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TDC Minutes 08/19/2025 (Draft) RevisedAugust 19, 2025 Page 1 MINUTES OF THE COLLIER COUNTY TOURIST DEVELOPMENT COUNCIL MEETING August 19, 2025 – 9:00 a.m. 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, 3rd floor, Naples, FL 34112 with the following members present: Commissioner Chris Hall, Chair Clark Hill, Vice-Chair Susan Becker Laura Radler Nancy Kerns Michael McComas (via Zoom) Edward “Ski” Olesky (excused) Bill Kramer Councilor Darrin Palumbo ALSO PRESENT: Jay Tusa, CVB Tourism Director Sandra Rios, CVB Public Relations Manager Colleen Greene, County Attorney’s Office Buzzy Ford, Digital and Social Media Coordinator Andy Miller – Coastal Zone Manager August 19, 2025 Page 2 Any person who decides to appeal a decision of the Tourist Development Council will need a record of the proceedings pertaining thereto, and therefore may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based, Neither Collier County nor the Tourist Development Council shall be responsible for providing this record. 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL A. Roll was taken by staff. A quorum was present with 7 in person, 1 via Zoom. Motion to approve Michael McComas to participate via Zoom approved 7-0. 4. AGENDA and MINUTES A. Clark Hill requested approval of the meeting agenda. Seconded by Nancy Kerns. Motion to approve the agenda and the minutes of the June 17, 2025, meeting Moved by Chairman Hall; Seconded by Clark Hill Motion passed 7-0 5. PUBLIC COMMENTS – 1) Mr. Scott Carr – spoke about advertising and transparency issues. He introduced himself and discussed concerns with the procurement of the new Paradise Coast website. He noted discrepancies from public records requests, including a denial of records by Collier County government for nearly two months (from June 18, 2015, to August 6). The contract was with Granicus through a cooperative agreement without a request for proposal, and an ongoing solicitation for a new website was canceled after the Granicus contract was signed. He flagged potential impropriety in the process, as the timing didn't add up with the county's stated goal of consolidating websites, Granicus is not a web development platform, and other proposals from companies like Paradise Advertising and Marketing and Simple View were ignored. He argued the county's claim of saving money was not factually correct. Transitioning to advertising, he noted the county's agreement with Paradise Advertising and Marketing appeared effective but highlighted issues in monthly reports, such as $660,000 in advertising spent with only $133,000 itemized, leaving $500,000 unaccounted for. Similar patterns in previous reports showed millions unaccounted for, and he encouraged the department to review accounts for granular data on spending. He requested to continue but was out of time. 2) Ms. Alicia Dawn – Spoke about grant funding. Extended details: As CEO of United Arts Collier, she thanked the council and emphasized arts marketing funding's importance, citing $147 million annual economic impact, 2,000 jobs, $29.4 million tax revenue. Cultural tourists spend 60% August 19, 2025 Page 3 more and stay longer. Additional funding targets high-value visitors for increased spending/tax revenue, supporting all arts organizations. 3) Ms. Muffy Clark-Gill – Spoke about grant funding. Extended details: As a local artist and Collier County Public Art Committee member, she supported United Arts Council's arts marketing funding efforts. Drawing from her marketing experience, she highlighted promoting Collier globally to attract international spenders, urging increased funding as Collier's is lower than other counties. 4) Ms. Danielle High – Raised concerns about marketing allocations, suggesting that more TDT funding should be directed toward beach maintenance and storm recovery. She stressed that the beaches remain Collier County’s number one attraction and must be preserved. 