HomeMy WebLinkAbout08 - Tourism Business Improvement District Annual Report and Fiscal Year 2023-24 BudgetQ �EwPpRT
CITY OF
s NEWPORT BEACH
`q44:09 City Council Staff Report
July 25, 2023
Agenda Item No. 8
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: Tourism Business Improvement District Annual Report and Fiscal
Year 2023-24 Budget
ABSTRACT:
Visit Newport Beach, Inc. (VNB), a business unit of Newport Beach & Company, serves
as the administrator for the Newport Beach Tourism Business Improvement District
(NB TBID). VNB has submitted the NB TBID's Fiscal Year (FY) 2023-24 Annual Report
and Budget for the City Council's review and approval.
RECOMMENDATIONS:
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) Authorize a waiver of the timeline provided in Section 3.5 of the Tourism Business
Improvement District Management Agreement;
c) Review and approve the Newport Beach Tourism Business Improvement District's
FY 2023-24 Annual Report; and
d) Review and approve the Newport Beach Tourism Business Improvement District's
FY 2023-24 Budget.
DISCUSSION:
Newport Beach Tourism Business Improvement District (NB TBID)
The NB TBID is a business improvement district formed pursuant to the Property and
Business Improvement District Law of 1994, codified in Streets and Highway Code
Section 36600 et seq., which helps fund marketing and sales promotion efforts for
Newport Beach tourism businesses. It was established by Resolution No. 2009-21 on
April 28, 2009 and is administered by VNB.
The Management District Plan for the renewed TBID (the document that details the
district's boundaries, funding and programs) was approved by the City Council on
January 24, 2014, and was amended by the City Council on July 10, 2018. The TBID's
current, 10-year term will expire on January 31, 2024.
8-1
Tourism Business Improvement District Annual Report and Fiscal Year 2023-24 Budget
July 25, 2023
Page 2
The TBID Management Plan includes nine hotels/resorts, each consisting of 100 hotel
rooms or more, located within Newport Beach:
• Balboa Bay Resort
• Fashion Island Hotel
• Hyatt Regency John Wayne Airport Newport Beach
• Hyatt Regency Newport Beach
• Lido House Hotel
• Newport Beach Marriott Bayview
• Newport Beach Marriott Hotel & Spa
• Newport Dunes Waterfront Resort & Marina
• Renaissance Newport Beach Hotel
The Newport Beach Marriott Hotel & Spa has been renamed and is currently operating
as VEA Newport Beach, A Marriott Resort & Spa. The Fashion Island Hotel was sold and
will be opening toward the end of the calendar year as The Pendry Newport Beach, under
new ownership and management. The Pendry has expressed interest in joining the
NB TBID. That request will be brought forth to the City Council for consideration at a later
date.
VNB, on behalf of the NB TBID association, has prepared the TBID's FY 2023-24 Annual
Report and Budget for the City Council's review and approval (Attachments A and B). The
annual report includes a summary of the TBID's proposed activities for the year. The
report does not contain recommendations to alter the BID boundaries or method and
basis for levying assessments for the fiscal year. However, given the term of the TBID
ends slightly past the halfway mark of FY 2023-24 on January 31, 2024, a portion of the
proposed budget, for February 1, 2024 through June 30, 2024, will be contingent upon
the renewal of the TBID. The TBID Board of Directors met on June 26, 2023, to review
and approve the TBID's FY 2023-24 Annual Report and Budget.
The proposed FY 2023-24 revenue budget of approximately $4,530,373 forecasts a
19% growth year over year (YOY). This projection accounts for continued industry
recovery, as well as the enhanced amenities offered by TBID member hotels.
Expenditures for FY 2023-24 are estimated at $6,194,015, assuming the continuation of
the NB TBID post January 31, 2024. Given that The Pendry has interest in joining the
NB TBID once operational, and if the City Council approves amending the NB TBID's
membership, revenues for the NB TBID would increase. In the meantime, the proposed
FY 2023-24 budget requires the utilization of approximately $1,663,642 of carryover cash
to supplement the projected shortfall.
The annual report also highlights how the TBID's FY 2023-24 marketing plan will continue
to target luxury clients interested in booking at higher tier hotels. VNB will continue to
employ the strategies of tailored branding, messaging, planning integration,
strengthening partnerships, and collecting sales data in order to meet the goal of booking
80,000 room nights, a 6% increase YOY.
