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TDC Minutes 12/22/2003 RDecember 22, 2003 TRANSCRIPT OF THE MEETING OF THE COLLIER COUNTY TOURIST DEVELOPMENT COUNCIL Naples, Florida, December 22, 2003 LET IT BE REMEMBERED, that the Collier County Tourist Development Council in and for the County of Collier, having conducted business herein, met on this date at 9:00 AM in REGULAR SESSION in Building "F of the Government Complex, East Naples, Florida, with the following members present: ALSO PRESENT: CHAIRMAN: Commissioner Tom Henning Gary Galleberg Susan Becker David Loving E. Glenn Tucker Kevin Durkin Robert Dictor Joe Dinunzio Rhona Saunders Jack Wert - Director of Tourism Ron Hovell - Public Utilities Engineering Heidi Ashton - Assistant County Attorney COLIJER COUNTY TOURIST DEVELOPMENT COUNCIL AMENDED MEETING AGENDA COLLIER COUNTY COMMISSION CHAMBERS December 22, 2003 9 A.M.- NOON NOTE: PLEASE BE ADVISED IT IS POSSIBLE THAT MORE THAN ONE COLLIER COUNTY COMMISSIONER WILL ATTEND THIS MEETING OF THE TOURIST DEVELOPMENT COUNCIL. CALL TO ORDER II ROLL CALL III CHANGES AND APPROVAL OF AGENDA IV APPROVAL OF MINUTES- November 24, 2003 TDC and V STAFF REPORTS 1. Director's Report- Jack Wert 2. Sales Manager Report- Debi DeBenedetto 3. P.R. Report- JoNell Modys 4. Film Coordinator Report- Maggie McCarty 5. Inquiry Report - Jack Wert a. Phase V - Fulfillmem & Call Summary b. GolfPac- Golf Inquiries 6. Search Engine Report- Jack Wert Category "A" Beach Projects- Ron Hovell, Public Utilities Engineering Dept. 1. Wiggins Pass Permit Modification 2. Review of Deferred Projects 3. 10-Year Budget for Category "A" Projects VII OLD BUSINESS VIII NEW BUSINESS Additional 4th percent TDC tax for Advertising and Promotion IX ANNOUNCEMENTS X AUDIENCE INPUT & DISCUSSION XI COUNCIL DISCUSSION XII NEXT MEETING DATE/LOCATION January 26, 2004 II. III. IV. December 22, 2003 The meeting was called to order by Commissioner Tom Henning at 9:00 AM. Pledge of Allegiance was recited. Roll Call - a quorum was established. (Mr. Dinunzio arrived at 9:02 AM) Changes and Approval of Agenda Added - Under VI Category "A" Beach Projects (3) Budget Amendment was added. Approval of Minutes - November 24, 2003 Ms. Becker moved to approve the minutes of November 24, 2003. Second by Ms. Saunders. Carried unanimously 9-0. Staff Reports: 1. Director's report - Jack Wert - gave report including the following schedules: (Attached) · Trade show schedule will include the Netherlands in January · Tourism Advisory Roundtable meeting in February · Tourist tax collections show growth · BCC approved the Category "A" beach policy on 12/16/03 · Golf Market continues lucrative for Collier County · Passed out designs for theme from Paradise Marketing e Sales Manager Report - Debbie DeBenedetto - listed are a few of the meetings and projects she is involved in: (Attached) · Doing a Gift Certificate for Valentines Day on Web site · Meeting with Marco Hoteliers · Meeting with various specialists · Trade Show Booth meeting with top tour operators P.R. Report - JoNell Modys - some of her activities included the following: (attached) · Convention of Society of American Travel Writers · Worked on itineraries for 7 visiting Journalists · Worked on many magazines · Educated hospitality workers about eco-tourism events · Worked on Visitors Guide project (formal visitors guide magazine) · Film Coordinator Report - Maggie McCarty Film Coordinator Report - Maggie McCarty (Attached) · Covered the different meetings attended · Production Notes · Working Leads 2 December 22, 2003 VI. · Operations - working with Governors Office · Media - magazines · Big Cypress FAM Tour e Inquiry Report - Jack Wert a. Phase V - Fulfillment & Call Summary (Attached) - gave activity from last year vs. this year and responses by State. b. Golf Pac-Goif Inquires - statistics attached. Search Engine Report - Jack Weft · Promotion Services performed off Overture, Google and Looksmart · Recent Search Engine News shown Category "A" Beach Projects - Ron Hovell, Public Utilities Engineering Dept. · Budget Amendment in packet and approved by Board of County Commissioners with increasing the Budget by 10%. All but 1,500 tons of sand has been trucked in and will finish in next few days. May have sand left over to do South end. 1. Wiggins Pass Permit Modifications - Ron Hovell(Grant Application attached) · Peninsula on north side of inlet - Barefoot Preserve (lease agreement with County) eroding · Consulted with Humiston & Moore · CAC proposed to proceed with first two tasks (Conceptual Plan & Pre- Application Meetings) · Designated as outstanding Florida Waters · Growth Management Plan precludes putting in shoreline structures (prohibited) · Request to approve Budget Amendment for $15,000 for Work Order to Humiston & Moore. · North Bay Civic Assn. objects to scope of work by Humiston & Moore as they believe there is a conflict of interest. · Aerial of area was shown Mr. Galleberg moved to approve the Budget Amendment $15,000 for the Work Order to Humiston & Moore. Second by Mr. Durkin. Carried unanimously 9-0. 