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Home My WebLink About12 - Visit Newport Beach, Inc. FY 2023 and FY 2024 Destination BusinessQ �EwPpRT CITY OF s NEWPORT BEACH `q44:09 City Council Staff Report July 26, 2022 Agenda Item No. 12 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Tara Finnigan, Assistant City Manager - 949-644-3001, tinnigan@newportbeachca.gov PREPARED BY: Melanie Franceschini, Management Analyst mfranceschini@newportbeachca.gov PHONE: 949-644-3028 TITLE: Visit Newport Beach, Inc. FY 2023 and FY 2024 Destination Business Plan and Budget, and FY 2022 Performance Standards Report h\ 3� d:7±Tip 6 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) 2023 and FY 2024 Destination Business Plan and Budget for the Council's review and VNB's FY 2022 Performance Standards Report for the City 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 2023 and FY 2024 Newport Beach & Company Destination Business Plan; c) Receive and file the Visit Newport Beach, Inc. Leisure Marketing (TOT) FY 2022 Performance Standards Report; and d) Review and approve the Visit Newport Beach, Inc. Leisure Marketing (TOT) FY 2023 and FY 2024 Budgets. 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. 12-1 Visit Newport Beach, Inc. FY 2023 and FY 2024 Destination Business Plan and Budget, and FY 2022 Performance Standards Report July 26, 2022 Page 2 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 19, 2022 to approve the Destination Business Plan and Budget (Attachment A and B) for FY 2023 and FY 2024. 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 as the industry continues to recover from the effects of the COVID-19 pandemic. All required documents were received by the City in July and are attached for the Council's review. 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 $5,793,750 in TOT funding in FY 2023 and $5,844,877 in TOT funding in FY 2024 (Attachment B). The FY 2023 estimate is approximately 5% lower than the City's estimate of $6,099,964, as included in our FY 2022-23 General Fund budget, due to VNB's conservative approach to budgeting revenue. 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). ATTACHMENTS: Attachment A — FY 2023 and FY 2024 Newport Beach & Co. Destination Business Plan Attachment B —Visit Newport Beach, Inc. Leisure Marketing (TOT) FY 2023 and FY 2024 Budgets Attachment C — Visit Newport Beach, Inc. Leisure Marketing (TOT) FY 2022 Performance Standards Report 12-2 ATTACHMENT A U N LW PORT BEACH & COMPANY FISCAL YEARS 2023 & 2024 NEWPORT BEACH &COMPANY DESTINATION BUSINESS PLAN A FRAMEWORK FOR TOURISM ECONOMIC RECOVERY & ELEVATED LUXURY PRODUCTS & EXPERIENCES 12-3 TABLE OF CONTENTS INTRODUCTION 04 EXECUTIVE SUMMARY 05 NEWPORT BEACH & COMPANY OVERVIEW AND AUDIENCE OVERVIEW 06 NEWPORT BEACH & COMPANY THREE-YEAR STRATEGIC PLAN 09 NEWPORT BEACH & COMPANY COVID-19 RESPONSE & ACTION PLAN ■ AUDIENCE -BASED BUSINESS PLANS 22 LEISURE TRAVELER AUDIENCE BUSINESS PLAN 36 MEETING PLANNER AUDIENCE BUSINESS PLAN 46 LOCAL COMMUNITY AUDIENCE BUSINESS PLAN 54 67 CORPORATE AUDIENCE BUSINESS PLAN DESTINATION RESEARCH, FORECASTS & BUSINESS INTELLIGENCE - LEISURE & MEETINGS BUSINESS -UNIT PLANS 98 108 112 116 120 122 VISIT NEWPORT BEACH INC. - LEISURE MARKETING VISIT NEWPORT BEACH INC. - GROUP SALES DINE NEWPORT BEACH ENTERPRISE NEWPORT BEACH CELEBRATE NEWPORT BEACH VIDEO NEWPORT BEACH GOVERNANCE 130 131 131 132 134 136 140 EXECUTIVE COMMITTEE & BOARD OF DIRECTORS TBID BOARD OF DIRECTORS MARKETING COMMITTEE NEWPORT BEACH & COMPANY TEAM NEWPORT BEACH & COMPANY ACCOLADES INDUSTRY TERMS REFERENCES Lj IF `„�, '. �, c ,�! •r: _sc• _ •! }` .r t w lir_ �� .�-�J -.� --s-� ti � ,.��,;'� '�...�'� +.IF�r�li� e' _ t':� t �•�� '°- "� _' 1 ^"ell b'' arc 7r� • l.. a•_- - 1 { _ _ Or Maw '�wl � .� �� __ "L �S''.�i� }n�f,••'�. f'Y �� f� ~s •, r,•��~ �w�� ..l� l�l i"'�eei_ '�,* � Y P-• i ' �, 1 - F�� ' r .. � -- � —.►►` _ 1$•��'��+F �. ter ~-- -- INTRODUCTION x :frog - 04 EXECUTIVE SUMMARY 05 NEWPORT BEACH & COMPANY OVERVIEW AND AUDIENCE OVERVIEW 06 NEWPORT BEACH & COMPANY THREE-YEAR STRATEGIC PLAN 09 NEWPORT BEACH & COMPANY COVID-19 OESPONSE &ACTION PLAN FISCAL YEARS 2023 & 2024 DESTINATION BUSINESS PLAN a RF/ �/FNC N IVVj�� F, m RgrF, w o pi 005� b o.Com 3 12-5 EXECUTIVE SUMMARY On the precipice of a new biennial business cycle, Newport Beach & Company reflects on the past cycle before entering the new two-year period. At this watershed point as we develop the new two-year Newport Beach & Company Destination Business Plan, there are three words when combined encapsulate our vision, mantra, spirit, and rallying cry for tackling the challenges and opportunities ahead over the next two fiscal years across six business units: RENAISSANCE. RESILIENCE. REINVIGORATE. At this pivotal moment, we look back at the past two years before we look ahead. COVID-19 reshaped the global economic landscape with the tourism -and -hospitality industry experiencing some of the greatest disruptions among impacted industries, worldwide including here in Newport Beach. Hotel Occupancy Rates were 15 percent of 2019 levels, while spending levels within Newport Beach dropped to 39 percent of 2019. Recognizing COVID-19's prolonged economic impact on the city and local businesses, Newport Beach & Company pivoted quickly and effectively to offset pandemic repercussions by implementing nearly 20 brand new programs, campaigns, tactics, and initiatives in real time. And at this moment, Newport Beach has withstood the storm as hotel -occupancy levels are at 82.8 percent of 2019 levels and continue to trend in a positive direction while spending levels for year-to-date 2022 have surpassed 2019 at 162 percent. Average daily rate (ADR) is out -pacing nearly our entire competitive set, and we expect to fully recover by the end of this year and reach record -breaking heights in hotel occupancy. With the horizon shining brightly, Newport Beach is also proud to enter a new era of reimagined, coastal luxury. Undeterred by challenges, local investors and visionaries are reimagining luxury hospitality starting with the exciting opening of the new VEA Newport Beach, A Marriott Resort & Spa. In summer 2023 Montage International will open Pendry Newport Beach, which will bring even greater casual glamour and sophistication to the destination. And in 2024, the new 80,000-square-foot, four-story RH Newport Beach, The Gallery at Fashion Island, will open with a stunning rooftop, ocean -view restaurant. Additional exciting developments are in the pipeline for opening in 2024 as well. It is the start of a dynamic new chapter for our destination, all fueled by local investor confidence in Newport Beach, resilient leisure traveler spending and a destination brand that commands excellence and higher rates. With the freedom to create and innovate, our hospitality partners are setting a new bar for California coastal luxury in Newport Beach. Newport Beach & Company is also reimagining how we do business in this new COVID-19 era. We are just days away from breaking ground on an office renovation built to represent the Newport Beach brand that will catapult our company into a new era. Newport Beach & Company looks forward to marketing and promoting our unprecedented luxury renaissance powered by resilient staff, partners and community that will reinvigorate our mojo, spirit, and destination brand to new heights in fiscal -years 2023 and 2024. WE'VE ARRIVED, Gary C. Sherwin, APR, CDME President & CEO Newport Beach & Company FY2023 & FY2024 MANTRA & THEME RENAISSANCE: Celebrate our luxury renaissance and tell the story of our exciting new-and-reimagined luxury destination product that will first launch with resort and retail grand openings starting in 2022, 2023 and 2024. Continue to position destination as a luxury product, weaving in all partners throughout Newport Beach. Keywords: Inspire, Celebrate, Educate RESILIENCE: Continue to navigate COVID-19 economic - recovery challenges including staff and deployment shortages, shipping cost overruns, supply chain delays and ever -rising inflation. Ever persistent COVID-19 variants also pose renewed set -backs with mask and stay-at-home mandates. Newport Beach & Company will elevate, educate, and engage our stakeholders and partners to assure we are resilient and always rise to the challenge with smart programming in the face of the uncertainty. Key words: Support, Encourage, Problem -Solve REINVIGORATE: Newport Beach & Company will take the lead in driving and developing new strategies for partners to re-engage key sectors including the group business sector and international leisure markets in the post-COVID-19 world. The team will also continue successful efforts of generating results from targeted campaigns in key domestic local, fly and feeder markets. Key words: Leadership, Innovation, Collaboration Debbie Snavely Chairperson Newport Beach & Company AUDIENCE OVERVIEW 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 Corporate. 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. CORPORATE Newport Beach & Company and Visit Newport Beach staff, executive team, executive committee and board of directors comprised of the destination's hospitality leadership. NEWPORT BEACH & COMPANY NEWPORT BEACH BOARD OF FOUNDATION DIRECTORS501(c)(6) 501(c)(3) FINANCIAL/ ADMINISTRATIVE COMMUNITY TEAM PRESIDENT/CEO LEADERSHIP DEVELOPMENT BRAND MARKETING TEAM 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 and recreation; business improvement districts (BIDs), merchant associations; event organizers; destination marketing organizations; relevant associations; local residents and government officials. VISIT NEWPORT DINE CELEBRATE VIDEO ENTERPRISE BEACH,INC. NEWPORTBEACH NEWPORTBEACH NEWPORTBEACH NEWPORTBEACH ............. : ........... 0 NEWPORT B E AC I-1 & COMPANY IGNITE GLOBAL PASSION FOR NEWPORT BEACH NEWPORT BEACH & COMPANY THREE-YEAR STRATEGIC PLAN Newport Beach & Company is a creative and focused community marketing agency singularly committed to telling the city's integrated brand story. It strengthens all its partners, drives new revenue and enhances Newport Beach's overall vibrancy through powerful storytelling that unites neighborhoods, businesses and individual voices to bring the destination to life. 2023-2025 r CORPORATE•• INNOVATIVE, ENTREPRENEURIAL STEWARDS OF THE NEWPORT BEACH BRAND Newport Beach & Company is a I progressive, dynamic and innovative I marketing organization that brings a results -oriented mindset and forward -looking attitude to the community it serves. Embracing a learning -centered environment, where ideas can develop and be best used for the benefit of its partners, Newport Beach & Company's team is a passionate steward for the ` brand. It is resourceful in creating meaningful marketing programs and services, setting the standard for outstanding destination leadership. A DESTINATION BRAND LEADERSHIP & ASSISTANCE TO KEY STAKEHOLDERS IN CREATING INDIVIDUALLY BRANDED PRODUCTS AND EXPERIENCES. EXPAND DESTINATION PRODUCT 2 MARKETING TO MORE LUXURY AUDIENCES AND ASSIST NON -LUXURY PRODUCTS ON HOW TO CAPITALIZE ON THESE OPPORTUNITIES. CONTINUE TO PROVIDE INNOVATIVE LEISURE AND GROUP MARKETING PROGRAMMING FOR PANDEMIC RECOVERY BY ASSISTING HOSPITALITY BUSINESSES NOT YET RECOVERED IN BOTH BUSINESS AND STAFFING. Respect • Wellness • Integrity Employee Engagement • Learning Knowledge • Adaptability Innovation • Customer and Stakeholder -centric NORPORATE VI BE BOLD. BE SMART. GO BEYOND. Newport Beach & Company aspires to be the national model for outstanding integrated community marketing and brand leadership. As an entrepreneurial leadership organization, it is creative, innovative and professional in building destination awareness both locally and nationally. It strives to do for its partners and stakeholders what they cannot do individually, driving business and economic growth to benefit the entire community it serves. WE WANT TO BE ESSENTIAL TO THE NEWPORT BEACH BUSINESS COMMUNITY. WE DON'T WANT TO BE NICE TO HAVE, BUT ESSENTIAL TO THE SUCCESSFUL OPERATION OF THEIR BUSINESSES. WE STRIVE TO DO FOR OUR STAKEHOLDERS WHAT THEY CANNOT DO FOR THEMSELVES. WE WANT TO PUNCH ABOVE OUR WEIGHT (THINK BIG!) AS A SMALLER DESTINATION COMPETING AGAINST MUCH BIGGER DESTINATIONS ESSENTIALISM GOVERNANCE SYSTEM ENTREPRENEURIAL MINDSET/BUSINESS BRAND CENTERED FUNDING TRANSPARENCY STRUCTURE J • GENERATE DESTINATION DEMAND, OCCUPANCY AND ENHANCED INCREMENTAL SPEND TO POSITIVELY G IMPACT THE COMMUNITY • PROMOTE DESTINATION LUXURY RENAISSANCE • CORPORATE COMMUNITY CONSULTANTS • WE WILL BE THE CITY'S BRAND "CONSULTANT" • DEVELOP MORE CUSTOMIZED AND UNIQUELY NEWPORT BEACH PRODUCT OFFERINGS ENCOURAGE MORE INDIVIDUAL PROPERTY -BRANDED EXPERIENCES BEGIN TO REACTIVATE INTERNATIONAL MARKETS, ESPECIALLY LUXURY CENTERED EXPLORE MORE LARGE-SCALE NEWPORT BEACH BRANDED EVENTS (I.E. NEWPORT BEACH FILM FESTIVAL, NEWPORT BEACH CHRISTMAS BOAT PARADE, ETC.) EXPLORE EVEN MORE WAYS TO ASSIST HOTEL SALES STAFFS WITH KEY INITIATIVES AND PROGRAMMING THAT THEY LOST DURING COVID-19 • REACTIVATE MORE REGIONAL MARKETING OR OPERATIONAL MARKETING PROMOTE DESTINATION'S NEW LUXURY RENAISSANCE MARKET, PROMOTE AND SELL NEW AND RE -IMAGINED LUXURY HOTELS, RESORTS AND RETAIL BUSINESSES. PULL THE NEW BRAND POSITIONING AND IDENTITY THROUGHOUT THE DESTINATION AND ENTIRE COMMUNITY. • ENHANCE SPECIAL -EVENT MARKETING. GROW CORPORATE CONSULTING SERVICES BRAND POSITIONING & IDENTITY CONSULTING SERVICES CUSTOMIZED, UNIQUELY NEWPORT BEACH BRANDED EXPERIENCES (PRODUCT OFFERINGS) CURATE NEW PROPERTY -SPECIFIC EXPERIENCES PRODUCT DEVELOPMENT WITH HOTEL PARTNERS MARKETING SUPPORT & STRATEGY ONGOING ORIENTATION WITH PARTNERS FEATURING PRACTICAL EDUCATIONAL OPPORTUNITIES. ENSURE OUR PARTNERS AND COMPANY GET THE OPERATIONAL FUNDAMENTALS RIGHT. REDEFINE AND ENHANCE NEWPORT BEACH & COMPANY'S COMMUNITY MARKETING MODEL AND GOVERNANCE • ENTREPRENEURIAL/BUSINESS MINDSET • STABLE, RELIABLE FUNDING BRAND CENTERED STRONG GOVERNANCE SYSTEM NEWPORT BEACH & COMPANY ESSENTIALISM BUSINESS -UNIT STRUCTURE TRANSPARENCY WITH STAKEHOLDERS J' FY2023 & FY2024 MANTRA & THEME RENAISSANCE: Celebrate our luxury renaissance and tell the story of our exciting new-and-reimagined luxury destination product that will first launch with resort and retail grand openings starting in 2022, 2023 and 2024. Continue to position destination as a luxury product, weaving in all partners throughout Newport Beach. Key words: Inspire, Celebrate, Educate RESILIENCE: Continue to navigate COVID-19 economic -recovery challenges including staff and deployment shortages, shipping cost overruns, supply chain delays and ever -rising inflation. Ever persistent COVID-19 variants also pose renewed set -backs with mask and stay-at-home mandates. Newport Beach & Company will elevate, educate, and engage our stakeholders and partners to assure we are resilient and always rise to the challenge with smart programming in the face of the uncertainty. Keywords: Support, Encourage, Problem -Solve REINVIGORATE: Newport Beach & Company will take the lead in driving and developing new strategies for partners to re-engage key sectors including the group business sector and international leisure markets in the post-COVID-19 world. The team will also continue successful efforts of generating results from targeted campaigns in key domestic local, fly and feeder markets. Keywords: Leadership, Innovation, rnllahnrntinn 4 From the onset of the pandemic in 2020 to May 2022, Newport Beach & Company and Visit Newport Beach acted swiftly with a two -pronged approach: offset protracted negative economic impact on Newport Beach hotels, restaurants and tourism -related businesses to re -think how to best position Newport Beach as an aspirational lifestyle destination. As the onset of COVID-19 pandemic re -shaped the global economic landscape, the tourism, hospitality, and service industries experienced the greatest disruptions and impact among all industries. This global health and economic crisis thrust Newport Beach and the entire travel industry into unforeseen territory: hotel occupancy rates in the low teens to below 10 percent, the closure of Disneyland° Resorts, convention centers turned into shelters, and triage centers. The meetings, events, and conferences side of the hospitality industry experienced the first and most drastic cuts. Large conventions, events, and conferences were immediately halted or outright cancelled, leaving hotels and meeting planners struggling to understand their contractual "out clauses" for those meetings. NEWPORT BEACH & COMPANY COVI D-19 PANDEMIC RESPONSE & ACTION PLAN YEAR 1 COVID-19 QUARANTINE BEGINS (CA) 2020 CA SCHOOLS CLOSE BLACK LIVES MATTER MOVEMENT JAN FEB MARCH I APRIL FASHION ISLAND VISITOR CENTER CLOSED 3 CONCIERGE EMPLOYEES LAID OFF 1 TOT EMPLOYEE LEFT TO TAKE ANOTHER JOB RtW.GR.KMOFun9«,CE .. VNB IS THE FIRST TO LAUNCH A ONE -STOP DINING HUB: TAKE OUT, CURBSIDE PICK-UP AND DELIVERY UNTIL WE MEET AGAIN EMAIL CAMPAIGN: GROUP SALES BRINGS THE DESTINATION TO THEIR PLANNERS WITH SUPPORTIVE MESSAGING, VIDEO CONTENT, DOWNLOADS AND MORE! 5 TOT EMPLOYEE LAYOFFS 3 TBID EMPLOYEE LAYOFFS 3 TBID FURLOUGHED EMPLOYEES BROUGHT BACK APRIL 1, 2020 MAY 1, 2020 JUNE 1, 2020 #ANCHORDOWN WITH LOVE NB VNB LAUNCHES PUBLIC SUPPORT CONTENT: #ANCHORDOWN, UP-TO-DATE COVID-19 INFORMATION LANDING PAGE, CUSTOM VIDEO AND NEW "WITH LOVE NB" BRAND IDENTITY ■ Lim MAY RE-ENp40F RE ViTnL�ZF. EH�i�.i t.�r 2020-2021 DESTINATION BUSINESS PLAN AND FY2021 BUDGET COMPLETELY REWRITTEN, PRODUCED, PRESENTED AND BOARD -APPROVED IN ONLY ONE MONTH AFTER PANDEMIC BEGINS NB&CO TRANSFORMS THE DESTINATION TO DIGITAL FEATURING SMALL BUSINESSES, LIVE CAMS OF THE BEACHES, LIVE CLASSES (ART DEMOS, COOKING CLASSES, EDUCATIONAL, WORKOUT CLASSES), PARTNER SOCIAL TAKEOVERS, ZOOM BACKGROUNDS, QUARANTUNES PLAYLIST AND MORE! HOAG DONATION: NEWPORT BEACH MARRIOTT HOTEL & SPA AND NB&CO PARTNERSHIP; DONATION OF 8,000 ROLLS OF TOILET PAPER TO 500 FRONTLINE HOAG WORKERS SUGAR N SPICE PARTNER APPRECIATION INITIATIVE: GROUP SALES SHOWED THEIR SUPPORT OF TBID HOTEL STAFF WITH AN ONSITE VISIT, DELIVERING FROZEN TREATS AND BOOSTING MORALE VISIT SAFE LEISURE MARKETING CUSTOM VISIT SAFE PSA GRAPHICS AND CONTENT CREATED AND ROLLED OUT NEWPORT BEACH & COMPANY KEY PANDEMIC METRICS COVID-19 EVENT © ADMINISTRATION NEIPORT RESPBEACH & ONSEMPAHY 0 LEISURE MARKETING INDOOR DINING MASK MANDATE AND BARS BEGINS IN CA ORDERED TO CLOSE FOR 2020 SECOND TIME JUNE SUMMER RECOVERY CAMPAIGN FILMED A SUMMER COMMERCIAL AND EXECUTED MULTI -TOUCH AD CAMPAIGN NET INCOME OF $942,097 for TBID JULY I AUG ECONOMIC DASHBOARD LAUNCHED WEEKLY ECONOMIC INSIGHTS NEWSLETTER WITH HOSPITALITY PERFORMANCE AND ECONOMIC FIGURES it MEET SAFELY VIDEO COLLECTION: GROUP SALES PRODUCES CUSTOM VIDEO AND SOCIAL CONTENT CREATED TO ENCOURAGE A SAFE RETURN TO MEETINGS WA$T HERE 9EHI40yTHE LINE NET INCOME OF TBID PROPERTY $698,319 SOCIAL DISTANCE GRAPHICS: for TOT GROUP SALES PRODUCED, DISTRIBUTED AND DONATED FLOOR DECALS, ELEVATOR SIGNS AND FITNESS EQUIPMENT STICK- ERS, ALONG WITH BRANDED "TO -GO" FOOD STICKERS FOR INTERNAL DINING OPTIONS GROUP SALES NEW CA STAY -AT- H O M E ORDERS CA HITS 1M COVID-19 VACCINATIONS CASES BEGIN SEPT OCT NOV I DEC +4 r, r wi d NEWPORT BEACH RESTAURANT MONTH FIRST -EVER RESTAURANT MONTH DEBUTS, DROVE THOUSANDS OF DINERS THROUGH THE DOORS OF LOCAL RESTAURANTS. SAFE AND INNOVATIVE "DRIVE IN AND DINE" MEDIA EVENT HELD LAUNCHED A FALL EXPEDIA CAMPAIGN SPOTLIGHTS DESTINATION AND HOTEL PARTNERS MEDIA EVENT HELD NB COMMUNITY LEADERS ROLL OUT SAFE HEALTH INITIATIVE PLEDGE TO ENCOURAGE BUSINESSES TO CONTINUE SAFE PRACTICES THROUGH WINTERI SEASON V � HOASSLIDAY P HOLIDAY PASS LAUNCHED FIRST -EVER HOLIDAY PASS WHERE VISITORS ACCESSED HOLIDAY PROMOTIONS FROM OVER 50 BUSINESSES NEWPORT BEACH & COMPANY COVI D-19 PANDEMIC RESPONSE & ACTION PLAN YEARS 2 & 3 2021 CA OPENS WITH NO CAPACITY/RESTRICTIONS GOVERNOR ANNOUNCED THE VACCINE REOPENING OF CA TOURISM AVAILABLE INDUSTRY AND LED WITH THE TO 16+ DREAM VACATIONS PACKAGES JAN FEB MARCH APRIL AN�HQRNlt3 RESTAURANTS 4 ANCHOR NB RESTAURANTS CAMPAIGN DINE LOCAL. SUPPORT LOCAL. CAMPAIGN CREATED WITH A CALL TO COMMUNITYTO SUPPORTLOCAL DINING INDUSTRY a STAY + PLAY HOTEL SUPPORT CAMPAIGN DIGITAL CONTENT CAMPAIGN VIDEO PACKAGE CREATED FOR EACH NB HOTEL LOCAL TASTEMAKERS CAMPAIGN DIGITAL CONTENT CAMPAIGN CREATED TO SPOTLIGHT LOCAL RESTAURANTEURS LOVE MEETINGS CAMPAIGN GROUP SALES KEEPS MEETINGS SAFE BY SENDING GIFT PACKAGES TO LOCAL PLANNERS WITH BRANDED VNB MASKS AND PERSONALIZED OUTREACH MESSAGES EXPEDIA SPRING CAMPAIGN LAUNCHED A SPRING EXPEDIA CAMPAIGN WHICH SPOTLIGHTS VISITATION FOR DESTINATION AND HOTEL PARTNERS 1,000 REASONS TO MEET IN NEWPORT BEACH PROMOTION OFFERED A $1,000 AMEX GIFT CARD FOR PROGRAMS SOURCED BY 7/15/21 AND ACTUALIZED BY 12/31/21 MEETINGSNB.COM SITE LAUNCH COMPLETELY REIMAGINED SITE. FEATURES INCLUDE PARTNER LISTINGS WITH FLOORPLANS AND CAP CHARTS APPROPRIATE FOR POST -PANDEMIC PLANNING, EXPANDED MEDIA LIBRARIES, VIDEO CONTENT AND MORE! MAY JUNE ' A MID -WEEK SUMMER CAMPAIGN CUSTOM VIDEO, ADS AND CONTENT CREATED TO DRIVE MID -WEEK HOTEL OCCUPANCY MIC DENVER FIRST TRADESHOW WITH BOOTH PRESENCE SINCE BEGINNING OF PANDEMIC. A TOTAL OF 6 SHOWS WERE ATTENDED BETWEEN 2020 AND 2021 NEWPORT BEACH & COMPANY KEY PANDEMIC METRICS COVID-19 © ADMINISTRATION GROUP SALES NEWPORT RESPOEACH NSE LEISURE ONSE. LEISURE MARKETING OMNICRON VARIANT DELTA VARIANT COVID-19 BOOSTER AVAILABLE JULY AUG SEPT OCT NOV DEC C., ORANGE COUNTY skwm . • 4FGRN1A OIL SPILL RECOVERY CAMPAIGN ORANGE COUNTY COASTAL TOURISM ALLIANCE FORMED WITH OC DMOs; RESOURCE LANDING PAGE BUILT I NEWPORT BEACH OBFAIR Da�� VNB CREATES FIRST -EVER JOB FAIR TO ASSIST WITH HOSPITALITY LABOR SHORTAGE NEW TRADESHOW BOOTH RETURN TOIMEX WITH REBRANDED TRADESHOW BOOTH LOOK -AND -FEEL AND FULLY -STAFFED TEAM 2022 JAN 1,591 MEDIA 192 PLACEMENTS NEWSLETTERS 238 BLDGS 76 1 ^y WEEKLY INSIGHTS NEW CAMPAIGNS EMAILS CREATEDAND LAUNCHED MASK MANDATE ENDS IN CA FEB MARCH LEVEL UP PROMOTION FIRST -EVER THIRD -PARTY PROMOTION OFFERING ADDITIONAL REWARDS DIRECTLY TO THE PLANNER l APRES SKI SEA WINTER CAMPAIGN ROBUST AD CAMPAIGN EXECUTED IN STRATEGIC DRIVE MARKETS REswAAIERANT �� NEWPORT BEACH APAILI9-MAY2, 2021 RESTAURANT WEEK TWO -WEEK DINE LOCAL. ' SUPPORT LOCAL. NBRW NEWPORT BEACH CHRISTMAS BOAT PARADE PREMIERS WITH DIGITAL PASS FOR DINERS RETURNS WITH MEDIA EVENT AND FIRST -EVER HOLIDAY MARKET ON OPENING NIGHT P 1_ gyp, w I rti L� , FLOAT WITH US SPRING CAMPAIGN MULTI -CHANNEL CAMPAIGN WITH BROADCAST, OOH AND DISPLAY ADVERTISING VNB IS IN THE SPOTLIGHT WITH CUSTOM CINEMATIC COMMERCIAL AIRED DURING OSCARS@ NEWPORT BEACH & COMPANY DEVELOPED THREE PHASES FOR COVI D-19 I M PACT RECOVERY Newport Beach & Company, Visit Newport Beach, and its business -units sprang into action —protect our staff, inform visitors and meeting planners, preserve the budget, renegotiate contracts, execute contract "out clauses," filter out false information and rumors, close international offices and Fashion Island Visitor Center, write a new COVID-19 Business Plan and sadly furlough or reduce staff, reduce salaries, cut bonuses and temporarily remove non -essential benefits. These swift actions led to a financially solvent organization that led its peers in average daily rate and, in many cases, occupancy rates during some of the most difficult circumstances. The unprecedented global pandemic brought ever -changing restrictions, closures, mask mandates, beach closures, capacity limits, quarantines, and travel bans. These orders and restrictions led to traveler confusion, cancellations and introduced many new visitor concerns. During that first summer of the pandemic, racial tensions escalated as the Black Lives Matter movement went global, including marches in Corona del Mar and Balboa Peninsula following the murder of George Floyd by Minneapolis police officers. Protests, combined with the politicization of masks, an incumbent president facing impeachment, and a chaotic election season, all combined for a very tricky and tenuous messaging tight rope for Newport Beach & Company. In early Spring 2021, widespread vaccine distribution enabled state and local municipalities to lift some travel restrictions, which raised hope of a new normal and released pent-up travel demand. Summer 2021 served to be a stronger -than -expected leisure travel season for Newport Beach. Carefully crafted messaging and promotional -driven marketing, 365-days-a-year ad campaigns, and