Letter to the Editor: Why I Chose ABA over NTA

 Reply to our last post from Mel Tye, Founder and CEO Tye Tours.

I did not drop my NTA membership out of protest, but because the value of the benefits no longer matched the money invested for my NTA dues. The China inbound program was only the most recent benefit that went from a benefit to a cost. My 20 years membership at NTA helped my business grow and flourish and the numerous friendships formed through NTA will always be treasured. My membership was dropped because when I was asked to justify the companies membership in both ABA and NTA I could no longer justify both memberships. When forced to chose ABA gave me better value because of superior networking opportunities at the Marketplace, superior educational opportunities, and more value for the dollars invested. If the NTA convention was run like Contact last summer, I might still be a member, but the NTA convention is not well run and has not been well run in many years. You can spin it any way you want but it is all about return on investment. NTA just doesn’t get it that when one has to stand in line to obtain scraps of food, the opportunities for networking diminish. NTA doesn’t get that if a venue is not conducive to do doing business, because of no place to sit, or noise level then the opportunity to build relationships goes away. NTA doesn’t get that lack of caffeine in the afternoon, means less productive appointments. The sponsorships that used to be at NTA have migrated to ABA because of a better return on investment. Dropping my NTA membership was not about a protest but economics.

I hear the buzz from the NH delegation,” to lets figure out how to raise funds to purchase a booth at the ABA market place.” Where at NTA I have never heard even the slightest talk about having a state booth on the floor. When I joined NTA 20 years ago there was always the opportunity to meet and get to know the industry leaders in one on one settings. I will never forget the all night discussions that used to take place the last night of the NTA convention and not wanting to leave to pack to go home. The chance to engage the industry leaders in mind expanding discussions offered validity to my own beliefs. These talks encouraged me not to follow the paths of others, but to blaze new trails. These discussions gave me the confidence to become a leader, not a follower in business and in life. These discussions became extinct at NTA as did most membership benefits of value. Every organization must grow leaders and these discussions were often the crucible where new leaders emerged.

I firmly believe that electing people to any board of directors who do not have the ability to speak in public diminishes the roll of the director. A person who can’t speak in public can not represent me or my company in a board room.

I believe NTA is chasing memberships for revenue and has forgotten about providing benefits of value to retain the current membership.

These are the reasons I dropped my NTA membership, not out protest but because of a different belief system and business model. My ability to network and do business with my colleagues at the ABA marketplace and the ability to engage in intellectual discussions during the marketplace trumps any benefit any other association can offer me. Almost all of the benefits I received as an NTA tour operator are now available through ABA.at an affordable cost.

I hope that as other members are forced to choose that egos get out out of the way and we have two separate strong industry Associations with a unified North American Travel Market place. A unified North American travel trade show makes economic sense to everyone accept those afraid of change, or loss of identity.

Those that don’t recognize that having two travel trade shows in the same month will force the members to choose the stronger show, just aren’t dealing with reality. I have made my choice and encourage others to be vocal with their view points.

BE A LEADER, BE A FRIEND, BE OF SERVICE

MEL TYE ctp/ ctis
TYE’S TOURS

ABA Report from Grapevine, TX. The Elephant in the Room Rears Its Trunk.

 by Jake Steinman, Founder and CEO,  NAJ Group, producers of www.thetouroperator.com .

2012’s Take-Aways: While NAJ’s objective at the ABA Marketplace was to introduce operators to new features on www.thetouroperator.com, we also conducted an informal survey with all 33 tour operators with whom we met and spoke with scores of suppliers and destinations during over a three day period.  In the context of the back-and-forth dialogue taking place before, during and after the daily business sessions at the Marketplace, the following emerged as the association’s key trends, issues and key highlights of  2012. On the basis of anecdotal accounts, it seemed that business increased slightly in 2011, however, operators were profoundly cautious regarding 2012.

