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Home My WebLink About12 - Newport Beach & Company's/Visit Newport Beach Fiscal Year 2018-2019Q SEW Pp�T CITY OF �m z NEWPORT BEACH c�<,FORN'P City Council Staff Report July 24, 2018 Agenda Item No. 12 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Dave Kiff, City Manager - 949-644-3001, dkiff@newportbeachca.gov PREPARED BY: Tara Finnigan, Deputy City Manager, tfinnigan@newportbeachca.gov PHONE: 949-644-3035 TITLE: Newport Beach & Company's Biennial Destination Business Plan, the Visit Newport Beach Fiscal Year 2018-2019 and Fiscal Year 2019-2020 Budgets and the Newport Beach Tourism Business Improvement District Fiscal Year 2018-2019 Annual Report and Budget ABSTRACT: Visit Newport Beach, Inc. (VNB), a business unit of Newport Beach & Company, provides destination marketing services to the City of Newport Beach (City) under an agreement for Tourism Promotion, Branding and Marketing Services. Under the terms of the agreement, VNB is required to submit certain records to the City Council for its review and/or approval. Newport Beach & Company has submitted its Destination Business Plan for Fiscal Year 2018-2019 and Fiscal Year 2019-2020 and a biennial budget for VNB for the City Council's review. Under a separate agreement with the City, VNB also serves as the administrator for the Newport Beach Tourism Business Improvement District (NBTBID). VNB has submitted the NBTBID's Fiscal Year 2018-2019 Annual Report and budget for the City Council's review and approval. RECOMMENDATION: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Authorize a waiver of the timeline provided in Section 3.5 of the Tourism Business Improvement District Management Agreement; c) Receive and file VNB's Biennial Business Plan; d) Review, approve and/or modify VNB's Fiscal Year 2018-2019 and Fiscal Year 2019- 2020 budget; 12-1 Newport Beach & Company's Biennial Destination Business Plan, the Visit Newport Beach Fiscal Year 2018-2019 and Fiscal Year 2019-2020 Budgets and the Newport Beach Tourism Business Improvement District Fiscal Year 2018-2019 Annual Report and Budget July 24, 2018 Page 2 e) Review, approve and/or modify the NBTBID's Fiscal Year 2018-2019 Annual Report; and f) Review, approve and/or modify the NBTBID's Fiscal Year 2018-2019 budget. FUNDING REQUIREMENTS: The current adopted budget includes sufficient funding for this project. Under its Agreement with the City, VNB receives 18% of all Transient Occupancy Tax collected by the City to fund destination marketing services and activities. VNB is projected to receive approximately $4.89 million in TOT funding in Fiscal Year 2018-2019 (FY 19). Under the terms of the separate, City-NBTBID agreement, the NBTBID assesses its member hotels 3% of gross short-term (stays less than 30 days) room rental revenue. The FY 19 assessment revenue is projected to be approximately $4.2 million. The City collects the member assessments on behalf of the NBTBID and retains 0.25% of 1% of the total assessments collected in order to reimburse the City for collection and administrative costs associated with the NBTBID. DISCUSSION: Visit Newport Beach, Inc. (VNB) VNB, a nonprofit organization (under IRS code §501(c)(6)), is the destination marketing organization for Newport Beach. Under an Agreement with the City, VNB provides marketing services to the City and community using transient occupancy tax revenues. The agreement was entered into on September 27, 2011. It was first amended in January 2014 to extend the term to December 31, 2024, to switch from an annual to biennial budget, to update contact information, and to add public benefit funding. The City Council approved a second amendment to the agreement in August 2014 to change the reporting timeline for the Performance Standards, Marketing Goals and Marketing Plan from annual to biennial to correspond with the biennial reporting timeline. Newport Beach & Company has submitted its biennial Destination Business Plan (Attachment A) for the City Council's review and its biennial budget (Attachment B), for the Council's review and modification or adoption. Newport Beach & Company also submitted the Performance Standards Report (Attachment C) for the Council's review. Newport Beach Tourism Business Improvement District (NBTBID) The NBTBID is a business improvement district formed pursuant to the Property and Business Improvement District Law of 1994, codified in Streets and Highways Code Section 36600 et seq., which helps fund marketing and sales promotion efforts for Newport Beach tourism businesses. It was established by Council Resolution 2009 - 21 on April 28, 2009 and is administered by VNB. The Management District Plan for the renewed NBTBID - the document that details the district's boundaries, funding and programs - was approved by the City Council in January 2014 and was amended by the City Council at its June 12, 2018 meeting. 12-2 Newport Beach & Company's Biennial Destination Business Plan, the Visit Newport Beach Fiscal Year 2018-2019 and Fiscal Year 2019-2020 Budgets and the Newport Beach Tourism Business Improvement District Fiscal Year 2018-2019 Annual Report and Budget July 24, 2018 Page 3 The amendments included adding the new Lido House hotel as a TBID member, updating the names of several member lodging business and updating the budget. The NBTBID's current, 10 -year term will expire on January 31, 2024. The NBTBID now includes nine hotels or resorts, each consisting of 100 hotel rooms or more, located within Newport Beach. They are: Balboa Bay Resort, the Fashion Island Hotel, the Hyatt Regency John Wayne Airport Newport Beach, the Hyatt Regency Newport Beach, the Lido House, the Newport Beach Marriott Bayview, the Newport Beach Marriott Hotel & Spa, the Newport Dunes Waterfront Resort & Marina, and the Renaissance Newport Beach Hotel. VNB, on behalf of the NBTBID owners association, has prepared the NBTBID's FY 19 Annual Report (Attachment D) and submitted a more detailed FY 19 budget for the NBTBID (Attachment E) for the City Council's review and approval. The annual report includes a summary of the NBTBID's proposed activities and budget for the current fiscal year. The report does not contain recommendations to alter the BID boundaries or the method and basis for levying assessments in this fiscal year. Staff is recommending a waiver of the timeline specified in Section 3.5 of the 2009 Tourism Business Improvement District Management Agreement between the City and Visit Newport Beach. The agreement sets a May 31 due date for the NBTBID annual report and it was received by the City shortly thereafter that date. It should be noted that the annual report was submitted prior to the recent amendments to the NBTBID's Management District Plan and thus, does not reflect the Lido House as a TBID member or the updated budget. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A — Newport Beach & Company Destination Business Plan for Fiscal Year 2018 -2019 and Fiscal Year 2019-2020 Attachment B — Visit Newport Beach Fiscal Year 2018 -2019 and Fiscal Year 2019-2020 Budgets Attachment C —Visit Newport Beach Performance Standards Report Attachment D — NBTBID Fiscal Year 2018-2019 Annual Report Attachment E — NBTBID Fiscal Year 2018 -2019 and Fiscal Year 2019-2020 Budgets 12-3 4 ATTACHMENT A FISCAL YEARS 2019 & 2020 BEYOND 2020 NEWPORT BEACH & COMPANY DESTINATION BUSINESS PLAN ash NIYFRs�� j ew art r� EACH & COMPANY BA�Wo:MK-, RPM I I., 4p . 12-5 TABLE OF CONTENTS INTRODUCTION 06 EXECUTIVE SUMMARY 08 NEWPORT BEACH & COMPANY OVERVIEW 12 DESTINATION NEXT FUTURES STUDY 20 BRAND ARCHITECTURE 22 INITIATIVE TARGETS 36 DESTINATION BUSINESS PLAN - AUDIENCE OVERVIEW CUSTOMER -BASED BUSINESS PLAN 44 LEISURE TRAVELER 80 MEETING PLANNER 98 LOCAL COMMUNITY 110 ORGANIZATION & BOARD OF DIRECTORS BUSINESS UNIT PLANS 124 VISIT NEWPORT BEACH INC. - LEISURE MARKETING 136 VISIT NEWPORT BEACH INC_ - GROUP SALES 144 DINE NEWPORT BEACH 148 ENTERPRISE NEWPORT BEACH 152 CELEBRATE NEWPORT BEACH 156 NEWPORT BEACH TV GOVERNANCE 164 EXECUTIVE COMMITTEE & BOARD OF DIRECTORS 165 TBID BOARD OF DIRECTORS 165 MARKETING COMMITTEE 166 NEWPORT BEACH & COMPANYTEAM 168 NEWPORT BEACH & COMPANY ACCOLADES 170 INDUSTRYTERMS 174 REFERENCES i 12-8 4 !lf*#j 0 0 11 A FISCAL YEARS 2019-2020 DESTINATION 8115155 I NTR0DUCTI0N 06 EXECUTIVE SUMMARY 08 NEWPORT BEACH & COMPANY OVERVIEW 12 DESTINATION NEXT FUTURES STUDY 20 BRAND ARCHITECTURE 22 "• '� 1 INITIATIVE TARGETS 1 � � 36 DESTINATION BUSINESS PLAN -AUDIENCES OVERVIEW 12-10 E X E C U T I V E summary Newport Beach & Company's next two fiscal years mark a momentous time in the company's history as one of the premier destination -marketing organizations in the world and as the community -marketing agency for the City of Newport Beach. The 30th anniversary of the cornpany's founding, 10" anniversary of its tourism business improvement district and fifth year of its unique business -unit structure all tee up fiscal year 2019 to be a monumental period as the marketing and sales agency gears up to take Newport Beach into a new decade and Beyond 2020'. NEWPORT BEACH As Newport Beach & Company enters the next two fiscal years at a pivotal time when it observes these three momentous anniversaries, the company and its business units present this fully integrated Destination Business Plan to drive destination brand awareness, community marketing and economic development for Newport Beach. With its new brand positioning campaign, Newport Beach & Company invites both consumers and meeting planners alike to "Journey Well Beyond." In the next two fiscal years, the company will fully integrate this brand positioning into all of its initiatives and across all audiences to take the destination Beyond 2020. Throughout the unique audience -based planning approach, Newport Beach & Company challenged its team to develop initiatives to take the destination Beyond 2020. These new approaches include a renewed focus around the following Beyond 2020 Initiatives: • Move the needle. Results First! • Spark global passion for Newport Beach. Global First! • Destination and Visit Newport Beach Storytelling. Story First! • Develop meaningful, personalized connections. People First! • Elevate the value of Newport Beach & Company and partners. Partners First'. • Community -marketing organization of the future. Community First! • Empower local residents and businesses leaders to increase economic impact. Locals First'. • Service matters. Service First! • Increase board engagement. Board First! • Prepare for the worst. Plan for the best. Company First! • Improve company efficiency and performance. Performance First! • Employees matter. Employees First! Through this strategic -planning process, the Newport Beach & Company 2019 & 2020 Destination Business Plan showcases the business strategy and plan to take Newport Beach Beyond 2020! We look forward to partnering with you on this "Journey Well Beyond." b FISCAL YEARS 2014-2020 DESTINATION BUSINESS PLAN 12-11 With recent success and historic achievements across all of its business units, some destination -marketing organizations would stop there and ride that wave of strong accomplishments and results. That is not the mission, vision nor mantra of Newport Beach & Company. With its entrepreneurial spirit and industry- leading model, the destination -marketing organization of the future never rests on its laurels. It constantly seeks new heights, new challenges and innovative ways to be the engine that drives economic vibrancy, success and results for Newport Beach, California. � � 1 Nw.porT 0-6Feuna em. 501(]3 Com rney dnnhip D. -1,P L fr EMM -NINE NEWPORT nkiv"T �FICM R6e[H PORT BEACHANDCO.COM 7 12-12 8 OVERVIEW MISS10N NEWPORT BEACH & COMPANY IS A CREATIVE AND FOCUSED COMMUNITY -MARKETING AGENCYTHAT IS SINGULARLY COMMITTED TO TELLING THE INTEGRATED NEWPORT BEACH BRAND STORY. BY EMBRACING A VARI ETY OF NEIGHBORHOODS, ;. BUSINESSES AND INDIVIDUAL UNIQUE VOICES INTO A COMPLEMENTARY STORY, NEWPORT BEACH & COMPANY STRENGTHENSALL OF ITS PARTNERS, DRIVES NEW REVENUETOTHE CITY AN D ENHANCES ITS OVERALL VI BRAN CY. FISCAL YEARS 2019.2020 DESTINATION BUSINESS PLAN CO RPO RAT EIO RGAN IIAT I O N A L BRAND PROMISE NEWPORT BEACH & COMPANY IS A PROGRESSIVE, DYNAMIC AND INNOVATIVE MARKETING ORGANIZATION THAT BRINGS A RESULTS -ORIENTED MINDSET ALONG WITH FORWARD- LOOKING ATTITUDE TO THE COMMUNITY IT SERVES. EMBRACING A LEARNING CENTERED ENVIRONMENT WHERE IDEAS CAN DEVELOPAND BE BEST USED FOR THE BENEFIT OF ITS PARTNERS, NEWPORT BEACH & COMPANY'S TEAM IS A PASSIONATE STEWARD FOR THE NEWPORT BEACH BRAND. IT IS RESOURCEFUL IN CREATING MEANINGFUL MARKETING PROGRAMS AND SERVICES AND SETTING THE STANDARD FOR OUTSTANDING DESTINATION LEADERSHIP. CO R PO RATE/ ORGAN I IATIONAL V1510N NEWPORT BEACH &COMPANY ASPIRES TO BE THE NATIONAL MODEL FOR OUTSTANDING INTEGRATED COMMUNITY MARKETING AND BRAND LEADERSHIP. AS AN ENTREPRENEURIAL LEADERSHIP ORGANIZATION, NEWPORT BEACH & COMPANY IS CREATIVE, INNOVATIVE AND PROFESSIONAL IN BUILDING DESTINATION AWARENESS BOTH LOCALLY AN D NATIONALLY WHICH DRIVES BUSINESS AND ECONOMIC GROWTH. IT STRIVES • TO DO FOR ITS PARTNERSAND STAKEHOLDERS WHATTHEY CANNOT DO INDIVIDUALLY. NEWPORTBEACHAND CO.COM 9 12-14 Visit Newport Beach, Inc., partners with the tourism and hospitality industry by protectingand 15ib nurturing the destination brand and delivers additional spending by leisure and conference visitors, leading to enhanced community economic vitality and quality of life. Visit Newport Beach, Inc., encompasses both leisure marketing, funded by the transient -occupancy tax (TOT) and group meetings sales, funded by the Tourism Business Improvement District (TB ID) hotel self-asse- C7 Created to keep Newport Beach tap -of -mind and relevant in a competitive culinary marketplace, Dine Newport Beach showcases and promotes Newport Beach as a premier dining destination offering innovative cuisine, fresh fare, diverse experiences and exceptional restaurants. Dine Newport Beach is a I unique partnership with the Newport Beach Restaurant Association. Founded in January 2013, Newport Beach & Company is a non-profit organization established to serve as the official sales and marketing agency for the City of Newport Beach. The agency brings together all of the marketing entities connected to the Newport Beach brand, and is designed to oversee separate business units that include Visit Newport Beach, Inc., Dine Newport Beach, Celebrate Newport Beach, Enterprise Newport Beach and Newport Beach TV. NEWPORT Each business unit plays a specific, unique role in benefiting the Newport Beach visitor and community. The combined efforts of the business units allow Newport Beach & Company to collectively leverage all of its resources to elevate each individually. NEwPQRTBEACHANDCO.CQM 11 12-16 DESTINATION NEXT: DESTINATION NEXT FUTURES STUDY In 2014, the destination marketing industry turned 100 years old and celebrated at its annual industry convention a century of destination marketing in cities, counties, regions and countries around the world. That year, the international association for the destination marketing industry, Destinations International, presented a comprehensive futures study called Destination NEXT to look at the next 100 years of this fast -paced, ever-changing industry. Destination NEXT provides practical actions and strategies for the viable success of destination -marketing organizations (DMOs) in an ever-changing world. Aiming to keep destination -marketing organizations relevant, Destination NEXT arms these organizations with insight into how they can best benefit their community. DESTINATION NEXT:FIRST PHASE The first phase of Destination NEXT identified major upcoming trends within the coming years that were analyzed by two panels. The first panel was a "Futurist" Panel that was able to foresee impending trends for a destination marketing organization based on the upcoming accumulated economic data and years of experience across a wide variety of industry sectors. The second panel was the "Industry" Panel, compiled of tourism specialists within the industry. Destination NEXT surveyed 361 panelists that were a blend of 327 destination marketing organizations in 36 countries and 34 supplier companies to identify opportunities for destination marketing organizations. 12 FISCAL YEARS 2019-2020 DESTINATION BUSINESS PLAN 12-17 13 18 DESTINATION NEXT: FIRST PHASE From 64 major trends, Destination NEXT developed 20 potential opportunities that fell within two key overarching trends: technology and customer expectations. These 20 opportunities were united under three transformational opportunities that will and can change the entire destination marketing industry. KEY TRENDS FOR DMOs ►TECHNOLOGY P- CUSTOMER EXPECTATIONS SELECTED TRENDS Taking all of the trends identified by the panel, Destination NEXT plotted the top 20 trends on a Future Map based on whether the trends are controllable or uncontrollable, and a threat or an opportunity. The Future Map is a new take on the SWOT (Strengths, Weaknesses, Opportunities, Threats) Analysis. SELECTED TRENDS SUB -CATEGORIES ► TECHNOLOGICAL ► LEGAL ► COMPETITOR ► CUSTOMER ► POLITICAL ► ECONOMIC ► GEOPHYSICAL ► SOCIAL DMOs TRANSFORMATIONAL OPPORTUNITIES: ENGAGEMENT: Broadcast to Engagement: Interacting with and leveraging the new marketplace • Find and engage with consumers on the platforms being used for vacation planning—online • Utilize the same tools customers use while planning trips to engage while in -market BRAND BUILDING: Brand Building: Building and protecting the destination brand • Play a central role in advocating for the destination • Connect visitor experience with the quality of life for residents NEW BUSINESS MODEL: Collaboration & Partnership: Evolving the DMO -business model • Be involved in broader economic initiatives • Agree on uniform methodology to measure economic impact • Engage more closely with non-traditional stakeholders 14 FISCAL YEARS 2019-2020 DESTINATION BUSINESS PLAN 12-19 Newport Beach & Company has taken a business direction that aligns with the Destination NEXT framework, working closely with the Newport Beach community, civic leaders, partners, and local businesses and residents to develop a comprehensive approach to leading-edge integrated marketing; brand development and advocacy; and forging new paths to evolve its business model. In many ways, Newport Beach & Company is already leaps and bounds ahead on these three transformational opportunities and has taken Newport Beach to that next level. Across all of its business units, Newport Beach & Company creates new and digital platforms and tools to better engage with local businesses, visitors and residents. Newport Beach & Company is able to deliver a comprehensive, singular brand platform (brand position, brand promise, brand values, brand personas and brand identity) for Newport Beach that is simple, memorable and market -tested. The genius of establishing Newport Beach & Company as the community marketing agency is that this unique company can create a cohesive brand experience across multiple business units and programs under one common brand. Lastly, Newport Beach & Company is an example for the entire destination marketing industry in showcasing the alignment of economic development and tourism and forging new partnerships and collaborations across a disparate group of business units, events and programs. Newport Beach & Company is the case study for the new business model of destination -marketing organizations in the future and already many are following this example around the country. IMPORTANCE FUTURE MAP - TOP 20 TRENDS 1 � 2.9000 3.4000 MITIGATE CONTROLLABLE EXPLOIT TOURISM INTEGRATED W/ ECONOMIC DEVELOPMENT BRAND IMPACT FOR LEISBRAND IMPACT FOR GROUPS URE •MOBILE PLATFORMS & APPS PRIMARY ENGAGEMENT SMART TECHNOLOGY TECHNOLOGY ENABLING FASTER DECISION-MAKING OPPORTUNITIES SHORT STAY TRIPS MORE PERSONALIZED INFO. ............................................................................. ........................ ...�. BIG DATA ............................... THREAT CONTINGENCIES OPPORTUNITY UNCONTROLLABLE MONITOR NEWPORTBEACH ANDCO.COM i5 12-20 ORDERING SHORT STAY TRIPS PRODUCTS ONLINE GEO-TARGETING & LOCALIZATION CUSTOMERS GOING DIRECTLY : TO SUPPLIERS HOTEL TAXES TO GOVERNMENT ALTERNATIVE FACING BUDGET POLITICALLY PRESSURE PEER-TO-PEER BUYER BASED PROJECTS INFLUENCE HIGHLY VOLATILE MORE THIRD -PARTY ECONOMIC INFORMATION CONDITIONS CONTINGENCIES OPPORTUNITY UNCONTROLLABLE MONITOR NEWPORTBEACH ANDCO.COM i5 12-20 DESTINATION NEXT: SECOND PHASE The second phase of Destination NEXT educates destination marketing organizations to prepare for these two key trends: technology and customer expectations. This new phase of Destination NEXT applies the findings from the survey to individual destinations. Using the identifiers found in the first -phase study, Destination NEXT encouraged each destination marketing organization to self -assess its place in the community to help identify future priorities and strategies for each destination. With these results, destinations were plotted on a quadrant map to identify and distinguish between developing destinations and established destinations and determine whether community engagement within the destination is strong or weak. DESTINATION STRENGTH ► DESTINATION ► BRAND ► ACCOMODATIONS ► ATTRACTIONS & ► CONVENTION & PERFORMANCE ENTERTAINMENT MEETING FACILITIES ► AIR ACCESS ► EVENTS ► SPORTING & ► COMMUNICATIONS ► MOBILITY & ACCESS RECREATION & INTERNET FACILITIES INFRASTRUCTURE COMMUNITY SUPPORT & ENGAGEMENT ► EFFECTIVE DMO ► MEMBERSHIP ► INDUSTRY ► LOCAL ► EFFECTIVE GOVERNANCE STRENGTH SUPPORT COMMUNITY ADVOCACY MODEL SUPPORT PROGRAM ► WORKFORCE ► HOSPITALITY ► REGIONAL ► FUNDING SUPPORT ► ECONOMIC CULTURE COOPERATION AND CERTAINTY DEVELOPMENT Through a survey completed by each destination marketing organization's internal leadership, government leaders, customers and key stakeholders, the destination marketing organization's ranking on community support and destination strength is then plotted on the map by the Destination NEXT team to determine if the destination marketing organization and the destination are: TRAILBLAZERS VOYAGERS EXPLORERS MOUNTAINEERS 16 FISCAL YEARS 2 019 -2 02 0 DESTINATION BUSINESS PLAN 12-21 Newport Beach & Company's executive team completed the Destination N EXT survey and invited the board of directors, community leaders, partners, government officials and meeting -planner clients to complete the survey. Gaining insight from a range of stakeholders gave the Newport Beach & Company team insight on outside perspectives. The strength of Newport Beach community engagement and establishing the brand as a top destination has positioned Newport Beach in the Trailblazer quadrant, notably above the US average. The results were compiled into a scorecard measuring Newport Beach's destination strength and community support. As a destination, every variable was above the industry average except events (at the average) and sports facilities (below average), with Newport Beach's overall destination strength 10% higher than the industry average. Newport Beach is exceptionally strong in community support and engagement, with every variable registering above the industry average. The overall community support and engagement figure rated 20% above the industry average. The Destination NEXT profile demonstrated that the overall health of Newport Beach & Company and the Newport Beach destination are strong, but there is room to improve. The top issues to address according to the study are international tourism readiness, high-tech city, art and cultural attractions, public transportation and event capacity. Many of the objectives, strategies and tactics in the following, two-year Business Plan address some of these issues and further strengthen the company and the destination for future success. One of the strongest results derived from the survey is the alignment of stakeholder responses, a result not often found. The Newport Beach & Company executive team, government leaders, stakeholders and board of directors scored Newport Beach in the Trailblazers quadrant, with the management team scoring right at the average. This shows that the Newport Beach community views the role of tourism in a similar light. The lack of an outlier demonstrates the effectiveness of Newport Beach & Company's brand and community engagement. DIFFERENT DEVELOPING REALITIES FOR DESTINATION DMOsICVBs STRONG COMMUNITY ENGAGEMENT ESTABLISHED DESTINATION NEWPORTBEACH ANDCO.COM 17 12-22 DESTINATION NEXT SECOND PHASE CONTINUES... The goal for Newport Beach & Company is to continue the success by educating residents, stakeholders, visitors and meeting planners of the benefits and value of Newport Beach by providing fresh, relevant and engaging content. With a strong alignment among various stakeholder groups and a common understanding of the value of tourism to the destination, Newport Beach & Company and Newport Beach as a destination are both poised for even greater things. NEWPORT BEACH OVERALL ASSESSMENT—US STRONG COMMUNITY ENGAGEMENT • DEVELOPING • • DESTINATION . *011ie, • • • • • • • • • • • •ME W I b12i B E!'AC H • • ;• + 0) TAT Et AV E RAG E D• r • A • • WEAK COMMUNITY ENGAGEMENT ESTABLISHED DESTINATION 18 FISCAL YEARS 2019-2020 DESTINATION BUSINESS PLAN 12-23 DESTINATION Perceived VARIABLE REPORT ,.D Performance (1-5 scale) INDUSTRY AVERAGE BEACH Brand 3.21 4.10 Destination Performance 3.83 4.45 Accommodation 3.42 4.01 Attractions & Entertainment 3.68 4.12 Communication & Internet Infrastructure 3.32 3.89 Mobility & Access 3.04 3.34 Air Access 2.90 4.07 Events 3.73 3.73 Convention & Meeting Facilities 3.12 3.45 Sports & Recreation Facilities 4.34 3.60 3.32 2.72 -•COMMUNITY ENGAGEMENT Destination Strength - Newport Beach Industry Average Destination Strength RESULTING SCENARIO ESTABLISHEDDESTINATION 3.85 3.49 COMMUNITY SUPPORT & ENGAGEMENT: Perceived Performance INDUSTRY AVERAGE Funding Support & Certainty 3.06 REPORT CARD NEWPORTVARIABLE BEACH 4.39 Economic Development 3.91 4.38 Membership Strength & Support 3.42 4.39 Regional Cooperation 3.58 4.35 Industry Support 3.70 4.56 Effective Advocacy Program 3.39 4.26 Local Community Support 3.60 4.07 Hospitality Culture 3.60 4.17 Workforce 3.16 4.13 Community Support & Engagement - Newport Beach Industry Average Community Support & Engagement 4.34 3.60 RESULTING SCENARIO -•COMMUNITY ENGAGEMENT NEWPORTBEACHAND CO. COM 19 12-24 NEWPORT BEACH BRAND ARCHITECTURE Newport Beach & Company conducted extensive research in order to develop values -based, brand position that would resonate with both existing and potential visitors on an emotional level. The results of this research are helping to guide Newport Beach & Company to better understand and speak to the personal values that motivate people to choose a travel destination. By communicating with the visitors in an engaging way in the hope is that they will become life-long advocates for the destination. A destination brand Promise is what Newport Beach delivers to visitors, residents, meeting planners, meeting attendees, and all groups who experience the destination. It serves as a promise or service level that Newport Beach delivers to every person or business who experiences the features, attractions, hotels and people in Newport Beach. VALUE BASED, BRAND POSITIONING PLATFORM To develop a values -based, brand -positioning platform for Newport Beach, Newport Beach & Company started with the pre-existing brand promise and then matched that up to the values that Newport Beach visitors expect from their vacation, meeting or getaway to Newport Beach. The intersection of the Newport Beac h brand promise and its customers' brand values is the value that most resonates with a Newport Beach visitor. The result of this research determined that Newport Beach's most valvable visitor prospect is ane who seeks enriching experiences both simple and refined. With Newport Beach's highly sophisticated, aspirational lifestyle and wide variety of experiential activities, the visitor concludes their stay feeling fully recharged and enriched in every sense. Newport Beach visitors and meeting planners seek deeper mare satisfying experiences, and they are willing to pay more for enrichment. It's this value of enrichment that fits what visitors and prospects seek from a vacation ar meeting in Newport Beach. Combine the feeling of enrichment with Newport Beach's core destination brand pillars: Abundance, Inspiration, Refinement, Fulfillment, Vitality and Smart Luxury, and Newport Beach delivers a powerful, values -based brand promise to its visitors and residents. The value -based brand -positioning platform of enrichment will serve as the foundation forall of Newport Beach & Company's marketing activities and messaging through X120 across all business units: Visit Newport Beach, Dine Newport Beach, Newport Beach N, Celebrate Newport Beach and Enterprise Newport Beach. This strategic approach ensures that the destination's brand -positioning platform is communicated consi stently a nd cohesively across all marketing touch -points - which enhances recall and famifiarity - but more importantly, drives preference for the destination that promises to deliver the emotional pay-off that visitors, meeting planners and meeting attendees desire. Newport Beach is an Orange County coastal fantasyland that represents a "taste of the perfect Iife," a place where vi sitars cart experience friendly, sophisticated, aspirational tifestyte that permits them to escape from dai{y reality. Comprised of a collection of unique islands and neighborhoods that farm their own distinct character, the destination offers a combination of affluence, quaintness, casual glamour and attention to detail. Coupled with the man-made and natural beauty of the destination, this is the place that al lows the visitors to relax and dream what can be. POSITIONING FORMULA: © STATE OF MIND • Willing to pay morelexert effort Appreciate and savor special moments . Want meaningful and fulfilling experiences Want to be and experience the best they can in life • Appreciate beauty • Want to escape reality • Enjoy variety • Prefer depth over superficiality • prawn to texture and contour ro� &T "W"q= . • Abundance J dOPP i . Inspiration • Refinement . Fulfillment • Smart Luxury . Vitality 20 FISCAL YEARS 2019-2020 DESTINATION BUSINESS PLAN _ . 