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HomeMy WebLinkAbout09/04/2007, C11 - TOURISM MARKETING PLAN 2007-08 M�� council acEnaa aEpont 'a'N-� cl CITY OF SAN LUIS OBISPO FROM: Shelly Stanwyck, Assistant CAO Prepared By: Brigitte Elke, Principal Administrative Analyst SUBJECT: TOURISM MARKETING PLAN 2007-08 CAO RECOMMENDATION As recommended by the Promotional Coordinating Committee (PCC) review and approve the updated City of San Luis Obispo Tourism Marketing Plan for 2007-08. DISCUSSION Background Based on the "Tourism Promotion Effectiveness" study commissioned by the City and conducted by Campbell Research in November of 2001, the PCC, in collaboration with City staff, developed its first Tourism Marketing Plan in 2003. The plan addressed all aspects of traditional marketing efforts and was the guiding tool for the City's contracts for tourism promotion under the Community Promotions Program for advertising, public relations and regional marketing. In the beginning of 2007, it became apparent that an update of the marketing plan was needed. Since the first plan was established the target audience and overall tourism tendencies had remained much the same, but the way consumers booked their stays, the activities they sought at their destinations, as well as the communication channels to reach them, had changed dramatically. In order to maintain a meaningful tool for all parties involved in the City's marketing efforts and its community promotions program, the PCC determined that the plan needed to be presented in a more dynamic format to address future trends as they arose. A more dynamic document also allows the City's Community Promotions to dynamically respond to changes in tourism and travel, local and statewide tourism competition, a growing local lodging inventory, and new leisure and activities offerings. Plan Development In January 2007, the PCC met for its annual retreat in San Luis Obispo to discuss the update of the Tourism Marketing plan and the changes that needed to be addressed. The retreat was facilitated by Nash Consulting and yielded a"strength, weakness, opportunities, and threats" analysis (SWOT) that guided the PCC's Marketing Subcommittee through the update of the plan. In order to encompass the full spectrum of influences, the Marketing Subcommittee also analyzed political, economical, social, and technological influences (PEST analysis) on tourism within the Central Coast and San Luis Obispo itself. The PCC's Marketing Subcommittee started its work on the update with the definition of a mission statement for tourism to guide the new approach to community promotions: "The City of San Luis Obispo's tourism promotion mission is to enrich the quality of life and to improve the social, cultural, and economic aspects of San Luis Obispo by generating travel, vacation stays and visits to San Luis Obispo as the center and premier travel destination of the Central Coast." C, Tourism Marketing Plan 2007-08 Page 2 It also defined the major objectives for the promotional efforts as: 1. Promote the City of San Luis Obispo as a travel destination for stays of two days and longer; 2. Attract visitors to stay in the City of San Luis Obispo as the center of the County; 3. Capitalize from the unique cultural offerings to capture new visitors and entice return visits; 4. Develop an image to build name recognition and increase repeat visitor. The Tourism Marketing Plan outlines the reasoning behind selecting these objectives and the strategies that will be implemented to meet them. Regional Competition The committee then took a close look at the region to define the competitive field facing the City for tourism money. The tremendous growth of lodging inventory within the county and the increased promotion for the wine region in the north county have influenced the marketing strategy and changed the positioning for San Luis Obispo. While the target audience remains the same pertaining to its demographics, the current strategy will incorporate messages to travelers interested in cultural events, culinary trips, and outdoor activities. New Marketing Efforts The promotion and advertising objectives also concentrate on the trend for online, one-stop booking of travel arrangements by guiding all advertising traffic to the City's tourism website at www.visitsio.com. The actual marketing strategy will concentrate on creating an image alongside the tourism logo "San Luis Obispo — Experience the SLO Life" created a few years back. It will position San Luis Obispo as the center of any visit to the county and largely promote the tremendous cultural and culinary offering San Luis Obispo showcases. Numbers from the latest Economic Impact study of America's Nonprofit Arts and Culture Industry found that travelers who include art and culture events in their trips differ significantly from other domestic travels by spending more money, staying more likely in hotels and travel a longer period of time. The City as the home of the Performing Art Center, the San Luis Obispo Symphony, the Mozart Festival, the International Film Festival, the Art Center's Plein Air Festival, ArtObispo's "Art after Dark" and Open Studio tour, and thus San Luis Obispo is perfectly position for promotion as the place to stay and enjoy art, music, wonderful food and great local wines. Use of the Marketing Plan The City's Community Promotion's Program currently administers four different tourism oriented contracts. These contracts prescribe the City's approach to advertising, public relations, regional marketing and tourism information through a visitors' center and tourism website. The Tourism Marketing Plan is the overarching document to guide these efforts and contracts thereby creating a unified message to promote San Luis Obispo as a tourism and travel destination. All contractors are required to utilize the document to determine, define and create their respective campaigns and messages. Promotional Coordinating Committee Thus far, the Tourism Marketing Plan for the City of San Luis Obispo has not been a dynamic document. It was developed in 2003 and has not been updated annually. The PCC has addressed the need to update the Marketing Plan on an ongoing basis by deciding to redirect the main focus of its Marketing Subcommittee to concentrate on this task. In January 2008, the.PCC will define the overall scope for the 2008-09 Tourism Marketing plan in its annual retreat and provide guidance to the subcommittee for the Tourism Marketing Plan 2007-08 Page 3 update. In addition to the plan update, the subcommittee will also redefine the contractors' work scopes to assure alignment with the annual marketing objectives and strategies. The subcommittee will complete the update between February and April to allow for approval by the PCC in May and Council in June, prior to the execution of the four Community Promotions contracts. Business Improvement District(BID) for Tourism Promotion The current Tourism Marketing plan does not take any of the current efforts for a Tourism Promotion BID into consideration. The San Luis Obispo Visitors and Conference Bureau is still working on a countywide district but is not ready for formation at this time. In the meantime, several San Luis Obispo hoteliers are working on forming a citywide BID for San Luis Obispo only. While the local initiative has picked up some momentum, staff had not received any information as to the overall support at the time this report was written and feels that modifying the Tourism Marketing Plan to address the formation of a Tourism Promotion BID is not warranted at this time. Should such a district, whether city or countywide, come to fruition, its influence on the City's tourism promotion efforts would be considered in future updates of the Tourism Marketing Plan. CONCURRENCES All Community Promotions contractors, Verdin Marketing Ink., the Chamber of Commerce, and the San Luis Obispo Visitors & Conference Bureau, have reviewed the Tourism Marketing Plan and concur with its objectives and strategies. FISCAL IMPACT There is no direct fiscal impact to the General Fund by approving the Tourism Marketing Plan. It is the guiding document for the City's promotional efforts under its Community Promotions Program. The amount budgeted for these efforts in the 2007-08 Finance Plan amount to $423,100. In addition the City supports promotional efforts of its cultural and art organizations through its Grants-in-Aid program under Cultural Activities. $100,000 is budgeted for the 2007-08 fiscal year and the grants were approved by Council on July 3, 2007. ALTERNATIVES Council could choose to recommend a different approach and/or other priorities for the Tourism Marketing efforts. Specific direction should be given to staff as to what changes are desired. ATTACH LENTS 1. 2007-08 Marketing Plan 2. 