A group of local hotels plans to fight to bring tourism dollars to Red Deer. And it could have a half-million dollars in its war chest.
The Red Deer Destination Marketing Fund Committee wants to promote the city in hopes of attracting visitors and their wallets. Its member hotels — which number about 10 and represent nearly half the guest rooms in Red Deer — have been contributing one per cent of their room revenues to the cause since January.
“We’re just finalizing the marketing plan,” said John Mytz, general manager of the Red Deer Lodge Hotel & Conference Centre and chair of the committee.
That plan will detail strategies for boosting the city’s profile and bringing in business. Possibilities include marketing initiatives, funding to bring in major events, packages and special offers, attendance at industry trade shows and collaboration among local hotels, businesses and other organizations.
Mytz thinks Red Deer has lots to offer — from its parks and trail system to events like CentreFest — but many outsiders don’t realize it.
“I was one of them before I moved to Red Deer,” acknowledged the former Calgarian. “I just thought Red Deer was Gasoline Alley.
“We have to get over that kind of perception.”
Earlier this month, Western Management Consultants of Edmonton issued a report for the committee that argues the case for a Red Deer destination marketing fund. It noted that hotels here account for 18 per cent of direct visitor spending — well below the norm of 23 to 25 per cent in other cities.
One reason for this disparity might be the fact many other communities already have destination marketing funds. Edmonton’s and Calgary’s are each expected to reach $6 million next year, said the Western Management Consultants report, and even smaller Alberta cities have become big players in the hotel-funded marketing game. Lethbridge’s annual fund is about $500,000 and Medicine Hat’s is around $600,000, while Canmore is close to a half million dollars, Jasper is in the $1.6-million range and Banff comes in at approximately $3 million.
The report noted that destination marketing funds are also common in British Columbia and Saskatchewan.
“The short message is that if Red Deer wants to compete against these destinations and if Red Deer wants to grow its share of tourism business, it must bring more marketing, planning and marketing execution to the destination,” the report concluded. “It must ‘step up’ its efforts significantly or it will become less and less competitive with other destinations.”
The Red Deer Destination Marketing Fund has received $75,000 and $40,000 from the City of Red Deer and Red Deer County respectively, while hotel contributions for 2011 are expected to approach $200,000, said Mytz. Money spent could be eligible for matching grants from Travel Alberta.
“The hope is to spend about $200,000 annually and match it with Travel Alberta going forward.”
Tourism Red Deer is being contracted to help prepare and execute the marketing plan, and will also administer the fund, said Mytz.
Non-hotel businesses like restaurants would be considered for membership on an associate basis, he said, and any hotel in “the greater Red Deer area” can join.
“So we could include places like Lacombe and Sylvan Lake.”
hrichards@www.reddeeradvocate.com
— copyright Red Deer Advocate