TDA Board Meeting August 29 2012
NEW HANOVER COUNTY TOURISM DEVELOPMENT AUTHORITY
BOARD OF DIRECTORS
AUGUST 29, 2012
PRESENT: John Andrews, County Restaurant
Jonathan Barfield, Chairman – New Hanover County
Commissioners
David Cignotti, Mayor – Wrightsville Beach
Anne Marie Hartman, Hotel – (150+) Wrightsville Beach
Kim Hufham, President/CEO – NHC TDA
Frank Jones, Hotel – (150-) Wilmington
Mike Keeler, Hotel – 150 (+) Wilmington
Dean Lambeth, Mayor – Kure Beach
Carl Marshburn, NHC Attraction
Sabina Newman, Greater Wilmington Chamber of Commerce
Chuck Pennington, County Bed and Breakfast
Jimmy Pope, Hotel – Carolina Beach
Ray Rothrock, Mayor – Carolina Beach
Bill Saffo, Mayor – City of Wilmington
Lisa Wurtzbacher, New Hanover County Finance Officer
EXCUSED: Anne E. Brodsky, Neal Johnson
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
Karla Thompson, Technology/Systems Manager
GUESTS: George Durant, Brandon Agency
Sue Eaton, Wilmington Convention Center
Chairman John Andrews 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 our new Board members Lisa Wurtzbacher, New Hanover
County Finance Officer and Ray Rothrock, Mayor, Town of Carolina Beach.
ITEM #1 – EXCUSED
Anne Brodsky, Neal Johnson
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ITEM #2 – MINUTES APPROVAL – MAY 23, 2012 AND JUNE 27, 2012
[Motion made by Sabina Newman, seconded by Frank Jones and
unanimously accepted to approve the May 23 and June 27, 2012 TDA Board
minutes as read.]
ITEM #3 – WILMINGTON CONVENTION CENTER UPDATE – SUE EATON
Sue Eaton, General Manager of the Wilmington Convention Center, said they’d had
a wonderful year and one-half now in operation. They have had the opportunity to
go through two fiscal periods (first being 8 months long through June 2011; second
being July 2011 through June 2012.) Number of events the first year was 73; the
second year was 113. Says outlook this year is positive. Said during the first fiscal
period hosted seven conventions and during the second period hosted 9. Currently
hosting 9 conventions and waiting on confirmations on others. In addition, doing
other events to include public shows, banquets, meetings, etc. There were 45,000
people in attendance during the first fiscal period; 56,000 during the second period.
114 events booked thus far this period. In January 2013, hosting the Realtors and
the NC Governor’s Conference will be held in March, 2013. Staff is busy.
Chairman John Andrews thanked Sue for the update as well as her hospitality to
the TDA Board that evening.
ITEM #4 – FINANCIALS/ROT REPORT – LISA WURTZBACHER
New Hanover County Finance Officer Lisa Wurtzbacher stated the auditors would
be coming in next month so hope to have an audit report for FY 11-12 to bring
before the TDA Board in October.
For Fiscal Year July 2011 – June 2012, we have revenue figures over expenditures
of about $274,000. Overall, expenditures are about 89% of what was budgeted.
Looking at the first 3%, expenditures are about $1.5 million. That is 97% of what
was budgeted. Looking at the second 3%, not quite as much which had been
budgeted was spent. We were under budget at $394,000 which came to 81% of the
budgeted expenditures and this brought the overall percentage down some.
Review of revenues shows good news. The first 3% was over budget by $85,000 or
6% over. The second 3% was $400,000 over budget or 26% over.
[Motion made by Commissioner Jonathan Barfield, seconded by Mike
Keeler and unanimously approved to accept the financial report as
presented.]
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ITEM #5 – FUNDING REQUESTS – Carolina/Wrightsville Beaches – KIM
HUFHAM
The Town of Carolina Beach respectfully requests TDA funds in the amount of
$122,880.97 for various events during the period of March, 2011 – April, 2012.
With the Town’s assistance, business owners and volunteers are combining their
efforts to promote tourism with various family-oriented events.
Breakdown: Boardwalk Makeover Events - $34,728.00; Employee Assistance for
Various Events - $2,100.22; Pleasure Island Chamber of Commerce Donation -
$77,800.00; Convention Center Artwork (new request) - $2,580.17; Banners for
Entrance to Carolina Beach (new) - $2,639.13; Light Fixtures for Boardwalk (new) -
$3,033.45.
Previous Related Requests: Requests for reimbursements have been approved for
previous expenditures (as above) since 5/23/06 by the New Hanover County TDA
Board.
Funds are available and this amount is being requested for reimbursement upon the
TDA Board’s approval.
