HomeMy WebLinkAbout2007-028 Economic Vitality Corp ITEM NUMBER: C-3
DATE: 11/13/07
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Atascadero City Council
Staff Report - City Manager's Office
City Participation in Regional and City Specific Tourism Study
in Conjunction with the Economic Vitality Corporation (EVC)
RECOMMENDATIONS:
Council:
1. Authorize the City Manager to execute agreements with the Economic Vitality
Corporation and Strategic Marketing Group for a Strategic Directions Package
and Community Tourism Marketing Plan and appropriate $12,000 from the funds
set aside for the Economic Development Strategy; and,
2. Approve participation in the Economic Vitality Corporation countywide study with
a contribution of $2,500 appropriated from the funds set aside for the Economic
Development Strategy.
DISCUSSION:
Background: The Economic Vitality Corporation (EVC) is embarking on a countywide
Tourism Study to explore the impacts of tourism on the County and propose a strategy
to enhance the industry. Council Member O'Malley is the City's representative to the
EVC and he is currently the Chairman of the Board.
The EVC circulated a Request for Proposal for a tourism study and conducted a
selection process. The proposal was revised with the guidance of the EVC to reflect
local needs. The EVC also negotiated an opportunity for local agencies to utilize the
regional consultant to perform specific analysis for those Cities's desiring to participate.
This allows the participating agencies to leverage their resources in the bigger project.
The proposals for both the countywide and specific agency reports are attached. The
EVC has asked for the City to express its interest in funding the countywide study
and/or participating in a study specific to Atascadero.
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The cities in the County are currently evaluating their participation. One city is
contemplating a commitment of $2,500 to the countywide effort and is considering
participation in the City specific program, others are still developing their position.
Analysis: The City Council has identified Tourism as a potential economic
development opportunity for Atascadero. The City is currently reviewing the
qualifications of consultants to prepare an Economic Development Strategy which
would include tourism. The EVC program would provide a consultant specific to the
tourism industry and may produce a more focused strategy.
The countywide study will cost $45,000 and the EVC is seeking public and private
sponsors. The Atascadero specific study will cost $12,000 for both phases.
Conclusion: Continued cooperation with the EVC, the regional entity supporting
economic development, and the study the tourism industry countywide and in
Atascadero have been goals of Atascadero. This appears to be a unique opportunity to
participate in a regional effort and work with a high quality consultant specializing in
tourism strategies.
FISCAL IMPACT:
Depending on the Council commitment the cost of this proposal could be $14,500.
ALTERNATIVES:
1. Take no action
2. Study the tourism issues in the City's Economic Development Strategy and
decline participation in the EVC program.
ATTACHMENTS:
1. Revised proposal from SMG for countywide study
2. Revised scope of work for a supplemental services for communities within San
Luis Obispo County
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San Luis Obispo County
Economic Vitality Corporation
Tourism Analysis
REVISED Tourism Industry Study of Son Luis Obispo County
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P.O. Box 10109 South take Tahoe, California 96158 (530) 541-2462 FAX(530)541-8720 www.smgonline.net
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San Luis Obispo County Economic Vitality Corporation
Project Overview
The San Luis Obispo County Economic Vitality Corporation(EVC)provides economic development services
and business resources throughout San Luis Obispo County.The EVC stimulates the
local economy by helping to generate jobs,increase investment in the community and
promote the start-up,growth and attraction of businesses.The EVC recently
completed a county—wide wine industry study in an effort to understand the economic
dynamics of the industry and to maximize San Luis Obispo County's efforts. In the
same vein,the EVC would also like to develop a similar analysis for the tourism
industry within San Luis Obispo County.As such,the EVC seeks to commission a
study of the County's tourism industry.
I.Project Overview
This project will review the competitive position of San Luis Obispo County(SLOC)within the tourism
industry in an effort to understand the strengths,weaknesses,opportunities and threats as compared with
its competitive set.The strategic analysis is to be included in an overall county-wide economic development
strategic pian.
II.Project Objectives
1. Provide an economic impact of tourism in the county that includes an appropriate economic
multiplier analysis,census of jobs created and tax revenue created.
