Agenda 07/22/2008 Item #10IAgenda Item No. 101
July 22, 2008
Page 1 of 15
EXECUTIVE SUMMARY
Request and recommend the BCC declare an Economic Emergency
Situation and approve expenditure of Tourist Development Tax
Emergency Advertising Funds for international and domestic market
promotion in FY 08 Totaling $ 476,300 and in FY 09 in the Amount of
$738,650
OBJECTIVE: Review and recommend approval of a Resolution declaring an
Economic Emergency and authorize expenditure of Tourist Development Tax
Emergency Advertising funds for a greatly expanded integrated marketing program to
increase International and domestic tourism in the balance of FY 08 and in FY 09.
CONSIDERATIONS: The economic situation in the U.S., the State of Florida and in
Collier County is very distressed. Our local real estate market is in decline, residential
construction has all but ceased and many Collier County residents are in danger of
losing their jobs and homes. The tourism industry has been the one bright spot in Collier
County, showing increases in visitors and expenditures for the first 5 months of 2008.
To date, our hotels, restaurants and retail have been able to keep the majority of their
employees, but a decline this summer and fall in visitors will cause mass layoffs.
Hoteliers indicate that they must see growth this summer or they will need to layoff staff.
Restaurateurs report slow sales to residents, so they are relying on visitors to justify
keeping staff. Retailers are reporting declining sales and need growth to keep staff.
International visitation to Collier County has been the leading growth indicator in the
tourism industry beginning the last quarter of 2007 and continuing through the first two
quarters of 2008. Our visitation from the UK, Germany and Canada has shown
significant growth during this period. The very favorable exchange rates of the Euro (1€
= $1.56); British Pound (1£ = $1.97 and Canadian Dollar = $.98) indicates that there has
never been a better time to attract more of these International visitors to Collier County.
Domestic visitation and expenditures is led by Florida residents, primarily from
Southeast Florida with 60% of our summer visitors originating from this area. With
gasoline over $4 per gallon, vacationers from areas within a two hour drive consider our
destination a "one tank vacation ". So attracting more in -state visitation from areas that
already have the propensity to come to Collier County should be another excellent
source of visitors to spend their vacation time and money here.
The Tourist Development Council (TDC) discussed at their June 23 meeting ways to
immediately take advantage of the very favorable International exchange rates and
Southeast Florida residents' desires for short drive getaway vacations. They
unanimously (8 -0) recommended that Emergency Advertising funds be used to expand
the marketing efforts in these areas.
Agenda Item No. 101
July 22, 2008
Page 2 of 15
Attached are the proposed expenditures from the Tourist Development Tax Emergency
Advertising Fund 196 for the balance of FY 08 and for FY 09 to take advantage of this
opportunity to keep our tourism industry employed and visitors coming to Collier County
now and in the future.
SUMMARY OF NEW PROMOTION ACTIVITIES (Details on attached spreadsheets):
Full -time International representation in UK and Europe
Development of new International websites
International research in UK and Germany
Advertising and promotion in UK and Germany
Advertising and promotion in Canada
International Public Relations Assistance
Part-time to full -time Public Relations Assistant
In -state Advertising and Promotion
ADVISORY COMMITTEE RECOMMENDATIONS: The TDC unanimously
recommended (8 -0) that staff develop a proposal using a zero based budgeting
approach to determine the proper expenditure level for additional International and
domestic advertising, promotion and support at their June 23, 2008 meeting.
COUNTY ATTORNEY FINDING: This item has been reviewed and approved by the
County Attorney's Office. It is legally sufficient for Board action. - CMG
FISCAL IMPACT: Sufficient funds are available in the TDC Emergency Advertising
Fund 196 to cover these expenditures.
GROWTH MANAGEMENT IMPACT: There is no impact to the Growth Management
Plan related to this action.
RECOMMENDATION: That the Board of County Commissioners declare an Economic
Emergency situation per County Resolution 2007 -278 and approve the expenditure of
Tourist Development Tax Emergency Advertising funds for International and domestic
promotion this summer (FY 08) up to $476,300 and up to $ 738,650 in FY 09, upgrade
one existing part-time Public Relations Assistant position to full -time and approve an
Emergency Declaration Resolution.
PREPARED BY: Jack Wert, Tourism Director
Page 1 of 1
Agenda Item No. 101
July 22, 2008
Page 3 of 15
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
101
Item Summary:
This item to be heard at 11:00 a.m.