[Motion made by Mayor Bill Saffo, seconded by Sabina Newman
and unanimously carried to approve expenditure requests in the amount of
$122,880.97 to Carolina Beach for expenses incurred for various events
during the period of March, 2011 – April, 2012.]
The Town of Wrightsville Beach respectfully requests TDA funding for a total
amount of $75,800.00 for various events during FY 2012-2013. A breakdown of the
various amounts/projects follows:
Holiday Flotilla Fireworks, Public Relations, Advertising and Media Support:
$28,960.00 ($25,000.00 to help fund fireworks, advertising, public relations and
media support associated with the planning/preparation of the 2012 NC Holiday
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Flotilla plus $3,960.00 for public safety support.) This will be the 29 year of the
Holiday Flotilla and continues to be one of the premier tourist attractions of the
year for Wrightsville Beach and the entire southeastern Carolina region. (2004)
Trolley Stop Restroom in the amount of $12,000.00 to help support the necessity to
maintain a public restroom in the hub of the beach business area, commonly known
as the Trolley Stop. This area is a focal point for visitors to Wrightsville Beach.
(2005)
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Christmas Program and Decorations in the amount of $1,000.00 to help fund the
purchase of new decorations and hardware to support the continued effort to create
a traditional Christmas Holiday decoration display at Wrightsville Beach. (2006)
Ocean Rescue All-Terrain Vehicle in the amount of $5,500.00 to replace the current
ATV which has been in service since 2007. The Wrightsville Beach Ocean Rescue
operates four ATVs which are vital for rapid emergency response as well as routine
patrols. (2005)
Ocean Rescue Personal Watercraft replacement in the amount of $13,500.00 to
support the Ocean Rescue Program. This is a critical element in beach safety and
services to complement their Beach Patrol, EMS and Park Ranger operations. This
would replace a 2007 one and trailer.
Beach Ambassador Program in the amount of $6,800.00 which was initiated in May,
2011 and is designed to greet beach visitors and respond to questions about activities
and beach-use rules. Also serves to complement the Park Ranger, Beach Patrol and
Ocean Rescue functions to help provide a safer beach environment. (2011)
Beach Patrol Rhino (4-seat ATV) in the amount of $8,000.00 to replace a similar
vehicle that has been in service since 2006. The Beach Patrol operates two of these
which are vital for rapid emergency response as well as route patrols. The Rhino
provides extra capability to carry equipment and/or additional passengers and is
exceptionally effective in providing mobility to the Beach Patrol Operations.
Funds are available for FY 2012-2013.
[Motion made by Mayor Bill Saffo, seconded by Carl Marshburn and
carried with the following exceptions to approve funding in the amount of
$75,800.00 for all of the above expenditure requests as outlined: 12 Ayes
except for one Nay for Christmas Program/Decorations (Chuck Pennington).
John Andrews recused himself due to conflict of interest.]
ITEM #6 – MARKETING PLAN PRESENTATION 2012-2013 (CVB staff,
Brandon Agency)
President/CEO Kim Hufham began the 2012-2013 Marketing Plan presentation by
advising how excited we are about what will be happening in the upcoming year as
well as the results of 2011/12.
The State of Tourism:
2011 Tourism Expenditures of $425.84 million shows an increase of 6.2%.
New Hanover County tourism generated $39.18 million in local/state taxes.
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More than 5,100 employed in travel and tourism-related jobs - $94.44 million
in payroll.
Each New Hanover County resident’s taxes were offset $190.02.
We maintained a #9 ranking among North Carolina’s 100 counties with a #2
ranking among coastal counties.
Kim reported that 2011/2012 Rooms Occupancy Tax Collections were up 9.29%
(first 3%) for the Fiscal Year (July, 2011-June, 2012); calendar year (January-June,
2012 – up 14.06%.) Second 3% collections for Carolina, Kure and Wrightsville
Beach all showed increases. Total ROT collections for 2011-12 were $8,481,234 and
Kim gave a breakdown of where these collections were distributed.
CVB highlights for FY 11/12 upward trends were due to several things:
Launched new portal website and mobile sites = visits up 73%.
Developed new ad campaigns for destination and the three beaches with new
branding.
Group bookings up 235%.
Had a successful meetings and convention marketing effort.
Hosted the NC Governor’s Conference closing luncheon in Concord as we
will be the host city for the 2013 conference.
Installation of new CVB signage.
Kim advised that with all Marketing Plans come challenges and the Board’s help
will be needed. Some of those challenges include:
Beach nourishment – funding mechanism for shortfalls.
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Budget:
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New inventory – expanded marketing efforts.
Technology.
Increased sales efforts in sports and meetings and conventions.
Visitor Services shift to digital.
Industry Participation:
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Hotel responding to leads.
Being able to obtain occupancy and ADR figures.
Participation in industry surveys.
