Call to Order and Roll Call
The 4th meeting of the Interim Joint Committee on Economic Development and Tourism was held on Thursday, September 18, 2014, at 1:00 PM, in the Meeting House, Shaker Village of Pleasant Hill, Harrodsburg. Senator Alice Forgy Kerr, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator Alice Forgy Kerr, Co-Chair; Senators Perry B. Clark, Carroll Gibson, Denise Harper Angel, Ernie Harris, Jimmy Higdon, Dennis Parrett, and Mike Wilson; Representatives Julie Raque Adams, Tim Couch, Jim DeCesare, Mike Denham, Jeffery Donohue, Myron Dossett, Jim Gooch Jr., Mike Harmon, James Kay, Dennis Keene, Kim King, Brian Linder, Tom McKee, Terry Mills, David Osborne, Ruth Ann Palumbo, John Short, Arnold Simpson, John Will Stacy, Fitz Steele, Wilson Stone, and Russell Webber.
Guests: Maynard Crossland, President and Chief Executive Officer (CEO), Jennifer Broadwater, Vice President of Marketing, and Jill Malusky, Director of Visitor Engagement, Shaker Village of Pleasant Hill; Mary Quinn Ramer, Vice President, Marketing, Lexington Convention and Visitors Bureau.
LRC Staff: John Buckner and Dawn Johnson.
Approval of Minutes
A motion by Representative Simpson and second by Senator Harris to approve the minutes of the August 21, 2014, meeting carried by voice vote.
Shaker Village of Pleasant Hill, Changes in Response to Business and Marketing Conditions
Maynard Crossland, President and CEO of Shaker Village of Pleasant Hill, explained recent changes to redefine promotional efforts at the village. Mr. Crossland acknowledged the dedication of those who worked to restore Shaker Village and the not-for-profit organization that currently manages its 3,000 acres and 34 historic structures. In the 1960s, the site was restored and opened to the public with traditional cooking and costumed interpreters who performed Shaker-era craft making. With declining attendance due to a volatile marketplace and cultural shift, this model no longer served the needs of Shaker Village. To survive, the demands of a new marketplace must be met by creating an engaging experience for a new generation.
Jennifer Broadwater, Vice President of Marketing and Visitor Engagement, said the leadership team spent many hours considering changes to long-time institutional traditions. The team determined it was more important to put the needs of today’s audiences ahead of organizational customs. In doing this, Shaker Village merged the best of the old with the unexpected. The Pleasant Hill Shaker story has not changed, but the manner in which it is told has. The leadership team chose a nontraditional marketing firm to take an inventive approach to rebranding Shaker Village and its collection of Shaker architecture, furniture, documents, and artifacts. Through targeted branding and marketing communications, the introduction of engaging events, and the development of a new visitor engagement plan, the new strategy was implemented. To reach more children and families, the team developed interesting programs and activities and presented them in fun and approachable ways, and broadened the opportunities for loyalists and empty-nesters seeking tranquility in a natural setting. New events were created, such as the Chamber Music Festival of the Bluegrass, an antiques show and crafts fair, the Harvest Fest, and smaller events targeting specific niches.
Ms. Broadwater explained the new visitor engagement plan developed to transition Shaker Village’s daily programming from a traditional demonstration-based interpretation of Shaker history to an engaging participatory model through new seasonal programs and activities. Shaker Village has begun to retell the Shaker story through media outlets, social media, online, and new events. These efforts are paying off with increased occupancy rates, admissions, and dining sales.
Jill Malusky, Director of Visitor Engagement, said that no other site like Shaker Village exists that combines historic structures, exhibitions, demonstrations and collections, a nature preserve, farm and garden, along with dining, sleeping accommodations and retail sales. She explained the $5 after 5:00 PM program with extended hours that has piqued visitor interest, Top to Bottom tours giving visitors a behind the scenes look at Shaker Village, and Coffee with the Collections which gives participants a look at rarely seen manuscripts and historic items.
Ms. Malusky noted that the Village’s Historic Centre, the Preserve and the Farm and Garden staff are collaborating to development new programs. The Village is collaborating with outside partners to share expertise, staff, and resources to maximize reduced budgets to provide high quality programs.
Responding to Senator Parrett’s questions, Mr. Crossland said the Village leases approximately 800 acres to a local farmer. Other income includes an endowment, revenues from ticket sales, dining, the inn, and rental of the paddleboat.