Request and Recommend the BCC Declare an Economic
Emergency Situation and Approve Expenditure of Tourist Development Tax Emergency
Advertising Funds for International
and Domestic Market Promotion in FY 08 Totaling
$476,300 and in FY 09 in the amount
of $738.650. (Jack Wert, Tourism Director)
Meeting Date:
7/22/2008 9:00:00 AM
Prepared By
Jack Wert
Tourism Director
Date
County Manager's Office
Tourism
7/10/2008 3:24:06 PM
Approved By
Lyn Wood
Purchasing Agent
Date
Administrative Services
Purchasing
7/10/2008 4:08 PM
Approved By
Jack Wert
Tourism Director
Date
County Manager's Office
Tourism
7/11/2008 8:23 AM
Approved By
Kelsey Ward
Contract Administration Manager
Date
Administrative Services
Purchasing
7/11/2008 8:35 AM
Approved By
Colleen Greene
Assistant County Attorner
Date
County Attorney
County Attorney Office
711112008 8:56 AM
Approved By
OMB Coordinator
OMB Coordinator
Date
County Manager's Office
Office of Management & Budget
7/11/2008 1:10 PM
Approved By
Mark Isackson
Budget Analyst
Date
County Manager's Office
Office of Management & Budget
7/11/2008 1:57 PM
Approved By
James V. Mudd
County Manager
Date
Board of County
Commissioners
County Manager's Office
7/14/2008 12:55 PM
file: / /C:AAgendaTest \Export\] 1 l -July% 2022% 202008 \10. %2000LTNTY %20MANAGER %... 7/15/2008
Agenda Item No. 101
July 22, 2008
Page 4 of 15
RESOLUTION NO. 2008-
RESOLUTION OF THE COLLIER COUNTY BOARD OF COUNTY
COMMISSIONERS AUTHORIZING USE OF TOURIST
DEVELOPMENT FUNDS FOR EMERGENCY ADVERTISING DUE
TO THE DISTRESSED ECONOMIC SITUATION IN THE UNITED
STATES.
WHEREAS, the Board of County Commissioners of Collier County sets aside tourist
development tax funds for Emergency Advertising in Fund 196 in accordance with Ordinance
No. 92 -60, as amended; and
WHEREAS, the Board of County Commissioners finds that there is an Economic
Emergency due to the distressed economic situation in the United States and that use of
Emergency Advertising Funds for this purpose is appropriate; and
WHEREAS, the Board of County Commissioners desires to authorize staff to use up to
$700,000 annually from Fund 196 for Emergency Advertising on an as- needed basis for two
years (FY 08 and FY 09); and
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that: the Tourism Director is
authorized, after approval by the County Manager and the Chairman of the Tourist Development
Council, to use funds up to $500,000 in FY 08 and up to $800,000 in FY 09 for Emergency
Advertising in accordance with this Resolution; and
BE IT FURTHER RESOLVED, the Board of County Commissioners finds that
circumstances or events in or near Collier County which warrant the immediate use of
Emergency Advertising Funds includes a distressed economic condition as it exists today in the
United States; and
BE IT FURTHER RESOLVED, the Board of County Commissioners further finds that
there is state of emergency warranting the expenditure of Emergency Funds for advertising in
specifically identified markets; and
BE IT FURTHER RESOLVED, this authorization is for the duration of the County's
contract with Paradise Advertising and Marketing, which contract shall expire on September 30,
2008, unless renewed annually for up to a maximum of two (2) additional years.
This Resolution adopted this
vote favoring same.
ATTEST:
DWIGHT E. BROCK, Clerk
Deputy Clerk
Approved as to t'onn and
legal sufficiency:
Colleen M. Greene, Assistant County Anomey
CP,TDC2007ResoWmhoriveF.merge ,AdvertisingFw&
day of July, 2008 after motion, second and majority
BOARD OF COUNTY COMMISSIONERS
OF COLLIER COUNTY, FLORIDA
By:_
TOM HENNING, Chairman
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Paradise
Agenda Item No. 101
July 22, 2008
Page 6 of 15
Collier County
2008 -2009 International Marketing Campaign
Prepared by Paradise Marketing Inc.
July 2008
Paradise ti
r.
Goal
Agenda Item No, 101
To increase name and brand awareness driving inquiry, bookings and overall revenues for
Collier County.
Objectives:
• To increase overnight stays and county revenues by leveraging the prospective visitors:
- International Markets: Put emphasis on the UK, Germany and Canada markets.
- Domestic: Aggressively pursue late summer and fall visitation.
Situation Analysis
The following observations are based on third -party research garnered through VisitFlorida,
Orlando and other sources:
International Travel: The UK is the top producer for Florida and Orlando and in all likelihood for all
Florida destinations. The UK is followed by Canada, Germany and South American markets
including Brazil, Argentina and Venezuela. Latin America has long -term potential but Europe,
specifically the UK and Germany, has a history of visitation and the greatest potential for 2008/2009
visitations. Aside from the tradition of UK, Canadian and German visitation, the weak dollar makes
Florida an even more appealing destination.
