Overview of Park Board Budgets & Industry Forecasts. Kelly de Schaun, Executive Director

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1 Overview of Park Board Budgets & Industry Forecasts Kelly de Schaun, Executive Director

2 Park Board of Trustee Budget Overview Fiscal Year October 1 to September 30 of each year Composition of Operational Budgets for the City of Galveston Park Board of Trustees 14% HOT 25% Beach User Fees/ Park Admissions 61% Misc.

3 Visitor Composition & Spending An estimated 60.2% of all visitors were day trippers. Overnight Visitor Spending by Category Day Visitor Spending by Category Avg per person per day = $111 Trans 6.2% Avg per person per day = $48 Trans 12.9% Rec 16.6% Lodging 34.4% Food 28.5% Rec 27.7% Retail 18.7% Source: Tourism Economics Food 24.0% Source: Tourism Economics Retail 30.9%

4 VISITOR SPENDING Visitor Spending by Category $ millions $195 $193 $165 $ $60 $56 $19 0 Lodging Food Retail Rec Trans Second homes Source: Tourism Economics Cruise (at Port)

5 Park Board of Trustee Budget Trends $14,000,000 HOT Increase: 70% or $5,047,500 annually $12,000,000 $10,000,000 $8,000,000 $6,000,000 BUF Increase: 62% or $1,927,003 annually $4,000,000 $2,000,000 $ HOT BEACH USER FEES/ PARK ADMISSIONS MISC.

6 HOTEL OCCUPANCY TAXES

7 Brim er City State Total State of Texas Convention Center Beach Cleaning Beach Patrol Arts Funding Advertising & Promotions Nourished Beach Total Tax 0 0 Total Tax Managed by Park Board Galveston Island Hotel Occupancy Tax Brimer City State Total State of Texas Convention Center Beach Cleaning Beach Patrol Arts Funding Advertising & Promotions Nourished Beach Total Tax Total Tax Managed by Park Board

8 Value of Hotel Tax Collected $2,500, $2,000, $2,000, $1,500, $945, $1,000, Hotel Tax Collected Hotel Tax Collection Trendline $500, $

9 Factors for Hotel Occupancy Tax Growth Increased hotel RATES Increased supply in VACATION RENTALS Increased SEASONAL demand Harvey relief efforts

10 HOT FORECAST +2% Harvey Factor Marginal supply increase Summer season limited

11 Seasonal Growth Opportunities Hotel Occupancy Tax Collections by Month $325,000 $300,000 $275,000 $250,000 $225,000 $200,000 $175,000 $150,000 $125,000 $100,000 51% 102% $75,000 $50,000 $25,000

12 Strategies to Achieve Continued Growth Expand the geographic push of marketing Dominate web based marketing opportunities Speak directly with Travelers Offer customized Destination Services Position Historic Galveston Develop the Nature based product offering (Birding, Fishing & Recreational Boating) Support the creation of the National Lone Star Coastal Recreation Area Build on Holiday Winter Wonder Island campaign Leverage Cruise Market Cultivate sporting events & opportunities

13 BEACH USER FEES/ PARK ADMISSIONS

14 Beach User Fees in Texas Galveston County Annual- $5 - $10 if purchased after March Matagorda County Annual - $10 City of Corpus Christi Annual - $12 City of Port Aransas Annual - $12 Nueces County Annual $12 Village of Surfside Beach Annual - $12 Galveston Island - Seawall - $1 per hr/$8 max $25 annual Parks - $10 to $15 $50 annual (includes seawall) South Padre Island Seasonal $50 Daily Up to $13 Cameron County Annual- Up to $ Day - Up to $25 Daily - Up to $12, $6 for military Brazoria County Annual - $25 Daily - $5

15 Beach User Fees & Trends Budget 5 Year % increase Stewart Beach $857,531 $819,557 $729,468 $770,296 $946,685 $1,099,680 28% East Beach $489,261 $444,207 $397,095 $412,930 $505,568 $622,947 27% Seawolf $896,385 $871,167 $1,083,347 $1,144,339 $1,492,711 $1,410,653 57% Urban Park $506,595 $645,325 $775,706 $950,000 88% Dellanera Park $725,851 $799,176 $608,183 $680,442 $749,522 $939,495 29% Total Admissions $2,969,028 $2,934,107 $3,324,688 $3,653,332 $4,470,192 $5,022,775 69% Total Ad w/o Seawall $2,969,028 $2,934,107 $2,818,093 $3,008,007 $3,694,486 $4,072,775 37% $8 $8 Dynamic - $10 - $15 depending on day

16 Beach User Fee Growth Increased user FEES Addition of SEAWALL PARKING AMENITIES NEW BEACHES SPORTING & RECREATIONAL EVENTS Beach Sport Tournaments Fishing Tournaments Jeep Go Topless PROGRAMMING Bucket Brigade & Environmental Outreach Boots n- Eats Family Challenge Sand Castle Lessons

17 Beach User Visitation Trends , ,000 Total Cars 80,000 60,000 40,000 20, , , ,176 Stewart Beach 8 year car trend 111, ,255 92,748 77,539 74, TX City Oil 3/2014 Seaweed 6/2014 Babe s 6/2015 Seawall 3/

18 BUF FORECAST 0% No new attractions Historical activity Weather dependency

19 MISCELLANEOUS

20 Park Board Emergency Reserves Board instructed policy after Hurricane Ike Build 6 Month Emergency Reserve Consider Worst case scenario Debt Service commitment Seasonal Cash Flow needs FEMA counterpart requirements Board instructed policy after review of competitive coastal communities Maintain four (4) months of operating costs (as defined in the annual budgeting process) as a reserve for emergency contingencies. Pending Deductibles and FEMA counterpart reserve War Chest

21 Questions? Kelly de Schaun Executive Director Spencer Priest Chairman