Legislature(1999 - 2000)
02/16/2000 09:03 AM Senate FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE FINANCE COMMITTEE LOG NOTES 02/16/00 GENERAL SUBJECT(S): Overview: Presentation by Alaska Tourism Industry Association And Alaska Tourism Marketing Council Status Report on Tourism Reorganization and Marketing Efforts The following overview was taken in log note format. Tapes and handouts will be on file with the Senate Finance Committee through the 21st Legislative Session, contact 465-4935. After the 21st Legislative session they will be available through the Legislative Library at 465-3808. Time Meeting Convened: 9:03 AM Tape(s): SFC-00 # 28 Side A PRESENT: Senator Parnell Senator Adams Senator Torgerson Senator P. Kelly Senator Donley Senator Green Senator Phillips NOT PRESENT: Senator Wilken Senator Leman ALSO PRESENT: SENATOR ELTON ANN CAMPBELL, CHAIR, ALASKA TOURISM INDUSTRY ASSOCIATION TINA LINDGREN, LOG SPEAKER DISCUSSION 000 CO-CHAIR PARNELL Introduction 020 ANN CAMPBELL, CHAIR, ALASKA TRAVEL INDUSTRY ASSOCIATION Small business owner Describe her background in tourism. 36 In this presentation, I will outline where we are in the reorganization and where we would like to go. 41 Handout: ATIA Update Describe what information it contains. The first page is a summary of the organizational efforts. The next two pages is the fiscal note that was adopted with last year's legislation. There is a page from the millennium plan that recaps the budget assumptions. Finally, the handout contains information on new membership, membership benefits and the dues structure. 53 SB 107 was passed last year. The intent is for the private sector to pay more and to also raise more money for tourism marketing. The reorganization is going well. We spent the summer months looking for charter members who would be responsible for the election of the first board of directors. We have 1056 members. Those members represent many different types and sizes of businesses with the primary representation being smaller businesses. 84 The charter members elected 17 directors from across the state to serve on the board. There is a very good representation of the industry from convention and visitor bureaus, a cruise company, wilderness lodge operators, hotels, small retail stores, bed and breakfast owners, small consultant firms, etc. 103 The first order of business for the board was to adopt bylaws and elect officers. 107 We then began looking for a president and chief operating officer. We hired Tina Lindgren for that position. 112 We filled out the remaining six seats on the board with appointed members. Two of those members represent cruise companies, one represents a small rafting operation, one is highway operator, one represents a Native corporation and one is a representative of the Anchorage Convention and Visitor's Bureau. 122 We also continued our outreach efforts to recruit members. We held five marketing forums across the state. While not hugely attended, those who were present participated greatly. A meeting was held in January to determine the goals of the association. 140 Beginning to address the structural issues, such as a dues structure. The original millennium plan was to have two tiers of memberships. We added two more categories. The first was for very small businesses, that are not ready to fully utilize the services of the association the second was for businesses that serve visitor industry businesses. We also created an individual category. The intent of the new categories was to ensure participation by all. 165 We are planning an upcoming membership drive to recruit new members and raise more money. 171 We are addressed transitional organizational issues such as the legal and accounting procedures for transferring funds from the previous organization. 177 The board has concerns with the sunset of the previous Alaska Tourism Marketing Council (ATMC). It is important that those usage rights are available to the new organization. 185 CO-CHAIR PARNELL Describe usage rights. MS. CAMPBELL Copyrights on photos and advertisements, etc. CO-CHAIR PARNELL What is the hold up? MS. CAMPBELL There is no holdup we just need to deal with it before the ATMC sunset. 194 The timelines established in the bill call for a finalized contract this August. That date is too late for us, we are hoping for April. We are already making commitments without a contract, such as for a vacation planner. 204 Our commitment is to raise the $2 million match. The different revenue sources include community contributions, which will come through convention and visitor bureaus. A committee has been formed to establish a method of garnering these contributions. 220 Another revenue source is cruise ship contributions. I have been told they are committed to participation in our organization. 225 There is also membership driven revenue sources that we need to establish. We are trying to accomplish two things. One is to include the very small businesses and the other is to raise additional funds. The growth in visitation has been slipping and we need to increase the available marketing funds to put Alaska back in front. 245 We appreciate the flexibility of the legislature to use private funds. We have depleted the cooperative marketing funds. 250 The millennium plan has consistently requested $5 million for the first year to build up the marketing program. We need to also raise at least $2.5 million from private sources. We may have the ability to raise more. The intent is to phase the contribution by the legislature down to $4 million in the third year. 272 We are committed to producing a vacation planner and a creating website this year. We intend to continue to work with the Division of Tourism in the transition. 