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HomeMy WebLinkAboutMinutes 08/08/2000 CALL TO ORDER - REGULAR MEETING: ROLL CALL: Approval of Minutes Status Report on Tourism Marketing LODGING TAX ADVISORY COMMITTEE Port Angeles, Washington August 8, 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, Bob Harbick, and Bill Rinehart. Members Absent: Carol Griffith, Jim Haguewood, Patty Hannah, John McCullough, David Morris, and Steve Oliver. Staff Present: Economic Development Director Smith and Clerk Upton. Others Present: Rick Hert, Tony Griffith, Troy Woody, and LouAnn Yager. Approval of Minutes: Bill Rinehart moved to approve the minutes of the May 5, 2000, meeting. The motion was seconded by Councilman Campbell and carried unanimously. Status Report on Tourism Marketing: Rick Hert, North Olympic Peninsula Visitor & Convention Bureau, provided a report on lodging tax revenues for the area. For the first six months of 1999, the two counties and four jurisdictions generated $293,017 in room taxes. For the same period in 2000, the tax revenues increased to $374,640. Mr. Hert noted these figures were somewhat skewed by virtue of the fact Port Townsend did not collect the additional 2% for four of those months, and Clallam County did not collect the additional tax for two of those months. The tax increase was just under ten per cent year to date. Mr. Hert indicated he had contacted an economist in Portland to detennine the meaning of this tax increase. He was informed that, in Clallam County, every $1,000 generated in room tax equated to $69,000 in visitor spending. This was calculated on the basis of 1.45% of the tax going into destination spending. Therefore, Mr. Hert noted spending was up about $700,000 in Port Angeles year to date. He felt that marketing had a great deal to do with this increase, plus the fact there have been more special events and better weather conditions. Mr. Hert continued that, in the past, the Lodging Tax Advisory Committee has been interested in the average daily rate. Due to the lack of reporting, the City has been unable to produce a meaningful report, so the VCB and Chamber are working with a local accounting firm in an effort to produce those numbers. It is expected the report can be produced for a cost of $1,500, and Mr. Hert stressed the importance of not attributing increased tourism to tax increases. Rather, any increase should be directly related to occupancies. Lengthy discussion followed as to why lodging facilities would participate in such a study at this time when they opted not to provide the numbers prior to this. Also, the conunittee addressed its previously stated goals as relates to the desired increase in -1- LODGING TAX ADVISORY COMMITTEE August 8, 2000 Status Report on T ourisrn Marketing (Cont'd) 2001 Budget Allocation Process Next Meeting Adjournment tourism during the life of the marketing program. On the marketing effort, Mr. Hert indicated the VCB has been working with the Chamber of Commerce and Troy Woody on the new marketing plan which is being formulated by Copeland, the new advertising agency. Information was distributed to the committee members, setting forth the direction of the 2001 marketing campaign. The specifics of the campaign were reviewed by Troy Woody, and it was noted the agency will be paid by the piece. Mr. Woody indicated there will be a defimte advantage to the association with Copeland, as the agency also does work in Canada. Discussion followed with regard to the importance of Internet usage and the fact that the web page will be used more as a site of information as opposed to being used for reservation purposes. 2001 Budget Allocation Process: Tim Smith reported that the proposed allocations as recommended by the Lodging Tax Advisory Committee must be prepared by September 1. He expressed the hope that a meeting schedule could be established in order to have the necessary preparation and discussion complete by the end of August with a recommendation ready for the City Council. Lengthy discussion ensued on the process utilized by the committee for the previous budget year, the benefit of incorporating the same process for this coming year, and the funding amounts recommended to and approved by the City Council. It was agreed there has been a significant value to funding the VCBIChamber partnership in order to assist the different activities throughout the year. Rick Hert indicated he has sent letters to all of the different agencies, asking them to respond with their funding requests no later than this coming Friday. Bob H.rbick moved to proceed with the VCB/Chamber of Commerce funding ideas for the last two years to be continued on this year. The motion was seconded by Zoe Hayton. Discussion followed with regard to the synergy being developed through this partnership and the efforts to better coordinate brochures, etc., for the different events and activities. Mr. Hert indicated it may be time to wean some of the groups from the lodging tax funds. After further discussion, a vote was taken on the motion which carried unanimously. Next Meeting: Tim Smith asked the committee to set a meeting date in order to meet the September I deadline of formulating a recommendation as to the bottom line allocation. He assured the connnittee he would provide the Finance Director's estimate for 2001 revenue. It was agreed the next meeting will be held on Tuesday, August 29, 2000, at 2:00 p.m. Adjournment: The meeting adjourned at approximately 3: 1 0 p.m. ~~-r-~ ...- Glenn Wiggins, Chair A~~~ ~Jpta^- Becky J. Up ,C Clerk - 2-