5) Mr. Justin Martin – Spoke in favor of the City of Naples Stormwater Outfall Pipe Removal Project, noting its importance for water quality and coastal sustainability. He emphasized that healthy beaches and clean water are vital to long-term tourism growth. 6) Ms. Meg Stephanian – Questioned the effectiveness of large-scale marketing expenditures and called for more transparency in measuring ROI. She urged the Council to prioritize projects with clear, measurable community benefits. Chairman Hall thanked all speakers for their input and confirmed their comments would be entered into the record 6. PRESENTATIONS A. There were no presentations on the agenda 7. TOURISM DIRECTOR REPORT A. Tourism Director Jay Tusa presented the TDT Tax Report. 1) Extended details: June 2025 TDT collections $3,285,486, YTD $40,127,443. Updated on department/industry: Introduced Tom Albrecht as new CVB Tourism Sales Manager (three weeks; oversees Northeast/Mid-Atlantic groups, sports). Lodging: Occupancy up 3.5% to 53.5%; ADR down 1.2% to $289.64; RevPAR up 2.3%. 2) New website launched July 31 on Granicus (county consolidation); enhanced homepage with hero images/video; monitoring/refining with Granicus; partner rollout soon; challenges like content transfer/links addressed. Displayed website components. Meetings/Group Sales: 95 RFPs, 10 bookings, $3.4M economic impact. Digital ROI: 8 campaigns, 63.7M impressions, 145,000 clicks, 2.6M August 19, 2025 Page 4 video views, $3.5M lodging revenue (5.31 ROAS). Social: +550 followers (Facebook/Instagram) via streams/coverage/reels despite slowdown. 3) Expedia: 4,300 room nights, $3.2M bookings, 5,000 airline sales. PR (Lou Hammond): 13 placements (Condé Nast Traveler, USA Today, Meetings Today, Southern Living), ~$200M value. UK (Omak): Hosted 4 journalists (Scottish Sun, Irish Daily Star, Sunday Post). German (Diamant): Sept-Oct FAMs for 16 agents (Switzerland/Netherlands, Sept 13; 100-150 high-end travelers); Dec luxury FAM (4 top-tier clients). 4) Florida Festival/Events Association: Arte Viva won 1st (print ad), 3rd (website) Sensational Awards; displayed awards, appreciated team effort. Motion by unidentified member, seconded by unidentified member. Motion passed unanimously. 8. CONSENT AGENDA 9. NEW BUSINESS A. Category A Grant Application – City of Naples Storm water Outfall Pipe Removal Project 1) City of Naples Stormwater Outfall Pipe Removal Project. Tourism Director Tusa introduced; Bob Middleton presented. Extended details: Recommendation for reimbursable grant up to $10,000,000, finding it promotes tourism. Bob Middleton provided aerial view of project area, showing 8 existing outfall pipes in gravity system discharging from Gulf Shore Boulevard basins to Gulf at shoreline. Work on Gulf Shore (north to Naples Beach Club) and 3rd Street; dredging North/South Lake to remove 50-60 year sediment, reducing nutrients/increasing volume for water quality. 2) Water discharges to 54-inch pipe to pump stations at 3rd/8th Ave North; pressurized system eliminates gravity/tide issues. Twin 30-inch pipes extend 1,500 feet offshore with diffusers to reduce velocity/scouring (installed via directional drill 2 years ago, mistaken for oil drilling). Additional: 78 curb inlets with socks for debris/nutrient reduction; 6,000 feet pipe (24-54 inches) for 25-year storm; BMPs per Water Management District. 3) Tourism benefits: Positive impact study (presented March to CAC/TDC/BCC); removes unsightly pipes (photo shown as deterrent with discoloration); flood protection (current 5-year vs. new 25-year/3-day); reduced flooding on Gulf Shore; increased foot traffic August 19, 2025 Page 5 (beaches/parks/roads/sidewalks); boosted economy. $86M total cost (contracted); June 2027 completion. 