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HomeMy WebLinkAbout22 - Visit Newport Beach, Inc. FY 2026 Destination Business Plan Budget, Leisure Marketing (TOT) FY 2026 Budget, and Performance Standards ReportQ �EwPpRT CITY OF s NEWPORT BEACH `q44:09 City Council Staff Report June 24, 2025 Agenda Item No. 22 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Tara Finnigan, Assistant City Manager - 949-644-3001, tinnigan@newportbeachca.gov PREPARED BY: Lorig Yaghsezian, Management Analyst — 949-644-3028, lorigyaghsezian@gmail.com TITLE: Visit Newport Beach, Inc. FY 2026 Destination Business Plan Budget, Leisure Marketing (TOT) FY 2026 Budget, and Performance Standards Report ABSTRACT: Visit Newport Beach, Inc. (VNB), a business unit of Newport Beach & Company, provides destination marketing services to the City of Newport Beach 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, approval, denial or modification. VNB has submitted its Fiscal Year 2026 Destination Business Plan, Performance Standards Report, and Leisure Marketing (TOT) FY 2026 Budget for the City Council's review and approval. RECOMMENDATIONS: 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) Waive the requirement in the agreement for a Biennial Performance Standards Report, Biennial Marketing Plan and Biennial Budget and accept the Fiscal Year 2026 report, plan and budget as submitted; c) Review and approve and/or modify the FY 2026 Newport Beach & Company Destination Business Plan and Performance Standards Report; and d) Review and approve the Visit Newport, Inc. Leisure Marketing (TOT) FY 2026 Budget. 22-1 Visit Newport Beach, Inc. FY 2026 Destination Business Plan Budget, Leisure Marketing (TOT) FY 2026 Budget, and Performance Standards Report June 24, 2025 Page 2 DISCUSSION: VNB, a nonprofit organization under IRS Code § 501(c)(6), serves as the destination marketing organization for the City of Newport Beach. Under the new agreement with the City, which became effective January 1, 2025, VNB agreed to restructure its organization by consolidating Visit Newport Beach, Inc. and Newport Beach & Company into one company and changing the composition of its voting Board of Directors to a seven -member committee that includes two City representatives — the city manager and the finance director. The changes were completed by June 30, 2025, meeting the timeline specified in the agreement. Given the significant organizational and governance changes VNB is undergoing, staff recommends that the Council waive the requirement that calls for VNB to submit biennial reports and a biennial budget during this transitional period and review the one-year plans as provided. VNB submitted its Fiscal Year 2026 Destination Business Plan (a supplement to the Fiscal Year 2025 report approved by the Council on July 23, 2024), Performance Standards Report, and Leisure Marketing (TOT) FY 2026 Budget for the City Council's review and approval. The VNB Board of Directors approved the FY 2026 Destination Business Plan and Budget (Attachments A and B) on May 29, 2025. FISCAL IMPACT: Under the new agreement, VNB will receive 23% of the City's annual commercial TOT revenue. For FY 2026, VNB estimates this amount to be approximately $7.3 million, based on projected TOT receipts from commercial hotel operators. 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 — Visit Newport Beach, Inc. FY 2026 Destination Business Plan Attachment B — Visit Newport Beach, Inc. Leisure Marketing (TOT) FY 2026 Budget Attachment C — Visit Newport beach, Inc. Performance Standards Report 22-2 VISIT NEWPORT BEACH DESTINATION BUSINESS PLAN FISCAL YEAR 2026 SUPPLEMENT I N T R O D U C T I O N 0 02 LETTER FROM THE CEO 03 VISIT NEWPORT BEACH ORGANIZATIONAL CHART IMPACT of TOURISM 05 FY 2026 BUDGETS 06 TOURISM OCCUPANCY (TOT) GOALS N NEWPORT BEACH 07 BUSINESS UNIT GOALS 08 LOCAL & GLOBAL MARKET INSIGHTS IF YOU TOOK THE TOURISM INDUSTRY AWAY FROM NEWPORT BEACH... AUDI ENCE OVERVI E W TO KEEP NEWPORT BEACH GOVERNMENT SERVICES FLOWING AT THE SAME LEVELS: IT WOULD COST EVERY NEWPORT BEACH HOUSEHOLD AN ADDITIONAL 12 LEISURE TRAVELER BUSINESS PLAN $1,139 IN TAXES PER YEAR. 16 LOCAL COMMUNITY BUSINESS PLAN 18 CORPORATE BUSINESS PLAN TO KEEP THE NEWPORT BEACH ECONOMY CHURNING AT THE SAME LEVELS: IT WOULD COST EVERY NEWPORT BEACH HOUSEHOLD AN ADDITIONAL 20 FY 2026 BRAND CALENDAR $43,922 IN ADDITIONAL LOCAL SPENDING PER YEAR. 22 EXECUTIVE COMMITTEE 23 BOARD OF DIRECTORS 23 MARKETING COMMITTEE MEET THE TEAM 24 EXECUTIVE TEAM & ADMINISTRATION 25 MARKETING TEAM - - - _ - _ �- �S_� . - � _f � � - -.