Website updating (Calendar of Events.)
Discussion of CVB Budget Comparisons included the top four above ours: Myrtle
Beach with a budget of $23 million; Charleston’s budget of $11 million; Outer
Banks - $5,895,897; and Crystal Coast - $2,353,000. The Wilmington and Beaches
budget ranks #5 in the comparison of those used with a budget of $1,941,688.
Monitoring Legislative Issues is key. Feel there will be a minimum of 48 new
legislators after this year’s election. Some of the issues which need constant
monitoring: School Calendar Law; Online travel companies and ROT; Tourism
related expenditures; Rent by owners – paying their ROT; NC Tourism funding
and beach re-nourishment funding.
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Shawn Braden, Executive VP of Marketing, addressed FY 11/12’s Marketing
Analysis and Insights:
Leveraged new brand to appeal to a broader audience.
Launched new portal web and mobile site to strengthen visitor fulfillment
and conversion.
Changed conventional media mix to more efficient digital/online/social media
mix.
Committed to descriptive/intuitive URL.
Complemented beaches shoulder season marketing with summer.
Enhanced measurement and evaluation metrics.
Shawn discussed the marketing challenges that the CVB has faced: Having one
single destination with 4 individual areas; competing with a modest
marketing/media budget increase; outdated research; limited technology to help
integrate marketing assets and measure results.
Shawn also went over successful new brand, web and mobile site launches and noted
web site visits have increased by 73%. The new website has made all the difference.
The new website has provided expanded information (Wilmington: February-June,
2012:
Visits: 637,868
Visitors: 545,136
Time on Site: Average of 6.81 minutes
Email Signups: 1,980
Guide Signup: 9,532
Top Markets for above statistics include Wilmington, Raleigh, Charlotte,
Fayetteville, Durham.
In addition, Google is a top generator with top states being Virginia, Ohio,
Pennsylvania, New York and Georgia. Shawn also went over the top referring
domains along with top searched keywords.
Important Website insights include:
Portal concept lends strong support as WilmingtonandBeaches.com is the top
referring domain to the beaches.
Shifts in states/NC cities as spring season approaches.
Shifts in popular pages/exit links for lodging properties as spring season
approaches.
Increased visits and page views as spring season approaches.
Future enhancements will improve site load time and search engine
opportunities.
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Inquiry point of origin ranking includes NC, PA, FL, NY, OH, VA and
focused mainly on NC, PA, FL, VA.
Shawn indicated that from July 2011 – June 2012, there were 240,754 inquiries,
largest percentage being digital. She also noted that lodging, attraction and
restaurant inquiries from February-June, 2012’s number was 180,000 and this is the
number we want to see keep growing.
Highest advertising inquiries included:
PPC Portal with 41,450 inquiries; eSpecials – 29,845 inquiries; STS
Newspaper Insert – 12,104 inquiries; O Magazine – 11,748 inquiries;
Email/Direct Response – 8,052 inquires (have higher conversion with this.)
The Mass(ive) Media’s strategy is to do a few things in this area very well. From
1990 with 4 areas of media to 2012, now are working with more than 27+ media
outlets. Awareness issue of additional media insights was discussed. Email
registrations increased by 18% due to increased promotion on new website; Visitors
Guide requests increased by 8% due to increased promotion on new website.
Facebook likes/fans increased by 40% due on focus on engagement,
promotions/contents, posting of photos and video and re-tweeting.
For FY 2012-13, Shawn advised we are not in an economy where we can pick and
choose our customers. Other core trends and shifts include:
Wilmington eSpecials indicate that 25-45% of click-throughs are special
offers related.
Smaller ad budgets require larger reach and larger ad sizes to compete.
Emphasis on digital marketing and digital assets generate quality leads and
higher conversion.
While niche marketing is intelligent, pursuit dilutes ability to effectively
penetrate core audiences/regions/seasons.
Niche marketing best approached through earned and owned media (not
paid media.)
Iconic photography and multimedia are key tactical components (this
includes water photography.)
Database management and consumer engagement through opt in-mail and
social media are critical to success.
The internet is the primary marketing fulfillment resource.
Website requires real time, content-rich and interactive presence offering
planning tools and digital concierge.
Shawn went into detail on leisure objectives as well as leisure strategies to include
‘year round advertising and launching the Trip Advisor Destination page featuring
banner ads, photos/videos, virtual Visitors Guide, offers and events and visitor
center maps. In addition, creating a presence on Pinterest, monitoring Google Plus
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and geotargeting and Facebook messaging. A visitor profile research study will be
done this coming spring and summer.
George Durant of the Brandon Agency spoke on the Agency always focusing on
higher quality to first of all maintain the portal we have; building equity into the
brand; and doing research.
