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HomeMy WebLinkAbout07/01/2003, BUS 4 - PROPOSED CITY OF SAN LUIS OBISPO TOURISM MARKETING PLAN 2003 council '7 1 03 j ac,Enba izcpo12t It.Numbe 0 CITY OF SAN LUIS 0BIS'P0 FROM: Wendy George,ACAO 01 Prepared By: Shelly Stanwyck,Economic Development Manager' SUBJECT: PROPOSED CITY OF SAN LUIS OBISPO TOURISM MARKETING PLAN 2003 CAO RECOMMENDATION Approve the Promotional Coordinating Committee's (PCC) recommendation to adopt the Draft City of San Luis Obispo Tourism Marketing Plan 2003 as presented. DISCUSSION Background In early 2003, a combination of events and industry trends led the PCC to identify the need for an updated Tourism Marketing Plan. First, Council established the major goal for 2003-05 to increase the City's Transient Occupancy Tax (TOT). Second, upon review of the existing Marketing Plan, PCC members determined it should be updated to include a comprehensive strategy for promoting the City. Third, Countywide competition for visitors has increased dramatically in the past several years and Paso Robles and Pismo Beach have been experiencing more growth in the industry than has San Luis Obispo. Fourth, the travel industry has shown little signs of recovering in the area of business travel, an area that our City has traditionally relied upon for significant revenues. Fifth, the PCC was excited about the opportunity to take a proactive approach to solving a piece of the City's budget dilemma. Drafting the Plan The drafting of the proposed Tourism Marketing Plan took several months and is the culmination of the efforts of the PCC, City staff and the current Community Promotions contractors. The existing Marketing Plan was reviewed and areas that needed updating and/or revision were identified. Staff then conducted an assessment of our local and regional competition (Paso Robles, Pismo Beach, Monterey Bay Area and Santa Barbara). Research by staff and PCC members regarding industry trends was also undertaken. Once the research was complete, the PCC's Marketing Subcommittee held a series of meetings discussing this information. The Marketing Subcommittee also held meetings with each of the City's Community Promotions Contractors (Barnett, Cox and Associates, the San Luis Obispo Chamber of Commerce and the San Luis Obispo County Visitors and Conference Bureau) to gain insight into what they thought was working and what they thought was not working. Once the information-gathering phase was complete, the drafting of the proposed Tourism Marketing Plan began. During this time, the PCC held a retreat, facilitated by Jim Seybert. Mr. 4`1 Proposed Tourism Marketing Plan Page 2 Seybert lives locally but is a nationally known marketing and facilitation expert. At the retreat he worked with the PCC to identify "who or what" the City is from a tourism-marketing standpoint and "where" the City should be going. The Committee spent significant time during the retreat visioning for the future. After the retreat, staff was able to summarize and incorporate into the Plan the PCC's proposed marketing objectives and strategies. The draft Tourism Marketing Plan 2003 was reviewed by the PCC at its June 17, 2003 meeting (see attachments 1 and 2) and the PCC is recommending approval of the Plan by Council as presented. The Plan The proposed Tourism Marketing Plan identifies who the target visitors to San Luis Obispo should be: a sophisticated, well-educated, travel-minded; couple, looking for a trip that will provide them with various activities and leave them refreshed at the end. To reach these target visitors the Plan identifies six main objectives: 1. Increase transient occupancy and sales tax. 2. Develop and implement a brand image. 3.Enhance and use as a fulfillment tool the visitslo.com website. 4. Develop and maintain strategic alliances. 5.Collect more data about the City's market position. 6.Establish accountability standards for the community promotions contractors. The proposed Tourism Marketing Plan is divided into the following sections: Executive Summary, Current Market Conditions, Market Analysis, Market Segmentation, Market.Positioning, Marketing Objectives, and Marketing Strategy. The Current Market Conditions section provides historical background on the PCC as well TOT. Local trends in TOT and types of visitor are also reviewed. This section also provides an in-depth competitive assessment locally and regionally. This section naturally came first as it was necessary to describe our competition before identifying how we could best position ourselves in the market. In the Market Analysis section, the City's strengths and weaknesses are analyzed along with opportunities and threats. In doing this analysis the PCC was able to identify a series of opportunities that if capitalized upon could result in increased TOT. Those opportunities range from the seemingly simple task of encouraging visitors to spend just one more night in San Luis Obispo to the more complex task of maintaining and enhancing strategic alliances. After identifying its objectives in the Marketing Objectives section, the proposed Tourism Marketing Plan, sets forth a strategy for the City. First, the development of a brand image or tagline is strongly suggested. Second, marketing San Luis Obispo as the center of any visit to San Luis Obispo County should accomplish many of our objectives. Third, the Plan recommends continuing with a diversified approach to the City's promotional efforts, having several local organizations and an advertising contractor help fulfill our promotional efforts. Fourth, the Plan encourages the continued reliance upon strategic alliances. Fifth, future goals that could be explored further in 1 � � Proposed Tourism Marketing Plan Page 3 coming years are presented. Next Stens Accomplishing the objectives of this proposed Tourism Marketing Plan will require significant work on the part of members of the PCC, the City's Community Promotions Contractors, members of the tourism community and City staff. But, the results of this work will improve the City's fiscal and social health. If approved by Council at this same meeting, a Request For Proposals for advertising contractors will go out and the contractor should be "on-board" by the beginning of September. Staff anticipates bringing to Council for consideration and approval, contracts with the San Luis Obispo Chamber of Commerce and San Luis Obispo County Visitors and Conference Bureau in mid-July to provide visitors services, public relations services and regional marketing and public relations services. If the proposed Tourism Marketing Plan is approved, all of the City's Community Promotions Contractors will then follow the Plan in their efforts to promote the City. FISCAL IMPACT The approved budget for Community Promotions is $379,300 in 2003-04 and$375,200 in 2004-05. Implementation of the proposed Tourism Marketing Plan will be a requirement for each of the City's Community Promotions Contractors. ALTERNATIVES