DEVELOPMENT OF A STRATEGIC BUSINESS PLAN FOR THE … · 2018-12-18 · September 24, 2012 . Mr. Eugene Zakreski . Executive Director . The Stratford Tourism Alliance . 47 Downie Street

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Prepared for:

Mr. Eugene Zakreski The Stratford Tourism Alliance

September 2012

The contents are proprietary and subject to the terms of a

Non-Disclosure Agreement

September 24, 2012

Mr. Eugene Zakreski Executive Director The Stratford Tourism Alliance 47 Downie Street Stratford, ON N5A 1W7

Via Email: [email protected]

RE: DEVELOPMENT OF A STRATEGIC BUSINESS PLAN FOR THE STRATFORD TOURISM ALLIANCE – FINAL REPORT

Dear Eugene:

In accordance with the terms of our engagement, PKF Consulting Inc. (PKF) has completed the research, analysis and member consultation relating to the development of a sustainable revenue-generating strategy for the Stratford Tourism Alliance (STA).

In order to maintain the current level of services provided by the Stratford Tourism Alliance, management and membership must look to various forms of Revenue Enhancement in order to replace the Provincial transitional funds of $300,000 per annum, which will conclude as of December 31, 2012.

With the re-introduction of a 3% DMF, approximately a 15% increase in public sector funding and a renewed membership plan designed to be more equitable amongst all of its sectors in 2013, STA will be in a position to replace the former revenues received through the provincial DMF transitional funding, in order to maintain a $1.3 Million operating budget.

In order to grow the organization, STA should consider charging its members for lead referrals generated through its website, which will provide STA with an additional $16,000 in revenue which can be re-invested in marketing efforts for the destination.

The ability to further grow STA’s operating budget to reach $1.6 Million will largely be contingent on partnering with Stratford Festival in order to implement a surcharge on Stratford Ticket sales.

We wish you every success in making Stratford one of Canada’s pre-eminent tourism year round tourism destinations through an adequately funded sustainable Strategic Business Plan.

Yours truly,

PKF CONSULTING INC.

Development of a Strategic Business Plan for the Stratford Tourism AllianceFinal Report PKF Consulting Inc. September 2012

mailto:[email protected]


TABLE OF CONTENTS

1.0 INTRODUCTION AND SCOPE OF STUDY.................................................................................... 1

2.0 CURRENT SITUATION ASSESSMENT ......................................................................................... 3

2.1 Introduction .............................................................................................................................................3 2.2 STA Roles & Responsibilities.................................................................................................................3 2.3 Organizational Structure.........................................................................................................................3 2.4 STA Programs and Experiences............................................................................................................4 2.5 STA Membership 2008-2012 .................................................................................................................5 2.6 STA Membership Fee Structure ............................................................................................................6 2.7 Stratford Partners in Accommodation – Destination Marketing Fund ..................................................9 2.8 Historic Operating Results (2010-2012) ..............................................................................................10 2.9 Summary...............................................................................................................................................12

3.0 REGIONAL TOURISM OVERVIEW .............................................................................................. 14

3.1 Introduction ...........................................................................................................................................14 3.2 Regional Visitor Volumes and Spending .............................................................................................14 3.3 City of Stratford – Demographic Overview ..........................................................................................17 3.4 City of Stratford – Accommodation Market Overview .........................................................................18 3.5 Conclusions & Implications ..................................................................................................................20

4.0 COMPARABLE DESTINATION MARKETING ORGANIZATION ANALYSIS............................. 21

4.1 Introduction ...........................................................................................................................................21 4.2 Funding Destination Marketing ............................................................................................................21 4.3 Comparable North American DMO’s with $1-$2 Million Operating Budgets......................................21 4.4 Comparable Destination DMOs ...........................................................................................................25 4.5 Comparable Ontario DMOs..................................................................................................................30 4.6 Implications for Potential Revenue-Generating Strategies .................................................................31

5.0 STA MEMBER SURVEY RESULTS ............................................................................................. 32

5.1 Introduction ...........................................................................................................................................32 5.2 Respondent Group Overview...............................................................................................................32 5.3 STA Membership Fee Structure ..........................................................................................................34 5.4 Potential DMF Funding Mix ..................................................................................................................36 5.5 Evaluation of STA as a DMO ...............................................................................................................38 5.6 Existing Membership Services & Benefits ...........................................................................................41 5.7 Potential Membership Services & Benefits..........................................................................................44 5.8 Conclusions & Implications ..................................................................................................................46


6.0 STA BUSINESS MODEL ALTERNATIVES.................................................................................. 49

6.1 STA Sustainable Funding Objective ....................................................................................................49 6.2 Three Funding Alternatives ..................................................................................................................49

7.0 DESTINATION MARKETING FEE ALTERNATIVES ................................................................... 50

7.1 Introduction ...........................................................................................................................................50 7.2 Dedicated Rooms Levy Alternatives ....................................................................................................50 7.3 Other Levy Alternatives ........................................................................................................................52

8.0 REVENUE AND OPERATING COST RATIONALIZATION ......................................................... 54

8.1 Introduction ...........................................................................................................................................54 8.2 Review of Membership Fee Alternatives .............................................................................................54 8.3 Review of STA Core Services Alternatives .........................................................................................58

9.0 STA OPERATING BUDGET ALTERNATIVES ............................................................................ 62

9.1 Introduction ...........................................................................................................................................62 9.2 STA Base Level Operating Budget of $1.3 Million ..............................................................................62 9.3 STA Mid-Level Operating Budget of $1.32 Million ..............................................................................65 9.4 STA Enhanced Operating Budget of $1.6 Million................................................................................68 9.5 Summary...............................................................................................................................................71

APPENDIX A: STA MEMBER SURVEY

PKF Consulting Toronto

Development of a Strategic Business Plan for the Stratford Tourism Alliance Final Report Prepared for: The Stratford Tourism Alliance

PKF Consulting Inc. September 2012

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1.0 INTRODUCTION AND SCOPE OF STUDY

In May 2012, the Stratford Tourism Alliance (STA) retained the services of PKF Consulting Inc. (PKF) to

assist in the development of a long-term, stable revenue-generating strategy to allow the organization to

continue its mandate.

The current year is critical to the future of the STA, considering the expiration of transitional DMF funding

from the Province of Ontario on December 31, 2012 and absence of a sustainable funding policy to

replace it, and given the fact that it has been five years since the current STA membership structure has

been reviewed.

The scope of work for the subject study has involved a phased work program. In order to complete Phase

I: Diagnosis and Discovery, PKF has conducted the following steps:

A review of STA’s current situation, including roles and responsibilities, organizational structure,

membership and fee structure, revenue-generating strategies and programmes and 3 year historical operating results;

Comparable analysis of “like” DMOs and best practice review;

STA Board and other stakeholder consultation via telephone;

Development, distribution and analysis of an online Member Survey to generate feedback on the

value of STA membership, programs and fee structures, and determine opportunities for future improvements;

Identification of 3 preliminary revenue-generating business model alternatives; and

Documentation of study research, findings and conclusions.

Phase II included the prioritization of existing and proposed business and marketing initiatives, evaluation

of alternative revenue-generating models with 5-year operating projections, and consultation with STA

members and stakeholders.

The Final Report includes the results of the Phase I and II work programs, formatted as a Strategic

Business Plan, based on a recommended long-term business model that identifies the most effective

membership structure focused on:

Generating revenues in the potential absence of DMF transitional funding;

Developing a membership structure that is perceived as “equitable” to all members;




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Providing “pay-to-play” marketing opportunities;

Articulating a vision for the STA focused on providing value and business expansion opportunities

to STA members and stakeholders; and

Attracting visitors to Stratford and Perth County for the benefit of STA members.




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2.0 CURRENT SITUATION ASSESSMENT

2.1 Introduction

The following section provides a review of STA’s current situation, including roles and responsibilities,

organizational structure, membership and fee structure, revenue-generating strategies and programs and a

review of the organization’s historical operating results from 2010 to 2011 together with the 2012 budget.

2.2 STA Roles & Responsibilities

The Stratford Tourism Alliance (STA) was incorporated as a member driven, private-sector led, not-for-profit

destination marketing organization in 2007. STA’s objective, mission and purpose are:

Objective:

To make Stratford one of Canada’s pre-eminent tourism year round tourism destinations by promoting a positive and vibrant image of Stratford.

Mission:

To be the leading tourism marketing organization for Stratford and increase the quantity and quality of overnight visitors for the economic benefit of its members and the community at large.

Purpose:

To manage marketing strategies that will generate greater awareness, interest and stimulate intentions to visit the “Stratford experience.”

2.3 Organizational Structure

As an organization, STA is a membership driven marketing company directed by a Board of Directors

comprised of private and public sector representatives. The corporation is managed by an Executive

Director with 4 full time staff, 5 seasonal staff and 3 contract positions, who in turn report to 5-member

Executive Committee and 16-member Board of Directors. The Board of Directors is comprised of a cross-

section of the tourism sector and municipality, including representation from:

City of Stratford City Centre Committee (BIA) Stratford & District Chamber of Commerce Arts and Culture Sector Culinary Perth County Visitors Association Restaurant Sector Retail Sector Stratford Shakespeare Festival Stratford Area Motel Hotel Association




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Stratford Area B&B Association Stratford Partners in Accommodation 3 Members at Large Ministry of Tourism, Culture and Sport

Exhibit 2-1 provides the organizational structure of the STA.

2.4 STA Programs and Experiences

Stratford Tourism Alliance has focused its efforts on developing and marketing Stratford as a four season

destination based on the 3 C’s – Character, Culture and Cuisine. STA’s 2012 Marketing Plan calls for the

development, packaging and marketing of 7 seasonal campaigns, with multiple campaigns held during the

Spring and Fall periods (refer to Table 2-1). Target markets include families for the Swan Weekend;

naturalists and outdoor nature lovers related to the Spring foraging product; and younger and mature

couples, cultural and horticultural enthusiasts, culture and culinary tourists from the GTA and Southwestern

Ontario for all seasonal campaigns; with the objective being to increase visitor volumes and attract a

broader cultural tourism demographic to experience Stratford.

STA initiates and manages several events including: Swan Weekend, Spring Heritage Weekend, and

Savour Stratford Perth County Culinary Festival, the latter of which has become a major success. After

incubating Savour Stratford for the past 4 years, the profile of the fall festival has increased, with attendance

reaching 29,000 in 2011.

STA’s creative communications strategies and marketing tactics focus on e-marketing (www.visitstratford.ca

website, YouTube Channels, 2 Twitter Channels, 2 Facebook pages, year-round on-line campaigns), paid

print advertising, Visitor Guides, Monthly Events Calendar, media relations and joint marketing partnerships

with Stratford Shakespeare Festival, Stratford City Centre, Stratford Area Bed & Breakfast Association

(SABBA), City of Stratford and Perth County Visitors Association.

In addition to developing and marketing its own Stratford branded programs and experiences, STA monitors

and participates in RTO 4 product, marketing and human resource development, where appropriate, as part

of the Province’s regional tourism economic strategy.

http://www.visitstratford.ca/


EXHIBIT 2-1

STRATFORD TOURISM ALLIANCE

Board of Directors

(16)

Executive Committee

(5)

Executive Director

Marketing Coordinator

Administrative

Assistant

Programme Development -

Online and Memberships

Programme Development -

Culinary

Seasonal Staff

(5)

Short Term Projects (3)



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TABLE 2-1 STA MARKETING PLAN, 2012

SPRING SUMMER FALL WINTER Time Period March - April July – Early

August Aug – Sept Mid Nov – Mid Dec.

Theme “Naturalist Stratford” “Stratford – Festival Country

“Savour Stratford”

“Digital Victorian Christmas”

Experiences Swan Weekend Birding Tours / Routes

Theatre Music Walks and Strolls

Savour Stratford Perth County Culinary Festival

Outdoor Digital Art Show Victorian Christmas

Time Period May October Theme “Preview the

Season” “Stratford- Fall

Colours & Touring

Experiences Preview the Festival Season Blooming Stratford

Theatre Touring Culinary

Time Period June Theme “Heritage and Food” Experiences Spring Heritage

Weekend Heritage Food

Targets Families; Younger and mature couples Naturalists and outdoor nature lovers Cultural and Horticultural Tourists Cultural and Culinary Tourists GTA; Mississauga, Oakville, London, KW

Tactics On line: Paid Advertising; Email; Twitter Media Relations Print: S.W. Ontario – London; KW

Source: STA 2012 Business and Marketing Plan

2.5 STA Membership 2008-2012

STA membership is extended to any private or public sector business that wishes to increase their business by promoting their product and services to potential visitors to the region, marketing to the local Stratford

community or wishes to take advantage of the marketing opportunities of STA.1 Since 2008, membership in

the Stratford Tourism Alliance has grown from 226 to 251 members, representing an 11% increase. The strongest growth has occurred amongst the restaurant/food producers sector, which has shown a 45%

increase over the past 5 years, followed by the attraction/event sector at 12% and the retail sector at 6%.

The only category to witness a decline has been the accommodation sector, which has declined from 73

1 www.visitstratford.ca website




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members in 2008 to 65 members in 2012. The decline in accommodation membership has largely been

due to the closure of several B&B and hotel operations and the withdrawal of a number of seasonal

operations which did not see the value in joining STA. Due to the rolling nature of STA’s membership

structure (ie. renewals are based on the time of year members join the organization), the total 2012

membership of 251, maybe somewhat understated.

As of June 2012, STA had 251 members with balanced representation from the retail, accommodation and

attraction/event sectors (each representing one-quarter of membership). The remaining 25% of

membership is comprised of the foodservice sector and other tourism associations within the Stratford area.

TABLE 2-2

STA MEMBERSHIP CATEGORIES & GROWTH 2008-2012

STA Member Category

2008

2009

2010

2011

2012

% Chg 2008- 2012

Retail Accommodation Restaurants & Food Producers Attraction/Event Destination/Association

62 73 40 51 0

75 70 44 50 0

62 63 64 52 0

64 69 59 54 6

66 65 58 57 5

6% -11% 45% 12%

-- TOTAL 226 239 241 252 251 11% Source: STA

2.6 STA Membership Fee Structure

Table 2-3 provides a historical summary of STA’s membership fee structure from 2007 to 2012. Current

membership fees are based on a sectorial approach, including rates for the following 6 categories:

Accommodation Restaurants Retail Events and Attractions Destinations and Associations Food Producers

The Accommodation category is further broken down by size of establishment in terms of number of

rooms, while the Events and Attractions and Destinations and Associations categories are further

segmented by geographic location – within Perth County and outside Perth County.

Between 2007 and 2010, accommodation operators were given the choice between a Membership Plan or

DMF Plan:



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Membership Plan (In or outside Stratford)

1,2, or 3 rooms or less: $250 4 to 9 rooms: $100.00 per room to a maximum of $1,000

DMF Plan (in or outside Stratford)

Mandatory for accommodations with 10+ rooms 3% of gross rooms revenue

However, with the introduction of the HST in July 2010 and the Province of Ontario’s elimination of the 3%

DMF on accommodations, STA implemented a 2-tiered Accommodation Membership plan in 2011 based on

volume or property size:

Volume Member Plan

$2.00 per room night sold; OR

Stratford Per Room Plan

Flat charge based on number of rooms ranging from $50 to $125 per room.

Rates per accommodation property size category increased from 4 to 7% in 2012, ranging from $53 to $130

per room, while volume-based fees have remained the same at $2.00 per room night sold.

Between 2007 and 2010 membership fees remained static at $300 for Restaurants and Retailers and

$150 for events, Attractions and not-for-profit Associations. In 2011, membership fees were increased

by approximately 1.5 to 3 times within the Destination and Attraction sector, with Destination and

Associations located outside Perth County and benefiting from the Stratford visitor market paying a premium

to belong to STA. Events and Attractions saw a 30% increase in membership fees in 2011, followed by a

17% increase amongst Restaurants and Retailers. In 2012, membership fees increased by 5 to 6%

amongst the member categories, with fees for Events and Attractions located outside Perth County

increased by 22% for one-time events and 50% for annual events.



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TABLE 2-3 STA ANNUAL MEMBERSHIP FEE STRUCTURE, 2007-2012

% Change

2007- 2007-2010 2011 2012 2012

Accommodations Volume-Based Fee / occupied room night $2.00 $2.00 0%

Under 8 Rooms $125.00 $130.00 4% 9-19 Rooms $100.00 $105.00 5%

20-50 Rooms $75.00 $80.00 7% 51+ Rooms $50.00 $53.00 6%

Per Room DMF Plan /Membership Option Restaurants

$300.00 $350.00 $370.00 23% Retail

$300.00 $350.00 $370.00 23% Events and Attractions

In County - Annual $150.00 $200.00 $210.00 40% In County - One Time $35.00 $45.00 $50.00 43%

Outside Perth County - Annual $150.00 $200.00 $300.00 100% Outside Perth County - One Time $35.00 $45.00 $55.00 57%

Destinations and Associations In County - Annual $150.00 $350.00 $370.00 147%

Outside Perth County - Annual $150.00 $600.00 $630.00 320% Food Producers

No Category $200.00 $210.00 5% Source: STA Membership Liaison Committee Minutes

Table 2-4 provides a breakdown of STA membership fee revenues by category in 2012. STA membership

fees from its current 251 members totaled over $101,000 in 2012. As can be seen from Table 2-3, while

retailers comprise 26% of STA’s membership, they contribute 22% of the membership fee revenues. At the

same time, accommodation operators also comprise 26% of the membership base, while funding just under

one-half of the membership fees. It should be noted that the majority of membership fees from

accommodation properties in 2012 were based on a per room fee (75%), since the DMF was not in place

during 2012, with 25% of properties opting for the volume based plan at $2.00 per occupied room night.



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Attractions and events constitute 23% of the membership base and 11% of the fees. The remaining

member categories of restaurants/culinary, food producers and destination/associations tend to be more

evenly balanced in their membership base and fee contributions.

TABLE 2-4 STA MEMBERSHIP REVENUES - 2012

STA Member Category

Total Members

%

Membership Fees

% Fees

Retail Accommodation Attraction/Event Restaurant/Culinary Food Producer Destination/Association

66 65 57 43 15 5

26% 26% 23% 17%

6% 2%

$22,225 $47,852 $11,500 $15,675 $2,940 $1,110

22% 47% 11% 15% 3% 1%

TOTAL 251 100% $101,302 100% Source: STA June 2012

2.7 Stratford Partners in Accommodation – Destination Marketing Fund

Stratford Partners in Accommodation is a voluntary organization of 65 STA accommodation property

members, representing 735 rooms (62% of Stratford’s total accommodation supply), which have historically

collected a Destination Marketing Fee, based on 3% of rooms revenue. The majority of fees collected by

the Stratford Partners in Accommodation are provided to the Stratford Tourism Alliances for marketing

purposes. Table 2-5 provides a summary of the Destination Marketing Funds contributed to STA over the

2007 to 2012 period. From 2007 to 2009, Destination Marketing Funds ranged from $242,000 to $283,000

which represented 25% to 30% of STA’s annual budget of approximately $975,000.

With the implementation of the 13% HST in July 2010, the practice of charging a 3% Destination Marketing

Fees on room revenue ceased in the Province of Ontario. Since mid-2010, the Ministry of Tourism, Culture

and Sport has provided DMF transitional funds to STA in order to replace the historical funds generated by

the DMF. The provincial DMF transitional funds have ranged from $244,000 in 2010, to $310,000 in 2011

and $286,000 in 2012.



