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17 - Visit Newport Beach, Inc. FY 2022 Destination Business Plan Supplement and Budget, and FY 2021 Performance Standards Report
Q �EwPpRT CITY OF O � z NEWPORT BEACH <,FORN'P City Council Staff Report August 24, 2021 Agenda Item No. 17 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Grace K. Leung, City Manager - 949-644-3001, gleung@newportbeachca.gov PREPARED BY: Melanie Franceschini, Management Analyst mfranceschini@newportbeachca.gov PHONE: 949-644-3028 TITLE: Visit Newport Beach, Inc. FY 2022 Destination Business Plan Supplement and Budget, and FY 2021 Performance Standards Report ABSTRACT: Visit Newport Beach, Inc. (VNB), a business unit of Newport Beach & Company, provides destination marketing services to the City of Newport Beach (City) under an agreement for Tourism Promotion, Branding and Marketing Services. Under the terms of the agreement, VNB is required to submit certain records to the City Council for its review and/or approval. Newport Beach & Company has submitted the Fiscal Year (FY) 2022 Destination Business Plan Supplement and Budget for the Council's review and VNB's FY 2021 Performance Standards Report for the Council's review and approval. RECOMMENDATION: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Review, receive and file the FY 2022 Newport Beach & Company Destination Business Plan Supplement; c) Receive and file the Visit Newport Beach, Inc. Leisure Marketing (TOT) FY 2021 Performance Standards Report; and d) Review and approve the Visit Newport Beach, Inc. Leisure Marketing (TOT) FY 2022 Budget. 17-1 Visit Newport Beach, Inc. FY 2022 Destination Business Plan Supplement and Budget, and FY 2021 Performance Standards Report August 24, 2021 Page 2 DISCUSSION: Visit Newport Beach, Inc. (VNB) VNB, a nonprofit organization (under IRS code §501(c)(6)), is the destination marketing organization for Newport Beach. Under an Agreement with the City, VNB provides marketing services to the City and community using transient occupancy tax revenues. The agreement was entered into on September 27, 2011. It was first amended in January 2014 to extend the term to December 31, 2024, switch from an annual to biennial budget, update contact information and add public benefit funding. The City Council approved a second amendment to the agreement in August 2014 to change the reporting timeline for the Performance Standards (Attachment C), Marketing Goals and Marketing Plan (Attachment A) from annual to biennial to correspond with the biennial reporting timeline. The VNB Board of Directors met on May 20, 2021 to approve the Destination Business Plan Supplement and Budget (Attachment B) for FY 2022. After the close of the fiscal year, VNB staff updated and reworked the performance standards report required under its agreement with the City to better demonstrate the new campaigns and annual performance metrics it has adopted for its international sales and marketing campaigns in response to the COVID-19 pandemic. All required documents were received by the City in July and are attached for the Council's review. In addition, included as Attachment D, is the FY 2021-2022 budget for Newport Beach & Company. It is provided for informational purposes to show the detailed expenditures that the $1.9 million in Newport Beach & Co fees (see account 68001 in VNB's Leisure Marketing budget) cover. FISCAL IMPACT: Under its Agreement with the City, VNB receives 18% of all Transient Occupancy Tax collected by the City to fund destination marketing services and activities. VNB projects it will receive approximately $3,922,729 in TOT funding in FY 2021-22 (Attachment B). This estimate is higher than the City's estimate of $3,403,160, as included in its FY 2021-22 General Fund budget. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). 17-2 Visit Newport Beach, Inc. FY 2022 Destination Business Plan Supplement and Budget, and FY 2021 Performance Standards Report August 24, 2021 Page 3 ATTACHMENTS: Attachment A — FY 2022 Newport Beach & Company Destination Business Plan Supplement Attachment B — VNB Leisure Marketing (TOT) FY 2022 Budget Attachment C — VNB Leisure Marketing (TOT) FY 2021 Performance Standards Report Attachment D — Newport Beach & Co FY 2022 Budget 17-3 ATTACHMENT A FISCAL -YEAR 2022 RE-ENGAGE. REVITALIZE. REJOICE. NEWPORT BEACH & COMPANY DESTINATION BUSINESS PLAN SUPPLEMENT Q LVA PORT B E AC IA & COMPANY Tim 17-5 TABLE OF CONTENTS INTRODUCTION 04 EXECUTIVE SUMMARY 05 NEWPORT BEACH & COMPANY OVERVIEW ANDAUDIENCE OVERVIEW VISIT NEWPORT BEACH, INC. BUSINESS PLAN 08 LEISURE TRAVELER AUDIENCE BUSINESS PLAN 32 MEETING PLANNER AUDIENCE BUSINESS PLAN NEWPORT BEACH & COMPANY BUSINESS PLAN 50 LOCAL COMMUNITY AUDIENCE BUSINESS PLAN 66 ORGANIZATION AUDIENCE BUSINESS PLAN GOVERNANCE 82 BUDGETS 84 GOALS 86 BRAND ARCHITECTURE 90 EXECUTIVE COMMITTEE & BOARD OF DIRECTORS 91 TBID BOARD OF DIRECTORS AND MARKETING COMMITTEE 92 NEWPORT BEACH & COMPANY TEAM kw { -1,110 wo XAW TF �ti�► OEM - Z FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT 1� Now Y -dbi & t 17-7 to; 04 EXECUTIVE SUMMARY 05 NEWPORT BEACH & COMPANY OVERVIEW AND AUDIENCE OVERVIEW - �, NEWPORTBEAC HANDCO.COM 17-8 EXECUTIVE SUMMARY After a year of dramatic health and economic implications from the COVID-19 global pandemic and its devastating toll on the hospitality, travel, tourism, restaurant, attraction and entertainment industries, Newport Beach & Company is poised to accelerate growth and recover as we re-engage marketing and sales in all of our markets, revitalize our domestic and international programs, and rejoice in the return to travel, meetings, conferences and a strong, vibrant tourism, meetings and visitor economy in Newport Beach, California. We survived the worst period ever in the tourism industry, and this is our comeback year. In this new plan, Newport Beach & Company will lead the region and its competitors in leisure travel recovery and bring meetings and conferences back to Newport Beach via an historic $1.2 million paid -advertising campaign and another historic Group Sales Client 1,000 Reasons" Incentive to build back our tourism economy and meetings industry even better. Through this new plan, we will re-engage with customers and clients, meeting planners and media and consumers throughout all of our feeder markets and beyond. The new fiscal year will also ring in the return of Visit Newport Beach to the U.K. and possibly Canadian tourism markets. And, the Group Sales Team will hit the road again selling and promoting this great destination to meeting and conference planners across the United States. We know that our hotel partners have lost a significant number of their sales and marketing professionals over the last year, and we are prepared to help be on the front lines to help recover the group -meeting segment. As Newport Beach & Company enters the second year of our two-year, business -planning cycle, we present this updated 2022 Destination Business Plan Supplement that encompasses our revised objectives, strategies, goals and budgets for the next fiscal year. Throughout the unique audience -based planning approach, Newport Beach & Company challenged its team to re-engage, revisit and rejoice in initiatives that will take Newport Beach into the new post-COVID-19 travel, tourism and meetings world. With our entrepreneurial spirit and industry-leading, community -marketing model, our destination marketing organization of the future never rests on its laurels. It constantly seeks new heights, new challenges and innovative ways to be the engine that ignites global passion and drives economic vibrancy, success and results for Newport Beach, California. As we prepare for the next monumental fiscal year, we stand poised to re-engage, revisit and rejoice in future success in fiscal -year 2022. It's time to get to work. JOURNEY WELL Gary C. Sherwin, APR, CDME President & CEO New ort Beach & Company ;fit -�'!._ _"rte 4• ~ �.. l� _J" �.. Debbie Snavely Chairperson Newport Beach/& Company 4 FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT 17-9 AUDIENCE OVERVIEV Newport Beach & Company flips its strategic -planning process on its head and no longer creates future plans by functional departments or areas. Instead, the entire company looks at planning from its customers' points of view vs. internally looking out. For Newport Beach & Company, the organization interacts with four major customer/ audience groups: Leisure Travelers, Meeting Planners, Local Community Partners and the Organization & Board of Directors. Everyone from the receptionist all the way up to the President & CEO is placed onto four audience -based strategic -planning teams, which meet over the course of several months to re -imagine and re -invest in developing new objectives, strategies and tactics designed to generate incremental travel, meetings, partnerships or engagement with the organization and to Newport Beach, California. LEISURE TRAVELER Leisure travelers are visitors who stay in Newport Beach that enhance the local economy through direct visitors spending at businesses and through transient -occupancy tax (TOT)accommodations. MEETING PLANNER Meeting Planners manage the planning and operations for conferences, meetings, events in Newport Beach's tourism business improvement district (TBID) hotels and hospitality industry businesses. ORGANIZATION & BOARD OF DIRECTORS Newport Beach & Company and Visit Newport Beach staff, executive team, executive committee and board of directors comprised of the destination's hospitality leadership. LOCAL COMMUNITY Members and leaders of the Newport Beach community from a network of organizations including City of Newport Beach; hospitality and tourism businesses including hotel, retail, restaurant, attractions recreation; business ovement districts s), merchant iciations; event nizers; destination <eting organizations; rant associations; I residents and �rnment officials. NEWPORTBEACHANDCO.COM 17-10 VISIT NEWPORT BEACH, INC BUSINESS PLAN mu T .1 VATION BUSINESS PLAN S Lk o T .1 VATION BUSINESS PLAN S Lk o 10 08 E TRAVELER AUDIENCE BUSINESS PLAN 32 G PLANNER AUDIENCE BUSINESS PLAN y LE TRAVELER AUDIENCE BUSINESS PLAN Visitors and potential visitors to Newport Beach who bring valuable revenue that enhances the local economy primarily through transient -occupancy tax (TOT) and direct visitor spending. 17-14 LEISURE TRAVELER FUTURE MAP r EXPLOIT SSTRENGTHS NATURAL RESOURCES • Newport Harbor/Beaches • State Beach • Back Bay - local estuary • Clean beaches YEAR-ROUND OUTDOOR WEATHER • Biking/Hiking • Boating/Kayaking VISITOR OFFERINGS • Diverse accommodations • Engaging activities • Award-winning hotels and resorts • World-renowned events • Nearby world-class attractions MITIGATE WEAKNESSES TRAVELER PATTERNS • Short length of stay • High rate of day -trip versus overnight • Low winter occupancy LIMITED BEACHFRONT HOTELS PARKING AND PUBLIC TRANSPORTATION OPTIONS : LIMITED IN -CITY ATTRACTIONS GOVERNMENT & COMMUNITY DEVELOPMENT • Safe community • Clean, efficient airport (SNA) • Relatively close to LAX airport • Well-maintained infrastructure CENTRALSOUTHERN CALIFORNIA LOCATION 450 RESTAURANTS, CELEBRITY CHEFS HIGH-END, UNIQUE RETAIL, SHOPPING AND BOUTIQUES DIVERSE NEIGHBORHOODS COMMUNITY RELATIONSHIPS BRAND -DEFINED DESTINATION 10 FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT 17-15 PREPARE FOR CONTINGENCIES OR THREATS .................................................. WEATHER AND ENVIRONMENTAL HAZARDS ID00:0 ECONOMIC UNCERTAINTY UNCERTAIN POLITICAL CLIMATE COASTAL COMPETITION INTERNATIONAL CURRENCY EXCHANGE RATE FLUCTUATIONS SHARING ECONOMY 1WMONITOR TRAVEL BANS, LAPTOP BANS, OPPORTUNITIES VISA APPROVALS, ............................................................: IMMIGRATION ISSUES NEW AND REFRESHED HOTEL PROPERTIES EXPANDED VISITOR MARKETS • Niche audiences • International efforts • Business/Frequent Individual Traveler (FIT) • Second- and third -tier markets LEISURE /SALES PARTNERSHIPS RECOGNIZED EVENTS STATE AND NATIONAL TOURISM MARKETING EFFORTS MILLENNIAL / GEN Z TRAVELERS ECO AND PURPOSE -DRIVEN TOURISM VFR TRAVEL LIDO MARINA VILLAGE REVITALIZATION • Lido Marina Village • Lido House hotel VISITOR -TRANSPORTATION OPPORTUNITIES (TROLLEY) TRANSPORTATION RELATIONSHIPS • Balboa Island Trolley • Airline opportunities and airport • Metro and public transportation COVID-19 & FUTURE PANDEMICS • Future possible variants being vaccine resistant • Vaccine hesitancy in U.S. population • Vaccine availability and usage in top international in -bound markets • Requirements for "Vaccine Passports" from/to international markets • Requirements for "Vaccine Passports" to attend large-scale events/meetings • Pandemic - Induced Recession • Pandemic shutdowns of travel • Quarantines • Travel Bans on international travel ECONOMIC INFLATION OR STAGNATION POLITICAL DISCOURSE & FEAR -MONGERING LACK OF FAIR & BALANCED MEDIA/ SOCIAL MEDIA U.S. UBER-LIBERTARIAN TENDENCIES U.S. RACE RELATIONS & PROTESTS ON EITHER SIDE ORANGE COUNTY/HUNTINGTON BEACH PERCEPTIONS/ MISPERCEPTIONS NEWPORTBEACHANDCO.COM 17-16 EACH GOE F This sun seeking crowd is singularly motivated by beach destinations and beach activities for vacations. This group is Newport Beach & Company's family travel persona with demographics between 45-54, married with 1-2 children and post -graduate education. This persona group enjoys an active outdoor lifestyle, dining out, cultural outings and has a willingness to invest in premium experiences from quality brands. rr A These travelers only invest in trips and destinations that are buzzed about, exclusive, on -trend and provide ample opportunity for social media content and clout. This group is interested in the latest and greatest in premium products, have worldly interests, enjoy nightlife, eating out and opt to try new things. The demographics for this group ranged from 25-54 but skewed slightly younger than other personas. CULINAR DNNI`)ISSEUR These nomadic foodies travel for local culinary experiences to capture them to share on social media. Demographics are in the 35-54 age range but all age groups were represented in this group and a majority were also married with children. A seeker of knowledge, this group conducts significant amount of research before purchasing, but once committed is likely to become a brand evangelist, sharing their experiences and content online with their followers. '' LUXU R"'Y" SAVE LE R The Luxury Traveler is an accomplished, well-informed and well-educated discerning group likely to stay in five-star resorts and invest in high-end experiences. This persona group skews toward the 35-54 age range with a HHI of $200K+. This group identifies as affluent, indulges in latest fashions and premium products and is interested in all aspects of the luxury lifestyle categories. ANATIC"' These wellness warriors specifically take trips to visit spas and indulge in a variety of healthy experiences while on vacation. This group was highly -likely to have a graduate degree, is married with kids and ages were fairly spread out between 25-54. Research showed this group has affinities for environmentally -friendly living, vegan/vegetarian cuisine and eco -friendly products. This group is more likely to embark on adventures than other personas and seeks volunteerism and educational opportunities while traveling. i 4 Jti Fashion, local shopping, beautiful ambiances and places are the keys to winning over this group. This persona boasts high -affinities for fashion, beauty, 6 celebrity news and are more image -conscious than any other persona. The profile for this group tipped toward the 35-44 range but was present among all age demographics, are highly -educated and married with 1-2 children. A duality exists in what drives the Unique Boutiquer: A localized, cultural, small business shopping experience for one -of -a -kind finds while also seeking premium brands ;;` and all things glam. Romance Seekers believe travel is the best way to connect with their loved one and choose destinations for the sole purpose of enjoying a romantic environment. This persona group is educated, married and relatively even across the age categories but skewed slightly higher in the 45-54 demographic. This group is worldly, well-informed, risk takers and interested in culture and adventures. ANATIC"' These wellness warriors specifically take trips to visit spas and indulge in a variety of healthy experiences while on vacation. This group was highly -likely to have a graduate degree, is married with kids and ages were fairly spread out between 25-54. Research showed this group has affinities for environmentally -friendly living, vegan/vegetarian cuisine and eco -friendly products. This group is more likely to embark on adventures than other personas and seeks volunteerism and educational opportunities while traveling. i 4 Jti Fashion, local shopping, beautiful ambiances and places are the keys to winning over this group. This persona boasts high -affinities for fashion, beauty, 6 celebrity news and are more image -conscious than any other persona. The profile for this group tipped toward the 35-44 range but was present among all age demographics, are highly -educated and married with 1-2 children. A duality exists in what drives the Unique Boutiquer: A localized, cultural, small business shopping experience for one -of -a -kind finds while also seeking premium brands ;;` and all things glam. LEISURE TRAVELERS BUSINESS PLAN EXECUTIVE SUMMARY Newport Beach & Company, through its business -unit structure, presents this integrated marketing, media relations, digital marketing, brand development, communications and meetings -services business plan supplement to attract targeted leisure visitors and meeting attendees to Newport Beach in the 2022 fiscal year. The City of Newport Beach has contracted with Newport Beach & Company to foster a strong tourism environment; to attract visitors with strategic marketing efforts; and to engage them in -market to create a positive visitor experience. By enticing visitors to stay in Newport Beach, the City of Newport Beach generates Transient -Occupancy Tax (TOT), its third-largest revenue source. This income to the city benefits residents, saving each household an average of $1,139 in additional taxes every year, while maintaining the exceptional infrastructure and city services expected in Newport Beach. To keep the Newport Beach economy churning at the same levels and to keep thousands of local businesses open, each household would have to spend an additional $43,922 more locally each year in Newport Beach, to make up for the economic benefits of tourism. Tourism plays a vital role in the Newport Beach economy. Before the COVID-19 pandemic, visitors spent significant dollars at hotels, restaurants, attractions, retail and local businesses. The 7.3 million annual visitors propelled $1.2 billion into Newport Beach's economy, supporting more than 16,000 jobs each year and generating more than $43 million in local taxes making tourism one of the purest and most lucrative forms of economic development. In the wake of the pandemic, which shutdown tourism, hospitality and the greater economy, Newport Beach & Company adopted a new internal mantra, "Re -imagine, Revitalize and Rejoice." Newport Beach & Company plans to continue to think in new, innovative ways to drive economic recovery for our local tourism economy by expanding its entrepreneurial approach with new initiatives that support our hotel, restaurant, retail and attraction partners. 14 FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT 17-19 Our hospitality, tourism, entertainment and culinary industries all screeched to a grinding halt in March 2020 as first international then domestic U.S. travel stopped with stay-at-home orders implemented across the globe. Newport Beach hotels went from 80 -percent occupancy in February 2020 to single -digits in March 2020, and unemployment claims leaped to the highest levels since the Great Depression. In the subsequent quarters of the pandemic, Newport Beach experienced peaks and valleys with summer of 2020 faring fairly well on weekends and through the fall. The spike in COVID-19 cases in Southern California peaked at its highest points December 2020 through January 2021—when the State of California and Orange County reverted back into tighter lock -downs. February through spring of 2021 experienced stronger weekend leisure business, but mid -week continued to be at lower levels. NEWPORT BEACH HOTEL PERFORMANCE: MONTHLY OCCUPANCY RATE M 90% 78.7% 80% 69.1% 70% 67.6% 67.3% 60% 50% 40% 30% 20% 10% 0% OCT NOV DEC JAN SOURCE: STR, INC. 79.8% 30.0% 27.6% ' 13.4 9/c -Ij FEB MAR APR MAY 44.2% 43.9% 45.2% 37.3% 38.2% JUN JUL 2020 OCCUPANCY MONTHLY RATE OCT NOV DEC I JAN FEB MAR 2021 The positive story of the past year has been an extremely strong average daily hotel rate. Newport Beach hotels and resorts continued to outperform pre -pandemic levels on hotel rates anywhere from $10 to $100 over previous years. NEWPORT BEACH HOTEL PERFORMANCE: AVERAGE MONTHLY RATE ($) $350 $307 $321 $306 $300 $275 $297 $297 $299 $292 $279 $242 $243 $246 $241 $266 $263 $264 $255 $250 $236 $200 $150 $100 $50 $0 OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DE :B MAR 2019 2020 1 2021 SOURCE: STR, INC. NEWPORTBEACHANDCO.COM 17-20 38.4% 29.6°/ 25.0% 23.9% 1 OCT NOV DEC I JAN FEB MAR 2021 The positive story of the past year has been an extremely strong average daily hotel rate. Newport Beach hotels and resorts continued to outperform pre -pandemic levels on hotel rates anywhere from $10 to $100 over previous years. NEWPORT BEACH HOTEL PERFORMANCE: AVERAGE MONTHLY RATE ($) $350 $307 $321 $306 $300 $275 $297 $297 $299 $292 $279 $242 $243 $246 $241 $266 $263 $264 $255 $250 $236 $200 $150 $100 $50 $0 OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DE :B MAR 2019 2020 1 2021 SOURCE: STR, INC. NEWPORTBEACHANDCO.COM 17-20 Compared against Newport Beach's top competitive leisure destinations, Newport Beach has pulled ahead of its comp set in Average Daily Rate for every month since the start of the pandemic commencing in March 2020 through March 2021. In each of those months for the past year, Newport Beach has surpassed Santa Monica and Santa Barbara for the first time in its documented history. NEWPORT BEACH HOTEL PERFORMANCE: AVERAGE MONTHLY RATE ($) VS. COMPETITIVE DESTINATIONS $400 $350 $300 $250 $200 $150 $100 $50 $0 OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR 2019 2021 HUNTINGTON BEACH SAN DIEGO IRVINE SANTA BARBARA ANAHEIM SANTA MONICA�NEWPORT BEACH SOURCE: STR, INC. The COVID-19 pandemic hit the travel, tourism, hospitality, attraction, restaurant and entertainment industries especially hard. U.S. Travel Association predicts that total travel spending declined by 45 percent in 2020 and will not return to 2019 levels until 2024 or 2025. Total travel industry losses reached $510 billion by the end of 2021 and a cumulative $1 trillion by the end of 2023. TOTAL TRAVEL SPENDING IN THE U.S. ($ BILLIONS) $1,200 $1,088 $1,127 $1,043 $1,100 $1,000 $800 $617 $600 $400 $200 $0 2018 2019 2020 2021 2022 2023 2024 PRIOR YEARS TRAVEL FORECAST SOURCE: U.S. TRAVEL ASSOCIATION'S TRAVEL FORECAST MODEL, TOURISM ECONOMICS, DEPARTMENT OF LABOR, DEPARTMENT OF COMMERCE. 16 FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT 17-21 U.S. Gross Domestic Product (GDP) is forecast to recover to prior -peak levels (2019 Q4) in the final quarter of 2021, business investment in the second quarter of 2022 and employment in the second quarter of 2023. $25,000 $20,000 $15,000 $10,000 $5,000 $0 GROSS DOMESTIC PRODUCT IN U.S. ($ TRILLION) � GDP (NORMAL) $ TRILLION GDP (REAL) % CHANGE SOURCE: U.S. TRAVEL ASSOCIATION'S TRAVEL FORECAST MODEL, TOURISM ECONOMICS, DEPARTMENT OF LABOR, DEPARTMENT OF COMMERCE. 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% After a 50 -year low at the end of 2019 (3.9%), the U.S. Unemployment Rate increased significantly this past year reaching 14.7% in April 2020 and 13.3% in May 2020. The pandemic and resulting economic aftermath including closures of many sectors of the economy resulted in the highest unemployment rate since the Great Depression in 1933. The loss of jobs was severe in both its scope and speed. During the Financial Crisis of 2009, 9 million jobs were lost over a period of two years. During the COVID-19 pandemic, 19.6 million jobs were lost in just three months. According to U.S. Travel Association, one third of all jobs lost in the U.S. economy are attributable to declines in direct travel employment. 9.0% 8.0% 7.0% 6.0% 5.0% 4.4% 4.0% 3.0% 2.0% 1.0% 0.0% 2017 U.S. UNEMPLOYMENT RATE (%) 8.3% 3.9% 3.7% 6.7% 5.5% 4.6% 2018 2019 2020 2021 2022 2023 PRIOR YEARS TRAVEL FORECAST SOURCE: U.S. TRAVEL ASSOCIATION'S TRAVEL FORECAST MODEL, TOURISM ECONOMICS, DEPARTMENT OF LABOR, DEPARTMENT OF COMMERCE. NEWPORTBEACHANDCO.COM 17-22 According to U.S. Travel Association, "After growing consistently for more than a decade, domestic leisure travel (defined as the number of person trips) is projected to decline by 24% in 2022 while domestic leisure travel spending is projected to decline by 34%." "Following a slight decline in 2019, international inbound travel is projected to shrink by a staggering 76 percent in 2020. Travel from Canada and Mexico is projected to fall by 77 percent and 61 percent respectively. Overseas travel is particularly susceptible to the effects of the global pandemic with travel from overseas markets projected to drop by 82 percent in 2020. International travel spending is projected to decline by a similar 77 percent. International inbound travel (visitations as well as spending) is projected to remain below 2019 levels even in 2024." TOTAL LEISURE & INTERNATIONAL TRAVEL SPENDING IN THE U.S. ($ BILLIONS) $800 $649 $681 $666 $702 $600 $450 $541 $400 $200 $157 $155 . . $36 $62 $95 $118 $132 $0 - I i IIIIIIII I = I IIIA 2018 2019 2020 2021 2022 2023 2024 PRIOR YEARS TRAVEL FORECAST ■ LEISURE TRAVEL SPENDING ■ INTERNATIONAL TRAVEL SPENDING SOURCE: U.S. TRAVEL ASSOCIATION'S TRAVEL FORECAST MODEL, TOURISM ECONOMICS, DEPARTMENT OF LABOR, DEPARTMENT OF COMMERCE. "International visitations to the U.S. are projected to fall by 60 million—from 79 million in 2019 to just 19 million in 2020. A 76 percent projected decline in visitations will be accompanied by a 77 -percent decline in international travel spending. A full recovery to 2019 levels is not likely until 2025. The U.S. is expected to further lose market share as travel to competitive markets is projected to recover faster than travel to the U.S. After declining from 13.7 percent in 2015 to 11.3 percent in 2019, the U.S. share of long-haul travel is expected to fall by an additional four percentage points in 2020 to 7.2 percent." U.S. SHARE OF GLOBAL LONG -HAUL TRAVEL 16.0% 1410% 13.7% 13.0% 12.2% 11.7% 11.3% 12.0% 9.8% 10.0% 9.1% 8.0% 7.2% 7.8% 6.0% 4.0% 2.0% 0.0% 2015 2016 2017 2018 2020 2021 2022 2023 2024 PRIOR YEARS TRAVEL FORECAST SOURCE: U.S. TRAVEL ASSOCIATION'S TRAVEL FORECAST MODEL, TOURISM ECONOMICS, DEPARTMENT OF LABOR, DEPARTMENT OF COMMERCE. 18 FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT 17-23 As more and more of the U.S. and global populations begin to receive COVID-19 vaccinations, domestic leisure travel is expected to increase starting with regional, in-state travel through spring 2021 and into a wider domestic travel footprint into summer 2021. Newport Beach is uniquely positioned geographically and demographically to recover quickly in summer 2021 based on its proximity to nearly 20 million travelers in Southern California with high disposable incomes ready to spend and travel. Multigenerational travel is expected to be a major driver of travel to Newport Beach as families are eager to reunite grandparents with grandkids and generations of all ages after being separated for more than a year. Generation Z travelers (born between 1997-2015) spent a disproportional amount of travel dollars during the pandemic, so re-engaging with these travelers is crucial as they become older and wealthier. Celebratory travel is also expected to be a major theme as the travel and tourism industry recovers—families and friends will want to experience all that life has to offer and celebrate the small and major events in bigger ways. Newport Beach is uniquely positioned to garner these benefits of multigenerational, celebratory and new age groups of travelers. Lastly, with business and group travel expected to return in fourth quarter of 2021, share of leisure rooms available for sale might become less prevalent. During the pandemic with only leisure travel dominating the destination, Newport Beach experienced extremely higher average daily rates. As business and group travel return, hotel occupancy will rise throughout the destination, but average daily rate might drop from the historic pandemic highs. While average daily rate may decline, the profitability of hotels via ancillary business/group travel spending will significantly increase Newport Beach hotels' profitability and RevPAR. As countries begin to increase vaccinations, Newport Beach & Company will prioritize its international markets for the greatest return on investment with the United Kingdom and Canada as the first two markets to come back from the depths of the recession. Newport Beach & Company is planning to restart its U.K. representation in the second quarter and in the Canadian market in third quarter of FY2022. By leveraging all of the planning team's resources, the cross -departmental team developed this integrated business plan for the leisure traveler customer segment with a management -by -objectives approach: Where objectives are quantifiable goals; strategies form strategic approaches to reaching the objectives; and tactics are specific projects that support overarching strategies. Through these objectives, strategies and tactics, Newport Beach & Company delivers this plan to re -imagine, revitalize and rejoice our hospitality and tourism industry. NEWPORTBEACHANDCO.COM 17-24 LEISURE TRAVELER BUSINESS OBJECTIVES OBJECTIVE 7 RE-ENGAGE & REVITALIZE MARKETING CHANNELS RE-ENGAGE AND REVITALIZE MARKETING CHANNELS TO LEISURE TRAVELERS TO GENERATE AT LEAST $20 MILLION IN ECONOMIC IMPACT TO NEWPORT BEACH VIA TARGETED NEED PERIODS FOR NEWPORT BEACH HOTELS, RESORTS, ISM Amp%, SHORT-TERM RENTALS, OTHER ACCOMMODATIONS AND ALL f VISITOR -SUPPORTED BUSINESSES. OBJECTIVE 2 PERCEPTIVELY PERSONALIZE' -- PERSONAS RE-ENGAGE AND RETARGET MORE THAN 75 MILLION HIGHLY -TARGETED POTENTIAL 4' LEISURE TRAVELERS UTILIZING THE SEVEN NEW LEISURE TRAVELER PERSONAS AS . A MISSION FILTER TO IDENTIFY AND REACH THE MOST OPTIMAL, QUALIFIED AND LUCRATIVE LEISURE TRAVELERS TO NEWPORT BEACH. OBJECTIVE 3 DIGITAL DESTINATION STORY1 -LLING RE -IMAGINE THE NEWPORT BEACH DESTINATION STORY ACROSS ALL OWNED AND EARNED DIGITAL CHANNELS TO INCREASE BRAND AWARENESS, DIGITAL ENGAGEMENT, DESTINATION KNOWLEDGE AND PARTNER CONTENT BY RE-ENGAGING AND REJOICING WITH LEISURE TRAVELERS ACROSS THE DIGITAL -MARKETING SPECTRUM. 