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Home My WebLink About _ 4.1(a)--Redding Tourism and Marketing Group 2023-24 Annual ReportT Y OF REDDIN CALIFORNIVCITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: October 17, 2023 FROM: Jason Gibilisco, Management ITEM NO. 4.1(a) Assistant to the City Manager ***APPROVED BY*** 61 7aSa � ifi o," i7nagvi7C TI 5411 4'i 9�IW"�14j %�4tOla� T 1�"�"G(�� 1PAllL7 diJ� a IUf�/242� jgibilisco@cityofredding.orgbtippin@cityofredding.org SUBJECT: 4.1(a) --Consider Annual Report of the Redding Tourism Marketing Group 2023- 24 Annual Report. Recommendation Adopt the Redding Tourism Marketing Group 2023-24 Annual Report. Fiscal Impact There is no fiscal impact for receiving this report. Background/Analysis In 2008, lodging property owners in the City of Redding (City) chose to assess themselves two percent of every paid stay to collect additional money to be used for promoting the City with the purpose of increasing overnight stays. These assessment funds were used in conjunction with the City's transient occupancy taxes (TOT) to support the Redding Tourism Marketing Group (RTMG) in marketing our region. In 2021, the City opted to change marketing vendors using the TOT funds. The two percent assessment funding continues to go to the RTMG which continues to market our region. The RTMG follows the Property and Business Improvement District Law of 1994, Streets and Highway Code Section 36650 et seg., and in accordance with this code, is required to provide this annual report to be filed with the City Clerk. Environmental Review This is not a project defined under the California Environmental Quality Act and no further action is required. Report to Redding City Council October 10, 2023 Re: 4.1(a) --Redding Tourism and Marketing Group 2023-24 Annual Report Page 2 Council Priority/City Manager Goals • This agenda item is a routine operational item. Attachments ^RTMG 2023-2024 Annual Report REDDING introduction Redding Tourism Marketing Group (RTM0), brings together more than a decade of expe- rience in the hospitality sector. The RTMG is honored touse that experience topromote the city of Redding as the ultimate destina- tion for meetings, outdoor events, bus tours, and conferences. &svveset our sights nnthe 2023-2024 mission, the primary goal is to spotlight Redding'slodging through acom- prehensive approachairnedatincreasing overnight stays. A1the core ofATMO'smission isafocused sales strategy, fostering relationships with tour and event organizers. |ncollaboration with |oca|dubs.RTMGvvi||work toentice outside events tmchoose Redding ostheir next venue as well as helping local events expend. It is important to note the ATMO relies solely on contributions from a se|f-as- sessrnent-TheTourisrnBusiness|rnprove nnentC)istrict(TB|D). Therefore, all pnnrnmtinna| activities will align with the laws governing TB|[)assessments in the State of California, ultimately bene- fiting those who currently contribute to the enefitingthosevvhocurrent|ycontributetothe district's success. Part ofthat funding will beused tooffer various types ofsupport tn prospective groups. There are noproposed alterations tothe methodology orbasis oflevying assessments ascompared tothe 2O22-2023year. The current allocation offunds between mar- keting and administrative expenses remain unchanged. There are nomodifications to the district's geographical boundaries or classification ofbusinesses within those boundaries. The TMB|Doperates inaccordance with the l994Property and Business Improvement District, specifically governed byStreets and Highway Code Section 3665Uetseq. The 2O23-ZO24fiscal year will commence with anestimated rollover of$1,5527OO.provid- ing an approximate marketing budget of $3'O76.9OOwhen combined with projected revenue. The assessment structure remains unchanged, with Redding lodging required tocontribute two -percent ofshort-term room rentals (stays of3Odays or less) and the City ufRedding collecting aone-per- centadministration fee. It is important to emphasize that all Tk4B|Ofunds are dedi- cated exc|usive|ytoinitiativesout|inedinthe TMB|DManagement Development Plan, intended for the direct benefit ofthose who remit those assessments. The district encompasses all short-term lodging available for public occupancy, both presently operating and those planned for the