8-2
Tourism Business Improvement District Annual Report and Fiscal Year 2023-24 Budget
July 25, 2023
Page 3
Waiver Request
Staff is requesting a waiver of the timeline specified in Section 3.5 of the 2009 TBID
Management Agreement between the City and VNB. The agreement set a May 31 due
date for the TBID annual report; however, the TBID Board of Directors was not able to
meet until June 26, 2023, to review and approve the annual report and budget.
FISCAL IMPACT:
Under the terms of the City and NB TBID's agreement, the TBID assesses its member
hotels 3% of gross short-term (less than 30-day stays) room rental revenue. The FY 2023-
24 assessment revenue is projected to be approximately $4,530,373, should the NB TBID
be renewed and operate through the end of the fiscal year with the same hotel
membership. Should the TBID be renewed, and The Pendry be approved to join the hotel
membership, the projected revenues should increase. The assessments levied for the
TBID are applied toward the activities described in the NB TBID's Management District
Plan (approved by the City Council on January 28, 2014) and summarized in its annual
report. The City collects the member assessments on behalf of the NB TBID and retains
0.25% of the total assessments collected in order to reimburse the City for collection and
administrative costs associated with the NB TBID.
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 — TBID FY 2023-24 Annual Report
Attachment B —TBID FY 2023-24 Proposed Budget
8-3
ATTACHMENT A
NEWPORT BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT
ANNUAL REPORT FOR FISCAL YEAR 2023-2024
JULY 1, 2023 THROUGH JUNE 30, 2024
ORIGINATION -
On April 28, 2009, Resolution 2009-21 established the Newport Beach Tourism Business Improvement
District (TBID) and approved the TBID's Management District Plan. The Management District Plan was
subsequently amended with the adoptions of Resolution 2012-28, Resolution 2014-7 and Resolution
2018-54. The amendments included a revised assessment from 2% to 3%, a renewal period of ten (10)
years, and the addition of hotels and resorts to its membership. The TBID is a benefit assessment district
proposed to help fund marketing and sales promotion efforts for Newport Beach lodging businesses.
Under an agreement with the City of Newport Beach, Visit Newport Beach, Inc. serves as the TBID's
Owner's Association and oversees its administration and coordinates its sales and marketing activities.
This is the annual report of the Newport Beach TBID for fiscal year 2023-2024 (FY 2023-24) and is filed
with the City Clerk, according to the California Streets and Highways Code Sections 36650.
PURPOSE:
The Newport Beach TBID is responsible for representing and managing conference, meeting, and group
sales efforts in partnership with the eight TBID lodging businesses. These services are designed to
benefit the eight properties that will be assessed within the City of Newport Beach as well as generating
additional revenue to grow the Newport Beach hotel and tourism industry. The current participating
lodging businesses are as follows:
• VEA Resort Newport Beach (formerly known as the Newport Beach Marriott Resort and Spa)
• Renaissance Newport Beach Hotel
• Hyatt Regency John Wayne Airport Newport Beach
• Newport Beach Marriott Bayview
• Hyatt Regency Newport Beach
• The Balboa Bay Club and Resort
• Newport Beach Dunes Waterfront Resort and Marina
• Lido House Hotel
FY 2023-24 SITUATIONAL ANALYSIS:
After a pandemic that crippled the meetings industry, fiscal year 2021-22 saw great strides in recovery.
Meetings continued to rebound in fiscal year 2022-2023, both in terms of definite room nights, as well
as RFPs (Request for Proposal) received. The number of RFPs is at 98% of pre -pandemic volume.
Although this is an optimistic data trend, VNB needs to further analyze the suitability of the RFPs for the
new hotel amenities and rate expectations.
The ideal group for our hotel portfolio is different than what it was in 2019-2020. The market mix for
group bookings have been reduced in several hotels, leaving more inventory for transient rooms. The
group rates being quoted are 50-200% higher, depending on the property and program details. This is a
result of post pandemic demand, as well as substantial reinvestment in amenities. The member hotels
understandably want higher rated bookings with greater food and beverage contributions, room rentals,
and desirable day patterns. The VNB sales team is aware of ideal group parameters and is pursuing
bookings that are the ideal fit for the hotel members. Some previously routine Newport Beach bookings
no longer fit in the destination and must be replaced with bookings that better meet hotel members'
expectations. The result of this new landscape is a lowered amount of group room night bookings, but
higher hotel revenue in overall group bookings.
