2009-08-31_Supplemental Agenda Packet--Dossier de l'ordre du jour supplémentaireCity of Saint John
Common Council Meeting
Monday, August 31, 2009
Location: Common Council Chamber
Supplemental to Agenda
8.1(b) Saint John Specific Destination Marketing Organization Recommendation
City of Saint John
Seance du Conseil communal
Le Lundi 31 Aout, 2009
Lieu : Salle du Conseil communal
Ordre du jour supplementaire
8.1(b) Organisme Destination Marketing de Saint John
I I I 1� I, 1 11111 �!11111 i=�3
Submitted to
City of Saint John
In
Gail Bremner
Auigust 13, 2009
r.
0 1
Table of Contents
1. Executive Summary ............................. .:........... .............................................................. 3
2. , Background ...................................................................................... ..............................8
3. Current Situation ............................................................................. ............................... 9
4. Need for Change ............................................................................... .............................11
S. Research & Analysis ........... ............................................................... .............................13
6. Recommended Model for a Saint John Specific DMO ......................... .............................16
6.1 Governance ............................................................................................... .............................16
6.2 Membership Fee Based .............................................................................. .............................18
6.3 Staff Composition ...................................................................................... .............................2Q
7. Purpose of the Saint John DMO ......................................................... .............................21
7.1 Key Tourism Objectives .............................................................................. .............................21
7.2 Short Term Goals for the DMO (Two years) ................................................ .............................22
7.3 Medium Term Goals for the DMO (Five Years) ............................................ .............................23
7.4 Create and Execute a Marketing Plan ......................................................... .............................23
7.5 Business Development Plan ...................................................................... .............................24
8. Financing the Destination Marketing Organization ........................... .............................25
9. Accountability .................................................................................. .............................27
9.1 Performance Indicators .............................................................................. .............................27
9.2 Reporting .................................................................................................. .............................28
10. Proposed Path Forward (Transition Plan) ...................................... .............................29
11. Concerns & Anticipated Challenges (FAQ's) ................................... .............................31
12. Cautions ........................................................................................ .............................35
13. Recommendations ......................................................................... .............................36
Saint John Specific DMO Recommendation Page 2
1. Executive Summary
As the fourth largest employer |m Saint John, tourism |so priority sector for the future growth of the City
of Saint John and will assist in growing the tax base to ensure citizens continue to have essential services
as well securing the identified priorities of the City. This will be done by creating jobs, which ultimately
leads to residential purchases, by increasing business through new developments and larger profits,
bath which lead to increased residential and business tax revenues for the Province of New Brunswick
and the City of Saint John. For example, one new hotel property in Saint John has generated
approximately $1S(\UUUim new taxes for the City.
Saint John currently has over 54 accommodation providers, 78 restaurateurs, 35 attractions, 471
retailers and 4O other companies directly engaged in the tourism industry. Tourism is now outpacing
fishing, mining and agriculture combined for employment in New Brunswick and one in seven is
employed in tourism nationally. The global demand for capturing tourism dollars has been growing
rapidly and the need for Saint John to have one entity, one voice leading industry and stakeholders to
new heights in tourism is clear.
In February 2009 Council approved the recommendation to engage Gail Bremner to review and
recommend a Saint John specific model for o Destination Marketing Organization (UK4(}). Bremner's
mandate was to engage industry and key stakeholders, to review and update the recommendations of
previous reports, and to investigate best practices across the country.
The process that Bremner engaged in and the outcomes are detailed within the report but
overwhelmingly, industry, stakeholders and best practices indicate that the transition to a public-private
not for profit corporation, membership driven, reporting to e tourism stakeholder board of directors
comprised of stakeholder representatives isthe desire and best option for tourism in Saint John, This
recommendation is the same as the recommendations contained in a number ufreports commissioned
since 1997 that have reviewed the structure and function of tourism for Saint John,
In May 2007, a voluntary Destination Marketing Fee (DK4F) of 2% was implemented by the Saint John
Hotel Association vvhidl has created e significant new revenue stream from the private sector for
tourism marketing. Recognizing the importance of tourism the City of Saint John agreed 10 maintain
current funding levels for Tourism Saint John /S1.0M\ through to 2018, when the DMF was
implemented. The creation of this new revenue stream for tourism has contributed to the readiness for
a public private organization.
Saint John Specific UM0Recommendation Page
The need for change |surgent. There ise need and appetite for change due tua variety of issues such as
multiple organizations working within the tourism realm, vvbicb has lead to duplication of efforts and
lack of clarity ofroles and responsibilities, making it challenging for both internal and external clients
and partners. Additionally the competitive situation |s heating upwith both Fredericton and Moncton
coming online with new state of the art convention facilities. Product development and stewardship
from a tourism perspective has fallen through the cracks.
