HomeMy WebLinkAbout05-14-2003Lodging Tax Advisory Committee
Meeting Minutes
May 14, 2003
Opening:
The meeting of the Lodging Tax Advisory Committee was called to order at 10:07 a.m.
on May 14, 2003 in the Conference Room 3 of Auburn City Hall.
Committee Members Present:
Jeanne Barber, David Kwok, Khara Litscher, Mike Morrisette, Jana Raasch
Staff: A1 Hicks
Guests: Mary Bartlett,
A. Approval of Agenda
The agenda was approved as distributed.
B. Approval of Minutes
The minutes were corrected to read the spelling of Jana Raasch name with one "n".
C. Open Issues
Newspaper Ads Mike Morrisette reported on the research done concerning the cost,
preparation and presentation ora newspaper advertisement. Mike prefaced his report by
indicating that he befieved any ad campaign would be most successfully conducted by
offering an entertainment and lodging "package" to potential out of town visitors. The
package should contain discounts for entertainment attractions, restaurant; and lodging.
It would be necessary to spend some time working with local providers of these services
to arrange the package. However, the ensuing enticement of a "package" opportunity
would be an important ingredient in persuading travelers to select Auburn as a
destination.
The research was conducted in such a way as to follow the guidefines indicated by the
Committee at its previous meeting. Mike selected two potential "test" markets, Yakima
and Wenatchee. Two day; of the week were selected. In Yakima the day; were Saturday
and Sunday. In Wenatchee the day; were Sunday and Thursday, taking advantage of the
Wenatchee newspaper's weekly travel section. Each ad was for ~ page Black and white
with 1 color.
Remaining consistent with the Committee's discussion at its' previous meeting, the timing
selected for placing the ads' was late summer and mid-autumn and around events'. Labor
Day and Feteran's Day were selected. In late summer £meraM Downs continues to ham
race events' and the area's summer activities, such as golf and swimming continue to be
enjoyable. At the same time there is an impetus for back to school shopping.
Veteran's Day is a major event in Auburn with a flyover, floats' andparade. This year
the event offers the opportunity to recognize the contribution of veterans from previous
conflicts' while recognizing the sacrifices of those who have served in the Middle East.
Considering the recent war in Iraq, this may be an auspicious time to advertise the
opportunity to join in the celebratory event.
An advertisement placed in the Yakima HeraM on Saturday and on Sunday wouM be
expected to reach approximately 200, 000 adult readers. An advertisement placed in the
Wenatchee World on Sunday and on Thursday, using the travel supplement, would be
expected to reach approximately 55, 500 adult readers. The Yakima ad could be placed
on August 16 and 17, the Wenatchee ad on August 24th and 28th.
The cost for the Yakima ad wouM be:
First Insertion: $ 2, 472
Second lnsertion: $ 2, 039
Total: $ 4, 509
The Cost for the Wenatchee ad wouM be:
First Insertion: $1,812
Second lnsertion: $ 854
Total: $ 2, 955
Total Cost of Both Ads 7, 464
For the Feteran's Day Campaign the ad wouM be placed in the Yakima HeraM on
November ]st and 2'd and in the Wenatchee Worm on November 2'~ and November 6t~.
An advertisement campaign conducted in advance of the Feteran ' s Day event wouM
result in the same costs' and the same circulation for both newspapers. The Total ad
costs for the Labor Day campaign and the Feteran's Day campaign wouM be $14,928.
The Chamber offered to manage the development, layout and placement of the ads' if the
production costs' and staff time were reimbursed. These efforts' wouM entail:
Negotiating, contracting and placing the advertisements'. Formating, proofing and
designing the ad layouts'. Soliciting a consensus for the ads' and meeting management as
well as contacting, soliciting and organizing the special traveler's package options. The
cost for this effort wouM be about $4,000.
The total cost of the ad campaign test marketing effort wouM be $18,928.
The opinion was expressed that tying the ad campaign to an event tike labor is necessary.
The question was raised as to when schools opened in those markets and how that might
influence travefing decisions.
David Kwok expressed the opinion that the timing for the Labor Day ad was right on
target but that the placement of the Veteran's Day ad shouM be moved up "a couple of
weeks" to allow people to plan for the trip.
dana suggested attempting to involve the track in joining in the ad
Mike indicated that he befieved that the ultimate goal is to develop a coordinated effort
among Auburn's entertainment, restaurant, shopping and lodging venues to attract
visitors to Auburn.
Concerning the placement of the ad, dana offered to help and suggested looking at
column inches the ad would commit to and that the cost should be on the rate card
Motion: The Lodging Tax Advisory Committee recommend to the City of Auburn that
two newspaper advertising campaigns be conducted in the markets of Yakima and
Wenatchee to attract visitors from those communities to Auburn during the for Labor
Day and Veteran's Day Holiday periods and that the City allocate up to $14, 928for that
purpose.
Moved by David Kwok and Seconded by dana Raasch
Approved by acclamation.
Motion: The Lodging Tax Advisory Committee recommend to the City of Auburn that the
Auburn Chamber of Commerce be retained to manage the development of the campaign
to include: Negotiating, contracting and placing the advertisements. Formatting,
proofing and designing the ad layouts. Soliciting a consensus for the ads and meeting
management as well as contacting, soliciting and organizing the special traveler's
package options; that the City allocate $4,000 of Lodging Tax funds for this purpose and
allocate an additional $1,000 of Lodging Tax funds to be used as a contingency to cover
unanticipated expenses for the advertisements or the cost of managing the placement and
layout of the ad
Moved by David Kwok, seconded by Khara Litscher.
Approved by acclamation.
It was further suggested that "tracking" was essential the ad include a "tear out "for use
by consumers that wouM enable the lodging industry to know the number of stays
generated as a result of the ad.
Use of a 1-800 number was discussed but it was decided that the expense involved in the
number, postage for materials and staff time to answer calls and mail materials wouM be
better incurred as revenues increased.
It was suggested that e-mail might be a potential tool to be used in place ora 1-800
number at the current time.
C. New Business
Lodging Tax Funds Staff provided the Committee with a report showing Lodging Tax
revenues by month for 2002 and the amount currently in the Lodging Tax Account. The
Committee asked for a simplified spreadsheet showing the amount of revenue,
expenditures and the account balance. The Committee also asked if it couM briefly meet
with the Finance Director to discuss revenues at its next meeting.
D. Agenda for Next Meeting
It was the consensus of those present that the Committee shouM meet again on June 5,
2003 at 10:00 am. to review the progress concerning the ads.
The next general meeting is scheduled for 10:00 a.m. on Thursday, June 5, 2003 in
Conference Room 2 at Auburn City Hall.
Adjournment:
Meeting was adjourned at 11:15 a.m.
Minutes submitted by: A1 Hicks
Approval Date: