HomeMy WebLinkAbout2008-08-26; Carlsbad Tourism Business Improvement District; 08-08-34; Report From Reint Reinders & Associates Phase IICARLSBAD TOURISM
BUSINESS IMPROVEMENT DISTRICT
AGENDA BILL
AB#
MTG.
DEPT.
08-08-34
8-26-08
Admin
Services
Report from Reint Reinders &
Associates and consideration of Phase
II of Marketing Project
CTBID STAFF (j^
GENERAL x*£)
COUNSEL M?!^
RECOMMENDED ACTION:
1. Receive report from Reint Reinders & Associates on Phase I and discuss recommendations
2. Consider Phase II proposal from Reint Reinders & Associates and, if the Board chooses,
adopt Resolution No. 2008-6, authorizing the Chairperson of the Carlsbad Tourism
Business Improvement District to enter into an agreement for professional services with
Reint Reinders & Associates
ITEM EXPLANATION:
During the past two years, the Carlsbad Tourism Business Improvement District (CTBID) Board
of Directors has been focusing on the development of a marketing program that would support
the wide range of hotel properties within the City of Carlsbad. Since the creation of the CTBID,
the Board has worked with both the Wright Group and Destination Analysts, and has heard
presentations from the Carlsbad Convention and Visitors Bureau (CCVB), and the San Diego
North Convention and Visitors Bureau (SDNCVB) regarding services these agencies provide in
support of tourism in the area.
Most recently, the CTBID Board contracted with Reint Reinders & Associates (RR&A) to develop
marketing strategies and programs that will strengthen the tourism activities within Carlsbad
This study was conducted during the months of April 2008 through July 2008. Attached at Exhibit
1 is an outline of the work performed and resulting recommendations.
Included in the recommendations is a recommendation that the Board contract with RR&A for
phase II of the study. Phase II would implement the recommendations of phase I over the next
10 months at a total cost of $100,000. A detailed description of phase II work is provided at
Exhibit 2.
The CTBID Board should receive the report from RR&A on the results of Phase I and discuss the
recommendations. Following the discussion, if the Board would like to proceed with hiring RR&A
for Phase II, they should direct the General Counsel to draft the necessary documents and
agreements for the signature of the Board Chairperson.
FISCAL IMPACT:
The proposal submitted by Reint Reinders & Associates for phase II is expected to take an
additional 10 months, and has a total price of $100,000 ($10,000 per month).
The CTBID's 2008-09 Budget has a $250,000 contingency fund and a $390,000 available fund
balance for a total of $640,000 in available funds.
ENVIRONMENTAL IMPACT:
This action does not approve any projects that will have a physical adverse affect on the
environment so it falls within the general rule under CEQA that this is not a project (CEQA
Regulation 15738).
EXHIBITS:
1. RR&A Phase I report
2. Detailed description of Phase II work to be performed by RR&A dated August 8, 2008.
3. Resolution No. 2008-6, Authorizing the Chairperson of the Carlsbad Tourism Business
Improvement District to enter into an agreement for professional services with Reint
Reinders & Associates.
DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2409, cgerh@ci.carlsbad.ca.us
FOR CITY CLERKS USE ONLY.
BOARD ACTION: APPROVED D CONTINUED TO DATE SPECIFIC D
DENIED D CONTINUED TO DATE UNKNOWN D
CONTINUED D RETURNED TO STAFF D
WITHDRAWN D OTHER-SEE MINUTES D
AMENDED D
EXHIBIT 1
Xeintfieinalers, CfiA
fietnt Jteinders & Associates
12380 Jiue Cheaumont
San Diego, CA 92131
P&one: 760-994-9266
. com
www. reintreinders. com
Tuesday, August 12, 2008
Executive Summary
After four months (April 1 through July 31, 2008) of comprehensive research and analysis that included:
o 116 confidential interviews and meetings with Carlsbad tourism stakeholders from hotels, resorts,
inns, attractions, retail, dining, transportation, government, authors of previous consultant studies,
and other state and regional destination marketing officials and
o Careful review of all Carlsbad tourism marketing-related performance metrics, contracts, reports,
commissioned studies, surveys, and BID proposal and interpretation documents;
o Attending six (6) Carlsbad community cultural and public meeting and events plus
o Analysis, further research and development of findings, opinions and recommendations
Reint Reinders & Associates (RR&A) has reached the following conclusions: with more than $14
million (and growing) contributed to the City's general fund last year via the local hotel industry's bed tax
and with the City faced with plummeting home values resulting in potential future budget shortfalls,
tourism is becoming more and more vital to the Carlsbad economy and way of life.
