HomeMy WebLinkAbout1991-06-11; City Council; 11193; REVIEW OF THE CCVB 1991-92 BUDGET REQUESTREVIEW OF THE CCVB
Staff report, no action required.
ITEM EXPIANATION:
The Carlsbad Convention and Visitor's Bureau (CCVB) has submitted their 14
92 budget request to the City Manager. The total budget is $302,000 wl
includes a proposal that $267,000 in City funds be used for the contract pel
from October 1, 1991 through September 30, 1992. The request represen
18.7%, or $42,000, increase over the current City support level of $225,C
Although the funds would not begin to be spent until October, 1991, the Cou
reviews the CCVB budget request as part of the Citywide budget process.
The CCVB will be presenting their program to the City Council.
FISCAL IMPACT:
EXI-IIBITS:
1. May 16, 1991 letter to the City Manager containing the CCVB buc
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May 16, 1991
Mr. Ray Patchett
City Manager
City Carlsbad
1200 Elm Avenue
Carlsbad, CA. 92018
Dear Ray,
The Convention Zi Visitors Bureau is requesting $267,000 from the Cit
Carlsbad to help fund our programs and operate the Visitors Information Ce
from October 1, 1991 to September 30, 1992.
The increase over requests of previous years reflects the hi
administrative costs of operating the depot and the increased staff
necessary to fulfill our ever expanding commitments.
Two years ago the ConVis was only superficially involved in local events.
we are on the planning committee of most major events that occur.
'The ConVis is involved in two additional major events this year, the h
Tennis Classic and the San Diego Maratliuii.
This year we have doubled the number of travel trade shows we atter
promote Carlsbad. We have greatly increased our advertising program and
made it a top priority to communicate with travel witers and eiicourage
to write about Carlsbad.
While the ecorioiny and Gulf War took its toll on the hospitality industry,
confident the marketing programs we have in place prevented the decline
being severe. We are positioned to recover rapidly as the economy improvf
A perusal of our quarterly reports to the City is an indicator of posi
trends. For example from January I - March 31, 1990, we responded to 587 I
requests for information and i303 written inquiries. Froin January 1 - 1
31, 1991, we responded to 1025 phone requests for information and 3201 wri
inquiries. I am sure this increase in interest in Carlsbad will tran:
into a healthier hospitality industry in the future.
We will be pleased to provide you with any additional information you ne(
develop our budget request.
+dJ STEVE LINK
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FY 91-92 BUDGE
I NCOBfE :
$261 , 000 City of Carlsbad
35,000 Other s our ces
$302,000 Total
ADMINISTRATIVE EXPENSES:
$ 84,100 Salaries
8,300 Benefits
16,500 Payroll Taxes
12, 000 Accounting/Legal
2,400 Insurance
1, 800 Ut il it ies
1,200 Equlpment Rental
I, 000 Ma i n t e na n c e
2,200 Janitorial
6,000 Telephone
6,000 Post age
1,800 Offlce Supplies dr Copies
1,800 Auto Expenses
2,400 Dues/Conferences/Education
1,800 Publication purchases
2,000 City Audft
1,000 Depot Property Taxes
6 00 Misc.
$154,000
PROGRAMS :
$ 55,000 Multi-media advertising
5,000 Video
12, 000 Trade Shows
5,000 Fam Trips
14,000 Print Brochures
2,000 Advertising Specialty Items
15, 000 Special Events
2,000 Special Projects
8, 000 County Project
$148,000
$302,000 Total
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CARLSBAD.
1991
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EXECUTIVE SUMMARY
BACKGROUND
This study marks the first comprehensive analysis of the role, effectiveness, and funding
history of the Carlsbad Convention and Visitor’s Bureau conducted by the Carlsbad
Chamber of Commerce. The findings and recommendations represent hundreds of hours
of compilation and analysis of data from Convention and Visitor’s Bureaus throughout the
State of California and the United States.
The study is divided into two parts. The first is an analysis and comparison of Carlsbad with
other Convis’s and includes recommendations for changing city budget processes. The
second is a marketing plan with recornmendations for future spending priorities.
METHODOLOGY
Most of the summary data was provided by the Western Association of Convention and
Visitor’s Bureaus for approximately thirty-five (35) Convis bureaus from throughout the
State. Criteria were established for comparison purposes and those which most closely
resembled the Carisbad Convis were selected for more in-depth data collection. A survey
instrument was developed for garnering additional budgeting and operational information,
and mailed to various Convis bureaus.
