HomeMy WebLinkAboutPOWERPOINT PRESENTATION - CHAMBER OF COMMERCE - PROPOSALVISIT TUSTIN
The HEART of Orange County is "Totally TUSTIN!"
Presented by the Tustin Chamber of Commerce,
Tourism & Visitor's Committee
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Tustin City Council Presentation
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Tustin City Council Presentation
Table of Contents
1) Executive Summary ............................................. 3
2) The Totally Tustin Concept from 2007, Resurrected Today............ 4
3) The Design & Structure of a Visitor Destination ..................... 7
4) Strategic Marketing & Events .................................... 11
5) Annual Budget and Funding .................................... 13
6) Monitoring Success/ The City's Return on Its Investment ............. 17
7) A United, Refreshed & Revitalized Tustin .......................... 19
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1. Executive Summary
The Tustin Chamber of Commerce ("TCC" or the "Tustin Chamber") proposes to organize and
form a visitors' bureau for the City of Tustin. The visitors' bureau would be named "Visit Tustin" and
will be modeled after many other successful modern day destination marketing organizations (DMO). 1
Visit Tustin will develop and implement a comprehensive and measurable marketing plan that
will create brand awareness for all that Tustin has to offer. Visit Tustin promotional efforts will include
a Welcome Center, a kiosk to host event ticket sales, an online web site, event PR, swag (Tote Bags,
bumper stickers, t -shirts, etc.) and a comprehensive visitor's guide. The results of this marketing effort
will include
• solid economic growth (additional TOT and sales taxes, new jobs and more revenues to our
local retailers), and
• an improved quality of life for our residents (more and better events, new retail programs,
and publicity and recognition for Tustin being the "4t" Best city in California to raise a family"
which creates value in our real estate property).
We at the Tustin Chamber, among many other residents and business owners in our great city,
recognize that Tustin is a "diamond in the rough," and Visit Tustin will be the springboard organization
to tap that true marketing potential. Our wonderful city has such incredible potential with our
incredible landmark and key locations such as The Hangar, Old Town Tustin, The District, The
MarketPlace, our new Marriott hotels, Tustin Ranch Golf Course, and many others. Our food and dining
is top notch with the likes of The Winery, JT Schmidts, Nieuport 17 and the Black Marlin and several new
restaurants continue to come on the scene (such as Bronx Sandwich Shop). Our attractions have much
to offer visitors and include the Tustin Ranch Golf Course, the Marconi Museum, Wilcox Manor and the
future Veterans Park. As the Heart of OC, Tustin is centrally -located where other neighboring
destinations like Disneyland, the beach and all of OC is easily accessible.
1 A destination marketing organization or convention and visitor bureau promotes a town, city, region, or country
in order to increase the number of visitors. It promotes the development and marketing of a destination, focusing
on convention sales, tourism marketing, and services. Such organizations promote economic development of a
destination by increasing visits from tourists and business travelers, which generates overnight lodging for a
destination, visits to restaurants, and shopping revenues. Convention and visitor bureaus are the most important
tourism marketing organizations in their respective tourist destinations, as they are directly responsible for
marketing the destination brand through travel and tourism "product awareness" to visitors. Destination
marketing organizations are often called travel, convention, visitors, or tourism bureaus, welcome centers,
information centers and more.
3
With this proposal, TCC is requesting the Council's consideration for a financial allocation from
the City to fund our efforts. We propose the formation of Visit Tustin as a 501(c)(6) not-for-profit
institution that would be operated by TCC and its management team and Board of Directors pursuant to
a management agreement. TCC will exercise prudent and responsible management and decision
making as it has over the last several years in rebuilding our own organization into a stable and healthy
organization.
Our research indicates that a well-run DMO can be a financial boon to its stakeholders. We have
seen testimonials from other organizations claiming tremendous ROIs as high as $47 generated for every
$1 invested. Can we ignore this opportunity? We think not. Tustin is long overdue for an organization
that can help everyone know and appreciate that "Good things are happening in Tustin!"
