Explore Minnesota Tourism Council
Riverwood Inn, Otsego

Members: Fred Bobich, Rob Buntz, Bonnie Carlson, Dutch Cragun, Randy Gutzmann, Nancy Hanson, Doug Killian (for Maureen Bausch), Deb Lloyd, Julie Lunning, Shawn Mason, Greg Ortale, Lisa Paxton, Shawn Radford, Ingrid Schneider,  Dave Siegel, Representative Dean Simpson, Dawn Sullivan, Hank Todd, Tom Whelan, John Valliere

Staff:  John Edman, Peggy Lindquist, Michele Peters, Pat Simmons, Colleen Tollefson, Char Vaughan

Welcome and Introductions:  Chair John Edman thanked the members for attending  the Council meeting.  The meeting will be an all-day meeting.  Members were asked to introduce themselves and share their most recent Minnesota vacation.

Approval of Minutes:  Minutes from the January 26, 2006 Council meeting were previously e-mailed to members.  A motion to pass the minutes as recorded was made by Rob Buntz, seconded by John Valliere.  All members in favor.  Motion passed.

Retreat Report:  Several council members attended the retreat held in April.  Notes from the meeting were e-mailed to all Council members.  Four issues were discussed:
• Marketing
• Partnerships
• Funding
• Awareness

Thank you to Dutch Cragun for his hospitality.

Organizational Partnership Program 2007 Guidelines – Colleen Tollefson:  A task force was formed to address the partnership program guidelines.  The task force was comprised of industry representatives from regional and statewide associations.  Some grant recipients made presentations to the task force on their concerns of existing guidelines.

One of the issues in question was eligibility.  The task force guidelines recommended “Requestors are encouraged to work out which organization is eligible for funding.  If requestors are unable to come to an agreement between themselves, then the grant will be awarded to each organization in alternating years.”  Lisa Paxton addressed this issue to the Council.  Because she represents a multi-community organization (similar to Bluff Country), Lisa recommends that this eligibility language be removed from the guidelines.  At the approval of the Council, the language will be changed.

Another issue of concern is the use of the EMT logo.  The guidelines clearly state that the logo must be used.  If EMT logo is not used, organization will not receive funding.  Previously, an organization was penalized 25% of the grant.

Motion to approve the 2007 Organizational Partnership Grant Guides, with change in eligibility requirements and logo usage requirement/penalty was made by Shawn Mason.  Julie Lunning seconded the motion.  Hank Todd abstained from voting.  Motion passed.

Davidson Peterson Research:  At this time, EMT has not received the overall economic impact information from Davidson Peterson.

Total cost of this research is $140,000 per year.  These costs were shared between EMT, University of Minnesota Tourism Center and the regions.  EMT has heard from two of the regions that are no longer able to contribute to the research costs.

Due to recent legislative mandate, EMT now receives economic impact data from the Department of Revenue.  Representative Simpson believes the legislature places great value on the information provided by the Minnesota Department of Revenue.

Because of the lost funds for the research and the new research EMT is now receiving through Revenue, it was suggested that EMT not purchase Davidson Peterson research this year.

Greg Ortale motioned to not purchase Davidson Peterson this year and revisit the issue again in another year.  John Valliere seconded the motion.  Motion passed.

Ad Agency Update: The review process has been completed and a new ad agency has been selected.  At the request of the Council, no Council members served on the selection committee.  Twelve written proposals were received; seven agencies made oral presentations.  Two agencies met with the selection committee for a second time.  Contract is being finalized and ad agency will be announced when contract is signed.

Committee heard from many of the agencies that the exploreminnesota.com database is rich in content, but difficult to get the information.

The contract will begin July 1; however, ads will not appear until after the first of the year.  Doug Killian and other council members offered to meet with the new agency to introduce them to tourism partners.

Council members expressed interest in discussing reservation options from our website with the new agency.  The ad agency will be invited to the September meeting to discuss.

Communications Update:  The reorganization at EMT has been completed.  Michele Peters began as the Communications Manager in mid-May.  Curt Johnson, James Riemermann, Paul Stafford, and Chuck Lennon have been reassigned to this new unit.

Michele reports that one of her first tasks is overseeing the EMGA/MGA golf site.  The site is scheduled to launch next week.

September Meeting Date:  The Federal Summit is scheduled for September 12.  EMT has recommended that the Council meeting date be changed.  September 19 is the new proposed date.  Agenda items include:  reservations on web site, Revenue commissioner or assistant commissioner introduction, ad agency introduction.

