Annual Report. visittuscaloosa.com

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1 Annual Report 1 visittuscaloosa.com

2 Executive Message Greetings! This has been an important year in the growth and development of Tuscaloosa Tourism and Sports (TTS). TTS was able to both recruit and manage some key events with tremendous economic impact for our community. The key to the success of TTS is the formation of community partnerships. We are thankful to be in a community that is able to embrace and visualize the importance of tourism. Special thanks go out to the City of Tuscaloosa, the Tuscaloosa County Commission, and our volunteer Board of Directors for your unwavering support of tourism. The message we are emphasizing is Tourism Matters. Tourism is an economic engine that drives development. We have put together some key facts in this annual report to articulate the importance of tourism to our area. Tourism comes in many forms and includes many stakeholders, such as hotels, attractions, restaurants, and retail shops. At TTS, we focus on providing the best possible service to both tourists and tourism stakeholders. Internally, several changes occurred in the makeup of the team at TTS this year. I am honored to be the new CEO/President of this organization. I am passionate about the progressive growth of our community. Tuscaloosa Tourism & Sports is a vital part of instigating growth in our region and I am anxious to move forward. As we look forward to next year, we seek to continue to develop the vision of Tuscaloosa as a destination. We will focus on the development of new community partners and enhance our existing partnerships. I am thankful for a dedicated and talented staff as well as a supportive Board of Directors. I look forward to great things at TTSC. Sincerely, Gina Simpson CEO/President 2014 Board of Directors Charles (Chuck) Sittason- Chairman retired Chairman of Regions Bank Aaron Vold-Vice Chairman Asst. Athletic Dir. Major Gifts-UA Gary Minor- Secretary Executive Director -PARA John Maxwell (Max) Karrh, Jr.- Treasurer Senior Vice President- Bryant Bank Toby Wilson- *At-large EC member President-Wilson Hospitality Myron Coats - *At-large EC member Probation & Parole Sr. Officer-Pardons & Paroles Cynthia Almond City Council District 3/Attorney/Finance Comm. Head-City of Tuscaloosa Charles M. (CM) Newton retired University of Alabama Men s Basketball Coach Rikesh Patel Chief Operating Officer Tuscaloosa Hospitality, LLC Tracy Braggs Logistics Supervisor-BROSE Bill Lloyd Business Owner- Wilhagan s Grille & Tap Room Dr. Kelvin Croom Senior Pastor-College Hill Baptist Church Jennifer Anderson Asst. Dir.-Bryant Conference Center- UA Subrina Champion Community Relations Specialist- Mercedes-Benz

3 TABLE OF CONTENTS Who We Are 4 What We Do 5 Overview of Tourism Industry 6 How Does Tuscaloosa Compare 8 Achievements 9 Organizational Highlights 10 Financials 11 Community Partners 13 BIGThanks We could not do the work without the help of our incredible partners, including the Mayor of Tuscaloosa, Tuscaloosa City Council, the City of Tuscaloosa, our Board of Directors, Tuscaloosa County, Tuscaloosa County Commissioners, our volunteers and other community partners. Big thanks for your continued support! Stay In Touch Want to know what s going on in Tuscaloosa or what we re up to at Tuscaloosa Tourism & Sports? We have multiple information outlets for you to connect with us. VisitTuscaloosa.com Capitol Park 1900 Jack Warner Pkwy, Tuscaloosa, AL Phone: (205) Fax: (205)

4 Druid City Arts Festival Tuscaloosa Tourism & Sports Who We Are T uscaloosa Tourism & Sports (TTS) is a 501 c(6) non-profit organization funded by the City of Tuscaloosa, the Tuscaloosa County Commission, and various fund raising efforts. The primary purpose of TTS is to enhance economic development through destination promotion. Destination promotion drives economic development in four ways: attracting strategic events, raising the destination profile, building transport networks, and raising the quality of life of residents. The primary measure for judging the success of TTS is the amount of lodging tax generated in the Tuscaloosa area. Lodging taxes are paid by individuals spending the night in hotels. Therefore, the tax we look to increase is paid by visitors to our area, not our local hotels nor most of the citizens that live here every day. Thus, as we increase the amount of lodging tax collected, we help to relieve a portion of the tax burden our citizens must pay to enjoy the services offered by our government. The economic impact our agency has on the community is significant. Tax dollars generated by tourism produce tax savings for each household. To be specific, without the taxes produced by tourism, each household would have to pay $1,452 more in taxes each year to maintain services currently offered by the government. 4