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TABLE 2-5 STRATFORD TOURISM ALLIANCE

DESTINATION MARKETING FUNDS 2007-2012 2007 2008 2009 2010 2011 2012 DESTINATION MARKETING FUNDS

Stratford Partners in Accommodation $242,389 $283,470 $256,025 $95,290 $2,780 $27,000 DMF Provincial Transition $244,000 $310,000 $286,000 TOTAL DMF $242,389 $283,470 $256,025 $339,290 $312,780 $313,000 % of Total STA Revenues 24% 30% 26% 27% 24% 25% Source: STA Financial Statements, 2007-2012

In early 2012, the provincial government announced that these transitional funds will only be provided up

until the end of 2013, thereby requiring STA to find a means to generate an additional $300,000.

2.8 Historic Operating Results (2010-2012)

Exhibit 2-2 provides a 3-year historical summary of STA’s operating budget from 2010 to 2012. For the

past 3 years, STA’s operating budget has been in the range of $1.23 to $1.29 Million, with approximately

60% of the revenues derived through Stratford-based sources and 40% derived through provincial and

federal sources.

2.8.1 STA Revenues

Stratford Tourism Alliance Operations

The City of Stratford is the major source of revenue for STA, providing the DMO with an annual operating grant of $362,000 in 2012, a 5% increase over 2010 levels.

STA memberships have fluctuated over the past 3 years, from an estimated $66,000 in 2010 to

a high of $102,000 in 2011, before declining by 14% to a budgeted $87,500 for 2012, representing 7% of STA’s overall revenues. It should be noted that due to the nature of membership renewal dates throughout the year, 2012 membership fees will likely be on par with 2011 revenues.

The Destination Marketing Fee accounted for $95,300 or 8% of STA’s operating budget in 2010

before it was discontinued in mid-year. Since its elimination, DMF Provincial Transition funds provided $244,000 to STA’s operating income in 2010, increasing to $310,000 in 2011, before declining by 8% in the 2012 budget to $286,000. The DMF represents approximately 25% of STA’s overall operating revenues.

Stratford’s City Centre Committee Partnership provides an estimated $36,500 or 3% of STA’s

budget for downtown beautification programs including Swan Weekend, Victorian Christmas and the creation of the walking, heritage and culinary tours.

EXHIBIT 2-2 STRATFORD TOURISM ALLIANCE

Historical Operating Budgets, 2010 - 2012 2010 Actual % 2011 Actual % 2012 Budget % % Chg 2010-12

REVENUES Stratford Sources

City of Stratford $346,030 28% $363,900 28% $362,000 29% STA Memberships $65,960 5% $101,640 8% $87,500 7% DMF $95,290 8% $2,780 0% $27,000 2% City Centre Committee Partnership $35,000 3% $36,500 3% $36,500 3% Marketing Sales $96,630 8% $72,570 6% $70,000 6% Other Misc. $5,020 0% $10,780 1% $0 0% Retained Earnings $56,960 5% $80,330 6% $28,100 2%

5%

33% -72%

4% -28%

-100% -51%

Subtotal $700,890 56% $668,500 52% $611,100 50% -13% Provincial / Federal Sources

DMF Provincial Transition $244,000 19% $310,000 24% $286,000 23% Ontario Tourism Partnership $31,700 3% $59,940 5% $60,000 5% Ministry of Agriculture Partnership $84,100 7% $37,240 3% $0 0% Celebrate Ontario Partnership $78,500 6% $75,000 6% $75,000 6% Summer Student Grants $13,040 1% $16,850 1% $16,900 1%

17% 89%

-100% -4% 30%

Subtotal $451,340 36% $499,030 39% $437,900 36% -3% Savour Stratford Festival

Events (Savour Stratford Festival) $100,060 8% $120,600 9% $180,800 15%

81% Subtotal $100,060 8% $120,600 9% $180,800 15% 81%

TOTAL REVENUES $1,252,290 100% $1,288,130 100% $1,229,800 100% -2% EXPENSES Savour Stratford Festival

Contract Staff $74,710 75% $60,000 50% $43,000 24% Bookkeeping $4,276 4% $6,111 5% $5,000 3% Operating Expenses $137,700 138% $165,050 137% $213,000 118%

-42% 17% 55%

Subtotal $216,686 217% $231,161 192% $261,000 144% 20% Attractions & Special Projects

Attraction Operating Expenses $10,770 1% $22,590 2% $21,000 2% Special Projects $0 0% $0 0% $50,000 4%

95%

Subtotal $10,770 1% $22,590 2% $71,000 6% 559% Marketing

Media Buys $272,600 22% $277,260 22% $260,700 21% Creative $152,440 12% $111,000 9% $67,000 5% Media Relations $20,450 2% $25,920 2% $25,900 2% Print Guides $99,530 8% $113,860 9% $47,500 4%

-4%

-56% 27%

-52% Subtotal $545,020 44% $528,040 41% $401,100 33% -26%

Administration & General Salaries, Wages and Benefits $348,460 28% $418,170 32% $442,800 36% Industry Association Membership Fees $10,380 1% $4,550 0% $4,000 0% Telecommunications $13,817 1% $18,109 1% $12,980 1% Office Supplies $9,403 1% $9,776 1% $9,000 1% Postage/Delivery $3,217 0% $5,615 0% $4,700 0% Financial Services $8,190 1% $10,515 1% $8,600 1% Insurance $2,645 1% $2,503 1% $2,500 1%

27%

-61% -6% -4% 46% 5%

-5% Subtotal $396,111 32% $469,239 36% $484,580 39% 22%

TOTAL EXPENDITURES $1,168,587 93% $1,251,030 97% $1,217,680 99% 4% EXCESS OF REVENUES OVER EXPENDITURES $83,703 7% $37,100 3% $12,120 1% -86%

CAPITAL EXPENDITURES

Computers $3,473 $7,038 $2,500 Furniture $0 $2,039 $0

-28%

Total Capital Expenditures $3,473 $9,076 $2,500 -28% Source: Stratford Tourism Alliance and PKF Consulting



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Marketing sales represented just under $73,000 of the 2011 operating results, representing a

25% decline over 2010 results. The 2012 budget calls for $70,000 in marketing sales.

Various provincial sources of revenue including grants from the Ontario Tourism Partnership, Celebrate Ontario and the Ministry of Agriculture have declined by 30% from $194,000 in 2010 to $135,000 in 2012. The decline is due to the end of the 2 year program matching dollar funding agreement with the Ministry of Agriculture to develop a culinary tourism strategy, which is not assumed to be an ongoing annual funding programme.

Summer Student Grants for seasonal Visitor Information Centre staff account for just under

$17,000 or 1% of operating revenues.

Other miscellaneous revenues and retained earnings have historically accounted for approximately 5% of revenue, with the 2012 budget allocated at $28,000 or 2% of revenues.

Savour Stratford Festival Event Revenues

Event revenues generated by the Savour Stratford Festival have increased by 20% from $100,000 in 2010 to $121,000 in 2011 and have been budgeted to improve by a further 50% in 2012 to $181,000. In 2012, Savour Stratford is expected to account for 15% of STA’s overall operating revenues.

2.8.2 Expenses

Savour Stratford Festival Expenses

Direct expenses associated with the Savour Stratford Festival include contract positions at

$74,000 in 2010, which decreased to $60,000 in 2011 and have been budgeted to decrease by a further 28% to $43,000 in 2012. At the same time operating expenses for the Festival have increased from $138,000 in 2010, to $165,000 in 2011 (20% increase) and are expected to increase by a further 30% to reach $213,000 in 2012. Total expenses related to the Festival are expected to represent 144% of revenues in 2012, down from 200% of revenues in previous years.

Stratford Tourism Alliance Operations

Expenses related to Attractions and Special Projects have increased from $11,000 in 2010, to $22,600 in 2011, to a budget of $71,000 for 2012, which represents 6% of the overall STA budget. The 2012 increase in expenses is directly attributable to the subject Strategic Business Plan project.

Marketing expenses have decreased from $545,000 in 2010 to a budget of $401,000 in 2012,

which represents one-third of STA’s operating expenses.

Administration & General expenses have increased by 22% from $396,000 in 2010 to a budget of $485,000 in 2012 or 39% of the overall budget. Salaries, wages and benefits account for the largest share of A&G costs at a budget of $443,000 in 2012, with telecommunications, office supplies, postage/delivery, insurance and banking charges accounting for 4% of STA’s overall operating expenditures. STA’s is located within a city-owned building, and is not charged any rent or occupancy-related costs for the office space.



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2.8.3 Excess of Revenues Over Expenditures

STA operates on a break-even basis. In 2010, STA had retained earnings of $84,000, which were

utilized towards the 2011 operating budget. Similarly, retained earnings of $37,000 in 2011 were utilized towards the 2012 operating budget.

2.8.4 Capital Expenditures

Capital expenditures for computers and furniture have ranged between $2,500 to $9,000 over the

past 3 years, with monies allocated out of STA’s excess operating revenues, prior to allocating the balance to retained earnings within the following year’s budget.

2.9 Summary

Since 2008, membership in the Stratford Tourism Alliance has grown from 226 to 251 members,

representing an 11% increase. The current membership is comprised of a balanced representation from the

retail, accommodation and attraction/event sectors (each representing one-quarter of membership). The

remaining 25% of membership is comprised of the foodservice sector and other tourism associations within

the Stratford area.

Current membership fees are based on a sectorial approach, including rates for the following 6 categories:

Accommodation Restaurants Retail Events and Attractions Destinations and Associations Food Producers

For the past 3 years, STA’s operating budget has been in the range of $1.23 to $1.29 Million, with

approximately 60% of the revenues derived through Stratford-based sources and 40% derived through

provincial and federal sources.

The City of Stratford is the major source of revenue for STA, providing approximately one-third of the

organization’s annual operating budget, with a grant of $362,000 in 2012.

In 2012, STA’s 251 members generated $101,000 in membership fees. Based on membership categories

alone, there would appear to be an imbalance in terms of the membership revenues generated for STA.

While accommodation members represent approximately one-quarter of the membership, they contributed

close to 50% of STA’s membership fees. Conversely, Attractions & Events comprise approximately one-

quarter of the membership, but only account for 11% of the membership revenues. Attractions & Events



Page 13

membership revenues are quite low because it is primarily a category that includes social clubs who have

only one major event as a one-time listing fee, as well as a full year membership for those who have more

than one event per year and seek year-round marketing. The remaining member categories of

restaurants/culinary, food producers and destination/associations tend to be more evenly balanced in their

membership base and fee contributions.

In addition to membership fees, voluntary Destination Marketing Fees charged on 3% of gross rooms

revenue by close to two-thirds of Stratford’s room inventory, generated an average of $260,000 per annum

for STA. With the elimination of the DMF in July 2010, the Province replaced these funds at an average rate

of $280,000 per annum over the past 3 years. DMF have historically accounted for approximately 25% of

STA’s operating revenues. Revenue generating strategies will need to be developed in order to replace the

loss of this funding in 2013.



Page 14

3.0 REGIONAL TOURISM OVERVIEW

3.1 Introduction

The following section provides a Regional Tourism Market Overview for the Stratford and Perth County

area, based on the latest Statistics Canada’s Tourism Survey of Residents of Canada (TSRC) and

International Travel Survey (ITS) data (2010) for Perth County (CD 31). We have also conducted an

assessment of Stratford’s immediate accommodation market, to get a sense of total overnight visits to the

City and estimate the amount of revenue generated by this sector.

3.2 Regional Visitor Volumes and Spending

The City of Stratford is the largest community within Perth County, which is located in the centre of

Southwestern Ontario. Perth County is officially part of Ontario Tourism Region 4 (RTO 4), which also

includes: Huron, Waterloo, and Wellington Region. Due to the coding plan used in the Statistics Canada

TRSC and ITS surveys, limited information can be extracted for the City of Stratford directly. As such, PKF

has conducted an analysis of visitor volumes to Perth County (CD 31), Region 4 (RTO4), and to the

Province of Ontario overall.

As shown in Table 3-1, an estimated 1.3 million same-day and overnight visitors came to Perth County in 2010. This total represents an estimated 1.2% of tourism to RTO 4, and 14.4% of all tourism in Ontario.

Visitation to the County has increased by 80,300 person-visits or 6.7% over the 2006-2010 period,

which is slightly lower than RTO 4 at 7.6% growth, but significantly higher than growth in Ontario

tourism, which was estimated at 0.4% over the 5-year period.

TABLE 3-1

TOTAL TOURISM VISITATION TO PERTH COUNTY, RTO4 AND ONTARIO - 2006-2010 Length of Stay 2006 2007 2008 2009 2010 5-Year Growth PROVINCE OF ONTARIO Overnight 42,429,200 41.1% 42,958,800 41.0% 42,295,000 41.9% 42,468,500 41.9% 42,819,000 41.3% 389,800 0.9% Same-Day 60,849,100 58.9% 61,804,000 59.0% 58,703,000 58.1% 58,992,800 58.1% 60,907,700 58.7% 58,600 0.1% TOTAL 103,278,300 100.0% 104,762,800 100.0% 100,998,000 100.0% 101,461,300 100.0% 103,726,700 100.0% 448,400 % Change -- 1.4% -3.6% 0.5% 2.2% 0.4% ONTARIO TOURISM REGION 4 (RTO 4) Overnight 3,008,300 36.6% 3,024,800 37.2% 2,919,600 36.4% 3,035,700 36.4% 3,126,800 35.3% 118,500 3.9% Same-Day 5,212,900 63.4% 5,102,800 62.8% 5,105,200 63.6% 5,310,200 63.6% 5,723,200 64.7% 510,300 9.8% TOTAL 8,221,200 100.0% 8,127,600 100.0% 8,024,800 100.0% 8,345,900 100.0% 8,850,000 100.0% 628,800 % Change -- -1.1% -1.3% 4.0% 6.0% 7.6% PERTH COUNTY (CD 31) Overnight 410,900 34.5% 548,200 43.6% 465,200 34.7% 483,000 37.1% 469,000 36.8% 58,100 14.1% Same-Day 781,700 65.5% 708,900 56.4% 874,600 65.3% 819,800 62.9% 803,900 63.2% 22,200 2.8% TOTAL 1,192,600 100.0% 1,257,100 100.0% 1,339,800 100.0% 1,302,800 100.0% 1,272,900 100.0% 80,300 % Change -- 5.4% 6.6% -2.8% -2.3% 6.7%

Source: Statistics Canada – TSRC & ITS 2006-2010



Page 15

About 469,000 visitors stayed overnight (37%) in Perth County in 2010, as compared to 803,900 same-day

visitors (63%). At 37% of all visits, Perth County attracted a higher proportion of overnight trips than RTO 4 as a whole (at 35%), but less than the Province of Ontario (at 41%). The mix of overnight to same-

day visits has fluctuated over the 5-year period, with overnight demand increasing by 14% (58,100), and

same-day visitation increasing by 3% (22,200). When comparing 5-year growth in overnight visitation,

Perth County’s overnight growth rate was 10 percentage points higher than RTO 4, and 13 points higher than Ontario overall.

As shown in Table 3-2, in 2010, Ontario visits to Perth County made up 75% of overall visitation, US visitors

made up about 23%, and other Canada and Overseas visits made up the remaining 2% - for a total of

1,273,000 visits. Within the Ontario visitor segment, an estimated 62,800 visitors originated from within

Perth County (5%), 301,900 from other parts of RTO 4 (24%), and 596,600 from Southern Ontario (47%).

The largest influx of visitation in terms of overall visits derived from within Region 4, at a total of 149,000

visitors (including Perth County). While US visitation has declined by 51,800 visitors over the 5-year period,

changing from 29% of total visitation to 23% of all visits, this represents only a 15% decline since 2006.

Consequently, the Stratford area remains dependent on both GTA and US visitation.

TABLE 3-2 GEOGRAPHIC MARKETS TO PERTH COUNTY - 2006-2010

Geographic Markets 2006 2007 2008 2009 2010 5-Year Growth

Total % Total % Total % Total % Total % Visits % grow th CD31: Perth County 17,100 1.4% 22,800 1.8% 11,800 0.9% 49,600 3.8% 62,800 4.9% 45,700 267.3% Other RTO 4 188,600 15.8% 256,300 20.4% 283,700 21.2% 284,500 21.8% 301,900 23.7% 113,300 60.1% Other Ontario 598,900 50.2% 551,400 43.9% 701,800 52.4% 676,500 51.9% 596,600 46.9% -2,300 -0.4% Other Canada 18,400 1.5% 17,600 1.4% 1,400 0.1% 11,200 0.9% 11,300 0.9% -7,100 -38.6% Total USA 343,500 28.8% 391,200 31.1% 323,900 24.2% 267,700 20.5% 291,700 22.9% -51,800 -15.1% Total Overseas 26,100 2.2% 17,900 1.4% 17,100 1.3% 13,300 1.0% 8,700 0.7% -17,400 -66.7%

TOTAL 1,192,600 100.0% 1,257,100 100.0% 1,339,800 100.0% 1,302,800 100.0% 1,272,900 100.0% 80,300 6.7%


Table 3-3 shows that over the last 3 years, interest in Festivals/Fairs, Cultural Performances and

Museums/Art Galleries have declined. An estimated 45% of total visitors to Perth County participated in

these types of cultural activities in 2008, which declined to 39% of total visitors in 2010. On the other

hand, participating in sports events has increased from 1% to over 2% of visitor. This presents a need/opportunity for the STA to increase marketing activity relating to cultural activities, with sport tourism providing a very small segment of the current market opportunity.



Page 16

TABLE 3-3 VISITORS ACTIVITIES IN PERTH COUNTY - 2008-2010 Activities Participated In 2008 2009 2010

Festivals/Fairs 8.6% 7.9% 6.9% Cultural Performances 29.3% 26.7% 27.7% Museums/Art Galleries 6.7% 5.9% 4.7% Zoos/Aquariums/Botanical Gardens 1.3% 1.0% 1.3% Sports Events 1.4% 1.6% 2.3% Casinos 0.9% 0.6% 0.5% Theme Parks 0.7% 0.7% 0.5% National/Provincial Nature Parks 3.5% 3.7% 2.7% Historic Sites 5.3% 5.1% 4.0% Any Outdoor/Sports Activity 7.7% 8.7% 7.8%


Table 3-4 provides an overview of visitor spending throughout the Province of Ontario, RTO 4, and within

Perth County over the 2006-2010 period. As shown, visitor spending in Stratford and Perth County increased by over 17% during the 5-year period, as compared to 2% growth in RTO 4, and a 1% decline

in spending in Ontario overall. The average spend per visitor has also increased by 10% in Perth County,

as compared to a 6% decline in RTO 4, and 1% decline in Ontario. Although the average spend per

overnight visit to Perth has dropped $6 during the 5 years, it remains $137 higher than RTO 4 overall, and

$12 higher than the Ontario average overnight visitor spend.