Reject the Plan. Council could reject the proposed Plan but staff does not recommend this alternative. The adoption of a tourism-marketing plan is a critical component of the work program set forth for Council's major goal of increasing TOT in 2003-05. The Plan as presented is very responsive to this major goal. Modification of the Plan. Council could choose to substantially modify the proposed Plan. Staff acknowledges that minor adjustments are always necessary with proposed plans and documents. However, the members of the PCC have worked tirelessly to develop the Plan as presented and substantive changes should not be necessary at this juncture. Attachments 1. PCC Minutes,June 17, 2003 2. Proposed City of San Luis Obispo Tourism Marketing Plan 2003 Electronic File Path: WdminWmj&WCLWgmda Reportslftrk ingPl- 4-3 DRAFT PROMOTIONAL COORDINATING COMMITTEE ATTACHMENT 1 REGULAR MEETING MINUTES June 17, 2003 Council Hearing Room, City Hall San Luis Obispo, CA 93401 1. CALL TO ORDER Chairperson Bob Griffin called the meeting to order at 5:35 p.m. with the following members present: George Newland, Diane Hunt Roberts, Louise Justice, Debby Nicklas, Cate Norton and Wilda Rosene. Betsy Kiser and Shelly Stanwyck served as staff. Also present were: Jonni Biaggini, Maggie Cox, Carrie Head, Dave Garth and Lindsay Miller. 2. PUBLIC COMMENT Robert Mueller of the Days Inn and Super 8 Motels expressed his unhappiness with the City's Community Promotions Program. He feels a different model should be used and relationships should be developed between local hotels and the arts community. Mr. Mueller wants the Monterey Street Area to be promoted as a destination. 3. APPROVAL OF MINUTES The minutes of the regular meeting of May 14, 2003, the special Grants-in-Aid meeting of May 28, 2003 and the special meeting of June 6,2003 were approved as corrected (Hunt Roberts/Justice, unanimous). 4. GRANTS IN AID Betsy Kiser announced that the proposed GIA allocation for 2003-04 would go before Council on July 1, 2003. Betsy will coordinate with Bob Griffin and Diane Hunt Roberts on the presentation. Staff distributed the letter from the San Luis Vintners and Growers withdrawing their request for funding of the billboard. As a result of this letter, the item was pulled from the Council's Agenda that night. Committee members and staff discussed the impact of this request and how there was nothing that could be done to recover the GIA money that would now go back into the reserve funds and not carry over as an encumbered GIA fund. Committee members and staff discussed the intent of the GIA Subcommittee to review the grant parameters and application in the overall context of the PCC and Council's goals. 5. DRAFT MARKETING TOURISM MARKETING PLAN Marketing Subcommittee Chair, Debby Nicklas thanked the subcommittee members and staff for the tremendous efforts expended in preparing the updated plan. Debby focused the committee's attention on the Plan's proposed six objectives (that came out of the PCC's Retreat). There was little discussion, as committee members approved of the content as a whole and decided to forward any typographic or grammatical corrections to staff for incorporation into the final draft. 4-L4 PCC MeetingMinutes of June 17,2u3 � ATTACHMENT 9 Page 2 Rosene moved and Newland seconded a motion to approve the draft 2003 Tourism Marketing Plan and forward it to Council for consideration and adoption. Unanimous. 6. PROPOSED COMMUNITY PROMOTIONS BUDGET ALLOCATION 2003-05 Debby Nicklas summarized the Marketing Subcommittee's recommendations regarding Community Promotions Funding allocations for 2.003-05 as follows: yelar Advertising Chamber Chamber VCB Contractor — Public —Visitors Relations Center 2003-04 $176,900. $39,800 $79,000 $68,000 2004-05 $182,196 $40,990_ $81,370 $70,040 ■ The Marketing Subcommittee recommends using the entire "cola" for 2003-04 as increased funding to the Advertising Contractor so that a brand/tagline can be created immediately • The Marketing Subcommittee recommends that 15% of the Visitors Center allocation or $11,850(of $79,000) in 2003-04 and $12,205 (of $81,370) in 2004-05 be earmarked for the maintenance and improvement, both aesthetically and operationally to the visitslo website. • The Marketing Subcommittee recommends providing a "cola" increase in 2004-05 of 3% to the Chamber-PR, Chamber-Visitors Center and VCB contracts and providing an increase to the Advertising Contractor to total an allocation of $182,196 in 2004-05. Justice made a motion to accept the Marketing Subcommittee's recommendations as outlined in the memorandum. Nick/as seconded. Unanimous. An ad hoc committee of Nicklas, Norton, and Newland will meet to review the contracts for the allocations. 7. RFP FOR ADVERTISING CONTRACTOR Shelly Stanwyck summarized the status of the RFP and clarified that the current ad contract term had expired, and no more term extensions were allowed under the contract so a RFP is necessary. Nicklas moved and Norton seconded a motion to approve the draft RFP and recommend to the Council issuance of the RFP as presented. Unanimous. 8. REPORT ON MARKETING Maggie Cox played two of the different radio interviews featuring our own Bob Griffin and Dave Garth that ran last month in LA and the Bay Area. The big hit of the current ad campaign was the Ad Mail, an electronic mailing to 50,000 names through the LATimes.com site. We ran out of cards after the first day!!!!!!! Over 2,400 packets were mailed out in the past two weeks. The Bay Area had very good response to our radio and print ads. The new medium, electronic I '� PCC Meeting Minutes of June 17,«n13 Page 3 ATTACHMENT and the offer (the passport coupons) seemed to work the best. Maggie has every reason to think the conversion will be strong. 9. REPORT FROM CHAMBER Lindsey Miller reported on several results from recent press releases including the Fresno Bee and Arizona Republic in response to the Chamber's new "Steals and Deals" portion of the visitslo website. Lindsey has been working with a writer from Meetings West Magazine who was interested in doing a write up on San Luis Obispo and who also wanted to feature a local restaurant, probably Cafe Roma. Cate Norton had also been talking with Meetings West and they seem receptive to doing a feature on San Luis Obispo. Lindsey has very recently had a contact with Vanity Fair Magazine, which would be exciting. Dave reported that the Visitors Center had been extremely busy providing the fulfillment to all of the recent requests for information. Even though the Chamber recently purchased new software to minimize labor costs, extra employees had to be called in to meet the fulfillment. 10. REPORT FROM VCB Jonni Biaginni provided the PCC with several "web-facts". The VCB has almost attained its goal for the year of web sessions - having had over 300,000 so far. Their alta vista links are much higher than our competition. 