Highlights of the Research & Analysis-
m The tourism industry is looking for leadership, direction, and one voice to lead tourism in Saint
John into the future
• Stakeholders want one organization to collaborate with to grow tourism in Saint John thus
eliminating duplication ofefforts
• Public Private Organizations are the norm in Canada when marketing a destination
• Each destination has unique situations/opportunities that require destination specific
modifications tn the standard DK4Omodel
• Transition from a municipal based organization to a public private not for profit incorporated
organization is the desire of stakeholders* and industry**
*Stakeholders are identified as: Saint John Port Authority, Saint John Airport Authority, New Brunswick
Tourism& Parks, Wellness Culture &Sport, Tourism industry Association of New Brunswick, Atlantic
Canada Opportunities Agency, Enterprise Saint John, Saint John Board of Trade, Saint John Waterfront
Development, Hospitality Saint John, Uptown Saint John, University of New Brunswick Saint John, New
Brunswick (l7mqrnun/ty College Saint John, Leisure Services, City of Saint John, Grand Boy Westfield,
St. Martins, Hampton
"Industry are identified as: accommodation providers (hotels, motels, B&8�Inns,
restaurants, burs, attractions, outdoor adventure, retail, transportation, tour operators, festivals 0
events, facilities, arts & entertainment, community
Saint John Specific DMO Recommendation Page 4
Highlights of the Recommendations:
" Board ofDirectors:
�
The City of Saint John commit to a five year fee for service agreement with the new organization
reflective of the 2009 expenditures for tourism ($929,706 plus Visitor Information Centre
operation and maintenance costs, approximately S5O,U00) with an annual minimal 2.590
w
The Saint John Hotel Association commit toa five year fee for service agreement with the new
organization authorizing the DMO to administer the 2% Destination Marketing Fee minus
administration costs (approximately $400,000 annually)
K initially, the staff of the DMO to consist of 7 full time employees with performance indicators
based onademonstrated return oninvestment
a Timely reporting and communication between the DMO, stakeholders and industry ensuring
accountability for both public and private funds
E Membership fee based
E Transition would start upon the approval of the recommendations with January 1, 2010 marking
the official start-up date
Saint John Specific DMORecommendation Page
New Organizational Structure for Tourism
Marketing & Sales
Leisure - ?our,
Cruise & FIT
Meetings &
Conventions
Sports & Events
Festivals
Saint John DMG
One Voice, One Entity
omb
hoard -of Directors
Exec Director
Staff
Membership
Research &Advocacy
Networking&
Trainine
Tourism
Awareness week
Product Development
■ Organizations currently working in the tourism realm would engage the DMO as per this
organizational chart
N This would reduce the number of entities that the City of Saint John engages for tourism from
approximately 30 to 1
® Staff would lead industry and stakeholders in committees to ensure relevance of DMO function
Saint John Specific DMO Recommendation Page 6
Recommendations for approval by Council:
1. Support the establishment of a non-profit corporation (Destination Marketing Organization)
to provide destination marketing function for Saint John
2. Eliminate the City's tourism department and have all functions handled by the DMO subject to
a five year service agreement
3. Fund the new corporation in an amount equal to the funds being expended on tourism
function including owning, leasing and maintaining the Visitor Information Centres with a
2.5% annual increase
Note: Approval of these recommendations does not commit the City to any new funds other than the
2.5% increase per year
Saint John Specific DMO Recommendation Page 7
In February 2009, Cowmd| approved the recommendation to engage Gail Bremner to review and
recommend a Saint John specific model for a Destination Marketing Organization (Q&4O). Previously, a
number of reports commissioned by private and public sector had recommended the creation ofa
Private-Public Not-for-Profit Corporation that would be membership driven and report to a board of
directors comprised of a number of tourism stakeholder representatives. Bremner's mandate was to
revievvandupdatethemacomnnendationsofthesereports,tmenQage|ndustry*andstakeho|ders**,uod
to investigate best practices across the country.
A DMO is a company or other entity involved in the business of increasing tourism to a destination. The
evolution ofDK4Os has grown tV include managing and marketing destination's resources unique
selling propositions, industry partners, and stakeholders. This has come about osthe DMC) has strived
tn become the authority |na destination asit relates totourism.
' d�[
*Industry are identified as: occnn7n7ndo�on providers (hotels, rnobcb, &@8� Inns, Campgrounds),
restaurants, bons, attractions, outdoor adventure, ncto/1 transportation, tour operators, 6ostk/ub &
events, facilities, arts & entertainment, community
"Stakeholders are identified as: Saint John Port Authority, Saint John Airport Authority, New Brunswick
Tourism & Parks, Wellness Culture & Sport, Tourism Industry Association of New Brunswick, Atlantic
Canada Opportunities Agency, Enterprise Saint John, Saint John Board of Trade, Saint John NNzbprtnont
Development, Hospitality Saint John, Uptown Saint John, University of New Brunswick Saint John, New
Brunswick Community College Saint John, Leisure Services, City of Saint John, Grand Boy Westfield,
RothesaK Quispamsis, St. Martins, Hampton
Catalysts that led to considering a DMO for Saint John
a Duplication of efforts byanumber of entities mmrkimgiothe tourism realm
2 Lack of understanding bwindustry of the roles nf various entities
" introduction of a 296 Voluntary Destination Marketing Fee (DM[) by the Saint John Hotel
Association
0 increased competition from other regions
a Fewer major events in the City
Saint John Specific DMO Recommendation Page 8
Interim Committee
An |n1ehrn Committee was appointed to provide guidance to Bremner. The committee was comprised
of representatives. Council approved 3, the Saint John Hotel Association appointed Z and 1 staff
person from the City was assigned to the file. They have all been instrumental in the process and are in
full support of the recommendations contained within the report. They are:
a Brian Clark, Fundy Trail Parkway
E Jane Fullerton, New Brunswick Museum
U Tammy LeBlanc, Hilton Saint John
a Glenda MacLean, Hampton Inn & Suites Saint John
a Helena Millar, Travelcounsellorsca & Seely Street B&B
E Pat Woods, City of Saint John
3. Current Situation
Tourism Saint John currently follows a municipal model, with a complement of six full time positions.
Four positions are vacant including the Manager's position. Positions were purposefully not filled aob
was known that a possible change in structure was being considered. Tourism Saint John also operates
five Visitor Information Centres (V|Cd with one casual and 16 seasonal employees.
The 2009 tourism budget has the City contributing $929,706 to Tourism Saint John. Tourism Saint John
and Venue Saint John, a partnership of industry partners and the City that focuses on the meetings and
convention market, has secured and additional $75,OOD|n private industry funds for ZUO9. These figures
do not include any DMFfunds.
Total tourism expenditures are estimated at over $24bKH for 2OD8. 2OOO saw Saint John rank 5 out of2S
tourist regions east of Montreal, with Quebec City, Fredericton, Halifax and Moncton ahead. While this
is a great showing, there is still opportunity for growth (See Appendix 1, Tourism Industry Performance
City of Saint John Z082'3OO8).
Saint John Specific DMO Recommendation Page 9
Performance by Tourism Markets
Meetings &Gonmmtions: City wide conventions (conventions that require 300 accommodations per
night or more) are the main focus for Tourism Saint John under the partnership of Venue Saint John.
Saint John has traditionally performed very well in this segment with 2007 being the most recent banner
year. This segment is cyclical as the trend is to hold conventions rotating through central, eastern and
western Canada. For Saint John this has meant that over the past couple of decades, every odd
numbered year has been strong. Unfortunately, 2O09 and 20I1 are not forecasting tubeas strong for a
variety of reasons, including new convention centres in Fredericton and Moncton.
Leisure: As anticipated the global economy, passport issues and other factors contributed to a weaker
performance in this market in I008; however, commercial travelers ensured that Saint John performed
well overall. Current Provincial and City analysis does not differentiate between leisure and commercial
travelers and thus accommodation providers were asked to provide data locally.
Cruise: The 2008 cruise season experienced an increase of 38% over the previous year, setting a new
record of 183,SQO passengers visiting the Port City on 69 vessel calls. This represents over a 100%
increase from cruise numbers just two years ago (2006), when 87,800 passengers visited. The Saint John
Port Authority has played the leading nu|e in gnuvvUog this segment over the post 3 years with Tourism
Saint John playing e minor role.
Sport Tourism & Major £vants: Statistical analysis of these markets is challenging; however, traditionally
these two market segments have been community led in Saint John with Tourism Saint John assisting as
needed.
