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Home My WebLink About13 - Newport Beach & Company, Visit Newport Beach and the Tourism BID Annual ReportingTO: FROM CITY OF NEWPORT BEACH City Council Staff Report July 23, 2019 Agenda Item No. 13 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL Grace K. Leung, City Manager - 949-644-3001, gleung@newportbeachca.gov PREPARED BY: Melanie Franceschini, Administrative Analyst mfranceschini((2)-newportbeachca.gov PHONE: 949-644-3028 TITLE: Newport Beach & Company Destination Business Plan Supplement, Visit Newport Beach Fiscal Year 2019-20 Budget Update and the Tourism Business Improvement District Fiscal Year 2019-20 Annual Report and Fiscal Year 2019-20 Budget Update 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 Business Plan Supplement and Fiscal Year (FY) 2019-20 Budget Update 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 FY 2019-20 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 Business Plan Supplement; d) Review, approve and/or modify VNB's FY 2019-20 Budget Update; e) Review, approve and/or modify the NBTBID'S FY 2019-20 Annual Report; and f) Review, approve and/or modify the NBTBID's FY 2019-20 Budget. 13-1 Newport Beach & Company Destination Business Plan Supplement, Visit Newport Beach FY 2019-20 Budget Update and the Tourism Business Improvement District FY 2019-20 Annual Report and FY 2019-20 Budget Update July 23, 2019 Page 2 FUNDING REQUIREMENTS: The current adopted budget includes sufficient funding for these services. 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 $5,479,965 in TOT funding in FY 2019-20 (Attachment B). This revenue estimate was prepared by Newport Beach and Co. and is less than 2% different from the City's estimate of $5,363,370 when the FY 2019-20 budget was prepared. Under the terms of the separate City-NBTBID agreement, the NBTBID assesses its member hotels 3% of gross short-term (less than 30 day stays) room rental revenue. The FY 2019-20 assessment revenue is projected to be approximately $4,583,550. The assessments levied for the NBTBID are applied toward the activities described in the NBTBID'S Management District Plan (approved by the City Council on January 28, 2014) and summarized in its annual report. The City collects the member assessments on behalf of the NBTBID and retains 0.25% 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 (Attachment C), Marketing Goals and Marketing Plan (Attachment A) from annual to biennial to correspond with the biennial reporting timeline. 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 Highway 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 on January 28, 2014 and amended by the City Council on July 10, 2018. The NBTBID's current, 10 -year term will expire on January 31, 2024. The NBTBID now includes nine hotels/resorts, each consisting of 100 hotel rooms or more, located within Newport Beach: 13-2 Newport Beach & Company Destination Business Plan Supplement, Visit Newport Beach FY 2019-20 Budget Update and the Tourism Business Improvement District FY 2019-20 Annual Report and FY 2019-20 Budget Update July 23, 2019 Page 3 Balboa Bay Resort Fashion Island Hotel Hyatt Regency John Wayne Airport Newport Beach Hyatt Regency Newport Beach Lido House Hotel Newport Beach Marriott Bayview Newport Beach Marriott Hotel & Spa Newport Dunes Waterfront Resort & Marina Renaissance Newport Beach Hotel VNB, on behalf of the NBTBID owners association, has prepared the NBTBID'S FY 2019- 20 Annual Report for the City Council's review and approval (Attachment D). The annual report includes a summary of the NBTBID's proposed activities for the year. The report does not contain recommendations to alter the BID boundaries or the method and basis for levying assessments for the following fiscal year. The NBTBID Board of Directors met on June 24 to review and approve of the TBID's FY 2019-20 budget (Attachment E). Waiver Request 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 set a May 31 due date for the NBTBID annual report; however, the NBTBID Board of Directors were not able to meet until June 24 to review and approve the 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. NOTICING: 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 Supplement Attachment B — VNB FY 2019-20 Budget Update Attachment C — VNB Performance Standards Report Attachment D — NBTBID FY 2019-20 Annual Report Attachment E — NBTBID FY 2019-20 Budget Update 13-3 ATTACHMENT A 2020 SUPPLEMENT BEYOND2020 NEWPORT BEACH & COMPANY DESTINATION BUSINESS PLAN AL w e�w ort A� EACH & COMPANY 1 IMPACT OF TOURISM IN NEWPORT BEACH IF YOU TOOK THE TOURISM INDUSTRY AWAY FROM NEWPORT BEACH... TO KEEP NEWPORT BEACH GOVERNMENT