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HomeMy WebLinkAbout11 - Visit Newport Beach, Inc. FY 2021 & FY 2022 Destination Business Plan and Budgets, and FY 2020 Performance Standards ReportQ �EwPpRT CITY OF O � z NEWPORT BEACH <,FORN'P City Council Staff Report July 28, 2020 Agenda Item No. 11 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Grace K. Leung, City Manager - 949-644-3001, gleung@newportbeachca.gov PREPARED BY: Melanie Franceschini, Administrative Analyst mfranceschini@newportbeachca.gov PHONE: 949-644-3028 TITLE: Visit Newport Beach, Inc. FY 2021 & FY 2022 Destination Business Plan and Budgets, and FY 2020 Performance Standards Report ABSTRACT - Visit Newport Beach, Inc. (VNB), a business unit of Newport Beach & Company, provides destination marketing services to the City of Newport Beach (City) under an agreement for Tourism Promotion, Branding and Marketing Services. Under the terms of the agreement, VNB is required to submit certain records to the City Council for its review and/or approval. Newport Beach & Company has submitted the Fiscal Year (FY) 2021 & FY 2022 Destination Business Plan and Budget for the Council's review and VNB's FY 2020 Performance Standards Report for the Council's review and approval. RECOMMENDATION: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Review, receive and file the FY 2021 & FY 2022 Newport Beach & Company Destination Business Plan; c) Receive and file the Visit Newport Beach FY 2020 Performance Standards Report; and d) Review and approve the Visit Newport Beach, Inc. Leisure Marketing (TOT) FY 2021 and FY 2022 Budget. FUNDING REQUIREMENTS: The current adopted budget includes sufficient funding for these services. 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 $1,374,884 in TOT funding in FY 2020-21 and approximately $2,199,814 in TOT funding in FY 2021-22 (Attachment B). Their FY 2020-21 estimate is conservative and lower than the City's estimate of $1,717,294 included in its FY 2020-21 General Fund budget. Visit Newport Beach, Inc. FY 2021 & FY 2022 Destination Business Plan and Budgets, and FY 2020 Performance Standards Report July 28, 2020 Page 2 DISCUSSION: Visit Newport Beach, Inc. (VNB) VNB, a nonprofit organization (under IRS code §501(c)(6)), is the destination marketing organization for Newport Beach. Under an Agreement with the City, VNB provides marketing services to the City and community using transient occupancy tax revenues. The agreement was entered into on September 27, 2011. It was first amended in January 2014 to extend the term to December 31, 2024, switch from an annual to biennial budget, update contact information and add public benefit funding. The City Council approved a second amendment to the agreement in August 2014 to change the reporting timeline for the Performance Standards (Attachment C), Marketing Goals and Marketing Plan (Attachment A) from annual to biennial to correspond with the biennial reporting timeline. The VNB Board of Directors met on May 21, 2020 to approve the Destination Business Plan and Budgets for FY 2021 and FY 2022. They are attached for the Council's review as is VNB's 2020 Performance Standards Report. 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 — FYs 2021 & 2022 Newport Beach & Company Destination Business Plan Attachment B —VNB Leisure Marketing (TOT) FY 2021 & FY 2022 Budgets Attachment C — VNB FY 2020 Performance Standards Report 11-2 ATTACHMENT A NEWPORT BEACH & COMPANY DESTINATION BUSINESS PLAN FISCAL YEARS 2021 & 2022 _ - r --- RECOVER & REIMAGINE 11-3 I. INTRODUCTION PAGE SECTION CONTENTS 1 Impact of Tourism in Newport Beach 2 Table of Contents 3 Executive Summary 4 Business Plan Overview r11 In IF YOU TOOK THE TOURISM INDUSTRY AWAY FROM NEWPORT BEACH: TO KEEP NEWPORT BEACH GOVERNMENT SERVICES FLOWING AT THE SAME LEVELS, IT WOULD COST EACH NEWPORT BEACH HOUSEHOLD AN ADDITIONAL $1,139 IN TAXES PER YEAR TO KEEP THE NEWPORT BEACH ECONOMY CHURNING AT THE SAME LEVELS, IT WOULD COST EACH NEWPORT BEACH HOUSEHOLD AN ADDITIONAL $43,922 IN ADDITIONAL LOCAL SPENDING PER YEAR RECOVER & REIMAGINE. NEWPORT BEACH & COMPANY 2021 & 2022 DESTINATION BUSINESS PLAN I 1 11-4 TABLE OF CONTENTS PAGES 1-6 INTRODUCTION 1 Impact of Tourism in Newport Beach 2 Table of Contents 3 Executive Summary 4-5 Business Plan Overview (Customer -Based Planning Introduction & Company Structure) PAGES 7-25 CUSTOMER -BASED DESTINATION BUSINESS PLANS 7 Leisure Traveler Business Plan • Leisure Traveler Situation Analysis • FY2021 & FY2022 Objectives, Strategies & Tactics • Visit Newport Beach, Inc. (TOT) Tourism Business Unit 15 Meeting Planner Business Plan • Meeting Planner Situation Analysis • FY2021 & FY2022 Objectives, Strategies & Tactics • Visit Newport Beach, Inc. (TBID) Group Sales & Marketing Business Unit 20 Local Community Business Plan • Local Community Situation Analysis • FY2021 & FY2022 Objectives, Strategies & Tactics • Celebrate Newport Beach Business Unit • Dine Newport Beach Business Unit • Enterprise Newport Beach Business Unit • Video Newport Beach Business Unit PAGES 26-33 GOVERNANCE 25 FY2021 & FY2022 Goals 27 FY2021 & FY2022 Budgets 28 Newport Beach & Company/Visit Newport Beach, Inc. Executive Committee 29 Newport Beach & Company/Visit Newport Beach, Inc. Board of Directors 30 Visit Newport Beach, Inc. TBID Board of Directors 31 Newport Beach & Company Marketing Committee 32-33 Newport Beach & Company Staff © 2020. NEWPORT BEACH & COMPANY 1600 NEWPORT CENTER DRIVE, SUITE 120 NEWPORT BEACH, CA 92660 800 -94 -COAST NEWPORT BEACH & COMPANY 2021 & 2022 DESTINATION BUSINESS PLAN 1 2 11-5 EXECUTIVE SUMMARY Ask anyone in Newport Beach what our city's main draws are, and they'll likely respond with one of four answers: the beach, the harbor, shopping, and restaurants. It's made us the classic definition of the California Good Life. Together, it creates the great elixir for Tourism, the chief economic engine that drives the city's economy to the tune of $1 billion a year. Unfortunately, thanks to impacts brought about by the coronavirus, that engine ran out of gas last year after more than ten years of impressive growth. Due to the COVID-19 Pandemic, beaches were closed, then opened for recreational use but not sunbathing, most shops are shuttered, and restaurants were relegated to offering take-out cuisine. People were actually encouraged not to visit Newport Beach, or any other place, for several months. Spring of 2020 was the tourism industry's George Bailey moment, referring to the main character in the film "It's a Wonderful Life." We discovered what life was like without tourism. Like in the movie, we looked into the void, and in Newport Beach it was pretty devastating. Without visitors the economy suffered extensively, and it will have a significant impact on the city for years to come both in quality of life and city finances. Our beloved restaurants operate on thin profit margins and many will not survive. Retail is right behind restaurants. Hotels, normally filled to near capacity last year, were also suffering, and it will take some time before they see the occupancy levels that we saw just a few months ago. We were at 80 -percent hotel occupancy in February 2020, and by the end of March 2020, we were down to 30 -percent occupancy. It was the biggest drop ever in our city and across the nation. We had only a small handful of major hotel properties open. Short-term lodging was suspended. Even hotels that were open were only averaging single -digit occupancy. It was a huge blow, and it's going to take