If Carlsbad does not take swift and strong action - - becoming a legitimate player in the highly
competitive tourism marketing game, upgrading Carlsbad's CVB (CCVB) into a 21st century tourism
sales and marketing agency, properly funded and managed - - Carlsbad risks losing greater share of
market to less attractive and less deserving Southern California coastal tourism destinations.
Maintaining the status quo option? Risks: further divisiveness with largest resorts and attractions
marketing unilaterally with very little or no marketing the Carlsbad destination. $440,000 to Carlsbad's
CVB and an additional $1 10,000 to San Diego No. CVB (SDNCVB) will produce the same mixed
results, even lower stakeholder expectations and more lost opportunities for establishing Carlsbad as a
powerful brand.
As for having to make the "case" for tourism in/for Carlsbad, it's a moot point: Carlsbad is a tourism
destination. It became one the day that Legoland opened its doors in 1999. Case closed.
Currently Carlsbad has a very wide range and assortment of attractions to offer tourists of every age,
gender, pocketbook, ethnicity and nationality, e.g., weather, beaches, a world class amusement park,
trophy resorts, more affordable hotels, time shares and vacation rentals, a quaint, historic shopping, dining
and entertainment village and some other very unique local attractions.
More positives: Carlsbad as a tourist destination has a backyard/neighborhood audience from which to
draw 21 million Southern California residents, according to Jack Kyser, Los Angeles Economic
Development Corporation. Furthermore, 85 percent of all "California tourists" are residents of California,
according to Bruce Baltin, PKF Consulting.
1
EXHIBIT 1
Given all of these obvious features and competitive advantages, Carlsbad should be capturing a much
greater share of the tourism pie.
RR&A's reasons for why Carlsbad is not capturing greater market share:
1. CTBID Board's inability to make necessary decisions and take decisive action
2. Accountability (CTBID Board & tourism promotion contractors)
3. Absence of clear direction (to tourism promotion contractors)
4. Insufficient funding
5. Lack of commitment and real support by and from the City of Carlsbad
RR&A recommendations (to be adopted and implemented 2009-2014):
1. New CTBID funding increased from $1 per room night to 2% of member hotel room revenues
(use of the 1994 BID as a business model - - a five year commitment)
2. New, reconstituted DMO (destination marketing organization) to replace the current CCVB
a. New, strong sales & marketing leadership
b. New powerful, interactional website featuring strong SEO, content and linkages
c. New sales associate to focus on B-to-B marketing opportunities and events as opposed to
the standard B-to-C (more complete explanation provided at 8/26/08 presentation)
d. A new advisory board representative of the top sales and marketing minds among
Carlsbad's tourism stakeholders; provides advice, counsel, resources and potential joint
marketing and partnering opportunities for the new DMO
e. New powerful alliances and partnering (#1 S.D. ConVis & #2 SDNCVB)
3. Develop an RFP and solicit representative consulting firms to conduct a comprehensive Carlsbad
Tourism Economic Impact study in order to produce a 2008 baseline; importance for all Carlsbad
tourism stakeholders, in particular the City government, to "know the dollars" (that come from
tourism locally); RR&A to present the consulting firm selection to the CTBID for approval and
funding
4. A DMO, new Advisory Board, CTBID Board and City government adopted and supported
campaign to unite all of Carlsbad's tourism stakeholders in support of a powerful, new Carlsbad
tourism brand (through new communication, stakeholder meetings, "town hall" gatherings)
5. A new DMO/CTBID Board sponsored training program for all Carlsbad hotels designed to help
hotel stakeholders capture more room nights and revenue and drive occupancy back up to annual
70 percent plus standards
EXHIBIT 1
6. A new tourism initiative as part of the City of Carlsbad's Master Plan review in 2009
7. For the purposes of continuity and accountability, ownership of work scope, retaining RR&A for
a Phase II engagement (9/1/08 to 6/30/09) to manage, facilitate and implement a successful
transition from the current CCVB to the new reconstituted DMO that would include the
recruitment of a new DMO executive director and the establishment of new metrics
RR&A's Charge
1. Assessment of the CTBID initiative to date
a. Review of the CTBID Board's responsibilities, decisions, performance to date
b. Review of CCVB's charge, funding, activities, overall performance to date
