HomeMy WebLinkAboutcclc.ag.081202 COMMERCIAL CORE & LODGING COMMISSION
REGULAR MEETING
SISTER CITY ROOM - CITY HALL
AUGUST 12, 2002
8:30 am I. Roll call
II. Commissioner comments
III. Event Coordinator - worksession
IV. Adjourn
ORDINANCE NO. 45
Series of 2000
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN. COLORADO,
AMENDING TITLE 23 OF THE MUNICIPAL CODE OF THE CITY OF ASPEN TO
IMPOSE A NEW 1.0% VISITOR BENEFIT TAX: TO ESTABLISH A TOURISM
PROMOTION FUND FOR DEPOSIT OF SAID TAX RECEIPTS; TO PROVIDE FOR THE
RESTRICTED EXPENDITURE OF SAID TAX RECEIFrS; AND TO ESTABLISH
PENALTIES FOR VIOLATIONS THEREOF.
WHEREAS, the City of Aspen is a world renowned tourist destination: and
WHEREAS, the Continuation of a healthy tourism industry is essential for the economic
well-being of the City of Aspen and the general welfare of its citizem and such an industry
requires a confmuing investment in the planning, promotion, and development of the City of
Aspen as a world renowned travel destination: and
WHEREAS. the City Council has determined that it should be the policy of the City to
guide a sustainable and coordinated tourism industry in the City of Aspen: and
WHEREAS. the City Council has determined that such an effort should be financed, in
part, by the imposition of a Visitor Benefit mx upon the leasing or renting of rooms or other
accommodations in commercial lodging accommodations by short term visitors and guests; and
WHEREAS. the City Council has determined that it is in the best interests of the citizens
of the City of Aspen for the City to participate fully in the organization and operation of a
Regional Transportation Authority and to contribute financially to hhat effort; and
WHEREAS. the City Council has determined that tourists and guests of the City of Aspen
should be required to help defray the costs of transportation services offered within the City of
Aspen; and
WHEREAS. the ballot language as approved by the voters of the City of Aspen at the
November 7. 2000, election specifies that marketing funds shall be managed by a professional
marketing entity such as the ACRA: and
WHEREAS, an additional revenue source for the City of Aspen would (a) permit the City
to fully participate financially in the newly created Roaring Fork Transportation Authority; (b)
ensure that current local transportation services are maintained at their current levels; and, (c)
provide requisite f'mancial resources for additional and improved transportation services within
the City of Aspen; and
WHEREAS, the City Council has determined that 50% of all revenues generated by the
Visitor Benefit tax shall be used to enable the City to meet its financial obligations to the Roaring
Fork Regional Transportation Authority or other similar transportation services provider, and
50% of all revenues generated shall be used for marketing and promotional efforts for the City's
tourism industry; and
WHEREAS, Article X, Section 20, of the Colorado Constitution. and Section 12.1 of the
Aspen Home Rule Charter. require the City Council to obtain voter approval in advance of the
imposition of any new taxes.
NOW. THEREFORE. BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
ASPEN, COLORADO:
Section 1.
That Title 23 of the City of Aspen Municipal Code be amended to add a new Chapter 23.50 to
read as follows:
Chapter 23.50
Visitor Benefit Tax
23.50.010 Legislative Intent.
The City Council declares that the enactment of a 1.0% Visitor Benefit Tax and the
expenditure of the receipts of such a tax for the promotion of tourism and transportation
services within the Roaring Fork Valley will serve a public purpose, will promote the health,
safety, prosperity, security, and general welfare of the inhabitants and visitors of the City of
Aspen. It is the intent of the City Council to impose a tax upon the leasing or renting of rooms
or other accommodations m commercial lodging accommodations by transient persons. The
person to whom the accommodations are rented shall pay the tax and the person from whom
the accommodations are rented shall be required to collect the tax.
