HomeMy WebLinkAboutCOW 2015-11-23 Item 4C - Discussion - 2016 Lodging Tax Funding OpportunitiesCOUNCIL AGENDA SYNOPSIS
Meet. ttg Date
Prepared by
11/23/15
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ITEM INFORMATION
ITEM No.
99
STAFF SPONSOR: BRANDON MILES
ORIGINAL AGENDA DATE: 11/23/15
AGENDA ITEm TITLE
2016 Lodging Tax Funding Opportunities
11/23/15
Motion
Ai ig Date
[i Resolution
At/s Dale
Ordinance
AN Date
IIIJ Bid _zilvard
Ai, Dale
Public 1-lean'ng
Aft DaI
Other
M IA Date
CA'11GORY a. Disaithon
Akg Date
SPONSOR Council Mayor Li I-1R 0 DCD
Finance L ITirc IT El P&R Poic NV
SPONSOR'S The creation of the Tourist Promotion Area, and the funding associated with it, frees up
SUMMARY the City's lodging tax funds for other potential uses. Staff has been working with various
Tukwila businesses on the creation of the Southcenter Marketing Partnership, with a goal
of attracting more day tourists to visit the City. The purpose of the briefing is to introduce
several of the possible campaigns that could be used to bring more people to the City. No
decisions are needed at this time.
REVIEWED BY 0 COW Mtg. El CA&P Cline 0 F&S Cmte Li Transportation Cmte
Utilities Cmte LI Arts Comm. El Parks Comm. 0 Planning Comm.
DALE: N/A COMMITTEE CHAIR: N/A
RECOMMENDATIONS:
SPoNsoR/ADmIN.
COMMITTEE
Mayor's Office Economic Development
N/A
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$N/A $N/A $N/A
Fund Source: LODGING TAX, 101 FUND
Comments: No expenditure request at this time.
MTG. DATE
RECORD OF COUNCIL ACTION
11/23/15
MTG, DATE
ATTACHMENTS
11/23/15
Informational Memorandum dated 11/17115, with attachment
99
TO:
City of Tukwila
Jrm Haggerton, Mayor
INFORMATIONAL MEMORANDUM
Mayor Haggerton
Committee of the Whole
FROM Brandon J. Miles, Economic Development Liaison
DATE: November 17, 2015
SUBJECT 2016 Lodging Tax Funding Opportunities
ISSUE
A briefing on 2016 Lodging Tax Funding Opportunities. No decisions are required at this time
BACKGROUND
The City collects a 1% lodging tax on certain qualifying overnight stays in paid accommodations
(hotels/motels) in the City. State law limits the use of these funds to tourist promotion. A tourist
can be an overnight guests or a day visitor. The adopted 2015/2016 budget estimates that the
City will receive approximately $630,000 in lodging tax funds in 2016.
Several years ago, the Legislature amended the applicable RCWs regarding the approval
process for use of lodging tax. The City's Lodging Tax Advisory Committee must review any
request, even by the City, to use lodging tax funds. The Committee then forwards a
recommendation to the City Council for its review and consideration. The City Council can
accept or reject the recommendations of the Committee; however, the City Council cannot
adjust the individual amounts recommended by the Committee. Furthermore, the City Council
could not fund an activity that the Committee recommended not be funded.
Typically, a majority of the City's lodging tax funds have been used to support staff and activities
at Seattle Southside Visitor Services (SSVS). Through interlocal agreements, SSVS provides
regional marketing for the cities of Tukwila, SeaTac, and Des Moines'. SSVS is a City division
within the Office of Economic Development and currently has an annual budget of over $1.4
million, with funding provided by the cities of Tukwila, SeaTac, and Des Moines.
