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HomeMy WebLinkAbout15 - NB & Company/ Visit Newport Beach Annual ReportTO: 2361ITI I CITY OF NEWPORT BEACH City Council Staff Report July 25, 2017 Agenda Item No. 15 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL Dave Kiff, City Manager - 949-644-3001, dkiff@newportbeachca.gov PREPARED BY: Tara Finnigan, Deputy City Manager, tfinnigan(o)_newportbeachca.gov PHONE: 949-644-3035 TITLE: Newport Beach & Company's 2018 Destination Marketing Plan Supplement, the FY 2017-2018 Visit Newport Beach, Inc. Budget, and the Newport Beach Tourism Business Improvement District Fiscal Year 2017-2018 Annual Report and Budget ABSTRACT: Visit Newport Beach, Inc. (VNB), a business unit of Newport Beach & Company, provides destination marketing services to the City of Newport Beach (City) under an agreement for Tourism Promotion, Branding and Marketing Services (Agreement). 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 2018 Destination Marketing Plan Supplement and the FY 2017-2018 Visit Newport Beach, Inc. budget for the City Council's review. VNB also serves as the administrator for the Newport Beach Tourism Business Improvement District (NBTBID). VNB has submitted the NBTBID's FY 2017-2018 Annual Report and budget for the City Council's review and approval. RECOMMENDATION: a) Determine that the 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 it will not result in a physical change to the environment, directly or indirectly; b) Authorize a waiver of the timelines provided in Section 6 of the Agreement; c) Receive and file Newport Beach & Company's 2018 Destination Marketing Plan Supplement and the Performance Standards Report; d) Review and approve, as presented, VNB's FY 2017-2018 budget; e) Review and approve, as presented, NBTBID's FY 2017-2018 Annual Report; and f) Review and approve, as presented, NBTBID's FY 2017-2018 budget. 15-1 Newport Beach & Company's 2018 Destination Marketing Plan Supplement, the FY 2017-2018 Visit Newport Beach, Inc. Budget, and the Newport Beach Tourism Business Improvement District Fiscal Year 2017-2018 Annual Report and Budget July 25, 2017 Page 2 FUNDING REQUIREMENTS: The current adopted budget includes sufficient funding for this project. 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. The budgeted amount for FY18 is $4,802,043. Under the terms of the separate, City-NBTBID agreement, the NBTBID assesses its eight member hotels 3% of gross short-term (stays less than 30 days) room rental revenue. The assessments levied for the NBTBID are applied toward the activities described in the NBTBID's Management District Plan (approved by the City Council on January 28, 2014) and summarized in its annual report. DISCUSSION: Visit Newport Beach, Inc. (VNB) VNB, a nonprofit organization (under IRS code §501(c)(6)), is the destination marketing organization for Newport Beach. It is a business unit of Newport Beach & Company. Under an Agreement with the City, VNB provides marketing services to the City using transient occupancy tax revenues. The Agreement was entered into on September 27, 2011. It was first amended on January 28, 2014 to extend the term to December 31, 2024, to switch from an annual to biennial budget, to update contact information and to add public benefit funding. The City Council approved a second amendment to the agreement on August 12, 2014 to change the reporting timeline for the Performance Standards, Marketing Goals and Marketing Plan from annual to biennial to correspond with the biennial reporting timeline. The City Council approved the FY 2016-2017 and FY 2017-2018 biennial marketing plan, performance standards report and budget in August 2016. Newport Beach & Company prepared and submitted for Council's review, a 2018 Destination Marketing Plan Supplement (Attachment A) along with a revised FY 2017-2018 VNB budget (Attachment B) and an updated Performance Standards Report (Attachment C). Newport Beach Tourism Business Improvement District (NBTBID) The NBTBID is a business improvement district formed pursuant to the Property and Business Improvement District Law of 1994, codified in Streets and Highways Code Section 36600 et seq., which helps fund marketing and sales promotion efforts for Newport Beach tourism businesses. It was established by Council Resolution 2009 - 21 on April 28, 2009 and is administered by VNB. The Management District Plan for the renewed NBTBID - the document that details the district's boundaries, funding and programs - was approved by the City Council in January 2014. The NBTBID's current, 10 -year term will expire on January 31, 2024. 