2. Provide a number of assets tourism assets by category.
3. Numbers and characteristics of visitors.
4. Conduct a systematic assessment of San Luis Obispo County's Strengths,Weaknesses,
Opportunities and Threats(SWOT)including underserved segments,ancillary businesses,tourism
promotions and infrastructure that presents the greatest marginal benefit.
5. Identify key emerging trends and how the relate to the County's Strengths,Weaknesses,
Opportunities and Threats and how marketing efforts should respond to those threats. Review
SLOC demand generators vs. other Central Coast regions.
6. Best practices regarding assessment and use of transient occupancy tax T.O.T.
7. The feasibility and potential benefits of a regional convention center.
8. The impact of BIDs on tourism in comparable destinations,
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9. Benchmarking Comparisons of SLOC tourism industry efforts with competitor counties. Review
SLOC tourism promotion systems and assess effectiveness vs. Central Coast regions.
10. Development of strategic recommendations to improve SLOC competitive position.
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Scope of Work
What we Intend to Accomplish for the EVC
The project scope has three distinct phases, including data and information collection, information analysis
and the development of a final report.
Project Scope
Phase 1 Phase 2 Phase 3
Information Information Final Report and
Collection Analysis Presentation
Phase 1:Information Collection
The first phase includes the assessment of the competitive tourism situation in San Luis Obispo Coun=- r.
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1.Information Collection
1. Economic Impact of Tourism
✓ Understand the current and long term trend of the economic impact of tourism on
San Luis Obispo County.
✓ Compare economic impact trends with the SLOC competitive set.
✓ Include and factor in tourism market trends in California,the Central Coast and SLOC.
ll.SWOT Analysis
A.Lodging Analysis
✓ Review current information on lodging supply(mix)hotel occupancy rates,Average Daily Rate and
RevPar.
✓ Provide a general assessment of San Luis Obispo County accommodations as they compare with
other Central Coast communities.
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:
B. Tourism Asset Analysis
✓ Review tourism"Revenue Generators"within San Luis Obispo County and the competitive set and
identify asset gaps.
C. Tourism Promotion Systems Analysis
✓ Review of tourism promotion/market organizations and materials in SLOC and the competitive set
to understand resources levels and marketing approaches from the consumer perspective
D. Consumer Information
✓ Implement consumer research in order to understand SLOC's strengths&weaknesses vs.the
competitive set
E. Stakeholder Information
✓ Interviews with key stakeholders on their view of SLOC's competitive position
✓ Email survey of tourism industry on their perspective of SLOC's competitive position
Phase 2.Information&Data Review and Analysis
SMG will the review collected information and analyze it to answer the following key questions:
1. What is the current situation?
2. What changes need to be made?
3. How can it be made to happen?
Phase 3.Final Report and Presentation
The final phase will include the development of a final report and PowerPoint presentation.
It is our specific goal to provide the Economic Vitality Corporation of San Luis Obispo
County with a comprehensive Tourism Industry Study of San Luis Obispo County.
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Methodology
Key to developing a tourism analysis is to understand the current competitive position of the destination
when compared to its competitive set.This can be achieved through the following analysis.
I.Historical Review and Analysis of the County's Tourism Industry
✓ Review tourism economic impact trends including business receipts,employment and wages
✓ Review current tourism promotion structures
✓ Review funding levels and marketing activities
II. Economic Impact of Tourism
This section will begin with a detailed description of travel-generated sales,employment,earnings and tax
receipts, based in part on Dean Runyan Associate's data and methodology, updated with the most recent
data available for 2007. Breakouts will be provided by type of visitor and by visitor industry business
category.
An IMPLAN model will be used to described secondary(indirect and induced)earnings and employment
generated by travel and tourism, illustrating the nature and magnitude of secondary impacts on the County
economy. In particular we expect this analysis to highlight businesses such as professional services, real
estate,construction and agriculture.
This model will also be used to project beneficial economic impacts of recommended growth in the travel
and leisure industry in the County, in particular the potential for additional sales,employment,earnings and
tax receipts. Multiple growth scenarios can be analyzed, if desired.
III.SWOT Analysis
In an effort to provide a comprehensive SWOT analysis SMG is proposing the following steps.
