HomeMy WebLinkAboutCOW 2015-06-08 Item 2A - Handout Distributed at Meeting - 2015 Seattle Southside Annual Report (Tourism)PART\ ER
PROGRESS
PROSPER
"THE WHOLE IS GREATER THAN
THE SUM OF ITS PARTS" - Aristotle
2015 Annual Re
port
SETTLE im
SOUTHSIDE
Air
WELCOME
Dear Seattle Southside Supporters,
Travel is a primary driver of our
economy and adds jobs faster than
other industries. According to U.S. Travel
Association's travel industry research,
projections point to continued good
news and better trends ahead.
Following a landmark year in nearly
every sector of the local travel and
tourism industry, Seattle Southside
advanced notable momentum for the
local economy in 2014. Last year we
experienced nearly 80 percent hotel
occupancy.
Hotel development is accelerating
in Seattle Southside. With more than
500 additional hotel rooms being
added to the local market, it will add
an estimated $15.5 million in hotel
revenue, produce nearly half a million
dollars in local hotel tax revenue
and assessments and generate an
additional $57 million in economic
impact.
2 - 2015 Annual Report
In Seattle Southside, 2014 marked the
creation of our Tourism Promotion Area.
Unanimously ratified by all three city
councils late last year, this long- awaited
tourism marketing fund will, finally,
allow the region to readily compete for
increased visitation with an emphasis
on the weekend shoulder season.
Our appreciation and gratitude go
to the 39 Seattle Southside hotels
that stepped forward and agreed to
impose a $2 per occupied room night
assessment and pool these resources
to aggressively market our destination.
With funding and partnership support,
Seattle Southside Regional Tourism
Authority will continue to build on the
success of 2014 as we head into a year
teeming with opportunities for everyone
to prosper.
Sincerely,
Katherine Kertzman
Executive Director
Seattle Southside Regional Tourism Authority
"The City of Des Moines is an enormous supporter of
Seattle Southside's mission to promote tourism to our
region. We believe it is a great economic development
supporter that enhances the lives of our residents."
- Mayor Dave Kaplan
City of Des Moines
"Tukwila strives to create a balance in addressing the
needs of its residential community and the environment
with the challenges of maintaining and enhancing a
vibrant development climate. Working with Seattle
Southside makes this balance more attainable."
- Mayor Jim Haggerton
City of Tukwila
"Tourism is vital to our City's economic well- being. It
provides jobs, tax revenues and supports many of our
small businesses. As a partner of Seattle Southside,
we understand the importance and strength of a
coordinated and professional regional effort."
- Mayor Mia Gregerson
City of Sea Tac
SeattleSouthside.com - 3
iirAr
PARTNER
SEATTLE SOUTHSIDE MISSION STATEMENT
To position Seattle Southside as a destination of choice for leisure, group and business
travelers while enhancing the image, confidence and economic strength of the
community.
As the official destination marketing organization of the cities of SeaTac, Tukwila and Des
Moines, Seattle Southside provides leadership and services to competitively market the
destination. This function helps create jobs, grow tax revenue and improve quality of life
for residents and businesses.
Statewide Partnerships
In 2011, Washington State lost the state
tourism office. However, the statewide
industry coalesced to create the
Washington Tourism Alliance (WTA),
which now assumes the critical role of
destination marketer.
WTA procured the state marketing
assets, deployed a statewide marketing
team and is now working to develop a
long -term funding solution. Continued
support of WTA will be critical in 2015
and 2016.
4 - 2015 Annual Report
Regional Partnerships
In June 2015, more than 235,000 people
will visit the Pacific Northwest for the
U.S. Open Championship. This is the
USGA's largest of the 13 championship
series events. The estimated economic
impact to the region is $150 million.
In addition, 4,500 volunteers will work
tirelessly to help make this event truly
impeccable.