safely attended tradeshows became the standard as Newport Beach & Company started its new fiscal year during the pandemic. However, variants like Delta and Omicron became more than speed bumps and nearly shut down many tourism and hospitality sectors in January 2022. As many Americans begin receiving their third vaccine booster shots, this new normal provides hope for the next few years. Still, glimmers of an economic slowdown begin to surface through slower home sales, rising inflation, and the constant threat of more lethal and communicable variants. L4j RESPOND Manage revenue continuity with innovative marketing tactics that drive business to Newport Beach within the mandated Federal and State regulations. RECOVER Re -imagine marketing with search for new opportunities to build resilience to navigate future shocks while becoming stronger. S140,000 S120,000 $100,000 O No S80,000 Z � $60,000 Q N S40,000 S20,000 0 2020 RESPONSE TO COVID-19 IMPACT IN NEWPORT BEACH WAS IMMEDIATE • MASK MANDATE BEGINS • SUMMER CAMPAIGN BEGINS . DRIVE & DINE 90.0% 80.0% 70.0% OF 60.0% JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC IIII OCCUPANCY /VACCOMODATIONS ^/ RETAIL ^00' SPECIALTY RETAIL ^0/ DINING 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 0 0 0 D Z 0 n M m SOURCES: STR, ZARTICO RECOVERY IN 2021 WAS ACHIEVED THROUGH STRATEGIC RESILIENCE USING AGILE AND DECISIVE SALES AND MARKETING s300,000 $250,000 $200,000 ;TAY & PLAY BEGINS r $150,000 N0 O 2020 PEAK SPEND Z V CACn w $100,000 THRIVE Plan and execute $50,000 imaginative marketing to expand and 0 amplify success in the "new normal" RESTAURANT WEEK BEGINS EXPEDIA SPRING CAMPAIGN BEGINS SUMMER CAMPAIGN BEGINS 7 CHRISTMA: 80.0% BOAT PARADE 70.0% 0 0 60.0% Z n 50.0% D 40.0% 30.0% 20.0% 10.0% 0.0% JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC OCCUPANCY ^/ACCOMODATIONS 0-V RETAIL V SPECIALTY RETAL /✓DININI= SOURCES: STR, ZARTICO NEWPORT BEACH THRIVED THROUGH AN UNDERSTANDING AND ANSWERING OF DEMAND SIGNALS 300000 80.0% - 250000 70.0% 60.0% 200000 50.0% 150000 40.0% 30.0% - 100000 20.0% 50000 10.0% 0 0.0% 2019 2020 2021 2022 AVG: JAN-DEC AVG: JAN-DEC AVG: JAN-DEC AVG: JAN-MAR 1I111 OCCUPANCY /✓ACCOMODATIONS ^/ RETAIL /✓ SPECIALTY RETAIL /-/ DINING SOURCES: STR, ZARTICO .............................................................................................................. Category spend is outpacing 2019 levels Occupancy rates are trending in a positive direction with strong run rates based on 4Q2022 2022 run rates reflect continued pace of increased spend and Occupancy Rates (%) SUCCESS DURING RESPONSE AND RECOVERY CAN ALSO BE FOUND IN HOTELS 300 250 200 150 100 6Yl] 0 �°b N°� o) N°) 01 Off' cy0 c10 p cy0 O O +� O'� O O O pti O Off' Off' p�' O O`1' Off' Off' >Q�ry Query PJti >5V�0�� >Q��L QRry PJti >J�� 5��ry �OJry >Q�ry Q�� P,ti NO OCCUPANCY RATE No) i REVPAR 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% The transition of COVID-19 from pandemic to endemic has created a new normal for Occupancy, ADR and Rev PAR: • Lower Occupancy Rates (%) in January may be attributed to new COVID-19 variants for 2 years running. • Although the latter half of 2020 reflected a muted recovery, 2021 established an increased trend of higher than 2019 ADR. • RevPAR is moving at a slower pace than ADR, but the progress continues to move in a positive direction SOURCES: STR, ZARTICO T� 9 C 0 •AUDIENCE —BASED BUSINESS PLANS 22 LEISURE TRAVELER AUDIENCE BUSINESS PLAN 36 MEETING PLANNER AUDIENCE BUSINESS PLAN 46 LOCAL COMMUNITY AUDIENCE BUSINESS PLAN 54 CORPORATE AUDIENCE BUSINESS PLAN 67 DESTINATION RESEARCH, FORECASTS & BUSINESS INTELLIGENCE — LEISURE & MEETINGS V. A:�' � . 'sI A . ` e'i:� �'• fir.:`• . . �' a • 4 FIT 30 °o 0 RFNgI RF SqN� N o R sly/F F• V/ N F/N CFi m o GpRq�. w F. S oti� '091 o0S b 18 FISCAL YEARS 2023 & 2024 DESTINATION BUSINESS PLAN NEWPORTBEACHANDCO.COM 19 12-13 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. AUDIENCES OVERVIEW 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 and recreation; business improvement districts (BIDs), merchant associations; event organizers; destination marketing organizations; relevant associations; local residents and government officials. CORPORATE Newport Beach & Company and Visit Newport Beach staff, executive team, executive committee and board of directors comprised of the destination's hospitality leadership. 20 NEWPORTBEACHANDCO.COM 21 12-14 LEISURE TRAVELER AUDIENCE FUTURE MAP S.W.O.T ANALYSIS STRENGTHS NATURAL RESOURCES • Newport Harbor/Beaches • Crystal Cove State Marine Conservation Area • Back Bay - local estuary YEAR-ROUND OUTDOOR WEATHER • Biking/Hiking • Boating/Kayaking • Parasailing/Surfing NEW AND REVITALIZED PROPERTIES • VEA Newport Beach, A Marriott Resort & Spa • Pendry Newport Beach • Ritz -Carlton Residences • Restoration Hardware 16 4%% 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 LIMITED NATIONAL/INTERNATIONAL AWARENESS VISITOR OFFERINGS • Award -winning hotels and resorts • 450 Restaurants, Celebrity chefs • High -end, unique retail and boutiques, including Fashion Island and Lido Marina Village • World-renowned events • Engaging activities for all ages • Near world -class attractions GOVERNMENT & COMMUNITY DEVELOPMENT • Safe community • Well -maintained infrastructure • Diverse neighborhoods • Clean, efficient airport (SNA) • Moderate distance from LAX, LGB and ONT OOG____0 OPPORTUNITIES EXPANDED VISITOR MARKETS • Second -and Third -tier domestic markets • International efforts • Niche audiences • Business/Frequent Individual Traveler (FIT) LEISURE / SALES PARTNERSHIPS STATE AND NATIONAL TOURISM MARKETING EFFORTS ACCLAIMED EVENTS VISITING FRIENDS AND RELATIVES (VFR) TRAVEL CONSUMER/TRAVEL SENTIMENT TOWARD TRAVEL NEW TRAVEL TRENDS SHARING ECONOMY TEMPERATE COVID-19 RESTRICTIONS VERSUS LOS ANGELES VISITOR -TRANSPORTATION OPPORTUNITIES (TROLLEY) �� THREATS WEATHER AND ENVIRONMENTAL HAZARDS COASTAL COMPETITION/NATIONAL COMPETITION ECONOMIC UNCERTAINTY TRAVEL BANS, LAPTOP BANS, VISA APPROVALS, IMMIGRATION ISSUES 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/Quarantines • Travel Bans on international travel ECONOMIC INFLATION OR STAGNATION WORKFORCE: COMPETITIVE SALARIES AND LIMITED STAFF ORANGE COUNTY/HUNTINGTON BEACH PERCEPTIONS/ MISPERCEPTIONS INTERNATIONAL CURRENCY EXCHANGE RATE FLUCTUATIONS POLITICAL UNCERTAINTY/INSTABILITY LEISURE TRAVELER AUDIENCE BUSINESS OBJECTIVES Tourism plays a vital role in the Newport Beach economy via its positive impact on employment opportunities, income generation, infrastructure development and improvement in social services such as telecommunications and banking services. Visitors to Newport Beach spend significant dollars at hotels, restaurants, attractions, retail and local businesses making tourism one of the purest and most lucrative forms of economic development. As we pivot as an organization to new leisure marketing challenges and opportunities, Newport Beach & Company looks forward to generating incremental visitor spending by emphasizing the luxury renaissance in our hotel, resort, and retail product, while promoting and marketing our resilient partners, hotels, local investors and residents that will reinvigorate our mojo, spirit and results as destination marketers in fiscal years 2023 and 2024. Newport Beach & Company will fully utilize its cross -functional leisure traveler marketing to accomplish the objectives set forth in this plan. Marketing, communications, advertising, digital, media relations and meetings services will leverage their relationships to work together to keep Newport Beach at the forefront of travel trends and drive incremental visitation and spend to Newport Beach. By leveraging all of the marketing team's resources, the cross -departmental team developed this integrated business plan for the leisure traveler customer segment where objectives are quantifiable goals, strategies are executed to objectives through imaginative marketing, and tactics are projects that support overarching strategies. OBJECTIVE 1 Q GENERATE INCREASED LEISURE TRAVEL SPEND OBJECTIVE 2 �``� SPARK A PASSION FOR NEWPORT BEACH S-,1 =3t OBJECTIVE 3 GO GLOBAL OBJECTIVE 4 GO DIGITAL 70, STRATEGY 1: OBJECTIVE 1 - LEISURE TRAVELER GENERATE INCREASED LEISURE TRAVEL SPEND IMPLEMENT MULTI -CHANNEL MARKETING EXECUTIONS TARGETING LEISURE TRAVELERS TO GENERATE AT LEAST $40M IN ECONOMIC IMPACT TO NEWPORT BEACH VIA HOTEL, SHORT-TERM RENTALS, RETAIL, RESTAURANTS AND OTHER VISITOR -SUPPORTED BUSINESSES. Re -imagine marketing to develop integrated multi -media campaigns that highlight Newport Beach as a desired destination. Utilize quantitative and qualitative data to develop highly targeted and cohesive marketing campaigns to convert consumers to Newport Beach overnight visitors. TACTICS: • Plan and execute imaginative marketing executions that will increase reach and frequency of Newport Beach brand as a desired destination. • Optimize media placement using industry resources for strategic placement of messaging to new and existing Newport Beach leisure targets. • Ensure all marketing creative encourages visitors to travel mid -week, specific holiday and slower periods when Newport Beach hotels and resorts need business the most. • Leverage media relationships to spread message through media sources while promoting participating partners. • Elevate marketing execution with test marketing and by prioritizing and tiering feeder markets. • Plan quarterly marketing calendar to guide strategy, messaging and timing of all tactics. STRATEGY 2: Leverage organic social media to increase reach to target audience TACTICS: • Plan and execute highly targeted influencer marketing to coincide with paid media campaigns to generate increased earned media exposure and boost brand awareness. • Leverage Newport Beach & Company owned digital assets to extend customer engagement. • Deploy stimulating and compelling content to advance search engine optimization (SEO) for higher results ranking. • Strengthen customer engagement with useful and stimulating content. STRATEGY 3: Convert day-trippers to overnight guests TACTICS: • Expand marketing to feeder markets leveraging proximity to John Wayne Airport to convert awareness to overnight visitation • Develop packages with hotel, retail, and dining partners to offer vacation packages during need periods. • Include new destination features in media messaging to create emotive desire to stay. OBJECTIVE 2 - LEISURE TRAVELER OBJECTIVE 3 - LEISURE TRAVELER SPARK PASSION FOR GO GLOBAL N E W PO RT BEACH UNCAP NEWPORT BEACH'S GROWTH POTENTIAL WITH INCREASE BRAND AWARENESS FOR NEWPORT BEACH AND ITS INTERNATIONAL MARKETING LUXURY RENAISSANCE THROUGH EMOTIVE AND ACTION -DRIVEN STRATEGY 1: INITIATIVES THAT INCREASE BRAND AWARENESS AND VISITATION Promote Newport Beach's Luxury Renaissance through Targeted Marketing, Content, Advertising and all Communications TACTICS: • Leverage emotive and visual creative within appropriate media channels that will best showcase Newport Beach and its new luxury hotel, resort and retail partners. • Utilize revised demographic profile and elevated personas in all advertising plans to reach ultra -high net worth travelers. • Understand awareness pain points and address within creative with visuals and language. • Develop smaller marketing plan targeting the luxury traveler and luxury travel agent partner who best matches our new luxury product offering. • Host Visit California's Luxury Forum in 2024. • Create clear differentiation from competing destinations to generate interest that will motivate action. • Employ imaginative marketing tactics to increase reach and frequency of paid ads. • Position Newport Beach as a distinctive and unique destination to satiate post COVID-19 pent up desire to travel. • Integrate and leverage new luxury destination assets in communications and collateral. STRATEGY 2: Expand avenues for engagement by leveraging organic social media to extend and heighten brand awareness TACTICS: • Utilize each platform to deliver on its unique purpose and distinct demographics to strengthen customer engagement with Newport Beach. • Communicate brand values to create a personalized connection via regularly scheduled content and messaging. • Deliver brand validation as a desired destination through visual storytelling, updated posts and blogs. • Extend customer engagement and develop followers' invested interaction in Newport Beach brand. • Advance SEO rankings with consistent and steady posts. STRATEGY 3: Digital destination storytelling in paid, owned and earned media to increase brand awareness and destination knowledge TACTICS: • Re -think, re -design and re -ignite VisitNewportBeach.com homepage with reimagined digital storytelling that will guide visitor from interest to action. • Create emotionally impactful content to fuel desire. STRATEGY 1: Prioritize, explore and activate re-entry into the top international feeder markets to Newport Beach to increase international visitation and visitor spending within destination TACTICS: • Through big data, credit-card tracking reports, trends and visitor profiles, evaluate opportunities to executive imaginative marketing that will best showcase Newport Beach as destination. • Explore new public relations and travel -trade representation firms in those top chosen markets to find the best capable and more equipped agency to generate the most brand awareness and travel to Newport Beach in the post-Covid-19 world. • Explore expansion of marketing footprint reach in existing international markets (China, Middle East and United Kingdom). • Deploy consumer advertising campaigns and events prior to need periods to accommodate travel time. • Explore expansion of marketing into new global markets. STRATEGY 2: Educate international travelers on newport beach and drive incremental visitation from each target international market TACTICS: • Expand digital marketing to a global scale to create a greater impact through visual story -telling. • Develop and deploy in -language website landing page to increase awareness and trust. • Re -imagine and develop marketing opportunities London's Newport Beach Film Festival U.K. Honours event leading up to the British Academy of Film & Television Arts (BAFTA) Awards. F% P61. f I rn Sh o� STRATEGY 1: OBJECTIVE 4 - LEISURE TRAVELER GO DIGITAL LEVERAGE DIGITAL MARKETING TO REACH CUSTOMER THROUGH ENGAGEMENT TO INCREASE VISITATION TO NEWPORT BEACH BY PROVIDING PERSONALIZED INFORMATION FOR TARGETED CUSTOMERS BASED ON THEIR SPECIFIC ACTIVITIES AND SEARCHES. Utilize multiple digital marketing channels to maximize two-way communications and improve ROI for Newport Beach TACTICS: • Adapt creative to different platforms to better tailor the advertising to different individual guests rather than a large coherent audience. • Set SMART (specific, measurable, actionable, relevant, and time -bound) objectives to define customer -centric value proposition (wellness, luxury, retail, outdoor sports, family, etc.). • Transition mass email to micro -targeted email marketing to provide a direct, but personalized communication to further increase loyalty and awareness. • Continue to enhance and expand all metrics and analytics to better understand the destination's key customers and implement appropriate digital marketing strategies that address consumer searches. STRATEGY 2: Use digital marketing to communicate a visually evocative reason to visit while building awareness TACTICS: • Leverage programmatic, organic and social media to initiate an emotional connection and create an incentive for visitation. • Increase Video advertising for destination storytelling to stimulate the senses and create a sensory response that results in visit to Newport Beach. • Utilize multiple platforms to promote events, news and incentives. • Address increased device usage by using dynamic digital marketing to retain focus on the Visit Newport Beach narrative. STRATEGY 3: Establish a new personalized digital connection via new destination website and mobile -based platform TACTICS: • Develop and launch a completely new destination website that is also dynamic for mobile devices to enhance and elevate the customer's online experience within www.VisitNewportBeach.com • Develop content marketing including new luxury content, stories, videos and blogs to offer helpful information that will hold customer attention with goal of influencing visitation as well as create destination awareness. • Leverage Ask Marina within new website to create and cement an AI -based, personalized concierge service for discovery of Newport Beach. T H US .N ., XN P %- r FLOAT WITH U9 WELCOME TO NEWPORT BEACH 32 FISCAL YEARS 2023 & 2024 DESTINATION BUSINESS PLAN NEWPORTBEACHANDCO.COM 33 12-20 NEW LEISURE TRAVELER PERSONAS Newport Beach & Company partnered with Destination Analysts to conduct market research to identify and develop key audience personas. Once the preliminary information was collected from 14 feeder markets, insights were filtered against the GlobalWebindex marketing research tool to gain additional insights for persona development. Seven high -value prospect groups emerged as the most likely to be attracted to Newport Beach destination vacation offerings. BEACH GOERS/FAMILY Drawn to beach destinations and activities, these family travelers pursue vacations that align with their active outdoor lifestyle. While interested in the quintessential California beach experience, they also have a willingness to invest in Newport Beach's premium experiences when it comes to dining out, cultural outings and more. Highly educated with postgraduate degrees, this group ranges between 45-54 and are married with 1-2 children. BUZZ BOUND �-- - m.wlw MOM rpi 11W i - Ya Characterized by their desire to seek out notable, exclusive destinations, this audience lives for on -trend experiences that can be showcased on their expertly curated social media feeds. They are exhilarated by spontaneous opportunities to try something new, from Instagram-worthy accommodations to culinary hot spots. Nightlife, exceptional restaurants and premium products in Newport Beach are of great interest for this group, which ranges from 25-54 but skews slightly younger. CULINARY CONNOISSEUR This persona finds joy in discovering regional and local cuisine, documenting "44 each experience on social media to bring followers along on their culinary travels. t �. : " Dining out is more than just an activity 'r for this group; it is a journey that begins ' with significant research into restaurants with the most unique atmospheres and food not readily available in their area. Once committed to a destination, they are likely to become brand evangelists who return to explore the ever -evolving culinary landscape. Though demographics fall in the 35-54 range and a majority are married with children, all ages are represented in this audience segment. THE LUXURY TRAVELER An accomplished, well-educated group with discerning taste, these travelers are drawn to the luxe amenities and bespoke offerings of Newport Beach's five-star resorts. They are willing to invest in high -end experiences across all luxury categories, from exceptional cuisine to exclusive designer fashions to premium products that showcase the region's unique culture and traditions. This affluent group, which skews toward the 35-54 age range, has an HHI upward of $200K. MEETING PLANNER AUDIENCE FUTURE MAP S.W.O.T ANALYSIS STRENGTHS STRONG HOTEL SUPPORT OF TBID AND VISIT NEWPORT BEACH SALES TEAM EXPERIENCED INTERNAL SALES STAFF PROVIDING CONTINUITY/ TENURE REVITALIZED HOTEL PRODUCT, INCLUDING NEW PREMIUM OFFERINGS STRONG, ROBUST THIRD -PARTY PARTNERSHIPS DESTINATION APPEAL • Outdoor experiences • Newport Harbor and beaches • Coastal chic properties • Luxury shopping WEAKNESSES NO CENTRAL, WALKABLE NIGHTLIFE DIRECTLY ACCESSIBLE FROM MEETING SPACES LIMITED ORANGE COUNTY AIR ACCESS TO SOME MAJOR MARKETS LACK OF VARIETY OF HOTEL PROPERTIES • Only two TBID 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 GROUP LACK OF "HIGH -TOUCH" EXPERIENCES COMMISSION STRUCTURE OF PORTFOLIO NO ONSITE GOLF AT TBID HOTELS AND RESORTS BOUTIQUE DESTINATION TREND, EVEN MORE SO POST -PANDEMIC ACCESSIBLE/AFFORDABLE LUXURY CELEBRITY APPEAL BRAND RECOGNITION FOR DISTINCT HIGH -END EXPERIENCES AND UNIQUE COASTAL APPEAL COG-0 OPPORTUNITIES 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/DIRECT FLIGHTS (SNA, LGB) BROADENING EXPOSURE FOR OUR HIGH -END HOTELS, NOW INCLUDING VEA NEWPORT BEACH, A MARRIOTT RESORT & SPA AND PENDRY INTEGRATED MARKETING CAMPAIGN TARGETING LUXURY AUDIENCE LEVERAGING ALL INDUSTRY PARTNERSHIPS ENHANCED INCENTIVES FOR THIRD PARTIES �� THREATS UNCERTAINTY OF HOW PLANNERS AND ATTENDEES DETERMINE SAFETY OF TRAVEL AND MEETINGS COVID-19: IMPACT OF VARIANTS, VACCINES, STATE/FEDERAL MANDATES NEIGHBORING/LOCAL FIVE-STAR PROPERTIES COMPETITORS OFFERING ADDITIONAL FINANCIAL SUPPORT, LEVERAGING HIGH -PROFILE PARTNERSHIPS, ETC. LOCAL ASSETS LEVERAGED BY COMPETITORS LACK OF DIFFERENTIATION WITH LOS ANGELES COUNTY MEETING PLANNER AUDIENCE BUSINESS OBJECTIVES 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 fiscal years 2023 and 2024. 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. 