Attraction Visitation: Visitors to the New Brunswick Museum increased 30.5 percent to 67,313 over last
year's 51,504. This gain is attributed to cruise business as well as the provincial market. Additionally,
Carleton Martei|n Tower experienced a 14 percent increase over the previous year. Their increase is
attributed tuan increase in cruise passengers.
Tourism Infrastructure
Saint John is very fortunate to have natural wonders to promote, including the Ray of Fundy with its
highest tides in the world and our amazing river` ^ ms, as well os some top attractions, such as the
New Brunswick Museum. our infrastructure has seen gains in the past few years with the addition and
growth of such attractions as the Fundy Trail Parkway and Rockwood Park. However, some of our key
assets and attractions no longer meet expectations. For example, the Reversing Falls ismo longer listed
as a top attraction for the Province of New Brunswick due 10 its current state. Similarly, the Saint John
Trade D'Convention Centre struggles to maintain a competitive position against established and new
facilities in our region.
Saint John Specific DMO Recommendation Page 10
Other Tourism Entities
In addition to Tourism Saint John, there are e number ofentities involved in tourism vvbhhn the region
and all play a role in attracting and/or servicing visitors (See Appendix 2, Tourism Organizations in Saint
John). While all ofthe entities provide services there are many challenges to the current approach.
These include duplication of efforts (financial & human resources) and no common vision.
The Competitive Environment
Competitive environment within New Brunswick for Saint John's key market, meetings and conventions,
is going to change dramatically as Fredericton and Moncton are both investing in their infrastructure
and will be opening full service convention centres within the next couple of years. Fredericton hired a
full time position two years ego to start selling their convention centre and Moncton enhanced their
sales efforts for larger events as well. The sales cycle for City Wide events starts early and sees contracts
signed three to five years in advance, Because Fredericton has started construction we are already
experiencing losses to Fredericton. Notably, there are examples of clients who had verbally confirmed
Saint John as their meeting location but who are now considering Fredericton, instead.
4,Need for Change
There are avariety of challenges with the current situation that underlie the need for change for tourism
[n Saint John.
Multiple Tourism Organizations
There are a number ofentities involved in tourism within the region and all play a role in attracting
and/or servicing visitors (See Appendix 2, Tourism Organizations in Saint John). While all of the entities
provide services, the challenges the current approach has produced are:
_
• Duplication uf efforts Uimencia 8/
(financial .
• Lack of clarity for industry (for example, which is responsible for advocacy?)
• Fragmented for visitors (for example, who |s the recognized exper1Y)
• Lack nf clarity for Key Stakeholders /for example, who does New Brunswick Tourism 8' Parks
engage for input and feedbank71
• Lack of clarity for entrepreneurs (for example, whose mandate is to assist entrepreneurs
entering or contemplating the market?)
Saint John Specific DMO Recommendation
Page 11
� Lack of meaningful performance measures (for example, the number of overnight visitors
�
Fragmented brand messaging (for example, Is the tourism brand the Explorer or the Fundy
0 No common vision
Product
While a number oforganizations work towards creating new product, including festivals, infrastructure,
and experiences, there isn't one entity responsible for championing the interests of tourism. For
example the current situation dues not ensure that a new festival is net scheduled during peak
convention season. Additionally, there is not one entity to identify the top tourism priorities as it relates
to infrastructure funding from the [bv, Province or Federal government as is evident from earlier
examples of the Reversing Falls and the Saint John Trade & Convention Centre.
Tourism Saint John Staffing Levels
While done purposefully, the current underataffing of Tourism Saint John contributes to the need for
change. The leadership role at Tourism Saint John has been vacant for over two years and while it was
not filled due to anticipated change, it has created a void. Experts suggest that even the best run
organizations can survive without a leader in the short term, but eventually will experience a downward
turn without leadership and renewed strategies. Immediate action needs to be taken.
The Competitive Situation
in today's environment, change is and constant Social media such as Twitter and Facebook
have stronger influence on cunsmrneo/ buying decisions than traditional marketing tactics. The world
has become smaller, and thus competition for visitors among tourism destinations is significantly
greater. Trends are shifting remarkably quickly, to the extent that highly strategic organizations no
longer rely on three to five year marketing plans, but instead revisit strategic plans frequently
throughout the year. For example, who would have thought that New Brunswick would not be focusing
its marketing efforts on the New England traveller? In order to ensure growth and a competitive
advantage, tourism needs a solid diversified strategy that will address all of the traditional markets and
emerging key markets while being able to adapt quickly to change or new opportunities. Considering
the strides that Fredericton and Moncton are making, new strategies are needed for Saint John.
Saint John Specific DMO Recommendation Page 12
Growing Indust
Tourism is currently the fourth largest employer im the city. In recent years, the industry has expanded
with the construction of new hotels, new restaurants, unprecedented retail growth and new
infrastructure such as the Marco Polo Cruise Terminal. As was evident from the consultation, the
tourism industry is looking for leadership, direction, and one voice to lead tourism in Saint John into the
future. There is an appetite for change and a need for action to ensure continued growth and prosperity
for tourism providers.
5~ Researc&»& Analysis
Over the past several months extensive research into D*AO models and industry needs was conducted.
Firstly, seven destinations with well established DMOs were identified and fully investigated with
regards to their function and governance. They were chosen because they are all successful, varied in
their approach and funding models, and provide a broad spectrum from which tm obtain best practices
(See Appendix 3,DW1O'yatoG|ance).
0 4 small board with specific identified skill sets provides the best direction for aDM(J
m Roles of the board and the administration need to be clearly defined to avoid confusion of
responsibilities
a The Executive Director, not the board, manages the day to day operations of the DMO
• Bylaws must be clear and distinct
• Key markets gn which to focus efforts must beidentified. Trying tobe everything tueveryone,
while tempting, impedes the success nf the DM(}
• Member needs must be known and addressed to ensure continued support
• Communication is key toa successful DM{}, both internally and externally
• Clients have higher expectations of DMO today. They demand not only top notch sales
techniques before considering e destination for their rneetimgo/events; they also demand a
higher level of service from the DMO once they have signed contracts with industry.
• Every DMO structure is going to be different as it addresses the local needs and situations
Saint John Specific DMORecommendation Page 13
industry and stakeholders were engaged in a review of the current situation through interviews,
consultative group sessions and one-on-one correspondence (approximately 65 meetings, interviews,
and sessions with over 2G0participants). This approach led to the development nfa Saint John specific
model for a DN1O that addresses the needs of industry and stakeholders alike (Gem Appendix 4,
Inventory ofMeet|ngs).
