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HomeMy WebLinkAboutMinutes 04/28/1998 CALL TO ORDER: ROLL CALL: APPROVAL OF MINUTES: Proposals for Marketing of Tourism S & S Design LODGING TAX ADVISORY COMMITTEE Port Angeles, Washington April 28, 1998 Chairman Wiggins called the meeting to order at I :32 p.m. Members Present.' Councilman Glenn Wiggins, Bob Harbick, Dick Vogel, John Platt, David Morris, Randy Johnson, Bill Rinehart, Bob Grattan, and Jim Haguewood. Members Absent: Councihnan Orville Campbell and Steve Oliver. Staff Present: Contracts/Projects Administrator Smith and Clerk Upton. Public Present: Erl Hansen, Chamber of Commerce; Rick Hert, Visitor & Convention Bureau; Troy Woody, DoubleTree Hotel; Laurel Black, Visitor & Convention Bureau; Marc Heusner and Bob Simpson, Competitive Edge; Steve Baxter, S & S Design; Anne Tucker, Tom Bloom, and Cathy Wimmers, Wendt Advertising. David Morris moved to approve the minutes of the Lodging Tax Advisory Committee meeting of April 21, 1998. The motion was seconded by Dick Vogel and carried unanimously. Steve Baxter. S & S Desien: After introductions of those present, Steve Baxter ofS & S Design presented his marketing plan for the promotion of Port Angeles as the base city for those vacationing on the Olympic Peninsula. With the use of the computerized Power Point, Mr. Baxter's presentation centered around marketing with the use of technology, specifically the Internet. Using Port Angeles as the base city for tourism, Mr. Baxter envisioned a sophisticated web site which would attract visitors based on a wealth of information available, to include local business, recreational activities, maps, pictures, special features, lodging, restaurants, and the like. He suggested a travel planning guide, which would have various search capabilities attractive to those seeking specific travel opporttmities. Mr. Baxter then sununarized a vacation he took to the Florida Keys, totally researched and planned on the Internet. When asked how the City would reach those individuals not presently accessing the Internet, Mr. Baxter indicated that libraries and schools have Internet access capabilities which can be utilized by the public. Further, Mr. Baxter noted that 25-35% of all families have Internet access, and the number is growing rapidly. Mr. Baxter then sununarized the funding needs for the fIrst three years of the plan, which would require a funding connnitment of$20I,OOO. At Chainnan Wiggins' request, Mr. Baxter reviewed the means by which he would measure success. The number of E-mail hits would be indicative of the interest by the public. Further, he would work with the Chamber and the VCB in order to determine the number of visits generated by the Web Site. Mr. Baxterfelt the bottom line for measurement would be increased traffic to the area. Mr. Baxter's presentation and subsequent discussion then centered around the ratio of creation vs. management, whether this type of marketing is a proven commodity, and the demographic studies conducted on those visiting the area. Mr. Baxter emphasized that this -1- LODGING TAX ADVISORY COMMITTEE April 28, 1998 Proposals for Marketing of Tourism (Cont'd) S & S Design (Cont'd) type of marketing is so revolutionary that he felt other cities would want to become involved in similar systems. He noted he was aware of a conversion rate of 10 - 12% in 19%; the major resorts enjoy a conversion rate of 50 - 60% by marketing on the Internet. Mr. Baxter shared with the committee his joy in promoting the area and noted he has the technical expertise and skills for this type of marketing program. He looked forward to the possibility of partnership with the City. Break Chairman Wiggins recessed the meeting for a break at 2:30 p.m. The meeting reconvened at 2:40 p.m. Competitive Edge Bob Simoson & Marc Heusner. Comoetitive Edf!e: Present to submit a proposal from Competitive Edge, Bellevue, were Bob Simpson and Marc Heusner. Using overheads, they identified the issue as being one of a strategic nature in that a strategic framework should be put in place to increase business and tax revenues. Emphasis was placed on the need to look beyond tourism to the underlying business issues, i.e., placing a value on the Olympic experience, communication, as well as an identification of why people should come to the area. Competitive Edge would serve as advocates in starting/training businesses, establishing business-to-business networks, building public-private partnerships, and communicating with customers. Competitive Edge presently manages property for the City of Bellevue, and Messrs. Simpson and Heusner swrunarized their responsibilities and successes in that regard. They noted that they are entrepreneurs first and consultants second. They are directly accotllltable for revenue and are driven