20 FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT 17-25 OBJECTIVE 4 BIG, BOLD BRAND -BUILDING INITIATIVES RE-ENGAGE AND REVITALIZE THE NEWPORT BEACH DESTINATION BRAND VIA BIG, BOLD BRAND -BUILDING INITIATIVES TO INCREASE NEWPORT BEACH BRAND AWARENESS, NET PROMOTER SCORES AND OTHER BRAND -TRACKING TOOLS ACROSS ALL TARGETED LEISURE TRAVELER PERSONAS. OBJECTIVE 5 INTERNATIONAL MARKETS & TRAVELERS RE-EVALUATE & RE-ENGAGE PREVIOUS AND POTENTIAL INTERNATIONAL FEEDER MARKETS TO GENERATE $5 MILLION IN VISA CREDIT CARD SPENDING IN NEWPORT BEACH BY PRIORITIZING THE RE-ENTRY AND RE-ENGAGEMENT WITH THOSE INTERNATIONAL MARKETS WITH THE GREATEST PROPENSITY TO TRAVEL TO NEWPORT BEACH GIVEN COVID-19 PANDEMIC RESTRICTIONS, QUARANTINES, VACCINATION LEVELS AND POTENTIAL VISITOR SPENDING. MICRO -AUDIENCES FREQUENT INDIVIDUAL TRAVELERS (FIT) -LEISURE VISITORS ON A VACATION OR GETAWAY FOR PLEASURE OR LEISURE PURPOSES OR A BUSINESS TRAVELER EXTENDING THEIR STAY INTO A LEISURE/PLEASURE GETAWAY FROM REGIONAL, NATIONAL AND INTERNATIONAL FEEDER MARKETS. NEW TARGETED LEISURE TRAVELER PERSONAS: - BEACH GOERS - BUZZ BOUND - CULINARY CONNOISSEUR - LUXURY TRAVELER - ROMANCE SEEKERS - SPA FANATIC - UNIQUE BOUTIQUERS TRAVEL TRADE -TOUR OPERATORS, TRAVEL WHOLESALERS, TRAVEL AGENCIES/AGENTS BOOKING TRAVEL FOR INDIVIDUAL OR GROUPS OF LEISURE TRAVELERS TO NEWPORT BEACH. LOCAL RESIDENTS -INVITING FRIENDS AND RELATIVES TO VISIT NEWPORT BEACH -VISITING FRIENDS AND RELATIVES (VFR) BUSINESS TRAVELERS/MEETING ATTENDEES -CONFERENCE, CONVENTION OR MEETING ATTENDEES AND BUSINESS TRAVELERS TRAVELING TO NEWPORT BEACH OR THE REGION FOR A MEETING OR CONFERENCE WHO EXTEND THEIR STAY EITHER BEFORE OR AFTER THE MEETING/CONFERENCE THEREBY BECOMING LEISURE TRAVELERS MEDIA/INFLUENCERS-TRADITIONAL AND DIGITAL MEDIA INCLUDING TRAVEL, CONSUMER AND TRADE MEDIA AS WELL AS SOCIAL MEDIA INFLUENCERS WHO RECOMMEND TRAVEL TO CONSUMERS VIA MEDIA OUTLETS OR SOCIAL MEDIA CHANNELS. NEWPORTBEAC HANDCO.COM 17-26 OBJECTIVE 1 LEISURE TRAVELER STRATEGY 1: RE-ENGAGE & REVITALIZE MARKETING CHANNELS RE-ENGAGE AND REVITALIZE MARKETING CHANNELS TO LEISURE TRAVELERS TO GENERATE AT LEAST $20 MILLION IN ECONOMIC IMPACT TO NEWPORT BEACH VIA TARGETED NEED PERIODS FOR NEWPORT BEACH HOTELS, RESORTS, SHORT-TERM RENTALS, OTHER ACCOMMODATIONS AND ALL VISITOR -SUPPORTED BUSINESSES. Develop highly -targeted, fully integrated $1.2 million paid -media leisure marketing campaigns targeting exact need periods to generate the highest leisure spend at the right time targeting families, multigenerational, millennials, rejoiceful and celebratory travel. TACTICS: • Place strategic paid media buys to promote Newport Beach on media channels most relevant to potential travelers in targeted media markets to drive incremental visitation, spending, longer length of stay and repeat trips to Newport Beach. • Ensure all marketing, messaging and paid media encourages travel to Newport Beach during mid -week, specific holidays or need periods when Newport Beach hotels and resorts need the business the most. • Need Periods: - Summer 2021 - Mid -week and last two weeks of August - Fall 2021 - Mid -week and key holidays (Veteran's Day, Columbus Day) - Winter 2021-2022 - Weekends, mid -week, last two weeks of December/Christmas Boat Parade and the following 2022 holiday weekends/weeks: Martin Luther King Day, President's Day, Ski Week. - Spring 2022 - Mid -week and bad weather weekends to conquer May Gray/June Gloom decreases in visitation and assist with filling slow holidays: Spring Break, Easter and Mother's Day. • These campaigns will stress the destination's authentic, inherent brand benefits of vitality, health and wellness and position Newport Beach as a safe respite from global health and economic conditions. • Plan and place paid media using new leisure traveler personas as a filter to ensure targeted messaging to the right leisure traveler with the right, customized message to that consumer, at the right time they're considering travel and via the right marketing channels/media each specific audience persona consumes and uses. • The seven new personas will be targeted in the following tier -one media markets: San Francisco, Los Angeles, San Diego, Phoenix, Las Vegas and Inland Empire. • Utilize digital resources to push messaging to existing and new Newport Beach leisure audiences. • Develop packages with hotel, retail, activities and dining partners to offer one-stop shopping vacation options during need periods and to increase average length of stay. 22 FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT 17-27 STRATEGY 2: Plan and execute highly -targeted influencer marketing and media relations with integrated messaging to strategic leisure travelers in paid media markets to coincide with paid media marketing campaigns. This will generate earned media exposure and eventual trips during exact need periods to produce the highest leisure spend at the right time targeting families, multigenerational, millennials, rejoiceful and celebratory travel. TACTICS- • Utilize media relations to spread message through trusted media sources and influencers to promote partners and destination brand during campaign time frames. • Partner with key, brand -defining influencers, bloggers and media to reach targeted personas in paid media markets. • Specifically target media relations efforts in the same paid -media markets to create synergy and boost brand awareness during campaign periods. • Maximize paid media exposure through value added editorial and earned media coverage to create fully integrated campaigns. • Plan a quarterly events calendar to guide campaign messaging, timing and ad placements. STRATEGY 3: Utilize new Zartico software system (Destination Operating System) along with ADARA, Arrivalist, Uber Media, Ad Effectiveness Studies and Economic Impact & Visitor Profile Research Study to manage, track, optimize all leisure media buys, content -marketing results, return on investment, economic impact, social engagement and destination visitation. TACTICS' • Explore new partnership with Zartico software system (Destination Operating System). • Renew partnership with ADARA and possibly explore Arrivalist for all paid media tracking. • If new digital tracking services are not capable of providing full, comprehensive campaign performance reports, continue to utilize H2R Market Research for Ad Effectiveness Studies. • Conduct new 2021-2022 Newport Beach Economic Impact Study & Visitor Profile research for final report to be published in FY2023 to measure total visitor volume and visitor economic impact to Newport Beach. • Explore business intelligence personnel -sharing opportunities with Visit Huntington Beach and Visit Anaheim to reduce expenses and provide greater analytical reports of new data points and metrics. • Provide reports, data and business -intelligence metrics to all business units. community, City Council, City Staff and partners (when applicable). NEWPORTBEACHANDCO.COM 17-28 24 OBJECTIVE 2 LEISURE TRAVELER STRATEGY 1: PERCEPTIVELY PERSONALIZED PERSONAS RE-ENGAGE AND RETARGET MORE THAN 75 MILLION HIGHLY TARGETED POTENTIAL LEISURE TRAVELERS UTILIZING THE SEVEN NEW LEISURE TRAVELER PERSONAS AS A MISSION FILTER TO IDENTIFY AND REACH THE MOST OPTIMAL, QUALIFIED AND LUCRATIVE LEISURE TRAVELERS TO NEWPORT BEACH. Deliver heightened, more meaningful and highly personalized marketing messages, campaigns and content to the right customer with the right message at the right time via the leisure traveler's preferred media channel or outlet. TACTICS • Develop content -marketing strategy for each of the new seven leisure traveler personas. - Beach Goers - Buzz Bound - Culinary Connoisseur - Luxury Traveler - Romance Seekers - Spa Fanatics - Unique Boutiquers • Define and create content, storytelling, videos, blogs and stories for each of the seven new personas. • Create social -media campaigns targeting each of the new leisure personas including sponsored posts, carousels, video pre -roll, etc. • Create media pitches, press releases and press kits around each of the new seven leisure traveler personas. • Explore media outlets, influencers and product -placement partnerships with media and brands that align with each of the seven new leisure personas, e.g. Spa Fanatics partnering with top spa influencers, spa magazines, etc. STRATEGY 2: Significantly expand all owned and earned channel leisure databases (Visit Newport Beach, Dine Newport Beach, Balboa Island and Balboa Village) and synchronize and pair -up missing data with data -appends to all earned media followers with leisure traveler databases and vice versa back to social media followers. TACTICS • Revitalize, re -ignite and re-engage (grow) all leisure traveler email databases (Visit Newport Beach, Dine Newport Beach, Balboa Island and Balboa Village) with new personalized, custom -marketing strategy. • Revitalize, re -ignite and re-engage (grow) all leisure traveler earned media databases from email database appends, organic growth and campaign/promotional growth for (Visit Newport Beach, Dine Newport Beach, Balboa Island and Balboa Village) including all their applicable social -media channels (Facebook, Instagram, YouTube, Pinterest, TikTok, etc.). • Utilize existing Salesforce customer -relationship management (CRM) database to expand customer fields, interest categories and personalized information (whenever possible). • Through a third -party vendor, utilize email data -append strategy to fill in missing leisure traveler content in CRM database, find social media accounts for email database of travelers, and vice versa find email addresses for all social media followers (Visit Newport Beach, Dine Newport Beach, Balboa Island and Balboa Village). FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT 17-29 STRATEGY 3: Splice apart all leisure traveler owned channel databases (Visit Newport Beach, Dine Newport Beach, Balboa Island and Balboa Village) and earned media followers, media lists and travel trade and assign them into one or more of the new leisure traveler audience personas. TACTICS: • Field surveys and sweepstakes to existing email databases to determine leisure travelers' interest categories and assign each traveler into one or more of the new leisure audience personas. • Field surveys, contests and promotions to existing social media followers to determine interest categories and assign each follower into one or more of the new leisure audience personas. • Develop robust micro -marketing strategy to each of the persona audience groups with frequent, customized and highly personalized content for each persona. OBJECTIVE 3 LEISURE TRAVELER STRATEGY 1: DIGITAL DESTINATION STORYTELLING RE -IMAGINE THE NEWPORT BEACH DESTINATION STORY ACROSS ALL OWNED AND EARNED DIGITAL CHANNELS TO INCREASE BRAND AWARENESS, DIGITAL ENGAGEMENT, DESTINATION KNOWLEDGE AND PARTNER CONTENT BY RE-ENGAGING AND REJOICING WITH LEISURE TRAVELERS ACROSS THE DIGITAL -MARKETING SPECTRUM. Re -imagine all owned digital -marketing channels for the post-COVID-19 world with new digital content such as websites, virtual destination tours, new video storytelling, new blogs, social media content and digital storytelling. TACTICS: • Rethink, redesign and re -ignite VisitNewportBeach.com homepage with new digital destination storytelling in mind with simpler navigation, compelling video and story content and easy-to-use and navigate interface. • Create new neighborhood portal with geographic, map interface to digitally enter all neighborhood pages on VisitNewportBeach.com. This will include a highly -stylized map overlay to visually enter and navigate around the destination and into each unique neighborhood. • Re -imagine and re -invent all ten visitor neighborhood pages on VisitNewportBeach.com into new mini destination microsites with robust video, blogs, photos and storytelling on each unique neighborhood. • Ten Visitor Neighborhoods Include: 1. Airport District 2. Back Bay 3. Balboa Island 4. Balboa Peninsula 5. Balboa Village 6. Corona del Mar 7. Fashion Island/Newport Center 8. Lido Marina Village/Cannery Village 9. Mariner's Mile/Westcliff 10. Newport Coast/Crystal Cove NEWPORTBEACHANDCO.COM 17-3 TACTICS- • Create new, customized email templates for each of the new leisure traveler personas. • Continue to create new, compelling destination and partner video content for use across all digital channels: websites, email marketing and social media. • Continue to shoot and edit new destination and partner photography for use across all digital channels: websites, email marketing and social media. • Re-engage Ask Marina artificial -intelligence -based (AI) digital concierge on VisitNewportBeach.com with new chatbot functionality, new features and easier navigation. • Ensure all owned digital channels are ADA -compliant (Americans with Disabilities Act). STRATEGY 2 - Re -imagine all earned media, digital -marketing channels for the post-COVID-19 world with new digital content on all social media channels across all six business units including: Facebook, Instagram, YouTube, Pinterest and TikTok. TACTICS • Continue to create and re -imagine compelling social media content with new digital destination storytelling in mind with new videos, blogs, itineraries, promotions, contests, photography and stories. • Revisit and re -imagine partnerships with key digital influencers to tell the destination brand story across digital media via third -party endorsements and product placements. • Re-engage with earned media across targeted digital media outlets to tell the destination and partner brand story through influential media. STRATEGY 3: Reconnect the destination experience with future brand -defining event and meeting attendees: create compelling video content, maps, online guides, hotel safety guidelines and other attendance - builders via the new Meeting Planner Toolkit in the new meetings website to promote the cleanliness, safety and aspirational Newport Beach lifestyle. TACTICS • Create compelling content, videos, stories, photos and promotions to assist meeting planners with marketing their upcoming event or meeting in Newport Beach to their meeting attendees to both build meeting attendance and encourage meeting attendees to extend the trip into either a pre- or -post leisure vacation. • Promote Newport Beach's signature, brand -defining events through integrated -marketing efforts to reach potential visitors focusing on drive and fly markets based on each event's demographics and audience profile. • Continue growth, attendance and branding of Newport Beach's signature, brand -defining events including: Newport Beach Film Festival, Newport Beach Wine & Food Festival, Newport Beach Christmas Boat Parade, Hoag Classic, Newport to Ensenada Race, Hyatt Regency Newport Beach Summer Concert Series, Hyatt Regency Newport Beach Jazz Festival and other marquee events. • Develop hotel packages tied into brand -defining events to encourage overnight stays in the destination. • Partner with Newport Beach TV for all brand -defining events to share with wider audience with the intent to encourage residents to invite friends and family to Newport Beach. • Develop pre- and- post -meeting hotel packages to encourage meeting attendees to attend their Newport Beach meeting and extend their stay in the destination to turn a business trip into a leisure getaway. 26 FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT 17-31 OBJECTIVE 4 LEISURE TRAVELER STRATEGY 1: BIG, BOLD BRAND -BUILDING INITIATIVES RE-ENGAGE AND REVITALIZE THE NEWPORT BEACH DESTINATION BRAND VIA BIG, BOLD BRAND -BUILDING INITIATIVES TO INCREASE NEWPORT BEACH BRAND AWARENESS, NET PROMOTER SCORES AND OTHER BRAND -TRACKING TOOLS ACROSS ALL TARGETED LEISURE TRAVELER PERSONAS. Increase brand awareness for Newport Beach through big, bold brand -building initiatives on a global scale that take the Newport Beach brand beyond the traditional destination marketing into true destination storytelling. TACTICS: • Research possible top public relations or guerilla marketing agency to assist with development of big, bold brand -building idea, event or initiative. • Explore brand -alignment partnerships with similar brand companies, clothing, retailers, movies, TV shows, events or organizations to help build brand awareness through destination product placement. • Plan and produce big, bold brand event, idea, guerilla marketing initiative or any other big idea to help build the Newport Beach brand on a global scale. • Continue industry -specific brand alignment under destination brand pillars: fashion, interior decor/design and automotive. STRATEGY 2: Increase brand awareness for Newport Beach through seventh annual Newport Beach Film Festival U.K. Honours Event as the kick-off event for British Academy of Film & Television Arts (BAFTA) Awards Weekend in London to align the Newport Beach brand with the U.K. entertainment, film and television industry. TACTICS: • Re -imagine and revisit Seventh Annual Newport Beach Film Festival U.K. Honours event in London on Thursday, February 10, 2022. • Continue long-standing partnership with the Newport Beach Film Festival and Variety Magazine. • Partner with top entertainment public -relations agency in the United Kingdom to assist with event media coverage and celebrity attendance. • Produce consumer -marketing activation in the U.K. market to coincide with Newport Beach Film Festival U.K. Honours Event to further expand the event and destination brand awareness. NEWPORTBEACHANDCO.COM 17-32 OBJECTIVE 5 LEISURE TRAVELER STRATEGY V OBJECTIVE 5: INTERNATIONAL MARKETS & TRAVELERS RE-EVALUATE & RE-ENGAGE PREVIOUS AND POTENTIAL INTERNATIONAL FEEDER MARKETS TO GENERATE $3 MILLION IN VISA CREDIT CARD SPENDING IN NEWPORT BEACH BY PRIORITIZING THE RE-ENTRY AND RE-ENGAGEMENT WITH THOSE INTERNATIONAL MARKETS WITH THE GREATEST PROPENSITY TO TRAVEL TO NEWPORT BEACH GIVEN COVID-19 PANDEMIC RESTRICTIONS, QUARANTINES, VACCINATION LEVELS AND POTENTIAL VISITOR SPENDING. Prioritize, explore and activate re-entry into top international feeder markets to Newport Beach to increase international visitation and visitor spending in the destination. TACTICS: Through VisaVue credit-card tracking reports, visitor profiles, Visit California, Brand USA and U.S. Travel Association research, evaluate top possible international feeder markets into Newport Beach. Probable likely order of re-entry into each international feeder market (in probable re-entry order): 1. United Kingdom & Ireland 2. Canada 3. Middle East (Dubai) 4. China 5. South Korea 6. Japan • Explore new public relations and travel -trade representation firms in those top chosen markets to find the best capable and most equipped agency to generate the most brand awareness and travel to Newport Beach in the post-COVID-19 world. STRATEGY 2: Increase brand awareness for Newport Beach through seventh annual Newport Beach Film Festival U.K. Honours Event as the kick-off event for British Academy of Film & Television Arts (BAFTA) Awards Weekend in London to align the Newport Beach brand with the U.K. entertainment, film and television industry. TACTICS: • Re -imagine and revisit Seventh Annual Newport Beach Film Festival U.K. Honours event in London on Thursday, February 10, 2022. • Continue long-standing partnership with the Newport Beach Film Festival and Variety Magazine. • Partner with top entertainment public relations agency in the United Kingdom to assist with event media coverage and celebrity attendance. • Produce consumer marketing activation in the U.K. market to coincide with Newport Beach Film Festival U.K. Honours Event to further expand the event and destination brand awareness. • Produce possible media and travel -trade events to coincide with Newport Beach Film Festival U.K. Honours event. 