HomeMy WebLinkAbout21 - NBCo & NBTBID Annual Reports & BudgetsCITY OF
NEWPORT BEACH
City Council Staff Report
August 12, 2014
Agenda Item No. 21.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Dave Kiff, City Manager— (949) 644 -3002, dkiff @newportbeachca.gov
PREPARED BY: Tara Finnigan, Public Information Manager
PHONE: 949- 644 -3035
TITLE: Newport Beach & Company 2014/2015 & 2015/2016 Marketing Plan and Budget
and the Newport Beach Tourism Business Improvement District FY 15 Annual
Report and Budget
ABSTRACT:
Visit Newport Beach, Inc. (VNB), a division of Newport Beach & Company, provides destination marketing
services to the City of Newport Beach (City) under a 2011 agreement for Tourism Promotion, Branding,
and Marketing Services (Agreement). The Agreement was amended by the City Council on January 28,
2014. Under the amended Agreement, VNB is required to submit certain records to the City Council for its
review and /or approval. VNB also serves as the administrator for the Newport Beach Tourism Business
Improvement District ( NBTBID). VNB has submitted the NBTBID's Fiscal Year (FY) 2014 - 2015 Annual
Report and budget for the Council's review and approval.
RECOMMENDATION:
a) Authorize a waiver of the timelines provided in Section 6 of the Agreement;
b) Authorize the City Manager to enter into a second amendment to the Agreement with VNB to change
the reporting timeline for the Performance Standards / Marketing Goals and the Marketing Plan reporting
from annual to biennial to correspond with the budget reporting timeline;
c) Review VNB's Performance Standards / Marketing Goals Report;
d) Review Newport Beach & Company's 2014/2015 & 2015/2016 Marketing Plan;
e) Review, approve and /or modify VNB's FY 2014 -2015 and FY 2015 -2016 budgets;
f) Review and approve the FY 2014 -2015 NBTBID Annual Report; and
g) Review and approve the NBTBID's FY 2014 -2015 budget.
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. Under the terms of the 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 non -profit 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 first entered into on May 12, 2004
and was last amended on January 28, 2014. The current Agreement will expire on December 31, 2024.
The amended Agreement allows for VNB to submit a biennial budget - in each even - numbered year during
the term of the agreement - for the City Council's review and approval. VNB's Board of Directors and
management believe the two -year budget provides for better long -term planning. VNB also changed its
performance standards / marketing goals report and the marketing plan to align its goals and objectives
with this same two -year period. Therefore, staff is requesting the City Council's approval of a biennial
performance standards / marketing goals report and marketing plan rather than as specified in the terms of
the Agreement. In addition, the City Manager is seeking authority to execute a second amendment with
VNB to switch these reporting requirements from annual to biennial to correspond with the budget reporting
process.
Thus, pursuant to the terms of the January 2014 amended Agreement, the following records are attached
for the Council's review: a performance standards / marketing goals report (Attachment A) and Newport
Beach & Company's 2014/2015 & 2015/2016 Marketing Plan (Attachment B). Also attached are VNB's FY
2014 -2015 (FY 15) and FY 2015 -2016 (FY 16) budgets (Attachment C) for the City Council's approval.
The Agreement calls for the marketing plan, performance standards report and budget to be submitted to
the City Council by the second meeting in July. City staff was not able to place the items on the Council's
July 22 agenda and is therefore requesting that the City Council waive the timelines specified in the
amended agreement and approve or amend the items as submitted on August 12.
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 now includes eight hotels or resorts, each consisting of 100 hotel rooms or more, located
within Newport Beach. They are: the Balboa Bay Club and Resort, 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 2014 — 2015
Annual Report (Attachment D) and submitted a more detailed FY 15 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.
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:
Description
Exhibit A - Performance Standards / Marketing Goals Report for FY 15 and FY 16
Exhibit B - NBCo Marketing Plan
Exhibit C - Visit Newport Beach FY 15 and FY 16 Budgets
Exhibit D - NBTBID -FY 15 Annual Report
Exhibit E - NBTBID FY 15 Budget
EXHIBIT A
W ort
ACH
& COMPANY
Visit Newport Beach Inc. Leisure Goals FY 2015 -FY 2016
FY 12/13
Actuals
i
M
..
FY 15/16
Goals Pr
ad
-
Unique Visitors
632,133
695,000
775,000
852,500
Web Visits
778,794
856,000
964,000
1,060,400
Total Pageviews
2,194,511
2,413,000
2,800,000
3,080,000
Pages Per View
3.0
3.4
3.25
3.50
Facebook Followers
39,700
43,600
90,000
110,000
Twitter
Followers
11,745
12,900
18,500
23,000
YouTube Followers
48,763
53,600
68,000
80,000
Total Ad Impressions
120,911,466
126,957,000
139,652,700
153,617,970
Online AD Clicks Visits to
Site
239,054
251,000
276,100
303,710
Visitors Guide
100,000
100,000
100,000
100,000
Spring /Summer
N/A
70,000
70,000
70,000
Fall /Winter
N/A
30,000
30,000
30,000
Maps
100,000
10,000
10,000
10,000
Calendar
of Events
N/A
5,000
5,000
5,000
Media Pitches Out
266
1,000
1,200
1,500
Partner Leads
62
350
500
750
AD Equivalency
$4,391,591
$7,000,000
$9,00,000
$11,000,000
Print Circulation
34,091,384
555,000,000
700,000,000
900,000,000
Unique Visitors
212,167,607
436,000,000
500,000,000
750,000,000
Impressions
2,315,876,469
5,000,000,000
7,000,000,000
10,000,000,000
Total Media
Assists
186
205
250
300
Domestic Media
Destinations Visits
50
80
100
125
FY 12/13
Actuals
FY 13/14
Goals
FY14/15
Goals
FY 15/16
Goals
Community Partner
Business
310
400
500
525
Wholesaler /Agency Reps
Trained
32
60
63
66
Familiarization
Tours
N/A
8
3
8
Wholesaler /Agency Reps
Trained
23
64
67
70
Familiarization
Tours
N/A
3
3
3
Wholesaler /Agency Reps
Trained
N/A
31
35
37
Familiarization
Tours
N/A
5
10
11
MARKETING PLAN
2014/2015 • 2015/2016
!t
i
t
� TABLE
Newport Beach & Company
Mission Statement and
Growth Opportunities
Objectives and Strategies
Celebrate Newport Beach
Visit Newport Beach - Leisure
Mission Statement and
Growth Opportunities
Research Highlights
Objectives and Strategies
Goals
Budget
Enterprise Newport Beach
Balboa Village
03 Mission Statement and
05 Growth Opportunities
06 Research Highlights
Objectives and Strategies
Goals
Budget
11
13
37
40
42
Visit Newport Beach Conference Sales
Mission Statement and
Growth Opportunities 43
Research Highlights 45
Objectives and Strategies 46
Budget 48
Dine Newport Beach
Mission Statement and
Growth Opportunities
49
Research Highlights
51
Objectives and Strategies
51
Goals
57
Budget
58
Newport Beach TV
Mission Statement and
Growth Opportunities
Research Highlights
Objectives and Strategies
Goals
Budget
Appendix
Sources
Staff
0
59
61
62
64
64
65
67
67
68
68
69
70
NEWPORT
BEACH & IR"
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
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
complementary story, Newport Beach & ideas can develop and be best used for
Company strengthens all of its partners, the benefit of its partners, Newport
drives new revenue to the city and
enhances its overall vibrancy.
Vision
Newport Beach & Company aspires to
be the national model for outstanding
integrated communitymarketing 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.
Beach & Company's team is a passionate
steward for the Newport Beach brand.
It is resourceful in creating meaningful
marketing programs and services and
setting the standard for outstanding
destination leadership.
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G,�B'EACH
& COMPANY
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"Newport Beach &
Company aspires
to be the national
model for outstanding
integrated community
marketing and
brand leadership."
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Objectives
Enhance and support all Newport
Beach & Company efforts by providing
consistent, ethical, and transparent
policies in the financial, human resources,
and technological operations.
Strategies
Professional Development
Professional development is important
to Newport Beach & Company for
the purpose of staff education and
development especially since the team
is now managing projects for a variety
of business units. The purpose of
encouraging staff to stay up -to -date
on training in their field is to improve
the performance of our team and keep
Newport Beach on the cutting edge of
what is happening in all areas. Professional
development promotes the growth of
individuals to strengthen their skills
used on the job and in our community.
Professional development also provides
the opportunity to develop a sense of
purpose, learn best practices, broaden a
positive perception of our organization,
network with those in our industry, and
increase the capacity to gain knowledge
and mastery of techniques.
Technology Infrastructure & Support
The technology infrastructure and support
is a critical component of the existence
of Newport Beach & Company. The
technology infrastructure includes the
hardware, software, communications
platforms, database management to
ensure the organization is optimized for
peak performance, management and
security. The infrastructure and support
includes contingency arrangements and
direction for acquisition of technology
resources. It considers changes in the
competitive environment, economies
of scale for information systems
staffing and investments, and improved
interoperability of platforms and
applications.
Newport Beach & Company will continue
to seek out open source platforms, such
as our Content Management System
HS
for our websites, which use WordPress
software. Additionally, further depth to
our Customer Relations Management
tools to expand the organization and each
business unit managed within it
Newport Beach & Company will also
utilize strategic partnerships with vendor
and service providers that will allow
pinpoint accuracies and controlled
cost variables to ensure as we grow we
best manage tools (both hardware and
software) that will benefit not just one but
all parts of the overall organization.
Operations
The operation of Newport Beach &
Company is best visualized in this
schematic framework to indicate how we
carry out all of the business functions.
The Brand Marketing Team is where all of
the marketing work is carried out for each
of the business units.
Within the Brand Marketing Team, the
following areas execute specific roles and
responsibilities.
Destination Marketing
Marketing, Sales
Marketing Sales,
Marketing, Sales
Sales and Services
and Services
Services and
and Services
• Meeting Planners
• Residents
Operations
• Residents
• Visitors
• Visitors
• Select Event
• Visitors
Execution
• Special Events
• Community Events
• New Event
Development
• Sports Support
Marketing, Sales
and Services
• BID
Commmunications
•
3213 Support
• Business. Retention
u
The EVP & CMO maintains
relationships with all of the outside
entities associated with each business
unit. She provides the strategic
direction of the Marketing Team and
provides the vision and metrics to
ensure the projects are a success.
VP of Marketing Development ensures
that all projects are managed, logged
and tracked and then distributed
to the appropriate members of the
Marketing Team.
The Marketing Team consists of:
Branding & Collateral
Online & Social Media
Advertising & Promotions
Public Relations & Communications
International Marketing
Community Relations
Strategic Partnerships & Events
Preferred Month of Event
If traveling to Newport Beach specifically
to attend a special festival or event,
survey respondents would prefer the
event to be held in the summer months of
June (32.6 %), July (28.9 %) and August
(24.2 %). These results were similar
across all markets studied.
Celebrate Newport Beach
Research Highlights
Southern California is home to scenic
spaces, warm weather and a unique
melting pot of rich cultures, all of which
are important components in various
crowd drawing events. Music and art
festivals have exponentially grown in
popularity, especially among young
travelers. A mash of warm weather,
loud music, and local cultural offerings
make up the quintessential music festival.
These festivals have major economic
impacts on local economies. According to
SmartAsset.com one music festival held
at the Los Angeles Memorial Coliseum in
2010 generated $42 million over two days
and supported over 1400 full-time jobs.
Another big draw for day trippers and
overnight visitors alike are food and drink
January
February
March
April
May
June
July
August
September
October
November
December
festivals (Source: http: //w .smartasset.
com/blog/economics -of /the- economics-
of- electronic- dance- music - festivals /).
Food festivals are also increasing in
popularity. Fodor's Travel states that
the best way to "experience the soul of
a destination is through its food' Many
modem travelers are looking for a
vibrant social atmosphere, such as food
festivals, to house food experiences they
hunger for, add local culinary flair that is
unique to your region and you will get an
epicurean experience that will draw food -
centric travelers from miles away.
Preferred Month of Event
—1 5.3%
"I 3.7%
.6%
0% 10% 20% 30% 40%
Source: Destination Analysts, Inc.
Interest in Event Concepts
Among the three different event concepts
tested (food- related event, boat parade
spectacular, and Christmas celebration),
a food - related event would be of most
interest to potential Newport Beach
visitors, reported by 57.9 percent who
consider this concept to be "Interesting"
or "Very interesting." Nevertheless, there
is also a significant degree of interest in
the other concepts tested —a boat parade
spectacular (47.4%) and Christmas
celebration (42.2%) —each considered to
be Interesting" or "Very interesting" by
40 percent or more of survey respondents.
Objectives
1. Curate signature "brand defining"
events to see full potential
2. Provide the organizational
fundraising efforts for signature
events
3. Market these signature events with
Newport Beach and Co .'s brand
marketing team to further the
Newport Beach brand
4. Work with area Business
Improvement Districts, such as the
Restaurant Association, Corona del
Mar or Balboa Village, to develop
signature events that promote those
neighborhoods or businesses
5. Develop key strategic partnerships
to support Newport Beach & Co.'s
marketing and sales initiatives, as
well as provide additional revenue
to provide enhanced elements to the
signature event
Interest in Event Concepts
Interesting Very Interesting
Food - related (citywide 37.9% 20.0%
fine dining event)
Boat parade spectacular
(multi -day evening 31.3% 16.2%
parades of colorfully lit
boats in the harbor)
Christmas celebration
(ice rinks, tobogganing, 26.7% 15.6%
Christmas fun)
0%
Source: Destination Anal ,I,, Inc.
Strategic Partnerships
Research & Plamring
• Working with IEG to analyze
the assets while comparing and
contrasting against like properties
• Compile packages based on
activation strategies
• Compile a list of industries that fit the
brand of Newport Beach
Lead Generation
• Local businesses
• Large companies that have a presence
in Newport Beach
Awareness & Brand Management
• Conduct personal meetings
• Attend community and
county events
• Partnerwith other community events
to gain awareness
20% 40% 60%
Strategic Partnership
Marketing Material
• Brochure
Email ready deck
Proposal Template
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Technology
• Investigating the ability to use a
section of Customer Relationship
Management for prospect tracking
Strategic Partner Experience
• Design an experience surrounding an
existing event to invite prospects to
enjoy the city and build awareness of
the campaign
Provide a proposal that reflects the
Newport Beach brand and activation
ideas that meet our brand promise
u
Website
• Celebrate Newport Beach will create
a basic website that will focus around
the key events and provide extra
Search Engine Optimization (SEO)
keyword indexing to help dominate
the search results listings and
supplement VisitNewportBeach.com
as another consumer gateway.
Focus will be on the following
attributes:
• Text -rich copy optimized for targeted
Newport Beach Events search terms
• Vivid imagery
• Responsive design to ensure complete
effectiveness and translation among
any device, mobile or desktop
• Complete calendar of events linking
to detail pages on the Visit Newport
Beach site
• Cross - linked promotions for other
business units (Dine Newport Beach,
Enterprise Newport Beach, Newport
Beach TV)
• Ability to embed promotional videos
• Ability to sign up for event -based
email news and info alerts
• Build on open source platform:
WordPress
• Social Media Links back to the main
social channels
Second phase will allow transactional
purchases for event ticketing produced
by Newport Beach & Co. and selected
partner events
All events will be promoted in detail
also on the VisitNewportBeach.com
website with full details, event ticketing
purchasing (if available) and will feed
into the homepage and event calendar.
Additionally we will promote events
with Search Engine Marketing (SEM) to
target paid search ads on Google, Yahoo
and Bing. Focus will get out in prior
months and target high volume search
keywords and terms.
Community Events
Research & Planning
. Looking at similar events around the
country to compare and contrast
• Compiling a list of companies that
support similar events
Awareness & Brand Management
• Access to all marketing and media
assets
• Liaise with event committees to
ensure quality of events meets brand
promise
• Establish what the purpose of the
event is and how it fits into the
Newport Beach brand
• Work with partners that meet the
brand promise
Technology
• Work with partners to ensure that
their online registration process is
easily accessible and meets our brand
standards. Suggest alternatives if it
does not.
Event Pre - Promotion
. Access to all marketing and
media assets
Attendee Experience
• Liaise with event committees
to ensure event elements meet
brand standards
Visit Newport Beach Inc. Events
Research & Planning
. Annual partner survey to see if we are
providing value added content
• Investigate market trends to compile
a list of content ideas for future events
Awareness & Brand Management
Access to all marketing and media assets
Work with partners that meet the
brand promise
Community Relationships
. Attend community and county events
to connect with partners
Partner Experience
• Provide unique entertainment to
attract partners
• Execute effective registration and
check -in process
• Provide a calendar of events at the
start of the fiscal year
Technology
. Provide user - friendly registration
process
Goals
Strategic partnerships will provide
support for Newport Beach & Company
by alleviating the budget, enhancing
outreach of the brand to more markets,
and elevating the signature events in
the city to be in fine with the Newport
Beach brand. NBC partners will
benefit from theses efforts and in turn
increase economic vibrancy.
