Tourism Promotion Areas
October 22, 2014
Presented by:
Becky Bogard, Bogard & Johnson LLC, facilitator
George Sharp, Olympia-Lacey-Tumwater Visitor and Convention Bureau
Katherine Kertzman, South Seattle Regional Tourism Authority
Tourism Promotion Areas
• What is a TPA?
• Why is it effective?
TPA Basics
• Grew out of need for more tourism marketing funds for
convention centers – origins in Spokane
• Passed by legislature in 2003 – RCW 35.101
• Upon agreement of 60% of hoteliers and approval by
appropriate local legislative authority, TPA is formed
• Only hotels with more than 40 rooms eligible to participate
• Fees may be up to $2 per room night and can be different
within the TPA
• Legislative authority contracts with tourism destination
marketing organization or a similar organization to administer
the program
• Upon petition, hotels may dissolve TPA
An Alternative –
Parking and Business Improvement Area
• Been in statute since 1971 and amended several times –
RCW 35.87A
• Often used to generate funds for downtown cleanup
programs
• Seattle used it to generate funds for tourism marketing
• Similar process to TPA for formation and dissolution
• Must show benefits to specific businesses included in
program
• No statutory limit on fees and tourism businesses other
than hotels could be included
The Thurston County Experience
George Sharp, Executive Director
Olympia-Lacey-Tumwater
Visitor and Convention Bureau
Thurston County Tourism
Promotion Area Background
• Olympia Lacey Tumwater Visitor and Convention Bureau staff and board
began discussion with area hoteliers in 2003 to establish a TPA
• Over the years elected officials and VCB board met with hoteliers to
establish TPA
• 2010 TPA stalled do to lack of confidence in the VCB to administer the
program
• 2011 TPA discussion renewed with new Executive Director hired, budget
developed, signature gathering process began and VCB drafted all
documents necessary for establishment of TPA (Petition, Interlocal
Agreement, Contract)
• 2011-2013 Meetings with Cities of: Olympia, Lacey, Tumwater and Yelm
and Thurston County to create a interlocal agreement, continued
meeting with Thurston County Lodging Association on budget and
marketing plan
Thurston County Tourism
Promotion Area Background
• June 2013-60% of hoteliers sign petition to create TPA
• July 2013-County Commissioners agree to be the financial agency for
the funds. Ordinance Drafted, 30 day waiting period prior to hearing.
• November 2013 Ordinance approved, Department of Revenue
Notified
• April 1 2014, TPA funds begin being collected
• July 1, 2014 Contract established between Thurston County and VCB
for VCB to serve as the Tourism Promotion Area Manager
• July 10, 2014 First deposit received
Thurston County Tourism
Promotion Area Key Factors
• 60% of Hotels need to agree to establish TPA:
• Concerns were:
• $ fee per night, will consumers balk or make decision to go other
places (finding-no)
• Input into budget and marketing plan (worked with Lodging
Association and 7 member TPA commission to create budget)
• If it doesn’t work or not satisfied, can we kill it? (50% vote of hotels
collecting the fund can dis-established the TPA)
• Four Cities and County had to agree to work together and sign
the interlocal agreement and allow 1 jurisdiction have
authority over the funds
Thurston County Tourism
Promotion Area Key Factors
• County and VCB had to agree to contract for VCB to be the TPA
Manager (Hotelier insisted it be the VCB to be the TPA Manager)
• Seven member TPA Commission consisted of Hoteliers
recommended by the Thurston County Lodging Association to be
approved by the board of County Commissioners
• 75 day processing period by Department of Revenue before funding
can start being collected. Funding collection only begins at the
beginning of a quarter
• Trust, Integrity, Honesty, Personalities, Politics, Perseverance were
the key
• Results: Additional $760,000 available per year for Marketing
Thurston County for a total combined budget of $1,100,000.
• New funds used for Staff, Marketing, Public Relations, Product
Development with emphasis on meetings and the leisure market
Seattle Southside –
Innovative Structure
Katherine Kertzman, Executive Director
Southside Seattle Regional Tourism Authority
Current SSVS Revenue & Service Structure
Proposed Revenue & Service Structure
Proposed Revenue & Service Structure
Proposed Revenue & Service Structure
Questions?
Comments?
Discussion
Contact:
Becky Bogard, Becky@bogardjohnson.com
George Sharp, GeorgeSharp@visitolympia.com
Katherine Kertzman, Katherine@seattlesouthside.com
Diane Schostak, Diane.Schostak@gmail.com