c. Review of SDNCVB's charge, funding, activities, overall performance to date
2. Deliver actionable recommendations on how tourism sales & marketing and visitor services
should be conducted - - and what that will look like - - going forward
a. Recommendations that will help "guide" the CTBID Board with sound visitor destination
marketing initiatives
b. Key deliverable: provide opinion and recommendations on how best to drive visitor
demand so as to increase travel and annual occupancies to a stabilized minimum 70%
3. Manage a Phase II project to oversee, direct and supervise full implementation on all
recommendations and initiatives approved and adopted by the CTBID Board
Stakeholder Interviews/Feedback
While the 116 stakeholder interviews produced a wide range of opinions on contractor value and
overall performance to date and how Carlsbad tourism marketing should go forward, here is
RR&A's interpretation of the consensus reached:
o A passionate, strong-willed minority of stakeholders - representing primarily the
Carlsbad Village, the beach hotel and community and some members of City government
- - want to maintain the current CCVB and its leadership with greater support by the
entire community but with increased funding
o The other stakeholders - - those located away from the Village and the beaches - - are just
as passionate and strong-willed about the need for major change in how Carlsbad is
marketed as a destination; new DMO, new leadership, more funding, more
accountability, greater expectations, a serious, committed campaign to build a strong
Carlsbad brand and creation of a new "place" with more activities, art and culture
o All stakeholders seem to be in universal agreement over disappointment of how the
CTBID rolled out - - lots of frustration with the City's failure to provide matching funds
EXHIBIT 1
Assessment of CTBID Board
RR&A will address on August 26th RR&A's assessment on the makeup and functioning of the
CTBID Board including decisions made or deferred on providing direction to and demanding
greater accountability of the two contracted agencies along with recommendations for how the
CTBID Board should be selected, are there areas where representation is missing, plus the role of
City government with the CTBID Board going forward.
Assessment of CCVB & SDNCVB
A lot of hard effort has been put forth by both contractors in providing various services in
promoting tourism for Carlsbad. Accomplishments have been noted despite a woeful lack of
funding, clear direction, and friction between the two contracted organizations, and a divided
Carlsbad stakeholder community. For more insight into RR&A's contractor assessment, revisit
comments and recommendations on pages 1 and 2, from RR&A's "final conclusions reached,"
"reasons why Carlsbad is not capturing greater market share" and "recommendations". While
there could be a contracted role (possibly marketing, advertising and P.R.) in the future for
SDNCVB - - on top of the already stated recommendation for forming a stronger alliance - - a
new reconstituted Carlsbad DMO would replace the current CCVB altogether with new
leadership, new funding and new performance metrics. RR&A will provide more assessment
details and answer questions during the CTBID Board closed meeting on the 26th.
Assessment of Previous Consultant Studies, Reports, Surveys
RR&A reviewed all of the various consultant studies, reports and surveys along with the CCVB
marketing plan produced by SMG, one of the consulting firms that have been engaged more than
once in recent years. All of the reports - - and the plan itself- - have value, but since little if any
action has been authorized by the CTBID Board since, the value of the consultants' efforts and
contributions has been significantly diminished. RR&A agrees with much of the consultants'
findings, opinions and recommendations - - lack of awareness hurts Carlsbad's tourism
promotion efforts, competition outspending Carlsbad by 3-or-4-to-l, need for increased funding,
new attractions, internal communications with the City, long-term tourism strategy, cooperative
alignments within the region, a need for the community to "come together" in support of tourism
and necessary improvements in signage, events, beach areas and other City-controlled
environments.
Options for CTBID Board to Consider Going Forward
1. Continuing with current status quo (no changes); retaining CCVB & SDNCVB @ $1 BID tax;
increase spending up to $200K on upgrading current CCVB website
2. Reconstituted DMO with new funding @ 2% of hotel room revenues providing DMO with a
$1.4M to $2.4M more competitive budget allowing the DMO to operate on "a more level playing
field"
3.
