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Tourism Promotion Areas October 22, 2014

Tourism Promotion Areas October 22, 2014. Presented by: Becky Bogard, Bogard & Johnson LLC, facilitator George Sharp, Olympia-Lacey-Tumwater Visitor and Convention Bureau Katherine Kertzman, South Seattle Regional Tourism Authority. Tourism Promotion Areas. What is a TPA ?

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Tourism Promotion Areas October 22, 2014

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  1. Tourism Promotion AreasOctober 22, 2014 Presented by: Becky Bogard, Bogard & Johnson LLC, facilitator George Sharp, Olympia-Lacey-Tumwater Visitor and Convention Bureau Katherine Kertzman, South Seattle Regional Tourism Authority

  2. Tourism Promotion Areas • What is a TPA? • Why is it effective?

  3. TPA Basics • Grew out of need for more tourism marketing funds for convention centers – origins in Spokane • Passed by legislature in 2003 – RCW 35.101 • Upon agreement of 60% of hoteliers and approval by appropriate local legislative authority, TPA is formed • Only hotels with more than 40 rooms eligible to participate • Fees may be up to $2 per room night and can be different within the TPA • Legislative authority contracts with tourism destination marketing organization or a similar organization to administer the program • Upon petition, hotels may dissolve TPA

  4. An Alternative – Parking and Business Improvement Area • Been in statute since 1971 and amended several times – RCW 35.87A • Often used to generate funds for downtown cleanup programs • Seattle used it to generate funds for tourism marketing • Similar process to TPA for formation and dissolution • Must show benefits to specific businesses included in program • No statutory limit on fees and tourism businesses other than hotels could be included

  5. The Thurston County Experience George Sharp, Executive Director Olympia-Lacey-Tumwater Visitor and Convention Bureau

  6. Thurston County Tourism Promotion Area Background • Olympia Lacey Tumwater Visitor and Convention Bureau staff and board began discussion with area hoteliers in 2003 to establish a TPA • Over the years elected officials and VCB board met with hoteliers to establish TPA • 2010 TPA stalled do to lack of confidence in the VCB to administer the program • 2011 TPA discussion renewed with new Executive Director hired, budget developed, signature gathering process began and VCB drafted all documents necessary for establishment of TPA (Petition, Interlocal Agreement, Contract) • 2011-2013 Meetings with Cities of: Olympia, Lacey, Tumwater and Yelm and Thurston County to create a interlocal agreement, continued meeting with Thurston County Lodging Association on budget and marketing plan

  7. Thurston County Tourism Promotion Area Background • June 2013-60% of hoteliers sign petition to create TPA • July 2013-County Commissioners agree to be the financial agency for the funds. Ordinance Drafted, 30 day waiting period prior to hearing. • November 2013 Ordinance approved, Department of Revenue Notified • April 1 2014, TPA funds begin being collected • July 1, 2014 Contract established between Thurston County and VCB for VCB to serve as the Tourism Promotion Area Manager • July 10, 2014 First deposit received

  8. Thurston County Tourism Promotion Area Key Factors • 60% of Hotels need to agree to establish TPA: • Concerns were: • $ fee per night, will consumers balk or make decision to go other places (finding-no) • Input into budget and marketing plan (worked with Lodging Association and 7 member TPA commission to create budget) • If it doesn’t work or not satisfied, can we kill it? (50% vote of hotels collecting the fund can dis-established the TPA) • Four Cities and County had to agree to work together and sign the interlocal agreement and allow 1 jurisdiction have authority over the funds

  9. Thurston County Tourism Promotion Area Key Factors • County and VCB had to agree to contract for VCB to be the TPA Manager (Hotelier insisted it be the VCB to be the TPA Manager) • Seven member TPA Commission consisted of Hoteliers recommended by the Thurston County Lodging Association to be approved by the board of County Commissioners • 75 day processing period by Department of Revenue before funding can start being collected. Funding collection only begins at the beginning of a quarter • Trust, Integrity, Honesty, Personalities, Politics, Perseverance were the key • Results: Additional $760,000 available per year for Marketing Thurston County for a total combined budget of $1,100,000. • New funds used for Staff, Marketing, Public Relations, Product Development with emphasis on meetings and the leisure market

  10. Seattle Southside – Innovative Structure Katherine Kertzman, Executive Director Southside Seattle Regional Tourism Authority

  11. Current SSVS Revenue & Service Structure

  12. Proposed Revenue & Service Structure

  13. Proposed Revenue & Service Structure

  14. Proposed Revenue & Service Structure

  15. Questions?Comments?DiscussionContact:Becky Bogard, Becky@bogardjohnson.comGeorge Sharp, GeorgeSharp@visitolympia.comKatherine Kertzman, Katherine@seattlesouthside.comDiane Schostak, Diane.Schostak@gmail.com

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