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HomeMy WebLinkAboutCity Council Committees - Lodging Tax Advisory Committee - 04/30/2004 (2) OFFICE OF THE MAYOR Jim White, Mayor Phone:253-856-5700 Fax: 253-856-6700 KENT Address: 220 Fourth Avenue S. WASH IN G T O N Kent,WA. 98032-5895 AGENDA LODGING TAX ADVISORY BOARD MEETING Friday, April 30, 2004 10:00 am City Council East Chambers Kent City Hall, 220 4th Avenue South 1. Introductions and Call to order—Councilmember Tim Clark 2. Approval of minutes of February 13, 2004 3. Recruit new lodging tax advisory board member 4. Financial Report—Bob Nachlinger, Finance Director 5. 2006 World Senior Softball Tournament Bids-- Nathan Torgelson 6. Partnership opportunities with Seattle Southside Visitor Services. Presentation by Katherine Kertzman, Program Director, followed by questions and answers 7. $1,000 funding request for Kent Bike Festival (May 30, 2004) 8. Survey kiosks in Kent hotels this summer-- Nathan Torgelson 9. Kent Lodging Association-- Marcelle Pechler, Kent Chamber Executive Director 10. Other business 11. Next meeting 12. Adjourn April 24,2004 Nathan Torgelson 220 4th Avenue South Kent,Wa 98032 Dear Nathan Torgelson, Subject: Kent Bike Festival To follow up on our previous conversations, the first annual Kent Bike Festival is scheduled for Sunday, May 30, 2004. The event will take place in downtown Kent, and is expected to draw approximately 1000 participants and spectators. Festivities will include criterium-style bicycle racing, a bike rodeo and helmet fittings put on by the Kent Kiwanis,a BMX demonstration by the Redline Racing team, and sponsor booths to provide exposure for local businesses and organizations. The Kent Bike Festival is part of USA Cycling's Lance Armstrong Junior Olympic Racing Series(LAJORS), a regional youth cycling series that draws youth from the Greater Pacific Northwest (Oregon, British Columbia, Eastern Washington). Established LAJORS events usually have 10-20%of race participants as out-of-area participants.This means a city hosting one of these established events would enjoy noticeable revenue increases in the lodging and restaurant industries in days surrounding the event. Since the Kent Bike Festival is on Sunday over the three-day Memorial Day weekend and runs late into Sunday evening, out-of-area race participants have the option of staying both Saturday and Sunday nights in Kent before traveling back home. With Kent bearing the title of Sports Illustrated's Sportstown, Washington, the city can use this title to draw in more sporting events. By further diversifying Kent's Sportstown image with the addition of an event as unique as the Kent Bike Festival,the city can sell itself as a host to an even broader range of special events,which will draw people from many different regions.Through the distinct features of the racecourse and the festival's unique community involvement, the Kent Bike Festival has the potential of hosting a future state championship cycling event. However, in order for the Kent Bike Festival to establish itself as a focal point of the broader communities it affects,the event must be able to overcome its start-up costs. In an effort to overcome this we would like to make a resource request of$1,000.This money will be used to pay for police, road closures and other logistical expenses incurred to put on this event. Any proceeds for this event will be reinvested through the Washington State Bicycling Association as start-up money for future years' events when Kent is bidding for future state championships and IAJORS events. An investment now has the potential of translating directly to significant revenue in future years. Thank you for your continued interest and support of the first annual Kent Bike Festival. For more information, please visit our website at www.kentbikefestival.com,or contact me at(253)630-0489. Regards, Aaron Renner Event Director Kent Bike Festival j E-mail:aaron_renner@kentbikefestival.com CURRENT BUDGET ANALYSIS LODGING TAX OPERATING FUND as of March 31,2004 2003 2004 2004 2004 Actual Adj Budget YTD Est Actual BEGINNING FUND BALANCE 19,586 53,925 52,420 52,420 REVENUES Lodging Tax 119,198 121,268 22,922 117,957 Interest Income 166 526 95 526 TOTAL REVENUES 119,364 121,794 23,017 118,483 TOTAL RESOURCES 138,950 175,719 75,437 170,903 EXPENDITURES Strong Local Economy Transfer Out-Tourism Destination 85,000 77,404 - 77,404 Transfers Out-Tourism-Related Projects 66,530 76,650 17,231 76,650 Reverse Transfer-Kent Station Land (65,000) - - - TOTAL EXPENDITURES(TRANSFERS) 86,530 154,054 17,231 154,054 