2. The Totally Tustin Concept from 2007 - Revamped & Underway in 2015
History and Trends
Why market Tustin? In 2013, 45 million tourists visited Orange Count --3.7 million of them from
a foreign country. With even more arriving in 2014, Jay Burress, President of the Anaheim Orange
County Visitor and Convention Bureau, reported that the "Tourism Product" of Orange County
generates $1 million in visitor spending per hour, every day of the year! That's $9.6 billion per year.2
Hotel construction, both locally and globally, is on the rise and as economies grow, the number of
people traveling continues to increase. Today's tourism destination industry is competitive. Cities are
relying more on marketing efforts designed to promote their destination to compete with traditional
tourist locations. Last May, according to The Anaheim Orange County Visitor and Convention Bureau, as
a direct result of destination marketing, Orange County experienced the largest single group movement
from China to the United States, the "Perfect China" group. This single group generated an estimated
$85 million in local spending. As international and domestic visitation to Orange County swells, Tustin's
hoteliers, retailers, restaurants and attractions want to be positioned to better attract business by
promoting our City as an attractive overnight destination with a wealth of attractions and amenities.
According to Visit California, our State's Destination Marketing Organization, for every
advertising dollar spent in 2012, $38 was generated in tourist spending. 3
z Jay Burress, President of the Anaheim Orange County Visitor and Convention Bureau 2013
s Visit California Industry website research
4
The vision of marketing Tustin as an overnight destination is not a new one. The Tustin Chamber
of Commerce ("TCC" or the "Tustin Chamber") discussed this topic in a planning conference eight years
ago. A committee composed of retailers, property owners, Tustin Chamber members, City Council and
consultants came up with the "Totally Tustin" plan. Unfortunately, the timing for the plan was not right
-- funding was a challenge, and the recession soon followed.
In 2015, the City is better equipped to implement a successful destination marketing initiative
with premium, high occupancy hotels in place, and a stronger economy. Aggressive marketing and
promotion of our destination makes sense and is overdue, as Tustin has not captured its fair share of
visitor spending in Orange County. According to the Anaheim Orange County Visitor and Convention
Bureau report, visitors spent in the following areas in 2013:
• $2.3 billion on lodging
• $2.3 billion on meals and beverages
• $2.2 billion on amusement and entertainment
$1.8 billion was generated in general retail shopping
Tourism supports over 157,000 jobs in Orange County. If travelers infused Tustin with their
spending, Tustin would capture more visitor -generated sales -tax revenue and transient occupancy tax
and create sorely -needed jobs for returning veterans, college graduates and those in need while they
pursue higher -education. The Bureau of Labor Statistics recently found that the leisure and hospitality
industry has led the way in California's recent economic recovery, creating more new jobs than any
other industry. The hospitality industry is largely comprised of hands-on service fields that need people,
as opposed to machines and technology, to thrive. The many businesses and services that make up the
multi -faceted hospitality and tourism industries provide a wide array of jobs at all levels of education
and skills, offering everything from much-needed flexible part-time or seasonal employment to long-
term, rewarding, professional careers.
The trend in California and across the U.S. is increased tourism, as evidenced by the presence
of over 1000 destination marketing organizations, chambers, tourism improvement districts, agencies,
associations and formal destination marketing groups within the State of California alone (48 of which
exist here in Orange County). There are 34 incorporated cities in Orange County and those destinations
that have made a deliberate investment in travel promotion have ignited a vigorous cycle of increased
traveler visits and spending, combined with faster job creation and higher tax revenues that far surpass
the initial investment.
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The recent trend in increased tourism marketing began in California in 1989, when the first
Tourism Improvement District ("TID") was formed in West Hollywood. The return on investment was so
high that other cities soon followed and as a result, tourism growth soared from 2001 to 2009. Tourism
was the industry that exhibited the most resilience during the recession. After the recession, the
formation of tourism -related improvement districts continued to skyrocket. By 2014, there were 85
TID's in California, in addition to a multitude of conference and visitor bureaus, chambers of commerce
and convention centers' sales forces promoting their destinations. Destination marketing is sweeping
the nation. Hotel improvement districts, convention improvement districts and other similar entities
are being formed as divisions of Chambers or Economic Development Councils, in numerous regions,
counties and cities, with positive economic impact.
Visit Tustin Introduced
Tourism and its feeder industries (including suppliers and services) make up the foundation of
our local marketplace and are vital to a thriving Orange County. Therefore, we propose that a visitors'
bureau (named "Visit Tustin" including events such as a food and wine extravaganza branded as "Totally
Tustin") be formed and managed by the Tustin Chamber and that it be subsidized by the City of Tustin.