George said the CVB and the Agency met with a focus group in May and started out
with the Voice of the Water which was started in FY 11-12. He maintained the focus
group likes this campaign and feels iconic elements are what makes tourists focus on
their dream vacation.
Different ads shown to the Board by George and what it says to us…. Voice of the
Water Campaign which will again have the water speaking to our guests and George
wants these ads to spread through everything we do. Definitely seeing results; all of
the rebranding is wonderful and recognizant of what is happening with research.
Looking forward to an extension of the Voice of the Water Campaign. (Each ad was
passed around so the Board could see exactly what George was talking about.)
Mikie Wall, Vice President of Sales and Services, presented FY 12/13 Group and
Convention Sales efforts.
Group sales will continue to focus on expanding into new markets; build upon the
success of existing markets; generate more interest in shoulder season bookings.
Objectives include targeting travelers through third party sellers; convention
planners; meeting planners; tour operators and group leaders; retail travel
agents as well as AAA/CAA offices; increase amateur sporting events held in
New Hanover County; provide sales opportunities for travel industry
partners; increase bookings through groups who utilize the convention
center; foster partnerships with local, state and national meeting
planners/tourism organizations.
Continue to provide quality service and assistance for groups in our area.
FAM tours and site visits.
Host Cycle NC in October, 2012.
Attend trade shows that target our preferred markets.
TEAMS in partnership with SportsNC.
AENC Trade Show (with local partners.)
ABA (including sponsorship and FAM tour.)
NC Military Trade Shows.
Local Wedding Shows.
Contract with Passkey to facilitate tracking room nights to start out with
sports events and eventually add conventions and other events, etc
Maintain memberships in industry organizations.
Several trade shows will be attended.
Monthly sales calls in the Raleigh area.
Organize a sales blitz and luncheon in Raleigh (local participation.)
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Host site visits for potential clients.
Two golf outings with meeting planners.
Two direct mail campaigns to be done during the year directed towards
convention sales.
Mikie further stated that the “success after the sale” is to provide good services to
booked business and several things will be done to make sure this is accomplished.
She stated that our past fiscal year (11-12) was a good year and definitely reflected
an upswing in the economy and the sales department had a very positive year.
Targeted groups included associations, corporate, educational, fraternal,
government, military, religious, reunions, social, sports and tour and travel. The
scope of the market was State, Regional and National. She said that leads and
proposals were up 19% and definite bookings were up 235% (almost 1/3 of those
were convention center bookings.) Top market segments were association, social
and corporate. Total economic impact was $49,000,000.
Lost business was down 64%. Some of the reasons for lost business included no
hotel adjacent to the convention center; lack of hotel response to leads; dates not
available; hotel rates not competitive; selected another city and convention center
space rates either reduced or free in other competitive cities.
Connie Nelson, PR/Communications Director shared how important public
relations coverage is and showed some editorial highlights from FY 2011/2012.
During last Fiscal Year, the economy starting to come back and a lot more people
blogging, we had 35 press trips to our area; media contacts consisted of 2,441
traditional media; 929 social media (Twitter); free editorial/earned media consisted
of 16,361 column inches (22% increase); 1,758 placements (29% increase) and 1,636
non-media assists.
Connie said Communications will continue to support the Marketing Department’s
initiatives; communicate messages to potential visitors; continue media outreach; go
with different themes to entice our guests and promote local awareness of tourism.
Shawn Braden, Executive VP of Marketing, presented the objectives and strategies
for the three beaches (Carolina, Kure, Wrightsville), as well as the new creative.
ITEM #7 – PRESIDENT’S COMMENTS – Kim Hufham
A synopsis of President/CEO Kim Hufham’s comments include:
The annual presentation to New Hanover County Commissioners on
Monday, September 17 at 9 a.m. to be presented by Kim and Board
Chairman John Andrews.
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The Marketing Plan presentation to the Industry will be on September 18 at
9 a.m. at the New Hanover County Government Center.
The Passkey Industry Webinar to be presented on September 18 at 1 p.m. at
the New Hanover County Government Center.
Hope to present the FY 11-12 audit to the TDA Board during our October,
2012 meeting.
A survey will be sent to our TDA Board members in the near future on when
they prefer to meet (day of week and time).
ITEM # 8 – OLD BUSINESS/NEW BUSINESS
Question was asked reference the questionnaire received by Board members from
our auditors Martin and Starnes. As indicated, it is a requirement this be filled out
and returned to them.
ITEM #9 – CHAIRMAN’S REMARKS
N/A
Adjourn at 7:30 p.m.
Next Meeting Date: Wednesday, October 24, 2012
______________________________ __________________________
Kim Hufham, President/CEO Chuck Pennington, Secretary
Minutes located in TDA Board Minutes Book XI
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