12-25 I 21 12-26 r 5 %ODERN FAMILY Everyone is invited on a Modern Family vacation. When families are all shapes and sizes, a vacation destination needs to have something that caters to all of their needs. ROAM -ANGERS Love is in the air for these travelers, and never more so than when they are on vacation. From the biggest moments to weekend getaways, traveling is essential to these relationships. t � AFFLU E NTIALS As travelers who appreciate the finer things in life, AfFluentials want the best journey and are willing to pay to ensure their expeirence. HOMETOWN HOST Newport Beach residents love where they live. Inviting friends and relatives t visit, or host their own meeting or conference, allows them to reconnect and show off the beautiful place they call home. PERFECT PLANNER WELL -DOERS More than Just a mental escape, vacations area holistic experience for Well -Doers. They want to get out and be active or rejuvenate at the spa. When planning a business meeting for hundreds of people, there is little room for error. The perfect planner needs the best destination possible to impress their audience with just the right amenities. N ITIATIVE TARGET MODERN FAMILY WHEN LOOKING FOR A FAMILY GETAWAY, FEW DESTINATIONS ARE BETTER THAN NEWPORT BEACH. THE FAMILYTRAVELER IS EVOLVING. MULTI -GENERATIONAL TRIPS CONTINUE TO INCREASE IN POPULARITY, WHILE SINGLE PARENTS LOOK FOR VACATIONS WHERE EVERYONE CAN RELAX. FAMILIES BIG AND SMALL WANT EXPERIENCES TO CELEBRATE MILESTONES. AWAY FROM THE HUSTLE AND BUSTLE OF THE DAILY GRIND, FAMILIES CHERISH THE TIME TO CONNECT (OFTEN BY DISCONNECTING TO THE OUTSIDE WORLD) AS WELLAS PROVIDE PARENTS THE OPPORTUNITYTO SHARE THEIR OWN MEMORIES AND TRADITIONS RECALLED FROM CHILDHOOD TRIPS. WITH PLENTY OF ACTIVITIES FOR ALLAGE GROUPS, NEWPORT BEACH IS AN EASY CHOICE FOR FAMILIES. MEDIA CONSUMPTION TV DIGITAL RADIO MAGAZINE/TRADE ONLINE MOBILE SOCIALMEDIA PUBLICATION MOTIVATORS FAMILY HEALTH PARENTING/CHILDREN ENTERTAINMENT FINANCE TRAVEL DINING SHOPPING 24 FISCAL YEARS 2019-2020 DESTINATION BUSINESS 21,66% NEWPORT BEACH VISITOR PART ES TRAVELING t CHILDREN 17.7 MILES FROM NEWPORT BEACH TO DISNEYLAND-` RESORT ET PROFILE 20 FLAVORS OF MILKSHAKES AT THE ORIGINAL RUBY'S DINER VISITOR RATING FOR FAMILY FUN � 3.4 AVERAGE SIZE OF NEWPORT BEACH LEISURE TRAVEL GROUPS EACHANDCO COM INITIATIVE TA ET ROAM -ANGERS LOVE IS IN THE AIR IN NEWPORT BEACH. FROM FIRST DATES TO THE BIC DAY, NEWPORT BEACH OFFERS THE PERFECT AMOROUS BACKDROP - ONLY LOGICAL SINCE LOVE STORY WAS FILMED HERE, KEEP THE MOMENT INTIMATE OR CET THE PERFECT PHOTOS TO SHARE; NEWPORT BEACH CREATES A LASTING MEMORY EITHER WAY. DINING} SPAS AND SPECTACULAR SUNSETS MAKE NEWPORT BEACH THE PERFECT ROMANTIC HOLIDAY. MEDIA CONSUMPTION TV DIGITAL RADIO MAGAZINE/TRADE ONLINE MOBILE SOCIAL MEDIA PUBLICATION MOTIVATORS ENTERTAINMENT DINING TRAVEL NATURE SHOPPING HEALTHY LIVING M EBRITY NEWPORT BEACH MOMENTS NEWPORT BEACH FILM FESTIVAL NEWPORT BEACH WINE & FOOD FESTI` NEWPORT BEACH RESTAURANT WEEK HYATTSIJMMER CCNCERT SERiES CHRISTMAS BOAT PARADE 26 FISCAL YEARS 2014-2810 DESTINATION BUSINESS PLAN 134,000 TARGET PROFILE ANNUAL TRAVELERS TO `'• y„ NEWPORT BEACH FOR A WEDDING 537,050 AVERAGE COST OFA WEDDING IN ORANGE COUNTY 4 3.1 °Io NEWPORT BEACH TRAVEL PARTIES OF2 2.4 M WEDDINGS PERFORMED IN THE U.S. ANNUALLY I a I .. cl"-n 72% COUPLES WHO BELIEVE THAT TRAVEL INSPIRES ROMANCE COUPLES WHO BELIEVE TRAVEL MAINTAINS A HEALTHY RELATIONSHIP NEW Pl.TBEACHAND CO.COM I N IT IATIV E TARGET A F F L U E N T I A L S NEWPORT BEACH IS THE PERFECT DESTINATION FOR THE DISCERNING TRAVELER. THE LUXURY TRAVELER IS LOOKING FOR EXPERIENCES THAT HELP THEM FEEL A WORLD AWAY, CREATING MEMORIES WITH MORE THAN PHYSICAL GOODS- THOUGH AN EXCLUSIVE FIND WOULDN'T BE IGNORED. PREMIUM HOTEL PRODUCT, EXQUISITE DINING, PERSONALIZED SHOPPING AND THE GLAMOROUS YACHTING LIFESTYLE BECKON THOSE WILLING TO SPLURGE ON THE FINER THINGS TO VISIT NEWPORT BEACH. MEDIA CONSUMPTION ��0000 `V DIGITAL RADIO 144AGAZINE(TRADE ONLINE MOBILE SOCIAL MEDIA PUBLICATION MOTIVATORS FAMILY HEALTH ?RAVEI PARENTINGICHILDREN DINING ENTERTAINMENT SHOPPING FINANCE NEWPORT BEACH MOMENTS CHRISTMAS BOAT PARADE NEWPORT BEACH RESTAURANT WEEK NEWPORT BEACH WINE & FOOD FESTIVAL CORONA DEL MAR CHRISTMAS WA FASHION ISLAND TREE LIGHTING 28 I lSCAL YEARS 2019.202() DESTINATION OUSINESS PIAN 26.3% NEWPORT BEACH HOTEL GUESTS EARNING MORE THAN $150,000 6 AVERAG TAKEN ANNU) LU XURYTRA► 47.2 AFFLUENT NEWPOR'TBEAC VISITORS TRAVI WITH CHILDRE? 000 1 r i..1 . TARGET PROFILE 9% U.S. POPULATION MAKING OVER $150,000 EF 1,229 NEWPORT BEACH HOTEL ROOMS AVAILABLE AT 4- AND 5 -STAR HOTELS 13 LUXURY CAR _ DEALERSHIPS IN S NEWPORT BEACH - &Nabt TORTBEACHANOCD CSM 29 i INITIATIVE TARGET HOMETOWN HOST WHEN YOU LIVE IN PARADISE, INVITING FRIENDS AND FAMILY FROM OUT OF TOWN ISA REQUIREMENT. GETTING VISITORS TO STAY WITH FRIENDS AND RELATIVES (VFR TRAVELERS) EXPOSES A NEW AUDIENCE TO THE DESTINATION AND ENCOURAGES LOCALS TO SPEND MORE TIME AND MONEY AT LOCAL BUSINESSES TO CREATE AN AUTHENTIC NEWPORT BEACH EXPERI- ENCE. LOCALS HAVE THE POWER TO BRING MEETINGS AND ASSOCIATES HOME, BRINGING BIG IMPACT TO THE COMMUNITY. MEDIA CONSUMPTION TV DIGITAL RADIO MAGAZINEJTRADE ONLINE MOBILE SOCIAL MEDIA PUBLICATION MOTIVATORS FAMILY HEALTH ENTERTAINMENT SHOPPING MOVIES DINING NEWPORT BEACH MOMENTS CHRISTMAS BOAT PARADE HYATT SUMMER CONCERT SERIES NEWPORT BEACH RESTAURANT WEEK NEWPORT BEACH WINE & FOOD FESTIVAL CORONA DEL MAR CHRISTMAS WALK 30 FISCAL YEARS 2019-2020 DESTINATION BUSINESS PLAN 42°I SHARE OF r - U.S. DOMESTIC TRAVELER TRIPS TO VISIT FRIENDS AND RELATIVES -- f 4.2 AVERAGE NIGHTS VFR TRAVELERS STAY IN NEWPORT BEACH -� $355 DAILY SPENDING BY NEWPORT BEACH VFRTRAVEL PARTIES TARGET PROFILE 188,000 i NEWPORT BEACH VISITORS STAYING WITH FRIENDS AND RELATIVES ANNUALLY N ITIATIVE TARGET WELL -DOERS WITH 300 DAYS OF SUNSHINE, THERE IS NO BETTER PLACE FOR THOSE LOOKING FOR HOLISTIC WELLNESS THAN NEWPORT BEACH. FROM LAND TO SEA, THE OPTIONS IN NEWPORT BEACH ARE SEEMINGLY ENDLESS FOR THOSE LOOKING FOR A REFRESHING GETAWAY. A SEEMINGLY ENDLESS SUPPLY OF WORKOUT -CLASSES AND HEALTHY FOOD OPTIONS CREATE THE PERFECT HAVEN FOR THOSE CONSCIOUS OF THEIR MIND, BODY AND SOUL. MEDIA CONSUMPTION MOE TV DIGITAL RADIO MAGAZINE/TRADE ONLINE MOBILE SOCIALMEDIA PUBLICATION MOTIVATORS HEALTHY LIVING NATURE ENVIRONMENTALLY FRIENDLY DINING TRAVEL TECHNOLOGY SHOPPING CELEBRITY NEWPORT BEACH MOMENTS CORONA DEL MAR 5K NEWPORT BEACH WINE & FOOD FESTIVAL NEWPORT BEACH RESTAURANT WEEK NEWPORT BEACH FILM FESTIVAL OC MARATHON WELLNESS WEEK 32 FISCAL YEARS 2019-2020 DESTINATION BUSINESS PLAN 21400 ACRES OF BACK -COUNTRY WILDERNESS IN CRYSTAL COVE STATE PARK MIT tt- 18JUICE BARS IN NEWPORT BEACH 10.5 MILES OF PAVED TRAIL ON THE BACK BAY LOOP 9/10 / VISITOR RATING FOR OUTDOOR RECREATION r f � f L-TARGET PROFILE 41,8% NEWPORT BEACH TRAVELERS CONSIDERING THE OUTDOORS AN IMPORTANTVALUE 43 HOLES OF PUBLIC GOLF IN NEWPORT BEACH N E W PORTBEACHAN DCO.COM IN ITIATIVE TARGET PERFECT PLANNER BUSINESS AND PLEASURE COLLIDE IN NEWPORT BEACH. WHEN MEETING PLANNERSARE LOOKING FOR THE IDEAL BOUTIQUE DESTINATION TO ATTRACT MEETING ATTENDEES, THEY LOOK NO FURTHER THAN NEWPORT BEACH. FANTASTIC HOTEL PROPERTIES, UNIQUE MEETING SPACES AND PLENTY OF GROUP ACTIVITIES COME TOGETHER IN THIS COASTAL HAVEN TO SPARK INSPIRATION AND PRODUCTIVITY. ASA BONUS, SMART PLANNERS USE THE RESOURCES OF THE VISIT NEWPORT BEACH GROUP SALES MEDIA CONSUMPTION moo4 TV DIGITAL RADIO MAGAZINE/TRADE ONLINE MOBILE SOCIALMEDIA PUBLICATION MICRO -AUDIENCES CORPORATE MEETING PLANNERS ASSOCIATION MEETING PLANNERS SMERF MEETING PLANNERS THIRD -PARTY MEETING PLANNERS NEW TARGET INDUSTRIES INTERNATIONAL MEETING PLANNERS MICE PLANNERS FICP PLANNERS PHARMA PLANNERS MEETING ATTENDEES 34 FISCAL YEARS 2019-2020 DESTINATION BUSINESS PLAN NEWPORT BEACH MOMENTS DUFFY BOAT PEDEGO BIKES HARBOR CRUISE CULINARY DINE-AROUNDS UNIQUE OFF-SITE VENUES PF 12-39 1759000 SQUARE -FEET OF HOTEL MEETING SPACE 29,5% BUSINESS TRAVELERS WHO EXTEND TRAVEL FOR LEISURE IN NEWPORT BEACH 17% GROUPROOM NIGHTS FROM MIDWEST 22 NONSTOP DESTINATIONS FROM JOHN WAYNE AIRPORT, ORANGE COUNTY TARGET PROFILE RESTAURANTS OFFERING GROUP -DINING EXPERIENCES DEFINITE CONVERSION FROM 118 SITE VISITS 54% TOTAL ROOM NIGHTS FROM CALIFORNIA PORTBEACH AND CO. COM i1MOW W■L LEISURE TRAVELER Visitors and potentia! visitors to Newport Beach who bring valuable revenue that enhances the local economy primarily through transient occupancy tax (TOT) and direct visitor spending. MEETING PLANNER 4 Meeting planners interested in hosting group (--0-0 meetings, a conference or event in Newport Beach's n n tourism business improvement district (TBID) hotels. 1 V N PLAN k T LOCAL COMMUNITY 000 Members and leaders of the Newport Beach community including local 1 residents, partners, City of Newport Beach, hotels, business improvement I I If[ I districts {BIDS), merchant associations, regional destination marketing Iorganizations (DM Os), Orange County Visitors Association (OCVA), Orange County government leaders and influential community stakeholders. ORGANIZATION N & BOARD OF DIRECTORS Staff, executive team, executive committee and board of directors of On Newport Beach & Company and Visit Newport Beach, Inc. F1 I t .f � •tT;,�Tr #J E N P 0 14 f ki A; CY H; l� Jti. C] c Ci - c L7 12-42 GOAL S VISIT NEWPORT BEACH WEBSITE VNB Web Visits 1,191,300 1,192,300 1,195,000 SOCIAL MEDIA 5,900,000 5,950,000 6,000,000 Social Followers 172,000 175,000 180,000 ADVERTISING 75 78 80 Online Ad Click to Site 321,000 322,000 323,000 Marketing Room Nights 61,200 63,000 64,500 Marketing Campaign/Economic Impact $40,800,000 $42,000,000 $42,500,000 PUBLIC RELATIONS Placements 550 555 560 Average Barcelona Score 58 60 62 Key Media Outlet Placements 114 120 122 INTERNATIONAL Wholesalers Trained 205 225 230 In -Market Agent Visits 27 30 35 NEWPORT BEACH & COMPANY CELEBRATE.O.BEACH ADVERTISING Total Ad Impressions 5,900,000 5,950,000 6,000,000 PUBLIC RELATIONS Placements NEWPORTDINE WEBSITE 75 78 80 Web Visits 158,100 158,200 158,300 SOCIALMEDIA Social Followers 12,500 13,000 13,500 PUBLIC RELATIONS Placements 30 33 35 New Episodes NA 20 25 YouTuhe Channel Views 160,000 162,000 165,000 38 FISCAL YEARS 2019-2020 DESTINATION BUSINESS PLAN 12-43 BUDGET S NEWPORT BEACH & COMPANY NEWPORT BEACH &COMPANY FY2 019 FY2020 = Revenue $2,769,546 $2,822,432 Operating Expenses $2,562,046 $2,627,432 Community Relations $150,000 $150,000 Collateral $12,500 $12,500 Website $15,000 $2,500 PIR/Communications $30,000 $30,000 VISIT NEWPORT BEACH MARKETING BUDGET VISIT NEWPORT BEACH - LEISURE Im BUDGET FY2019 BUDGET FY2020 Revenue $5,017,493 $5,233,355 Operating Expenses $184,669 $188,448 Advertising $810,000 $1,085,000 Community Relations $260,991 $291,740 Collateral $62,000 $62,000 International Marketing $745,000 $465,000 Digital Marketing $358,000 $433,000 Public Relations $267,287 $325,735 Fees and Contributions to Newport Beach & Company $46,964 $45,000 GROUP SALES BUDGET GROUP SALES (TBID):�� BU DG ET FY2019 BUDGET• • Revenue $4,243,884 $4,431,001 Operating Expenses $1,771,595 $1,782,088 Advertising $325,000 $275,000 Community Relations $166,789 $190,000 Digital Marketing/Website $14,500 $12,000 PRICommunications $80,000 $100,000 International Marketing Initiatives $90,000 $55,000 Trade Shows $375,000 $425,000 Sales Group Enhancement Credit $300,000 $355,000 Hosted Industry Events $46,964 $45,000 Industry Partnerships/Sponsorships $248,964 $215,000 Site Inspections $45,000 $81,433 Client Events $75,000 $125,000 Conference Services $1,000 $1,000 Data $100,000 $85,000 Special Promotions $80,000 $100,000 Customized Destination Support $524,072 $584,480 _ NEWPORTBEAC HANDCO.COM 39 12-44 5-7 wpm, IF 40 FISCAL YEARS 2019-2020 DESTINATION BUSINESS PLAN 12-45 12-46 w i" r. 04 116- W-.-6�2 42 FISCAL YEARS 2019-2020 DESTINATION BUSINESS PLAN 12-47 CUSTOMER -BASED D E S T I NATION BUSINESS PLAN AUDIENCE PLANS 44 LEISURE TRAVELER 80 MEETING PLANNER 98 LOCAL COMMU N ITY 110 ORGANIZATION & BOARD OF DIRECTORS 12-48 CUSTOMER -BASED DESTINATION BUSINESS PLAN LEISURE TRAVELER Newport Beach & Company through its business -unit structure, presents this integrated marketin , media relations, digital marketing, brand development, communications and meetin s -services business plan to ata record number of leisure visitors and business travelers to Newport Beach in tt 2019 and 2020 fiscal years. The City of Newport Beach has contracted with Newport Beach & Company to foster a strong tourism environment; to attract visitors with strategic marketing efforts; and to engage them in -market to create a positive visitor experience. Byy enticing visitors to stay in Newport Beach, the City of Newport Beach generates Transient Occu ancy Tax (TOT), its third-largest revenue source. This income to the city benefits residents, saving each houlold an average of $1,139 in additional taxes every year, while maintaining the exceptional infrastructure and city services expected in Newport Beach. And, to keep the Newport Beach economy churning at the same levels and to keep all of the thousands of local businesses open, each household would have to spend more than $43,922 more locally each year in Newport Beach. Tourism plays a vital role in the Newport Beach economy. Visitors spend significant dollars at hotels, restaurants, attractions, retail and local businesses. The 7.3 million annual visitors infuse $1.2 billion into Newport Beach's economy, supporting more than 16,000jobs each year and generating more than 543 million in local taxes making tourism one of the purest and most lucrative forms of economic development. Newport Beach & Company works to track and evaluate the effectiveness and return -on -investment for all of its leisure marketing initiatives. Third -party research vendors track incremental trips to the destination, incremental visitor spending in the destination, hotel room nights and overall ROI of each integrated marketing campaign. Newport Beach & Company plans to continue thorough campaign tracking and benchmarking studies to further refine and direct marketing funds and staff resources on media markets, media channels and visitors who are most likely to visit Newport Beach, spend more dollars in the destination, stay longer and visit Newport Beach more often. With the internal mantra, "Beyond 2020," Newport Beach & Company plans to think in new, innovative ways to take the Newport Beach brand global and drive worldwide name recognition and brand awareness to even greater heights. Newport Beach & Company will utilize fully its cross -functional leisure traveler marketin� team to accomplish the objectives set forth in this plan. Marketin dia relations and meetings services will work together to keep Newport Beach at the forefront of travel trerod s and drive incremental visitation to Newport Beach. By leveraging all of the planning team's resources, the cross -departmental team developed this integrated business plan for the leisure traveler customer segment with a management-by-ob''ectives approach where objectives are quantifiable goals, strategies form strategic approaches to reaching xe objectives, and tactics are projects that support overarching strategies. FISCAL YEARS 2019-2020 DESTINATION 8LJ$1NESS PLAN 12-49 BEYOND 2020 INITIATIVES OBJECTIVE1O MOVE THE NEEDLE. An increase in leisure trips that result in 42,000 additional leisure hotel -room nights booked and $42 million in incremental leisure travel (visitor) spending to Newport Beach. OBJECTIVE O2 &fo6ajFiMt! SPARK GLOBAL PASSION FOR VISITING NEWPORT BEACH. Increase brand awareness for Newport Beach through bold, brand -building initiatives on a global scale that take the Newport Beach brand beyond traditional destination marketing into true destination storytelling. OBJECTIVE o 3 SrtDjFrst]. TAKE THE NEWPORT BEACH DESTINATION BRAND STORY BEYOND 2020. Increase brand awareness for Newport Beach through bold, brand -building initiatives on a global scale that take the Newport Beach brand beyond traditional destination marketing into true destination storytelling. OBJECTIVE (D 1'e'vr4firSt! DEVELOP MEANINGFUL, PERSONALIZED CONNECTIONS. Create more personalized, more emotional connections with all leisure customers, influencers and intermediaries to drive brand awareness, brand advocacy and visitation. TARGET PROFILES • FREQUENT-INDIVIDUAL TRAVELERS (FIT)—LEISURE VISITORS AND BUSINESS TRAVELERS FROM REGIONAL FEEDER MARKETS, NATIONAL, INTERNATIONAL MARKETS -MODERN FAMILY - ROAM-ANCERS -WELL-DOERS - AFFLUENTIALS - HOMETOWN HOSTS • TRAVEL TRADE (TOUR OPERATORS, WHOLESALERS, TRAVEL AGENTS) • LOCAL RESIDENTS/VISITING FRIENDS AND RELATIVES (VFR) • MEETING ATTENDEES NEWPORT BEACHANDCO.COM 45 LEISURE TRAVELER customer - based destination business plan Leisure travel and tourism projections rely heavily on the overall economic condition of international, national and local markets. By looking at economic factors, particularly gross -domestic product (GDP) and economic growth, inferences can be made on future -travel behaviors. Analyzing research and travel trends guides Newport Beach & Company when planning initiatives. With the assistance of Tourism Economics, a leading tourism economic -research firm, and other key research tools, Newport Beach & Company has analyzed the economic situations and travel trends of domestic and key international markets, including: Q� CANADA Q� CHINA �� UNITED KINGDOM 0)__1 MIDDLE EAST International travelers are vital drivers of economic impact and visitor spending to Newport Beach, because of their longer lengths of stay and disproportionately higher spending. Domestic travelers make up the majority of Newport Beach's visitation. National economic patterns reflect the traveler behavior as well as Newport Beach & Company's business functions. 12-51 The largest faction of domestic travelers to Newport Beach comes from within California. Visit California, the state destination -marketing organization, invests in valuable research when looking at statewide -travel patterns and impact of visitors within the state. Knowing how travelers behave in the destination is paramount. Newport Beach & Company invests in analyzing these patterns to make more informed business decisions on where to invest marketing dollars; staff resources; and international media relations and travel -trade initiatives. The United States is a complex tourism environment. Trends at the national level down to the local level depend on each other, while each having their own nuances: UNITED STATES CALIFORNIA ORANGE COUNTY NEWPORT BEACH W, RESEARCH SUMMARY • Nearly 637,000 hotel room nights were sold in Newport Beach in 2017, a decrease of 5.6% over the previous year. Average occupancy rate decreased to 72% in 2017 from 76% in 2016. Room demand was affected likely by major hotel renovations and rebranding, which are set to be completed in 2018. Additionally, a new 130 -room upscale boutique hotel, Lido House, has opened. Hotel room demand will grow in 2018 and the occupancy rate is expected to return to 76%. Demand is expected to stabilize and grow at an average annual rate of 1.8% through the forecast period. • Strong domestic fundamentals supported a solid finish for the US economy and travel industry in 2017. Moving forward, the economy is expected to break out of its 2.0-2.5% growth range, with GDP growth forecast at 2.8%. Business investment and exports will be strong engines of growth while consumer spending trends will reflect a mature economy. Solid employment growth, gradually firming wage growth, and high confidence levels should all support household outlays. These factors, along with expected expansion in hotel room demand and hotel room supply will contribute to growth in Newport Beach's visitor market in 2018-2020. • Despite solid economic fundamentals, uncertainty persists in both domestic and international markets, weighing on US hotel sector performance. This trend is expected to continue. While business investment has strengthened, and global demand heats up, ongoing dysfunctionality in Washington D.C. could constrain the pace of spending. On the international front, while inbound travel lagged global trends in 2017, a weaker dollar and improvements in major source market economies make the United States a more attractive market for foreign travelers. However, caution remains as unintended consequences of President Trump's ongoing rhetoric and policies related to travel restrictions, immigration, and international relations still pose risks. INTERNATIONAL TRAVEL SUMMARY CANADA Newport Beach & Company understands the value of international travel to Newport Beach. With higher spending and longer lengths of stays, international travelers are a significant visitor sector. Newport Beach has four primary international markets: Canada, China, United Kingdom and the Middle East. UNITED KINGDOM 12-53 Of those markets, Newport Beach & Company directly invests in marketing, media relations and travel -trade with an office in the United Kingdom. For China and Middle East, Newport Beach & Company partners with Orange County Visitors Association (OCVA) to market and promote Newport Beach and other participating destinations in those countries. In the upcoming planning period, Visit Newport Beach will explore opportunities for representation in Canada. W . 7A MIDDLE EAST .0 CHINA MARKET PROFILE I -.0-P A ISI Canada is a major visitor source to the United States and California. As a warm -weather destination with direct flights operating between John Wayne Airport, Orange County and Vancouver, Canada is an opportunity market for Newport Beach & Company to expand international marketing. Canada was the envy of the other advanced economies in early 2017, growing at a feverish 4% annualized pace, the fastest among the G7 economies. More recently, the pace of economic expansion has cooled, with real GDP slowing to 1.7% annualized growth in Q3. Gains in consumer spending, business and government investment and inventories were partially offset by drags from residential investment and net trade. Real GDP growth is forecasted to moderately slow to an average of 2.0% in 2018 from 2.9% in 2017. The economy has eliminated most of the excess economic slack that developed in the wake of the plunge in oil prices in 2014 and 2015. Strong gains in consumer spending and housing activity helped mitigate the contraction in business investment that occurred as energy firms adjusted to the lower oil price environment. Looking ahead, there is an expected gradual rotation in growth drivers away from a reliance on consumer spending and housing activity and towards stronger investment and exports. The energy sector has completed its adjustment to the new, lower oil price environment while non -energy investment is slowly gaining momentum. Government infrastructure spending is also starting to accelerate. Meanwhile, export growth has been somewhat lackluster but expect that the synchronized global economic upturn and a still competitive currency will provide a stronger impetus to exports in 2018. Recent income growth trends have not kept Pace with the strong desire among consumers to spend, leading to a drawdown in household savings. Looking ahead, low household savings, coupled with rising interest rates, slower employment growth and firming inflation will weigh on consumer spending in 2018. On the labor market front, expect jobs growth to gradually slow as the labor market approaches full employment, though stronger wage pressures will provide some offset for incomes. With little excess labor slack remaining, CPI inflation is likely to remain around 2%, weighing on real disposable incomes. High stock prices and home valuations will partially ofFset these headwinds. Overall, expect consumer spending growth to slow to around 2.6% in 2018, down from an estimated 3.6% in 2017. Global demand should strengthen steadily in 2018, with world trade weighted by Canadian export shares expected to grow a solid 5.4% annually over the next two years. However, the Trump administration's protectionist agenda will remain a persistent trade risk CANADIAN TRAVEL FORECAST 2021 CA 2021 FORECASTING VISITATION VISITOR SPEND 1.S FORECAST $2944 B INCA FORNIAING CANADIAN TRAVEL INSIGHTS $19202 10 NIGHTS AVERAGE SPEND PER TRIP AVERAGE LENGTH OF STAY CANADIAN TRAVELERS DESIRE MORE PERSONALIZED AND AUTHENTIC EXPERIENCES THAT OFFER SELF-FULFILLMENT. SIGHTSEEING, SHOPPING, BEACH, NATURE AND CULTURE ARE TRIP MOTIVATORS. CANADA IS THE SIXTH-LARGEST MARKET FOR TOP SPENDERS IN THE LUXU- RY SEGMENT DRIVEN BY THE 45 -55 -AND -OVER DEMOGRAPHIC. (SOURCE: VISIT CALIFORNIA) MARKET PROFILE CHINA Travelers from China have been flocking to the United States. Since the simplification of the tourist visa was implemented, travel from China has increased by double-digit percentages. Newport Beach & Company, in partnership with the Orange County Visitors Association, is eager to entice this lucrative market to visit Newport Beach. Growth momentum remains solid at the start of 2018, driven by a steady export performance and healthy domestic demand. Expect the favorable external setting to continue to support China's exports in 2018; trade friction with the US will rise, but don't expect a full-blown trade war. Domestic demand is forecasted to cool this year on tighter monetary and fiscal policies, but do not expect a sharp slowdown, as "stability" remains a key government objective. Overall 2018 GDP growth is forecasted at 6.4%, after 6.9% in 2017. The Chinese yuan has rallied impressively against the US dollar and, more recently, against the People's Bank of China basket of currencies. The latter likely happened because China's policymakers have been comfortable accepting some of the appreciation pressures on the foreign exchange market amid improved sentiment. Following the recent spurt and our view that the US$ will soften a bit more during the rest of 2018, expect the CNYIUS$ rate to appreciate to 6.20 by end -2018 (previously forecasted at 6.41). Domestically, expect investment momentum to remain subdued this year, given the efforts to rein in capacity in heavy industry and slower real estate activity amid tighter monetary and fiscal policy as well as ongoing property tightening measures. Although consumption growth may ease slightly in 2018 on moderating real wage growth and a less buoyant property market, it should remain solid and significantly outpace investment. 12-57 Key downside risks to domestic demand stem from a more pronounced -than -expected impact of the planned financial tightening and slower real estate activity. Expect GDP growth to decelerate through 2020, slowing investment and industrial activity, and forecast continued solid consumption and service sector growth. Overall, expect GDP growth in 2018-20 to average 6%. The Chinese government targets average GDP growth of at least 6.5% through 2020 to achieve the objective set in 2010 to double GDP and per capita income by 2020. With 2017 growth having surprised on the upside, China now only requires average growth of 6.3% per year in 2018-20 to meet that target. Nevertheless, challenges remain, including a property slowdown and still significant excess capacity in heavy industry. CH I NA TRAVEL FORECAST 2021 CA 2021 FORECASTING VISITATION V 2.1 FORECAST $4974 B INISITOR CAL FORNIAING CHINA VISITOR PROFILE $19504 .5 NIGHTS AVERAGE SPEND PER TRIP AVERAGE LENGTH OF STAY SHOPPING, SIGHTSEEING, AND DINING ARE TOP DESTINATION SELECTION DRIVERS. FITTRAVELERS FROM CHINA ARE UP 40 PERCENT, WITH STRONG GROWTH IN BEYOND -THE -GATEWAY TRAVEL. (SOURCE: VISIT CALIFORNIA) MARKET PROFILE MIDDLE EAST Newport Beach & Company and Orange County Visitors Association have identified the Middle East as an international opportunity market, with high in -market spending and a desire to experience luxury lifestyles. Newport Beach & Company and Orange County Visitors Association have targeted the United Arab Emirates, Saudi Arabia and Qatar as the primary Middle East markets. The UAE, Saudi Arabia and Qatar are all a member of the Gulf Cooperation Council (GCC). The cooperation of regions in the area is a key indicator as to the economic situations of their citizens. GCC economies can look forward to stronger growth amid higher oil prices and easing austerity. GCC governments remain committed to keeping their currencies pegged to the US dollar, and there are no discussions or plans to change course. Absent another severe downturn in oil prices, the pegs are likely here to stay for the next few years. External deficits are slowly becoming surpluses in the larger GCC economies, and even the smaller states of Bahrain and Oman are financing their deficits. The pegs, which may be an anchor of stability, have indeed helped maintain low inflation rates. But they will increasingly hold back development and growth. As GCC economies diversify away from oil, the countries need more flexible exchange rate regimes that can make their nascent non -oil sectors competitive in relation to their trading partners, which are increasingly in Asia (by contrast, the US accounts for about only 5!0 of total GCC exports). As fiscal reforms bear fruit in terms of revenue diversification, a coordinated move to currency baskets — to include the Chinese yuan at the very least — will increasingly make more sense. Maintaining the currency pegs implies importing US monetary policy. While we expect the Federal Reserve to carry out four rate hikes in 2018, we do not think they will be much of an issue for GCC economies in the near 12-59 term, given that the business cycles are fairly aligned (with growth and inflation accelerating). But the tightening will nonetheless curtail the GCC region's still -weak growth recovery. The divergence in the region's implementation of a value-added tax exemplifies the new "two- speed" GCC, with cooperation strengthening between Saudi Arabia and the UAE at the expense of the other states. We see no progress on a Gulf Monetary Union in the foreseeable future. The GCC is no longer a debt -free region. Government debt levels have ballooned since 2014, pushed up by wide budget deficits caused by the fall in oil prices. Although we see the pace of the debt build-up slowing, it will not reverse until 2021, when we expect the region to return to an aggregate fiscal surplus. Aside from Bahrain, the first USD bond maturities become due in 2021. We expect the region's economic recovery to continue, but pockets of political risk remain. A wider regional conflict would drive up the risk premium for oil and possibly affect physical flows of the commodity, as well as impact tourism and damage key infrastructure. SAUDI ARABIAVISITOR PROFILE X6,718 AVERAGE SPEND PER TRIP (SOURCE: US TRAVEL) 2659000 VISITORS TO U.S. IN 2016 UNITED KINGDOM The United Kingdom has been one of Newport Beach's longest and most important markets. With a longer history as a Newport Beach traveler, United Kingdom tourists continue to be a major visitor to the US and California. The preliminary estimates of quarterly GDP growth for Q4 2017 came in at 0.5%, above expectations. The upside surprise was due to a smaller than expected drop in construction output and a firmer outturn for the dominant services sector. The economy looks to have carried a reasonable momentum into 2018. The manufacturing sector continues to report strong results, buoyed by strong global growth and the boost to competitiveness from the 2016 depreciation of sterling. The enduring strength of global demand, combined with the better than expected performance in Q4 2017, has led US consumer spending to raise our forecast for GDP growth in 2018 to 1.8% from 1.5% in January. We expect growth to cool a little in H2 this year as a stronger pound causes the boost from net trade to fade and the impact of higher interest rates is increasingly felt. This will limit GDP growth to 1.6% in 2019. The key drivers to our short-term forecast are: Squeeze on household spending power easing gradually: CPI inflation accelerated from 1% in mid -2016 to 3.1% in November 2017, due to the impact of rising oil prices and the pass-through of the post - referendum depreciation of sterling. With nominal wage growth remaining subdued, consumers have endured a severe squeeze on their spending power. 