15-2 Newport Beach & Company's 2018 Destination Marketing Plan Supplement, the FY 2017-2018 Visit Newport Beach, Inc. Budget, and the Newport Beach Tourism Business Improvement District Fiscal Year 2017-2018 Annual Report and Budget July 25, 2017 Page 3 The NBTBID includes eight hotels or resorts, each consisting of 100 hotel rooms or more, located within Newport Beach. They are: the Balboa Bay Resort, the Duke Hotel (formerly the Fairmont Newport Beach), the Hyatt Regency Newport Beach, the Island Hotel Newport Beach, the Newport Beach Marriott Bayview, the Newport Beach Marriott Hotel & Spa, the Newport Dunes Waterfront Resort & Marina, and the Radisson Newport Beach. VNB, on behalf of the NBTBID owners association, has prepared the NBTBID's Fiscal Year 2017 — 2018 Annual Report (Attachment D) and submitted a more detailed FY 18 budget for the NBTBID (Attachment E) for the City Council's review and approval. The annual report includes a summary of the NBTBID's proposed activities and budget for the current fiscal year. The report does not contain recommendations to alter the BID boundaries or the method and basis for levying assessments in this fiscal year. 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 — 2018 Destination Marketing Plan Supplement Attachment B — Visit Newport Beach, Inc. FY 2017-2018 Budget Attachment C — Performance Standards Report Attachment D — NBTBID FY 2017-2018 Annual Report Attachment E — NBTBID FY 2017-2018 Budget 15-3 ATTACHMENT A 2018 SUPPLEMENT N E W P O R T B E A C H DESTINATION MARKETING PLAN .mm.,mmk — umommoffft '. nommmmft n"k Moat s arm ft „i Gaal �, '� "F■ t�`i :�1� {sig ��. a +fT.. ��� � A �� ■ ...- 1 f THERE IS A PLACE WHERE ARTFUL AND PLAYFUL BALANCE ONE ANOTHER BRILLIANTLY. IIon JOURNEY W E L L BEYOND. eVA C H & COMPANY 15-5 .-- i -- 2018 SUPPLEMENT DESTINATION MARKETING PLAN TABLE OF CONTENTS 02 EXECUTIVE SUMMARY 04 NEWPORT BEACH & COMPANY OVERVIEW 08 PLAN OVERVIEW 10 2018 GOALS AUDIENCE PLANS 16 LEISURE TRAVELER 28 MEETING PLANNER 36 LOCAL COMMUNITY 46 ORGANIZATION & BOARD GOVERNANCE 58 EXECUTIVE COMMITTEE & BOARD OF DIRECTORS 59 TBID BOARD OF DIRECTORS 59 MARKETING COMMITTEE 60 NEWPORT BEACH & COMPANY TEAM 15-6 2 Last fiscal year, a record number With such success and historic of visitors balanced brilliantly with achievement, some destination - historic highs in hotel occupancy, marketing organizations would stop EX E C U T I V E revenue and average daily rate there and ride that wave of strong in Newport Beach, California. accomplishments and results. That s u m m a r y Momentous tourism -occupancy is not the mission, vision or mantra tax collections coexisted deliciously of Newport Beach & Company. with a record number of restaurant With its entrepreneurial vision receipts and diners. The largest -ever and industr -le tourism -related sales tax receipts des coincided nicely with a record never rest number of airport arrivals at Jo re s. It Wayne Airport, Orange ges and And, Newport Beac ny's ve ays to be the engine historic, award- esti t at drives onomic v cy, It 0 marketin R suc V* sults forWport famou isit each, B, Calif ia. Incs a g highest 0 ee ' el room 'glut in ' •` N E W T -C'= At Newport Beach & Compa OND expectations. We ettled for the norms; we strive to create something exceptio rt he destination we repres ire to achieve something greatel wit ,% every initiative. ` • 1111111 + .� • AI L Newport Beach & Company constantly driv achieve m e the gam ,to be always a step ahead of our competitors. As we invite our customers to ey d," this year we I n to GO BEYOND as a destination -mar eting orga 'zation. �'► 11 ► Anythin a done before ► The rol aditional destination-marke anization g o y n d ► Our p ► The t al luxury mold ► Exp s Each year, Gro, Sa xceeds howl room -n Is, bringing high-value clients to. Newport Beach. Leis takes traditional tourism -marketing models in ates until something remarkable erRerg4 j tnd„across a business units, Newport Beath & Company ighly effective marketinkcampaigns, brand -defining television programming and award-winning results. • f ~ • �•' • This 2018 Destination Marketing Plan is an u the two-year, 2017-2018 Dat&inotiorJorketing Plan, and it is the mosto-date road map for Newport Beach & Company and -Visit Newport Be -or the coming year as we striv to "Go Beyond” in all of our programmin . We look forward to partnering with you on this "Journey Well Beyond." r • 2018 D N TING P Via its new brand -positioning campaign, Newport Beach & Company invites both consumers and meeting planners alike to "Journey Well Beyond." In the next fiscal year and beyond, Newport Beach & Company will adopt this brand positioning and Mah"pos,iiio,ning with to always -''M Newport Beach & Company Goes Beyond The new "Journey Well Beyond" brand positioning speaks to the aspirational lifestyle of Newport Beach, where luxury and laid back coincide perfectly. Internally, "Journey Well Beyond" takes new meaning. The successes achieved last fiscal year only propel us to strive for more. With greater accomplishments come elevated expectations, and we have .y intention of exceeding them. \. Our JOURNEY has onlyjust begun. The past is notjust the past; it propels us forward. The steps from our past guide us as we continue to make strides in destination marketing. Newport Beach is WELL positioned as an aspirational destination. Though there is something for everyone, our coastal paradise in uniquely positioned to attract the super -affluent market. Across all of our business units, Newport Beach & Company will capitalize on this market, taking extra efforts to strengthen our luxury positioning. A N Y • I "N'E W P Newport Beach Foundation 501(.)3 com—nity Leadership Development jr11L- WPOR EA�CHANDCO.COM 3 15-7 ::.