TDA 01-19-2011
NEW HANOVER COUNTY TOURISM DEVELOPMENT AUTHORITY
BOARD OF DIRECTORS
JANUARY 19, 2011
PRESENT: John Andrews, County Restaurants
Anne E. Brodsky, Hotel/Motel Owner Kure Beach
David Cignotti, Mayor Wrightsville Beach
Anne Marie Hartman, Hotel Wrightsville Beach
Kim Hufham, President/CEO NHC TDA
Frank Jones, Hotel (-)150 Wilmington
Mike Keeler, Hotel 150 (+) Wilmington
Dean Lambeth, Mayor Kure Beach
Joel Macon, Mayor Carolina Beach
Carl Marshburn, County Attractions
Bob McKoy, NH County Vacation Rentals
Sabina Newman, Greater Wilmington Chamber of Commerce
Chuck Pennington, County Bed and Breakfast
Jimmy Pope, Hotel Carolina Beach
EXCUSED: Jonathan Barfield, Chairman, NHC Commissioners; Avril
Pinder, Authority Finance Officer; Bill Saffo, Mayor, City of
Wilmington
ABSENT:
STAFF: Jeanette Foster, Administrative Services Manager/Recording
Secretary
Shawn Braden, Executive Vice-President of Marketing
Mikie Wall, Vice-President Sales and Services
Connie Nelson, PR/Communications Director
Sheila Boyd, NHC Finance
GUESTS: Shannon Bowen, Wilmington Star-News
Dan Wilcox, Carolina Beach Town Council
Patricia Matson, Lumina News
Kip Damrow, Alliance Hospitality
Kemp Burpeau, Assistant County Attorney
Sue Bulluck, Wrightsville Beach Holiday Inn
Connie Branch, Wilmington NC Cape Fear Coast
Eric Rylander, WAHA
Bruce Holsten, PI MAC
Sue Eaton, Wilmington Convention Center
Robert Butler, NC Press Release
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J.P. Finlay, Wilmington Business Journal
Scott Hazle, HGI
Thom Goolsby, North Carolina Senate
Susi Hamilton, North Carolina House
Mary Baggett, Blockade Runner
Nicolas Montoya, G.M., Blockade Runner
B. Sanker, Travelodge
Chairman Bob McKoy called the meeting of the New Hanover County Tourism
Development Authority Board to order at 5:30 p.m. at the Wilmington Convention
Center and welcomed Sue Eaton, General Manager of WCC. Thanked her for
hosting the Tourism Development Authority Board of Directors meeting.
Sue welcomed the Board and all guests. She advised events which the Center has
already had meet there as well as upcoming groups to use the facilities, and
discussed the excellent partnership between the WCC and the Wilmington/Cape
Fear Coast CVB.
ITEM #1 WELCOME TO NEW BOARD MEMBERS BOB MCKOY
Chairman Bob McKoy welcomed our new TDA Board Members: Anne Brodsky,
Kure Beach accommodations; Sabina Newman, Greater Wilmington Chamber of
Commerce; Jimmy Pope, Carolina Beach accommodations was welcomed back
since he previously served on the Board.
The Chairman also noted Anne Marie Hartman, Wrightsville Beach
accommodations has been reappointed for a second term as well as Carl
Marshburn, County Attractions.
Bob presented two outgoing Board members with plaques for six years of leadership
and service: Scott Cromartie and Ronnie Pernell.
Excused Board Members: Commissioner Jonathan Barfield, Avril Pinder, Mayor
Bill Saffo.
ITEM #2 MINUTES APPROVAL OCTOBER 27, 2010 AND SPECIAL
CALLED MEETING ON NOVEMBER 19, 2010.
[Motion made by Frank Jones, seconded by John Andrews and unanimously
accepted to approve the October 27, 2010 TDA Board minutes as read.]
[Motion made by Frank Jones, seconded by John Andrews and unanimously
accepted to approve the Special Called Meeting on November 19, 2010.]