 The Elephant in the Room—The 2013 Show Showdown:  The American Bus Association (ABA) held its annual Marketplace this year in Grapevine, Texas and the talk of the show was the January 2013 industry calendar which has the Marketplace and the NTA Annual Convention slated to take place less than a week apart, forcing attendees who had in the past attended both shows, to make some difficult choices.  Suppliers and DMOs from the western U.S. will be especially affected as the Go West Summit in 2013 will also be held in January (28-31). Lisa Simon, NTA’s executive director, tried to minimize any potential conflict, explaining to TDM that there is only a 10 percent overlap between NTA and ABA operators. True, but there is at least a 50 percent overlap among sellers.  It was clear that a majority of Marketplace delegates we spoke with want a single show and would prefer not to have to make a choice of one over the other for next January.

Though NTA is positioning the co-location of its 2013 convention with the United Motorcoach Association (UMA) Expo as an opportunity for to meet even more new buyers, suppliers and DMOs are not convinced that the UMA’s members are tour operators. 

The bottom line: NTA continues to be in a state of transition as it tries to balance its resource commitment to both domestic and international markets, while ABA remains clearly focused on domestic group travel market.  As it stands now, there is a strong likelihood that the 2013 NTA show will lose the smaller DMOs as well as several mid-level western destinations, but they may be able to pick up new travel agencies—there were several new agencies at their 2011 show two months ago in Las Vegas—who are trying to become group operators and will be appealing to the larger destinations.

The vibe at the show was generally upbeat and the energy level was palpably high as tour operators began, for the first time in three years, to report increases that indicate they may be finally emerging from the depths of the recession, however,  it was clear that there were problems with tour cancellations in 2011 and uncertainty about the economy and how the European debt crisis unfolds is a point of continuing concern.

Operator Talk—Less Than a Quarter Reports a Decline in Business: Here are the results from a survey of our appointments with 33 tour operators, of which 29 responded.  The 29 represented a cross-section of operators—large, medium and small—as well as those who focus on students, boomers and seniors. 

Changes in ABA Operator Sales

2010-2011

Sales direction vs. last year	% Change—2011 vs. 2010	Average Increase(+) Decrease(-) reported
Increase	40.0%	+12.1%
Flat	37.1%	NA
Decrease	22.%	-9.8%

Source: TheTourOperator.com

• Several student operators, reported, however, that their sales were down as they were affected by the cutbacks in school budgets that began two years ago and the fact that many parents were unable to afford to send their kids on school sponsored trips.
• Many operators reported tour cancellations as the numbers were too small to actually run the tours.  It seemed as though, from interviews, a relatively noticeable percentage of the senior operators had to cancel at least 30 percent of their tours as their clientele grew skittish with gyrations of the stock market this summer and the European debt crisis during the critical Fall quarter.
• For the first time, there seemed to be a clearer focus on Baby Boomers. For example and Charley Presley’s Salem, Ohio-based trade show company debuted a new “Boomers in Groups” (www.boomersingroups.com) show last year in Milwaukee that will be repeated in 2012.
• Operators who worked with international groups reported business up an average of 30 percent
• For Canadian operators who focus on the West Coast business was up 30 percent, while those focusing on Florida found their increase to be 15 percent, due primarily to the strong Canadian dollar.
•  Those catering to the highly coveted bank travel market commented that the wave of consolidation which swept the financial industry that closed several bank travel clubs has abated, and there is a trend to open more community banks for whom depositer relationships are a priority.    Bank travel operators are, however, have become savvy and very demanding customers looking for strong value.

IMPRESSIONS AND BUZZ FROM MARKETPLACE

Diamond Tours, the Largest Tour Operator, Continues to Take Market Share. The Wal-Mart of the motorcoach tour operator industry, Diamond Tours, with 30 points of departure (it bills itself as “the nation’s largest bus tour company dealing exclusively in motorcoach group travel”) continues to gain share, especially with the Group Leader market by offering rock bottom prices and aggressive marketing.  The 25-year-old Diamond, which started with service to Atlantic City from points along the Northeastern Corridor, has now stretched itself across the country, recently adding product in Biloxi, Miss., New Orleans, Albuquerque, the Grand Canyon and the Hoover Dam.   

