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1615-12 Various Miami Beach Taxes collected in Miami Beach provide more than one-third of the money that funds the Greater Miami Convention & Visitors Bureau, the organization that sells Dade tourism. I This year, Miami Beach will contribute about $3 . 8 million to the bureau, 34 percent of the organization' s budget. According to conservative estimates, that will grow to $12 . 8 million, or 36 percent of the bureau ' s total budget, by 1999 . That growing contribution is giving Miami Beach increasing influence in how -- and what -- the bureau sells. Last month, for example, Miami Beach City Manager Jose Garcia-Pedrosa told Dade tourism leaders the city was going to cap its contribution to the bureau at $3 .5 million per year. To save its financial relationship with the Beach, bureau officials scrambled to address city concerns. First, the bureau agreed to underwrite $900, 000 per year in debt service on the new Miami Beach Loews convention hotel, scheduled to open in 1997 . Also, bureau management promised to add Miami Beach business leaders to its executive board and to be more vigilant in reporting its work to the Miami Beach community and political leaders. Finally, bureau president Merrett Stierheim announced the organization will be moving from Brickell Avenue. Beach leaders want the new headquarters somewhere in Miami Beach. "There is no doubt that Miami Beach is leveraging its influence, but it is a healthy process, " Stierheim said. "The bureau is a participatory organization, and it definitely helps the community as a whole to focus on some of our major assets. " Still, Miami Beach leaders remember 15 years ago when South Beach was a neglected community, associated more with Mariel refugees and crime than supermodels and nightclubs. Because neighborhoods and attractions often change, they understand that Greater Miami must be sold as one destination -- not diverse locations. "Our message here is not that we want to go this alone, because the success of Miami Beach is inextricably linked to the entire community, " said Miami Beach Commissioner Neisen Kasdin. "We 're just saying that we have a lot of creative thinkers here, and we believe it' s time for a shift in tourism leadership. " TAG: 9503070385 8 of 34 , 31 Terms mh95 SELLING PARADISE 10/16/1995 THE MIAMI HERALD Copyright (c) 1995, The Miami Herald DATE: Monday, October 16, 1995 EDITION: FINAL SECTION: BUSINESS PAGE: 26BM LENGTH: 157 lines ILLUSTRATION: color photo: view of hotel (a-ran on the cover) , car park on Ocean Drive (a) ; chart: Annual Visitors Dade SOURCE/CREDIT LINE: ANNE MONCREIFF ARRARTE Herald Business Writer MEMO: COVER STORY SELLING PARADISE WITH TOURISM VITAL TO THE DADE ECONOMY, PROMOTERS ARE SCRAMBLING TO LURE MORE VISITORS. Coming off its worst tourism year in the last decade, out- advertised by aggressive competitors and under growing pressure from its own members, the Greater Miami Convention & Visitors Bureau is facing its toughest test in years. Industry leaders want Dade' s tourism marketing organization to bring in more tourists. Political leaders want it to increase tax revenues as they scramble to replace lost federal funds. And the bureau' s own leaders are scurrying to find the best ways to spend money to attract visitors. "This is a time of intense financial pressure in cities and counties across the nation, and we are no exception, " said David Pearlson, a Miami Beach city commissioner and CVB board member. "Tourism in Dade County generates 41 percent of all taxes and always has been an easy place for politicians to look for money. The problem is, we also need to increase our advertising and promotion if we want to keep tourists coming. " Pooling advertising dollars to create a clear image and reach diverse tourist markets was the idea when the bureau was formed in 1984 . At the time, Miami ' s reputation as a drug and crime capital was destroying the tourism industry. A series of gangland-style drug-related murders had turned Miami into a cocaine capital and brought national and international headlines. A 1982 Newsweek cover story on Miami entitled Paradise Lost seemed to say it all. In addition, the 1980 Mariel boatlift had brought hundreds of thousands of refugees into the city, people in need of jobs, housing and medical care. In 1985, the tourism numbers began to turn around. Today, while tourism promoters struggle to increase funding, municipalities count on tourism tax money to fund all kinds of activities. This year, for example, Dade County is considering an increase in tourism taxes to build a new downtown arena. Miami Beach is looking at tourism money to add city services. And Homestead is using funds to build its Motorsports complex. Last year, Dade collected $49 million in direct tourist- related taxes. About $10 . 