Template revised January 10, 2019.

COMMISSION

AGENDA MEMORANDUM

Item No. 9a

ACTION ITEM Date of Meeting January 28, 2025

DATE: November 1, 2024

TO: Stephen P. Metruck, Executive Director

FROM: Nick Leonti, Director of Tourism Development

SUBJECT: International Tourism Marketing Initiative

Amount of this request: $1,500,000

Total estimated project cost:

$1,500,000

ACTION REQUESTED

Request Commission authorization for the Executive Director to execute a joint marketing

agreement with State of Washington Tourism (SWT), a state government agency, to promote

international tourism to Seattle and Washington state in selected international markets for three

years (one year followed by two optional years) at the rate of $500,000 per year for a total not

to exceed $1,500,000 and 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. This memorandum addresses Commissioner questions raised during the

December 10, 2024, business meeting.

EXECUTIVE SUMMARY

The economic development goal for tourism marketing is to ensure that, when visitors come via

SEA, they are spending as much time and money as possible with our local businesses and

communities. This is not done by aiming to increase overall visitation, but rather by strategically

attracting travelers who deliver more economic, cultural and civic benefits when they visit.

This agreement strengthens the Port's efforts to aligned with Century Agenda Goal #2: "to

advance this region as a leading tourism destination."

The funds for this agreement are allocated in the Tourism budget for international marketing and

do not represent an increase in bottom-line year-over-year spending. Instead, this partnership

with State of Washington Tourism (SWT) is a strategic collaboration that maximizes the

effectiveness of that budget.

COMMISSION AGENDA – Action Item 9a Page 2 of 6

Meeting Date: January 28, 2025

Template revised June 27, 2019 (Diversity in Contracting).

The majority of the funds in this agreement are designated to maintain a global network of in-

market representation agencies that broaden the reach and impact of our initiatives. The

agreement ensures that the Port’s responsible tourism principles of elevating community voices,

supporting underserved regions, preventing overtourism, and routing tourism where it is needed

are prioritized across all markets.

Funds spent on international marketing yield substantial returns for the region, contributing to

job creation, increasing tax revenues, supporting businesses, and positively affecting the

livelihoods of our residents.

We aim to showcase the region and SEA as a welcoming, progressive gateway to the U.S.,

targeting visitors who align with Washington's commitment to environmental stewardship,

inclusion, and responsible travel.

This agreement increases the ROI on the Port’s tourism initiatives and is a seminal effort to create

a strong state office of tourism which would benefit all Washingtonians.

REQUEST FOR COMPETITION WAIVER

As Washington’s official destination marketing organization, State of Washington Tourism (SWT)

provides unique services and global positioning for the outlined international marketing

activities. The Port and SWT have worked collaboratively to promote the region on a global scale

with previous Port-funded initiatives (e.g., 2020’s Tourism Recovery Initiative and 2023’s

International Tourism Marketing Agreement) which have helped establish the region’s tourism

brand. SWT maintains the Port’s inclusion in priorities for international agency work and there is

no other statewide organization that can collaborate on this scale. Due to this unique

relationship, we are requesting a competition waiver for this initiative.

JUSTIFICATION

This initiative supports Goal 2 of the Port’s Century Agenda: Advance this region as a leading

tourism destination and business gateway. Through our international marketing efforts, we will

increase brand awareness of our region, drive visitor-related spending, and strengthen SEA

Airport’s global positioning as a premier US gateway.

The initiative will be guided by the Port’s EDI and responsible travel commitments by routing

tourism to the communities, businesses and resources that need it as we create a positive

economic cycle that benefits all Washingtonians.

DETAILS

International Marketing & Management Strategy and Plan

All of the marketing and management efforts supported by this agreement are guided by our

commitment to responsible, inclusive and eco-conscious travel. This means attracting visitors

who want a cultural connection to the region and seek out authentic experiences in a responsible

COMMISSION AGENDA – Action Item 9a Page 3 of 6

Meeting Date: January 28, 2025

Template revised June 27, 2019 (Diversity in Contracting).

way. It also means visitors staying longer, spending more, visiting during less busy times,

exploring urban and rural areas, and generating a sustained positive economic and cycle.

Tourism marketing is not advertising, but a strategic communication plan including sales

missions, familiarization tours, tour operator co-ops, trade shows, trainings, media relations,

content creation, and more as a vehicle to promote and manage tourism in an effective and

impactful manner.

The global agencies that SWT partners with provide crucial channels to reach our global audience

and steer the narrative around our destination. They allow us to maintain contact with industry

leaders, create content, represent our interests at trade shows and industry events, identify new

opportunities, provide insights, pitch stories, recruit and vet fam and press tour attendees, and

more.

As the three regional organizations with international reach, The Port, SWT and Visit Seattle are

able to do for our businesses, communities, and destinations what they are not able to do on

their own. We have regular meetings to discuss strategies, identify opportunities, and align

priorities that help us elevate our destination and route tourism where it is needed and wanted.

This agreement with SWT enhances the Port’s efforts and ensures that Port priorities are kept

top-of-mind.

