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TDC Minutes 05/01/2009 Subcommittee May 1,2009 MINUTES OF THE COLLIER COUNTY TOURIST DEVELOPMENT COUNCIL SUBCOMMITTEE MEETING Naples, Florida, May 1,2009 LET IT BE REMEMBERED, that the ColIier County Tourist Development Council Subcommittee, in and for the County of ColIier, having conducted business herein, met on this date at I :00 PM in a REGULAR SESSION in Building "F" of the Government Complex, Naples, Florida with the FolIowing members present: Chairman: Murray H. Hendel Susan Becker Clark HilI Robert MilIer (Excused) ALSO PRESENT: Jack Wert, Tourism Director ColIeen Greene, Assistant County Attorney KelIy Green, Tourist Development Tax Coordinator 1 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS TOURIST DEVELOPMENT COUNCIL SUBCOMMITTEE MEETING AGENDA MAY 1,2009 1 :00 PM - 4:00 PM I. CALL TO ORDER - CHAIRMAN HENDEL II. CHANGES/APPROV AL OF AGENDA III. APPROVAL OF SUBCOMMITTEE MEETING MINUTES 1. *Regular Meeting April 16, 2009 IV. NEW BUSINESS 1. Subcommittee Mission Statement: - A review of tourist development tax funding in Collier County 2. Time Limits - 3 minute limit per speaker followed by question and answer period 3. Topics for Public Input and Discussion a. The possible need for year-round tourism b. Suggested new sources of tourism promotion funding c. Suggested changes to the current allocation of the tourist development tax d. Improving collection of tourist development taxes from short-term rentals e. Maximizing tourist tax collections from on-line travel bookings f. Improving working relationships with area Chambers of Commerce g. Improving working relationships with regional tourism promotion organizations h. Consolidating area visitor information guides and directories V. SUBCOMMITTEE DISCUSSION VI. AUDIENCE INPUT VII. NEXT MEETING DATE/LOCATION 1:00 PM May 5, 2009 BCC Chambers VIII. ADJOURNMENT May I, 2009 I. CALL TO ORDER - CHAIRMAN HENDEL Chairman Hendel called the meeting to order I :00 p.m. A quorum was present. II. CHANGES/APPROV AL OF AGENDA Mr. Hill moved to approve the agenda. Second by Ms. Becker. Carried unanimously 3-0. III. APPROVAL OF SUBCOMMITTEE MINUTES 1. Regular Meeting April 16, 2009 Ms. Becker moved to approve the minutes of the April 16, 2009 meeting. Second by Mr. Hill. Carried unanimously 3-0. IV. NEW BUSINESS 1. Subcommittee Mission Statement: - A Review of tourist development tax funding in Collier County 2. Time Limits - 3-miuute limit per speaker followed by question and answer period 3. Topics for Public Input and Discussiou a. The possible need for year-round tourism Speakers Joyce McFarland, Marco Island Chamber of Commerce highlighted the following: · Year Round promotion of tourism in the area is necessary. · Competitors are aggressively promoting their destinations year round. . Collier County currently allocates 16% of Tourist Development Funds to Marketing and Promotion. · Other Counties in Florida utilize greater percentages (i.e. Lee County- 56%). · Money should be diverted from expenditures in Beach Management to Advertising and Promotions. Jack Wert noted approximately $6.5M - 7$M annually is dedicated to Beach Facilities and Maintenance. b. Suggested new sources of tourism promotion funding Discussed herein. c. Suggested changes to the current allocation of the tourist development tax. Speakers Patrick Neale, Marco Island Chamber of Commerce Government Affairs and Economic Development Committee highlighted the following: 2 May 1, 2009 · Supports the Subcommittees review of Tourist Development Council (TDC) funding activities. · The County should consider shifting the allocations of funds /Tom Beach Facilities and Maintenance to Advertising and Promotion. · The Government Affairs and Economic Development Committee have not evaluated a proposal to increase the Tourist Development Tax Rate from 4% to 5%. · The Marco Island beaches are in good condition overall. Rick Medwedeff, General Manager, Marco Island Marriott provided a handout, which outlined a comparison of Tourist Development expenditures of Collier County versus certain competitors (Ft. Lauderdale, Sarasota, Clearwater, etc.) within the State of Florida. The following was highlighted: · Marco Island Marriot contributes 20% of the total annual Tourist Tax Collected within the County. · The original purpose of the establishment of Tourist Taxes was for funding Advertising and Promotions. · Collier County is currently heavily out marketed by other destinations. · Collier County has the highest average daily rate of other competitive markets identified in the study. · Consumers already consider the Collier County destination as "pricy." · He is not in favor of raising the Tourist Tax Rate from 4% - 5%. · The County currently allocates approximately 16% of its Tourist Development budget to advertising and promotion, the lowest percentage of funds allocated to this activity of all the competitive markets identified (the percentages range from a high in the Florida Keys of 80% to the next lowest, Sarasota County - 33%). . Collier County expends the highest percentage in Beach Maintenance (50% of funds) of the competitors identified (33% higher than the average competitor). · Collier County is the only jurisdiction, which expends funds in the area of Museums. In conclusion he noted the following: · A 1 % increase in the Tourist Tax would lead to the area lodging industry decreasing rates to remain competitive, which may actually create a negative affect on Tourist Tax Collections. · Expenditures need to be re-allocated /Tom Beach Facilities and Maintenance to Promotion and Marketing. · A minimum of33% of total Tourist Development Funds should be expended in Marketing and Promotion. · Collection ofrevenues from sources that are not reporting taxes should be enhanced to increase revenue. 