Funding Your Future Sarasota, Florida March 2019
Three E’s of Travel Impact
Three E’s of Travel Impact - Employment - Putting 1 in every 9 people to work in the U.S. SOURCE: US Travel
Three E’s of Travel Impact - Experience - ➢ Breaks down barriers ➢ Draws new investments ➢ Provides infrastructure, transportation and attractions for locals ➢ Family vacations leads to happier kids ➢ Gift of an experience more meaningful than things
Last year, Visitors to Sarasota spent $1,752,358,900, which supported 14% of all jobs in Sarasota. Travel to Sarasota generated $113,482,900 in total tax revenue in FY 2018. SOURCE: Travel Utah
Billions in Marketing Spending $0.0b $0.5b $1.0b $1.5b $2.0b $2.5b $3.0b $3.5b $4.0b $4.5b $5.0b State Travel Prom otion Source: Advertising Age & US Travel Association 2015
The Vital Role of Destination Promotion SOLUTION: CHALLENGE DESTINATION PROMOTION The primary motivator of a trip is Articulates the brand message that is 1 usually the experience of a consistent with consumer motivations destination Effective marketing requires Pools sustained resources to 2 scale to reach potential visitors generate impact
Misconceptions of Tourism Promotion “It’s nice to have, but not “It’s only an “It’s soft.” critical.” amenity.”
“I don’t think government should spend money on tourism and marketing at all.” - Former Florida Speaker of the House, Richard Corcoran February 3, 2017
Tourism Funding Stability Can a vote of a local governing body or the state legislature re-direct tourism promotion funds? 10
Preventing Funding Loss Beg-A-Thon Partnership ➢ Annual request ➢ Multi-year agreement ➢ Competition with other priorities ➢ No Competition ➢ Funding = variable & unreliable ➢ Funding = multi-year & reliable ➢ Funding may be withheld entirely ➢ Local government required to provide baseline funding ➢ Loss of partnership = TID termination **
“The tourism industry was always asking me for more money from the state budget…I don’t like to spend money very much, so I’m glad you figured out how to spend your own money …if you had to deal with me, your life would be more difficult.” Former California Governor Jerry Brown -- May 3, 2017
Won’t I lose my existing funding if I do a TID?
Hoteliers will not support an increased levy on their customers.
District creation efforts that levy an additional charge are controversial.
A TID is too expensive.
Additional marketing won’t make a difference in my destination.
How Tourism Improvement Districts Work Tourism businesses Collected by the Managed by the DMO pay an assessment local government Characteristics • Level playing field — no free riders • Transparency • Reliability • Pass-through to customer
National TID Statistics Assessment 56% 174 TIDS Gross Structure Revenue % Most Recent: San Antonio, TX 44% (December 2018) Fixed $ Amount AMOUNT RAISED Low $10,000 15 STATES Median $740,000 High $39,000,000 Total $400,897,806
Memphis, TN FUNDING A DESTINATION
Memphis Budget $9.4 million INITIAL BUDGET -2.8 million PRE PLANNED DIVERSION =6.6 million POST CUT BUDGET +5.3 TID +2.8 NEW COUNTY MATCH CURRENT BUDGET =14.7 million
Portland, OR FUNDING EFFECTIVELY
Portland Budget
Tourism Improvement District Assessment History $16.0 $14.0 $14.0 $11.7 $12.0 $9.5 $10.0 $8.3 $8.0 $6.0 $4.0 $2.0 $0.0 FY 14 FY 15 FY 18* FY 21* Budget Budget Projections
Wichita, KS FUNDING TO SCALE
Wichita Problem Solution
Momentum Gained Total Budget $5.4M TID Funds Initial Budget $2.6M $2.8M
Wichita
Dallas, TX FUNDING EFFECTIVELY
Dallas Convention & Visitors Bureau $15M in 40% allocated Fund assessments for contribution collected incentivizing 10:1 ROI annually events
Tourism Improvement District Plan
TID Legal Authority 1 BID Law 2 Home Rule
Steps to TID Formation 1. Hotel & local government outreach 2. Stakeholders determine parameters and service plan 3. Plan prepared 4. Hotel approval process 5. Local government approval process
Thank You! Contact Us Tiffany Gallagher Eastern US Brand Manager tgallagher@civitasadvisors.com (800) 999-7781
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