A. Tourism Product Analysis
This will include an analysis of county hotels, attractions and tourism assets.
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B. Consumer Information
SMG will conduct online panel research of frequent California travelers in an effort to understand the
following:
✓ Perception of SLOC strengths and weaknesses.
✓ Comparisons on perception vs. performance of county tourism elements.
✓ Comparative analysis of tourism experience SLOC vs.competitors,
✓ Visitor characteristics/underserved tourist segments
C. Tourism Trend Analysis
SMG will provide a complete review of current and pertinent tourism trends that would relate to the SWOT
analysis and identify areas of opportunity or competitive advantage.
✓ Current and projected tourism trends
✓ Current and projected social and cultural trends that impact tourism
✓ Market potential as it relates to the SLOC SWOT analysis and potential market response
IV. Best Practices
A. Assessment and use of Transient occupancy Tax(TOT)
This will include a general review and assessment and use of TOT for sales and promotions efforts for San
Louis Obispo County including the county and sub-city promotional efforts as compared with the competitive
set.The analysis will include the following:
✓ Current Total collections and allocations
✓ Tourism promotional budgets for individual communities and aggregated.
✓ Review of current county and sub-city promotional efforts and their mutual support
✓ Overall impact of current approach
✓ Comparatives with competitive set promotional efforts
IV. Regional Convention Center
✓ Determine the market for a Regional Convention Center(supply and demand level analysis)
o Scope and nature of a facility if further study is recommended.
o Determine potential target convention and conference market for such a facility
o Potential financing for a facility
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VI. Review of BIDS
Review of BID case studies on tourism development in comparable destinations.
✓ Review type of BID
✓ Review organizational structure
✓ BID funds use
✓ Tourism Impact
IV. Benchmark Comparisons
1. Develop a San Luis Obispo County Fair Share Analysis
In order to understand San Louis Obispo County's current business levels and potential business levels
related to tourism,a quantitative analysis of their fair share business level is required.A fair share analysis
for San Louis Obispo County will compare its performance related to its capacity and compare those
findings to its competitive set. It will include the following tasks:
✓ Review San Louis Obispo County room supply, hotel occupancy,ADR, Rev Par
✓ Review comp set room supply, hotel occupancy,ADR, Rev Par
✓ Develop Fair Share Analysis
2. Competitive Tourism Asset Analysis
This analysis compares San Louis Obispo County's demand generators(natural resources, attractions,
events,etc.),to its destination comp set. For example, San Louis Obispo County could be compared to its
competitors using the following matrix.
San Louis Obispo Competitor 1 Competitor 2
County
Natural Resources Demand Generators
Water Based Recreation
Land Based Recreation
Natural Sites
Manmade Resources Demand Generators
Historical Resource Opportunities
Cultural Resource Opportunities
Accommodation
-Special Events
Analysis steps would include the following:
✓ Review&assess San Louis Obispo County attractions and tourist events.
✓ Review&assess San Louis Obispo County accommodations and retail facilities.
✓ Review and assess comp set attractions,tourist events, accommodations and retail facilities.
✓ Develop comparative between San Louis Obispo County and Comp Set
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Determine how San Louis Obispo County ranks on pre-determined criteria for each comparative area.
Rankings could include the following:
• Dominant
• Competitive
• Below Competitive levels
3. Comparison of TO,T rates and amounts
✓ Compare comp set T.O.T rates and funds as well as percent that goes to budget
VI.Recommendations
Based on the collected information SMG is prepared to make strategic recommendations in the following
areas:
✓ Economic Impact of Tourism
✓ Tourism Product Analysis
✓ SLO County Consumer Segments
✓ Tourism Trend Analysis
✓ Assessment and use of Transient occupancy Tax(TOT)
✓ Regional Convention Center
✓ Review of BIDS
1%Mr►1 ✓ Benchmark Comparisons
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VII.Analysis of Collected Information
This will include the following:
✓ Analyze the collected information to determine key issues, and develop a SLOC Strengths,
Weaknesses, Opportunities and Threats model.
