HomeMy WebLinkAboutCH-OCVB minutes 011817Approved February 15, 2017
MINUTES
Chapel Hill /Orange County Visitors Bureau Board of Directors Meeting
January 18, 2017
The Chapel Hill /Orange County Visitors Bureau met at
Orange County Solid Waste, Chapel Hill, NC
Board Members Present: George Cianciolo, Sharman Campbell, Andrew Strickland, Tim Hoke, Jeffrey Strickler,
Rosemary Waldorf- Chair, Kayla Austin, Aaron Bachenheimer, Mark Sherburne, Annette Stone, Meg McGurk, Lee Pavao,
Nitin Khanna,
Not Present: Allison Nichols- Clapper, Penny Rich, Mark Bell, Lee Storrow
Staff attendance: Laurie Paolicelli, Marlene Barbera, Allison Chambers, Steve Brantley, Katie Murray
Also present: Stephanie Brown, Asheville CVB, Tom Stevens, Mayor of Hillsborough, Muriel Williman, OC Solid Waste,
Roger Stancil, Chapel Hill Town Manager, Kristi Kaas, Hyatt Place Hotel
Call to Order
Chair Rosemary Waldorf called the meeting to order at 8:08 am.
Introductions were given by all.
Approval of Minutes
Chair Waldorf requested a motion to approve the November 16, 2016 minutes. Lee Pavao so moved and George
Cianciolo seconded. With all members in favor, the minutes were approved as submitted.
Host Introduction
Chair Waldorf introduced Muriel Williman from Orange County Solid Waste Recycling who shared information about the
recycled components of the building that we were meeting in which include a water reclamation system and solar water
heating. She reminded the board that there are recycling bins on public streets in all three municipalities and thanked
the town officials present for making that possible.
Finance Report
As Finance Chair Penny Rich was unable to join us, Chair Waldorf gave the finance report. We were expecting a 7%
increase in occupancy tax this year, which to date has not be the case, as we are presently almost flat from last year.
That being said, we have accumulated available fund balance and the executive committee has recommended using
$250,000 in fund balance to fund a spring /summer tourism media campaign with Clean Design that will include TV spots
to address H132 fallout. This recommendation comes as an expression of the need to spend down that fund balance, and
the need to promote the county in the shoulder season with this strong marketing blitz. Chair Waldorf called for a
motion and Mark Sherburne so moved with Lee Pavao seconding. The motion passed unanimously.
New Business
Roger Stancil shared with the board that the British Consul has recently visited Chapel Hill as he establishes an official
presence in the Triangle and based on their conversation it is clear the HB2 is a powerful international issue. Stancil
reported that he will put them in touch with Paolicelli. Visitor, Stephanie Brown, who serves on a state committee to
study HB2. She shared that NC is on travel bans from 20 cities and states and the British have ordered a security alert to
their citizens. A group of travel leaders have met with the seven big travel associations to ask them to act on the part of
their members as it relates to the "weaponization" of travel through boycott. Destination Marketing Association
International (DMAI) and US Travel have made a commitment to fund a communications strategy and work with
governors and legislatures that have these bans in place. Twenty -three states have federal court issues with LGBTQ
rights. NC is not unique in "bathroom bills."
Laurie Paolicelli asked Mark Sherburne to speak about the trends in the market. Looking forward from about the time
HB2 was passed and Huron completed their work at UNC you could see the market softening and cracks beginning in the
system. April and October should be by far the busiest months of the year and in 2016 they were not. To increase
market share a hotel will lower their rates and then everyone else must follow suit. This past October hotels were
charging shoulder rates and some of this has improved post - election as people seemed uneasy during that period. He
shared that looking into the future, occupancy seems to be growing but rates are not.
Chair Waldorf introduced Kristi Kais, Sales Manager for the Hyatt Place which will open this spring.
Chair Waldorf recognized Andrew Strickland who has recently moved from the Residence Inn to the new AC Marriott,
opening in mid - October 2017. Modular rooms will be built in PA and shipped here two at a time. It is a new Marriott
lifestyle product incorporating 123 rooms and lots of communal space.
Guest /host speakers
Laurie Paolicelli introduced Stephanie Brown from the Ashville /Buncombe CVB who reported that they have a staff of
twenty -five and a budget of $14.5 million. They were established in 1983 by state legislation to administer the
occupancy tax and are mandated to generate room nights; creating a sustainable investment to grow the tourism
economy. There board is comprised of 9 members appointed by the City, County and Chamber of Commerce with
Buncombe County being the fiscal agent and focus being on destination promotion. Their occupancy tax is 6% with % of
that dedicated to sales and marketing and % for Tourism Product Development, which they accomplish through grant
awards. They have experienced a 17.6% increase in taxable lodging sales in the last ten years. Eighty -three percent of
the lodging revenue comes from Hotel /Motel with the remainder coming from vacation rentals and B &Bs. As a result of
their PR and marketing endeavors they have had 746 targeted pitches, 204 media site visits and 3.8 billion impressions.
