Agenda 01/27/2009 Item #10H
Agenda Item No, 10H
January 27, 2009
Page 1 of 5
EXECUTIVE SUMMARY
Recommendation that the Board of County Commissioners approve the
redirection of a portion of FY 09 budgeted tourist tax funds from off-season
to in-season advertising and promotion up to $200,000.
OBJECTIVE: For the Board of County Commissioners to approve the recommendation
of the Tourist Development Council and the local tourism industry to shift some
budgeted tourist tax dollars to increase in-season (February-April) advertising and
promotion.
CONSIDERATIONS: A view of the economic forecast for 2009 finds the U.S,
economy in a recession and the State of Florida's economy in a decline, especially in the
real estate and development industries, Collier County's cconomy is also showing a
number of signs of being depressed. The visitor industry is a mixed picture with S. W.
Florida showing some growth and other destinations are showing consistent declines in
visitation. Fuel prices are down for now but will surely rebound this summer. Our
international visitation continues to grow from Germany and the UK, but in the first few
weeks of 2009, the tourism industry is seeing a number of corporate group meetings
cancel and meeting planners asking to renegotiate their contracts.
Collier County tourism industry leaders are concerned as they see first quarter pre-
booking well behind the 2007 high season. The local economy depends on high season
revenue to sustain the balance of the year. We have met with the Collier hoteliers,
attraction, retail and restaurant owners and wc have attended numerous economic forecast
conferences. We have also participated in Florida government meetings concerning state
budget deficits and seen VISIT FLORIDA, our state tourism office funding substantially
cut.
The local tourism industry is very concerned and is requesting that we re-evaluate our
2009 marketing plans and consider a refocused first quarter 2009 effort in our major
feeder markets in the Northeast and Midwest. They are also asking us to intensify our on-
line marketing efforts and to refocus our Public Relations efforts to encourage travel in
difficult economic times,
Staff has analyzed our planned media purchases and has decided that the group market
will not improve for some time, So we plan to refocus some of our meetings market
media to first quarter leisure market opportunities. We will intensify our advertising
funds to the Northeast, primarily the New York Metro area and in the Midwest primarily
in the Chicago Metro area. The expanded campaign will include cable and local network
television, e-blasts, digital social marketing, and a special winter promotion offer called
"Paradise Priced Perfect". We will solicit offers from our hotel and attraction partners,
possible airlinc partners and create a new micro web site to support the promotion.
Agenda Item No, 10H
January 27, 2009
Page 2 of 5
We will cancel or delay insertions in some niche publications, international print and on-
line opportunities. This will save about $200,000 and we are suggesting we re-invest
those funds in the New York and Chicago metro markets using cable TV, newspaper on
line sites and www,weather.com during the coldest part of the northern winter. The
attached spreadsheet outlines these shifts in media dollars during the fIrst quarter of2009,
Our tourism Ordinance # 92-60 indicates that our marketing efforts will "encourage
tourism with an emphasis on off-season visitors", so this shift is not in conflict with the
spirit of that Ordinance. We will still have the majority of our advertising and promotion
directed in driving spring, summer and fall visitation.
This refocus concept was discussed at the Joint Workshop of the County Commission
and the Tourism Development Council on January 20, 2009 and it was recommended that
this be reviewed by the TDC and the County Commission before implementation. The
TDC is to review it on January 26,2009,
FISCAL IMPACT: $200,000 is in the approved tourism department budget for FY 09
and is simply being redirected to an earlier time period.
LEGAL CONSIDERATIONS: This item is legally sufficient for Board action. This is
a non-quasi judicial matter requiring simple mqiority vote. ~JAK
GROWTH MANAGEMENT IMPACT:
Management plan with this action
There IS no impact to the Growth
RECOMMENDATION: For the Board of County Commissioners to approve the re-
allocation of off season tourist development tax dollars to fIrst quarter 2009 marketing in
an amount up to $200,000.
SUBMITTED BY: Jack Wert, Tourism Director
Item Number:
Item Summary:
Meeting Date:
Page 1 of 1
Agenda Item No, 10H
January 27, 2009
Page 3 of 5
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
10H
Recommendation that the Board of County Commissioners approve the redirection of a
portion of FY 09 budgeted tourist tax funds from off-season to in-season advertising and
promotion up to $200.000 (Jack Wert. Tourism DIrector)
1/27/20099:0000 AM
Prepared By
Jack Wert
County Manager's Office
Tourism Director
Date
Tourism
1/20/20094:54:40 PM
Approved By
Jack Wert
County Manager's Office
Tourism Director
Date
Tourism
1/20/20095:12 PM
Approved By
Jeff Klatzkow
County Attorney
Assistant County Attorney
County Attorney Office
Date
1/21/20098:41 AM
Approved By
OMS Coordinator
County Manager's Office
OMS Coordinator
Date
Office of Management & Budget
1/21/200911:51 AM
Approved By
Mark Isackson
County Manager's Office
Budget Analyst
Office of Management & Budget
Date
1I21/200911:59AM
Approved By
James V. Mudd
Board of County
Commissioners
County Manager
Date
County Manager's Office
1/21/20091 :32 PM
file:IIC:\AgendaTest\Export\ 122-January%2027,%202009\ 1 O,%20COUNTY%20MANAGE... 1/21/2009
Agenda ItEm No, 10H
January 27.2009
Page 4 of 5
ANNUAL VISITATION ORIGINS
# of Visitors
2008 ~%
Florida 516,639 -4.0
Southeast 100,027 -2.1
Northeast 249,706 +0.1
Midwest 248,073 +0.5
Canada 35,896 +6.8
Europe 187,790 +32.8
US Opp. 75,629 -8.0
Mkts.
TOTAL 1,413,760 +1.4
The Northeast US Market is dominated by the New York Metro area and is the # I feeder
of visitors to Collier County in the first quarter and on an annual basis,
The Midwest US Market is dominated by the Chicago Metro area and is the # 2 feeder
market to Collier County in the first quarter and on an annual basis.
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