Financial support for Visit Tustin will have a multiplier impact on our City's economy as it has in
neighboring areas in employment base, additional sales taxes and much more. Visit Tustin's proposed
format would emulate the thousands of thriving destination marketing organizations' ("DMO") models
that are operated successfully around the world. This model features shared operating expenses and
will capitalize on the many synergies that can be garnered by two organizations with parallel goals and
interests. This is best accomplished through a management agreement between Tustin Chamber of
Commerce and Visit Tustin. (See Section 2).
This proposal explains the goals of Visit Tustin and the benefits of Visit Tustin for partners and
stakeholders, including the utilization of a focused and distinctive destination marketing format that
incorporates a sustainable marketing plan carried out by a professional team. By working hand-in-hand
with the existing TCC Board of Directors and in-house staff, Visit Tustin will draw on nearly a decade of
research and planning into launching and finally realizing the important objective of reaching today's
traveler, who often plans online how to discover all that is Tustin. Visit Tustin will boost Tustin's
economic growth and quality of life, and will generate important statistics that facilitate economic
development. Visit Tustin will work with the City to serve as a custodian of ambassador for tourism and
events. Businesses will gain new customers; conserve their own advertising budgets; reinvest in new
employees; extend their hours and increase their earnings. Residents will also appreciate the lifestyle
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enhancements that follow from being a premier destination. Currently, as the City enjoys increased
development, Visit Tustin will not just develop campaigns and programs to promote the City, it will also
develop tools that measure their success, and report on visitor experiences.
3. The Design & Structure of a Visitor Destination
In the 2013 Destination Management Organizational & Financial Profile Study conducted by
D.M.A.I. (Destination Management Association International), many destination marketing organizations
indicated "Chamber of Commerce" as their origin or current structure. According to a white paper from
the A.C.C.E. (American Chamber of Commerce Executives) in cooperation with the Western Association
of Chamber Executives, a large number of Chambers that participated in ACCE's 2012-13 Operations
Survey, did include a convention and visitors bureau (CVB) or significant destination marketing effort.
Visit Tustin should be operated as a separate 501(c)(6) corporation. A management agreement
between the Tustin Chamber and Visit Tustin will outline the responsibilities and scope of work for Visit
Tustin. Operating Visit Tustin under the direction and leadership of the Tustin Chamber is consistent
with that of the majority of many other cities. This management collaboration will enable the two
organizations to work in close collaboration with the City and enjoy many synergies, such as campaigns
to engage visitor and resident spending, retail spending, as well as collaborative efforts on events,
positive public relations and more. By coordinating the Visit Tustin organization's foundation with the
prior groundwork developed by Chamber of Commerce's Tourism Committee, Visit Tustin's operations
should work closely with those of the Tustin Chamber.
a. A Visit Tustin Executive
The Tustin Chamber is currently in the process of engaging a full-time Executive Director, who
would continue to carry out the Tustin Chamber's Board -led plan of expansion. The Executive Director
will have experience in the sales, membership and tourism (preferably) areas.
Tustin's Chamber of Commerce will put together a special committee to conduct a talent search
for a qualified Executive Director with a minimum of five years of experience; skill sets in marketing and
tourism fields; and professional experience in destination marketing.
b. Visit Tustin Management and Operations.
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Visit Tustin will be managed by the Tustin Chamber Board of Directors, Visit Tustin's Executive
Director, and the Tustin Chamber's management team.
The Tustin Chamber Board will establish a committee to advise Visit Tustin that will be comprised of
individuals from all sectors of Tustin's visitor services industry: hotel, restaurant and retail center
marketing managers; local entertainment and arts leaders; historians and museum curators; Tustin
Ranch Golf management; Tustin Police representatives and transportation company representatives.
c. Visit Tustin Space, Staff and Website
The Tustin Chamber Board of Directors, its Executive Director and other Tustin Chamber staff
would provide space and assistance to Visit Tustin and its day-to-day operations under a management
agreement.
Visit Tustin will lease a portion of the Tustin Chamber's present office space that the Tustin
Chamber will make available to Visit Tustin under a management agreement. Visit Tustin's space will
also include an ADA compliant Welcome Center so that all visitors can have access to information about
Tustin's terrific destinations. Eventually, visitor kiosks will be placed in high traffic areas frequented by
tourists.
