Commissioners                                                                   Tay Yoshitani 
Chief Executive Officer 
Stephanie Bowman 
Commission Co-President 
Courtney Gregoire                               P.O. Box 1209 
Commission Co-President              Seattle, Washington 98111 
Tom Albro                                   www.portseattle.org 
Bill Bryant                                       206.787.3000 
John Creighton 
APPROVED MINUTES 
COMMISSION AFTERNOON SPECIAL MEETING JULY 22, 2014 
The Port of Seattle Commission met in a special meeting Tuesday, July 22, 2014, in the Microsoft
Pavilion  at  the  Museum  of  History  and  Industry  (MOHAI),  860  Terry  Avenue,  Seattle.
Commissioners Albro, Bowman, Bryant, Creighton, and Gregoire were present. 
1.    CALL TO ORDER 
The special meeting was called to order at 2:00 p.m. by Courtney Gregoire, Commission Co-
President. 
2.    EXECUTIVE SESSION pursuant to RCW 42.30.110 
None. 
PLEDGE OF ALLEGIANCE 
3.    SPECIAL  ORDERS  OF  BUSINESS: Roundtable  Discussion  on  Washington  State
Tourism 
In her opening remarks, Commissioner Gregoire expressed solidarity for the Washington state
communities battling wildfires, and stated that the intended purpose of the roundtable is to discuss
options for actions that can be taken to encourage the growth of Washington state's tourism
industry. 
In his opening remarks, Commissioner Creighton spoke about the Port of Seattle's participation in
the tourism business, which began with the commencement of airport operations in the 1940s and
has grown within the last 30 years to include cruise operations and involvement in tourism
promotion. He also stated that tourism is important to the job growth goals set forth in the Century
Agenda. Commissioner Creighton announced that the Twitter hashtag for the discussion would be
#growWAtourism. 
Panel One:   Investing in Tourism Promotion: The Positive Impact on Washington's
Businesses and Jobs 
Panelist(s): 
Andy Olsen, Vice President, Columbia Hospitality and Co-Vice Chair, Washington
Tourism Alliance (WTA). 
Pete Hanke, Commissioner, Port of Port Townsend. 
Ron Peck, Executive Director, Tourism Walla Walla. 

Digital recordings of the meeting proceedings and meeting materials are available online  www.portseattle.org.




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TUESDAY AFTERNOON, JULY 22, 2014 
The following presentation material(s) were submitted: 
Mr. Olsen's presentation slides. 
Mr. Hanke's presentation slides. 
Mr. Peck's presentation slides. 
Mr. Olsen spoke about efforts of the Washington Tourism Alliance (WTA) to enact a statewide
marketing plan for tourism.  House Bill 2229 would provide stable long-term funding for tourism
promotion and finds that the best source for funding a statewide marketing program is the private
sector.  Current funding models rely on lodging taxes, but this bill establishes the principle that all
sectors of the tourism industry will contribute, including lodging, food, attractions, retail, and
transportation sources. These sectors, which are the most reliant on tourism, would have majority
board membership. State agencies are directed to work with the Washington Tourism Alliance to
accomplish marketing objectives. Additional funding and board representation may involve ports,
Tribes,  wineries,  airlines,  cruise  lines,  chambers  of  commerce,  economic  development
organizations, and destination marketing organizations.   The total budget for the statewide
marketing plan is $7.5 million, which is significantly lower than neighboring states. Mr. Olsen noted
that loss of state funding to promote tourism coincided with a loss of market share to surrounding
states and British Columbia.
Commissioner Creighton requested more information about the WTA's desire to keep funding set
aside for a statewide tourism marketing plan from being swept, and whether a mechanism to
prevent this has been settled upon. Mr. Olsen replied that a way to protect the funds has not yet
been developed, but expressed that the lodging sector will not back this project if there is a
possibility that funds collected for tourism promotion may end up in the general fund. Governance
and geographic representation will play a significant role in fair allocation of funds. 
Commissioner Gregoire asked how State Parks and other non-profit groups benefitted by tourism
will  be  represented  in  determination  of  a  tourism  marketing  plan.  Mr.  Olsen  referred  to
representation on the existing WTA board that includes all areas of the state and all types of
organizations. 
Commissioner Albro asked Mr. Olsen to elaborate on port roles, beyond funding, in developing a
tourism plan. Mr. Olsen said that input and insight from ports are very important to determining
direction for marketing the tourism industry. Commissioner Albro pointed out that the 75 ports
spread through Washington state are a valuable resource, with assets and infrastructure that are
unique to Washington. Mr. Olsen agreed that port collaboration is an avenue that should be further
explored. 
Commissioner Hanke spoke about his experience operating Puget Sound Express, and the tourism
opportunities offered in Port Townsend and on the Olympic Peninsula. He noted that 20 percent of
passengers using Puget Sound Express are from the Seattle area and that 25 percent are
international customers. Cooperation with the Port of Port Townsend is important to the success of
the business. Tourism is a large part of Port Townsend's economy, and much of the Port
infrastructure is dedicated to supporting tourism. Federal and State funding to the Port, as well as

Minutes of July 22, 2015, proposed for approval on April 14, 2015.