12-61 Brexit uncertainty weighs on business investment: over the past two years business investment has grown by just 1% a year, having risen by almost 5% a year from 2010-15. Corporate profitability remains firm but investment intentions are subdued, with Brexit-related uncertainty weighing. Boost to net exports fades as sterling continues to strengthen: the combination of a weaker pound and a pick-up in world trade has strengthened export demand and we estimate that net trade lifted GDP growth by 0.8% points in 2017. We expect this to continue to boost GDP growth in the early part of 2018 but the support is then likely to fade, with the sterling continuing to rally (reaching $1.47 by end -2018). Tight fiscal stance: the squeeze on welfare spending noted above, along with other cuts to current spending and tax rises, means that fiscal policy will exert a drag on growth over the next few years. The government reduced the scale of austerity a little in the November budget, but forecasts from the Office for Budget Responsibility imply that fiscal tightening will drag on GDP growth in each year between 2018119 and 2022123, with the peak impact of 0.4% a year falling in 2018119 and 2019120. U.K. TRAVEL FORECAST 2021 CA 2021 FORECASTING VISITATION 7377 0 0 0 FOR CAST $1.12 BINVISITOR CAL FORNIAING U.K. VISITOR PROFILE $19525 AVERAGE SPEND PER TRIP 11 NIGHTS AVERAGE LENGTH OF STAY LUXURY TRAVEL SECTOR IN THE UK CONTINUES TO GROW OVER 30% OF TRAVELERS PLAN TO SPEND MORE ON TRAVEL IN 2018. (SOURCE: VISIT CALIFORNIA) The recent stock market correction and renewed volatility do not detract UN I T E D from the economy's strong fundamentals. The US economy appears set STATESto grow by 2.8% in 2018, with a 0.4 percentage point boost from the Tax Cuts and Jobs Act. With inflation moving closer to the Fed's 2% target, we continue to expect three hikes in the federal funds rate in 2018. Economic momentum indicators point to solid growth in 2018. Robust consumer outlays, solid business investment and moderate residential investment should support GDP growth of above 3% (annualized). The unemployment rate held steady at its 17- year low of 4.1% while wage growth firmed to 2.910 - the strongest annual pace since 2009. Overall, despite recent financial market stress, US economic fundamentals remain solid. As we recently highlighted, we view elevated asset valuations, political uncertainty and potential "growth exhaustion" in 2019 as risks to the outlook. US T R A V E L Monthly, the U.S. Travel Association releases the Travel Trends Index TR E N D S (TTI), providing an analysis conducted by Oxford Economics of current ND E X trends in travel demand, as well as a near-term outlook for the direction and pace of travel to and within the US. As reported in the January 2018 Travel Trends Index, US travel volume grew 2.2% in January 2018 compared to January 2017. Overall travel volume grew at a slightly slower year -over -year rate in January 2018 than in December 2017. International inbound travel expanded, while domestic leisure travel outpaced domestic business segment. 12-63 The following are some key highlights from the January 2018 report: The Current Travel Index {CTI) has registered at or above the 50 mark for 97 straight months, indicating that travel has expanded relative to the same month a year prior, as the industry enters its ninth consecutive year of expansion. The CTI was positive in January, registering 51.1. This is lower than the 6 -month moving average of 51.4. • International inbound travel slowed, yet remained in positive territory, registering 50.5 in January. The Leading Travel Index (LTI) continues to project an upbeat outlook in inbound travel, which has the potential to surpass growth in the domestic market through the first half of 2018. • Domestic leisure and business travel both grew in January, though domestic leisure outpaced domestic business. • The six-month LTI reading of 51.2 indicates that total US travel volume is expected to grow at a rate of around 2.4% through July 2018. Domestic travel is expected to grow by about 2.2%, while forward- looking metrics for international travel indicate a strong rebound. • Domestic leisure travel outpaced the business travel segment in January, as has been the trend. Forward- looking bookings and searches appear to be on an upswing, boding well for the domestic travel market through the first half of the year. Conversely, while room demand has been a strong contributor to growth, December and January still include hurricane recovery efforts in some areas, inflating true visitation. Despite this) US performance looks to be on solid footing. • International inbound travel increased once again in January, as a slightly weaker US dollar and an improved global economic backdrop make the United State a more attractive and attainable market for foreign travelers. U TRAVEL FORECAST Domestic travel in the US marked its seventh successive year of growth in 2017 with 1.9% growth. Leisure travel led the charge, as had been the trend, with a 2% increase over the prioryear, and air travel (+2.8%) continued to lead all transportation modes. Domestic business travel averaged 1.7% on the heels of a 0.8% decline in 2016; equity markets continued to surge and business investments firmed. Domestic leisure travel averaged 2.0% growth for the first half of the year, supported by upbeat consumer attitudes and solid labor market conditions. Air travel maintained its strength, registering 2.7°% growth through June, while growth in ground transportation picked up in comparison to the first half of last year (1.8% in H1 2017vs 0.8% in H1 2016). The US economy grew 2.3% in 2017 and is set to surpass this growth rate and be close to 3.0% in 2018. Conditions for a pickup in capital spending in 2018 look promising. Profits are strong, the dollar is weak and global growth is ramping up — all positive portents. This should all give boost to the business travel segment. The only wrinkle in the outlook is the growing uncertainty regarding trade policy, a saga that has yet to fully play out The short-term view remains favorable for the leisure segment as well. Personal income, employment, and consumption are all expected to be positive. Consumers are expected to continue to respond to a strong labor market and the prospect of higher incomes boosted by the tax cuts. A respite from rising energy prices will also continue to support strong consumer sentiment in 2018. This will all bodes well for the tourism sector, especially for the leisure travel segment Overnight travel surpassed day travel though the first half of 2017, but the opposite is expected for the final two quarters. Firming business investment will support accelerating overnight travel in 2018. The pace of hotel room night demand held steady in 2017 at about 2.0%, supporting similar growth in overnight travel. Day trips average about 1.9% growth in 2017. Global GDP registered 2.4% in 2016, the slowest since 2009, but it accelerated to 3.0% in 2017 and is expected to be even stronger in 2018, at 12%. This will be the strongest annual gain since 2011. Indicators suggest momentum in the Eurozone and emerging markets, though negativeglobal risks, including potential for sharp slowdown in China, a US recession caused by policy errors, and risks related to North Korea, remain. In Europe, a brighter outlook on domestic demand and little evidence that a strengthening euro is hampering recovery has improved the outlook for the Eurozone GDP. We estimate that overseas travel to the US increased 4.3% in 2017 with Asia leading growth with a 6.1% expansion. Latin America and Oceania both expanded modestly while losses from the Middle East and Africa were not as severe as 1-94 indicates. 12-65 DOMESTIC TRIPS IN US A Total Person Trips in the US ■ Rcomnights 2021E nmff�� 2020E nmff�� 2019E mmff�� 22904 2016F 1247.3 2248.8 2017 122-43 2016 mnff�� 0 500 1000 1500 2000 2$00 Millions OVERSEAS VISITORS TO THE US JAN -JULY 2017 WITH YOY GROWTH C:w. , UNITED KINGDOM nA33,7a;9 JAPAN 9"9 711 CHINA 7•r� G ERMANY BRAZI L - 4.778.300 SOUTH KOREA-6•u2,(m FRANCE4,333.017 CARIBBEAN 3.75v,773 AUSTRALIA MIDDLE EAST -Z';%763 INDIA j 2947,603 CENTRAL AMERICA M zm,sss ITALY = l a545,021 ARGENTINA ;M2•"'.193 COLOMBIA rZTG,49 SPAIN isL97k= NETHERLANDS .-A W224 SWEDEN -1,443A25 VENEZUELA=+•40429 AFRICA W=� SWITZERLAND M L256.737 TAIWAN 0W.- � a X5.09; '5.00L IRELAND 1.+45.352 ISRAEL _19M254 RUSSIA .et9,36d OM 20M 40M 60M 80M DOMESTIC PERSON TRIPS IN THE US (MILLIONS) Sawn % U.S. D*pL of Comn ", Natiaml Tro of & Tom am 06101 {NTT0),Wt C64Fo lm F:Feewer 2011 7012 2013 Z014 2015 2016 20%7 2018F 2019F 7020T 2071F TOTAL 1997.5 2030.3 2059.6 2109.3 2178.7 2206.5 2248.8 2332.5 2290.5 2375.4 2416.2 % chane 1.7 1.6 1.4 2.4 3.3 1.3 1.9 1.9 1.8 1.8 1.7 purpose Business 440.7 439.4 445.7 451.4 459.8 456.1 463.9 473.0 482.0 490.0 49$.3 °I Chan -1.3 -0.3 1.4 1.3 1.8 -0.8 1.7 2.0 1.9 1.7 1.7 Leisure 1556.8 1590.9 1614.0 1657.8 1718.9 1750.3 1784.9 1817.5 1850.5 1885.4 1917.8 change 2.6 2.2 ].5 2.7 3.7 1.8 2.0 1.8 1.8 1.9 1.7 Hotel room demand Room nights 1057.9 1086.6 1107.5 1152.2 1181.7 1200.3 1224.3 1247.3 1269.9 1292.9 1315.6 % change 4.9 2.7 1.9 4.0 2.6 1.6 2.0 1.9 1.8 1.8 1.8 Sawn % U.S. D*pL of Comn ", Natiaml Tro of & Tom am 06101 {NTT0),Wt C64Fo lm F:Feewer CALIFORNIA TRAVEL 0 U T L 0 0 K The California Travel & Tourism Outlook produced by Tourism Economics for Visit California in February 2018 projects 3.0% growth in total visitation to California in 2018, following slower increases of 1.9% in 2016-17. Overseas visits to California will grow by 4.1% in 2018, strengthening from weaker rates seen during 2016-17. Domestic visitation is expected to rise 3.0°% in 2018, following a 2.0% increase in 2017. Strengthening of all travel market segments will contribute to the pickup in domestic visitations in 2018. The pace of growth will speed up most significantly in the business segment, which will increase to 2.9% growth in 2018 from 1.6% growth in 2017. After significant fuel price increases in 2017, we expect fuel prices to stabilize in 2018, which should help support day visitor growth in range of 3.0% over the forecast horizon. After slower growth in 2016 and 2017, California visitor volume growth is expected to strengthen in 2018 on strong domestic economic fundamentals, particularly on the consumer side. A sturdy labor market will support solid consumer spending growth, which will help prop up demand for travel to California from US origins. After this year, domestic visitorgrowth will average around 2.8% over the forecast horizon. We view political uncertainty and potential "G DP growth exhaustion" in 2019 as risks to our outlook. On the international inbound side, a weaker US dollar and stronger demand drivers in key California source markets, such as Canada, Asia and Europe, will be the driving force in 2018 visitation growth. The extraordinary double-digit growth streak from China between 2010 and 2016 was broken by nonetheless still impressive 6.6% growth in 2017. The Chinese economygrowth will slow to around 6% in 2018 from around 10% in 2010. Considering this slowdown in economic growth, and the Chinese market saturation we are starting to see in California, we do not expect a return to double-digit growth over the forecast horizon. Growth in total inbound visits is expected to settle around 4.2% by 2020. California visitor spending grew by 4.8% in 2017, after slower growth in 2015 and 2016. The advance of lodging prices and hotel room demand in 2017 helped support a solid growth of 4.4% in room revenue in California. Higher gas prices, which increased by almost 11% in California in 2017, also contributed to growth in spending. Gas prices are expected to hold steady, and consumer price inflation is expected to pick up. A weaker dollar will make the US, and in turn California, more attractive travel destination to foreign travelers, whose buying power is also expected to improve. All these factors will help drive visitor 12-67 TOTAL VISITOR SPENDING IN CALIFORNIA 170 150 130 73 ?110 U 90 70 50 ■Tna1 Expenck. me - %Owq* 2016 2017 2018F 2019F 202OF 2021F 2022F OVERSEAS VISITORS TO CA JAN -JULY 2017 WITH YOY GROWTH CALIFORNIA TOURISM SUMMARY (ANNUAL % CHANGE) 1 2012 2013 CHINA 20T5 UNITED KINGDOM �a,neam 2W7 JAPAN sae�•aas 6% AUSTRALIA-s,�sa.isa 2021F SOUTH KOREA-szaazr� Total Visits GERMANY 4% FRANCE 4.8% MIDDLE EAST-34+7-soa 1.911. INDIA 1�� 335t•472 7% TAIWAN _zsa=•aso a BRAZIL _aa5a CENTRALAMERICA �zaaa$ab 0% ITALY BeL9s, SWEDEN as,na NETHERLANDS 9 .2x SWITZERLAND S PAI N t� uas air Domestic ISRAEL �sa�as -4% IRELAND e�o,csa COLOMBIA tsar ARGENTINA t76a,6�6 r.,.o.r�tORrcrd 6% RUSSIA.��.ar.�� .00x +s.aox AFRICA �i76 Total Visits CARIBBEAN aozoao 5.6% VENEZUELA 1X46+a 4.9% 2M 4M 6M 8M 10M 12M 14M CALIFORNIA TOURISM SUMMARY (ANNUAL % CHANGE) 1 2012 2013 1014 20T5 2016 2W7 201OF 2019F 207OF 2021F 2022F Total Visits I 3.1% 5.6% 3.5% 4.8% 1.9% 1.911. 3.0% 29% 2.8% 3.D7. 2.9% Domestic Total Visits 3.170' 5.6% 3.4% 4.9% 1.9% 2.0% 3.0% 2.8% 2.701. 2.97. 2.8% LaisureVis its 4.9% 6.8% 4.1% 5.3% 2.2% 7.1% 3.07. 3.1% 3.0% 3.1% 3.03E International Total 3.5'1. 4.5% 5.1% 3.6% 1.611. 0.4% 35% 4.1% 429: 4.3Y. 4.0% Total Expenditures t5B) 110.6 113.4 118.4 121.0 124.4 130.4 136.4 142.2 148.1 154.2 160.8 Y change 3.0% x.5% 4.51 2.2% 2.8-11 d.8% 4.6Y 4.3% 4 2Y. d.l l 4 35 Domestic 90.7 91.3 95.1 96.8 99S i 104.3 109.3 113.9 118.7 123.6 128_9 %change 2.7% 0.7% 4.2% 1.8% 2.9% 4.8% 4.7% 4.3% 4.2% 4.1% 4.3% International 19.9 22.1 23.3 24.2 24.9 26.0 27.1 28.2 29.4 30.6 31.9 %change 4.1% 1 11.1% 5.7Y. 3.9% 2.6% ! 4.7% 4.2% 4.1Y. 4.1% 4.0% 4,27. S..- T -i- Economics; DNS h, TN G66.1Id9,ne.ricl: CIC R.>Ir,.Ah, OTTI fint.rn.t .-N D..n Rurv.n, {Exp.ndiewl�l F = F --..r NEWPORT BEACH HOTEL OUTLOOK NEWPORT BEACH HOTEL OUTLOOK After declining for two consecutive years in 2016 and 2017, the Newport Beach hotel sector is set for strong performance in 2018. The industry sold 7% fewer rooms in 2017 than in 2015, and charged an average of 6% more per room night. Occupancy rates averaged 72% for the year in 2017, about 4% lower than the average of 76% in the previous three years. Source: STIR, Inc.; Tourism Economics F= Forecast AD R= Average Daily Rate R EV PA R= Revenue per available room NEWPORT BEACH HOTEL OUTLOOK, % CHANGE SUPPLY DEMAND OCCUPANCY REVENUE .. REVPAR 2012 884,395 638,151 72% $100,389,591 $157 $114 2013 885,036 635,166 72% $106,609,646 $168 $120 2014 885,125 662,640 75% $117,078,820 $177 $132 2015 885,125 684,583 77% $127,338,953 $186 $144 2016 885,125 675,000 76% $130,011,086 $193 $147 2017 886,101 636,926 72% $125,524,752 $197 $142 2018F 933,603 707,400 76% $144,293,178 $204 $155 2019F 933,603 722,255 77% $152,921,622 $212 $164 202OF 933,603 732,367 78% $158,784,025 $217 $170 Source: STIR, Inc.; Tourism Economics F= Forecast AD R= Average Daily Rate R EV PA R= Revenue per available room NEWPORT BEACH HOTEL OUTLOOK, % CHANGE Source: STR, Inc.; Tourism Economics F= Forecast AD R= Average Daily Rate REVPAR= Revenue per available room 12-69 SUPFLY DEMAND OCCUPANCY REVENUE ADR REVPAIR 2013 0.1% -0.5% -0.5% 6.2% 6.7°% 6.1% 2014 0.0% 4.3% 4.3% 9.8% 5.3% 9.8% 2015 0.0% 3.3% 3.3% 8.8% 5.3% 8.8% 2016 0.0% -1.4% -1.4% 2.1% 3.5% 2.1% 2017 0.1% -5.6% -5.7% -3.5% 2.3% -3.6% 2018F 5.4% 11.1% 5.4% 15.0% 3.5% 9.1% 2019F 0.1% 2.1% 2.1% 6.0% 3.8% 6.0% 202OF 0.1% 1.4% 1.4% 3.8% 2.4% 3.8% Source: STR, Inc.; Tourism Economics F= Forecast AD R= Average Daily Rate REVPAR= Revenue per available room 12-69 Following national and regional trends, the pace of Newport Beach hotel demand growth is expected to improve in 2018. Part of the decline in 2017 can be attributed to the conversion of two hotels, now branded as Hyatt Regency John Wayne Airport, Newport Beach and Renaissance Newport Beach. Both projects are set to be completed in 2018, which will help hying back the occupancy rate to 76%. On the supply side, the Lido House has opened, contributing to the 5.4°1 growth in supply in 2018. ANNUAL TOTAL HOTEL REVENUE $180,000,090 MRe..m- 4YOYG,-1,Rexe $160,000,000 $140,0130,000 I $120,400,000 1 a S100,000,00fl 0 = $80,000,000 Q $60,000,000 $40,000.000 570,000,0130 so .1OkM1 p1'� M1O•�'y ,rd�P M1O�y .t4�6 'La�1 O'.�{f 'V M1 M1gry AVERAGE HOTEL RATE ANNUAL PERFORMANCE 5230 ■ADR -d-YpY Growth Rate 12% $212 1217 $210 3204 9% $193 5197 S190 N-15177 $186 6% • $170 4168 $157 3% 5150 c) 0% T $130 " -3% 5110 -6% $90 $7'0 97L $50 •12% 2017 2013 2014 2015 2016 2017 2018F 2019F 2020F Strong economic fundamentals indicate further growth potential beyond 2018. By 2020, demand is predicted to reach 732,367 room nights sold. RevPAR (revenue per available room) will he driven by demand, but also by ADR (average daily rate) which will grow at an average annual rate of 3,21 over the next three years, 100% 907E 707E 60% Y 3 so% 40% 30% 20% 10% OCCUPANCY ANNUAL PERFORMANCE 111110=PMfley +YQY Growth Rota -3% 0% — — — — — — — — — 457: 2012 2013 2014 2015 2016 2017 2018F 2019F 2020F LEISURE TRAVELER FEEDER MARKETS • 5°% of overnight visitors • Nielsen Ranking: 8 • Households earning over $100,000: 650,000 • Daily Flights to SNA: 21 • Initiative Audience Concentrations: Affluentials, Well -Doers To reach potential visitors most effectively, Newport Beach & Company conducted a media market analysis to see where resources would best be utilized. Newport Beach & Company looked at visitation data to determine potential visitor markets. Other factors are considered including market cost efficiency and accessibility. • 19 of overnight visitors • Nielsen Ranking: 12 • Households earning over $100,000:432,000 • Daily Flights to SNA: 13 • Initiative Audience Concentrations: Affluentials, Well -Doers • 41% of overnight visitors • Nielsen Ranking: 2 • Households earning over $100,000:1,210,000 • Daily Flights to SNA: NIA • Initiative Audience Concentrations: Affluentials, Modern Family, Roam-ancers • 5.2% of overnight visitors • Nielsen Ranking: 29 • Households earning over $100,000: 645,000 • Daily Flights to SNA: NIA • Initiative Audience Concentrations: Affluentials, Modern Family, Roam-ancers • 7% of overnight visitors • Nielsen Ranking: 11 • Households earning over $100,000:335,000 • Daily Flights to SNA: 13 • Initiative Audience Concentrations: Modern Family, Roam-ancers 12-71 Newport Beach & Company divides our marketing feeder markets into two categories: primary and opportunity. Primary markets make up 60% of all overnight visitors to Newport Beach. They have strong awareness and can reliably convert marketing efforts into visitation. Within our primary markets, Los Angeles and San Diego provide the extra benefit of being a drive market, allowing for more marketing opportunities with shorter planning periods. • 4.6% of overnight visitors • Nielsen Ranking: 30 • Households earning over $100,000: 85,700 • Daily Flights to SNA: 6 • Initiative Audience Concentrations: Modern Family, Well -Doers • 7% of overnight visitors • Nielsen Ranking: 40 • Households earning over $100,000:141,000 • Daily Flights to SNA: 10 • Initiative Audience Concentrations: Modern Family, Roam-ancers Opportunity markets have less visitation, but have strong enough backing to be monitored. Their demographics support for co-op marketing campaigns, media relations, or expansion into a fifth media market beyond the primary. These markets should be used for specialized efforts that cater to those specific audiences. ■ PRIMARY MARKETS 0 OPPORTUNITY MARKETS • 4.6% of overnight visitors • Nielsen Ranking: 17 • Households earning over $100,000:287,000 • Daily Flights to SNA: 11 • Initiative Audience Concentrations: Roam-ancers, Well -Doers Sources: Destination Analysts; Nielsen; US Census Bureau; John Wayne Airport, Orange County, Nielsen Claritas Newport Beach offers a unique vacation destination to travelers—a beautiful CN1 P E T I T I Y E coastal retreat providing the perfect combination of affluence, quaintness, S casual glamour and attention to detail. Though nowhere else is Newport J E T Beach; it is important to understand the competitive landscape. Newport Beach & Company has identified top competitive leisure traveler markets: Santa Barbara, Santa Monica, Palm Springs, Beverly Hills, Huntington Beach and La Jolla. All the destinations are Southern California, small- to mid-sized markets with an emphasis on upscale to luxury accommodations. After a thorough competitive analysis, the destinations have many similar elements. They offer high-quality dining experiences, great shopping, upscale lifestyle, scenic beaches and a relaxing escape. Though each destination offers these to different extents, each of these destinations hold a similar position in visitors minds when planning a trip, validated by our digital audience tracking system. We monitor the performance of each of these destinations in both performance and marketing efforts. Over the past year, Newport Beach kept in line with the major performance metrics. Average Daily Rate continued to stay above most of the destinations. Newport Beach did lose some ground in occupancy rate, likely due to hotel renovations. 2017 COMPETITIVE HOTEL OCCUPANCY 2017 COMPETITIVE ROOMS AVAILABLE Palm Springs Santa Barbara = Palm Newport Santa HvnDngton to datla Beverly Santa Newport Beach springs Beach Ba+barc Beach Hill, Monica Santa Monica La J.117, 2017 COMPETITIVE i6Cu HOTEL RATES Hontingtan Beach ss•�o Beverly Hills s4oa 4 1,000 2,000 3,000 4,0{14 5,Ooo 6;oco $300 �n Ori � O •� ry G � 12-73 o 12-73 2017 NEWPORT BEACH VISITOR PROFILE 7.3M TOTAL VISITATION $1*2B VISITORSPENDING TOP VISITOR ACTIVITIES: VV BEACH DINING SHOPPING 95% SATISFIED WITH THEIR EXPERIENCE 297.31 AVERAGE DAILY SPENDING PER PARTY 5.5 AVERAGE NUMBER OF TRIPS NEWPORT BEACH VISITOR DEMOGRAPHIC 46 116.839 3.1 24.1% AVERAGE AVERAGE HOUSEHOLD AVERAGE TRAVEL TRAVELING WITH AGE INCOME PARTY CHILDREN LEISURE TRAVELER future map EXPLOIT STRENGTHS NATURAL RESOURCES GOVERNME NT & COMMUNITY MITIGATE WEAKNESSES TRAVELER PATTERNS • Short Length of stay • High rate of clay -trip versus overnight • Law winter occupancy PARKING AND PUBLIC TRANSPORTATION OPTIONS LIMITED IN -CI TYATTRACTIONS • Newport Harbor/Beaches DEVELOPMENT • State Beac1h Safe community • Back Bay — local estuary Clean, efficient airport (SNA) • CIL-an 6eaches Relativelyclose to LAX airport • Well-maintained infrastructure YEAR-ROUND OUTDOOR WEATHER CENTRAL SOUTHERN • Biking/Hiking CALIFORNIA LOCATION • Boating/Kayaking 450 RESTAURANTS, CELEBRITY CHEFS VISITOR OFFERINGS • Diverse accommodations HIGH-END UNI UE RETAIL,SHOPPING • Engaging activities AND BO UTIQ U E • Award-winning hotels and resorts • World-renowned events DIVERSE NEIGHBORHOODS • Nearby world -Mass attractions COMMUNITY RELATIONSHIPS BRAND -DEFINED DESTINATION .........• PREPARE FOR CONTINGENCIES OR THREATS WEATHER AND ENVIRONMENTAL HAZARDS ECONOMIC UNCERTAINTY UNCERTAIN POLITICAL CLIMATE COASTAL COMPETITION INTERNATIONAL CURRENCY EXCHANGE RATE FLUCTUATIONS MONITOR OPPORTUNITIES SHARING ECONOMY ... ..... .... . ... ... .. . .. .. ...... .. . .•••••••: TRAVEL BANS, LAPTOP BANS, VISA NEW AND REFRESHEI] HOTEL PROPERTIES APPROVALS, IMMIGRATION ISSUES EXPANDED VISITOR MARKETS • Niche audiences • International efforts • Business/Frequent Individual Traveler (FIT) • Second- and third -tier markets LEISURE /SALES PARTNERSHIPS RECOGNIZED EVENTS STATE -AND -NATIONAL TOURISM MARKETING EFFORTS MILLENNIAL TRAVELERS ECD AND PURPOSE -DRIVEN TOURISM VFR TRAVEL LIDO MARINAVILLAGE REVITALIZATION • Lido Marina Village • Lido House hotel VISITOR -TRANSPORTATION OPPORTUNITIES (TRO L LEY) TRANSPORTATION RELATIONSHIPS Ba16oa Island Trolley Airline opportunities and airport Metro and public transportation 12-76 WINTER LEISURE CAMPAIGN SPRING LEISURE CAMPAIGN WELLNESS WEEK IPW TOURISM WEEK ANNUAL MARKETING OUTLOOK DINNER CHRISTMAS BOAT PARADE NEWPORT BEACH FILM FESTIVAL NEWPORT BEACH JAll FESTIVAL NEWPORT BEACH RESTAURANT WEEK NEW PORT TO ENSENADA YACHT RACE PACIFIC WINE & FOOD CLASSIC 01:1:11:0 UK PRE-BAFTA PROMOTION July August September October Novem6c Earned/Patd Owned Earned/Paid Owned Owned Owned 72 FISCAL YEARS 2014-2020 DESTINATION BUSINESS PLAN Earned Paid December January February Marcie April May June Paid Paid Owned Earned Paid Paid awned Earned Owned Earned/Owned Owned Earned -/Paid Owned ===== Earned/Paid Owned Earned/Paid Owned Owned Paid Owned/Earned Earned/Paid INEWPORT$EACHANDC0.COM 73 OBJECTIVE leisure STRATEGY: traveler Move the needle! Results First! AN INCREASE IN LEISURE TRIPS THAT RESULT IN 42,000 ADDITIONAL LEISURE HOTEL - ROOM NIGHTS BOOKED AND $42 MILLION IN INCREMENTAL LEISURE TRAVEL (VISITOR) SPENDING TO NEWPORT BEACH. LAUNCH TARGETED, INTEGRATED MARKETING CAMPAIGNS Develop fully integrated, targeted marketing campaigns to attract visitors to Newport Beach during slow Periods greed errods) for tourism -related Newport Beach businesses (hotels, retail, attractions and restaurants) TACTICS: • Place strategic, paid -media buys to Promote Newport Beach on media channels relevant to potential travelers in targeted media markets to drive incremental visitation, spending, longer length of stay and repeat trips to Newport Beach. Utilize digital resources to push messaging to existing Newport Beach audiences. Develop Wellness Week promotion for the key need period during last two weeks of August that includes robust marketing campaign, special offers, events and other welfness-themed activities in the destination. Explore target audiences who are apt to travel during need periods such as a couple's getaway in late August and families on spring break and other holiday breaks. Typical need periods for the destination are winter (November -February) and spring (April -early June) Develop packages with hotel, retail, activities and dining partners to offer one-stop shopping vacation options during need periods. Use media relations to spread message through trusted media sources and influencers to Promote partners. l=ocus media relations to support and augment paid media by securing media coverage in markets where we place paid media. Maximize paid media exposure through vatue-added editorial and earned media coverage to create fully integrated campaigns. • Flan a quarterly events calendar to guide messaging, timing and placements. STRATEGY: CONVERT DAY-TRIPPERS INT❑ OVERNIGHT LEISURE VISITORS. Convert daytime visitors into overnight visitors in Newport Beach to increase incremental leisure -travel spending in the destination. TACTICS: • Develop a drive -market campaign focused on overnight visitation for local audiences. • Investigate incentive -based drive market campaigns and promotions to add additional benefits/value-adds to spend the night in the destination. • Create packages with hotel partners including a focus on activities, events, retaif and dining to convert day-trippers into overnight guests. • Educate locals on new destination features such as Lido Marina Village, Lido House and other new destination product offerings. STRATEGY: CONVERT EVENT ATTENDEES, MEETINGS ATTENDEES AND BUSINESS TRAVELERS INTO OVERNIGHT LEISURE TRAVELERS. Increase brand awareness, length of styy and economic impact of signature Newport Beach events and entice event visitors to stay overnight or longer. Also, increase attendance at meetings held and booked in Newport Beach at tourism business improvement district (TBID) hotel partners and promote extended sta s by marketing Newport Beach's appeal as o leisure getaway destination with an abundance o f activities and events. TACTICS; • Promote Newport Beach's signature event partners through integrated marketing efforts to reach potential visitors focusing on drive and fly markets based on each event's demographics and audience profile. • Continue growth, attendance and branding of Newport Beach's signature brand -defining events including Newport Beach Film Festival, Newport Beach Christmas Boat Parade, Newport Beach Wine & Food Festival, Hoag Classic, Hyatt Regency Newport Beach Summer Concert Series, Hyatt Regency Newport Beach Jazz Festival and other marquee events. • Develop hotel packages tied into brand -defining events to encourage overnight stays in the destination. • Partner with Newport Beach TV for all signature events to share with wider audience, with the intent to create a draw to Newport Beach for future events. • Develop pre- and- Post meeting hotel packages to encourage meeting attendees to attend their Newport Beach meeting and extend their stay in the destination to turn a business trip into a leisure getaway. • Create a meeting -planner toolkit that includes an online photo and video library, logos, pre -written destination copy, email templates, welcome letters, welcome videos and social media graphics, so meeting planners and hotels can promote their upcoming meetings in Newport Beach and in -turn build attendance and promote the destination. OBJECTIVE 2 leisure traveler STRATEGY: 4 Spark global passion for visiting - Newport Beach. Global First! �•- MAKE INTERNATIONAL VISITORS AND RELEVANT INFLUENCERS PASSIONATE ABOUT VISITING NEWPORT BEACH. MAKE INTERNATIONAL INFLUENCERS PASSIONATE ABOUT NEWPORT BEACH FOR THEIR CLIENTS, READERSAND VIEWERS. Educate international travel influencers 7uencers (media and travel trade) on the Newport Beach brand and drive incremental visitation from each target international market. TACTICS: Aw E7 • Develop integrated marketing, media relations and travel -trade _WT programs in the United Kingdom. • Work with Orange County Visitors Association (OC VA) and its offices in China and the Middle East to reach travel agents, tour operators, travel agencies and media who influence - travel- planning decisions for consumers in each region.