SERVICES AT THE SAME LEVELS, IT WOULD COST EACH NEWPORT BEACH HOUSEHOLD AN ADDITIONAL $1,139 IN TAXES PER YEAR. IF YOU TOOK THE TOURISM INDUSTRY AWAY FROM NEWPORT BEACH... TO KEEP THE NEWPORT BEACH ECONOMY CHURNING AT THE SAME LEVELS, IT WOULD COST EACH NEWPORT BEACH HOUSEHOLD AN ADDITIONAL $43,922 IN ADDITIONAL LOCAL SPENDING PER YEAR. r • 13-5 2020 SUPPLEMENT TABLE OF CONTENTS INTRODUCTION Executive Summary Newport Beach & Company Overview 2020 Goals 2020 Budgets 2020-2023 Strategic Plan AUDIENCE PLANS Audience Overview Leisure Traveler Meeting Planner Local Community Organization & Board of Directors GOVERNANCE Executive Committee & Board of Directors Newport Beach & Company/Visit Newport Beach, Inc. - _ - r• 02 03 04 05 06 07 08 10 12 14 16 17 NEWPORTBEACHANDCO.COM 1 13-6 EXECUTIVE SUMMARY Newport Beach & Company soon will finish a record-breaking fiscal -year, already a milestone year in our company's thirty-year history. As this anniversary year comes to a close, our destination -marketing organization helped to achieve record-setting tourism -occupancy tax collections, shattered the six -figure mark in meetings/ group room -night production, deployed a new artificially -intelligent digital concierge program, launched highly successful integrated marketing campaigns and flawlessly executed two star-studded, brand -defining events with Variety magazine and the Newport Beach Film Festival in London and at The Resort at Pelican Hill. As Newport Beach & Company enters the second year of our two-year business -planning cycle, we present this updated 2020 Destination Business Plan Supplement that encompasses our revised objectives, strategies, goals and budgets for the next fiscal year and BEYOND 2020. Throughout the unique audience -based planning approach, Newport Beach & Company challenged its team to develop initiatives to take the destination BEYOND 2020. This past year, our Board of Directors, Management Team and Staff all worked together to develop a new long-range strategic plan. In the following 2020 Destination Business Plan Supplement, we outline those new 2020-2023 Strategic Plan initiatives that have been added to our annual business plan. With our entrepreneurial spirit and industry-leading model, our 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 ignites global passion and drives economic vibrancy, success and results for Newport Beach, California. As we prepare for the next monumental fiscal year and decade, we stand poised to take Newport Beach BEYOND 2020! Journey Well, Gary C. Sherwin, APR, CDME President & CEO Newport Beach & Company Debbie Snavely Chairperson Newport Beach & Company 2 2020 DESTINATION BUSINESS PLAN 13-7 GROUP SALES Board Newport Beach of Directors Foundation 501(c) 6 1 501(c)3 Financial/ Community AdministrativePresident/CEO Leadership Team 1 11 Development r � Brand Marketing Team "d� 10 l ri VISITBEACH, DINE CELEBRATE VIDEO ENTERPRISE NEWPORT NEWPORT NEWPORT NEWPORT NEWPORT INC. BEACH BEACH BEACH BEACH LEISURE MARKETING 2020 GOALS VISIT NEWPORT BEACH LEISURE MARKETING TOPLINE GOALS 19 FY2020 Tourism Occupancy Tax Revenue N/A $35,000,000 Marketing Campaign Room Nights 63,000 64,500 Marketing Campaign Economic Impact $42,000,000 $42,500,000 DIGITAL MARKETING 5,950,000 6,000,000 VN B Web Visits 1,192,300 1,250,000 Referrals to Partner Websites 110,000 120,000 SOCIAL MEDIA N/A $3,700,000* Social Media Followers 175,000 215,000 ADVERTISING 158,200 190,958 Total Ad Impressions 167,000,000 180,000,000 Online Ad Clicks to Site 322,000 323,000 MEDIA RELATIONS 13,000 14,500 Media Placements 555 575 Key Consumer Media Placements 120 125 Key Trade Media Placements N/A 20 INTERNATIONAL Wholesalers Trained In -Market Agent Visits 225 30 350 40 Travel Trade Packages 5 8 NEWPORT BEACH & COMPANY CELEBRATE.•. DIGITAL MARKETING Web Visits N/A 100,000 ADVERTISING Total Ad Impressions 5,950,000 6,000,000 MEDIA RELATIONS Placements DINE NEWPORT BEACH CONSUMER DINING SPENDING 78 175 Estimated Consumer Spending N/A $3,700,000* DIGITAL MARKETING Web Visits 158,200 190,958 NBRW Online Resevations 5,000 5,500 SOCIAL MEDIA Social Followers 13,000 14,500 MEDIA RELATIONS Placements 77 VIDEO NEWPORT VIDEO &MULTIMEDIA MARKETING 33 45 New Video Episodes 20 75 Video Views 162,000 20,000** NOTES: * NBRW Estimated Consumer Spending is directly tied to the number of restaurants participating in OpenTable, so Consumer Spending can fluctuate year to year. **NBTV Social Media Channels returned to City of Newport Beach. VNB started new video social media channels in 2019. 4 2020 DESTINATION BUSINESS PLAN 13-9 2020 BUDGETS VISIT NEWPORT BEACH LEISURE MARKETING OF BUDGET ADVERTISING COMMUNITY RELATIONS COLLATERAL INTERNATIONAL MARKETING DIGITAL MARKETING PUBLIC RELATIONS VISIT NEWPORT BEACH LEISURE MARKETING BUDGET NEWPORT BEACH & COMPANY •.