Tourism Marketing District

Tourism Marketing District

THE TOURISM ECOSYSTEM Retail Shopping Restaurants Attractions Accommodations

2014-2015 Visit SLO County Funding Request Jurisdiction Taxable Rents FY 12-13 (0.002) TOT Rate% Arroyo Grande 7,440,050 $14,880 10 Atascadero 7,063,960 $14,128 10 Grover Beach 2,684,250 $5,369 10 Morro Bay 22,330,860 $44,662 10 Paso Robles 35,502,710 $71,005 10 Pismo Beach 72,836,720 $145,673 10 San Luis Obispo 55,819,020 $111,638 10 Total City Funding 203,677,570 $407,355

CA TOT by County 2001-2011 $45,000,000 TID $40,000,000 $35,000,000 BID Millions $30,000,000 $25,000,000 BID TID $20,000,000 $15,000,000 BIA $10,000,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Monterey (10.3%) $40,910,000 $37,330,000 $36,666,000 $37,239,000 $39,776,000 $42,248,000 $44,977,000 $45,606,000 $41,437,000 $39,608,000 $41,041,000 San Luis Obispo (9.7%) $15,770,000 $15,960,000 $16,308,000 $17,304,000 $18,030,000 $19,788,000 $21,768,000 $23,303,000 $23,032,000 $22,218,000 $23,317,000 Santa Barbara (10.9%) $22,921,000 $24,795,000 $25,132,000 $26,423,000 $27,935,000 $30,209,000 $33,258,000 $31,690,000 $29,100,000 $28,548,000 $30,743,000 Napa (12.2%) $15,772,000 $14,014,000 $14,977,000 $15,653,000 $18,032,000 $20,465,000 $21,940,000 $26,469,000 $24,675,000 $23,944,000 $28,208,000 Sonoma (9.8%) $13,476,000 $13,103,000 $13,459,000 $13,986,000 $15,326,000 $17,038,000 $19,893,000 $20,813,000 $19,020,000 $18,133,000 $19,999,000 Page 2

Importance of Tourism in San Luis Obispo County $7,000,000 CA TOT by JurisdicPon 2001-2011 BIDs Begin $6,000,000 $5,000,000 Dollars $4,000,000 $3,000,000 $2,000,000 $1,000,000 $- 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Unincorporated (9%) $4,058,000 $4,296,000 $4,495,000 $4,817,000 $4,967,000 $5,411,000 $5,976,000 $6,474,000 $6,797,000 $6,429,000 $6,162,000 Arroyo Grande (10%) $251,000 $339,000 $361,000 $400,000 $391,000 $435,000 $449,000 $437,000 $389,000 $348,000 $390,000 Atascadero (10%) $296,000 $261,000 $281,000 $314,000 $386,000 $480,000 $479,000 $408,000 $419,000 $409,000 $526,000 Paso Robles (10%) $1,193,000 $1,040,000 $1,124,000 $1,297,000 $1,469,000 $1,613,000 $2,032,000 $2,550,000 $2,710,000 $2,736,000 $3,023,000 Grover Beach (10%) $140,000 $166,000 $158,000 $174,000 $180,000 $220,000 $238,000 $233,000 $231,000 $220,000 $219,000 Morro Bay (10%) $1,772,000 $1,776,000 $1,712,000 $1,731,000 $1,637,000 $1,800,000 $1,898,000 $1,962,000 $1,602,000 $1,819,000 $1,868,000 Pismo Beach (10%) $4,144,000 $4,292,000 $4,334,000 $4,650,000 $4,921,000 $5,290,000 $5,908,000 $6,175,000 $6,165,000 $5,779,000 $6,269,000 San Luis Obispo (10%) $3,916,000 $3,790,000 $3,843,000 $3,922,000 $4,080,000 $4,539,000 $4,789,000 $5,064,000 $4,720,000 $4,478,000 $4,859,000 Page 3

Fragmented Tourism Marketing in San Luis Obispo County Community BIDs Annual MarkePng Spend $5,947,036 $5,500,000 $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,500,000 $1,047,731 $1,156,480 $940,000 $1,000,000 $537,816 $616,890 $500,000 $148,119 $- Pismo Beach (1%) TPRA (2%) Morro Bay (3%) WCC (2%) Atascadero (2%) SLO TBID (2%) VSLOC Total Page 4