- • Bring international travel agents, tour operators and travel media to Newport Beach for familiarization (FAM) tours to fully understand the destination and establish a personal connection when selling to travel clients and travel media. • Capitalize on U.S. Travel Association's I PW travel tradeshow in Anaheim in 2019. o Plan numerous pre- and -post Familiarization tours for travel media and travel trade either before or after the I PW tradeshow. o Host major tPW client event on the beach with Huntington Beach and Anaheim. o Host U.S. Travel Association's Chairman's Circle dinneron the beach at Crystal Cove. • Explore expanding into new global markets such as Canada. • Explore expanding footprint and marketing reach in existing international markets (China, Middle East and United Kingdom). • Build upon the success of the Newport Beach Film Festival U.K. Honours event and promotion to build brand awareness throughout the U.K. market. • Deploy consumer advertising campaign. in-store promotion and out -of -home marketing in the U.K. market timed with the U.K. Honours event. • Conduct media relations interviews, desk side visits and media events in London during the U.K. Honours week. • Hold travel -trade events and appointments with key tour operators and travel agents in the U.K, market. • Develop a comprehensive travel -trade program and portfolio of services. • Create in -language Newport Beach collateral pieces and videos for non-English speaking markets. • Explore international in -market travel -agent training and press visit options to best utilize resources to reach as many influencers as possible. • Develop a travel -agent training presentation to best represent Newport Beach to agents who have not experienced the destination. • Develop website landing page; travel -agent web content and e -Newsletter for the travel -trade market. OBJECTIVE 3 leisure traveler t STRATEGY: Take the Newport Beach destination brand story beyond 20201. Story First! INCREASE BRAND AWARENESS FOR NEWPORT BEACH THROUGH BOLD, BRAND -BUILDING INITIATIVES ON A GLOBAL SCALE THAT TAKE THE NEWPORT BEACH BRAND BEYOND TRADITIONAL DESTINATION MARKETING INTO TRUE DESTINATION STORYTELLING. USE DESTI NATION STORYTELLING TO ENCOURAGE AWARENESS AND ENGAGEMENT. Tell the destination brand story through all customer interactions with leisure travelers, intermediaries Gravel trade, wholesalers and tour operators) and consumer media, trade media and influencers. ]uencers. TACTICS: Destination storytelling via video, PR, user -generated content and social media Develop and "own" brand -defining, industry -specific style trends around a common theme, "Coastal Chic." Identify, promote and exploit three Newport Beach -only Coastal Chic styfe trends around the following industries: fashion, automotive and interior design/decor/architecture. Possibly add beauty, outdoor.. health and wellness as other industry verticals. Create sub -segment marketing campaigns, messages and content geared around highly important, influential micro -audiences: o Health/Wellness/Fitness/Nutrition/Outdoors/Spa ❑ Families (adults traveling with children, multi -generational travel, celebratory travel) o Romance/Wedding/Honeymoon (adults traveling without children) o Super-affluent/luxury market r o Visiting -friends -and -relatives (VFR) o Business Traveiers/Meeting Attendees: convert meeting attendees/business travelers to leisure travelers through extended stays or future destination visits • Create a long -format, web series film showcasing the Newport Beach lifestyle and destination. • Significantly expand video storytelling programming and video content and distribute on the NB-TV.com online lifestyle channel and all digital channels. • Focus tourism public relations, media relations and influencer strategy through a renewed focus on a!I forms of earned media. • Prioritize media markets and messaging to be the most effective while building national and international brand awareness. • Promote positive rankings, accolades and awards for Newport Beach as a tourism destination in influential publications, websites and media through pro -active -media CIL 12-82 OBJECTIVE 4 leisure STRATEGY: traveler Develop meaningful, personalized connections. People First! CREATE MORE PERSONALIZED, MORE EMOTIONAL CONNECTIONS WITH ALL LEISURE CUSTOMERS, INFLUENCERS AND INTERMEDIARIES TO DRIVE BRAND AWAREN ESS, BRAND ADVOCACY AND VISITATION. PERSONALIZATION, CUSTOMIZED MARKETING, CONTENT AND EXPERIENCES. Deliver heightened, more meaningful and highlypersonalized marketing messages. campaigns and content to theri ht customer with the right message at the right time through a mobile- and- digital �rst strategy utilizing enhanced customer propling, analytics and big -data solutions. TACTICS: • Continue to enhance and expand all metrics and analytics to better understand the destination's key customers through the use of big data, market research and qualitative and quantitative customer feedback. • Create and implement a new hi�hly personalized, mobile -based platform to match the right customer with the right destination experience at the right moment and right time. This highly customized mobile experience [mobile concierge] serves up destination content and messaging in precise and exact ways that match the customer's needs, wants and desires with destination attributes, features and benefits that fit that unique and specific customer. • Consider expanding usage of the new mobile concierge too[ to the meeting -attendee audience. ■ Transition mass email marketing and social media strategies into more personalized, micro -targeted email and social communications with customized messaging, delivery times and content tailored to a specific audience, target market or customer. • Develop a technology-based solution to welcome all Newport Beach visitors and meeting attendees with a personalized, custom welcome message and content. STRATEGY: CREATE EMOTIONALLY IMPACTFUL AND ENHANCED VISITOR EXPERIENCES. Connect with leisure travelers, meeting attendees and all visitors while they are in Newport Beach via one-to-one, personalized experiences either in-person or di italry to improve the visitor experience, which in turn results in repeat visitation, longer length of stay and word-of-mouth endorsements for Newport Beach. TACTICS: • Utilize all Newport Beach & Company-owned digital channels by developing in -market resources and sharing stimulating and useful content. e Develop and deploy an enhanced mobile experience customized to each visitors' unique desires and interests, o Share and post destination and visitor -generated content on Facebook, Twitter, Instagram, YouTube and other social media channels. o Provide visitors timely responses to social media inquiries. o Post up-to-date events, content, videos, blogs and special offers on VisitNewportBeach.com and all company-owned websites and social media channels. a Create website and blog content through engaging stories, photos and videos to meet and exceed visitor needs. Provide an extraordinary visitor experience at the Fashion Island Visitor Center. Provide in-person assistance, seven days a week from the Visit Newport Beach Visitor Concierge Team during open hours at Fashion Island. Stay informed on Newport Beach tourism activities, retail stores, attractions and restaurants to provide the best recommendations to visitors. Manage and update the visitor kiosk, which provides information, printed maps and attractions tickets. • Create engaging, up-to-date collateral pieces that help visitors plan their trip and guide them in -market while also promoting Newport Beach tourism partners. o Create the annual Newport Beach Official Inspiration Guide, a trip -planning and memento piece distributed to future travelers by request and in Newport Beach hotel rooms. o Produce an annual Newport Beach Official Neighborhood Guide & Visitor Map focused on Newport Beach neighborhoods with a detailed visitor map. o Provide opportunities for Newport Beach partners to advertise in Visit Newport Beach collateral. o Distribute collateral to prospective visitors through fulfillment services, in -market displays, Visit California Welcome Centers and local concierges. o Develop niche -market collateral such as Guide to Do& -Friendly Newport Beach, Wedding Guide and other publications to cater to unique, niche audiences. 12-84 CUSTOMER -BASED DESTINATION BUSINESS PLAN MEETING PLANNER Newport Beach & Company and Visit Newport Beach, Inc. jointly present this fully integrated group sales, meeting services, marketing, digital marketing, public relations and communications plan to attract meetings and subsequent economic impact to Newport Beach and its Tourism Business Improvement District (TBI D) hotel partners for the 2019 and 2020 fiscal years. Newport Beach & Company and Visit Newport Beach, Inc. worked as a unified, customer -focused, cross -functional team to develop this integrated business plan to meet or exceed the $60 million in economic impact goal. Together, with the challenges set by a changing local hospitality landscape, an increasing role of intermediaries in the meeting -planning process, and an ever-increasing charge to further establish the value of partnership with a DMO, our sights are set to go "Beyond 2020" with this two-year business plan. With the internal mantra, "Beyond 2020," Newport Beach & Company and Visit Newport Beach, Inc. plan to think in new, innovative ways to take the Newport Beach brand as a premier meetings destination to even greater heights. The cross -functional, sales and marketing teams developed this integrated business plan for the meeting planner customer segment with a management -by -objectives approach where objectives are quantifiable goals, strategies form the strategic approaches to reaching the benchmark objectives, and tactics are projects that support overarching strategies. $o FISCAL YEARS 2019-2020 DESTINATION BUSINESS PLAN 12-85 BEYOND 2020 INITIATIVES OBJECTIVEO 1 'K — t c �, Frit! MOVE THE NEEDLE. Generate $60 million or more in group/meetings-related economic impact to Newport Beach. OBJECTIVE 20 �D64fimt'l BE GLOBAL. GO GLOBAL. Grow business and meetings bookings from international markets. OBJECTIVE 3 Srbj frvO. DESTINATION AND VISIT NEWPORT BEACH STORYTELLING. Tell the destination brand story and the value proposition story of working with Visit Newport Beach. OBJECTIVE 4O �awtiv,►S�FlMtI PERSONALIZATION TO MEETING PLANNERS. Deliver heightened, more meaningful and highly personalized sales and marketing connections and communications to meeting planners. MICRO -AUDIENCES ��•�:�z•�:�r� 4�11IZ149W .r.la:R1 • ASSOCIATION MEETING PLANNERS • SMERF MEETING PLANNERS MICE PLANNERS (MEETINGS, INCENTIVES, CONFERENCES AND EXHIBITS) • FICP PLANNERS (FINANCIAL AND INSURANCE CONFERENCE PLANNERS) • PHARMACEUTICAL PLANNERS (PHARMA) �dam II X91171.i9'/ii14:1i1►Cr7»1►1►1�:F•�C•7a�'I_1►1KA11101W • NEWTARGET INDUSTRIES: FASHIONIBEAUTYILEGALIAUTOMOTIVE • INTERNATIONAL MEETING PLANNERS(CHINAICANADA) Ai:1411►Cr7111:111914*1 NEWPORT BEACHANDCO.COM 81 MEETING PLANNER research Meetings and conferences (groups) provide an important source of revenue both nationally and to Newport Beach. A significant portion of the meetings business is generated by destination -marketing organizations. Looking at trends and forecasts helps guide meeting planners when choosing a destination; hotels to accommodate planner preferences; and destination- and hotel -sales teams when attracting clients. ROOM NIGHTS BY REGION 2017 Southwest West (CO/NV/UT) (AZ/NM/TX) International 3/0 1% 2% I s North West 5% ►outheast &AUGA/M 3% 12-87 Group business brings valuable revenue to the accommodating hotels through roam and meeting space bookings and to the destination - marketing organizations through transient occupancy taxes CTOT) and tourism business improvement district CTB I D) assessments, Additionally, groups bring business to local establishments, including restaurants and attractions to provide attendees a memorable experience. NEWPORT BEACH GROUP ROOM NIGHTS ■ Visit Newport Beach Bookings 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 2012 2013 2014 2015 2016 2017 NEWPORT BEACH HOTEL ROOM DEMAND (ROOMS SOLD) ■ Meetings ■ Transient 202OF 2019E 2018F 2017 2016 2015 2014 GR0UP MEETINGS research The group market is an important component of hotel demand in Newport Beach, representing 28% of all rooms sold in 2017. After the 2016 and 2017 declines, demand is expected to recover in 2018. The group segment is expected to sell 193,513 room nights in 2018, an increase of 8.8% over 177,777 room nights sold in 2017. Once the demand stabilizes in 2018, more modest pace of growth closer to the historic trend is expected in 2019 and 2020. NEWPORT BEACH HOTEL OUTLOOK (GROUP/MEETINGS 'ROOM 2012 DEMAND 178,277 3.6% 4.5% $158 $28,127,218 2013 179,845 $163 $29,390,861 2014 182,166 $169 $30,728,919 2015 185,864 $185 $34,403,306 2016 184,701 $193 $35,661,834 2017 177,777 $196 $34,861,849 2018F 193,513 $202 $39,143,092 2019F 196,764 $209 $41,161,880 202OF 198,968 $214 $42,521,947 Source: STIR, Inc.; Tourism Economics F- Forecast ADR= A—rage Daily Rate NEWPORT BEACH HOTEL OUTLOOK, % CHANGE 2013 .. . 0.9% 3.6% 4.5% 2014 1.3% 3.2% 4.6% 2015 2.0% 9.7% 12.0% 2016 -0.6% 4.3% 3.7% 2017 -3.7% 1.6% -2.2% 2018F 8.9% 3.2% 12.3% 2019F 1.7% 3.4% 5.2% 202OF 1.1% 2.2% 3.3% Source: STIR, Inc.; Tourism Economics F= Forecast ADR= A—rage Daily Rate In terms of revenue, groups represent a slightly lower share as transient demand tends to command a stronger rate premium. However, the difference in Newport Beach is relatively slight: group ADR averaged 1.6% less than the overall market last year. Nationally, US group ADR ($295) averaged 12% lower than transient ($249) within the luxury and upper upscale classes. AVERAGE HOTEL GROUP RATE ANNUAL PERFORMANCE $230 ■ADR YOY Growth Rate t21 5209 $214 5210 52O 2 9% $196 $143 $140 '' 5185 b% $ 5i61 $170 $158163 3Y. n $154 ' 0% Z $130 = 3 -3% z $110 9 -6% S90 $76 -9% $50 -121 2012 2013 2014 2015 2016 2017 2018F 2019F 202OF ANNUAL GROUP HOTEL ROOM DEMAND 220,000 12% 200,000 1x6.000 r ro 160,000 E O 140,000 120,000 W Demand YQY Growth Rate 9% 6% 3% a 0% C1 i T .:J -3% -6% -9% 100,000 -127. 2012 2013 2014 2015 2016 2017 2018F 2019F 202OF MEETING PLANNER future map MITIGATE WEAKNESSES LIMITED MEETINGAN D BALLROOM SPACE AT HOTELS NO CONFERENCE CENTER NO CENTRAL, WALKABLE NIGHTLIFE DI R ECTLY ACC ESSI 6 LE FROM MEETING SPACE LIMITED ORANGE COUNTY AIR ACCESS TO SOME MAJOR MARKETS LACK OF VARIETY OF HOTEL PROPERTIES- BOTH IN TERMS OF BRAND FLAGSAND ALSO TYPE OF PROPERTY (NO TBID FIVE-STAR RESORT PROPERTIES, BEACHFRONT, ECONOMY GROUP HOTELS) EXPLOIT LIMITED NUMBER OF UNIQUE, STRENGTHS OFF-SITE VENUES FOR LARGE GROUPS ......•.............................................. PERCEPTION OF BEING TOO EXPENSIVE EXPERIENCED INTERNAL SALES STAFF NO ALCOHOL PERMITTED ON ANY BEACHES FOR OFF-SITE MEETING EVENTS REFRESHEDINEW HOTEL PRODUCT TH I R D -PARTY ACCOLADES DESTINATION APPEAL BOUTIQUE -DESTINATION TREND SMALL- TO MEDIUM-SIZED GROUP IMPORTANCE MILD,YEAR-ROUND WEATHER AIRPORT ACCESSIBILITY NEWPORT HARBOR BEACHES OCEAN 12-91 ................... O .... OMONITOR OPPORTUNITIES EMERGING NEW TSID PARTNERS AND REIMAGINED PARTNERS INCREASED CUSTOMER UNDERSTANDING OF DESTINATION LOCATION EXPANDED AIRLIFT NEWLY DEFINED `COASTAL CH IC" BRAND VERTICALS: FASHION, AUTOMOTIVE, ARCH ITECTUREIINTERIOR DESIGN, BEAUTY, OUTDOOR/WELLNESS AMPLI Ff ED GROUP MARKETING Digital marketing, improved brand messaging, audience -specific messaging PREPARE FOR CONTINGENCIES OR THREATS LOCAL COMPETITION, HOTEL UPGRADES, NEW HOTELS ANDMEETINGVENUES THI RD -PARTY COMMISSION STRUCTURES HIGHER HOTEL OCCUPANCIES DRIVI NG OUT GROU P AVAI LABI LITY RISING GROUP RATES SOURCE PLATFORMS MAKE IT EASY TO CIRCUMVENT DMO NATIONAL POLITICAL INSTABILITY ECONOMIC UNCERTAINTY H U RDLES TO INTERNATIONAL ACCESS INTO THE UNITED STATES U.S. INTERNATIONAL PERCEPTION/I MAG EI BRAND DIMINISHING July August September October Navemb LUXURY MEETING SUMMIT HELMSBRISCOE EVENTS MPI EVENTS SITE EVENTS CONFERERNCE DIRECT CDX IMEX CALSAE EVENTS GLOBAL PHARMACEUTICAL & MEDICAL MEETINGS SUMMIT DESTINATION SHOWASE �]11:I1;3.`T1;Ef]:iJ; MEETINGS INDUSTRY COUNCIL 88 FISCAL YEARS 2019-2424 DESTINATION BUSINESS PLAN December January February March April May June NEWPORTBEACH ANOCO.COM 89 OBJECTIVE meeting planner STRATEGY: Move the needle! Results First! GENERATE $60 MILLION OR MORE IN GROUP/ MEETINGS -RELATED ECONOMIC IMPACT TO NEWPORT BEACH. FIND AND QUALIFYNEWAGCOUNTS TOADDTOOURACTIVE DATABASE OF PRODUCING ACCOUNTS, GAINING MORE TRACTION IN OUR GEOGRAPHIC AND VERTICAL MARKETS. TACTICS: • Stay involved in key industry organizations to build database and relationships with 9ualified Planners. • Use industry membership lists, attendee rosters, Linked In, and our own customer -relationship -management database far ongoing prospecting. • Continue detailed funnel review meetings with TBID partners to share contacts and collaborate on advancing the sale. • Continually evaluate our target accounts, adding new intel and keeping our active selling time disproportionately focused on those accounts. • Diligently follow up on new contacts made from all client -facing initiatives. • Work with Strategic Database Research as a prospecting partner. STRATEGY: INVEST IN SELECT TRADESHOWS THAT DRAW THE PLANNER AUDIENCE WE SEEK FOR NEWPORT BEACH'S OF TBID HOTEL PARTNERS. TACTICS: • Identify tradeshows that have most qualified planners and deliver ROI. • Invite TBID partners to participate for valuable introductions and face -time with key planners. • Sponsor select shows for added visibility and enhanced presence (stage time, best floor real estate, etc.). • Bring branded gift items and collateral that reinforces our coastal chic destination brand. • Find new ways to draw traffic (e.g. validate parking at show for planners who come by for visit). • Bring large "Crystal Cove Beach Party" booth with open bar whenever possible. • OFFer best booth prize at show: private air#ine lounge membership. STRATEGY: HOST CLIENT EVENTS IN SELECT DESTINATIONS TO ENGAGE CLIENTS WITH VISIT NEWPORT BEACH AND WIN THEM OVER FOR RFP SOURCING. TACTICS: Plan compelling client events that meet requirements for ease of location, compelling client take -away (Kendra Scott,jeweIry), open-ended timingand brand compatibility. ■ Use destination branding throughout each event to bring the destination to our clients. Plan client events in concert with sales trips and tradeshow travel for better economic ROI. Encourage TBID participation for introductions and excellent quality time. STRATEGY: CREATE SALES PROMOTIONS TO DRIVE LEADS, RFPS AND CONVERSIONS TO BOOKED BUSINESS. Create targeted marketing and sales promotions to drive interest, leads and requests for meetings proposals. TACTICS: • Continue year-round promotions and explore targeted, need -Period Promotions to impact booked meetings either year-round or during targeted times of year when hotels need group business: o Continue successful gift card promotion for all qualified RFPs that meet certain meeting requirements. ❑ Continue very successful free VIP airline lounge/wireless headphone incentive to targeted groups meeting specific RFP requirements. ❑ Target new business opportunities with extra benefits/gifts/incentives (not discounting existing business). ❑ Give incentives to the organization/company or to the organization's charity, not the planner. • Explore the possibility of creating a meetings rewards progra m to reward and incentivize repeat business and repeat bookings with Visit Newport Beach. • Evolve highly successful, themed client events into a new experiential event concept to lure meeting planners to sates events in key markets throughout the United States. STRATEGY: PURSUE HIGH -IMPACT BUSINESS. Pursue high. -impact meetings business to deriver higher -priced, longer length -of -stay group meetings prospects to TBID hotel partners. TACTICS: • Continue conversation with TBI D partners regarding their key customer profile in the group meetings segment. • Work with T B I D hotel partners on time -of -week, seasonality and need periods far group meetings business. • Proactively pursue account directors' target accounts (cherry pick accounts identified in each market with most desirable programs). • Seek Prospects that offer longer Lengths of stay and higher revenue, particularly long-haul markets tike the eastern part of the United States. • Expand efforts to attract high -yield, niche -market business such as financial- and- insurance conference planners (F1CP). • Customize booking incentives to encourage desirable group arrival and departure patterns. • Utilize the search parameters in the destination -marketing industry's MINT database to find need -period groups. • Host small familiarization (FAM) tours for accounts with high -impact programs. • Target tradeshow and other client -facing opportunities on Atlantic seaboard and with identified vertical markets. • Find new ways to draw traffic (e.g. validate park in$ at show for planners who come by for visit). • Bring large "Crystal Cove Beach Party" booth with open bar whenever possible. • Offer best booth prize at show: private airline lounge membership. OBJECTIVE 2 meeting planner STRATEGY: Be Global. Go Global. Global First! GROW BUSINESS AND MEETINGS BOOKINGS FROM INTERNATIONAL MARKETS. CONTINUE SUCCESSFUL MICE PROGRAM IN CHINA. Target the meetinggs, incentives, con ferences and exhibits (MICE) market in China through a partnership with Urange County Visitors Association (OCVA). TACTICS: • Continue to support and Promote 0CVA's China MICE Program through in -market representative firm, AVIAREPS, in China with offices in Shanghai, Beijing and Guangzhou. • Support inbound, destination famiiiarization (FAM) tours from group MICE opportunities from China. • Attend annual OCVA China Sates Mission with direct sales calls, appointments, media interviews and Presentations in multiple China cities to potential clients. • Work with Strategic Database Research as a prospecting partner. STRATEGY: EXPLORE THE MEETINGS MARKET IN CANADA. "0 CANADA!" Target Canadian -based meetingg planners,and groups with marketing direct sales and event promotions to drive incremental, international meetings bookings in marketing, Beach. TACTICS: • Expand direct -sales outreach to Canadian meeting planners who book meetings business that would be ideal for Newport Beach TBID hotels. • Conduct sales calls in key Canadian markets with top, potential clients. • Build connections, relationships and dialogue with potential clients in Canada at three Canadian trade shows: Incentive Works, FICP Canada and Ignite. • Proactively pitch meetings -related story ideas and news to Canadian meetings trade media. • Create a combined meetings/leisure client event in Toronto showcasing the Newport Beach destination to top Canadian meetings clients, travel -trade clients and consumer/trade media in Toronto. • Partner with Visit Newport Beach's leisure -marketing international initiatives in Canada wherever possible to save resources and make a larger impact. 12-97 OBJECTIVE 3 meeting planner STRATEGY: Destination and Visit Newport Beach storytelling. Story First! TELL THE DESTINATION BRAND STORY AND THE VALUE PROPOSITION OF WORKING WITH VISIT NEWPORT BEACH. USE DESTINATION AND VISIT NEWPORT BEACH STORYTELLING TO BUILD DEST]NATIONISALES TEAM BRAND AWARENESS INCREASE LEADS AND DRIVE INCREMENTAL MEETINGS BOOKINGS IN NEWPORT BEACH. Tell the destination brand story through all sales and marketing customer interactions with meeting Planners. TACTICS: • Destination storytelling: Tell the destination's meetings story through all forms of communication and customer interactions: tradeshows, sales calls, client events, video, Public relations, email marketing, content and social media. Advertising and Brand Building ❑ Create and fully integrate the meetings brand story, brand elements and brand campaign into all customer - facing communications, marketing, tradeshows and digital efforts. o Develop a strategic, customer -focused marketing campaign to reach meeting planners at all Phases of the decision cycle to: o Generate Positive brand awareness of New Port Beach as a Premier meetings destination. ❑ Promote the customer -focused Group Sales team's excellent services to assist clients with booking and servicing their meetings in Newport Beach. ❑ Promote the Newport FOLIO of TBJD hotels as a Portfolio of amazing meetings hotel Properties in an idyllic meetings destination. ❑ Develop and "own" brand -defining, industry -specific style trends around a common style of "Coastal Chic." Identify, promote and exploit three Newport Beach -only Coastal Chic style trends around the f❑Ilowing industries: fashion, automotive and interior design/decor/architecture. ❑ Refine the impact of our multi - sensory, fully branded tradeshow booth presence to further tell the Newport Beach story. ❑ Create fully branded, custom digital presentations incorporating giveaways and a compelling script with key messaging. ❑ Identify untapped markets: Create sub -segment marketing campaigns, messages and content geared to highly important, influential micro -audiences to reach untapped markets: ❑ Explore and tap into destination -related industries such as: ❑ HealthlwelIness (fitness, outdoors, wellness, spa, golf, action sports and activewear such as LuIufemon) o Cosmetic/beauty ❑ Legal ❑ Capitalize on our harbor—our destination's greatest asset—through a targeted approach to maritime -related groups/companies. ❑ With new luxury meetings product in the TBID portfolio, explore higher -rated group business. Earned Media, Communications and Media Relations o Create a combined meetings/leisure client event in the Northeast and Mid -Atlantic showcasing the Newport Beach destination to top meetings clients, travel -trade clients and consumer/trade media. o Potentially partner with sister city, Newport, Rhode Island, on a combined meetingslleisure event targeting top meetings clients, travet-trade clients and consumer/trade media. o Partner with Visit Newport Beach's leisure -marketing initiatives wherever possible to save resources and make a larger impact. o Collaborate with Leisure Marketing on media missions in key markets targeting consumer and meetingsl6usiness media. o Develop a corporate social responsibility [CSR] program for groups and Visit Newport Beach, Inc. to give back to the community. a Expand earned media outreach to key meetings industry influencers, business media and trade media to tell the Visit Newport Beach meetings story through all earned media channels. o Develop current roster of top destination competitors nationally and update Future Map/SWOT analysis regu#arly to better address how to lead in our competitive set. o Challenge our dedicated PR team to Done in on compelling media opportunities as well as initiate familiarization tours and visits from key meetings industry media entities and influencers. o Tell the story of earned meetings, hotel and DMO industry awards and rankings. Digital Marketing and Video Storytelling a Create a new meetings website rich with planner and attendee content. o Continue successful social media messaging, blogs and email marketing to meeting planners. o Build a meeting -planner toolkit that includes a refreshed photo and video Iibra ry, logos, pre -written destination copy blocks, email templates and social media graphics, to assist meeting planners and TBI D hotel partners in promoting upcoming meetings in Newport Beach and in turn build attendance. o Develop a fully branded collection of marketing materials for conference services targeting meeting attendees and inspiring longer stays and engagement in various in -destination activities. o Significantly expand the use of video storytelling through all marketing, communications and direct sales interactions to showcase the destination's meetings brand, assets and meetings product in new and unique ways. o Create and deploy a dynamic, user-friendly, app -based meeting -planner guide, empowering the team to give customized site collateral options and a more modern, exciting presentation of key destination information. o Create customizable templates within email service provider. ExactTarget, incorporating key messaging and targeted strategies for success. o Gather testimonial reviews from meeting planners with positive experiences in Newport Beach toincorporate all of the above. o Implement consistent servicing [before and after meetings are held in Newport Beach. o Create a quarterly ern aillblog that engages customers (9u1zzes, vote on favorite recipes, pick the new spring cocktail and other engaging topics). These tactics will bring a more humanisticlactive-engage ment approach to create a relationship and desire to experience Newport Beach, remembering that engagement is key to retention. o Educate planners on new destination features 'including the newest TB I D property, Lido House, and all of the newly rebranded and renovated TBID hotels. o Create new augmented -reality and virtual -reality experiences to provide real-life destination experiences for meeting planners to understand the destination from a remote location (virtual site visits). OBJECTIVE 4 meeting planner STRATEGY: Personalization to meeting planners. Planners First! DELIVER HEIGHTENED, MORE MEANINGFUL AND HIGHLY PERSONALIZED SALES AND MARKETING CONNECTIONS AND COMMUNICATIONS TO MEETING PLANNERS. DELIVER TARGETED COMMUNICATION TO QUALIFIED MEETING PLANNERS THROUGH ALL SALES FUNNEL STAGES. Establish fully integrated, targeted -market +n communications to support tradeshow and event opportunities, sales incentives and key -market opportunities. TACTICS: • Continue to enhance and expand all metrics and analytics to better understand the meeting destination's key customers through the use of big data, market research and qualitative and quantitative customer feedback. • Capture Personal information on planners such as birthdays, anniversaries and more, so sales and marketing team can recognize key milestones individually. • Design customized, branded direct -sales initiatives to address key audsences. • Revitalize ongoing RFP promotion by creating more compelling, value -add offers. • Revamp pre-and-post tradeshow communications at every touch point, including personalized invitations and custom follow-up pieces. • Create memorable, creative follow-up mailings for post -event follow-through, including branded keepsakes and themed collateral with a consistent tie-in for future follow-up and rewards. • Deploy in-depth, multi - level survey of meeting planners for further sales and marketing research develop and strategic planning. • Create a multi -touch point, progressive gift campaign targeting select clients to advance relationships and pursue high-value RFPs. • Transition mass email marketing and social media strategies into more personalized, micro -targeted email and social communications with customized messaging, delivery times and content tailored to a specific audience, target market or customer all personalized from unique Visit Newport Beach sales professionals. • Develop a technology-based solution to welcome all Newport Beach meeting attendees with a personalized, custom welcome message and content. . 