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Home My WebLink About2015-03-04; Carlsbad Tourism Business Improvement District; 03-15-113; Tourism Industry Study Final ReportCARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT (CTBID) AGENDA BILL AB# 3-15-113 Tourism Industry Study CTBID STAFF /F^^ MTG. 3-4-15 Tourism Industry Study GENERAL Final Report COUNSEL RECOMMENDED ACTION: Discuss Tourism Industry Study report prepared by Strategic Advisory Group and direct staff accordingly. ITEM EXPLANATION: The City of Carisbad and the Carlsbad Tourism Business Improvement District (CTBID) partnered on an economic study of Carisbad's tourism industry that compared Carisbad with similar destination cities and analyzed occupancy rates by room type, tourism marketing spending return on investment and other tourism data to provide strategic recommendations to improve upon Carisbad's strengths and weaknesses. The fimi Strategic Advisory Group was hired to perform the study that began April 2014. On Febmary 17, they presented the final report to the CTBID Board. The report was accepted by the CTIBD board and another meeting was scheduled to discuss the implementation ofthe recommendations in the report. Attached at Exhibit A is a matrix ofthe recommendations made by Strategic Advisory Group in the report. This matrix includes the strategy, tactic and timeframe for each of the recommendations. Staff will walk the CTBID Board through the matrix so they can discuss the implementation of the recommendations/ FISCAL IMPACT: None. ENVIRONMENTAL IMPACT: This action does not qualify as a project under the California Environment Quality Act ("CEQA") and will not have a physical adverse effect on the environment. (CEQA Regulation 15378(b). EXHIBIT A. Tourism Industry Study Recommendations Matrix DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2753, chervl.qerhardt(@carisbadca.aov Recommendation Matrix EXHIBIT A TOURISM INDUSTRY STUDY- CARLSBAD, CAUFORNIA Recommendation Strategy Report Pages Tactic Timeframe Communication Regular stakeholder communication Keep stakeholders informed and part of the process. Allows for fluid communication to a large audience and provides transparency of the organization. 2 • Monthly 1-2 page email outreach with updates and updates on metrics tracking. • Annual report on success measurements • Immediate Research Research plan Budget resources to execute research initiatives. Continue to refine target marketing efforts. Determine success of on-going efforts 54 • Conduct a Visitor Profile Study every three years • Conduct a benchmarking study biannually • Conduct a Target Audience Study biannually • Conduct a Meeting Planner Survey biannually • Approve research plan for 2015-2016 fiscal year • Conduct first series of research plan accordingly Resources Refocus a majority of the tourism resources on impacting the Shoulder Season Allocate more of the marketing budget for targeted Shoulder Season campaigns 4, 8, 55-62 • Confirm direction for Shoulder Season • Develop direct marketing campaigns for specific segments during the Shoulder Season • Measure success • Begin to plan immediately • Budget approval 2015-2016 fiscal year Reallocate marketing resources for group business Utilize the current budget to support a group sales effort 4, 63-70 • Confirm/adopt group sales plan • Form the oversight committee • Set and agree upon goals • Begin to plan immediately • Budget approval 2015-2016 fiscal year StrategicAdvisoryGroup 9.? TOURISM INDUSTRY STUDY- CARLSBAD, CAUFORNIA Measurement Institute a new approach to measurement and reporting Keep a broad base of stakeholders informed through a monthly report 2,4 • Create/continue the monthly email report to stakeholders tracking quantitative success measures • Include room nights converted, packages sold • Include qualitative feedback on awareness Have agreed upon goals and metrics in place by 2015-2016 fiscal year Have plan in place for adoption 2015- 2016 fiscal year Leisure Sales and Marketing Develop a highly targeted approach for leisure sales and marketing Utilize a direct marketing approach to new and expanded target markets for leisure travel 4, 40-54, 55-62 • Select and confirm top 5 new segments from Nielsen results to pursue for the first 1-3 years • Create specific experiences for the targeted market segments • Work closely with an e- marketing partner to develop a platform for implementation and creative support • Set and agree upon goals • Utilize new success measures to track progress • Decide on top segments immediately • Have plan approved for fiscal year 2015- 2016 • Have creative partner in place for 2015-2016 fiscal year • Have implementation tools in place by August 2015 • Track success in the selected segments for years 1-3 • Reevaluate market segments after three years Refocus target markets for leisure travel Utilize the Nielsen segmentation results to target new markets that have already indicated presence in Carlsbad for tourism growth in Shoulder Season 5, 40-54 • Select and confirm top 5 new segments from Nielsen results to pursue for the first 1-3 years • Keep family-friendly attitude, but add targets direct marketing for these new segments • Track success in new markets • Decide on top segments immediately • Have plan approved for