DOOR COUNTY TOURISM ZONE COMMISSION Annual Meeting June 18, 2015
WHY ARE WE HERE? DCTZ Commission Explain Mission Review 2014 performance Discuss 2015 issues Door County Visitor Bureau Review 2014 trends Review current marketing initiatives 2015 Answer questions
COMMISSION BACKGROUND… In April 2007, ten Door County Sister Bay Ephraim Gibraltar communities formed a Tourism Village of Egg Town of Egg Baileys Harbor Harbor Harbor Zone according to Wisconsin Sevastopol State Statutes. Washington Island Jacksonport Nasewaupee joined on August 1, 2007, and Liberty Grove Washington Gardner Gardner joined on May 1, 2008. Town of Brussels Clay Banks The seven remaining Forestville municipalities joined by the end Village of City of Sturgeon Town of Forestville Bay Sturgeon Bay of 2008—the Tourism Zone now Union encompasses all of Door County.
PURPOSE OF THE ROOM TAX GOVERNED BY WISCONSIN STATE STATUTE 66.0615(1)(fm) (fm) "T ourism promotion and development" means any of the following that are significantly used by transient tourists and reasonably likely to generate paid overnight stays at more than one establishment on which a tax under sub. (1m)(a) may be imposed, that are owned by different persons and located within a municipality in which a tax under this section is in effect; or, if the municipality has only one such establishment, reasonably likely to generate paid overnight stays in that establishment: 66.0615(1)(fm)1. 1. Marketing projects, including advertising media buys, creation and distribution of printed or electronic promotional tourist materials, or efforts to recruit conventions, sporting events, or motor coach groups. 66.0615(1)(fm)2. 2. T ransient tourist informational services. 66.0615(1)(fm)3. 3. T angible municipal development, including a convention center.
WI STATUTES GOVERN CREATION OF A “ZONE” AND A “COMMISSION” 66.0615(1m)(b)2 2. If 2 or more municipalities in a zone impose a room tax under par. (a), the municipalities shall enter into a contract under § 66.0301 to create a commission under par. (c). If no tourism entity exists in any of the municipalities in the zone that have formed a commission, the commission shall contract with another organization in the zone to perform the functions of the tourism entity. Each municipality in a single zone that imposes a room tax shall levy the same percentage of tax . If the municipalities are unable to agree on the percentage of tax for the zone, the commission shall set the percentage. 66.0615(1m)(b)3 3. A commission shall monitor the collection of room taxes from each municipality in a zone that has a room tax. 66.0615(1m)(b)4 4. A commission shall contract with one tourism entity from the municipalities in the zone to obtain staff, support services and assistance in developing and implementing programs to promote the zone to visitors.
COMMISSION MISSION STATEMENT The Door County Tourism Zone Commission’s mission is to: Collect the room tax on behalf of its member municipalities in a fair and efficient manner. Work in partnership with the Door County Visitor Bureau to support its marketing efforts in tourism promotion and development for the Tourism Zone as a single destination for transient tourists who are reasonably likely to generate paid overnight stays. Keep all parties and businesses associated with the Tourism Zone and the Room T ax informed on the Commission’s activities.
THE COMMISSION’S TASKS Collect the tax Contract with a tourism marketing agency Disburse the funds Review and monitor marketing plans & results Enforce the tax ordinance
VISITOR BUREAU TASKS Develop annual marketing plan and budget Evaluate and hire vendors Execute the plan Evaluate results
AND NOW A WORD ABOUT THE TAX… All municipalities have a 5.5% room tax rate 30% of collections go to municipalities to use for any purpose 66% goes to DCVB for marketing 4% remains with Commission for expenses All Commissioners are volunteers The Zone has a part-time Administrative Assistant
COMMISSION YEAR IN REVIEW - 2014 At Year End 2014, the Tourism Zone had 956 permit holders. In 2014, 121 new permits were issued, of which 46 (38%) of the newly permitted properties were found by the Commission through investigative work and permitted through compliance channels. Due diligence by the Commission staff to ensure all Door County lodging owners are aware of tax obligations led to less than 4.7% noncompliance (more than 30 days late). Pursuit by the Commission itself, accountants Kerber Rose & Associates, attorney William Vande Castle, and Credit Management Control has resulted in solidified policies to bring non-permitted properties, non-filing, and late paying properties into compliance. The Tourism Zone Commission has entered its ninth year of existence. The purpose for creating the Tourism Zone Commission was to collect a 5.5% room tax that could fund a greatly expanded marketing program through the Door County Visitor Bureau. By the end of 2014, the TZC expects to have collected $29,286,806 in room tax and will have turned over $19,329,292 to the Visitor Bureau for marketing for the period 2007 − 2015. Because of the efforts of the Door County Visitor Bureau (DCVB), tourism continues to grow in Door County. The 2014 room tax collections were up 4.79% over 2013 collections.
