Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
12 - VNB & TBID Annual Reports
CITY OF NEW'PORT BEACH Cy��OP City Council Staff Report Agenda Item No. 12 July 10, 2012 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FRONT: City Manager's Office Dave Kiff, City Manager 949 - 644 -3002, dkiff(a)newportbeachca.gov PREPARED BY: Tara Finnigan, Public Information Manager APPROVED: A n TITLE: Visit Newport Beach, Inc. and Newport Beach Tourism Business Improvement District Annual Reports ABSTRACT: Visit Newport Beach, Inc. (VNB), the destination marketing organization for the City of Newport Beach, has submitted its annual Marketing & Business Plan and budget for the City Council's review and approval. VNB, which also serves as the administrator for the Newport Beach Tourism Business Improvement District ( NBTBID), has also submitted the NBTBID's FY 2012 - 2013 Annual Report for Council review and approval. RECOMMENDATION: 1. Approve the Fiscal Year 2012 - 2013 Visit Newport Beach, Inc. Marketing & Business Plan and budget. 2. Approve the Fiscal Year 2012 - 2013 Newport Beach Tourism Business Improvement District Annual Report and budget. FUNDING REQUIREMENTS: The current adopted budget includes sufficient funding for this project. Under its agreement with the City of Newport Beach, VNB receives 18% of all Transient Occupancy Tax collected by the City to fund destination marketing services and activities. In addition, the NBTBID assesses its seven member hotels 2.0% of gross short term (stays less than 30 days) room rental revenue. The assessments levied for the NBTBID are applied toward the activities described in the Management District Plan (amended by the City Council on April 24, 2012) and summarized in its FY 13 annual report. Visit Newport Beach, Inc. and Newport Beach Tourism Business Improvement District Annual Reports July 10, 2012 Page 2 DISCUSSION: Visit Newport Beach, Inc. Visit Newport Beach, Inc. (VNB), a non -profit organization (under IRS code §501(c)(6)), is the destination marketing organization for Newport Beach. VNB, under an agreement with the City, provides marketing services to the City and community using transient occupancy tax revenues. The agreement was first entered into on May 12, 2004 and was last amended on September 27, 2011. The current agreement will expire on June 30, 2016. Pursuant to the terms of the agreement, VNB has submitted its Fiscal Year 2012 — 2013 Marketing & Business Plan and budget for the City Council's review. (Attachments A and B) The Council may approve the budget in its proposed form or it may modify the budget before approval. 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 NBTBID includes seven hotels or resorts, each consisting of 100 hotel rooms or more, located within the City of Newport Beach. They are: the Balboa Bay Club and Resort, the Fairmont Newport Beach, the Hyatt Regency Newport Beach, the Newport Beach Marriott Bayview, the Newport Beach Marriott Hotel & Spa, the Newport Dunes Waterfront Resort & Marina, and the Radisson Newport Beach. VNB, on behalf of the NBTBID owners association, has prepared the NBTBID's Fiscal Year 2012 — 2013 Annual Report and budget for the City Council's review and approval. (Attachment C) The report includes a summary of the NBTBID's proposed activities and budget for the new fiscal year. The report does not contain recommendations to alter the BID boundaries or the method and basis for levying assessments in the new fiscal year. 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. Visit Newport Beach, Inc. and Newport Beach Tourism Business Improvement District Annual Reports July 10, 2012 Page 3 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). Submitted by: Tara Finnigan Public Information Ma ager Attachments: A. Visit Newport Beach, Inc. Marketing & Business Plan 2012 -2013 (available for review in the City Clerk's Office and online) B. FY 13 Visit Newport Beach, Inc. Budget C. Newport Beach TBID FY 13 Annual Report and Budget Attachment A - Visit Newporl Business Plan Beach, Inc. Marketing & 2012 -2013 (available for review in the City Clerk's Office and online) s �!� Vsr e 0rt I Nt.. e� 1. INTRODUCTION AND OVERVIEW Letter from the President Governance Organization Brand of Newport Beach Executive Summary United States California Orange County Newport Beach Trends & Forecast Collateral Website Social Media Mobile Applications E- Communications Advertising & Media Strategy Promotions Public Relations contents International Efforts Community Relations Hospitality Training Marketing Goals TOT Budget 4. CONFERENCE SALES (TBID) Marketing & Business Plan Client Events, Sales Missions, Trade Shows Duffy Boat Access Groups & Meetings Research Lead Generation Competition Marketing for Groups & Meetings TBID Budget e Port EACHma z —,4b introduction and overview Ir ewport t , „ INC. letter from the president Each year when this Marketing Plan and Business Plan is created, we always go back and revisit our most important asset, and that is the brand of Newport Beach. Our destination brand is central to all of our efforts to sell this great community around the world. It is this aspirational lifestyle that is at the heart of our brand essence and the single thing that differentiates us as an attractive place to visit apart from other beach communities throughout the OC and the rest of California. This plan is all about capitalizing on this brand and working with our partners throughout the community to not only communicate this brand to our core audiences, but also to make sure once they are here that they truly experience this special Newport Beach lifestyle and go home and tell their friends about it. This past year, this brand was communicated in several new markets, including Australia, one of the few nations with a true healthy economy and a growing market for Southern California in general. We continue to push our efforts into the United Kingdom, which is now our largest international market, contributing 33% of all of our foreign visitation. We are also making a greater push into our back yard and undertaking campaigns to capture more overnight stays from our neighbors in Los Angeles County. This year, we will also explore how Newport Beach can capitalize on the growing demand from China now that visa restrictions are being eased and demand is expected to dramatically increase. On the group front, Visit Newport Beach is completing a record - breaking year, booking for the second time the Bowl Championship Series, which will fill every large hotel property in the city starting after Christmas in 2013. This will also include a significant media contingent and all of the teams and alumni groups. It is as close to a citywide convention as we will ever get. This group contributed to a record 25,000 room nights booked by Visit Newport Beach sales team this year, far surpassing its previous record of 14,200. This fiscal year, we expect the momentum generated by our team to continue as we strengthen relationships with clients who can influence and bring our community business. It is significant to note, however, that marketing this great community is just one part of our collective success. What really sets Newport Beach apart as a brand is the continuous reinvestment in our product by such major players as The Irvine Company and City of Newport Beach. These product improvements keep us fresh and maintain the outstanding manicured look that sets us apart from other destinations. This Marketing and Business Plan is constantly being adjusted and monitored throughout the year to capitalize on new opportunities where we can gain the greatest benefit. Please call on our team if we can be of assistance and make this plan work better for you and your business. Gary C. Sherwin President & CEO Visit Newport Beach Inc. VISIT ,,e-,, w�ort AMB'EACHINC. 4 VISIT ,ew,DOrt l � I' INC. 4. 4:/X6111 RVA role] k51uIIt d44 Chairperson Tom Johnson Johnson PR & Marketing Vice Chairperson Debbie Snavely GM Newport Beach Marriott Hotel & Spa Secretary Linda M. Beimfohr Hornblower Cruises & Events Treasurer Andy Theodorou Newport Dunes Waterfront Resort & Marina Members at Large Daniel Kuperschmid Hyatt Regency Newport Beach Homer Bludau Former City Manager City Delegate Dennis O'Neil City of Newport Beach BOARD OF DIRECTORS Chairperson Tom Johnson Johnson PR & Marketing Candace Bisconte ACCESS Destination Services Russ Kline American Express Seymour Beek Balboa Island Ferry, Inc. Terri Reid Balboa Bay Club & Resort Craig Batley Burr White Realty Dennis O'Neil City of Newport Beach Dave Kiff City of Newport Beach Homer Bludau Former City Manager Mary- Jeanne Kuehn Disneyland Resort Lauren Carr Fairmont Newport Beach Tanya Thomas Fashion Island Linda M. Beimfohr Homblower Cruises & Events governance Charles Taft Holiday Inn Express Newport Beach Danlel Kuperschmid Hyatt Regency Newport Beach Donald Stamets Island Hotel Gregg Schwenk* Newport Beach Film Festival Brion Amendt Newport Channel Inn Andy Theodorou Newport Dunes Waterfront Resort & Marina Kandee Anderson Newport Beach Marriott Bayview Debbie Snavely Newport Beach Marriott Hotel & Spa Cynthia Pirtle Cowell, MLS Newport Beach Public Library Stephen Allgood Radisson Hotel Newport Beach Jim Walker The Bungalow Restaurant Giuseppe Lama The Resort at Pelican Hill 'Not a voting member 5 visit e7w ort P s/ ��EPA(. Rimc. MARKETING COMMITTEE Chairperson Kevin Lorton Homblower Cruises & Event Wendy Boyd American Express Terri Reid Balboa Bay Club & Resort Ralph Prieto Bayshores Peninsula Hotel Tara Finnegan City of Newport Beach Lauren Carr Fairmont Hotel Newport Beach Tim Mattos Hyatt Regency Newport Beach Chad Bustos The Irvine Company Colleen Lambros The Irvine Company Debbie Snavely Marriott Hotel & Spa Lindsey Strutzenberg Marriott Hotel & Spa Michael Ditrancesco Marriott Hotel & Spa Peggy Fort Newport Beach Restaurant Association Gina Kerley OC California's Golf Coast Rachel Gibson OC /John Wayne Airport Jenny Wedge OC/John Wayne Airport Jan Hollis Radisson Hotel Newport Beach Mark Philips The Resort at Pelican Hill Sheri Drewry Wilma's Patio TOURISM BUSINESS IMPROVEMENT DISTRICT GOVERNANCE BOARD OF DIRECTORS Daniel Kuperschmid Hyatt Regency Newport Beach Terri Reid Balboa Bay Club & Resort TBA Fairmont Newport Beach Kandee Anderson Newport Beach Marriott Bayview Debbie Snavely Newport Beach Marriott Hotel Andy Theodorou Newport Dunes Waterfront Resort & Marina Stephen Allgood Radisson Hotel Newport Beach governance MARKETING COMMITTEE Terri Reid Balboa Bay Club & Resort Lauren Carr Fairmont Hotel Newport Beach Tim Mattos Hyatt Regency Newport Beach Michael DiFrancesco Newport Beach Marriott Lindsey Strutzenberg Newport Beach Marriott Hotel & Spa Jan Hollis Radisson Hotel Newport Beach r] MICHELLE DONAHUE Director of Sales AMANDA KLIEM National Sales Manager HILLARY BURTON National Sales Manager ERIN STAPLEY Sales & Research Coordinator BOARD OF DIRECTORS EXECUTIVE COMMITTEE GARY SHERWIN President & CEO JEANETTE PULLIAM Executive Assistant to CEO & CFO LORI HOY National Sales Manager BETTE HADDOCK National Sales Manager OPEN Research /Account Development Manager LESLEY SWAIN Chief Financial Officer BRIANNA SAUCEDO Marketing Coordinator OPEN Project Coordinator ERIN RAMSAUER Visitor Concierge UK REPRESENTATION AUSTRALIA REPRESENTATION VICKI HIGGINS Senior VP Marketing OPEN PR & Communications RUBY GUALBERTO DIR of Brand Marketing & Community Relations MARK RUDYK Online Manager MMGY Ad Agency f_�, ewport 1 \11. ORGANIZATIONAL PRIORITIES Integrated Destination Marketing Visit Newport Beach Inc. is reviewing its organizational structure to better integrate all forms of destination marketing beyond tourism. Those functions include dining, film and event marketing so that all external messaging regarding the destination can be served by a unified umbrella brand and consistent communications. Visit Newport Beach Inc. will be reviewing new organization structures to explore new marketing and management options. Drive Market Campaign This past year a new advertising agency was hired and research was conducted on how to best approach the Los Angeles and Inland Empire drive market with the intent of overnight conversion. This program and the new campaign will be undertaken this year. organization Public Service Hospitality Training This past year, a new curriculum was developed in partnership with the Newport Beach Police Department to better educate public safety officers on quality visitor - service training. This completed program will be conducted this year and a companion program will be created for fire fighters and lifeguards in the city. International Markets This year, Visit Newport Beach Inc. opened its first office in Australia. This office is in addition to operations in the United Kingdom that have helped increase that market to 33% of all international visitation in Newport Beach. This year, Visit Newport Beach Inc. will explore how to best approach the Chinese market, which is expected to be one of the largest international markets into the United States in coming years. Conference Sales Client Engagement The Visit Newport Beach Inc. sales team recorded the largest number of booked room nights in its history this past year. To maintain the team's momentum, Visit Newport Beach Inc. will focus on new programs to enhance existing client engagement and make Visit Newport Beach Inc. the "go -to" organization for group bookings in the city, including a continuation of the "Live the Dream" Sweepstakes program. E] VICIT ewport ING ORGANIZATIONAL VALUES Visit Newport Beach Inc. believes at corporate values should be lived, not just written down. The values below help make Visit Newport Beach Inc. a great organization to work for and will help bring value to our community: organization Innovation Relevance and trending ahead Customer and Stakeholder Centric Fundamental shared message Learning and Knowledge Destination expertise, stay on the cutting edge Flexibility Strategic but adaptable to opportunities Respect Treat others with respect Enjoyment Positive attitude and passion for the destination Wellness Take responsibility for smart choices and foster life balance Resourcefulness Do more with less, be efficient, share best practices Integrity Be ethical and provide transparent communication Commitment Visit Newport Beach Inc. provides the marketing efforts for Newport Beach domestically and internationally. This responsibility requires complete commitment. V16 ort , ewp L. i l INc. �.�. brand of newport beach Brand Promise Newport Beach is an Orange County coastal fantasyland that represents a "taste of the perfect life," a place where visitors can experience a friendly, sophisticated, aspirational lifestyle that permits them to escape from daily reality. Composed of a collection of unique islands and neighborhoods that form 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 allows visitors to relax and dream what can be. Vision As a brand - driven and entrepreneurial destination leadership organization, Visit Newport Beach Inc. is innovative and professional in securing new visitor business to the city. It does for its stakeholders what they cannot do for themselves in telling the compelling Newport Beach story. Mission Statement As the City of Newport Beach's official destination jmarketing organization, the mission of Visit Newport Beach Inc. is to partner with the tourism and hospitality industry by protecting and nurturing the destination brand and to deliver additional spending by leisure and - _ conference visitors, leading to enhanced community economic vitality and quality of life. 10 r wort O � H A C 1-I inc. The 2012/2013 plan for Visit Newport Beach Inc. includes the program of work for the fiscal year beginning July 1, 2012, through June 30, 2013 as well as strategic, long- term planning for the future. This plan adheres to strategies that were initiated this past fiscal year with specific focus on preserving and maintaining five core objectives: Integrated Destination Marketing Visit Newport Beach Inc. is reviewing its organizational structure to better integrate all forms of destination marketing beyond tourism. Those functions include dining, film and event marketing so that all external messaging regarding the destination can be served by a unified umbrella brand and consistent communications. Visit Newport Beach Inc. will be reviewing new organization structures to explore new marketing and management options. Drive Market Campaign This past year, a new advertising agency was hired and research was conducted on how to best approach the Los Angeles and Inland Empire drive market with the intent of overnight conversion. This program and the new campaign will be undertaken this year. Public Service Hospitality Training This past year, a new curriculum was developed in partnership with the Newport Beach Police Department to better educate public safety officers on quality visitor - service training. This completed program will be conducted this year and a companion program will be created for fire fighters and lifeguards in the city. executive summary International Markets This year, Visit Newport Beach Inc. opened its first ever office in Australia. This office is in addition to operations in the United Kingdom that have helped increase that market to 33% of all international visitation in Newport Beach. This year, Visit Newport Beach Inc. will explore how to best approach the Chinese market, which is expected to be one of the largest international markets into the United States in coming years. Conference Sales Client Engagement The Visit Newport Beach Inc. sales team recorded the largest number of booked room nights in its history this past year. To maintain the team's momentum, Visit Newport Beach Inc. will focus on new programs to enhance existing client engagement and make Visit Newport Beach Inc. the "go- to" organization for group bookings in the city, including a continuation of the "Live the Dream" sweepstakes program. Visit Newport Beach Inc. is always focused on how to be more efficient and effective in its efforts to drive more business for our local hospitality industry. This effort to maintain the momentum created over the last year also allows Visit Newport Beach Inc. to focus on long -term planning goals for the future. This long -term planning initiative will create an evolution for Visit Newport Beach Inc. from a traditional Destination Marketing Organization (DMO) to creating the DMO of the future. Visit Newport Beach Inc. provides an already established program of work to market and manage the brand of Newport Beach for visitors and group business. Ideally, this model DMO of the future would fully integrate the already existing marketing and brand management efforts and leverage these activities for a more broad -based representation of Newport Beach. 11 ew ort EAC HIVC. research tA e�ort U.S. research Research is the basis from which Visit Newport Beach Inc. develops the annual marketing plan. It is the critical element that helps us develop our strategy for marketing and sales efforts. Visit Newport Beach Inc. invests in obtaining primary and secondary research studies to gain insight on travel to the U.S., California ,Orange County, and Newport Beach. It is our pleasure to provide you with some of the key findings from these studies. U.S. TRAVEL ECONOMIC IMPACT �r-- U. S. T RAV E L A s ) U L I .4 11 U N U.S. DOMESTIC AND INTERNATIONA-L TRA1rELER EXPENDITt'RES 2000 -2010P (11S$ BILLIONS) 400 BOB r♦ 700 - — — Soo +_ — 900 - - - 400 300 200 . 100 0 2000 2001 2002 2003 2004 2005 2CO6 2307 2008 2009 2010p ■ InternationW Passenger Fares" International Tmve Spending ■ Domestic Travel Spending UPDATED 4/25/2011 13 N Tort U.S. research U.S. TRAVEL ECONOMIC IMPACT Source: U.S. Travel Association, Bureau of Economic Analysis, U.S. Department of Commerce: Office of Travel & Tourism Industry p= preliminary data, 'Includes spending by domestic and international travelers in the U.S. on travel related expenses (.e. transportation, lodging, meals, entertainment & recreation, and Incidental items), 'Spending by International visitors traveling to the U.S. on U.S. Flag carriers that are made outside U.S. 14 tlb T e�ort U.S. TRAVEL FORECAST U.S. TRAVEL A S S C1 C I A T t 0 N U.S. research U -S. Travel Forecasts Updated 11101/2011 'Based on chained 2005 dollars ^1982 -84 =100 -"'Excludes international visitors' spending on traveling to the U.S. on U.S. flag carriers, and other misc. transportation -One person of 50 miles or more, one way, away from home including one or more nights away from home. Sources: U.S. Travel Association's Travel Forecast Model, BLS, Department of Lahor;OTTI, BEA, Department of commerce- 15 2007 2008 00 r r 2011 2012 r Real GDP (S Billions) 13,206.4 13,161.9 12,703 -1 13,088.0 13,306.1 13,585.4 14,018.9 14,502.9 'Unemployment Rate ( %) 4.6 5.8 9.3 9.6 9.1 8.9 7.5 6.2 Consumer Price Index (SPI)" 207.3 215.3 214.5 218.1 224.8 230.1 23S 239.9 Travel Price Index (TPI)•' 244.0 257.7 241.5 250.8 267.6 272.9 281.9 290.4 Total Travel Expenditures to U.S. (S Billions) 738.6 772.9 704.4 758.7 815.2 841.6 877.8 922.0 U.S. Residents 641.3 662.4 610.2 655.2 704.3 725.4 756.3 791.1 Indernational Visitors`" 97.4 110.4 94.2 1035 111.0 116.2 121.5 131.0 Total International Visitors to the U.S. (Millions 56.0 57.9 55.0 59.8 62.3 64.4 66.6 69.9 Overseas Arrivals the U.S. (Millions) 23.9 25.3 23.8 26.4 27.9 29.0 30.2 31.6 Total Domestic Person- Trips'•" (Millions 2,004.5 1,964.9 1,900.6 1,965.7 2,004.9 2,035.8 2,072.1 2,114. Business 494.3 461.1 436.5 451.5 457.9 465.7 473.9 481.3 Leisure 1,510.2 1,503.8 1,464.2 1,514.2 1,547.0 1,570.0 1,598.2 1,632.7 U.S. 2007 Travel Forecasts 2008 (Growth) 2009 2010 2011 2012 r t Real GDP' 1.9% -0.3% -3.5% 3.0% 1.7% 2.1% 3.2% 37 Consumer Price Index (SPI)`• 2.9% 3.8% .0.3% 1.6% 3.1% 2.3 °% 2.1% 2.1% Travel Price Index (TPI)'• 4.5% 5.6% -6.3% 3.8% 6.7% 2.0% 3.391 3.0% Total Travel Expenditures in U.S. 6.1% 4.7% -8.8% 7.7% 7.5% 3.2% 4.3% 5.0% U.S. Residents 5.11% 3.3% -7.9% 7.4% 7.5% 3.0% 4.3% 4.6% Indernational Visitors`• 13.0% 918% 13.5% 3.5% -14.6% -5.1% 10.2% 8.8% 7.2% 4.1% 4.7% 3.4% 4.5% 3.5% 7.8% 4 -9% Total International Visitors to the U.S. Overseas Arrivals the U.S. 10.3% 6 -1% -6 -3% 11.0% 5.9%1 3.9%1 4.3% 4.6% Total Domestic Person- Trips "" 0.2% -2.0% -3.3% 3.4% 2.0% 1.5% 1.8% 2.0% Business -2.8% -6.7% -5.3% 3.4% 1.4% 1.7% 1.8% 1 -6% leisure 1.2% -0.4% -2.6% 3 -4% 2.2% 1.5% 1.8% 2.2% U -S. Travel Forecasts Updated 11101/2011 'Based on chained 2005 dollars ^1982 -84 =100 -"'Excludes international visitors' spending on traveling to the U.S. on U.S. flag carriers, and other misc. transportation -One person of 50 miles or more, one way, away from home including one or more nights away from home. Sources: U.S. Travel Association's Travel Forecast Model, BLS, Department of Lahor;OTTI, BEA, Department of commerce- 15 TIT ewport If tt� � F F A C I INC. TOP TWENTY TOURIST - GENERATING COUNTRIES Mar -12 U.S. research YEAR -TO -DATE 2012 NUMBER OF % RANK NUMBER OF % CHANGE COUNTRY OF RESIDENCE ARRIVALS CHANGE RANK CANADA 2,053,811 5.9 1 MEXICO 1,003,974 17.0 2 JAPAN 345,225 21.4 3 UNITED KINGDOM 343,595 28.5 4 GERMANY 175,117 32.3 5 BRAZIL 118,129 5.0 6 FRANCE 98,974 6.3 7 KOREA, SOUTH 85,618 22.2 8 PEOPLE'S REPUBLIC OF CHINA (EXCL HK) 85,563 54.8 9 AUSTRALIA 78,650 21.8 10 ITALY 58,731 -2.5 11 SPAIN 52,136 12.1 12 INDIA 50,859 20.3 13 ARGENTINA 49,498 36.4 14 VENEZUELA 46,258 43.6 1S COLOMBIA 43,888 53.2 16 NETHERLANDS 38,892 -4.1 17 SWEDEN 38,847 14.2 18 SWITZERLAND 30,291 11.2 19 IRELAND 30,276 7.4 20 TOTAL TOP 20 FOR MONTH 4,828,332 13.5 U.S. research YEAR -TO -DATE 2012 NUMBER OF % RANK COUNTRY OF RESIDENCE ARRIVALS CHANGE 1 CANADA 4,914,168 7.3 2 MEXICO 3,041,586 8.8 3 JAPAN 917,646 9.3 4 UNITED KINGDOM 769,458 103 5 BRAZIL 412,181 20.1 6 GERMANY 372,763 21.7 7 PEOPLE'S REPUBLIC OF CHINA (EXCL HK) 313,419 43.8 8 KOREA, SOUTH 299,506 12.2 9 FRANCE 267,119 3.5 10 AUSTRALIA 213,523 13.2 11 ARGENTINA 150,310 23.3 12 ITALY 147,726 -0.1 13 INDIA 140,983 14.2 14 SPAIN 115,361 2.6 15 VENEZUELA 111,899 30.3 16 NETHERLANDS 105,683 2.9 17 COLOMBIA 100,571 27.3 18 SWEDEN 96,397 10.1 19 SWITZERLAND 76,S88 9.4 20 ROC (TAIWAN) 69,617 10.9 TOTAL TOP 20 FOR Y -T -D 12,636,504 10.0 -Source: ITA Office of Travel and Tourism Industries 16 U.S. research VISITATION TO THE UNITED STATES: BUSINESS TRAVEL (1) VS. PLEASURE TRAVEL FROM SELECTED OVERSEAS COUNTRIES YEAR TO DATE FEBRUARY 2012 Country of Residence Percent Change Business Travelers Percent Change Pleasure Travelers Pleasure Arrivals Rank Total Arrivals Percent Change Total Arrivals Total Overseas Arrivals Rank Business Travel Percent of Total Pleasure Travei Percent of Total JAPAN 7 3 1 572,421 "s 1 10.9% 87.7% UNITED KINGDOM 2 -2 2 425,863 -1 2 26.1% 72.9% BRAZIL -2 32 3 294,052 27 3 8.2% 89.7% KOREA, SOUTH 12 12 4 213,888 9 5 15.8% 72.5% PEOPLE'S REPUBLIC OF CHINA (EXCL HK) 6 60 5 227,856 40 4 18.5% 56.2% GERMANY 4 20 6 197,646 14 6 33.9% 64.2 FRANCE 0 3 7 168,145 2 7 23.0% 74.9% AUSTRALIA 4 10 8 134,873 9 8 16.9% 82.3% ARGENTINA -6 20 9 100,812 18 9 7.1% 92.1% ITALY -2 3 10 86,995 2 11 24.8% 72.7'.4 VENEZUELA 8 25 11 65,641 22 13 11.7% 82.9% SPAIN 3 -6 12 63,225 -4 14 21.4% 74.0% INDIA -6 35 13 90,124 11 10 29.3% 51.2 %i COLOMBIA 2 16 14 56,683 13 16 16.1% 79.5% NETHERLANDS -3 14 15 66,791 8 12 31.9% 67.1% SWEDEN 1 10 16 57,550 8 15 22.8% 73.8% SWITZERLAND 5 9 17 46,297 8 18 26.6% 70.4% ROC (TAIWAN) .1 22 18 50,193 11 17 23.0% 61.2°% IRELAND -5 -7 19 36,339 -7 19 23.2% 76.4% CHILE 4 6 20 30,924 6 24 13.7% 83.3% Total Overseas (2) Non - Resident visits 2 12 3,823,994 9 19.1% 74.8% Source: U.S. Department of Commerce, Office of Travel 8 Tourism Industries (t) The monthly figures on all travelers from each county to the United States represents mainly business, pleasure and student travelers. For some countries, there is a difference in the rate of change by the type visa. The table above shows these difference for the top 20 overseas tourist- generating countries, specifically the change in business travel versus pleasure travel. (2) "Overseas" excludes Canada and Mexico 17 j INC. U.S. TRAVELER SENTIMENT INDEX Following a sharp increase in February, April's overall Traveler Sentiment IndexTM (TSI) is virtually unchanged from February, but up nearly 10 points from April 2011. Two key factors, "affordability of travel" and "personal finances available for travel" exhibited the largest gains, rising by 26 points and 15 points. 