Item No.  7c_attach_1 
Date:    August 19, 2014 1 
Port of Seattle 
Tourism Development Strategy 
Table of Contents 
Public Affairs Vision and Mission                            2 
Tourism Vision, Mission and Strategy                         2 
Background                                      3 
The Port and Century Agenda                         3 
Tourism program and economic impact                   4 
Industry organization and leadership                       4 
Collaboration and partnerships                          6 
Key strategies                                           8 
Key policy opportunities and budget                           12

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Vision and Mission Statements 
Public Affairs Department Vision: 
Through our efforts, the Port is recognized as a trusted partner, economic engine, environmental
leader and premier global gateway. 
Public Affairs Department Mission: 
We are essential partners in achieving the Port's business, community and employee objectives
by broadening public awareness and engaging stakeholders, forging relationships through
strategic communication and community outreach, technical expertise, and issue management. 
Tourism Development Vision: 
The Port's actions will add jobs through economic growth in the tourism sector as well
as related industries and businesses. 
Tourism Development Mission: 
We extend the economic impact of the Port's cruise and airport businesses by attracting
international leisure visitors to Seattle and the region, extending the stay of cruise
passengers, and encouraging a welcoming environment for all visitors. 
Tourism Development 2015  2017 Strategy: 
Leverage tourism industry relationships to achieve increased economic impact to the
region.

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Background 
The Port 

The Port's international tourism promotion program began about 30 years ago. The program has 
grown and now supports tourism promotion in 5 key
direct-flight overseas markets: Japan, China, the UK,
France and Germany. The program is operated in 
partnership with Washington Tourism Alliance and        The Port has the power to
Visit Seattle (formerly Seattle's Convention and          "expend moneys and
Visitors Bureau). The partnership jointly contracts with      conduct promotion of
international public relations firms to represent Seattle       resources and facilities in
and the state in their respective markets, by promoting      the district or general area
our destination through relationships and special          by advertising, publicizing,
promotions with traditional and online tourism industry      or otherwise distributing
businesses and travel trade, consumer and social media.     information to attract
Annual joint funding for these 5 overseas contracts is in     visitors and encourage
the range of $600,000, and this number has remained       tourist expansion", per
relatively static for the past 10 years, except for an         RCW 53.08.255. 
increase two years ago at the Port to begin work on the 
'cruise plus' program. 
Through the course of operating the tourism 
development program, the partnership makes numerous contacts throughout the state with
lodging, food service, and attractions businesses as well as local Destination Marketing
Organizations (DMOs). These entities provide hosted or discounted rooms, meals and
admittance to attractions for visiting tour operators and media, and are important partners in the
program. We capture and report on this 'in-kind' support; the metric is an indicator of the
tourism sector's support and success across the state, and it has grown every year. In 2013, this
in-kind support was in excess of $600,000, a record high. 

Century Agenda 
The overarching goal of the Port's 25-year strategy is to add 100,000 jobs through economic
growth led by the Port of Seattle. One of the four strategies of the Century Agenda is to:
Advance this region as a leading tourism destination and business gateway. Details of the
Century Agenda include making Sea-Tac the West Coast "Gateway of Choice" for international
travel, doubling the number of international flights and destinations, and doubling the economic
value of cruise traffic to Washington State. 
The linkage between the tourism development program and the port's Century Agenda is direct: 
- The mission of the tourism development group is to extend the economic impact of the 
Port's cruise and airport businesses by attracting international leisure visitors to Seattle and

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the region, extending the stay of cruise passengers, and encouraging a welcoming
environment for all visitors. 
- One job is created here at home for every 35 international visitors who visit the area,
according to the US Travel Association. 

The P ort's Tourism pro gram 

In addition to our long-standing promotion of the region as a year-round leisure destination, we
have begun to promote a "cruise-plus" program that encourages international cruise passengers
to extend their stay in the area. International visitors are "valuable", as they spend more time 
and more money on vacation than domestic travelers. These "long-haul" travelers typically have
up to 3 weeks of vacation, and often visit multiple destinations in one trip. This focus is a
successful niche for us, already generating multiple international media stories and earning a
"Port of the Year" designation from a German cruise publication. Promotion partnerships with
one cruise line (NCL) in Germany and the UK resulted in an increase of 26% and 40% bookings
through Seattle, respectively. 
Our area is featured in hundreds of individual tour products among our 5 target markets, and
media coverage for 2013 was valued at more than $27 million, a record year. (Media value is
calculated by determining how much paid advertising would cost for the equivalent number of
pages, inches or seconds/minutes in the same media.) 