- BUDGET 0• BUDGET FY2020 Revenue $5,017,492 $5,479,965 Operating Expenses $184,668 $222,815 Advertising $845,000 $1,049,000 Community Relations $225,991 $351,000 Collateral $62,000 $41,000 International Marketing $745,000 $557,000 Digital Marketing $358,000 $422,000 Public Relations $267,287 $294,600 Fees and Contributions to Newport Beach & Company $2,329,546 $2,542,550 NEWPORT BEACH & COMPANY •.- Revenue $2,769,546 $2,868,050 Operating Expenses $2,562,046 $2,774,550 Community Relations $150,000 $75,000 Collateral $12,500 $13,500 Website $15,000 $5,000 PR/Communications $30,000 - NEWPORTBEAC HANDCO.COM S 13-10 2020-2023 STRATEGIC PLA N QPRODUCT DEVELOPMENT • Encourage development of more citywide meeting space • Support and encourage redevelopment of Discovery Cube's Fun Zone • Explore citywide integrated transportation systems • Increase new product knowledge and staff, partners, visitors, and clients • Create unique, authentic experiences INTERNATIONAL MARKETING • Create anew International Marketing Task Force to explore new directions • DOMESTIC LEISURE MARKETING • Expand national media relations • Explore annualized consumer marketing campaign • Reinvent the Visitor Concierge Experience • Develop citywide brand messaging across multiple platforms • Develop expanded Travel Trade Strategy 9 GROUP MARKETING AND SALES • Develop local knowledge networks for key strategic markets • Explore 2028 Olympic opportunities • Create a preferred partner program • Assist hotels with marketing plan development and template ADMINISTRATION • Secure short-term rental TOT agreements with third parties • Explore local corporate alliances A • Expand leadership development and training • Reinvent staff annual review and feedback systems Q Q�OOJGS DEVELOP 4f 6 2020 DESTINATION BUSINESS PLAN 13-11 LEISURE TRAVELER Visitors and potential 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 Meeting planners interested in hosting group meetings, a conference or event in Newport Beach's tourism business improvement district (TBI D) hotels. LOCAL COMMUNITY Members and leaders of the Newport Beach community including local residents, partners, City of Newport Beach, hotels, business improvement districts (BIDS), merchant associations, regional destination marketing organizations (DMOs), Orange County Visitors Association (OCVA), Orange County government leaders and influential community stakeholders. ." A ORGANIZATION & BOARD OF DIRECTORS Staff, executive team, executive committee and board of directors of Newport Beach & Company and Visit Newport Beach, Inc. .� ` ss �, �� moi_°�I,i� LEISURE TRAVELER CUSTOMER -BASED DESTINATION BUSINESS PLAN OBJECTIVE 1 MOVE THE NEEDLE! RESULTS FIRST! AN INCREASE IN LEISURE TRIPS THAT RESULT IN 64,500 ADDITIONAL LEISURE HOTEL -ROOM NIGHTS BOOKED AND $42 MILLION IN INCREMENTAL LEISURE TRAVEL (VISITOR) SPENDING TO NEWPORT BEACH. STRATEGY. I-AUNCH TARGET -D, INTEGRATED MARKETING CAMPAIGNS Develop fully integrated, targeted marketing campaigns to attract visitors to Newport Beach during slow periods (need periods) for tourism -related Newport Beach businesses (hotels, retail, attractions and restaurants) STRATEGY.-JNvERT DAY-TkINNtKs IN I U OVERNIGH I LtISUKt visITORS. Convert daytime visitors into overnight visitors in Newport Beach to increase incremental leisure -travel spending in the destination. STRATEGY. CONVERT EVENT ATTENDEES, Mtt PINGS ATTENutth AND LSU hiNt55 I KAvELERS INTO OVERNIGHT LEISURE TRAVELERS. Increase brand awareness, length of stay 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 stays by marketing Newport Beach's appeal as a leisure getaway destination with an abundance of activities and events. OBJECTIVE 2 SPARK GLOBAL PASSION FOR VISITING NEWPORT BEACH. GLOBAL FIRST! MAKE INTERNATIONAL VISITORS AND RELEVANT INFLUENCERS PASSIONATE ABOUT VISITING NEWPORT BEACH. STRATEGY. MAKE INTERNATIONAL INFLUENCERS PASSIONATE ABOUT NEWPORT BEACH FOR THEIR CLIENTS, READERS AND VIEWERS. Educate international travel influencers (media and travel trade) on the Newport Beach brand and drive incremental visitation from each target international market. OBJECTIVE 3 TAKE THE NEWPORT BEACH DESTINATION BRAND STORY BEYOND 2020! STORY FIRST! INCREASE DESTINATION AWARENESS FOR NEWPORT BEACH THROUGH BOLD, BRAND -BUILDING INITIATIVES ON A GLOBAL SCALE THAT TAKE THE BRAND BEYOND TRADITIONAL DESTINATION MARKETING INTO TRUE DESTINATION STORYTELLING. STRATEGY. 