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04-08-1991 Item #F-9c
CITY COUNCIL Agenda Item No. E2 (C CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER April 8, 1991 TO: MAYOR AND CITY COUNCIL FROM: City Manager SUBJECT: CONFERENCE & VISITOR'S BUREAU REPORTS BY THE CIN COUNCIL CITY OF NEWPORT BEAC4! APR 8I i c--2>4�9 On February 27, 1987 the City of Newport Beach entered into an agreement with the Newport Beach Conference & Visitor's Bureau providing for the Bureau's operation, and the City participating by collecting and distributing 1% of the transient occupancy tax less a small administrative fee. The agreement requires that the "Bureau shall provide the City with a marketing plan and annual budget on or before April 1st of each year. The budget shall first have been approved by the Board of Directors of Bureau. The marketing plan shall specify the goals and objectives of Bureau during the fiscal year, and the methods Bureau will use to achieve those goals and objectives." The agreement continues by stating "Bureau shall expend funds provided by City in accordance with a budget submitted to, and approved by, the City Council." Pursuant to the aforementioned agreement, the budget and the marketing plan are hereby being submitted to the City Council for review and approval. During May of 1989 the City Council modified the. basic 1987 agreement by providing that the agreement shall commence on April 1, 1987 and shall expire on May 22, 1992 unless terminated by other provisions of the agreement. ROBERT L. WYNN RLW:kf LETTER OF TRANSMITTAL TO: John Cox Newpo t Beach City Council FROM - In Limberg, Chairman of Directors Newport Beach Conference and Visitors Bureau —X—/Yj7/ SUBJECT: Transmittal of FY1991-1992 Interim Budget and Marketing Plan DATE: March 28, 1991 As per our contractual agreement, we are pleased to forward to you the following approved pproved (1) Proposed Interim Budget for Fiscal Year 1991-1992 (2) Marketing Plan for 1991-1993 (3) Audit for Fiscal Year Ending June 30, 1990 as prepared by Leslie, Thomas, Schwarz and Postma Certified Public Accountants. We would like to encourage you to read over the Marketing Plan and our program expectations for the coming years, plus the bio -sketches (pages 53-59) of our board members and community volunteers who are helping the bureau fulfill its mission and program ram g We also wish to thank you for your continued interest in our programming which is desi ned to contribute to the economic strength of our community, g TL:r Enclosures ORT EACH 366 San Miguel, Suite 200, Newport Beach, California 92660,(714) 64I4ITOROS BUREAU00 94 - COAST FAX: (714) 644-1180 PROPOSED INTERIM BUDGET FY1991-1992 for the Newport Beach Conference and Visitors Bureau Newport Beach, California Tom Limberg, Chairman Board of Directors Richard B. Gartrell President/CEO March, 1991 NEWPORT BEACH CONFERENCE AND VISITORS BUREAU Newport Beach, California Proposed Interim Budget FY1991-1992 Introduction Enclosed is is the proposed interim budget for fiscal year 1991-1992. This format is based on standards suggested by the International Association of Convention and Visitor Bureaus. Annotation of line items are provided for your information. Many assumptions govern this initial budget; the primary one is that the marketplace will essentially remain soft into the coming fiscal year. Though it is hoped that revenues would increase reflecting a positive change in travel patterns, because of the state of our economy and the recent Middle East Crisis, the Bureau is remaining cautious with this initial budget and will review matters again at the beginning of the new fiscal year. During this past year, we have seen a dramatic decrease in group and individual travel as a result of all the negative publicity related to the economy and the Middle East; indicators over the past week or so suggest that travel is again becoming an option. However, our industry tends to be slow in responding compared to other parts of the economy, thus justifying our cautiousness. The need for additional funds for the Bureau in order for it to accomplish its mission and complete its programs is without question; the quality character of our destination, Newport Beach, continues to demand quality programming that will keep our area competitive with others that seek to draw groups and upscale visitors away from our facilities and resources. This issue of funding levels will need to be addressed during this fiscal year. The Newport Beach Conference and Visitors Bureau has been responsive to many audiences seeking information about our hotels, restaurants, attractions, retail shopping opportunities, yacht charters and so much more. Inquiries have been received from convention planners, tour planners, travel agents, international planners, travel writers and media to name a few. As Newport Beach and its reputation for hosting small meetings coupled with its get -away packages for visitors become more widely known, the demands continue to increase. These requests and growing demands suggest that the Bureau has been doing its job. Our Bureau is a sales and marketing organization, whose efforts, both direct and indirect, focus on fulfilling its mission of helping our community's economic vibrance through the development of the overnight visitor industry. This budget therefore supports the Bureau's sales and marketing programs and objectives. d A Tom Limberg, Chairman Board of Directors NEWPORT BEACH CONFERENCE AND VISITORS BUREAU Initial Budget Summary FY1991-1992 REVENUE FY1991-1992 FY1990-1991 (Total) (Projected Results) Hotel Service Fee $665,000.00 $662,000.00 Membership Investments 41,000.00 35,000.00 Coop Ad/Promotions 7,000.00 5,000.00 Merchandise Sales 2,000.00 - Services Fees - _ Event Hosting 2,000.00 - Misc/Other Income 1,000.00 500.00 Donated Services 10,000.00 10,000.00 Publication Sales 1,000.00 1,000.00 TOTAL REVENUES $729,000.00 $713,500.00 EXPENSES Salary Expenses $284,999.00 $293,600.00 Staff Expenses 77,108.00 50,700.00 Operations 109,722.00 114,490.00 Marketing 190,000.00 228,600.00 Community Investment 56,000.00 56,000.00 TOTAL EXPENSES $717,829.00 $743,390.00 (Initial Budget for FY1991-1992 Approved by Board of Directors March 14, 1991) a- o 0 o I o 0 0 1 0 1 m ••+• N i � r 0 1 p 0 o x 0 0 0 0 -•r o .� 0 0 o rn y _ d 1 N o o ILa .c -n o .� ..n co .ca ca o o N � e.0 -�• / O M� N ••�• _ d A t0 N 1 09 N N 1 ICJ 07 �1• N <D Oa O .y. 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I O O N 00 CD H V � O O O O O N nq O .a w -s Sn F H •+ Y o c O O < S C D F S «! O F O C7 H O F U 0 0 0 0 0 oa K I O O N 00 CD ^y W •— O O O O O N o O � o Oa M W `- O O O O O O O O O O �Ci CO CO i� 00 0 O 0 O K M W •— N CO O O o a o co se M 0 0 O o N �Ci !O O M 0 0 o O — ae vv M O O O O co M O O O O o x 0 oa K7 M W� E Wr F U7 m F ac 5c m a m c.5 V m H O O m NEWPORT BEACH CONFERENCE AND VISITORS BUREAU Newport Beach, California Budget Annotations REVENUES 1. Hotel Transient Occupancy Tax/Service Fee. By agreement with the City of Newport Beach, the Bureau receives a one percent service fee from the City (total collected by the City is 9%). Receipts are remitted to the Bureau on a monthly basis. Most area hotels remit their TOT revenues to the City on a quarterly basis, with the exception of two who submit it monthly. Small hotels/motels and cabin rental units submit it annually the 30th of September. Projections are based on a conservative estimate of revenues to be generated by the lodging properties based on information provided to the Bureau. 2. Membership Investments. The Bureau is a membership organization. Members are solicited and make an investment in the bureau's programs based on an investment schedule. 3. Cooperative Advertising /Promotions. These are funds received from participants who are cooperatively sharing the costs of various programs, including advertising, trade shows, or related marketing programs. During the coming fiscal year, the Bureau will be encouraging more cooperative programs in order to gain a greater profile for the bureau in various markets. 4. Merchandise Sales. Revenue from sale of bureau merchandise, including specialty items and related materials. 5. Service Fee. Revenue from sales of bureau services and assessments to businesses to underwrite services such as housing, feasibility study consulting, registration services or similar projects. 6. Event Hosting. Revenues from bureau sponsored events such as trade shows, seminars, and related events. 7. Miscellaneous/Other Income All other revenue sources not designated to categories otherwise stipulated. 8. Donated Services. Gross value of donated goods and services which are provided to the bureau but at no cash outlay, including comp sleeping rooms, transportation, meals as they relate, for example, to familiarization tours, site inspections, and the hosting of other planners and executives in the fulfillment of the bureau's programming mission. 9. Publication Sales. Revenues from the sale of bureau publications. EXPENSES Expenses are distributed over eight (8) work areas including: Convention Sales, Convention Services, Leisure Sales, Visitor Services, Public/Community Relations, Membership Marketing, Transportation/Community Investment, and Finance/Administration. Allocations are based on distribution of staffing. PERSONNEL 10. Salary Expenses. Base salary of all bureau staff (includes any calculations for annual cost of living increases. 11. Staff Expenses. These expenses relate to all other items including benefits, incentives, payroll taxes and workers compensation. OPERATIONS 12. Rent. Gross costs for space rental including utilitiies. Maintenance services. 13. Accounting /Legal /Professional Services. Costs related to accounting and audit services, attorney services (trademarks, copyrights). 14. Bank Charges. Handling of bank accounts, special transactions. 15. Computer Consultants. Costs for computer consultants and training. 16. Repair/Maintenance. Costs related to repair and maintenance of office equipment. 17. Maintenance Contracts. Contracts that cover costs for repair of equipment including maintanence of hardware and software. 18. Office Supplies/Services. Costs of office supplies and other services. 19. Insurance. Costs for insurance including property, general liability, casualty, bonding and D&O liability for the board of directors. 20. Local Meetings/Events/Retreat. Costs related to local meetings and events that are community relations along with the annual board retreat costs. 21. Equipment. Usually capitalized, equipment needed for operational support. 22. Equipment Lease. Costs for leases related to equipment, postage machines. 23. Donated Services. Matches "revenues"; goods and services provided the bureau in conjunction with programs. 24. Miscellaneous. Non -classified costs related to bureau operations. 25. Outside/Supply and Services. Costs related to temporary services in support of bureau programs including registration personnel (billed to convention). 26. Education/Training. Costs related to professional development of bureau personnel. 27. Operational Contingency. Set aside funds to support bureau during inconsistent environments; maintain stability for organization. 28. Relocation Costs /Personnel. Costs related to relocation of bureau executive. MARKETING 29. Travel/Entertainment. Costs of travel and entertainment including lodging, meals, transportation, and related. costs. 30. Trade Shows. Costs of trade show participation including registration fees, booth space, shipping, set-up charges and decorations. 31. Production /Publications. Costs related to the development of bureau publications (typesetting, layouts). 32. Printing. Costs related to the printing of all publications and materials for the bureau. 33. Advertising -Meetings. Costs related to the production and placement of advertising in the meetings market. 34. Advertising -Leisure. Costs related to the production and placement of advertising in the leisure markets. 35. Familiarization Tours/Site Inspections. Costs related to hosting of fam tours/site inspections in the local market area for one or more individuals including travel, lodging, meals, entertainment and related activities. 36. Newsletter. Costs related to the production of a quarterly newsletter, member messages and related programs. 37. Computer /Database Sales. Costs for access to computer databases for identification of potential clients/ sales leads. 38. Telemarketing. Costs related to the use of the telephone in identification and solicitation of prospects, handling of accounts/clients and solicitation of other related business. 39. Postage/Direct Mail. Costs related to postabe, air freight, shipping and direct mail programs. 40. Public Relations/Photo raphe/Media. Costs related to development of media relations, photography, photographers, public relations programming. 41. Miscellaneous Services. Costs of non -classified services. 42. Professional Memberships/Affiliations. Costs related to maintaining marketing and professional affiliations and industry publication subscriptions. 43. Research. Costs of research and research publications in support of bureau programming. 44. General Marketing/Agency Fees. Costs of non -classified marketing activities; agency fees. 45. Special Promotions. Costs of special promotions (including those used to build convention attendance) and specialty promotional items and programs. COMMUNITY INVESTMENT 46. Transportation /City. Based on a contractual agreement, specified amount of revenues remitted to the City by the Bureau for a special transportation account. 47. Community Relations. Costs related to sponsorshhip of selected community programs. OTHER INCOME/EXPENSES 50. Interest Income. Revenue from interest on bank accounts and related interest-bearing activity. 51. Insurance Reimbursement. Revenues from reimbursements from insurance programs. 52. Gain/Lass Sales Assets. Proceeds of sale in excess of net book value of office furniture. 53. Federal Income Taxes. Taxes resulting from profits on merchandise, publications and other related items. 54. State Income Taxes. (same as federal income taxes) STRATEGIC MARKETING PLAN 1991 - 1993 for the NEWPORT BEACH CONFERENCE AND VISITORS BUREAU Newport Beach, California NEWPORT Bias. THE [OIORMCOAST Richard B. Gartrell President/CEO Approved March 14, 1991 TABLE OF CONTENTS Introduction............................................................................................................ 1 SituationAnalysis................................................................................................. 2 Travel Trends Competition Selection Criteria Newport Beach Conference and Visitors Bureau .............................................. 5 Mission Staffing Conclusions............................................................................................................. 6 Conference Sales and Marketing........................................................................ 7 Conference Sales Conference Sales - Advertising Conference Sales - Publications/Promotional Items Conference Sales - General Conference Services Marketing Conference Sales - Market Research Leisure/Visitor Marketing................................................................................... 15 Domestic Markets Overall Goals - Visitor Markets Leisure/Visitor Markets Incentive Travel Group Markets (Group Tours, Travel Agents) International Markets Communications Marketing ............................ Overall Goals Internal Audiences Board of Directors Membership Staff External Audiences Clients/Client Prospects Media Elected/Non-Elected Officials Community Audiences/Group Trade Groups/General ........................................, 24 MembershipMarketing........................................................................................31 Membership Development Membership Assimilation and Retention Membership Management Organizational Management...............................................................................35 Financial Management Personnel Management Volunteer Management Administrative/Records Management Appendix MediaAppendix........................................................................................41 Consumer Magazines Consumer Newspapers Trade Publications International Publications Programs & Directories Select Leisure/Visitor Travel/Trade Shows........................................49 ProfessionalAffiliations...........................................................................50 Meetings Market Leisure/Tourism Markets BoardBio-Sketches.................................................................................. 53 NEWPORT BEACH CONFERENCE AND VISITORS BUREAU Newport Beach, California STRATEGIC MARKETING PLAN INTRODUCTION This is the second major marketing plan written for this Bureau, the first having been completed in September 1989 and approved by the Board of Directors in January 1990. In reviewing that program, two (2) concepts were prevelent. First, foundation. The marketing plan was a foundation for the bureau's programs beginning in 1989. It laid out the mission of the bureau and how that guided the programs. Laying that foundation was seen in the refinement of the organization; the addition of sales personnel; the installation of state-of- the-art sales systems to support personnel; the writing of manuals to guide the organization and personnel; a review and revision of the financial systems; and the development of an effective community relations program. Needless to say, these are only overview accomplishments, but essential foundations for an effective, efficient and professional organization. The second concept was that of focus. Programs were suggested with goals and strategies. After the foundations were begun, efforts were focused on the development of a quality sales program with staff and support systems. The focus of a bureau is that of developing an image for a destination that generates overnight business. The cooperative spirit developed between the bureau and the hotels, the bureau and its membership, and the bureau and its community led to successful sales and marketing efforts. The foundation and the focus have been laid. Now the challenge is to move into the future. Regardless of the current state of our economy or the recent crisis in the Middle East, it is important that the bureau move forward into the future with its sales and marketing programs. Setbacks usually occur in any business and for a variety of reasons; but to insure a healthy future and to secure that which has been established in the marketplace, the bureau (or any business) must remain optimistic, meet the challenges, and learn to operate "lean and mean" (or efficient and cost effective). Horace once said: "Adversity reveals genius, prosperity conceals it." Another writer once said: "We are continually faced by great opportunities brillantly disguised as insoluble problems." Thus, 1991 found the Bureau reexamining its programs, supplier relationships and financial commitments; refinements were made but equally important was the recommitment by the Board of Directors to the future of the Bureau, its mission and its programs. Many of the goals and programs suggested in the 1989 version have been accomplished. Many others are ongoing programs; there are always new ideas, strategies and programs that can be explored. This plan attempts to provide a new focus for the future, recognizing that annually, programs will be assessed as to their need and effectiveness. 