Funding Your Future Sarasota, Florida March 2019 Three Es of - - PowerPoint PPT Presentation

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Funding Your Future Sarasota, Florida March 2019 Three Es of - - PowerPoint PPT Presentation

Oct 30, 2023 309 likes •701 views

Funding Your Future Sarasota, Florida March 2019 Three Es of Travel Impact Three Es of Travel Impact - Employment - Putting 1 in every 9 people to work in the U.S. SOURCE: US Travel Three Es of Travel Impact - Experience -

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Funding Your Future

Sarasota, Florida

March 2019

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Three E’s of Travel Impact

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Three E’s of Travel Impact

  • Employment -

SOURCE: US Travel

Putting 1 in every 9 people to work in the U.S.

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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

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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

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$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

Billions in Marketing Spending

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CHALLENGE SOLUTION: DESTINATION PROMOTION

The primary motivator of a trip is usually the experience of a destination Articulates the brand message that is consistent with consumer motivations Effective marketing requires scale to reach potential visitors Pools sustained resources to generate impact

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The Vital Role of Destination Promotion

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Misconceptions of Tourism Promotion

“It’s only an amenity.” “It’s nice to have, but not critical.” “It’s soft.”

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“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

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Tourism Funding Stability

Can a vote of a local governing body or the state legislature re-direct tourism promotion funds?

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Preventing Funding Loss

Beg-A-Thon Partnership ➢Annual request ➢Competition with other priorities ➢Funding = variable & unreliable ➢Funding may be withheld entirely ➢Multi-year agreement ➢No Competition ➢Funding = multi-year & reliable ➢Local government required to provide baseline funding ➢Loss of partnership = TID termination

**

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“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

  • wn money…if you had to deal with me,

your life would be more difficult.” Former California Governor Jerry Brown -- May 3, 2017

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Won’t I lose my existing funding if I do a TID?

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Hoteliers will not support an increased levy on their customers.

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District creation efforts that levy an additional charge are controversial.

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A TID is too expensive.

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Additional marketing won’t make a difference in my destination.

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How Tourism Improvement Districts Work

Tourism businesses pay an assessment Collected by the local government Managed by the DMO

Characteristics

  • Level playing field—no free riders
  • Transparency
  • Reliability
  • Pass-through to customer
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National TID Statistics

174 TIDS

Most Recent: San Antonio, TX (December 2018) Assessment Structure

15 STATES

AMOUNT RAISED Low $10,000 Median $740,000 High $39,000,000 Total $400,897,806

44%

Fixed $ Amount

56%

Gross Revenue %

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FUNDING A DESTINATION

Memphis, TN

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Memphis Budget

$9.4 million

  • 2.8 million

=6.6 million +5.3 +2.8 =14.7 million

INITIAL BUDGET PRE PLANNED DIVERSION POST CUT BUDGET TID CURRENT BUDGET NEW COUNTY MATCH

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FUNDING EFFECTIVELY

Portland, OR

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Portland Budget

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Tourism Improvement District Assessment History

$8.3 $9.5 $11.7 $14.0 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 FY 14 FY 15 FY 18* FY 21* Budget Budget Projections

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FUNDING TO SCALE

Wichita, KS

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Problem Solution

Wichita

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Momentum Gained

Initial Budget $2.8M TID Funds $2.6M Total Budget $5.4M

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Wichita

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FUNDING EFFECTIVELY

Dallas, TX

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Dallas Convention & Visitors Bureau

$15M in assessments collected annually 40% allocated for incentivizing events Fund contribution 10:1 ROI

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Plan

Tourism Improvement District

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TID Legal Authority

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BID Law Home Rule

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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
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Thank You!

Contact Us

Tiffany Gallagher Eastern US Brand Manager tgallagher@civitasadvisors.com (800) 999-7781