TDC Subcommittee Backup 05/01/2009 R
Tourist Development
Council
Backup Documents
May 1, 2009
APPENDIX A
Should We Increase the Tourist Tax Rate?
Based on this chart it would suggest we have an opportunity to increase
Bradenton
Charlottee
Clrwater/SP
Ft. Laud
Ft. Myers
Miami
Palm B.
Collier
Fla Keys
Sarasota
Pan ana C.
Tax
Rate
5%
5%
5%
5%
5%
5%
5%
4%
4%
4%
3%
HOWEVER consider this:
$1,600.00
$1,400.00
$1,200.00
$1,000.00
$800.00
$600.00
$400.00
$200.00 .
$0.00 .
Total Occupancy Tax per Unit
. 0' /) """' 0<:- ,,'I> 4 ,Co 00 ~ '0' (y
CJ~ -:;>V *" 0~ ,'1>",0 "t- ~...0 ~&> ~'11' ,,~ >:-'1>
<("v <<,'I> '1>15 0'11' ~'11' /,"v ~'11' ~'11' >:-'11'
'0' d' (j ~'11'
Collier County Collects the highest tax per unit
11 % higher than its closest competitor
69% higher than the average
Collier County has a much higher avg. room rate and although not the highest tax rate it
collects the highest tax dollars
When our customers are evaluating options it is the dollars that make their decision not
tax rates.
We are already considered "pricy" - we cannot price ourselves out of the market.
The Answer is NO
APPENDIX B
Should we look at our current allocation?
The Chart below shows total Tourist Tax Collected
Collier County is budgeted to collect a little less than $15m (7th out of 11 counties)
This is obviously a function of tax rate and number of units collecting
I-------------oc~~-panc~ T:--------- - ~---
$45,000,000
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0
vO ~ <0' 4 0'"' 0A"' ",.,.0' (}'1> U' 0<:- 00 I
y'1f ~'1f ,,~ 0<$ ~~ ~ 0' "" '1> ~ &> .
<<."v q,'1f r:>~if x..... <<,'I> () 0~'b' q,'1><:-'1><:' <o,'1>o'l! u"<:-'1>~ J
--- - - Chart 1
I~",oo'oo - -.;;:.;;;:;;;;. ;p;;'m:~ons ~"~;et -
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
~ 0
;::,Cj '1>V
.0 v
!1;' <<.....
()-~
~ '0' ~ A"' u' &'1> 0' >:- 0
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q, <<..... <<''1> q,'1><:-'1f cjf ~'1f CJ"<:-'1f
$2.4million is spent on Advertising & Promotion
- Chart 2
Adv/Promo as a Percent of Total Funding
80%
70%
10%
60%
50%
40%
30%
20%
0%
.,", 0
+-0'" t,,0
<<.''1> ~'1>~a
o
U' 4 0{o
<:-'1> ,-0<$ ~~
!,:-'If .",'If /.,.
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.~' '1>v OJ ~0
~ v '1>""00
x..... ~
-_:_-~
Collier County has the distinction of having the lowest % allocated to Advertising &
Promotions - 16 pts lower than its closest competitor and 33 percentage points lower than
the average.
Mktg I Promo Budget Per Unit
$900.00
$800.00
$700.00
$600.00
$500.00
$400.00
$300.00
$200.00
$100.00
$0.00
"' 0 '<
*"~ -:;>v 0~Cj
/)..'1> <<.,. if'
" ~~
(j
00 ,Co 0<:"- '0'
~ 0 ~ '"
~O ~'" 00 it'
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~
,
~0
vO
----"
Collier County also has the distinction of the lowest Advertising & Promotion funding
per unit. - 68% lower than the average.
So where does most of the Tourist Tax Money Go?
l
Beach Project Budget
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
~l 1~'I>. "' ",q, CJ' '0' 0<:"- 0 !;' 0 ~
CJO '1>"5" _ .......ei- 0<$ >:-'1> "'~ 0~ -:;>V *" J>'?i _..../If
r_~ ~. if' ~'11' <'>v 15 /.,. ,,'I> !1;~ ~-
"J <<,. ~~ q,'8'- " '0,'11' " << CJ'<:'
(j
Collier has the highest dollars funding Beach Projects - 64% higher than its closest
competitor and 223% higher than the average.
Beach Projects Budget as a % of Total Tax
Collection
60%
50%
40%
30%
20%
10%
0%
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CJO '1>"5"
~
",
0<:"-
~
00
'0,'11'
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+-0~ -:;>V
<<,'I> x''
~
~'11'
I
I ____~ ____.__
Another way of looking at it - Collier County has the highest allocated percent of the
tourist tax funding Beach Projects - 33 percentage points higher than the average.
Museum Funding from Occupancy Tax
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
~0' ",0<:"- t,,00 4 ;)0 ,Co A"'
VO 00<i' ~o "t- .,y: ~...0 +-0
'0,'11' V,<:,'I> ~~'I> x" <<,. <<,'I>
(j
~ '0' V' ",'I>
_~'11' ~ 'I> q>
~. q} [/><:"- ,'I>
~ ~'I><i' ",'1>
Another distinction - Collier County is the only county funding Museums for the Tourist
Tax. By the way this is represents the same percent of total tax collected (16%) as the
amount funding advertising and promotions.