1 SITUATION ANALYSIS 1. TRAVEL TRENDS Domestic travel seems to be indicating a shift away from the boom of the 1980's. For example, travel indicators show that the number of trips taken were up, but shorter trips seem to dominate current patterns. Shorter pleasure trips have increased 40% since 1982. 52% of all US travel were trips of 1-3 nights stay. Occupancy rates nationally seemed to flatten during 1989 while room rates reflected a slight increase. Meeting News (June 1990) reported that Orange County hotels located near the John Wayne Airport had occupancy rates that were slightly up but rates that were flat. Based on information received by the Newport Beach CVB, hotel occupancy in 1989/90 was down 1.1% compared to 1988/89 while hotel rates were up 4.3% in 1989/90 over 1988/89, again reflecting a mixed market. Nationally, domestic air travel was down in 1989, and suffered again in early 1991 with the Middle East crisis. Auto travel was up somewhat refective of the higher airline prices during 1989; but again, airline programs always provide a travel stimulant through their discount programs. In early 1990, consumer discretionary spending was modest indicating that consumers were more cost-conscious and less likely to spend on luxuries. This continued into 1990 when the economy began its recessionary f`fends. Orange County has more than 44,000 hotel sleeping rooms, with 2600 in the Newport Beach area, another 2000 planned for the Newport Coast region, nearly 2500 in Irvine and another 3000 in the Costa Mesa area. Except for the Anaheim Convention Center (which had an expansion in 1990), there are no other large convention facilities in Orange County. Consumers continue to age too; in 1994, for example, the largest portion of the adult population will shift from the 18-34 year old age group to the 35-54 year old age group. By the year 2000, the 55 -plus group will have become an even more critical part of the travel market. Successful marketing will have to address the needs of the aging consumer. These changing demographics are fracturing American travel consumption patterns, requiring that marketing activities become more niche -oriented. Such sophisticated marketing strategies are suggested further in this strategic marketing plan. Business travel has been flat for three years prior to 1990, though it showed an average annual rate of increase of 4.2% for the period 1977-1987. 25% of the 636.3 million trips taken by US adults in 1987 were business trips. Of the 160 million airline trips, 42% were business trips. Expectations were that this market would again show some increases in 1990, but the state of our economy would seem to complicate such expectations. A decrease in corporate programs and meetings was clearly seen in Newport Beach by the latter part of 1990 too. 2 The International Association of Convention and Visitors Bureau (February 1991) reported that that 84.9 million delegates attended more than 350,867 meetings in more than 325 reporting cities during 1990. This represented an increase of 13.7% in delegates and a 10.1% increase in the number of conventions compared to 1989. Meetings generated $54.6 billion 1990 compared to $44.5 in 1989. Modest 2-3% projected increases for the number of delegates attending and the number of conventions being held were also reported for 1991. The number of group meetings held in Newport Beach, based on composite data obtained through the Bureau, indicates that more than 3,014 meetings were held in 1990 compared to 2,666 in 1989, an increase of 13%; 149,870 delegates attended meetings in 1990 compared to 204,032 in 1989, reflecting a 26% decrease. Average size of groups decreased 32% from 78 in 1989 to 52 in 1990. These group trends are also reflective of the impact the state of the economy was having on the meetings industry. The character of the meetings market is showing some significant shifts. Reflected in any projection for increased number of conventions nationwide is the fact that the trend is toward smaller, specialty meetings in place of the mega -meetings. This means that Newport Beach could be more competitive with other destinations that can handle these smaller meetings. California is the home of 11.7% of all Americans; the state produces 13% of the country's GNP. 95.7% of its population live in urban centers, with the largest gains in population in the Southern California region. In fact, current estimates suggest that Orange County will be the fastest growth area for Southern California during the next decade, which would prove of significant advantage for the Newport Beach area. California has 800 miles of ocean frontage, with 4 out of 5 residents living within 40 miles of the beaches. Because of the large revenues generated by the travel and tourism industry, more than 2.2 million jobs are dependent directly on the industry representing 15.5% of the state's labor force. International travel has been strong over the past few years, with inbound international travel to the US increasing 10% each year from 1985-1990. It has also been noted that international travelers outspend domestic travelers. But in 1991 with the advent of the Middle East crisis, the fear of terrorism again negatively impacted international travel to the US with a 40% decrease. However, with a restabilization of the world scene, inbound international travel could positively impact the Newport Beach area. 2. COMPETITION Much can probably be said about Newport Beach's competition. Without a centrally located major convention facility, Newport Beach is fundamentally a "small meetings market", able to accommodate groups from 30-600 comfortably. But so can larger destinations. What then is Newport Beach's primary competition? During 1990, the Bureau commissioned a study to ascertain the perceptions held about Newport Beach by frequent travelers within a 150 mile radius. Over 1000 travelers with incomes in excess of $55,000 were interviewed. Competitively speaking, Newport Beach 3 ranked as indicated below depending on whether it was a short trip being planned or a longer trip. 1-2 Week Vacations 1. Hawaii 2. Foreign Countries 3. Caribbean 4. Mexico 5. Mountains 6. Newport Beach 7. Southwest Desert Weekend Vacations 1. Nearby Beaches 2. Las Vegas 3. Palm Springs 4. Mountains 5. Nearby Lake 6. Newport Beach 7. Southwest Desert The competitive posture suggests that Newport Beach could increase its potential as a viable destination for weekend vacations or shorter vacation periods. Other study results indicated that 47% of those surveyed thought that Newport Beach was a relatively nice place to visit; but only 23% had actually vacationed here. It was clearly indicated that what Newport Beach had to offer in the way of activities and events was not clearly understood. In fact, 45% of the respondees indicated they knew little or nothing about Newport Beach. When we asked vacationers to compare Newport Beach, on a variety of issues, to other vacation destinations, Newport's strengths, weaknesses and reputation came into focus. Newport Beach is not the only conveniently located vacation spot in Southern California, and many members of the "present" and "potential vacationers" segments think that other places have more recreational opportunities and are better suited for couples and family vacations. They also think that they will feel more comfortable with the people at these other places than with the people of Newport. And when we asked vacationers what it would take to coax them to vacation in Newport Beach, again the answer was a bigger variety of things to do, inexpensive vacation packages for couples and families, and assurances that there will be people in Newport with whom they will feel comfortable. The array of recreational opportunities presently available in Newport Beach is not perceived by most vacationers because Newport's image is so fragmented that they have never been introduced to all aspects in one coherent look. (Taken from the Bureau's Research Study, "Newport Beach Vacationer Market", July 1990) This definitely affirms the need for a program that develops an image, provides activity information to the consuming public and encourages coordinated marketing activities; thus, the challenge for the Bureau as a "destination marketing" entity. Another competitive issue is that of surrounding bureaus, their funding and the competitiveness that generates for market presence. In Orange County alone, there are four (4) other bureaus (in addition to Newport Beach) including Anaheim, Huntington Beach, Buena Park and Southern California Riviera (Laguna Beach -Dana Point). Generally, in the Southern California area, there are more than 10 other bureaus including: Los Angeles, Long Beach, Redondo Beach (newest), Santa Monica, Torrance, Pasadena, Ontario, San Bernardino, plus Oceanside, Escondido, San Diego and Palm Springs to the south. Funding of these destination marketing organizations poses another challenge too. For example, Newport Beach is only 1/5th the Anaheim budget, 1/17th the Los Angeles budget, 1/3 the Palm Springs budget (the city also has a tourism/advertising budget that exceeds the bureau funding level) and 1/10th of the San Diego budget. The dollars being committed to marketing a destination are significant; communities are aware of the dollars that are 12 generated by visitors, whether groups (e.g. conventions, tour groups) or individuals (e.g. business travelers, vacationers). It is important, therefore, that funding levels remain competitive if programs are to be sustained, market presence attained and visitors obtained. 3. SELECTION CRITERIA In a recent study by McNabb/DeSoto and Company (1990) of meeting planners, a critical question was asked that reveals a very profound point. Which is selected first? The Destination or the Hotel? 74% of the total respondents stated that they always select the destination first and then the hotel. 16% said that sometimes this is the case; and only 10% indicated they select the hotel first. The group tour market has also indicated this priority when planning tour itineraries. Such itineraries are governed by the destination point with enroute locations selected that complement the entire itinerary package. The tour planners look for an exciting (or unusual, depending on the character of the entire package being designed) destination followed by motivators (or attractions) and then services (e.g hotels, restaurants, step -on guides etc). The research and industry planning steps reinforce the importance of the convention and visitors bureau in fulfilling its primary mission as a destination marketing organization; it reflects the imperative for a coordinated and coherent (non -fragmented) image and program. It reflects the imperative for cooperation among the many businesses that compose the visitor industry in a destination. It focuses on the Bureau being that umbrella organization that can pull together all the interests to meet the marketing challenges of the marketplace. NEWPORT BEACH CONFERENCE AND VISITORS BUREAU 1. MISSION The Newport Beach Conference and Visitors Bureau serves the Newport Beach area as the umbrella marketing organization for the destination. It mission is succinct: To izain and retain clients, thereby contributing to the economic fabric of the community, through the solicitation of conferences and related group business and visitor promotions that generate overnight stay. This mission is completed through the encouragement and development of specific marketing programs, including cooperative programs, that position Newport Beach in various potential client markets (e.g. meetings market, incentive travel, vacation/leisure travel, etc). Further, the Bureau serves in a leadership capacity to encourage and promote cooperative marketing endeavors that will expand the positive image of the community and inform consumers as to the resources available. 2. STAFFING During FY1989/90, the Bureau increased its sales staffing to address the growing need for a more competitive presence with association and corporate executives and meeting 5 As outlined under "Conference Sales and Marketing", staff have been given a division of markets and responsibilities. Goals are annually set with the intent to develop a conversion rate for sales leads to actual confirmed bookings of 50%. CONCLUSIONS First, the challenges are many. George Bernard Shaw once said: "The people who get on in this world are the people who get up and look for the circumstances they want and they can't find them, make them." The Newport Beach Conference and Visitors Bureau will address the issues and challenges that confront it; but will also assertively plan in order to better fulfill its mission through programs that actually bring prospective clients in Newport Beach. to Second, the quality of our destination and its favorably perceived image in most markets can and will serve to our overall advantage. Our coastal location coupled with the image campaign developed during FY1989/90 provide the potential for positive Positioning in the minds of prospective buyers. g Third, the characteristics of our facilities and resources definitely meet the needs o changing market trends. Newport Beach is a "small meetings market" as well as a destination for leisure travelers who are seeking a quality yet economical destination that offers a variety of get -away opportunities. t Louisa May Alcott once said: "Far away there in the sunshine are my highest aspiration I may not reach them, but I can look up and see their beauty, believe in them and t s follow where they lead." This "Strategic Marketing Plan" are the bureau's aspirations foo Newport Beach; they serve as a foundation for the future and a focus for marketin efforts. g March 1991 Sources: (a) Somerset R. Waters, Travel Industr World Yearbook The Bi Pic[ure-1990 Waters, 1990) (New York: Childs & (b) Las Vegas Convention and Visitors Authority FY1990/91 Marketing Plan (c) "Successful Meetings' 1990 Meeting Planner Industry Study" by McNabb/DeSoto & Company (Texas) (d) 'Newport Beach Vacationer Market' Prepared by Amer Francisco, July 1990) ican Lives/Holen North America (San (e) Meeting News Magazine, June 1990 (f) International Association of Convention and Visitor Bureaus Press Release Dated 2/6/91 n. CONFERENCE SALES AND MARKETING Marketing is not magic, but it is methodical. Today's competitive climates warrant that bureau marketing efforts be thoughtful and sophisticated; what might have been effective yesterday is not necessarily the case for today or tomorrow. Markets, as we call them, have become more sophisticated, complex, diverse and numerous. No organization has the funds or resources to reach all markets. Careful analysis of prospective clients and client market segments (as we call them) along with a thorough understanding of the capabilities and limitations of facilities and resources is necessary in order to present an accurate "image product" in what is a very competitive marketplace. Specifically, Conference Sales and Marketing activities are focused on the group business that might come to Newport Beach for its meetings (regardless of size). To accommodate this endeavor, staffing has been developed to address the various "market" needs and groups, as seen in the following overview of assigned responsibilities. Director of Sales * Medical Meetings * Incentive Houses/Groups * Insurance Groups National Sales Manager * National/Internat'l Associations * State Associations * Local Associations Conference Services Manager * Services support for Association and Corporate Meeting Planners Corporate Sales Manager * Corporate Meetings * SMERF (social, military, educational, religious, fraternal) During the period August 1989 -October 1990, the programs of the bureau in conference sales were redeveloped including the addition of staff (from one sales to a team of four as indicated above), installation of an automated sales system, beginning the compilation of database marketing information, design of sales lead/booking and lost business forms, design and development of a new "Destination Planner" for use with sales prospects, design of a new trade show booth consistent with the image campaign developed for the bureau, plus much more. Each year, programs are evaluated; refinements and adjustments are made, with the hope that additional marketing opportunities could be implemented, depending on availability of resources. The following, therefore, are the goals and strategies suggested for the bureau in order to fulfill its primary mission for generating overnight group business. Many of these programs continue from year-to-year; but programs are assessed and changes made depending on the success in a specific market and/or the changes that might occur, for example, as a result of economic conditions. 7 CONFERENCE SALES Goals: 1. To attain and exceed established leads. 2. To establish an effective conversion booked business in Newport Beach. Objectives: annual goals for group sales rate of 50% for sales leads to The conference sales activities serve as a foundation for all activities; to fulfill the bureau's primary mission, the generating of leads and securing (or booking) of overnight group business is a focal point of marketing activities. The following are annual conference sales goals for the current fiscal year with tentative goals for subsequent fiscal years which will be refined/redefined based on market trends and characteristics at the beginning of each fiscal year. Annually, the average size group, delegate expenditures plus economic conditions must be evaluated and reflected in goal setting and economic impact calculations. Baseline data/calculations are still being evaluated to determine what can be ascertained annually based on systems employed and level of bureau staffing. Variables FY90 91 FY91 92 FY92 93 SALES LEADS 10,500* 15,000 # of Mtgs 225 250 275 Delegates 30,000 33,000 36,000 Rm-Nights 45,000* 50,000 55,000 $ Impact $11.3m UNK UNK* * NOTES:(applies above and below) 1. * indicates an adjusted calculation. 