Following receipt of data, certain Convis’s were contacted either by phone or in person for
comprehensive interviews. Because of its national reputation, compatibility and proximity,
the City of San Diego Convis contributed more extensive data for both the analysis and
marketing plan section of this study.
FINDINGS
The City of Carlsbad has been operating tourist promotions under contract with the
Chamber of Commerce’s Convention and Visitor’s Bureau since 1985. In the last four years
of program operations, Carlsbad Convis has experienced decreasing real city revenues
despite almost an 80% increase in TOT revenues generated for the City of Carlsbad. Since
FY 57 - 88, its spending power has decreased to $199,000 in inflation adjusted dollars, in
spite of a $25,000 increase to its budget. Over this same period, Convis has applied to the
City for funding on a yearly basis and has seen its percentage of city TOT revenues decrease
from 9.76% in FY 87-88 to only 6.08% in FY 90-91 - an almost 50% decrease.
The City of Carlsbad ranks second in San Diego County in revenues generated, and more
than doubled the proceeds of the other five (5) North County cities combined. In
comparison to bureaus with similar budget sizes throughout the state, Carlsbad Convis’
percentage received ranks last. In comparison to cities with a similar amount of hotel and
motel rooms, Carlsbad Convis’ percentage of City TOT revenues ranks last.
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Additionally, eleven (11) communities of the 35 surveyed, or approximately one-thir
designate a set percentage of TOT revenues each year to support Convention and Visit
promotions. Nine of these cities are designated more revenues than Carlsbad. The fi
remaining, Modesto and Tuolumne, have budgets which are more than 25% less th
Carlsbad Convis. Additionally, each represents at least 38% fewer room than Carlsbz
Tuolumne, being a countywlde organization, also receives matching funds from the Cour
and designated funds from the Lodging Association to assist its budget. Thus, of
designated bureau’s of equal or greater size, Carlsbad Convis’s funding level ranks last.
Equally important are the findings of the International Association of Convention a
Visitor’s Bureaus (ICVB) which has analyzed incremental spending by visitors and touri!
Using the most conservative ratio from their findings, it is estimated that each dollar spc
in tourist promotion brings a minimum return of $7.00 in state and local taxes, includ
hotel, meal and sales taxes; as well as incremental jobs. Additionally, local business are 1
beneficiary of such purchases as meals, car rentals, souveniers, etc which some bure:
estimate to be a multiplier of as large as 20 to 1.
RECOMMENDATIONS
Overall, by most methods of comparison, Carlsbad Convis produces one of the IT
effective returns of a city’s re-investments of TOT revenues. Yet, in spite of its ped
rnance, Carlsbad Convis has been receiving a decreasing percentage of TOT revenues i
decreasing real (inflation adjusted) dollars. Carlsbad Convis believes its prornotio
program would be more consistent and effective if it could plan on steady funding.
The City of Carlsbad should provide an incentive to its Convention and Visitors Bureai
increase the city’s portion of its TOT revenues. By designating a set percentage of rever
received, Carlsbad Convis will have incentives to provide more effective and produc
programs - its financial fortunes can rise with a better performance. Carlsbad Co
recommends that the designated percentage be established at 7.22% (which is the avei
of its four years percentages of TOT). This rate would also place Carlsbad at the me(
of all designated bureau’s in this survey. Additionally, the establishment of a ye
percentage will enable Carlsbad Convis to conduct better planning since it will know be
what its funding levels will be.
At the same time it designates this set percentage, the City of Carlsbad should streng
the role of its Convention and Visitor’s Bureau Advisory Panel. This action will allou
more thorough review and monitoring of Convis activities to help insure that establishi
percentage of TOT will produce more revenues for the citizens of Carlsbad.
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ANALYSIS AND COMPARISON
STUDY
CMUSBAD
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I. CARLSBAD CONVIS
The Carlsbad Convis was created as a division of the Carlsbad Chamber of Commerce E:
it has its own Advisory Panel, manager and staff.
The Carlsbad Convis is charged with the duties to create, maintain, and supervise
coordinated marketing program to advertise, promote and make known the resources oft
city for the purpose of increasing tourism and to provide informational services to bc
visitors and residents of the City of Carlsbad.
