Backup Documents 02/12/2013 Item #10J 1 0 J PI31
45.0%
40.0%
35.0%
30.0% ar/0111.1"■••••••111N
25.0%
20.0%
15.0%
10.0% ■••■■G roup Occ
5.0% —1111.■•Grp Mix
0.0% 1
CY' •SC AC' SC7 %
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6 .0 (i°
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70.0%
60.0%
50.0%
40.0% -4—Trans Occ
30.0% -f-Group Occ
—h--Total Occ
20.0%
10.0%
0.0%
2007 2008 2009 2010 2011 2012
$250.00 -
$200.00
$150.00 -
—♦Trans Rate
$100.00 —III—Group Rate
-4—Total Rate
$50.00
$0.00 I ,
2007 2008 2009 2010 2011 2012
$140.00
$120.00
$100.00
$80.00 - —4—Trans Revpar
$60.00 —E-Group Revpar
-Total Revpar
$40.00
$20.00 -
$0.00
2007 2008 2009 2010 2011 2012
1 O j 91,4i
July,2012
COLLIER COMMUNITY ALLIANCE
RECOMMENDATION ON THE TOURIST DEVELOPMENT TAX
Overview
The Collier Community Alliance("CCA")has studied the principal issues of(1)the percentage amount
of the Tourist Development Tax("TDT")and(2)the current allocation of expenditures from revenue
collected on transient lodging of 6 months or less duration.The process has involved discussions with
community leaders and County staff as well as the review of financial information and other documents,
including Tourist Development Council and Coastal Advisory Committee materials and reports.
Since inception of the TDT bed tax in 1995,the initial 2%levy has increased to the current 4%level and
funds 3 categories of tourist-related expenditures with a June re-forecasted FYE 2012 budget of
approximately$14,355,000:
1. 50.00%-Category A(and D): Beach Park Facilities and Beaches,Inlets and Passes,Inland
Lakes and Rivers with public access(D-Fishing Piers)-$7,177,000
2. 36.60% -Category B:Advertising,Promotions, Special Events that promote tourism-$5,254,000
3. 13.40% -Category C: County Owned and Not-For Profit Museums- $1,924,000
There is consensus that a synergy of Category A assets represent the core tourist attractions in Collier
County.These prime amenities are(a)accessible wide,clean beaches and(b)superior fishing/boating
opportunities on the limpid waters of the Gulf of Mexico.
However,there are other non-Category A amenities/ambiances that define, enhance and round out the
unique and"world class"combination of Naples—Marco—Everglades tourist experiences.This study
will not fully itemize those attributes,but the list does includes superlative hotels/resorts and golfing
within a green/non-urban environment,charming shops,enticing dining venues,outstanding performing
arts,eco-adventures and the Everglades eco-system as well as Category C museums,including art
festivals, gardens etc..
Accordingly,Category B's pivotal marketing initiatives require adequate funding and effective promotion
of both core and complementary amenities to sustain Collier County's recovery from the recent recession
in a highly contested state tourist environment.
Comparatively,competitive coastal counties far outspend our advertising initiatives,notwithstanding the
transfer of an additional$1 million to marketing in each of 2010 and 2011 from the beach renourishment/
emergency reserves and beach park facilities'capital fund.We note that a May 2010 survey by Research
Data Services computes a high average return on each promotional dollar expended in the NY/NJ,
Philadelphia and Chicago feeder markets.
While all our competitive coastal counties do benefit from a higher 5%TDT tax, a negative relative
imbalance in our marketing expenditures would exist even if the other counties did not benefit from the
higher 5%tax.The other counties spend significantly less on Category A beach funding and nothing on
Category C museums.
�• 3
10 ,J I fi
With the apparent pullback in Florida and FEMA support for beach renourishment due to budgetary
constraints,the availability of government financial support for our beach projects is not promising.
However,our lobbying for federal and state funding should have a goal to be as successful as competitive
destinations and thus enable a spillover of any surplus TDT collections from Category A to Category B.
