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TDC Minutes 01/26/2004 WJanuary 26, 2004 TRANSCRIPT OF THE WORK SESSION OF THE TOURIST DEVELOPMENT COUNCIL Naples, Florida, January 26, 2004 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 1:00 for a WORKSHOP SESSION in Building "H, second floor conference room, No. 216 with the following members present: Also Present: Jack Wert, Director Tourism Heidi Ashton, County Attorney Donna Fiala, Chair Kevin Durkin Robert Dictor Rhona Saunders Excused Absences: Gary Galleberg Susan Becker Joe Dinunzio Absent: David Loving Glenn Tucker I II III IV V VI VII VIII IX COLLIER COUNTY TOURIST DEVELOPMENT COUNCIL WORK SESSION AGENDA COLLIER COUNTY HEALTH SERVICES BLDG. H SECOND FLOOR CONFERENCE ROOM NO. 216 JANUARY 26, 2004 1:00-5:00 P.M. CALL TO ORDER ROLL CALL CHANGES AND APPROVAL OF AGENDA OLD BUSINESS Possible Increase of Tourist Development Tax to 4% NEW BUSINESS ANNOUNCEMENTS AUDIENCE INPUT & DISCUSSION COUNCIL DISCUSSION NEXT TDC MEETING DATE/LOCATION February 23, 2004 - County Commission Chambers X ADJOURNMENT II. IlL IV. Call to Order by Donna Fiala Roll Call Changes and Approval of Agenda - Mr. Wert indicated that he had received additional information regarding the Public Information Campaign for Beach Renourishment. Requested to share the information and address the issue later during the workshop under the category of old business. Old Business A. Possible Increase of Tourist Development Tax to 4%. Mr. Weft shared a slide presentation which was a competitive analysis of what other beach counties in Florida are spending on marketing and advertising. They are as follows: - Palm Beach: $611.32 per lodging unit - Broward County: $313 per unit Charlotte County: $248 per unit Pinellas County: $237.14 per unit Lee County: $196.15 per unit - Bay County: $165 per unit - Manatee County: $153.85 per unit - Collier County: $66.67 per unit Collier County is the lowest in tourism promotion investment by lodging unit by county. Discussion regarding current tax allocation of $8.3 million: - Category A (Beach Projects): 66.67% (50% lst Two cents/100% third cent) - Category B (Advertising, promotion, administration): 5.49% (23.236% of 1st 2%) (Approx. $1.3 million) Category C: 17.85% (of 1st 2%) County museums- 12.67 Non-county- 5.18% Approved Budget for FY 2004 Promotion and advertising: Contracts: Travel: Trade Show Registrations Printing Furniture and Equipment Administration Total $700,000 $228,OOO $23,6OO $35,6OO $40,000 $14,000 $645,800 $1,687,000 2 Note: $400,000 transferred from operating reserves for advertising and promotion otherwise the budget would have been $1,287,000. - Mr. Wert asked for comments and questions from the audience. Question about allocation of funds Mr. Weft indicated that allocations are based on county ordinance not on state statute. Mr. Wert explained that a tourist tax was approved with the caveat that 60% be used for beach renourishment and 40% for advertising. A big change occurred when the TDC had to allocate a portion of their tax for the museums. According to Mr. Wert many other counties allocate funds for museums out of the general fund. Discussion about increase in tax Ron Albeit, General Manager of the Registry Resort Suggested that we improve on the current 3% tax. Do not raise. The time is not good. The allocation should be moved. Bill Doyle, Concierge, The Edgewater Beach Club and Hotel - Expressed similar concern over reallocation. Suggested moving the museum money out of TDC funds. Jack Wert indicated that state funds have never been leveraged. There was always enough money. Now, we are spending reserves and we need to do a better job of leveraging funds. Beginning this year a major concentrated effort is happening for state funds and we are high on the list for perhaps $400-500,000. Must ensure we get on the list every year and move up on that list. Kevin Durkin, TDC Requested an analysis of $ spent per beach unit, size of beach, erosion, etc. Mr. Wert indicated that it would be researched and examined. He also indicated that other counties use money from community contributions for beach maintenance. In addition, Collier County has high level of maintenance. Also brought up the subject of private funding and sponsorship for beach renourishment. Discussion over concerns regarding reserve money and interest (Approx. $500,000) Possible recommendation. Rona Saunders, TDC - In favor ofreallocating museum money. Questioned the feasibility of this. Donna Fiala, TDC She responded to Ms. Saunders' question and indicated that it was possible if another source of money could be found. - She indicated that she had previously recommended reducing money to museums if their hours did not change to include Saturdays. They now do. 3 Ed Staros, Registry Resort, VP and Managing Director - Not practical to increase tax at this time - Find new source revenue for museums Mr. Wert Discussion regarding the timeframe for increase. Indicated that Ms. Fiala made initial recommendation for tax increase. Suggested that facts be brought out and discussed and implementation is not immediate. Recommendation needs to come from TDC to county commission to move this topic forward. - Would like to make sure that all details are provided today to arm the TDC with information needed down the road. Tom White, Hawthorne Suites In favor of more marketing Would favor reallocation, but would approve tax increase if needed. More advertising for hotels that are not on the beach Mr. Staros indicated that the Ritz in Naples spends $6 million per year on advertising and marketing. Discussion regarding how much money is actually needed. Mr. Wert indicated that $3 million is the targeted number to build a really strong campaign. Build the awareness through destination marketing. Increase better presence in print and partner with hotels to double exposure in publications. Mr. Wert returned to the slide presentation: - Discussion over increased tourist tax revenue projections - More money will come into each of the categories with the tax. increase (see handouts) - Everyone will benefit from increased advertising and promotion Discussion over the value of advertising and exploring new opportunities. New opportunities include television beyond Florida, sports marketing, trade shows, international representation, print, cultural and signature events (i.e. - jazz festival), new and emerging markets, on-line promotion and translations of materials into more languages. Jim Gunderson, Manager of the Naples Beach Club - Suggested that museums raise their own money. Not in favor of tax increase at this time. Heidi Ashton, county attorney - Discussed administrative cost allowed under the statute and increase of allocation of the fourth penny (four percent tax) as revenue minus the cost. TDC Recommendations: Provide money to museums for promotion only. Operating expenses to come from general fund/grants, etc. (This cut in operating costs would yield approx. 1.3 million in additional funds for marketing and advertising for the TDC.) Review "Category C" funding- county and non-county Palm Cottage and Botanical Gardens funding will remain in place for FY 2004. Discussion regarding getting this topic on the BCC agenda for March. Mr. Wert indicated that ordinance will need to be rewritten. B. Public Information Campaign Mr. Wert explained the campaign. - Currently scheduled now through April 2005 in conjunction with the engineering contract to renourish the beaches. The purpose is to educate the public about what is happening when and where regarding public beach renourishment. Concerns over how this will be funded. Currently slated to be approx. $56,000. If project is not funded, how will information be disseminated? TDC Recommendations: Incorporate the information into Town Hall meetings and have in-house person maintain Web site. Not necessary to pay someone to do news and press releases. Naples Daily News can cover meetings, etc. Suggested altering the proposal for less money. New Business None. VI. Announcements None. VII. Next TDC Meeting scheduled for February 23, 2003- County Commission Chambers Adjournment There being no further business for the good of the County, the meeting was adjourned by order of the Chair at 3:15 PM. Collier County Tourist Development Council Chair, Ms. Donna Fiala