The Port is currently represented via the SWT agreement with in-market agencies in:

 Japan

 South Korea

 United Kingdom/Ireland

 Germany

 France/Benelux

 Australia

Budget

The previous version of this agreement provided $800k over two years. This new version expands

the scope and increases the contract to $1.5 million over three years – a $100k per year increase

created by strategic budget allocation to better achieve Port goals, not by increasing the

department’s bottom line.

These marketing efforts include business-to-business marketing through tour operator co-ops,

paid content, in-market activations, trainings, trade shows, familiarization tour hosting, media

trips, and more.

Industrywide ROI on tourism marketing has shown that the more you put in, the more your

communities get out. Tourism Economics, a leading travel industry research firm, reports that for

every dollar invested in marketing, SWT generates $29 in visitor spending and $3 in state and

local tax revenue.

COMMISSION AGENDA – Action Item 9a Page 4 of 6

Meeting Date: January 28, 2025

Template revised June 27, 2019 (Diversity in Contracting).

This financial commitment is seminal for SWT and is not intended to continue beyond 2027.

The anticipated annual budget breakdown is included here:

Scope of Work

This agreement supports the shared priorities of the Port and SWT related to responsible travel,

eco-tourism, amplifying community voices and promoting tourism that enriches our destination

economically, culturally and environmentally.

The work conducted under this agreement will aim to:

 Reflect and amplify the diversity and inclusivity of Washington throughout the entire

program of work.

 Prioritize increasing the economic impact of the Port-owned businesses by increasing

length of stay and amount of spend, especially during non-peak times.

 Build relationships that create loyalty among travel trade, media and other tourism

producers to build a sustained positive economic cycle.

 Inspire targeted visitors who align with responsible travel values to choose Washington

as their vacation destination and SEA as their gateway.

 Reduce overtourism at traditionally busy locations and during traditionally busy times.

 Establish the partnership as the expert source for quality, reliable content on a global

scale to share information and steer destination narrative.

 Support the full diversity of Washington destinations and experiences to make the

tourism economy work for all Washingtonians.

 Strengthen partnerships with valued thought partners including tribes, businesses,

residents and tourism stakeholders.

 Maintain a global presence to keep Washington at top-of-mind for the travel trade and

consumers.

 Attract international visitors who will contribute to sustaining Washington’s

infrastructure and resources.

In-Market Representation $235,000

Trade Shows. Sales Missions $125,000

B2B Travel Trade Activity (newsletters, co-ops,

events, trainings, content creation, etc.)

$95,000

Fam Trips/Promo Hosting $25,000

Campaigns/Co-ops $20,000

TOTAL $500,000

COMMISSION AGENDA – Action Item 9a Page 5 of 6

Meeting Date: January 28, 2025

Template revised June 27, 2019 (Diversity in Contracting).

ALTERNATIVES AND IMPLICATIONS CONSIDERED

Alternative 1) Do not approve an agreement with SWT.

Pros:

 Reduces specific budget request by up to $1,500,000

Cons:

 Eliminates Port presence with in-market agencies in all currently activated inbound travel

markets including the UK/Ireland, Germany, France/Benelux, Japan, South Korea and

Australia.

 Eliminates the possibility of leveraging the collaborative efforts with SWT to drive visitor-

related economic impact to Washington state.

 Erodes the Port’s leading role as a tourism advocate and economic asset for our region

 Negatively impacts visitor-related economic impact to the region, reduces tourism-

related tax revenues generated, and provides lessened support for local businesses and

communities.

This is not the recommended alternative.

Alternative 2) - Work with SWT to implement a tourism promotion plan will increase

international visitor travel spending and positively impact diverse communities statewide while

positioning SEA as a premier US gateway. Total dollar amount, $1,500,000.

Pros:

 Supports a positive cycle of tourism impact that drives increased spending, generates tax

revenues that support infrastructure development, and bolsters local businesses.

 Provides channel to manage tourism to route visitors when and where they are needed.

 No other organization has the ability, breadth or capability to deliver a national tourism

marketing project for all of Washington state.

 By aligning with SWT, the POS will be leveraging both organizations’ funding which will

allow for a stronger marketing plan and increased ROI.

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.

FINANCIAL IMPLICATIONS

$1,500,000 ($500,000 per year funded by the tax levy)

COMMISSION AGENDA – Action Item 9a Page 6 of 6

Meeting Date: January 28, 2025

Template revised June 27, 2019 (Diversity in Contracting).

Cost Estimate

/Authorization Summary Capital

Expense

Total

COST ESTIMATE

Original estimate $0

$1,500,000

AUTHORIZATION

Previous authorizations 0

Current request for authorization 0

Total authorizations, including this request 0

Remaining amount to be authorized $0

$1,500,000

ATTACHMENTS TO THIS REQUEST

(1) Presentation slides

PREVIOUS COMMISSION ACTIONS OR BRIEFINGS

December 10, 2024 – Presentation given regarding new international marketing CAT III contract

in collaboration with State of Washington Tourism.

March 14, 2023 – The Commission authorized $800k International Tourism Marketing Agreement

with State of Washington Tourism and provided the competition exception.

July 28, 2020 – The Commission authorized $1.5 million joint marketing agreement with

Washington Tourism Alliance to promote tourism recovery.