Experiential Tours: Talk’s Cheap, so are tour operators. There was a great deal of hoopla about the design of “experiential” tours by DMOs, but while operators are trying to fight Diamond Tours’  commoditization of the tour market by adding unique experiential programs, they don’t want to pay for them.  The Canadian province of New Brunswick, for example, developed over 100 experiential tours and found pushback from operators over absorbing the costs. Operators want creativity and experience but they want it free. One suggested approach was for operators to offer the same basic tours at the same price and offer optional programs to some of the creative elements; in other words, they will need to learn how to upsell…or to sell.

 Sticking Their Toes into the Waters of Social Media:  We were mildly surprised when an operator during one of our appointments proudly touted its Facebook page,  and then introduced us to a young staff member sitting at the next table who was in charge of social media initiatives. The company’s Facebook page had only 200 followers and the owners were reluctant to invest in marketing to build a following.   For West Virginia-based US Tours, it was the owner’s daughter who convinced him to build a Facebook page eight months ago; he now has organically built it to over 600 fans.  Social media will primarily be used by student tour operators that will use it to communicate to build relationships with educators.

Branson Entertainers taking appointments at ABA: The motorcoach industry is increasingly being driven by live theatre, especially as successful Broadway productions take to the road and open in second- and third-tier cities. Branson, Mo., a cross between a theatrical purgatory and limbo for second-tier entertainers who are nonetheless fondly remembered by Baby Boomers, Myrtle Beach, S.C. and Pigeon Forge, Tenn., as well as many of the gaming venues are helping to expand this product. Because of the competition, it was interesting to see Motown legend Chubby Checker (now considerably slimmed down) and quasi-obscure Russian comedian Yakov Smirnoff scurrying around the hall promoting their Branson theatres in one-on-one meetings.  Smirnoff, who has had a theatre in Branson for over 25 years, sat down for his appointment with one Pennsylvania tour operator as she was still finishing the previous appointment.  Smirnoff grew a little petulant as the social niceties began to encroach on his time. “I paid $1,200 for this and I’m getting short changed,“ he told the operator.  She told him to be quiet or she would use another comedian for their Branson groups. And, with an aside, she told TDM, “He hasn’t changed his act in 15 years. “

Operators want the DMOs to serve as a free receptive tour operator (RTO). This expressed desire has emerged from an ongoing debate over the fact that ABA operators are now asking DMOs to function as RTOs because they either want to appear to design destination tours themselves or they don’t want to pay the margins to include receptive’s programs.  But a couple of DMOs in high demand destinations (one of them is Savannah, Ga.), indicated that they are hesitant to refer operators to receptive operators who, for the most part, are unwilling to report actual materialized business and room nights to a CVB, as they are evaluated based on such goal numbers. “Wait a minute here,” said a Cape Cod, Mass. representative, adding that “we will do anything for the tour operators” to get their business. The answer seems to be establishing a positive relationship with area receptives. One DMO held a luncheon for their destination’s receptives to “get rid of the wall” between them and have it evolve into a strong cooperative relationship.

 Cable shows driving niche tourism: During the past decade, any number of cable television shows featuring food favorites and offerings of destinations have become have become a popular draw for travelers. About a half-dozen are complemented by print products that, together, are driving the travel decisions of what might be called The Gormandizer Market. One wonders if the Real Housewives franchise will be the next cable television travel driver. Real Housewives of Pigeon Forge?  

The Stadium at Night Is Big and Bright, Deep in the Heart of Texas: The tour of Cowboys Stadium (the stadium is the largest domed stadium in the world, has the world’s largest column-free interior; its high definition video screen hangs from 20 yard line to 20 yard line), the home of the NFL Dallas Cowboys, and a meet-and-greet with Cowboys owner Jerry Jones was a big smash with operators. Not only did everyone get to visit the $1.3 billion home of the Dallas Cowboys; they also heard Jones regale attendees with recollections of his father’s experience in the tourism business (he owned an attraction in Arkansas). “I get it,” he told the assembled throngs who lined up to have their photos taken with him.  Jones is slowly converting the stadium into a major group tour attraction; it has already sold over 1 million admissions in the two years it has been open. Jones, to the deep consternation of his three body guards, remained for almost 90 minutes after his presentation for photo-ops.  It’s clear that he’s a people person, charming everyone he came in contact with.  