EXHIBIT 1
Carlsbad SWOT Test
Strengths
o Weather
o Beaches
o Quality of life
o World class amusement park (Legoland)
o Unique attractions: GIA, Flower Field, Museum of Music
o Trophy resorts, time shares, inns and B&Bs
o More affordable hotels & vacation rentals
o Historic, quaint Carlsbad Village
o Shopping
o Geographical location advantages - - easy access San Diego and its multitude of attractions
Weaknesses
o Carlsbad's "brand" has been neither established nor managed correctly
o Carlsbad has no established "promise"; no "value proposition"; no real "product differentiation"
o Carlsbad's current tourism promotion contractors are underfunded with limited real production
o Carlsbad's numerous tourism marketing alliances (Legoland, S.D. Con-Vis, S.D. No. CVB) have
been sorely underutilized
o The City of Carlsbad government has not been a strong enough partner in tourism promotion with
support and funding as have other competitive CA coastal cities
o The CTBID Board's reluctance to take action of consultants' recommendations and spend those
available funds
o Carlsbad's tourism stakeholder community is not united; currently, there is no product synergism,
no real consensus for or in support of a clear, consistent Carlsbad "brand"
Opportunities
o Current troubled economy has forced many consumers to revise all vacation travel plans and to
consider new "staycations" and "daycations" trends, vacations closer to home
o New pool of "displaced" vacation business from cancelled or deferred trips to Hawaii and Las
Vegas (due to reduced air lifts, increased fuel costs, soft travel market)
o With a more established Carlsbad brand, tourists would be more likely to stay longer, spend more
money, due to increased awareness of Carlsbad's many attractions and venues
o Leveraging current and potential future area visitors through new marketing alliances with
powerful and well-funded partners such as Legoland and S.D. Con Vis
o The forthcoming City of Carlsbad's "General Plan" revision process to address a new tourism
initiative and a strong, new tourism strategy
o Development of long term strategy for sustainable sales and marketing campaigns
Threats
o Tourism promotion loss of funding (CTBID dissolves, City fails to redirect TOT funds)
EXHIBIT 1
o Continued loss of tourism market share due to lack of an established brand, insufficient funding
to promote tourism, and Carlsbad becoming less top of mind as a tourism destination
o Carlsbad's competitive CA coastal destinations capturing greater share due to sound funding and
effective tourism marketing activities (see RR&A's "Selected CA CVB Matrix" attached)
o Carlsbad's "closest" neighbors, e.g., Oceanside's new Wyndham Hotel, marina and waterfront
upgrades; Encinitas, Vista and San Marcos infrastructure and visitor services enhancements
o Carlsbad dropping further off tourists' radar screens as Four Seasons, La Costa and Legoland
continue to not use the name Carlsbad prominently in their extensive marketing campaigns
o Economy: rising gas costs, layoffs, housing mortgage crisis, cost of living, a real recession
Carlsbad's Competitive Destination Overview
RR&A will present a competitive set matrix with accompanying slides depicting the competitive
disadvantages facing Carlsbad's tourism marketing efforts. Carlsbad, for instance, has
approximately 42 hotels with an inventory just short of 4,000 rooms yet spends less than $500K
a year through its CCVB. By contrast, Catalina Island claims only 25 hotels and 1,000 rooms,
but its CVB has a budget of $1.3M. Another example, Laguna Beach, has only 10 hotels and
1,300 rooms, but a budget nonetheless of $1M. Newport Beach, on the other hand, has only 14
hotels and 3,000 rooms, but its budget is an astounding $3.8M. The list goes on and on.
Huntingdon Beach has only 12 hotels and 1,500 rooms, yet its tourism promotion budget is
$1.4M and growing higher sooner.
Tourism Overview 2008-2009
RR&A intends to introduce a tourism overview - - from a 30,000 feet perspective - - on the 26th
for the purpose of making a strong statement about the paradigm shift in world, national, state
and regional tourism marketing. RR&A will address the importance of tourism worldwide, the
impact that tourism has on California's economy, how competitive it has become at every level,
what programs and funding have been redirected toward tourism campaigns and efforts just since
9/11 and how all of the above is relevant to and for Carlsbad today (and tomorrow!).
A Carlsbad "Place"
RR&A fully supports the efforts of the City and the heavily engaged public groups in identifying and then
doing what is necessary to bring a "place" to Carlsbad - - and how vital such a venue would be for both
the quality of life for Carlsbad's local residents, but also for those all-important tourists. RR&A will
remind those attending the presentation on the 26th that "locals" are "tourists", too. And that anything
good for locals (residents and merchants, etc.) is good also for tourists.
m closing, RR&A would like to thank the CTBID Board and the City of Carlsbad government for this
great opportunity to be of service. And RR&A would be remiss in not commenting on the outstanding
job the City of Carlsbad has done in delivering the type of environment, open space, facilities, safety, and
the multitude of high quality City services - - all of which lead to the great quality of life that Carlsbad
provides. And don't think for a moment that any of that is lost on attracting potential visitors in the
future. It is not enough, however, hence RR&A recommends strongly that with the full support of City
government, CTBID Board approves and adopts RR&A's recommendations for going forward.
