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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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