COST BASIS -
Annual assessment rates are 3% of gross short term (less than 30 days) room rental revenue on the
participating lodging businesses within the City of Newport Beach. Lodging business stays of longer than
30 consecutive days will not be assessed. Based on the benefit received, stays by airline personnel and
government employees on government business will not be assessed. Additionally, stays at time shares
will not be assessed. The renewal year for the current TBID agreement is 2024.
BUDGETED REVENUE FOR FY 2023-24:
After 10 years of consistent growth in TBID revenue, the COVID-19 pandemic created a serious
economic crisis in the hotel industry that negatively affected TBID revenue in FY 2020-21 and FY 2021-
22. Fortunately, FY 2022-23 TBID revenue through May 31, 2023 has exceeded revenue in FY 2018-19,
the last "normal year." Given this recovery, it will no longer be necessary to draw comparison with pre -
pandemic numbers. The budgeted TBID revenue for FY 2023-24 is $4,530,373.
The proposed budget is based on the following assumptions:
• VEA will have one year under their belt establishing themselves in the marketplace.
• The average rates across all market segments have risen to almost 100%
• Overall economic outlook and hotel member's expectations of industry growth.
FY 2023-24 TBID PROPOSED BUDGET:
Total Revenue
$4,530,373
Total Expenses
$6,194,015
Operating Expenses
$2,946,865
Advertising Expenses
$646,500
Marketing Expenses
$387,850
Trade Show Expenses
$523,400
Sponsorships Expenses
$615,700
8-5
Sales Initiatives Expenses 1
$543,700
Customized Destination Support Expenses
1 $530,000
The shortfall for the proposed FY 2023-24 budget will be supplemented by FY 2022-23 carry over of
$1,663,642.
TBID SALES STAFFING IN FY 2022-23:
The current Visit Newport Beach sales staff is back to pre -pandemic levels and includes:
• Senior Vice President of Sales
• Director of Sales
• National Sales Managers (3)
• Group Marketing and Communications Director
• Destination Service Manager
• Sales Coordinator
FY 2023-24 DIRECT SALES INITIATIVES/GOALS:
OBJECTIVE 1: Grow Group Average Rates in Pursuit of Elevated Bookings
With the sizable reinvestment and elevation of the TBID hotel members, there is an opportunity to
pursue and convert higher end bookings that will successfully increase the average rate by $110.
STRATEGY 1: Content generation, 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 search engine optimization (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.
• Produce compelling, short -form video assets featuring inspirational property and destination
highlights.
STRATEGY 2: Reinforce and expand in -person and virtual tradeshow and industry partner engagements,
expanding awareness and building relationships.
TACTICS:
:.
• Pursue targeted signature tradeshows and in -market industry events, while engaging in luxury
focused shows, including immersive 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 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 sales lead engagement and TBID member support.
TACTICS:
• Execute elevated familiarization tours (FAMs) with curated, branded experiences and high -
touch service from destination professionals and partners.
• Continue highly successful programming 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.
• Create targeted email campaigns, templates and curated support materials for one-to-one
lead communications.
• Support TBID members via assets, collateral and sales efforts for continued collaboration.
OBJECTIVE 2 - Reinforce Partnerships between Visit Newport Beach and Meeting Planners
Reinforce the value of engagement with the Visit Newport Beach sales team through compelling
initiatives that provide successful partnerships.
STRATEGY 1: Position Visit Newport Beach as a valuable resource to meeting planners, from the
beginning to end of the booking experience.
TACTICS:
• Approach new wave of meeting planners with education, thought leadership and partnership.
• Promote differentiation with competing destination management organizations (DMOs) via
accredited and experienced team members, elevated service, etc.
8-7
• 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: Connect with meeting planners in advance to educate, inspire and motivate bookings in
Newport Beach.
TACTICS:
• Redefine digital presence through website redesign, including enhanced user experience,
engaging optimized content, and inspiring video and photography assets.
• 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 members regarding marketing, event and
partnership opportunities.
OBJECTIVE 3 - Understand and Elevate Meeting Planner Guidance 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.
STRATEGY 1: 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 comparable 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 Planner Navigator to qualify leads and planners by viewing the whole picture of
what planners are sourcing on the Cvent Sourcing Network, including market segment, need
dates and event sizes.