105 05 h Overall Traveler Sentiment Index March 2007- April 2012 March 2007 Base 75 Mu b inn Au art D9c Iro Jpl N nn lep Gq IJ Mt /ro d �91 IJ U[t Ipp 4pl IY (M Ii0 .Y9 0T OI OT' 01 OT OT Od GB [8 % 09 03 03 09 10 10 to loll it 11 11 R It OrcraB l00 %3 89A'9t 1 91.1 89D 9iD UA T8.3 182 903 89.191.19115 91D 96A 88) 8R %I Q.9 Y83 850 938 Y33 U.S. research OBAMA EASES VISA RULES TO BOOST U.S. TOURISM President Obama declared that "America is open for business" and laid out steps to make it easier for some foreign visitors to travel here. The president announced an executive order designed to reduce the time in takes for travelers from China and Brazil to get visas to the United States. His order would eliminate the need for visitors from Taiwan to get visas at all to visit — something citizens of 36 nations, mostly in western Europe and from Japan and Australia, now enjoy. He is making permanent the Global Entry program, which allows travelers who undergo rigorous background checks to breeze through customs. He ordered the Commerce and Interior departments to develop a national tourism strategy that highlights national parks and cultural and historic sites. And he's adding business executives to a tourism advisory board. All the steps, Obama said, are designed to create jobs. 'Source: Overall Traveler Copyright m 2012 by MMGY Global and the U.S. Travel Association. All Rights Reserved. 'Source: USA Today 18 ,11k ort ./ 2011 INTERNATIONAL VISITATION SETS NEW RECORD According to the U.S. Department of Commerce, 62 million international visitors traveled to the United States in 2011, a 4 percent increase over 2010. Globally, tourism is expected to continue to grow in 2012, rising 2.8 percent. According to the World Travel and Tourism Council (WTfC), This year, the number of international travelers is expected to surpass 1 billion for the first time and will also pass two other milestones: a direct contribution of $2 trillion to the world economy and 100 million jobs. TOP 15 COUNTRIES BY ARRIVALS Country of Residence % Change 2010 vs. 2009 Canada .......... ............................... +5% Mexico ........... ............................... +0% United Kingdom ... ............................... +0% Japan......... ................................... -4% Germany ......... ............................... +6% Brazil ........... ............................... +26% France .......... ............................... +12% South Korea ....... ............................... +3% People's Republic of China (excl. HK) ................. +36% Australia ......... ............................... +15% Italy............. ............................... +6% Spain............ ............................... +9% India............. ............................... +2% Netherlands ....... ............................... +5% Venezuela ....... ............................... +14% U.S. research GROWTH FOR LODGING INDUSTRY Unprecedented Six Years of Occupancy Growth, Outlook Positive Through 2016 According to the March 2012 edition of Hotel Horizons®, PKF Hospitality Research, LLC (PKF -HR) forecasts that rooms revenue (RevPAR) for U.S. hotels will rise 5.8% in 2012, the result of a 1.6% increase in occupancy and a 4.1 % gain in average daily room rates (ADR). According to Smith Travel Research (STR), U.S. hotels rented more guest rooms in 2011 than ever before. With occupancy levels expected to exceed the STR long -run average of 61.9% in 2013 and beyond, we are beginning to see operators capitalize on these favorable market conditions and increase room rates. We expect to see average daily room rates increase in excess of 4.0% per year through 2014. U.S. Lodging Forecast Major Indicators Change From Prior Year 20% 0Ax .ex ux 0ax 5Ax 4.rA ax wex a�ax aso�.ax LL WA - aefFr/ YRruna Ottuyenq MR R.0"! udit z.* NW • 1011 Acrual ■ All Z Fomcazl Rate. •eebro detl hams Wca reaerv,rxu,ietererr n,.o,ro ones dapreua4on," emo, on 'Source: U.S. Travel Outlook, Research and Trends, May 2012 hltp: //w .ustravel.org /sites /defaultKles /page /2009 /09 /April2012_public.html 'Source: PFK 19 r ewport i t �t isIN❑ THE IMPORTANCE OF TOURISM Importance of Travel and Tourism to the California Economy • Tourism generated $95.1 billion in spending in California in 2010. This total is up 7.4% from last year.(1) • Eighteen percent of tourism - related dollars in the state in 2010 were attributable to spending by international travelers. (1) • During 2010, travel spending in California directly supported 873,000 jobs, down less than 1 % from 2009, while earnings remained consistent over last year, at $29.9 billion.(1) • Travel spending generated the greatest number of jobs in accommodation and food services (516,000) and arts, entertainment, and recreation (209,000 jobs).(1) • Travel spending in 2010 generated $2.1 billion in local taxes and $4 billion in state taxes.(1) Visitor Volume and Market Share Domestic Travel • There were 199 million person -trips to and through California in 2010, 155 million (78 %) of which were for leisure purposes. These totals are up 9% and 12% respectively from 2009.(2) • Of the 199 million trips, 45.09 million (23 %) originated from outside California. Non resident leisure travel accounted for 33.1 million (73 percent) of trips.(2) U.S. research • California's top out -of -state domestic markets in 2010 were Arizona, Nevada, Texas, Oregon, Washington and New York.(3) • Data reflects a 1.6% increase in the number of domestic travelers who flew to and through California on U.S. carriers during 2010. (7,8,9) • California had the largest market share of domestic travel among all 50 states, with a mark of 11.45% person -trips in 2010. California had an 11.37 percent share of domestic leisure person -trips in 2010.(2) Employment 3 2 1 a _1 -3 % a&NR Feb 11 Jun 11 Oct I1 Feb 12 'Source: Bureau of Labor Statistics 20 T 'eW 'CF �ACMiNr,. . CALIFORNIA TOURISM SUMMARY Travel Activity Room demand in California increased by 4.4 percent from 2010 to 2011, compared to 6.0 percent the preceding year (Smith Travel Research). Visitor air arrivals on domestic flights increased by 1.3 percent from 2010 to 2011, compared to 1.7 percent the preceding year. Tax Revenues The growth in local tax revenues (10.1 percent) was driven by increased lodging tax receipts, due both to room demand and room rates. Travel- generated state tax revenue showed little increase due to the reduction in the sales tax rate. Spending Total direct travel spending in California was $102.3 billion in201 1 (preliminary). Travel spending increased by 7.6% in current dollars compared to 2010. Inflation- adjusted (real dollar) travel spending increased by 2.2% from 2010 to 2011, following a 3.4% increase the preceding year. Price increase in transportation and lodging were the primary sources of inflation in 2011. California research Employment Total travel- generated employment increased by 1.5% during the past year. Employment in the travel - generated portion of the leisure and hospitality section increased by 1.8 %. This is the first substantial increase in employment since 2007. Average weekly hours in the broader leisure and hospitality sector are now almost at the 2007 level.1 Total Overseas Market. Spending by international visitors increased by 7.4% from 2010 -2011 (preliminary). Overseas arrivals to the U.S. increased by 5.8% in 2011, compared to an 11 % increase the prior year. Increase in spending in 2011 is due to favorable exchange rates with respect to the U.S. dollar. 'Source: Dean Runyan Associates, California Travel Impacts by County, April 2012 21 VISI � e�ort LNG. California research 'Source: Tourism Economics. Historical sources: TINS Global (domestic); CIC Research, OTTI (international) Dean Runyan (expenditures) 22 Califomia Tourism (Annual Summary %change) Total Visits -6.7% 6.0% 2.6% 3.5% 2.4% 2.5% 2.3% Domestic Total Visits $.6% 5.8% [2.60%/o 3.2% 2.1% 2.3% 2.0% Leisure Visits -7.0% 5.1% 2.4% 3.5% 2.1% 2.4% 2.1% International Total % change -7.5% 8.1% 2.6% 5.7% 5.2% 4.9% 5.0% Cherseas - 12.8% 16.1% 3.9% 6.4% 5.9% 4.7% 4.8% Mexico -4.1% 1.9% 1.5% 5.2% 4.9% 5.3% 5.5°.''0 Canada 1.9% 10.0% 2.3% 5.6% 4.1% 4.2% 3.2% Leisure % change -1.8% 8.2% 2.3% 5.5% 5.00/0 5.1% 51% Cherseas 0.2% 16.6% 3.6% 6.1% 6.1% 5.4% 5.2% Mexico -0.1% 1.9% 1.2% 4.9% 4.3% 5.1% 5.5% (n- mada 3.3% 10.0% 2.2% 5.4% 4.0% 4.0% 3.1% Total Expenditures ($ billions) 88.5 95.1 101.2 112.8 119.3 124.5 107.1 5.8% % change -9.2% 7.5% 6.4% 5.3% 5.8% 4.4% Domestic 72.7 77.4 82.0 85.9 89.9 94.4 98.1 % change -B.1% 6.4% 5.9% 47% 4.6% 5.1% 3.9% International 15.8 17.7 19.2 21.2 23.0 24.9 26.4 % change - 13.9% 12.3% 8.5% 106% 8.1% 8.4% 6.2% 'Source: Tourism Economics. Historical sources: TINS Global (domestic); CIC Research, OTTI (international) Dean Runyan (expenditures) 22 /(�tt� rort CALIFORNIA TOURISM TRENDS: 2012 TO DATE: Lodging: (Mar YTD) Occupancy Average Daily Rate Revenue per Available Room CA Airport Traffic: (Feb YTD) Domestic International +4% +5% +9% +6% +5% California research Overseas Arrivals: (Feb YTD) CA as First Intended Address Welcome Center Traffic (Ap YTD) Annual Domestic 2009 Leisure (Annual 21MO Trips 'X,change) 21 to I California M3 2014 21 Total -7.0% 4.9% 3.9% 1.5% 1.8% 2.2% 2.3% California -5.2% 6.8% 3.7% 1.5% 1.9% 1.9% 10% Primary Markets - 11.2% 2.3% 4.6% 1.3% 1.9% 3.3% 3.7% Anzona - 11.0% 9.0% 6.0% 1.9% 2.2% 3.1% 3.2% Ne ,mda -16.6% -0.9% 1.4% 0.7% 0.7% 3.2% 4.3% Oregon 0.2% -0.2% 7.6% 0.2% 1.9% 3.7% 3.9% Washington -25.9% -1.1% 5.8% 1.90/0 2.7% 3.6% 3.9% Utah -8.1% -4.9% 0.4% 0.7% 2.1% 3.7% 3.7% Colorado 12.4% 3.8% 5.1% 1.8% 2.3% 3.2% 3.6% Opportunity Markets 6.8% 1.6% 3.5% 1.6% 2.1% 3.0% 3.5% Texas 8.2% 2.0% 4.4% 2.2% 2.7% 3.7% 4.2% New York 15.1% 1.8% 1.2% 1.1% 1.7% 2.4% 3.4% Illinois -4.5% 0.7% 5.1% 1.3% 1.6% 2.5% 2.5% Rest of US -22.9% -8.6% 4.7% 1.4% 1.4% 2.9% 2.8% Source: TourisiriEconorncs- Kstorical sources: TNS Global Note on volatility of historical data and treatment In forecast: ❑:e to smatter sample sizes and relatively smaller visitor volumes in absolute terms, the historical data of origin markets tends to be more volatile than total visitor vo,umes +6% +13% Source SiR, US Dept of Commerce, CA Airports 23 �et��nrf DOMESTIC TRIPS TO CALIFORNIA California research Annual Domestic Leisure (Annual Trips % change) to California Total -7.0% 5.1% 2.4% 3.5% 2.1% 2.4 % 2.1% California -5.2% 6.9% 2.1% 3.6% 1.9% 2.4% 2A% Primary Markets - 11.2% 2.8% 4.2% 3.7% 3.3% 3.2% 2.7% Arizona - 11.0 % 9.2% 2.6% 19% 3.3% 3.2 % 2,1% Nevada -16.6% 0.3% 6,0% 5.0% 4.0% 4.1% 3.5% Oregon 0.2% 0.0% 4.7% 3.5% 2.4% 2.4% 2.5% Washington - 25.9% -1.0% 4.8% 4.2% 15% 2.8% 3.0% Utah -8.1% -3.7% 4.1% 2.7% 19 %0 2 -7% 1.9% Colorado 12.4% 3.4`/0 3.6 % 3.7% 3.5% 3.0 % 2.9% Opportunity Markets 6.8% 1.1% 4.8% 3.6% 3.3% 3.1 % 2.9%0 Texas 8.2% 0.8% 5.9% 4.6% 4.6% 4.0% 4.3% New York 151% 2.1% 3.8% 3.0% 2.4 % 2.4 %n 2.1% Illinois -4.5% 0.2% 4.3% 2.6% 2.2% 2.2% 1.4% Rest of US -22.9% -8.4 %n 2.2% 2.3% 2.2% 1.5% 1.6°fo Source: Tourism Economics Historical sources- THS Global Note on volatility of historical data and treatment in forecast: Due to smaller sample sizes and relatively smaller visitor volumes in absoMe terms, the historical data of origin markets tends to be more volatile than Iota] visitor volumes. 24 3,w ort I. A ( H uvc. CALIFORNIA TOURISM DEMAND Air travel on domestic flights increased by 1.3 % from 2010 to 2011. 33 32 31 30 29 28 27 26 25 24 Domestic Air Passenger Visitor Arrivals at California Airports 00 01 02 03 04 05 06 07 08 09 10 11p California research Room demand increased by 4.4% from 2010 to 2011. Calitornia Room Demand 2010 2011 Q2 Q3 Q4 Source: Dean Runyan Associates, Cal. Travel Impacts by County, May 2012 25 35 2009 33 31 Eb 29 Z 27 ' E 25 o`e 23 °21 c .= 39 17 is Q1 2010 2011 Q2 Q3 Q4 Source: Dean Runyan Associates, Cal. Travel Impacts by County, May 2012 25 VISIT Qt,l,/ )OY1 INTERNATIONAL TRIPS TO CALIFORNIA California research Source Tourism Economcs. listorical sources: CIC Research, OT-n Note on volatility of historical data and treatment in forecast: Due to smaller sample sizes and relatively smaller visitor volumes in absolute terms, the historical data of origin markets tends to be mnre volatile than total visitor volumes_ Annual International Leisure Trips to California .- Total -1.8 % 8.2% 2.3% 5.5 % 5.0% 5.1% 5.14,E China 21.3% 53.1% 15.6% 18.1% 16.10% 15.2% 15.8% India 16.9% 17.2% 11A% 11.8% 8.7% 6.5% 8.1% Japan -19.4% 20.6% -6.8% 3.9% 6.7% 5.5% 5.4% South Korea 16.4% 48.4% 7.1% 6.6% 6.6% 6.3% 5.0% Australia 0.4% 29.0% 3.1% 3.4% 3.1% 2.6% 2.5 %0 United Kingdom -9.0% 1.2% 2.1% 5.4% 4.6% 3.7% 13% Germany -5.2% 9.3% 2.6% 4.2% 4.6% 3.1% 2.9% France 32.4% 27.6% 2.8% 5.8% 4.3% 3.8% 4.4% Scandanavia -2.8% 21.3% 2.6 % 3.9% 4.7% 4.1% 3.6% South America 22.4 % 24.8% 8.1% 8.4% 5.6 % 5.3% 5.5 % Canada 3.3% 10.0% 2.2% 5.4% 4.0 %u 4.0 % 3.1% Mexico -4.1% 1.9% 1.2% 4.9% 4.3% 5.1% 5.5% Rest of World -0.90/0 8.9% 3.8% 5.6% 6.6% 5.9% 53% Source Tourism Economcs. listorical sources: CIC Research, OT-n Note on volatility of historical data and treatment in forecast: Due to smaller sample sizes and relatively smaller visitor volumes in absolute terms, the historical data of origin markets tends to be mnre volatile than total visitor volumes_ CALIFORNIA TOURISM DEMAND International travel to California increased in 2011, representing a spend of $19 billion. 25.0% 2) 0 0 in 15.0% 0 10 -0 90 i a, 5.0% 0.0% 1 International Visitor Spending Amounts in Real 2011 Dollars 01 03 05 07 09 $19.5 $19.0 $18.5 $18.0 $17.5 $17.0 $16.5 11p California research Overseas arrivals at California increased by 10 -6% in 2011- Overseas Arrivals at California Ports of Entry, 2011 5.0 4.5 c 4.0 3.5 M11111111 2.5 r q I - . - . 00 01 02 03 04 05 06 07 08 09 10 11 p Source: Dean Runyan Associates, Cal. Travel Impacts by County, May 2012 27 IT ewAort INC, California research CALIFORNIA HOTEL PERFORMANCE STRONG IN 2011 AND 2012 Visits continued to rebound in the first half of 2011. With strong hotel performance and international arrivals, visits to California are forecast to grow 3.8% in 2011. The hotel sector outperformed the industry as a whole. Room demand grew 5.8% through August, and prices have started to rise from recession levels. This has led RevPar to grow by more than 11 % over the first 8 months of the year. Hotel Performance IN change year ago, Jan -Aug 2011 12 10 C 0 4 2 F. Rooms scald Occupant. ADIR RevPAR Source: STR Global KI s,'lkyUnOr1 INC. PULL SOME GROWTH FORWARD FROM 2012 Visits have rebounded with 5.9% growth in 2010 and with 3.8% growth in 2011. Domestic visits to California grew a revised 5.6% in 2010 and are forecast to grow 3.5% in 2011 With this strong growth, 2011 visits will surpass the pre- recession peak of 2007, a year earlier than previously forecast. As a result, growth is expected to moderate in 2012 as the rebound part or the recovery ends and the economy faces ongoing labor and housing market headwinds. International arrivals, fueled by Asia, will continue to outperform domestic travel over the near term. CA Total Visits annual % gro%mh 20% 15% 10% 5% 0% -5% -10% California research 15% I i I i r I 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Visitor Spending at Destination Source: Tourism Economics, OTTI, GIG Research, TNS I\, SPENDING BY ACCOMMODATION TYPE: $95.3 BILLION CALIFORNIA ACCOMMODATION SPENDING Day Travel: $23.38 Vacation Home: $4.213 Private Home Other California research Hotel, Motel: $51.313 'Source: Dean Runyan Associates, Cal. Travel Impacts by County, April 2012 30 I11] e�port California research TRAVEL SPENDING BY CATEGORY: $95.3 BILLION CALIFORNIA TRAVEL IMPACT Airport Transportation (visitor only): $3.6B Accommodations: Retail Sales: $15.56 $16.5B Art, Entertainment & Recreation: $14.58 Food & Beverage Services: $24.1 B "Source: Dean Runyan Associates, Cal. Travel Impacts by County, April 2012 31 CALIFORNIA TOT BY CITY 160000 140000 120000 100000 0 a�it� 9 California research a \Q' � o a e s �a ma �° r ya ara� Q� 4a 0 a` e �X3a oc c° eaor c� c� �J °r 5z eaor Q� y a a ya c�a ya ■ 2010 ■ 2011 'Source: Dean Runyan Associates, Cal. Travel Impacts by County. April 2012 32 /1""y o 1 t M VISITOR SPENDING BY ORIGIN, 2011 In 2011, about six out of ten dollars spent at California destinations were attributable to residents of other states and countries. California research Internatronal $19.1 Sources: Dean Runyan Associates, Inc., International Trade Administration (U.S. Department of Commerce), Bureau of Economic Analysis (U.S. Department of Commerce). Air Passenger Ongin and Destination Survey (U.S. Department of Transportation), and TNS Travels America visitor survey. 33 s r ewport �Ck -WI A C. H inr. Orange County includes 34 cities, spans 798 square miles and includes 42 miles of scenic coastline. Orange County is known for its ideal year -round climate. Orange County continues to attract a large number of visitors to the area. Throughout 2011, Orange County has undergone, and continuing to undergo, changes that will enhance its offerings to both visitors and residents. Notable projects include renovations at the Disneyland Hotel, as well as new attractions set to open within the next year; recently completed $6 million renovation of the Hyatt Regency Huntington Beach; $25 million renovation of the Hyatt Regency Orange County; the $543.1 million renovation and expansion at John Wayne Airport, plus WestJet airline began new service to /from Canada and Mexico; a $100 million improvement project at Fashion Island and several new and notable shopping experiences. Orange County research Based on the sample set of hotels, the overall Orange County lodging market is estimated to increase 0.2% in annual rooms supply in 2011. The sample set of hotels include the sum of aggregated sub markets, which is approximately 70% of the total existing lodging supply in Orange County. For 2011, room occupancy is expected to increase 3.6 %, translating to market occupancy of 71.5 %. The average daily rate is estimated to show growth of 4.7 %, after two years of consecutive decline. Overall, revenue per available room is estimated to continue to increase, with growth at 8.2% to $86.68. Our 2012 forecast for the overall Orange County market is positive across all econometric indicators. We forecast a 2.6 %increase in occupied rooms, a 4.4% increase in ADR and a 6.6% increase in RevPAR. Market occupancy is expected to reach 73.0% in 2012, which is above the historical range presented in the following table, yet reasonable given the new additions to supply, expansive hotel renovations and new attractions developing in this market. Coastal Orange County Historical Market Performance of the Competitive Supply Average Annual Percent Occupied Percent Markel Daily Percent Percent Year Supply Change Rooms Change Occupancy Rate Change REVPAR Change 2006 1,716,595 N/A 1,195,556 N/A 69.6% $238.88 N/A $166.37 N/A 2007 1,716,595 0.0% 1,214,802 1.6% 70.8 258.85 8.4% 183.19 10.1% 2008 1,729,005 0.7 1,180,274 -2.8 68.3 252.15 -2.6 172.13 -6.0 2009 1,874,275 8.4 1,086,443 -7.9 58.0 220.18 -12.7 127.63 -25.9 2010 1,896,905 1.2 1,222,115 12.5 64.4 221.49 0.6 142.70 11.8 2011 E 1,896,905 0.0 1,321,566 8.1 69.7 234.64 5.9 163.48 14.6 2012 F 1,940,340 2.3 1,374,429 4.0 70.8 244.03 4.0 172.86 5.7 CAAG 1 1.70% 1.70% - 0.30% -0.30% 'Source: PKF Consulting 'Southern California Lodging Forecast 2012" 34 T ewport t� �� F A L 1-1 INC. NEWPORT BEACH RESEARCH Newport Beach is situated in southern Orange County between Huntington Beach to the north and Laguna Beach to the south. The city is approximately 50 miles southeast of Los Angeles and 85 miles north of San Diego. Newport Beach is approximately 40 square miles, of which 22 square miles is water. The city is acclaimed for its beaches, mild year -round weather, boating /yachting community, sophisticated atmosphere, international film festival, three annual epicurean festivals, and the oldest holiday boat parade in the nation. Nine district neighborhoods make up Newport Beach. They are: Balboa Island and surrounding islands, Balboa Peninsula, Corona del Mar, Mariner's Mile, Cannery Village, Back Bay, Airport/Business District, Fashion Island, and Newport Business, and Coast/Crystal Cove. Newport Beach is a leisure destination area and relies heavily upon retail and leisure expenditures. The community is home to 17 full- service resorts, hotels, boutique hotels and inns, accounting for more than 2,900 hotel rooms and 17,000 square feet of meeting space under a variety of branded and independent hotel flags. There are more than 300 restaurants in Newport Beach. Development consists primarily of restaurants and other commercial uses including a concentration of marine - oriented businesses. Newport Beach research In addition, Newport Beach is a well -known shopping destination consisting of Fashion Island, an outdoor Mecca filled with over 200 specialty shops and chic boutiques, as well as quaint retail storefronts along Pacific Coast Highway. Since 2010, the Newport Beach submarket, with no new additions to supply, has experienced strong growth across all three econometric indicators. In 2011, continuing the growth from 2010, we expect the submarket to end the year at 71.5% occupancy; representing a 9.1 % growth in occupied rooms. Furthermore, we expect average daily rate to grow by 8.7% to $192.17. Combined, revenue per available room is expected to reach $137.43, or 18.6% growth over the prior year. For 2012, we forecast the number of occupied rooms to increase by 3 %, resulting in a market occupancy rate of 73.7 %. We expect the market to stabilize at or near this rate and, while this rate is above historical levels, we find this estimate to be reasonable given the strength of the high -end coastal market and demand for lodging of this type. Average daily rate is estimated to grow by 5% to $201.78. Revenue per available room is estimated to increase by 8.2% to $148.63. 'Source: PKF Consulting "Southern California Lodging Forecast 2012" 35 T ewport �F A C H mc. Newport Beach research NEWPORT BEACH HISTORICAL MARKET PERFORMANCE OF THE COMPETITIVE SUPPLY Annual Percent Occupied Percent Market Average Percent Percent Year Supply Change Rooms Change Occupancy Daily Rate Change REVPAR Change 2006 874,540 N/A 584,454 N/A 66.8% $178.46 N/A $119.26 N/A 2007 889,140 1.7% 608,942 4.2% 68.5 201.10 12.7% 137.73 15.5% 2008 901,550 1.4 599,856 -1.5 66.5 189.90 -5.6 126.35 -8.3 2009 1,010,320 12.1 599,137 -0.1 59.3 165.13 -13.0 97.92 -22.5 2010 1,010,320 0.0 662,213 10.5 65.5 176.83 7.1 115.90 18.4 2011 E 1,010,320 0.0 722,528 9.1 71.5 192.17 8.7 137.43 18.6 2012 F 1,010,320 0.0 744,204 3.0 73.7 201.78 5.0 148.63 8.2 CAAG 2.4% 4.1% 2.1% 3.7% NEWPORT BEACH TOP U.S. & INTERNATIONAL MARKETS . _ r , esr. en_- - Iffl-R16SIdent 2011 2007 2011 ;b07 Market Share Market Share Market Share Market Share California 63.2% California 61.7% Europe Western 37.0% Canada - Eastern 22.6% Utah 7.4% Arizona 7.0% Canada - Western 26.8% Canada - Western 21.5% Arizona 3.2% Utah 5.8% Asia 12.8% Mexico 18.9% Nevada 3.0% Colorado 2.5% Middle East 4.0% Europe 16.5% Connecticut 2.5% Nevada 2.5% Canada - Easter 3.2% Asia 5.0% Texas 1.9% Texas 1.8% Australia /New Zealand 3.0% Central America 2.4% Source: PKF Consulting Source: Horizon Consumer Science - Visitor Profile and Economic & Fiscal Impacts of Tourism In Newport Beach for FY 2010/2011 K11 ewport ti �� C A CHunt. NEWPORT BEACH VISITOR PROFILE • 6.6 million people visited Newport Beach in 2011. • 57 %of Newport Beach visitors are California residents; 33% are U.S. residents and 10% reside in other countries. • 62% of visitors have visited Newport Beach in the past three years and 38% are first -time visitors. • 56% of visitors named Newport Beach as their primary destination; 44% named other areas as their primary destination. • 75% of visitors named "Vacation" as their primary purpose to visit Newport Beach. • Average Age: 38.8 • Average Annual Household Income: $123,400 • Household composition — 60% married, 30% single • 69% of visitors arrived in a personal vehicle, 31 % via airline • Total Visitors Spending $971.3 million • 88.32% were day visitors; 7.32% stayed in a hotel/ motel; 4.36% stayed a in Private home /other • 92% were either "Extremely" or "Very Satisfied" with Newport Beach as a destination • The main reasons for satisfaction included: good /great Beaches, Great Weather /Climate, Many Things to See and Do. Top 5 Activities in Newport Beach 1. Restaurants 2. Sightseeing/ exploring the area 3. Go to the Beach 4. Go Shopping 5. Just visit/ socialize Newport Beach research Overall, 49% of visitors were staying overnight somewhere on this trip; 51 % were solely on a day visit. Of all visitors, 12% stayed overnight in Newport Beach Overnight visitors reported the number of nights they stayed in Newport Beach, other Orange County areas, other areas and overall on this trip. • Overall, visitors who spent the night anywhere took trips that lasted 7.1 (6.0) nights on average. • Newport Beach overnight guests stayed an average of 3.7 (4.1) nights. • International visitors each stayed about 3.6 (4.6) nights, Other U.S. visitors stayed an average of 4.6 (4.6) nights, • Californians averaged 2.5 (3.5) nights. Hotel guests averaged 3.3 (3.4) nights, while other lodging guests averaged 4.4 (4.9) nights. Thus, while overall trip length rose by about one night, length of stay in Newport Beach declined by .5 -1 night from 2007 across most segments . Those who did not stay overnight in Newport Beach indicated their reasons as follows: 33% were passing through to another destination, 17% were staying with friends /family, especially other U.S. residents (28 %) and visitors who arrived by air (36 %), while 9% stayed in a hotel elsewhere. Source: Horizon Consumer Science- Visitor Profile and Economic & Fiscal Impacts of Tourism in Newport Beach for FY 2010/2011 37 his 11 ewport OVERALL VISITOR SPENDING BY CATEGORY 2011 Newport Beach research Spending Category 2011 Daily Per_ Person 1 Total Amount Ratio Shopping /gifts $ 29.9 $ 261,530,000 26.9% Meals Out 29.81 260,460,00 26.80/ Lodging 18.83 164,520,00 16.90/ Local Transportation (ind. gas) 5.71 49,910,000 5.1°/ Admissions: attractions /dubs/ museum/ theater, etc. 10.41 90,940,000 9.401 Activities 3.12 27,270,000 2.80/ Groceries /incidentals 6.4 56,130,000 5.8% Beverages 5.54 48,450,00 5.00/ Amenities/ health spa 1.3 12,070,000 1.20/ Total. 111.1 $ 971,280,00 100.00/ Source: Horizon Consumer Science - Visitor Profile and Economic 8 Fiscal Impacts of Tourism in Newport Beach for FY 2010/2011 38 Alc�lly )ort TAXES GENERATED TO CITY OF NEWPORT BEACH FROM VISITOR DIRECT SPENDING Newport Beach research I .: excludes another $1.47 million in TBID funds for FY 2011 Source: Horizon Consumer Science - Visitor Profile and Economic & Fiscal Impacts of Tourism in Newport Beach for FY 2010/2011 —klo� Taxable Spending (i.e., sales subject to Newport Beach City Taxable Category tax) Tax Revenues* Ratio -5h10ppingtmft§� --- $ 11.911A .............. . . Lod . .................. �4 89,300 .... L§ . . ............................... . . . ................ 72.7% - Meals - - ------------------- - - - - - --------- ------------- --- - - - - - ----- $ -- -- -- - - ---21 9r 335-000 - - - - --- $ 1- O 41�JVO ---- - 0 .....1.. .0......9.... 0 /. . Beverages -------------------------------------- $ ---------- 49 800000 --------- - - - - -- 408,000 -- - - 2.0°/ , Dail Transppqj ........... .-E!jg .. _ f�q!Eki _ ...... . . . . . ....... . $ . .... .. .... ......... --------- I ........ 