EXHIBIT 1 - ATTACHMENT
b i r 4 e f paradise
CTBID Board Project
Carlsbad Tourism Marketing Going Forward
Handouts
August 12, 2008
Reint Reinders & Associates
8/15/2008 Reint Reinders & Associates
Group # 1
La Costa Resort
LJ Four Seasons
Resort
LI Sheraton Carlsbad
O Grand Pacific
Palisades
LI Carlsbad Inn Hotel
a G. P. Palisades
HOA
a Carlsbad Inn HOA
LJ Four Season Club
Carlsbad Seapointe
8/15/2008 Reint Reinders & Associates
Group # 1
La Costa Resort
Four Seasons
Resort
Sheraton Carlsbad
Grand Pacific
Palisades
Carlsbad Inn Hotel
G. P. Palisades
HOA
Q Carlsbad Inn HOA
Four Season Club
Carlsbad Seapointe
8/15/2008 Reint Reinders & Associates
Group # 2
Hilton Garden Inn
Motel 6 #471
Homewood Suites
Holiday Inn
Courtyard by
Marriott
-I Inns of
America/ALPS
Ramada Inn
Residence Inns
La Quinta Inn
Motel 6 #1021
Extended Stay
America
8/15/2008 Reint Reinders & Associates
Group # 2
Hilton Garden Inn
Motel 6 #471
Homewood Suites
Holiday Inn
Courtyard by
Marriott
G Inns of
America/ALPS
LI Ramada Inn
Residence Inns
La Quinta Inn
Motel 6 #1021
Extended Stay
America
8/15/2008
_l
Reint Reinders & Associates
Group # 3
Inns of America Suites
Q Hampton Inn (1/08)
G West Inn
G Hyland Inn
G Ocean Palms Beach
Resort
G Beach Terrace
G Comfort Inn
G Beach View
G Carlsbad Travel Inn
G Surf Motel
G Tamarack Beach Resort
G Scandia
G Seabreeze Hotel
G Seashore on the Sand
G Pelican Cove
Q Six (6) other properties
8/15/2008 Reint Reinders & Associates 6
Group # 3
Q Inns of America Suites
a Hampton Inn (1/08)
Q West Inn
Q Hyland Inn
Q Ocean Palms Beach
Resort
Q Beach Terrace
Q Comfort Inn
G Beach View
G Carlsbad Travel Inn
J Surf Motel
Q Tamarack Beach Resort
Q Scandia
G Seabreeze Hotel
G Seashore on the Sand
Q Pelican Cove
G Six (6) other properties
8/15/2008 Reint Reinders & Associates
ltl?.-^r^Selected So.
Coastal CVB Set
Budgets for tourism promotion
$4,000,000 i
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
$440K $1M $3.8M $1.4M
E3 Carlsbad
B Laguna Beach
B Newport Beach
B Huntington Beach
8/15/2008 Reint Reinders & Associates 8
Number of Hotels
within CVB city
Carlsbad (42)
LJ Laguna Beach (10)
Newport Beach (14)
Huntington Beach
(12)
8/15/2008 Reint Reinders & Associates
Selected So. C/\
Coastal CVB Set
Budgets for tourism promotion
$2,000,000
$1,800,000
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
D Carlsbad
11 Catalina Island
• Santa Monica
• Santa Barbara
$440K $1.3M $2.0M $1.8M
8/15/2008 Reint Reinders & Associates 10
Number of Hotels
within CVB City
Carlsbad (42)
Catalina Island (25)
Santa Monica (37)
Santa Barbara (40)
8/15/2008 Reint Reinders & Associates 11
Monthly Occupancy rate-12Month
Period
-
i
C JjSfc
.-
Jp&r
Month of hotel stay CTBID
Carlsbad: missing in action
Alameda, Davenport & Oxnard <
a way.
Alameda
Carmel
Channel Islands National Park
Dana Point
Davenport
Encinitas
Fort Bragg
Half Moon Bay
Huntington Beach
L a Jolla
Laguna Beach
Long Beach
Malibu
Marina del Rey
Monterey
Morro Bay
^
vacations: 32
selections!!!