2. ** indicates that calculations are dependent on average size of group plus delegate expenditures which are calculated and issued by the International Association of Convention and Visitor Bureaus. BOOKINGS # of Mtgs 100 125 140 Delegates 10,500* 15,000 20,000 Rm-Nights 25,000* 38,000 50,000 $ Impact $4.7m UNK* * UNK* * NOTE: Over the past two years, the average delegate attendance for meetings in Newport Beach, based on data collectively provided by hotel/meeting facilities, was 78 during calendar year 1989 and 52 during calendar 1990. In establishing goals for the bureau, a higher average - per -group rate has been used. E Strategies: 1. To continue the development of database marketing including the subscription with MIM/Datacom for selected researched sales prospects (variables: $80+ rate for rooms, groups of 800 or less in size, interested in Southern California or Newport Beach specifically). Objective: Database marketing is one of the most sophisticated techniques for developing information about qualified prospects; because of the complexity of markets, this strategy utilizes methodologies to increase the return on a bureau's investment in sales and marketing activity, providing the sales team with meaningful data upon which to take appropriate action. Timeline: Monthly Staff. Director of Sales/Sales Staff Note: These prospects are reviewed by the Bureau President and forwarded to the sales staff for disposition; each lead is "worked" to ascertain its level of interest and potential for Newport Beach. Sales leads are generated when the group's decision -makers stipulate need for information for site selection. 2. Continue an aggressive direct -sales program based on identification of prospects and potential accounts maximizing the utilization of the MOST sales system. Timeline: On-going Staff. Sales Staff NOTE: The bureau automated its sales system during 1990/91 and installed the MOST system which has several design features to more efficiently monitor sales accounts and activity, as well as to build a database for other marketing strategies. I Develop direct-mail programs utilizing databases established in MOST sales system. Objective: Utilizing qualified databases, develop direct mail programs that will solicit interest from prospects within the total database, thereby providing staff with "warm" leads upon which to take action. Timeline: At least 2 direct-mail programs annually Staff. Director of Sales/Sales Staff Note: Such programs are to be evaluated and scheduled based on availability of data, timeliness and value in direct mailing, availability of funds and staff resources. Campaigns may include single markets (e.g. medical) or combinations of prospects (e.g. associations). 4. Conduct site inspections and familiarization tours for selected groups or individuals. Objective: Site Inspections/Faro Tours are the best means for getting planners to see the destination and have a favorable opinion. Therefore, the bureau wishes to focus some of its efforts on bringing planners to Newport Beach for a first-hand review of its facilities and resources. 7 Timeline: Annually, conduct at least three 3 corporate Planners (regional/national) and one forsta a business•Condu associtaod oup farn tours or viand dual site inspections on demand and/or via invitation. Staff: Sales Staff Note; Programming predicated on availability bureau sponsors and other support funds. Invitees must be sc eened bye tickets�bureau prilor to being forwarded to airline. 5. Explore the potential for a coordinated sales trip with hotel to a selected city or destination (must include appointments • ansales personnel the potential of a telephone sales blitz for selected market se )� /or explore Objective: To utilize a coordinated and consolidated sales strategy to introduce Ne Beach and develop segments. initial relationships with selected planners. 'port Timeline: To Be Determined Staff: Director of Sales/Sales Staff/Hotel Sales Personnel Note: Scheduling must be sufficiently far in advance to secure productive appointments with prospects and/or train and schedule personnel for telephone sales blitz. T' availability of personnel, markets la pp ments taken into consideration. ' planning timelines, and availability irn . ty of funds must be 6. Develop a schedule of trade shows that demonstrate value markets for Newport Beach. ue for specific Objective: Utilizing very selected trade show forums, identify client prospects Newport Beach. Timeline: See suggested schedule of trade shows p s for Staff: Director of Sales/Sales Staff (in consultation with bureau president Note: Not all trade shows have value; in fact, the marketplace has been overwhelmed with trade shows all claiming to reach your customer. In actuality, have been developed b med P y associations, private coin p h'' many trade shows "revenue generators". Asa result, the number of "o companies or ublication companies as importantly, the audiences attending "Opportunities" has increased but more quantity" of decision -makers. Thus, evaluation o trade shows,ave their cost their markets their abilityed in the quality and to deliver client decision -maker among other criteria will be conducted annually. No assumptions should be made about a trade show; the fact that it has been attended in the past does not guarantee that it will be attended in the FY1991 /1992 future. Trade Show Title Fall Street West (MLAAE) ITME Show, Chicago Meetings West, San Francisco No CA SAE, San Francisco Sacramento SAE Prof. Conv. Mgmt Assn. Destination Showcase Wall Street West (MLAAE) 10 M_ket Dates Association Incentive April 18, 1991* Corporate October 1991* Association November 1991* Association November 1991 Medical December 1991 Association January 1992 Association February 1992 ,,.- ., _, ,.,,. ,,.... -- April 1992 CONFERENCE SALES - ADVERTISING Goal: To establish a supplemental image for Newport Beach as a meetin s venue using selected trade media. g Strategy: Goals: 1. Explore and evaluate the potential for advertising that focuses on the meetings markets and the potential for Newport Beach as a small meetings venue. Objective: To provide a greater "visibility" for Newport Beach as a meetings venue supplementing sales activities and programs. Timeline: To Be Determined Staff. Bureau President/Advertising Agency add�Note: The development of this program is directly related to the availability of l funds; with current limited funds and the demands of the marketplace, redirecting of resources would be imprudent. The bureau will have developed a specific ad or ad series that addresses the meetings market and is economical (e.g. black/white and/or 2/3page vertical 4/c). One or two ads would be developed to address placement potential. All placement would be inhouse through the bureau directly to all publications. Though there are many publications that address the "meetings markets", the following are felt to be among the strongest for Newport Beach if and when such a program is undertaken. State Publications California Meetings Monthly (State Association) National (Horizonal) Successful Meetings (National Corporate/Assn) National (Vertical) Association Management (National Association) Convene (National Association/Medical-Health Care) (additional publications could be included upon further evaluation) 2. Explore cooperative programs with hotels and other bureau members for the meetings markets. Timeline: To Be Determined Staff. Bureau President/Hotel Membership Note: Explore is the operative term, to ascertain if there is value in a cooperative advertising program that would focus on our meeting facilities and services for meeting planners. 1. To provide marketing publications that support the fundamental programs of the bureau and project a quality image on behalf of Newport Beach. 2. To provide marketing specialty items that support related bureau marketing programs and fulfill specific program needs. 11 Strategies: 1. Design, develop and reprint as needed the bureau's "Destination Planner". Timeline: Annual Staff. Bureau President/Advertising Agency Note: Publication timeline is about 18 months; revisions to be minimum with limited reprint. Dependent on program needs. Priority project for conference sales. 2. Design and develop a "Visitor/Services Guide" for the Bureau. Timeline: March -August 91 Staff. Bureau President/Membership Manager/Conference Services Manager Note: This is a combination publication that combines three into one (membership directory, conference services guide, visitor guide); funding resources need to be explored to offset potential costs for final product. Initial product may by b/w and serve as a sales tool for the edition with color. 3. Design and develop marketing specialty items to support bureau marketing programs including trade shows. Timeline: Annual Staff. Bureau President/Advertising Specialty Company Note: The bureau developed during 89/90 several items that have been received well including canvass bags and smaller tote bags; other items explored include playing cards (with bureau logo) and pens (for executive gifts only). The bureau also has a business card laminator for use at trade shows. CONFERENCE SALES - GENERAL Strategies (continued) The following list does not imply priority among_ projects. 1. Mail "NB Style" to targeted meeting planners/association executives. Timeline: Quarterly/Year Staff: Sales Staff Note: The newsletter is written for the meeting planner, tour planner and association/corporate executive, utilizing the products and services of the bureau's membership as the basis for the communications. 2. Develop a presentation book for use on site inspections, fam tours, and trade shows. Timeline: To Be Determined Staff. Bureau President/Sales Staff Note: Quality pictorial display of facilities and resources in Newport Beach in addition to the 'Destination Planner". Can be used for international marketing too. 3. Establish and maintain professional affiliations in the meetings market. Timeline: Annual Staff. Sales Staff/Bureau President 12 Note: Maintaining such affiliations provides a network with association executives and meeting planners, access to industry trade shows, and avenues for other sales and marketing opportunities. Building relationships is important in the industry and such networks serve to enhance the perceived value of Newport Beach as a viable venue. 4. Conduct periodic sales meetings with hotel sales staffs and with sales managers from other companies within the bureau's membership. Timeline: To Be Scheduled/at least 4 annually Staff. Director of Sales Note: These meetings are essential in keeping the "sales team" informed, confident and cooperative; programs and issues can be discussed and clarified. 5. Develop an annual "Executive Summary" based on the Strategic Marketing Plan and an assessment of current markets and possible programs; communicate that plan to the bureau's membership. Timeline: Spring -Summer for Following Fiscal Year Staff: Bureau President in cooperation with CVB Staff Note: A periodic "Strategic Marketing Plan" will outline -program goals and strategies for the bureau; an annual "plan of work" will translate such overview programs into more tailored activities. The "Strategic Marketing Plan" is to be completed every two - three years. 6. Explore the potential of the Bureau working with specific community groups and/or individuals in developing potential meetings that would draw meeting delegates to the Newport Beach area (e.g. Continuing Medical/Dental Education Programs, dental health care etc). Objective: To take a proactive role in helping groups and/or individuals in Newport Beach develop programs that would draw meeting delegates to the community, thereby fulfilling bureau's mission in generating overnight stays. Timeline: To be determined. Staff. Bureau President/Sales & Servicing Staff Note: The Bureau would serve as a resource support to help those interested in developing programs inside Newport Beach that would draw business to the community. CONFERENCE SERVICES MARKETING Goal: To provide meeting planners and association/corporate executives with support for their planned meetings in Newport Beach. Strategy: 1. To develop and distribute to meeting planners and association/ corporate executives conference services information. Timeline: As Needed Staff. Conference Services Manager Note: This means that a letter is forwarded to each planner who books a conference introducing the Conference Services Manager and indicating to them that the bureau is willing to assist them with support services (as outlined in our informational materials) which includes the use of bureau members' products and services. 13 CONFERENCE SALES - MARKET RESEARCH Goals: 1. To establish the Bureau as an authoritative source for statistical information on the meetings (and leisure) markets for the Newport Beach area. 2. To initiate market research that assists in assessing markets and marketing strategies. Strategies: Conduct market research. Timeline: To Be Determined (based on information needs/research techniques) Staff. Bureau President (in conjunction with bureau members and/or research firm) Note: Limited research can be obtained with limited funding; but for reliable and valid research to be undertaken, additional funds need to be available that are not redirected from primary sales and marketing programs. Research is the foundation to good marketing activities; what is available on Newport Beach is extremely limited and needs to be expanded. Such research would involve both the meetings and the leisure or general visitor) markets. Specific research questions and issues to be outlined when projects are undertaken. 2. Provide collective/composite research information to bureau members and/or other audiences as appropriate (e.g. media (trade/consumer press etc). Timeline: To Be Determined Staff. Bureau President Note: With authoritative research, the bureau can become a reliable source of information for the Newport Beach and surrounding areas and thereby enhance its credibility and image within the community and industry. NOTE: All programs are subject to annual review and prioritizing based on the bureau's availability of resources. 14 LEISURE/VISITOR MARKETING Leisure/visitor markets can generally be divided into the following two (2) categories: domestic markets and international markets. DOMESTIC MARKETS. More than 5.8 million Americans are employed in the travel industry ranking it as the second largest employer in the United States. Payroll for the travel industry exceeds $73.5 billion. According to the Travel Industry of America Association and the U.S. Travel Data Center (Washington, D.C.), for each $60,000 spent by travelers, one travel industry job is supported. Spending on travel services in the U.S. totals more than $350 billion; and more than $42.8 billion is generated in tax revenues. The travel and tourism industry is the third largest retail industry in business receipts, after automotive dealers and food stores; and Americans spent more on travel during the last year than on clothing, accessories, jewelry and personal care combined or on household utilities including telephone service. In fact, travel spending in this country averages $959 million each day, or $40 million each hour ($660,000 each minute or $11,000 each second). Among travelers, the Southeast region of the United States was the most popular destination in 1990; the West was the second most popular destination. What does this mean for Newport Beach? The travel (or visitor) industry is also big business for Newport Beach. Some 5;000 or more are employed in our industry (hotels, restaurants, attractions, charter operations, transportation companies, event planners, caterers, etc), making it the largest industry in our community of 70,000. Our infrastructure of hotels, restaurants, attractions, charters and yachts, transportation companies and numerous small businesses that rely on the visitor industry is enormous, valued well in excess of $6 billion. And with plans for the development of the Newport Coast, the value of that infrastructure will grow as well. Revenues that were generated by visitors (group, leisure and corporate travelers) well exceeded $84 million in 1990 (this represents only the group convention market impact). Though only one component of the entire industry, the lodging industry in the US employs 1.6 million people full and part time, paying $17.4 billion in wages and salaries and generating more than $57.1 billion in sales. For Newport Beach, we have 14 lodging properties with more than 2600 sleeping rooms, that employ more than 2000. Last year, more than 3,000 meetings were held in these properties involving 160,000 delegates. Nationally, the restaurant and foodservice industry employs 8 million people and has sales in excess of $248 billion. 15 Specific domestic visitor markets which are tar meted by the bureau include: * Group Tour Planners/O ,00=gators * Travel Agents/Incentive ravel Planners * Individual Leisure Travel —w rs (upscale) * Travel Writers/Media (s 4CZ— Communications Marketing) Each of these markets are segmented on the bas —� _1� of (a) geographic impact/relat: Newport Beach and/or (b) demographic/psychog — phic characteristics and behavic market or market segment. The following goals &nd strategies take into consider assumptions that markets are carefully analyte prior to embarking on any marketing activities OVERALL GOALS - VISITOR MARKETS Goals: 1. To develop an image for Z�ewport Beach as a leisure destination. 2. To communicate that image to s -a--cifically targeted audiences. 3. To generate overnight stays by vL Mors to Newport Beach. LEISURE/'VISITOR MARKETS Strategies: I. Complete the development of be used as a fulfillment piece f r advertising) and in response to aJMr1 Newport Beach. Visitors/Services Guide" th all marketing programs (ini visitor inquiries for informati Objectives: (a) Provide infor motion about the bureau's men to visitors inquiring about Ne ort Beach; (b) Provide a cons source of information for 1 �� c wport Beach; (c) Reduce cos responding to visitor inquiries throu a consolidated brochure. Timeline: March -August 91; On -go' g_,/Annual Staff: Bureau President/Membership= _P�anager/Advertising Agency Notes: Visitor information being devil©ped by the CVB includes (but not limi Things to See and Do, and an annu.----- Events Calendar. Bureau will also ex series ofP ossible informational flerg ]Nlt--o supplement the "-V-isitor/Services-Gu handle such items as the Events Calms �� mar. 2. Explore the development of a ooperative advertising program would establish Newport Beach as a Z—F --w-- 3sure travel destination. Objective: To position Newpo�- -v- Beach as a viable leisure destination for families, couples egardless of age) and those who an "upscale" living profile. 