Bed Tax Increase Set In Motion

Wednesday’s Revenue Enhancement Committee decided to recommend an increase in the bed tax collection from 3% to 5%. The committee decided based on a fairly detailed analysis on how to spend the money based on the needs of our area as a tourist destination.

The recommendation now will go before the Tourist Development Council (TDC) next Tuesday. If they approve the recommendation, it will have to be approved by the Bay County Commission before the tax can be collected.

Now, I can already see where the comments will go on this one. Many argue we don’t need the increase or wonder why we should increase taxes during dire economic times. Some may argue that increases such as these are partial to the larger resorts/attractions or that the TDC doesn’t know how to spend the money they have, why should we give them more.

But, the reality is that we are behind the times here and our competition passed us a long time ago. We’ve been behind for a while, and it is time to start catching up. The TDC and local authorities may not want to consider some things our competition is doing successfully **cough- lifeguards -cough**, but at least they are onto something here.

We are the lowest percentage wise bed tax collector in Northwest Florida, and other areas in South Florida that are competing for our sports marketing contracts are at 3 and 4 cents more than we are. I’ve said it before, and I’ll say it again, if we want to compete, we need more money.

One of the largest tourism segments at risk here are the sports teams and their families that come here in droves each and every year. At immediate risk are 2 sporting events currently being wooed by our competition. They account for nearly one third of all our sports tourism traffic which equals an estimated $10 million in revenue; roughly 60% of that number goes to room rates.

Right now, sports teams that come here for competitions have to travel all over Bay County to play and have expressed their desire on many occasions to play in one location. The beach is nice, but our facilities are in need of improvement. If we don’t improve, we’ll lose the business.

Capital improvements discussed yesterday as they pertain to sports marketing included:

Enhancements to Frank Brown Park – Add two additional softball/youth baseball pinwheels which would total 5 large fields and 4 small fields; renovate existing south pinwheel; develop one of the new fields as a marquee field with expanded seating and dugouts; add additional parking; add additional restroom facilities. This would total an estimated $4.9 million
Create a Sports Village for Baseball – Develop additional baseball pinwheels, nine fields total; develop one of the new fields as a marquee field; and new parking facilities and interior roads. It wasn’t clear whether additional land will be required for this. The total estimated cost (not including any land acquisition) is $6.6 million.
Create a Sports Village for Soccer -Develop 10 rectangular fields; upgrade four existing fields to artificial turf; develop one field as marquee field; and new concession and restroom facilities. Total estimated cost of $4.4 million
Create a Sports Village for Equestrian Grounds -Develop a horse ring; build 200×300 foot open air pavilion with dirt floor; grade sod and irrigate area for paddocks and horse barns. Estimated total is $2.4 million.
Indoor Field House – Develop 100,000 foot indoor field house that could be used to expand its sports product offerings to include mat and court sports. It was recommended that $32,000 be used for a feasibility study to guide the decision making process as to the specific scope of this project and which direction we should go. Estimated cost of $16 million.

The total costs of all sports-related improvements add up to $34.3 million.

Other improvements suggested include enhancing Aaron Bessant Park to have a permanant facility for concerts and theatrical performances. The improvements would include the development of a 5,000 seat amphitheatre/concert bowl by building an extended grass-covered berm and developing flat open fields out of the raw acreage that is currently not being utilized at the park. The total cost of improvement would be around $4 million.

As part of the marketing/awareness section, it was suggested:

Revise the schedule and increase the frequency of beach grooming from 26 times a year to 38 times per year, ramping up the frequency during the peak seasons.
Add 100 extra trash refuse containers along the beach during spring break at public beaches
Add 50 refuse containers specific to recycling of plastic bottles and aluminum cans during spring break at public beaches.
Develop :30 and :60 PSA’s to run on local networks on beach safety.
Purchase additional billboards to promote flag warning system.
Partner with Boomer Aviation to fly red flags behind the plane on red flag days during peak seasons.