TABLE 3-4

VISITOR SPENDING GROWTH IN PERTH COUNTY, RTO 4, AND ONTARIO - 2006-2010 (In $Millions)

2006 2007 2008 2009 2010 5-year Grow th PROVINCE OF ONTARIO Visitor Spending ($ Millions) $17,208.7 $17,286.9 $17,626.0 $16,390.9 $17,095.2 -0.7% Average Spend per Person $167 $165 $175 $162 $165 -1.3% Average Spend per Overnight Visit $300 $298 $310 $285 $290 -3.5% RTO 4 Visitor Spending ($ Millions) $812.7 $887.7 $925.8 $834.4 $826.4 1.7% Average Spend per Person $99 $109 $115 $100 $93 -5.5% Average Spend per Overnight Visit $184 $205 $220 $182 $165 -10.0% PERTH COUNTY (CD 31) Visitor Spending ($ Millions) $164.1 $225.7 $178.3 $184.1 $192.7 17.4% Average Spend per Person $138 $180 $133 $141 $151 10.0% Average Spend per Overnight Visit $308 $344 $289 $277 $302 -2.1%




Page 17

From a seasonality perspective, Figure 3-1 shows that

in 2010, 34% of visits to Stratford and Perth County occurred during the Summer months (July to

September), followed by Spring at 26%, Fall at 23%,

and Winter at 17%. The high level of summer visitation

corresponds to the high ratio of leisure/pleasure visits

to the market, which tend to arrive during peak travel

months.

3.3 City of Stratford – Demographic Overview

With respect to purpose of trip, Figure 3-2 shows

that just under 96% of visitors to Perth County in 2010 arrived for pleasure purposes, to visit friends and relatives, or for other personal reasons. About 4% of visitors came for business

reasons in 2010. Again, this speaks to the

importance of tourism and the necessity for an

appropriate level of tourism marketing in the

Stratford area.

According to FP Markets – Canadian Demographics 2012, the City of Stratford had a population of 32,400

people in 2012. Retail sales generated by 279 establishments in the City have been estimated to reach

$618 Million in 2012, or $19,100 per capita, which is 39% above the National average. At the same, the

average household income amongst residents of Stratford was estimated at $76,000 for 2012, which is

5% below the National average. This demonstrates the importance of visitor spending to Stratford’s

overall economy and in particular to the retail sector.

Stratford was recently recognized by the Intelligent Community Forum as one of the 2012 Top Seven

Intelligent Communities of the Year, and is home to the University of Waterloo’s Stratford Institute. The City

was built on agriculture, industry and culture in the 1800s, but Stratford really began to recognize the

significance of tourism as an economic generator with the opening of the Stratford Shakespeare Festival in

1953. The Stratford Festival has helped to make the City of Stratford one of Canada’s foremost tourist



Page 18

destinations, and one of the primary objectives of the STA is to maintain that image of Stratford, with the

intent to drive tourism on a year-round basis.

The next section of this report focuses on PKF’s analysis of current and historic accommodation product

performance in the City of Stratford, which provides a useful indication of how tourism is currently impacting

the local economy.

3.4 City of Stratford – Accommodation Market Overview

The Stratford accommodation market consists of a broad range of accommodation types, including full

service hotels, limited service motels, inns, and bed and breakfast operations, totaling 124 properties with

an estimated 1,180 available guest rooms per day during the peak season. As shown in Table 3-5, over

83% of properties in Stratford are B&B’s, yet these properties represent only 27% of the total room supply in

the market.

TABLE 3-5

STRATFORD ACCOMMODATION SUPPLY - 2012 Properties Rooms B&Bs 103 83% 320 27% Hotels/Motels 21 17% 860 73% TOTAL SUPPLY 124 100% 1,180 100%

Source: STA, PKF Consulting

Recent changes to the Stratford accommodation market include the closure of the 115-room River Garden

Inn in August 2010. There are rumours of a proposed 30-40 room upscale inn property, adjacent to the

Arden Park Hotel on Ontario Street, however, there are currently no proposed hotel developments

registered by the Stratford Planning Department.

Table 3-6 summarizes the historical market occupancy and average daily rate information achieved by

Stratford’s accommodation market over the past 5 years from 2007 through 2011.



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TABLE 3-6 STRATFORD ACCOMMODATION MARKET

HISTORIC MARKET PERFORMANCE - 2007-2011, YTD April 2011/2012

TOTAL COMPETITIVE MARKET

2007

2008

2009

2010

2011

Rooms 1,247 1,295 1,295 1,247 1,180 Annual Occupancy 28.6% 27.9% 26.4% 26.7% 28.0% Average Daily Rate $102.00 $101.92 $102.21 $103.00 $102.22 RevPar $29.21 $28.41 $26.98 $27.50 $28.64 Available Room Nights 455,280 472,790 472,675 455,080 430,700 Occupied Room Nights 130,387 131,805 124,765 121,503 120,691 Rooms Revenue ($Millions) $13.3 $13.4 $12.8 $12.5 $12.3 MARKET GROWTH 2007 2008 2009 2010 2011 Available Rooms NA 3.8% 0.0% -3.7% -5.4% Occupied Room Nights NA 1.1% -5.3% -2.6% -0.7% Average Daily Rate NA -0.1% 0.3% 0.8% -0.8%

Source: PKF Consulting

As summarized in Table 3-6, occupancy levels within the overall competitive market have remained

relatively flat, ranging from 26%-29% over the 5-year period. Excluding B&B operations, occupancy levels

for hotel and motels within the Stratford area are approximately 10 occupancy points higher than the market

average. Typically occupancy levels are in the range of 55% to 60% for the Province of Ontario overall.

The lower occupancy levels in Stratford reflect the nature of seasonal overnight demand, the dependency

on leisure and transient demand with limited corporate/commercial demand and the fact that many of the

smaller B&B operations tend to be open on a seasonal basis only. During the peak season months of June

through September, Stratford market occupancy levels are in the range of 65% to 70%.

In 2008, the market witnessed a 1% increase in occupied room nights, yet supply also increased by 4%,

leading to a year-end occupancy decline of 1 occupancy point from 29% to 28%. Occupied room nights

decreased considerably by 5% in 2009, and then declined again by just under 3% in 2010, yet occupancy

levels remained flat at about 27%, since available rooms decreased by 4% with the closure of the River

Garden Inn. With the balance of this hotel closure impacting the market in 2011, available rooms decreased

by a further 5%, but demand only dropped by 1%, leading to an annual occupancy of 28% in 2011.



Page 20

The average daily rates (ADR) for the Stratford accommodation market have seen minimal growth over the

last few years, ranging from a 1% decline in 2011 to 1% increase in 2010. From 2006 to 2010, the market

ADR has remained flat at $102. Overall room revenues have declined by over 7% or $1 Million,

demonstrating the significant impact of the 5% decline in occupied room nights combined with lack of

improvement to ADR levels.

3.5 Conclusions & Implications

Visitation levels to Perth County, which largely include visits to the City of Stratford, reached 1.3 Million

visitors in 2010, with 1-in-every 3 visitors staying overnight in the region, and the balance considered same-

day visits. While visitor volumes to the overall Province of Ontario have been flat over the past 5 years,

Perth County has undergone a 7% increase in visitation levels, improving from 1.19 million in 2006 to 1.27

million in 2010 – 80,300 more visitors. Overnight demand to Perth County, including those staying at

commercial accommodations as well as visiting friends and relatives, has increased by 14% over the past 5

years, in comparison to the Province which has seen a 1% improvement in overnight demand. At the same

time, over the past 5 years, it is estimated that overnight demand at commercial accommodations has

declined by 5%, and rooms revenues have declined by 7%. This fact suggests that growth in overnight

visits to the Stratford area may be derived from the visiting friends and relatives market.

Visitor spending in Stratford and Perth County has also increased by over 17% during the 5-year period, in

comparison to a 1% decline in visitor expenditures at the provincial level. This would seem to suggest that

since its inception in 2007, the marketing efforts of the STA with its objective of increasing overnight visitors

and the economic benefits to Stratford is working.

Another indicator of the value of tourism and its impact on the local Stratford economy is that of retail sales,

with per capita spends 39% above the National average. At the same, the average household income

amongst residents of Stratford was estimated at $76,000 for 2012, which is 5% below the National average.

This demonstrates the importance of non-resident spending to Stratford’s overall economy and in particular

to the retail sector.



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4.0 COMPARABLE DESTINATION MARKETING ORGANIZATION ANALYSIS

4.1 Introduction

As part of PKF’s evaluation of the current membership structure and fee/benefit offerings by the STA, an

analysis of comparable North American DMOs has been conducted. Specifically, the STA operating

structure and budget has been compared to a consolidated group of North American DMOs whose budgets

are between $1-$2 Million per year. The STA has also been compared with 4 individual DMOs that have a

major tourism focus on festivals and attractions, including: Ann Arbor, Michigan; Charlottesville, Virginia;

Banff Lake Louise, Alberta; and Branson, Missouri. In addition, an overview of DMF fees generated by

other Ontario destinations, prior to its elimination, has also been included.

The research has comprised a combination of primary and secondary research, based on data available in

the 2011 DMO Organizational & Financial Profile Study, produced by the Destination Marketing Association

International, a consolidated profile of 195 North American DMOs, and supplementary telephone interviews.

4.2 Funding Destination Marketing

In many areas of North America, provincial, state or regional hotel taxes help to fund important programs

that foster tourism and the marketing of the City or destination. The taxes can be determined or collected

in various forms including but not limited to:

A Dedicated Rooms Fee applied only to the accommodation sector and applied as a percentage

of the room rate or as a flat dollar per occupied room night. The room tax is remitted back to some governing agency potentially the municipality, province or state, or the hotel association of the tourism marketing agency itself.

Some jurisdictions have elected to implement a Dedicated Tourism Fee against all defined tourism

businesses, generally as a % of consumer expenditure. In some major fly in destinations, a Daily Levy is applied to each visitor on a per day basis. This is collected at the airport and collected upon departure. The levy is then distributed back to the Destination Marketing function for the City.

In some tourism destinations, a Commercial Levy has been charged to Businesses in the

community for the express purpose of tourism marketing. The levy is remitted back to some governing agency potentially the municipality, province or state, the Chamber of Commerce or the local Business Improvement Area.

4.3 Comparable North American DMO’s with $1-$2 Million Operating Budgets

The DMAI’s 2011 DMO Organizational and Financial Profile Study provides a breakdown of operating

budgets and sources of funding under the following 6 profiles, based on operating budgets of:

Less than $500,000 $0.5-$1.0 Million



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$1-$2 Million $2-$4 Million $5-$10 Million $10M and over

The comparable DMO set with an annual budget of $1-$2 Million is comprised of 30 DMOs, of which only 2

are Canadian (Saint John, NB and St. John’s, NL). The comparable DMO set has an average annual

operating budget of $1.5 Million, which is 25% higher than STA’s budget of $1.2 Million.

It is important to note that due to the high proportion of American DMOs in the comparable DMO set, the

implications of the findings are not directly comparable to the STA. This is due to the fact that in the United

States, municipalities have direct taxing powers on retail sales, whereas in Canada they do not have this

authority, with the governance of municipal taxation limited to property taxes. Hotel and related taxes are an

important source of revenue in over 80% of DMOs in the United States. Room taxes collected by US

municipalities tend to get reallocated back to the DMO to undertake specific agreed upon marketing duties,

with a portion of the tax also going towards the construction and operation of municipal infrastructure,

including sports facilities and Convention Centres.

Exhibit 4-1 summarizes the STA’s operating budget in 2010 in comparison to the DMAI composite set of

DMOs with an annual budget of $1-$2 Million, as well as the three individual comparable DMOs.

Based on the study conducted by DMAI, the comparable DMO set received 88% of funding from public sources (average $1.3 Million), and 12% from private sources (average $175,000). In these cases, the

hotel room levy is viewed as a public sector source, since it is collected through the municipal tax system

and then allocated back to the DMO. In comparison, the STA’s budget model received 66% of its funds from public sources and 34% from private sources.

As shown in Table 4-1, the comparable set received an estimated 75% of its operating budget through hotel room taxes, compared to STA at 25% of its 2012 operating budget provided through the Province’s DMF transitional funds.



Page 23

TABLE 4-1 2010 OPERATING BUDGET ALLOCATION – PUBLIC SECTOR SOURCES

Budget Allocations Comparable DMOs $1-2 Million Budget

STA

Hotel Room Levy 75% 25% Assessments 46% 0% Special Restaurant Levy 61% 0% Sales Tax 13% 0% Other City Tax Funds 71% 0% County/Municipal Funding 2% 29% State/Province Tax Funds 15% 12% Donated (Non-Cash) Products & Services 5% 0% Other Public Funding 4% 0% Total Public Sector Funds as % of Operating Budget 88% 66% Source: DMAI 2011 DMO Organizational & Financial Profile Note: The data reported for each line is based on all responses other than zero and the number of respondents varies from line to line. As such, the sum of the values on each line will not add up to the total line.

The comparable DMO set received 12% of their operating funds from the private sector, as compared

to 34% for the STA. Table 4-2 shows the breakdown of private sector funding, which sources from

membership dues at 7.5% of revenues, followed by publication sales at 6%. Other key sources of funding

include print revenue and cooperative advertising, each contributing 5% of operating revenues for the

organizations. In comparison, STA’s largest private sector revenue generating stream is event hosting at

15% for the Savour Stratford Festival, followed by co-operative advertising for the Map, Culinary and Events

Guides and promotional partnerships with the City Centre Committee at 9%; and membership dues at 7%.

TABLE 4-2

2010 OPERATING BUDGET ALLOCATION – PRIVATE SECTOR SOURCES

Budget Allocations Comparable DMOs $1-2 Million Budget

STA

Membership Dues 8% 7% Corporate Sponsorships 1% 0% Building Revenue 1% 0% Print Revenue 5% 0% DMO Website Advertising/Links 1% 0% Cooperative Advertising/Promotional Participation 5% 9% Event Hosting 2% 15% Publication Sales 6% 0% Donated (Non-Cash) Products & Services 2% 0% E-Commerce <1% 0% Other 4% 3% Total Private Sector Funds as % of Operating Budget 12% 34% Source: DMAI 2011 DMO Organizational & Financial Profile



Page 24

While the comparable DMO set relies heavily on Room Taxes as a source of their operating funds, other

tourist levies are placed on visitor spending as well. The comparable DMO set also applies a 2% levy on restaurant bills, and 9% levy on car rental sales. The STA currently has no additional visitor tax levy,

and has not applied any other commercial–based tourist levies in the past.

TABLE 4-3

OTHER TYPES OF VISITOR TAX/LEVY REVENUE

Commercial Sales Levy $1-2 Million Budget

STA

Restaurant 2% 0% Car Rental 9% 0% Attractions 0% 0% Retail 0% 0%

Source: DMAI 2011 DMO Organizational & Financial Profile

According to the DMAI study, the average number of members within the comparable DMO is 285 members. Attractions/cultural institutions make up the largest portion of these members with 23% of

total membership, followed by accommodations with 19% of total membership. Table 4-4 outlines the

representation of all member categories for the comparable DMO set, in comparison to the STA

membership breakdown. STA membership is higher amongst the retail and accommodation sectors, in

comparison to the DMO set, and lower amongst the Event sector, and comparable in terms of Restaurant

membership.

TABLE 4-4

COMPARABLE DMO MEMBERSHIP COMPOSITION

Industry $1-2 Million Budget

STA

Accommodations 19% 26% Restaurants 17% 17% Retail Establishments 13% 26% Event Services/Suppliers 14% 6% Attractions/Cultural Institutions 23% 23% Other 14% 2% Total 100% 100% Average Number of Members 285 251 Source: DMAI 2011 DMO Organizational & Financial Profile



Page 25

TABLE 4-5 BANFF LAKE LOUISE DMO OVERVIEW

DMO Revenue & Operating Budget – 2010 Total Funding from Public Sources $0 Total Funding from Private Sources $6.6M

Membership Dues/DMF 90% Cooperative Advertising 8% Event Hosting 2%

Total Funding/Revenue $6.6M Total Expenses $6.5M

Other Sources of Visitor Tax/Levy Revenue Commercial Sales Levy %

Accommodations 2% DMO TIF 4% Provincial DMF

Restaurant 0% Car Rental 5% Attractions 0% Retail 0.0%

4.4 Comparable Destination DMOs

The following sections provide examples of best practices for membership fee structure and revenue-

generating strategies at 4 comparable DMOs, including: Banff Lake Louise, Alberta; Ann Arbor, Michigan;

Charlottesville, Virginia and Branson, Missouri. The locations have been chosen based on their propensity

for cultural-based attractions and festivals.

4.4.1 Banff and Lake Louise, AB

Banff National Park is located in Alberta, a 90-minute drive west of Calgary International Airport. The park is

home to the Town of Banff and the Village of Lake Louise, with a permanent population of 11,000 residents.

Approximately 3.2 Million tourists visit Banff Lake Louise annually. Of these, 25% stem from the regional

market, 25% from the rest of Canada, 25% from the United States and the final 25% are international

visitors. An estimated 80% of the visitors

stay for 2 nights or more in the 6,000 hotel

rooms in the area. In addition to the National

Park, one of the major tourism demand

generators in Banff is the Banff Summer Arts

Festival. This event is an annual month-long

attraction which takes place at the Banff

Centre, showcasing jazz, orchestra and

chamber music concerts, opera,

contemporary and classical dance, visual

arts exhibitions, literary readings, mountain

films, and new media.

The Banff Lake Louise Destination

Marketing Organization has been in place

since 1992, with a mandate to attract year

Source: DMAI 2011 DMO Organizational & Financial Profile, PKF Interview

round destination visitors from the leisure, conference, meeting and incentive travel markets and to direct

that business to member companies and organizations. It is a private non-profit cooperative destination

marketing organization (DMO) for the Town of Banff, Lake Louise and Banff National Park, representing

over 800 members. The overall annual budget is approximately $6.5 Million and is fully funded from private

sources, with 90% of the revenue stemming from membership fees and a DMF on hotel rooms and the

remainder from cooperative advertising. The DMO implements a 2% voluntary Tourism Improvement Fee



Page 26

on hotel bills. In addition, the provincial government imposes a 4% rooms levy. The 5% GST is applied to

the hotel room bill pre-tax, as well as on the 2% Tourism Improvement Fee. Within Banff Lake Louise, a 5%

tax on car rentals is also applied to receipts.

Banff Lake Louise DMO members are categorized in different sectors. Accommodations are grouped

together, but other businesses have several sub-sectors. For instance, some members are categorized by

the number of employees, while others are categorized by the number of vehicles operated. If a certain

member does not fit well into a single sector, the CVB committee votes on its sector (i.e. Banff Lake Louise

has one golf course, and its membership sector was voted on by the committee). The core services offered

to members include being listed on the Banff Lake Louise Website, the ability to partake in industry events

at no fee for each sector. The pay-to-play options available to members include print advertising for a fee

between $500 and $1,000, trade show participation and sponsoring large events.

4.4.2 Ann Arbor, MI

Ann Arbor is a city in the US state of Michigan with a population of approximately 130,000. It is also home to

the University of Michigan, which employs about 30,000 workers. Annually, over 4.5 Million tourists visit Ann

Arbor and stay within the 4,000 hotel rooms.