a while to dig out. There is a silver lining—we are better positioned than most cities to come out of this. We have a regional population base of 20 million people we can draw from and we still have a wonderful destination with great appeal. When we get back from all this, people may not want to get on an airplane anytime soon and that helps us with our drive -market leisure travelers. We were able to do the same thing in the great recession. What is different this time is that COVID-19 is a two-pronged issue involving both public health and the economy. Both are intermingled and sorting it out will be difficult and involve complex logistics for our hospitality community but we are already making progress. A large part of this is the need to emphasize standards of cleanliness. Visitors want to make sure we are trying everything we can to keep everyone safe. Our tourism businesses are developing a unified strategy for recovery, because there is a lot of work we have to do. As we look to these next two fiscal years, we need to ask ourselves what kind of an economy are we going to have and how do we address it as developments change nearly every day. That will have an impact on how fast and what programs we implement. Another factor in our favor is that there is clearly pent-up demand by many visitors to get out of the house and out of the quarantine stay-at-home orders. Clearly, many visitors need a bit of Newport Beach vacation therapy right now! But as a city, the way we come out of this is to have a community -minded spirit—coming together and thinking differently, collaborating and building partnerships. We need to be strong going forward, almost in a patriotic sense to help everyone in town to get back on their feet. This is our city's opportunity to recover and reimagine our tourism industry. Let's take advantage of it. Journey Well, 4f(�A�� Gary C. Sherwin, CDME, APR President & CEO Newport Beach & Company NEWPORT BEACH & COMPANY 2021 & 2022 DESTINATION BUSINESS PLAN 1 3 11-6 DESTINATION BUSINESS PLAN OVERVIEW COMPANY MISSION Newport Beach & Company is a creative and focused community -marketing agency that is singularly committed to telling the integrated Newport Beach brand story. By embracing a variety of neighborhoods, businesses and individual unique voices into a complementary story, Newport Beach & Company strengthens all of its partners, drives new revenue to the city and enhances its overall vibrancy. Working together, we ignite global passion for Newport Beach. COMPANY BRAND PROMISE Newport Beach & Company is a progressive, dynamic and innovative marketing organization that brings a results -oriented mindset along with forward-looking attitude to the community it serves. Embracing a learning -centered environment where ideas can develop and best be used for the benefit of its partners, Newport Beach & Company's team is a passionate steward for the Newport Beach brand. It is resourceful in creating meaningful programs and services and setting the standard for outstanding leadership. COMPANY VISION 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. Together as a Community, we are bold, smart and always go beyond. UNIQUE BUSINESS -UNIT STRUCTURE Newport Beach & Company embraces its role leading the next generation of destination -marketing organizations. Through community integration and profitable initiatives, Newport Beach & Company developed a business -unit structure that expands upon the traditional tourism model. NEWPORT BEACH & COMPANY ORGANIZATIONAL STRUCTURE & BUSINESS -UNIT MODEL Bard n.wp.n Beall d Dn. kl Fa.nd.don SM 6 SO7(ei3 F.—.iw Can, qty ►iApW.trm;,. Ax W-tfCEO L-d—kip Tears D—kp—t Brand M,�k.e�ng Zram CELE.RATL YIpEp ENTERPRISE NEWPO'IT NEWPORT NplYPgfiT .EACH BEA{M gory 6- NEWPORT BEACH & COMPANY 2021 & 2022 DESTINATION BUSINESS PLAN 1 4 11-7 Founded in January 2013, Newport Beach & Company is a non-profit organization established to serve as the official sales and marketing agency for the City of Newport Beach. The agency brings together all of the marketing entities connected to the Newport Beach brand, and is designed to oversee separate business units that include Visit Newport Beach, Inc., Dine Newport Beach, Celebrate Newport Beach, Enterprise Newport Beach and Newport Beach TV. Each business unit plays a specific, unique role in benefiting the Newport Beach visitor and community. The combined efforts of the business units allow Newport Beach & Company to collectively leverage all of its resources to elevate each individually. CUSTOMER -FOCUSED PLANNING APPROACH For our bi-annual business plans and strategic planning, Newport Beach & Company follows an innovative strategic -planning approach, which focuses long-range planning on our four main audiences and the customers we serve vs. our internal departments. This integrated approach ensures we think of what programs will drive our customers the most vs. thinking about internal departments. The staff is split across all four customer planning teams, which helps to break down silos and unnecessary programs. Newport Beach & Company serves four overarching customer segments: NEWPORT BEACH & COMPANY 2021 & 2022 DESTINATION BUSINESS PLAN 1 5 11-8 II. CUSTOMER -BASED DESTINATION BUSINESS PLANS PAGE SECTION CONTENTS 7 Leisure Traveler Business Plan • Leisure Traveler Situation Analysis • FY2021 & FY2022 Objectives, Strategies & Tactics • Visit Newport Beach, Inc. (TOT) Tourism Business Unit 15 Meeting Planner Business Plan • Meeting Planner Situation Analysis • FY2021 & FY2022 Objectives, Strategies & Tactics • Visit Newport Beach, Inc. (TBID) Group Sales & Marketing Business Unit 20 Local Community Business Plan • Local Community Situation Analysis • FY2021 & FY2022 Objectives, Strategies & Tactics • Celebrate Newport Beach Business Unit • Dine Newport Beach Business Unit • Enterprise Newport Beach Business Unit • Video Newport Beach Business Unit NEWPORT BEACH & COMPANY RECOVER & REIMAGINE. 2021 & 2022 DESTINATION BUSINESS PLAN 1 6 11-9 LEISURE TRAVELER BUSINESS PLAN SITUATION ANALYSIS Newport Beach & Company, through its business -unit structure, presents this integrated marketing, media relations, digital marketing, brand development, communications and meetings -services business plan to attract leisure visitors and meeting attendees to Newport Beach in the 2021 and 2022 fiscal years. The City of Newport Beach has contracted with Newport Beach & Company to foster a strong tourism environment; to attract visitors with strategic marketing efforts; and to engage them in -market to create a positive visitor experience. By enticing visitors to stay in Newport Beach, the City of Newport Beach generates Transient Occupancy Tax (TOT), its third-largest revenue source. This income to the city benefits residents, saving each household an average of $1,139 in additional taxes every year, while maintaining the exceptional infrastructure and city services expected in Newport Beach. To keep the Newport Beach economy churning at the same levels and to keep all of the thousands of local businesses open, each household would have to spend more than $43,922 more locally each year in Newport Beach. Tourism plays a vital role in the Newport Beach economy. Before the COVID-19 Pandemic, visitors spent significant dollars at hotels, restaurants, attractions, retail and local businesses. The 7.3 million annual visitors infused $1.2 billion into Newport Beach's economy, supporting more than 16,000 jobs each year and generating more than $43 million in local taxes making