Last year the cities of Tukwila, SeaTac, and Des Moines approved an agreement and formed a
tourism promotion area (TPA) that encompasses the geographical boundaries of the three
cities. The TPA formation allowed for an additional fee to be charged of $2 per night per room in
hotels with at least 90 rooms. The SSRTA estimates that the TPA special lodging charge will
generate just over $3.57 million in revenue in 2016. Per the TPA formation agreement, the TPA
funds will be administered by a newly created public development authority2 called the Seattle
Southside Regional Tourism Authority ( SSRTA). Most of the functions of SSVS, as a City
division will transfer to SSRTA. Tukwila has provided notice to the cities of SeaTac and Des
Moines of its intention to cease operation of SSVS effective December 31, 2015. On January 1,
2016 SSRTA will be the lead in marketing Tukwila to potential overnight guests.
The City of Kent had also been part of SSVS, but has since withdrawn.
2 The Public Development Authority was charted by the City of SeaTac.
101
INFORMATIONAL MEMO
Page 2
DISCUSSION
The creation of the TPA, and the funding associated with it, frees up the City's lodging tax funds
for other potential uses. Next year, per the TPA formation agreement, the City has agreed to
consider providing $337,500 in lodging tax funds to SSRTA3. The lodging tax funds, plus the
TPA fee, and lodging tax funds from the cities of SeaTac and Des Moines will provide just over
$4.66 million in funds to be used by SSRTA to attract overnight visitors. Besides SSRTA, the
City will likely be asked to provide funding to the Museum of Flight and Starfire Sports. Table 1
below outlines revenue, potential funding, and remaining funds in 2016.
Table 1: Revenue and Expenditure of Lodging Tax Funds in 2016
Estimated Revenue:
$630,000
SSRTA Allocation
($337,500)
($35,000)
Museum of Flight
Starfire Sorts
$25,000
Unallocated Revenue:
$232,5004
The intent of tonight's special presentation is to discuss staff concept for use of the remaining
funds in 2016. Because the new SSRTA, operating as Seattle Southside, will primarily focus on
attracting overnight visitors, city staff has begun forming the Southcenter Marketing Partnership
(SMP) to focus on "day visitors." The primary purpose is to increase sales revenue for Tukwila's
retail, restaurant, and entertainment organizations while increasing tax revenue and improving
the City's overall image.
The reason for this focus is because, unlike the City of SeaTac, the City of Tukwila is less
dependent on overnight visitors for tax revenue. Most spending at area restaurants, retailers,
and clothing stores occurs from day visitors. A "day visitor " is someone able to drive to the
Tukwila- Southcenter area within one hour. This could be people who live, work, or are traveling
in the area.
Over the last three months Economic Development staff has met with over a dozen businesses,
including Westfield Southcenter, Starfire Sports, Seattle Sounders FC, Odin Brewery, and
Museum of Flight, to discuss potential strategies to 1) bring more day visitors to the City and 2)
to encourage those already here to stay longer and spend more money.
Attached with this memo is a document entitled, "Southcenter Marketing Partnership: Strategy
Review ". The memo outlines six potential marketing strategies that staff identified after meeting
with various stakeholders. Staff proposes that the first year of the Partnership be about building
a shared mission, vision, and plan with the SMP businesses, creating a website, logo and social
medial presence, implementing at least one of the marketing campaigns, and sponsorship of
several events to bring people to the area.
The funding must be reviewed by the City's Lodging Tax Advisory Committee
and approved by the City Council.
4 Special note: These funds do not include the ending fund balance for 2015,
which is estimated in the adopted 2015/2016 Budget to be just over $389,000.
W:12015 Info Mernos\LTAC.doc
102
INFORMATIONAL MEMO
Page 3
Table 2: Proposed Marketing Cam DaiQns
#
Marketing Strategy
Goal
Notes
Family Fun in Tukwila - Southcenter
increase revenue at family
oriented activities (Family
Fun Center, I -Fly, Starfire,
and Museum of Flight),
restaurants and family
oriented retailers.
Promotion of the
various family oriented
activities in the Tukwila -
Southcenter area
2.
Day Meeting, Team Building, and Day
Conference Focus '
Increase rental revenue at
area hotels and catering
revenue. Look for ways to
connect with consumers
to bring them back to
Tukwila - Southcenter.
As travel times to
Seattle and Bellevue
increase from south
King County there is an
opportunity to promote
Tukwila - Southcenter as
a convenient option for
day meetings.
3.