1SE DESTINATION STORYTELLING TO ENCOURAGE AWARENESS AND ENGAGEMENT Tell the destination brand story through all customer interactions with leisure travelers, intermediaries (travel trade, wholesalers and tour operators) and consumer media, trade media and influencers. W MM 2020 DESTINATION BUSINESS PLAN 13-13 OBJECTIVE 4 DEVELOP MEANINGFUL, PERSONALIZED CONNECTIONS. PEOPLE FIRSTY CREATE MORE PERSONALIZED, EMOTIONAL CONNECTIONS WITH ALL LEISURE CUSTOMERS, INFLUENCERS AND INTERMEDIARIES TO DRIVE BRAND AWARENESS, BRAND ADVOCACYAND VISITATION. STRATEGY: 'FR',n14AL17ATIC)N, CUSTOMIZFD MARKFTING_ CC)NTENT AND F-XPERIFNCES. Deliver heightened, more meaningful and highly personalized marketing messages, campaigns and content to the right customer with the right message at the right time through a mobile -and -digital- first strategy utilizing enhanced customer profiling, analytics and big -data solutions. STRATEGY. CREATt 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 digitally to improve the visitor experience, which in turn results in repeat visitation, longer length of stay and word-of-mouth endorsements for Newport Beach. MEETING PLANNER CUSTOMER -BASED DESTINATION BUSINESS PLAN OBJECTIVE 1 MOVE THE NEEDLE! RESULTS FIRST! GENERATE $60 MILLION OR MORE IN GROUP/MEETINGS-RELATED ECONOMIC IMPACT TO NEWPORT BEACH. STRATEGY. IND AND QUALIFY NEW ACCOUNTS TO ADD TO ACTIVE DATABASE OF PRODUCING ACCOUNTS, GAINING MORE TRACTION IN GEOGRAPHIC AND VERTICAL MARKETS. STRATEGY. INVEST IN SELECT TRADESHOWS THAT DRAW THE PLANNER AUDIENCE WE SEEK FOR NEWPORT BEACH'S OF TBID HOTEL PARTNERS. STRATEGY. HOST CLIENT EVENTS IN SELECT DESTINATIONS TO ENGAGE CLIENTS WITH VISIT NEWPORT BEACH AND WIN THEM OVER FOR RFP SOURCING. 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. STRATEGY. PURSUE HIGH -IMPACT BUSINESS. Pursue high -impact meetings business to deliver higher -priced, longer length -of -stay group meetings prospects to TBID hotel partners. OBJECTIVE 2 BE GLOBAL. GO GLOBAL. GLOBAL FIRST! GROW BUSINESS AND MEETINGS BOOKINGS FROM CANADA. STRATEGY. EXPLORE THE MEETINGS MARKET IN CANADA. "O CANADA!" Target Canadian -based meeting planners and groups with marketing, direct sales and event promotions to drive incremental, international meetings bookings in Newport Beach. 13-15 OBJECTIVE 3 DESTINATION ANf VISIT NEWPORT BEACH STORYTELLING. STORY FIRST' TELL THE DESTINATION BRAND STORY AND THE VALUE PROPOSITION OF WORKING WITH VISIT NEWPORT BEACH. STRATEGY. USE DESTINATION AND VISIT NEWPORT BEACH STORYTELLING TO BUILD DESTINATION/SALES 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. OBJECTIVE 4 PERSONALIZATION TO MEETING PLANNERS. PLANNERS FIRST! DELIVER HEIGHTENED, MORE MEANINGFUL AND HIGHLY PERSONALIZED SALES AND MARKETING CONNECTIONS AND COMMUNICATIONS TO MEETING PLANNERS. STRATEGY: DELIVER TARGETED COMMUNICATION TO QUALIFIED MEETING PLANNERS THROUGH ALL SALES FUNNEL STAGES. Establish fully integrated, targeted -marketing communications to support tradeshow and event opportunities, sales incentives and key -market opportunities. STRATEGY: AAXIMIZE PAID INDUSTRY PARTNERSHIPS. Maximize ROI of paid partnership programs with third -party organizations as well as other industry alliances, such as HelmsBriscoe, Conference Direct, Cvent and other entities. LOCAL COMMUNITY CUSTOMER -BASED DESTINATION BUSINESS PLAN OBJECTIVE 1 TOURISM, MEETINGS AND PARTNERS FIRST! ELEVATE THE VALUE OF NEWPORT BEACH & COMPANY, ITS PARTNERS AND TOURISM TO THE LOCAL COMMUNITY. STRATEGY. 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. STRATEGY. DEVELOP A COMMUNITY PARTNERSHIP STRATEGY WITH INFLUENTIAL COMMUNITY MEMBERS, LEADERS AND MEDIA TO DRIVE AWARENESS FOR THE IMPORTANCE OF TOURISM, MEETINGS AND NEWPORT BEACH & COMPANY. STRATEGY. CREATE, PLAN AND CONDUCT A HIGH -IMPACT 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. 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. STRATEGY. IDENTIFY COMMUNITY ISSUES THAT MAY IMPACT TOURISM. OBJECTIVE 2 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 -UNIT STRUCTURE ENCOMPASSING COMMUNITY -WIDE MARKETING, BRANDING, PUBLIC RELATIONS, DIGITAL MARKETING, SOCIAL MEDIA AND SPONSORSHIPACQUISITION THROUGH ONE SINGLE, INNOVATIVE COMPANY WITH SIX DISTINCT BUSINESS UNITS. STRATEGY: VIDEO NEWPORT BEACH Tell the destination brand story thorough high-quality online and broadcast video content that features local programming that highlights the aspirational lifestyle story of the Newport Beach brand in and around the destination. STRATEGY. ENTERPRISE NEWPORT BEACH Drive economic development and business prosperity for Newport Beach neighborhood businesses and merchants. STRATEGY. CELEBRATE NEWPORT BEACH Elevate the pro file, awareness and quality as well as market and promote all brand -defining events in Newport Beach. 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. 