tourism one of the purest and most lucrative forms of economic development. In the wake of the recent pandemic, which shutdown tourism, hospitality and the greater economy, Newport Beach & Company has adopted a new internal mantra, "Recover & Reimagine." Newport Beach & Company plans to think in new, innovative ways to drive economic recovery for our local tourism economy. Our hospitality, tourism, entertainment and culinary industries all screeched to a grinding halt in March 2020 as first international then domestic U.S. travel ground to a halt with stay-at-home, shelter -in-place orders across the globe. Newport Beach hotels went from 80 -percent occupancy in February 2020 to single -digits in March 2020, and unemployment claims leaped to the highest levels since the Great Depression. During the crisis and immediately after, Newport Beach & Company implemented a multi -wave approach with a focus initially on restaurant take-out/carry-out during the pandemic. Next up for Summer 2020 will be a Restaurant Month promotion to spur limited -availability dine -in and take-out options for Newport Beach restaurants. And, a summer leisure drive -market promotion to encourage in-state travel to Newport Beach will launch in Los Angeles, San Francisco, Inland Empire and San Diego. As funding is restored, the team will pivot to a Western U.S. drive -market strategy including the top California feeder markets plus Phoenix and Las Vegas. Media relations and earned media will focus first on top feeder markets and then expand nationally. By leveraging all of the planning team's resources, the cross -departmental team developed this integrated business plan for the leisure traveler customer segment with a management -by -objectives approach where objectives are quantifiable goals, strategies form strategic approaches to reaching the objectives, and tactics are specific projects that support overarching strategies. Through these objectives, strategies and tactics, Newport Beach & Company delivers this plan to recover and re -imagine our hospitality and tourism industry. Working together with our restaurant, hotel and tourism partners, we can create valuable promotions and campaigns to drive incremental leisure travel to Newport Beach. Working together, we will recover and reimagine the tourism industry in Newport Beach. NEWPORT BEACH & COMPANY 2021 & 2022 DESTINATION BUSINESS PLAN 1 7 11-10 LEISURE TRAVELER BUSINESS PLAN OBJECTIVES, STRATEGIES & TACTICS no lrrTl\/r 1 RECONNECT & REBUILD! Reconnect and rebuild integrated marketing campaigns targeting leisure travelers in drive -markets within a 500 -mile radius of Newport Beach who will have a high -propensity to travel to Newport Beach during targeted need periods via three recovery wave periods. STRATEGY: Create fully integrated advertising campaigns targeting our seven new leisure traveler personas who are most likely able and willing to visit Newport Beach over the next two fiscal years. These campaigns will need to stress the destination's inherent brand benefits of vitality, health and wellness as we position Newport Beach as a safe respite from global health and economic conditions. The seven personas will be targeted in the following drive -markets: San Francisco, Los Angeles, San Diego, Phoenix and Inland Empire. STRATEGY: Refocus media relations team on a drive -market earned -media approach. Strongly tie media pitching to the paid -advertising markets to ensure greater return -on -investment. Pitch new content and story ideas positioning Newport Beach as the preferred safe escape and getaway destination. STRATEGY: Rebuild digital -marketing channels for the post COVID-19 world with new digital content such as virtual destination tours, new video storytelling, new blogs and social media content and digital storytelling. STRATEGY: Reconnect the destination experience with future meeting attendees: create compelling video content, maps, online guides, hotel safety guidelines and other attendance -builders via the new Meeting Planner Toolkit in the new meetings website to promote the cleanliness, safety and aspirational Newport Beach lifestyle. STRATEGY: Reposition Newport Beach from mass -marketing to micro -marketing via targeted owned - channel messaging/content, earned -media pitching and paid -media using our new seven personas. LEISURE TRAVELER RECOVERY CAMPAIGNS REE WAVES OF RECOVERY): NEWPORT BEACH & COMPANY 2021 & 2022 DESTINATION BUSINESS PLAN 1 8 9rwwEw'r'. 4 oep Mr'4nM Alonrnpn C✓ryp.PY Nr1grW Wo up1y^"� G�..x.yr., Nnow v.n t�ow'r.. N�opJ to � ii Rrfcofi HrtgnN ipr.l f ARIZONA TOMOA Ep ' O �r O C V , Q 2021 & 2022 DESTINATION BUSINESS PLAN 1 8 OBJECTIVE 2 REBRAND, RELAUNCH & GIVE -BACK! Through a comprehensive new brand identity system, increase brand awareness for Newport Beach through bold, brand -building initiatives that take the Newport Beach brand beyond a traditional logo into a new community -wide brand identity system that gives back to the damaged tourism, culinary and hospitality industry. STRATEGY: Create new visitor collateral with the new brand identity system including a new Inspiration Guide for Visitors and a new Official Visitor Map. New collateral system will stress the new safety and health standards in Newport Beach and positions Newport Beach as a safe, secure and aspirational respite from the world's issues. STRATEGY: Establish licensing agreements with local retailers, businesses, civic organizations and City of Newport Beach to use the new community brand identity system. Include in the agreements that a portion of the sales would go back to the Newport Beach Foundation to be used as hospitality grants to help our local community recover from the health and economic crisis. Create an online virtual pop-up store to sell newly branded merchandise, retail accessories and high -budget auction items to raise funds for the Newport Beach Foundation for grants back to local businesses. STRATEGY: Plan for a launch event to promote new brand identity and give -back component. Develop a new destination video that tells the story of the new brand identity. STRATEGY: Rebrand all digital channels including Visit Newport Beach website, business unit websites and social media channels with new brand identity system. STRATEGY: Rebrand all corporate collateral, business cards, checks, stationery, office signage with new brand identity system. NEW NEWPORT BEACH BRAND IDENTITY SYSTEM: V� N L WPORT B E A C H & COMPANY NEWPORT BEACH & COMPANY VISIT BEACH C A L I F O R N I A 2021 & 2022 DESTINATION BUSINESS PLAN 1 9 11-12 Primary Identity Overview NFIWPORT BEACH C A L I F O R N I A /1r BEYOND AN ORDINARY BEACH TOWN NEWPORT BEACH IS A WATERFRONT WONDERLAND WHERE ADVENTURE AND OPULENCE INTERSECT, Urem 1".m doWiiir -0. eoneeq mrHi[. e d� nee eva »c4— t isms« d.w,e mea --a aiq.ame,ar,ai.rvn. ur.