2003 Marketing Plan 3. Draft Minutes from PCC Meeting 8/8/07 ell's ATTACHMENT 1 City of San Luis Obispo S2N LUIS ■ ■ • BISPO VV//S to L 2007.08 Tourism Marketing Plan City of San Luis Obispo Tourism Marketing and Advertising �ir-y Aly Y `�nits ostspo Tourism Marketing Plan 2007-08 f11 ACHMEN I 1 Introduction This Marketing Plan contains certain information regarding the current and planned tourism marketing efforts for the City of San Luis Obispo. It has been provided to the recipient solely for the purpose of assisting with the implementation of this marketing plan in accordance with procedures established by the City of San Luis Obispo. This Marketing Plan has been prepared by the City of San Luis Obispo's Promotional Coordinating Committee on the basis of internally prepared information, as well as information from public sources, including trade and statistical sources commonly used in the industry. The City of San Luis Obispo makes no warranty or representation, express or implied, as to the accuracy or completeness of either the material contained herein or any other written or oral information provided by the City of San Luis Obispo to the recipient,and no liability shall attach thereto. Nothing contained in this Marketing Plan is, or should be relied on as, a promise or representation as to the future. There is no representation, warranty, or other assurance that any of the projections set forth herein will-be realized. Any questions regarding the City of San Luis Obispo's tourism marketing and promotional efforts should be directed to the following representatives named below. Ken Hampian Cate Norton Brigitte Elke CAO Promotional Coordinating Principal Administrative Analyst Committee Chair City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 Tel. 805 781-7151 Fax 805 781-7109 2 err&iniuis omspo Tourism Marketing Plan 2007-08 ATTACHMENT 1 The City of San Luis Obispo is a municipal corporation located on the Central Coast of California.To help keep the local lodging industry attractive and competitive the City of San Luis Obispo engages in tourism marketing in order to enrich the quality of life and to improve the social, cultural and economic aspects of the City of San Luis Obispo. Mission,%teat The City ofSan Luis Obispo's tourism promotion mission is to enricb the quality oflife and to improve the social, cu/trual, and economic aspects of San Luis Obispo by generating travel, vacation stays, and visits to San Luis Obispo as the center and premier travel destination of the Central Coast The research herein referenced, is based on a comparison and effectiveness study conducted in 2000, Travel Industry Association of America data from 2005 and updated competitive outlooks for the immediate region. It is assumed that the data from the comparison study is still accurate,however the competitive outlook is changing rapidly.The wine industry in the North of the County of San Luis Obispo is coming on strongly and provides the cities in that region a competitive edge. The o4ictAw of"nuAv&Wp&v ow 1. Promote the City of San Luis Obispo as a travel destination for stays of two days and longer, 2.Attract visitors to stay in the City of San Luis Obispo as the center of the County; 3.Capitalize from the unique cultural offerings to capture new visitors and entice return visits; 4. Develop an image to build name recognition and increase repeat visitors. This marketing plan outlines the reasoning behind selecting these objectives and the.strategies that will be implemented to meet them. 3 crtyof san Luis oR�spo Tourism Marketing Plan 2007-08 ATTACHMENT 1 �i san Table of COUAW& I. Situation Analysis ....................................................................... 5 Historyand Goals ....................................................................... 5 LocalTrends ............................................................................. 6 TransientOccupancy Tax.............................................................. 7 Market and Competitive Analysis ...................................................... 8 IndustryTrends .......................................................................... 11 II. PEST and SWOT Political,Economical, Social,Technological (PEST) ............................... 12 Strengths,Weaknesses, Opportunities, Threats (SWOT) ........................... 13 SWOTAction Plan .................................................................... 14 III. Marketing Objectives and Issues ....................................................... 15 Marketing Strategy ..................................................................... 17 MarketingMix .......................................................................... 18 IV. Marketing Research ..................................................................... 19 V. Marketing Organization ......................................... ....................... 20 VI. Financials,Budgets,and Forecasts ..................................................... 21 VII. Performance Monitoring ................................................................ 22 Appendix A-- 2003 :2003 Marketing Plan 4 C//- ;7 - ,City of Tourism Marketing Plan 2007-08 ATTACHMENT 1 san Luis oaispo I. Stuabon Analysis hfivmTand Goals The City's Transient Occupancy Tax (TOT) remains the third largest revenue. In June 1970, the San Luis Obispo City Council source to its general fund. established the seven-member Promotional Coordinating Committee (PCC) as a standing In 1964, the City passed its fust TOT City advisory body. ordinance, obligating the lodging industry to collect the then 5%tax on its behalf. Increases in the tax subsequently occurred in 1976 and PCC Goals 1991 and finally reached its 10% assessment in 1993. This rate is currently below the 1. Enhance the quality of life to all national rate of 12%. However, the City's residents and visitors to San Luis TOT is unlikely to change in an era post Obispo. California voter approval of Proposition 218. 2. Promote, in a manner consistent with Proposition 218 would require any long-range community goals,the modifications to the City's TOT to be taken development of San Luis Obispo as before the voters. the cultural and tourist center on the Central Coast. During the 1990s, the importance and 3. Promote San Luis Obispo as a travel predictability of TOT as a revenue stream destination to increase transient became evident to the City. At that time, the occupancy tax. collection increased on average 10% per year. The growth came without any significant promotional efforts. However, beginning with The PCC is responsible for a comprehensive the nationwide economic downturn in 2001, promotional program that includes oversight of the revenue growth in TOT became less development of advertising and public relations predicable, starting with a drastic down tum campaign as well as promotional publications, followed by a rollercoaster trend that was including maps and informational brochures. The difficult to forecast. It also became dear that PCC also makes recommendations to Council the TOT was a deceiving factor to estimate regarding grants to organizations that encourage tourism and travel stays. Increasing room rates and provide for cultural, recreational and economic often made up for the lack of actual room improvements for San Luis Obispo and its citizens occupancy. While the tax income was again under the Cultural Activities grants-inaid increasing in 2005 ever so slightly, the actual ppm. occupancy was still falling behind. Tmas;mr oi=puicy Ta The City's community promotions program focuses on promoting the City as a tourist destination for stays of two days plus. The program therefore builds the foundation for a strong and reliable tourism component to the City's economic base. 5 ell -� C �p • c�'of Tourism Marketin Plan 2007-08 A ACHMENT 1 `.sin luts omspo g Loral Tit& After experiencing many years of constant growth in In 2000, the City completed an Advertising TOT without much investment or tourism promotion, Conversion Study that profiled the type of revenues fell off sharply in 2001 and are slowly visitors to San Luis Obispo. According to recovering after several years of erratic up and down Campbell Research, the "typical visitor" to San turns Luis Obispo is a well-educated adult couple who travels by car and takes at least three leisure However, certain trends appear consistent: fps a year.They stay fora day or a weekend to shop and sightsee in San Luis Obispo and other Occupancy is tradtional lower during mid- cities in the County, spending about $400 to week and increases from 771umday through $500. About half consider San Luis Obispo as Sunday. their primary destination. Visits to San Luis Obispo continue to follow seasonal highs and lows witb a steep increase The 2006 Tourism Survey conducted by the during the summermonths. Chamber of Commerce found that 63% of the l The market now shares its tolerance for we visitors come from California, 18% from out of mcreases and revenues have become state and 13%from overseas. 72% stay between unpredictabla one and three nights. These visitors mainly travel as a party of two (53%) and visit for a VAUtorh bMatioa and Comnwiza Studies leisure trip (89%). They are middle aged and travel without children. 83% stay in hotels and 55% planned their trip through the internet. While numbers have fallen off, San Luis Obispo The following areas of interest attracted visitors continues to be a popular place. The City's most to San Luis Obispo: promotional efforts drove: 2M M -Relaxation 28% Walk-In to Visitor Center 53,033 52,419 -Small Town 24% Visits to VisitSLO.com 190,123 208,471 -Wine Tasting 24% Email Requests 2,650 1,950 -Shopping 23% Phone Requests 16,000 14,500 - Downtown 22% - Hearst Castle 12% - Family and Friends 12% During this period, the San Luis Obispo County - History 100/0 Visitors and Conference Bureau (SLOVCB) -CalPoly 90/0 distributed travel guides to 30,372 potential visitors, - Big 90/0 generating a potential of 9,415 overnight stays. This does not include visitors who visited the website for The survey participants suggested the following information and bookings. The SLOVCB's website improvements: generated 201,887 click-thrus to San Luis Obispo members, 15,232 of which went directly to the - increase parking inventory reservation pages. - increase trolley service to 7 days/week - keep restaurants open later 6 c c crty oGTourism Marketing Plan 2007-08 ATTACHMENT 1 san lws orrspo TOT and Room Occupancy TJnands: Room Occupamy2005-M 90.o 80.0 70.0 80.0 y pcmpmcy% 02005 40.0- 13 02007 30.0 20.0 10.0 IL jw"" Nadi A1q J* sw Nme w Month TOT 20052007 $500.000 $500,000 $40D.000 MmUdy Rmv $300.000 02005 02008 02007 $200.000 $100.000 $- , m ..... JW-" Mud may J* sepwnbw Nonn*W Mott01 7 C crtyof sAn Luis oatspo Tourism g Marketin Plan 2007-08 ATTACHMENT 1 en Marfit and 0ompeddw.9nal, wi The City of San Luis Obispo faces competition locally as well as within the greater Central Coast region (specifically Santa Barbara and the Monterey Bay Area). Locally, Paso Robles, Pismo Beach, and the North Coast compete with the City for visitors. Each area has a different approach to tourism promotion: San Luis Pismo Beach Paso Robles Santa Monterey Obispo Barbara Bay Area #of Properties 35 32 hotels 16 hotels 165 276 3 RV parks 1 RV