Present: Maureen Bausch, Fred Bobich, Rob Buntz, Bonnie Carlson, Gabe Castaneda, Randy Gutzmann, Nancy Hanson, Wally Heise, Nancy Krasean (for Dutch Cragun), Deb Lloyd, Julie Lunning, Greg Ortale, Lisa Paxton, Senator Carrie Ruud, Ingrid Schneider, Dave Siegel, Hank Todd, Tom Whelan, John Valliere

Guests:  Jac Coverdale, Brad Kustermann, Biz Polloway, Rob Rankin

EMT Staff:  John Edman, Bob Erler, Peggy Lindquist, Cheryl Offerman, Michele Peters, Pat Simmons, Colleen Tollefson, Char Vaughan

Welcome and Introductions:  Chair John Edman thanked the members for their attendance and continued support of Explore Minnesota Tourism and the tourism industry.  Members were asked to introduce themselves and list their top three issues for 2007.

Issues mentioned for Council members include:
• staffing
• funding
• resort preservation
• (new) technology
• retention (of students, customers)
• website
• environmental issues
• air transportation
• drive occupancy
• fuel costs
• marketing
• changed political landscape
• capitalize on international marketing
• finding tourism spokespeople
• global notion of tourism
• weather resistant marketing
• work force issues – immigration, visas
• online bookings
• replace lost government business
• awareness

Tourism Council Appointments – John Edman:  Some of the Council members’ terms will expire in January 2007.  Members who are interested in seeking reappointment must send a letter to John Hultquist in the Governor’s Office.  Need to contact new Senate and House leadership to determine who their new appointments will be.

Approval of Minutes:  Minutes from the September 19, 2006 Council meeting were previously e-mailed to members.  A motion to pass the minutes as recorded was made by Rob Buntz, seconded by Tom Whelan.  All members in favor.  Motion passed.

2007 Strategic Plan – John Edman:  Prior to the 2006 Strategic Plan, EMT staff and Council Members traveled around the state to seek input from the industry stakeholders.  The 2007 Strategic Plan reflects the changes that were recommended by the Council as a result of the retreat held in April.  The top changes to the 2007 Plan are:

1. Tourism Council initiative for a $20 million annual budget.
2. Industry events and other promotions
3. 2007 Research Plan including new web research and Revenue data
4. Integrated sales of Travel Guide and other opportunities
5. Integrated communications – newsletters, fast facts and publications
6. Increased promotion of packages, group and international
7. Expansion of extranet listings and categories
8. The new statewide Travel Guide including comprehensive accommodation information
9. The total redesign of exploreminnesota.com
10. New enhancement packages
11. The agency and consumer driven marketing plan

Comments from the Council include:
• Is EMT promoting entities that pay taxes?
EMT has a check box for database listings that taxes are being collected by the industry respondent.
• Are the goals quantifiable?
Yes.  Most of the strategies listed have goals and measurements and are tracked by EMT.  More quantifiable goals such as inquiries from advertising are more detailed and separate reports.

Legislative Initiatives – Rob Buntz: Thank you to all the Council members who met with the candidates prior to the election.  Be sure that all members have provided Deb Lloyd with notes from these meetings.  Council members are encouraged to write a note to Governor Pawlenty thanking him for his support of tourism and asking him to continue this support.

Need to emphasize that tourism supplies many jobs to the economy.  Tourism generates tax revenue which in turn gives money back.  Tourism can be a career path with earning potential.  Hospitality Minnesota is now training in 25 Minnesota high schools in restaurant management.  Tourism provides a second income to many families and employs people who may otherwise rely on public assistance.

Strategy presented by the Public Policy Task Force is:
1. Congratulate elected officials and let them know that EMT Council can be a resource to them.
2. Local information is available.
3. The role of tourism to the economy.
4. What is important to tourism
5. Encourage legislators to participate in tourism caucuses
6. Keep Deb Lloyd up-to-date on meetings with elected officials
7. Write a thank you note to the Governor

Legislative Initiatives:
Four proposals were forwarded to the Governor:

1.  Public Private Partnership.
Recommendation:  Requests a public private partnership investment in tourism to create a $20 million annual budget.  The general fund investment would consist of a $12 million base and an incentive fund investment of $8 million which must be matched with private sector dollars on a one-to-one match.

2.  The Minnesota Film and TV Board:
Recommendation:  Requests an increase of $100,000 annually for the administration of the Minnesota Film and TV Board to provide increased marketing and technology to targeted production location decision-makers.

3.  Tax Exemption for Minnesota Resorts:
Recommendation:  Requests a tax exemption for construction materials and supplies used in the expansion or capital improvements of a homestead resort classified as 1c, or for resorts classified as 4c, under section 273.13, subdivision 22 or 25, including any portion of a 1c or 4c resort classified as class 3 under section 273.13, subdivision 24.  This exemption would be up to a maximum refund of $10,000 in each calendar year for each resort.

4.  Snowbate Program:
Recommendation:  Requests increasing the Minnesota Film and TV Board (MFTVB) funding for the Snowbate program to $10 million for the biennium.  This would be an increase from the one time appropriation of $1.7 million for FY07.

Explore Minnesota Tourism is the fiscal agent for the Minnesota Film Board and facilitates their requests through the review process.

The cereal box has been a great resource when meeting with legislators and others.  The design is being updated and a companion piece will also be produced.  A print run of 5,000 cereal boxes has been approved.