�e� en:m ea m�n�m.enbm,we .x.14.11 ra.e .r NEWPORT BEACH & COMPANY 2021 & 2022 DESTINATION BUSINESS PLAN 1 10 11-13 NEWPORT BEACH & COMPANY 2021 & 2022 DESTINATION BUSINESS PLAN 1 11 11-14 Fal IDENTITY DESIGN REFINE ®N L- N' PORI EXPLORE HOTELS THiH09 TO 00 REST WQARTS OFFERS 9600 BEACH NEWPORT BEACH & COMPANY VVCL%,iJJVNC IV INC VVI"UKI CSC Ik, rl 7"' +- 2021 & 2022 DESTINATION BUSINESS PLAN 1 12 11-15 OBJECTIVE 3 REFINE & REFOCUS! Refine our leisure traveler audiences from mass -marketing into micro -marketing via seven new audience personas. Using the seven new audience profiles created last fiscal year, develop targeted messaging and content that appeals to each of the seven new audience profiles and deploy paid - media and earned -media strategies to reach each new persona audience. This highly targeted messaging and media strategy laser focused on the right audience persona with the right message and the right time via the right marketing channel will give Newport Beach & Company the most efficient and effective marketing results across all of its business units. Newport Beach Leisure Personas: • Buzz Bound • Spa Fanatics • Romance Seekers • Luxury Traveler • Food Pornographer • Unique Boutiquers • Beach Goers Top Seven Newport Beach Leisure Personas: 0.0 20.0 40.0 680 80 � 1000 STRATEGY: Refine our leisure traveler content across all channels (websites, digital, email, blogs and social media) to ensure better alignment with each of the seven new personas. STRATEGY: Refocus our media relations/earned-media strategy to target media pitches and story placements against each of the targeted personas. STRATEGY: Refine our paid -media and paid -search -engine -marketing, and search -engine -optimization strategies to target the right persona in the right markets with the right messaging at the right time via their preferred media channel. NEWPORT BEACH & COMPANY 2021 & 2022 DESTINATION BUSINESS PLAN 1 13 11-16 82.6 spa r.�na��<s 80.1 Romance Seeker' 77.1 luw y invader 76.2 food panogr.pher 71.7 Unyue 8a+tque , 71.7 Bou h Goer' 70.9 I -A-, 0"'i ­n Seeker 1 69.5 Sun c haw' 68.5 f—d—w h0ut pretense 68.4 Nesvbes 67.9 Unplugged 67.0 Mull, Gon f-0— 66,8 Iheme Parkers 66.6 Nature Wa hert 66.7 lit 8 f.Wob 6S.8 Nmtalgntt 650 P-" 1 64.2 f Trends f Ott 63.8 CUs fun F-1— 63.2 Trend Sen 62.4 Independent Minded 62.2 Sale Guided 62.0 80'd 1 upper' 61.7 Mingling Singles 57.9 &pning luxury lr avelers 49.2 Under -d luxury 47.9 0.0 20.0 40.0 680 80 � 1000 STRATEGY: Refine our leisure traveler content across all channels (websites, digital, email, blogs and social media) to ensure better alignment with each of the seven new personas. STRATEGY: Refocus our media relations/earned-media strategy to target media pitches and story placements against each of the targeted personas. STRATEGY: Refine our paid -media and paid -search -engine -marketing, and search -engine -optimization strategies to target the right persona in the right markets with the right messaging at the right time via their preferred media channel. NEWPORT BEACH & COMPANY 2021 & 2022 DESTINATION BUSINESS PLAN 1 13 11-16 OBJECTIVE 4 RE-CREATE NEW, SAFE VISITOR EXPERIENCES! Reconnect with leisure travelers and meeting attendees and all visitors while they are in Newport Beach via one-to-one, personalized experiences that have been recreated to ensure visitor safety, health and wellbeing. These experiences can be new, safer events, socially -distant venues, revamped brand -defining events, retrofitted businesses, restaurants, retail and attractions. STRATEGY: Work with our hotel, culinary and tourism partners to re-create health -focused experiences and visitor attractions that keep the visitors' health, safety and wellness in mind at all times. STRATEGY: Partner with our brand -defining events to assist with marketing, promotion and production of health -focused events in the new COVID-19 world. STRATEGY: Promote our new, safe visitor experiences to our seven new audience personas via earned media, paid media and owned marketing channels. OBJECTIVE 5 RESTORE MARKETING PROGRAMMING: PRIORITIZED WISH LIST FROM INCREMENTAL REVENUE WAVE 1: Restore Paid -Marketing Channel (Paid Advertising): 1. Paid Search -Engine Marketing (SEM)/Pay-Per-Click Digital Advertising 2. Paid Digital Display Network Advertising (Google Display) 3. Paid Social Media Advertising (Facebook, Instagram) 4. New or Re-edit Previous Ad Campaign Creative using new Brand Identity System 5. Paid Print, Digital Banner/Rich-Media, TV, Video Pre -roll, Out -of -Home and Terrestrial Radio/Digital Radio Advertising WAVE 2: Restore Earned -Media Programming (Media Relations): 1. U.S. Media Familiarization Trips to Newport Beach 2. U.S. Media Relations Missions to Major Media Markets (Tier 1 Feeder Markets + NYC) WAVE 3: Restore Owned -Channel Programming (Content Storytelling): 1. Full-time Videographer/Video editor/Producer 2. Bloggers and Travel Writers 3. Destination Photography 4. Content Creators/Editors on Staff WAVE 4: Restore International Offices & Programming (Content Storytelling): 1. U.K. Market Travel Trade & Public Relations Representation 2. International Media Relations Familiarization Trips to Newport Beach 3. Newport Beach Film Festival U.K. Honours Event & Sales Mission 4. Canada Market Travel Trade & Public Relations Representation Middle East Super -Affluent Public Relations Agency China Luxury Travel Trade, PR Representation, Virtuoso Luxury Partnership or Reciprocal China Luxury Agency in L.A. (Visit California Luxury Partnership) NEWPORT BEACH & COMPANY 2021 & 2022 DESTINATION BUSINESS PLAN 1 14 11-17 MEETING PLANNER BUSINESS PLAN SITUATION ANALYSIS Mandates limiting gathering sizes to no larger than family units combined with shelter in place orders prompted by governments to "flatten the curve" of COVID-19 infection swiftly impacted the U.S. meeting industry in mid-March 2020. Convention centers became field hospitals almost overnight, and hotels started closing, leaving a lot of meetings planned for Q2 of 2020 cancelled with little to no notice. In mid-March Microsoft gave notice that the 25,000 -person Ignite IT professional conference planned for September 2020 in New Orleans would not have a physical footprint. Its 2020 MVP Global Summit was also canceled and no details were forthcoming about the 2021 event. Then, in mid-April, Facebook announced that it was canceling all its planned physical events of more than 50 people through June 2021. Many other organizations, corporate and nonprofit, felt they had no choice but to put the brakes on large, complex events until a clearer picture of the health and safety landscape was available. Lawyers agreed a world under lockdown fell under force majeure, because it was both "impractical" and illegal to meet. That left meeting professionals with three choices: • Postpone: Reschedule to a date when, it was hoped, it would be allowed, safe and acceptable to gather. • Pivot: Flip the meeting to a virtual format. • Cancel: Wait until there is more certainty; or, at best, a vaccine. • A survey of 1,685 meeting planners with booked programs in the second half of 2020 found that many are doing all three: Moving meetings to a future date was the most common survey response, but it turned out individual planners utilized a combination of postponing, pausing and pivoting. HOW ARE MEETING PLANNERS HANDLING CONFIRMED MEETINGS Q2 AND Q3 of 2020: • 69% Postpone • 56% Cancel • 52% Pivot to virtual Source: SMART Meetings, May 2020 PIVOT TO VIRTUAL Just over half of planners, according to the survey, are planning to convert their programming to a virtual or hybrid program to expand their reach beyond the number of people willing to travel to a destination in the short term. They are testing new delivery methods and learning what works in the physical and virtual world so they can achieve their objectives regardless of COVID-19 duration and outcomes. As planners have been forced to master virtual -meeting technology and strategies, many have stated that streaming and charging for content will be another reliable go -to in the meeting professionals' toolbelt and hybrid meetings are here to stay. To return to in-person meetings, planners said they are looking for official standards