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Agenda 05/25/2010 Item #10B EXECUTIVE SUMMARY Agenda Item No. 10B May 25.2010 Page 1 of 27 Recommendation to accept the Return on Investment (ROI) report on the enhanced tourism marketing program in the 1st Quarter 2010 using funds transferred from Catastrophe and Major Beach Renourishment Reserves. OBJECTIVE: Review the report on the ROI ofthe redirection of funds for marketing in FY 10. CONSIDERATIONS: On December I, 2009, the Board of County Commissioners unanimously approved (5-0, Item 16F4) additional tourism promotion funding from Catastrophe and Major Beach Renourishment Reserves (Fund 195). The additional funds were to help Collier County react to the world-wide economic downturn and attract new and repeat visitors to our community. These additional funds were to be added to previously approved emergency advertising funds and prior year carry forward funds to assist the Convention & Visitors Bureau (CVB) to expand and extend their destination marketing, research and promotional efforts to a more year-round effort. At that time, the BCC requested that the results of the investment of those additional advertising and promotion funds be reported back to the BCC in May 2010. The attached PowerPoint presentation outlines the results ofthe new marketing efforts that were funded by that transfer of funds. Staff is requesting that the BCC review the results ofthe first quarter 2010 campaign. We plan to return to the BCC prior to the start of FY ] I to discuss a similar campaign and reinvestment of funds. By that time staff will have an opportunity to assess the potcntial impacts of the Deep Horizon spill, the summer Hurricane season and our efforts to obtain FEMA reimbursements for expenses incurred during prior hurricane events. FISCAL IMPACT: There is no fiscal impact of this report review at this time. GROWTH MANAGEMENT IMPACT: There is no impact to the Growth Management plan from this action. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney's Office and is legally sufficient for Board Action- CMG ADVISORY BOARD RECOMMENDATIONS: The TDC recommended in October of 2009 the transfer of $1 million per year for two years to offset the world-wide economic downturn and promote Collier County year-round as a destination of choice for vacationers and meeting attendees. They will review the ROl report at their May 24, 201 0 meeting. The Coastal Advisory Cornnlittee (CAC) met on August 13, 2009 and voted 6-2 to oppose the redirection and reallocation of beach reserve funds. RECOMMENDATION: That the Board of County COlIUnissioners reviews the Return on Investment (ROl) report on the enhanced tourism marketing program in the 1st Quarter 2010 using funds transferred from Catastrophe and Major Beach Renourishment Reserves. PREPARED BY: Jack Wert, Tourism Director Agenda Item No, 10B May 25, 2010 Page 2 of 27 ,--. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS Item Number: Item Summary: 10B Recommendation to accept the Return on Investment (ROI) report on the enhanced tourism marketing program in the 1 st Quarter 2010 using funds transferred from Catastrophe and Major Beach Renourishment Reserves (Jack Wert, Tourism Director) Meeting Date: 512512010 9:00:00 AM Prepared By Jack Wert Director ~ Tourism Date T ou rism Tourism 5/13/20104:14:40 PM Approved By Jack Wert Director ~ Tourism Date Tourism Tourism 5/13/20104:26 PM Approved By Colleen Greene Assistant County Attorney Date County Attorney County Attorney 5/14/20108:43 AM Approved By OMS Coordinator Date County Manager's Office Office of Management & Budget 5/14/20103:09 PM Approved By Jeff Klatzkow County Attorney Date 5/14/20103:23 PM Approved By Leo E. OChs, Jr. County Manager Date County Managers Office County Managers Office 5/'19/20101:52 PM OJ CJ':J -1"'""1 '\j ro rJ.-.c ro 0.... .. ~~ ~:. Cl.J ...0 ~:. I.D N tR- I:--. 0\ II') LC C"'? 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I P! ~ j .!2' I co N ChI @ ! .... r--. \G .." ... ... r--. ... ~ IS 1 eft .... C ~ E Cl co \G a ~ :. N N ChI * * * 01 .... . .... ! r-.. .." .." r-.. ,--. fO ~ ... .s r--. \G ~ N Cl.!'""i I- S Cl r--. .." I!I ... ... N'" ..,,'" ,- .... .... E~ > "CI \G r--. r-.. Cl - &; '" Lft r-- c COt'\l B ... ",,'" ... C' Q. eft P! ~ Jj * * * N U * L ~ CV €I) a... cu ;:: . IiiIIiIiIlIIIir ~ IIIiIiIliIllIII ~ ..... ~. '-l 0 cu ~ Z '" U ......... .