Analysis and Audit of Victoria Sport Tourism Framework

Transcription

1 REQUEST FOR PROPOSALS RFP No.: Sport - 1 Analysis and Audit of Victoria Sport Tourism Framework Issue date: December 19, 2016 Issued by: Tourism Victoria and SportHost Victoria Attention: Rob Ringma, Director of Sales Leisure, Sport & Cruise Tourism Tourism Victoria, Yates Street, Victoria, BC V8W 1L6 Submission Deadline: Friday, January 6, 2017

2 Table of Contents INTRODUCTION... 1 PURPOSE... 1 BACKGROUND... 2 ECONOMIC CONTEXT... 2 HOW THIS PROJECT WILL BE USED... 2 GENERAL TERMS OF PROPOSAL PROCESS... 3 MANDATORY REQUIREMENTS AND DELIVERABLES... 3 REFERENCE MATERIAL FOR PROPONENT S REVIEW... 4 PROPONENT REQUIREMENTS... 4 PROPOSAL PRESENTATION... 4 PROPONENT ASSESSMENT CRITERIA... 4 TIMELINES... 5 CONTACT INFORMATION... 5 PROJECT AUTHORITY... 5 APPENDIX A... 6 ORGANIZATIONAL REVIEW: SPORTHOST VICTORIA... 6 ORGANIZATIONAL REVIEW: TOURISM VICTORIA... 8

3 Request for Proposals - Analysis and Audit of Victoria Sport Tourism Framework INTRODUCTION Currently SportHost Victoria works in partnership with Tourism Victoria and other partners in efforts to promote and secure sport related events and activities that will result in sport tourism opportunities and the industry s economic benefits for the Greater Victoria region. The two organizations are committed to working together to strengthen Greater Victoria s competitiveness in this arena, with each organization bringing different and complementary sets of skills to the table. In addition, Sporthost Victoria is looking at future succession planning and Tourism Victoria is simultaneously looking to increasing its investment in sports tourism, systems and processes which make the timing of this analysis ideal. Discussions between the organizations have signalled an opportunity and willingness to explore innovative approaches to developing and supporting the sport tourism environment in the region. In response, Tourism Victoria and SportHost Victoria are seeking an independent thirdparty research or management consulting firm to a) conduct a sport audit on the capabilities and synergies of the two organizations, and b) uncover opportunities to strengthen relationships, clarify operations and achieve potential efficiencies that will lead to overall stronger destination performance in the sport tourism arena. Purpose Tourism Victoria and SportHost Victoria are seeking an independent third-party research or management consulting firm to: Analyze the current effectiveness of the sports tourism model in the greater Victoria region; identify the capabilities and synergies of the two organizations; conduct a comprehensive analysis of the current sport hosting framework in Victoria; uncover opportunities to strengthen relationships with other sport tourism partners and potential funding partners; identify ways to clarify operations and achieve potential efficiencies that will lead to overall stronger destination performance in the sport tourism arena; and develop recommendations to increase the region s competitiveness and success in sport tourism. The proponent will develop a management report complete with recommendations, and will submit this to Tourism Victoria and SportHost by February 28 th, 2017.