Visit Tustin will also create a web site would as an online resource, with information about all of
Tustin's events and activities for both residents and visitors alike. Www.visittustin.org would have links
to and from www.tustinchamber.org and the City's web site (www.tustinca.org). Visit Tustin events and
a Visitor's Guide advertising and web advertising will generate additional income in future years.
d. Visit Tustin Interns and Volunteers
Visit Tustin would also supplement its personnel with students from Orange County colleges and
universities that offer tourism internship opportunities. The student interns would handle routine
administrative tasks and be assigned tasks and projects such as writing social media content and
updates; translating promotional materials; answering office phones; performing concierge duties;
logging visitor calls and tracking and responding to inquiries, etc. Resources with established contacts
are in place at the Santiago and Orange County Community Colleges, as well as CSU -Long Beach and
CSU -Fullerton.
F.,
Visit Tustin would also collaborate with Tustin's Senior Center so that experienced members of
our community can assist in Visit Tustin's operations on a volunteer basis as docents at Visitor
Information kiosks and places of interest.
e. Visit Tustin Ongoing Communication With The City
Visit Tustin will maintain active communication and coordination with the City's Economic
Development Department and embrace input from Civic Leaders. The Business and Economic
Development Committee Chair of the Tustin Chamber's Economic Committee will continue to hold its
monthly meetings at the Chamber office and Visit Tustin will keep the Committee current on all
operations, programs and campaigns. A representative of Visit Tustin will also attend meetings with
the City's Economic Development Council Committee as Visit Tustin the City's Economic Development
Director and/or Tustin Chamber advisors may advise or direct Visit Tustin to do so.
Visit Tustin will present reports at the Tustin Chamber Board meetings each month, ensuring
that the Chamber focuses continuous attention on our signature events and other visitor promotions.
Tracking the progress of our programs, monitoring publicity initiatives and evaluating results against
pre -determined metrics to measure success for every major event and/or expenditure will be a priority
(see Sections 4 and 5).
Visit Tustin will also produce an annual report explaining its advertising and marketing programs
and other initiatives throughout the year, as well as providing metrics regarding general visitor and
spending economic indicators. As discussed in more detail in Section 5, Visit Tustin will track progress in
social media, response to community promotions, print and digital advertising "calls to action," to name
a few. When ad campaigns are tracked for effectiveness, the marketing team will further identify
relevant content that interests our potential guests.
4. Strategic Marketing & Events
Visit California and The Anaheim/Orange County Visitor Association have independently
conducted surveys that continually indicate that travelers who choose destinations like Orange County
are looking for the following key elements:
• Outdoor Adventure — hiking, Main Street strolls, runs, park events
• Culinary Experiences — dining, farm -to -fork culinary, wine tasting
• Urban Excitement—shopping, entertainment, music, art, theatre
• Culture and History— museums, architecture, educational experiences
E
Tustin's central location in Orange County and its year round favorable climate uniquely position
it to continue to use of the City's motto the "Heart of the OC" to demonstrate and emphasize that Tustin
is only minutes from some of the State's best theme parks and beaches
Visit Tustin will develop and utilize a sophisticated marketing and public relations campaign to
promote Tustin in a fashion consistent with integrating the above visitor experience categories with
Tustin's marketing message. By utilizing the latest tourism marketing tools and techniques customized
to target the overnight visitor demographic, we can feature Tustin's assets and promote in a variety of
low-cost ways (digital and traditional).
The following table highlights many (but not all) of Tustin's exciting events representing an
opportunity for Visit Tustin to serve as their concierge. The City can take advantage of the following
revenue -generating opportunities:
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Tustin Events Promote Visitor Attendance
Event
Culinary Food/Wine
Visitor
Date Friendly? Revenue Generation Opportunity
Total ly Tusti n Food & Wine Extravaganza
Nov
Yes
Local resturants promote their food. 500+ potential new customer!
Lobsterfest
May
Yes
Park gathering of 500 guests
D'Vine Wine Affair
Sept
Yes
Local re stau rants p romote the i r food. 200+ pote nti al ne w cu stom e
Chili Cook Off
June
Yes
Local restaurants and bars atteact new customers. 3-5k guests
Holiday
Valentine's Day Luncheon
Feb
Yes
Seniorcommunity
Easter Egg Hunt and Pancake Breakfast
Mar
Yes
Open to the Community
Mother's Day Luncheon
May
Yes
Seniorcommunity
Independence Day Celebration
4 -Jul
Yes
Open to the Community
Halloween Howl
Oct
Yes
Child friendly
Mayor's Thanksgiving Breakfast
Nov
Yes
Attended by many in OC
Veteran's Day Luncheon
Nov
Yes
Seniorcommunity
Menorah Lighting
Dec
Yes
Visitorscome from other communities to celebrate Hannukah
Christmas Tree Lighting
Dec
Yes
Visitors come from other communities to visit ourquaint Old Town
Traveling Santa Cop
Dec
Yes
Enjoyed bychildren and parents throughout the community
EnderleCenter HolidayTreeLighting
Dec
Yes
Visitorscome from other communities to visitvEnderle Center.