Their video assets have experienced 6 million views. Their new website ExploreAshville.com has 120 pieces of new
content, 100 navigation pages, 4 million user sessions and 72% new site visits. Their most recent expansion markets
being: Washington DC metro, Florida — Jacksonville, Orlando, Tampa, West Palm Beach and Miami. Broadcast focus is
on networks that reach at least 10% of the target which provides brand - suitable alignment. Print advertising is in
premium national titles that reach an upscale, travel- minded audience via a blend of travel and lifestyle content layered
with regional buys that reach travel intenders such as Garden & Gun, Traveler, Our State, Atlanta Magazine, National
Geographic Traveler and Travel + Leisure. One of their focuses is on establishing Asheville as a top music town. New on
their music website is: explore Asheville radio, comprehensive live music calendar, streaming video with IAMAVL and
editorial content and an advertising campaign targeting music enthusiasts, music culture PR and content push and music
sizzle radio. A tourism market development fund was established in 2001 which established a committee to evaluate
applications and recommend projects to the BCTDA for funding. This grant program provides a funding stream for
capital development projects what will significantly increase patronage of lodging facilities in Buncombe County. TPDF
has awarded $27 million to 32 projects since the fund's inception. George Cianciolo asked about the success rate they
have experience after making 32 grants totaling $27 million for tourism market development and she replied that,
overall yes, and somethings have added value in a less conventional manner and have added things to do that ultimately
enhance a visitor's experience and create assets a small business can use.
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Executive Directors Report
Laurie Paolicelli shared that while we are Ashville in miniature with a staff of 6, a budget of $1.5 million and 1600 hotel
rooms our principle and our growth have been the same. Our budget has doubled in the past 10 years; we have
launched a new website, promoted new advertising and added television ads. We are presently running a $25,000 LGBT
ad in Garden & Gun. Our advertising budget is presently $500,000 and we plan to grow that. She thanked Stephanie for
reminding us all that tourism growth is a strong return on investment.
Ms. Paolicelli stated that we have hired CSL Market Research to do a study on demand generators in Orange County.
We will receive the preliminary results of that study later today and will present those findings to the board in March.
With the boards blessing we will use drawn down fund balance to produce television ads and our team from Clean
Design will be here next month to report on that. An analysis committee has been put together to look at what would
happen if we took some of the anomalies out of hotel occupancy such as Huron, Epic and Lux. Would the market have
remained flat or actually grown? They are studying this a) to make the case for marketing, but b) to provide our elected
officials with information on what kind of properties we will need in the future, there by letting the market make
decisions. She also reported that she had attended a very preliminary meeting about the Old Town Hall renovation and
future use.
Sales Report
Marlene shared that representatives from NATJA will be here at the beginning of March to finalize plans for the
conference. She will be holding a luncheon for UNC meeting planners during March Madness as there has been hotels
added and planner turnover at UNC since the last time she held the event. The visitors' bureau services will also be
promoted at the luncheon.
New Business /Roundtable
Chair Waldorf acknowledged all for updates in their respective fields;
Meg McGurk of the Downtown Partnership reported that they will have their annual meeting January 20 at DSI Comedy
Theater. They will be announcing an exciting new partnership they are entering into with a downtown non - profit.
Shimmer, the Art of Light will be held for the second Friday Art Walk. There will be a series of economic development
meetings regarding the future of West Rosemary St.
Annette Stone will be reporting to her board in Carrboro next week on economic development there. They rely on the
Visitors Bureau to bring tourists into Orange County and then they bring them to Carrboro through their advertising
efforts once they get here.
Shannan Campbell reported that the bi- annual garden tour will happen this spring. The Hillsborough Chamber of
Commerce will hold their annual meeting next week. The Orange County Museum is opening a Horace Johnson exhibit
and will host an opening event.
Katie Murray shared that the Orange County Arts Commission is presently in a period of transition. The board is looking
at the direction they are going in to plan the best way to support local artists going forward. They will have assistance
from local artists through focus groups. They have just completed a yearlong survey and will have those results in
March.
31 Page CHOCVB BOD Meeting January18, 2017
Meeting Adjourned at 9:30 am.
Minutes reviewe bb j
Laurie Paolicelli, Executive Di e for
Date
Min tes accepted b
Rose ar`yWaldorf, Chairman
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Date
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