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HomeMy WebLinkAboutTDA Board Meeting August 28 2013 NEW HANOVER COUNTY TOURISM DEVELOPMENT AUTHORITY BOARD OF DIRECTORS AUGUST 28, 2013 PRESENT: David Cignotti,Mayor—Wrightsville Beach Anne Marie Hartman, Hotel— (150+)Wrightsville Beach Kim Hufham, President/CEO—NHC TDA Neal Johnson, County Vacation Rental Property Frank Jones, Hotel— 150 (-) Wilmington Mike Keeler, Hotel— 150 (+)Wilmington Dean Lambeth, Mayor—Kure Beach Bob Lewis, Mayor— Carolina Beach Carl Marshburn, County Attractions Sabina Newman, Greater Wilmington Area C of C Chuck Pennington, County Bed and Breakfast LeAnne Pierce, Carolina Beach Hotel/Motels Angela Rhodes— County Restaurants Bill Saffo, Mayor— City of Wilmington Lisa Wurtzbacher, Authority Finance Officer EXCUSED: Anne Brodsky, NHC Commissioner Jonathan Barfield STAFF: Jeanette Foster, Administrative Services Manager/Recording Secretary Connie Nelson, Communications/Public Relations Director Karla Thompson, Technology/Systems Manager Mikie Wall, VP of Sales and Services Shawn Braden, Executive VP of Marketing Linda Brothers, NHC Financial Analyst GUESTS: George Durant, The Brandon Agency Craig Bloszinsky, Town of Kure Beach Chairman Carl Marshburn called the meeting of the New Hanover County Tourism Development Authority Board to order at 5:30 p.m. at the Coastline Convention Center. ITEM #1 —EXCUSED Chairman Marshburn acknowledged excused absences for Anne Brodsky and NHC Commissioner Jonathan Barfield. 1 ITEM #2—MINUTES APPROVAL—MAY 29 AND JUNE 26, 2013 [Motion made by Mayor David Cignotti, seconded by Sabina Newman and unanimously accepted to approve the May 29 and June 26, 2013 TDA Board minutes as read.] ITEM #3—FINANCIALS/ROT REPORT—LISA WURTZBACHER Lisa Wurtzbacher, Authority Finance Officer presented the financial report for the Fiscal Year ending June 30, 2013 and also briefly reported on July, 2013 (beginning of new Fiscal Year-2013-2014.) Lisa advised that the auditors would be coming in September to do our Fiscal Year 2012-2013 audit and it is scheduled to be presented at the October 30 TDA Board meeting. Results through June 30, 2013 for our first 3% in expenditures show we are $32,000 under budget; 2"a 3% shows $2,600,000 under budget; convention center expenditures came in at $15,893 under. In discussing the Fiscal Year end (2012-2013), FY end figure for first 3% showed an increase over last fiscal year of 3.61%. 2"a 3% - Carolina Beach had an increase of 3.72%; Kure Beach— 4.51% increase; Wrightsville Beach— 1.16% increase; City of Wilmington— 4.98% and the Convention Center District—3.69%. Briefly went over July (first month of new fiscal year 2013-2014). [Motion made by Mayor Bob Lewis; seconded by Mayor Dean Lambeth and unanimously accepted to approve the Financials/ROT report as presented.] ITEM #4— FUNDING REQUEST—WRIGHTSVILLE BEACH—KIM HUFHAM President/CEO Kim Hufham advised we had received funding requests from the Town of Wrightsville Beach totaling $67,300.00 for various events during Fiscal Year 2013-2014. Breakdown is: Holiday Flotilla Fireworks, Public Relations, Advertising and Media Support: $29,000 requested associated with the planning/preparation of the 2013 North Carolina Holiday Flotilla. This will be the 301h year for the Flotilla and it continues to be one of the premier tourist attractions of the year for Wrightsville Beach and the entire Southeastern Carolina region. 2 Trolley Stop Restroom TDA funds requested in the amount of$12,000 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. Christmas Program and Decorations in the amount of$4,000 to help fund the purchase of four holiday decoration units to be mounted on utility poles in prominent locations. All of the Christmas decor plus the Flotilla and the lighting of the Christmas tree usher in the Holiday Season. TDA funding in the amount of$5,500 to help with the purchase of a new ATV is needed to replace a similar vehicle that has been in service since 2008. The WB Ocean Rescue operates four ATV's which are vital for rapid emergency response as well as for routine patrols and standardly need to be replaced after 4-5 years of service. TDA funding is requested in the amount of$10,000 to help fund the purchase of a new Beach Patrol ATV to replace a similar vehicle that has been in service since 2007. Funding will cover not only the ATV, but also police safety equipment. Two of these ATV's are in