Associate Partnerships
Recognizing that overnight visitors in
paid accommodations stay longer and
spend more than day trippers, Seattle
Southside works in partnership with
hoteliers and other businesses to target
key markets with no costly membership
dues.
Working closely with travel and tourism
related businesses and the media,
Seattle Southside continues to grow
new business from the dynamic growth
in the meetings and conventions
segment as a result of the improving
economy.
Partnership with Seattle Southside
provides a connection
to the lucrative
business, group and
leisure travel markets.
Opportunities are
readily available to
network with other businesses, make
contact with and advertise directly
to visitors and groups to help build
awareness for your business.
SeattleSouthside.com - 5
der
PROGRESS
TOURISM DEVELOPMENT
Seattle Southside provides key leadership and helps build integrated marketing
initiatives and resources critical in connecting and motivating key visitor
segments.
Planning & F�
Due to the efforts of many individuals,
the Seattle Southside Tourism
Promotion Area (TPA) was created in
2014.
SeaTac City Council members voted
on October 14, 2014, to establish the
Seattle Southside TPA and charter
the newly created Seattle Southside
Regional Tourism Authority (RTA), a
public corporation and separate legal
entity, which will manage increased
funding and tourism promotion
activities for the cities of Des Moines,
SeaTac and Tukwila.
With $2 collected per occupied room
night, this assessment will increase
Seattle Southside's budget by an
estimated 3 million additional dollars.
6 - 2015 Annual Report
With these additional funds, as
well as lodging tax dollars, Seattle
Southside will be able to increase
tourism promotion, expand product
development, increase its focus on
advocacy and support for statewide
tourism marketing, enhance destination
development and awareness and
expand a heightened level of sales and
visitor services.
The Seattle Southside RTA is governed
by a board of directors appointed by
the City of SeaTac.
Board Chair:
Maureen Huffman
General Manager
Embassy Suites Seattle -
Tacoma International
Airport
Vice Chair:
Sanjay Mahajan
General Manager
Radisson Hotel Seattle
Airport
Secretary:
David Sullivan
General Manager
Cedarbrook Lodge
Treasurer:
Barbara Brunetti
General Manager
Ramada Tukwila
Members:
Barry Baxter
General Manager
Home2 Suites by Hilton
Ken Stockdale
General Manager
Crowne Plaza Seattle
Airport
Frank Welton
Area General Manager
Seattle /Northwest
Hilton Worldwide
Sales & Marketing
Committee Co- Chairs:
Ken Stockdale Crowne
Plaza Seattle Airport
David Sullivan
Cedarbrook Lodge
Research P Pg.por4ing r�onomic
Imper*
Seattle Southside Conversion Study
In partnership with H2R Market
Research, Seattle Southside completed
a conversion study to determine the
overall reach of Seattle Southside in its
ability to attract leisure visitors to the
region.
O
Key takeaways: Over
the past three years,
60 percent of those
who inquired to Seattle
Southside ultimately
visited. The H2R Industry Norm is 33
percent for destinations across the U.S.
These visitors who inquired stay longer
when they visit and spend more than
the average visitor to Seattle Southside.
SeattleSouthside.com - 7
Weekday
40)
Research ContinL:.�.
PROGRESS
Smith Travel Research
In 2014, additional reports were
purchased from STR and cross -
referenced with other data to provide
objective, trend -based analysis and
empirical data about the local lodging
industry.
Key takeaways: Shoulder season
weekends offer the best opportunity
to increase visitation and economic
impact.
Sundays generate the lowest
occupancy and average daily rate with
revenue per available room averaging
only $60.30 by year end.
Based on this evidence, the Seattle
Southside Regional Tourism Authority is
dedicated to creating new campaigns
to stimulate growth and encourage
leisure travelers to stay one more day
dritrbusiness travelers to arrive one day
earlier.