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ITEM #3 FINANCIALS AND ROT REPORT SHEILA BOYD
Sheila Boyd started with the income statement under Marketing/Promotions and
noted most of the departments are under 50%. Trade shows are a little over, but
waiting for reimbursements from some of the partners who participated in some of
the shows. In convention center dues and memberships, a little over, but that can be
corrected with a transfer.
Sheila indicated revenues have been coming in good. Actually following the way
revenue forecast was done for this past year. We are getting back to where we
should be following the economic crunch we have been in.
Note was made of how the beach towns have done through November.
[Motion made by Frank Jones, seconded by Anne Marie Hartman and
unanimously carried to approve the Financial Report as presented.]
ITEM #4 FUNDING REQUEST KURE BEACH KIM HUFHAM
President/CEO Kim Hufham stated a funding request from the Town of Kure
Beach had been received for a total amount of $46,038.07. Funds are available for
this request.
$33,797.59 is for lifeguard services for the summer of 2010. They had previously
done a partial request and this is a continuation of same.
$12,240.48 incurred for the annual Street Festival which was held on April 24, 2010.
The objective of the Festival is to attract tourists to Kure Beach by providing an
enjoyable entertainment venue.
[Motion made by Mayor Joel Macon, seconded by Anne Brodsky and
unanimously carried to approve the funding request in the amount of
$46,038.07 for Kure Beach as presented.]
ITEM #5 PRESENTATION TO STATE LEGISLATORS KIM HUFHAM
NC Senator Thom Goolsby and NC House Representative Susi Hamilton in
attendance.
President/CEO Kim Hufham welcomed our special guests. Kim explained that she
wanted to give a brief overview to our representatives on what the New Hanover
County Tourism Development Authority d/b/a the Wilmington Cape Fear Coast
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Convention & Visitors Bureau is all about and to also share a couple of legislative
issues pertaining to the tourism industry.
Kim explained that by legislation we are the official destination marketing
organization for the Cape Fear Coast which incorporates Historic
Wilmington, regular Wilmington, Carolina, Kure and Wrightsville Beaches.
Kim discussed how we came about as the CVB in 1986 and how the first 3%
was formed. The New Hanover County Tourism Development Authority
was formulated in 2003 by legislation enacted to enable an additional 3%
rooms occupancy tax. With the enactment of the additional 3% occupancy
tax, the three beaches were given their portion point of collection for
promotions and activities (this additional 3% is split 50-50 between
promotions and activities for the beaches.)
Tourism is big business for our county and Kim enlightened our legislators
on what we do to bring tourists to the area. In 2009 (2010 figures not yet
available), visitors to New Hanover County generated an economic impact of
$390 million dollars to our community. Currently up 9% in ROT for 2010.
New Hanover County is number 8 among our 100 NC counties in the tourism
industry and number 2 among the NC coastal counties. Only Dare County
ranks above us in tourism expenditures. As a result of this, each resident of
our county gets a tax relief of over $185 per year; generates more than 5,200
tourism jobs which equates to over $92 million dollars in payroll for New
Hanover County. In addition, generates nearly $36 million dollars in state
and local taxes.
Regional impact of tourism in the three-county area of New Hanover,
tourism expenditures which was over $5 billion dollars in 2009.
The southeastern economic development region which is an eleven county
region represented
county region, three of the top ten counties are in that eleven county region.
Combined, New Hanover, Brunswick and Pender represent 54.63% of the
SE region. This three-county area represents over 10,000 jobs, over $811
million dollars in tourism expenditures, and a payroll of over $175 million
dollars.
Kim went over the rooms occupancy tax and how it is broken down per
legislation which was written in 2003 and how the dollars are actually broken
down.
bring tourists to the area to visit and spend their dollars, etc.
The CVB is funded by percentages as discussed on the first 3% ROT
collections. For the current fiscal year (2010-2011), our budget is 1.54
million and is used to promote the entire county. Through our budget, we
help administer an additional $1.4 million which is collected from the second
3% for the beach communities. We work with the marketing advisory
committees of the beach communities and the three beach towns to come up
with budgets and marketing plans to do additional promotions for the three
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beach communities. The three main target audiences we look at are
leisure/consumer; meetings/conventions; and group tours/motorcoach.