Park 2 campgrounds #of Rooms 1,900 * 1,944 rooms 937 rooms** 9,449 12,728 725 RV spaces 166 RV spaces 335 camp spaces Total Budget $375,000 $473,000 $1.8 million $42 million Funding from $375,000 $473,000 $248,000 $1,485,000 $1,065,700 City Funding from $- $- $ - $106,000 $895,000 County Funding from $- $- $- $- $2 million BID Membership $- $- $ - $88,000 $200,000 Dues * 138 moan to be added in 2007 ** 191 Looms to be added in 2007 8 C J crty of Tourism Marketing Plan 2007-08 ATTACHMENT I san lues onispo g Man&myBoyArea Gtr WSwin Barbas The Monterey Bay Conference Visitors Bureau The Santa Barbara Conference and Visitors (Monterey VCB) contracts with the County of Bureau and Film commission (SBCVB and Monterey, the City of Monterey, and other area FC), is an independent, non-profit corporation municipalities. They have three contracts for comprised of marketing professionals.They have funding from the municipalities, including a contract with the City of Santa Barbara discretionary and non-discretionary contracts. They ($1,485,000) and a contract with the County of are a membership-based organization with private Santa Barbara ($106,000) to provide external source revenue in the form of membership dues. marketing including advertising, public relations, lead generation and web marketing. The City of Monterey owns the Visitors Center building. The City funds the Monterey VCB to The Santa Barbara Visitors Center is run by operate the Visitor Center. Other cities in tum pay the Santa Barbara Chamber of Commerce with the City of Monterey to display their information at funding from the City of approximately$60,000 the Visitors Center. The Monterey VCB has 14 per year. The Visitors Center's main function is staff members and they are considered a full-service to answer questions from visitors once they are in organization. They provide convention services, the city and to distribute brochures such as the sales services, cultural tourism information and County Visitors Guide. have a public relations and Community Promotion department. The web design work of the Monterey Tice SBCVB and FC has 12 staff members. VCB is done internally with an outside portal style They are a membership-based organization with web provider. The Public Relations and about 230 hospitality partners from the private Communication department is responsible for sector. Their Board of Directors is comprised of updating the website. 16 volunteer professionals from their In November 2006, the Monterey County VCB membership. They also serve as the Film established a countywide tourism improvement Commission for Santa Barbara County. district (TID). The district includes the County and eight cities. Beginning January 2007, the The SBCVB and FC focuses on marketing that lodging industry through the TID will collect $2 promotes tourism (both corporate and leisure). million while the public sector will continue to fund They are responsible for branding and the tourism promotion efforts with$1,960,700. marketing the community to potential visitors (outside of the county). Once the visitors arrive, they are serviced by the Chamber via the Visitors Center. The Film commission is part of the SBCVB because its mission is to promote Santa Barbara County as a destination for the film industry. Both components bring external dollars into the community and are marketed with a unified message. They work with web designers to develop their visitor-friendly site that is consistent with their branding. All web maintenance is performed in-house by the SBCVB. 9 C o n of omspo Tourism Marketing Plan 2007-08 ATTACHMENT I Ci4y of Paw Rooks City ofAmo Beach The City of Paso Robles began focusing on The Pismo Beach Visitors and Conference tourism as a key industry in 1995.At that time, the Bureau (Pismo Beach VCB) is a department of City and the Paso Robles Chamber of Commerce the City of Pismo Beach. The employees work entered into a services agreement whereby the for the City and the City funds the promotional Chamber would provide promotional services to the efforts. Because the Pismo Beach VCB is a city through the Paso Robles visitors and City department, all local properties are conference Bureau (Paso VCB). "members" as the program is not membership- based. Presently, the City of Paso Robles has a three-year Through a contract with the Pismo Beach contract with a one-year extension with the Paso Chamber of Commerce, for $77,000 per year, Robles Chamber of Commerce for promotions. the City maintains a visitors'center in downtown The base amount of$218,300 plus an incentive is Pismo Beach. Funding of the Visitors' Center based on the amount of TOT the City receives. covers an 800-phone number for travel guide The 2007 contract amount should total $248,000. requests as well as postage costs for fulfillment. The Paso Robles VCB normally has a full-time The City owns the building where the Visitors director and various part-time assistants. Center is presently located and the Chamber The Paso Chamber's President/CEO and Board pays for its maintenance and use. The City of Directors help to provide guidance to the Paso employs two people to manage the Pismo Beach VCB. The Paso VCB provides a wide variety of VCB. They are responsible for all marketing services in its promotional efforts. It maintains activities, including advertising, public relations, Visitor; Center in downtown Paso Robles at the website maintenance, and special promotions. train station and another one at the airport. They The Pismo Beach VCB has a Board of create and place ads as well as developing and Directors-who determines the specific allocations maintaining a website. They partner regionally, of their budget. Their annual budget for 2006- with the San Luis Obispo County VCB on 07 is $473,000. They presently do not have a cooperative advertising and support of region relationship with the countywide VCB having marketing efforts. opted to do only direct advertising, and no cooperative/regional outreach. The Pismo They engage in extensive public relations releasing Beach VCB defines its target market as the on average a press release per week describing "driving from" market as far away as five to events and happenings in and around Paso Robles. seven hours. To capture this market, they They also maintain a calendar of events. The staff actively advertise in the San Francisco and focuses on individualized visitors with travel writers Sacramento marts. Pismo Beach VCB does and their personal touch has resulted in recent what they refer to as "maintenance marketing" articles in Forbes and Via Magazines. They also in Los Angeles and the Central Valley; they feel are working closely with the Central Coast AG that people in the Central Valley know Pismo tourism Council and the City's Barney Schwartz Beach better than its residents as it is often Park, providing staff support and coordination. referred to as "Fresno West". 10 C//--�3 �&san of osispo Tourism Marketing Plan 2007-08 ATTACHMENT 1 Ldusby Tmnds In reviewing the latest Travel Industry Association In looking at the seasonality of travel, summer of America's MA) top travel trends data for still remains the most popular time for 2005, several findings are worth pointing out in Americans to travel. However, the other three support of the assumptions made in this report. seasons appear fairly even in popularity: Laimm nmw Bndow Tiavd While business travel has sharply declined since �•% 2000, in 2005 it accounted for a quarter of all o U.S. domestic travel with more than 500 million O5� trips taken. However, it seems to concentrate on consulting and client service related travel and trips combining business with leisure account for a mere 9% of all trips accounted for. Thus business travel remains a stagnant sector, but continued The same tendencies can be found within the monitoring should be applied in order to address monthly share of annual U.S. travel with July potential shifts. and August representing 20.5% of all travel activities. The slowest travel month is January Leisure travel accounts for 75% of the 1,992 followed by February and October. Interesting million domestic trips taken in the U.S. in 2005. is the fact that November and December show 85%of these trips were taken by car, truck, or RV the same level of travel activities as September and only 9%account for airplane travel. with 8.9%and 8.7%respectively. The top activities for domestic travelers once at These trends are clearly reflected in the City of their destination were diming, shopping, and San Luis Obispo local travel activities; however entertainment. the Winter months seem to trail behind the national average and yield lower travel numbers. .. LarsuirActhitics Condsi iioa: Shopping 30% Leisure travel remains the strongest travel Social/Family Events 27% segment within the U.S. This includes visiting Outdoor Activities 11% family and friends as well as historical and City/Urban Sightseeing 10% natural sightseeing. Beach Activities 90/0 Historic Places/Museums 8% Outdoor and activity driven destinations are still very attractive, but culinary tourism and package vacations are on the rise. The internet has become the premier travel service and most travelers are booking directly through online providers. This offers a unique marketing approach to position San Luis Obispo as the center for all desired activities and sightseeing pleasures. 