Greetings

Economic Summit Participants

February 16, 2017

Convention & Visitor Bureau Responsibilities Include

• Creating awareness for Kerrville

• Attracting leisure visitors and convention delegates to our community

• Operating Visitors Center 7 days

per week

• Helping to Increase the Product Mix – Craft Agricultural Industry, Sports Complex, New

Attractions/Events, Conference Center, Hotels

Funded Thru Hotel Occupancy Tax

• Thirteen percent hotel occupancy tax for each hotel stay;

• State of Texas Receives 6%; • City of Kerrville Receives 7%; • CVB Contracts with the City – receives a

portion of collected HOT annually; • Spending regulated by State Legislature

Ad Placement Covers 10 Target Markets

• Consumer/Leisure Market • Children’s Camp Market • RV Market • Motorcycle Market • Agricultural Organizations • Corporate and Association Meeting Planners • Niche Group Markets • Tour Operators/Group Leaders • Sports Market • Festival and Special Events

Advertising Campaign Mix Goals for 2017

Print Media 42.2% Television 40.0% Digital Media 17.8%

Advertising Campaign

Ad Campaign - Print Media

• Texas Monthly

• Texas Highways

• Good Sam RV Travel Guide

• Ride Texas

• Convention South

• Texas State Travel Guide

• TACO Guide

• Sports Events

• America’s Best Vacation

• See Texas First

• TSAE Directory

• Houstonian

Convention Market

Promotion of the Arts

Special Event Promotion

Sports Marketing

Market Research

Purchased • Hotel Industry

Research

• Convention Leads

Co-Op • State Office of

Tourism Projects

• Economic Impact Studies

In-House • Visitor Center

Demographics

Social Media Marketing

• Facebook • Twitter • LinkedIn • Pinterest • Instagram • Blog • Numerous Websites

Television Campaign

Kerrville Chalk Festival

Memorial Day Weekend

Leisure Market Image Ad

Texas Select refers to a cluster of 32 targeted TV Networks that reach specific demographic audiences across 11 Texas markets through one single buy.

Time Warner Cable Households Reached:

1,365,290

Texas Select Networks Texas Select Networks • Biography Network • BBC America • Bloomberg TV • Country Music Television • CNN Español • Cooking Channel • Disney XD • Do it Yourself Network • Discover Español • ESPN News • Esquire TV • Fox Business Network • Fox Soccer • Fox Deportes • Fox Sports 2 • Game Show Network • History 2 • History Español • Investigation Discovery • Logo TV • Lifetime Real Women • Military Channel • MTV2 • Mun2 Cable • National Geographic • Nuvo TV • Outdoor Channel • OWN-Oprah Winfrey Net • Oxygen • Science Channel • Tre3’s MTV Español • WE-Women's Entertainment

One Buy = Multiple Markets!

In Houston we are on: Entertainment Travel Food Lifetime Fox News Bravo Also on WOAI in addition to San Antonio Living…we are scheduled on the Tonight Show as well.

Television Ad Markets

Service Activities

Assisted 90 Conventions/Meetings/

Groups during 2016 – Registration Assistance

– Credential Preparation

– Conference Speakers

– Welcome Addresses

– Name Badges, Lanyards, Dignitary Ribbons

Direct Sales Activities

• 397 Sales Calls (face-to-face) and 6 Industry Marketplace Shows with Hotel Directors of Sales during 2016

• Targeted Cities

– Austin

– San Antonio

– Houston

– Dallas/Fort Worth

Visitor Numbers Continue to Increase

Where Visitors Come From

Source: Customer Contact/Survey 23

73.46 % are from Texas 1. Houston Area 10.10% 2. Austin Area 9.01% 3. San Antonio Area 8.83% 4. Corpus/McAllen 3.56% 5. Fort Worth Area 3.47% 6. Dallas Area 3.10% 7. El Paso/Midland/Abilene 2.43%