EXECUTIVE COMMITTEE
CHAIR: DEBBIE SNAVELY
VICE CHAIR: ANDREW THEODOROU
SECRETARY: LINDA M. BEIMFOHR
TREASURER: DANIEL KUPERSCHMID
MEMBER AT LARGE: CANDACE BISCONTE
MEMBER AT LARGE: HOMER BLUDAU
CITY DELEGATE: DENNIS O'NEIL
BOARD OF DIRECTORS
CHAIR: DEBBIE SNAVELY
NEWPORT BEACH MARRIOTT
HOTEL & SPA
BRION AMENDT, NEWPORT
CHANNEL INN
KANDEE ANDERSON NEWPORT
BEACH MARRIOTT BAYVIEW
CRAIG BATLEY
BURR WHITE REALTY
LINDA M. BEIMFOHR
HORNBLOWER CRUISES
& EVENTS
CANDACE BISCONTE
ACCESS DESTINATION SERVICES
HOMER BLUDAU
FORMER CITY MANAGER
ANNIKA CHASE
DISNEYLAND RESORT
NEWPORT BEACH MARRIOTT HOTEL
NEWPORT DUNES WATERFRONT RES
HORNBLOWER CRUISES & EVENTS
HYATT REGENCY NEWPORT BEACH
ACCESS DESTINATION SERVICES
FORMER CITY MANAGER
CITY OF NEWPORT BEACH
SAM EL -RABAA
BALBOA BAY RESORT
DIETER HISSIN
ISLAND HOTEL NEWPORT BEACH
RUSS KLINE AMERICAN EXPRESS
KARL KRUGER FAIRMONT
NEWPORT BEACH
DANIEL KUPERSCHMID, HYATT
REGENCY NEWPORT BEACH
GIUSEPPE LAMA
THE RESORT AT PELICAN HILL
ROBERT LECK RADISSON HOTEL
NEWPORT BEACH
DAN MATUSIEWICZ
FINANCE DIRECTOR,
CITY OF NEWPORT BEACH
CAROL MCDERMOTT
GOVERNMENT SOLUTIONS
DENNIS O'NEIL
CITY OF NEWPORT BEACH
TOM POLLACK EXPLOROCEAN
NINA ROBINSON,
HOAG HOSPITAL
GREGG SCHWENK NEWPORT
BEACH FILM FESTIVAL
ANDREW THEODOROU
NEWPORT DUNES WATERFRONT
RESORT & MARINA
TANYA THOMAS
FASHION ISLAND
JIM WALKER BUNGALOW
RESTAURANT
10
BUDGET
NEWPORT BEACH & COMPANY
FORCASTED REVENUE
FY 2015
$2,274,785
FY 01
$2,350,725
OPERATING EXPENSES
$2,032,395
$2,103,335
ADVERTISING
$76,264
$88,764
COMMUNITY RELATIONS
$66,330
$51,330
COLLATERAL
$8,796
$6,296
ONLINE MARKETING /ADVERTISING
$16,000
$16,000
PRODUCTION COSTS
$75,000
$84,996
VISIT
NEWPORT
BEACH
LEISURE TRAVEL
Mission
As the City of Newport Beach's official
Destination Marketing Organization,
the mission of Visit Newport Beach
Inc. is to partner with the tourism and
hospitality industry by protecting and
nurturing the destination brand and to
deliver additional spending by leisure
and conference visitors, leading to
enhanced community economic vitality
and quality of life.
� w
VISIT vQl"t
ACH
CALIFORNIA
it
"...partner with
the tourism and
hospitality industry
by protecting and
nurturing the
destination brand..."
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Research Highlights
The National Economic Climate:
Continued Moderate Growth
As this years marketing plan takes
shape, the nation's economy continues
to move forward putting further behind
it the troubles of the Great Recession.
Still, the economic fortunes of and
outlook for the nation are mixed and
progress has been slow. Approximately
five years into the economic expansion
that followed the financial crisis in
2008, the recovery has indeed made
significant progress. In the views
of most economic forecasters, this
measured growth will continue through
2014.
Several indicators of this progression
include:
• Since 2008, more than 8 million non-
farm jobs have been added, nearly the
same number as lost in the recession.
Accordingly, the unemployment rate,
at 6.7 percent, has fallen three- tenths
of a point since 2013. More expansive
measures of unemployment that
include workers marginally attached
to the labor force and those working
part time have improved more than
the overall unemployment rate. The
labor force participation rate, which
had for some time been falling, has
begun to move upwards this year.
Projections from the Federal Reserve
Bank see the unemployment rate at
the end of 2016 is 5.2 to 5.6 percent,
nearly what is typically seen as full
employment levels.
Inflation also seems to be tamed.
As measured by the price index for
personal consumption expenditures,
inflation has slowed from an annual
rate of about 2.5 percent in early 2012.
Manufacturing output has also nearly
returned to its pre- recession peak
and housing markets are showing
life. Despite the effects of unusually
challenging winter weather, GDP
growth for the rest of the year is
expected to be moderate and sustained.
Overall annual economic output is on
track to grow by at least 2.7% or more.
The gains will likely come as business
and consumer confidence strengthen,
and Europe begins to emerge from its
difficulties. A sample of some indicative
forecasts includes:
• The Federal Reserve Bank believes that
the outlook is mixed, and growth in
the nation's GDP will be around 3.0
percent in 2014.
• The UCLA Anderson Forecast says
the nation's gross domestic product is
poised to surpass the 2 percent annual
growth rate of the past four years and
reach 3.3 percent by 2015, and growth
of 3.0% by 2016.
• Oxford Economics expects GDP
growth of 3.0 percent in 2014.
If these forecasters are correct about the
near term economic climate, it suggests
that another strong performance by the
national tourism industry is likely.
The National Tourism Industry:
Continued Strength
As we move deeper in 2014 and beyond,
America's travel industry is expected
to experience healthy growth and be a
continued source of significant strength
to the overall economy. The U.S.
Travel Association (USTA) forecasts
that domestic person trips will grow
by 1.6 percent this year, followed
by a 1.7 percent expansion in 2015.
Furthermore, international visitation
is expected to grow by 5.4 percent
in 2014, followed by 5.5 percent in
2015. This growth in visitor volume is
expected to create substantial growth
in travel- related spending. In the next
two years, overall travel expenditures
are forecasted to grow by 4.5 and 5.3
H13
percent, respectively. This spending
will be punctuated by large increases in
spending by international visitors of 7.3
percent this year.
A similarly important projection is that
overall inflation in the costs of travel is
expected to be moderate in the coming
year. The U.S. Travel Association
predicts that its Travel Price Index will
increase by a modest 3.0 percent in
2014. Inflation in domestic travel prices
is expected to increase to 3.8 percent
in 2015. If it comes to fruition, these
moderate price fluctuations will be
good news for an industry that has been
battered in recent years by rapid and
unexpected changes in fuel prices.
H14
,Real GDP ($Billions)•
Unemployment Rate
Consumer Price Price Index (CPI)"
Travel Price Index (TPI)"
Total Travel Expenditures in U.S. (s
Billions)
U.S. Residents
International Visitors-
Total International Visitors to the
U.S. (Millions)
Overseas Arrivals the U.S. (Millions) _
Total Domestic Person
Trips-"'(Millions)
Business
Leisure
14,833.6 14,417.9 14,779.4 15,052.4 15,470.7 15,047.3 16,759.7 17,625.1 18,514.1
5.8
9.3
9.6
8.9
81
7.6
7.5
6.7
5.9
215.3
214.6
218.1
224.9
229.3
233.1
237.9
243.1
248.2
257.7
241.5 _
250,7
266.9
_ 273.0
279.6
288.8_
296.6
306.1
772.5
699.8
747.4
812.7
855.4
894.3
940.1
984.9
1,033.4
662.1
605.6
643.9
696.5
726.9
753.7
788.8
824.9
863.8
110A
94.2
103.5
116.1
128.6
140.7 _
151.4
_ 160.0
169.6
57.9 55 60 62.7 67 69.6 73.4 77.5 80.7
25.3 23.8 26.4 27.9 29.8 31..0_ 32.8 35.0 36.7
1,964.90 1,900.10 1,963.70 1,997.5 2,030.3 2,054.7
461.1 434.3 446.4 447.0 449.0 452.0
1,503.80 1,465.8 1,517.3 _1,550.5 1,581.3 1,602.7
2,088.8 2,127.0 2,159.3
456.3 462.0 4655.0
1,632.5 1,665.0 1,694.3
Real GDP`
Consumer Price Index (CPq•'
Travel Price Index (TPI)"
-0.3%
3.8%
5.6%
-2.8%
-0.3%
-6.3%
2.5%
1.6%
3.8%
1.8%
3.1%
6.5%
2.8%
2.1%
2.3%
3.1%
1.5%
2.4%
5.1%
2.0%
3.3%
52%
2.2%
2.7%
5.0%
2.1%
3.2%
Total Travel Expenditures in U.S.
4.7%
_
-9.4%
6.8%
8.7%
5.3%
4.5%
5.1%
4.8%
4.9%
U.S. Residents
3.4%
-8.5%
6.3%
8.2%
4.4%
3.7%
4.7%
4.6%
4.7%
International Visitors'
13.4%
-14.7%
_9.9%
12.2%
10.7%
9.4%
_ 7.6%
_ 5.7%
6.0%
_
Total International Visito to the U.S.
rs
3.5%
-5.2%
9.2%
4.5%
6.8%
4.0%
5.4%
5.7%
4.1%
'Overseas Arrivals the U.S.
6.1
%6.3%
11.0%
5.8%
6.7%
4.3%
5.5%
6_9%
4.8%
(Total Domestic Person Trips" "*
-2.0%
-3.3%
3.3%
1.7%
_
1.6%
_
1.2%
1.7%
1.8%
1.5%
Business
-6.7%
-5.8%
2.8%
0.1%
0.5%
0.7%
1.0%
1.2%
0.7%
Leisure
-0.4%
-2.5%
3.5%
2.2%
2.0%
1.4%
1.9%
2.0%
1.8%
Source: U. S. Travel Association Travel Forecasts- Updated Nov. 25, 2013 *Based on chained 2009 dollars. * *1982 - -84 =100
** *Excludes international visitors'spending on traveling to the U.S. on U.S. flag carriers, and other misc. transportation. * ** *One
person trip of 50 miles or more, one way, away from home or including one or more nights away from home. Sources: U.S. Travel
Association's Travel Forecast Model, BLS, Department of Labor, OTTI, BEA, Department of Commerce.
Californias Economic Outlook-
Slow yet Steady Growth
California's economy in many ways
is expected to mirror national trends.
The UCLA Anderson forecast for the
California economy calls for steady
economic growth in the current year,
with gradually accelerating growth
in the following two years. Real
personal income growth is forecast
to be 3.1 percent in 2014, followed by
3.8 percent in 2015 and 3.7 percent in
2016. Unemployment in California is
forecasted to fall through 2014 and is
expected to be 7.8 percent this year,
followed by 6.9 percent in 2015 and 6.0
percent in 2016, with the rate going as
low as 5.7 percent by the end of 2016.
International Visitation: A Rapidly
Evolving Force
The largest feeder markets for the
United States are Canada and Mexico.
When combined, these neighboring
countries contribute nearly half of all
visitors to the United States. Still, many
countries contribute significant numbers
of visitors each year. The table on the
next page shows the forecast of visitation
of the top 20 international markets
to the United States from the Federal
government. The United Kingdom,
Japan, Brazil and Germany are the
country's largest overseas contributors
of visitor traffic. Brazil has emerged to
now be the fifth largest feeder market,
contributing 2.1 million visitors to the
United States in 2013. This marks a 15.0
percent growth rate from 2012. China
is another rapidly emerging market,
contributing 1.8 million visitors in 2013,
an astonishing 22.6 percent growth rate
from 2012.
H15
2 MEXICO
14,343
1.0%
14.630
2%
14,922
2%
15,221
2%
15,525
2%
15.836
2%
3
3,835
1.9%
1,950
3%
4,069
3%
4,191
3%
4,317
3%
4,446
3%
KINGDOM
4 JAPAN
3,730
0.9%
3,768
1%
3,805
1%
3.843
1%
3,882
1%
3,921
1%
5 BRAZIL
2,060
15.0%
2,246
9%
2,493
11%
2,692
8%
2,881
7%
3,082
7%
6 GERMANY
1,916
22%
1,974
3%
2,033
3%
2,074
2%
2,115
2%
2,136
1%
7 CHINA
1,808
22.6%
2,108
21%
2,630
19%
3,098
19%
3,655
18%
4,313
18%
8 FRANCE
1,505
3.4%
1,565
4%
1,612
3%
1,644
2%
1,677
2%
1,710
2%
9 KOREA
1,360
83%
1,455
7%
1,528
5%
1,604
S%
1,668
4%
1,735
4%
10 AUSTRALIA
1,205
7.4%
1,265
5%
1,329
5%
1,395
5%
1,451
4%
1,509
4%
11 INDIA
859
18.6%
962
12%
1,068
11%
1.164
9%
1,246
7%
1,320
6%
12 ITALY
839
0.9%
856
2%
881
3%
099
2%
917
2%
926
1%
13 VENEZUELA
788
16.8%
827
5%
869
5%
904
4%
940
4%
977
4%
14 COLOMBIA
748
241%
868
16%
963
11%
1.031
7%
1,103
7%
1.169
6%
15 ARGENTINA
686
11.7%
748
9%
823
10%
888
8%
951
7%
1,017
7%
16 SPAIN
620
2.1%
638
3%
651
2%
664
2%
671
1%
678
1%
17 NETHERLANDS
589
-0.4%
595
1%
613
3%
625
2%
632
1%
632
0%
18 SWEDEN
447
7.8%
510
7%
530
4%
546
3%
563
3%
580
3%
19 SY.TZWEIAND
473
-0.7%
483
2%
492
2%
502
2%
512
2%
522
2%
20 TAIWAN !
385
32.5%
442
15%
486
10%
516
6%
552
7%
585
6%
Source: Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce
Source: U.S. Department of Commerce, ITA, National Travel and Tourism Office, Secretario de Turismo (Mexico), Statistics
Canada- Spring 2014 Travel Forecast
Nevertheless, future prospects for
international visitation are indeed
bright. The U.S. Department of
Commerce Office of Travel & Tourism
Industries (OTTI) both tracks and
forecasts levels of visitation to the
United States. Their most recent
forecasts predict an increase of 3.5
percent of international visitation
in 2014.
This year's Travel Forecast represents
a slight upward revision in each of
the five years of the spring forecast
period. The upward revisions begin
in year 2014 and ultimately produce
an upward adjustment of nearly one
million additional total growth over the
2014 -2018 period. We note this change
as it is another indication of the growing
confidence shown by economists in the
near term prospects for the economy.
Domestic Traveler Sentiment:
Enthusiasm for Travel is high
Americans appear to be in the mood to
travel once again. Two recent traveler
sentiment tracking surveys show that
domestic travelers are enthusiastic about
increasing both the number of trips and
thew travel budgets in 2015.
Results from Destination Analysts,
Ines January 2014 edition of The State
H16
of the American Traveler- survey
show travelers are once again feeling
optimistic about their upcoming
leisure trips. in January of this year,
the proportion of leisure travelers
planning to travel more increased to
32.3 percent, up from 30.2 percent six
months ago. Spending expectations are
also high, with 32.5 percent expecting
to increase their leisure travel spending
in the coming year, a slight rise from the
previous survey conducted six months
prior. Improved financial outlooks
and moderate gas prices appear to
be driving these positive results. In
the latest survey, significantly fewer
travelers reported that high gas prices
had kept them from traveling more than
they would have otherwise preferred in
the past 12 months. Only 32.9 percent
said that high gasoline prices have had
a similar effect, down from 39.5 percent
in July 2013.
In the next 12 months, do you expect to travel more or less
for leisure than you did in the most recent 12 month period?
X10.9%
Jan 14 IIIIIIIIIIIINIM d 56.9%
- 32.3%
11.9%
Jul 13 57.9%
-30.2%
11.9% • Less
Jar, 13 53.8% • Same
34.296 •More
16.6%
Jul 12 553%
- 27.5%
12.2%
Jan 12 55.1%
32.7%
-23.4%
J.111 49.8%
- 26.9%
-15.0%
Jan 11 53.5%
-31.6%
Source: Destination Analysts, Inc.
In the next 12 months, do you expect to spend more or less for
leisure travel than you did in the most recent 12 month period?
13.7%
Jan 14 53.8%
32.5%
14.5%
Jul 13 54.4%
1111111111111111111131.1% ■Less
-14.8% a Same
Jan 13 33.4% 51.7% 0 More
-19.4%
Jul 12 53.7%
26.9%
- 14.3%
Jan 12 53.2%
32.5%
25.1%
Jul 11 47.9%
27.1%
- 18.3%
Jan 11 48.6%
33.1 %
0% 10% 20% 30% 40%, 50% 60%
Source: Destination Analysts, Inc.
Interest in Destination Types
The chart at right shows the percentage
of respondents `Interested" or "Very
interested" in various types of
destinations far leisure trips.7hese
travelers expressed the highest degree of
interest in resort destinations (70.4 966) like
Newport Beach.