1 STRATEGY: MAXIMIZE PAID INDUSTRY PARTNERSHIPS. Maximize ROl of paid partnership programs with third -party organizations as well as other A industry alliances, such as HelmsBriscoe, Conference Direct, Cvent and other entities. TACTICS: • Explore additional high -impact sponsorship opportunities at one or two high-profile tradeshows where large Portions of the signage and branding throughout the tradeshow promote Visit Newport Beach. • Optimize and enhance Visit Newport Beach supplier profiles on partner search platforms, utilizing branded language and fresh, compelling imagery. • Establish a customized, fully branded outreach welcome Process for new associates. • Capitalize on full complement of opportunities available with paid partnerships, spanning custom editorial, targeted incentives and unique digital content. • Utilize strategic report metrics to build on key initiatives and client groups. • Leverage opportunities, where avaifable, to participate in and/or sponsor third -party internal meetings and events. • Implement early engagement strategy to onboard planners new to their third -party organization highlighting advantages of partnershipwith Visit Newport Beach, Inc. • Invest in destination Partnerships with third -pasty, meeting -planner organizations such as HelmsBriscoe, ConferenceDirect, Experient, Prestige, etc. Commit to leverage all benefits with these destination partnerships (e -blast communications, intranet presence, Linked In, Instagram, etc.). • Maintain strong presence at all third -party conferences and events open to suppliers. • Secure third -party programs in the destination where possible (host third -party conferences in Newport Beach, so the Group Sales team can showcase the destination to this audience]. • Launch a third -party Promotional marketing campaign to third -party meetings organizations that includes direct mail, digital marketing, incentives and visits to the destination when applicable. • Develop a campaign to garner nominations/votes from third -party planners to be awarded top destination -marketing organization partner designation(s) at their annual meetings beginning at least four months before their annual meetings. • Take photos of associates with the Group Sales Team and TBI D hotel partners when the third -party meeting planners are in the destination an site visits. Encourage those planners to post those photos on their Intranet sites as well as other social -media platforms. • Create Group Sales team's personal biographies to highlight the team's experience, strengths and stroma Knowledge base. For example, third -party organizations promote their associates with customized biographies on each associate. Group Sales would develop similar biographies on each Group Sales professional at Visit Newport Beach, Inc. th., i= a w°r} eog°eRc +for where Ler °�r ewd,d wine ng 8r,wi eRe� cr 'elf °m^• •nd Rp=isi7i[y efl vis IpUJ? hFr wPsales eeam Pull foan�vA+fn oamP+eNo r�+18 [FFORrl Ma FSS 1�Ytt bhp ExpFN+ASF tk -, `p+eVr°Be+Re, F°r ..prP� ewd ��r�per� 1 °��qg ',Br p rba �nFPire �,� Prov Hp Y P adlp he : . end W F 4 F poll 0, �opr + +y rll EYD y%. °epi HD plp7i°� 'M�rn +NDN - [r/yB M1l.i expo*rFSi CUSTOMER -BASED DESTINATION BUSINESS PLAN LOCAL COMMUNITY This integrated marketing, communications and advocacy plan creates awareness of Newport Beach & Company and its six unique, standalone business units as a community -marketing agency for the City of Newport Beach, California. Newport Beach & Company demonstrates the value of tourism, meetings industry, destination branding and strategic marketing to local residents, partners, City of Newport Beach, City Council, civic organizations, hotels, businesses, merchants associations, regional destination -marketing organizations, Orange County Visitors Association and other regional/local influential community stakeholders. Additionally, this planning team's charge is to establish Newport Beach & Company as the community resource for what's happening in Newport Beach. Its six subsidiary business units include: Visit Newport Beach (tourism/leisure), Visit Newport Beach (meetings/group), Newport Beach TV (government -access television channelftelevision studio), Enterprise Newport Beach (merchant associations/economic development), Dine Newport Beach (Newport Beach Restaurant Association) and Celebrate Newport Beach (brand -defining events). Newport Beach & Company will create awareness and positive perceptions about tourism, the company, its staff and its board of directors through the following integrated business plan. This plan encompasses the following four initiatives to generate awareness of Newport Beach & Company and the economic value of tourism and meetings to Newport Beach: • Expand local community and partnership benefits, opportunities, content, events, outreach, marketing and messaging. • Grow successful community -marketing organization model. • Empower local residents and community leaders to drive economic impact. • Increase hospitality and service standards for frontline employees and preferred partners. Through its unique business unit structure, Newport Beach & Company serves as a community -marketing agency providing diversified marketing, group sales, sponsorship, event planning and brand -building services to drive economic development for the City of Newport Beach, Tourism Business Improvement District (TB ID) hotel partners, Newport Beach Restaurant Association, Balboa Village Merchants Association, Balboa Island Marketing, Inc. and Newport Beach TV. Newport Beach & Company also serves as a community -marketing agency and provides marketing, public relations, sponsorship, event planning and brand -development services to increase attendance, enhance the customer experience and promote the overall Newport Beach brand for signature events in Newport Beach. Newport Beach signature events include but may not be limited to: Newport Beach Christmas Boat Parade, Newport Beach Film Festival, Newport Beach Wine & Food Festival, Newport Beach Restaurant Week, Hyatt Regency Newport Beach Jazz Festival, Hyatt Regency Newport Beach Summer Concert Series and Newport -to -Ensenada International Yacht Race. With the internal mantra, "Beyond 2020," Newport Beach & Company plans to engage the local community in new, innovative ways to promote the value of tourism, Newport Beach & Company and the Newport Beach brand to even greater heights. The cross -functional planning team developed this integrated business plan for the local -community customer segment with a management -by -objectives approach where objectives are quantifiable goals, strategies form the strategic approaches to reaching the benchmark objectives, and tactics are projects that support overarching strategies. 98 FISCAL YEARS 2019-2020 DESTINATION BUSINESS PLAN 12-103 BEYOND 2020 INITIATIVES OBJECTIVE1O Turis#L, INctirg% a4 1>arbwrv, f Irst]. ELEVATE THE VALUE OF NEWPORT BEACH & COMPANY, ITS PARTNERS AND TOURISM TO THE LOCAL COMMUNITY. Increase the local community's awareness of the economic value of tourism and meetings to Newport Beach, emphasizing the importance of Newport Beach & Company, its business units and all of its tourism partners as drivers of economic development to the destination. OBJECTIVE (DCDkVQVLUKitt�.FiM-t! COMMUNITY -MARKETING ORGANIZATION OF THE FUTURE. Now in its fifth year, continue to grow, evolve and expand the entrepreneurial, community -marketing organization model at Newport Beach & Company through its unique business unit structure encompassing community -wide marketing, branding, public relations, digital marketing, social media and sponsorship acquisition through one single, innovative company with six distinct business units. OBJECTIVE 0 Lv4fivv,--t! EMPOWER LOCAL RESIDENTS AND BUSINESS LEADERS TO INCREASE INCREMENTAL ECONOMIC IMPACT. Add $600,000 in incremental economic impact to Newport Beach through increased meetings in the destination from local marketing, sales, services and customer outreach. OBJECTIVE O4 SERVICE MATTERS. Increase customer service quality, service standards and destination product knowledge for Newport Beach frontline tourism employees and for preferred partners. MICRO -AUDIENCES • NEWPORT BEACH CITY COUNCIL • ORANGE COUNTY VISITORS ASSOCIATION • CITY STAFF/DEPARTMENTS • REGIONAL DESTINATION -MARKETING ORGANIZATIONS • ORANGE COUNTY BOARD OF SUPERVISORS • REGIONAL ATTRACTIONS • ORANGE COUNTY STAFF/DEPARTMENTS • ORANGE COUNTY BUSINESS COUNCIL • LOCAL RESIDENTS • JOHN WAYNEAIRPORT • LOCAL BUSINESSES/PARTNERS • LOS ANGELES INTERNATIONAL AIRPORT • TOURISM -BUSINESS -IMPROVEMENT -DISTRICT HOTELS • THE TOLL ROADS • CIVIC ORGANIZATIONS • LOCAL/REGIONAL MEDIA • NEWPORT BEACH RESTAURANT ASSOCIATION • MERCHANT ASSOCIATIONS • ORANGE COUNTY TRANSPORTATION AUTHORITY • DESTINATION MANAGEMENT COMPANIES • CALIFORNIA TRAVEL ASSOCIATION NEWPORT BEACHANDCO.COM 99 LOCA L COMMUNITY future map QEXPLOIT STRENGTHS l .................................................. STRONG, CREDIBLE CITY AND DMO REPUTATION • City staff, civic leaders, civic organizations • Visit Newport Beach, Inc., Newport Seach & Company POSITIVE FINANCIAL IMPACT STRONG TOURISM PRODUCT: AIRPORTS, TRAIN, RESTAURANTS, RETAIL, HOTELS, HARBOR, BEACHES, WEATHER, NEARBY ATTRACTIONS DIVERSE NEIGHBORHOODS DIVERSE HOTEL/ACCOMMODATIONS PRODUCT (FIVE-STAR RESORT TO SMALL INNS/VACATION RENTALS) REFRESHEDINEW HOTEL PRODUCT DESTINATION APPEAL (WELL-MAINTAINED, WELL -MANICURED DESTINATION) VISITOR -FRIENDLY POLICE, FIRE AND LIFEGUARD DEPARTMENTS UNITED BRAND/MESSAGING UNDER ONE COMMUNITY -MARKETING ORGANIZATION (NEWPORT BEACH &COMPANY, WHICH SERVICES: VISIT NEWPORT BEACH, NEWPORT BEACH TV, DINE NEWPORT BEACH, ENTERPRISE NEWPORT BEACH AND CELEBRATE NEWPORT BEACH) STRENGTH TO REACH LOCAL RESIDENTS VIA NEWPORT BEACH TV (GOVERNMENT -ACCESS TV CHANNEL) STRONG R ESTAU RAN T COMM U N ITY, STAB LE BID FUNDING, NEWPORT BEACH RESTAURANT ASSOCIATION AND DINE NEWPORT REACH HEALTHY ECONOMIC DEVELOPMENT ARM (ENTERPRISE NEWPORT BEACH) BRAND -DEFINING EVENTS UNITED UNDER COMMON MARKETING, MESSAGING, SPONSORSHIP, PR AND MEDIA BUYING VIA CELEBRATE NEWPORT BEACH MITIGATE WEAKNESSES COMMUNITY ACTIVISTS (ANTI -DEVELOPMENT/ AN Tl -TOUR I SM/ANTI-AI RPORT SENTIMENT) LACK OF SPORTS AND RECREATION FACILITIES LIMITED CONVENTION, MEETING, EXHIBIT AND EVENT FACILITIESIVENUES BENEFITS THE CITY AIR ACCESS TO SOME MAJOR MARKETS LIMITED MOBILITY AND ACCESS (LOCAL TRANSPORTATION WITHIN DESTINATION) LIMITED CITY-WIDE COMMUNICATIONS AND INTERNET INFRASTRUCTURE STANDARD -DEFINITION VS. HIGH-DEFINITION GOVERNMENT -ACCESS TVCHANNEL WORKFORCE (COMPETITIVE SALARIES) NO CENTRAL, WALKABLE NIGHTLIFE OCEAN FRONT/BEACH FRONT LIMITED HOTEL PRODUCT LIMITED NUMBER OF UNIQUE, OFFSITE VENUES FOR LARGE GROUPS PERCEPTION OF BEING TOO EXPENSIVE LACK OF NATIO NAL/I NTE R NATIONAL AWARENESS (TI FPAN YJEWEL BOX SYNDROME) OMONITOR OPPORTUNITIES EMERGING NEWT BID PARTNERS NEW BALBOA PENINSULA TROLLEY EXPANDED AIR LIFTIJOHN WAYNE AIRPORT CAPACITY CAP INCREASE GROWING PROMINENCE OF NEWPORT BEACH FILM FESTIVAL NEW NEWPORT BEACH HOS PITALITYTRAINING PROGRAM NEWPORT BEACH POLICE DEPARTMENT BRAND INITIATIVE ORANGE COUNTY VISITORS ASSOCIATION FUNDING MAJOR, LOCAL INTERNATIONAL CONVENTIONS (DESTINATIONS INTERNATIONAL, US TRAVEL'S IPW) PREPARE FOR CONTINGENCIES OR THREATS ........................................... SHARING ECONOMY (VACATION RENTAL, RIDESHARE) ECONOMIC AND POLITICAL UNCERTAINTY/INSTABILITY HURDLES TO INTERNATIONAL ACCESS INTO THE UNITED STATES (LAPTOP/TRAVEL BANS, VISA ACCESS, IMMIGRATION ISSUES) US INTERNATIONAL PERCEPTION/IMAGE 3:7!►•.103 91 Fi►►112I W: I r. [ ONLINE SOURCING PLATFORMS MAKE IT EASY TO CIRCUMVENT DMO LOCAL COMPETITION HOTEL UPGRADES, NEW HOTELS AND MEETING VENUES THIRD -PARTY COMMISSION STRUCTURES NATU RALIW EATH ER -RELATE D DISASTERS 0 B J E C T I V E local community STRATEGY: Tourism, Meetings and Partners First! ELEVATE THE VALUE OF NEWPORT BEACH & COMPANY, ITS PARTNERS AND TOURISM! TO THE LOCAL COMMUNITY. ENGAGE WITH INFLUENTIAL COMMUNITY PARTNERS, ELECTED OFFICIALS AND LOCAL/REGIONAL MEDIA TO ENSURE AN UNDERSTANDING OF THE BENEFITS OF TOURISM IN NEWPORT BEACH AND THE IMPORTANCE OF NEWPORT BEACH & COMPANY AS AN ECONOMIC DRIVER TO LOCAL RESIDENTS, BUSINESSES AND STAKEHOLDERS. TACTICS: • Convey the message that the City of Newport Beach must continue to invest in infrastructure and Product development to ensure our destination is an aspirational destination. • Provide tourism update on Newport Beach & Company accomplishments. • Communicate the message to all local audiences that "tourism keeps their taxes low and quality of life high." STRATEGY: DEVELOP ACOMMUNITY PARTNERSHIP STRATEGY WITH INFLUENTIAL COMMUNITY MEMEBERS, LEADERS AND MEDIA TO DRIVE AWARENESS FOR THE IMPORTANCE OF TOURISM, MEETINGS AND NEWPORT BEACH & COM PANY. TACTICS: • Update a Newport Beach & Company communications strategy to share information, news and metrics with partners and local community leaders about the destination and company. • Update the "Tourism Matters" e -Newsletter with refreshed graphics, new research metrics and relevant Partner information. • Provide tourism updates at open forums and civic organizations and deliver value of tourism message to elected officials and local media. • Utilize Newport Beach TV as a platform to deliver positive tourism message to local residents. • Submit news articles, social media posts and blog content to these groups, media and local influencers for distribution to the community through their channels. • Forge stronger relationships with business/civic reporters for local business publications, websites and e-mails. • Ensure Newport Beach & Company is seen as the local industry expert to local news media in the community -marketing, tourism and meetings industries. • Encourage partners outside of the City of Newport Beach to renew their partnership with Newport Beach & Company to engage regional businesses and drive incremental revenue to the organization. • Support civic events with marketing and sponsorship support such as the Annual Fire & Lifeguard Dinner, Police Appreciation Breakfast, Citizen of the Year Dinner, Mayor's Dinner and Christmas Boat Parade Auction & Dinner. • Create new partner -engagement events and content such as Lunch & Learns, website videos, etc. 12-107 STRATEGY: CREATE, PLAN AND CONDUCT HIGH-fMPACT ANNUAL MARKETING OUTLOOK DINNER EACH YEAR TO: • Promote the accomplishments of Newport Beach & Company. • Celebrate the impact of tourism and meetings to Newport Beach. • Recognize the impact of tourism ambassadors and frontline employees. TACTICS: • Create an annual company theme and messaging that conveys the impact, accomplishments and future plans of the organization via a formal, sit-down Annual Marketing Outlook Dinner. ■ Recognize tourism ambassadors and Frontline employees through the Dennis O'Neil Partner in Progress Award and Rosalind Williams Service Excellence Award. • Create a new Local Meetings Hero Award for a local resident or business leader who brought or kept a meeting here in Newport Beach. • Create an Annual Report showcasing the accomplishments of Newport Beach & Company and all of its business units. • Garner local media coverage from Annual Marketing Outlook Dinner, Annual Report, Economic Impact Study & Visitor Profile and all year-end company metrics and accomplishments. STRATEGY: CREATE PLAN AND CONDUCT MULTIPLE INITIATIVES DURING NATIONAL TOURISM WEEK TO PROMOTE NEWPORT BEACH & COMPANY'S FUTURE PLANS, TOURISM AWARDS NEW COLLATERAL, VALUE OF TOURISM AND NEWPORT BEACH � COMPANY. TACTICS: • Produce a two-year Destination Business Plan and an ofF-year Supplement to the two-year Destination Business Plan. • Debut new Destination Business Plan, Annual Inspiration Guide and Official Visitor Map at National Tourism Week/Official Summer Season Kick-off Breakfast Event. • Explore adding a charity component/event to National Tourism Week festivities such as a tourism gives back initiative, e.g. beach, Back Bay or Crystal Cove clean-up events. • Explore creating a Visitor Choice Awards Program, which recognizes our top visitor- fr1endty partners in various categories. • Announce winners of Visitor Choice Awards at National Tourism Week breakfast event. • Garner total media coverage from National Tourism Week initiatives, Visitor Choice Awards and hotel forecasts in the Destination Marketing Plan. STRATEGY: IDENTIFY COMMUNITY ISSUES THAT MAY IMPACT TOURISM. TACTICS: • Evaluate community issues and activist group happenings involving tourism and Newport Beach & Company. • Monitor Newport Beach City Council agendas. • Attend Newport Beach City Council meetings and other civic gatherings. • Review news clippings about Newport Beach tourism, Newport Beach & Company and its business units. • Check activist blogs regularly. OBJECTIVE 2 local community STRATEGY: NEWPORT BEACH TV Community -marketing organization of the future. Community First! NOW IN ITS FIFTH YEAR, CONTINUE TO GROW, EVOLVE AND EXPAND THE ENTREPRENEURIAL, COMMUNITY - MARKETING ORGANIZATION MODEL AT NEWPORT BEACH & COMPANY THROUGH ITS UNIQUE BUSINESS - UN ITSTRUCTURE ENCOMPASSING COMMUNITY -WIDE MARKETING, BRANDING, PUBLIC RELATIONS, DIGITAL MARKETING, SOCIAL MEDIA AND SPONSORSHIP ACQUISITION THROUGH ONE SINGLE, INNOVATIVE COMPANY WITH SIX DISTINCT BUSINESS UNITS. Tell the City of Newport Beach and destination's brand story through the government -access cable television c onnel and other television -and -digital video channels. TACTICS: • Renew five-year contract with the City of Newport Beach to continue successful government -access television channel video -Production services on Newport Beach TV. • Create and launch new television -channel graphics package with updated show logos, graphics, schedules and chyrons. • Continue to shoot, edit and air all city -programming including city council meetings, planning -commission meetings, major events and other City of Newport Beach programming. • Significantly increase video production and airing of new destination -storytelling video content including additional episodes of the following television series: o Culinary Journeys (dining television series) ❑ Newport Journeys (neighborhood television series) o Newport Talk (public -affairs television talk show) • Develop new high-quality, long -format destination film/movie that showcases the Newport Beach lifestyle and tells the destination's brand story through a scripted, television movie series. • Showcase rights -free, third -party video content such as John Wayne movies. • Expand video content on the new NB-TV.com online lifestyle video channel. • Increase video distribution channels to increase viewing audiences via in -room guest television channels, partners websites, etc. • Continue to provide full-service video -production facilities and professionals for the City of Newport Beach, Iocal businesses and partners through a high-quality television studio, state-of-the-art video equipment [drones, virtual - reality and high-definition, 4K video cameras) and amazing video -editing and videographer professionals. 12-109 STRATEGY: ENTERPRISE NEWPORT BEACH Drive economic development and business prosperity for Newport Beach neighborhood businesses and merchants. TACTICS: • Renew agreements with two neighborhood merchant associations (Batboa Island Marketing, Inc. and Balboa Village Merchants Association) to continue full - service marketing, public relations and digital marketing support to drive economic impact for businesses and merchants in each neighborhood. • Develop long-term funding strategy with each association to long-term viability of each association. • Transition both independent, standalone neighborhood websites under the main VisitNewportBeach.com domain to increase web traffic for all parties. • Lead all event, neighborhood and merchant marketing, public relations, email marketing, social media and digital marketing for both merchant associations. • Drive brand awareness and economic impact for each neighborhood, neighborhood events and merchants/businesses. STRATEGY: CELEBRATE NEWPORT BEACH Elevate the pro f le, awareness and duality as well as market and promote all brand -defining events in Newport Beach. TACTICS: • Brand -defining events include but are not limited to: Newport Beach Christmas Boat Parade, Newport Beach Film Festival, Newport Beach Restaurant Week, Newport Beach Wellness Week, Hyatt Regency Newport Beach Jazz Festival, Hyatt Regency Newport Beach Summer Concert Series, Hoag Classic, Newport to Ensenada Yacht Race, and Newport Beach Wine & Food Festival. • Market and promote all brand -defining events in Newport Beach. • Newport Beach Christmas Boat Parade is the destination's largest, most brand -defining event with a separate marketing contract and program of work. o Renew five-year contract with the Newport Beach Chamber of Commerce for marketing, public relations, graphics, logos and sponsorship services for the Newport Beach Christmas Boat Parade. o Develop annual Christmas Boat Parade advertising, social -media messaging, official event program, signage, collateral, boater- registration marketing, Marina Park activations, sponsorship sales and services, and public relations. o Secure celebrity grand marshal and other grand marshals for all five nights of the parade. o Continue to provide input and advice on ways to enhance the visitor experience. o Create compelling programming and other additional high - profile elements to make the parade bigger, more successful and larger in scope and reach. o Showcase Media Kick-off Event at Marina Park featuring celebrity grand marshal, mayor, invited media and dignitaries. o Secure national and regional media relations coverage through targeted consumer media outtets, influencers and bloggers. o Conduct a bi-annual economic impact study to measure the economic benefits of the parade on the local economy. STRATEGY: DINE NEWPORT BEACH Lead all marketing, public relations, communications, finance and BID administration for the Newport Beach Restaurant Association. Drive brand awareness and economic prosperity and business for Newport Beach's collective restaurant community and culinary scene. r1is toy d RE57{WM'tsY WOK sTA�a TACTICS: s ` o 6i;�z.. • Renew five-year contract with the City of Newport Beach to continue successful government -access television • Develop integrated -marketing campaigns, events and programming to drive incremental spending to Newport Beach restaurants. • Renew agreement with the City of Newport Beach and Newport Beach Restaurant Association (N BRA) to lead all marketing, public relations, digital marketing, social media, event production, restaurant communications, branding, graphics, advertising, B I D administration, finance and accounting services for the Newport Beach Restaurant Association Business Improvement District (BID). • Create and launch fully integrated, seasonal marketing campaigns to drive year-round traffic into Newport Beach restaurants. • Continue successful new video series, Culinary Journeys and Weekly Bites, which showcase the hot, hip culinary scene in Newport Beach. • Create and execute all Dine Newport Beach and NB RA website content, social media, blogs, email marketing, public relations and advertising. • Transition both DineNB.com website from an independent, standalone website to one under the VisitNewportBeach.com site structure to increase web traffic from the main destination website to the Dine Newport Beach and - N BRA website content. • Build on partnership opportunities to generate additional NBRA revenue. • Develop hospitality -training videos for frontline service staff to improve and excel at customerldest1nation service. * • Expand on signature events such as N BRA Annual Meeting and Newport Beach Restaurant Week to increase revenue to restaurants and economic impact to the destination. • Continue to grow annual Newport Beach Restaurant Week with new media event, consumer event, additional restaurants, new ad campaigns, social -media and added features, benefits and marketing to drive economic impact for restaurants during need -period. ,T V � h ��+ f MUSr�Ry SAN . . w STRATEGY: VISIT NEWPORT BEACH, INC. (LEISURE MARKETING) Build international brand awareness and drive incremental visitation, trips and visitor spending in Newport Beach. TACTICS: • Continue to drive incremental visitation, trips and visitor spending in Newport Beach to drive tourism -occupancy tax (TOT) revenue for the destination and generate more than $1.2 million in annual economic impact for all Newport Beach businesses, retail, restaurants, attractions, vacation rentals and hotels. • Tell the tourism value proposition in ways that resonate to local audiences (civic leaders, city staff, peer civic organizations, commissions, businesses, partners, media, local residents, etc.). • Develop a local advocacy plan to tell the tourism value story and value of Newport Beach & Company and its business units to all local audiences. STRATEGY: VISIT NEWPORT BEACH, INC. (MEETINGS SALES, SERVICES AND MARKETING) Drive incremental meetings, conferences and group spending in Newport Beach to increase tourism business improvement district (TB ID) h otel pa rtn ers' reven ue. TACTICS: • Continue to drive incremental meetings, conferences and group spending in Newport Beach to increase tourism -business - improvement -district (TBID) revenue for the nine TBI D hotel partners, which in turn generates more than $60 million in annual economic impact for Newport Beach businesses, retail, restaurants and hotels. • Tell the meetingslconfere nces value proposition in ways that resonate to focal audiences (civic leaders, city staff, peer civic organizations, commissions, businesses, partners, media, local residents, etc.). • Develop a local advocacy plan to tell the meetingslconfere nces. value story and value of Newport Beach & Company and its business units to all local audiences. OBJECTIVE 3 IncaI community STRATEGY: Empower local residents and business leaders to increase incremental economic impact. Locals First! ADD $600,000 IN INCREMENTAL ECONOMIC IMPACT TO NEWPORT BEACH THROUGH INCREASED MEETINGS IN THE DESTINATION FROM LOCAL MARKETING, SALES, SERVICES AND CUSTOMER OUTREACH. KEEP YOUR MEETING LOCAL/LOCAL HERO CAMPAIGN TACTICS: • Create a fully integrated, grassroots Iocai-marketing campaign targeting local residents and business leaders encouraging them to become a "Hometown Hero" and either keep or bring a meeting to Newport Beach. Tout the economic impact of meetings and the value of meetings to the residents, businesses and City of Newport Beach. Use economic impact figures,jobs and tax savings as proof points showing how one local citizen became a hero to the city by bringing so much economic impact to the destination. • Create a microsite, email campaign, social media messaging, advertising and collateral promoting how every local resident or business leader can have an impact on where their organizations meetings are held from local hobby enthusiast events all the way up to a corporate meeting. • Create a new Local Meetings Hero Award for a local resident or business leader who brought or kept a meeting here in Newport Beach, and present the award at the Annual Marketing Outlook Dinner. 