4 BACKGROUND The following section provides some initial context as to the background and current structure of both organizations as relates to the sport tourism market. Economic Context Sport tourism drives business into the Greater Victoria region, accounting for an annual average of $117.5 million in direct spending in our community. Sport-Event related visitors spend millions of dollars on accommodation, rental vehicles, fuel, restaurants, meals, tourism products, facilities, and catering, clothing and audio-visual services. The impact of recreational and leisure sport visitors that travel to the region for activities such as hiking, biking, golfing, fishing, and water sports is not included in the above total but needs to be recognized and considered in the marketing of the region as a major sport destination. Over the past 10 years, sport and recreation infrastructure investment in the Capital region has provided substantial economic stimulation. More than $30 million from provincial funds and the private sector have been invested in sport and recreation facilities such as the Pacific Institute for Sport Excellence (PISE), Panorama Recreation Centre, Cedar Hill Recreation Centre and Gordon Head Recreation Centre. Add to this the $77 million deployed to build the University of Victoria s Centre for Athletics, Recreation and Special Abilities and the injection of an additional $30 million from the City of Langford in the new YMCA and additional sport and recreation infrastructure. Ecoasis, the owners of Bear Mountain is investing a significant amount towards golf course improvements, a premier tennis complex with eight clay courts, the Bear Mountain Bike Park and the launch of The Hub, home of the Canadian National Mountain Bike Team. All of this investment has been crucial to attracting events, programs and world-class athletes to Victoria. As a result, our city is now the proud home to eight National Sport Centres of Excellence. The $117.5 million in estimated annual generated revenue is a direct result of Victoria hosting over 100 major regional, provincial, national and international sport-related events annually. Business Context However in spite of the success the region has achieved, we still continue to lose a great number of bids on major events to competitive cities, communities and regions primarily as a result of the multi-municipal governance of the Greater Victoria region and its sport related facilities. Victoria has received feedback that our collective bids are not strong, our systems are not integrated and our approval processes can be awkward. The current model is not working efficiently and some major victories such as the World Junior Hockey Championships were led by other organizations outside of Victoria. It is strongly felt that the time for strategic action is now.

5 *Please see Appendix A for more detailed organizational reviews of both SportHost Victoria and Tourism Victoria HOW THIS PROJECT WILL BE USED advise Tourism Victoria and Sporthost Victoria on the effectiveness of the current business model inform Tourism Victoria and SportHost on best practises in other sport tourism models and jurisdictions and existing gaps inform Tourism Victoria and Sporthost Victoria on best practises in bidding models for sports tourism and existing gaps recommend ways we can fill those gaps to bring more sport tourism to Victoria GENERAL TERMS OF PROPOSAL PROCESS Mandatory Requirements and Deliverables This RFP and process will include, but not necessarily be limited to the following actions: attend project kick-off meeting with SportHost Victoria and Tourism Victoria as the organizer of this RFP in order to identify relevant contacts and to determine a basic roadmap for this project; conduct an analysis and audit of the current sport tourism framework in the Greater Victoria region; review best practices and models in other sport tourism environments or regions (including organizational structure, governance and funding) across BC as well as in Victoria s geographic vicinity (e.g. the Seattle Sports Commission) to help ensure we remain competitive with competitive regions on sport opportunities; conduct an organizational review of both SportHost and Tourism Victoria as pertains to the sport tourism ecosystem, including: o strengths and weaknesses o sponsorship and funding streams o identifying duplication in efforts and other inefficiencies or overlaps o gap and opportunity analysis complete a matrix analysis between both organizations of each organizations members, capacity, skills, technologies and financial strength; research the federal and provincial sport tourism guidelines and requirements (see links in Reference Material for Proponent s Review section for a starting point) and compare these to the current Victoria sport host structure, providing an analysis of gaps and opportunities;

6 conduct a review of the current Victoria sport host funding model and provide recommendations on the structure required to be most conducive to leveraging external funding resources e.g. viasport; interview key SportHost supporters and stakeholders, and conduct an analysis to determine gaps and opportunities with other organizations and jurisdictions, including but not limited to the following examples: o PISE o Tourism Victoria o Bear Mountain o UVIC o City of Langford o Sport Facility Operators o Key Hotel suppliers o Key Transportation suppliers conduct interviews with relevant Tourism Victoria and SportHost board members (as directed by SportHost and Tourism Victoria) to gather their understanding of the current sport host structure and how it could develop; provide at minimum three recommendations and best practice models to develop the future direction of sport tourism bidding, business development and promotion in the region; and present project findings. Reference Material for Proponent s Review Proponents should refer to the following links as a starting point for research: Webinars/Guides/Tourism-Business-Essentials-Guides/TBE-Guide-Sport-Tourism- Jun2013_2.pdf.aspx Proponent Requirements Demonstrated experience delivering similar projects for municipalities and/or business organizations including project references. Relevant qualifications and experience (qualitative market research, program evaluation). Please provide qualifications with the bid.