Great Dining in Tukwila - Southcenter
Increase revenue at
Tukwila - Southcenter
restaurants.
Tukwila - Southcenter
has one of the highest
concentrations of
restaurants. It offers
easy and convenient
dining options.
4.
Sport and Event Fans
Increase revenue at
Tukwila - Southcenter
restaurants and retailers
focused on sports fans.
Many Seahawk,
Sounder, Mariner,
Husky, Storm and
concert goers past
through Tukwila -
Southcenter on their
way to games /events in
Seattle. Yet, often times
our businesses do not
see fans pre and post
event_
5.
Airport Related Patrons
Increase revenue at
Tukwila - Southcenter
restaurants, retailers, and
activity centers on people
on their way to and from
SeaTac Airport and those
with long layovers.
This year SeaTac is
estimated to have its
busiest year ever, with
45 million passengers
passing through the
Airport. August of 2015
was the busiest month
on record with 4.4
million passengers.
Most of these
passengers pass by
Tukwila - Southcenter to
and from the Airport.
6.
Furnishing Stores
Increase revenue at
Tukwila- Southcenter
furniture and furnishing
stores.
Tukwila - Southcenter
has one of the largest
concentrations of
furniture and furnishing
stores in the State,
which presents a great
opportunity for
consumers to
comparison shop.
W 12015 Info MemosLTAC.dac
103
INFORMATIONAL MEMO
Page 4
Table 3: 2016 Potential Marketing Efforts
Item
Marketing
Campaign
Focus
Note
Website /Brand
Development
All
This will be a separate website from the City's
website and will have less of a government feel.
It will also promote restaurants and activities in
the area. The cost includes photography. This
cost will be drastically lower in year 2
Focus is on people living in Seattle, south of
Bellevue along 405, Tacoma, and people
staying at hotels throughout the Seattle Metro
area.
Print and digital ads in
Puget Sound focused
consumer magazines
and social media for
example Seattle Met,
Seattle Mag, Visit
Seattle, Visit Bellevue,
and 405.
2, 4, 5, and 6.
Print and digital ads in
business focused
publications and social
media
2 and 3.
Goal is to communicate with businesses and
business travelers.
Print and digital ads
with the Reporter
Newspapers and
adjacent city
magazines.
1, 3 and 6.
Focus is on consumers in neighboring
communities.
Creation of day visitor
guide.
2.
Cost could be spread out over multiple years.
Once created it could be used for a few years.
Sponsorship of Seattle
Restaurant Week and
Dine Around Seattle.
3.
These are regional marketing efforts we can tie
into.
General Sponsorships
and Engagement
Agreements
(Sounders, Seahawks,
Mariners, Storm,
WIAA, and college
sports teams.
1, 3, and 4.
Bringing events to Tukwila- Southcenter and
having access to joint media.
W:I2J15 Info Memos \LTAC doc
104
INFORMATIONAL MEMO
Page 5
No decisions need to be made tonight regarding what campaigns will be funded and the total
allocation of funds. The purpose of tonight's discussion is to introduce the Southcenter
Marketing Partnership and present the available opportunities for marketing to day visitors. The
following outlines staff proposed process for lodging tax funding for 2016:
• November 23, 2015: Initial briefing to the City Council. Discussion only, no decisions
needed;
• December, 2015: Initial briefing to the Lodging Tax Advisory Committee. Briefing
provided on third party use of funds (Museum of Flight, Starfire, SSRTA, no decisions
needed;
• January, 2016: Lodging Tax Advisory Committee reviews City's application for use of
LTAC funds.) Other applications by third parties will also be reviewed at this time.
• February, 2016: Council Committee Review of applications to use of lodging tax funds,
including funds to be used by the City.
• February, 2016: Committee of the Whole review of applications to use lodging tax
funds, including City funds to be used by the City.
• February /March 2016: Formal approval of applications for use of lodging tax funds.
FINANCIAL IMPACT
City staff is proposing that all lodging tax funds collected in 2016 be spent during the year. This
will result in a total expenditure of approximately $630,000. At this time, staff is not proposing to
utilize any of the ending fund balance in 2015, estimated at just over $389,000.