8 - 2015 Annual Report
Staff Develo�.mo..�..e
Today's destination leaders are
charged with collaboratively defining a
community vision for tourism in a high -
stakes, hyper- competitive, constantly
changing global marketplace. To better
prepare Seattle Southside's leaders for
the evolving marketplace and emerging
business trends, staff set a strategic
goal of enhancing knowledge and
leadership skills to add value to the
organization.
In 2014, Katherine Kertzman earned a
Certification in Destination Management
Executive (CDME) from Destination
Marketing Association International
(DMAI).
Ashley Comar, Meagan
McGuire and Kristina Thorne
earned certifications as
Professionals in Destination
Management (PDM) from
DMAI.
With market performance improving
and debt financing more readily
available, hotel development is
accelerating in Seattle Southside.
The 260 -room Crowne Plaza Seattle
Airport, formerly Holiday Inn Seattle
Airport, underwent a significant
$9 million renovation.
A $16 million expansion at Cedarbrook
Lodge increased capacity by 60
percent. Also included in the expansion
is a new 3,350- square -foot spa,
an outdoor heated whirlpool and
additional parking
spaces.
Ariel Development
announced plans
for a 150 -room Hyatt
Place in SeaTac.
Located near Angle
Lake, this
$25 million development is expected to
be completed in 2016.
Home2 Suites by Hilton is slated to
open in Tukwila in June 2015 with 139
rooms.
A 140 -room Residence Inn by Marriott
will be developed on Angle Lake, likely
in 2017.
The $45 million, eight -story Artemis
Hotel is wrapping up construction
in Des Moines. The 238 -room hotel
complex, hospitality and entertainment
facility is expected to be open in 2015
and carry a Sheraton flag.
A 19 -story Washington Place hotel and
residential tower will be constructed in
Tukwila. The 418,000- square -foot,
$120 million tower will include 370
market -rate apartments, a 189 -room
business -class hotel and a 90 -seat
restaurant.
SeattleSouthside.com - 9
AP
drAPP
PROGRESS
MARKETING & COMMUNICATIONS
The marketing and communications department promotes Seattle Southside as
the perfect destination for practical travelers through implementation of consistent,
targeted, proactive, cost - effective marketing and media programs.
1. Demand Generation — Increase
hotel occupancy through compelling
domestic marketing programs. Attract
more groups, leisure travelers and
business travelers.
2. Perception— Continue heightening
awareness about Seattle Southside as
a destination and generate positive
perceptions.
3. Interaction — Enhance engagement
on Seattle Southside website and social
networks.
10 - 2015 Annual Report
Redesign of the Seattle Southside
Travel Planner resulted in a visually
stunning magazine promoting
Seattle Southside as an ideal tourist
destination.
With many lifestyle articles and
vivacious photography showcasing the
region, this updated marketing piece
will be an even stronger call to action
for potential visitors.
The Travel Planner
is distributed
through requests
received online,
over the phone,
at trade shows,
partner locations
and Visitor Centers.
r'Y ating ^nifty is rceptir►nc
Seattle Southside conducted a scaled
back branding campaign and focused
heavily on introducing the Seattle
Southside Visitor Center at Westfield
Southcenter. This campaign significantly
increased awareness about the Visitor
Center and directed thousands of
visitors to the new location.
Through outreach, interviews and
media coordination, including a cover
story in the Puget Sound Business
Journal, more
than 90 million
impressions were
received, resulting
in thousands of
dollars' worth of
positive press
coverage.
E —
rlAgitc 1 AIMtte:arnr- tA,rtrt�
SeattleSouthside.com received the
most web visits ever in 2014. Unique
visits to the website increased 8.5
percent. Currently a digital conversion
study is underway to evaluate the
effectiveness of the website.
Social media continues to be an
important communication facet and, in
2014, Seattle Southside's engagement
increased more than 5 percent.