• Prospect with Linkedln Navigator to gain broad and detailed perspectives on corporate,
association and third -party accounts.
• Keep database current and pinpoint accurate/relevant contacts.
• Create pipeline/prospects.
• Live alerts, company trends, etc.
• Reach key decision makers.
• Real time and relevant alerts for targeted accounts.
• 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 region -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 by 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.
FY 2023-24 GOALS/PRODUCTION:
For FY 2023-24, the Visit Newport Beach sales team is proposing a definite room night goal of 80,000.
Goals and production numbers from the last few years:
Fiscal Year
Definite Room Night Goal
Actual Definite Room Night Sales
2017-18
83,000
90,318
2018-19
93,000
111,501
2019-20
100,000
75,300 (through March)
2020-21
N/A
11954
2021-22
38,000
49,500
2022-23
75,000
64,500 (projected)
2023-24
80,000
N/A
:•
Despite the industry's recovery from the pandemic, Visit Newport Beach is proposing a conservative
definite room night goal for the following reasons:
• RATE CONSIDERATIONS: With an average rate growth of 100% in FY 2022-23, there are a
limited number of meetings that are the right fit for Newport Beach. VNB has been successful in
finding "replacement businesses" in FY 2022-23 and will continue to find the "right" businesses
for a higher tier hotel portfolio in FY 2023-24.
• SUPPLY CONSIDERATIONS: The largest TBID member hotel reduced its room count by 20%;
therefore, its own room night goal has been reduced 40% from pre -pandemic levels.
• POST -PANDEMIC MEETING TRENDS: Meetings are smaller since the pandemic. According to
industry experts, this trend is due to surging travel and meeting costs.
The TBID Board of Directors has observed the VNB sales team consistently exceed goals; however, the
TBID Board will reconvene in January 2024 to discuss any necessary adjustments due to industry trends.
ASSESSMENT AND BOUNDARIES:
The TBID Agreement was renewed in January 2014 extending the renewal period for ten (10) years.
ESTIMATE OF NON -ALLOCATED FUNDS CARRIED OVER FROM FY 2022-2023:
$1,663,642 — These funds will be used to meet the expected revenue shortfall in FY 2023-24
AMOUNT OF ANY CONTRIBUTIONS OTHER THAN ASSESSMENTS LEVIED IN FY 2022-2023:
8-10
ATTACHMENT B
VISIT
L.,. Visit Newport Beach Inc. Group Sales (TBID)
FY23 to FY24 Budget Comparison
B L AC IA 0
CALIFORNIA
FY2023
FY2024
Budget
Proposed Budget
July 1, 2022 to
July 1, 2023 to
June 30, 2023
June 30, 2024
Variance ($)
Operating Revenue
Revenue
41000 - TOT/TBID Income
3,806,384.00
4,508,373.00
701,989.00
Total Revenue
3,806,384.00
4,508,373.00
701,989.00
Other Income
46002 - Gain/Loss on Assets
46001 - Interest Income
1,500.00
22,000.00
20,500.00
Total Other Income
1,500.00
22,000.00
20,500.00
Total Operating Revenue
3,807,884.00
4,530,373.00
722,489.00
Expenses
Salary and Wages
61010 - Salaries and Wages
1,012,000.00
1,334,000.00
322,000.00
61015 - Bonuses and Commissions
186,000.00
260,000.00
74,000.00
61020 - Auto Allowance
16,700.00
23,280.00
6,580.00
61030 - Payroll Tax Expenses
93,500.00
128,000.00
34,500.00
61040 - Accrued PTO Expense
15,000.00
16,500.00
1,500.00
Total Salary and Wages
1,323,200.00
1,761,780.00
438,580.00
Benefits
61110 - Medical Insurance
95,000.00
141,000.00
46,000.00
61115 - Benefit Administrative Fees
360.00
360.00
-
61120 - Dental Insurance
6,400.00
6,500.00
100.00
