TDC Revenue Enhancement Committee Meeting

The TDC/CVB pulled together an impressive report on Bed Tax collections in competing destinations.

Numbers are clear:  Tourists visiting Panama City Beach pay less bed tax than in most other vacation destinations in Florida and the Southeast.  The full report will be posted here as soon as possible; email lancaster.kirk@gmail.com if you want me to email it to you..

There is no doubt we could improve TDC revenues by adding 2 cents, and the only people who would notice are the Bed Tax Collectors themselves.  (Sorry BTCs, I love you and am on your side, wishing you didn’t have to collect it all by yourselves, but that’s a bigger fight I’d join you on…)

There were other discussions of increasing TDC/CVB revenue, such as marketing co-ops and adding a new employee to collect back-taxes from the owners who are not paying up, but the 1 to 2 cent bed tax increase is by far the real revenue stream.  And it’s the topic that supposedly was the crack that caused the previous TDC Board breakup.  So it’s a hotty alright.

Since this is such a debated topic, please join in the comments and give your 2 cents on increased Bed Taxes (Revenue) for Bay County.  PCBDaily.com gives us all a voice on these issues, and you wouldn’t believe how many local business people and residents read this website and subscribe to the weekly newsletter.  So whether you’re on the TDC Board, a Bed Tax Collector, a concerned tourist, or a reporter for the major media outlets in town… if you have a solution or opinion on our Bed Tax and Tourist Development Revenue, let your voices be heard!

Here’s my 2 cent offering to the Revenue Enhancement Committee.

1. Raise the tax 2 cents, build sports and special events facilities only

2. The TDC serves Bay County.  Bay County serves tourists and thrives on tourism.  All hotels and motels in Bay County should be required to collect the Bay County Bed Tax.  I pay bed tax in Tuscaloosa, AL, and they’re no where near a beach.

3. Increase percentage of Bed Tax spent on product, and less on promotion.  All our competitors in the report spend more on beach/product improvement than on advertising and promotions.  We should follow that lead.  They have a better product as a result.

Gorgeous Outside, Heavy Brainstorms Inside

Tuesday, September 23: TDC Marketing Committee Meeting

Highlights of ideas from the new marketing committee.

Russ Smith of the Towne of Seahaven  brought up the success of filling beds through wholesalers (Expedia, Travelocity, Bay County’s very own BookIt, etc.)

Probably the single easiest and most effective tactic the TDC/CVB could execute would be to buy ad space on the major wholesaler sites, driving travelers to the independent properties who sell rooms via these websites.

How Wholesalers Work (in a nutshell)

  • Properties provide inventory to the wholesaler.  At a wholesale price, of course.
  • The Wholesalers already have working websites that would enable a hotel or condo to sell rooms, then and there, online, 24/7.
  • They have HUGE amounts of travelers booking through their sites daily.. or at least shopping rates.
  • They spend HUGE amounts of advertising dollars to drive visitors to their sites


How Should the TDC Participate?

  • Bring all the wholesalers to our beach for workshops that show our Bed Tax Collectors how to get involved and sell rooms online.  Smith indicated that his reps at Expedia told him they were very willing to help us sell all this new inventory.
  • Buy advertising within the wholesaler sites, introducing travelers to Panama City Beach as they make vacation or business travel plans.

Concern about Wholesaling

  • The hospitality world must move online, and the tourist markets LOVE this wholesaling concept.
  • Property owners like retail concepts. We can’t wholesale the whole beach, year round.  Improving price and value, by ensuring the product is as clean, safe and rewarding as possible, will also increase wholesale value.

——

Lee Ann Leonard of By The Sea Resorts  brought up an idea for the Family Spring Break campaign: kids storming the beach, as in “reclaiming” the beach after the college students are gone.  That’s a brilliant message, it addresses the reality of the anti-spring break identity and moves ahead in a positive direction.  Proof that we don’t need better brains from out of town making up our creative messaging.

——

Annie Holcombe of Oaseas has the unique opportunity to sell in both Bay and Walton counties.  She said when selling group accommodations to Atlanta, they won’t even talk to you if you say ‘Panama City Beach.’  Say ‘Destin’, and they’ll listen.  This is such a very important opportunity that no one wants to focus on.