11 ell�y C �7 crcv n of oRispo Tourism Marketing Plan 2007-08 ATTACHMENT 9 whim U. PEST and SWOTAnal sis Ecolutalk The following PEST (Political, Economic, Social, -4 Sales tax initiative Technological) and SWOT (Strength, Weakness, -k No seasonal influences due to stable Opportunity, Threat) analysis established by the weather year round PCC evaluate where San Luis Obispo's 4 Two very diverse populations with students competitive advantages and disadvantages lie and and seniors representing the core compares them with opportunities and threats in -4 High purchasing power reflected in the the external environment. However, in order to stores selection currently present weigh them correctly, we need to consider the i4 Airport expansion influence of political, economical, social, and technological influences on the SWOT. The Tac6aakw analysis below summarizes the information 4 Smaller, more entrepreneurial opportunity contained in both situational analyses. driven segment Cal Poly influence Niche market opportunities Political, Economical, Social, and Technological tendencies in San Luis Obispo: Pcdi�ra! ^4 constant balance between businesses and environmental groups -4- increased interest in status-quo and no growth -4 historical preservation 4 govemment politics driven by open information, feedback driven, outreach, and community buy-in +66 Strong lobbying groups in Chamber of Commerce, EVC, Downtown merchants, and environmental groups .Soda! 4 leisure and culture driven lifestyle 4 55+ age group expected to grow exponentially—families in decline 4 very California compatible 4 creative, affluent and innovative community that embraces technology 4 Strong ties to community events and cultural activities 12 Ci/-is C O s.n uis osispo Tourism Marketing Plan 2007-08 ATTACHMENT I (SWUD Analysis Considering these influences, the City of San Luis Waakuass aonbnaad- Obispo has strengths and weaknesses which have a -4 We lack collaboration and therefore significant impact on the way it approaches its have not capitalized from outreach tourism marketing. It is important to take advantage synergies with local cultural of the strengths to create competitive advantages. organizations. At present, the City of San Luis Obispo's -j& The City's official website is government strengths and weaknesses can be described as driven and lacks any tourism angle or follows: relevant information for visitors. Srnwg6a Oppormnm N Through the 2003 Marketing Plan we 4. There is a tremendous potential for have defined marketing goals and marketing collaborations with cultural objectives to build on. organizations. 4. The established target audience we seek to We need to build on image alongside attract is in line with local cultural the well established brand. organizations which enhances the offering 4 Research to gain better data is and incentive for extended stays. imperative. -4 We have an established and distinctive w Market the City of San Luis Obispo brand with proven name recognition. destination as the cultural center of the 4 San Luis Obispo offers a central location Central Coast. and is positioned perfectly as the "hub" to Capitalize from the marketing efforts for the Central Coast. the new hotel inventory. 40. We pride ourselves with diverse and high- end shopping and food and wine offerings. 71taw Accessibility is constantly improving with 14 We face increasing competition from the expansion of the airport and additional within and from without the County. airlines serving the region. 4 San Luis Obispo lacks popular 4o The City offers historical sightseeing and is attractions. well equipped for outdoor activities. 4 The San Luis Obispo wine industry 40%of the City's tourism business is based remains unorganized. on return visitors. 41� Budgetary limitations are continuing. 4 The City needs improved ground Wam(mm transportation. 4 We have a brand,but no true image. 4 Unpredictability of gasoline prices .4 The City lacks a comprehensive signage to continues to drive travel decisions. facilitate visits to the cultural and historical sights. *+4 The marketing budget is limited due to competitive needs within the City. a► We lack the knowledge of Return of Investment (ROI). & We have yet to attract group business. 13 C///� • `tt' of Tourism Marketin Plan 2007-08 „I ACHMENT I san Luis ot�tspo g SWOT Action Plan Overcome weaknesses to pursue opportunities S&EMINtba i�/aaEaases �6 Distinctive Brand �6 Lack of Image -4. Repeat Business -4b. Lack of Signage 4. New Hotel Inventory 4b. Limited Budget 4 Ideal Location within County 4 Lack of Ground Transportation 4. Proaumity of Airport 4 Lack of Group Business Established use of technology and new al Lack of Research media 4 Limited Target Audience QAWZ u &10 1 7bnsata -4. Targeted Research .4 Lack of Beach .* Create Image -► Lack of immediate Attractions 4. GIA marketing partnerships 4 Local and Statewide Competition . 4 New Airlines 4 Increased Inventory Countywide -4� Cultural Offering -4 Gas Prices -'6 Build on online presence Increase reach by incorporating different segments of population (target audience) Minimise vulnerabilityto threats using strengths 14 O ATTACHMENT 1 citsari It is omspo Tourism Marketing Plan 2007-08 Mari dng GIVec6im and Issues Based on the analysis of the City's target market, The need to increase TOT and Sales Tax its competition, and the opportunities available, the revenues remains critically important to the following marketing objectives will guide the continued fiscal health of the City. In order to marketing strategy and efforts. In the end,all efforts achieve this objective it is important that the shall support the City promotional Mission City's marketing strategy seeks to: Statement: 7be City of San Luis Obispo's tourism 1) Encourage visitors to stay a promotion mission is to emih the quality minimum of 2 days. of M and to impmve the social, cultaml, and economic aspects ofSan Luis Obispo 2) Converts "travel through" by geaemiaff travel, vacation stays, and visitors to overnight stays. visits to &a Luis Obispo as the center and pmmier travel desumtiou of the 3) Capitalizes from the unique Central Coast cultural and food and wine offerings including the local wine region to capture new and return visitors. This section includes the objectives for the City's marketing plan, along with the keys to success and 4) Continue to increase the critical issues that are associated with these number of repeat visitors. objectives. Financial Objectives: Sales Tax and Transient Occupancy Tax (TOT) are important revenue sources for the City. The �Luis■ City Council recognizes this importance yearly with v� �, ic� the allocation of budget to support these revenue BLS V streams. As part of Economic Development, they t LQ fj� I objectives for tourism are clearly stated and an �d important goal for City Council. -4 Strengthen support for tourism promotion (Financial Plan 2007-09) -4 Encourage and promote projects and programs that will increase sales tax and transient occupancy tax (Financial Plan 2005-07) 15 n ATTACHMENT 1 �;i san uis oRispo Tourism Marketing Plan 2007-08 Markeeag 0%ectrves (continued) The following marketing objectives are essential in MaAdRacita b 0 the development of the marketing strategy and deployment of the marketing mix. 1) Gain knowledge of the overall tourism industry in the County. TaJW Madr t 0 2) Gain knowledge of the effectiveness of promotional efforts. The target audience for the City of San Luis Obispo is generally defined as an affluent, middle aged couple, traveling without children, highly cabi allsaum educated professionals with a disposable income. The following critical issues need to be kept in Within this target, the following objectives should mind while working to obtain the above be addressed: objectives: 1) Culture oriented travelers 4 Rapidly growing inventory m the entire 2) Travelers interested in food and wine trips county. 3) Outdoor oriented traveler 14 Tremendous untapped wealth of cultural aganizatrous to work with. The immediate geographic target markets are Orange County, Los Angeles, the greater Bay Area including San Jose, and Central Valley cities such as Fresno and Bakersfield. However, the SM Lvs■ objective is also to explore the new markets M06§60 available through airline connections such as Delta into Salt Lake City, Phoenix, etc. As international L46! travel regains strength, a close look to the California Tourism efforts to find potential opportunities will be imperative. PAmodaa andAdRYtidw 04=dii= 1) Create an image to supplement the existing brand. 2) Position San Luis Obispo.as the place to stay for all visits to the County. 3) Position San Luis Obispo as the cultural center of the Central Coast. 4) Drive all traffic and interest to the website and create a one-stop solution. 5) Target the defined geographical and demographical markets. 16 ATTACHMENT 1 dii6 san tuffs owspo Tourism Marketing Plan 2007-08 MaAeting Sfttea The City of San Luis Obispo is committed to Z. San Luir Obispo should be &e aemar for remaining the center of the County and to invite any visit to&CbnW visitors to the Central Coast to make it their San Luis Obispo is uniquely positioned within main stay for all activities and events they plan.. the County and presents itself as the natural. The goals of the City of San Luis Obispo's place to stay and conveniently reach all marketing strategy are to: destinations within the County. Its tremendous cultural and food and wine offering builds the 1) Create an image to support the brand; focal point for evening activities. Farmers' 2) Encourage visitors to stay a minimum of Market, Mission Plaza, Downtown shopping 2 days; and its cultural organizations are all features 3) Converts "travel through" visitors to that make San Luis Obispo special. The overnight stays; promotional message needs to portray this 4) Capitalizes from the unique cultural, niche within the County and the convenience wine and food and outdoor offerings to factor a stay in San Luis Obispo offers. capture new visitors; 5) Continue to increase the number of 3. San Leis Obispo is the cndtraal acute of repeat visitors. tbe.Coal Caest San Luis Obispo is home to a vast array of Pbalvo8 cultural organizations that offer high quality music festivals, nationally recognized art The City of San Luis Obispo is ideally located festivals, a "state of the art" performing art to be the center for all travel and visit oriented center, and many other organizations that caber stays within the County. Its cultural offering is to niche interests such as poetry and creative unique and presents an advantage over the local writing. All of the festivals that draw visitors and regional competitors. The City of San Luis from outside the County pursue the same target Obispo is able to provide a unique experience audience the City seeks to attract It is through proximity to a vast variety of day imperative that the promotional efforts utilize adventure trips and attractions. these synergies and store for collaboration with these organizations. L Cnvaeaaimergr Numbers from the latest Economic Impact Over the past years, San Luis Obispo has study of America's Nonprofit Arts and successfully introduced its tourism logo. Culture Industry found that travelers who However, it is currently missing an image that include arts and culture events in their trips the logo should evoke. It will be essential to differ significantly from other domestic travelers utilize the marketing efforts to create an image in a number of ways: behind: tl &N j� sm 4 They spend more ($623 vs. $457). �J ` i •7 4 They are more likely to stay in a hotel i OBISPO (62%vs. 55%). i th&/SO a0i They travel for a longer period (52 nights vs.3.4 nights). 