500 ------------ 1.10/0 ...... — ................ --------- -1.1 °/ Activities - .................. I ......... 1--.......'...... . .................. . . . . ...... .. I .. .... - ............... 0.0% ......... -'-- ........ M us.Thea.ter/Admissions . .......... .. ......... . . . .............. ................. . . . . ....... . ............ 4 . . .. ... . . . . . .................. ..... . .. ... . ............. . . . . . ................ ----- 0.0% - - -- ...................... Amenities/Health . . ................... ------------- $ ---- - - 775,000.- --- - -•- -- _$ ..... 27800 -------------- Z -------------------------- -- o -- - - ----- ._._..---------- 0:.1 °1 Groc./Incidentals 25,807,000 $ 258f 100 1.3% Total 2011 699,044,000 $ 20,211,000 100.007 0 Total 2007 $ 692,258,000 $ 17,786,900 100.6pl- I .: excludes another $1.47 million in TBID funds for FY 2011 Source: Horizon Consumer Science - Visitor Profile and Economic & Fiscal Impacts of Tourism in Newport Beach for FY 2010/2011 —klo� ewport IS�L A (. It INC. DAY - TRIPPER ANALYSIS — SUPPLEMENT June - August 2010 Report This report provides trend information pertaining exclusively to Day- tripper visitor populations, drawing insights from their spending patterns and profiles Day- Tripper Analysis Overview • A Cardmember (CM) is someone who carries an American Express card and has used it to perform transactions with your business within the current period. • A "transaction" represents one record of charge between a Cardmember and your business. "Spend" represents the total dollar amount of the transaction(s). • A "Day- Tripper" is defined as someone who transacted in the Newport Beach area, but did not have an overnight stay. This may include a single individual or a group of people on whose behalf an individual is spending. • The Newport Beach area was defined using the following zip codes: 93663, 92660, 92662, 92661, 92657, 92658, and 92659. • This report reflects June to August 2010. Unless otherwise noted, all data in this report is for this period. Key Findings The number of day- trippers during the current period was 111,153. The total amount of spend during the current period was $41,860,369. The average transaction size during the current period was $131.49. Newport Beach research CONCLUSIONS AND RECOMMENDATIONS Conclusions During the months of June to August 2010, Newport Beach saw more than 111 k Day - Trippers, who contributed more than $41 million in spend for a 100 -mile radius. The key codes are broken out by proximity, the largest groups being the 0 -10 mile distance, followed by the 11 -20 and 41 -50 mile distance . Proximity Day- Trippers Total Spend 50 -60 4,916 $1,360,616 60 -70 3,322 $930,602 70 -80 2,058 $1,202,099 80 -90 2,558 $685,404 90 -100 1,162 245,714 The key industries that saw the largest impact by Day- Trippers was retail, restaurants, health care, motor vehicle expenditures and professional services. Use these key industries to generate packages to attract more Day - Trippers and to make them contribute to more spending. Recommendations Visit Newport Beach, Inc. should look to market, it's retail and restaurants, offering to the key zip codes that represents the largest number and highest spending Day- Trippers. Promoting key industry options through various marketing initiatives, such as retail trips/charters Newport's vast retail options, or coupling restaurants and entertainment promotions such as a date night, during both peak and off - peak periods will enable Visit Newport Beach to capture day - trippers spend, even though they are not staying overnight. - Source American Express Business Insights 39 ewport rs� %r r n c. n „c NEWPORT BEACH INFRASTRUCTURE Fashion Island celebrated its 45th anniversary in Newport Beach this year. Fashion Island completed its $100 million makeover and a myriad of recent and upcoming store and restaurant openings. Restaurants that have debuted include Native Foods Cafe, Great Maple and True Food Kitchen. Upcoming restaurants include New York -based Fig & Olive; 'lette, a Beverly Hills purveyor of handmade macaroons, and Whole Foods Market, the high -end grocery chain. The theaters at Fashion Island, Island Cinema, were upgraded to create a high -end movie -going experience, including leather seats with more leg room; a menu that includes sparkling wine, artisanal sandwiches and hand scooped ice cream; and concierge for assistance in dinner reservations. Calling it the continuation of a renaissance, Fashion Island management announced that it would add 22,000 square feet of retail space over the next year and a half and bring exclusive or unique tenants to Orange County. With the inclusion of new tenants, the shopping center will be more than 90% occupied. Hyatt Regency Newport has completed its $2 million renovation of the lobby, front desk and lobby lounge. The renovated lobby of the Hyatt Regency is quintessential California beach chic. The immediate impression upon entering the lobby is one of calm, fresh, and casual elegance. Greeted at the new reception, guests will check - in at approachable front -desk 'pods' intimately suitable to Newport Beach research the casualness and informality of a beach residence and providing adequate transaction space for guests juggling tasks upon check -in. The versatile indoor /outdoor meeting space just received a $2.3 million face lift! The modern circular pattern mirrors ocean bubbles and will be a reminder of the nearby ocean. Newport Beach Civic Center & Park Project includes a City Hall building, one of the city's largest parks, a 450 -space parking structure and an expansion of the Newport Beach Central Library. The project is scheduled to be completed by the end of 2012, and the current cost estimate for all project components is $128 million. Disneyland Resort's California Adventure features a new attraction in called "Cars Land ". The 12 -acre land encompasses three new rides and a Main Street that looks like Radiator Springs from Disney Pixar's Cars movies. John Wayne Airport has recently expanded Terminal C 300,000 square feet. The terminal also includes a new international arrivals area, which allowed JWA to expand its international destinations to Cabo San Lucas and Mexico City beginning June, 2012. JWA also added new several new dining and shopping options. 'Source: Orange County Register, Hyatt Regency Newport Beach, City of Newport Beach, Disneyland and John Wayne Airport M1 T ewport ING INDUSTRY TRENDS — U.S. TRAVEL OUTLOOK Personal spending rose by a greater- than - expected 0.8 %in February The largest monthly rise since July 2011, according to the U.S. Department of Commerce, caused leading economists to raise forecasts for first - quarter growth. Consumer Confidence Slowly Improving The steady, strong job growth over the past several months (at least until March), helped to lift consumer confidence but not consistently each month. Employment and Consumer Confidence 75 Consumer 70 "onf,"rimil-, 65 60 d0 Total Engloyrnent. monthy % change (R) 1119 travel trends The overall U.S. Traveler Sentiment Index TM (TSI) soared 10% in February 2012, as perceptions of travel across all six factors from which the index is derived exhibited substantial improvement from last quarter. According to the most recent MMGY Global/U.S. Travel Association travelhodzonsTM survey, the overall TSI now stands at 93.6, up from 85 in October 2011. U.S. Traveler Sentiment Index (TSI) "Money available for travel" experienced a gain of 20% and C 2 "affordability of travel' rose 8 %, suggesting that consumers are increasingly more positive about their ability to afford travel. 1 ao 35 A.1 Met III Jun 11 Sep 11 Dec ii Mar 12 Source. Bureau of Labor Statistics. Conference Board Leisure travel intentions have changed. • According to the travelhorizonsTM survey, 56% of U.S. adults intended to take at least one trip primarily for leisure purposes between February and July 2012. • One quarter of all adults, or 59 million, are not planning to travel for leisure purposes during the next six months. The remaining 44 million adults, however, have yet to decide whether or not to take a leisure trip. This statistic represents a significant market opportunity for destinations and other travel- service suppliers to convert this 'latent' demand and indicates that aggressive marketers will likely be rewarded for their proactive business development efforts. 41 e�'ort INC. Lodging Performance 12 10 8 8 4 Source: 3mrth Travel Research Transportation 12 1h AlrPassenper [nplanerntnts c 2 Q _2 _.# .y %arse Feb 11 .tun 1 f Oct 11 Source Air Transport Association, Amtrak, Federal Flighwaq Adrrcnistration Feb 12 travel trends RevPAK 'Y f [) Charigeb Febrw� ry 2012 Source: Srmth Travel Research http: //w . ustravel.org/sitw /default/files/ page ./2009 /09/Aon12012-public.html 42 4* ew ort 4FAC ft 8 LUXURY TRAVEL TRENDS FOR SUMMER 2012 Multigenerational Family Travel: • "Families as small as six as and as many as 35 are taking advantage of the all- inclusive, elegant, destination - focused, hassle -free cruises," states Mark Conroy, President of Regent Seven Seas Cruises. • Hotels are seeing the same trend of larger family groups traveling together. Emily Snyder, Vice President of Sales & Marketing for the Americas with Mandarin Oriental, says they are "seeing increased lengths of stay and multiple - room bookings to accommodate multigenerational travel. " • High -end villa rentals are also a popular choice for families celebrating big anniversaries or birthdays. Active Vacations: • Luxury travelers are seeking out ways to stay active and healthy on the road, carving out time for bike rides, hiking and water sports. • Small says that clients "want to go to places where they have plenty of options to take day trips and enjoy active excursions from trekking and diving in Vietnam to fly fishing and whitewater rafting in Park City, Utah, and Colorado." Bespoke Itineraries With a Sense of Place:: • Travel should be personalized. That's nothing newsworthy. • Blend experiences that are tailored to personal desires along with truly special options that reflect the destination. Seeking. Out What's Next and New: • "Clients are asking us to book them to places they haven't been before," says Stacy Small Increase In. Brazil & China Travelers to United States: • U.S. Travel & Tourism's new Brand USA Campaign is a key factor in helping to drive international tourism, particularly from Brazil and China. travel trends Emily Snyder says they're taking extra care of these guests and says that "mainland Chinese guests, for example, receive tailored amenities to enhance their comfort, such as tea kettles in room and special Chinese menu items." Domestic Getaways: • Given the high cost of fuel and airfares, which doesn't seem to be letting up, Stacy Small has seen a number of luxury travelers look at domestic vacations. • "A trip up the California coast is perfect for couples, as well as families who want to spend quality time together and enjoy a mix of luxury hotels and activities without having to fly internationally for the experience," Small says. • California is popular for Fairmont Hotels & Resorts too. As Jennifer Fox notes, "We are fortunate to manage hotels in Orange County /Newport Beach, Hawaii, San Francisco and Sonoma that are extremely buoyant in terms of leisure demand." Value -Added Offers: • In the summer, guests want more value -added offers for the entire family, says Mark Ferland, Area Vice President, Southeast U.S. Caribbean & Latin America for Ritz - Carlton. • Paying in full in advance to take advantage of a reduced rate is extremely popular. • Ferland also notes that the Ritz Kids Meal program "pairs convenience and affordability and is a wonderful perk for families because children are able to enjoy specialty food items tailored to their taste." Each hotel also has a Ritz Kids program with half- or full -day activities for children, like the Kids Sailing & Windsurfing camp at the Ritz - Carlton, St. Thomas. Cooking & Culinary Programs: A cooking class can reflect the spirit of a place that you can recreate yourself when you get home. And hotels are seeing high demand for more and varied programs. Guests seek out new ideas in food and wine. ' Source: Forbes.com 43 _ T ew,00rt 41z A C H is c TRIP ADVISOR ANNOUNCES 2012 TRAVEL TRENDS FORECAST • Despite the current economic climate, 31 % anticipate they will spend more on leisure travel next year, while 49% expect to spend the same amount as they did in 2011. • 79% of respondents plan to spend a minimum of $3,000 on vacations in the coming year, 57% will pay out at least $5,000 and 21 % will invest $10,000 or more on 2012 leisure travel. • 90% of respondents are planning to take two or more leisure trips next year, and 24 %are planning five or more getaways. • Top Vacation Choices: • Beach trip - 44% • Cultural trip - 42% (e.g., museums or historic sites) • Road trip - 40% • City trip - 36% • Guys or girlfriends getaway — 24% • The top three U.S. cities for 2012 are New York City, Las Vegas and San Francisco. • 68% of U.S. travelers are planning international trips. • Consumer confidence on the rise.* • Personal finances available for travel are up year over year.* • Traveler sentiment is near a five -year high.* • Mobile browsing of international travel sites is up 75% over the last 6 months.* • Shorter booking windows.` travel trends MOBILE DEVICES: A "GO TO" TRAVEL RESOURCE IN 2012 • 44% of U.S. travelers plan on using their mobile phone or smartphone more as a travel resource during trips in 2012. • 47% expect to use their mobile device for their travel needs at their destination. • 37% will use a mobile device for restaurants research, 27% will use one for attractions research and 26% will use one for accommodations research. • 31 % plan to use travel apps on their mobile device or smartphone in 2012. • 16% plan to use travel apps on their tablet devices. TOP ECO- FRIENDLY TRAVEL ACTIONS FOR 2012 • Participating in a hotel's linen or towel re -use program - 71 % • Switching off the air conditioning or heat when leaving the hotel room - 51 % • Selecting a hotel specifically for its "green" or environmentally - conscious credentials - 12% LODGING BAROMETER: TRAVELERS' ACCOMMODATION PICKS FOR 2012 Stayed in 2011 Going Up: Vacation Rentals 35% B &Bs /Inns 24% All- Inclusive Resorts 16% Going Down: Hotels 87% Staying with Friends /Family 45% Planning to stay in 2012 36% 26% 18% 83% 43% Source: TripAdvisoccom 'Conference Board, MMGY, Nucleus, TNS 44 VISIT ew ort �{ A C 1 -1 INC. LEISURE AND SUMMER TRAVEL • With airfares to Europe climbing, Americans seem to be even more interested than usual in traveling domestically this summer, according to Kayak. Online searches in January for U.S. destinations on the metasearch engine have risen by as much as 22 %. • TripAdvisor travelers found an increasing interest in rental properties, with 46% of respondents planning a rental -home stay this year. • Travelers are increasingly building their trips around festivals. • There is also increasing interest in hiking tours and outdoor, active vacations and expedition -type holidays. FAMILY TRAVEL TOP ACTIVITIES travel trends THE 2011 VIRTUOSO@ LUXE REPORT (An annual survey of Virtuoso's 6,000- member travel advisors in the United States and Canada) MOTIVATION: WHAT INSPIRES THE AFFLUENT TO TRAVEL, AND WHAT FACTORS GO INTO THEIR DECISIONS? What are the top reasons your clients are traveling in 2011? • Seeking authentic experiences in new destinations (75 %) • Rest and relaxation (68 %) • Spending time with or reconnecting with loved ones (48 %) • Personal enrichment (43 %) • Discovering new experiences in previously visited destinations (tied — 24 %) • Seeking adventure (tied — 24 %) What are the five biggest travel trends you're observing for 2011? Activity Total CA Family Primary Western Long Haul . Family and multi - generational travel (63 %) Beaches 22% 37.5% 41.5% . Luxury cruises (41.3 %) Theme Park 21.5% 45.6% 41.1% • Active or adventure trips (33.2 %) Parks /Nature 19.1% 23.1% 40.8% . Guided or private touring (22.1 %) Shopping 16.2% 22.8% 31.1% . Beach resort stays (19.2 %) Zoo/Wildlife 15.4% 20.5% 23.3% Museums/ What are the factors your clients consider when Historic Sites 13.7% 16.5% 36.9% choosing a vacation in 2011? • The destination (93 %) • Value for money paid (79 %) • Once -in -a- lifetime experiences (57 %) • The activities available (33 %) • Price (23 %) 45 _ 1 ewport MOTIVATION: WHAT INSPIRES THE AFFLUENT TO TRAVEL AND WHAT FACTORS GO INTO THEIR DECISIONS? What are the 10 most influential sources of information for your clients' travel decisions? 1. Travel consultant's advice (84.5 %) 2. Word -of -mouth from friends or family (74.4 %) 3. Travel publications (34.3 %) 4. Travel web sites (28 %) 5. Travel programs on television (15 %) 6. Direct mail travel offers (12.1 %) 7. E -mail travel offers (10.6 %) 8. Lifestyle publications (9.7 %) 9. Social networking sites (7.7 %) 10. Print advertisements (3.4 %) SPECIAL REQUESTS: WHAT CLIENT REQUESTS KEEP VIRTUOSO ON THEIR TOES? What is the most surprising thing your clients are asking you to book for their vacations? • Family trips with infants and toddlers. Clients want their bambinos traveling early! • Unique, hands -on experiences that inspire a personal connection and will build lasting memories: cooking classes; staying in African villages to become part of the culture and community; visiting local schools. • Villa and apartment rentals for family and friends. • Private jets for large family groups. • Adventure activities in multiple destinations during the trip, even for families, such as zip- lining, hiking and bone fishing. What is the most unconventional destination request for family travel? • African safaris • Antarctica • Madagascar • Hiking in unusual destinations such as Nepal, • Bhutan, North Korea, Libya, Lebanon/Syria, and Cyprus • Round - the -world trips travel trends HOW ARE THEY TRAVELING: HOW MANY TRIPS AND WITH WHOM ARE THE AFFLUENT TRAVELING? Who are your clients most frequent travel companions on leisure trips? • Spouse /Partner (94 %) • Immediate family (74 %) • Friends (52 %) • Extended family (17 %) • One their own /Solo (9 %) How many leisure trips do you estimate an average client will book in 2011? • Two (53 %) • One (19 %) • Three (18 %) • Four (7 %) • Five (2 %) What is the most popular type of leisure trip your clients are booking for 2011? • International trips, 8 days or longer (57 %) • International trips, 6 -7 days (18 %) • Domestic trips, 6 -7 days (11 %) • Domestic trips, 3 -5 days (5 %) • Weekend getaways to fly -to destinations (4 %) • International trips, 3 -5 days (3 %) • Domestic trips, 8 days or longer / Weekend getaways to drive -to destinations (tied - 1 %) How far in advance are your clients booking their domestic leisure travel? • One to three months prior to the trip (64 %) • Four to six months prior to the trip (22 %) • Less than 30 days prior to the trip (12 %) • Seven to 12 months prior to the trip (2 %) How far in advance are your clients booking their international leisure travel? • Four to six months prior to the trip (53 %) • Seven to 12 months prior to the trip (29 %) • One to three months prior to the trip (16 %) • More than one year prior to the trip (2 %) • Less than 30 days prior to the trip (1 %) 46 s wwort P TRAVEL PREDICTIONS Google and Facebook Continue to Flex Their Travel Muscles After months of teeth gnashing from worried rivals, Google's flight search engine had its coming -out party last fall. While its features remain more limited than those of competitors such as Kayak and Hipmunk (only domestic flights, for starters), " Google has shown it intends to be a market maker. It will continue to evolve what they have and come up with new travel tools in 2012, and a lot of that will be mobile," says travel analyst Henry Harteveldt at Atmosphere Research Group. Facebook, meanwhile, is on track to reach 1 billion users worldwide, and a stampede of travel- centric web and mobile apps are trying to leverage that popularity for their own social media purposes. Whether they'll succeed is another question: "The (social media) challenge for travel companies is to give people a compelling reason to engage with them and realize that we're not friending them because we like them, but out of greed," says Harteveldt. Same -Night Hotel Booking Take Off Hoping to target bargain- hunting, smart phone - wielding travelers — and tapping into a buy -now trend enabled by better, location -based technology — more hotels and online agencies are beefing up their tonight -only deals. Priceline, Orbitz and Hotel Tonight are among those that have launched or broadened same -night offerings recently. And with an average 40% of hotel rooms going empty each night, expect even more in 2012. travel trends Vacation Rentals Go Mainstream Already popular with DIY travelers looking for lodging bargains and second -home owners trying to recoup some of their real estate losses, vacation rentals will be a bigger focus for such major online agencies as Expedia and Priceline, predicts travel technology columnist Dennis Schaal. And, in the wake of last summer's well - publicized tale of a botched San Francisco rental arranged through Airbnb.com, expect a greater emphasis on safeguards for both hosts and guests. Airline Passengers Keep Singing the "Middle Seat Blues" But Will Have a Clearer Idea of What They're Paying In an era of contraction and mergers, empty airplane middle seats "are so last decade," notes Farecompare.com's Rick Seaney. Yet while travelers will likely see fewer flights to smaller cities and an even tighter time frame for nabbing those elusive bargain fares, the government wants to help them skip the "sticker shock" of being tantalized by a low price only to discover that extra fees and taxes add 20% or more to the final cost. A U.S. Transportation Department rule that took effect Jan. 26 will requires airlines to include all government taxes and fees in their advertised fares. Other provisions, which let passengers hold or cancel reservations within 24 hours and which bar post - purchase price increases, kicked in Jan. 24. 47 r ewport [� e� �ncH,�G SOCIAL MEDIA & MOBILE TRENDS • New technology, mobile apps and social media are improving the travel experience in practical ways as more business travelers stay connected through their wireless devices and new apps come onto the market. • The use of smart phones, tablets and other Internet - connected devices has risen dramatically over the past few years: a recent survey by PhoCusWright and Rearden Commerce, 19 showed that 84% of business travelers used smart phones for business purposes while traveling. • Naturally travelers want to make the most of the available services and in particular the abundance of apps created specifically for them (as an indication, more than 40,000 travel apps are available in the Apple App Store alone). • To promote traveler compliance while enhancing the traveler experience, companies are increasingly deploying dedicated travel management apps, especially for itinerary management and destination information. • According to a CWT survey, 20% of business travelers particularly value itinerary information, flight status updates and electronic boarding passes among the available mobile services, which may be delivered by SMS or app. • For travel managers, the focus in 2012 will be on offering mobile services that not only facilitate logistics for travelers but also improve their experience at every step of the way, from making compliant bookings and accessing an up -to -date itinerary to receiving security alerts and being able to easily share feedback. travel trends • In 2012, the mobile web will also continue driving the use of social media. According to Nielsen, 21 60% of apps used by smart phone owners are related to social networking. With close to 1 billion Facebook users and 10 million Twitter followers, 22 social media will inevitably continue to penetrate the business travel world. CWT research dating from the beginning of 2011 shows that at least 17% of travelers in a sample of companies were already using social media for business travel — and more than a third in most cases. The reasons cited were to look for /share information, network, receive feedback, get market intelligence and communicate with suppliers. Source: Travel Management Priorities for 2012 Value in social media and mobile applications Rearden Commerce website (November 2011) Business TmvelerS&, ices: Finding the Right Fit, CWTTravel Managemem Institute (2011) no vl,lr /G'l11 ort rf i �. I INC. TRENDS & INSIGHTS: ALL ABOUT MOBILE FOR 2012 TRAVEL by Kara Jenkins Google predicts that "the number of mobile users researching travel is expected to grow 51 % in 2012 and "34% of all U.S. smart phone users will research (about travel) from their mobile device" in 2012. Suggestions for the travel industry include: • Create a larger presence on social media sites. • Travel companies need to create different applications for all the platforms that consumers may access travel information through. • Consumers are using several different platforms to research about travel. Thus, travel companies should create applications specific to the formatting rules and requirements of each platform. • Even as the economy continues to be unpredictable, consumers are still spending money on vacations — They are just changing how this money is spent. Thus, travel companies must offer these consumers the deals that they are craving as conveniently as possible through the mobile devices of their preference. travel trends TYPES OF PLATFORMS USED BY CONSUMERS Pod 4% Other 2% Android 19% Phone 29% Pad 42% BlackBerry 4% Source: Trends & Insights: All About Mobile for 2012 Travel I Luminosi hitp:HluminasityTnarketing.com/blog/?p=5920 Em ewAort j / I F,:, US TRAVELERS: % WHO INTEND TO TRAVEL TO KEY STATES IN NEXT 12 MONTHS 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 1 US Travelers: % Who Intend to Travel to California in Next 12 Months, by Geography travel trends Florida California -- New York — Nevada —Texas — Colorado Arizona Hawaii Washington Oregon Utah Projected Spring Fall Jan Feb Mar May Aug Oct Mar May Dec Apr Feb Travel 108 108 109 109 109 109 109 109 c .a LL 110 111 m C O 50% r�o `�i C a LL US Travelers: % Who Intend to Travel to California in Next 12 Months, by Geography travel trends Florida California -- New York — Nevada —Texas — Colorado Arizona Hawaii Washington Oregon Utah Projected Spring Fall Jan Feb Mar May Aug Oct Mar May Dec Apr Feb Travel 108 108 109 109 109 109 109 109 110 110 110 111 '12 Primary 50% 45% 48% 49% 500,6 52% 47% 47% 55% 51% 4946 4006 45% National 1806 2006 20% 23% 2946 21% 24% 21% 21% 28% 24% 18% 23% In -State 790A 71% 74% 75% 82% 7806 7706 72% 90% 81% 75% 74% 73% Note: Primary refers to residents of CA's 6 primary markets (AZ, NV, WA, OR, CO, UT). National refers to non -CA, non - primary market residents, and In -State refers to CA residents. l fe, V1S1T ewport 4g-� I l II INC. YTD Domestic: +6.3% International: +5.3% travel trends Regional CA Occupancy Yr /Yr Chg: March 2012 Regional CA ADR Yr /Yr Chg: March 2012 12.096 - - . _. 