Economic Impact 
Tourism is the state's fourth-largest export industry according to Gross Domestic Product (GDP)
produced, following software, aerospace and agriculture and processed food. Visitors to
Washington State in 2013 spent $17.6 billion and generated $1.13 billion in local and state tax
revenues. Travel and tourism supported more than 155,000 jobs and generated earnings 
(payroll) in excess of $5 billion in our state. International visitors represent 11% of the state's
total visitors, and they account for almost 14% of all visitor spending in Washington. According
to the US Travel Association, they spend an average of 5 times more that domestic travelers 
which makes international a very lucrative market. 

Industry organization and leadership 
The State 
The travel and tourism industry in the state has traditionally been disjointed, with large trade
associations operating in silos and little collaboration with related groups. This lack of
coordination is complicated by the fact that 80 percent of the tourism businesses in this state

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qualify as small business, such as Bed & Breakfasts, "mom & pop" restaurants, gift shops and
local attractionswhich may not be members of the larger associations. In addition, most
tourism-dependent cities and towns around the state have their own destination marketing
organizations (DMOs), and there is a statewide DMO organization as well. By far the largest
DMO in the state is Visit Seattle, with a multi-million dollar budget and a large and influential
membership. 
With the 2011 closure of the State Tourism Office, Washington Tourism Alliance was born. The
Port of Seattle was one of the 5 founding members of the WTA, which also included
representatives from lodging, restaurants, attractions and DMOs. WTA was designed to serve as
an interim organization to maintain the state tourism assets and to develop and implement a
sustainable, long-term funding model. 
The Port retained a seat on the full board, and the Port Commission voted in 2011 to award the
organization $155,000 from proceeds of the Industrial Development Corporation as a catalyst for
other businesses and governments and as a way to help keep up the momentum in promoting the
state to tourists. This funding was matched by partnerships and contributions. The Port
Commission sponsored another $50,000 in 2012 and the same amount in 2013. Boeing matched
this grant. Seven ports and 14 cities are members of the WTA, recognizing tourism's essential
role in economic development in their communities. 
The WTA was successful in having a study plan approved by the state legislature in 2014. Port 
of Seattle Commissioner John Creighton testified in support of the bill, and other ports sent
messages in support. The study directs state agencies to work with WTA to develop a funding
and collection plan for 5 tourism sectors by December 1, 2014. Enabling legislation will follow
in 2015. The initial funding goal is $7.5 million, which the plan said would be raised from
industry sector participants in roughly this proportion: Lodging, 32%; Food service, 28%;
Attractions, 13%; Retail, 19%, and Transportation, 8%. This funding plan is under study now,
and may be changed for the final legislation. It is anticipated that for the first year at this level of
funding, the statewide organization will develop a state tourism brand and begin marketing to
selected domestic and international markets. 
On a parallel course, the Port of Seattle and the Port of Walla Walla convened a "Tourism Ports
Task Force" in 2013, in order to discuss ports' potential role in statewide tourism promotion.
The Task Force has concluded that Tourism Ports should contribute to the WTA once the
enabling legislation is in place. The ports' contribution would be incremental to the WTA's
legislated collection and would potentially other sectors would also contribute, such as tribes,
wineries, etc. Work continues on the tourism ports' funding strategy in advance of the 2015
legislative session. 
Seattle 
Commissioner John Creighton serves on the advisory board of Visit Seattle, and Jane Kilburn
sits on the Visit Seattle board itself. This organization developed the Seattle Tourism
Improvement Area (TIA) in downtown Seattle. An initiative sponsored by the Seattle City
Council, it is designed to increase tourism to Seattle by advertising and promoting the city as a
premier vacation destination in external markets. The initiative allows a $2 per room per night

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surcharge to guests in certain-sized hotels in the greater downtown area. The organization also
has taken on the production of Taste Washington, an annual wine-tasting event, formerly
produced by the Washington State Wine Commission. In addition, Visit Seattle works to attract
conventions and meetings business to the city. 