✓ Develop strategies and recommendations
Historical Analysis
Economic Analysis
SWOT Analysis
Best Practices SLOC Final Report and
Analvsis Tourism Industry Recommendations
Analysis
Regional Convention
Center
BID Analysis
r+wrt
Benchmark/
t,mmnatitivP.
Vlll. Final Report and Presentation
This will include the development of final report and PowerPoint presentation.
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Project Deliverables RTimeline
A.Project Deliverables
Based upon this submitted proposal, SMG will provide the following project deliverables:
:) Historical analysis and overview
:Z Economic analysis
:Z SWOT analysis
�D Best practices
:) Regional convention center
• BID analysis
• Bench marklcompetitive analysis
• Recommendations
B.Project Timeline
The project timeline is proposed as follows and subject to agreement with San Luis Obispo County.We
anticipate the study taking 4 months,with a proposed timeline that can be found below.
Proposed Project Timeline
Month 1 IMonth 2 1 Month 3 Month 4
Information Collection
Lodging Industry Analysis
Economic Impact Analysis
Tourism Asset Analysis
Tourism Promotions Systems Analysis
Consumer Survey
Stakeholders
Interviews
Industry survey
Information Analysis
Final Report&Presentation
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About the Firms
Strategic Marketing Group
The Strategic Marketing Group(SMG),a California Limited Liability Corporation, is located at 2048 Dunlap
Drive, Suite 11, South Lake Tahoe, CA and is a marketing advisory firm specializing in providing marketing
research,strategic planning and strategy development services for the travel,tourism and recreation
industries.
SMG prides itself on providing its clients with insights and solutions for effective marketing analysis and
marketing strategies. We view ourselves as strategists that assist our clients by understanding bigger
issues necessary for their success.
SMG has access to a wide variety of tourism industry/marketing research resources to help ensure our
clients receive state-of-the-art solutions,The firm has attracted a roster of blue chip public and private sector
clients including visitor and convention bureaus,hotels, lodging management companies, casinos,ski
resorts,economic development agencies and chambers of commerce. ,,,
ago
SMG brings a wealth of skills,experience and knowledge relevant to this project, including the following:
■ Thorough knowledge of San Luis Obispo County.
■ Experienced in the development of county-wide tourism analysis including Lassen,Amador,EI
Dorado, Sonoma, Monterey and Inyo.
■ Experienced in the development and implementation of successful Tourism Marketing Plans for
Destination Marketing Organizations(DMOs.)
■ Experienced in economic and ROI analysis for tourism organizations.
■ Extensive experience in supply and demand analysis for the lodging investment industry. See our
sister organization www.smgonlinere.net
■ Extensive experience in tourism BID development
■ Experience in developing integrated marketing programs including competitive strategy development,
creative concept development and execution,target market identification,online and offline media
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planning,cooperative marketing partnerships,financial models,fulfillment mechanisms and
measurement systems,
■ Extensive experience in convention and group sales.
■ Specific experience with and a thorough understanding of the impact of the lodging and recreation
segments within tourist destinations.
■ Extensive experience in working with public and private sector organizations.
■ Appreciation and commitment for balancing tourism with the protection of the environment and the
local community's values and needs.
■ Expansive knowledge and experience in dealing with a variety of marketing and political issues.
■ A thorough understanding of the California and national economy,travel trends and impacts.
Consultant Profiles
Carl Ribaudo—Proiect Director
Carl is the founder of the Strategic Marketing Group and has over 20 years of experience in the tourism and
travel industry.Carl holds an MBA degree and has authored a variety of articles and white papers related to
the tourism industry(which can be found online at www.smgonline.net).
Carl has worked extensively as a consultant in the visitor and convention bureau industry as well as having
previously served as the Director of Sales&Marketing for a DMO. In addition,Carl currently serves on the
Board of Directors of the Lake Tahoe South Lake Tahoe Chamber of Commerce. Carl will be the primary
contact for this project.
Ro.eg r King—(Senior Hospitality Consultant) Roger was formally Vice President of Marketing for VRI with
oversight responsibility for over 20 properties in CA,CO,AZ, HI,WA and NM.Specific destinations include
Maui, Kauai, Breckenridge,Vail,Aspen, Durango, Santa Fe, Park City, Lake Tahoe, Palm Springs,
Scottsdale Sedona and the Olympic Peninsula. Roger has extensive experience in timeshare,condo and
hotel products and has over 20 years of experience in the hospitality industry.