Importance of
Destination Attributes in
Destination Decision
Finances are the most commonly
considered factors when selecting
destinations for a leisure trip. 86.4
percent of respondents reported
affordability to be Important' or "Very
important' in the destination selection
process, followed by the cost ofgetting
to a destination (84.4 %). A destination's
safety (83.4 %) and scenic beauty
(83.3 %) are also highly considered
attributes when selecting
a leisure destination.
Interest in Destination Types
Interested Very Interested
Resort destination
Major urban
destinations
Smaller urban/
boutique urban
Rural destinations
32.7%
3.0%
8.1
0% 20% 40% 60% 80%
Source: Destination Analysts, Inc.
Phoenix 43.6% Seattle 37.7%
Portland 40.3% Washington D.C. 35.8%
San Diego 40.2% Los Angeles 35.2%
Chicago 38.4% San Francisco 35.2%
New York 37.7% Sacramento 34.8%
Importance of Destination Attributes
Important Very Important
Affordability 33,4% 53.5%
Cost of getting there 37.9% 46.5 % -1
Safety 34.9% 48.5%
Scenic beauty 41.6% 41.8 %
Place for relaxation 43.1% _ _ 38B%
Overall ambiance & atmosphere 47.5% 34.3% I
Lots to see &do 44.0% 37.1%
Restaurants and cuisine 44.8% 28.7%
Hotels 42.9% 26.9%
Outdoor recreation 40.1% 24.1% 1
Historical attributes
42.1% 20.4%
Beaches 365% 23.9%
Arts& Cultural activities 36.6% _ 18.2%
Festivals and special events 37.8% 15.4% .
Cultural diversity 33.6% 16.1%
Shopping opportunities 301% 15.7%
Romantic ambiance 29.3% 15.1% C
Place for kids 17.6% 16.7 %
Nightlde and bars 20.6% 11.1%
Spas 18.1% 9,8%
0% 20% 40% 60% 80% 100%
Source: Destination Analysts, Inc.
H17
H18
California: Strong Tourism Demand
Drives Growth
California is an exceedingly popular
destination among both domestic and
international visitors. Its strong tourism
brand and vast array of attractive
destinations and attractions hold deep
appeal. Traveler surveys consistently
show that a significant proportion of
Americans are actively considering a
visit to the state. Similarly, Destination
Analysts found in its January 2014 The
State of the American Traveler survey
that 31.0 percent of travelers are likely to
visit California in the next three years.
The hotel industry's performance is
perhaps the most reliable indicator
of the travel industry's health, and
California's popularity has expressed
itself mightily in the current year
through strong demand in nearly every
metropolitan area. In 2013, the national
hotel occupancy rate stood at 58.4
percent, while California's was higher
at 67.2 percent. Nationally, the average
daily rate for hotel rooms was $107.77,
while California's was much higher at
$123.88 per room. Across California,
metropolitan areas performed extremely
well in 2013. Overall, revenue per
available room (RevPar) grew 11.4
percent in California, compared to 7.3
percent nationally.
In 2013, the top performing
metropolitan areas for RevPar growth
in California included Vallejo- Fairfield-
Vacaville ( +27.1%), Santa Rosa
( +25.2 %), San Francisco -San Mateo
( +19.7 %),. San Jose -Santa Cruz (18.1 %),
Santa Barbara -Santa Maria ( +16.5),
and Napa Valley ( +16.4 %). Nearby
Anaheim -Santa Ana recorded a 4.7
percent increase in occupancy and 6.3
percent growth in its average daily room
rate, resulting in a healthy 11.3 percent
increase in RevPar for the region.
Like much of the state, in Newport
Beach, occupancy, ADR and RevPar
were all up in 2014 over 2013.
Occupancy increased 12 percent to
73.4 percent in 2014. ADR increased
8.6 percent to $200.74 leading to a
21.6 -point RevPar increase to $147.25
from $121.10 in 2013.
Source: Smith Travel Research, Visit California Report, February 2014
Qcc
2014
Year
2013
to Date-
ADR
2014 2013
t
RevPar
2014
2013
Occ
Percent
ADR
Change
RevPAR
Room
Rev
Room
Avail
Room
Sold
United States
56.0
54.4
110.67
106.90
61.99
58.16
3.0
3.5
58.16
7.5
03
3:9
Pacific
64.2
61.8
136.13
128.42
87.335
79.30
3.9
6.0
10.1
10.7
0.6
4.5
California
66.3
63.4
130.67
122.29
86.64
77.53
4.6
6.8
11.8
12.5
0.7
5.3
Anaheim/ Santa Ana
(OC)
70.9
67.0
126.37
119.29
89.54
79.90
5.8
5.9
12.1
13.0
0.8
6.6
Los Angeles/ Long Beach
75.4
72.3
142.74
134.71
107.69
97.40
43
6.0
10.6
11.7
1.0
5.4
Riverside /San Bernardino
63.6
60.7
101.15
96.34
64.36
58.47
4.9
5.0
10.1
10.4
0.3
5.1
San Diego
San Francisco/ San
Mateo
67.7
75.4
65.1
71.0
,130.51
187.04
126.21
165.46
88.35
82.12
4.0
3.4
7.6
9.5
1.8
5.9
140.98 117.56
6.1 13.0 19.9 19.8 -0.1
6.0
San Jose/ Santa Cruz
69.3
66.8
� 148.42
132.11
102.89
88.22
3.8
12.3
16.6
17.5
0.7
4.6
California South /Central
53.4
50.8
75.05
42.18
38.16
5.0
53
10.5
10.4
-0.2
4.8
Califomia Central Coast
59.0
_79.03
54.3
128.03
121.36
75.55
65.88
8.7
5.5
143
15.0
0.3
9.0
Source: Smith Travel Research, Visit California Report, February 2014
H19
Year to Date -Feb 2014 vs Feb 2013
Source: Smith Travel Research, Visit Newport Beach Report, February 2014
Domestic visitation to California is
expected to grow throughout the
remainder of this year, and accelerate in
the next two years. Industry forecasts
prepared by Tourism Economics for
Visit California show the industry's
continued strong performance.
Overall, the number of domestic visits
to the state is forecasted to increase 2.6
percent this year, followed by growth
of 2.7 percent in 2015. According
to Tourism Economics, spending by
domestic visitors to California will also
increase from $112.8 billion to $119.4
billion this year. In 2015, domestic
visitor spending in California will
climb further to $127.6 billion, a 6.9
percent jump from the current year.
On top of these expected increases
from the domestic market, California is
expected to reap the benefits of rapidly
expanding international visitation.
Tourism Economics predicts
even faster growth in California's
international markets. This year, 5.0
percent more international visitors
are expected to visit the state than in
2013 and these visitors are anticipated
to spend $24.0 billion, an increase
of 8.1 percent from a year earlier.
In 2015, this growth is expected to
continue, with 5.1 percent growth in
international visitor volume and 10.1
percent increase in spending.
Total Visits
5.6%
2.8%
2.8%
22%
2.3%
2.4%
2.6%
Leisure Visits
4.9%
3.1%
2.9%
2.3%
2.4%
2.5%
2,7%
International
Total
%Change
9.0%
9.1%
3.3%
4.7%
5.0%
5.1%
i4%
Overseas
18.2%
10.5%
3.1%
5.1%
5.5%
5.7%
6.1%
Mexico
1.8%
8.5%
3.5%
4.4%
4.7%
4.8%
4.2%
Canada
10.0%
6.4%
3.6%
4.7%
4.7%
4.8%
4,2%
La,..
%Change
10.6%
9.1%
3.3%
4.2%
4.9%
5.6%
5,9%
Overseas
18.2%
10.5%
3.1%
4.4%
5.4%
6.3%
6,8%
Mexico
53%
8.5%
3.5%
4.1%
4.7%
5.3%
5.5%
Canada
10.0%
6.4%
3.6%
4.0%
4.1%
4.3%
4.2%
Total Fxpendtures(5
95,1
101.8
1061
112.8
119.4
127.6
137.5
billions)
%Change
8.4%
7.0%
4.8%
5.7%
5.9%
6.9%
7,7%
Domenic
78.1
82.8
86.4
90.6
95.4
1012
108.1
%Change
83%
6.1%
4.3%
4.8%
5.3%
6.1%
6.6%
International
17.0
19.0
20.3
22.2
24.0
26.4
29,4
%Change
8.9%
11.6%
7.0%
93%
8.1%
10.1%
11.3%
Source: Tourism Economics.
Historical
Sources: TATS Global (domestic);
CIC
Research, OTTI (international);
Dean Runyan (expenditures)
20
Economic Impact of Travel
2013p
to California
The travel industry is a vital part of
Californias state and local economies.
0.9. county 9.806
3.049
89.7
260
378
637
Los An ebs County 23.491
7.849
161.8
629
953
1.583
In Dean Runyan and Associates'
San Diego county 13.495
4,1$2
125.7
3W
507
616
California Travel Impacts by County,
The Deserts 5,987
1,593
63.1
114
250
364
yfiftum, 109A41
34,148.
MA
21792
4,339
7-1-3D-__
2013 Preliminary State dr Regional
Estimates report conducted for Visit
California, travel spending in California
in 2013 is estimated to be $109.6 billion,
Total Do-«tT °"I spending pemmnl
with a 3.2 percent increase from 2012.
Visitor 5pmding 85,8 91.3
at Deaomwn
83.2
88.6
94.8
98.8
101.9
Travel spending in the state also directly
Dither Tavel 6.6 6.8
6.1
6.5
7.0
7.4
7A
generated $34.1 billion in earnings and
Sunni �9 92.° 98.2
E9.z
9s.1
101,8
lob.z
109.6
$965,800 in employment.
visitor Spending by Type of Traveler Accommodadan(Siileon)
Hmevmoml 454 483
43.5
41.0
50.9
53.9
56.4
Spending of Californians visitors is
ftTm 3.0 3.1
26
2.6
2.8
2.9
2.9
Aground
allocated towards a variety of trip-
Public 0.6 0.6
0.5
0.5
0.6
0.6
0,6
related services and expenditures.
UmP9roune
According to Dean Runyan and
Pnvete Home 11.9 12.8
12.0
12.5
13.2
13A
13.5
Vacaron Homo 3,8 4.1
3.9
4.0
4.2
42
4.3
Associates, the bulk of visitor spending
D,Travel 21.1 224
20.6
21._8
2.32
23.9
24.3
in 2013 went towards food and
Visitor Spewing by Commodity P%ndu°d 486fbnl
_
beverage ($26.4 billion)
Accommodabons 153 16.6
14.2
15.1
16.4
17.8
19.3
services and
Food& Beverage 20.3 21.8
21.7
22.9
24.0
25.3
26.4
accommodations ($19.3 billion).
Senn°
Food Scores 27 3A
2.8
29
3.0
32
32
Grouts 15.4 17.8
13.5
15.5
17.9
18.1
17.6
Trensponutian &
Motor Fuel
Arts, Entertainment & 14.0 14.1
13.6
14.0
14.4
14.9
15.3
Recreation
Retail Sales 14.7 146
142
14.9
15A
15.9
16.2
Air Traaeponeuon 3.4 34
3.1
3.3
3.6
17
3.8
(vislwonlY)
Source: Dean Runyan
Orange County's Continued
Opportunity: Product Differentiation
& Brand Awareness
The atmosphere in which the
destination's FY 2014115 marketing
strategies will be executed is one of
some challenges but also of great
opportunity. Industry research suggests
that while Newport Beach is a premium
destination, there exists opportunities
for building brand awareness and
interest in visitation. This may be
especially important given the current
competitive tourism marketing
environment, in which Newport Beach
faces pressure from the state's many
attractive destinations.
In Destination Analysts' most recent
The State of the American Traveler
study, domestic leisure travelers
were asked to identify the California
destinations that they are likely to visit
in the next three years--as a measure
of general interest in visitation and
popularity. Not surprisingly, the state's
iconic cities ranked at the top of this list,
with San Francisco (25.3 %), Los Angeles
(23.9%) and San Diego (22.9 %) being
selected by the most survey respondents
as places they are likely to visit in the
next three years. Beyond these cities,
however, the picture becomes one
of many destinations with generally
H21
similar levels of traveler interest. Napa
Valley and its renowned wine country
stands out somewhat, selected by
approximately one in five travelers. 17.8
percent of American leisure travelers
surveyed are likely to visit Orange
County /Anaheim in the next three
years. It seems clear that for the greater
domestic markets, building a deeper
understanding of Newport Beach's
attributes and effectively focusing its
advertising and marketing efforts on the
most appropriate and lucrative visitor
segments is paramount.
Likelihood to Visit California Destinations in the Next Three Years
Visit in the Next Three Years
San Francisco —
Los Angeles —
San Diego 6,
Napa Valley
Orange County /Anaheim
Lake Tahoe area
Sonoma County
Santa Barbara County m
25.3%
23.9%
22.9%
19.6%
17.8%
16.2%
15.6%
13.6%
0% 5% 10% 15% 20% 25% 30%
Source: State of the American Traveler, Destination Analysts, Inc. January 2014
H22
International Travelers: Interest
in California
In the January 2014 edition of the State
of the International Traveler study,
Destination Analysts surveyed 12
countries and tested over 50 domestic
destinations for appeal and visitation
likelihood. While Destination Analysts
did not specifically test Orange
County, they did test eight California
destinations including Anaheim.
Considering all 12 countries tested,
nearly two- thirds of all internationally
oriented travelers (63.4 %) found
Anaheim to be at least "Somewhat
appealing" and just under half (44.8%)
found it to be either Appealing" or
"Extremely appealing." Anaheim
ranked third among the eight California
destinations tested and ranked eighth
overall out of over 50 destinations
nationwide.
Anaheim's strong international appeal is
not uniform across all countries. More
than 80 percent of respondents from
China and Mexico found Anaheim to be
at least somewhat appealing, but under
half from the United Kingdom and
Germany felt that way.
Internationally oriented travelers were
asked to indicate which destinations
they were likely to visit in the next five
years. Looking at just the California
destinations tested we see Los Angeles
and San Francisco, the major coastal
San Francisco
33.6%
27.6%
80.3%
Los Angeles
32.1%
27.6%
78.9%
Anaheim
23.6%
21.2%
63.4%
San Diego
22.9%
13.1%
57.1%
Lake Tahoe area
20.1%
9.1%
51.0%
Napa Valley
20.1%
10.2%
50.3%
Santa Barbra County
17.2%
8.7%
45.5%
Sonoma County
15.2%
7.0%
40.4%
China
33.3%
28.0%
Mexico
27.0%
43.4%
Brazil
25.5%
37.5%
South Korea
31.9%
19.0%
India
25.7%
25.4%
Australia
24.4%
19.9%
Canada
22.2%
16.8%
France
18.3%
13.60A
United
16.7%
11.8%
Kingdom
France
9.5%
Germany
15.4%
8.4%
Source for all: Destination Analysts, Inc.
international ports, with a strong lead
at just under half of all internationally
oriented travelers likely to visit. San
Diego and Anaheim make up the second
tier of California destinations at about
one in every five travelers likely to visit.
As might be expected, countries that
view Anaheim as most appealing are
also more likely to visit in the next five
years. Just under half of respondents
from China (44.9 %) and over one third
from Mexico (36.2 %) say they are likely
to visit Anaheim in the next five years.
However, only about one in every
twenty from Germany and the United
Kingdom are as likely to visit.
China
Los Angeles
47.2
San Francisco
41.7%
San Diego
20.0%
Anaheim
19.1%
Napa Valley
11.2%
Santa Barbara
10.2%
County
70.3%
Lake Tahoe Area
9.2%
Sonoma County
6.6%
China
44.9%
80.4%
Mexico
36.2%
80.2%
Brazil
23.4%
76.6%
India
20.8%
75.4%
Australia
20.4%
70.3%
South Korea
18.8%
62.9%
Japan
15.9%
55.6%
Canada
118%
52'00/.
Italy
12.8%
45.1%
France
9.5%
40.8%
Germany
53%
United
4.8%
Kingdom_
International Travelers: Experiences
of Interest
While Newport Beach may not be a top
of mind destination for international
travelers, it dearly has assets they desire.
In order to determine what types of
vacations internationally oriented
travelers were considering, Destination
Analysts asked how important each
of the following experiences would be
in terms of taking a trip to the United
States. More than 70 percent of all
internationally oriented travelers said
that visiting famous landmarks in
America and sightseeing in cities were
either "Important" or "Very Important."
Experiences that Newport Beach offers
are also popular, including relaxation,
beaches and resorts, scenic drives and
road trips, family fun and restaurants.
4r�Tj
Will
� -
famous or iconic American landmarks and
Sightseeing in cities
Relaxation
Visiting historical sights
Visit National Parks
Take scenic drives/ road trips
Museums
Visit beaches and resorts
Family fun
Visit small towns, villages and rural areas
Restaurants (authentic American cuisine/ regional
specialties)
Theme & amusement parks
Meet and interact with Americans
Visit friends or family that live in the U.S.
Shopping
Participate in nature or ecological tours
Festival and events
Take a cruise (ocean, river, etc.)