4) Questions: CAC approved last Thursday; 78 inlets typical open-throat (noticeable but standard, 3x more to keep water off streets). Discussion: Ideal tourism dollar use for long-term infrastructure/stormwater/water quality; shout-out to Bob Middleton (past retirement, dedicated); residents patient with Gulf Shore disruptions (torn up, needs 4-wheel drive). Motion by Clark Hill, seconded by Nancy Kerns. Motion carried (7-1, McComas dissenting, citing concern over scale of funding). B. Tourist Development Tax Ordinance – Sixth Cent Levy 1) Jay Tusa presented. Extended details: Recommendation to BCC for ordinance levying 6th percent TDT (from 5% to 6%), voter approval November 3, 2026. Applies to ≤6-month rentals. Collier qualifies as high- tourism-impact county (Florida Statute 125.0104; DOR confirmed >$600M taxable sales prior year). Intent: Dedicated funding for Paradise Coast Sports Complex completion (per Hunden Partners analysis: capital for high-profile events, off-peak visitation, sustaining businesses). 2) Funds without general fund impact. Effective January 1, 2027; ~$9.7M annually (FY24 basis). Allocates to promotion/infrastructure/other uses, significant for sports facilities. BCC approved advertising July 8, 2025; notice July 23, 2025. Ballot language due June 12, 2026. Discussed in past with Hunden reports. Questions: No sunset (confirmed); 60-40 split (60% infrastructure like Sports Complex/other; 40% promotion, loose term, could reserve). Discussion: Puts to voters; supports visitors contributing extra cents. Motion by Chairman Hall, seconded by Palumbo. Motion passed unanimously (8- 0). C. Sponsorship Agreement – 3 STEP SPORTS LLC Jay Tusa presented. Extended details: Recommendation to BCC for ordinance levying 6th percent TDT (from 5% to 6%), voter approval November 3, 2026. Applies to ≤6-month rentals. Collier qualifies as high-tourism-impact county (Florida Statute 125.0104; DOR confirmed >$600M taxable sales prior year). Intent: Dedicated funding for Paradise Coast Sports Complex completion (per Hunden Partners analysis: capital for high-profile events, off-peak visitation, sustaining businesses). Funds without general fund impact. Effective January 1, 2027; ~$9.7M annually (FY24 basis). Allocates to promotion/infrastructure/other uses, significant for sports facilities. BCC approved advertising July 8, 2025; notice July 23, 2025. Ballot language due June 12, 2026. Discussed in past with Hunden reports. Questions: No sunset (confirmed); 60-40 split (60% August 19, 2025 Page 6 infrastructure like Sports Complex/other; 40% promotion, loose term, could reserve). Discussion: Puts to voters; supports visitors contributing extra cents. Motion by Radler, seconded by Becker. Motion passed unanimously (8-0). D. FY 2025–26 Marketing & Museums Grants 1) Jay Tusa presented. Extended details: Approval of $758,000 TDT grants (Category B $84,000 marketing; C-2 $674,000 non-county museums), finding promotes tourism. Flow chart showed allocation (tourism budget to grants, B/C-2 bottom). Arts/culture impact: $147M economic (38% up from 2017), 20 organizations, 30% non-local audiences, 84.1% venue important pillar, 86.7% loss if unavailable. 2) Program evolution: a) Detail hotel/short-term room blocks, tax collections/organization, marketing measures, estimates vs. actual attendance, email graphics. 18 arts/culture applications (highest; $1.1M requested, $758K recommended). b) Fifth Avenue South BID (new, $20K); Florida Stone Crabbers Assoc/Everglades Seafood Festival ($20K); Gulf Coast Orchid Alliance (new, $2.5K); Gulf Shore Opera ($22.5K); Sepharic Fire ($5K); United Arts Council ($14K). c) Artist Naples ($75K); Golisano Children's Museum ($40K); Gulf Shore Playhouse ($75K); Marco Island Center for the Arts ($45K); Naples Art Institute ($70K); Naples Art District ($45K); Naples Botanical Garden ($75K); Naples Zoo ($60K); Opera Naples ($60K); Holocaust Museum/Education Center SW Florida ($9K); Naples Players ($75K); Theater Zone (new, $45K). d) Public comment: Hilah Crane (Marco Island Center for the Arts Executive Director) noted grants enabled marketing/programming growth, expanding beyond Collier (hyper-local past, enormous last 3 years); took over failed theaters 2022; hopes continued support for all. 3) Discussion: Wonderful grants, focus on Marco; Holocaust Museum worthy to keep history fresh for youth. Motion by Kerns, seconded by Hill. Motion passed unanimously (8-0). E. FY 2025–26 