61125 - Vision Insurance
1,090.00
1,400.00
310.00
61130 - Life and Disability
16,700.00
21,000.00
4,300.00
61140 - Retirement Plan (401k)
97,500.00
130,000.00
32,500.00
61150 - Flexible Spending Plan
1,580.00
2,600.00
1,020.00
61160 - Employee Engagement Benefit
12,000.00
18,000.00
6,000.00
Total Benefits
230,630.00
320,860.00
90,230.00
General and Administrative Expenses
Operating Expenses
64100 - Office Supplies
12,000.00
18,000.00
6,000.00
64101 - Kitchen Supplies
4,800.00
8,400.00
3,600.00
64110 - Office Equipment Leases
5,700.00
2,900.00
(2,800.00)
64115 - Office Equipment (non-deprec)
5,000.00
12,000.00
7,000.00
64120 - Equipment Repairs & Maintenance
24,480.00
20,000.00
(4,480.00)
64125 - Computer Software (non-deprec)
8,610.00
19,300.00
10,690.00
64130 - Voice and Data - Office
8,700.00
8,400.00
(300.00)
64135 - Telephone - Mobile
12,600.00
14,400.00
1,800.00
64140 - Postage
1,200.00
1,200.00
-
64145 - Shipping Charges
2,750.00
2,500.00
(250.00)
64150 - Bank Fees
100.00
200.00
100.00
64160 - Membership Dues
45,400.00
73,000.00
27,600.00
64165 - Subscriptions
1,200.00
4,200.00
3,000.00
64170 - Team Meetings
16,600.00
24,000.00
7,400.00
64175 - Governance Meeting Expenses
10,000.00
20,000.00
10,000.00
64180 - Education
28,675.00
30,325.00
1,650.00
64190 - Business Licensing and Fees
1,000.00
3,250.00
2,250.00
64300 - Depreciation Expense
57,000.00
76,500.00
19,500.00
64600 - Business Meals/Entertainment
7,500.00
20,500.00
13,000.00
Total Operating Expenses
253,315.00
359,075.00
105,760.00
Office Lease and Expenses
62100 - Office Lease
145,000.00
260,000.00
115,000.00
62110 - Office Repairs and Maintenance
5,650.00
7,400.00
1,750.00
62115 - Office Move Expenses
1,200.00
1,200.00
8-11
VISIT
L.,. Visit Newport Beach Inc. Group Sales (TBID)
FY23 to FY24 Budget Comparison
B L AC IA ja
CALIFORNIA
FY2023
FY2024
Budget
Proposed Budget
July 1, 2022 to
July 1, 2023 to
June 30, 2023
June 30, 2024
Variance ($)
62120 - Offsite Storage
7,000.00
6,000.00
(1,000.00)
Total Office Lease and Expenses
157,650.00
274,600.00
116,950.00
Insurance
63100 - General Liability Insurance
1,400.00
2,100.00
700.00
63200 - Workers Compensation Insurance
3,750.00
4,500.00
750.00
63300 - Board of Directors Insurance
2,200.00
2,200.00
-
Total Insurance
7,350.00
8,800.00
1,450.00
Professional Fees
64203 - Recruiting Fees
1,200.00
-
(1,200.00)
64205 - Payroll Processing Service
4,800.00
4,700.00
(100.00)
64206 - Independent Contractors
16,000.00
29,500.00
13,500.00
67004 - Marketing NBCo Fees
108,000.00
108,000.00
-
64201 - Audit Fees
15,000.00
16,000.00
1,000.00
64202 - Tax Preparation Fees
3,600.00
4,000.00
400.00
64204 - Legal Fees
0.00
20,000.00
20,000.00
Total Professional Fees
148,600.00
182,200.00
33,600.00
Travel Expenses
65100 - Airfare
17,500.00
18,000.00
500.00
65200 - Accommodations
22,500.00
16,000.00
(6,500.00)
65300 - Meals
3,000.00
3,000.00
65400 - Transportation Costs
3,200.00
1,500.00
(1,700.00)
65405 - Mileage ($0.655/mile 2023)
300.00
300.00
65500 - Other Travel Costs
1,000.00
750.00
(250.00)
Total Travel Expenses
47,500.00
39,550.00
(7,950.00)
Total General and Administrative
614,415.00
864,225.00
249,810.00
Advertising Expenses
66101 - Advertising - Purchased
100,000.00
200,000.00
100,000.00
66121 - Promotional Gift Cards
54,000.00
65,000.00
11,000.00
66123 - Promotional Client Gifts
40,000.00
40,000.00
-
66203 - Creative Design/Development
32,000.00
15,000.00
(17,000.00)
66205 - Photography/Video Shoots/Production