The meeting will be held in the Twin Cities and will run from 10 a.m. to 3 p.m.

Working Group Session – Funding:  At the April retreat, Council members asked how Minnesota compares to other states’ budget, travel spending, etc.  Based on TIA information, this is how Minnesota compares:

Projected FY05-06 total budget:  $9.5 million, rank 29
Domestic Ad Budget:  $3.367 million, rank 29
Projected FY05-06 travel spending:  $9.276, rank 23
Spending per total budget:  $975, rank 15
Spending per ad budget:  $2,754, rank 18
Total rooms:  66,743, rank 24
Occupancy:  60.6%, rank 26

Other sorts are possible, if Council members would find the information valuable.

Representative Simpson encouraged the Council to continue to educate legislators on the importance of tourism.  A legislative task force was created during the last session and received a great deal of interest from legislators.

In the last few years, the budget for Minnesota tourism has slipped from 25th to 29th in overall U.S. state tourism budgets.  The Explore Minnesota Tourism Council proposes increasing the state’s general fund contribution to $16 million (from $8.7 million), and increasing the legislative cap of EMT’s ability to leverage private/public partnerships by raising the cap under which the state matches proceeds to $4 million (currently $1 million).  Under this cap, each dollar whether it be cash or in-kind that EMT raises above $4 million, becomes available as a one-to-one match through the state’s general fund, toa  cap of $8 million in non-state partnership funding.

Funding
The Council broke out into three working groups.

Group #1:
• A right mix of funding sources is needed.
• Need dedicated funding source – which could be lodging tax or some other leisure tax.
• Additional funds are needed for marketing.
• Need to keep the formula simple.  Funding is first.  Resources go to marketing and partners.

Group #2:
• Need funding from both corporate and private entities.
• Need a “dealmaker” at EMT.  Someone who may be able to work off of commission.  Someone who gets corporate sponsorships/new money.
• Percentage of occupancy is important, but narrow.
• Make EMT more desirable to corporate partners.  Should not rely so heavily on legislature for funding.
• Oppose statewide lodging tax, but could look at other taxes – i.e. hospitality or golf tax.
• Tourism should be part of the Arts/Natural Resources special funding discussion.

Group #3:
• $20 million is a good number to start.  Would get to this by providing
o $3 million for staff/ops.
o $2 million for grants
o $4 million in-state
o $7 million out-of-state
o $2 million electronic
o $1 million international
o $1 million fulfillment
• Expand marketing to highlight uniqueness of the regions.
• Measure through sales tax.

Council members agreed
1.  A total of $20 million in general fund is a good base.
2.  Need to identify how new money will be used.
3.  Funding mix needs to be simplified.
4.  Pie-chart representing EMT funding needs to be corrected.

Greg Ortale motioned that EMT should pursue a $12 million guaranteed budget, plus a dollar-to-dollar match of up to $8 million per year.  Lisa Paxton seconded.  All members in favor.  Motion passed.

This funding creates an end goal of $48 million in new tax dollars

Working Group Session – Awareness:  The Council again broke out into three workgroups to discuss tourism awareness.

Group One – Industry:
The first group discussed a tourism awareness plan for the industry, where the goal is to “create, engage, activate and advocate for increased funding for tourism promotion.”

Workgroup 1 created a task force to further discuss and implement.

Group Two – Candidates:
Legislative Task Force was formed as a result of this breakout session.  Task force includes:  Rob Buntz, Lisa Paxton, Dave Siegel, Shawn Mason, Deb Lloyd, Nancy Hanson, Fred Bobich

Information that is needed prior to their July meeting:
• Funding mechanism
• Tourism industry must be able to understand
• Candidate/media plan must fall out of it
• Must inform Governor
• Must be a clear plan with outcomes and ROI
• EMT Council website

Group 3 – Media:
Goal:  “Advocate for increased funding for tourism promotion.”

In order to have a successful media blitz prior to the election, the media group needs to prepare as soon as possible.  Media includes newspapers (meeting with editorial boards), radio and television stations.  It is recommended that the Council hire a media relations expert to follow.  The expert would be responsible to work with the industry, work with the candidates and inform the Governor of the importance of tourism.  The Council would be responsible to fund this position in the amount of $25,000 - $30,000.  This would include the position, as well as the printing of any necessary materials.  Hospitality Minnesota has agreed to be the fiscal agent for this position.  A conference call will be held Thursday, June 29 to further discuss.