17% of the page views are of accommodations with Apple Farm having the highest number of click-throughs. The second most visited page on the VCB's website is the top 10 things to do followed by people looking for hiking information. The VCB tried a recent campaign to a younger demographic through away.com —the results were not as high as they had hoped. After attending a recent Travel Writers Conference, Jonni expects some good results with the Oregonian. The Travel Writers Conference wants Jonni to explore hosting its conference in 2005. There would be significant cost but very long term benefits potentially. Carrie Head reported about her recent media contacts and up coming press trips. She expects to entertain visitors from England and Australia soon. She has been busy with lots of editorial work and passed around a California Tour and Travel publication with some recent results. Carrie plans on producing an online newsletter for the media to compliment her press release efforts. 12. CHAIRPERSON'S REPORT Bob Griffin drew committee members' attention to our occupancy reports. Our summer numbers are not showing well. Unfortunately, there has been a 12% decline in our April results in the past three years. Average room rates are not going up. 13. EYES ON SLO None. 4-co PCC Meeting Minutes of June 17,2uW Page ATTACHMENT 1 14. LIAISON REPORTS None 15. STAFF REPORT Staff passed around a new Reservoir Canon map and answered questions about our current construction projects. 16. ADJOURNMENT The meeting was adjourned at 7:30 p.m. to the next regular meeting of July 9, 2003. Submitted by: ao, Shelly Stanwyck Economic Development Manager �r ATTACHMENT 2 City of San Luis Obispo Tourism Marketing Plan 2003 Promotional Coordinating Committee: Bob Griffin, Chair Diane Hunt Roberts Louise Justice Debby Nicklas George Newland Cate Norton Wilda Rosene Shelly Stanwycl<, Staff _1p.] city of san Luis osispo .. ,gyp . .•� ,, ? � �' Ho .�. ,�- � n� ° ter` _ �_^, Y. � �� ,.. . a �A,♦ .�; L�'Ik-yaa ° N.A4,..',�;r 'y, A °k;: .x 31,1♦ ��� �.. �' $yA.+f,�';� w � �,b 4 _,_.^ "1. fiy°�J•�ti' { �.�'°„S` j>ry�. °a x �S rf.. .�'.��,�y�t, "a.')Y��� s� .ti: , p?malty/ , t47r_s� �1� '' � it't•� � 9r'�' �r v-F'ry vii ,!„' L .. + v 1 �,,y-�i J � y ....�;s�""^ �.s �°rt 1�y •7 { �VF. � .r,r^'�- 'ill � � f�/ !a•��l 7� t�ft,k{uaY��..�,i f�;r 4� i t ;�,r �.F°'+'.4��r1������ 1.p! f��.�� i y.� j•{µ' �, ' � �� �;• �Y4 \ p'`-:'-G \��.Y Ya3•l, ':(' 7'�^f..`1 ° N {-�i�A t".;, *'. tW,' ' S .�Yj�,,> 6 f h�rA.•t -,i t l r, aiT4 r T IIIII afyl"V r J.. I i' �c11.'•+�r'r rA �” ` •. � ,A' t, any r• M1 _ a� •1 Growd J 3 2003 ❑ ATTACHMENT 2 Executive Summary ................................................................... 1 Current Market Conditions ........................................................ 2 City of San Luis Obispo Community Promotions Program............... 2 ILocal Trends............................................................................ 3 Competitive Assessment............................................................ 4 Industry Trends ....................................................................... 7 Market Analysis ........................................................................ 8 Strengths ................................................................:.............. 8 Weaknesses ............................................................................. 8 Opportunities .......................................................................... 9 Threats ................................................................................... 9 Market Segmentation................................................................ 10 MarketPositioning.................................................................... 11 MarketingObjectives................................................................. 12 Marketing Strategy ................................................................... 13 �r> w F gyp..r.�,m.•1•V�;>.. .. 40 tie '• - ,. o _ .M ur 20030 ATTACHMENT 2 1L n response to declining transient occupancy tax revenues,increased competition from neighboring communities, and a major Council Goal for 2003-05 focused on tourism,the City's Promotional Coordinating Committee embarked on the endeavor of updating its Marketing Plan for Community Promotions. The City of San Luis Obispo Tourism Market- ing Plan 2003 outlines major objectives and goals to improve the City's market position. The primary target visitors to San Luis Obispo should be a sophisticated well educated; travel minded,couple,looking for a trip that will afford them the opportunity to experi- ence a variety of activities and.feel refreshed upon completion of their visit. 1. Increase transient occupancy and sales tax. 2. Develop and implement a brand image.. 3. Enhance and use as a fulfillment tool the visitslo.com website. 4. Develop and maintain strategic alliances. 5. Collect more data about the City's market position. 6. Establish accountability standards for the community promotions F1 1� contractors. The objectives in this Plan will require significant work on the part of members of the PCC,the City's Community Promotions Contractors and members of the local tourism community. The results of this work will not only improve the City's fiscal health but Q will demonstrate why the business people of San Luis Obispo are part of the"SLO LIFE". CEJ . e 'I City of Swi Luis Obispo, _ Plan 2003 ■ ATTACHMENT 2 City of San Luis Obispo Community Promotions Program History & Goals In June 1970, the San Luis Obispo City In 1964,the City passed its first TOT ordinance, Council established the seven-member obligating City hotels and motels to collect this Promotional Coordinating Committee (PCC) tax at the then rate of 5%. Increases to the • �.� as a standing City committee. TOT occurred in 1976,raising TOT to 6%; in 1991 to 9%; and finally, to the current TOT rate of 10%in 1993. The national average for TOT is • �� 12%. The City's TOT is unlikely to change in 1.Improve the quality of life the near-term,in an era post California voter available to all residents of and approved Prop 218,which would require any visitors to San Luis Obispo modifications to the City's TOT to be taken to a vote.of all City residents. 2. w Promote,m a manner consistent During the 1990's,the importance and predict- with long-range community goals, ability of TOT as a revenue stream became the development of San Luis Obispo evident to the City. At that time, the TOT rates as a regional and tourist center. increased on average 10%per year. The growth came without significant development;with the number of hotel/motel properties and rooms, The PCC is responsible for a comprehensive increasing slightly. Beginning with the national promotional program that includes oversee- economic downturn in 2001,revenue growth in ing the development of an advertising and TOT became less predictable. Like many munid- public relations campaign as welt as palities,2001-02 was an"off year"for TOT in promotional publications,including maps San Luis Obispo. 