Destination Marketing Plan Kristen Murphy presented. Extended details on marketing explanation: Recommendation to approve plan, finding promotes tourism. Based on flat budget; Barbara to cover supplemental. FY24 1) Impact: $4B economic (10% up), $48M tax collections (11% up, ~$1,700/household savings). FY25 anticipates higher. FY25 $5M additional (disaster recovery Dec, marketing March): Learnings from expanded (net new/enriched markets), international PR, new digital, August 19, 2025 Page 7 enhanced sales. FY26 opportunity: Attract premium U.S. travelers; account new lodging (increase demand/offset supply); competition from coastal/upscale (monitor/position brand authentically/freshly). 2) Goals: Increase tax collections/economy; occupancy (shoulder/need, maintain peak Jan-Mar); tax revenue; first-party data; advance messaging; deepen partner alignment. Measurement: KPIs (tax/ADR/demand/RevPAR) + tactic metrics (e.g., impressions/reach upper funnel banners; engagement mid; conversions lower Expedia). 3) Analogy: Football team—not all score touchdowns (judge punter by blocks). Data-driven: 1,500+ sources (Downs/St. Germain, Adara campaign performance/observed revenue, AI Opti smart media/machine learning). 4) National trends: International leisure cycles domestic; quiet vacationing/anywhere work; immersive cultural (arts/culture); grandparent getaways; weddings; destination dupes (Paradise Coast vs. Maldives). 5) Local trends: Occupancy lower prior years (focus increase at current rates for return). Markets: Boston/Philly/D.C. highlighted (high spend/opportunity); April-July Florida strong, expanded (Boston top revenue/bookings; NY strong ADR; Cleveland highest/booking). ROAS: $19 expanded, $10 enhanced. FY26 6) Focus: Leisure (established/growth/emerging, Florida niche arts/culture/golf, international Canada/UK/Germany mid-lower); Sales (groups/meetings/trade/weddings/sports). 7) Strategies: Maximize need periods; research/data-driven; agility/adaptive; experience-driven (eco/luxury/wellness); omni-channel (owned/paid/earned/shared, partner collaboration); digital innovation/AI (right message/time/place). 8) Brand prism: Redone annually for resonance/authenticity. Campaigns: Sustaining (year-round mid-lower, OTAs/search); staggered fall/winter/spring/summer/international (upper/mid most, mid-lower international). Sales: Stronger trade shows, new content/collateral, enhanced partnerships, trade media, FAM amplification. 9) Discussion: $5M lessons (specific to extra? Applicable flat? Yes, examined same, included recommendations); KPIs vs. lagging (semantics—KPIs bottom like tax/occupancy/demand; metrics for tactics). Motion by Hall, seconded by Radler. Motion carried (7-1, Kramer dissenting). F. Supplemental Tourism Marketing Proposals Barbara Karasik presented. Extended details on marketing explanation: 1) Review proposals up to $5,000,000 for FY25-26 supplemental efforts, determine BCC recommendation, finding promotes tourism. Barbara noted title change to CMO. 2) Introduced new CEO Mark Geronski (ex-Georgia Tourism/Economic Development). 3 scenarios atop $6M. Issue: PO historically late (Oct 29 last, Nov 20 prior). August 19, 2025 Page 8 3) Marketing pauses early Sept for Oct invoicing, dark last 2.5 weeks Sept/most Oct/sometimes Black Friday. Follows county rules; rare elsewhere (POs first week, pause days). 4) Scenarios from 12-month learnings. Flat $6M: Best (stronger key sources, repeat/Florida loyalty, tax growth but not full, brand visibility); Worst (momentum halted, dark 6-8 weeks, oversupply pressures ADR/profitability, new inventory struggles, luxury marketing loss). S 5) Supplemental: Informed/data/trends-driven; higher conversion (not just lower); growth/occupancy/revenue. Options: $2.5M (stronger key sources, expand spring/summer Dallas-Fort Worth/D.C./Philly, digital enhancements, sales support); $4M ($2.5M + Boston/Minneapolis winter); $5M ($4M + luxury collaborations Afar/Condé Nast/Garden & Gun/TNL/Departures/Robb Report/Curator with media/marketing/booking digital, targeting luxury). 