Karen Johnson—(Research Analyst)Karen Johnson has more than five years of market research
experience in several industries including homebuilding,public policy,technology and tourism. She is skilled
in project planning,qualitative and quantitative data analysis and reporting,focus group preparation and
moderation, and survey development. She has assisted numerous clients in strategic planning, product
placement and market entry, and marketing and advertising campaign development.
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Karen received a B.A. in English from the University of Maryland in 1995. She was trained in focus group
moderation by the Riva Training Institute in Bethesda, MD, and has moderated over 100 focus groups. In
addition, she has received training from the Burke Institute in research reporting and from the Institute for
International Research in web-based surveys and online focus groups.
Dean Runyan Associates
Located in Portland Oregon Dean Runyan Associates has worked since 1984 to assist with market
research, planning and economic analysis for the recreation and tourism industry.The firm has extensive
experience providing economic analysis for travel industry businesses, attractions, and destination
communities.
Dean Runyan &Associates brings a wealth of skills,experience and knowledge to this project, including the
following:
■ Extensive experience in providing travel industry economic analysis for the state, regional and local
level.
■ Has implemented State of California(under contract to the California Travel and Tourism
Commission)Travel Impact Study since 1985
Consultant Profiles
Dean Runyan has extensive experience with recreation,travel and tourism projects, and has been
responsible for many of the projects completed by DRA. Dr. Runyan earned a Ph.D. in Urban and Regional
Planning and a M.S.in Engineering from the University of Michigan,and a B.S. in Engineering from the
University of California. Before founding Dean Runyan Associates in 1984, he was Associate Professor and
Department Head in the Department of Planning, Public Policy and Management at the University of
Oregon. Previously, he was Assistant Professor in the Urban and Regional Planning Department at the
University of Hawaii,and held research positions at the Hawaii Environmental Simulation Laboratory in
Honolulu and the Institute for Social Research in Ann Arbor, Michigan.
Dr. Runyan has published in a number of professional and academic journals and made presentations at
many regional and national conferences. He has prepared over 100 research and planning studies for
public and private clients throughout the U.S.
Leon Aliski has served as project manager for a number of DRA market analysis, recreation and tourism
planning, and feasibility studies. He specializes in regional economic analysis and has particular experience
with input/output and other advanced economic analysis methodologies. He holds a Masters Degree in
Economics from Oregon State University, and a Bachelors Degree in Business Administration and
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Economics from Humboldt State University. Prior to joining DRA, Leon was with the Oregon Division of
State Lands where he provided research and analysis for projects associated with the state's waterway
leasing program.
Tanya Zvyagina serves as a research assistant for DRA, performing data collection,mapping,analysis and
report preparation. Prior to joining DRA,she worked as a research assistant for a state-funded program in
New Jersey,creating maps and collecting data for different state planning agencies.Tanya earned a
Masters Degree in City and Regional Planning from Rutgers State University of New Jersey,and a
Bachelors Degree in Geography from Moscow State University.
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References
SMG
StrategiLMarketing Plan Development
California Travel &Tourism Commission
980 91h Street
Sacramento, CA 95814
Contact: Lynn Carpenter, Deputy Director(916)319-5411
Assisted in the development of CTTC 5 year$50M Annual Tourism Marketing Plan
California Travel &Tourism Commission
980 9th Street
Sacramento, CA 95814
Contact: Susan Wilcox, Deputy Director(916)319-5411
Developed statewide rural tourism strategic marketing plan
Lassen County
707 Nevada Street, Suite 5
Susanville, CA 96130
Contact: Monica Cochran(916) 251-8429
Developed county-wide strategic tourism marketing plan
Monterey County Visitors and Convention Bureau
150 Oliver Street
Monterey,CA 93942
Contact:Jennifer Flice, (831)657-6405 Director of Marketing
Developed Monterey County marketing and sales plan
Placer County Visitors Council
11341 Lincoln Way
Auburn, CA 95603
Contact: Executive Director(530) 887-2111
Completed county-wide tourism strategic marketing plan in 2001
Amador County
125 Peek Street
P.O. Box 596
Jackson,California 95642
Contact: Bob Tierno(209) 267-0747
Developed a tourism assessment and marketing plan for Amador County in 2003
Fairfield Hotel Association
2200 Gateway Court
Fairfield, CA 94533
Contact: Kevin Johnson
Completed first ever marketing plan for a newly formed Hotel Business Improvement District for the City of
Fairfield in 2005
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Coalition of Chambers of Commerce of Inyo County(Coalition)
168 N, Edwards St. (County of Inyo Office)
Independence, CA 93526
Contact: Leann Fields,Coalition Chair(760)938-2319
Contact:Ted Williams, Inyo County Supervisor(760)872-0917
Completed county-wide tourism assessment and long-term tourism marketing plan in 2004, SMG was hired
in 2005 to develop the Inyo County brand.
