HomeMy WebLinkAboutBozeman Tourism Business Improvement District Work Plan and Budget for Fiscal Year 2012.pdf
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Jim Robbins, Vice President, Bozeman Tourism Business Improvement
District
Daryl Schliem, CEO Bozeman Chamber of Commerce, Director Bozeman
Tourism Business Improvement District
SUBJECT: Bozeman Tourism Business Improvement District Work Plan and Budget
MEETING DATE: August 22, 2011
AGENDA TYPE: Action
RECOMMENDATION: Approve the work plan and budget of the Bozeman Tourism Business
Improvement District for Fiscal Year 2012.
BACKGROUND: The City Commission created by Resolution No 4182 on July 6, 2009, the
Bozeman Tourism Business Improvement District, pursuant to the provisions of Title 7, Chpt 12,
Part 11, MCA for the purpose of aiding tourism, promotion, and marketing within the district.
The Board of Trustees for this district were created by Ordinance No. 1765 effective September
10, 2009. It is required that the board submits to the governing body for approval a work plan
and budget for the ensuing fiscal year. After approval of the work plan and budget the governing
body shall by resolution levy an assessment upon all of the property in the district.
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: FY10/11 year in review
FY 10/11 reported overnight stays
FY 11/12 budget
FY 11/12 work plan
330
DRAFT Fiscal Year 10/11 TBID Year in Review
Association & Convention Market:
1) Booth designed by Flying Horse Communication for trade shows
2) Meeting planner designed by Flying Horse Communication.
3) Visual identity developed by Flying horse Communication.
4) Developed temporary meeting planner website at meetinbozeman.com.
5) Attended Professional Meetings and Convention Associations (PCMA) annual event. Lead
development on going.
6) Attended HSMAI Affordable Midwest meeting planner event in Chicago. Lead development in
process.
7) Attended Montana Society of Association Executives annual meeting. Supported local hotelier
effort to bring state meetings to Bozeman.
8) Communication plan for meetings developed by Flying Horse Communication.
9) Approved internet initiative with CVENT, an RFP generator that brings destinations and meeting
planners together.
Leisure Market
1) Purchased warm season ad campaign with Mercury CSC.
2) Attended Rocky Mountain International (RMI) Round Up, a consortium of international tour
operators selling this region to potential European leisure visitors. At least one contract signed to
date.
3) Became member of the Montana Lodging and Hospitality Association.
4) Approved some secondary support to the overhead of the Log Cabin Visitor Information Center.
5) Attended Montana Governors Conference.
6) Approved Billboard campaign.
7) CVB had primary focus.
Sport Tournament Market
1) Supported the State A Basketball Tournament March 3-5 2011. This event became available in
late 2010 and TBID funds made it possible.
2) Participated in effort to bring the State Showcase Soccer Tournament to Bozeman, bid failed.
Bozeman now ranks higher for the 2012 bid.
3) Participated in the Gallatin Valley Tournament Committee future bidding efforts.
4) Ongoing discussion with the Montana Open Wrestling Tournament.
5) Advertised in Sports Destination Publication.
Group Tour Market
1) No significant programs in 2010/11
331
Event Market
1) Supported upcoming Bozeman Ice Festival.
2) Supported Simms Ice Out Event.
3) Approved future support of fairgrounds business plan.
4) Approved Support of 2013 religious event at MSU.
Film Market
1) No significant programs in 2010/11
2) CVB Focus
Administrative:
1) Developed first marketing plan and budget
2) Developed reporting process and applicable forms.
3) Developed grant application form.
4) Instituted $500 fee for late reporting.
5) Added Bozeman Belgrade Lodging Association Representative to the advisory board (non-
voting).
6) Approved authority for TBID director to spend up to $500 without board approval, two signatures
still required.
7) Approved checks of $50 or less would require only one signature.
8) Approved credit card for sales person for travel expenses.
9) Sponsored two special hotelier meetings on the convention center topic.
10) Carried on lengthy discussion on the process of TBID board appointment recommendations to
the city, no changes were recommended.
11) Attended two statewide TBID meetings.
332
Parcel #FY 10/11 fee overnight stays
Hilton Homewood Suites RGG45545 21753
Western Heritage RGG21803 8317
La Quinta RGG4573 11724
Holiday Inn RGG4806 32397
Days Inn RGG1795 23143
Rodeway Inn RGG53120 8233
Comfort Inn RGG6415 24552
Lewis & Clark RGG5431 8343
BW Grandtree RGG6645 29312
Ramada Limited RGG4626 11713
Super 8 RGG1899 20809
Hampton Inn RGG5885 15438
Fairfield Inn RGG4733 10770
Bozeman Inn RGG2207 7451
Imperial Inn RGG4174 Closed
Royal 7 Budget Inn RGG6127 11705
Residence Inn RGG33550 22613
Blue Sky Inn RGG4134 2074
Wingate RGG41144 19865
Ranch House Hotel RGG5929 3740
TLC Inn RGG4301 9812
Manuson City Center RGG3507 10819
Microtel Inn & Suites RGG4521 11697
Moutainview Lodge and Suites RGG28538 4955
C'Mon Inn RGG9829 28510
Hilton Garden Inn RGG45545 30273
Budget Inn Express RGG3585 3754
Rainbow Motel RGG5538 4214
Total fee overnight stays 397986
333
Jul '11 - Jun 12
Ordinary Income/Expense
Income
Program Income
Projected Collections 405,000.00
Total Program Income 405,000.00
Total Income 405,000.00
Expense
Administration Expenses
Administration / Payroll 95,250.00
Insurance 2,000.00
Interest Expense LOC 1,500.00
Legal / Accounting 1,000.00
Total Administration Expenses 99,750.00
Marketing / Advertsing
Association & Convention Market 75,000.00
Leisure Market 68,000.00
Sports / Tournament Committee 64,000.00
Event Market 30,000.00
Group Tour Markets 10,000.00
Joint Ventures 26,000.00
Strategy 32,250.00
Total Marketing / Advertsing 305,250.00
Total Expense 405,000.00
Net Ordinary Income 0.00
Net Income 0.00
11:02 AM Bozeman Tourism Business Improvement District
07/26/11 Profit & Loss Budget Overview
Accrual Basis July 2011 through June 2012
Page 1
334
1
DRAFT BOZEMAN TOURISM BUSINESS
IMPROVEMENT DISTRICT
WORK PLAN
Fiscal Year 2011/2012
Mission Statement
The Bozeman Business Tourism Improvement District’s (TBID) mission is to
enhance the economic vitality of Bozeman by generating room nights for the city’s
lodging facilities through effective sales and marketing strategies, building
collaborative partnerships and promoting Bozeman as a year round visitor,
convention and event destination.
Positioning Statement
The Bozeman TBID will work in conjunction with the Bozeman Area Chamber of
Commerce/Convention and 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 Business 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 welfare of the
inhabitants of the district and of the people of this state;
(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.
335
2
Overall Marketing Considerations
While the markets the Bozeman TBID will pursue vary in many ways, the following
themes will be constant throughout all of the Bozeman TBID sales and marketing
efforts.
1) The overall amount of business that results from the Bozeman TBID sales
and marketing efforts should be as equitable as possible 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 as one-third of summer levels.
The Bozeman TBID will make these lower occupancy months first priority
when considering opportunities and marketing options.
3) Larger events have the greatest impact on the district as a whole and will
be pursued accordingly.
Market Strategies and Objectives
The six markets: 1) associations and conventions, 2) leisure, 3) sport tournaments,
4) large events and 5) group tours, 6) film have the most potential for increased
tourism expenditures in the City of Bozeman.
1) Association & Convention Market-
Social Clubs, Educational, Environmental, Government, Recreation,
Religious, Military, and Corporate.
With 2,017 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 future citywide conventions/meetings in Bozeman .
Provide 60 market segment leads to all district hoteliers.
Execute one Familiarization Tour for national conventions.
Strategy
Attend 4-6 national conferences directed at group organizers to generate
qualified leads. Currently approved for 11/12 are
Collinson Connect 1-1 meeting event in Chicago.
Hospitality Sales and Management Association International
(HSMAI) meeting planner event, Washington DC.
Maintain membership with Montana Society of Association Executives
and attend annual convention. Support conference hotels’ efforts to
bring instate meetings to Bozeman
Pursue contacts within organizations that are likely candidates for large
conventions and meetings here in Bozeman.
