Tourism Promotion Areas October 22, 2014 Presented by: Becky Bogard, Bogard & Johnson LLC, facilitator George Sharp, Olympia-Lacey-Tumwater Visitor and Convention Bureau Katherine Kertzman, South Seattle Regional Tourism Authority

Tourism Promotion Areas What is a TPA? Why is it effective?

TPA Basics Grew out of need for more tourism marketing funds for convention centers – origins in Spokane Passed by legislature in 2003 – RCW Upon agreement of 60% of hoteliers and approval by appropriate local legislative authority, TPA is formed Only hotels with more than 40 rooms eligible to participate Fees may be up to $2 per room night and can be different within the TPA Legislative authority contracts with tourism destination marketing organization or a similar organization to administer the program Upon petition, hotels may dissolve TPA

An Alternative – Parking and Business Improvement Area Been in statute since 1971 and amended several times – RCW 35.87A Often used to generate funds for downtown cleanup programs Seattle used it to generate funds for tourism marketing Similar process to TPA for formation and dissolution Must show benefits to specific businesses included in program No statutory limit on fees and tourism businesses other than hotels could be included

The Thurston County Experience George Sharp, Executive Director Olympia-Lacey-Tumwater Visitor and Convention Bureau

Thurston County Tourism Promotion Area Background Olympia Lacey Tumwater Visitor and Convention Bureau staff and board began discussion with area hoteliers in 2003 to establish a TPA Over the years elected officials and VCB board met with hoteliers to establish TPA 2010 TPA stalled do to lack of confidence in the VCB to administer the program 2011 TPA discussion renewed with new Executive Director hired, budget developed, signature gathering process began and VCB drafted all documents necessary for establishment of TPA (Petition, Interlocal Agreement, Contract) Meetings with Cities of: Olympia, Lacey, Tumwater and Yelm and Thurston County to create a interlocal agreement, continued meeting with Thurston County Lodging Association on budget and marketing plan

Thurston County Tourism Promotion Area Background June % of hoteliers sign petition to create TPA July 2013-County Commissioners agree to be the financial agency for the funds. Ordinance Drafted, 30 day waiting period prior to hearing. November 2013 Ordinance approved, Department of Revenue Notified April , TPA funds begin being collected July 1, 2014 Contract established between Thurston County and VCB for VCB to serve as the Tourism Promotion Area Manager July 10, 2014 First deposit received

Thurston County Tourism Promotion Area Key Factors 60% of Hotels need to agree to establish TPA: Concerns were: $ fee per night, will consumers balk or make decision to go other places (finding-no) Input into budget and marketing plan (worked with Lodging Association and 7 member TPA commission to create budget) If it doesn’t work or not satisfied, can we kill it? (50% vote of hotels collecting the fund can dis-established the TPA) Four Cities and County had to agree to work together and sign the interlocal agreement and allow 1 jurisdiction have authority over the funds

Thurston County Tourism Promotion Area Key Factors County and VCB had to agree to contract for VCB to be the TPA Manager (Hotelier insisted it be the VCB to be the TPA Manager) Seven member TPA Commission consisted of Hoteliers recommended by the Thurston County Lodging Association to be approved by the board of County Commissioners 75 day processing period by Department of Revenue before funding can start being collected. Funding collection only begins at the beginning of a quarter Trust, Integrity, Honesty, Personalities, Politics, Perseverance were the key Results: Additional $760,000 available per year for Marketing Thurston County for a total combined budget of $1,100,000. New funds used for Staff, Marketing, Public Relations, Product Development with emphasis on meetings and the leisure market

Seattle Southside – Innovative Structure Katherine Kertzman, Executive Director Southside Seattle Regional Tourism Authority

Current SSVS Revenue & Service Structure

Proposed Revenue & Service Structure

Questions? Comments? Discussion Contact: Becky Bogard, George Sharp, Katherine Kertzman, Diane Schostak,