�. �. • � • I 2 8 S T R A T E G I C P L A N S C H E M A T I C ee�• ''• �.:: • • • Newp rt Beath $I C p�t,y is a ctive an • • • !'% :.' focuse comm�i -marketing a ency that is • I • ! • • s p ularl co I ed to tellinIth� jptegra4td I • ° • • t ewpor a And story. By embracing a• • • • • • • O• •/ ENHANCE INCREASE 6 • ° • • r y of neiborh ods, businesses and individ • • / • DRIVE NEW AND/OR CURRENT DEMAND COMMUNITY :ENTREPRENEURSHIP •� ::,`: • •- unique voices I to complementary story, • / • ENGAGEMENT AND INTEGRATION • • ' � • • • • r Newpor*B�ch Cdl''npaiy strengthegs of • AV • • • • its partners, drives ewrevenuetothec' and / • //,,/EVATE DESTINATION/COMMUNITY MARKETING AWARENESS AND CONVERSION RAISECOMMUNITY LEVERAGE •: • • enhances its Overall bra •• INVOLVEMENT NECESSARY ' �.,.: :.:; • r"• , COORDINATE MEASURABLE BUSINESS UNITSTRATEGIES AND PROFILE RESOURCES • •:'.. I • i • • • BRAND• MISE • Newport Beach & Company is a regressive, / • Odynamic and innovative marketin organizirtlon ►• • that brings a results -oriented minds t 0&ng W forward-looking attitude to �hpc ISIm ity it.serves Embracin a learni�rtntere • erivir iirrieric�rohere ideas cen4levelop an be . 1 1 • • Newport Beach & Company aspires to be the national model for outstanding integrated community marketing and brand leadership. As an entrepreneurial leadership organization, Newport Beach & Company is creative, innovative and professional in building destination awareness both locally and nationally which drives business and economic growth. It strives to do for its partners and stakeholders what they cannot do individually. 4 2018 DESTINATION MARKETING PLAN I. r FISIT NEWPORT BEACH CELEBRATE NEWPORT BEACH :. EXECUTEA : • CONTINUE LEISURE MARKETING PROACTIVE BOARD/STAFF • PREPAREAND AGREETOA NEWPORT COMMUNITY- TALENT SEARCH MAXIMIZE OCVA, VISIT CALIFORNIA BEACH CHRISTMAS BOAT PARADE RELATIONS AND SUCCESSION AND BRAND USA MARKETING STRATEGIC PLAN. PROGRAM. PLANNING. OPPORTUNITIES. IMPLEMENT A PARK & RIDE ACCESS ACCELERATE LOCAL ENSURE SELF - PARTICIPATE IN OCVACHINAAND PROGRAM. PUBLIC RELATIONS SUPPORTING MIDDLE EAST LEISURE PR AND TRAVEL .CONTINUE EVENT FINANCIAL SUPPORT ACTIVITIES. BUSINESS UNITS. TRADE PROGRAMS. THROUGH NEW SPONSORSHIPS. • DEVELOP INFLUENTIAL BRAND- DEVELOPA DEVELOPAND SEEK AN EVENT CENTRAL LOCATION TO PREFERRED- IMPLEMENTAN MARKETING CAMPAIGNS. ALLOW HIGHER EXPOSURE. PARTNER EFFECTIVE STAFF DETERMINE AND PRESENT ADDITIONAL DEVELOP ANCILLARY ON-SITE EVENT COMMUNITY : PROFESSIONAL ROI METRICS. : PROGRAM. DEVELOPMENT/ • HEIGHTEN TOP-OF-MINDBRANDTRAINING PROGRAMMING. AWARENESS GLOBALLY. NEWPORT BEACH TV :. LAUNCH NEW E-MAIL: PROGRAM. COMMUNICATIONS PROMOTE NEW LIDO HOUSE HOTEL & DEVELOP NEW REVENUE PROGRAM TO LIDO MARINAVILLAGE DEVELOPMENT. OPPORTUNITIES. STAKEHOLDERS/ GROUP SALES CREATE NEW HOTEL IN -ROOM VIDEO COMMUNITY. CHANNEL. :. IMPLEMENT FORMA GROUP -SALES BUSINESS UNIT. EXPAND T024 -HOUR PROGRAMMING NEWPORTBEACH INCREASE EASTERN SEABOARD WITH NEW CONTENT CREATION. : &COMPANY GROUP SALES. NETWORKING LAUNCH ONLINE LIFESTYLE CHANNEL. WORKSHOPS. EXPAND INNOVATIVE GROUP -SALES DIGITAL -MARKETING EFFORTS. ENTERPRISE NEWPORT BEACH STRENGTHEN TBID INDIVIDUAL HOTEL • STRENGTHEN BOARD CAPABILITIESAND MARKETING EFFORTS. PROGRAMMING FOR NEIGHBORHOOD PARTICIPATE IN CHINAMICE INITIATIVE. DISTRICTS BASED ON INDIVIDUAL STRATEGIC PLANS. DINE NEWPORT BEACH FURTHER INTEGRATE DISTRICT/EVENT • PREPARE AND AGREE TOAREVISED MARKETING ACROSS ALL BUSINESS NBRA STRATEGIC PLAN. UNITS. DETERMINEAND PRESENT ADDITIONAL FILM NEWPORT BEACH ROI METRICS. • INVESTIGATE FILM COMMISSION • DEVELOP AND EXECUTE AN IMPACTFUL FORMATION WITH OTHER ORANGE YEAR-ROUND COUNTY COMMUNITIES. CULINARY -MARKETING STRATEGY. • SEEK POTENTIAL PARTNERSHIP • PROVIDE NEEDED PROFESSIONAL- OPPORTUNITIES WITH STATE OF DEVELOPMENT/ TRAINING PROGRAMS CALIFORNIA. FOR RESTAURANTS. IMPROVED COMMUNITY -WIDE MARKETING EFFECTIVENESS HIGHER GROUP ROOM -NIGHT PRODUCTION AND CLIENT ACROSS ALL BUSINESS UNITS. LOYALTY. STRENGTHENING OF THE NEWPORT BEACH COMMUNITY BRAND. MAXIMIZATION OF SIGNATURE SPECIAL -EVENT PRODUCTION WITH 1 GREATER AND MORE INTEGRATED VISITOR -INDUSTRY MARKETING. IMPROVED ECONOMIC IMPACT AND BRAND