2002.03 has had its ups and and informational brochures. The PCC also downs. makes recommendations to Council regard- ing grants to organizations that encourage Because TOT merely provides the amount of tax and provide for the.economic, cultural, and collected,not occupancy rates,TOT alone is not recreational improvement of San Luis a good indicator of current market trends. In Obispo under the Cultural Activities reviewing Smith Travel Research Reports,for the Program. City,for several years,we find the trend to be toward lower occupancy rates and higher room Staff assistance is provided by Administra- rates. As a mid-priced market,there has been a tion from the Economic Development tolerance for rate increases. Declines in occu- .� Manager and Principal Administrative panty have been offset by rate increases. This Analyst. trend, however,is not sustainable. ® Transient Occupancy Tax (� Promotions The City's community promotions program focuses on promoting the City as a tourist destination. By doing so,the program creates a strong and reliable tourism component to the City's economic base. The City's third largest revenue source to its General Fund is Transient Occupancy Tax (TOT). 4-[ [ z Obispo, 2003 -- A l Local Trends City Transient Occupancy Tax The City of San Luis Obispo experienced consistent growth in.its TOT for many years; it During the same year,the San Luis Obispo is just recently that TOT for the City has fallen County VCB distributed travel guides to 35,000 0 V==4 ofr• potential visitors,of which an estimated 10,850 Although TOT revenues are varying signifi- (31%)' stayed overnight in San Luis Obispo. O V==4 cantly from month to month,some months In 2000,the City completed an Advertising are up others are off,in looking at Smith Conversion Study that profiled the.type of Travel Research Reports,one trend appears visitor to San Luis Obispo. According to clear. Occupancy,in particular midweek Campbell Research,the"typical visitor"to San occupancy,is down. TOT revenues have been Luis Obispo is a well-educated adult couple that assisted in part by increased room rates. travels by car and makes at least three leisure. Revenue declines from mostproperties seem trips a year. They stay for a day or a weekend to 0 directly attributable to midweek business shop and sightsee in San.Luis Obispo and other 17 travel having substantially declined. The cities, spending about$400 to $500. About half market is now sharing its tolerance for rate consider San Luis Obispo their primary destina- increases so TOT revenues are unpredictable at tion. this time. Summer is the peak time for out of state visits Visitor.Information and Conversion to San Luis Obispo while fall is for in state Studies visits. The LA Times was one of the strongest sources for conversion. The City of San Luis Obispo is a popular place. Almost 66,000 visitors sought information from In summarizing respondents'description of their the San Luis Obispo Chamber of Commerce most recent trip to San Luis Obispo-48%listed Visitors Center from March 2002 until February it as their primary destination,while 27%p 2003. In 2002,working with the City's Adver- characterized it as a place to visit as they travel tising Contractor,Barnett, Cox and Associates, through, and another 25%as one of"a few key the Visitors Center provided 7,899 fulfillment stops." packets to potential visitors. I Per the 1002 SLO Conary VCB Advert sing Conversion Study. Smith Travel Monthly Occupancy Rate City of San Luis Obispo 2001-2003 90 80 70 60 so 02001 02002 40 02003 30 20 io 0 i3nuaW Febnary Ma Apd May June JW' Augu Sepmmber October November December 44 3 LCityofSan Luis Obispo, 2003 ATTACHMENT 2 (� CMPeti'ti've Assessment The City of San Luis Obispo faces competition locally aswell as within the greater Central Coast Region(specifically Santa Barbara and the Monterey Bay Area). Locally,Paso Robles, o Pismo Beach,and the North Coast compete with the City for visitors. Each area has a differ- ent approach to tourist promotions that will be discussed in detail below. San Paso Santa onterey Obispo Beach Robles Barbara Bay Area VM Number of 33 31 hotels 17 165 225 Properties 3 RV Parks ® Number of 1,861 1,394 Rooms 748 9,449 12,000 Rooms 725 RV Spaces Total Budget $378,800 $499,699 $215,000 $1,577,266 $3;000,000 Funding from $378,800 $450,000 $204,000 $1,339,866 $541,129 city Funding from County N/A N/A N/A $106,000 $1,700;000 Membership 0 0 $5,000 $65,000 $200,790 Dues Mon Bay Area The Monterey Bay Conference and Visitors The Monterey VCB has 14 staff members, Bureau(Monterey VCB) contracts with the and they are considered full-service. They County of Monterey, the City of Monterey, provide convention services,sales services; and other area municipalities. They have cultural tourism and have a public rela- three contracts for funding from the tions and communities,promotion depart- municipalities,including discretionary and ment. The web design work of the non-discretionary contracts. They are a Monterey VCB is done internally,with an membership-based organization with outside portal-style web provider. The private source revenue in the form of dues. Public Relations and Communication Department is responsible for updating The City of Monterey owns the Visitors their website. Center building. The City funds the Monterey VCB to operate the Visitor Center. Other City's in turn pay the City of Monterey to get theirinformation at the Visitor's Center. -f 3 4 City of San Luis Obispo, California- irisin Marketing Plan 2003 ■ ATTACH MT 2 Citv of Santa : , The Santa Barbara Conference&Visitors The SBCVB&FC has a staff of 12. They are a Bureau and Film Commission (SBCVB&FC), membership-based organization with about is an independent,non-profit corporation 200 hospitality partners from the private comprised of marketing professionals. They sector. Their Board of directors is comprised have a contract with the City of Santa of 16 volunteer professionals from their Barbara($1,339,866) and a contract with membership. They also serve as the Film the County of Santa Barbara($106,400)to Commission for Santa Barbara County. provide external marketing including • V=04 advertising,public relations,lead genera- The SBCVB&FC focuses on marketing that tion,web marketing,and so forth. promotes tourism(bath corporate and leisure). They are responsible for branding The Santa Barbara Visitors Center is run by and marketing the community to potential the Santa Barbara Chamber of Commerce visitors (outside of the county). Once the with funding from the City of approxi- visitors arrive,they are serviced by the ® matety$60,000 per year. The Visitors Chamber via the Visitor's Center. The Film Center's main function is to answer ques- Commission is part of the CVB because its tions from visitors once they are in the City mission (to promote Santa Barbara County and to distribute brochures such as the as a destination for filming). Both bring County Visitors Guide, produced by the external dollars into the community and