HOW Visit SLO County TOURISM MARKETING DOLLARS STACK UP Current Annual CompePPve County Tourism MarkePng Funds Sonoma $2,660,000 Santa Barbara $4,045,473 Napa $5,190,000 Monterey $5,776,817 VSLOC $940,000 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 Visit SLO County (VSLOC) trails its bordering competition by a minimum of 400% (Santa Barbara) and 500+% (Monterey) in annual county tourism marketing funds. In order to successfully compete for visitor volume regionally, nationally and globally SLO County needs a focused strategic direction headed by one organization. All successful tourism markets, including neighboring competition, are funded by a countywide BID/TBID/TID/BIA. Increasing funding will allow VSLOC to improve brand awareness for SLO County while boosting visitor volume, room nights and generating additional taxable rent. Page 10

Competing Against Ourselves Overlap Spending Sonoma Santa Barbara Napa Monterey VSLOC $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 Annual County Tourism MarkePng Funds Sonoma TID Healdsburg TID Santa Ynez TBID Carmel HID Pismo Beach LBID Paso TRPA BID Morro Bay BID WCC BID Atascadero BID SLO TBID SLO County falls further behind competition in fund allocation and spending. Bordering counties funds are strategically spent on county initiatives and branding at a county level as opposed to SLO County where funds are diluted between 6 individual entities in addition to VSLOC. The economy and the recent recession puts available dollars at a premium providing limited space for current overlap and waste in a very competitive landscape. Page 11

Current SLO County BID Percentages Community BID Percentages Atascadero Morro Bay Pismo Beach SLO TBID TRPA WCC 0% 1% 2% 3% Current Community BID Percentages Page 12

Funding RecommendaMon #1 = $3,161,616 Funding RecommendaMon #2 = $3,870,556 $3,500,000 $4,000,000 $325,854 $3,000,000 $325,854 $3,500,000 $3,000,000 $2,500,000 $2,500,000 $2,000,000 $1,500,000 $2,835,762 $2,000,000 $1,500,000 $3,544,702 $1,000,000 $1,000,000 $500,000 $500,000 $- $- InsMtute Countywide 1% TMD Maintain Current SLOC Funding Maintain Current SLOC Funding InsMtute Countywide 1.25% TMD Option 1 increases annual funding to $3,161,616. Option 2 increases annual funding to $3,870,556. Both options narrow the gap with surrounding counties and allow VSLOC the ability to compete regionally, nationally and globally by increasing brand awareness, driving visitor volume, travel spend, room nights, length of stay and generating additional taxable rent. Page 28

What s the Impact on the Guest? County SLO County Monterey Santa Barbara Napa Valley Sonoma/ Santa Rosa ADR: 2013 $123.80 $171.82 $160.96 $260.00 $105.99 TOT $12.01 (9.7%) $17.70 (10.3%) $17.55 (10.9%) $31.72 (12.2%) $10.39 (9.8%) BID $2.48 $2.00 $2.00 $5.20 $2.12 New TMD $1.24 TOTAL $139.53 $191.52 $180.51 $296.92 $118.50 Page 27

strategic marketing overview 5-YEAR PLAN: 2015-2020 To u r i s m M a r k e t i n g D i s t r i c t - t m d

vision mission core values

vision mission core values vision vision mission core values To establish San Luis Obispo County as a premiere Central Coast tourism destination, and a leader in the California tourism community.

vision mission core values MISSION Increase tourism revenue by vision positioning, branding, and promoting San Luis Obispo County as a preferred mission destination for regional, national and global core values visitors.

vision mission core values CORE VALUES vision mission core values Economic Growth Collaboration Integrity Leadership Quality of Life

5-year plan 2015-2020

5-Year Plan (2015-2020) Goals Objectives Strategies 1 Increase Demand of the SLO County Destination measured by increased TOT revenues, in concert with strategic and community partners. 2 Increase Awareness of the SLO County Destination utilizing a suite of marketing tools, in concert with strategic and community partners.

5-Year Plan (2015-2020) Goals Objectives Strategies EXPAND Expand the Visit San Luis Obispo MANAGE County brand to accelerate the destination s competitiveness in CREATE California, reach new domestic markets and build upon key international markets to bolster tourism for the destination. objectives

5-Year Plan (2015-2020) Goals Objectives Strategies EXPAND Manage the Visit San Luis Obispo MANAGE County brand platform. Lead the integration of a countywide CREATE strategic plan working in concert with community partners to reduce duplication of programming, increase efficiency and maximize effectiveness of resources to increase overall reach. objectives