Sonoma County Economic Development
401 College Ave.#D
Santa Rosa, CA 94501
Contact: Ben Stone, Executive Director(707) 524-7170
Completed county-wide tourism strategic plan in 1999
San Luis Obispo County Visitors and Convention Bureau
1037 Mill Street
San Luis Obispo, CA 93401
Contact:Jonni Biaginni(805)541-8000
Completed county-wide tourism strategic marketing plan in 2000
Ventura Visitors and Convention Bureau
89 S. California Street
Ventura,CA 93001
Contact:Jim Luttjohann(805)648-2075
Completed tourism sales&marketing plan in 2002
Research Related Projects
Monterey County Visitors and Convention Bureau
150 Oliver Street
Monterey, CA 93942
Contact:Jennifer Flice,(831)657-6405 Director of Marketing
Developed and implemented online travel study of California residents
Edgewood Golf Course
Lake Parkway
Stateline, NV 89449
Contact: Brad Nelson, Chief Executive Officer
Conducted first ever user profile study
Mono County
437 Old Mammoth Road
Mammoth Lakes, CA 93546
Contact:Jeff Irons(760)924-1812
Developed and implemented advertising conversion study in 2004,followed by a contract to implement a
Visitor Center feasibility study in 2005.
Lake Tahoe Visitors Authority
P.O. Box 5878
Stateline, NV 89449
Contact: Sue Barton, Sales&Administrative Director(775) 588-5900
mow✓
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Ongoing visitor profile marketing research for South Shore destination
Carson City Visitors and Convention Bureau
1900 S. Carson Street, Suite 200
Carson City, NV 89701
Contact: Candy Duncan, Executive Director(775)687-7410
Visitor profile study for destination
Yosemite Sierra Visitors Bureau
41969 Highway 41
Oakhurst, CA 93644
Contact: Dan Carter(559)683-4636
Research and analysis to develop second season for Southern Yosemite corridor market
Cooperative Marketing Plan Implementation&Development
Golf the High Sierra
P.O. Box 300
Clio, CA 96106
Contact: Doug Flynn(800) 332-4295
Developed and implemented region-wide cooperative golf marketing program targeted to attract destination
visitors.Activities include marketing plan development and implementation, creative,web site development
and sales program creation.This program is ongoing.
Ski Lake Tahoe
P.O. Box 2180
Stateline, NV 89449
Contact:John Wagnon(775)586-7000
Developed and implemented national and international cooperative marketing program designed to increase
destination skiers to Lake Tahoe.Activities include ongoing research, media planning, public relations,web
site development and creative message development. Ski Lake Tahoe has been a long-term client of SMG
since 1995.
California Association of Bed and Breakfast Inns(CABBI)
2715 Porter Street, Suite 104
Soquel, CA 95703
Contact: Kathy Moler(831)600-4640
Developed long-term marketing plan for this 300+cooperative marketing association in an effort to increase
awareness and demand of its member inns. Since 2002 SMG has assisted CABBI with the implementation
of the strategic marketing plan including creative development of ads and rack cards, media planning, public
relations, strategic cooperative marketing program development,web site development, measurement
systems and sales programs.
