Tourism: Competitive busness in the desert Rancho Mirage is stepping up

Public Record, The, Jun 19, 2007 by Van Dijk, Cara

Although analysts say the housing market is in the doldrums for many Coachella Valley cities, tourism is still a vital piece of the area's economic landscape. Valley leaders who recognize this are addressing the trends by how they market their cities.

The city of Rancho Mirage is looking to increase its exposure by hiring a fulltime marketing manager. It's a new position for the city, which is stepping up its game as tourism dollars continue to pour into the Coachella Valley.

"We are looking to maintain and improve our competitive edge," said Curt Watts, director of economic development. "We want to protect and increase tourism revenue for the city."

Watts will oversee the new marketing manager within the economic development office. The city council voted unanimously, 5-0, to add the position on April 19, after a council-formed hotel and marketing subcommittee investigated the approach for more than a year. The position was posted shortly after that, and the deadline to apply is June 25.

"We are very pleased with the response at this point," said Watts. "We already have a strong field of applicants."

Watts says the city wants to fill the position near the end of July. City leaders are ideally looking for someone who already knows the unique desert hospitality market. The job description on the city's website says the position requires extensive knowledge of principles and practices of marketing, public relations, advertising and sales in addition to the hospitality industry, events planning, conference and exhibition planning and sporting events (i.e. golf and tennis).

The city will pay the new marketing manager between $84,456 and $102,660 a year, plus benefits. This new salary added to a proposed $335,000 for project costs, $160,000 for a newly established Kraft Nabisco agreement, $753,436 to the Desert Resorts Convention and Visitors Authority (CVA), $101,779 to the city's resort hotels for promotion, and $51,250 for consultation and miscellaneous administrative costs creates a tourism and marketing budget of about $1.5 million for 2007-2008. The city council will vote on these numbers itemized in the two-year budget on June 21, Watts said.

Most of the line items in the Rancho Mirage marketing budget were already in play before the city began its search for a marketing manager, and much of the expenses are paid through transient occupancy tax (TOT), also known as bed tax.

In comparison, Palm Desert is budgeting $1.17 million, plus an additional $1 million to the CVA, for marketing efforts planned for 2007-2008. The budget goes to its council on June 28. The La Quinta city council will review its preliminary budget, which includes $642,469 for similar marketing expenses, on June 21.

"The marketing umbrella is large," said Maria Casillas, management analyst in the city manager's office. "Tourism marketing is an important piece, but we have a lot of pieces." Casillas estimates about $92,000 will be spent on specific tourism marketing in the next fiscal year.

Putting marketing on the forefront has proven positive for La Quinta. The city started its economic development plan in 1996 with the idea to bring businesses and developers to the "Gem of the Desert." Two years after the plan was adopted the city opted to hire a marketing firm. Kiner Communications stepped in to advise the city on everything from public relations to media buys and create campaigns including "Shop, Dine, Live, Love La Quinta."

Now celebrating 25 years since its incorporation, La Quinta is continuing its marketing plan but redirecting its efforts. The original redevelopment plan called for increased marketing to businesses, developers and homebuyers.

"Now we have the businesses, the restaurants, the professional services and more hospitality venues," said Casillas. "Now our focus is shifting. We're working with the hotels and other destinations like SilverRock Golf Resort. Tourism marketing makes sense for La Quinta at this time."

Watts said it makes sense for Rancho Mirage as well. After investigating what other valley cities are doing to attract tourists and looking at their own city figures - 60-percent of the city's vital income source comes from TOT and sales tax - the hotel and marketing subcommittee concluded that the best way to expand the city's tourism reach was to hire a marketing manager.

Watts says the city saw first-hand how vital its tourism industry is when the Lodge at Rancho Mirage shut down for renovations for about a year. He says the city expects to fully recover from that hit when the Lodge reopens as the new RitzCarlton in December 2007. The $500 million, 40-acre project will be the desert's only five-star resort offering 244 guest rooms, a multi-million dollar, internationally-branded spa and a 154-unit luxury residential community.

Watts said a major function of the new marketing position will be to promote the city's four major hotels and its smaller hotels. He said the city council further expects the new manager to help the city develop a brand that helps Rancho Mirage stand out from the other desert cities. He says the main attribute the city has is its central location. If visitors want to dine and shop in Palm Springs and golf in Palm Desert or La Quinta, Rancho Mirage is a great place to stay - and spend some of those dollars as well, said Watts.