Collaboration and partnership 
The Port of Seattle's tourism goal is to attract visitors to the area from targeted international
markets where we have direct air service, for general tourism and for extended stays before or
after Alaska cruises. We also have begun to research the international meetings/incentives
market, especially as regards our international conference center and cruise. Collaboration and
partnerships play a central role in our success, both at home and abroad. 
A cornerstone of the program is inviting and hosting tour operators and social media mavens to
the area to experience and promote what Seattle and Washington State have to offer their clients
or followers. Another cornerstone is inviting and hosting travel trade and consumer media to the
area in order to build visibility of our destination and set the stage for vacation destination 
"buys." Another element is targeted co-operative promotions with tour operators and other
businesses, limited advertising and social media promotions in our targeted countries. 
Across all international markets we engage in-country contractors as key partners, as they know
the industry landscape and have the important relationships in their markets. They serve as
advisors and collaborators, and are tireless promoters of the region. They identify other potential
partners on an ad-hoc basis where we have the funding to participate in a co-operative promotion
(i.e. with the media, an airline, a tour operator or a consumer business). 
Regarding the international tourism partnership, each of two partners (The Port and Visit Seattle)
pays an equal share of the retainer and related fees and expenses associated with tourism
promotion representatives in overseas markets. In the whole, each of the two partners is an equal
financial contributor. In 2014, the Port Commission approved a new approach: The Port's share
is paid through WTA, thereby including WTA in the partnershipand leveraging state matching
funds to be used to benefit the international tourism partnership. 
It has been very important to show continuity and commitment in the international markets,
regardless of our state funding issues. No w, with the WTA entering the partnership, there is
potential to enhance programs in the target markets, and to envision a new paradigm for the
future. 
The strengths of the partnership lie in its longevity and consistency in our target markets, the
relationships that have been built and maintained both abroad and here at home, and the expertise
of the staff. Seattle and the state are relatively well known in the UK, Japan and Germany 
three of the top and longest-standing markets into the stateand we are gaining traction in 
France (a relatively new market) and in the growing market of China.

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The partnership is constrained from growing market share in existing markets and from
expanding into new markets largely by budget. Other cities and states spend many multiple
times the amount we do in international markets, Washington State is losing market share, and
the competition is growing every year. Most of the threats to the partnership's success are
competitive in nature. Oregon is well-funded, even though Portland does not have the rich
international air service that Sea-Tac does. New York, California, Las Vegas, and East Coast
destinations spend millions in international markets and attract the lion's share of the first-time
visitors to the US. Our destination is a second or third visit for most international visitors, so we
scale our promotions to recognize that fact, and yet our budget is very modest. 
An optimistic expectation is that WTA will receive funding beginning mid-2015, and at that time
it will make sense for the Port to establish a direct partnership with WTA to maintain focus on
promoting the entire state to international markets and leveraging the benefits of the gateway
across the state. Visit Seattle has grown to the point that it operates independently, as many city
Destination Marketing Organizations do in California, for example. The port's interest as the
gateway to the region aligns well with the WTA's broader focus across the state.

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Key Strategies: 
1. Advance Seattle and Washington State as a desirable tourism destination in targeted
international markets with direct air service to Sea-Tac. 
2.   Increase the economic impact of the cruise business. 
3. Maintain the Port's strong leadership role in the travel and tourism industry in the 
region. 


1. Advance Seattle and Washington State as a desirable tourism destination in targeted
international markets with direct air service to Sea-Tac. 

Objective           Action                      Measurement 
Renegotiated agreement and 
Leverage tourism     Strengthen and clarify relationship,   functioning partnership. 
partnership with WTA   activities and funding through
renegotiation of the Joint Marketing
Agreement                 Contracts signed and scope
of work agreed upon. 
Contract with international firms to
represent the partnership 
Goals met, measurement
Develop, with partner and         achieved 
international rep agencies, targeted
and specific plans for each market,
with themes, goals, messages,
activities and measurement 
Solidify relationships in  Conduct regular outreach to tourism   Increased participation in 
Seattle and across the   entities across the state and engage   familiarization opportunities
state                 them in international tourism        and in-market missions
activities                        overseas

