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Agenda 02/11/2025 Item #16F 6 (One-year renewal of Contract #22-7980 the Tourism International Representation Germany Market w/Diamonde e.K)2/11/2025 Item # 16.F.6 ID# 2025-363 Executive Summary Recommendation to approve a one-year renewal of Agreement No. 22-7980 “Tourism International Representation - Germany Market” with Diamonde e.K. for Flat Annual Fixed Price of $120,000 ($10,000 per month), and Reimbursable Expenses for Travel, Registrations and Miscellaneous for up to $60,000 totaling $180,000 annually using tourist development tax funds and make a finding that this action promotes tourism. OBJECTIVE: To renew Agreement No. 22-7980 for one year for tourism representation services in Germany market which promotes Collier County as a worldwide visitor destination. CONSIDERATIONS: Collier County has been represented in Germany for 17 years by Diamonde e.K. based in Stuttgart, Baden-Wuerttemberg, Germany. Presence in that market has been beneficial in bringing German residents to Collier County. Over the course of this term and relationship, the German market has remained one of the top markets of international origin for Collier County. The representation in this market has attracted visitors via consumer direct initiatives, education, and relationships with tour operators and travel advisors about Florida’s Paradise Coast region (Collier County). The representation also includes integrated marketing campaigns across multiple media platforms to locally amplify the reach of the campaigns. On March 14, 2023 (Agenda item 11.C.), the Board of County Commissioners approved the award of Agreement No. 22-7980 for Tourism International Representation - Germany Market to Diamonde.e.K for one year and requested that the renewals be brought back to the Board for approval. On March 26, 2024 (Agenda item 16.F.5.) the Board approved the first of two, one-year renewal options. The contractor has agreed to exercise the second renewal option without price increases. The annual costs established in the Agreement are as follows: Flat Annual Fixed Price of $120,000 ($10,000 per month), and Reimbursable Expenses for Travel, Registrations, and Miscellaneous for up to $60,000, totaling $180,000 annually. The reimbursable expenses are approved by the Division Director before the expenditure occurs. Current expenditures total $126,810.89 for ten (10) months. This total does not include any other expenditures, or the monthly fee, for the last two months of the current Agreement. This representation is vital for Collier County to remain competitive with other Florida markets. Currently, twenty-four (24) Florida markets have representation/offices in Europe, including our competitive set of areas - Tampa, St. Pete/Clearwater, Orlando, Bradenton, Sarasota, Lee County, Charlotte County, Palm Beach, Miami, and the Florida Keys. Two important measures of the work completed by Diamonde e.K. were implemented to measure effectiveness. One is the number of hotel rooms booked by their top 20 Tour Operators. Many first-time visitors utilize tour operators for ease of travel to various locations in Florida and for the option to obtain travel insurance. In 2019, which is a benchmark used (2020 and 2021 are not included due to the pandemic), 16,973 room nights were booked in Collier County from these operators. In 2022, room nights were 10,748, in 2023 this grew to 15,854. In 2024 this grew to 23,193 an 45% increase in room nights over 2023. County staff has estimated the tax collections to further measure the effectiveness of the firm for these room nights utilizing the Average Daily Rate (ADR) obtained through STR data for the associated time frames. (Taxes = ADR * Hotel Rooms Booked * 5%). STR data provides weekly information about hotels in Collier County. The firm surveys our local hotels and provides weekly data such as Average Daily Rates, Occupancy, and Hotel Revenue per person. In 2019, with an ADR of $237, the tax collected was $201,494.97; 2023 saw an ADR of $303 and a tax collection of $240,342.86; 2024 saw an ADR of $349 and a tax collection of $404,718. The 68% increase of tax collection from 2023 to 2024 has resulted in a Return On Investment (ROI) of 237.27%. (($404,718 tax collections - $120,000 flat fee) / $120,000 * 100). Page 3050 of 3773 2/11/2025 Item # 16.F.6 ID# 2025-363 % REGION 2019 2023 2024 2023 vs 2024 GERMANY 16,973 15,854 23,193 45% TOTAL 16,973 15,854 23,193 45% Avg ADR $237 $303 $349 15% Est Tourist Tax $201,495 $240,323 $404,718 68% The second measure is based on the media relations coverage in the destination. Diamonde e.K. has worked to add earned (not paid for) media and placements. Earned media is obtained through public relations work and can include articles written in traditional print, broadcast, or social media. Earned media saw an increase of 32% from 2022 over 2023 (2022 earned media was $120,000 and 2023 earned media was $158,577). Additionally, the company’s 2023 social media measures include 47 posts with 210,000 impressions for all the posts. Based on Diamonde e.K’s performance and improving the measures for effectiveness, County staff is recommending renewing the Agreement for one year at the same pricing. ADVISORY COMMITTEE RECOMMENDATION: This item was approved unanimously by the Tourist Development Council on January 21, 2025, with a vote 8-0. FISCAL IMPACT: Funds for marketing services are provided in the FY25 Tourist Development Tax supported Tourism Promotion Fund (1101) budget. The annual contract budget is $180,000 for the German market. GROWTH MANAGEMENT IMPACT: There is no impact to the Growth Management Plan with this Executive Summary. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for approval. - CMG RECOMMENDATIONS: To approve and authorize the Chairman to execute a one-year renewal of Agreement No. 22-7980 “Tourism International Representation - Germany Market” with Diamonde e.K. for Flat Annual Fixed Price of $120,000 ($10,000 per month), and reimbursable expenses for travel, registrations and miscellaneous for up to $60,000 totaling $180,000 annually using tourist development tax funds and make a finding that this action promotes tourism. PREPARED BY: Jay Tusa, Tourism Division ATTACHMENTS: 1. 22-7980 DiaMonde_2of2_1YrRenewal1 w affidavit 2. Diamonde Contract 22-7980 3. TDC International Contract Renewal Page 3051 of 3773 Contract Renewal or Extension Request Form CONTRACT RENEWAL OR EXTENSION REQUEST FORM Contract #:Solicitation Title: Name of Requester:Division Name: Company Name:Name of Company Agent: Vendor Email:Vendor Phone Number: Current Term:Requested Term: SECTION 1a. APPLICABLE TO RENEWAL SECTION 1b. APPLICABLE TO EXTENSION Fill out the Renewal section if there are renewals identified and available per the contract. Ex: 1- 1 Yr. Renewal of 2 Fill out the Extension section if no renewals are identified in the contract or if all renewals have been exhausted. Ex: No Renewals/ Ext Available տ Request to Exercise 1st Renewal տ Renewal to Exercise an Evergreen տ Request to Exercise Administrative Extension (180 days) տ Request to Exercise 2nd Renewal տ Renewal Includes Price Increase* տ Request Extension Beyond the Administrative Extension (180 days) *If selecting this option, an Executive Summary must be provided with this form. տ Request to Exercise 3rd Renewal տ Increase Accepted by the Division* տ Request to Exercise 4th Renewal տ Other: ______________________ *The original solicitation document and/or resultant contract must contain a provision permitting price increases.Submit a new request ticket for "Contract Amendment" with supporting documentation accepted by the Division for any renewals with Price Increases. SECTION 2a. RENEWAL AFFIRMED SECTION 2b. EXTENSION AFFIRMED Project Manager/Contract Agent affirms the Vendor meets the following requirements: Project Manager/Contract Agent affirms the following requirements to extend: տ That the Contractor has performed in a satisfactory manner. տ The renewal is subject to the terms and conditions outlined in the initial contract. Cost and term modifications are addressed in the original solicitation document and/or resultant contract. տ That the renewal is done for a set period of time identified in the