The following table breakdown total lodging tax funding and total funding for overnight and day
tourists:
RECOMMENDATION
Information only.
ATTACHMENTS
Southcenter Marketing Partnership Strategy Review
062015 info Memos\LTAC.doe
105
Overnight Tourists
Day Tourists
Organization Responsible
SSRTA
City of Tukwila
Available TPA Funds
$3,574,356
N/A
City of Tukwila Lodging Tax
Funds
$337,500
$232,500
City of SeaTac Lodging Tax
Funds
$715,000
N/A
City of Des Moines Lodging
Tax Funds
$20,000
N/A
Other Revenue
$20,000
N/A
Total:
$4,666,856
$232,500
RECOMMENDATION
Information only.
ATTACHMENTS
Southcenter Marketing Partnership Strategy Review
062015 info Memos\LTAC.doe
105
06
Draft: November 3, 2015
Southcenter Marketing Partnership
Strategy Review
Introduction
Next year, the City of Tukwila, working with Tukwila- Southcenterl area restaurants, hotels, retailers,
entertainment businesses, and property owners, will launch the Southcenter Marketing Partnership
( "Partnership "). The primary goal of the Partnership is simple, to increase revenue at Tukwila -
Southcenter area businesses through a coordinated marketing program for the area. A secondary goal of
the Partnership is to improve the perception and image of Tukwila - Southcenter in the region.
"Marketing" will involve a combination of efforts, such as ad buys, event promotion, product
development, and targeted customer engagement.
Competitive Environment
Tukwila - Southcenter is one of three regional entertainment districts in the area. The other two being
downtown Seattle and downtown Bellevue. All three entertainment districts cater to consumers outside
of their respective urban cores. Both downtown Seattle and downtown Bellevue have coordinated
marketing campaigns targeted to day tourists in the Puget Sound region. Tukwila - Southcenter does not.
Take for example the December 2014 edition of Seattle Met Magazine. In the magazine there is a large
pullout ad called "Holidays in Seattle." The Holidays in Seattle campaign was sponsored by the
Downtown Seattle Association, Metropolitan Improvement District (quasi - public agency), Seattle Center
(part of the City of Seattle), and Visit Seattle. The events and activities included in the pullout are clearly
directed at day tourists.
In that same edition of Seattle Met Magazine is an ad placed by the Bellevue Collection. The Bellevue
Collection includes Bellevue Square, Bellevue Place, and Lincoln Square. These properties are all owned
by Kemper Development. Kemper Development also sponsors and organizes events to bring people to
downtown Bellevue.
University Village, another competitor to the Tukwila - Southcenter area, is also aggressively positioning
itself as an activities and events center in addition to shopping. Other competitors in the area include
Renton Landing and Kent Station.
Possible Strategies
Over the last year Economic Development staff has met with over two dozen Tukwila - Southcenter area
hotels, restaurants, property owners, and retailers to explore possible strategies to drive more day
tourists to the Tukwila - Southcenter area.
These strategies are provided for discussion and brainstorming only. The strategies are in no particular
order and financial and logistical issues will limit the number of these strategies implemented in the first
year.
' The "Tukwila - Southcenter" name is a placeholder for now. Working with our stakeholders we will determine the
most appropriate name for the area commonly referred to as "Southcenter."
1
107
Draft: November 3, 2015
The next step will be to convene a small workgroup of Tukwila - Southcenter area retailers, hoteliers, and
other stakeholders to discuss the campaigns listed below, brainstorm other possible campaigns, and
gain a commitment to move forward in 2016 with the Southcenter Marketing Partnership.
The recommendations of the workgroup will be presented to the Lodging Tax Advisory Committee for
final review.
Possible Campaigns:
1. Family Fun in Tukwila - Southcenter
2. Day Meeting, Team Building, and Day Conference Focus
3. Great Dining in Tukwila - Southcenter
4. Sport and Event Fan Campaign
5. Airport Related Patrons
6. Furnishing Stores
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Draft: November 3, 2015
Campaign #1, Family Fun in Southcenter
Overview
Promote Tukwila - Southcenter as a safe, value oriented destination for family friendly activities.