Currently each penny garners an estimated $2.2 million each year with a total $6.6 million being collected per year right now. An increase of 2 pennies will result in an annual increase of around $4.4 million, which would result in an estimated total collected of $11 million per year. Of course, this number goes up if occupancy rates go up.

The current bed tax usage is as follows:

0.5% – TDC Marketing/Awareness/Operations
- Beautification Program
- Keep the Beach Clean Campaign
1.5% – CVB Destination Marketing
1.0% – TDC Beach Nourishment

The recommended usage if raised to 5%:

0.75% – TDC Marketing/Awareness/Operations
- Enhanced Beautification Program
- Enhanced Keep the Beach Clean
- Beach Safety Campaign
1.25% – Capital Projects to enhance Sports and Special Event Marketing
- Development of amphitheater and special event ground at Aaron Bessant Park
- Expansion of softball/baseball fields at Frank Brown Park
- Development of Sports Village Complex
- Assist in funding on-going maintenance of new athletic fieldd
1.0% – TDC Beach Nourishment
2.0% – CVB Destination Marketing

Click here for a copy of Dan Rowe’s presentation

Can we start buying again yet?

“The answer is a qualified yes,” stated a November issue of Fortune Magazine in an Investing column titled Time to Jump In?

The author then goes on to explain that now is a great time to get into, or get back in, the stock market. “Stocks aren’t exactly cheap, but for the first time in years investors can expect annual gains that should eventually approach double digits.”

Well, cheap is always a relative term. Stocks ARE cheap right now compared to where they were 12 months ago. With the 12 month high at just under 14,000, the DOW has dropped 41% since this time last year. I just bought a new pair of Sperry’s this weekend at a 40% off sale. I saved 35 bucks! That’s dinner and a matinee.

This is not to say that in the next 6 to 12 to 18 months that those purchasing stocks now will not lose money, because there is actually a good likelyhood that they will. However, the longer the term, the smaller the risk. The advantage to buying now is the tremendous long term gain potential. The disadvantage to NOT buying now is the risk of missing the bottom and losing an opportunity at potential long term gain. We may be in a recession, but historically, the market comes flying out of downturns. A study performed this year by Ned Davis Research found after studying 10 recessions after WWII, the average market return one year after the market low point was around 32%.

If the last 10 years have been on average bad, does that mean that the next 10 years will be bad also? Most likely no. In fact, odds are overwhelmingly good they will yield much better than average returns.

The interesting observation to be made right now is that the quite opportune time to purchase stocks now is actually parallel with the real estate market. Now is the time to be buying real estate. Like stocks, real estate is likely to continue to fall, but the bottom is near. Real estate, historically, has always been a good long term hold. Ownership is not without heartburn, but if you can’t stomach seeing your property values come down a little over the course of 10 years, maybe investing in real estate isn’t for you.

In many cases, prices have come down to 2003 levels. The average sold price on Panama City Beach during the third quarter 2008 was 10% less than what it was during the same period in 2006. On an individual basis, some prices have come down as much as 20 to 40%. Right now there are deals everywhere with motivated sellers willing to do just about anything to sell their property. In many cases, velocity sales has actually increased from last year, indicating the entrance of buyers into the market.

The best way to acheive healty returns in any investment is buying low. You know the saying – you make money when you buy, not when you sell. Now is the time to be making money.

The Fall is Over, so how did the White Sale go?

I suppose it has been quite some time since I’ve shared a highly opinionated piece on how we market our area. Maybe too much criticism, or maybe I’ve been really busy, but nevertheless here we go.

Right to the point.

The Extended White Sale, as it has been dubbed was an extension of the “Wildly Successful” Summer White Sale. It was decided that the Summer White Sale had gone so amazingly well, that it was prudent to extend the promotions into the fall, so people could download coupons to Shipwreck Island Waterpark that actually closed first week in September. Please note the sarcasm.

The numbers.

It total, the entire campaign saw 95,780 visits on http://www.pcbwhitesale.com (now forwarded to visitpanamacitybeach.com) and 23,890 total coupon downloads. The entire cost rang in at a whopping $575,000. That’s right, the comma IS in the right place. Looking at previously reported numbers, that would leave 15,718 visits and 3,945 coupon downloads for the Extended White Sale. The extension cost $80,000.