PORT COMMISSION MEETING MINUTES                             Page 3 of 6 
TUESDAY AFTERNOON, JULY 22, 2014 
local taxes, makes investment in facilities that support tourism possible, thereby contributing back
to the local economy. 
In response to an inquiry from Commissioner Creighton about the role of  ports in tourism
promotion, Commissioner Hanke spoke about the development of the Northwest Maritime Center,
a facility constructed in the business district of Port Townsend. The Port of Port Townsend worked
with the Department of Ecology to secure a grant for cleanup of a tank farm in that area. Influence
with government agencies, according to Commissioner Hanke, is one of the most important things
Ports can do to help businesses develop tourist facilities. 
Commissioner Albro asked how significant pleasure boating is to tourism in Port Townsend, and
what opportunities can be leveraged there. Commissioner Hanke replied that Port Townsend sees
about 10,000 single-night stays a year from transient boaters. Maintenance of marinas and the
breakwater are important to the success of pleasure boat tourism. 
In response to Commissioner Gregoire's request to elaborate about the role of the Fort Worden
Public Development Authority, Commissioner Hanke clarified that the Port of Port Townsend owns
property adjacent to the Fort Worden property, but does not currently play a role in managing the
Fort Worden property. However, he expects a partnership between the Port and the Public
Development Authority to work together in the future. 
Commissioner Creighton asked Commissioner Hanke to speak about his perspective on port roles
in supporting private passenger ferry operations. Should Puget Sound ports be looking at investing
in private ferry terminals, or should they allow the market to dictate development of facilities?
Commissioner Hanke answered that revenue of private ferry operators is not high enough to
support all of the infrastructure necessary. Puget Sound Express explored a public-private
partnership with the Port of Port Townsend, but ultimately a new service was never initiated. 
In response to Commissioner Bowman, Commissioner Hanke stated that the majority of Puget
Sound Express's international customers learn about the ferry service online. 
Mr. Peck commented on tourism in Walla Walla. He noted that wine-tasting is the major driver of
visitors to Walla Walla. The destination is targeted to well-educated adults without children at
home.  Travelers tend to visit during the summer months, traveling in their personal vehicles 
(although air travel is increasing) and paying for lodging.  Many visitors return for a repeat visit,
which indicates the experience is positive. According to survey respondents, small-town ambiance
is Walla Walla's most appealing feature, followed by wine quality and dining experiences.
Mr. Peck noted the Port of Seattle can assist the growth of tourism in Walla Walla by continuing to
collaborate  with  the  tourism  sector,  supporting  growth  of  international  arrival  destinations,
representing the state in the marketplace, and supporting the development of a statewide tourism
marketing effort.   The Port of Walla Walla supports tourism by making opportunities and
infrastructure  available.  The  port  provides  small  grants  and  participates  in  efforts  such  as
wayfinding programs. Port property hosts a wine incubator program, a brewery, a coffee roaster,
and a luxury campground.

Minutes of July 22, 2015, proposed for approval on April 14, 2015.



PORT COMMISSION MEETING MINUTES                             Page 4 of 6 
TUESDAY AFTERNOON, JULY 22, 2014 
Commissioner Creighton inquired whether, considering the much higher budgets of neighboring
states, the currently projected $7.5 million budget is sufficient. The panelists concurred that this
number is just a start, and the amount will likely increase in future years as the success of the
program inspires further investment. 
Commissioner Creighton asked about the success of Alaska Airlines' Wine Flies Free program in
Walla Walla. Mr. Peck responded that the program has been renewed, and has acted as a model
for Oregon's own program. 
Commissioners Bowman and Albro remarked upon the Commission's intention to encourage
promotion of Eastern Washington destinations at the Seattle-Tacoma International Airport. 
Panel Two:   Marine Tourism and Cruising Permits: The Economic Impact and Job
Multipliers of the Recreational Boat Industry 
Panelist(s): 
Peter Schrappen, Government Affairs Director, Northwest Marine Trade Association. 
Nigel Barron, Sales and Marketing Manager, CSR Marine. 
The following presentation material(s) were submitted: 
Mr. Schrappen's presentation slides. 
Mr. Barron's presentation slides. 
Mr. Schrappen and Mr. Barron commented on the recreational boating industry.  Recreational
boating is a $4 billion industry in Washington state, supporting 28,000 regional jobs and generating
$14 million in net positive revenue. More superyachts are manufactured in Washington than all
other states combined. Annual expenses for a superyacht average $4.75 million. 
It was noted that visiting vessel revenue is hampered by tax law that only allows 60 days, for a boat
owned by an LLC, to moor in Washington before 10 percent of the vehicle's value is owed. A
marine tourism bill is currently proposed that would make Washington's regulations comparable to
other states and allow for 180 days in the state before a tax is levied. Ports can help by supporting
the marine tourism bill, helping with regulations, and advocating publicly for the recreational
boating industry.  Many job opportunities in the recreational boating industry call for skilled labor.
Typically, employees tend to be long-term, and benefits are provided.   A need exists for a
statewide marketing program for recreational boating in order to compete with British Columbia. 
Commissioner Creighton remarked that recreational boating reinforces the maritime industry as a
whole. He noted that j obs in the recreational boating industry include skills that can be easily
transferred to fishing, shipping, and other aspects of the maritime economy. 
Commissioner Albro inquired how much revenue is generated annually for the state by the 60-day
tax. Mr. Schrappen replied that the Northwest Marine Trade Association has not heard of an LLC-
owned boat ever paying this tax, but that the Department of Revenue calculates a change to the
law would result in the loss of $7.5 million annually. 

