HomeMy WebLinkAbout2008-09 Tourism Marketing PlanCity of San Luis Obispo
2008-09 Tourism Marketing Plan
2008-09 Tourism Marketing Plan Page 2
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
City Administrative Officer
Cate Norton
PCC Chair
Brigitte Elke
Principal Administrative Analyst
City of San Luis Obispo
990 Palm St.
San Luis Obispo, CA 93401
805-781-7151
www.slocity.org
2008-09 Tourism Marketing Plan Page 3
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.
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 objectives of this marketing plan are to:
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.
Executive Summary
Mission Statement
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.
2008-09 Tourism Marketing Plan Page 4
Table of Contents
I. Situation Analysis 5
History & Goals 5
Transient Occupancy Tax 5
Local Trends 6
Market & Competitive Analysis 9
Industry Trends 12
II. PEST & SWOT 13
Political, Economic, Social, Technological (PEST) 13
Strengths, Weaknesses, Opportunities, & Threats
(SWOT) 14
SWOT Action Plan 15
III. Marketing Objectives & Issues 16
Marketing Strategy 18
Marketing Mix 19
IV. Marketing Research 21
V. Marketing Organization 22
VI. Financials, Budgets, & Forecasts 23
VII. Performance Monitoring 24
2008-09 Tourism Marketing Plan Page 5
Situation Analysis
History and Goals
In June 1970, the San Luis Obispo City Council established the seven-member Promo-
tional Coordinating Committee (PCC) as a standing City advisory body.
The PCC is responsible for a
comprehensive promotional program that
includes oversight of the development of
advertising and public relations campaign
as well as promotional publications,
including maps and informational
brochures. The PCC also makes
recommendations to Council regarding
grants to organizations that encourage and
provide for cultural, recreational, and
economic improvements for San Luis
Obispo and its citizens under the Cultural
Activities grants-in-aid program.
Transient Occupancy Tax
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.
The City’s Transient Occupancy Tax (TOT) remains the third largest revenue source to
its general fund.
In 1964, the City passed its first TOT ordinance, obligating the lodging industry to
collect the then 5% tax on its behalf. Increases in the tax subsequently occurred in 1976
and 1991 and finally reached its 10% assessment in 1993. This rate is currently below
the national rate of 12%. However, the City’s TOT is unlikely to change in an era post
California voter approval of Proposition 218. Proposition 218 would require any
modifications to the City’s TOT to be taken before the voters.
During the 1990s, the importance and predictability of TOT as a revenue stream
became evident to the City. At that time, the collection increased on average 10% per
year. The growth came without any significant promotional efforts. However, beginning
with the nationwide economic downturn in 2001, revenue growth in TOT became less
predicable, starting with a drastic downturn followed by a rollercoaster trend that was
difficult to forecast. It also became clear that the TOT was a deceiving factor to estimate
tourism and travel stays. Increasing room rates often made up for the lack of actual
room occupancy. While the tax income was again increasing in 2005 ever so slightly,
the actual occupancy was still falling behind.
PCC Goals
1. Enhance the quality of life for all
residents and visitors to San Luis
Obispo.
2. Promote, in a manner consistent with
long-range community goals, the
development of San Luis Obispo as the
cultural and tourist center on the
Central Coast.
3. Promote San Luis Obispo as a travel
destination to increase transient
occupancy tax.
2008-09 Tourism Marketing Plan Page 6
Local Trends
After experiencing many years of constant
growth in TOT without much investment or
tourism promotion, revenues fell off sharply
in 2001 and are slowly recovering after
several years of erratic up and downturns.
However, certain trends appear consistent:
♦ Occupancy is traditional lower
during mid-week and increases from
Thursday through Sunday.
♦ Visits to San Luis Obispo continue to
follow seasonal highs and lows with a
steep increase during the summer
months.
♦ The market now shares its
tolerance for rate increases and
revenues have become unpredictable.