SBCVB&FC. are marketed with a unified message. They work with web designers to develop their 4001 visitor-friendly site that is consistent with ('� , our branding. All maintenance is performed in-house by the CVB. City of Paso Robles The City of Paso Robles began focusing on The Paso VCB provides a wide variety of tourism as a key industry in 1995. At that services in its promotional efforts. It time,the City and the Paso Robles Chamber maintains Visitors Centers in downtown of Commerce entered into a Services Agree- Paso Robles at their train station and at their ment whereby the Chamber would provide airport. They create and place ads as well as promotional services to the City through developing and maintaining a website. They the Paso Robles Visitors &Conference partner regionally,with the San Luis Obispo Bureau(Paso VCB). County VCB on cooperative advertising and 4mvJsupport of region marketing efforts. Presently,the City of Paso Robles has a three-year contract with the Paso Robles They engage in extensive public relations Chamber of Commerce for promotions releasing on average a press release per funding the Chamber in 2003 at the base week describing events and happenings in amount of$159,000,in 2004 at the base and around Paso Robles. They also maintain a amount of$213,700 and in 2005 at the base calendar of events. The staff focuses on amount of$218,300. Depending upon the individualized visits with travel writers and amount of TOT collected by the City, the their personal touch has resulted in recent Paso VCB receives a bonus (or a percent of articles in Forbes and Via Magazines. They the TOT). The Paso VCB has a Director, also are working closely with the Central Director's Assistant and a Full-Time Equiva- Coast Ag Tourism Council and the City's lent (46 hours of Visitors Center Work). Barney Schwartz Park,providingstaff support and coordination. The Paso Chamber's President/CEO and Board of Directors help to provide guidance to the Paso VCB. 4,14 - - 5 �itv of San Luis Obispo, California- rism Marketina Plan 2003 ATTACHMENT Cly �1City i i Bea ® The Pismo Beach Visitors and Conference They presently contract with Tom Jones • Bureau(Pismo Beach VCB)is a department Advertising for services including web- of the City of Pismo Beach. The employees design,commercials,etc. When possible work for the City and the City funds the they do basic graphic work themselves. P� promotional efforts its staff puts forth. They update their website and maintain it Because the Pismo Beach VCB is a City "in-house"spending 5-10 hours per week Department,all local properties are"mem- on the website.. bers"as the program is not membership- based. The Pismo Beach VCB has a Board of Directors who determines the specific o Through a contract with the.Pismo Beach allocations of their budget. Their annual Chamber of Commerce,for$77,000 per year, budget for 2003 is$450,000. They pres- the City maintains a Visitors Center in ently do not.have a downtown Pismo Beach. Funding of the relationship with the Countywide VCB Visitors Center includes an 800-phone having opted to do only direct advertising, number for travel guide requests as well as and no cooperative/regional work. The postage costs for fulfillment. The building Pismo that the Visitors Center is presently in is Beach VCB sets their target market as the City driving market from as far away as five to owned,the City provides it at no charge seven hours. To capture this market, they and also pays all utility costs. The actively advertise in the San Francisco and Chamber pays for maintenance and use. Sacramento Markets. Pismo Beach VCB does what they refer to as"maintenance The City employs two people to manage the marketing"in Los Angeles and the Central Pismo Beach VCB. They are responsible for Valley;they feel that people in the Central all public relations efforts. They produce Valley know Pismo Beach better than an average of three to four press releases residents do as it's often.referred to as each month. They do many story pitches "Fresno West." each month to travel writers. When a. travel writer comes to town,they"wine and dine"them by taking them to dinner, driving them on the beach,coordinating lodging,etc. They also coordinate and/or participate in familiarization tours n , (Fam Tours). They participate in many vs trade shows and group events and also are members of travel industry organizations including TIA and NTA. A recent San Luis Chamber/San Luis County VCB Golf Fam Trip was very beneficial to Pismo Beach. �F-rS �_ • . .. 2003 ATTACHMENT 2 G� Industry Trends In reviewing the Travel Industry Association We Have the Ingredients for a of Americans(TIA)top travel trends for. Successful Leisure Travel Market 2002,there are several that should be of concern to the City and several that should Leisure travel is predicted to be the strongest be capitalized on by the City. travel segment. Leisure travel includes ® visiting friends and family as well as visiting heritage sites and parks. Interestingly,many Business Travel Has leisure travel decisions are made based on tax Fundamentally Changed refunds and marketing in April can prove Business travel may never return to the lucrative. Consumers expect to be able to level that it was in 2000. The manner in access online trip planning and purchases. which business communications are accom- This trend is increasing exponentially with plished have changed. Technological technology-use dominating travel-marketing advances have enabled business travelers to trends. remain at home more frequently. The costs from a fiscal and physical standpoint of Vacation destinations sought include beaches traveling exceed the benefits. Business as well as mountains and historical sites. travel is expected to rebuild somewhat,but not to exceed 2000 levels for at least five There is a niche:market potential for San Luis years,if then. Partnerships with local Obispo. We offer adventure,"heritage"and visitors organizations and properties are nature based opportunities as well as being suggested so that vital information can be very close to wonderful beaches. shared. T6p Leisure Activities Shopping 33% Second Best Presents an Oppor- outdoor (camping, hiking, biking) 14% tunity for Smaller Conferences Historical sites/museums 14% Although TLA predicts that conventions Beaches 10%° and meetings will be very challenging— Cultural Events%Festivals 10% many conventions and meetings are moving National/State Parks 10% to so-called second tier cities. San Luis Obispo,because of its convenient location to Los Angeles and San Francisco should pursue this market We would however need to provide some of the following: -Flexible-use spaces -Easy loading and unloading of trade show materials -Parking -Pedestrian friendly,within walking distance-restaurants,shops and attractions -Superb customer service at the facilities used -Security and access must be adequately addressed 7'. ',CiEv of San Luis Obispo, 2003 ■ ATTACHMENT 2 Strengths Weaknesses