A delegation from Minnesota traveled to Washington DC on September 12 and 13 to participate in the Travel Leadership Summit.  While in Washington DC, the delegation met with Minnesota’s congressional delegation and Minnesota’s two U.S. Senators to address the following issues: Western Hemisphere Travel Initiative (WHTI), U.S. Visa Policy, Temporary Worker Visa Processing/Guest Worker Program, Comprehensive Immigration Reform and International Destination Marketing.

Some type of “Legislator Familiarization Tour” should be scheduled.  The Council should invite the legislators to the 2007 Tourism Conference and invite them to tour EMT’s office.  The Capital Committee is already scheduled to tour Minneapolis, Saint Paul and Bloomington.

Explore Minnesota Tourism submitted two proposals for funding from LCCMR.  The first was for Resort/Lodge Shoreland Restoration.  The other was for Resort/Private Campground Septic Replacement and Upgrade.  Neither request was selected for review.

Marketing Update – Clarity Coverdale Fury:  EMT is in the process of a total rebuild of its’ website in order to support the new direction of our advertising.  “My Favorite Minnesota” will feature webisodes from real people on “inside information” on best destinations/activities/attractions.  This is a direct attempt to drive consumers to the exploreminnesota.com website.  The first round of webisodes will feature 150 Minnesota destinations.  Will preview all webisodes at the Tourism Conference.  Will also schedule an unveiling of this promotion to stakeholders, an introduction to media, and highlight lists and issue press releases.  May also host an “Opening Night” Film Festival in March to unveil the webisodes.  Invited guests would include media, authors of the webisodes, Council members, legislators, etc.

Will run television ads in key markets, consider print publications, broaden online keyword searches and pursue direct mail efforts.

Clarity Coverdale Fury presented some samples of the webisodes.  When launched, there will be over a dozen different webisodes on the new site that represent all aspects of the tourism industry and all regions in the state.

Comments from the Council:
• Need to have more diversity in photos/video
• Consideration should be given to reexamine regions. To the consumer – Southern, NorthCentralWest and Northeastern Minnesota have no identity.
• Typeface and colors used on home page could be updated.
• Like the webisodes.  Very modern technology.
• Great opportunity for consumers to add their own lists.
• Mapping application would be beneficial.  Scenic Byways and golf already have.  Hope to add to the remainder of the site by May.
• Make sure that all regions are represented.  Ad agency has been tracking by adding pins to a map when visiting a specific destination.
• Don’t forget about people with disabilities.

Reservation System – John Edman:  Previously, our statutes stated that Explore Minnesota Tourism could not be involved in a reservation system.  This language has been removed from the statutes.  Looking to see what other states are doing on this issue.  Minnesota’s primary objective is to provide the customer a service.

Comments from the Council:
• Meet Minneapolis uses Travelocity.  Has also used Expedia.  Trend is that the consumer will go to the Meet Minneapolis site for information and then return to their preferred site for booking.
• Recommend that EMT does go to a reservation system – a combination of all systems, not one specific one.
• Hospitality Minnesota uses WorldRes.  This allows them to maintain multiple sets of numbers and inventory.  Notes that larger properties want them to point to their reservation page.
• Consumer is looking for one stop shop.  Want rental car, hotel, transportation.
• Need to determine how to deal with DMOs.  Are we looking to partner with them?
• Need to focus on objective, don’t plan to make money, and look at all the players – not just Expedia and Travelocity.
• Pegasus is another resource for online reservation system.
• May be difficult to get small businesses to buy into this concept.
• Need to look at putting heads in beds, not at making money.

The Council agreed that Explore Minnesota Tourism should explore options for creating a reservation system on exploreminnesota.com that meets the needs of the consumer and the industry.

Economic Impact and Profiles – Pat Simmons:  Copies of “The Profile of Travelers in Minnesota Summer 2005 through Spring 2006” and “The Economic Impact of Expenditures by Travelers on Minnesota” were distributed to Council members.  These reports were prepared by Davidson-Peterson Associates.  Traveler impact by region reports are also available.  Thank you to the University of Minnesota Tourism Center and the regional associations for assisting in the funding of these studies.  These reports will not be done again this year.

The studies that were conducted for these reports were based on Minnesota surveys, not national travel surveys.  A press release will be issued in the near future announcing the release of this information.

From June 2005 through May 2006, traveler expenditures in Minnesota supported 286,600 full-time equivalent jobs in total.  About two-thirds of these jobs were directly supported by total estimated travel expenditures in Minnesota (184,400).

Traveler expenditures in Minnesota led to the receipt of $1.496 million in state government revenues and $498 million in local government revenues in total from June 2005 through May 2006.

During the period June 2005 through May 2006, the state government collected $896 million and local governments collected $280 million that were directly attributable to traveler expenditures.

Tourism Conference:  The 2007 Tourism Conference will be held January 23-25 at Cragun’s Resort in Brainerd.  The theme is “The Great Explore Minnesota Get-Together:  Good Vibrations.”

The RFP will soon go out for the 2008 Conference.  Thirty percent of the proposal is based on cost.  Not allowed to go back to the same location for three years.  In the past, the Conference has been rotated between outstate Minnesota and then metro.  For 2008, will request that the location is no further than 250 miles from the Twin Cities, but it will be open to both metro and outstate locations.

Proposed 2007 Meeting Dates:
Thursday, March 8
Tuesday, June 12
Wednesday, September 12
Tuesday, December 4