5 tour de tuscaloosa Tuscaloosa Tourism & Sports What We Do We Are Growing Tuscaloosa & TTS are in a growth pattern helping to grow tourism related taxes collected by lodging last year at a record high rate. Since its formation in 2010, TTS has helped to produce significant gains in lodging taxes collected. Lodging Tax has increased annually o 2011: $4,748,114 o 2012: $4,978,382 o 2013: $5,144,645 o 2014: $5,661,385 TTS Contribution The manner in which TTS helped to increase the lodging tax are: Fiscal Year TTS created, managed, or supported events resulting in: $42 Million Economic Impact 23,042 Hotel Room Nights 6,370 Tourism Related Jobs in Tuscaloosa County Event Specifics Sports Highlights o 7 Events with over $1 Million Economic Impact each o 1 Event with $7.88 Million Economic Impact o Involved in 48 events (~4 per month) Group Tourism Highlights o Druid City Arts Festival - 7,200 attendees o Inaugural Alabama All Veteran s Reunion o $32,000 Grant from Tuscaloosa Delegation o Involved in 81 Events (~7 per month) Results of the Growth This activity has resulted in growth in the lodging industry as evident by 3 new hotels under construction Prospects of 3 more soon In 2014, tourism provided $1,452 per HOUSEHOLD in tax relief from tourism revenue. Again, HOW DOES THIS IMPACT YOU? Each household in Alabama would pay $1,060 more in federal taxes and $393 more in state taxes to maintain current services without the tax generated by the travel and tourism industry. 5

6 Overview of Tourism Industry and Economic Impact Travel & Tourism is One of America s Largest Industries According to data compiled by the U.S. Travel Association in 2013, travel and tourism generated $2.0 trillion in economic output, with $855.4 billion spent directly by domestic and international travelers that spurred an additional $1.1 trillion in other industries. It directly generated $129 billion in tax revenue for local, state and federal governments. Direct spending by resident and international travelers in the U.S. averaged $2.3 billion a day, $97.7 million an hour, $1.6 million a minute and $27,125 a second. With an economic impact this great, it is imperative that Tuscaloosa Tourism and Sports continue to monitor significant trends within the industry and to develop a strategy to insure our community is maximizing its potential in the market. 6,370 JOBS Tourism-related jobs in Tuscaloosa 6 Lake Tuscaloosa

7 Overview of Tourism Industry and Economic Impact Travel & Tourism is One of America s Largest Industries The U.S. Travel s research department produces the Domestic Travel Market Report each year. Key findings of the 2012 report include: Fewer adults are traveling with children. In 2012, 26 percent of domestic leisure travelers traveled with children under the age of 18 (408.5 million trips) compared with 2008, when 31 percent of adults traveled with children (466.2 million trips). Driving versus flying. In 2012, 33 percent of domestic business trips included air travel compared to just 11 percent of leisure trips. Nearly eight in ten (79%) leisure trips were by car compared to less than half (48%) of business trips. Leisure travelers are older than business travelers. o The average age of leisure travelers is 47.5 years old. Mature travelers comprise 36 percent of leisure travel volume (18% are 65+, 18% are 55-64). Nearly two in ten (19%) are 45-55, 17% are 35-44, 20% are and 8% are years old. o The average age for business travelers is 45.9 years old. The majority (26%) are aged 45-54; 20 percent are 55-64; nearly one quarter (24%) are 35-44; 19 percent and four percent years of age. Only 7 percent are 65+. Traveling households earn more than non-traveling households. In 2012, the median household income for domestic leisure travelers was $62,500. For business travelers, the median household income was $87,500. This compares to $52,800 for the general U.S. population. Trip planning sources have shifted over the last several years, with social media and mobile devices being used more often. In 2012, nearly one-quarter (23%) of domestic leisure travelers relied on friends and relatives to plan their trips, while three in ten (31%) utilized their own past experiences. One in ten used destination websites, nine percent used traveler provider websites (airline, hotel, rental car, cruise, tours, etc.), five percent used social networking and four percent used a mobile device to help plan their trip. Children s Hands-On Museum 7

8 How Does Tuscaloosa Compare on a national and state level in the tourism industry? United States Industry Statistics At-a-Glance According to data reported by Hotel News Now, overall, in fiscal year over year results from 2013 to 2014, the US hotel industry s occupancy was up 3.9% to 65.7% and the average daily rate rose 5.3% to $ State of Alabama Industry Statistics At-A-Glance According to data from the State of Alabama Tourism Economic Impact Report for 2014, year over year occupancy rates rose from 54.8% to and the average daily rate increased from $76.00 to $ Tuscaloosa County Industry Statistics At-a-glance In fiscal year : According to data from the Smith Travel Report September 2014, fiscal year over year occupancy rates rose 3.0% from 59.8% to 61.5% and the average daily rate rose 8.2% from $78.37 to $ % Annual sales up 11.4 percent over 2013 Total Properties = 39 presently with 2 new properties scheduled to open in Total Guestrooms = 3,078. Two new properties will add an additional ~250 rooms. Annual Sales for Fiscal Year 2014 = $58,606, (Up 11.4% over fiscal year 2013) Direct Travel Related Employment: 4,057 jobs (6th largest in the state) 8