2008-09 Tourism Marketing Plan Page 7
Visitor Information and Conversion Studies
While numbers have fallen off, San Luis Obispo continues to be a popular place. The
City’s promotional efforts drove:
During this period, the San Luis Obispo County Visitors and Conference Bureau
(SLOVCB) distributed travel guides to 40,000 potential visitors. The SLOVCB’s
website generated 840,000 click-thrus, 400,000 of which went directly to the lodging
reservation pages.
In 2000, the City completed an Advertising Conversion Study that profiled the type of
visitors to San Luis Obispo. According to Campbell Research, the “typical visitor” to San
Luis Obispo is a well-educated adult couple who travels by car and takes at least three
leisure trips a year. They stay for a day or a weekend to shop and sightsee in San Luis
Obispo and other cities in the County, spending about $400 to $500. About half
consider San Luis Obispo as their primary destination.
2006 Tourism Survey
The 2006 Tourism Survey conducted by the Chamber
of Commerce found that 63% of the visitors come from
California, 18% from out of state and 13% from
overseas. 72% stay between one and three nights.
These visitors mainly travel as a party of two (53%) and
visit for a leisure trip (89%). They are middle aged and
travel without children. 83% stay in hotels and 55%
planned their trip through the internet.
The following areas of interest attracted visitors most
to San Luis Obispo:
2006 2007
Walk-In to
Visitor Center 52,419 57,912
Visits to
VisitSLO.com 208,471 332,644
Email
Requests 1,950 1,426
Phone
Requests 14,500 8,612
Relaxation 28%
Small Town 24%
Wine Tasting 24%
Shopping 23%
Downtown 22%
Hearst Castle 12%
Family &
Friends 12%
History 10%
Cal Poly 9%
Biking 9%
2008-09 Tourism Marketing Plan Page 8
TOT and Room Occupancy Trends
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
Monthly Revenue
January March May July SeptemberNovember
Month
TOT 2005-2007
2005
2006
2007
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
Occupancy %
January March May July September November
Month
Room Occupancy 2005-07
2005
2006
2007
2008-09 Tourism Marketing Plan Page 9
Market & Competitive Analysis
San Luis
Obispo Pismo Beach Paso Robles Santa Barbara Monterey Bay
Area
# of Properties 35
32 hotels
3 RV parks
2 campgrounds
16 hotels
1 RV park 165 276
# of Rooms 2,038
1,944 rooms
725 RV spaces
335 camp
spaces
1128 rooms
166 RV spaces 9,449 12,728
Total Budget $375,000 $473,000 $1.8 million $4.2 million
Funding from
City $375,000 $473,000 $248,000 $1,485,000 $1,065,700
Funding from
County $106,000 $895,000
Funding from
BID $2 million
Membership
Dues $88,000 $200,000
2008-09 Tourism Marketing Plan Page 10
Monterey Bay Area
The Monterey Bay Conference Visitors
Bureau (Monterey VCB) contracts with the
County of Monterey, the City of Monterey,
and other area municipalities. They have
three contracts for funding from the
municipalities, including discretionary and
non-discretionary contracts. They are a
membership-based organization with
private source revenue in the form of
membership dues.
The City of Monterey owns the Visitors
Center building. The City funds the
Monterey VCB to operate the Visitor
Center. Other cities in turn pay the City of
Monterey to display their information at
the Visitors Center. The Monterey VCB has
14 staff members and they are considered a
full-service organization. They provide
convention services, sales services, cultural
tourism information and have a public
relations and Community Promotion
department. The web design work of the
Monterey VCB is done internally with an
outside portal style web provider. The
Public Relations and Communication
department is responsible for updating the
website.
In November 2006, the Monterey County
VCB established a countywide tourism
improvement district (TID). The district
includes the County and eight cities.
In January 2007, the lodging industry
through the TID will collect $2 million
while the public sector will continue to
fund the tourism promotion efforts with
$1,960,700.
City of Santa Barbara
The Santa Barbara Conference and
Visitors Bureau and Film commission
(SBCVB and FC), is an independent, non-
profit corporation comprised of
marketing professionals. They have a
contract with the City of Santa Barbara
($1,485,000) and a contract with the
County of Santa Barbara ($106,000) to
provide external marketing including
advertising, public relations, lead
generation and web marketing.