We must change that perception because we have many new facilities at a much greater value than South Walton and Okaloosa.  Whenever I mention those in Atlanta who hate us, I must remind you of the hundreds of thousands who don’t even know us. Proper research would prove me right or wrong, but I would venture to say that between 1-2 Million Metro Atlanta residents do not know who we are, what we have to offer nor that we’re only a short 5 hour drive down the road.

——

Bryan Durta… all the PCBDaily readers know who he is… brought up a couple things.  He quickly noted that an online “win a vacation” contest wouldn’t be very newsworthy with just one winner, so he suggested a juicier option, such as a giving away a free month every day to multiple winners.  That got the committee excited.  Something like “900 Nights Free at the Beach” was one of the  rough concepts.  It would be smart to give people a taste of what we really have to offer down here… but will the condo and hotel owners give up that many rooms?

Bryan questioned the drive-to market spending and suggested ideas relating to new markets.  This is a common argument on the beach.  I’m a drive-to market believer.  Regarding outer “emerging” markets, I’m convinced that if Mom and Dad are going to pack up the car to drive 12 hours to Florida, they’re going to take the extra few hours to go see Mickey.  Just a hunch, but I bet most outer-market families cannot afford to fly to PCB at this time. Or if they do have that kind of vacation budget, they’re not going to choose us.

None of us will know who is right or wrong on this issue until proper research is conducted.

——

I called Amy Harris of Royal American Hospitality and asked her thoughts on the marketing plan; she discussed the idea of targeting University Alumni to reach DINKs (double income, no kids) and KISs (Kids in Strollers) for the shoulder seasons.  That’s a smart idea, especially if Y Partnership is still figuring out where to post online ads.

So, rest assured that the new marketing committee has a lot of brain power, even though I am no longer on it. :c)

Why Ask Y?

It was “deja vu all over again” as the new TDC Marketing Committee reviewed the CVB / Y Partnership 2009 marketing plan.  Some faces were new, but many of the questions remained the same:

“Should we really target that $75K demo?”
“Are we missing opportunities in the Midwest, Northeast and other emerging markets?”
“Are you sure it’s best to spend most of our budget in the drive-to markets during the summer?”

We have had the same advertising / marketing agency for over 5 years.  These questions should be answered by now – posted up on a wall in big, colorful graphs and maps.  It was requested of the agency more than once by the former marketing committee to start delivering — at the very least — Google Analytics.  This simple (and free!) data would give the TDC Board information about new target markets.  For instance, Google Analytics will tell you — down to the city — from where your site visitors came.

So why ask Y these questions?  You might as well not, because they have proven that they “just don’t know.”  (“I just don’t know” was an exact quote from the account exec when discussing a proper message and target market for the summer campaign.)

I’m as sick of bashing the work of these nice folks as you are of hearing it, but this is business.  We deserve better results for the investment.  And if any single one of you TDC Board members, committee members, Y Partnership agents, business owners or Bay County residents wants to discuss with me all the other ways this agency has disappointed from a client’s perspective, please feel free to take me to lunch for clear explanations.  Yes, that means you’d buy lunch… but satisfaction is guaranteed.

We need a TDC Beat Reporter

Bryan Durta, PLEASE reconsider posting your thorough notes and the TDC/CVB collaterals, leaving your opinions and ideas for the committee work.  As you can see, a commentator is all I be!

Any other detail-oriented, organized fact-takers, please contact Jason@PCBDaily.com.

Also,

9/8/08 TDC/CVB: Strategic Plan Adopted & More!

8 of the 9 board members were in attendance. Rick Russell was absent.

Bed Tax Collections: Ms. Charlene Honnen, Tourist Development Tax Specialist, reported that while YTD collections were up 1.8%, the July collections were down from the prior year. She also reported that there are currently 1522 collectors representing approximately 12,000 units registered with her office.

PCB Seafood, Wine & Music Festival: Mr. Jack Bishop made an extensive presentation on his organization’s planning for the October festival. The CVB is the festival’s primary sponsor and is contributing $50,000.00 in financial support. He gave a walk-through of the festival’s web site, explained all of the marketing efforts, and also explained the festivals “green” efforts. He also explained that his organization will be collecting demographic date from all ticket purchasers and expects to provide extensive date to the CVB. Bishop also reported that his organization was already considering hosting a spring festival for 2009 during the shoulder season between Easter and Memorial Day. Finally, he expressed his belief that the community should continue to make improvements to the grounds at Frank Brown Park to assist with future festivals. He discussed the electrical improvements made by the circus and explained how they were more specifically geared to the needs of the circus than he would have desired. He reported that his organization hopes to make permanent facility upgrades with each festival that will be helpful to future users.

