TOWN COUNCIL WORK SESSION Thursday, May 21, 2020 @ 6:30pm

via WebEx at www.frontroyalva.com/meeting

1. CHA Redundant Water Line Presentation

2. Tourism Follow-up and Other FY21 Budget Matters

TOURISM RESEARCH & STEPS TO MOVE

FORWARDFRONT ROYAL / WARREN COUNTY

JOINT TOURISM ADVISORY COMMITTEEMay 18, 2020

HOW SHOULD TOURISM PROCEED?

Determine Short-Term Objectives for Change Determine a Structure

that Provides Direction, Leadership and Positive Tourism

Growth

Create a Long-Term Plan with Budget,

Metrics, and Oversight Responsibilities

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WHAT IS TOURISM?

■ Tourism, the act and process of spending time away from home in pursuit of recreation, relaxation, and pleasure, while making use of the commercial provision of services

■ Tourism is one of the largest industries in Front Royal / Warren County bringing in for the private sector: over $151M in revenue, $34M in payroll and 1700 jobs (source: Virginia Tourism Authority – 2018 data)

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AMAZING NATURAL AND HISTORICAL ASSETS

Uniquely Positioned Near Major Metropolitan Areas

At the Crossroads of Two Transportation Corridors (I66 And I81)

Gateway to the Shenandoah Valley “Mile 0” Northern Entrance to the Skyline Drive

and the Shenandoah National Park Where the North Fork and South Fork of The

Shenandoah River Converge George Washington National Forest and Andy

Guest State Park Appalachian Trail Access Points and Official Trail

Town Status Historic Main Street Location of Multiple Civil War Historical Sites and

Assets Places for Climbing, Hiking, Rafting, and Golfing,

Horseback Riding And Other Outdoor Activities Acclaimed Shopping, Arts, Restaurants, Wineries,

Breweries, Museums and Other Points of Interest

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CURRENT SITUATION

■ Tourism is funded by 60% of lodging tax for the County (Warren County Total Lodging Tax for FY 2019 = 195K) and 70% of Lodging Tax for Town. (Town of Front Royal Total Lodging Tax for Town for FY 2019 = approx. 190K). Additional funds have traditionally been applied by each entity.

■ FY 2020-2021 Tourism Budget for the Town is $225K and for the County is $200K

■ The County and Town have separate budgets and separate processes for tourism but are connected through the Joint Tourism Committee

■ In January 2020, the Town of Front Royal removed the Director of Tourism leaving a void in structure and leadership

■ Additionally, the Front Royal Tourism Department employs3.6 paid FTEs dedicated to tourism and obtains assistance from 2-8 part-time volunteers (depending of seasonality). Staff operate out of the Visitor Center located on Main Street and perform various tourism related responsibilities

■ The Visitor Center, located on Main Street, is a certified “Tourist Information Center” by the Virginia Tourism Commission. It is typically open 9am-5pm, 7 days per week.

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FRONT ROYAL / WARREN COUNTY JOINT TOURISM ADVISORY COMMITEE

■ Purpose: To advise, assist, support and advocate for tourism policies, programs and activities to market and promote Front Royal-Warren County and its environs. The Committee serves as the “local tourism industry organization”: (referred to in Section 58.1-3819 of the Code of Virginia)

■ Responsibilities:

Promote and assist tourism development in Front Royal-Warren county community

Develop and assist in the implementation of a joint tourism development plan to increase overall tourism revenue

Encourage individuals, business and the Town and County to invest in tourism development as an integral part of overall economic development

Assist the various regional organizations in planning and implementing a regional development plan

■ Membership: Nine Members, each appointed to a four-year term: 1) The Front Royal Director of Community Development and Tourism, 2) The Warren County Planning Director 3) The President of the Front Royal-Warren County Chamber of Commerce and 4) the remaining six members: three members appointed by the town of which one is a representative from a lodging property and three by the County of which one is a representative from a lodging property.

■ Officers: Current Chair: Katie Tewell, Current Vice Chair: Kerry Barnhart, Current Secretary: Taryn Logan

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RECOMMENDATIONS

Recommended Objectives

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Identify true target customer, experience they want, what we have to offer and the economic potential

Customer Experience

Define clear metrics to assess performance, progress against goals and to benchmark against best-in-class entitiesMetrics

Shift from dependence on print advertising to online social media to include paid ads, geo targeting and higher use of video and original contentSocial Platforms

Improve SEO and track and report on online positioning / Google Analytics; track and report on social media metricsAnalytics

Increase focus on “sustainable tourism”Sustainability

Leverage the combined funding and resources of Town and County to get biggest bang for the buck and reduce redundancy / competing messagingResources

Increase ambassadorship, volunteerism, and local business engagement Ambassadorship