Carlsbad Convis has two full time staff members including the manager to execute tl
purpose. The staff utilizes a variety of marketing techniques to increase tourism. The
activities include, but are not limited to, trade shows, sales blitzes, brochures, magazi
advertisements, promotions and special projects, and manning the visitor information cen'
7 days per week.
To provide all of these services, Convis is allocated financial support from several sourc
$225,000 from the City of Carlsbad (of which $55,000 is matching funds) and $55,000 wh
is raised by the staff from private entities.
In the last fiscal year completed, the City of Carlsbad ranked behind only the City of 5
Diego in tourism. Correspondingly, the F'Y 90 TOT revenues for Carlsbad were second, i
the city's proceeds totaled more than twice the combined earnings of the five other No
County cities.
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11. HISTORICAL DATA
A. San Diego Convention and Visitor's Bureau (COWIS)
San Diego Convention and Visitor's Bureau was formed in 1954 and according to counc
policy, the City of San Diego, "recognizing the importance of the functions of the Convi:
has funded it since 1964. San Diego Convis receives 20% of 6% of TOT net of administr
tion costs and Navy Field revenue and 20% of the 8th cent net.
Over the years, the City of San Diego has collected an increasing amount of TOT revenue
San Diego City TOT
Fiscal TOT Allocation % of
Year Collected to CONVIS Total
65-66 $716,139 $420,000 58.6%
66-67 $1,065,313 $455,260 42.7%
67-68 $923,891 $486,000 52.6%
69-70 $1,706,778 $596,700 35.0%
70-71 $1,792 , 136 $682,000 38.1%
68-69 $1,406,275 $557 , 772 39.7%
71-72 $1 , 976 , 996 $750,000 37.9%
72-73 $2,265,810 $800,000 35.3%
74-75 $3,604,652 $800,000 22.2%
77-78 $5,976,919 $1,257,000 21.0%
73-74 $3,056,930 $800,000 26.2%
75-76 $4,220,874 $1,020,000 24.2%
76-77 $4 , 951,008 $1,125,000 22.8%
17.7% 78-79 $7,455,247 $1,324,125
79-80 $10,865,252 $1,518,750 14.0%
80-81 $12 , 159,931 $1,735,000 14.4%
81-82 $13,451,226 $2,442,809 14.3%
82-83 $12,105,500 $2,567,946 21.2%
83-84 $14,925,406 $2,967,946 21.0%
84-85 $17,361,656 *$3,984,189 22.9%
85-86 $20,370,485 *$4,776,310 23.4%
86-87 $23,567,029 $4,798,732 20.3%
87-88 $26,172,012 $5 , 158,780 19.7%
88-89 $32,098,536 $5,606,896 17.5%
89-90 $38,900,000 $6,589,930 17 %
*Included CPAC subsidy
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Fiscal TOT Allocation City Matching Fundraising % of
Year Collected to CONVIS Funds & In-Kind TOT
87-88 $2,049,374 $200,000 $0 $0 9.76%
88-89 $2,78 1,372 $200,000 $0 $0 7.19%
89-90 $3,414,663 $170,000 $30,000 $30,000 5.85%
90-91 $3,700,000 $170,000 $55,000 $55,000 6.08%
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111. COMPARISON TO SIMILAR CONVIS
To analyze the ways in which other similar size cities deal with Tourist Occupancy T
issues, this study reviews and compiles the following data which is as complete and thorou‘
only as the information was supplied in response to the survey instruments and other da
obtained from the Western Association of Convention and Visitor’s Bureaus and t’
Convis’s themselves.
A. CONVIS’s with Similar Budgets.
Six other Convis’s were found in the State of California which work with a total bud)
similar to Carlsbad Convis ($250,000-$311,000.) Carlsbad ranks last in percentage of Tc
revenues received. Additionally, if you factor in the county contribution to Napa, Carlsl
is more than three times lower than the next closest percentage.
