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HomeMy WebLinkAboutTDA Board Meeting August 28 2024 NEW HANOVER COUNTY TOURISM DEVELOPMENT AUTHORITY BOARD OF DIRECTORS August 28, 2024 PRESENT: Natalie English- Wilmington Chamber of Commerce Kim Hufham – President/CEO – NHC TDA Nicole Jones – Wilmington Hotel (150-) Zach Brigman – Wilmington Hotel (150+) Bill Saffo – Mayor- City of Wilmington Tom Ullring- Carolina Beach Hotel Eric Credle- NHC Chief Financial Officer Allen Oliver- Mayor- Town of Kure Beach LeAnn Pierce- NHC County Commissioner Zeke Partin- Town of Wrightsville Beach Ross Pitman- NHC Bed & Breakfasts EXCUSED: Lynn Barbee- Mayor – Town of Carolina Beach Nicolas Montoya- Wrightsville Beach Hotel Hap Fatzinger- NHC attractions Angela Rhodes – NHC restaurants STAFF: Kim Little, Administrative Services Manager/Recording Secretary Shawn Braden, Executive VP Marketing & Strategy John Sneed, VP Sales & Services Connie Nelson, PR/Communications Director Lee Davis, Director of Website Linda Brothers, Senior Financial Analyst, New Hanover County GUESTS: Wendy Parker, Mythic Rachel Cobb, Mythic Ellery Wilkins, Mythic Chairman Tom Ullring called the meeting of the New Hanover County Tourism Development Authority Board of Directors meeting to order at the CVB offices at 5 o’clock. 1 ITEM #1 EXCUSED MEMBERS Chairman Nicole Jones noted excused absences for Lynn Barbee, Nicolas Montoya, Hap Fatzinger, Angela Rhodes ITEM #2 - RECOGNITION OF NEW BOARD MEMBERS- The Chairman recognized Dan Tollens as our newest NHC TDA Board Member representing Kure Beach Motel Owner/Manager. ITEM #3 –ILM Airport Update- Jeff Bourk Jeff Bourk presented the annual airport update: TDA incentives have been very helpful in assisting the Inbound Destination Marketing. The campaign overview is an utilizing a multifaceted approach, cast a wide-yet highly-targeted-net, to reach audiences interested in travel and increase awareness of nonstop flights to Wilmington, NC. 22-23 Avelo Airlines new route support such as: • New Haven, Baltimore-Washington, Wilmington DE • Orlando, For Lauderdale, Palm Beach, Tampa • Total: $500,000 23-24 • Miami (American): $125,000 • Chicago (United/American): $62,500 • New Haven & Wilmington, DE expanded service (Avelo): $125,000 • Minneapolis-St. Paul year 2 (Sun Country): $62,500 • Total: $375,000 24-25 • Hartford, CT (Avelo): $125,000 • Fort Meyers, FL (Avelo): $125,00 • Providence, RI (Breeze): $125,000 • Total: $375,000 2 ITEM #4 – APPROVAL OF BOARD MINUTES – May 28, 2024 & June 12, 2024 \[Motion made by Allen Oliver, seconded by Ross Pitman and unanimously approved to accept May 28, 2024, TDA Board minutes as presented.\] \[Motion made by Zeke Partin, seconded by Nicole Jones and unanimously approved to accept June 12, 2024, TDA Board minutes as presented.\] ITEM #5 – FINANCIALS/ROT REPORT –Eric Credle NHCTDA Treasurer Eric Credle presented the ROT collections report for the period July 1, 2023, through June 30, 2024. The ROT is up 2.4% compared to the FY24 budget. The revenues are currently up 5.2% compared to the budgeted revenues. The expenditure is down by 19.2% compared to the budgeted expenditure. Budget Amendment 2025-01 BA#2024-01 Part A- To appropriate the Purchase Order rollover for Audit Services and account for the payment against the Fiscal Year in which the expense is paid. Part B -To appropriate the Purchase Order rollover for the remaining work to be performed on the TDA Destination Master Plan and account for the payment against Fiscal Year in which the expense is paid. \[Motion made by Natalie English and seconded by Allen Oliver and unanimously accepted to approve Budget Amendment BA#2025-01A for $5,250 and BA#2025-01B for $96,500 as presented.\] Budget Amendment 2025-02 BA#2025-02 To budget revenues and appropriate expenditures associated with the City of Wilmington ARPA Funding to make tourism improvements in downtown Wilmington and the Riverwalk District per recommendations from the Riverwalk Assessment Study performed in FY2023. \[Motion made by Nicole Jones and seconded by Zeke Partin and unanimously accepted to approve Budget Amendment BA#2025-02 for $650,000 as presented.\] 3 Budget Amendment 2025-03 BA#2025-03 To budget revenues and appropriate expenditures associated with the County contributions toward expanded inbound air service to Wilmington International Airport (ILM) per the MOU between the TDA and the New Hanover County. \[Motion made by LeAnn Pierce and seconded by Natalie English and unanimously accepted to approve Budget Amendment BA#2025-03 for $250,000 as presented.