The Santa Barbara Visitors Center is run
by the Santa Barbara Chamber of
Commerce with funding from the City
($60,000 per year). The Visitors Center’s
main function is to answer questions
from visitors once they are in the city and
to distribute brochures such as the
County Visitors Guide.
The SBCVB and FC has 12 staff
members. They are a membership-based
organization with 230 hospitality
partners from the private sector. They
also serve as the Film Commission for
Santa Barbara County.
The SBCVB and FC focus on marketing
that promotes corporate and leisure
tourism. They are responsible for
branding and marketing the community
to potential visitors. 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.
2008-09 Tourism Marketing Plan Page 11
City of Paso Robles
The City of Paso Robles began focusing on
tourism as a key industry in 1995. At that
time, the City and the Paso Robles
Chamber of Commerce entered into a
services agreement whereby the Chamber
would provide promotional services to the
city through the Paso Robles visitors and
conference Bureau (Paso VCB).
The City of Paso Robles has a contract with
the Paso Robles Chamber of Commerce for
promotions. The base amount of $218,300
plus an incentive is based on the amount of
TOT the City receives. The 2007 contract
amount should total $248,000. The Paso
Robles VCB normally has a full-time
director and various part-time assistants.
The Paso Chamber’s President/CEO and
Board of Directors help to provide
guidance to the Paso VCB. The Paso VCB
provides a wide variety of services in its
promotional efforts. It maintains Visitors
Centers in downtown Paso Robles at the
train station and another one at the
airport. They create and place ads as well as
developing and maintaining a website.
They partner regionally, with the San Luis
Obispo County VCB on cooperative
advertising and support of region
marketing efforts.
They engage in extensive public relations
with press releases each week describing
events and happenings in and around Paso
Robles. They also maintain a calendar of
events. The staff focuses on individualized
visitors with travel writers and their
personal touch has resulted in articles in
Forbes and Via Magazines. They also are
working closely with the Central Coast AG
Tourism Council and the City’s Barney
Schwartz Park, providing staff support and
coordination.
City of Pismo Beach
The Pismo Beach Visitors and
Conference Bureau (Pismo Beach VCB) is
a department of the City of Pismo Beach.
The employees work for the City and the
City funds the promotional efforts.
Because the Pismo Beach VCB is a City
department, all local properties are
“members” as the program is not
membership-based.
Through a contract with the Pismo Beach
Chamber of Commerce, for $77,000 per
year, the City maintains a visitors’ center
in downtown Pismo Beach. Funding of
the Visitors’ Center covers an 800-phone
number for travel guide requests as well
as postage costs for fulfillment. The City
owns the building where the Visitors
Center is presently located and the
Chamber pays for its maintenance and
use. The City employs two people to
manage the Pismo Beach VCB. They are
responsible for all marketing activities,
including advertising, public relations,
website maintenance, and special
promotions. The Pismo Beach VCB has a
Board of Directors who determines the
specific allocations of their budget. Their
annual budget for 2006-07 is $473,000.
They presently do not have a relationship
with the countywide VCB having opted to
do only direct advertising. The Pismo
Beach VCB defines its target market as
the “driving from” market as far away as
five to seven hours. To capture this
market, they actively advertise in the San
Francisco and Sacramento markets.
Pismo Beach VCB does what they refer to
as “maintenance marketing” in Los
Angeles and the Central Valley; they feel
that people in the Central Valley know
Pismo Beach better than its residents as it
is often referred to as “Fresno West”.
2008-09 Tourism Marketing Plan Page 12
Industry Trends
In reviewing the latest Travel Industry Association of America’s (TIA) top travel trends
data for 2005, several findings are worth pointing out in support of the assumptions
made in this report.
Leisure versus Business Travel
While business travel has sharply declined since 2000, in 2005 it accounted for a
quarter of all U.S. domestic travel with more than 500 million 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 monitoring should be applied in order
to address potential shifts.