Civic, Charitable, Award
State of the City Address
June
None
Mayor's Inaugural Dinner
Feb
yes
Attended by many in OC
Miss Tustin Selection
Apr
yes
Attended by many community and Ms CA supporters
Miss Tustin Fashion Show
Sep
yes
Attended by the communiity
Mayor's Thanksgiving Breakfast
Nov
no
None
Wally Karp Memorial Celebration
Jan
no
None
SuperHero Volunteer Luncheon
Mar
No
Chamber Breakfast
Monthly
Yes
Man/Woman of the Year Announcement Dinner
May
Yes
Potential new visitors in support ofthe honorees; 200guests.
Annual Tustin Chamber Gala
June
No
State of the Schools Breakfast
Sep
9/11 Remembrance
Sep
Chamber Ribbon Cuttings for New Businesses
Ongoing
Yes
High: New business introduced
Chamber Mixers for Business Socials
Ongoing
Some
High: Business opportunity to show wares
City/Chamber Business workshops
Ongoing
Little
Outdoor, Family, Competition
Dino Dash 2,5,10K Run
Nov
Yes
Leprechaun Leap 5K Run
March
Yes
3k consumers attend and shop at Tustin District
Old Town Art Walk
October
Yes
News Visitors and vendors to Old Town; est. 500 guests.
Concerts in the Park
Summer
Yes
new and returning Visitors to old town Tustin
Concerts Underthe Star -TRGC
Summer
Yes
Teen Movie Night
Summer
Yes
Movies in the Park for Children
June -Aug
Yes
Enderle Center Summer Concerts
June -Aug
Yes
Exposure to new/returning customerto the shops & resturants.
Tiller Days & Parade
Oct
Yes
Chamber Golf Tournament and Dinner
Sep
Some
Broadway in the Park
August
Yes
Estimated of 8, 000 attendees
Old Town Promenade
May
Yes
Over 1k guests attend to appreciate the uniqueness of Old Town.
Tustin School Foundation Golf Tournament & Dim
Apr
Yes
Tustin Host Lion's Club Tournament & Dinner
Apr
Yes
Tustin Police Department
Cham be r Breakfast (Pol ice Officer of the Month) Monthly Yes
Coffee With A Cop ongoing Yes
Tustin Police Department Awards Banquet ongoing No
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The creation of Visit Tustin will announce Tustin's arrival as a tourist destination, and enhance
civic pride.
One of the primary goals of Visit Tustin, similar to many other Orange County destination
marketing organizations, would be to capture overnight guests by connecting with meeting planners and
tour operators that attract youth sports, academic groups and other group -based travel. Additional no -
cost ways that Visit Tustin can solidify its place in the tourism community will be to:
• Invite travel writers to experience Tustin's attributes
• Create video and photo libraries
• Archive visitor testimonials for media access
• Work with The OC Film Commission
Visit Tustin will participate in several existing collaborative marketing organizations already in
place at the county, state and national levels. Such organizations include the Anaheim OC Visitor and
Convention Bureau, Visit California and Brand USA. These strategic partners will provide accessible
industry relations and serve as an alliance for our businesses to participants in and allow for friendly
networking and business collaboration with neighboring bureaus (e.g., room overflow referrals,
venue/convention space, dining alternatives, etc.).
Visit Tustin's Executive Director will actively participate in appropriate travel, tourism and
hospitality associations, organization boards and governmental and industry conferences; and attend
key webinars.
Consistent with a destination marketing organization's key principles, Visit Tustin will also
create a unique and distinct brand and image of our City with inspiration drawn from our City's motto:
"Building our future, honoring our past." By persuading residents to shop, play and stay at home in the
City, while welcoming visitors; civic pride is reinforced by reminding locals that we live in a place that
others want to visit. By being reminded of Tustin's benefits, residents and local business owners will
further embrace the concept of sharing our unique and desirable destination with the visitors of the
world. An engaged community of businesses and residents will strengthen the campaign's success as
they add new employment and additional tax dollars to our City. Additional marketing of our upcoming
events coupled with overnight hotel packages will showcase places like Old Town, the Hangars and fine
dining.