9 Year of Achievements Some of the Accomplishments from the previous year In fiscal year : TTS utilized a $1.5 million operating budget to produce an economic impact of $42 million for the Tuscaloosa area. TTS invested $430k invested back into the community for event recruitment, management, and support. TTS events produced $446,000 in direct tax dollar contribution to the City of Tuscaloosa general fund. TTS aided in creating monumental annual increase in lodging tax collections over $500,000 increase in one year. TTS hosted & supported over 130 events last year including seven in-house events. In 2014, TTS managed over 6,000 volunteer hours for events. $430k invested back into the community 9

10 Organization Highlights Tuscaloosa Tourism & Sports TTS Staff joined United Way as volunteers for Hospice of West Alabama Developed a new logo in partnership with the Tuscaloosa News Branding Tuscaloosa Project developed & execution started Developed Director of Tourism Development Position New Community Partnership Plan for Sponsorships of TTS Events Developed new relationships & partnerships within the Tuscaloosa area TTS s Gina Simpson & Brandt Garrison Volunteering for United Way 10

11 Financials Tuscaloosa Tourism & Sports STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION - DETAIL For the years ended September 30, 2014 and REVENUES: City of Tuscaloosa $ 1,050,000 $ 1,050,000 Tourism enhancement fund 278, ,950 Tuscaloosa County 100, ,000 Event sponsorship 93,459 31,150 Miscellaneous 14,020 9,991 TOTAL REVENUES 1,535,729 1,335,091 EXPENSES: Personnel: Group health insurance 46,701 40,789 Disability insurance 5,121 5,425 Retirement 10,595 11,532 Payroll taxes 40,971 32,885 Salaries 510, ,265 Contract labor Total Personnel 614, ,396 Marketing: Trade shows 35,222 35,920 Education & training 13,352 3,346 Advertising & promotions 165,425 7,327 Media placement 9,359 94,237 Radio 4,668 5,393 Collateral materials 50 - Promotional merchandise 25,616 28,457 Special events and promotions - 28,432 Travel 1,050 - Website - 8,143 Film commission - 45 Total Marketing 254, ,300 Bid fees and event expenses: Event sponsorships 169,427 24,510 Tourism enhancement fund - bid fees 278, ,950 Total bid fees and event expenses 447, ,460 (continued) 11

12 Financials Tuscaloosa Tourism & Sports TUSCALOOSA TOURISM AND SPORTS COMMISSION, INC. 19 STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION - DETAIL For the years ended September 30, 2014 and 2013 EXPENSES: (Continued) Operating: Amortization $ 2,733 $ 1,944 Auto lease 2,943 5,887 Auto maintenance 649 4,136 Depreciation 26,311 23,389 Dues & subscriptions 12,669 10,489 Gifts & flowers 1, Insurance 15,676 9,783 Legal & accounting 27,058 20,218 License & taxes 455 1,755 Miscellaneous 310 2,037 Office supplies 11,002 10,785 Penalties & late fees Postage 1,866 2,907 Rent 12,000 12,000 Repairs & maintenance 12,847 10,026 Telephone 19,486 18,895 Travel 40,739 44,834 Total Operating 187, ,447 TOTAL EXPENSES 1,504,884 1,062,603 NON-OPERATING REVENUES (EXPENSES): Interest income 1,000 1,273 Interest expense (1,623) (750) Loss on disposal of assets (640) (8,507) TOTAL NON-OPERATING REVENUES (EXPENSES) (1,263) (7,984) CHANGES IN NET POSITION 29, ,504 Net Position, Beginning of Year 794, ,487 NET POSITION, END OF YEAR $ 824,573 $ 794,991 12

13 Community Partners Tuscaloosa Tourism & Sports Alabama Athletic High School Association Alabama Bass Fishing Alabama Cornhole Association Alabama League of Municipalities Alabama Open Golf Alabama State Chess Alabama State Open Bowling Alabama Veterans Affairs ASA Archery Bama Rama Crimson Classic Capstone Classic Basketball City of Tuscaloosa Clash at Capstone Bodybuilding County of Tuscaloosa DCH Foundation Druid City Arts Festival Fire Chiefs Executive Hillcrest High School Softball Hot Hundred Bicycle Ride Junior League of Tuscaloosa Lymanland Men s Ultimate Frisbee NA Fire Training Directors Conference Post 34 Baseball Riptide Spring Fling V Softball Rotary Shelton State Community College Skyy Boxing w/deontay Wilder Stillman College Strikehard MMA T-Town Throwdown Ultimate Teen Masters Bowling Tough Enough to Wear Pink V Softball Tuscaloosa Angel Flight Tuscaloosa Classic Disc Golf Tuscaloosa Delegation Tuscaloosa Half Marathon Tuscaloosa Hoteliers Tuscaloosa Kid s Triathlon Tuscaloosa Museums & Attractions Tuscaloosa Regional Airshow Tuscaloosa Restaurants Tuscaloosa Warrior Basketball United Way University of Alabama USA Ultimate Frisbee USA Water Skiing Regionals Warrior Dash West AL Golf Classic

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