Visit wine countries/ go to wineries
Visit farms/ take agricultural tours
Live music performances
Restaurants (upscale, high - rated, fine dining)
Nightlife /partying
Visit breweries/ distilleries (beer, whiskey, eta)
Visit or tour university campuses
Casinos/gambling
Source: Destination Analysts, Inc
EL
WELCOME
TO
z B A 0-8
r�
37.6%
41.1%
35.4%
35.2%
36.1%
33.5%
32.6%
31.8%
27.6%
31.8%
30.7%
25.1%
26.7%
21.2%
24.7%
24.4%
24.9%
22.8%
20.2%
20.2%
20.0%
19.9%
18.5%
17.7%
14.6%
9.7%
EN
I
33.1%
28.9%
30.9%
26.9%
23.8%
20.9%
21.6%
21.5%
22.0%
17.0%
15.3%
18.7%
16.6%
20.7%
15.7%
14.8%
13.9%
14.2%
11.0%
10.7%
9.9%
9.6%
10.5%
9.2%
7.8%
5.8%
E►
H23
H24
The California Visitor
The demographic profile of California's
domestic traveler is straightforward.
They primarily reside in state (75.2 %),
are affluent (49.1% have an annual
household income over $75K), mature
(56.8% are over 45 years old), married
(68.4%) and typically White or Asian.
Over one in four of these travelers have
children living at home (26.4%).
Travel in California generates significant
tax revenues for cities across the state,
and Newport Beach benefits greatly
from these revenues flowing
into its coffers. The table below
shows Transient Occupancy Tax
(TOT) revenues collected by a
number of cities and communities
within Orange County. In this
comparison, the city of Anaheim
far surpasses all Orange County
cities, with $101 million collected
in 2013. Although Newport Beach
falls second to Anaheim with
$16.4 million collected in 2013, . it
does collect more TOT revenues
than the rest of the Orange County
cities. While seeing a dip in 2013, the
overall growth trend shown here is
significant, and illustrates the growing
importance of the tourism to the city's
economic vitality. It should be noted
that TOT collections are only one
portion of taxes collected by the city
that emerge from visitation. Other
revenues include sales taxes, property
taxes, tickets and fees and many other
indirect revenues generated
by tourism.
Domestic
Trip
Top Feeder Markets
an Travis
Be avior '
Household Income
California
75.5%
Less than $25,000
12.8%
Arizona
3.1%
$25,000450,000
20.3%
Nevada
2.4%
$50,000 - 575,000
17.7%
Texas
1.9%
$75,000- S1_00,000
313%
Washington
1.6%
Ethnicity
75,767.2
New York
1.2%
White
78.5%
Oregon
1.2%
Black/African American
3.7%
Utah
1.0%
Asian or Pacific Islander
9.5%
Virginia
1.0%
American Indian, Aleut Eskimo
0.7%
Florida
0.9%
Other
4.7%
Marital Status
Dana Point
No Answer
2.8%
Now Married
58.4%
Travel Party Composition
8,303.8
Net- with Children under 18
26.4%
Travel Party Sae
2.5
Age
12,612.8
'Household Size per Reporting Travel
2.0
11,696.7
12,320.3
member
Huntington Beach
18-20
1.9%
Trip Spending
5,420.4
21 -24
4.3%
Expenditure per person /day
5106
2534
19.2%
Expenditure per person (trip IeveO
$307
35-44
17.8%
Total Expenditure at Trip Level
5614
45.54
19.6%
10.0%
8,611.0
8,741.4
7,857.0
Source: TNS TravelsAmerica 2012
55-64
18.2%
8,537.1
Newport Beach
65+
19.0%
13,562.4
13,585.3
Orange
County Transient
Occupancy
Rate
2007 2008 2009 2010 2011
2012 2013
Anaheim
15.0%
8,255.1
86,035.9
79,053.3
75,767.2
82,622.0
88,714.6
101,030.0
Buena Park
12.0%
4,684.2
4,663.3
3,909.0
3,577.8
3,734.0
3,961.0
4,391.7
Costa Mesa
8.0%
5,900.0
5,791.0
4,680.0
4,270.0
5,349.0
6,511.5
7259'3
Dana Point
10.0%
10,852.2
11,298.5
9,098.3
7,221.1
8,303.8
9,213.4
10,086.4
Garden Grove
14.5%
12,200.0
12,612.8
11,270.0
10,159.0
11,696.7
12,320.3
14,446.0
Huntington Beach
10.0%
6,573.5
6,688.5
5,420.4
5,810.4
6,470.5
7,203.5
74,000.0
Irvine
8.0%
9,395.9
9,108.0
8,042.5
7,268.0
8,293.6
8,488.6
9,005.0
Laguna Beach
10.0%
8,611.0
8,741.4
7,857.0
6,759.4
7,073.3
7,904.6
8,537.1
Newport Beach
10.0%
13,133.3
13,562.4
13,585.3
12,541.6
15,854.7
17,976.1
16,476.0
Orange
10.0%
3,241.0
3,220.2
2,760.7
2,729.1
3,168.5
3,442.9
3,818.7
Santa Ana
11.0%
7,331.1
7,713.8
6,388.4
5,341.0
5,970.3
6,229.0
6,612.2
Perceptions of
Newport Beach
In another open -ended question,
respondents were asked to write in the
first three images, words or phrases that
come to mind when thinking of Newport
Beach. Newport Beach is most closely
associated with beaches (51.3 %), ocean
and coast (26.9 %), and great weather
(22.5 %). The vast majority of associations
with Newport Beach are positive.
Source. Destination Analysts, Inc.
Familiarity with
Newport Beach
One in five respondents overall feel they
are Familiar' or "Very familiar" with
the attractions and activities in Newport
Beach (20.2 %). This is strongest in the
nearby markets of Los Angeles (41.3 %)
and San Diego (27.9 %). Nevertheless,
there is clearly an important opportunity
to educate travelers about the destination
and drive demand. Nearly 40 percent
report being "Unfamiliar" or "Completely
unfamiliar" with Newport Beach's
offerings as a travel destination.
Source. Destination Analysts, Inc.
Los Angeles
41.3%
-8.0%
Sacramento
17.1%
San Diego
27.9%
Phoenix
15.4%
San Francisco
22.6%
10.3%
Seattle
14.2%
New York 21.3% Portland 13.2%
Chicago 18.4% Washington D.C. 11.3%
Familiarity with Newport Beach
-8.0%
Very familiar
Familiar
_12.2%
Slightly familiar
20.7%
10.3%
Neutral
M 9.0%
Slightly unfamiliar
18.6%
Unfamiliar
Completely unfamiliar 21.1
0% 10% 20% 30%
H25
H26
Familiarity with Newport
Beach Aspects
Survey respondents were then asked
to rate their familiarity with specific
aspects of Newport Beach as a leisure
travel destination. Familiarity levels
were similar across all aspects tested,
with travelers being relatively most
familiar with Newport Beach's shopping
opportunities (30.6 %), major visitor
attractions (30.1 %) and ambiance d
atmosphere (30.1 %), and relatively least
familiar with the city's arts & cultural
activities (27.9 %) and festivals and
special events (27.5 %)
Source. Destination Analysts, Inc.
Interest in Type of Trip to
Newport Beach
Survey respondents generally express the
most interest in visiting Newport Beach
for a weekend getaway of 1 -2 days with
an overnight stay (46.6 %). Interest in
this trip type is most prevalent among
respondents who live in DMAs within
the state of California. Those who reside
in farther /long -haul markets are most
interested in visiting Newport Beach for
an extended weekend trip or vacation.
Source. Destination Analysts, Inc.
Familiarity with Newport Beach Aspects
Familiar ■ Very Familiar
Shopping opportunities
Major visitor attractions
Ambiance & atmosphere
Neighborhoods
Restaurants and dining scene
Nightlife and bars
Hotels
Affordability of visiting
Arts & cultural activities
Festivals and special events
0% 10% 20% 30%
40%
ago
Vacation- 17.4%
Seattle
Extended Weekend- 12.9%
hington D.C.
Vacation- 18.4%
San Diego
Weekend getaway- 26.6%
Francisco
Extended Weekend- 22.6%
Sacramento
Weekend getaway- 23.9%
snix
Extended Weekend- 19.7%
Los Angeles
Day trip- 36.5%
Interest in Type of Trip to Newport Beach
■ Interested Very Interested
Vacation (6 or more days 16.3%
away from home)
Extended weekend or short 17.5%
midweek trip (3 -5 days)
Weekend getaway (1 -2 16.7 %)
days, with overnight stay)
Day trip (no overnight stay) r 13.0% I
0% 20% 40% 60%
Overall Appeal of
Newport Beach
Overall, Newport Beach is considered to
be an appealing leisure destination. 63.4
percent of respondents rated Newport
Beach to be a "Slightly appealing,"
`Appealing," or `Extremely appealing"
leisure destination. One quarter are
neutral about the destination. About one
in ten find Newport Beach unappealing
as a place to visit for leisure.
Source., Destination Analysts, Inc.
Newport Beach Destination
Attributes Rating
Survey respondents were asked to rate
how good Newport Beach is to visit
for a number of different destination
attributes and experiences. The chart at
right shows the percent of respondents
rating Newport Beach as a `good"
or `very good" destination for each
attribute /experience tested. Newport
Beach beaches (69.9%), scenic beauty
(63.846), environment to relax (60.846),
and outdoor recreation (59.6%) are its
most appreciated destination attributes
amongst these travelers. It is not seen as
particularly affordable or historical.
Source., Destination Analysts, Inc.
Angeles
60.3%
Diego
50.5%
✓York
49.0%
Francisco
45.8%
'amanto
43.5%
D.C.
42.6%
40.0%
39.7%
37.4%
33.9%
Newport Beach Destination Attributes
• Good Destination Very Good Destination
Beaches
Scenic beauty
Place for relaxation
Outdoor recreation
Restaurants and cuisine
Overall ambiance &
Safety
Shopping opportunities
Lots to see & do
Hotels
Romantic ambiance
Cost of getting there
Nightlife and bars
Festivals and special
Arts & Cultural activities
Spas
Place for kids
Cultural diversity
Affordability
Historical attributes
37.2%
�A% 27.2%
�B:5% 22.3%
X7.2% 22.4%
�.S% 18.4%
�7% 19.1%
�,S% 19.6%
�.l% _ 16.2%
34.0% 15.5%
.1 34.1% 14.7%
1 30.8% 163%
2 28.1% 14.0%
I! 28.7% 12.3%
{:S 28.7% 12.2%
27.1% 11.9%
12.3%
12.6%
41.0%
_ 10.8%
9.4%
D% 20% 40% 60% 80%
H27
2s
Top Attributes for
Newport Beach
Survey respondents were asked to select
Newport Beach's three best attributes
as a place to visit. Responses closely
followed Newport BeacM attribute
ratings. Travelers clearly see the
destination's top attribute as its beaches,
reported by two - thirds of respondents
(66.2 %). Scenic beauty (33.7 %), being
a place for relaxation (22.0%), and
outdoor recreation (22.0 %) are also
considered to be Newport Beach best
attributes as a leisure destination.
Days & Nights
in Newport Beach
Survey respondents were asked to
imagine their ideal trip to Newport
Beach and asked a series of questions
about what that trip would be like. The
average respondent would stay 3.7 days
and 3.2 nights in Newport Beach. Those
who reside in farther markets, such as
New York and Washington DC would
stay longer, while those who live in
nearby markets, such as Los Angeles and
San Diego would stay in Newport Beach
for a shorter period.
0 Days in Newport Beach
253%
20%
10%
0%
41
Source: Destination Analysts, r:...
Source: Destination Analysts, Inc
Nights in Newport Beach
24.9% 30% 26.1%
Zero One Two Three Four Five
or
more
20%
iDl:7
0%
Zero One Two Three Four Five or
more
4.7 Days
3.6 Days
New York
4.2 Nights
Sacramento
3.3 Nights
4.4 Days
3.4 Days
Washington D.C.
19 Nights
Phoenix
2.9 Nights
4.1 Days
3.1 Days
Chicago
3.7 Nights
San Francisco
2.7 Nights
3.9 Days
2.8 Days
Seattle
3.4 Nights
Los Angeles
2.6 Nights
3.9 Days
2.8 Days
Portland
3.3 Nights
San Diego
2.5 Nights
Source: Destination Analysts, Inc
Nights in Newport Beach
24.9% 30% 26.1%
Zero One Two Three Four Five
or
more
20%
iDl:7
0%
Zero One Two Three Four Five or
more
Month of Trip Month of Trip to Newport Beach
to Newport Beach
While there is interest in taking trip to January V 3.8%
Newport Beach during all months of the 3.4%
year, the highest likelihood of visitation February
for an ideal trip to Newport Beach would March 4.0%
take place during the summer months of April Y - 15.3%
June (19.8 %) and July (17.0 %). May - ,13.8%
Source. Destination Analysts, Inc. Jung 19.8%
July `- 117.0%
_
August c 11.5%
September -8
October P1.7% 5.%
November %
December
0% 10% 20% 30%
Overnight Stay Metro Area- % who in Newport Beach Washington D.C. 86.8% would Phoenix Newport 84.9%
The vast majority of survey respondents
would stay overnight in Newport Beach Sacramento 86.5% Portland 84.5%
(83.9 %). This sentiment is most common San Francisco 85.8% New York 83.2%
among those who live in the markets of Chicago 85.2% San Diego 80.7%
Washington DC (86.8 %) and Sacramento
(86.5 %). Those who live in nearby San Seattle 85.2% Los Angeles 76.1 %
Diego (80.7 %) and Los Angeles (76.1 %)
are least likely to stay overnight.
Source. Destination Analysts, Inc.
Yes,
83.9%
No,
16.1%
H10
Type of Lodging
in Newport Beach
During their ideal trip to Newport
Beach, respondents would most likely
stay in commercial lodging such as a
hotel (61.4%) or resort hotel (37.7%).
39.2 percent would stay overnight in a
motel (23.9 %) or inn (15.3 %).
The Newport Beach Visitor
The Newport Beach visitor is similar
to the California visitor, and primarily
resides in -state (57.0%), is affluent
(average annual household income
is $123,400) and is married (60.0%).
According to the 2007 Economic
Impacts and Profile of Newport Beach
Visitors Report by Lauren Schlau
Consulting, 50.0 percent of Newport
Beach Visitors have children under
18 at home. The typical visitor has
2.1 children at home and is 38.8 years
old. They are also frequent travelers,
taking 5.8 trips per year on average
(Source: Newport Beach Perceptions &
Intentions Study, Y Partnership).
Newport Beach is fortunate to have a
tremendous balance of elements that
appeal to all types of travel groups.
According to the 2007 Economic
Impacts and Profile of Newport Beach
Visitors Report, half of Newport Beach
visitors traveled in a family group,
one in five traveled as a couple, and
Type of Lodging in Newport Beach
Hotel 61.4%
Resort Hotel 37.7%
Motel
23.9%
Inn
15.3%
Vacation home rental
11.9%
Campground
7.5 °�
Private residence
6.8%
Time share property
60,
RV Park
4.0%
Hostel
3.7%
Other 1.2%
0% 20% 40% 60% 80%
Source: Destination Analysts, Inc.
approximately one in ten traveled alone,
with a group of family and friends, or
with colleagues. The average length of
stay in Newport Beach is 3.4 days.
The clear majority of Newport Beach
visitors are day -trip visitors (88.3%),
which makes an obvious opportunity
for the community's tourism
stakeholders to generate more overnight
stays and thus economic impact.
According to Lauren Schlau Consulting,
Newport Beach hotel guests spend an
average of $333 per day, compared to
just $55 for day -trip visitors.
This money is spent throughout the
community. The top five activities
engaged in while in Newport Beach
are dining out in restaurants, visiting
the beach, sightseeing, shopping and
socializing (Source: 2007 Economic
Impacts and Profile of Newport
Beach Visitors Report, Lauren Schlau
Consulting).
Newport Beach is a drive destination
that is primarily visited for leisure
purposes. Over three - fourths of visitors
come to Newport Beach for leisure. The
drive market is composed of the largest
proportion of Newport Beach leisure
travelers with two - thirds of visitors
arriving by car. Of all Californians
who visit Newport Beach, nine in
ten were in the drive by market. The
fly market held a smaller proportion
with 27.0 percent of leisure travelers
arriving by commercial plane. (Source:
2007 Economic Impacts and Profile of
Newport Beach Visitors Report, Lauren
Schlau Consulting).
About half of Newport Beach visitors
stayed overnight in paid commercial
lodging within Newport Beach, while
30 percent stayed overnight in a
private residence of a friend or family
members. A smaller proportion of 9.0
percent stayed in an RV Park (Source:
2007 Economic Impacts and Profile of
Newport Beach Visitors Report, Lauren
Schlau Consulting).
Southern California
Destinations Visited
Many Newport Beach visitors also
include other regional destinations on
their trips to the area. Nearly half of
respondents who visited Newport Beach
in the last two years also visited Los
Angeles during their trip (46.3 %). Almost
one -third visited San Diego while on
their trip (31.796) and about one quarter
of respondents visited Laguna beach
(26.5 %), Anaheim /Disneyland (24.4 %)
or Beverly Hills (23.7 %).