Segmentation
Multiethnic and multigenerational families, with household incomes not exceeding $150,000, located
within a one hour drive time of Tukwila - Southcenter.
Goals
When
• Increase sales at activity businesses such as Acme Bowl, Family Fun Center, iFly, Round 1
and movie theaters.
• Increase sales at family friendly restaurants like Red Robin, Rain Forest Cafe, and
Stanford's.
• Increased sales at family focused retailers, such as Macy's, Nordstrom, JC Penny, Old
Navy, Gap, etc.
• Help brand Tukwila - Southcenter as the premier south end destination for family friendly
fun.
• Ongoing, with an emphasis in the spring and summer of 2016.
Possible Campaign Slogans
• Make a day of it.
• Where the fun's at.
• Family /Friendly /Fun
• Next Door Adventures
Media
1. Website
2. Facebook, including a paid Facebook campaign
3. Twitter
4. News stories (Seattle Times, Seattle Magazine, Seattle Met Magazine, broadcast, etc.).
5. Press Release
6. Ads buys in the Reporter newspapers, family- focused publications (Seattle Child, Red Tricycle and
Parent Map) and the Seattle Times, Tacoma News Tribune, and The Olympian weekend section
(these ads will focus on family friendly activities). Some of these publications also allow us to
showcase free activities at no charge.
7. Sounders FC media presence.
8. Partners will promote on their social media and other channels
3
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Draft: November 3, 2015
Tie Ins /Events /Third Party Events
1. Restaurants deals targeted at families, such as kids eat free.
2. Sounder player signing event. This would be a first team player. Donde Estas Osvoldo?
3. Contest
4. Package deals, such as the Tukwila Triple Threat currently available.
Campaign #2, Day Meeting, Team Building and Day Conference Focus
Overview
Tukwila - Southcenter's location makes it an excellent location to host day conferences and conventions,
especially for workforces that are spread around Tacoma, Seattle, and Bellevue.
Notes
• Over 120,000 people work within three miles of the Tukwila - Southcenter area.
• 1 -5/1 -405 have on average 140,000 cars passing by daily.
• Traffic congestion on 1 -5 and 1 -405 makes getting to Seattle and Bellevue difficult.
• Tukwila - Southcenter has great access to transit and easy access to SeaTac Airport.
• Traffic congestion to Seattle and Bellevue is only getting worse.
Segmentation
Businesses and groups within a 30 minute drive of Tukwila - Southcenter. Business and groups that are
spread out, where Tukwila - Southcenter can be a central meeting place for all attendees.
Goals
When
• Increase rental and catering revenue at Tukwila - Southcenter area hotels.
• Increase the number of day conferences and conventions within the City.
• Provide linkages to restaurants and other activities that attendees can do when they
attend.
• Identify ways to bring people back to Tukwila - Southcenter after their meeting or
conference is complete.
• Help brand Tukwila - Southcenter as convenient and affordable meeting place for
businesses.
• Discuss with hotels to identify timeframe.
Possible Campaign Slogans
• It's your "Seattle" meeting without the "Seattle" hassle.
Media and Outreach
1. Website
2. News stories (Seattle Times, Seattle Magazine, Seattle Met Magazine, broadcast, etc.).
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Draft: November 3, 2015
3. Press Release
4. Ads buys in business publications, such as Seattle Business, Daily Journal of Commerce, Puget
Sound Business Journal, etc.
5. Outreach and build connections with event planners, businesses, area chambers of commerce.
6. Meeting planner guide, feature information on event spaces in the area (hotels), catering, etc.
7. Sponsorship of events in the area to build awareness about meeting space possibilities in the area.
8. Creation of a meeting planner publication, including hotels, caters, and other day meeting
locations.
Tie Ins /Events/Third Party Support
1. Have gift certificates and goodies for day meeting attendees. The goal is to encourage them to
visit restaurants in the area.
5
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Draft: November 3, 2015
Campaign #3, Great Dining in Tukwila - Southcenter
Overview
Promote Tukwila - Southcenter area restaurants, create buzz that Tukwila - Southcenter has great dining
options.