Newport Beach
Oceanside
Oxnard
Pacific Grove
Pebble Beach
Pismo Beach
Point Arena
San Clemente
San Diego
San Francisco
San Luis Obispo
Santa Barbara
Santa Cruz
Santa Monica
Seal Beach
Venice
8/15/2008 Reint Reinders & Associates 13
Projected State Tourism
Office Budgets By Rank
(in $Millions)
200S
1. Hawaii $85.1 M
2. Texas $63.2M
3. California $58.OM
4. Illinois $50.4M
5. Florida $42.1 M
6. Pennsylvania $31.8M
7. Louisiana $28.9M
8. So. Carolina $28.1 M
9. Arizona $25.OM
10. Colorado $22.7M
Source: TIA
8/15/2008
2005
1. Hawaii $69.OM
2. Illinois $47.8M
3. Pennsylvania $33.OM
4. Texas $30.6M
5. Florida $28.5M
6. West VA $23.1 M
7. Louisiana $18.4M
8. Missouri $17.8M
9. So. Carolina $16.1 M
10. Arizona $16.OM
28. California $8.1 M
Reint Reinders & Associates 14
-10%'
-20%J
U.S. losing world traveling
overseas visitors
2000 2007
World
D Number of Overseas Arrivals to the U.S.Number of Global Overseas Travelers Not Coming to U.S.
8/15/2008 Reint Reinders & Associates 15
EXHIBIT 1 - ATTACHMENT 2
Reint Reinders & Associates Selected CA CVB Matrix II 8/12/08
CVB
Carlsbad
Catalina Isd.
San Diego
San Diego
No.
Temecula
Laguna
Beach
Newport
Beach
Costa Mesa
Huntington
Beach
Marina del
Key
Santa
Monica
San Luis
Obispo
Santa
Barbara City
Monterey
County
Budget
S440K
S1.3M
$21M
S3.3M
S999K
$1M
S3.8M
S1.4M
S1.4M
S800K
S2.M
SIM
S1.8M
$4M
Room Tax
10% City =
$14M
$1/RN BID
12% City =
$4M
10.5% City
S150M
10% City
9% County
8% City
10%
County
10% City =
S8.7M
10% City =
$18M
6% City =
S4.5M
10% City =
$7M
12%
County
14% City =
$38M
10% City
9%
Co. = $21M
12% City =
$15M-
10% Co. =
$16M
10% - 12%
= $40M
Funding
100% BID
65% public
35% private
2% BID
10% of Con
Vis 2% BID
10% public
90% private
2% BID 1%
Arts 1%
CVB
95% public
5% private
2% BID tax
100% BID
2% BID
1% BID +
S250K
County
100% public
60% public
40% private
80% public
20% private
72% public
18% private
Budget
Allocations
100% tourism
marketing
95% tourism,
5% corporate
50% conv.
50% tourism
55% conf.
45% tourism
60% conv.
40% tourism
100% tourism
40% tourism,
60% conf.
20% conv.
80% tourism
15%conv.
85% tourism
25% conv.
75% tourism
30%conv.
70% tourism
10%conv.
80% tourism
25% conv.
75% tourism
100%
destination
marketing
Staff
3
7
63
17
3
4
16
5
6
3
12 + 3 Vis.
Centers
5
10
17
Hotels/Rooms
42/3,900
25/1,000
400/56,000
84/13,600
15/1,700
10/1,300
14/3,000
10/2,050
12/1,500
6/1,000
37/3,600
85/9,200
40/4,500
250/22,000
Room Tax: TOT percentage returned to CVB for tourism promotion plus BID contribution
Funding: sources that fund the CVB tourism promotion; BID, percentage of TOT, or combination of both
Source; Western Association of Convention & Visitors Bureaus www.wacv.com
& Reint Reinders & Associates
EXHIBIT 2
fteintfieindets & Associates
12380 Jtue Cbeaumont
San Diego, CA 92131
PAone: 760-994-9266
s. com
www. remainders, com
Friday, August 08, 2008
RR&A Proposal Phase II (2/18/08 version")
After the initial four months of Phase I, the set of recommendations will be available for
actionable steps to go forward with RR&A's Phase II professional services.
RR&A recommends that the CTBID Board engage the RR&A team for a second phase (Phase
II). Phase II is designed to ensure full implementation and detailed follow up on all
recommendations the CTBID Board approve and adopt. Phase II is expected to last eight (8)
months ($12,000.00 per month, total of $96,000.00).
This follow up mentoring can be a real asset to the organization as it begins to execute on the
marketing plans, new budgets and technology implementation.
RR&A suggests a series of steps that would enable RR&A to interact with leadership and the
staffs, hold weekly meetings, do coaching, teaching and continuously adjust and improve the
newly agreed upon and adopted standards.
RR&A will be reporting monthly in writing and in person to the BID Board, the ultimate
stakeholder leadership.
RR&A is confident that RR&A will be able to have a very effective functioning organization and
have instituted an enterprising spirit to deliver on the Carlsbad tourism marketing initiatives.