Key Finding from Industry & Stakeholders:
Essentially, industry and stakeholders were asked two questions: what does the DMO look like? U.g.
governance) and whet do you want the DMO to du (i.e. function)? The key stakeholder interests and
desired outcomes were: (See Appendix 5, Raw Data from Industry Sessions)
Governance of the DMO:
• Board should have a higher level focus and not be engaged in the day to day operations of the
DMO
• Broad based, ensuring that no one tourism sector (accommodations, restaurants, retail,
attractions, etc.) was controlling the board, while all sectors feel represented
• ShQ| set based, ensuring that the board has the skills needed (marketing, legal, visionary,
entrepreneurial, etc.) to provide higher level thinking, recognizing that the skills needed may
evolve over time
�
Small and manageable board tu enable timely and effective results
Function of the DMO:
• One Voice for the tourism industry
• One Brand for the tourism industry
• Sales Q Marketing— provide the leadership role in the hey markets that are determined to be
the focus for Saint John
• Advocacy— provide the industry with advocacy efforts loca|hy, provincially and nationally on
issues important to the tourism sector and industry
• Education - Facilitate educational opportunities for industry for the betterment uftourism
• Netvvurking - prov[danetvvork(ng opportunities for industry to learn from each other and grow
• Product Development - facilitate product development efforts for the region by working with
partners
Saint John Specific DMO Recommendation Page 14
The structure and function of tourism for Saint John has previously been identified as an area that
should be transformed to produce a higher return. Over the past decade a number of reports have been
commissioned that have dealt with this subject matter. Thus also included in the analysis for this
project was a review of previous studies that focused on improving tourism efforts in Saint John.
N Ketchum Report 1997
N Halliday Report 1999
0 SJ NeQ[un Sustainable Tourism Development Strategy (Dr. Laurel Reid, 2003)
N Event Management Study 2007 (Community Leaders)
Notably, the outcome of the research and consultative approach outlined above was unified and clear.
A transition to a Private-Public Not-for-Profit Corporation (Destination Marketing Organization),
membership driven, reporting twp tourism stakeholder board ofdirectors comprised of a number of
stakeholder
Saint John Specific DD8ORecommendation Page 15
6. Recommended Model for a Saint John Specific DMO
Based on the research and analysis, the following outlines a recommended model for a Saint John
specific Destination Marketing Organization.
6.1 Governance
Board of Directors
Taking into consideration the best practices, the input from industry and stakeholders, and issues
specific to Saint John, the proposed board structure is as follows:
Table 6.1
Points to Note:
■ 11 member voting board with 3 non voting
a 7 appointed, 4 elected
■ Members of the board would be subject to Board Criteria (See Appendix 7, Board Criteria)
Saint John Specific DMO Recommendation Page 16
" It is recommended that the first board be entirely appointed. The 7 appointed representatives
should appoint the remaining 4 who would otherwise be elected from membership.
Prospective members could fill these appointments based on the specific identified skill sets
required for the board
IN Staggered terms are recommended with approximately one third of the board replaced each
year
a Policy Driven Board not involved in the day to day operations of the DMO
m Suggested Standing Committees
o Strategic Planning
� Ad hoc & Working Committees are also recommended, such as Membership Relations,
Marketing, Festivals &Events, Product Development, and Research which would all be drawn
from membership
Governance Policy
During the best practices review, a number of sample bylaws were obtained as reference materials for
the DMO (5op Appendices G'B Sample By-Laws, Board Criteria, Code of Ethics and Conflict of interest).
Upon reviewing them, the following have been identified as Saint John specific aspects of the bylaws
that will beimportant:
� CodeufEtMics — enooriog a mechanism is|n place for members, partners, and/or stakeholders to
�
Conflict of Interest — ensuring a waiver and clearly defined rules are in place for board members
to disclose potential conflicts of interest and remove themselves from related proceedings of
the board
�
Decision W1aking— identifying and clarifying the decision making process through solid bylaws,
Exeonpbs include when proxy votes may or may not be used, whether decisions must be
unanimous versus 75% versus 51%, and whether there will be key areas that will require a
higher percent of the vote (i.e. termination of the Executive Director). This includes clearly
identifying the following:
o Powers of Directors
o Powers ufOfficers
o Power of Executive Director
Saint John Specific DB&ORacnromendadnn Page 17
m Clearly defined roles for the staff and the board to ensure accountability |sclear
�
Criteria for Board to ensure that expectations of members are clearly outlined prior totheir
accepting a position on the board
6.2 Membership Fee Based
Consultation with other destinations indicates that fee based membership is the most common practice
and has been met with little to no resistance when introduced as industry understands the need to
contribute. Destinations that do not charge a membership fee tended to have higher fees for
partnership programs. Notably, the Executive Director of Tourism Hamilton (who does not charge a fee)
indicated that if they were starting over, they would charge a membership fee.
The participants in the industry aesuiomsvveredhuvvmTab1e62durinQ|nformationoessionsand asked
for input. Some questions were raised that have been addressed in this final recommendation, such as
value for money, broad based representation, and size of the board and staff. As well, this information
was communicated to industry and stakeholders vie email. Notably,� several organizations already
participate financially in cooperative partnerships for tourism.
Table 6.2
Place
Hotel/Room
Restaurants
Attractions
Other
Partnerships
Halifax
$11.50
$115
$115
$60
Yes
Charlottetown
$14.50
$250
$250
$250
Yes
Points to Note:
• Hotel above refers to all roofed accommodations
• The variance in accommodations is based on location (downtown versus non downtown) and/or
number of rooms
0 The variance in restaurants is based on number of seats
E The variance in attractions io based on full time equivalents (including seasonal staff)
Saint John Specific DMO Recommendation Page 18
°
While seven cities were reviewed for the purpose of this report, only the Atlantic Canadian
counterparts are shown (See Appendix 3, DMO's at a Glance)
Why fee based for Saint John?
Fee based models provide incremental funding for the DK4O and ensure that members are vested inthe
|ndus1ry, both of which are paramount to the success of tourism in Saint John. Revenues generated
from a membership fee based Saint John DhHO are projected to be in excess of $100,000, A DKOD will
provide learning, networking and sharing env|monnnam1 1m assist its membership in growing their
businesses to keep pace with the generated demand from oDK4O.
Benefits of membership in the DMO would', include but are not limited to:
0 Listing on web site
0 Inclusion in Visitor Guide
0 Board of Director's Eligibility
in Networking and training opportunities
0 Marketing Partnership and Coop Advertising opportunities
What happens if a tourism organization decides not to be a member?
If a tourism entity decides not to become a member of the DMC\ they will not be included in any
marketing efforts /DMO web site, visitor guide, and partnership opportwnhbed, they would not beapart
of any referral program that the DK4O may institute, and they could not participate in any DW1C}
activities, such axboard participation, networking, education, etc. Based on best practices, entities that
choose not to engage, for reasons financial or other, are typically not vested in tourism. There will of
course be ancillary benefits to non rnernbeo due to the efforts of the DK4O, as increased, business will
reach beyond the membership base.