6) Holistically: Seasonality emphasis (off/shoulder occupancy, maintain winter); booking windows (e.g., Philly short, high spend/ADR). Digital: YouTube video destination (short/long, AI booking/itinerary integration). Sales: BookRite seamless groups (portal for attendees, direct bookings, first-party data). Success: After-click attribution, increased engagement/conversions; protects high/summer (no longer shoulder, strong). 7) Flat visitors + ADR $318-325 + occupancy 64.5-68% + rooms 7,600- 8,700 = $701M tax vs. $651M. $2.5M tempered; $4M moderate; $5M most. 8) Discussion: Strong U.S. presence amid international softening; Meg differs on summer (5th Ave boarding); dark period (some paid pauses mid-Sept for Oct invoicing, services continue; not hyperbole, no prorated refund as contract through 30th); $5M not hurricane recovery (portion was, approved due lowest statewide occupancy); lowest spending in comp set; restaurant closings (leading indicator, slowdown, war chest use now). 1) PO issue: Procurement policies delay; can explore but unrealistic expectation; invoices due early Oct, advertising pauses early Sept; other Florida/countries rare (POs week 1); summer holding but Meg notes 5th Ave slowdown. Motion by unidentified member to approve $5,000,000 supplemental, seconded by unidentified member. Motion passed unanimously (all "Aye," no opposed). 10. OLD BUSINESS A. None 11. TEN MINUTE BREAK – None August 19, 2025 Page 9 12. AGENCY PARTNER REPORTS 1) Monthly Metrics (June Focus): 1) Occupancy was up year-over-year, with increases primarily driven by leisure travel (aligning with earlier discussions by Kristen Murphy from Paradise Advertising). 2) There was a small increase in the number of visitors, but direct spending was down; Joseph emphasized this as part of a broader national trend post- COVID, where people are still taking trips but have less money to spend (not unique to Collier County, but seen across Florida and the U.S.). 3) The biggest dips in spending were in restaurants and shopping categories; this was more exacerbated in June, though early signs ("little inklings") appeared in April and May. Joseph tied this to on-street anecdotes about restaurant challenges discussed earlier in the meeting. 4) Market insights: Florida remained strong in late spring/early summer months, consistent with the spring-summer marketing plan. International visitation was down, but growth came from domestic regions like the Southeast, Northeast, and Midwest, attributed to increased domestic marketing investments. 2) Quarterly Data (April-June: Visitor Behavior and Markets): 1) Overall, fewer visitors and less spending compared to the prior year. 2) An increase in outdoor activities as the main reason for visiting (not just activities done, but the primary motivator); examples included golf, tennis, pickleball, sporting events (referencing the earlier FBU discussion), and fishing—described as "somewhat active" but not extreme (e.g., "not hiking the Oregon Trail"). 3) Shorter travel planning cycles observed: People are waiting longer to book until they find deals that fit their budgets; more use of platforms like Expedia (less pronounced in Collier but heard anecdotally elsewhere). Joseph noted this trend across Florida destinations. 4) More families traveling during this quarter. 5) Top states: Florida was #1 by a wide margin; other top states were mostly Midwest and Northeast, including Ohio, Illinois, Massachusetts, New York, Michigan, New Jersey, and Pennsylvania (all above 4% of visitors). 6) Top markets: Dominated by Florida cities (Miami, Orlando, Tampa, West Palm Beach, etc.), aligning with the spring-summer plan. Expanded markets included Boston, Minneapolis, Philadelphia, Detroit, Cleveland, Columbus, Milwaukee, and Indianapolis—names familiar from Paradise Advertising's report. 