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Agenda 01/27/2026 Item #11A (Accept the Convention and Visitors Bureau (CVB) Governance Restructure Study Report)1/27/2026 Item # 11.A ID# 2025-5168 Executive Summary *** This Item to be heard at 10 AM. *** Recommendation to accept the Convention and Visitors Bureau (CVB) Governance Restructure Study Report; make a finding that the recommendations therein promote tourism; provide staff with direction as to next steps, which may include the drafting of any proposed tourism promotion agreement, private sector transitional plan, updates to the Collier County Code of Ordinances, and other necessary transitional documentation for review of the Tourist Development Council and Board of County Commissioners. OBJECTIVE: To accept the CVB Governance Restructure Study report and its recommendation to privatize the marketing, promotion, group sales, and event functions currently performed by the Tourism Division and to authorize any next steps. CONSIDERATIONS: The Tourism Division is a Destination Marketing Organization (DMO), which functions to enhance local businesses and the economy by marketing the destination to potential visitors via advertising and promotions. Conversely, a 501(c)(6) nonprofit is the most widely used structure for DMOs due to its flexibility, industry engagement model, and ability to raise supplemental private dollars. From the study report, nationwide, 84.3% of DMOs operate as nonprofits, and 15.7% operate as governmental units. In Florida, nearly half are nonprofits, with the creation and conversion trends favoring that governance model. Given an inferred competitive disadvantage, and in an effort to optimize Collier County’s effectiveness on a national and international scale, on February 27, 2025, the County Manager’s Office engaged Wert Marketing Group LLC to study alternative governance models for the County’s Tourism Division that may improve efficiency, flexibility, and enhance market responsiveness. The project included three main steps: research of various DMO models and DMOs that transitioned from a government to non-government status; outreach to local hospitality partners for input and feedback; and a review of the legal and operational framework for various models. The study concluded that moving the Tourism Division to a nonprofit model could offer several benefits: - Efficiency could be greatly improved by transferring marketing and promotional responsibilities to a specialized, industry-focused organization, reducing legal, financial, and County administrative staff time demands. - The County’s administrative burden may decrease as staffing, legal, accounting, human resources, information technology, and procurement costs and processes transfer to the new entity. - Continued transparency and accountability would be assured through clear public oversight of tourist development tax expenditures through current County reporting practices, marketing-related decision-making, and additional nonprofit public financial reporting. - Industry engagement may improve with direct representation from hospitality partners through membership and other partnership models, allowing the organization to address industry needs quickly as priorities arise or change. - Additional funding streams could be developed through supplemental funding mechanisms and programs to enhance resources. - A new governance model may better address human resource issues that have an impact on competitiveness, such as compensation comparable to private sector competitors, better recruitment via job descriptions that aren’t under the County’s Evergreen template, and additional staff to match the productivity of neighboring DMOs. For these and other reasons outlined in the study, it is recommended that the Tourism Division transition to a 501(c)(6) nonprofit entity. This will improve agility, flexibility, stakeholder engagement, and visitor spending optimization. Page 641 of 5261 1/27/2026 Item # 11.A ID# 2025-5168 This new entity would serve as the County’s official tourism promotion organization, governed by its own board of directors. It would receive Tourist Development Tax (TDT) funding remitted from the County to support tourism marketing, sales, and promotion of the destination. This includes administering funding assistance programs for group meetings, sports events, and arts and cultural activities, including non-County museum grants. The Tourist Development Council (TDC) would continue in its advisory role, providing recommendations to the Board of County Commissioners (BCC) on all TDT expenditures. The County would continue to manage and administer the TDT funds for tourism-related activities such as beach renourishment and maintenance, beach park facilities, the Paradise Coast Sports Complex, and County museums. The new Tourism entity would provide regular updates to the TDC and BCC, including a detailed marketing plan and budget before the beginning of the fiscal year of the new Tourism entity, and an annual report that includes an audited financial statement. Several entities have reviewed the study’s findings. On September 18, 2025, the