- .. _ _ - - - _ � ...,..tip- _ . - - '- �.- ' -_ •- -'+r ;" - _- - - . .-_ - --_ D - c - ...�.. .. - Y'��G`�rl -ram•_- •r�:.•:�'`'�-r.�.+�..E - - "Rw,` _ - {y7.::-�.,.�. �,�,;�- -• •o— — �'�' - _ � y� .- _,r - . . � � .�.._ �~`• �� . _ ��'fipW ., i�,.� �� ^t, r �r`�. - . 5i� `~-- �� _'�si�er,�'�"f� — i - �--- - 'FAIN 7- Nt i WNL LO N 0 N LL O U) 0 z_ 0 a w 2 w 2 C7 z 0 Q z 0 w Dear Stakeholders, Partners, and Friends, As we enter FY 2026, the travel landscape is defined by momentum and disruption. While demand remains strong across many sectors, a convergence of economic uncertainty, geopolitical tension, currency shifts, climate -related events, and election year dynamics has reshaped traveler sentiment and decision -making. Closer to home, Southern California continues to navigate the aftermath of natural disasters, while global relations and trade friction have added new complexities to international visitation. These challenges require more than strong marketing. They call for clarity, agility, and a commitment to showing up with empathy and precision. For Visit Newport Beach, this is not about simply weathering change - it is about leading through it with intention and excellence. Our mission remains unchanged: to position Newport Beach as one of the most desirable luxury destinations in the world. To guide us forward, we've introduced a strategic framework that reflects not just what we do, but how we operate - anchored in data, inspired by creativity, and designed to respond in real time. The program of work found in this plan is funded by the Transient Occupancy Tax (TOT), which enables us to strategically invest in the promotion and stewardship of our destination. This plan allows us to assess the landscape, build emotional connections, activate demand, measure impact, and respond with confidence when conditions shift. It's a structure that supports both consistency and adaptability, ensuring our destination remains relevant, resilient, and resonant. Newport Beach continues to be defined by its natural beauty, sense of ease, and elevated experiences. In a world of growing complexity, these qualities are more valuable than ever. With this plan, we will bring them to life across every channel and touchpoint - with intention, imagination, and impact. Thank you for your continued partnership and belief in this destination. I am proud of the vision, creativity, and discipline our team brings to every initiative, and energized by what lies ahead. 40 �(P_ Gary C. Sherwin, APR, CDME President & CEO Visit Newport Beach Debbie Snavely Chairperson, Visit Newport Beach VEA Newport Beach, A Marriott Resort & Spa VISIT NEWPORT BEACH Organizational Chart NEWPORT PRESIDENT/ BEACH CEO FOUNDATION 1U ORS 22-5 FY2026 Budgets VISIT NEWPORT BEACH, INC. (TOT) LEISURE BUDGET ALLOCATIONS Revenue BUDGET FY2026 $7,338,581 General & Administrative $2,580,053 Advertising $2,319,110 Marketing $1,457,393 International Marketing $882,025 Hosted Industry Events $100,000 r— 1% .'A � _4 } ■ General & Adminstrative ■ Advertising Marketing International Marketing Hosted Industry Events i rid r ■ tit VISIT NEWPORT BEACH, INC. TOURISM- OCCUPANCY(TOT) Goals FY2025 • YTDACHIEVED FORECAST AS OF 4130/25 TOPLINE GOALS & KEY PERFORMANCE INDICATORS FOR LEISURE TRAVEL TO NEWPORT BEACH TOURISM -OCCUPANCY TAX (TOT) REVENUE TO THE CITY OF NEWPORT BEACH $35,315,612 $31,8009000 $369375,080 MARKETING CAMPAIGN ECONOMIC IMPACT` $50,000,000 $50,677,137 $50,000,000 DIGITAL MARKETING, CONTENT MARKETING & SOCIAL MEDIA (OWNED & PAID MEDIA CHANNELS) VISITNEWPORTBEACH.COM WEB VISITS 1,700,000 1,310,311" 1,700,000 SOCIAL MEDIA FOLLOWERS 350,000 316,175*' 385,000 INTENT TO TRAVEL THROUGH ENGAGEMENT N/A N/A 550,000 CONSUMER DATABASE/NEWSLETTERSSENT 38,000/30 37,175/30 45,600/40 PARTNER DATABASE/NEWSLETTERS SENT 700/60 729/52 830/65 ADVERTISING (PAID MEDIA CHANNELS) TOTAL AD IMPRESSIONS- 180,000,000 132,855,315 162,000,00 ONLINE AD CLICKS TO SITE 350,000 916,211 1,100,000 MEDIA RELATIONS MEDIA PLACEMENTS (DOMESTIC + INTERNATIONAL) 1,400 1,149 1,400 KEY CONSUMER MEDIA PLACEMENTS 350 417 437 KEY TRADE MEDIA PLACEMENTS (B2B) 145 253 265 "SOURCE: SOJERN -DECREASED TRAFFIC DUE TO PAUSED ADVERTISING FOR A 30-DAY PERIOD (LA FIRES). "'FY2025 GOAL REFLECTED A 3%DECREASE WHILE THERE WAS 38%DECREASE IN ADVERTISING BUDGET FROM PRIOR YEAR FY2024. 