13-17 STRATEGY: VISIT NEWPORT BEACH, INC. (LEISURE MARKETING) Build international brand awareness and drive incremental visitation, trips and visitor spending in Newport Beach. 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 (TBID) hotel partners' revenue. OBJECTIVE 3 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. STRATEGY: KEEP YOUR MEETING LOCAL/LOCAL HERO CAMPAIGN. OBJECTIVE 4 SERVICE MATTERS. HOSPITALITY FIRST! INCREASE CUSTOMER -SERVICE QUALITY, SERVICE STANDARDS AND DESTINATION PRODUCT KNOWLEDGE FOR NEWPORT BEACH FRONTLINE TOURISM EMPLOYEES AND FOR PREFERRED PARTNERS. STRATEGY: CONTINUE TO ROLL-OUT AND EXPAND A ROBUST HOSPITALITY -TRAINING PROGRAM FOR FRONTLINE EMPLOYEES RESULTING IN COMMUNITY AMBASSADORS FOR NEWPORT BEACH. 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 1]1 AAI AI rnC AAI r% A11 d`1 IrAITC ORGANIZATION & BOARD OF DIRECTORS CUSTOMER -BASED DESTINATION BUSINESS PLAN OBJECTIVE 1 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 100 -PERCENT PARTICIPATION AT BOARD MEETINGS, ANNUAL MARKETING OUTLOOK DINNER AND OTHER COMPANY FUNCTIONS. STRATEGY: DEVELOP A COMMUNICATIONS -AND -OUTREACH STRATEGY TO BOARD MEMBERS OF ALL THREE OF OUR COMPANIES/ORGANIZATIONS IN AN EFFORT TO INCREASE BOARD ENGAGEMENT, ATTENDANCE AND COMMITMENT TO EACH ORGANIZATION. OBJECTIVE 2 EDUCATE AND INFORM VOLUNTEER LEADERSHIP FIRST! ENSURE THAT BOARD OF DIRECTORS AND EXECUTIVE COMMITTEE ARE KEPT ABREAST OF RELEVANT ISSUES THAT INFLUENCE QUALITY DECISION MAKING AND DIRECTIONAL FOCUS OF THE ORGANIZATION BY INVITING KEY THOUGHT LEADERS AND SPEAKERS TO MEETINGS. ADDITIONALLY, ENSURE THAT THE EXECUTIVE COMMITTEE CAN EXPERIENCE COMPETITIVE SET DESTINATIONS AND INTERACT WITH OTHER DESTINATION MARKETING LEADERS SO THEY HAVE A WELL-ROUNDED BASE OF KNOWLEDGE TO EFFECTIVELY GOVERN THE ORGANIZATION. STRATEGY: DEVELOP A ROBUST CALENDAR OF ROTATING GUEST SPEAKERS (THOUGHT LEADERS AND QUALITY SPEAKERS) TO SPEAK AT BOARD MEETINGS AND COMPANY EVENTS TO ENSURE THE BOARD OF DIRECTORS ARE KEPT ABREAST OF NEW AND RELEVANT INDUSTRY ISSUES. STRATEGY: ENSURE THE EXECUTIVE COMMITTEE IS EXPOSED TO COMPETING DESTINATIONS INCLUDING THEIR TOURISM/MEETINGS PRODUCT, MARKETING AND SALES STRATEGIES AND APPROACHES. OBJECTIVE 3 IMPROVE COMPANY EFFICIENCY AND PERFORMANCE. PERFORMANCE FIRST! INCREASE EFFICIENCY, FUNCTIONALITY AND PERFORMANCE OF BUSINESS -PROCESSES WORKFLOW TO ELIMINATE CHANCE FOR ERRORS, REDUNDANCIES AND INEFFICIENCIES. STRATEGY: EXAMINE AND POSSIBLY REINVENT ALL BUSINESS PROCESSES, WORKFLOW AND PROJECT MANAGEMENT THROUGHOUT THE COMPANY. OBJECTIVE 4 BECOME THE PREFERRED REGIONAL DMO EMPLOYER. EMPLOYEES FIRST! INCREASE EMPLOYEE PERFORMANCE, MORALE AND RETENTION AND OTHER MEASURES OF EMPLOYEE SATISFACTION. STRATEGY: CENTRALIZE SEVERAL EMPLOYEE BENEFITS, OFFER LETTERS AND EMPLOYEE -FACING INFORMATION INTO FORMALIZED PROCESS WITH CLEAR ACCOUNTABILITY. STRATEGY: CONTINUE EMPLOYEE -ENGAGEMENT BENEFITS, EDUCATIONAL OPPORTUNITIES AND EMPLOYEE EVENTS AND RETREATS TO INCREASE EMPLOYEE MORALE, PRODUCTIVITY AND RETENTION. STRATEGY: GENERATE POSITIVE, LOCAL, REGIONALAND NATIONALTRADE MEDIA PLACEMENTS AND EARNED MEDIA COVERAGE ABOUTTHE TWO COMPANIES (NEWPORT BEACH & COMPANYAND VISIT NEWPORT BEACH, INC.)AS WELLAS ITS INNOVATIVE STRUCTURE, PROGRAMMING AND RESULTS TO LOCAL, REGIONALAND NATIONAL B2B/TRADE MEDIA. �r Y, off /� fI EXECUTIVE COMMITTEE CHAIRPERSON VICE CHAIRPERSON TREASURER SECRETARY Debbie Snavely Homer Bludau Candace Bisconte Linda M. Beimfohr Newport Beach 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 BOARD OF DIRECTORS JOE ADAMS Discovery Cube/Ocean Quest DAVID BEEK Island Marine Fuel ADAM BEER Lido House LINDA M. BEIMFOHR Hornblower Cruises & Events CANDACE BISCONTE ACCESS Destination Services HOMER BLUDAU Former City Manager CHARLES CHO Newport Beach Marriott Bayview STEVE CHOE Renaissance Hotel Newport Beach TOM CLEARWATER Hyatt Regency John Wayne Airport Newport Beach TOM DONOVAN The Resort at Pelican Hill SAM EL-RABAA Balboa Bay Resort MICHAEL GELFAND Newport Dunes Waterfront Resort & Marina RUSH HILL NRM Real Estate Advisers RUSS KLINE American Express DENNIS KUHL Angels Baseball CHIEFJON LEWIS DEBBIE SNAVELY Newport Beach Newport Beach Marriott Police Department Hotel & Spa DAN MATUSIEWICZ JOE STAPLETON City of Newport Beach Spinnaker Investment Group SID RAMANI TANYATHOMAS Hyatt Regency Newport Beach Fashion Island STEVE ROSANSKY GERARD WIDDER Newport Beach Chamber Fashion Island Hotel of Commerce DOUG WOOD RON SCHWARTZ ; City of Newport Beach Muldoon's Irish Pub Appointee GREGG SCHWENK Newport Beach Film Festival iA- 16 2020 DESTINATION BUSINESS PLAN 13-21 NEWPORT BEACH & COMPANY EXECUTIVE TEAM Gary C. Sherwin, Michelle Donahue, Doug McClain, Lily