OTHER MARKETPLACE BUZZ

—Other trends: In order to keep the costs static operators  are now experimenting with three levels of meal prices and amenities for each tour they design; ++Farm to Table:  environmental/agricultural tours (especially farm-to-table products) are selling well in Frederick Maryland. Meanwhile, Sioux Falls, S.D., has a tour in which clients actually go to the farm and pick food and the meal is prepared at a local winery.

—The TAP (Travel Alliance Partners) operators we spoke with, for the most part, reported a flat year in 2011, with several of them reporting that its Guaranteed Departures Program now operates with smaller groups.  Several TAP operators have developed nostalgia- driven programs such as Free Spirit Tours’ Sue Arko’s “Spring Break” or Virginia Beach’s “USO Tour,” which feature live variety show style entertainers, reminiscent of their early years. 

Marketplace Single-Sentence Summaries: Business in Vermont overall was flat, reported a spokesperson for the state, mostly because hurricane damage occured during foliage season. ++ Dutchess County, N.Y. was down considerably because operators found customer numbers too small and had to cancel tours. ++ Baby Boomers, said operators, are not ready to admit that they want to take a bus tour. ++ -Some DMOs are reporting that operators are catering to Baby Boomers by offering more “structured”free time in the destination. ++ Voluntourism is starting to increase as part of an overall trend that seems to be combining them with eco-friendly tours that include a volunteer element. ++ -Sports tours, especially those tied to 10 kilometer races, walks and biking events are attracting Baby Boomers and operators are starting to offer them as group travel products. ++ In a survey that asked  people to choose between culinary, hands-on a farm, or bee-keeping experience, the latter was selected by over 65 percent.  ++ Flagstaff, Az., the closest gateway to the Southern Rim of the Grand Canyon, was down in domestic visitors but had an increase from international business. ++ The St. Louis CVB and Missouri in general seemed to be the most proactive in coming up with unique tour ideas, including the use of the food networks as theme for product development utilizing culinary experts. ++ Vermont offers operators Google maps that are themed. ++Mel Tye from Tye’s Top Tour and Travel in Merrimack, New Hampshire, told us that he lost 50 percent of his fall foliage tours due to the this summer’s hurricane season, but he has survived intact due to the appeal of his other programs. He also dropped his NTA membership as a form of protest because they tack on an additional $400 beyond his regular membership fee to be part of NTA’s China Inbound Program.

NTA Show Review: Girding for A Showdown with ABA next year?

TOP TRENDS AT NTA CONVENTION DEC 5-9, LAS VEGAS:

By Jake Steinman, Founder and CEO, North American Journeys, producers of www.thetouroperator.com

DMOs as new idea facilitators … appeal of smaller destinations … and the move toward merger of NTA and ABA shows  

NTA Rolls The Dice In Las Vegas. Maybe it was fitting that NTA, which attracted 1228 sellers and 323 buyers (a 3.9:1 ratio) chose to hold its annual convention in Las Vegas for the first time in its 60-year history, as many feel that the organization has placed some high stakes bets on the future with a new direction as an inbound-and-outbound show in keeping with its new tagline “Selling Travel to, within and from North America.”  Then, its leadership decided to let their bet ride when they scheduled their 2013 show (Jan. 19-23, 2013) which will be co-located with that of the United Motorcoach Association, just one week apart from the American Bus Association (ABA) Marketplace (Jan.9-13, 2013), forcing a showdown as many suppliers and DMOs and operators who attend both shows, will now only be able to attend one.

