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Knox-County-Tourism-Consortium-RFI-Compressed.Pdf PO Box 2506 Knoxville, TN 37901 Phone: 865-523-7543 Fax: 865-523-7312 January 17, 2019 Knox County Procurement Division Suite 100, 1000 North Central Street Knoxville, Tennessee 37917 Attention: Ben Sharbel Dear Ben, I am pleased to submit a response to RFI #2767 on behalf of the Knox County Tourism Consortium. The Arts & Culture Alliance (ACA) will again function as unpaid administrator of Knox County’s contract with 24 arts and culture organizations. Under the terms of the county’s contract with ACA and ACA’s contracts with the 24 organizations, the consortium will deliver more than 4,000 tourism geared events and activities from July 1, 2019 through June 30, 2020. The visitors the consortium attracts to Knox County will bring millions of dollars into the county as they patronize local restaurants, shops, vendors, and hotels. Of course, the Hotel Motel Tax the consortium’s visitors pay as a part of their lodging expenses will return to county coffers. ACA has assembled an outstanding team of attractions, referred to within the RFI response simply as “the consortium”. These attractions are particularly well suited to draw visitors into the county by presenting vibrant festivals, live performances, history reenactments, gallery tours, nature experiences, and fairs. Economic Impact In the past year alone, the consortium has attracted visitors from all fifty states and international visitors from more than 80 countries to Knox County bringing nearly $18 million into the county with them. Visitors from surrounding East Tennessee counties have added to that jackpot by more than $16 million. The consortium supports $12 million in jobs and pays $18 million more to local vendors. Program Evaluation Each member of the consortium tracks its audiences, its own spending, and its sources of income on a quarterly basis. ACA gathers that data into one quarterly report to the county. Both ACA and the county know exactly how the consortium (and each member within it) is performing compared to previously stated goals. Community Support The consortium enjoys the support of hundreds of corporations and foundations and thousands of individuals. No other single entity enjoys that breadth and depth of community support. Budget/Accountability ACA has used 990 filings by the consortium to build the budget for this RFI response. Each member of the consortium is bound by a written contract with ACA and payments are made to consortium members only on a reimbursement basis. Thank you for your many kindnesses these past five years since the county and the consortium have been partners in attracting tourism and economic development to Knox County. We appreciate your consideration. Liza Zenni Executive Director KNOX COUNTY TOURISM CONSORTIUM REQUEST FOR INFORMATION RESPONSE Defined Services for Non-Profit Agencies – Solicitation #2767 TABLE OF CONTENTS Submission Forms Page 4 Economic Impact Page 7 Scope of Services Page 10 Program Evaluation Page 30 Community Support Page 35 Budget/Accountability Page 41 RFI Summary Page 44 ECONOMIC IMPACT The Consortium Generates Tourism to Knox County During FY 2018, the consortium attracted and entertained a whopping 522,992 visitors to Knox County, generating the following economic impact: $16,007,637 from tourists from surrounding counties (336,507 visitors @ $47.57 per day) $17,900,695 from tourists from beyond the region (186,485 visitors @ $95.99 per day) The above figures demonstrate that in the past year, the county appreciated a nearly $34 million return on its investment due to spending by visitors who were attracted here by consortium events and activities: that is a Return on Investment (ROI) of $90 to $1. The consortium has used its previous contracts with the county to enhance its events and activities, increase its media coverage, and promote the county as an arts and history destination. Proof of the efficacy of the county’s investment in the consortium is found within the 2019 Official Visitors and Relocation Guide recently published by Visit Knoxville. The Guide highlights the arts scene, museums, and the historic homes and provides evidence that the consortium is increasingly recognized as crucial to the county’s attractiveness to visitors. What is a Cultural Tourist? It is essential for Knox County to continue investing in attractions that appeal to the cultural tourist. While all tourists are temporary tax payers, the cultural tourist spend an average of 173% more per person than local attendees ($95.99 versus $35.16) as a result of their attendance to cultural events. In The Cultural & Heritage Traveler Study by Rosemary McCormick, the cultural traveler is defined as someone who “travels to experience the places, people, activities and things that authentically represent the past and present, including cultural, historic and natural resources.” In 2016, a national survey by Americans for the Arts revealed that 68.6% of nonresident audience members said the primary purpose of their visit to Knox County was “specifically to attend this arts/cultural event.” The audience-intercept survey also asked