to benchmark safety best practices in room design, elevator operation, food and beverage, additional restroom facilities... and operational guidelines for things such as staggered registration and breaks. They need a clearer picture of what it means to get back to business. NEWPORT BEACH & COMPANY 2021 & 2022 DESTINATION BUSINESS PLAN 1 15 11-18 The abundance of caution and go-slow approach will be the modus operandi and size of groups will decrease. Many planners have expressed fear of signing binding contracts and are asking for and getting more flexible attrition, food and beverage minimums and easier cancellation clauses. With these changes in the meetings ecosystem, hotels will need to adjust group room nights and revenue expectations knowing that recovery time could easily extend into 2021. COVID-19 affected the TBID very directly. The Visit Newport Beach, Inc. Group Sales Team has been reduced by three people and TBID budget has decreased by 80 percent. While our program will not be as extensive and far-reaching with programming as before the pandemic, we have proven to be one of the stronger DMOs in the region. Our recovery team will consist of three -and -one-half experienced market sellers with the most critical aspects of our budget and initiatives intact. The hope for all sides of the meetings industry is that ultimately, the very absence of face-to-face gatherings may serve to underscore and reinforce their value going forward. The entire world is now missing what they may have taken for granted in the past. With the internal mantra, "Recover & Reimagine," Newport Beach & Company and Visit Newport Beach, Inc. plan to think in new, innovative ways to reconnect and rebuild relationships with meeting planner customers and position Newport Beach as the premier small -meetings destination. Together, with the challenges set by this new post-COVID-19 world, an increasing role of intermediaries in the meeting -planning process, and an ever-increasing charge to further establish the value of partnership with a DMO, our sights are set to "Recover & Reimagine" with this two-year business plan. Group meetings have always been a robust part of the hotel industry, and Visit Newport Beach, Inc. is committed to the process of recovery in our TBID community. Let's get to work! NEWPORT BEACH & COMPANY 2021 & 2022 DESTINATION BUSINESS PLAN 1 16 11-19 MEETING PLANNER BUSINESS PLAN OBJECTIVES, STRATEGIES & TACTICS OBJECTIVE 1 RECONNECT AND REBUILD! Reconnect with our formidable customer base and generate renewed interest to bring meetings back to Newport Beach. STRATEGY: Create consistent, uplifting communications engaging the full database of leads, conveying knowledge and assurance of Newport Beach hospitality safety standards and the full support of partnership with seasoned, engaged destination professionals. STRATEGY: Promotional campaign encouraging Southern California companies and organizations to consider Newport Beach as an idyllic host city for their meetings. STRATEGY: Bring the team to the planner by hosting virtual sales calls and attending virtual one-on-one meetings, industry events and conferences, while remaining open to attend in-person customer and industry events. STRATEGY: Bring the destination experience to the planner: use compelling video content and video conferencing technologies to share a sensory rich experience of the destination in situations when in person is not feasible. OBJECTIVE 2 RE-EVALUATE AND REFINE! Research and adapt to market shift and business trends in response to the post-COVIDI9 meetings climate in order to effectively communicate to clients at every stage of the funnel. STRATEGY: Utilize data derived from CVENT and Simpleview CRM to assess "new standards" in meetings ecosystem as far as size, layouts, contract terms, cleanliness standards, AV and technology changes, site visit protocols and expectations. Use this information to create relevant and trustworthy sales and marketing messaging specific to subsets of customers. STRATEGY: Proactive direct sales efforts to be redeployed in local and regional drive markets; Central California to San Diego; doubling down on sales resources and time spent in these markets. STRATEGY: Team to re-evaluate location of RFPs frequently and adjust deployment and sales efforts accordingly. STRATEGY: Leverage synergy of CRM data with marketing automation software to develop informed buyer journey strategies and send out geo-targeted, personalized sales communications to clients. NEWPORT BEACH & COMPANY 2021 & 2022 DESTINATION BUSINESS PLAN 1 17 11-20 STRATEGY: Review target accounts and markets alongside new size and other standards, committing to an ongoing process of identifying emerging trends and recalibrating as necessary. STRATEGY: Continue targeted account direct mail gift program from last fiscal year which uses TBID resource in the most direct way possible, sending our message and invitation to do business to the literal doors of the most qualified accounts for TBID hotels. ORJFCTIVF 3 RELATE AND REINFORCE! Remind and inspire planners that the destination, and the powerful team of destination professionals that represent it, is a safe and smart choice for their meetings. STRATEGY: Leverage familiar group meeting brand "characters" and incorporate new logo and brand accents through all sales and marketing customer interactions with planners. STRATEGY: Strengthen Newport Beach brand meetings proposition of "no one invests in small meetings like Newport Beach" via promotions, elevated service and planner testimonials. STRATEGY: Activate all owned and earned marketing and PR channels with strategic storytelling. NEW MEETINGS AD CAMPAIGN & POSITIONING: The.. ir. pl.c...h.n. ,hi.li..l.d.11.r..nd h.ight. d.rl.nli.n l.M. y..r 711- 11 m..xing. m kh.-­­ 11 . 1. 1- Vi- i N—p.r. B. h d.hr mor. r .... r .. 1.6.1 .j F.c 1..h.. W m 0.g. m A.. A..."..h.r d.rfl..fl.n. • •r• R.I.. sh. h...d.n y.. r mg in H. pars 8.. h. M.. ng. NO—. NEWPORT BEACH losiRNh■ WELL ■ETo No. NEWPORT BEACH & COMPANY 2021 & 2022 DESTINATION BUSINESS PLAN 1 18 11-21 OBJECTIVE 4 RESTORE DIRECT SALES PROGRAMMING: PRIORITIZED WISH LIST FROM INCREMENTAL REVENUE WAVE 1: Restore TBID funds for Hotel Booking Incentives: These funds will be more effective than ever in slow moving group meeting market 1. Highly effective use of TBID funds for each hotel to use for extra fire power on most competitive programs. 2. Allocate dollars to each hotel in increments of $10,000 as money becomes available, based on TBID contributions. WAVE 2: Restore Direct Sales Initiatives: These initiatives allows us to directly impact clients with most potential to book Newport Beach 1. Destination Site Inspections when clients are ready to resume travel including sponsored airfare when necessary 2. Promotional campaign for calendar year-end RFP conversion; includes marketing materials and extra client incentive for conversion 3. Targeted gift campaign to top -tier clients: direct bumpy mailer campaign to generate RFP and site -visit activity with highly -qualified accounts (culinary campaign from FY2020) WAVE 3: Restore Industry Partnerships to pre-COVID levels: Visit Newport Beach and our hotels derive benefits and greater exposure with premium industry partnerships 1. Bring CVENT partnership back to thee -diamond level 2. Restore HelmsBriscoe and Conference Direct to previous levels 3. Re-engage with Prestige and HPN events WAVE 4: Restore Travel and 2021 Tradeshow Options: Team to get back on the road to key markets as travel becomes feasible to re-establish our positioning of Newport Beach being the premium Southern California location for small -to -midsize meetings. 