23.50.020 Definitions.
As used in this chapter, unless the context requires otherwise, the following words and phrases
shall have the following meanings:
(A) "Accommodation" means the providing of a room. space, lodging service, or
other accommodations ar a taxable premise to any person who, for consideration, uses
or possesses such room, space, lodging service or other accommodation for a total
continuous duration of less than thirty (30) consecutive calendar days.
(B) "Fund" means the Tourism Promotion Fund defined in Section 23.50.050. of
this Municipal Code.
(C) "Purchaser" means any natural person, or legal entity acting through a natural
person, to who accommodations are provided.
(D) "Rent" means the consideration received, or compensation charged, for the
providing of accommodations.
(E) "Taxable premises" means any hotel, apartment-hotel, motel, guest home,
condominium, townhouse, townhome, lodge, motor lodge, trailer court, campground,
or bed and breakfast establishment.
(F) "Tourism" means the guidance, management, promotion, encouragement, .or
accommodation of tourists.
(G) "Vendor" means any natural person or business entity that provides
accommodations for rent at a taxable premise.
23.50.030 Imposition of tax.
There is hereby imposed a visitor benefit tax of one percem (1.0%) upon the rem paid
or charged for accommodations provided by a vendor to a purchaser at a taxable premise.
23.50.040 Receipts, disposition.
All monies collected or remitted in accordance with this chapter shall be credited to the
separate fund created by section 23.50.050 of this Municipal Code, and shall be kept separate
and distinct from the General Fund or any other separate funds maintained by the City.
23.50.050 Tourism Promotion Fund.
A. There is hereby created a special separate fund to be known as the City of
Aspen Tourism Promotion Fund. Said fund shall be separate and distinct from any other funds
or accounts used or maintained by the city for any other purposes. The monies of said fund
shall be expended only for the purposes set forth herein and no others.
B. The fund shall consist of
(1) all monies deposited or transferred thereto ~n accordance with section
23.50.041~ of this chapter:
(2) contributions of money, property, or services received for use m
carrying out the purposes of the fund from any person, corporauon, or
association; and
(3) all monies otherwise made available to the fund from whatever source.
C. Any monies not appropriated shall remain in the fund and shall not be
transferred to or revert to the General Fund of the city at the end of any fiscal year. Any
interest earned on the investment or deposit of monies of the fund shall remain in the fund and
shall not be credited to the General Fund of the city.
D. Fifty percent (50%) of all momes in the fund shall be dedicated to transportation
services as described below and fifty percent (50%) of all monies in the fund shall be dedicated
for tourism promotion activities as described below. All appropriations of monies from the
fund shall be made by the City Council and only in accordance with the above-described
dedication of those funds.
E Funds dedicated to transportation service in accordance with Section
23.50.050(E) shall be appropriated by the City Council only for the following purposes:
1. To pay for regional transportation services as provided by the Roaring
Fork Regional Transportation Authority or the Roaring Fork
Transportation Agency;
2. To contribute to local public transportation services within the City of
Aspen and its immediate environs; or
3. To defray administrative and clerical costs of collecting and
administering the tax, provided such expenditures do not exceed the
actual costs of such administrative and clerical costs.
F. Funds dedicated ro tourism promotion in accordance with Section 23~ 50.050(E)
shall be appropriated by the City Council to a professional marketing entity such as the Aspen
chamber Resort Association upon the submission and approval of a budget prepared by the
Aspen Chamber Resort Association. or other similar organization, only for the following
purposes:
1. planning and implementing the advertisement, promotion, and
development of tourism in the City of Aspen:
2. tourism advertising, written and graphic materials, and cooperative and
matching promotional materials:
3. gathering and disseminating information on the tourist industries and
attractions of the City of Aspen;
4. purchasing such equipment, materials, and supplies as shall be
necessary, to be used solely for tourist promotion;
5. contracting for those services and materials as may be incidental,
necessary, and appropriate re the accomplishment of the purposes of the
fund, including but not limited m. administrative, secretarial, clerical, or
professional serwces deemed necessary;
6. attracting conferences, conventions, and meetings of a commercial,
cultural, educational, or social nature m the City of Aspen:
7. attracting sporting events and social and cultural events sponsored by
non-profit orgamzanons;
8. defraying administrative and clerical costs of collecting and
administering the tax, provided such expenses do not exceed the actual
costs of such administrative and clerical costs.