17 C//-o2d -_ -- C 7 ATTACHMENT I i " - °F Tourism Marketing Plan 2007-08 ms sap luis ot;ispo Mar6ting Mk To accomplish its main marketing objectives, the part of the work scope for this contract as is the City applies a strategy of diversified promotional enhancement of the website per PCC effort in collaboration with local organizations and an recommendation. advertising agency. All contractors assist in the implementation of the overall community promotions 3.Rmi m/MarboiQg3arim program. The City's diversified approach to The regional marketing concentrates on marketing has provided a means to leverage limited promoting the advantages of San Luis Obispo funds through direct and regional marketing efforts, County as a destination for tourists seeking to visitor services and access to specialists in the local visit the Central CoasL The City's tourist tourism industry. Four contracts govern this amenities become more attractive when they are diversified approach for 2007M in the following marketed as the central location for all county- areas:public relations,visitor services,regional wide destinations. The San Luis Obispo marketing and advertising. Visitors and Conference Bureau (SLOVCB) is in a position to accomplish this aim in an L p1VCRafidow t efficient and economical manner for the City. The objective of the PR contract is to promote the The SLOVCB plans to undertake several niche advantages of San Luis Obispo as a destination for marketing initiatives in 2007-08 and will tourists, disseminate visitor information, and introduce its new website in July 2007. The properly respond to inquiries about activities and SLOVCB will work closely with the other events taking place in the City. It should strive to contractors and the PCC to include the City in obtain favorable media coverage about the City in those initiatives and highlight its unique traditional and new media and various offerings. entertainment outlets. Specific services to be provided by the More specific services and goals include: the SLOVCB for regional marketing include: the maintenance and development of relationships with maintenance and development of information travel writer and editors, writing and distributing that suits the needs of visitors and conference press releases about the City, "What's New in San attendees, developing group business and Luis Obispo" releases, and maintenance of the conferences, coordinating with the City to create existing "press room" on the v,&Aslo.mm website. and implement a marketing campaign, acting as All media placements and coverage for the year is a city-wide film commission, maintaining expected to meet a total value of one million dollar electronic information about the City, in advertising equivalent, and a broadcast coverage disseminating and promoting the City's brand to approximately two million people. developed for community promotions. Z. YmmwandEtaaannichiimamnSaid= 4 Adv=aWv5aVi= The Visitor and Electronic Information Services The advertising contractor develops and places a Agreement shall provide specific services such as a comprehensive advertising campaign on behalf public office in a central location for visitor of the City. This contract also includes the information with a high level of customer service to provision of advertising "fulfillment" services by visitors and providing information about the City's responding to requests for visitors' information, sights and attractions. The maintenance of the and continued outreach to the local lodging City's tourism website vAWki cram is also industry. 18 sa�n Of oRispo Tourism Marketing Plan 2007-08 ATTACHMENT 9 1 fade&g A&anmwad- N. Man&h�ffRmarch 5.Eahaaaed Plmmaaom In 2007-08 the Economic Vitality Corporation The Enhanced Promotions program will allow the (EVC) plans to commission a tourism study to Promotional Coordinating Committee (PCC) to evaluate the overall impact of tourism on the take advantage of unique marketing opportunities county's economy. This study should provide a as they arise. These opportunities could present thorough overview on the industry, its benefits, themselves as use of new technology, cultural its needs and current position. The City of San programs, partnership opportunities, niche Luis Obispo will participate in this study and marketing etc. It is a competitive program that hopes to gain a good understanding of the allows the committee to dedicate the funding where current state, the importance of tourism and the they see best fit. All contractors, as well as outside tendencies that drive this vital industry in San organizations, are able to apply and compete for Luis Obispo County. the funding and based on presentation and uniqueness of the marketing opportunity the PCC This study will be followed by an independent will decide which program to sponsor. ad effectiveness study in 2008-09 to evaluate the City's Return of Investment and to update the 6. Gmvb-&A afPlmoaam information gained during the last study in Each year, City Council funds a Grants-in-Aid 2000. It should provide a better understanding program that is administered through the PCC. as to the effectiveness of the current approach The program supports local cultural, social and and the steps to be undertaken to keep the City's educational organizations that bring tourism to the promotional efforts effective and successful. City and enhance the fife of its citizens. This competitive grant provides funding to 35 to 40 organizations each year. 19 Cir-2 z 1\ i �� o� ATTACHMENT 1 g/san Luts oRtspo Tourism Marketing Plan 2007-08 V Ma&e&g Organ;Ta�on city Council Promotional Coordinating Committee Grants m Aid Marloetmg Sdoommittee Subcommittee Advr�osiog Public Regional Toorivt Curter Contras Relatioffi Mar)�ng Conuaa 2007-08 Promotional Coordinafm Committee Members: Cate Norton,Chair Debbie Niddas,Vice Chair John Conner Rob Sexton Cathie Babb Terry Conner Jeanne Kinney !�LIs® R���• BISPO .y.•r Nwtirm�mbJsto Lam! 20' C aan urs owspo Tourism Marketing Plan 2007-08 ATTACHMENT 1 W. Finaacrah and2007-O9BudLet Community Promotion Program The San Luis Obispo City Council fully recognizes the importance of its community promotion program and places emphasis on supporting the goal to make the City the central tourist destination within the County. It has therefore increased the amounts dedicated to this program and plans on spending the following amounts for tourism promotion: Aaavity Cat Summary 2007-08 2008-09 Advertising Contract 187,500 197,000 Chamber Promotional Services 43,500 44,800 Chamber Visitors Center 88,900 91,500 Visitors and Conference Bureau 72,200 73,400 Enhanced Promotions 25,000 25,000 Advertising Effectiveness Study 5,000 10,000 Support Costs 1.000 1.000 Total 244�Z44 Staffing Summary Staff assistance is provided by the Principal Administrative.Analyst and supported by the Administration Department's Administrative Assistant. Significant Program Changes: ■ 2007-08 Adjust Advertising Budget to reflect increase in media costs since 2003 will cost $13,500 in 2007-08 and$23,000 in 2008-09. ■ 2007-08 Re-introduce an enhanced promotion budget to support promotional opportunities not scheduled for will cost$25,000 per year. ■ 2007-08 Re-introduce much needed research and study budget to verify program effectiveness will cost$5,000 in 2007-08 and$10,000 in 2008-09. All promotional efforts are directly tied to the City Council's Major City Goals ■ 2007-09 Downtown Improvements. Strengthen support for the Downtown in multiple areas, such as maintenance, economic development, public safety, parking, tamfsmpruma6an, progress on the installation of pedestrian lighting and comprehensive directional sign program, and other improvements as resources allow. In addition to the budget for promotional efforts, the PCC oversees a Cultural Grants program to support cultural,social and educational organizations in promoting their tourism generating activities and events. AaWly Cost Summary 2007-08 2008-09 Cultural Activity Grants 100,000 100,000 21 ci mda s n uis oRtspo Tourism Marketing Plan 2007-08 ATTACHMENT 1 VE Peifo==w Monitoring The PCC, in collaboration with City staff, monitors the different programs and contracts supported by the Community Promotion program. Each contract contains a well-defined workscope that governs the expected accomplishments by the contractors. Each month, the contractors submit a written report specifying their work and achievements as it relates to the specified goals in the work scope.The reports therefore include: -46 Summary of activities and achievements relating to work scope as outlined in Appendix A Summary of monthly website information Summary of public relations efforts with travel writers, editors, radio journalists and television producers including press releases, contacts and media placements. Discussion of any travel writer trips hosted or planned. Summary of advertising placements. A discussion of City specific Public Relations and advertising efforts. 