\] ITEM# 5- PRESENTATION OF 2024/2025 Program of Work – Kim Hufham President/CEO Kim Hufham presented the Program of Work/ Strategic Plan for 2024/2025. A full presentation was presented to our Industry Partners on September 18, 2024. Kim Hufham presented the State of Tourism to the NHC TDA Board:  2023 Tourism Expenditures of $1,122.17 (Over $1 Billion) – 5.9% increase  NHC tourism generated $77.3 million in local/state taxes  More than 6,790 employed in travel & tourism related jobs –$278.9 million in payroll  Each NHC resident’s taxes were offset $323.85  #8 ranking among NC’s 100 counties Kim Hufham touched on the NHC TDA advocacy issues that face us, as well as challenges. • Normalization of Travel/ROT Collections • Occupancy Taxes • Workforce Shortage • Financial Outlook • School Calendar Law • Beach Renourishment & Inlet Dredging • NCDOT Project • Budget • Crime & Safety • Infrastructure Needs • Environmental issues FY 24-25 Advocacy Objectives: 4 • Support Advocacy issues that are will be identified in Master Plan & Strategic Destination Plan • Support Advocacy issues as identified with NCTIA, NCRLA & NCT&T Coalition • Maintain strong relationships with elected officials – State & Local • Strengthen and emphasize TDA’s relevancy to local community • Strengthening TDA Board of Director’s advocacy efforts at state and local levels • Championing those issues that are relevant to our local tourism industry • Advocate for long-term sustainable funding for beach renourishment & inlet dredging PR/Communications: FY2023/2024 Recap: • Press Trips:45 press trips (32 CVB; 13 agency/event assists) • Editorial Highlights: • Print: Route; Byways; Our State; AAA Living; Local Palate; Carolina Country; Business NC; • Digital: Carolina Eater; JohnnyJet.com; WellDefinded.com; Elite Daily, Cardinal & Pine • Broadcast: NBC Today Show (set-jetting); Tarheel Traveler (WRAL); NC Weekend (PBS NC) Blogs: @TravelToBlank; @NCTripping; @WorldToWander; @PierceCasa; @ImFixinTo • Other Activities: • Awareness: Rebrand, update, relaunch Wilmington and Beaches Destination Expert Course • Media Events: STS Media Meetup (Atlanta); Visit NC Lufthansa Media FAM Tour; Visit NC Media Mission (Boston); SATW Virtual Media Marketplaces (2); In-state Media events (2) • Workforce: 2,500+ hospitality brochures at CFCC & NHC school career centers & job fairs; 5 FY24/25  Support Marketing Initiatives Work with agency on out-of-state \[OOS\] press trips that align with demographic research and select geographic regions o Develop pitches based on travel trends and marketing campaigns o Create custom itineraries with unique, exceptional experiences o Host journalists that fit the OOS/affluent audience profile  Media Outreach Work with agency on out-of-state \[OOS\] press trips that align with demographic research and select geographic regions o Develop pitches based on travel trends and marketing campaigns o Create custom itineraries with unique, exceptional experiences o Host journalists that fit the OOS/affluent audience profile  Local Awareness  Reinforce Importance of Tourism in Community & Role of CVB o NTTW Travel Rally; Press Releases; Guest Speaker o Community Engagement – partners, stakeholders, residents o Navigator newsletter; Industry updates; Local media coverage  Destination Expert Training Course: Increase partner enrollment; course completion  Assist Tourism Master Plan team with outreach o Workforce Development:  Distribute hospitality brochures to high school/college career centers  Statewide hospitality workforce initiatives (NCTIA, NCRLA)  Engage with high school and college hospitality programs; Participate in high school & college job fairs and the NHCS Early College High School joint career event 6  Multicultural: Continue to update and expand multicultural content based on local heritage and experiences, Host multicultural journalists Expand Outdoor NC content Sales & Services FY24-25 Convention & Group Sales Strategies: Objective 1: Enhance client relationship building, allocating more time for relationship building Objective 2: Optimize bookings by making better use of all available venues. Objective 3: Increase average length of stay and attendee engagement with industry partners. Objective 4: Update sales priority initiatives based on input from industry partners   FY24-25 Sports Sales Strategies Objective 1: Continue attendance building successes with existing sporting events Objective 2: Plan and implement internship program Objective 3: Identify target audience for new nCino Sports Complex Objective 4: Identify & book a TEAM USA event Objective 5: Plan and host multiple Sports mini-fam tours Objective 6: Compile and distribute a year-round countywide sports event calendar Marketing: FY23-24 Marketing: A Look Back 1. Fielded 2024 Brand Perception Research Study to track improvement on benchmarks and inform future strategies 2. Refreshed ad creatives with motion/animation and audio sound effects 3. Completed inbound marketing campaigns with Avelo, Sun Country, American & United Airlines 4. Developed new sports video direct mailer 5. Website delivered: • +31% more active users • +33% more sessions for 4.3M sessions • 650K partner referrals, +11% • 49,741 visitor guide digital views. 