Overview of Park Board Budgets & Industry Forecasts Kelly de Schaun, Executive Director
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.
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%
VISITOR SPENDING Visitor Spending by Category $ millions 250 200 150 $195 $193 $165 $146 2016 2017 100 50 $60 $56 $19 0 Lodging Food Retail Rec Trans Second homes Source: Tourism Economics Cruise (at Port)
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 $0 2019 2016 2013 HOT BEACH USER FEES/ PARK ADMISSIONS MISC.
HOTEL OCCUPANCY TAXES
Brim er City State Total 4.000 4.000 State of Texas 0 2.000 2.125 Convention Center 0 0 4.125 0.500 0.766 1.267 Beach Cleaning 0 6 0.500 0.666 1.166 Beach Patrol 0 0 0.875 Arts Funding 0 0.875 Advertising & 3.000 Promotions 0 3.000 0.566 0.567 Nourished Beach 8 2.000 7.000 5.999 15.00 Total Tax 0 0 Total Tax Managed by 4.000 1.999 Park Board 0 4 6.00 Galveston Island Hotel Occupancy Tax Brimer City State Total State of Texas 4.0000 4.000 Convention Center 2.0000 2.1250 4.125 Beach Cleaning 0.5000 0.7666 1.267 Beach Patrol 0.5000 0.6660 1.166 Arts Funding 0.8750 0.875 Advertising & Promotions 3.0000 3.000 Nourished Beach 0.5668 0.567 Total Tax 2.0000 7.0000 5.999 15.00 Total Tax Managed by Park Board 4.0000 1.9994 6.00
Value of Hotel Tax Collected 2010-2018 $2,500,000.00 $2,000,000.00 $2,000,000.00 $1,500,000.00 $945,785.00 $1,000,000.00 Hotel Tax Collected Hotel Tax Collection Trendline $500,000.00 $- 2010 2011 2012 2013 2014 2015 2106 2017 2018
Factors for Hotel Occupancy Tax Growth Increased hotel RATES Increased supply in VACATION RENTALS Increased SEASONAL demand Harvey relief efforts
2018-2019 HOT FORECAST +2% Harvey Factor Marginal supply increase Summer season limited
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% 2013 2017 2018 $75,000 $50,000 $25,000
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
BEACH USER FEES/ PARK ADMISSIONS
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 $100 30-Day - Up to $25 Daily - Up to $12, $6 for military Brazoria County Annual - $25 Daily - $5
Beach User Fees & Trends 2013 2014 2015 2016 2017 2018 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
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
Beach User Visitation Trends 2013-2018 120,000 100,000 Total Cars 80,000 60,000 40,000 20,000 0 89,006 103,616 103,176 Stewart Beach 8 year car trend 111,051 101,255 92,748 77,539 74,718 2010 2011 2012 2013 2014 2015 2016 2017 TX City Oil 3/2014 Seaweed 6/2014 Babe s 6/2015 Seawall 3/16 2010 2011 2012 2013 2014 2015 2016 2017
2018-2019 BUF FORECAST 0% No new attractions Historical activity Weather dependency
MISCELLANEOUS
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
Questions? Kelly de Schaun Executive Director Spencer Priest Chairman