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HomeMy WebLinkAbout10-02-2018 Item 10 2017-18 Tourism Business Improvement District Annual Report Meeting Date: 10/2/2018 FROM: Greg Hermann, Interim Deputy City Manager Prepared By: Molly Cano, Tourism Manager SUBJECT: 2017-18 ANNUAL REPORT OF THE TOURISM BUSINESS IMPROVEMENT DISTRICT RECOMMENDATION As recommended by the Tourism Business Improvement District (TBID) Board: 1. Receive and approve the Tourism Business Improvement District (TBID) Board’s 2017-18 annual report; and 2. Adopt a resolution of intention to levy and collect assessments within the TBID area in fiscal year 2018-19 at the same rate as in fiscal year 2017-18. DISCUSSION Background In June 2008, the Council adopted Ordinance No. 1517 establishing a tourism business improvement district as requested by the local lodging industry. The district was formed under the State’s Parking and Business Improvement Law of 1989, sections 36500 et seq. of the Streets and Highways Code and codified into the City’s Municipal Code under Chapter 12.42. Pursuant to Municipal Code Section 12.42.060 and Sections 36530 and 36533 of the State’s Parking and Business Improvement Law, the appointed TBID Advisory Board is to submit an annual report (Attachment A) that outlines the past year’s efforts and how the funding was used and to what effect. Section 36534 further requires that after the approval of the annual report, the Co uncil shall adopt a resolution of intention (Attachment B) to levy an annual assessment for that fiscal year. The resolution also sets a public hearing in order to receive any written or oral protests against the continuation of the district as required by the applicable statute. Annual Report On September 17, 2018, the TBID Board met in a Special Meeting to finalize the 2017-18 annual report for recommendation to the City Council (Attachment C). Public noticing for the TBID Advisory Board meeting was performed through the posting of the agenda on the City’s website and in the kiosk in front of City Hall by 5:00 pm on September 12, 2018. For convenience, the agenda was also distributed to TBID constituents and stakeholders via email. The annual report reiterates the use of the TBID funds within the defined marketing platform that guides the strategy used to deliver on the TBID’s objective and goals. The report content includes: Packet Pg. 53 Item 10 1. TBID Background and Advisory Body 2. 2017-18 Year by the Numbers 3. Strategic Plan Implementation and Program Approach 4. 2017-18 Summary of Activities 5. 2017-18 Financial Statement 6. Looking Ahead to 2018-19 7. Charts and Graphs showing various results Next Steps Should the City Council approve the annual report and adopt the resolution of intention, a public hearing will be noticed for October 16, 2018. The public hearing will allow hoteliers to submit comments, voice concerns, and protest the assessment. As set forth in Sections 36524 and 36525 of the California Street s and Highways Code, the Council has the ability to continue the proposed citywide TBID at this public hearing, unless oral or written protests are received from City hoteliers that pay 50% or more of the proposed assessments. In that event, the Council ca nnot consider continuation of the TBID in the City of San Luis Obispo for at least one year. Noticing Schedule Legal notices regarding the City Council’s review and approval of the TBID annual report were sent to TBID properties on Friday, September 21, 2018. For convenience, the link to the agenda was also distributed to TBID constituents and stakeholders via email. FISCAL IMPACT The current unaudited year-end TBID Assessment Revenue for 2017-18 is $1,499,138 which is $34,751 more than the budgeted amount. In 2018-19, the TBID projected revenue is $1,473,400 and is budgeted for program costs including staffing. $29,500, or approximately 2% of 2018-19 TBID Assessment Revenue, is budgeted to cover the City’s administrative costs associated with collecting and disbursing the assessment. ALTERNATIVES The City Council may choose to not approve the report or levy the assessment. This action is not recommended as the advisory body has fully reviewed the report and recommended the approval to City Council in order to move forward with the Public Hearing for the Tourism Business Improvement District. Attachments: a - SLOTBID Annual Report 2017–18 b - RESOLUTION OF INTENTION_2018 series_DRAFT c - September 17, 2018 TBID Special Meeting Minutes.DRAFT Packet Pg. 54 Item 10 SLO TBID ANNUAL REPORT 2017–2018 Packet Pg. 55 Item 10 2 SLO TBID Annual Report 2017-18 A Letter from the Chair A LETTER FROM THE CHAIR Wow, what a year! We continue to see increasing TOT collections with the 2017–18 fiscal year being up 1.9% YOY to nearly $7.5m; up over $200k to original forecast. This was in spite of a slight decrease of 0.8% in occupancy in the city to slightly under 71% for the year, pointing to an increase in average rate (up 2.7% to $147.41), and RevPAR (up 1.5%), to substantiate the increase in collections. We have enjoyed great leadership from Matt Wilkins, our immediate past board chair, who continues to play a major role in our direction as an organization. We also want to thank Kimberly Walker as she steps down from her board position to focus on the demands from her growing business. This year, we were fortunate to not have any major issues regarding weather or additional road closures allowing us to focus, along with Visit California and Visit SLO CAL, on the reopening of Highway 1 in late summer. On the other hand, we are quick to welcome our new constituents at La Quinta Inn & Suites San Luis Obispo, Hotel Serra, and Hotel San Luis Obispo in 2019. Our landscape is changing as is the market and our focus on competing with neighbors to the north, south, and west continues. We remain appreciative of the impact our key marketing and social media partners provide in helping us drive visitation to our community in the years to come. With the benefit of past successes like the “Money for a Rainy Day” program, our new focus on the “Be Here” campaign, and the intelligence we gained from market research we did on what drives SLO Tourism are all helping us formulate future marketing strategies to benefit all our hotel partners in the future. This research will also help steer guests to select our destination over other non-SLO municipalities for accommodations. This new and comprehensive strategic vision on behalf of our accommodation partners to help set them up for success is extremely encouraging. Our partnership with Cal Poly and the Office of Student Affairs (NTSP Program, Parent Program and the newly developed SLO Discovery Weekend), along with our VR experience at tradeshows, all position SLO to further lead the region in unique and inspiring marketing programs that are all part of our new 2 year marketing plan taking us from 2018-2020. All of this could not be done without the commitment and dedication of city staff to help provide consistency and support in the board’s efforts to further position SLO as the number one destination on the Central Coast. Sincerely, Bruce Skidmore Embassy Suites by Hilton San Luis Obispo SLO TBID Board Chair Packet Pg. 56 Item 10 3 SLO TBID Annual Report 2017-18 Table of Contents TABLE OF CONTENTS Background on TBID . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Background ............................................4 Advisory Body ..........................................4 2017–18 Advisory Board ..................................4 Advisory Body Bylaws ...................................5 2017-18 Year By the Numbers (TOT) . . . . . . . . . . . . . . . . . . .6 Strategic Plan Implementation Year & Program Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 TBID Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 Snapshot of the Progress ................................8 Branding & Campaign ...................................9 Website ...............................................10 Media .................................................11 Email Marketing ........................................13 Social .................................................14 Public Relations ........................................17 Travel & Tradeshows ....................................18 Special Promotions .....................................19 Guest Services ........................................20 Strategic Partnerships ..................................21 Event Promotion ......................................23 Industry Relations .....................................24 Research .............................................25 2017–18 Financial Statement . . . . . . . . . . . . . . . . . . . . . . . . .27 Income ...............................................27 Expenditures ..........................................28 Looking Ahead to 2018–19 . . . . . . . . . . . . . . . . . . . . . . . . . . .29 Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31 TOT Chart 2017–18 ......................................31 TOT Month-to-Month 2017–18 ............................31 OCC Month-to-Month 2017–18 ..........................32 ADR Month-to-Month 2017–18 ..........................32 RevPar Month-to-Month 2017–18 ........................33 Visitor Personas .......................................34 Packet Pg. 57 Item 10 4 SLO TBID Annual Report 2017-18 Background on TBID BACKGROUND ON TBID BACKGROUND In June 2008 the City Council adopted Ordinance 1517 establishing the tourism business improvement district (TBID) in the City of San Luis Obispo as requested by the local lodging industry. The assessment of two percent of gross receipts for the district became effective on October 1, 2008 and the use of funds was defined in Section 12.42.030 of the Municipal Code as follow: “This ordinance is made and enacted pursuant to the provisions of the Parking and Business Improvement Area Law of 1989 (Sections 36500 et. seq., of the California Streets and Highways Code). The purpose of forming the district as a business improvement area under the Parking and Business Improvement Area Law of 1989 is to provide revenue to defray the costs of services, activities and programs promoting tourism which will benefit the operators of hotels in the district through the promotion of scenic, recreational, cultural and other attractions in the district as a tourist destination.” ADVISORY BODY The use of the assessment fund is based on the recommendation of the Tourism Business Improvement District advisory board that is staffed by City of San Luis Obispo hotel owners, operators, and/or managers. The board members are appointed by the City Council and serve for an initial term of four years with the opportunity to serve second term for a maximum of eight years. 