1. With TBID hotels staffing and budgets adversely affected from COVID-19, the importance of Visit Newport Beach at key tradeshows and industry events representing entire destination becomes more critical. 2. Leverage strength of Visit Newport Beach Group Sales team relationships, destination branding and positioning in a landscape where many destinations will be absent 3. Rotate partner hotel inclusion where possible with registration fees 4. Combine sales calls in same or nearby cities tradeshow/event WAVE 5: Restore paid advertising to engage key markets, share the Visit Newport Beach value proposition, and boost awareness of the destination brand story 1. Place strategic, paid -media buys to promote Newport Beach on media channels relevant to planners in targeted media markets to drive awareness, incremental booked meetings, spending and repeat business in Newport Beach. 2. Develop campaigns focused on drive markets/Southern California business and investigate complimentary promotions. 3. Maximize paid media exposure through value-added editorial and earned media coverage. NEWPORT BEACH & COMPANY 2021 & 2022 DESTINATION BUSINESS PLAN 1 19 11-22 LOCAL COMMUNITY BUSINESS PLAN SITUATION ANALYSIS Last year's start of the COVID-19 Pandemic particularly impacted our tourism and meetings industry, but our neighborhoods, restaurant/dining industry, brand -defining events and other local businesses were significantly impacted. Many of these specific industries and events are managed via our four Newport Beach & Company Community Business Units. Newport Beach & Company serves as the community - marketing agency for the City of Newport Beach, California. Our six subsidiary business units include: Visit Newport Beach (tourism/leisure), Visit Newport Beach (meetings/group), Newport Beach TV (government -access television channel/television studio/video storytelling), Enterprise Newport Beach (merchant associations/economic development), Dine Newport Beach (Newport Beach Restaurant Association) and Celebrate Newport Beach (brand -defining events). Through its unique business -unit structure, Newport Beach & Company serves as a community - marketing agency providing diversified marketing, group sales, sponsorship, event planning and brand - building services to drive economic development for the City of Newport Beach, Tourism Business Improvement District (TBID) hotel partners, Newport Beach Restaurant Association, Balboa Village Merchants Association, Balboa Island Marketing, Inc. and Newport Beach TV. Newport Beach & Company also serves as a community -marketing agency and provides marketing, public relations, sponsorship, event planning and brand -development services to increase attendance, enhance the customer experience and promote the overall Newport Beach brand for signature events in Newport Beach. Newport Beach signature events include but may not be limited to: Newport Beach Christmas Boat Parade, Newport Beach Film Festival, Newport Beach Wine & Food Festival, Newport Beach Restaurant Week, Hyatt Regency Newport Beach Jazz Festival, Hyatt Regency Newport Beach Summer Concert Series and Newport -to -Ensenada International Yacht Race. In the next two fiscal years, Newport Beach & Company will serve as the recovery marketing agency for many of these business units—building and executing COVID-19 marketing recovery campaigns to assist local businesses, restaurants, neighborhoods and brand -defining events with marketing prowess. With the internal mantra, "Recover & Reimagine,' Newport Beach & Company plans to engage the local community in new, innovative ways to promote the value of tourism, Newport Beach & Company and drive economic recovery and reimagine branding and marketing in this new COVID-19 world. The cross -functional planning team developed this integrated business plan for the local -community customer segment with a management -by -objectives approach where objectives are quantifiable goals, strategies form the strategic approaches to reaching the benchmark objectives, and tactics are projects that support overarching strategies. NEWPORT BEACH & COMPANY 2021 & 2022 DESTINATION BUSINESS PLAN 1 20 11-23 LOCAL COMMUNITY BUSINESS PLAN OBJECTIVES, STRATEGIES & TACTICS OBJECTIVE 1 RECONNECT & REBUILD! Reconnect and rebuild integrated marketing campaigns targeting visitors (regional) and residents within a 100 -mile radius of Newport Beach who will have a high -propensity to travel to Newport Beach during targeted need periods to drive recovery efforts and generate business to local restaurants, neighborhoods, local businesses and brand -defining events. STRATEGY: Create fully integrated advertising campaigns for Dine Newport Beach, Newport Beach Restaurant Week/Month, Newport Beach Christmas Boat Parade and other local community business units. STRATEGY: Refocus media relations team on a regional/local earned -media approach. Strongly tie media pitching to the paid -advertising markets to ensure greater return -on -investment. Pitch new content and story ideas positioning our culinary and hospitality businesses as safe, healthy and secure. STRATEGY: Rebuild digital -marketing channels for the post COVID-19 world with new digital content such as virtual destination tours, new video storytelling, new blogs and social media content and digital storytelling for Dine Newport Beach, Celebrate Newport Beach, Newport Beach TV and Enterprise Newport Beach. STRATEGY: Rebuild event -marketing strategy for events such as Newport Beach Restaurant Week, Wellness Week and Newport Beach Christmas Boat Parade. Explore adding additional events to drive business to restaurants, neighborhoods and local businesses during need periods. STRATEGY: Refocus the spotlight on COVID-19 Hospitality Recovery Efforts via guest column on StuNews and other local media outlets. OBJECTIVE 2 REBRAND, RELAUNCH & GIVE -BACK! Through a comprehensive new brand identity system, increase brand awareness for Newport Beach through bold, brand -building initiatives that take the Newport Beach brand beyond a traditional logo into a new community -wide brand identity system for Dine Newport Beach, Celebrate Newport Beach, Enterprise Newport Beach, Newport Beach TV and possibly other community events and programs. STRATEGY: Create new brand identity systems for each of the four business units: Dine Newport Beach, Celebrate Newport Beach, Enterprise Newport Beach, Newport Beach TV and other community events and programs. STRATEGY: Create new event branding based on new destination brand identity system for Newport Beach Restaurant Week and Newport Beach Restaurant Week. NEWPORT BEACH & COMPANY 2021 & 2022 DESTINATION BUSINESS PLAN 1 21 11-24 STRATEGY: Rebrand all digital channels including Dine Newport Beach website, business unit websites and social media channels with new brand identity system. NEW BUSINESS UNIT BRAND IDENTITY SYSTEM: CELEBRATE w NEWPORT BEACH ENTLRPRISL a NEWPORT BEACH NEW DINE NEWPORT BEACH BRAND IDENTITY SYSTEM: BEACH —•� RESTA,J-ANT ,.....WEEK ..,. ' s . _ 111 �1• NEWPORT BEACH & COMPANY 2021 & 2022 DESTINATION BUSINESS PLAN 1 22 11-25 NEW NEWPORT BEACH TV BRAND IDENTITY SYSTEM: LcCKUP NEWPORT BEACH & COMPANY 2021 & 2022 DESTINATION BUSINESS PLAN 1 23 11-26 III. GOVERNANCE PAGES SECTION CONTENTS 25 FY2021 & FY2022 Goals 27 FY2021 & FY2022 Budgets 28 Newport Beach & Company/Visit Newport Beach, Inc. Executive Committee 29 Newport Beach & Company/Visit Newport Beach, Inc. Board of Directors 30 Visit Newport Beach, Inc. TBID Board of Directors 31 Newport Beach & Company Marketing Committee 32-33 Newport Beach & Company Staff NEWPORT BEACH & COMPANY 2021 & 2022 DESTINATION BUSINESS PLAN 1 24 11-27 FY2021 & FY2022 GOALS GOALSVISIT NEWPORT BEACH - LEISUREJ MARKETING FY2021 .. FY2022'1 .. DIGITAL MARKETING Web Visits VNB.com Web Visits 700,000 910,000 Referrals to Partner Websites 50,000 65,000 SOCIAL MEDIA 2,600,000 MEDIA RELATIONS Social Followers 230,000 299,000 MEDIA RELATIONS 325 Media Placements 1,000 1,300 Key Media Outlet Placements 75 98 Key Trade Media Placements 20 26 M���� FWDIGITAL FW MARKETING CONSUMER DINING SPENDING Web Visits 50,000 65,000 ADVERTISTING DIGITAL MARKETING Total Advertising Impressions 2,000,000 2,600,000 MEDIA RELATIONS NBRW Online Reservations & Take -Out Orders 5,500 Media Placements 250 325 D!