5-Year Plan (2015-2020) Goals Objectives Strategies EXPAND Create industry resources (research, MANAGE education, communication, etc.) backed by current data specific to CREATE San Luis Obispo County to increase competitiveness against other county destinations. Leverage existing research to extrapolate county-specific information and identify key data points needed to support goals. objectives

5-Year Plan (2015-2020) Goals Objectives Strategies LEVERAGE Leverage key assets that are Develop well known and unique in San Luis Obispo County. WORK BUILD INTEGRATE CREATE

5-Year Plan (2015-2020) Goals Objectives Strategies LEVERAGE Develop target audience Develop niches, in addition to business and leisure travelers, positioning WORK San Luis Obispo County as BUILD the go-to destination. INTEGRATE CREATE

5-Year Plan (2015-2020) Goals Objectives Strategies LEVERAGE Work with tourism partners Develop hoteliers, wineries, transportation, community partners - to create top of WORK mind awareness for San Luis Obispo BUILD County bringing new opportunities INTEGRATE for increased market share. CREATE

5-Year Plan (2015-2020) Goals Objectives Strategies LEVERAGE Build upon the marketing tool Develop kit using innovative, technology driven tools and proactive public WORK relations outreach to communicate BUILD unified messaging and inspirational INTEGRATE brand appeal. CREATE

5-Year Plan (2015-2020) Goals Objectives Strategies LEVERAGE Integrate group and leisure sales Develop outreach with shoulder-season promotions and film commission WORK positioning to expand upon midbuild week and off-season business. INTEGRATE CREATE

5-Year Plan (2015-2020) Goals Objectives Strategies LEVERAGE Create a suite of industry Develop resources research, education and communication to position Visit WORK SLO County as the tourism leader. BUILD Foster communication with tourism INTEGRATE partners to create an established set CREATE of criteria and necessary data points to increase competitiveness.

culinary coastal cultural

TEAM STRUCTURE

TEAM STRUCTURE Board of Directors Executive Committee CEO Event Director Event Coordinator Marketing Director Office Manager Marketing Coordinator

budget allocation

budget allocation NEW BUDGET ITEM CURRENT NEW % INCREASE Industry Research & Resources....... $15,000........... $230,000........ 1,430% Digital Marketing......................... $231,690.......... $450,000............ 94% Event Marketing........................... $123,221........... $250,000........... 103% Media/Public Relations................. $158,920........... $255,000............ 57% Film Commission.......................... $20,680............. $75,000.......... 275% Group & Leisure Sales................... $140,186........... $350,000........... 149% Association Memberships............... $9,000............. $15,000............ 67% Advertising.................................. $26,500........ $1,000,000........ 3,673% $3,000,000 $940,059 CURRENT Promotions................................... $13,750............. $75,000.......... 445% G&A........................................... $154,355.......... $300,000........... 194% Member Relations......................... $46,757................ $0.00......... -100% TOTALS...................................... $940,059....... $3,000,000........... 219%

budget allocation 3% Promotions 33% G&A Advertising (Digital, Print, Broadcast, etc.) Associations, Memberships & Partnerships 1% 10% 8% 12% Group & Leisure Sales Industry Research & Resources 15% 3% Film Commission 9% 8% Media/Public Relations Event Marketing Digital Marketing

Timeline Task Nov Dec Jan Feb Mar Apr May Jun July Aug Sept Initiation Outreach Document Prep Document Revision Petition Drive Hearings

Board Structure/Governance Board Structure/Governance Recap of 1/29/14 Meeting: 15 person Board of Directors. Each Board member must represent an assessed lodging business 3 year board terms stagger terms in the beginning Self Appointed Board Officer Team of 4 person to be elected annually: Chairman, Vice Chairman, Treasurer, Secretary

Board Structure/Governance Designated Seats: San Luis Obispo 1 Pismo Beach 1 Paso Robles 1 Morro Bay 1 Arroyo Grande 1 Grover Beach 1 Atascadero 1 Unincorporated County of San Luis Obispo 1 These 8 seats will be appointed to lodging representatives who are assessed as part of the TMD Vacation Rentals 1 B&Bs 1 RV Parks 1 4 Board members Candidates for these seven seats will apply to the Nominating Committee, which will vet the candidates and forward a recommendation to the Board for approval. The Nominating Committee will recommend a slate to the board that ensures diversity of geography and takes into consideration assessment contribution.

Assessment Rate 1% Assessment 5 year term TMD Implementation NO Annual Funding Request from Community Partners (2015)

strategic marketing overview 5-YEAR PLAN: 2015-2020 To u r i s m M a r k e t i n g D i s t r i c t - t m d