Reasons for Not
Visiting Newport Beach
More Frequently
Highlighting the importance of brand
awareness in destination marketing, the
top reasons survey respondents do not
visit Newport Beach for leisure more
frequently are because they `Just don't
think about Newport Beach" (33.4 %)
and `don't know enough about Newport
Beach" (29.4 %). Approximately one
in f ve find Newport Beach "too far
away or hard to get to" (22.2 %),
"too expensive," or think that "better
destinations exist" (19.0 %).
Southern California Destinations Visited
Los Angeles
San Diego
31.7%
.5%
Laguna Beach
Anaheim /Disneyland
4%
IF21.0%
Beverly Hills, CA
%
Long Beach
Huntington Beach
12.4%
La Jolla
11.7%
Dana Point
8.9%
Carlsbad
Irvine
7.9%
Encinitas
3.6%
0% 20% 40%
Source: Destination Analysts, Inc.
Reasons for Infrequency of Visits
I just don't think about Newport Beach
I don't know enough about Newport Beach
Too far away or too hard to get to
Its too expensive to travel to
Better destinations exist
Lodging is too expensive
I don't have enough vacation time
I've been there before
My travel companions prefer elseware
Food and/or activities are too expensive
I prefer other Orange County destinations
It's a generally unappealing destination
I prefer more urban destinations
There isn't enough to do
It's too conservative for me
Not a safe place to visit
None of these
Source: Destination Analysts, Inc.
H31
46.3%
60%
0% 10% 20% 30% 40%
H32
Focus of Newport Beach Trip:
Activities and Experiences
The vast majority of respondents would be
focused on experiencing beaches (80.4%)
during an ideal Newport Beach trip.
The destination's restaurants and dining
(63.0%), and shopping (39.1 %) would
also be top experiences sought. 30.9
percent of respondents would focus their
trip on special events and festivals.
Source: Destination Analysts, Inc.
Number of Trips
to Newport Beach
Respondents were asked how many trips
to Newport Beach they had made for
various reasons. In total, 25.2 percent
had never visited the city. The mean
number of trips taken to Newport Beach
among these travelers is 5.6. This consists
of2.5leisure trips, 1.6 business trips,
and 1.5 conference /meeting trips. Nearby
visitors from Los Angeles (4.6) and San
Diego (3.7) have made the most trips to
Newport Beach for leisure purposes.
Source: Destination Analysts, Inc.
Focus of Trip to Newport Beach
Beaches
Restaurants and dining
Shopping
Special events and festivals
Water recreation
Arts and culture
Kids activities/Family fun
Spa
Sailing/Boating
Golf
Tennis
Nightlife /bars
80.4%
63.0%
-139.1%
130.9%
26.9%
-125.9%
120.4%
116.5%
14.1%
9.8%
4.5%
r 0.0%
0% 20% 40% 60% 80% 100%
Number of Trips to Newport Beach
Leisure or Personal
Reasons
Business
Conference or Group
Meeting
2.5
1.6
1.5
0.0 1.0 2.0 3.0
to Newport Beach
Leisure- 4.6
Leisure- 2.1
Los Angeles
Business-1.8
New York
Business -1.7
Conference -1.9
Conference -2.0
Leisure- 3.7
Leiwre- 2.1
San Diego
Business- 1.6
Seattle
Business- 1.3
Conference- 1 -9
Conference- 1.5
Leisure -3.7
Leisure -2
Sacramento
Business- 1.5
Portland
Business -1.3
Conference -1.6
Conference- 1.4
Leisure- 2.6
Leisure- 1.7
San Francisco
Business- 1.5
Chicago
Business- 1.3
Conference- 1.6
Conference- 1.4
Leisure- 2.5
Leisure- 1.7
Phoenix
Business -/.3
Washington D.C.
1
Business -1.3
Conference -1.4
Conference- 1.4
Number of Trips to Newport Beach
Leisure or Personal
Reasons
Business
Conference or Group
Meeting
2.5
1.6
1.5
0.0 1.0 2.0 3.0
Most Recent Visit
to Newport Beach
Of the respondents who had previously
visited Newport Beach, over half did so
within the last two years (51.59'). Visitors
from Los Angeles, New York and San
Diego most commonly visited within the
last 6 months, while those who live in
Sacramento and Washington DC visited
in the last 6 -12 months, and those from
San Francisco visited Newport beach
between 1 -2 years ago.
Source: Destination Analysts, Inc.
Travel Inspiration
Survey respondents were asked to think
about where they typically draw their
destination inspiration from for their
trips. Highlighting the importance of
search engine marketing in allphases
of the travel process, one -third of
respondents said they turn to online
search engines to find inspiration for
their leisure trips (33.8 %). Other digital
resources such as online travel agencies
(27.0 %), Facebook content (25.3 %),
asking for recommendations via social
media (21.3 %) and DMO websites
(20.0 %) are also significant resources for
destination inspiration. Travel magazines
(25.1 %) and television programming
(21.9 %)are the most important offline
sources of destination inspiration.
Source: Destination Analysts, Inc.
Angeles Within 6 months -27.3
r York Within 6 months- 21.0
Diego Within 6 months -20.8
6-12 months- 19.7%
D.C. 6-12 Months- 18.3%
Francisco 1 -2 years-24.4%
More than 10 years- 25.9%
More than 10 years- 25.8%
More than 10 years- 23.1%
More than 10 years- 22.8%
IVI Rerent Trin Tn Newnort Rearh
More than 10 years ago 15.5%
Between 5 -10 years ago
Between 3 -5 years ago 9.4%
11.8%
Between 2 -3 years ago
Between 1 -2 years ago 17.4%
Within the last 12 months 18.6%
Within the last 6 months 15.5%
0% 10% 20% 30%
Travel Inspiration
Online search engines
Online travel agencies
Facebook content/newsfeed
Travel magazines
Television programming
Asking for recommendations via social
Official Visitors Bureau/Tourism board
Consumer review services
Newspaper travel section
Group discount sites
Image sites
Video Sites
Travel- related apps
Email newsletters/promotions
Movies
Google+ content
Special interest sites
Asking for recommendations directly
Books
Blogs
Travel agency
Printed guidebooks
Twitter content/tweets
Radio programming
H33
34
Days & Nights
in Newport Beach
Overall, respondents who visited Newport
Beach in the past two years stayed an
average of 3.2 days and 3.3 nights.
Visitors from nearby markets, such as San
Diego and Los Angeles, stayed fewer days
and nights, whereas visitors from farther
away, such as New York and Chicago,
stayed in Newport Beach for a longer
period of time.
Source: Destination Analysts, Ir rc.
Days in Newport Beach
WY
26.7%
30% 24.1%
18.6% 20.5%
20%
9.1%
10%
0%
One Two Three Four Five or
more
30%
20%
10%
wow
Nights in Newport Beach
0%
Zero One Two Three Four Five or
more
'k.+a.,�
4.4 Days
3.5 Days
'New York
4.3 Nights
Washington D .
3.1 Nights
4.4 Days
3.1 Days
Chicago
4,2Nights
Sacramento
3 Nights
4.4 Days
3.0 Days
Seattle
4 Nights
San Francisco
2,9 Nights
3.8 Days
2.4 Days
Phoenix
3.4 Nights
Los Angeles
3.1 Nights
3.5 Days
2.5 Days
Portland
3.3 Nights
San Diego
2.6 Nights
30%
20%
10%
wow
Nights in Newport Beach
0%
Zero One Two Three Four Five or
more
'k.+a.,�
I I
Resources Used to Plan Leisure TravelPercent of American Leisure
Travelers Using Each Resource to Plan Travel (past 12 months)
Lifestyle or Travel Magazines
30% 26.0%
25% 23.0% 27.9% 22.6% 21.3%
20% 17.4%
10%
0%
ANN ONry ONry O ^n! N, �r�Q
'J�iry ,9ry �J�ry ,dry )J�� ,wry
E- Newsletters
18% 15.4% 16.1% 16
16% 12.9% 13.4%
14% 12.6%
12%
10%
8%
b%
4%
2%
0%
Mobile Phones
45.0%
45% 41.3%
40% 37.3%
35% 29.4%
30% 26.4%
25%
20%
15%
10%
5%
0%
'�� ^^ ti0 ^ry 'Lary ry�1ry ry�1ry ry� ^Q
Source: Destination Analysts, Inc.
DMO Websites
34% 33.8%
33%
32%
31% 30.4% 29.8% 30.3%
30%
29% 28.2% 28.4%
28%
27%
26%
25%
�JA )ac ls�' )aC 4A )ac
DMO Print Guides
16% 14.2%
14%
12% 10.6%
10%
8%
6%
4%
2%
0%
>A lac q�l
lac �� ac
Social Media
45% 44.3%
40% 38.2%
35% 29.2%
30% 24.5% 24.6% 24.6%
25%
20%
15%
10%
5%
0%
^ry
lac ) 4y
H36
Media Consumption: Addressing
Travelers Diverse Needs
Research suggests that domestic
travelers are relying on an over-
expanding array of resources in
planning their trips. As new resources
have become available (e.g., advanced
online functionality, user - generated
content, group discount websites)
they have been quickly adopted.
Interestingly, however, in the midst
of this rapid change, travelers have
continued to use traditional media
resources (magazines, print guides,
etc.) to find inspiration and plan their
travels. This broadening of consumer
options for travel planning supports
Destination Marketing Organization
(DMO) marketing strategies that reach
out to potential visitors in a variety of
ways, both new and traditional.
Primary Purpose of Visit
79.2 percent of respondents who visited
Newport Beach within the last two years
visited for leisure purposes, including a
vacation or weekend getaway (52.3 %)
and to visit friends or relatives (26.9 %).
One in ten visited forpersonal reasons
(10.8 %), and 7.7 percent came for
business or conference purposes.
Source: Destination Analysts, Inc.
Destination Analysts recent State of
the American Traveler shows how the
marketing tools used by Visit Newport
Beach are used by segments of the
traveling public:
DMOs Websites and Print Guides:
Domestic leisure travelers report
significant level of usage of DMO
resources, both website and print.
Nearly one third of travelers will use a
DMO website and 12.5 percent will use a
printed visitors guide.
Print advertising and PR efforts:
Nearly one in five (17.4 %) use lifestyle
or travel magazines to gather travel
inspiration and information. Just under
20 percent use newspaper travel sections
as well. In total, 45.1 % report having
used at least one type of print resource to
plan their travels in the past year.
E -mail newsletters: E -mail newsletters
continue to be a resource travelers
turn to for information. These
communications have been used by a
consistent 10 -15 percent of travelers for
the past several years.
Social media: There has been a large
increase in social media use over recent
years, in which 44.3 percent of the
traveling public look to social media
resources (Facebook, Twitter, Linkedln,
etc.) to gather travel planning resources.
Mobile content: The type of travel
planning that has seen the largest
recent growth is mobile content, which
approximately 45.0 percent of travelers
in January 2014 say they have used to
plan their travels.
Resources Used to Plan Trip
In addition to online search engines
(40.4 %), one third of respondents
would use an official visitors bureau or
tourism board website to plan their ideal
trip to Newport Beach (33.2 %). Other
popular resources included online travel
agencies (32.3 %), directly asking for
recommendations from family or friends
via email, text orphone (28.0 %) and
consumer review sites (25.2 %).
Source: Destination Analysts, Inc.
State of the Marketing Industry
In SalesForce's 2014 State of Marketing
report, some key finding were made
on trends and insights were uncovered
through their annul survey of over 2,500
marketers in a variety of industries.
Three percent of respondents were from
the travel and hospitality industry.
The top three priorities for the upcoming
year were driving increased conversion
rates (47%); increasing and improving
brand awareness (46 %); and collecting,
measuring, and using behavior -based
data (29 %).
Marketers overwhelmingly plan to
increase or maintain their spending
in 2014. The areas favored for
additional spending were data and
analytics (61 %), marketing automation
H37
Resources Used to Plan Trip
Online search engines
Official Visitors Bureaufrourism board
Online travel agencies
Asking for recommendations directly
Consumer review services
Facebook content/newsfeed
Group discount sites
Asking for recommendations via social
Travel magazines
Google+ content
Travel- related apps
Travel agency
Video Sites
Image sites
Printed guidebooks
Newspaper travel section
Special interest sites
Blogs
Twitter content/tweets
Email newsletters/promotions
Television programming
Books
Movies
Radio programming
(60 %), email marketing (58 %), social
media marketing (57 %), and content
management (57 %).
0% 10% 20% 30% 40% 50%
To improve your marketing activities,
the report recommends to focus on
customer engagement, develop a clear
data access and inventory strategy,
compare and consider channel options,
evaluate email lifecycle campaigns, hone
in on clear mobile objectives, integrate
mobile efforts, and take a look at how
customers are experiencing the brand.
Objective
Increase overall leisure travel to
Newport Beach through research- based,
innovative, and effective integrated
marketing initiatives.
Strategies
Research & Planning
Conduct annual tourism destination
research and planning to support all
brand and marketing initiatives.
Awareness & Brand Management
Generate awareness of a positive
destination brand identity that is in
sync and consistent with Visit Newport
Beach's Brand Promise.
Coflateral
Produce a variety of online and printed
collateral materials that promote
Newport Beach and its partners to
visitors and local residents.
Online Marketing
Overview:
Website — Visit Newport Beach:
H38
With a new responsive site launched
in July 2013, Visit Newport Beach
will follow a pattern of continual
development, embracing the statement
"Live in Beta° Pushing future thinking
concepts while enhancing the site's core
sections and offerings will be ongoing.
Future development will focus on the
following areas:
Meetings: Expand consumables for
meeting planners with additional
programs, materials for pre and
during bookings.
Weddings: Create more dynamic
content and filtering of services for
wedding planning, receptions and
group dining, hotels.
Stakeholders: increase the business
listings and leverage other
developments from Dine NB,
Enterprise Newport Beach to bring full-
featured stakeholder representation.
• Press Room: Dynamic press releases,
database collection for media, asset
management and distribution.
Reservations: The new aRes no-
commission booking platform will
be expanded to promote more hotel
offerings, specials and event -based
promotions. Expand online ticket sales
for activities by adding more partner
additions to the system.
Social Media: The social media plan will
focus on content growth with increased
segmented content from the different
business units that fall under Newport
Beach & Co. for a diversified offering to
the Visit Newport Beach followers.
While watching for expanding and
new social startups and those already
existing gaining attention, main focus
will be given to the established channels
and finding new ways of working in
the content and opportunities for user
generated content to help promote the
destination. Contesting (sweepstakes and
giveaways) will be a regular mainstay
not only to create engagement but to
incorporate contesting that requires
participating by submitting content that
can then be repurposed.
Emerging social sites to watch will be:
Medium (blogging platform), Sulia (topic
based) and Mobli (Instagram- like).
Email: Visit Newport Beach will
transition to a new email platform that
will allow better, cleaner interaction with
the consumer database while improving
conversion rates, relevance and delivery.
Focusing on dedicated °drip- campaigns"
targeted outreach will be a continual
part of the relationship marketing
starting from the beginning upon
sign -up and continuing throughout the
communication process. Visit Newport
Beach will also process the database
to optimize for the best performing
individuals while purging old and non-
active email addresses.
Email segmentation will be refined to the
core categories of interest and will allow
future dynamic content generation based
on chosen interests and will personalize
content for each individual based on
these choices.
Search Engine Optimization: Continual
optimization and content creation is
vital for the indexing and organic search
growth of VisitNewportBeach.com.
Focus will remain on optimizing the
front and back -end keyword content
while creating new content that is
relevant to the overall objectives and
goals of Visit Newport Beach. This
includes expansion of detail in each of
the individual 10 neighborhoods and
growth of stakeholder representation
among Restaurants and Things to Do.
Additional content generation among
the many social media channels will also
focus on building searchable content
while watching trends on
how social media content feeds into
search indexing.
Focus will also be on increasing analytic
data points to increase event tracking
and set conversion goals to better
understand how changes are positively
affecting end results and allowing better
understanding of consumer behavior.
Visit Newport Beach will upgrade from
Google Analytics to the newer version of
Google Universal Analytics to increase
analytical tracking and to provide more
options for segmentation of the data.
Search Engine Marketing: Paid search
advertising is a key component of
the overall plan and objectives online
while supplementing SEO and organic
growth. Budget resources will increase
by 10% year over year and will focus on
keyword matching results from analytics
to optimize for best performing/volume
keywords. Additionally continual A/B
testing of ad groups for increased results
will be optimized through the fiscal year.
Mobile App: Visit Newport Beach will
focusing on a new mobile app redesign
that will focus on a new user interface
with emphasis on social sharing and
information for stakeholder filtering.
This new design will translate to a iOS
and Android platform, while offering
a mobile website version for additional
platform users and flow in a natural,
elegant navigation.
Leverage Newport Beach & Co.
subsidiary websites & online
channels: Additional development and
participation on divisional websites that
fall under the Newport Beach & Co.
umbrella will be a key part of the overall
online marketing plan to cross - promote
the destination and all of it's components.
