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HomeMy WebLinkAboutBozeman Tourism Business Improvement District Work Plan and Budget.pdf Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Jim Robbins, Senior Vice President of Business Development and Marketing, Bozeman Tourism Business Improvement District Daryl Schliem, Bozeman Chamber of Commerce SUBJECT: Bozeman Tourism Business Improvement District Work Plan and Budget MEETING DATE: August 23, 2010 AGENDA TYPE: Action RECOMMENDATION: Approve the work plan and budget of the Bozeman Tourism Business Improvement District. BACKGROUND: Attached are the Bozeman Tourism Business Improvement District (TBID) Budget and Work Plan for FY 2010/2011. These documents will be presented at the City Commission meeting on Monday, August 23, 2010. If you have any questions regarding either of the budgets or work plans, please feel free to contact myself or Daryl Schliem at any time. Jim Robbins Senior Vice President of Business Development and Marketing Bozeman Tourism Business Improvement District 406-586-5421 fax 406-586-8286 bozemantbid2@gmail.com 2000 Commerce Way Bozeman Montana 59715 ALTERNATIVES: 1) Approve the work plan and budget with revisions. 2) Provide feedback and request significant revisions with a return to the Commission. 3) As suggested by the City Commission. Attachments: BTBID Draft Work Plan BTBID Profit and Loss Budget Overview 114 1 BOZEMAN TOURISM BUSINESS IMPROVEMENT DISTRICT DRAFT WORK PLAN Mission Statement The Bozeman Business Tourism Improvement District’s (BTBID) mission is to enhance the economic vitality of Bozeman by generating room nights for the cities lodging facilities, which then benefits restaurants, retail stores and attractions, through effective sales and marketing strategies, building collaborative partnerships and promoting Bozeman as a year round visitor, convention and event destination. Positioning Statement The BTBID will work in conjunction with the Bozeman Area Chamber of Commerce/Convention Visitors Bureau to position the city of Bozeman as the destination of choice for visitors looking for the full Montana experience. The small town atmosphere of Bozeman, 55,000 sq feet of convention space, proximity to world class outdoor recreation and Yellowstone National Park, excellent lodging and restaurants, majestic mountains and vast open spaces make Bozeman the premier year round destination in Montana. Purpose as defined by the State of Montana The purpose of the Bozeman Tourism Improvement District as defined by section 7-12-110 of the Montana Code Annotated: (1) Serve a public use; (2) Promote the health, safety, prosperity, security and general well fare of the inhabitants of the district and of the people of this state; 2 (3) Be of special benefit to the property within the boundaries of any district created pursuant to the provisions of this part; or (4) Aid in the tourism promotion, and marketing within the district Markets and Objectives While the markets the Bozeman TBID will pursue vary in many ways, the following themes will be constant throughout all the Bozeman TBID sales and marketing efforts. 1) Business that results from the Bozeman TBID sales and marketing efforts should be fair and equitable throughout all of the lodging facilities in the district. 2) The seasonality of Bozeman’s tourism heavily favors the summer months. During the shoulder seasons and winter months, the occupancy in Bozeman’s lodging facilities can run as low one-third of summer levels. The Bozeman TBID will prioritize the lower occupancy months when considering opportunities and marketing options. 3) Larger events have the greatest impact on the district as a whole and will be pursued accordingly. 4) After defining and establishing the brand of Bozeman tourism, apply the resulting message throughout all sales and marketing efforts. The five markets: 1) associations and conventions, 2) leisure, 3) sport tournaments, 4) large events and 5) group tours, have the most potential for increased tourism expenditures in the City of Bozeman. 1) Association & Convention Market -Social Clubs, Educational, Environmental, Government, Recreation, Religious, Native American, Military, Corporate 3 With 2,294 hotel rooms and 24,000 square feet of meeting space within these hotels the city of Bozeman is positioned to host a variety of local and national conventions. Additionally Montana State University offers 31,000 square feet of meeting space. Key Objectives:  Book four citywide conventions/meetings in Bozeman  Provide 80 Market Segment leads to all district Hoteliers.  Execute one Fam tour for national conventions 2) Leisure Market In-State and Regional As a gateway city to Yellowstone Park, 45 minutes from Big Sky resort and 20 minutes from Bridger Bowl, close to the Yellowstone, Madison and Gallatin rivers and situated directly off 3 exits of I-90, the City of Bozeman is a major leisure destination for out of state, as well as in state travelers. Key Objectives  Entice visitors from the surrounding area and I-90 travelers to stay in Bozeman.  Showcase Bridger Bowl to surrounding areas and feeder cities to create more winter visitation. 3) Sports/Tournament Market - High School/College, Regional, National, Youth With the Brick Breeden Field House, Bobcat Stadium, the Gallatin County Fairgrounds ice rink, baseball stadium and rodeo arena, various soccer fields and parks the city has the capability to host many large sporting events. Key Objectives  Increase the number of Montana High School Association event in Bozeman.  Increase volume of non MHSA youth tournaments. 