6. Website coop-ads for industry partners generated 5.6M impressions and 81,627 clicks to partner websites, +8% 7. Developed 34 eBlasts to 129,514 Wilmington and Beaches subscribers, +2.7% subscribers 7 8. Published 64 blogs generating 349,049 page views 9. Social media following reached 559,866, +5.9% 10. Began production of 4 new destination marketing videos FY24-25 CORE MARKETING TACTICS Artificial Intelligence • Marketing will evaluate partnerships to utilize AI tools and an AI trip planning assistant to more efficiently help visitors plan trips to the area. 2024 Holiday Campaign • Working with the City of Wilmington, Downtown Business Alliance, Wilmington Downtown, Inc., Wilmington Chamber of Commerce and downtown industry partners to launch a holiday promotion using city ARPA funds. NHC America 250 • In 2026, North Carolina (and U.S.) will commemorate the 250th anniversary of signing of the Declaration of Independence. The inaugural North Carolina First in Freedom Festival, taking place in Southeastern NC Feb. 21-28, 2026, will celebrate 250+ years viewed through historical NC events and the arts. • Marketing will promote NHC America 250 events on the website, social media platforms and in CVB-owned emails. Mythic representatives presented the Future Partners Brand Perception Research Results 2024: The key takeaways from the brand research study conducted in partnership with Future Partners (formerly Destination Analysts) on behalf of Wilmington and Beaches CVB. This survey is meant to be repeated regularly to track improvement against key benchmarks and inform future strategies (targeting, media mix, geographic priorities, etc.) Key objectives include:  Measuring the performance of the destination and its brand amongst leisure travelers across 12 key markets and  Helping us further understand high-potential visitors and their perceptions of, and interest in, the area as a destination 8 Takeaway #1: Awareness of Wilmington & Beaches has increased from the previous year, even as we compete with beaches that outspend us on marketing. Takeaway #2: Despite this increase in awareness, we still have work to do in building more awareness and familiarity. Takeaway #3: Destination familiarity, appeal and excitement continue to be key areas of focus after seeing some decline this year. Takeaway #4: The likelihood of visiting Wilmington & Beaches in the next 5 years has significantly increased each year since 2021 with a faster rate of growth than competitor beaches Takeaway #5: Our advertisements continue to effectively convey key advertising and brand attributes. Takeaway #6: Importantly, the ads also increase travelers’ likelihood to visit the destination. And among those who recently visited, almost all of them (92%) claim that the ads had an impact on their decision to visit. Takeaway #7: Our messaging continues to be aligned with notable strengths in the quality of beaches, restaurants and beach amenities. Takeaway #8: As we saw last year, strengths increased significantly among those aware of Wilmington and Beaches Takeaway #9: We are continuing to get smarter about high-potential conversion markets Campaign Overview: Performance Insights While we are still in the early phases of the new strategy, we are seeing positive indications that we are: • Increasing visitation from further away The average miles travel for all overnight visitors increased 2% from 263 to 270. • Lengthening season for visitation The average miles travel for all overnight visitors increased 2% from 263 to 270. Lengthening season for visitation:  67.1% of trips came in the off season (JAN-MAY, SEP-DEC), up from 66.7% in 2022.  Increasing share of overnights  Share of overnights (62.5%) up from 61.1% in 2022.  Increasing overnight OOS visitation Out of state overnight visitation up in 2023 (41.0%) compared to 2022 (40.5%). 