Leisure travel accounts for 75% of the 1,992 million
domestic trips taken in the U.S. in 2005. 85% of
these trips were taken by car, truck, or RV and only
9% account for airplane travel.
The top activities for domestic travelers once at their
destination were dining, shopping, and
entertainment.
In looking at the seasonality of travel, summer still
remains the most popular time for Americans to
travel. However, the other three seasons appear
fairly even in popularity.
The same tendencies can be found within the monthly share of annual U.S. travel with
July and August representing 20.5% of all travel activities. The slowest travel month is
January followed by February and October. Interesting is the fact that November and
December show the same level of travel activities as September with 8.9% and 8.7%
respectively.
These trends are clearly reflected in the City of San Luis Obispo local travel activities;
however the Winter months seem to trail behind the national average and yield lower
travel numbers.
Conclusion
Leisure travel remains the strongest travel segment within the U.S. This includes
visiting family and friends as well as historical and natural sightseeing.
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.
Top Leisure Activities
Shopping 30%
Social/Family
Events
27%
Outdoor
Activities
11%
City/Urban
Sightseeing
10%
Beach Activities 9%
Historic Places/
Museums
8%
2008-09 Tourism Marketing Plan Page 13
The following PEST (Political, Economic, Social, Technological) and SWOT (Strength,
Weakness, Opportunity, Threat) analysis established by the PCC evaluate where San
Luis Obispo’s competitive advantages and disadvantages lie and compares them with
opportunities and threats in the external environment. However, in order to weigh
them correctly, we need to consider the influence of political, economical, social, and
technological influences on the SWOT. The analysis below summarizes the information
contained in both situational analyses.
II. PEST & SWOT Analysis
Political
♦ constant balance between
businesses and environmental
groups
♦ increased interest in status-quo
and no growth
♦ historical preservation
♦ government politics driven by
open information, feedback
driven, outreach, and community
buy-in
♦ strong lobbying groups in
Chamber of Commerce, EVC,
Downtown merchants, and
environmental groups
Social
♦ leisure and culture driven
lifestyle
♦ 55+ age group expected to grow
exponentially – families in
decline
♦ very California compatible
♦ creative, affluent and innovative
community that embraces
technology
♦ strong ties to community events
and cultural activities
Economic
♦ sales tax initiative
♦ no seasonal influences due to
stable weather year round
♦ two very diverse populations with
students and seniors represent-
ing the core
♦ high purchasing power reflected
in the stores selection currently
present
♦ airport expansion
Technology
♦ Smaller, more entrepreneurial
opportunity driven segment
♦ Cal Poly influence
♦ Niche market opportunities
2008-09 Tourism Marketing Plan Page 14
SWOT Analysis
Considering these influences, the City of San Luis Obispo has strengths and weaknesses
which have a significant impact on the way it approaches its tourism marketing. It is
important to take advantage of the strengths to create competitive advantages. The City
of San Luis Obispo’s strengths and weaknesses can be described as follows:
Strengths
♦ The 2003 Marketing Plan defined
marketing goals and objectives.
♦ The established target audience is in line
with local cultural organizations which
enhance the offering and incentive for
extended stays.
♦ We have an established a distinctive
brand with proven name recognition.
♦ The City offers a central location and is
positioned perfectly as the “hub” to the
Central Coast.
♦ We offer diverse, high-end shopping and
food and wine offerings.
♦ Accessibility is constantly improving with
the airport expansion and additional
airlines serving the area.
♦ The City offers historical sightseeing and
is well equipped for outdoor activities.
♦ 40% of the City’s tourism business is
based on return visitors. Opportunities
♦ There is a tremendous potential for
marketing collaborations with
cultural organizations.
♦ We need to build on image alongside
the well established brand.
♦ Research to gain better data is
imperative.
♦ Market the City of San Luis Obispo
destination as the cultural center of
the Central Coast.
♦ Capitalize from the marketing efforts
for the new hotel inventory.
Weakness
♦ We have a brand, but no true image.
♦ The City lacks a comprehensive
signage to facilitate visits to the
cultural and historical sights.