San Luis Obispo's strengths vary from the In developing the objectives for this marketing tangible, such as our location and scenic plan,an.analysis of the City's weaknesses was beauty,to the intangible,such as the friendli- conducted to better position the City. Many of ness of the local residents. the City s visitor weaknesses can be addressed. Location No Focused Brand Image San Luis Obispo is a"gas tank"away from The City of San Luis Obispo lacks a focused Californias major population centers. We are image or brand that is presented to potential centrally located between Los Angeles and San visitors. There appears to be a perceived lack Francisco. We are also an easy drive over the of distinction between the City of San Luis hills for residents of the San Joaquin Valley Obispo and the County of San Luis Obispo. seeking coastal access. San Luis Obispo is the Many people when visiting the County,seem geographic,cultural,educational,and employ- to refer to the entire region as San Luis ment center of San Luis Obispo County. San Obispo. As a brand,San Luis Obispo may be Luis Obispo's location gives it the ability to the generic name,like Kleenex,for the attract visitors from diverse markets seeking various visitor activities offered throughout convenient-access to countywide attractions as the County. well as the City itself. No Major Attractions Downtown There are no major attractions,such as Downtown San Luis Obispo has a unique mix of Disneyland or an Aquarium,in San Luis historic buildings,new lifestyle centers,long- Obispo,though for some this may be a time local retailers,and national chains. It's strength. pedestrian friendly nature and mix of shopping and entertainment opportunities result in a Limited Convention Facilities popular destination for visitors who seek presently,we lack adequate convention something that is unique. facilities, for large meetings. Because of our (`�✓) centralized location,we may be missing out l The $LO LIFE on potential meetings from diverse groups ^Y; The residents of San Luis Obispo are friendly who could"meet in the middle t and helpful to visitors and residents alike. Visitors often comment on how welcome they Limited Funds feel in our City. San Luis Obispo is a safe As compared to Monterey and Santa Barbara, community that presents many family oriented the City's funds for marketing itself as a activities such as the world famous Farmer's visitor location are limited. Market. Value Perceptions There still seems to be.a perennial perception San Luis Obispo offers value to visitors. Not that San Luis Obispo is unsophisticated, a only are San Luis Obispo's lodging properties "cow town"with little to offer in the way of priced more competitively than Monterey or culture or that the City is too much of a Santa Barbara's but they offer good value to "college town" Santa Barbara and Monterey their customers. The same can be said about have greater national and international the dining and shopping opportunities in the recognition. City. Limited Air Transportation Air transportation to San Luis Obispo is presently limited by the number of flights to the City and the areas of originations. 4^ ' 8 citviof San Luis,Obisvo, California risrn Marketing Plan 2003 ATTACHMENT 2 Opportunities Threats Upon analysis,there are a series of opportuni- The following represent possible threats to the ties before the City,which if capitalized on, recovery and improvement of the City's could result in increased TOT. community promotion efforts: 1. Convert casual day-trip travelers to 1. Continued blurring of the brand distinc- overnight stays. Do so by marketing that tion between San Luis Obispo County and there is more to do in San Luis Obispo San Luis Obispo City. � than a visitor can do in one day. 2.Increased promotional efforts by com- 2. Encourage visitors to stay one more petitors. night:. 3.A significantly stronger economy which 3. Encourage visitors to come again. results in decreased attraction to"gas tank"away locations. 4.Leverage visitors to Santa Barbara and. Monterey into feeling compelled to visit 4.A continued weak economy affecting San Luis Obispo as well.. the disposable income of potential visi- tors. 5. Target residents of Arizona,who can take advantage of air service presented provided by America West direct from Phoenix to visit. 6.Maintain and increase strategic alli- ances with other groups. Potential continuing and new strategic alliances include the following groups: Airlines KCRX Amtrak Local Arts Community Media Cal Poly Mozart Cal Poly Alumni PAC Cuesta Restaurants Downtown Association Retailers Hearst Castle Symphony Wineries Hotels/Motels � i8 9 Ciry of San Luis Obispo, 2003 ATTACHMENT 2 In defining both the typical visitor to San Luis Obispo and the intended visitor to San Luis Obispo a series of questions were answered. The two most critical provide insight into our ideal visitor. Who comes to San Luis Obispo? Visitors to San Luis Obispo are a diverse group. The following are included in the group: O Affluent Travelers Former residents Californians Hearst Castle Visitors Cal Poly parents/alumni/friends Outdoor enthusiasts Conference Attendees Potential residents Couples without children Retirees Cultural events attendees Wine enthusiasts Educated/Intellectuals Work related visitors Friends and Family of residents Youth Sports Teams Who should come to San Luis Obispo? The PCC identified the following groups of visitors where growth opportunities both now and in the future exist: Who Shoud Wit SLO? Arizona residents Film companies Bay Area residents Outdoor enthusiasts P ^ Bus groups San Joaquin Valley residents J Conference attendees Special interest groups Families Visitors to Monterey/Santa Barbara n� Film companies V./ Our Primary Target The primary target visitors for San Luis Obispo should be a sophisticated,well educated,value minded couple who is loolcing for a trip that will afford them the opportunity to experience a variety of activities and feel refreshed upon completion in the San Luis Obispo geographic region. ^ � 1 10 City of San,Luis • . 