Visit Tustin will sponsor the production and distribution of a comprehensive guide (online and in
print) featuring retail, culinary, professional business services and events. Advertising that reflects our
favorable assets and creates a distinct image toward visitors, newly packaged visitor offers will be put
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together to draw visitors to our City and effective promotional campaigns will greatly support a variety
of business objectives for Tustin.
Visit Tustin will coordinate its promotional collateral with a consistent promotional effort that
creates a distinct image and brand for Tustin as a unique visitor destination. Advertising and marketing,
including digital and print press kits, brochures, visitor guides, dining guides and maps will also enhance
the revenue of hotels, restaurants and retailers.
Visit Tustin will also design merchandise with the "Totally Tustin" logo, such as shopping totes,
shirts, hats and license plate frames, as well as other promotional items for use at trade shows and
community events for visitors, partners, travel suppliers, civic leaders, meeting planners and hotel
groups. Visit Tustin can sell such promotional items on its website set up with e-commerce and
eventually at visitor kiosk locations. This promotes the "Tustin brand" and raises funds for marketing
while creating greater community pride.
Visit Tustin will partner with the Certified Tourism Ambassador Program' to provide our local
businesses with this accreditation and other training that will benefit not only existing professionals but
also volunteers, seniors and veteran job seekers.
By highlighting Tustin's vitality, diversity, technology, quality of life, prosperity, historic roots,
our founder's principles and current revitalization that ties in with innovation throughout Orange
County's decades, Visit Tustin's efforts will impress the industry while increasing civic pride. Being
voted #4 as the "Best City in California for Raising Kids"' is a fabulous start! We are building our city's
future while honoring our past.
5. Annual Budget and Funding
The proposed budget for Visit Tustin for fiscal year 2016 (July 1, 2015 through June 30, 2016)
can be found below.
' The Certified Tourism Ambassador program in Orange County is the largest in the United States
5 ApartmentList.com
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Visit Tustin Proposed Budget - First Year Operations
Management Fee (1)
Allocation of Overhead Expenses
Rent
Utilities
Office Supplies/Printing/Graphics
Tech Equip Repair & Support
Equipment Rental
Postage & Shipping
Marketing:
Advertising & Promotion
Logo gifts/shirts/hats
Membership Plaques/Certs/Awards
Legal & Other
Insurance
Subscriptions
Licenses & Permits
Auditing & Professional Fees
Merchant Account Fees
Footnotes:
$11,500
$6,800
$5,100
$2,900
$400
$1,000
$32,900
$19,000
$5,000
$1,200
$9,500
$300
$2,200
$1,400
$50,000
$27,700
$56,900
$14,600
Total Budget $149,200
(1) Services include the following executive oversight, sales, general and administrative services from TCC Staff
4 FTEs Rate Cost
- Executive Director 0.5 $80,000 $40,000
- Office Manager 0.25 $40,000 $10,000
$50,000
The assumptions for the proposed budget are as follows:
• Visit Tustin will be managed by the Tustin Chamber of Commerce (TCC). The entity will be a
separate not-for-profit 501(c)(6) entity. A management agreement between Visit Tustin and
the Tustin Chamber would be put in place to establish the operating and financial
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obligations of each respective organization. The following key assumptions regarding Visit
Tustin's operations are:
o Visit Tustin would be the direct recipient of any City funds or subsidies.
o The Tustin Chamber Board of Directors and management would oversee and advise
on the operations of Visit Tustin;
o The Tustin Chamber would provide space, staff and services to Visit Tustin under a
management agreement.
o The Tustin Chamber would charge Visit Tustin a management fee, along with charge
back of proportionate expenses associated with the operation and maintenance of
Visit Tustin facilities. Such fees and expenses would only be charged at cost.
o Visit Tustin would maintain separate bank accounts and accounting records, with
such records being available from time to time to City officials for inspection or
review upon request.
• The services that Tustin Chamber would provide Visit Tustin include use of an Executive
Director under a management agreement with the Tustin Chamber. The Tustin Chamber
will provide these executive services only on an as -needed basis.
• All paid Visit Tustin staff will be employees of the Tustin Chamber, whose services will also
be provided under a management agreement, and only on an as -needed basis.
• Additional Visit Tustin staff (including interns and volunteers) would be provided as needed
basis, and only as may be financially feasible.
