Phillip Jones ended his 15-year run as president and CEO of VisitDallas on Wednesday as he and the board of the city’s official destination marketing organization (DMO) jointly announced they had reached an agreement by which he would depart.
The departure comes in the wake of a city audit, released in January, that some Dallas City Council members described as “scathing” and “disturbing.” Dallas City Council member Scott Griggs said when the audit was released that it was “time for a housecleaning” at VisitDallas, which he said was run like a “slush fund.” (Griggs is currently in a runoff for mayor of Dallas in an election that will be held in June.)
Key findings of the audit showed that there was insufficient oversight of how VisitDallas spent its money—of which about $30 million per year comes from public funds including bed tax revenue and the Dallas Tourism Public Improvement District, which charges a 2 percent assessment on all hotels in the city with 100 guest rooms or more.
The executive summary also concluded that financial reporting metrics from VisitDallas were not in place to assure that the city was getting its money’s worth from the DMO’s activities.
“Controls over certain expenditures of VisitDallas are not adequate and may not consistently ensure that the city receives its expected benefit,” the audit executive summary states.
Today, the VisitDallas board announced that Sam Coats, an industry veteran who is former board chair of VisitDallas and immediate past board chair of Dallas/Fort Worth International Airport, would take over as interim CEO of VisitDallas.
Like many DMOs, VisitDallas is not a city agency but a private-public partnership with the City of Dallas. The president and CEO of VisitDallas reports to the VisitDallas Board of Directors, which has 50 members. But the contract between the City of Dallas and VisitDallas expires in 2020.
At the time the audit was released in January, Jones said he and the staff and board of VisitDallas took the audit findings very seriously and that improvements in budget oversight would be looked at closely. Mark Woelffer, VisitDallas board chair, stood behind Jones at the time in saying the budget would be looked at, but that VisitDallas was doing extraordinary work.
But there were things in the audit that rankled various council members, including the issue of the $543 Tumi backpack for which Jones billed VisitDallas.
After the audit was announced, Jones said that the billing was an error that occurred after the backpack was lost by an airline. He said he wrote a $543 check to VisitDallas as soon as he learned of the mistake.
Critics like Griggs were not placated. The city councilman said Jones, with salary and bonus totaling $700,000 per year, was the highest paid person who derives his income from city taxes (even though Jones was not a direct employee of the city), and Griggs felt the city deserved better than what VisitDallas was delivering. (By contrast, City Manager T.C. Broadnax, who oversees 13,000 employees and a $3.6 billion budget, was receiving about $375,000 in 2017, according to public records published by the Texas Tribune.)
Apparently among those with trepidations about the audit findings was current Dallas Mayor Mike Rawlings, who was quoted in the Dallas Morning News as saying he had been talking with Woelffer for about two years—well before the audit—about the need for Jones to leave VisitDallas.
Rawlings and several council members said VisitDallas needs to move on with rebuilding the DMO.
Yesterday’s joint announcement between Jones and the VisitDallas board was not about the audit results or other controversial matters, however, but about mutual admiration on a professional level.
“The board is thankful to Phillip for his 15 years of leadership and a great career at VisitDallas,” said Woelffer, general manager of the Sheraton Dallas Downtown. “We are proud of the work VisitDallas has accomplished during Phillip’s tenure to promote Dallas, which is now a top 10 destination nationally for meetings, conventions, sporting events and leisure travel. As Phillip has decided to pursue other opportunities, we wish him the very best.”
The departing CEO said, “It has been a privilege to lead VisitDallas during an important period of growth for the organization and now it’s time for my next challenge. Together with my colleagues at VisitDallas, the City of Dallas and partners across the hospitality and tourism industry, we have positioned Dallas as the top visitor destination in Texas for meetings and events, and one of the top convention and visitor destinations in the nation. I’m proud of our accomplishments and know the organization is on track for continued success.”
“Phillip’s positive contributions to Dallas have been significant and lasting,” said Joyce Williams, incoming board chair of VisitDallas. “During Phillip’s tenure, hotel room-night bookings increased five-fold, we moved from No. 18 to No. 6 on the country’s top visitor destination list, Dallas’ Tourism Public Improvement District was created and Dallas was re-branded as a global destination. We wish Phillip well and look forward to continuing the great momentum as we welcome new leadership.”
Also leaving the staff is VisitDallas Chief Financial Officer Matthew Jones (no relation to Phillip Jones), according to Rawlings.