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HomeMy WebLinkAboutMinutes Corpus Christi Convention & Visitor Bureau - 01/21/1993 1 SM GovI; CCACVB BOARD OF DIRECTORS MEETING MINUTES THURSDAY, JANUARY 21, 7993 2:00 PM DEL MAR COLLEGE, WEST CAMPUS RESTAURANT MANAGEMENT BUILDING /. Call to Order The meeting was called to order at 2:O7PM by Chairman Al Jones. Chairman Jones noted that Stern Feinberg would be in charge of ensuring that the Roberts Rules of Order were adhered to during Board meetings. He welcomed E.J. Schanfarber, a newly-elected Director on the Board, who will be replacing past Director, Sam Poteet (ATTACHMENT Al. Mr. Schanfarber's term as a Board of Director will run through July 1994. Currently, he is the General Manager of the Bayfront Connection which includes the Marriott and Sheraton hotels. 1/. Roll Call Chairman Jones called the roll. Directors attending: Al Jones (Chairman), presiding Stern Feinberg, Ricardo Sanchez, Berney Seal, Cathy Harrison, Roy Mayo, Lillian Murray, Shirley Pagan, Barbara Sheppard, Erich Wendl and Eugene Urban. Q Absent: Ed Garza and Bill Pruet. zAttending Staff: Keith E. Arnold, Rob Earley, Kelle Clark, Pat Rousseau, Dottie z Sylvester, and Ellen Walker. Q Guests: Doug Beach (TNT), Bob Cook (Caller Times), Mo Morehead (MDLI, Elaine V Motl (E.M. Marketing), Holly Osborn (MDL) and Noel Robin (TNT). CD Corpus Christi Area Convention & Visitors Bureau 1201 N. Shoreline, R 0. Box 2664, Corpes Christi.Texas 78403-2669 USA PCNB (512)882-5603. IS00-678OCIAN, FAX: (512)882-4256 CCACVB Board of Directors Minutes January 21, 1993 Page 2of7 lit Motion to Approve Minutes of October 28, 1992 and December 17, 1992 Board of Directors Meetings The above minutes were moved, seconded and approved by the Board. On behalf of the Board of Directors, Shirley Pagan thanked Dottie Sylvester for her recording of Board minutes over the past several months. IV. Approval of New Area Council Member A motion was made by Barbara Sheppard and seconded by Mr. Feinberg to approve Butch Farabee as an Area Council Member. It was approved by the Board. Mr. Farabee is currently Director of the Padre Island National Seashore which Mrs. Sheppard noted is an important tourism participant of the Area. His predecessor, John Hunter, had also been on the Area Council V. Approval of Bob Lacy, Jr. for USS Lexington Board of Directors On a motion made by Berney Seal and seconded by Mrs. Sheppard, Bob Lacy, Jr. was approved by the Board as a Director on the USS Lexington Board(ATTACHMENT B). Chairman Jones noted that Mr. Lacy, Jr. had attended the Lexington's Board of Directors meeting held earlier that morning. VL Presentation on Package Program Mr. Noel Robin of Texas National Tour Company, Inc. (TNT) which is based in San Antonio, was asked to give a presentation on his proposed package program for the Corpus Christi Area (ATTACHMENT C). He began by stating that all restaurants and attractions want to be in a package program. He went onto explain the concept of how the package program works and what his company's services entail. There are approximately 30,000 - 32,000 travel agents in the State of Texas which receive 10% of the cost of a packaged trip in their pocket upon booking a package. In developing a package on Corpus Christi, TNT has already approached rental car companies as we/I as some of the attractions (Texas State Aquarium, USS Lexington and Captain Clark's Flag Ship) for an "IT"package (inclusive of tips and taxes). The developed package is then sold only through qualified travel agents, tour operators, etc. TNT would provide an 800 line to answer any questions they might have on temperature, facilities, attractions, etc. The travel agent, etc. would put a printed package in the hands of the prospective tourist to entice them to visit Corpus Christi. Should the client decide to purchase the package, they would pay the travel agent who would in turn, after taking out their 10%, give the remainder of the money to 41- siA Gam CCACVB Board of Directors Minutes January 21, 1993 Page 3of7 TNT. TNT would send vouchers out to the suppliers (TSA, Lexington, Captain Clark's Flag Ship, etc.) who would take in these vouchers as a "promise to pay". The only requirement for the client purchasing the package program would be a minimum stay of two nights. It was also noted that expansion could be made for a dine-around package. Although the packages are marked-up, Mr. Robin's stressed that it is a "good deal" for the client because it is prepaid at home. Also, the client has a tendency to spend more when on vacation because they've already budgeted prior to the trip. He felt that the package program would make Corpus Christi easily accessible and easy to "sell and buy". Mr. Robin explained that he works with Doug Beach who owns the IMAX in San Antonio and noted that they are well staffed. They've been a part of packaging San Antonio over the past 12 years and Padre Island for the last 8 years. A question was asked if this program is what George Hext of Corpus Christi International Airport has been pushing for. The response was yes. Another question arose concerning the cost to the Bureau for this package. It was explained that with a black and white brochure there would be no cost but that there would be for a 4- color brochure. It