future, asillustrated inthe accompany- ing map. TMBID Boundary Map Redding Tourism Marketing Group 2023-2D24Strategic Plan 01 IBM Meetings andTour Groups RTMOviU implement new marketing plan that not only aligns with the board's top priorities but also enables the team to swiftly respond toevolving circumstances. Astravel and tourism demand continues 10 grow globally, ATMO is positioning itself to expand upon being exclusively dedicated to Aedding'sgroup business. The ATIVI{}team will beattending prominent industry events tn heighten awareness and leverage the benefits nfchoosing Redding as a preferred destination. The primary sales focus will revolve around cultivating leads and nurturing personal connections with event planners. In tandem with the sales effort, the team isinthe process ofrevamping the Choose Redding Lodging website tobecome the leading resource for meeting and event p|an' ners.asvve||astourhusoperators.seeking information on Redding. |nsupport ofthe sales effort and website enhancements, vvehave outlined amulti- faceted approech. * Search engine marketing (SEM); Optimizing our online presence u»ensure vveare discoverable bypotential clients through search engines. * Targeted digital display ads: Campaigns will be targeted to effectively reach our desired audience. * Social media advertising: Engaging campaigns will promote Redding asthe preferred destination for events and group travel. * Printed collateral distribution: Brochures and sell sheets will bedistributed directly tostrengthen our offline presence. Redding Tourism Marketing Group 2023-2024 Strategic Plan 02 Growing Local Events In concert with establishing new meetings and tour bus opportunities, the ATMCteam will encourage the expansion wfannual favorites within the Redding community such asKno|April Nites.the Redding Rodeo, Redding Garden nfLights, and Redding Roots Revival. Tnassist other organizations to become one ofRedding'scherished annual events, vveintroduced asponsorship pro- gram accessib|ennthe[homseRedding Lodging website. Clubs and organizations can apply for financial support tnattract a broader audience ofvisitors from outside the area and expand upon the overall experience for attendees. Creative Support RTM(] is geared uptocreate a newly minted resource library ofcaptivating meeting and event imagery, including a treasure trove of high-resolution photos for lodging proper- ties to use free of royalty fees. Bycurating aselection oficonic photos, tour operators will have content that is readily accessible to incorporate into their itineraries. The goal is to elevate the appeal and profes- sionalism of our district's offerings. As local events gain momentum, street light banners will bedesigned tuenhance the spirit and excitement of our beloved city's events. Targeting and Data Driven Decisions Oatafyisaresearch company specialized in furnishing visitor data. ATMG uses this data toanalyze visitor trends and determine emerging target markets for future market- ing directives. Data accumulation over the past several years shows the greater Sacra- mento areaandtheBayAreaasrnbustrnar- ketsforAedding. These markets along with the California North Coast and Southern Oregon markets will be a major focus for marketing efforts in the coming year. This marketing tool ensures our marketing initiatives remain agile and high|yresponsivetotheevepchanging|and- Infrastructure and Communi�y suppw"t Aopreviously discussed, the Choose Redding Lodging website is set to feature an online application for organizations seeking tourism grants. In addition tnactivating grant oppor- tunides.funds will beallocated towards enhancingairconnectivity,faci|itatingfi|rn- ingnpportunities.andirnprovingtheinfrastructure of local sports complexes. - International travel isonthe rise. PTM(] intends tnreenter the international mar- keting arena with l96orless ofthe bud- get. PTMG will partner with Visit California and Brand USA on cost effective interna- tional opportunities. The Tour Operator portal page will connect PTMOwith group tour leaders throughout the Canada, Mex- ico' Europe, and Pacific markets. China Visit Tour's social platform will bethe travel inspi- ration and planning tool for the Asia market. Key Performance Indicators (KPIs) mom Wd" Redding Tourism Marketing Group 2023-2024 Strategic Plan 03 Property KPI Targets 2023/24 Target 2021/22 