nonresident attendees if they would have traveled somewhere else (besides Knox County) if the event where they were surveyed had not occurred: 51.7% of nonresident attendees would have “traveled to a different community to attend a similar cultural event.” Of the 40.2% of arts attendees who were nonresidents, 32.7% reported an overnight lodging expense, contributing to the increase in Hotel Motel Tax fund collections. Seventy-eight percent of all U.S. leisure travelers participate in cultural and/or heritage activities while traveling. Cultural and heritage activities identified by travelers include: visiting historic sites (66%); attending historical re-enactments (64%); visiting art museums/galleries (54%); attending an art fair or festival (45%); and attending a professional dance, music, or opera performance (44%). Cultural tourists are more frequent leisure travelers, reporting 5.1 trips in the past twelve months versus 3.98 trips by non-cultural and heritage travelers. Twenty-four percent of leisure travelers will take a cultural and heritage trip in the next twelve months. A key element to Knox County’s future growth is its support of local cultural attractions, making Knoxville the choice for those leisure travelers. The consortium attractions within this proposal help grow the Knox County economy by attracting foreign visitors who out-stay, out-travel, and out-spend other types of international tourists. If a community fails to provide a variety of artistic and cultural experiences, it will not attract the new dollars of cultural tourists. Knox County does not want to lose discretionary spending by local residents traveling elsewhere for an arts experience: nearly one-half of local cultural attendees (41.9%) say that if the cultural event or exhibit during which they were surveyed had not happened, they would have traveled to a different community to attend a similar cultural experience. In FY 2020, cultural tourists will be drawn to Knox County by thousands of activities presented by attractions within the consortium. Each year, consortium members attract visitors from all 50 states. In 2018 alone, consortium members hosted international visitors from more than 80 countries including: Afghanistan Colombia Holland Korea Pakistan Switzerland Africa Costa Rica Honduras Latvia Peru Taiwan Argentina Croatia Hungary Lebanon Philippines Thailand Australia Czech Republic Iceland Lithuania Poland Tibet Austria Denmark India Mali Portugal Tunisia Bahamas Dominican Iraq Mexico Puerto Rico Turkey Belarus Republic Ireland Morocco Russia Uganda Belgium England Israel Netherlands Saudi Arabia Ukraine Brazil Ecuador Italy New Zealand Scotland United Arab British Columbia Finland Ivory Coast Newfoundland & Slovenia Emirates Bulgaria France Jamaica Labrador South Africa Uruguay Canada Germany Japan Nicaragua South Korea Uzbekistan Chile Greece Jordan Niger Spain Venezuela China Haiti Kenya Norway Sweden The following word cloud represents countries whose residents are most frequently attracted to Knox County by members of the consortium. Attracting tourists is important work; the potential for Knox County to reap great economic returns is tremendous and growing. In fact, Tennessee is the fastest growing state for international travel, with international travelers spending four times as much as domestic travelers (Travel & Leisure Magazine, Apr 25, 2017). The consortium’s attractions are well-practiced at welcoming visitors into Knox County where they can experience a broad array of interesting and diverse activities 365 days of the year. The Consortium Has a Positive Impact on Local Economic Development, Including Job Creation and Opportunities for Other Local Businesses The consortium employs hundreds of people full-time, contributing more than $12 million per year in wages to the area. The consortium also supports thousands of households through its periodic employment of contract workers. In all, the consortium is a $30 million plus annual industry unto itself. Consortium attractions pay their employees, purchase supplies, contract for services, and acquire assets from within Knox County. Their audiences generate event-related spending for local merchants such as restaurants, retail stores, hotels, and parking garages. In fact, Knox County’s arts and culture attractions were responsible for more than $64 million in ancillary spending by their audiences during 2018! How did they do it? Here is a breakdown of where the consortium’s audiences spend money every time they attend an art and culture event in Knox County: Residents Nonresidents Souvenirs/Snacks/Gifts $12.91 per event $24.09 per event Meals Before/After Event $16.36 $30.60 Clothing & Accessories $1.47 $3.11 Ground Transport $2.46 $7.55 Event Related Child Care $0.59 $0.48 Overnight Lodging $1.37 $30.02 Other $0.14 Total Per Person Spending $35.16 $95.99 Members of the consortium also purchase goods and services directly from local vendors. The Arts & Culture Alliance has tracked the expenditures of the consortium since 2013. In FY 2018 alone, consortium members wrote checks totaling more than $25.4 million to Knox County vendors.
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