- ~ ~ ..c: ~ c. 0 - ts 0 CD ,'--' >- eft "'0 0.. <<J - ~ u '" B ~ - .- .- CD ..c ..c 0 Z u a.. l- i : a; C/) . .....c '"0 co ~ co O-c . Agenda Item No, 10B May 25.2010 Page 25 of 27 EXECUTIVE SUMMARY Recommendation that the Board of County Commissioners approves a Budget Amendment in the amount of $1 ,000,000 pursuant to Ordinance 2009-58 increasing the adopted budget for tourism promotion, advertising and marketing as appropriated within Fund (184). OBJECTIVE: Increase the adopted budget for tourism marketing, promotion and advertising consistent with previous action by the Board of County Commissioners. CONSIDERATIONS: The Board of County Commissioners discussed on October 27, 2009 and approved on November 10, 2009 - pursuant to Ordinance 2009-58 - the transfer of $1,000,000 from Fund (195) catastrophe and beach renourisment reserves to tourism marketing and promotion Fund (184). This movement of funds is for one year and is intended to support promotion and advertising during this current economic downturn. The following table provides a description of the adopted and amended operating appropriations as proposed for FY 2010 within Tourism promotion advertising Fund (184). Appropriation Object FY 2010 Adopted FY 2010 Amended Variance Code Description Budget Budget - Proposed Other Contractual - $6,000 $6,000 $0 Tourism Research Other Contractual $1,416,200 $1,641,200 $225,000 Services - Contracts for public relations, local media, research, oversees media consulting and various marketing support expenses Out of County Travel $95,300 $95,300 $0 PostaQe and FreiQht $2,000 $2,000 $0 Insurance General $16,700 $16,700 $0 Printing $25.000 $25,000 $0 Marketing and $2,173,000 $2,948,000 $775,000 Promotion - Paid Advertising and Production including ,..Paradise Advertising, Press Release Distributions, Individual and Group FAMS, Video Releases Dues and Memberships $158,800 $158,800 $0 Total $3,893,000 $4,893,000 $1,000,000 Agenda Item No, 10B May 25, 2010 Page 26 of 27 New Fall Southeast Florida Leisure Campaign Markets: Miami/Ft. Lauderdale and West Palm Beach . Timing: November 2009 Spot Television: Early Morning "Roadblock" across ABC, CBS, NBC & Fox Networks Monday - Wednesday; 1 commercial per hour airing from 5-9 am Cable Television Monday - Wednesday; 6 PM to Midnight Primetime Enhanced Winter Leisure Campaign Addition of Philadelphia Enhanced schedule in Chicago Enhanced schedule in New York TOTAL Enhanced Media Timing: January - March, 2010 Media: Early Morning "Roadblock" across ABC, CBS, NBC and FOX Cable television to add primetime timeframe for additional reach Online marketing on weather-related channels to add continuity of message delivery Digital Marketing to include social, mobile, interactive digital media TOTAL MARKETING AND PROMOTION ENHANCEMENTS $775,000 $117,000 $275,000 $187,500 $195,500 $658,000 · Additional Marketing Projects To Include: Visitor Center Coordinator Position (Chamber Employee split funded with Tourism)$ 50,000 Consolidated Visitor Guide (Destination Guide combining Chambers and CVB publications Sales Familiarization Tours & Events PR Media Event in New York Consumer & Inti. Website Enhancements Enhanced ROI Research Studies TOTAL ADDITIONAL PROJECTS $ 50,000 $ 25,000 $ 25,000 $ 50,000 $ 25,000 $225,000 FISCAL IMPACT: A budget amendment in the amount of $1,000,000 will be necessary to move funds from Fund (195) Beach RenourishmentlPass Maintenance reserves to the appropriate object codes within Tourism Promotion and Advertising Fund (184). GROWTH MANAGEMENT IMPACT: There is no impact to the Growth Management Plan with this action. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney's Office and is legally sufficient for Board action. - CMG Agenda Item No, 10B May 25, 2010 Page 27 of 27 RECOMMENDATION: That the Board of County Commissioners approves a budget amendment in the amount of $1,000,000 transferring funds from Fund (195) Beach RenourishmenUPass Maintenance reserves to the appropriate object codes within Tourism Promotion and Advertising Fund (184), SUBMITTED BY: Jack Wert, Tourism Director