Bill Geist's Zeitgeist

A DMO in 30 Days?

When we explain the advantages of a Destination Marketing Organization to those that don't quite understand the concept, we often share that the barriers to entry in generating a Return on Investment in Tourism is typically faster than most Economic Development strategies, which can take years of relationship-building to see a project come to fruition. But, starting a DMO in 30 days? This we gotta see.

The cities of Bryan and College Station TX have partnered (sometimes uneasily) to market the region under a single DMO for decades. That arrangement began to disintegrate when the City of College Station announced it was pulling out of the DMO a couple months ago. Last week, the City of Bryan said it would launch its own DMO within 30 days.

In making the announcement, Bryan's Deputy City Manager Joey Dunn said partnering with College Station, Texas A&M University and Brazos County also will critical responsibilities for the new organization since "none of us work alone in the tourism business." Which, of course, would have been easier if everyone could have worked through their issues before all this duplicative drama. But hey, politics is politics and community ego is overrated. 

This should be interesting to watch.

 

They'll Pay

I'm the last person to advocate for higher visitor taxes if your destination is over the national average. And, I'm the first person to encourage businesses to charge more if they have a stellar product or experience.

And, this article from Forbes bears me out.

In an article about how residents of Amsterdam are breathing a sigh of relief as tourist numbers have dropped in that beleaguered city, we see how taxing visitors to change travel habits hasn't worked: Amsterdam has one of the highest tourist taxes in Europe at €3 per person per night — added to the tax of 7% of the price of a room and Airbnb increasing its rates by 10% per night while cruise passengers were charged €8 per person — the over-tourism had not weakened the numbers in any radical way.

As the late, great Richard Pryor famously said in Silver Streak, "pay the man."

 

Well Played, My Friends

Today's issue of the Z-News (our monthly e-mail newsletter) notes the retirement of 7 (count 'em, seven) DMO CEOs in just the past month. That's simply insane...but, it's a sign of the times.

If you didn't receive today's edition (which also features my commentary on the future of Strategic Plans and links to new DMOU Podcast episodes with Visit Jackson's Rickey Thigmen and Visit Bentonville's Kalene Griffith), click here for the web version, and here to never miss an issue.

And, to those stepping away from the Big Chair, congratulations on starting the next chapter of your lives. Y'all done good.

Who Could Possibly Oppose This Initiative?

In an attempt to jump-start America's struggling travel and tourism industry, Arizona Senator Martha McSally has proposed the American Tax ebate and Incentive Program (TRIP...get it?). It would provide up to a $4,000 tax credit (per taxpayer) for Americans who travel within the U.S. through the end of 2021. In other words...we'll all be able to write-off up to $4,000 in leisure travel expenses. 

It does somewhat re-codify the recently abandoned concept (by most) that tourism is only tourism if the trip is more than 50 miles. But, it's a small trade-off. And honestly, they had to put some limits on the program or people would try to claim their staycations.

More importantly...it creates a $50 million grant program for Destination Marketing Organizations. Yeah...finally.

Who could oppose such a bill?

Besides a fiscal conservative that hates DMOs, I mean.

Doing Right

One of the reasons tourism and hospitality remains the Rodney Dangerfield of careers for some is likely forged in their experience as a past (and pitifully compensated) employee. For others, it's likely the elitist attitude that service jobs are somehow beneath them (I no longer tolerate those people in my life). But, that may have its roots in the whole pay thing.

I'm not here to debate the $15/hour construct but, can we start to have the conversation that hospitality should increase pricing rather than pay sub-standard wages? If you need a nudge in that general direction, check out this story from Galveston.

The Spot is a gulf-side, multi-level restaurant (with locally-sourced seafood) and entertainment venue. Like most restaurants in this country, they had to close their doors to in-house dining mid-March as "the VID" became real. Sales dropped 90% and 171 of 200 employees were put on waivers. The Spot owner Dennis Byrd noticed that, as those personal stimulus checks began hitting bank accounts, sales started to tick up. And, he had a fascinating idea.

"What if I over pay my team members," he mused. Would they then go out and help stimulate the local economy, which would help everyone. A true "Pay It Forward" concept.

Dennis increased his veteran employees to $20/hour and everyone else to $15/hour. Those on salary got $250 per pay period for "hazard pay." The cost? Over $650,000.

Mind you, the business was still more than 80% off, year to year. But, it was the right thing to do...and Galveston took notice.

The Spot had the biggest May in its 22-year history.

