visiting the website requested a brochure, and 275 long distance calls have come into the Bureau in the last 80 days. Last year, from January 1, 2000 through March 20, 2000, there were 5,648 walk-ins to the Visitors Center. This year, for the same time - 2- LODGING TAX ADVISORY COMMITTEE March 20, 2001 Marketing Campaign Status Report (Cont'd) period, there have been 6,508 walk-ins. Mr. Veenema proposed that, for the next budget cycle, room tax dollars be funneled through the Chamber and not as a co-op effort. This would allow the various Chamber conunittees to become more active and, at the same time, it would allow the VCB to concentrate more fully on the Peninsula in its entirety. With a more involved Chamber of Commerce, there are more memberships involved, thus more opportunities for communication and decision making in the marketing. Mr. Hurt agreed that the process has matured, and it is reaching a point where all components need to be combined in order to achieve the best results. Mr. Veenema announced various upcoming events, such as the Kayak Symposium, Jet Ski Race, biking events, Juan de Fuca Festival, and winery tours. Lengthy discussion followed on the merits of combining marketing cycles, particularly as they relate the efforts in the area of economic development. Discussion also centered around the need for accurate figures on the number of "heads in beds", and Mr. Veenema stressed the importance of creating a means by which weekly or monthly occupancy rates can be monitored. Even with six to ten properties participating, the reading would still be beneficial. Convention Center RFP Mr. Smith introduced Daryl Vange, Ravenhurst Development, who has assisted the City with the Gateway Project. The goal is to formulate an RFP that receives a consensus in the community. Mr. Smith provided a draft RFP, which was reviewed and discussed in detail. Marketing studies have been commissioned and suggest the building could attract 40 conferences per year, involving a range of250-350 people. Mr. Vange stated that a convention center does not independently return revenue but, rather, the profits come in the form of hotel/motel, restaurant, and retail sales. The number of hotels/motels available and the remote location, would not make Port Angeles the first choice for many conferences. The City does, however, have an advantage due to the surrounding scenery that other locations lack. In order to enact this plan, more funds need to be available. The RFP points out that resources are available, and assistance is sought from the private sector. Messrs. Smith and Vange reviewed further details pertinent to the RFP, to include various attributes that should be included in the facility, location, possible barriers to success, costs, and funding resource possibilities. Discussion was held on planning and design issues, as well as the possibility of various businesses tying into the convention center. It was noted that, in order to be successful, food service is a must. After further lengthy review and discussion, Councilman Campbell urged the Committee members to provide any additional conunents, in writing, to Mr. Smith. Messrs. Smith and Vange were commended for their efforts in writing the RFP. Adjoururnent Adjournment: The meeting adjourned at 5: 13 p.m. ~~'._/ --- Glenn Wiggins, Chair - 3-