7 Proposal Presentation Assigned personnel will be responsible for presenting findings in the most relevant and appropriate manner. PROPONENT ASSESSMENT CRITERIA Criteria Points Demonstrated understanding of the requirements 15 Approach 20 Proponent experience conducting similar studies 15 Assigned personnel experience conducting similar studies 15 Price Lowest price / bid price x 35 Maximum Budget Available: $10,000

8 TIMELINES January 6, 2017: RFP closes January 12, 2017: Decision and contracting January 18, 2017: Kick-off meeting or teleconference February 28th, 2017: Presentation of findings (meeting or teleconference) CONTACT INFORMATION Tourism Victoria Rob Ringma, Director of Sales Leisure, Sport & Cruise Tourism Phone: (direct) (mobile) Project Authority: Paul Nursey, President and CEO SportHost Victoria Hugh MacDonald, Executive Director Phone: (250) Project Authority: John Juricic, SportHost Victoria - Board Chair Please send RFP Responses, either in person, or via to: Attention: Rob Ringma, Director of Sales Leisure, Sport & Cruise Tourism Tourism Victoria, Yates Street, Victoria, BC V8W 1L6 rob.ringma@tourismvictoria.com Submission Deadline: Friday, January 6, 2017

9 APPENDIX A Organizational Review: SportHost Victoria SportHost Victoria is a registered non-profit society. The purposes of the society are: to promote Greater Victoria as a host of world-class sport; to provide a forum through which Greater Victoria residents and businesses can participate; and to serve as a liaison between event organizers and city / government / community agencies. SportHost s vision is to be a North American leader in fostering partnerships to attract sport-related events to enhance the economy and quality of life in Greater Victoria. SportHost s mission is to represent the region of Greater Victoria as a sport tourism destination. The concept to establish an agency to promote the Victoria region as a host of world-class sport was originally put forward by the Commonwealth Centre for Sport Development (CCSD). The CCSD approached Tourism Victoria to gain a commitment in principle to create a community partnership to fund and support what was to be called the Greater Victoria Sport Tourism Partnership, which is branded and operates as SportHost Victoria. After the CCSD was rebranded as PacificSport Victoria, PacificSport with Tourism Victoria and the City of Victoria founded SportHost Victoria and registered the partnership under the Societies Act as the Greater Victoria SportHost Association, March 12, Other community members joined the partnership, led by The University of Victoria, Royal Roads University and Camosun College. Major corporate members include suppliers to sport event organizers such as hotels, transportation companies and attractions. More recently, the municipalities of Saanich and Langford have joined the partnership; the Bear Mountain Resort increased its membership support to become a Gold Level Partner along with PISE, Tourism Victoria and the City of Langford. Operating Budget SportHost is completely funded by a membership-based model approach. SportHost s 2016 operating budget of $132,250 is generated through the sale of membership packages to partners that recognize the connection between sport and economic development. The partnership / memberships opportunities according to SportHost Victoria s website are as follows:

10 1. Gold Partners: Consideration: $25,000 annually 2. Silver Partners: Consideration: $10,000 annually 3. Bronze Partners: Consideration: $2,500 annually 4. Associate Partners: Consideration: $250 annually 38 local members (listed at: Marketing and Sales SportHost Victoria maintains a website at where potential sport event groups can learn more about Victoria as a sport destination. This includes information on sport facilities, partnerships and things to do in the Greater Victoria region. The website also provides an avenue for potential groups to contact SportHost Victoria for additional or more detailed information on sport venues, partnership and sponsorship opportunities, and the city in general.

11 From time to time SportHost Victoria produces marketing materials such as short videos and collateral. In fiscal 2016, SportHost spent $11,248 on advertising and promotion expenses related to marketing. From a sales and event-development perspective, SportHost employs an executive director. This role is responsible for acquiring and supporting sport event opportunities in addition to other duties as executive director, including attending the Canadian Sport Congress in Ottawa each year to promote Victoria to national sport organizations. Travel and convention expenses (sales activities) totaled approximately $6000 in fiscal The executive director maintains a running list of potential event bids and opportunities, and shares this with directors and partners on a regular basis. Organizational Structure and Employees SportHost Victoria is not-for-profit society incorporated under the Society Act of BC and as such has a board of directors and several subcommittees that govern and lead the organization. Currently the organization has 20 volunteer directors and committees that oversee executive and finance, marketing and membership, and sport and business development. From an employee perspective, SportHost has one executive director and two part-time support staff: Hugh McDonald executive director full-time Keith Bridge marketing and business development part-time Saskia Bjornson office and admin assistance part-time Operational staffing represented $78,143 in expenses in fiscal 2016, representing a 51% labour ratio compared to revenues. Business Continuity and Succession It is clear that the current executive director has been the driving force of the SportHost organization since its inception in Up until 2015, this role was responsible for all lines of the business as the sole employee. SportHost does not maintain a CRM database nor does it have a clear succession strategy in place. Organizational Review: Tourism Victoria Tourism Victoria is the official destination marketing organization of Greater Victoria. Tourism Victoria collaborates with the local hotel community to provide partnership investment to select