Ranking by City City TOT City TOT % of Percentage Contrib. Revenues TOT
f Visalia $255 I 028 $520 I 000 51.9%
2 Solvang $300,000 $878,944 34%
3 Vallejo $250,000 $825,000 30.3%
4 Eureka $232 I 082 $947,274(est) 24.5%
5 Concord $226,392 $925,000 24.47
lo%* $150,000 $1,500,000 6 Napa
6.08q 7 CARLSBAD $225,000 $3,700,000
* Receive equal amount from County
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\ B. \ CONVIS’s with Similar TOT Rate
Ten other cities were found in the State of CaIifornia which have a similar city TOT rate as
the City of Carlsbad.
city City TOT TOT city
Rate Revenues Contribution
San Jose 10% $3,040,000 $3,040,000
Long Beach 10% $22,250,000 $2,225,000
Oakland 10% $7,500,000 $1,200,000
Lake Tahoe 10% $35,209,125 $926,000
Snt Barbara 10% $5,500,000 $660,495
Sacramento 10% $5,800,000 $591,838
Ventura 10% $2,000,000 $400,000
CARLSBAD 10% $3,414,663 $255,000
Vallejo 10% $825,000 $250,000
Bakersfield 10% $2,600,000 $234,000 1 Naps 10.5% $1,500,000 $150,000
._ ---- -_ _-__ - --_. - w
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C. CONVIS’s with Similar Number of Rooms Available
Four Convis’s were found which represent a similar amount of hoteI/motel rooms
Carlsbad Convis. Carlsbad’s percentage of TOT ranks last in comparison to these citie:
Rank City # of # of City TOT City TOT %o
Rooms Hotels/Motels Revenue Contrib. City
1 Oxnard 1,600 10 $1,600,000 $385,000 24.
2 Stockton 2,100 11 $1,200,000 $267,500 22.
3 Santa
Monica 2,350 27 $5,400,000 $740,000 13.
4 Riverside 2,000 17 $1,063,155 $100,000 9.
5 CARLSBAD 1,945 21 $31414,663 $2251000 6.
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D. CONVIS’s Receiving a Set Percentage of City TOT Revenue
Eleven Convis’s have been identified in California which receive a designated percentage of
City TOT revenue. Carlsbad’s amount of TOT ranks behind nine of these cities. When
room size is factored in, Carlsbad’s city contribution of $225,000 is last.
Rank City % City TOT Total Bureau Contributic Amount Revenue Budget From City
1 Redding 31% $1,500,000 $471,000 $471,000
2 Eureka 24.5% $947 , 274 (est) $291,913 $232 I 082
3 San Diego 20% $40,025,700 $8,305,500 $6,589,930
4 Bakers-
field 9% $2,600,000 $352 , 655 $234 , 000
5 San
Fransisco 7.3% $67,000,000 $8,900,000 $5,000,000
6 [CARLSBAD 7.22%* $3,700,00(est) $ 302,000* $ 267,000*]
7 Tuolumne 2%* $lI750,000(est) $194,638 $35,000
8 Lake
Tahoe 2% $35,209,125(est) $2,838,780 $926,000
9 Modesto 1.25% $1,022,690 $157,250 $146,358
10 Newport
11 Palm
Beach 1% $7,000,000(est) $780,000 $700,000
Springs .6%** $18,000,000 $1,6OO,OOO $1,100,000
12 Los .5% $66,000,000 $8,754,700 $6,277,500 Angeles
* Also receives an equal percentage from County.
** Designated Percentage of gross hotel sales.
* Proposed
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IV. COMPARISONS TO OTHER CITY EXPERIENCES
A.
Patricia Thompson, the City Manager of Napa recently wrote an article about the ro
of tourism from a city budgeting point of view. She wrote it believing if a greater numb
of people knew more about the facts concerning the tourism industry, maybe peop
wouldn't be so reluctant to see tourism businesses set up shop.
City Use of TOT Revenue
She thinks that the right kind of tourism can be very beneficial because the tax
tourists pay help keep the taxes of city residents low. She said the main source of reveni
for cities after the passage of Proposition 13 ''was to be in the form of sales taxes, roc
occupancy taxes, user fees, etc. In any case, property taxes were to be capped and if y
could charge outsiders for city services, more power to you!"
"Many cities," she said, "capitalized on this idea and set about zoning in such proje
as regional malls, hotels and convention centers."
"Outsiders who came to their city for shopping, conventions and tourism, left plei
of revenue behind. Sure some of the money was needed to defray the cost of tra'
improvements and other accommodations; but, for the most part, the visitors and shopp
did not require a great deal in the way of on-going city services. They do, however, help
balance the city's coffers to pay for City services we alone would have a hard time financir
Gary Stilling, Exec. Director of Napa Convis has spent 26 years in the tour
promotion business. He believes designating a percentage of TOT is good business beca
it promotes better planning and better results. He cites statistics from the Internatio
Association of Convention and Visitor's Bureaus which conservatively estimates that el
dollar invested by a city in tourist promotion brings an economic stimulation in the amc
of $7.00 in spending.