22-7 International Travel: Long Haul Luxury FOUR with Global Sensitivity On the international front, ongoing trade tensions, alongside a strong U.S. dollar, are contributing to market uncertainty. While travel itself is not directly targeted, these broader economic shifts may impact high -net -worth global travelers, especially those sensitive to currency fluctuations and global perceptions of U.S. stability. In this environment, Newport Beach will position itself as a long -haul destination worth the splurge. Storytelling will focus on exclusivity, wellness, and once- in -a -lifetime experiences that go beyond consumption, offering travelers emotional richness, privacy, and curated luxury. From "bucket list" positioning to personalized itineraries and VIP perks, the destination will appeal to the values of today's global luxury audience: quality over quantity, meaning over material, and connection over convention. Domestic Travel.• International, FIVE Proximity Driven, and Value -Conscious While the U.S. economy has not formally entered a recession, consumer sentiment suggests a more cautious approach to discretionary spending. Travelers are still prioritizing leisure getaways but with greater intentionality. Drive markets remain strong, as audiences look for nearby escapes that feel effortless yet enriching. Newport Beach is uniquely positioned to deliver on this demand. Our approach will highlight proximity and escapism, elevated experiences, and the emotional return on investment - reward, reset, and reconnection. Messaging will lean into restorative luxury, wellness, and curated itineraries, while incentives like hotel offers or added -value partnerships to support need periods. Domestic and international luxury travelers may not downgrade or stay home but will want added value such as VIP perks, private experiences, and "insider" access. Visit Newport Beach will work closely with hotel, retail, and experience partners to curate exclusive offerings and ensure these high -value travelers feel recognized, rewarded, and deeply connected to the destination. Visit Newport Beach will remain deeply engaged with both domestic and international market conditions, leveraging data, insights, and real-time intelligence to guide our approach. In an environment defined by both opportunity and uncertainty, we will continue to listen, adapt, and pivot where necessary, ensuring our brand stays relevant, resilient, and ready to meet the evolving needs of today's travelers. 22-8 10 AUDIENCE Overview Leisure Traveler (n) A curious soul fueled by wanderlust and weekend dreams, the leisure traveler seeks out experiences over itineraries and sunsets over spreadsheets. Whether jetting off for a spontaneous getaway or planning the ultimate bucket -list escape, they travel not for obligation, but for inspiration. They're connoisseurs of culture, food, and unforgettable moments —turning hotel stays into home -away -from -home adventures and casual strolls into stories worth telling. For them, the journey is just as important as the destination —and the destination better come with good wine, cozy vibes, and serious Instagram potential. Local Community The heart and soul of the destination, the local community isn't just the backdrop —they're the storytellers, culture keepers, and warm smiles that turn a place into a feeling. These are the small business owners, artists, chefs, entrepreneurs, and everyday champions who shape the character of the city and welcome visitors like neighbors. They care deeply about where they live and are invested in its growth, beauty, and well-being. For them, tourism is more than economic —it's personal. When engaged and empowered, the local community becomes the destination's greatest advocate and most authentic voice. Corporate Strategic, brand -conscious, and results -driven, the corporate audience values clear communication, measurable impact, and alignment with company goals. This includes executive leadership, stakeholders, both external and internal, who rely on consistent, professional messaging to inform, engage, and inspire their businesses. For them, storytelling must be rooted in purpose —whether it's fostering brand reputation, supporting employee engagement, or communicating initiatives that drive growth and innovation. They seek partnerships and messaging that reflect credibility, accountability, and long-term vision. 