12.0% ■ OC 10.096 10.0% LA Riverside 8.0% - 8.0% - — SD 60% 60% - ■Sacramento Oakland 4.0% 4.0% Ill ■ SJ 2.096 2.0% ■ CA South /Central 0.0% I■ 0.0% © CA North ■ CA North Coast -2.0% -2.0% ■ CA Central Coast CALIFORNIA AIRPORT TRAFFIC YEAR OVER YEAR CHANGE: LAST 12 MONTHS 10.0% 8.0% 6.00,/'0 4.00% 2.0010 0.0 °% -2.0°% ■ Domestic F M A M J J A S 0 N D J F 51 CWporl G / IN'. travel trends 250% 20.0% YTD 15.0% -0.67o 10.0% — - 0.0% -5.0% 1 F M A M 1 J A S 0 N D 1 CALIFORNIA WELCOME CENTERS: VOLUME AND YEAR OVER YEAR CHANGE 250,000 YTD 200,000 150,000 i / 111 1 111 _ Total Visitors —% Change 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.OS6 -10.0% -15.0% 0 -20.0% 1't '�� ;tit by titi tit ,y'L ti'1 .tit 1ti �y titi Sti �a� ,mac ,J� P�.p� �eQ C� �o� O�c lac Note: Total volume is for all open California Welcome Centers; adjusted change is yr /yr comparison of only CWC's open both this and last year. Sources: CA airports, US Dept. of Commerce, Google Analytics, California Welcome Centers. 52 vICIT e ort RECOVERY SPURS AMERICANS TO RESUME TOURISM Sales, % change yr ago 30 ; - -- - -- -- - - -- - - —. - 20 10 0 -10 -20 -30 Food services 07 08 09 Sources BEA, Census Bureau CONSUMER TRENDS • Consumer confidence on the rise • Personal finances available for travel are up year over year • Traveler sentiment near five -year high • Mobile browsing of international travel sites up to 75% over last 6 months • Shorter booking windows 10 11 travel trends 53 eport INTERNATIONAL MARKETS 1,800,000 1,600,000 1,400,000 1,200,000 S 1,000,000 800,000 600,000 400,000 200,000 0 Projected 2011 Visitor Volume and Spend in California . Lead . Mature Emerging . Secondary acaaa J� t�a\\a laQac c'e¢ c.° S ¢a 5 CALIFORNIA TRAVEL IMPACTS, 2011(P) • Total direct spending $102.3 Billion • Tourism - supported jobs 893,000 • Local tax receipts $2.3 Billion • State tax receipts $4.4 Billion travel trends $1,600.0 $1,400.0 $1,200.0 $1,000.0 $800.0 $600.0 5400.0 $200.0 $0.0 'Source Visit California Source Tourism Economic, Dean Runyan Associates 54 ew ort .°� rACfrr. 2012 OUTLOOK • Volume • Spending +2% +4.8% CALIFORNIA TOURISM TRENDS — 2012 TO DATE Lodging (Mar -YTD) • Occupancy +4% • Average Daily Rate +5% • Revenue per Available Room +9% CA Airport Traff ic (Feb -YTD) • Domestic +6% • International +5% Overseas Arrivals (Feb -YTD) • CA as First Intended Address +6% Welcome Center Traff ic (Apr -YTD) +13% travel trends VISITOR VOLUME AND MARKET SHARE 2011 Preliminary International Travel • 6.2 million overseas travelers visited California in 2011, a 22.3% share of all overseas travel to the U.S. Those overseas visitors spent approximately $12.6 billion in the state. (9) • California's top overseas visitor markets in 2011 were the U.K. (710,000); Japan (565,000); Australia (562,000); China, not including Hong Kong (533,000); France (440,000); Germany (423,000; S. Korea (412,000) and India (199,000).(9) • There were 6.4 million visitors to California in 2011 who came from Mexico down 1 % from 2010, and 484,000 of those visitors arrived by air, an increase of 29% from 2010.(4,9) • California saw 1.5 million visitors from Canada in 2011, a 5% increase from 2010. This total represents 7.3% of all Canadian travel to the U.S. (9) Source: Tourism Economics Forecast April 2012 Source: STR. US Dept of Commerce Individual CA Airports California CWCs 55 vISTT ew ort GACL(tac. CALIFORNIA TOURISM HIGHLIGHTS, 2011 PRELIMINARY Importance of Travel and Tourism to the California Economy • Tourism generated $102.3 billion in spending in California in 2011. This total is up 7.6% from last year. • During 2011, travel spending in California directly supported 893,000 jobs, up 1.6% from 2010, while earn- ings increased by 3.1 % over last year, at $30.4 billion. • Travel spending generated the greatest number of jobs in accommodation and food services (523,000) and arts, entertainment and recreation (221,000 jobs). • Twenty percent of tourism - related dollars in the state in 2011 were attributable to spending by international travelers. • Travel spending in 2011 generated $2.3 billion in local taxes and $4 billion in state taxes. travel trends • Domestic and international visitors spent $102.3 billion in California in 2011. This spending supported 893,000 jobs and accounted for combined earnings of $30.4 billion. Travel spending generated $2.3 billion in local taxes and $4 billion in state taxes. • International Travel - California saw a projected 14.1 million person -trips in 2011. Approximately 6.2 million were from an overseas origin, 6.4 million from Mexico and 1.5 million from Canada. • In 2010, California saw 199 million domestic person - trips, 155 million of those were leisure trips. The forecast for 2011 is an increase of 2.8% in total domestic and an increase of 3.1 % in leisure domestic trips. California Travel Impacts by County, 1992 -2010, 2011 Prelim. Stale Estimates, Dean Runyan Associates, Inc., April 2012. Source: Visit California 56 � SIT ewort p 4 A ( H inc. TripAdvisorg, the world's largest travel site', announced the results of its annual summer travel survey of more than 1,800 U.S. respondents. Eighty -six percent of travelers are planning leisure trips this summer, up from 81 % that trav- eled last summer. A separate survey of more than 1,200 U.S. respondents showed that recently declining gas prices will not have an effect on leisure travel plans this summer, according to 86% of U.S. respondents. However, 10% now expect to take more trips by car this summer as a direct result of lower prices at the pumps. Summertime Shell -Out • More than a quarter of travelers surveyed (27 %) said they will spend more on leisure summer travel than they did in 2011, while 47% plan to spend the same amount as last year and 26% expect to spend less. • 70% will stay at a hotel this summer, up 3% from 2011, 31 % will stay at the home of family or friends, and 20% will spend their time in a vacation rental home. • Of those going on summer trips this year 70% will be traveling by car and 64% will be taking to the skies. • If it meant saving a bundle on airfare, 21 IN would be will- ing to drive more than 10 hours to their summer destina- tion. forecast • 79% would take a spontaneous trip this summer if they found a great deal. Memorial Day in Motion • More than one -third of U.S. respondents (34 %) planned to travel for Memorial Day weekend, up 8% from 2011. • Of those traveling this Memorial Day, 70% planned to get there by car. 27% of those traveling by car said they would travel between 100 and 200 miles to their getaway spot, 19% would go 50 -100 miles and 17% would drive more than 500 miles. 57 T ewport ' t� J� r A c, 1 -1 SUMMER HOT SPOTS The top five most popular summer destination types this year, according to U.S. travelers: 1. City - 58% 2. Ocean - 41 % 3. National park - 20% 4. Lake - 18% 5. Resort - 16% • 40% said the main reason for visiting their destination is due to tradition or because it's a favorite place, while 27% are going for a new experience /to see a new place. • According to the respondents, New York City, Las Vegas, and Chicago are the three most popular U.S. destina- tions for summer travel this year. • 35% of U.S. travelers are planning an international lei- sure trip this summer. U.S. regions travelers are planning to visit this summer: 1. Northeast - 35% 2. West - 31 % 3. Southeast - 30% 4. Midwest - 22% 5. Southwest - 17% forecast FUN IN THE SUN • Travelers will enjoy some active recreation during their leisure travel this summer. Hiking is the most popular activity (31 %), followed by water sports (25 %). • 41 % of respondents said while on vacation they plan to visit a historical site or landmark, 15% will attend a con- cert. and 12% will treat themselves to a food festival. "The majority of U.S. travelers are committed to their leisure summer travel plans, whether gas prices are up or down," says Karen Drake, Senior Director of Communications for TripAdvisor. "Even if it takes cutting back on mileage and staying closer to home, the vast majority of Americans will take summer trips." 'Source: comScore Media Matrix for TripAdvisor Sites, Worldwide, January 2012 'Source: comScore Media Metric for TripAdvisor Inc. and its subsidiaries, Worldwide, January ht tp: //f inance.yahoo. co Mnews /summer- travel - forecast - sunny -u- 100000462, ht ml 58 ewoort INC. forecast Forecast Rank Order 2011 of International Visitor Origin Country Actual 2011 Travelers % Change 11/10 to the % Change 2012f 12111 United 2013f States % Change 13/12 by 2014f Top % Change 14113 Origin 2015f Countries % Change 15114 2016f % Change 16/15 Change 16111 56 Change 16!11 Grand Total 62,328 4.2 %. 65,424 5.0% 68,298 4.4% 71,074 4.1% 73,847 3.9% 76,633 3.8% 14,305 23 -0% 1 Canada 21,031 5% 22,083 5% 23,039 4% 23,961 4% 24,760 3% 25,503 3`., 4,472 21% 2 Mexico 13,494 Ole 13,772 31. 14.093 2S 14,375 2'1, 14,662 2% 14.956 21n 1,542 11`: Overseas 27,083 6% 29.570 6% 31,166 5% 32,739 5% 34,424 5% 36,175 5% 8.291 30% 3 United Kingdom 3,835 0', 3,835 0'° 3,886 1"> 3,977 2" 4.070 Z; 4,178 3', 343 94 4 Japan 3.250 -4% 3.,336 3% 3,403 2% 3,482 2% 3.564 2% 3,635 2% 385 12% 5 Germany 1.824 6`5 1,903 4'. 1.960 3S 1,999 21� 2,052 3`a 2,100 2z 277 15°r 6 Brazil 1,508 26% 1,785 18% 2,011 13% 2,212 10% 2,389 8% 2,564 7% 1,056 70% 7 Franco 1,504 12% 1,554 3. 1.596 3° 1,644 Y 1,704 4°1 1 1,749 3`. 245 16', 8 Korea 1,145 3% 1,233 8% 1.319 7% 1,394 6% 1,473 6% 1,552 5? 406 35% 9 China 1,089 36% 1.474 35% 1.853 26', 2,248 21 1� 2.713 21% 3,246 20 °, 2,157 1981, 10 Australia 1,038 15% 1,131 9% 1,226 8% 1,319 8% 1,412 7% 1,501 6% 463 45% 11 Italy 892 6% 903 1% 916 1% 931 2'° 956 3% 978 P. 86 10r 12 Spain 700 9% 721 3% 738 2% 750 2% 765 2% 781 Td 80 it% 13 India 663 2% 692 4'' 734 6`s 778 6% 827 6% 879 6 ?, 206 33' 14 Nethoriands 601 5% 619 3% 636 3% 650 2% 661 2-% 672 2;� 71 12% 15 'Janezusla 561 14% 623 1 t', 671 8 a 702 5'. 730 4 °< 757 4', 196 35% 16 Argentina 512 17% 579 13.'. 629 9% 669 6% 709 6% 747 5`1 235 46% 17 Colombia 497 OS 518 4', 541 4` 559 3'1, 583 4% 610 5'1 113 23 1n 18 Switzerland 477 22% 524 104 552 5% 572 4% 590 3% 605 32, 129 27% 19 Swedon 439 18`5 471 T'� 496 5 °, 518 4% 535 3% 551 3'. II2 1.6 20 Ireland 347 -4% 342 -1 °: 346 1% 349 1% 356 2% 362 2`� IS 4% f = forecast Overseas includos all countries except Canada & Mexico Sources: U.S. Oepartmont of Commerce, ITA, Office of Travel & Tourism Industi-los; Statistics Canada; Banco de Mexico. April 2012 59 -" , ew ort forecast INTERNATIONAL VISITORS TO U.S. AND PROJECTIONS (2000.2016) Arrivals in Millions 100 80 -- 60 5 i 2 40 20 0 ---------- ------------ •------------------ _.-__. ._._.......... - -- 76.6 -- 73.8 68.3 71.1 554 59.8 62.3 56.0 . 57.9 55.0 M . -... . 2 -- 46.9 492 51.0 46.1 = 4 =�.6 412 M . ■ 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (f)2013(f)2014(f)2015(f)2016(f) Sources- U.S. Department of Commerce. ITA, Office of Travel & Tourism Industries, Secretana de Tunsmo (Mexico)-, Statistics Canada. -- April 2012 forecast HE T ew ort F� EACH marketing 11111Ir ewport COLLATERAL In an effort to meet the needs of the different constituencies, Visit Newport Beach Inc. publishes collateral materials that highlight Newport Beach and provides partners with additional exposure to visitors, event and meeting planners, as well as locals. Collateral is available as a printed piece or as a digital version on the Visit Newport Beach Inc. website. BEACH Y / t y._�. Official Visitors Guide The 2012 -2013 Official Visitors Guide has a new and improved look and feel that clearly captures the elegance and beauty of Newport Beach. It's a high -end magazine - style guide published annually and details everything that Newport Beach has to offer. It provides information that is important to visitors, including accommodations, a calendar of events, itineraries, neighborhoods, outdoor activities, shopping, dining, family fun, and weddings. In addition, there is a fold -out map that provides a detailed map of Newport Beach, as well as a micro version of different Newport Beach neighborhoods. collateral Map of Newport Beach Visit Newport Beach Inc. is producing 100,000 Newport Beach maps, which outline accommodations, beaches, major attractions, transportation, shopping, and dining. In addition, there is specific information on things to see and do in the different neighborhoods. r� Great Stays Guide This publication highlights all of the small inns, boutique hotels, cottages, camping, and vacation rentals, -as well as the hotels and resorts in Newport Beach. It provides photos, maps, and descriptions on each of the properties. Since it has not been updated for several years, Visit Newport Beach Inc. redesigned and produced this Guide in the fiscal year 2011/2012. 62 ewport f V 1 i -1INC. NL. --.- IUNI AUGUST -� SCI'TFMBER ULY MAY - - _ V -_^ NoVLMBkA Calendar of Events Visit Newport Beach Inc. has taken on the role of producing the annual calendar of events for the City of Newport Beach. This is a trifold brochure with events shown in a calendar format, as well as by category such as boating events, culinary events, running events, etc. This brochure highlights all of the great events in Newport Beach and directs people to our website for a more comprehensive look at activities to encourage them to plan their stay in Newport Beach around some of the fabulous events. collateral Other Material: The Kiosk Directory Maps were updated in early 2012. A newly developed Mini Map is a fold -out map and directory that was also created in early 2012. The Community Report will be published in the late summer of 2012 to recap the fiscal year of 2011/2012. The Marketing Plan is produced in June each year. Welcome to o . m Newport a x -= ..eY. Beach -- - - M.pnBead ^1WB .. f� � � .rr ♦rewgm�usimm f 'a 's __ M._. 3 •rte __- 4 Fnu�frlln.u: �'� ewport M :II , ,.a.a se Kiosk Directory Maps A Pocket Guide > - WPORA BEACH 63 NINhIM1I CULINARY calendar ro ARILI I'lILEE, _,�,- � 2012 IANUARY �--- ---° - EEBNUAAY BQATING� �..�. -- RVNS,R TRIATHLOLO N 5 UlIfC1WR -- -' TOSHIBA Will- SH NL. --.- IUNI AUGUST -� SCI'TFMBER ULY MAY - - _ V -_^ NoVLMBkA Calendar of Events Visit Newport Beach Inc. has taken on the role of producing the annual calendar of events for the City of Newport Beach. This is a trifold brochure with events shown in a calendar format, as well as by category such as boating events, culinary events, running events, etc. This brochure highlights all of the great events in Newport Beach and directs people to our website for a more comprehensive look at activities to encourage them to plan their stay in Newport Beach around some of the fabulous events. collateral Other Material: The Kiosk Directory Maps were updated in early 2012. A newly developed Mini Map is a fold -out map and directory that was also created in early 2012. The Community Report will be published in the late summer of 2012 to recap the fiscal year of 2011/2012. The Marketing Plan is produced in June each year. Welcome to o . m Newport a x -= ..eY. Beach -- - - M.pnBead ^1WB .. f� � � .rr ♦rewgm�usimm f 'a 's __ M._. 3 •rte __- 4 Fnu�frlln.u: �'� ewport M :II , ,.a.a se Kiosk Directory Maps A Pocket Guide > - WPORA BEACH 63 . ,-, e>N ort INC collateral Official Visitors Guide 100,000 printed Visitors Sent to visitors prior to their arrival 2,500 USB drives Online 2,500 CDs Attractions in Orange County, Disneyland Hotel, California Welcome Centers, Fashion Island, Car Rental Companies, Local Hotels, John Wayne Airport Map of Newport Beach 100,000 Visitors Sent to visitors prior to their arrival • Online • Attractions in Orange County, Disneyland Hotel, California Welcome Centers, Fashion Island, Car Rental Companies, Local Hotels, John Wayne Airport Great Stays Guide 10,000 Visitors Sent to visitors prior to their arrival • Online • Attractions in Orange County, Disneyland Hotel, California Welcome Centers, Fashion Island, Car Rental Companies, Local Hotels, John Wayne Airport Calendar of Events 5,000 Visitors and Locals Sent to visitors prior to their arrival • Distributed by the City of Newport Beach to their constituents 64 T ew,bort e tip e� GACHinc. WEBSITE The Visit Newport Beach Inc. website will look to get a complete redesign for the 2012/2013 fiscal year. Refreshing the look and updating the functionality will enhance the user experience while allowing them to get more out of the site as a research and planning tool. Make social media channels a more prominent part of every web page, including emerging channels like Pinterest, Google +, and Instagram. Build out ever - living landing pages that can bring attention to events and content year -round on the website. Move to a book - direct interface for lodging, sending referrals to lodging partners while minimizing their booking fees. Maximize organic traffic from online tools such as Google Webmaster, Google Places and Search Engine Optimization. Overhaul navigation to more user - centric categories and logic -based paths that will increase the user experience. Integrate social buttons across the site to make sharing web content easier across multiple channels. Look at feasibility of Visit Newport Beach Inc. ads incorporated at strategic pages of the site to bring better awareness to overall goals. Build in digital ad- serving capabilities that can generate incremental revenue. website SEARCH ENGINE OPTIMIZATION Organic search engine results are by far the number one referral to visitnewport beach. com. By effectively working on key SEO tactics, Visit Newport Beach Inc. will focus on natural search engine growth while also improving result rankings for the top keywords of the destination. Create web - friendly page URLs for the website. This will allow better indexing and keyword matching for search engines to maximize organic rankings. Identify top traffic web pages and rewrite copy more "SEO friendly" to increase page rankings. Work on back links from high- authority domain sites through keyword- focused, anchored text and encourage third -party sites to utilize relative keyword root domains when pointing to visitnewportbeach.com. Leverage third -party tools (Google Webmaster, Google Places) to drive traffic to website. 65 VISIT . ewport SOCIAL MEDIA The overall goal of the Visit Newport Beach Inc. social media plan is to expose and engage both the returning and first -time visitor to all facets of the destination through quality interac- tions that fuel their matching passions. With quality content, we can then leverage the consumer base as our advocate and bring attention to each of our partners in the community. Key initiatives include: Incorporate social sharing throughout the redesigned website, above the fold for maximum visibility. Engagement contests: Encourage fan sharing (photo /videos), which will help develop consumable content and focus enthusiasts to join social channels in order to participate. Create engagement and increase click- through rates with compelling offers and discounts. Promote general branding of Newport Beach, including activities, town offerings and summer /winter specific campaigns. Branch out to emerging social trends such as Pinterest, Google+ and Instagram, in addition to other current social channels. Cross reference among various social -user base to help increase followers. Tag partners in postings for guests to access partner content with one click. Increase short, quick, viral videos of the area that can be posted immediately and give an authentic feel to the destination. social media Adm,. Panel cm, vp. - oma •" .tr,... W.t, - see.. Newport Reach - Southern California �"Mn� bnwaoen 4�a. CA 1. 1xr.1 ... _ W.+enn Gnay.W Pm,r�fe Wber facebook Newport rBeach, Calif dNeWportaeacn rr6�a M.rW,Nanua:K r..tiv:e.�'mv[y ai9.'b�5c4a. - twitter /twitpic 20 2 EmWA W9 Photo e..�d._ .corem.er 66 VIB, T' e1 ort Aae . A—A . r .wn - Newport Beach © Suuy p.a«Ynn 4bar. �a m ae.u.?+.w, a eb OxEC wo-e d M ane, vOM x+ Y y V N:vmrr , �e cave � Om llYn,Ja, T9af2 ta.Yn OWm hY. nrwpan BeuA Be]uw.nb FLLlppa. -7' newpvrt Br.rh L.vne Een Lo.: mwyr.m. Au,una I.nr ... a—h MW Lee pinterest kuM1 Ne »porl Br.aA Iluteh r a. EBn %vwpun B..ah 5huppmB W. R Plotn5 by m,Ima.p.aheacb on Inuagram social media :Bane�,poy noeeM EGUMMMM �+~ ate........ s ft instagram 67 r ewport The mobile market continues to show strong growth and has become a standard platform for the consumer planning a trip as well as an in- destination resource for information. Visit Newport Beach Inc. will continue to grow within the mobile digital space as new technologies emerge. Focus on the newly launched Visit Newport Beach Inc. mobile application to grow user base with website, social media, e-mail, and search ads. Create revenue stream with mobile- device ad sales. Increase use of QR codes designed into traditional campaigns that redirect to mobile- specific landing pages. Redesign mobile website with more information and easy navigation while promoting our digital app on both the iPhone and the Android phones. Look at next steps for migrating the destination app into a bigger, visual interface for tablets and iPads. Leverage third -party application content to create content for social channels (YouTube videos, Instagram photos). Work with partners to actively participate and claim their business listings to reach consumers on location -based mobile apps (Foursquare, Yelp, Gowalla). digital communications With a database of approximately 30,000, our e- communi- cations efforts remain an integral part of our marketing and communications efforts. The e- newsletters have undergone a complete redesign with a more streamlined look and feel, as well as fresh new content that is both informative and beneficial to the reader. Each article directs users to click through to a dedicated landing page on the Visit Newport Beach website. Our focus is to increase open rate, grow subscribers and retain users on the Visit Newport Beach website for longer periods of time. Visit Newport Beach Inc. will continue to target the consumer market while focusing on list growth and upsell opportunities. Monthly consumer and partner communications will provide information on current and upcoming events while additional "one -off" dedicated communications will promote specific events and happenings. Key initiatives: Monthly distribution with new slimline look, making content consumption easier and linking back to VNB website with more detailed content. Look to create an ongoing incentive for e-mail signup to support database growth. Leverage other efforts (trade shows, social, etc.) to maximize collection of e-mail addresses. Create a value -added promotion spot on consumer e-mail (spon- sored ad) — featured deal in form of digital banner or web links. E -mail communications are distributed among the following channels: • Consumers • Media • Community Partners • Meeting Planners • Conference Sales ff'.3 T ewport 4_(1, L A C; H ANC. ADVERTISING & MEDIA STRATEGY In order to break through the clutter, increase demand, and grow visitation, Visit Newport Beach Inc. will launch new advertising campaign in the 2012/2013 fiscal year. It will include stunning visuals and incorporate the essence of Newport Beach - "Elegant yet approachable. Fun yet sophisticated." Objectives: Clarify Newport Beach's market position relative to its primary competitors: Greater Los Angeles Area beach communities Palm Springs Santa Barbara Laguna Beach Huntington Beach San Diego Convert more Southern California day visitors to overnight guests. Attract more visitors to the destination website. Implement a campaign that engages industry and community stakeholders. Unique Selling Propositions: Newport Beach is an aspirational Southern California lifestyle destination that emphasizes a taste of the perfect life. Eclectic mix of neighborhoods Charming seaside village World's largest small -yacht harbor advertising & media strategy Key Categories: (Based on June 2011 study by YPartnership): Seaside Fun Hip, cool, contemporary Family- oriented Healthy Beautiful scenery Interesting Annual Advertising Focus: • Seasonal ad campaigns -summer, fall, winter, and spring. Newport Beach events - Tie room nights to key events throughout the year. • Themed advertising - Develop programs to tie a theme/ message to hotel room nights, such as wedding, luxury, dining, or shopping. M - 1s],Ik7ort MEDIA STRATEGY Target Audience Women aged 35 -64 years old with an annual household income of $125,000+ Drive Markets: Greater LA market area Palm Springs San Diego Feeder Markets: Phoenix Dallas Denver San Francisco One of the main responsibilities of Visit Newport Beach Inc. is to reach both domestic and international visitors throughout the year. Per the research conducted by Horizon Consumer Science, most of the domestic efforts will focus on the California market, since 63% of all visitors to Newport Beach are from California. The largest international market is Western Europe/United Kingdom, which represents 37 %. Top 5 Domestic Markets to Newport Beach 4 %N3% 2% d °6, • California • Utah Top 5 International Markets to Newport Beach 4 %- % 3% Western EuropeNK `Western Canada °Arizona 1s% 43% -Asia • Nevada •Middle East Connecticut - Eastern Canada • Texas - AuslraliaRJew Zealand advertising & media strategy ADVERTISING MIX The new campaign will be placed in various markets, including direct -to- consumer, trade and corporate audiences domestically and internationally. • Online Advertising - It is integral to focus a significant amount of the media buy on online, since most visitors research and purchase travel online. More focus should be on sites that reach consumers during the exploration/dea phase, since consumers have probably already determined where they want to go when they're on the online travel agency sites. • Print Advertising - Traditional advertising in magazines and newspapers is especially important when reaching consumers during the exploration/idea phase. • Radio - Online and on -air advertising with radio networks. • Out of Home - Advertising at John Wayne Airport, events, and cinema. • Video - Use new video footage from the 2011/2012 fiscal year to engage consumers. Proposed Advertising Mix S% - Digital 105, Orint Radio /Sponsorship/ 150% Events %P • Out of Home/ Cinema /Other 70 ewAort INC. PROMOTIONS To complement the advertising strategy, Visit Newport Beach Inc. will gain additional exposure and room nights by implementing different promotions throughout the year. In addition to the following promotions, Visit Newport Beach Inc. will explore additional opportunities in the new fiscal year. promotions Seasonal Ad Campaigns Promotions targeting the LUXURY market Event -Based Promotions Newport Beach Restaurant Week Newport Beach Film Festival Summer Concerts 4th of July Christmas Boat Parade Themed