Productivity Committee reviewed the study results, provided recommendations for data collection, and supported the recommendation to move the Tourism Division to a nonprofit model. On October 16, 2025, the Priority Based Budgeting consultant contracted by the Board of County Commissioners, Resource X, met with County staff and Mr. Wert to review the study recommendations. A subsequent memorandum received from Mr. Chris Fabian of Resource X contained the following summary: After reviewing the Collier County CVB Governance Restructure Study and its recommendation to transition the Tourism Division into a nonprofit 501(c)(6) Destination Marketing Organization (DMO), I find the proposal to be fully aligned with the principles, intent, and best practices of Priority Based Budgeting (PBB). From a “textbook PBB perspective,” this is precisely the type of structural reform PBB calls on governments to consider: placing services in the governance model where they can be delivered most effectively, efficiently, responsively, and sustainably, while maintaining the appropriate level of public oversight. The recommended transition advances the County’s goals around performance, resource optimization, transparency, and long-term fiscal stewardship. Based on this analysis, the principles of PBB would strongly support the recommendation. Completing the study is the first step in moving toward a nonprofit governance model. Acceptance of the study’s recommendations and insights gained from the presentation of the study to the Tourism Development Council and the Board of County Commissioners would then lead to subsequent steps that include review for compliance with the Procurement Ordinance and Florida Statutes, drafting of a proposed service agreement between the new DMO and the County, updating of applicable ordinances relating to tourism, transitional funding and staffing, logistical and equipment considerations, and contracted services transfer. The Board of County Commissioners will determine the timeline for implementation, contingent on their acceptance of the Governance Restructure Study Report, its recommendation for privatization of tourism marketing and promotion services, and any additional directives given. ADVISORY COMMITTEE: The Tourist Development Council accepted the CVB Governance Study report (Item 9.A) unanimously (7-0) at the December 12, 2025, meeting. This initiative aligns with the 2025 Collier County Strategic Plan in the Quality of Place and Responsible Governance Strategic Focus Areas. FISCAL IMPACT: There is no direct fiscal impact associated with accepting the Governance Restructure Study. A proposed plan of finance may be developed based on Board direction on the next steps. GROWTH MANAGEMENT IMPACT: LEGAL CONSIDERATIONS: The review of the Study is approved as to form and legality. Section 125.0104, Fla. Page 642 of 5261 1/27/2026 Item # 11.A ID# 2025-5168 Stat., provides the opportunity for a County to consider a different governance structure. The proposed governance structure will require additional County Attorney review at each step of the process including review for compliance with the County Procurement Ordinance and Florida Statutes. – CMG RECOMMENDATION(S): Recommendation to accept the Convention and Visitors Bureau (CVB) Governance Restructure Study Report; make a finding that the recommendations therein promote tourism; provide staff with direction as to next steps, which may include the drafting of any proposed tourism promotion agreement, private sector transitional plan, updates to the Collier County Code of Ordinances, and other necessary transitional documentation for review of the Tourist Development Council and Board of County Commissioners. PREPARED BY: Jay Tusa, Director, and John Melleky, Arts and Culture Manager, Tourism Division ATTACHMENTS: 1. Collier CVB Governance Restructure Study Presentation Final -TDC 12-12-25 2. CVB Governance Study Results Abbreviated Version - TDC 12-12-2025 3. ResourceX MEMORANDUM CVB Page 643 of 5261 Collier County Tourism dba Naples, Marco Island, and Everglades Convention & Visitors Bureau (CVB) Governance Restructure Study Results Collier County TDC December 12, 2025 Jack Wert, Wert Marketing Group John Lambeth, Civitas Page 644 of 5261 2 Governance Study Request As part of ongoing efforts to identify cost-saving strategies, improve operational efficiency, and evaluate potential public-private partnerships, the County Manager initiated a research study in March 2025. The study was tasked with: •Exploring alternative governance structures for the Tourism Division (CVB) such as hybrid and nonprofit models to administer tourism marketing and promotion •Evaluating the benefits and challenges of transitioning from a government -based Tourism Division to a hybrid model or private -sector Destination Marketing Organization (DMO) •Assessing how a transition could improve efficiency, flexibility, and market responsiveness and optimize the economic impact of tourism by attracting more visitor spending to our area businesses •Providing guidance on forming an alternative governance structure, including staffing, outsourcing, and funding