Currently for this Fiscal Year, we are up 9.54% in ROT collections. Had
nine consecutive months of growth. Cautiously optimistic that we are
starting to turn the corner.
Kim advised Senator Goolsby and Representative Hamilton that the New Hanover
CountyTDA would like to present the following legislative issues to them relative to
tourism and New Hanover County:
School Calendar Law which is very important to tourism. The New Hanover
County TDA would like to see our legislators support retaining the state law
that requires school starting August 25 or later. Starting earlier takes away
prime tourist season which hurts when the season is cut short.
Rent By Owner Issue about ½ of our inventory in New Hanover County is
condos, cottages, etc. in addition to hotels and motels. We would like to see
continued efforts by the North Carolina Department of Revenue enforce
appropriate taxation on non-compliant collectors.
Tourism Related Expenditures Would like to see our legislators support the
further definition of exactly what tourism-related expenditures are as
defined by the NC Session Law to ensure occupancy tax dollars are used
appropriately.
Both state representatives are for all tax bases being fair. Senator Goolsby asked
that the Tourism Development Authority put a resolution together on our legislative
issues. Said would help a lot better if the Board as a whole put this together as well
as any other issues the Board deems necessary.
Representative Hamilton is excited to serve on the State Tourism Board along with
Kim, who will also serve. Ms. Hamilton also noted that Representative Danny
McComas is Chairman of the Commerce Committee and how very important this
is. Kim advised that Representative McComas had planned to attend our Board
meeting this evening but had a previous meeting, but does plan to join us at another
meeting in the near future.
ITEM #6 BEACH RESOLUTION MAYOR CIGNOTTI/DAN WILCOX
Mayor David Cignotti explained that some months ago the Mayors of the three
beach towns got together to discuss common issues which led some members of the
beach marketing committees and elected officials meeting as well. This is where the
Beach to
the resolution with the TDA Board and make sure there are no misconceptions
about the resolution.
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The Mayor introduced Dan Wilcox to make a power point presentation on why the
beac
recommendations are and how we might move forward. The Mayor said that all
they are asking for is that the TDA listen with an open mind and that we work
together to make our area a stronger area for tourists.
Dan Wilcox, Town of Carolina Beach Council, indicated Lisa Weeks, Alderman of
Wrightsville Beach, assisted him in putting the presentation together and the
presentation was fully supported by all three beach towns.
A synopsi
The importance of tourism not only drives a large part of our economy, it
plays a significant role attracting people to the area. Key component in that
attraction is the synergy between Wilmington and the beach communities.
That synergy has also helped to attract and grow a film industry.
Between Wilmington and the beaches, we have something to attract
everyone. Many people first come for vacation and then eventually come to
live and work here.
Feels that changes in marketing technology coupled with more sophisticated
destination areas gives us an opportunity to improve the way we promote our
beach communities, and as a result, enhances Wilming
along the way. Feels current branding is likely costing New Hanover County
both marketing clarity and tourism dollars.
focus groups in the Research Triangle area (our primary feeder market) and
when North Carolinians were asked to name their favorite NC beach, no one
in the group mentioned any of the Cape Fear Coast beaches. In December,
Judy Randall, a destination researcher shared with the Carolina Beach
Marketing Committee that tourists do not identify with our individual beach
another indicator that our beach name brands are not resonating with our
existing tourists, let alone folks researching our area as the Cape Fear Coast.
Over time, beach names are losing their brand value and the beaches do not
see this as a good sign for them or New Hanover County in terms of
achieving a combined potential in the tourism market.
Mr. Wilcox discussed what th
included, what towns are referenced and out of 30 towns, most are outside of
New Hanover County and he indicated every time our own advertising
pointed to
other beaches/cities creating an open invitation for us to be skipped.
What about our present web address. Wilmington and the beach towns now
fall under the capefearcoast.com domain. This raises the question as to why
we are becoming more dependent on Cape Fear Coast as our identifier
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instead of moving away from it. A new web site is under construction and
things may look differently on it.
Landing page issues were discussed as well as our current logo, which Dan
says is used in a variety of ways and places sometimes with little or no
reference to the beaches.
