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HomeMy WebLinkAboutF-9a - Conference and Visitor's Bureau Annual ReportCITY COUNCIL Agenda Item No. F' A CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER September 23, 1991 TO: MAYOR AND CITY COUNCIL FROM: City Manager BY THE CITY COUNCIL CITY OF NEWPORT BEACH SUBJECT: CONFERENCE & VISITOR'S BUREAU ANNUAL REPORT C - 2e .�Y The amended agreement between the City and the Newport Beach Conference & Visitor's Bureau requires among other things an annual report. This report shall: 1. Evaluate the services and programs offered by Bureau during the preceding fiscal year. 2. State the extent to which Bureau has achieved its goals and objectives, with emphasis on increases or decreases in occupancy rates during the preceding fiscal year as compared with prior years and the extent to which any increases in room occupancy rates can be attributed to programs or activities of Bureau. 3. State the amount and nature of expenditures during the preceding fiscal year. Finally, August 31st of each information that i agencies. This is information, but ca evening agenda or further explanation. RLW:kf Attachment the report shall be submitted to the City on or about year. Attached is a copy of said report and contains s responsive to the agreement between the two being placed on the consent calendar for Council n be explained in greater detail either during the at a future Study Session if the Council desires 1ROBERT L. WYNN Of) r: LC f. � r . _�. . August 30, 1991 Members, City Council CITY OF NEWPORT BEACH 3300 Newport Blvd. Newport Beach, CA. 92659-1768 Dear Council Members: On behalf of the Newport Beach Conference and Visitors Bureau, it is our pleasure to forward to you our Annual Report for Fiscal Year 1990-1991. The past year has been challenging particularly with a softening economy and the Middle East Crisis; not unlike other areas of our State or the Country, Newport Beach has felt the impact of smaller groups meetings, fewer corporate travelers on the road and a significant decrease in leisure travelers. However, we remain optimistic about both the year and the future that is in store for Newport Beach. Our professional staff and the committed Board volunteers have provided our Bureau with the leadership it has needed during these economically difficult times, and clearly the Bureau is needed today more than ever to market our community. It has been said that, "The people who get on in this world are the people who get up and look for the circumstances they want, and if they can't find them, make them." (George Bernard Shaw) So it is with the Bureau; we have made the circumstances, over these past two years by building a professional organization and program that merits our attention and reflects confidence. We are pleased to provide you with this information and welcome your comments or questions. We also wish to thank you for your continued interest in our programs which serve to build a stronger Newport Beach. Sin lerely, Tom Limberg,ai man Board of Directors; General Manager, Newport Beach Marriott Hotel and Tennis Club 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 Letter of Transmittal Table of Contents Board of Directors PROGRAM REPORTS TABLE OF CONTENTS ..................................................................................................1 Mission Statement . . ............................................................ 2 ..................................................................3 ....................................................................................5 Salesand Marketing............................................................................................6 MeetingsMarket.......................................................................................6 LeisureMarket..........................................................................................10 NationalRecognition................................................................................12 MembershipMarketing........................................................................................13 Community Relations..........................................................................................14 Organizational Management...............................................................................15 Financial Management............................................................................15 PersonnelManagement...........................................................................i6 Volunteer Management...........................................................................17 Summary................................................................................................................18 APPENDIX (1) Composite Hotel Occupancy Rates/Average Daily. Rates (2) Budget Summary/Financial Statements FY90/91 (3) Convention Calendar (4) Monthly Convention Bookings by the Bureau (5) Ad Slick (6) Media Stories (samples) (7) Convention Services Guide (8) Fact Sheet (9) Visitor Information (10) Things to See and Do In Newport Beach (11) Member Messages (sample) (12) Seminar Announcement (13) Newsletter Summer 1990 (sample) NEWPORT BEACH CONFERENCE AND VISITORS BUREAU BOARD OF DIRECTORS Fiscal Year 1990-1991 The following served as members of the Board of Directors during the past fiscal year. Chairman Tom