Agenda - 05-30-2013 - 2 - Laserfiche WebLink

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Visitors Bureau Fund - continued FY 2013 -14 Objectives • Tourism: Through grow tourism, increase sales tax revenues, jobs and payroll attributable to tourism. The Visitor's Bureau will continue to focus its efforts on the Atlantic Coast, with proven and potential sources of tourism business. The Visitors Bureau Board will also collaborate with municipalities to maximize tourism growth. • Rural Marketing and Agri- Tourism: The Bureau will help County rural and heritage events lure more day visitors to their facilities. Additionally, the Bureau will continue in its efforts on Agri - tourism, strongly positioning the County's agricultural offerings to new buyers. • The Visitors Bureau will focus on building mid -week (Sunday through Thursday) overnight business to Orange County to fill gap of lower occupancies at area's 1,600 hotel rooms. • Site Relocation: The Visitors Center Board will consider whether significant parking challenges and UNC- Chapel Hill's new Visitors Bureau Center warrant relocation of the County's Visitors Center. The task force will examine whether the County benefits more at its existing location or from a location equidistant to all County communities, with central entrances (e.g. closer to an interstate). A recommendation will be made in spring 2014. • Whitted Center Space: If the Board of County Commissioners elects to use the Whitted Building as shared meeting space with a Cultural Center, both the Visitors Bureau and Arts Commission would provide some event planning oversight in the public space for cultural performances. Visitor Bureau staff will also promote the facility in its visitor campaigns and to meeting and event planners. Budget Highlights • Occupancy Rates and Revenue: In FY 2013 -14, the Visitors Bureau will target a 68% occupancy rate. Orange County's 3% occupancy tax projection is $1.2 million. Carrboro's new 140 -room Hampton Hotel will generate an additional $68,482, in occupancy taxes. Additionally, the area's 1,600 hotel rooms will see a slight increase in room rates, back to the industry's 2007 peak rates, and contribute to tax growth. • Travel Revenue and Impacts: Next fiscal year, domestic travelers will spend an estimated $160 million in Orange County, a 5% increase from current year estimates. State and local tax revenues projections from Orange County travel total $12 million. About 1,800 Orange County jobs will be directly attributable to travel and tourism, which will generate $29 million in income, for workers. • Appropriated Fund Balance: In FY 2013 -14, the Visitors Bureau will appropriate $20,000 from fund balance, a decrease of $130,000 from the current year. The FY 2012 -13 fund balance appropriation funded an advertising initiative, the "Orange County Pride" series and agri- tourism efforts. The Bureau will conduct a research study to assess the effects of the recent advertising campaign, in FY 2013 -14. • Town Contributions: In FY 2012 -13, Chapel Hill increased its Visitors Bureau contribution by $25,000 to $175,000. The Bureau will request another $25,000 increase, in the upcoming year. Additionally, Carrboro and Hillsborough will have implemented their 3% occupancy tax, which will generate an additional $65,000 and $52,000, respectively. Currently, neither jurisdiction provides a contribution to the Visitors Bureau. W140J,