Within this context of competing interests for TDT dollars and our inability to prudently assume that the
10%increase in projected collections in 2012 over 2011 represents a sustainable trend due to the fragile
global economic recovery,the CCA makes the following recommendation as to(1)the amount of the
TDT tax and(2)the allocation of expenditures among Categories A,B and C.
Recommendations
(1)At this time,we recommend the continuance of the 4%TDT and oppose a 25% increase to 5%
due to the projected detrimental impact on group/convention tourism and the adverse multiplier effect on
projected spending within our community.We also endorse measures that enable the Tax Collector to
enhance collections by bolstering the enforcement of TDT remittances from single family homes
and condominiums/home owner associations/campgrounds/mobile home parks etc.
The Collier Tax Collector has undertaken multiple initiatives over recent years to increase collections,
including the monitoring of internet rental advertisements,mandatory landlord registration/tracking,
newspaper/tax bill/association notices and repetitive coordination with real estate brokers. This program,
in concert with improved overall TDT revenue,has increased collections by an overall 12.79%YTD FYE
2012,including boosts in all major categories— 10.82%hotels/motels,21.77%realtors and 18.11%
individuals.
The Destination Marketing Funding proposal submitted by the Greater Naples Convention and Visitors
Bureau to the Coastal Advisory Commissions in June,2012 persuasively makes the case against raising
the 4%tourist tax.The proposal highlights that group/convention planners must adhere to a total budget
and do account for all costs,including the TDT.Within that context, our lower tourist tax partially offsets
the relatively higher cost of airfare and ground transportation to/from RSW as well as the lower number
and less availability of direct flights.
(2)We endorse the major tenets of the Coastal Advisory Commission's response in June,2012 to the
Destination Marketing Funding proposal for Categories A,B and C. Specifically we recommend
the following reallocations of TDT dollars among the Categories:
• Funding of our prime Category A tourist amenity(beaches and beach park facilities)on an
integrated or"holistic"basis with an annual allocation within Category A's 50% share of
the TDT based on annual and forecasted requirements as determined by the Board of
County Commissioners.In FYE 2013,reserves for beach renourishment and beach park
facilities are respectively forecasted at$14,000,000 and$8,300,000(with only$355,000 of
budgeted beach park facilities projects in FYE 2013).
10J 241, 3
Not only are overall Category A reserves plus future tourist taxes sufficient to fund the
customary 6 year beach renourishment cycle costing$20 million but conceivably adequate(with
efficiencies and short-term transfer from Category A's catastrophe reserves)to allow for a
longer cycle at a higher cost with the benefit of significantly more sand and coastal protection
with less frequent environmental and tourist disruption.We do not make a recommendation
regarding the possible extension of the renourishment cycle as the County is in the process of
obtaining more information required to assess financial and operational feasibility.
• Elimination of funding of county owned museums._Funding should be phased to either
private endowment and/or the County's general fund over a 5 year period with the 11% share of
TDT monies($1,600,000)reallocated.to Category A. The CAC did not address reallocation and
neither we nor the CAC have made a recommendation regarding private non-profit museums
(2.4%of TDT or$344,000)
• Utilization of over-budget receipts of TDT monies for destination marketing so long as
beach and beach facilities are re-forecasted to be fully funded.The CAC did not take a
position on this item.
Ian McKeag
Bob Murrray
Bob Naegele
Victor Rios
: .. . .> ..
(PLEASE PRINT CLEARLY) Agenda Item # 1
MEETING DATE t I i i F `� (Circle Meeting Typg)'R guthrc Special Workshop Budget
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AGENDA ITEM TITLE .:,�� 1 i ', t��� `` L .�
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NAME .-' )',\. V , — ! 1
Representing/Petitioner: rte', 1 i Other:
COLLIER COUNTY ORDINANCE NO.2003-53,AS AMENDED BY ORDINANCE 2004-05 AND 2007-24,REQUIRES THAT ALL LOBBYISTS
SHALL,BEFORE ENGAGING IN ANY LOBBYING ACTIVITIES(INCLUDING,BUT NOT LIMITED TO,ADDRESSING THE BOARD OF COUNTY
(PLEASE PRINT CLEARLY) Agenda Item # )o
MEETING DATE a/1 a/ 1 3 (Circle Meeting Type) Regular Special Workshop Budget
AGENDA ITEM TITLE 1%E 1-6>
NAME T c N) 11,PIVi ADDRESS 280(05. 5Tit(.-U et0 Pk.4J 3e/,Aft', 5 fE,)*�? C 11
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Representing/Petitioner: ther.