23.50.060 Administration.
The administration of this chapter is hereby vested in the finance director. The finance
director shall prescribe forms and administrative procedures for the ascertainment, assessment,
and collection of the tax not inconsistent with this chapter, and for the enforcement of this
chapter. This Chapter 23.50 shall be administered in accordance with Chapters 23.04 through
23.28 of this title, to the extent that they do not conflict with the prowsions of this Chapter.
23,50.070 Civil action for recovery tax due,
The city shall have the right to recover all sums due under the terms of this chapter by
judgment and execution thereon in a civil action in any court of competent jurisdiction, Such
remedies shall be cumulative with all other remedies provided herein for the enforcement of
this chapter,
23.50.080 Violation; penalty.
Failure ro comply with the terms of this chapter by payment of taxes, filing of a return
and otherwise complying with the terms of this chapter shall constitute an offense in violation
thereof, punishable, upon conviction, by a fine, imprisonment, or both a fine and
imprisonment, as set forth in section 1.04.080 of this Municipal Code.
Section 2.
The effective date of this ordinance and the imposition of the tax referenced herein shall
be January 1. 2001; provided, however, that a majority of the electors of the City of Aspen
voting thereon, at the November 7. 2000, municipal election, approve the imposition of an
increase in sales taxes as contemplated by this ordinance.
Section 3~
This ordinance shall not have any effect on existing litigation and shall not operate as an
abatement of any action or proceeding now pending under or by virtue of the ordinances amended as
herein provided, and the same shall be construed and concluded under such prior ordinances.
Section 4.
If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason
held invalid or unconstitutional in a court of competent jurisdiction, such portion shall be deemed a
separate, distinct and independent provision and shall not affect the validity of the remaining portions
hereof.
A public hearing on the ordinance shall be held on the 23rd day of _October 2000. in the City Council
Chambers. Aspen City Hall. Aspen. Colorado.
INTRODUCED, READ AND ORDERED PUBLISHED as provided by law by the City Council of the
City of Aspen on the 25th day of September, 2000.
Rachel E. Richard~ Mayor
ATTEST:
Kathryn g. KochJ City ~ierk
FINALLY adopted, passed and approved this 23rd day of October 2000.
Rachel E Richards. Mayor
ATTEST:
Kathryn S~och. City Clerk / g/J
JPW-11/28/00-G:\john\word\ords\visitor-benefit-tax.doc
RESOLUTION NO. ~ (Series of 2000)
A RESOLUTION OF THE CITY COUNCIL OF ASPEN. COLORADO. APPROVING AN
AGREEMENT BETWEEN THE CITY OF ASPEN AND THE ASPEN CHAMBER RESORT
ASSOCIATION AND AUTHORIZING THE MAYOR TO EXECUTE THE SAME.
WHEREAS. there has been submitted to the City Council a proposed Agreement between
the City of Aspen and the Aspen Chamber Resort Association relating to the expenditure of a
portion of the receipts of the recently nnposed 1.0% visitors benefits tax; and
WHEREAS, the City Council desires to approve the proposed Agreement.
NOW, THEREFORE. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF ASPEN, COLORADO:
Section 1
That the Agreement between the City of Aspen and the Aspen Chamber Resort
Association appended hereto as Exhibit A is hereby approved and the Mayor is authorized to
execute the same on behalf of the City of Aspen.
INTRODUCED, READ AND ADOPTED by the City Council of the City of Aspen on
the _ yof , 200 .
