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Home My WebLink AboutCity Council Committees - Lodging Tax Advisory Committee - 09/18/2001 AGENDA Lodging Tax Advisory Committee Tuesday, September 18, 2001 3:00 p.m. 2nd Floor Kent City Hall Mayor's Conference Room 1. Call to order- Rico 2. Approval of Minutes of June 19, 2001 meeting 3. Finance Report— Finance 4. Introduction of New Members — Rico 5. Money for Market/Marketing - Linda Johnson and Tom Wood 6. Reallocation of City Debt Obligation — Finance 7. Lodging Association. present 2002 Budget Request - 8. Adjourn Added Items: 1. 2. J 8 PO Box 557 JVn Kent, WA 98035-0557 a pwNn:)&vN 253-813-69 76 PARTNERSHIP September 18, 2001 To: City of Kent Lodging Tax Advisory Committee From: Kent Downtown Partnership Inc. Proposal: Marketing Campaign Kent Public Market Attached is our marketing proposal for the year 2002. The Kent Public Market is a community treasure with its simple beginnings in 1973 to the newly renovated historic barn that now houses this growing year round community J attraction. Year to date the market has attracted over 50,000 guests to our community. The markets current vendor base is 154 active vendors. The market generates very few overnight stays, however it provides a simple community activity for guests to enjoy and vendor sales contribute to our local economy. Our plan is simple yet comprehensive looking at three simple goals, make the market more personal, focus on the vendors and their products and make the market more fun. We intend to increase local and tourist traffic. Increase the vendor base thus increasing vendor sales, which will generate increased rental income. The plan includes four parts; print media, brochures, posters and special events. Each piece of the plan builds on each other. We currently monitor our performance and have solid base line to track our results. The market has very limited funding. We look to the community for support. Marketing is one area that we have not been able to adequately accommodate. With the support of the Lodging Tax Advisory Committees recommendation we hope to meet our goals, increase the communities tax base and generate more community involvement.. IJ Marketing Proposal Kent Public Market 'n order for a campaign to be effective it must be comprehensive and consistent Toals Make the Market more personal ❖ Focus on the vendors and their products ❖ Make the Market more fun Results ❖ Increase local customer traffic ❖ Increase tourist's visits •'• Generate more community involvement •'• Increase vendor base •:• Increase vendor sales ❖ Increase rental income Performance/ Measurable Outcome ❖ Track where customers come from Local Tourist In State Out State ❖ Track how new vendor found out about us •'• Track increase in vendors • Track increase in vendors sales Track number of guests at entertainment venues Track increases in rental income Monthly rent Weekly rent Daily rent Special Event rent Brochures ❖ Marketing brochure for customers Distributed at local and regional Hotel/Motels Public libraries Apartment complexes Chamber of Commerce Direct mailed to selected zip codes ❖ Brochure to attract new vendors Distributed to vendors at competing events Current vendors distribute when they are selling at other events ❖ Up-date vendor guide Mail to all past vendors Mail to new prospective vendors Estimated Costs: Two brochures each 20,000 - $4,000 Poster Distributed at libraries Grocery Stores Large company lunchrooms Apartment complex offices Estimated Costs: 1000 posters $1,000 Print Media •'• Image ads in each edition of the Kent, Auburn and Renton Reporter Ads in Tacoma Tribune, South County Journal and Eastside Journal for special events Classified ads in eastern Washington papers seeking new vendors Classified ad in Seattle times seeking permanent vendors ❖ Press Releases ❖ Releases for all special events ❖ Calendar Listings ❖ Phone Book Image ads $8,400 per year Classified ads $400 Special events $1,600 Press releases $600 per year Estimated Cost estimate$11,000 Special Events ❖ Bi-weekly music and or entertainment Estimated Cost: $300 per week$7,800 ❖ Increase vender classes & artists in action Estimated Cost: Classified ads $400 ❖ Four seasonal events, spring, summer, winter& fall Spring—Gardening Event Summer—Music Event Fall—Harvest Event Winter-Holiday Event Posters, flyers, Press Releases and Special Print Media Estimated Cost: $1,000 each event$4,000 ❖ Parties create party packages Birthdays, etc. Printed materials Estimated Cost: $400 Total Estimated Cost $28,600 �, � q, 0 6 KENT CHAMBER OF o COMMERCE Kent Lodging Association 