ENHANCEMENT. • IMPROVED COST EFFICIENCY ACROSS ALL BUSINESS UNITS. INCREASED BOTTOM LINE REVENUE FOR CITYAND INDIVIDUAL -• BUSINESSES. NEWPORTBEAC HANDC0.00M S 15- Visit Newport Beach, Inc., partners with the tourism and hospitality industry by protecting and nurturing the destination brand and delivers additional spending by leisure and conference visitors, leading to enhanced community economic vitality and quality of life. Visit Newport Beach, Inc., encompasses both leisure marketing, funded by the tourism -occupancy tax (TOT) and group meetings sales, funded by the Tourism uAhUessImiarov trict (TBI D) hotel self-assessment. AV M A11111111111111h M I Created to keep Newport Beach top -of -mind and relevant in a competitive culinary marketplace, Dine Newport Beach showcases and promotes Newport I Beach as a premier dining destination offering innovative cuisine, fresh fare, 0. , diverse experiences and exceptional restaurants. Dine Newport Beach is a unique partnership with the Newport Beach Restaurant Association. Celebrate Newport Beach is designed to give focused attention to marketing brand -centric events and leveraging those events for the benefit of the entire community. Celebrate Newport Beach will establish strategic partnerships for Newport Beach that will traverse the marketing . and media platforms providing sponsorship funds to signature events and key marketing initiatives. One of the primary brand -defining events is a partnership with the Newport Beach - Chamber of Co"ristmaos rot to and on � Newport Beac n A Ad 777. The aim of Newport Beach TV is to become the high-quality online, video s- network and video -content provider for Orange County, featuring local programming that highlights the luxury of the Newport Beach brand in and around the destination. As the official community-markWng organ izatio alboa Village Merchants Association (BVMA) and Balboa Island Marketing, Inc. (BIMI), Newport Beach & Company partners with each organization to focus on their growth and community vitality through marketing efforts, economic development and brand development. !iiA:7E:A:i The purpose of this business unit will be to bring brand -defining, revenue generating and 7W hotel room -night -producing film, commercial and video production to Newport Beach and the participating cities. 201 2018 SUPPLEMENT D E S T I NAT IO N MARKETING PLAN At Newport Beach & Company, we understand the importance of developing a road map to reach and surpass our goals. The 2017-2018 Destination Marketing Plan was bold and innovative, driving the Leisure Marketing and Group Sales teams to accomplish big feats and iconic goals. In order to stay at the forefront the destination -marketing industry, Newport Beach & Company enhanced the second year of the plan with this fiscal -year 2018 supplement. With this supplement to 2017-2018 Destination Marketing Plan, Newport Beach & Company continues its innovative, customer -based strategic plan developed in the two-year Destination Marketing Plan. Newport Beach & Company leveraged all of its business units to accomplish great strides toward reaching the ambitious goals set in the two-year plan. Together Visit Newport Beach, Inc. Leisure Marketing; Visit Newport Beach, Inc. Group Sales; Celebrate Newport Beach; Dine Newport Beach; Enterprise Newport Beach and Newport Beach TV allow the entire organization to continue to break the traditional tourism -marketing mold. .+ 4 ! �' Just as the business units ;, I integrate seamlessly, so do the strategic -planning teams at Newport Beach & Company to develop a holistic destination- Ji marketing plan. Each team is comprised of specialists in their fields, eager to elevate Newport Beach & Company's role as the destination -marketing_ organization of the future. a The 2017-2018 Destination Marketing Plan developed goals, objectives, strategies and tactics around the company's four key audiences: I LEISURETRAVELER I MEETING PLANNER 3 LOCALCOMMUNITY 4 ORGANIZATION/BOARD OF DIRECTORS Z__ rf Ile .fir .! 7771 A f �tI ti W i "• V ° NEWPORTBEAC;fI';N;DCO.COM 2 01 8 GOAL S NEWPORT BEACH & CO WEBSITE Web Visits 176,000 224,000 243,000 e ADVERTISING Total Ad Impressions 5,600,000 5,800,000 5,900,000 �• �� PUBLIC RELATIONS Ili Placements 131 70 75 DINE NEWPORT BEACH WEBSITE Web Visits 172,367 155,000 158,100 ` SOCIAL MEDIA Social Followers 8,483 10,000 12,500 PUBLIC RELATIONS \ Placements N/A 30 30 r \ NEWPORT SOCIAL MEDIA Social Followers 1,666 5,500 9,000 YouTube Channel Views 42,000 80,000 160,000 VISIT NEWPORT BEACH WEBSITE VN B Web Visits 1,055,260 1,134,600 1,191,300;j' SOCIAL MEDIA Social Followers 153,346 156,000 172,000 ADVERTISING Total Ad Impressions 159,586,254 161,290,000 166,120,000 Online Ad Click to Site 303,710 312,000 321,000 Marketing Room Nights 78,100 60,000 61,200 Marketing Campaign/Economic Impact 38,600,000 40,000,000 40,800,000 Media Spend Per Room Night $10 $6 $5 PUBLIC RELATIONS Placements 500 525 550 Weighted PR Placement Score N/A 55 58 Key Media Outlet Placements N/A 110 114 INTERNATIONAL Wholesalers Trained 173 200 205 In -Market Agent Visits 22 25 27 (A)ACTUAL (G) GOAL 10 2018 DESTINATION MARKETING PLAN s` A• ,Sp Yti L. fIf ' Jf1,�1r�✓ r� � . 