Bill Geist's Zeitgeist

This is 50

Last night marked the 50th Anniversary of the birth of what is today known as Destination Madison, an organization I was proud and honored to lead during the first half of the '90s.

Thanks to Destination Madison for the kind shout out during last night's festivities regarding my part in securing the public referendum vote to build the world-class Monona Terrace Convention Center that served as the jumper cable for Madison's renaissance. 

And having my successor Deb Archer honored for her amazing 25 years at the helm of the organization was a true treat for Terri and me.

And here's to the next 50...

Bigger than the "Big Game"

What does it say when an event that simply picks future winners and losers without a resultant highlight reel is more important than the Super Bowl?

That's what the Mayor of Detroit said yesterday in announcing updated plans to hold the NFL Draft in the Motor City next April. “This is potentially bigger than the Super Bowl,” Mayor Duggan said. “Only 60,000 people can get tickets to the Super Bowl. But for the NFL Draft, hundreds of thousands can get in — and they stay for the weekend.”

That's why Detroit is reportedly changing the playbook from past NFL Drafts and concentrating all its events downtown. According to Duggan, “When you have 300,000 or 400,000 people coming from across America, we want to change the image of Detroit in their minds once and for all. We felt like to do that, we had to build the draft into the city.”

And, ain't that the whole point of events? To change perception of a destination?

Like Detroit did in 1896...when it launched a never-before utilized Convention Sales strategy to land national events to showcase the city to potential investors.

The Conversations in Which Urban DMOs Must be Engaged

The Plague emptied our downtown cores. There is a general belief today that downtowns continue to struggle. And, without our downtown cores, destinations will struggle to position themselves as viable choices for visitation, residency and investment.

But, a new study offers some hope. And, if local leadership still doesn't respect the power of the Visitor Economy, check this out: Across the 26 cities studied, visitors comprised two-thirds of people downtown, underscoring the importance of developing downtown attractions. While local variations influence a city’s recovery, the report notes that “in general, cities that have strong overall recovery rates tend to have a robust leisure and hospitality industry."

Like we've been saying...

Is It the Beds?

Another reason why the Destination Marketing Organization sector needs to stop saying "heads in beds," stat.

Misguided legislators have long advocated for Room Taxes to go towards alleviating homelessness. But of course, we both are in the business of beds. Makes (im)perfect sense.

Now, a legislator in Ohio is suggesting a change in Room Tax statutes to allow revenue collected from overnight stays in hotels to be used to fund...wait for it...a new County Jail.

It's the Beds. Gotta be. How else would someone who has at least something going on (as she managed to get elected) come up with such a boneheaded suggestion?

A Jail benefits residents. As such, its funding should come from a County's General Fund. Tourism Taxes were levied, often with the support of the hotel community, for the purpose of enhancing the economy, increasing Quality of Life and creating jobs. And don't try to say that locking up bad guys and gals improves Quality of Life. That dog don't hunt.

Redirecting such revenues to house criminals does none of those things. And, my guess is that County Supervisors won't use General Fund revenues to do that either.

So where does that leave a local economy?

Bueller? Bueller? 

Image: The Ohio State Reformatory in Mansfield (home to "Shawshank Redemption")

Short Term Rentals & the Housing Crisis

The basic tenets of Supply and Demand would certainly support the concept that transferring homes and apartments into Short Term Rentals would cause remaining housing prices to increase. To be fair, Airbnb responds: "There are a number of complex factors driving today's housing affordability crisis — from growing income inequality, to decades of exclusionary zoning, and even changing location preferences post-pandemic, including the rise of remote working from home — but many experts agree the primary driver of the affordability crisis is chronic underproduction of housing, not short-term rentals. Unfortunately, short-term rentals, which in most cities make up a tiny portion of local housing stock, have become a convenient but misguided scapegoat for a housing crisis that started long before the founding of Airbnb."

Rebuttal accepted...but then, there is what has happened in Irvine CA since that community banned STRs: Within two years of the ban, long-term rents decreased significantly; roughly 60,000 rental units in the city saw a 3% rent decrease, on average.

It's a fascinating read in the ongoing conversation of how to balance the needs of all sides.

Image Credit: Tristen Rouse / St. Louis Public Radio

Priorities Indeed

Over the weekend, I stumbled upon a letter to the editor of the Mountain Express that took issue with the salary of Visit Asheville's Vic Isley:

"Victoria “Vic” Isley’s new contract as the director of the Buncombe County Tourism Development Authority makes her the highest-paid public official in the county. So now we know conclusively what Buncombe County prioritizes. Now we understand that tourism is more important than education, jobs, roads, DEI, health care or absolutely anything else."

The writer is absolutely correct. Tourism is the most important investment the community can make with its Room Tax collections...because it drives the non-resident revenue that government requires to support education, jobs, roads, DEI, health care and absolutely everything else.

Any other questions, Mark?

New on the DMOU Podcast: The Illinois TID Win

It was 2011 when several DMO pros in Illinois began discussing the potential to introduce State legislation to add Tourism Improvement Districts into their funding mix. Earlier this year, that legislation finally passed and was signed into law. Rockford Area CVB CEO John Groh and Visit Quad Cities CEO Dave Herrell return to DMOU to share the up and down story of persistence, negotiation and being ready when the political winds were right. Even if your State already has TID legislation in place, this episode is a fascinating primer on moving an initiative through the political process.

It's just one of over 125 conversations waiting for you in the DMOU Vault.

Do the Math

According to a recent article in Fast Company, office space takes up between 70-80% of all real estate in many downtowns. With so many of us continuing to work remote, that space is going unused...and, in many cases, unleased.

In San Francisco, it is estimated that only 40% of the pre-plague workforce has returned to the office. And, as the average worker in that city spent $168 per week near their workplaces...that pencils out to $1.2 billion in lost revenues per year to the surrounding restaurants, bars, coffeeshops, retain outlets and services businesses.

Is it any wonder so many of those businesses (even those who could find workers) are now shuttered? Which then sets about a vicious cycle of why would anyone would want to return to the office if there's nothing to do in the blocks surrounding one's building.

Cities that intend to survive are going to hafta get real creative...sooner than later...before it's too late.

 

What a Concept

Rather than focusing on building walls to keep immigrants out...why not find a way for them to earn citizenship other than taking pointless classes on American history and our government (which, of course, is a global joke) and a final exam?

Greece has just announced it will use migrants to build an airport and subway station (as well as other public works projects) as a pathway to citizenship.

You wanna live here? You gotta earn the right.

Fascinating concept...

New on DMOU: Rick Antonson

If there is a short list of thought leaders in the DMO world, Rick Antonson is always on that list. He was our first guest 20 years ago on the DMOU Teleseminar and our first guest on the the resurrected DMOU Podcast (and that says a lot). On this episode, he’s back to talk Destination Marketing…but also to share thoughts about his latest book, Train Beyond the Mountains: Journeys on the Rocky Mountaineer. Rick and I go deep into the meaning behind travel, the connections made and the life lessons learned. It’s a wide-ranging conversation that I believe you’ll love with one of the most eloquently expressive voices of our era.