2003 ATTACHMENT 2 1. Develop A Brand 3. The City Should Continue with a A consistent and focused message should be Diversified Promotions Effort used in all media for the City. There should The City should continue to contract with not be confusion regarding the City as several local organizations and an advertising compared to the County. A Slogan or tagline contractor to fulfill its promotional efforts. and possibly an image for the City should be This diversified approach provides the City with developed by the Ad Contractor who should the opportunity to leverage.its limited funds also develop a campaign with the brand through unique visitors services,regional Promise. All other contractors will imple- marketing efforts and access to specialists in ment the campaign and"brand"as created the local tourism industry,in coordination by the Ad Contractor. with an advertising contractor dedicated to promoting the City. The four contracts will ^ 2. San Luis Obispo is the Center cover the following areas: advertising,public Uof a Visit to San Luis Obispo relations,visitors services and regional market- County ing. As the Center of San Luis Obispo County, the City has a lot to offer visitors as a conve- 4. Alliances and Support of Major �..,� nient location to stay as well as an exciting Events location to visit. Emphasis on the conve- The City should continue to build upon its nience of our location,its historical connec- existing alliances with other organizations r tions to the Mission (stay where it.started), interested in increasing visitors to the region. J as well as having access to all sorts of The City should continue to support major activities from golf to wine tasting to the events that result in increased visitors and an outdoors should be our focus. enhancement of the image of the City as a place to participate.in many diverse and Research should be undertaken regarding the interesting events, "there's something for potential for large conferences. If there is a everyone" ^� market for large conferences,continued research regarding existing and possibly 5. Future Goals for the Marketing future conference space should be con- plan Should be Explored Uducted. The Marketing Plan should not be considered Research should be undertaken regarding the astatic document. Rather it should be.relied need for and the possibility of a property upon for direction but reviewed by the PCC that is a spa or"destination" bi-annually and updated if necessary. Poten- tial goals for the plan should be explored and Community partnerships should be main- added if relevant. Currently identified tained and enhanced. Particular focus potential goals include: should be on Wineries,the Arts Community, Touch Screen Kiosks the Downtown Association, Cal Poly,Agricul- More familiarization tours tural Tourism and Major Events. Media Kits Improved Visitor Signage A Live Spot by the Today Show Giveaways to Visitors New Convention Center Staff for Special Events Regional Jets at the Airport Spa Resort PGA Tour Event Improved golf and tennis facilities Money for websites City Marketing Department Improved ground transportation!' ` Xr _ 13 _ity o an Luis Obispo, 2003 1. Increase TOT and Sales Tax 3. Enhance and Use as a The need to increase TOT and Sales Tax Fulfillment Tool the visitslo.com revenues is critically important to the contin- Website ued fiscal health of the City. The website should serve as a fulfillment piece that is equal to, or better than, its regional ThreeI different approachescompetition. Website search engine hits TOT and Sales are should be optimized. Data collection from 1. Increase the number of repeat visitors visitors to the website should occur, to further 2. Encourage visitors to extend their stays define the profile of the average visitor and 3. Convert day-trippers to overnight visitors refine the marketing campaign. The website should have aesthetic value and reinforce the brand image. The website should have infor- • mation that allows viewers to make informed B Develop and Implement a decisions regarding visiting San Luis Obispo. ` Brand (� Image 4. Develop and Maintain Strategic n , An acknowledged weakness, the City lacks a Alliances brand image for tourist promotions. The Strategic alliances should be looked for and • �� need to develop and implement a brand, be it established in an effort to share in non-cash an image, tagline or other consistent icon assets and grow exposure. that symbolizes San Luis Obispo as a place to visit, has emerged as one of the primary objectives of this Pian. 5. Collect More Data about the Members of the PCC and current contractors, City's Market Position have identified words that could bring focus More research on marketing the City should to the "reason people come to San Luis occur. Information about visitors should be Obispo", a brand promise if you will. The collected from the website and strategic following (which is too verbose for a slogan alliance partners to determine how the City is or brand) is the filter through which all perceived in comparison to its competitors. advertising and marketing plans should be The electronic database of new and repeat • viewed: visitors should be developed further. To sophisticated, value minded visitors and travelers (primarily from California, but 6. Establish Accountability not necessarily so), San Luis Obispo will be Standards for Contractors the hub, center,focal point, heart, univer- Key metrics should be established and measur- sal starting point, soul, base of their ability of work should occur. Once bench- vacation experience that always provides marks are established performance can be small town charm (defined as the SLO LIFE, more accurately evaluated. friendly people, refreshing/rejuvenating, happy, less stress and safe). �7 -a � 12 2003 � G�ltl ppq�yWpWp�U� II [L T ee central themes emerged for positioning the City in its market. The uniqueness of the City combined with its central location is key to positioning the City regionally. The value of a visit to the City is key to positioning the City alongside Monterey/Carmel and Santa Barbara. 1. The "SLO LIFE"should be the center of any visit. San Luis Obispo shares many amenities with surrounding cities such as golf,shopping, restaurants, coastal weather and proximity to major markets. But it is the unique"SLO LIFE"of friendly people,value pricing,Farmer's Market,and the Downtown,that make San Luis Obispo distinct. The City of San Luis Obispo should position itself as the i center of anyone's visit to the County. Visitors should be encouraged to make San Luis ce; Obispo their base for excursions to locations within the County and"stay here,play here, and play there" 2. The City is different from the County �1� The City should be positioned distinctly from the County of San Luis Obispo as a whole. The image management of the City should re-enforce to visitors the distinction and benefit to staying overnight in San Luis Obispo City as opposed other locations within the County. /G 3. The Value Priced Alternative The City should be positioned against Monterey/Carmel and Santa Barbara as the J simpler,value priced alternative. These efforts should focus on the fact San Luis Obispo has all that they have to offer but without the higher price tag. � .t I [Lee Vince-Recent air quality news ofint���st � RECEIVED - "hL 0 i 2003 -From: <lallen_apcd@co.slo.ca.us> - - •.