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SAN JUAN COUNTY HOTEL/MOTEL TAX

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Visitor Bureau's time is here

posted 03/31/03
San Juan Islands Visitor Bureau is official. San Juan County Commissioners voted 2-1 March 25, 2003 to approve a $300,000 contract with the Business Association of San Juan County for tourism promotion for 2003. The annual contract can be renewed for two more years. "Thank you all for your effort on this," said Commissioner John Evans. "The time is here. Way to go."

BASJC will serve as the Destination Marketing Organization (DMO) for the county. Doing business as the San Juan Islands Visitor Bureau, it will use the revenue generated by the new 2 percent hotel/motel tax passed in 2002. Commissioner Rhea Miller opposed the tax and voted against awarding the contract.

The bureau is authorized to enter into contracts with the chambers of commerce on the different islands for a total amount of not less than 12 percent of the contract price. San Juan County Prosecutor Randy Gaylord said, "In the past the Chambers of Commerce have acted in fractured ways. Money will pass through to them only if they get together and coordinate their activities." The money can only be awarded after a joint, coordinated proposal for visitor promotion services is approved by the Lopez, Orcas and San Juan Island Chambers of Commerce and the SJIVB.

The county's Visitor Information Service (VIS) which has provided information about tourism related facilities and businesses in the county will continue its operations. Under the contract, VIS can receive up to 18 percent of the $300,000. SJISB President Mike Stolmeier said, "We're happy to have them continue as long as they want to."

The contract allows SJIVB to contract with the county's Economic Development Council for monitoring and measurement services for a minimum of $5,000 per year.The analysis may include:

  • baseline measurement of existing facilities, seasonal demand, occupancy levels and dolar volume of business;

  • analysis of advertisement and tourist promotion by other individuals and agencies;

  • survey of visitors before and after their visit to the county;

  • and an analysis of existing and new data to be collected regarding tourism.

The SJIVB budget will be approved by the county each year. The first budget is scheduled to be reviewed March 31, 2003. At last week's meeting, Miller asked Stolmeier if it was true that the bureau has retained a lawyer for $15,000 per year.

Stolmeier said Attorney Gregory Duff has been paid $1,000 for working on the contract and has suggested a retainer of $1,000 per month for the rest of the year. "Basically, he is building a foundation for contracts," he said. "There is a lot of work for him to do."

Gaylord said there are tight controls over the funds. Invoices will be submitted quarterly. The contract states: "In no event will San Juan County pay for expenses not related to advertising, publicizing or otherwise contributing information for the purpose of attracting visitors and encouraging tourist expansion or expenses reasonably related to providing such services as reflected in the Annual Plan and Budget."

SJIVB Marketing Director Deborah Hopkins has begun setting up the bureau's office in the San Juan Island Chamber of Commerce office on Spring Street in Friday Harbor. The phone number is 360.378-3277.


BASJC chosen as DMO

posted 12/18/02
Contract details regarding the $350,000 contract still need to be worked out, but the Business Association of San Juan County has been chosen to be Destination Marketing Organization (DMO) for San Juan County. In a split vote, the Board of County Commissioners agreed with the Lodging Tax Advisory Committee's (LTAC) recommendation. Commissioner Rhea Miller voted against the motion.

A LTAC subcommittee, led by Jim Nelson, will work out the contract details. They expect to present a draft contract to the BOCC mid-January, 2003. The BOCC did allocate 12 percent ($42,000) to be shared by the three chambers of commerce and 18 percent ($63,000) for the county's Visitor Information Service. The remaining $245,000 will be used by the BASJC to promote tourism.

County Auditor Si Stephens said the amount would be $295,000 if the Town of Friday Harbor decides to add its promotion budget to the fund.

The BASJC proposal included two full-time employees - an executive director and a communications director - for a total of $126,500 in salaries and benefits. The BASJC was formed in 2000 as a county-wide business association. It was renamed the San Juan Islands Visitors Bureau before submitting a proposal to become the DMO.

LTAC member Dick Evans held a minority opinion which he shared with the BOCC. He said, "My recommendation was to hire an outside agency for marketing and cut the overhead of BASJC. Until you sell something, you don’t bring back revenue. I don’t want to keep salaries growing, I want to keep them low."

Commissioner Darcie Nielsen said, "I have no doubt folks need to be paid to do this work." She suggested a percentage be allocated to the county's Economic Development Council for tracking the effectiveness of the marketing.

LATC member Cathaleen Cavanaugh said, "I don’t think we need to address it right now. We'll be asking for $5,000." Since most of the data will be compiled by staff from the separate organizations, that amount should be sufficient, she said.

John Evans praised the LTAC's work. He said, "To say I am encouraged is an understatement." He stressed the importance of a coordinated program that respects what islanders treasure about the islands. The continuance of the county's VIS was also important. "VIS has done an outstanding job," he said. "It is a key element we would like to have continued."

Commissioner Rhea Miller has opposed the imposition of the additional 2 percent hotel/motel tax to be used solely for tourism promotion. The original 2 percent will be used for the county fair, parks, theaters, museums and historical societies. "I am disappointed in the LTAC recommendation. This was one of the most irregular processes I've ever seen. The RFP (Request for Proposals) went out without our approval," she said. "The process was so irregular it should have been done again. I don’t believe it is representative of the Orcas, Lopez or San Juan community." She noted for-profit organizations were allowed to submit even though originally the LTAC had specified non-profits only. Several members of the LTAC belong to the BASJC, she said.