Notes
• Dozens of restaurants are located within one square mile.
• Many of the City's restaurants are family friendly and offer kid menus.
Segmentation
Goals
When
• The anti - foodie
• Families and family dining. This would include our more mainstream restaurants.
• Convenient place to meet friends or extended family
• Increase revenue at area restaurants.
• Increase brand awareness that Tukwila - Southcenter has great dining options
• Ongoing (work with restaurants to understand downtimes for target promotion).
Possible Campaign Slogans
• Tukwila - Southcenter: Something for Everyone
• Who knew!
• What's for dinner?
• Tukwila - Southcenter: Your Choice
Media and Outreach
1. Website
2. News stories (Seattle Times, Seattle Magazine, Seattle Met Magazine, broadcast, etc.).
3. Facebook and paid Facebook campaigns.
4. Twitter
5. Ad buys, both print and digital, Seattle Mag, Seattle Met, the Reporter publications, and adjacent
city custom publications.
6. Creation of a day visitor guide.
7. Inclusion of restaurants in Sounders around Southcenter promos.
8. Sports and Event media (Sounders, Seahawks, Mariners, Husky, concerts, etc)
Tie Ins /Events /Third Party Events
1. Family Dining Guide, included in the visitor guide.
2. Contest
3. Dine with your favorite Sounder
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Draft: November 3, 2015
4. Seattle Restaurant Week (only Stanford's participates now).
5. Enhanced Motorist Information Signs along freeways.
Campaign #4, Sport and Event Fan Campaign
Overview
Promote Tukwila - Southcenter as the place to be before and after games. Additionally, as a place to go to
watch sports teams that are on the road.
Notes
• Consumers attending sporting events tend to have high household incomes and a high amount
of disposable income.
• Thousands of fans drive through Tukwila - Southcenter on their way to games and events in
Seattle.
• The City's heavy rail and light rail stations are utilized by fans going to games in Seattle, yet
often they don't visit Tukwila - Southcenter's restaurants and /or retail establishments.
• Tukwila - Southcenter area restaurants appear not to be utilized for game viewing.
• Many sports teams offer attendees promotions to be club viewing establishments.
• Last year nearly 35,000 people viewed S2 and Sounder (US Open) soccer games at Starfire
Sports in Tukwila.
• Starfire has one million attendees per year.
Segmentation
• Sports fans traveling through the City (Seahawks, Sounders, Mariners, Huskies, Rat City,
etc) to attend events in Seattle.
• Soccer fans going to Starfire Sports.
• Local fans needing fun places to view games, both home and away.
• Concert goers.
• Away fans
Goals
• Increase revenue at area restaurants.
• Increase revenue at stores that sell team apparel (Sports Authority, Nordstrom, Macy's
Seattle Team Store, etc).
• Increase brand awareness that Tukwila - Southcenter is a great place to go before and
after events.
When
• During specific sport seasons.
Possible Campaign Slogans
• ? ? ??
7
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Draft: November 3, 2015
Media and Outreach
1. Website
2. News stories (Seattle Times, Seattle Magazine, Seattle Met Magazine, broadcast, etc.).
3. Facebook and paid Facebook campaigns.
4. Twitter
5. Ad buys, both print and digital, Seattle Mag, Seattle Met, the Reporter publications, and adjacent
city custom publications.
6. Formal sponsorship relationship with professional sports teams:
a. access their digital media;
b. official viewing parties; and
c. Ad placement in gameday programs, including programs for Portland Timber and
Vancouver Whitecap games;
7. Banner ads inside of the light rail station on TIB.
8. Access to Starfire's media
9. Parking vouchers at Starfire Sports (encourage people to visit restaurants for discounts)
10. Establish relationships with away team fan bases (both in their own cities and in the Puget Sound
region).
11. Sponsorship relationship with WIAA and community colleges.
Tie Ins /Events /Third Party Events
1. Collaborating with Starfire and the Sounders on a new scoreboard at the stadium. A scoreboard
that would allow advertising to fans at games and increasing brand awareness.