22-9 A A S S E S S PURPOSE: Understand the landscape. Ground every initiative in real-time data, research, and real -world context. OBJECTIVE: Leverage regional intelligence, visitor data, and macro trends to shape a marketing strategy that is informed, empathetic, and responsive. By staying attuned to economic shifts, traveler sentiment, and environmental disruptions, Visit Newport Beach can lead with foresight and precision. STRATEGIES: • Monitor regional and global developments, including economic trends, political shifts, and environmental events, to stay ahead of potential impacts. • Deepen business intelligence through updated research and data partnerships. • Measure brand perception and engagement on an ongoing basis to inform positioning and messaging. v• Maintain dynamic reporting via Blue Room Research dashboards. U • Conduct a refreshed visitor profile and brand engagement study. H • Develop a crisis risk map and monitor market volatility across key regions. • Deliver monthly reporting on visitation, length of stay, and audience psychographics. C R E A T E PURPOSE: Build the brand. Inspire emotional connection. Drive cultural relevance. OBJECTIVE: Position Newport Beach as a modern luxury lifestyle brand that resonates with high -value travelers. Through bold creative, elevated storytelling, and strategic brand programs, we will bring our promise —Luxury at Your Leisure —to life. STRATEGIES: • Produce breakthrough campaigns and destination storytelling across paid, owned, and earned channels. • Extend the brand through lifestyle merchandise (Newport Beach, The Label) and other creative expressions. • Align with tastemakers, talent, and cultural institutions to amplify brand relevance. • Strengthen engagement and loyalty through the evolution of Newport Beach Vacation Club. v• Launch multi -platform brand campaigns and content series centered around core pillars v (hotels, dining, wellness, nature, events). • Enhance merchandise through seasonal collections and limited -edition collaborations. • Expand Newport Beach Vacation Club with curated experiences, exclusive perks, and always -on content. • Activate brand partnerships across film festivals, culinary events, awards shows, and more to boost visibility and aspirational appeal. 22-10 • A C T I V A T E PURPOSE: Drive demand. Convert intent into action. Generate measurable economic impact. OBJECTIVE: Deploy high -performing, full -funnel campaigns that generate awareness, inspire travel, and drive bookings from Newport Beach's top regional, national, and international markets. STRATEGIES: • Deliver precision -targeted campaigns across the full funnel —from awareness to conversion. • Expand regional demand in drive and fly markets, including Los Angeles, Orange County, San Diego, Phoenix, Las Vegas, and the Bay Area. • Amplify Newport Beach's luxury positioning through targeted media, PR, and influencer engagement. • Selectively scale international earned presence through PR efforts and brand activations. IN R E A C T PURPOSE: Stay steady in the storm. Lead with empathy. Maintain brand trust. OBJECTIVE: Reinforce brand resilience by responding swiftly and thoughtfully to crises. Whether environmental, political, or social, Visit Newport Beach will maintain a calm, credible voice that supports both travelers and the local community. STRATEGIES: • Refresh and operationaIize the crisis communications pIaybook to reflect today's risks and realities. • Use brand platforms to provide relevant, reassuring information during disruptions. • Maintain agility in message timing, tone, and channel strategy. v• Establish an internal and external task force to guide rapid response. v• Execute integrated paid, earned, and organic media across campaigns, seasonal pushes, and v • Develop pre -approved messaging templates for various crisis scenarios. � marquee moments. c� • Build real-time pivot plans to adjust media placements, creative assets, and content • Drive regional traffic with event -based promotions and off-season messaging. calendars as needed. • Lead influencer partnerships and content -driven PR programs. • Place the brand in premium luxury media environments and strategic sponsorships. I I M P A C T PURPOSE: Measure what matters. Optimize continuously. Prove value with precision. OBJECTIVE: Ensure every initiative is backed by performance data, tied to clear KPIs, and optimized in real time. Through a robust business intelligence ecosystem, Visit Newport Beach will hold all marketing accountable to outcomes that drive destination -wide results. STRATEGIES: • Use real-time analytics and dashboards to guide strategic decisions. • Optimize campaign performance, landing experiences, and conversion pathways. • Establish measurable goals and track success across all initiatives. v• Maintain live dashboards tracking KPIs across channels and markets. U • Produce market -specific performance reports with actionable insights. H • Run A/B testing to refine messaging, creative, and CTAs. • Track cross -channel conversion from media to bookings. • Conduct a Tourism Economic Impact Analysis to quantify return. 