Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
8a
ACTION ITEM
Date of Meeting
July 28, 2020
DATE: July 10, 2020
TO: Stephen P. Metruck, Executive Director
FROM: Dave McFadden, Managing Director, Economic Development Division
Ron Peck, Director, Tourism Development Department
SUBJECT: Tourism Recovery Initiative Supporting Region’s Economic Vitality
Amount of this request: $1.5 Million
Total estimated project cost: $1.5 Million
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute a $1.5 million joint marketing
agreement with Washington Tourism Alliance (WTA), a non-profit agency, to promote tourism recovery.
This agreement, funded by the Port property tax levy, will help regenerate travel to Seattle and
Washington state in the U.S.A. and Canada for a period of up to 15 months. Staff is also requesting that
the commission determine a competitive process is not appropriate or cost effective and exempt this
contract from a competitive process consistent with RCW 53.19.020.
EXECUTIVE SUMMARY
The visitor industry is a vital and significant segment of King County and Washington state’s economy, as
well being important to the Port of Seattle, because SEA International airport is the primary gateway for
air visitation for our state.
Washington State has experienced a dramatic decline in tourism in 2020 due to the global pandemic.
COVID-19 has acutely damaged employment in Washington State’s travel sector. Through the end of
April, job losses within the leisure and hospitality sector represented 42 percent of all job losses in the
state. From March 1 through May 23, hotel room revenue declined by 72 percent. For the week ending
June 28, 2020, traffic at SEA International Airport averaged 15,500 passengers through TSA (a 75%
reduction over 2019).
To rebuild tourism and generate consumer confidence around travel, the Port will partner with the WTA
to implement a multifaceted marketing program over the next 15 months. These initiatives will aid in
COMMISSION AGENDA –Action Item No. 8a Page 2 of 5
Meeting Date: July 28, 2020
Template revised September 22, 2016.
revitalizing tourism throughout Washington State and will positively impact the Port of Seattle (POS) as
the primary air gateway for all of Washington.
BACKGROUND
A report commissioned by the WTA highlights the industry’s significant economic impacts:
• Logged double-digit growth during the past five years, generating $10.9 billion in direct state GDP
in 2019 alone.
• Travel and tourism support 5.1% of all jobs in Washington.
• Before the industry’s near total shut down in 2020 due to COVID-19, visitor volume increased by
2.0 percent last year to a total of 110 million visitors.
• On average, visitors spent $60 million per day in Washington State last year.
• State and local taxes, generated by direct visitor spending, tallied nearly $2.4 billion in 2019.
• Each household in Washington would need to be taxed an additional $1,065 to replace the visitor
taxes received by state and local governments last year
The Coronavirus pandemic has had a debilitating effect on Washington’s tourism economy. Specifically:
• April Job losses in leisure and hospitality represented 42% of all lost employment
• March 01 – May 31, traveler spending declined by $3.8B over 2019
• June 28 weekly SEA airport volume average 15,500, down 75%
• June 28 weekly King County hotel revenue down 78.3%, hotel occupancy - average 31.9%
Supporting the revitalization of tourism throughout Washington State will enhance economic renewal and
will positively impact the Port of Seattle as the primary air gateway for all of Washington. WTA is the
official destination marketing organization (DMO) for Washington State and is charged with stimulating
economic impact via a statewide marketing program. Working in collaboration with WTA to increase
visitor expenditures throughout Washington state will positively impact the Port of Seattle’s travel assets,
bring important travel service and hospitality jobs back and aid in bringing this important sector of
Washington State’s economy out of the doldrums.
A travel industry paradigm shift has and will impact tourism on a national and regional level. Tourism
marketing research and travel studies reflect that as a result of the Covid-19 pandemic, “local drive
markets” or traveling within home state areas will return quicker followed gradually by domestic air travel.
Until perceived safety and health protocols in place, slower rebounding segments of the travel economy
will be international air traffic and the cruise industry.
The goal of this agreement is to work collaboratively and maximize travel volume to Washington state
that improves economic impact, tax revenue and support industry jobs.
COMMISSION AGENDA –Action Item No. 8a Page 3 of 5
Meeting Date: July 28, 2020
Template revised September 22, 2016.