solicitation document and/or contract, commencing at the end of the contract period. Applicable only to Price Increases: տ The request for a price increase has been evaluated and the supporting documentation justifies the request. տ The extension period is identified in the original solicitation document and/or resultant contract. տ The extension period is for the same terms and conditions. տ The existing contract will be terminated upon issuance of the new contract without further notice. տ Any (non-blanket) Purchase Order that extends beyond the expiration date of the original contract will survive and remain subject to the terms and conditions of that contract until the completion or termination of the Purchase Order. 4600005707 International Tourism Rep - German Market Claudia Wood Tourism Diamonde Nataša Maniü natasa@diamonde.de +49 173 9957046 3/14/23 - 3/13/25 3/14/25 - 3/13/26 ✔ ✔ ✔ ✔ Page 3052 of 3773 SECTION 3. APPROVALS THE VENDOR HEREBY AGREES TO THE SAME TERMS AND CONDITIONS AND IS AN AUTHORIZED AGENT OF THE COMPANY WITH THE AUTHORITY TO EXECUTE THIS FORM ON THE COMPANY'S BEHALF. *If the signer is NOT an authorized agent listed on Sunbiz, please also submit a Corporate Resolution, Limited Power of Attorney, Secretary’s Certificate, or notarized letter from one of the listed principals giving that person signature authority. Project Manager/ Contract Agent Name and Date: Signature: Vendor – Authorized Signatory Name and Date: Signature: Procurement Director or Designee’s Name: Signature: Procurement Use Only տ Approved Renewal Term Approved Term: տ Approved Renewal Term with Price Increase Approved Term: տ Renewal Term with Price Increase is subject to Board Approval Date Board Approved: տ Approved Administrative Extension Term Approved Extension Term: տ Extension is subject to Board Approval Date Board Approved Term: Notes: Claudia Wood Claudia Wood Digitally signed by Claudia Wood Date: 2024.12.03 16:36:26 -05'00' Natasa Manic, December 3, 2025 Natasa Manic Digital unterschrieben von Natasa Manic Datum: 2024.12.03 22:54:51 +01'00' ✔3/14/2025- 3/13/2026 There are no renewals left, but 180-day extension available. *This renewal requires board approval* Page 3053 of 3773 Page 3054 of 3773 Page 3055 of 3773 Page 3056 of 3773 Page 3057 of 3773 Page 3058 of 3773 Page 3059 of 3773 Page 3060 of 3773 Page 3061 of 3773 Page 3062 of 3773 Page 3063 of 3773 Page 3064 of 3773 Page 3065 of 3773 Page 3066 of 3773 Page 3067 of 3773 Page 3068 of 3773 Page 3069 of 3773 Page 3070 of 3773 Page 3071 of 3773 Page 3072 of 3773 Page 3073 of 3773 Page 3074 of 3773 Page 3075 of 3773 Page 3076 of 3773 Page 3077 of 3773 Page 3078 of 3773 INTERNATIONAL REPRESENTATION CONTRACT RENEWAL Page 3079 of 3773 European Visitor Insights: Demographics: •High net worth •Luxury traveller •Plan 6 -18 months in advance Travel Patterns: •Visit during summer/fall •Multiple Florida location •Prefer to use tour operators and travel agencies for security and insurance International Representation Contract Renewal Page 3080 of 3773 Importance of International Representation Market presence: •Top of mind for tour operators, advisors and media •Consistency with all in-market travel trade •Brand USA, Visit USA Committee's and Visit Florida in-market collaboration Cost efficiency: •Extension of CVB Global Sales Team •Saves from country staff traveling overseas Competition: •24 Florida destinations have offices in Europe •Fort Myers, Charlotte County, Sarasota, Bradenton, St. Pete/Clearwater all compete for the 2/3 nights stay on the west coast alone International Representation Contract Renewal Page 3081 of 3773 International Representation Contract Renewal PARADISECOAST.COM4 45% increase in room nights from 2023 to 2024 68% increase in TDT ROI: 237.27% Page 3082 of 3773 International Representation Contract Renewal PARADISECOAST.COM5 4.0% increase in room nights from 2023-2024 19.8% increase in TDT ROI 256.47% Page 3083 of 3773 International Representation Contract Renewal PARADISECOAST.COM6 Benefits of renewing: •Demonstrated ROI •Continued competitive edge •Increased tourist development tax collection Page 3084 of 3773