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HomeMy WebLinkAboutEvent Funding Model   PO  Box  1130,  Vail,  CO  81658   www.visitvailvalley.com   June 22, 2012 To: Kelli McDonald & Sybill Navas, Town of Vail CC: Beth Slifer, VLMDAC ; Jenn Bruno, CSE ; Margaret Rogers & Susie Tjossem, TOV Re: Follow up to 6/21 VLMDAC/CSE joint meeting re: creation of a strategic methodology to funding special events Based on the June 21 joint meeting, it is obvious that the Vail Local Marketing District Advisory Council and the Commission on Special Events have come a long way toward a unified approach to events. The continued communication between the groups is impo rtant and I think everyone agrees that it is moving in a positive direction. This follows the recent (3 years +) and continued positive developments with the year -round integration of the Vail brand between summer and winter as well as the VLMD collaborat ion with the Vail Mountain / Vail Resorts marketing departments. It also aligns well with the importance of events to the Vail community and Vail’s destination visitors as outlined in market research and the recent community survey. Ho wever, as noted in t he joint meeting , I believe that the CSE needs a more strategic, data - driven approach to event funding. Some examples spring to mind: 1. Vail Rocks!: at the recent event allocation meeting, CSE members were essentially “auctioning” off event funding to the p oint that the event producer stated “do I hear $12,000, will anyone give me $12,000?”. 2. At the June 21 meeting, it was suggested that the business community (restaurants) approach event producers to move the dates of their events to better fit their interes ts. 3. At the June 21 meeting, it was suggested that “political marketing” is an important factor to consider when funding events. While I don’t underestimate the various political factors and other history with various events, I do believe it’s past time th at the CSE has a more strategic, data -driven model and direction from which to work from. The following is for the purposes of example only and is based on the ACE model to further define and better market Vail and provide a successful event platform.   PO  Box  1130,  Vail,  CO  81658   www.visitvailvalley.com   Str ategic Event Funding Model (based on 2012 total budget of $834,000 ) The Town of Vail will define events into four major categories, as follows: 1. Signature Events (40%) a. Signature Events have complete brand alignment as outlined by Vail Marketing (winter) o r VLMDAC (summer), drive significant destination traffic, have outside sponsorship/partnerships and have been established as successful enterprises over time. b. Signature event examples include Teva Mountain Games, Winter Teva Mountain Games, Spri ng Back to Vail, Vail SnowDaze . 2. New Events (25%) a. New events are programs in year 1 -3 of existence (more below) b. New events would be eligible for funding for only three years, and would be funded on a sliding scale of “no less than” 1/3 cut per year after year one; thi s encourages event producers to secure local support and sponsorships in order to grow their program. Starting in year four, the event would shift to one of the other categories or no longer receive CSE funding support. c. New event examples include Season of Song, Vail Restaurant Month, Gran Fondo, Vail HoliDaze, America Cup Fly Fishing, Keen Kids Adventure Race, Living at Your Peak, Vail Automotive Classic, Tour of Vail, Vail Rocks!. Vail Soul Music Festival. 3. Ambient/Community Events (20%) a. Ambient/Community Events are events that enhance the Vail experience (for both guests and locals) and provide vibrancy and energy in town, while not necessarily having a destination driver (lodging occupancy) effect. b. Ambient/Community Events examples include Vail America Da ys, Vail Farmer’s Market, Oktoberfest, LionsHead Family Saturday Afternoon Club , and Vail Arts Festival. 4. Continued Support Events (15%) a. Continues Support Events are established events with established track records , but which are important to the destination a nd/or community due to need times, lodging fulfillment or other key factors . However, these events fall short of being signature events.   PO  Box  1130,  Vail,  CO  81658   www.visitvailvalley.com   b. These events would not need to necessarily complete the rigorous/full process as they are predetermined given historica l success and results . c. Continued Support Event examples include the Vail Lacrosse Shootout, Vail Challenge Cup, Vail 3v3 Socce r, King of the Hill volleyball, Taste of Vail, Vail Film Festival, Gourmet on Gore, RMUSSA Softball, and Whitewater Kayak Demos. Sug gested Funding: Signature Events: 40% ($330,000 ) New Events: 25% ($200,000) - new events have “tiered” funding for a three year time period and are then moved to the appropriate category and/or removed from calendar Ambient Events: 20% ($160,000) Conti nued Support: 15% ($120,000) As part of the funding cycle and funding process, the CSE would be required to “segment” each event into the appropriate event category. This ensures a strategic and well thought out approach to the right mix of events (destin ation vs. ambient vs. community vs. historical programs). Incentives could be given and a strategic approach taken to move events to specific timeframes on the calendar and/or to a specific neighborhood within the Town of Vail. This approach has a number of benefits, including: 1. A pre -defined, strategic approach to funding 2. Keeps the event calendar fresh by “weeding out” unsuccessful events (and event producers who can not find outside sponsorships) from the calendar 3. Provides opportunities for new events to in vigorate and enhance the Vail brand 4. Provides more specific direction to the CSE members 5. Creates further alignment with the Vail brand by supporting signature & ambient events 6. Creates further alignment with the Vail business community (i.e., restaurant group) 7. Ensures continued funding for historic successful programs without the time/energy of going through the entire event funding process (thus making the CSE more effective)   PO  Box  1130,  Vail,  CO  81658   www.visitvailvalley.com   Conclusion: As noted, the following is designed as an example and is based on th e ACE model of creating a strategic plan to event funding, which in turn further defines and better markets Vail and provide a successful event platform for the CSE, the Town of Vail, the Vail Local Marketing District and event producers. It is a conceptua l model than can hopefully initiate the development of a “better” approach to event funding to improve all aspects of Vail for guests and locals alike. There were numerous other issues discussed at the meeting that are worthy of discussion, including onli ne permitting and event calendars (among others). The purpose of this memo is not to address all issues, pro or con, toward event funding. Rather, it is designed to stimulate discussion on the creation of a strategic, data -driven model to event funding and to ensure that there is a standard expectation for events. It strikes me that a system that has the same process, same rules and same expectations for an event such as the Whitewater Kayak Demos (funding: $2,000) and an event such as the Teva Mountain Ga mes/IFSC World Cup Climbing (funding: $105,000) is broken. That’s not to suggest that each event isn’t important; rather, it’s to help the CSE dedicate appropriate time and resources to the events that are new and/or create “signature” events while still a llowing them to fund important events throughout the year. I am happy to answer any questions you may have on this outline and proposed methodology to event funding. It’s also important to note, as stated numerous times in public meetings and to the CSE b oard, that the Vail Valley Partnership is not advocating for any specific events. We respect the role of the CSE and the inherent difficulty in making funding decisions. It’s my hope a system like this improves the event funding process to everyone’s benef it. Thank you in advance for your consideration.