12-113 OBJECTIVE 4 l o c a I c o m m U n I t y STRATEGY: Service matters. Hospitality First! INCREASE CUSTOMER -SERVICE QUALITY, SERVICE STAN DAR DS AND DESTINATION PRODUCT KNOWLEDGE FOR NEWPORT BEACH FRONTLINE TOURISM EMPLOYEES AND FOR PREFERRED PARTNERS. CONTINUE TO ROLL-OUT AND EXPAND A ROBUST HOSPITALITY -TRAINING PROGRAM FOR FRONTLINE EMPLOYEES RESULTING IN COMMUNITY AMBASSADORS FOR NEWPORT BEACH. TACTICS: • Schedule and promote quarterly hospitality -training group classes at offsite venues for large groups of frontline employees. • Develop refresher course or online tools to keep frontline employees who have been through the program up-to-date with destination- and customer -service knowledge. • Offer customized, individual classes for individual Newport Beach businesses, civic organizations or City of New Port Beach public -safety departments. • Develop marketing program to Promote new hospitality -training program. • Develop updated, new hospitality -training videos for Newport Beach Police Department, Newport Beach Fire Department and Newport Beach lifeguards. STRATEGY: CREATE A PREFERRED -PARTNER PROGRAM WITH LOCAL BUSINESSES ATTRACTIONS, RETAIL, RESTAURANTS AND HOTELS TO CREATE A BETTER EXPERIENCE AND HIGHER LEVEL OF SERVICE AND ATTENTION TO DETAIL FOR ALL SITE VISITS, FAMILIARIZATION TOURS AND CLIENT EVENTS FOR MEDIA, TRAVEL TRADE, MEETING PLANNERS AND ALL CLIENTS. TACTICS: • Create a robust Preferred -Partner Program with key local partners who truly understand the value of tourism/ meetings to their business' bottom #ine and profits as well as the destination's overall economic impact. • The Preferred - Partner Program will include an orientation with each new business to brief them on the value of partnering with Newport Beach & Company and all of its business units and ensure they truly value the economic impact tourism/meetings can provide to their business. • Establish a set of standard "must -have," added -value service standards they can provide to Newport Beach & Company's clients and media. • Whenever possible, negotiate preferred rates or at a minimum added -value items to add to the client/media experience at no additional cost. • Publish and promote the preferred partners through all digital: channels. • Send services leads to preferred partners for additional client businesses. CUSTOMER -BASED DESTINATION BUSINESS PLAN ORGANIZATION & BOARD OF DIRECTORS Newport Beach & Company and Visit Newport Beach, Inc.jointly present this integrated administration, information - technology, finance, marketing, and group sales and services plan to engage the staff and boards of directors of both companies and the TBID board of directors to increase productivity; generate efficiencies; reduce costs; and attract, satisfy and retain quality employees and board members for the two organizations. With the internal mantra, "Beyond 2020," Newport Beach & Company plans to engage its employees and boards of directors in new, innovative ways to ensure the long-term viability, success and results of Newport Beach & Company and its six subsidiary business units: • Visit Newport Beach, Inc. (tourism -occupancy tax drives incremental tourism) • Visit Newport Beach (tourism business improvement district generates incremental meetings business) • Newport Beach TV (government -access television channel/television studio) • Enterprise Newport Beach (merchant associations/economic development) • Dine Newport Beach (Newport Beach Restaurant Association) • Celebrate Newport Beach (brand -defining events) The cross -functional planning team developed this integrated business plan for the organization and board -of -directors customer segment with a management -by -objectives approach where objectives are quantifiable goals, strategies form the strategic approaches to reaching the benchmark objectives, and tactics are projects that support overarching strategies. 110 FISCAL YEARS 2019-2020 DESTINATION BUSINESS PLAN 12-115 BEYOND 2020 INITIATIVES OBJECTIVE1O F mtl. INCREASE BOARD ENGAGEMENT. Increase engagement with the boards of directors of Newport Beach & Company, Visit Newport Beach, Inc., and the Tourism Business Improvement District to aim for 100 -percent participation at board meetings, Annual Marketing Outlook Dinner and other company functions. OBJECTIVE0 Cvi*L rax fi Mt! PREPARE FOR THE WORST. PLAN FOR THE BEST. Ensure a positive reputation in the community and industry and the long-term viability and functionality of the companies, boards of directors, management team and employees in the event of a crisis or leadership change. OBJECTIVE 0 'P"mahcefirTt! IMPROVE COMPANY EFFICIENCYAND PERFORMANCE. Increase efficiency, functionality and performance of business -processes workflow to eliminate chance for errors, redundancies and inefficiencies. OBJECTIVE O4 1:IK oyear,,firciI BECOME THE PREFERRED REGIONAL DMO EMPLOYER. Increase employee performance, morale and retention and other measures of employee satisfaction. MICRO -AUDIENCES • NEWPORT BEACH & COMPANY EMPLOYEES/STAFF • VISIT NEWPORT BEACH, INC. EMPLOYEES/STAFF • NEWPORT BEACH &COMPANYIVISIT NEWPORT BEACH, INC. MANAGEMENT TEAM • NEWPORT BEACH & COMPANYIVISIT NEWPORT BEACH, INC. BOARDS OF DIRECTORS • TOURISM BUSINESS IMPROVEMENT DISTRICT(TBID) BOARD OF DIRECTORS • NEWPORT BEACH &COMPANYMARKETING COMMITTEE NEWPORT BEACHANDCO.COM 111 0RGANIIATI0N & BOARD OF DI RECTO RS MITIGATE f u t u re map .. .. WEAKNESSES ................. ....... ADJUST TO GROWING ORGANIZATION ENTREPRENEURIAL COMMUNITY -MARKETING BUSINESS MODEL COMPETITIVE JOB MARKET, SALARY EXPECTATIONS EXPLOIT NTRALIZED HUMAN STRENGTHS R"EESO RC SIIN ORMATION- ,.........................................................: TECHNOLOGY DEPARTMENTS COMMITTED STAFF, EXECUTIVE COMMITTEE OUTDATED AND BOARD OF DIRECTORS EMERGENCY/CRISIS PLANS STRONG CITY COUNCIL AND CITY STAFF ACCREDITED DESTINATION -MARKETING ORGANIZATION: CERTIFIED {J ESTI NATION MANAGEMENT EXECUTIVE (CID ME) TEAM INDUSTRY LEADERS STRONG,TALENTED STAFF, BIG BENCH OFTALENT INNOVATIVE COMMUNITY -MARKETING ORGANIZATION MODEL STRONG COM PANYCOR E VALUES, BENEFITS, EDUCATIONAL OPPORTUNITIES, TEAM SPIRIT. OFFICE SPACE, COMPANY EVENTS AND C COLLABORATION RESULTING IN AMAZING WORK PRODUCTIVITY. RESULTS AND ACHIEVEMENTS PREMIER DESTINATION PRODUCT 10 -YEAR TBID AND TOT CONTRACTS WITH THE CITY OF NEWPORT BEACH APPEALING OFFICE INFRASTRUCTURE. ENVI RONMENT AND SCENIC LOCATION NEW VIDEOITELEVISION STUDIO HIGH-TECH. DIG ITALVIDEO EQUIPMENT (D RO N E. V I RT UAL -R EALITY AN D HIGH-DEFINITION 4K CAMERAS) COMPETITIVE TOT AND TBID BUDGETS VOCAL COMMU N ITY ACTIVISTS (ANTI-DEVELOPMENTIANTI- TOURISMIANTI-AI RPORT SENTIMENT) LIMITE DCON VENTI0N, MEETING AND EVENT FACILITIES/VENUES STRONG ECONOMY MAKES COST OF SERVICES MORE EXPENSIVE 12-117 OMONITOR OPPORTUNITIES CITY AND BOARD OF DIRECTORS ENGAGEMENT PART NERVENDOIRS AND PARTNERS TO NEGOTIATE BEST PRICE MAXIMIZE EFFICIENCIES LEADER IN THE DMO INDUSTRY STRONG INDUSTRY REPUTATION, STAFF EXPERTISE, TEAM AND ORGANIZATION, CREDENTIALED STAFF. ACCREDITED COMPANY EVOLVE TECHNOLOGY USED CONTINUE TO MAINTAIN POSITIVE CULTURE BOARD REPORTING: MAKING CONTENT ENGAGING AND RELEVANT TO BOARD MEMBERS ADVOCATE FOR NEW HOTEL, TRANSPORTATION AND EVENT VENUES PREPARE FOR CONTINGENCIES OR THREATS SHARING ECONOMY (VACATION RENTAL, RIDESHARE) ECONOMIC AND POLITICAL U N CE RTAI NTYII N STAB I LITY FLUCTUATING FOREIGN-EXCHANGE RATES AN D VALU E -ADDED TAXES ON SERVICES PURCHASED OVERSEAS LOCAL COMPETITION HOTEL UPGRADES, NEW HOTELSAND MEETINGVENUES THI RD -PARTY COMMISSION STRUCTURES N ATU RALIW EATH E R -R E LATE D DISASTERS HIGH COST OF EMPLOYEE BENEFITS (HEALTHCARE, DENTAL, VISION, LIFE AND DISABILITY INSURANCE; 401 K. ETC.) COMPETING DESTINATIONS WITH NEW HOTELS AND NEW MEETING SPACE SIGNIFICANT HOTEL LEADERSHIP CHANGES July August September October Novembe CHRISTMAS BOAT PARADE BOARD MEETINGS EXECUTIVE COMMITTEE MEETINGS NEWPORT BEACH RESTAURANT WEEK NEWPORT BEACH FILM FESTIVAL CITY COUNCIL PRESENTATION NATIONAL TOURISM WEEK WELLNESS WEEK 114 FISCAL YEARS 2019-2020 DESTINATION BUSINESS PLAN December January February March April May June NEWPORT BEACHANDCQ.CQM 115 OBJECTIVE 1 organization & board of di rectors STRATEGY: Increase board engagement. Board First! INCREASE ENGAGEMENT WITH THE BOARDS OF DIRECTORS OF NEWPORT BEACH & COMPANY, VISIT NEWPORT BEACH, INC., AND THE TOURISM BUSINESS IMPROVEMENT DISTRICT TO AIM FOR I00 -PERCENT PARTICIPATION AT BOARD MEETINGS, ANNUAL MARKETING OUTLOOK DINNER AND OTHER COMPANY FUNCTIONS. DEVELOP A COMMUNICATIONS -AND -OUTREACH STRATEGY TO BOARD MEMBERS OF ALL THREE OF OUR COM PAN IES/ORGAN IZATIONS IN AN EFFORT TO INCREASE BOARD ENGAGEMENT, ATTENDANCE AND COMMITMENT TO EACH ORGANIZATION. TACTICS: • Continue quarterly e -Newsletters with video content and messaging from the President and CEO to partners, board members and community leaders. • Create video messages from the president and CEO. • Include a short, board -member spotlight in the quarterly e -Newsletter or CEO video message. • Bring in board members for focus groups. • Review functionality of processes for board meetings. • Continue to create engaging board meetings with guest speakers. • Create a short, highlight video about the companies, business units, mission, vision and economic impact to the destination. 12-121 OBJECTIVE 2 organization & board of directors STRATEGY: Prepare for the worst. Plan for the best. Company First! ENSURE POSITIVE REPUTATION IN THE COMMUNITY AND INDUSTRY AND THE LONG- TERM VIABILITYAND FUNCTIONALITY OF THE COMPANIES, BOARDS OF DIRECTORS, MANAGEMENT TEAM AND EMPLOYEES IN THE EVENT OF A CRISIS OR LEADERSHIP CHANGE. CREATE A COMPREHENSIVE EMERGENCY PLAN WITH ADMINISTRATION, HUMAN RESOURCES, FINANCE, MEDIA RELATIONS AND TECHNOLOGY COMPONENTS IN THE EVENT OF INCLEMENT WEATHER, GROUND DISTURBANCES, TERRORISM, CYBER -TERRORISM, INFRASTRUCTURE COLLAPSE INCLUDING SUCCESSION PLANS FOR DEPARTMENT HEADS DUE TO LEADERSHIP CHANGES. TACTICS: • Establish an emergency -planning committee with involvement from the management team, administration, finance, media relations and information technology functional areas of the company. • Create hard copy and digital versions of the comprehensive emergency plan. • Reapply for Destinations International accreditation including the creation of all required contingency plans and crisis communications plans. • Partner with a third -party company to provide a technology-based, instant communications channel to reach top tourism, hospitality and city officials in the event of an emergency. • Include succession plans for critical functional positions within the company. • Choose designated media spokespeople for the company including back-up spokespeople. • Develop a phone tree or some other communications plan to reach the boards of directors, executive committee, employees City of Newport Beach staff, Newport Beach Emergency Command Center, Change County government, State of California, Visit California and neighboring destination -marketing organizations. • Implement a rehearsal procedure via an annual drill. 0BJECTIVE 3 organization & board of di rectors STRATEGY: Improve company efficiency and performance. Performance First! INCREASE EFFICIENCY, FUNCTIONALITYAND PERFORMANCE OF BUSINESS -PROCESSES WORKFLOW TO ELIMINATE CHANCE FOR ERRORS, REDUNDANCIES AND INEFFICIENCIES. EXAMINE AND POSSIBLY REINVENT ALL BUSINESS PROCESSES, WORKFLOW AND PROJECT MANAGEMENT THROUGHOUT THE COMPANY. TACTICS: • Monitor alt Processes for Project- and -time -management critical Paths throughout the company to find gaps, bottlenecks or issues that impede successful outcomes, positive results, exceeded goals or met deadlines. • Research software or process -oriented solutions to better manage projects, resources and time. • Explore new time -management software solution to manage and approve paid -time -off requests and hourly employee timecards. • Implement and train staff on new software solutions. • Continue to took for enhancements, features and new tools to maximize return on investment. 12-123 OBJECTIVE 4 organization & board of directors STRATEGY: Become the preferred regional DMO employer. Employees First! INCREASE EMPLOYEE PERFORMANCE, MORALE AND RETENTION AND OTHER MEASURES OF EMPLOYEE SATISFACTION. CENTRALIZE SEVERAL EMPLOYEE BENEFITS, OFFER LETTERS AND E EMPLOYEE -FACING INFORMATION INTOA FORMALIZED PROCESS WITH CLEAR ACCOUNTABILITY. TACT1 CS: • Move all benefits, new -employee ofFer letters and other employee -facing information under the D1recto r of Administrationjob description. • Utilize an intranet or new workforce -management software solution to centralize all employee -facing documentation, benefits information and other company information. • Continue the employee value -proposition report showing each employee's total compensation (including base salary, benefits, payroll taxes and other hidden compensation], so employees know their total monetary value to the company. STRATEGY: CONTINUE EMPLOYEE -ENGAGEMENT BENEFITS, EDUCATIONAL OPPORTUNITIES AND EMPLOYEE EVENTS AND RETREATS TO INCREASE EMPLOYEE MORALE, PRODUCTIVITY AND RETENTION. TACTICS: • Continue popular fitness -center reimbursement, fitness -equipment reimbursement, educational opportunities and companylstaff retreats, meetings and team outings. • Continue the stay -and -play benefit where employees are encouraged to experience the destination's hospitality features first-hand as a guest. • Continue successful holiday lunch. • Continue infusing the company's core values into everything we do. • Ensure summer staff outing is a fun, bonding experience for all employees. • Continue to refine and add worthy educational components and bonding activities at the annual staff retreat. • Continue to support external,Job- related educational opportunities for all employees. BUSINESS -UNIT DESTINATION BUSINESS PLANS Aullow - I - w �I V, 122 922 FfSCAL YEARS 2019-2020 DESTINATION BUSINESS PLAN 12-127 F47, �I V, 122 922 FfSCAL YEARS 2019-2020 DESTINATION BUSINESS PLAN 12-127 I VISIT NEWPORT BEACH, INC. 124 VISIT NEWPORT BEACH, INC. - LEISURE MARKETING 136 VISIT NEWPORT BEACH, INC. - GROUP SALES NEWPORT BEACH & COMPANY 144 DINE NEWPORT BEACH 148 ENTERPRISE NEWPORT BEACH 152 CELEBRATE NEWPORT BEACH 156 NEWPORT BEACH TV 123 12-128 BUSINESS UNIT D E S T I NATION BUSINESS PLANS VISIT NEWPORT BEACH, INC. 124 VISIT NEWPORT BEACH, INC. - LEISURE MARKETING 136 VISIT NEWPORT BEACH, INC. - GROUP SALES NEWPORT BEACH & COMPANY 144 DINE NEWPORT BEACH 148 ENTERPRISE NEWPORT BEACH 152 CELEBRATE NEWPORT BEACH 156 NEWPORT BEACH TV 123 12-128 VISIT NEWPORT BEACH, INC. LEISURE MARKETING Visit Newport Beach, Inc. Leisure Marketing shares the Newport Beach brand story,,' tory, ` with traveling consumers throughout the visitors research, planning and purchase process. From inspiring visitors to take a trip to Newport Beach to creating a place s ti to share memories, Visit Newport Beach, Inc. engages with the visitor at all points in the journey. �r Leisure Marketing is funded 6y a portion of transient occupancy tax (TOT), the third- largest source of revenue for the city of Newport Beach, which is paid by visitors staying in hotels and vacation rentals. The Leisure Marketing team is divided into two functional departments: Marketing & Strategic Partnerships and Destination Storytelling. MARKETING & STRATEGIC PARTNERSHIPS DESTINATION STORYTELLING 'VISIT e7wort X4EACH CALIFORNIA 924 FISCAL YEARS 2019-2420 DESTINATION &USINESS PLAN 12-129 .1 I I NEW PORTS EAC HAN DCO.COM 125 12-130 !!70 MARKETING &STRATEGIC PARTNERSHIPS Marketing & Strategic Partnerships represents the account and community membership element of Visit Newport Beach. The team deploys the message to potential consumers, manages visitor recourses, and tries to understand visitor patterns and behaviors. The primary areas of Marketing & Strategic Partnerships are advertising, research, international marketing, industry relations, strategic partnerships, community relations and visitor services and digital management. V ADVERTISING Visit Newport Beach, Inc.'s Marketing & Strategic Partnerships Team develops integrated advertising and promotional campaigns in key target markets that are on -brand and are integrated with the other marketing disciplines in order to: • Increase year-round leisure travel from day-trippers and first-time visitors • Extend visitors' length of stay • Encourage repeat visitation In Fiscal Years 2017 and 2018, Visit Newport Beach developed and launched a new brand campaign, "Journey Well Beyond." The message played at Newport Beach's duality; it is a destination where dress shoes and flip flops are equally appropriate. The creative was developed by an outside agency using prior research, and a new library of assets was deployed across advertising channels. Visit Newport Beach advertising runs during need periods for our tourism partners. With a traveler planning window of approximately 30 days, our campaigns run for the winter shoulder season (November- January) and spring shoulder season (March -May). By monitoring travel patterns, we can identify any other potential need periods and deploy resources accordingly. Our primary advertising markets are Los Angeles, San Diego, Phoenix and Las Vegas. These markets represent approximately half of all overnight visitors to Newport Beach. They are an ideal target for these seasons; all are within a short drive or flight, and the regions are already familiar with Newport Beach. There are also secondary and exploratory markets Visit Newport Beach will continue to monitor as potential media targets. They are San Francisco, Sacramento, Salt Lake City and Denver. Our marketing mix is heavily digital, allowing messaging to reach the right audience at an efficient price. The campaigns are supported by print, radio and other tactics as they fit into the campaign. 126 FISCAL YEARS 2019 -2020 -DESTINATION BUSINESS PLAN 12-131 RESEARCH & PLANNING Visit Newport Beach, Inc., conducts tourism destination research to support brand and marketing initiatives. Research initiatives include ad effectiveness studies, visitor profile studies and economic impact reports. Investing in research helps define the Newport Beach traveler and allows the marketing team to best target the appropriate audiences who make the largest impact to tourism in Newport Beach. V INTERNATIONAL MARKETING International visitors continue to be vital to Newport Beach tourism. In close collaboration with our international public relations and travel trade agencies, the Marketing team educates and promotes Newport Beach to international travel -trade companies and travel media in order to generate visitation to Newport Beach. Key international markets include China, Middle East and United Kingdom, and Canada. Efforts include the following: TRA) Travel trade encompasses travel agents, tour operators, online travel agencies and airline suppliers who book individual or group tours for travelers. In the United States, most consumers book travel directlyvia an online booking source, while international travelers in many countries continue to rely on a third -party travel agency or tour operator to assist with travel planning and booking. Visit Newport Beach works with travel trade agencies that specialize in behaviors of travelers and travel trade representatives in those markets. UNITED KINGDOM TRAVEL TRADE & PUBLIC RELATIONS INITIATIVES Visit Newport Beach contracts directly in the United Kingdom with Black Diamond—a full-service public relations, travel trade and strategic partnership agency. Black Diamond represents Newport Beach as a tourism and vacation destination throughout the United Kingdom. Black Diamond represents Visit California, giving Visit Newport Beach advantages through this unique partnership with an agency that thoroughly understands both California and Newport Beach. NEWPORTBEACHANDCO.COM 127 12-132 Each February, Visit Newport Beach, Inc. conducts its largest international campaign — the Newport Beach UK Honours. The fully integrated marketing campaign includes consumer advertising, travel - trade education, media relations, radio interviews and TV appearances. The campaign concludes with a star-studded event to coincide with the British Academy of Film & Television Arts Awards ceremony in London. Visit Newport Beach, Inc.'s entire United Kingdom campaign is a unique collaboration with the Newport Beach Film Festival. Through the promotion of the Newport Beach Film Festival at the same time as the BAFTAs, Visit Newport Beach capitalize son celebrities and their star -power to promote the Newport Beach brand lifestyle to a high-income United Kingdom traveler looking for warm -weather, luxurious beach destinations. ORANGE COUNTY VISITORS ASSOCIATION PARTNERSHIPS- CHINA AND MIDDLE EAST Visit Newport Beach partners with the Orange County Visitors Association (OCVA) and its external agencies to represent Newport Beach and participating Orange County destinations, hotels and attractions in China and in specific countries throughout the Middle East. These agencies educate travel agents about Newport Beach and Orange County as a vacation destination. As part of Orange County Visitors Association's effort to educate tour operators about Orange County, annual in-person meetings are held in key international markets. Visit Newport Beach participates in China and/or Middle East Sales Missions with specific sales presentations to Ctrip—the largest online travel agency in China, and the world—as well as major international travel providers. Visit Newport Beach will continue providing travel -agent and wholesaler training to agents across China who are booking travel for clients to destinations around the world. China has leaped to one of the top international, inbound markets to California with 150 weekly nonstop flights, with more planned, to major gateway cities including LAX. As with international marketing efforts in China, Visit Newport Beach partners with Orange County Visitors Association's Middle East office in Dubai for travel trade and public relations representation in targeted Middle East countries. Orange County Visitors Association was one of the first United States destinations to have representation in the Middle East, and Newport Beach has been at the forefront of this strategic partnership. The Orange County Visitors Association Middle East sales office provides travel - agent and wholesaler training to agents across the Middle East who are booking travel for their clients to destinations around the world. CANADA As a top visitor market with easy accessibility, Visit Newport Beach will elevate its presence in Canada through a strategic partner to help reach the media and travel trade audiences most effectively. IPW 2019 In June 2019, IPW, the world's biggest travel industry trade show, will be returning to Anaheim. Thousands of the top internationals travel agents and travel media will be in our backyard, providing invaluable exposure to a lucrative audience. Visit Newport Beach is planning a major presence at the event. To prepare for this milestone, the Visit Newport Beach team exhibited at IPW in 2018 for the first time in nearly a decade. For 2019, Visit Newport Beach will collaborate with Visit Anaheim and Visit Huntington Beach to create coastal experiences for the attendees. Additionally, we hope to bring key agents and media to Newport Beach before and after the trade show to have a richer experience in the destination. 128 FISCAL YEARS 2019 -2020 -DESTINATION B -USI NESS PLAN 12-133 V VISITOR SERVICES Visit Newport Beach, Inc. works with our community partners and visitor concierges to provide helpful information and enhance the visitors' experience. The concierge team operates the Fashion Island Visitor Center and provides the community with content -rich visitor information through destination maps and visitor guides. 'V STRATEGIC PARTNERSHIPS Marketing & Strategic Partnerships works to promote the destination with a collaborative efFort between leisure travel and local community. These partnerships will elevate our brand at Visit Newport Beach and our partners by promoting our destination through strategic integrated marketing campaigns that include paid, earned, owned and trade initiatives. T W E L One of Visit Newport Beach's most valuable resources is Visit Newport Beach.com. With over a million visitors annually, it provides the immediate visitor assistance on Newport Beach. The flexibility to edit content benefits both the visitor by providing up-to-date experiences and stakeholders to update their information as they improve their products. Visit Newport Beach. com provides hotel, dining and activity information from stakeholders, neighborhood guides, and partner ofFers and events. They website is key in the dreaming, planning and booking phases of the traveler cycle. The website will be further leveraged with the introduction of micro -sites for major initiatives. For major events and initiatives, we will create customize pages with engaging content and educational resources designed to complement the initiative. Visit Newport Beach.com will contain guides for the information visitors are seeking. Interactive guides include weddings, pet travel and more. V MOBILE MARKETING Creating and in -destination mobile experience is a key way to tap into customers. Over 70% of travelers always use their smartphone when they travel(https://www.thinkwithgoogle.com/ consumer- insights/consumer-travel-smart phone -usage/) To capitalize on these travelers, Visit Newport Beach will develop, a mobile concierge platform built into the existing, mobile responsive website. The platform will pull from our existing partner database, directing visitors to Newport Beach businesses that meet their preferences and geographic location. By curating an experience for visitors based on their preferences, Visit Newport Beach can more create a better experience for our guests, and hopefully encourage repeat visitation. NEWPORTBEACHAND CO. COM 129 12-134 DESTINATION STORYTELLING Visit Newport Beach, Inc: s media -relations efforts hinge on strong, ongoing relationships with target media, bloggers and social influencers. Nurturing current relationships, growing our media ULJWJ database and increasing media visits to the area are top priorities. Sharing the Newport Beach brand story through respected media outlets not only gives the destination credibility, but also exposes these audiences to the destination. V MEDIA RELATIONS SAr BUSINESS -TO -CONSUMER (B2Q: CONSUMER & TRAVEL TRADE MEDIA TIER 1 MARKETS (DRIVE -MARKETS) Angeles TIER 2 MARKETS (FLY -MARKETS) Las Vegas OPPORTUNITY (FLY -MARKETS) Chicago Greater Orange County San Francisco Bay Area New York Inland Empire Dallas Seattle Palm Springs Houston Portland San Diego Austin Canada Phoenix Denver United Kingdom China Middle East 130 FISCAL YEARS 2019-2020 DESTINATION BUSINESS PLAN 12-135 TARGET MEDIA CHANNELS PRINT Is DOMESTIC CONSUMER & TRAVEL TRADE MEDIA RELATIONS: o Develop compelling story angles centered around the Newport Beach lifestyle and its brand -defining events o Proactive pitching to local, regional, and national media to secure stories o Facilitate incoming media requests o Create custom itineraries for visiting media o Plan familiarization (FAM) tours around aficionado angles o Develop new, leading-edge online news room on company -managed website to promote all business units I I 11111 :1 NIV'%IIL•1.1_1 S4•1►W1VA1:11 *W TRAVEL TRADE MEDIA RELATIONS: o Work with Black Diamond (United Kingdom) and Orange County Visitors Association (China, Middle East) to develop stories that resonate with these international markets o Develop custom itineraries for international visiting media and plan familiarization (FAM) trips for larger groups of media ONLINE 0 BROADCAST NATIONAL, LOCAL & REGIONAL BUSINESS -TO -BUSINESS MEDIA RELATIONS: o Push Newport Beach & Company, Visit Newport Beach, Inc., and the Newport Beach/Orange County tourism/meetings industry news to local and regional media o Devise communications plan to promote Newport Beach & Company President & CEO, Gary Sherwin o Develop a crisis communications plan for the company and destination NEWPORTBEACHAND CO. COM 131 12-136 CONTENT DEVELOPMENT V BRAND IDENTITY AND MANAGEMENT Serving as an in-house creative services agency, Visit Newport Beach, Inc.'s brand management team brings tremendous graphic design, art direction, photography, videography and creative direction to Visit Newport Beach, Inc. and all of its business units. This team helps drive the new brand advertising campaign creative and serves as the central source for brand voice, brand look and brand identity for Visit Newport Beach, Inc. and all of its business units. V COLLATERAL Visit Newport Beach produces annual collateral and sales promotion materials to assist the visitor while they are planning their trip and to guide them when they are in the destination. Visit Newport Beach's collateral collection includes the Newport Beach Inspiration Guide and Newport Beach Neighborhood Guide and Visitor Map. These guides replaced the traditional Visitor Guide and Map with all new, native -content marketing collateral. Produced annually, the Newport Beach Inspiration Guide is an engaging print publication that is intended to inspire travelers to visit and keep Newport Beach top of mind during the inspiration phase of the travel journey. The magazine -format, Inspiration Guide has an annual distribution of 100,000 through direct mail, trade shows, in -market newsstands, in hotel rooms, select West Coast Barnes & Noble retail stores and digitally. All advertising placed in the Inspiration Guide is native integration, seamlessly blending the advertiser's message with the Newport Beach brand story. This format provides cover -to -cover magazine stories without the intrusion of typical display advertising providing a seamless brand experience for the consumer. The Newport Beach Neighborhood Guide and Visitor Map is an in -market guide to exploring the city's unique neighborhoods with detailed maps showcasing dining, shopping and places to explore in Newport Beach. More than 100,000 copies are printed annually and distributed throughout hotels, resorts, Fashion Island and the Visit Newport Beach, Inc. concierge center as well as local hotel concierge desks throughout Newport Beach. `'! VIDEO Visit Newport Beach understands the importance of video in inspiring visitors. With in-house production capabilities, Visit Newport Beach shares the destination in ways as rich as possible across owned media platforms. Further immersive experiences will be deployed as Newport Beach builds a collection of 360 -degree videos to be experienced through virtual reality headsets. 