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. Given these headwinds, the future is bright for Newport Beach TBID hotels and resorts. The changing local hospitality landscape with TBID hotel closures and renovations has positioned our meetings product offering for a once -in -a - generation luxury renaissance. The reimagination of the new, stunning VEA Newport Beach Resort & Spa in 2022 combined with the dramatic repositioning of Fashion Island Hotel into Pendry Newport Beach in 2023 will elevate our hotel meetings product while simultaneously raising the group rate at these two TBID hotels. Compression from these two re -imagined Newport Center hotels will push group rates and occupancy higher throughout the TBID hotel inventory. As we pivot as sales and marketing organization to meet the new challenges or opportunities, Visit Newport Beach, Inc. Group Sales & Marketing looks forward to growing awareness of the benefits of working with our Group Sales team and showcasing our partner's luxury meetings renaissance, which showcases the hard work of our resilient hotel partners, sales teams and more. All these new luxury meetings touchpoints and campaigns will reinvigorate our spirit and pride in our amazing meetings and conferences destination. Visit Newport Beach, Inc. (TBID) Group Sales & Marketing Team is uniquely positioned to capitalize on this meetings recovery, which is coming at the perfect time as the reimagination and elevated meetings product comes online in 2023 and 2024. The elevated rates at VEA Newport Beach Resort & Spa and Pendry Newport Beach will add 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. OBJECTIVE 1 GROW CONFIRMED LUXURY MEETING BOOKINGS OBJECTIVE 2 ESTABLISH AND REINFORCE VISIT NEWPORT BEACH AS AN ESSENTIAL BUSINESS PARTNER OBJECTIVE 3 UNDERSTAND AND ELEVATE PLANNERS THROUGH DATA INTELLIGENCE OBJECTIVE 1 - MEETING PLANNER GROW CONFIRMED LUXURY S 0 id MEETING BOOKINGS SEAMLESS INTEGRATION OF BRANDING, MESSAGING, PLANNING SUPPORT, AND ONLINE AND OFFLINE TOUCHPOINTS AS LEADS MOVE DOWN THE SALES FUNNEL, ENABLING AN INSPIRED AND INFORMED PLANNER EXPERIENCE. EFFORTS WILL RESULT IN $24M+ REVENUE EARNED VIA BOOKED MEETINGS AND EVENTS, IMPACTING TBID HOTEL, RETAIL, RESTAURANT, AND GROUP EXPERIENCE DESTINATION PARTNERS. STRATEGY 1: Generate content, sales support materials and targeted promotions TACTICS: • Prioritize storytelling and destination positioning with unique itineraries (activities, dining, etc.) via website content, blogs and email communications. • Create and promote third -party planner promotions, engendering loyalty and providing extended value to the planner. • Active SEO strategies with informative, impactful content to meet planners at each stage of their planning journey and inspire conversion. • Email communications to deliver curated content that aligns with tradeshow participation, seasonal offers and unique destination offerings. STRATEGY 2: Reinforce and expand in -person and virtual tradeshow and industry partner engagement to expand awareness and build relationships. TACTICS: • Return to signature targeted tradeshows and industry events while investing in new luxury -focused shows with refreshed booth presence and iSales app content. • Invest in strategic event sponsorships and speaking opportunities to establish a strong continuity of industry support and expand brand presence. • Maximize tradeshow advertising opportunities across multiple tactics to engage pre -event, onsite and post -event. • Leverage paid and owned PR and media opportunities to deliver dynamic and timely destination and team developments to boost planner awareness. • Engage planners with social posts featuring in -person show activities, event sponsorships and destination partner engagements. STRATEGY 3: Deliver highly desirable lead engagement and TBID partner support TACTICS: • Execute elevated familiarization tours (FAMs) with curated, branded experiences and high -touch service from destination professionals and partners. • Continue highly successful gift programs that delivers a high -impact brand presentation with personalized messaging to encourage site visits. • Pursue viable leads via funnel outreach, incorporating tactics aimed to pull leads through the funnel. • Create targeted email campaigns, templates and curated support materials for one-to-one lead communications. • Support TBID partners via assets, collateral and sales efforts for continued collaboration. OBJECTIVE 2 - MEETING PLANNER ESTABLISH AND REINFORCE VISIT NEWPORT BEACH AS AN ESSENTIAL BUSINESS PARTNER REINFORCE THE VALUE OF ENGAGING THE VISIT NEWPORT BEACH SALES TEAM THROUGH COMPELLING INITIATIVES THAT PROVIDE PROOF POINTS OF PARTNERSHIP. STRATEGY 1: Position Visit Newport Beach as an invaluable resource throughout all stages of the planning journey TACTICS: • Conduct ongoing exploration of post -pandemic planner and group needs and support. • Promote differentiation with competing DMOs via accredited and experienced team members, elevated service, etc. • Create innovative solutions to address program pain points via destination partnerships and extended value propositions. • Promote seasonal and signature offers across planner types and sponsorships that extend an event's bottom line. STRATEGY 2: Expand awareness among destination partners and engaged leads TACTICS: • Launch targeted email communications to key market segments that follow a lead's unique planning journey. • Translate destination and team values using visual storytelling, templated messaging and blog content. • Demonstrate partnership case studies via social channels and email communications. • Sustain ongoing engagement with destination partners with lead assists, FAMs, collateral and curated support. • Continue ongoing communications with TBID partners regarding marketing, event and partnership opportunities. dao STRATEGY 1: OBJECTIVE 3 - MEETING PLANNER UNDERSTAND AND ELEVATE PLANNERS THROUGH DATA INTELLIGENCE LEVERAGE QUALITATIVE AND QUANTITATIVE DATA GAINED THROUGH DIGITAL ENGAGEMENT TO DELIVER EFFECTIVE MARKETING AND MEET PLANNERS WHERE THEY ARE IN BOTH LOCATION AND PLANNING JOURNEYS. Incorporate data from industry partnerships, studies and platforms to enhance sales strategies TACTICS: Obtain information on group meetings from the live database provided by membership software program Knowland (lead assessment). - Apply filters for comp set hotels as determined in each search — meeting dates, size, location of accounts, vertical markets, etc. - Use software to identify the most relevant customers and make decisions on advertising, deployment, trade shows and events. • Use the Cvent dashboard (competitive analysis, market trends, team efficiencies) for data on RFP and ADR performance YOY, or as measured in our comp set. Maximize other software capabilities to break down geographic regions, market segments, meeting types, sizes and times of year to help analyze where efforts and resources should be directed. • Closely follow industry studies on trends and planner insights from sources like Northstar, PCMA, MPI and Destination Analysts, as well as others, to obtain the research needed on the macro scale to bump against destination- or regional -specific perspective. STRATEGY 2: Translate learnings from digital marketing platforms to deliver effective messaging and experiences TACTICS: • Leverage Act -On email analytics for lead journey mapping, market segmentation, etc. • Optimize website via SEO and digital campaign tracking using strategic UTM tagging, etc. • Continue to enhance and expand all metrics and analytics to better understand the destination's key customers and implement appropriate digital marketing strategies that address consumer searches. 44 FISCAL YEARS 2023 & 2024 DESTINATION BUSINESS PLAN NEWPORTBEACHANDCO.COM 45 12-26 LOCAL COMMUNITY AUDIENCE FUTURE MAP S.W.O.T ANALYSIS M STRENGTHS ................................................................... : EXPLOIT STRENGTHS STRONG, CREDIBLE CITY AND DMO REPUTATION • City staff, civic leaders, civic organization Visit Newport Beach Inc., Newport Beach & Company POSITIVE FINANCIAL IMPACT THROUGH BRAND DEFINING EVENTS UNITED UNDER COHESIVE MARKETING, PR AND MEDIA BUYING FOR ALL BUSINESS UNITS DESTINATION APPEAL FOR STRONG RECOVERY: ABUNDANT NATURAL OUTDOOR SPACES AND OFFERINGS COMPELLING TOURISM PRODUCT: AIRPORTS, TRAIN, RESTAURANTS, RETAIL, HOTELS, HARBOR, BEACHES, WEATHER, NEAR ATTRACTIONS DIVERSE NEIGHBORHOODS TO APPEAL TO VARIOUS INTERESTS DIVERSE HOTEL/ACCOMMODATIONS: FIVE-STAR RESORT TO SMALL INNS & VACATION RENTALS HOSPITALITY -FORWARD FIRST RESPONDERS: POLICE, FIRE AND LIFEGUARD DEPARTMENTS WEAKNESSES MIXED SUPPORT FOR TOURISM LIMITED CONVENTIONS, MEETINGS EXHIBIT AND EVENT FACILITIES/VENUES BENEFITS THE CITY LACK OF SPORTS AND RECREATION FACILITIES AIR ACCESS FROM SOME MAJOR MARKETS LIMITED MOBILITY AND ACCESS (LOCAL TRANSPORTATION WITHIN CITY) LIMITED CITYWIDE COMMUNICATIONS AND INTERNET INFRASTRUCTURE NO CENTRAL, WALKABLE NIGHTLIFE LIMITED OCEANFRONT/BEACH FRONT HOTELS PERCEPTION OF BEING TOO EXPENSIVE LACK OF NATIONAL/INTERNATIONAL AWARENESS WORKFORCE: COMPETITIVE SALARIES AND LIMITED STAFF ENGAGED LOCAL MEDIA WITH STRENGTH TO REACH RESIDENTS VIA NEWPORT BEACH TV (GOVERNMENT -ACCESS TV CHANNEL) STRONG PARTNER COMMUNITY ACCESS TO VACCINES AND MEDICAL CARE ROBUST HOSPITALITY AND RESTAURANT COMMUNITY DYNAMIC ECONOMIC DEVELOPMENT BASE COG-0 OPPORTUNITIES EMERGING NEW TBID PARTNERS REVITALIZED HOTELS AND RESORTS GROWING PROMINENCE OF NEWPORT BEACH EVENTS: FILM FESTIVAL, HOAG CLASSIC EXPANDED AIRLIFT/JOHN WAYNE AIRPORT CAPACITY CAP INCREASE MOBILIZING STATE AND COUNTY TO SUPPORT LOCAL RESOURCE TO PARTNERS AND COMMUNITY FOR AD HOC CONSULTING NEW ECONOMIC TOOLS AND RESOURCES FOR PARTNERS INCREASED CORPORATE COMMUNICATIONS NIMBLE AND INNOVATIVE INTERNAL TEAM �� THREATS SHARING ECONOMY ECONOMIC AND POLITICAL UNCERTAINTY/INSTABILITY COVID-19: VARIANTS, VACCINES, STATE/FEDERAL MANDATES HURDLES TO INTERNATIONAL ACCESS INTO THE UNITED STATES: LAPTOP/TRAVEL BANS, VISA ACCESS U.S. INTERNATIONAL PERCEPTION/ IMAGE ONLINE SOURCING PLATFORMS MAKE IT EASY TO CIRCUMVENT NEWPORT BEACH NATURAL WEATHER -RELATED DISASTERS CALIFORNIA "FIRE SEASON" THIRD -PARTY COMMISSION STRUCTURES LIMITED CAPACITIES AT ATTRACTIONS AND TOURISM/HOSPITALITY BUSINESSES INCIDENTS GOING VIRAL ON SOCIAL MEDIA CAUSING NEGATIVE SENTIMENT/"CANCEL CULTURE" TOWARD DESTINATION OR LOCAL BUSINESSES SUPPLY -CHAIN CRISIS IMPACTING TOURISM -RELATED RESOURCES LOCAL COMMUNITY AUDIENCE BUSINESS OBJECTIVES Newport Beach & Company leads the charge for the entire hospitality and tourism industry in Newport Beach by providing value for businesses, acting as a HQ for information, creating resources, and amplifying the importance of the tourism, hospitality, and meetings industry on the world stage. Building off a turbulent two years, Newport Beach & Company will continue its important work on behalf of the community. The organization is partner -and -stakeholder driven by servicing small business to luxury resorts and all visitor -facing businesses in between. Through advocacy work, partner communications and corporate communications, Newport Beach & Company puts business first to demonstrate economic impact, jobs creation and the significance of the industry. As we pivot as an organization to new leisure marketing challenges and opportunities, Newport Beach & Company looks forward to generating incremental visitor spending by emphasizing the luxury renaissance in our hotel, resort, and retail product, while promoting and marketing our resilient partners, hotels, local investors and residents that will reinvigorate our mojo, spirit and results as destination marketers in fiscal years 2023 and 2024. Newport Beach & Company is the "glue" that unites the community from a marketing, economic and hospitality standpoint. The organization 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. Newport Beach & Company and its six unique, standalone business units are a community -marketing agency for the City of Newport Beach, California benefiting local residents, partners, City of Newport Beach, City Council, civic organizations, hotels, businesses, merchant's associations, regional destination -marketing organization and other regional/local influential community stakeholders. Leveraging this model, Newport Beach & Company plans to engage the local community in new, innovative ways to promote the value of tourism, Newport Beach & Company, and the Newport Beach brand to even greater heights. Newport Beach & Company 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 projects that support overarching strategies. 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. dpo OBJECTIVE 1 DISTRIBUTE DATA -DRIVEN . REPORTS OBJECTIVE 2 COMMANDING CORPORATE COMMUNICATIONS OBJECTIVE 3 CREATIVE COMMUNITY CONSULTANTS OBJECTIVE 4 tZ ` PARTNERSHIP EDUCATION & NETWORKING OBJECTIVE 5 REIMAGINED BUSINESS UNITS OBJECTIVE 1 - LOCAL COMMUNITY DISTRIBUTE DATA -DRIVEN REPORTS 0 RESEARCH AND DATA ARE KEY TO BUSINESS SUCCESS. •• NEWPORT BEACH & COMPANY IS LEVERAGING ITS NEW BUSINESS U INTELLIGENCE PLATFORM AND OTHER DATA REPORTS TO AGGREGATE COMPREHENSIVE WEEKLY DASHBOARD SHOWING THE ECONOMIC HEALTH OF NEWPORT BEACH -INCLUDING MEDIAN HOME PRICES, # DAYS TO SELL, UNEMPLOYMENT RATE, HOSPITALITY/TOURISM UNEMPLOYMENT DATA, PERCENT OF RESTAURANTS OPEN, # OF SEATED DINERS, HOTEL OCCUPANCY, ADR AND MORE BY DAY, MONTH AND WEEK. STRATEGY Newport Beach & Company has amassed cutting -edge intelligence and data information pertinent to business and civic entities in the destination. Assemble vital information from economic health to visitor profiles and disseminate to partners on a weekly and ad hoc basis. The goal is be a resource for partners, taking the lead on business intelligence to assist local partners with important decisions and their own marketing plans. TACTICS: • Deploy a robust weekly insights email brimming with economic information and data points to illustrate the economic health of the destination. • Through new Zartico software system, provide City Council and City of Newport Beach staff with data visualization on visitor flow, volume and other valuable insights. • 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. • Continue to be the lead resource for data and intelligence in the destination. • Create custom intelligence reports for partners on request. • Continue to define visitor profile and key audiences for local partners to roll -out within their marketing plans. OBJECTIVE 2 - LOCAL COMMUNITY COMMANDING CORPORATE ' COMMUNICATIONS ® THROUGH CORPORATE COMMUNICATIONS, NEWPORT BEACH & COMPANY WILL CONTINUE TO STRONGLY ADVOCATE FOR TOURISM, HOSPITALITY, MEETINGS AND DESTINATION MARKETING INTO THE NEXT TWO FISCAL YEARS AND BEYOND. 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. STRATEGY Newport Beach & Company's corporate communications strategy takes a three -prong approach, amplifying key information to three audiences: media, partners/community and internal staff. Corporate communications will take a more central role in the public relations department over the next fiscal years by implementing a robust communications strategy and schedule to disseminate information to targeted audiences in a timely manner. TACTICS: • Refresh robust corporate communications plan to include business information sharing to media, partners/community and internal staff. • Showcase wins, the team will enhance partners communication to illustrate Newport Beach & Company's creative and results -driven campaigns and programs with case studies and other forms of communication • Increase Linkedln communications to key community well-informed of the work we do. • Deepen relationships with key business media reporters and editors. • Ideate and implement unique break -through ways to tell the Newport Beach & Company story and greater hospitality story to the world. • Continue weekly CEO Guest Column in StuNewsNewport. • 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. OBJECTIVE 3 - LOCAL COMMUNITY CREATIVE COMMUNITY CONSULTANTS CONTINUE NEW ROLE AS COMMUNITY CONSULTANTS FOR PARTNERS, HOTELS, RESTAURANTS AND LOCAL CIVIC ORGANIZATIONS TO ELEVATE THEIR BUSINESSES AND DRIVE ECONOMIC GROWTH. STRATEGY 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 2020-2021 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. • Maximize opportunities for partner win -wins for Newport Beach & Company and partners. • 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. • Provide economic resources and marketing toolkits for partners and community. OBJECTIVE 4 - LOCAL COMMUNITY PARTNERSHIP EDUCATION & NETWORKING • 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. STRATEGY 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: • Hold Annual Marketing Outlook Breakfast, Annual Dinner & Tourism Awards and Annual Holiday Partner Event. • Create first -ever Visitor Choice Awards recognizing top partners and businesses at the newly reimagined annual dinner. • Continue Rosalind Williams Service Excellence Award and Dennis O'Neil Partner in Progress awards as well as Local Tourism Hero Award. • 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. • Update partners with new brand creative and other marketing tools. OBJECTIVE 5 - LOCAL COMMUNITY REIMAGINED BUSINESS UNITS I IMPACTS FROM THE AND CIVIC DECISIONS HAVE GIVEN WAY TO NEW OPPORTUNITIES TO REIMAGINE NEWPORT BEACH & COMPANY AND ITS BUSINESS UNITS FOR THE FUTURE. EVOLVE AND EXPAND THE ENTREPRENEURIAL, COMMUNITY -MARKETING ORGANIZATION MODEL AT NEWPORT BEACH & COMPANY THROUGH ITS UNIQUE BUSINESS UNIT STRUCTURE ENCOMPASSING COMMUNITY -WIDE MARKETING, BRANDING, PUBLIC RELATIONS, DIGITAL MARKETING, SOCIAL MEDIA AND SPONSORSHIP ACQUISITION THROUGH ONE SINGLE, INNOVATIVE COMPANY WITH SIX DISTINCT BUSINESS UNITS. STRATEGY 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: • Evaluate and evolve Newport Beach & Company model with innovative "2.0" business models that are self-sustaining and provide sustaining methods, staffing and seek additional revenue streams. • Rebuild internal staff and extended team with top freelancers and contractors. • Imagine new ways to provide an "umbrella" organization for the culinary community. • Assemble neighborhood advisory taskforce, address needs and implement cutting -edge marketing and branding campaigns to drive awareness and visitation to all corners of the destination. • Consult with marketing and communications services for marquee brand -defining community events. CORPORATE �� WEAKNESSES <oi AUDIENCE THREATS FUTURE MAP S.W.O.T ANALYSIS STRENGTHS COMMITTED STAFF, EXECUTIVE COMMITTEE 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 MARKETING AND SALES EXPERTS 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 PREMIER DESTINATION PRODUCT 10-YEAR TBID AND TOT CONTRACTS WITH THE CITY OF NEWPORT BEACH APPEALING OFFICE INFRASTRUCTURE, ENVIRONMENT AND SCENIC LOCATION VISIT CALIFORNIA, A MARKETING POWERHOUSE THAT LEADS AND SETS THE AGENDA FOR ALL DMO'S IN STATE ADJUST TO REDUCED STAFF DUE TO COVID-19 REVENUE SHORTFALLS COMPETITIVE JOB MARKET, SALARY EXPECTATIONS NO CENTRALIZED HUMAN RESOURCES/ INFORMATION TECHNOLOGY DEPARTMENTS MIXED SUPPORT FOR TOURISM LIMITED CONVENTION, MEETING AND EVENT FACILITIES/VENUES LIMITED AMATEUR SPORTS FACILITIES STRONG ECONOMY MAKES COST OF SERVICES MORE EXPENSIVE HOTEL CLOSURES CONTINUE DUE TO COVID-19 PANDEMIC (AFFECTING REVENUE) HOTEL CLOSURES DUE TO RENOVATIONS (AFFECTING REVENUE) COMPETITIVE PARITY VS OTHER DMO BUDGETS FOR MARKETING AND BUSINESS EXECUTIONS 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 ABILITY TO PIVOT, PLAN FOR WORST -CASE SCENARIOS CHANGING LANDSCAPE THAT WILL GENERATE INCREASED REVENUE VIA LUXURY HOTELS AND RETAIL STORES GOG-0 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 REPORTS AND DATA THAT PROVIDE INSIGHT ON VALUE OF TOURISM NEWLY RENOVATED, ELEVATED HOTELS: VEA NEWPORT BEACH, A MARRIOTT RESORT & SPA AND PEN DRY REPORTS AND DATA THAT PROVIDE INSIGHT ON VALUE OF TOURISM BOARD REPORTING: MAKING CONTENT ENGAGING AND RELEVANT TO BOARD MEMBERS ADVOCATE FOR NEW HOTEL, TRANSPORTATION AND EVENT VENUES TO 2024 WORLD CUP AND 2028 SUMMER OLYMPICS ALL IN AND AROUND LOS ANGELES METRO AREA MARKETING CONSULTANCY AND EXPERTISE TO BENEFIT PARTNERS GLOBAL PANDEMICS, COVID-19 VARIANTS/NEW STRAINS, TRAVEL BANS & QUARANTINES ECONOMIC RECESSION, INFLATION, STAGNATION ECONOMIC AND POLITICAL UNCERTAINTY/INSTABILITY/PROTESTS FLUCTUATING FOREIGN-EXCHANGE RATES TRIBAL POLITICAL DISCOURSE 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 RUSSIA-UKRAINE WAR AND ITS GLOBAL IMPACT ON ECONOMY AND TRAVEL CORPORATE AUDIENCE BUSINESS OBJECTIVES For the past two years, the world has faced the greatest workplace disruption in generations. Newport Beach & Company is committed to meeting this watershed moment by rolling out a variety of new ways we do business, from hybrid scheduling to a complete office renovation. Newport Beach & Company and Visit Newport Beach, Inc. jointly present this integrated administration, information -technology, finance, marketing, and group sales and services plan to meet the moment in workplace and business changes in a post-COVID-19 world, deepen engagement levels with the staff and boards of directors of both companies and the TBID board of directors and invest in people and culture to increase productivity; generate efficiencies; reduce costs and attract, satisfy and retain quality employees and board members for the two organizations. As we pivot as an organization to new leisure marketing challenges and opportunities, Newport Beach & Company looks forward to generating incremental visitor spending by emphasizing the luxury renaissance in our hotel, resort, and retail product, while promoting and marketing our resilient partners, hotels, local investors and residents that will reinvigorate our mojo, spirit and results as destination marketers in fiscal years 2023 and 2024. Newport Beach & Company plans to engage its employees, committees, 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. TOT (tourism -occupancy tax drives incremental tourism) • Visit Newport Beach, Inc. TBID (tourism business -improvement district generates incremental meetings business) • Dine Newport Beach (former partnership with the Newport Beach Restaurant Association— reimagi ned into culinary/restaurant tourism marketing) • Enterprise Newport Beach (new Neighborhood Advisory Taskforce/economic development) • Celebrate Newport Beach (brand -defining events): Newport Beach Film Festival (NBFF), NBFF Fall Honors/Variety 10 Actors to Watch, Christmas Boat Parade, Newport Beach Restaurant Week (possibly renewed), NBFF U.K. Honours/ Variety 10 Actors to Watch (London), and Hoag Classic. • Video Newport Beach/Newport Beach TV (Video production/government-access television channel) 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. A �` OBJECTIVE 1 ENHANCE BOARD ENGAGEMENT T� OBJECTIVE 2 A MODERN WORKPLACE TO MEET THE MOMENT &THE FUTURE • OBJECTIVE 3 J� PEOPLE +CULTURE x AL AL OBJECTIVE 1 - CORPORATE ENHANCE BOARD ENGAGEMENT 70 ENHANCE 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 DINNER AND OTHER COMPANY FUNCTIONS. STRATEGY Develop a communications -and -outreach strategy to board members of all three of our companies/organizations in an effort to increase board engagement, attendance and commitment to each organization. TACTICS: • Re -imagine the Annual Marketing Outlook Dinner into two separate events to showcase the "look ahead" in early summer partner breakfast meeting when the new two-year Destination Business Plan is unveiled, and a "Year in Review" event and tourism awards reception in the fall. • June 2023: Newport Beach & Company Annual Marketing Outlook Breakfast (VEA Newport Beach, A Marriott Resort & Spa) • October 2023: Newport Beach & Company Annual Dinner & Tourism Awards (VEA Newport Beach, A Marriott Resort & Spa) • Continue quarterly e-Newsletters with messaging from the president and CEO to partners, board members and community leaders. • Continue weekly insights newsletter with economic dashboard to provide up-to-date vital research and data. • Bring in board members for focus group and task forces where needed. • Review functionality of processes for board meetings. • Continue to create engaging board meetings with guest speakers. • Create a short, highlight video about the companies, business units, mission, vision and economic impact to the destination. OBJECTIVE 2 - CORPORATE A MODERN WORKPLACE TO MEET THE MOMENT T A COMPLETE REIMAGINATION OF HOW WE DO BUSINESS WILL BE UNVEILED THIS FISCAL YEAR, FROM THE ADOPTION OF THE HYBRID SCHEDULE TO A NEWLY RENOVATED OFFICE WITH OPEN-PLAN SEATING TO ENCOURAGE COLLABORATION AND IDEATION. WITH THE NEW HYBRID MODEL, EXAMINE AND POSSIBLY REINVENT ALL BUSINESS TECHNOLOGY PROCESSES, WORKFLOW AND PROJECT MANAGEMENT THROUGHOUT THE COMPANY. STRATEGY Given the new luxury renaissance the destination is experiencing, Newport Beach & Company is refreshing its HQ with a brand-new space that reflects the Newport Beach brand and functions for its new hybrid work schedule, while saving on annual lease expenses. The team will also look to improve company efficiency and performance with new cutting -edge technology solutions to function in the hybrid work environment. TACTICS: • Create an immerse and reinvigorating HQ environment that brings the Newport Beach brand to life and energize employees with open seating to encourage cross -department collaboration. • To protect the safety of the employees and community, mandatory vaccine status is required for employment with Newport Beach & Company. • Discover best -in -class computers, cloud -based platforms and software to give employees resources to function in new hybrid environment. • Monitor all processes for project -and -time -management critical paths throughout the company to find gaps, bottlenecks or issues that impede successful outcomes. Explore new time -management software solution to manage and approve paid -time -off requests and hourly employee timecards. OBJECTIVE 3 - CORPORATE PEOPLE + CULTURE ATO COMPETE FOR AND RETAIN TALENT, BECOME THE PREFERRED REGIONAL DMO EMPLOYER. FOSTER A CULTURE TO INCREASE EMPLOYEE PERFORMANCE, MORALE AND RETENTION AND OTHER MEASURES OF EMPLOYEE SATISFACTION. STRATEGY Centralize several employee benefits, offer letters and employee -facing information into a formalized process with clear accountability. TACTICS: • Leadership to continually review and reinvest in company culture and employees to retain and attract top talent. • Continue to assess company morale to ensure a healthy workplace. • Continue wellness benefits and stay and play benefits. • Continue annual retreats to brainstorm ways to continually improve • 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. • Prepare the report for each employee and deliver that report following their annual performance reviews. • Continue successful holiday lunch. • Continue infusing the company's core values into everything we do. • Continue to look for enhancements, features and new tools to maximize return on investment. • Continue to support external, job -related educational opportunities for all employees. 