2. Review of Deferred Projects - Ron Hovell · Covered the deferred projects and various Grant Applications. Commissioner Henning asked Mr. Hovell which of the projects do not fit the intent of the policy in which Mr. Hovell responded that Hideaway Beach doesn't have the public street access which is required in the policy, so consequently not VII. December 22, 2003 eligible for Tourist Tax dollars. South Beach is at the south end of Marco Island where the County beach access has been improved with pavers and a parking lot across Collier Blvd., which is eligible for Tourist Tax dollars. There are some budgetary issues, but most projects will go forward. e 10-year Budget for Category "A" Projects · Long range plans need to be updated with addressing the policy issues. · In the beach policy there is an average set-aside of $2M/yr for Beach parking facilities and Parks & Recreation for reserves and beach renourishment. Commissioner Henning stated Parks and Rec should be responsible for developing a 10 year plan. Old Business - None VIII. New Business Additional 4th percent TDC tax for Advertising and Promotion - Jack Wert (A summary of the presentation by Mr. Wert is attached and is as follows) · History of the Tourist Development Tax in Collier County Amendments and allocations were given in the different categories · The Ordinances were covered. Currently, there is a total of 66.67% for Cat. "A", 15.49% Cat. "B", 17.85% Cat. "C". · Category "B" was broken down and given with the total figure of $1,687,000 (Includes $400,000 transferred from Operating Reserves for Advertising & Promotion) A graph was shown with various other areas of competition showing Collier County being the lowest in marketing investments. The value of advertising was given showing every dollar in advertising supports approx. $345 in Direct Tourist Expenditures plus showing $513 of Economic Impact of Advertising. Other research data was shown on the value of advertising. Tourism Employment Impact was given for jobs and wages compared to two other counties. Collier County was the lowest. Gave the impact of Tourism in Collier county Tourist Tax Revenue Projections were: 3% vs. 4% 2004-3% $8.6M - 4% 11.4M 2005-3% $9.0M - 4% 12.0M 2006-3% $9.5M - 4% 12.6M 2007-3% $10.2M- 4% 13.5M 2005 Category "A" - $6M Category "B" - $4.4M Category "C" - $1.6M 4 December 22, 2003 Media Plan Additions with 4th Cent - Television outside Florida - Print in NE & MW Feeder Markers - Aggressive On-Line Promotion - International Print Advertising, On-Line Promotion, Collateral & Travel Agents Meetings Market Trade Ads Cedar Hames, Paradise Advertising & Marketing - showed 2 TV Commercials that could be shown with recommended strategies and tactics. He discussed the areas they would focus on outside the State of Florida and gave more details on the media plan Mr. Wert discussed earlier. The program they are recommending works, and has done a similar program in the past which was successful. Commissioner Henning asked about the time of the year - in which Mr. Hames responded it would be in the shoulder and off season months between April/May, summer months and October/November. It would be 2005 before noticing a difference in the additional dollars. Mr. Weft mentioned the increase in sales tax will also benefit other areas of the County. Commissioner Henning stated he did not see a certain rate of return on promotions. Mr. Hames mentioned in other programs they have seen a dramatic impact and Mr. Wert is being very conservative. The 4th penny cannot be used for anything other than advertising, promotions, support of a convention center and/or professional sports franchise. Mr. Galleberg would like to see more facts and figures for a return on their investment. Heidi Ashton, Assistant County Attorney mentioned the results of their Workshop showed the shifting of 15% of the 3% for advertising & promotion into the Category "A" for beaches and the additional 1 penny strictly for advertising and promotion. Another option would be to have a special act of requesting the Legislature using 1% for beach park facilities or beach access. Different ideas of using the funds were discussed. (Beach renourishment, beach access etc.) Mr. Galleberg did not favor the 4th penny. Ms. Saunders stated the $1.3M did not belong in advertising and should go towards the policy. December 22, 2003 Mr. Loving gave statistics of population numbers in the area and was concerned about the doubling of residents without the increase in beach access. Commissioner Henning discussed doing a "park & shuttle" for beaches. He stated the BCC directed staff to look at opportunities to try to make the airports cost feasible. Everglades Airport is part of that opportunity. He mentioned Collier County does not have a beach access to those beaches in Pelican Bay. The 4th penny is being created by the idea of getting more beach access according to Mr. Loving, and he would like to see the benefits of the 4th cent. He is concerned that it will or will not be a benefit all the way around for the proposed increased tax. Mr. Loving stated they need to show the Hoteliers the advantages of the return on the extra penny. Their beach access will always be there compared to a Hotel not on the beach, which might be a problem, since they cannot get to the beach. SPEAKERS Clark Hill - General Manager Hilton Hotel Gave a history of tourist tax. Stated there is a deteriorating amount of advertising and if they continue to compete, they have to have top line awareness. Board of Directors of the Hotel Assn. - their opinion is if the 4th penny is strictly used for advertising and marketing would be very beneficial to the Hotel economy in the County. The Board of Directors does support it. Discussion followed on occupancy rates in