was mentioned that a 4-color brochure would obviously make a "splash for Corpus Christi" as opposed to a black and white brochure. By participa- tion in the package program, Corpus Christi would get into travel agency computers. In response to the question as to what TNT considered as success in terms of numbers, Mr. Robins stated it would be "to make a profit in doing it". Upon further questioning, he elaborated that for a 2 night stay package in 1991, $306,000 had been made in retail sales (minus commission). He pointed out that TNT has increased travel agent awareness of the Island not only for Spring Break but for the wintertime also. Regarding specialized tours, Mr. Robins noted that their brochures state "we love groups -- let us plan". He stressed that TNT would be more than willing to package a group destination -- all the group would need to do is phone them and they would handle it. It was explained that the 30,000 - 33,000 travel agents in the State can't depend on walk-ins for business. They send representatives out selling package programs to clubs, senior citizens, etc. and it wou/d be available to have a brochure in their hands on Corpus Christi. It was noted that TNT's "fertile area"in Texas is San Antonio and Padre Is/and. After that, it is the states of Louisiana, Arkansas and the Mid-West. al fta CCACVB Board of Directors Minutes January 21, 1993 Page 4 of 7 To-date, 14 hotels have made commitments for the Corpus Christi package program. Through TNT's distribution system, it was noted by Keith Arnold that the CVB would be able to market Corpus Christi 4 states wide from Texas to the Canadian border with direct call follow-up by the CVB. VII. Presentation on Marketing and Strategic Plan Chairman Jones asked Mr. Arnold to give a presentation on "Vision Revisited-- Visitor Industry Analysis & Action Plan, February - July, 1993" (ATTACHMENT Dl. Mr. Arnold began by noting that the analysis and action plan had been reviewed with approximately 55 people at the Landing Restaurant last Friday. Favorable comments had been received from this group which was mainly comprised of hospitality industry personnel. Their overall comment was "we can't wait until the next step". One of the questions that arose during Mr. Arnold's slide presentation was what was considered the definition for "international". The response was Canada and Mexico for short and mid-term goals. It was emphasized that the family is a good target to have because of the multiple influence it can produce. Texas is currently one of only two states in the Country where over half of the money derived from tourism comes from within the state itself(56%). Among various points made, it was stated that the CVB needed a better data base -- that software was needed for motorcoach sales, management of travel agencies, etc. A need was also stressed to take CVB publications in-house in order to have control of creative layout. Mr. Arnold was asked for his observations regarding motorcoach. His immediate sense was that Corpus Christi could be a spin-off of destinations which are 2 -3 hours away and that it could attract single night stays from Mexico and San Antonio. He felt that this could be sold to tour operators with a goal of expansion to 2 - 3 night stays. Houston and the Dallas/Fort Worth area could be included as potential market areas as well. In response to where he thought San Antonio ranked nationally in motorcoach, he felt it was "extremely high" and that in Texas it is probably the highest motorcoach destination. Regarding a question on software expansion for the CVB, it was explained that they could not use the TDOC's software. The CVB would have to license the software separately. The TDOC has a good format for the CVB to follow but the CVB cannot share a program with them. It was reiterated that the "Vision Revisited... "is basically a look and overview of what the CVB would like to see happen for the 1992 - 1993 fiscal year. It was suggested L CCACVB Board of Directors Minutes January 21, 1993 Page 5of7 that a Board of Directors Retreat be held for the 1993 - 1994 Marketing Plan with long term goals developing from that point on. Lillian Murray commended Mr. Arnold and his staff for the Hospitality Industry Input sessions that were held particularly because they not only met with the people but reported back to them. She felt that the CVB was "better focused with this plan" in their utilization of money. At this point, a Summary of "Vision Revisited" (ATTACHMENT E) as well as the CVB Financial Statement (ATTACHMENT F) was handled. The Summary outlined suggested reallocations, cuts and costs that would take place in order to facilitate the implementation of the analysis and action plan. It was explained that the quantity of the 4-color brochure would be 50,000 - 75,000. Mr. Arnold noted that an RFP (request for proposal) for a new fulfillment service was out to facilitate a better response to inquiries. It was also mentioned that a combined voice-mail system with the Chamber of Commerce was being looked into. The Visitor Information Centers would stay open although their "inner workings" would be looked at over the next three weeks. Chairman Jones asked for the sense of the Board on the appropriateness of the action plan and if they had any problems with it. The