Agenda - 05-19-2009 - 7b - Laserfiche WebLink

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i I mission of the organization and less on government projects that are only peripherally related to the development of tourism and becoming entwined in events that did not produce a visitor-based ROL Some 40% of those that were once divisions of Chambers of Commerce.reported that a key advantage of their independence was that the Chamber was no longer able to appropriate room tax dollars for non-tourism related activities. (if it were a part of a Chamber, a Visitors Bureau would likely become entangled spending its dollars on advocacy issues important to Chamber members. Being a part of a. membership driven Chamber, means the CVB roust often chose between what its members want and what is right for the community and the visitor.) For those CVBs that had been a division of government, the ability to appropriately compensate sales and marketing professionals was cited as a significant advantage to independent status. Additionally, the `speed to market" and the ability to easily adapt to market changes were cited as well. Regardless of the source of independence, the governmental bodies authorizing them believes they now receive a higher Rol from the room tax invested in tourism and destination promotion because a percentage of it is no longer diverted, and all resources are highly focused on the mission. RATIONALE OF DIVISIONAL STATUS • For those CVBs that remain as a Division of a parent organization, the following advantages were identified: IF The CVB that is a Division of a City cited greater access to the Mayor and key Department Heads than it would enjoy if it were an independent contract agency. • The CVB that is a County Department said that being a part of government lessens the level of political involvement that many independent Bureaus must endure to get contracts renewed. 0 The CVB that is a Division' of Government also benefits from savings on shared administrative and health care costs. UNIQUE VARIATIONS • North Carolina State Statutes provide that its CVBs be designed as Quasi-Governmental models. while not holding the authority to impose tax, these unique organizations are, as one respondent said, seen as "instrumentalities of government" and, thus, have broad authority for action and relatively low political downside.* PREFERRED GOVERNANCE STRUCTURES Board design between Bureaus tends to be highly subjective to the culture and make-up of each individual community. In other words, destinations design their Boards to meet the political and destination realities of the regions they serve. ACCOUNTABILITY F overall, most Cities and Counties require their CVBs to provide financial and productivity reports on a regular basis. Bureaus report on measures such as Room Night production, number of Bookings successfully executed and other activity measures deemed important. 426