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TDC Minutes 05/05/2009 Subcommittee May 5,2009 MINUTES OF THE COLLIER COUNTY TOURIST DEVELOPMENT COUNCIL SUBCOMMITTEE MEETING Naples, Florida, May 5, 2009 LET IT BE REMEMBERED, that the Collier County Tourist Development Council Subcommittee, in and for the County of Collier, having conducted business herein, met on this date at 1 :00 PM in REGULAR SESSION in Building "F" of the Government Complex, Naples, Florida with the following members present: Chairman: Murray H. Hendel Susan Becker Clark Hill Robert Miller ALSO PRESENT: Jack Wert, Tourism Director Colleen Greene, Assistant County Attorney Kelly Green, Tourist Development Tax Coordinator 1 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS TOURIST DEVELOPMENT COUNCIL SUBCOMMITTEE MEETING AGENDA MAY 5, 2009 1 :00 PM - 4:00 PM I. CALL TO ORDER - CHAIRMAN HENDEL II. CHANGES/APPROVAL OF AGENDA III. 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 IV. SUBCOMMITTEE DISCUSSION V. AUDIENCE INPUT VI. NEXT MEETING DATE/LOCATION -To Be Discussed By Subcommittee VII. ADJOURNMENT May 5, 2009 I. CALL TO ORDER - CHAIRMAN HENDEL Chairman Hendel called the meeting to order 1 :00 p.m. A quorum was present. II. CHANGES/APPROVAL OF AGENDA There were no changes to the agenda. III. 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 Speakers Bud Nocera, CEO, Visit Florida -is a company that provides tourism marketing for the State of Florida and matches State funding for tourism marketing through cooperatives advertising programs (CVB's, etc.) He noted the competition in tourism has greatly increased the last 10-15 years, while funding has not. Every State is heavily marketing tourism, as well as international competitors and recommended the County expend funds in the research and development of new tourist markets. Many of the Counties within the State of Florida are currently at a rate of 5% for Tourist Development Tax and has been necessary, as the costs of advertising have risen dramatically in the past 5 years. In the areas of Beach Facilities and Maintenance, Florida County's utilize Tourist Tax Funds, user fees, parks and recreation budget funds, tax incremental financing, etc. He recommended the County have a 10-year Master Plan for Beach Facilities, Maintenance and Public Access. At the national level, the US is the only industrialized nation without a National Tourism Marketing Program. Lee County is aggressive in collecting Tourist Tax from the short-term rental of single-family homes and condominium rentals. John Sorey, City of Naples Resident - stated the Coastal Advisory is charged with specific objectives in Beach and Inlet Management and surveys have shown the major reason for visiting the area is the beaches. He cautioned everyone from reducing expenditures in the Beach Facilities and Maintenance areas. FEMA guidelines should be taken into account as not to lose their funding. If the County wishes to increase funding for marketing, they should raise the Tourist Tax Rate from 4% to 5%. The Coastal Zone Management's 1 O-year plan indicates without funding sources, such as State 2 May 5, 2009 and Federal Grants, etc., Tourist Tax Revenue will not provide the necessary funds to complete the objectives of the County. Michelle Klinowski, Executive Director, Greater Naples Chamber of Commerce - stated overall there have been a decrease in tourist traffic and an increase in European traffic. She also stated marketing is critical and recommends increasing the funding with year around marketing. She suggested monthly meetings for those involved in marketing and also favors reviewing publications to ensure there are no duplications. Bob Raymond, Visitor Center Volunteer - (represents himself and not the Chamber of Commerce) stated there has been an increase in European traffic and most visitors have heard about Naples through friends or Travel Agents and Travel Guides. The two visitor centers should be combined and re-Iocated to the downtown area. He also suggested an "Official Map" as most tourists initially request directions to the beaches. He is not in favor of reducing funding the Beach Facilities or Maintenance. He also stated the CVB should be more involved with the activities center. He also volunteered his time to serve on a committee, if appointed, to review brochures and maps. Ted Soliday, Executive Director, Naples Airport Authority - stated marketing is critical to the area and efforts should be coordinated to ensure non-duplication