Minutes of July 22, 2015, proposed for approval on April 14, 2015.





PORT COMMISSION MEETING MINUTES                             Page 5 of 6 
TUESDAY AFTERNOON, JULY 22, 2014 
Panel Three:  Growth Opportunities: Identifying Ideas to Improve and Expand Tourism in
Washington State 
Panelist(s): 
Dan Moore, CEO, Pandion Consulting and Facilitation, and Board Member, Washington
Tourism Alliance. 
Angela Shen, CEO, Savor Seattle. 
Chris  Stone,  Vice  President,  Marketing  and  Communications,  Washington  Wine
Commission 
Linda Springmann, Vice President, Deployment Planning and Tour Marketing, Holland
America Line. 
The following presentation material(s) were submitted: 
Mr. Moore's presentation slides. 
Ms. Shen's presentation slides. 
Mr. Stone's presentation slides. 
Ms. Springmann's presentation slides. 
Dan Moore spoke about his experience working with and consulting for small adventure travel
companies. He reported that f or smaller companies, collaborating to maximize knowledge,
experience, and funds is an effective way to take advantage of marketing opportunities that
wouldn't be possible on their own. Investment by the Port of Seattle in the Washington Tourism
Alliance has been important to minimizing the impact of lost state funding for tourism promotion.
He noted it is difficult for small adventure travel to survive in this state as a year-round business. 
Chris Stone spoke about the wine industry in Washington state. Washington is the second-largest
wine producing region in the United States, and Washington production is growing.  Washington
wine has a four percent share of the national market. A study using 2011 data indicated that wine
has an $8.6 billion impact on the state, sustaining 27,000 jobs, $1.2 billion in wages, and
$238 million in taxes. More than $1 billion is spent on wine-related tourism annually. More than
2 million people visit Washington wineries per year, and wine tourism sustains more than 3,000
jobs. Only about five percent of Washington wine is exported. Export markets are being cultivated,
particularly in Canada and Asia. 
Angela Shen spoke about her experience with culinary tourism. S he noted that upscale, guided
dining experiences are a growing trend for tourists.  Most people find Savor Seattle via reviews on
Yelp and Tripadvisor.  Ten million people visit Pike Place Market per year. Connecting the market
more directly with the waterfront would increase opportunities for cruise travelers to take advantage
of the culinary attractions there. 
Linda Springmann commented on the cruise industry. She reported that m arket share for the
Alaska market has declined slightly, but because the market has grown overall, there has not been
a decrease in the total number of passengers.  In 2014, Seattle expected 178 cruise ship calls,
generating an estimated $372 million in annual business revenue and $16.6 million in state and

Minutes of July 22, 2015, proposed for approval on April 14, 2015.

PORT COMMISSION MEETING MINUTES                             Page 6 of 6 
TUESDAY AFTERNOON, JULY 22, 2014 
local taxes.  Each ship call contributes an average of $2.2 million to the local economy.  Local
venders supply food, fuel, supplies, flowers, and services to the cruise ships. 
She reported that service at the terminals to provide a good guest experience is important to the
success of the industry. Holland America cites Terminal 91 as a good model to follow when
speaking to other destinations.  A better experience could be provided to cruise travelers at the
airport via wayfinding and services.  Holland America has ships departing out of both Seattle and
Vancouver. Seattle sees the bulk of United States customers, while Vancouver serves more
international customers, including Canadians. 
Commissioner Bowman remarked that that tourism is a great source of revenue for Washington state
because much of our revenue is generated by sales tax, and we do not have a state income tax. 
Commissioner Gregoire commented on the opportunity for LGBT (lesbian/gay/bisexual/transgender) 
tourism in Washington state. 
In closing, Commissioner Creighton acknowledged the efforts of Jane Kilburn and Tay Yoshitani to
growing the Port's efforts promoting tourism. 
4.    UNANIMOUS CONSENT CALENDAR 
None. 
5.    PUBLIC TESTIMONY 
As noticed, public comment was not entertained at this meeting. 
6.    DIVISION, CORPORATE, AND COMMISSION ACTION ITEMS 
None. 
7.    STAFF BRIEFINGS 
None. 
8.    NEW BUSINESS 
None.
10.  ADJOURNMENT 
There being no further business, the special meeting was adjourned at 4:20 p.m. 

Tom Albro 
Secretary 
Minutes approved: April 14, 2015. 

Minutes of July 22, 2015, proposed for approval on April 14, 2015.