22-11 Objective ONE Drive Sustainable Growth and Community Prosperity PURPOSE: Ensure tourism supports local businesses and the year-round vitality of all neighborhoods. STRATEGIES: • Promote high -value, off-peak travel that supports balanced growth. • Elevate small businesses and neighborhood events through place -based content. • Partner with business districts for year-round programming and visibility. • Create hyper -local seasonal itineraries and neighborhood guides. v • Launch integrated campaigns that showcase community flavor. • Report on campaign results with emphasis on local business uplift. Objective TWO Champion Transparency and Community Trust PURPOSE: Keep residents informed and engaged by making tourism performance visible, understandable, and accountable. STRATEGIES: • Provide regular updates on tourism impact, seasonality, and ROL • Translate complex data into digestible, community -first formats. • Build trust through clear, consistent communications and visible benefit. v• Share a weekly "Community Impact Insights" dashboard with key metrics and updates. • Conduct an updated visitor profile study produced by a third -party research partner. • Publish quarterly community -facing reports on campaign outcomes and economic contributions. Objective THREE Strengthen Civic Alignment and Engagement PURPOSE: Collaborate with local leaders and organizations to ensure tourism complements community goals. STRATEGIES: • Establish inclusive planning forums and neighborhood feedback loops. • Deepen partnerships with civic organizations, chambers, and resident groups. • Share timely data to empower localized marketing and policy alignment. v• Distribute a Civic Partner Toolkit with ready -to -use assets and research. v • Provide custom visitor insights to help neighborhood leaders shape programming. 22-12 ONEAdvance Economic Leadership OBJECTIVE: Fuel year-round vitality by driving thoughtful visitation that supports local businesses, sustains neighborhood economies, and aligns with the city's infrastructure and community rhythms. STRATEGIES: • Demonstrate the economic value of tourism to the city's fiscal health. • Align tourism with infrastructure, investment, and city development goals. • Represent the sector in policy, planning, and development conversations. TACTICS: • Publish annual Economic Impact Reports featuring TOT, job creation, and visitor spend data. • Deliver custom market intelligence and quarterly briefings for city leaders and stakeholders. • CORPORATE Launch a Citywide Economic Impact Dashboard for corporate and civic use. TWO Drive Year Round Revenue and Hotel Performance OBJECTIVE: Support lodging performance through diversified, demand -driven marketing and booking optimization. STRATEGIES: • Expand high -value segments like luxury and international travel. Visit Newport Beach's corporate business objectives • Align seasonal marketing with compression periods and pacing data. • Leverage market insights to optimize media and sales strategies. for FY 2026 are built on the foundation of economic leadership, destination stewardship, and community TACTICS: • Host targeted FAM trips for international buyers and luxury media. • Implement international re-entry plan with KPIs per market. alignment. Through clear strategies and measurable • Use real-time pacing to dynamically allocate media investment. outcomes, Visit Newport Beach will drive sustainable visitor growth, support citywide prosperity, and THREE Model Fiscal Stewardship andAccountability strengthen its role as a trusted civic and business partner. By focusing on transparency, innovation, OBJECTIVE: Maintain responsible and transparent management of tourism marketing investment. strategic partnerships, and long-term destination STRATEGIES: • Continue to follow best practices in governance, compliance, and procurement. • Deliver clear financial reporting and board engagement. development, the organization will continue to • Quantify ROI across all major programs. position tourism as a catalyst for economic vitality TACTICS: • Maintained contract compliance, procurement, and T&E policy frameworks. and shared success. • Use independent audits and third -party research for program evaluation. FOUR Advance Destination Development and Vision OBJECTIVE: Guide long-term planning that sustains Newport Beach's position as a leading luxury destination. STRATEGIES: • Identify infrastructure, experiences, and events that elevate the destination. • Foster innovation and resilience through investment and research. TACTICS: • Grow and support iconic events that build brand equity. • Use business intelligence to benchmark competitive set performance. • Identify long-term investments to improve the visitor experience. FIVE Cultivate Strategic Partnerships and In. f l'uence OBJECTIVE: Deepen stakeholder alignment across tourism, business, and civic sectors. STRATEGIES: • Expand relationships with hospitality, tech, development, and transportation. 