response was favorable. On a motion made by Ms. Murray and seconded by Cathy Harrison, the Board approved acceptance of "Vision Revisited -- Visitor Industry Analysis and Action Plan". A recommendation to accept the Summary was addressed next. Although the Marketing Committee of the CVB has not seen the Summary, Ms. Murray expressed trust in the CVB staff's thoughts on reallocation. Mrs. Sheppard also stated that she felt it had been gone into thoroughly. Mr. Arnold explained that the City was withholding $200,000 from the CVB's budget for payment of the debt on the Lexington. Although the Bureau has to pledge $173,000 this year for the Lexington, the Ship should be able to pay 5100,000 of that payment, leaving the Bureau $ 127,000. Of that amount left, $30,000 would be used for the marketing plan reallocation. Chairman Jones stated he thought it was the general consensus that the Summary of action steps outlined the general direction the Board of Directors would endorse. On a motion made by him, and seconded by Ms. Harrison, the Board approved acceptance of the Summary. VIII. Discussion on Casino Gaming Chairman Jones stated that casino gaming is becoming an issue in the legislature this year (ATTACHMENT G). No one exactly knows what the outcome will be but if it does get serious, he wanted the Board to be on ,on toprof it. The issue will probably CCACVB Board of Directors Minutes January 21, 1993 Page 6of7 come before the Board at some point in time on a local option basis. When it does, it will have a "high profile". He urged the Board to "think about if you like it or not" and where they would want it to "fit in". He suggested the formation of a task force to investigate it. Mr. Arnold noted that the St. Louis CVB had gone through this issue already and that they had 'piggybacked" with the State to get legislature passed for the allowance of casino gaming in Missouri. It was brought up by Gene Urban that "the more you put in, the smaller the pot gets". He informed the Board members that there was a 50% drop in the Greyhound Race Trick after Lotto started. Mrs. Sheppard remarked on a presentation she had heard recently that portrayed casino gaming as a form of attraction rather than as an added attraction gambling, i.e. the Greyhound Rack Track. It was noted that if casino gaming was pursued, it would certainly involve the efforts of others, i.e. the Port. Erich Wendl remarked that Las Vegas and New Jersey have the biggest turn-outs when they do conventions because of the gambling that is located there. Chairman Jones asked Mr. Wend/if he would be the "information gatherer" on this issue and if he would also select, a few people to work with him on it. Mr. Wendt agreed to do so. IX. Old Business Mrs. Pagan asked if the Bylaws changes had been approved yet. The response was no a/though it was noted that attorney John Bell has been working on the changes over the last 3 weeks. It was noted by the Chairman that the contract for the Miss Texas Pageant (ATTACHMENTS H & Il had not been finalized yet and that he had not received a financial statement from the Clarks. Therefore, no final action would be taken on the contract today. Mrs. Pagan felt that a performance clause needed to be added as the Clarks have increased the number of contestants allowed to participate in the Pageant and she wanted to ensure that it would be a quality show. Mr. Urban also wanted a clause added that would require Crystal Productions show their bills incurred in the City as well as payment of those bills to protect City businesses. Chairman Jones stated that as "time may be of the essence", the Board needed to consider empowering him and Mr. Arnold with the execution of the agreement if the above points were met. A motion was then made by Ms. Harrison to give Chairman Jones and Mr. Arnold the authority to execute the agreement for the Miss Texas Pageant with the addition of the preceding clauses. It was seconded by Messrs. Urban and Seal and approved by the Board. nn , CCACVB Board of Directors Minutes January 21, 1993 Page 7 of 7 X. New Business Chairman Jones suggested late February as a time for the Board of Directors retreat which would incorporate a Friday evening get-together and a Saturday session. As Friday, February 19th would be the date of the joint dinner (CCACVB, HSMA and CBHMCA) at King's Crossing, he suggested combining that evening with a Saturday session at a location to be determined. Additionally, he suggested that the next Board of Directors meeting be held on that Saturday as well.' XL Closed Session Pursuant to the provisions of the Open Meetings Act, the Board elected at 3:28PM to go into a closed session to discuss matters properly brought before them under provisions of said act. XII. Reconvening The Board of Directors reconvened at 4:03PM at which time Mr. Feinberg presented a hand-out (ATTACHMENT J) entitled "Highest Occupancy Metros - 3rd Quarter 1992". He remarked that "we have our work cut out for us" as Corpus Christi was shown as having only 57% occupancy. It was noted that according to the RPOR (Revenue Per Occupancy Report), San Antonio holds the number two position in the U.S. XIII. Adjournment A motion was made, seconded and approved by the Board to adjourn at 4:10PM. Dottie Sylvester Recording Secretary nir L 09404-athee-