8 million of it went to the Greater Miami Convention & Visitors Bureau and $1 .5 million of that was spent on consumer advertising. There are so many special interests eyeing tourism dollars that tourism leaders are concerned that there is not enough money to promote the product. "We have taken a hard look at our budget and are moving dollars around to double the money we have for advertising and promotion, " said Merrett Stierheim, bureau president. "But we constantly are fighting the Rodney Dangerfield problem -- the industry just can't get any respect as a business in its own right that needs to be supported. " Part of the problem is the way Greater Miami collects its tourism promotion funding. Money comes from a number of sources. First, throughout most of Dade, a 2 percent bed tax is levied on all hotels and motels. A 2 percent meal and beverage tax also is levied in hotel restaurants, and, in Miami Beach, at all other eateries. In addition, Bal Harbour and Miami pay into the fund. Eleven hundred businesses, paying membership fees, round out the picture. Having that many paying members means municipalities, businesses and individuals believe they all deserve a regular say in how Dade sells its tourism. More important, it encourages municipalities to think as separate entities rather than as part of one, cohesive destination. The clearest example of the problem is the name Dade uses in its advertising. Research shows that tourists think of the destination as "Miami, " whether they mean Key Biscayne, Parrot Jungle or the beaches in Surfside. But the bureau' s members insist on having each part of the county represented. Instead of "Miami, " it ' s the more confusing "Greater Miami and the Beaches. " "Miami has to have one unified voice and message, " said Scott Berman, a hospitality analyst at Coopers & Lybrand in Miami. "The tourist flying into Miami International Airport looks down and sees Miami, not a bunch of individual little towns. " For the executives in charge of running the bureau, Dade ' s parochial concerns mean spending more time on political maneuvers than on marketing. "Having local partners is challenging, without question, " Stierheim said. "Everyone looks toward benefiting their own municipality, which can affect their perception of the importance of the whole. " And that dilutes Greater Miami ' s marketing message at a time when the area needs every marketing dollar it has -- particularly when competing destinations have such big budgets. Puerto Rico, for instance, has a $41 million ad budget. Mexico dedicates more than $60 million to advertising. In the leisure market, which makes up the bulk of Miami ' s tourism business, Caribbean destinations are stealing away a significant piece of Miami ' s potential business. Last year many Europeans, scared by a spate of tourist murders in 1993, turned to island destinations instead of Miami. And many Americans, intimidated by Miami ' s international flavor and cutting-edge nightlife, look farther north to other places on the Florida coast. In the convention market, only 12 percent of Miami' s business, Miami has had a hard time fighting a reputation for mediocre hotels and bad service. The Loew' s convention hotel, due to open in Miami Beach in 1997 , and a collective $100 million-plus investment by the hotel community in refurbishments could help change that. But limited marketing money makes it hard to change the image. The scant funds must be used to recapture and grow widely diverse markets. Unlike Greater Fort Lauderdale, which does about 80 percent of its tourism business with domestic visitors, Miami has a wider appeal. About 50 percent are domestic visitors, primarily from the Northeast in winter. The other 50 percent are foreigners, primarily during summer. Latin Americans make up about 60 percent of that business, with the majority from Argentina, Brazil and Venezuela. With so many markets and such limited funds, Miami must use its resources wisely and carefully consider its message, analysts say. "One of Miami ' s biggest problems as a destination is that it always is under a media microscope, particularly as far as crime goes, " said Berman, of Coopers & Lybrand. "And that ' s a problem because Miami is going head to head with some very well- financed destinations. " With increased pressure and criticism from competitors and contributors, the visitor' s bureau is reacting. Two weeks ago, it cut 18 people from its 92-person staff, adding $1 . 2 million to its ad budget and bringing total advertising funds to $2 .7 million. It also has cut back on office overhead and is hiring contractors to produce some of its publications. That will increase the marketing and promotional budget, which includes public relations and brochures, by 11 .2 percent in 1996, to $6 . 