KPB FY15 Budget Request Borough Assembly Chambers

• Today’s Presentation:

–WHAT and WHO is KPTMC? –Why is Tourism Important –What we do to market The Kenai –2015 KPB Marketing Investment Request &

our Sustainable Funding Initiative

What Is KPTMC? –KPTMC is YOUR marketing organization. –We were created and exist to support the

economy of this Borough.

• Johna Beech – Executive Director, Kenai

Chamber of Commerce and Visitor Center

• Cindy Clock – Executive Director, Seward

Chamber of Commerce

• Joe Connors – Big Sky Charter & Fish Camp

• Michelle Glaves

– Executive Director, Soldotna Chamber of Commerce

• George Heim – Alaska River Adventures

• Jim Lavrakas – Executive Director, Homer Chamber of Commerce

• Ian McGaughey

– Seldovia Village Tribe & Seldovia Chamber of Commerce

• Josh Tobin – Loopy Lupine Distribution LLC

• Dennis Swiderski

– Orca Island Cabins

• Jason Young – Diamond M Ranch Resort

KPTMC Board

Keith Baxter Director of Member Relations

Jhasmine Lamb Communications Manager

KPTMC Staff

Alaska’s 1.8 Million Visitors Spend $3.72 billion dollars on visitor activities, transportation and related expenses. ANNUAL VISITORS CONTRIBUTE MORE THAN

$208 MILLION ANNUALLY TO STATE AND

LOCAL GOVERNMENTS IN TAXES AND FEES

• $643 Million in 2013 – An increase of over 20 Million from the same period

in 2012 (+3.2%) – Surpassed 2008 Record Sales Tax of $636 Million

KPB 2013 2nd and 3rd Quarter Taxable Sales

• $70.5 Million in 2013 – An increase of 1.3 Million over 2012 – Accommodations sales alone returned almost

$2.2 million in sales tax to the KPB in 2013

KPB 2013 Taxable Accommodations Sales

• Shrinking Long Haul Highway Traffic

– Price of Fuel – Shrinking Demographic

• Sport Fishing Prognosis

Industry Challenges

Industry Opportunities • International growth

• Additional Air Lift

• Boomers need for adventure, down time getaway

• Strong Tourism marketing program

• 100th Anniversary of the National park System

Marketing The Kenai, Alaska’s Playground:

In Print:

In Person: Industry Representation

In Person: Industry & Visitor Outreach

Recent Events:

Online:

www.KenaiPeninsula.org

Website Traffic: 65% Search Traffic

• 60% Organic Search Traffic (SEO) • 5% Paid Search Traffic (CPC)

20% Direct Traffic • Print Collateral • Bookmarks • Word of Mouth • Other (document links, emails, QR codes etc.)

15% Referral Traffic (links, Facebook, banners etc.)

Website Enhancements: • Banner advertising • Photo Galleries • Featured Listings • Packages

Expanded Web Services • Social Media Set-Up • Social Media Management • Event Promotion • Social Media Training • Blog Creation • Emarketing & Newsletters

Now that you know what we do let’s answer the question…

The Kenai Peninsula Borough is the Number One Benefactor

of KPTMC’s Marketing. • Every visitor who comes to The Kenai pays taxes

that go to the Borough, regardless of which community they visit or which businesses they frequent.

RETURN ON INVSTMENT

KPTMC Return On Investment To KPB

• Independent Research conducted in 2009 Showed KPTMC Returned at least $4.50 in sales tax for every dollar invested.

• Over $47 Million in Private Sector Spending

• KPTMC Marketing influences at least 10% of Kenai Peninsula Visitors.

But are we doing enough? • We are the best Alaska has to offer, yet we aren’t investing

on a competitive level with our competition.

• Anchorage - 7 million dollars

• Juneau - 1 million

• Fairbanks - 2.9 million

• Mat-Su Borough - $900,000

• KPTMC - $300,000 from KPB

How have we been trying to address the problem?

A possible solution: • In 2011 the KPTMC Board of Directors,

working in conjunction with industry leaders,

began working on a sustainable funding

solution again.

Is a Bed Tax on The Kenai Worth Exploring?

•Bed taxes are common and accepted by the

traveling public and the administration has

supported looking into a plan.

We started talking to Stakeholders Looking at the Pro’s and Con’s

• The Borough • Cities •Unincorporated areas • The Industry and Accommodations Owners • The Public At Large • C.A.V.E. People

We have taken all of this information and started to

formulate a plan…

How Much Money Would This Generate? • Using 2013 taxable accommodations sales figures from

the KPB, a 4% bed tax would generate 2.8 Million Dollars.

• The KPB would keep an administrative fee – 3.04%

would be standard.

Then were would the money go?

WHAT ARE THE BENEFITS? • This assessment will create new jobs in our

communities. It could help build new attractions, as well as retaining and attracting special events. Ultimately, it will provide funds to attract tourists and meetings to The Kenai, which in turn will generate sales tax revenue for the region, which helps to pay for schools, fire, police, streets and other municipal services.

NEXT STEPS? • Continue talking with the industry about

their concerns

• Identify a sponsor for the Ordinance

• Work with the legal department to craft legislation

• Industry and public campaigning

• Public Vote

• FY13 KPB Marketing Investment Request $300,000

– KPTMC’s core tourism marketing program relies on the borough’s matching funds to assist us in our mission to bring visitors to The Kenai. Tourism is a revenue generating mechanism for the Kenai Peninsula Borough and has a significant impact on our regional economy.

– This investment will return over $1.35 Million Dollars to the Borough in sales tax revenue.