Pearson CDME CDME CDME PRESIDENT &CEO SENIOR VICE PRESIDENT SENIOR VICE PRESIDENT VICE PRESIDENT OF OF GROUP SALES &CHIEFMARKETING FINANCE OFFICER ADMINISTRATION Vanessa Garcia DIRECTOR OF ADMINISTRATION/ ASSISTANT TO THE CEO MARKETING SARAH KRUER Vice President of Marketing & Communications KATY DEN NIS Senior Director of Integrated Marketing ERIN ROSE Senior Director of Media Relations JACKIE INFANTE Creative Director BRIANNA GRIMALDI Senior Manager of Digital Marketing & New Media MELISSAJACOBI Senior Manager of Multimedia Marketing & Partnerships JULIANA GILES Integrated Marketing Manager VERONICA FLORES Communications Coordinator GEORGE HARDMAN COLLEEN COSTELLO Video & Multimedia Producer Director of Tourism Marketing & Insights KAYCEE ROBISON KIMTHOMPSON Administrative Assistant Director of Special Events MARIA LUCAS 4 Director of Communications Dina Alleluia -Carr FINANCE COORDINATOR VISIT NEWPORT BEACH,INC GROUP SALES AMANDA KLIEM Director of Sales MICHELLE DEVINE National Account Director KIMBERLY DUNNEGAN National Account Director LORI HOY National Account Director ENRIQUE PAULO National Account Director JANE LOENHORST Group Marketing & Communications Director JENNIFER BRANNON Destination Services Manager ERIN STAPLEY Sales & Research Coordinator 13-22 FASHION ISLAND VISITOR CENTER HEATHER SECKINGER Lead Visitor Concierge KAREN FLEMING Visitor Concierge LEON RODGERS Visitor Concierge NEWPORT BEACH TV ED OLEN Video & Multimedia Producer DOMINIC DIMARE Newport Beach TV Production LUIS HERRERA Newport Beach TV Videographer & Editor i 13-23 ew Ort ` �EwvoRT _::.•::.:.:r'F m 3: VISIT ew ort EACH OY..YSumnier / EACH & COMPANY - iO" 0 CALIFORNIA 1 NEWPORT BEACH & COMPANY 1600 NEWPORT CENTER•DRIVE STE.120 NEWPORT BEACH, CA 92660 VISITNEWPORTBEACH.COM•NEWPORTBEACHANDCO.COM•949.719.6100 800.94.COAST ATTACHMENT B 1511 4WA ort Visit Newport Beach, Inc. Leisure Marketing (TOT) C H FY2020 Budget FY2019 13-25 BUDGET Variance Operating Revenue Revenue 41000 - TOT/TBID Income 5,014,493 5,476,965 462,472 44000 - Event Hosting Income 3,000 3,000 0 Total Revenue 5,017,493 5,479,965 462,472 Interest Income 0 - - Total Operating Revenue 5,017,493 5,479,965 462,472 Expenses Salary and Wages 61010 - Salaries and Wages 77,480 80,730 3,250 61030 - Payroll Tax Expenses 6,113 6,370 257 Total Salary and Wages 83,593 87,100 3,507 Benefits 61140 - Retirement Plan (401k) 5,424 6,458 1,034 61150 - Flexible Spending Plan 0 0 0 Total Benefits 5,424 6,458 1,034 General and Administrative Expenses Operating Expenses Operating Expenses 64100 - Office Supplies 0 300 300 64101 - Stationary 0 2,025 2,025 64115 - Office Equipment (non-deprec) 0 2000 2000 64120 - Equipment Repairs & Maintenance 0 500 500 64125 - Computer Software (non-deprec) 5,913 9,400 3,487 64130 - Voice and Data - Office 1,140 1,220 80 64145 - Shipping Charges 0 450 450 64150 - Bank Fees 540 600 60 64160 - Membership Dues 62,150 66,600 4,450 64170 - Team Meetings 0 4,369 4,369 64175 - Governance Meeting Expenses 0 6,750 6,750 64190 - Business Licensing and Fees 0 0 0 64300 - Depreciation Expense 209 7,500 7,291 64600 - Business Meals/Entertainment 0 0 0 64610 - Client Gifts 0 1,500 1,500 Total Operating Expenses 69,952 103,214 33,262 Insurance 63100 - General Liability Insurance 0 1,200 1,200 63300 - Board of Directors Insurance 7,900 7,500 (400) Total Insurance 7,900 8,700 800 Professional Fees 64205 - Payroll Processing Service 0 2,600 2,600 64207 - Bloggers 7,800 7,800 0 64201 -Audit Fees 7,500 8,500 1,000 64202 - Tax Preparation Fees 2,500 2,500 0 Total Professional Fees 17,800 21,400 3,600 Travel Expenses 65400 - Transportation Costs 0 - - 65405 - Mileage ($0.535/mile 2017) 0 - Total Travel Expenses 0 - - Total General and Administrative 95,652 133,314 37,662 13-25 51 4WA ort CH Visit Newport Beach, Inc. Leisure Marketing (TOT) FY2020 Budget Advertising Expenses 66101 - Advertising - Purchased 66102 - Advertising - Local Events 66103 - Advertising Promotions - Media 66104 Advertising Tracking Media 66202 - Ad Production 66203 - Creative Design/Development 66205 - Photography/Video Production Total Advertising Expenses Marketing Expenses Community Relations 67103 - Community Partner Events 66212 - Community Sponsorships 67101 - Research 67102 - Christmas Boat Parade 67105 - Awards 67107 - Promotional Items 67108 - Company -Sponsored Events 67109 - Hospitality Training Total Community Relations Marketing Collateral 67301 - Inspiration Guide 67302 - Maps 67303 - Special Interest Collateral 67311 - Collateral Production Expenses 67312 - Collateral Distribution 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 FY2019 BUDGET 600,000 40,000 0 0 50,000 100,000 20,000 810,000 5,000 35,000 125,000 95,000 