IdeaLink - December 20, 2011

Update to convention center debt levels and funding implications for the CVB

Previously I shared with you that, in anticipation of the redirection of our hotel room tax dollars (required to satisfy debt services for the Lancaster County Convention Center), we would be meeting with various partners to identify solutions that would ensure the ongoing viability of this CVB.

At the time I wrote, we had already met with one Lancaster County commissioner, along with all stakeholders (Penn Square Partners, Wells Fargo, City of Lancaster and the Lancaster County Convention Center Authority [LCCCA]). In the final two commissioner meetings, we essentially discussed the same information that was reviewed with Commissioner Chairman Scott Martin. We were very clear that we had a position precluding an increase in the hotel tax to offset operating or debt deficiencies of the convention center (we provided a printed copy) and are advocating for a different community based resolution involving all the current stakeholders. For example, one solution advanced was a newer more aggressive sales strategy. Based on current projections, the fund reserve that the LCCCA is required to maintain at a certain level will drop below the minimum amount and the 20% of the hotel tax (currently set at 3.9% of which the CVB receives 20% and the LCCCA receives 80%) the CVB receives will be diverted to the LCCCA in April of 2012.

In addition to the stakeholder meetings with each of the commissioners, CVB board leadership and staff attended the regularly scheduled PDCVB/LCCCA Chair meeting last week. We reviewed the separate commissioner meetings and discussed where we stand. We were both forthcoming and committed to continuing dialogue. In a spirit of continuing cooperation, LCCCA Chairman Kevin Fry noted that they would give us any information we needed and would further talk with anyone who had specific questions about the current debt situation. This was offered up as we discussed creating a task force aimed at addressing this funding crisis, as well as educating members/community leaders to the current situation.

We also have discussed that the task force described above would be comprised of past CVB board chairs. We are currently in the process of recruiting those individuals and will advise you of next steps within that arena shortly.

We, along with other key stakeholders, will continue searching for solutions that include ongoing funding of the CVB, contingency planning, operational efficiencies, and continued viability for the LCCC.

As this process moves forward, it is our goal to keep you informed of the progress made on this very critical matter as our members are our key stakeholders.

Questions? Please contact PA Dutch CVB President & CEO Chris Barrett, at (w) 717-391-6001 or (c) 717-682-5664.

Examining current industry trends & forecasts

Dr. Suzanne Cook, with U.S. Travel Association, shares that “With the holiday season upon us, the travel industry has reason to be in good spirits as we close out 2011. After a tumultuous year for the economy, challenges remain in this period of ongoing recovery, yet there are encouraging signs. New surveys show increasing consumer optimism, confidence and spending intentions. The U.S. economy added jobs in November, and the travel industry continues to be a valuable job generator. Global air travel is still gaining, but is showing some slowing growth in the U.S., while hotels continue to rebound across business, leisure and group travel segments.” More

Travel Trends While Europeans continue to lead the world in vacationing, more Americans say they’re planning to travel this year. Other leisure travel trends include multigenerational vacations, destination weddings and milestone trips. Business travel demand appears to be on the rise and the numbers of meetings are expected to rise. International travel continues to grow and arrivals to the U.S. are projected to rise year-over-year. More

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Please contact Deb Sellers with any questions, 717-509-6394.

Lancaster County tourism in the news

Our communications staff works with our members to garner free publicity for Lancaster tourism in media outlets around the region, the country, and the globe. Below are just a few recent results of these efforts on behalf of our world-class travel destination.

Through the end of November 2011, the PA Dutch CVB has realized more than $11.5 million in domestic ad equivalency through our earned media (PR) efforts. Ad value is the amount it would cost to place an advertisement of equal size to the article in the publication.

• “New Gift of Lights Attraction Adds Sparkle to a Lancaster County Christmas”
  Yahoo! News (one of 165+ online stories from a PR Web release), 11/30/11
   
• “Worth the drive: Woolworth of yore” (re. Natl. Christmas Ctr.)
  Martha Stewart Living, Dec. 2011
   
• “Bet the Farm” (re. Downtown Lancaster arts scene)
  DC Modern Luxury, Dec. 2011
   
• “All I Want For Christmas”
  Baltimore Magazine, Dec. 2011
   
• “Holidays, Pennsylvania Dutch Style”
  FYI Philly on WPVI-TV Philadelphia, 12/17/11
  (click on second “FYI” icon under the main video screen, and the three and a half minute piece starts at the 3:23 mark)

Legislative update

As the legislature gets ready to adjourn for the holiday break there are several significant initiatives that we wanted to update you on:

Privatization of the state liquor stores – HB 11
Representative Mike Turzai (House Majority Chair) has introduced HB 11, which would privatize the state liquor stores. HB 11 was introduced in the House Liquor Control Committee on September 13, 2011.

The House Liquor Control Committee held a hearing on HB 11 on December 13 and during that meeting amended the bill with some significant changes. HB 11 was then voted out of committee on a party line vote of 15-10.

Some of the changes the proposed amendment would make to the current liquor system include the following:

• Wholesale discount for licensees would be increased from 10 percent to 15 percent.
• The PLCB would remain the sole outlet for spirits in Pennsylvania and would retain the ability to sell wine.
• Beer distributors would have the opportunity to enhance their current licensees to be able to sell wine.
• Beer distributors would be able to sell beer in any configuration beginning with a six-pack, while restaurant licensees would be able to sell up to a 30-pack of beer.
• Wholesalers may pay a $100 million license fee to distribute wine, and may sell or deliver to distributors, PLCB, hotels and restaurants.
• Several modernization proposals were added, some of which the Pennsylvania Restaurant Association (PRA) has and will continue to oppose, including market-based flexible pricing.

