Tourism Enhancement Plan THE CHALLENGE Monterey County is a world class destination with a second class budget. The Monterey County Tourism Improvement District (TID) must be renewed by Dec 2023. It is effectively 0.6% and among lowest in the state. Total MCCVB budget (TOT+TID) is $7.5MM With this limited budget, Monterey’s ability to effectively compete for high value travel including groups and conferences, international visitors and other programs is significantly hindered.
Competitive Funding Analysis TID assessment rates in Monterey and competitors Stockton Huntington Beach Newport Beach Palm Springs Pasadena San Francisco Average Anaheim Portland Sonoma County Napa Valley San Diego Orange County Los Angeles San Luis Obispo Mendocino County Monterey
3.0% 3.0% 2.9% 2.3% 2.1% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 1.5% 1.0% 1.0% 0.6%
DMO budget per hotel room ($) 4.0% 4.0%
Newport Beach San Jose Santa Barbara Napa Valley Greater Palm Springs Sonoma County Laguna Beach San Francisco San Luis Obispo San Diego Monterey County Lake Tahoe
To overcome the severe disparity with top competitors, the destination must renew TID at a competitive level. Further, TOT jurisdiction investment is approx. $4 million per year and must be maintained.
SLO County was once $600K; new 1.5% assessment is nearly $10MM.
Opportunity to Grow The drive market will always be valuable, but fly and international markets offer significant opportunity to grow.
Spending per trip by origin market
Spending per night by origin market
$2,799 $561
The goal is to reach a $12.5 million budget (TOT+TID), which would move destination from the bottom to the middle of comp set. Growth in the TID is achieved by implementing a three-tiered flat rate assessment at rates moderately above the current two-tiered flat rates.
2,780
Competitors much better funded: Napa Valley and Sonoma (each 2% TID) combined have fewer rooms and nearly twice the budget.
THE SOLUTION A moderate increase in TID significantly increases ability to compete.
1,440 1,380 1,310 1,300 1,140 1,090 1,020 750 730 640 510
$455
$1,364 $959 Overseas
Domestic fly
$201
Domestic drive
Overseas
Business Conference
Domestic fly
$153 Domestic fly
Assessment Tier Descriptions as defined by Smith Travel Research
The TID District Plan will renew as a ten year plan starting July 1, 2023.
$
$
Limited-Service Lodging
Full-Service Lodging
Luxury Lodging
2022 BUDGET
• Lodging business that offers limited facilities and amenities, typically without a full-service restaurant.
• Lodging business with a wide variety of onsite amenities, such as restaurants, meeting spaces, exercise rooms, or spas.
• Lodging business with premium services and the highest quality ratings.
$7.5 MILLION 2023 BUDGET
$12.5 MILLION SeeMonterey.com
1.50
Current Levels:
1.00
4.50
2.00
$
$
Limited-Service Lodging
Full-Service Lodging
7.00
$
Ultimate Beneficiary of Tourism = Residents + Community
The Pay Off
$58.3
$2.2
Million
Billion
Incremental combined TOT for County and jurisdictions over 10 years
Incremental visitor spending over 10 years
Increase in TID will improve Market Share, Revenue, and Community Connectivity What a more competitive budget can do...
According to Tourism Economics, the new budget would contribute nearly $2.2 billion in incremental visitor spending over ten years. (full report available)
National Brand with paid media reach into Midwest, East Coast – high value travelers
Meetings & Conferences
Expand sales team; increase sales activities; aggressive booking incentive; intensify focus on corporate, incentive and Tour & Travel
Event Attraction & Promotion
Dedicated program to attract advantageous events; paid media support for select events
Air Service Development
Annual dedicated budget; strategically proactive
International Marketing
Multi-country sales representation, significant increase in direct sales and marketing
Luxury Initiative
Significant expansion (2-3X) of both sales and marketing programs
Sustainable/ Responsible Travel
On-going paid media campaign; support shuttle programs/promotion; in-market collateral/signage
One More Percent
One More Night
Projected increases with a 1% increase in off-season occupancy
Projected increases by extending each stay by 1 additional night
$692,968
in Local Tax Receipts
$852,950 TOT
$33,747,179 in Visitor Spending
SeeMonterey.com
Total visitor spend ($M)
TOT driven by tourism funds resident quality of life, including parks, libraries, road repairs, emergency services and more.
Sphere of Marketing Reach
3,500
An $877M increase
3,000 2,500 2,000 1,500 1,000 500 0 Current Avg (2.6 nights)
One More Night (3.6 nights)