Dan did say that generally speaking, although there are different versions of
marketing materials, some with more beach identity than others, our beaches
lose name identity and Wilmington loses a marketing advantage to associate
with our true names.
Some discussion on examples of highly successful vacation destinations that
most people recognize included Virginia Beach and Vail, Colorado. Dan
said both of these destinations are outside major cities, both rely on
relationships with those cities, yet they both see the benefit of maintaining
their own identity. These vacation destinations realize their promotion
under anything but their true names would likely result in declining tourism
and would likely reject those marketing strategies especially those being
funded with their own tax dollars.
While the beach towns feel strongly that their request represents a concern of
high importance, given their place in time, they also see great opportunity
and potential. It is precisely because of the work in progress (new website
design and hiring new creative groups) that it is a good opportunity to
address these potentials. The beaches feel the TDA is in a historic position to
clarify, sharpen and improve marketing messages for the betterment of all
involved.
Dan reinforced the opportunity and ability to join forces and present a much
ee beaches and for Wilmington and at the
same time, increase return on investment of tax dollars. The three beach
names in concert with Wilmington are the strongest tourism combination in
North Carolina.
Something the beach towns see as important is that the CVB de-emphasize
names. Since research has already been done and the problem identified,
this could be acted on quickly with creative options. In addition, the three
beach towns generate a substantial portion of the ROT and therefore
deserves serious consideration.
trying to diminish Wilmington in any way. He indicated that the beaches
and Wilmington all bring assets to the table that tourists want, but they do
not believe the beach communities should continue being labeled under any
identifier that has the potential to misdirect potential visitors.
The beaches are asking to be allowed to research other possibilities mainly
agreeable to all. They are asking that the CVB along with the beach towns
and Wilmington proceed with the preparation of several creative options that
could serve to replace the Cape Fear Coast prominence. Once complete,
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everyone would return to the Board to present options for review and
possible adoption. They are asking for expediency on this matter. Dan re-
emphasized the point that this is a no-lose situation, but if the Board does not
like the options presented, they would not be adopted.
Some discussion followed and Chairman McKoy advised that some steps are
already in place.
ITEM #7 KIM HUFHAM
President/CEO Kim Hufham appreciated input from the beach communities. Very
timely as Dan alluded to, because we are moving forward with our marketing efforts
and looking at the issues which he presented are a big part.
Kim shared some of the efforts taking place:
Cape Fear Coast Started identifying this in our strategic planning back in
the spring of last year that this was something we wanted to possibly look at.
In our current marketing plan we noted this under our external audience
perceptions. During our October, 2010 TDA Board meeting, the Board
approved sending the mayors a letter. The letter was sent out on November
3, 2010. In the letter, it was stated that the New Hanover County TDA is
aware of the concerns of the beach communities and the use of Cape Fear
Coast when marketing Wilmington and the beaches of Carolina, Kure and
Wrightsville. The New Hanover County TDA d/b/a the Wilmington/Cape
Fear Coast CVB will be conducting a review of qualified full-service
marketing creative agencies and will be selecting a firm to assist with these
marketing efforts for Wilmington, Carolina, Kure and Wrightsville Beaches.
partners through focus groups and industry meetings to position a new
visitor identity and develop ma
will be incorporated into all of 2011-2012 marketing programs. One of the
main things our new full-service professional agency will be working on is
the Cape Fear Coast issue and then the Board will have an opportunity to
meet with the agency as well as the MAC groups, focus groups, people in
Wilmington, mid-town properties, historic properties and get input from all
of these groups. Trust will have to take place with the professional agency as
they bring us their research and give us their input. The Board will have the
opportunity to decide which way they feel best markets the area.
Under the web site, the new site is in development. We realize the current
site is outdated and does need help. The Board approved a significant
expenditure for us to do the new web site.
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The wire frame phase has been approved by each individual beach
marketing advisory committee. On January 25 and 26, the destination portal
viewed by each MAC.
We are getting full input from the beach communities as we move forward
with the new web site.
for Carolina Beach, 10 for Kure Beach and 6 for Wrightsville Beach.
Currently they are being reviewed and evaluated by each respective beach
committee and then the destination committee which has been set up.
