TDA 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.
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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.
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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.
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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
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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
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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.
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Next Meeting Date: Wednesday, October 30, 2013
Kim IIufham, President/CEO Chuck Pennington, Secretary
Minutes located in TDA Board Minutes Book XII
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