28 FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT 17-33 STRATEGY 3: Re-engage and revisit international promotions, tradeshows, sales missions, campaigns, co-operative opportunities and partnerships with California Travel Association, Visit California, U.S. Travel Association and Brand USA to expand and grow the Newport Beach brand and visitation in top international markets. TACTICS: • Partner with Visit California, Brand USA and U.S. Travel Association on international sales missions, tradeshows, co-operative advertising and promotions in key targeted international markets in priority order of re-entry and recovery. • Continue to subscribe to the VisaVue Research via Visit California Co-operative research partnership to better understand international visitation and spending in Newport Beach. • Continue U.S. Travel Association's Chairman's Circle membership to gain access to valuable research reports and lobbying efforts that promote international travel to the United States. • Continue California Travel Association premier sponsorship level to ensure California lobbying efforts continue to promote a healthy and vibrant travel industry within California. CANADA CHINA NEWPORTBEACHANDCO.COM 17-34 JULY AUGUST SEPTEMBER OCTOBER NOVEMBE COVID-19 ECONOMIC RECOVERY MMER LEISURE CAMPAIGN FALL LEISURE CAMPAIGN WINTER LEISURE CAMPAIGN NG LEISURE CAMPAIGN RE-ENTER UK MARKET RE-ENTER CANADA MARKET NEWPORT BEACH FILM FESTIVAL NEWPORT BEACH JAZZ FESTIVAL NEWPORT BEACH WINE AND FOOD FESTIVAL PACIFIC WINE & FOOD CLASSIC ANNUAL MARKETING OUTLOOK RECEPTION NEWPORT BEACH CHRISTMAS BOAT PARADE NEWPORT BEACH RESTAURANT WEEK NEWPORT BEACH FILM FESTIVAL U.K. HONOURS EVENT & U.K. PROMOTION NEWPORT TO ENSENADA YACHT RACE HYATT REGENCY NEWPORT BEACH SUMMER CONCERT SERIES FY2022 LEISURE TRAVELER INITIATIVE CALENDAR NEWPORTBEACHANDCO.COM 17-36 ANNER AUDIENCE BUSINESS PLAN Meeting planners interested in hosting group meetings, a conference or event in Newport Beach's tourism business improvement district (TBID) hotels. 17-38 MEETING PLANNER FUTURE MAP 'F EXPLOIT Sr STRENGTHS MITIGATE WEAKNESSES 1>000� .................................................... LIMITED MEETING AND BALLROOM SPACE AT HOTELS STRONG HOTEL SUPPORT OF TBID & VNB SALES TEAM EXPERIENCED INTERNAL SALES STAFF WITH CONTINUITY/TENURE IN OUR MARKETS REFRESHED/NEW HOTEL PRODUCT STRONG, ROBUST THIRD -PARTY PARTNERSHIPS DESTINATION APPEAL: OUTDOOR EXPERIENCES, NEWPORT HARBOR, FRESH AIR AND SUN, AL FRESCO SPACES AT HOTELS AND OTHER VENUES BOUTIQUE -DESTINATION TREND, EVEN MORE SO POST PANDEMIC SMALL- TO MEDIUM-SIZED GROUP/ MEETINGS COMPATIBILITY MILD -YEAR-ROUND WEATHER AIRPORT ACCESSIBILITY REDUCED GROUP ROOM INVENTORY NO CONFERENCE CENTER NO CENTRAL, WALKABLE NIGHTLIFE DIRECTLY ACCESSIBLE FROM MEETING SPACE LIMITED ORANGE COUNTY AIR ACCESS TO SOME MAJOR MARKETS LACK OF VARIETY OF HOTEL PROPERTIES: 2 HOTEL BRANDS IN THE DESTINATION (MARRIOTT/HYATT) NO TBID FIVE-STAR RESORT PROPERTIES OR BEACHFRONT HOTELS LIMITED NUMBER OF UNIQUE, OFF-SITE VENUES FOR LARGE GROUPS 34 FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT 17-39 PREPARE FOR CONTINGENCIES OR THREATS .................................................. LACK OF CLARITY OF ID01011 OMONITOR OPPORTUNITIES ............................................................ TECHNOLOGY/HYBRID MEETING CAPABILITIES EXPANSION OF CORPORATE END-USERS IN SOUTHERN CALIFORNIA REGION ONBOARDING AND CONTINUED ENGAGEMENT WITH NEW AND EXISTING TBID PARTNERS INCREASED CUSTOMER AWARENESS OF DESTINATION LOCATION FOR MEETINGS EXPANDED AIRLIFT TO NYC BROADENING EXPOSURE FOR CREATING INTEREST FOR OUR HIGH-END HOTELS (NOW INCLUDING NEWPORT BEACH MARRIOTT HOTEL & SPA) AMPLIFIED GROUP MARKETING DEEP -DIVE, DATA ANALYSIS OF CURRENT DATABASE FOR EMERGING TRENDS AND SALES RECOVERY PLAN EXPANSION OF TBID PARAMETERS FOR DELIVERABLES BROADER KPI'S FOR GROUP SALES TEAM GOVERNMENTAL GUIDELINES FOR MEETING PARAMETERS IN CALIFORNIA PERTAINING TO HEALTH MANDATES, LOCKDOWNS AND PANDEMIC TIER LEVELS UNCERTAINTY OF TIMING OF PANDEMIC RESOLUTION AND HOW PUBLIC DETERMINES SAFETY OF TRAVEL/MEETINGS IMPACT OF UNVACCINATED POPULATION LASTING CONSEQUENCES OF MEETING/EVENTS FROM BEING VIRTUAL FOR A YEAR (VIABLE ALTERNATIVES TO LIVE MEETINGS) SMALLER AND FEWER MEETINGS REDUCED REVENUE FROM HOTEL CLOSURES SOURCE PLATFORMS MAKE IT EASY TO CIRCUMVENT DMO NATIONAL POLITICAL INSTABILITY ECONOMIC UNCERTAINTY N EW PORTBEACHAN DCO.COM 17-40 MEETINGS PLANNER EXECUTIVE SUMMARY Newport Beach & Company and Visit Newport Beach, Inc. jointly present this fully integrated group sales, meeting services, marketing, digital marketing, public relations and communications plan to attract meetings and conferences and subsequent economic impact to Newport Beach and its Tourism Business Improvement District (TBID) hotel partners for the 2022 fiscal year. Newport Beach & Company and Visit Newport Beach, Inc. worked as a unified, customer -focused, cross -functional team to develop this integrated business plan to meet or exceed the $20 million in economic impact goal. The challenges set by the lingering effects of the COVID-19 pandemic and its dramatic, negative impact on live, in-person meetings and conferences have completely changed the meetings, conferences and convention landscape in our industry— perhaps for the long-term. The transition to hybrid meetings (both virtual and live, in-person meetings) may be here to stay. Videoconferencing and the new era of Zoom meetings—also may have permanently changed the way groups, companies and associations conduct future meetings or large gatherings of employees, attendees or stakeholders. In addition, the changing local hospitality landscape with TBID hotel closures and renovations has posed both challenges and opportunities as the Visit Newport Beach, Inc. Group Sales & Marketing Team sells and promotes meetings in Newport Beach. Lastly, the evergreen opportunities of the increasing role of intermediaries in the meeting -planning process, combined with the constant struggle to always establish the value of partnership with a DMO, continue to be a balancing act in third -party partnerships, marketing and messaging the value proposition of working with Visit Newport Beach, Inc. Group Sales Team. With the internal mantra, "Re-engage. Revisit. Rejoice," Newport Beach & Company and Visit Newport Beach, Inc. plan to re- engage with meeting planners and revisit new ways to accomplish goals and achieve success. By revisiting our approach to a team goal and KPIs vs. individual sales director goals, we are rejoicing in working back together again as one team united to take the Newport Beach brand as a premier meetings destination to even greater heights. In February and March 2020, meetings, conferences and conventions were the first to start to cancel, and 2021 will not likely see large meetings or conferences return anywhere near the record they were in business travel spending in 2019. However, smaller, regional meetings will begin to meet again in Newport Beach in late 2021 and starting stronger in first quarter of 2022. 36 FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT 17-41 Visit Newport Beach, Inc. (TB ID) Group Sales & Marketing Team is uniquely positioned to capitalize on this meetings recovery effort due to the strength and power of the TBID budget, its hotel partners and the Visit Newport Beach Group Sales & Marketing Team. The cross -functional, sales and marketing teams developed this integrated business plan for the meeting -planner customer segment with a management -by -objectives approach where objectives are quantifiable goals, strategies form the strategic approaches to reaching the benchmark objectives, and tactics are projects that support overarching strategies. PREDICTION WHEN MEETINGS BUSINESS WILL RETURN TO NORMAL IN U.S. 60% 50.4% 50% 40% 30% 20% 13.3% 6.8% 9.1% . 10% SOMETIME IN . NEVER --IT IS 2023 ■ UNLIKELY TO 0% RETURN TO NORMAL FIRST HALF OF SECOND HALF SOMETIME IN 2021 OF 2021 2022 14.2% 6.8% 5.9% . SOMETIME IN SOMETIME NEVER --IT IS 2023 AFTER 2023 UNLIKELY TO RETURN TO NORMAL SOURCE: DESTINATION ANALYSTS, THE CVB & FUTURE OF THE MEETINGS INDUSTRY, JANUARY 2021 WHEN ATTENDEES EXPECT TO FEEL COMFORTABLE ATTENDING LIVE EVENTS 70% 63.9% 65.0% 60%51.3% 56.0% ■ 50% 0 42.1% 43.6% 43.2% 4o% 34.0% 36.3% 38.8 /° 30% 20% 10% 0% JAN 2021 FEB 2021 MAR APR 2021 MAY JUN 2021 JUL 2021 AUG SEP 2021 LATER IN 2021 2021 2021 2021 SOURCE: DESTINATION ANALYSTS, THE CVB & FUTURE OF THE MEETINGS INDUSTRY, JANUARY 2021 NEWPORTBEAC HANDCO.COM 17-42 MEETING PLANNER BUSINESS OBJECTIVES OBJECTIVE RE-ENGAGE & REVITALIZE MEETINGS IN NEWPORT BEACH GENERATE $20 MILLION OR MORE IN ROUP/MEETINGS-RELATED ECONOMIC IMPACT TO NEWPORT BEACH TBID HOTEL PARTNERS AND THE LOCAL NEWPORT BEACH ECONOMY. $$ FISCAL -YEAR 264_'L�ATION BUSINESS PLAN SUPPLEMENT 17-43 STRATEGY'll PROACTIVE SALES BLITZES SALES CAMPAIGNS TO CLIENTS IN SOUTHERN CALIFORNIA WITH QUALIFIED BUSINESS WHO ARE RE -AWAKENING MEETINGS WITHIN DRIVE MARKETS FOR ATTENDEES. STRATEGY 2 REINFORCE VNB UNIQUE SELLING PROPOSITION VISIT NEWPORT BEACH DELIVERS MORE RESOURCES, TALENT AND FOCUS TO THE SMALL MEETINGS MARKET THAN ANY OTHER DESTINATION. THIS USP IS REINFORCED THROUGH ALL SALES AND MARKETING CHANNELS, INDUSTRY TRADESHOWS AND CLIENT INTERACTIONS. STRATEGY 3 EFFECTIVE TARGET MARKETING DELIVER HIGHLY -TARGETED, REFINED MESSAGING VIA AUTOMATED EMAIL MARKETING, PROVIDING VALUE AND INSPIRATION TO KEY CONTACTS. STRATEGY 4 FAMILIARIZATION TRIP SERIES FOR TARGETED MARKET SEGMENTS EDUCATE AND INSPIRE SMALL YET HIGHLY -QUALIFIED CLIENT GROUPS FOR THEIR BUSINESS. NEWPORTBEACHANDCO.COM 17-44 OBJECTIVE MEETING PLANNEI RE-ENGAGE & REVITALIZE MEETINGS IN NEWPORT BEACH Generate $20 million or more in Group/Meetings-related economic impact to Newport Beach TBID Hotel Partners and the local Newport Beach economy. STRATEGY 1: PROArDTIVE SALES BLITZES Sales Campaigns to clients in Southern California with qualified business who are re -awakening meetings within drive markets for attendees. TACTICS: • Establish dedicated local planner incentives/promotions to fuel interest in partnership. • Develop blitz calendar highlighting key opportunities to connect with local planners (summer need period, seasonal promotions, local tradeshows, etc.). • Refine local planner audiences (corporate, association, FICP, Pharma, education, third party, fashion/beauty). • Create templated, branded collateral: info sheets, pitch decks, customer stories/testimonials, pre -blitz nurture email campaigns, sales email templates, post -blitz drip email campaigns, digital ads, social posts. • Mine data from Cvent and CRM to leverage emerging trends and opportunities. • Plana quarterly events calendar to guide messaging, timing and placements. AN OFFER TO ELEVATE OUR PLANNERS or 01.000 WAYS TO PROMOTE ® _aw 40 FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT 17-45 STRATEGY 2: REINFORCE VNB UNIQUE SELLING PROPOSITION Visit Newport Beach delivers more resources, talent and focus to the small meetings market than any other destination. This USP is reinforced through all sales and marketing channels, industry tradeshows and client interactions. TACTICS • Incentivize planners to book meetings this year with a competitively generous RFP offer • Re-engage with industry publications to determine desirable content. • Leverage the newly -redesigned VNB digital presence: Dynamic website and social channels, and curated resources designed to inspire, inform and support today's planner. • Reimagine sales team structure along with growth in team numbers and support consistency in travel/tradeshow presence with branded booth, compelling offers, and strong reinforcement of our commitment to meet planners "where they are." NEWPORTBEACHANDCO.COM 17-46 STRATEGY 3: EFFECTIVE TARGET MARKETING Deliver highly -targeted, refined messaging via automated email marketing, providing value and inspiration to key contacts. TACTICS.- 0 ACTICS: • Strategize account -based marketing tactics focused on active engagements from key accounts and market segments. • Establish planner communication journeys to address funnel stages, tradeshow activity, and special event initiatives. • Create personalized interest and industry -focused content. STATE OF THE DESTINATIONS: -inre CVbreps SEPTEMBER 29 2:00 PM EST WE INVITE YOJTO JOIN US NEKITUESDAY FOR AN INSIDER'S lOOK1NTO lVE POPJLAR DESTINATIONS. JOIN NCCV6 RLPS'JR I I IIS !NICU= SERILS Of PRESENTATIONS AND LIVE DISC, SSION, FAC LITATED 6Y NORTHEAST CVB REPS PRESDEN CH2ISTOPHER iRISiIN. 42 FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT 17-47 STRATEGY 4: FAMILIARIZATION TRIP SERIES FOR TARGETED MARKET SEGMENTS Educate and inspire small yet highly -qualified client groups for their business. TACTICS: • Excite planners in the luxury/incentive market to reward their groups with high -touch, exclusive experiences that are unique to Newport Beach. • Inspire corporate planners to envision their group inflexible, coastal -chic properties with attendance -driving experiences. • Engage third -party planners with both high-end and immersive experiences to inspire group solutions. NEWPORTBEACHANDCO.COM 17-48 JULY AUGUST SEPTEMBER OCTOBER NOVEMB CONFERENCE DIRECT ANNUAL PARTNER MEETING FINANCIAL & INSURANCE CONFERENCE PLANNERS ANNUAL NEWSNET STRATEGIC PARTNER PROFILE IMEX PRE-AND-POST SHOW CONTENT AND COMMUNICATIONS CALSAE SEASONAL SPECTACULAR PRE-AND-POST SHOW COMMUNICATIONS SITE SOCAL CONFERENCEDIRECT FORUM ASSOCIATE FOLLOW UP MAILER DESTINATION SHOWCASE PRE-AND-POST SHOW COMMUNICATIONS MEETING INDUSTRY COUNCIL PRE-AND-POST SHOW COMMUNICATIONS HELMSBRISCOE ANNUAL MEETING PRE-AND-POST SHOW CONTENT FY2022 MEETING PLANNER INITIATIVE CALENDAR NEWPORTBEACHANDCO.COM 17-50 JULY AUGUST SEPTEMBER OCTOBER NOVEMB VNB GROUP NEWSLETTER 1,000 REASONS TO PARTNER WITH VNB (SPRING/SUMMER PLANNER PROMO) HOLIDAY CLIENT EVENT 3RD PARTY CLIENT FAM PRE-AND-POST EVENT COM MUN FALL/WINTER BOOKING PROMO INCENTIVE CLIENT FAM PRE-AND-POST EVENT COMMUNICATIONS (MARCH) PRE-AND-POST EVENT COMMUNICATIONS (APRIL) SPRING/SUMMER PLANNER PROMOTION FY2022 MEETING PLANNER INITIATIVE CALENDAR NEWPORTBEACHANDCO.COM 17-52 m Al' JA -7. -7-7-77�`= Z ZE- 50 LOCAL COMMUNITY PARTNERS AUDIENCE BUSINESS PLAN 66 )RGANIZATION AUDIENCE BUSINESS PLAN 4r- Pon �Mb `-`-��- � - = ���� -;� - _ _moi=- �-_ _ - - • � _ 775 LOCA L COMMUNITY PARTNERS AUDIENCE BUSINESS PLAN Members and leaders of the Newport Beach community including local residents, partners, City of Newport Beach, hotels, business improvement districts (BIDs), merchant associations, regional destination marketing organizations (DMOs), Orange County Visitors Association (OCVA), Orange County government leaders and influential community stakeholders. MITIGATE LOCAL WEAKNESSES W ................................................... COMMUNITY ANTI -DEVELOPMENT, ANTI -TOURISM, C ANTI -AIRPORT SENTIMENT PA RT N C R S LACK OF SPORTS AND RECREATION FUTURE FACILITIES LIMITED CONVENTION, MEETINGS, EXHIBIT MAP AND EVENT FACILITIES/VENUES LIMITED OPPORTUNITY FOR NEW CITY TOURISM DEVELOPMENTS AIR ACCESS TO SOME MAJOR MARKETS LIMITED MOBILITY AND ACCESS (LOCAL TRANSPORTATION WITHIN DESTINATION) EXPLOIT LIMITED CITY-WIDE COMMUNICATIONS AND INTERNET INFRASTRUCTURE IF ............................................ STRENGTHS STRONG, CREDIBLE CITY AND DMO REPUTATION STRONG TOURISM PRODUCT: AIRPORTS, - CITY STAFF, CIVIC LEADERS, TRAIN, RESTAURANTS, RETAIL, HOTELS, CIVIC ORGANIZATIONS HARBOR, BEACHES, WEATHER, NEARBY ATTRACTIONS - VISIT NEWPORT BEACH INC., NEWPORT BEACH & COMPANY DESTINATION MARKETING ORGANIZATION OF THE FUTURE NEW BRAND IDENTITY FOR CORPORATE BRAND AND UNITS POSITIVE ECONOMIC IMPACT CLOSE-KNIT HOSPITALITY, TOURISM AND CIVIC LEADERSHIP ENGAGED LOCAL MEDIA ACCESS TO VACCINES AND MEDICAL CARE DIVERSE NEIGHBORHOODS DIVERSE HOTEL/ACCOMMODATIONS PRODUCT (FIVE-STAR RESORT TO SMALL INNS AND VACATION RENTALS) DESTINATION APPEAL FOR STRONG RECOVERY (ABUNDANT NATURAL OUTDOOR SPACES AND OFFERINGS) HOSPITALITY FORWARD FIRST RESPONDERS (POLICE, FIRE, LIFEGUARD) UNITED BRAND MESSAGING UNDER ONE COMMUNITY -MARKETING ORGANIZATION ABILITY TO REACH LOCAL RESIDENTS VIA NEWPORT BEACH TV (GOVERNMENT -ACCESS TV CHANNEL) STRONG RESTAURANT COMMUNITY STRONG RELATIONSHIPS WITH KEY ASSOCIATIONS BRAND -DEFINING EVENTS UNITED UNDER COHESIVE MARKETING, MESSAGING, STRONG STATE TOURISM BOARD SPONSORSHIP, PR AND MEDIA BUYING VIA CELEBRATE NEWPORT BEACH 52 FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT 17-57 STANDARD -DEFINITION VS HIGH- DEFINITION GOVERNMENT -ACCESS TV CHANNEL WORKFORCE (COMPETITIVE SALARIES AND LIMITED STAFF) NO CENTRAL, WALKABLE NIGHTLIFE LIMITED OCEANFRONT/BEACHFRONT HOTEL PRODUCT LIMITED NUMBER OF UNIQUE OFFSITE VENUES FOR LARGE GROUPS PERCEPTION OF BEING TOO EXPENSIVE PERCEPTION OF BEING UNWELCOMING LACK OF AWARENESS OF DIFFERENCES BETWEEN ORANGE COUNTY BEACH CITIES LACK OF NATIONAL/INTERNATIONAL AWARENESS (TIFFANY JEWEL BOX SYNDROME) MONITOR OPPORTUNITIES TOURISM PRODUCT IDEAL FOR TRAVEL INDUSTRY RECOVERY T EMERGING NEW TBID PARTNERS NEW ECONOMIC TOOLS AND RESOURCES FOR PARTNERS EXPANDED CORPORATE COMMUNICATIONS POSITIVE POSITION FOR ECONOMIC RECOVERY MOBILIZING COMMUNITY AND COUNTY TO SUPPORT LOCAL RESOURCE TO PARTNERS AND COMMUNITY FOR AD HOC CONSULTING NIMBLE AND INNOVATIVE INTERNAL TEAM EXPANDED CREATIVE FREELANCE SUPPORT PREPARE FOR CONTINGENCIES OR THREATS MUTATING COVID-19 VIRUS STRAINS CAUSING MORE "WAVES" STAY-AT-HOME ORDERS DUE TO PANDEMIC PANDEMIC -INDUCED CLOSURES TO ECONOMY/BUSINESSES ECONOMIC INSTABILITY WIDE -SPREAD UNEMPLOYMENT/JOB LOSS SOCIAL INSTABILITY PROTESTS TRAVEL RESTRICTIONS LIMITED CAPACITIES AT ATTRACTIONS AND TOURISM/HOSPITALITY BUSINESSES MAJOR ATTRACTIONS OPEN TO IN-STATE ONLY LIMITED CAPACITIES AT LOCAL ATTRACTIONS CONSUMER/TRAVEL SENTIMENT TOWARD TRAVEL DESTINATION INCIDENTS GOING VIRAL ON SOCIAL MEDIA CAUSING NEGATIVE SENTIMENT/CANCELING" TOWARD DESTINATION OR LOCAL BUSINESSES COMPETITIVE RECOVERY MARKETPLACE I.E. LOCAL AND STATE DMO'S POURING AD AND MARKETING DOLLARS IN-STATE CALIFORNIA "FIRE SEASON" NATURAL/WEATHER-RELATED DISASTERS SUPPLY -CHAIN CRISIS IMPACTING TOURISM - RELATED RESOURCES NEWPORTBEACHANDCO.COM 17-58 LOCAL COMMUNITY PARTNERS EXECUTIVE SUMMARY This integrated marketing, communications and advocacy plan outlines how Newport Beach & Company will build on 2020 and 2021's efforts to further aid in economic recovery for Local Community Partners, champion tourism, hospitality and meetings and continue to bring creative and results -driven programs, tools and assets to the City of Newport Beach in fiscal -year 2022. During 2020's turbulent year, Newport Beach & Company spearheaded a number of vital community recovery campaigns and provided up-to-the-minute COVID-19 resources for partners and travelers. In addition, Newport Beach & Company provided broader assistance to Local Community Partners more than ever before, further cementing itself as an integral part of the destination's organizational civic make-up. Ad hoc counsel, marketing and advocacy were requested by a variety of organizations in the City during the past year, and Newport Beach & Company delivered a variety of programming in record time. Newport Beach & Company will sow the seeds from the past fiscal year and further grow community consulting programming and economic recovery. In addition, Newport Beach & Company will continue to strongly advocate for tourism, hospitality, meetings and destination marketing into the next fiscal year. These vital industries positively impact all corners of the destination by pouring millions of dollars into the City of Newport Beach's general fund, create jobs and keep small businesses open. As optimism in reopening grows from the pandemic, Newport Beach & Company will continue to partner with civic groups, amplify tourism messaging and mobilize the community to support local. Newport Beach & Company will further bolster itself as the "glue" that unites the community from a marketing, economic and hospitality standpoint. Newport Beach & Company connects the dots and is a resource for a variety of key stakeholders: local residents, partners, City of Newport Beach, City Council, civic organizations, hotels, businesses, merchant associations, regional destination -marketing and other regional/local influential community organizations. 54 FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT 17-59 The following plan encompasses the following five initiatives to generate awareness and continue to provide value to the City of Newport Beach and key stakeholders: 1. Commanding Corporate Communications 2. Advocate for Tourism, Hospitality and Meetings 3. Community Consultants 4. Partnership Education & Networking 5. Build Back Better Business Units Through its unique business -unit structure, Newport Beach & Company serves as a community -marketing agency providing diversified marketing, group sales, sponsorship, communications, media relations, event planning and brand -building services to drive economic development for the City of Newport Beach, Tourism Business Improvement District (TBID) hotel partners, Newport Beach Restaurant Association, Balboa Village Merchants Association, Balboa Island Marketing, Inc. and Newport Beach TV. Newport Beach & Company also serves as a community -marketing agency and provides marketing, public relations, sponsorship, event planning and brand -development services to increase attendance, enhance the customer experience and promote the overall Newport Beach brand for signature events in Newport Beach. Newport Beach signature, brand -defining events include but may not be limited to: Newport Beach Christmas Boat Parade, Newport Beach Film Festival, Newport Beach Wine & Food Festival, Newport Beach Restaurant Week, Hyatt Regency Newport Beach Jazz Festival, Hyatt Regency Newport Beach Summer Concert Series and Newport to Ensenada International Yacht Race. Newport Beach & Company plans to engage Local Community Partners in new, innovative ways to keep the COVID-19 Pandemic recovery momentum going, promote the value of tourism, and to bring the Newport Beach & Company brand to even greater heights. The cross -functional planning team developed this integrated business plan for the local community customer segment with a management -by -objectives approach where objectives are quantifiable goals, strategies form the strategic approaches to reaching the benchmark objectives, and tactics are the budgeted projects that support overarching strategies. NEWPORTBEACHANDCO.COM 17-60 LOCAL COMMUNITY PARTNERS BUSINESS OBJECTIVES OBJECTIVE 1 COMMANDING CORPORATE COMMUNICATIONS CREATE, EXECUTE OR PRODUCE MORE THAN 500 HIGHLY - INFLUENTIAL MARKETING COMMUNICATIONS STORIES, SPEAKING ENGAGEMENTS, CASE STUDIES AND INCREASED CORPORATE MESSAGING VIA MEDIA RELATIONS, SOCIAL MEDIA POSTS AND COMMUNITY -ORGANIZATION GROUPS TO ELEVATE THE COMPANY BRAND AND RECOGNITION IN THE COMMUNITY. OBJECTIVE 2 ADVOCATE FOR THE TOURISM, RESTAURANT, HOSPITALITY AND MEETINGS INDUSTRIES '100"CONTINUE ROBUST EFFORTS TO TELL THE STORY AND VALUE OF TOURISM, RESTAURANT, HOSPITALITY AND MEETING INDUSTRIES TO LOCAL AND REGIONAL AUDIENCES AND STAKEHOLDERS AS WELL AS VIA STATE, NATIONAL AND INTERNATIONAL TOURISM TRADE ORGANIZATIONS. INATION BUSINESS PLAN SUPPLEMENT 17-61 OBJECTIVE 3 COMMUNITY CONSULTANTS CONTINUE NEW ROLE AS COMMUNITY CONSULTANTS FOR PARTNERS, HOTELS, RESTAURANTS AND LOCAL CIVIC ORGANIZATIONS TO ELEVATE THEIR BUSINESSES AND DRIVE ECONOMIC GROWTH. OBJECTIVE 4 PARTNERSHIP EDUCATION & NETWORKING DEVELOP EVENTS, COMMUNICATIONS, EDUCATIONAL WEBINARS AND NETWORKING OPPORTUNITIES FOR OUR PARTNERS TO EXCHANGE IDEAS AND LEARN FROM EACH OTHER AND EXPERTS. OBJECTIVE 5 BUILD BACK BETTER BUSINESS UNITS CONTINUE TO EVOLVE AND GROW THE UNIQUE, ENTREPRENEURIAL NEWPORT BEACH & COMPANY BUSINESS UNIT MODEL. MICRO -AUDIENCES NEWPORT BEACH CITY COUNCIL CITY/STAFF DEPARTMENTS CIVIC ORGANIZATIONS 101*]►C]:Z07ak169 ORANGE COUNTY BOARD OF SUPERVISORS ORANGE COUNTY STAFF/DEPARTMENTS LOCAL RESIDENTS LOCAL BUSINESSES/PARTNERS TOURISM BUSINESS IMPROVEMENT DISTRICT HOTELS CIVIC ORGANIZATIONS LOCAL/REGIONAL MEDIA NEWPORT BEACH RESTAURANT ASSOCIATION MERCHANT ASSOCIATIONS REGIONAL, STATE AND NATIONAL DESTINATION MARKETING ORGANIZATIONS REGIONAL ATTRACTIONS ORANGE COUNTY BUSINESS COUNCIL JOHN WAYNE AIRPORT LOS ANGELES INTERNATIONAL AIRPORT THE TOLL ROADS ORANGE COUNTY TRANSPORTATION AUTHORITY TOURISM, HOSPITALITY AND MEETINGS ASSOCIATIONS 17-62 OBJECTIVE 1 LOCAL COMMUNITY PARTNERS STRATEGY 1: COMMANDING CORPORATE COMMUNICATIONS CREATE, EXECUTE OR PRODUCE MORE THAN 500 HIGHLY- INFLUENTIAL IGHLYINFLUENTIAL MARKETING COMMUNICATIONS STORIES, SPEAKING ENGAGEMENTS, CASE STUDIES AND INCREASED CORPORATE MESSAGING VIA MEDIA RELATIONS, SOCIAL MEDIA POSTS AND COMMUNITY -ORGANIZATION GROUPS TO ELEVATE THE COMPANY BRAND AND RECOGNITION IN THE COMMUNITY. Create and produce more than 450 blogs, stories, dashboards, research reports, guest columns, case studies and social media posts in local, regional and national trade and consumer media, social media channels, digital media and websites about the power of the tourism, restaurant, hospitality industries as well as the hard work and results of Newport Beach & Company and Visit Newport Beach, Inc. TACTICS: • Build identity of Newport Beach & Company and all business units and the work, success and results of the company and each business unit. • Assemble a taskforce to create structure and tools to clarify the application and communication of corporate brand and business units. • Merchandise Newport Beach & Company and Visit Newport Beach, Inc. marketing and sales wins, results, awards and achievements. • Establish processes for 13213 distribution of work, e.g. post -campaign case studies and circulate accordingly. • Post company, destination and partner achievements and results on corporate Newport Beach & Company Linkedln account • Form association and/or business -unit Linkedln accounts for Dine Newport Beach/Newport Beach Restaurant Association, Enterprise Newport Beach, Celebrate Newport Beach and Video Newport Beach. • Continue weekly CEO Guest Column in StuNewsNewport. • Continue weekly COVID-19 Economic Recovery Dashboard to present a variety of economic and recovery data for community. • Identify thought -leadership opportunities for case studies, blog posts and guest columns. • Apply for industry and association awards. • Continue to achieve industry accreditations and certifications, e.g. Destination Marketing Accreditation Program (DMAP), etc. 58 FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT 17-63 STRATEGY 2: Conduct more than 50 guest speaking, teaching, presentations and formal speeches at local, regional, state, national and international events, certification classes and industry tradeshows about the unique Newport Beach & Company business model as well as the hard work and results of Newport Beach & Company and Visit Newport Beach, Inc. TACTICS: • Identify thought -leadership opportunities and speaking opportunities. • Continue teaching international destination -management certification courses in Destination Leadership, Destination Sales & Marketing and Destination Positioning & Branding in Destination International's Certified Destination Management Executive (CDME) Certification Program. • Continue to push new executive leadership to attain industry certifications such as CMP, CITP, HMCC, CDME, CTA, APR, etc. • Continue to speak at local civic events, Commodores Club, Seven Seas, Speak Up Newport, Wake Up Newport, Chamber events, etc. • Develop case studies, convention sessions, and keynote speeches to present at industry events, conferences, summits and conventions. • Support civic events with marketing and communications support such as the Annual Fire & Lifeguard Dinner, Police Appreciation Breakfast, Citizen of the Year Dinner, Mayor's Dinner/ Reception and Christmas Boat Parade Auction & Dinner. OBJECTIVE 2 LOCAL COMMUNITY PARTNERS STRATEGY 1: ADVOCATE FOR THE TOURISM, RESTAURANT, HOSPITALITY AND MEETINGS INDUSTRIES CONTINUE ROBUST EFFORTS TO TELL THE STORY AND VALUE OF TOURISM, RESTAURANT, HOSPITALITY AND MEETING INDUSTRIES TO LOCAL AND REGIONAL AUDIENCES AND STAKEHOLDERS AS WELL AS VIA STATE, NATIONAL AND INTERNATIONAL TOURISM TRADE ORGANIZATIONS. Form positive, long-lasting and deep professional relationships with regional, state, national and international tourism, travel, restaurant, hospitality and meetings industries. TACTICS: • Maintain engagement at the local, state, national and global level coming together to further the tourism and meetings industry agenda including premier -level membership in the following trade associations: - California Travel Association & CalTravel PAC - Visit California - Brand USA - California Restaurant Association - Orange County Restaurant Association - U.S. Travel Association - Destinations International & Destinations International Foundation - Travel & Tourism Research Association - Meeting Planners International (MPI) - PCMA - American Society of Association Executives (ASAE) NEWPORTBEACHANDCO.COM 17-64 5 STRATEGY 2: Create and produce corporate communications, research reports and local marketing campaigns to promote the value of tourism, hospitality, restaurant and meetings industries to local audiences including residents, civic leaders, county leaders and city staff. TACTICS: • Engage industry partners for marketing opportunities. • Continue to engage local media and tell hospitality and meetings stories. • Assemble regional DMO leadership for marketing and advocacy pushes. • Merchandise Newport Beach & Company marketing and sales efforts in real numbers to show positive incremental impact on destination. • Utilize data, research and economic figures to demonstrate tourism and meetings positive impact on destination at -large. • Amplify internal communication channels. • Spearhead community recovery campaigns. • Provide recovery resources for partners. • Provide COVID-19 up-to-the-minute resources and education to visitors. • Provide marketing toolkits for partners for campaigns. • Create local marketing ad campaigns to showcase the value of tourism to residents and civic leaders. STRATEGY 3: Continue to serve and speak at local, community boards of directors and peer civic organizations. TACTICS: • Internal staff to serve on relevant local boards, e.g., Newport Beach Chamber of Commerce, Commodores Club, Seven Seas, etc. OBJECTIVE 3 LOCAL COMMUNITY PARTNERS STRATEGY 1: COMMUNITY CONSULTANTS CONTINUE NEW ROLE AS COMMUNITY CONSULTANTS FOR PARTNERS, HOTELS, RESTAURANTS AND LOCAL CIVIC ORGANIZATIONS TO ELEVATE THEIR BUSINESSES AND DRIVE ECONOMIC GROWTH. Serve as marketing, branding and sales consultants to local businesses, hotels, restaurants and civic organizations to enhance results, produce and sales/marketing efforts. TACTICS: Build on Newport Beach & Company's new role in 2020 as community consultant for various ad hoc marketing and sales needs for local businesses, civic organizations, neighborhood associations, restaurant association, and City of Newport Beach. Position organization as the community "go -to" for various needs, e.g., marketing plans, communication strategy, branding, marketing, crisis communications, brainstorming, etc. 60 FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT 17-65 • Maximize opportunities for win -wins for Newport Beach & Company and partners, e.g., new "Stay + Play" video series ad campaign. • Create a more tailored and enhanced partnership model as needed. • Advise hotel sales and marketing leaders on property -specific sales and marketing plans. • Provide graphic design, art direction and video -production services to local businesses and partners. • Consult and assist with renovation and new vision for Newport Beach Marriott Hotel & Spa including consultations with ownership group, hotel management team, PR agency search, branding and design agency as well as design and video -production services to assist with renovation launch and marketing: - Dine Newport Beach Restaurant Gift Cards - Dine Newport Beach Restaurant Rack Cards - COVID-19 safety signage - Launch event videos, photography and event production services - Hotel Employee Recognition Provide economic resources and marketing toolkits for partners and community. OBJECTIVE 4 LOCAL COMMUNITY PARTNERS STRATEGY 1: PARTNERSHIP EDUCATION & NETWORKING DEVELOP EVENTS, COMMUNICATIONS, EDUCATIONAL WEBINARS AND NETWORKING OPPORTUNITIES FOR OUR PARTNERS TO EXCHANGE IDEAS AND LEARN FROM EACH OTHER AND EXPERTS. Create and host Newport Beach & Company networking and educational events for all partners, businesses, civic leaders and civic organizations to showcase the hard work and results of the company and tourism/hospitality industry partners as well as provide educational insights to the local Newport Beach economy. TACTICS: • Provide "reunion" opportunities for Newport Beach hospitality industry. • With limited budgets, staff and resources, Newport Beach & Company will create quarterly educational webinars or in-person training sessions for hospitality partners and colleagues. • Bring back Newport Beach & Company marquee corporate events: Annual Marketing Outlook Reception (October 14, 2021), Annual Holiday Partner Event (December 2021), etc. • Re-engage Rosalind Williams Service Excellence Award and Dennis O'Neil Partner in Progress Award with possible focused recognition to a front-line employee and civic leader for strong performance during the COVID-19 pandemic. • Explore creating Visitor Choice Awards recognizing top partners and businesses in multiple categories as a way to spotlight and encourage exemplary service and destination -brand standards. 