Promotions Key holidays (i.e., Mother's Day, Father's Day, 4th of July) Special Events (i.e., birthdays, anniversaries, weddings) Shoulder- season promotions (i.e., date night, girlfriend getaway, dining, shopping) General brand awareness with mass appeal to generate overall exposure for Newport Beach Wheel of Fortune Price is Right 71 VISIT SIT �iE A C t i jNr PUBLIC RELATIONS The role of public relations continues to grow and expand at Visit Newport Beach Inc. Great emphasis is placed on creat- ing interest and demand for the destination to leisure and meetings audiences. Additionally, the area has taken great strides in fostering existing relationships while developing new ones as the pool of "influencers" grows and changes in the year ahead. Foundational PR Elements for Visit Newport Beach The PR department develops and maintains the following items as foundational tools to share the Newport Beach story with media: Press Kit Fact Sheets Historical & Background Information Boilerplate Itineraries Basic Copy Points E- Communications Copy Editorial Calendar for Pitches Social Medial PR Strategy Copy Visit Newport Beach Inc. is very intentional with the copy that is used to tell the story of our great destination. Copy is provided to engage the reader in the full experience of this aspirational destination. Copy is provided for all of the collateral developed by Visit Newport Beach Inc., as well as for advertorials, blogging, a -news and scriptwriting. public relations Media Relations & Outreach It is important for Visit Newport Beach Inc. to develop relationships with luxury publications, travel writers, influential bloggers and media professionals. There is an editorial submissions calendar to provide the overall strategy of pitching stories out to media. Visit Newport Beach Inc. also hosts media visits for selected media professionals to visit the destination for a firsthand experience of all that Newport Beach has to offer. The team is flexible in handling inquiries and responding to spur -of- the - moment opportunities as they arise. PR Efforts Visit Newport Beach Inc. has already established relationships, which allows for a strategic plan to reach out and share the Newport Beach story to media as we support the following efforts: Seasonal luxury ad campaigns (summer, fall, winter, and spring) Newport Beach events (tie room nights to key events throughout the year) Newport Beach Restaurant Week Newport to Ensenada Yacht Race Newport Beach Film Festival 4th of July Taste of Newport Christmas Boat Parade Key holidays (i.e., Mother's Day, Father's Day, 4th of July) Themed campaigns- stories to tie hotel room nights to themes (holidays, birthdays, anniversaries, wedding, date night, girlfriend getaways, dining, or shopping). Unique Newport Beach Stories 72 V131T VI H INC Content Delivery Methods Content is delivered through the channels below. The branding of our messages is consistent with the overall marketing messaging, but the way it is delivered is customized to each outlet. Traditional media (print and broadcast media) Online media, (e- zines, and online sites of traditional media) Bloggers Social media (Facebook, YouTube, Twitter, Pinterest, etc.) E- Newsletters to partners and consumer audiences Crisis Communications & Reputation Management The crisis program is being updated to work as a cohesive unit with the City of Newport Beach to provide support and information in the event of an emergency or natural disaster. Photography & Video Production As the trend for consumers and news media is to discover and share content through photography and HD video, Visit Newport Beach Inc. has produced several customized videos to enhance our messaging. This year we will continue to produce high - quality videos for various events and partners to build upon the current photo and video library established in FY 2011/2012. public relations Qrw 73 ewAort INC. r international efforts INTERNATIONAL REPRESENTATION The Visit California organization spends more than $50 million to market the state of California in international marketing and advertising efforts. Visit Newport Beach Inc. believes it is important to leverage the funds already being spent to showcase Newport Beach as a premier California destination. Visit Newport Beach Inc. secured Gate 7 as representation in Australia and Black Diamond in the U.K. market. Both organizations also work with Visit California, so it is a smart relationship to leverage. Since these relationships were newly established in 2011 -2012, the priority in 2012 -2013 will be to further enhance the relationship with the international travel industry through their training and outreach. Visit Newport Beach Inc. is also keeping an eye on the emerging markets of China and Dubai for future consideration. Gate 7 in Australia and Black Diamond in the United Kingdom execute wholesale marketing and public relations efforts on behalf of Newport Beach. These representatives are an extension of the team and are tasked with specific goals to increase visitation to Newport Beach and build overall awareness. Following are the representatives and their respective efforts: 74 AUSTRALIA EFFORTS Consultant: Travel & Public Relations — Gate 7 — www.gate7.com.au Australia Activities • Product Development Meetings — Gate 7 will continue to attend industry specific shows in Australia, as well as continue their efforts to increase room -night sales through meetings with operators. • Destination Visits — Gate 7 assists several wholesalers with the planning and coordinating of educational trips to Newport Beach, such as Jet Set Travel World. • Public Relations — Gate 7 will continue to integrate with the in -house PR team to create ongoing interest in the destination, original content for the Australian market, and dynamic itineraries for visiting media. INTERNATIONAL MARKETING: AUSTRALIA • Australia had approximately 502,000 visitors to California in 2010 • Australians spent approximately $589 million in California 600 500 400 �w 200 loo 0 X02 Number of visitors from Austr 313 20li r b jAIM 2(101 2002 2003 10011 2005 20% 2007 2008 7.009 21710 So=e' Wernallon• Trade AdmY isenow. Meee aTr..r aria T" W lr domes Australia • The volume of Australian visitors to California has experienced strong recovery since 2003 • Australian arrivals at California airports have demonstrated consistent peaks in September and December Comparisons with Overseas Visitors Travelers from Australia are more likely to: • Travel to California for leisure /recreation /holiday purposes • Make use of a travel agency as a trip - planning source and means of booking air travel • Have a decidedly longer trip - planning and advance airline- booking horizon • Stay in a hotel or motel • Visit Los Angeles, New York City and the DC Metro area while in the U.S. • Go sightseeing in cities, visit historical places, visit amusement or theme parks, visit national parks, see cultural heritage sites, tour the countryside, visit art galleries /museums, and go on guided tours • Make use of a taxi /limousine and airlines in the U.S. as means of transportation while in the U.S. Source: Visit California Travelers from Australia to California 75 v,r e' ort CHARACTERISTICS OF TRAVELERS FROM AUSTRALIA TO CALIFORNIA, 2010 ex va4ore to not wtsAaes om or ww. Mlepla response question. Table fray add a not T Bun 100%. - Survey baeert,ibul Trade A%elersimewi Office WTravel and Towsm Indusldes " Survuy of Iraemabaul a Travrers.' Australia All Makers Leisure All overseas from Visitors from Trip It Traveler Characteristics visitors- Australia Australia n =7.760 n -41i (ft •3d9 Primary Purpose of Trip LetsurerRecreatioNHolxiays 48% 70% 81% VSa Fnends/Relatives 22% 16% 19% BuslnessrPmlessional 21% ii% - Convenuon/Conference 5% 1% - Other Purpose 5% 1% - ToL1 100% 100% 100% Purpose of Trip" 2% 1% 1% LelsureiRecreabaVHolloays 67% 83% 93% Visa Fnerlds/Relatives 39% 46% 50% BuslnessrPTote55gnn1 24% 14% 2% Conventmcmfe mm 9% 9% 2% Sources Used to Plan Trip-' 14% 5% 6% Personal Computer dot% 46% 44% Travel Agency 40% 60% 60% Ai hies Dueclty 23% 20% 20% FnendsrRelallves 17% 21% 23% Travel Guldes 10% 11% 12% Corporate Travel Department 8% 1% 2% Tour Company 5% 3% 4% SlalefCily, Travel Office 4% 2% 3% News a ers/tvia ailnes 3% 5% 5% Advance Planning for Trip 84% 90% 91% 7 days or less 6% 3% 8% 8 30 days 28% 14% '1% 31 - 60 days 20% 15% 100% 61 -90 days 12% 12% 464% More than 3 Months 34% 57% 20% Total 100% 100% 80% Aver a Planon Tiine m Da s 98 da s 145 da 100% Advance Airline Reservations 7 tlays or less 12% 6% 2% 8. 30 days 30% 29°4 23% 31 -60 days 17% 11% 12% 61-90 days 10% 15% 16% 91- 120 (Lays 7% 12% 13% 121 . 180 days 10% 20% 22% 6 Months or More 7% 8% 8% Total 100% 100% lop% Average Bookinic In Days 68 days 92 days 100 days ex va4ore to not wtsAaes om or ww. Mlepla response question. Table fray add a not T Bun 100%. - Survey baeert,ibul Trade A%elersimewi Office WTravel and Towsm Indusldes " Survuy of Iraemabaul a Travrers.' Australia - U s vadors to a U.8 do iwl wvlors Tom (an a Meow Sources' I e n Trade ravninstrration Office of Travel and! T osm Industries 'Survey of Ini x mati oml Air Travelers" 76 Leisure All OVer6lae All VIOROre Vislrors from Trip 8 Traveler Characteristics Vlskors' from Australia Australia n =7.760 111-416 n :348 Means of Booking Air Trip Travel Agent 46% 65% 65% Personal Computer 26% 20% 21% Airlines Duectly 13% 12% 12% Corporate Travel Department 8% 2% - Tour Operator 4% 1% - TravelCiub 1% - - Other /Don't allow 2% 1% 1% Total 100% 100% 100% Main Factor to Selecting Airline Airfare 29% 32% 36% Schedule 14% 13% 6% Non -Slop Fllghl 14% 5% 6% Mileage Bonus/Frequenl FtM Program 10% 7% 7% Previous Good Experience 9% 6% 5% Safety Repulallon 8% 10% 21% Airline Loyalty 4% 6% 6% In-flight Service 4% 1% 1% Employer policy 3% 2% 2% Other 6% 9% 10% Total 100% 100% 100% Airline Seating Area EconomyRdunst/Coach 84% 90% 91% Executive /Business 15% 8% 8% First Class 2% 2% '1% Total 100% 100% 100% Use of Package Yes 14% 17% 20% No 86% 836A 80% Total 100% 100% 100% Advance Package Booking 7 days or less 4% 2% 2% 8 -30 days 27% 7% 7% 31 - 60 days 15% 9% 94...5 61 . 90 days 10% 10% 10% 91 -120 days 11% 12% 12% 121 - 180 days 20% 46% 461/6 6 Months or More 14% 14% 14% Total 100% 100% t00% - U s vadors to a U.8 do iwl wvlors Tom (an a Meow Sources' I e n Trade ravninstrration Office of Travel and! T osm Industries 'Survey of Ini x mati oml Air Travelers" 76 VISIT __.ewport ^ t ( 14 TNa ' Overseas visdors 10 the U S. do not indrde v,s i.,s hoot Canada or Mexico. "Multiple response question. Table nmv add to more than 100%. Sources: International Trade Adnanistration Office o1 Travel and Tounsm Industries " Survev of International Air Travelers." Australia Lslsure All Overseas All Visitors Visitors from Trip 8 Traveler Characteristics Visitors' from Australla Australia n =7760 ) (n = 416) 349 Travel Compactors— Traveling Alone 39% 24% 21% Dinlrg Out 27% 43% 49% Sightseeing in Cities 25% 39% A Friends 11% 8% 9% Busbies , Associates 3% 2% 1% Tour Group 2% 1% 1% Average Travel Party Size 1.6 1.8 19 Median Travel Party Size 1.0 2.0 2.0 T or LOd Irag" Aw 78% 66% 53% Private Home 29% 27% 28% Omer 4% 3% 3% Length of Stay 23% 1 48°i 55% Mean Nights In the U S. 22.8 nights 28.2 nights 26.8 nights 11.3 nights 9.1 nights 44% %of California Nights 50% 3260 28% Prior Visitation to the U.S. 37% 53% 55% First Trip to the U.S. (% Yes) 27% 38% 41% Average Trips to the U S. in Past Year 1.8 trips 1 2 trips 1, 2 trips Average Trips to the U.S_ in Past 5 Years 5.2 trips 2.2 ups 2 0 trips Average Number of States Visited 2.1 states 3.0 states 2 9 stales Average Number of Destinations Visited 3.0 deS. 3.9 dest. 4.0 lest. Places Visited in the ULS." Los Angeles 60% 72% YM, San Franosco 47% 45% 49% Las Vegas 29% 34% 39% New York City 16% 37% 41% San Diego 14% 14% 8% Flagstaff 8% 5% 6% AnailemSanlz Ana 7% 12% 14% Grand Canyon 5% 5% 6% San Jose 5% 1% 1% DC Metro Area 5% 15% It% Yosein4e 4% 3% 3% Chicago 4% 6% 5% Monterey - Salinas 4% 10% 12% Mlamt 4% 10% 5% Riverside /San Bernardino 4% 3% 4% Seattle 3% 9% 4% Sacramento 3% 3% 3% ' Overseas visdors 10 the U S. do not indrde v,s i.,s hoot Canada or Mexico. "Multiple response question. Table nmv add to more than 100%. Sources: International Trade Adnanistration Office o1 Travel and Tounsm Industries " Survev of International Air Travelers." Australia erseas visitors to me U S. do col include visitors from Canada or Mexico. Multiple response question. Table nt<ny add to more than 100% Sources: International Trade Administration Office of Travel and Tourism Industries "Survey of International Air'rmvelers,` 77 Leisure All Overseas All Visitors Visitors from Trip 8 Traveler Characteristics Visitors' from Australia Australia n = 7,760 (n = 416) In = 349) Activities Experienced While in the U.S,- ShoDping 88% 95% 960/6 Dinlrg Out 85% 91% 91% Sightseeing in Cities 57% 79% 81% FBstorical Places 47% 73% 73% AmusernenUTnelne Parks 40% 53% 59% National Parks 28% 48% 49% Visiting Small Towns 38% 45% 43% Cultural Heritage Sties 31% 48% 47% Touring Countryside 31% 47% 53% Art Gallery/Museum 26% 48% 48% Casinos/Gambling 2.5% 29% 34% Guided Tours 23% 1 48°i 55% Transportation While in the U.S." 41% 46% 44% 39% 53 °Jo 56% 37% 53% 55% Company or Private Auto 28% 21% 22% City Subway7Tram/Bus 25% 31% 34% Railroad between Cities 12% 12% 13% Bus between Cities 10% 180/6 20% Motor Home/Cam r 2% 1 °/ Visitor Spending In the U.S. Per Travel Party Per Trip (U 5.) $3,797 56,730 $6.730 Per Usilar7Trip (U.S_) $2.435 S3.640 $3,522 Per Visitor Per Day $107 $129 $131 Per Visitor /Trl Calhom:a $1.209 51.174 $996 Spending by Category (Per Visitor /Trip) Lodging $661 $1015 $809 Food/Beverages 5514 5853 5804 Gifts /Souventrs 5421 5547 $654 Transportation in the U.S. $384 5622 $596 Entertainment $243 S499 5553 Expenses at the Airport $34 $29 $31 Other $179 $77 $76 Total Spending Per VlsitorrTrl $2,435 $3,640 $3,522 erseas visitors to me U S. do col include visitors from Canada or Mexico. Multiple response question. Table nt<ny add to more than 100% Sources: International Trade Administration Office of Travel and Tourism Industries "Survey of International Air'rmvelers,` 77 e, ort 1NC ' Overseas visitors to the U.S. do not include visitors from Canada or Mexico. Sources: International Trade Administration Office of Travel and Tourism Industries "Survey of International Air Travelers." Australia fffl Leisure All Overseas All Visitors Visitors from Trip 8 Traveler Characteristics Visitors` from Australia Australia n = 7,760 n = 416 n = 349 Payment Method for Trip Expenses Credit Cards 52% 46% 42% Cash 39% 34% 35% Debit Cards 7% 20% 22% Travelers ChecKS 1°% 1% 1% Total 100% 100% 100% Age Average Age - Males 4:3 years 42 years Average Age - Females 40 years a2 years Occupation Professionaffechnical 33% 42°% _ Manager/Executive 29% 17% 14% Student 10% 5% 5% Retired 9% 12°% 14°% Clerical/Sales 8% 11°% 12% Other 12% 13% 15% Total 100% 100% 100% Annual Household Income Under $20.000 8% 2% 1 % 520,000 - $39,999 13% 7% 8% W.000 - $59,999 14% 14% 17% $60,000 - $79,999 13% 14% 16% 580,000 - $99,999 11% 12% 12% $100.000 - 5119,999 11% 18% 12% 5120,000 - $139,999 7°% 6% 5% S 140,000 - $159,999 6% 9% 10°% 5160,0/x0 - 3179,999 3% 5°% 5% 5180.000- $199,999 3% 1% 1°% 5200,000 and over 13°% 12% 13°% Total 100% 100°% 100% Average Annual Income 596200 $107,300 5104,900 ' Overseas visitors to the U.S. do not include visitors from Canada or Mexico. Sources: International Trade Administration Office of Travel and Tourism Industries "Survey of International Air Travelers." Australia fffl r ewport e e� EA('Hixc. UNITED KINGDOM EFFORTS Consultants: Travel Relations & PR — Black Diamond — www.blackdiamond.co.uk/travel UNITED KINGDOM ACTIVITIES Trade Events Black Diamond will continue to participate in a number of regional trade events consisting of general networking and presentations on California (including Newport Beach). In the new fiscal year, Black Diamond will explore opportunities that will garner further exposure at these events. Product Development Meetings & Events Similar to the 2011/2012 fiscal year, Black Diamond will continue to generate exposure and room nights through consumer - focused events like the North American Travel Service event, Bon Voyage Consumer Evening, Aspire Luxury Forum and the Tour Operator Advisory Board. The purpose of such events is to educate travel agents and tour operators about Newport Beach and encourage them to promote Newport Beach as a destination. United Kingdom Destination Visits The U.K. team assists several wholesalers with the planning and coordinating of educational trips to Newport Beach, including North American Travel Service, Virgin Holidays, British Airways, Trailfinders, Thomas Cook, and Wexas. Promotions Black Diamond will collaborate with third -party businesses that align with our brand to develop consumer promotions throughout the U.K. to encourage travel to Newport Beach. Public Relations Black Diamond works seamlessly with the in -house PR team to create ongoing interest in the destination. Together they create exciting campaigns with original content customized to the U.K. market, which is disseminated through press releases, blogs, social media, and dynamic itineraries for visiting media. 79 //c° port INTERNATIONAL MARKETING: UNITED KINGDOM Visitation Trends (Arrivals) United Kingdom Spending Trends (Exports) 11%11111ions of U.S. Doflarsl Total Travel& TourismExportst'� 2004 $12,655 200.5 $13,492 2006 %13,310 2007 $14,938 2008 $16,716 2009 " $11,429 2010 $11,566 210111, 513.223 Change $568 Travel Receipts $9,701 $10,824 $10,946 $12,120 $13,155 $8,884 $8365 $9.823 $122 Passenger Fare Receipts $2- 954 $2,668 $2;364 $2,818 $3,561 $2,545 $2,801 $3,400 $446 Change ( %) ui Total Espurts l2 7 - t 1 2 ? -32 I 14 4 (p) Preliminary New Media Trend Watch - Market by Country - UK 80 �«�T e�ort United Kingdom INTERNATIONAL MARKETING: UNITED KINGDOM Information Source Used for Trip Planning Main Purpose of Trip Main Purpose of I 2011 Point o. (Percent) Change (2) Leis ure /Ree. /Holidays 63 60 -3.3 Visit Friends /Relatives 20 22 1.7 BusinessTrofessional 14 15 0.7 ConventiotVConference 2 2 0.1 Studylfeaching 1 2 0.6 New Media Trend Watch - Market by Country - UK 81 INTERNATIONAL MARKETING: UNITED KINGDOM All Purposes of Trip United Kingdom Purpose (111111tiple response--top 4 ot 8 Leisure /Ree. /Holidays I I (Pei-cent) 75 2011 (Pei-cent) 72 Point Change (2) -2.3 Visit Friends /Relatives 12 31 1.1 Business/Professional 16 17 LO Convention /Conference 4 4 0.1 Airlines in U.S_ 1 20 1 18 1 -2.1 NET PURPOSES OF TRIP: Leisure & VFR 87 87 -0.9 Transportation Used in the United States Transportation Types Used in United (multiple response--top 5 of 8) Taxi/Cab /Limousine States 2010 (Pei-cent) 46 2011 (Pei-cent) 46 Point Change (2) 0.0 Rented Auto 33 31 -1.6 Company or Private Auto 24 25 1.0 City SubwayllrantBus 22 21 -0.7 Airlines in U.S_ 1 20 1 18 1 -2.1 New Media Trend Watch - Market by Country - UK 82 VISIT etrort INTERNATIONAL MARKETING: UNITED KINGDOM United Kingdom Activity Participation While in the United States Activity Participation While in the U.S. (multiple;esponw--top 10of 2�) Dining in Restaurants 2010 (Percent) 94 2011 (Percent) 94 Point Change (2) 0.1 Shopping 88 87 -1.6 Sightseeing in Cities 45 44 -0.6 Visit Historical Places 42 41 -13 Aurusement/Therne Parks 34 32 -2.3 Visit Small Towns 27 26 - L 1 Water Sports /Sunhathing 28 25 -2.3 Cultural heritage Sites 25 23 2.2 Art Gallery /Museum 22 21 -0.9 Visit National Parks 21 20 -IA Touring Countryside 22 20 -1.6 Traidej Characteristics Advance Trip Decision Time (mean clays) I 130 2011 128 -2.1 days Advance grip Decision Time (median dati_ s) 90 90 0.0 days Prepaid Package 22% 18% -3.2 pts. I irst International'Inp to the U S 17% 18% 0.7 pts. Length of Stay in U.S. (mean niehts) 13.7 14.6 0.9 nights Length of Stay in U-S. (median nights) 11 10 -1 nights Number of Stales Visited (% 1 state) 72% 72% 1 0.6 pis. Average Number of Stales Visited 1.4 1.5 0. l states Hotel /Motel (% I+ nights) 8040 78% -2.0 pis. Average # of Nights in HoteVMoiel 8.5 8.8 03 nights Travel Party Size (mean # of persons) 1.8 1.8 0.0 ('lender: %Male (amongadults) 48 °,u 48o•S, 03 pis. Household Income (mean average) ','102,800 5106,600 53,800 Household Income (median average) 589,400 594,100 54,700 Average Age: 1•emale 43 43 -0.4 years Average Age: Male 47 44 -2.8 years New Media Trend Watch - Market by Country - UK h .. •' PYY nYC r :Nc VISIT CALIFORNIA United Kingdom Travel Trade Barometer United Kingdom Travel Trade Barometer 2011 S4 Change in Bookngs 3rd Qlr 2011 4th Qtr 2011 (P) '1 st Qtr 2012 (P AVE NC AVE Nc AVE NC U.S. Down 4 9% 0% 0% 100 Lacer 0% 0% 100% Lower 04'. 0% 100% California Down i -3% 18%10%182% 27.3 %:_ Lower 0% 3 64% Lower 1 0% 1 0% 1 100% !PI • iq�pa eesk.nv A,- - Awoe. NCRiSV Al • AEOVr W saran • Ox�easM !C .1b Gvige We: m rris u[ a excuse no eomm.ne nn C alifaria 3rdQb- 2011 Booking Choice % Ina &a ed more than 20% 0.00. Increased 160. to 200i 0.0'x. Increased 100. to 15% 0.0'. Inaeasud 4'. ro 9% Do-. Increased 1 °S to 3 °6 IS.'_°. No C'banxe 0A9. Decreased 1% to 3e. 54.5° %. - Detteaxd4 %a to 9`a 27.3 %:_ Decreased 10'. to 15'. 0.9% Decreased 16'. to '00. 0.00• Decreased more than 20D. 0A's 1 No comment 0.04. 1 California Third Quarter 2011 Bookings • Summer bookings decline 1 to 3 percent United Kingdom California Highlights • Britain to California to start 2012 were projected to be lower Projected 4th Qtr 20)l travel to tali£otnra Choice Much higher lllgher :tbour the sax Lonw Much lower. >}0& knMV QJO l iU 0.4°o I ere 16.4174 - 63 6% — O.E7°a I 0.ao; I Projected Is* Qti 201-1 bwvel to C aufotma I'°' Choice Much higher nigher about the Sat Loner Much lower Doat knou q4 0.0% 0.0% ae 0.0% I 100.01 < 0.0 °a 0.0% California Projected Fourth Quarter 2011 and First Quarter 2012 Bookings • 2012 were projected to be lower i] V151 ewAort I INC. VISIT CALIFORNIA Travelers from the United Kingdom to California • U.K. was California's largest overseas market, with approximately 682,000 visitors to California in 2010 • Spent approximately $731 million. • U.K. visitors to California during 2010 reported spending $103 per day during a 10.4 -night average stay, or approximately $1,071 per visitor. The average spending for all overseas visitors to California was about $1,209 ($107 per day; 11.3 nights in California). Residents of the U.K. Monthly Port of Entry Arrivals to CA — 2008 -2010 60,000 50,000 40,000 39,000 20,000 14000 -2009 2010 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec U.S. Department of Homeland Security, t -94 Form; CIC Research, Inc. COMPARISONS WITH OVERSEAS VISITORS Visitors from the U.K. are more likely to: • Travel to California for leisure /recreation /holiday purposes • Plan and book their air trip via a personal computer • Have longer trip planning • Travel with a spouse • Dine out, go sightseeing in cities, visit historical places, visit small towns, go to cultural heritage sites and tour the countryside while in the U.S. United Kingdom Visitors from the United Kingdom Year Total U.S. Arrivals' California Market Share' Visitors to California fest.1 2000 4,703008 16.3% 767.000 2001 4.097,258 15.4% 631.000 2002 3.816,736 173% 660.000 2003 3,936112 176% 693,000 2004 4.302,737 161% 693,000 2005 1 4.344,957 1 17.9% 1 778.000 2006 4,176,211 18.0% 752.000 2007 4,497,858 17.0% 765,000 2008 4,564,895 17.9°/ 816.000 2009 3,899,167 17.0% 662,000 2010 3,850,864 177% 682.000 1) U.S. Dept of Homeland Security, Foan 1 -94, Non - Resident Arrival Records. 2) U.S. Dept of Commerce, Office of Travel 8 Tourism Industries, "Survey of International Air Travelers. Number of Visitors from the U.K. to CA, 2011 -2010 ri (in 000s) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: International Trade Administration, Office of Travel and Tourism Industries LM 752_ 765 R16 IN778 1 ■ . ■ ■ ■ ■ ■ ■ 1 I ME MENNEN 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: International Trade Administration, Office of Travel and Tourism Industries LM vi'.T ew- ort e(t rac,ii Due to President Obama's plan to streamline the process for foreign tourist visas to the United States, the increase in the number of visitors from China and Brazil has been in the double digits, respectively 60% and 18% in January 2012. These markets, especially China, will be a lucrative market for Visit Newport Beach Inc. to target due to their high spending potential, desire to travel to California and interest in high -end, luxurious products /services /destinations. Visit Newport Beach Inc. will use third -party consultants for both wholesale and public relations efforts. Its main objective will be to build awareness about Newport Beach and turn interest into actual visitors. A fully integrated sales and marketing plan is in development to reach these goals. • As the fastest - growing major economy in the world, China has become a high priority on the national travel agenda, with the Obama Administration vowing to increase Chinese (and Brazilian) visas by 40% this year. • China's GDP reached $7.5 billion in 2011, making it the world's second - largest economy and presenting significant opportunities for U.S. destinations. • According to China Tourism Academy's 2011 China Tourism Review, the country's outbound travel market generated 70 million passengers in 2011, a 22% increase over 2010. emerging market: China • The Chinese market is expected to generate over 100 million outbound passengers by 2015, with an average annual growth rate of 9 %. • China was California's fourth- largest overseas market in 2010, with approximately 401,000 visitors spending approximately $1.06 billion. • With its dream destination status and easy access compared to other U.S. destinations, California stands to benefit greatly from these growth trends, with 13.8% more Chinese leisure trips projected for 2011. Source: http7 /ftnnews.com/other -news/ 16468- intemati onal- visitat ion -t o-us -up- seven - percent -in -j anuary-2012. html California Travel and Tourism Commission M Vr,-= ei ort I 1 1 11 INc. The Future's Company — China's Challenges • China was California's fourth largest overseas market • Visitors to California from China during 2010 reported spending $149 per day during a 17.8 -night average stay, or approximately $2,652 per visitor. The average spending for all overseas visitors to California was about $1,209 ($107 per day; 11.3 nights in California). CHINESE ARRIVALS AT CALIFORNIA AIRPORTS • Ports -of -entry peaked in August and were the lowest in March and April. COMPARISONS WITH OVERSEAS VISITORS Compared to all overseas visitors to California, travelers from China are more likely to: • Travel to California for leisure /recreation /holiday purposes • Plan and book their air trip via a personal computer • Have longer trip planning • Travel with a spouse • Dine out, go sightseeing in cities, visit historical places, visit small towns, go to cultural heritage sites and tour the countryside while in the U.S. emerging market: China Visitors from China Year Total U.S. Arnvalst California Market Share' Visitors to California 051. 