Item 5b Memo

PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA
Item No.       5b
Date of Meeting   January 13, 2009
DATE:   January 8, 2009 
TO:     Tay Yoshitani, Chief Executive Officer
FROM:   Jane L. Kilburn, Director Public Affairs
SUBJECT: Marketing Agreement with the Seattle's Convention and Visitors Bureau 
REQUESTED ACTION 
Request the Port Commission to authorize the Chief Executive Officer 1) to execute and
administer a sole source one-year Marketing Agreement with the Seattle's Convention
and Visitors Bureau at a cost not to exceed $225,031 in 2009, and 2) to authorize the
Chief Executive Officer to renew the Marketing Agreement for three one-year periods for
a total estimated cost not-to-exceed amount of $900,124.
SYNOPSIS 
This memo requests authorization for the Chief Executive officer to execute and administer a
sole source one-year to Marketing Agreement with the Seattle Convention & Visitors Bureau
(SCVB) with three one-year options to renew. The Legal Department has determined that this
agreement is not a personal service agreement and may be presented as a sole source contract
without the need for an exception to the requirements of RCW 53.19. SCVB is uniquely
positioned to carry out the marketing required by the Port and is the foundation for all aspects of
Seattle's and regional international tourism sales and media development. It is a key link to the
private sector in developing and implementing international tourism programs in key markets.
SCVB is instrumental in coordinating the sales and marketing objectives of a partnership,
comprised of the SCVB, the Port of Seattle (POS), and Washington State Tourism (WST).
During the past 25 years, the SCVB has been instrumental in interviewing and procuring third
party representation in Japan, France, and China and has executed marketing and sales strategies
in those cities. SCVB is a paying member of the partnership and also acts as a contractor in
performing duties outlined in the scope of work.

BACKGROUND AND JUSTIFICATION FOR SOLE SOURCE CONTRACT 
SCVB is a non-profit economic development agency which is responsible for competitively
marketing Seattle and King County as a destination for all types of tourism. SCVB develops and
implements a broad range of marketing programs designed to increase domestic and international

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer
January 8, 2009
Page 2 of 3 
travel to Seattle and King County. It is the only entity in the region equipped to provide the level
of service required by the Port to develop and manage our international tourism programs. The
Port's international tourism program works in partnership with the SCVB and WST to develop
and oversee a strategy to bring international visitors to the region and channel these visitors to or
through Port facilities (the airport, the cruise terminals, the international conference center, etc.).
Utilizing SCVB's 1,000 plus membership base provides the Port with a direct link between the
tourism industry and private partners. The partnership includes private sector companies
committed to international tourism. Promotional efforts for the Port focus on five overseas
tourism markets with the most potential benefit to the region: Japan, United Kingdom, France,
Germany and China. The Port benefits from SCVB's marketing programs by gaining direct
access to the international visitor market and to SCVB's expertise in the tourism sector.
The tourism program works cooperatively with the SCVB and WST to develop and implement
cohesive tourism strategies in all markets as well as to track success. Building awareness and
firmly establishing our region as a strongly desired destination for all markets is the core
component of our joint strategy.
SCOPE OF WORK 
The scope of work that SCVB will perform includes the following: supervision of joint tourism
efforts by the partnership in France, Japan and China; participation and support of the
partnership's programs in the United Kingdom and Germany. In addition, SCVB will provide
assistance and promotional support in the continued effort to publicize Seattle as a cruise
destination in both domestic and international markets. The SCVB will provide tourism
expertise and act as a liaison to private and public sectors in generating support for agreed upon
programs.
SIGNIFICANCE OF INTERNATIONAL TOURISM  Why should the Port be involved? 
The Port has a vested interest in international tourism. The Port continues to build, lease, and
operate important tourism infrastructure, such as cruise ship terminals, the airport and an
international conference center. Investment in inbound international tourism promotion results
in the further success and profitability of the Port's infrastructure.
In addition, the Port is part of a larger state and local community with its own international
tourism interests (hotels, attractions, restaurants, and other communities in the State). The Port is
an essential catalyst for these other entities. Our role is to bring together the State and other
interested parties and to facilitate the efforts of others into a cohesive international tourism effort
for our region. Among the most important reasons for a strong international tourism efforts are:
International tourism creates jobs, locally and regionally.
International tourism creates tax revenues.

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer
January 8, 2009
Page 3 of 3 

Tourism is the fastest growing industry in the United States and it provides for new job
opportunities.
Contrary to popular belief, not all tourism jobs are low-paying. There are many family
wage earning jobs in the industry. Tourism is the great incubator for entrepreneurs,
ranging from wine vintners (almost 600 wineries now in Washington State) to hotel
owners, to small shop owners. The industry provides entry level jobs as well as career
paths to top management.
STRATEGIC OBJECTIVES 
International tourism supports the Port's strategic objective of developing economic
opportunities in the region. Travel and tourism is one of the largest industries in Washington
State in terms of revenues. Travel spending in the state was $14.8 billion in 2007, a 7.1 percent
increase over 2006. Travel spending generated 149,800 jobs with earnings of $4.2 billion in
2007. Earnings increased by 5.3 percent over 2006 and employment increased by 2.2 percent.
Travel spending generated $973 million in state and local taxes which represents a 6.7 percent
increase over 2006. Visitor spending in King County accounted for 43 percent of all visitors
spending in the state in 2007.
FINANCIAL IMPLICATIONS 
The requested $225,031 for 2009 is included in the approved 2009 Public Affairs budget; this
amount represents a reduction of $9,669 from the 2008 budget. The total estimated cost of this
Marketing Agreement between 2009  1212 if all three options are exercised is $900,124.

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