• Visit Tustin would share office space with the Tustin Chamber. The Tustin Chamber would
provide space to Visit Tustin under a management agreement. However, Visit Tustin will
also maintain a separate Welcome Center compliant with all applicable regulations and laws
including those of the American Disabilities Act (ADA) (e.g., wheelchair access). The
Welcome Center would include all printed materials and online access for visitors, business
owners and residents to utilize and search.
• The proposed budget assumes the following financial allocations and apportionments:
o A management fee that is commensurate with the actual costs for the services of an
Executive Director (.5 FTE) and an Office Manager (.25 FTE).
o An allocation of overhead expenses for rent, utilities and equipment.
o Marketing, legal and other expenses that are estimated to be directly -related to the
operations of Visit Tustin.
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In most cases, the cost estimates for Visit Tustin are based on the Tustin Chamber's costs, which are
much less than those a newly found organization might incur. For example, the Tustin Chamber's rent
expense is expected to increase by only 20 percent as a result of providing space to Visit Tustin (based
on its present office space [1,700 square feet].) The 20 percent increase to accommodate the space
needs of Visit Tustin is minimal, considering that Visit Tustin would otherwise have to rent an entire
separate space at a greatly increased cost. Cost savings to Visit Tustin as a result of operating in
coordination with an existing organization such as the Tustin Chamber would also provide the
opportunity to save on otherwise considerably more expensive staff, production and marketing
expenditures
The Tustin Chamber would also be a good financial advisor for Visit Tustin. Over the last several
years, the Tustin Chamber has demonstrated a commitment to financial stability and success as
demonstrated by the following notable accomplishments:
• Total revenues increased by 82 percent since 2011
• Number of members increased by nearly [50] percent since 2011
• Paid off all debt obligations
• Renegotiated office lease to include several favorable and financially efficient terms
• Established substantial cash reserves that ensure TCC's ability to meet its continuing
obligations for the foreseeable future, even in the event of limited economic downturn
The table below is a comparison of the visitor bureau budgets and their relative proportion of
local tax revenues for several neighboring Tustin citites. These spending levels are notably more
conservative than what is being proposed herein.
Comparable CA City Spending on Visitors' Bureau
Newport Beach
$3,800
$3,600
$7,400
18%
ESTIMATED
Los Angeles
$22,000
TOT CONTRI-
TOTAL
7.1%
TOT
LOCATION
TID BUDGET
BUTTON
BUDGET
% OF TOT
REVENUES
Newport Beach
$3,800
$3,600
$7,400
18%
$41,111
Los Angeles
$22,000
$14,700
$36,700
7.1%
$516,901
West Hollywood
$4,300
$3,400
$7,700
19.3%
$39,896
Pasadena
$2,857
$3,720
$6,577
60%
$10,962
Huntington Beach 1
$2,600 1
$850 1
$3,450 1
10%
$34,500
Tustin (proforma ) 1 $0 $1,050 1 $1501 14.3% $1,050
Source: Civitas Research
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6. Measuring Success/ The City's Return on Its Investment
The Tustin Chamber recognizes that the success of any organization must be measured on a
continuous basis. TCC is accustomed to monitoring its own performance on a monthly basis through a
series of financial reports reviewed by our CFO. Additionally, TCC conducts an annual review of its
financial statements by an outside CPA firm.
Visit Tustin will measure its results through a series of marketing performance metrics that can
be used to track returns and measure campaign and publicity success which include, but are not limited
to, the following:
• Tracking City revenues from the Transient Occupancy Tax (TOT)
• Measuring increases in hotel room bookings, occupancy rates and changes in RevPar
(revenue generated per available room)
• Tracking key web site (SEO) analytics (e.g., web page visits to www.visittustin.org, "click
throughs" to www.visittustin.org and local business web sites, etc.). Data will be available
for our local businesses.
• Maintaining a robust social media presence (Facebook, Instagram, Twitter, etc.) and
measuring such activity
• Utilizing an 888 telephone number to assist in data collection
• Emailing inquiries to survey our collective marketing efforts
• Analyzing credit card purchases by zip code to study sales volumes by geographic area
• Measuring sales tax revenue increases
• Tracking hotel and venue partner event bookings
• Monitoring coupon redemption and "call -to -action" print or online offers
• Reviewing results of post -visit guest surveys
As an example of a highly successful tourism campaign, Brand USA, the destination marketing
organization for the United States began actively rolling out a marketing plan to the millions of
international travelers to choose USA as their leisure and business destination. The cost of this program
is estimated at $125 million and generated the following benefits to tourism in the U.S.':
• For every $1 spent, Brand USA generated $47 for U.S. companies.