to create value for customers. Discussion ensued with regard to the kind of mix necessary in order to proceed with a project of this nature. Competitive Edge emphasizes media relations over advertising, and there would be focus on the need to identiJy target customers and to concentrate on meeting their needs once they are on site. Identified as critical issues were understanding the market, creating a strategic design, involving the business community, and creating accessibility to data. It was felt the program is as much of a product creation problem as it is a promotion problem. When questioned as to how they would increase tourism in the off months, Messrs. Heusner and Simpson indicated they would determine what the Europeans are doing, as they are quite sophisticated in the promotion of tourism. They would search for similar business models which have been tried and proven successful in other areas. Further, they indicated they are not tourism experts, but they could draw from others in that field to assist in this endeavor. Rather, Competitive Edge provides sound business direction and organization; they rely on the people in the industry for the knowledge. They would propose that a staff person from Competitive Edge be based here on a part-time basis to serve as a liaison and information gatherer. When asked what types of projects in which they would involve themselves initially, Messrs. Heusner and Simpson indicated they would determine where we are right now, inventory the types of things being done, determine how to package and enhance the value, evaluate the user groups, and identifY which ones have the highest potential of pay-off. It was noted that 80% of the revenues are derived from 20% of the customers, so it would behoove the City to leverage that group of customers into a larger segment. Further, they would create strategies aimed at those particular groups. They indicated that the City should not try to be all things to all people in terms of increasing tourism. Messrs. Simpson and Heusner were advised of the City's need to conduct marketing in a cohesive fashion, and the representatives of Competitive Edge advised the committee that the City may not have all of the necessary tools in place to go after the niches; they could be of assistance by helping the local businesses gain those tools and understand the more global picture. After fiuther discussion, questions, and answers, Messrs. Simpson and Heusner indicated -2 - Proposals for Marketing of Tourism (Cont'd) Competitive Edge (Cont'd) Chamber of Commerce! North Olympic Peninsula Visitor & Convention BureaulWendt Advertising LODGING TAX ADVISORY COMMITTEE April 28, 1998 this would be a tremendous opportunity. Port Angeles has tremendous assets which are underutilized, and Competitive Edge offers proven results in a strategic framework and execution. Chairman Wiggins thanked Mr. Simpson and Mr. Heusner for their proposal and interest in Port Angeles. Chamber ofCommerce/Nor/h Olvmoic Peninsula Visitor & Convention Bureau/Wendt Advertisin~: Laurel Black, President of the North Olympic Peninsula Visitor & Convention Bureau, introduced a joint proposal as submitted by the Chamber, the VCB, and Wendt Advertising. The proposal bas been developed over the last several months and is an effort to work cooperatively with other entities in the region in the promotion of tourism on the entire North Olympic Peninsula. At this time, Anne Tucker, President of Wendt Advertising, introduced staff members Tom Bloom and Cathy Winuners and noted that Wendt Advertising brings an objective viewpoint with a broad base of experience in tourism. Ms. Tucker reviewed the company's background, the sta1I's background, the company's collaborative team approach and travel and tourism expertise, as well as the creative skills available to this endeavor. Mr. Bloom reported on statistics he gathered from various sources, identifYing certain industry trends, such as: extended baby boomers are the primary target with the most discretionary income; vacations are now shorter in duration but more frequent; families are being aggressively lured by family destinations. He reviewed travel characteristics that include an average length of stay of 2 - 3 nights with an average travel party size of 2 - 3 people. The average tourist is 45+, bas a college degree or better, and an annual household income of $50,000 or more. Mr. Bloom reviewed the origin of visitors, and he indicated the majority of the visitors are from Washington to California. Wendt would choose to focus on the biggest segments first, the smaller segroents last. Within Washington, the largest number of visitors come from the Seattle area. Also reviewed were the major modes of transportation, the reasons tourists presently come to the area, and the forms of media