- --- �LO CITY CLERK- To: <kachadjian@co.slo.ca.us>, <tomalley@co.slo.ca.us>, <sbianchi@co.slo.ca.us>, - - <jewan@slocity.org>, <Joe_Costello@oes.ca.gov>, <hovitt@co.slo.ca.us>, <wpeirce@thegdd.net>, <ppinard@co.slo.ca.us>, <mreiss266@aol.com>, <mryan@co.slo.ca.us>, <stevelieb@charter.net> Date: 6/30/03 6:10PM Subject: Recent air quality news of interest (Embedded image moved to file: pic04827.pcx) NEW REGULATIONS FOR STANDBY ENGINES In October, the California Air Resources Board will take action to reduce particulate matter emissions from stationary diesel engines. As part of its risk reduction program for diesel exhaust, this Air Toxic Control Measure(ATCM), scheduled to take effect in 2006, will require all new stationary diesel engines to be equipped with back-up control equipment (e.g., particulate filters) and set operating limitations for existing engines. Due to the high cost of control and remoteness of nuclear power plants, the ATCM will allow the District to exempt standby engines at PG&E's Diablo Canyon facility and seek alternative reductions. District staff is working with PG&E to develop a Memorandum of Agreement(MOA)that would establish a Diesel Risk Management Fund to reduce emissions from other engines in the region. The MOA and the ATCM rule revision will be brought to your Board for adoption later this year. APCD staff contact: David Dixon at 781-5756 or ddixon@co.slo.ca.us. ENVIRONMENTAL JUSTICE(EJ) POLICIES The California Environmental Protection Agency's EJ Advisory Committee will soon release a draft guidance document that provides implementation strategies for EJ initiatives at the state and local level. Formed in May 2002, the EJ Advisory Committee is a diverse group of stakeholders with representatives from the business/industry, local government, environmental, community groups and air districts. While many of the recommendations are reasonable and feasible, some are highly controversial and would substantially change the way we operate. For instance, one recommendation is the"Precautionary Principle,"which states that it is not necessary to wait for actual, measurable harm to occur to the community or the environment before implementing alternatives that can prevent or minimize the overall impacts. Some stakeholders believe the responsibility should be placed on developers or new industry to prove that no harm will result from their proposed project. If that determination cannot be made, a bond would be required to mitigate future impacts when discovered. In addition, the need for better evaluation of cumulative impacts is also addressed, with a strong emphasis on using those results for decision making, especially in EJ communities that are already impacted disproportionately. APCD staff contact: Larry Allen at 781-5920 or lallen@co.slo.ca.us AIR PERMITS FOR AGRICULTURE The California Legislature and Air Districts have until November 2004 to remove the air quality exemption and implement a regulatory program for agriculture sources statewide. If such programs are not in place, California could face federal sanctions and loss of transportation funds. SB 700 (Florez, D-Shafter) is a comprehensive bill that, if passed, would remove those exemptions. As currently written this bill would, in part: Require Districts to include precursor and fugitive (dust)emissions Lee Price-Recent air quality news of intim=-st Page 2' when determining if an Ag operation is a major source(>100 tons/year of pollution); Require each District, by July 2004, to adopt a rule requiring permits for all major Ag sources by January 2005; and, Require each District, by January 2005, to adopt and enforce Best Management.Practices (BMPs) for all Ag sources, regardless of size. The requirement for adopting and enforcing BMPs presents several implementation challenges for Districts, including development of acceptable measures, lack of staff resources for oversight, and cost recovery. CAPCOA is working with the bill authors and industry representatives to modify the language related to implementation issues. APCD staff contact: David Dixon at 781-5756 or ddixon@co.slo.ca.us. LOCAL COMPANY EMBRACES STATE OF THE ART CONTROL TECHNOLOGY The APCD issued Plains Exploration an Authority to Construct for a gas turbine cogeneration unit that will produce 1.4 megawatts of electricity and 950 barrels per day of steam for use at their Price Canyon oil field. The gas turbine will be equipped with Xonon catalytic combustion technology and will have a NOx emission rate of only 3 ppm. For comparison, a similar turbine operating at Cal Poly has an emission rate nearly 10 times that level. This very low NOx emission rate is usually only achieved with complex control equipment on the smokestack that typically uses ammonia or other hazardous compounds to reduce emissions. The Xonon burner system has a catalyst in the combustion chamber and operates at a low temperature, greatly reducing the formation of thermal NOx. Since heat will be recovered from the generator exhaust to produce steam, this installation is expected to have an overall efficiency of 80%. This state of the art technology is an excellent example of pollution prevention.There are currently only two other commercial installations of this technology in the United States, although more are expected in the near future. APCD staff contact: Dean Carlson at 781-4697 or dgcarlson@co.slo.ca.us. CLEAN AIR ART CONTEST A GREAT SUCCESS The APCD is pleased to announce the winners of the Second Annual Clean Air Art Contest held during the month of May. It was a great success with over 150 fantastic art pieces submitted to the District from children and adults countywide. Our judges had the difficult task of looking through all of the entries and selecting only one Child and one Adult Grand Prize Winner. The colorful creation titled"Clean Air is About Not Polluting"won six-year old Lena Reigelhuth the Kid's Grand Prize, a girl's BMX bike donated by Art's Cyclery. Thomas Humphrey's pastel drawing of a family enjoying the blue skies near Mono Rock secured him the adult award of a BOB bicycle trailer donated by BOB Trailers. Go to the APCD website http://www.slocleanair.org/community/CAM03.asp to view the winning art pieces and other great entries. In addition to the two grand prize winners, ten more eye-catching pieces will be selected for inclusion in the 2004 Clean Air Art Calendar that will be distributed to businesses, nonprofit organizations; schools and residents throughout the county before year's end. APCD staff contact: Aeron Arlin Genet at 781-5998 or aarlingenet@co.slo.ca.us. CC: <aadingenet apcd@co.slo.ca.us>, <abugrov@co.slo.ca.us>, <amutziger apcd@co.slo.ca.us>, <bpresley@co.slo.ca.us>, <baunger apcd@co.slo.ca.us>, -- - - Pa e3` Lee Price- Recent air quality news of int--est __� !_: <ddixon_apcd@co.slo.ca.us>, <dgcarlson_apcd@co.slo.ca.us>, <ddrexler@co.slo.ca.us>, <gwilley_apcd@co.slo.ca.us>, <htomley_apcd@co.slo.ca.us>, <jcourtney_apcd@co.slo.ca.us>, <jcraig_apcd@co.slo.ca.us>, <kbrooks_apcd@co.slo.ca.us>, <kjohnson_apcd@co.slo.ca.us>, <Igardner_apcd@co.slo.ca.us>, <mbolyanatz_apcd@co.slo.ca.us>, <melliott_apcd@co.slo.ca.us>, <mguise@co.slo.ca.us>, <pallen_apcd@co.slo.ca.us>, <preitz_apcd@co.slo.ca.us>, <rheitzman@co.slo.ca.us>, <slee@co.slo.ca.us>, <scoleman@co.slo.ca.us>, <tfuhs_apcd@co.slo.ca.us> COUNCIL coD DIR RED FILE g'CAO ,L'FIN DIR -- M NG AGENDA e(ACAO 7FIRE CHIEF � 0 ITEM ATTORNEY g POLICE pW DIR CHF DA Ja-CLERK/ORIG ❑J]laPT HEADS ZUTC DIR IL DIR ZHR DIR