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Dean Runyan Associates
Travel and Tourism Impact Analysis
DRA is one of only a few companies in the US that specializes in analyzing the economic impacts of travel
and tourism,with projects at the state, region and community level.
Statewide studies typically provide detailed county-by-county analysis,conducted annually,of the impacts
of travel,recreation and tourism, including sales,payroll,employment and tax receipts. These projects also
analyze room tax receipts and other economic aspects of travel and tourism.
• Arizona(1998-2005)
• California(since 1985)
• Colorado(since 1997)
• Idaho(1997)
• Nevada(2005)
• North Dakota(1988- 1995)
• Oregon(since 1987)
• Texas(since 1997)
• Washington(since 1991)
• West Virginia(2003,2004)
• Wyoming(since 1997)
Regional and local studies focus on similar impacts as they relate to destination areas, recreation
locations and marketing regions.
• Finger Lakes District, New York
• Juneau,Alaska
• Lake Tahoe Region, California and Nevada
• Napa County, California
• Northern and Eastern Mojave, including Death Valley National Park, California
• Skagway,Alaska
• Sonoma Valley,California
• Sun Valley, Idaho
Local Government and Economic Development Agencies
• Benton County Office of Sustainable Development,Washington
• Burns Paiute Tribe,Oregon
• City of Fort Worth,Texas
• City of Greeley,Colorado
• City of Olympia,Washington
• City of Port Angeles,Washington
• City of Seattle,Washington
• City of Sonoma,California
• City of Whittier,Alaska
• Columbia River Gorge Commission,Washington
• Confederated Salish and Kootenai Tribes of the Flathead Nation, Montana
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• Confederated Tribes of Coos, Lower Umpqua and Siuslaw, Oregon
• Cowlitz County,Washington
• Cowlitz Indian Tribe, Washington
• Curry County, Oregon
• Deschutes County, Oregon
• Harney County, Oregon
• Ida-Ore Economic Development Commission, Boise, Idaho
• Lane County, Oregon
• Makah Tribal Council, Washington
• Metropolitan Exposition-Recreation Commission, Portland, Oregon
• Multnomah County, Oregon
• Napa County, California
• Northeast Wyoming Economic Development Coalition
• Oregon Economic Development Department
• Oregon International Port of Coos Bay
• Port of Chelan County,Washington
• Port of Willapa Harbor,Washington
• Quileute Tribe, La Push,Washington
• San Bernardino County, California
• Snohomish County,Washington
• Sonoma County,California
• Spokane County,Washington
• Tri-County Economic Development District,Colville Washington
• Tulare County Association of Governments, California
• White Pine County, Nevada
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"ftw Project Fees
The cost to develop this project is$45,000.
• Includes fees for the project and travel costs with approximately 3 trips to SLO County.
• Note Fees are based on a using secondary research for consumer identifucation. if primary research is desired
SMG will provide an additional estimate.
Our standard payment program to be mutually agreed upon by both the Strategic Marketing Group and the
Economic Vitality Corporation is one-third payment upon agreement,one-third payment upon submission of
the draft report and one-third payment upon submission of the final report.
SMG This project comes with the Strategic Marketing Group guarantee for
L Guarantee your total satisfaction.
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Economic Vitality Corporation
Tourism Analysis
Supplemental Services for communities within San Luis Obispo County
Dean Runv n .
N.O. Bax 10109 South Lake Tahoe, taiifornia 96158 (530) 541-2462 FAX (530) 541-8710 www.smgonline.net
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Project Overview
The following proposal for has been developed as an incremental services for individual communities within
San Luis Obispo.The services offered are designed to leverage the previously submitted"Tourism Industry
Study of San Luis Obispo County"for the Economic Vitality Corporation of San Luis Obispo County.
The proposed services are designed to provide individual communities within the county with information
and recommendations designed t strengthening the tourism industry within their region by taking advantage
of the work to be done in the countywide study. We have broken our services into two distinct products:
The First is a Strategic Directions Package and the second a Community Tourism Marketing Plan.
