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Home My WebLink AboutCity Council Committees - Lodging Tax Advisory Committee - 01/25/2012 (2) KEaT W =II .T, . AGENDA LODGING TAX ADVISORY COMMITTEE MEETING January 25, 2012, 4:00 pm Centennial North & South Conference Room 1st Floor, Centennial Building, City of Kent Campus (Just across from the elevators) Attendance: Councilmember Jamie Perry, Chair Bob Nachlinger, Staff Barbara Smith Julie Pulliam, Staff Andrew Hutchinson Kurt Hanson, Staff David Kwok Ben Wolters, Staff Aaron Watne Tom Brubaker Beth Sylves, Katherine Kertzman, Guest John Casey Andrea Keikkala, Guest Introductions Creative Ideas for 2012 - Chair Jamie Perry Information Items: 1. Welcome to 2012 - Kurt Hanson 2. Any additional items for the agenda - Kurt Hanson 3. Recap 2011 Budget - Bob Nachlinger . 2011 Expenditures 4. Seattle Southside Report - Katherine Kertzman Items Requiring Action: 1. Approval of minutes of October 13, 2011 - Motion 2. 2012 Budget - Bob Nachlinger 3. New opportunities for 2012 • Committee Discussion 4. Set 2012 Meeting Schedule For the Good of the Order Assignments for next meeting Next Meeting Date KENT DOWNTOWN PARTNERSHIP January 17, 2012 Dear Mayor Cooke and City Council: I, Barbara Smith, Executive Director of Kent Downtown Partnership, would like to thank you for appointing me to the Kent Lodging Tax Advisory Board. My term is up. I have enjoyed my term on the Kent Lodging Tax Advisory and hope you will reappoint me. My hope is that I have added value to the LTAB and would like to continue my work with the members on the Board. If you have questions, please feel free to contact me. Respectfully, Barbara Smith, Executive Director Kent Downtown Partnership 202 W. Gowe Street, Suite A Kent, WA 98032 253-813-6976 barbaras@kentdowntown.org www.kentdowntownwa.com Associates SEATTLE SOUTHSI DE Travel Impacts, 2003-201 l p January 2012 E 1 photo courtesy of Seattle Southside Visitor Services Prepared for Seattle Southside Visitor Services Seattle, Washington SEATTLE SOUTHSIDE TRAVEL IMPACTS, 2003-2011 P TUKWILA, SEATAC, KENT & DES MOINES This study, prepared for Seattle Southside Visitor Services, documents the economic significance of the travel industry in the Seattle Southside area of King County from 2003 through 2011 . The estimates for 2011 are preliminary. The separate estimates for Tukwila, SeaTac, Kent and Des Moines are reported at a summary level for 2011 only. Overnight visitor volume estimates and average spending estimates for the larger Seattle Southside are also provided in this report. REPORT CONTENTS The main body of this report contains five sections: • Seattle Southside Travel Trends(annual estimates of economic impacts and lodging sales for the larger Seattle Southside) • Travel Impacts in Des Moines, Kent, SeaTacand Tukwila (summary estimates for ,011 p, only) • jVisitor Volume(major trends and characteristics) • Detailed Spending and Visitor Volume Tables • Detailed Impact Tables The report also contains appendices that provide an overview of methodology and definitions of terms and concepts. INTERPRETATION OF IMPACT ESTIMATES Users of this report should be aware of the following with respect to the interpretation of these estimates: • All monetary estimates in this report are expressed in currentdollars. There is no adjustment for inflation. • Sub-county estimates such as contained in this report are necessarily less reliable than county and state level estimates because of data limitations. Nonetheless, these estimates were generally prepared with the same methodology used to estimate county and state level travel impacts and visitor volume. A DEAN RUNYAN ASSOCIATES PAGE 1 TRAVEL IMPACTS IN DES MOINES, KENT, SEATAC AND TUKWILA j The preliminary 2011 impact estimates for the four cities within the Seattle Southside are shown below. Lodging sales (for 2010) are shown in the pie chart. In general, these estimates are a function of lodging sales, the number of private homes for visiting friends and relatives, and the volume of sales in other types of establishments that serve visitors (e.g., restaurants, entertainment and retail). (Note: These small area estimates are necessarily less reliable than the estimates for the larger Seattle Southside due to data limitations.) Travel Impacts within Seattle Southside, 2011 p Travel Tax Receipts Spending Earnings Employment Local State Total ($Million) ($Million) (jobs) ($Million) ($Million) ($Million) Des Moines 22.3 8.2 240 0.9 1.3 2.1 Kent 151.5 47.3 1,380 5.9 8.6 14.5 SeaTac 171.4 52.1 1,480 6.7 9.8 16.4 