NTA SHOW BY THE NUMBERS:
	Companies	Individuals
Tour operator buyers	187	323
DMO’s	321 (11 International, 30 Canada)	387
Tour Suppliers	694	841
Total	1202	1551
Source: 2012 NTA Convention Program

• On Wednesday morning when DMO’s sat in their booths and buyers came to them, the mood was somewhat subdued.  During a walk through the show that morning it seemed as though at any point in time only about 25-30% of the booths were engaged in appointments while others, especially second and third tier DMO’s, were at their booths on their phones or Blackberrys. Traffic seemed light until Thursday when operators took their positions in the booths and activity grew more robust.

The opening icebreaker reception was scheduled from 7:45-11:30 at Maverick Helicopters’ new facility at the Boulder City airport, about 25 minutes from the Mandalay Bay, leaving nearly 90 minutes between the end of the wine reception on the floor of the show and the departure time for the buses. Attendance was spotty as a number of delegates opted instead for dinner. Those who attended were given the option of taking a helicopter tour of the Las Vegas strip at night. Chris Donnelly, founder and owner of Vermont-based Sugar Tours, took the tour and observed on his Facebook page that he felt eerily strange when he learned that a Sundance Helicopter Tours craft had crashed near the Grand Canyon the next day, killing five people.

A Global Signature: NTA has done an excellent job of branding for its new direction, as evidenced by the graphics at the convention and on its website, which are eye-popping and clearly articulate the association’s direction. And at Las Vegas, it separated international and domestic DMOs into different sections of the show floor at the Mandalay Bay Hotel & Casino. Based on discussions with delegates, operators and through participation in several seminars, as well as from conversations overheard in the aisles as delegates were waiting for business appointments, a potpourri of convention coverage notes follows.

TRENDS AND INSIGHTS:

China Inbound program finally gains traction.  The NTA China Inbound Program, now under the direction Haybina Hao, director of international development, who is both of Chinese origin and a former tour operator who worked at Western Leisure Tours in Salt Lake City,  is moving in the right direction. Not only has NTA solidified its position as the officially designated gatekeeper (by the Chinese government) for any tour operator to receive approval to sell to the Chinese market, but it has extended its outreach and education initiative on the ground in China to include road shows to several cities educating the trade. (This year the U.S. Department of Commerce, U.S. Commercial Service, in a surprise award, gave NTA a Certificate of Appreciation for Achievement in Trade for  “exceptional contributions to U.S. travel and tourism exports in the China market.” ) And at least 10 of the Chinese Inbound operators were in booths taking appointments and expanding their base of destinations.

Industry awaits second wave of Chinese visitors. In a seminar session entitled Best Practices in Serving the Chinese Traveler, panelist David Huang, owner of Chinese Host Inc. in Las Vegas told TDM that he practically had to restrain a Chinese receptive operator in the audience who openly denounced the practice of Chinese receptives’ selling impossibly priced budget tours for $40/day inclusive of meals and hotel to first time visitors.  A lively discussion ensued as to the ethics of baiting unsuspecting Chinese tourists and engaging in such activities as locking the door of retail stores visited by a tour bus until the tourists reached a certain amount of purchases.

More Travel Agencies becoming Tour Operators. New blood in the form of several large retail travel agencies such as Sarasota, Fla.-based Legendary Journeys, which sent 10 buyers and Eau Claire, Wisc.-based Holiday Vacations, with five buyers taking meetings, were emblematic of the blurring line between travel agents and operators. While these agencies were interested in meeting with international DMO’s during the first day primarily, many took meetings with U.S. suppliers as well.

.Showdown Looming between NTA and ABA may force Delegates  to make a choice. Competition with ABA will come to a head later next year, when U.S. suppliers and DMOs will have to choose which January 2013 trade show—the NTA Convention in Orlando or the ABA Marketplace in Charlotte, NC—to attend. Citing a lack of interest among its membership, NTA rejected an overture made last January by ABA’s Chairman, James Jalbert president of Portsmouth, N.H.-based C&J Trailways, to merge the two trade shows. Back channel discussions are being held to revive discussions about bringing the shows together, but there was not enough impetus at the convention to say that it is an item that has immediate possibility.  Perhaps they will work on a special discount for those attending both shows.

