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Home My WebLink About2020-04-08; Carlsbad Tourism Business Improvement District; ; Tourism Marketing Services ProposalAB# 4-20-190 MTG. 4-8-20 RECOMMENDED ACTION: CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT AGENDA BILL Tourism Marketing Services Proposal Review Visit Carlsbad proposal and direct staff accordingly. ITEM EXPLANATION: CTBID STAFF (!H,_,, -GENERAL COUNSEL Since the inception of the Carlsbad Tourism Business Improvement District (CTBID), the CTBID Board has contracted with Carlsbad Convention and Visitors Bureau S0lC-6 corporation (dba Visit Carlsbad) to provide tourism marketing services for Carlsbad. The scope of those services have included operation of the visitor center, web site development and administration, print and internet advertising, public relations and various other tourism marketing activities identified in the contract for that fiscal year. The Visit Carlsbad Board has developed the 2020-21 proposed budget and program of work presented at Exhibit 1. The CTBID Board should receive the report and discuss the proposal. Following the discussion, if the CTIBD Board would like to contract with Visit Carlsbad to provide these services for 2020-21, the CTBID Board should direct staff to bring back the contract for adoption at the next Board meeting FISCAL IMPACT: For the fiscal year 2020-21, projected revenues for the CTBID are estimated at $700,000. The total payment for these proposed services for the twelve-month period is $800,000. The CTBID has a fund balance of $640,000. ENVIRONMENTAL IMPACT: This action does not qualify as a project under the California Environment Quality Act ("CEQA") and will not have a physical adverse effect on the environment. (CEQA Regulation 15378(b). EXHIBITS: 1. Proposed budget and program of work for tourism promotion services from Visit Carlsbad for the period July 1, 2020 through June 30, 2021. DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2468, cheryl.gerhardt@carlsbadca.us £,YJ-118/T 1. Cl&,~ bad car.s . Al:IUIIDMO Actual to Date ludptv. Proposed OMO$ Chng DMO%Chng Meludpt FY20 Budget Actual OBIDFY21 btwn FY20 and btwn FY20- v.tance Budget FY21 FY21 INCOME Public Sources CTBID Revenues 1,088,000 894,243 (193,757) 650,000 (438,000) -40% (1) Advertising Revenue Reserve Fund 125,000 150,000 TOTAL INCOME 894,243 ,000 (413,000) -34% (2) EXPENSE LABOR Salaries Officers 102,439 120,923 18,484 {102,439) -100.0% Direct Labor Visitor Services Mgr 39,566 29,703 39,566 0.0% Visitor Services Coord. 11,459 6,231 11,459 0.0% Volunteer -Paid 1,195 868 1,195 0.0% Director of Marketing/Interim ED 84,460 63,407 95,000 10,540 12.5% Director of Group Sales 86,909 75,245 86,909 (0) 0.0% Sales Coordinator -Part Time 6,096 2,202 (6,096) -100.0% Direct Labor -Total -$177,656 $234,129 4,444 1.9% Employee Benefits 60,000 39,991 (20,009) 42,000 (18,000) -30.0% Works Comp 4,000 2,306 (1,694) 4,000 0 0.0% Payroll Taxes 28,200 26,053 (2,147) 20,000 (8,200) -29.1% Group Sales Bonus 10,000 10 10,000 0.0% Total Labor $366,929 ($17,195) $310,129 (124,195) -28.6% PROMOTIONAL PROGRAMS Advertising & Production Winter/Spring Ad Campaign 156,000 65,530 (90,470) (156,000) -100.0% (3) Fall Ad Campaign 0 Total Advertising Campaigns $156,000 $0 Research 10,000 6,222 (3,778) 10,000 0 0.0% Outside Svcs-Digital M ktg 250,000 177,015 (n,985) 250,000 0.0% Outside Svcs-Public Relations 115,000 82,876 (32,124) (115,000) -100.0% (4) Outside Svcs-Website Maintenance PR Integrated Campaigns 