considerations Page 645 of 5261 Benefits of a Restructured DMO Overall Goals •Improves efficiency, reduces administrative burden, maintains current transparency, and enhances tourism industry engagement Greater Efficiency •Optimizes visitor spending, streamlines and improves operations •Transfers marketing and promotional responsibilities to a specialized, industry-focused organization, reducing legal, financial, and County administrative staff time demands •Provides greater flexibility in contract and program execution, allowing a more expeditious response to tourism market changes and post-crisis marketing needs •Enhances agility and market responsiveness by improving flexibility in marketing and promotion execution and enabling quicker responses to marketplace changes •Expands future funding options 3 Page 646 of 5261 Benefits of a Restructured DMO Cont. Reduces County’s Administrative Burden •Transfers County staff time and cost for supporting legal, accounting, HR, and procurement costs of the current Tourism Division from County Government to the new tourism entity Assures Transparency & Accountability •Maintains clear public oversight of tourist development tax expenditures through existing County reporting practices related to marketing expenditures Improves Industry Engagement •Facilitates direct representation from hotels, attractions, restaurants, and tourism partners through membership and partnership models, ensuring industry and tourism marketplace needs are addressed Access to Potential Funding Streams •Establishes public-private partnerships and creates supplemental funding mechanisms and services to enhance financial resources 4 Page 647 of 5261 Current Challenges Staffing •Tourism Division staffing reduced from 13 to 9 FTEs, despite the challenge of serving more than two million leisure and conference attendees annually •Recruiting new talent is difficult due to a non-competitive wage scale •Current County Job Descriptions do not align with private sector professional sales and marketing positions •National, state, and local trends focused on reducing the size of government Crisis Management •Slow response in mitigating misinformation during and after hurricanes, wildfires, oil spills, economic recessions, pandemics, and other crises requiring immediate marketing strategy changes Rapid Growth Requiring Additional Sales Efforts •Marketplace competitiveness is threatened by reduced staffing levels •International visitor market share has increased over the past 10 years from 10% to 20% •Group meeting market share increased from 10% to 30% during that same 10-year period 5 Page 648 of 5261 Possible Solutions 6 •Obtain approval for additional professional Tourism Division staff positions to manage the increased workload •Contract with outside suppliers to replace services lost from vacated staff positions and support the growing visitor base •Study alternative governance structures to address challenges under the current governance model Page 649 of 5261 Determining the Best Alternative •The potential of obtaining County approval for hiring additional staff is low in the current atmosphere of determining ways to reduce staff in government agencies •Contracting professional expertise to better service our ever -growing visitor base is often not cost effective and does not provide the total full-time commitment provided by a dedicated staff person in a marketing or sales position •The results of this research project suggests the best alternative that will show the best Return on Investment (ROI) is a study to identify a different governance model to overcome the challenges faced by the current government -based Tourism Division 7 Page 650 of 5261 Early Study Recommendation Based on our early research findings, we identified the logical alternative to overcome the current challenges facing the Tourism Division was a restructured governance model for the Tourism Division operating as a Destination Marketing Organization (DMO). Our early recommendation was: •That Collier County Government initiate the formation of and transition to a non - government organization to serve as the contracted entity responsible for promoting tourism in the Naples, Marco Island, and Everglades area •The transition goal would be to optimize marketing agility, operational flexibility, and stakeholder engagement, while maintaining transparency and accountability through a formal contract with the County 8 Page 651 of 5261 9 The Project Scope Based on the early research findings, our study focused on three core areas: Research •Assessed government-run, nonprofit, quasi-government, and hybrid DMO governance models and evaluated case studies of DMOs that successfully transitioned to non -government status Community Engagement •Conducted stakeholder outreach with hotels and resorts, attractions, restaurants, sports and arts and cultural organizations •Formed a Steering Committee of tourism industry leaders to provide guidance and foster industry and community support through focused input meetings Legal & Operational Framework •Collected and reviewed IRS requirements, nonprofit bylaws, Articles of Incorporation, County/DMO