12 sport events that support mutual business objectives by drawing repeat off-season visits and room-night stays in Greater Victoria. Since 2001, Tourism Victoria has supported SportHost Victoria as a founding member and has contributed $25,000 yearly to the organization. In addition to its membership contribution, Tourism Victoria vets potential sport event bids from SportHost and proposes events that align with the overall strategy of its Destination Marketing Fund (DMF) committee for additional funding requests. Approved sport tourism events are then either supported with additional Tourism Victoria core budget resources or granted additional resources from DMF funds to support the bid process and secure the event. In some cases, it is a combination of both Tourism Victoria core budget and DMF support. Operating Budget Tourism Victoria s business plan budgets for a $7.8 million integrated budget for This budget is a combination of the following revenue streams: Membership revenues o Tourism Victoria has over 900 member businesses in the Greater Victoria region and beyond Provincially legislated MRDT hotel tax o 2.8% tax from all hotel room-night stays in Victoria and Saanich Destination Marketing Fund (DMF) o 1% additional, optional tax from all hotel room-night stays for opted-in group of local hotels Visitor Centre Sales o Commissioned sales of member-related products at Tourism Victoria Visitor Information Centre located downtown The Tourism Victoria 2017 budget also provides strong support for sport tourism, SportHost Victoria and key sport events. In total, Tourism Victoria contributes to an initial annual investment of over $100,000 to sport and event support. This figure is drawn from Tourism Victoria s core budget, and is exclusive of potential incremental DMF funds gained. Marketing and Sales A core mandate of Tourism Victoria is to market and sell all aspects of the Greater Victoria region to tourism customers in key geographical feeder markets. The organization accomplishes this in numerous ways: Maintaining a complex and in-depth destination-focused website Execution of over 12 focused marketing campaigns throughout the calendar year Award-winning in-house marketing and production team Digital asset bank with a wide variety of updated photo and video content Digital marketing expertise with a focus on click-rate optimization and conversion

13 Proactive maintenance of numerous social media and digital channels Sophisticated inbound marketing platform and capability to modernize sales approach and lead generation Content marketing department to develop and broadcast generated content Integrated media relations department with entrenched influencer relationships in all key markets In-house research and market analytics capacity and sophisticated data sets Corporate communications and public relations International market development leisure sales team Fully integrated CRM platform that houses all member, consumer, customer, media and trade contacts Leisure travel trade sales team that works to develop B2B relationships in key source geographical markets Organizational Structure and Employees In 2016 Tourism Victoria dedicated a director-level position to work in conjunction with SportHost to help support efforts in the sport tourism arena. As mentioned, Tourism Victoria s sport tourism department is supported with an annual investment of approximately $100,000 and is focused on the following areas: Directing efforts and resources toward high-profile sport events that help build shoulder season occupancy and positive exposure for the destination Working with facility partners in Victoria, Saanich and Langford Working with local Destination Marketing Fund (DMF) stakeholders to increase support for key events that align to destination sports strategy The director oversees the leisure sales team, which consists of two market development managers, and is able to tap into the other departments of Tourism Victoria s business for marketing and additional support as needed. These departments include: Membership services Marketing Digital content and social media marketing PR and communications Research and analytics Business Continuity and Succession Tourism Victoria is operated as a going concern and as such is structured to continue operations until such time as its funding model does not provide sufficient resources for business operation. With a new funding relationship established with the Province of British Columbia and the City of Victoria beginning January 2017, Tourism Victoria has funding certainty established.