Many Ann Arbor cultural attractions and events are sponsored by the University of Michigan. Several

performing arts groups and facilities are on the university's campus, as are museums dedicated to art,

archaeology, and natural history and sciences. Founded in 1879, the University Musical Society is an

independent performing arts organization that presents over 60 events each year, bringing international

artists in music, dance, and theater. Regional and local performing arts groups not associated with the

University include the Ann Arbor Civic Theatre, the Arbor Opera Theater, the Ann Arbor Symphony

Orchestra, the Ann Arbor Ballet Theater, the Ann Arbor Civic Ballet, The Ark, and Performance Network

Theatre. The Ann Arbor Summer Festival is a celebration of performing arts, outdoor entertainment and

community spirit. The three week event offers performances, exhibitions and parties with a common theme

of theater, film, visual arts. The annual production cost of this Festival is approximately $1.4 Million, with

revenues generated through ticket and beverage sales covering an estimated 60% of total expenses.

Support from corporate sponsors, foundations, government agencies, and individual donors makes up the

balance.

Founded in 1974 as a private non-profit organization, the Ann Arbor Area CVB (AAACVB) currently has 300

members. Table 4-6 shows that the CVB has an estimated $2.6 Million budget, funded 92% by public

sources through a hotel room tax levy. This 5% levy is collected by the Washtenaw County, which keeps



Page 27

10% of the revenue for administration. The Ann Arbor CVB receives 75% of the remaining amount, and

25% of the collection is given to another CVB located in the County. The 5% hotel tax is mandatory under

State enabling legislation Public Act 263, in which a County with population less than 600,000 but with a

City Center with a population of 40,000 can collect up to 5% excise tax on all hotel rooms sold within the

County. Additionally, a 6% tax on car rentals is implemented by the County, but not transferred to the

AAACVB.

TABLE 4-6

ANN ARBOR CVB OVERVIEW DMO Revenue & Operating Budget – 2010 Total Funding from Public Sources $2.4M

Hotel Rooms Levy 100% Total Funding from Private Sources $0.21M

Print Revenue 41% Cooperative Advertising 33% Membership Dues 15%

Total Funding/Revenue $2.6M Total Expenses $2.6M Other Sources of Visitor Tax/Levy Revenue Commercial Sales Levy % Accommodations 5% Restaurant 0% Car Rental 6% Attractions 0% Retail 0%

Source: DMAI 2011 DMO Organizational & Financial Profile, PKF Interview

Members within this CVB are categorized in sub-sectors with different rate categories. Hotels, motels and

bed & breakfast establishments are charged an annual $125 flat fee, while all other members are charged

$100 per year. Individuals may join by paying a $75 flat annual fee. The AAACVB has minimal member

services in order to keep membership fees at a low rate. The basic services include a listing in the online

membership directory; access to the convention calendar updated bi-annually; invitations to all annual

events and an e-newsletter. “Pay-to-play” marketing opportunities include Visitor Guide advertising, website

advertising and participation in tradeshows. The CVB sells approximately $100,000 in print ads in their

annual Visitors Guide. All available website tile ads are priced at $3,000 per advertisement.

4.4.3 Charlottesville Albemarle Convention & Visitors Bureau, Virginia

The Greater Charlottesville Region offers visitors a thriving community of arts and culture based on

innovation and traditions, juxtaposing urban and rural attractions. The City of Charlottesville has a



Page 28

population of approximately 40,000 people, not including the influx of 20,000 University of Virginia students

that arrive every fall. Annually, approximately 500,000 theatre goers visit Charlottesville and the area offers

3,000 hotel rooms. Since 1974, the Heritage Theater Festival has been in residence during the summer

months as the Department of Drama’s and the University’s professional repertory theatre. Recent

productions include Sweeny Todd, To Kill a Mockingbird, Guys and Dolls and West Side Story. The town is

also involved in sporting events and art and music festivals.

The CACVB was established in 1979, but in 2004, a new operating agreement was approved by the

Charlottesville City Council and the Albemarle Board of Supervisors. A Regional Tourism Council was

eliminated, and the funding formula was changed to reflect that the CACVB would be funded from 30% of

Charlottesville and Albemarle County's annual transient occupancy taxes. As shown in Table 4-7, the CVB

is a municipal entity, with an estimated $1.2 Million budget. This budget is almost fully funded by a 5% hotel

room tax levy, which is mandatory for all hotels within the City and Counties. The City also imposes a 4%

tax on restaurant bills and a 3.6% car rental tax. However, these additional revenues are not directly

allocated to the CVB’s annual budget.

TABLE 4-7

CHARLOTESVILLE CVB OVERVIEW DMO Revenue & Operating Budget - 2010 Total Funding from Public Sources $1.25M

Hotel Room Levy 100% Total Funding from Private Sources $0.1M

DMO Website Advertising/Links 50% E-Commerce 38% Cooperative Advertising 12%

Total Funding/Revenue $1.3M Total Expenses $0.97M Other Sources of Visitor Tax/Levy Revenue Commercial Sales Levy %

Accommodations 5% Restaurant 4% Car Rental 3.6% Attractions 0%

Retail 0% Source: DMAI 2011 DMO Organizational & Financial Profile, PKF Interview

The Charlottesville Albemarle Convention & Visitors Bureau does not work with a membership structure. All

listed companies within Charlottesville are notionally members, and therefore there is no revenue generated

from membership fees. Businesses can however pay for additional services that the CVB provides, such as



Page 29

a booth at a trade show, cooperative advertising, and website links. These additional services only account

for 1% of the CVB’s revenue.

4.4.4 Branson Lakes Area, Missouri

In 1991, Branson, Missouri had a population of 2,800 residents and 10,000 regionally, and offered a few

theatres and 15 shows per year, attracting an estimated 3 Million visitors annually. In 1992, the CBS News

show, 60 Minutes, ran a feature on the quaint town nestled in the Ozark Mountains highlighting its affordable

wholesome family entertainment, which resulted in 1 Million additional tourists the following year. Today,

Branson has a population of 10,000 residents (40,000 in Greater Branson Area) and is known as the “Live

Music Show Capital of the World”, offering more than 45 live performance theatres offering 60,000 seats

(more than Broadway), 3 lakes, 12 championship golf courses, 2 major theme parks, an historic downtown

district, 18,000 hotel rooms, RV parks, campgrounds and meeting and conference facilities.

During the early 1990’s, the Branson Chamber of Commerce and Visitor and Convention Bureau was

underfunded. As such, the City of Branson implemented a 4% tax on hotels and theatre performance

revenues and a 7/8% tax on restaurant receipts amongst businesses within the city boundaries. The City

Tourism Tax generated $10 Million, with 75% of the funds directed at infrastructure and 25% to destination

marketing efforts. This initially generated $2.5 Million in destination marketing funds, which increased to

approximately $3 to $3.5 Million by 2005, as tourism demand grew. In 2005, the Greater Branson Area

extended the boundaries and implemented a Regional Tourism Levy of 1% retail tax over a 2 County area,

which includes Silver Dollar City, a major theme park attracting 2 Million visitors annually, as well as

additional attractions. theatres and hotel rooms. The Regional Tourism Levy has provided a further $10

Million, all of which is devoted to marketing Branson as a tourism destination. Since 2006, the first year

following the collection of the Regional Tourism Levy and its implementation, Branson’s visitation levels

have almost tripled to over 8 Million visitors. With the economic recession, visitation levels eroded by 7% in

2009, rebounded by 3% in 2010 and were down by 5% in 2011, but have made some improvements in

2012. Marketing efforts have been directed at replacing the aging theatre market and those that are no

longer coming to Branson, with 1st time visitors (defined as visitors who have not been to Branson in the past 5 years). Based on visitor research undertaken by the DMO, the destination has seen a 25%

improvement in 1st time visitors and the length of stay has been extended to 2.5 nights. Approximately 80% of the DMO’s budget is directed at marketing efforts, with 20% being administrative costs.

EXHIBIT 4-1 DESTINATION MARKETING ORGANIZATION FUNDING / MEMBERSHIP PROFILE

DMO/CVB

STRATFORD

CONSOLIDATED

ANN ARBOR

BANFF LAKE LOUISE

CHARLOTTESVILLE

Budget Number in Sample

Budget = $1.2M n=1

Budget: $1-2M n=30

Budget: $2-5M n=1

Budget: $5-10M n=1

Budget: $1-2M n=1

DMO Revenue & Operating Budget - 2010 Total Funding from Public Sources Total Funding from Private Sources Total Funding/Revenue Total Expenses

$ 811,668 $ 418,132 $ 1,229,800 $ 1,217,680

$ 1,312,886 $ 174,498 $ 1,512,697 $ 1,504,027

$ 2,400,310 $ 208,723 $ 2,609,033 $ 2,602,823

$ - $ 6,585,684 $ 6,585,684 $ 6,525,539

$ 1,250,293 $ 10,083 $ 1,260,376 $ 968,830

Membership # of Due-Paying Members % of Members Represented by:

Accommodations Restaurants

Retail Establishments Event Services/Suppliers

Attractions/Cultural Institutions Other

251

26% 17% 26% 6%

23% 2%

285

19% 17% 13% 14% 23% 14%

240

18% 12% 11% 11% 48%

0%

800

70% 8% 8% 4% 5% 5%

N/A

70% 8% 8% 4% 5% 5%

Total 100% 100% 100% 100% 100%

Total Taxes and Assessments on a Hotel Room Room Levy - City % Room Levy - State/Province % Sales Tax - City % Sales Tax - State/Province % Sales Tax - National % Tourism District/Marketing District/Local Lodging Assessment - % Total Tax on a Hotel Room - %

0% (Formerly 3%)

0.0% 0.0%

13.0% 0.0% 0.0%

3.6% 5.4% 1.9% 5.8%

13.0% 1.8%

12.2%

5.0% 0.0% 0.0% 6.0% 0.0% 0.0%

11.0%

2.0% 4.0% 0.0% 0.0% 5.0% 0.0%

11.0%

5.0% 5.0% 0.0% 0.0% 0.0% 0.0%

10.0%

Other Sources of Visitor Tax/Levy Revenue: Commercial Sales Levy - %

Restaurant Car Rental Attractions

Retail

0.0% 0.0% 0.0% 0.0%

2.0% 8.9% 0.0% 0.0%

0.0% 6.0% 0.0% 0.0%

0.0% 5.0% 0.0% 0.0%

4.0% 3.6% 0.0% 0.0%

2010 Operating Budget Allocations - Public Sector Sources: Hotel Room Levy

County/Municipal Funding State/Province Tax Funds

25.0% 29.0% 12.0%

74.7%

92.0%

99.2%

Total Public Sector Funds as % of Operating Budget 66.0% 88.4% 92.0% 0.0% 99.2%

2010 Operating Budget Allocations - Private Sector Sources:

Membership Dues Print Revenue

DMO Website Advertising/Links E-Commerce

Cooperative Advertising/Promotional Participation Event Hosting

Other

7.0%

9.0% 15.0% 3.0%

7.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

1.2% 3.3% 0.5% 0.0% 2.6% 0.5% 0.1%

89.6% 0.0% 0.0% 0.0% 7.8% 2.3% 0.3%

0.0% 0.0% 0.4% 0.3% 0.1% 0.0% 0.0%

Total Private Sector Funds as % of Operating Budget 34.0% 11.6% 8.0% 100.0% 0.8%

Is the DMF Voluntary or Mandatory? Voluntary 0 0 Yes in Baff / No Outside Town

Mandatory

4.5 Comparable Ontario DMOs

Previous to the July 2010 change in the DMF structure, there were 14 DMOs operating in the Province of

Ontario. For comparison purposes, Table 4-8 provides the room inventory and estimated DMF earnings

generated by a voluntary 3% rooms levy for 12 of 14 DMOs. On average, the 3% DMF generated $660 per

room amongst Ontario destinations in 2009, approximately 2.2 times the level achieved by accommodations

in Stratford.

TABLE 4-8

ESTIMATED DMF REVENUES BY ONTARIO DMO'S - 2009

DMO Room Inventory

Estimated DMF Earnings

Per Room

1 Ottawa 10,000 $7,500,000 $750 2 Toronto 40,000 $29,000,000 $730 3 SSM 1,000 $640,000 $640 4 St. Catherines 780 $500,000 $640 5 Blue Mountain 1,200 $670,000 $560 6 Kingston 2,100 $1,000,000 $480 7 Burlington 1,200 $500,000 $420 8 Gananoque 730 $250,000 $340 9 STRATFORD* 860 $255,000 $295

10 Kenora 500 $100,000 $200 11 Hamilton 1,800 $250,000 $140 12 Cornwall 1,400 $200,000 $140

TOTAL 61,510 $40,865,000 $660 * NOTE: Stratford Room Inventory based on hotels & motels, excluding B&B's Source: PKF and Ontario Ministry of Tourism & Culture

In addition to the revenue generated by the 3% hotel room tax, Tourism Kingston received a 10%

commission on all ticket sales for attractions sold at the Visitor Information Centre. It continues to do so post

the elimination of the DMF. In 2009, this generated an additional $39,000 that was allocated directly to the

marketing budget.

The 1000 Islands Gananoque DMO also generated $85,000 in additional funding through a levy charged

on ticket sales for the 1000 Islands boat cruises.

The Blue Mountain Village Association (BMVA) differs from other DMOs because of the Resort Area’s

formation as a legal entity, which has been granted provincial taxing powers to collect royalties and

assessment fees on all commercial / residential buildings and commercial transactions which take place

within the resort area. As such, the BMVA is financed through members’ contributions and a 3% royalty on

rooms and 2% on all commercial sales, with a portion of the fees generated allocated for marketing efforts.

4.6 Implications for Potential Revenue-Generating Strategies

Because of the nature of how DMF fees are collected on hotel rooms, car rentals, restaurants, and

attractions, they tend to be viewed as public sector sources amongst US destinations since they are derived

through sales tax rates; versus as private sector sources amongst Canadian destinations because the funds

tend to be generated through voluntary-based levies applied to hotel rooms. American cities have a much

more extensive history of applying room taxes as a method of generating marketing dollars than Canada,

primarily because of their ability to set their own sales tax rates at the municipal level rather than at the state

level. Politicians tend to prefer increasing rooms tax because it is more likely to be popular with the local

population than increasing other taxes.

The comparable DMO set of 28 US and 2 Canadian organizations derives approximately 75% of its

operating funds from hotel tax, while the STA has historically collected 25% of its operating revenues from a

voluntary 3% rooms levy and the subsequent replacement of these revenues by a Provincial Transitional

fund, which expires at the end of 2012.

According to the DMAI study, the average number of members within the comparable DMO is 285

members. At 251 members, STA membership is higher amongst the retail and accommodation sectors, in

comparison to the DMO set, and lower amongst the Event sector, and comparable in terms of Restaurant

membership.

Previous to the July 2010 change in the DMF structure, there were 14 DMOs operating in the Province of

Ontario. On average, the 3% DMF generated $660 per room amongst Ontario destinations in 2009 prior to

its elimination, which was approximately 2.3 times the level achieved by the 3% rooms tax applied to two-

thirds of the room inventory in Stratford ($290 per room).

Up until 2010, only 3 Ontario destinations were also applying a voluntary tourism levy to sectors other than

accommodations, including: 1000 Islands Gananoque which generated $85,000 through a levy charged on

boat cruise ticket sales; Tourism Kingston on attraction ticket sales; and Blue Mountain Village Resort

Association which has been granted provincial taxing powers to collect royalties and assessment fees on all

commercial / residential buildings and commercial transactions which take place within the resort area.

When membership fees are applicable, benefits most often include the members’ presence on the

DMO/CVB website and a listing within the business inventory. Print advertising is often an added benefit,

with representation at trade shows and exhibitions considered to be above the Core services.

5.0 STA MEMBER SURVEY RESULTS

5.1 Introduction

PKF Consulting developed a questionnaire for distribution to STA members to generate feedback on

member and partner satisfaction with business and marketing strategies, and to identify strengths and

weaknesses of existing STA membership, programs and fee structures, and determine opportunities for

future improvements. After incorporating feedback from the STA Board members and Project Advisory

Committee, the questionnaire was distributed via weblink to all 251 STA members. A total of 78 members

started the survey over the June 10th to June 18th period, and 62 respondents fully completed the survey.

Once the data was collected, the analysis included the development of group profiles from the responses

based on their existing STA Membership category. All data were filtered based on the following 5 groups:

Accommodation Members Attraction/Event Members Food Producer Members Restaurant Members Retail Members

It should be noted that only 1 Destination/Association member responded to the survey. Due to the limited

sample size and to maintain confidentiality, a separate profile has not been created for this respondent, but

the response data has been included into an aggregate All Respondents category.

In analyzing the survey, PKF focused on the following areas:

Respondent Group Overview STA Membership Fee Structure Potential DMF Funding Mix Evaluation of STA as a DMO Existing Membership Services & Benefits Potential Membership Services & Benefits Other Suggestions for STA Funding & Strategic Direction

The survey is analyzed on the following pages, with a copy of the survey itself, as it was distributed via the

SurveyMonkey program, provided in Appendix A.

5.2 Respondent Group Overview

The first section of the survey was focused on identifying the STA member groups and subsequent

respondent profiles. Table 5-1 shows the breakdown of member responses by category and the

representation by each type of member group. As shown, there were 76 responses to the survey, including

two properties that have both Accommodation and Restaurant memberships, thereby representing a total of

78 members or 31% of overall STA memberships.

TABLE 5-1

STA MEMBER RESPONDENTS BY CATEGORY (N=76) STA Member Category

Total Members

Member Responses

% Responded

Accommodation Attraction/Event Food Producer Restaurant/Culinary Retail Destination/Association

65 57 15 43 66 5

30 12 6 8

21 1

46% 21% 40% 19% 32% 20%

TOTAL 251 78 31% Source: PKF Consulting, STA Member Survey Results 2012

Within each membership category, the highest member representation derived from the Accommodations sub-segment at 46%, followed by Food Producers at 40%. As previously noted, the

Destination/Association sample was too small to extract as an individual respondent category.

Businesses and organizations represented in the survey sample have been operating over an extensive

period of up to 150 years, with a median opening year of 1995 (average 17 years in business). Respondent

members indicated that they have been with their current business/organization in the same Stratford area

location for 1-40 years (1972-2011).

An estimated 71% of respondent businesses/organizations are open year-round, while 29% indicated they

are seasonal operations open typically from April through October. Furthermore, the typical

business/organization represented in the survey employed an average of 9 full-time, 8 part-time and 6

seasonal/contract staff.

Table 5-2 provides a breakdown of member categories represented in the survey with respect to size. As

shown, there was a healthy range of small and medium-sized businesses that participated and provided

feedback. Although not included in this chart, the scope of Food Producer categories included: dairy, meat

sales, organic products and baked goods.

TABLE 5-2 SIZE/SCOPE OF STA MEMBER BUSINESS/ORGANIZATION (N=76) Member Category Category of Size Minimum Maximum Average Accommodation (n=30) Total Guest Rooms 2 144 12 Attraction/Event (n=8) Annual Attendees 50 150,000 26,875 Restaurant/Culinary (n=8) Total Permanent Seats 50 240 132 Retail Total Square Footage 400 2,500 1,335

Source: PKF Consulting, STA Member Survey Results 2012

Within the Restaurant/Culinary category, 100% of respondents indicated that their property was licensed.

Furthermore, 33% of Accommodation members paid Volume-based dues, while 67% paid Fee-based dues.