B.
While most business people recognize the importance of advertising and promo
to market share, few Convis have experienced reductions like New York City. In 1988, f
York City was facing severe revenue shortfalls and decided to reduce its $1.5 million SI
of tourist promotion. City staff even went so far as to recommend 0 funding for FY :
and that the city continue placing its considerable TOT revenues in the general func
other priority projects.
What Happens If You Cut?
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Over the first six months of 1989, New York City experienced (compared to 1988):
-a hotel occupancy tax coIlection decline of $7,000,000 or 12%
-a total NYC airport arrivals decrease of 1 million or 5.5%
-a drop in hotel occupancy rates of 4%.
In the summer of 1989, Marsha11 Murdough, President of the New York Convention
and Visitors Bureau gained the support of the business and travel industries to educate .the
city of its flawed funding policy. Later that same year, the City designated a percentage of
TOT revenues (in the form of a -5% increase) to its Convis and more than quadrupled its
budget. Since that time, New York's tourist market share and city revenues have steadily
increased.
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V. FINDINGS
A.
Tourism is an important cornerstone of Carlsbad’s economy. Carlsbad’s FY !
revenues was second only to the City of San Diego in all the county and totaled mc
all of the other cities in north county combined. And Carlsbad’s revenue from t6
increasing. TOT revenues increased 19% from FY 89 to FY 90 and eating establis
reported a similar increase during the same period of time. As more consumers and
in the travel industry become aware of the attributes Carlsbad has to offer, more pec
be coming to visit.
Carlsbad Needs to Keep Pace
As TOT revenue for the City of Carlsbad has gone up, Convis has been all(
smaller and smaller percentage. For FY 90 Convis received 5.85% compared witl
in FY 89 and 9.76% in FY 85. When the Carlsbad Convis budget is adjusted for fo
of inflation, it shows a loss in revenue. Inspite of an increase of $25,000 from the
year, its purchasing power has decreased by 12%. It is receiving only $174,000
inflation adjusted dollars.
Convis has tried to plan on-going programs and expand its services and activitie
hampered with a low budget. Cities with Convis budgets similar to Carlsbad Con
a significantly higher percentage of TOT revenue. Also, all cities, but one, witl
TOT rate have higher City amounts contributed to Convis budgets (and that C
receives an equal allocation from the County.) And all cities, with a similar amou
and motel rooms, have higher City contributions to Convis budgets. In additio
unusual for cities to allocate a percentage of TOT revenue to Convis. Eleven c
State of California allocate a percentage ranging from .6% to 38%.
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In a recent newspaper article, Peter Norby has said, "In Carlsbad, the net result of
tourism is increased tax revenues that enable the city to provide enhanced amenities for our
community. The TOT is a vital piece of the municipal budget. No other form of revenue
gives the city as large a percentage as that tax. For every dollar spent on a hotel room, the
city gets 10 cents. The city is like a partner with the tourism industry."
B.
The growth of TOT revenue over the years shows the importance of re-investing a
portion of it in the promotion of tourism. By placing more money in the Convis budget, the
Convis staff is able to conduct more thorough and consistent planning and on-going
programs that will bring more visitors to Carlsbad, who then in turn spend money. Increased
tourism also increases:
Advantages of Re-investing a Percentage of TOT Revenues in Convis
* TOT Revenues
* Sales Tax Revenue * Retail Business Revenue * Restaurant Revenue * Service Industry Revenue * Opportunities for Employment * Opportunities for New Businesses
It is a continuous cycle. Convis is not asking the City of Carlsbad to increase spending; it
believes that re-investing designated TOT revenues year after year will result in increased
proceeds for the City.
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RECOMMENDATIONS
While the City of Carkbad has experienced increasing TOT revenues, it has lagged behind in its commitment to promotion of
itselfand its amenities. This lack of investment forfuture revenues
has not impacted Carlsbad significant&, primarily due to the raise
in TOT rates @om 8% to 10%. However, ifpromotional budgets
coiltime to decline by an average of 5% per year, Convis could
experience increasing dificulty in continuing to generate an
additional $300,000 per year for the city’s general fund projects.
Also, as attraction of tourism becomes increasingly competitive
and internationalized, Carkbad must develop and invent strategies
to keep its increasing market share. Long term planning is a key
to this end.