16 Timeline: On-going Staff: Bureau President (with members/advertising agency) Note: In a research study conducted by the Bureau during 1990, a survey of 1000 frequent travelers (more than one trip per year) with household incomes greater than $55,000, living within a 150 mile radius of Newport Beach, the findings generally indicated that 45% had little or no idea of the facilities and resources available in Newport Beach. InterCommunicationsInc of Newport Beach (the Bureau's advertising agency) along with the Bureau's Marketing Committee reviewed a document that began to suggest some of the possibilities for cooperative advertising, targeting trade and consumer markets, both magazines and newspapers. Possibilities included (but not limited to): USA Today (regional,LA Style, LA Daily News, Travel and Leisure, Sunset, San Francisco Focus, San Diego Magazine, Desert Sun plus other area and regional media. See the appendix for listing of publications by InterCommunicationsInc in their 10/90 document to the Bureau. Dependent on availability of partners and resources. Also recommended that hotels and other bureau members provide the bureau with some indication as to their own planned advertising programs to ascertain if there are opportunities to coordinate existing placement schedules into additional exposure for the Newport Beach area (e.g. editorial copy, banner pages, merchandising opportunities, sequence with other cooperative programs, etc.) 3. Explore the potential for identifying a direct mail program that would advertising program. Objective: Supplement an advertising to targeted zip codes (profiles to clientele for Newport Beach. Timeline: On-going Staff: Bureau President/advertising media Note: This is often available as a advertising program. specific segmented markets for compliment any cooperative program with a specific mailing be determined based on desired merchandising supplement to an 4. Explore the potential of developing a voice message system for Newport Beach attractions, restaurants, hotels and other visitor services. Objective: To provide a 24-hour hotline for information on and about Newport Beach (including events). Timeline: To Be Determined Staff: Bureau President Note: Such programs have been developed by other destinations to relieve bureau staff of having to respond to all visitor inquiries; it is also a means for having information available 24 hours in light of time zones. Programs are usually sponsored by subcribers who have their information on the system. Dependent on availability of funds. 5. Explore the potential for development or centers for Newport Beach. Objective: To provide an outlet for the City of Newport Beach. Timeline: On-going 17 of a visitor information center information to visitors arriving in Staff. Bureau President Note: Among the issues that need to be taken into account include availability of facilities, location of facility or facilities, costs for rental or arrangements for donations, accessibility for visitors, staffing, utilities, storage capabilities, safety for workers and directional signage. Dependent on availability of funds. 6. Explore the potential for video information outlets. Objective: Provide on-site interactive video information outlets at key populated areas of Newport Beach to assist with information about Newport Beach. Timeline: On-going Staff. Bureau President Note: In lieu of formal visitor centers, use of interactive video outlets is an option. Dependent on availability of funds. 7. Respond to all visitor inquiries in an expeditious manner. Objective: Fulfill requests promptly and encourage visits to Newport Beach. Process 5-10,000 FY91/92 and 10-15,000 FY92/93. Timeline: On-going Staff. As assigned Note: In FY1988/89, the bureau processed about 1300 visitor inquiries compared to 7,333 in FY89/90. Inquiry levels are predicated on word of mouth, media stories/coverage and consumer advertising programs. Explore the potential use of an outside fulfillment source (e.g. Goodwill and/or mail house) for handling inquiries. 8. Explore the development of a "frequent visitor" program. Objective: Encourage return visits to Newport Beach. Timeline: 1991-1993 Staff. Bureau President/as assigned Note: This would be a sponsored program that would encourage visitors to utilize the resources of Newport Beach through return visits. Initial concepts developed during FY90/91. 9. Explore various travel/trade shows for marketing potential. Objective: Develop a presence for Newport Beach among specific planning audiences (e.g. group tour leaders, incentive planners, international tour planners). Timeline: Annual/on-going Staff: Bureau President Note: Just like the meetings market, there is a poliferation of travel shows that make all kinds of claims about reaching trade and consumer markets. Each show will be considered in light of its forum format, potential clients and audience being invited, as well as location of the show. All decisions are based on availability of resources. See appendix for show profiles. 10. Continue to explore, examine and evaluate the potential of other general marketing strategies, concepts, and/or programs that target various leisure/visitor market segments. Objective: To market the image of Newport Beach as a viable leisure travel destination. Timeline: To be determined Staff. Bureau President (in cooperation with Marketing Committee) Note: For example, many marketing ideas are brought to the attention of the bureau through direct mail, the IACVB Idea faire (what other bureaus are doing) or through the membership resources of the bureau. Many of these ideas need to be examined to ascertain their viability for Newport Beach markets and potential for increasing image profile, visitor inquiries and overnight stays. Ideas for visitor services and marketing programs might include: * Explore the development of a trade/consumer type trade shows that would attract potential buyers to the area (including use of mini -trade shows for fam tours) * Development of front-desk/concierge hospitality training programs (that would assist front desk and concierge personnel to know what there is to see and do in the area) * Welcome displays for Newport Beach businesses that "Welcome" an incoming convention (and might indicate they are a member of the bureau) * Utilization of brochure distribution networks for the general rack brochure on Newport Beach (dependent on availability of resources and additional quantities of rack brochure) * Work with the California Office of Tourism in joint promotional efforts to better profile Newport Beach in their publications as well as to explore other cooperative endeavors (dependent on availability of resources) * Explore potential of a hospitality awards program and/or an ambassador awards programs for those who bring group business to Newport Beach. * Explore cooperative programs (e.g. map, Lookout) with Newport Harbor Area Chamber of Commerce, as outlets/sources for visitor information. INCENTIVE TRAVEL More than $2 billion is spent annually by companies and individuals on incentive travel; the average expenditure per person is usually $1600 with an average length of stay of five (5) days. The incentive market tends to be an upscale market consistent with the programming objectives of the bureau and the characteristics of our destination. In the August 1990 issue of Resort & Incentives magazine, they indicated that the top domestic destinations included: Maui, San Francisco, San Diego, Los Angeles, Lake Tahoe, Las Vegas, Phoenix, Orlando and New York City. The fact that Palm Springs was not listed is of some interest; but that four of those cities listed were in California is another interesting observation, and certainly affirms the potential for Newport Beach to intercept some of that business. Strategy: 1. Identify incentive houses, corporate incentive executives/planners. Objective: Develop a communication program that would target key incentive decision -makers about Newport Beach as an incentive destination. Timeline: On-going Staff: Director of Sales W91 Note: This program may involve direct mail, scheduled sales visits, and/or attendance at key incentive programs/trade shows, along with account identification and other related direct sales efforts. GROUP MARKETS (GROUP TOURS. TRAVEL AGENTS) Though travel agents deal with both groups and individuals, they are grouped into this general category because the strategies compliment those employed to reach the group tour planner. In some cases, group tour planners are also travel agents with subsidiary companies. America's tour companies generate more than 1.4 million group departures each year with overall economic impact of $13.2 billion. Travel agencies employ nearly 200,000 people full o� part time, pay $3.95 billion in wages and salaries, and generate $79.4 billion in sales. Airlines employ 800,000 with payrolls in excess of $30 billion, carried 467 million passengers in 1990 and had passenger and cargo sales in excess of $70 billion'in 1990. Strategies: 1. Continue to work with and develop relationships with group tour operators/planners. Objective: To generate new group tours into the Newport Beach area. Timeline: Annual Staff: Bureau President (or as assigned) Note: The development of relationships in the group tour market takes several years; the planning cycle for a tour operator can take from 12- 18 months depending on the characteristics of the tour, and/or the clientele who are being served by that operator. Tours into and/or through an area may include a short stop for an attraction, a one -day visit, and/or an overnight visit. Group tours look for net rates on all hotel rooms, food arrangements and admission costs, in order to "package" the tour elements for resale to prospective clients. It is suggested that the Newport Beach CVB offer several seminars on packaging and how to work with the group markets, to help introduce all those interested in working that market as to its characteristics and planning processes. 2. Develop tour itineraries and program suggestions for the tour planner. Objective: To tease planners with the options available for the Newport Beach area; to give tour planners concrete tour suggestions upon which they can act or refine their tour plans. Timeline: On-going Staff. Bureau President/or as assigned 20 3. Explore attending specific group tour trade shows. Objective: Appointments with key tour planners (shows are usually predicated on tour planners asking to meet with specific bureaus as well as bureaus having the same option with tour planners, then through a computer matching system, appointments are scheduled). Timeline: On-going Staff. Bureau President/or as assigned Note: See appendix for characteristics of various leisure/travel shows. 4. Explore the potential for direct mail to targeted group tour planners. Objective: To communicate tour itinerary possibilities for Newport Beach. Timeline: January-March/August-October mailing periods Staff. Bureau President (or as assigned) Note: Planning for the tour operator is usually best in the Spring each year for the following year. Need to consider avoiding convention dates. Dependent on availability of funds. 5. Explore the potential for direct mail to targeted travel agents. Objective: To communicate to the travel agent market the resources of Newport Beach. To develop an awareness of/for Newport Beach. Timeline: To be determined Staff. Bureau President/Outside Mail House Note: McClelland Inc of Woodland Hills has travel agent mailing lists and can sort on a variety of variables to make a direct mail program efficient and cost effective. Dependent on availability of funds. 6. Explore the potential of relating to the "Tag Day" activities of the Anaheim CVB and/or explore an optional time for developing a similar activity for domestic and international travel agents/group planners. Objectives: Provide a group experience that exposes Newport Beach Timeline: To Be Determined Staff. Bureau President/as assigned Note: The Anaheim program involves 3 days and nearly 900 participants. 300 international agents are included. Airline carriers provide seats or reduced fares. A nominal charge is made of each person (<$90). Significant coordination required. Dependent on availability of funds. INTERNATIONAL MARKETS In 1990, 40 million international travelers visited the United States, spending $52.8 billion, directly supporting more than 700,000 jobs. The travel industry is a greater export revenue generator than agricultural goods ($40.1 billion) and chemicals ($36 billion). According to the Anaheim Convention and Visitor Bureau, more than 2 million international arrivals annually occur through Los Angeles International. Japan has been the 21 leading nation with arrivals (though this may have changed in 1990/91 with the advent of the Middle East crisis and the ceasation of travel to the US), followed by Canada, United Kingdom, West Germany, Australia and France. Because of the characteristics of the Newport Beach destination, it is favorably looked upon by international tour planners. Strategies: 1. Identify key international tour planners and wholesale houses. Objectives: (a) Identify those with strongest potential; (b) Develop ongoing relationships; (c) Succeed in having Newport Beach added to their tour itineraries for this area. Timeline: March 1991 - ongoing Staff. Bureau President Note: The Bureau has met with Japan Travel Bureau and they are open to working with Newport Beach; Nippon Express has also indicated an interest. In Spring 1990, the bureau met with 12 key outbound tour planners in Sydney, Australia and also paid calls on several other key tour operators in Melbourne; these Australian contacts will need to be nurtured more closely in 1991 and 1992 if there is a possibility of getting into their itineraries for the US. 2. Call on/develop rapport with international tour planners. Objective: To develop a working relationship with international tour planners. Timeline: Ongoing Staff. Bureau President Note: Once key inbound planners have been identified, establish a working relationship with each operator; provide information and support to encourage utilization of Newport Beach facilities and resources. 3. Develop direct mail programs targeting international tour planners. Objectives: To maintain communications with planners; to introduce planners to new products and services. To indicate a continued interest in their needs and programs. Timeline: To be determined Staff: Bureau President 4. Explore attending key international tour planning trade shows. Objective: Meet face-to-face with international tour planners. Timeline: To be Determined Staff. Bureau President Note: For example, the annual Pow Wow is held at which international tour planners attend and literally write business. Dependent on availability of funds. Possible cooperative effort for shared booth space at Pow Wow. 22 5. Explore development of individual and/or group trade missions to key international countries or participation in cooperatives with other bureaus for such purposes. Objective: Develop an image and awareness for Newport Beach among international planners. To cooperate with colleagues in developing an area representation. Timeline: To be determined Staff: Bureau President Note: International tour planners usually look at areas rather than one specific city, in order to provide their clients with the best "packaged" program. 6. Explore the translation of visitor information materials into the languages of targeted countries. Objectives: To respect potential linguistic differences by providing translated materials for each targeted country; to encourage travel to the Newport Beach area through this means of communications. Timeline: Japanese 1991/92; French 1992/93 Staff: Bureau President Note: Requests have been received by the bureau whether we have materials in their native languages; bureau will work with Sister Cities and/or offices of the USTTA in the respective countries to obtain accurate translations. Options for other materials include: German, Spanish. Dependent on availability of resources. FOOTNOTE: All programs are subject to annual priorities and availability of resources. Annually, programs are subject to being reviewed and evaluated as to their effectiveness. New programs may be developed again dependent on the availability of resources. 23 COMMUNICATIONS MARKETING What kinds of "messages" does the organization send? What kinds of images are projected by the organization's communication style? How does the organization communicate, and with what publics/audiences? What kinds of tools and resources are utilized by the bureau when communicating with various audiences? Communications marketing is an essential part of a bureau's total marketing program. It is the dynamic link that keeps various audiences, internal and external, informed as to the programs of the organization; unless information is shared, it is not understood. The more that is shared, the greater the potential for understanding and an appreciation of the organization's mission and programs. A bureau's communications program involves everything from considering the audiences that should be kept informed to the tools (such as publications) and techniques that are used to fulfill its communication goals. For example, internal audiences include the organization's board of directors, membership, and the bureau staff. External audiences include clients/client prospects, media (trade and consumer), elected/non-elected political officials, and the other professional, business, corporate, educational and social leadership of the community. Publications include such items as the bureau's newsletter, annual report, and other public documents (e.g. "Destination Planner", Visitor/Services Guide, etc). Techniques might include frequency of communications, letters, periodic meetings, or other similar techniques that serve as vehicles for effectively communicating the bureau's mission and programs. Communications marketing -the bureau's public relations and community relations programs - is a pivotal program for any bureau. Below are outlined goals and programs for the Newport Beach Conference and Visitors Bureau. OVERALL GOALS The following are the overall goals for the bureau's communications marketing program. 1. To create a positive image for the Newport Beach area. 2. To develop a message about Newport Beach, its facilities and resources and viability as a meetings and leisure destination. 3. To develop a series of mediums through which that message is repeatedly communicated. 