0.00
325,000.00
325,000.00
67101 - Research
0.00
1,500.00
1,500.00
Total Advertising Expenses
226,000.00
646,500.00
420,500.00
Marketing Expenses
Community Relations
67104 - Annual Marketing Outlook Event
75,000.00
60,000.00
(15,000.00)
67108 - Company -Sponsored Events
35,000.00
20,000.00
(15,000.00)
Total Community Relations
110,000.00
80,000.00
(30,000.00)
Marketing Collateral
67308 - Annual Report
6,000.00
-
(6,000.00)
67309 - Business Plan
2,500.00
6,250.00
3,750.00
67311 - Collateral Production Expenses
10,000.00
10,000.00
-
Total Marketing Collateral
18,500.00
16,250.00
(2,250.00)
Digital Marketing
67502 - Website Maintenance
16,000.00
17,600.00
1,600.00
67503 - SEO/SEM
41,000.00
42,000.00
1,000.00
67504 - Content Creators/Influencers
0.00
70,000.00
70,000.00
8-12
VISIT
NLVIAPORT
B L AC IA 4)
CALIFORNIA
67508 - Website Redesign Expenses
66211 - CRM Maintenance
Total Digital Marketing
Communications/Public Relations
67605 - Media Opportunities
Total Communications/Public Relations
Total Marketing Expenses
International Marketing Initiatives
67401 - International Brand Activations
67402 - International FAM Tours
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
Total International Marketing Initiatives
Direct Sales Initiatives
Trade Show Expense
66221 - Trade Show Travel Expenses
66222 - Trade Show Registration
66223 - Trade Show Booth Expenses
Total Trade Show Expense
Sponsorships
66231 - Sales Group Sponsorships
66232 - Hosted Industry Events
66233 - Industry Partnerships
66234 - Industry Sponsorships
Total Sponsorships
Sales Initiatives
66207 - Site Inspections
66208 - Client Events
66210 - Conference Services
66209 - Database/Prospecting
Total Sales Initiatives
Total Direct Sales Initiatives
Customized Destination Support
66243 - Hotel Partner Booking Incentives
66247 - Partner Engagement Expenses
66248 - Group Marketing Initiatives
Total Customized Destination Support
Other Expenses
64510 - Moving Expenses
Total Moving Expenses
Total Expenses
Utilization of Carryover Cash (not reserve funds)
Net Income
Visit Newport Beach Inc. Group Sales (TBID)
FY23 to FY24 Budget Comparison
FY2023
FY2024
Budget
Proposed Budget
July 1, 2022 to
July 1, 2023 to
June 30, 2023
June 30, 2024
Variance ($)
100,000.00
10,000.00
(90,000.00)
33,800.00
35,000.00
1,200.00
190,800.00
174,600.00
(16,200.00)
18,000.00 40,000.00
18,000.00 40,000.00
337,300.00 310,850.00
65,000.00
20,000.00
25,000.00
15,000.00
8,000.00
1,000.00
2,500.00
2,500.00
3,000.00
0.00 77.000.00
65,000.00
210,000.00
78,400.00
353,400.00
290,000.00
99,000.00
132,500.00
154,200.00
675,700.00
38,200.00
123,500.00
1,000.00
139,100.00
301,800.00
1,330,900.00
300,000.00
18,000.00
140,000.00
458,000.00
6,000.00
6,000.00
4,526,445.00
718,561.00
0.00
55,000.00
272,000.00
196,400.00
523,400.00
380,000.00
64,000.00
147,500.00
24,200.00
615.700.00
35,200.00
356,500.00
2,000.00
150,000.00
543,700.00
1,682,800.00
350,000.00
18,000.00
162,000.00
530,000.00
6,194,015.00
1,663,642.00
22,000.00
22,000.00
(26,450.00)
65,000.00
20,000.00
25,000.00
15,000.00
8,000.00
1,000.00
2,500.00
2,500.00
3,000.00
77,000.00
(10,000.00)
62,000.00
118,000.00
170,000.00
90,000.00
(35,000.00)
15,000.00
(130,000.00)
(60,000.00)
(3,000.00)
233,000.00
1,000.00
10,900.00
241,900.00
351,900.00
50,000.00
22,000.00
72,000.00
(6,000.00)
(6,000.00)
1,667,570.00
945,081.00
0.00 0.00
* Carryover funds not utilized in FY23 due to greater than anticipated revenue
8-13