ENDING FUND BALANCE 52,420 21,665 58,206 16,849 CURRENT BUDGET ANALYSIS TOURISM-RELATED PROJECTS ACCOUNT as of March 31,2004 2003 2004 2004 2004 Actual Adj Budget YTD Est Actual BEGINNING PROJECT BALANCE 11,402 11,522 12,772 12,772 OTHER INCOME Transfers in-Lodging Tax Fund 66,530 76,650 17,231 76,650 TOTAL OTHER INCOME 66,530 76,650 17,231 76,650 TOTAL RESOURCES 77,932 88,172 30,003 89,422 EXPENDITURES Tourism-Marketing(Softball) (1223) 11,250 - - - Tourism Chamber 2000 (1263) - - - Tourism Chamber 2001 (1271) - - - - Tourism Chamber 2002 (1272) - - (9,790) - Tourism Chamber 2003-Jan-Jun 39,790 - - - Tourism Chamber 2003-July-Dec 14,120 - 9,790 - Tourism Chamber 2004(1274) - 32,320 26,670 32,320 Senior Western World Softball Tourn.-July 2004(1279) - 5,000 3,333 5,000 Tourism-Unallocated(1270) - 39,330 - 39,330 TOTAL EXPENDITURES 65,160 76,650 30,003 76,650 ENDING PROJECT BALANCE 12,772 11,522 - 12,772 22 i ~ Tourism Is... ECONOMIC DEVELOPMENT Seattle Southside Visitor Services Number one generator of jobs Tourism Development and Partnership Opportunities with the • High proportion of entrepreneur owners City of Kent Easily accessible for women and ethnic minorities presented by Biggest part-time employer Katherine Kertzman,Director • Clean industry Who We Are Why SEATTLE Southside? • Seattle Southside Visitor Services (SSVS) Seattle is on the global map is a program offered jointly by the cities of SeaTac and Tukwila It's the#1 destination in the state • Funded by 1% lodging tax Both the state and Seattle have pro-active • 2004 program budget is$774,000 marketing programs • Seattle Southside is leveraging these • 2.5 FTEs opportunities • Competitively markets the area as an ideal Visitors get the connection fast! travel destination SeATTLE de Southside What We Do Seattle Outlook • SSVS provides leadership In 2004 Seattle Conventions &Visitors Bureau will boast +� for the Southside in tourism the highest first quarter , 9 marketing and development convention room night bookings in more than a decade. • Promote our community as a family- • The cruise industry friendly, affordable and easily accessible has projected 140 location that has diverse and interesting sailings and 250,000 = � options for the broad visitor market passengers in 2004. •1 V s Amtrak Tourism = Bright Spot in State Ridership along the f Cascade route has increased five-fold in the past decade 'N,- ' and continues to see fast growth. Visitor spending statewide reached its alhtime hi h at more than $11 2 billion statewide in 2003. t e^ Tourism - Huge Opportunity Leveraging Washington State Tourism • Today visitor spending in • Strong linkage to Washington State's tourism King County is at a higher website level than in 1999 • ExperienceWashington.com is the#1 source ($3.36M) and is likely to of visitor info in Washington surpass the peak it i reached in 2000 ($3.63M) WASYZQTONin the foreseeable future. (Does not include air transportation) -- ` S T A T E — Travel Trends Leveraging Washington State Tourism • Air travel is recovering slowly; auto Co-op Advertising= 13 western states travel remains strong Press Releases to 4000 travel writers • Business travel constitutes a large Press Trips and Tour Operator Tours segment of Southside hotel stays • Travel Trade Positioning • National trend is for leisure travel to Northwest Backroads=TV Viewers grow; business travel will decline` 'Source:National Travel Monitor • Workshops and Trainings for Our Stakeholders and Local Partners .2 SEATTLE Southside SSVS Primary Goal Target Influencers Attract quality visitors to the Southside area y N to increase tourism business income and related tax revenues in order to sustain a robust economy • Area Residents • Partner while enhancing community values. • Media Organizations • Professional • Stakeholders Travel Planners SSVS Secondary Goal SSVS 2004-2006 Objectives Assist in building a sustainable world- Increase visitor ratios and spending class tourism product • Increase group travel and bookings offering quality service and a positive Increase corporate/business traveler visitor experience ratios and length of stay by networking and partnering with the Continue to provide excellent visitor local tourism sector information services sl • Contribute to economic development MAI .; SSVS Target Customers SSVS 2004 Initiatives • Free and Independent Traveler(F.I.T.) • Branding • Coupons OValue-driven,quality conscious • Ad Campaign • Networking • SMERF Groups -social, sports, military, • Public Relations • Restaurant Book educational, religious and fraternal, reunions, weddings, etc. • Website • Travel Packages • Corporate/Business Traveler • Vacation Planner • Direct Mail ©FIT conversion for spouse/family •3 i 1 Branding Website � . SEATTLE co■■ths■ , � THE.PACIFIC N(1RTHWH$I$PARTS HCRP. ,,..s.... i _mow .. �... ........