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TDC Minutes 04/15/2025MINUTES OF THE COLLIER COTJNTY TOURIST DEVELOPMENT COUNCIL MEETING BOARD OF COLTNTY COMMISSION CHAMBERS Naples, FL - Aprit 15, 2025 LET IT BE REMEMBERED the Collier County Tourist Development Council, in and for the County of Collier, having conducted business herein, met on this date 9:00 a.m. in REGULAR SESSION at 33299 Tamiami Trail East, 3'd floor, Naples, FL 341l2 with the following members present: Commissioner Chris Hall, Chair Clark Hill, Vice Chair Susan Becker Nancy Kems - excused Bill Kramer-arrived 9: I 1am Laura Radler Michael McComas Councilor Darrin Palumbo Edward (Ski) Olesky -excused ALSO PRESENT: Jay Tusa, CVB, Tourism Director Colleen Green, Collier County Attomey's Office, Managing Assistant County Attomey Buzq F ord,, Collier County, Digitat and Social Media Coordinator Andrew Miller, Collier County, Coastal Zone Manager John Melleky, CVB, Arts and Culture Manager Sandra Rios, CVB, PR & Communications Manager Kristen Murphy, Paradise Advertising, VP Client Services & Partner Development James Brendle. Downs & St. Germain, Project Manager, ZOOM Any person who decides to appeal a decision of the Tourist Development Council will need a record of the proceedings pertaining thereto, and lherefore may need to ensure lhol a verbatim reconl of the proceedings is made, which record includes the teslimony and evidence upon which the appeal is lo be based, Neilher Collier Coun! nor lhe Tourist Development Council shall be responsible for providing this record. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL 1 2 ., 1 MINUTES OF THE COLLIER COUNTY TOURIST DEVELOPMENT COUNCIL MEETING BOARD OF COUNTY COMMISSION CHAMBERS Naples, FL - April 15, 2025 LET IT BE REMEMBERED the Collier County Tourist Development Council, in and for the County of Collier, having conducted business herein, met on this date 9:00 a.m. in REGULAR SESSION at 33299 Tamiami Trail East, 3'd floor, Naples ,FL 34112 with the following members present: Commissioner Chris Hall, Chair Clark Hill, Vice Chair Susan Becker Nancy Kems - excused Bill Kramer-arrived 9: I I am Laura Radler Michael McComas Councilor Darrin Palumbo Edward (Ski) Olesky -excused ALSO PRESENT: Jay Tusa, CVB, Tourism Director Colleen Green, Collier County Attorney's Office, Managing Assistant County Attomey Buzzy Ford, Collier County, Digital and Social Media Coordinator Andrew Miller, Collier County, Coastal Zone Manager John Melleky, CVB, Arts and Culture Manager Sandra Rios, CVB, PR & Communications Manager Kristen Murphy, Paradise Advertising, VP Client Services & Partner Development James Brendle, Downs & St. Germain, Project Manager, ZOOM Any person who decides to oppeal a decision of the Tourist Developmenl Council will need a record of lhe pruceedings perlaining thereto, and therefore may need lo ensure that o verbstim record of tlte proceedings is made, which record includes the testimony and evidence upon which the appeal is lo be based, Neither Collier County nor lhe Tourisl Development Council shall be responsiblefor providing this record. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL I 2 2 1 4. AGENDA Clark Hill motioned to approve the Agenda Susan Becker seconded Molion passed 6-0 4a. APPROVAL OF MINUTES MAR. 14,2025., MEETING Laura Radler motioned to approve the Minutes Clark Hill seconded Motion passed 6-0 5. TOURISMDIRECTORREPORT Jay Tusa 1. Revenue & Room Occupancy o TDT Collections: $6,466,17 4 in February; YTD (Year-to-date) total is $16,701,744. r Occupied Room Nights: Down 2.8%o YoY, but when adjusted for the leap year, daily occupancy rose 0.6010. o ADR (Average Daily Rate): Decreased 5.9oh YoY . o RevPAR: Down 8% from February 2024. 2. Visitor Spending & Economic Impact r Visitor Direct Spending: Decreased 4.4%.YOY o Total Economic Impact: Declined 4.7%o, partly due to the shorter month (Leap Year in 2023\ 3. Intemational Visitation Trends . Overall intemational visitation fell 3% YoY.. Canada: Visitation dropped 23o/o, attributed to tariffs, increased border scrutiny, economic concems, and a weak CAD. Still, Canadian tour operators report no mass cancellations, just delays.o UK & Ireland: Florida remains a preferred destination; no major geopolitical concems affecting travel. o Germany & Benelux: Mixed results; some operators shifting to Canad4 while luxury operators maintain steady U.S. traffic.o IPW Interest: Remains strong with 270+ tour operators registered. 4. Group Meetings & Events . CVV Lead Volume (Ql 2025): Down 25Vo YoY, primarily postponements, not cancellations.o Example: A group spanning Canada and Mexico postponed to next year. 5. Air Travel & Capacity o RSW Airport: Performing well with improved load factors and positive forward bookings. o Air Canada made aircraft adjustments to smaller capacity planes, but no major service schedule cuts. o Domestic Air Seat Capacity: Up for summer compared to last year; passenger volumes stable.o Summer is looking soft, especially for weddings and small events, but no major red flags. 