Collier County vs. Lee County. Needed to keep in mind the 4th penny is to impact the off-season. Ron Albeit - General Manager Registry Resort Discussed the difference in what is spent with the 3% allocation in Collier vs. Lee County. Stated this is a quick idea that is being discussed and came out of the beach access policy. They are not at pre 9/11 levels - not even in season, if going to advertise for Jan/Feb/March, they would like that - they are not at capacity; Ritz Carlton and LaPlaya included. Another 1% tax could be a good return but need more study and discussion. Would not like to have them recommend it to the Board of County Commissioners until more discussion has been done. Bill Gunderson - General Manager Naples Beach Hotel and Golf Club Based on everything he has seen the advertising and promotions has gone through a tremendous change and has watched the dollars being wasted on promotional events, reallocated to support museums with the original 40% set-up to promote their destination being attacked. Has watched 6 December 22, 2003 with interest in the beach access policy and discussion, but more interest in Commissioner Fiala's proposal for the 4th cent. Does not believe taxing their industry at this time is a wise move. Does not believe the current situation they are facing right now is strictly due to a lack of advertising. It is a difficult worldwide situation and will eventually come out of it. Not sure more advertising dollars are going to fix the problem. Need to spend more time and research on the effect on the industry. Bill Doyle - Edgewater Beach Hotel Resort He reiterated what Mr. Gunderson said. The proposal put in front of them by staff is more motivated for monies for the beach than extending a hand to their industry. It is not fully studied enough to know how it will be spent or allocated in the different areas of advertising. If they would have stuck to the allocations of the original plan of 40%, funding would be there for the beaches and advertising. He read a letter from Mr. Staros with the Ritz Carlton. (also stated the plan should be postponed until well thought out before establishing a long term outlook and budget is established with no potential increases) Edgewater, Ritz Carton and LaPlaya are not in favor of the proposal. Jim Carter - Representing the Collier County Motel/Hotel Lodging Assn. Board of Directors - Issue is credibility. Gave a history from 1997 that the original purpose of tourist taxing in the State of Florida says it is to generate a dedicated source of funds to advertise and promote the growth of tourism in a specific area in order to fill more hotel/motel beds and generate local economic impact. No question of the value of Category "A", and necessary. Category "B" gives the money that now has the least amount of money and asking to be given up if a 4th penny. Category "C" is a political process and not adding value. Now revisiting the policy adopted and questions the $1.3M in Category "B." Tourism is #1 industry in Collier County and produces benefits for all of Collier County. Why take away the $1.3M to get $3M. Example - give the $3M, but costs $1.3M to get it, and now has $1.7M. If4th penny added, the language in the local Ordinance would have to mirror the State Ordinance, which specifically says it has to be used for Advertising and Marketing, not to be touched for any other purposes. Category "B" - $1.3M needs to stay in place. He gave the advantages of beach access and the advertising and marketing issues. If a 4th penny, needs to be kept in place strictly for advertising and marketing, not penalize the industry by taking away the $1.3M that is there, so credibility can be restored. Most governments are cutting taxes and not adding them. Study the models and get the numbers right. Commissioner Henning summarized the discussion in stating the process needs to be slowed down to get more information and look at the effects of the existing expenditures for promotion with an additional penny. Mr. Wert gave the split on Lee County's tax as: 53.6% Advertising and Promotion 33% Beach Renourishment Projects 13.4% Debt Service on Sports Complex 7 December 22, 2003 Summary of discussion: · Advertising should be spent when things are bad. · History of how funds are going to be spent hasn't been established. · More time and study with facts & figures needs to be done (some concern on slowing down) · Review advertising proposal · More study on beach access and alternatives · Study allocations - hotels don't support museums getting tourist tax · Proceed with caution - blend ideas together (look at all issues) · Revenue Commission is looking at impact fee for beach and boat access · More information needed before going before the Board of County Comnfissioners · Another TDC workshop needed in next month or two with industry involved · Discussing what to do with the $1.3M and the benefits with the BCC/could be confusing · Important that industry support decision IX. Xo XI. XII. Announcements - Mr. Dinunzio will be absent at January meeting. Commissioner Henning was thanked for his leadership and dedication. Audience Input & Discussion - none Council Discussion - as per above. Next Meeting Date/Location January 26, 2004 There being no further business for the good of the County, the meeting was adjourned by order of the Chair at 11:20 PM. COLLIER COUNTY TOURIST DEVELOPMENT COUNCIL Chairman Commissioner Tom Henning 8