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MACVB Education Summit - Boosting Value

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Showing value to CVB stakeholders during the MACVB education summit

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MACVB Education Summit - Boosting Value

  1. 1. Coon Rapids City Council • Anoka • Blaine • Coon Rapids • Fridley • Ham Lake • Lino Lakes • Mounds View • New Brighton • ShoreviewTuesday, May 16, 2017
  2. 2. MINNESOTA STATE STATUTE M.S. 469.190 Local Lodging Tax “Ninety-five percent of the gross proceeds from any tax imposed under subdivision 1 shall be used by the statutory or home rule charter city or town to fund a local convention or tourism bureau for the purpose of marketing and promoting the city or town as a tourist or convention center.” Twin Cities Gateway is a non-profit organization, governed by an 18-member Board of Directors
  3. 3. TOURISM IN MINNESOTA • $14.4 billion in gross sales • Almost $40 million per day • 254,000 full & part-time jobs • 11% of private sector employment • $5.1 billion in salaries and wages • $930 million in sales tax revenues • 17% of all MN sales taxes Anoka County = $555 million / 12,612 jobs Ramsey County = $2.04 billion / 28,026 jobs Bunker Beach $9.8 billion = 68% of all MN tourism revenues are in the metro region
  4. 4. So, what happens when more visitors come to town? Magic Happens!
  5. 5. NO ONE RELOCATES, TAKES A NEW JOB, BUYS A HOME, OR STARTS A BUSINESS IN A COMMUNITY WITHOUT VISITING IT FIRST…  Tourism attracts new residents  Tourism attracts a strong workforce  Tourism attracts new businesses  Tourism attracts new development Tourism is economic development’s “first date” Source: Longwoods International Research 2016
  6. 6. What Happens When More Visitors Come to Town? The perception of the community is enhanced
  7. 7. What Happens When More Visitors Come to Town? The community attracts a strong workforce
  8. 8. What Happens When More Visitors Come to Town? New Businesses are Attracted
  9. 9. TCG WEBSITE ANALYTICS • User sessions 202,941 132,368 +65% • Page views 361,328 313,190 +14% • Organic search 47,824 44,813 + 8% • Social media / FB 49,536 15,467 +68% • eNews “opt-ins” 9,126 3,230 +65% 2016 vs 2015 4th of July Celebration
  10. 10. 2010 2011 2012 2013 2014 2015 2016 591,156 673,559 719,716 780,759 869,335 914,069 938,456 0 200000 400000 600000 800000 1000000 1 2 3 4 5 6 7 Twin Cities Gateway Lodging Tax Receipts Same # of TCG hotel rooms available 2010 - 2016
  11. 11. 46% 56% 57% 65% 68% 79% 77% 78% 69% 66% 54% 49% 48% 54% 55% 58% 65% 74% 76% 76% 73% 71% 56% 50% 46% 55% 57% 65% 65% 75% 71% 78% 76% 65% 50% 46% 0.0% 20.0% 40.0% 60.0% 80.0% 2014 2015 2016 TCG 2016 HOTEL OCCUPANCY 2016 annual occupancy 62.4% = TCG is well-positioned for new hotel development
  12. 12. $81 $84 $84 $86 $89 $95 $96 $93 $91 $88 $85 $83 $84 $87 $86 $91 $93 $101 $102 $100 $98 $95 $87 $86 $90 $91 $91 $94 $95 $103 $104 $101 $103 $100 $91 $91 $- $50 $100 2014 2015 2016 TCG 2016 ADR / Average Daily Rate 2017 ADR = $96.17 Average daily rate was up in 12 out of 12 mos
  13. 13. 21% 24% 17% 16% 16% 6% Lodging Food / Bev Retail Recreation Transport Other Lodging F & B Retail Recreation Transport Other What Happens When More Visitors Come to Town? 79% of visitor spending is on “Main Street” & 21% is on lodging. Without tourism, many of your favorite businesses and establishments may no longer exist. Tourism = Jobs + Tax Base = Community Vitality
  14. 14. LOOKING AHEAD Headwinds & Tailwinds • 22.2% more hotel rooms are available in the metro area than in 2016. • Visitation to metro area continues to increase Bunker Park Stable
  15. 15. WHO ARE OUR VISITORS? • Average HHI $79,740 • Average party 1.9 people • 72% are married • Average age 47 years old • 71% leisure / 29% business • Length of stay is 2.3 nights • 50% of visitors = “day-trippers” • “ Bunker Hills Event Center
  16. 16. 75% of metro area visitors are from MN, ND, SD, IA,WI, 47% are from MN IL & Manitoba are other key markets WHO ARE OUR VISITORS? 80% of metro visitors arrive via personal vehicle and travel an average of 311 miles one-way
  17. 17. 2017 STRATEGIC LANDSCAPE • Competition for the travel dollar is fierce • More destinations see value of visitors • Metro area has 20+ CVBs • All competing for the same visitors
  18. 18. TCG STRATEGIC OBJECTIVES: • Focus on leisure / sports / meetings • Reach identified target markets • Increase non-peak period business • Enhance overnight stays • Leverage resources via partnerships • Maximize prospect engagement Bunker Hills
  19. 19. HOW DO WE REACH OUR BEST PROSPECTS? TCG 2017 Budget $1,228,500 ** • 18% is administrative / overhead • 46% leisure marketing • 14% grant program awards • 14% sports marketing programs • 8% meetings & events promotion MRT Bikeway Coon Rapids Dam ** Budget includes added-value generated by partnerships & co-op marketing programs
  20. 20. TCG COON RAPIDS MARKETING INITIATIVES • USSA Early Bird Softball Tourney • MYSA State (District) Soccer Tourney • USSA Midwest Super Dual Softball Tourney • MSF Men’s Fastpitch Softball Tourney • MRPA State Church Softball Tourney • NCAA JUCO / MEA Volleyball • Turkey Shoot Outdoor Broomball • Girls H.S. Holiday Hockey Tournament • Bunker Hills Video Production • Bunker Beach Video Production • Bunker Hills Event Center Advertising • CR Civic Center Advertising
  21. 21. • Anoka • Blaine • Coon Rapids • Fridley • Ham Lake • Lino Lakes • Mounds View • New Brighton • ShoreviewQ & A

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