60 FISCAL YEARS 2023 & 2024 DESTINATION BUSINESS PLAN NEWPORTBEACHANDCO.COM 61 12-34 FY2023 & FY2024 BUDGETS VISIT NEWPORT BEACH INC. (TBID) GROUP SALES & MARKETING FY2023 & FY2024 NEWPORTVISIT GROUP SALES &MARKETING Revenue $3,806,384 BUDGET FY2024 $4,034,000 Operating Expenses $2,152,565 $2,200,000 Advertising $226,000 $145,000 Community Relations $110,000 $100,000 Digital Marketing $190,800 $85,000 PR/Communications $18,000 $18,000 Trade Shows $353,400 $245,000 Sales Group Enhancement Credit $290,000 $275,000 Hosted Industry Events $99,000 $100,000 Industry Partnerships/Sponsorships $286,700 $285,000 Site Inspections $38,200 $40,000 Client Events $123,500 $100,000 Conference Services $1,000 $1,000 Database/Prospecting $139,100 $75,000 Special Promotions/Marketing Collateral $18,500 $15,000 Customized Destination Support $458,000 $350,000 14 0% ■ ADVERTISING ■ COMMUNITY RELATIONS ■ DIGITAL MARKETING/WEBSITE ■ PR/COMMUNICATIONS ■ TRADE SHOWS 1% ■ SALES GROUP ENHANCEMENT CREDIT ■ HOSTED INDUSTRY EVENTS ■ INDUSTRY PARTNERSHIPS/SPONSORSHIPS ■ SITE INSPECTIONS ■ CLIENT EVENTS ■ CONFERENCE SERVICES ■ DATABASE/PROSPECTING ■ SPECIAL PROMOTIONS/MARKETING COLLATERAL ■ CUSTOMIZED DESTINATION SUPPORT VISIT NEWPORT BEACH, INC. (TOT) LEISURE FY2023 & FY2024 LE�SURE BUDGET ALLOCATION Revenue BUDGET FY2023 $5,622,499 BUDGET FYf2024 $5,847,400 Operating Expenses $144,595 $149,000 Advertising $2,832,200 $1,241,400 Community Relations $119,000 $115,000 Collateral $27,500 $22,000 International Marketing $713,800 $685,000 Digital Marketing $505,820 $475,000 PR/Communications $268,100 $260,000 Fees and Contributions to Newport Beach & Company $2,743,765 $2,900,000 ■ ADVERTISING ■ COMMUNITY RELATIONS COLLATERAL INTERNATIONAL MARKETING ■ DIGITAL MARKETING ■ PR/COMMUNICATIONS NEWPORT BEACH & COMPANY FY2023 & FY2024 BUDGET ALLOCATION NEWPORT Revenue $3,016,920 $3,137,597 Operating Expenses $2,751,770 $2,861,197 Advertising $152,950 $160,000 Community Relations $93,500 $97,000 Collateral $11,000 $11,400 Website $5,200 $5,400 PR/Communications $2,500 $2,600 2% 1% ■ ADVERTISING ■ COMMUNITY RELATIONS ■ COLLATERAL WEBSITE/DIGITAL ■ PR/COMMUNICATIONS F=FORECAST FY2023 & FY2024 GOALS VISIT NEWPORT BEACH, INC. TOURISM -OCCUPANCY TAX (TOT) GOALS TOPLINE GOALS & KEY PERFORMANCE INDICATORS FOR LEISURE TRAVEL TO NEWPORT BEACH TOURISM -OCCUPANCY TAX (TOT) REVENUE TO THE CITY OF NEWPORT BEACH $19,000,000 $22,023,000 $33,889,024 (ESTIMATED) $35,245,122 (ESTIMATED) MARKETING CAMPAIGN ROOM NIGHTS 30,000 137,273 140,000 150,000 MARKETING CAMPAIGN ECONOMIC IMPACT $20,000,000 $17,800,000 $40,000,000 $46,000,000 DIGITAL MARKETING (OWNED & PAID MEDIA CHANNELS) VNB WEB VISITS 1,000,000 1,030,311 1,480,000 1,628,000 REFERRALS TO PARTNER VISITS 103,000 4,500 9,500 10,925 ADVERTISING (PAID MEDIA CHANNELS) TOTAL AD IMPRESSIONS 75,000,000 132,125,915 145,000,000 175,000,000 ONLINE AD CLICKS TO SITE 1 125,000 1 242,751 1 350,000 430,000 MEDIA RELATIONS, CONTENT MARKETING & SOCIAL MEDIA (EARNED & OWNED MEDIA CHANNELS) MEDIA PLACEMENTS (DOMESTIC+ INTERNATIONAL) 1,000 956 1,100 1,200 KEY CONSUMER MEDIA PLACEMENTS 448 252 300 325 KEY TRADE MEDIA PLACEMENTS (13213) 40 73 85 100 SOCIAL MEDIA FOLLOWERS 230,000 225,634 250,000 270,000 F=FORECAST `MARKETING CAMPAIGN GOALS ACHIEVED AS OF APRIL 20, 2022. AD EFFECTIVENESS STUDIES TO MEASURE ECONOMIC IMPACT AND ROOM NIGHTS FOR WINTER & SPRING CAMPAIGNS ARE IMPLEMENTED AFTER LEISURE TRAVEL OCCURS. WINTER CAMPAIGN RESULTS HAVE NOT BEEN FINALIZED BY THIRD -PARTY RESEARCH VENDOR. MEDIA ARE STILL RUNNING FOR SPRING CAMPAIGN AND TRAVEL HAS NOT YET OCCURRED. FINAL RESULTS DUE SEPTEMBER 1, 2022. "'TRADE WAS HIGHER DUE TO GREATER VOLUME OF BUSINESS STORY/PANDEMIC-RELATED PLACEMENTS. NEWPORT BEACH & COMPANY BUSINESS -UNIT GOALS ., . . GOALS CELEBRATE NEWPORT BEACH: BRAND -DEFINING EVENT MARKETING NBFF U.K. HONOURS/VARIETY10 BRITSTO WATCH N/A 75 MEDIA PLACEMENTS 5,500,000 ONLINE VIEWS NEWPORT BEACH FILM FESTIVAL AD IMPRESSIONS N/A 6,000,000 6,000,000 CHRISTMAS BOAT PARADE AD IMPRESSIONS N/A 5,400,000 5,400,000 5,400,000 HOAG CLASSIC AD IMPRESSIONS N/A 6,000,000 6,000,000 6,000,000 VIDEO NEWPORT BEACH: NEWPORT BEACH TV + DESTINATION LIFESTYLE VIDEO PROGRAMMING NEW VISIT NEWPORT BEACH EPISODES CREATED 75 60 80 85 NEWPORT BEACH TV PRODUCTION HOURS N/A 1,400 1,800 1,800 F=FORECAST N �1� .t LEISURE TRAVELER RESEARCH 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 experience for return visitation. Newport Beach & Company tracks and evaluates the effectiveness and ROI for marketing initiatives, partnering with research companies to track incremental visitor trips, overnight stays and spend generated by marketing campaigns. Newport Beach & Company will continue to build upon and refine existing marketing strategies while seeking new and imaginative ways to increase and extend visitation and overnight stays in Newport Beach. Newport Beach & Company has partnered with Tourism Economics, an Oxford economics company, to analyze impact of COVID-19, recovery and tourism forecast in Newport Beach. The research and forecast in the following pages include in -state, domestic and international. Leveraging qualitative and quantitative data as well best practices, and resources, Newport Beach & Company will plan and execute integrated campaigns to accomplish the objectives set forth to keep Newport Beach at the forefront of travel trends and drive incremental visitation to Newport Beach. IMPACT OF TOURISM IN NEWPORT BEACH IF YOU TOOK THE TOURISM INDUSTRY AWAY FROM NEWPORT BEACH... TO KEEP NEWPORT BEACH GOVERNMENT SERVICES FLOWING AT THE SAME LEVELS: IT WOULD COST EVERY NEWPORT BEACH HOUSEHOLD AN ADDITIONAL IN TAXES PER YEAR. TO KEEP THE NEWPORT BEACH ECONOMY CHURNING AT THE SAME LEVELS: IT WOULD COST EVERY NEWPORT BEACH HOUSEHOLD AN ADDITIONAL $43,922 IN ADDITIONAL LOCAL SPENDING PER YEAR. 16mWe �0 73M TOTAL VISITATION 297-31 AVG DAILY SPEND PER v PARTY $1 2 F VISITOR SPENDING 5.5 AVG NUMBER �_}O OF TRIPS 2 NEWPORT BEACH HOTEL OUTLOOK The COVID-19 pandemic had a devastating impact on the global and tourism industry, and impact on Newport Beach was no exception. The successful deployment of the vaccine in 1Q2021 in the U.S. began to restore domestic leisure segment. Regional in -state travel was the first to begin to recover, followed by a revival of a wider domestic long -haul travel as travel restrictions were gradually lifted. NEWPORT BEACH HOTEL OUTLOOK 2012 SUPPLY 884,395 I[EMAN 638,151 OCCUPANCNM 72% EVENUE $100,389,591 ADR $157 R= $114 2013 885,036 635,166 72% $106,609,646 $168 $120 2014 885,125 662,640 75% $117,078,820 $177 $132 2015 885,125 684,583 77% $127,338,963 $186 $144 2016 1,146,345 889,734 78% $215,590,963 $242 $188 2017 1,172,292 866,671 74% $218,284,503 $252 $186 2018 1,210,810 863,597 71% $227,966,819 $264 $188 2019 1,223,115 925,575 76% $240,412,406 $260 $197 2020 954,588 412,242 43% $114,013,606 $277 $119 2021 1,121,021 575,105 51% $187,426,490 $326 $167 2022F 1,225,695 842,601 69% $292,106,060 $347 $238 2023F 1,276,915 956,997 75% $344,012,851 $359 $269 2024F 1,279,444 1,014,902 79% $377,817,410 $372 $295 NEWPORT BEACH HOTEL OUTLOOK, PERCENT RELATIVE TO 2019 (2019=100PERCENT) 2020 SUPPLY 78% DEMAND 45% OCCUPANCY 57% REVENUE 47% ADR 106% 61% 2021 92% 62% 68% 78% 125% 85% 2022F 100% 91% 91% 122% 133% 121% 2023F 104% 103% 99% 143% 138% 137% 2024F 105% 110% 105% 157% 143% 150% The leisure segment dominated during the pandemic, and Newport Beach's offerings uniquely positioned it to reap the benefits in terms of high ADR. While ADR across the U.S. fell 21 percent below 2019 levels, Newport Beach ADR grew a remarkable 6 percent in 2020. Strong economic fundamentals indicate lodging supply to be restored to its 2019 benchmark in 2022 with an increase of 4 percent in 2023 when the luxury hotel brand Pendry's conversion of 295 guestroom Fashion Island Hotel into Pendry Newport Beach will be completed. This development along with luxury furniture brand RH's announcement about the spring 2024 opening of its new four-story, 80,000-square-foot furniture gallery and restaurant in Fashion Island, which will be one -of -its -kind attraction in Orange County, will set Newport Beach apart from its competitors. ANNUAL TOTAL HOTEL REVENUE $400,000,000 180% j $350,000,000 �� r 160% W w 140% w $300,000,000 \ F $250,000,000 _ \ o/ 120% 0 0 _ o 0 100% G $200,000,000 80% ooa^ y Z z $150,000,000 �, n^ �Y g� wo °'` / 60% $100,000,000 40% $50,000,000 20% $0 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022F2023F2024F 1111 REVENUE -- ANNUAL GROWTH RATE 140% ^0 120% a a100% 0 Z 80% a 60% U O J H 40% O x 20% AVERAGE HOTEL RATE 0% 20-12 ANNUAL PERFORMANCE OCCUPANCY ANNUAL PERFORMANCE 10, — \ pim r 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022F 2023F 2024F $400 140% 120 R$350 \ $300 — — z ,Jj, — .i 100% F 00 $250 3 = 80% z ,Wy $200 60% z $150 a 40% a $100 $50 • 20% $0 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022F 2023F 2024F 1111 OCCUPANCY -- ANNUAL GROWTH RATE SOURCE: TOURISM ECONOMICS F= FORECAST ADR=AVERAGE DAILY RATE REVPAR= REVENUE PER AVAILABLE ROOM III, ADR -- ANNUAL GROWTH RATE SOURCE: TOURISM ECONOMICS LEISURE TRAVELER FEEDER MARKETS Applying quantitative and qualitative data to reach travelers most effectively, Newport Beach & Company has divided potential visitor markets into two categories: primary and opportunity. Factors and analysis used to define markets include historical visitation, propensity, household income, market cost efficiency and accessibility. • 4.7 percent of overnight visitors • Nielsen Ranking: 6 • Drive Market/ Daily flight to SNA �CRAMENTO� • 3.8 percent of overnight visitors • Nielsen Ranking: 20 • Drive Market/Daily flight to SNA • 40.8 percent of overnight visitors • Nielsen Ranking: 2 • Drive Market • 5.3 percent of overnight visitors • Nielsen Ranking: 27 • Drive Market • 7.0 percent of overnight visitors • Nielsen Ranking:11 • Drive Market / Daily flight to SNA Primary markets comprise at least 60 percent of all overnight visitors to Newport Beach. Los Angeles, San Diego, Phoenix and San Francisco fall into this category and have the additional benefit of being drive markets, which allows for more marketing opportunities with short planning periods. Opportunity markets have lower overnight visitation but are strong enough for conversion with increased brand awareness and a targeted call -to -action. Many of these markets, such as Denver and Salt Lake City, merit increased marketing efforts as overnight visitation trends up following the ease of COVID-19 restrictions. 0 PRIMARY MARKETS 0 OPPORTUNITY MARKETS • 2.5 percent of overnight visitors • Nielsen Ranking: 30 • Daily flight to SNA DENVER • 1.8 percent of overnight visitors • Nielsen Ranking:16 • Daily flight to SNA • 3.9 percent of overnight • 1.8 percent of overnight visitors visitors • Nielsen Ranking: 40 • Nielsen Ranking: 5 • Drive Market / • Daily flight to SNA Daily flight to SNA COMPETITIVE SET $600 $500 COMPETITIVE HOTEL RATES 70.0% With the perfect combination of affluence, quaint charm, casual glamour and 65.0% 60.0% attention to detail, Newport Beach offers travelers a unique coastal retreat. $400 55.0% Though nowhere else is Newport Beach, understanding the competitive 50.0% W landscape provides important insight. 45.0% $300 p. } Z 40.0% C Q After a thorough competitor analysis, Newport Beach & Company has identified a 35.0% 0 30.0% top competitive leisure traveler markets: Santa Barbara, Santa Monica, $200 25.0% Palm Springs, Beverly Hills, Huntington Beach and La Jolla. 20.0% $100 15.0% All the destinations are small- to mid -sized markets in Southern California, with 111011 10.0% an emphasis on upscale to luxury accommodations. They offer premium dining 5.0% $0 0.0% experiences, great shopping, upscale lifestyle, scenic beaches and a relaxing escape. While each market has distinct offerings within these areas, they hold a similar position in visitor's minds when planning a trip, validated by our digital audience tracking system. We monitor each of these destinations in both performance and marketing efforts. Over the past year, Newport Beach kept in line with the major performance metrics during the COVID-19 recovery period. COMPETITIVE HOTEL OCCUPANCY PP�MSPN�� N��PG� �Q00 NNPN�PSP �PM��J0P��NXv�S g�J�svi QP 5,9\ S�� PN P ONE vf"c oN N PAN R�PRP NVN'C` N`c SP Nfc S 1ON1` SP COMPETITIVE ROOMS AVAILABLE • 9-110 -. • ANAH EI M 31.3% 95 15,449 BEVERLY HILLS 31.2% 478 2,246 DANA POINT 37.8% 355 1,461 HUNTINGTON BEACH 51.3% 193 2,379 I RVI N E 43.1% 111 4,301 LA JOLLA 46.0% 198 2,770 NEWPORT PALM SPRINGS ,0 47.1% 154 5,085 SAN DIEGO 46.1% 126 38,456 SANTA BARBARA 57.5% 256 3,873 SOURCE: TOURISM ECONOMICS CALIFORNIA TRAVEL OUTLOOK J J m 0 Z 0 Z The pandemic and its related public health restrictions caused an unprecedented decline in tourism spending, which fell from $144.9B in 2019 to $65.11B in 2020. 0 When the U.S. border closed to almost all non -essential travel, the international market took the hardest hit, with spending dropping 81 percent in 2020 to $5.313. Meanwhile, the domestic market declined 49 percent to $59.81B. A positive turn came in 2021, as the vaccine became widely available and travel restrictions were gradually lifted. Drive -market visitors began to return, followed by more confident long -haul domestic travelers, business travel and the return of international markets. As a result, tourism spending in California recovered to $97.4 B in 2021. Travel -related spending from domestic visitors is expected to recover to 96 percent to 2019 levels in 2022, while international spending will recover to 60 percent. Total travel -related spending in California is not expected to reach pre -pandemic levels until 2023.Overall, leisure travel could recover to 95 percent of 2019 in 2022, while business -related travel will recover by 70 percent. TOTAL VISITOR SPENDING IN CALIFORNIA b I b I ti�ryo ti�ry� ti ti ti ti 10, OOryOryO�y�� INTERNATIONAL ARRIVALS TO CALIFORNIA- RELATIVE TO 2019. (JUNE 2021-FEBRUARY 2022) - 95% OVERSEAS EUROPE CALIFORNIA TOURISM SUMMARY (ANNUAL PERCENT CHANGE) W73% -97% MIDDLE U.K. EAST AND NORTH AFRICA .. 2015 2016 2017 2018 TOTAL VISITS 3.5% 4.8% 1.9% 2.0% 0.0% 1.6% -50.8% 52.0% 22.6% 6.9% 5.0% 2.7% 1.8% DOMESTIC TOTAL VISITS 3.4% 4.9% 1.9% 2.0% 2.8% 1.8% -48.9 52.4% 19.2% 6.0% 4.5% 2.5% 1.6% LEISURE VISITS 4.1% 5.3% 2.2% 2.2% 2.5% 2.1% -45.3% 51.6% 14.2% 4.7% 3.3% 2.6% 1.5% INTERNATIONAL TOTAL VISITS 5.1% 3.6% 1.6% 1.356 3.0% -1.2% -79.2% 40.2% 1 161.4% 23.7% 12.3% 5.3% 4.3% TOTAL EXPENDITURES ($B) 117.5 121.9 126.4 133.3 140.3 144.9 65.1 97.4 129.5 144.6 155.9 160.8 166.2 %CHANGE 5.5% 3.8% 3.7% 5.5% 5.2% 3.3% -55.1% 49.6% 32.9% 11.7% 7.8% 3.2% 3.3% DOMESTIC 94.3 97.5 101.1 106.2 112.0 116.8 59.8 92.0 112.6 121.0 127.5 130.2 134.4 %CHANGE 4.8% 3.4% 3.7% 5.0% 5.5% 4.3% -48.8% 53.9% 22.3% 7.4% 5.4% 2.1% 3.2% INTERNATIONAL 23.1 24.4 25.3 27.1 28.3 28.1 5.3 5.4 16.9 23.6 28.4 30.7 31.8 %CHANGE 1 8.3% 5.6% 3.4% 1 7.5% 4.3% 1 -0.6% -81.2% 1 1.3% 1 215.2% 39.9% 20.1% 8.0% 3.6% F=FORECAST SOURCE: VISIT CALIFORNIA - NTTO, BEA, TOURISM ECONOMICS U.S. TRAVEL TRENDS INDEX The U.S. Travel Association releases a monthly Travel Trends Index (TTI) report, providing an analysis conducted by Oxford Economics of current trends in travel demand as well as a near -term COVID-19 recovery outlook for the direction and pace of travel to and within the US. As reported in February 2022, the U.S. economy remains strong despite persistent high inflation and geopolitical tensions creating uncertainty. The job market is improving, wages are rising, businesses are increasing investment, and an improved health situation paired with eased restrictions are boosting confidence among leisure and business travelers. Together, these factors should facilitate a spring rebound as the weather warms and the peak leisure travel season approaches. • The pandemic has resulted in $74013 in cumulative losses for the U.S. travel economy through January 2022. • An improving health situation, renewed optimism, pent-up demand, and sizable excess savings underpin the travel industry's recovery. Consumer travel sentiment indexes at 8 percent for percentage of American travelers that are ready to travel in the next 12 months — the highest level since the start of the pandemic. • The pace for DMO/CVB group room nights on the books indicates a dip in 1Q2022, particularly January 2022 due to the impact of the Omicron wave, but a sizable return of Group volume in subsequent quarters. 82 percent of business travel organizations feels their employees are willing to travel in the current environment, up from 54 percent in January 2022. • International travel intentions are strong. In most markets, the percentage of those who intend to travel internationally over the next 12 months was more than 10 percentage points higher in February 2022 than February 2021. Organic search sessions for destination marketing organization websites registered a 26 percent increase over 2019 levels in January 2022. They are on pace for a 32 percent expansion through the first half of February 2022. • Short-term rental demand strengthened in January 2022, rising to 22 percent above its 2019 level. • As of February 2022, higher gas prices have not deterred people from traveling. This was particularly noticeable over Thanksgiving 2021, when road travel returned to nearly pre -pandemic levels and the national average for gas was around $3.40 per gallon. U.S. TRAVEL FORECAST Following one of the most severe economic shocks of the past century in 2020, the U.S. economy vaulted into one of the most rapid recoveries in modern history in 2021. The recovery process is far from complete, however, and the next stage will be trickier to navigate. While an improving health backdrop, solid household finances, and rebounding employment should support consumer spending, the shift from public to private sector -driven growth will be a delicate balancing act and inflation risks remain tilted to the upside. Labor and capital supply suffered extreme duress during the pandemic and are expected to rebound only gradually. The U.S. economy is displaying solid economic momentum, as evidenced by the February 2022 jobs report, yet it also faces shifting headwinds. Though the Omicron wave has been largely contained, higher inflation and greater uncertainty triggered by Russia's invasion of Ukraine have emerged as key risks. It is anticipated that real GDP will grow 3.4 percent in 2022 and slow to 2.1 percent in 2023, but risks are tilted to the downside given the intensifying inflation shock, a growing fiscal drag, and a more hawkish Fed. It is expected that the Fed will raise the policy rate by a total of 175 basis points (bps) in 2022 to rein in inflation. Significant monetary policy tightening has prompted Tourism Economics to lower the GDP growth forecast for 2023 to 2.1 percent from 5.3 percent, with an expectation that growth will slow to 1.6 percent annualized by mid-2023. SOURCES: U.S. TRAVEL ASSOCIATION. TOURISM ECONOMICS DOMESTIC TRAVEL FORECAST While U.S. domestic leisure travel underpinned the faster -than -expected travel recovery, the U.S. domestic business segment lagged and underperformed the expectations set forth in the Fall 2020 forecast. Spending in 2021 for this segment registered 50 percent of 2019 levels, down from 54 percent predicted one year earlier. The domestic business recovery should accelerate in 2022, reaching 76 percent of 2019 levels. This segment will achieve a full recovery in 2024, as of the latest forecast. The return of domestic business travel will help even out the recovery to include urban markets. A generally robust vaccination rollout, improving health situation, easing pandemic -related restrictions, and expansionary fiscal policy measures have supported the unwinding of excess savings and the rotation of consumer spending from goods to services, such as travel. This backdrop has supported the domestic leisure travel segment, which is now expected to reach 96 percent of its 2019 level in 2021 - six percentage points above the fall 2020 forecast. The forecast expects the domestic leisure segment to achieve a full recovery in 2022. The Travel Price Index (TPI), which accounts for travel -specific categories such as lodging away from home and transportation costs, is expected to rebound sooner than previously anticipated following its 5.8 percent decline in 2020. The TPI is projected to increase 10.6 percent in 2021 and remain above 3 percent annual growth in 2022 and 2023, before normalizing to 2.3 percent growth in 2024. The short-term outlook anticipates that the forecasted GDP growth of 3.4 percent in 2022 can withstand Fed tightening, though it is set to slow to 2.1 percent in 2023. The short-term outlook is driven by inflation shock stemming from the Russia -Ukraine war. The geopolitical tensions risk fueling stronger and more persistent inflation, which may affect consumer spending, pandemic response, supply chain impact on business investments, and monetary policies on rate hikes. It is estimated that recovery of international travel to the US should accelerate in 2022, reaching 72 percent of 2019 levels. The latest forecast anticipates that this segment will achieve full recovery in 2024. DOMESTIC LEISURE vs. BUSINESS LEISURE TRAVEL VOLUME - RELATIVE TO 2019 106% 110% 104% 108% fir 916°/ 2022F ' 1 2021 .• 2020 .