Operator-to-operator exchanges on the rise. The NTA-led facilitation of operator-to-operator interaction initiated proactively after 9/11, has ultimately resulted in many mid-to smaller operators assuming the role of a local receptives servicing the areas around which they are based, while filling in their brochures with tours purchased from other operators.  While this tactic has served to reduce the risk of developing tours on their own, it has made meeting with destinations and suppliers in areas where they buy from local receptives unnecessary.

Small mom and Pop Operator Companies are losing ground and closing their doors. Asked at one panel discussion by TDM about succession planning for small operators, all three panelists, from mid-sized companies, maintained they had plans in place, but small mom-and-pop operator companies are closing with greater frequency as there is no market for their companies and their offspring are not willing to put in the necessary work time. A DMO representative from the Portland CVB asked about succession plans for their customer base.  “Aren’t they all dying off?” she asked. “Some of them are dying,” replied Richard Maxcy, owner of Agri Travel Services in Lakewood, Colo., “but there is a huge group of Baby Boomers coming in behind them that will eventually turn to group travel.”  Operator strategy is to figure out how to stay alive until the year 2021, when baby boomers reach their mid-70s and 80s,  and the next boom in group travel will occur.

• What operators really want from DMOs—help in facilitating surprise experiences.  During an “Ask the Operator” session that we attended three operators (Richard Maxcy; Janet Varn, senior program manager, Academic Travel Abroad in Washington, D.C.; and Heather Huska, escorted product manager for Calgary-based Anderson Vacations) told the audience that what is truly resonating with their markets is the small interaction that tour members cannot arrange on their own.  For examples, the CVB in Yuma, Arizona helped one operator to facilitate and arrange a morning of picking oranges in a grove.  “They kept eating those oranges for the next two days,” said Huska, “and that was all they were able to talk about.  Another destination in Michigan facilitated apple picking, she added, indicating that “they want to touch it, hold it or make it.” This includes baking buns, patting horses and seeing animals, all ad hoc  and an unexpected diversion from the itinerary.  Maxcy, of Agri Travel Services, said that today’s Baby Boomers are three generations removed from the farm and want to experience it.

Operators Slow to Embrace Social Media and Web marketing Tools. Asked about social media and all two of the three operators in the same session said their clients are not only not on social media, but they don’t even like being e-ailed. They would like to eliminate their printed brochures, but clients prefer them. George A. Cooley II, domestic tourism sales manager for Destination D.C., asked for a show of hands of the DMOs and suppliers in the room who were using social media and 95 percent of the hands went up. Huska of Anderson Vacations noted that her company has a dedicated person to build and maintain a Facebook-and-Twitter program.

To request for hoteliers: More Flexible cancellation policies.  Operators want hoteliers to be more flexible with hotel cancellation policies since the booking window has moved so much closer to the departure date. They also want  hotels to host cookie-and-punch or wine-and-cheese receptions as a way to keep groups occupied while assembling room keys and delivering baggage to rooms.

Where’s NTA Management?  At the ABA Show,  Peter Pantuso, ABA’s president, was seemingly ubiquitous—all over the show floor, at functions, and schmoozing in the hallways. His seeming omnipresence even spawned a “flat Peter” spoof at the show a couple of years.  At NTA in Las Vegas, more than one person commented that Pantuso was more visible shaking hands and slapping backs than the NTA leadership staff, who were probably holed up in a series of non-stop back-to-back meetings.

Differences between NTA and ABA operators are becoming more distinct. While there is some overlap among operators who belong to both associations, in general ABA buyers tend to own motor coaches and their tour programs exist to augment their bus utilization so they are more open to new products but less committed to marketing because tours are not their primary source of revenues. NTA operators, meanwhile, rely on operating and selling tours for their entire livelihood and as such as less likely to take risks on new destinations and products that won’t sell.  It’s a little like the ham and egg metaphor:  the chicken is involved, but the pig is committed.