0 0 0 991 260,991 10,000 0 10,000 0 42,000 62,000 125,000 80,000 30,000 0 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 2,000 768,000 45,000 0 66,000 50,000 100,000 20,000 1,049,000 7,500 168,500 60,000 110,000 300 4,000 500 200 351,000 5,000 0 0 0 36,000 41,000 118,646 110,000 13,000 0 109,000 0 100,000 9,000 459,646 30,000 70,000 155,000 30,000 9,600 294,600 1,146,246 212,000 22,000 30,000 45,000 20,000 12,000 4,000 Variance 168,000 5,000 0 66,000 0 0 0 Lsy,000 2,500 133,500 (65,000) 15,000 300 4,000 500 (791) 90,009 (5,000) 0 (10,000) 0 (6,000) (21,000) (6,354) 30,000 (17,000) 0 59,000 (15,000) 50,000 1,000 101,646 0 (27,687) 55,000 0 0 27,313 197,968 67,000 0 (195,000) (280,000) 9,500 4,000 2,000 13-26 VISIT eW UY'i 4:;6; EACH Visit Newport Beach, Inc. Leisure Marketing (TOT) FY2020 Budget FY2019 BUDGET BUDGET 67408 - International Transportation Costs 67409 - International Other Travel Costs 67410 - International Business Meals/ Entertainment 67412 - International Brand Events 67413 - International Sales Missions Total International Marketing Initiatives NB&Company Fees 68001 - NB&Co Fees Total NB&Company Fees Total Expenses Net Income 5,000 4,000 500 1,000 2,000 2,000 0 193,000 0 12,000 745,000 557,000 2,329,546 2,329,546 5,017,493 0 2,500,847 2,500,847 5,479,965 0 (1,000) 500 0 193,000 12,000 (188,000) 462,472 0 13-27 ATTACHMENT C NEWPORTVISIT , • 2019 LEISURE MARKETING PERFORMANCE STANDARDS REPORT It July 1, 2018 through June 1 2019 • OF GOAL ACTUAL ACHIEVED WEBSITE VN B Web Visits 1,192,300 1,433,101 120% SOCIAL MEDIA Social Media Followers 175,000 205,209 117% ADVERTISTI NG Total Ad Impressions 167,000,000 182,502,226 109% Marketing Room Nights Generated* 63,000 37,000 59% PUBLIC RELATIONS Media Placements 555 570 103% Average Barcelona Score 60 74 123% Key Media Placements (High -Profile Media Stories) 120 127 106% INTERNATIONAL MARKETING International Wholesalers/Travel Agents Trained 225 690 307% *Note: Does not include 2019 Spring Leisure Ad Campaign Results. 2019 Spring Ad Effectiveness Study Report due 8/15/19 with final room nights results. 13-28 ATTACHMENT D NEWPORT BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT FOR FISCAL YEAR 2019-20 JULY 1ST 2019 THROUGH JUNE 30TH 2020 ORIGINATION: Implemented beginning May 15Y, 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 FY 2019-20 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 nine TBID lodging businesses. These services are designed to benefit the nine 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 0 Lido House Hotel COST BASIS AND REVENUE FOR FY 2019-20: 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 FY 2019-20 is $4.512 M. Revenue forecasts are revisited in January of each fiscal year by the TBID Board of Directors to determine if adjustments need to be made. 13-29 ACTIVITIES FOR FY 2019-20: 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 accounts. A summarized breakdown of the TBID Board -approved strategic initiative marketing and advertising budget for FY 2019 -20 is as follows: GROUP SALES INITIATIVES Revenue $ 4,512,000 Operating Expenses $ 1,936,700 Advertising $ 400,000 Community Relations $ 85,000 Digital Marketing/Website $ 64,000 PR/Communications $ 35,000 NB&Co Fees and Research $ 155,000 International Marketing Initiatives $ 52,000 Trade Shows $ 405,000 Sales Group Enhancement Credit $ 365,000 Hosted Industry Events $ 30,000 Industry Partnerships/Sponsorships $ 135,000 Site Inspections $ 50,000 Client Events $ 75,000 Conference Services $ 1,000 Database/Prospecting $ 100,000 Special Promotions $ 90,000 Customized Destination Support $ 525,000 13-30 ASSESSMENT AND BOUNDARIES: The TBID Agreement was renewed in January 2014 extending the renewal period for ten (10) years. ESTIMATE OF NON -ALLOCATED FUNDS CARRIED OVER FROM FY 2018-19: $0.00 AMOUNT OF ANY CONTRIBUTIONS OTHER THAN ASSESSMENTS LEVIED IN FY 2019-20: $0.00 FY 2018-19 RESULTS: 0 Group Room Night Goal: 96,000 0 Estimated Actual Room Nights Booked: 110,000 0 Estimated Annual Hotel Room Revenue: $28,000,000 0 Estimated Overall Economic Impact: $77,000,000 0 TBID Return On Investment: 660% 13-31 ATTACHMENT E VISIT a ort Visit Newport Beach, Inc. Group Sales (TBID) FY2O2O Proposed Budget lis C H 13-32 19 Budget FY2019 PROPOSED to'20 BUDGET BUDGET Budget Operating Revenue Revenue TOT/TBID Income 4,243,884 4,583,550 339,666 Total Revenue 4,243,884 4,583,550 339,666 Other Income - Interest Income - 2,000 2,000 Total Operating Revenue 4,243,884 4,585,550 341,666 Expenses Salary and Wages Salaries and Wages 903,340 1,046,030 142,690 Bonuses and Commissions 201,325 251,253 49,928 Auto Allowance 18,540 19,140 600 Payroll Tax Expenses 86,292 101,269 14,977 Total Salary