600,000
500,000
400,000
300,000
200,000
100,000
0
Unique Visits
2010 2011
2012 2013 2014
SeattleSouthside.com - 11
do)
BUSINESS fF \IFI 0PMENT
PROGRESS
Seattle Southside provides key leadership and helps build integrated marketing
initiatives and resources critical in connecting and motivating key visitor segments.
1. Prospecting Opportunities &
Acquiring Business — Establish Seattle
Southside as a value- driven, quality
destination for groups hosting events
for 10 to 200 people, with an emphasis
on increasing off -peak bookings.
2. Support Sales at Businesses and
Hotels— Support the marketing and
sales needs of Seattle Southside
tourism businesses and hotel sales
teams to convert opportunities to
booked business.
3. Build Community with Similar
Organizations —Build relationships with
the regional tourism network to create
awareness about Seattle Southside
and take advantage of partnership
opportunities.
12 - 2015 Annual Report
Business development efforts
contributed to room nights and
meetings booked for 2014 and beyond.
This was accomplished through sales
efforts that included attending sales
missions with 246 total appointments,
including: Washington Society of
Association Executives, National Tour
Association, MPI Cascadia, Connect
Marketplace, Collaborate Marketplace,
Reunion Friendly Network, Go West
Summit.
Other activities
®included coordinating
four familiarization trips
with 43 tour operators
and meeting planners and participating
in 17 client site inspections.
IR„ c•ss Support
In 2014, Seattle Southside implemented
Simpleview, a new customer
relationship management (CRM) tool
to better serve associates and clients,
which is also used by other destination
marketing organizations.
This tool will allow better tracking for
client leads, visitor requests, marketing
and public relations activities and
reports on ROI.
L
1
It will eventually
enable hotels and
associates to go
online to an extranet
to add promotions,
photos, respond to
leads, etc.
Go West Summit brought record -
breaking numbers to the Seattle -
Tacoma region with more than 600
attendees, 10,000 meetings and
international exposure for the state. The
triumph of regional partnership hosting
Go West Summit put the Northwest on
the international stage —
preparing the region for
the upcoming 2015 U.S.
Open Championship.
ti
Seattle Southside participated in a
delegation of 30 travel partners from
around the state at the National Tour
Association tradeshow in New Orleans.
Staff took appointments with top -
producing travel professionals at the
show, which attracted tour operators
and suppliers from all over the world.
SeattleSouthside.com -13
illlrol PROGRESS
VISITOR SERVICES
Seattle Southside strives to increase visitor spending through enhanced concierge
services and engaging customer experience. Maintaining relationships with
local community and stakeholders is important for increased cross - promotion
opportunities.
1. Visitor Centers — Operation of two
Visitor Centers providing personalized
concierge assistance to visitors
requesting services of Seattle
Southside in person, by phone or email.
2. Local Businesses and Residents —
Work with local industry businesses
to promote and increase tourism
spending. Build awareness within the
local community.
3. Interns and Volunteers— Continue
to build and nurture relationships with
local community through universities
and community colleges.
4. Seattle Southside Shuttle— Manage
service and partnership.
14 - 2015 Annual Report
Funded by the Tukwila lodging tax,
the new Westfield Southcenter Visitor
Center continues to engage travelers
and local residents alike. In 2014, point -
of- purchase ticket sales increased by
33 percent.
Seattle Southside maintains its
sustained focus on promoting the area
as an ideal home base for travelers to
explore the Pacific Northwest and being
a tourist in your own backyard.
Funded by SeaTac lodging dollars, the
Seattle Southside Express shuttle offers
free transport for SeaTac hotel guests
to Westfield Southcenter Mall. This
service has proven critical to building
brand awareness and showcasing
Seattle Southside as a remarkable
home to many dining and shopping
options.
Dedicated to enhancing the guest
experience and increasing visitor
spending, a customer survey was
implemented to capture customer
expectations and spending. More than
27,000 hotel guests ride the shuttle
annually.
Seattle Southside continues to work
with local and state educational
institutions to facilitate student learning
opportunities outside the classroom.