4. To develop and maintain communicative liaison with various audiences with whom the bureau needs to relate and work. 5. To affirm the credibility and value of the Newport Beach Conference and Visitors Bureau as a marketing organization and partner in the development of our community. M INTERNAL AUDIENCES Board of Directors Goals: 1. To maintain monthly contact with members of the board of directors. 2. To meet individually or in small groups with each board member at least twice annually (beyond board meetings). 3. To hold an annual retreat for the board of directors that will address bureau programs and future issues. Strategies: Membership Goals: 1. To provide board members with a summary report of bureau activities. Timeline: Monthly 2. To provide board members with a periodic 'Executive Update", particularly between board meetings, that overviews what is happening with the bureau. 3. To hold an annual board retreat. Objective: To develop a forum for developing board relationships; and exploring and brainstorming issues, programs and concerns, both short and long-term. Timeline: January 1. To communicate with the membership keeping them informed of bureau programs and activities. 2. To hold quarterly membership receptions/meetings that introduce members to one another along with their products and services. 3. To provide an annual report on bureau programs and activities. Strategies: 1. To write and mail to the membership, "Members Messages" which provides a current status of bureau programs and activities. Timeline: Monthly 25 Staff Goals: 2. To hold membership meetings that provide a forum for networking as well as viewing of member services. Timeline: Quarterly 3. To publish an annual report of bureau activities and programs. Timeline: August -October Annually/Biennial 1. To maintain open communications with staff regarding bureau programs and related activities. 2. To develop and maintain a "team" approach to management that nurtures loyalty, encourages assertiveness and sustains performance. Strategies: 1. To hold staff meetings for the sharing of ideas and information regarding bureau programs and related activities. Timeline: At least 6 per year 2. To visit individually with staff regarding their ideas and programs areas to ascertain their concerns and provide professional encouragement. 3. To conduct performance reviews as a means for encouraging, guiding and focusing professional performance. Timeline: March and September annually 4. To encourage professional development. Objective: Develop the skills and talent of personnel. Timeline: To Be Determined. Programs may include WACVB (Long Beach 1991) and/or other association or development programs. EXTERNAL AUDIENCES Clients/Client Prospects Goals: 1. To provide clients and client prospects with a periodic communique that informs them about what Newport Beach is and has to offer. 2. To provide clients and client prospects with a visual understanding of Newport Beach. 26 Media Strategies: Goals: 1. To publish a newsletter that is written from the client's perspective that tells about Newport Beach and what it has to offer them as a meetings and leisure destination and the services of the bureau's membership. Timeline: Winter, Spring, Summer, Fall Staff. Communications Manager (advertising agency) 2. To develop (and release) a video of Newport Beach that highlights (10 minutes) what Newport is and has to offer them. Timeline: April -October 1991 Staff. Bureau President Note: This project must be a co-sponsored project by the membership of the Bureau; requests for video tapes continue to be, received by the bureau from meeting and tour planners, media, and in some cases, commercial outlets. The video tape provides the opportunity for commercial distribution. 1. To provide a media kit to selected media. 2. To provide at least six (6) press releases to selected media. 3. To host at least one media faro tour annually. 4. To provide support to media by responding to their inquiries including their need for photography. 5. To monitor and track and to record editorial copy/stories that profile Newport Beach. Strategies: 1. To mail to selected media a media kit about Newport Beach including a calendar of events; lists of attractions, restaurants and other members (by categories); and general information about Newport Beach. Timeline: Annual Updates As Needed 2. To distribute press releases that focus on things to see and do in the Newport Beach area to targeted media. Timeline: 6 times per year 3. To host a media familiarization tour. Timeline: At least one annually 27 4. To provide media with other information as requested in a timely manner including photography. Timeline: As requested 5. To develop media mailing lists and to update those mailing lists to insure that individuals and publications are current. Timeline: Annually 6. To develop a comprehensive photo file for media. Objective: To respond to media inquiries, providing photographic support to stories, editorial requests and media kits. Timeline: FY91/92 6. To brief staff on the handling of all media inquiries. 7. To monitor and collect editorial copy on Newport Beach. Timeline: On-going Elected/Non-Elected Officials Goals: 1. To maintain open communication channels with the city's elected and non -elected officials. 2. To meet annually with each city councilperson to share information and exchange ideas. 3. To keep elected and non -elected officials on appropriate mailing lists to receive information on and about the bureau as distributed. Strategies: 1. To write periodically a personal letter to each elected and identified non -elected officials to share with them current developments regarding bureau programs. Timeline: At least quarterly/year Staff. Bureau President 2. To meet with each elected official individually. Timeline: Annual Staff. Bureau President 3. To develop a breakfast meeting for the bureau board and elected officials. Timeline: Quarterly Staff: Bureau President/Board Chairman M] 4. To maintain the forwarding of bureau information with appropriate notes to each identified elected and non -elected official. Timeline: On-going Staff: Bureau President/Director of Finance/Administration Community Audiences/Groups Goals: 1. To identify at least 100 community leaders in order to communicate with them regarding bureau programs. 2. To identify community groups before which the bureau could make a public presentation. 3. To provide selected community groups with sponsorship assistance as identified and determined by the board of directors. 4. To work with various community organizations thereby profiling the bureau and its important role for and within the community. Strategies: 1. To write a periodic letter to selected community leaders (business, professional, education, corporate, industrial etc) to share with them what the bureau is and its programs. Timeline: At least 6 times/year Staff: Bureau President 2. To solicit invitations before civic groups (e.g. Exchange Club, Rotary, SUN etc) to share with those audiences the mission and programs of the bureau. Timeline: Annual 3. To review within guidelines of the bureau policies and budget potential sponsorships for community groups in accordance with guidelines and with the approval of the board of directors. Timeline: Annual/On-going Staff: Bureau President in conjunction with Community Relations Committee 4. To develop a slide presentation that bureau staff and/or board members may use when making public presentations. Timelines: November 91 -March 92; Statistical Updates Annually Staff. Bureau President 5. To serve in a volunteer leadership and/or membership capacity with various community organizations, to provide visibility for the bureau and to enhance therefore its image and the importance of its programs for the community. 29 Timeline: On -Going Staff. Bureau President (and staff as appropriate) Trade Groups/General Goal: To maintain communication with all relevant trade groups and other audiences as necessary. Strategies: 1. Develop and distribute a "Strategic Marketing Plan" (or Executive Summary) that communicates the mission and programs of the bureau. Timeline: Executive Summary - Annually Spring/Summer "Strategic Marketing Plan" - every 2-3 Years Staff: Bureau President (with cooperation/input from staff/committees) Note: These are tools for establishing guidelines for programs as well as communicating with various trade and professional groups what the bureau's mission and specific programs are. Such information is needed, for example, by member hotels annually for planning of their sales and marketing activities. FOOTNOTES: 1. Budgets and availability of funds may dictate a priority among projects that will be determined annually or as necessary. 2. Programming is based on the assumption, and the availability of funds, that the bureau will hire a staff person to serve as the Communications Manager and write the materials, coordinate the programs and monitor all projects. 30 MEMBERSHIP MARKETING Convention bureaus are by nature membership organizations. Though bureaus, for the most part, receive their largest funding contractually through public -raised revenues, they do have a variety of financial revenue sources, memberships being one of the most critical. Bureau members are "partners" in the marketing of a destination, in this case, the Newport Beach area. They are a fundamental part of the image that is developed and projected that draws attention to the destination as a viable meetings or leisure venue. Without their investment in the sales and marketing activities and programs of the bureau, the effectiveness of the bureau is limited. Members provide a distinctive quality of character for the destination, Newport Beach, by offering products and services to groups and individuals visiting the community. Membership marketing is a critical part of the bureau's total marketing programs; through such efforts, the bureau is able to share its story with community businesses, thereby enlisting their interest, involvement and investment. Members also demonstrate to various public bodies their interest and commitment in seeing that the bureau's mission and programs are fulfilled. Members are an important network within the community too, sharing information about the bureau to other prospective members as well as influencing decision -makers. Membership marketing -including membership development, retention and assimilation -is critical to the bureau having a well-balanced program of products and services to offer the consuming public. Below are outlined some of the goals and strategies for the Newport Beach Conference and Visitors Bureau for membership marketing. MEMBERSHIP DEVELOPMENT Goal: 1. To increase memberships 40% annually per year during the next two fiscal years (1990/1991, 1991/1992) toward a membership goal of at least 300 members. Strategies: 1. Through direct sales, to bring five (5) new members per month into the bureau during FY1990/1991 and seven (7) new members per month during FY 1991 / 1992 minimum. Timeline: Fiscal Years 90/91 and 91/92 Staff: Membership Manager with support of volunteers 31 2. To design and conduct a membership campaign blitz involving volunteers, including a theme, that will generate interest in bureau membership. Timeline: August 91 -August 92 Staff. Membership Manager with support of volunteers 3. Develop a membership referral service, asking current bureau members to provide names of prospective bureau members. Timeline: On-going Staff: Membership Manager 4. To develop and/or review as necessary membership solicitation materials and information (member services and benefits), to maintain a current image and perspective on behalf of the bureau and its programs; distribute as needed to prospective members. Timeline: Annually review materials; replace/reprint as necessary Staff. Membership Manager (in consultation with Bureau President) 5. To furnish each new member with a membership plaque and to maintain an inventory status at all times. Timeline: Annual Staff. Membership Manager 6. To develop a welcome letter and supplemental information and communiques for new members that will encourage their involvement and investment in the bureau. Timeline: On-going Staff: Membership Manager (with initial welcome letter from Chairman, Board of Directors) MEMBERSHIP ASSIMILATION AND RETENTION Goal: 1. To develop a 90% retention rate for bureau memberships annually. Strategies: 1. To host a new members breakfast that introduces the bureau, its mission and programs. Timeline: Quarterly (February, May, August, November) Staff: Membership Manager (with President/CEO and Board Chairman) 2. To develop and host a membership reception that will serve as a forum for networking as well as profiling member services (and be an update for bureau programs). Timeline: Quarterly (March, June, September, December) Staff: Membership Manager (with bureau members) 32 3. To profile bureau members and their services in the bureau's quarterly newsletter "NB Style". Schedule of member services to appear to be announced to membership in "Member Messages". Timeline: Quarterly Staff. Membership Manager/Communications Manager 4. Develop a renewal certificate for bureau members. Timeline: Fall -Winter 1991 5. Announce years (longevity) of membership in "Member Messages", quarterly newsletter or other communication tools. Timeline: On-going Staff. Membership Manager 6. Develop and Implement letters to bureau members throughout the year of their membership, from board members and the bureau president, that share information and encourage continued involvement with the bureau; develop a "feedback" system for bureau members to share their ideas and concerns with the bureau. Timeline: On-going Staff. Membership Manager 7. Distribute calendar of convention bookings to bureau members, including instructions on how to use the list to encourage business prospects. Timeline: Monthly Staff. Conference Services Manager 8. Distribute list of visitor inquiries to bureau members (labels can be purchased from bureau). Timeline: Monthly Staff. Conference Services Manager 9. Design, develop and distribute a "Visitor/Services Guide" that lists all bureau members and is used in response to visitor inquiries as well as servicing of group meetings. Timeline: March -September 1991 Staff. Membership Manager/Bureau President 10. Develop and hold an annual membership meeting (celebration of the year). Timeline: September -October Annually Staff. Bureau President with CVB Staff/Board Members 11. Develop a direct sales program for staff and board members to call on bureau members throughout the year regarding their interest and investment in the bureau and its programs. Timeline: On-going annually Staff: Membership Manager/Bureau Board Members/Volunteers 33 MEMBERSHIP MANAGEMENT Goals: 1. To computerize all membership files including member profiles, statements of investment dues and accounts receivables. 2. To provide adequate staff support for membership programs. 3. Evaluate membership investment levels. Strategies: 1. To computerize all membership files, profiles and accounts. Timeline: FY91/92 Staff. Bureau President/CVB Staff Note: Dependent on Availability of Funds and system costs 2. To provide staff support for membership programs through a portion of the staff time of a receptionist. Timeline: FY91/92 Staff. Receptionist Note: Decision based on availability of funds 3. Evaluate membership investment levels in light of bureau mission, programs and development/retention of bureau members. Timeline: Annual Staff. Bureau President/Board of Directors NOTE: All programs are subject annually to an assessment of priorities and the availability of funding. 34 ORGANIZATIONAL MANAGEMENT Convention and visitor bureaus are primarily marketing organizations whose mission it is to develop an image for a destination, in this case the Newport Beach area, "selling" that image to a variety of prospective clients who select the destination as their meeting or leisure venue, thus generating revenues and impacting, positively, the economic vitality of the community. The visitor industry is big business, requiring sophisticated management systems to support its programming; these support "systems" must be efficient and effective, reducing unnecessary loss or delay of time and allowing the bureau to fulfill its mission and attain its program goals. During the period August 1989 -March 1991, much has been accomplished in developing for the Newport Beach Conference and Visitors Bureau reliable and efficient management systems. Such items included (a) the completion of the bureau's first Personnel Manual; (b) the completion of the bureau's first Organizational Manual including job descriptions for staff and volunteers; (c) completion of the bureau's first comprehensive Marketing Plan; (d) computerization of the bureaus sales systems; (e) a major update of the bureau's Bylaws; (f) an evaluation of the bureau's membership program and investment schedule; and (g) the clarification of financial management systems including bringing inhouse pertinent aspects of such operations. This is not to say that the task is complete; but a great amount has been accomplished with and through the support of the Board of Directors. FINANCIAL MANAGEMENT Goals: 1. To maintain the fiscal integrity of the Bureau in all financial situations. 2. To maintain a balanced budget. 3. To develop operational and marketing reserves. 4. To explore and implement the development of additional sources of revenue for bureau programming. Objectives: 1. To provide timely and accurate financial reports as required. 2. To document thoroughly all financial transactions. 3. To monitor all obligations incurred by the bureau. 3. To reduce costs for maintaining financial systems and reports. 35 Strategies: 1. To prepare and present (or cause to be prepared and presented) in a timely manner all monthly financial statements and reports for review by the Executive Committee and/or Board of Directors. Timeline: Monthly Staff. Director of Finance/Administration (in consultation with the Bureau President, Chief Financial Officer and/or contracted accounting firm 2. Conduct an audit under the guidance of the Board of Directors. Timeline: Annual (September -October) Staff: Director of Finance/Administration/Chief Financial Officer 3. Monitor all contracts and payables in light of revenue sources. Timeline: Monthly Staff: Director of Finance/Administration Note: Work with Bureau President, CFO and Accountant (if needed) to monitor, examine and review contractual agreements and accounts payables. 