I would really love to see a breakdown of what cost what – I’m wondering how the bill got up to almost $600k.

So, with the total coupon downloads being at 23,890 and a total cost of $575,000, the TDC paid $24 per coupon download. The TDC paid 24 dollars per coupon downloaded.

I have an interesting question: How far would the businesses get if THEY were given $24 for every coupon of theirs downloaded? Just curious how you think they would have fared had they been given that money, instead of a creative agency. They could do with it whatever they please – keep it on the books, use it for advertising, use it to subsidize lower rates for everyone that comes in their doors, whatever.

I mean, what if Shipwreck Island was to use that money to subsidize entrance fees giving the first random/unannounced number of people each day Monday – Wednesday (or whatever notoriously slow part of the week during the summer) 50% off all summer long. Imagine the lines of people that would be at the front gates in the morning and all the people that would stay and pay full price because they were already there with the kids.

What if Captain Jacks used their share to have Buy One Get One Free Tuesday Nights all summer long. How many more people would eat there when they were in town.

The ideas are only limited by your creativity (I have little, I know).

Look, I think we all learned a hard lesson this year. With that huge sucking noise we hear coming out of Washington as the economy falls more and more into a recession is effecting all of us – we are all scurrying to keep money in our pockets to pay the bills.

I believe rash decisions were made that turned out to be bad decisions, and hopefully next season, we will have a greater understanding as to how we need to move forward with all marketing campaigns.

We Say Merry Christmas, Tree Lighting

The Christmas Spirit filled the air with smells of pine and cookies arousing our senses. Hundreds of people came to watch as their children and their neighbor’s children sang carols on platform risers with smiles on their faces and sugar rushing through their veins.

Churches and schools from all over Panama City Beach served sweets of all kinds on decorated tables. The choice of beverage was consitently a clear soda mixed with a sherbert and fruit concentrate. A few had cake, but most had cookies.

Young boys and girls walked around with overflowing plates of treats, surely spoiling their dinner, but nobody cared, it’s Christmas. I had my fair share of sweets, and definately spoiled my dinner.

This time of year always seems to bring such joy. Smiles were everywhere and so were friends.

Santa arrived in his lighted chariot with a huge motorized ladder attached to the top, ideal for boarding his sleigh should Rudolf be reluctant to drop below an altitude of 100 feet. As he walked in, kids of all ages gleamed with dreams of presents under the tree.

The tree was lit with much fanfair and excitement. As the lights came to life, the eyes of lookers-on sparkeled. Christmas is officially here, the tree at Frank Brown Park had been lit.

Merry Christmas everyone.

Interdisciplinary thinkers needed

It is amazing how the world changes in a few years. In the 80s and 90s, corporations wanted skilled people to handle programming, maintenance, marketing and manufacturing operations. Now companies want something different.

Modern companies need broad, international thinkers who are comfortable moving between cultures and disciplines. In today’s work environment, it is not uncommon for modern employees to work with programmers in India, manufacturing personnel in China and marketing people in Chicago, all in the course of one day. Unlike a decade ago, it makes no sense to spend a year learning the latest computer software because it is obsolete within a few short weeks.

The speed of change is so fast, it is mind numbing.

Now the question is, can our educational system change to meet the demands of the new paradigm. According to Catherine Gewertz, in her Education Week article, Assessing ’21st-Century Skills’ Won’t Be Easy:

“Business and higher education leaders are pleading with schools to teach ’21st-century skills,’ such as interdisciplinary thinking, that students need to flourish in an increasingly global, technology-rich society.”

However, parents and educational institutions seem to be dragging their feet, fixated on what worked in the early 90s.

At this point, kids need more than computer classes in kindergarten and special schools that focus on math and art. To be good interdisciplinary thinkers, they need an understanding of all subjects well, really well. As starters, everyone needs to know and understand Algebra and geometry, the periodic table and conservation of energy, the US Bill of Rights, and design and color. We need young people who are as comfortable with differential equations as they are with discussions of the Tang Dynasty.