operation and the one being replaced has been in operation since 2007. Beach Ambassador Program TDA funding requested in the amount of$6,800 which was initiated in May, 2011 and is designed to greet beach visitors and respond to questions about activities and beach-use rules. In addition, serves to complement the Park Ranger, Beach Patrol and Ocean Rescue functions to help provide a safer beach environment. [Motion made by Mayor Bill Saffo, seconded by Mayor Dean Lambeth and unanimously accepted to approve Wrightsville Beach's funding requests in the amount of$67,300.00 for 2013-2014.] ITEM #5— MARKETING PLAN PRESENTATION—2013-2014 President/CEO Kim Hufham presented the 2013/2014 Marketing Plan. The theme this year is based on "Relevancy." The Board supported doing a new visitor profile study during FY 2012-2013 as one had not been done since 2005. Needed to find out what is relevant to our tourists (their needs, wants, etc.) Kim began the presentation with the State of Tourism— how we did last FY: Tourism expenditures showed an increase of 8%; NHC tourism generated $40.3 million in local/state taxes; more than 5,360 employed in tourism. In addition, each NHC resident's taxes were offset $192.56. We maintained our#9 ranking among the State's 100 counties and remained at #2 in coastal counties. 3 Rooms Occupancy Tax Collections—Fiscal Year collections for 2012-2013 0 3% were up 3.61%; 2"a 3% showed Carolina Beach with a 3.72% increase; Kure Beach with a 4.51% increase; Wrightsville Beach with a 1.16% increase; Wilmington— 4.98% increase and the Convention Center District with a 3.69% increase. In addition, Kim gave a 2012/13 ROT distribution breakdown for total collections of $8,788,961. Challenges the TDA/CVB are faced with include: Beach renourishment (funding mechanism for shortfalls); budget to include new inventory (expanded marketing efforts); new technology, NC Commerce restructure. Film incentives are very important as has been proven this year. Industry participation to include hotels' responses to leads, occupancy and ADR, industry surveys and our calendar of events. Legislative issues as related to tourism include the school calendar law, rent by owners and rooms occupancy tax remittance, tourism-related expenditures, film incentives, NC tourism funding as well as beach renourishment funding. Advocacy issues: To strengthen relationships with elected officials, closely monitor issues at state and local levels, address visitor concerns per the 2013 Visitor Profile Study and the CVB's electronic annual report. Shawn Braden, Executive V.P. of Marketing, presented the 2013-2014 Marketing Objectives and stated they are right on course with the new research and that most of our business comes from within North Carolina. With this in mind, Shawn discussed the core marketing objectives and the challenges that are being faced. Shawn discussed the website, key performance areas, website traffic (top states are North Carolina, Virginia, Ohio, Pennsylvania, New York and Georgia.) In North Carolina, Raleigh and Charlotte are the top 2 markets. Website landing pages as well as top referring domains were reviewed with Google.com being the top domain. Shawn said that in Geographic media footprints, North Carolina is the top one. She indicated that advertising inquiries increased by 39% with total inquiries of 237,068 online, e-specials, print and facebook. Although still believe in print, spent more in e-specials. Shawn went into detail in other areas of email, e-specials, facebook, twitter, average click-thru-rate; average cost-per-click. Shawn discussed the North Carolina Resident Travelers Focus Group which was paid for by the Division of Tourism (2 focus groups in Raleigh and 2 in Charlotte.) Results showed that key travel motivations are for get-aways for relaxation, quality time with family/friends and favorite activities. Arts and cultural activities perceived as enhancement, not as primary travel motivation. In-state trips were more spontaneous, shorter (1-3 days), less planning and less expensive; not considered as a true vacation, but a getaway. Shawn also went over other results 4 such as destination ideas and selection, specific sources, activities identification and planning and social media and consumer reviews. NC Coastal Regional Visitor Profile Results showed that 21% of all NC visitors traveled to Coastal Region; 86% of all domestic visitors came for leisure. 