4 Media placement reports tracked through a clipping service. In addition,each contractor is expected to present a quarterly oral report to the PCC.This report shall contain a summary of all work, programs, placements and achievements over the past quarter and a 60- day outlook on upcoming plans and efforts. 22 2003E] ATTACHMENT2 -- Executive Summary .... 1�- 1 Current Market Conditions ........................................................ 2 City of San Luis Obispo Community Promotions Program ............... 2 Local Trends �— .............................................. 3 Competitive Assessment Industry Trends MarketAnalysis .......................................................................8 Strengths ................... ................................................ g Weaknesses ..........................8 ......................................... Opportunities ......................................................................... 9 Threats .................................................................................. 9 ' Market Segmentation ............................................................... 10 W ' Market Positioning ................................................................... 11 MarketingObjectives .............................................................. 12 Marketing Strategy. ------------- i v v v v r O• �, o .+act • "HGF, ell R. W M. • ' •• _ 2003 ■ ATTACHMENT 2 In 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 Marketing Pian 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 j experience a variety of activities and feel refreshed upon completion of their visit. The Six Main Objectives of This Plan Are: 1. Increase transient occupancy and sales tax. 2. Develop and implement a brand image. 3. Enhance and use as a fulfillment toot 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 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 will demonstrate why the business people of San Luis Obispo are part of the "SLO i LIFE". b. WA _. c�i-z.7` • . . 2003 City of San Luis Obispo Community Promotions Program ATTACHMENT2 y �9 History & Goals �y In.June 1970, the San Luis Obispo City In 1964, the City passed its first TOT ordi- Council established the seven-member nance, obligating City hotels and motels to Promotional Coordinating Committee collect this tax at the then rate of 5%. a (PCC) as a standing City committee. Increases to the TOT occurred in 1976, raising TOT to 6%; in 1991 to 9%; and finally, to the current TOT rate of 10% in 1993. The na- tional average for TOT is 12%. The City's TOT 1. Improve the quality of life is unlikely to change in the near-term, in an available to all residents of and era post California voter approved Prop 218, visitors to San Luis Obispo which would require any modifications to the '-� City's TOT to be taken to a vote of all City w 2. Promote, in a manner consis- residents. tent with long-range community goals, the development of San Luis During the 1990's, the importance and Obispo as a regional and tourist predictability of TOT as a revenue stream center. became evident to the City. At that time, the TOT rates increased on average 10% per year. The PCC is responsible for a comprehensive The growth came without significant develop- menta with the number of hotel/motel 4maJ promotional program that includes over- properties and rooms, increasing slightly. and public relations campaign as well as seeing the development of advertising Beginning with the national economic \� promotional publications, including maps downturn in 2001, revenue growth in TOT and informational brochures. The PCC also became less predictable. Like many munici- palities, 2001-02 was an "off year" for TOT in w. f makes recommendations to Council regard- San Luis Obispo. 2002-03 has had its ups and ing grants to organizations that encourage downs. and provide for the economic, cultural, `— and recreational improvement of San Luis Obispo under the Cultural Activities Because TOT merely provides the amount of �. Program. tax collected, not occupancy rates, TOT alone is not a good indicator of current market Staff assistance is provided by Administra- trends. In reviewing Smith Travel Research tion from the Economic Development Reports, for the City, for several years, we Manager and Principal Administrative find the trend to be toward lower occupancy Analyst. rates and higher room rates. As a mid-priced market, there has been a tolerance for rate increases. Declines in occupancy have been Transient Occupancy Tax offset by rate increases. This trend, however, The City's community promotions program is not sustainable. .. 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). -��' cis -City of San Luis Obispo, 20030 �. Local Trends City Transient Occupancy Tax The City of San Luis Obispo experienced consistent growth in its TOT for many years; During the same year, the San Luis Obispo it is just recently that TOT for the City has County VCB distributed travel guides to 35,000 o fallen off. potential visitors, of which an estimated 10,850 (31%)' stayed overnight in San Luis Although TOT revenues are varying signifi- Obispo. cantly from month to month, some months e are up others are off, in looking at Smith In 2000, the City completed an Advertising Travel Research Reports, one trend appears Conversion Study that profiled the type of clear. Occupancy, in particular midweek visitor to San Luis Obispo. According to occupancy, is down. TOT revenues have been Campbell Research, the "typical visitor" to San assisted in part by increased room rates. Luis Obispo is a well-educated adult couple Revenue declines from most properties seem that travels by car and makes at least three directly attributable to midweek business leisure trips a year. They stay for a day or a travel having substantially declined. The weekend to shop and sightsee in San Luis market is now sharing its tolerance for rate Obispo and other cities, spending about $400 ' increases so TOT revenues are unpredictable to $500. About half consider San Luis Obispo �- at this time. their primary destination. .. Visitor Information and Conversion Summer is the peak time for out of state visits to San Luis Obispo while fail is for in state Studies visits. The LA Times was one of the strongest The City of San Luis Obispo is a popular place. sources for conversion. Almost 66,000 visitors sought information from the San Luis Obispo Chamber of Com- In summarizing respondents' description of e„ merce Visitors Center from March 2002 until their most recent trip to San Luis Obispo - 48% a February 2003. In 2002, working with the listed it as their primary destination, while City's Advertising Contractor, Barnett, Cox and 27% characterized it as a place to visit as they Associates, the Visitors Center provided 7,899 travel through, and another 25% as one of "a fulfillment packets to potential visitors. few key stops."., 2002v.o Cunt, L.. �- Smith Travel Monthly Occupancy Rate City of San Luis Obispo 2001-2003 .10 CIO WOW d° 10 wAl` --- _. .Im•un.-: f'nnruon N.nrci: At... mnry luny lifti AJginS.,pb:rtl:p• fJft,b•n rvovertUcr UnenLer • ' '' 2003 �. A�ACHME�2 V (f� CMPetitive Assessment " The City of San Luis Obispo faces competition locally as well as within the greater Central Coast Region (specifically'Santa Barbara and the Monterey Bay Area). Locally, Paso Robles, Pismo Beach, and the North Coast compete with the City for visitors. Each area has a different approach to tourist promotions that will be discussed in detail below. 4MWJ d • Wa..q San '. .LuisSanta Monterey Obispo Barbara Bay Area , �- Number of 33 31 hotels 17 165 225 Properties 3 RV Parks ( ) Number of 1,861 1,394 Rooms 748 9,449 12,000 VV Rooms 725 RV Spaces 1 Total Budget $378,800 $499,699 $215,000 $1,577,266 $3,000,000 �.. 4�J F ding 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 t Membership 0 0 $5,000 $65,000 $200,790 Dues a:. Monterey :. 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. County of Monterey, the City of Monterey, They provide convention services, sales and other area municipalities. They have services, cultural tourism and have a three contracts for funding from the public relations and communities, promo- municipalities, including discretionary and tion department. The web design work of non-discretionary contracts. They area the Monterey VCB is done internally, with membership-based organization with an outside portal style web provider. The private source revenue in the form of Public Relations and Communication dues. 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 their information at the Visitor's Center. ell-36 4 l/-364 • ' ' ' 2003 AUAMMEM2 City of Santa Barbara 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 b is an independent, non-profit corporation 200 hospitality partners from the private comprised of marketing professionals. sector. Their Board of directors is comprised They have a contract with the City of of 16 volunteer professionals from their • �� Santa Barbara ($1,339,866) and a contract membership. They also serve as the Film with the County of Santa Barbara Commission for Santa Barbara County. !� ($106,400) to provide external marketing • w..