5.3 STA Membership Fee Structure

Respondents were asked to consider the value of the existing STA Membership fee structure and

opportunities for modification. STA leadership expressed concerned about a perceived “inequitable”

membership structure, established by different levels of fees and customization by sub-sector.

Overall, 70% of respondents indicated that

they found the STA membership fees

structure to be “equitable”, as compared to

30% who found it to be “inequitable”. This

data indicates that the majority of STA

members accept the way membership

categories have been formed and fees

allocated. Of those who found the fee

structure inequitable, 81% indicated that

benefits or levels of fees are better for

some sub-sectors than others, and 19%

suggested that there were too many levels of fees and/or benefits.

The following section provides some feedback on the individual member category responses. As shown in

Table 5-3, the respondent categories identifying the most perceived inequality in the STA membership

structure were Attraction/Event and Restaurant/Culinary members.

TABLE 5-3 STA MEMBERSHIP FEE STRUCTURE - SECTORAL FEEDBACK (N=70) Member Category

Equitable

Inequitable - Too many fee/benefit levels

Inequitable - Favours one or more sectors

Accommodation (n=28) 64% 7% 29% Attraction/Event (n=8) 58% 8% 33% Food Producer (n=5) 80% 0% 20% Restaurant/Culinary (n=6) 50% 17% 33% Retail (n=20) 90% 0% 10% All Respondents (n=70) 70% 6% 24%


In general, those who responded that STA has an equitable membership structure believe that they are

getting good value in terms of promotion, that the STA visitor guides and online directories are very good at

reaching their target markets, and that the core member benefits offered are both needed and wanted.

The following is a list of the most frequently cited reasons as to why STA membership structure is perceived

as being inequitable:

Favoritism towards the accommodation and culinary sub-sectors with respect to benefits; Fees for B&B operators are either too low or too high as compared to motels/hotels; Culinary members get premium marketing and generate more business during Festival season, but

pay less than many accommodators; Accommodators appear to pay the majority of fees; Retailers are not always being adequately represented through the benefit structure – STA needs to

canvas these members to determine what they need; and Out of town members are provided with the same benefits as in town members.

Respondents were asked to comment on opportunities to improve the STA’s fee structure based on

selection criteria. Table 5-4 demonstrates the range of criteria selected by All Respondents.

TABLE 5-4

TOP CRITERIA FOR MEMBERSHIP FEE DETERMINATION (N=65)

Size of Business 51%

Basic Membership plus Fee for Service 46%

Industry Sector/Type of Business 40%

Loyalty (Renewals) 37%

Geography 12%

Other 14% Source: PKF Consulting, STA Member Survey Results 2012

As shown, over half of respondents (51%) indicated that size of business should be a factor in determining

membership fees; 46% believed there should be one basic membership fee by category plus fee for service;

40% indicated industry sector/type of business should be charged different fees; and only 12% identified

geography (i.e. location of the business) as a potential factor for fee structure determination. Almost one-in-

four (37%) respondents felt loyalty should continue to be considered when determining fees, which speaks

to an opportunity for STA to maintain one fee level year-over-year without discounting for renewals.

Other criteria that were suggested included providing: a fee structure based on full-year vs. seasonal

operators, or based on non-profit vs. for profit businesses; or for each business to be able to choose the

criteria that best suited the membership they wanted.

When asked whether STA members located outside Perth County should be charged more than other

member businesses/organizations, the answers were split almost evenly. An estimated 54% of respondents suggested that members outside of Perth County should pay more (see Figure 5-2).

There appears to be some concern over

members from outside Perth County

“double-dipping” by being members of other

associations, and getting free benefits that

could be benefitting more Stratford-based

members, while being exempt from

Municipal business fees. However, it was

also identified that some of these out-of-town

respondents do not have tourism

representative outside the STA. There was a

suggestion that the scope of the STA’s

mandate needs to be better defined in terms

of geography. Also, the suggestion was made that an alternative for charging more of members located outside Perth County could be to provide them with fewer benefits.

5.4 Potential DMF Funding Mix

The next part of the survey focused on the future funding

mix for the STA. To begin, respondents were asked

whether or not they would agree to a DMF being applied

to visitors staying overnight in member accommodations,

as was the funding set-up prior to June 2010. Just over one-quarter (26%) of respondents agreed to the

same DMF structure being applied and 74% disagreed with re-implementation of an accommodation- based DMF.

Table 5-5 shows the breakdown of interest in re-implementing a rooms-based DMF by current STA member

category. Accommodators themselves were unevenly split on this issue, with less than one-third (32%)

agreeing to a potential DMF on rooms. It should be noted that the survey sample included the results of 28

members representing 215 rooms (21 B&B’s and 7 motel/hotels), which accounts for 43% of STA

Accommodation members or 29% of Member room supply, and 23% of all properties or 18% of the overall Stratford accommodation room supply.

As shown, the only category wherein the majority of respondents (66%) were in favour of the DMF on

accommodations was that of Restaurant members.

TABLE 5-5 POTENTIAL DMF FUNDING FOR STA VIA ROOMS LEVY Member Category YES NO Accommodation (n=28) 32% 68% Attraction/Event (n=12) 25% 75% Food Producer (n=5) 0% 100% Restaurant/Culinary (n=6) 66% 33% Retail (n=20) 20% 80% All Respondents (n=70) 26% 74%


Respondents were further asked to identify whether the DMF could be expanded to include other

commercially-based tourism operations, and if so, which ones. Of the 19 respondents who answered this

question:

95% felt the DMF could include Stratford Festival ticket sales2

79% felt the DMF could include other Attraction/Event sales 63% felt the DMF could include Restaurant sales 53% felt the DMF could include Retail sales

Some respondents voiced a concern that it might be difficult for restaurants and retail operators to

differentiate between locals and tourists if implementing a levy. Others indicated concern that funding

initiatives might make visiting Stratford less attractive to visitors. It also should be noted that some

respondents appear to be confused over the definition of a Destination Marketing Fee.

2 Note: Stratford Festival did not respond to the STA Membership Survey

When asked what potential DMF funding initiatives might work for Stratford, respondents noted the following

opportunities:

Additional levies on anything “Shakespearean” in the area, i.e. outdoor theatre and dinner theatre, jousting, etc.;

Developing a specific attraction for the tourist season (i.e. Horse Carousel on river) and giving all the revenue back to STA for tourism marketing;

Implementing a parking levy; Applying a levy on all tourism festivals, music festivals and other and events in the STA region

where an entrance fee or ticket is charged; and Applying a levy on events coordinated/advertised via STA, such as culinary events, etc.

Other non-tourist funding suggestions included:

Merging Perth County Visitors Association (PCVA) and City Centre Committee with STA to increase funding and focus;

Increasing funding from the City of Stratford; and Reducing office and operating costs of the STA.

5.5 Evaluation of STA as a DMO

Closely tied to fee structure is the issue of value, and what services and benefits provide the most intrinsic

worth to membership in an organization like the STA. As such, the next section of the survey focused on

evaluating STA’s value as a destination marketing organization (DMO).

Respondents were asked to list their top 3 reasons for joining the STA, and a wide variety of responses

were provided. Consequently, PKF chose to focus on the top or primary reason, and responses were

filtered into 8 major categories, as described in Table 5-6.

TABLE 5-6

PRIMARY REASON FOR JOINING THE STA (N=48) Reason % of Responses Advertising/Marketing/Promotion 44% Leadership & Business Support of STA 10% Online Exposure 10% Scope of Potential Customer Exposure 10% Support for Tourism in & around Stratford 8% Scope of Distribution Channels 6% Networking with Affiliate Businesses/Organizations 6% Business and Community Support 4% TOTAL 100%


As shown, 44% of respondents identified advertising, promotion or marketing support as the key

reason for joining the STA, whether for an individual event or entire business/organization. The next most

frequently cited reasons included: leadership and business support provided by the STA; online exposure

(including booking and reservation opportunities); and the scope of potential customer exposure (through

print, online and other media). About 8% of respondents see their membership as contributing to support

tourism to the area. Other key reasons include: STA’s scope of distribution channels; provision of

networking opportunities for affiliated businesses and organizations; and general business and community

support.

Respondents were further asked whether they have memberships with any other organizations, in order to

get a sense of the breadth of affiliations. Over 68% of respondents are part of at least one other

association. Table 5-7 shows the range of membership affiliations by response frequency.

TABLE 5-7

OTHER MEMBERSHIP AFFILIATIONS (N=52) Organization % of Responses Stratford and Area Bed and Breakfast Association 39% BBCanada 37% Perth County Visitors Association 37% Stratford and Area Chamber of Commerce 29% Canadian Federation of Independent Businesses 19% Stratford BIA 15% Federation of Ontario Bed and Breakfast Accommodation

6%

Ontario Restaurant, Hotel & Motel Association 6% Stratford Agricultural Society 2% Source: PKF Consulting, STA Member Survey Results 2012

As shown in the table above, two of the top 3 membership affiliations are directly related to small

accommodation operations - B&B’s. The next most frequently cited association was the Perth County

Visitors Association (PCVA) at 37% of all responses. The data confirms a general perceived value in

obtaining enhanced marketing, statistical and/or networking opportunities relevant to a particular geographic

area or industry segment.

With this data in mind, respondents were asked to evaluate STA’s performance since the organization was

formed in 2008. Performance categories were rated on a scale of 0-4, wherein “0” = Poor and “4” =

Excellent. Table 5-8 demonstrates the average rating according to each STA membership category. The

highest performance ratings have been highlighted for each member type.

TABLE 5-8

STA PERFORMANCE - AVERAGE RATING BY MEMBER CATEGORY (N=60)

Member Category Performance Category

Accommodator (n=27)

Attraction/Event (n=8)

Food Producer (n=5)

Restaurant (n=4)

Retail (n=17)

ALL RESPONDENTS

Strategic Approach - based on 3 C's (Character, Culture and Cuisine)

2.85

2.63

2.00

3.25

2.94

2.80

Marketing 3.15 2.63 2.00 3.50 2.53 2.82 Attracting Visitors 2.96 2.50 2.60 3.00 2.59 2.77 Event Development 2.96 2.50 3.00 3.25 2.76 2.85 Event Hosting 2.67 2.63 2.80 3.25 2.88 2.77 Member Services 2.85 2.38 1.60 3.25 2.76 2.68 Communication to members 2.93 2.50 1.80 3.50 2.94 2.82 Ability to measure Stratford's annual tourism performance

2.67

1.88

2.00

3.25

2.71

2.55


Overall, the top ratings were applied to the STA’s performance in the areas of: Event development, followed

by Marketing, and Communication to Members, with Restaurant members providing the highest ratings

overall. According to PKF’s evaluation of the data, areas of improvement for the STA lie in: Member

Services and the Ability to Measure Stratford’s annual tourism performance.

Some general feedback included praise for the STA’s overall proficiency with communication, but also some

concern over coordination of event scheduling. Other suggestions for increasing membership equity and

adding value to member businesses/organizations included the following:

Develop a membership category for community services; Base the fee on the size of the business; More focus on Sport Tourism; More focus/development in “off-season”; Improve attraction strategy for Retail members; Redefine the fee structure – it seems that the Accommodation sector carries the highest fees; B&Bs are not making much money, so fees should take that into consideration; Ensure that total fees are not excessive, and are fair in relation to revenue, and typical margins in

other sectors; Maintain as many options of membership as possible; Assure that all business are included in the spotlight and not a limited group; Offer discounted group advertising through social media sites; Free STA office window display for member businesses; Promote Greater Stratford Area vs. City Centre Core businesses; Basic membership plus fee for additional services; Treat all accommodators equally and with a similar fee structure; Do not be dependent on DMF as a funding mechanism; Ensure retail, restaurant, bars etc. pay more realistic membership fees for inclusion in STA

materials and website; Increase membership and fees in other sectors; Find a way to make the seasonal businesses membership fees more equitable in all sectors; Add fee-for-service ideas that allow member to pick and choose based on their budget, and desire

to participate in events; Develop more programs that attract visitors who will stay overnight; and Continue to enhance the online booking/reservation program.

5.6 Existing Membership Services & Benefits

With respect to meeting individual member business needs in relation to marketing and advertising, PKF

asked members to identify the most applicable distribution channels. Table 5-9 provides an indication of the

most applicable distribution channels by member category.

TABLE 5-9 MOST APPLICABLE FORMS OF MARKETING/ADVERTISING FOR STA MEMBERS (N=61)

Member Category Marketing/Advertising Channels

Accommodator (n=27)

Attraction/Event (n=10)

Food Producer (n=4)

Restaurant (n=4)

Retail (n=17)

ALL RESPONDENTS

Print media 56% 90% 75% 50% 82% 69%

Digital media 96% 70% 0% 100% 53% 74%

Social media 56% 80% 50% 100% 41% 57%

T V Broadcast 7% 10% 0% 0% 6% 7%

Radio 4% 50% 25% 25% 18% 18%

Live video/webcam 7% 10% 25% 0% 12% 10%


From an overall respondent perspective, 74% use digital media as a primary distribution channel, while

69% of respondents continue to rely on print advertising. Social media is much more prevalent than

TV, radio and live video as a means of marketing. Some respondents indicated that they look to the STA to

provide most of their marketing, and rely otherwise on word-of-mouth and signage. There is an

opportunity for the STA to develop and post live video footage for member businesses that lack the

relevant training or web access.

Member respondents were asked to evaluate their existing membership benefits, and whether or not they

would consider paying for them – which could provide an alternative means of providing additional funding

for the STA. The value of existing benefits was rated on a scale of 1 to 4, wherein “1” = no interest; “2” =

interested as a pay-to-play option; “3” = interested, as part of membership fee; and “4” = interested, as part

of an enhanced membership fee. Figure 5-4 provides an indication of the most intrinsically valuable benefits

for All Respondents.


As shown, the on-line searchable business directory with web links is the most valuable benefit that

the STA offers today. Over 82% of respondents want to maintain this benefit as part of their membership

fee, and a further 13% of respondents indicated that they would pay an increased membership fee to retain this benefit, for an overall rating of 3.0. Other highly-rated benefits included: listing in STA Guide

books (Culinary, Events, Heritage, Visitor's Map, etc.), micro-site page with live link to member website, and

promotional materials displayed at STA Visitor Centres. In general, benefits relating to promotion and

advertising generated the highest ratings. Those of least interest were the itinerary planning tool for

customers, and the link to an on-line booking or reservation system, as many respondents do not have a

need for this benefit.

Based on respondent feedback, the following “free” benefits could be considered the most likely for

conversion into “pay-to-play” options:

STA confidential marketing consultation and advice; Placing a badge on visitstratford.ca linking visitors to a member micro-site; Copies of the monthly calendar, posters and other printed STA materials; and On-line event listings.

Just over one-quarter (25%) of respondents participated in a “pay-to-play” initiative offered through

the STA during the past two years. Member categories with the highest propensity to use “pay-to-play”

initiatives were: Accommodation and Retail members, at 31% of responses respectively, as shown in Table

5-10.

TABLE 5-10

PARTICIPATED IN PAY-TO-PLAY INITIATIVES OVER PAST 2 YEARS (N=16)

Member Category % of Responses Accommodation 31% Attraction/Event 13% Food Producer 19% Restaurant 6% Retail 31% All Respondents 25% Source: PKF Consulting, STA Member Survey Results 2012

The most frequently cited initiatives were related to advertising and media exposure, including:

Extra advertising on STA monthly brochure; Advertising space on STA Tourist Map, Culinary Guide, etc; Advertising banners and badges on website; STA member delivery of member products to other target markets (i.e. Toronto); Stratford Tourism Alliance conference; Workshops/training, i.e. Social Media workshop; Tourism information packages; Victorian Christmas promotions; Advertising on Festival Playbill;

Advertising on the STA Tourist Map was mentioned as being particularly valuable to member businesses/organizations that are not located in the downtown core.

As an alternative to “pay-to-play”, about 3 in every 10 respondents have participated in an exchange of products and/or services for advertising and media exposure from the STA. Examples include the

following:

Hosting media at school dinners and receiving media coverage back from STA; Food products sold at cost for the Savour Stratford and other culinary events; Samples of goods at the STA office to generate public interest; Accommodation Packages; Discounted rooms for Savour Stratford; VIP bags; Coupon Discounts; Free window display; Free room nights for a fundraising draw; Packages and specials advertised through the STA; Provided complimentary accommodation for STA special guests, film crews, journalists, etc. in

exchange for media coverage;

Goods/services for Victorian Christmas Trail;

Most respondents indicated that they were satisfied with the results of these types of exchanges, but a

concern was voiced by some members that they are not given the tools to measure outcomes of the new web links, and that they have not receive feedback from the STA.

In general, 87% of respondents believe there are enough benefits to meet their respective STA

member business needs, as shown in Table 5-11.

TABLE 5-11 ENOUGH BENEFITS TO MEET YOUR STA MEMBER BUSINESS NEEDS? (N=60) Member Category YES NO Accommodation (n=26) 92% 8% Attraction/Event (n=10) 90% 10% Food Producer (n=5) 60% 40% Restaurant/Culinary (n=4) 100% 0% Retail (n=16) 81% 19% All Respondents 87% 13%


There was some discrepancy identified within the respective member categories. For instance, 100% of

Restaurant respondents felt there were enough benefits to meet their needs, while only 60% of Food

Producers were satisfied with their respective benefit choices. As previously noted, there is a

need/opportunity for the STA to work further with this member category.

5.7 Potential Membership Services & Benefits

The following section provides an analysis of potential membership benefits that could generate revenue for

the STA either through membership fees or via “pay-to-play” options.

Figure 5-5 provides detail on which benefits were of the most interest to respondents and to what extent,

based on a rating scale of 1-4, with the same parameters as the existing benefit analysis (“1” = no interest,

“4” = interested as part of an enhanced membership fee).


In terms of potential benefits, respondents gave the highest rating to those that provided access to larger

regional and/or Provincial initiatives relating to tourism. Overall, respondents indicated that they were most interested in gaining access to tourism-related research and statistics, and gave this benefit an overall

rating of 2.5, with over 64% of respondents would like this benefit as part of their membership fee.

Other highly-rated benefits included: Region-wide tourist information initiatives (other than materials); and

discounted memberships in other Provincial Tourism Organizations (i.e. Ontario Culinary Tourism Alliance,

CAA). Approximately 7% of respondents indicated that they would pay an increased membership fee to implement Industry FAM Tour opportunities. Those benefits of least interest were more specific to

STA-developed programs, such as Awards Dinners/fundraisers, other STA events, and participation in

programs/trips to attract investment.

STA members showed the most interest in the following potential benefits for “pay-to-play” options:

Industry FAM Tour Opportunities

Workshops on Tourism Skills and Development Group purchasing power, e.g., memberships in other organizations Group Insurance options Opportunities for professional education discounts

Other feedback from respondents relating to potential revenue-generation for the STA included

development of fun fundraiser events, such as the Perth County Pig Parade (competition, display &

auction), and helping to develop more outside attractions for the area.

The following popular member benefits that were once offered through the STA were identified for

consideration as part of an enhanced membership fee or pay-to-play options:

Free tickets to the Stratford Festival; Opportunity to set up a window display at the STA office – with a random draw, if there are too

many interested businesses; and Including non-STA members such as churches, service clubs, etc. on the Event calendar.

