Showing value to CVB stakeholders during the MACVB education summit

1. Coon Rapids City Council
• Anoka
• Blaine
• Coon Rapids
• Fridley
• Ham Lake
• Lino Lakes
• Mounds View
• New Brighton
• ShoreviewTuesday, May 16, 2017

2. MINNESOTA STATE STATUTE
M.S. 469.190 Local Lodging Tax
“Ninety-five percent of the gross proceeds
from any tax imposed under subdivision 1
shall be used by the statutory or home rule
charter city or town to fund a local
convention or tourism bureau for the
purpose of marketing and promoting the city
or town as a tourist or convention center.”
Twin Cities Gateway is a non-profit organization,
governed by an 18-member Board of Directors

3. TOURISM IN MINNESOTA
• $14.4 billion in gross sales
• Almost $40 million per day
• 254,000 full & part-time jobs
• 11% of private sector employment
• $5.1 billion in salaries and wages
• $930 million in sales tax revenues
• 17% of all MN sales taxes
Anoka County = $555 million / 12,612 jobs
Ramsey County = $2.04 billion / 28,026 jobs
Bunker Beach
$9.8 billion = 68% of all MN tourism revenues are in the metro region

4. So, what happens when more visitors come to town?
Magic
Happens!

5. NO ONE RELOCATES, TAKES A NEW
JOB, BUYS A HOME, OR STARTS A
BUSINESS IN A COMMUNITY WITHOUT
VISITING IT FIRST…
 Tourism attracts new residents
 Tourism attracts a strong workforce
 Tourism attracts new businesses
 Tourism attracts new development
Tourism is economic development’s “first date”
Source: Longwoods International Research 2016

6. What Happens When More Visitors Come to Town?
The perception of the community is enhanced

7. What Happens When More Visitors Come to Town?
The community attracts a strong workforce

8. What Happens When More Visitors Come to Town?
New Businesses are Attracted

9. TCG WEBSITE ANALYTICS
• User sessions 202,941 132,368 +65%
• Page views 361,328 313,190 +14%
• Organic search 47,824 44,813 + 8%
• Social media / FB 49,536 15,467 +68%
• eNews “opt-ins” 9,126 3,230 +65%
2016 vs 2015
4th of July Celebration

10. 2010 2011 2012 2013 2014 2015 2016
591,156
673,559
719,716
780,759
869,335
914,069 938,456
0
200000
400000
600000
800000
1000000
1 2 3 4 5 6 7
Twin Cities Gateway Lodging Tax Receipts
Same # of TCG hotel rooms available 2010 - 2016

11. 46%
56%
57%
65%
68%
79% 77%
78%
69% 66%
54%
49%
48%
54% 55%
58%
65%
74% 76% 76% 73% 71%
56%
50%
46%
55%
57% 65%
65%
75%
71%
78% 76%
65%
50% 46%
0.0%
20.0%
40.0%
60.0%
80.0%
2014 2015 2016
TCG 2016 HOTEL OCCUPANCY
2016 annual occupancy 62.4% =
TCG is well-positioned for new
hotel development

12. $81 $84 $84 $86 $89
$95 $96 $93 $91 $88 $85 $83
$84 $87 $86
$91 $93
$101 $102 $100 $98 $95
$87 $86
$90 $91 $91 $94 $95
$103 $104 $101 $103 $100
$91 $91
$-
$50
$100
2014 2015 2016
TCG 2016 ADR / Average Daily Rate
2017 ADR = $96.17
Average daily rate was up in 12 out of 12 mos

13. 21% 24% 17% 16% 16% 6%
Lodging Food / Bev Retail Recreation Transport Other
Lodging F & B Retail Recreation Transport Other
What Happens When More Visitors Come to Town?
79% of visitor spending is on “Main Street” & 21% is on
lodging. Without tourism, many of your favorite businesses
and establishments may no longer exist.
Tourism =
Jobs +
Tax Base =
Community
Vitality

14. LOOKING AHEAD
Headwinds & Tailwinds
• 22.2% more hotel rooms are available
in the metro area than in 2016.
• Visitation to metro area continues to
increase
Bunker Park Stable

15. WHO ARE OUR VISITORS?
• Average HHI $79,740
• Average party 1.9 people
• 72% are married
• Average age 47 years old
• 71% leisure / 29% business
• Length of stay is 2.3 nights
• 50% of visitors = “day-trippers”
• “
Bunker Hills
Event Center

16. 75% of metro area
visitors are from
MN, ND, SD, IA,WI,
47% are from MN
IL & Manitoba are
other key markets
WHO ARE OUR VISITORS?
80% of metro visitors arrive via personal vehicle
and travel an average of 311 miles one-way

17. 2017 STRATEGIC LANDSCAPE
• Competition for the travel dollar is fierce
• More destinations see value of visitors
• Metro area has 20+ CVBs
• All competing for the same visitors

18. TCG STRATEGIC OBJECTIVES:
• Focus on leisure / sports / meetings
• Reach identified target markets
• Increase non-peak period business
• Enhance overnight stays
• Leverage resources via partnerships
• Maximize prospect engagement
Bunker Hills

19. HOW DO WE REACH OUR BEST PROSPECTS?
TCG 2017 Budget $1,228,500 **
• 18% is administrative / overhead
• 46% leisure marketing
• 14% grant program awards
• 14% sports marketing programs
• 8% meetings & events promotion
MRT Bikeway
Coon Rapids Dam
** Budget includes added-value generated by
partnerships &
co-op marketing programs

20. TCG COON RAPIDS MARKETING INITIATIVES
• USSA Early Bird Softball Tourney
• MYSA State (District) Soccer Tourney
• USSA Midwest Super Dual Softball Tourney
• MSF Men’s Fastpitch Softball Tourney
• MRPA State Church Softball Tourney
• NCAA JUCO / MEA Volleyball
• Turkey Shoot Outdoor Broomball
• Girls H.S. Holiday Hockey Tournament
• Bunker Hills Video Production
• Bunker Beach Video Production
• Bunker Hills Event Center Advertising
• CR Civic Center Advertising

21. • Anoka
• Blaine
• Coon Rapids
• Fridley
• Ham Lake
• Lino Lakes
• Mounds View
• New Brighton
• ShoreviewQ & A