of programs. He supports the "Official Map." Rebecca Beck, Director of Education, Corkscrew - stated advertising and promotion should increase its' focus on the ecological value of the area and available eco-tourism activities. Brian Holley, Executive Director, Naples Botanical Garden - noted cultural tourism encourages longer-term visits to regions. He requested the TDC continue to support cultural arts and the non-county museums. It is estimated the Botanical Garden will provide $15M of indirect economic benefits to the region in the next fiscal year. The facilities provide an alternate experience to beaches on poor weather days. He recommended the Tourist Tax be increased to 5%, as most visitors do not consider this in choosing a destination. Joe Cox, Executive Director, Children's Museum of Naples - all funds provided to the Children's Museum are currently utilized for marketing outside Collier County. They also have a traveling Museum to promote next years opening of the permanent site in Collier County. Statistics indicate museum attendance is increasing during the poor economic conditions. He noted more individuals visit museums, etc. than all professional sports events combined and recommended funding for museums remain in place with strict 3 May 5, 2009 guidelines. He recommended increasing the Tourist Tax rate to 5%. Organizations are beginning to consider Carbon Offset as a source of revenue. Claude Haynes, Collier County Tourist Tax Collector - his department collects the Tourist Tax and coordinates with the CVB in collection of taxes. The County aggressively attempts to identify single-family homes and condominiums renting short-term by monitoring newspaper advertisements, on-line advertising, etc. and has a public awareness campaign for the requirement of Tourist Taxes aimed at new homebuyers, homeowner and condominium associations. He recommended a mechanism be established requiring condominium associations, homeowner association, property management groups, etc. be responsible to collect any required Tourist Tax. Individual homeowners (as opposed to professional rental agencies) are the hardest to ensure compliance with Tourist Tax requirements and consideration should be given to a mechanism for increasing collections in this area. Elaine Reid, Naples Historical Society - stated with the current economic conditions, funds for marketing should be increased. She supports collaborations with all parties involved in tourist marketing. TDC funding is important to organizations like the Historical Society as surveys indicate over 50 % of visitors are from outside Collier County. Tammy Nemecek, Economic Development Council of Collier County - supports increased coordination between the CVB and the Economic Development Council (EDC) as well as establishing partnerships in marketing, etc. She also supports increased business conferences (corporate meetings and annual meetings, etc.) within the region as it indirectly creates "tourists" for the area. The EDC has not formulated a position on any proposal to increase the Tourist Tax from 4% to 5%. Break - 2:27pm Re-convene - 3:35pm Ron Jamro, Director, Collier County Museums - the following statistics were gIven: · Collier County Museum visitation increased 24% in 2008. · School visitation has increased 64% in 2008. · 65% of visitors are non-county residents. · 75 % of visitors to the area participate in cultural activities. · Studies indicate many counties utilize TDC funds in County Museum funding. It was noted that under the current Ordinance governing the TDC, increases in funding to County Museums would require reductions in marketing or non- county museum funding. 4 May 5,2009 Hunter Hansen, Naples Grande Beach Resort - opposes an increase in the Tourist Tax Rate from 4% to 5% but supports increased funding of advertising and promotions. He opposes decreases in funding for Beach Facilities and Maintenance and supports funding alternatives for Beach Facilities/Maintenance and Promotions and Marketing. He questioned the fairness of TDC fund allocations to Zoos, Museums, etc. and not other businesses that are facing the same economic dilemmas. Daniel Myers, Cabana Dans - recommended additional funds be allocated for marketing "out of season" and supports the concept of an "Official Map". He also recommended the County increase promotions for families and a satellite visitor center be considered for the North Naples area. Douglas Richenbach, Naples Zoo - recommended increasing