4V.. 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D 0 (D C E Z c 00 (c, z c. C L 0 0 .0- —d' �Q o 0 r 0 CL " -Z 0CJ .2 0 1 3 1 0 u- Z > c V L m 2 -c E E E o o oc� 0 C 0 3: , z -0 C 0 I CL Ln UJ u (U 00 0 uj WLLI Z: c < LU m z ca 0 4. r= 0 ut C LA rR a !! I -C CL 0 C 0 CL c .0 c 4) 0 CL t c g t4 z cc uj om 06 -7 O C7 Rr LU tA 0 CA W V a w ZLU Q wO LLJ O ~ V N F- Vuj w r ~ H Z Q Z LU O 0 E C L n 00 Ln uj iir O p i LL j o �o V a X m w O+ Ln O LL 0 a m m 01 Ln u z w Y a O O x %o = V w 3; w 0 Z a :n E6 Air j Yh y� IyW � �1 I 4 e understand the ignificance of meeting the Oeeds of now. This year, Visit Newport Beach launched its new brand campaign: Journey Well Beyond. To our consumers, the messaging speaks to the aspirational lifestyle of Newport Beach, 57 3 E X E C U T I 4 y� n y CHAIR PERSON Debbie Snavely Marriott Newport Beach Hotel & Spa cy VICE CHAIRPERSON Homer Bludau Former City Manager B O A R D JOE ADAMS Discovery Cube/Ocean Quest BRION AMENDT Newport Channel Inn CRAIG BATLEY Burr White Realty LINDA M.BEIMFOHR Hornblower Cruises & Events RUTH BENJAMIN Hyatt Regency Newport Beach CANDACE BISCONTE ACCESS Destination Services HOMER BLUDAU Former City Manager TOM DONOVAN The Resort at Pelican Hill SECRETARY Linda M. Beimfohr Hornblower Cruises & Events D I R E C T O R S SAM EL-RABAA Balboa Bay Resort ANDREA FAIRCHILD KOBE, Inc. BRIAN KEYS The Duke Hotel Newport Beach RUSS KLINE American Express DENNIS KUHL Los Angeles Angels of Anaheim JON LEWIS Newport Beach Police Department DAN MATUSIEWICZ City of Newport Beach 58 2018 DESTINATION MARKETING PLAN CAROL MCDERMOTT Entitlement Advisors, LLC RHANDA RICHARDSON Newport Beach Marriott Bayview JEFF PROTZMAN Radisson Hotel Newport Beach GREGG SCHWENK Newport Beach Film Festival DEBBIE SNAVELY Newport Beach Marriott Hotel & Spa ANDYTHEODOROU Newport Dunes Waterfront Resort & Marina TANYA THOMAS Fashion Island JONATHON VOPINEK RD Olson Development JIM WALKER Bungalow Restaurant GERARD WIDDER Island Hotel Newport Beach MAUREEN SLOAN OC California's Golf Coast i -r ♦ s �B' ES3�1jPROVEMENT D I S T -R BID ARD OF DIRECTORS Chairperson j(NERARD WIDDER DEBBI_ 01 -- ��► Island Hotel Newport Beach Newport Beach Marriottlotel & Spa VV `` *- ;tee BRIAN KEYS RUTH BEN M %,,,.v The Duke Hotel Newport Beach Hyatt Regent WR*rt'Beat SAM EL A1�u Balboa Bayiesork r AI JEFF PROT MAN Radisson Hotel Newport Beach f t RHANDA RICHARDSON Newport Beach Marriott Bayview AN DY TH EODOROU Newport Dunes Waterfront Resort & Marina s - TREASURER Candace Bisconte ACCESS Destination Services VICE CHAIRPERSON Homer Bludau Former City Manager B O A R D JOE ADAMS Discovery Cube/Ocean Quest BRION AMENDT Newport Channel Inn CRAIG BATLEY Burr White Realty LINDA M.BEIMFOHR Hornblower Cruises & Events RUTH BENJAMIN Hyatt Regency Newport Beach CANDACE BISCONTE ACCESS Destination Services HOMER BLUDAU Former City Manager TOM DONOVAN The Resort at Pelican Hill SECRETARY Linda M. Beimfohr Hornblower Cruises & Events D I R E C T O R S SAM EL-RABAA Balboa Bay Resort ANDREA FAIRCHILD KOBE, Inc. BRIAN KEYS The Duke Hotel Newport Beach RUSS KLINE American Express DENNIS KUHL Los Angeles Angels of Anaheim JON LEWIS Newport Beach Police Department DAN MATUSIEWICZ City of Newport Beach 58 2018 DESTINATION MARKETING PLAN CAROL MCDERMOTT Entitlement Advisors, LLC RHANDA RICHARDSON Newport Beach Marriott Bayview JEFF PROTZMAN Radisson Hotel Newport Beach GREGG SCHWENK Newport Beach Film Festival DEBBIE SNAVELY Newport Beach Marriott Hotel & Spa ANDYTHEODOROU Newport Dunes Waterfront Resort & Marina TANYA THOMAS Fashion Island JONATHON VOPINEK RD Olson Development JIM WALKER Bungalow Restaurant GERARD WIDDER Island Hotel Newport Beach MAUREEN SLOAN OC California's Golf Coast i -r ♦ s �B' ES3�1jPROVEMENT D I S T -R BID ARD OF DIRECTORS Chairperson j(NERARD WIDDER DEBBI_ 01 -- ��► Island Hotel Newport Beach Newport Beach Marriottlotel & Spa VV `` *- ;tee BRIAN KEYS RUTH BEN M %,,,.v The Duke Hotel Newport Beach Hyatt Regent WR*rt'Beat SAM EL A1�u Balboa Bayiesork r AI JEFF PROT MAN Radisson Hotel Newport Beach f t RHANDA RICHARDSON Newport Beach Marriott Bayview AN DY TH EODOROU Newport Dunes Waterfront Resort & Marina E XECUTIVE TEA M `r '� rJ t F*# �•!