♦ The marketing budget is limited due
to competitive needs within the City.
♦ We lack the knowledge of Return of
Investment (ROI).
♦ We have yet to attract group
business. We lack collaboration and
therefore have not capitalized from
outreach synergies with local
cultural organizations.
♦ The City’s official website is
government driven and lacks any
tourism angle or relevant
information for visitors.
Threats
♦ Increasing competition from within
and from without the County.
♦ San Luis Obispo lacks popular
attractions.
♦ The San Luis Obispo wine industry
remains unorganized.
♦ Budgetary limitations.
♦ The City needs improved ground
transportation.
♦ Unpredictability of gasoline prices
continues to drive travel decisions.
2008-09 Tourism Marketing Plan Page 15
Strengths
♦ Distinctive Brand
♦ Repeat Business
♦ New Hotel Inventory
♦ Ideal Location within County
♦ Proximity of Airport
♦ Established use of technology and new
media
Weaknesses
♦ Lack of Image
♦ Lack of Signage
♦ Limited Budget
♦ Lack of Ground Transportation
♦ Lack of Group Business
♦ Lack of Research
♦ Limited Target Audience
Opportunities
♦ Targeted Research
♦ Create Image
♦ GIA marketing partnerships
♦ New Airlines
♦ Cultural Offering
♦ Build on online presence
♦ Increase reach by incorporating
different segments of population
(target audience)
Threats
♦ Lack of Beach
♦ Lack of Immediate Attractions
♦ Local and Statewide Competition
♦ Increased Inventory Countywide
♦ Gas Prices
SWOT Action Plan
Overcome weaknesses to pursue opportunities
Minimize vulnerability to threats using strengths
2008-09 Tourism Marketing Plan Page 16
Based on the analysis of the City’s target market, its competition, and the opportunities
available, the following marketing objectives will guide the marketing strategy and
efforts. In the end, all efforts shall support the City promotional Mission Statement:
This section includes the objectives for the City’s marketing
plan, along with the keys to success and critical issues that are
associated with these objectives.
Financial Objectives
Sales Tax and Transient Occupancy Tax (TOT) are important
revenue sources for the City. The City Council recognizes this
importance yearly with the allocation of budget to support
these revenue streams. As part of Economic Development, the
objectives for tourism are clearly stated and an important goal
for City Council.
♦ Strengthen support for tourism promotion (Financial
Plan 2007-09)
♦ Encourage and promote projects and programs that
will increase sales tax and transient occupancy tax
(Financial Plan 2005-07)
The need to increase TOT and Sales Tax revenues remains
critically important to the continued fiscal health of the City.
In order to achieve this objective it is important that the City’s
marketing strategy seeks to:
III. Marketing Objectives & Issues
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.
1. Encourage visitors to stay a minimum of 2 days.
2. Converts “travel through” visitors to overnight stays.
3. Capitalizes from the unique cultural and food and
wine offerings including the local wine region to
capture new and return visitors.
4. Continue to increase the number of repeat visitors.
2008-09 Tourism Marketing Plan Page 17
The following marketing objectives are essential in the development of the marketing
strategy and deployment of the marketing mix.
Target Market Objectives
The target audience for the City of San Luis Obispo is generally defined as an affluent,
middle aged couple, traveling without children, highly educated professionals with a
disposable income. Within this target, the following objectives should be addressed:
1. Culture oriented travelers
2. Travelers interested in food and wine trips
3. Outdoor oriented traveler
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 objective is also to explore the new markets available through airline
connections such as Delta into Salt Lake City, Phoenix, etc. As international travel
regains strength, a close look to the California Tourism efforts to find potential
opportunities will be imperative.
Promotion and Advertising Objectives
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.
Market Research Objectives
1. Gain knowledge of the overall tourism industry in the County.
2. Gain knowledge of the effectiveness of promotional efforts.
Critical Issues
The following critical issues need to be kept in mind while working to obtain the above
objectives:
♦ Rapidly growing inventory in the entire county.
♦ Tremendous untapped wealth of cultural organizations to work with.