What we did in the 90s isn’t enough. We need to change our perspective and expect our kids to learn more. If we do, companies will rush to hire US graduates. If we don’t, our kids will face tougher job prospects when they enter the workforce.

Juliann Talkington is the administrator of the Panama City Renaissance School. Reach her on 850-215-8712 or jtalkington@pcrschool.org.

Photos from You – Beach Clouds, Hermit Crabs, and Pier Park

Every week we’ll feature photos from you, the reader, of anything from crowded streets at Pier Park, to finger crabs scurrying across the beach. They say pictures are worth a thousand words, share your words with pcbdaily.com. Submit your photos and share your Panama City Beach pictures.

Submitted by Kerry Hulber

Clouds on the Beach

Submitted by Cora Busch

Pier Park for the Holidays

Kids and the Gulls

The Train in Pier Park

Ellen Kilough from the Visual Arts Center of Panama City

Don’t touch my Heine

Submitted by Lori Duncan

Deliciously Clear

Submitted by Jason Koertge

Clusters of Hermits

Herds of Hermits Crabs at Alligator Point, Panama City Beach

Weary of the Hand

Moonlight and Clouds

Huckabee – Romney's a Big Fat Spender

As droves of people waiting in weaving lines around the interior of Borders Books and Music in Pier Park, Mike Huckabee slowly made his way through “torrential” rain in his tour bus on Highway 98. Adorned with a huge image of himself, Huck’s bus sported his colors of blue and yellow. Team Huck is promoting his new book, Do the Right Thing.

I haven’t actually read the book, but a review I read described that it was more of what not to do, specifically using Mitt Romney’s expensive campaign to non-nomination.

All that perceived profligacy and ineptitude appears to delight Huckabee to no end and few pages in the book pass without a mention of ‘ol Mitt’s mistakes. In fact, Romney appears more in “Do the Right Thing” than any person except Huckabee himself, according to the book’s own index, and about 99.9 percent of Romney’s appearances ain’t pretty, of course. – Jason George

Many came with their already-owned books, many others purchased the book that night. Some were supporters, others still were just there to see a previous (and possible future) presidential candidate.

The buzz was great and the energy high with representatives from all the major local news stations.

Mike was accompanied by two others wearing Team Huck colared shirts that resembled the uniform of a race team.

The book is out, I probably won’t read it, but you can. Do the Right Thing is available at Borders Books and Music.

Enjoy the pictures of the event!

Revenue Enhancement Committee Meeting

Download the agenda here.

AGENDA

REVENUE ENHANCEMENT COMMITTEE MEETING
Bay County Tourist Development Council
Panama City Beach
Wednesday, December 3, 2008 1:00 p.m. Board Room, Visitor
Information Center

I. CALL MEETING TO ORDER

II. ROLL CALL

III. REQUESTS TO ADDRESS THE COMMITTEE ON AGENDA ITEMS (3 Minutes)

IV. UPDATE ON DEVELOPMENT COSTS FROM STRATEGIC PLAN, Mr. Dan Rowe, President

V. UPDATE ON DESTINATION MARKETING, Mr. Peter Yesawich, YPartnership

VI. AUDIENCE PARTICIPATION

VII. ADJOURNMENT

TDC Bed Tax Committee Meeting Agenda for Wednesday

I know, I know, they changed the name to Revenue Enhancement Committee.

Wednesday December 3, 2008, the Revenue Enhancement Committee will meet to further discuss development costs from the strategic plan and get an update on destination marketing from Peter Yesawich from Y partnership.

If you remember from the last Revenue Enhancement Committee, 4 major points were discussed, TDC Marketing and Awareness, Special Events Marketing, Sports Marketing, and Destination Marketing. The estimated costs tagged with everything proposed totaled more than $52 million.

This meeting, I believe we should see a greater explanation into these costs and some greater detail as to what is feasible and what is not.