Fall Promotion Update: Ms. Susan Estler, the CVB’s VP of Marketing, explained the extension of the Summer White Sale through October. Although online marketing designed to draw visitors to the CVB’s site continues, the primary print and radio advertising has been completed. The partner offers have been recently updated and now include 52 partners. Since the program began, there have been 85,000 website sessions and 23,000 coupon downloads.

Strategic Plan: President Dan Rowe thoroughly discussed the final Strategic Plan that is the result of two public sessions and input from the board and community. The final key initiatives are: 1. Enhance the visitor experience at Panama City Beach; 2. Develop Panama City Beach into a year-round destination; 3. Effectively market Panama City Beach to build occupancy; 4. Diligently protect Panama City Beach’s primary natural resource – the beach. “Potential strategies for funding the initiatives” has been added as a separate section. At the President’s request, the board unanimously voted to adopt the plan.

Download the entire 2008 Strategic Plan.

Marketing Committee Update: Committee Chairman Buddy Wilkes advised the board that he had made the decision to make some changes to the committee membership to add some new voices. Phillip Griffitts, Jr. (Sugar Sands Resort/La Quinta) and Russ Smith(Towne of Seahaven/Sharky’s/Hammerhead Fred’s) will retain their seats. New appointees are: Felicia Cook(Marketing Director for Pier Park), Amy Harris(Royal American Hospitality), Annie Holcomb(Oaseas Management), Lee Ann Leonard (By the Sea Resorts), and myself, Bryan Durta. The board voted unanimously in support of the new committee. I would like to thank Mr. Wilkes for including me on the committee as an involved citizen. The committee will continue to meet on an as needed basis as the board requests. The first meeting has been scheduled for September 23rd.

Off Shore Drilling: President Rowe discussed the possibility of the board reconsidering previous positions opposing drilling off the shore of Florida. Rowe explained that a meeting of Florida CVB’s is being held next month to discuss the issue and he suggested the board delay any action until he can report back.

Beach Damage from Hurricane Gustav: President Rowe reported that it is still unknown whether there has been any damage to the beach resulting from Gustav. While the profile is currently deflated(flatter), Ms. Lisa Ambruster has advised that the height will likely build back. There is a possibility of seeking emergency repair funds from governmental agencies if the board desires. This will likely require a survey costing approximately $100,000.00 and Rowe suggested that the board wait for a recommendation from its beach contractors before making a decision.

Interactive Agency Search: President Rowe reported that the application deadline has passed and 6 proposals have been received. The sub-committee will bring its recommendation to the board after a complete analysis.

Delta In-flight Magazine Article: Although it was not an agenda item, Board Member Yonnie Patronis brought up an issue concerning a 10 page article on the Emerald Coast that appears in the current magazine. Mr. Patronis reported that the article included information on Coastal Vision 3000 and most of the panhandle, while totally ignoring Panama City Beach.

My Last Meeting Report: Due to my appointment to the CVB’s Marketing Committee announced today, my personal standards require that I discontinue preparing the TDC/CVB meeting reports for PCBDaily. I would like to thank Jason for providing the opportunity to write them over the past year, and know that Jason and Kirk are ready to take up the slack. I will, of course, still be here contributing to the site where appropriate. I have enjoyed preparing the reports and hope that everyone has found them to be informative and fair. I welcome comments and suggestions from anyone interested in our destination, regardless of whether you are a resident or a visitor. Thank you.

-Bryan Durta

9/2/08 TDC/CVB: Budget Approved Without Any Changes

8 of the 9 board members were present for the special meeting that was called last Friday. Absent was Mike Nelson. Public attendance was probably the smallest it has been in the last year. It’s anyone’s guess whether this was due to the unusual scheduling of the meeting, a lack of public interest, or the public just agreeing with the priorities of the TDC/CVB as set out in the budget.

The board unanimously approved the FY 2009 budget which begins on October 1st. The budgets were accepted as proposed by staff and no motions were made suggesting any changes. Final approval will now be up to the Bay County Commission which is scheduled to take up the matter on Setember 16th.