0 #DIV/01 Total Outside Services $115,000 $259,891 ($105,-$250,000 (115,000) -31.5% Travel & Entertainment 10,000 2,728 (7,272) 6,000 (4,000) -40.0% Dues & Subscription 9,000 10,644 10,000 1,000 11.1% Collateral Prod. & Fulfillment 1,038 2,000 0.0% Public Relations Events 9,513 10,000 (5,000) -33.3% Total Promotional Programs $355,566 $288,000 (279,000) -49.2% FY21 Proposed Budget WSI~ bad cars GROUP DIRECT SERVICES Technology Memberships/Dues Group Incentive Coronavirus Rebound Sponsorship Sponsorship/Partnership* Marketing/ Advertising Meeting Planner FAMs Site Inspections Total FAM/Site Visits Travel & Entertainment Tradeshows Group Direct Services -Total GENERAL ADMINISTRATIVE Bank Charges Equipt. Rental & Maint . Facility Repair & M aint. General Liability Ins. Office Supplies Postage Taxes Telephone Professional Services Volunteer Program Miscellaneous Utilities Computer Expense Office/General Admin Exp TotalG&A Unapplied Cash Bill Pymt Exp TOTAL EXPENSE ov ER/(UNDER) NOTES: 1 Budget for 40% reduction in revenues 20/21 2 BOOK Budget based on 150K reserve 3 Eliminated 156K Spring Campaign 4 Eliminated outside PR retainer 5 Create additional Group Sales fund to help wi1 recovery of GS market and bookings to help incentivise AdualDMO Actual to Date PropoHd FY191udpt FY19 Budget DMOFY19 ludpt 9,000 8,838 (162) 1,000 934 (66) 50,000 32,000 (18,000) - 19,000 17,250 (1,750) 10,000 16,584 6,584 27,000 1,090 (25,910) 5,000 3,471 (1,529) 4,561 10,000 3,605 (6,395) 50,000 60,397 10.397 -$111,000 $144,169 ($36,831) 500 -(500) 3,200 2,195 (1,005) 300 -(300) 1,000 942 (58) 2,000 741 (1,259) 100 15 (85) 150 -(150) 10,000 6,201 (3,799) 7,000 29,825 22,825 1,000 1,259 259 1,026 697 (329) 2,400 1,920 (480) 2,000 -(2,000) - $I0,676 $43,795 $13,119 $0 $1,213,000 $910,459 ($302,541) tOl 16,216 FY21 Proposed Budget I Proposed DMO$Chng DMO%Chng CTBIDFY20 btwn FY19 and btwn FY19- Budget FY20 FY20 I - 9,000 -0.0% 2,621 1,621 162.1% 50,000 -0.0% 40,000 (5) 20,000 1,000 5.3% 5,000 (5,000) -50.0% -(27,000) -100.0% 5,000 - 10,000 -0.0% 35,000 (15,000) -30.0% $176,621 (4,379) -2.4% 500 0 0.0% 1,000 (2,200) -68.8% 500 200 66.7% 1,000 -0.0% 2,000 0.0% 100 0 0.0% 150 0 0.0% 10,000 0 0.0% 3,500 (3,500) -50.0% 500 (500) -50.0% 1,000 (26) -2.5% 3,000 600 25.0% 2,000 0 0.0% $25,250 $ (5,426) -17.7% $800,000 $ (413,000) -34.0% (O) I FY2021--PROGRAM of WORK for LEISURE MARKETING and GROUP SALES -DRAFT VISIT CARLSBAD Timing VC Strategy and Tactics Q1 Q2 Q3 Q4 Budget Comments Manage digital marketing agency and Social Media " " " " 250,000 Digital Marketing PPC, navtive, programmatic, display, email, SEO Lead Generation for Meetings Market and Events " 176,621 Group Direct and Events Group leads/site visits/FAMs/marketing/tradeshows Develop two advertising campaign -Fall/Winter '19 " " " " 0 Advertising Campaign Manage Public Relations Program of Work " " " " 0 Public Relations Including PR events/programs, media FAMs, active pitching Travel and FAM costs: Approximately 12 national media trips " 10,000 In-house 12 drive market travel vouchers , 1 national trip for deskside meetings Partnerships & subscriptions with regional/national tourism orgs. " 10,000 In-house Association memberships Prioritize and develop market intelligence on the leisure travel segment 10,000 STR Report STR subscription and Carlsbad Visitor Profile Travel & Entertainment " " " " 6,000 Manage visitor publications and fulfillment " " " " 2,000 Visitor center maps TOTAL MARKETING/SALES PROGRAM OF WORK $464,621 DMO FY2021 Budget DRAFT