SUMMARY OF DEC 14 BRAND USA BOARD MEETING-

Industry to Get Preview of Brand USA Campaign Launch in March: In a meeting during which the key buzz word was “robust,” and the pre-holiday mood of its participants seemed to be the same—it is difficult, though, to determine this accurately on the basis of a call-in conference meeting in which no one sees one another—the board of directors of Brand USA and its senior staff went off with nary a question that anyone would deem pressing, although board chairman Stephen Cloobeck, chairman and CEO of Las Vegas-based Diamond Resorts International sounded skeptical about the value of a formal marketing campaign launch during ITB in Berlin on March 8, 2012.

Recalling the reveal of the organization’s new name (instead of the Corporation for Travel Promotion) and logo last month at the World Travel Market in London, Cloobeck said that the principal audience for the first announcement was only some 30 travel journalists. Board Vice Chair George Fertitta, president and CEO of New York City & Co., who has headed up the group’s marketing committee, was quick to note that ITB—everyone acknowledged that it is the world’s largest travel show—should have a higher consumer and trade presence, since the venue will present Brand USA with the opportunity to connect with potential industry partners abroad through the announcement of an actual campaign.

To make sure that the ITB event has a good sendoff, Chris Perkins, chief marketing officer, said that plans also call for a Washington D.C. based event on March 1—a week before the formal  ITB launch—to brief the U.S. industry. Several hundred industry professionals will be invited to the event, which, after it was suggested by a call-in participant, might be webcast as well

Cash on Hand: It appears as if Brand USA is inching closer to raising enough cash to ensure that 20 percent of the funds it raises (the other 80 percent can be in-kind) will be in cash in order to fully qualify for the matching funds collected by the federal government from a fee charges travelers to the U.S. from Visa Waiver Program nations. According to CEO Jim Evans, the organization has actually raised, received commitments for, or is in discussions with industry partners to secure, a total of $17 million. There will be no shortage of in-kind submissions.  Industry partners desiring to know if they have what qualifies for an in-kind contribution should contact the agency through its website (www.thebrandusa.com).  For specific questions, those interested should contact Bryan Lewis, vice president, operations and general counsel.

In County Representation—Here and Abroad:   Sometime in the first quarter of 2012, Brand USA should announce the first of its in-country representatives abroad. Paul Cerula, chief business development officer, said that nearly 40 companies in the UK and Germany submitted information in response to a request for interested parties to represent the agency. After sifting through responses, a lesser number have been sent RFPs.  After establishing a presence in the UK and German (the top two European inbound markets for the U.S.), Brand USA will also retain in-country reps in France and Italy, and most likely in the Benelux and Scandinavia as well.

Also under way is the process of reviewing resumés and conducting interviews for regional directors at offices within the U.S. Cloobeck said that the goal is to have up to six such directors, whose offices will be strategically located on the East Coast, the West Coast and points in between, although actual locations are to be determined.

Overall, the organization now has 16 staff in place, with key positions, such as vice president of communications and other slots, still open.

A Plan for All to See: Evans said that he and his staff would be conducting a day-long meeting on Dec. 16th in order to put the final touches on a business plan for the organization. This will help give those who observe the organization’s work, those who are affected by it and the members of the organization itself a “hard copy” product against which to measure results and progress. As NAJ’s INBOUND REPORT  has noted elsewhere, the Brand USA staff charge is similar to that of a group of machine manufacturers who have been building a machine while trying to produce a product at the same time.

Program Note: Beginning next year, Brand USA’s board of directors will shift to a quarterly, rather than monthly, meeting schedule. The next meeting will take place March 1, 2012 to coincide with the industry event previewing the Brand USA marketing campaign launch the following week at ITB in Berlin.