Limberg, General Manager, Newport Beach Marriott Hotel Vice Chairman Jim Dale, Owner, Villa Nova Restaurant Secretary Jackie Manion, Owner, Newport Travel Concepts Chief Financial Officer Hal Schultz, Managing Partner, Coopers & Lybrand Board Members Herrick Hanson, Owner, Little -Inn -On -The -Bay Brion Amendt, General Manager, Newport Channel Inn Richard Luehrs, President, Newport Harbor Area Chamber of Commerce Louise Wright, Sales Representative, American Airlines Barbara Sloate, Owner, Whirl -A -Round Tours Klaus Goedecke, District Manager, AAA of Southern California Bob Black, President, Catalina Passenger Service Bill Hamilton, Owner, The Cannery Restaurant Jackie Heather, Former Mayor, City of Newport Beach Mike Stanko, General Manager, Balboa Bay Club Tom Gurtner, General Manager, Four Seasons Hotel Pat Engfer, General Manager, Hyatt Newporter Hotel Serge Denis, General Manager, Le Meridien Hotel Margo Repta, General Manager, Marriott Suites Newport Beach Jack Webber, General Manager, Sheraton Newport Beach PROGRAM REPORTS NEWPORT BEACH CONFERENCE AND VISITORS BUREAU MISSION STATEMENT The mission of the Newport Beach Conference and Visitors Bureau shall be to gain and retain clients, 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 businesses and services, thereby enhancing and developing the economic fabric of our community. This Bureau's mission shall be accomplished through the following general program objectives: 1. To develop a comprehensive sales and marketing program that utilizes a variety of strategies to reach carefully identified and selected target market segments; 2. To develop a program that integrates the diverse and unique elements of the Newport Beach area into a comprehensive and consistent image campaign; 3. To provide an array of member services to meeting and tour planners that supplement and support their interests in the Newport Beach area and draws on the resources of the Bureau's membership and the community; 4. And to provide leadership to the industry and to the community on behalf of the hospitality and travel industries, urging coordinated and cooperative programs, keeping community leaders informed of trends and programs, generating interest and participation among the Bureau's membership. NOTE: The Bureau produced in January 1990 a comprehensive Marketing Plan to cover the period 1989-1992. On March 14, 1991, a revised Marketing Plan for the years 1991-1993 was developed and approved by the Bureau's Board of Directors. In that plan, specific marketing goals, programs and strategies are outlined including those programs which are subject to availability of resources. PROGRAM REPORT: SALES AND MARKETING The Newport Beach Conference and Visitors Bureau is primarily a sales and marketing organization, representing the destination of Newport Beach, California. Sales and Marketing activities are divided, for this Bureau, into the meetings and leisure markets. Sales and Marketing: Meeting Markets Overall Program. The activities in this arena are focused on group business that might come to Newport Beach for its meeting (regardless of size). Staffing of the Bureau has been divided among the many group markets to include medical meetings, incentive groups, insurance meetings, national/international associations, state and local associations, the SMERF markets (social, military, educational, religious and fraternal) and corporate meetings. During the period February 1990 -December 1990, the programs for the sales and marketing area were redeveloped including the addition of staff (from one sales person to a team of four), installation of an automated sales system and the addition of a database retrieval/research system. Each of these programs were designed to provide support to the sales team, the results of which are reflected in this year's performance data. Program Results. On the next few pages, sales and marketing performance for the past fiscal are compared to the previous fiscal year. Though the generation of Sales Leads was off - 3.2%, comparing this fiscal to the previous fiscal, the quali of the sales leads increased dramatically (as was requested by the Marketing Committee), reflecting a 34% increase in delegates (FY89/90 to 90/91), a 59% increase in room -nights and a 313% increase in the potential economic impact of those business prospects (see page 7). Convention Bookings, on the other hand, increased 45% FY89/90 to FY90/91, with an 80% increase in delegates, a 163% increase in room -nights and a 107% increase in the economic impact such business would have on Newport Beach (see page 8). Baseline data continues to be developed for measuring group sales performance. Bureau sales and marketing activities in the meetings market suggests that Newport Beach is well received among meeting planners and association executives. Softening of the economy beginning in late 1990 was evident in timelines for planning of meetings. Corporate meetings appear to be last minute decisions with 30-45 days notice; association meetings tend to maintain their planning perspective though timelines appeared shorter particularly for local, state and regional associations. The size of meetings also decreased during the latter part of 1990 and the first part of 1991. 