5.8 Conclusions & Implications

Overall, 70% of respondents indicated that they found the STA membership fees structure to be “equitable”. Of those who found the fee structure inequitable, 81% indicated that benefits or levels of fees

are better for some sub-sectors than others, and 19% suggested that there were too many levels of fees

and/or benefits.

The respondent categories identifying the most perceived inequality in the STA membership structure were

Attraction/Event and Restaurant/Culinary members. The most frequently cited reasons behind the

“inequality” were the perceived imbalance in the fee to benefit ratio for the Restaurant segment, and within the fee structure of the Accommodation segment.

Over half of respondents (51%) indicated that size of business should be a factor in determining

membership fees. An estimated 54% of respondents suggested that members outside of Perth County

should pay more than Stratford area members. The suggestion was made that an alternative for charging more of members located outside Perth County could be to provide them with fewer benefits.

About 74% disagreed with re-implementation of an accommodation-based DMF. Accommodators

themselves were unevenly split on this issue, with less than one-third (32%) agreeing to a potential DMF on

rooms. The only category wherein the majority of respondents (66%) were in favour of the DMF on

accommodations was that of Restaurant members. Of those respondents who were in favour:

95% felt the DMF could include Stratford Festival ticket sales 79% felt the DMF could include other Attraction/Event sales 63% felt the DMF could include Restaurant sales 53% felt the DMF could include Retail sales

Other potential means of generating funding for the STA included levies on: parking, tourism-specific attractions/events, and STA coordinated events (i.e. Savour Stratford). Further suggestions for

revenue-generation included: merging PVCA and Chamber of Commerce with STA to increase funding, and

potentially reducing operating costs at the STA office.

With respect to the STA’s overall performance, the top ratings were applied to the areas of: Event development, Marketing, and Communication to Members. Restaurant members provided the highest

ratings of all member categories. According to PKF’s evaluation of the data, areas of improvement for the

STA lie in: Member Services and the Ability to Measure Stratford’s annual tourism performance.

The on-line searchable business directory with web links is the most valuable benefit that the STA

offers today. Based on respondent feedback, the following “free” benefits could be considered the most

likely for conversion into “pay-to-play” options:

STA confidential marketing consultation and advice; Placing a badge on visitstratford.ca linking visitors to a member micro-site; Copies of the monthly calendar, posters and other printed STA materials; and On-line event listings.

Just over one-quarter (25%) of respondents participated in a “pay-to-play” initiative offered through

the STA during the past two years. The most frequently cited initiatives were related to advertising and

media exposure. Advertising on the STA Tourist Map was mentioned as being particularly valuable to member businesses/organizations that are not located in the downtown core.

As an alternative to “pay-to-play”, about 3 in every 10 respondents have participated in an exchange of products and/or services for advertising and media exposure from the STA. However, a concern was

voiced by some members that they are not given the tools to measure outcomes of the new web links, and that they have not receive feedback from the STA.

In terms of potential benefits, respondents gave the highest rating to those that provided access to larger

regional and/or Provincial initiatives relating to tourism. Overall, respondents indicated that they were most interested in gaining access to tourism-related research and statistics. STA members also showed

the most interest in the following potential benefits for “pay-to-play” options:

Industry FAM Tour Opportunities Workshops on Tourism Skills and Development Group purchasing power, e.g., memberships in other organizations Group Insurance options Opportunities for professional education discounts

In combination with the comparable DMO analysis presented in Section 4, the STA Member Survey has

provided very useful data with which to determine possible alternatives for sustainable revenue-generating

strategies for the STA.

6.0 STA BUSINESS MODEL ALTERNATIVES

6.1 STA Sustainable Funding Objective

In order to maintain the current level of services provided by the Stratford Tourism Alliance, management

and membership must look to some form of Revenue Enhancement or Operating Cost Rationalization in

order to replace the Provincial transitional funds of $300,000 per annum.

The potential for replacing these funds through an increased operating grant from the City of Stratford

and/or other regional or provincial funding bodies is not realistic in today’s environment. At the same time,

practically speaking, the ability to achieve the funding objective of $300,000 without re-implementing a DMF

will also be a challenge. In the absence of a DMF fund, STA will need to look at its core services and

membership fee structure in order to enhance revenues or alternatively look to potential operating costs

reductions.

6.2 Three Funding Alternatives

Based on the Phase I study findings, the following funding alternatives have been analyzed as part of the

Phase 2 study process:

1. Re-Introduce a DMF Fund

i. Dedicated Rooms Levy Alternatives ii. Other Levy Alternatives on Retail, Restaurants, Parking, Tickets, etc.

The ability of a DMF to generate the $300,000 target by applying 2 to 3% levy against rooms only, or by applying a lower percentage against a broader segment of the tourism sector.

2. Revenue and Operating Cost Rationalization

i. Review Membership Fee Alternatives ii. Review of Core Service Alternatives

The ability of STA to generate the $300,000 target through a combination of membership fee alternatives or other revenue enhancements, in conjunction with operating cost reductions.

3. Combination of Alternatives 1 and 2

The ability of STA to generate in excess of $300,000 per annum in order to enhance marketing and other operating services through the re-introduction of a DMF in conjunction with other revenue enhancement alternatives and operating cost reductions.

7.0 DESTINATION MARKETING FEE ALTERNATIVES

7.1 Introduction

This section considers the impact of re-instating a Destination Marketing Fee within Stratford’s

accommodation sector on a go forward basis, as well as other potential levies which may be considered

amongst STA’s membership.

7.2 Dedicated Rooms Levy Alternatives

STA currently has 65 accommodation members comprised of 50 B&B’s each offering less than 8 rooms and

15 inns, motels and hotels. Accommodation members represent a total inventory of 733 rooms, of which

152 rooms are considered small B&B’s, with the remaining 581 rooms being hotels, motels and inns. In

2012, it is estimated that the STA accommodation membership will achieve an annual occupancy of 34% at

an Average Daily Rate of $110, generating approximately $10 Million in room revenue. In 2012, STA

received $286,000 in provincial funds from the Ministry of Tourism, Culture and Sport as a replacement of

the potential revenue from a 3% DMF, which will no longer be provided as of December 31, 2012.

In order to replace the provincial transition funds, consideration has been given to the impact of re-

introducing a DMF amongst STA accommodation members. At $10 Million in projected room revenues, a

1% DMF would generate $100,000; 2% DMF would generate $200,000; and 3% DMF would generate

$300,000 in DMF revenues. After HST payments, STA would net from $88,500 up to $265,000 in

contributions to its annual operating budget for 2013. By applying a 3% DMF to all rooms sold by STA accommodation members, STA would replace approximately 93% of its share of DMF transition funds received in 2012 (Table 7-1).

TABLE 7-1

DMF FUND POTENTIAL ALTERNATIVE # 1

DEDICATED ROOMS LEVY FOR STA ACCOMMODATION MEMBERS AT 1, 2 and 3% STA ACCOMMODATION MEMBERS 2012 F 1% DMF 2% DMF 3% DMF

Rooms 733 733 733 733 Annual Occupancy 34.0% 34.0% 34.0% 34.0% Average Daily Rate $110.00 $110.00 $110.00 $110.00 RevPar $37.40 $37.40 $37.40 $37.40 Available Room Nights 267,545 267,545 267,545 267,545 Occupied Room Nights 90,965 90,965 90,965 90,965 Room Revenue $10,006,183 $10,006,183 $10,006,183 $10,006,183 DMF TRANSITION FUNDS $286,000 DMF FORECAST $100,000 $200,000 $300,000

DMF Less HST $88,496 $176,991 $265,487 NET DMF to STA $286,000 $88,500 $177,000 $265,500 Source: PKF Consulting Inc.

As a second alternative, a Volume-Based Plan of $3.00 (net after HST) per occupied room night sold across all STA accommodation members would generate $273,000 in potential operating revenues for STA (Table 7-2). However, should only the smaller B&B operators with less than 8 rooms opt for a

Volume-Based program, approximately $33,000 would be generated.

TABLE 7-2


VOLUME-BASED OPTION @ $3 PER ORN

$3 per ORN for B&B's w ith less

$3 per ORN Full than 8 Rooms STA ACCOMMODATION MEMBERS 2012 F Membership Only

Rooms 733 733 152 Annual Occupancy 34.0% 34.0% 20.0% Average Daily Rate $110.00 $110.00 $85.00 RevPar $37.40 $37.40 $17.00 Available Room Nights 267,545 267,545 55,480 Occupied Room Nights 90,965 90,965 11,096 Room Revenue $10,006,183 $10,006,183 $943,160 DMF TRANSITION FUNDS $286,000 VOLUME-BASED FORECAST @ $3.00 per ORN $273,000 $33,000 NET DMF to STA $286,000 $273,000 $33,000

Source: PKF Consulting Inc.

The 3rd alternative calls for a combination of implementing a 3% DMF amongst the hotels, motels and inns

members, with the smaller B&B’s choosing to contribute $3.00 per room sold towards STA. Under this

scenario, the accommodation sector would generate an estimated $274,000 in operating revenues towards STA’s go-forward budget, which represents approximately 96% of the provincial transition funds received in 2012 (Table 7-3).

TABLE 7-3


DMF + VOLUME-BASED OPTION @ $3 PER ORN

$3 per ORN for B&B's with less

STA ACCOMMODATION MEMBERS 2012 F DMF @ 3% than 8 rooms Only

TOTAL 2013 F

Rooms 733 581 152 733 Annual Occupancy 34.0% 37.7% 20.0% 34.0% Average Daily Rate $110.00 $113.47 $85.00 $110.00 RevPar $37.40 $42.74 $17.00 $37.40 Available Room Nights 267,545 212,065 55,480 267,545 Occupied Room Nights 90,965 79,869 11,096 90,965 Room Revenue $10,006,183 $9,063,023 $943,160 $10,006,183 DMF TRANSITION FUNDS $286,000 DMF and VOLUME-BASED FORECAST $272,000 $33,000

DMF Less HST $240,708 $305,000

$240,708

NET DMF to STA $286,000 $240,700 $33,000 $273,700 Source: PKF Consulting Inc.

7.3 Other Levy Alternatives

Table 7-4 summarizes the revenue potential from other levy alternatives, including a surcharge on Stratford

Theatre ticket sales, and the application of a destination marketing fee to the restaurant sector.

Attendance to the Stratford Festival is projected to reach 400,000 in 2012. By applying a $0.25, $0.50 or

$1.00 surcharge on ticket sales, the total revenue generated would range from $100,000 to $400,000. By

netting out the HST and allowing for a 10% administration fee for Festival staff to collect the proposed

surcharge, the potential DMF from Stratford Festival ticket sales would range from $79,000 at a $0.25 levy to $159,000 for a $0.50 levy and $319,000 for a $1.00 levy. It should be noted that there have been

no discussions with Stratford Festival representatives to gauge their receptiveness to implementing a

potential levy on ticket sales.

Two potential levy alternatives have also been applied to Stratford’s restaurant sector. Statistics Canada

estimates that visitors to Perth County spent $37.5 Million in food and beverage expenditures in 2010, of

which PKF has estimated that 75% of the sales have occurred at restaurants located in Stratford’s

downtown. Furthermore, in order to account for the seasonal nature of tourism in Stratford, only sales in

Quarters 2 and 3 have been considered ($17.15 Million), which represents 61% of total restaurant sales.3

By applying a 1% levy on restaurant sales generated over the April to September period, STA

restaurant members could potentially generate $152,000 in revenue towards STA’s operating

3 Statistics Canada, TRSC and ITS, 2010 for Perth County, Ontario

budget. This option may be difficult to implement, as it would be challenging for STA to track restaurant

sales amongst its members.

As an alternative option, consideration could be given to applying a per seat fee to STA restaurant

members, similar to the Volume-Based option amongst the accommodation sector. STA has 44 restaurant

members which offer a total of 4,742 seats, for an average of 108 seats per establishment. For the

purposes of this analysis, a $6.00 per seat fee has been applied to the restaurant sector, which would generate approximately $25,000 in revenue to STA, after HST. A flat charge per seat would be easier to

implement within the restaurant sector than a levy on sales. Further analysis has been completed on this

option within the following membership fee section.

TABLE 7-4

OTHER LEVY ALTERNATIVES FOR STA OPERATING BUDGET

1 Stratford Ticket Sales 2012 Attendance Forecast 400,000 Current Stratford Ticket Handling Fee $7.08 Ticket Surcharge $0.50 $0.75 $1.00 Revenue Potential $200,000 $300,000 $400,000

Revenue Less HST $177,000 $265,000 $354,000 Less Admin $17,700 $26,500 $35,400

NET DMF to STA $159,000 $239,000 $319,000

2 Perth County Restaurant Visitor Sales $37,486,000 % of Sales in Stratford @ 75% $28,115,000 % of Sales in Q2 and Q3 @ 61% $17,150,000 DMF FORECAST 1%

DMF Potential $172,000 DMF Revenue Less HST $152,200

NET DMF to STA $152,000

3 STA Restaurant Sales Per Seat # of STA Restaurant Members 44 # of Seats 4,742

$6.00 108 Avg

DMF FORECAST DMF Potential $28,452

DMF Revenue Less HST $25,200 NET DMF to STA $25,000

Sources: Stratford Festival, Statistics Canada TRSC/ITS 2010;PKF Analysis

TABLE 8-1 STA Membership Fees - 2012 and Proposed 2013 Membership Fees

Based on Marginal Increases Proposed

2013 2012 Membership Membership

STA Member Category Fee Fee % Change Accommodation Assume DMF Re-instated

Under 8 Rooms $130.00 9-19 Rooms $105.00

20-50 Rooms $80.00 51+ Rooms $53.00

Accommodation Per Establishment n/a $100.00 Restaurant $370.00 $380.00 3% Retail $370.00 $380.00 3% Attraction/Event

In County Annual $210.00 $220.00 5% In County One Time $50.00 $60.00 20%

Outside Perth Annual $300.00 $310.00 3% Outside Perth One Time $55.00 $65.00 18%

Destination/Association $370.00 $370.00 0% Food Producer $210.00 $210.00 0% Source: STA Membership and PKF Consulting Analysis

8.0 REVENUE AND OPERATING COST RATIONALIZATION

8.1 Introduction

In addition to Destination Marketing Fee alternatives, consideration has been given to a review of

membership fee alternatives and other Core Services including Event Management and marketing services

provided by STA.

8.2 Review of Membership Fee Alternatives

8.2.1 Marginal Increases to Membership Categories

Since 2010, when the former DMF was discontinued, accommodation members have been given the choice

between a stratified membership fee based on size of property or a volume-based fee of $2.00 per occupied

room night. The 2012 accommodation membership rate structure as per the table below, generated

$53,000 in member revenues last year, based on 46 establishments opting to pay on a stratified

membership fee rate basis.

Table 8-1 provides a summary of the 2012 membership rate structure by sector in comparison to the

proposed structure for 2013. Under the assumption that a DMF will be re-introduced on a go forward basis,

proposed membership

fees for the

accommodation sector

have been based on a

nominal charge of $100

per establishment,

regardless of size.

Proposed membership

rate increases for the

Restaurant, Retail and

Events and Attractions

categories call for a $10

increase, with no

changes to the

Destinations &

Associations and Food

Producer categories,

until such time as a improved benefit package can be established for these categories.

Based on re-instating a DMF together with applying a base membership fee per accommodation

establishment and marginal fee increases to the Restaurant, Retail and Events and Attractions categories,

total STA membership fees are projected to decline by approximately 58% from $135,000 in 2012, to

$57,000 in 2013, largely due to changes within the Accommodation sector (Table 8-2).

TABLE 8-2

REVENUE AND OPERATING COST RATIONALIZATION ALTERNATIVE # 1: MARGINAL INCREASE TO MEMBERSHIP FEES

2012 2013 Proposed Membership Membership 2013 Revenue % Fee

# Members Rate 2012 Revenues Rate Projection Increase Accommodations # Rooms Assume DMF Re-Instated Volume-Based Fee / occupied room night 20 109 $2.00 $27,000 $0.00 $0

$0.00 $0 $0.00 $0 $0.00 $0 $0.00 $0

- Under 8 Rooms 31 93 $130.00 $12,090 -

9-19 Rooms 9 121 $105.00 $12,705 - 20-50 Rooms 4 134 $80.00 $10,720 -

51+ Rooms 2 326 $53.00 $17,278 - Subtotal 66 783 $1,209 $79,793 $0 $0 -

Restaurants Restaurants 44 $370.00 $16,280 $380.00 $16,720 3%

Subtotal 44 $370 $16,280 $380 $16,720 Retail Retail 66 $370.00 $24,420 $380.00 $25,080 3%

Subtotal 71 $370 $24,420 $353 $25,080 Events and Attractions In County - Annual 51 $210.00 $10,710 $220.00 $11,220

$60.00 $0

$310.00 $0 $65.00 $0

5% In County - One Time 0 $50.00 $0 20%

Outside Perth County - Annual 0 $300.00 $0 3%

Outside Perth County - One Time 0 $55.00 $0 18% Subtotal 52 $206 $10,710 $216 $11,220 Destinations and Associations

In County - Annual 4 $370.00 $1,480 $370.00 $1,480 $630.00 $0

0% Outside Perth County - Annual 0 $630.00 $0 0%

Subtotal 4 $370 $1,480 $370 $1,480 Food Producers Food Producers 14 $210.00 $2,940 $210.00 $2,940 0%

Subtotal 15 $196 $2,940 $196 $2,940 TOTAL 252 $538 $135,623 $226 $57,000 -58%

Source: STA Membership Liason Committee Minutes and PKF Consulting Analysis

8.2.2 Introducing Stratified Restaurant Membership Fee Categories

The STA membership survey completed as part of the Phase 1 analysis indicated that 70% of respondents

found the STA membership fee structure to be “equitable”. However, of those that found the fee structure to

be inequitable, most pointed to a perceived imbalance in the fee to benefit ratio for the Restaurant segment,

in comparison to the Accommodation segment. As such, Table 8-3 presents a proposed stratified fee

structure for the restaurant sector based on the size of establishment, similar to the accommodation

membership fee structure between 2010 to 2012.

TABLE 8-3

Proposed Stratified Restaurant Membership Fees Proposed

2013 Membership

Restaurant Sector Fee Per Seat Under 75 seats $400.00

76-150 seats $500.00 151-250 seats $600.00

251+ seats $700.00 Source: PKF Consulting Analysis

Based on re-instating a DMF; implementing a stratified restaurant membership fee; and marginal fee increases to the Retail and Events and Attractions categories, total STA membership fees are projected to decline by approximately 54% from $135,000 in 2012, to $62,000 in 2013 (refer to Table 8-

4).