1 million. In addition, the bureau is cutting $350, 000 it traditionally has given the Sunny Isles Beach Resort Association and the Greater Miami Host Committee. And Stierheim is looking to replace the bureau' s luxurious, 27th floor suites on Brickell Avenue. Miami Beach officials have offered to hunt for a new location there. The city' s convention center is a proposed locale. The move, scheduled for next year, will save more than $100, 000 annually, all of which will be reallocated to marketing, Stierheim said. But the bureau will still be short of marketing funds in 1996, compared to the competition. That will be partially offset by sales efforts led by individual employees, Stierheim said. "We often are criticized when people look at our personnel costs versus our advertising expenditures, " he said. "What they don't understand is that tourism is very people-intensive business. And when you have a limited budget, your individual sales efforts take on far more importance. " 1111. While some political and tourism leaders are skeptical, they are willing to give the bureau a chance. Neisen Kasdin, a Miami Beach commissioner who has been particularly critical of bureau spending, said his constituents are pleased with the reorganization efforts. "The leadership in the bureau has responded to concerns and rolled its sleeves up to make changes, " Kasdin said. "And that is encouraging, because like it or not, all of us are handcuffed together in Dade County. " Miami Beach Commissioner Pearlson believes that is something the rest of Dade ' s municipal and tourism leaders should keep in mind. "What makes South Florida such a tremendous tourist destination is the diversity of products here, not just its fabulous beaches, " Pearlson said. "People forget that the Convention & Visitors Bureau is not a some beast we feed and send money to. The bureau is us. " The largest part of Dade ' s $14 million 1995-96 tourism budget goes for personnel costs. cutlines CHUCK FADELY / Herald Staff SOUTH BEACH APPEAL: Ocean Drive ' s prewar charm attracts visitors from around the world. KEYWORDS: STATISTIC TOURIST MI BUDGET FOREIGN TAG: 9503070864 9 of 34 , 15 Terms mh95 TOURIST BUREAU TO CUT JOBS 09/20/1995 THE MIAMI HERALD Copyright (c) 1995, The Miami Herald DATE: Wednesday, September 20, 1995 EDITION: FINAL SECTION: BUSINESS PAGE: 1C LENGTH: 52 lines SOURCE/CREDIT LINE: ANNE MONCREIFF ARRARTE Herald Business Writer TOURIST BUREAU TO CUT JOBS BUT AD BUDGET WILL JUMP Under pressure to reduce operating costs and increase marketing efforts, the Greater Miami Convention & Visitors Bureau is cutting 18 people from its 92-person staff and adding $1.2 million to its advertising budget. In a proposed budget for fiscal 1996, the bureau will spend $2 . 7 million in advertising, up from $1 .5 million in fiscal 1995 . The bureau' s total marketing effort, which includes everything from public relations to research, will climb from $4 .86 million to $5 .42 million. The fiscal year begins in October. The bureau ' s annual budget is $12 . 8 million, with about $10. 8 million coming from resort taxes. The rest comes from membership fees. The changes come as the bureau is under scrutiny for how it spends money and under pressure to increase its advertising and marketing of greater Miami. "These increases are in the best interest of the visitor industry, " said Merrett Stierheim, bureau president. "We still are woefully deficient in our advertising dollars, but this allows us to double our expenditures, and our efforts will continue to grow in the future. " The bureau plans to eliminate four positions from its marketing and tourism division, three from convention and sales, three from the finance and administration office and one part- time position from the president' s office. One part-time position in convention sales has been added. The bureau also plans to privatize its three visitor centers in Bayside, Homestead and Miami Beach. The centers, which handled 177 , 000 tourists in fiscal 1995, employ six full- time and two part-time people. If the bureau cannot find a private company to take over the centers, they will be closed, Stierheim said. In addition to offering tourist information, the private company would be able to sell tickets or other merchandise from the centers. The job cuts will save $667, 000, which will be added to the bureau ' s marketing budget. Another $70, 000 will be shifted into advertising from other departments . The bureau also is cutting $350, 000 traditionally given to the Sunny Isles Beach Resort Association and the Greater Miami Host Committee. Another $175, 000 for marketing will come from an increase in taxes on food and beverages at local hotels and restaurants . The convention bureau recently announced it would eliminate jobs and search for new offices in an effort to reduce costs. The announcement came after Miami Beach City Manager Jose Garcia-Pedrosa told tourism leaders the city plans to cap its contribution to the bureau at $3.5 million each year for the next three