Commissioner Darcie Nielsen said, "I had initial concerns about the RFP process, but this is a new program. There will be bumps on the road."


Trio of tourism promotion proposals presented

posted 12/09/02
A three-day, three-island marathon, Scrabble contest weekends, San Juan Islands Food and Wine Festival are a few of the ideas presented by a Seattle firm seeking to become the destination marketing organization (DMO) for San Juan County. Three proposals were received by the Lodging Tax Advisory Committee (LTAC) which will rate the proposals and present the results to the Board of County Commissioner December 17, 2002.

The LTAC needs to select a DMO to use the estimated $350,000 collected through the new 2 percent hotel/motel tax on lodging facilities. The increased tax went into effect October 1, 2002 and is to be used exclusively for promotion of tourism. Off-season tourism and education were to be emphasized.

The Business Association of San Juan County renamed itself the San Juan Islands Visitors Bureau and presented a proposal with a $360,000 budget. Membership dues of $11,000 from its current members were included in the revenue. They would create a traditional convention and visitors bureau (CVB) to serve as an umbrella DMO for the county. The SJIVB would "concentrate its efforts on leisure travelers, meetings and retreats (rather than conventions), and focus on market niches unique to the San Juan Islands such as eco-tourism, soft adventure, etc."

Two full-time employees (an executive director and a communications director ) would be hired for a total of $126,500 in salaries and benefits. According to the SJIVB, the three Chambers of Commerce have conceptually agreed to contract as satellite visitor information centers for each island if SJIVB is selected as the DMO. Until the chambers are ready, the SJIVB would contract with the current Visitor Information Service staff.

Education and training were part of the SJIVB proposal. Annual hospitality training for tourist business staff would be conducted. Creative visitor tracking measures such as "stamping visitor dollars" might be instituted. Working with the local schools to educate students about tourism was another idea proposed.

The SJIVB would "promote the San Juans as a year-round destination -- averaging 247 days of sunshine and half the rainfall of Seattle -- in all marketing materials." They would "develop and/or resurrect and/or support festivals during the shoulder and quiet seasons." Due to the limited budget media relations strategies rather than advertising strategies would be used to "send targeted messages to targeted audiences and niches."

The SJIVB ideas for events:

  • Return of the Orcas Festival
  • Good-Bye to the Orcas Festival
  • Jazz Festival
  • Winery Festivals
  • Fly Like An Eagle Festival (with local musician?!)
  • Return of the Salmon Festival
  • Yacht Tour Festival
  • Cycle the San Juans Festival, Kayaking Festival
  • Oyster Festival
  • Harvest Festival
  • Christmas Ships Festival

Meg Partridge and Ron Hall of Lopez Island presented a $250,000 proposal which included salaries of $50,000 for each of them. They would utilize the hotel/motel tax to promote county-wide tourism during off-peak seasons, focusing on the enhancement and further development of existing tourism activities within the islands, in coordination with the VIS and the Chambers of Commerce.

Market research would include visitor and business surveys. Figures from the Washington State Ferries and the county's auditor's office would be analyzed in regard to tourism.

"Guerilla" advertising activities would include articles, reviews, news spots created or disseminated at no cost by media organizations in the greater Northwest. The budget includes $20,000 to develop a Web site listing activities, events and information about the San Juans.

Examples of activites and events included:

  • Harvest Festival (October)
  • Arts and Crafts Fair (November)
  • Christmas As It Was (December)
  • Writers and Readers Event (January)
  • Valentines in the San Juans (February)
  • Quilt Festival (March)
  • Gardens of the San Juans (April)
  • Wool Festival - Sheep to Shawl (May)

Richmond Public Relations firm's proposal $245,000 budget includes $110,000 for the firm and $80,000 for events. "We will work with you to promote the San Juan Islands to a wide-range of local, regional and national media. Our goal is to increase awareness of the San Juans as a destination and drive business during the shoulder and off seasons through major press coverage in consumer and trade publications. We will create a series of annual events that drive visitors to the San Juans as a destination. We will work with the local chambers and V.I.S. to develop outreach programs that benefit residents and visitors alike."

Ideas for events included:

  • San Juan Islands Marathon
    The country's only three day, three island marathon. Participants run 8 1/2 miles each day on San Juan, Orcas and Lopez Island in any order they like. This will require a minimum two-night stay on at least two of the islands. Seek sponsorship with Runners World.

  • San Juan Islands Food and Wine Festival
    Bring a national Chef (Mario Batali), regional Chef (Tom Douglas) and a local Chef (Christina Orchid) together for a celebration of food and wine from the Islands. Work with the Washington Wine Commission to support and promote the event. Seek partnership with Sunset Magazine, Seattle Magazine, etc. to sponsor and promote the event. This could be a three-day weekend event tied into a larger food festival.

  • The San Juan Games
    We will develop an annual San Juan Games Weekend that can take place at several locations around the islands catering to a wide variety of passionate gamers (Crossword, Scrabble, Chess).

  • San Juan Islands Music Festival
    Host a series of concerts over a period of four consecutive weekends. Partner with the Northwest Chamber Orchestra, the University of Washington and others. Hold Saturday afternoon "Master Classes" for local school children.

Market research would include "surveys to be handed o