18 • Serve as a resource for brand support, marketing strategy, and business consulting. TACTICS: • Develop marketing toolkits, creative assets, and co -branded opportunities to partners. • Secure speaking opportunities for executive leadership at key industry events. 22-13 z c� a a V J Q z 0 U) a W FY 2025 - 2026 BRAND CALENDAR SUMMER LEISURE CAMPAIGN FY 2025 FALL LEISURE CAMPAIGN HOLIDAY LEISURE WINTER LEISURE CAMPAIGN FY 2026 SPRING/SUMMER LEISURE CAMPAIGN U) Qa WORLD CUP wa SUPER BOWL ASPEN FOOD &WINE tan = CLASSIC a wJ 12 DECADES IN Fm CAPTAIN'S NEWPORT NEWPORT BEACH UGLY CHRISTMAS NEWPORT BEACH M J ORDERS SPORT VACATION KIDS SWEATER/ORNAMENT MERCH SEASONAL CAMPAIGNS 0 EVENTS SPECIAL PROGRAMS NB THE LABEL 0 CORPORATE * As of July 1, 2025, the `Exective Committee' will be renamed 'Board of Directors' and the'Board of Directors' will now be referred to as the'Newport Beach Hospitality Council' 21 22-14 BOARD OfDirectory AMY DEIFT City Cruises ANDREBROSE Lido House Hotel ANNIE PAINTING Hyatt Regency Newport Beach ANTHONY HARTWELL Newport Beach Marriott Bayview ANTONELLA CASTRO Newport Beach Foundation CANDACE BISCONTE Eventis Destination Services CHARLENE REYNOLDS** John Wayne Airport (SNA) CINDY RACCO Balboa Bay Resort & Club DAVID HOFFMAN Pendry Newport Beach DEBBIE SNAVELY VEA Newport Beach, A Marriott Resort & Spa GERARD WIDDER Fashion Island GREGG SCHWENK** Newport Beach Film Festival HENRY PYLE Balboa Fun Zone HOMER BLUDAU Former City Manager JASON AL -IMAM** City of Newport Beach JOHN WORTMANN** City of Newport Beach KEVIN KELLY The Resort at Pelican Hill KORY KRAMER Eagle Four Partners LINDA M. BEIMFOHR Former VP of City Cruises MARIO MAROVIC Lounge Group MARKUS KOHN Renaissance Newport Beach PHIL RAVENNA Newport Dunes Waterfront Resort & Marina 'GOVERNANCE BOARDS AS OF 6/30/25. NEW BOARD OF DIRECTORS AND HOSPITALITY COUNCIL TO TAKE AFFECT ON 7/1/25. "*EX-OFFICIO, NON -VOTING MEMBER RUSH HILL NRM Real Estate Advisers SHARON WOOD City of Newport Beach STEVE ROSANSKY Newport Beach Chamber of Commerce TONY PETROS LSA WASIM KAZI Hyatt Regency John Wayne Airport Newport Beach MARKETING Committee CHAIRPERSON BEN STINNETT VEA Newport Beach, A Marriott Resort & Spa ANNASOPHIA SERVIN John Wayne Airport, Orange County COLLEEN DALUISIO Balboa Fun Zone Company, LLC DON CHOCK Hyatt Regency Newport Beach ELISA WONG Pendry Newport Beach HEIDI PILECKI VEA Newport Beach, A Marriott Resort & Spa JAN HOLLIS Hyatt Regency John Wayne Airport Newport Beach JAN YERZIK Newport Dunes Waterfront Resort & Marina JOHN POPE City of Newport Beach KARYN CARREON City Cruises KATY CHALLENGER Lido House Hotel KELLY CARLSON Balboa Village Merchant Association MAUREEN SLOAN HelmsBriscoe MICHAEL SWYNEY Renaissance Newport Beach MICHELLE ST. AMOUR Lido Marina Village NANCY GARDNER NAVA REZVAN Roger's Gardens SCOTT LaFLEUR Sherman Library & Gardens SIVILAY HENRY Balboa Bay Resort STEPHANIE HINKLEY Irvine Company Resort Properties VALERIE ROBLES Fashion Island 23 22-15 EXECUTIVE Team N ■ � GARY C. SHERWIN, MICHELLE DONAHUE, ASHLEY JOHNSON, LILY PEARSON CDME, APR CDME CDME CHIEF FINANCIAL OFFICER PRESIDENT & CEO SENIOR VICE PRESIDENT SENIOR VICE PRESIDENT OF SALES & CHIEF MARKETING OFFICER ADMINISTRATION LAURO GARCIA ACCOUNTING MANAGER ELIZABETH GARCIA TECHNICAL SUPPORT COORDINATOR BRITTANY CASSIDY DIRECTOR OF ADMINISTRATION IRIE JIMENEZ ADMINISTRATIVE ASSISTANT l — ,...=y'•a�� - - •- _ -: ��.�-_:,.-.-'::.i_ '�+a '- +�'_• :__'�-�y,i� f..::, - �-Y�++��a>.s.�.Aa�i,.,.s�wx+�ar,,,�w'�`•� ;.�a�..ti ^•- ..�: - �_ ...u": �syr's..:•���'•.-�+.: �-„ ;r''.iC'•,�.� _ -� _ _._ _ �K� •rrz-? � '-r1^�Fu� .. ' ;r_,i _ .� i _ - ..,.. i'-`. �' �„f _ __�'_'E�� �V+:..�.-,•�� � _ •-• � ••� -" Y•• � ..c - air � s y r•. f 7'�7���� •-�.:_...�• T .. 