_... ....,.. .....:'.. k Ad Campaign Website r Tk am IIY'!l1.1f�f1f1 nvr8..��k5o.�1,.1ean� ' .r 0 Southold.Southsideu :.,, �-, Public Relations Vacation Planner 1 •4 Southside Coupons Travel Packages Online ....,.Kam.t_• .. ,r.... •/wu. %ifiefdFITZ fl1U'1'Ali:A 1'Y,A _ Printed SEATrLE;SOUthSj s Networking Direct Mail °SSVS Networking Summit--Quarterly -Seattle CVB Celebrate the magic of the season and... -Tacoma CVB -Puget Sound Attractions Council come on over!<au�°p m9sem acap9 bseMrosa,uda.-1K1 r1.,.IrK s«u -Washington State Tourism Network adondwrrnsm9a,-K�a P-danm-I-romay»oppbm9arc -Washington State Group Tour and Travel Association E.. mat CAp Ou h°i0ay ligbrdKpby il at Poml pefarca lm. 9 P ,S crcM9wvageama�n+^smmerc+wBam�i�l«�abe -Washington State Hotel and Lodging Association e.9a+ m9a9no:aAc�^ra..Rwb.nzaam9�ra� -Washington State Association of VBsp� am eN eRx®ml po tdaby—Seu Cbn ksdMgbMw m r� -Western Association of CVBs -Greater Seattle Chamber of Commerce -National Association of Sports Commissions -Southwest King County Chamber of Commerce Southsi p ♦ A-.�. SEATTIE 44101 Restaurant Book Partnerships -i •Creating Travel Packages •Submitting Request for Proposals • Funding Shuttle Services • Puget Sound Attractions Council Fulfillment • Etc. •5 "Sales" Initiatives SSVS Website • Big push to reach: _ .....� Meeting Planners ©International and Domestic Tour —� wr­ Operators (DTravel Trade Reps D Corporate Travel Planners ;r.w Support hotel staff sales initiatives • Sponsor sporting events Report to the Community Seattle Southside Visitor Services Tourism Development Plan • Evaluate success across broad strategic objectives • Timing is excellent to capture emerging • Measure critical data, including visitor ratios opportunities and spending,tax generation and other • We are organized -- ahead of the trends economic factors • We have the confidence of the local • Gauge support from community partners tourism industry • Make annual adjustments to grow and improve the program SEATTLE l st Quarter Accomplishments Why Tourism Partnership? • 77%increase in toll-free travel assistance calls • Partnering cities together have an • 86%increase in unique website visitors increased ability to attract additional • 80%increase in Vacation Packets distributed visitor revenue • 29%increase in online hotel reservations • Coordinated, cooperative effort = • 35%increase in Tourism Networking Summit bigger results attendees • Award-winning tourism marketing • Secured 2 large senior softball tournaments program = Seattle Southside! •6 . - .. Tukwila & SeaTac Partnership Enhanced Partnership • 3 year ILA agreement • Tukwila would remain as project • Tukwila is the program manager,SeaTac manager contracts for SSVS's services • Minimum 3 year agreement • 3 year Tourism Development Plan • SeaTac's LTAC&business community 3 year budget would need to be participate in developing and prioritizing annual determined based on start date, initiatives redesign of Vacation Planner and other • SeaTac's council and LTAC receive regular factors updates-outcome reports • • t' Southside .. Tukwila & SeaTac Partnership Enhanced Partnership • All agendas, meeting minutes, outcome • Kent would be included in all SSVS marketing reports, program updates can be found strategies (except the shuttle project for now) on SSVS's website • This partnership would enable SSVS to hire • SSVS seeks private sector funding for an additional staff member,a business projects as needed community liaison • Each city offers annual grant to • The new staff member will focus on SMERF Chamber for forwarding all visitor and business travelers information inquires to SSVS and other • SSVS director will regularly attend Kent LTAC services meetings Opportunities for Kent Partnership Maintaining Separate Identities Two Options -Promote community events via SSVS online event calendar and press room—events are identified by city 1. Status Quo: partner on a per project -Vacation Planner lists venues by city basis as opportunities resent -Printed materials identify all partnering cities pp p -Automated phone system can be easily reprogrammed by SSVS staff to list Kent hotels 2. Develop enhanced partnership -Promote Kent tourist attractions such as: • Hydroplane Museum • Kent Station • Green River Natural Preserve—Bird Watching • Historical Museum JAnd more..... .7