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HomeMy WebLinkAbout2014 VLMD Operating Plan Memo FINAL To: Vail Local Marketing District From: Vail Local Marketing District Advisory Council Date: September 17, 2013 Subject: Vail Local Marketing District 2014 Operating Plan and Budget I. BACKGROUND The mission of the Vail Local Marketing District is to market and promote Vail to attract overnight destination guests primarily during the May – October time frame, creating economic vitality by increasing both the visitor base and sales tax revenues. Results to date show an increase in sales tax collected, room nights and event attendance over the summer of 2012. The marketing objectives outlined in the VLMD operating plan are: Continue the momentum and build on the powerful leadership position of the year-round Vail brand in order to:  Increase May – October occupancy  Increase sales tax revenue  Increase group occupancy  Optimize visitor mix  Increase net promoter score  Increase Vail brand awareness II. BUDGET DETAIL Revenue from lodging tax collections is estimated at $2,600,000 for 2014. The assumptions for this projection are consistent with the town’s expected sales tax revenue for 2014. Regarding expenditures, the attached budget proposal includes $2,800,000 for 2014 programs. The ending fund balance currently present of $946,570 is 36% of annual revenues, Council directive is 25% of annual revenues. The following shifts are recommended from the 201 3 forecast to the 2014 budget to address recent successes and opportunities and to achieve the outlined marketing objectives: Town of Vail Page 2  Destination budget increases 16% to provide emphasis in key markets domestically in an effort to optimize overnight guests as part of the visitor mix  International budget stays flat, recognizing successes from 2013 and building on the inroads made in the Latin American/Mexican markets  Front Range budget decreases 11% to shift emphasis to destination overnight guests  Groups and Meetings budget increases 6% to provide additional emphasis on medical meetings, corporate meetings and participatory sports tournaments as well as a new collateral piece for the meetings market trade shows  PR budget stays intact to maintain a prominent presence regionally, nationally and internationally  Research budget decreases $40,000 because Burke Brand Research study was done in 2013 and is only scheduled every other year  Photography/video increases by $25,000 (31%) to continue to build the archives with new and exciting still shots and video opportunities  Branding increases 38% ($30,000), partially due to savings in 2013 and also to evolve the look and feel for summer to be parallel to and consistent with ski season branding  Professional Fees increase 2%  Event Marketing increases by 4% for expanded scope of work for the event liaison and with a placeholder for the USA Pro Challenge The budgetary changes outlined above reflect the goal of shifting dollars to attract more overnight destination guests to Vail through additional outreach and programs in 2014. Town of Vail Page 3 III. ACTION REQUESTED OF VAIL LOCAL MARKETING DISTRICT VLMDAC recommends that VLMD approve the 2014 Operating Plan and budget of $2,800,000. ATTACHMENTS VLMD 2014 Operating Plan and Budget VLMD 2014 Strategic Plan