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R�.z �= �= -=r f4 26 This annual supplement is designed to highlight key refinements and updates to our two-year "big book" destination business plan, ensuring we remain agile, responsive, and aligned with our organization's evolving priorities. It serves as a dynamic companion to our comprehensive plan, capturing shifts in strategy, emerging opportunities, and new initiatives that have taken shape over the past year. As you review this document, we hope it provides a clear and insightful understanding of our strategic direction for FY2026 — including priority initiatives, programmatic highlights, and the metrics that will guide our success. Your engagement with this plan is essential as we continue to adapt, innovate, and deliver meaningful impact across our core audiences. © 10 VISIT 1 NEWPORT■: 13LACH VISIT NEWPORT BEACH 2O25 1600 NEWPORT CENTER DRIVE • STE. 120 NEWPORT BEACH, CA 92660 VISITNEWPORTBEACH.COM ' 949.719.6100 ' 800.94.COAST 22-18 ATTACHMENT B m VISIT EWPCfT BE AC I-1 CALIFORNIA Visit Newport Beach, Inc. Leisure Marketing (TOT) FY2026 Budget FY 2026 6/30/2026 Proposed Budget Operating Revenue Revenue 41001 - TOT Income 7,306,081.00 Total Revenue 7,306,081.00 Other Income 46001 - Interest Income 25,000.00 46004 - Miscellaneous Income 7,500.00 Total Other Income 32,500.00 Total Operating Revenue 7,338,581.00 Expenses Salary and Wages 61010 - Salaries and Wages 1,295,000.00 61015 - Bonuses and Commissions 140,000.00 61020 - Auto Allowance 18,450.00 61030 - Payroll Tax Expenses 115,000.00 61040 - Accrued PTO Expense 15,000.00 Total Salary and Wages 1,583,450.00 Benefits 61110 - Medical Insurance 121,000.00 61115 - Benefit Administrative Fees 360.00 61120 - Dental Insurance 6,200.00 61125 - Vision Insurance 1,300.00 61130 - Life and Disability 15,500.00 61140 - Retirement Plan (401k) 110,750.00 61145 - Deferred Annuity 25,000.00 61150 - Flexible Spending Plan 1,750.00 61160 - Employee Engagement Benefit 16,750.00 Total Benefits 298,610.00 22-19 0 VISIT EWPCfT BE AC I-1 CALIFORNIA Visit Newport Beach, Inc. Leisure Marketing (TOT) FY2026 Budget General and Administrative Expenses Operating Expenses 64100 - Office Supplies 64101 - Kitchen Supplies 64110 - Office Equipment Leases 64115 - Office Equipment (non-deprec) 64120 - Equipment Repairs & Maintenance 64125 - Computer Software (non-deprec) 64130 - Voice and Data - Office 64135 - Telephone - Mobile 64140 - Postage 64145 - Shipping Charges 64150 - Bank Fees 64160 - Membership Dues 64165 - Subscriptions 64170 - Team Meetings 64175 - Governance Meeting Expenses 64180 - Education 64190 - Business Licensing and Fees 64300 - Depreciation Expense 64600 - Business Meals/Entertainment Total Operating Expenses Office Lease and Expenses 62100 - Office Lease 62110 - Office Repairs and Maintenance 62120 - Offsite Storage Total Office Lease and Expenses Insurance 63100 - General Liability Insurance 63200 - Workers Compensation Insurance 63300 - Board of Directors Insurance FY 2026 6/30/2026 Proposed Budget 8,000.00 4,650.00 2,870.00 9,000.00 19,698.00 37,015.00 10,440.00 20,460.00 660.00 2,400.00 2,200.00 48,850.00 3,500.00 24,000.00 22,500.00 41,087.00 750.00 54,200.00 7,000.00 319,280.00 187,248.00 3,780.00 9,030.00 200,058.00 2,185.00 6,300.00 3,800.00 22-20 0 VISIT EWPCfT BE AC I-1 CALIFORNIA Visit Newport Beach, Inc. Leisure Marketing (TOT) FY2026 Budget FY 2026 6/30/2026 Proposed Budget 63400 - Professional Liability Insurance 7,100.00 63500 - Crime Liability Insurance 2,500.00 Total Insurance 21,885.00 Professional Fees 64205 - Payroll Processing Service 6,120.00 64206 - Independent Contractors 80,000.00 64201 -Audit Fees 35,000.00 64202 - Tax Preparation Fees 6,000.00 64204 - Legal Fees 3,000.00 Total Professional Fees 130,120.00 Travel Expenses 65100 - Airfare 5,050.00 65200 - Accommodations 12,350.00 65300 - Meals 6,500.00 65400 - Transportation Costs 1,500.00 65405 - Mileage ($0.70/mile 2025) 750.00 65500 - Other Travel Costs 500.00 Total Travel Expenses 26,650.00 Total General and Administrative 697,993.00 Advertising Expenses 66101 -Advertising 1,610,177.12 66121 - Promotional Gift Cards 1,000.00 66202 - Creative Production 439,000.00 67101 - Research 268,932.67 Total Advertising Expenses 2,319,109.79 Marketing Expenses Community Relations 67105 - Awards 2,000.00 67107 - Promotional Items 72,400.00 22-21 0 VISIT EWPCfT BE AC I-1 CALIFORNIA Visit Newport Beach, Inc. Leisure Marketing (TOT) FY2026 Budget FY 2026 6/30/2026 Proposed Budget 67111 - Community Partnerships 112,500.00 Total Community Relations 186,900.00 Event Marketing 67103 - Community Partner Events 457,000.00 67102 - Christmas Boat Parade 193,000.00 Total Event Marketing 650,000.00 Marketing Collateral 67309 - Business Plan 18,000.00 67311 - Collateral Production Expenses 