4. Develop an initial annual budget based on projected revenues for presentation to the City of Newport Beach and the Bureau's Board of Directors including a revision based on the annual audit. Timeline: Initial Budget due City Hall April 1 Annually Revised Budget September/October Annually Staff. Director of Finance/Administration/Bureau President/Board of Directors S. Prepare financial reports/documentation for the City of Newport Beach. Timeline: Annual (as per letter of agreement) Staff. Director of Finance/Administration/Bureau President 6. Maintain all records and documentation in a timely manner in accordance with standard accounting practices, IRS or other legal guidelines, as outlined in the bureau's Personnel Manual (e.g. signature cards, mailing addresses etc). Timeline: Daily, Monthly, Annually Staff. Director of Finance/Administration/CVB Staff 7. Integrate and implement an automated financial system that will allow for the handling and processing of all payables, payroll checks and other accounting requirements inhouse. Timeline: March -June 91 implementation phase Staff. Director of Finance/Administration 8. To implement a program for generating alternative sources of revenue from such items as mailing labels, advertising, sponsorships and other related activities. Timeline: FY90/91 Staff: Bureau President 36 9. Explore with appropriate officials the options of increasing public funding for the bureau in order to maintain its marketing posture in light of surrounding competition (e.g. Anaheim, Long Beach, Los Angeles, San Diego, Palm Springs etc). Timeline: FY90/91 Staff: Bureau President/Board of Directors PERSONNEL MANAGEMENT Goals: 1. To monitor and review staff's professional performance. 2. To encourage and develop a professional "team" attitude among bureau staff. 3. To provide avenues for professional development and career enhancement. Strategies: 1. Conduct semi-annually professional performance reviews for each staff member of the bureau. Timeline: Semi -Annually in March and September Staff: Initiated by Bureau President/All Staff Involved Note: In accordance with Personnel Policy guidelines 2. Conduct periodic staff meetings for bureau personnel, to review current and future programs, dialogue about issues and concerns and to update regarding board actions. Timeline: At least 6 per year Staff: Bureau President 3. Encourage bureau personnel to develop and enhance their professional skills and competencies through available professional development programs and professional memberships/affiliations. Timeline: Annually (as available opportunities arise) Staff: Bureau President Note: Availability of funds may dictate flexibility/priorities. 4. Develop a nurturing and supportive atmosphere for bureau staff, encouraging them, the utilization of their skills and talents, responding to their needs, ideas and interests, and providing delegation of activities and responsibilities and the involvement in developmental programs; meet with individual staff members on a regular basis. Timeline: On-going Staff: Bureau President (with bureau staff) 01FA VOLUNTEER MANAGEMENT Goal: To encourage and develop, as appropriate, the involvement of volunteers in various bureau programs. Strategies: 1. To involve volunteers in the leadership of the bureau through participation on the board of directors. Timeline: Annual review of board candidates, Spring Staff: Nomination Committee (in consultation with Bureau President) Note: Process conducted in accordance with bureau policies with membership informed of timelines and availability for submitting nominations. 2. Provide a bureau orientation to new board members. Timeline: Annual (as needed) Staff: Bureau President (with the Board Chairman) 3. To involve interested bureau members on established committee and/or to work on specific programs or projects that may arise. Timeline: On-going Staff: Chairman of the Board of Directors/Bureau President Note: At the beginning of each fiscal year, committees are determined and membership identified/selected; other programs and/or projects may arise on an "as needed" basis (e.g. course guides for Spirit Run etc) and membership involvement will be requested/sought at those times. ADMINISTRATIVE/RECORDS MANAGEMENT Goal: To maintain efficiently and professionally all records and management systems. Strategies: 1. To review, edit and update the bureau's Organizational Manual and Personnel Manual. Timeline: Annually as necessary Staff: Director of Finance/Administration/Bureau President 2. To review, edit and update the bureau's Bylaws. Timeline: Annually as necessary Staff. Bureau President (with approval of Board of Directors) 3. To maintain and file historical information on the bureau. Timeline: Annually as necessary Staff: Director of Finance/Administration/Bureau President W* 4. To review, maintain and/or delete all records and files as governed by appropriate legal/procedural guidelines. Timeline: Annually as necessary Staff. Director of Finance/Administration 5. To continue to explore and/or discuss the issues related to a proposed tri - city area bureau. Timeline: FY90/91-91/92 Staff. Bureau President with Board of Directors Note: This discussion began during FY1989/90; it relates to a bureau that would represent the Newport Beach, Costa Mesa and Irvine areas, assuming the latter two communities developed funding levels par with the Newport Beach area. During the 89/90FY, the board delayed considerations of this idea pending further discussion and/or other cooperative programming that could be mutually developed between/among the communities. KW APPENDIX * Media * Leisure Market Trade Shows * Professional Affiliations .N MEDIA APPENDIX* A. Consumer Magazines Alaska Airlines - is a monthly inflight publication with a circulation of 44,000 aimed at affluent business and professional people. Its general editorial content consists of articles about sports, business, travel, arts and lifestyles. A reader response card is offered, editorial support will be taken into consideration but not guaranteed. America West Airlines - a monthly inflight publication aimed at the business traveler with articles ranging from travel and lifestyle to business and financial matters. With a monthly circulation of 125,000 and an average readership of ten people per copy this is an extremely cost effective buy. A reader response card is offered, editorial support is taken into consideration but will not be guaranteed. Bride's - is published bi-monthly with a circulation of 361,130. Bride's is edited for today's affluent couples. Editorial covers finance, travel, entertaining, food, fitness, fashion, health and home furnishings. Bride's, a Conde Nast publication, offers extensive merchandising opportunities, bridal show participation, reprints, co-ops, editorial support, ad cards, bonus circulation etc. L.A. Style - is "the magazine" for those in the Los Angeles area, featuring photography and illustration. L.A. Style celebrates the city with layouts on fashion, architecture, restaurants and interior design, taking a look at the arts and entertainment, travel and fitness. The magazine is published monthly with a circulation of 90,997. A reader response card is offered in selected issues, editorial is taken into consideration, reprints, bonus circulation and special events Promotions are also offered. MNI Home Network Magazines: Bon Appetit - a publication published monthly and aimed mostly at women. -The content focuses on recipes, wine and spirits, and travel destinations of epicurean interest. It is the major magazine in the Home Network. Home - magazine is edited for the American homeowner and home enthusiast. The subjects include architecture, building, remodeling, decorating, furnishings, landscaping, entertaining and tabletop. House Beautiful is devoted to the home. Dedicated to the subject of successful living at home, the magazine is devoted to decorating ideas. Other subjects included are architecture, design, antiques, collectibles, gardening and travel. There is also a monthly food and entertaining column that focuses on stylish menus and recipes. Metropolitan Home - contains coverage of home design, home furnishings, fashion, food, wines and spirits, entertaining, electronics and travel and defines the art of living well for quality conscious people. The magazine is published monthly and contains first-hand news and guidance toward achieving the reader's own personal style. Note: MNI doesn't offer a reader response card, however for a price we can tip -in our own card, ad cards are offered. L.A. Circulation: 58,440 S.F. Circulation: 157,320 -Tnis appendix of media resources (not comprehensive) was prepared 10/15/90 by InterCommunicationsInc for the Newport Beach Conference and Visitors Bureau. 41 San Diego Magazine - is published monthly with a circulation of 69,493. San Diego Magazine is a general interest city review published to examine critically the cultural, aesthetic, political and civic issues, affairs and problems of San Diego County and California. Regular features include art, literature, music, sports, fashion, travel and entertainment. A reader response card is not offered unless the ad appears in the formatted travel bazaar section. San Francisco Focus - covers the people and the issues, the arts and entertainment that are vital to San Francisco. This magazine is published monthly with a circulation of 185,000. Regular editorial covers fashion, food, home, interiors and travel with monthly coverage of restaurants, film, performing and visual arts. A reader response card is not offered unless ad appears in the formatted travel bazaar section. Sunset - is published for the 13 Western States including Hawaii. It is a "how -to -do -it" guide covering the areas of travel, food and entertaining, home and building, remodeling and gardening. It is published in four editorial zone editions so that contents can be localized within regions. The entire circulation is 1,393,015 and the Southwest regional edition has a circulation of 527,037 and covers Southern California, Arizona, New Mexico, Hawaii and Clark County, Nevada. Reader response cards are offered as well as numerous other merchandising opportunities. Town & Country - is a monthly publication edited for the upper-class taste with a circulation of 417,011. Departments include fashion, beauty, travel, architecture and design. Public services and philanthropy are widely reported on. Reader response cards are offered in selected issues, editorial will be taken into consideration but not guaranteed, ad cards are offered, and a direct mail list of subscribers can be purchased. Travel & Leisure - a monthly publication aimed at affluent travelers in their upper forties and lower fifties. Its contents explores the latest resorts, hotels, fashions, foods, and drink. The ad will run regionally in the California Edition which has a circulation of 145,000. A reader response card is offered, editorial is often guaranteed with corresponding stories, ad cards, reprints and bonus circulation are offered. 42 B. Consumer Newspapers Desert Sun - has a circulation of 54,528 in the cities of Palm Springs, Palm Desert, Indian Wells, Indio and La Quinta on a daily basis. Fresno Bee Modesto Bee Sacramento Bee - a combination newspaper buy with a combined circulation of 595,351. L.A. Daily News - published daily with a circulation of 214,205. L.A. Times - with a daily circulation of 1.2 million and 1.5 million on Sunday the L.A. Times is the circulation leader. San Diego Union/Tribune - reaches 45% of all San Diego households. The daily circulation is 388,754 and the Sunday circulation is 443,788. San Francisco Chronicle/Examiner - has a daily circulation of 709,961 and a Sunday circulation of 713,172. It is published daily and serves the greater bay area. San Gabriel Valley Tribune - has a circulation of 131,131. USA Today (Western Edition) - is published five days a week (Monday - Friday) with a circulation of 400,000. Each issue contains sections on News, Sports, Money and Life. Other features include a weather map and weekly columns. 43 C. Trade Publications Association/Meeting Nlarkets Association Management - is published monthly with a controlled circulation of 19,977. Association Management is written for professional association executives responsible for the management of trade, business and professional associations. The editorial content is directed to the educational needs of these executives, particularly in the practical application of business management techniques to voluntary organizations. An advertisers index is offered instead of a reader response card. Business Travel Mann ement - is edited for those involved in management and planning. It covers policy making as well as hands-on operations within the business travel marketplace. Each issue provides an exchange of information and ideas at the corporate level as well as within the ranks of travel suppliers and vendors. This publication is published monthly with a paid circulation of 40,215. A reader response card is offered. Has a new section called "Meetings Under 100." California Meetings Monthly - is published monthly with a controlled circulation of 20,000. This tabloid sized magazine is created for "High Profile Planners" who produce 10 or more meetings a year in California. A reader response card is offered. Convene - is published bi-monthly with a circulation of 7,000. Convene is edited for professional meeting planners and managers in the fields of health, science, education and engineering. Editorial includes news items and articles aimed at assisting the reader in the day-to-day business of planning and managing conventions of various sizes. The primary audience is professional association meeting planners, managers and CEO's for all non- profit 501(c) associations. An advertisers index is offered instead of a reader response card. Insurance Conference Planner - is published bi-monthly with a controlled circulation of 7,382. This publication is directed to conference planners and other executives in the insurance industry who are responsible for planning and conducting meetings, sales conferences, company conventions, training seminars and incentive travel programs. Editorial support is usually guaranteed with the placement of an ad. Medical Meetings - is published 8 times a year with a controlled circulation of 13,813. This publication is directed to meeting planners in the fields of medicine, dentistry, nursing, veterinary medicine and related health care disciplines. Editorial matter includes medically oriented features for planners from medical societies, healthcare associations, hospitals and pharmaceutical and biomedical manufacturing companies etc. An advertisers index is offered instead of a reader response card. Meeting News - is published monthly with a controlled circulation of 74,731. This publication covers the field of conventions, meetings, training and incentive travel programs. It is edited for meeting planners in business, associations, government, and other agencies. The main emphasis is on corporate and association conventions and meetings with substantial coverage given to training programs with incentive travel. Resorts & Incentives - edited for planners of resort meetings and incentive travel. Editorial emphasis is on group destination options (domestic and overseas) as well as the creative and recreational aspects of resort meetings and incentive travel. Free merchandising extras include videos, use of circulation lists, customized market research and a reader response card. The circulation is 43,250 and the magazine is published on a bi-monthly basis. Successful Meetings - is published 13 times a year with a controlled circulation of 77,223. This publication is edited for corporate and association executives who are regularly responsible for planning and managing off -premise meetings, training programs, conferences, conventions, trade shows and incentive travel programs. Editorial covers news of interest to the meeting industry. A reader response card is offered. Western Association News - is published monthly with a controlled circulation of 12,649. This magazine contains news and information of interest to association officers, meeting planners and staff executives. Feature articles discuss management problems and solutions related to tax status, lobbying, trade shows, meetings and conventions of volunteer member associations. A reader response card is offered. Tour Planners/Wholesalers ASTA Agency Management - is a monthly publication with a controlled circulation of 20,027. The editorial analyzes the "Business of Travel." The magazine is written for travel agency owners and managers with primary editorial emphasis on profitable travel agency operations and reporting of industry -wide trends. Courier - has a circulation of 5,241 (subscription and controlled) and is published monthly. This magazine carries information on the group travel industry in North America. Feature articles focus on the topics of interest to tour companies, such as effective consumer advertising strategy, and to business and organizations that provide a service to tour operators such as how hotels can market themselves to the group tour industry. Mise./Others Incentive - is a magazine focusing on motivation in management and marketing. It reports on how companies maximize their overall performance by motivating consumers and dealers to buy, salespeople to sell and all employees to work more effectively. A reader response card is offered. The magazine is published monthly with a circulation of 40,212 (controlled). Training & Development Journal (ASTD) - is published monthly with a paid circulation of 29,984. This publication reports on controversial issues in the field of human resource development. Feature articles cover various aspects of human development in the workplace, ranging from individual training in specific skills to system -wide strategies for corporate change. Columns and departments report on new training tools, books and the best practices in training and workplace trends. �-1 D. International Publications Asia Travel Trade - is edited for administrative marketing and sales executives in the travel and tourism industry in the Asian and Pacific areas. Canadian Airlines Magazine - is an inflight magazine published monthly and distributed on the airlines. The circulation is 150,000. Canadian Travel Courier - is a trade publication for Canadian travel agents. This tabloid sized magazine is published weekly with a circulation of 16,500. Daily Telegraph - a national newspaper covering news in the United Kingdoms and worldwide. It also has coverage of international sports, investment and business, and has a full daily listing of the stock market. Feature pages cover social and political subjects, the arts, fashion, family life, travel, cookery and leisure. Regular special surveys take a look at