282 An important issue for the tourism marketing effort is a separate BRU allocation for the marketing contract, so there is no confusion of what funds go where. 290 CO-CHAIR PARNELL I thought that was clear. What is the hold up? 293 MS. CAMPBELL It is not clear, there has been some questions about the department's budget. 295 CO-CHAIR PARNELL What is not clear? Part of my job is to ensure that funds are used according to legislative intent. If there is a problem, it is our job to fix it. I have heard some grumbling from businesses as to how the program is carried out. 310 MS. CAMPBELL Refer to the fiscal note included in the handout compared to the governor's proposed FY01 budget. It is confusing to us what is the intent of the legislature. We want to know if the organization will be receiving the full $5 million. SENATOR PHILLIPS Are we paying attention to the governor's budget? MS. CAMPBELL 321 CO-CHAIR PARNELL You talked about finalizing a contract by April. What has to happen to get that contract into place? 327 MS. CAMPBELL The organization and the division need to decide the broad goals of the program and the major components will be. To us, the major components would be things such as domestic marketing, international marketing, highway marketing, inquiry fulfillment, etc. We would then develop a marketing program to implement, present the program to the division and agree to final terms. We are encountering a legitimate philosophical difference with the division as to what is an appropriate list of components, who will make that decision, how and under what timeframe. 336 CO-CHAIR PARNELL Is it differences with interpretation of the legislation? Is the legislation that open? 338 MS. CAMPBELL Yes. It is clear that once we put together a plan, the division will review and approve it. What is unclear is who most represents the visitor industry and how are we going to decide the elements of the program. We have met with the division weekly since the beginning of January. The suggestions of the division we feel are too narrow. We think the scope of the program should focus on all aspects of the visitor industry. 358 CO-CHAIR PARNELL Is it fair to say that the division is trying to maintain more participation than you intend? MS. CAMPBELL The question is to how to structure what will be accomplished. 367 CO-CHAIR PARNELL Other visitor industry people have expressed the same frustration to me. Are you at an impasse with you negotiations? If so, what can we do to help? 372 MS. CAMPBELL We are concerned that this needs to move along at a faster pace. We think a separate BRU would be helpful to make the funding very clear. Finally, we need to understand who is to be involved in the decision making. 383 CO-CHAIR PARNELL You don't feel that was clear in the legislation? MS. CAMPBELL I don't think it is clear to all parties. We each believe it is clear, but differ in our consensus. 387 SENATOR PHILLIPS Are you asking for an increase in funding over last year? CO-CHAIR PARNELL There was an increase in contractual funds. MS. CAMPBELL SENATOR PHILLIPS I'm asking the same question to other groups. I understand what you are saying in regards to timing and marketing. TINA LINDGREN, PRESIDENT, ALASKA TRAVEL INDUSTRY ASSOCIATION Yes and no. When the enabling legislation was first introduced, the sponsor's intended was that private matching funds would not be contributed to the state program receipt authority as in the past. This year, between the division and ATMC, the program receipts total $6.7 million being spent. The fiscal note for next year shows $5.9 million. More will be spent because more will be raised, but the state portion will go down. We understand that the division has been combined with two other divisions, therefore it is hard to compare apples to oranges. CO-CHAIR PARNELL 414 MS. CAMPBELL CO-CHAIR PARNELL 415 SENATOR GREEN Why don't we have a department fiscal note for comparison? I would like to see one. 421 CO-CHAIR PARNELL This is the fiscal note that from last year that accompanied the legislation. Explain Ms. Lindgren's answer as to the governor's allocation. When the department submitted its budget with the governor's budget request, functions and divisions were combined making it difficult to determine what funds go where. He suggested the budget subcommittees could address this. 426 SENATOR GREEN The effective date is awkward because it doesn't leave any of the players in an enviable place. The contracts have to be made early yet we are on a rigid schedule to make appropriations. 432 CO-CHAIR PARNELL Effective date of SB 107? SENATOR GREEN Yes. Because there is going to be a long transition. We also need to know how successful the new group will be with fundraising so we can plan for next year. This is supposed to be cooperative. 444 SENATOR PHILLIPS Is independent highway traffic up or down? GINNY FAY, ACTING DIRECTOR, DIVISION OF TOURISM, DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT [Out of range] About even. 449 SENATOR GREEN Section 8 shows an effective date of July 1,2002. 453 MS. LINDGREN The effective date is this year. You are looking at the date when the matching funds requirement is to go up. The greatest challenge is not knowing what amount you will fund. It is a matching program. 464 CO-CHAIR PARNELL This is difficult because I thought we would be reducing state personnel with the private sector taking over some of the functions. He had hoped to see a saving for the state. To date there has been no reduction. AT EASE 9:35 AM SENATE FINANCE COMMITTEE LOG NOTES 02/16/00 Page 7
| Document Name | Date/Time | Subjects |
|---|