MID-CITY CONVENTION AND VISITOR'S BUREAU (CVB), THE

Journal of the International Academy for Case Studies, 2008 by Ristig, Kyle

CASE DESCRIPTION

This case can be used to illustrate concepts of leading an organization with multiple issues and priorities. Secondary considerations include the need for long-range planning and the effective utilization of resources, the need for partnering with other groups and organizations to achieve desired results, and, in this case, the ability to read the political climate to reach desired goals. The case has a difficulty level of two to three and is designed to be taught in one to two class hours. Depending on the depth of detail the instructor intends to pursue, preparation time for the students will take from one to three hours.

CASE SYNOPSIS

The Mid-City Convention and Visitor's Bureau (CVB) is faced with low employee morale, relatively fixed current funding, a lethargic, patronage-style board of directors, an uninformed public, and the requirement to deal with a state legislature and disgruntled voters to increase its revenue. The manager of the CVB believes additional revenue is necessary to increase marketing efforts in order to bring in more conventions and tourists. To increase revenue, the manager of the CVB would like to raise the current room tax, which is the CVB's primary source of revenue, or institute a restaurant tax. Both the room tax increase and restaurant tax plans are opposed by associations that represent hotel/motel and restaurant owners and operators. In addition, passage of either of the taxes will require significant political maneuvering to implement. The manager of the Mid-City CVB is faced with a catch-22 situation: CVB revenue cannot increase without conventions and tourists, yet current funding levels will apparently not allow additional marketing to the conventions and tourists they are attempting to reach.

THE MID-CITY CONVENTION AND VISITOR'S BUREAU (CVB)

The Honorable Fred Gann, Messrs. John Barnes, Ricky Bartholemew, Martin Hall, Robert Fulco, and Mrs. Debbie Jones have a common problem- how to improve the operations of the MidCity Convention and Visitor's Bureau (CVB) and encourage tourism in Mid-City. The mayor of Mid-City, the Honorable Fred Gann, appoints all members of the eleven member board. He realizes that he must appoint members that are willing to work in the best interest of Mid-City but, as is the custom, he typically appoints those that will support his re-election efforts. Although there is no requirement in the Mid-City CVB charter to do so, mayors have traditionally appointed a representative from the Mid-City Hotel and Motel Association (HMA) as well as the Mid-City Restaurant Association (RA) to a two-year appointment. Although Mid-City has an active Chamber of Commerce, that organization is not represented on the board. Once seated, the board elects a president for a two-year term which is currently held by John Barnes. He is joined by Ricky Bartholemew, the president of the Mid-City Hotel and Motel Association (HMA), Debbie Jones, the president of the Mid-City Restaurant Association (RA), and Martin Hall, an outgoing small business owner. Hall is considered the "main player" on the Mid-City CVB board. Hall has served on the board for 8 years, the longest tenure of any member, and has managed to form alliances with most of the members of the board and the CVB staff. The president and members of the CVB board work with Robert Fulco, the manager of the CVB for the past five years and a permanent board member, to further the aims of the CVB. Hall, Barnes, and Fulco enjoy a congenial relationship and have known each other for a number of years.

Mid-City is a medium sized city within a four-hour drive of a major metropolitan area. It has an active regional airport, freight rail service, and is located on the interstate highway system in the Midwestern United States. The economy of Mid-City is based on agriculture and manufacturing, although one significant portion of the manufacturing sector is experiencing a decline due to deteriorating economic conditions and competition from overseas manufacturers. The Mid-City Chamber of Commerce has been aggressively pursuing new industries but their efforts to date have met with somewhat mixed results. There are several small colleges located within a two-hour drive of Mid-City, but there are few major tourist attractions in the immediate area, and sporting events are not usually supported by the local community. The climate and geography of the Mid-City area, however, allow for outdoor activities (hunting, fishing, camping, and boating) for a good portion of the year. Mid-City voters recently rejected bond proposals supported by the Mid-City Chamber of Commerce and the Mid-City CVB for the construction of a zoo and additional parks.

MID-CITY CVB EMPLOYEES AND BOARD

The Mid-City CVB is a non-profit organization with thirteen full-time employees, including the manager. The number of CVB employees is typical for a city of this size, with oversight provided by a board of directors. Employees of the CVB seem to focus on tourism and conventions, although the by-laws of the bureau charge the CVB with the responsibility of promoting the MidCity area as a desirable area to live and bringing as many meetings and visitors to the area as possible. Employee surveys appear to support this conclusion with only a few of the employees mentioning the need for community interaction. CVB employees usually work alone and the CVB does not have a formal employee development program.