132 FISCAL YEARS 2019 -2020 -DESTINATION BUSINESS PLAN 12-137 Visit Newport Beach has an active social media following. Social platforms allow Visit Newport Beach to share partner and visitor content. Additionally, it allows the team to interact with visitors planning their trip and in -market visitors who might have questions. Social media has been an active part of the overall marketing plan for Visit Newport Beach, and will continue an aggressive growth pattern into the new two-year cycle. The Marketing team will focus on monitoring up-and-coming social media channels, while maximizing the offerings of top social platforms to better coincide with all advertising and marketing efforts to reach the visitor audience. Video will be a major point of integration, generating more content that will be distributed on the social networks. New programming ideas with quick and compelling content will be generated out of larger pieces being produced for web and other marketing initiatives. As influencer marketing continues to gain traction, Visit Newport Beach actively seeks out the right influencers to share the Newport Beach story. Influencer relationships allow us to reach new audiences while highlighting the destination and our partners. 7 BLOC STRATEGY The Visit Newport Beach blog offers fresh content each week for locals and visitors alike. The original content shares what's new in Newport Beach, information on upcoming events, local profiles and more. All blogs are written by a dynamic group of guest bloggers and in-house Marketing team members who each bring a unique perspective to the destination. The Visit Newport Beach blog keeps the website fresh with new content based on travel trends or consumer insights. Visit Newport Beach keeps visitors, partners, meeting planners and local residents informed through a robust and comprehensive e -communications program. E -communications are used to keep consumers and partners informed on the latest destination and organization happenings while keeping Newport Beach top -of -mind. Visit Newport Beach, Inc. manages two regular e -Newsletters and targeted campaign emails as needed. CONSUMER E -NEWSLETTER Distributed to locals and visitors, the consumer e -newsletter provides information about the latest Newport Beach events and news. The e -newsletter, in collaboration with the Visit Newport Beach blog, distribution original consumer -focused content. INDUSTRY E -NEWSLETTER The Tourism Matters newsletter showcases trends in the destination, economy and local markets, while providing monthly updates about Newport Beach & Company to partners and stakeholders. NEWPORTBEACHAND CO. COM 133 12-138 VISIT NEWPORT BEACH, INC. LEISURE MARKETING BUDGET VISIT NEWPORT BELCH MARKETING BUDGET BUDGET ALLOCATION LEISURE MARKETING (TOT) REVENUE FY2019 $5,017,493 FY2020 $5,233,355 OPERATING EXPENSES $1841669 $188,448 ADVERTISING $810,000 $17085,000 COMMUNITY RELATIONS $2601991 $291,740 COLLATERAL $621000 $62,000 INTERNATIONAL MARKETING $7451000 $4651000 DIGITAL MARKETING $358,000 $433,000 PUBLIC RELATIONS $267,287 $325,735 FEES AND CONTRIBUTIONS TO NB&CO. $46,964 $45,000 134 FISCAL YEARS 2019-202.0 DESTINATION BUSINESS PLAN 12-139 VISIT NEWPORT BEACH % OF BUDGET ADVERTISING 0 COMMUNITY RELATIONS INTERNATIONAL MARKETING DIGITAL MARKETING COLLATERAL PUBLIC RELATIONS NEWPORTBEACHANDCO.COM 135 12-140 VISIT NEWPORT BEACH, INC. GROUP SALES &MARKETING Visit Newport Beach, Inc. Group Sales actively brings valuable group meetings and conference 6usiness to the Newport Beach Tourism Business Improvement District (TBID) hotel properties and local businesses. The Newport Beach TBID consists of nine hotel properties: . Balboa Bay Resort Fashion Island Hotel • Hyatt Regency John Wayne Airport Newport Beach • Hyatt Regency Newport Beach Lido House • Marriott Newport Beach Hotel & Spa • Newport Beach Marriott Bayview • Newport Dunes Waterfront Resort & Marina • Renaissance Hotel Newport Beach The purpose of the TBID agreement is to directly increase group business (meetings and conferences) for partner hotels. To deliver on the TBID promise, Visit Newport Beach Group Sales and Newport Beach & Company's marketing team must foster current client relationships and attract new meetings and conferences to Newport Beach. Through aggressive direct selling, innovative marketing initiatives and strong community partnerships, the efforts of the Group Sales & Marketing team result in increased group hotel room nights and additional revenue to TBID hotel partners. Each year, the TBID Board of Directors sets a rooms -night goal for the Visit Newport Beach Group Sales team just before the start of each new fiscal year. For FY 18, Group Sales is on -track to meet one of its strongest rooms -night goal. The Newport Beach & Company marketing team partners with Group Sales and provides thought leadership, strategic planning and integrated marketing campaigns that drive brand awareness for the meetings destination and ultimately increases overall ,group and meetings bookings. :VISIT G YY ort 0 EACHINC. 136 FISCAL YEARS 2019-202-0 DESTINATION BUSINESS PLAN 12-141 GROUP SALES The Group Sales national account directors are responsible for attracting group meetings business to TBID hotel properties. Through tradeshows, client meetings and in -destination familiarization {FAM} tours, these industry experts deliver impressive room -night goals and bring essential meetings business to partner hotels. Their challenge is to present their clients a dual message of promoting Newport Beach and the TBID hotel partners as a premier meetings destination as well as touting the superior customer service, sales experience and team talents of the Group Sales team. The national account directors are deployed geographically. Extra emphasis has been placed on Eastern US business as weli as exploring the Canadian market in the next fiscal year. Meetings and conferences traveling longer distances tend to stay longer in the destination and thereby spend more money locally and generate greater economic impact to Newport Beach. An important audience for the Group Sales team is third -party meeting planners. Companies and associations hire these third -party planners to plan their meetings. With numerous clients, each third -party planner brings potential for multiple end-user clients. Group Sales' key third -party partners are ConferenceDirect, HelmsBriscoe and Hospitality Performance Network (HPN) Global. In 2017, due to the hard work and strong partnerships, Visit Newport Beach successfully won the coveted Destination Partner Secondary Markets awards from both ConferenceD i rect and HelmsBriscoe. �[5 � HELMSBRISCOE r ConferenceDirect, The Group Sales team earns valuable contacts through tradeshow attendance, sales missions and other relationship -building activities. Through a rigorous tradeshow schedule, the team continues to elevate its tradeshow presence with a dynamic, industry-leading tradeshow booth experience. From brand -defining features such as raising the martini flag to a stunning, back -lit Crystal Cove meetings scene, the Visit Newport Beach tradeshow booth in its various formats and sizes continues to welcome and wow meeting planners and even the competition. 138 FISCAL YEARS 20114-2020 -DESTINATION B+JSINES5 PLAN 12-143 The Group Sales team continues to build on the success of the new foray into the meetings, incentives, conferencing and exhibitions (MICE) market in China. Through this partnership with Orange County Visitors Association's China MICE Initiative, Group Sales reaches planners in China who book MICE meetings overseas and group/meetings travel from China to Newport Beach and Orange County. Through numerous frosted China MICE familiarization trips in Newport Beach and sales missions to China, Visit Newport Beach continues to make great forays into the China MICE market. In the next two fiscal years, the Group Sales team will explore the Canadian market to target meeting planners in Canada who can book meetings into Newport Beach. The team will explore this new market through three Canadian tradeshows as well as a partnership with leisure marketing on a combined meetings/leisure event targeting Canadian clients and media. MA CA: E5 TEAM KIMBERLY DUNNEGAN Canada. Pacific Northwest Alaska• Hawaii. N orthern Caliiomia - CAIWoroia State Assocb uo,s Wmbady0vWtnrM"ctbaaeh.ce.n T: 949.467.2744 C: 949734.9636 MICHELLE DEVINE, CMM HMCC Northoa*t - NarL C lino • Smth Carolina . Los Angeler Cow-ry . Vort;cal Market Pharmaceuticals NulyditelAmway • Ormto Pacific Communication*. Ring-,Aswc ter mdaviM Aitmwp0rtb4a0h.com T: 949.7%65307 C: 714.305.9539 LORI ROY 5out ham 05. R•mtnida County. Sen 8emardino Cwmy • San Diego County Hospitality Performsne.o Natwuk(HPN) Ia4{al dtnowpwtbo h.cam T- 949.4673754 C:949.S14.4872 AMANDA KLIEM CO. Md, N V, Ut. VA, Washington DC - Anahom. C951a Mesa. Newpom Beach . M" ti Sento Ann - Mng Sites Zwurca • J N R Inc. - Pec;fic Life manda[u ,4it newport6- h.evm 7:949.467.2743 C:949S14,1276 EN RIGUE PAULO MiAwost • R.m�i��gflrengrCovnty .nr;qu.[d�;sirnewportbwck.em T:949.467.27S0 0:714.309.0732 NEWPORTBEACHANDCO.COM 439 12-144 CONFERENCE SERVICES During the meetings planning process, the team offers clients insider perspective on Newport Beach. Conference Services assists with connecting meeting -planner clients to local vendors, venues and services. The Conference Services team forges strong partnerships with local businesses to ensure the meeting planners receive premier service and the most positive experience for their attendees. Additionally, the team works with meeting planners to help build attendance for their upcoming meeting in Newport Beach. Through an online, meeting -planner toolkit, the Conference Services and Marketing teams plan to build a suite of useful online tools to help planners promote their Newport Beach meetings to build attendance and encourage pre-and-post conference leisure stays. MARKETING The Newport Beach & Company Marketing team is divided into two functional areas: Marketing & Strategic Partnerships and Destination Storytelling teams. Marketing services and integrated marketing campaigns to drive overarching brand awareness of Newport Beach as a premier meetings destination. It also promotes Group Sales as an elite sales team that services its meeting -planner clients with industry-leading sales and services. The Marketing & Strategic Partnerships team comprises digital marketing, marketing research, graphic design, email marketing, brand development and advertising services. The Destination Storytelling team provides public relations, social media, content marketing, video storytelling and earned media services to tell the Visit Newport Beach story to the meeting planner audience. �o MARKETING &STRATEGIC PARTNERSHIPS The Marketing & Strategic Partnerships team creates the marketing vehicles or channels to distribute the destination storytelling and sales messages. They create websites, email templates, graphics, design, art direction, events, marketing research, advertising campaigns, and media buys as ways to distribute content that the Destination Storytelling team creates. The goal with those marketing channels is to create effective and efficient ways to reach targeted meeting planners with the right message at the right time and in the right format (e.g. website, tablet, mobile, email, social media, video, events, etc.). Through those channels the goal is to educate the planner about the meetings destination and the value proposition of working with the Group Sales team to drive incremental booked meetings in Newport Beach. 140 FISCAL YEARS 2019-2020 DESTINATION -B-USINESS PLAN 12-145 Newport Beach & Company's Marketing & Strategic Partnership team manages integrated, digital and traditional marketing campaigns to educate meeting planners about Newport Beach and drive incremental leads to the Group Sales team. Over the next two fiscal years, they will lead the creation of a new meetings website and new brand campaign with input and advice from the Group Sales team. They will execute co -branded events (combining leisure and meetings clients/media) events in Canada and in the United States to create larger, more cost-effective events. And, they will provide the marketing research and analytics to foster research -driven sales and marketing decisions. This team will use digital marketing (websites, email, social media, blogs) to connect with meeting planners, which is one of the most vital and efficient ways to reach targeted planners in key markets. This includes pre-and-post tradeshow email marketing, client event e -invitations and a new meeting planner e -newsletter. With refinement and improved messaging, group e -communications will serve as a key marketing and educational tool to reach planners and potential clients—keeping Newport Beach top -of -mind. This team will work closely with Group Sales to ensure these communications reflect the appropriate audience and tradeshow in a timely, most effective manner. ODESTINATION STORYTELLING The Destination Storytelling team provides public relations, social media, content marketing, video storytelling and earned media services to tell the Visit Newport Beach story to the meeting planner audience. This team crafts the overarching narrative and brand story about the destination and the value of working with Group Sales through everything they create—from videos to television content for Newport Beach TV, from blogs and social media posts to email campaigns, and from public and media relations. This team will put a renewed focus on generating free, positive earned media about Newport Beach as a premier meetings destination in industry trade publications and regional media surrounding Newport Beach. The overarching goal of this team is to keep Newport Beach and the sales team top -of -mind for media or influencers writing about conferences and meetings locations. Through social media engagement and new, original content development, this team will keep planners informed on the latest about the destination, its premier sales team and industry trends. Linkedln and blogs will continue to be the area of focus for the destination storytelling with an added emphasis to provide individualized content for each national account director to send through their personal social media connections to form lasting bonds with clients. The strong, in-house video production team elevates the destination and sales storytelling capabilities and transports planners and potential clients to Newport Beach via virtual or visually stunning video experiences. Sizzle reels shown at conferences, stunning drone aerial footage and 360 -degree tours of hotel meeting space create a more vivid picture of the destination. Video in all of its formats will continue to be an essential tool in the coming fiscal years. NEWPORT BEACHANDCO.COM 141 12-146 VISIT NEWPORT BEACH, INC. GROUP SALES & MARKETING BUDGET GROUP SALES BUDGET GROUPBUDGET ALLOCATION Revenue $412431884 $4,431,001 Opera inExpenses $1,771,595 $1,782,088 Advertising $325,000 $2751000 Community Relations $166,789 $190,000 Digital Marketing/Website $14,500 $12,000 PR/Communications $801000 $100,000 International Marketing Initiatives $901000 $55,000 Trade Shows $375,000 $425,000 Sales Group Enhancement Credit $300,000 $355,000 Hosted Industry Events $46,964 $45,000 Industry Partnerships/Sponsorships $248,964 $215,000 Site Inspections $45,000 $81,433 Client Events $75,000 $125,000 Conference Services $1,000 $1,000 Database/ Prospecting $1001000 $851000 Special Promotions $801000 $100,000 Customized Destination Support $524,072 $584,480 142 FISCAL YEARS 2019-2020 DESTINATION BUSINESS PLAN 12-147 GROUP SALES % OF BUDGET ■ INDUSTRY PARTNERSHIPS/SPONSORSHIPS PR/COMMUNICATIONS ■ CLIENT EVENTS SPECIAL PROMOTIONS ■ DIGITAL MARKETING/WEBSITE ■ HOSTED INDUSTRY EVENTS ■ INTERNATIONAL MARKETING INITIATIVES CUSTOMIZED DESTINATION SUPPORT ■ SALES GROUP ENHANCEMENT CREDIT ■ TRADE SHOWS ■ SITE INSPECTIONS ■ COMMUNITY RELATIONS ■ ADVERTISING DATABASE/PROSPECTING NEWPORTBEACHANDCO.COM 143 12-148 NEWPORT BEACH & COMPANY DINE NEWPORT BEACH MISSION STATEMENT Dine Newport Beach is a strategic marketing initiative cooperatively created and managed 6y Newport Beach & Company and the Newport Beach Restaurant Association (NBRA) and funded in part via the Newport Beach Restaurant Business Improvement District (RBID) to enhance the economic vitality of the Newport Beach culinary community. Created to keep Newport Beach top- . • of -mind and relevant in a competitive culinary marketplace, Dine Newport Beach showcases and promotes Newport Beach, California as a premier dining - - destination offering innovative cuisine, - fresh fare, diverse experiences and exceptional restaurants. . y r • • ■ ■ • NEWPORT B-ACH 144 FISCAL YEARS 2019-2020 DESTINATION BUSINESS PLAN 12-149 ff ■ � � ■ ■ � w � r e ` r■ r 1 i NEWPORT BEACH ANDCO.COM 145 12-150 'o MARKETING &STRATEGIC PARTNERSHIPS 1 ADVERTISING Marketing campaigns with fresh creative and messaging will generate consumer awareness and keep the Newport Beach's culinary community and DineNB.com top -of -mind in the market. Advertising will appear in a variety of media including digital, print, and partner channels. V SIGNATURE EVENT NEWPORT BEACH RESTAURANT WEEK Dine Newport Beach will produce Newport Beach Restaurant Week that not only promotes the participating local restaurants, but also positions Newport Beach as Orange County's premier dining destination. Newport Beach & Company will work with the N BRA Board to promote participating restaurants through an integrated campaign. Additionally, Newport Beach & Company supports the event kick-off with an event to generate public excitement. V WEBSITE The Dine Newport Beach website, DineN B.com, will add relevant content, partner imagery, dining guides, curated dining experiences and user-friendly navigation. The team strive to improve the website's search engine optimization via best practices and focus on Newport Beach dining and restaurant keywords to index higher in organic search. Focus will be on keyword research, volume and competitor analytic tracking. V CONCIERGE SERVICE Dine Newport Beach provides a toll-free phone number serviced by the Visit Newport Beach concierge located at Fashion Island. The concierge service provides restaurant and dining recommendations and reservation assistance. V STAKEHOLDER RELATIONS Dine Newport Beach will engage Newport Beach Restaurant Association (NBRA) restaurants, partners and local stakeholders with e-mail and occasional print communications. The quarterly NBRAe-newsletter includes information on Newport Beach Restaurant Business Improvement District news and meetings, promotional opportunities, as well as industry information and events. 146 FISCAL YEARS 2019 -2020 -DESTINATION B4JSINESS PLAN 12-151 DESTINATION STORYTELLING 7 MEDIA RELATIONS Dine Newport Beach will develop relationships and increase engagement with food and travel writers, influential lifestyle bloggers and media professionals to ensure that the local culinary community, stakeholders and their promotions and events receive editorial coverage in local, regional and national media outlets throughout the year. V BLOC Dine Newport Beach strives to stay ahead of dining trends. The Dine Newport Beach blog develops original content weekly to promote Newport Beach restaurants to the "foodie" community. Blog content will not only be provided by Dine Newport Beach, but also by food and lifestyle bloggers and influencers. V EMAIL The Dine Newport Beach e -newsletter will deliver relevant information to diners. The newsletter will provide motivating content including culinary round -ups, dining trends, restaurant offers and promotions, and dining events. Dine Newport Beach will continue to focus on email acquisition strategies to grow its subscriber list and leverage partner channels to deploy program messaging. V SOCIAL MEDIA Trending culinary topics, images and video content on the existing social channels will drive followers and build online engagement. Dine Newport Beach has an active following on Facebook, Instagram, and Twitter. Social influencers will be used as appropriate to promote Newport Beach restaurants and Dine Newport Beach channels to gain a wider following with new audiences. V VIDEO PRODUCTION Messaging and content about Newport Beach dining will be produced in the Newport Beach TV digital media center. An increased library of video content will be utilized to tell the story of Newport Beach as a dining destination and deployed through a variety of Dine Newport Beach and partner channels. Upcoming projects include continuing the Culinary Journeys series the and Weekly Bites series. NEWPORTBEACHANDCO.COM 147 12-152 ENTERPRISE NEWPORT BEACH Enterprise Newport Beach serves as the economic development unit of Newport Beach & Company. By supporting local associations, the organization helps infuse the brand into more visitor touchpoints, and helps market the local businesses that breathe life into Newport Beach's vibrant neighborhoods. Newport Beach & Company serves as the community -marketing agency for two of the city's merchants associations, Balboa Village Merchants Association (BVMA) and Balboa Island Marketing, Inc. (BIMI). Newport Beach & Company aims to strengthen the overall interest of each unique neighborhood, the overarching destination and support their governance, working with each group's advisory committee to understand and reach their long-term goal �' 1 YEARS 2019--202-0 DESTINATION BUSINESS PLAN 12-153 -MMMIA NEWPORTBEAC HANDCO. COM 149 12-154 ABOUT BALBOA VILLAGE Situated along the Newport Beach coastline, Balboa Village is bustling with visitors along its two boardwalks and the Balboa Pier. With a host of dining and local retailers, Balboa Village has offered an affordable, laid-back coastal experience since 1936. The Fun Zone and ExplorOcean in Balboa Village provide entertainment for all ages. Visitors can stroll the Bayside boardwalk, or take a long, relaxing ride on the historic Ferris wheel, which offers fantastic views of Newport Harbor and the Pacific Ocean. Balboa Village stretches from The Fun Zone and Balboa Ferry cross to Balboa Pier and the beaches. The heart of the village is near the world-famous surfing hangout, The Wedge, which is known for its amazing waves. With various water activities throughout the three-mile Newport Harbor, the annual Newport to Ensenada sailboat race begins at Balboa Village every April. ABOUT BALBOA ISLAND The Marine Ave. Business Improvement District was formally incorporated in 1998 and was chartered to develop the Marine Avenue commercial district of Balboa Island as a quality shopping destination for visitors. In 2013, the group changed to a Merchant Association and became known as Balboa Island Marketing Incorporated (BIMI). The merchant association's mission is to provide joint marketing, advertising, and public infrastructure support for the business district; and to work jointly with the City of Newport Beach to accomplish more than either the City or businesses could by themselves. 150 FISCAL YEARS 2019-2-020 —DESTINATION -B4JSINFSS PLAN 12-155 MARKETING &STRATEGIC � PARTNERSHIPS Newport Beach & Company will continue to offer consistency in branding and messaging and the ability to collaborate with each merchant association to help support their strategic marketing plans. The community -marketing agency's paid media approach is to build a media plan that will focus on both local and drive markets to increase awareness of first-time guests and repeat visitors. Part of the advertising focus will be aligning with content that allows Newport Beach & Company to weave the Balboa Island and Balboa Village story within relevant environments as well as leveraging existing efforts within the overarching media plan for the destination. Newport Beach & Company will provide plans and recommendations specific to each association to help each organization meet their goals. Newport Beach & Company has leveraged it's digital presence to amplify the merchants associations by maintaining the organizations' websites and integrating relevant content onto Visit Newport Beach channels. Optimizing the organizations' digital presence helps efficiently promote neighborhood merchants and events. QID DESTINATION STORYTELLING Through media and public relations, Newport Beach & Company will focus on creating interest and demand with the leisure audience not only for Newport Beach but those looking to explore Balboa Village and the Balboa Island neighborhoods. Plans include providing marketing and publicity for local events to drive attendance by using press releases, blog support and event calendar postings. Newport Beach & Company supports the associations' social media presence, primarily through Facebook and Instagram. Regular postings keep consumers engaged and informed on neighborhood activities. Additionally, social influencers will be used as appropriate to introduce the neighborhoods to new audiences. Newport Beach & Company will promote the two merchant associations, their great work and their partnership with Newport Beach & Company via local and regional media relations. NEWPORTBEACHANDCO.COM 151 12-156 NEWPORT BEACH & COMPANY AT NEWPORT BEACH Celebrate Newport Beach promotes signature events that encourage visitors to come to Newport Beach, while offering premier experiences in residents' backyards. Through marketing, sponsorship and event support, Celebrate Newport Beach provides ongoing, year-round, focused attention on elevating brand -centric events and leveraging those events for the benefit of the entire Newport Beach community. Celebrate Newport Beach also focuses on establishing strategic partnerships for Newport Beach that will provide sponsorship revenue to some signature events and key marketing initiatives. Current Celebrate Newport Beach -supported events include: • Newport Beach Christmas Boat Parade • Newport Beach Film Festival • Newport Beach Wine & Food Festival • Pacific Wine & Food Classic • Hyatt Regency Jazz Festival • Hyatt Regency Summer Concert Series • Hoag Golf Classic • Additional brand -defining events Media support ranges from guidance on marketing tactics to making strategic media placements. Level of support is at the discretion of the Newport Beach & Company Marketing team. All Newport Beach events have the opportunity to promote on appropriate Newport Beach & Company-owned channels. 152 FISCAL YEARS 2019-2020 DESTINATION BUSINESS PLAN 12-157 09 • -0 ----------- -------- N EWPO RTBEAC HAN DCO.COM 153 12-158 CHRISTMAS BOAT PARADE As one of the community's longest and most -renowned events, the Newport Beach Christmas Boat Parade is the city's most cherished tradition. Visitors and residents celebrate the cavalcade of holiday -decorated and lit yachts, electric boats and kayaks every December in Newport Harbor. In 2014, Newport Beach & Company and the Newport Beach Chamber of Commerce, the event organizer, entered into a strategic partnership, where Newport Beach & Company oversees all marketing, public relations, sponsorship efforts and consumer enhancements. Xo MARKETING & STRATEGIC PARTNERSHIPS Newport Beach & Company creates an integrated -marketing campaign to raise awareness and attendance for the Christmas Boat Parade. Newport Beach & Company activates the media buy making strategic advertising placements to both inform locals and entice visitors to attend the event and stay overnight in Newport Beach. Campaigns have included digital, radio, television and print placements. ODESTINATION STORYTELLING Newport Beach & Company serves as the primary media resource for the Christmas Boat Parade. The media relations team handles press inquiries and pitches international, national, regional and local media outlets for positive news coverage about the event. Newport Beach & Company also hosts a media event on the opening night of the Christmas Boat Parade to gain beneficial recognition and create awareness to support the remaining nights of the event. The event is further elevated through securing celebrity and community grand marshals make a guest appearance each night of the parade. The Newport Beach & Company Marketing team produces all ads and informational materials including the parade -viewing map. Additionally, the Christmas Boat Parade produces a program, and the Newport Beach & Company Marketing team coordinates the content and design. The Newport Beach TV camera crew films the parade each year and airs a special program on the Newport Beach government access channel. The video team also creates consumable content for social channels and 6 -roll footage for media outlets. 154 FISCAL YEARS 2419-2020 DESTINATION -BUSINESS PLAN 12-159 YEAR-ROUND SIGNATURE EVENT SUPPORT Newport Beach & Company supports additional brand -defining events that attract visitors and benefit the Newport Beach community. Each event calls for different levels of support and the expertise of the Newport Beach & Company marketing team reach the right audience. 