Tukwila 246.9 65.4 1,920 9.6 14.1 23.7 Seattle Southside 592.1 173.1 5,010 23.1 33.7 56.8 Lodging Sales within Seattle Southside 2010 Although Tukwila has the greatest estimated visitor Des Moines, Tu kw!I a,$45.9 $1.7 spending, SeaTac has 60 Kent.5163 " percent of all lodging sales. However, its share of visitor-related sales in food services, seaTac,sloo.o entertainment and retail is comparatively smaller. Source: Washington State Department of Revenue. Lodging sales calculated from 1%Additional Hotel/Motel tax for Des Moines, Kent,SeaTac and Tukwila. DEAN RUNYAN ASSOCIATES PAGE 3 DETAILED SPENDING AND VISITOR VOLUME TABLES The following three tables are inter-related. The first, Visitor Spending by Type of Traveler Accommodation, reports the total annual spending estimates for each type of visitor. The second, Average Expenditures for OvernightVisitors, reports the average daily and average trip expenditures for each type of visitor for 2011 p. The third table, Overnight Visitor Volume, reports annual visitor volume for each type of visitor. Volume is broken out in terms of trips and nights and visitors (persons) and travel parties. In general, multiplication of an average spending numbers with the appropriate volume number will yield the annual total spending number for that type of visitor. (See appendix B.) Day travel represents less than five percent of all visitor spending in the Seattle Southside ($26 million in 2011 p). Due to data limitations, reliable estimates of visitor volume and average expenditures cannot be reported for day travel. Visitor Spending by Type of Traveler Accommodation ($Million), 2003-2011p 2003 2005 2007 2008 2009 2010 2011p All Overnight 419.6 485.0 559.0 561.5 488.9 503.6 545.3 Hotel, Motel 390.4 453.9 526.1 527.5 455.4 468.5 508.4 Other Overnight 29.2 31.1 32.9 34.0 33.5 35.2 36.9 Day Travel 20.8 23.5 25.3 25.4 23.2 24.2 26.0 Spending at Destination 440.4 508.5 584.3 586.9 512.1 527.9 571.3 Note: Destination spending does not include ground transportation expenditures for travel to other Washington destinations. Average Expenditures for Overnight Visitors, 2011p Travel Party Visitor (Person) Party Length of Day Trip Day Trip Size Stay(nights) Hotel, Motel $369 $740 $169 $337 2.2 2.0 Other Overnight $69 $217 $34 $104 2.0 3.2 All Overnight $283 $636 $132 $292 2.1 2.2 Overnight Visitor Volume, 2009-2011p Visitor-Nights (000) Party-Nights (000) 2009 2010 2011 2009 2010 2011 Hotel, Motel 2,795 2,875 3,006 1,290 1,321 1,379 Other Overnight 1,033 1,081 1,100 506 529 539 All Overnight 3,857 3,977 4,128 1,807 1,858 1,926 Visitor-Trips (000) Party-Trips (000) 2009 2010 2011 2009 2010 2011 Hotel, Motel 1,403 1,443 1,509 642 658 687 Other Overnight 335 350 357 160 167 170 AII.Overnight 1,738 1,793 1,866 802 825 857 DEAN RUNYAN ASSOCIATES PAGE 5 i APPENDICES APPENDIX A: KEY TERMS AND DEFINITIONS APPENDIX B: TRAVEL IMPACT INDUSTRIES MATCHED TO 2007 NAILS APPENDIX C: RELATIONSHIP BETWEEN SPENDING AND VOLUME APPENDIX D: REGIONAL TRAVEL IMPACT MODEL i DEAN RUNYAN ASSOCIATES PAGE 7 VISITOR VOLUME Length of Stay: The number of nights that a visitor or travel party is away from home on a trip. Night: Applies to overnight visitors only. The number of nights on a trip is the length of stay. The count of days and nights is generally equivalent for overnight visitors. (See trips.) Party-trips: The number of trips to the destination by travel parties. Party-trips are equal to the number of Visitor-trips divided by the average party size. Party-nights: The number of nights or days that travel parties stayed at the destination. Party-nights are equal to the number of visitor-nights divided by the average party size or the number of party-trips multiplied by the average length of stay. Party Size: The number of individuals (adults and children, including non-household members) that are traveling together and are sharing the costs of travel. Room Demand: A count of the number of hotel/motel rooms that are sold on a nightly basis over a given period of time. Also referred to as room nights sold. Travel party: A trave/party includes all visitors(adults and children) traveling together. The party size represents the average number of visitors or persons in the travel party. Trip: A trip may include more than one day or night at a destination. For overnight visitor categories, the total number of trips will be less than the number of nights. The length of stayfor the trip represents the number of nights (or days) at the destination. Visitor: An individual traveler that stays overnight away from home in paid