2008-09 Tourism Marketing Plan Page 18
Marketing Strategy
The City of San Luis Obispo is committed to remaining the center of the County and to
invite visitors to the Central Coast to make it their main stay for all activities and events
they plan. The goals of the City of San Luis Obispo’s marketing strategy are to:
1. Create an image to support the brand;
2. Encourage visitors to stay a minimum of 2 days;
3. Converts “travel through” visitors to overnight stays;
4. Capitalizes from the unique cultural, wine and food and outdoor offerings to
capture new visitors;
5. Continue to increase the number of repeat visitors.
Positioning
The City of San Luis Obispo is ideally located to be the center for all travel and visit
oriented stays within the County. Its cultural offering is unique and presents an
advantage over the local and regional competitors. The City of San Luis Obispo is able
to provide a unique experience through proximity to a vast variety of day adventure
trips and attractions.
1. Create an image
Over the past years, San Luis
Obispo has successfully introduced
its tourism logo. However, it is
currently missing an image that the
logo should evoke. It will be
essential to utilize the marketing
efforts to create an image behind:
2. San Luis Obispo should be the center for any visit to the County
San Luis Obispo is uniquely positioned within the County and presents itself as
the natural place to stay and conveniently reach all destinations within the
County. Its tremendous cultural and food and wine offering builds the focal point
for evening activities. Farmers’ Market, Mission Plaza, Downtown shopping and
its cultural organizations are all features that make San Luis Obispo special. The
promotional message needs to portray this niche within the County and the
convenience factor a stay in San Luis Obispo offers.
3. San Luis Obispo is the cultural center of the Central Coast
San Luis Obispo is home to a vast array of cultural organizations that offer high
quality music festivals, nationally recognized art festivals, a “state of the art”
performing art center, and many other organizations that cater to niche interests
such as poetry and creative writing. All of the festivals that draw visitors from
outside the County pursue the same target audience the City seeks to attract. It is
imperative that the promotional efforts utilize these synergies and strive for
collaboration with these organizations.
2008-09 Tourism Marketing Plan Page 19
Numbers from the latest Economic Impact study of America’s Nonprofit Arts and
Culture Industry found that travelers who include arts and culture events in their trips
differ significantly from other domestic travelers in a number of ways:
♦ They spend more ($623 vs. $457).
♦ They are more likely to stay in a hotel (62% vs. 55%).
♦ They travel for a longer period (5.2 nights vs. 3.4 nights).
Marketing Mix
To accomplish its main marketing objectives, the City applies a strategy of diversified
promotional effort in collaboration with local organizations and an advertising agency. All
contractors assist in the implementation of the overall community promotions program.
The City’s diversified approach to marketing has provided a means to leverage limited
funds through direct and regional marketing efforts, visitor services and access to
specialists in the local tourism industry. Four contracts govern this diversified approach
for 2007-08 in the following areas: public relations, visitor services, regional
marketing and advertising.
1. Public Relations (PR)
The objective of the PR contract is to promote the advantages of San Luis Obispo
as a destination for tourists, disseminate visitor information, and properly
respond to inquiries about activities and events taking place in the City. It should
strive to obtain favorable media coverage about the City in traditional and new
media and various entertainment outlets.
More specific services and goals include: the maintenance and development of
relationships with travel writers and editors, writing and distributing press
releases about the City, “What’s New in San Luis Obispo” releases, and
maintenance of the existing “press room” on the visitslo.com website. All
media placements and coverage for the year is expected to meet a total value of
one million dollars in advertising equivalent, and a broadcast coverage to
approximately two million people.
2.Visitor and Electronic Information Services
The Visitor and Electronic Information Services Agreement shall provide
specific services such as a public office in a central location for visitor
information with a high level of customer service to visitors and providing
information about the City’s sights and attractions. The maintenance of the City’s
tourism website visitslo.com is also part of the work scope for this contract as
is the enhancement of the website per PCC recommendation.