17-66 STRATEGY 2: Create and distribute educational opportunities, presentations, case studies and research reports to local civic leaders, businesses and City of Newport Beach. TACTICS: • Continue to create and distribute weekly COVID-19 Economic Recovery Dashboard. • Explore new Zartico software system (Destination Operating System) as a new total destination - management dashboard for all economic indicators. • Through new Zartico software system, provide City Council and City of Newport Beach staff with real-time data on visitor flow, volume and bottlenecks in the destination to assist with local zoning for short-term rentals, traffic congestion, crime reduction and noise/nuisance reduction efforts. • Conduct Newport Beach Economic Impact Study & Visitor Profile to measure true visitor volume, economic impact, visitor spending and visitor demographic profile information to local civic leaders and partners. • Assist City Council and City of Newport Beach Staff with customized tourism or COVID-19 related presentations, health safety programs (S.H.I.P. Shape Initiative), etc. STRATEGY 3: Develop, update and present semi-annual Hospitality Training Program seminars, classes and training videos to educate local partners, city staff, Newport Beach Police Department staff, and Newport Beach Fire & Lifeguards. TACTICS: • Update Hospitality Training Program curriculum with new COVID-19 safety protocols and new destination brand identity system. • Partner with Newport Beach Police Department and Newport Beach Fire & Lifeguard Department to produce customized, hospitality training videos, collateral and information. • Provide visitor collateral to new Ambassador Division within Newport Beach Police Department. • Present educational webinars or in-person seminars to local businesses and city departments to educate them on best -in -class hospitality service, destination product knowledge, as well as destination brand positioning information. SERVE. ACCOMODATE. INSPIRE. LEAD. HOSPITALITY TRAINING PROGRAM 62 FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT 17-67 OBJECTIVE 5 LOCAL COMMUNITY PARTNERS STRATEGY 1: BUILD BACK BETTER BUSINESS UNITS CONTINUE TO EVOLVE AND GROW THE UNIQUE, ENTREPRENEURIAL NEWPORT BEACH & COMPANY BUSINESS -UNIT MODEL. Re-engage and revisit all Newport Beach & Company business units: Visit Newport Beach, Inc. TOT and TBID Business Units, Dine Newport Beach, Celebrate Newport Beach, Enterprise Newport Beach and Video Newport Beach. TACTICS: • As Newport Beach & Company embarks the "new normal," assess business -unit model, internal staffing, needs of community and pivot where needed. • Mine for opportunities to evolve model. • Seek additional revenue channels for Newport Beach & Company. STRATEGY 2: Continue to serve as marketing leaders for all leisure marketing efforts to promote Newport Beach as an aspirational lifestyle destination through Visit Newport Beach, Inc. Tourism -Occupancy Tax (TOT) Business Plan. STRATEGY 3: Continue to serve as sales, marketing and services leaders for all group/meetings efforts to promote and sell Newport Beach group/meetings hotels/TBID partners through the unique, Tourism Business Improvement District (TBID) funding source. STRATEGY 4: Serve as marketing, communications, finance and BID administration leaders for the Newport Beach Restaurant Association through the Dine Newport Beach business unit. TACTICS: • Provide marketing, communications, finance and BID administration services to the Newport Beach Restaurant Association (NBRA) and City of Newport Beach. • Guide NBRA BID Board of Directors through a new three-year strategic planning process. • Produce annual events such as the 16th Annual Newport Beach Restaurant Week in January 2022. • Produce and present NBRA BID Annual Meeting in March 2022. • Produce annual marketing plan, media buys and integrated marketing campaigns. 17-68 STRATEGY 5: Continue to provide marketing, communications and event -planning services for local brand -defining events to help elevate each event and increase event attendance through the Celebrate Newport Beach business unit. TACTICS: • Augment and consult with marketing and communications services for Newport Beach Film Festival, Newport Beach Wine & Food Festival, Newport Beach Restaurant Week, Hyatt Regency Newport Beach Jazz Festival, Hyatt Regency Newport Beach Summer Concert Series and Newport to Ensenada International Yacht Race. • Market and promote Newport Beach Christmas Boat Parade through a unique partnership with Newport Beach Chamber of Commerce and Commodores Club: - Produce Official Event Program. - Promote event to local, regional and national media. - Create event logo, signage, collateral and other printed promotional materials. - Select and acquire Grand Marshals. - Produce Media Kick-off Event with consumer activations. - Assist with securing event auction donation items. - Assist with Grand Marshal Boat event production including audio-visual, catering, celebrity wrangling and other services. STRATEGY 6: Continue to provide marketing and communications services for neighborhood and merchant association marketing through the Enterprise Newport Beach business unit. TACTICS: • Partner with Balboa Island Merchants Association, Inc. and Balboa Village Merchants Association with high-level marketing, communications and strategic -planning services. • Offload day-to-day digital and social media management for each neighborhood association to each association's local vendors. CELEBRATE NEWPORT BEACH N L B FNTFRPRISF NEWPORT BEACH 64 FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT 17-69 STRATEGY 7: Provide video -production, video -editing, scriptwriting and video services for local partners/ businesses and the City of Newport Beach government -access channel (Newport Beach TV) through the Video Newport Beach business unit. TACTICS: • Through new contract with the City of Newport Beach, significantly expand and improve Newport Beach TV shows, video content, graphics and overall government -access channel station management. • Provide a full, comprehensive suite of video -production services to local businesses, partners, civic organizations and hotels through video -production team and live TV studio. • Produce destination videos, TV shows, awards videos, sales videos and other promotional videos including new TV shows that promote Newport Beach as an aspirational lifestyle brand and destination. Video projects and video shows include and are not limited to: - Stay + Play Video Series & Ad Campaign - Weekly Bites - Culinary Journeys - Neighborhood Journeys - Newport Beach Luxe - Rosalind Williams Serve Excellence Award Video - Dennis O'Neil Partner in Progress Award Video - Citizen of the Year Award Video - Company Recap Videos - Dine Newport Beach/Newport Beach Restaurant Week Videos CULINARY • JOURNEYS CNYD N41 B N11 D F n `% NEWPORT BEACH NEWPORT BEACH RESTAURANT WEEK ...weekly i BTES DINE NEWPORT BEACH N 03 DINE NUJ NEWPORT BEACH NEWPORTBEACHANDCO.COM 17-70 ORGANIZATION AUDIENCE BUSINESS PLAN Staff, executive team, executive committee and board of directors of Newport Beach & Company and Visit Newport Beach, Inc. / r / ,!)' `� � ,/ ��� 1 1 '� ��� PI MITIGATE ORGANIZATION . WEAKNESSES C C W ................................................... AUDIENCE ADJUST TO REDUCED STAFF DUE TO FUTURE MAP COVID-19 REVENUE SHORTFALLS COMPETITIVE JOB MARKET, SALARY EXPECTATIONS NO CENTRALIZED HUMAN RESOURCES/ INFORMATION TECHNOLOGY DEPARTMENTS ANTI -TOURISM SENTIMENT ANTI-DEVELOPMENT/ANTI-TOURISM/ ANTI -AIRPORT SENTIMENT LIMITED CONVENTION, MEETING AND EVENT FACILITIES/VENUES LIMITED AMATEUR SPORTS FACILITIES STRONG ECONOMY MAKES COST OF SERVICES MORE EXPENSIVE ABILITY TO PIVOT, PLAN FOR WORST-CASE SCENARIOS HOTEL CLOSURES CONTINUE DUE TO EXPLOIT COVID-19 PANDEMIC (AFFECTING REVENUE) STRENGTHS HOTEL CLOSURES DUE TO RENOVATIONS ............ (AFFECTING REVENUE) COMMITTED STAFF, EXECUTIVE COMMITTEE PREMIER DESTINATION PRODUCT AND BOARD OF DIRECTORS STRONG CITY COUNCIL AND CITY STAFF ACCREDITED DESTINATION -MARKETING ORGANIZATION (8 YEARS WITH DISTINCTION) CERTIFIED DESTINATION MANAGEMENT EXECUTIVE (CDME) TEAM INDUSTRY LEADERS SMALL BUT MIGHTY TALENTED STAFF INNOVATIVE COMMUNITY -MARKETING ORGANIZATION MODEL, STRONG COMPANY CORE VALUES, BENEFITS, EDUCATIONAL OPPORTUNITIES, TEAM SPIRIT, OFFICE SPACE, COMPANY EVENTS AND COLLABORATION RESULTING IN AMAZING WORK PRODUCTIVITY, RESULTS AND ACHIEVEMENTS 10 -YEAR TBID AND TOT CONTRACTS WITH THE CITY OF NEWPORT BEACH APPEALING OFFICE INFRASTRUCTURE, ENVIRONMENT AND SCENIC LOCATION VIDEO/TELEVISION STUDIO HIGH-TECH, DIGITAL VIDEO EQUIPMENT (DRONE, VIRTUAL - REALITY AND HIGH-DEFINITION 4K CAMERAS) HIGHLY COMPETITIVE TOT AND TBID BUDGETS EVEN WITH COVID-19 REVENUE REDUCTIONS 68 FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT 17-73 T MONITOR OPPORTUNITIES CITY AND BOARD OF DIRECTORS' ENGAGEMENT PARTNER VENDORS AND PARTNERS TO NEGOTIATE BEST PRICE MAXIMIZE EFFICIENCIES LEADER IN THE DMO INDUSTRY STRONG INDUSTRY REPUTATION, STAFF EXPERTISE, TEAM AND ORGANIZATION, CREDENTIALED STAFF, ACCREDITED COMPANY EVOLVE TECHNOLOGY USED CONTINUE TO MAINTAIN POSITIVE CULTURE NEWLY RENOVATED, ELEVATED NEWPORT BEACH MARRIOTT HOTEL & SPA BOARD REPORTING: MAKING CONTENT ENGAGING AND RELEVANT TO BOARD MEMBERS ADVOCATE FOR NEW HOTEL, TRANSPORTATION AND EVENT VENUES 2022 SUPER BOWL, 2024 WORLD CUP AND 2028 SUMMER OLYMPICS ALL IN AND AROUND LOS ANGELES METRO AREA PREPARE FOR CONTINGENCIES OR THREATS GLOBAL PANDEMICS, COVID-19 VARIANTS/NEW STRAINS, TRAVEL BANS & QUARANTINES ECONOMIC RECESSION, INFLATION, STAGNATION ECONOMIC AND POLITICAL UNCERTAINTY/INSTABILITY FLUCTUATING FOREIGN- EXCHANGE RATES TRIBAL POLITICAL DISCOURSE RACIAL STRUGGLES/PROTESTS SHARING ECONOMY (SHORT-TERM RENTALS/RIDESHARE) VALUE-ADDED TAXES (VAT) ON SERVICES PURCHASED OVERSEAS INCREASED LOCAL COMPETITION (EXAMPLES: WALDORF-ASTORIA, JW MARRIOTT REBRANDS IN DANA POINT) HOTEL UPGRADES, NEW HOTELS AND MEETING VENUES THIRD -PARTY COMMISSION STRUCTURES NATURAL/WEATHER-RELATED DISASTERS HIGH COST OF EMPLOYEE BENEFITS (HEALTHCARE, DENTAL, VISION, LIFE AND DISABILITY INSURANCE; 401K, ETC.) COMPETING GLOBAL DESTINATIONS WITH NEW HOTELS AND NEW MEETING SPACE SIGNIFICANT HOTEL LEADERSHIP CHANGES ADA COMPLIANT WEBSITES AND THREAT OF LAWSUITS NEWPORTBEACHANDCO.COM 17-74 ORGANIZATION & BOARD OF DIRECTORS EXECUTIVE SUMMARY Newport Beach & Company presents this integrated administration, information technology, finance, marketing, and group sales and services plan to engage the staff and boards of directors of both companies (Newport Beach & Company/Visit Newport Beach, Inc.) and the TBID board of directors to increase productivity, generate efficiencies, reduce costs, and attract, satisfy and retain quality employees and board members for the two organizations. After the past 15 months of the COVID-19 pandemic, Newport Beach & Company and Visit Newport Beach, Inc. are uniquely positioned to thrive and excel in this new world as vaccines become more prevalent and states and regions begin to open back up again for travel and business. Throughout the depths of the pandemic, neither organization tapped into cash reserves, and through strategic expense -trimming and staff reductions, both companies were able to save additional cash revenue for leisure recovery campaigns and group/ meetings recovery incentives. 70 FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT 17-75 With the internal mantra, "Re-engage. Revitalize. Rejoice," Newport Beach & Company plans to engage its employees and boards of directors in new, innovative ways to ensure the long-term viability, success and results of Newport Beach & Company and its six subsidiary business units: - Visit Newport Beach, Inc. (tourism -occupancy tax drives incremental tourism) - Visit Newport Beach (tourism business improvement district generates incremental meetings business) - Video Newport Beach (destination lifestyle video content) and Newport Beach TV (government -access television channel/television studio) - Enterprise Newport Beach (merchant associations/economic development) - Dine Newport Beach (Newport Beach Restaurant Association) - Celebrate Newport Beach (brand -defining events) The cross -functional planning team developed this integrated business plan for the organization and board of directors customer segment with a management -by -objectives approach where objectives are quantifiable goals, strategies form the strategic approaches to reaching the benchmark objectives, and tactics are projects that support overarching strategies. CKD O �1 I DF O ENTERPRISF NEWPORTBEACH NEWPORT BEACH O CELEBRATE NEWPORT BEACH NEWPORTBEACHANDCO.COM 17-76 ORGANIZATION &BOARD OF DIRECTORS BUSINESS OBJECTIVES OBJECTIVE 1 BOARD ENGAGEMENT INCREASE ENGAGEMENT WITH THE BOARDS OF DIRECTORS OF NEWPORT BEACH & COMPANY, VISIT NEWPORT BEACH, INC., AND THE TOURISM BUSINESS IMPROVEMENT DISTRICT TO AIM FOR 100 -PERCENT PARTICIPATION AT BOARD MEETINGS, ANNUAL MARKETING OUTLOOK RECEPTION AND OTHER COMPANY FUNCTIONS. OBJECTIVE 2 PREPARE FOR THE WORST PLAN FOR THE BEST ENSURE A POSITIVE REPUTATION IN THE COMMUNITY AND INDUSTRY AND THE LONG-TERM VIABILITY AND FUNCTIONALITY OF THE COMPANIES, BOARDS OF DIRECTORS, MANAGEMENT TEAM AND EMPLOYEES IN THE EVENT OF A CRISIS OR LEADERSHIP CHANGE. Ilk: .,.s.. 72 FISCAI ON BUSINESS PLA 3 17-77 OBJECTIVE 3 IMPROVE COMPANY EFFICIENCY AND PERFORMANCE INCREASE EFFICIENCY, FUNCTIONALITY AND PERFORMANCE OF BUSINESS -PROCESSES WORKFLOW TO ELIMINATE CHANCE FOR ERRORS, REDUNDANCIES AND INEFFICIENCIES. OBJECTIVE 4 PREFERRED DMO EMPLOYER BECOME THE PREFERRED REGIONAL DESTINATION -MARKETING ORGANIZATION (DMO) EMPLOYER IN SOUTHERN CALIFORNIA AND INCREASE EMPLOYEE PERFORMANCE, MORALE AND RETENTION AND OTHER MEASURES OF EMPLOYEE SATISFACTION. OBJECTIVE 5 LONG-TERM CAPITAL & I.T. INFRASTRUCTURE PLAN DEVELOP A LONG-TERM CAPITAL AND INFORMATION TECHNOLOGY INFRASTRUCTURE PLAN TO THINK AHEAD AND BUDGET FOR FUTURE, LARGE CAPITAL OR I.T. TECHNOLOGY SOLUTIONS WITH AN EYE TOWARD THE FUTURE AND CONTINUING THE LEGACY OF OUR ENTREPRENEURIAL, LEADING-EDGE ORGANIZATION. MICRO -AUDIENCES NEWPORT BEACH & COMPANY EMPLOYEES/STAFF VISIT NEWPORT BEACH, INC. EMPLOYEES/STAFF NEWPORT BEACH & COMPANY/VISIT NEWPORT BEACH, INC. MANAGEMENT TEAM NEWPORT BEACH & COMPANY/VISIT NEWPORT BEACH, INC. BOARDS OF DIRECTORS NEWPORT BEACH & COMPANY/VISIT NEWPORT BEACH, INC. EXECUTIVE COMMITTEE TOURISM BUSINESS IMPROVEMENT DISTRICT (TBID) BOARD OF DIRECTORS NEWPORT BEACH & COMPANY MARKETING COMMITTEE NEWPORTBEACHANDCO.COM 17-78 OBJECTIVE 1 ORGANIZATION & BOARD OF DIRECTORS BUSINESS OBJECTIVES STRATEGY 1: BOARD ENGAGEMENT INCREASE ENGAGEMENT WITH THE BOARD OF DIRECTORS OF NEWPORT BEACH & COMPANY, VISIT NEWPORT BEACH, INC., AND THE TOURISM BUSINESS IMPROVEMENT DISTRICT TO AIM FOR 100 -PERCENT PARTICIPATION AT BOARD MEETINGS, ANNUAL MARKETING OUTLOOK RECEPTION AND OTHER COMPANY FUNCTIONS. Develop a communications and outreach strategy to board members of all three companies in an effort to increase board engagement, attendance and commitment to each organization. TACTICS: • Continue weekly e -Newsletters to partners, board members and community leaders. • Include a short, board -member spotlight in the Quarterly e -Newsletter. • Bring in board members for focus groups. • Review functionality of processes at board meetings. • Continue to create engaging board meetings with guest speakers. • Continue great work of the Nomination Committee in selecting and recruiting new Executive Committee and Board of Directors. • Create a short, highlight video about the companies, business units, mission, vision and economic impact to the destination. STRATEGY 2: Ensure there is an educational component at all Board of Directors meetings, Annual Marketing Outlook Reception and other company events to give board members an opportunity to learn about an issue or topic more in-depth. TACTICS: • Continue to secure top-notch guest speakers at the four annual Boards of Directors meetings in 2022. • Continue to secure top-notch presenters/ keynote speakers or panel discussions at Annual Marketing Outlook Reception and future company events. • Through electronic communications, email, videos and presentations, ensure there is an educational aspect to the content presented to continue to elevate the boards of directors to even greater heights and to encourage more board engagement. 