• 20% 40% vuio 80% 100% 120% ■ BUSINESS ■ LEISURE DOMESTIC BUSINESS TRAVEL SPENDING - RELATIVE TO 2019 120% DOMESTIC AUTO vs. AIR TRAVEL VOLUME - RELATIVE TO 2019 120% o 113% 104% 109 /o 100% 89% 97% 100/o ° 107% 109% 80% 71% 88% 60% 70% 40% 20% 0% 2020 2021 2022F 2023F 2024F 2025F iAUTO iAIR DOMESTIC TRAVEL SPEND FORECAST - RELATIVE TO 2019 DOMESTIC TRAVEL SPEND FORECAST- RELATIVE TO 2019 100% 12o°iD 80% 100% 60% 80% 60% 40% 40% 20% 5 0 0% $270B $88B $136B $206B $252B $277B $284B 2019 2020 2021 2022F 2023F 2024F 2025F $722B $555B $702B $726B $745B $766B $776B 2019 2020 2021 2022F 2023F 2024F 2025F DOMESTIC PERSON TRIPS IN THE U.S. (MILLIONS) TOTAL 2318.0 1582.0 2021 2021.0 2022F 1 2235.7 2023F 2398.2 2024FI 2493.3 2025F 2529.9 %change 1.8% -31.89/6 1 27.8% 1 10.6% 7.3% 4.0% 1.5% By purpose Business 463.9 181.3 249.5 370.7 446.2 484.1 491.1 %change 1.1% 60.9% 37.6% 48.6% 20.4% 8.5% 1.5% Leisure 1854.1 1400.6 1771.4 1864.9 1952.0 2009.2 2038.4 %change 1.9% -24.5% 26.w5% 5.3% 4.7% 2.9% 1.5% Hotel room demand Room nights 1293.1 1 829.9 1 1131.9 1 1290.6 1361.1 1405.4 1 1429.3 %change 1.7% -35.8% 36.4% 14.0% 5.5% 3.3% 1 1.7% F = FORECAST SOURCE: U.S. DEPARTMENT OF COMMERCE -TRAVEL & TOURISM, TOURISM ECONOMICS, US TRAVEL ASSOCIATION INTERNATIONAL TRAVEL SUMMARY Newport Beach & Company understands the importance of international travel to the destination. With higher spending and longer lengths of stays, international travelers are a significant visitor segment for Newport Beach. In 2019, international visitors accounted for $2813 of California's $14513 in tourism spending. Newport Beach has four primary international markets: CANADA► CHINA MIDDLE EAST UNITED KINGDOM Of these markets, Newport Beach & Company directly invests in marketing, media relations and travel -trade with offices the United Kingdom and Canada. For the Middle East and China, Newport Beach & Company is actively exploring opportunities for representation as international restrictions begin to ease. As the destination prepares to welcome increasing numbers of international visitors, Newport Beach & Company will also continue to keep a pulse on the jagged recovery period of ongoing COVID-19 outbreaks, evolving health protocols, safety regulations, and rapidly changing consumer sentiment around travel. INTERNATIONAL VISITS TO THE U.S. BY WORLD REGION - RELATIVE TO 2019 MIDDLE EAST & AFRICA IM ' k. ASIA PACIFIC [MM I l ' EUROPE 13-31ft AMERICAS ■ 2021 ■ 2023F ■ 2025F INTERNATIONAL ARRIVALS TO UNITED STATES - COMPARED TO SAME MONTH 2O19 0% JUN-21 JULY-21 AUG-21 SEPT-21 OCT-21 NOV-21 DEC-21 JAN-22 -10% -20% MOM_ -30% Aft -40% -50% -60% Ak -70% Aal -80% — -90% -100% OVERSEAS t CANADA (AIR) --*-- CHINA t EUROPE MIDDLE UK EAST AND NORTH AFRICA SOURCES: TOURISM ECONOMICS, US TRAVEL ASSOCIATION CANADA MARKET PROFILE A-V Canada is a top inbound travel market for the United States and California. Travelers are drawn to Newport Beach's warm weather and convenient access, with direct flights operating from John Wayne Airport (Orange County) and Vancouver. A majority of its population lives within 100 miles of the U.S. border, making Canada an ongoing opportunity for marketing expansion. The Canadian economy is expected to rapidly rebound once COVID-19 restrictions ease. GDP growth is forecasted at 4.1 percent in 2022, down from 4.3 percent previously, after rising 4.5 percent in 2021. Consumer Price Index (CPI) inflation held steady at a near two -decade high of 4.7 percent year -over -year in November. Inflation is forecasted to remain elevated in the near term, peaking at 5 percent before easing to the mid-2 percent range in early 2023 as supply bottlenecks clear and energy prices fall. The labor market closed on an upswing as 54,700 jobs gained in December 2021 pushed the unemployment rate down to 5.9 percent, the lowest since the pandemic began. Despite temporary disruptions from COVID-19 variants, it is expected that growing inflation concerns and a tight labor market will prompt the Bank of Canada to begin raising rates in July 2022, and again in October. It could start lifting rates even sooner and more quickly if variants prove less harmful to the economy, but it is believed that the Bank will stay on a cautious path given its apprehensions about high household debt and overvalued house prices. Notwithstanding economic concerns, Canadians are more willing to travel to destinations that are completely different from their own home or culture. They are aware that every trip is a "privilege" and hope for experiences that reflect that mindset. Despite feeling cautious towards travel, a new wave of excitement is bubbling for Canadians as they chase greatness to discover their greatest trip ever. VISITATION & SPENDING FORECAST (INDEXED TO 2019 LEVELS) 103 104 106 107 108 109 99 99 79 79 23 22 18 19 2020 2021 2022 2023 2024 2025 2026 ■ VISITATION ■ SPENDING SOURCES: TOURISM ECONOMICS, VISIT CALIFORNIA CHINA MARKET PROFILE Though consumer confidence is growing in China, the pandemic has introduced a predictable pattern of spikes and dips for tourism: desire for travel, impeded by sporadic COVID-19 outbreaks. Demand for domestic travel remained weak in Q4, though momentum appeared to begin stabilizing in December 2021. Nominal infrastructure investment returned to YOY growth as project approvals and financing increased, while corporate investment growth picked up further. This partly offset the weakness in consumption and real estate investment, which will continue to affect economic activity this year as Chinese authorities maintain a zero-COVID-19 approach. Meaningful and front -loaded policy support are expected to shore up growth, but the risks to forecasts are skewed to the downside. Various factors affect Chinese consumers' willingness to travel internationally. They want to see close to zero COVID-19 cases in a destination country, with 86 percent rating this as a top -three factor. As the world adjusts to endemic COVID-19 with outbreaks of new variants, this scenario may be unlikely in the near future. The second most important factor among 84 percent of Chinese travelers is the removal of quarantine in China upon return. As of December 2021, 7 percent of airlift from China to California has recovered. As international opening for tourism continues to be delayed in the absence of any policy announcements, outbound leisure travel from China will likely be slow to return. Despite uncertainties, opportunities are emerging with recent trends. Unique experiences, offerings and services that make a trip memorable or more convenient are driving a disproportional demand for premium and budget hotels among Chinese travelers, according to a McKinsey survey. As consumer confidence grows, Chinese travel spending may also slowly rebound, forecasted to recover to 36 percent in 2022, 72 percent in 2023 and 102 percent in 2024. VISITATION & SPENDING FORECAST (INDEXED TO 2019 LEVELS) 97 102 102 107 108 113 69 72 35 36 9 11 5 . _ 3 2020 2021 2022 2023 2024 2025 2026 ■ VISITATION ■ SPENDING SOURCES: TOURISM ECONOMICS, VISIT CALIFORNIA MIDDLE EAST MARKET PROFILE With high in -market spending and an expectancy of a luxurious lifestyle vacation, the Middle East is a key international opportunity market for Newport Beach & Company. Primary markets within the Middle East include the United Arab Emirates (UAE), Saudi Arabia and Qatar, which are all members of the Gulf Cooperation Council (GCC). The GCC, a unified economic agreement between member countries, establishes a customs union, common market and common currency. They have some of the fastest -growing economies in the world, despite COVID-19 near -term headwinds, mostly due to a boom in oil and natural gas revenues. A strong growth momentum in the UAE through 2022 is anticipated as the delayed Expo 2020 Dubai boosts the recovery. Non -oil GDP growth of is forecasted at 3.8 percent in 2022 and 2.5 percent in 2023. Expansionary government policy is expected to continue to provide impetus to activity and the recent reform agenda should also bear fruit. In Saudi Arabia, it is forecasted that the non -oil sector will see a GDP growth of 2.5 percent in 2023, with overall GDP growth at 4.6 percent. The government is committed to fiscal sustainability with planned improvements on spending efficiencies and improved banking conditions. Economic recovery for Qatar is expected in 2022, with a forecasted GDP growth of 3.6 percent in 2022 and 3.4 percent in 2023 to 2024. Recovery will be supported by higher spending, ongoing outlays ahead of the 2022 FIFA World Cup, and rising gas production. The outlook for visitation from the Middle East is promising: Travel spending is forecasted to recover to 72 percent in 2022, 85 percent in 2023 and 90 percent in 2024. As of December 2021,119 percent of airlift from Middle East to California has recovered. VISITATION & SPENDING FORECAST (INDEXED TO 2019 LEVELS) 94 94 82 85 86 90 89 94 69 72 54 48 28 29 2020 2021 2022 2023 2024 2025 2026 ■ VISITATION ■ SPENDING SOURCES: TOURISM ECONOMICS, VISIT CALIFORNIA UNITED KINGDOM MARKET PROFILE As one of Newport Beach's most longstanding markets, the United Kingdom continues to be an important opportunity for international visitors. The near -term growth forecast has been adjusted due to recent surges in COVID-19 cases in the United Kingdom, causing greater consumer caution and forcing large numbers of people to isolate. However, as after previous waves, the subsequent rebound should be strong. GDP growth of 4.5 percent is expected in 2022, down from 4.9 percent in January 2022. The forecast for 2023 has been nudged down to 2.7 percent from 2.8 percent. Monthly GDP data suggests the economy enjoyed stronger momentum in late fall 2021, with social consumption sectors performing particularly well. Furthermore, the Office for National Statistics (ONS) has made large favorable revisions to the historical data for the pandemic period, which means that the output measure of GDP is now reported to have passed its pre -pandemic level in November 2021. International travel sentiment in the United Kingdom is slightly higher than the global average, with 21 percent of persons 16 or older considering travel to U.S. anytime versus 20 percent of the global average. A Kantar study found that two in three people in the United Kingdom are planning to travel, with 10 percent of those planning travel to North America. VISITATION & SPENDING FORECAST (INDEXED TO 2019 LEVELS) 102 104 104 106 106 108 94 95 60 61 15 15 9 8 2020 2021 2022 2023 2024 2025 2026 ■ VISITATION ■ SPENDING SOURCES: TOURISM ECONOMICS, VISIT CALIFORNIA MEETING PLANNER RESEARCH The Group/Meetings segment has always been an integral part of hotel demand in Newport Beach representing almost a third of all rooms sold between 2014 and 2019. Group demand became almost non-existent in April 2020 following the outbreak COVID-19, travel restrictions and public health measures aimed at containing the pandemic. After an 80 percent decline in 2020, the group segment demand more than doubled in 2021 to 81,000 room nights, but remained well below its 2019 benchmark of 251500. In terms of revenue, groups have represented a lower share than leisure. The group segment ADR declined 1 percent last year while transient ADR increased more than 17 percent. Room revenue will remain below the 2019 benchmark this year, but it is expected to see more than $84M in room revenue by the end of 2024. NEWPORT BEACH GROUP SHARE OF MARKET .. 2014 DEMAND 38.7% PREM/DISC 12.3% REVENUE 43.5% 2015 38.1% 12.1% 42.7% 2016 28.3% -10.6% 25.3% 2017 28.5% -11.5% 25.2% 2018 27.5% -13.6% 24.6% 2019 27.2% -13.7% 23.5% 2020 9.7% -20.8% 7.7% 2021 14.0% -33.4% 9.4% 2022F 23.0% -25.0% 17.2% 2023F 24.7% -18.9% 20.0% 2024F 27.6% -19.0% 22.3% NEWPORT BEACH GROUP OUTLOOK UM YEAR 2014 DEMAND 256,464 r A.• $198 REVENUE $50,886,166 2015 260,775 $209 $54,378,652 2016 251,374 $217 $54,445,098 2017 247,302 $223 $55,111,524 2018 245,941 $228 $56,082,142 2019 251,483 $224 $56,395,829 2020 40,162 $219 $8,797,931 2021 80,770 $217 $17,524,473 2022F 193,562 $260 $50,310,530 2023F 236,521 $291 $68,917,310 2024F 279,765 $302 $84,372,494 SOURCE: TOURISM ECONOMICS F = FORECAST MEETING PLANNER SOUTHWEST (AZ/NM/TX), 3% SOUTHEAST,3% PACIFIC NORTHWEST, 2%�A RESEARCH W EST, 5°/ INTERNATIONAL,1% SOURCE: SIMPLEVIEW ANNUAL GROUP HOTEL ROOM DEMAND 300,000 300% 250,000 250% w Q200,000 ` 200% ' m w In 150,000 ' 150% 0 z I m N z 100,000 (O' 100% Q r 50,000 ` 50% 0 0% II DEMAND -- Y/Y GROWTH RATE AVERAGE HOTEL GROUP RATE ANNUAL PERFORMANCE $300 120% W H Q H $250 100% _ a � $200 80% 0 Lu = J a Q $150 60% Z Z m Z w Q Q $100 40% $50 • 20% $0 0% I1 ADR -- Y/Y GROWTH RATE SOURCE: TOURISM ECONOMICS F = FORECAST - r y - - - till-: ..w _rl � Aw Ic tw - �j � � „fl- - f `�~ A tee-° F�� , ...�.�.. '� �.- - • -. -.� -.ice ✓� �, ire _., p.11r,"i- � �--.. ■ . �, .mom jp- ulv 'RIBh1 s I_ I_T s 5_Wa = A N 1 98-VISIT NEWPORT BEACH INC. - LEISURE MARKETIN h_ 08 VISIT NEWPORT BE - LE 112 DINE NEWPORT BE 116 ENTERPRISE NEWPORT BEAC - 120 CELEBRATE NEWPORTZJEAC _ 122 ..VIDEO NEWPORT BEACH- - 96 FISCAT'IrARS75TT& 2024 DESTINMMM BUSINnS PL N EW PORTBEACHAN DCO.COM 12-52 VISIT NEWPORT BEACH, INC. Lti,URE MARKETING TOURISM -OCCUPANCY TAX (TOT) FUNDING Visit Newport Beach, Inc. Leisure Marketing (TOT) shares the incredible Newport Beach brand story with the world through the visitors' consideration, research, planning and purchase process. From inspiring visitors to take a trip to Newport Beach to creating a place to share memories, Visit Newport Beach, Inc. engages with the visitor at all points in the journey. Leisure Marketing is funded by a portion of Transient -Occupancy Tax (TOT), the third -largest source of revenue for the city of Newport Beach, which is paid by visitors staying in hotels and short-term vacation rentals. The Leisure Marketing Team is focused in two functional areas of specialty: -Destination Brand Development & Storytelling -Destination Marketing Strategy & Business Intelligence. DESTINATION BRAND DEVELOPMENT & STORYTELLING Visit Newport Beach, Inc.'s media -relations efforts hinge on strong, ongoing relationships with targeted media, bloggers and social influencers. Nurturing current relationships, growing our owned media database and increasing media visits to the area are top priorities. Sharing the Newport Beach brand story through respected media outlets not only gives the destination credibility, but also allows the audiences to discover the destination in an emotive manner. TARGET MEDIA CHANNELS I. Domestic Consumer & Travel Trade • Media Relations: • Chart consumer PR plan leveraging destination verticals to pique media interest • Develop compelling story angles centered around the Newport Beach lifestyle and its brand -defining events • Proactive pitching to local, regional and national media to secure stories • Facilitate in -bound media requests • Create custom itineraries for visiting media • Plan familiarization (FAM) tours around aficionado angles • Develop new, leading -edge online newsroom on company -managed website to promote all business units II. International Consumer & Travel Trade Media Relations: • Search for a global public relations agency who has experience, offices and boots on the ground in the three target global markets as well as domestic (NYC, LA). • Visit Newport Beach will utilize a single global agency and, in turn, re -opens Newport Beach offices and market representation in Canada, Middle East and United Kingdom. • Anticipate and create partnerships for each market which has varying dependence upon intermediary travel agencies to book travel. • Develop stories that resonate with these international markets. • Develop custom itineraries for international visiting media and plan familiarization (FAM) trips for both small and large groups. NATIONAL, REGIONAL, AND LOCAL BUSINESS -TO -BUSINESS MEDIA RELATIONS: • Drive Newport Beach & Company, Visit Newport Beach, Inc., and the Newport Beach/ Orange County tourism/meetings industry news to local and regional media • Develop communications plan to promote Newport Beach & Company President & CEO, Gary Sherwin • Develop a crisis communications plan for the company and destination SEATTLE O O PORTLAND SAN FRANCISCO ® PALM SPRINGS ®O LOS ANGELES 0 ® DALLAS SAN DIEGO PHOENIX INLAND EMPIRE LAS VEGAS HOUSTON AUSTIN NEW YORK CHICAGO ® DENVER BUSINESS -TO -CONSUMER (132C): CONSUMER & TRAVEL TRADE MEDIA 1 MARKETS (DRIVE -MARKETS) Los Angeles TIER 2 MARKETS (FLY -MARKETS) Las Vegas OPPORTUNITYTIER (FLY -MARKETS) Chicago Greater Orange County San Francisco Bay Area New York Inland Empire Dallas Seattle Palm Springs Houston Portland San Diego Austin Canada Phoenix Denver United Kingdom China Middle East CONTENT DEVELOPMENT Brand Identity, Positioning & Management Serving as an in-house creative services agency, Visit Newport Beach, Incas brand management team brings tremendous graphic design, art direction, photography, videography and creative direction to Visit Newport Beach, Inc. and all its business units. This team helps drive the new brand advertising campaign creative and serves as the central source for brand voice, brand look and brand identity for Visit Newport Beach, Inc. and all its business units. Visit Newport Beach, Inc.'s destination marketing strategy team develops integrated multi -channel advertising and promotional media plans and buys in key target markets that are on -brand and integrated with the other marketing disciplines to: • Increase year-round leisure travel from day-trippers and first-time visitors • Extend visitors' length of stay • Encourage repeat visitation ADVERTISING CREATIVE DEVELOPMENT In the fiscal year prior to COVID-19, Visit Newport Beach, Inc. developed and launched a new brand identity system. A new brand creative is in development for launch in FY2023 incorporating the brand identity system. The creative is being produced by an outside agency using prior research, and a new library of assets was deployed across advertising channels. The creative and brand positioning in the new campaign features the headline, "YOU'VE ARRIVED." The campaign will play upon the duality of the headline: physically arriving for vacation in Newport Beach and metaphorically arriving for an aspirational vacation. COLLATERAL Visit Newport Beach produces annual collateral and sales promotion materials to assist the visitor while they are planning their trip and to guide their journey while in the destination. Visit Newport Beach's collateral features the Newport Beach Official Visitor Map & Neighborhood Guide. The Newport Beach Official Visitor Map & Neighborhood Guide is an in -market guide to exploring the city's unique neighborhoods with detailed maps showcasing dining, shopping and places to explore in Newport Beach. More than 100,000 copies are printed annually and distributed throughout hotels, resorts, Fashion Island and the Visit Newport Beach, Inc. Concierge Center. VIDEO Visit Newport Beach understands the importance of video in inspiring visitors on both social media and broadcast/OTT platforms. Visit Newport Beach brings the destination to life through screens year-round with a robust production plan utilizing best practices for all platforms. It's safe to say video is one of the most valued components of marketing today. Newport Beach & Company has stayed ahead of the curve in recognizing the value of video production and has championed video investment and filmmaking. The team will also prepare bespoke video content for social media, campaign launches, announcements, live event coverage and more to further provide more experience for its following. Last, the team will be bringing in creatives, creators, ambassadors and influencers to craft more content and well -round its video social strategy for maximum engagement and brand awareness. SOCIAL MEDIA Visit Newport Beach invests in its social media programming, leveraging best -in -class owned and contributed content to inspire and convert consumers. Newport Beach & Company recognizes social platforms as vital in inspiring potential travelers, for travel research and as a resource for in -market guests. This fiscal year, it's the organization's goal to "turn up the volume" on our social content to "break through" the clutter, build a community and be a leader in the industry with this three -prong approach: Aesthetics and Content Creation: Bringing the luxury lifestyle of Newport Beach to life is a top priority for the social team at Newport Beach & Company. The team is investing in curating a gorgeous aspirational feed to lure in visitors by showcasing all destination differentiators such as scenery, neighborhoods, recreation, lifestyle, shopping, culinary and hotels and resorts. A curated image and video selection for in-house work and user generated content will be implemented to ensure a consistent look and feel. Social video creation is also of the utmost priority moving into the next business cycle. Evergreen short bite videos will be launched several times per week to educate and inspire visitation and showcase local businesses. The team will also leverage what's trending in-app from audio and editing applications to savvy community engagement and more, Newport Beach & Company will keep its finger on the pulse to stay fresh and further build its community. In addition to in-house content creation, budget will be allocated for content creators and creative freelancers to further maximize content deliverables. Building a Community and Community Management: Building a community builds loyalty, enhances following and boosts engagement. The social team will implement community building and community management protocols to engage with following, partner accounts, other relevant accounts and brands. New Platforms: Moving into FY2023, the team is proud to enter a new platform, TikTok and will continue to invest in its success. The team will also focus on monitoring up-and-coming social media channels, while maximizing the offerings of top social platforms to better coincide with all advertising and marketing efforts to reach the visitor audience. BLOG STRATEGY The Visit Newport Beach blog offers fresh and trending content to consumers each week. This original content shares what's new in Newport Beach: information on upcoming events, local profiles and more. All blogs are written by a dynamic group of guest bloggers and in-house marketing team members who each bring a unique perspective to the destination. The Visit Newport Beach blog keeps the website fresh with new content based on travel trends or consumer insights. E-COMMUNICATIONS Visit Newport Beach keeps visitors, partners, meeting planners and local residents informed through a robust and comprehensive e-communications program. This fiscal year, the marketing team will be evaluating its current newsletter offerings for ways to improve, engage and grow lists. The team will explore ways to improve content and showcase multi -media assets through e-communications. Overall, the goal is to build community, present inspirational and informational content and keep consumers and partners informed on the latest destination and organization happenings. • CONSUMER E-NEWSLETTER: Distributed to locals and visitors, the consumer e-newsletter provides information about the latest Newport Beach events and news. The e-newsletter, in collaboration with the Visit Newport Beach blog, is distributed with original consumer -focused content. • INDUSTRY E-NEWSLETTER: The Tourism Matters newsletter showcases trends in the destination, economy and local markets, while providing monthly updates about Newport Beach & Company to partners and stakeholders. The public relations team will be amping up corporate communications efforts within this newsletter in the coming business cycle. DESTINATION MARKETING STRATEGY & BUSINESS INTELLIGENCE The Destination Marketing Strategy & Business Intelligence Team analyzes customer and campaign performance, forecasts, visitor profiles and in-depth, ongoing analysis and reporting of all performance metrics, standards, and benchmarks. That same team then matches that customer with the most opportune media and channels each specific consumer prefers or uses. That pairing creates highly targeted campaigns that reach the right customer at the right time. They then work with the Brand Development team to ensure the messaging of each creative piece is paired to the right customer who receives it at the right time via the media channel most likely to generate the greatest return on investment to Newport Beach. As Visit Newport Beach begins to revive its international sales and marketing efforts, the Marketing Strategy team also will lead the organization's efforts to reach the travel trade, tour operator, wholesaler, and travel agent. This team also manages project workflow, budgeting, and day-to-day project management for all initiatives. The team deploys the message to potential consumers, manages visitor resources, and tracks visitor patterns and behaviors. The primary areas of Destination Marketing Strategy & Business Intelligence Team include the following functional areas of marketing: advertising, research, business intelligence, international marketing (consumer and trade), industry relations, strategic partnerships, visitor services, hospitality training and all forms of digital marketing. ADVERTISING (PAID CHANNEL) Visit Newport Beach, Inc.'s Destination Marketing Strategy Team develops integrated advertising and promotional media plans and media buys in key target markets that are placed in digital and terrestrial media channels and programming that are on -brand and are integrated with the other marketing disciplines to: • Increase year-round leisure travel from day-trippers and first-time visitors • Extend visitors' length of stay • Encourage repeat visitation As Visit Newport Beach emerged from the first year following the pandemic, the Marketing team has taken a more forceful yet highly targeted advertising media buys that span need, shoulder and peak periods year-round. Newport Beach is facing an onslaught of competitive advertising. To break through the clutter, tell our destination story compellingly, and increase visitation and visitor spending, Visit Newport Beach recommended the largest media buy in its history, with sustained support for targeted marketing at a level not seen before. With a traveler planning window that has shrunk from 30 days to mere days, Visit Newport Beach's campaigns will run year-round with seasonal flights that change imagery, copy points messaging and media planning to ensure that Newport Beach is kept top of mind. WEBSITE One of Visit Newport Beach's most valuable resources is VisitNewportBeach.com. With over a million visitors annually, it provides the immediate visitor assistance on Newport Beach. The flexibility to edit content benefits both the visitor by providing up-to-date experiences and stakeholders to update their information as they improve their products. VisitNewportBeach.com provides hotel, dining and activity information from stakeholders, neighborhood guides, and partner offers and events. They website is key in the dreaming, planning and booking phases of the traveler cycle. The website will be further leveraged with the introduction of micro -sites for major initiatives. For major events and initiatives, we will create customize pages with engaging content and educational resources designed to complement the initiative. VisitNewportBeach.com will contain guides for the information visitors are seeking. Interactive guides include information for weddings, pet travel and more. MOBILE MARKETING Creating an in -destination mobile experience is a key way to tap into customers. Over 70 percent of travelers always use their smartphone when they travel (https://www.thinkwithgoogle.com/consumer-insights/consumer-travel-smartphone- usage/). To capitalize on these travelers, Visit Newport Beach will develop, a mobile concierge platform built into the existing, dynamic website. The platform