contracts, operational policies, and funding levels to support a potential transition Page 652 of 5261 10 Research Results & Analysis Governance Model Comparisons The study compared several DMOs in Florida and across the U.S. Competitive Set of Destinations •Compared DMOs with similar budgets and their organizational structures (i.e. government, nonprofit, hybrid, etc.), funding and staffing levels Quasi-Governmental •This model combines public purpose with private entity traits but can be slow -moving Hybrid •Shares governance between public and private sectors; efficient but complex Nonprofit •Reviewed 501(c)(3), 501(c)(4), and 501(c)(6) structures •Noted that 501(c)(6) is the most used nonprofit model by DMOs, offering the greatest flexibility, funding options, and responsiveness Page 653 of 5261 11 Research Results & Analysis Competitive U.S. DMOs – $11M-$15M & Structure Government DMOs report revenue based on their marketing budgets, while nonprofit DMOs typically report total revenue Source: Civitas PRO Organization Name State Revenue*Type of Organization Visit Carlsbad CA $14,887,000 501(c)(6) Visit Austin TX $14,816,000 501(c)(6) Visit Pittsburgh PA $14,230,000 501(c)(6) Visit Park City UT $14,133,000 501(c)(6) Visit Bradenton FL $14,107,000 Government Meet Minneapolis MN $13,674,000 501(c)(6) Naples, Marco Island, Everglades Convention & Visitors Bureau FL $13,644,000 Government Visit Tucson AZ $13,573,000 501(c)(6) Desoto County Convention and Visitors Bureau MS $13,439,000 Government Visit Pensacola FL $13,319,000 501(c)(6) Experience Grand Rapids MI $13,241,000 501(c)(6) Hilton Head Island Bluffton Chamber of Commerce SC $12,930,000 501(c)(6) Visit Chattanooga TN $12,383,000 501(c)(4) See Monterey CA $12,151,000 501(c)(6) Discover Flagstaff AZ $12,100,000 Government Visit Greenville SC $12,056,000 501(c)(6) Experience Rochester MN $11,903,000 501(c)(6) Cincinnati USA CVB OH $11,644,000 501(c)(6) Explore Branson MO $11,626,000 501(c)(6) Visit Long Beach CA $11,531,000 501(c)(6) Tourism Santa Fe NM $11,480,000 Government Visit Knoxville TN $11,092,000 501(c)(3) Visit Milwaukee WI $11,056,000 501(c)(6) Page 654 of 5261 Florida DMO Governance Comparisons 12 DMO Name (Visitor Tax %)County Total TDT Collected FY 2024 "Advertising and Promotion" FY 24-25 Base for FY 2026 Percent TDT Spent on Advertising Staff Counts Website 2025 Governance Model Bradenton Area CVB (6% as of 8/1/24)Manatee $21,880,570 $16,467,791 75.3%13 Government Brevard County/Space Coast (5%)Brevard $25,260,000 $13,400,000 53.0%14 Government Florida Keys TDC (5%)Monroe $61,000,000 $30,000,000 49.2%5 * Government Amelia Island CVB (5%)Nassau $11,531,453 $4,624,180 40.1%11 501c6 Fort Myers/Sanibel (5%)Lee $44,262,302 $12,500,000 28.2%31 Government Discover The Palm Beaches (6%)Palm Beach $86,700,000 $19,799,608 22.8%52 501c6 Naples, Marco Is., Everglades CVB (5%)Collier $48,600,000 $11,000,000 22.6%9 Government Visit Tampa Bay (6%) + TID for Convention Center Hillsborough $65,035,754 $11,300,000 17.4%43 501c6 Visit Sarasota (6%)Sarasota $48,381,296 $7,900,671 16.3%15 501c6 Visit Jacksonville (6%) (city only)Duval $10,534,102 5,277,956 50.1%22 501c6 ** Visit Daytona Beach (6%) Halifax area only)Volusia $12,196,425 $12,154,750 99.7%17 Quasi-Government Visit Pensacola Escambia $22,023,172 $13,319,000 60.5%22 501c6 Visit Panama City Beach Bay $37,620,422 $9,111,112 24.2%24 501c6 * Organization is restructuring - had high of 11 staff in in 2024 ** City contract. FY starts May 1. Data is ahead of other DMOs Collier Notes: Will have added approximately 1,600 new hotel rooms to its inventory 2024-26 Collier County Tourism's marketing budget reached $6M in FY 19 and has consistently remained in the $5.5M - $6M range since then. Temporary restrictions occurred in FY20 through FY 22 due to COVID-19, with the budget returning to $6M in FY 23 and continuing at that base level. FY 25 saw an increase to the marketing budget to a total of $11M due to a supplemental investment of $5M. In Sept. 2025, a supplemental investment of $5M was approved again to retain the marketing budget at $11M.Page 655 of 5261 13 Research Results & Analysis Government vs. 501(c) DMO Structures in the U.S. Source: Civitas PRO 84% of US DMOs operate under a nonprofit structure 15.7% 84.3% Page 656 of 5261 14 Research Results & Analysis Government vs. 501(c) DMO Structures in Florida Source: Civitas PRO 84% of US DMOs operate under a nonprofit structure41% of Florida DMOs operate under a nonprofit structure Florida DMO Breakdown 41.2% 58.8% Page 657 of 5261 Case Studies Visit San Antonio San Antonio (TX) •Transitioned from a city department to a 501(c)(6) nine years ago, citing speed to market, better talent management and stakeholder leadership as key benefits achieved •“The conversion has been highly successful for the City, the CVB and for the community. The key was building consensus with City leaders and hospitality leaders.” Casandra Matej Past President/CEO15 Page 658 of 5261 Case Studies Experience Kissimmee Kissimmee (FL) •Successfully transitioned to a nonprofit 10 years ago with a 10-year agreement with Osceola County •“We utilized a transition