2008-09 Tourism Marketing Plan Page 20
3. Regional Marketing Services
The regional marketing concentrates on promoting the advantages of San Luis
Obispo County as a destination for tourists seeking to visit the Central Coast. The
City’s tourist amenities become more attractive when they are marketed as the
central location for all county-wide destinations. The San Luis Obispo Visitors and
Conference Bureau (SLOVCB) is in a position to accomplish this aim in an efficient
and economical manner for the City. The SLOVCB plans to
undertake several niche marketing initiatives in 2007-08 and
will introduce its new website in July 2007. The SLOVCB will
work closely with the other contractors and the PCC to include
the City in those initiatives and highlight its unique offerings.
Specific services to be provided by the SLOVCB for regional
marketing include: the maintenance and development of
information that suits the needs of visitors and conference
attendees, developing group business and conferences,
coordinating with the City to create and implement a
marketing campaign, acting as a city-wide film commission,
maintaining electronic information about the City,
disseminating and promoting the City’s brand developed for
community promotions.
4. Advertising Services
The advertising contractor develops and places a
comprehensive advertising campaign on behalf of the City.
This contract also includes the provision of advertising
“fulfillment” services by responding to requests for visitors’
information, and continued outreach to the local lodging
industry.
5. Enhanced Promotions
The Enhanced Promotions program will allow the
Promotional Coordinating Committee (PCC) to take advantage
of unique marketing opportunities as they arise. These
opportunities could present themselves as use of new
technology, cultural programs, partnership opportunities,
niche marketing, etc. It is a competitive program that allows
the committee to dedicate the funding where they see best fit. All contractors, as
well as outside organizations, are able to apply and compete for the funding and
based on presentation and uniqueness of the marketing opportunity the PCC will
decide which program to sponsor.
6. Grants-in-Aid Program
Each year, City Council funds a Grants-in-Aid program that is administered
through the PCC. The program supports local cultural, social and educational
organizations that bring tourism to the City and enhance the life of its citizens.
This competitive grant provides funding to 30 to 40 organizations each year.
2008-09 Tourism Marketing Plan Page 21
In 2007-08 the Economic Vitality Corporation (EVC) plans to commission a tourism
study to evaluate the overall impact of tourism on the county’s economy. This study
should provide a thorough overview on the industry, its benefits, its needs and current
position. The City of San Luis Obispo will participate in this study and hopes to gain a
good understanding of the current state, the importance of tourism and the tendencies
that drive this vital industry in San Luis Obispo County.
This study will be followed by an independent ad effectiveness study in 2008-09 to
evaluate the City’s Return of Investment and to update the information gained during
the last study in 2000. It should provide a better understanding as to the effectiveness
of the current approach and the steps to be undertaken to keep the City’s promotional
efforts effective and successful.
IV. Marketing Research
2008-09 Tourism Marketing Plan Page 22
V. Marketing Organization
City
Council
Promotional
Coordinating
Committee
Grants in Aid
Subcommittee Marketing
Subcommittee
Advertising
Contract
Public
Relations
Contract
Regional
Marketing Tourist
Center
2008-09 Promotional Coordinating Committee Members
Cate Norton, Chair
John Conner, Vice Chair
Debbie Nicklas
Terry Conner
Jeanne Kinney
Cathie Babb
Sarah Maggelet
2008-09 Tourism Marketing Plan Page 23
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:
Staffing Summary
Staff assistance is provided by the Principal Administrative Analyst and supported by
the Administration Department’s Administrative Assistant.
Significant Program Changes
All promotional efforts are directly tied to the City Council’s Major City Goals.
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.
VI. Financials & 2007-09 Budget
Activity Cost 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 $423,100 $442,700
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.
2007-09 Downtown Improvements. Strengthen support for the Downtown in
multiple areas, such as maintenance, economic development, public safety,
parking, tourism promotion, progress on the installation of pedestrian
lighting and comprehensive directional sign program, and other
improvements as resources allow.
Cultural Activity Grants $100,000 $100,000
Activity Cost Summary 2007-08 2008-09
2008-09 Tourism Marketing Plan Page 24
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 work scope 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:
♦ 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.
♦ 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.
VII. Performance Monitoring