subjects like defense, medicine, business travel and office automation. The circulation is 1,103,050. Hotel & Travel Index - International Edition McCleans - a Canadian general news magazine (similar to TIME), published weekly with a circulation of 600,000. Official Meetings Facilities Guide - European Edition - used by meeting planners in Europe. This publication has a circulation of 8,100 and is published semi-annually. The European - The first full color broadsheet newspaper for a united European market, providing comprehensive coverage of international news, business and finance, sports, plus a whole tabloid section dedicated to European arts, culture and lifestyle. The Times of London - covers the world of finance and business, reporting on economics, technology, commerce and worldwide trends. The circulation is 441,522. Travel Age Europe - edited for travel agency sales forces in Europe. The circulation is 33,662 (controlled) and the magazine is published weekly. Travel Trade Canada - offers both editorial support and a reader response card. This magazine is published monthly with a circulation of 13,280. It is written for the Canadian travel trade, specifically those agents selling travel. The format consists of product destination information, especially in the United States as well as current events within the travel industry. U.S.A. Today - Asian Edition - is published Tuesday through Saturday. The circulation is 13,000 and it is distributed throughout Asia. Wall Street Journal - Asian Edition - circulation 37,093. Published on Monday and is circulated throughout North America, Canada and Europe. Wall Street Journal - European Edition - circulation 44,758 2 Encore Publishing Bellevue Philharmonic Orchestra Program Pacific Northwest Ballet Programs, Seattle Seattle Opera Program Seattle Symphony Program Seattle Repertory Theatre Program Stagebill Grout) San Francisco Symphony Universal Amt)hitheater Concert Program Guide - Los Angeles Mony Golf Tournament Program - La Costa Nissan L A Ooen Golf Tournament Program - Los Angeles Nabisco Dinah Shore Golf Tournament Program - Palm Springs Frank Sinatra Celebrity Golf Tournament - Palm Springs Bob Hot)e Chrysler Classic Golf Tournament - Palm Springs 47 E. Programs & Directories Denver Arts Center Programs Colorado Symphony Orchestra Denver Center Theatre Company Robert Garner Center Attractions Colorado Ballet Denver Chamber Orchestra Opera Colorado Children's Chorale Pageant of The Masters/Festival of The Arts - Laguna Beach Performing Arts Network L.A._ Edition Dorothy Chandler Pavilion Ahmanson Theatre Mark Taper Forum Hollywood Bowl Pantages The Wilshire The Pasadena Playhouse The Schubert Theatre San Francisco Edition War Memorial Opera House The Geary Theatre The Curran Theatre The Golden Gate Theatre The Stage Door Theatre The Palace of Fine Arts Theatre The Orpheum Theatre San Diego Edition San Diego Performing Arts Center The Simon Edison Theatre The Old Globe Theatre Copley Symphony Hall The San Diego Civic Theatre The Mandell Weiss Center W. i' w w OWLli V- r C7 N W Lei ri) L, w `x"' W d W V7 d W c O W to O w r -I .400Ea ilc>•,I V) d H Q (A ¢ N N V)N U 0 r V1 V) E v Q 4 rd r -q O QQ O O .0 w r1 .0 a V O Qrl41 IO (a U) Kl m N M M >, ro m �4 Q' a O Z � 1-4 wb ra u] ul r -q U) 3 H ►+ W � � 4 w 41 O 7r LI _IJli � w U O w w J 1 1 I [74 m E 3 H� 1 p U) 4-J E w w w OWLli V- r C7 N W Lei 0 d yQ, w `x"' W d W V7 d W ¢ W d IL W V) d H Q (A ¢ N N V)N V7 N N V1 V) 4 ie O 4 o ¢ b d c� d o d 0 Q 0 d o Q W O IO Ip U) Kl m N M M tt !t a O Z O ►+ W � � 4 w J 1 1 I 1 1 I 1 I 1 1 4. m4y W V tor d W v in uj H Z O 1•- 1•- 1 � d O O C O m .-1 O pO O O � O O C. S {�� V) b C 1 .�± p U O p O W SO 0 O W O W vi �� N 7 w uOW � Q2 NN CD O w C3 03 O O o o O O N W OO O N 0O Ln p a p p W 00 GAG 1� !� H N N .-t cul 1+ cn Z N '+ Lnw ' 'C: w w w z LLl w W z aci w w woff_ w w INC C CL z x z a O C a i •• a c! oa z .. .p ., x CaL, Q Q d Q ~ 6 Q n 4 o. d a 4 n a Z a0. Q Y as a 6 Q Z oma. 1 N tY m U w z � Q W a w F 4 a F w cX Q O ax a x v z 1-- W N G. W O C F, m H 3 d N U 0 H ld- L4 W b ra ro O co tT r -I O ro N .LZ O .rq J -I E, O 44 H PROFESSIONAL AFFILIATIONS There are a large number of professional associations with which a destination through its convention and visitors bureau needs to maintain affiliation if rapport and credibility are to be established in any of its sales and marketing programs. Such organizations include the following (divided into two basic categories -meetings and leisure markets). MEETINGS MARKET American Society of Association Executives (ASAE) Organized in 1920, ASAE is the premier association for association executives; it retains a high level of credibility among association leadership, provides educational and training seminars for staff and CEOs, and hosts several exhibitions annually. Membership: 2500+ Publishes: Association Management and Leadership. Based in Washington D.C. American Society for Training and Development (ASTD) This organization is a forum for those involved with corporate educational programming; membership is made up of a variety of audiences including professional trainers and those who work with developing training or educational seminars. Publishes a training journal. Based in Washington D.C.. Council on Engineering and Scientific Executives (CESSE) CESSE deals with engineering and scientific associations whose membership holds an array of meetings. Based in Washington D.C.. Greater Washington Society of Association Executives (CWSAE) This is an influential regional association that caters to those association executives in the Washington D.C., Virginia and Maryland areas. Sponsors a Springtime trade show, numerous monthly luncheon meetings and educational programs. Publishes Executive Update. Based in Washington D.C.. Insurance Conference Planners Association (ICPA) Membership is responsible for meeting planning in the insurance industry. It has a publication entitled Insurance Conference Planner and holds an annual meeting. Must be a member of HS&MAI for access to their annual meeting. Based in Omaha, Nebraska. International Association of Convention and Visitor Bureau (IACVB This is a bureau's professional association with more than 350 bureaus represented internationally in 22 countries. Founded 75+ years ago on the premise of exchanging meeting information between member cities. CINET continues that practice for those who subscribe. Host an annual meeting, and educational seminars. Based in Champaign, Illinois. Meeting Planners International (MPI) With over 9,000 members in many countries throughout the world, MPI contributes to the increased professionalism of meeting planners. Host an annual convention plus numerous educational programs. Has many chapters throughout the US and Canada. Publishes Meeting Manager. Based in Dallas, Texas. Metropolitan Los Angeles Association Executives (MLAAE) A professional membership of association executives in the Southern California region; hosts monthly luncheons, membership meetings, educational seminars, and an annual trade show. Publishes a 50 TS •(itolja(j UT poseq) lalialsmou sagsilgnd •siougll 3o Ino paseg pOT 3o ssaoxa m dTgslagtuoiu ql!m Isomp!tu oq luT slaiTlm aaueJ 001j pue sloitpa `slaiTlm lanell Iepuan13uJ M,LMWSIOI! zM IaALIJ L IsannpIW • rujojquD `ofaTA uoissiW ui Aueduioo Iuauia2e utu glim paseg 'T6/066T IIT saaualajuoa 1ofura omi pajsoH •sdTgslaquiauT 2msuomm `dTgslapeal pue alnjonlis sit uT o2uego e siaaUal 16/066T 'uoi2o i eiuloppo ulaglnoS oql loj uoijumosse 2mialma anTjeladooa a se 3losil dolanap of Ouildiuolle sT uoiluziueilo sigl `eTuloj!leZ) IIlagjnoS jo uoijeiaossd mspnoL oql se umoul Allauiio3 DSU!u.iojjjeD ujoglnoS uoileuilsaQ •eiuloRITOD `oluauielaeS ui paseg •ung OUTaed pue odoing `epeurD of suoissim opuil saleuiplooD •sla3Jleui opelj pup lauinsuoa ssalppe jegj suoilmggnd saieuiplooD •aieis agl inogOnolgj sossouisnq pue s,ijTo 1o3 su m2old anilelad000 s1ajjp •a3uala3uo3 msimol Jenuuu ue slsoH •loulaAOD mau glTm IIOTlisnell uT T661 III-Aouo2u u1simol s,aleis oql sT "JL ,LODuisimojL 3o a3j330 LIuioj!ILD •AITg jioA moN uT paseg •slolipa pup sjsgeulnof lanell jo posodmoa `satdoo u0gPUT OOT Jo uoijelnono lelol a 2uiluosaldal slagiuom OOti uegi aloW g,LVVs1011pg IaAVJ L Jo uojjLItaossd U73311aurd S,taxxvw wSRi o aII1SIn •sammoxg uoilemaossd jo AjaiooS o2eou oql pue `saminoaxg uotletoossd To uoiielapa3 eTu1OMO `.saniinooxg uoijumossV 3o AjomoS oasiouel3 ueS agj :sanTjnaaxg uoiwmossv jo Aimos ojuaurelaeS :opnlOm 11om Aeiu neamq oql gatgm T{ITm suopeztue�lo lagip d� `oluoturious ut paseg (Xluo eiulo3Tle3) snaneo 0nTlelsT301 a seq osld •j?uiwuTel2old leuoileonpo se Ilam se uoileuTlo•IuT uoTluanaoa Jo a3ueg0xa ue 2uiptnold "M pue ` ZV "AN "(ii `•dM ` do `'do uT snealnq siuosaldal uoijeziue2lo sr I gADVAk snuojng .IolisiA PUL, uolTuanuoD Jo uotleraoSSV ujolsom :110A MON uT paseg -Ajislaniun leuoijeanpo lenuue up slosuodS •slauueld lanell anTluaaIIT 3o pasoduioo sT dtgslaquiaW •2uTuueld Janell anTluaauT UT aauaJlaoxa 3o imslnd aql oI pajonap sT leg) uoTlETaosse leuoissa3old e sisTgZ g.I.IS saniinaaxg IaAUJI aAtjuaaul 3o A10130S TrulolTleo `Aalaluow uT paseg •puaije of olq!2go oq of paieaTsop ,00Tuas,, oq of aneq Inq 2utloota lenuue slosuodS •slauueld alelodloa lol luauidolanap sllnls pue Outumij uo sosnao3 uotezme2lp •slauueld ojelodloa lo3 llomiou a se Ap..muTT1d popuno3 WDS slL'uoissaJoid llugoow Qlai0irioD jo x1opos •euieq IV `uieg2EquT1Tg uT paseg •auanu00 sogstlgnd •uoTluanuoa lenuue ue isoH •`dunrueld 2upaauT lo3 uoilmnpo uo sosnoo3 •066T uT soilled polsololut IIB of dtgslaquTauT pouodp •suoissa•Jo1d algia gileag put,leotpouT oql moll XpjLulTld slauueld 2upootu pue santlmoxo uopr oosse qvm suoTleToosse !?IItmo12 jsoise3 oql 3o aup VWDd u0jMi30ssV luauia nunW uoiauanuoDIeuotssa3oid eiulo�Tle� `euopesed UT paseg •laljalsmau National Tour Association (NTA Composed of more than 450 tour planners, hosts annual and spring trade shows allowing suppliers to have appointments with tour planners. Publishes Courier plus "Tuesday" newsletter. Based out of Lexington, Kentucky. Society of American Travel Writers (SATW) 700 prestigious members including writers and editors. Hosts annual convention. Based in Washington D.C.. Travel Industry Association of America (TIAA) An industry organization composed of members of the travel industry, representing some 1500 companies. Publishes monthly newsletter. Hosts annual International Pow Wow. Brings together domestic and international suppliers for business. Works with U.S. Travel Data Center for development of statistics on travel industry including indicators and trends. Works with Government Affairs Council on legislative issues in the US Congress. Hosts with Government Affairs Council annual Unity Dinner. Based in Washington D.C.. Travel and Tourism Research Association (TTRA) An association that focuses on travel research; hosts an annual update on travel trends. Members also obtain the Journal of Travel Research plus a periodic newsletter. Based presently at the University of Utah but will be obtaining new management. United States Tour Operators Association (USTOA) Founded in 1972, small but powerful membership of major tour operators that have domestic and international programs. Based in New York City. United States Travel and Tourism Administration (USTTA) This is the United States' official marketing agency. It provides a variety of information particularly about international destinations. Documents travel into and out of the US. Cooperates with other organizations to sponsor an annual update on travel trends. Has overseas offices; will cooperate with those interested in overseas travel missions. Based in Washington D.C.. 3/91 52 BOARD BIO -SKETCHES NEWPORT BEACH CONFERENCE AND VISITORS BUREAU Board of Directors 1990-1991 The Newport Beach Conference and Visitors Bureau would like to introduce to you the many community volunteers who are contributing their professional time and talents to support the mission and programs of the Bureau as members of the Board of Directors. TOM LIMBERG - Chairman A native of Southern California, Tom is currently the General Manager of the Newport Beach Marriott Hotel and Tennis Club. He has been with Marriott Corporation for more than 17 years, serving as a general manager in Houston, Texas prior to his return to Newport Beach. His management career has seen many fascinating assignments including resident manager in Denver, Colorado and at Rancho Las Palmas, Rancho Mirage, California. He was Director of Room Operations at the AMFAC Hotel in Dallas prior to joining Marriott Corporation. During 1990, he was president of the Newport Center Association; presently he serves as vice president of Center Ride, and is a member of the Commodore's Club with the Newport Harbor Area Chamber of Commerce. Wife: Becki. 2 Children (ages 7 months - 4 years). JIM DALE - Vice Chairman Jim is President of Villa Nova Restaurant, and a long time active resident of Newport Beach. He is currently the President of the 552 Club for Hoag Hospital; he is past president of the Newport Harbor Area Chamber of Commerce, ATSC, and currently a board memberd for the Newport Beach Sister City Association. He also serves on the South Coast Chapter Board of Directors for the California Restaurant Association. Prior employment with Wometco Enterprises, Inc. led him to such cities as Miami and Tokyo. Jim holds a Bachelors from Chapman College and a Masters of Informational Management from the Thunderbird Graduate School of International Management. Wife: Gretchen. Three Children (ages 11-15). JACKIE MANION- Secretary Owner of Newport Travel Concepts since 1987, Jackie's career in the travel industry has impressive credentials. A former manager with Ambassador Travel, she was a reservation/ticket representative with United Airlines and a flight attendant with Delta Airlines. Educated at William & Mary Extension (VA.), her professional career has provided her with extensive training through the airlines; currently she is a member of the Pacific Asia Travel Association (PATA), Cruise Lines International Association (CLIA), Association for the Promotion of Travel to Africa (APTA) and the American Society of Travel Agents (ASTA). She serves as an area director and membership chairman with the Newport Harbor Area Chamber of Commerce. Husband: Jim. 3 Children (ages 17-22). 53 HAROLD S. SCHULTZ - Chief Financial Officer Hal is a Certified Public Accountant (CPA) and Managing Partner for Coopers & Lybrand, one of the top accounting firms in the nation. He has been with Coopers & Lybrand since 1972. Hal holds a Bachelors of Business Administration from California State University Fullerton and a Masters of Divinity from Eden Theological Seminary. His professional affiliations include the American Institue of Certified Public Accountants, the California Society of Certified Public Accountants, Financial Managers Society, and serves as a board member for the World Trade Center Association of Orange County. He is involved in many community activities including board member for the Industrial League of Orange County, board member for the Merchants and Manufacturers Association, trustee for the South Coast Repertory and the Irvine Barclay Theatre, board member for the Performing Arts Fraternity, United Way campaign cabinet, board member for Pilgrim Pines Camp, board member for the Southern California Conference of the United Church of Christ, Executive Committee for the UCI Graduate School of Management Corporate Partners, Executive Committee for the California State University Fullerton School of Business Administration and Economics Executive Advisory Board, UCI Daniel Aldridge Society, Business Committe for the Arts and Chairman for the Industry League Credit Unit. Wife: Melody Anne. Three Children (ages 9- 16). BOB BLACK - Director A successful businessman, Bob is President of Catalina Passenger Service and a long time resident of Newport Beach. A graduate of Newport High School, he attended California State University Long Beach majoring in business. Currently a member of the Commodore's Club and the Newport Harbor Area Chamber of Commerce, Bob is active with the Balboa Improvement Association. Wife: Kathy. 2 Children (ages 9-11). SERGE DENIS - Director Serge is General Manager of the Le Meridien Hotel which he assumed in August 1990. He has been with the Le Meridien Hotel corporation since 1976. A graduate of the Hotel Technical College in Caen, France, he has completed additional educational studies at Michigan State University and Cornell University as well as the INSEA Executive Program/European Institute for Advance Education (Summer 1988). His professional affiliations include the French American Chamber of Commerce, New York SKAL Club, New York Executive Club, Chaine Des Rotisseurs Southern Chapter, Les Amis D'Escoffier Society, the American Hotel & Motel Association and the International Hotel Association. He is also a member of the Orange County Industrial League. Wife: Jane. 54 PATRICIA ENGFER - Director Pat is General Manager of the Hyatt Newporter Hotel. Employed with Hyatt Corporation since 1977, she was general manager of the Hyatt Edgewater Hotel in Long Beach prior to moving to Newport Beach; hotel manager for the Hyatt Regency Los Angeles and the Hyatt LAX; general manager for the Hyatt City of Commerce; and held various other management positions with Hyatt in Hilton Head (SC), Pittsburgh (PA), Atlanta (GA), Chicago (ILL) and Los Angeles (CA). She holds a Bachelors of Science in Parks, Recreation and Conservation from East Carolina University, Greenville, North Carolina. She is involved on the board of directors for the Newport Harbor Area Chamber of Commerce; board of directors for Hoag Hospital; and a member of the California Hotel and Motel Association. In her spare time she is learning Spanish. Husband: Don. 2 Children (ages 18 months -5 years). THOMAS GURTNER - Director Tom is General Manager of the Four Seasons Hotel." A "Certified Hotel Administrator" (CHA) through the American Hotel and Motel Association, he has been General Manager of the Westin Hotel, Washington D.C., General Manager and Vice President of the Westin Illikai and General Manager of the Wailea Beach Hotel. Educated in Zurich, Switzerland, he is professionally affiliated with the Confrerie de la Chaine des Reotisseurs and SKAL; he also serves on the board of directors of the Newport Center Association. A member of the Newport Beach Country Club, he enjoys skiing, tennis and golf. Wife: Nui. 3 Children. BILL HAMILTON - Director The 1989 Citizen -of -the -Year and long time resident of Newport Beach, Bill is President and owner of The Cannery Restaurant. Prior to buying the Cannery in 1973, he was President/CEO of Baron Blakeslee Inc. Bill holds his Bachelors of Science in Mechanical Engineering from the California Institute of Technology; he also attended the Midshipmans School for the United States Navy at Columbia University and the Passenger Vessel Operating School for the U.S. Coast Guard. He is a licensed Captain with the United States Coast Guard; a member of Tau Beta Pi Engineering Society; a Licensed Mechanical Engineer with the State Board of Professional Engineers; and Past Chairman for the Newport Harbor Area Chamber of Commerce. Active within his community, Bill is a director for the Newport Harbor Area Chamber of Commerce; Skipper of the Commodore Club; director for the Newport Sister City Association; Founder of the Clean Harbor Days; director for the Orange County division of the California Restaurant Association; member of the Newport Beach Bicentennial Bill of Rights Committee; and director for the Orange County Coast Association. Other recognitions have included Silver Anchor Awardee in 1982 and Commodore of the Year 1987. Wife: Helen. 