team to help in planning and implementation of the new entity that resulted in improved staff acquisition, outside contracting, and the ability to raise private funds from marketing and trade show co-ops.” D.T. Minich President/CEO 16 Page 659 of 5261 Benefits Cited by DMOs Transitioning to Private Sector •The overall Purpose was to optimize tourism for their communities •Improved responsiveness to tourism market changes and trends •More timely and successful hiring practices •Improved engagement with their tourism industry stakeholders, elected officials and residents 17 Page 660 of 5261 Stakeholder Hybrid Sessions •Held six hybrid stakeholder sessions with participants from hotels, resorts, attractions, restaurants, sports, arts and culture, and merchant groups •Held 12 project Steering Committee meetings •Conducted one-on-one meetings with Collier TDC members •Provided monthly updates to the County Manager and Finance 18 Page 661 of 5261 19 Stakeholder Hybrid Sessions Verbatim Comments •“We are solidly behind this process and will support it” •“We see a real benefit in transitioning to a private sector CVB” •“Our organization will support this idea however we can” •“We will educate our Association members on the important of supporting this plan” •“Structure the County contract to maintain current transparency and accountability” •“How will the start-up costs be funded?” Page 662 of 5261 Organizational Responsibilities, Funding and Staffing •The County would retain TDT funding, staff and management for tourism-related responsibilities such as beach renourishment and maintenance, beach park facilities, the Paradise Coast Sports Complex, County museums, TDC administration, and advocacy issues supported by the BCC •The Tourist Development Council (TDC) would continue its advisory role on all TDT expenditures, providing recommendations to the BCC •The new DMO would continue to serve as the County’s official tourism promotion organization, governed by a separate board. The new DMO would manage tourism marketing, sales and promotion of the destination, administer funding assistance for group meetings, sports events, arts and culture events, non -County museum events and regularly report results under a contract between the County and the new entity 20 Page 663 of 5261 DMO Governance Framework The new entity would require the following to ensure compliance and transparency: •Bylaws and Articles of Incorporation •Key Policies: Conflict of Interest, Whistleblower and Records Retention •IRS Form 990 report filings and audits •Contracts with County and outside suppliers of marketing and operational services 21 Page 664 of 5261 Funding Sources Current Funding Source •TDT allocations Supplemental Funding Options Available for a Non -government Tourism Entity •Co-op marketing and partner trade show participation fees •Regional promotional opportunities with tourism industry partners •Membership/partnership contributions •Grants and special events revenue •Tourism Improvement District (TID), which allows lodging businesses to collectively approve a dedicated assessment that, once established, is mandatory and used to fund DMO marketing initiatives •Destination marketing fee collected by the accommodation and paid voluntarily by guests and used to support DMO-sponsored promotional initiatives •Potential TDT increase to 6% 22 Page 665 of 5261 Organizational Framework for Tourism Promotion •To support the expanded scope and responsibilities of a restructured tourism promotion organization, additional staff may be required in marketing, sales, stakeholder engagement, and operations •Specialized marketing and sales support roles could enhance organizational capacity, while core administrative and leadership functions such as finance, operations, and executive oversight may also be expanded to ensure effective management •Certain services such as human resources, legal, auditing, and IT could be contracted out to improve efficiency and control costs 23 Page 666 of 5261 Transparency, Accountability & Oversight •County oversight would continue for all tourism financial transactions •Contract with the County would include indemnification and required insurance coverage •Regular reporting to the TDC and BCC •Regular reporting to tourism industry stakeholders •Adoption by the restructured DMO of the recently approved CVB Strategic Marketing Plan and current Performance Metrics 24 Page 667 of 5261 Performance Metrics & ROI Performance Indicators/Metrics •Tourist Tax Collections •Visitor Spending •Visitation •Website Traffic •Social Media Engagement •Earned Media Value •Qualified Group Meeting Leads 25 ROI (Year-over-Year) •Direct Visitor Spending •Economic Impact •Average Length of Stay •Marketing Spend vs. Visitor Spending Page 668 of 5261 Recommendation Based on the completed research study findings, the following is recommended that: •Collier County Government initiate the formation of a nonprofit 501(c)(6) organization to serve as the contracted entity responsible for promoting tourism in the Naples, Marco Island, and Everglades area, transitioning from the current County Government structure •The transition