Saint John Specific DMORecommendation Page 19
6.3 Staff Composition
Based on the projected funds available and the feedback from industry on Saint John's optimal markets
for return on investment, the staff structure outlined in Table 6.3 is recommended for the DIVIO at the
outset.
Table 6.3
I Position I lob Purpose
Marketing & The responsibilities of the position include advertising, public relations, and promotions.
Communications This position will work closely with the DMO team to develop and deliver literature, a strong
Specialist web presence, and other promotional materials. The individual also acts as the primary
contact for travel media and provides press kits, story ideas, general editorial and
photographic image support. The ind ' ividual aggressively seeks media opportunities through
all mediums including social networking to promote Saint John in local, regional, and
domestic markets. I
Leisure, Group With emphasis on the Canadian domestic market and US, this position is responsible for
Travel Specialist implementing the sales & marketing efforts for Saint John as a destination of choice for
group travel, cruises, and FIT (leisure) markets. This activity incorporates management of
key accounts, direct sales, promotions and new business development. This is achieved
through strategic planning driven by appropriate information collection, consultation with
partners and procurement of resources.
�G�rm�o�p Swn/bem& This position the primary p nin t of co ntmctfor servicing mf external and internal
Membership clients. The individual establishes and maintains liaison with convention organizers, Tour
Specialist and Travel operators, DMO membership/partners and strategic alliances deemed critical to
the successful attainment of the organization's goals. This position will ensure the smooth
|
operation of Visitor Information Centres in conjunction with a seasonal supervisor.
Saint John Specific DMO Recommendation Page 20
Points to Note:
ff 7 full time positions
X Contracted services would be utilized as deemed necessary. For example research, graphic
design, etc.
"
All positions vvnu|d be evaluated based on performance indicators and focused on
=
Measurable teem goals will foster a productive and collaborative environment and be
"
Mix of sales and servicing to ensure no1hnm| customer experience increasing repeat
visitation and word of mouth recommendations vvhUo creating new opportunities for
industry
=
Compensation will be based on industry standards and reflect the successful candidate's
experience
E Detailed job descdptKons|bted[nAppendh/2D,JobDeschotions
7. Purpose of the Saint John DMO
VVh||e the board of directors for the new entity will be tasked with the creation of strategic plan that
will include defining a clear mandate, mission, and vision for the DMO\it will without a doubt befocused
on increasing tourism revenues. The Interim Co `. |tteehooagreed1hatthevislomfnrthe DMO will be
along the lines of the following: SaintJohn will be the destination of choice in Atlantic Canada,
7.1 Key Tourism Objectives
The key tourism objectives of today are:
a To increase visitation to Saint John in all tourism markets
a To extend the average visitor length of stay
K To encourage repeat visitation
m
To position Saint John as the 'centre of tourism activities' in the Bay of Fundy region and St. John
River Valley
Saint John Specific DMORecommendation Page 21
� To increase positive publicity to Saint John through promoting Saint John proactively to the
travel media in Canada and the US.
The key tourism objectives of the future will be very similar to those listed above; however, it has been
clearly stated that in order to achieve the increased revenues, the DK4O must also:
• Create one Voice for the tourism industry
• Lead industry in a dynamic marketing 0'sales program that adapts and changes to trends and
opportunities ensuring all key segments identified are addressed
• Foster a shared vision throughout the tourism industry for the future of Saint John
• Encourage education, memtor|ngand development for the tourism industry
7.2 Short Term Goals for the DMO (Two years)
The primary short term goal will be to ensure a seamless transition from the current municipal structure
tn the recommended public private model. This will include:
�
Working with the 2 key financial stakeholders, the City of Saint John and the Saint John Hotel
Association, to negotiate multiple year service agreements /See Appendix 11, Sample Service
Agreements) `
• Ensuring small board with specific identified skill sets is in place promptly
• Ensuring the best staff iyhired
• Engaging industry through VVnrk|nQ Committees (marketing, membership, product
development, etc.)
• Creating a marketing plan that will address the global, economic and social issues while playing
to Saint John's strengths, and ensuring qualitative, measurable outcomes for future
benchnnarNng and accountability tnstakeholders
• Ensuring that Membership Recruitment and Management is property launched and maintained
• Reaching out tu entities involved in tourism and deliver on their needs to ensure duplication of
efforts |sminimized
• Communicating frequently both internally (industry, key stakeholders) and externally (clients)
• Continuing to be the leader in New Brunswick and the trendsetter for other New Brunswick
destinations ,
Being THE Voice of tourism for Saint John
Saint John Specific DMO Recommendation Page 22
Z3 Medium Term,Goalsfor the DMO (Five Years)
K4ed[unn term goals will be measured on results and continue to improve the sustainab|Utw of the
organization through member satisfaction and increased revenues. This will include:
o Assisting the Tourism Industry Association of New Brunswick (TIANB)io their advocacy
efforts with the Province to produce enabling legislation for DMF funding and ensuring
that Saint John's interests are met
o Ensuring that membership and partnerships with industry and stakeholders are being
evaluated and that adjustments are made if necessary tn meet the needs. Increased
revenues for tourism will result in increased revenues for the DKHO. This will a||mvv the
DMO to grow its sales and servicing levels, thus boosting tourism revenues once again
o Establish a coordinated approach for engaging the corporate community to assist the
DMO in securing major events and ensuring legacies for our community
o Championing the maintenance and creation of tourism infrastructure and assets
" increased Revenues
o Through the above noted efforts, the DM(} will work to increase revenues and thus be
able to fill identified gaps in product development while adding to its sales and servicing
to continue growth in tourism
a Establish Saint John as the Destination of Choice in Atlantic Canada
7.4 Create and Execute o Marketing Plan
Creating a marketing plan that will address the global, economic and social issues while playing to Saint
John's strengths and ensuring qualitative, measurable outcomes for future bendhmarkiog and
accountability to stakeholders will, be the first priority of the Executive Director, the staff and the board.
it will be key to the long term success of the DMQtoensure that the marketing plan is based on
measurable tactics that can show a return oninvestment.
Throughout the consultation process, industry and stakeholders identified markets and regions where
Saint John could strengthen its presence. Attracting major eventsandfncusingnnSportTouMsmvvene
two areas clearly identified as potential growth areas and these markets will need to be addressed in a
comprehensive marketing plan.