Tlzerefore, the City of Carkbad should adopt the following steps in
an effort to incentivize Convis and increase its general fund
revenues:
1) Adopt the average level of funding (7.22%) as a
standardized rate to incentivue Convis and allow for
better planning.
Strengthen the role of the Advkory Panel to insure
that the investment of designated revenues will
produce increased return to the City’s general fund.
2)
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1991 - 1992
lUARKETING PLAN
FOR
CARLSBAD
CQMS
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SITUATION
City Tourism
The Carlsbad Convention and Visitors Bureau (CONVIS) was established by the Ci
Council to "create, maintain and supervise a coordinated marketing program to adverti:
promote, and otherwise make known the resources of the City of Carlsbad for the purpc
of increasing trade and commerce through tourism."
In addition to being close to the attractions of San Diego, Carlsbad can offer a qu'
small coastal village atmosphere with unique shopping and recreational opportunities, a
less traffic.
The City of Carlsbad has consistently received an increasing amount of rever
generated from transient occupancy taxes (TOT). In Fiscal Year 1990 Carlsbad's T
revenue, at 3.4 million, was second only to the City of San Diego. And Carlsbad's T
revenue totaled more than all of the cities in North County combined.
According to the State Board of Equalization, Carlsbad eating establishmf
reported $49,348,000 during FY 90, compared with $43,979,000 during FY 89.
National Travel
According to the US. Travel Data Center the airline travel industry was essent
flat in 1989 with a 0.2% increase in revenue passenger miles. However, automotive tr
increase in 1989 more than 4.3% outpacing air travel for the second consecutive year. '
increase in automotive traffic reflects a ttcloser to home" pattern of vacationing, as we
consumer resistance to higher airfares. (San Diego Convention and Visitors Bureau)
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SAN DIEGO TOURISM MARKET
San Diego Convis describes the personal pleasure market as San Diego’s largest
market segment. Approximately one half of the total visitors to the area come for pleasure.
The San Diego Convis reports 38% of the total visitors to San Diego come from California,
especially Southern California, and Arizona.
San Diego Convis also explains that the pleasure travelers determine their own
destination plans and can be influenced to choose San Diego as their destination.
According to San Diego Convis, many international visitors are also traveling to San
Diego for personal pleasure. In 1989, 17.3% of all visitors to San Diego were from foreign
countries. Western Europe accounted for 8.3%, Canada for 4.9%, and Pacific Rim for
almost 2%. Although the number of visitors from Japan is low, they posted the largest
gains. San Diego Convis describes the international market as highly desirable because these
visitors are characterized by relatively high spending patterns (prime consumers of hotel
space, transportation, food and entertainment.)
San Diego Convis reports that Western Canadians arrive in San Diego primarily by
car and stay an average of 9 nights -- a length of stay significantly longer than the average
personal pleasure visitor (4 nights). Also, Western Canadians daily spending is slightly
higher.
Western Europeans, on the other hand, usually don’t travel to San Diego as their
primary destination but their average length of stay in the U.S. (22.8 nights) facilitates their
ability to include San Diego on their itinerary.
San Diego Convis also reports that many of the Japanese visiting the United States
do not travel beyond their primary destination (29% of Japanese travelers to the U.S. come
for business and 58% for pleasure). Japanese visitors flow through west coast gateways (San
Francisco, Los Angeles and Seattle) and their average length of stay is 8 nights. San Diego
Convis describes significant growth in outbound Japanese travel and expects it to continue
as long as the yen maintains its monetary strength relative to the dollar.
STATE OF TEE ECONOMY
Many factors not present during the last few years, such as a national recession, rising
unemployment, skittish consumer spending, uncertain gasoline prices and war in the Persian
Gulf, may impact the tourism industry in general and Carlsbad’s tourism in particular.
Therefore, it is now necessary to compete more vigorously for every potential tourist.
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Goals
* To increase awareness of Carhbad by members of the travel indushy
and media.
To generate awareness as a travel destination among residents of
Southern California, Arizona, Canada, Japan.
To increase the number of tourists visiting Carlsbad.
To increase the amount of visitor spending.
To increase hotel and motel occupancies in Carlsbad.
To increase number of nights vkitors spend in Carlsbad.
To increase TOT revenues to Carkbad.
To increase sales tax revenues to Carlsbad.