is intended to optimize tourism, improve marketing agility, operational flexibility, and stakeholder engagement, while maintaining current transparency and accountability through a formal contract with the County 26 Page 669 of 5261 Approval Process •Collier County Administration - Approved •Productivity Committee - Recommended •ResourceX - Endorsed •TDC Recommendation - December 12, 2026 •Board of County Commissioners Consideration - 1st Quarter 2026 27 Page 670 of 5261 Collier County Tourism Division dba Naples, Marco Island, and Everglades Convention & Visitors Bureau (CVB) Governance Restructure Study Results Prepared by Jack Wert, Chief Marketing Strategist Wert Marketing Group LLC jwwert1@gmail.com 239-778-6629 John Lambeth, Founder & CEO CIVITAS jlambeth@civitasadvisors.com 916-505-1940 Page 671 of 5261 Collier County CVB Governance Research Study Results Prepared by Jack Wert, CEO, Wert Marketing Group LLC John Lambeth, CEO,Civitas December 2025 Page 672 of 5261 2 Governance Study Request •As part of ongoing efforts to optimize visitor spending, identify cost- saving strategies, improve operational efficiency and evaluate potential public-private partnerships, the County Manager initiated a research study in March 2025 •The study scope included exploring alternative governance models for the Tourism Division operating as a Convention & Visitors Bureau (CVB), including hybrid and nonprofit structures Page 673 of 5261 Purpose of the Study •Explore alternative governance structures for the CVB •Assess benefits of transitioning to a non-government Destination Marketing Organization (DMO) •Provide recommendations to improve efficiency, flexibility, responsiveness and engagement 3 Benefits of Restructuring Tourism Division •Optimizes visitor spending, streamlines and improves operations •Transfers government funding support for County staff time for legal, accounting, HR and Procurement to the new tourism entity •Continues current Transparency & accountability for oversight of TDT expenditures •Enhances tourism industry engagement •Greater flexibility and response time to a crisis and tourism market changes •Diversifies future funding options Page 674 of 5261 Current Challenges •Staffing reduced from 13 to 9 FTEs despite rising leisure and meetings demand •Recruiting difficult due to non-competitive wage scale & job titles not aligned with similar positions in private sector •Trends to reduce the size of government •Slow crisis response (hurricanes, wildfires, pandemics) •Growth pressures in the past 10 years o International Visitors (10%→20%), Meetings Market (10%→30%) Possible Solutions •Request County approval for additional staff positions •Contract with outside suppliers for needed services •Study alternative governance structures to address challenges under current government model 4 Page 675 of 5261 Determining the Best Alternative •Low likelihood of County approval for new staff •Contracting is costly, less effective and less commitment to responsibilities •Best ROI: Explore new governance model Early Study Recommendation •Transition to a non-government structured DMO organization •Benefits: optimized visitor spending, improved agility, flexibility, stakeholder engagement •Maintains accountability and transparency utilizing a County contract 5 Page 676 of 5261 Research Findings 6 Page 677 of 5261 Governance Findings •Compared DMOs with similar budgets on their structure, funding and staff •Governance models reviewed: o Government-run, quasi-government, hybrid, nonprofit •84% of U.S. DMOs and nearly half of Florida DMOs are non-government, with the trend continuing toward nonprofit structures •Most common: Nonprofit 501(c)(6) model •Case studies: Visit San Antonio, Experience Kissimmee o Both cited improved speed to market and talent recruiting o Recommended need for strong support for transition with stakeholders and government entities o Build solid transparency and accountability into contract Stakeholder Input •6 hybrid sessions + 12 Project Steering Committee meetings - Weekly now One-on-one discussions with TDC members •Strong support for restructuring from all groups •Concerns: startup funding, continued transparency/accountability 7 Page 678 of 5261 8 Research Results & Analysis Competitive U.S. DMOs – $11M-$15M & Structure Government DMOs report revenue based on their marketing budgets, while nonprofit DMOs typically report total revenue Source: Civitas PRO Organization Name State Revenue*Type of Organization Visit Carlsbad CA $14,887,000 501(c)(6) Visit Austin TX $14,816,000 501(c)(6) Visit Pittsburgh PA $14,230,000 501(c)(6) Visit Park City UT $14,133,000 501(c)(6) Visit Bradenton FL $14,107,000 Government Meet Minneapolis MN $13,674,000 501(c)(6) Naples, Marco Island, Everglades Convention & Visitors Bureau FL $13,644,000 Government Visit Tucson AZ $13,573,000 501(c)(6) Desoto County Convention and Visitors Bureau MS $13,439,000 Government Visit Pensacola FL $13,319,000 501(c)(6) Experience Grand Rapids MI $13,241,000 501(c)(6) Hilton Head Island Bluffton Chamber of Commerce SC $12,930,000 501(c)(6) Visit Chattanooga TN $12,383,000 501(c)(4) See Monterey CA $12,151,000 