&"ORT .••GOALS FY2021 1 • 20221IE •• CONSUMER DINING SPENDING Video Views111 Estimated Consumer Spending $2,500,000 3,000,000 DIGITAL MARKETING DineNB.com Web Visits 100,000 130,000 NBRW Online Reservations & Take -Out Orders 5,500 6,600 SOCIAL MEDIA Social Media Followers 18,000 20,700 MEDIA RELATIONS Media Placements 100 120 VIDEO NEWPORT BEACH GOALS FY2021 FY2022 GOAL GOAL VideoNew Episodes1 Video Views111 11 NEWPORT BEACH & COMPANY 2021 & 2022 DESTINATION BUSINESS PLAN 1 25 11-28 FY2021 & FY2022 GOALS VISIT NEWPOR BEACH, INC. TOURISM BUSINESS IMPROVEMENT DISTRICT (TBID) FY2021 & FY2022 GROUP SALES GOALS FY2021 & FY2022 GOALS: COVID-19 resulted in a major hospitality and travel shutdown. The potential midrange and long-range consequences on meetings make our traditional room night goal setting impractical. While the pandemic has certainly disrupted the forward momentum of pure definite room nights, our team is still committed to delivering the very best support possible to our TBID hotels. The VNB sales team has historically thrived with definitive goals and a cadence of accountability. Individuals have been goaled with accelerated room nights in years past, and have been motivated to exceed them. Recovery of group meetings is our mission and our new goals will support the critical "leading activities" to get to the end result: 1. Direct Sales. Dedicating our prime selling time to the top accounts in the markets that are presenting themselves in credible research as the quickest to come back. True to the 80/20 rule, 80 percent of our selling time will focus in tight on the 20 percent most valuable accounts/opportunities. 2. Virtual tours. Bring the destination to the planner by using brand tools and technology to give clients the best sensory virtual experience of the destination. Use zoom calls with partners to have clients feel they have met us in the next best way possible. Resume site tours as soon as possible. 3. Engage in industry meetings (virtual or in-person). Bring our best to these opportunities, representing Visit Newport Beach and our hotels and sponsoring where feasible. 4. Collaboration with hotels. This has always been the secret sauce of the VNB TBID: a true partnership that brings combined talent, attention and resources to each opportunity. This coalition is a powerful mechanism to compete in a crowded landscape. 5. Ongoing training/Education. Team committed to learning new skills, enabling effective adaptations and innovations needed to stay on the cutting edge of evolving environment. NEWPORT BEACH & COMPANY 2021 & 2022 DESTINATION BUSINESS PLAN 1 26 11-29 FY2021 & FY2022 BUDGETS FY2021 & 2022 VISIT NEWPORT BEACH (TOT) BUDGETS TF)tbilBBgitalrMSrkatingigwati►iees $MWIP SM3$,� Tbdt1IGWmeydaiiagtffinWR hIc Relations Expenses SMP„'Cl ) W%050 I d s $i Wm W 101:41.3 _Tel:E:meZ•]�I'l_@o!5'ill 01 T7I3fWn& Company Fees 0,900%2 $V1:K13a77 Total Operating Expenses $1,633,512 $2,286,917 TORI $1,272,441 $1,590,551 Total Operating Expenses T I r tin venue To�a9 dpv�risirr�xpenses�270 $1,272,441 $1,�F, $1 590 551 $2, �9 4 6�5 T t I eratir� se Expenses $1, U $2, 4 �To��aa ���o,�pmm,uni �'b�fNions l o�aTl.lpUl�g,it'a9N eting txpenses �� $1 ,)Fa q ����d0 $1 -IRY To aallTr � "*gAVISIT NEWPORT T_i_I A_I.._.s. BEACFf BUDG NEWPORT BEACH & COMPANY 2021 & 2022 DESTINATION BUSINESS PLAN 1 27 11-30 Total Operating Revenue $1,175,983 $1,881,572 Total Operating Expenses $1,272,441 $1,590,551 Total Promotional Expenses $49,750 $74,625 Total Community Relations Expenses $10,000 $15,000 Total Digital Marketing Expenses $42,044 $63,067 Total Tradeshow Expenses $131,926 $197,889 Total Sponsorship Expenses $307,075 $460,613 Total Sales Incentives/Customized Destination Support $47,000 $70,500 NEWPORT BEACH & COMPANY 2021 & 2022 DESTINATION BUSINESS PLAN 1 27 11-30 GOVERNANCE VISIT NEWPORT BEACH, INC. (TOT) TOURISM -OCCUPANCY TAX/NEWPORT BEACH & COMPANY EXECUTIVE COMMITTEE Debbie Snavely Candace Bisconte, DMCP General Manager, Partner, ACCESS Destination Services Newport Beach Marriott Hotel & Spa Treasurer, Member at Large Chairperson, Permanent Member Russ Kline Homer Bludau Director of Sales, American Express Former City Manager Member at Large Vice Chairperson, Member at Large Gerard Widder Linda M. Beimfohr Managing Director, The Resort at Pelican Hill VP, Hornblower Cruises & Events Member at Large Secretary, Member at Large Sharon Wood Former Assistant City Manager City of Newport Beach Appointee NEWPORT BEACH & COMPANY 2021 & 2022 DESTINATION BUSINESS PLAN 1 2$ 11-31 VISIT NEWPORT BEACH, INC. (TOT) TOURISM -OCCUPANCY TAX/NEWPORT BEACH & COMPANY BOARD OF DIRECTORS Joe Adams CEO, DiscoveryCube/Ocean Quest David Beek Owner, Balboa Island Ferry Adam Beer General Manager, Lido House Hotel, Permanent Member Linda M. Beimfohr VP, Hornblower Cruises & Events *Secretary, Member at Large Candace Bisconte, DMCP Partner, ACCESS Destination Services *Treasurer, Member at Large Homer Bludau Former City Manager *Vice Chairperson, Member at Large Charles Cho General Manager, Newport Beach Marriott Bayview, Permanent Member Rush Hill NRM Real Estate Advisors Kory Kramer Partner, Eagle Four Partners, Balboa Bay Resort, Permanent Member Russ Kline Director of Sales, American Express *Member at Large Dennis Kuhl Chairman, Angels Baseball Jon Lewis Chief of Police, Newport Beach Police Department Dan Matusiewicz Finance Director, City of Newport Beach Steve Pufpaf General Manager, Renaissance Newport Beach Hotel, Permanent Member NEWPORT BEACH & COMPANY Sid Ramani General Manager, Hyatt Regency Newport Beach, Permanent Member Steve Rosansky President and CEO, Newport Beach Chamber of Commerce Alex Santander General Manager, Newport Dunes Waterfront Resort & Marina, Permanent Member Ron Schwartz Owner, Muldoon's Irish Pub, Board of Directors, Newport Beach Restaurant Association Gregg Schwenk CEO/Co-Founder, Newport Beach Film Festival Debbie Snavely General Manager, Newport Beach Marriott Hotel & Spa *Chairperson, Permanent Member Joe Stapleton President, Spinnaker Investment Group Tanya Thomas, CSM Vice President & General Manager, Fashion Island Gerard Widder Managing Director, The Resort at Pelican Hill, Permanent Member Sharon Wood Former Assistant City Manager *City of Newport Beach Appointee OPEN General Manager, Fashion Island Hotel Newport Beach OPEN Hyatt Regency John Wayne Airport, Newport Beach *Position on Executive Committee 2021 & 2022 DESTINATION BUSINESS PLAN 1 29 11-32 VISIT NEWPORT BEACH, INC. (TBID) TOURISM BUSINESS IMPROVEMENT DISTRICT BOARD OF DIRECTORS Adam Beer General Manager, Lido House Hotel, Permanent Member Charles Cho