and Wages 1,209,497 1,417,692 208,195 Benefits Medical Insurance 79,722 106,041 26,319 Benefit Administrative Fees - 225 225 Dental Insurance 7,169 6,873 (296) Vision Insurance 1,220 1,337 117 Life and Disability 7,446 15,439 7,993 Retirement Plan (401k) 78,624 104,455 25,831 Flexible Spending Plan 500 500 - Employee Engagement Benefit 8,686 10,813 2,127 Total Benefits 183,367 245,682 62,315 General and Administrative Expenses Operating Expenses Office Supplies 6,000 9,000 3,000 Kitchen Supplies - 3,000 3,000 Office Equipment Leases 6,600 3,000 (3,600) Office Equipment (non-deprec) 6,500 6,500 - Equipment Repairs & Maintenance 6,600 15,192 8,592 Computer Software (non-deprec) 8,075 9,574 1,499 Voice and Data - Office 4,800 5,064 264 Telephone - Mobile 9,570 9,600 30 Postage - - - Shipping Charges 1,500 3,000 1,500 Bank Fees - 100 100 13-32 VISIT ' V ort C H Membership Dues Subscriptions Team Meetings Governance Education Depreciation Expense Business Meals/Entertainment Total Operating Expenses Office Lease and Expenses Office Lease Office Repairs and Maintenance Total Office Lease and Expenses Insurance General Liability Insurance Workers Compensation Insurance Board of Directors Insurance Total Insurance Professional Fees Recruiting Fees Payroll Processing Fees Independent Contractors NB&Co Marketing Fees Consultant Fees Audit Fees Tax Preparation Fees Legal Fees Total Professional Fees Travel Expenses Airfare Accommodations Meals Transportation Costs Other Travel Costs Total Travel Expenses Total General and Administrative Visit Newport Beach, Inc. Group Sales (TBID) FY2O2O Proposed Budget FY2019 BUDGET 35,000 10,000 20,000 18,480 9,000 142,125 107,370 600 107,970 5,496 6,500 10,440 2 2,43 6 72,000 7,500 1,000 53,000 500 30,000 13,500 30,000 20,000 10,000 221,030 112,199 3,612 115,811 3,200 10,000 9,000 22,200 4,065 30,000 108,000 10,500 2,500 19 Budget to'20 Budget 18,000 500 20,000 13,500 10,000 1,520 1,000 78,905 4,829 3,012 7,841 (2,296) 3,500 (1,440) (236) 4,065 30,000 36,000 3,000 1,500 80,500 155,065 74,565 9,000 6,000 10,000 10,000 1,650 1,200 4,500 3,000 550 250 25,700 20,450 378,731 534,556 (3,000) (450) (1,500) (300) (5,250) 155,825 13-33 VISIT' a ort �C H Advertising Expenses Advertising - Purchased Promotional Gift Cards Promotional Client Gifts Ad Production Creative Design/Development Community Sponsorships Total Advertising Expenses Marketing Expenses Community Relations Annual Marketing Outlook Research Community Partner Events Company -Sponsored Events Total Community Relations Marketing Collateral Collateral Production Expenses Total Marketing Collateral Digital Marketing Website Redesign Expenses CRM Maintenance Total Digital Marketing Communications/Public Relations Media Special Programs Total Communications/Public Relations Total Marketing Expenses International Marketing Initiatives International Brand Awareness Fees International Trade Shows International Promotional Items International Sales Missions Total International Marketing Initiatives Direct Sales Initiatives Trade Show Expense Trade Show Travel Expenses Trade Show Registration Visit Newport Beach, Inc. Group Sales (TBID) FY2020 Proposed Budget FY2019 nrrr%j-r•.m 100,000 40,000 40,000 225,000 165,000 570,000 1,789 150,000 40,000 40,000 150,000 7,500 387,500 75,000 2,000 8,750 19 Budget to'2O Budget 50,000 (75, 000) (157,500) (182,500) 75,000 211 8,750 1,789 85,750 83,961 2,500 12,000 14,500 80,000 80,000 96,289 35,000.00 0.00 0.00 55,000.00 90,000 60,000 225,000 25,220 38,000 63.220 15,000 15,000 163.970 52,000 52,000 70,000 180,000 22, 720 26,000 48,720 (65, 000) (65,000) 67,681 (35, 000) (3,000) (38,000) 10,000 (45, 000) 13-34 V[SIT ort . CH Trade Show Booth Expenses Total Trade Show Expense Sponsorships Sales Group Enhancement Credit Hosted Industry Events Industry Partnerships Industry Sponsorships Total Sponsorships Sales Initiatives Site Inspections Client Events Conference Services Database/Prospecting Total Sales Initiatives Total Direct Sales Initiatives Customized Destination Support Hotel Partner Booking Incentives Partner Engagement Expenses Group Marketing Initiatives Total Customized Destination Support Total Expenses Net Income Visit Newport Beach, Inc. Group Sales (TBID) FY2020 Proposed Budget FY2019 Rilnf,F.T 90,000 125,000 375,000 375,000 300,000 46,964 83,964 165,000 595,928 45,000 75,000 1,000 100,000 221,000 1,191,928 340,000 12,072 172,000 524,072 390,000 30,000 100,000 45,000 565,000 50,000 85,000 1,000 100,000 236,000 1,176,000 340,000 12,000 185,000 537,000 19 Budget to'20 Budget 35,000 90,000 (16, 964) 16,036 (120, 000) (30, 928) 5,000 10,000 15,000 (15,928) (72) 13,000 12,928 4,243,884 4,514,400 270,516 71,150 71,150 13-35