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HomeMy WebLinkAboutMinutes 05/05/2000 CALL TO ORDER- REGULAR MEETING: ROLL CALL: Letter reo Lodging Tax from Chamber to the City LODGING TAX ADVISORY COMMITTEE Port Angeles, Washington May 5, 2000 Councilman Wiggins called the meeting of the Lodging Tax Advisory Committee to order at 2:00 p.m. Members Present: Councilman Wiggins, Councilman Campbell, Zoe Bay ton, Carol Griffith, Jim Haguewood, Patty Hannah, Bob Harbick, John McCullough, and David Morris. Members Absent: Steve Oliver and Bill Rinehart. Staff Present: Manager Quinn and Economic Development Director Smith. Others Present: Ed Hansen and Rick Hert. Letter Re. Lodging Taxfrom Chamber to the City: Councilman Wiggins referenced the letter submitted by the Chamber of Commerce Board of Directors encouraging the City to continue directing the additional 2% hotel/motel tax to the rnarketing program. It was the Chamber's position that the additional tax was supported by the lodging industry on the basis that the tax would be committed to marketing. Further, the Chamber asked that the City develop another strategy to finance a convention center. Councilman Wiggins indicated he had reviewed all of the past minutes of the Lodging Tax Advisory Committee on this particular issue, but what he found most revealing was the language in the RFP, wherein the projected budget at the onset of the prograrn was $100,000. In the end, the amount was raised to $150,000 per year for a 5-year program, for a total of $450,000-$750,000. Further, it was stated in the RFP that the available budget could be increased in accordance with the success of the program. However, lack of success could result in a reduced budget or termination of the contract. Councilman Wiggins felt this to be germaine to the discussion of this particular meeting. Discussion followed on the matter of previous discussions held, and Councilman Wiggins reviewed the City Council's position in that it did not commit to spending a fixed amount of rnoney per year on rnarketing without any oversight. Ed Hansen, Executive Director of the Chamber of Conunerce, indicated the perception in the lodging community was that the additional tax was supported solely for purposes of marketing. Lengthy debate and discussion ensued on the intentions of those involved and how the success or lack of success of the marketing program could be measured. Discussion also centered around Jim Haguewood's proposal for a convention center and a new hotel and the lodging tax as a potential funding source. Jirn supported the need for return on investment, and Rick Hert, Executive Director of the North Olympic Peninsula Visitor & Convention Bureau, recalled his efforts seven years ago to have the lodging tax increased for the primary purpose of selling more hotel rooms. He got the support oflocal hotels and motels with the idea of getting a return on their investment. Jim Haguewood felt every specific expense should be looked at, not just the marketing - 1 - LODGING TAX ADVISORY COMMITTEE May 5, 2000 Letter reo Lodging Tax from Chamber to the City (Cont'd) dollars. Rick Hert mentioned there have been long discussions about fmancing the Vem Burton Center and return on investment. Tim Smith reminded everyone that, after the second 2% tax was passed, a partnership was created between the VCB and the Chamber that did not previously exist. Report on Marketing Program Report on Marketing Program: Rick Hert and Ed Hansen distributed various documents relative to their status report on the marketing program. Ed referenced the booklet used as handouts to visitors and those requesting information on Port Angeles. He indicated the Chamber is out of the booklets, and he was hopeful approval would be forthcoming so that more could be ordered. The committee was supportive of an order being placed to replenish the supply. Ed Hansen then reviewed some of the documents distributed. He noted that the Gilmore Research Group had done a survey, highlights from which were published in the Chamber newsletter. Ed felt it noteworthy that 5S.3% of visitors spent one day or less in Port Angeles. The goal would be, therefore, to have these visitors stay longer in order to increase the revenue from the hotel/motel tax. He reviewed the Reader Response Breakdown reflecting the names of magazines in which ads were placed and the number of responses generated by those ads. Rick referred to information from Wendt Advertising setting forth the type of ad run, the name of the magazine and the date of the ad. The information packet also included pictures of the actual ads placed in the various publications. Also, enclosed was a copy of the logo, "Port Angeles - The Way to Go", inclusive of the phone number and website address. Rick reviewed the Hitometer statistics report, which is a daily breakdown of how many people visited the website. This report also gave the day of the week the site was visited, as well as the time of day. Rick distributed a guide generated by the Juan de Fuca Festival of the Arts. The Festival is also distributing SO,OOO guides in Victoria which is exciting and a great cooperative project. Tim Smith distributed a Port Angeles Room Tax Report which he and Yvonne Ziomkowski prepared. ErI stated that this report is a measure of the results of the hotel/motel tax. The goal was to increase the figure by 5% but, at the end of 1999, the figure was up by 2.54% overall. Rick pointed out that Port Angeles did quite well compared to the County and Sequim, whose figures were down. He noted that the year 2000 has been a strong one for visitors according to this report. It was reported that Wendt Advertising moved to Montana from Spokane and would like to continue the Port Angeles account, but it was determined to be too far away. It is time to look for another marketing and advertising company. Various fIrms have been contacted, and the field has been narrowed down to four fIrms, two are local and two are from out of town. Rick provided an overview of the different firms and what each one had to offer. KNCB was an outside firm that was looked at and gave a good presentation. It is planned to place rnore reference calls on the firms, and it was emphasized that decision must be made quickly as tourist season is fast approaching. Discussion followed about the selection process to choose a new marketing company and how much money should be spent with this new company. It was noted that the purpose of the Lodging Tax Committee is to measure the results of lodging tax dollars that are spent. To that end, it is important to have actual data from the lodging facilities on the number of rooms that were sold. Tim Smith reported that initially the facilities were submitting the census reports, but the number of reports have declined, which is a matter that needs to be addressed. It was noted that it is not the City's responsibility to get the establishments to report the number ofroorns sold, but it is something that rnust be accomplished. It was suggested that the Committee focus on hotels that have not been consistently -2- LODGING TAX ADVISORY COMMITTEE May 5, 2000 Report on Marketing Program (Cont'd) reporting their figures. Also, it was suggested that the three facilities represented on this committee could report as to whether their numbers are up or down. A discussion followed about how best to collect the numbers from the various hotels/motels. Tim Smith offered to combine the three hotels that reported figures on a spreadsheet and give an IS-month report that would be useful to determine "Heads in Beds". Zoe volunteered Bob Harbick, as President of the Bed & Breakfast Association, to bring the subject of reporting room counts up at the next rneeting this coming week. Another reminder letter from the City would also be helpful. Zoe noted that Becky Upton had prepared a packet and forms instructing the hotel/motels how to report room sales to the City. Councihnan Campbell inquired about a way to secure information that comes from hotels so that it does not affect thern in a detrimental way. It was suggested that only the City Clerk have access to this information. Patty Hannah inquired as to whether the room count total sold by month could be distributed to all lodging tax facilities, as well as the committee members, and the response was that this could be accomplished. Patty stressed the importance of having current information as relates to the marketing program. Further discussion ensued, and it was suggested that any letter sent to the lodging facilities emphasize the fact that, in order for the marketing program to be able to continue for another 12 months at a cost of $150,000, the City needs to have the number of rooms sold. Discussion then centered around future reports the committee might like to have as relates to the marketing program, funding for this next year's contract, and the like. Rick Hert indicated it would be most helpful if the contract were written on a calendar year basis. ADJOURNMENT: The meeting adjoumed at approximately 3: 15 p.m. ~.\.. ~Ienn Wiggins, Chair - 3 -