COLLIER COUNTY ORDINANCE NO.2003-53,AS AMENDED BY ORDINANCE 2004-05 AND 2007-24,REQUIRES THAT ALL LOBBYISTS
SHALL,BEFORE ENGAGING IN ANY LOBBYING ACTIVITIES(INCLUDING,BUT NOT LIMITED TO,ADDRESSING THE BOARD OF COUNTY
(PLEASE PRINT CLEARLY) Agenda Item # /0,I -
MEETING DATE 0-//?- (Circle Meeting Type) Regular Special Workshop Budget
AGENDA ITE a TITLE j `-11 !"1i / �^J j
NAME & L- /t•'si[ntej ADDRESS tJ �,C( A�, n. ik-1,31/,3 J Af let Fe-W/
Representing/Petitioner: .k l- Other:
COLLIER COUNTY ORDINANCE NO.2003-53,AS AMENDED BY ORDINANCE 2004-05 AND 2007-24,REQUIRES THAT ALL LOBBYISTS
SHALL,BEFORE ENGAGING IN ANY LOBBYING ACTIVITIES(INCLUDING,BUT NOT LIMITED TO,ADDRESSING THE BOARD OF COUNTY
COMMISSIONERS),REGIS I ER WITH THE CLERK TO THE BOARD AT TNF RnnDn Minn rrr,.... ------
(PLEASE PRINT CLEARLY) Agenda Item # �U _
MEETING DATE (Circle Meeting Type) Regular Special Workshop Budget
AGENDA ITEM TITLE
NAME=i 1 r�; ) ADDRESS !()`o._- A , ,. , > 'f
Representing/Petitioner: Other:
r•n■I TCn r-ni inrry nonTniANCF NO.2003-53,AS AMENDED BY ORDINANCE 2004-05 AND 2007-24,REQUIRES THAT ALL LOBBYISTS
(PLEASE PRINT CLEARLY) Agenda Item # \'
MEETING DATE I { ,//�� (Circ - Meeting Ty.: Regular •- ial Workshop Budget
AGENDA ITEM TITLE I� L♦ ,/.a -JA, . /,eta 4..a ta—.- -, - 11
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NAME_13,/Fj j, r ADDRESS • _. -. `
Representing/Petitioner: 4)P' Other:
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COLLIER COUNTY ORDINANCE NO.200f-53,AS AME b ED BY ORDINANCE 2004-05 AND 2007-24,REQUIRES Q THAT ALL LOBBYISTS
SHALL,BEFORE ENGAGING IN ANY LOBBYING ACTIVITIES(INCLUDING,BUT NOT LIMITED TO,ADDRESSING THE BOARD LSF COUNTY
(PLEASE PRINT CLEARLY)RLY) Agend
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MEETING DATE c/ c9e,/3 (Circle Meeting T ype) Regular Special Workshop hop Budget
AGENDA ITEM TITLE 7_'/t•j t jj,x
NAME (! A< /---I t
( ADDRESS 1))1 -1-,1,4„4-:-..,-: 'T+, t KCV (> ,.
Representing/petitioner: '.1
Other:
COLLIER COUNTY ORDINANCE NO.2003-53,AS AMENDED BY ORDINANCE 2004-05 AND 2007-24,REQUIRES THAT ALL LOBBYISTS
SHALL,BEFORE ENGAGING IN ANY LOBBYING ACTIVITIES(INCLUDING,BUT NOT LIMITED TO,ADDRESSING THE BOARD OF COUNTY
COMMISSIONERS),REGISTER WITH THE CLERK TO THE BOARD AT THE BOARD MINUTES AND RECORDS DEPARTMENT.
YOU ARE LIMITED TO THREE(31 MINIITFC FAO vnrn rnuuewrrc __...___ ..