There is some thought that the full House could vote on this bill within the week. Regardless of what happens in the days ahead, there is still an expectation that this will be a 2012 issue as the state Senate would not take it up until next year.

A Public Financial Management (PFM) study shows the PLCB’s profitability will continue to decline in the coming years and that only a privatized system affords the state the best opportunity for real customer convenience and optimal financial benefits for Pennsylvania’s residents.

Post Labor Day school start
On December 8, the House Tourism Committee held a hearing on HB 137 (Representative Godshall) – Post Labor Day School start initiative. John Oliver testified on behalf of the PA Assn. of Convention & Visitor Bureaus (PACVB).

The Pennsylvania Amusement Park Association, Pennsylvania Convention and Visitors Bureau Association, Pennsylvania Golf Course Owners Association, Pennsylvania School Boards Association and the Pennsylvania Association of School Administrators also testified.

Our hope is to get HB 137 voted out of committee early next year and to the floor of the House for a vote. We have not been successful in doing that in past years. A recent survey done by Susquehanna Polling and Research this fall of registered voters showed that 55% of voters support school starting post Labor Day; that is up from 47% in 2006.

Representative Godshall, sponsor of this legislation, makes a good argument for the issue in a letter he addressed to Chairman Stern.

Pennsylvania Tourism Commission legislation introduced
As I mentioned earlier, the Pennsylvania Tourism Commission legislation has now been formally introduced by House Tourism Chairman Representative Sterns as HB 2056 and was referred to the House Tourism Committee on December 6.

We have been working on changes to the legislation based on feedback at the September 21st hearing and subsequent conversations. Many of these comments have been drafted into the form of an amendment that will be attached to HB 2056 and discussed in the House Tourism Committee. All of our House members are co-sponsoring this legislation. Stay tuned for more details.

Lancaster Chamber encourages you to “Think Local”

Think Local is a Lancaster Chamber led, community-wide initiative to improve our economy by encouraging consumers and business decision makers to support local businesses when making purchases. The primary goal of Think Local is to stimulate and accelerate the local economy by keeping our dollars in the area, where the impact can be significant as the dollars recirculate.

The PA Dutch CVB has signed the Think Local Declaration of Understanding and encourages you to do the same. Core principles of the campaign highlight the positive results when consumers and business leaders support area companies:

• More money stays in the community
• Local jobs are created and sustained
• The local community and economy are strengthened
• Our quality of life is improved
• Customer service is enhanced

As each business signs the declaration they will receive a packet in the mail inclusive of a Think Local folder, reusable bag, window cling, and questions to ask before making a purchase. They will also receive an email with the logo and logo guidelines so that they can create their own Think Local company-centric logo.

More information and Declaration.

Great reads

• How to get along with TripAdvisor
  Although this article was written with hoteliers in mind, its application is far more reaching.
  As an online marketing manager for a hotel there are several actions you can take to make it a happily-ever-after relationship with TripAdvisor. Follow these basic guidelines to improve the hotel’s TripAdvisor listing and foster a positive affiliation with the review site.
   
• Five commandments of small-biz email marketing awesomeness
  Is email marketing for your small business even worth doing? Yes, if you do it well. To ensure your campaigns are effective, you should be practicing the Five Commandments for email awesomeness.
   
• 5 tips for working with television journalists
  Read these 5 tips to help you get the most out of working with television journalists and enhance your broadcast efforts.

December board meeting recap

The PA Dutch CVB Board of Directors met on December 8. During the meeting outgoing board members Randy Patterson, Jennifer Buchter, Kevin Molloy, Vicki Kulina, and Chuck Simmons were honored. Afterward the 2012 board roster was presented. The 2012 board roster will be posted to the members’ microsite shortly. During the meeting, the board reviewed and approved the 2012 budget and continued discussions regarding the financing issues of the LCCC. The November minutes are now available for viewing in the member section of our website. The December minutes will be available after they are approved by the board at the next meeting in January. Past board minutes are available on our members’ microsite.

Industry newsmakers

Sight & Sound Theatres® unveiled its first motion picture, Voices of Christmas, at Penn Cinema earlier this month.

Join us in welcoming these new members

• Gift of Lights at Elizabeth Farms
  Bill Coleman, 626-8733
  www.elizabethfarms.com
  Approximately 1 mile of drive-thru light display with hundreds of thousands of twinkling lights brings the yuletide season to life. Some 120,000 people are expected to experience this inaugural season by taking in the lights and enjoying the festivities.
   
• Millers Crossing
  Sue Gould, 871-9560
  www.rentberger.com/millerscrossing
  Millers Crossing, a stellar apartment complex, boasts spacious floor plans as well as a professional atmosphere. Enjoy the luxuries of a fitness center, sparkling swimming pool, and a cyber cafe at an affordable rent.
   
• Pazzaro’s Pizza & Grill
  Manuel Hernandez, 687-3670
  Gourmet pizza and sub shop featuring homemade breads and fresh dough pizza. The pizza is hand tossed and the crust is deliciously thin.
   
• Saint James Episcopal Church
  Shannon Pipkin, 397-7548
  www.stjameslanpa.org
  Historic Church was founded in 1744 in Downtown Lancaster with many patriots of the Revolutionary era buried in the churchyard. It’s one of the finest historic sanctuaries in PA, dating from 1820.
   
• Tanger Outlets Hershey
  C.E. Simmons, III, 520-1345
  www.tangeroutlet.com/hershey
  Find great savings in more than 60 brand names stores at the Tanger Outlets in Hershey (formerly Hershey Outlets) including LOFT Outlet, White House|Black Market, Jones New York, Under Armour and more.

Questions or Comments?

Contact Janet Wall at jwall@padutchcountry.com, or 717-391-6005

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