These leveraged channels are:
• Dine Newport Beach
• Celebrate Newport Beach
• Enterprise Newport Beach
(Balboa Village Merchant Association)
• Newport Beach TV
PR & Communications
Creating demand to leisure audiences
is a key economic driver to the city of
Newport Beach. The key role of Public
Relations & Communications is to pique
interest of travelers, drive visitation and
grow overnight accommodation stays.
Media Relations
Public Relations & Communications
main media relations efforts hinge on
relationships cultivated. Continuing to
grow our media influencer database
while nurturing current relations is top
priority for the fiscal years ahead.
• Develop fresh 12 month editorial
calendar surrounding the following:
• Seasons (Fall, Winter, Spring,
Summer)
• Themes (Family, Romance, Multi-
generational, etc.)
• Holidays (Holidays, Valentine's Day,
Mother's Day)
• Community Events
• Unique aficionado angles (Shopping,
outdoor active, etc.)
• Flesh -out strategic on -trend pitches
• Refresh evergreen story angles
• Incorporate relevant culture
• Media Receptions as necessary
• Target Placement Channels
• Print
• Online
• Television
• Influencers /tastemakers
• Partnerships
• Celebrity
• Creative Tactics
• Domestic Media Relations
• Devise compelling story angles
centering around Newport Beach
• Proactive pitching to local, regional,
national media to place stories
• Assist incoming media requests
• Create fresh and bespoke itineraries
for incoming domestic media
Familiarization Tours based on
story angle
• International Media Relations
• Devise story angles for international
travelers
• Work extensively with Black
H39
Diamond (UK) and Gate 7
(Australia) to develop plans to
resonate with their market
. Develop custom itineraries for media
visitors
• Create fresh and bespoke itineraries
for incoming domestic media FAM's
based on story angle
Community Events
We also provide dedicated and extensive
PR efforts for key local events and
seasonal holidays, including:
• Newport Beach Restaurant Week
• Newport to Ensenada International
Yacht Race
• Newport Beach Film Festival
• 4th of July
• Christmas at the Beach
• Christmas Boat Parade
E- Communications
Blog Strategy
The Visit Newport Beach Inc, blog views
have grown substantially in the past fiscal
year and we aim to continue that growth
by the following:
• Continue to post blogs three times per
week for consistency and relevancy.
• Incorporate SEO targeted copy
• Add to our dynamic group of
guest bloggers
Consumer Enewsletter
Similar to the Visit Newport Beach
Inc. blog, the consumer Enewsletter
has continued to gage the interest of
consumers. We will continue to give the
consumer informative and interesting
information about the destination to
grow our audience -base.
40
Advertising & Promotions
Develop advertising and promotional
campaigns that are on brand and are
integrated with the other marketing
disciplines in order to:
. Increase year -round leisure travel from
day- trippers and first -time visitors
. Extend visitors' length of stay
Encourage repeat visitation
GOALS
International Marketing
Work in close collaboration with our
international agencies to educate and
promote Newport Beach to travel
trade companies and media in order to
generate visitation to Newport Beach.
Key international markets include
Australia, China, Middle East, and
United Kingdom
Community Relations
Work with our community partners
and visitor concierges to provide helpful
information and improve the visitors'
experience in order to generate repeat
visitation.
WEBSITE
FY12/13
ACTUALS
FY 13/14
GOALS
FY 14/15
••
FY 15/16
GOALS
UNIQUE VISITORS
632,133
695,000
775,000
852,500
WEB VISITS
778,794
856,000
964,000
1,060,400
TOTAL PAGEVIEWS
2,194,511
2,413,000
2,800,000
3,080,000
PAGES PER VISIT
3.0
3.4
3,25
3.50
FACEBOOK
39,700
43,6000
90,000
110,000
FOLLOWERS
TWITTER
FOLLOWERS
11,745
12,900
18,500
23,000
YOUTUBE
48,763
53,600
68,000
80,000
VIDEO VIEWS
TOTAL AD
IMPRESSIONS
120,911,466
126,957,000
139,652,700
153,617,970
ONLINE AD CLICKS/
239,054
251,000
276,100
303,710
VISITS TO SITE
H41
GALS
FY1 2/13
ACTUALS
FY 13/14
GOALS
FY 14/15
••
FY 15/16
GOALS
COLLATERAL
100,000
VISITORS GUIDE:
100,000
100,000
100,000
SPRING /SUMMER
N/A
70,000
70,000
70,000
FALL/ WINTER
N/A
30,000
30,000
30,000
MAPS
100,000
10,000
10,000
10,000
CALENDAR
N/A
5,000
5,000
5,000
OF EVENTS
MEDIA PITCHES OUT
266
1,000
1,200
1,500
PARTNER LEADS
62
350
500
750
AD EQUIVALENCY
$4,391,591
$7,000,000
$9,000,000
$11,000,000
PRINT CIRCULATION
34,091,384
555,000,000
700,000,000
900,000,000
UNIQUE VISITORS
212,167,607
436,000,000
500,000,000
750,000,000
IMPRESSIONS
2,315,876,469
5,000,000,000
7,000,000,000
10,000,000,000
TOTAL MEDIA
186
205
250
300
ASSISTS
DOMESTIC MEDIA
50
80
100
125
VISITS
iITNATION
•
COMMUNITY
310
400
500
525
PARTNER BUSINESS
WHOLESALER
COMPANY REPS
32
60
63
66
TRAINED
FAMILIARIZATION
N/A
8
3
8
TOURS
WHOLESALER
23
64 (ACTUAL)
67
70
COMPANIES
FAMILIARIZATION
N/A
3
3
3
TOURS
SALES CALLS/
N/A
31 (ACTUAL)
35
37
MEETINGS/TRAINING$
FAMILIARIZATION
N/A
5
10
11
TOURS
BUDGET
VISIT NEWPORT BEACH-LEISURE
FORCASTED REVENUE
FY 2015
$4,350,841
..
$4,536,513
OPERATING EXPENSES
$104,335
$106,493
ADVERTISING
$1,124,833
$1,154,157
COMMUNITY RELATIONS
$268,750
$343,750
COLLATERAL
$175,100
$214,000
INTERNATIONAL MARKETING
$258,090
$258,090
ONLINE MARKETING
$294,792
$294,792
PUBLIC RELATIONS
$176,000
$176,000
FEES TO NEWPORT BEACH & COMPANY
$1,948,941
$2,019,881
VISIT
NEWPORT
BEACH
CONFERENCE S-,UES
Mission
As the City of Newport Beach's official
Destination Marketing Organization,
the mission of Visit Newport Beach
Inc. is to partner with the tourism and
hospitality industry by protecting and
nurturing the destination brand and to
deliver additional spending by leisure
and conference visitors, leading to
enhanced community economic vitality
and quality of life.
1' '��` ort
,,w��
4g CBC EACH
'r & COMPANY
"In addition to the
significant direct
economic impact
generated by
meetings, they can
generate positive
experiences..:'
H43
f
4v
Research Highlights
Conference Sales & Service
A large proportion of the meetings
sector overlaps with the travel and
tourism industry; and it goes without
saying that it is essential that Newport
Beach aggressively seek this business.
In addition to the significant direct
economic impact generated by
meetings, they can generate positive
experiences, increased interest,
and eventually more city revenue
by providing its attendees with the
inspiration to return or even relocate a
business to the community. It is clear
that meetings not only gives group
meeting travelers a better sense of
what the city has to offer but more
importantly it ingrains a positive
familiarity that can draw groups and
individuals back for both leisure and
business travels.
Revenue generated by meetings has a
significant economic impact to the U.S.
economy. According to The Economic
Significance of Meetings to the U.S.
Economy 2012 Study conducted by
Pricewaterhouse Coopers for the
Convention Industry Council, 2012
direct spending from the U.S. meetings
industry in 2012 totaled $280.40 billion
while total federal, state and local taxes
collected added up to $28.06 billion.
This $280 billion generated by group
meetings filters into all aspects of local
communities. The table below shows
Pricewaterhouse Coopers `s estimates by
type of commodity created by meetings.
Newport BeacNs proximity to two major
commercial areas (Los Angeles and San
Diego) and its outstanding inventory
of meeting facilities leaves it well
positioned to benefit from the nation's
booming meetings business.
Direct Spending by Commodity
(Travel and Tourism Commodities
:ommodation
39,315
14%
A and beverage
29,832
11%
Transportation
23,761
8%
ail
8,235
3%
;cline
7,498
3%
:reation and
7,034
3%
ertainment
Rental
6,258
2%
,el services and Other
3,707
1%
idsm Commodities
ier Transportation
2,369
1%
an Transit
1,577
1%
& Water Transportation
600
<1%
)total
130,186
46%
etings and Other Commodities
eting Planning and
106,658
38%
duction
we Rental
10,363
4%
ier Meetings- related
33,195
12%
150,216 54%
Total Direct Spending $280,402 1007E
Source: Convention Industry Council by Pricewaterhouse Coopers
Business and corporate meetings are
the backbone of the meetings industry.
As Pricewaterhouse Coopers shows,
approximately half of all meetings
are corporate or business in nature.
Similarly, approximately half of meeting
participants attend these events. The
destination can also continue to benefit
from the other industry segments it is so
well suited for, conferences, trade shows
and incentive travel. Combined these
account for over 40 percent of meetings
volume.
As Newport Beach develops and
implements its strategies for selling
to the meetings industry, it does so
understanding that the industry is
changing. In a January 2014 article
published by Successful Meetings,
the top four meeting trends and
developments for 2014 suggest that
• Meetings are experiences
• Attendees want a sense of place
• Ies a seller's market, and..
• Mobile technology is here to stay
Strategies that show meeting planners
how to position the destination
appropriately for its exceptional
experiential qualities and promise
to connect participants with the
destination are likely to be effective.
H46
Corporate/ Business
1,298,300
113,337,000
50%
Meetings
26,768,000
67,700
9,172,000
Conventions /Conferences/
273,700
60,960,000
27%
Congresses
Trade Shows
10,900
26,768,000
12%
Incentive Meetings
67,700
9,172,000
4%
Other Meetings
182,600
14,710,000
7%
Total
1,833,200
224,947,000
100%
Source: Convention Industry Council by Pricewaterhouse Coopers
Corporate
Association /Membership
Non
Incentive Meetings
Other Meetings
Objectives
The foundation of the TBID agreement
is to directly impact the group segment
of business for TBID partner hotels.
To deliver on the TBID promise,
conference sales must foster current
client relationships and attract new
meetings and conferences to Newport
Beach through aggressive direct selling,
innovative marketing initiatives,
and strong community partnerships
resulting in increased room nights and
additional revenue.
• Increase definite room nights through
research and analysis of key customer
profile for each TBID partner
1,017,000
109,571,000
315,400
59,495,000
10,900
26,768,000
67,700
9,172,000
182,600
14,710,000
1.833.200
224.947.000
hotel and more targeted market
segmentation.
Create group marketing campaign
that can be retooled for each subset of
group clientele (third parties, clients
met at a tradeshow, clients currently
in funnel, or any other part or whole
of Simpleview database) to help sales
team advance awareness and motivate
action with clients at any point in the
relationship cycle.
. Increase market penetration in key
geographic territories of Northeast
and Southeast geographic territories.
Host 3 or more industry events per
49%
26%
12%
4%
7%
1
year bringing in a volume of potential
clients into the destination allowing
personal experiences of destination
and connections to be made with sales
staffs of Visit Newport Beach and
TBID hotels. Events in the destination
are also providing an economical way
for TBID community to access the
clients.
. Establish strategic partnerships with
community businesses who can
help conference sales elevate our
client experiences in the destination
(restaurants, off site venues, retailers,
transportation company, Destination
Management Company... )
• With the strong emphasis of trade
shows in the conference sales budget,
Visit Newport Beach will create a
new trade show booth identity that
will bring a strong brand presence for
Newport Beach while also inviting the
attendee into a comfortable setting to
foster conversation and engagement
with sales team.
• Continued education for staff on
current and new technology /social
media trends of the industry
• Conference services to be fully
operational with all the components
in place for full service (optional self
service) assistance and follow up.
• Create an internship program for
assistance with business development,
client events and other sales initiatives
as needed. An effective intern will not
only advance sales goals but provide
potential candidates for permanent
positions in sales.
Strategy
• Acquire group segment research
and data about business coming
into Orange County, San Diego, Los
Angeles, and Palm Springs that offers
information on geographic cities of
origin, peak and total room nights,
rates and patterns and
market segmentation.
• Merge market research with
information coming from hotels
directly with same demographic fields
to determine sales direction and focus
as a destination and for each
partner hotel.
. Director of Sales and VP of Sales
to create a customer focus group to
determine the messaging, timing and
frequency, as well as communication
vehicles for effective group marketing.
• Work closely with NB& Co offering
direction in messaging before creation
of copy, layout and design.
• Execute through Exact Target
for larger email drops, personal
computers for smaller groups.
• Redeploy territories to create viable
territory for additional national
sales manager.
• Recruit experienced sales manager
with contacts in the region
• Create growth plan for NE and
SE region that includes sales trips,
membership and involvement
in regional and local chapter
industry organizations, sponsorship
opportunities with same organizations
. More robust trade show commitments
in those regions and our partners
• Garner lead generation support from
our database research partners
• Senior VP of Sales to reach out
to all industry organization and
meeting publications leveraging
our relationships as partners and
advertisers to bring the next open
meeting to Newport Beach
Work with TBID hotels to create
equal opportunities to host events and
showcase hotels
. Follow through with mechanisms
that track ROI of hosting /sponsoring
industry event
Determine assets from the side of
Visit Newport Beach to articulate
to prospective partners and create
partnership collateral piece with
Director of Special Events and
Director of Creative Services.
Conduct personal calls with decision
makers of targeted businesses
introducing the many reasons to
partner with Visit Newport Beach
and the TBID community.
• Create an orientation program for
those interested in pursuing the
strategic partnership that addresses
m
the key aspects of Visit Newport Beach
goals and initiatives as well as the
basics of group business and meeting
planning.Require selected partners to
attend.
. Work with Director of Creative Services
to concept ideas, bid out to production
houses and further collaborate with
team on logistical details.
. Ensure that both identity can be
"modular" and fit the many types of
formats for client interactions
Personalized learning, based on
the individual's strengths, talents
and professional responsibilities
(Photoshop, Excel, Simpleview,
Cvent, General Marketing classes, etc.
— should remain based on use
of technology)
. Core classes /education to increase
each individual's knowledge in
current technology already in use/
place; Allows for a more streamlined,
cohesive sales process (Surface
training /customization, Simpleview,
Excel, Dropbox, etc.)
Develop profile on relevant social
media outlets (Twitter, Facebook,
Instagram, YouTube, etc.) to showcase
upcoming client events and /or reach
BUDGET
out to targeted groups (HelmsBriscoe,
ConferenceDirect, Pharmaceutical, etc.)
Rolling out of new conference service
°tier" structure, which differentiates
the service level for each incoming
group, which will actively engage each
client at least 13 months before their
group, arrives to Newport Beach.
Fully incorporate conference services
in the meeting section of the website
with conference service products
available to customers to access and
download directly from the website.
. Post meeting follow up with pick up
reports, client satisfaction survey, and
solicitation for repeat business
Develop a training program
Recruit intern
Develop advertising and promotional
campaigns that are on brand and are
integrated with the other marketing
disciplines in order to encourage
submission of RFPs and convert RFPs
into confirmed bookings.
Sales efforts will focus on continued
email list growth, social media
outreach for conference planners,
website enhancements and detailed
VISIT NEWPORT BEACH—CONFERENCE SALES
FORCASTED REVENUE
FY 2015
$3,057,283
FY ..
$3,209,672
OPERATING EXPENSES
$1,392,585
$1,441,223
ADVERTISING
$279,312
$283,063
CONFERENCE SALES
$1.,366,800
$1,466,800
RESEARCH
$18,586
$18,586
information on the destination and its
offerings, plus growth of search engine
optimization for organic listings on all
major search engines.
The Conference Sales team is a vital
asset and economic driver to the city
Newport Beach. With that in mind,
Public Relations & Communications
will boost meeting planner awareness
of the destination.
• Devise compelling story angles
centering around Newport Beach
group sales
• Target niche group sales publications
to pitch with aggressive follow -up
• Continue to provide media assists for
incoming writer inquiries
• Community relations effort to secure
exposure for group sales
• Meeting Planner FAM's in- market
• Develop media materials for the
Live the Dream promotion and pitch
publications to acquire publicity
• Produce a variety of online and
printed collateral materials that
promote Newport Beach as a
destination for group business.
DfNE
NEWPORT
BEACH
Mission
Dine Newport Beach is a strategic
marketing initiative cooperatively
created and managed by Newport Beach
& Company and the Newport Beach
Restaurant Association to enhance the
economic vitality of the Newport Beach
culinary community by showcasing and
promoting Newport Beach, California as
a dining destination offering innovative
cuisine, fresh fare, diverse experiences
and exceptional restaurants.
z
,ew ort
ACH
'r & COMPANY
H49
"...to enhance the
economic vitality of
the Newport Beach
culinary community
by showcasing and
promoting Newport
Beach as a dining
destination..:'
50
Research Highlights
Culinary travel is big business and
is a significant opportunity for
Newport Beach.