2 6. Outlook o While some segments are softening, the overall outlook is cautiously optimistic. o Continued engagement with local and intemational partners to monitor and respond to trends. Chris Hall Asked whether the decline in Canadian travel is as dramatic as portrayed in the media. Jay Tusa Clarified that while other parts of the U.S. may be experiencing more significant declines, local impact has been less severe. The region remains an attractive destination for Canadian travelers despite broader geopolitical concems. 6. None CONSENT AGENDA 7. NEWBUSINESS 7.A. Recommendation to approve a work order with CSA Ocean Sciences, Inc., to continue the required post-construction hardbottom monitoring for the Collier County Beach Nourishment Project in summer 2025 for time and materials not to exceed $487,367.52 Tourist Development Tax funds under Professional Services Agreement No.22-8015, authorize the Chairman to execute the Work Order, and make a finding that this item promotes tourism (Fund 1105, Project No.90033). (202s-ll8l) Jay Tusa introduced two Coastal Zone Management items, with Andrew Miller, Coastal Zone Manager, presenting. Andrew Miller, Coastal Zone Manager Provided highlights of the first item. Laura Radler Inquired whether the project was a continuation; Andrew Miller confirmed it is an annual permit-required effort. Laura Radler motion to approve Darrin Palumbo seconded Molion passed 6-0 7.B. Recommendation to approve a Work Order in the amount of $11,977 Ardaman & Association Inc., under contract No. l8-7 432-TE for Sediment Compliance Criteria Testing J Service for the Park Shore Beach Renourishment Project and make a finding that this expenditure promotes tourism. (Fund 1105, Project No. 90067) (202s-l183) Andreu !liller Testing is required by FDEP permit to veriry that the beach sand (which comes from the lmmokalee Mine) meets compliance standards. The consultant used is Ardaman and Associates. Clark Hill Commented on the multiple stages oftesting and asked iftesting is also done before sand placement. Andrew Miller confirmed that testing occurs o At the mine (initial screening), . During delivery (each truck is visually inspected, and samples bagged), . After placement (scientific core sampling analyzed by Ardaman, including sieve analysis, color test, shell content, and grain size). Chris Hall Questioned the need for repetitive testing Andrerv Miller Explained that mine testing alone would be a conf'lict ofinterest, and the scientific testing is more rigorous and necessary to meet FDEP standards. Susan Becker asked about timeline changes from March 31 / April I to April 30th Andrew Miller Clarified that the sand placement was completed in late March, and cleanup tasks. like those at Horizon Way, are also done. While construction is finished, final testing remains and will be completed once samples are collected and sent for analysis. Chris Hall Asked ilthe testing is required by contract or was self-imposed Andrew Miller responded that it is mandated by FDEP permits, which include extensive compliance requirements, especially as FDEP funds 42%o of the projects. a 4 Chris Hall acknowledged that the explanation made the cost easier to justily. Michael McComas motioned to approve the recommendation Chris Hall seconded Motion passed 6-0 8. None Ot,D BUSINESS 9. None 'IEN.MINI.Jl'E BRIAK 10. None PRESENTA'I'IONS 11. AGENCYPARTNERREPORTS James Brendle, Project Director, Downs & St. Germain o Leap Year Impact: February had an extra day. slightly distorting figures. The reported 4.8% drop in visitation is closer to 1-l .5% per day. o Visitor Trends: o Fewer visitors overall, but longer stays, resulting in a slight increase in visitor days. o Economic impact and direct spending dropped by 4.5-5Yo to $308M and $426M, respectively. o Room nights fell by 2.8%. o Occupancy dipped2.3%. Average Daily Rate (ADR) is high at $450 but dropped 6%o YoY.leading to an 8% decline in RevPAR. o l l otcl Intlustrl': 150% increase in room supply, outpacing the l2o/o increase in room demand, which makes maintaining occupancy harder. o o . I ntrrnationa I 'l'ravel: c Small decline in Canadian visitation. Broader intemational visitor sentiment is cautious, with more delays than cancellations. Canadian travel agencies report 70-900 sho(-term drops, largely from postponed travel rather than cancellations. o Tourism Economics revised its intemational visitation forecast f'rom +gyo to - 10Yo in2025. a Consumer Sentiment: April's sentiment index was 5l . the second lowest on record (20- year average is 80), indicating short-term spending hesitation. o VisitorDemographics: o More couples, fewer families. o Higher median