TABLE 8-4

ALTERNATIVE #2 : MARGINAL MEMBERSHIP INCREASES AND STRATIFIED RESTAURANT MEMBER FEES

2013 Revenue % Fee # Members 2012 Rate 2012 Revenues 2013 Proposed Projection Increase

Accommodations # Rooms Assume DMF Re-Instated Volume-Based Fee / occupied room night 20 109 $2.00 $27,000 $0.00 $0

$0.00 $0 $0.00 $0 $0.00 $0 $0.00 $0 $0.00 $0

-100% Under 8 Rooms 31 93 $130.00 $12,090 -100%

9-19 Rooms 9 121 $105.00 $12,705 -100% 20-50 Rooms 4 134 $80.00 $10,720 -100%

51+ Rooms 2 326 $53.00 $17,278 -100% Contra 0 0 $0.00 $0 Subtotal 66 783 $1,209 $79,793 $0 $0 -100%

Restaurants # Seats

$400.00 $7,600 $500.00 $7,500 $600.00 $4,800 $700.00 $1,400

$0.00 $0

Under 75 seats 19 976 $370.00 $7,030 8%

76-150 seats 15 1,206 $370.00 $5,550 35% 151-250 seats 8 1,103 $370.00 $2,960 62%

251+ seats 2 933 $370.00 $740 89% Contra 0 $0.00 $0 Subtotal 44 $370 $16,280 $484 $21,300 31%

Retail Retail 66 $370.00 $24,420 $380.00 $25,080

$0.00 $0 3%

Contra 5 $0.00 $0 Subtotal 71 $344 $24,420 $353 $25,080 Events and Attractions In County - Annual 51 $210.00 $10,710 $220.00 $11,220

$60.00 $0

$310.00 $0 $65.00 $0

$0.00 $0

5% In County - One Time 0 $50.00 $0 20%

Outside Perth County - Annual 0 $300.00 $0 3% Outside Perth County - One Time 0 $55.00 $0 18%

Contra 1 $0.00 $0 Subtotal 52 $206 $10,710 $216 $11,220 Destinations and Associations In County - Annual 4 $370.00 $1,480 $370.00 $1,480

$630.00 $0 $0.00 $0

0% Outside Perth County - Annual 0 $630.00 $0 0%

Contra 0 $0.00 $0 Subtotal 4 $370 $1,480 $370 $1,480 Food Producers Food Producers 14 $210.00 $2,940 $210.00 $2,940

$0.00 $0 0%

Contra 1 $0.00 $0 Subtotal 15 $2,940 $196 $2,940 TOTAL 252 $538 $135,623 $246 $62,000 -54%

Source: STA Membership Liason Committee Minutes and PKF Consulting Analysis

8.2.3 Comparison of Membership Fee Contributions by Sector

Table 8-5 provides a comparison of contributions to STA’s overall budget in 2012 by the provincial transition

funds and membership fees, with the 2013 proposed membership fee structure calling for the

implementation of a per seat restaurant fee structure, marginal increases to the Retail and Attraction / Event

segments and the re-introduction of a 3% DMF. While the total membership/DMF revenues are projected to

decline by approximately 22% in 2013, from $421,000 to $328,000, the membership fees contribution from

the restaurant sector is projected to increase by approximately $5,000. Under a stratified restaurant fee structure, revenues from the Restaurant sector will represent 7% of total revenues, which is comparable to projected contributions from the Retail Sector.

TABLE 8-5

STA Membership Fee Comparison by Sector, 2012 and Proposed 2013 STA Member Category

Total

Members

% Members

2012 Membership

Fees

% 2012 Fees

2013 Proposed Membership

Fees

% 2013 Fees Accommodation 65 26% $79,793 19% $0

$265,500 0%

81% Accommodation DMF $286,000 68%

$365,793 87% $265,500 $21,300 $25,080 $11,220

$1,480 $2,940

81% 7% 8% 3% 0% 1%

Restaurant Members (by Size in 2013) 43 17% $16,280 4% Retail 66 26% $24,420 6% Attraction/Event 57 23% $10,710 3% Destination/Association 5 2% $1,480 0% Food Producer 15 6% $2,940 1% TOTAL 251 100% $421,623 100% $327,520 100% % Change -22% Source: STA Membership Liason Committee Minutes and PKF Consulting Analysis

8.3 Review of STA Core Services Alternatives

8.3.1 Increased Public Sector Funding Sources

In order for STA to increase its overall operating budget and marketing efforts on a go forward basis, there

may be an opportunity to increase funding levels from its public sector sources. For the purposes of this

analysis, we have assumed:

Funding from the City of Stratford will increase from $362,000 in 2012 to $400,000 next year.

At the same time, funding from the Ontario Tourism Partnership is expected to decrease from $60,000 in

2012 to $50,000 in 2013.

8.3.2 Increased Private Sector Funding Sources

In addition to potential changes to STA’s membership fees and the re-instatement of a DMF, there is an

opportunity for STA to increase its funding contributions from its City Centre Partnership and marketing

sales. For the purposes of this analysis, we have assumed:

Funding from the City Centre Partnership will increase from $37,000 in 2012 to $40,000 in 2013;

and

STA Marketing Sales will increase from $70,000 in 2012 to $130,000 in 2013, through the sale of badges on the www.visitstratford.ca main page and increased marketing partnerships with RTO 4.


8.3.3 Implementation of Lead Referral Charges

In addition to a revised membership fee structure, STA could consider implementing a set rate based on the

number of leads generated through its www.visitstratford.ca website and passed onto its individual

members. Based on a Google Analytics analysis, STA’s website generated over 560,000 leads for its

members in 2012, of which 69% were for accommodation; 13% for restaurants and 10% for retail

establishments. By implementing a fee of $0.05 per lead to a member site; $0.03 per lead to the micro site;

and $0.02 per promotional lead or a flat rate of $0.05 per lead, STA could generate incremental revenues

ranging from $19,000 to $28,000 to its operating budget in 2013, which represents an average of $75 per

member under a multi-fee program; and $111 per member at a flat rate of $0.05 per lead. However, in

discussing this option with STA members, several expressed concern about being charged for hits that may

have been unintentional and or competitive in nature, with other members checking out their sites for

availability and pricing. As such, the lead referral scenarios have been reduced by a 15% factor. Under this

scenario, STA could generate incremental revenues from $16,000 to $24,000 to its 2013 operating budget,

which represents an average fee of $63 to $95 per member (refer to Table 8-6).

TABLE 8-6 REVENUE AND OPERATING COST RATIONALIZATION

ALTERNATIVE # 3: FEE FOR SERVICE BASED ON LEAD REFERRALS (less 15% factors)

SECTOR # Members % Membership 2012 Leads % Leads Accommodations 66 26% 387,978 69% Restaurants 44 17% 71,961 13% Retail 71 28% 56,909 10% Events and Attractions 52 21% 26,359 5% Destinations and Associations 4 2% 3,849 1% Food Producers 15 6% 15,102 3% TOTAL 252 100% 562,158 100% Lead Referral Rate Options $0.05/$0.03/$0.02 Avg $0.05 Avg Accommodations $10,748 $14 Restaurants $1,920 $44 Retail $1,868 $26 Events and Attractions $1,127 $22 Destinations and Associations $145 $36 Food Producers $509 $34

$16,489 $21 $3,058 $70 $2,419 $34 $1,120 $22

$164 $41 $642 $43

TOTAL $16,000 $63 $24,000 $95 Source: STA, Google Analytics and PKF Consulting Analysis

8.3.4 Event Management Options

Table 8-7 provides a summary of the operating revenues and costs associated with the 4 events managed

by STA including: Savour Stratford, Swan Weekend, Heritage Festival and Victorian Christmas. The

Savour Stratford event is STA’s most successful event, and is forecast to contribute $293,000 in revenues in

2012, with the remaining 3 events contributing a further $4,000 for a total budget of $297,000. Direct


operating expenses which include contract staff, bookkeeping, marketing and general costs for STA

managed events have been budgeted at $284,000 in 2012, or 96% of revenues. In 2013, corporate

sponsorship levels for Savour Stratford are projected to further increase to $100,000, with costs remaining

the same, which will provide a projected $20,000 contribution to STA’s operating budget.

TABLE 8-7 REVENUE AND OPERATING COST RATIONALIZATION

ALTERNATIVE #4 EVENT MANAGEMENT STA MANAGED EVENTS

Savour Stratford Swan Weekend Heritage Festival Victorian Christmas TOTAL EVENTS 2012 Budget % 2012 Budget % 2012 Budget % 2012 Budget % 2012 Budget % 2013 Forecast

Attendance 32,000 Revenues

Celebrate Ontario Partnership $75 26% Events (Savour Stratford) $128 44% Corporate Sponsorship $90 31%

5,000

$0 0% $0 0% $0 0%

1,500 Est

$0 0% $0 0% $2 100%

$0 0% $0 0% $2 100%

$75 25% $128 43%

$94 32%

$75 $128 $100

Total Revenues $293 100% $0 0% $2 100% $2 100% $297 100% $303 Expenses

Contract Staff $43 15% Bookkeeping $5 2% Operating Expenses $213 73% Marketing $0 0%

$2 10% $0 0% $5 35% $8 55%

$0 0% $0 0% $1 68% $5 333%

$0 0% $0 0% $2 100% $0 0%

$45 15%

$5 2% $221 75% $13 4%

$45 $5

$221 $13

Total Expenses $261 89% $15 100% $6 402% $2 100% $284 96% $284 Net Operating Income $32 11% -$15 -100% -$5 -302% $0 0% $13 4% $19

Source: STA Operating Budgets and PKF Consulting Analysis

There has been some interest expressed by an outside operator in bringing a new Renaissance Festival to

Stratford in 2013. For the purposes of this analysis, we have assumed:

A new Renaissance Festival would replace the Heritage Festival in 2013; and

STA would share in the risk of the new Festival with the operator, through an investment in direct

operating expenses to launch the event.

With the introduction of a new Renaissance Festival, Table 8-8 summarizes STA’s event management

department in 2013. Under this scenario, corporate sponsorships have been projected to increase by a

further $5,000 in 2013, with operating expenses increasing by $24,000, largely due to the new Renaissance

Festival, resulting in a break-even,

To the extent that STA can continue to source the Celebrate Ontario grant and increase Corporate Sponsorships, while not incurring additional staffing costs, in order to break-even on event management, the incremental visitor expenditures generated should warrant STA’s continued involvement in event management.

TABLE 8-8

REVENUE AND OPERATING COST RATIONALIZATION ALTERNATIVE #5 EVENT MANAGEMENT with NEW RENAISSANCE FESTIVAL

STA MANAGED EVENTS Savour Stratford Swan Weekend Renaissance Festival Victorian Christmas TOTAL EVENTS

2013 Budget % 2013 Budget % 2013 Budget % 2013 Budget % 2013 Budget % Attendance 33,000 Revenues

Celebrate Ontario Partnership $75 25% Events (Savour Stratford) $128 42% Corporate Sponsorship $100 33%

5,000

$0 0% $0 0% $0 0%

$0 0% $0 0% $3 200%

$0 0% $0 0% $2 100%

$75 24% $128 42% $105 34%

Total Revenues $303 100% $0 0% $3 200% $2 100% $308 100% Expenses

Contract Staff $43 14% Bookkeeping $5 2% Operating Expenses $213 70% Marketing $0 0%

$2 10% $0 0% $5 35% $8 55%

$0 0% $0 0%

$25 1667% $5 333%

$0 0% $0 0% $2 100% $0 0%

$45 14%

$5 2% $245 80% $13 4%

Total Expenses $261 86% $15 100% $30 2000% $2 100% $308 100% Net Operating Income $42 14% -$15 -100% -$27 -900% $0 0% $0 0%

Source: STA Operating Budgets and PKF Consulting Analysis

9.0 STA OPERATING BUDGET ALTERNATIVES

9.1 Introduction

The following section examines 3 revenue-generating business model alternatives designed to replace the

loss of provincial transition funding and grow the organization and in turn, the value of volume of tourism to

Stratford.

9.2 STA Base Level Operating Budget of $1.3 Million

At a minimum level, STA must be able to generate an additional $286,000 in revenues in the upcoming

year, 2013 in order to replace its loss in DMF transitional funding as of December 31, 2012. Table 9-1

provides a 2013 Base Level Operating Budget to achieve this goal, based on the following assumptions:

STA Revenues:

Public Sector Sources:

Increased funding from the City of Stratford, from $362,000 in 2012 to $400,000 in 2013;

No Provincial Transitional funding in 2013;

OTMP grant to be reduced from $60,000 to $50,000 in 2013;

Grant contributions from Provincial/Federal Summer Student employment programs to remain at current levels of $17,000 per annum.

Private Sector Sources:

Marginal increases to STA membership fees, including the introduction of a stratified Restaurant

membership fee with a $10 increase to the Retail and Events & Attractions sectors, as per Table 8- 2;

The re-introduction of a 3% DMF amongst the hotels, motels and inns members, which is projected

to generate $265,000 in operating revenues towards STA’s go-forward budget, which represents approximately 93% of the provincial transition funds received in 2012 (refer to Table 7-1);

A $3,000 increase in City Centre Committee Partnership funding;

An additional $20,000 in marketing revenue due to the introduction of member badges on STA’s

website and $40,000 due to increased marketing partnerships with RTO 4; and

Other private sector funding sources to remain at current levels of $28,000 in 2013.

STA Events:

STA will continue to manage 4 events: Savour Stratford, Swan Weekend, Heritage Festival and

Victorian Christmas in the upcoming year;

Corporate Sponsorships for Savour Stratford will increase to $100,000 in 2013; and

Celebrate Ontario will continue to support Savour Stratford at $75,000 per year.

Total Revenues:

Under STA’s Base Operating Model, total revenues from all sources have been projected to increase by $25,000 in 2013 to reach just under $1.3 Million, representing a 2% increase over 2012 operating income.

STA Expenses:

STA Events:

Direct operating expenses related to event management have been projected to remain flat in 2013, at $284,000.

Attractions & Special Projects:

Expenses related to Attractions and Special Projects have been increased at an inflationary factor

of 2% in 2013.

Marketing:

STA’s marketing expenses for media buys, creative, media relations, and print guides have been increased by $18,000 in 2013, due to its ability to access additional revenue received from all sources.

Administration & General:

Salaries, wages and benefits have been increase from $443,000 in 2012 to $456,000 in 2013, to

account for additional bookkeeping expenses related to the collection of the DMF as well as an inflationary factor; and

All other A&G costs have been increased by an inflationary factor of 2%.

Total Expenses:

Under STA’s Base Operating Model, total expenses from all sources have been projected to

increase by $37,000 in 2013 to reach approximately $1.28 Million, representing a 3% increase over 2012 operating expenditures.

Net Operating Income:

At a Base Operating Budget, STA’s net operating income is projected at $10,000 in 2013, which is comparable to STA’s 2012 operating budget.

TABLE 9-1

STRATFORD TOURISM ALLIANCE BASE LEVEL OPERATING BUDGET @ $1.3 MILLION

2012 BUDGET AND 2013 FORECAST 2012 Budget % 2013 Forecast % Chg 2012-13 REVENUES Public Sector Sources

City of Stratford DMF Transition Funding Ontario Tourism Partnership Summer Student Grants

$362 28% $286 23%

$60 5% $17 1%

$400 31%

$0 0% $50 4% $17 1%

10%

-100% -17% 0%

Subtotal $725 57% $467 36% -36% Private Sector Sources

STA Memberships DMF (3%) City Centre Committee Partnership Marketing Sales Other

$87 7% $27 2% $37 3% $70 6% $28 2%

$62 5%

$266 21% $40 3%

$130 10% $28 2%

-29% 883%

8% 86% 0%

Subtotal $249 20% $526 41% 111% Events

Savour Stratford, Swan, Heritage & V Christmas Corporate Sponsorship Celebrate Ontario Partnership

$128 10%

$94 7% $75 6%

$128 10% $100 8% $75 6%

0% 6% 0%

Subtotal $297 23% $303 23% 2% TOTAL REVENUES $1,271 100% $1,295 100% 2%

EXPENSES Events Contract Staff Bookkeeping Operating Expenses Marketing

$45 15%

$5 2% $221 75% $13 4%

$45 15%

$5 2% $221 73% $13 4%

0% 0% 0% 0%

Subtotal $284 96% $284 94% 0% Attractions & Special Projects

Attraction Operating Expenses Special Projects

$12 1% $50 4%

$12 1% $51 4%

2% 2%

Subtotal $62 5% $63 5% 2% Marketing

Media Buys Creative Media Relations Print Guides

$261 21% $97 8% $26 2% $35 3%

$279 22%

$99 8% $26 2% $35 3%

7% 2% 2% 2%

Subtotal $418 33% $439 34% 5% Administration & General

Salaries, Wages and Benefits Industry Association Membership Fees Telecommunications Office Supplies Postage/Delivery Financial Services Insurance

$443 35%

$4 0% $13 1%

$9 1% $5 0% $9 1% $3 1%

$456 35%

$4 0% $13 1%

$9 1% $5 0% $9 1% $3 1%

3% 2% 2% 2% 2% 2% 2%

Subtotal $485 38% $499 39% 3% TOTAL EXPENDITURES $1,248 98% $1,285 99% 3%

EXCESS OF REVENUES OVER EXPENDITURES $22 2% $10 1% -55%

Source: Stratford Tourism Alliance and PKF Consulting

9.3 STA Mid-Level Operating Budget of $1.32 Million

Table 9-2 provides a 2013 Mid- Level Operating Budget for STA at a slightly higher budget of $1.32 Million

based on the following assumptions:

STA Revenues:


Similar to the Base Operating Budget of $467,000 in public sector sources in 2013;


Marginal increases to STA membership fees, including the introduction of a stratified Restaurant membership fee with a $10 increase to the Retail and Events & Attractions sectors, as per Table 3- 2;

The re-introduction of a 3% DMF amongst the hotels, motels and inns members, which is projected

to generate $265,000 in operating revenues towards STA’s go-forward budget, which represents approximately 93% of the provincial transition funds received in 2012 (refer to Table 8-2);

The introduction of Lead Referral Fee of $0.5 per lead to a member’s website; $0.03 to a

micro-site; and $0.02 for promotional packages generated through STA’s website (reduced by a 15% factor to compensate for mistakes and inquiries of a competitive nature), which is projected to contribute $16,000 in additional revenues for the organization (refer to Table 8-6); and

Funding levels from all other private sector source are consistent with the 2013 Base Operating

Budget;

STA Events:

STA will increase Corporate Sponsorships by $5,000 for total event revenues of $308,000, inclusive of a Celebrate Ontario grant.

Total Revenues:

Under STA’s Mid-Level Operating Model, total revenues from all sources have been

projected to increase by $49,000 in 2013 to reach $1.32 Million, representing a 4% increase over 2012 operating income.

STA Expenses:

STA Events:

Event expenses are projected at $284,000 in line with the Base Operating Model.


Similar to the Base Level Operating Budget, expenses related to Attractions and Special Projects

have been increased at an inflationary factor of 2% in 2013.

Marketing:

STA’s marketing expenses for media buys, creative, media relations, and print guides have been increased by $36,000 in 2013, due to its ability to access additional revenues, largely generated through the new lead referral fees.


A&G costs have been increased by $20,000 to reflect the need for an additional part-time position

to collect Lead Referral fees and manage Events.

Total Expenses:

Under STA’s Mid-Level Operating Model, total expenses from all sources have been projected to increase by $58,000 in 2013 to reach approximately $1.32 Million, representing an 5% increase over 2012 operating expenses.


At a Mid-Level Operating Budget, STA’s net operating income is projected at $10,000 in 2013.