5.5% came for business (includes meetings/conventions. Seasonal visits— 45% during June-August; 27% March—May and 17% September—November. The remainng 11% December—February. The Brandon Agency (George Durant) presented an overview and strategy of Wilmington and Beaches CVB Research Initiative discussing the questionnaire developed by the Brandon Agency and Sparks Research with the Wilmington and Beaches CVB clearly identified as the survey sponsor. The objective of the research was designed to yield vacation behavior while in destination, standard demographics and expenditures. Study also addressed new (digital) media usage and influence (websites, social media and e-specials) on vacation planning. George went into detail on the methodology of the research for Wilmington, Carolina, Kure and Wrightsville Beaches addressing overall opinions, look and feel, amenities, trip planning, activities, festivals and events. This entailed visitor characteristics and visitor insights. While the above was surveyed, the time of year was certainly addressed with summer and spring visits most likely depending on being a first time visitor or repeats. Planning and budgeting along with digital media influence were also key factors. Shawn Braden discussed Core Marketing Strategies for FY 2013-2014. Key points included: Serving up ads based on geos and seasons based on short lead times; visitor behavioral habits. Winning over first-time visitors through education of area assets; tout shorter, more frequent trips; keep repeat visitors by addressing what is new and communicating "big" vacation experiences from the riverfront to the oceanfront through various media forms. George Durant of the Brandon Agency emphasized the transformational effect of "Heeding the Call of the Water" through the various ads being utilized. Kim Hufham, President/CEO reviewed Public Relations/Communications for 2012- 2013. There were 39 press trips. Media contacts consisted of 2,864 traditional media; 844 social media (Twitter); 14,540 column inches in free editorial and 1,477 placements plus 1,344 non-media assists. A brief overview was given of what will be taking place in 2013-2014 in marketing department initiatives, media outreach, themes and local awareness of tourism. The group sales year-end summary and insights for targeted groups as well as a year-end summary and presented objectives and strategies for the new Fiscal Year 5 was presented. There will be a more aggressive following up system; direct sales campaigns to group tour operators; more efficient tracking, booking, services and opportunities. In the sports category, to attend Connect sports trade show, incentivize sporting events, realign current sales staff responsibilities and develop sports venue site map. In the services department, more industry training, brochure distribution to AAA and military in the southeast, more aggressive services/follow-up system, and visitor information booth hours and staffing increased during the peak season. Convention Sales strategies aim to keep current on new hotel developments, two days per month for Raleigh sales calls, share best practices with other CVBs. ITEM #6— PRESIDENT'S COMMENTS—KIM HUFHAM President/CEO Kim Hufham presented an overview of what will be taking place: ✓ Industry presentation to take place at the NHC Courthouse on September 11th at 9 a.m. ✓ Kim Hufham and Carl Marshburn will do a presentation to the NHC Commissioners on September 16th at 9 am. ✓ The NCTFSD Mid-Year Marketing Update will take place on September 12th at the Hilton Wilmington Riverside. Is free to attend, but must register. ✓ NC Commerce Department Update: Restructure—NC Economic Development Partnership 501 C 6 organization; new director for NCTFSD; funding for sports marketing division; cooperative marketing programs to continue as is. ✓ A letter to the City of Wilmington was sent on behalf of the TDA Board reference the riverfront bathroom situation. ✓ Regional Branding Initiative: CVB has been asked to serve on the Business and Industry Leadership Team (BIL,T). ✓ Quarterly activity report distributed. ITEM #7— OLD BUSINESS/NEW BUSINESS N/A ITEM # 8—CHAIRMAN'S COMMENTS—CARL MARSHBURN N/A There being no further business, motion was made and seconded to adjourn at 7:30 p.m. 6 Next Meeting Date: Wednesday, October 30, 2013 Kim IIufham, President/CEO Chuck Pennington, Secretary Minutes located in TDA Board Minutes Book XII 7