fiscal year 2015- 2016 • Reevaluate target markets after three years StrategicAdvisoryGroup 99 TOURISM INDUSTRY STUDY- CARLSBAD, CAUFORNIA Group Sales and Marketing Create and Utilize MINT search 5, • Recruit Staff member • Begin recruiting staff implement a new results to target group 63-70 • Approve a vertical member in July 2015 group sales and business. Reallocate market approach and with new hire marketing effort resources with establish targets starting in August measurement plan • Obtain and implement 2015 a sales and marketing • Implement new plan software platform September 2015 • Execute a group • Obtain software destination awareness platform by January campaign 2016 * Complete a feasibility • Complete feasibility study on the possibility study on conference of adding a conference center by year 3 center for Carisbad (2018-2019 fiscal year) Governance Create a unified Bring the CTBID and 5, • Perform the necessary • Bring to City Council approach to Visit Carlsbad boards 82-86 legal actions to change for review and governance together by creating a the bylaws of Visit adoption by March singular governing Carisbad and the CTBID 2015 board with active to meet as one board • City Council time to committees • Create one mission on select board behalf of the members and City organization to market Attorney to the destination and reevaluate the legal drive revenue to the entity by budget City approval period for • Create/elect one board 2015-2016 fiscal year of 7-10 people • Have new board in • Create four place by July 2015 committees to form accountability measures and delegate responsibilities including: finance, communication and reporting, leisure sales and marketing and group sales and marketing committees. StrategicAdvisoryGroup 100 TOURISM INDUSTRY STUDY CARLSBAD, CAUFORNIA Funding Implement a performance- based approach to new funding Utilize TOT funds through an increase and reallocation. 5, 92-94 • Set and approve goals for TOT annual collection • Increase the current TOT to 12% • Allocate 10% ofthe current TOT collected to support tourism marketing • Approve funding increases by mid year 2016 Create a larger district to include additional partners and increase funding Involve restaurants and additional beneficiaries of tourism spending to include a tourism tax on sales 5, 92-94 • Develop applicable partners for tourism funding, i.e., restaurants, retail and attractions • Begin with restaurants as first industry to be included • Create and approve percentage tax for relative partners • Partners support by June 2015 • Implementation by 2016-2017 fiscal year Increase the current fees for the CTBID Incrementally add a small amount to the CTBID fees 5, 92-94 • Increase current CTBID fees by $0.50 • Implementation of the SO.50 increase should be in place by 2017-2018 fiscal year StrategicAdvisoryGroup 101 City of Carlsbad Tourism Industry Study Recommendation Action Timeline Task Description Final Recommendalions/Transltion/Communicafion SAG Presents Recommendations and City Council Direction Approval Strategic Implementation Session - City, CTBID and Visit Carlsbad Develop Implementation Tasl</Committees Implement Monthly Stal^eholder Communications Send First Outreach to Stakeholders Research Plan Research Plan for 2015-2017 Finalize Approach Meeting Planner Survey Visitor Profile Survey Benchmarl<ing Study Target Audience Study Research Plan Ready for Implementation Resource Allocation Confirm Leisure Direction: Target Markets for Shoulder Season Confirm/Finalize Revised Budget for Leisure Marketing Confirm Leisure Marketing Vendors for 2015-2015 FY Leisure Sales & Marketing Finalize Leisure Goals for 2015-2016 FY Develop Direct Marketing Campaigns for Selected Shoulder Season Targets Create Specific Packages and Experiences for Selected Segments Group Sales Plan Confirm/Approve Group Sales Plan Form the Group Sales Oversight Committee Approve Vertical Markets Finalize Group Sales Goals Finalize Job Description for Business Development Manager Obtain and Implement a Sales & Marketing Software Platform Hire Business Development Manager Complete Feasibility Study for Conference Center Governance Finalize Legal Process to Unify Governance Nominate and Finalize New Board Members Revise and Finalize Board Mission Develop Four Committees: Finance, Communication, Leisure Sales & Marketing and Group Sales & Marketing Measurement Finalize and Approve New Metrics for Leisure and Group Sales Funding Increase TOT rate to 12% Approve 10% Allocation of TOT to Fund Tourism Marketing Develop Additional Partners for Tourism Assessment Create and Approve Percentage Assessment for Partners Increase or Modify CTBID Fees Tourism Product Development Begin Planning Transportation System with Carlsbad Village as Potential Partner Transportation Contractor in Place Transportation System Operational Complete Negotiations with Lagoon Property Owners for Rights to Expand the Tourism Product NRG, YMCA, California Watersports Negotiate New Terms and Conditions of the California Watersports Vendor Agreement Complete Feasibility Study for the Lagoon Capital Project Initiate Discussion with the State Department of Recreation and Parks for Beach Camping Improvements Beach Camping Improvements Plan Approved Beach Camping improvements Implementation