2017-18 ADVISORY BOARD NAME PROPERTY TERM Bruce Skidmore (Chair)Embassy Suites 3/31/21 Kimberly Walker Granada Hotel & Bistro 3/31/21 LeBren Harris Hampton Inn & Suites by Hilton 3/31/21 Nipool Patel Lamplighter Inn & Suites 3/31/20 Pragna Patel-Muller Lexington Inn - SLO 3/31/19 Clint Pearce Madonna Inn 3/31/19 Matthew Wilkins (Past Chair)Sands Inn & Suites 3/31/20 Packet Pg. 58 Item 10 5 SLO TBID Annual Report 2017-18 ADVISORY BODY BYLAWS In addition to the governing City ordinance, the TBID Board established its advisory body bylaws and further defined its role and functions as: The functions and duties of the TBID Board shall include, but not be limited to, the following: A. Planning a comprehensive program to promote tourism to the City of San Luis Obispo and prepare an annual marketing program consistent with industry goals and objectives. B. Develop advertising and promotional programs and projects to benefit the lodging industry in San Luis Obispo. C. Present an annual assessment report to the City Council regarding the implemented promotional programs and projects. D. Perform any other lawful tasks as directed by the Council. The Board meets monthly on the second Wednesday at 10 a.m. for its regular board meeting. In 2017–18, the Board met in 11 regular monthly meetings. Additionally, based on the continued implementation of the TBID 5-year Strategic Plan, the board maintained the standing subcommittees - the Management Committee and the Marketing Committee, each is made up of three board members. The Marketing Committee members also serve on the joint Event Promotion Committee with three members of the Promotional Coordinating Committee to consider event sponsorship commitments. In order to keep the lodging constituency abreast of all TBID business, the Board is assigned properties to laisse. Each board member is responsible for communication with his/her respective group of hotels. Staff continue to visit all properties at least once a year to personally bring TBID updates and marketing opportunities to each property. Background on TBIDPacket Pg. 59 Item 10 6 SLO TBID Annual Report 2017-18 2017-18 Year by the Numbers 2017-18 YEAR BY THE NUMBERS The 2017-18 fiscal year produced continued modest growth in the tourism industry in San Luis Obispo. The City collected nearly $7.5 million dollars (+1.9%) in transient occupancy tax (TOT) continuing the year-over- year trend of producing the largest collection ever recorded for the City of San Luis Obispo. Additionally, the collections slightly exceeded the City’s forecasted growth, which in turn contributed over $200,000 in additional revenue directly into the City’s General Fund. Although the TOT collection was strong for the City in 2017-18, for the second consecutive year the occupancy rate in the City showed a minor decrease (-0.8%) resulting in an average annual occupancy rate slightly under 71% for the year. While the occupancy rate decreased, the Average Daily Rate (ADR) was up 2.7% to $147.41. With the exception of July, every month within the year out rated the same month in the prior year. Additionally, the RevPAR, defined as Revenue Per Available Room, grew by 1.5% to $105.15. This means that although the occupancy was down, the lodging businesses received higher profits based on rate increases with less day-to-day impact on the properties. Additionally, the downtown Visitor Center, operated by the Chamber of Commerce, served nearly 85,000 in person guests. San Luis Obispo lodging properties achieved twenty-nine impacted or near sellout weekends in 2017-18. This is up from twenty-five in 2016-17. 2017-18 YEAR BY THE NUMBERS See the appendix for complete graphs. MEASUREMENT FY 2017-18 RESULT % CHANGE FROM FY 2016-17 TOT $7,498,864 1.9 % Occupancy 70.90 %-0.8 % ADR $ 147.41 2.7 % RevPAR $ 105.15 1.5 % Packet Pg. 60 Item 10 7 SLO TBID Annual Report 2017-18 Strategic Plan Implementation Year & Program Approach STRATEGIC PLAN IMPLEMENTATION YEAR & PROGRAM APPROACH In 2017-18 the TBID continued the focused implementation of the 5-year Strategic Clarity Plan, a document that serves as the framework for the direction and decisions made by the TBID Board for the tourism program. The plan defines the work programs for the TBID and is used as a guide for the decisions made for the overall promotion of San Luis Obispo. Within the plan, the TBID identified five Strategic Imperatives: • Deliver Smart Growth • Develop the SLO Brand • Build Meaningful Partnerships • Contribute to an Unforgettable SLO Experience • Ensure Organizational Excellence Mission The SLO TBID builds awareness to grow tourism, serving as the voice of San Luis Obispo. Values Integrity | Accountability | Adaptability | Collaboration | Determination | Innovation Unique Role of Value The SLO TBID provides the City of SLO with comprehensive tourism brand management through strategic partnerships and a robust marketing and promotional budget. Vision In SLO TBID manages the brand for the destination of San Luis Obispo, delivering balanced growth of tourism, with creativity and integrity. Vision Out San Luis Obispo is an unforgettable place where visitors engage in a unique lifestyle they aspire to, become emotionally attached, and return for renewal. Brand Intention Heart Side: Happy | Pride of Place | Inspiring | Relaxed | Rejuvenating Head Side: Experiential | Beautiful | Artisinal | Healthy | Authentic Strategic Imperatives Deliver Smart Growth | Develop the SLO Brand | Build Meaningful Partnerships | Contribute to an Unforgettable SLO Experience | Ensure Organizational Excellence Unique Value Proposition San Luis Obispo is an authentic and inviting California community where you can play, taste, explore, relax, and recharge. Strategic Clarity The elements of our Strategic Clarity are the SLO TBID’s “North Star” for the upcoming five fiscal years, setting the level of expectation and the tone and tenor of everything we plan. As we move into defining specific initiatives, our Strategic Clarity will serve as a touchstone. Vision In What kind of organizational culture are we committed to being? Vision Out What is the ideal future state we will strive to create? What are we committed to making happen?Mission What is most important to us as we strive to realize our vision? What is the focus of our work?Values What are the fundamental beliefs that shape how we work together to serve our mission? Unique Role of Value What unique and valuable role do we play amongst our peer organizations? HOW do we provide value? Strategic Imperatives What must be accomplished during the planning horizon? Unique Value Proposition What unique and sustainable value does the destination of San Luis Obispo deliver? WHY San Luis Obispo? Brand Intention WHAT is the experience we want our destination to be known for? Mission Values Unique Role of Value Vision In Vision Out Brand Intention Strategic Imperatives Unique Value Proposition Vision In Vision Out Mission Values Unique Role of Value Strategic Imperatives Unique Value Proposition Brand Intention Packet Pg. 61 Item 10 8 SLO TBID Annual Report 2017-18 TBID Activities TBID ACTIVITIES SNAPSHOT OF THE PROGRESS • Deployed “Be Here” campaign • 2017-19 Campaign Production - Radio - 360 Video & Custom VR Goggles - Digital Ads - Print Ads - Photography • Deployed “SLO Welcomes” campaign • Sold Out “Money for a Rainy Day” Promotion • Partnered with Visit SLO CAL on Co-Op placements and Taste Washington booth • Developed Cal Poly Parent & NSTP Program Partnership — SLO Discovery Weekend • New Tradeshow Booth with VR Experience • Partnered with Horizon for a video in Times Square & Canada’s PATH Video Network • Finished first-ever Market Research for SLO tourism efforts • Began developing the first two-year Marketing Plan 2018-2020 In order to implement the complex marketing programs, the TBID Board and staff work closely with the team of contractors including: AMF Media Group (formerly Barnett Cox & Associates) and Matchfire as the marketing agencies on record, and the San Luis Obispo Chamber of Commerce for Public Relations and Guest Service initiatives. Packet Pg. 62 Item 10 9 SLO