The Strategic Directions Package
The Strategic Directions package includes the following five elements:
I.Economic Impact of Tourism
This includes a detailed description of travel-generated sales,employment, earnings and tax receipts,for
the individual community based in part on Dean Runyan Associate's data and methodology, updated with
the most recent data available for 2007,
It.SWOT Analysis
In an effort to provide a comprehensive SWOT analysis SMG is proposing the following steps.
A. Tourism Product Analysis
This will include an analysis of community based hotels, attractions and tourism assets.
B. Consumer Information
As part of the research conducts SMG will provide a breakout of visitors to specific areas in question.
Including the following:
✓ Demographic profile of visitors
✓ Primary reason for visiting
✓ Visitor characteristics/potential underserved tourist segments
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III. Best Practices
A.Assessment and use of Transient occupancy Tax(TOT)
This will include a general review and assessment and use of TOT for sales and promotions efforts for the
individual community..The analysis will include the following:
✓ Current total collections and allocations
✓ Tourism promotional budgets for the individual community.
✓ Review of current county and sub-city promotional efforts and their mutual support
IV.Benchmark Comparisons
7. Develop a Individual Community Fair Share Analysis
In order to understand the individual community current business levels and potential business levels
related to tourism, a quantitative analysis of their fair share business level will be provided.A fair share
analysis for the individual community will compare its performance related to its capacity and compare those
findings to its competitive set. It will include the following tasks:
✓ Review Individual community room supply, hotel occupancy,ADR, Rev Par
✓ Review comp set room supply, hotel occupancy,ADR, Rev Par
✓ Develop Fair Share Analysis
2 Comparison of TO.T rates and amounts
✓ Compare comp set T.O.T rates and funds as well as percent that goes to budget.
V.Recommendations
Based on the collected information SMG is prepared to make strategic recommendations in the following
areas:
✓ Economic Impact of Tourism
✓ Tourism Product Analysis
✓ SLO County Consumer Segments
✓ Assessment and use of Transient occupancy Tax(TOT)
✓ Benchmark Comparisons
Community Marketing Plans
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San Luis Obispo County Economic Vitality Corporation Supplemental Services
A number of communities have expressed an interest in developing a tourism marketing plan for their
specific community, SMG is prepared to develop a specific plan for each community.The elements of the
plan are included below.
SMG Marketing Plan Elements
Section 1: Project Overview
I. Introduction
II. Project Goals& Objectives
III. Elements of Tourism
Section 2: Macro Trends
I. California Macro Trends
II. California Economic Trends
Ill. California Demographic Trends
IV. Travel, Social and Cultural Trends
Section 3: Micro Trends
I. Size and Scope of the Client Destination
Tourism Market in Perspective
Il. Client Destination Lodging Industry Overview
Section 4: Client Destination Product Experience
I. Product/Experience Profile
II. Visitor Benefits
III. Client Destination Strengths,Weaknesses,
Opportunities and Threats
Section 5: Competitive Analysis
I. Direct Competitors
II. Indirect Competitors
Section 6: Client Destination CVB Mission,Goals & Objectives
1. Mission Statement
II. Goals
III. Core Objectives
Section 7: Marketing Opportunity&Target Markets
I. Client Destination Marketing Opportunity (ROI Analysis)
II. Target Markets
Section 8: Marketing Strategies
I. TBD
Section 9: Client Destination CVB Business Model Action Plan
Brand Building Stage:
I. Advertising/Media
II. Promotions
III. Public Relations/Community Education
Implementation Stage:
I. Website Enhancements/Visitor Communication
II. Promotions
III. Sales
IV. Visitor Information
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San Luis Obispo County Economic Vitality Corporation Supplemental Services
Brand Loyalty Stage:
1. Collect Visitor Information/Measurement
Section 10: Organizational Structure
Section 11: Client Destination CVB Budget
The marketing plan seeks to include the elements developed in the Strategic Directions Package.
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Project Fees
The cost to provide the Strategic Directions package only is$8,000 per community.The cost for the
Strategic Directions package and the Tourism marketing Plan is$12,000 per community.
Our standard payment program to be mutually agreed upon by both the Strategic Marketing Group and the
individual community is one-half payment upon agreement,one-half payment and one-half payment upon
submission of the final report.
This project comes with the Strategic Marketing Group guarantee for
SMG
your total satisfaction.
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