will pull from our existing partner database, directing visitors to Newport Beach businesses that meet their preferences and geographic location. Providing a curated experience for visitors based on their preferences, Visit Newport Beach can more create a better experience for our guests, and hopefully encourage repeat visitation. VISITOR SERVICES Visit Newport Beach, Inc. works with our community partners and visitor concierges to provide helpful information and enhance the visitors' experience. The concierge team will provide the community with content -rich visitor information through destination maps and visitor guides. SEASONAL CAMPAIGNS: PRIMARY NEED PERIOD: Winter Off Season (November- February) SECONDARY NEED PERIODS: Fall Shoulder Season (September -October) Spring Shoulder Season (March -May) SPECIALIZED NEED PERIOD: Summer Peak Season —Midweek Only (June -August) By monitoring travel patterns, Visit Newport Beach can identify any other potential need periods and deploy resources accordingly. Our primary advertising markets are Los Angeles, San Diego, Phoenix and Las Vegas. These markets represent approximately half of all overnight visitors to Newport Beach. They are an ideal target for these seasons; all are within a short drive or flight, and the regions are already familiar with Newport Beach. There are also secondary and exploratory markets Visit Newport Beach will continue to monitor as potential media targets. They are San Francisco, Sacramento, Salt Lake City and Denver. The marketing mix comprises a strong digital focus to the media buy, allowing messaging to reach the right audience at an efficient price specifically via retargeting. Linear broadcast and Over -The -Top (OTT) streaming has become a significant part of the destination storytelling marketing strategy with specialized broadcast TV promotions for THE OSCARS", and PRIMETIME EMMYS°. Out -of -Home (OOH) advertising via static, digital and animated outdoor advertising also is a large part of our storytelling strategy to build brand awareness in key advertising markets. BUSINESS INTELLIGENCE, MARKETING RESEARCH & PLANNING Visit Newport Beach, Inc., conducts tourism destination research to support brand and marketing initiatives. Research initiatives include ad effectiveness studies, visitor profile studies and economic impact reports. Investing in research helps define the Newport Beach traveler and allows the Marketing team to best target the appropriate audiences who make the largest impact to tourism in Newport Beach.ln FY2022, Visit Newport Beach, Inc. began subscription to the Zartico destination operating system, which collects and displays numerous visitor data points from geo-location via mobile phones to provide visualizations of visitor traffic, volume and spend in the destination. STRATEGIC PARTNERSHIPS Marketing & Strategic Partnerships works to promote the destination with a collaborative effort between leisure travel and local community. These partnerships will elevate our brand at Visit Newport Beach and our partners by promoting our destination through strategic integrated marketing campaigns that include paid, earned, owned and trade initiatives. TRAVEL TRADE Travel trade encompasses travel agents, tour operators, online travel agencies and airline suppliers who book individual or group tours for travelers. In the United States, most consumers book travel directly via an online booking source, while international travelers in many countries continue to rely on a third -party travel agency or tour operator to assist with travel planning and booking. Visit Newport Beach will work with travel trade agencies that specialize in behaviors of travelers and travel trade representatives in those markets. INTERNATIONAL MARKETING International visitors continue to be vital to Newport Beach tourism. In close collaboration with our international public relations and travel trade agencies, the Marketing team educates and promotes Newport Beach to international travel -trade companies and travel media in order to generate visitation to Newport Beach. Key international markets previously included China, Middle East, United Kingdom, and Canada. Renewed efforts include the following markets: Canada, Middle East and United Kingdom. Visit Newport Beach will not be re-entering the China market for quite a few years as the country is still recovering from COVID-19 impact. IPW 2024 In June 2024, IPW, the world's biggest travel industry trade show, will be returning to the Los Angeles area. Thousands of the top international travel agents and travel media will be in our backyard, providing invaluable exposure to a lucrative audience. Visit Newport Beach is planning a tradeshow presence at the event. For 2023, Visit Newport Beach Media Relations Team will attend the Public Relations one -day track when San Antonio hosts 2023 IPW. Additionally, Visit Newport Beach hopes to bring key agents and media to Newport Beach before and after the trade show for a richer experience in the destination. UNITED KINGDOM TRAVEL TRADE & PUBLIC RELATIONS INITIATIVES Visit Newport Beach contracts directly in the United Kingdom with Black Diamond —a full -service public relations, travel trade and strategic partnership agency. Black Diamond represents Newport Beach as a tourism and vacation destination throughout the United Kingdom. Black Diamond represents Visit California, giving Visit Newport Beach advantages through this unique partnership with an agency that thoroughly understands both California and Newport Beach. Each February, Visit Newport Beach, Inc. conducts its largest internationa campaign - the Newport Beach UK Honours. The fully integrated marketing campaign includes consumer advertising, travel -trade education, media relations, radio interviews and TV appearances. The campaign concludes with a star-studded event to coincide with the British Academy of Film & Television Arts Awards (BAFTA) ceremony in London. Visit Newport Beach, Incas entire United Kingdom campaign is a unique collaboration with the Newport Beach Film Festival. Through the promotion of the Newport Beach Film Festival at the same time as the BAFTAs, Visit Newport Beach capitalizes on celebrities and their star -power to promote the Newport Beach brand lifestyle to a high -income United Kingdom traveler looking for warm - weather, luxurious beach destinations. CANADA As a top visitor market with easy accessibility, Visit Newport Beach will elevate its presence in Canada through strategic partnerships to help reach the media and travel trade audiences most effectively. VISIT JEWPORT BEACH, GROUP SALES & MARKETING INC. 'ISM BUSINESS -IMPROVEMENT DISTRICT (TBID) FUNDING Visit Newport Beach, Inc. Group Sales actively brings valuable group meetings and conference business to the Newport Beach Tourism Business Improvement District (TBID) hotel properties and local businesses. The Newport Beach TBID consists of nine hotel properties: • Balboa Bay Resort • Hyatt Regency John Wayne Airport Newport Beach • Hyatt Regency Newport Beach • Lido House • Newport Beach Marriott Bayview • Newport Dunes Waterfront Resort & Marina • Pendry Newport Beach • Renaissance Hotel Newport Beach • VEA Newport Beach, A Marriott Resort & Spa The purpose of the TBID agreement is to directly increase group business (meetings and conferences) for partner hotels. To deliver on the TBID promise, Visit Newport Beach Group Sales fosters current client relationships and attracts new meetings and conferences to Newport Beach. Through aggressive direct selling, innovative marketing initiatives and strong hotel partnerships, the efforts of the Sales team result in increased group hotel room nights and additional revenue to TBID hotel partners. GROUP SALES The Group Sales national account directors are responsible for attracting group meetings business to TBID hotel properties. Their mission is to present their clients a dual message of promoting Newport Beach and the TBID hotel partners as a premier meetings destination as well as touting the superior customer service, sales experience and team talents of Visit Newport Beach The Group Sales team earns valuable contacts through tradeshow attendance, sales missions and other relationship -building activities. Through a rigorous tradeshow schedule, the team continues to elevate its tradeshow presence with a dynamic, industry -leading tradeshow booth experience. The Visit Newport Beach tradeshow booth in its various formats and sizes continues to welcome and wow meeting planners and even the competition. CONFERENCE SERVICES During the meetings planning process, the team offers clients insider perspective on Newport Beach. Conference Services assists with connecting meeting -planner clients to local vendors, venues and services. The Conference Services team forges strong partnerships with local businesses to ensure the meeting planners receive premier service and the most positive experience for their attendees. Additionally, the team works with meeting planners to help build attendance for their upcoming meeting in Newport Beach. Through an online, meeting -planner toolkit, the Conference Services and Marketing teams plan to build a suite of useful online tools to help planners promote their Newport Beach meetings to build attendance and encourage pre -and -post conference leisure stays. MARKETING The Newport Beach & Company Marketing team is divided into two functional areas: Marketing & Strategic Partnerships and Destination Storytelling teams. Marketing services and integrated marketing campaigns to drive overarching brand awareness of Newport Beach as a premier meetings destination. It also promotes Group Sales as an elite sales team that services its meeting -planner clients with industry -leading sales and services. The Marketing & Strategic Partnerships team comprises digital marketing, marketing research, graphic design, email marketing, brand development and advertising services. The Destination Storytelling team provides public relations, social media, content marketing, video storytelling and earned media services to tell the Visit Newport Beach story to the meeting planner audience. • MARKETING & STRATEGIC PARTNERSHIPS The Marketing & Strategic Partnerships team creates the marketing vehicles or channels to distribute the destination storytelling and sales messages. They create websites, email templates, graphics, design, art direction, events, marketing research, advertising campaigns, and media buys as ways to distribute content that the Destination Storytelling team creates. The goal with those marketing channels is to create effective and efficient ways to reach targeted meeting planners with the right message at the right time and in the right format (e.g. website, tablet, mobile, email, social media, video, events, etc.). Through those channels the goal is to educate the planner about the meetings destination and the value proposition of working with the Group Sales team to drive incremental booked meetings in Newport Beach. Newport Beach & Company's Marketing & Strategic Partnership team manages integrated, digital and traditional marketing campaigns to educate meeting planners about Newport Beach and drive incremental leads to the Group Sales team. Over the next two fiscal years, they will lead the creation of a new meetings website and new brand campaign with input and advice from the Group Sales team. They will execute co -branded events (combining leisure and meetings clients/media) events in Canada and in the United States to create larger, more cost-effective events. And, they will provide the marketing research and analytics to foster research -driven sales and marketing decisions. This team will use digital marketing (websites, email, social media, blogs) to connect with meeting planners, which is one of the most vital and efficient ways to reach targeted planners in key markets. This includes pre -and -post tradeshow email marketing, client event e-invitations and a new meeting planner e-newsletter. With refinement and improved messaging, group e-communications will serve as a key marketing and educational tool to reach planners and potential clients —keeping Newport Beach top -of -mind. This team will work closely with Group Sales to ensure these communications reflect the appropriate audience and tradeshow in a timely, most effective manner. • DESTINATION STORYTELLING The Destination Storytelling team provides public relations, social media, content marketing, video storytelling and earned media services to tell the Visit Newport Beach story to the meeting planner audience. This team crafts the overarching narrative and brand story about the destination and the value of working with Group Sales through everything they create —from videos to television content for Newport Beach TV, from blogs and social media posts to email campaigns, and from public and media relations. This team will put a renewed focus on generating free, positive earned media about Newport Beach as a premier meetings destination in industry trade publications and regional media surrounding Newport Beach. The overarching goal of this team is to keep Newport Beach and the sales team top -of -mind for media or influencers writing about conferences and meetings locations. Through social media engagement and new, original content development, this team will keep planners informed on the latest about the destination, its premier sales team and industry trends. Linkedln and blogs will continue to be the area of focus for the destination storytelling with an added emphasis to provide individualized content for each national account director to send through their personal social media connections to form lasting bonds with clients. The strong, in-house video production team elevates the destination and sales storytelling capabilities and transports planners and potential clients to Newport Beach via virtual or visually stunning video experiences. Sizzle reels shown at conferences, stunning drone aerial footage and 360-degree tours of hotel meeting space create a more vivid picture of the destination. Video in all of its formats will continue to be an essential tool in the coming fiscal years. DINE NEWPORT BEACH Since 2013, Newport Beach & Company and the Newport Beach Restaurant Association (NBRA) have partnered to create the culinary consumer -facing entity: Dine Newport Beach. Dine Newport Beach's purpose is to brand, promote and enhance the economic vitality of the culinary community, all of which have been successful in moving the needle to bring business through the doors of Newport Beach dining destinations. In June 2021, the Newport Beach city council voted to dissolve the Newport Beach Restaurant Association, which consequently demobilized Dine Newport Beach. Based on feedback from the Newport Beach culinary community, there is a resounding desire to reconstruct a culinary collective "2.0" as individual dining establishments are "better together," accessing greater marketing for tangible benefits that positively ripple through the entire community. This fiscal year, Newport Beach & Company with lead a community task force and begin exploring a re -imagined Dine Newport Beach "2.0" model to serve the dine community. Here are the priorities for the culinary initiatives: FORM EXPLORATORY CULINARY TASK FORCE: Newport Beach & Company has listened to the local culinary community and heard the desire to bring back an umbrella organization for dining destinations. Newport Beach & Company will first assemble key culinary stakeholders to provide input, point -of -views and ideas for a re -imagined network of dining destinations. This group of strategic advisors will have the opportunity to chart a new culinary course for the evolution of Dine Newport Beach with a completely refreshed strategy and blue print. RE -IGNITE APPETITE FOR NEWPORT BEACH'S CULINARY COMMUNITY: As the longest running restaurant association in the U.S., Newport Beach Restaurant Association/Dine Newport Beach made significant strides breaking through to targeted culinary aficionados in the Golden State. Year-round high -performing marketing coupled with the annual Newport Beach Restaurant Week created a prominence and a draw to visit Newport Beach for its culinary destinations on their own right. Newport Beach & Company by way of Visit Newport Beach will continue placing priority on the culinary audience and serve up leading digital culinary content year-round. Through a highly -targeted mix of video production, social videos and photos, culinary influencers, landing pages and advertising, Newport Beach & Company will invest in tactics to place culinary front -and -center as a key tourism driver for the destination and local businesses. BRING BACK COMMUNITY EVENTS: A much -anticipated return for diners and restauranteurs, Newport Beach & Company will explore bringing back Newport Beach Restaurant Week, an economic generator for the culinary community during need periods. In addition, Newport Beach & Company will consult and/or facilitate on creative culinary events and promotions for neighborhood groups and restaurant segments to drive revenue. ANCHOR N11ANCHOR RESTAURANT' e RESTAURANTS DINE LOCAL. SUPPORT LOCAL. f +1 ANCHORN6 RESTAURANTS rSMMII�lTMIRANIN ryrv�ncarwnwRTa NtS DINE LOCAL ANCHOR&RESTAURANTS . r OINi LOCAL. 6YPIP O RT LOCAL. PURCHASE GIFT CARDS LEAVE POSITIVE ONLINE REVIEWS SPREAD THE WORD TO SUPPORT TIP GENEROUSLY ■ gk'CN REsr,,- 3° DINE 'z ti PASS. ` Awl fAi. pA I Hk.W IN. l - [, f i� V — 8P'�H RESrgUR 9 DINE PASS z�PAs EATORINK.WIN. jI Note: Newport Beach Restaurant Week and Dine Newport Beach creative shown above represent examples of Newport Beach & Company's previous work on behalf of Newport Beach Restaurant Association. New culinary marketing and creative will be developed to reflect the new Dine Newport Beach 2.0 vision, mission and goals. The examples listed above are of past work only and are not reflective of future creative, advertising or digital marketing. ENTERPRISE NEWPORT BEACH O EN I'ERPRISL NEWPORT BEACH In our pre-COVID-19 world, local merchant associations partnered with Newport Beach & Company for brand development, omni-channel marketing, promotions and strategic events to activate visitation that generated positive economic impact. With the loss of merchant association funding through the City of Newport Beach, Newport Beach & Company has an opportunity to re -imagine this business unit to take it from the ground level to big picture. Newport Beach is known as a collection of 10 distant villages, each with their own culture, charm, history and flavor to explore and experience. This fiscal year, Newport Beach & Company will implement a greater overarching strategy and investment for Newport Beach neighborhoods that will drive tourism to all corners of the destination to positively impact local businesses. Newport Beach & Company will provide travelers with a comprehensive navigational overview of the destination and complete 3601 refreshed neighborhood features with microsites, content and storytelling that are both informative and inspirational. NEIGHBORHOOD ADVISORY TASK FORCE: The re -imagination of this business unit begins with forming a first -ever destination -wide neighborhood advisory task force, bringing together one representative from each of the ten neighborhoods. This approach lends itself to a greater ability and mobility to craft an overarching strategy for the neighborhoods vs a tactic -driven model. The task force's mission will immerse the Newport Beach brand across all neighborhoods, leverage the distinct individuality of each neighborhood, craft compelling marketing by leveraging unique stories and propel activations to bring customers through the doors of small businesses. TECHNOLOGY -DRIVEN WEB CONTENT: This fiscal year, Visit Newport Beach's website is slated for a re -design and a key component is bringing Newport Beach neighborhoods to life via web content. The team will take a visual -first approach to educating visitors on Newport Beach unique landscape, utilizing cutting -edge interactive maps and parallax technology to showcase topographical information in a visual way. The team will create bespoke microsites for each of the ten neighborhoods, with multi -media storytelling across all the tourism small business sectors to generate demand. The team plans to showcase sweeping high -quality and clean hero imagery on every page with bold typography moments and even experiment with sound components. The team will also explore integrating geo-location services with directions to assist visitors while in the destination. NEIGHBORHOOD STORYTELLING: There is an age old saying "show them, don't tell them" - this will be marketing's leading tactic to immerse audiences into each distinctive neighborhood. Across all distribution platforms including web, social media and media relations, the team will craft authentic stories showcasing the best in each neighborhood. Short multi- media content series will serve to educate and inspire visitors on what makes each neighborhood special. Think spotlights on dine/shop/play as well as getting to know the locals, makers, creatives and business owners. The goal of the storytelling segment will to bring the neighborhoods to life leveraging the best in modern film for social media and all other platforms to bring tourism. COMMUNITY CONSULTING: Newport Beach & Company has emerged as a community -marketing leader serving as a branding, marketing and placemaking consultant for individual businesses and groups. This service will continue into this fiscal year, creating opportunities for professional marketing services for the small business community. COMMUNITY EVENTS: Visit Newport Beach teams regularly promote neighborhood events and promotions through its website, social media and media relations channels. CELEBRATE NEWPORT BEACH O CFI-FBRA] NEWPORT BEACH i The Celebrate Newport Beach business unit enables Newport Beach & Company to integrate the Newport Beach brand into in -person events to create cohesive touchpoints across the entire visitor and community experience. Annual marquee signature events are not only an economic driver for the community, but destination differentiators that standout against our regional comp set that give world -class experiences. At the end of fiscal year 2022, large-scale in -person events have returned. From city-wide conventions in Anaheim to Coachella in the desert, there is a public desire to attend events at scale. The Celebrate Newport Beach business unit is ready to meet this moment in the upcoming fiscal year and beyond by crafting marketing, sponsorship and event support. The team will have a focused attention on elevating brand -centric events and leveraging those events for the benefit of the entire Newport Beach community. Celebrate Newport Beach also focuses on establishing strategic partnerships for Newport Beach that will provide sponsorship revenue to some signature events and key marketing initiatives. Current Celebrate Newport Beach -supported events include: • Newport Beach Film Festival • Newport Beach Christmas Boat Parade • NBFF U.K. Honours/Variety 10 Brits to Watch • Hoag Classic • Additional brand -defining events Media support ranges from guidance on marketing tactics to making strategic media placements. Level of support is at the discretion of the Newport Beach & Company Marketing Team. All Newport Beach events have the opportunity to promote on appropriate Newport Beach & Company -owned channels. NEWPORT BEACH CHRISTMAS BOAT PARADE As one of the community's longest and most -renowned events, the Newport Beach Christmas Boat Parade is the city's most cherished tradition. Visitors and residents celebrate the cavalcade of holiday -decorated and lit yachts, electric boats and kayaks every December in Newport Harbor. Going on eight years now, Newport Beach & Company and the Newport Beach Chamber of Commerce, the event organizer, formed a strategic partnership, where Newport Beach & Company oversees all marketing, public relations, sponsorship efforts and consumer enhancements. The team invests significantly in the opening night media event to garner tremendous news coverage, which supports attendance numbers later in the parade week/weekend. DESTINATION MARKET DELIVERY & BUSINESS INTELLIGENCE Newport Beach & Company creates an integrated -marketing campaign to raise awareness and attendance for