2002 Budget Proposal Web Site • Site will provide complete accommodation information to interested web viewers. • Site will feature all hotels in Kent and provide links to each hotel. • Site will offer meeting planners the option of requesting a proposal from web site. • Marketing dollars for search engines ensures that site will be accessible through most popular search engines and presented to visitors searching for accommodations in our area. Individual Traveler Collateral • Distribution of City of Kent brochures will ensure that the brochures get in the hands of individual travelers around Puget Sound. This will increase our exposure and the consideration of our hotels by more travelers. • Maps will help visitors find Kent attractions & services, and make it easier for them to spend additional dollars while in Kent. Maps will increase traffic in local shops, restaurants, and businesses. Meeting Planner • Planned familiarization events for local and state meeting planners increases our potential to host future meetings and corporate travelers. • Meeting Planner tools will make the planning process easier for parties interested in Kent. Advertising • Placing Kent ads in visitor publications with large circulations increases our exposure as a leisure destination and as a meeting destination. • Funds are allocated to handle visitor inquiries efficiently and effectively via a #800 phone line and staff trained to convert inquiries into overnight stays. Marketing Representative • Hiring and training a sales and marketing representative to act on behalf of all Kent hotels &properties will help streamline inquiries and ensure that hotels get meeting business in Kent. 524 West Meeker Street • Suite #1 • P.O. Box 128 • Kent, Washington 98035-0128 (253) 854-1770 • Fax (253) 854-8567 • www.kentchamber.com • kentcoc@kentchamber.com Kent Lodging Assn. 2002 Budget Proposal NOTES: 10% increase in hotel occupancyfrom 2000 will raise an additional $16,300 for the City's t 20% increase in hotel occupancy from 2000 will raise an additional $32,600 for the City of 2002 Service I Budget Web site Hosting $ 600 Consulting $ 1,500 Content administration $ 10,800 Content management system $ 1,500 Search engine marketing I $ 2,500 Subtotal $ 16,900 Individual Traveler Collateral Print pad map &lure brochure $ 1 ,400 2 Postage: $100/mo. $ , 00 Certified Folder distribution $ 6,000 Subtotal $ 18,400 Meeting Planner Print $ 1,700 Postage $ 1,600 FAM tour $ 3,000 Subtotal $ 6,300 Advertising WA State Visitors Guide $ 6,000 Puget Sound Business Journal $ 1,800 Olympia FTE Newspaper $ 600 AAA Tour Guide 1 $ 1,500 Toll free number: 125 calls mo.@ 10 min. @ $0.10/min. $ 1,500 Subtotal 1 $ 11,400 Marketing Representative ry: PT $ 18,000 Sala Payroll $ 1,620 Benefits $ 5,400 Training/contractor $ 2,000 Travel $ 3,000 Admin. ON I $ 15,105 Subtotal $ 45,125 Total I $ 98,125 City of Kent Lodging Tax Advisory Committee DRAFT FundingPolicy i Hotel/Motel Taxes The Hotel/Motel Fund accrues from a portion of the State's retail sales tax collected on lodging facilities within the City of Kent. Intended use of this tax is outlined in the RCW statute. The general purpose of these funds is to offer communities a revenue stream to invest in the local economy and to increase tourism spending. Expenditures must demonstrate a solid"return-on-investment" and support growth in tourism revenues. If the fund is not replenished through sound investments,this revenue source will decline. Hotel/Motel Tax Allocation The City of Kent contracts with the Kent Chamber of Commerce to provide specific tourism and promotional activities on behalf of Kent area hotels. This entity should receive the majority of the tax allocation to ensure expenditures are targeted to increase hotel occupancies,thereby increasing hotel tax revenues in the City of Kent. Evaluation of Requests Each submission for funding should be evaluated on several merits. The following items should be considered when reviewing funding requests: -How will this organization/activity contribute to the hotel/motel tax fund and the City of Kent? -Will this expenditure generate additional hotel/motel tax revenues in the future? -Will this activity/investment increase hotel occupancies? -Is this expense within the legal intent of these revenues? -How will "return-on-investment"be measured for this activity? -Is the funding entity a stable organization with a proven track record? -What is the annual budget, business plan,marketing strategy for each organization receiving funding? How much of the budget is allocated to marketing(increasing occupancies)?