I, Kathryn S. Koch. duly appointed and acting City Clerk do certify that the foregoing is
a true and accurate copy of that resolution adopted by the City Council of the City of Aspen,
Colorado, at a meeting held on the day hereinabove stated.
'Kathryn S. K~h, City Clerk
JPW-.02/21/2001-G:\john\word\resos\acra.doc
AGREEMENT
CITY OF ASPEN AND ACRA
RE: TOURISM PROMOTION FUND ~
THIS AGREEMENT is effective this ~day of -"'-;by and between the
CITY OF ASPEN (the "City"); the ASPEN LODGING ASSOCIATION ("ALA"), and the
ASPEN CHAMBER RESORT ASSOCIATION ("ACRA"),
RECITALS
I. The City Council has submitted [o the voters of the City of Aspen a referred
question seeking authority m impose a 1.0% visitor benefits tax upon the rent paid or charged tbr
accommodations in the City of Aspen.
2. The City Council has adopted Ordinance No. 45, Series of 2000. wbich imposes a
1.0% visitor benefits tax on condition that the voters of the City of Aspen approve the
aforementioned ballot question at the November 7. 2000 municipal election.
3. Ordinance No. 45. Series of 2000. requires the City Council ro appropriate 50%
of all revenues generated by the tax for marketing and promotional efforts for the City's tourism
industry.
4. The City desires to contract with an organization capable of performing the
marketing and promotional efforts contemplated by said ordinance.
5. The Aspen Chamber Resort Association desires m contract with the City to receive
funds appropriated by the City Council for tourism promotion activities and to thereafter perform
such tourism promotion activities on behalf of the City of Aspen.
6. The Aspen Lodging Association desires to participate in the planning and delivery
of the tourism promotion activities as contemplated by this agreement.
AGREEMENT
In consideration of the mutual covenants herein contained and other good and valuable
consideration, the receipt and sufficiency of which are hereby mutually acknowledged, the parties
agree as Ibllows:
1. Intent of the parties. The parties to this Agreement agree that the following sets
forth their intent in entering into this agreement and the principals set forth below shall help guide
all future interpretations of this Agreement and the parties continuing relationship with respect m
the expenditure of tourism promotion funds of the City of Aspen.
a The parties acknowledge that the City shall use funds generated by the
visitor benefits tax imposed by Ordinance No. 45, Series of 2000, to meet its
financial obligations pursuant to this Agreement. Accordingly, the parties
acknowledge that the purpose, limitations, and administrative requirements of such
funds as set forth in said ordinance shall apply to this Agreemem.
b. The parties intend m enter into a continuing relationship for multi-year
planning and implementation of tourism promotion activities as set forth herein.
However. this agreement shall be for renewable terms of one year to coincide with
the City's fiscal year and budgetary planning process.
c The parties acknowledge that the purpose of the 1% visitor benefits tax is
m, inter alia. generate sufficient funds to adopt new and innovative methods for
planning and delivering tourism promotion activities on behalf of the City of
Aspen. Accordingly, the marketing plan and budget contemplated by this
Agreement shall be primarily for new strategies and activines not currently funded
by the City, ACRA or other third parties.
2, Scope of Services and Marketing Program
a. During the City's annual budget review and adoption procedures. ACRA
shall recommend a marketing plan and budget for the City's forthcoming calendar
year. Appended hereto as Exhibit A is the marketing plan and budget for fiscal
year 2001.
b. The marketing plan and budget shall include the following:
1 planning and implementing the advertisement, promotion, and
development of tourism in the City of Aspen;
2 tourism advertising, written and graphic materials, and cooperative
and matching promotional materials;
3. gathering and disseminating information on the tourist industries and
attractions of the City of Aspen;
4. purchasing such equipment, mater/als, and supplies as shall be
necessary, to be used solely for tourist promotion;
5. contracting for those services and materials as may be incidental,
necessary, and appropriate to the accomplishment of the purposes of
the fund. including but not limited to, administrative, secretarial,
clerical, or professional services deemed necessary;
6. attracting conferences, conventions, and meetings of a commercial.