THIS WEEK’S HEADLINES:

This week’s headlines:

• Director Charged with Defrauding State through Film Tax Credits:
• New CEO Wins Reno Bureau Position By Default.   
• YPartnership To Merge With MMG Worldwide:  
• Chicago  Reveals Re-Branding and Marketing Campaign

Director Charged with Defrauding State through Film Tax Credits:  Second-tier movie director Daniel Adams has been charged in Boston municipal court with defrauding Massachusetts of $4.7 million in state tax credits by lying about the cost of two films he shot on Cape Cod.  As do many other states—in an effort to promote itself as a destination, as well as to benefit from the direct economic impact of movie making crews on location—Massachusetts allows filmmakers tax incentives. Adams received $4.7 million in credits for making “The Lightkeepers,’’ starring Richard Dreyfuss, in 2009, and “The Golden Boys’’ in 2008. He claimed $17 million in expenses associated with the films, but he apparently lied about many of the costs associated with the production—the most notable a claim that he paid the Academy Award-winning actor Richard Dreyfuss $2.5 million, when in fact he had paid him $400,000. Dreyfuss might be just as upset as the state of Massachusetts because of the revelation that he worked for such a small sum as a lead actor. To the defrauder the value is tangible for under the Massachusetts program, production companies can be reimbursed for (up to 25 percent of) eligible expenses in the form of tax credits that can be sold back to the state for cash or to other companies that can use them to offset their own taxes. For Adams, the script seems remotely familiar, as news accounts of the charges against him also note that he has a long history of financial trouble that includes two bankruptcies and several fights over bills.

New CEO Wins Reno Bureau Position By Default.  After nearly a year without a full-time leader, the Reno-Sparks CVA has announced the selection of Chris Baum, currently the senior vice president of sales and marketing (since 2006) at the Detroit Metro CVB, as its new president and CEO. A spokesman for the CVA told the Reno Gazette-Journal that Baum was one of two candidates recommended by a special task force of business and civic leaders in the Reno-Sparks area, but that the other one dropped out. The RSCVA has been without a permanent president since February 2011, when Ellen Oppenheim resigned after five years in office. The authority’s board of directors thought they had a successor when they voted 11-2 last July to hire Mark White, vice president of sales at Visit Salt Lake of Utah, but White changed his mind about his pursuit of the position and declined the job for family reasons.

 YPartnership To Merge With MMG Worldwide:  Updated: 2011-12-10T05:01:52Z .

Kansas City-based MMG Worldwide is merging with Orlando-based Ypartnership to create MMGY Global, a firm whose combined assets total $150 million and 200 employees. The new firm has offices in Denver and New York, as well as affiliate offices in other countries, including Canada, the United Kingdom and Thailand. Together, the companies together represent more than 200 travel and hospitality brands around the world. Clayton Reid will be the combined entity’s president and CEO. Don Montague, who founded MMG Worldwide in 1981, will be chairman, and Peter Yesawich—he is a well-known and frequent speaker at travel and tourism industry events—will be vice chairman. It is likely that the timing of the announcement is fortuitous, as it will enable the new firm to provide expanded international representation and reach for its clients as the new Brand USA next year launches its international marketing campaign in 10 key markets.  Founded in 1983, Ypartnership was formerly known as Yesawich, Pepperdine, Brown & Russell.

Chicago  Reveals Re-Branding and Marketing Campaign:  Getting serious about debunking its long-employed ID as America’s “Second City,” Chicago’s first-ever television spots supported by a digital campaign will launch in early January 2012 and run through early March followed by a summer campaign beginning late May and running through mid-August 2012 as the city begins a re-branding campaign targeting both domestic and international markets. The winter campaign will appear during prime time programming on network and cable stations in regional markets, as well as during marquee sporting and entertainment events, including the Academy Awards, Grammy Awards and the National Football League‘s AFC and NFC Championship games. Other components of the overall effort target regional, national and international audiences. Outreach to international markets including the highly desirable UK, Beijing and Shanghai markets via proactive public relations efforts has already proved successful and will be expanded to Mexico and Canada as early as the first quarter of 2012.