the Christmas Boat Parade. Newport Beach & Company activates the media buy making strategic advertising placements to both inform locals and entice visitors to attend the event and stay overnight in Newport Beach. Campaigns have included digital, radio, television and print placements. New in 2021, Newport Beach & Company partnered with Zartico—a destination organization software tool. This new research tool enabled us to visually see and distinguish between locals, in -state and out-of-state visitors attending the boat parade NEWPORT using cell phone data. It showed where they went, and how much they spent. And how long they stayed. DESTINATION BRAND DEVELOPMENT & STORYTELLING Newport Beach & Company serves as the primary media resource for the Christmas Boat Parade, dovetailing on the extended holiday season. The media relations team handles press inquiries and pitches international, national, regional and local media outlets for positive news coverage about the event. Newport Beach & Company also hosts a media event on the opening night of the Christmas Boat Parade, which has gain significant traction in the last couple of years. A greater opening night experience includes a pop-up holiday market to enhance the guest experience. The event is further elevated through securing celebrity and community grand marshals make a guest appearance each night of the parade. The Newport Beach & Company Marketing team produces all ads and informational materials including the parade -viewing map. Additionally, the Christmas Boat Parade produces a program, and the Newport Beach & Company Marketing team coordinates the content and design for all marketing elements including advertising creative. The Newport Beach TV camera crew films the parade each year and airs a special program on the Newport Beach government access channel. The video team also creates consumable content for social channels and b-roll footage for media outlets. YEAR-ROUND SIGNATURE EVENT SUPPORT Newport Beach & Company supports additional brand -defining events that attract visitors and benefit the Newport Beach community. Each event calls for different levels of support and the expertise of the Newport Beach & Company marketing team reach the right audience. ADVERTISING (PAID MEDIA) Newport Beach & Company provides marketing guidance for signature events. The team will provide an advertising recommendation based on each event's audience and secures media placements as needed. All Newport Beach events can promote on VisitNewportBeach.com. Because of the strategic structure of Newport Beach & Company, other business units can be leveraged to promote on the relevant social media channels and websites, exposing new audiences to events in the city. DESTINATION STORYTELLING The Newport Beach & Company media relations team supports signature events by pitching media to attend and generate positive media coverage as relevant. The event and Newport Beach teams collaborate to find interesting story angles to pitch to national, regional and local media. Partners can provide content that can be used on appropriate Newport Beach & Company outlets and social channels to engage with the additional Visit Newport Beach audience, both local and potential visitors. Newport Beach & Company also promotes events through social media giveaways to engage followers. VIDEO NEWPORT BEACH N� VI DF0 N E W P O R T BEACH If content is king, video is emperor. Video has always been the domineering medium to tell stories, but over the course of the pandemic, video has owned the lion's share of how brands reach consumers. For the past two years, consumers spent more time on their mobile devices while at home, viewing video entertainment with each other and brands. Breakthrough social platforms like TikTok exploded into the zeitgeist offering video creation tools at the fingertips of every consumer. In response, legacy social platforms rapidly developed video content capabilities to keep pace with the trends - giving anyone and everyone the ability to create and share video content. In fact, more video content gets uploaded in 30 days than what the major U.S. television networks have broadcast in 30 years. What's more,167 million TikTok videos have been watching on the internet every minute and after viewing a video ad on Instagram, 75% of all users take further action; in turn, 72% of those actually buy the product from the video. Viewers also retain 95% of a message when they watch it in a video, compared to 10% when reading it in the text. It's safe to say video is one of the most valued components of marketing today. Newport Beach & Company has stayed ahead of the curve in recognizing the value of video production and has championed video investment and filmmaking. This fiscal year, Newport Beach & Company will continue to take its video production to the next level with its four -prong strategy: PLATFORM -SPECIFIC VIDEO PRODUCTION: Ushering in the new era of video, Newport Beach & Company is re -imagining its video content strategy and dedicating budget toward cutting -edge video production. Video production will fall under two categories and best practices will be tailored to each: Video for TV; Video for social media. Knowing video production is not one -size fits all, Newport Beach & Company recognizes the need to adopt best practices and craft bespoke creative direction, production and post -production to maximize engagement, native on each platform. The team will be ramping up its creative external partners in developing new content to achieve these goals to be a leader in the community, tourism industry and drive visitation to Newport Beach. SOURCES: WORDSTREAM, STATISTA, IMPACT END, INSIVIA SOCIAL MEDIA VIDEO OPTIMIZATION: Newport Beach & Company will be turning the volume up on video production specially crafted for social media. Evergreen short bite videos will be launched several times per week to educate and inspire visitation and showcase local businesses. The team will also leverage what's trending in-app from audio and editing applications to savvy community engagement and more, Newport Beach & Company will keep its finger on the pulse to stay fresh and further build its community. The team will also prepare bespoke video content for campaign launches, announcements, live event coverage and more to further provide more experience for its following. Last, the team will be bringing in creatives, creators, ambassadors and influencers to craft more content and well -round its video social strategy for maximum engagement and brand awareness. BRAND NEW COMMERCIALS FOR BROADCAST AND OTT: In line with global brands, Newport Beach & Company has opted to strategically invest in broadcast and OTT buys with brand-new programmatic commercials going live every quarter in targeted national, fly and feeder markets. Building off the success of the 2022 Oscars° commercial, Newport Beach & Company will continue to penetrate the entertainment vertical and leverage its storied ties to Hollywood. Custom commercials will go live around marquee awards shows, domestically and internationally to maximize brand awareness and conversion. N BTV: Newport Beach & Company will continue to partner with the City of Newport Beach government access television channel to lead operations and programming. PSA's and issue -driven stories are a priority for the City of Newport Beach and Newport Beach & Company will collaborate on providing solutions to communicate pertinent information to its stakeholders. _ � ��y.ti��E�- � f �'• Js--�•. , �:'r `-+4CIe �;�1i�+.. .' «•�q_ �,r ..-�. _ ..�.y, .. - ` - _ r+ .[- �'l�c� _ it .'� yJT � � •f _ __ � _. -. -_ _ � - . Awzz 7j; _ �� m 1. Ll E R N A N C E 30 130 EXECUTIVE COMMITTEE & BOARD OF DIRECTOR RF/V N RF/N /FN�F m AtF w 131 TBID BOARD OF DIRECTORS. 131 MARKETING COMMITTEE 132 NEWPORT BEACH Q. COMPANY TC^nn 134 NEWPORT BEACH & COMPANY A 136 INDUSTRY TERMS 140 REFERENCES 126 FISCAL YEARS 2023 & 2024 DESTINATION BUSINESS PLAN Lt, 27 37 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. Its aesthetic, archetype and architecture are meant for immersion into Newport Beach lifestyle through premium products, home and outdoor goods, apparel and much more. Newport Beach & Company's label is glamorous 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. NEW PORT BE"' H COMPANY T.W XOAST 0.-.W.tT47 NEWPORTBEACNANOCO.0 (IIIIIII,IIUIIII�'IE��~�EE�Nu� 1 1 NEWPORT [ EACR I I I��y I I I I I I I lllll I I 111117 I I I I I I I I.l�l I I 111�`I NEWPORT BEACH H & COMPANY ^�111111��111111111' u VISIT N EWPORT BEACH CALIFORNIA FLOAT 00 'WfITH YE WELCOME TO NE7RT BEACH EXECUTIVE COMMITTEE CHAIRPERSON VICE CHAIRPERSON TREASURER DEBBIE SNAVELY GERARD WIDDER CANDACE BISCONTE VEA Newport Beach, The Resort at Eventis Destination A Marriott Resort & Spa Pelican Hill Services MEMBER AT LARGE CHIEF JON LEWIS Newport Beach Police Department MEMBER AT LARGE HOMER BLUDAU Former City Manager BOARD OF DIRECTORS DAVID BEEK Island Marine Fuel ANDRE BROSE Lido House 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 AMY DEIFT City Experiences by Hornblower MARINA DUTTON Balboa Bay Resort MICHAEL GELFAND Newport Dunes Waterfront Resort & Marina ERIN HENRY Hyatt Regency Newport Beach RUSH HILL NRM Real Estate Advisors WASIM KAZI Hyatt Regency John Wayne Airport, Newport Beach SECRETARY LINDA M. BEIMFOHR City Cruises Anchored by Hornblower MEMBER AT LARGE SHARON WOOD City of Newport Beach Appointee CHIEF JON LEWIS TANYA THOMAS Newport Beach Police Department Fashion Island MARIO MAROVIC GERARD WIDDER Lounge Group Consulting The Resort at Pelican Hill TONY PETROS SHARON WOOD LSA Associates City of Newport Beach Appointee HENRY PYLE Chartwell Real Estate Development/Balboa Fun Zone Company, LLC. STEVE ROSANSKY Newport Beach Chamber of Commerce GREGG SCHWENK Newport Beach Film Festival DEBBIE SNAVELY VEA Newport Beach, A Marriott Resort & Spa JOE STAPLETON Spinnaker Investment Group OPEN Pendry Newport Beach OPEN Renaissance Newport Beach Hotel MARKETING COMMITTEE CHAIRPERSON BEN STINNETT VEA Newport Beach, A Marriott Resort & Spa SHELLEY CALLAHAN Hyatt Regency Newport Beach KELLY CARLSON Balboa Village Merchant Association ANGELA CORTRIGHT Spa Gregorie's COLLEEN D'ALUISIO Balboa Fun Zone Company LLC AMY DEIFT City Experiences by Hornblower HEIDI DRINKWARD VEA Newport Beach, A Marriott Resort & Spa NANCY GARDNER Newport Beach Conservancy STEPHANIE HINKLEY Irvine Company Resort Properties JAN HOLLIS Hyatt Regency John Wayne Airport, Newport Beach JAMES KEAVENY The Resort at Pelican Hill KAMIA KINCHLOW Balboa Bay Resort KATY LENGEL Lido House Hotel BEVERLY MORGAN Sherman Library & Gardens DIANA PARSEL F h' 1 1 d JOHN POPE City of Newport Beach ANNASOPHIA SERVIN John Wayne Airport, Orange County MAUREEN SLOAN HelmsBriscoe FRANCINE SLOSSER Balboa Bay Resort MICHELLE ST. AMOUR Lido Marina Village KIMBERLY STEPHENSON Renaissance Newport Beach Hotel OPEN Pendry Newport Beach as ion s an TOURISM BUSINESS IMPROVEMENT DISTRICT D) BOARD OF DIRECTORS CHAIRPERSON DEBBIE SNAVELY VEA Newport Beach, A Marriott Resort & Spa ANDRE BROSE Lido House CHARLES CHO Newport Beach Marriott Bayview MARINA DUTTON Balboa Bay Resort MICHAEL GELFAND Newport Dunes Waterfront Resort & Marina ERIN HENRY Hyatt Regency Newport Beach WASIM KAZI Hyatt Regency John Wayne Airport, Newport Beach OPEN Pendry Newport Beach OPEN Renaissance Newport Beach Hotel 0�- NEWPORT BEACH & COMPANY >(ECUTIVE -f EAM GARY C. SHERWIN, MICHELLE DONAHUE, DOUG McCLAIN, LILY PEARSON APR, CDME CDME CDME VICE PRESIDENT PRESIDENT & CEO SENIOR VICE PRESIDENT SENIOR VICE PRESIDENT OF FINANCE OF SALES & CHIEF MARKETING OFFICER ADMINISTRATION ROXANNE BRITTAIN EXECUTIVE ASSISTANT TO THE CEO NEWPORT BEACH & COMPANY MARKETING LENIS CHOI SENIOR DIRECTOR OF MARKETING/ BUSINESS INTELLIGENCE BRIANNA GRIMALDI DIRECTOR OF DIGITAL MARKETING HUNTER HOWELL MARKETING COORDINATOR JACKIE INFANTE CREATIVE DIRECTOR ERIN ROSE SENIOR DIRECTOR OF COMMUNICATIONS KAYCEE ROBISON FINANCE COORDINATOR ELIZABETH GAR( ADMINISTRATIVE ASSI: VISIT NEWPORT BEACH, IN GROUP SALE JENNIFER BRANNON DESTINATION SERVICES MANAGER MICHELLE DEVINE, CMM, HMC NATIONAL ACCOUNT DIRECTOR AMANDA KLIEM, CDME, HMCC DIRECTOR OF SALES JANE LOENHORST GROUP MARKETING & COMMUNICAT ENRIQUE PAOLO NATIONAL ACCOUNT DIRECTOR NEWPORT BEACH TV DOMINIC DIMARE NEWPORT BEACH TV PRODUCTION ASSISTANT LUIS HERRERA NEWPORT BEACH TV CAMERA CREW ED OLEN NEWPORT BEACH TV INDEPENDENT CONTRACTOR ACCOLADES NEWPORT BEACH & COMPANY AND VISIT NEWPORT BEACH, INC. 2017 2019 2015 GOLD ADRIAN AWARD - BEST CVB/DMO - NEWPORT BEACH FILM FEST IN WEST INTERNATIONAL 5-STAR U.K. HONOURS BY SMART MEETINGS DIAMOND AWARD HSMAI SMART STARS 2019 AMERICAN ACADEMY OF HOSPITALITY SCIENCES DESTINATION PARTNER 2020 OF THE YEAR IN TOP 30 BEST CITIES IN AMERICA A SECONDARY MARKET BEST CVB/DMO - CONDE NAST TRAVELER HELMSBRISCOE BY SMART MEETINGS SMART STARS 2020 HAPPIEST SEASIDE TOWNS CVB OF THE YEAR - (CORONA DEL MAR) SECONDARY MARKET 2021 COASTAL LIVING CONFERENCEDIRECT TWO - ANVIL AWARDS - MERIT WINNER- NEWPORT BEACH 2016 HOW IN-HOUSE RESTAURANT MONTH PLATINUM - NONPROFIT WEBSITE DESIGN AWARDS PRSA NATIONAL ANVIL AWARDS ADDY AWARDS HOW SILVER - BRANDSCAPE VIDEO SILVER - TELLY AWARD ADDYAWARDS 2018 IN SOCIAL VIDEO STAY & PLAY: TRAVEL #2 AND #6 - BEST & TOURISM BRONZE - 2015 ANNUAL REPORT CALIFORNIA BEACH THE TELLY AWARDS ADDY AWARDS USA TODAY'S 10 BEST TOP 10 BEST WEST COAST BEACHES (LITTLE CORONA DEL MAR AND #1 - 2018 BEST PLACES SILVER -TELLY AWARD CRYSTAL COVE) TO VISIT NEWPORT BEACH USA TODAY LIVABILITY.COM RESTAURANT MONTH: EAT. DRINK. WIN. TOP 10 BEST BOARDWALKS SOCIAL VIDEO USA TODAY THE TELLY AWARDS TOP 25 BEACHES IN THE U.S. (NEWPORT BEACH AND CRYSTAL COVE) TRIPADVISOR SILVER - TELLY AWARD NEWPORT BEACH A SUMMER TRADITION ONLINE COMMERCIALS/ TRAVEL TOURISM THE TELLY AWARDS INDUSTRYTERMS © Co-operative programs and Financial & Insurance opportunities that involve Conference Planners multiple groups or partners E-MAIL SEGMENTATION BRAND PILLARS working together on a common program, campaign or event Separating audiences into different p g Frequent individual traveler The most influential attributes of groups to provide content best the Visit Newport Beach brand CONFERENCEDIRECT suited to their interests FULFILLMENT A/B TESTING I (OR SPLIT TESTING) BRAND PERSONAS Provider of global meeting- -VENT IMPACT CALCULATOR Fulfilling by mail visitor -requested collateral pieces Comparing two versions of a web Personality attributes of the Visit Newport planning solutions; third -party Destination International tool to page or ads to see which one Beach brand meeting planners measure the economic impact of an performs better event to destinations ACADEMY AWARDS BRAND PROMISE Customer -relationship Popularly known as the OSCARS�', Statement made to customers that identifies expectations for all interactions with Newport management system —database Enterprise resource planning, most prestigious and significant Beach &Company of customer data business process management Gulf Cooperation Council, political awards worldwide in the software that allows an organization and economic alliance of six Middle entertainment industry. BRAND VALUE rate is the number to use a system of integrated Eastern countries —Saudi Arabia, Establishinga brand that is memorable, easily Y of clicks thatugh of clicks that your ad receives applications to manage the Kuwait, the United Arab Emirates, Average daily rate for hotel recognizable to the consumer and superior in divided by the number of times business and automate many Qatar, Bahrain, and Oman accommodations quality your ad is shown back office functions related to BUSINESS UNITS technology, services and human A person born in the years following The various segments of Newport Beach & Convention &Visitors Bureau, resources World War II, when there was a Company: Visit Newport Beach, Inc. - Leisure now known as Destination temporary marked increase in the Marketing, Visit Newport Beach, Inc. - Group Marketing Organization (DMO) European -Union, a political union, birth rate pop Sales, Celebrate Newport Beach, Dine p to which the member states of the GENERATION - X Business -to -Business Newport Beach, Enterprise Newport Beach, European Economic Community The generation born between Film Newport Beach, and Newport Beach TV Event -management technology are evolving 1981 -1996, reaching adulthood R�r Business -to -Consumer company, enables increased group business demand around the year 2000 Balboa Village Merchant Association —the through targeted advertising BAFTA merchant association representing Balboa and online meetings requests GENERATION - MILLENNIAL British Academy of Film and Village merchants, which is serviced through for proposals (RFPs) A person reaching young adulthood Television Arts; annual awards held in Newport Beach & Company's economic- around the year 2000 February development business unit, Enterprise Newport Beach Familiarization tour trip, hosting GENERATION - L a travel agent/tour operator, A generation born from 1997 - 2012 Business Improvement District member of the media or meeting planner to increase destination GENERATION - ALPHA DESTINATION ANALYSTS, INC. knowledge and generate interest A generation born from 2010 - 2024 Board of Directors Tourism market research BOUNCE RATE CALTRAVEL California Travel Association, the hospitality and contractor FISCAL YEAR Newport Beach & Company's fiscal Gross Domestic Product, the The percentage of visitors to a travel industry's trade association in California DESTINATION INTERNATIONAL year runs July 1 to June 30 each year monetary value of all the finished particular website who navigate away reflecting the unified voice for California's travel Destination International, goods and services produced within from the site after viewing only one and tourism industry global trade association for a country's borders in a specific page Financial & Insurance time period CDME official destination marketing Conference Planners BRAND USA Certified Destination Management Executive, organizations worldwide GUERRILLA MARKETING Destination marketing organization DMO industry's highest educational achievement DMO/DO Innovative, unconventional for the United States, which began in Frequent individual traveler technique aimed at obtaining 2009 with the Tourism Promotion Act C:UM Destination Marketing Organization/Destination maximum exposure Corona del Mar, neighborhood Organized, formerly known as in Newport Beach Convention & Visitors Bureau INDUSTRY TERMS © MOBILE RESPONSIVE An annroach to web design aimed at crafting sites to provide an optimal HELMSBRISCOE viewing and interaction experience Site -selection agency, John Wayne Airport, Orange across a wide range of devices (from consultants focused on the Country- only desktop computer monitors to meeting planning process; commercial -service airport mobile phones) third -party meeting planners in Orange County HOUSEHOLD INCOME Monetary Policy Committee, a Measure of the combined committee of the Bank of England, incomes of all people sharing which meets for three and a half a particular household or days twelve times a year to decide place of residence the official interest rate in the United Key performance indicator Kingdom Hospitality Performance Network Global; third -party meeting planners LEAD Newport Beach Chamber of Meeting planning request of rooms, event space or goods Commerce, promotes economic IEG and services sent to qualified opportunity to enhance the social and Company that offers partners civic environment of Newport Beach consulting, research and valuation services related LGBT NBTV DIGITAL MEDIA CENTER to event marketing, sports Lesbian, Gay Bisexual & Newport Beach & Company's marketing, cause marketing Transgender in-house video production suite and sponsorship and television studio IMEX © NEED PERIODS America's worldwide Referencing a period of time when exhibition for incentive travel, visitor volume is down meetings & events NEWPORT BEACH INTEGRATED MARKETING Merchant Associations, NEIGHBORHOODS Utilizing both modern examples include Balboa Island Balboa Island, Balboa Peninsula, and traditional marketing Marketing, Inc., and Balboa Balboa Village, Cannery/Lido Marina strategies, Village Merchants Association Village, Corona del Mar (CDM), to optimize the MICE Fashion Island/Newport Center, communication Meetings, Incentives, Airport District, Mariner's Mile/ of a consistent message Conventions Westcliff, Upper Newport Bay, Newport Coast/Crystal Cove & Exhibitions U.S. Travel Association's premier travel -industry (Destination Marketing marketplace Association International's (DMAI) meeting -industry database OCBJ Orange County Business Journal Orange County Visitors Association, provides visitor advocacy, communications and brand -marketing support to Orange County partners OTA Online Travel Agency such as Expedia, Travelocity, Orbitz or Ctrip (in China) SITE VISIT (also known as Site Inspection) Tour of property or meeting space to familiarize a potential client Search -engine marketing —Internet marketing that helps improve visibility in search engine results Search -engine optimization - formatting and writing content to perform at its highest level in online searches Over -The -Top is media services offered Smith Travel Research, Inc. —hotel directly to viewers via the Internet, market data & benchmarking bypassing cable, broadcast and reports utilized by Visit Newport satellite Beach and Newport Beach hoteliers 0 Pay -per -click (online ads or promoted videos) REFERRAI List of qualified Newport Beach & Company partners sent to meeting planners or media outlets Request for proposal RevPAR Revenue per available room, performance metric in hotel industry Return on investment TARGET AUDIENCE Particular group of people, identified as the intended recipient of an advertisement or message TBID Tourism Business Improvement District —hotel -room assessment on the participating lodging businesses within city limits of Newport Beach to market Newport Beach as a meetings destination TRANSIENT Individual traveler not traveling for group/meetings business TRAVELTRADE Collective term for tour operators, wholesalers, and travel agents ROOM NIGHT TRADESHOW Statistical unit of occupancy; one hotel Event with exhibitors showcasing room occupied for one night products or services © Transient Occupancy Tax al known as "bed tax" SALES MISSION Selling and showcasing Newport Beach in other markets U.S. TRAVEL ASSOCIATION National, non-profit organization representing all components of the travel industry that generates $2.1 trillion in economic output and supports 15 million American jobs VFR Visiting friends and relatives VISIT CALIFORNIA California Travel & Tourism Commission, organization with mission to develop marketing programs that keep California top -of -mind as a premier travel destination 0 WEBSITE VISITS A visit is defined as a visit to a website where at least one page has been loaded. zl ZARTICO Provider of the world's first destination operating system. It combines art and science to create insights and intelligence which elevate the well-being of global communities DESTINATION BUSINESS PLAN REFERENCES AND SOURCES CIC RESEARCH CITY OF NEWPORT BEACH CONVENTION INDUSTRY COUNCIL DEAN RUNYAN ASSOCIATES DESTINATION ANALYSTS, INC. DKSA FORWARD KEYS JOHN WAYNE AIRPORT, ORANGE COUNTY KANTAR GROUP NATIONAL TRAVEL & TOURISM OFFICE OFFICE FOR NATIONAL STATISTICS (ONS) OFFICE OF TRAVEL & TOURISM INDUSTRIES OXFORD ECONOMICS PKF STATE OF CALIFORNIA STR, INC. (SMITH TRAVEL RESEARCH) SUCCESSFUL MEETINGS TNS GLOBAL TOURISM ECONOMICS TRIPSAVVY US DEPARTMENT OF COMMERCE US TRAVEL ASSOCIATION VISIT CALIFORNIA WORLD TRAVEL & TOURISM COUNCIL (WTTC) YOUGOV ZARTICO 140 FISCAL YEARS 2023 & 2024 DESTINATION BUSINESS PLAN 12-74 FISCAL YEARS 2023 & 2024 NEWPORT BEACH & COMPANY DESTINATION BUSINESS PLAN ® �\wr` \\], THE VISIT NEWPORT \ `�7 NEWPORT BENCH � s ` � B3 .ACI a com NY cnu 10111n ©2022 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 12- 75 ATTACHMENT B VISIT NEWPORT BEACH CYLWORNIG VISIT NEWPORT BEACH, INC. TOURISM -OCCUPANCY TAX (TOT) LEISURE MARKETING FISCAL -YEAR 2023 & FISCAL -YEAR 2024 BUDGETS VISIT NEWPORT BEACH, INC. FISCAL -YEAR 2023 FISCAL -YEAR 2024 TOURISM -OCCUPANCY TAX (TOT) BUDGET BUDGET LEISURE MARKETING FY2023 & 2024 BUDGETS 7/1/2022 TO 6/30/2023 7/1/2023 TO 6/30/2024 Revenue 41000 - TOT Income 44000 - Event Hosting Income Total Revenue Other