2. Support of the S2 shuttle
3. Dine with your favorite Sounder
4. Support for day events in the area (these are not necessarily overnight activities), such as the 787
run.
8
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Draft: November 3, 2015
Campaign #5, Airport Related Patrons
Overview
SeaTac Airport is the fastest growing airport in the country. Users of the airport pass through Tukwila -
Southcenter on their way to the airport. These users include locals; tourists staying at our hotels;
tourists staying in other areas of the region or state; and business travelers.
Notes
• In 2014, 37 million passengers went through SeaTac Airport.
• Tens of thousands of people drive by Tukwila - Southcenter on their way to the Airport
everyday.
• SeaTac serves as the US hub for many Asian airlines. Passengers from the east coast of
the United States often have 6 -10 hour delays before their connecting flights.
• Tukwila - Southcenter area businesses are investing in tourist related facilities.
• Conversations with some retailers indicate that some foreign travelers want to stock up
with clothes and other merchandise before heading back to their home countries.
Segmentation
Goals
When
• Locals on their way to and from the airport.
• Tourists staying in hotels in Seattle, Bellevue, and other cities; a stop on their way back
to the Airport.
• Business travelers staying in Seattle, Bellevue, and other cities; a stop on their way back
to the Airport.
• Travelers at SeaTac on day layovers at the Airport.
• Increase revenue at retailers and restaurants.
• Ongoing.
Possible Campaign Slogans
• Give yourself more time to get to the Airport.
• Forget Anything?
• Make us your last stop.
• Stock up before you fly home.
Media and Outreach
1. Website
2. News stories (Seattle Times, Seattle Magazine, Seattle Met Magazine, broadcast, etc.).
3. Facebook and paid Facebook campaigns.
9
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Draft: November 3, 2015
4. Twitter
5. Ad buys, both print and digital, Seattle Mag and Seattle Met.
a. Seattle Met is in 47 hotels, 13,175 rooms, and reaches 105,400 visitors in Seattle and the
Eastside.
6. Ad buys in visit Bellevue and visit Seattle
7. Ads inside of SeaTac Airport
8. Airline publication (maybe overkill)
9. Alliances with airlines
10. Ad buys in taxis.
Tie Ins /Events /Third Party
1. Explore operation of a shuttle from SeaTac Airport to Westfield Southcenter.
2. Enhance taxi service to and from Westfield Southcenter and SeaTac Airport.
3. UPS and Kinko Fed Ex (for when travelers need to ship their purchases back home)
116
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Draft: November 3, 2015
Campaign #6, Furnishing Stores
Overview
Tukwila - Southcenter contains one of the largest concentrations of furniture and furnishing stores.
Within a one mile area, there are over 30 furniture, appliance, and furnishing stores. Tukwila -
Southcenter offer a great opportunity for consumers to easily move from store to store to comparison
shop.
Notes
• Tukwila - Southcenter has one of the largest concentrations of furniture and furnishing
stores in the region;
Segmentation
Goals
When
• Locals, both homeowners and renters, within one hour driving time of Tukwila -
Southcenter.
• Emphasis on new homeowners
• Office furnishing purchasers
• Increase revenue at furniture, appliance, and furnishing stores.
• Ongoing
Possible Campaign Slogans
• Your home is waiting in Tukwila - Southcenter.
• One name, 30 stores for your home.
Media and Outreach
11. Website
12. News stories (Seattle Times, Seattle Magazine, Seattle Met Magazine, broadcast, etc.).
13. Facebook and paid Facebook campaigns.
14. Twitter
15. Ad buys, both print and digital, Seattle Mag and Seattle Met.
16. Ad buys in Chinese publications.
17. Ad buys in business focused publications (for office furniture)
11
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Draft: November 3, 2015
Tie Ins /Events /Third Party
1. Work with the developers of Washington Place to have model rooms when they are leasing their
units. Each model room would be sponsored by a home furniture store, with information provided
on the furniture and where to buy it.
4. Hosting events and sponsorship of events.
5. Restaurants could offer deals to furniture shoppers.
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2016 Lodging Tax Funding
Opportunities
Tukwila City Council
November 23, 2015
Background
• 1% lodging tax charged to overnight stays
in hotels /motels.