Following evaluation, a short list will be submitted for interviews by each of
the respective committees. The CVB will be involved in each of the
interviews in the selection of the agency which the committees feel best
represents their community. Hope to have decisions in February.
Kim indicated she had e-mailed each Board member some proposed
operational guidelines for the CVB working with the Tourism Marketing
Advisory Committees. Kim said she worked with the Assistant County
Attorney, Kemp Burpeau as well as Bob Simpson, the Wrightsville Beach
Town Manager on putting together the guidelines. Due to an increase in
structures. Having guidelines in writing will better facilitate communication
and work expectations between the CVB and the marketing advisory
committees. We are requesting the TDA to approve these guidelines and
then forward to the beach towns for their distribution to the marketing
advisory committees.
[Motion made by Carl Marshburn, seconded by Mike Keeler and
unanimously approved to accept the Tourism Marketing Advisory
Operational Guidelines as presented.]
President/CEO Kim Hufham gave an update on things happening at the CVB:
-February. She
has been a one-
past few months.
Getting ready to launch our spring campaigns by mid-February.
Had a great November and hope our seasonal campaigns continue to roll.
Under Communications/PR department, we had a very successful FAM tour
this past weekend which was held in conjunction with the Wilmington
Convention Center. The FAM included our PR department, a media
representative and three Associations. The media person, Layla Bellows is
with Collinson Publishing. They write the magazine for three very large
meeting and con
rst Point Management Services, the
N.C. Library Association and the N.C. Association of Realtors. All were
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impressed with the area. Hope to have a couple more prior to the end of the
year.
We had a ½ page article in the New York Times. We understand the NY
Times writer was here on vacation and did an article on some of the food
here. Very impressive to get this much coverage in the NY Times.
Had an article in Small Meetings Market. It focused on the new convention
center; however, any time we can get out name out on our destination, it is a
plus for all of us.
th
March 6 will be our 16
Opportunity on February 3-6 to host the N.C. Motorcoach Association. Over
200 are registered from all over North Carolina and will be staying at the
Wilmington Hilton Riverside.
Mikie is still putting her core committee together on sports marketing. Hope
to have first meeting sometime in February.
Last week Kim was involved with an economic development documentary
which Mayor Saffo has been working with UNCW on. He invited Kim to be
involved with one of the segments on economic development one of the
focuses was on tourism. Will advise when this will be coming out.
Attended the official opening of the Wilmington Convention Center and the
Biz Tech. Kim was one of the panelist at the WCC last week.
President/CEO Kim Hufham has been appointed to the Wilmington
Convention Center Advisory Committee.
Update on moving lease has been approved by the City. We are looking at
mid to late February for our move.
ITEM #8 OLD BUSINESS/NEW BUSINESS
Board member Chuck Pennington advised both the Verandas Bed and Breakfast
and Graystone Inn were again designated as Triple AAA Four Diamond properties.
Also noted that a magazine called Savor NC featured the Verandas as one of the
best Bed and Breakfast properties in North Carolina this year.
uced.
As a result of the legislative presentation and the suggestion of Senator Goolsby:
[Frank Jones made a motion, seconded by Sabina Newman and unanimously
carried that a resolution be submitted on the legislative issues which Kim
brought before our legislators this evening.]
ITEM #9 BOB MCKOY
Chairman Bob McKoy advised that between now and the next meeting, we will need
to come up with a slate of officers for this Fiscal Year. Bob proposed that he, John
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Andrews, Avril Pinder and Carl Marshburn be on the nominating committee to
present the slate at the March 23, 2011 Board meeting.
Motion made by Frank Jones, seconded by Chuck Pennington and
unanimously carried to accept the nominating committee as proposed by Bob
McKoy to present a slate of officers for the FY to the Board at the March
meeting.]
Kip Damrow to host our next meeting at the Courtyard By Marriott on Van
Campen Boulevard on March 23, 2011.
Adjourn at 6:55 p.m.
______________________________ __________________________
Kim Hufham, President/CEO Jeanette Foster, Recording
Secretary
Minutes located in TDA Board Minutes Book IX
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