CHOC Visitors Bureau minutes 091819

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Guest Presentation Clean Design was originally on the agenda today as guest presenter but unfortunately, two of their staff have had a death in the family . They will present at the next board meeting on Wednesday, October 16 `n Laurie Paolicelli presented in place of Clean Design showing a video on how travel and tourism leaders developed occupancy tax to revive downtown Asheville and put it back on the map . Given current State legislative discussions about how the occupancy tax should be used , this video spotlights the occupancy tax and its effect in the community . Laurie stated that the Governor reported that there was $ 2 , 080, 000 . 00 generated last year by tourism in Orange County . The Visitors Bureau works with Orange County who provides 100% of occupancy tax collected to the Visitors Bureau . The towns of Chapel Hill , Carrboro, and Hillsborough each collect their own occupancy tax . At Mayor Lavelle' s recommendation the Visitors Bureau is working on a video to show how occupancy tax is generated and used here . Executive Directors Report Our Visitor Center numbers are flat . During the State Tourism Conference , Laurie learned that state -wide visitor' s centers are doing really well and the data shows that people want to come into a welcome center . On our last research report, this area received poor marks on welcome . First time ever that they felt like the welcome was not there . We' ll explore and discuss further next month with Clean Design to understand why that is . Gentrification comments . Do You Dare Videos . Laurie touched base on AirBNB . Typically, when hotel investors come in and speak with Economic Development staff, we give them very traditional data . We don 't give them the AirBNB data . Short -term rentals are growing which means occupancy tax we collect from them is growing and it is important to have this data as part of the whole picture . Discussion of new hotels planned to be built soon . A hotel developer has purchased the distillery and the sale has gone through . Rosemary concept . Mayor Hemminger shared that there are three hotels approved but not built yet, Obie Creek, Carraway Village , and Glen Lennox . Also , a hotel being built in Carrboro . Discussion about hotel growth and when to stop . Chair Carey recommended that the industry as a whole need to look ahead and forecast occupancy rates in the coming 10 years so we don ' t out - build and lose Average Daily Rate (ADR ) . While we ' re at 70% average night stays with a supply of 1, 500 rooms , there is no guarantee that we ' ll remain at 70 % when in five years we have 2, 500 rooms . When there is too much supply and the ADR drops, the hotels are no longer able to maintain a living wage for their staff. So a great industry that impacts the region ' s economic development, becomes sub -standard and then the quality of service suffers . Laurie promised , as an agency, to provide all data to governments and developers . Laurie shared another insight from the State Tourism Conference , Asheville and others are using a portion of their occupancy tax revenues and investing in promoting local attractions . Laurie talked to Asheville and 100 % of their occupancy tax is given to tourism . Their budget is $ 20, 000, 000 . 00/year. Asheville is starting to invest in product development . Instead of being a one -trick pony town , they are trying to develop, with some of that occupancy tax, the other services and products that their town offers . For example , use sporting, cultural arts centers , etc . to diversify demand . That is also something CVBs are shifting on , in addition to strongly marketing everything there is to do in that town they also invest in the development of those very services and products they are marketing . In terms of us getting the word out to our constituents , our advertising budget remains at $ 500, 000 . 00 . We ' re working hard on the digital influencers . Clean Design has a completely different perspective design than Fleishman . Fleishman believed in bringing in everybody throughout the world . Clean believes you bring them in from the mid -Atlantic . We ' ve reserved the Carolina Inn on November 4" for a free breakfast and we ' re inviting the community in to hear Clean Design ' s very thorough and detailed research report . Laurie and Economic Development staff Shannan and Annette designed a plan to introduce a whole new Orange Slices walking tour program where we start packing and promoting all the available walking tours . We' ve reserved a url . . . a site and an app . People are asking for walking tours and we have a free walking tour of Chapel Hill , we have the UNC walking tour that has been institutionalized , the Hidden Gems , we have Carrboro working on their walking tour, Hillsborough has a wonderful walking tour, and we have a mural walking tour . 2 1 P a g e CHOCVB BOD Meeting September 18 , 2019