�/ Of of i *t f d Gary C. Sherwin, Michelle Donahue, Doug McClain, ey Swair CDME CDME CDME DME President & CEO Senior Vice President Senior Vice President Chie cial O of Group Sales & Chief Marketing Officer N E W P O R T M A R K E T I N G KATY DENNIS Senior Director of Marketing & Strategic Partnerships MARK RUDYK Senior Director of Digital Marketing & New Media JANE DRYDEN Group Marketing & Communications Director BRETT ERSKINE Video & Multimedia Manager BRIANNA GRIMALDI Digital Marketing Manager COLLEEN COSTELLO Marketing Manager JACKIE INFANTE Graphic Design Manager HALY HAIGH Communications Coordinator GORDON SPENCER NBTV Executive Producer KIM THOMPSON Manager of Special Events MICHELLE ST. AMOUR Dine Newport Beach 60 2018 DESTINATION MARKETING PLAN iir ISTRA NEWPORT BEACH TV therine DOMINIC DIMARE ector of Adminis ssistant to the CEO ewport Beach TV Camera Crew is -Carr LUIS .� ssist& t **J Newport Bea Crew KIS 9-� 41 4t : �' RD, a ON RODGERS itor Concierge F P ifl, A N Y iM kA, 1 �'• `r '� rJ F*# �•!�/ Of of i *t f d 15-36 10a % NEWPORT BEACH TOURISM IMPACTS 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 $991.31 TO KEEP THE NEWPORT BEACH ECONOMY CHURNING AT THE SAME LEVELS: IT WOULD COST EVERY NEWPORT BEACH HOUSEHOLD AN ADDITIONAL 136628 IN ADDITIONAL LOCAL SPENDING PER YEAR. da R 1 y '=-a tam 210. s a am Mawr, awr MEL - - - - 62 2018 DESTINATION MARKETING PLAN a r it , ■ems :� . �T r 15-37 i s. I '` w ort`' :,:;::'. SIS ,4e'v ori t — AIC 11 - foreve r,fu in in r i iy `y v 11 & COMPANY RNIA NEWPORT BEACH & COMP*�Y1600 NEWPORT -CENTER DRIVE STE. 12O NEWPORT BEACH, C;A 92660 VISITN EWPORTBE-ACH.COM.• NEWPORTBEAC HAN-D'CO.COM 949.719.6100 800.94.COAST ATTACHMENT B Visit Newport Beach, Inc. Leisure Market L A i✓ 1i FY2018 Proposed Budget FY2017 FY2018 Year Over Year Budget Proposed Budget Budget Variance Operating Revenue Revenue TOT/TBID Income 4,791,512 4,799,043 7,531 Advertising Income - - - Partnership Fees 3,000 3,000 - Co -Op Advertising Income - Total Revenue 4,794,512 4,802,043 7,531 Interest Income - Total Operating Revenue 4,794,512 4,802,043 7,531 Expenses Salary and Wages Salaries and Wages S2,012 58,219 6,207 Payroll Tax Expenses 4,108 4,593 485 Total Salary and Wages S6,120 62,812 6,692 Benefits Retirement Plan (401k) 2,620 2,620 Deferred Annuity 7,420 7,420 Total Benefits 10,040 10,040 General and Administrative Expenses Operating Expenses Operating Expenses Office Supplies - - - Stationary 5,000 5,000 Computer Software (non-deprec) 13,900 7,516 (6,384) Voice and Data - Office 1,080 1,080 Shipping Charges - - - Bank Fees 540 540 Membership Dues 54,996 54,996 Business Licensing and Fees - - - Depreciation Expense 600 600 - Business Meals/Entertainment - TotalOperatingExpenses 71,116 69,732 (1,384) Total Operating Expenses 71,116 69,732 (1,384) Insurance Workers Compensation Insurance - - - Board of Directors Insurance 7,830 7,830 Total Insurance 7,830 7,830 Professional Fees Payroll Processing Service 1,896 1,896 - Independent Contractors - - - Audit Fees 6,500 7,500 1,000 Tax Preparation Fees 1,000 2,500 1,500 Legal Fees Total Professional Fees 9,396 11,896 2,500 Travel Expenses Airfare Total Travel Expenses Total General and Administrative 88,342 89,458 1,116 Advertising Expenses Advertising -Consumer 719,882 718,414 (1,468) Advertising- Local Events 95,000 55,000 (40,000) Advertising Promotions - Media 10,000 - (10,000) Advertising Promotions - Non -Media 30,000 - (30,000) Advertising Consulting Fees - - - Ad Production 100,000 140,000 40,000 Creative Design/Development 120,000 105,000 (15,000) Photography/Video Production 50,000 50,000 Other Contingencies Total Advertising Expenses 1,124,882 1,068,414 (56,468) Marketing Expenses Community Relations Community Partner Events - 25,000 25,000 Community Sponsorships - 12,000 12,000 Research 130,000 100,000 (30,000) Christmas Boat Parade - 95,000 95,000 Awards 2,000 1,854 (146) Promotional Items 5,000 2,500 (2,500) Partner Engagement Expenses 5,000 17,500 12,500 Hospitality Training 15,000 3,000 (12,000) Total Community Relations 157,000 256,854 99,854 Marketing Collateral Inspiration Guide 10,000 10,000 - Maps 35,000 35,000 Annual Report 10,000 - (10,000) Marketing Plan 10,000 (10,000) Partnership Packets 5,000 - (5,000) Collateral Production Expenses 50,000 50,000 - Collateral Distribution 42,000 42,000 Total Marketing Collateral 162,000 137,000 (25,000) 15-39 VISI, eft o Visit Newport Beach, Inc. Leisure Market L i✓ ti FY2018 Proposed Budget FY2017 FY2018 Year Over Year Budget Proposed Budget Budget Variance Digital Marketing Social Media Website Maintenance 70,000 70,000 - Online Search Advertising 120,000 125,000 5,000 Digital Advertising 40,000 37,466 (2,534) Mobile Application 35,000 35,000 Website Redesign Expenses 50,000 50,000 - Digital Lifestyle Channel Production 75,000 75,000 CRM Maintenance 8,000 (8,000) Total Digital Marketing 398,000 392,466 (5,534) Communications/Public Relations Media Services 60,000 52,500 (7,500) Media FAM Tours 45,000 40,206 (4,794) PR/Media Consulting Fees - - - Media Special Programs 95,000 95,000 - Media Relations 10,000 2,580 (7,420) Digital Assets/Media Library 9,000 9,000 Total Communications/Public