cultural, educational, or social nature to the City of Aspen;
7 attracting sporting events and social and cultural events sponsored by
non-profit organizationsl
8. defraying administrative and clerical costs of collecting and
administering the tax, provided such expenses do not exceed the
actual costs of such administrative and clerical costs.
c. The marketing services shall be generally for new programs and services,
and ACRA shall not defray costs of existing programs, special events and
marketing efforts including American Express cooperative marketing funds,
airport host program, visitor center support anaong others with funds from the
marketing fund. Marketing funds may be used to enhance or promote existing
tourism promotion programs and special events.
d. The general nature and content of advertising paid for by the marketing
fund shall follow these guidelines: the purpose of advertising and promotion shall
be to enhance the year-round economy and public welfare of the City as a whole:
advertising and promotional eftbrts shall avoid undue emphasis upon any particular
commercial activity or enterprise that might be construed m create a competitive
disadvantage to other similar commercial enterprises; and there shall be no
advertising or promotion that ts misleading or deceptive and therefore opposed to
the public interest or prejudicial re the interests of the City
e. ACRA shall be solely responsible for planning and implementation of
specific details of the marketing program and may include the lodging commuulry
in such planning. ACRA shall monitor the program and ensure conformance to its
budget. At least 70 per cent of the funds are to be expended on program costs.
rather than on support or staff. ACRA shall not use fund proceeds for its existing
operational costs, for expenses not directly attributable m the purposes of this
Agreement, or expenses not identified in its annual marketing plan and budget as
approved by the City Council,
f. The ACRA and the Aspen Lodging Association shall meet at least annually
before September 1 of each calendar year to review a tourism promotion plan and
budget for the City's following fiscal year prior m presentation to the City
Council.
3. Term, The term of this Agreement shall be from January 1. 2001, through
December 31, 2001. The term of this Agreement may be extended by mutual agreement of the
parties upon the submisston by ACRA of the annual marketing plan and budget referenced herein
and the approval of the same by the City Council. The City shall notify ACRA by October 1 of
each year of its intention to renew the term of this agreement.
4. Reporting and Budgeting. ACRA shall submit a detailed marketing program and
expense budget for inclusion in City's budget packets, along with a review of the previous year's
program (except for the first year). The City Manager shall provide budget recommendations,
including an estimate of prospective tax proceeds, general fund contributions, prior year carry-
forward balance, and interest income. The marketing fund shall be eliminated from the City's
Grant Panel Review process in that it is its own separate fund. The ACRA is allowed and
encouraged to attend and advise the City Council at all such meetings where the marketing
program and budget is discussed. The City shall not unreasonably restrict, reallocate, or change
the marketing program and budget as submitted by the ACRA. ACRA shall provide annual
reports to the City on the fund and expenditures from it.
5. Accounting. The City shall pay over to ACRA the marketing funds raised by the
tax on a quarterly basis. ACRA shall be responsible fur paying ~ts vendors, suppliers.
subcontractors, staff, and the like. ACRA shall maintain the tax fund receipts in a separate and
interest-bearing bank account from its general funds. The City may inspect ACRA's records upon
reasonable notice All marketing funds accrued during the life of this Agreement shall be paid
over to ACRA, although ACRA shall account thr and refund any funds not expended for the
purposes set forth in this Agreement.
6. Equal Access. Any and all businesses within the City shall be permitted equal
access and opportunity to participate ~n cooperative advertising efforts and package promotions
specifically related to and supported by the use of the marketing funds referenced in this
Agreement. whether or not the business is a member of the ACRA or the Aspen Lodging
Association. That is. to the maximum extent possible. ACRA shall make a distinction between
member service and other existing programs supported by membership dues, and new programs
supported by the City by this Agreement. and as to the latter, not discrtminate based on
membership in the orgamzations.