501(c)(6) Discover Flagstaff AZ $12,100,000 Government Visit Greenville SC $12,056,000 501(c)(6) Experience Rochester MN $11,903,000 501(c)(6) Cincinnati USA CVB OH $11,644,000 501(c)(6) Explore Branson MO $11,626,000 501(c)(6) Visit Long Beach CA $11,531,000 501(c)(6) Tourism Santa Fe NM $11,480,000 Government Visit Knoxville TN $11,092,000 501(c)(3) Visit Milwaukee WI $11,056,000 501(c)(6) Page 679 of 5261 Florida DMO Governance Comparisons 9 DMO Name (Visitor Tax %)County Total TDT Collected FY 2024 "Advertising and Promotion" FY 24-25 Base for FY 2026 Percent TDT Spent on Advertising Staff Counts Website 2025 Governance Model Bradenton Area CVB (6% as of 8/1/24)Manatee $21,880,570 $16,467,791 75.3%13 Government Brevard County/Space Coast (5%)Brevard $25,260,000 $13,400,000 53.0%14 Government Florida Keys TDC (5%)Monroe $61,000,000 $30,000,000 49.2%5 * Government Amelia Island CVB (5%)Nassau $11,531,453 $4,624,180 40.1%11 501c6 Fort Myers/Sanibel (5%)Lee $44,262,302 $12,500,000 28.2%31 Government Discover The Palm Beaches (6%)Palm Beach $86,700,000 $19,799,608 22.8%52 501c6 Naples, Marco Is., Everglades CVB (5%)Collier $48,600,000 $11,000,000 22.6%9 Government Visit Tampa Bay (6%) + TID for Convention Center Hillsborough $65,035,754 $11,300,000 17.4%43 501c6 Visit Sarasota (6%)Sarasota $48,381,296 $7,900,671 16.3%15 501c6 Visit Jacksonville (6%) (city only)Duval $10,534,102 5,277,956 50.1%22 501c6 ** Visit Daytona Beach (6%) Halifax area only)Volusia $12,196,425 $12,154,750 99.7%17 Quasi-Government Visit Pensacola Escambia $22,023,172 $13,319,000 60.5%22 501c6 Visit Panama City Beach Bay $37,620,422 $9,111,112 24.2%24 501c6 * Organization is restructuring - had high of 11 staff in in 2024 ** City contract. FY starts May 1. Data is ahead of other DMOs Collier Notes: Will have added approximately 1,600 new hotel rooms to its inventory 2024-26 Collier County Tourism's marketing budget reached $6M in FY 19 and has consistently remained in the $5.5M - $6M range since then. Temporary restrictions occurred in FY20 through FY 22 due to COVID-19, with the budget returning to $6M in FY 23 and continuing at that base level. FY 25 saw an increase to the marketing budget to a total of $11M due to a supplemental investment of $5M. In Sept. 2025, a supplemental investment of $5M was approved again to retain the marketing budget at $11M. Page 680 of 5261 Proposed New DMO Structure •County retains funding and responsibility for beaches, beach parks, Sports Complex, County Museums and TDC administration •TDC continues advisory role on all TDT expenditures •New DMO continues as County’s official DMO and handles marketing, promotion, group sales and events through contract with County. This would require Bylaws, Articles of Incorporation, Policies and Procedures, IRS reporting, audits Funding Opportunities Current Funding Source: •TDT allocations New Funding Opportunities: •Expanded Co-op marketing •Membership or Partnership fees •Grants, special event revenue •Voluntary TID or destination marketing fee for CVB marketing initiatives •Potential TDT increase to 6% 10 Page 681 of 5261 Staffing of New Entity •Current staff offered transition opportunity to new entity or stay with County •Expanded roles in marketing, sales, engagement, operations •Outsourced HR, legal, IT for efficiency and cost control Transparency & Accountability •Regular reporting to TDC, BCC, tourism industry stakeholders •Adopt recently approved CVB Strategic Marketing Plan •Maintain current Performance Metrics: tax collections, visitor spending, website traffic, social media, group leads •Maintain current ROI measurements: Direct visitor spending, economic impact, average stay, Marketing Investment vs Visitor Spending 11 Page 682 of 5261 Recommendations and Next Steps 12 Page 683 of 5261 Final Recommendation •Form a nonprofit 501(c)(6) DMO contracted with Collier County •Benefits: optimized visitor spending, agility, flexibility, engagement •Maintain current oversight with contracts, reporting, transparency measures Next Steps •Collier County Administration - Approved •Productivity Committee - Recommended •Resource X - Endorsed •TDC Recommendation - December 12 •Board of County Commissioners Consideration - 1st Quarter 2026 •Formation of a new nonprofit DMO 13 Page 684 of 5261 Collier County CVB Governance Restructure Study Report Prepared by Wert Marketing Group & Civitas December 2025 Page 685 of 5261 1 MEMORANDUM To: Collier County Leadership From: Chris Fabian, ResourceX Subject: Priority Based Budgeting (PBB) Assessment of the CVB Governance Restructure Recommendation Date: Thursday, November 13, 2025 Executive Summary After reviewing the Collier County CVB Governance Restructure Study and its recommendation to transition the Tourism Division to a nonproflt 501(c)(6) Destination Marketing Organization (DMO), I flnd the proposal to be fully aligned with the principles, intent, and best practices of Priority Based Budgeting (PBB). From a “textbook PBB perspective,” this is precisely the type of structural reform PBB calls on governments to consider: placing services in the governance model where they can be delivered most