� including advertising, public relations, The SBCVB&FC focuses on marketing that lead generation, web marketing, and so promotes tourism (both corporate and forth. leisure). They are responsible for branding and marketing the community to potential The Santa Barbara Visitors Center is run by visitors (outside of the county). Once the the Santa Barbara Chamber of Commerce visitors arrive, they are serviced by the with funding from the City of approxi- Chamber via the Visitor's Center. The Film mately $60,000 per year. The Visitors Commission is part of the CVB because its Center's main function is to answer ques- mission (to promote Santa Barbara County tions from visitors once they are in the as a destination for filming). Both bring City and to distribute.brochures such as external dollars into the community and the County Visitors Guide, produced by the are marketed with a unified message. They SBCVB&FC. work with web designers to develop their visitor-friendly site that is consistent with their branding. All maintenance is per- °4 / formed in-house by the CVB. City of PasoRobles „�, 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 Cham- maintains Visitors Centers in downtown ti.. ber of Commerce entered into a Services Paso Robles at their train station and at .. Agreement whereby the Chamber would their airport. They create and place ads as provide promotional services to the City well as develop and maintain a website. through the Paso Robles Visitors & Confer- They partner regionally, with the San Luis ence Bureau (Paso VCB). Obispo County VCB on cooperative advertis- ing and support 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 amount of $213,700 and in 2005 at the a calendar of events. The staff focuses on base amount of $218,300. Depending individualized visits with travel writers and upon the amount of TOT collected by the their personal touch has resulted in recent City, the Paso VCB receives a bonus (or a articles in Forbes and Via Magazines. They `– percent of the TOT). The Paso VCB has a also are working closely with the Central 1 Director, Director's Assistant and a Full- Coast Ag Tourism Council and the City's Time Equivalent (46 hours of Visitors Barney Schwartz Park, providingstaff sup- Center Work). port and coordination. The Paso Chamber's President/CEO and Board of Directors help to provide guidance to the Paso VCB. ell—,31 5 e . .. 2003 : ATTACHMENT City OPISMO Beach 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. e 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 on the website. "members" as the program is not member- ship-based. The Pismo Beach VCB has a Board of Directors who determines the specific Through a contract with the Pismo Beach allocations of their budget. Their annual Chamber of Commerce, for $77,000 per budget for 2003 is $450,000. They year, the City maintains a Visitors Center presently do not have a relationship with �. in downtown Pismo Beach. Funding of the the Countywide VCB having opted to do Visitors Center includes an 800-phone only direct advertising, and no coopera- number for travel guide requests as well as tive/regional work. The Pismo Beach VCB postage costs for fulfillment. The building sets their target market as the driving N,,,, that the Visitors Center is presently in is market from as far away as five to seven City owned, the City provides it at no hours. To capture this market, they charge and also pays all utility costs. The actively advertise in the San Francisco �— Chamber pays for maintenance and use. and Sacramento Markets. Pismo Beach VCB does what they refer to as "mainte- The City employs two people to manage nance marketing" in Los Angeles and the the Pismo Beach VCB. They are respon- Central Valley; they feel that people in sible for all public relations efforts. They the Central Valley know Pismo Beach produce an average of three to four press better than residents do as it's often releases each month. They do many story referred to as "Fresno West." t pitches 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, coordi- nating lodging, etc. They also coordinate and/or participate in familiarization tours (Fain Tours). They participate in many 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 Famil- iarization Trip was very beneficial to Pismo ' Beach. C��r✓ 6 ( - W,W, R 2003 Industry Trends ATTACHMENT 2 In reviewing the Travel Industry Associa- We Have the Ingredients for a tion of American's (TIA) top travel trends Successful Leisure Travel Market for 2002, there are several that should be of concern to the City and several that Leisure travel is predicted to be the strongest should 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 This trend is increasing exponentially with accomplished have changed. Technologi- technology-use dominating travel-marketing ® cal advances have enabled business travel- trends. �- ers to remain at home more frequently. The costs from a fiscal and physical Vacation destinations sought include beaches standpoint of traveling exceed the ben- as well as mountains and historical sites. a.. efits. Business travel is expected to rebuild somewhat, but not to exceed 2000 There is a niche market potential for San Luis 4p levels for at least five years, if then. Obispo. We offer adventure, "heritage' and =J Partnerships with local visitors organiza- nature based opportunities as well as being tions and properties are suggested so that very close to wonderful beaches. vital information can be shared. Shopping 33% i Second Best Presents an 0 PPor- Outdoor (camping, hiking, biking) 14% tunity for Smaller Conferences Historical sites/museums 14% Although TIA predicts that conventions Beaches 10% and meetings will be very challenging - Cultural Events/Festivals 10% many conventions and meetings are �. National/State Parks 10% moving to so-called second tier cities. San f �. 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 _ I e1/--33 • . .. 2003 MACHMEM2 Strengths Weaknesses San Luis Obispo's strengths vary from the In developing the objectives for this market- tangible, such as our location and scenic ing plan, an analysis of the City's weaknesses beauty, to the intangible, such as the friendli- was conducted to better position the City. ness of the local residents. Many of the City's visitor weaknesses can be addressed. Location San Luis Obispo is a "gas tank" away from No Focused Brand Image .. California's major population centers. We are The City of San Luis Obispo lacks a focused centrally located between Los Angeles and San image or brand that is presented to poten- Francisco. We are also an easy drive over the tial visitors. There appears to be a per- hills for residents of the San Joaquin Valley ceived lack of distinction between the City seeking coastal access. San Luis Obispo is the of San Luis Obispo and the County of San r geographic, cultural, educational, and employ- Luis Obispo. Many people when visiting the ti/J ment center of San Luis Obispo County. San County, seem to refer to the entire region as Luis Obispo's location gives it the ability to San Luis Obispo. As a brand, San Luis attract visitors from diverse markets seeking Obispo may be the generic name, like convenient access to countywide attractions Kleenex, for the various visitor activities as well as the City itself. offered throughout the County. Downtown No Major Attractions Downtown San Luis Obispo has a unique mix There are no major attractions, such as of historic buildings, new lifestyle centers, Disneyland or an Aquarium, in San Luis long-time local retailers, and national chains. Obispo, though for some this may be a It's pedestrian friendly nature and mix of strength. shopping and entertainment opportunities result in a popular destination for visitors who Limited Convention Facilities seek something that is unique. Presently, we lack adequate convention facilities, for large meetings. Because of The SLO LIFE our centralized location, we may be missing The residents of San Luis Obispo are friendly out on potential meetings from diverse and helpful to visitors and residents alike. groups who could "meet in the middle". Visitors often comment on how welcome they feel in our City. San Luis Obispo is a safe Limited Funds �. community that presents many family ori- As compared to Monterey and Santa Bar- ented activities such as the world famous bara, the City's funds for marketing itself as Farmer's Market. a visitor location are limited. Value Perceptions San Luis Obispo offers value to visitors. Not P There still seems to be a perennial percep- only are San Luis Obispo's lodging properties tion that San Luis Obispo is unsophisti- priced more competitively than Monterey or cated, a "cow town" with little to offer in Santa Barbara's but they offer good value to the way of culture or that the City is too their customers. The same can be said about much of a "college town". Santa Barbara the dining and shopping opportunities in the and Monterey have greater national and City. international recognition. e.. Limited Air Transportation Air transportation to San Luis Obispo is presently limited by the number of flights to the City and the areas of origination. 8 . . WIN . . . _ 2003 ATTACHMENT 2 .�. ®pportuniiiesThreats Upon analysis, there are a series of opportu- The.following represent possible threats to nities before the City, which if capitalized . Y P the recovery and improvement of the City's on, could result in.increased TOT. community promotion efforts: 1. Convert casual day-trip travelers to 1. Continued blurring of the brand overnight stays. Do so by marketing that distinction between San Luis Obispo there is more to do in San Luis Obispo County and San Luis Obispo City. than a visitor can do in one day. 2. Increased promotional efforts by 2. Encourage visitors to stay one more competitors. �.. night. 3. A significantly stronger economy 3. Encourage visitors to come again. which 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 visitors. 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 II, strategic alliances include the following groups: Airlines ' Amtrak 'ocal Arts Community Media Cal Poly -Mozart Cal Poly Alumni MC Cuesta Restaur6nis Downtown Association ' ers Hearst Castle S31mphony, Wineries Hotels/Motels SportsYouth L �- cis-3s 9 y — • . .. IMM"M2003 MOMENT 2 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: B 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 Visit A 0? bL Arizona residents Film companies Bay Area residents Outdoor enthusiasts Bus groups San Joaquin Valley residents Conference attendees Special interest groups Families Visitors to Monterey/Santa Barbara Our Primary Target The primary target visitors for San Luis Obispo should be a sophisticated, well educated, value minded couple who is looking for a trip that wilt afford them the opportunity to experience a variety of activities and feel refreshed upon completion in the San Luis Obispo geographic region. 