Leverage Front Royal as a brandBrand

General Recommendations Tourism Functions

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Strategy , Planning and

BudgetingVisitor Services

Marketing / Advertising

Research and Analytics

Physical Infrastructure(Strategy Only)

Partner Liaison

Potential Metrics

ACHIEVEMENT OF ANNUAL / BUSINESS

MARKETING PLAN

GROWTH IN LODGING TAX

GROWTH IN MEALS TAX

PARK SERVICE VISITORS ATTENDANCE –FRONT ROYAL

EARNED MEDIA WEBSITE / MOBILE AND SOCIAL ANALYTICS

BUSINESS SURVEY INCREASE IN TOURISM RELATED BUSINESS

REVENUE

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Structural Option 1: In-House

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Town Manager County Administrator

Director of Tourism

Visitors Center / Tourism Staff

Joint Tourism Committee

Town of Front Royal

$

Warren County

• Strategy, Planning, and Budgeting

• Partner Liaison

• Visitor Services• Marketing/Advertising• Research and Analytics

Integrated Town / County Tourism Department Reports to One Entity – Either Town or County Led by a Director of Tourism – Town or County Employee Employs tourism experts that work out of Visitor Center Visitor Center open during peak tourism times for direct

service to individuals and groups Examples: current structure, also Franklin County,

Virginia

Structural Option 2: Outsource Some Functions

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Town Manager County Administrator

Director of Tourism

Visitors Center / Tourism Staff

Joint tourism committee

Town of Front Royal

$

Warren County

• Strategy, Planning, and Budgeting

• Partner Liaison

• Visitor Services• Marketing Content

Contractor

• Marketing/Advertising• Research and Analytics

Outsource Some Service and Operational Functions Managed by a Director of

Tourism or Hybrid Position in Either Town or County

Example: Winchester, Virginia

Structural Option 3A: Fully Contracted Out

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Town Manager County AdministratorJoint Tourism

Committee

Town of Front Royal

$

Warren County

ContractorTourism Corporation,

Marketing Company, or Chamber of Commerce

• Visitor Services• Marketing/Advertising• Research and Analytics

Fully Contracted Out Contracted Out to Chamber or Commerce, Tourism

Commission/Development Authority or Private Entity Contract Management and Fiscal Control Conducted by

Town and/or County Joint Tourism Committee to be responsible for strategy

planning, budgeting, and strategic oversight. Example: Bath County, Virginia (Private Marketing

Organization)

• Oversight Role• Strategy, Planning,

Budgeting and Oversight• Partner Liaison

Structural Option 3B: Fully Contracted Out with Committee Leadership

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Town Manager County AdministratorJoint Tourism

Board

Town of Front Royal

$

Warren County

ContractorTourism Commission,

Marketing Company, or Chamber of Commerce

• Marketing/Advertising• Research and Analytics

Fully Contracted Out with Committee Leadership Contracted Out to Chamber of

Commerce, Tourism Commission/Development Authority or Private Entity

Contract Management Conducted by Joint Tourism Board

Tourism Board to be responsible for executive management, planning, budgeting, and providing fiscal control and strategic oversight.

Example: Fairfax County, Virginia Convention and Visitors Corporation, Asheville, North Carolina – Convention Visitors Bureau, Sedona, Arizona - Chamber of Commerce

• Executive Management Role• Strategy, Planning, and

Budgeting, Fiscal Control

Structural Option 4: Grant Model

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Town Manager County AdministratorJoint Tourism

Board

Town of Front Royal

$

Warren County

Grant Recipient

• Tourism activities of choice

Outsource to Multiple Providers Via Grants Central management via board (variation - government office) Grants open to all comers as long as the organization can help promote tourism Example: Frederick County, Maryland - Main Street Communities Cooperative Fund

• Decision-Making Role• Strategy, Planning, and

Budgeting

Grant Recipient

• Tourism activities of choice

Grant Recipient

• Tourism activities of choice

Grant Recipient

• Tourism activities of choice

Recommended OutsourcingGround Rules

■ Open and competitive

■ Multi-Sourced

■ Objective Evaluation

■ One Year Renewable, Measurable and Enforceable Contract

■ Full Transparency on Financials

■ Firewalled Operations and Financials from Other Lines of Business / Clients

■ Yearly Planning with Town and County Officials

■ Quarterly and Yearly Reporting Against Plan and Pre-Defined Metrics

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Next Steps■ Council / Board of Supervisors to Determine Structural Options

■ Design Roles and Ensure Best Fit

■ Hire for Any Open Roles

■ If Any Outsourcing is Selected – Develop Request for Proposal: Functions, Metrics, and Criteria

■ Select Contractor / Contracted Functions

■ Communicate Organization

■ If Tourism Committee Shifts to a Board with Fiscal Accountability, Restructure as Necessary

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THANK YOU