in-season advertising for tourism. The Zoo and other businesses rely on the efforts of the CVB to market for visitors outside of Collier County. Geva Selarano, Conservancy of Southwest Florida - supports funding for Non-County Museums. TDC funds should focus on capital projects and on- going maintenance. She supports coordinating collaborative efforts for marketing in-state visitation to Collier County. Michelle Klinowski, Downtown Naples Association - a division of the Greater Naples Chamber of Commerce with a separate Board of Directors. The organization is membership driven and the materials available at the downtown Visitors Center are a representation of the membership (not publications from outside the membership). Ed Staros, Vice President, Naples Ritz Carlton - opposes an increase of Tourist Tax from 4% to 5%. Statistics indicate average daily rates and occupancy within Collier County has decreased approximately 15 % over the last year and current projections indicate occupancy in 2009 could be 30% less than 2008. Projections indicate 2010 occupancy will be worse than 2009. He supports additional funding for year round advertising and opposes reducing funds in beach expenditures. Scott Hamilton, Laplaya Beach and Golf Resort - noted group sales have been heavily impacted by the downturn in the economy but leisure sales have increased for the resort. He supports increased marketing for the area and noted room rates in Collier County are already the most expensive from other similar competitors in Florida. Increasing the tourist tax 1 % would have a negative impact on visitation to the area. 5 May 5, 2009 He supports continuing funding of Beach Facilities and Maintenance and recommends alternate methods for funding be considered (beach parking fees, etc.) Rick Medwedeff, Marco Island Marriott Beach Resort Golf Club and Spa - stated beaches are the number one asset to Marco Island/Collier County and similar competitors in the State. Collier County has the highest percentage of Tourist Taxes allocated to beaches and the lowest allocation to marketing compared to similar competitors within the State. He noted alternate sources of museum funding should be investigated. He opposes an increase of 1 % in the Tourist Tax Rate. Group meeting planners consider Tourist Tax rates when booking events as it is factored into the overall cost of the event. Room rates and occupancy are currently, and may continue to decline and even with a 1 % increase in the Tourist Tax rates, tax revenues to the County may also continue to decline. The main issue is how the County should fund Beach Facilities and Maintenance without negatively impacting funds allocated to marketing and advertising? He recommended the County investigate how competitors fund Beach Facilities and Maintenance. He also recommended the County consider utilizing alternate types of funding in this area. b. Suggested new sources of tourism promotion funding Discussed herein. c. Suggested changes to the current allocation of the tourist development tax. Discussed herein d. Improving collection of tourist development taxes from short-term rentals Discussed herein e. Maximizing tourist tax collections from on-line travel bookings None f. Improving working relationships with area Chambers of Commerce Discussed herein g. Improving working relationships with regional tourism promotion organizations Discussed herein h. Consolidating area visitor information guides Discussed herein 6 May 5, 2009 IV. SUBCOMMITTEE DISCUSSION Chairman Hendel requested: · Staff provide information back to the Subcommittee on how other Counties fund Beach Facilities and Maintenance. · The information on beach expenditures should include a cost per mile for beach maintenance analysis for the Counties studied. · Staff investigate Carbon Offset and its possible relation to funding activities. Mr. Hill suggested Staff investigates the possibility of delaying Grant Applications for funding requests scheduled for the Regular May TDC Meeting, until the Subcommittee makes its recommendations to the TDC. V. AUDIENCE INPUT Above VII. NEXT MEETING DATE/LOCATION To be determined. There being no further business for the good of the County, the meeting was adjourned by order of the chair at 3:48 P.M. COLLIER COUNTY TOURIST DEVELOPMENT COUNCIL SUBCOMMITTEE Murray Hendel, Chairman These minutes approved by the Board/Committee on as presented or as amended 7 ,~ -'''''''_''''"..~,.~,.".,......""._,,,,,.,,;.,,.,,....,,,,,,,,,,",----.__..-.,..,.-.