States Where Visitors Originate

Source: Customer Contact/Survey 24

California Arizona

Colorado Louisiana Minnesota

Illinois Florida

Oklahoma Wisconsin Iowa

New Mexico

Countries Where Visitors Originate

Source: Customer Contact/Survey 25

January – December 2016 Canada 33.4% Germany 14.6% United Kingdom 7.6% France 6.4% Australia 5.8% Holland 4.9% Mexico 4.0% Italy 2.4%

Visitor Center Guests

Source: Customer Contact/Survey 26

[VALUE]% Day Trip

[VALUE]% Overnight

[VALUE]% Local

Resident

Where Do Overnight Visitors Stay

Source: Customer Contact/Survey 27

[VALUE]%

[VALUE]%

[VALUE]%

[VALUE]% No Answer

Hotel

Campground/ RV Park

Friends/ Family

Hotel Occupancy Tax Collections

$-

$200,000.00

$400,000.00

$600,000.00

$800,000.00

$1,000,000.00

$1,200,000.00

2008 2009 2010 2011 2012 2013 2014 2015 2016

City of Kerrville Motel/Hotel Tax Collection

The Following Graphs Were Developed By Dean Runyan

Associates For The Texas Governor’s

Tourism Research Department

Direct Travel Spending 61 Million Dollars

$50.00

$52.00

$54.00

$56.00

$58.00

$60.00

$62.00

$64.00

'08 '10 '11 '12 '13 '14 **15

Mill

i

** Spending down due to lower gasoline prices

Total Direct Employment 1020 Jobs

0

200

400

600

800

1,000

1,200

1,400

'08 '10 '11 '12 '13 '14 '15

J

obs

Local Tax Revenue 2.0 Million Dollars

0

0.5

1

1.5

2

2.5

'08 '10 '11 '12 '13 '14 '15

Mill

ion

$

Kerrville Market Challenges

33

• Lack of a Conference Center - Largest meeting space is appx 22,000 sq.ft. - Fredericksburg is discussing a 17,000 sq.ft. conference center project - Boerne announced plans for new 130 room hotel and conference center - Public/private partnership funding • Aging Hotel Inventory - Newest properties are 12-13 years old

Future Opportunities

34

• Web based Community Calendar • Arcadia Theater Revitalization • Museum Opportunities

– Museum of Western Art updates – Possible Historical Museum

• Craft Agricultural Industry Promotion – Downtown Tasting Rooms - Wineries – Brew Pubs – Distilleries –

Coffee - Olives • Conference Center Promotion

– 60 – 65,000 square Foot Conference Center to accommodate city-wide conferences

– 250 room adjoining hotel -- Downtown area

Conference Center Concept

Bottom Line • It’s a Fact - Cost of Goods and

Services to the City and County will continue to increase!

• As a citizen of Kerrville/Kerr County do you want to pay for those increased costs . . .

• Or would you rather see additional visitors pay for those increases?

• Grapevine tax base - Residents pay only 16% Visitors pay 84%

Wrap Up Tourism is an Important Industry to Kerrville Visitors to Kerrville Reduce Sales Tax Burden by 40% for Residents of Kerrville/Kerr County 8% of all employees in Kerrville/Kerr County are employed in the Hospitality Industry Ad Campaign and Social Media Approach is Having a Positive Impact on Visitor Numbers Kerrville HOT Tax Collections have increase each year since 2012

Q & A

Event Center Sales Tool

Kerrville Market Challenges

43

• Lack of a Conference Center • Kerr County Hill Country Youth Events Center

– Improvements – Name

• Aging Hotel Inventory • Signage

– I-10 Visitor Center Exit Signs – Electronic Sign on Visitors Center

Wrap Up The tourism/destination marketing industry is a relationship based industry. Through those relationships we’re working diligently to emulate industry practices and procedures that make communities like Fort Worth, Grapevine, San Antonio, Fredericksburg and other industry progressive communities vibrant. Those efforts will help make Kerrville a top Texas destination

Wrap Up Very qualified, professional, cohesive staff that is respected locally, statewide and industry wide;

Staff members are also involved in community activities helping to improve the quality of life in Kerrville for citizens and visitors alike.