2000 249,441 59.6% 149,000 2001 232.416 67.9% 158.000 2002 225,565 53.0% 120,000 2003 157.326 44.9% 71,000 2004 202.544 49.8% 101.000 2OD5 270,272 `42% 146.000 2006 320,450 61.6% 197.000 2007 397.405 57.2% 227,000 2OD8 492.958 55.6% 274.000 2009 524.817 51.3% 269,000 2010 801,738 5D.0% 401,000 1) U.S. Dept of Homeland Security, Form 1 -94, Non - Resident Arrival Records. 2) U.S. Dept of Commerce, Office of Travel & Tourism Industries, "Survey of International Air Travelers." Residents of China Monthly Port of Entry Arrivals to CA - 2008 -2010 40.{00 30 000 20,000 19.003 �A,R - AJN Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec U -S. Department of Homeland Security, 1-94 Form; GIG Research, Inc. iD „* ewoort i t INC. Visitation Trends (Arrivals) emerging market: China Spending Trends (Exports) i Total Travel & Touiism Exports n $1,115 $1,534 2006 $2,071 $2,699 $3,614 $3,602 $5,005 2011 P $5,743 Change $4,628 Travel Receipts $894 $1,181 $ 1,642 $2,081 $2,717 $2,755 S3,780 54,252 $31358 Passenger Fare Receipts $221 $353 $429 $618 $897 $847 $1,225 $1,491 $1,270 Change ( %) in Total Exports 30 38 35 30 34 0 39 15 415 (p) Prel-iminary M = ewport INC. Information Sources Used for Trip Planning emerging market: China Main Purpose of Trip 99 ewoort INC, emerging market: China All Purposes of Trip Purpose of Trip (multiple re,,iponse--top 4 of 8) Leisure /Rec. /Holidays 2010 (Percent) 4:3 2011 (Percent) 52 Point Change (2) 9.3 Visit Friends /Relatives 37 40 2.6 Business /Professional 46 33 -13.6 Study /Teaching 15 17 2.3 Rented Auto 25 32 7.1 NET PURPOSES OF TRIP: 1 23 1 22 1 -0.6 Leisure & VFR 63 72 9.0 Business & Convention 49 37 -12.0 Transportation Used in the United States 6117 Transportation Types Used in United States (multiple response--top i of 8) Airlines in U.S. 2010 AL (Percent) 46 2011 (Percent) 47 Point Change (2) 0.9 Taxi /Cab /Limousine 36 37 1.4 Company or Private Auto 34 34 0.0 Rented Auto 25 32 7.1 City Subway /Tram/Bus 1 23 1 22 1 -0.6 6117 V I1�T ew,00rt j� / 11 INC. emerging market: China Activity Participation While in the United States Activity Participation While in the U.S. (muluple responsc-top 10 of 25) Shopping 2010 (Percent) 94 2011 (Percent) 87 PoW Change (2) -6.8 Dining in Restaurants 83 78 -5.9 Sightseeing in Cities 48 54 6.8 Visit Historical Places 45 53 7.6 Amusement/Thcmc Parks 33 36 2.6 Visit National Parks 24 '29 5.2 Cultural Heritage Sites 23 28 5.4 Art Gallery/Museum 19 25 6.0 Casinos /Gambling 19 24 5.0 Visit Small Towns 23 23 -0.1 Traveler Characteristics Advance Trip Decision Time (mean days) 2010 59 2011 65 Change (2) 6.3 days Advance Irip Decision Lime (median days) 35 40 5.0 days Prepaid Package 14% 19% 4.8 pts. First International Trip to the U.S. 40% 55% 14.7 pts. Length of Stay in U.S. (mean nights) 32.8 38.2 5.4 nights Length of Stay in U.S. (inedian nights) 13 11 -2 nights Number of States Visited (% I state) 50% 48% -2.3 pts Average Number of States Visited 2.0 2.0 0.0 states Hotel /Motel (% 1.I nights) 74% 760% 2.3 pts. Average 9 of Nights in Hotel /tMr otel 13.6 9.5 -4.1 nights Travel Party Size (mean 11 of persons) 1.5 1.6 0.1 Geuder: %Male (among adults) 77 "'O 62% -14.4 pts. Household Income (mean average) $67,400 $61,200 - $6,200 Household Income (median average) 544,100 $41,600 42,500 Average Agge: Female 36 35 -1.2 years Average Age: Male 39 37 -2.3 years 91 . s r ew ort r F F A C; FI ixr_ Visit Newport Beach Inc. works closely with the hospitality, merchandise, restaurant and nonprofit industries and is vital for the City of Newport Beach. Due to our relationships with the community, we act as the liaison between the hospitality industry, visitors and City Hall. In addition to sitting on many boards and committees, we are committed to growing tourism for Newport Beach through investing time, money and marketing efforts. New Community Relations Initiatives • Community Visits: In an attempt to promote our partners and sell their products /services better, the Visit Newport Beach Inc. staff will schedule outings at partner businesses. By doing this, the staff will be able to interact with partners, brainstorm on projects and learn more about unique selling points to help promote them to clients. • Extranet: Visit Newport Beach Inc. would like to provide partners access to their information on Visit Newport Beach.com. Partners will be able to update their listings, upload images, and add events to the website through Simpleview Extranet. A workshop will be conducted in the new fiscal year. Community Relations Activities • Annual Dinner: This annual event is organized as a recap of the year. It is the perfect opportunity for partners, city officials and other stakeholders to gather in one place to celebrate the tourism industry and see the accomplishments of Visit Newport Beach Inc.'s efforts. community relations • Educational Seminars: Visit Newport Beach Inc. will continue to produce educational seminars and workshops that provide a benefit to partners. The purpose of these sessions is to interact with our partners and provide them with valuable information about key trends, research and new knowledge. • Quarterly Member Mixers: Partners have requested additional opportunities where they can interact and network with industry colleagues and Visit Newport Beach Inc. staff. These mixers provide the opportunity to brainstorm and discuss possible ways to work together. In addition to networking, partners have the ability to showcase their businesses by providing the venue, catering or other relevant product/service. • Research and Economic Impact Study: Although Visit Newport Beach Inc. conducted research studies with Horizon Consumer Science, American Express' Business Insights and MMGY Global in the 2011/2012 Fiscal Year, it is important to constantly review research and economic impact studies. In the new fiscal year, Visit Newport Beach Inc. will conduct additional research to determine trends, economic forecasts and tourism indicators, as well as identify growth opportunities in the coming year. 92 VISI ewport Partner Engagement Partners of Visit Newport Beach Inc. receive several benefits that provide additional exposure through the following channels: • Marketing Collateral & Publications — Official Visitors Guide, Meeting Planner Guide, Great Stays Guide, Official Map and Visitor Kiosk Directories • Website and Mobile Application — categorical listings, photos, editorial copy and special offers • Social Media — additional exposure for partners, opportunity to participate in social media promotions • Public Relations — additional exposure for partners through press releases and media outreach • Photo Gallery and Video /113-roll Footage Access — opportunity for partners to use select images and footage to promote their business • Monthly Partner E- Newsletters — provides key information about Visit Newport Beach Inc., industry news, research, community events and opportunities community relations Community Event Partnerships Visit Newport Beach Inc. supports and strategically partners with businesses, organizations and events that assist in promoting Newport Beach as a travel destination with the purpose of increasing overall visitation. Sponsorship is activated primarily through cooperative advertising, public relations assistance, research, photography, social media support and exposure on VisitNewportBeach.com. These events may include but are not limited to: • Newport Beach Restaurant Week • Lexus Newport to Ensenada Yacht Race • Newport Beach Film Festival • 4th of July • Marriott Newport Beach Jazz Party • Summer Concert Series at the Hyatt Regency • Taste of Newport • Christmas Boat Parade 93 IVC ,fit i 1144 1 a - { A, A." RN t _ 'r. hospitality training Visit Newport Beach Inc. developed a Hospitality Training Program in the 2011/2012 fiscal year as a resource for key stakeholders in the Newport Beach community. Visit Newport Beach Inc. worked with the Newport Beach Police Department to roll out the first phase of the Hospitality Training Program to the police force in 2011- 2012. The next phase of this program will be to roll out a similar program to the fire department and lifeguards in 2012 -2013. Newport Beach is extremely proud of the first responders in Newport Beach. They are ambassadors of the city and provide an extremely high level of service to this community. The "WOW Service" is synonymous with Newport Beach, as we hope to continually exceed expectations. The program will be rolled out in the following phases and will be tailored to specific audiences. • Newport Beach Police Department (June -July 2012) • Newport Beach Fire Department and Lifeguards (2012 -2013 fiscal year) V_ The program will consist of the following elements: _tLr ` • Video Introduction Interactive Training Sessions • Visitor - Focused Pocket Guide • Refreshments k� T 3a t _ 'r. hospitality training Visit Newport Beach Inc. developed a Hospitality Training Program in the 2011/2012 fiscal year as a resource for key stakeholders in the Newport Beach community. Visit Newport Beach Inc. worked with the Newport Beach Police Department to roll out the first phase of the Hospitality Training Program to the police force in 2011- 2012. The next phase of this program will be to roll out a similar program to the fire department and lifeguards in 2012 -2013. Newport Beach is extremely proud of the first responders in Newport Beach. They are ambassadors of the city and provide an extremely high level of service to this community. The "WOW Service" is synonymous with Newport Beach, as we hope to continually exceed expectations. The program will be rolled out in the following phases and will be tailored to specific audiences. • Newport Beach Police Department (June -July 2012) • Newport Beach Fire Department and Lifeguards (2012 -2013 fiscal year) V_ The program will consist of the following elements: _tLr ` • Video Introduction Interactive Training Sessions • Visitor - Focused Pocket Guide • Refreshments k� T ewport I I1 \( IIINC. marketing goals 2012-2013 WEBSITE Unique Visitors 488,748 513,000 Web Visits 569,334 597,800 Total Page Views 1,870,031 1,963,500 Avg Time on Site 2:50 min 2:55 min Pages Per Visit 3.8 4.3 SOCIAL 5,000,000 10,000,000 Facebook Followers 36,179 41,000 Twitter Followers 8,702 9,500 YouTube Video Views 34,311 36,000 ADVERTISING N/A 1,200,000,000 Total Ad Impressions (print /digital /out of home) 98,000,000 100,000,000 Online Ad Clicks to Site 195,000 204,750 Online Cost 15 30 Per Click (Average) <$1.32 <$1.32 Travelocity 35 52 Bookings from website 100 105 COLLATERAL Visitor Guide 100,000 100,000 Visitor Guide CD 10,000 2,500 Visitor Guide USBs NA 2,500 Maps 10,000 100,000 marketing goals 95 2012-2013 RELATIONS PUBLIC Media Pitches Out 45 265 Partner Leads 7 40 Ad Equivalency (print/digital) $2,250,000 $2,600,000 Print Circulation 5,000,000 10,000,000 Unique Visitors (digital) N/A 300,000,000 Impressions (digital) N/A 1,200,000,000 Total Media Assists 100 150 Domestic Media Visits 15 30 International Media Visits 35 52 COMMUNITY • Community Partner Businesses 310 325 Partner Events 6 6 Wholesalers 22 27 AUSTRALIA Wholesalers 10 15 95 r ew ort FA( HiNc. INITIATIVES FOR FY2012/2013 Office Expansion: The Board of Directors of Visit Newport Beach Inc. has approved an expansion of office space to an adjacent suite to accommodate for future organizational growth. The expansion is expected to be completed by the end of August 2012. Business Unit Additions: Visit Newport Beach Inc. continues to strive to enhance and preserve the Newport Beach brand while marketing the city to leisure and business guests. We are in discussions with the City of Newport Beach to review the potential benefits additional business units within the organization would have to enhance the vision and mission of Visit Newport Beach Inc. as stated in the Strategic Plan. finance and administration fy2013 Organizational Growth Due Diligence: Visit Newport Beach Inc. works diligently when preparing analyses and research on programs or projects that have the potential to impact our core values and mission. Finance and Administration has the task of the due diligence process as it pertains to the financial stability and sustainability of new programs, as well as impact on budgets and cash flow. The next fiscal year will be focused on analyzing the organizational structure, financial statements and budgets of any potential additional business unit. 90 V1I IT ewport INC, fiscal year 2012 - 2013 TOT budget INCOME TOT Income ........................ ............................... $3,252,691 Partnership Income ...................................................... .4,000 Co -Op Advertising Income .................. ............................... 1,500 Event Hosting . ............................... ............................260 Annual Dinner .. ............................... ..........................6,500 $3,264,951 EXPENSE General Operating Expenses ............ ............................... $1,468,674 Advertising — Leisure .................. ............................... 1,094,000 Marketing — Leisure ............................ ........................702,186 $3,264,951 97 , rort [N, MARKETING BUDGET FOR FISCAL YEAR 2013 - DETAIL Leisure - Advertising ............................... 476,000 Local Event - Advertising ........................... 138,000 Media Promotions ............................... . .. 80,000 Non -Media Promotions .............................. 30,000 Agency Management ..------ ....2,000 Fees and Expenses . ............................... 150,000 Ad Production ............ .........................60,000 35,000 Creative Design /Development ................ . .... . ... 75,000 Contents /Consumer Promotions ....................... 25,000 Photography ............. .........................45,000 ............ 38,000 Other Contingencies ............................ .... 15,000 Total Agency Management 370,000 Community Relations A Research .. .............. ....................... 10,000 Trade Shows ............. ..........................8,000 6,100 Community Partner Events ............................ 25,000 Annual Dinner ............. ........................105,000 2,500 Awards ................................ ..------ ....2,000 Video ................... .........................25.000 3,000 Promotional Items ......... .........................20,000 35,000 VNB Inc. Events ...................... . ............. 21,000 Hospitality Training ... ............................... 18,000 Memberships .......................... ............ 38,000 Total Community Relations 272,700 TOT budget Collateral Mini Maps ... ...................................... 5,000 Calendar of Events .... ............................... 6,100 Wedding Guide ....... .............................. 10,000 Community Report ... ............................... 2,500 Marketing Plan ........... . .......................... 4,200 Partnership Packets ...... . .......................... 3,000 Collateral Shoot Expenses ............................ 35,000 Collateral Distribution . ............................... 30,000 Total Collateral 95,800 International Marketing Consulting Fees ... ........ ............ ............. 62,500 Media/Travel Relations ............................... 10,000 Promotions. . . . .................... ....... ...... 40,000 Trade Shows ............. ..........................4,000 6,000 Travel Expenses. . .................................. 14,500 Business Meals / Entertainment .......................... 6,000 Promotional Items ......... ..........................4,000 6,000 Total International Marketing 141,000 Online Marketing Email Marketing ...... ............................... 3,000 Website Maintenance . ............................... 12,000 Online Search Advertising ............................ 42,000 Digital Advertising .... ............................... 6,000 Online Contests /Promotions ........................... 3,000 Mobile Application ... ............................... 10,000 Consulting Fees ...... ............................... 6,000 Website Redesign ................ . ................. 55,686 Total Online Marketing 137,686 Public Relations Media Services ...... ............................... 26,000 Media FAM Tours ..... ............................... 7,000 Promotions. . ............................. ......... 6,000 Consulting Fees. . . ................................. 10,000 Speaker Fees ............. ..........................6,000 Total Public Relations 55,000 tiR? v-S,T Cyyi70it A C H INC. F IL r conference sales (TBID) Aft Fw ewport MARKETING & BUSINESS PLAN 2012 -2013 Conference Sales Overview The conference sales department of Visit Newport Beach is responsible for representing and managing the organiza- tion's conference, meeting and group -sales efforts. The department works with industry partners to help increase overall market share of the meetings market and, in turn, generate additional revenue to help grow the Newport Beach hotel and tourism industry. Visit Newport Beach Inc. targets meeting planners, associa- tion executives and other decision makers and influencers in several geographic and vertical market segments (cor- porate, state /regional associations, national associations, government, religious, sports events, medical, education, etc.) to generate hotel room nights, delegate spending and other meetings - related revenue. Business will be solicited through direct -sales efforts to existing markets, as well as emerging vertical and geographic market segments. As a specialized economic development agency for Newport Beach, Visit Newport Beach will position and alter strategies as necessary to pursue future conference and meeting business. Conference Sales Initiatives • Building and driving an active pipeline to ensure the room -night conversion opportunities to meet and exceed team goal for the 2012 -2013 fiscal year. • Maintain momentum of "Live the Dream" campaign, a national promotion across all market segments to gener- ate interest in Newport Beach as a meeting destination • Continue focus on delivering outstanding client events and destination experiences in Newport Beach for new and existing clients and TBID partners, creating valuable conference sales (TBID) face time to connect with one another. • Enhance exposure to targeted clientele through partici- pation in appointment -based shows, in market sales calls and a select few premier trade shows. • Seek additional opportunities to provide potential clients with compelling sponsorship and incentive packages. • Advance our relationships with HelmsBriscoe and ConferenceDirect through our destination partnership and annual conference participation, targeting associates who plan programs in our area. Conferences Sales TBID Communication Visit Newport Beach Inc. meets with hotel sales leaders to maintain open lines of communication. Valuable information is provided to the TBID hotels regarding all sales - related func- tions, production, forecasts, strategies and cooperative op- portunities. Communications include the following elements: • Quarterly Director of Sales meetings, including the sales leadership from TBID hotels and the sales team from Visit Newport Beach to discuss all relevant sales - related issues, including production, forecasts, strategies, mar- keting and cooperative opportunities. • Monthly General Manager reports, including critical sales activities, room -night production and pace, economic impact calculations and monthly highlights. • TBID Committee meetings as necessary throughout the fiscal year to discuss sales goals and production. m rc g�ort I1 \ l II INC, Conference Sales Market Segments Regional Markets: • Continued focus on markets, including California State Association, National Association, corporate and incentive groups, as well as third -party suppliers such as Confer - enceDirect, HelmsBriscoe, Experient and SmithBucklin & Associates, with a strong emphasis on California. • Colorado, Texas, Florida, Pennsylvania and Canada have been targeted as potential growth markets for Newport Beach and will be pursued accordingly. • Ongoing development of the National Association market in the greater Washington, D.C., area will continue to be an area of emphasis. Conferences Sales Deployment Michelle Donahue, Director of Sales • Strategic business development, administrative manage- ment of department, empowerMlNT oversite Amanda Kliem, National Sales Manager • Los Angeles, Colorado, Nevada, Utah, New York, Northeast U.S., Washington DCNA/MD. Bette Haddock, National Sales Manager • Orange County, Midwest states, and Western Canada Hillary Burton, National Sales Manager • All California State associations and Pacific Lori Hoy, National Sales Manager • San Diego, Arizona, Texas and Southeast U.S. Research /Account Development Manager (Open) • This position will be working closely with sales managers to prospect and qualify new sales opportunities. Erin Stapley, Sales & Research Coordinator • Coordinating trade shows, economic impact calculator, and empowerMlNT oversite conference sales (TBID) CLIENTS EVENTS, SALES MISSIONS AND TRADE SHOWS • Developing and expanding client relationships through consis- tent communication and contact • Customized destination familiarization experiences designed to support the TBID hotels in extending their reach to key custom- ers and influencers. • Leverage our DMO partnership to ensure market share with port- folio accounts by HelmsBriscoe and ConferenceDirect. Hosting one internal sales meeting for each for 50 -75 associates from the Western Region. In addition, multiple sales managers will attend HelmsBriscoe and ConferenceDirect annual conferences to con- nect with their associates in our key markets. • Sales trips to include our TBID hotel partners into markets including Los Angeles, San Diego, Sacramento, San Francisco, Seattle, Denver, Dallas and Washington, D.C. • Participation at appointment - based, hosted buyer events such as SMART MART, Meetings Focus Live, Meeting & Incen- tive Forums and COLLABORATE marketplace and a select few trade shows. In addition, remaining consistently active in our local /regional chapters of MPI, SITE and PCMA 101 V]SIT ewport 1 , ( I Ih'G DUFFY BOAT ACCESS The Newport Harbor is a unique selling point that helps Newport Beach shine over other destinations. Duffy Boat access provides our sales team the opportunity to showcase our beautiful harbor to potential meeting clients. Hotel partners are encouraged to join us as well when appropriate. Our TBID hotel partners also have this amenity available upon request for their own clients outings. Newport Beach embodies the essence of coastal Cali- fornia living, and no element of that experience makes it more ideal than a Duffy Boat tour of stunning Newport Harbor. RESEARCH AND MEETINGS, LEAD GENERATION CVent Destination Guide Cvent, established in 1999, is the largest event management software in the United States. Two years ago, they began partnering with DMOs from around the country with their online destination guide. Their presence is noticed by over 100,000 visitors a month. So far in 2011, Orange County has seen over 2,600 requests for proposal (RFPs) from Cvent. We want to capture as many of those as possible by highlighting the destination in their online guide. The cities with upgraded listings are receiving on average of 20 times more RFPs than those with the basic listing. Upgraded listings represent about 15% of the search results in O.C. but are receiving about 70% of the RFPs. The Diamond listing package offers Visit Newport Beach Inc. a "copy CVB" button on the RFP page. empowerMlNT empowerMint is a DMO exclusive database, with over 40,000 meetings from 20,000 organizations. This is an "owner- operated" database that is strengthened each day by additional bookings and histories from over 150 DMOs. Over 50% of the meetings in the database have less than conference sales (TBID) 200 rooms on the peak night, making it a valuable resource for second -and third -tier cities. empowerMlNT provides the Visit Newport Beach Inc. sales team with abundant oppor- tunities to search and query for more intelligent prospecting, which translates to better customer communication and more room nights. HelrsBriscoe Valued Partnership With over 1,200 associates worldwide, HelmsBriscoe is the global leader in meeting procurement. The HelmsBriscoe Destination Partnership Program was launched in 2010 and follows the success of the company's Hotel Partnership Program. This program is designed to combine the power of the HB network with the power of the destination (DMO) The Destination Partnership Program allows Visit Newport Beach Inc. to increase destination awareness within the HelmsBris- coe worldwide network. Benefits include preferred listings and enhanced information within all HelmsBriscoe channels, registration for their annual business conference, access to all HelmsBriscoe offices, access to analytics and opportuni- ties for HelmsBriscoe FAM and event opportunities. ConferenceDirect Partnership ConferenceDirect is a premier site selection, contract negotiation, conference, meeting and housing management leader in the hospitality industry. They book 8,000+ events and over 2,700,000 room nights annually. Visit Newport Beach enjoys an upgraded partnership with ConferenceDirect, resulting in many direct benefits, including. Increased web presence and awareness for all CD associates, registration for two sales team members at the CD Annual Partner Meeting, increased electronic outreach to CD associates and increased access to CD senior leadership and management team. 102 VISIT ewport (H L A C Ii i,,c. Hoovers Online Subscription Hoovers online subscription gives Visit Newport Beach and our TBID partners access to millions of companies and the people behind them, company and industry profiles and new trends and opportunities. The software allows users to build and export tar- geted lists for sales trips and prospecting. The Visit Newport Beach membership includes accounts for each of our TBID hotels. Knowiand Group Knowland Group is the world's largest hotel field research ser- vice. VNB has contracted for reader board service for three iden- tified hotels: Hilton Costa Mesa, L'Auberge and Marriott Laguna Cliffs. In addition, with an upgraded package, staff can access the extensive Knowland Group database called Insight. Insight contains a detailed profile of all accounts that have ever been captured in their national reader board program, including the group's industry, website and current contact information, as well as their basic specs and complete Knowland history. Searches are available through Insight using any number of criteria. SITUATIONAL ANALYSIS The Southern California lodging market is supported by sound fundamentals, although they were sorely tested in the recent past, as the worldwide recession and following economic cer- tainty negatively affected hotel demand and revenues. South- ern California as a destination remains one of the most visible and popular regions in the United States. The region has been a thriving economic powerhouse with technology and biotech, apparel manufacturing, shipping and freight, creative and financial services, aerospace engineering and manufacturing and entertainment production, providing the area with a large base of commercial- demand generators. Favorable climate, hundreds of miles of pristine beaches, world -class theme parks and unparalleled dining and shopping make conference sales (TBID) Southern California a popular leisure destination for travel- ers from around the country and around the world. Cities like Los Angeles, Anaheim, San Diego and Long Beach also boast state -of- the -art convention centers that draw large group meetings from both coasts to Southern California. The Southern California lodging market experienced a period of great expansion between 2004 and 2007. Increasing room rates did not deter visitors and occupied room nights increased in almost all of the submarkets included in this forecast. Much of this demand was discretionary, with dramatic increases in incen- tive travel and other nonessential, high -end room -night book- ings. However, as the economy slowed throughout the course of 2008, declining dramatically in the fall, much of this nonessential travel dropped off, as business people and meeting planners be- came more concerned with watching costs. These trends con- tinued further throughout 2009, with declining economic growth, historically high unemployment levels, declining home values and depressed consumer confidence. Fortunately, though, it appears that the worst is now behind us, as the hotel industry performed much better than expected in 2010 and into 2011. In looking forward, there is cautious optimism about the region's economic recovery. Lodging fundamentals are projected to remain positive. The industry is anticipated to benefit from continued growth in corporate profits, international visitation, personal income growth in the professional ranks and limited new -hotel supply. In 2011, the Southern California lodging market as a whole is seeing the demand for hotel rooms increase from 2010 levels, with a number of submarkets estimated to return to, or surpass, peak 2007 occupancy levels. Therefore, the forecast is that 2012 will be a year of strong average daily rate growth as markets focus their efforts on recapturing rate lost during the economic downturn. 