25,000.00 Total Marketing Collateral 43,000.00 Digital Marketing 67501 - Social Media 156,000.00 67502 - Website Maintenance 29,871.00 67503 - SEO/SEM 49,200.00 66211 - CRM Maintenance & Platform Subscriptions 15,284.00 Total Digital Marketing 250,355.00 Communications/Public Relations 67601 - PR Agency/Tracking/Copywriting 217,138.00 67602 - Media FAM Tours 60,000.00 67607 - Media Relations 20,000.00 67608 - Media Missions 30,000.00 Total Communications/Public Relations 327,138.00 Total Marketing Expenses 1,457,393.00 International Marketing Initiatives 67401 - International Brand Activations 200,000.00 67402 - International FAM Tours 15,000.00 67405 - International Airfare 33,000.00 67406 - International Accommodations 50,000.00 67407 - International Meals 3,500.00 67408 - International Transportation Costs 5,000.00 22-22 u VISIT EWPCfT BE AC I-1 CALIFORNIA Visit Newport Beach, Inc. Leisure Marketing (TOT) FY2026 Budget FY 2026 6/30/2026 Proposed Budget 67409 - International Other Travel Costs 3,000.00 67410 - International Business Meals/Entertainment 4,000.00 67411 - International Promotional Items 3,000.00 67412 - International Brand Events 565,525.21 Total International Marketing Initiatives 882,025.21 Sponsorships 66232 - Hosted Industry Events 100,000.00 Total Sponsorships 100,000.00 Total Expenses 7,338,581.00 Net Income 22-23 ! I11 fir, ttil.li _ �1 4 FY 2025 VISIT NEWPORT BEACH, INC. LEISURE MARKETING (TOT) Performance STANDARDS REPORT J U LY 11 2024 - JUNE 30, 2025 To Urism remains a cornerstone of the Newport Beach economy, fueling employment growth, income generation, and infrastructure enhancement. The influx in quality visitors translates into substantial spending across various sectors, including hotels, restaurants, attractions, retail, and local businesses, making tourism a vital driver of economic development. As Visit Newport Beach tackles new opportunities in leisure marketing, we are focused on boosting visitor spending by highlighting the luxury renaissance in our hotel, resort, and retail product, while promoting and marketing our visitor -serving partner businesses, local investors, and residents who contribute to revitalizing our destination appeal and enhancing our performance as destination marketers in the coming yea rs. Our approach involves leveraging the full spectrum of marketing initiatives to achieve these objectives. Through integrated efforts across marketing, communications, advertising, digital platforms and media relations, we aim to nurture relationships that keep Newport Beach aligned with emerging travel trends. Our goal is to drive incremental visitation and spending to Newport Beach, ensuring our city remains a top choice for travelers. The cross -functional team at Visit Newport Beach has developed an integrated business plan specifically tailored for the leisure traveler customer segment. This plan sets quantifiable objectives, implements strategies designed to achieve those objectives through innovative marketing, and outlines tactics that support overarching strategies. By harnessing the collective resources and expertise of our marketing team, we are poised to deliver impactful results and solidify Newport Beach's position as a premier travel destination. VISIT NEWPORT BEACH, INC. (TOT) TOTAL Annual Performance FY2025 YTD ACHIEVED AS OF 4/30/25 1.1 K TOTAL PR/MEDIA PLACEMENTS 132M UM TOTAL AD TOTAL WEBSITE IMPRESSIONS SESSIONS 916K 316K TOTAL AD TOTAL SOCIAL MEDIA CLICKS FOLLOWERS 22-21 A AP - �,• SUMMER 2024 Newport Beach is Calling JUNE 20 - AUGUST 18 $17m4M 90114®M10 IMPS 23M 280K AD IMPRESSIONS WEBSITE LANDING PAGE VIEWS 60K 130M SOCIAL MEDIA SOCIAL MEDIA IMPRESSIONS REACH 151 M PUBLIC RELATIONS IMPRESSIONS 22-22 FALL 2024 Newport Beach Vacation Kids Club AUGUST 19-NOVEMBER1 $17M ECONOMIC I M PACT 26M 178K AD IMPRESSIONS WEBSITE LANDING PAGE VIEWS 2M 226K SOCIAL MEDIA SOCIAL MEDIA IMPRESSIONS REACH 128M PUBLIC RELATIONS IMPRESSIONS 22-23 HOLIDAY 2024 50 Days of Festive Fun NOVEMBER 15 - JANUARY 3 $809m ECONOMIC I M PACT 26M AD IMPRESSIONS 1AM SOCIAL MEDIA IMPRESSIONS 48K WEBSITE LANDING PAGE VIEWS 613K SOCIAL MEDIA REACH 567M PUBLIC RELATIONS IMPRESSIONS 22-24 WINTER 2025 ApYes SW Sea JANUARY 6 - MARCH 2 (PAUSED FROMJAN.17-FEB.I7DUE TO FIRES) $6m9M ECONOMIC I M PACT 14M AD IMPRESSIONS 15K WEBSITE LANDING PAGE VIEWS 1.3M 214K S00AL MEDIA SOCiAL ivIEDiA IMPRESSIONS REACH 2.7M PUBLIC RELATIONS IMPRESSIONS 22-25 SPRING/ SUMMER 2025 Newport Beach is Calling MARCH 3 -AUGUST 31 Campaign is still underway, so metrics won't be received until September 2025. 22-26