10 e,,_3� 2003 ■ ATTACHMENT 2 Threee 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, shop- ping, 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 Down- town, that make San Luis Obispo distinct. The City of San Luis Obispo should posi- tion itself as the center of anyone's visit to the County. Visitors should be encour- aged to make San Luis 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 G The City should be positioned distinctly from the County of San Luis Obispo as a J whole. The image management of the City should re-enforce to visitors the distinc- tion and benefit to staying overnight in San Luis Obispo City as opposed other locations within the County. J , J v 3. The Value Priced Alternative The City should be positioned against Monterey/Carmel and Santa Barbara as the 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. f .a. t c • . .. 2003 ATTACHMENT 2 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- ued fiscal health of the City. The website should serve as a fulfillment piece Three different approaches to increase that is equal to, or better than, its regional TOT an&Sales Tax are competition. Website search engine hits r �.y should be optimized. Data collection from w J 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 W. should have aesthetic value and reinforce the brand image. The website should have infor- `w 2. Develop and Implement a mation that allows viewers to make informed Brand Image decisions regarding visiting San Luis Obispo. '-- An acknowledged weakness, the City lacks a 4. Develop and Maintain Strategic brand image for tourist promotions. The L need to develop and implement a brand, be it Alliances 0 VNWMN%�', an image, tagline or other consistent icon Strategic alliances should be looked for and that symbolizes San Luis Obispo as a place to established in an effort to share in non-cash visit, has emerged as one of the primary assets and grow exposure. objectives of this Plan. v.. Members of the PCC and current contractors, 5. Collect More Data about the have identified words that could bring focus City's Market Position to the "reason people come to San Luis More research on marketing the City should - ^ Obispo", a brand promise if you will. The occur. Information about visitors should be following (which is too verbose for a slogan collected from the website and strategic � or brand) is thefilter through which all alliance partners to determine how the City is f advertising and marketing plans should be perceived in comparison to its competitors. viewed: The electronic database of new and repeat s 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 the hub, center,focal point, heart, univer- Standards for Contractors �-' sal starting point, soul, base of their Key metrics should be established and measur- vacation experience that always provides ability of work should occur. Once bench- small town charm (defined as the SLO LIFE, marks are established performance can be filendly people, refreshing/rejuvenating, more accurately evaluated. happy, less stress and safe). t 12 • . .. 2003 AnACHMEW2 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 contractor to fulfill its promotional efforts. tagline and possibly an image for the City This diversified approach provides the City should be developed by the Ad Contractor with the opportunity to leverage its limited who should also develop a campaign with funds through unique visitors services, the brand Promise. All other contractors regional marketing efforts and access to `- will implement the campaign and "brand" specialists in the local tourism industry, in as created by the Ad Contractor. coordination with an advertising contractor dedicated to promoting the City. The four 2. San Luis Obispo is the Center contracts will cover the following areas: of a Visit to San Luis Obispo advertising, public relations, visitors services County and regional marketing. As the Center of San Luis Obispo County, the City has a lot to offer visitors as a 4. Alliances and Support of Major convenient location to stay as well as an Events exciting location to visit. Emphasis on the The City should continue to build upon its � existing alliances with other organizations Lr•/O /1 convenience of our location, its historical connections to the Mission (stay where it interested in increasing visitors to the � started), as well as having access to all region. The City should continue to support sorts of activities from golf to wine tasting major events that result in increased visitors to the outdoors should be our focus. and an enhancement of the image of the City as a place to participate in many Research should be undertaken regarding diverse and interesting events, "there's the potential for large conferences. If there something for everyone". is a market for large conferences, continued w research regarding existing and possibly 5. Future Goals for the Marketing future conference space should be con- ducted. Plan Should be Explored The Marketing Plan should not be considered �. Research should be undertaken regarding a static document. Rathei it should be the need for and the possibility of a prop- relied upon for direction but reviewed by �..� erty that is a spa or "destination". the PCC bi-annually and updated if neces- sary. Potential goals for the plan should be Community partnerships should be main- explored and added if relevant. Currently tained and enhanced. Particular focus identified potential goals include: should be on Wineries, the Arts Community, Touch Screen Kiosks the Downtown Association, Cal Poly, Agri- More familiarization tours cultural Tourism and Major Events. Media Kits Improved Visitor Signage A Live Spot by the Today Show Giveaways to Visitors t� New Convention Center Staff for Special Events Regional Jets at the Airport w Spa Resort PGA Tour Event Improved golf and tennis facilities cv Money for websites CityMarketing Department Improved ground/transportation ell-3/ 13 Promotional Coordinating Committee RT1ACHMENT 3 Minutes Wednesday, August 8, 2007 5:30 pm City Hall Council Hearing Room 990 Palm Street CALL TO ORDER: Chair Cate Norton 5:30 pm PRESENT: T. Conner, Kinney, Babb, Sexton, J. Conner, Nicklas STAFF PRESENT: Brigitte Elke, Principal Administrative Analyst PUBLIC COMMENT Lindsey Miller introduced the Chamber's new writer & editor Sara Doyle Lacamoire CONSENT AGENDA ACTION: Moved by Nicklas/Kinney to approve the consent agenda as presented. Motion carried 7:0. PRESENTATIONS 1. REGIONAL MARKETING CONTRACT—SLOVCB QUARTERLY-REPORT Jonni Biaggini gave an overview of the organization's 21 years of operation, the funding aspects of the current VCB and the benefits to its members:They are currently at the highest membership level in their history and at the highe t-retention ever. Johanna Koch, Marketing Director of the.SLOVCB, introduced the new marketing plan and the different niche marketing effcp,�JKfi are launching. Culinary and cultural tourism will be a highlight of the marketing efforts; as will eco/geo tourism. She also presented the new advertising campaign under the theme of: "Discover the Colors of San Luis Obispo County" and the upcoming co-,o advertising opportunities. Jonni Biaggim-introduced the brand new website that launched on July 31, 2007. New features-include: `%city pages and hero shots - recipes —wine country cuisine /� mapping - mini tower ad possibilities "the secret is out" - video opportunities (soon to come) Travelocity Booking engine MACHMENT 3 BUSINESS ITEMS 1. ADVERTISING CAMPAIGN OVERVIEW Bonnie ????, from Verdin Marketing Ink. asked the committee to review several a could be used as generic messaging for unexpected opportunities. Howev a committee did not feel comfortable with any of them, since they are not targete ey would like the advertising contractor to return with options that play more uyitNrhead lines that play of a targeted audience, message, and/or market. In these ads, the contractor used the tourism logo with the amended "City of" wording incorporated. The committee di ssed whether this was really wanted. The need to add "City of was driven by wish of the committee for GIA recipients to use the tourism logo as recognition for C upport. However, it was not meant to become the standard for tourism outreach. T committee discussed and decided to go back to the way it used to be and opera ith the "Bell" logo for the GIA program and the approved tourism logo for all the racted outreach.. 2. MARKETING PLAN APPROVAL The committee discussed the latest update of the marketing plan and suggested to replace all the culinary references with "food and wine" to strengthen the message for the Central Coast wine region. All changes submitted by the members were discussed and approved. Moved by Sexton/J. Conner to approve the marketing plan with changes discussed. Motion carried 7:0 ENHANCED PROMOTIONS 1. THE WINE MAKERS — A REALITY SHOW ON PBS "The Wine Makers" is a reality show produced on the Ce Coast and scheduled for airing on PBS in Spring of 2008. It was exclusively pro in Central Coast wineries and will bring much attention to our wine region. Brigitte Elke submitted the promot' material with the different sponsorship packages currently available. The co ' ee asked Rob Sexton and Brigitte Elke to negotiate with the producers and estab ' a concrete package in the value not to exceed $10,000. Since the program is no n Luis Obispo City specific, they felt that there need to be a bigger value clearly s ` ated in order to spend any promotional funding. ARACHMEW 3 PCC LIASION REPORTS No liaison reports were given. However, the committee decided that all membe u d present a report regarding their respective organizations, so the GIA mmittee could review the collaborative efforts in their evaluation of the n cycle. Brigitte Elke mentioned that all grant recipients have receive amber package and that the new list contains all the event dates. This sho ow the liaison to monitor the outreach efforts. The Chamber will keep track o they assisted and provide this information to the PCC. Brigitte Elke w' a sure that all members have the latest list of all recipients. The meeting adjourned at 7:35 pm to the September 12, 2007 meeting. ell S'Z