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Home My WebLink AboutR-02-1300J-02-1092 12/12/02 RESOLUTION NO. 02-1300 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO ALLOCATE $50,000 ANNUALLY FOR THE NEXT FOUR YEARS FOR A TOTAL AMOUNT OF $200,000, TO ASSIST THE DOWNTOWN HOTEL TASK FORCE IN ITS SALES INITIATIVE PLAN, ATTACHED AND INCORPORATED, FOR INCREASING CONVENTIONS AND GENERATING TOURISM IN DOWNTOWN MIAMI, PROVIDED THAT THE CRITERIA SET FORTH IN THE DOWNTOWN TASK FORCE PLAN ARE MET, INCLUDING BUT NOT LIMITED TO: (1) PARTICIPATING HOTELS MATCHING AT LEAST 50% OF THE CITY OF MIAMI'S CONTRIBUTION; (2) A MAXIMUM CONTRIBUTION BY THE CITY OF $25,0000 WILL BE ALLOCATED TO ANY ONE EVENT; AND (3) THE GREATER MIAMI CONVENTION AND VISITOR'S BUREAU WILL PROVIDE IN-KIND SERVICES TO SUPPORT EACH EVENT; ALLOCATING FUNDS FOR SAID PLAN FROM THE CITY'S NON -DEPARTMENTAL ACCOUNT. BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Manager is authorized to allocate $50,000 annually for the next four years for a total amount of $200,000, to assist the Downtown Hotel Task Force in its Sales Initiative Plan, attached and incorporated, for increasing conventions and generating tourism in Downtown Miami, provided that the criteria set forth in the Downtown Task Force Plan are TTa�.�, PSR Sa?'TI�� ilY :G= COPi ssloN MEETING OF DEC 1 2 2002 Resolution No. 02-1300 met, including but not limited to: (1) participating hotels matching at least 500 of the City of Miami's contribution; (2) a maximum contribution by the City of $25,000 will be allocated to any one event; and (3) the Greater Miami Convention and Visitor's Bureau will provide in-kind services to support each event. Section 3. The funds for said purpose shall be allocated from the City's Non -Departmental Account. Section 4. This Resolution shall become effective immediately upon its adoption and signature of the Mayorll PASSED AND ADOPTED this 12th day of December , 2002. ATTEST: PRISCILLA A. T1f0MPSNN CITY CLERK APPROVED LA0T0_FXM AND CORRECTNESS el - LLO CITY CITY A/!TORNEY O:tr:MJC:BSS l� If the Mayor does not sign this Resolution, it shall become effective at the end of ten calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission. Page 2 of 2 o2-1300 km- r -' ,,,_fir-...-^"`' • --_ Downtown Hotel Task Fd SUBMITTED BY: Task Force Members Juan Romero, Chairman, General Manager, Biscayne Bay Marriott Robert Lacle, Vice Chair, General Manager, DoubleTree Grand Chris Aldieri, General Manager, Hyatt Regency Miami Dianna Anker, Director of Sales, Ramada Dupont Center Joe Brown, Director of Marketing, Biscayne Bay Marriott Gil Katzman, Regional Director of Sales & marketing, Inter -Continental Miami Rodrigo Trujillo, Director of Marketing, Hyatt Regency Miami Steve Silverman, Director of Marketing, Sheraton Kevin Speidel, General Manager, Sheraton Michael Walker, General Manager, Courtyard Marriott Support Staff Christina Abrams, City of Miami, Director, Dept Conf, Conv. & Pub Fac Frank Balzebre, City of Miami, Chief of Staff, Commissioner Johnny Winton Francois Illas, City of Miami, Chief of Staff, Mayor Manny Diaz Ita Moriarty, GMCVB, Vice President Robert Murray, General Manager, Miami Convention Center, Global -Spectrum James Tevas, City of Miami, Coordinator, Dept Conf, Conv. & Pub Fac Luisa Valcarcel, Director of Marketing, Miami Convention Center, Global -Spectrum David Whitaker, GMCVB, Vice President Mary Whitehead, City of Miami, Coordinator, Dept Conf, Conv. & Pub Fac CJ Hotel Task Force, 11/16/02 2 Introduction Over the past year, the travel and tourism industry has faced significant challenges especially the decline of corporate business travel and tourism to our destination. Due to the national recession and September 11 th, the travel slowdown has severely impacted many airlines, hotels, restaurants, and businesses. As a result, travel and tourism industry workers have been laid off or had their hours reduced, companies face steep revenue shortfalls, and local governments have seen a remarkable decline in the hotel tax revenues. Recognizing the significant economic impact, Commissioner Johnny Winton and Mayor Manny Diaz formed the Downtown Hotel Task Force to develop an action plan to boost travel and tourism to our destination. The Downtown Hotel Task Force is comprised of the hotel General Managers and Directors of Marketing, the Greater Miami Convention & Visitors Bureau, and the City of Miami and has worked collectively to present the Sales Initiative Plan. Hotel Task Force, 11/16/02 3 Objective To develop a Sales Strategy, through a public-private partnership, that attracts national conventions and corporate business to downtown Miami and meets criteria established to maximize prospective business opportunities, which utilize multiple hotels to drive economic impact. c> i c� c Hotel Task Force, 11/16/02 4 Sales Initiatives Obtain business through all channels including associations, sports, corporate, special events and other room night generators. Formed a cohesive Sales Team comprised of Miami Convention Center, all downtown hotels, City of Miami, and GMCVB to solicit group business that meets minimum requirements. 4 Assign a Lead Sales Manager for each bid to coordinate efforts. 4 Ensure Communication flows freely among the Team so downtown Miami is the first to submit the most competitive offer to our prospective customers. 