RR&A Proposal Phase II (8/8/08 version)
Reint Reinders& Associates (RR&A) to be contracted by the CTBID for a Phase II deployment
for a period not to exceed 10 months at a total compensation of $100,000.00 ($10,000.00
per month for ten months, 9/1/08 through 6/30/09).
Phase II would commence on September 1, 2008 and end on June 30, 2009. This period will
coincide with the balance of the CTBID fiscal year as well as the duration of the existing
contracts with Carlsbad Convention & Visitors Bureau (CCVB) and San Diego North Convention
& Visitors Bureau (SDNCVB), and will allow for a new model and program to be in place at the
start of fiscal year 2009-2010.
Here are the recommendations by RR&A of the specific action? to be performed during the
balance of the fiscal 2008-09 year. Depending on the new level of funding starting fiscal 2009-
EXHIBIT 2
10 approved by the CTBID, not all recommendations may be doable at a lower level of funding.
Plans and tasks to be performed by the RR&A team:
1. RR&A will provide overall management of the implementation process for the 10-
month period of time between 9/1/08 and 6/30/09. Should the CTBID Board approve
and adopt all or most of the critical new initiatives recommended, RR&A will take
ownership of the transition and implementation process. There is no one on the current
CTBID Board to take on the responsibility and serve in that capacity
2. Develop an organization plan and template to include governance, general guidelines,
and standard operating procedures (SOPs) on/for performance measurement/metrics,
position descriptions, compensation, reporting and budgets for approval by the newly
reconstituted Destination Marketing Organization (DM0) and by the CTBID Board; both
organizations (the new Carlsbad DM0 and the CTBID) to become aligned and in synch
for the explicit benefit of the Carlsbad tourism community
3. Develop a new 2009-2010 Carlsbad Tourism Sales and Marketing Plan to be adopted by
the new DM0 and by the CTBID Board, the body that will be funding all of the
components of the Plan
4. Engage the Mayor and the Carlsbad City Council to discuss, suggest and redefine the
City's roles and involvement with the CTBID and new DM0; in addition, to resolve
funding and upgrading issues of the current Carlsbad Visitor Center
5. Engage the Mayor and the City Council in a discussion, to seek buy in on certain other
critical infrastructure issues of great importance to Carlsbad tourism stakeholders that
will enhance and strengthen the overall Carlsbad brand
6. Engage the Mayor and the City Council members in a discussion on reformatting or
revising the City's General Plan to incorporate a formal strategy for tourism
7. Engage the San Diego ConVis and SDNCVB to develop a specific plan for a new, formal
alignment between the new Carlsbad DM0, S.D. ConVis and SDNCVB especially in view
of the recent tremendous growth of tourism marketing dollars for these two
organizations; with the introduction last year of the S.D. Tourism Promotion Corporation,
ConVis will claim more than $30 million for tourism marketing in 2009; the plans and
alignment initiatives will include Internet, research, advertising and promotions, public
relations and sales and marketing programs and campaigns
8. Engage in dialogue with potential "sponsors" and "partners" and new alliances for the
new Carlsbad DM0, e.g., Legoland and Callaway (potential sources for additional
funding and/or joint marketing efforts)
9. Create a new "advisory board" for the newly reconstituted Carlsbad DM0 to consist of
the very best marketing minds amongst Carlsbad's tourism stakeholders; new advisory
EXHIBIT 2
board to give input on DMO's future marketing plans, strategies, initiatives and
spending; opportunity for creating new synergism between DM0 and hotel stakeholders
10. Develop an RFP and solicit representative consulting firms to conduct a comprehensive
Carlsbad Tourism Economic Impact study in order to produce a 2008 baseline;
importance for all Carlsbad tourism stakeholders, in particular the City government, to
"know the dollars" (that come from tourism locally); RR&A to present the consulting firm
selection to the CTBID for approval and funding
11. Conduct a CEO search and any other key managers required to staff the new DM0; all
candidates proposed to be presented for final review and approval by the CTBID Board
12. Oversee the upgrade and overall enhancement of the VisitCarlsbad.com website; work
closely with Simple View (a preferred provider in CVB website construction and hosting,
already engaged with the present CCVB website); develop an overall plan for the site
that will include SEO (search engine optimization), functionality, navigation, content,
linkages and transaction capabilities along with strategies to improve overall organic
growth; present the CTBID Board with the detailed plan for funding with the intention of
the new site becoming fully operational before 6/30/09
13. Implement and manage a new customized training program made available to all