We are all grateful to work for an organization that has the backing of a dedicated Board of Directors, a supportive City Council and City administration; and, we appreciate the positive working relationship with local and area media.

Kerrville Market Challenges

46

• Lack of a Conference Center - Largest meeting space is 20,000 sq. ft . • Aging Hotel Inventory - Newest properties are approximately 12-13 years old • Signage

– I-10 Visitor Center Exit Signs

Kerrville Convention

& Visitors Bureau

2014 Update September 23, 2014

Newsletter “Kerrville Online”

Recommended Electronic Sign

Recommended Electronic Sign

Branding Shift

New CVB Brand

Welcome

Council Member

Bonnie White July 28, 2015

Website Update

• Site is much more interactive and user friendly • Example: Events can be added to the website by the

event planner and approved by KCVB staff.

• Built and designed by a company specializing in Hospitality Industry Websites • Changes/Updates can be made to website by KCVB staff

• Better Use of Meta Tags and Key Words for Search Engine Optimization

• Responsive Website – will pull up on any screen

Regions Where Visitors Originate

Source: Customer Contract/Survey 55

Southwest 3.5% Far West 2.8% South 2.7% Southeast 2.6% Midwest 2.5% Northeast 1.6% Central 0.9% Mid Atlantic 0.8% International 3.27%

Kerrville HOT Collections Comparison FY 2011-YTD

0.00

20,000.00

40,000.00

60,000.00

80,000.00

100,000.00

120,000.00

140,000.00

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept

Kerrville HOT Collections Comparison YTD

FY11/12 FY 12/13 FY 13/14 FY 14/15 YTD

Kerrville CVB Brand is Working

Branding Update Complete

Governed by a Nine Member Board of Directors

•

The Board composition includes Hotels, Restaurants,

Attractions, Ranchers, Retailers, Business and

Community Leaders

Redirect Advertising Campaign

36 Months Ago 91% of Advertising

Budget was directed to Print Media

KerrFest 2015

Website Updated

Social Media Facebook Paid Ad Projects

Kerrville Downtown Festival of the Arts

• Reached 16,080 People

• 576 Likes

• 53 Comments

• 108 Shares

• Post was clicked 496 times

• Link to Festival Website clicked 72 times

• 43 New Followers to KCVB Facebook Page

Kerrville Folk Festival • Reached 21,296

People • 562 Likes • 57 Comments • 145 Shares • Post was clicked 657

times • Link to Folk Festival

Website clicked 79 times

• 27 New Followers to KCVB Facebook Page

KACC Southwest Gourd Show

• Reached 14,912 People

• 468 Likes • 47 Comments • 57 Shares • Post was clicked 369

times • Link to Gourd Show

clicked 38 times • 16 New Followers to

KCVB Facebook Page

Members of the Arts Co-Op used advertising funds to extend their Social Media Reach

Digital Targeted Marketing Campaign

Key Words • Texas Hill Country • River • Outdoors • Wine Tasting • RV Parks (Updated Monthly/Seasonally)

• Robert Earl Keen • Winter Texan

Competitive Destinations • Fredericksburg • Boerne • Bandera • San Antonio • Hill Country

Targeting Texas Internet Users based on the following Search Criteria

Livestock Show

Where Visitors Come From

Source: Customer Contact/Survey 66

7. San Angelo 4.4% 8. Bryan/Beaumont 2.9% 9. Lubbock/Amarillo 2.2% 10.Palestine/Texarkana 2.1% 11.Misc. Texas 11.5%

Challenge to You

Will you . . . help the

CVB bring your next

meeting to Kerrville?

Kerrville’s Top Convention Producers – July 2015-July 2016

68

Group Room nights Dollars Generated Texas Chief Deputies 669 $223,714.00 Texas A&M Forrest Services 580 $193,280.00 Bikers Against Child Abuse 575 $192,280.00 Texas District Court Alliance 480 $160,512.00 Texas Sheep & Goat Raisers 464 $155,162.00