General Manager, Newport Beach Marriott Bayview, Permanent Member Kory Kramer Partner, Eagle Four Partners, Balboa Bay Resort, Permanent Member Steve Pufpaf General Manager, Renaissance Newport Beach Hotel, Permanent Member NEWPORT BEACH & COMPANY Sid Ramani General Manager, Hyatt Regency Newport Beach, Permanent Member Alex Santander General Manager, Newport Dunes Waterfront Resort & Marina, Permanent Member Debbie Snavely General Manager, Newport Beach Marriott Hotel & Spa *Chairperson, Permanent Member OPEN General Manager, Fashion Island Hotel Newport Beach OPEN Hyatt Regency John Wayne Airport, Newport Beach *Position on TBID Executive Committee 2021 & 2022 DESTINATION BUSINESS PLAN 1 30 11-33 NEWPORT BEACH & COMPANY MARKETING COMMITTEE Ben Stinnett Jan Hollis Newport Beach Marriott Hotel & Spa Hyatt Regency John Wayne Airport, Chairperson Newport Beach Lindsey Rodriguez Kevin Keaveny Hyatt Regency Newport Beach The Resort at Pelican Hill Vice Chairperson Diana Parsel Kelly Carlson Irvine Company Retail Properties Balboa Village Merchants Association John Pope Chad Ceretto City of Newport Beach Marriott International Liz Sheldon Angela Cortright Renaissance Newport Beach Hotel Spa Gregorie's Maureen Sloan Sarah Crowe HelmsBriscoe Irvine Company Resort Properties Keith Walker Nancy Gardner Hornblower Cruises & Events Former Mayor, City of Newport Beach Jan Yerzik Newport Dunes Waterfront Resort Nicole Hay 21 Oceanfront Restaurant/ OPEN Doryman's Oceanfront Inn Balboa Bay Resort OPEN Fashion Island Hotel OPEN John Wayne Airport, Orange County NEWPORT BEACH & COMPANY 2021 & 2022 DESTINATION BUSINESS PLAN 1 31 11-34 NEWPORT BEACH & COMPANY STAFF EXECUTIVE TEAM Gary C. Sherwin, CDME, APR President & CEO Michelle Donahue, CDME Senior Vice President of Group Sales Doug McClain, CDME Senior Vice President & Chief Marketing Officer Lily Pearson, CPA Vice President of Finance ADMINISTRATION Gary C. Sherwin, CDME, APR President & CEO Lily Pearson, CPA Vice President of Finance Dina Alleluia -Carr Finance Coordinator MARKETING Doug McClain, CDME Senior Vice President & Chief Marketing Officer Erin Rose Senior Director of Media Relations Jackie Infante Creative Director Brianna Grimaldi Senior Manager of Digital Marketing Melissa Jacobi Senior Manager of Multimedia & Partnerships Grace Hong Manager of Communications NEWPORT BEACH & COMPANY 2021 & 2022 DESTINATION BUSINESS PLAN 1 32 11-35 NEWPORT BEACH TV Ed Olen Independent Consultant Dominic Dimare Production Assistant Luis Hererra Newport Beach TV Camera Crew GROUP SALES Michelle Donahue, CDME Senior Vice President of Group Sales Amanda Kleim Director of Sales Michelle Devine National Account Director Enrique Paulo National Account Director Michelle Devine National Account Director Jane Loenhorst Group Marketing & Communications Director Jennifer Brannon Destination Services Manager RECOVER & REIMAGINE. © 2020. NEWPORT BEACH & COMPANY 1600 NEWPORT CENTER DRIVE, SUITE 120 NEWPORT BEACH, CA 92660 800 -94 -COAST NEWPORT BEACH & COMPANY 2021 & 2022 DESTINATION BUSINESS PLAN 1 33 11-36 VISIT N F"'PORT BEACH CALIFORNIA ATTACHMENT B Visit Newport Beach, Inc. Leisure Marketing (TOT) FY2021 and FY2022 Budgets Operating Revenue Revenue 41000 - TOT/TBID Income 1,374,884 2,199,814 44000 - Event Hosting Income 31000 4,800 Total Revenue 1,377,884 2,204,614 46001 - Interest Income - - Total Operating Revenue 1,377,884 2,204,614 Expenses Salary and Wages 61010 - Salaries and Wages - - 61030 - Payroll Tax Expenses Total Salary and Wages - - Benefits 61140 - Retirement Plan (401k) 61150 - Flexible Spending Plan Total Benefits - - General and Administrative Expenses Operating Expenses Operating Expenses 64100 - Office Supplies 300 420 64101 - Stationary 1,524 2,134 64115 - Office Equipment (non-deprec) - - 64120 - Equipment Repairs & Maintenance - - 64125 - Computer Software (non-deprec) 7,320 10,248 64130 - Voice and Data - Office 120 168 64145 - Shipping Charges 100 140 64150 - Bank Fees - - 64160 - Membership Dues 36,395 50,953 64170 - Team Meetings 1,000 1,400 64175 - Governance Meeting Expenses 8,875 12,425 64190 - Business Licensing and Fees - - 64300 - Depreciation Expense 7,100 9,940 64600 - Business Meals/Entertainment - - 64610 - Client Gifts - - Total Operating Expenses 62,734 87,828 Insurance 63100 - General Liability Insurance - - 63300 - Board of Directors Insurance 3,650 5,110 Total Insurance 3,650 5,110 Professional Fees 11-37 V� VISIT F",PORT BEACH CALIFORNIA Visit Newport Beach, Inc. Leisure Marketing (TOT) FY2021 and FY2022 Budgets 64205 - Payroll Processing Service 64207 - Bloggers - - 64201 - Audit Fees 3,000 4,200 64202 - Tax Preparation Fees 1,000 1,400 Total Professional Fees 4,000 5,600 Travel Expenses 65400 - Transportation Costs - - 65405 - Mileage ($0.535/mile 2017) Total Travel Expenses - - Total General and Administrative 70,384 98,538 Advertising Expenses 66101 - Advertising - Purchased - - 66102 - Advertising - Local Events 66103 - Advertising Promotions - Media 66104 Advertising Tracking Media 66202 - Ad Production 66203 - Creative Design/Development - - 66205 - Photography/Video Production 24,132 37,405 Total Advertising Expenses 24,132 37,405 Marketing Expenses Community Relations 67103 - Community Partner Events - - 66212 - Community Sponsorships 75,000 116,250 67101 - Research 24,840 38,502 67102 - Christmas Boat Parade 120 186 67105 - Awards - - 67107 - Promotional Items 67108 - Company -Sponsored Events 67109 - Hospitality Training - - Total Community Relations 99,960 154,938 Marketing Collateral 67301 - Inspiration Guide - - 67302 - Maps 67303 - Special Interest Collateral 67311 - Collateral Production Expenses - - 67312 - Collateral Distribution 7,200 11,625 Total Marketing Collateral 7,200 11,625 Digital Marketing 67502 - Website Maintenance 74,132 114,905 67503 - Online Search Advertising - - 67504 - Digital Advertising 2,240 3,472 67505 - Online Contests/Promotions - - 11-38 V) VISIT N 1-]\/\1P0R BEACH CALIFORNIA Visit Newport Beach, Inc. Leisure Marketing (TOT) FY2021 and FY2022 Budgets 67506 - Mobile Application 109,000 168,950 67508 - Website Redesign Expenses - - 67511 - Digital Lifestyle Channel Production - - 66211 - CRM Maintenance 20,000 31,000 Total Digital Marketing 205,372 318,326 Communications/Public Relations 67601 - Media Services 12,000 18,600 67602 - Media FAM Tours - - 67605 - Media Special Programs 67607 - Media Relations 67608 - Digital Assets/Media Library - - Total Communications/Public Relations 12,000 18,600 Total Marketing Expenses 324,532 503,489 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/Entertainmen - 67412 - International Brand Events 300 67413 - International Sales Missions - Total International Marketing Initiatives 300 - NB&Company Fees 68001 - NB&Co Fees 1,389,882 2,154,317 Total NB&Company Fees 1,389,882 2,154,317 Total Expenses 1,809,230 2,793,749 Net Income (431,346) (589,134) 11-39 yy ATTACHMENT C VISIT N L"I PORT FY 2019-20 B E A C H VISIT NEWPORT BEACH, INC. CALIFORNIA TOURISM OCCUPANCY TAX (TOT) LEISURE MARKETING PERFORMANCE STANDARDS REPORT MEDIA PLACEMENTS KEY MEDIA PLACEMENTS NOTES: 1. ALL PAID ADVERTISING AND INTERNATIONAL MARKETING CEASED ON MARCH 16, 2020 DUE TO THE COVID-19 PANDEMIC. 2. SPRING 2020 LEISURE AD CAMPAIGN HALTED MARCH 16, 2020, AND DID NOT RUN. 3. SPRING INTERNATIONAL MARKETING, INTERNATIONAL FAM VISITS AND IPW CONVENTION WERE CANCELLED DUE TO THE PANDEMIC. 4. WEBSITE, SOCIAL MEDIA AND PUBLIC RELATIONS CONTINUED BUT ON A MORE LIMITED, LOCAL/REGIONAL BASIS AFTER MARCH 16 THROUGH JUNE 30, 2020. 11-40