TABLE 9-2

STRATFORD TOURISM ALLIANCE MID LEVEL OPERATING BUDGET @ $1.32 MILLION


City of Stratford DMF Ontario Tourism Partnership Summer Student Grants

$362 28% $286 23%

$60 5% $17 1%

$400 30%

$0 0% $50 4% $17 1%

10%

-100% -17% 0%

Subtotal $725 57% $467 35% -36% Private Sector Sources

STA Memberships DMF (Volume-Based and 3%) Lead Referral Fees @ $0.05/$0.03/$0.02 City Centre Committee Partnership Marketing Sales Other

$87 7% $27 2%

$0 0% $37 3% $70 6% $28 2%

$62 5%

$266 20% $16 1% $40 3%

$130 10% $28 2%

-29% 883%

-- 8%

86% 0%

Subtotal $249 20% $542 41% 117% Events

Savour Stratford, Swan, Renn'ce & V Christmas Corporate Sponsorship Celebrate Ontario Partnership

$128 10%

$94 7% $75 6%

$128 10% $105 8%

$75 6%

0%

12% 0%


EXPENSES Events

Contract Staff Bookkeeping Operating Expenses Marketing

$45 15%

$5 2% $221 75% $13 4%

$45 14%

$5 2% $221 72% $13 4%

0% 0% 0% 0%



$12 1% $50 4%

$12 1% $51 4%

2% 2%



$261 21%

$97 8% $26 2% $35 3%

$276 21% $102 8%

$31 2% $45 3%

6% 5%

21% 31%



$443 35%

$4 0% $13 1%

$9 1% $5 0% $9 1% $3 1%

$463 35%

$4 0% $13 1%

$9 1% $5 0% $9 1% $3 1%

5% 2% 2% 2% 2% 2% 2%




9.4 STA Enhanced Operating Budget of $1.6 Million

Table 9-3 provides a 2013 Enhanced Operating Budget for STA with the goal of growing the DMO to a $1.6

Million organization, based on the following assumptions:

STA Revenues:


Under this model, approximately $320,000 in revenues from a $1.00 surcharge on Stratford ticket sales has been added as a key source of revenue, as per Table 7-4;

All other Public Sector funding sources remain consistent with the Base and Mid-Level Operating

Budgets.


Private Sector Sources are reflective of the Mid-Level Operating Model;

STA Events:

STA will replace the Heritage Festival with a new Renaissance Festival in 2013 and increase Corporate Sponsorships by $5,000 for total event revenues of $308,000, inclusive of a Celebrate Ontario grant (refer to Table 8-8)

Total Revenues:

Under STA’s Enhanced Operating Model, total revenues from all sources have been

projected to increase by $365,000 in 2013 to reach just over $1.6 Million, representing an 29% increase over 2012 operating income.

STA Expenses:

STA Events:

Additional revenues generated through a Stratford Ticket sale surcharge will provide the organization the ability to further invest in events during the off season. As such, event expenses have been increased by an additional $24,000 over the Mid-Level Operating Budget for the development of 1 additional event, such as a Renaissance Festival, to reach a total of $308,000 in total event expenses.


Similar to the Base and Mid-Level Operating Budgets, expenses related to Attractions and Special

Projects have been increased at an inflationary factor of 2% in 2013.

Marketing:

STA’s marketing expenses for media buys, creative, media relations, and print guides have been increased by an estimated $320,000 in 2013, due to its ability to access additional revenues, largely generated through Stratford Festival ticket surcharges.


A&G costs are in line with the Mid-Level Operating Budget and are reflective of a 2% inflationary

factor and 3% increase in Salaries and Wages.

Total Expenses:

Under STA’s Enhanced Operating Model, total expenses from all sources have been projected to increase by over $367,000 in 2013 to reach approximately $1.6 Million, representing a 29% increase over 2012 operating expenses.


STA’s net operating income is projected at $20,000 in 2013, which is comparable to the 2012 budget.

TABLE 9-3

STRATFORD TOURISM ALLIANCE ENHANCED OPERATING BUDGET @ $1.6 MILLION


City of Stratford Stratford Festival Ticket Surcharge @ $1.00 DMF Ontario Tourism Partnership Summer Student Grants

$362 28%

$0 0% $286 23% $60 5% $17 1%

$400 24% $319 20%

$0 0% $50 3% $17 1%

10%

-- -100% -17% 0%

Subtotal $725 57% $786 48% 8% Private Sector Sources

STA Memberships DMF (Volume-Based and 3%) Lead Referral Fees @ $0.05/$0.03/$0.02 City Centre Committee Partnership Marketing Sales Other

$87 7% $27 2%

$0 0% $37 3% $70 6% $28 2%

$62 4%

$266 16% $16 1% $40 2%

$130 8% $28 2%

-29% 883%

-- 8%

86% 0%

Subtotal $249 20% $542 33% 117% Events

Savour Stratford, Swan, Renn'ce & V Christmas Corporate Sponsorship Celebrate Ontario Partnership

$128 10%

$94 7% $75 6%

$128 8% $105 6%

$75 5%

0%

12% 0%


EXPENSES Events Contract Staff Bookkeeping Operating Expenses Marketing

$45 15%

$5 2% $221 75% $13 4%

$45 14%

$5 2% $245 80% $13 4%

0% 0%

11% 0%



$12 1% $50 4%

$12 1% $51 3%

2% 2%



$261 21%

$97 8% $26 2% $35 3%

$466 28% $152 9%

$66 4% $55 3%

79% 57% 156% 60%



$443 35%

$4 0% $13 1%

$9 1% $5 0% $9 1% $3 1%

$463 28%

$4 0% $13 1%

$9 1% $5 0% $9 1% $3 1%

5% 2% 2% 2% 2% 2% 2%




9.5 Summary

In summary, with the re-introduction of a 3% DMF, approximately a 15% increase in public sector funding

and a renewed membership plan designed to be more equitable amongst all of its sectors in 2013, STA will

be in a position to replace the former revenues received through the provincial DMF transitional funding, in

order to maintain a $1.3 Million Base Operating Budget.

In order to grow the organization, STA should consider charging its members for lead referrals generated

through its website. This will provide STA with an additional $16,000 in revenue which can be re-invested in

marketing efforts for the destination.

The ability to further grow STA’s operating budget to reach $1.6 Million under an Enhanced program will

largely be contingent on partnering with Stratford Festival in order to implement a surcharge on Stratford

Ticket sales.

Table 9-4 provides a summary of the 3 operating budget alternatives for STA, in comparison to the current

2012 operating budget, which should be implemented using a phased approach over the next 1 to 3 years.

TABLE 9-4 SUMMARY OF STA PROJECTED OPERATING BUDGET ALTERNATIVES ($000)

2012 BUDGET BASE 2012 Budget MID-LEVEL 2012 Budget ENHANCED 2012 Budget REVENUES Comparison Comparison Comparison Public Sector Sources

City, OTMP, RTO, Student Grants $439 35% $467 36% $28 $467 35% $28 $467 29% $28 DMF Transition Funding $286 23% $0 0% -$286 $0 0% -$286 $0 0% -$286 Stratford Festival Ticket Sales $0 0% $0 0% $0 $0 0% $0 $319 20% $319

Subtotal $725 57% $467 36% -$258 $467 35% -$258 $786 48% $61 Private Sector Sources

STA Memberships $87 7% $62 5% -$25 $62 5% -$25 $62 4% -$25 DMF (Volume-Based and 3%) $27 2% $266 21% $239 $266 20% $239 $266 16% $239 Lead Referral Fees $0 0% $0 0% $0 $16 1% $16 $16 1% $16 City Centre Committee Ptn $37 3% $40 3% $3 $40 3% $3 $40 2% $3 Marketing Sales $70 6% $130 10% $60 $130 10% $60 $130 8% $60 Other $28 2% $28 2% $0 $28 2% $0 $28 2% $0

Subtotal $249 20% $526 41% $277 $542 39% $293 $542 31% $293 Events $297 23% $303 23% $6 $308 23% $12 $308 19% $12

TOTAL REVENUES $1,271 100% $1,295 100% $25 $1,317 98% $46 $1,636 98% $365 EXPENSES Events $284 96% $284 94% $0 $284 92% $0 $308 100% $24 Attractions & Special Projects $62 5% $63 5% $1 $63 5% $1 $63 4% $1 Marketing $418 33% $439 34% $21 $454 35% $36 $739 45% $321 Administration & General $485 38% $499 39% $14 $505 38% $21 $505 31% $21

TOTAL EXPENDITURES $1,248 98% $1,285 99% $37 $1,307 99% $58 $1,616 99% $367 NET OPERATING INCOME $22 2% $10 1% -$12 $10 1% -$12 $20 1% -$2




Page 72


APPENDIX A:

STA MEMBER SURVEY

Page 1

Stratford Tourism Alliance - 2012 Member Survey

1. Background and Purpose of Survey

The current year is critical to the future of the Stratford Tourism Alliance (STA), considering the expiration of approximately $300,000 in transitional funding from the Province of Ontario on December 31, 2012, and absence of a sustainable funding policy to replace it.

PKF Consulting Inc. (PKF) has been retained by the Stratford Tourism Alliance (STA) to assist in the development of a long-term, stable revenue-generating strategy, and to establish the most effective membership structure focused on:

• Generating revenues in the absence of continued DMF transitional funding; • Developing a membership structure that is perceived as “equitable” to all members; • Providing “pay-to-play” marketing opportunities; • Articulating a vision for the STA focused on providing value and business expansion opportunities to all STA members and stakeholders; and • Attracting visitors to Stratford and Perth County for the benefit of STA members.

As part of our work program, PKF has designed the Stratford Tourism Alliance 2012 Member Survey to generate feedback on member and partner satisfaction with business and marketing strategies, and to identify strengths and weaknesses of existing STA membership, programs and fee structures, and determine opportunities for future improvements.

Your specific input is integral to ensuring that the mandate of the STA can continue under the most effective and sustainable funding model. Please be assured that your individual contact information will remain undisclosed for the purposes of our analysis, and only aggregate results will be presented to the STA.

If you have any questions or if you would prefer to complete this survey over the phone, please contact Fran Hohol at the PKF Consulting office in Toronto at 416 3605000 ext 12.

We respectfully ask that you submit your response by Wednesday, June 13, 2012.

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2. Business Profile

Please answer the following questions about yourself and your business/organization.

*1. Business/Organization Name

*2. Contact Name

*3. Email Address

4. When did your business/organization open?

5. How long have you been with this business/organization?

6. Please indicate the scope of your typical operating season.

Opening Month/Day

Closing Month/Day

7. How many employees work at your organization?

Full-Time

Part-Time

Seasonal/Contract

*8. Within your specific STA Membership sector, please describe the scope/size of your

business/organization.

Accommodation Member - # of rooms

Attraction / Event Member - # of annual attendees

Food Producer Member - Primary Product

Restaurant Member - # of seats (permanent indoor)

Retail Member - # of square feet

Destination & Association Member - # of members

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9. If you are a Restaurant Member, is your establishment licensed?

mlj Yes

mlj No

mlj N/A

10. If you are an Accommodation Member, what type of membership do you currently have

at the STA?

mlj Volume-based

mlj Fee-based

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3. STA Membership & Funding Structure

The typical North American Destination Marketing Organization of comparable size to the Stratford Tourism Alliance collects the majority of its funding from public sources (i.e. Destination Marketing Fee (DMF), Government grants), and the remainder from private sources (i.e. memberships and corporate sponsorships).

Prior to July 2010, the STA charged accommodation members either a fee-per-room or a 3% DMF on booked room nights. The Province eliminated that opportunity but provided transition-funding approximately matching the DMF funding the STA would have collected in each year. As of January 01, 2013 the Province will no longer provide such funding but will allow the STA to introduce marketing fees without restrictions, including non-accommodators. The STA will not be able to continue to provide the existing level of marketing and benefits to its members without an increase in public funding for 2013. They need your help to determine how that funding should be acquired.

Please answer the following questions regarding membership fee structure and potential funding opportunities for the STA in the absence of Provincial transitional funding (which replaced DMF funding in June 2010).

*11. How would you describe the current STA membership structure with respect to

eligibility and fees?

mlj

Equitable

mlj Inequitable - too many levels of fees / benefits

mlj Inequitable - favours one or more specific sectors

12. Kindly provide some commentary/reasons for your response to Q#11.

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13. Should the STA membership fee structure be dependent on any or all of the following

criteria? (Please choose all that apply)

fec Industry Sector/Type of Business

fec Geography

fec Size of Business

fec Loyalty (Renewals)

fec Basic Membership plus Fee for Service

Other (please specify)

14. Do you feel that businesses/organizations located outside of Perth County should be

charged more than other members?

mlj Yes

mlj No

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15. Kindly provide reasons for your response to Q#14

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*16. Would you agree to a Destination Marketing Fee (DMF) being applied to visitors

staying overnight in member accommodations, as it was prior to June 2010?

mlj

Yes

mlj No (Skip to Q #21)

17. Prior to June 2010, the DMF was only applied through Accommodation properties. Do

you feel the funding mix could be expanded to include other commerciallybased tourism

operations? If so, which ones? (Please check all that apply)

fec Attractions

fec Restaurants

fec Retail Businesses

fec Stratford Festival (ticket sales)


18. Based on our comparable research, some Destination Marketing Organizations have

succeeded in increasing their funding through a Consumer Levy on other tourismrelated

activities, such as: Car Rental, Attraction Tickets, etc. Can you suggest any DMF funding

initiatives that might work in Stratford and area?

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4. STA Membership Services & Benefits

Value of a membership must be measurable, as members want to see outcomes and results, such as: Industry Growth, Increase in Member Profitability, Education, Research and Knowledge.

In addition to funding, the STA is in the process of reviewing its membership benefits structure, and they are eager to retain your support while providing you with the best services possible.

Please answer the following questions about your experience with STA's present services to its members, and potential areas for improvement.

19. About how long has your business/organization been a member of the STA?

Years

Months

20. Please identify your top 3 reasons for joining the Stratford Tourism Alliance.

1

2

3

21. Are you a member of any other organization(s)? (Please check all that apply)

fec Stratford BIA

fec Stratford and Area Chamber of Commerce

fec BBCanada

fec FOBBA

fec Stratford Agricultural Society

fec Stratford and Area Bed and Breakfast Association

fec Ontario Restaurant, Hotel & Motel Association

fec Perth County Visitors Association

fec Canadian Federation of Independent Businesses

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22. From your perspective, how has the STA performed in each of the following areas

since the organization was formed in 2008?

Poor Fair Good Very Good Excellent

Strategic Approach - based on 3 C's (Character, Culture and Cuisine)

nmlkj nmlkj nmlkj nmlkj nmlkj

Marketing mlj mlj mlj mlj mlj

Attracting Visitors nmlkj nmlkj nmlkj nmlkj nmlkj

Event Development mlj mlj mlj mlj mlj

Event Hosting nmlkj nmlkj nmlkj nmlkj nmlkj

Member Services mlj mlj mlj mlj mlj

Communication to members nmlkj nmlkj nmlkj nmlkj nmlkj

Ability to measure Stratford's annual tourism performance

mlj mlj mlj mlj mlj


23. What can the STA do to make the membership structure more equitable and add value

for your business/organization?

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24. Within your specific business, which forms of marketing/advertising are most

applicable?

fec Print media

fec Digital media

fec Social media

fec TV Broadcast

fec Radio

fec Live video/webcam


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Stratford Tourism Alliance - 2012 Member Survey 25. Which of the following existing membership benefits are integral to your business, and

to what extent? Would you consider paying to keep these benefits?

No Interest

Interested - as a "pay- Interested - as part of

Interested - as part of increased

to-play" option membership fee membership fee

Listing in STA Guide books (Culinary, Events, Heritage, Visitor's Map, etc.)

Copies of the monthly calendar, posters and other printed STA materials

nmlkj nmlkj nmlkj nmlkj mlj mlj mlj mlj

On-line Searchable Business Directory with web links nmlkj nmlkj nmlkj nmlkj

On-line Event listing mlj mlj mlj mlj

Micro-site page with live link to your website nmlkj nmlkj nmlkj nmlkj

Link to your on-line booking/reservation system mlj mlj mlj mlj

Badge on visitstratford.ca linking visitors to your micro-site nmlkj nmlkj nmlkj nmlkj

Itinerary planning tool mlj mlj mlj mlj

Concierge referrals from STA Visitor Centres nmlkj nmlkj nmlkj nmlkj

Promotional material displays at STA Visitor Centres mlj mlj mlj mlj

Confidential marketing consultation and advice nmlkj nmlkj nmlkj nmlkj

"Daily Events" email mlj mlj mlj mlj

Voting privileges nmlkj nmlkj nmlkj nmlkj

Opportunity to serve on the STA Board mlj mlj mlj mlj

Opportunity to be part of Savour Stratford and other culinary programs

nmlkj nmlkj nmlkj nmlkj

26. Do you feel there are enough benefits to meet the needs of your specific membership

sector?

mlj Yes

mlj No

If No, please specify what is missing?

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27. Please indicate which of the following potential benefits may be of interest and to what

extent.

For definition purposes:

Industry FAM Tour Opportunities are familiarization tours that provide a media writer an all

expense paid trip to Stratford and in return produces an editorial article or broadcast item

promoting Stratford.

PaytoPlay includes an opportunity for a member, at an additional fee, to have their logo

or business name appear in a STA advertisement or promotion.

No Interest

Interested - as "pay-

to-play" option

Interested - as part of

membership fee

Interested - as part of increased

membership fee

Industry FAM Tour Opportunities nmlkj nmlkj nmlkj nmlkj

Access to Tourism-related Research and Statistics mlj mlj mlj mlj

Participation in Programs/Trips to attract Investment (Trade Missions)


Workshops on Tourism Skills and Development mlj mlj mlj mlj

Group purchasing power, e.g., memberships in other organizations


Shared workforce development initiatives mlj mlj mlj mlj

Region-wide tourist information initiatives (other than materials)

Discounted Memberships in other Provincial Tourism Organizations (i.e. Ontario Culinary Tourism Alliance, CAA)


mlj mlj mlj mlj

Group Insurance options nmlkj nmlkj nmlkj nmlkj

Opportunities for professional education discounts mlj mlj mlj mlj

Awards Dinner/Fundraiser nmlkj nmlkj nmlkj nmlkj

Other Events mlj mlj mlj mlj


28. Are there any benefits that were formerly offered by the STA that you would like to see

reinstated? If so, what are they, and why were they important to you?

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Stratford Tourism Alliance - 2012 Member Survey 29. Have you participated in an exchange of products and/or services for advertising and

media exposure from the STA?

mlj

Yes

mlj No

30. If "yes", please describe the nature of the exchange, and whether you were satisfied

with the results.

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31. Did you participate in any "paytoplay" initiatives offered through the STA during the

past 2 years?

fec Yes

fec No

32. If "yes", please describe the nature of the "paytoplay" initiatives.

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33. What do you feel is the most important benefit of being a member of the STA today?

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34. Where do you see new opportunities for the STA's strategic direction over the next 5

years?

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35. Do you have any additional suggestions or feedback for the Stratford Tourism Alliance

regarding development of a sustainable funding plan?

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Please contact Fran Hohol at 416-360-5000 ex. 12, if you have any questions or concerns about this survey, or if you would like to discuss further.

THANK YOU FOR YOUR INPUT!

Documents

DEVELOPMENT OF A STRATEGIC BUSINESS PLAN FOR THE … · 2018-12-18 · September 24, 2012 . Mr. Eugene Zakreski . Executive Director . The Stratford Tourism Alliance . 47 Downie Street