74 FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT 17-79 STRATEGY 3: Ensure all new board members and business -unit volunteer leadership go through a Newport Beach & Company orientation with executive management team to foster a thorough understanding of the company, its mission, vision, goals and structure. These board and volunteer leaders include Newport Beach & Company, Visit Newport Beach, Inc. (TOT) and Visit Newport Beach, Inc. (TBID) boards of directors as well as the volunteer leaders who work with Newport Beach & Company at the Newport Beach Restaurant Association, Balboa Island Merchants Association, Inc., Balboa Village Merchants Association, Corona del Mar Chamber of Commerce and Newport Beach Chamber of Commerce. TACTICS: • Continue to evolve and improve New Board Member Orientation and New Employee PowerPoint presentation. • Customize and adapt New Board Member Orientation presentation and share with new members of partner civic organization leadership boards. OBJECTIVE 2 ORGANIZATION & BOARD OF DIRECTORS BUSINESS OBJECTIVES STRATEGY 1: PREPARE FOR THE WORST. PLAN FOR THE BEST. ENSURE A POSITIVE REPUTATION IN THE COMMUNITY AND INDUSTRY AND THE LONG-TERM VIABILITY AND FUNCTIONALITY OF THE COMPANIES, BOARDS OF DIRECTORS, MANAGEMENT TEAM AND EMPLOYEES IN THE EVENT OF A CRISIS OR LEADERSHIP CHANGE. Build on the company's comprehensive emergency plan that was created for the DMAP Accreditation application and expanded on during the COVID-19 pandemic. Ensure administration, human resources, finance, media relations and technology functional areas are included in the comprehensive plan for the worst-case scenario including, but not limited to: COVID-19 variants/vaccine-resistant strains, future pandemics, inclement weather, ground disturbances, terrorism, cyber -terrorism, active -shooter scenarios, infrastructure collapse as well as internal and external communications plans for leadership changes. TACTICS: • Establish an emergency -planning committee with involvement from the management team, administration, finance, media relations and information technology functional areas of the company. • Create hard copy and digital versions of the comprehensive emergency plan. • Promote through corporate channel the Destinations International accreditation with distinction received in 2019 valid for eight years. • Partner with a third -party company to provide a technology-based, instant communications channel to reach top tourism, hospitality and city officials in the event of an emergency. NEWPORTBEACHANDCO.COM 17-80 • Include succession plans for critical functional positions within the company. • Choose designated media spokespeople for the company including back-up spokespeople. • Develop a phone tree or some other communications plan to reach the boards of directors, executive committee, employees, City of Newport Beach staff, Newport Beach Emergency Command Center, Orange County government, State of California, Visit California and neighboring destination marketing organizations. • Implement a rehearsal procedure via an annual drill. STRATEGY 2: Build on the budgeting, forecasting, finance, human resources, legal and other key learnings from the COVID-19 pandemic to ensure the long-term viability of the organization, tourism industry and leadership during a possible future catastrophic event or crisis. TACTICS: • Create fiscal -year budgets for the three companies with possible emergency revenue/expense cuts in mind, e.g. itemized details of each budget line item, so items can be cut or reduced immediately. • Ensure each company's budget is developed with expenses planned out/timed out through the 12 months, so future expenses can be easily cut or reduced. • Ensure cash reserves for each of the three entities are healthy, full and to appropriate levels. • Ensure cash is fairly liquid and easily available in no -risk withdrawal money markets, certificates of deposit or other investment accounts. • Ensure duplicate IT solutions are available for every employee to be able to work from home in an emergency situation. • Form strong relationship with company bank to assist with future grants, aide and small- business loans should federal -relief programs become available during a crisis. • Continue investment in Zoom and other possible cloud -based, video -conferencing software solutions for remote meetings. OBJECTIVE 3 ORGANIZATION & BOARD OF DIRECTORS BUSINESS OBJECTIVES IMPROVE COMPANY EFFICIENCY AND PERFORMANCE. INCREASE EFFICIENCY, FUNCTIONALITY AND PERFORMANCE OF BUSINESS PROCESSES WORKFLOW TO ELIMINATE CHANCE FOR ERRORS, REDUNDANCIES AND INEFFICIENCIES. 76 FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT 17-81 STRATEGY 1: Examine and possibly reinvent all business processes, workflow and project management throughout the company. TACTICS: • Monitor all processes for project and time management critical paths throughout the company to find gaps, bottlenecks or issues that impede successful outcomes, positive results, exceeded goals or met deadlines. • Continue to expand usage of Airtable project -management software for process -oriented solutions to better manage projects, resources and time. • Explore new time -management software solution to manage and approve paid -time -off requests and hourly employee time cards. • Implement and train staff on new software solutions. • Continue to look for enhancements, features and new tools to maximize return on investment. OBJECTIVE 4 ORGANIZATION & BOARD OF DIRECTORS BUSINESS OBJECTIVES STRATEGY 1: PREFERRED DMO EMPLOYER BECOME THE PREFERRED REGIONAL DESTINATION MARKETING ORGANIZATION (DMO) EMPLOYER IN SOUTHERN CALIFORNIA AND INCREASE EMPLOYEE PERFORMANCE, MORALE AND RETENTION, AND OTHER MEASURES OF EMPLOYEE SATISFACTION. CENTRALIZE SEVERAL EMPLOYEE BENEFITS, OFFER LETTERS AND EMPLOYEE -FACING INFORMATION INTO A FORMALIZED PROCESS WITH CLEAR ACCOUNTABILITY. TACTICS: • Move all benefits, new -employee offer letters and other employee -facing information under the administration team. • Explore a new workforce -management software solution to centralize all employee -facing documentation, time cards, payroll, benefits information and other employee and company information. • Continue the employee value -proposition report showing each employee's total compensation (including base salary, benefits, payroll taxes and other hidden compensation), so employees know their total monetary value to the company. NEWPORTBEACHANDCO.COM 17-82 STRATEGY 2: CONTINUE EMPLOYEE -ENGAGEMENT BENEFITS, EDUCATIONAL OPPORTUNITIES AND EMPLOYEE EVENTS AND RETREATS TO INCREASE EMPLOYEE MORALE, PRODUCTIVITY AND RETENTION. TACTICS: • Continue popular fitness -center reimbursement/wellness reimbursement, educational opportunities and company/staff retreats, meetings and team outings. • Continue the stay -and -play benefit where employees are encouraged to experience the destination's hospitality features first-hand as a guest. • Continue successful holiday lunch. • Continue infusing the company's core values into everything we do. • Ensure summer staff outing is a fun, bonding experience for all employees. • Continue to refine and add worthy educational components and bonding activities at the annual staff retreat. • Continue to support external, job-related educational opportunities for all employees. • Explore new educational opportunities outside the tourism industry for executive team. OBJECTIVE 5 ORGANIZATION & BOARD OF DIRECTORS BUSINESS OBJECTIVES STRATEGY 1: LONG-TERM CAPITAL & I.T. INFRASTRUCTURE PLAN DEVELOP A LONG-TERM CAPITAL AND INFORMATION TECHNOLOGY INFRASTRUCTURE PLAN TO THINK AHEAD AND BUDGET FOR FUTURE, LARGE CAPITAL OR I.T. TECHNOLOGY SOLUTIONS WITH AN EYE TOWARD THE FUTURE AND CONTINUING THE LEGACY OF OUR ENTREPRENEURIAL, LEADING-EDGE ORGANIZATION. WORKING WITH I.T. CONSULTANTS, CREATE A MULTI-YEAR I.T. INFRASTRUCTURE PLAN TO ACCOUNT FOR AND BUDGET FOR LARGE, FUTURE I.T.-RELATED CAPITAL EXPENDITURES. TACTICS: • Develop multi-year I.T. Capital Infrastructure Plan for large expenditures and budgeting purposes. 78 FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT 17-83 HUNTRESS MDR SOFTWARE FOR ALL WINDOWS DEVICES ($3.50/DEVICE/MONTH) $ $ 1,260 6,330 $ 192 $ 1,260 4,080 $ 192 $ 1,260 1,260 4,080 $ 4,080 192 $ 192 OFFICE 365 - $340/MONTH-INITIAL OUTLAY - $2,250 SENTINELONE ANTIVIRUS FOR SERVERS - ($16/MONTH) REPLACE CURRENT VIDEO SERVER $ $ $ $ $ $ - $ - $ - $ $ - $ - $ 10,000 $ - $ - $ 37,000 24,000 10,000 12,000 3,500 $ $ $ $ $ 18,5500 12,000 10,000 - - CLOUD BACKUP FOR VIDEOS REPLACE AGING COMPUTERS (OLDER THAN 5 YEARS) REPLACE AGING PHONE SYSTEM REPLACE AGING FILE SERVER OPERATING SYSTEM TOTAL ANNUAL I.T. CAPITAL EXPENDITURES $ 7,782 $ 15,532 $ 92,032 $ 46,032 STRATEGY 2: CREATE A MULTI-YEAR, DIGITAL MARKETING AND TRADESHOW BOOTH CAPITAL INVESTMENT AND DEPRECIATION PLAN TO ACCOUNT FOR AND BUDGET FOR LARGE, FUTURE DIGITAL MARKETING AND TRADESHOW -BOOTH RELATED CAPITAL EXPENDITURES, E.G. NEW WEBSITE REDESIGN, NEW TRADESHOW BOOTH, NEW MOBILE APPLICATION, ETC. TACTICS: • Working with digital agency -of -record, develop a multi-year plan to account for and depreciate appropriately future, large digital marketing and website development expenditures. • Develop a multi-year plan to account for and depreciate appropriately future, large tradeshow booth creation, design and production expenditures. NEWPORTBEACHANDCO.COM 17-84 $U FISCAL -YEAR 2022 DESTINATION BU INESS� P ; t r ol . IJ' a. �. �� ter„ +, + �•`, ''` r q T i 1785 a - '"try m 11 82 BUDGETS 84 GOALS 86 BRAND ARCHITECTURE 90 EXECUTIVE COMMITTEE & BOARD OF DIRECTORS 91 TBID BOARD OF DIRECTORS AND MARKETING COMMITTEE 92 NEWPORT BEACH & COMPANY TEAM _ •� .� k rJ ���, ti ,tom - � _ r c •�. -51 L • a 4, . , '.` \ • \ f �� 1 Lam.,♦ .' � _ 2022 BUDGETS VISIT NEWPORT BEACH INC. (TBID) GROUP SALES & MARKETING FY2022 BUDGET ALLOCATION IV ADVERTISING COMMUNITY RELATIONS DIGITAL MARKETING/WEBSITE PR/COMMUNICATIONS TRADE SHOWS SALES GROUP ENHANCEMENT CREDIT HOSTED INDUSTRY EVENTS INDUSTRY PARTNERSHIP/SPONSORSHIPS SITE INSPECTIONS ■ CLIENTS EVENTS CONFERENCE SERVICES ■ DATA ■ SPECIAL PROMOTIONS ■ CUSTOMIZED DESTINATION SUPPORT NEWPORTVISIT GROUP Revenue $2,766,107 Operating Expenses $1522,863 Advertising $142,000 Community Relations $66,250 Digital Marketing/Website $77,058 PR/Communications $108,000 Trade Shows $197,122 Sales Group Enhancement Credit $230,000 Hosted Industry Events $15,000 Industry Partnerships/Sponsorships $80,000 Site Inspections $32,000 Client Events $100,000 Conference Services $500 Database/Prospecting $81,000 Special Promotions $10,000 Customized Destination Support $303,000 $2,964,793 82 FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT 17-87 VISIT NEWPORT BEACH, INC. (TOT) LEISURE FY2022 BUDGET ALLOCATION Nr ADVERTISING COMMUNITY RELATIONS COLLATERAL INTERNATIONAL MARKETING DIGITAL MARKETING PR/COMMUMICATIONS VISIT ••• •T) LEISURE BUDGET ALLOCATION1 . 1 Revenue $3,925,729 Operating Expenses $74,135 Advertising $1,221,800 Community Relations $665,000 Collateral $9,000 International Marketing $373,500 Digital Marketing $440,645 PR/Communications $311,600 Fees and Contributions to Newport Beach & Company $1,915,429 NEWPORT BEACH & COMPANY FY2022 BUDGET ALLOCATION COMMUNITY RELATIONS COMMUNITY RELATIONS WEBSITE PR/COMMUNICATIONS NEWPORT . . 1 Revenue $2,252,609 Operating Expenses $1,941,609 Community Relations $282,000 Collateral $14,000 Website $5,000 PR/Communications $10,000 NEWPORTBEACH ANDCO.COM 17-88 2022 GOALS VISIT NEWPORT BEACH, INC. FY2022 GOALS VISIT NEWPORT BEACH, INC LEISURE MARKETING GOALS TOPLINE GOALS Tourism Occupancy Tax Revenue $9,868,703 N/A $19,000,000 Marketing Campaign Room Nights 64,500 N/A 30,000 Marketing Campaign Economic Impact $42,500,000 $42,000,000 $20,000,000 DIGITAL MARKETING VNB Web Visits 1,341,216 N/A 1,000,000 Referrals to Partner Websites 107,566 N/A 103,000 SOCIAL MEDIA Social Media Followers 214,159 N/A 230,000 ADVERTISING Total Ad Impressions 50,372,651 N/A 75,000,000 Online Ad Clicks to Site 140,445 N/A 125,000 MEDIA RELATIONS Media Placements 1,935 N/A 1,000 Key Consumer Placements 448 N/A 250 Key Trade Media Placements 40 N/A 75 INTERNATIONAL In -Market Agent Visits 24 N/A N/A International Media Placements N/A N/A 125 Notes: * No goals in FY2021 due to the COVID-19 pandemic. 84 FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT 17-89 2022 GOALS NEWPORT BEACH & COMPANY FY2022 GOALS NEWPORT BEACH & COMPANY CELEBRATE NEWPORT BEACH DIGITAL MARKETING Web Visits 109,581 N/A 110,000 ADVERTISING Total Ad Impressions 8,357,086 N/A 10,000,000 MEDIA RELATIONS Placements 1,267 N/A 75 DINE NEWPORT BEACH JEL CONSUMER DINING SPENDING Estimated Consumer Spending $3,900,00 N/A $3,500,000 DIGITAL MARKETING DineNB.com Web Visits 260,510 N/A 300,000 Newport Beach Restaurant Week Digital Savings Pass N/A N/A 5,000 Newport Beach Restaurant Week Online Reservations 4,848 N/A 4,500 SOCIAL MEDIA Social Media Followers 14,496 N/A 22,000 MEDIA RELATIONS Media Placements 267 N/A 100 VIDEO NEWPORT BEACH VIDEO & MULTIMEDIA MARKETING New Video Episodes & TV Shows 66 N/A 75 New Video Completed Views 120,139 N/A 125,000 Notes: * No goals in FY2021 due to the COVID-19 pandemic. NEWPORTBEACHANDCO.COM 17-90 BRAND ARCHITECTURE Newport Beach is more than a destination, it's a global lifestyle brand to see; and then be seen in. Newport Beach & Company's new brand identity is designed to be an internationally -recognizable label to embellish and enhance the jetsetter's lifestyle well -beyond their visit. It's aesthetic, architype and architecture is meant for immersion into the Newport Beach lifestyle through premium products, home and outdoor goods, apparel and much more. Newport Beach & Company's label is glamourous and global but with a coastal casual style. Proud of tradition but bold in modern interpretations. Inspirational and aspirational. It's luxury at your leisure. i f d t HG FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT 17-91 NEWPORT B L AC IA & COMPANY VISIT NEWPORT BEACH CALIFORNIA NEWPORT BEACH & COMPANY I Ole :.:a �.. NEWPORTBEACHANDCO.COM 17-92 BRAND ARCHITECTURE BUSINESS UNITS Visit Newport Beach Inc. is the destination brand steward business unit dedicated to managing all aspects of the Newport Beach brand. Through a dynamic, multi -faceted strategic marketing and sales program, Newport Beach is amplified at the local, regional, domestic and international world stage, attracting leisure travelers and group business to enhance the economic vitality of the city and its residents. Dine Newport Beach is the partnership between Newport Beach & Company and the Newport Beach Restaurant Association. Crafting an identity for Newport Beach's premier culinary scene and its 450 members, this unit serves as a year-round strategic branding and marketing operation to bring foodies through the doors of local businesses. 88 FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT 17-93 CKD CELEBRA-M NEWPORT BEACH 0 ENTERPRISE NEWPORTBEACH C N71 D NEWT BEP Mr - --cry.