SHOW ME THE MONEY… St Statement of Rev even enues, Expen enses, and Changes in Net et Assets Percent Operating Revenues 12/31/2014 Allocations Room tax $3,835,202* Operating Expenses 4% Administration $ 125,244 Payments to DCVB $ 2,518,376 66% $ 1,147,544 Distribution to Municipalities 30 % Total Operating Expense $3,791,164 100 % Interest earned $ 0 $ 189,575 Total Net Assets 12/31/2014 * includes late collections
MUNICIPAL IMPACT Municipality 2014 Share 30% To Municipality 2013 City of Sturgeon Bay $ 567,932.00 14.87% $ 170,379.60 $ 530,735.00 Village of Egg Harbor $ 353,730.00 9.26% $ 106,119.00 $ 337,418.00 Village of Ephraim $ 455,470.00 11.93% $ 136,641.00 $ 455,180.00 Village of Sister Bay $ 455,657.00 11.93% $ 136,697.10 $ 431,823.00 Town of Baileys Harbor $ 271,034.00 7.10% $ 81,310.20 $ 256,274.00 Town of Brussels $ 247.00 0.01% $ 74.10 $ - Town of Clay Banks $ 4,461.00 0.12% $ 1,338.30 $ 3,143.00 Town of Egg Harbor $ 317,505.00 8.31% $ 95,251.50 $ 301,351.00 Town of Forestville $ 88.00 0.00% $ 26.40 $ 78.00 Town of Gardner $ 26,823.00 0.70% $ 8,046.90 $ 23,484.00 Town of Gibraltar $ 608,540.00 15.94% $ 182,562.00 $ 573,775.00 Town of Jacksonport $ 73,645.00 1.93% $ 22,093.50 $ 69,299.00 Town of Liberty Grove $ 247,327.00 6.48% $ 74,198.10 $ 241,693.00 Town of Nasewaupee $ 82,252.00 2.15% $ 24,675.60 $ 75,942.00 Town of Sevastopol $ 266,313.00 6.97% $ 79,893.90 $ 259,452.00 Town of Sturgeon Bay $ 26,874.00 0.70% $ 8,062.20 $ 22,101.00 Town of Union $ - 0.00% $ - $ 84.00 Town of Washington $ 60,607.00 1.59% $ 18,182.10 $ 62,007.00 TOTALS $ 3,818,505.00 100.00% $ 1,145,551.50 $ 3,643,839.00 *30% to Municipality does not include lates fees and interest
LODGING STATISTICS As of 5/29/15 Permit its b by Munic icip ipal alit ity Brussels 0% Union Sturgeon Bay - Town Clay Banks 0% 3% Baileys 1% Washington Sturgeon Bay - City Harbor Island Egg 3% 8% 7% Harbor - Town 7% Egg Sister Bay Harbor - 8% Village 7% Sevastopol Ephraim 8% 7% Gardner 2% Liberty Grove 16% Gibraltar 14% Forestville - Town 0% Jacksonport Nasewaupee Forestville - Village 5% 3% 0%
Lodging Statistics As of 5/29/15 Per ercentage o of Per ermi mits b by Proper perty Type (9 (974 U 4 Units a as of of 5/ 5/29/ 29/15) Other Resorts 1% 4% Hotels Inns 8% 4% Condos 1% B&Bs 3% Homes 79% By y Uni nit t Percentages ( (4714 U Uni nits ts as of 5/29/15) Other (Units) Homes (Units) 2% 19% Hotel Units B&Bs (Units) 28% 3% Condos (Units) 5% Inns (Units) Resort Units 4% 39%
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