'Source: California Lodging Forecast 2012 - PKF Consuffing 103 T ew ort �� F A C H IN¢:. COMPETITIVE ANALYSIS lG1ll- 1 il=I1i I Anaheim Garden Walk Hotel Project Approved The development and construction of two new high -end ho- tels with a total of 866 rooms in the Anaheim Resort District will break ground by May 2013 and rooms will open at the end of 2015. Great Wolf Resorts Water Park Hotel Comes to O.C. Slated for completion in 2013, Great Wolf Resorts, Inc.® will develop a Great Wolf Lodge® water park resort in Garden Grove. The project, located about one mile south of the Disneyland® Resort, will offer guests a 10 -plus story, 600 -room hotel containing 30,000 square feet of meeting space and its own attached water park. Disneyland® Hotel Renovations The Disneyland hotel recently underwent major renovations, including a new pool, dining area and water play area with Monorail - themed slides (completed summer 2011). Disney California Adventure Park Billion Dollar Renovation June 15 was grand reopening of Disneyland Resort's ex- panded and reimagined California Adventure. A few high- lights: The entrance with the huge letters spelling out "CALI- FORNIA" was gutted and completely rebuilt with a 1920s look. The Golden Gate Bridge for the monorail overpass was removed. Shop facades in the main street area were redone to reflect a 1920s San Francisco look. An new 12 -acre area themed to the Disney /Pixar movie "Cars" features a huge storyboard thrill ride called "Radiator Springs Racers" which uses the same ride system as (Florida) EPCOT Center's conference sales (TBID) Test Track ride. The $100 million dollar "Voyage of the Little Mermaid" ride replaces the Golden Dreams Theater (think of it as a haunted mansion -style ride, but on a MASSIVE scale, HUGE budget, and with modern -day animatronics). Anaheim Convention Center Grand Plaza Approved Developing just outside the Anaheim Convention Center is a 100,000- square -feet, $20 million multipurpose venue space called the Grand Plaza. This much - anticipated, vibrant outdoor space will feature lush landscaping, ex- pansive walkways and dramatic water features and will be perfect for meetings and special events. Preliminary plans have been evaluated for the sixth expan- sion of the Anaheim Convention Center, which would add significantly more meeting and exhibit space to the already 1.6 million- square -foot center. The expansion would include an additional 250,000 square feet of space for exhibits and meetings, with an estimated 1,500 parking spaces. Overall, the expansion aims to attract higher- tiered convention busi- ness meetings in the national convention market. The con- vention center expansion is expected to break ground in the beginning of 2013 and be completed by the end of the same year. In addition to the expansion, beginning in January 2013 the center will offer complimentary wireless Internet service to all attendees, giving it a competitive advantage, as it will be the first convention center in the western region of the U.S. to offer complimentary Wi -Fi throughout the facility. Honda Center Begins (Extensive Improvement Project Anaheim Arena Management, LLC, the management com- pany for Honda Center, broke ground on a series of new major developments. Among the many new amenities will be an impressive 12,000- square -foot Grand Terrace. Also new to the venue will be a 250 -seat, full - service restaurant, 104 - T ew ort �� [ A C H ivc. which will be open to the public for all events, featuring an extensive menu and enhancing the atmosphere for every event at the arena. The Anaheim Ducks Team Store will also expand from 1,800 to 4,200 square feet. The Ranch Restaurant & Saloon Now Open in Anaheim The Ranch Restaurant & Saloon is a new 20,000- square- foot restaurant and wine cellar with an adjacent saloon that features live country music. The Ranch offers a gourmet menu, impressive wine offerings and a beautiful ambiance. The adjacent Saloon has state -of- the -art lighting and sound, in addition to a fully stocked bar. The Grove of Anaheim Adds 'City National' to its Name The Grove of Anaheim added the City National brand to its name in 2011 and is now known as "City National Grove of Anaheim." Indoor Soccer Returns to Orange County With Anaheim Bolts The newest professional sports team in Southern California, Professional Arena Soccer League's (PASL) Anaheim Bolts, brought indoor soccer back to Anaheim after an absence of more than 10 years. Citadel In May 2011, the Citadel Outlets LA Outlet Express shop- ping shuttle began for Anaheim hotel guests. This daily transportation service takes visitors to more than 115 dis- count designer stores. The Block at Orange Renamed As "The Outlets At Orange" The Block at Orange was officially rebranded as The Out- lets at Orange, signifying its distinction as the only outlet and value retail destination in Orange County. As part of the conference sales (TBID) transformation, a popular mix of designer name -brand outlet stores, including Nordstrom Rack, Calvin Klein, Banana Republic, DKNY Company Store, Tommy Hilfiger Company Store, Perry Ellis and Original Penguin, were opened. ARTIC Coming Soon to Anaheim The Anaheim Regional Transportation Intermodal Center (AR- TIC) continues to move forward. In January 2011, the ARTIC project was allocated $29.2 million to fund construction. The project will be an iconic transportation facility where people will seamlessly move between transit services to reach Southern California activity centers and business districts. COSTA MESA Segerstrom Center for the Arts in Costa Mesa Segerstrom Center for the Arts in Costa Mesa, Orange County's world -class performing arts facility, celebrates its 25th anniversary in 2012 with a stellar lineup of innovative entertainment, Broadway productions and spectacular musical offerings throughout the year. South Coast Plaza New openings at South Coast Plaza for 2012 include Anthropologie, Diane von Furstenberg, Jaeger- LeCoultre, Roger Vivier and Vacheron Constantin. Costa Mesa to become "City of the Arts" The Costa Mesa Conference & Visitor Bureau in an effort to create an identity for the city is branding Costa Mesa as the "City of the Arts." "Costa Mesa takes center stage in Orange County with an internationally acclaimed arts and theater district. With some of the finest visual arts installations and performing arts venues in the world, it's easy to see why Costa Mesa is known as the City of the ArtsTM " i [117 T port W cu In addition to the Segerstrom Center for the Arts, Costa Mesa is host to the world- renowned Barrett Jackson Collec- tor Car Auction each June. The city has also added a new community event at the Fairgrounds, the Orange County Taste Festival, in conjunction with the OC Marathon. HUNTINGTON BEACH Hyatt Regency Huntington Beach Resort & Spa Finishes Renovations The Hyatt Regency Huntington Beach Resort & Spa recently underwent a $6 million renovation to transform all 517 guest rooms with a new design scheme that introduced an upscale beach - influenced vibe that embodies the chic simplicity and geographic beauty of Southern California. 1:01 Irvine's Great Park Continues Development The Orange County Great Park, with its 1,347 -acre mas- ter plan, is the focal point of the redevelopment in Irvine. A $70 million development plan to expand the park to more than 200 acres is currently underway and will in- clude a sports park, a 114 -acre agricultural area and an art and culture exhibition space. The sports field expan- sion will triple the number of soccer fields in Irvine that comply with major statewide and regional tournament guidelines, with the intent to host large soccer events to provide weekend room nights to area hotels. New Courtyard by Marriott A new 155 -room Courtyard Santa Ana at John Wayne Airport property opened in May 2012. conference sales (TBID) LOS ANGELES Continued Development of L-A. LIVE District The 1,001 -room Convention Center Hotels, consisting of the 878 -room JW Marriott and the 123 -room Ritz - Carlton, were completed and opened on February 15, 2010, and April 2, 2010, respectively. With the sports and entertainment district coming online and other cultural icons still being constructed, downtown Los Angeles is able to draw visitors from all across Southern California and the world. Coupled with the creation of a viable residential base, downtown Los Angeles is steadily becoming a place that can sustain its own leisure and group segments. Temporary Decrease in Hotel Supply Supply in 2012 is forecast to experience a 14.4 percent de- crease, as the Wilshire Grand closes for demolition to make way for redevelopment of the site, including a new first -class hotel, along with office, retail and residential components. Metro Rail Line Visitors and residents alike can already Go Metro and go everywhere in Los Angeles. The public transit options will expand even further with the opening of the Metro Expo Line, which will bring light rail to the Exposition Corridor, with 12 stations serving popular destinations like LISC, Exposition Park, the Mid -City Communities, the Crenshaw District, Culver City and West Los Angeles. Phase 1 of the line travels from downtown L.A. to Culver City, and Phase 2 will extend the line out to Santa Monica. Civic Park Scheduled to open in the summer of 2012 in downtown L.A., Civic Park will stretch from Grand Avenue at the Music Center to Spring Street at City Hall. The 12 -acre park will have four 106 ew ort distinct areas, featuring the restored Arthur J. Will Memorial Fountain, an intimate performance lawn, a community terrace and a grand event lawn. The new Civic Park allows for a strong visual and physical connection from Grand Avenue via a series of stairs, accessible ramps and sloped walks, as well as a new elevator to invite more pedestrians into a vibrant garden envi- ronment, a gathering place that will bring together Angelenos from all walks of life in a welcoming and distinctly urban oasis. The Broad Los Angeles will welcome a new public museum of contem- porary art in 2013, when The Broad opens on Grand Avenue in downtown L.A. The stunning design by Diller Scofidio + Renfro creates a 120,000- square -foot, three -level facility and will include 50,000 square feet of gallery space on two floors, a lecture hall for up to 200 people and a public lobby with display space and a museum shop. The museum's exhibi- tion programming will focus on the contents of the renowned contemporary art collections of Eli and Edythe Broad, encom- passing 2,000 artworks by more than 200 artists. LONG BEACH Long Beach Airport (LGB) is often seen as an excellent alternative to other regional airports. The Long Beach Airport modernization project was approved in 2010. The $136 million renovation project will modernize the airport while maintaining its art deco,vintage appeal. Plans include a new 1,989 -space parking structure, ramp improvements, a concourse with a central garden, and 11 gates to replace temporary passenger waiting trailers. Approximately $2 million will be spent in refur- bishing the terminal. The airport will maintain its open feel, with passengers boarding planes directly from the tarmac. conference sales (TBID) PALM SPRINGS Saguaro Palm Springs The Saguaro Palm Springs (a Joie de Vivre property) opened its doors at the beginning of the year, as bright and colorful as promised. The hotel is a conversion of an old Holiday Inn (originally built as the International in 1977); the architecture and color are courtesy of New York -based Stamberg Aferiat Architecture. The Saguaro has 245 - rooms, 7,500- square- feet of meeting space, a pool, two whirlpools, a spa "with a menu of indigenous treatments," a fitness center, a restau- rant and two bars. Sunnylands Sunnylands, the winter home of Ambassador Walter and Leonore Annenberg, occupies more than 200 acres in Ran- cho Mirage. Designed by architect A. Quincy Jones, one of the pioneers of midcentury modern architecture, the 25,000- square -foot, midcentury modern house was com- pleted in 1966 in the heart of landscaped grounds, includ- ing a private golf course. The Annenbergs hosted six U.S. presidents, international political figures and British royalty, as well as cultural and entertainment legends. Opened in February, Sunnylands is a free public attraction incorporat- ing a visitor center, desert garden, and other 21 st- century environmental upgrades on the extensive grounds. Visitors to the Sunnylands Center & Garden can enjoy exhibits, films and interactive multimedia kiosks; relax in the great room with a spectacular view of Mt. San Jacinto, and enjoy a cafe and store. Group tours available. 107 I T e�l'L/{lort A f; , Jr 1- A ( ".. tI Inc. SAN DIEGO NORTH COUNTY New Courtyard The new Courtyard by Marriott Oceanside, a140 -room, limited - service property, opened in December 2011. Hilton Carlsbad Oceanfront Resort & Spa Opening in summer 2012 in San Diego's North County, the Hilton Carlsbad a full -scale oceanfront resort with a California Craftsman design. The resort will offer 215 rooms and suites and 25,300- square -feet of indoor, outdoor and pre- function meeting space, including an oceanview garden. Other ameni- ties will include Chandler's Restaurant & Lounge, the resort's signature oceanview restaurant, a fitness center, free -form pool and 5,000- square -foot spa. Legoland Hotel Legoland California Resort in Carlsbad recently announced the summer 2013 opening of the LEGOLAND(R) Hotel. The three -story LEGOLAND Hotel will provide guests the interactive family experience that has brought success to LEGOLAND California, as well as bring children's imagi- nations to life. The 250 -room LEGO @ - themed hotel will feature brightly colored LEGO decor, a pool area and restaurant. LEGOLAND Hotel will be the first of its kind in North America. Construction began in November 2011. conference sales (TBID) DOWNTOWN SAN DIEGO North Embarcadero Visionary Plan In January 2012, Phase I of San Diego's $28.6 million North Embarcadero Visionary Plan broke ground. This two -year beautification plan includes a complete overhaul of the North Embarcadero waterfront district along San Diego Bay in downtown San Diego, including the construction of the new Ruocco Park, near the intersection of Pacific Highway and Harbor Drive. The Hilton San Diego Resort & Spa The Hilton San Diego Resort & Spa on Mission Bay is cele- brating 50 years of excellence in servicing groups and meet- ing planners by launching a teambuilding program within its more than 25,200 sq. ft. of meeting space and 18 acres of lush tropical landscaping. The resort's ice breaker programs like "MapOuest" and "Tiki Test" encourage meeting groups to work collaboratively and creatively to brand maps, puz- zles and team masks. Other teambuilding exercises include scavenger hunts and boat races in and around the resort's private beaches and marina, along with off -site excursions into Old Town San Diego and Temecula Valley's prized wine country. The resort has created an array of programs that can be tailored to meet each group's needs. EW T ew ort � LAC° F'1 wc. AIRPORT DEVELOPMENTS ORANGE COUNTY /JOHN WAYNE AIRPORT The $543.1 million Airport Improvement Program at John Wayne Airport includes the addition of a 282,000- square -foot third terminal, Terminal C, and features more parking, conces- sion and retail offerings. marketing for conference sales (TBID) HMSHost has brought several new food and retail options to John Wayne Airport, such as Ruby's Diner, Jerry's Wood - Fired Dogs, Zov's Bakery and Cafe, Pei Wei Asian Diner, Pinkberry and more. John Wayne Airport has also partnered with FreeFi Networks to provide free wireless internet ac- cess to passengers throughout the airport. SAN DIEGO AIRPORT Japan Airlines (JAL) recently announced the launch of a new direct flight between Tokyo /Narita and San Diego start- ing in late 2012. Plans are to begin with four flights a week starting in December 2012, then increase to daily flights beginning in March 2013. The new service will be JAL's first -ever nonstop flight between San Diego and Asia. The San Diego -to -Tokyo route will also be the first Dreamliner (Boeing 787 -8) service into Southern California. Alaska Airlines recently announced it is adding daily non- stop service from San Diego to Monterey and Santa Rosa and twice -daily service to Fresno. The new flights to Mon- terey and Fresno began June 4, 2012, while service from San Diego to Santa Rosa began June 5, 2012. In September 2011, Spirit Airlines increased its service be- tween San Diego and Las Vegas, Nev., to three flights daily. Effective December 15, 2011 -April 15, 2012, United Airlines is providing a seasonal route between San Diego and Mammoth. MARKETING FOR CONFERENCE SALES (TBID) The Conference Sales team is well supported by the Visit Newport Beach Inc. Marketing Department. The focus of the Marketing Team in 2011 -2012 was to build a strong foundational campaign to promote Newport Beach as the "dream" destination for conferences, meetings, and events. The elements that were implemented in 2011- 2012 include: • New Meeting Planner Guide (print and digital) • New map of Newport Beach • Group Dining Guide • New advertising campaign • New trade show booth and pull -up banners • Integration of new advertising campaign into website, stationary, and promotional items • "Live the Dream" Sweepstakes Campaign (creative, execution, website landing page, and video) • New trade show video and meetings sizzle reel for Newport Beach ADVERTISING OBJECTIVES AND POSITIONING With this foundation in place for 2012 -2013, the confer- ence sales team can allocate greater resources toward the advertising strategy and media buy. Not only will it be streamlined to very targeted audiences with an empha- sis on the "Live the Dream" Sweepstakes and Newport Beach as a "dream destination," but also it will reach the following objectives. fbk] ewport t� A( H ehc. Objectives: • Clarify Newport Beach's market position in the meet- ing and event industry relative to its competitors • Generate more Requests for Proposal (RFP) • Convert leads and RFPs into definite bookings marketing for conference sales (TBID) Unique Selling Propositions: • Year -round Mediterranean weather. • Convenient and easily accessible location. • Newport Beach is the only coastal O.C. city with direct access to John Wayne /Orange County Airport, which offers more than 250 daily nonstop flights to 22 destinations in the U.S., is only six miles to the center of Newport Beach. Or fly into Los Angles International Airport (LAX), only an hour's drive away, or Long Beach Airport, situated midway between Los Angeles and Orange County. • New and improved hotel product. • Each of the eight full - service hotels in Newport Beach have undergone extensive renovations or sought improvements, infusing the city with a fresh new glow. More than $125 million invested in recent renovations reflects the city's commitment to improv- ing the experience and quality of product available to the visitor. • Inspiring offsite venues. • Beyond the 170,000 square feet of Newport meet- ing space available at hotels, other unique meeting venues include yachts, waterfront ballrooms, seaside restaurants, golf course clubhouses and more. Destination Specific: • Eclectic mix of neighborhoods • Charming seaside village • World's largest small — yacht harbor • World -class dining, shopping and a myriad of out- door activities. MEDIA STRATEGY Target Audience • Event and meeting planners at corporations and associations • Regional Markets • Los Angeles, CA; Washington DC; North East, United States; Canada; Utah; Colorado; Nevada • Northern CA; Pacific North West; Hawaii /Alaska, California State Associations • Orange County, CA; Midwest; Insurance; Pharmaceutical • San Diego, Arizona, Texas and Southeastern US Media Mix • Sponsorships trade shows participation • Online Ads • Print Ads Sample Publications Predominantly focused on online advertising, print ads and advertorials, the lineup will include: • California Meetings & Events • Corporate & Incentive Travel • Meetings Focus West • MPI - Meeting Planners International • Smart Meetings • Successful Meetings 110 r eVort r n ( ti ihc. marketing for conference sales (TBID) PROMOTIONS — "LIVE THE DREAM" SWEEPSTAKES In an effort to generate more RFPs and convert them into definite bookings, Visit Newport Beach Inc. developed a "Live the Dream" Sweepstakes in 2011. Due to the success of last year's program, Visit Newport Beach Inc. rolled out another "Live the Dream" Sweepstakes for 2012. Promotional Dates: February 13, 2012 to December 31, 2012 Winner Announced: On or about January 15, 2013 How to Enter: To enter, go to www.visitnewportbeach.com /dream and follow the online instructions to submit an online RFP. Submission is free and there are three ways to enter. 1. Submit your RFP online 2. Contact your regional Visit Newport Beach Inc. sales representative 3. Mail -in Prize Package: 1. We'll send you a $100 Nordstrom gift card just for sub- mitting a qualified RFP to a Visit Newport Beach Inc. sales representative. 2. Book an event sourced through Visit Newport Beach Inc. and you'll receive a $250 American Express® gift card. 3. Plus, you'll automatically be entered in our "Live the Dream" Sweepstakes for a chance to win a luxury Newport Beach getaway, including: • Airfare for two • Seven day, Six night beach house rental • Luxury car rental from Beverly Hills Rent -A -Car • Dining experience on a Hornblower private yacht • Duffy boat tour of the Newport Harbor • Free spa, golf, dining, shopping ... (These will be provided as gift certificates once we know the winner's preferences) Marketing Elements: • Landing Page - www.visitnewportbeach.com /dream • Customized Flyers • Multifold Brochure • Pull -Up Banner • Print and Online Ads • E- Communication • Trade show Presence 111 s * ewport PUBLIC RELATIONS FOR MEETINGS & EVENTS Objectives: • Clarify Newport Beach's market position in the meet- ing and event industry relative to its competitors • Promote the destination through its unique selling proposition. • Generate more Requests for proposal (RFP) marketing for conference sales (TBID) Unique Selling Propositions: • Year -round Mediterranean weather • Convenient and easily accessible location • Newport Beach is the only coastal OC city with direct access to John Wayne /Orange County Airport, which offers more than 250 daily nonstop flights (including new low -cost carrier Virgin America) to 22 destina- tions in the U.S., is only six miles to the center of Newport Beach. Or fly into Los Angles International Airport (LAX), only an hour's drive away, or Long Beach Airport, situated midway between Los Angeles and Orange County. • New and improved hotel product. • Each of the eight full - service hotels in Newport Beach have undergone extensive renovations or sought im- provements, infusing the city with a fresh new glow. More than $125 million invested in recent renovations reflects the city's commitment to improving the expe- rience and quality of product available to the visitor. • Inspiring offsite venues. • Beyond the 170,000 square feet of Newport meeting space available at hotels, other unique meeting venues include yachts, waterfront ballrooms, seaside restau- rants, golf course clubhouses and more. • Destination Specific: • Eclectic mix of neighborhoods • Charming seaside village • World's largest small yacht harbor • World -class dining, shopping, and a myriad of outdoor activities. Tactics: Through the various destination and meetings media channels, the public relations objectives directly align with the objectives of the overall marketing team with the following tactics: • Campaign Development • Press Release Writing • Media Pitching to Industry Publications • Photo Submissions of Sales Team Activities for Placement in Trades • Video Production • Copywriting • Third -Party Experts • Host Media Visits for Journalists and Other Trade Media o 112 _4 wort ONLINE FOR MEETINGS & EVENTS marketing for conference sales (TBID) The Conference Sales Team is supported with digital marketing in conjunction with other traditional marketing, to bring awareness and information while promoting the TBID properties. Through channels such as the website, social media, e-mail and online advertising, a comprehensive digital plan will promote conference sales and help spread awareness of the destination and its offer- ings. These goals are reinforced by the following efforts: "Live the Dream" Promotion Facebook landing tab - Cross - reference social channels to link and spread conference services message. Online RFP submission - Make request for proposal an easy online experience for planners. Digital advertising - Supplement messaging with online digi- tal banner and paid search ads for "Live the Dream." Video collateral dissemination - First -year winner video and contest overview videos on YouTube, web pages and meet- ing- direct sites. Email Create specific e- blasts to promote both "Live the Dream" promotions for each individual sales representative, plus TBID inclusions in the consumer monthly e- mails. Partner with industry- specific online publications to cross - reference databases. Work with show partners to send dedicated a -mails to en- courage them to Visit Newport Beach at that specific show. Leverage third -party lists to target conference planners in new markets. Banner Ads Targeted display ads on conference and meeting - specific industry websites. Incorporate video -ad placements for more dynamic ads and look into pre /post video advertising. Paid Search Target conference space keywords on Google Search Ads to show results that lead to the visit newportbeach.com meetings section. Social Media Although primarily for a consumer - targeted audience, we will be able to leverage social media channels to cross - promote conference space messaging with Face - book RFP applications. Create more robust presence for Visit Newport Beach Inc. on networking sites such Linkedln and work with sales representatives on better utilizing digital channels such as this. Create vanity URL for print and digital communications to link over to conference - specific social pages for both general and individual representative items. Mobile Develop a destination mobile application that will allow Visit Newport Beach Inc. to send push notifications to a user base with offers and information on each TBID property. Use as an additional tool for meeting planners and confer- ence attendees to navigate locally and to plan before arrival. Look at new ways of dynamically presenting meeting space venues with 360 - degree tours for mobile and tablet devices. 