TBID Annual Report 2017-18 TBID Activities BRANDING & CAMPAIGN The TBID manages the tourism brand for the destination of San Luis Obispo, delivering balanced growth of tourism, with creativity and integrity. The TBID uses the brand messaging pillars outlined below to showcase the unique offerings in San Luis Obispo. San Luis Obispo Brand Messaging Pillars: • Cultural • Culinary • Outdoor • Family • Cal Poly In fiscal year 2017-18, the TBID launched a new marketing campaign titled “Be Here”. The campaign messaging and aesthetic was meant to inspire visitors to feel like their true self in San Luis Obispo. The campaign creative featured statements like “Be inspired here.”, “Be bold here.”, and “Be happy here.” The messaging was accompanied by destination images taken in the first-person perspective with the simple call-to-action of, Be Here. To augment the brand messaging the TBID invested in a series of virtual reality videos. That allowed the prospective visitor to do just that, to virtually be in San Luis Obispo. Packet Pg. 63 Item 10 10 SLO TBID Annual Report 2017-18 WEBSITE www .SanLuisObispoVacations .com The City’s official tourism website, SanLuisObispoVacations.com is the primary marketing tool used to represent our destination. It is designed mainly for consumers, but also serves the travel trade, meeting planners, TBID members and media. It features robust content including a detailed calendar of events integrated with SLO Happenings, lodging property listings for all TBID constituents including hotels and permitted homestay properties, itinerary suggestions and features, the ShareSLO blog, and featured press coverage. Search Engine Optimization (SEO) ensures the relevancy and success of the TBID’s website. Organic search traffic to the site continues to stand as the top traffic channel, making up 33% of site sessions. The work is done monthly to optimize pages with top keywords, meta tags and meta descriptions, and ShareSLO blog posts and social content were created based on forecasted keyword and search trends. As a result, webpages now rank in the top position on Google for San Luis Obispo searches including Bubblegum Alley, SLO Getaway, SLO Happy Hours and Shopping. Key 2017–18 Website Results: • 18% increase in site sessions • 17% increase in average monthly users • 21% increase in referral traffic year-over-year Highlights of Website Activities: • Added 14 new pages and updated over 45 pages • Continued weekly events management • GDPR recommendations & implementation • ADA compliance audit & Implementation • SLO Happenings: proposal & transition TBID Activities 345,728 293,209 260,000 270,000 280,000 290,000 300,000 310,000 320,000 330,000 340,000 350,000 2017-2018 2016-2017 Sessions Packet Pg. 64 Item 10 11 SLO TBID Annual Report 2017-18 MEDIA The TBID paid media focus remained targeted in 2017-18 to dedicated geographic markets including Los Angeles, San Francisco, San Jose and San Diego. In addition, through county coordinated co-op advertising opportunities, the TBID expanded into new flight markets in Denver, Colorado and Seattle, Washington. Paid media was heavily dedicated toward digital display, mobile, email targeting and SEM. Programmatic and behavioral retargeting led to the highest performing campaign to-date. By using geo-proximity targeting in the digital media buy, which uses latitude and longitude to capture mobile device data, the TBID had the ability to capture late bookings and win over the weekend warriors making lodging property decisions while they are traveling near or through the area. The 2017-18 paid media strategy: • Focused on drive markets and new flight markets • Continued the successful digital campaign which includes programmatic, behavioral, email, and geo-proximity targeting & SEM • Increased budget for co-ops through SLO CAL in order to expand reach and maximize dollars • Further experimented with traditional media including print & digital advertorials, visitor guides and FM/streaming radio • Increased video pre-roll placements and decrease length of video TBID ActivitiesPacket Pg. 65 Item 10 12 SLO TBID Annual Report 2017-18 Print Advertising Limited print advertising placements were continued in the TBID’s media mix the 2017-18 fiscal year. Traditional print campaigns are an important tool to reach niche market visitors primarily in the mature demographic and to reinforce travel inspiration and build brand awareness for the destination. For the most part, the TBID placed print ads only in cooperative advertising campaigns with regional partners like Visit SLO CAL and Central Coast Tourism Council (CCTC). • SLO County Visitors Guide • Horizon Travel & Lifestyle Magazine advertorial placed in Wall Street Journal • CCTC Map Outdoor In fiscal year 2017-18, the TBID participated for the second time in an outdoor media advertising opportunity with Horizon Travel. The Board opted to pursue this opportunity again this year based on the success and direct return from the initial run three years ago. • Times Square Video partnership with Horizon - 2,000,000+ Impressions • Canada PATH Video Network partnership with Horizon -3,000,000 Impressions TBID Activities CUMULATIVE DIGITAL ADVERTISING MEASUREMENTS Total Number of Digital Ad Impressions 15,573,582 Total Number of Clicks 509,750 • TripAdvisor • Horizon advertorial (available online) • Programmatic Display & Gmail Targeting • SEM • YouTube video pre-rolls • Pandora • BANG advertorial & digital buy All print and digital advertising is directed toward the website or the toll-free phone number for more information on San Luis Obispo. Digital Media Online programmatic campaigns are the most effective marketing and advertising tool to target the drive markets in California for leisure travelers to San Luis Obispo. The TBID continues to use branded advertising to maximize online reach for the promotion of San Luis Obispo through strategic placement on top travel and lifestyle sites through a programmatic digital advertising program. In 2017-18, the advertising program for the TBID was focused on the mix of digital display that hit key websites to target the right customer, email targeting, and the use of video pre-roll and streaming music services like Pandora. Packet Pg. 66 Item 10 13 SLO TBID Annual Report 2017-18 TBID Activities EMAIL MARKETING The TBID continued to utilize email marketing activities through the newsletter to communicate regularly with potential visitors on activities in SLO to build brand loyalty and encourage repeat visitation and an extended length of stay. The newsletter promotes upcoming events and special promotions as well as compliments our seasonal advertising campaigns and partnerships. This year the TBID continued their focused attention on enhancing their email marketing efforts beyond the monthly newsletter. Their investment in marketing automation continued to garner new email subscribers through the TBID site with over 1,900 new subscribers in 2017–18. They continued the Welcome Series to acknowledge new subscribers which achieved a 57% open rate (compared to industry average of 20%). And they continued the Hotel Page Abandonment series which sent visitors a personalized email if they left hotel pages without taking action. This series achieved a 53% open rate including replied responses seeking additional support or commenting on their trip to the area after receiving the personalized email. Highlights: • 15% increase in database size • 1,930 submitted through new email sign-up form • 5 SLO Vacations’ e-newsletters • 2 ongoing, automated emails based on user behavior • 2 targeted emails for Money for a Rainy Day promotion • 1 targeted email for SLO 360 digital experience • 5 promotional emails for partnerships & events NEWSLETTER ACTIVITY MEASUREMENTS Total Number of Newsletters Sent 17 Database Size 26,744 Packet Pg. 67 Item 10 14 SLO TBID Annual Report 2017-18 TBID Activities SOCIAL This year, the TBID continued to captivate ShareSLO fans and grow their social media footprint through great, engaging content. They continued to leverage user-generated content in 2017-18, along with adding TBID created content including short form videos and a new SLO Welcomes series using #SLOWelcomes. With an emphasis on engaging site content, the TBID drove social traffic to SanLuisObispoVacations.com by linking to relevant content whenever possible. ShareSLO continues to maintain a network of engaged social fans on Facebook, Twitter and Instagram. The total social media engagements across all platforms was 193,834 – with Instagram out performing other channels by early double. The ShareSLO blog, featured on SanLuisObispoVacations.com continues to perform exceptionally well as a source to drive traffic to other sections of the website. In addition to general content each month, the ShareSLO blog featured dedicated campaigns including: SLO in the News, SLO Welcomes, Seasonal Things To Do, Romantic Getaway, Traveling with Kids, Sustainable Travel in SLO. Packet Pg. 68 Item 10 15 SLO TBID Annual Report 2017-18 2017-18 Social Activities Included: • Continued to focus on captivating user generated content and videos, driven by the “local perspective” content strategy • Consistent, daily community management • Cross-promotion on Cal Poly social channels • Collaboration with RaceSLO on Ambassador Toolkit • Launched pilot program with local influencers: Instagram Takeover • Participated in 4 Visit CA sponsored Twitter chats #PassionPassport, #DreamEats, #Kidifornia, #CaliforniaWild • Created & uploaded 9 new videos to ShareSLO’s YouTube channel Pride in the Plaza, Bubblegum Alley, SLO Welcomes, Top 5 Activities for Cal Poly Parents & Supporters, Cheap Eats in SLO Instagram 144,637 Facebook 41,673 Twitter 7,524 193,834 Total Social Media Engagements TBID Activities SHARESLO PROGRAM MEASUREMENTS Total Number of Blog Posts 37 Total Number of Fans 120,350 Total Hashtag Uses (Instagram & Twitter only) 34,847 Total Video Views (YouTube)41,863 Packet Pg. 69 Item 10 16 SLO TBID Annual Report 2017-18 TBID Activities Paid Media Results 2017–18 2016–17 % Change FACEBOOK Website Conversions Link Clicks 130,559 53,887 142% Actions 225,313 150,966 49% Impressions 4,758,629 3,294,166 44% Avg. CTR (All)2.87% 2.26%27% Avg. CTR (Link)2.61% 1.33%96% Promoted Posts Total Reach 712,945 953,384 25% Total Engagements 232,671 102,527 127% Paid Social Media In 2017–18 the TBID continued to invest in paid social media to enhance the effectiveness and reach of the ShareSLO brand on Facebook. Adding a paid element to the posts has helped to expand the reach and increase engagement among ShareSLO fans, followers, and friends. Paid promotion on social media is very cost effective for the TBID and provided the ability to extend the promotion of San Luis Obispo almost year- round. Paid social media included ads to drive website conversation and prompted posts. Packet Pg. 70 Item 10 17 SLO TBID Annual Report 2017-18 PUBLIC RELATIONS In 2017-18, the TBID and PCC continued to jointly hold a contract with the San Luis Obispo Chamber of Commerce for Public Relations efforts. On behalf of the City’s community promotions program, the SLO Chamber is responsible for establishing professional relationships with media outlets and journalists in various markets to build and maintain awareness of San Luis Obispo as a travel destination. The 2017-18 contract elements with the SLO Chamber for Public Relations included: pitching to media, bringing in media, coordinating media trips, sending out media releases, responding to natural media inquiries, use of the Chamber’s photography library for editorial requests and press releases, planning and executing press trips and developing media kits. This focused PR effort continued to prove success for San Luis Obispo. During the 2017-18 fiscal year, the PR activities generated at least 268 total mentions or media placements that highlighted San Luis Obispo in international, national, regional and even local publications. Top media coverage included: New York Times, Guardian, LA Times, Architectural Digest, Seattle Met, Alaska Airlines, National Geographic Explorer, Atlantic, Inc., and Goop. Additionally, coordinated media visits or press trips were secured to promote the destination with the goal of earning valuable editorial coverage. In fiscal year 2017-18, nearly 40 media outlets, both domestic and international were hosted in San Luis Obispo. Best of Lists • Happiest places in the US • Most charming towns & small cities in CA • Most tourist-friendly cities in the U.S. • Cities that can survive an apocalypse • Great CA fall trips • Secret Wine Country Escapes • Thanksgiving weekend getaways to take this year • Most Underrated City in California • Most joyful places to spend the holidays in the U.S. • Must-visit stops in northern CA • The world’s sexiest destinations • Top brewery visits of 2017 • College towns that parents won’t want to leave • CA’s best adventure towns • Best small towns to visit on a road trip of America • Most Underrated Stops on Your California Road Trip TBID Activities PUBLIC RELATIONS MEASUREMENTS Number of Mentions 268 Potential Reach 893,256,039 Packet Pg. 71 Item 10 18 SLO TBID Annual Report 2017-18 TRAVEL & TRADESHOWS Consumer Travel Shows The TBID continues to maximize the consumer travel show strategy. Consumer shows provide the TBID an opportunity to take San Luis Obispo on the road to key markets. In 2017-18 four consumer tradeshows were attended – two as San Luis Obispo initially and two in cooperation with other regional partners. The two individual shows were the San Diego Travel & Adventure Show and the Denver Travel & Adventure Show, and the two cooperative shows were Los Angeles Magazine Food Event in partnership with SLO Wine Association and Taste Washington with Visit SLO CAL. At these shows, the booth featured key information on San Luis Obispo including lodging information, maps and upcoming events – and showcased the new virtually reality experience for San Luis Obispo. Shows were selected based on their anticipated attendance, quality of attendees, and target drive and fly market location. Booth visitors were presented with the opportunity to enter to win a SLO Getaway sweepstakes. TBID Activities CONSUMER TRADE SHOW MEASUREMENTS Number of Shows Attended 4 Newsletter Registrations Collected 1,229 Industry Tradeshows For the second consecutive year, 2017–18 the TBID participated in the industry tradeshow IPW. The U.S. Travel Association’s IPW is the travel industry’s premier international marketplace and the largest generator of travel to the U.S. The TBID had previously participated in 2011 and 2012 but had since declined to focus on consumer only efforts. However, starting in 2017 and again in 2018, the TBID Board made a strategic decision to partner with Visit SLO CAL at the show. During the three-day show booked with intensive pre-scheduled business appointments, the TBID met with over 55 representatives interested in booking travel to San Luis Obispo. Packet Pg. 72 Item 10 19 SLO TBID Annual Report 2017-18 SPECIAL PROMOTIONS Money for a Rainy Day In 2017-18, the TBID Board ran for the third year a special promotional offer designed to drive overnight stays in the City of San Luis Obispo during the slowest months of the year. Through the promotion, visitors were required to book two consecutive nights at a lodging property in the City of San Luis Obispo between January – March 2018 and they would receive a $100 cash to spend how they choose. As a result, the promotion garnered 1,192 room nights during January through March. TBID ActivitiesPacket Pg. 73 Item 10 20 SLO TBID Annual Report 2017-18 TBID Activities GUEST SERVICES Through a dedicated contract with the TBID, the San Luis Obispo Chamber of Commerce provides a suite of guest services to the TBID. In 2017-18 this included: • Provide dedicated customer service for San Luis Obispo City hotels at the Downtown Visitor Center. • Provide a 800-number separate phone line exclusively for the TBID. Only SLO TBID properties will be recommended through this phone line. Provide staff to respond to a TBID-only phone line during Visitor Center Hours and return after hours phone calls. • Provide dedicated customer service on SanLuisObispoVacations.com with a Live Chat feature. *Trialed from August to October • Perform “hotel availability call arounds” and keep a record of current availability for all SLO City hotels. • Educate local hoteliers about the hotel availability program and how they may best utilize it. During fiscal year 2017-18, Visitor Center staff contacted every TBID property each week and maintained a record of which hotels were sold out and which have availability for each Thursday, Friday and Saturday as well as impacted weekdays throughout the year to help guests, who would otherwise need to call each property on their own to find a room in SLO. This service also allowed for TBID properties to refer their clients directly to the Visitor Center for centralized guest services. In addition, this information was widely utilized to assist visitors to the Visitor Center in keeping the traveler in the City of San Luis Obispo. Since July, 2017, the Chamber was able to make use of this availability information in conjunction with TBID marketing materials to refer SLO TBID properties nearly 15,000 times. In addition, the Chamber is contracted to answer each call made to the TBID’s 1-877-SLO-TOWN number, which is serves as a response tool to the TBID’s advertising efforts and digital presence. This creates the option for a ‘real person’ to assist in trip planning, ensuring that travelers seeking personal guidance have a friendly, live voice to shape their experience of San Luis Obispo before even arriving. The telephone number, 1-877-SLO-TOWN, is a separate line that rings in the Chamber and is used solely to refer and promote TBID properties. During fiscal year 2017-18 over 990 calls were answered on the 1-877-SLO-TOWN line, an increase of 9% over the prior year. Much of this is attributed to the seasonal promotions and fulfilment. Packet Pg. 74 Item 10 21 SLO TBID Annual Report 2017-18 STRATEGIC PARTNERSHIPS The TBID collaborates with numerous community partners and industry nonprofit organizations in marketing San Luis Obispo as a destination which makes the TBID more efficient in promotional activities. The TBID’s strategic partnerships allow the marketing agencies to build relationships with the organizations below, elevating the destination as a whole. Promotional opportunities with each organization give the TBID new platforms and audiences to build brand awareness. Top partnerships achievements include: Cal Poly Athletics • TBID maintains the exclusive hotel industry sponsor to advertise with Cal Poly Athletics • TBID hosted nearly 605 room nights for visiting teams, recruits, and coaches • ShareSLO first pitch throws at Cal Poly baseball games • CP Athletics Facebook page posts • Banner ad in ongoing Athletics newsletters • Cal Poly Alumni E-blast & Alumni Getaway Giveaway • Radio spots for basketball • Homecoming game ticket giveaway • New rotating graphics submitted for LED banner at Mott Gym • Soccer Visiting Teams Guide • ShareSLO Track & Field Meet • Program ad • :15 scoreboard video using new footage SLO Wine • Deployed e-newsletters to over 12,000 subscribers that included TBID content, logo, and links • Hosted travel, lifestyle, wine writers in San Luis Obispo for various media visits resulting in media coverage in: Wine Enthusiast, SF Gate & SF Chronicle, USA Today, LA Time, 805 Living, Chicago Tribune • The “Stay” page on SLOwine.com garnered over 30,000 views • Partnered to host an integrated marketing experience at LA Magazine’s The Food Event in October 2017 • Public Relations outreach efforts resulted in Wine Enthusiast naming SLO Top 10 Wine Destination in the World TBID ActivitiesPacket Pg. 75 Item 10 22 SLO TBID Annual Report 2017-18 STRATEGIC PARTNERSHIPS (CONT .) Cal Poly Office of Student Affairs: Parent Program & New Student and Transition Program Cal Poly New Student & Transition Programs (NSTP) sees over 50,000 guests of students and their families between Open House, Student Life Orientation Days, and Week of Welcome annually. Through this partnership in 2017-18, the TBID partnered with NSTP to engage and connect with our new students and their families from the college acceptance time to orientation. In addition to website presence and logo inclusion, the TBID activations include representation at the following events: • Open House • SLO Days • Week of Welcome/Move-in Weekend The Cal Poly Parent Program strategic partnership was a new for 2017-18. The TBID together with the Parent Program created a series of new events called SLO Discovery Weekends that provide intimate weekend gatherings in SLO for small groups of parents and families. During the pilot year, two SLO Discovery Weekend sessions were held. TBID ActivitiesPacket Pg. 76 Item 10 23 SLO TBID Annual Report 2017-18 EVENT PROMOTION In 2017–2018, the TBID sponsored, promoted, and was represented at local events of different shapes and sizes. Over the course of the year, the TBID continued to shape an event strategy to ensure all SLO TBID- sponsored events are well-aligned with the brand, and that expectations and best practices were clear. These guidelines allowed the TBID to reach visitors before, during, and after an event takes place, which in turn arms the TBID with the tools we need to leverage events to put heads in beds. In 2017–18, the TBID continued their approach to supporting a few of the sponsored events through agency support in campaign development, creative and media buys. Instead of simply funding out-of-area marketing, the TBID dedicated their sponsorship dollars along with the marketing agency time to help create and manage the out-of-area promotional campaigns. This strategy was successful for the TBID and the events. TBID Sponsored Events: • SLO Craft Beer Fest • SLO Wine Roll Out the Barrels • SLO Marathon & Half • Festival Mozaic’s Winter Mezzo • SLO Film Fest • Sustainable Ag Expo • Mission College Prep Winter Classic • Battle of the West - Grass Volleyball Tournament TBID Activities EVENT SPONSORSHIP MEASUREMENTS Number of Events Sponsored 7 Estimated Total Number of Event Attendees Reached through Sponsorship 20,000 Total Sponsorship Investment $ 118,000 Packet Pg. 77 Item 10 24 SLO TBID Annual Report 2017-18 INDUSTRY RELATIONS Visit California The Visit California partnership has been critical in the growth of our brand within the California Tourism product. San Luis Obispo has received coverage though the marketing activities performed by Visit California including travel trade, press, and industry outreach. Monthly submissions are uploaded to Visit California for media outreach, trade contacts, and newsletter content. Additionally the TBID maintains ongoing coordination to keep City of San Luis Obispo destination page up to date. ShareSLO also participated in Visit California sponsored Twitter chats. The TBID attended the Visit California Outlook Forum educational event in the spring. Central Coast Tourism Council The Central Coast Tourism Council (CCTC) is an organization of tourism and hospitality professionals whose marketing efforts accomplish collectively what no single tourism entity can do alone—promote the entire California Central Coast as a destination and maximize our members’ tourism revenue. The CCTC serves as the Central Coast’s voice in Sacramento, and partners with California Tourism’s global marketing and advertising campaigns. The TBID is actively involved in CCTC with the Tourism Manager as the President and Regional Board Member. In 2017-18, the TBID leveraged the CCTC activities through media and trade leads, blog and social presence, and international outreach. SLO CAL The TBID maintains participation with SLO CAL by having two representatives on the Board of Directors and the Tourism Manager on the Marketing Committee. The TBID Board leverages the partnership with Visit SLO CAL to promote San Luis Obispo on a national and international level- beyond the local and state reach the TBID’s marketing plan focus to achieve. The TBID’s participation in Visit SLO CAL also encompasses group sales, film commission, county-wide public relations, and county-wide special events like Restaurant Month and Wine Month. In 2017–18, the TBID partnered with Visit SLO CAL on many initiatives including: participation in IPW, Taste Washington, cooperative research studies, and social retargeting co-op ads. TBID ActivitiesPacket Pg. 78 Item 10 25 SLO TBID Annual Report 2017-18 SLO TBID Annual Report 2017-18 RESEARCH In 2017–18 the TBID invested in various research projects to better understand the visitor impact and behavior in San Luis Obispo. Visitor Volume & Economic Impact Through a partnership with Visit SLO CAL, the TBID invested in a study to identify the annual volume of visitors to the city of San Luis Obispo and the economic impact those visitors. The study concluded that tourism is a major contributor to the San Luis Obispo economy. In 2017, the 1.4 million visitors to San Luis Obispo spent $338 million in the city – with a total economic impact of $438 million in direct, indirect and induced impacts. Visitor spending generates income, jobs, and tax revenue. Since 2014, visitor spending has increased by 9.1% in the city of San Luis Obispo. In 2017, the city welcomed 1.4 million visitors to San Luis Obispo. The study shows that overnight visitors outpaced day visitors in 2017, to nearly 1 million visits a 4.8% growth, while day visitors increased 1% registering 500,000 visits. Altogether, since 2014 the total visits to San Luis Obispo have increased by 7.2%. 27% 23%19% 9% 8% 14% Source: Tourism Economics $93m of spending on Lodging $339m in total visitor spending $79m of spending on Food and beverage $46m of spending on Local transportation $30m of spending on Recreation Visitor spending in San Luis Obispo, 2017 Dollars, millions and percent of total $64m of spending on Retail $27m of spending on manufacturing (wineries) Visitor spending in San Luis Obispo | Tourism Economics 13 Visitors to San Luis Obispo spent nearly $338.4 million in 2017. Note: Lodging spending includes dollars spent on second homes Packet Pg. 79 Item 10 26 SLO TBID Annual Report 2017-18 SLO TBID Annual Report 2017-18 RESEARCH (CONT .) Market Research In the spring of 2018, the TBID completed a comprehensive market research report with the goal to determine: 1. If SLO City is losing visitors to neighboring destinations in SLO County 2. Find out why people visit SLO City 3. Determine what channels visitors are using to make travel decisions 4. Segment our visitors into personas to better understand where more opportunity exists within our target demographic The methodology included 200 intercepts surveys in San Luis Obispo, Pismo Beach and Paso Robles; 800 online surveys targeted in drive markets to people who have visited SLO County; 200 Denver and 200 Seattle online surveys to assess awareness and intent to travel; and persona segmentation on more than 20,000 people who have expressed interest in visiting SLO by signing up for our email database. From the research, the TBID inferred the following: that the city is losing some heads in beds to neighboring beach- front destinations and to Paso Robles for wine/culinary focused visitors; surveys showed a general lack of awareness of our destination, or lack of awareness of activities within our destination; and results showed a lack of consideration of SLO as a vacation destination. With this information, the TBID is poised to adjust the marketing strategy to differentiating the SLO experience and focusing on targeted personas to increase the share of visitors who are specifically interested in what San Luis Obispo has to offer. The City of San Luis Obispo visitor… • Travel as couples • Median age 44.5 • 73% college graduates • 38% have HHI of $150K+ per year • Majority travel without children See appendix for detailed persona information Packet Pg. 80 Item 10 27 SLO TBID Annual Report 2017-18 2017-18 FINANCIAL STATEMENT 2017-18 Financial Statement INCOME SOURCE 2017–18 TOT Revenue Assumption (Revised with Supplement)$7,294,000 TBID Assessment (20% of TOT Revenue) $1,458,800 2016–17 Requested Carryover $100,000 2016–17 Fund Balance $332,800 TBID Fund Reserve $100,000 TBID Program Budget $1,891,600 INCOME Packet Pg. 81 Item 10 28 SLO TBID Annual Report 2017-18 SLO TBID Annual Report 2017-18 EXPENDITURE ALLOCATED Operations/Staffing Administration Overhead (2% of TBID Assessment)$29,176 Staffing (1 FTE & .75 FTE)$215,000 Contracts & Marketing Projects AMF/Matchfire - Marketing Contract $833,700 Chamber of Commerce - Public Relations $51,000 Chamber of Commerce - Guest Services $42,000 Chamber of Commerce - Media Monitor $8,400 CCTC Black Diamond Co-op $1,200 FAM Trip Hosting (Media & Influencers)$11,000 AMF/Matchfire - Events Calendar Development $41,000 AMF/Matchfire - Promotional & Collateral Items $30,500 Partnerships Cal Poly Athletics $96,500 SLO Wine $18,000 SLO Wine Rooms $3,000 Cal Poly Student Affairs $20,000 Events Promotion General Events Promotion $120,500 Event Activation $2,000 Tradeshows Tradeshows & Travel Shows $45,000 Tourism Conferences $6,000 Tourism Organizations/Research Central Coast Tourism Council Membership $1,000 Smith Travel Report $3,000 Marketing & Persona Research Project $58,800 Support/Meetings Tourism Program Expenses $7,000 Total Allocated Expenditure $1,643,776 *This figure represents the total allocated expenditures. The difference will be available for carryover to the 2018-19 program budget. EXPENDITURES Packet Pg. 82 Item 10 29 SLO TBID Annual Report 2017-18 Looking Ahead to 2018-19 LOOKING AHEAD TO 2018–19 As the TBID moves into 2018–19, the Board is committed to the continued implementation of the final components of the 5-year Strategic Clarity Plan. In the next fiscal year, the Board will work through the process to review the accomplishments of the current plan and complete the develop of the next TBID Strategic Plan. The TBID will also begin the implementation of the new two-year marketing plan. Although it’s a year, AMF and Matchfire will thoroughly review, modify and update the plan each fiscal year as needed to ensure the TBID marketing efforts remain relevant and effective. It is imperative to acknowledge trends, be observant of growth or decline and make changes according to the current tourism climate on an ongoing basis. The SLO TBID Marketing Plan coupled with the SLO TBID Strategic Clarity Plan provides a foundation for building the City of SLO tourism brand and establishing real tactics for consistently improving tourism in the City of San Luis Obispo. The highest priority Strategic Clarity Plan initiatives for the 2018–2019 fiscal year, continue to be: • Deliver Smart Growth • Develop the SLO Brand • Build Meaningful Partnerships • Contribute to an Unforgettable SLO Experience Packet Pg. 83 Item 10 30 SLO TBID Annual Report 2017-18 Looking Ahead to 2018–19 LOOKING AHEAD TO 2018–19 (CONT .) The key program activities include: • Implementation of the 2018-20 Marketing Plan • Address the research findings by shifting our targeting, both geographically, demographically and psychographically, and incorporating a more focused message surrounding things to do in SLO • Grow new geographic markets including Seattle • Add assets to the campaign library, including additional first-person photography and a new first- person tourism video • Better target new audiences with relevant content and reengage existing audiences with relevant content to create repeat visitors • Create and deploy an influencer marketing strategy that shares real-time, authentic SLO experiences with social media audience • Integrate SLO Happenings as part of the ShareSLO campaign making it an ongoing weekly inclusion in editorial calendars • Leverage dedicated promotions funds to attract fall and winter stays and set aside funds for special opportunities to attract specific audiences out of market In addition, the TBID is looking forward to growing the district membership, to include new hotel properties coming into the City of San Luis Obispo. Packet Pg. 84 Item 10 31 SLO TBID Annual Report 2017-18 Appendix APPENDIX TOT CHART 2017-18 TOT MONTH TO MONTH 2017-18 0 20 40 60 80 100 2017-182016-17 JunMayAprMarFebJanDecNovOctSeptAugJuly 0 200000 400000 600000 800000 1000000 2017-182016-17 JunMayAprMarFebJanDecNovOctSeptAugJuly 0 1000000 2000000 3000000 4000000 5000000 6000000 7000000 8000000 2017-182016-172015-162014-152013-142012-132011-122010-112009-102008-09 0 20 40 60 80 100 2017-182016-17 JunMayAprMarFebJanDecNovOctSeptAugJuly 0 200000 400000 600000 800000 1000000 2017-182016-17 JunMayAprMarFebJanDecNovOctSeptAugJuly 0 1000000 2000000 3000000 4000000 5000000 6000000 7000000 8000000 2017-182016-172015-162014-152013-142012-132011-122010-112009-102008-09 Packet Pg. 85 Item 10 32 SLO TBID Annual Report 2017-18 Appendix OCC MONTH TO MONTH 2017-18 ADR MONTH TO MONTH 2017-18 0 20 40 60 80 100 2017-182016-17 JunMayAprMarFebJanDecNovOctSeptAugJuly 0 2000004000006000008000001000000 2017-182016-17 JunMayAprMarFebJanDecNovOctSeptAugJuly 010000002000000300000040000005000000600000070000008000000 2017-182016-172015-162014-152013-142012-132011-122010-112009-102008-09 0 30 60 90 120 150 2017-182016-17 JunMayAprMarFebJanDecNovOctSeptAugJuly 0 50 100 150 200 2017-182016-17 JunMayAprMarFebJanDecNovOctSeptAugJuly Packet Pg. 86 Item 10 33 SLO TBID Annual Report 2017-18 Appendix REVPAR MONTH TO MONTH 2017-18 0 30 60 90 120 150 2017-182016-17 JunMayAprMarFebJanDecNovOctSeptAugJuly 0 50100150200 2017-182016-17 JunMayAprMarFebJanDecNovOctSeptAugJuly Packet Pg. 87 Item 10 34 SLO TBID Annual Report 2017-18 Appendix TRAVEL AS COUPLES The City of San Luis Obispo Visitor…VISITOR PERSONAS MEDIAN AGE 44.5 Age breakdown nearly even between U–35, 35–54, 55+ 73% COLLEGE GRADUATES 38% HAVE HHI OF $150K+ PER YEAR MAJORITY TRAVEL WITHOUT CHILDREN YOUNG DIGERATI UPPER CRUST The residents of Money & Brains seem to have it all—high incomes, advanced degrees, and sophisticated tastes to match their credentials. Many of these city dwellers are married couples with few children who live in fashionable homes on small, manicured lots with expensive cars in the driveway. Movers & Shakers are America's business class, a wealthy suburban world of dual income couples who are highly educated, typically between the ages of 45-64. Given its high percentage of executives and white collar professionals, there's a decided business bent to this segment as they enjoy reading business publications and visits to business oriented websites. Young Digerati are tech-savvy and live in fashionable neighborhoods on the urban fringe. Auent and highly educated, Young Digerati communities are typically filled with trend apartments and codos, fitness clubs and clothing boutiques, casual restaurants and all types of bars, from juice to coee to microbrew. Many have chosen to start families while remaining in an urban environment. The nation's most exclusive address, Upper Crust is a haven for wealthy empty-nesting couples over the age of 65. This segment has a high concentration of residents earning over $100k per year, and many posess a post-graduate degree. They have an oppulant standard of living—driving expensive cars and frequently eating out and traveling. Why Money & Brains matter for SLO… There are more Money & Brains residents in California than anywhere else in the United States, and they happen to live just a quick drive away in the Bay Area. They’re familiar with SLO and make up the largest portion of our interest list to-date. They may have attended Cal Poly, and perhaps their kids did, too. But now that they’re empty nesters, this group is ready to travel and has money to spend. They’re likely to put SLO on the list for its cultural and culinary experiences, and it’s just a short distance from home. Why Movers & Shakers matter for SLO… This business class has the most disposable income of SLO’s top 4 personas. They make up the second largest group in our interest database, and there’s good reason: Movers & Shakers are just a hop, skip, and a jump away in Marin County. They’re mostly empty nesters, but may have some older children in the house who aren’t likely to travel with them. Highly educated, the Movers & Shakers are looking for new experiences, and SLO has everything to oer them. Why Young Digerati matter for SLO… These auent 40-somethings lead busy lives, and want a getaway that’s quick, easy, and somewhat familiar. They’ll likely have kids in tow when they make their way from the Bay Area, and will need kid-friendly suggestions for restaurants, breweries, wineries, and other things to do. They travel to explore together, prioritizing experiences the whole family can enjoy over kids-only attractions. They’ll seek the outdoors, new and hip things to do, and photo-worthy moments with their loved ones. Why Upper Crust matter for SLO… Upper Crust residents have seen and done it all: they want to go where the crowds don’t go, and collect intimate moments, not Instagram photos. They’ll be looking for a laid back but sophisticated experience, which is just what SLO has to oer. Culinary, wine (specifically chardonnay), shopping and culture will appeal to this class. And if they come with friends, a round of golf may also be on the agenda. MONEY & BRAINS MOVERS & SHAKERS Reasons for Visiting… Family Trip or Getaway Weekend Relaxation, Weather, Restaurants, Scenery, Sightseeing, Outdoor Activities Attractions: Downtown, Mission Plaza, Creek Walk, Bubblegum Alley, Cal Poly, Hiking Biking Trails Proximity to the coast or visit new place Cross Visits… MORRO BAY Intercept interviews in City of SLO