3 Children. 55 HERRICK HANSON - Director Owner of the Little Inn On The Bay, Herrick has been a long time resident of Newport Beach. He has been involved in real estate investments over the years assuming ownership of the Little Inn in 1975. Herrick holds a Bachelors in Economics from Washington & Lee University. He currently serves on the board of the Newport Harbor Area Chamber of Commerce, Foundation Board for the Newport Beach Public Library, Santiago Systems Advisor for the Newport Beach Public Library, and a graduate of the Leadership Tomorrow program. Herrick is actively involved in the Literacy Program through the Newport Beach Public Library, and received the Ambassador Award in 1990. Wife: Jan. 2 Children. JACKIE HEATHER - Director A long time resident of Newport Beach, Jackie has had a distinguished public service career, serving on the Newport Beach City Council 1978-1986 and as Mayor from 1980-1983. She served on the Planning Commission from 1971-1978 and as chairman from 1976-1978. She is a past member of the California Coastal Commission from 1979-1981. She has been the State President of the Planning Department for the League of California Cities, Past Chairman of the Board of the American Heart Association for Orange County, and Past President of the Orange County Medical Auxiliary. In 1974, she was recognized with the Athena "Woman of the Year" award; she is also the recipient of the American Association of University Women "Community Service Award", the YWCA "Community Service Leadership Award" and the Charter 100 "Woman of the Year" award. A journalism graduate of the University of Cincinnati, she has been a frequent writer for the Orange Coast Daily Pilot, a free lance writer, editor of the alumni magazine for Ohio State University and worked in advertising with Proctor and Gamble. Husband: Loren. 2 Children. ROBERT LITTLE - Director Bob currently is President of Irvine Retailer Properties Company. With more than twenty years of experience in the retail industry, Bob was Senior Vice President of JMB Urban Development Company of Los Angeles and has worked with the Rouse Company and May Centers. He has professional affiliations with the Urban Land Institute and the International Council of Shopping Centers. He holds a Bachelors in Business Administration from Babson College, Boston. Wife: Diane. 3 Children. RICHARD LUEHRS - Director Richard is President of the Newport Harbor Area Chamber of Commerce, assuming that position in 1982. The Chamber has over 1200 members. During 1990, he served as President of the California Association of Chamber of Commerce Executives (CACCE); Chief Financial Officer for the Newport Beach Conference and Visitors Bureau; and a member of the Southern California Association of Chamber of 56 Commerce Executives (SCACCE). He began his career as executive vice president and manager of the North Hollywood Chamber of Commerce in 1978. He has also served two years as the president of the Federated Chamber of Commerce of Orange County, a 26 -member chamber executive program. Richard holds his Bachelors of Science degree in Business Administration from California State University at Northridge, specializing in accounting and marketing. In 1986, he completed the six- year program at the U.S. Chamber of Commerce Management Institute. Richard has served three years as chairman of the Baden Powell District for handicapped Boy Scouts of Orange County, and currently serves on the board of directors for the 552 Club for Hoag Hospital; and chairman of the City of Newport Beach's Commission on Environmental Quality Affairs. He is a former recipient of the 'Businessman of the Year" award, former chairman of the United Chambers of Commerce of San Fernando Valley and past president of the North Hollywood Jaycees. Wife: Susan. ROBERT PAGE - Director Bob is President and Chief Executive Officer of Page Group Publishing Inc.; prior to coming to the Newport Beach area, Bob was President, Publisher and Chief Executive Officer of the Chicago Sun -Times Company whose holdings included the Chicago Sun -Times, the second largest circulation newspaper in the United States. He directed in the 1982-1983 the revitalization of the Boston Herald as President and Publisher. Prior to that he was Vice President of News America Publishing Company and President of Times Newspapers of Great Britain USA for Rupert Murdock; General Manager of the San Antonio Express -News; editor of the San Antonio Light, Vice President and General Manager of United Press International. He earned his degree from Illinois Wesleyan University. He has served on the John F. Kennedy Memorial Library Board, Greater Boston Chamber of Commerce, Chicago Association of Commerce and Industry, the Children Memorial Hospital, Newspaper Advisory Bureau, UPI Advisory Board and currently serves on the Board of Trustees of Illinois Wesleyan University. Bob is also a member of the board of Opera Pacific and the Newport Harbor Area Chamber of Commerce. Bob is listed in Who's Who in America. Wife: Nancy Merrill. MARGO REPTA - Director Margo is General Manager of the Marriott Suites Newport Beach. Twelve years with the Marriott Corporation, she has been with nine hotels including the Santa Barbara Biltmore, Rancho Las Palmas Resort, Key Bridge in Washington D.C., Farmington Marriott in Hartford, CT., LAX Marriott, and the Anaheim Marriott, with management experience in front office and housekeeping operations. Prior to assuming her current position, she was the resident manager of the JW Marriott in Century City. A native of Santa Barbara, she received her Bachelors degree in Health Services from San Diego State University. 57 BARBARA SLOATE - Director Barbara has served on the bureau's board since its inception in 1974. She is President of At Your Service Enterprises, Inc., which operates as Whirl -A -Round Tours, a destination management company. Prior to the founding of her present company in 1974, she was with At Your Service Party Planning and Catering. A long time resident of the area, Barbara has been actively involved with the Newport Harbor Area Chamber of Commerce; Silver Circle Executive Committee for the South Coast Repertory Theatre; Special Events Committee for the UCI Women's Opportunity Center; and the Capistrano Valley Symphony Treble Clef Guild. She attended Los Angeles City College. Her professional affiliations are impressive including serving on the board of directors of the Anaheim Convention and Visitors Bureau and the Southern California Riviera Visitors Bureau (including being their Vice President of Marketing). She is also active with Meeting Planners International Southern California and Orange County Chapters; Long Beach Visitor Council; Los Angeles Visitor and Convention Bureau; International Special Event Society and the Professional Convention Management Association. In 1990, she was instrumental in the planning of the MPI educational conference coordinated tour programs for attendees held in Long Beach. Husband: Mark. 4 Children (ages 23-32). MICHAEL STANKO - Director Mike is Vice President and General Manager of the Balboa Bay Club, having been with the company since 1979. Prior to that, he worked with Marriott and Hilton Corporations. He attended the University of Colorado. He is very active with the Newport Harbor Area Chamber of Commerce and the 552 Club at Hoag Hospital. He serves on the board of directors of Coastal Motion, a Transportation Management Association for the West Newport Beach area. Wife: Phyllis. 2 Children (ages 17-20). JOHN C. WEBBER - Director Jack is General Manager of the Sheraton Newport Beach; he has been with Larken Hotel Corporation since 1986, and has served as Larken District Manager. He has also been regional, general manager with Brock Hotel Corporation and the Americana Hotels. Jack holds his Bachelors in Economics from the University of Iowa and a Masters in Hotel Administration from the University of Michigan. He serves as a regional board member for the American Hotel Association and is a member of SKAL. Interests include Mended Hearts and antiques. Married. M LOUISE WRIGHT - Director Louise returns as the newest member of the board after a short absence. She is the Area Sales Manager for American Airlines, and has been with that company since 1968. A long time resident of the area, Louise graduated from California State University Long Beach. She has been active with Childhelp, the North Laguna Community Association and School Power. Husband: Wayne. Below is a brief bio -sketch of the Bureau's President/CEO. RICHARD B. GARTRELL - President/CEO 3/91 Richard assumed his current position as President/CEO of the Newport Beach Conference and Visitors Bureau in August 1989; bringing more than fourteen years of experience to the Newport Beach area, he was prior to his arrival President of the Ann Arbor Convention and Visitors Bureau (Michigan) and former state travel director for the Nebraska Department of Economic Development. A native of California, Rich holds his Bachelors in Communications (1964) and Masters in Organizational Communications (1969) from San Francisco State University and did his doctoral studies in Communication Theory at the University of Nebraska. Author of the industry's first textbook entitled Destination Marketing for Convention and Visitor Bureaus (1988), Rich is a "Certified Travel Marketing Executive" and a "Certified Tour Professional" and a candidate (1991) for the "Certified Association Executive" designation. He has an educator background too, having served on the faculty of Michigan State University (tourism) and the University of Michigan (business communications). He has frequently been called upon to lead professional seminars on bureau organization, leadership and marketing which have taken him to Japan, Malaysia, Europe and Australia. Area commitments include serving on the board of directors for Leadership Tomorrow; secretary on the board of directors for Coastal Motion, a West Newport Beach transportation management association; advisory committees for Seafest and Irrelevant Week; and board member for the Tourism Association of Southern California. Wife: Joan. 2 Children (ages 13-21). M NEWPORT BEACH CONFERENCE & VISITORS BUREAU REPORT AND FINANCIAL STATEMENTS JUNE 30, 1990 CERTIFIED PUBLIC ACCOUNTANTS LESLEY, THOMAS, SCHWARZ & POSTMA, INC. • CERTIFIED PUBLIC ACCOUNTANTS Independent Auditors' Report To the Board of Directors of Newport Beach Conference & Visitors Bureau Partners George M. Lesley John Postma 11 Thomas G. Clam Thomas R Madigan R Lawrence Friend Cory G. Youngberg March 11, 1991 We have audited the accompanying balance sheet of the Newport Beach Conference & Visitors Bureau (a nonprofit corporation) as of June 30, 1990, and the related statements of activity and changes in fund balance and cash flows for the year then ended. These financial statements are the responsibility of the Bureau's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Newport Beach Conference & Visitors Bureau (a nonprofit corporation) as of June 30, 1990, and the results of its operations and cash flows for the year then ended in conformity with generally accepted accounting principles. C, I Y4�-4� vx-:'�' 2244 West Coast Hwy., Suite 100 • Newport Beach, CA 92663 • Phone: (714) 650-2771 • Fax: (714) 650-6373 14081 Yorba Street • Tustin, CA 92680 BALANCE SHEET ASSETS CURRENT ASSETS Cash and cash equivalents (Note 2) Service fee receivable Member dues receivable Other current assets Total current assets FURNITURE AND EQUIPMENT, NET (Notes 2, 3 and 5) DEPOSITS LIABILITIES AND FUND BALANCE CURRENT LIABILITIES Accounts payable and accrued expenses Total current liabilities COMMITMENTS AND SUBSEQUENT EVENTS (Notes 4 & 5) FUND BALANCE (Note 6) See accompanying notes to these financial statements $ 91,200 89,941 8,975 5,945 196,061 29,757 3,685 229.503 $ 72,296 72,296 157,207 $ 229.503 STATEMENT OF ACTIVITY AND CHANGES IN FUND BALANCE YEAR ENDED TUNE 30, 1990 REVENUES Service fee revenue $ 599,688 Membership dues 349751 Other income 8,430 Total revenues 642.869 EXPENSES Marketing expenses 451,720 General and administrative 246,381 City transportation improvements fee (Note 4) 50,000 Total expenses 748,101 DEFICIENCY FROM CURRENT ACTIVITY (105,232) FUND BALANCE, June 30, 1989 as previously stated 313,038 PRIOR PERIOD ADJUSTMENT (Note 6) (50,599) FUND BALANCE, June 30, 1989, as restated 262,439 FUND BALANCE, June 30, 1990 15 7.207 See accompanying notes to these financial statements NEWPORT BEACH CONFERENCE AND VISITORS BUREAU STATEMENT OF CASH FLOWS YEAR ENDED TUNE 30, 1990 CASH FLOWS FROM OPERATING ACTIVITIES: Deficiency from current activity $(105,232) Adjustments to reconcile deficiency from current activity to net cash used by operating activities: Depreciation 3,548 Change in assets and liabilities: Decrease in service fee receivable 48,302 Increase in member dues receivable (7,475) Increase in other current assets (5,945) Increase in deposits (3,685) Decrease in accounts payable and accrued expenses (37,972) Total adjustments (3,227) Net cash used by operating activities (108,459) CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of furniture and equipment (25,178) Net cash used by investing activities (25,178) NET DECREASE IN CASH AND CASH EQUIVALENTS (133,637) CASH AND CASH EQUIVALENTS, June 30, 1989 224.8L7 CASH AND CASH EQUIVALENTS, June 30, 1990 91,200 WWI9 iC I1 NOTE 1 - ORGANIZATION The Newport Beach Conference and Visitors Bureau (the "Bureau") is a nonprofit corporation formed under the laws of the State of California. On February 9, 1987, the Bureau entered into an agreement with the City of Newport Beach (the "City"), as modified May 17, 1989, to promote tourism in and serve the needs of visitors to the City. Under the terms of the agreement, the Bureau is a sales and marketing organization responsible for bringing meetings, conferences, group business and visitors to the City and thereby enhancing and developing the economy of the Newport Beach community. The City collects a 1% service fee applied to transient rental of lodging rooms. For the services provided by the Bureau, the City pays this service fee, less 1 % to defray administrative costs, to the Bureau, under an agreement which expires May 22, 1992. The Bureau also collects membership dues from local hotels, restaurants, and merchants. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenues - Service fee revenues are earned when the tax is received by the City from the operators of hotels and transient rentals. Membership dues are earned in the year in which dues are paid. Furniture and Equipment - Furniture and equipment are recorded at cost with depreciation provided using the straight-line method over the estimated useful lives of the assets which range from five to seven years. Repairs and maintenance to furniture and equipment are expensed as incurred. When furniture and equipment are retired or otherwise disposed of, the related costs and accumulated depreciation are eliminated from the accounts and any gain or loss on such disposition is reflected in income. Cash and Cash Equivalents - For purposes of the statement of cash flows, the Bureau considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. Income Tax Status - The Bureau qualifies as a tax-exempt organization under Section 501(c)(6) of the Internal Revenue Code and, therefore, has no provision for federal or state income taxes. NOTE 3 - FURNITURE AND EQUIPMENT Furniture and equipment consist of the following: Furniture and equipment Less accumulated depreciation NOTE 4 - COM UTMENTS $ 35,268 (5.511) $ 29.757 Pursuant to an agreement dated February 9, 1987, as modified May 17, 1989, between the Bureau and the City of Newport Beach, the Bureau is required to remit $25,000 semiannually to the City of Newport Beach. These funds are to be used by the City for the purpose of providing transportation improvements that directly benefit visitors. These expenses are recognized ratably over the year. The Bureau entered into an operating lease for its new headquarters in May of 1990. This lease replaces the Bureau's previous leases. Rent expense for the year was $19,088. The new headquarters space was leased from a member of the Bureau's board of directors, a related party, for an initial monthly rent of $3,685 per month. No rent for this lease was recorded for the year ended June 30, 1990 since the Bureau did not occupy this space until July of 1990. Current assets include $3,685 in prepaid rent paid to this related party, while deposits include $3,685 paid to this related party. Minimum future annual rental commitments on this related party lease are as follows: Year ended June 30,, Amount 1991 $ 41,000 1992 44,000 1993 50,000 1994 53,000 1995 56,000 Thereafter 5,000 NOTE 5 - SUBSEQUENT EVENTS On August 8, 1990, the Bureau obtained a revolving line of credit of $50,150 payable to a bank with interest at the lender's prime rate plus 1 %. This line of credit is due on demand or August 8, 1991. The Bureau also obtained a 5 year fully amortizing note payable to a bank on August 8, 1990 for a total principal of $47,150, which was used to purchase various office furniture and equipment. This note requires monthly payments of $1,029 including principal and interest at the lender's prime rate plus I %. The furniture and equipment is pledged as collateral for this note payable. NOTE 6 - PRIOR PERIOD ADJUSTMENT The Bureau has decreased its previous year's revenues by $50,599 in order to properly state revenue in accordance with the Bureau's revenue recognition policy. The beginning fund balance has been restated to reflect this decrease. NOTE 7 - CASK PAID FOR INTEREST EXPENSE AND INCOME TAXES 1990. No cash was paid for interest expense or income tax during the year ended June 30,