Dennis? I don't think you overpaid your team in the least. And, I can't wait for others to take your lead and run.

Do right by your people, ensure that your customers know you've done right...and we'll pay whatever you charge.

 

Where Are You?

These first few weeks of June have opened yet another door. What we do with the opportunity may define us.

The conversations about race in the DMO space have been challenging, yet respectful. I'm sure that the US Travel webinar opened eyes and the latest episode of the DMOU podcast hopefully suggested some next steps.

But, the open letter from the National Coalition of Black Meeting Professionals? Shit just got real, babies.

In the missive, Chairman Jason Dunn outlined the genesis story of the organization: In 1983, our founders assembled, organized and created a platform that spoke to the inequities, disparities and exclusion of African Americans within the industry before the word "diversity" was popular.

He also said this: Over the last few weeks, our country has come face to face with the ugliness of racism, police brutality and semantic injustice. Demonstrations, peaceful protests and civil unrest have taken place in ALL 50 states and around the World. The NCBMP Board, members and partners applaud the hospitality and events industry associations and corporations issuing statements to their employees, constituents and customers denouncing racism and injustice of any kind in their organizations and throughout society. While NCBMP applauds organizations and companies that have taken a stance and are standing in solidarity. We have also kept note of those who have remained silent. Your silence is loud and deafening.

And then this: We do business with our friends and one's silence jeopardizes our relationship.

I know that some may view this as a threat; something just short of a boycott. And, we all believe boycotts do serious harm to our industry. But please take a step back and view this for what it is. A statement with which we all can agree...we do business with our friends.

For every DMO out there...it's time to be that friend.

 

The US Travel Conversation on Race

If you have yet to check-out last week's online conversation with Destination DC's Elliott Ferguson, Association Forum's Michelle Mason, ADARA's Brandon Meyers and Los Angeles Tourism & Convention Board's Ernie Wooden, hosted by US Travel...make time this week to do so.

Powerful stuff, y'all.

Ready to Take THE Pledge?

We are loving the ingenuity of Destination Marketing Organizations around the world that are developing and deploying Pledges that go both ways (visitors respecting destinations and businesses promising a safe environment). But, the Pledge we all need to be intentional about was offered up yesterday by a coalition of 19 Black DMO Executives.

In their Open Letter, they spoke their truth and asked hard questions; questions that typically get a "sure, we do that." But, if our industry really did, there'd be more than 19 signatures on this document. N'est-ce pas?

It's time. Pledge that you'll do more than talk about it, find tired excuses and continue to kick the can down the road.

It starts at home with our DMO Boards and Professional Staff. We all know we can do better. We must.

Time Has Come Today.

Here's (Another Reason) Why DMO Aid is Crucial

When a crisis hits, messaging from those impacted often becomes frantic and scattered. But, for some, it becomes crystalline. 

That was the case when thee Madison Room Tax Commission (a layer of oversight in Wisconsin that recommends to government how Room Tax revenues should be invested) met a couple weeks ago. In one of the best presentations I've seen by a DMO CEO, Deb Archer (beginning at the 44:30 mark) hit the perfect note at the perfect time: Destination Madison's work supports the livelihood of 22,000 people in her county. And, if Madison is anything like the national average...that means 11,000 residents need Destination Madison to be the first in line for funding...not the last (as the Manager of the attached Convention Center hotel said so eloquently at the 2:04.45 mark). For, if Destination Madison is budgetarily unable to attract visitors back to the Mad City, directing revenues to empty facilities is kinda counter-productive.

Over the weekend, I saw another angle that I had never considered...and it came from a column on Hospitality.net from Tom Hazinski and Joseph Hansel of HVS: the lack of federal support for Destination Marketing Organizations "has placed at risk the substantial investment of state and local governments in the tourism and hospitality industries."

In other words, without an aggressively funded marketing effort, State, City and County investments in convention centers, performing arts centers and other infrastructure assets will collapse, plunging local governments into facing drastic cuts to resident services.

Keep the innovative messages coming, people. We're gonna need every one to stave off the knee-jerk reaction of "we all need to share the pain evenly."

No. We don't. Not income generators like DMOs.

 

The View from Within

There's no possible way I could have read every DMO's statement regarding their position on the events around the country (and world) since the death of George Floyd (and, I've read a bunch).

With all due respect to all the inspirational messages out there, I was taken most by Visit Jackson CEO Rickey Thigpen's missive, published last Friday in the Northside Sun.

It is so worth your read.