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HomeMy WebLinkAbout06-27-1994 Item #03Oyy' C- z&/.39 Niwpw BIAN THE CO[ORM[OASi April 8, 1994 Mr. Kevin Murphy City Manager CITY OF NEWPORT BEACH 3300 Newport Blvd. Newport Beach, CA 92663 Dear Kevin, Agenda Item No. 3 CITY GF JON Enclosed you will find our purposed budget for fiscal year 1994-1995. This is in accordance with our contractual agreement. On behalf of the Newport Beach Conference and Visitors Bureau, I have included comments pertaining to the budget and the outlook for the coming year. You will also find our marketing plan of work. Please contact me if you have any questions. Thank you for your support of our Bureau and the industry it serves. Sincerely, Margo Repta, Chairman Board of Directors MR/ss 1 NEWPORT BEACH CONFERENCE & VISITORS BUREAU 366 San Miguel, Suite 200, Newport Beach, California 92660, (714) 644-1190 1 -800 -94 -COAST FAX: (714) 644-1180 NEWPORT BEACH CONFERENCE AND VISITORS BUREAU Newport Beach, California Proposed Interim Budget FY 1994-1995 Introduction Annually, the Newport Beach Conference and Visitors Bureau submits its proposed budget for the next fiscal year. We have taken a conservative approach in anticipating no increase in the proposed transient occupancy tax that is provided by the City. This is our primary source of funding for our marketing efforts. Our prudent budgeting reflects careful planning to maximize this revenue. We remain optimistic that our hotels will show an increase in occupancy in the next year. The challenge for the hotels will be to enjoy growth in the average daily rate, along with growth in occupancy. Everyone is working in partnership to overcome our state's recession and the unfortunate press coverage California has received in the past year. This has caused some decline in the leisure, corporate and group markets. As we see an increase in hotel occupancy, more revenue will be generated in our restaurants, retail and attraction services. This will contribute to the bottomline of our City's revenues. The Newport Beach Conference and Visitors Bureau continues to be a strong sales and marketing organization. We continue to grow our membership and meet the needs of our members. We continue to meet the needs of individual travel planners, conference planners, international travelers, travel writers, and the media. Our resources are limited, but our dedication to the mission of the Bureau is vital. Our budget has been prepared to support a very specific sales and marketing plan of work. Through these efforts we will continue to increase the awareness of Newport Beach as an outstanding destination and attract visitors to our community. Margo Repta, Chairman Board of Directors NEWPORT BEACH CONFERENCE AND VISITORS BUREAU PROPOSED BUDGET FY1994-1995 Line Item/Chart of Account Projected Actual 6/30/94 Revised Budget 93-94 Proposed Budget 94-95 REVENUE Hotel TOT $625,000 $625,000 $625,000 Memberships 30,000 35,000 39,000 Coop/Adv 0 500 5,500 Merchandise 100 500 500 Event Hosting 0 600 600 Publications 100 500 500 Miscellaneous TOTAL (REV) 655,200 662,100 671,100 EXPENSES SALARY EXP X Salaries/505 274,000 274,000 285,000 TOTAL SALARY 274,000 274,000 285,000 PERSON',NIEL EXP Payroll Taxes/506 24,709 24,709 25,650 Benefits/508 39,000 53,600 46,000 Workers Comp/510 0 3,000 3,000 TOTAL PERSON. 63,709 81,309 74,650 OPERATIONS Rent/522 55,000 55,000 56,000 Legal/Account./526 18,000 15,000 12,000 Bank Charges/527 300 300 300 Computr Consult/528 5,000 4000 2,000 Repair/Maint./530 120 400 300 Maint Contracts/532 4,200 1,800 3,300 OPER/continued Office Supplies/534 8,000 15,000 8,000 Insurance/536 2,500 4,000 4,000 Mtg/Event/LocaU538 6,000 7,500 7,500 Equipment/540 1,000 6,000 0 Equip. Lease/542 7,000 6,540 9,000 Depreciation 11,900 11,900 13,000 Outside Service/554 1,200 1,200 1,200 Miscellaneous/IMPI 6,000 Taxes/Licenses 600 600 500 TOTAL (OPS) 126,820 129,240 117,100 MARKETING Travel/Entert./602 12,000 20,000 16,000 Trade Shows/604 10,000 18,000 21,000 Prod/Publ/606 14,000 8,000 5,000 Printing/Publ/608 23,000 17,000 25,500 Advertize-Mtgs/610 5,000 5,000 5,000 Advert-Tourism/612 4,000 1,000 9,000 Fam/Site Tours/614 4,000 5,000 7,000 Newsletter/616 5,000 5,000 6,000 Compt Database/618 3,500 3,500 2,000 Telemarketing/620 14,000 14,000 13,000 Post/Dir. Mail/622 23,000 23,000 23,000 Media/Photo/PR/624 38,000 30,000 36,500 Misc Service/625 Prof Memb/Subs/628 9,000 9,000 7,244 ResearcIV630 1,000 1,000 0 