Tuesday, April 23, 2024

Ending Visit Tucson Destination Marketing Agreement Sends Town Staff Into Panic Mode

The town created a mess when it dismissed Visit Tucson
In March, Town Manager Wilkins announced that the town did not renew an agreement with Visit Tucson to, among other things, provide group marketing bookings/leads for the town's two resorts: Westward Look and The El Conquistador. This ended a twelve-plus year partnership.

Wilkins violated the open meeting law by "polling" the council. Then, without a formal council vote, he terminated the relationship via a letter. He never consulted the resorts in making the decision. The day after sending the letter he learned that the resorts would have no access to Visit Tucson's group booking services; thus forcing the town into panic mode to get into a business in which they have no expertise... replacing Visit Tucson's destination marketing activities. Faced with this mess, he had no choice to bring it to the council last week to get their funding approval to move forward with his plan.

The panic happened because Wilkins made the decision behind closed doors without thinking through the implications
We learned how all this happened when the situation was discussed by the council last week and motions voted upon, in an attempt of the town to "paint over the mess" Wilkins created.
In January and February, Wilkins violated the open meeting law
...by polling individual council members in one-on-one meetings on firing Visit Tucson. Supposedly, he reviewed staff analysis of Visit Tucson performance in relation to the town. He did this in response to a strategic plan item for a Visit Tucson return on investment analysis [see panel right]. He did this in individual sessions not open to the public. From these meetings, Wilkins concluded that the council wanted him to not renew Visit Tucson's contract.
In March, Wilkins sent the letter to Visit Tucson
He sent a letter to Visit Tucson informing them of the decision without considering the immediate impact on the two resorts.
Wilkins did so without understanding the impact on the two resorts
The next day, Wilkins learned that the two Oro Valley resorts would no longer be getting group booking services from Visit Tucson. Visit Tucson by-laws only allow resorts in jurisdictions that pay fees to Visit Tucson to be members and, therefore, avail themselves of Visit Tucson services. According to Oro Valley Development Director Paul Melcher, “When we terminated our agreement with Visit Tucson, [we learned that] there wasn't an automatic extension of membership to the two resorts. We found that out after we had presented the letter to Visit Tucson."
Panic ensued
Operating in panic mode, town staff cobbled together a plan to provide destination marketing services for the two resorts. According to Melcher: “We immediately went into the mode of what are we going to do for the first 30 days once we knew there might not be an opportunity for the resorts to be part of Visit Tucson. We recognized that they needed that group booking support.”
Last week, Wilkins asked the council to "paint over the mess"
Last week, staff met at the council meeting to present the Visit Tucson ROI analysis and their plan for the town to become a Destination Marketing Organization (DMO). At that time, Wilkins explained why he did not renew the Visit Tucson contract. Referring to the staff ROI analysis:

“So, those are the thoughts that we, uh, we reviewed with, uh, with council members. But if that’s really after that, uh, there really wasn't, uh, you're from the council, uh. You know we had, again, our contract was coming- the extension of the three months was coming forward-and there wasn't a council member said “You know what: Let's put on the agenda and renew and extend.”

Council vote: 6-1 in favor of the "paint job"
In the meeting, council voted 6-1 (Councilmember Solomon voted no) to ratify to no longer use Visit Tucson, to have the town proceed with becoming a DMO, and to implement the plan. This, despite the fact, as Solomon noted, that the town is not prepared to make this work:

“Everything we see here is on paper. We're already behind the game. We would have needed this to be in place and fully operational on the day that we left Visit Tucson and it wasn't and it isn't now. This is a wish list. There is nothing functioning here. There's no website. We don't have the expertise on staff. We don't have the experience and we don't have nearly the financial capability that Visit Tucson has.”

The whole thing is bizarre
The manner in which this is being handled is amateurish and places a significant revenue stream source of the resorts and the town in jeopardy. As Solomon noted: “If this goes wrong, what are the consequences: A third of the income to the Hilton and a good part to the Westwood look and a negative 11 million dollar economic impact to the town. This may be good a year from now. But it is not ready. It is short-sighted and it can cause irreparable harm to our community and our economy.”

So why would the Wilkins do this?
Is town staff incompetent? Or is there something we have not been told? Our gut tells us it's some of both.
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