HomeMy WebLinkAboutCity Council Committees - Lodging Tax Advisory Committee - 02/10/2022 Pending Approval
Lodging Tax Advisory
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WA9H... Lodging Tax Advisory
Committee-Regular Meeting
Minutes
February 10, 2022
Date: February 10, 2022
Time: 4:10 p.m.
Place: Centennial South and North
Members: Bill Boyce, Chair
John Casey,
Gaila Haas, Tim Higgins,
David Kwok,
Agenda:
I. Call to Order 4:10 p.m.
II. Roll Call
Chair Boyce - Present - Remote
John Casey - Present
Tim Higgins - Present
David Kwok - Present
Gaila Haas - Present - Remote
Andrew Hutchison - Currently Expired - Present
Attendee Name Title Status Arrived
Bill Boyce Chair Present
John Casey Present
Gaila Haas Present
Tim Higgins Present
Andrew Hutchison Present
David Kwok Present
III. Agenda Approval
IV. Approval of the Minutes - October 14, 2021
Mover: David Kwok
2nd: Tim Higgins
Record to show the minutes were approved with no discussion and passed
unanimously
1. Approval of Minutes dated October 14, 2021
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Lodging Tax Advisory Committee Lodging Tax February 10, 2022
Advisory Committee-Regular Meeting Kent, Washington
Minutes
Andrew Hutchison is currently ineligible to vote due to his term expiring as of
January 14, 2022.
MOTION: Move to approve the Minutes dated October 14, 2021
RESULT: APPROVED [UNANIMOUS]
MOVER: David Kwok
SECONDER: Tim Higgins
AYES: Boyce, Casey, Haas, Higgins, Kwok
EXCUSED: Hutchison
V. Information Only - Lodging Tax Revenue Update
Shane Sorenson from Finance, presenting via Zoom, is able to provide a
preliminary figure for revenues received the last two month of 2021,
confirming that the projections for financial impacts came almost exactly
between the "high impact" and "medium impact" scenarios despite a few
strong months during the 2021 late Summer months of August and
September. 2021 Lodging Tax Revenue came in very close to $212,000.
Impact Assumptions were calculated as follows and the referenced
increase is as compared to 2020:
Low Impact: 47.3% increase in 2021 per STR and Tourism Economics
Group August 2021 Forecast
Medium Impact: 41.7% increase in 2021 per CBRE Hotels Research
September 2021 Forecast
High Impact: 29.8% increase in 2021 based on Q2 & Q3 2021 Activity.
The City will be evaluating revenue losses Citywide with an intent of
distributing ARPA dollars to mitigate those losses. From 2020 and through
2021, it is estimated that the Lodging Tax Fund has lost approximately
$300k.
VI. Business Items
A. Reappointment of Andrew Hutchison to the Lodging Tax Advisory
Committee
Andrew Hutchison's term on the Lodging Tax advisory committee has been
expired as of January 14, 2022, but he has ably served this committee since
2007. Despite efforts to recruit new qualified applicants to participate on the
committee, the small number of Kent hotels coupled with the strict
membership qualifications required by the State, have made staffing this
advisory committee particularly challenging.
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Lodging Tax Advisory Committee Lodging Tax February 10, 2022
Advisory Committee-Regular Meeting Kent, Washington
Minutes
The committee thanks Mr. Hutchison for that service, and Chair Boyce asks if
he if is willing continue as a member of the committee. Mr. Hutchison
indicates that he would like to stay on as a committee member, pending
council approval. The Economic & Community Development Committee will
vote on recommending to Council Mr. Hutchison's reappointment to the
Lodging Tax Advisory Committee at their March 14th regular meeting.
B. Jay Ray Proposal for 2022
After presenting to the committee an update and results report for activities
in 2021, Jay Ray presents to the committee a two tiered budget proposal for
2022 initiatives. The largest portion of their proposal is similar to the
program which was approved for 2021 - a keep the lights on for the existing
campaign with basic website updates and maintenance, a social media
approach geared to capturing local visitors and promotion of low risk, Covid-
safe destinations and events. In addition, Jay Ray are also proposing a test
run of an emerging trend in technology in marketing and promotion called
geo-fencing, where they use cel phone data captured in certain areas and
at certain events to target those same folks with promotions for like
locations and similar events. Demographic data can gleaned as well to
expand the circles and capture other similar people, who would be likely
to enjoy these happenings. After discussion and questions about exactly
how this works and why it isn't sinister (because cell phone users must
opt in to have their data captured), the committee agrees that it would be
interesting to find out just how powerful a tool it can be in generating
interest in Kent events and activities. The budget for these activities is
$90,000.
The 2nd tier of the proposal is to add back in a Media relations piece.
Whereby JayRay will create content, and approach media outlets which
publicize local or regional leisure destinations and activities. These efforts
would occur during what are known as the "shoulder seasons" when
travel and tourism activities tend to slow down, and the proposal requests
an additional $8,000 budget to accomplish these tasks. The Committee
agrees that this proposal is sound should proceed to council for approval.
The Economic & Community Development Committee will vote on
recommending to Council the full funding of this Grant to the City's Economic
Development team at their March 14th regular meeting.
Committee Secretary
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