Educ/Training/631 3,000 3,000 8,500 Gen Marketing/632 4,000 6,000 0 Spec Promotions/634 6,000 8,000 5,000 TOTAL MKT 178,500 176,500 189,744 +6.3% TOTAL EXPENSE 643,029 ------------------------------------------------------- NET rNi C(LOSS) 12,171 ------------------------------------------------------- 661,049 ---------------------- 1,051 666,494 +3.7% •1• 5 SALES AND MARKETING 1994-95 PLAN OF WORK MISSION STATEMENT The mission of the bureau is to gain and retain guests, through the solicitation of conferences and other related group business, and to engage in visitor promotions, which generate overnight stays for the community, promoting lodging, food and beverage, attractions, and other visitor related business, thereby enhancing and developing the economic assets of the city. CONFERENCE MARKETING Target Markets - Association and Corporate with special emphasis on California Goals: * To generate 190 leads * To confirm 76 conference bookings Activities: 1. To continue database marketing, identify and solicit new prospects and trace and maintain existing accounts. 2. To attend the following California trade shows promoting Newport Beach as a meetings destination: a. Northern California Society of Association Executives November/San Francisco b. Sacramento Society of Association Executives December/Sacramento c. Northern California Chapter of Meeting Planners Int'1. January/San Francisco d. Southern California Society of Association Executives May/Local area e. Meetings West December/San Francisco Page 2 1994-95 Plan of Work 3. To attend the following Midwest trade shows promoting Newport Beach as a meetings destination: a. Chicago Society of Association Executives December/Chicago b. Int'l. Assn. of Convention & Visitors Bureaus Destination Showcase February/Chicago c. Meeting Planners International June/Minneapolis 4. To attend the following eastern trade shows promoting Newport Beach as a meetings destination: a. Affordable Meetings September/Washington DC b. Int'l Assn. of Convention & Visitors Bureaus Destination Showcase February/Washington DC 5. To organize and conduct one sales blitz in which we contact a large number of meeting planners in a concentrated area a. Los Angeles/Date to be determined 6. To organize and conduct two Familiarization tours a. Association/Origin to be determined b. Corporate/San Jose 7. To continue promoting all members of the bureau a. Via conference servicing b. Familiarization tours I Page 3 1994-95 Plan of Work 8. To offer cooperative marketing programs with the hotels. a. Advertising (newspaper, industry magazines, radio) b. Trade Show participation 9. To continue to provide and expand conference servicing support to groups who have selected Newport Beach as a meeting destination. 10. Update and reprint Destination Planner 11. Develop a corporate guide for meeting planners 12. Continue to develop and replace promotional items to support bureau marketing plan 13. Maintain professional affiliations 14. Continue to produce pre -mailers for trade shows 15. Continue to coordinate and assist meeting planners and decision makers on sight inspections TOURISM MARKETING Goals: * To host one media Fam tour * To develop exposure and awareness for Newport Beach as a visitor destination I Page 4 1994-95 Plan of Work Activities: 1. With the assistance of a public relations consultant a. provide information for original articles on Newport Beach b. provide information for press releases c. host media and travel writers Fam tours as needed d. provide and maintain a photo (slide) library for media and meeting attendance promotion 2. Respond to all media inquiries with requested information 3. Update Newport Beach information in various travel directories and guides 4. Continue distribution of Newport Beach information to hotel concierges 5. Explore cooperative placements of small ads that encourage visitors to to call the Bureau's 800 number for visitor information 6. To continue co-op advertising and promotion with southern California cities 7. To continue to provide visitor information services a. respond to all inquiries for visitor information b. continue charting where information requests originate 8. Explore various avenues of the group tour market 9. Update and reprint Visitor Guide EDUCATIONAL SEMINARS International Association of Convention & Visitors Bureaus - July Western Association of Convention & Visitors Bureaus - November Professional Convention Management Association - January