Students interested in an exciting
career in the field of travel and
tourism, and looking to gain practical
experience
while developing
relationships with
leaders in the
field, are offered
paid internships
that provide real -
world work experience.
Seattle Southside values investing in
industry leaders of the future.
SeattleSouthside.com - 15
er
; PROSPER
r,
•
16 - 2015 Annual Report
OVERNIGHT
VISITORS
HOTEL NIGHTS DIRECTLY
ATTRIBUTED TO SEATTLE
SOUTHSIDE EFFORTS
IN TRAVEL
SPENDING
HOSPITALITY EMPLOYEES
IN STATE & LOCAL
TAXES
TOURISM SAVES THE AVERAGE
HOUSEHOLD IN TAXES
ANNUALLY
SEATTI .E SOUTHSIDE TRAVEL TRENDS
The preliminary 2014 impact estimates for Seattle Southside released from Dean
Runyan and Associates documents the economic significance of the travel industry
in the Seattle Southside.
The research reveals travel spending in Seattle Southside increased by 9.5 percent.
Earnings, employment and travel - generated tax receipts also increased significantly.
This was the fourth consecutive year of strong growth in the Seattle Southside travel
industry.
SeattleSouthside.com - 17
Tax Receipts
$ Millions
Spending
$ Millions
Earnings
$ Millions
Employment
Local
State
Total
2013
566.6
169.8
4,650
27.3
32.5
59.8
2014
620.3
184.1
4,840
30.3
35.5
65.8
% Change
+9.5
+8.4
+4.1
+11.0
+9.3
+10.0
SeattleSouthside.com - 17
I
drA4
PROSPER
Lodging sales (in current dollars)
exceeded $200 million in 2014, the
highest seen since Dean Runyan and
Associates have been reporting for
Seattle Southside.
$250
$200
0
$150
0
$100
0
0)
•O
J $50
$o
1
1
1
10 11 12 13 14p
LODGING SALES
(8 Million)
18 - 2015 Annual Report
The charts below break out lodging
sales and travel spending by city in
Seattle Southside. Although Tukwila
has the greatest estimated visitor
spending, SeaTac has 70 percent
of all lodging sales. However, its
share of visitor - related sales in food
services, entertainment and retail are
comparatively smaller.
Therefore Seattle Southside survives
and thrives because of the regional
partnerships working in conjunction
between each city's strengths.
Des
Moines,
$2.2
SeaTac,
$146.4
LODGING SALES BY CITY
Travelers who come to Seattle
Southside tend to stay overnight in paid
accommodations. And travelers who
stay in commercial lodging typically
spend more and have the greatest
economic impact.
Des
Moines,
$33.2
TRAVEL SPENDING BY CITY
Eighty percent of all visitor nights in
Seattle Southside are attributable to
hotel /motel stays. This percentage is
much greater than for King County and
Washington State.
Seattle Southside
King County
Washington State
0% 20% 40% 60% 80% 100%
HOTEL /MOTEL VISITOR NIGHTS 2014p
(Percentage of All Overnight)
SeattleSouthside.com -19
Travel Party
Day
Trip
Party
Size
Length
of Stay
Hotel, Motel
$390
$922
2.1
2.4
Other
Overnight
$72
$266
2.0
3.7
All Overnight
$339
$851
2.1
2.5
Des
Moines,
$33.2
TRAVEL SPENDING BY CITY
Eighty percent of all visitor nights in
Seattle Southside are attributable to
hotel /motel stays. This percentage is
much greater than for King County and
Washington State.
Seattle Southside
King County
Washington State
0% 20% 40% 60% 80% 100%
HOTEL /MOTEL VISITOR NIGHTS 2014p
(Percentage of All Overnight)
SeattleSouthside.com -19
PROSPER
The estimate of all overnight visitor -
nights (the number of nights that all
individual visitors stayed in Seattle
Southside) is shown below.