to consider in relating the above data to conversion studies. Ms. Wimmers identified the creative strategy of the proposal by advising the committee members that it would be most helpful to involve the community in a 7 -step strategy builder. She discussed in detail the collaborative process and cited the efforts of Wendt Advertising in marketing the Cheney Cowles Museum, the Spokane Visitor & Convention Bureau, and Travel Montana. She shared with the committee TV spots used for the Cheney Cowles Museum. Ms. Wimmers noted that Port Angeles has its own personality, and Wendt will need to work with the community in identifYing motivating factors to get tourists to the area. A high quality message is extremely important, and Ms. Wimmers emphasized that Wendt is eager to get started in the interest of meeting certain deadlines for the fall shoulder season. In responding to questions from the committee members, the representatives of Wendt indicated their efforts with Travel Montana significantly increased the tourism industry for the state. They assured the committee they could make more specific information available at a later date. When asked what they would do for Port Angeles during the shoulder season, the Wend! staff members indicated it was too early in the process to specifically identifY the actions necessary. They would prefer to work with the City through this strategic process in order to get to the core ideas. They need to know the City's concerns and ideas so that they can come up with the creative approach for marketing. In response to a question as to how regional marketing efforts will get heads in beds in Port Angeles, Rick Hert indicated Port Angeles funds will be spent directly for Port Angeles marketing; however, there are opportunities to work with the other entities in stretching and leveraging the funds. Wendt Advertising felt it most important to generate an emotion in people so that they would want to return to the area. Wendt would work cooperatively with the Chamber and the VCB; Wendt brings to the arena an outside, - 3 - LODGING TAX ADVISORY COMMITTEE April 28, 1998 Proposals for Marketing of Tourism (Cont'd) creative perspective. Rick Hert indicated the group could jointly "hit the ground running" because of being able to work together. Discussion ensued with regard to the funding needs identified by this proposal, as well as the desired budgets over the next 2 - 3 years. Laurel Black informed the committee members that both the Chamber and the VCB memberships have expressed a desire that this additional 2% tax be spent solely on marketing. Wendt swnmarized the expenses that can be associated with the production of quality ads, which can be very expensive. Chamber of Commerce! North Olympic Peninsula Visitor & Convention Bureau/W endt Advertising (Cont'd) Discussion then centered around the media choices, as well as the possibilities with the Internet. A question regarding marketing mix resulted in a discussion as to how adjustments are made to marketing strategies based on studies and evaluations which are ongoing. Lengthy discussion was held with regard to the gathering of data relative to Port Angeles and how it might be refined in the future. Tim Smith addressed the possibility of County tax funds increasing relative to lodging tax dollars, and he queried as to how this might relate back to this joint endeavor. Lengthy discussion ensued with a great deal of emphasis placed on the importance of all entities, public and private, who must join forces in marketing the Peninsula. Perhaps one of the biggest hurdles will be to get everyone involved to work with each other in a spirit of cooperation for the benefit of all. Erl Hansen felt that cooperation is better now than ever before, and the Wendt staff will assist in establishing some tangible goals for everyone to work toward. Reference was made to the number of activities and events being held in the area, and it was noted that the challenge will be to put all of the pertinent materials together in an effort to get everyone to work together. Erl Hansen and Rick Hert offered commentaries pertinent to this joint effort and noted that this partnership has much to offer because of what Wendt Advertising brings to the table. In addition, with the partnerships formulated with the Cities of Sequim and Forks, it is expected that this partnership will prove to be of great benefit to everyone in terms of increasing tourism on the Peninsula. Chairman Wiggins advised the Committee members that they should plan to attend the next meeting to be held on May 5, 1998, at 1 :30 p.m., at which time the committee would rate and evaluate the proposals submitted. ADJOURNMENT: The meeting was adjourned at 5:00 p.m. , '---:~--;7-~_~?<-" Glenn Wiggins, Chair ~~~~ LJp1::w.. Becky J. Upt Ci lerk -4 -