or unpaid accommodations, or a day visitor that travels at least fifty miles one-way from home on non-routine trip. Visitor Air Arrival: A passenger who travels by air and initiated the trip at another location. Visitor air arrivals do not include passengers who are returning home from a trip to another destination or passengers that are making a connection to another flight. Visitor-trips: The number of trips to the destination by visitors or persons. This is also equivalent to as the total number of visits. Visitor-nights: The number of nights or days that visitors (persons) stayed at the destination. Visitor-nights are equal to the number of visitor-trips multiplied by the average length of stay. �.J DEAN RUNYAN ASSOCIATES PAGE 9 APPENDIX C 9 RELATIONSHIP BETWEEN SPENDING AND VOLUME The Spending, Average Expenditures and Volume tables are computationally related as shown below. • Spending equa/sAverage Expenditures mu/tip/iedbyVolume for comparable party/person and night/trip categories • Travel parties and persons are related by division or multiplication with Party Size • Trips and nights are related by division or multiplication with Length of Stay Visitor Spending by Type of Accommodation ($Million),YEAR YEAR All Overnight 656,000 x $79 = $56,100,000(calculated from person-trips) 56.1' Hotel, Motel 160,000 x $200 = $32,000,000(calculated from party-nights) 32.0 Private Home 1,030,000 x$20 = $20,600,000 (calculated from person-nights) 20.6 Other Overnight 10,000 x $350 = $3,500,000(calculated from party-trips) 3.5 Campground 3.0 Vacation Home 0.5 Day Travel 30.0 Spending at Destination 86.1 Average Expenditures for Overnight Visitors,YEAR Travel Party Visitor (Person) Party Length of Nights Trip Nights Trip Size Stay(nights) Hotel, Motel $200 $340 $83 $142 2.4 1.7 Private Home $50 $130 $20 $52 2.5 2.6 Other Overnight $117 $350 $34 $103 3.4 3.0 All Overnight $494 $214 $197 $€16 2.5 2.3 Overnight Visitor Volume, YEAR Visitor-Nights (000) Party-Nights (000) YEAR YEAR Hotel, Motel 160 x 2.4 = 384 160 Private Home 1,030 412 Other Overnight 102 30 All Overnight 1,516 602 Visitor-Trips (000) Party-Trips (000) YEAR YEAR Hotel, Motel 226 94 Private Home 1,030/2.6 = 396 158 Other Overnight _ _ 34 10 All Overnight# 656i 263 'J DEAN RUNYAN ASSOCIATES PAGE 11 N O N Q, �o O o O cr-� O O 0 0 CD 00 00 M _Y O O W O m n C,r) CV M O r O G0 W m O O r coN � �ca N � O O M O T CV N O cz _ cm rr cz E � O N O O �'- cn L L O O � co N O It CO> CO Ct r LO M ONO M LM N CL � -0 C) O ► � O Cc D- .Ln cz Wja w N _ O _ D 0 > O C3 rr cn F- 0 Page 1 of 1 About us Statistics& reports TID Tax Distributions - Single Location Tax Distributions - Single Location Distribution: Additional Local Hotel/Motel Location: Kent Year: 1983, 1984,1985, 1986, 1987, 1988, 1989, 1990, 1991, 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000,2001,2002,2003,2004,2005,2006,2007,2008,2009,2010, and 2011 Month: December Notes: 1. Distributions are based on previous months retail sales and use tax accruals. 2. "D" means the records are not disclosable due to confidentiality requirements. 3. 10.00" in the second month displayed means the data is not available at this time. Please check back next month. Back.to Search Create Excel File Kent Location Year Name December Year to Date Kent 2011 Additional Local $13,252.99 $181,937.31 Hotel/Motel Kent 2010 Additional Local $12,674.04 $158,693.84 Hotel/Motel Kent 2009 Additional Local $13,971.90 $150,329.74 Hotel/Motel Kent 2008 Additional Local $13,083.60 $196,486.59 Hotel/Motel Kent 2007 Additional Local $17,954.15 $195,196.18 Hotel/Motel Kent 2006 Additional Local $14,899.03 $164,877.24 Hotel/Motel Kent 2005 Additional Local $11,159.14 $135,406.67 Hotel/Motel Kent 2004 Additional Local $8,373.40 $122,280.82 Hotel/Motel Kent 2003 Additional Local $11,002.71 $121,067.64 Hotel/Motel Kent 2002 Additional Local $8,193.03 $127,264.96 Hotel/Motel Kent 2001 Additional Local Hotel/Motel $10,801.32 $151,206.93 ' Kent 2000 Additional Local $13,722.44 $162,901.23 Hotel/Motel Kent 1999 Additional Local $18,613.08 $122,082.61 Hotel/Motel For more information contact Statistics& Reports. http://dor.wa.gov/content/aboutus/statisticsandreports/TID/SingleResults.aspx?Year=2004... 1/25/2012 i 9 Come find out what's going on in downtown Kent on Friday, February 17th at the Downtown Breakfast Hour. Networking starts at 7 am, program at 7:30 and you're on to the rest of your day by 9! s � Door f � VNTOWN BREAKFAST HOUR MEMBERS $5/NON-MEMBERS $7.50 AKENT n 40AY, FEBRUARY 17 7-9 AM DOWNTOWN SHOWARE CENTER 625 W. JAMES, KENT, WA PARTNERSHIP