--• --M=-� '; _= The Celebrate Newport Beach business unit partners with the destination's signature marquee community events and their organizers. From handling operations to all marketing and communications, this division provides tailored event services and promotion for famed signature annual events including Newport Beach Restaurant Week, Newport Beach Film Festival, Hyatt Regency Newport Beach Summer Concert Series and the Newport Beach Christmas Boat Parade and Ring of Lights. Enterprise Newport Beach is established to provide expert marketing counsel and support to Newport Beach's merchants associations. Enterprise Newport Beach works collaboratively with the boards of the Balboa Village and Balboa Island to develop and deploy marketing campaigns year-round. Newport Beach & Company brings compelling destination stories to screens around the world through expertly -produced video content that elevates the Newport Beach brand image to a higher definition. Newport Beach TV: N B NBTV is the partnership `J between Newport Beach & Company and the City of Newport Beach created to manage all aspects of the City's government television channel including programming and production. NEWPORTBEACHANDCO.COM 17-94 EXECUTIVE COMMITTEE CHAIRPERSON DEBBIE SNAVELY Newport Beach Marriott Hotel & Spa VICE CHAIRPERSON HOMER BLUDAU Former City Manager TREASURER CANDACE BISCONTE Eventis Destination Services SECRETARY LINDA M. BEIMFOHR City Cruises Anchored by Hornblower MEMBER AT LARGE MEMBER AT LARGE MEMBER AT LARGE CHIEF JON LEWIS GERARD WIDDER SHARON WOOD Newport Beach The Resort at City of Newport Beach Police Department Pelican Hill Appointee .0 BOARD OF DIRECTORS JOE ADAMS Discovery Cube/Ocean Quest DAVID BEEK Island Marine Fuel LINDA M. BEIMFOHR City Cruises Anchored by Hornblower CANDACE BISCONTE Eventis Destination Services HOMER BLUDAU Former City Manager SCOTT CATLETT City of Newport Beach CHARLES CHO Newport Beach Marriott Bayview MARINA DUTTON Balboa Bay Resort MICHAEL GELFAND Newport Dunes Waterfront Resort & Marina ERIN HENRY Hyatt Regency Newport Beach GREGG HERNING Renaissance Hotel Newport Beach RUSH HILL NRM Real Estate Advisers WASIM KAZI Hyatt Regency John Wayne Airport, Newport Beach DENNIS KUHL Angels Baseball CHIEF JON LEWIS Newport Beach Police Department MARIO MAROVIC Lounge Group Consulting STEVE ROSANSKY Newport Beach Chamber of Commerce GREGG SCHWENK Newport Beach Film Festival DEBBIE SNAVELY Newport Beach Marriott Hotel & Spa JOE STAPLETON Spinnaker Investment Group TANYA THOMAS Fashion Island FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT GERARD WIDDER The Resort at Pelican Hill SHARON WOOD City of Newport Beach Appointee OPEN Fashion Island Hotel OPEN Lido House Hotel 17-95 MARKETING COMMITTEE CHAIRPERSON BEN STINNETT Marriott International PRISCILLA BALCACERES Lido House Hotel SHELLEY CALLAHAN Hyatt Regency Newport Beach KELLY CARLSON Balboa Village Merchant Association ANGELA CORTRIGHT Spa Gregorie's SARAH CROWE Irvine Company Resort Properties LILIANA GARCIA Lido House Hotel NANCY GARDNER Newport Beach Conservancy JAN HOLLIS Hyatt Regency John Wayne Airport, Newport Beach JAMES KEAVENY The Resort at Pelican Hill KAMIA KINCHLOW Balboa Bay Resort BEVERLY MORGAN Sherman Library & Gardens DIANA PARSEL Fashion Island JOHN POPE City of Newport Beach MAUREEN SLOAN HelmsBriscoe MICHELLE ST. AMOUR Lido Marina Village KIMBERLY STEPHENSON Renaissance Hotel Newport Beach AMY DEIFT City Cruises Anchored by Hornblower OPEN Fashion Island Hotel Newport Beach OPEN John Wa, TOURISM BUSINESS IMPROVEMENT DISTRICT (TBID) BOARD OF DIRECTORS CHAIRPERSON DEBBIE SNAVELY Newport Beach Marriott Hotel & Spa CHARLES CHO Newport Beach Marriott Bayview MARINA DUTTON Balboa Bay Resort MICHAEL GELFAND Newport Dunes Waterfront Resort & Marina ERIN HENRY Hyatt Regency Newport Beach GREGG HERNING Renaissance Hotel Newport Beach WASIM KAZI Hyatt Regency John Wayne Airport, Newport Beach GERARD WIDDER Fashion Island Hotel OPEN Lido House Hotel NEWPORTBEACHANDCO.COM 17-96 GARY C. SHERWIN, APR, CDME PRESIDENT & CEO EXECUTIVE TEAM MICHELLE DONAHUE, CDME SENIOR VICE PRESIDENT OF SALES DOUG McCLAIN, CDME SENIOR VICE PRESIDENT & CHIEF MARKETING OFFICER ADMINISTRATION DINA ALLELUIA -CARR FINANCE COORDINATOR LILY PEARSON VICE PRESIDENT OF FINANCE KAYCEE ROBISON ADMINISTRATIVE ASSISTANT MARKETING BRIANNA GRIMALDI SENIOR DIGITAL MARKETING MANAGER GRACE HONG COMMUNICATIONS MANAGER JACKIE INFANTE CREATIVE DIRECTOR ERIN ROSE SENIOR DIRECTOR OF COMMUNICATIONS VISIT NEWPORT GROUP SALES BEACHONC JENNIFER BRANNON DESTINATION SERVICES MANAGER MICHELLE DEVINE, CMM, HMCC NATIONAL ACCOUNT DIRECTOR AMANDA KLIEM, CDME, HMCC, CITP DIRECTOR OF SALES JANE LOENHORST GROUP MARKETING & COMMUNICATIONS DIRECTOR ENRIQUE PAOLO NATIONAL ACCOUNT DIRECTOR 92 FISCAL -YEAR 2022 DESTINATION BUSINESS PLAN SUPPLEMENT 17-97 NEWPORT BEACH TV DOMINIC DIMARE NEWPORT BEACH TV PRODUCTION ASSISTANT LUIS HERRERA NEWPORT BEACH TV CAMERA CREW ED OLEN NEWPORT BEACH TV INDEPENDENT CONTRACTOR --Iqpk di A� . IF; t R�Bt w p,ACHANDCO.COM JULY - SEPTEMBER 2021 FALL LEISURE CAMPAIGN SEPTEMBER - NOVEMBER SUMMER LEISURE CAMPAIGN JULY & AUGUST 1,000 REASONS SALES RFP PROMOTION JULY & AUGUST 94 FISCk-YEAR 2022 DESTINATION OCTOBER - DECEMBER r A, ANNUAL MARKETING OUTLOOK RECEPTION �- OCTOBER � , NEWPORT BEACH FILM FESTIVAL OCTOBER IMEX NOVEMBER FAI PF SEPTEM r 17-99 � 2021 JANUARY - MARCH 2022 APRIL - JUNE 2022 NEWPORT BEACH SPRING FILM FESTIVAL U.K. HONOURS EVENT I lT•�.►n� nneenn & U.K. PROMOTION MARCH -JUNE FEBRUARY WINTER LEISURE CAMPAIGN DECEMBER - FEBRUARY E:7��/ "000 SALES LL/WINTER ROMOTION IBER - FEBRUARY w NEWPORT BEACH CHRISTMAS BOAT PARADE DECEMBER MEETING INDUSTRY COUNCIL MARCH \.*# RE-ENTER UK MARKET NEWPORT BEACH JANUARY - JUNE RESTAURANT WEEK JANUARY RE-ENTER CANADA MARKET APRIL - JUNE HELMSBRISCOE ANNUAL MEETING APRIL 00 i ® ?FW�RT O � NEWPORT BEACH _ s COMPANY oa��' forever summ - .•L •�:Y•,I F�...:1 -'•�AF VISIT NEWPORT L3EACH © 2021 NEWPORT BEACH & COMPANY NEWPORT BEACH & COMPANY • 1600 NEWPORT CENTER DRIVE • STE. 120 NEWPORT BEACH, CA 92660 VISITNEWPORTBEACH.COM • NEWPORTBEACHANDCO.COM • 949.719.6100 • 800.94.COAST 17-101 ATTACHMENT B 0 vIsI-r E I F,' [] R -I- 13 L yk4c 1-1 4--.4L1 F¢R Rl I.9X Visit Newport Beach, Inc. Leisure Marketing (TOT) FY2022 Budget Operating Revenue Revenue 41000 - TOT/TBID Income 44000 - Event Hosting Income Total Revenue 46001 - Interest Income Total Operating Revenue Expenses Salary and Wages 61010 - Salaries and Wages 61030 - Payroll Tax Expenses 61040 - Accrued PTO Expense Total Salary and Wages Benefits 61125 - Vision Insurance 61140 - Retirement Plan (401k) 61150 - Flexible Spending Plan Total Benefits General and Administrative Expenses Operating Expenses Operating Expenses 64100 - Office Supplies 64101 - Kitchen Supplies 64115 - Office Equipment (non-deprec) 64120 - Equipment Repairs & Maintenance 64125 - Computer Software (non-deprec) 64130 - Voice and Data - Office 64145 - Shipping Charges 64150 - Bank Fees 64160 - Membership Dues 64170 - Team Meetings 64175 - Governance Meeting Expenses 64300 - Depreciation Expense 64350 - Interest Expense Total Operating Expenses Insurance 63100 - General Liability Insurance 63300 - Board of Directors Insurance Total Insurance Professional Fees 64205 - Payroll Processing Service 3,922,729.00 3,922,729 3,000 3,925,729 300.00 500.00 0.00 0.00 6,100.00 120.00 225.00 600.00 36,350.00 10,000 5,520 6,000 65,715 1,220 2,200 3,420 17-102 0 vIsI_r 13 L. C: 1-A 4--,4L1 F¢Fi RI 1A Visit Newport Beach, Inc. Leisure Marketing (TOT) FY2022 Budget 64207 - Bloggers 7,500 64201 - Audit Fees 4,000 64202 - Tax Preparation Fees 1,000 Total Professional Fees 12,500 Travel Expenses 65100 - Airfare 5,000 65200 - Accommodations 2,500 65300 - Meals 2,000 65400 - Transportation Costs 1,000 65405 - Mileage ($0.58/mile) 500 65500 - Other Travel Costs 500 Total Travel Expenses 11,500 Total General and Administrative 93,135 Advertising Expenses 66101 - Advertising - Purchased 1,024,600 66102 - Advertising - Local Events 20,000 66121 - Promotional Gift Cards 2,500 66123 - Promotional Client Gifts 2,500 66202 - Ad Production 50,000 66203 - Creative Design/Development 50,000 66205 - Photography/Video Production 72,200 66212 - Community Sponsorships 150,000 Total Advertising Expenses 1,371,800 Marketing Expenses Community Relations 67103 - Community Partner Events 116,500 67101 - Research 213,000 67102 - Christmas Boat Parade 100,000 67105 - Awards 5,000 67107 - Promotional Items 3,000 67108 - Company -Sponsored Events - 67109 - Hospitality Training 2,500 Total Community Relations 440,000 Marketing Collateral 67301 - Inspiration Guide - 67311 - Collateral Production Expenses 5,000 67312 - Collateral Distribution 4,000 Total Marketing Collateral 9,000 Digital Marketing 67501 - Social Media 60,000 67502 - Website Maintenance 117,915 67503 - Online Search Advertising 108,000 67504 - Digital Advertising 20,000 17-103 0 13LC:1� 4--,4L1 F¢Fi RI 1A Visit Newport Beach, Inc. Leisure Marketing (TOT) FY2022 Budget 67506 - Mobile Application 67508 - Website Redesign Expenses 67511 - Digital Lifestyle Channel Production 66211 - CRM Maintenance Total Digital Marketing Communications/Public Relations 67601 - Media Services 67602 - Media FAM Tours 67605 - Media Special Programs 67607 - Media Relations 67608 - Digital Assets/Media Library Total Communications/Public Relations Total Marketing Expenses International Marketing Initiatives 67401 - International Brand Awareness Fees 67402 - International TTI FAM Tours 67403 - International Promotions 67404 - International Trade Shows 67405 - International Airfare 67406 - International Accommodations 67407 - International Meals 67408 - International Transportation Costs 67409 - International Other Travel Costs 67410 - International Business Meals/Entertainment 67411 - International Promotional Items 67412 - International Brand Events 67413 - International Sales Missions Total International Marketing Initiatives NB&Company Fees 68001 - NB&Co Fees Total NB&Company Fees Total Expenses Utilization of Carryover Cash (not reserve funds) Net Income 50,000 30,000 25,000 29,730 440,645 17,600 50,000 150,000 75,000 292,600 1,182,245 70,000 18,000 10,000 10,000 3,000 2,000 1,000 2,500 2,000 225,000 30,000 373,500 1,915,429 1,915,429 4,936,109 1,010,380 17-104 VISIT NEWPORT BEACIA CALIFORNIA FY2020-21 ATTACHMENT C VISIT NEWPORT BEACH, INC. LEISURE MARKETING (TOT) PERFORMANCE STANDARDS REPORT JULY 2020 -JUNE 2021 Due to the devasting health and economic ramifications of the COVID-19 Global Pandemic, Visit Newport Beach, Inc. and its global leisure/tourism destination -marketing channels shifted dramatically in FY2021 to meet the immediate needs of our tourism -related businesses, hotels and resorts. All international inbound travel into the United States and Newport Beach halted, and stay-at-home orders and other travel bans/closures severely affected our local tourism economy. Visit Newport Beach closed all of its international public relations and travel -trade agencies in Canada, United Kingdom, Middle East and China. With significant budget reductions due to our closed hotels and decreased hotel occupancy, Visit Newport Beach reallocated limited incoming revenue to a completely new in-state, regional marketing strategy to drive travel and tourism to Newport Beach from nearby feeder markets in California—specifically Los Angeles, Inland Empire, Palm Springs and San Diego. Visit Newport Beach launched and executive three large-scale campaigns to generate incremental visitors and spending during very targeted need period for Newport Beach hotels, resorts and businesses. Visit Newport Beach launched a Summer 2020 Leisure Campaign, Fall 2020 Expedia Campaign with Visit California & Winter/Spring 2021 Stay + Play Campaign. Additional local campaigns such as S.H.I.P. Shape and public/media relations, digital marketing, email marketing, website, search - engine marketing and social media campaigns continued year-round. CONTINUE TRADITION - C ! y 7' z NE:WP0Rl'0 .� BEACH MMep A SUMMER Tp ADiTron ME DDnT.— TSADi Tion. SUMMER 2020 LEISURE AD CAMPAIGN PERFORMANCE ADVERTISING IMPRESSIONS VIDEO COMMERCIAL COMPLETIONS VIDEO COMMERCIAL COMPLETION RATE CLICK-THRU RATE ROI PER MEDIA $ SPENT 13,100,000 1,600,000 95% 0.7% $15.05 17-109 V� VISIT NEWPORT BEACH EXPLORE YOUR COASTAL SIDE IN NEWPORT BEACH EXPLORE YOUR COASTAL SIDE IN NEWPORT BEACH EXPEDIA FALL 2020 LEISURE CAMPAIGN Ex;, O..�:...p m -.o. nn..��o<.�.�.a.�. O n�a.n m�+�•.o-.s.. w.em•v..r•-+.. ���.« ��.• nAoa DRESS UP AND GET OUT IN NEWPBBT BEACH CALLING ALL CALIFORNIANS h ,. nl` Am 91 r SUPPORT YOUR STATE BY VACATIONING IN NEWPORT BEACH. SUPPORT YOUR STATE BY VACATIONING IN NEWPORT BEACH. , !mmo! STAYS P LAY. STAY -d P LAY . STAYS P LAY IN NEWPORT BEACH IN NEWPORT BEACH IN NEWPORT BEACH STAY -./ P L AY IN NEWPORT BEACH START PLANNING f1 0 START PLANNING f1 0 START PLANNING 1f WINTER/SPRING 2021 LEISURE AD CAMPAIGN PERFORMANCE ADVERTISING IMPRESSIONS SOCIAL REACH WEBSITE LANDING PAGE SESSIONS CLICK-THRU RATE SOCIAL MEDIA IMPRESSIONS 16,883,271 270,346 32,538 0.06% 1,082,409 !N�`"I �F INE SINE WE ARE AND DINE LOCAL SHIPSATHISH04SODNSAFE, HEALTH. INIdIATIUE, ALEDGE,WE ARE� I SHAPE NEWPORT BEACH BUSINESSES S.HIP ARE COMMITTED TO PROVI.IN6 A SAFE PLACE FOR THE [:[]MMVNITI' AND VISITORS. 1 � SAFE. HEALTH. INITIATIVE. PLEDGE. T'tnNKww `F Vi$ITNEWPORTBEACH.00N1 APE WE ARE SHAPE SHIP 85JaaonT OF S�H�I.P LOCAL �°L SHAPE ` N£BUY rrE9EE5 ti w7.7� ATTACHMENT D 0 NEWPORT BEACH & CnMPANY Newport Beach & Company FY2022 Budget Operating Revenue This amount less the TBID Revenue 61010 - Salaries and Wages marketing fee of $108,000 61015 - Bonuses and Commissions 29,318 equals TOT NB&Co Fees 41010 - VNB Inc. Income 2,023,429 (468001) 41015 - Community Marketing Income 174,180 61050 - Temporary Personnel/Interns 41020 - Boat Parade Venture Income 25,000 983,535 41021 - NB Boat Parade Sponsorships 30,000 61110 - Medical Insurance 41040 - Annual Marketing Outlook Income - 360 Total Revenue 2,252,609 61125 - Vision Insurance Total Operating Revenue 2,252,609 Expenses Salary and Wages 61010 - Salaries and Wages 840,882 61015 - Bonuses and Commissions 29,318 61020 - Auto Allowance 16,560 61030 - Payroll Tax Expenses 67,275 61040 - Accrued PTO Expense 24,000 61050 - Temporary Personnel/Interns 5,500 Total Salary and Wages 983,535 Benefits 61110 - Medical Insurance 79,452 61115 - Benefit Administrative Fees 360 61120 - Dental Insurance 6,163 61125 - Vision Insurance 971 61130 - Life and Disability 11,425 61140 - Retirement Plan (401k) 68,213 61150 - Flexible Spending Plan 1,700 61160 - Employee Engagement Benefit 10,000 Total Benefits 178,284 General and Administrative Expenses Operating Expenses Operating Expenses 64100 - Office Supplies 16,000 64101 - Kitchen Supplies 3,600 64110 - Office Equipment Leases 4,637 17-113 0 NEWPORT BEACH & COMPANY Newport Beach & Company FY2022 Budget 64115 - Office Equipment (non-deprec) 9,500 64116 - Studio Equipment - 64120 - Equipment Repairs & Maintenance 32,644 64125 - Computer Software (non-deprec) 18,266 64130 - Voice and Data - Office 9,900 64135 - Telephone - Mobile 9,480 64136 - Cable Expenses 1,000 64140 - Postage 250 64145 - Shipping Charges 450 64150 - Bank Fees - 64160 - Membership Dues 17,000 64165 - Subscriptions 1,600 64170 - Team Meetings 21,500 64175 - Governance Meeting Expenses 17,500 64180 - Education 32,500 64190 - Business Licensing and Fees 1,000 64300 - Depreciation Expense 22,000 64600 - Business Meals/Entertainment 5,600 Total Operating Expenses 224,427 Office Lease and Expenses 62100 - Office Lease 501,692 62110 - Office Repairs and Maintenance 8,600 Total Office Lease and Expenses 510,292 Insurance 63100 - General Liability Insurance 1,220 63200 - Workers Compensation Insurance 3,250 63300 - Board of Directors Insurance 2,200 63400 - Professional Liability Ins 2,350 Total Insurance 9,020 Professional Fees 64203 - Recruiting Fees - 64205 - Payroll Processing Service 5,300 64206 - NBTV Independent Contractors 194,000 64201 - Audit Fees 12,000 64202 - Tax Preparation Fees 3,000 64204 - Legal Fees - Total Professional Fees 214,300 17-114 0 NEWPORT BEACH & COMPANY Newport Beach & Company FY2022 Budget Travel Expenses 65100 - Airfare 10,000 65200 - Accommodations 15,000 65300 - Meals 3,000 65400 - Transportation Costs 3,000 65405 - Mileage ($0.535/mile 2017) 1,000 65500 - Other Travel Costs 750 Total Travel Expenses 32,750 Total General and Administrative 990,789 Advertising Expenses 66123 - Promotional Client Gifts - 66205 - Photography/Video Production - 66212 - Community Sponsorships 15,000 Total Advertising Expenses 15,000 Marketing Expenses Community Relations 67103 - Community Partner Events 21,000 67104 - Annual Marketing Outlook Event 30,000 67108 - Company -Sponsored Events 5,000 67111 - Community Partnerships - Total Community Relations 56,000 Marketing Collateral 67308 - Annual Report 6,000 67309 - Marketing Plan 6,000 67311 - Collateral Production Expenses 2,000 Total Marketing Collateral 14,000 Digital Marketing 67502 - Website Maintenance 5,000 Total Digital Marketing 5,000 Communications/Public Relations 67604 - PR/Media Consulting Fees 10,000 Total Communications/Public Relations 10,000 Total Marketing Expenses 85,000 Total Expenses 2,252,609 Net Income - 17-115 0 NEWPORT BEACH & COMPANY Newport Beach & Company FY2022 Budget 17-116