Notably, the regional and national markets are seen as an area of focus, with a smaller presence in the
United Sates due to the global and economic dintfate today. Afresh look at Saint John's presence in all
of its markets will produce new approaches for marketing and allow for sound decisions on
Saint John Specific Dy0ORecommendation Page 23
infrastructure to be made (for example, if a new visitor information centre were being considered,
perhaps it should be located on the east side of the city to intercept potential visitors).
Working with the staff ot New Brunswick Tourism 8k Parks ensuring Saint John b well positioned within
their marketing strategies and their multi-million dollar spend will continue to be of great advantage in
leveraging Saint John's dollars within our key markets. Utilizing their proven research methods in
navigating the evolving channels used to distribute tourism messages will also assist Saint John in
determining how to market (print s|Anage, web, GP5, downloads, intercept programs, etc.) and ensure
we are ahead of the trends.
7.5 Business Development Plan
Like the marketing plan, the business development strategy for the OK8U will be a priority for the
Executive Director, the staff and the board. Areas already identified by industry and stakeholders tu
increase the opportunities for industry includes the following:
• Implement a new position to focus onMajor Events and Sport Tourism
• Shift from servicing-only positions too sales role in all positions
• Focus on Regional (N8, NS, PE) for Meetings 8' Conventions not just National (Q1tavva,Toronto)
• Focus on Regional (NB, NS, PE) & National Annual Corporate Meetings (for example, TD Bank
" Facilitate networking, training and rnentohng programs for industry
• Work with our university and college in relation to research and workforce needs
• Evaluate and recommend on nodma| database management system for the DM0 that can
support and enhance sales efforts
K Ensure the DMO is forecasting with industry to identify gaps and to respond in a timely manner
with focused marketing campaigns to fill those gaps
Saint John Specific DMO Recommendation Page 24
8. Financing the Destination Marketing Organization
City of Saint John
Currendy, the City of Saint John contributes $929,7Y36 to Tourism Saint John. Approval of this model
does not commit the City to any new funds other than a 2.5% increase per year. This is reflected in the
five year budget analysis (See Appendix 12, Five Year Budget Analysis). The recommendation includes
the City transferring these funding to the DIVIO.
Pending approval of the Saint John specific model, the City would enter into negotiations w/iththeQN1[)
to finalize details ofa Service Agreement including payment schedules. 4quartedy payment system
would likely serve the needs of the DK4O. Service Agreements have worked extmanno|y well in
destinations that engage the public private DK40 model and samples are attached (See Appendix 11,
Sample Service ADreennents).
The City of Saint John currently owns and operates 3 Visitor Information Centres, (Highway 1, Barbour's
General Store, and Reversing Falls) and pays the lease for o4th (City Hall). The operating, maintenance
and lease costs are not included in the S929,7O6 noted above. The City would have two options; 1\the
City could torn over these assets to the DK8O along with the funds for maintaining and leasing or, 2) the
City could continue to own, lease and maintain the Visitor Information Centres while the DIVIO would be
responsible for the staffing. Either option does not have the City increasing its' current financial
contribution.
Note: Transition will commence upon the approval of this recommendation; however, it is anticipated
that the DMO will work in conjunction with Tourism fo/ot John until December 31, 2009 to ensure o
seamless transition. Should the complete transition be able to occur prior to December 31, 2009, a
separate Service Agreemmntfx the remainder of2DO would benegotiated.
Saint John Specific DMORecommendation
Page 25
The Destination Marketing Fee (DMF)
In order to enhance tourism marketing for the region, the Saint John Hotel Association 8JHA\ initiated
the process to implement a voluntary Destination Marketing Fee. In 2005 the SJHA mobilized their
efforts, hired a consultant to review best practices for a voluntary DKHF and engaged legal counsel.
Critical to the process was ensuring that the implementation of a new revenue stream would not
replace any existing funding by the municipality or industry. In May 2007, a voluntary DKdF of 2% was
implemented which created e significant new revenue stream from the private sector for tourism
� 60% of available accommodations in Saint John are charging the voluntary 2% DMF which
represents five accommodation providers including the Chateau Saint John opening in
September 2009
0 The Saint John Hotel Association administers the voluntary DMF
* The DMF generates $4OU0O0annually
m $2OO,UOQ has been spent on marketing programs since Its inception io2OQ7
* Current agreements with accommodation providers who charge the voluntary BK4Fmxpire in
May 2010; however the SJHA has confirmed they will all enter into new agreements through to
2O15 pending the results of this project
* The City mf Saint John agreed to maintain currant funding levels for Tourism Saint John ($1.OM)
through to2O1Q when the DK4F was implemented
The members of the Saint john Hotel Association, who are collecting the voluntary 2% Destination
Marketing Fee /DK4F1 have agreed to sign o S year service agreement with the DM[>. However, this is
conditional on this recommendation being accepted by the City of Saint John with a commitment for
municipal funding no less than the current level with an annual minimal increase of 2.5%, as well as
adequate representation on the board of directors of the DM(} by the hotel association. The service
agreement between the Saint John Hotel Association'and the DMO will see the funds generated by the
DK4F minus administrative costs transferred to the DK80.
Saint John Specific DMO Recommendation Page26
Membership Fees
It is anticipated that membership fees and partnership dollars will be in excess of$1%5,000 This
prediction is based on the history of partnership dollars to Tourism Saint John, with i'ncremental dollars
from membership fees ayoutlined in Table 8.1.
1061114-N
Hotel/Room
B&B Inns
Restaurants
Attractions
Other
Regional Partnerships*
$16.50
4 rooms or less
$115
$115
$100
Minimally, current levels of
$ 100 flat fee
funding
$12.50
$595
$595
$1700
$12.50 for each
additional room to
a max of 20 rooms
*Regional Partners include Grand Bay Westfield, Rothesoy, Quisparnsis, St. Martins and
9, Accountability
9.1 Performance Indicators
The Destination Marketing Association of Canada (DK84C) is in the process of fulfilling a membership
request of providing a national benchnnarNng program for DK4{ls (at a nominal cost). The primary
output of the study is not to provide a direct comparison of one OKxO to another, but to provide a
starting point to measure progress over time in terms of operating efficiency (cost per contact, revenue
per FTE, conversion rate, etc), the premise being that how the DMO manages the metrics overtime is an
indicator nf how efficiently the DMOis investing its resources.
Performance indicators for the Executive Director will be measurable goals based on return on
investment, staff performance, member satisfaction and evaluation by the board of directors. The
Executive Director will be tasked with ensuring that the staff's performance indicators are closely linked
to nanu|to. Additionally, surveys of nnenobeny, the board of directors and the staff will provide insight
into gaps of the DMO including the board, the Executive Director, and the staff. A high achieving Board,
Executive Director and staff will ultimately result in a high performing DMO.
