Tourism Promotion AreasOctober 22, 2014

Presented by:

Becky Bogard, Bogard & Johnson LLC, facilitator

George Sharp, Olympia-Lacey-Tumwater Visitor and Convention Bureau

Katherine Kertzman, South Seattle Regional Tourism Authority

Tourism Promotion Areas

•What is a TPA?

•Why is it effective?

TPA Basics• Grew out of need for more tourism marketing funds for

convention centers – origins in Spokane

• Passed by legislature in 2003 – RCW 35.101

• Upon agreement of 60% of hoteliers and approval by appropriate local legislative authority, TPA is formed

• Only hotels with more than 40 rooms eligible to participate

• Fees may be up to $2 per room night and can be different within the TPA

• Legislative authority contracts with tourism destination marketing organization or a similar organization to administer the program

• Upon petition, hotels may dissolve TPA

An Alternative – Parking and Business Improvement Area• Been in statute since 1971 and amended several times –

RCW 35.87A

• Often used to generate funds for downtown cleanup programs

• Seattle used it to generate funds for tourism marketing

• Similar process to TPA for formation and dissolution

• Must show benefits to specific businesses included in program

• No statutory limit on fees and tourism businesses other than hotels could be included

The Thurston County Experience

George Sharp, Executive DirectorOlympia-Lacey-Tumwater

Visitor and Convention Bureau

Thurston County Tourism Promotion Area Background

• Olympia Lacey Tumwater Visitor and Convention Bureau staff and board began discussion with area hoteliers in 2003 to establish a TPA

• Over the years elected officials and VCB board met with hoteliers to establish TPA

• 2010 TPA stalled do to lack of confidence in the VCB to administer the program

• 2011 TPA discussion renewed with new Executive Director hired, budget developed, signature gathering process began and VCB drafted all documents necessary for establishment of TPA (Petition, Interlocal Agreement, Contract)

• 2011-2013 Meetings with Cities of: Olympia, Lacey, Tumwater and Yelm and Thurston County to create a interlocal agreement, continued meeting with Thurston County Lodging Association on budget and marketing plan

Thurston County Tourism Promotion Area Background

• June 2013-60% of hoteliers sign petition to create TPA

• July 2013-County Commissioners agree to be the financial agency for the funds. Ordinance Drafted, 30 day waiting period prior to hearing.

• November 2013 Ordinance approved, Department of Revenue Notified

• April 1 2014, TPA funds begin being collected

• July 1, 2014 Contract established between Thurston County and VCB for VCB to serve as the Tourism Promotion Area Manager

• July 10, 2014 First deposit received

Thurston County Tourism Promotion Area Key Factors

• 60% of Hotels need to agree to establish TPA: • Concerns were:

• $ fee per night, will consumers balk or make decision to go other places (finding-no)

• Input into budget and marketing plan (worked with Lodging Association and 7 member TPA commission to create budget)

• If it doesn’t work or not satisfied, can we kill it? (50% vote of hotels collecting the fund can dis-established the TPA)

• Four Cities and County had to agree to work together and sign the interlocal agreement and allow 1 jurisdiction have authority over the funds

Thurston County Tourism Promotion Area Key Factors

• County and VCB had to agree to contract for VCB to be the TPA Manager (Hotelier insisted it be the VCB to be the TPA Manager)

• Seven member TPA Commission consisted of Hoteliers recommended by the Thurston County Lodging Association to be approved by the board of County Commissioners

• 75 day processing period by Department of Revenue before funding can start being collected. Funding collection only begins at the beginning of a quarter

• Trust, Integrity, Honesty, Personalities, Politics, Perseverance were the key

• Results: Additional $760,000 available per year for Marketing Thurston County for a total combined budget of $1,100,000.

• New funds used for Staff, Marketing, Public Relations, Product Development with emphasis on meetings and the leisure market

Seattle Southside – Innovative Structure

Katherine Kertzman, Executive DirectorSouthside Seattle Regional Tourism Authority

Current SSVS Revenue & Service Structure

Proposed Revenue & Service Structure

Proposed Revenue & Service Structure

Proposed Revenue & Service Structure

Questions?

Comments?

DiscussionContact:

Becky Bogard, Becky@bogardjohnson.com

George Sharp, GeorgeSharp@visitolympia.com

Katherine Kertzman, Katherine@seattlesouthside.com

Diane Schostak, Diane.Schostak@gmail.com