Income 46001 - Interest Income Total Other Income Total Operating Revenue General & Administrative 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 64300 - Depreciation Expense Total Operating Expenses Insurance 63100 - General Liability Insurance 63300 - Board of Directors Insurance Total Insurance Professional Fees 64203 - Recruiting Fees 64207 - Bloggers 64201 - Audit Fees 64202 - Tax Preparation Fees Total Professional Fees Travel Expenses 65100 - Airfare 65200 - Accommodations 65300 - Meals 65400 - Transportation Costs 65405 - Mileage ($0.58/mile 2019) 65500 - Other Travel Costs Total Travel Expenses Total General and Administrative Advertising Expenses 66101 - Advertising - Purchased 66102 - Advertising- Local Events 66104 - Advertising Tracking Media 66121 - Promotional Gift Cards 66123 - Promotional Client Gifts 66202 - Ad Production 66203 - Creative Design/Development 66205 - Photography/Video Production 66212 - Community Sponsorships 67101 - Research 67102 - Christmas Boat Parade Total Advertising Expenses Marketing Expenses Community Relations 67103 - Community Partner Events 67105 - Awards 67107 - Promotional Items $5,793,750.00 $5,844,877.00 $0.00 $0.00 $5,793,750.00 $5,844,877.00 $2,500.00 $2,500.00 $2,523.00 $2,523.00 $5,796,250.00 $5,847,400.00 $300.00 $0.00 $0.00 $0.00 $9,000.00 $120.00 $225.00 $1,050.00 $65,000.00 $3,000.00 $4,800.00 $83,495.00 $1,400.00 $2, 200.00 $3,600.00 $2,000.00 $37,500.00 $6,500.00 $1,500.00 $47,500.00 $5,000.00 $2,500.00 $2,000.00 $1,000.00 $500.00 $500.00 $11,500.00 $1469095.00 $1,860,000.00 $8,000.00 $50,000.00 $2,000.00 $1,500.00 $156,000.00 $85,000.00 $195,000.00 $150,000.00 $149,700.00 $175,000.00 $2,832,200.00 $105,000.00 $5,000.00 $7,000.00 $600.00 $0.00 $0.00 $0.00 $0.00 $300.00 $227.00 $1,059.00 $73,000.00 $5,000.00 $5,200.00 $85,386.00 $1,413.00 $2,220.00 $3,633.00 $2,015.00 $37,838.00 $6,525.00 $2,000.00 $48,378.00 $5,045.00 $2,521.00 $2,018.00 $1,009.00 $505.00 $505.00 $11,603.00 $149,000.00 $920, 574.00 $2, 640.00 $16,500.00 $660.00 $495.00 $51,480.00 $28,050.00 $64,350.00 $49,500.00 $49,401.00 $57,750.00 $1,241,400.00 $93,450.00 $4,450.00 $6,420.00 12-76 rE VISIT NEWPORT 13EAC; H OALrFORNIG VISIT NEWPORT BEACH, INC. TOURISM -OCCUPANCY TAX (TOT) LEISURE MARKETING FISCAL -YEAR 2023 & FISCAL -YEAR 2024 BUDGETS VISIT NEWPORT BEACH, INC. TOURISM -OCCUPANCY TAX (TOT) LEISURE MARKETING FY2023 & 2024 BUDGETS 67108 - Company -Sponsored Events 67109 - Hospitality Training Total Community Relations Marketing Collateral 67309 - Marketing Plan 67311 - Collateral Production Expenses 67312-Collateral Distribution Total Marketing Collateral Digital Marketing 67501 - Social Media 67502 - Website Maintenance 67503 - Online Search Advertising 67504 - Digital Advertising 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 FISCAL -YEAR 2023 BUDGET 7/1/2022 TO 6/30/2023 $0.00 $12,000.00 $129,000.00 $12,500.00 $5,000.00 $10,000.00 $27,500.00 $90, 000.00 $53,820.00 $194,000.00 $10,000.00 $25,000.00 $75,000.00 $28,000.00 $30, 000.00 $505,820.00 $17,600.00 $40, 500.00 $175,000.00 $25,000.00 $10,000.00 $268,100.00 $930,420.00 $250,000.00 $30, 000.00 $100,000.00 $0.00 $30, 000.00 $19,200.00 $5,000.00 $5,600.00 $4, 000.00 $4, 000.00 $6,000.00 $225,000.00 $35, 000.00 $713,800.00 $2, 784, 905.36 $2,784,905.36 $7,407,420.36 $1,611,170.36 FISCAL -YEAR 2024 BUDGET 7/1/2023 TO 6/30/2024 $0.00 $10,680.00 $115,000.00 $10,125.00 $4,000.00 $7,875.00 $22,000.00 $99,000.00 $59,202.00 $213,400.00 $11,000.00 $28,500.00 $0.00 $30,898.00 $33,000.00 $475,000.00 $17, 072.00 $39,228.00 $169,750.00 $24,250.00 $9,700.00 $260,000.00 $872,000.00 $235,112.00 $29,100.00 $97, 000.00 $0.00 $29,100.00 $18,626.00 $4,850.00 $5,432.00 $3,880.00 $3,880.00 $5,820.00 $218,250.00 $33,950.00 $685,000.00 $2,900,000.00 $2,9009000.00 $5,847,400.00 $0.00 $0.00 $0.00 12-77 0 VISIT N EW PO RT BEACH CALIFORNIA VISIT NEWPORT BEACH, INC. LEISURE MARKETING TOURISM -OCCUPANCY TAX (TOT) PERFORMANCE STANDARDS REPORT FISCAL -YEAR 2021-2022 VISIT VISIT NEWPORT BEACH, INC. LEISURE MARKETING (TOT) NEWPORT PERFORMANCE STANDARDS REPORT B L AC IA JULY 1, 2021 to JUNE 30, 2022 CALIFORNIA As Visit Newport Beach, Inc. commenced FY2022, the COVID-19 Delta variant was sweeping across the country and our leisure marketing efforts pivoted once again to ensure our hospitality community, all tourism -related businesses and the City of Newport Beach were successful and economically vibrant given the ever -constant changes in this new post-COVID world. Subsequent variants such as Omicron reared up mid -year causing yet another wrinkle in travel patterns, vacation getaways and tourism travel to Newport Beach. To prepare for these headwinds, Visit Newport Beach, Inc. implemented full-scale, 24/7, 365-days-a-year seasonal leisure -traveler advertising campaigns in closer -in drive markets to counteract the forces driving away business travel; group/meetings and conferences; and almost all international inbound travel to the U.S.. This always -on marketing and advertising was unprecedented and highly successful. Steering most of its marketing dollars into advertising in these drive markets paid off in dividends for our hotels and the City of Newport Beach. Targeting the right customer at the exact time with the right message via the precise media drove over 150,000 leisure hotel room nights so far (and even more coming in via tracking studies) into our hotels at unprecedently high leisure hotel rates. Numerous digital, event, social media, public relations, branding and other marketing initiatives worked in unison with these seasonal leisure marketing campaigns to drive record tax revenue to the City of Newport Beach. As Visit Newport Beach, Inc. crafts marketing efforts for the new fiscal year, finding that right balance of meetings/conferences business, international travel and domestic U.S. travel to Newport Beach will be the focus to ensure a healthy, vibrant and successful mix of tourism revenue to the City of Newport Beach. VISIT NEWPORT BEACIA CALIFORNIA FISCAL -YEAR 2021-2022 VISIT NEWPORT BEACH, INC. LEISURE MARKETING (TOT) PERFORMANCE STANDARDS REPORT JULY 1, 2021 to JUNE 30, 2022 *SPRING LEISURE CAMPAIGN ENDED 6/30/22, SO TRAVEL & TOURISM TO NEWPORT BEACH FROM TEHSE CAMPAIGNS IS STILL OCCURINGS. ADVERTISING EFFECTIVENESS STUDIES WILL BE FIELDED IN EVERY ADVERTISING MARKET IN AUGUST TO MEAURE THE TRUE, TOTAL AND FINAL ECONOMIC IMPACT OF VISIT NEWPORT BEACH'S ADVERTISING CAMPAIGNS. FINAL TOTAL RESULTS WILL BE RELEASED IN SEPTEMBER 2022. 12-80 V> TELLY AWARDS PREMIER AWARD HONORING VIDEO & TELEVISION ACROSS ALL SCREENS FROM 12,000 ENTRIES FROM ALL 50 STATES & 5 CONTINENTS HERMES CREATIVE AWARDS HONORS THE MESSENGERS & CREATORS OF THE INFORMATION REVOLUTION ATivollil Oki 19 VISIT NEWPORT BEACH 94TH OSCARS SILVER WINNER REGIONAL TV: TRAVEL/TOURISM PLATINUM "FLOAT WITH US" SPRING CAMPAIGN ➢ SOCIAL MEDIA VIDEO ➢ ANIMATED DISPLAY ADS STAY & PLAY IN N E W PO RT BEACH SILVER WINNER SOCIAL VIDEO SERIES: TRAVEL/TOURISM GOLD "FLOAT WITH US" SPRING CAMPAIGN ➢ TV COMMERCIAL /AD ➢ DISPLAY ADS u VISIT NLWPORT BEACH CALIFORNIA 202-1-2u22 SEASONAL LEISURE AD CAM PAr I NI.q 2021 SUMMER/FALL CAMPAIGN 12021 CHRISTMAS BOAT PARADE CAMPAIGN 12022 WINTER `APRES SKI' CAMPAIGN 12022 HOAG CLASSIC CAM PAIGN I N EWPORT BEACH TAKES OVER THE OSCARS® 12022 `FLOAT WITH US' SPRING CAMPAIGN 1 2022 `DOLCE DREAMS' SUMMER CAMPAIGN 12-82 SEIZE THE WEEKDAY -41 VISIT / N EWPORT 13EAC: 1 *j - ?, CALIFORNIA - "SEIZE THE WEEKDAY' SUMMER 2021 RECAP JULY - OCTOBER 2021 12-83 OVERVIEW: COVI D-19 IMPACT 9a[)% $tea BaD% $300 7DLD% 6aD�6 $250 5DLD% $200 4DLD% $154 3aD% $1C10 2aD% 1DLD% Surnmer ON 551 Campaign Spill MAy Jun Jul Aug Sep Ott MAY Jun Jul Au$ Sep Oct Jun Jul Drug Stp &k't ID19 2019 20ig 2019 2019 IDJL9 2(120 ID2D 2020 2020 2020 2(120 ZD21L 2021 2DZI 2021 2021 Obtupwq -,dDR 2021 Summer Campaign was first since 2015. The impact of Covid-19 necessitated a change in marketing timing and strategies to adjust for the changes of consumer visitation behavior. 12-84 SUMMER CAMPAIGN OVERVIEW ©SEIZE THE WEEKDAY V I51T NLV1'PORT `' BOOK NOW L3LACH CALIFORNIA 3. (.. • CAMPAIGN DURATION: July 8, 2021 -September 14, 2021 • TARGET MARKETS: Los Angeles, San Diego, San Francisco, Phoenix • MEDIA: Digital • OBJECTIVES: • Encourage midweek visitation and hotel bookings: "Live Everyday Like It's The Weekend" • Measure marketing ROI as well as Summer 2021 Campaign's impact on visitation and traveling spend within Newport Beach • TARGET AUDIENCE: 3 PERSONA FOCUS • Beach Goer • Culinary • Buzzbound • KEY PERFORMANCE INDICATORS (KPIs): • Impressions • Ad interactions - Click -Through Rate (CTR), Video Completion Rate (VCR), Cost Per Click (CPC) • Web engagement • Survey results on Summer marketing & media effectiveness 12-85 TARGET AUDIENCE PROFILES 1. BEACH GOER • A45-54, married with kids, HHI $115K+ • They prefer beach and beach activities: If there is a beach where they vacation, they are happy —these travelers are not readily motivated by non -beach destinations. 2. BUZZBOUND • A25-54, H H I $115K+ • These travelers only invest in trips and destinations that are buzzed about, on trend and socially brag - worthy. They believe destinations that are popular with a lot of people are usually more fun than lesser - known destinations. 3. CULINARY • A25-54, married with kids, HHI $115K+ • When deciding where to travel, a destinations local food scene is important. This Foodie lives to post pictures of culinary experiences in social media channels and seeks travel experiences to add to their documentation of food experiences. SEIZE THE WEEKDAY 12-86 SUMMER CAMPAIGN KPIs The campaign delivered record setting incremental online visitation and travel spending as well as a high ROI for the season. Success of the campaign can be attributed to multiple factors: • Marketing was timed to follow the vaccinations to P16+ when people were ready to travel • Testing of formats allowed for dynamic changes to keep consumer engagement high MARKETING METRIC RESULTS DESCRIPTION Total Impressions 27.9M 37% of annual goal Households Reached 2.6M Through Summer Campaign VNB Landing Page 1O5K+ Sessions 141 K+ Pageviews VNB Ad seen/heard 39% By Travelers $ Spend/ Aware $0.07 In target markets Household Incremental HH Trips 38,800 Newport Beach Campaigns Average 1.2% Incremental Visitation 1.5% Incremental Revenue $17.7M Return on Investment $92 Value Add Received $16K Additional media at no cost The Summer 2021 Campaign for Newport Beach generated a market reach of 2.6M Households at a cost of just $0.07 per household and generated an ROI of $92 for every $1 spent on advertising - close to the historical average for Newport Beach campaigns. The campaign was efficient at a cost of $0.07 per aware household. 12-87 BEACH GOER: FACE BOOK/INSTAGRAM PERFORMANCE Videos ads had a 9% lead over the best performing image wllY.perte� ... � VI1e Wwpwr e.aM ... 8vR W W w�rc Oe.rNrq� Wee. grf.IV aM xu err n. x�ncp: Nawa iwMrtry rcry N N..9ertlydi �. rq ar ,bnyr �ape��ye �y rru y. yn•. wvekdq rp�er in Ncn(•vrr Beech .�j �njp1 ou wMOwlwfwA M.u11ex rN GrPr. S•r• U.ri • Nall 0$(rK'wKRMEPew.CON •w o.rlMnn. LE\NI HOPE Lr lsmyd Day LNe"11" 8�O1[NOVf NNI Ii^sV^rt eeecn ... Sii �s W and so are dti aaN�pe N..e. •nkd.e r.c.y •n Nenpwt 8..ch .M ny y W —1d•r.rgNned beach., fOr k— $ex Ml ,, N.11 Newport B.rh ... Yid! ljgPwt Omch 9Ef5 i4-6 ware Ore xeetnys Have. weekday may In Newport Owh 4n0 a "Ow wtlen yuN ]cite The weekday, yufll w1ay the wwd..n.wn.d be.ca.e for 1. 8- Ud amanwp beadtea Of Newpwl Be hand amix" eS gs w'/Our ray NSRrfv.tleTP mm VISfTNEWPORTBF CON U. D-Y an Lp.nIm eam Now &wy ay Llk. Wi.Th. BOOK lIOW ti Awt T*Who Y WWk Fr )wlwiww� Wwkl kW-V., B.-h rib 0.6-1. 0.84% 0.77% 0a73% 0a71% 0.48% CL.. rn RauEn We cucc wO "T. arc.•ineoucn-It CLIc IflWUGH WE cucc.n.vuenenre CULINARY - FACE BOOK/INSTAGRAM PERFORMANCE Videos ads had a 21% lead over the best performing image 0--- - CIrcY.2 peso Xewpon ae,ca r>e ufnfy .Y pu c�rmp..nd ..rw w .orM.ron.un .a.�v. lsm.....wavn.W.r .. M•.. LM earr Dar Lan kY Tlr LEAPNaIORE Yevalu,d 0.88% CLICK HRCUQHR.r 0 'ASK HawW Rated Check in,pleas tte.vport Reach will,anatyaR roux crmvr g. and verve. p, vnpreaarve .ar.nu, Book a v.-*day getaway Cc. V- YIMMNF IICACH ECM u-1-7 a!LR. RY TM BOOK HOW W-h..d 0.73% 0 VI.it H*wport Roach When you seize the weekday, you lI find IncredlWe food In Newpon Beach and IncredlMe savings on your stay Every data a quad Caren fe day to dock and_. HUax NOW food SI Ldo Is4 Ealenes Crystal C 0.69% CLICK, THROUGH RATE 12-89 VISIT NEWPORT BEACH BLOG CONTENT BEACHGOER'S ITINERARY TRENDSETTER ITINERARY BOATING EXPERIENCES �111 r -I r • Blog pages received a combined 3,804 pageviews. • Top Performing Blog Post was "7 of the Best Boating Experiences in Newport Beach" • Our content team developed a series of blogs for each persona to ensure high engagement. MOST INSTAGRAMABLE FOOD - LOVER'S SPOTS ITINERARY `� • -Val VADJUST f��AlLF •'� [� l A SU 12-90 INCREMENTAL ROOM NIGHTS `The Newport Beach Spring Campaign generated more than 197.8k incremental room nights for the entire area. Of those,111.2k were overnight stays in the city of Newport Beach. The Summer Campaign, which ran from early July to mid - September, generated more than 111kincremental room nights from those staying overnight in Newport Beach at a Hotel, Resort, Bed & Breakfast, Condo, Cabin, Cottage, Vacation Rental, Timeshare, Campground or RV Park that would not have occurred otherwise. Extrapolated across the number of rooms/units purchased, this campaign generated approximately 10% of travelers' room demand in Newport Beach during this timeframe. RESPONDENT BASE: OVERNIGHT VISITORS WHO STAYED IN NEWPORT BEACH I N=158 12-91 INTENT TO VISIT NEWPORT BEACH Increased significantly among travelers after seeing the ad (+7 points) —just below the H2R Norm for Lift of +9 points. Intent to Visit Newport Beach 67% 54% 47% 34% 29% LA (Excluding OQ San Diego Phoenix 43% 37% Las Vegas ■% Probably/Definitely Will Visit Pre -Ad ■ % Probably/Definitely Will Visit Post -Ad Q7: Using the scale provided, please indicate how likely you are to visit each of the following destinations in the next 12 months. (5-pt. scale) Q33: Using the scale provided, please indicate how likely you are to visit the Newport Beach area in the next 12 months. (5-pt. scale) 55% Overall RESPONDENT BASE: ALL RESPONDENTS I N=1,200 12-92 13 E3 713tA -NEWPORT BEACH HWSTMAS BOAT PAMDE. HOSTED BY THE NEWPORT BEACH CHAMBER OF COMMERCE CH RISTMAS BOAT PARADE RECAP DECEMBER zu 12-93 CH RISTMAS BOAT PARADE EXECUTIVE RECAP PUBLIC RELATIONS IMPRESSIONS 1 -1006% 1 "T SOCIAL MEDIA IMPRESSIONS 3-8M SOCIAL MEDIA REACH 2.7M VISIT NEWPOR'T BEACH CALIFORNIA ADVERTISING IMPRESSIONS 5AM WEBSITE LANDING PAGE SESSIONS 37,334 WEBSITE LANDING PAGE VIEWS 42,647 12-94 CAMPAIGN TARGETING KEY METRICS: • IMPRESSIONS • AD INTERACTION • WEBSITE ENGAGEMENT CAMPAIGN MARKETS: • SAN DIEGO • LA • ORANGE COUNTY • NATIONAL (PR) AUDIENCE SEGMENTS • CHRISTMAS EVENT ENTHUSIAST • FAMILIES • COUPLES H 12-95 L InT Pn14- oo.-;F;, ..... . BOATS RS SIGN LIP HERE!. BOA WD P F- Chrigit-BoBtParade.mm a LF- c, vktni a QRn otPmradeAcom LOCAL ORANGE COUNTY OLYMPIANs j,tSLE ON THE WAV (&lWPORT BEACH RISTMAS OAT PARADE. J. *RA40 MARSHAL LOCAL ORANGE COUNTY OLYMPIANS DEC. 15-19 6:30PMrNA#`H`, C h ristmasBoatParade.co m WAT IIWDF— -MEN ON THE WAVES! 0 L CALORANG1 COUNTY OLYMPIANS --::- 11ir ® r1,W„�s Iir &-IAs MEDIA EVENT 0 X -WWI HOLIDAY MARKET MARINA PARK DECEMBER 15" 6-BPM XINl4l1 IS�fX-� l�r� iiUAT YAHRl]E. BOAT PAR�IDE. _ ii�IsTMAS ' f/�37" lo ES7'MA5 ��, � BOA PAF S �w•c.r s.�c.— I[STMAS !_. _S [30A PAREIL7E DECEMBER'1"9 , 4 DECEMBER 15-19 M�lf DECEMBER\ DECEMBER 15�19 NIOHTLV/ 1 15-79 NjaNTLY� DECEMBER ' 6:30w NEWPORT hMlt AW��f. 15-19 NIGHTLY HARBOR ADVERTISING EXECUTIVE SUMMARY KPI'S • 5.3M TOTAL IMPRESSIONS • 34K CLICKS • $0.88 COST PER CLICK (CPC) • 0.65% CLICK -THROUGH RATE(CTR) • 30K SOCIAL ENGAGEMENTS KEY TAKEAWAYS • SOCIAL MEDIA DROVE THE MOST LINK CLICKS AND WAS THE MOST COST-EFFICIENT TRAFFIC DRIVER. • OOH WAS THE TOP IMPRESSION DRIVER AND CONTRIBUTED TO 37% OF THE TOTAL IMPRESSIONS • GOOGLE ADS PERFORMED OVER 6X HIGHER THAN BENCHMARK CTR GOAL. Visit Newport Beach Seethe magic of the 113th Newport Beach Christmas Boat Parade 'Jingle on the Waves" for five spectacular nights on Dec 15-191 N 140 decorated 1 OG d•c b"ts LEARN MORE boafs 50 Viewing LocA._ 50 Vimir d• yr �,tlY. CUHf215TMlLS !'Alt(11]E IECEIBER Ysir Nnvport Boesch ago -sire:. See the magic of the 113th Newport Beach Christmas Boat parade 'Jingle on the Waves' for five spectacular nights on Dec 15-191 VI SRN EWPORTEEACH.Co M 100 decorated boats LEARN M DRE SO V- iag Location. -the Ha... 2-98 ADVERTISING SEARCH CAMPAIGN: 12/7 - 12/19 KEY TAKEAWAYS: • BEST PERFORMING KEYWORD (HIGHEST NUMBER OF IMPRESSIONS): "NEWPORT BEACH BOAT PARADE" (13,827 IMP.) • BEST PERFORMING AD COPY: Newport Beach Boat Parade I Enjoy The Magic at Newport I Reserve Your Tickets Today +12 more visitnewportheach. com/newport-holid ay{bo at -pa rade You Are In For A Big Surprise! Come Experience Holiday Magic In Newport Beach! Up To 100 Boats Competing... View assets details SEARCH Christmas Parade 2021 Search Campaign Impressions Clicks Passes Avg. CPC 34,980 5,652 No data $0.1 b Boat Parade Impressions Avg- CPM 27,704 $25.45 Clicks Avg. CPC 4,719 $0.15 CTR Passes 17.03% No data CTR by Display Creative ero.r��r- xrcanxs mo�ic ar,ixs ,villa lVl Llemmn, Clicks By Device Cost $876.89 Light Parade Impressions 7,276 Avg. CPC $0.18 Passes No data 12-99 QL7Roerr VA'- — - CA-LAX57.0001278 2021.12 13 7 21 13 AM CA-LAX63.0001280 2021 12 13 7 35 08 AM CA•LAX60.0001270 2021 12 13 7 35:07 AM _ IF. arR C 7LAX64 - 0001281 2021.12.13 7:3627 AM CA4RX65 - 0001282 2021.12.13 7:3529 AM ADVERTISING KTLA BROADCAST + DIGITAL Broadcast Spot Spot ran in multiple dayparts: AM News, Daytime, Late News, and Weekend News Snipe: On -screen graphic during highly sought segment of the AM news: Weather 12-101 15AAft— Ir ra,Mr NMLWM4 11.0 LILL S IL-.. LA An&ie, CbMAGLI n I NI rraur.rrqf r.Y:#k bcbw .ai! Ed La-d aY:Id her a 4 m- r as I J%;- t rr.req aka IYaa—lfr FrPAbriwQNmndll 7: Rh - I •_ I IC`_S} %NMI aI pue � �m .:pf I+'Li:Miwsa i ADVERTISING KTLA BROADCAST + DIGITAL mul*~ a%d mwdo.A.d*ir■N MryyrwraLr ;;�� I..wlorr wiaati sir � � E�iwar�d• w��I�• `w ' �s Yi/YR Iw i NI Ix�M4 i.. Rxammn ded by r POWerkAW 12-102 CHRISTMANS BOAT PARADE PUBLIC RELATIONS 107 PLACEMENTS 663,256,591 IMPRESSIONS 60 MEDIA ATTENDEES 17 BROADCAST CLIPS 12-103 TOWN&COUNTRY, li Best Chris[ruas To—i� In Put an Your Hul iday Bucket i•is, Newport Beach, CA ,..�,..hr u..�. m>•n t.hn•�ma• Nvi 1 4•'wr ih•n I��u I•�:• r+•x�^x in •i>r it oe, 1^ uo orb u,i to ew, aiau �'.xwm ilai[m for fire .• nfhi.. n.ire .n:r fw •neyrn+wrha•M4 a•�manm wv .riP�vn[e h�ae w�r. uenmknmvn in sf mrmin� faN un io isn,oarl RmERA The 5 Best Holiday Lights Displays in Orange County Neva Para( PUBLIC RELATIONS TOP PLACEMENTS i� l i- i� 13()A f PARADE SF OS' SAIL .h;- Daily Pilot Newport Beach ushers in the holidays with the 113th Newport Christmas Boat Parade The Best U.S. Cities to Visit at Christmas wl... 'IheLn[.a�nearh :...:.I..i..h•uooed4t brypn-nmei� [.a.,ft-rlr�i. In ilM ,i.nnw.iviY..vw,eiW v I1Rh iniwar V.l x 10 kmnLrr 15 to la, f�rrvmr�a*-.the NxbrkM Cmi. rChrixmaarne 141HIM hahm nu fnr av,emlmc"p+rs4'uHx pt le theh .', dASjwt Ct 4a nbw ash, h—.aMlu>akaharc hmi L—wr —Wr 1n33UA00 •wlhol4aaaw.x 91..o�elWgte R11'^nmlY[aprc r^u rhr I.aralr Mint ic��.�l.[i..[Nwrcllr dm+ra.hd h�ii:n iTrntrn t�� IwaAr thr f wuiiyrirma Shen ,oar.1allnamwao&1uii•k•I9W fn Iwfn•ilynth nriixrir �ld+kukL,Y mini. •egw'eWl1•1tli iba wb ObmoI. wlor/ IChriwiwadnvni"rmain the rdiapex LOCALE „M„ 21 Things to Do in Southern G-diromia 'rhie December Lns Angeles HEW PORT BEACH CHRISIHAS BOAT PARADE IS BACK lGary Sherwin *CAM c¢mcur ucwonor oreru x rnuoauv MM o.w'� r.�r.wy.• ww.UU— .z , obc V LOS ANGELES Tl �EVVEZWffNESSNEW-S Y x. d.2A _ FOX SOCIAL MEDIA @VISITNEWPORTBEACH SOCIAL CONTENT mercedes_buttice_ Perfect Night , we are here tonight with the Family! Best place to be ! MERRY CHRISTMAS & HAPPY NEW YEAR ! A visitcalifornia a It's such a fun holiday event that can't be missed in @VisitNewportBeach! QA Iynnnghiem We wished we were at Marina Park for opening night. Thank you for keeping our annual event successful and breathtaking in all aSpec ts.;411111111IF socratescros @wlllybee 123 love this place! 4w 1like Reply 4Dmaureens€oan beautiful opening night celebration to kick things off! well done A iteverydaywithcaitt Amazing I wanna bring the fam this weekend!!! Iaveluvmusicl000 A family tradition for many years* d' 5w Reply . smkiesow7g This is so where I want to be next year at the beach for Christmas 4! HOLIDAY CONTENT IN FEED OPENING NIGHTVIDEO SOCIAL CONVERSATION 12-106 A. ; NEW • WQ REACH -FORTHE 113TH ANNUALmEWPoRT BEACH THE y Lexieke llwim 7 I -1 't 71, 7 i i CHRIS MAS BOAT PARADE DIGITAL ems. -�♦ ,as'" - 12-108 VISIT NEWPORT BEACH WEBSITE ti 5 113TH NE WJK)RT BEACH CHRISTMAS BOAT PARADE AND RING OF LIGHTS f +•- _ f . a � A — NEWPORT BEACH HOLIDAY HQ f +� �f 113TH NEWPORT BEACH CHRISTMAS BOAT PARADE & RING OF LIGHTS c.am u. �csvm o.� �r�v. aAv m �avv wra.,.w,v rs. �•en.w...r.r...n.a w-wn w�ea 0 u, A 1% I 12-109 \Maim CHRISTMAS BOAT PARADE n•�' �o ,y; ,;� RESEARCH I rl -19,- 7 12-110 NgVpor�•� • re v.vo ' • • • • PELICAN HILL GOLF CLUB CRYSTAL COVE STATE MARINE CONSERVATION HOW DID VISITOR SPENDING VARY BY DAY? 12/1512021 12/16/2022 12/27/2021 12'1V2021 Dale 12-112 Source: Affinity 70.0 60.0 50.0 40.0 u 30.0 O 20.0 10.0 0.0 HOTEL OCCUPANCY DURING CHRISTMAS BOAT PARADE WAS 115% HIGHER THAN NON -BOAT PARADE TIME PERIOD 11111111 Sun Mon Tue Wed 12 13 14 15 Thu Fri Sat Sun 16 17 18 19 Dec 111111111111 Mon Tue Wed Thu Fri Sat 20 21 22 23 24 25 Source: STIR Weekly —Week of 12/29/21 02020 02021 12-113 11piI DO NOT VIANT DISTURB.1 N 1 TT PORE 19 .+ DE ACH MODE� *IPSd6rli "FLOAT WITH US" 2022 SPRING CAMPAIGN INCLUDING SPECIAL MEDIA CAMPAIGNS FOR H OAG CLASSIC 94TH ACADEMY AWARDS FEBRUARY - MAY 2022 12-114 VNB/HOAG CLASSIC AD CAMPAIGN I. KNBC-4: LOS ANGELES, ORANGE, VENTURA &SAN BERNADINO COUNTIES • BROADCAST TV AND STREAMING TV '4f • 2 30-SECOND COMMERCIALS AIRED LOS ANGELES 2. KTLA: LOS ANGELES, ORANGE, VENTURA & SAN BERNADINO COUNTIES ��► • BROADCAST TV AND STREAMING TV • 2 30-SECOND COMMERCIALS AIRED 3. VIDEO & NBTV VIDEO SHOOTS • DRONE, 4K CAMERAS SCOURED HOAG CLASSIC FOR THE BEST VIDEO SHOTS FOR A COMMERCIAL, SIZZLE REEL & PR-B-ROLL VIDEO • NBTV SHOT, EDITED & AIRED TV SHOW r I111 II11I I111 I1111 I _ ANGE CO OT L'AllkYlil - _ a•.° i:�a m I T R� �� r, NEWMFZT MO D L3 C:ACfI HE AC H •L �• ti 111 1111 I I!!JJ 11 11111 ,,, , .. u;,�� 12-115 VNB/HOAG CLASSIC AD CAMPAIGN 2 30-SECOND TV COMMERCIALS . • w �- , C'41. * , FCiIA Presented try Fr iendsafAig6earvalley, cw& 2022-02-25xd6.39:° ■ AY WED THU FRI SUN MON �- 48 47 46 52 54 59 �r 40.� r Alk.- 19 24 21 24 27 Sunny Partly Cloudy Chance of Rain _x ...i' .. ...� .. -'min9' in Crease in trammissian5 Mkda While Califomia romnavirus Ca5e5 are rl SW 9:45R 12-117 SPRING LEISURE AD CAMPAIGN 1. KNBC-4: LOS ANGELES, ORANGE, VENTURA & SAN BERNADINO COUNTIES • BROADCAST TV AND STREAMING TV • 2 30-SECOND COMMERCIALS AIRED 2. KTLA: LOS ANGELES, ORANGE, VENTURA & SAN BERNADINO COUNTIES • BROADCAST TV AND STREAMING TV • 2 30-SECOND COMMERCIALS AIRED 3. BILLBOARDS, DIGITAL, PRINT, ADVERTORIAL ADVERTISING • MEDIA MARKETS: LOS ANGELES, SAN FRANCISCO, SAN DIEGO, ORANGE COUNTY & PHOENIX • MARCH 15 - MAY 15, 2020 ............. DO NOT l Ylil r WPO DISTURB A-- HF-AOOH rso-®re MODE .r' '�'•, •:.. ~ t-.eci,4,&b 11111111 inuaii miF ,] C W PORT l3EA H 1:f LOS ANGELES 15 Yr_ro J - ,NEWf Rl= Af: H Oflill II 12-118 VISIT LNAIP0RT BEACH VISIT N EWPORT BEACH F ORN IAA . 12-119 1��111��11111�1111111111��1111111111 VISIT NEWPORT BEACH DEBUTS AT THE OSCARS@ 1. KABC-7: LOS ANGELES, ORANGE, VENTURA & SAN BERNADINO COUNTIES • NEW CUSTOM -CREATED "GOLDEN AGE OF NEWPORT BEACH" OSCARS TV COMMERCIAL • OSCARS TV INTERVIEW WITH GARY SHERWIN JANELLE RILEY, DEPUTY AWARDS EDITOR, VARIETY 2. 42 MEDIA MARKETS NATIONWIDE 3. • NYC, CHICAGO, DALLAS, SAN FRANCISCO, LOS ANGELES, SAN DIEGO AND 36 MORE MEDIA MARKETS PROMO VIDEOS RUNNING MONDAY (3/21) TO SUNDAY (3/27) L abo SPRING LEISURE AD CAMPAIGN ABC PROMO VIDEOS MON DAY (3/21) TO SUN DAY (3/27) I� ON THE RED GARY SHERWIN CARPET PRESIDENT & CEO, VISIT NEWPORT BEACH 0 jp '* ol 0 s I 0 B � /"y'� Y f •- ! !� � _'111f1f �� q ,1 ii i ems... 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