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HomeMy WebLinkAboutTDA 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 1 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.] 2 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 3 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 4 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. 5 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 6 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, 7 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. 8 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 9 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 10 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 11