Agenda - 02-17-2009 - 4g - Laserfiche WebLink

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2,„) ,sisgt �oQry p \FITII , CAI2IZBORO & SIILLSI3012OI;GII The leclinn Never Leaves Yon �o °rh eaco‘.oa January 29, 2009 To: Willie Best; Assistant County Manager Brad Broadwell, EDC Director Fr: Laurie Paolicelli cc: Mark Sherburne, Chairman Chapel Hill/Orange County Visitors Bureau Re: State of Tourism/Recommended Contract with the Hyland Group In terms of overall tourism numbers and economic health, Chapel Hill/Orange County hotels and ancillary tourism businesses are down slightly,as a whole,with 2008 occupancy figures ending(-2.8%)and average daily rate up 2%. Orange County, as a whole, is performing on par with the state. As we look at 2009-2010,there are concerns that the national fractured economy, coupled with cuts in business travel, including state government, education, corporate and state associations—coupled with lessening consumer confidence—will impact our hotels, and supporting businesses,including restaurants,retail, transportation and supplementary travel spending. We are fortunate in that the BOCC passed a 1%hotel occupancy tax last year. This has allowed our budget to stay healthy while still protecting a 25%fund balance. However,with the additional funds generated by the 1%tax increase, area hoteliers want the Visitors Bureau to generate new sources of leads and definite bookings. To this end,the Chapel Hill/Orange County Visitors Bureau board of directors is asking that we work with a Washington DC sales firm on a one-year trial basis,to increase the amount of group association and corporate business coming into Orange County. • The Hyland Group is being recommended for these reasons: • Ties to Orange County • Strong reputation in national market • Experience with college towns • Wide reaching rolodex of clients • Willingness to cut rate in half for market our size • High level of references from state and national clients • Knowledge with state and UNC system • Working relationships with Ram's Club in DC • Have met with area hotels and received strong approval rating The Visitors Bureau has allocated the budget. The staff and board are ready to move on this partnership. The visitor's bureau board unanimously passed the recommendation and asked that we now forward to BOCC for contract approval.