Responding to Representative DeCesare’s question, Mr. Crossland said the Village participates in the Kentucky Proud program through dining room purchases.
Representative McKee said a weekend at Shaker Village is a special experience. He complimented Shaker Village staff on their innovative ideas that keep Kentucky proud of the historical landmark.
Responding to Senator Kerr’s suggestion regarding an outdoor Shaker Village play or musical, Mr. Crossland said one goal is to fill the 72 hotel rooms by becoming a destination for visitors to participate in a variety of activities at the village. The site hosted a chamber musical event on Memorial Day.
Senator Gibson recommended that state tourist destinations have a pre-visit ticket purchasing system for those passing through the area who may not plan to make an extended stay. Mr. Crossland said one of the biggest problems for the Village is that it is difficult for tourists to get to the destination. He suggested improved coordination between tourism and the Transportation Cabinet.
Importance of Public/Private Partnerships and Cooperative Programming
Mary Quinn Ramer, Vice President of Marketing with the Lexington Convention and Visitors Bureau, said with the assistance of the Kentucky Department of Travel and Tourism, the 15 regional counties work closely together. They meet monthly about tourism issues and collaborate on marketing initiatives to help meet their needs. Participants share information on local events and attractions in a regional marketing partnership effort. Money from the Tourism Marketing Incentive Fund helps fund items like bluegrassky.com, a one-stop-shop for touring needs in central Kentucky, and a two-page advertising spread in US Airways Inflight Magazine. By working together, they can become a multi-night destination. Ms. Ramer said Lexington and Shaker Village have worked together on several projects such as hosting journalists and familiarization trips for tour operators. Shaker Village is well represented in the new downtown Lexington visitors’ center.
Ms. Ramer reviewed an advertising campaign featuring Lexington in northern markets, titled “Southern Starts Here.” It is important to engage journalists to feature the area. She said the area including Lexington, Shaker Village, and the Bourbon Trail has had many positive stories portraying Kentucky as a world-class destination. However, these marketing initiatives are in jeopardy. Due to a spending authority issue preventing usage, $9 million was swept from a restricted fund of revenues received through the one percent transient room tax. Tourism is not only an investment for tourism issues but also an investment in education. Statistically, tourism provides over $1 billion in tax revenues, is worth $12.5 billion to the state’s economy, and employs 175,000 Kentuckians. Kentucky’s greatest assets, scenic wonders, welcoming people, unique regional culture, history, and heritage cannot be outsourced. People have to visit to experience what Kentucky has to offer, which will result in jobs and growth.
Senator Higdon noted that, through a joint effort, he and Representative Kim King were able to get a transportation study initiated on Highway 68.
Responding to Representative Simpson’s question, Ms. Ramer said that, to track effectiveness of advertising, tourism data is studied through reader response cards in print and digital tracking online.
Responding to Representative Simpson’s question, Ms. Ramer said the lost transient room tax funds would have been used for digital advertising and print initiatives. She would like to work with the General Assembly to remove the cap to access the funds.
Responding to Representative Mill’s inquiry, Mr. Crossland said the 800 acres of leased land is planted with corn and soybeans and is used for cattle. The nature preserve has 1,200 acres and the Village occupies 1,000 acres, and the landing at the Kentucky River is part of the property as well. He has been working with Kentucky Fish and Wildlife to demonstrate how restoration of prairie grasses and the nature preserve can coexist with modern farming techniques.
Mr. Crossland said the goal of Shaker Village is to become a major tourism destination for the state. To achieve this, the Village has worked with various state and local agencies and constituents. The Village is the largest Shaker site in the United States. There is much restoration needed, therefore the newly established Development Office has launched a multi-million dollar campaign to raise the funds needed for restoration. He asked for the Commonwealth’s support through funding mechanisms such as setting aside a portion of the Kentucky State Historic Preservation Tax Credit, as was recently done to support some for-profit ventures or requesting a line item appropriation for targeted projects.
Mr. Crossland said there is a significant need for appropriate transportation tourism signage because the site is very difficult to find. Promoting tourism by county affiliation rather than destination is an inefficient system that limits options for rural counties.
Mr. Crossland suggested legislative clean-up language that ties alcohol beverage licenses to the physical boundaries of properties. This prevents the Village from serving spirits on its popular 112-passenger paddlewheel boat.
There being no further business, the meeting adjourned at 1:45 PM.