Following is a list of tasks and person(s) responsible:

Task      Implement
Umbrella Tasks:  These activities are wound around and through the three targets of our affection.

Finalize funding plan:  EMT (Lead:  John Edman)
Define specs for consultant:  Council (Lead:  Tom Whelan)
Recruit/hire consultant: Council (Lead:  Tom Whelan)
Raise funds as needed:  Council
Conference calls:  EMT/Council
Develop EMT’s own website:  EMT (Lead:  Michele Peters)
Includes aggregating information and communicating its availability to industry
Develop key messages from funding:  EMT/Council (Lead:  Peters and Whelan)
Develop speaking points:  Council
Develop visuals:  Council
Identify spokespersons:  Council

Target – Industry:
Goal:  Create, engage, activate and advocate for increased funding for tourism promotion.

Develop contact lists:  EMT/Council (Lead: Tollefson and Whelan)
Tourism Associations (EMT Members)
Attractions
Accommodations
CVBs
Regional groups
Local Officials City/County
Customized key messages developed:  EMT/Council (Lead:  Peters and Whelan)
Make contacts, ask for commitment:  Council (as assigned)/Consultant
E-mail blasts
Phone conversations
Letters to members
Reports back to EMT/Council:  Council/Individual Assignee & Consultant
Develop background materials and EMT/Council place on website

Target – Candidates:
Goal:  Advocate for increased tourism support and increased funding for tourism.

Identify legislative candidates by district EMT:  (Lead:  Tollefson - DEED)
Develop position paper and resolution:  Council
Build list of contact assignments:  EMT/Council (Lead: Tollefson and Whelan)
Make assignments/supply info
Contacts made by industry - personal:  Council/Industry as assigned - visits, phone calls, e-mails, letters
Host Tourism Industry Debate:  Council
Film and distribute
Gather dates of debates:  Council
League of Women Voters:  Council
Draft questions/assign:  Council
Feedback to consultant:  Council/Industry as assigned
Results charted at EMT and on website
Engage candidates at forums and debates
Reports to EMT/Council:  EMT/Council
Follow-up calls as necessary:  ALL

Congratulatory letters to winners reinforcing tourism message and need for increased funding:  Council/joint letter

Plan and execute Legislative forum at Tourism Conference:  EMT/Council (Lead: Tollefson & Buntz)

Next round of meetings with legislators:
201 individual meetings in St. Paul or in home district to stress importance of
additional funding:  Council (Lead:  Buntz & Paxton) Consultant

NOTE:  Is it reasonable to expect every candidate is contacted by a minimum of five different industry reps?

Target – Media:
Goal:  Advocate for increased awareness and support of tourism and for increased funding for tourism promotion.

Media lists and contacts developed:  EMT/Council (Lead: Peters and Whelan)
Schedule meetings with editorial boards:  Council
Assignments made and posted on web:  EMT/Council (Lead: Peters and Whelan)
Material preparation:
Press kit
Op-Ed pieces
Letter to the Editor
Talking points for radio interviews
Contacts made and reports given:  Council/Industry Assignees
Follow up on attendance/Media Calls: Council
Schedule Press Conferences:  Council
Communication to EMT Council:  Council/Consultant

Other Key Events:
Establish timeline for plans
Reports to EMT
TIA Summit Washington DC
Elections
Resort & Campground Conference
Tourism Conference

Working Group Session – Federal Summit:  The Federal Trade Summit is scheduled for September 12-13 in Washington DC.  Council members were asked to identify Minnesota’s top five issues.  As voted on by Council members, the top issues are:
• Western Hemisphere Travel Initiative (Border Crossings)
• Visa Delays
• Improve Temporary Worker Visa Processing
• Immigration Reform
• International Destination Marketing

Minnesota delegates should also plan to discuss issues that are relevant to Minnesota tourism – i.e. resorts, economic impact of tourism to Minnesota.

Minnesota delegation includes:  Bonnie Carlson, Fred Bobich (tentative), John Edman, Dave Siegel, Rob Buntz, Representative Simpson, possibly representatives from MLT/NWA and Carlson Companies.

The Council recommends because of the limited number of Minnesota participants, a dinner or reception will not be held.  The delegation will participate in scheduled appointments.