Length of Stay as % of Year Targets y Interest MWNL6 OUTDOOR RECRE.Akff ION Paddling, Agriculture, Biking, g"nowoXw 101, Hiking, Fishing, Classic Cars Weekday % of Visitor Days Occupancy % TOUR BUSES Seniors, School Field Trips Tactical Approach Redding Tourism Marketing Group 2023-2024 Strategic Plan 04 Executive Retreats Team Building, Field Trips Group'Target `audience fo. r OvernightStas TOUR BUSES ass Biking, Hiking, Equestrian, National Designations Fishin g, Youth Sports '110011 & CONFERENCES oew\i Associations, Gamin n Gaming, Youth Sports, Chess, Etc. Government Tactical Approach Redding Tourism Marketing Group 2023-2024 Strategic Plan 04 Concluding Summary |ngeneral, the ATMGwill use various tactics tuleverage the growth potential for group and event -based travel, while shifting to target a more business -minded traveler. Funds will beused toshowcase amenities, unique experiences, and sound infrastructure. The aim is to reach targeted audiences and highlight the region's best attributes for events and group travel, while also helping local events position themselves tobecome tourism attractions. Specifically, email marketing serves as a valuable addition to the marketing strategy for event and meeting organizers. Tbfacilitate effective email/newsletter distribution, the upcoming year will be dedicated to crafting a precisely targeted email distribution list. The ongoing website revamp aims to transform it into a comprehensive planning tool tailored for group organizers. While the booking engine retains its function, itprimarily serves asanenticing element tmdraw users toexplore the vvebsite—a captivating advertising hook. The shift towards a group -oriented rather than leisure travel -centric website requires group focused visuals inthe form wfvideographyand photography. Both in-house and contracted talent will contribute tomeeting this demand. Messaging will reflect the Pedding culture with copy that motivates potential group business. Amid the intensified focus onmarketing for groupsandevents, the currentyea rrnarks a pivotal phase for the RTMG organization— the renewal of the TBID. Entrusting Civitas with the entire process underscores their role asthe lead driver this time, with RTM(] assuming e supportive ro|e, a departure from its previous leading role inthe process. Redding Tourism Marketing Group 2023-2024 Strategic Plan 05 6 ... . .. ............ . .... . ... ....... "I'll, 4000 Revenue 81.5% mktg. 14.5% admin. 1% city. 3% Contingency $1 400 000 00 Rollover: mktg $1,552,752.31 + admin. $83,242.21 + reserve $40,960 $1,676,954.52 Totalplanned spend $3 076 954 52 I 6711 .......... - . ......... City Fee - 1% ............. = $14,000.00 Marketing - 81.5% of TBID 6700 - ........... . Billboards $36,725.00 6701 SEM and Display Ads $65,600.00 6701.2 j Visit California Partnerships $57,000.00 6701.4 Website Development $28,440.00 6704 Print Advertising .......... 1$1900000 6705 Visit Redding Brochure Support 39,000.00 6706 TV -Radio for events . ..... - — ----------- 80,000.00 .. .. .. .... . . . 6707.4 1-1111111-111—� Office Misc - Pent/Utilities/computers . ... . .. ...... ........ I 31,000.00 6708 Computer hardware/software/Adobe/sage700000 6709 . ..... . ....... International .......... . ........... . ...... $10,900.00 Sports - Meetings - Tour Bus - Venue support $610,000.00 6718 Data $31,500 00 6720.1 1 Video and Photography . $70,000.00 6720.3 t Front Desk Training . . ....... --1- . i $24,000.00 ... ... .. .. ... ... 6727 Visit Redding Campaign Partnerships $45,000.00 6727 Group FAMS s15,000.00 6723 Social Ads ...... ..... — — - --- - ---- - --------------------- -- - -- ------- - - m. ................ -,-- $23,600.00 6725 Sponsorships $683,000.00 6730 Tradeshows 6,600.00 6735 � Give-a-ways/Deals $100,000.00 � Personnel (Marketing portion) � ' $466626.00 � Unallocated $223 76131 ?Marketing Subtotal a � $2,693,752.31 Administrative - 14.5% of collected TSID Personnel (Admin portion) 83.'845.00 Other admin& Operations ------------------------------------------- $191,700.00 - Unallocated -1 ------------------------------- .......... . ------ $10,697.21 - Admin Subtotal $286,242.21 Contingency/Reserve 311/o 6720.4 Legal - TBID renewal $4S,000.00 Unallocated - — -------------------- ------- 1 $37,960D0 Reserve Subtotal I Total Redding Tourism Marketing Group 2023-2024 Strategic Plan 06