Carlsbad hotels for managers, revenue managers, front desk, reservations, sales,
catering and conference service personnel, focusing on capturing more room nights
from call ins, walk ins and past and present guests; a sustaining program featuring
monthly workshops; adds value to the new BID contribution by all hotels; program is
designed to help raise Carlsbad's overall occupancy back to a stabilized 70 percent plus;
to be presented to CTBID Board for approval and funding
14. As a highlighted principal strategy of the 2009-2010 marketing plan process, create a
"Branding Carlsbad" initiative to ensure full embracement by the Carlsbad tourism
stakeholders so that, under RR&A's watch and supervision, Carlsbad can be positioned
as a "unique" destination; a primary goal of this branding exercise will be to grow the
F.I.T. (non group, non-business traveler, more leisure driven) business for Carlsbad and
to especially strengthen the demand for leisure product during the six months of
Carlsbad's off-season (Sept. through Feb.), which at present produces a less than
acceptable sub-60 percent occupancy
15. Conduct meetings individually and in small groups with the tourism community
stakeholders to explain (and get input and buy in on) the new DM0 organization and its
sales and marketing strategies, goals and overall value going forward
16. RR&A to meet with and report monthly and/or quarterly with the CTBID Board, orally
and/or in writing - - at the pleasure of the CTBID Board
17. The Phase II fee ($10,000 per month) for RR&A's services entails a maximum of 50
hours per month at the rate of $200.00 per hour; to be billed monthly
3
EXHIBIT 3
1 RESOLUTION NO. 2008-6
2 RESOLUTION OF THE BOARD OF DIRECTORS OF THE
CARLSBAD TOURISM BUSINESS IMPROVEMENT
DISTRICT, AUTHORIZING THE CHAIRPERSON TO ENTER
4 INTO AN AGREEMENT FOR PROFESSIONAL SERVICES
WITH REINT REINDERS & ASSOCIATES
5
6 WHEREAS, the City Council of the City of Carlsbad adopted Ordinance No. NS-778
7 enacting Chapter 3.37 of the Carlsbad Municipal Code on November 15,2005 thereby creating
8 the Carlsbad Tourism Business Improvement District (CTBID); and
9 WHEREAS, the primary purpose of the CTBID is to promote tourism and provide
10 services to visitors to the City of Carlsbad; and
11 WHEREAS, the City Council has authorized the Board of Directors of the CTBID to
12 conduct the business of the CTBID in the time, place and manner that best suits the needs of the
13 Board of Directors of the CTBID, subject to the control of federal, state and local laws governing
14 the activities of a Business Improvement District; and
15 WHEREAS, the City Council has provided the Board of Directors with the ability to
16 contract for services necessary to carry out the purpose of the CTBID; and
17 WHEREAS, Mr. Reint Reinders, by virtue of his extensive experience in the hospitality
18 industry, marketing background, deep understanding of the tourism industry, and long tenure
19 with several successful hotel operations, is uniquely qualified to provide marketing and other
20 consulting services to the CTBID; and
21 WHEREAS, the CTBID contracted with Reint Reinders and Associates (RR&A) for
22 Phase I of a marketing study; and
23 WHEREAS, Reint Reinders & Associates completed phase I of the study and has
24 submitted a proposal for phase II dated August 8,2008; and
25 WHEREAS, the CTBID Board has reviewed the proposal submitted by Reint Reinders
26 & Associates and finds that the services to be provided by Reint Reinders & Associates will be of
27 benefit to the CTBID;
28
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad
Tourism Business Improvement District, as follows:
1 . That the above recitations are true and correct.
2. That the CTBID General Counsel is directed to draft the documents necessary to
enter into an agreement with Reint Reinders & Associates to provide all, or part of
the services described in the proposal dated August 8, 2008, as may be deemed
necessary by the CTBDD Board. The Board agreed to extend the current agreement
for three (3) months, commencing on September 1, 2008 and ending on November
30, 2008. The fee will be $10,000 per month for three months, for a total of
$30,000. Within the next ninety (90) days the Board will meet to discuss whether or
not to extend the agreement further.
3. That the CTBID Chairperson is hereby authorized to an agreement between the
CTBID and Reint Reinders & Associates in a form acceptable to the CTBID General
Counsel for the procurement of the described services.
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PASSED, APPROVED, AND ADOPTED at a regular meeting of the Board of
day of
2008, by the following vote to wit:
Directors of the Carlsbad Tourism Business Improvement District on the
i"T
fcAYES:
NOES: ^
ABSENT: O
ATTEST:
APRIL SHUTE
Chairperson
LORRAINE WOOD x
Pro Tern Clerk of the
Carlsbad Tourism Business Improvement District
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