Saint John currently shapes statistical |nfmnnadnn with the province, Fredericton and Moncton with
them reciprocating, and this practice will continue. There have also been discussions of forming an
informal network in the Maritimes that would include Halifax, Charlottetown, Fredericton, Moncton and
Saint John to provide a forum for discussion on best practices, missteps, statistics, issues of the day, etc.,
anit relates to the function and delivery of services ofUK4Os and tourism.
Saint John SnedMcDMQRecommendation Page 27
Beyond the performance indicators mentioned above the best measurement of success will be:
1. Increased Tourism Revenues for greater Saint John
I. Increased employment in the service sector
3. Increased business tax revenues from tourism businesses
9.2 Reporting
It is the recommendation of this report that at a minimum, the following mechanisms are in place for
accountability to industry and stakeholders:
"
Bi-Annual Meetings for Membership & Key Stakeholders to include but not limited to:
• Marketing activity update (last 6 months, next months)
• Budget YTD for the calendar year (January —December)
• Projections YTD eighteen months out by month, and 10 years out by year
• 4ouals for the previous Gmonths
• Training, networking and mentodmg opportunities coming up/needed
• Committee updates ifnecessary
• One of the bi'annue| meetings will bethe AGM where financials will bepresented
• Yearly presentation of financials and performance tothe City of Saint John and the Saint John
Hotel Association
• Annual evaluation of the Executive Director bv the board and membership
• Annual evaluation of the Board of Directors by the board itye|f, the Executive Director and
membership
• Bi-Anmuo| evaluation nf the staff members 6w the Executive Director
• After two years, an audit on the governance model initiated from this recommendation should
be carried out �
� �.
Saint John Specific DMO Recommendation Page 28
10. Proposed Path Forward (Transition Plan)
Pending the approval of this recommendation, the following steps will need to occur. It should be noted
that Gail 8renvner's contract includes the transition plan and thus she will becharged with ensuring the
following plan is implemented. Some items are sequential, while others can be happening concurrently.
What will be critical is that the day-to-day operations of tourism are not interrupted by the transition.
Part ofthe transition plan would be identifying commitments already made and ensuring they are
upheld, as well as ensuring no opportunities are missed during the transition.
1. Board of Directors appointed —thrnugh a onrn|oahoo process, the 11 member board vvouk1 be
filled based on the board criteria outlined in Appendix 7, Board Criteria. It will be crucial to
ensure the board members are put in place ao efficiently as possible and brought opto speed
with an orientation session that the current |ntar|no Committee and Executive Director facilitate.
2. Staffpoxhionsfi|ked — PoskionsvWUbeadvertised with a sub committee formed for the hiring
process os per the attached job descriptions, Appendix 1D, Job Descriptions. 8nsmmervvUivvodk
with the City nf Saint John Human Resource department to ensure effective communication
with the current Tourism Saint John personnel, should they wish to apply for any of the
positions. A hiring sub committee comprised of the stakeholders noted in the Board of Directors
(Table 6.1) will be formed so the staff and the board can be filled concurrently.
3. Existing staff in the City tourism department will have the opportunity to apply for a position in
the DK4O. Should they chose not to apply or be unsuccessful in competition for the new
positions then the City will have to identify, alternate roles for them in accordance with union
contracts and other employment standards.
r ^
4. Engage legal council to initiate the legal documents for a not-for-profit corporation, including
but not limited to:
a By-Lamm
0 Letters Patent
A Incorporation
5. Work with City staff to determine a phased transition plan for essential services yo as not to
disrupt day-to-day business and to ensure a seamless transition until such time the DIVIC) may
want 1orelocate:
IN Lease
w Computers
Saint John Specific DMO Recommendation Page 29
m Telephones, fax mobiles
G. Prepare the membership benefits package for the calendar year 2010, ensuring it is launched tu
industry with ample time for industry to include in their budgeting process for 2010, and to
allow time for Q&A's from industry to ensure a smooth transition to a fee based tourism entity
7. Establish a bank account and an accounting system for the DMO
8. Work with Tourism Saint John Acting Manager, Shirley Elliott, to determine commitments made,
to transfer intellectual property to the DK4O, and to identify external clients who should be
notified of the transition.
9. Identify potential lost opportunities due to the transition and ensure they are avoided
10. Finalize communication plan for internal and external clients of Tourism Saint John to ensure
clarity as outlined below
Internal
It will be vital to provide updates to industry and stakeholders on the progress nfthe
transition through brief, oemavvnrthv o-notices, sessions and/or one-on-one meetings. A
database of interested stakeholders and industry exists and can be used for these
communications. An open door policy for industry and stakeholders will assist in building
confidence in the DK40 as it matures and this model has proven successful in other
External
With a phased transition approach and the assumption the City of Saint John will be able to
provide the Dk4O with URLs, phone numbers, fax numbers, etc, the approach will be
different depending on the d|ent/market.
For instance, with regards to the Meetings & Conventions market, any clients booked
and/or identified as high potential clients should be contacted by the appropriate staff
member and advised of the transition, while assuring them that this will only improve their
experience in Saint John.
Further, this transition will have zero impact on the leisure traveller and should be a nun-
event for our potential leisure traveller. Marketing campaigns may be different, service at
VIC's may change, but the change in structure does not need to be communicated en mass
to this segment.
Saint John Specific DMO Recommendation Page 30
11 Concerns & Anticipated Challenges ( )
The transition to a DMO to address the tourism marketing needs of Saint John (public and private), while
a major step forward, will also bring with it a number of matters of concern. The table below illustrates
concerns that have arisen throughout the consultation process.
Concern
Response
Why can't we use the current system to
The current system cannot provide:
accomplish the same?
Elimination of duplication of efforts
Entrepreneurial Spirit
Why Change?
Flexibility in funding
A vote for industry
Centralized Communication
Networking & Training
Assistance with Product Development
What will happen to existing partnerships and
The DMO wHI be the recognized authority for all
committees?
tourism related activities and will build on the
tremendous partnerships that already exist within
the industry and engage membership and
stakeholders in committees and partnerships.
The City derives supplemental funding from a
Consultation with the provincial government,
variety of government and private sector
other municipalities/towns and private sector
partners for various initiatives.
partners has shown they would continue to
contribute both financially and with human
resources to the DMO based on the information
contained in this recommendation.
It will be difficult for any group or organization,
The general mandate of the DMO will be to
including the City, to make a long-term
increase tourism revenues and to ensure that the
commitment (financial or otherwise), until the
right people are in the right roles. This will ensure
leadership, marketing strategy and desired
the right marketing and business development
outcomes are explicitly determined.
plan is developed for Saint John, thus creating the
desired outcome of increased revenues. Based on
this premise organizations should be confident in
the outcomes and be able to make the necessary
commitments to ensure success.