According to the World Food Travel
Association, food travelers and major
leisure destinations have specific
"PsychoCulinary profiles" that
distinguish their food expectations
and anticipated food experiences
respectively. For New York the food
scene is perceived as "Trendy, Gourmet
and Social' while San Francisco hosts a
"Localist, Organic and Innovative" food
profile. Discovering and promoting a
leisure destination's unique culinary
identity can help capture the attention
of food travelers and traveling food
enthusiasts alike.
The World Food Travel Association also
segments culinary travelers into three
groups: Deliberate, Opportunistic, and
Accidental Culinary travelers. Over 39
million leisure travelers are "deliberate
culinary travelers with an additional
35 million who are `opportunistic ".
This supports similar research done
by Destination Analysts that suggest
approximately 30 percent of American
leisure travelers consider themselves to
be foodies.
According to WFTA:
• Food travelers spend almost $100,000
per minute, 24 hours /day, on food and
drink while traveling in the USA.
. Food tourism in the USA is a $52
billion /year industry.
• Contrary to expectations, food
travelers were found to have average to
only slightly higher incomes, in other
words, the majority of food travelers
were not wealthy.
• Contrary to expectations, food
travelers were found to skew middle
aged to younger, in other words, the
majority of foodies are mid -aged to
H51
younger consumers.
• As anticipated, food travelers tend to
be better educated than other travelers.
A destination like Newport Beach,
with its outstanding culinary assets
seems well poised to capture additional
tourist dollars through effective culinary
marketing. As will be discussed in the
next section, this potential also exists
for culinary events.
Objectives
• Develop, launch and grow an effective
and recognizable consumer facing
Dine Newport Beach brand.
• Foster the Newport Beach culinary
community to develop strong
relationships in order to increase
restaurant, stakeholder and partner
engagement.
. Promote Newport Beach restaurants
and showcase the local culinary
The American Culinary Traveler report is available for $400 from the World Food Travel Association]
up locations or directions
takeout or delivery
rewards or special deals
e a reservation
up nutritional information
Source: National Restaurant Association
67% 88% 78% 63% 60% 31% 80%
52% 74% 62% 45% 39% 20% 67%
50% 70% 58% 47% 38% 21% 65%
46% 59% 60% 38% 40% 22% 56%
42% 55% 46% 38% 35% 23% 54%
u
community year-round to increase
diner awareness and generate
foodservice revenue.
Strategies
Dine Newport Beach Brand
The Dine Newport Beach brand will not
only be visually appealing and represent
the destination, but also will engage the
restaurant and diner audience and have
a long lasting effect in the local, regional
and national marketplace.
The brand, currently under
development, will be instrumental
in creating a "culinary identity"
for Newport Beach, and will take
into consideration the following
components:
• Demographics —Dine Newport Beach
target audience
• Competition — Competing local
markets for the diners' dollars
• Product — The types of restaurants
Newport Beach has to offer
• Properties — The features that make
Newport Beach a unique culinary
community
Dining is one of the top activities not
only for visitors to Newport Beach, but
also for the local residents and generates
over $555 million in annual revenue for
the city.
National Restaurant Association
research shows that technology plays a
large role in the restaurant and dining
world, and Dine Newport Beach
will position itself as a cutting edge
and progressive program that will
embrace all online opportunities to not
only position its brand in the digital
marketplace, but also engage online
diners to generate sales.
Percent of Restaurant Operator Currently Active on Social Media
70% 67% 59%
60% 52%
49%
50%
40 /°
° 36 %35% 40%
31%
30%
20% 130 19% 16%
11%
109'°
0%
Very Active Somewhat Active Not Active
Source: National Restaurant Association
IL
Family Dining
■ Casual Dining
Fine Dining
Quickservice
Fast casual
Awareness & Brand Management
The Dine Newport Beach program and
brand will launch with an integrated
online, print and public relations
campaign to introduce the fresh, new
brand, website and programming to
the local culinary community, regional
diners and media.
The brand will continue to grow
through monthly online promotions
and campaigns, cooperative advertising,
social media engagement, media
relations and strategic partnerships with
culinary events and other community
and industry partners.
Technology
Website
Dine Newport Beach will debut a
new website with easy URL access
at DineNB.COm to service all areas
of the dining community with a
comprehensive, all- encompassing
experience that allows the consumer
to find the specific information on
restaurants, dining guides, food
trends, events and more. With a fresh
look, state of the art programming
and functionality, and user - friendly
navigation, visitors to the website will
have an enhanced search, planning
and booking experience. This will
supplement the already existing touch
points and further expand the reach
and accessibility to the consumer while
incorporating the following:
• Responsive website design that
translates to all devices including
desktop, tablet and mobile
• Online reservation links to restaurant
platforms
• Social sharing capabilities, links and
integrated Yelp reviews
• Site indexing and search to provide
quick access to information
• Detailed multi- selection filtering
including food type, price and location
H53
• Promotional ad spaces on site for
partners, events, promotions, etc.
• Email capture to feed targeted lists
into overall email platform
• Special offers section to promote
restaurant offers and discounts
• Media room information for news
releases, media coverage and blog
content
• Information on the Newport Beach
Restaurant Association (NBRA)
including mission statement, benefits,
member services and leadership
. Detailed restaurant listings with
photos, videos, mapping and menus
SEO
The Dine Newport Beach website will
keep with search engine optimization
best practices and focus on Newport
Beach Dining keywords to index
top of organic search. Focus will be
on keyword research, volume and
competitor analytic tracking.
Public Relations
An effective PR plan is vital in
communicating the story and mission
of Dine Newport Beach, as well as
promoting the features of the website
and the local culinary community.
A comprehensive PR campaign will be
activated to launch new Dine Newport
Beach brand, marketing initiative and
website. In addition., Dine Newport
Beach will be introduced with a launch
event held at a local restaurant. Food
bloggers, media community leaders
and NBRA member restaurants will
be invited to attend and celebrate Dine
Newport Beach. Outreach to key media
in local and regional drive markets to
generate coverage and brand exposure
in radio, television, print and online.
Dine Newport Beach will develop and
u
grow strong relationships with travel
writers, influential lifestyle bloggers
and media professionals to ensure the
website receives editorial coverage
in local, regional and national media
outlets, throughout the year.
Advertising
A new brand creative campaign will
be introduced along with the website
launch to generate consumer awareness
in a variety of media including
newspaper and magazine outlets and
online. Paid and earned advertising will
appear in the Dining Out Magazine and
the Newport Beach Visitors Guides, as
well as in media partner publications.
Online Marketing
Consumer Email
Dine Newport Beach will conduct
regular consumer email campaigns
with robust content on dining trends,
restaurant promotions and events, and
will be a continual part of the monthly
e- communications from Newport
Beach and Co. Additionally, Dine
Newport Beach will generate dedicated
distributions for key events with
mirrored drip - campaigns to follow -up
on messaging and dining event details.
Social Media
The Dine Newport Beach brand will
be prominent on its existing social
channels, as well as promoted through
the Visit Newport Beach channels in
order to grow the brand, increase the
number social followers and build
online engagement. Messaging on
restaurant offers, culinary events, dining
trends and restaurant information will
be regularly scheduled. Dine Newport
Beach will conduct strategic outreach to
key culinary and dining influencers in
order to engage with these personalities
to broadcast to the larger social
population and expand the network.
r.
SEM
The new website, monthly restaurant
promotions and strategic events will be
advertised with targeted paid search ads
on the major search engines.
Partners
In addition to having a presence on
the Visit Newport Beach website, Dine
Newport Beach will work with key
industry and media partners to promote
the new website and programming
through partner digital channels.
Collateral
Check presenter insert cards will
be created to introduce the new
Dine Newport Beach website and its
comprehensive online dining guide to
consumers. Cards will be distributed
to Newport Beach restaurants to
disseminate to local diners. In addition,
the promotional cards will also be
distributed throughout Orange County
at key visitor locations.
Dine Newport Beach will produce an
online digital dining guide that will
include NBRA member restaurants and
foodservice establishments. The digital
dining guide can be accessed online on
the DineNB.com and can be viewed
as a dynamic digital publication or
downloaded for print.
Community Events
Dine Newport Beach will support and
partner with businesses, organizations
and events that assist in promoting
the local restaurant and culinary
community. Partnership will include
cooperative advertising, online and
social media support, public relations
assistance and presence at events with a
local restaurant component.
Newport Beach Culinary
Community Engagement
Newport Beach
Restaurant Association
Dine Newport Beach has been
established in partnership with the
Newport Beach Restaurant Association,
and its Board of Directors will provide
input on the program direction, content
and activities.
After completing along term strategic
plan, the NBRA has determined its
priority initiatives for 2014/2015 as
follows:
. Enhanced website and social media
engagement
i
• New marketing and media
partnerships investigation
• Targeted and measurable annual
marketing strategy
In collaboration with the NBRA, Dine
Newport Beach has incorporated the
priority initiatives into the annual
marketing plan through the objectives
and strategies set into place. The
partnership is successful in creating a
cohesive and united culinary identity
for Newport Beach.
Communications
Communication is key to engaging
the local culinary community and
growing restaurant relationships.
Regular email communications out to
NBRA members and partners on Dine
Newport Beach and NBRA programs,
promotional opportunities, meetings
and event opportunities, as well as
personal contact with restaurants and
foodservice operators will establish
ongoing stakeholder engagement.
Community Relations
Committed to being engaged in the
local community and providing support
to its stakeholders and partners, Dine
Newport Beach will be involved with
Newport Beach and Co. community
relations activities, as well as with local
culinary events, programs and initiatives
that promote the Newport Beach
foodservice industry. In addition, Dine
Newport Beach will recruit "Brand
Ambassadors" to champion the new
website and programing to all areas of
the Orange County dining community.
Promote Restaurants
Year -Round
Research
According to the National Restaurant
Association's Restaurant Industry
Forecast report, restaurant and
foodservice sales are projected to total
$683.4 billion in 2014, up 3.6 percent
from 2013. In inflation- adjusted terms,
industry sales are projected to increase
1.2 percent.
Dine Newport Beach will provide new
marketing and promotional programs
to all NBRA stakeholders to generate an
incremental increase in foodservice sales.
Awareness & Brand Management
Dine Newport Beach brand will
continue to grow through a variety of
initiatives including:
• New and relevant website content
• Monthly online restaurant promotions
• Cooperative advertising
• Social media engagement
• Media relations
• Strategic partnerships
Technology
Website
DineNB.com and VisitNewportBeach.
com will continually promote
restaurants and provide online and
mobile accessibility to updated dining
H55
information, offers and event details.
The website constantly communicates
with its community of visitors through
video content, blog posts, monthly
emails, Facebook, Twitter and
Instagram. DineNB.com believes in
educating diners in order to enhance
their Newport Beach experience.
Visitors to the website can easily search
for detailed information, explore
different neighborhood eateries, as well
as make online reservations and so
much more.
SEO
Keyword optimization will allow top
placements in organic search offering
Newport Beach restaurants to stay top
of mind year -round on the internet.
Public Relations
Strategic PR campaigns will be developed
throughout the year to generate themed
stories about the Newport Beach
dining experience and lifestyle. The
comprehensive PR and communications
plan will be designed to not only
promote the website and its content, but
also develop and grow the Dine Newport
Beach brand and mission.
Resturant Industry Sales in $Billions
1970 .$42.8
1980 - $119.6
1990 - $239.3
2000 $379.0
2010 $586.7
2014 683.4
$- $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0
Source: National Restaurant Association
H-6
PR strategies include:
• Host Orange County, LA, San Diego
and Bay Area food media to gain
exposure for Dine Newport Beach in
food enthusiast markets.
PR Campaign on the NBRA and its
Dine Newport Beach programs and
benefits to shine a light on how it has
been successful in driving business to
Newport Beach Restaurants.
. "I Dine Newport Beach" campaign
that focuses on community and
culinary leaders and their most
memorable Dine Newport Beach
experiences.
. Dine Newport Beach will conduct
ongoing outreach and story pitches to
local, regional and national media to
promote Newport Beach as a dining
destination throughout the year.
In addition, Public Relations &
Communications will cultivate unique
angles for consumer - related publicity
hits, bring local culinary media and
dedicated destination visits to pique
and drive consumer interest. What's
more, under all circumstances, all
international and domestic FAM's,
outside of dedicated culinary
opportunities, will experience
dine community.
Advertising
Paid, cooperative and earned advertising
will appear in the Dining Out Magazine
and the Newport Beach Visitors Guides,
as well as in media partner publications
throughout the year.
Online Marketing
The year -round online promotion of
Dine Newport Beach will focus on
utilizing the following channels:
Email
A strategic email marketing campaign
will be an integral part of the initial and
ongoing marketing and communication
outreach for Dine Newport Beach.
E- communications will go out to a
database of Southern California visitors
and will direct users to click through to
landing pages on the website. The focus
is to grow subscribers, increase open
rate and retain users on the website for
long periods of time. Key initiatives
include:
• Monthly newsletter distribution to
stakeholders, consumers, community
partners, media, etc.
• Ongoing promotions and incentives
for email signup to support subscriber
database growth.
• Leverage partnerships, events and
social media to maximize email
subscribers.
Digital / SEM
With the launch of the website, a tactical
digital campaign will be rolled out to
gain maximum online exposure for
DineNB.com. A comprehensive search
engine marketing plan that includes
strategic ad placement, pay - per -click
ads and strong SEO will maximize the
website's conversion rates and drive
visitors to book online.
Social Media
Through a strategic social media plan,
Dine Newport Beach will engage
and expose first -time and returning
visitors to all facets of the destination
through quality interactions that fuel
their matching passions. Social media
channels include Facebook, Twitter,
Instagram, YouTube and Pinterest, and
key social media initiatives include:
• Sharing content on traditional and
emerging social channels throughout
the website, and above the fold for
maximum visibility.
• Conduct sweepstakes and contests to
encourage fan sharing of photos and
videos, which in turn, will develop
viral content and focus enthusiasts to
join social channels in order
to participate.
• Create engagement and increase click -
through rates with compelling offers
and discounts.
. Tag partners in postings so that
visitors can access partner content
with one click
• Use hashtags to generate
conversations, marketing and
promotion of the website.
Collateral
In additional to check presenter inserts
and promotional rack cards, and the
online digital dining guide available
for download, Dine Newport Beach
will develop partnership opportunities
to produce and distribute additional
collateral materials used to promote the
brand and the website.
GOALS
Consumer and Industry Events
Dine Newport Beach will have a
presence at industry and consumer
facing events such as the California
Restaurant Industry Conference and
the Golden Foodie Awards in order to
promote the brand and the website to
both industry leaders and local diners.
WEBSITE
FY 13/14
ACTUALS
FY 14/15
GOALS
FY 15/1
GOALS
VISITORS
100,863
111,000
175;000
PAGEVIEWS
590,403
650,000
1,000,000
PAGES PER VISIT
5.25
5.78
6.5
TIME ON SITE
3:52
N/A
N/A
•
FACEBOOK
3,186
4,000
5,000
LIKES
TWITTER
1,147
1,500
2,000
FOLLOWERS
INSTAGRAM
370
500
750
FOLLOWERS
PINTEREST
121
N/A
N/A
FOLLOWERS
lei k
PR IMPRESSIONS
N/A
1,000,000
2,000,000
AD VALUE
N/A
4,500,000
6,000,000
EQUIVALENCY
PRINT CIRCULATION
N/A
30,000,000
40,000,000
MEDIA PITCHES OUT
N/A
200
300
PARTNER LEADS
N/A
100
150
TOTAL MEDIA
N/A
100
200
ASSISTS
MEDIAVISITS
N/A
50
100
1/
In addition, Dine Newport Beach will
support and partner with businesses and
organizations that assist in promoting
the local restaurant and culinary
community. Partnership will include
cooperative advertising, online and
social media support, public relations
assistance and presence at events with a
local restaurant component.
H58
*Dependent upon FY15 results, the finalized budget and strategic partnerships.
* *Dependent upon what happens with BID membership in FY15.
BUDGET
NEWPORT DINE
FORCASTED REVENUE
FY 13/14
ACTUALS
FY 14/15
GOALS
FY 15/1
••
ADVERTISING
$62,750
ADVERTISING
$46,264
ONLINEAD
N/A
1,000,000
2,000,000
IMPRESSIONS
$2,500
N/A
ONLINE MARKETING /ADVERTISING
PRINT AD
75,000
225,000
400,000
IMPRESSIONS
CONSUMER EMAILS
400
2,400
5,000
NBRA
469
515
600
MEMBER EMAILS
PROMOTIONAL
66,000
100,000
TBD*
RACK CARDS
DIGITAL DINING
N/A
VIEWS
TBD*
GUIDES
.2,000
BID MEMBERS
416
TBD **
TBD **
PAID MEMBERS
313
80% PAID
90% PAID
*Dependent upon FY15 results, the finalized budget and strategic partnerships.
* *Dependent upon what happens with BID membership in FY15.
BUDGET
NEWPORT DINE
FORCASTED REVENUE
$128,844
, .