household income among visitors. o Fewer day-trippers ([ess economic impact lost). o Visitor satisfaction remained high. o Forward-Looking Data (March-May Forecast): o Most industry partners report bookings as same or down compared to last year. o Only abort 22o/o say bookings are up. o The data isn't fully comparable due to the post-Hurricane Ian recovery period in 2023. r Outlook: While February marks the first month of YoY declines. fiscal year-to-date numbers are still positive. o The team remains cautiously optimistic long-term, while acknowledging short- term uncertainty. Clark Hill Asked for clarification on the definitions of short-term and long+erm. James Brendle o o o 6 a Short-term vs. Long-term Definitions: o Short-lerm: Next few months to six months (remainder of 2025). a Long-term: One year and beyond (2026 and later). Laura Radler Asked about predictions lor domestic travel. particularly considering expected decreases in intemational travel. .Iames llrend le o l)omestic vs. Intcrnational Travcl: Intemational travel from the U.S. is expected to set record highs this year due to post-COVID normalization. as many Americans are eager to travel abroad. This may result in fewer domestic travelers, but economic uncertainty and the value of the dollar may cause some visitors to stay closer to home. o Predictions suggest an increase in regional and in-state visitation, with a decrease in intemational visitation lbr 2025. Laura Radler Inquired about trends in different market segments, including luxury and mid-scale. James Brendle Market Segments: o o a o Luxury travel is expected to be less impacted by the economic do\4ntum, as higher-income households tend to pret-er luxury accommodations. o Brendle will further investigate market segments and provide additional insights. Dean Palumbo Asked about the uniqueness ofthe current economic situation, questioning whether this is uncharted territory or ifhistorical trends can still apply. ,lamcs Ilrcndle 7 a Economic Impact and Historical Trends: People continue to prioritize travel, suggesting a cautiously optimistic outlook fbr the long-term, despite short-term pullbacks. Clark Hill e lnquired about any data on business travel trends post-pandemic James Brendle o Business Travel: Group demand (which includes business and event travel) was q 23.4tYo in February, buoying overall demand for hotels. While overall business travel has decreased post-pandemic due to remote work trends, Collier County shows strong group travel perfbrmance compared to peers. No significant signs ofa downward trend in group travel, and business travel may be less affected. Jay Tusa Introduced Kristin Murphy from Paradise Advertising to provide a web and marketing update. Kristin Murphl' Ad Effectiveness Study: In collaboration with Downs & St. Germain. an ad effectiveness study is underway. A question about why some people are not considering Naples, Marco Island, and the Everglades was added to better understand factors like economy, climate, and safety concems. Business Travel Forecast: Business travel is expected to be less affected. but associations may scale back due to budget concems, though luxury travel remains strong. o o o o a a a 8 o 'I-rcnds in Tral'el: o Although the cunent situation (post-COVID recovery, hurricanes, tariffs, etc.) is unique, historical trends show that economic conditions often revert to the mean. . Summer Travel & Marketing: Summer travel is expected to remain strong, with a focus on strengthening advertising in the Southeast, especially Florida. The trend of people traveling closer to home is being considered in targeting efforts. Economic uncertainty is impacting middle-income travelers. but luxury travelers are expected lo continue traveling. AI tools like Google Gemini and ChatGPT are influencing trip planning, which underscores the importance of up-to-date, robust websites. Wellness and lifestyle trends are corning back strong. Many Americans are planning intemational travel, but fewer are coming to the U.S. due to "revenge travel" abroad, though domestic destinations like New York, Vegas. and California are seeing strong interest. a Marketing Strategy: The strategy is flexible and nimble, lbcusing on continuous research data to inform advertising and campaign efforts. Focus group feedback emphasized interest in arts and culture, which will be incorporated into targeted marketing campaigns. The marketing team is tracking competitor data and adjusting ad strategies to ensure differentiation. o o o o o o a Currcnt Advertising Results: $500,000 was spent on leisure advertising in March in expanded and enhanced markets. The expanded markets are performing exceptionally well, with a retum on ad spend of$80 lbr every $l spent on platforms like Expedia. Enhanced markets are performing strong as well. with a retum of $30 for every $l spent. Overall, the