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Enhance presence in    Conduct private/public sales and     Participation by key partners 
international markets    informational mission to the UK,     and bookings/relationships
commemorating 30 years and adding  developed as a result 
value to delegation participants 
Increase in media coverage
Conduct focused outreach with     and tour product by 8% 
existing market representatives to
key media and tour industry, 
including participation in promotions
and tour product catalogs          Quantify click-through,
product sold (based on Brand
Develop promotional initiatives in    USA outcomes) 
target markets, leveraging Brand
USA when possible, budget       Successful trade presence
allowing                    with statewide partners; leads
developed 
Develop travel trade show
participation program and materials   Addition of tour product and
media launch 
Based on research, add new markets
and additional support for new direct
air service (i.e. additional city in
existing market or new country) 
Support national       Keep current on tourism issues (i.e.   Regular information shared 
tourism leaders in      Visa reform)through federal        within the port and tourism
advancing issues to     legislative program and endorse     community; action as
encourage tourism      action as appropriate             appropriate

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2. Increase the economic impact of the cruise business. 
Objective           Action                      Measurement 

Raise visibility of the    Organize and conduct familiarization  Participation by tour
destination as an add-    trips for cruise tour operators, travel   operators; increase in "cruise
on to a cruise for       agents and cruise media from        plus" products developed and
international markets    targeted international markets,      sold by tour companies and
offering visits to our terminal, aboard  cruise lines and trade media
cruise ships and options for pre- or   coverage 
post- fam trips in Seattle and the 
state 
Research cruise 'plus'   Work with Japanese representative,   Improved Seattle and 
opportunities for Japan,  tour operators and local partners to   Washington tour products,
Hong Kong markets    familiarize them with the opportunity media coverage, more
to expand their offerings in Seattle    bookings 
and around the state, especially as 
tied to cruising, and leveraging
Brand USA campaign; research
Hong Kong potential 

Engage business and    In partnership with Seaport and PA   Participation by business and 
tourism communities in  Outreach team, organize and conduct  tourism communities;
cruise opportunities     Cruise Workshop/Trade Show to     reported increase in
provide information on how to do    local/regional business 
business with the cruise industry, 
how to partner with them on pre and
post itineraries, etc., budget allowing

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3. Maintain the Port's strong leadership role in the travel and tourism industry in the
region. 

Objective            Action                       Measurement 
Position POS as strong   Maintain leadership on Washington    POS interests 
supporter of statewide   Tourism Alliance board and key      represented and input
tourism program       committees; participate in related     into strategies 
organization tourism board activities 

Actively support and advocate for     POS is member of
long-term funding for statewide      coalition to pass
tourism, aligning with other ports and  appropriate legislation;
business interests in designing       recognition as key
statewide tourism ports' contributions;  contributor and advocate
provide appropriate funding per      for tourism ports 
tourism ports 

Ensure adequate funding Develop international tourism       Approved budget is
for international tourism promotion budget that reflects and     appropriate to the
program            leverages partnership interests in     leadership role and scale
overseas markets and takes into      of the program 
account exchange rates 
Develop and administer   Provide grant funding to port and     Grants successfully 
grant program         community applicants whose projects  administered and
have a connection to POS facilities    outcomes measured per
and resources, or that would promote   each 
statewide tourism development, legal
review and budget allowing

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Key opportunities: 
Should the Port of Seattle participate in Tourism Ports funding of Washington Tourism 
Alliance? 
Should the Port of Seattle enhance its statewide international tourism promotion program
to further the Century Agenda? 
Should the Port of Seattle establish and administer a grant program whereby ports or
communities can apply for funding for programs and projects that benefit the Port of
Seattle's facilities or operations? 

Tourism Budget variables 
Budget items                   2014       2015 prop.    Difference 
International contracts              343,764     600,764      257,000 
Promotional hosting              55,000      75,000      20,000 
Advertising                    25,000      35,000       10,000 
Marketing materials               10,000      60,000       50,000 
Cruise workshop( potential new item)   ----        10,000       10,000 
Grant program (potential new item)     ----        50,000       50,000 
WTAPort funding program (potential  ----     TBD     TBD 
new item) 
Total                         433,764     830,764      397,000