Bill Geist's Zeitgeist

Another Role for DMOs

I can't remember when I began to evolve the concept that DMOs should be a community's marketing agency for every potential consumer for every possible reason (not just Tourism). Mid 90s?

Our 2020 position paper solidified our position on the topic...but this recent study has expanded our view even further.

Government needs Gen Z employees, stat. But, Gen Z can often find more lucrative contracts in the private sector...and working in a governmental environment isn't necessarily appealing to many in the cohort.

Thus, government needs to do a better job marketing to Gen Z. But, Government isn't typically known for its prowess in marketing.

Its DMO is.

Just another reason that government needs to broaden its contract for DMO services beyond visitor acquisition to talent acquisition.

And most DMOs are here and ready. Just sayin'

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 Supreme Court's Existential Moment

The greatest tribunal in the world. One of the pillars upon which this country is founded.

And yet, 58% of Americans disapprove of the actions of the Supreme Court.

And now, following the lead of Ohio's historic vote to preserve a woman's right to choose, 11 other States are poised to raise a middle finger to the highest court in the land.

Don't ask how we got here...because we know.

Ask how we get back to center.

The New End Around

It's not exactly "new," but that legislators in two States have employed this tactic in as many days shows how brazen several have become because they don't think we're paying attention...or that we won't remember the next time they're up for re-election.

Earlier this week, we shared the boneheaded attempt of a legislator to redirect Room Tax revenue in Ohio to funding jails. We've just learned from some friends in the Buckeye State that she just slipped an amendment into a fast moving bill that would allow communities to increase Room Tax by 2% specifically to fund jail construction.

And, here's why I call it an end around. For those that are not fans of the game of football, an end around is a play that is typically not expected by the defense. In most offensive plays, the Quarterback hands the ball off to a running back or passes the ball to a receiver (or, if you're Justin Fields, you just keep it). An end around is when the receiver doesn't run down the field to catch a pass but, instead, runs laterally behind the QB and takes the ball around the other end of the field. In essence, it's a trick play because defenses generally don't expect it.

And that's what our Ohio Legislator did. By attaching the amendment to another bill, she eliminated the opportunity for public testimony on the merits of the bill. Those that could explain why this is a sensationally bad idea for Ohio's economy were blocked from offering that side of the argument.

And, it happened this week in Wisconsin, where an amendment to another bill threatened the viability of wedding barns by limiting the number of days alcohol can be served. The measure, supported by the Tavern League and large event venues, never got a hearing...because it was an amendment. Thus, small business owners were never provided the opportunity to plead their case to legislators who are generally supportive of small business. All they heard was big business saying this measure ensures public safety (what a bunch of horseshit).

As a political operative, I can appreciate the elegance of an end around.

But it's a shitty way to run a State's economy.

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

Pushing Back on Extremism

Destinations International has been fairly vocal in its opposition to travel band and boycotts. While some have been successful in reversing political policy initiatives...they all hurt the very residents and workers that depend on a robust visitor economy. 

Many of this blog's regulars will remember Charles Jeffers, a DMO pro that served, for a time, at Destinations International. He currently serves as the interim executive director of the American Occupational Therapy Association, an organization that is poised to welcome 10,000 attendees to its next annual convention...in, of all places, Florida.

Check out this op ed piece on why they're coming to Orlando. It's an angle that clearly supports the concept that we can do better than boycotts.

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.

Thanks to the Tourism Teacher

The Tourism Teacher is a relatively new podcast, hosted by our friend Andi Jaspersen, that is targeted to the padawans in the Tourism and Destination Marketing space. Part of Adam Stoker's Destination Marketing Podcast Network, the podcast has just wrapped its first season and I was recently honored to share my take on DMO Board Governance.

What we do in Destination Marketing isn't easy to understand for those from the outside world. Welcoming new employees or interns (or new Board members) into your DMO? The Tourism Teacher is a great primer to get people up to speed...fast.

Thanks, Andi. I loved our conversation.

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.