56 site inspections were held during fiscal 1990-1991(86% increase over FY89/90) plus two major familiarization tours during Spring 1991; two additional fam tours are planned for the first part of FY91/92. U) Q W J Z O F— Z W Z O V 0 0 0 0 0 0' 0 0 o N 0 cO .o 0 o ' � 0 _O O O O O- O 10 a M N 0 a 0 o � 07 O Z N 0 a E 0 0 0 0 0 0 0' 0 0 0 0 0 0 0 ' 0 0 O O O- O 10 a M N a 0 c 07 Z a E 0 0 0 0 O N N J CL O c O U 0 0 N v ca m J O ,r U cC CL E U O c O U LL W cc L a 01 E O 0 cc W- 0 0 �4 a6 to W 0 0 0 0 0 0' 0 0 0 0 0 O O r c 07 Z E 0 0 Z O YD 0) OD to O to a a 0 CD 00 0 0 0 0 0 0, O O O O O O O 0 N 0 C00 00 0 N a m m 01 m m O O O ca 0) O O v� c Y O O m r - O cc a E V E O c O V LU 0 0 0 0 0 0 0, 0 0 0 0 0 0 O b O b O to O N N L O1 2 E 0 0 z LU cr O � CO W T T N T N O c z�� Q z O 0)0) ,— O H Cr) co 0) z LU cr O O � CO O F- T � � O c O Q 1 H Cr) LO 0 .. .......... ........... Ld N Ef3 1 �: � ` r fl LO:. .. ;tn O O � O T T � � O c T O M LO N 0 Eight (8) trade shows were also attended during fiscal 1990-1991, to profile Newport Beach and to make contact with potential clients. Those trade shows included: Meeting Planners International (Annual Meeting); California Federation of Association Executives; Incentive Travel and Meeting Exposition; San Francisco Society of Association Executives; Sacramento Society of Association Executives; Professional Convention Management Association; Destination Showcase; and the Metropolitan Los Angeles Association Executives. Industry -Wide Indicators. Based on data provided by Newport Beach hotels, it was estimated that more than 3,014 meetings were held in the community during calendar year 1990, involving nearly 150,000 delegates. Though this was a 13% increase in the number of meetings over calendar year 1989, it represented a 26% decrease in delegates. The average overall size of groups meeting during 1990 was 52 delegates, down 32% from the average of 76 during calendar year 1989. Such general indicators affirm the softening of the economy during 1990 (see appendix for composite occupancy/rate information). Annually, the Conference and Visitors Bureau, in cooperation with the area hotels, prepares a Convention Calendar which lists the major groups meeting in Newport Beach; listings of the Bureau's bookings per month are enclosed (see appendix). In evaluating the effectiveness of the Bureau and its sales and marketing activities, based strictly on the group sales efforts, for every transient occupancy dollar provided to the Bureau during fiscal 1990-1991, the Bureau's groups sales efforts generated a potential $47 dollar return (see page 9). This means the City of Newport Beach would also receive a potential $3.76 (8% of $47) on each new dollar generated. This ratio (sales efforts divided by transient occupany tax received by Bureau) increased from 12:1 in fiscal year 1989-1990, an indication of the positive contribution a qualified sales team with a program focus can make for the hospitality industry in Newport Beach. Sales and Marketing: Leisure Markets Leisure/visitor marketing usually involves several potential audiences including group tour operators, international operators, travel writers, travel agents and leisure travelers. Marketing emphasis for the Bureau this past fiscal year was primarily in the meetings market; however, the Bureau did undertake to initiate some relationships with domestic and international group tour operators, travel writers and travel agents while responding to inquiries from leisure visitors. Such programs included: * Responded to 2,523 visitor inquiries plus handling of numerous other telephone calls about other things to see and do in the Newport Beach area (also processed 2700 inquiries from a Spring 1990 ad in Travel and Leisure magazine). * Participated in a cooperative advertising program with Disneyland (see appendix for sample ad); ad appeared in their vacation fulfillment brochure (70,000 copies) which was distributed to those who responded to their Spring 91 advertising campaign. * Visited with the Japan Travel Bureau regarding group visits to Newport Beach; and hosted, in cooperation with The Cannery Restaurant, 15 members of the JTB Study Tour on a luncheon/harbor cruise. Worked with the Japan Travel Bureau to assist them with identifying sites for inclusion on tours, including making arrangement for JTB to work with Hoag Hospital on a forthcoming medical tour. * Hosted Go Voyages from Paris, France, who wished to tour rental units on the Peninsula for possible inclusion in their family vacation package brochure for the 92/93 season, as well as Riviera Rover Corporation regarding tour packages with our Sister City Antibes, France. * Participated in an attractions map of Southern California sponsored through Destination Southern California (70,000 copies) which was distributed to travel agents and tour operators. 