9 Adara Overview: • New research partner as of January 2023 • Connects Wilmington & Beaches digital media campaigns and website activity to visitors, flight bookings, room nights and hotel revenue from 850M+ monthly active travelers • Allows a data-driven view of the trip planning window, top origin markets & types of travelers (individual, families, etc.) • Allows Wilmington & Beaches to optimize paid media spending to the most valuable visitors • Provides a view of total economic activity driven by tourism (amount of total credit card spend while in-market, average spend per traveler, etc. Unified Paid Media FY23-24 Results: Summary: We are still in the relatively early stages of the new strategy and creative and are seeing positive trends across the board - over-benchmark CTR, high engagement numbers and positive ROAS in terms of driving website traffic and interest. For FY 24-25 we’ve optimized our media plans to take advantage of key learnings. • For FY 24-25 we’ve optimized our media plans to take advantage of key learnings such as: Decreased overall vendor partners to streamline investments • Decreased overall vendor partners to streamline investment • Replaced vendors that were under-performing • Decreased the number of Out-of-State markets to provide additional weight to most viable, responsive markets • Leaning into strategies that are delivering high impression levels for awareness and indicating the ability to also drive familiarity and consideration, such as sponsored content, video and additional partner paid social opportunities • Increased spend with partners that are performing well both in front end metrics and Adara, such as Garden & Gun and YouTube 10 Channel Strategy Result Highlights Cost-effective tactic to keep Overall campaign engagement rate Paid Social* Wilmington & Beaches top of mind, was 5.91%, outperforming the and drive engagement benchmark of 5% Drive engagement and frequency with Hyper-local niche content performed Social Amplification* an already-familiar audience highest, driving over 600k engagements Drive awareness through compelling Skippable YouTube had a completion Video visuals and storytelling rate of over 60% Cost-effective tactic, allowing us to Delivered over 180k site clicks, with flight longer and extend seasonality the new creative continuing to Programmatic Digital overperform, delivering a .28% CTR on Sojern compared to .08% benchmark Lower cost tactic to reach a large Drove 53,721 visitors to the website, number of potential visitors with while exposing another 594,721 eBlasts* interests aligning with Wilmington & potential visitors through email opens Beaches Continue balancing high-impression Produced engaging content to drive awareness with opportunities to drive both awareness and consideration, Sponsored Content consideration and intent through evidenced by CTR as high as 14% channels like sponsored content through over 28,000 inquiries. Low-cost tactic to reach potential Delivered over 3 million Paid Search* visitors who are actively searching impressions, and 415k clicks and a for our destinations CPC of $0.78 11 Wilmington and Beaches Barcelona Method: The Barcelona Method measures PR efforts based on predetermined goals to highlight the quality of coverage over quantity and gauge the true impact of coverage. This method aligns with VISTNC and our agencies Coverage is “graded” on the following metrics: o Placement type o Target market/geography o Key messages o CVB assets / CTA links o Tone Each agreed upon element contributes to a score that helps “grade” a given media placement. Developed 10 new blogs: • Adult and Child-Free Vacations • Local Favorites • Where to Stay Waterfront • Exploring the River and Historic Districts • What’s New in 2024 • Set-Jetting • Chef Sunny Gerhart Profile • How to Experience the NC Azalea Festival • Find your Perfect Trail • How to Cool Off This Summer \[The FY24-25 Program of Work Presentation can be found in the NHC TDA Exhibit Book XIIII\] ITEM #6 -PRESIDENT’S COMMENTS – Kim Hufham FY24/25 Presentation of the CVB’s Program of Work will be held on September 18, 2024, at the Wilmington Convention Center. 12 Tourism Master Plan: • Master plans will guide visitor management while identifying opportunities for smart tourism growth and product development investments that enhance resident quality of life. • Working on stakeholder input sessions and a Resident Sentiment Survey to guide plans' direction. • Plan implementation will begin in 2025. CB Centennial Celebration: • To support the 2025 Carolina Beach Centennial Celebration, CB MAC/marketing will develop a special campaign promoting the events and activities visitors can enjoy when they attend ITEM #7– CHAIRMAN’S COMMENTS – Tom Ullring ITEM #8- OLD BUSINESS/NEW BUSINESS- ADJOURNMENT There being no further business to come before the NHC TDA Board of Directors, Motion to adjourn at 6:30 pm made by Nicole Jones and was seconded by Ross Pitman and carried unanimously. Next meeting – October 30, 2024 ______________________________ __________________________ Kim Hufham, President/CEO Lynn Barbee, Secretary Minutes located in TDA Board Minutes Book XIIII 13