113 1!11T eWport ,N,C. TBID BUDGET FOR FISCAL YEAR 2013 TBID Income ......................... 1,634,903 Overhead Operating Expenses Salaries ........ ........................891,062 12,000 Office Lease ..... .........................77,432 10,800 Insurance ....... .........................12,728 3,300 Professional Services ........................4,900 28,108 Business Meals /Entertainment ................ 16,500 General Operating Expenses ................. 57,318 Total Overhead Operating Expenses 1,056,168 Travel Airfare ......... ..........................8,820 12,000 Accommodations .......................... 10,800 Other Expenses .. ..........................8,488 3,300 Total Travel Expenses 28,108 TBID budget Advertising Meeting Advertising ........................ 89,035 Production ...... ..........................8,000 Special Promotion .........................85,592 Total Advertising 182,627 Conference Sales Site Inspections ........................... 12,000 Client Events .... .........................51,000 CRM Maintenance .......................... 3,300 Database /Lead Development .................36,900 Trade Show Expense ...................... 170,000 Sponsorships .... .........................94,800 Total Conference Sales 368,000 iFEI �V 151T ort ew M E A C H i c append eVwort 11 w e H ;Nc. SOURCES 2011 Horizon Consumer Science, Horizon Consumer Science Wave 1 and 2 Hotel Horizons® Travel Industry Uptake Irvine Company 2011 Virtuoso Luxe Report John Wayne Airport I- �e�eR�T�1 MSNBC.com City of Newport Beach Community Survey: Final Report conducted by ETC Institute New Media Trend Watch MkINR=. " [*]o&] Dean Runyan Associates, Cal. Travel Impacts by Country, April 2011 eMarketer.com Fashion Island Nielsen Company 2011 City of Newport Beach Newport Beach City Newsletter from City Manager Online Travel Market 2010 Online Travel Market, April 2011 PKF Hospitality Research I ndustry Reports 2010 & 2011 Social Media Examiner, 2001 Social Media Examiner, 2010 Smith Travel Research Summer -Fall 2010 Horizon Consumer Science appendix USAToday.com USA Today's Top Travel Trends of 2010 USA Today's Top Travel Predictions for 2011 U.S. Travel Outlook, Research and Trends, April 2011 Visit Newport Beach Inc. The Futures Company/ Lightspeed Research - Travelport YPartnership Consumer Segmentation Survey 2010 Tourism Economics, Historic Sources: CIC Research, OTTI Tourism Economics, Historic Sources: TNS Global 116 VISIT ew�%ort INC. CALENDAR OF EVENTS JULY 2012 Fourth of July Celebration Spend a memorable Fourth of July along the water and under the stars at The Newport Dunes Waterfront Resort and Marina, host of Orange County's most spectacular seaside fireworks display for over 50 years. Festivities start early in the afternoon with a barbecue, carnival games, crafts, face painting, music and more. Festivities are followed by an evening in awe as the "patriotic extravaganza" fills the air and lights up the sky with bursts of fireworks streaming over the ocean. It is a sight that truly should not be missed. appendix Old Glory Boat Parade See Newport Harbor strewn with the "American Spirit" as the "Old Glory Boat Parade" hosted by the American Legion Yacht Club features boats adorned with red, white and blue decorations to celebrate the birth of the United States of America. The Festival of Arts Featuring original artwork by 140 award - winning artists from Orange County, California's longest - running outdoor fine art exhibition pleases all types of connoisseurs with its open -air gallery setting. And in true festival form, special art- related attractions include special events such as jazz concerts, wine and chocolate pairings and guided art tours. Shakespeare by the Sea A flat, grassy area is the perfect spot to lay your blanket down at Newport Beach's Bonita Canyon Sports Park to experience the lively theater portrayal of Shakespeare's renowned plays. Each year, the Newport Beach City Arts Commission presents two different productions performed by professional actors. Concerts in the Parks Free and open to the public, the Newport Beach City Arts Commission hosts three evenings of family arts enter- tainment at local parks, from showcase singers to street bands. Simply bring your lawn chairs and blankets, and picnic outdoors with family and friends. 117 VISIT` ewport H 11 A < INC. 77th Annual Flight of the Lasers Boat Race Known as the starting point for many blue -water sailors, more than 100 small, single- masted catboats fill the Newport Bay to compete in what has become a local tradition. The race begins at the Balboa Pavilion and circumnavigating the entire bay. Sailors may test their skills come race day, free of charge. The Pageant of the Masters Where art comes to life and vice versa. Be intrigued by the re- creation of classic and contemporary works with real people posing to look exactly like their counterparts in the original pieces. The Festival of Arts brings you 90 minutes of "living pictures" accompanied by a professional orchestra, original score and live narration in an outdoor amphitheater designed to impress. AUGUST 2012 Concerts in the Parks Free and open to the public, the Newport Beach City Arts Commission hosts two evenings of family arts entertainment at local parks, from showcase singers to street bands. Simply bring your lawn chairs and blankets, and picnic outdoors with family and friends. SEPTEMBER 2012 Corona Del Mar Coastline Car Classic Thousands of people gather in the seaside neighborhood of Corona del Marto view a unique blend of European and American classics, exotic sports cars, hot rods, custom and specialized dealer - select vehicles. With festivities including live entertainment, food and beverages, unique vendor appendix exhibits and VIP hospitality, the Pacific Ocean backdrop purely serves as the icing on the cake at this extraordinary beachfront car show. 24th Annual Taste of Newport Home to more than 300 diverse restaurants ranging from elegant eateries to quaint cafes, Newport Beach is a food - and - drink - lover's paradise that becomes even more epicurean each September during the annual Taste of Newport. Over 30 restaurants give you a taste of their premier food, flavorful drinks and rich - tasting brews served with a side of spectacular live entertainment, along with live cooking demonstrations. The event pleases all of the senses and is one that should not be missed. 118 TIT ewport f t A i I I INC. Lido Yacht Expo "The best place to sell big boats and yachts in the West!" With more than 250 big vessels on display, along with gear that makes owning one more enjoyable, this boat show's continued growth has created the word of mouth that drives buyers to the ideal location of Newport Beach — a popular destination for active and affluent boaters. OCTOBER 2012 Harbor Heritage Run Newport Harbor High School PTA celebrates 25 years of community with the 25th Harbor Heritage Run. Join in a 5K feature race, 2K Fun Run/Walk, and a Kids' Klassic Race. 51st Annual Sandcastle Contest Corona Del Mar supplies the sand, while the Commodores Club of the Newport Beach Chamber of Commerce brings together thousands of spectators in an event that features a variety of skill levels in the artistry of sandcastle sculpting. From children to professional architects, talented groups compete for the winning title or to simply have a great time while supporting the community. International Festival The Newport Beach Sister City Association International Festival will celebrate the City of Newport Beach and its Sis- ter Cities in France, Japan and Mexico. The free event will include games, prizes and entertainment "under the big top" with a variety of live performances. appendix The Blackie's Longboard Association Annual Halloween Contest A Newport Beach surfing institution and local watering hole since 1953, Blackie's by the Sea will judge costumed surfers who compete off Newport Pier. It is truly a sight to see extreme surfing techniques paired with outrageous Halloween outfits. DECEMBER 2012 34th Annual Corona del Mar Christmas Walk As one of the oldest events the Chamber of Commerce is proud to present holiday festivities that families, friends and associates should not miss. Fun - loving people gather at the Village of Corona del Mar for entertainment, food, prizes and games in true holiday spirit. What better way is there to visit with Santa, meet the community and participate in the joy of the holiday season? 119 r e', ort 104th Annual Newport Beach Christmas Boat Parade Since 1908, boat owners in Newport Beach have "decked the hulls" of their seagoing vessels from beautiful multi- million dollar yachts to small boats and canoes with daz- zling holiday lights and music to fill the air. The splendor of Christmas and the holiday spirit shines vividly across the waters of Newport Harbor as the Christmas Boat Parade — a magical holiday tradition for all ages — continues to be a premier event for the holiday season in Southern California. The New York Times even hailed it as "one of the top ten holiday happenings in the nation." JANUARY 2013 7th Annual Restaurant Week Start off the New Year by satisfying your palate at one the fine establishments featured in the Newport Beach Restaurant Week. During this time, some of the best chefs appendix create three - course gourmet meals a lunch outing with friends or a special dinner for two. Discounted prices combined with beautiful scenery makes for an unbelievable dining experience. Whale Watching (January through March) The annual gray whale migration takes whale watching in Southern California to a whole new level. During their annual migration from the Bering Sea to Baja California and back, pods of whales can be spotted just minutes from Newport Harbor. These majestic mammals truly are a wonderful sight to see for all ages. FEBRUARY 2013 Marriott Newport Beach Jazz Party Enjoy the multifaceted style of jazz while eating brunch, lounging poolside under the afternoon sun or dressed to the nines sipping on cocktails in the Grand Ballroom. Performances include all -star musicians and true geniuses of the trade that is jazz music. MARCH 2013 Spirit Faun Celebrate health and education with a community event designed for the entire family to enjoy, A variety of races are implemented to appeal to 4 -12 year olds and the whole family "walks" to competitive or leisure runners. With all proceeds benefiting Newport -Mesa schools, the run is philanthropic and physically rewarding. 120 ewport r o s H I B A , TOSHIBA eading Innovation > Toshiba Classic Newport Beach hosts the annual Toshiba Classic, an offi- cial PGA Champions tour held on the green at the Newport Beach Country Club. The tour always attracts an impressive lineup of golf legends, including 2012 winner Loren Roberts and past champions including Nick Price (2011) and Fred Couples (2010). The Toshiba Classic has raised over $14 million in the past 14 years for its lead beneficiary, Hoag Memorial Hospital Presbyterian, as well as other Orange County charities. APRIL 2013 Newport Beach Film Festival Movie Maker Magazine named the Newport Beach Film Festival one of the "25 Film Festivals: Worth the Entry Fee." The festival spotlights hundreds of films every year, and appendix offers filmgoers a rare opportunity to meet the filmmakers. It is an experience filled with premieres and galas, followed by awards ceremonies and a chance to hear from directors, screenwriters and cinematographers about the behind -the- scenes magic involved in filmmaking. Newport Boat Show With more than 300 boats on display in the water including three legendary lines, at the Lido Marine Village and a host of exhibitors on hand to showcase innovative products and services that make owning and operating a big boat more enjoyable, this is the one show serious buyers will not want to miss. Newport to Ensenada Yacht Race AHOY! The world's largest boat race accompanied by a variety of festivities kicks off every year with the traditional "Launch Party" through to the annual Send -Off event where you can mingle with the skippers and crew. This unusually fun event and its views of the boat -laden harbor is some- thing that you have to experience to believe. Iiy=Mine1• =n- Walking in the annual March for Babies not only makes you a part of the largest fundraising event of the year for Orange County March of Dimes, but also it allows you to give hope to the more than half a million babies born premature every year. The money you raise will support programs in your community that help moms have healthy, full -term pregnancies. 121 S I= ewport 1 4 ( II ,NC. MAY 2013 Hyatt Regency Newport Beach Jazz Festival Three days filled with world -class performances by 25 top jazz artists brings smooth sounds of jazz to the Hyatt Regency Newport Beach. Featured as Southern California's most fa- mous smooth jazz festival, combined with popular tunes and great classics — along with a selection of food and wine — it makes for an unforgettable setting. OC Marathon Join thousands of other community- minded runners and walkers who will view scenery equal to the best of Orange County, beginning at Newport Center before crossing into Upper Newport Bay toward the finish line. Pledges will benefit over 15 local charities, and prizes will be given out to a number of first -, second -, and third -place winners. appendix National Tourism Week Showcasing Newport Beach, National Travel and Tourism Week is a collective effort to promote the power of travel through customized events in Newport. The goal is to enhance the country's economy, security and perception and recognize the cultural and social benefits created by travel and tourism. Both residents and visitors alike can take advantage of great values, such as special offers, events and conferences. Find over a mile of local artistry and live music located on Balboa Island's south bayfront promenade. More than 90 artists exhibit original oil paintings, acrylics, watercolors, glass, ceramic, sculpture, jewelry and photography. Locals and visitors can look forward to the artistic event the Sun- day after Mother's Day every year. Movies on the Beach Join us on Fridays and Saturdays from May through September for free movies shown on a giant screen at the Newport Dunes Waterfront Resort & Marina begin- ning at dusk. Bring the kids, lounge chairs and treats for a summer night the whole family will enjoy. Wine Festival Enjoy wines from Italy, epicurean delights and spirits on the idyllic waterfront setting of The Balboa Bay Club & Resort. Acclaimed winemakers, celebrated chefs, master som- meliers and noted experts will serve as guides, captivating festival -goers with educational seminars and enticing tast- ings, paired with extraordinary dining experiences. 122 = e>v ort ,W, JUNE 2013 Corona Del Mar Scenic 5K For over 25 years, the Corona del Mar Chamber of Commerce and the City of Newport Beach presents the Scenic 5K Race, two Mile Fun Walk, and one Mile Kids Dolphin Dash — three signature special events you will not want to miss. Come join thousands of racers for a race/ walk that ends along the bluffs of Big Corona State Beach. Looking forward to the finish line where restaurant row, merchant booths, and live entertainment await your arrival. Summer Concert Series at Hyatt Regency Newport Beach As the longest- running music series in California, the Concert Series presents revered musicians to Newport Beach from a range of genres from jazz to contempo- rary. The intimate waterview amphitheater is located at the Hyatt Regency Newport Beach. Concert -goers enjoy delicious food and wine in an unforgettable setting. The festival features 20 concerts held on consecutive Friday nights, June through September. Balboa Island Parade The Balboa Island Parade is a 20 year island tradition that draws more than 5,000 residents, merchants and community neighbors down Marine Avenue. The parade is filled with decorated golf carts and floats, vintage cars and various local groups, marching bands, and dignitaries. Help the island welcome summer with family, friends and good old American fun. appendix 33rd Annual Baroque Music Festival Founded in 1981, the festival presents historically stylistic interpretations of the great masterpieces of the Baroque period. Attendees have the joy of listening to singers and instrumentalists with antique and modern reproduced instruments just as the music was once heard during the era. Barrett - Jackson Collector Car Auction A car lover's dream encompasses all of the attributes that Barrett - Jackson has been able to deliver, giving it the reputation for the world's greatest collector car auctions. From mint- condition classics, to muscle cars, hot rods, resto -mods, exotics, and contemporary collectibles, Barrett - Jackson boasts the same amount of class as the vehicles which cross its showroom floors. 123 Attachment B TOT Visit Newport Beach Inc. Proposed Budget YV2o13 Ordinary Income /Expense 3,264,951 Income 71,085 40000. Income 7,004 41000 - TOT Income 3,252,691 42000 Partnership Fees 4,DOO 43000 - Co -Op Advertising Income 1,500 44000 -Event Hosting 260 44206 Annual Dinner 6,500 Total 40000 - Interne 3,2641952 Total Income 312641951 61100 - Benefits 3,264,951 Expense 71,085 61000- Salasks 7,004 61010. Salaries 740,154 61015 Bonuses and Commissions 73.371 61020 Auto Allowance 12,100 61030 Payroll Tax Expenses 65,142 Total 61DD0 • Salaries 890,767 61100 - Benefits 1,200 61110 - Medical Insurance 71,085 64120 - Dental Insurance 7,004 61125 Vision Insurance 1,418 61130 - life Insurance 4,660 61140, Retirement Plan (401k) 55,098 61150 Flexible Spending Plan 750 61160 Personnel Benefit 3,360 Total 61100 • Benefits 143,375 62000.Office Expenses 62100-Lease 209,294 62110.Office Repairs and Maintenance 10,296 62115 - Offce Move Expenses Total 62DOO.Office Expenses 219,S90 63000 - insurance 63100, General Liability Insurance 9,960 63200 - Workers Compensation Insurance 5,940 63300 - Board of Directors Insurance 4,596 Total 63000- insurance 20,496 64000.Operating Expenses 64100 � Office Supplies 12,000 64101 Stationary 3,500 64110 ice Equipment Leases 21,604 64115 Office Equipment (nonEeprec( 3,500 64120 - Equipment Repairs A Maintenance 10,296 64130 Voice, Oata B Cable - Office 6,300 64135 - Telephone - Mobile 7,020 64140, Postage 3,000 64145 Shipping Charges 1,200 64150 Bank Fees 11200 64151• Merchant Account Fees - 64160 Membership Dues 3,950 64165 • Subscriptions 11000 64170 - Team Meetings 8,100 64175 - Governance Meetings 8,200 64180 Education 14,000 64190 Business Licensing and Fees 7SO 64200• Professional Services 64201 - Audit Fees 5,000 64202 Tax Preparation Fees 1,000 UYT Visit Newport Beach Inc. Proposed Budget FY201g 64203. Recruiting Feas 11000 64204, legal Fees 2,500 64205 Payroll Processing Service 2,220 Total 64200 • PrOJesstonat Services 11,720 64300 Oepreciation Expense 26,522 64500 Other Operating Expense 4,000 64600 Business Meals/Entertainment 9,000 64700 Temporary Personnel 4,000 Total 64000.Operating Expenses 160,862 65000 - Travel 476,000 6SIOD AIdare 12,550 65200 Accommodations 13,400 65300 Meals 3,325 65400 . Transportation Costs 2,950 65500.Other Travel Costs 1,450 Total 6SOD0 - Travel 33,675 66000 . Advertising 66101 - Leisure - Advertising 476,000 66102 -Local Event - Advertising 138,000 66103 • Media Pronatlons 90,000 66104 Non -Media Promotions 30,000 66105.Other Consulting Fees 2,500 66200 • Agency Management 4,200 66201 - Fees and Expenses 150,000 66202 - Ad Production 60,000 66203 Creative oesign /Development 75,1100 66204 Conttsts /Consumer Promotions 25,000 66205 . Photography 45,000 66206 Other Contingencles 15,000 Total 66200 • Agency Management 37Q000 Total 66000 - Advertising 3.094,000 67000 - Marketing 67100 - Community Relations 67101 Research 10,000 67102 -Trade Shows 8,000 67103 - Communhy Partner Events 25,000 67104 - Annual Olnner 105,000 67105 • Awards 2,000 67106-Video 25,000 67107 Promotional Items 20,000 67108 VN91M. Events 21,000 67109 - Hospitalhy Training 18,000 67110 � Memberships 38,700 Total 67100 - Community Relations 272,700 67300 - Collateral 67301 - Vls0or Guide 67302 MaP of Newport Beach 67303 -Great Stays Gulde 67304 Mini Maps 5.000 67305 - Calendar of Events 6.100 67306. Wedding Guide 10,000 67307 - Destination Brochure - 67308 Community Report 2,500 67309 Marketing Plan 4,200 67310 - Partnership Packets 1000 67311 - Collateral Shoot Expenses 35,000 67312 - Collateral olstributlon 30,000 Total 67300 - Colateral 9SISOD TOT Visit Newport BCoch Inc. Proposed Budget FV2o13 67400 • Intemational Marketing 67401 Consulting Fees 62,500 67402. Media/Travel Relations 10,000 674D3 � Promotions 40,000 67404 Trade Shows 4,000 67405 - Airfare 6,000 67406 - Accommadatlons 5,000 67407 - Meals 11000 67408 • Transportatlon Costs 2,000 67409 -Other Travel Costs 500 67410 Business Meals /Entertainment 6,000 67411 Promotional Items 4,000 Total 67400 - International Marketing 141,000 67500.OMne Marketing 67501 - Email Marketing 3,000 67502 - W ebshe Maintenance 12,000 67503.Online Search Advertising 42,00D 67SO4.01gital Advertising 6,000 67505 -OMlne Contests /Promotions 3,000 67506 Mobile Application 10,000 67507 Consulting Fees 61000 67SOB Webslte Redesign $5,686 Total 67500 .Online Marketing 137,686 67600 - Public Relations 67601 - Media Services 26,000 67602 - Media FAM Tours 7,000 67603 • Promotions 6.000 67604 Consulting Fees 10,000 67605 Speaker Fees 6,000 Total 67600 • Public Relations 55,000 Total 67000 - Marketing 702,186 Total Eupense 3,261,951 Net Income Attachment C NEWPORT BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT FOR FISCAL YEAR 2013 JULY 1" 2012 THROUGH JUNE 30' 2013 ORIGINATION: Implemented beginning May 1", 2009 through an approved ordinance by the City Council, the Newport Beach TBID will be in effect for five years before the District is up for the renewal process with City Council. 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 FY2012 -2013 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 six TBID lodging businesses. These services are designed to benefit the six hotels 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 • Fairmont Newport Beach • Radisson Newport Beach • Newport Beach Marriott Bayview • Hyatt Regency Newport Beach • The Balboa Bay Club and Resort In addition, the following business petitioned and was approved to join the Newport Beach TBID in April 2012: • Newport Beach Dunes Waterfront Resort and Marina COST BASIS AND EXPECTED REVENUE FOR FY2012 -2013: Annual assessment rates are 2% 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. The expected revenue for FY2012 -2013 is $1.6351VI. Revenue forecasts are revisited in January of each fiscal year by the TBID Board of Directors to determine if adjustments need to be made. ACTIVITIES FOR FY2012 -2013: The strategic initiatives detailed in the VISIT NEWPORT BEACH INC. FY2012 -2013 Marketing Plan include maintaining momentum for the "Live the Dream" campaign — a national promotion across all market segments to generate interest in Newport Beach as a meeting destination, continuing with enhancing exposure to targeted clientele through participation in appointment -based shows, and advancing relationships with portfolio accounts such as HelmsBriscoe and Conference Direct. A summarized breakdown of the TBID -board approved strategic initiative marketing and advertising budget for FY2012 -2013 is as follows: LTIM14 i16910rcl Meeting Advertising $89,035 Production 8,000 Special Promotions 85,592 $182,627 CONFERENCE SALES Site Inspections $12,000 Client Events 51,000 CRM Maintenance 3,300 Database /Lead Development 36,900 Trade Show Expense 170,000 Sponsorships 94,800 $368,000 ASSESSMENT AND BOUNDARIES: No changes in assessment or boundaries are proposed. ESTIMATE OF NON - ALLOCATED FUNDS CARRIED OVER FROM FY2011 -2012: $0.00 AMOUNT OF ANY CONTRIBUTIONS OTHER THAN ASSESSMENTS LEVIED IN FY2011 -2012: $0.00 5888 °888 a $ 8$88 88 ^88888 SeB a$ 8988 as8 �x ^AsB 3? as can a affiaaE o8& e� a n a9zffi= am ffi s 88 8 a 8888 888 9S $$ R °' �3 ffi2 ^I 8l ,�Rm a Y, � 8 88� aBEa 8 °° 88 88 8a8 v85 8- g fi J s. s a$$seaaa a.a as sa as n 8 h,8 ?R qqmx�, F' 83d 8� 8 8 8 3 SBaa 88$ $8+I 8 l R k yp R8a88.8a8 aaa 88 sal aea x g' Sa 8a 828 as as x ^ffiffi = °8] R s 8 8 8$ 8Saa 888 8a e$ e - p pp pp g a � aEFCSen Y ,p EO �4 bE�°oS pp �4�a�3 ➢a;� €i� e s sE � stl� ��� �'� e6"u�nE� _`0E E C- � „m9 64 °'s�a¢a” b9'o� E33d zana� r EdF�:�e5 S °� $� of � x &^tl�ea 83a..ce�3g � @ &ggn9�F �ss333s�s "ss�ssss $ s3-b, h m°ry nH ° °88fre $8 $ °8 88S8a as 8,8^ � c 0 8888 8 Lmd8888 z $88$$$ $8 $$$8 $ °° °88 X999_ g� a J .`- $eases a as a a p 0. $88 $3 $8 8 $8 $ $SR$e 88888 as88� al 2 �a ®°M' •°.Ih 'q° N'h. "c�_Iq "l C$`l{"•4 v °i �'Q "Q�$''^J �G�' � .t