Domestic Travel: The soft economy and high cost of gas is keeping vacation travelers closer to
home.
Strategies /Targets
UK /Germany:
• Geographic: London is by far the primary target in the UK. Major markets in Germany include
Munich, Berlin and Frankfurt.
Page 2 of 4
Paradise
Agenda Item No. 101
• Demographics: The U K and Germany are skewed toward the 35 -64 ages brackets, with household
incomes of $100,000 plus.
• Seasonality /Timing: Both the UK and German markets tend to visit primarily in the spring and
summer seasons. The time window for booking rooms is a much longer period than domestic time
windows. The UK is weighted toward 60 days plus with and emphasis on 120 days plus. Germany
is 60 days plus with emphasis on the 60 to 90 day. It should be noted that the lead -time is
referencing bookings versus collecting data for destinations which would have a substantially
longer time span. We also know that tour operators provide catalogs in the fourth quarter
designed to generate interest for a January or February decisions for spring /summer visitation.
• 80% use hotel and other accommodations. 20% stay with friends and family only.
Canada:
• Geographic: Primary emphasis for Canadian visitation would be aimed at Toronto, Ontario.
Historically, visitors from the Toronto market have traveled both by air and car to the West Coast
of Florida. Visitors from Quebec have typically gone to the Florida East Coast.
• Demographics: The Canadian demographics tend to skew 35 -64 like the overseas markets and
have a similar household income of $100,000 plus.
• Seasonality /Timing: Canadian markets differ from overseas markets in that they are not interested
in the summer visitation, but lean toward winter, fall and spring markets. Although the data is not
broken down by month, Paradise's experience with other Gulf Coast beach destinations would
reflect that Canadians prefer taking advantage of the substantial winter savings in January and
into mid - February.
Domestic Visitation:
• Geographic: Target the four -hour drive market.
• Demographics: This would be an extension of our on -going campaign reaching adults 35- 54, and
50 plus with a $100,000 plus household incomes.
• Seasonality /Timing: Additional funding would provide an opportunity to extend the marketing
into the late summer and fall marketing. Unlike the European and Canadian marketing, domestic
marketing especially the four -hour drive market can have a very spontaneous reaction to marketing
Page 3 of 4
* Paradise
resulting in immediate bookings.
International Strategies
Agenda Item No. 101
• Because of the long lead time for booking and especially gathering destination information, the
campaign in the UK and Germany should run in August, September, October and part of
November. The campaign would skip the Christmas holidays and come back with a "blitz" in
January.
• Prospects gather the information in the fall and typically make the decision in January and the first
part of February for spring /summer vacation.
• Canadian timing is similar to overseas marketing as it would run in late summer, fall, skip the
holidays and blitz in January. The distinction is that the Canadian visitors are more likely to have a
faster response thus generating immediate business for fall and January.
• Use an integrated campaign that will include online advertising, eblasts and a front - loaded
television campaign to enhance brand awareness. Inquiries would be driven to a distinct URL
address that would provide incentives, collect database, and provide booking opportunities.
• Develop co -op and partnership opportunities especially with tour operators and airlines.
Domestic Strategies:
• The campaign timing would begin in August and run into mid - October thus avoiding the clutter
and high cost of advertising right before the election and during the holidays.
• Use integrated media including online, eblast and budget permitting broadcast and transit
advertising. Drive all business to a distinct website offering special incentives.
• The campaign would focus on immediate booking in the summer and fall but would have a carry
over effect into the holidays and January. It also has the advantage of jump- starting the 2009
spring and summer visitation.
• Develop co -op partnerships to expand exposure.
Page 4 of 4
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Agenda Item No. 101
July 22, 2008
Page 15 of 15
Stuttgart Germany
Mr. Jack Wert
Naples, Marco Island Everglades
Convention & Visitors Bureau
Dear Jack;
Per your request, here is a draft of our full representation program.
Dedicated sales executive
Reactive press work (we will give you the cost of preparing a german press kit, as this is
of highest importance)
Sales & marketing representation in the leisure segment (TO and TA)
Covering Germany, Austria and Switzerland
€4000 per month
Travel expenses billed as a retainer monthly (includes TA and TO visits, daily postage,
sales calls, general travel in above mentioned regions excluding flights and fair
attendance, road shows and any events hosted /attended exclusively on behalf of Collier
county)
€350 per month
Natasa Manic, President