Relations 219,000 199,286 (19,714) Total Marketing Expenses 936,000 985,606 49,606 International Marketing Initiatives International Brand Awareness Fees 95,340 115,340 20,000 International TTI FAM Tours 30,000 20,000 (10,000) International Promotions 195,000 179,500 (15,500) International Trade Shows - - International Airfare 14,250 10,000 (4,250) International Accommodations 10,000 13,000 3,000 International Meals 3,000 2,500 (500) International Transportation Costs 7,000 2,500 (4,500) International Other Travel Costs 1,000 1,000 - International Business Meals/Entertainment 3,000 1,500 (1,500) International Promotional Items 5,000 (5,000) Total International Marketing Initiatives 363,590 345,340 (18,250) NB&Company Fees NB&Co Fees 2,225,409 2,240,373 14,964 Total NB&Company Fees 2,225,409 2,240,373 14,964 Direct Sales Initiatives Sales Initiatives Site Inspections 59 Total Sales Initiatives 59 Total Direct Sales Initiatives - - 59 Total Expenses 4,794,343 4,802,043 7,700 Net Income 169 (169) 15-40 Performance Standards Report ATTACHMENT C Visit New—port Beach- Ce-"Esure Marketing &MM 11 •. % of •. WEBSITE VNB Web Visits 1,134,600 1,324,760 117% SOCIAL MEDIA Social Post Reach 4,485,000 5,117,005 114% ADVERTISTING Total Ad Impressions 161,290,000 165,872,333 103% Marketing Room Nights Generated 60,000 98,100 164% PR Local/National Media Placements 525 541 103% Media Impressions 2,200,000,000 2,174,590,921 99% INTERNATIONAL Wholesalers/Travel Agents Trained 200 470 235% 15-41a ATTACHMENT C Visit Newport :'. • • • -902 ll L=M •, ' of •, WEBSITE VNB Web Visits 1,134,600 1,324,760 117% SOCIAL MEDIA Social Post Reach 4,485,000 5,117,005 114% ADVERTISTING Total Ad Impressions 161,290,000 165,872,333 103% Marketing Room Nights Generated 60,000 TBD* TBD* PR Local/National Media Placements 525 — 541 103% Media Impressions 2,200,000,000 2,174,590,921 99% INTERNATIONAL Wholesalers/Travel Agents Trained 200 470 235% *Note: Final Results from Marketing Room Nights Generated will be reported on 7/21/2017 v 15-41 ATTACHMENT D NEWPORT BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT FOR FISCAL YEAR 2018 JULY 1sT 2017 THROUGH JUNE 30TH 2018 ORIGINATION: Implemented beginning May 15t, 2009 through an approved ordinance by the City Council, the Newport Beach TBID was amended effective January 29th, 2014. The amendment included a revised assessment from 2% to 3% and a renewal period of ten (10) years. The Newport Beach TBID is a benefit assessment district proposed to help fund marketing and sales promotion efforts for Newport Beach lodging businesses. This is the annual report of the Newport Beach Tourism Business Improvement District (TBID), is for the FY2017-2018 fiscal year, 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: Newport Beach Marriott Resort and Spa The Duke Hotel (formally Fairmont Newport Beach) Radisson Newport Beach Newport Beach Marriott Bayview Hyatt Regency Newport Beach The Balboa Bay Club and Resort Newport Beach Dunes Waterfront Resort and Marina Island Hotel COST BASIS AND EXPECTED REVENUE FOR FY2017-2018: The annual assessment rate is 3% of gross short-term (less than 30 days) room rental revenue on the eight participating lodging businesses within the city limits of Newport Beach. Lodging business stays of longer than 30 consecutive days shall not be assessed. Based on the benefit received, stays by airline personnel and government employees on government business shall not be assessed. Stays at time shares shall not be assessed. The expected revenue for FY2017-2018 is $3.93M. Revenue forecasts are revisited in January of each fiscal year by the TBID Board of Directors to determine if adjustments need to be made. 15-42 ACTIVITIES FOR FY 2017-2018: The strategic initiatives detailed in the Newport Beach & Company FY2016-2017 and FY2017-2018 Destination Marketing Plan, and the 2018 Destination Marketing Plan Supplement, include pursuing high -impact business (longer stays and higher priced), continuing with enhancing exposure to targeted clientele through participation in appointment -based shows, and elevating the effectiveness of relationships with portfolio accounts such as HelmsBriscoe and ConferenceDirect. The further development of digital marketing strategies to generate RFP's and grow group business is prominent in the TBID strategic plan. A summarized breakdown of the TBID draft strategic initiative marketing and advertising budget for FY2017-2018 is as follows: GROUP SALES INITIATIVES Advertising $210,000 Site Inspections 65,000 Client Events 65,000 International 55,000 Database/Lead Development 85,000 Trade Show Expense 430,000 Travel Expenses 31,000 Group Booking Incentives 355,000 Customized Destination support 415,000 Hosted Industry Events 45,000 Industry Partnerships/Sponsorship 130,000 Community Sponsorships 165,000 Special Promotions/Client Gifts 55,000 Other/Reserve 