42 travel agents made inquiries about Newport Beach as a vacation venue. * Worked with 15 other domestic and international tour operators to provide information on Newport Beach including: Valen Transportation (Anaheim), Golden Gate Tours (Concord, CA.), National Association of Senior Travel Planners (MA.), Gadabout Tours (Palm Springs, CA.), Tokyo Tourist Corporation (Japan), Group Travel Directors (Minneapolis, MN.), Crossroads Travel (Joplin, MO.), Around and About Tours (El Paso, TX.), American Ring Travel (Valencia, CA.), Centennial Tours (Fort Collins, CO.), Prime Tours (Japan), Jetset Tours (El Segunda, CA. office), Nippon Travel Agency (Los Angeles office), California Tour Consultants (San Francisco, CA.), and Global Support Services/Travel (Lanham, MD.). * Hosted a familiarization tour for travel writers during the 1990 Christmas Light Parade; three freelance travel writers accepted the invitation and participated in the tour, of which two produced articles on Newport Beach subsequent to their tour (see enclosures). Media coverage and contacts included: Desert Sun (Palm Springs), New York Times, Stockton Record, Rancho Magazine, Successful Meetings, Corporate & Incentive travel, Look America (Japanese), Come to America (Japanese), Reisen Holiday (German), Valley Magazine, Travelage-West, Orange County Business Journal, Meetings and Convention Magazine, Travel Host Magazine, and Meeting News. * Brought into the Bureau, from InterCommunicationsInc of Newport Beach (the Bureau's advertising agency of record), the media relations program including updating of the Media Kit (see "Fact Sheet" in appendix) produced in 1990, securing new slides for distribution and computerization of updated media lists and media contacts. * Developed copy for a "Visitors Guide" (see appendix) on Bureau members and Newport Beach; developed a list of "Things to See and Do in Newport Beach" (see appendix) for brochure development; and designed a series of mini -brochures that will assist visitors, the initial brochure titled "Yacht Charters". Subsequent brochures to be developed during fiscal 1991/92 include 'Destination Management/Event Planners" and others. Bureau Receives National Reco nition During the past fiscal year, the Bureau received two national awards for its image and marketing campaign. In July 1990, the Bureau received an Idea Fair Award in Tourism from the International Association of Convention and Visitor Bureaus (IACVB); this award of excellence recognized the advertizing and media programs developed by the Bureau targeting leisure travelers. The IACVB represents 350 bureaus from 25 countries. The second award was received in December 1990. The American Society of Association Executives (ASAE) presented the Bureau with a Gold Circle Award, for outstanding image and logo development. ASAE is the largest association for association executives and has more than 20,000 members. PROGRAM REPORT: MEMBERSHIP MARKETING Convention bureaus are by nature membership associations. Though bureaus nationally receive a majority of their funding through transient hotel occupancy revenues, bureaus do have a variety of other potential financial revenue sources, membership investments being one of the most critical. Bureau members are "partners" in the marketing of the destination; they are a fundamental part of the image that is developed and projected which draws attention to the destination as a viable meetings or leisure venue. Without their participation, both through actual membership investments (dues) as well as inkind support for programs, the effectiveness of the Bureau would be greatly reduced. During fiscal year 1990/91, the Bureau saw a net increase of 34 new members ending the fiscal year with 178 members; this represents a 19% increase in memberships. The Bureau lost 21 members during the fiscal year primarily victims of the softened economy; however, even under such circumstances, it was affirming to see new members interested in joining the Bureau's marketing partnership. Membership activities included: * Publication of the Bureau's third newsletter "NB Style" in Summer 1990. * Hosting of quarterly membership receptions; * Inauguration of a monthly newsletter called "Member Messages" to share with the membership program updates as well as news about Bureau members (see appendix). * Quarterly new member breakfasts (to share with the membership, programs the Bureau is engaged in; and to introduce the members to the Bureau's volunteer leadership). * Monthly distribution, to the membership, of a list of convention bookings. As a result of the departure of the Bureau's Membership Manager (July 1991), the membership program will be involving the Bureau's Board of Directors in calling on memberships up for renewal and/or delinquent. Hiring of a staff replacement is anticipated for Fall 1991. The membership program will also be automated during the transition. The Bureau launched an educational seminar series beginning in May 17 (Team Building for Tough Times) and August 15 (Working with Japanese Travel Professionals); additional seminars are planned for the current fiscal (see appendix for seminar announcements). PROGRAM REPORT: COMMUNICATIONS MARKETING Communications marketing is an essential part of the Bureau's total marketing program. It is the dynamic link that keeps a variety of audiences, internal and external, informed as to the programs of the association and the trends of the industry. Unless information is shared, it is not understood. The more that is communicated and shared, the greater the potential for understanding and appreciating the Bureau's mission and programs. The communications efforts have been focused on members, the community, elected officials, and the Board of Directors. Some of the communications techniques developed during this past year are mentioned under Leisure Marketing, Membership Marketing and Organizational Management. Among some of the other communication and community activities were the following: * Serving on the Board