Continue reading “9/2/08 TDC/CVB: Budget Approved Without Any Changes”

TDC ditches their brains, gets bested by competition

Perhaps this post isn’t necesary, but I feel it prudent to underscore Bryan’s comments and insight into the current actions of the TDC.

An interesting point is brought up, and that point is: why are we just now discussing the budget?

We had all summer with little or almost no activity regarding public TDC meetings.  It seems that there was ample time to discuss these issues and more.  Is there a reason the TDC meetings come virtually to a halt during the summer months?  This is the time we need to be discussing everything and making changes on the fly as needed.

Continue reading “TDC ditches their brains, gets bested by competition”

Comments on the TDC/CVB FY 2009 Budget

As Jason posted, a special meeting of the TDC/CVB board has been called for Tuesday, September 2nd at 9:00 AM. Based on the Agenda and an August 29th letter from President Dan Rowe to the Board, I believe the board will actually vote on the FY 2009 budget on Tuesday rather than just discuss it. It is so amazing that the “New” TDC now appears to be engaging in a budget process that has been basically closed to public knowledge or input. During Tuesday’s meeting, I hope that the board explains the following:

1. Why is the board scheduled to “Consider for Approval” the FY 2009 budget at the same meeting when it is being publicly discussed for the first time? While I understand that the budget needs to be presented to the County Commission for approval by the end of September, I have no idea why the CVB has waited till the last minute to schedule the first and apparently last public meetings on the subject?

2. Why has the special meeting been scheduled on the first business day after the holiday weekend? And why was it announced just one business day before taking place?

Check after the break for more shenanigans!

Continue reading “Comments on the TDC/CVB FY 2009 Budget”

8/12/08 TDC-CVB: Sports Marketing, Upcoming Budget, Beach Safety

6 of the 9 board members were present. Absent were Marty McDaniel, Yonnie Patronis, and Rick Russell.

Sports Marketing Update

Mr. Richard Sanders, Director of Sports Marketing, provided a report on the state of sport related tourism for our destination. After his update, he introduced Mr. Don Schumacher, Don Schumacher & Associates, Inc. His organization prepared the Sports Facilities Study and Recommendations previously requested by the board. The total cost of the report was $32,000.

Continue reading “8/12/08 TDC-CVB: Sports Marketing, Upcoming Budget, Beach Safety”

TDC/CVB Approves $60,000 October Festival Funding

The CVB Board voted 5-0 on 7/1/08 to approve a request for $60,000.00 in funding for the Panama City Beach Seafood, Wine and Music Festival to be held October 10-12, 2008 (Columbus Day Weekend) at Frank Brown Park. Absent were Mayor Oberst, Yonnie Patronis, Rick Russell, and Buddy Wilkes. Mike Nelson voted via telephone. The festival will be promoted by a group including Jack Bishop, C.J. Ryan, and Steve Pizza. All board members involved in the discussion seemed very supportive of the festival and funding request.

Although the festival schedule is still tentative, the promoters currently anticipate the following festival elements:

Continue reading “TDC/CVB Approves $60,000 October Festival Funding”

6/10/08 TDC/CVB Meeting: Turtle Ordinance, Grand Lagoon National Tournament

Surprisingly, 8 of the 9 board members were present. Absent was Yonnie Patronis. Board member attendance at the 8 meetings, including the 2 strategic planning sessions, held during the first half of 2008 has been quite poor. 3 members have attendance records of 50% or less and only 3 members have missed no more than one meeting. The worst was at the strategic planning session held two weeks ago when only 2 board members were in attendance. I understand that board members are not compensated, but people should not agree to serve unless their schedule allows regular attendance. Hopefully the City Council and County Commission will consider ability to attend meetings when considering future appointments.

Turtle Protection Ordinance

Based on recent reports in the News Herald, I understood prior to the meeting that a compromise had been reached between Staff, the U.S. Fish & Wildlife Service and the local property owners for a new draft ordinance to replace the one approved by the board in December. As expected, the prior draft ordinance was rejected by USF&W and effectively put any future beach nourishment on hold. Both the USF&W and the U.S. Army Corps of Engineers were in attendance at this meeting to complete the process. Based on the News Herald reports, I expected the new draft ordinance to be approved by the board ending the standoff between PCB and the Federal Government. I sure was wrong.

Continue reading “6/10/08 TDC/CVB Meeting: Turtle Ordinance, Grand Lagoon National Tournament”