7. Termination. Either party may terminate this agreement upon 90 days written
nonce prior to the end of the term of the agreement, setting forth the reasons for the termination.
Either parry may terminate the agreement upon 30 days written notice for cause, setting forth the
grounds for such cause.
8. Other Restrictions and Provisions.
a. The City shall not unreasonably withhold or redirect funds from the
marketing funds raised by the visitor benefits tax that are to be handled by the ACRA. These are
intended ro be additional funds for marketing, and the intent is that the City will continue its
ex~sting funding (for the visitors center, etc.) as a floor, and not lessen those so that the
marketing funds from the tax are not absorbed into existing ACRA/City programs.
b. The marketing funds shall not be used for city capital projects such as the
construction of visitor information centers or other tourist amenities.
c. The City Council shall not, without prior consultation with the Aspen
Lodging Association and ACRA, change the agent assigned to manage the tourism marketing
funds. Nor shall the City change that agent without some sort of cause and explanation, and it
shall consult with the Aspen Lodging Association as to any new fund manager.
d. ACRA shall not use any of the marketing fund for providing direct
reservation services. '
e. ACRA shall not use fund proceeds to influence the outcome of any
election.
9. Binding Effect. This Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective heirs, representatives, successors and assigns and to any
person into or with which any party hereto may merge, consolidate, or reorganize.
10. Acknowledgments. The parties declare that they have read and understand the
terms of this Agreement, that they have had an opportunity to be represented by counsel with
regard to the execution of this Agreement, and that they execute this Agreement voluntarily and
without being pressured or influenced by any statement or representation made by any person
acting on behalf of any one else.
11. Indemnification. ACRA agrees to indemnify and hold harmless the City, its
officers, employees, insurers, from and against all liability, claims and demands on account of
injury, loss, or damage, arising out of or in any manner connected with this Agreement, if such
injury, loss, or damage is caused in whole or in part, or is claimed to be caused in whole or in
part by, the act, orn[ssion, error, mistake, negligence, or other fault of ACRA, employee,
representative, or agent. ACRA agrees to investigate, handle, respond to, and to provide a
defense Ibr and defend against any such liability, claims or demands at the sole expense of
ACRA, or at the option of the City, ACRA agrees to pay the City or reimburse the City for the
defense costs incurred by the City in connection with, any such liability, claims or demands, If it
is determined by the final judgment of a court of competent jurisdiction that such injury, loss, or
damage was caused in whole or in part by the act, omission, or other fault of the City, its
officers, or its employees, the City shall reimburse ACRA for the portion of the judgment
attributable to such act, omission, or other fault of the City, its officers, or employees. If any
lawsuit challenges the City's authority to impose the visitor benefits tax, the City shall be
primarily responsible for the defense of the suit.
12. No Warranties. Except as expressly set forth in this Agreement, the parties have
not made and make no other representations, warranties, statements, promises or agreements to
each other.
13. Entire Agreement. The parties agree that this Agreement represents the entire
agreement and supersedes all prior agreements between and among them with regard to the
subject matter set forth herein, and may not be amended nor may any condition contained herein
be waived except by written instrument signed by all parties
14. Notices. Notices hereunder shall be sent ro the City Manager and the City
Attorney m 130 S. Galena Street. Aspen CO 81611; [o ACRA at Aspen Chamber Resort
Association, 425 Rio Grande Place. Aspen CO 81611: and ro I Nicholas McGrath. 600 E.
Hopkins Ave, Suite 203. Aspen CO 81611.
15. Counterpart Signatures. This document may be executed in counterpar[ original
copies, with the original signatures on separate pages ~o be collated together on one original form
of the agreement.
16. Effective Date. This agreement shall be effective on January 1. 2001, and
then only if the visitor benefit tax is approved by the voters in the City of Aspen at the general
election in November 2000.