indicated that visitors may stay in Morro Bay, although visit SLO Of other destinations to visit, Morro Bay ranked highest, followed by Avila Beach and Pismo Beach Words/Phrases Used to Describe SLO… Beautiful 55%—Appears in Brand Intention Relaxing 10%—Appears in Brand Intention Friendly 8% Fun Peaceful Serene Online Survey: Beautiful, Picturesque, Relaxing, Fun, College Town, Quaint, Peaceful, Serene, Friendly Midlife success HHI $128k, 35-54, mostly with kids in household Highest index in San Francisco and Santa Clara Counties Listens to CBS radio Watches football and basketball Reads print edition New York Times and uses iPhone Auent, empty nests HHI $113k, mostly without kids in household Highest Index in Marin County Listens to news radio, classical, jazz Reads print edition of Wall Street Journal and New York Times Watches Fox Business Network and Golf Channel Auent, empty nests HHI $129k+, age 45-64, mostly without kids in household Highest index in Marin County Listens to news radio, CBS sports, adult alternative and talk/personality Reads newspaper on iPad Reads Wall Street Journal and New York Times Auent, empty nests HHI $105k, Age 55+, mostly without kids in household Highest index in San Mateo, San Francisco, Santa Clara Listens to news radio, jazz and classical Reads New York Times, paper edition, and Wall Street Journal Watches basketball Packet Pg. 88 Item 10 35 SLO TBID Annual Report 2017-18 SLO TBID Annual Report 2017-18 TRAVEL AS COUPLES The City of San Luis Obispo Visitor…VISITOR PERSONAS MEDIAN AGE 44.5 Age breakdown nearly even between U–35, 35–54, 55+ 73% COLLEGE GRADUATES 38% HAVE HHI OF $150K+ PER YEAR MAJORITY TRAVEL WITHOUT CHILDREN YOUNG DIGERATI UPPER CRUST The residents of Money & Brains seem to have it all—high incomes, advanced degrees, and sophisticated tastes to match their credentials. Many of these city dwellers are married couples with few children who live in fashionable homes on small, manicured lots with expensive cars in the driveway. Movers & Shakers are America's business class, a wealthy suburban world of dual income couples who are highly educated, typically between the ages of 45-64. Given its high percentage of executives and white collar professionals, there's a decided business bent to this segment as they enjoy reading business publications and visits to business oriented websites. Young Digerati are tech-savvy and live in fashionable neighborhoods on the urban fringe. Auent and highly educated, Young Digerati communities are typically filled with trend apartments and codos, fitness clubs and clothing boutiques, casual restaurants and all types of bars, from juice to coee to microbrew. Many have chosen to start families while remaining in an urban environment. The nation's most exclusive address, Upper Crust is a haven for wealthy empty-nesting couples over the age of 65. This segment has a high concentration of residents earning over $100k per year, and many posess a post-graduate degree. They have an oppulant standard of living—driving expensive cars and frequently eating out and traveling. Why Money & Brains matter for SLO… There are more Money & Brains residents in California than anywhere else in the United States, and they happen to live just a quick drive away in the Bay Area. They’re familiar with SLO and make up the largest portion of our interest list to-date. They may have attended Cal Poly, and perhaps their kids did, too. But now that they’re empty nesters, this group is ready to travel and has money to spend. They’re likely to put SLO on the list for its cultural and culinary experiences, and it’s just a short distance from home. Why Movers & Shakers matter for SLO… This business class has the most disposable income of SLO’s top 4 personas. They make up the second largest group in our interest database, and there’s good reason: Movers & Shakers are just a hop, skip, and a jump away in Marin County. They’re mostly empty nesters, but may have some older children in the house who aren’t likely to travel with them. Highly educated, the Movers & Shakers are looking for new experiences, and SLO has everything to oer them. Why Young Digerati matter for SLO… These auent 40-somethings lead busy lives, and want a getaway that’s quick, easy, and somewhat familiar. They’ll likely have kids in tow when they make their way from the Bay Area, and will need kid-friendly suggestions for restaurants, breweries, wineries, and other things to do. They travel to explore together, prioritizing experiences the whole family can enjoy over kids-only attractions. They’ll seek the outdoors, new and hip things to do, and photo-worthy moments with their loved ones. Why Upper Crust matter for SLO… Upper Crust residents have seen and done it all: they want to go where the crowds don’t go, and collect intimate moments, not Instagram photos. They’ll be looking for a laid back but sophisticated experience, which is just what SLO has to oer. Culinary, wine (specifically chardonnay), shopping and culture will appeal to this class. And if they come with friends, a round of golf may also be on the agenda. MONEY & BRAINSMOVERS & SHAKERS Reasons for Visiting… Family Trip or Getaway Weekend Relaxation, Weather, Restaurants, Scenery, Sightseeing, Outdoor Activities Attractions: Downtown, Mission Plaza, Creek Walk, Bubblegum Alley, Cal Poly, Hiking Biking Trails Proximity to the coast or visit new place Cross Visits… MORRO BAY Intercept interviews in City of SLO indicated that visitors may stay in Morro Bay, although visit SLO Of other destinations to visit, Morro Bay ranked highest, followed by Avila Beach and Pismo Beach Words/Phrases Used to Describe SLO… Beautiful 55%—Appears in Brand Intention Relaxing 10%—Appears in Brand Intention Friendly 8% Fun Peaceful Serene Online Survey: Beautiful, Picturesque, Relaxing, Fun, College Town, Quaint, Peaceful, Serene, Friendly Midlife success HHI $128k, 35-54, mostly with kids in household Highest index in San Francisco and Santa Clara Counties Listens to CBS radio Watches football and basketball Reads print edition New York Times and uses iPhone Auent, empty nests HHI $113k, mostly without kids in household Highest Index in Marin County Listens to news radio, classical, jazz Reads print edition of Wall Street Journal and New York Times Watches Fox Business Network and Golf Channel Auent, empty nests HHI $129k+, age 45-64, mostly without kids in household Highest index in Marin County Listens to news radio, CBS sports, adult alternative and talk/personality Reads newspaper on iPad Reads Wall Street Journal and New York Times Auent, empty nests HHI $105k, Age 55+, mostly without kids in household Highest index in San Mateo, San Francisco, Santa Clara Listens to news radio, jazz and classical Reads New York Times, paper edition, and Wall Street Journal Watches basketball Packet Pg. 89 Item 10 RESOLUTION NO. XXXX (2018 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, DECLARING ITS INTENTION TO CONTINUE THE SAN LUIS OBISPO TOURISM BUSINESS IMPROVEMENT DISTRICT, TO CONTINUE THE BASIS FOR AND TO LEVY THE ASSESSMENT FOR THE DISTRICT, AND TO SET A DATE FOR THE PUBLIC HEARING ON THE DISTRICT AND THE ASSESSMENT FOR 2018-19 WHEREAS, the Parking and Business Improvement Law of 1989, sections 36500 et seq. of the Streets and Highways Code, authorizes cities to establish business improvement districts for several purposes, one of which is promotion of tourism; and WHEREAS, the lodging businesses within the proposed City of San Luis Obispo Tourism Business Improvement District had requested the City of San Luis Obispo establish such a self- assessment improvement district in 2008; and WHEREAS, the San Luis Obispo Tourism Business Improvement District was established in July 2008 and incorporated into the Municipal Code under Chapter 12.42; and WHEREAS, the assessment went into effect on October 1, 2008; and WHEREAS, the City Council appointed an advisory board to provide oversight, guidance, and recommendations regarding the use of the assessment funds; and WHEREAS, the City Municipal Code and the Parking and Business Improvement Law require the advisory board to prepare and submit an annual report stating proposed changes, improvements and activities for the fiscal year; and WHEREAS, notices regarding the approval of the annual report were sent on September 21, 2018 to all assessed properties. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows: a) That the Tourism Business Improvement District Annual Report for fiscal year 201 7- 18 as filed by the advisory body is hereby approved. b) The San Luis Obispo City Council proposes to continue the established Tourism Business Improvement District in the City of San Luis Obispo in accordance with City Municipal Code Chapter 12.42 and the California Streets and Highways Code, sections 36500 et seq. (Parking and Business Improvement Law of 1989). Packet Pg. 90 Item 10 Resolution No. _____ (2018 Series) Page 2 R ______ c) The assessment levied by the Tourism Business Improvement District shall be used to promote lodging at the hotels within the district and administer a marketing program that increases overnight hotel stays pursuant to the set goals. d) The assessment will be levied and allocated by the City of San Luis Obispo. e) The assessment is proposed to be levied on all “hotels”, as that term is defined in San Luis Obispo Municipal Code section 3.04.020, to wit: any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof. f) The assessment shall be based on two percent (2%) of gross room rent. g) New hotels shall not be exempt from immediate assessment. h) The public hearing, held pursuant to the City Municipal Code Chapter 12.42 and the Parking and Business Improvement Law of 1989, section 36535 of the Streets and Highways Code, is to allow for comments on the District and proposed assessment, and is hereby set for 6 P.M., Tuesday, October 16, 2018, before the City Council of San Luis Obispo at the City Council Chambers at 990 Palm Street, San Luis Obispo, California. i) At the public hearing, the testimony of all interested persons for or against the continuation of the District, the boundaries of the District, or the furnishing of specified types of improvements or activities will be heard. j) Any protest against the continuation of the City of San Luis Obispo Tourism Business Improvement District and the levying of the assessment, or any aspect thereof, may be made in writing. A protest may be withdrawn at any time before the conclusion of the public hearing. Any written protest shall contain a description of the business in which the person signing the protest is not shown on the official records of the City of San Luis Obispo as the owner of the business, then the protest shall contain or be accompanied by written evidence that the person is the owner of the author ized representative of the business. Any protest as to the regularity or evidence of the proceedings shall be in writing and clearly state the irregularity or defect to the City of San Luis Obispo at 990 Palm Street, San Luis Obispo, CA 93401. k) If, at the conclusion of the public hearing, there are of record, written protests by the owners of businesses within the proposed San Luis Obispo Tourism Business Improvement District that will pay fifty percent (50%) or more of the total assessments of the entire San Luis Obispo Tourism Business Improvement District, no further proceedings to continue the San Luis Obispo Tourism Business Improvement District shall occur. New proceedings to form the San Luis Obispo Tourism Business Packet Pg. 91 Item 10 Resolution No. _____ (2018 Series) Page 3 R ______ Improvement District shall not be undertaken again for a period of at least one (1) year from the date of the finding. If the majority of written protests are only as to an improvement or activity proposed, then that type of improvement or activity shall not be included in the San Luis Obispo Tourism Improvement District. BE IT FURTHER THEREFORE RESOLVED, the City Clerk is instructed to provide notice as required by the City Municipal Code Chapter 12.42 and the Parking and Business Improvement Law of 1989, section 36534, subpart (a)(7) of t he Streets and Highways Code, to wit: the City Clerk shall give notice of the public hearing by causing the resolution of intention to be published once in a newspaper of general circulation in the City no less than seven days before the public hearing. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 201 8. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ______ day of ______________, _________. ______________________________ Teresa Purrington City Clerk Packet Pg. 92 Item 10 Minutes – Tourism Business Improvement District Board Meeting of August 9, 2017 Page 1 DRAFT Minutes TOURISM BUSINESS IMPROVEMENT DISTRICT BOARD Monday, September 17, 2018 Special Meeting Tourism Business Improvement District Board CALL TO ORDER A Special Meeting of the Tourism Business Improvement District Board was called to order on Monday, September 17, 2018 at 8:08 a.m. in the Council Hearing Room, located at 990 Palm Street, San Luis Obispo, California, by Chair Skidmore. ROLL CALL Present: Board Members Chair Bruce Skidmore, LeBren Young-Harris, Dean Hutton and Vice Chair Matthew Wilkins Absent: Board Members Pragna Patel-Mueller, Clint Pearce, and Nipool Patel Staff: Tourism Manager Molly Cano, Tourism Coordinator Chantal Burns PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA None. OATH OF OFFICE Dean Hutton was sworn in. CONSENT AGENDA ACTION: MOTION BY BOARD MEMBER WILKINS, SECOND BY BOARD MEMBER HARRIS, CARRIED 4-0, to approve the Consent Calendar Items C1 through C6. C1. Minutes of Special Meeting on Monday, August 20, 2018 C2. Smith Travel Report C3. Chamber Public Relations Report C4. AMF + Matchfire Marketing Report C5. Chamber Visitor Center Report C6. Transit Occupancy Tax (TOT) Report Packet Pg. 93 Item 10 DRAFT Minutes – Tourism Business Improvement District Board Meeting of September 17, 2018 Page 2 PRESENTATIONS 1. Marketing Agency Monthly Report Representatives from AMF + Matchfire reviewed their monthly and upcoming marketing activities. Highlights included the new swag that has shipped, higher SEM metrics, website updates, over one hundred new leads from the email sign-up form, and over 2,300 book a hotel page views in August. Additionally, the agency representatives reviewed current strategic partnership engagements and the upcoming draft sizzle real. Public Comments: None. ---End of Public Comments--- No action was taken on this item 2. SLO Chamber of Commerce Monthly Report Chamber of Commerce representative Molly Kern, former Director of Communications and Business Education, and current Director of Governmental Affairs for the Chamber presented the monthly PR highlights. She also provided a looking ahead list of upcoming publications and public relation opportunities. Public Comments: None. ---End of Public Comments--- No action was taken on this item. Packet Pg. 94 Item 10 DRAFT Minutes – Tourism Business Improvement District Board Meeting of September 17, 2018 Page 3 BUSINESS ITEMS 1. 2017-18 TBID Annual Report Tourism Manager Cano reviewed the 2017-18 Annual Report with the Board including highlights on the ten-year anniversary of the TBID, TOT results, branding and campaign efforts, research completed, travel and tradeshows, promotions, guest services, financial expenditures, and looking ahead to future goals and actions. The Board did not have any edits to the 2017-18 TBID Annual Report but did discuss future TBID liaison projects and Smith Travel Reporting. Public Comments: None. ---End of Public Comments--- ACTION: MOTION BY BOARD MEMBER HUTTON, SECOND BY BOARD CHAIR SKIDMORE, CARRIED 4-0, to approve 2017-18 TBID Annual Report. 2. 2018-20 Marketing Plan Marketing agency representatives walked the board members through the 2018-20 Marketing Plan while highlighting new or shifted sections on marketing objectives, research, brand pillars, media strategies, and changes in digital marketing. Public Comments: None. ---End of Public Comments--- ACTION: MOTION BY BOARD MEMBER WILKINS, SECOND BY BOARD MEMBER HUTTON, CARRIED 4-0, to approve the 2018-20 Marketing Plan as presented. 3. Goal Setting Parameters Tourism Manager Cano presented the City of San Luis Obispo’s Fiscal Health Response Plan and their two-year budget goal setting process. The TBID will begin to create goals in interest of the community and what they will recommend to City Council to consider while staying within the parameters and components of the plan. Board members will begin drafting goals at the next regularly scheduled board meeting. Public Comments: None. Packet Pg. 95 Item 10 DRAFT Minutes – Tourism Business Improvement District Board Meeting of September 17, 2018 Page 4 ---End of Public Comments--- No action was taken on this item TBID LIAISON REPORTS & COMMUNICATIONS 1. Hotelier Update Board members provided updates on their liaison properties. With the addition of new board member Hutton, new liaison assignments will be provided and reviewed at the next regularly scheduled board meeting. 2. Management Committee Update Tourism Manager Cano reported on the Management Committee meeting of September 6, 2018. Highlights included potential STR reporting adjustments, the conference center feasibility study, and URL discussion. 3. Marketing Committee Update Marketing Committee members reported on the Marketing Committee meeting of September 5, 2018 reviewing the Live Oak Music Festival date confirmation, review of the Marketing and Media Plans, and the upcoming LA Magazine Food and Wine Event in partnership with SLO Wine. 4. PCC Update Vice Chair and PCC Committee Member Wilkins reviewed the actions from the PCC Meeting on August 8, 2018. 5. SLO CAL Update Tourism Manager Cano previewed Visit SLO CAL’s Marketing Committee’s potential co-op opportunities that will be reviewed with TBID’s Marketing Committee in further detail. 6. Tourism Program Update Tourism Manager Cano reviewed the following: • Cal Poly’s Move in Weekend success at SLO Days and Cal Poly Gathering on the Green, and Evening with the President Events • MINDBODY Bold Conference in San Diego • Central Coast Tourism Council Packet Pg. 96 Item 10 DRAFT Minutes – Tourism Business Improvement District Board Meeting of September 17, 2018 Page 5 • Strategic Partnerships with Cal Poly Athletics, Cal Poly Student Affairs, and SLO Wine Country. • Upcoming dates to remember ADJOURNMENT The meeting was adjourned at 10:17 a.m. The next Regular meeting of the Tourism Business Improvement District Board is scheduled for Wednesday, October 10, 2018 at 10:00 a.m., in the Council Hearing Room, 990 Palm Street, San Luis Obispo, California. APPROVED BY THE TOURISM BUSINESS IMPROVEMENT DISTRICT BOARD: XX/XX/XXXX Packet Pg. 97 Item 10 Page intentionally left blank. 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