Saint John Specific DMURecommendation Page 31
Concern
Response
Stability of the voluntary Destination Marketing
The DMF has been collected since May 2007 and
Fund (DMF)
has consistently been in the $400K range annually.
The members of the Saint John Hotel Association,
who are collecting the voluntary 2% DMF, will sign
Saint John Hotel Association currently does not
a 5 year service agreement with the DMO which
contribute the DMF funds to Tourism Saint John
will have the funds minus administration fees
transferred to the DMO. This is conditional on this
recommendation being accepted by the City of
Saint John with a commitment for municipal
funding no less than the current level with a
minimal 2.5% annual increase as well as adequate
representation on the board of directors of the
DMO by the hotel association.
Stability of the funding from the City of Saint John
The recommendation calls for a 5 year fee for
service agreement to ensure financial stability for
the DMO.
• Tourism is the 4th largest employer in
Saint John
• Tourism creates jobs, leading to residential
purchases which increases property taxes
for the Province of New Brunswick and the
City of Saint John
0 Tourism has generated incremental
business tax revenues for the Province of
New Brunswick and the City of Saint John
• The City of Saint John committed to
maintaining its level of funding for 3 years
through to 2010.
Tourism is a priority sector for the future growth
of the City of Saint John and will assist in growing
the tax base to ensure citizens continue to have
essential services as well securing the identified
priorities of the City.
Saint John Specific DMO Recommendation
Page 32
Concern
Response
Stability of funding from industry and other
Industry and other key stakeholders have
stakeholders
indicated they would agree to membership fees as
outlined in this recommendation and many
already participate financially in tourism
partnerships.
Long term sustainability
Multi-year agreements with the Saint John Hotel
Association and the City of Saint John will be
critical to the long term sustainability of the DMO.
As well, the push by the Tourism industry
Association of New Brunswick to advocate for
enabling legislation for a destination marketing fee
provincially, along with the NB Cities Association
voting in favour of this approach, indicates an
appetite for the legislation which would enhance
the sustainability of funds for Saint John.
Funding is needed to pursue large events
The recommendation includes a position for
securing major events. The successful candidate
will be tasked with developing and implementing a
sales and marketing plan to attract large events to
the community.
Festivals
The above noted position will also be tasked with
taking our current festivals to market as well as
leading a committee to provide marketing
guidance to festivals,
Signature Event for Saint John
The recommendation does not include the
creation of a signature event; however, this has
been identified as a gap, and as the DMO matures,
it would be a natural to lend its expertise to the
creation of a signature event.
Saint John Specific DMO Recommendation
Page 33
Concern
Response
Product Development
The consultation process identified a gap in
product development and stewardship of tourism
product. Establishing two way communications
with the organizations (ESJ, City of SJ, SJWD,
private industry, etc.) who influence and develop
product will be key to the success of tourism for
Saint John. Thus the Executive Director of the
DMO will be tasked with forming a committee
with these organizations.
How will people be appointed/elected to the
The recommendation outlines board member
board?
criteria and how individuals will be elected or
appointed to the board. Essentially, it will be
What will the Board Member qualifications be?
important for the board to be broad based of
tourism sectors and to also consider the skill sets
needed to accomplish the goals of the board.
There is a strategic leadership void in the Tourism
This model will ensure a succession plan for an
department.
Executive Director through mentoring. As well
there will be a detailed plan for recruitment should
Will there be a succession plan?
the position become vacant.
Existing staff members have contractual
The Tourism Department is in a period of
protections that cannot be ignored.
transition. A number of positions have been left
vacant or have been backfilled on a casual basis
The City has an obligation to respect their
pending the outcome of the DMO deliberations.
commitments.
The existing permanent positions covered under
What will happen to current Tourism Saint John
the collective agreement will be eligible to apply to
staff?
the DMO for any new openings or will be
reassigned to other positions within the City's
establishment.
Saint John Specific DMO Recommendation
Page 34
12~ Cautions
Should coomi| approve the recommendations outlined in this report, it will be critical to ensure good
stewardship. Of particular importance to the success of the DMO are the following:
]L Communication will continue to be critical well beyond the transition process. It will be
important that the transition is seamless tu clients, and that both the transition ax well aofuture
activities of the DK8O be well communicated to industry and stakeholders, with frequent
updates and transparency. Lapses in cnnnnnunloot|om could create uncertainty with clients and
industry alike, and could impede the success of the DM(}.
Z. Of vital importance to the success of the DMC> is ensuring that the right people are in the right
roles to create a highly effective team. Specifically,� the nm|as of executive director, the DMQ
staff and the board of directors all must be filled based on oNU sets, proven ability tnwork in a
team environment, and passion for the industry.
3. The establishment of a solid succession plan for the executive director is imperative to the
longevity of the DM{}.
4. Clear roles and responsibilities for the board and the staff, as well as the interaction between
the two, will be important in ensuring the DMO's success.
5. A review of governance and function within 2 years of implementation will be necessary to
address concerns that may arise and to ensure that the DMO is leading the industry and serving
the needs of both clients and stakeholders.
b. At minimum, a yearly review of the marketing strategy should be conducted and updated as
naqw]ned based on trends and outcomes. Considering today's environment, this review/ is
essential and should perhaps be even more frequent. Failure to review and revise the marketing
strategy could result io non-performance in key or emerging markets.
Saint John Specific DMO Recommendation
13. Recommendations
Recommendations for approval by Council:
1. Support the establishment of a non-profit corporation (Destination Marketing Organization)
to provide destination marketing function for Saint John
2. Eliminate the City's tourism department and have all functions handled by the DMO subject to
a five year service agreement
Fund the new corporation in an amount equal to the funds being expended on tourism
function including owning, leasing and maintaining the Visitor Information Centres with a
2.51 annual increase
Note: Approval of these recommendations does not cornmit the City to any crew funds other than the
2.5% increase per year
I
Saint John Specific DMO Recommendation Page 36
Appendix 1, Tourism Industry Performance, City of Saint John - 2002-2008 p. 38
Appendix 2, Tourism Organizations in Saint John p. 63
Appendix l,DM[/sa1aGlance p. 65
Appendix 4, Inventory ofMeetings p.74
Appendix 5, Raw Data from Industry Sessions p. 79
Appendix 6, Sample By-Laws p 88
Appendix 7, Board Criteria, sample p. 129
Appendix 8, Code of Ethics, sample p. 131
Appendix 9, Conflict ofInterests, sample p. 133
Appendix 10, Job Descriptions p. 135
Appendix 11, Sample Service Agreements p, 151
Appendix 12, Five Year Budget Analysis p. 164
Saint John Specific DMO Recommendation
Page 37