of Directors of Leadership Tomorrow. * Serving on the Board of Directors of Coastal Motion/A Transportation Management Association. * Serving on the Steering Committee for Seafest 91. * Serving on the Advisory Council for Irrelevant Week 91. * Meet periodically with Members of the City Council. * Sponsorships for Spirit Run 91 and the Harbor Heritage Run. * Induction into The Commodores Club, Newport Harbor Area Chamber of Commerce. Each of these, and many other related activities, affirm the credibility and value of the Newport Beach Conference and Visitors Bureau not only as a marketing organization but also as a partner in the development of our community. Serving this year on the Community Relations Committee were: Jim Dale, Villa Nova (Chair); Jackie Heather, Former Mayor; Barbara Sloate, Whirl -A -Round Tours; Vanessa Hannibal, John Dominis; and Bill Hamilton, The Cannery Restaurant. PROGRAM REPORT: ORGANIZATIONAL MANAGEMENT Convention and visitor bureaus are primarily marketing organizations whose mission it is to develop an image for a destination. 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 -June 1991, much has been accomplished in developing for the Newport Beach Conference and Visitors Bureau reliable and efficient management systems. Such items included: (1) composition of the Bureau's first 'Personnel Manual"; (2) completion of the Bureau's first "Organizational Manual"; (3) completion of a revised "Marketing Plan 1991-1993"; (4) an update to the Bureau's Bylaws; (5) an evaluation of the Bureau's membership program and investment (dues) structure; (6) the clarification of financial management systems including bringing inhouse certain financial operations; (7) and the bringing onto the Board of Directors, a Chief Financial Officer from a major certified public accounting firm in Newport Beach. Financial Management Financial management of the Bureau is under the Board supervision of Hal Schultz, Managing Partner of Coopers & Lybrand, serving as Chief Financial Officer for the Bureau; Thomas G. Clark, CPA, serving as the Bureau's accountant; and Karen Pearse, Director of Finance and Administration for the Bureau. All documents are prepared by the Bureau, forwarded to the Bureau's accountant for preparation of monthly financial statements and reviewed by the Chief Financial Officer, Executive Committee and the Board of Directors. Fiscal year 1990-1991 began with a lot of hopes and expectations as to what might be expected in revenues for the Bureau. However, six months into the fiscal year, it became apparent that revenues would not meet expectations. With the assistance of the hotels, projection of TOT revenues were obtained upon which a budget revision could be based. Chief Financial Officer Hal Schultz, Board Chairman Tom Limberg and Bureau President Richard Gartrell modified the annual budget making cuts in expense line items anticipating a loss of revenues of about $112,000 (or a 14% reduction). Programs were committed for the fiscal year thus a reduction of the fund balance of $30,000 was anticipated. Actual containment of expenses exceeded that anticipated reduction in the fund balance. However, the loss of revenues continued downward equalling $191,375, 23% reduction from the original FY90/91 budget. As a result, the loss to our fund balance was $110,420. In cooperation with the City of Newport Beach, the Bureau also requested that a payment of the transient occupancy tax revenues be adjusted from a quarterly format to a monthly format, based on actual revenues received. Such arrangements were made in an effort to assist the Bureau in stabilizing its financial resources on a month-to-month basis. The audit for fiscal year 1989-90 was completed in March 1991 by Lesley, Thomas, Schwarz and Postma, CPA, and provided a series of procedural recommendations in a letter to the City Manager for the City of Newport Beach dated April 8, 1991. These recommendations dealt with the collection, tracking and distribution of the transient occupancy revenues. Upon receipt of the FY90/91 year-end financial statements, it was decided at the August 1991 meeting of the Bureau's Board of Directors, to reduce the budget submitted to City Council in April 1991 by $40,000 (a 5.6% reduction in expected revenues and expenditures). This is predicated on expectations that the forthcoming fiscal year 1991-1992 will have a modest increase in transient occupancy revenues as the economy and travel begins to rebound. In the appendix, you will find copies of the year-end report of assets and liabilities/fund balance, along with a statement of revenue and expenses based on the operational fund areas of the Bureau. The Bureau's contract with the City of Newport Beach restricts administrative services to 30%; the Bureau's fund area for administration and finance did not exceed $21.8% during fiscal 1990/1991. An audit for FY1990/1991 was approved by the Bureau's Board of Directors and is being completed by Lesley, Thomas, Schwarz and Postma, Certified Public Accountants. This past fiscal year saw the Bureau move into new offices, automate the office with a local area network, and install one of the leading state-of-the-art sales systems to support the group sales activities of the Bureau. Personnel Mann eg ment During fiscal year 1990-1991, there were no additions to the Bureau Staff. However, the Membership Manager