CITY OF ASPEN,~a municipal corpor~~
Ad' '~..~f.j_g g.,t ~ 9 ~.~ ~-~Rachel Ri:harris. M~yor '
Clerk y
Dated: /~.~ ~"2~ , 200~.
ASPEN CH)fi~BER RESORT ASSOCIATION
By Christine Nol[n,~l~resident
Jpw. 02/08/01. G:\j ohn\word\agrkxcra- vi~itor-b eh- t ax. do c
EXHIBIT A
ASPEN CHAMBER RESORT ASSOCIATION
MARKETING ADVISORY COMMITTEE
REPORT ON PROGRESS TO DATE AND
OUTLINE FOR PLAN OF WORK
March 2001
Meetings and structure: The Marketing Advisory Committee (membership
list attached) has met four times since the beginning of the year under the
auspices of ACRA. The group has heard presentations from Colorado Ski
Countryl the state tourism office's public relations firm, the Aspen Skiing
Company, the Aspen Music Festival and School, and the Aspen Sales
Directors Association. At its last meeting, members considered the outline
that follows as a plan to proceed.
Content and conclusions of presentations: The following points were
made about, the tourism environment by our various speakers; although this
list is not comprehensive, it does include the major observations.
At the state level:
~ Colorado tourism has dropped 30percent since 1994.
The ski industry is fiat; CO skier visits are down.
Competition in tourism promotion spending is very high (Hawaii,
$55 million; Colorado, $6 million.)
)~ Tourism officials are trying to re-energize the Colorado brand.
~ Public relations, advertising and promotions are being used.
~ Demographic targets are baby boomers, older gen-xers, families.
)~ Psychographic targets are active travelers seeking an experience-
based vacation.
~ Key markets are Dallas, LA, Chicago, Albuquerque/Santa Fe.
~ For the "mountain traveler," Colorado is most desirable location, in
both summer and winter.
Generally:
~ National travel is up.
)~ Vacationers want multi-dimensional experience-Jots to choose from,
easy to access, and smartly packaged.
)~ Family time is important; kids participate in vacation decisions.
~ Beauty of the environment is still a major motivator.
)~ Average stay is shrinking; lead booking time is shrinking. ·
)~ Web-based vacation research and bookings are on the rise.
We have a high return-guest rate, and relatively low trial.
Our guest ss aging, both ~n summer and winter.
Aspen is considered a mature destination.
Competition in the ski industry is intense, including significant
development in other communities.
Our image is one of exclusivity, expense, inaccessibility.
One survey shows satisfaction of the Aspen visitor is high, but value
compared to expense and diversity of attractions are average.
Word of mouth and personal experience are the strorgest motivators
in Aspen vacatzon decisions, both summer and winter.
The group/business traveler is important to drive shoulder seasons,
trial, and spending levels.
The community's collateral, web presence, message and sales efforts
appear uncoordinated.
The bed base has decreased, but so has occupancy. Luxury properties
tend to fill first.
Emerging themes: Consistent themes emerged from the disparate
presentations: this was in itself a large statement, as the individuals
presenting had different constituencies and agendas. The committee thought
it prudent to capitalize on these recognized consistencies and assign smaller
groups to work on them more specifically.
Developing trial: We have known for some time that the Aspen Skiing
Company has claimed a significant number of return guests among its skiing
population. We now know, as of the summer of 2000, return guests also make
up the majority of non-ski-season visits to Aspen as well (In winter, 75
percent of guests have been to Aspen before: in summer, 71 percent.)
While we certainly need to devote resources to this important segment i.e.,
increasingly personalized customer service, the creation of enhanced
recreational and cultural experiences, etc.--the committee agreed on the
wisdom of assigning a significant portion of this new marketing fund to reach
new audiences.
Questions for subcommittee assigned to developing trial:
What new audiences are we going to try to reach? What
characterizes them?