effectively, efficiently, responsively, and sustainably, while maintaining the appropriate level of public oversight. The recommended transition advances the county’s goals around performance, resource optimization, transparency, and long-term flscal stewardship. Based on this analysis, the principles of PBB would strongly support the recommendation. Page 686 of 5261 2 PBB Assessment of the Recommendation 1. Alignment With PBB’s Core Philosophy: “Match Services With Their Most Effective Service Delivery Model.” PBB asks governments to continually assess whether programs are best delivered: • internally by government, • shared through public–private partnerships, or • provided through alternative governance models such as nonproflts or hybrid organizations. The CVB restructuring recommendation is a clear example of PBB’s guiding philosophy: Govern where you must, enable where you should, outsource where it increases value, and partner where it expands impact. The study demonstrates that a nonproflt DMO model would: • increase marketing agility, • improve talent acquisition and retention, • expand available resources through private-sector funding models, • elevate stakeholder engagement, and • reduce administrative burden for the County. These outcomes strongly reinforce the PBB principle of ensuring that services are provided in the most effective and efficient way, regardless of historical tradition or legacy organizational structure. PBB supports this shift because it directly enables better service outcomes at a lower cost and with greater strategic fiexibility. 2. Reinforces PBB’s Goal of “Optimizing Resources Toward the Highest Community Impact.” Tourism promotion is a high-impact economic driver for Collier County. The evidence in the study shows: Page 687 of 5261 3 • signiflcant staffing constraints within the current government model, • risks to competitiveness and responsiveness, and • limitations on marketing execution speed, particularly during crises. A restructured DMO would expand capacity through: • increased fiexibility in hiring and compensation, • ability to rapidly deploy marketing strategies, • industry-led engagement structures, and • supplemental funding streams unavailable to government agencies. From a PBB standpoint, this means greater impact for each public dollar, with the ability to grow revenue-generating activity (visitor spending, tourist development tax performance, economic impact). PBB views such leverage as ideal resource optimization. 3. Advances PBB’s Principle of Transparency & Accountability Some may assume that moving a function outside government reduces accountability. The recommendation actually enhances it. The study outlines: • strong contractual oversight, • continued TDC and BCC reporting, • alignment with the existing strategic marketing plan, and • adoption of public reporting and IRS 990 transparency requirements. From a PBB lens, accountability is not dependent on whether staff are public employees, but whether performance metrics, reporting structures, and oversight mechanisms are robust and enforceable. The proposed model clearly meets; and in some ways exceeds current accountability structures. Page 688 of 5261 4 4. Supports PBB’s Intent to “Reduce Reliance on General Fund Resources Through Alternative Funding Models.” While the Tourism Division is not general-fund flnanced, this recommendation demonstrates a foundational PBB concept: shifting select functions to models with diversifled funding allows government to protect general fund fiexibility for core governmental services. The nonproflt DMO structure opens the door to: • co-op marketing revenue, • partner fees, • grants, • event revenue, • tourism improvement district assessments, • and broader industry investment. This reduces pressure on public revenue sources and expands the overall resource base, a key PBB strategy for long-term flscal resilience. 5. Reflects PBB’s Best Practice of Responding to Operational and Environmental Realities The study highlights clear operational pressures on the existing model: • reduced staffing, • increasingly competitive talent environment, • rising visitor volumes, • signiflcant crisis-response needs. PBB explicitly encourages governments to make structural changes when service demand and operational complexity outgrow the constraints of internal delivery. The DMO recommendation is a responsible and forward-looking application of this practice. Page 689 of 5261 5 Our Position Based on both the empirical flndings in the study and Priority Based Budgeting’s core principles, ResourceX fully supports this recommendation. It refiects: • sound flscal stewardship, • strategic alignment with community priorities, • operational efficiency, • enhanced transparency, and • an increased ability to achieve the outcomes that matter most to Collier County residents, businesses, and visitors. The proposed governance restructure represents a textbook example of PBB in action: placing services in the structure where they can achieve the greatest impact, with the greatest efficiency, and the greatest fiexibility, while ensuring accountability remains flrmly in place. Page 690 of 5261