departed the first of the new fiscal year 1991/1992 to join the marketing staff of Fashion Island. Bureau staff for fiscal year 1990/91 included: Richard B. Gartrell, CAE, President/Chief Executive Officer Karen Pearse, Director of Finance and Administration Kathy Glassmyer, Membership Manager Barbara Stone, Director of Sales Martha Kleine, National Sales Manager Kathy Austgen, Corporate Sales Manager Heather Larson, Sales Assistant/Conference Services Manager The Bureau developed and implemented a performance appraisal system, the first in the history of the Bureau which will be refined during fiscal 1991-1992. In November 1990, Bureau President Richard Gartrell was honored by the Japanese Government (Tourism Bureau) and asked to be their main speaker on the topic of "marketing destinations" at their 5th Annual Convention Promotion Seminar in Niigata City. Volunteer Management Volunteers remain a major support structure for the Bureau and its many activities. Volunteers serve on the Bureau Board of Directors (see page 3), committees, and assist the Bureau with the hosting of site inspections and familiarization tours (see "Member Messages" in appendix for list of fam tour supporters). In January 1991, the Board of Directors held its annual retreat and invited George Kirkland, CAE and President of the Los Angeles Convention and Visitors Bureau, to serve as facilitator. The results of that retreat included a broader understanding of bureaus and bureau programs and suggestions for program considerations, including the following: * Develop a mailing list of key resources in the community who should receive, on a periodic basis, a communique from the Bureau President that shares the significance of the industry and the programs of the Bureau (in progress). * Develop a periodic briefing letter to the Bureau's Board of Directors that keeps them appraised of issues and events, particularly between Board meetings ('Board Briefs" has been developed and is periodically mailed to the Board). * Explore cooperative marketing opportunities with other area bureaus as it relates to international marketing, specifically sales missions. * Explore the division of costs among those who participate with the Bureau in an industry trade show (in progress). * Explore development of research studies that would assist in identifying target markets by quantifying statistical information about who it is that comes to Newport Beach (in progress). * Develop a working relationship with airlines and utilize trade -outs to obtain tickets for use with Bureau marketing programs (American Airlines and the Bureau have a working relationship; several other airlines have assisted with inbound fam tours). * Explore increasing the financial resources for the Bureau to make it more competitive as well as to assure its future (in progress). PROGRAM REPORT: SUMMARY Fiscal Year 1990-1991 was a year of many challenges; our economy began a servere downturn and the Middle East crisis consumed our attention for months. The hospitality and travel industry were not exempt from the impact of those activities; both corporate and leisure travel saw a significant decrease while groups postponed their meetings or held meetings with smaller numbers attending. As one writer put it, "We cannot direct the wind ... But we can adjust the sails." The Bureau accepted that challenge; recognizing that revenues would not be as strong as past years, the Bureau concentrated its sales and marketing efforts on the group market. The results are affirming as presented earlier in this report. The Bureau continues to be assertive with its various marketing activities and programs, within the limitations of its resources. As the Bureau looks forward to the coming year and subsequent years of marketing, there is excitement and high levels of expectations. It is felt that the economy will slowly rebound and with that, travel will begin to return. It is felt that the Bureau's image campaign will continue to establish a recognition for the area as a viable meetings and leisure venue among those selected markets with which the Bureau communicates. Maintaining, refining and expanding programs within the limits of the Bureau's resources, will be the agenda for the future. As stated in the revised 1991-1993 Marketing Plan, the Bureau has laid its foundation, has attained program focus and moves into the future, with its marketing partners, enthusiastically. Richard B. Gartrell, CAE President/Chief Executive Officer 8/91 APPENDIX NEWPORT BEACH CONFERENCE AND VISITORS BUREAU Average Occupancy The following information has been gathered from Newport Beach area hotels and placed in the following composite graph; individual confidentiality has been requested. Month 1987/88 1988/89 +/-0 1989/90 +/-% 1990/91 July 66.7 68 +2.9 75.1 +9.3 64 -11 August 74.7 76 +2.6 75 * -1.3 61 -14 September 59.3 64 +6.3 63.3 -1.6 64 +1 October 57.7 63 +9.5 62.5 -1.6 63 +1/2 November 57.9 62 +6.6 59 -5.1 55 -4 December 50.8 48 -5.8 52 +7.7 49 -3 January 61.7 N/A N/A 62 N/A 56 -6 February 72.9 72 -1.3 71 -1.4 66 -5 March 69.4 72.5 +4.3 67.3 -7.7 65 -2 April 64.6 67.3 +4.0 63.51 -5.9 68 +5 May 67.6 65.3 -3.5 61.72 -5.8 56.79 -4.93 June 64.8 58.5 -10.8 61.77 +4.3 62 +.23 OVERALL 64.0 65.2 +1.8 64.5 -1.1 60.8 -5.7* Participat m Votels incl.ubd: Ftur Seaxycczs, Hyatt Nzpartec, Le Mwidienr Ne- o Bad M3c=ottr Neapact