--Middle,aged affluent?
--Young and hip?
--Families?
--Recreation and/or culture seekers?
--Meetings/conference business?
--International?
~ What information do we need as a baseline? What is known or
available now. and what do we need to find out about our current
visitor demographics/psychographics?
~ How will we determine success? That is, what ts our goal and how
will we measure incremental improvement?
What tools should we begin to think about, i.e., public relations;
advertising,, trade shows; web sites; direct mail; special events; etc.
~ When is it most effective to go directly to consumers? To selected
media? To meeting planners? To influencers/changemakers?
~ What kinds of resources will be required, that is, what will this
effort require in terms of time, money, and professional support?
Crafting a unified message: This theme surfaced ~n a number of different
ways, including the need to sell the entire destination/vacation experience,
and the wisdom of promoting alt seasons and activities.
Questions for subcommittee assigned to developing a unified message:
~ What are the key elements oT th~s message. What are we trying to say
about Aspen?
--Affordable?
--Glamorous?
--Accessible?
--Diverse in terms of activities/opportunities for entertainment?
--Fun?
--Sophisticated?
~ Is there more than one message, depending on the audience, time of
year, and promotional vehicle? Is this realistic/do-able?
~ What is the shape/form of this message--theme statement, logo,
narrative?
~ How will we determine success? That is, what is our goal and how
will we measure incremental improvement?
What tools should we begin to think about, i.e., public relations;
advertising; trade shows; web sites; direct mail; special events; etc.
When is it most effective to go directly to consumers? To selected
media? To meeting planners? To influencers/changemakers?
What kinds of resources will be required, that is, what will this
effort require in terms of time, money, and professional support?
Pursuing collaborative relationships: A consistent message will only be
effective if it is presented in a consistent manner. The point has been made
that the commum~y lacks a clear, focused call To action and information
source. On a related note. the committee has also seen how much more
powerful its work will be if it builds on existing efforts at both the communiw
and state level.
Questions for subcommittee assigned to developing collaborative
relationships:
What partners must come together in the community to mount the
most powerful campai~t to increase tourism?
What resources are available on the state or national level?
What are the strengths and weaknesses of these groups' current
initiatives?
How will we determine success in achieving greater cooperation and
effective~tess?
What resources/tools are needed to facilitate this enhanced
cooperation?
Analyzing competitive forces: The point was made au the last committee
meeting that the potential Aspen visitor, whoever we determine that to be. is
part of a finite, limited audience. What we are actually discussing are ways
build market share by taking it away from others. The committee also felt we
had a great deal to learn from other successful operations. Thus, a fourth
subcommittee was added to look at these factors.
Who is our competition and what characterizes them?
What do we know about them? What do we not know?
What research do we need to conduct to know more?
Why do people make the decision to visit other (similar)
destinations?
How do we effectively reach those people with a compelling message
about Aspen?
Do we want to measure, ultimately, how much market share we have
gained and from ,.vhom? What tools do we need to employ to do that?
Plan of work: Subcommittees were formed to address the questions outlined
here and others the committees will pose themselves. At subsequent
meetings, after 45 minutes of independent work, the entire committee will
convene and scribes will present reports.
As we progress, staff will attempt to gather necessary information, conduct
research, etc. to supply whatever data the subgroups don't have readily
available. At such time as the committees have completed this working
phase, we would summarize and present the next phase of "emerging
themes." At this point, subcommittees might re-form along the lines of more
specific promotional tools and strate~es (i.e., a media 2elations group; a web
site group: a direct mail group.) Those groups would in turn start to
recommend tactics, and begin to outline for the marketing plan exactly where
resources would be spent and how the work would best be accomplished.
Ultimately, of course, staff will formulate the specific plan and bring it back
to the Marketing Advisory Committee for its response. The revised goal is to
have a plan. and accompanying budget, ready for City Council by June 1.