4) Group Tour Market - Motor Coach and Lifestyle Until recent years, the motor coach industry represented a significant portion of local tourism. Bozeman’s proximity to Yellowstone as a gateway city, 4 small town atmosphere, the Museum of the Rockies and wealth of lodging options make the City of Bozeman a perfect overnight stop for tour bus companies. The current price of airfare has pushed many tour operators to Salt Lake City, making their stop in Bozeman less likely. Key Objectives and Strategies:  Develop 75 Motor Coach leads for the TBID members  Present Bozeman professionally to the Tour Companies 5) Event Market Concert, National Events and Local Events With the Montana State University Brick Breeden 8,200 seat facility, Gallatin County Fairgrounds Rodeo venue and various smaller venues throughout the city Bozeman has the ability to host National events such as concerts, professional sporting events and national speakers. Key Objectives  Bring the CNFR back to Bozeman.  Bring a large rodeo event to Bozeman.  Build the calendar of large events in Bozeman. 6) Other Markets International and Film The Gallatin Valley has much to offer to a diverse group of visitord from film production to International visitors. Key Objectives  Entice filming companies to the Bozeman area.  Explore options internationally. Strategies 1) Association & Convention Market  Attend 4-6 national conferences directed at group organizers to generate qualified leads.  Become members of the Montana Society of Association Executives and attend annual convention. 5  Create collaborative view of the meeting and convention landscape with the general managers and sales staffs of the Bozeman lodging industry.  Host a Fam tour.  Pursue contacts within organizations that would be likely candidates for large conventions and meetings here in Bozeman.  Consider a meeting planner incentive program. 2) Leisure Market  Develop advertising campaign utilizing print and the internet to pull visitors from the surrounding area and I-90.  Develop advertising campaign with Bridger Bowl utilizing print and the internet to pull winter visitors from the surrounding area. 3) Sports/Tournament Market  Attend BCOC tournament committee meetings and increase Bozeman area MHSA offerings.  Develop relationships with local and state youth sports organizations to foster state wide youth tournaments in Bozeman.  Research and develop sponsorship options for large non-MHSA events. 4) Group Tour Market -  Attend one conference of tour group coordinators.  Develop promotional package for tour group coordinators.  Contact tour companies and develop leads. 5) Event Market.  Contact the CNFR about long term options.  Collaborate with the Fairgrounds and the PCRA to bring a rodeo to Bozeman.  Collaborate with MSU to increase the number of national level concerts.  Contact local and regional event promoters and coordinators. 6) Other Markets. 6  Develop an incentive program to entice filming into the Gallatin valley.  Attend events related to film production and site selection. Marketing Message “Bozeman, Montana’s Destination”, will be the catch phrase for the Bozeman TBID in marketing materials. Marketing messages will focus on:  Fantastic selection of lodging properties.  Proximity to Yellowstone National Park  4 seasons of limitless outdoor recreational opportunities.  Small town feel with unique and charming downtown.  Year round access from major cities.  Wonderful dinning, shopping and nightlife opportunities.  And the many other distinguishing aspects of Bozeman such as Bridger Bowl, Bohart Ranch, Montana State University and the Museum of The Rockies, Competition and Barriers The Bozeman TBID faces the following marketing challenges moving forward:  Economic Recession: groups, families and individuals are reducing spending and postponing potential visits.  Similar destinations: Missoula, Billings, Boise, Jackson Hole, Cody, Whitefish/Kalispell/Columbia Falls, Couer d’Alene, Idaho Falls, Pocatello  Time: busy schedules are limiting vacation time  Lack of a convention center.  The higher cost of airfare to and from Bozeman. 7 “Bozeman, Montana’s Destination”, will be the catch phrase for the Bozeman TBID in marketing materials. Marketing messages will focus on: Ø Fantastic selection of lodging properties. Ø Proximity to Yellowstone National Park Ø 4 seasons of limitless outdoor recreational opportunities. Ø Small town feel with unique and charming downtown. Ø Year round access from major cities. Ø Wonderful dinning, shopping and nightlife opportunities. Ø And the many other distinguishing aspects of Bozeman such as Bridger Bowl, Bohart Ranch, Montana State University and the Museum of The Rockies, Competition and Barriers The Bozeman TBID faces the following marketing challenges moving forward: Ø Economic Recession: groups, families and individuals are reducing spending and postponing potential visits. Ø Similar destinations: Missoula, Billings, Boise, Jackson Hole, Cody, Whitefish/Kalispell/Columbia Falls, Couer d’Alene, Idaho Falls, Pocatello Ø Time: busy schedules are limiting vacation time Ø Lack of a convention center. Ø The higher cost of airfare to and from Bozeman. 121 Jul '10 - Jun 11 Ordinary Income/Expense Income Program Income Projected Collections 450,000.00 Total Program Income 450,000.00 Total Income 450,000.00 Expense Administration Expenses Administration / Payroll 99,999.96 Insurance 5,000.00 Legal / Accounting 5,000.00 Mileage 5,500.00 TBID Meetings 1,650.00 Total Administration Expenses 117,149.96 Marketing / Advertsing Association & Convention Market 84,000.00 Leisure Market 57,000.00 Sports / Tournament Committee 54,000.00 Group Tour Markets 36,000.00 Event Market 30,000.00 Meetings and Conventions 12,250.12 Joint Ventures 21,600.00 Strategy 37,999.92 Total Marketing / Advertsing 332,850.04 Total Expense 450,000.00 Net Ordinary Income 0.00 Net Income 0.00 3:19 PM Bozeman Tourism Business Improvement District 08/12/10 Profit & Loss Budget Overview Accrual Basis July 2010 through June 2011 Page 1122