• 2016 Estimated Revenue, $630,000
• Per RCW 67.28.1816, funds can only be
"used...for tourism marketing, marketing
and promotion of special events to bring
in visitors..."
Lodging Tax
Background
• Most lodging tax funding was used to
support Seattle Southside Visitor Service
(SSVS).
• 2014, hoteliers in SeaTac, Tukwila, and
Des Moines formed a Tourism Promotion
Area (TPA).
• Additional $2 charge per night per room
applied.
Lodging Tax
Background
• Seattle Southside Regional Tourism
Authority (SSRTA), newly formed in 2015,
will take over most SSVS operations on
January 1, 2016.
• SSRTA will focus on overnight stays or
"heads in beds."
• Opportunities for Tukwila to focus on day
visitors, or "feet on the street."
Lodging Tax
Funding for Overnight Tourists
TPA Fee:
Tukwila Lodging Tax:
SeaTac Lodging Tax:
Des Moines Lodging Tax:
Other Revenue:
Total:
2015 Funding:
$3,574,356
$337,500
$715,000
$20,000
$20,000
$4.6 million
$1.2 million
283% increase
Lodging Tax
Lodging Tax Commitments
Estimated Tukwila Lodging
Tax Revenue: $630,000
$25,000 to Starfire
■ $337,500 to SSRTA
$35,000 to Museum of
Flight
Unallocated Funds: $232,500
Note: LTAC has not yet approved these expenditures.
Lodging Tax
Southcenter Marketing Partnership
Lodging Tax
Southcenter Marketing Partnership
• Focus is on "day tourist ".
• Day Tourist could be someone who lives, works,
stays, or travels within a one hour drive of Tukwila-
Southcenter.
• Primary goal is to increase revenue at restaurants,
entertainment establishments, and retailers.
• Increased sales means increase in sales tax for the
City.
• Secondary Goal is to improve the public perception of
Tukwila and the Tukwila- Southcenter area.
Lodging Tax
Tukwila Vicinity
• Diversity
• Center of it all.
• One of the busiest freeway
intersection in the State
• Near the fastest growing airport
in the country.
• Over 100,000 people work within
three miles of Tukwila -
Southcenter
• Light Rail Station
• Home of the Sounders and S2
• Westfield Southcenter
• Museum of Flight
• Over 200 restaurants
PNGc1 o n d
Seattle
lr
Bellevue
(r0
f
SeaTac
Federal Way
Lodging Tax
Why Day Tourists?
2014 Taxable Retail Sales (Per DOR)
Sales Source
Dining
Hotel /Motel
City of Tukwila
City of SeaTac
$188.6 million $145.8 million
$65.8 million
$191.5 million
Lodging Tax
Why Day Tourists?
2008/2009 Comparison, Taxable Retail Sales (Per DOR)
Year
Tukwila
Restaurants
Hotels /Motels
SeaTac
Restaurants
Hotels /Motels
2008
$152.1 million
$64.2 million
$117.8 million
$165.4 million
2009
Percent Change
$150.8 million -.88%
$52.9 million -17.64
$109.6 million
$133.2 million
- 6.95%
- 19.50%
Lodging Tax
Possible Marketing Campaigns
• Family Fun
• Day Meeting and Team Building
• Great Dining
• Sport and Event Fans
• Airport Related Patrons
• Furnishing Stores
Lodging Tax
How? Print, Digital, and Social Media
Seattle Met
Print
Print - Advertorial
Buckets
of Rain
NM.
1
i
Experience Tukwila
INCLUDED:
• Full Page (option to upgrade to 2 Page Spread)
• Photography
9 sea ttleMetropolitan • Interview /Advertorial
• Design /Layout
seatilemet.Com
Lodging Tax
How? Event and Sponsorships
Lodging Tax
How? Direct Marketing
Next Steps
• Lodging Tax Committee Discussion
December, 2015.
• Lodging Tax Committee Review of
Applications, early 2016.
• Council Review of Lodging Tax Funding
Requests, early 2016.
Lodging Tax