Southwest, Bay TDC officials sign contract in Dallas

WEST BAY — Southwest Airlines and Bay County tourism officials met in Dallas on Wednesday to ink an agreement that will put local bed-tax muscle behind the low-cost carrier’s efforts to market the allure of local beaches.

“It’s official now,” Bay County Tourist Development Council Chairman Marty McDaniel said by phone after the signing ceremony.

The ceremony also included Airport Authority Chairman Joe Tannehill and airport Executive Director Randy Curtis.

“We are just elated to have this behind us and to now move forward with this relationship,” McDaniel said.

Dan Rowe, the TDC’s executive director, said about 25 people, including officials from The St. Joe Co., looked on as Southwest Marketing Vice President Kevin Crone signed the agreement at Southwest’s headquarters in Dallas.

“We are very excited,” said Southwest spokeswoman Christi Day, who noted the contract was the first step in what would be a long process.

“This is a day of education and it’s been a lot of fun.”

Day said airline officials will adjust flight schedules to meet the new airport’s May 18 grand opening.

“Now comes the hard work,” Rowe said, who noted that Bay County officials were meeting with the airline’s sales team Wednesday to begin drafting details for a vigorous marketing campaign.

The pact, which extends through Sept. 30, 2014, requires Southwest to provide daily non-stop flights from four cities to the new $318 million Northwest Florida Beaches International Airport near West Bay.

The cities have not yet been announced.

The agreement pledges Southwest to 525 inbound seats daily, which will be pitched to flyers with a media campaign funded by 90 percent of the roughly $2.2 million a year in Bay County bed tax money. The $2.2 million represents the fifth cent of the current 5-cent bed tax on short-term rentals in Bay County.

St. Joe, the region’s largest landowner, already has signed a separate agreement with Southwest that guarantees potential losses by the carrier of up to $14 million for the first year and $12 million the second year.

The agreements with St. Joe and the TDC were part of a complex deal between the airline and public and private groups to capture the services of the low-cost carrier, the largest domestic airline in the U.S.

The Walton County Tourist Development Council is expected to authorize a deal with Southwest similar to the Bay County agreement for a half-cent bed tax that county recently approved.