years. The city, which collects resort taxes covering about one- third of the bureau ' s budget, wants to use some of that money to cover city services and pay debt service on the Loews Convention Hotel, scheduled to open in 1997 . KEYWORDS: STATISTIC TOURIST DECREASE EMPLOYMENT FLORIDA ECONOMY TAG: 9503010707 13 of 34 , 5 Terms mh95 BILL ALLOWING BEACH TO USE TAXES FOR PARKING CLEARS HOUSE 05/03/1995 THE MIAMI HERALD Copyright (c) 1995, The Miami Herald DATE: Wednesday, May 3, 1995 EDITION: FINAL SECTION: LOCAL PAGE: 4B LENGTH: 38 lines SOURCE/CREDIT LINE: KAREN BRANCH And FRAN BRENNAN Herald Staff Writers DATELINE: TALLAHASSEE BILL ALLOWING BEACH TO USE TAXES FOR PARKING CLEARS HOUSE Miami Beach could take county convention development tax money and build a hotel parking garage with it, under a plan that cleared the Florida House Tuesday. Rep. Elaine Bloom, D-Miami Beach, pushed for the change at the request of Miami Beach city officials. "This permits Miami Beach to fulfill its commitment to the new convention center hotel, " said Bloom. "I expect that parking is what it will be used for. " The plan (HB 355 ) , which cleared the House on a 103-9 vote, allows Dade to spend its convention-development tax money for several things: parking, new public rights-of-way, plazas, boardwalks and "any other improvement necessary to further the success of the convention center. " The only limitation is that construction must take place within a half-mile of a major convention center. To become law, the bill must also clear the Senate -- and the governor' s desk. Miami Beach City Manager Roger Carlton said the change was good news, but would not necessarily affect financing for the garage the city plans to build near the new convention center hotel. "It ' s really in the mode of an insurance policy to back us up to make sure the parking can occur at the same time as the hotel, " Carlton said. "It may work for other parking projects in the future, not just the hotel. " Carlton said the money -- if available -- could be used as secondary sources in case the city' s primary funding fails. The 800-space garage will be partially paid for by developers of the Loews hotel and of the African-American-owned hotel also in the works. Other funding will come from tax-increment funds from the city' s redevelopment area around the convention center. TAG: 9501300731 23 of 34, 11 Terms mh95 MIAMI BEACH CONVENTION HOTEL ON HORIZON 04/30/1995 THE MIAMI HERALD Copyright (c) 1995, The Miami Herald DATE: Sunday, April 30, 1995 EDITION: FINAL SECTION: LOCAL PAGE: 4B LENGTH: 43 lines SOURCE/CREDIT LINE: FRAN BRENNAN Herald Staff Writer MIAMI BEACH CONVENTION HOTEL ON HORIZON Miami Beach and Loews Hotels have unveiled a proposed agreement for the development and management of an 830-room convention hotel -- a deal that is markedly better than the city initially expected when it awarded the hotel project -- and its millions of dollars of city incentives -- to Loews in July. If Beach commissioners approve the letter of intent at their meeting Wednesday, Loews president Jonathan Tisch said the company will begin design and financial development Thursday, and then start soliciting bookings for the anticipated opening in the fall of 1997 . The blue-and-white Deco-style hotel will tower 16 stories above the ocean on Collins Avenue and 16th Street. Its opening would be the first for a major hotel in Miami Beach in three decades, and it would be second in size only to the 1, 266-room Fontainebleau Hilton. Among changes that have improved the city' s position since the bid was awarded last year: Loews ' base rent on the city- owned property will increase every 10 years based on inflation; the city is guaranteed an 8 percent minimum return on its $20 million land investment; hotel operators will sign a long-term agreement with the Miami Beach Convention Center, committing rooms for convention events; hotel management must meet city quality and financial standards to keep the job; and Loews will foot the bill for the hotel portion of a parking garage on the site. Miami Beach will invest $29 million in the project, down $11 million from the original commitment of $40 million. The city also will put $3 million into public improvements -- boardwalk, landscaping, sidewalks -- in the area surrounding the hotel. Arthur Courshon, chairman of Jefferson Bank and head of the city' s negotiating team, called the deal a victory for the city. "What I didn' t expect was to get as good a deal as we got, " Courshon said. "The city will get its money back -- unless you have an economic disaster that will affect the whole world. " Most community members who attended Friday' s workshop at Miami Beach City Hall said they expected the hotel to revitalize the city' s convention center, which has suffered in recent years because of the lack of convenient, quality accommodations. Several critics,