Beach S-,eratrn and Marriott Suites (except in FY 87/88). *Net Lass 0xulative = 46.8 points over FY: 1990/91 NEWPORT BEACH CONFERENCE AND VISITORS BUREAU Average Daily Rate The following information has been gathered from Newport Beach area hotels and placed in the following composite graph; individual confidentiality has been requested. Month 1987/88 1988/89 +/-0 1989/90 1990/91 +/-$ July 92.90 93.77 +.9 89.29 -5.02 100.72 +11.43 August 92.13 94.43 +2.4 99.39 +5.0 100.50 +1.11 September 93.92 92.07 -2.0 99.02 +7.01 98.96 -.06 October 92.25 94.45 +2.3 100.68 +6.2 100.41 -.27 November 92.12 93.80 +1.8 98.75 +5.01 99.26 +.51 December 84.51 87.88 +3.8 95.82 +8.3 93.33 -2.49 January 98.42 N/A N/A 99.11 N/A 96.92 -2.19 February 94.95 97.40 +2.5 100.95 +3.5 102.77 +1.82 March 94.10 97.69 +3.7 99.54 +1.86 101.83 +2.29 April 95.06 97.42 +2.4 100.60 +3.16 98.95 -1.65 May - 95.61 96.04 +4.05 101.19 +5.1 97.97 -3.72 June 94.72 97.13 +2.5 100.15 +3.02 96.83 -3.32 OVERALL 93.39 94.73 +1.4 98.71 +4.03 99.00 +.3 Participating hxt - included: Four %sacs, Hyatt Newp er, Le Meridien, Newport Beach M3=ott, NaAmrt Baach Sheraton and the Marriott Suites (except in EY 87/88). NENATORT BEACH CONFERENCE AND VISITORS BUREAU REVENUE Hotel Service Fee Membership Invest. Coop Ad/Promo. Merchand.Sales Service Fees Event Hosting Misc/Other Inc. Publicatn.Sales TOTAL REVENUE EXPENSES Salary Expenses Staff Expenses Operations Marketing Comm.Invest. Initial Budget Summary FY: 1991 - 1992 Initial FY90-91 711,500.00 50,000.00 50,000.00 0.00 0.00 1,000.00 1,000.00 2,000.00 Revised FY90-91 662,000.00 35,000.00 35,000.00 0.00 0.00 0.00 500.00 1,000.00 Actual FY90-91 567,705.00 45,134.00 500.00 464.00 0.00 10,102.00 139.00 581.00 815,500.00 703,500.00 624,125.00 285,650.00 293,600.00 268,824.00 57,916.00 50,700.00 47,674.00 129,705.00 114,490.00 123,462.00 234,689.00 228,600.00 237,072.00 70,000.00 56,000.00 55,126.00 Initial FY91-92 665,000.00 41,000.00 7,000.00 2,000.00 0.00 2,000.00 1,000.00 1,000.00 719,000.00 284,999.00 77,108.00 99,722.00 190,000.00 56,000.00 Revised FY91-92 625,000.00 41,000.00 7,000.00 2,000.00 0.00 2,000.00 1,000.00 1,000.00 679,000.00 276,937.00 61,345.00 111,832.00 172,418.00 56,000.00 TOTAL 777,960.00 743,390.00 732,158.00 707,829.00 678.532.00 EXPENSES - Newport Beach Conference & Visitors Bureau Financial Statements June 30, 1991 THOMAS G. CLARK & ASSOCIATES Certified Public Accountants 2361 Campus Drive, Suite 214 Irvine, California 92715-1424 (714) 252-9062 July 16, 1991 NEWPORT BEACH CONFERENCE AND VISITORS BUREAU We have compiled the accompanying statement of assets and liabilities -modified cash basis of Newport Beach Conference and Visitors Bureau as of June 30, 1991, and the related statement of revenue and expense -modified cash basis for the year then ended, in accordance with standards established by the American Institute of Certified Public Accountants. The financial statements have been prepared on the modified cash basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles. A compilation is limited to presenting in the form of financial statements information that is the representation of management. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or any other form of assurance on them. Management has elected to omit substantially all of the disclosures required by generally accepted accounting principles. If the omitted disclosures were included in the financial statements, they might influence the user's conclusions about the Company's financial position and results of operations. Accordingly, these financial statements are not designed for those who are not informed about such matters. 'J�► A. Certified Public Accountants Newport Beach Conference & Visitors Bureau Statement of Assets and Liabilities - Modified Cash Basis June 30, 1991 CURRENT ASSETS Cash -Bank of N.P.-Checking Cash -Bank of N.P.-Savings Cash -Bank of N.P.-Ultra Petty Cash TOTAL CURRENT ASSETS FURNITURE AND EQUIPMENT Computer Equipment Office Furniture & Equip Less: Accum Depreciation OTHER ASSETS Deposits ASSETS $27,047.40 35,267.11 ------------ 62,314.51 (16,403.02) ------------ 3,685.00 ------------ See Accompanying Compilation Report $916.36 10,849.85 44,824.67 200.00 56,790.88 45,911.49 3,685.00 ------------ $106,387.37 Newport Beach Conference & Visitors Bureau Statement of Assets and Liabilities - Modified Cash Basis June 30, 1991 LIABILITIES AND FUND BALANCE CURRENT LIABILITIES Accounts Payable $18,936.25 Current Portion -Long Term Debt 8,865.00 ------------ Total Current Liabilities 27,801.25 LONG TERM DEBT N/P Bank -Equipment Loan Less Current Portion $40,664.66 (8,865.00) ------------ 31,799.66 FUND BALANCE General Fund Balance Net Income (Loss) 157,206.72 (110,420.26) ------------ 46,786.46 ------------ $106,387.37 See Accompanying Compilation Report Lf) -0 M N 1-1 Ol Vm Ul Ln Vt O Vt 10 v 1D 1D 01 N N O O .0 N w 1D H a O M to O OJ M N N N h 0 h In M H h O O CO m V0 w m H w 1D h H -;v H In H H co CD M M 1D 1D -.0 N N M O Ol <M N N CO .0 V� Oh In O V� CO CO Ol CO h In 1D N 1n H 1n C H O H M E 1D V0 H N 1D 1D H N VW Vr N H H H N to 1D N N H \ w O 01 01 N H M H M 1D Ln N N Co H CT N N h 1D V0 N N 1D m In M 01 H O h 01 M In h 01 O1 H co N Z Z N N O It l!'f Q1 O N N 10 O N h H CO C', O H . . . 4 M M to M co h 01 N H H O In Q H Co Co H M w Z En 0 0 0 0 0I O E 0 0 H z 1n un E W a }' N N a > a a z a E W 0 1D 10 CT CO h 1D 1D H 01 N O M M 1D O y H N N h In M H N H M h H M Co v V1 O\ M M N v h 1D 01 H M H Ol co H H N a. 