3 May 1, 2009 · Increasing funding in marketing would enable the County to market year round and to reach "Opportunity Markets" (markets that have been identified, but eannot currently be marketed due to funding constraints). Jack Wert noted "Opportunity Markets" are currently marketed via on-line promotions. Steve McIntire, Collier Couuty Hotel and Lodging Association and Manager of Bellas era highlighted the following: · The Association does not support a 1% inerease in the Tourist Tax Rate. · In tough economic times, funds are shifted from capital projects, etc., to promotion and marketing to ensure positions in the marketplace. . Supports year round promotion and advertising. · Supports the concept of re-allocating funds from Beach Faeilities and Maintenance to Advertising and Promotion. Gary McAlpin, Director, Coastal Zone Management highlighted the following: · Agreed the region needs to be competitive with other marketplaees. · Remaining competitive also includes the condition and types of amenities offered to visitors. · Beaches are one of the biggest assets/amenities associated with Collier County Tourism. · Of the 50% of Tourist Development Funds allocated to Coastal Zone Management, 33% is dedicated to Beach/Park Facilities, 67% is allocated to Beach and Inlet Managemcnt. · 10-year budgeting plans (2010-2020) for the Department expenditures will outweigh the revenue provided to the Department under the current standards. · The County has approximately 33 miles of Beach to maintain with a sand source located approximately 80 miles away, round trip cost of approximately $33 per cubic yard for sand. · Most other Counties identified in Mr. Medwedeffs study have sand source very close to their Beaches. · The Department combines projects when feasible and monitors consultant rates to improve economic efficiency. d. Improving collection of tourist development taxes from short-term rentals To be discussed next meeting. e. Maximizing tourist tax collections from on-line travel bookings None f. Improving working relationships with area Chambers of Commerce 4 May 1, 2009 Jack Wert noted the Convention & Visitor Bureau (CVB) is investigating ways to coordinate efforts such as marketing, operation of visitor centers, publications, distribution of publications, etc., with all the parties involved (CVB, Chamber of Commerce, independent publishers of guides, etc.). g. Improving working relationships with regional tourism promotion organizations - None h. Consolidating area visitor information guides Jack Wert noted: · The Convention and Visitor Bureau (CVB) publications funetion as resources to attract visitors to the region. · The Chamber of Commerce or related publications function as resources in providing services or information once the visitor has arrived in the regIOn. · The CVB is considering if an "Official Tourist Map" should be developed to create consistency for publications. V. SUBCOMMITTEE DISCUSSION Discussion occurred on reasons other competitors' Tourist Tax Expenditures in Beach Facilities and Maintenance are significantly lower than Collier County and if they are utilizing other sources for funding. It was noted Miami spends 0 Tourist Tax dollars on Beach maintenance and the Beaches are in good condition. Also the allocation of Tourist Development Funds in the area of County and Non- County Museums was discussed. It was noted the Non-County Museum funding is earmarked for marketing the Museums outside the Community. The County Museum funding is primarily for Operations. Gary McAlpin expressed concern that the primary focus and the discussion in the meeting was on expenditure allocations within the Program and reducing beach expenditures. He recommended the Committee consider how to improve efficiency in all areas of Tourist Tax Expenditures. Is the County most effectively marketing the area outside the County and what are the returns on this investment? He will research how Beach maintenance and Facilities are funded in other jurisdictions. VI. AUDIENCE INPUT Mac Chaudhry General Manager Hilton, Marco Island requested the Subcommittee review Beach Maintenanee and Facility Expenditures to determine why other jurisdictions are expending less funds in this area compared to Collier County. VII. NEXT MEETING DATE/LOCATION 1 :00 PM May 5, 2009 BCC Chambers 5 May I, 2009 There being no further business for the good of the County, the meeting was adjourned by order of the chair at 2:31 P.M. COLLIER COUNTY TOURIST DEVELOPMENT COUNCIL SUBCOMMITTEE Murray Hendel, Chairman These minutes approved by the Board/Committee on as presented or as amended 6