Tourism Promotion Areas - Panel

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Transcript Tourism Promotion Areas - Panel

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?
• Why is it effective?
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
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
• 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
• No statutory limit on fees and tourism businesses other
than hotels could be included
The Thurston County Experience
George Sharp, Executive Director
Visitor and Convention Bureau
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
• 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
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
• 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
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
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
Seattle Southside –
Innovative Structure
Katherine Kertzman, Executive Director
Southside Seattle Regional Tourism Authority
Current SSVS Revenue & Service Structure
Proposed Revenue & Service Structure
Proposed Revenue & Service Structure
Proposed Revenue & Service Structure
Becky Bogard, [email protected]
George Sharp, [email protected]
Katherine Kertzman, [email protected]
Diane Schostak, [email protected]