retum on ad spend is approximately $17 per dollar spent. which is expected to grow as bookings conlinue from ads served in March. A.iB testing is being conducted daily to optimize creative. headlines, and images for the best performance. o o o o o Chris Hall: . Appreciation and Positivity: Commissioner Hall expresses his appreciation fbr the presentation, particularly praising the positive attitude and outlook. He comments on the importance of staying positive and compares it to choosing between a conlerence in Minneapolis or one in Naples. with the latter being the more attractive option. He also I o Shorter booking windows are emerging as a trend, with more people cashing in on travel reward points, especially for summer travel. a appreciales the creativity shown in the marketing approach Quality Over Quantity: He shares a metaphor about an old-town barber. The old barber's response to a competitor's cheaper haircuts was to advertise "we fix six-dollar haircuts," highlighting the importance of quality over quantity. Chris relates this to the luxury audience, stating that they are willing to pay more for excellence, which is what the region delivers across various sectors like culinary experiences and outdoor adventures. Kristin Murphp: Website Management: Kristin explains that Paradise Advertising is managing the current website while collaborating with Granicus to launch a new website. There's a balancing act between investing in the currenl site and focusing on the new one. They're only updating the current site when necessary, and the goal is to ensure that updates align with the ongoing work for the new website. a Campaign Results and Website Performance: She shares the performance metrics fbr March. including: o 460/" increase in sessions l27o increase in engaged sessions o 45oh increase in users r' 1{oh increase in views. These positive trends suggest thal the additional marketing spend, parlicularly in expanded and enhanced markets. is working effectively. o Top Page Views and Locations: Kristin notes that the top pages viewed on the site are beaches, the homepage, and landing pages driven by the content created (not ads). She also mentions a surprising finding: the top locations for visitors include St. Louis and Ashburn (DC area). This is a result ofongoing marketing efforts targeting these regions They'll continue to monitor these trends closely. o Looking Ahead: She expresses anticipation fbr diving deeper into the March website data in the next month's presentation, expecting to gather more insights to guide lurther marketing decisions. a o 10 Jay Tusa Lou Hammond Group PR Update: No one lrom Lou Hammond Group is on Zoom to provide a PR update. As a result. they will get an update from them at the nexl meeting. I2. TOURISM STAFF REPORTS I.1. COUNCIL MEMBER DISCUSSION Susan Becker o 3rd Street Farmers Market: The oldest in the area, it draws hundreds of people every Saturday from 7:30 AM to l1:30 AM during the winter. The market is held on Third Street from the 1200 to and 1100 blocks until the end of April. Afterward, it moves behind Tommy Bahamas in the parking lot but continues year-round. It remains a significant community event in both winter and sufilmer. Darrin Palumbo Praised FC Naples for their undefeated season, leading the division, and emphasized how special it is to witness their success. Bill Kramer o The City Council had a l0-hour workshop about fireworks, focusing on logistics and staff support. The goal is to hold New Year's fireworks (but not on New Year's Eve), and Coach Kramer emphasized prioritizing safety and health. He mentioned concems from residents about past fireworks events causing issues such as crowded yards and obstructed driveways. The final decision on the timing and day ofthe fireworks is pending negotiations. Clark Hill . Tourist Development Tax Collections: Raised a question about a discrepancy in the total amount oftax collections in the fiscal year-to-date report ($18,682,218) compared to the tax revenue repon (516,701,744). He asked for clarification on the difference. a a 11 o Amanda Townsend Update: Amanda Townsend is not able to join the meeting due to a kickoff contractor meeting lor the Naples Depot Museum. This is positive news, and Amanda will provide an update at next month's meeting. (lhris Ilall o The figures are approximately $17 million. .Iohn Melleky, Arts and Culture Manager Ctarified that the reports come from two different offices. He assured that the issue would be investigated, and a response would be provided next month. I -1.NEXT MEETING DATE May 20.2025 I5. ADJOURNED There being nofurther business for the good of lhe Counly, lhe Tourist Development Council meeling wos adjourned ot 9:53 am. COLLIER COUNTY TOURIST DEVELOPMENT COUNCIL These Minutes were approved oirman Chris Hall (date.1 5 -7.0 -15 as presented or amended o V