336
3
2) Leisure Market (CVB focus)- Regional, National & International
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 of 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 Leisure Objectives
Present Bozeman as the ideal gateway town to the Yellowstone National
Park leisure visitor.
Compliment Bozeman CVB efforts and buy in to Bozeman CVB marketing
efforts that generate overnight stays during appropriate seasons.
Showcase Bridger Bowl to surrounding areas and feeder cities to create
more winter visitation.
Present Bozeman in international market places to create more interest
for Bozeman as an entry to Yellowstone.
Collaborate with local regional partners to present Bozeman as a world
class ski town to a regional and national audience.
Present Bozeman to the I-90 drive through traveler as the ideal
overnight location.
Leisure Strategy
Develop an advertising campaign with Bridger Bowl utilizing print and
the internet to pull winter visitors from the region.
Develop an advertising campaign for feeder cities to promote Bozeman
as a world class ski destination with Bridger Bowl, Big Sky and
Moonlight Basin ski areas.
CVB Strategy (see CVB marketing plan for details)
Build significant internet presence utilizing the CVB website in
conjunction with facebook, alltrips.com ,
nationalgeographic.com, yahoo, tripadvisor and paid keyword
searches on search engines.
Advertise in the final Montana Winter Guide.
Maintain CVB Website
Maintain phone call fulfillment center
Develop outdoor advertising campaign to pull visitors from I-90.
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 Tournament Objectives
Increase the volume of Montana High School Association (MHSA)
tournaments per year.
Add 2 future non-MHSA city wide tournaments.
Tournament Strategy
Support the Gallatin Valley Tournament Committee .
Continue to develop relationships with local and state youth sports
organizations to foster state wide youth tournaments in Bozeman.
337
4
4) Group Tour Market - Motor Coach
Bozeman’s proximity to Yellowstone as a gateway city, 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.
Key Group Tour Objectives
Develop 50 motor coach leads to district hoteliers.
Present Bozeman professionally to tour companies
Group Tour Strategy
Participate in National Tour Association Annual Event ( NTA) and
maintain membership.
Seek out Group Tour Companies interested in Bozeman an build
relationships.
5) Event Market- Concert, National Events and Local Events
With the Montana State University’s 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 Event Objectives
Collaborate with organizations in Bozeman that have the capacity to
bring and execute large events in Bozeman that produce overnight stays.
Help facilitate the creation of 1 new city wide event.
Event Strategy
Collaborate with Montana State University to increase the number of
national level concerts.
Contact local and regional event promoters and coordinators.
Research successful event concepts in other similar cities.
6) Film- (CVB Focus) The Gallatin Valley has much to offer to a diverse group
of visitors from film production to international visitors.
Key Film Objectives
Entice filming companies to the Bozeman area.
Film Strategy
Develop an incentive program to entice filming into the Gallatin Valley.
Research and participate in site selection programs.
CVB strategy
Film festival catalog print advertisement.
Participation in Sundance Film Festival and cultivate leads for
future film opportunities.
338
5
Marketing Message
Marketing message will utilize the recently developed visual identity and 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.
o Answer: Sell Bozeman as a value package to the spring, winter
and fall traveler.
Similar destinations: Missoula, Billings, Boise, Helena, Great Falls,
Jackson Hole, Cody, Whitefish/Kalispell/Columbia Falls, Couer d’Alene,
Idaho Falls, Pocatello.
o Answer: Promote the unique group of characteristics that
differentiate Bozeman from competing destinations
Time: busy schedules are limiting vacation time.
o Answer: Market to the regional traveler who is interested in
staying close to home and support an increase of direct flights
that make Bozeman a more convenient destination.
Lack of a convention center. Answer:
o Continue to facilitate discussion on a Bozeman convention
center.
The higher cost of airfare to and from Bozeman.
o Answer: Continue to work with the airlines and the Gallatin
Valley Airport to support increased air traffic and value.
Chamber/TBID/CVB Structure
The recent executive decision to combine the TBID and CVB marketing positions
will allow for many organizational, marketing and monetary efficiencies moving
forward. Over the next twelve months, while the existing CVB marketing plan is in
place, the Bozeman Chamber of Commerce will work towards realigning these two
marketing organizations so they can present Bozeman in a unified manner that will
produce the best possible results for all stakeholders.
339