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U TA U' H O m m U' O E H W H E O 0 9 a 4 z a w w ] Z co Z W � P4 ae U a as z U' W V] to H, "' a U m HWO 9 V] D+ \ z x 0 W 3 Z Z Z 1 E+ \ H\ Z Cw g P4 W E E U H w U z O O H H a DI El a> W H a w a > H to O z Z H 19 •= H O E y E .4i U H P: 'z x a 0 z Z U U H E F H E to E+ Z W Z EA a P4 a Q w W U P4 E" 4 H\ to co W .1 U H w O\ A a C] w V1 Z x E W a 4 a H .-7 P4 W W P4 o4>0mz�;EWwE\wwwIVu F z\ F WWW x a a a O H>> z 0 w a U0 w z W O O a w O E E E E E z a C4 a a m 0 O W O\ H a W m w "E- U P4 O E O z z O O E E a a 4 4 w U E a a z a P4 w O (o E U H H E u s4 0 a P4 C O ro a 0 U U) a C ro a E O U U a a� En CONVENTION CALENDAR 1991 Prepared by the Newport Beach Conference and Visitors Bureau 366 San Miguel Drive, Suite 200 Newport Beach, California 92660 About the Convention Calendar This calendar of conventions scheduled during 1991 in Newport Beach, California, was prepared in cooperation with the hotels and the convention bureau. The listed group business conforms to guidelines of the International Association of Convention and Visitor Bureaus as follows: * 50 room or more; * transient and solicitable; * regional, national or international in scope; * a recognized association or organization. Though there may be many other group meetings in Newport Beach, for the calendar, only those that conform to the above guidelines are included. Should you have any questions regarding this calendar of meetings, please feel free to call the bureau at 7147644-1100. RBG:r List NEWPORT BEACH CONFERENCE & VISITORS BUREAU CONVENTION CALENDAR 1991 NAME OF MEETING Assn. of Physical Plant Admin. of Universities American Heart Assn. GTE Directories Svcs. Corp. American Bar Assn. Amer. Financial Svcs. Assn. Unitek/3M ICI Americas, Inc. Natl. Management Assn. United Parcel Service Hoag Hospital Assn. of Operating Rm. Nurses College Survival, Inc. Nad. Bio -Therapy Study Group Organization of Nurse Exec., CA Amer. Planning Assn. Long Beach Memorial Hospital Amer. Academy of Otolarynagic Allergy Oriilame West Publishing Healthcare Financial Management Assn. MEETING TYPE DELEGATES DATES HOTEL Nati. 425 1/1-13/91 NB Marriott Nad. 385 1/9-15/91 Le Meridien Intl. 280 1/9-20/91 NB Marriott Natl. 245 1/22-26/91 Le Meridien Natl. 150 1/26-30/91 Hatt Nmportr Rgl. 130 1/26-30/91 NB Marriott Natl. 195 1/27-2/1/91 NB Marriott Rgl. 175 1/31-2/2/91 NB Sheraton Rgl. 60 2/4-8/91 NB Marriott Intl. 300 2/6-9/91 NB Marriott Nati. 150 2/8-9/91 Bim BV Ob Natl. 200 2/9-13/91 Le Meridien Rgl. 100 2/9-19/91 NB Marriott Rgl. 400 2/10-13/91 NB Marriott Rgl. 110 2/13-16/91 NB Marriott Rgl. 200 2/13-15/91 NB Marriott Nad. 250 2/16-20/91 NB Sheraton Natl. 125 2/21-24/91 Bim BF Club Nad. 135 2/23-26/91 NB Marriott Nati. 125 2/26-3/2/91 NB Marriott Unocal Nati. American Academy of Orthopedic Nati. Surgeons NB Marriott Johnson & Johnson Orthopedics Intl. Intermedics Orthopedics Nati. American Gas Assn. Rgl. Western Assn. of Transplant Rgl. Surgeons 100 Oscar Meyer Rgl. Catholic Health Corporation Natl. West Services, Inc. RgI. Society of Anesthesiologists Natl. Girl Scouts of the USA Natl. Employee Assistance -Professional Regl. Assn. NB Marriott Performance Warehouse Assn. Rgl. U.S. Council on Intl. Banking Nati. Xerox Systems Users Group Nad. Automotive Market Research Council Natl. Healthcare Financial Management Rgl. Calvary Chapel Natl. Nati. Inst. of Pension Admin. Nati. Intl. Soc. of Arboriculture Intl. Soc. of Industrial & Office Natl. Realtors 4/23-28/91 Blue Cross & Blue Shield Assn. Natl. 250 2/27-3/19/91 NB Marriott 150 3/3-3/13/91 NB Marriott 150 3/3-12/91 H," Impatr 90 3/4-12/91 Dalt Nmpala 50 3/5-8/91 NB Marriott 100 3/8-10/91 NB Marriott 140 3/13-16/91 NB Marriott 350 3/15-21/91 Int Nmpakr 200 3/21-27/91 NB Marriott 175 3/22-25/91 NB Marriott 175 4/3-9/91 H* Nmpaiw 250 4/5-11/91 Ub[d Nmpatr 100 4/10-14/91 NB Marriott 140 4/10-13/91 NB Sheraton 120 4/13-17/91 NB Marriott 180 4/14-17/91 Dalt Navpatr 200 4/23-28/91 NB Marriott 120 5/3-5/91 Marriott Sukm 250 5/5-8/91 NB Marriott 200 5/15-17/91 NB Sheraton 300 5/15-17/91 Dalt Nmpatr 225 5/19-23/91 NB Marriott Page Two Western Securities Transfer Assn. Rgl. 150 5/28-6/1/91 tlbcd Nmpurkr Amer. Soc. of Plastic & Natl. 175 5/30-6/2/91 NB Marriott Reconstructive Surgeons Amer. Soc. of Hands Therapists Nati. 300 6/21-23/91 Dalt Nmpaltr Rick Cole Car Auctions Natl. 500 7/3-8/91 Ubcd Nmpatr Catalina Sportswear Natl. 65 7/12-17/91 NB Marriott Golden Hill Meeting Planners Natl. 400 7/26-31/91 H,felt NmpaiE Education Design Natl. 50 8/9-11/91 NB Marriott Manufacturers Agents Natl. Assn. Natl. 50 8/15-19/91 Hyatt Nmpala- Rosenbluth Travel Intl. 240 8/30-9/2/91 NB Marriott Santa Fe Pacific Pipeline Natl. 170 10/6-9/91 NB Marriott American Academy of Opthamology Nati. 800 10/10-19/91 NB Marriott American Academy of Opthamology Nati. 85 10/10-19/91 Marriott Sues Nati. Assn. of Rehabilitation Natl. 250 10/17-20/91 NB Marriott Agencys California Credit Union League Rgl. 85 10/25-26/91 NB Marriott Nevada State Medical Assn. Rgl. 200 10/31-11/3/91 Four Seasons Nati. Rolm Users Group Natl. 225 11/4-9/91 NB Marriott Amer. Heart Assn. Natl. 400 11/7-16/91 NB Marriott Rick Cole Car Auctions Natl. 500 11/27-12/2/91 Kett Nmpurkr Amer. 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