0 MARKETING &STRATEGIC PARTNERSHIPS Newport Beach & Company provides marketing guidance for signature events. The team will provide an advertising recommendation based on each event's audience and secures media placements as needed. All Newport Beach events can promote on Visit Newport Beach.com. Because of the strategic structure of Newport Beach & Company, other business units can be leveraged to promote on the relevant social media channels and websites, exposing new audiences to events in the city. ODESTINATION STORYTELLING The Newport Beach & Company media relations team supports signature events by pitching media to attend and generate positive media coverage as relevant. The event and Newport Beach teams collaborate to find interesting story angles to pitch to national, regional and local media. Partners can provide content that can be used on appropriate Newport Beach & Company outlets and social channels to engage with the additional Visit Newport Beach audience, both local and potential visitors. Newport Beach & Company also promotes events through social media giveaways to engage followers. NEWPORTBEACHANDCO.COM 155 12-160 NEWPORT BEACH & COMPANY NEWPORT BEACH Newport Beach TV offers high-quality, visually interesting video content used to support the tourism branding (marketing and destination messaging) and sales initiatives of Visit Newport Beach. In addition, Newport Beach TV provides production services and programming to the City of Newport Beach's government access channel. \ B T V �r NEWPORT BEACH TELEVIS10N 156 FISCAL YEARS 201 -4 -2020 -DESTINATION B-USINESS PLAN 12-161 Liw 2 e-) 7u 4f j tz- ZZ NEWPORT BEACH AN DCO.COM 157 12-162 OVERARCHING TWO -PRONG STRATEGY: GOVERNMENT ACCESS CHANNEL PROGRAMMING • Produce City of Newport Beach government access television programming and content as well as provide branded content that tells the Newport Beach brand story to local residents and visitors. • The City of Newport Beach TV channel has upwards of 90% penetration and can be found on Cox and Time Warner. Programming is also archived on the city website. • Regular programs include Wake Up! Newport, NB Talk with Tom Johnson, Newport Beach Public Library, Speak Up Newport, City Council meetings, The Village Green, and more. • Looking ahead for FY 19, the city channel will receive an updated look with formalized graphics package across its schedule. VIDEO LIFESTYLE PROGRAMMING • Video is a strong and compelling tool used in tourism marketing. Avisual connection to the destination, content produced by NBTV is used to showcase the brand and bring the destination to life. Content is distributed through a variety of channels that include online channels; YouTube and other social media platforms covering Visit Newport Beach, Dine Newport Beach, Balboa Island and Balboa Village; other various marketing points such as e -newsletters, Visit Newport Beach blog, and the upcoming mobile concierge; and the aforementioned City of Newport Beach TV channel. . Across FY19 and FY20, goals for the lifestyle programming are six -fold: o Increase production of new shows already in the line-up, which include Culinary Journeys, Neighborhood Journeys, and special event coverage. o Develop new programming that highlights the various offerings and unique attributes of Newport Beach that are of interest to residents and visitors. Examples include a Behind -the -Scenes show or a cinematic look at Newport Beach via a mini movie or brand film. o Explore external content distributors to supply videos therefore extending reach of the Newport Beach brand to new viewers. National examples include Brand USA and Food Beast. Local examples include in -room channels at hotel properties and Hoag Hospital. 158 FISCAL YEARS 201 -9 -2.02} -DESTINATION BUSINESS PLAN 12-163 o Capitalize on the popularity and interest in live video streaming. Look to destination partners for opportunities in which Visit Newport Beach can have a presence during activities and events of interest for viewers. o Ramp up production of virtual reality (VR) and 360 -degree videos. This application is quickly gaining traction as it lets viewers experience the brand in an immersive and realistic way. o Work with Group Sales and hotel partners to produce videos of meetings spaces to augment online collateral and sales tools. �-- NEWPORTBEACHAN DCO.159 12-164 r 1� . R-4 V 0. lid r,4 AM e2 160 FISCAL YEARS 2019-2020 DESTINATION BUSINESS PLAN 12-165 a r / ■r t -_ % 00 ol ft/ O,z Jw GOVERNANCE f 162 FISCAL YEARS 2019-2020 DESTINATION BUSINESS PLAN 12-167 GOVERNANCE 164 EXECUTIVE COMMITTEE & BOARD OF DIRECTORS 165 TBID BOARD OF DIRECTORS 155 MARKETING COMMITTEE 156 NEWPORT BEACH & COMPANY TEAM 12-168 EXECUTIVE COMMITTEE CHAIRPERSON VICE CHAIRPERSON TREASURER SECRETARY Debbie Snavely Homer Bludau Candace Bisconte Linda M. Beirnfohr Newport $each Marriott Former City Manager ACCESS Hornblower Cruises & Events Hotel & Spa Destination Services MEMBER -AT -LARGE MEMBER -AT -LARGE MEMBER -AT -LARGE Sam EI-Rabaa Doug Wood Russ Kline Balboa Bay Resort City of Newport Beach American Express Appointee G O V E R N A N C E BOARD OF DIRECTORS JOE ADAMS SAM EL-RABAA DAN MATUSIEWICI TANYATHOMAS Discovery Cube/Ocean Quest Balboa Bay Resort City of Newport Beach Fashion Island CRAIG BATLEY ANDREA FAIRCHILD CAROL MCDERMOTT JIM WALKER Burr White Realty Athlete2Enterprise, Inc. Entitlement Advisors, LLC Bungalow Restaurant ADAM BEER MICHAEL GELFAND SID RAMANI GERARD WIDDER Lido House Newport Dunes Waterfront Hyatt Regency Newport Beach Fashion Island Hotel LI NDA M. BEI MFOHR Resort & Marina STEVE ROSANSKY DOUG WOOD Hornblower Cruises & Events BRIAN KEYS Newport Beach Chamber of City Appointee CANDACE BISCONTE Renaissance Hotel Newport Beach p Commerce OPEN ACCESS Destination Services RUSS KLINE GREGG SCHWENK Newport Beach American Express Newport Beach Film Festival Marriott Bayview HOMER BLUDAU Former City Manager DENNIS KUHL DEBBIE SNAVELY Angels Baseball Newport Beach Marriott TOM CLEARWATER Hotel & Spa Hyatt Regency John Wayne Airport CHIEF JON LE WIS Newport Beach Newport Beach TOM DONOVAN Police Department The Resort at Pelican Hill 164 FISCAL YEARS 2019.2020 DESTINATION BUSINESS PLAN 12-169 MARK S T ING CO M M ITT E E Chairperson CHAD CERETTO Marriott International Vice Chairperson KEVIN LORTON Hornblower Cruises & Events Secretary LINDSEY RODRIGUEZ Hyatt Regency Newport Beach MICHAEL LORENZ The Irvine Company, Resort Properties BOB ARRIVILLAGA Fashion Island Hotel Newport Beach LYNNE DIFRANCESCO Renaissance Hotel Newport Beach MARY LOC EY City of Newport Beach MARCELFORD Balboa Village Merchants Association NANCY GARDNER Newport Bay Conservancy NICOLE HAY 21 Oceanfront Restaurant/Doryrnan's Oceanfront inn DAN MILLER The Villa e Inn DIANA PARSEL Irvine Company Retail Properties ELIZABETH STEFAN Balboa Bay Resort MAUREEN SLOAN HelmsBriscoe JAN HOLLIS Hyatt Regency John Wayne Airport Newport Beach BEN STI NNETT Newport Beach Marriott Hotel & Spa KATE STAR R The Resort at Pelican Hill OPEN g Jahn Wayne Airport, ANGELA CORTRIGHT Orange County r Spa Gregorie's N. TOURISM BUSINESS IMPROVEMENT -- DISTRICT [TBID) BOARD OF DIRECTORS Chairperson DEBBIE SNAVELY Newport Beach Marriott Hotel & Spa ADAM BEER Lido House TOM CLEARWATER Hyatt Regency John Wayne Airport Newport Beach SAM EL-RABAA Balboa Bay Resort MICHAEL GELFAND Newport Dunes Waterfront Resort & Marina BRIAN KEYS Renaissance Hotel N 'S1 D RAMANI ,..` }�yatt Regency New{ '[L d � i79�iV GERARD WIDDER Fashion Island hotel Newport Beach OPEN r Newport Beach Marriott Bayview A Gary C. Sherwin, CDME PRESIDENT & CEO E XECUTIVE TEAM Michelle Donahue, CDME SENIOR VICE PRESIDENT OF GROUP SALES Doug McClain, CDME SENIOR VICE PRESIDENT & CHIEF MARKETING OFFICER ADMINISTRATION Dina Alleluia -Carr FINANCE COORDINATOR Lesley Swain, CDME CHIEF FINANCIAL OFFICER T BEA C H VISIT NEWPORT BEACH,INC GROUP SALES AMANDA KLIEM Director of Sales MICHELLE DEVINE National Account Director KIMBERLY DUN NEGAN National Account Director LORI HOY National Account Director ENRIQUE PAULO National Account Director JANE LOENHORST Group Marketing & Communications Director JENNIFER BRANNON Conference Service Manager ERIN STAPLEY Sales & Research Coordinator 166 FISCAL YEARS 2019-2020 DESTINATION BUSINESS PLAN 12-171 Catherine Kennedy DIRECTOR OF ADMINISTRATION/ ASSISTANT TO TH E CEO N E W P 0 R MARKETING KATY DENNIS COLLEEN COSTELLO Senior Director of Marketing Marketing Manager & Strategic PartnersHps JU LIANA GI LES SARA GO RGO N Integrated Marketing Manager Senior Director of Destination Storytelling MELISSA JACOBI JACKIE INFANTE Marketing, Communications Creative Director & Sponsorships Manger MARIA LUCAS VERONICA FLORES Director of Commvnications Communications Coordinator BRETT ERSKINE GORDON SPENCER Video & Multimedia Manager NBT'V Executive Producer BRIANNA GRIMALDI KIM THOMPSON Digital Marketing Manager Manager of Special Events Dina Alleluia -Carr FINANCE COORDINATOR Lesley Swain, CDME CHIEF FINANCIAL OFFICER T BEA C H VISIT NEWPORT BEACH,INC GROUP SALES AMANDA KLIEM Director of Sales MICHELLE DEVINE National Account Director KIMBERLY DUN NEGAN National Account Director LORI HOY National Account Director ENRIQUE PAULO National Account Director JANE LOENHORST Group Marketing & Communications Director JENNIFER BRANNON Conference Service Manager ERIN STAPLEY Sales & Research Coordinator 166 FISCAL YEARS 2019-2020 DESTINATION BUSINESS PLAN 12-171 NEWPORT BEACH TV DOMINIC DIMARE Newport Beach TV Camera Crew LUIS HERRERA Newport Beach TV Camera Crew ED OLEN Newport Beach TV Camera Crew FASHION ISLAND V1.51TOR CENTER HEATHER SECKINGER Lead Visitor Concierge + •' f�+ ' KAREN FLEMING i. Visitor Conciergep: _�# LEON RODGERS Visitor Concierge + i R r RRi� i,11}'t 1-2 AN D #6 - BEST 'ALI FORN IA BEAC H )SA TODAY'S 10 BEST `1 - 2018 BEST PLACES TO VISIT .IVABILITY.COM 1 � • 1 { a � ' 1 • 1 • e , • 1 f , • 1 1 { 1 e 1 1 i 1 ■ ■ � - r � 1 1 f � � 1 • t \ \ ♦ I A � • � � • f I 168 FISCAL'YE-ARS 2019 2020 DEST'INAT ION [9USINE,S.PLAN ' . ' 12-173 _ fA I ►� f 2 0 1 7 GOLD ADRIAN AWARD - NEWPORT BEACH FILM FEST UK HONOURS H SMAI DESTINATION PARTNER OFTHEYEAR IN A SECONDARY MARKET HELMSBRISCOE CVB OF THE YEAR - SECON DARY MARKET CONFERENCEDIRECT w O' d' 2 0 1 6 PLATINUM - NONPROFIT WEBSITE ADDY AWARDS SILVER - BRANDSCAPE VIDEO ADDY AWARDS BRONZE - 2015ANNUAL REPORT ADDY AWARDS TOP 10 BEST WEST COAST BEACHES (LITTLE CORONA DEL MAR AN D CRYSTAL COVE) USA TODAY TOP 10 BEST BOARDWALKS USA TODAY TOP 25 BEACHES IN THE US (NEWPORT BEACH AND CRYSTAL COVE) TRIPADVISOR o L B E A C H A D E S & C O M P A N Y 2 0 1 5 INTERNATIONAL 5 -STAR DIAMOND AWARD AMERICAN ACADEMY OF HOSPITALITY SCIENCES TOP 30 BEST CITIES IN AMERICA CONDE NAST TRAVELER HAPPI EST SEASI DE TOWNS (CORONA DEL MAR) COASTAL LIVING NEWPORTBEACHANDCO.COM 169 12-174 INDUSTRY T C A/BTESTING I COR SPLIT TESTING) Comparing two versions of a we6 page or ads to see which one performs better ADR Average daily rate for hotel accommodations ARES aRes Travel is Visit Newport Beach's private- la6el online 600king engine and hotel, airline and car rental reservation system 0 BABY BOOMERS A person born in the years following World War II, when there was a temporary marked increase in the birth rate B2B Business -to -Business B2C Business -to -Consumer BAFTA British Academy of Film and Television Arts; annual awards held in Fe6ruary BID Business Improvement District BIMI Bal6oa Island Marketing Inc.—the merchant association representing Bal6oa Island merchants, which is serviced through Newport Beach & Company's economic -development business unit, Enterprise Newport Beach BLACK DIAMOND Creative and communications agency who provides in -market pu6lic relations, travel trade representation and event support for Visit Newport Beach, Inc. and Visit California in the United Kingdom BOD Board of Directors BRAND USA Destination marketing organization for the United States, which 6egan in 2009 with the Tourism Promotion Act BRAND PILLARS The most influential attri6utes of the Visit Newport Beach brand BRAND PERSONAS Personality attributes of the Visit Newport Beach brand BRAND PROMISE Statement made to customers that identifies expectations for all interactions with Newport Beach & Company BRAND VALUE Esta6lishing a brand that is memora6le, easily recogniza6le to the consumer and superior in quality BUSINESS UNITS The various segments of Newport Beach & Company: Visit Newport Beach, Inc. - Leisure Marketing, Visit Newport Beach, Inc.—Group Sales, Cele6rate Newport Beach, Dine Newport Beach, Enterprise Newport Beach, Film Newport Beach, and Newport Beach TV BVMA Bal6oa Village Merchant Association—the merchant association representing Bal6oa Village merchants, which is serviced through Newport Beach & Company's economic - development business unit, Enterprise Newport Beach CALTRAVEL California Travel Association, the hospitality and travel industry's trade association in California reflecting the unified voice for California's travel and tourism industry 170 FISCAL YEARS 2019-2020 DESTINATION BUSINESS PLAN 12-175 0 a a CDME Certified Destination Management Executive, DMO industry's highest educational achievement CDM Corona del Mar, neighborhood in Newport Beach CO-OP Co-operative programs and opportunities that involve multiple groups or partners working together on a common program, campaign or event CONFERENCEDIRECT Providerofglo6al meeting -planning solutions; third -party meeting planners CRM Customer -relationship management system—database of customer data CVB Convention & Visitors Bureau, now known as Destination Marketing Organization (DMO) CVENT Event -management technology company, enables increased group 6usiness demand through targeted advertising and online meetings requests for proposals (RFPs) 0 DESTINATION ANALYSTS, INC. Tourism market research contractor DESTINATION INTERNATIONAL Destination International,glo6al trade association for official destination marketing organizations worldwide DMO Destination Marketing Organization, formerly known as Convention & Visitors Bureau E-MAIL SEGMENTATION Separating audiences into different groups to provide content best suited to their interests EVENT IMPACT CALCULATOR Destination International tool to measure the economic impact of an event to destinations ERP Enterprise resource planning, business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back office functions related to technology, services and human resources E.U. European -Union, A political union, to which the member states of the European Economic Community are evolving D FAM Familiarization tour or trip, hosting a travel agent/tour operator, member of the media or meeting planner to increase destination knowledge and generate interest FISCAL YEAR Newport Beach & Company's fiscal year runs July 1 to June 30 each year FICP Financial & Insurance Conference Planners FIT Frequent individual traveler FULFILLMENT Fulfilling 6y mail visitor -requested collateral pieces GCC Gulf Cooperation Council, political and economic alliance of six Middle Eastern countries—Saudi Ara6ia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman GENERATION X Thegeneration born after that of the baby boomers (roughly from the early 1960s to mid 1970s) GDP Gross Domestic Product, the monetary value of all the finished goods and services produced within a country's borders in a specific time period GUERRILLA MARKETING Innovative, unconventional technique aimed at o6taining maximum exposure 0 HELMSBRISCOE Site -selection agency, consultants focused on the meeting planning process; third -party meeting planners HOUSEHOLD INCOME Measure of the combined incomes of all people sharing a particular household or place of residence NPN Hospitality Performance Network Glo6al; third -party meeting planners 0 IEG Company that offers consulting, research and valuation services related to event marketing, sports marketing, cause marketing and sponsorship IMEX America's worldwide exhibition for incentive travel, meetings & events NEWP0RTBEACHANDC0.00M 171 12-176 172 N D U 5 T INTEGRATED MARKETING Utilizing 6oth modern and traditional marketing strategies, to optimize the communication of a consistent message IPW U.S. Travel Association's premier travel - industry marketplace U JWA John Wayne Airport, Orange Country - only commercial -service airport in Orange County E KPI Key performance indicator U LEAD Meeting planning request of rooms, event space or goods and services sent to qualified partners LG BT Lesbian, Gay Bisexual &Transgender MILLENNIAL A person reaching young adulthood around the year 2000 MAs Merchant Associations, examples include Bal6oa Island Marketing, Inc., and Balboa Village Merchants Association MICE Meetings, Incentives, Conventions & Exhibitions R Y TER MINT (Destination Marketing Association International's (DMAI) meeting -industry database MOBILE RESPONSIVE An approach to web design aimed at crafting sites to provide an optimal viewing and interaction experience across a wide range of devices (from desktop computer monitors to mo6ile phones) MPC Monetary Policy Committee, a committee of the Bank of England, which meets for three and a half days twelve times a year to decide the official interest rate in the United Kingdom D NBCC Newport Beach Cham6er of Commerce, promotes economic opportunity to enhance the social and civic environment of Newport Beach NBRA Newport Beach Restaurant Association NBTV DIGITAL MEDIA CENTER Newport Beach & Company's in-house video production suite and television studio NEED PERIODS Referencing a period of time when visitor volume is down NEWPORT BEACH NEIGHBORHOODS Bal6oa Island, Bal6oa Peninsula, Balboa Village, Cannery/Lido Marina Village, Corona del Mar (CDM), Fashion Island/ Newport Center, Airport District, Mariner's Mile/Westcliff, Upper Newport Bay, Newport Coast/Crystal Cove 0 OCBJ Orange County Business Journal FISCAL YEARS 2019-2020 DESTINATION BUSINESS PLAN M 5 12-177 OCVA Orange County Visitors Association, provides visitor advocacy, communications and brand - marketing support to Orange County partners OTA Online Travel Agency such as Expedia, Travelocity, Orbitz or Ctrip (in China) 0 PPC Pay -per -click (online ads or promoted videos) RBID Restaurant Business Improvement District, which funds Newport Beach Restaurant Association REFERRAL List of qualified Newport Beach & Company partners sent to meeting planners or media outlets RFP Request for proposal RevPAR Revenue per available room, performance metric in hotel industry ROI Return on investment ROOM NIGHT Statistical unit of occupancy; one hotel room occupied for one night 9 SALES MISSION Selling and showcasing Newport Beach in other markets SITE VISIT (also known as Site Inspection) Tour of property or meeting space to familiarize a potential client U.S. TRAVEL ASSOCIATION SEM National, non-profit organization Search -engine marketing—Internet representing all components of the marketing that helps improve visi6ility in travel industry that generates $2.1 search engine results trillion in economic output and supports 15 million Americanjobs 5E0 Search -engine optimization- formatting and writing content to perform at its highest level in online searches VFR Visiting friends and relatives STR Smith Travel Research, Inc.—hotel market VISITCALIFORNIA data & benchmarking reports utilized 6y California Travel & Tourism Visit Newport Beach and Newport Beach Commission, organization with hoteliers mission to develop marketing programs that keep California top -of -mind as a premier travel destination TARGETAUDIENCE Particular group of people, identified as the intended recipient of an advertisement or message TBID Tourism Business Improvement District—hotel-room assessment on the participating lodging businesseswithin city limits of Newport Beach to market Newport Beach as a meetings destination. TRANSIENT Individual traveler not traveling forgrouplmeetings business TRAVELTRADE Collective term for tour operators, wholesalers, and travel agents TRADESHOW Event with exhibitors showcasing products or services TOT Transient Occupancy Tax also known as "bed tax" NEWP0RTBEACHANDC0.00M 173 12-178 DESTINATION BUSINESS PLAN REFERENCES CIC RESEARCH CITY OF NEWPORT BEACH CONVENTION INDUSTRY COUNCIL DEAN RUNYAN ASSOCIATES DESTINATION ANALYSTS, INC. DKSA FORWARD KEYS GREENHAUS JOHN WAYNE AIRPORT, ORANGE COUNTY NATIONAL TRAVEL & TOURISM OFFICE OFFICE OF TRAVEL & TOURISM INDUSTRIES ORANGE COUNTY VISITORS ASSOCIATION OXFORD ECONOMICS PKF STATE OF CALIFORNIA STR, INC. (SMITH TRAVEL RESEARCH) SUCCESSFUL MEETINGS TOURISM ECONOMICS TNS GLOBAL US TRAVEL ASSOCIATION US DEPARTMENT OF COMMERCE TRIPSAAVY TOURISM ECONOMICS VISIT CALIFORNIA YOUGOV V6. sy _" 12-179 .��- t ,.�-�-_ .. . 12-180 w E 'A C Hfolc��, 0 e ort & COMPANY job*— ew ort k.4( VA C H CALIFORNIA im NEWPORT BEACH & COMPANY -1600 NEWPORT CENTER DRIVE -STE.120 NEWPORT BEACH, CA 92660 VISITN EWPORTSEACH-COM - N FWPORTS EAC HAN DCO.COM - 949.719,6100-800.94.COAST 12 8f, 41 12-182 Attachment B "15'T Ort Visit Newport Beach, Inc. Leisure Marketing (TOT) �1N A C H FY2019 and FY2020 Budget FY2019 BUDGET Variance Operating Revenue Revenue 41000 - TOT/TBID Income 5,014,493 5,230,355 215,862 42000 - Partnership Fees 3,000 3,000 - 43000 - Co -Op Advertising Income - - - Total Revenue 5,017,493 5,233,355 215,862 Interest Income - - - Total Operating Revenue 5,017,493 5,233,355 215,862 Expenses Salary and Wages 61010 - Salaries and Wages 77,480 82,160 4,680 61030 - Payroll Tax Expenses 6,113 6,482 369 Total Salary and Wages 83,593 88,642 5,049 Benefits 61140 - Retirement Plan (401k) 5,424 5,751 327 61150 - Flexible Spending Plan - - - Total Benefits 5,424 5,751 327 General and Administrative Expenses Operating Expenses Operating Expenses 64100 - Office Supplies 64101 - Stationary - - 64125 - Computer Software (non-deprec) 6,075 6,075 64130 - Voice and Data - Office 1,140 1,140 64140 - Postage - - 64145 - Shipping Charges - - 64150 -Bank Fees 540 540 64160 - Membership Dues 62,150 65,000 2,850 64170 - Team Meetings - - 64175 - Governance Meeting Expenses 64190 - Business Licensing and Fees - - 64300 - Depreciation Expense 209 (209) 64600 - Business Meals/Entertainment - - - Total Operating Expenses 70,114 72,755 2,641 Insurance 63300 - Board of Directors Insurance 7,900 3,500 (4,400) Total Insurance 7,900 3,500 (4,400) Professional Fees 64205 - Payroll Processing Service - - 64207 - Bloggers 7,800 7,800 64201- Audit Fees 7,500 7,500 64202 - Tax Preparation Fees 2,500 2,500 Total Professional Fees 17,800 17,800 Travel Expenses 65400 - Transportation Costs - - 65405 - Mileage ($0.535/mile 2017) Total Travel Expenses Total General and Administrative 95,814 94,055 (1,759) Advertising Expenses 66101 - Advertising - Purchased 600,000 775,000 175,000 66102 - Advertising - Local Events 40,000 75,000 35,000 66103 - Advertising Promotions - Media - - - 66202 - Ad Production 50,000 75,000 25,000 66203 - Creative Design/Development 100,000 125,000 25,000 66205 - Photography/Video Production 20,000 35,000 15,000 Total Advertising Expenses 810,000 1,085,000 275,000 Marketing Expenses Community Relations 67103 - Community Partner Events 5,000 5,000 - 66212 - Community Sponsorships 35,000 35,000 67101- Research 125,000 125,000 - 67102 - Christmas Boat Parade 95,000 125,000 30,000 67105 - Awards - - - 67107 - Promotional Items 67108 - Company -Sponsored Events - - - 67109 - Hospitality Training 991 1,740 749 Total Community Relations 260,991 291,740 30,749 Marketing Collateral 67301- Inspiration Guide 10,000 10,000 - 67302 - Maps - - 67303 - Special Interest Collateral 10,000 10,000 67311 - Collateral Production Expenses - - 67312 - Collateral Distribution 42,000 42,000 12-182 "15'T �1N OYrF Visit Newport Beach, Inc. Leisure Marketing (TOT) A C H FY2019 and FY2020 Budget Total Marketing Collateral Digital Marketing 67502 - Website Maintenance 67503 - Online Search Advertising 67504 - Digital Advertising 67505 - Online Contests/Promotions 67506 - Mobile Application 67508 - Website Redesign Expenses 67511- Digital Lifestyle Channel Production 66211 - CRM Maintenance Total Digital Marketing Communications/Public Relations 67601- Media Services 67602 - Media FAM Tours 67605 - Media Special Programs 67607 - Media Relations 67608 - Digital Assets/Media Library Total Communications/Public Relations Total Marketing Expenses International Marketing Initiatives 67401- International Brand Awareness Fees 67402 - International TTI FAM Tours 67403 - International Promotions 67404 - International Trade Shows 67405 - International Airfare 67406 - International Accommodations 67407 - International Meals 67408 - International Transportation Costs 67409 - International Other Travel Costs 67410 - International Business Meals/Entertainment 67413 - International Sales Missions Total International Marketing Initiatives NB&Company Fees 68001 - NB&Co Fees Total NB&Company Fees Total Expenses Net Income FY2019 BUDGET 62,000 62,000 125,000 80,000 30,000 50,000 15,000 50,000 8,000 358,000 30,000 97,687 100,000 30,000 9,600 267,287 948,278 145,000 22,000 225,000 325,000 10,500 8,000 2,000 5,000 500 2,000 745,000 2,329,384 2,329,384 5,017,493 125,000 80,000 30,000 50,000 15,000 125,000 8,000 433,006-- 30,000 95,000 161,135 30,000 9,600 325,735 1,112,475 145,000 22,000 250,000 10,500 8,000 2,000 5,000 500 2,000 20,000 465,000 2,382,432 2,382,432 5,233,355 Variance 75,000 75,000 (2,687) 61,135 58,448 164,197 25,000 (325, 000) 20,000 (280, 000) 53,048 53,048 215,862 12-183 ATTACHMENT C Visit Newport Beach- Leisure Marketin�g�� 6wo _AMj,.Goal_j0L_ Actual 2-0/0 of Goal WEBSITE VN B Web Visits 1,191,300 1,198,558 101% SOCIAL MEDIA Social Media Followers 172,000 188,541 110% ADVERTISTING Total Ad Impressions 166,120,000 170,415,338 103% Marketing Room Nights Generated* 61,200 52,000 85% PR Media Placements* 550 515 94% Average Barcelona Score 58 74 128% Key Media Placements 114 98 86% INTERNATIONAL Wholesalers/Travel Agents Trained 205 654 319% *Note: Not final results. Spring Leisure Ad Campaign and Media Placements results provided in August 2018. 12-184 Attachment D NEWPORT BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT FOR FISCAL YEAR 2019 JULY 1ST 2018 THROUGH JUNE 30TH 2019 ORIGINATION: Implemented beginning May 1St, 2009 through an approved ordinance by the City Council, the Newport Beach TBID was amended effective January 291h, 2014. The amendment included a revised assessment from 2% to 3% and a renewal period of ten (10) years. The Newport Beach TBID is a benefit assessment district proposed to help fund marketing and sales promotion efforts for Newport Beach lodging businesses. This is the annual report of the Newport Beach Tourism Business Improvement District (TBID) for the FY2018-2019 fiscal year and is filed with the City Clerk, according to the California Streets and Highways Code Sections 36650. PURPOSE: The Newport Beach TBID is responsible for representing and managing conference, meeting, and group sales efforts in partnership with the eight TBID lodging businesses. These services are designed to benefit the seven properties that will be assessed within the City of Newport Beach as well as generating additional revenue to grow the Newport Beach hotel and tourism industry. The current participating lodging businesses are as follows: • Newport Beach Marriott Resort and Spa • Renaissance Newport Beach Hotel • Hyatt Regency John Wayne Airport Newport Beach • Newport Beach Marriott Bayview • Hyatt Regency Newport Beach • The Balboa Bay Club and Resort • Newport Beach Dunes Waterfront Resort and Marina • Fashion Island Hotel COST BASIS AND REVENUE FOR FY2018-2019: Annual assessment rates are 3% of gross short term (less than 30 days) room rental revenue on the participating lodging businesses within the City limits of Newport Beach. Lodging business stays of longer than 30 consecutive days shall not be assessed. Based on the benefit received, stays by airline personnel and government employees on government business shall not be assessed. Stays at time shares shall not be assessed. 2024 is the renewal year for the TBID. The revenue for FY2018-2019 is $4.244M. Revenue forecasts are revisited in January of each fiscal year by the TBID Board of Directors to determine if adjustments need to be made. This will be the initial two-year budgeting cycle as well. 12-185 ACTIVITIES FOR FY2018-2019: The strategic initiatives detailed in the Newport Beach & Company FY2018-2020 Marketing Plan include pursuing high -impact business (longer stays and higher priced), continuing with enhancing exposure to targeted clientele through participation in appointment -based shows, and elevating the effectiveness of relationships with portfolio. A summarized breakdown of the TBID Board -approved strategic initiative marketing and advertising budget for FY2018-2019 is as follows: M."III"alf.1111*1101Y0F.1%9 Wx. Revenue $ 4,243,884 Operating Expenses $ 1,699,595 Advertising $ 325,000 Community Relations $ 165,000 Digital Marketing/Website $ 14,500 PR/Communications $ 80,000 NB&Co Fees and Research $ 73,789 International Marketing Initiatives $ 90,000 Trade Shows $ 375,000 Sales Group Enhancement Credit $ 300,000 Hosted Industry Events $ 46,964 Industry Partnerships/Sponsorships $ 248,964 Site Inspections $ 45,000 Client Events $ 75,000 Conference Services $ 1,000 Database/Prospecting $ 100,000 Special Promotions $ 80,000 Customized Destination Support $ 524,072 12-186 ASSESSMENT AND BOUNDARIES: The TBID Agreement was renewed in January 2014 extending the renewal period for ten (10) years. A newly -constructed full-service opened in April 2018 - Lido House - and is undergoing the process to be added to the TBID assessed businesses. ESTIMATE OF NON -ALLOCATED FUNDS CARRIED OVER FROM FY2017-2018: $0.00 AMOUNT OF ANY CONTRIBUTIONS OTHER THAN ASSESSMENTS LEVIED IN FY2017-2018: $0.00 12-187 Attachment E Visit Newport Beach Inc. Group Sales FY2019 Budget Visit Newport Revenue FY2018 $ 3,939,513 $ FY2019 4,243,884 Operating Expenses $ 1,704,650 $ 1,699,595 Advertising $ 120,000 $ 325,000 Community Relations $ 165,000 $ 165,000 Digital Marketing/Website $ 12,000 $ 14,500 PR/Communications $ - $ 80,000 NB&Co Fees and Research $ 80,586 $ 73,789 International Marketing Initiatives $ 55,000 $ 90,000 Trade Shows $ 430,000 $ 375,000 Sales Group Enhancement Credit $ 355,000 $ 300,000 Hosted Industry Events $ 45,000 $ 46,964 Industry Partnerships/Sponsorships $ 130,000 $ 248,964 Site Inspections $ 65,000 $ 45,000 Client Events $ 90,000 $ 75,000 Conference Services $ 1,000 $ 1,000 Database/Prospecting $ 85,000 $ 100,000 Special Promotions $ 60,000 $ 80,000 Customized Destination Support $ 415,727 $ 524,072 $ 3,813,963 $ 4,243,884 Variance YO $ 304,371 $ (5,055) $ 205,000 $ 2,500 $ 80,000 $ (6,797) $ 35,000 $ (55,000) $ (55,000) $ 1,964 $ 118,964 $ (20,000) $ (15,000) $ 15,000 $ 20,000 $ 108,345 $ 429,921 12-188 Visit Newport Beach Inc. Group Sales FY2020 Budget NewportFVisit : . Sales Proposed Budget FY2019 Proposed Budget FY2020 Revenue $ 4,243,884 $ 4,431,001 Operating Expenses $ 1,699,595 $ 1,710,088 Advertising $ 325,000 $ 275,000 Community Relations $ 165,000 $ 165,000 Digital Marketing/Website $ 14,500 $ 12,000 PR/Communications $ 80,000 $ 100,000 NB&Co Fees and Research $ 73,789 $ 97,000 International Marketing Initiatives $ 90,000 $ 55,000 Trade Shows $ 375,000 $ 425,000 Sales Group Enhancement Credit $ 300,000 $ 355,000 Hosted Industry Events $ 46,964 $ 45,000 Industry Partnerships/Sponsorships $ 248,964 $ 215,000 Site Inspections $ 45,000 $ 81,433 Client Events $ 75,000 $ 125,000 Conference Services $ 1,000 $ 1,000 Database/Prospecting $ 100,000 $ 85,000 Special Promotions $ 80,000 $ 100,000 Customized Destination Support $ 524,072 $ 584,480 $ 4,243,884 $ 4,431,001 Variance YoY $ 187,117 $ 10,493 $ (50,000) $ (2,500) $ 20,000 $ 23,211 $ (35,000) $ 50,000 $ 55,000 $ (1,964) $ (33,964) $ 36,433 $ 50,000 $ (15,000) $ 20,000 $ 60,408 $ 187,117 12-189