Objectives include:
• Increase year-over-year travel volume to Washington by 50 percent; expenditures and tax
contributions by 40 percent; state leisure/hospitality/entertainment sector employment by 40
percent (April 15, 2021; Tourism Economics reporting; DOL jobs report)
• Increase SEA year-over-year passenger volume by 60 percent (April 15, 2021; POS statistics)
• Solidify consumer confidence in Washington as a relatively safe and accessible travel destination
(February 1, 2021; national consumer sentiment and social listening reports)
• Create compelling and competitive state brand image for the leisure travel marketplace
(December 2020; launch and reception of WTA brand platform)
• Increase positive state travel media coverage by 40 percent (February 2021; circulation and
equivalent advertising value)
• Increase Washington tour product in key through retail systems by 15 percent (TBD)
• Operate ongoing, robust destination development program for Washington’s rural, small and
sensitive communities (November 2020 full activation; comprehensive deployment of WTA
statewide assessment, outreach and grant program)
Strategies for implementation include:
• Promote Diversity, equity and inclusion. Through all marketing and communication programs,
foster the social and cultural benefits of travel: understanding and respect between people and
cultures, human rights, and justice for all.
• Implement near-term in-state marketing campaigns. Stimulate in-state travel in accordance with
phase 2 guidelines/restrictions, and while consumer sentiment favors short trips and auto travel
• Focus on North American air markets. Allocate majority of marketing investment on U.S./Canada
air markets and Northwest drive/feeder markets as non-essential travel restrictions ease
• Effectively brand the destination. Create a compelling leisure travel brand and platform for all
marketing programs.
• Promote public health guidelines. Work in concert with public health and policymakers to ensure
safe and responsible travel while advocating for clear travel guidelines and resumption of safe
and sanctioned travel activity.
• Get America traveling again. Promote consumer confidence through industry coalitions and
campaigns. Help re-define the endeavor of travel: essential; responsible; safe; common bind of
people, cultures and understanding; part of the American dream.
• Bolster the state’s travel and tourism industry. Stabilize the industry through federal and state
advocacy, destination development, crisis planning, business mitigation, and industry education
and mobilization.
• Market the geographic diversity of Washington. Focus marketing programs on the wealth of
state destinations and experiences from east to west, rural to urban; according to WTA’s charter,
target rural and underserved communities, outdoor adventure, recreation, public lands and
waters.
The proposed POS – WTA Tourism Marketing Recovery Program that includes objectives, strategies,
program elements and deliverables is also included in this memo as an attachment.
COMMISSION AGENDA –Action Item No. 8a Page 4 of 5
Meeting Date: July 28, 2020
Template revised September 22, 2016.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1) Do not propose an agreement with WTA.
Pros:
• Reduces specific budget request by up to $1,500,000 a year.
Cons:
• It would eliminate the possibility of leveraging the collaborative efforts with WTA reenergize
travel and tourism to Washington state. I
• It would erode the Port’s leading role as a tourism advocate and economic asset for our region
• This is not the recommended alternative.
Alternative 2) - Work with WTA to implement a tourism promotion plan will increase visitor travel and
positively impact SEA International airport as the major gateway for Washington. Total dollar amount,
$1.5 million.
Pros:
• No other organization has the ability, breadth or capability to deliver a national tourism marketing
project for all of Washington state.
• By aligning with WTA, the POS will be leveraging both organizations funding which will allow for
a stronger marketing plan
• WTA and POS are currently working collaboratively on a number of marketing projects (SEA
airport spotlight advertising, tourism grants, travel trade shows) and this project will be an
effective continuation of cooperatively bringing additional tourism dollars to Washington.
Cons:
• Not applicable as no other organization has the ability, breadth or capability to deliver a national
tourism marketing project for all of Washington state.
This is the recommended alternative.
COMMISSION AGENDA –Action Item No. 8a Page 5 of 5
Meeting Date: July 28, 2020
Template revised September 22, 2016.
FINANCIAL IMPLICATIONS $1.5 Million
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
$1,500,000
$1,500,000
Original estimate
$0
$0
$0
AUTHORIZATION
Previous authorizations
0
0
0
Current request for authorization
0
0
0
Total authorizations, including this request
0
0
0
Remaining amount to be authorized
$0
$1,500,000
$1,500,000
Funding for this initiative will come from the Port of Seattle property tax levy.
ATTACHMENTS TO THIS REQUEST
1) Attached POS – WTA Proposed Plan
2) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
June 23, 2020, Commission Meeting. Motion 2020-17 was approved and included $1.5 million to support
tourism promotion vital to the Port’s economic sustainability and the region’s economic vitality.