3) Fiscal Year-to-Date Overview: 1) Visitation and spending were about flat year-over-year; Joseph described this as a "win" given headwinds and macro events (e.g., economic pressures), crediting the extra marketing budget for helping maintain stability. August 19, 2025 Page 10 2) International trends: Down overall; Canada started strong but "dwindled significantly"; Europe was up slightly, with Germany notably up (visitors planned trips well in advance and followed through, unlike last year). 3) Domestic growth was driven by the Southeast, Northeast, and Midwest regions. 4) Joseph offered to answer questions about any data points, emphasizing the report's role in providing feedback for the team. 4) Questions and Minor Comments: 1) A council member (likely Nancy Kearns, based on context) commented on the interesting decline in European travel despite a favorable dollar-to- euro exchange rate; stressed the need to "stay visible in Europe" because markets cycle, and once lost, "it takes a ton to get it back." 2) Joseph agreed, noting historical cycles and the importance of not losing ground, as regaining markets is difficult (no immediate return expected, but a "long tail" effect from marketing). 3) No other questions; the presentation ended with thanks from Jay Tusa ("thank you as always") and Joseph appreciating the time after a long meeting. 13. TOURISM STAFF REPORTS A. Public Relations Update – Sandra Rios Ms. Rios reported that media coverage during July emphasized Collier County’s resilience post-storm season and its diverse cultural offerings. Highlights included a feature in USA Today on eco-tourism in Naples and coverage in Travel + Leisure regarding luxury accommodations. She also outlined fall press trips that will target Midwest and Northeastern outlets, with the aim of expanding shoulder- season visitation. B. Digital & Social Media Update – Buzzy Ford Mr. Ford presented data showing continued growth in social media reach. Engagement on Instagram rose 22% year-over-year, driven by new drone photography and short-form video reels. TikTok campaign trials generated more than 250,000 views with strong engagement from the 25–34 age demographic. Website traffic for Paradise Coast increased 18% compared to last year, with the majority of referrals coming from Google search and targeted ad placements. C. Coastal Zone Management Update – Andy Miller Mr. Miller provided an update on ongoing coastal projects funded in part by TDT revenues. The county has completed dune restoration at Vanderbilt Beach and Clam Pass, with measurable improvements in beach width and protection. He confirmed that design work is underway for upcoming renourishment projects in 2026. He also noted ongoing monitoring of erosion hot spots at Marco Island beaches. 1) Tourism Development Office – Jay Tusa Mr. Tusa thanked staff and agency partners for their coordinated efforts. He emphasized the importance of aligning TDC priorities with both marketing initiatives and long-term infrastructure investments. He August 19, 2025 Page 11 highlighted Collier’s competitive performance compared to other Florida destinations, despite international declines, and stressed the importance of sustaining momentum 14. COUNCIL MEMBER DISCUSSION A. Susan Becker stressed the importance of maintaining marketing in emerging feeder markets, noting Collier’s reliance on tourism dollars. B. Commissioner Hall suggested shifting TDC reporting to a quarterly model to streamline council time and focus on key decisions. C. Tourism Director Tusa indicated willingness to meet with each council member individually to refine reporting expectations. D. Bill Kramer expressed concern about supplemental marketing allocations and urged clarity on strategic priorities before committing additional funds. E. Nancy Kerns supported continued investment in sports tourism as a proven return on investment for the community. 15. NEXT MEETING A. The next meeting will be held on September 16, 2025 16. ADJOURNED There being no further business, the meeting was adjourned at 11:29 am COLLIER COUNTY TOURIST DEVELOPMENT COUNCIL ____________________________________ Chairman Chris Hall The Minutes were approved on ___________________________, as presented __________ (date of approval) or as amended ___________.