140,000 $2,246,0000 ASSESSMENT AND BOUNDARIES: No changes in the assessment rate or boundaries of the TBID are currently proposed. The TBID was renewed in January 2014 for a 10 -year term. ESTIMATE OF NON -ALLOCATED FUNDS CARRIED OVER FROM FY2015-2016: $0.00 AMOUNT OF ANY CONTRIBUTIONS OTHER THAN ASSESSMENTS LEVIED IN FY2015-2016: $0.00 15-43 Operating Revenue Revenue TOT/TBID Income Total Revenue Total Operating Revenue Expenses Salary and Wages Salaries and Wages Bonuses and Commissions Auto Allowance Payroll Tax Expenses Total Salary and Wages Benefits Medical Insurance Dental Insurance Vision Insurance Life and Disability Retirement Plan (401k) Flexible Spending Plan Employee Engagement Benefit Total Benefits General and Administrative Expenses Operating Expenses Office Supplies Stationary Office Equipment Leases Office Equipment (non-deprec) Equipment Repairs & Maintenance Computer Software (non-deprec) Voice and Data - Office Telephone - Mobile Postage Shipping Charges Bank Fees Membership Dues Subscriptions Team Meetings Education Depreciation Expense Other Operating Expense Business Meals/Entertainment Total Operating Expenses Office Lease and Expenses Office Lease Office Repairs and Maintenance Total Office Lease and Expenses Insurance General Liability Insurance Workers Compensation Insurance Board of Directors Insurance Total Insurance Professional Fees Recruiting Fees Payroll Processing Service Marketing Consultant Fees Legal Fees Audit Fees Tax Preparation Fees Total Professional Fees Travel Expenses Airfare Accommodations Meals Transportation Costs Mileage ($0.535/mile 2017) Other Travel Costs Total Travel Expenses Total General and Administrative Advertising Expenses Advertising - Purchased Visit Newport Beach Inc. Group Sales Budget (TBID) 4,025,947 3,939,513 4,025,947 3,939,513 ATTACHMENT E Variance (86,434) (86,434) 789,206 885,973 (96,767) 199,575 210,479 (10,904) 17,340 18,606 (1,266) 79,384 87,978 (8,594) 1,085,505 1,203,036 (117,531) 69,240 76,909 (7,669) 5,808 6,413 (605) 984 1,101 (117) 6,525 7,328 (803) 58,243 78,054 (19,811) 500 500 - 7,396 8,256 (860) 148,696 178,561 (29,865) 6,000 6,000 3,000 5,000 (2,000) 3,444 3,444 1,200 6,500 (5,300) 6,600 6,600 3,900 9,516 (5,616) 4,500 4,500 9,570 9,570 0 900 900 0 29,496 30,000 (504) 0 17,500 10,000 7,500 10,000 7,500 2,500 31,540 40,040 (8,500) 1,514 - 1,514 9,000 9,000 - 138,164 148,570 (10,406) 97,325 102,663 (5,338) 600 600 97,925 103,263 (5,338) 890 890 5,496 5,490 6 10,440 10,440 16,826 16,820 6 3,096 4,200 (1,104) 60,000 - 60,000 - 10,000 (10,000) 1,875 7,500 (5,625) 500 1,000 (500) 65,471 22,700 42,771 9,000 12,000 (3,000) 14,000 14,000 1,650 1,650 1,650 3,500 (1,850) 550 550 26,850 31,700 (4,850) 345,236 323,053 22,183 15,000 15,000 - 15-43 Visit Newport Beach Inc. Group Sales Budget (TBID) *approved 07/19/17 15-44 ma -' Variance NB&Co Marketing Fees 77,000 77,000 Ad Production - - Creative Design/Development - 65,000 (65,000) Photography/Video Production 2,500 40,000 (37,500) Total Advertising Expenses 94,500 197,000 (102,500) Marketing Expenses Community Relations Community Sponsorships 165,000 165,000 Research 3,586 3,586 Total Community Relations 168,586 168,586 Digital Marketing CRM Maintenance 12,000 12,000 Total Digital Marketing 12,000 12,000 Total Marketing Expenses 180,586 180,586 International Marketing Initiatives International Brand Awareness Fees 32,500 35,000 (2,500) International Sales Missions 12,000 20,000 (8,000) Total International Marketing Initiatives 44,500 S5,000 (10,500) Direct Sales Initiatives Trade Show Expense Trade Show Travel Expenses 105,000 100,000 5,000 Trade Show Registration 290,000 250,000 40,000 Trade Show Booth Expenses 100,000 80,000 20,000 Total Trade Show Expense 495,000 430,000 65,000 Sponsorships Sales Group Enhancement Credit 355,000 355,000 - Hosted Industry Events 25,000 45,000 (20,000) Industry Partnerships 42,000 55,000 (13,000) Industry Sponsorships 80,000 75,000 5,000 Total Sponsorships 502,000 530,000 (28,000) Sales Initiatives Site Inspections 61,000 65,000 (4,000) Client Events 85,000 90,000 (5,000) Conference Services 1,000 1,000 - Database/Prospecting 110,000 85,000 25,000 Total Sales Initiatives 257,000 241,000 16,000 Total Direct Sales Initiatives 1,254,000 1,201,000 42,500 Special Promotions Promotional Gift Cards 31,000 20,000 11,000 Promotional Events 10,000 10,000 - Promotional Client Gifts 35,000 30,000 5,000 Total Special Promotions 76,000 60,000 16,000 Customized Destination Support Trade Shows - Partner Expenses - - - Hotel Partner Booking Incentives 281,817 275,000 6,817 Client Events/Relations - - - Partner Engagement Expenses 15,000 15,727 (727) Group Marketing Initiatives 125,000 125,000 Total Customized Destination Support 421,817 415,727 6,090 Total Expenses 3,650,840 3,813,963 (173,623) Net Income 375,107 125,550 87,189 *approved 07/19/17 15-44