The overall trend in visitor volume
corresponds to the trends in travel
spending and related impacts.
Visitor air arrivals (domestic only) to
Seattle- Tacoma International Airport
have also increased for the fifth year in
a row.
rn
0
z
3.8
3.7
3.6
3.5
3.4
3.3
3.2
3.1
3.0
10 11 12 13 14p
ALL OVERNIGHT PERSON - NIGHTS
20 - 2015 Annual Report
Just five years ago the Seattle
Southside hotel market lay in the
depths of recession, with low rates
of occupancy and declining revenue.
The contrast with current market
performance could not be more
striking, as room prices rise and
occupancy rates approach 80 percent.
Seattle Southside is at the peak of
what is typically an eight -to- ten -year
cycle characterized by steady growth
in demand and occasional surges
in supply. Depending on the pace of
construction, occupancy rates could
reach a trough in 2017 or 2018, with the
next peak expected around 2022.
5.5
C
0
E 5.0
0
0 4.5
4.0
1
10 11 12 13 14p
VISITOR AIR ARRIVALS AT SEA -TAC AIRPORT
(Domestic Fligths)
As referenced earlier in the H2R Market
Research Conversion Study, those
travelers who receive information from
Seattle Southside stay longer and
spend more within the destination. They
typically stay 3.54 nights and spend
$1,007.
Seattle Southside
Interaction
Average Traveler
Visitor Spend
$860 $880 $900 $920 $940 $960 $980 $1,000$1,020
Occupancy rates also are influenced
by room process. During the recession,
many hotels offered significant
discounts, drawing guests away
from what had been more affordable
alternatives. With occupancy now
above pre- recession levels, property
managers have become more
aggressive, raising rack rates and
limiting discounts.
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
Overall Percent Change
2014
❑Occupancy •ADR ■RevPAR
SeattleSouthside.com - 21
40)
PROSPER
TOURISM RETURN ON INVESTMENT
2014 Year Performance
Direct Spend
Groups
$1,997,486
Website Hotel /Packages
Conversions
$9,228,114
Visitor Center Fulfilment
$12,662,018
Website Booking Engine
$195,832
Visitor Center Reservations
$153,235
Shuttle Riders Spend
$4,074,300
TOTAL
$28,310,985
*Note: Stats from Dean Runyan & Associates Travel Impact Report
February 2015, 2002 Shuttle Survey and H2R Conversion Study 2014
Seattle Southside's 2014 budget: $1,524,154
-ieturn on investment: t1 : $16.br
22 - 2015 Annual Report
LODGING TAX ADVISORY COMMITTEES
City of Des MoineE
Shamsur Bhuiyan - Marina Inn
Tajinder Chahal - SeaTac Valu Inn
Jill Andrews - Destination Des Moines
To Be Appointed - Representing Des Moines City Council
City of Tukvv ww-
Kate Kruller - City Council President & Committee Chair
Maureen Huffman - Embassy Suites Seattle Tacoma Intl. Airport
Jim Davis - DoubleTree Guest Suites
Miesa Berry - Homewood Suites by Hilton
Kelly McMeekin - Albert Lee Appliances
Ben Oliver - Starfire Sports Complex
Carol Kolson - Southwest King County Chamber of Commerce
Tony Anderson - City of SeaTac Deputy Mayor
Jeff Bauknecht - The Museum of Flight
Roger McCracken - McCracken & Associates
Cathy Heiberg - Boysen & Boysen, LLC
Frank Welton - DoubleTree & Hilton Hotels
Wendy Morgan - Highline SeaTac Botanical Garden
Tom Zett - Super 8
Caroline Curtis - Hotel Concepts BMI Hospitality Management
SeattleSouthside.com - 23
SE/TTLEEh.V
SOUTHSIDE • •
206.575.2489 1 3100 S. 176th St. Seattle, WA 98188 I SeattleSouthside.com