• $3.4 billion in additional international visitor spending
• $7.4 billion in business sales (Output)
6 The Return on Investment of Brand USA Marketing, 2013, Oxford Economics.
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• $3.8 billion in value added (GDP)
• $2.2 billion in personal income
• 53,181 jobs created, including 27,895 directly in industries serving visitors
• $512 million in Federal taxes
• $460 million in state & local taxes
The case for destination marketing is broad and compelling. The importance of destination
marketing is connected to the characteristics of the tourism sector, the dynamics of international travel
markets, and proven economic returns of effective marketing. In summary, destination marketing is vital
because:
• Tourism offers significant economies of scale, Visit Tustin will produce synergies in marketing.
• The tourism sector affects various industries, both large and small.
• Tustin is ideal for tourism because of its central location and proximity to Orange County's many
attractions.
• Visit Tustin's engagement with travel markets will enable Tustin to capture its share of the
market.
• Tustin must compete in global and national market opportunities for growth prospects for the
business and lodging community of Tustin.
• Destination marketing has proven to be historically effective, producing returns far in excess of
investments.
Brand USA generated a significant multiple return on its marketing costs (e.g., 47:1). Visit
Tustin's goal will be to do the same. Visit Tustin's marketing efforts expect to generate additional TOT
revenue, sales tax revenue, local business revenue, new jobs, higher real estate values, higher
commercial occupancies and an overall brand awareness that will represent an investment for Tustin for
the long term future. The intangible benefits include increased exposure and attendance to city and
non-profit events (e.g., Chili Cook -off, Tiller Days, Leprechaun Leap, etc.), greater utilization of our parks
and attractions (e.g., the Hangar, the Veteran's Sports Park, etc.) and broader exposure to our fine
shopping and dining (e.g., Old Town, The Market Place, The District, etc.).
7. A United and Revitalized Tustin
California is the number one travel destination in the United States. During the recent recession,
tourism fared much better than other industries with travel spending actually increasing by 7.5 percent
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between 2009 and 2010.' Tourism and travel's resilience can be directly attributed in large part to the
innovative use of effective tourism marketing. The destination marketing carried out by Visitor Bureaus,
Chambers, and similar are providing budget relief for local governments and will create a cycle of
activity that benefits our entire City's economy. Visit Tustin will have the ability to better advocate for
Tustin's stakeholders: the businesses, hotels and attractions. Adding to our City's tax base is just the
beginning.
The value of destination marketing and how it aids in building relationships, property values and
how well it supports businesses has been repeatedly documented. It has demonstrated that even small
towns and relatively unknown counties throughout the country are adopting formal marketing
campaigns to attract visitors thereby resulting in additional spending in their regions. The creation of
Visit Tustin heightens the synergy between TCC and the City. It enables the strengthening of the great
work already being done by unifying all facets of our community. As advocates for all businesses in
Tustin, this proposal is being requested to boost overall, city-wide success. By adding the critical
component of actively marketing our city as a preferred Orange County destination, we increase the
potential to capture our share of visitor spending. It is essential to create Visit Tustin to add the
economic benefits we have presented in this proposal.
Chambers across the nation now access marketing programs in place with both Brand USA, our
Nation's tourism marketing group (formed in 2011 as a result of Congress' Travel Promotion Act) and
the U.S. Travel Association. This ensures that when tourists are ready to plan travel, whether on
vacation or to arrange business, they'll choose the greatest and most diversified destination of them
all—the United States, as a result of cooperative marketing collaboration. The synergy is in place on a
national, state and county levels and it's growing. Our City can now be directly connected to this
established model with the creation of Visit Tustin. California is an initial entry point for most of the
international tourists and is something Tustin can leverage in promotional initiatives along with our year
round weather, nearby famous attractions, safety and desirable visitor amenities. Positive factors and
experiences suit our capabilities to establish an effective Visit Tustin and operate it in a fiscally
responsible manner, to maximize return on investment. The creation of a Visit Tustin encourages
relationships we have locally to attach to the greater hospitality industry. Visit Tustin will accomplish all
these objectives and more while creating and maintaining an environment of creativity, innovation,
equality, opportunity and teamwork.
' Visit California Industry report, by Dean Runyan & Associates
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