To increase retail business, restaurant and service industry revenues.
*
*
*
*
*
*
*
*
* To create more employment.
* To create opportunities for new businesses.
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Obiectives
* Promote Carlsbad as a personal pleasure travel destination.
Emphasize the historic, scenic, retail and recreational attributes that the
civ has to offer.
Increase Carlsbad 3 personal pleasure market position.
Increase Carlsbad 3 position as a warn climate destination in cold
weather markets.
Increase Carlsbad's position as a refreshing climate destination in desert markets.
Generate awareness and desire among international travelen for
Carlsbad as a secondary destination.
*
*
*
*
* 0
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Strateev
Travel and Trade
*
*
Attend cooperative trade and travel show program.
Provide travel agent familiarization tours to enable members of the trai
indusny to learn about the attributes Carlsbad offen as a vacation destinahk
Conduct regional travel agent and tour operator sales blitzes.
Work with receptive operators in Los Angeles and San Francisco so tl
recommend to their tour companies to include Carlsbad as an add Hion to th
itineraries for intemationai travellers.
Host special functions for Japanese receptive operators based in Los Arzgc
and San Francisco.
Dktribute collateral materials to travel agents and tour operators as reqiiestc
*
*
*
*
Promotions
*
*
*
Instigate media (radio and television) promotions.
Instigate travel indusv (i.e. air1ine)promotions.
Co-sponsor coiitest in other cities or regions and offer a free weekerz
Carlsbad. Work with local businesses to put package together (restaur
hotels, retail businesses and recreational facilities). Possibly tie contest
an event (i.e. All Star game or Sea world Bowl).
Develop and implement a direct mail campaign to inform travel agents L;
Carlsbad.
*
* Coordinate, when appropriate, promotional oppomnities with the
Tourism Office and San Diego Convis. (i.e. Maple Leaf program)
Assist in the execution and promorion of local events emphasizing the
attributeslbenefits Carlsbad has to offer. (Le. San Diego Marathon, Arne
Cup, All Star game.)
*
W 0
Advertising
*
*
Participate in cooperative advertiring programs.
Implement advertking campaip emplzasuing the attributes Carlsbad has to
offer. Focus on coilsurner and travel trade publications.
Media
* Write and distribute to targeted publications press releases on upcoming
special events sponsored by the Ciy of Carhbad.
Write and distribute to targeted publications press releases to stimulate
iitterest in Carlsbad and build a desire to choose Carkbad as a vacationlbusiness
destination.
Host travel writers. and other media tours to educate and allow for an
up-close experience with Carkbad.
*
*
Other
* Work with Carlsbnd brrsiizesses to continue cash and in-kind cormiburioizs
programs.
Maintaiiz central reservation mid information service tJirougJz the Hsiror Information Center.
*
FOUOW-UP
* Monitor where visitors are corning from, who they are how long they are
stayiirg why hy chose Carkbad, wlieii are they coming who made the
deckion.
Develop and present quarterly report with statistics testimonials proving the
profitable work of the Carlsbad Convk.
Assemble aid present package of press clippings of amkles written about
Carbbad.
*
*
a e
FY 91-92 BUDGET I NCObfE :
$261,000 City of Carlsbad
35,000 Other s our ces
$302,000 Total
ADMINISTRATIVE EXPENSES:
400102 $ 84,700 Sa lar i es
401 002 8,800 Benefits
401802 16,500 Payroll Taxes
822302 12,000 Accounting/Legal
819002 2,400 Insurance
8311 02 I, 800 Uti 1 it ies
817602 1,200 Equipment Rental
825002 1,000 Ma i n t ena n ce
823002 2,200 Jan1 tor tal
831002 6, 000 Telephone
823402 6,000 Pos t age 829002 1, 800 Office Supplies d( Copies
511502 1,800 Aut o Expenses
822402 2,400 Dues/Conferences/Education
624602 1,800 Publication purchases
81 1002 2,000 City Audit
830202 1,000 Depot Property Taxes
839002 600 Mise.
$154,000
PROGRAMS :
611102 $ 85,000 Multi-media advertising
634602 5,000 Video
630002 12,000 Trade Shows
617802 5,000 Fam Trips
612002 14,000 Print Brochures
628002 2,000 Advertising Specialty Items
619002 15,000 Special Events
639002 2,000 Special Projects
840002 8,000 County Project
$148,000
$302,000 Total