4 Plan Quarterly Telemarketing Day — All hotels to bring list of 750 to 2,500 room groups to be solicited by the Team. Chain properties will get lists from their National Account Offices, and GMCVB will also contact IACVB for updated list. The first quarterly meeting held produced ten feasible leads. Hotel Task Force, 11/16/02 5 Target the pharmaceutical and government market segments to solicit short-term business 4 Travel to select target markets and plan luncheons with key corporate clients. Meet with and support MSEA, Bayfront Park Management Trust, and other City venues to attract new and additional sporting and exhibition events to Miami. 4 Identify additional special events that can be hosted in Downtown Meet with Orange Bowl Committee to return the Orange Bowl Classic to downtown Miami for January 2004 and 2005. Explore the feasibility of re -instituting the water taxi as a unique means of transportation, particularly for tourists and convention delegates. Hotel Task Force, 11/16/02 Con Incentive Program A review of lost business reports indicates that we are losing business to other cities that are offering aggressive incentive programs. The Task Force has determined that the following incentives need to be offered to prospective convention planners in order to compete with other cities. Utilizing as an example a three -night convention with 1,200 delegates, the economic impact that will result from hosting a convention of this size is $1.2 million. The cost of the incentive program for this type of convention is $50,000 and will be shared by the hotels and the City of Miami. Based on a 1,200 -delegate convention, the hotels will contribute at least 50% of this cost by rebating $10 per room per night for a total of $36,000. It is requested that the City of Miami contribute a portion of the expense of the incentive program for an amount not to exceed $25,000. It is suggested that the room rebate be used by the convention planner to defray costs associated with hosting the convention in downtown Miami. Hotel Task Force, 11/16/02 7 Incentive Program - continued The incentives are listed as follows and the cost is based on a convention with 1,200 delegates: Transportation Provides cost effective means of transportation between hotels and the primary meeting destination. Welcome Reception/Special Event Present delegates with a memorable experience in Miami Rental of Miami Convention Center/City of Miami Facilities Provide primary meeting space at no cost to the convention planners Event Security Provide security at venues and hotels 0 I`r ' TOTAL w a Hotel Task Force, 11/16/02 $ 5,000 15, 000 25,000 5,000 $ 50,000 Minimum Requirements and Criteria to Qualify for Incentive Program The Task Force has identified a minimum requirement of 750 peak room nights that utilize at least two hotels in downtown. Based on industry standards, an event requiring 750 peak room nights and a three-day hotel stay will have an economic impact of $641,250. In order to book the most amount of business with the funding allocated, no single event shall receive incentives totaling more than $25,000 from the City of Miami. Hotel Task Force, 11/16/02 E Process It is essential to the success of this program that the Sales Team conducts business faster, and is able to quickly put together a package that exceeds the clients' requirements. To this resolve the City of Miami needs to designate a representative authorized to commit to the incentive(s) necessary to secure the business. The average turnaround time in which to make an offer is seventy-two hours (72). c� ca Hotel Task Force, 11/16/02 10 Target Market The following are the initial Group Leads that resulted from the first sales initiative of the Hotel Task Force. Downtown Miami is a strong contender and it is believed that the proposed incentives will position Miami to secure these conventions. Group Lead NCR Internal Revenue Service Dept of Veterans Affairs College Board Shriners Conf Child Abuse and Neglect National Science Teachers Association National Assn Student Aid and Admin National Assn Teachers of Math TOTAL ECONOMIC IMPACT Hotel Task Force, 11/16/02 Peak Room Nights 1100 1100 1500 2500 1000 1000 2000 5000 Event Date January, 2003 July, 2003 May, 2004 July, 2004 August, 2004 April, 2005 October, 2005 July, 2008 November, 2012 Economic Impact $ 940,500 $ 940,500 $ 1,282,500 $ 2,137,500 $ 855,000 $ 855,000 $ 1,710,000 $ 4,275,000 $ 12,996,000 11 Target Market - continued All the downtown hotels and Greater Miami Convention & Visitor's Bureau recently participated in a telemarketing effort. More than 800 calls were made to prospects that uncovered the following potential business that meets the minimum criteria. The Task Force is aggressively pursuing each lead and hopes to work with the City of Miami to propose the incentive program to secure the business for downtown Miami. Group Lead Peak Room Nights Event Date Economic Impact BISCSI Telecommunications 1600 2003 $ 1,368,000 Federal Express Corp 2000 August, 2004 $ 1,710,000 Boys & Girls Clubs 3000 April (annual) $ 2,565,000 Amer Prepaid Legal Services Inst 5000 Open $ 4,275,000 Sweet Adelines 800 October, 2008 $ 684,000 Annual Allied Social Science Assn 8000 January, 2009 $ 6,840,000 American Baseball Coaches Assn 1500 2009 $ 1,282,500 TOTAL ECONOMIC IMPACT Hotel Task Force, 11/16/02 $ 18,724,500 12 Alonso, Elvi G. From: = Balzebre, Frank Sent: Tuesday, December 03, 2002 4:39 PM To: Alonso, Elvi G. Subject: re: Blue Sheet item USTRICT 2 - B VICE CHAIRMAN WINTON Dear Elvi, Please put this on Commissioner Winton's Blue Page for December 12th Commision Meeting to be held at the Miami Arena: DISCUSSION CONCERNING THE DOWNTOWN HOTEL TASK FORCE SALES INITIATIVE PLAN FOR INCREASING HOTEL OCCUPANCY AND GENERATING ECONOMIC IMPACT FOR THE CITY OF MIAMI" PIs confirm acceptance -Thank You.. Frank Balzebre Chief of Staff Office of Commissioner Winton Ph:305-250-5333 Fax:305-579-3334 02-1300