$138,844
OPERATING EXPENSES
$62,750
$62,750
ADVERTISING
$46,264
$58,764
COMMUNITY RELATIONS
$1,330
$1,330
COLLATERAL
$2,500
N/A
ONLINE MARKETING /ADVERTISING
$16,000
$16,000
H59
ENTERPRISE
NEWPORT
R �--� � � � "...collaborate with
J Newport Beach &
BALBOAVILLAGE
Mission
As the official marketing organization
for the Balboa Village Merchants
Association (BVMA), Newport Beach &
Company will partner with the BVMA
Board and its merchants to protect
and nurture the destination brand
and to deliver additional spending by
locals and visitors, leading to enhanced
community economic vitality and
quality of life.
- '�` ort
w/�
t�` EACH
& COMPANY
Company to build
more effective
marketing strategies
and develop strategic
marketing plans."
E1
m
Overview
A number of Business Improvement
Districts (BID's) and Merchant
Associations (MAs) worked through the
city to drive business to their specific
neighborhoods. As the city made
changes, these BID's and MAs struggled
at times to effectively market their own
neighborhoods.
The city recommended that they
collaborate with Newport Beach &
Company to build more effective
marketing strategies and develop
strategic marketing plans. As an
organization that is well versed in
effective destination marketing
strategies, Newport Beach & Company
has a wealth of information at their
disposal to help promote these
neighborhoods. Newport Beach &
Company hoped to leverage their
current reach to help highlight
neighborhoods that maybe struggling.
The city offered a one -time payment
of $10,000 to Newport Beach &
Company if the BID or MA agrees to
work with Newport Beach & Company
that would go towards collaborating
with these different BID's and Mks.
Three neighborhoods were in need of
marketing assistance: Balboa Village,
Corona del Mar, and Balboa Island.
Balboa Island and Balboa Village fall
into the MA category, while Corona
del Mar is still a BID along with the
restaurant and tourism BID's.
Putting it all together:
What we do at Newport Beach &
Company is strive to support the
BID and the MA to have their own
governance. We work with their
advisory committee to understand
what their strategic goals are. Once we
know the goals, we can put together a
marketing strategy for how they can
most efficiently and cost - effectively
reach those objectives. Each set of
objectives and goals is tailored and
customized to fit their specific area
or neighborhood. Newport Beach &
Company provides recommendations
that their board or advisory committee
can approve.
The $10,000 covers our staffing and
time as their marketing committee over
the course of one year. The BID's still
operate under their own direction and
objectives and are responsible for their
own hard costs such as advertising,
collateral or website fees, although
Newport Beach & Company would
facilitate some of that.
Enterprise goals as a whole:
• To be the marketing agency for a
variety of our BID's or MAs so that
we offer consistency in branding and
messaging and the ability to leverage
our already- existing marketing arm
to assist the businesses within
Newport Beach
. Maintain the uniqueness and
distinctive qualities of our
neighborhoods and help them
promote those qualities that make
them one of a kind
• Bring more business into
Newport Beach and these unique
neighborhoods
H61
Research Highlights
Community- centric marketing is
advantageous in that it allows the
`refraining of marketing challenges' to
find new opportunities to service the
needs of locals. All of which can be
done at a much lower cost than trying
to attract new customers. The added
benefit of marketing to the community
is that the sense of belonging to a
greater cause breeds loyalty which
organically spreads through the public.
Forging a bond with the community
can also help a brand evolve by forcing
it to stay both innovative and authentic
to its consumer's changing needs. This
ability to adapt is a true testament to
a brand's longevity. Forward trends
H62
show that social media marketing will
be a huge outreach forum for both
community and non - community based
marketing. Social media marketing
provides an efficient vehicle to deliver
quality content. These platforms cut
through the clutter, which typically turn
tech savvy consumers away. According
to Business2Community.com, `image
based content will continue to drive
social media engagement' and studies
show that images receive. `50% more
interaction than text -based content:
Visually engaging consumers will
generate more interest and lead to
increased business.
(sources: hapWwwwforbes.
cam /2009 /04 /06/lara- lee -comm uni ty-
branding- leadershi p- cmo- network-
marketing.html and http: / /www.
business2communi ty. com /social-
media/14- social- media- marketing-
trends- 2014- 0745445 #!ErQBO)
Objectives
• Promote Balboa Village's two key
events (Newport to Ensenada
International Yacht Race and
Christmas at the Beach) in order to
generate awareness and business for
Balboa Village and its merchants.
• Ensure Balboa Village has a strong
consistent brand in the marketplace.
Strategies:
Awareness & Brand Management
Generate awareness of a positive
destination brand identity that is on
par with the overall Newport Beach
Brand.
Ensure that the below messaging is
translated in all disciplines:
• Balboa Village — Home of the
Fun Zone
• Old Town and Historical district of
Ne ort Beach
Collateral
Produce a variety of online and printed
collateral materials that promote
Newport Beach and its partners to
visitors and local residents.
Online Marketing
• Newport Beach & Co. will cross -
promote the stakeholders and events
of Balboa Village, as sectioned out
for that specific neighborhood. Users
will be able to sort offers, stakeholder
listings specifically to provide
direct access to the Balboa Village
information.
. Email: Balboa Village specific offers
and events inclusion in monthly /
yearly plan
• Website: Key promotions, contests,
offers and event details on the
DineNB.com, VisitNewportBeach.com
and BalboaVillage.com websites
• SEM: Paid search campaigns for the
Balboa Village stakeholders, events
and offers on Google, Yahoo, Bing
• SEO: Keyword optimization
for organic traffic increases on
stakeholders specifically in the Balboa
Village area
PR & Communications
Public Relations & Communications
will execute an emphasis on creating
interest and demand for the destination
to leisure audiences looking to explore
Balboa Village.
Community Events
Plan and execute community event
publicity support for Newport to
Ensenada International Yacht Race,
Christmas at the Beach and Balboa Car
Show by the following:
• Alerting media of event to drive
attendance
• E- communications and blog support
Media Relations
Throughout fiscal year 2014 -2015
and 2015 -2016, Public Relations &
Communications will glean publicity
for Balboa Village by developing unique
village spotlight stories to garner
visitation year- round.
In addition, Public Relations &
Communications will include Balboa
Village in international and domestic
FAM's, if writer's story -angle is deemed
suitable for visitation.
E- Communications
As apart of our strategic effort to
garner publicity to Balboa Village,
Public Relations & Communications
department will showcase Balboa
Village with dedicated blogs throughout
the year.
Advertising & Promotions
Develop advertising and promotional
campaigns that are on brand, are
integrated with the other marketing
disciplines, and promote the two key
events in order to:
• Increase year -round leisure visitation
• Generate awareness of Balboa Village
• Grow event attendance
Website Management of
www. Balboa V illage.com
BalboaVillage.com is managed by
Newport Beach & Co. and will focus
on the growth and expansion of the key
Balboa Village initiatives while acting
as a core supplement to consumers
researching the Balboa Village
neighborhood.
Focus will be on the key stakeholders
as outlined by category: Hotels, Dining,
Activities and Services. These key areas
will be promoted and updated and
also integrated into other online touch
points and outlets, websites managed by
Newport Beach & Co.
Key goals to accomplish will be:
• Increase site visitations, page views
Increase merchant listings
• Direct promotions, sweepstakes and
offerings on the Balboa Village site
• Drive action conversions (signups,
purchases, downloads)
Eventual migration of the site to a
responsive, mobile friendly version
with an updated look, color palate while
increasing functionality will be the
neat steps in development. Keeping on
a Word Press platform, we will be able
to leverage the open development and
plugins to expand and enhance
the website.
H63
Extra attention will be given to the
current and future events such as the
Newport to Ensenada International
Yacht Race and Christmas at the Village.
Homepage placement, dedicated
landing pages and detailed event info
will showcase on the site.
H64
GOALS
WEBSITE
VISITS
FY 12/13
3,083
FY 13/14
10,650
FY 14/15
GOALS
20,000
FY 15/16
••
25,000
PAGEVIEWS
9,572
25,776
45,000
55,000
TIME ON SITE
3:00
1:58
2:10
2:20
• , m,
FACEBOOK
N/A
3,345
4,500
5,500
TWITTER
N/A
44
200
400
TOTAL AD
IMPRESSIONS
N/A
1,301,804
1.6 MILLION*
1.68
MIWON*
.
BROCHURES
N/A
40,000
100.,000*
100,000*
MEDIA PITCHES OUT
N/A
85
150
200
PARTNER LEADS
N/A
50
100
150
AD EQUIVALENCY
N/A
$200,000
300,000
400,000
IMPRESSIONS
N/A
1,000,000
2,000,000
3,000,000
DESTINATION VISITS
N/A
50
100
150
*Dependent upon BVMAs budget.
BUDGET
NEWPORT
BEACHTV
Mission
Newport Beach & Co will be launching
and overseeing the expansion of
Newport Beach TV leveraging the
governmental access channel with
promotional opportunities from
different businesses around
Newport Beach.
55
"...leveraging the
public access channel
with promotional
opportunities from
different business
around Newport Beach."
E
1
6
Research Highlights
The landscape for media and information
consumption has changed drastically.
It has become "increasingly digitized'
and viewership of governmental access
stations has decreased. Other sources
of "community information" are being
sought out, and according to a study
conducted by the Journal of Broadcasting
and Electronic Media, public access
television only remains relevant for low
income populations.
There is a major shift in platform
usage among viewers of TV content
according to MarketingCharts.com.
51 percent of Americans aged 13 -54
stream TV programs and movies at least
once a week and of their total viewing,
20 percent of total viewing is spent
streaming content. This shift is due to
the convenience of streaming which
allows users to watch their TV content
on their own schedule. The result of
this new viewing trend is the increase
in mobile ad spending. The top popular
content on the Roku set -top streaming
device according to TomsGuide.com was
hit cable TV dramas such as Downton
Abbey, Breaking Bad and Walking Dead.
(Sources: http: //www.marketingcharts.
com/wp/traditional/top- drivers -of-
global-ad- spending - growth fom -2013-
through- 2016 - 41911/ and http://www.
marketingcharts.com/wp/televi sion!
more-than-6-in-lo-americans-aged-13-
33-said-to-stream-video-weekly-366291)
Objectives
Manage all aspects of the City's
television channel in order to increase
viewership, while adding sponsorship
revenue to cover all costs.
• Description — weekly program hosted
by Vicki Higgins focusing on health,
wellness and fitness
• Production — handled by Orange
County Films
• Promotion — Twitter, You Tube,
Facebook, Hoag website, chamber
website, city website, promoted in
local newspaper program directory,
host businesses' website, if applicable,
and followers
• Potential revenue sources — Hoag,
CHOC, spas, medical groups, health
food or vitamin stores, health clubs
Chronicling Newport Beach
(will begin as a 15 minute program)
• Description — weekly program
hosted by Gary Sherwin focusing
on the back stories of Newport
Beach's businesses, institutions,
landmarks, etc.
. Production — handled by Orange
County Films
• Promotion — Twitter, You Tube,.
Facebook, chamber website, city
website, promoted in local newspaper
program directory, repackage for
hotel loop, host businesses' website, if
applicable, and followers
Id,
Talk of the Town with Tom Johnson
(will begin at 30 minute program)
• Description — magazine type studio
sit -down program highlighting Inside
City Hall, people, businesses and
events happening in town, pick -a -pet.
• Production - NBTV staff shot at
City Hall
• Promotion — Twitter You Tube,
Facebook, chamber website, city
website, promoted in local newspaper
program directory
• Potential revenue sources — Pacific
Life, Irvine Co., Pimco, auto dealers
Dining
(will begin as 15 minute program)
. Description — restaurant show
focusing on ambiance, chef, food,
pairings, etc. hosted by Carrie
Williams.
. Production — handled by Orange
County Films
• Promotion — Twitter, You Tube,
Facebook, chamber website, city
website, promoted in local newspaper
program directory, NB Restaurant
Association, host restaurant's website
and followers
• Potential revenue sources — Jack . Potential revenue sources —
Strategies Croul /Cannery, Pacific Life, Pimco, Restaurant suppliers, restaurants
Launch four initial shows: Irvine Co.
Healthy Living
(will begin as 15 minute program)
H68
Retain existing programming.
Newport Beach & Company will work
closely with the City staff to produce
necessary programming to promote city
news, events and notices that they deem
necessary. Included in this will be to
incorporate present Newport Beach TV
part -time staff into flow with Orange
County Films.
City Council meeting
• Production - Handled by NBTV staff
Orange County Supervisors
• Production - Supes record and send
NBTV DVD.
Newport -Mesa School Board
of Trustees
• Production - Shot by District and
DVD supplied to NBTV
GOALS
Pick a Pet
• Will be included in above
referenced program
Remainder of year
• First 90 days launch four above listed
shows and find underwriting revenue
to cover production costs
• Second 90 days launch additional
programming, including a youth
related show and find additional
programming to cover production
costs
• Identify all special shows and add to
calendar
• Complete operating budget
• Maximize use of Google+
• Explore Friday night movie night and
SOCIAL
FACEBOOK LIKES
GOALS FY 14/15
1500
GOALS
3000
TWITTER FOLLOWERS
150
300
YOUTUBE
CHANNEL VIEWS
4000
7500
PRODUCTION COSTS
$75,000
$84,000
HOTELS
2500 ROOMS
2500 ROOMS
HOSPITAL
WAITING ROOMS
WAITING ROOMS
CHAMBER
600 MEMBERS
600 MEMBERS
BUDGET
NEWPORT
FORCASTED REVENUE
$190,000
$200,000
OPERATING EXPENSES
$108,704
$108,704
COLLATERAL
$6,296
$6,296
PRODUCTION COSTS
$75,000
$84,000
if costs allow implement programming
• Identify common programming
opportunities with Costa Mesa TV
• Create detailed social media plan
• Last 90 days launch loops for
hotel partners
• Last 90 days work with City (garbage/
water bills) to garner community
feedback on viewing
• Ongoing, explore additional
programming that furthers revenue
goals
• Ongoing, identify additional revenue
opportunities, including but not
limited to sponsorships
• Develop relationship with local
newspapers to promote planning
NEWPORT
BE_1CII & CO
STRATEGIC MARKETING PLAN
LIST OF RESOLRCES
Business 2 Community
Convention Industry Council
Dean Runyon Associates
Destination Analysts, Inc.
Federal Reserve Bank
Forbes
Lauren Schlau Consulting
Marketing Charts
r
r
a
Oxford Economics
Pricewaterhouse Coopers
Smart Asset
Smith Travel Research
Successful Meetings
TNS Travel America
Tourism Economics
U.S. Department of Commerce —
International Trade Administration (ITA)
99
U.S. Department of Commerce — Office
of Travel and Tourism Industries (OTTI)
UCLA Anderson Forecast
United States Travel Association (USIA)
Visit California
World Food Travel Association
Y Partnership
7
EYECUTIVE
TEAA4
GAM S I- 11111M IN
PRLSIUI ? \'f S CLO
Organizations: Newport Beach
Commodores, OC Visitors
Association, CalTravel Association,
DMAI, 7Cs, California State
University Fullerton Deans
Advisory Board
Favorite thing about Newport
Beach: I love the fact that this is a
sophisticated community with a small
town feel. It's where you can enjoy a
spectacular breakfast by the pool at
Pelican Hill and then go to the candy
shop on Marine Avenue on Balboa
Island within minutes coupled with
more drop dead beautiful views of the
ocean that you'll find anywhere.
Favorite thing to do in Newport
Beach: Driving down Coast Highway
on a clear sunny day by Crystal Cove
after a great lunch or dinner and
a morning on a Duffy ride in the
harbor. The "people watching" at
Fashion Island is also a great way to
spend the afternoon.
\ ICkt HIGGINS
EA .CI TIN E\ ICE I'll ES11)E \T
&- CHIEF 1LUIKETING OFFICEIt
Organizations: DMAI, CalTravel,
Visit California, OCVA, Women's
Speakers Association, California
Women's Conference
Favorite thing about Newport
Beach: I love the luxury and
aspirational lifestyle of Newport Beach
as it combines with the quaint charm
of the seaside villages.
Favorite thing to do in Newport
Beach: Outdoor activities - stand up
paddle board, hike, run, kayak or a
sunset picnic at Lookout Point
i L
LESLEY SW UN
Cnn ?F FINA \CIAI.OFFICER
Organizations: Completing the
CDME course with DMAI
Favorite thing about Newport
Beach: The beautiful sunsets
Favorite thing to do in Newport
Beach: Spend an afternoon in a
Duffy boat
� I
t,
w
NEWPORT
BEACH & CO
TEAA4
MICHELLE DONAHUE RVBY GUALBEBr1'O
SE \I Oil N ICE PRESIDENT
V ICE PR EIS IDE \TOF
OF ALES
IL1It1ETING DEVELOPMENT
Favorite thing about Newport
Organizations: American Marketing
Beach: The "small town feeling"
Association, DMAI, CalTravel,
of Newport Beach.
OCVA
Favorite thing to do in Newport
Beach: Drive or walk in residential
neighborhoods looking
at the awesome houses and yards,
and shopping at Rogers Gardens
Z
Favorite thing about Newport
Beach: All of the outdoorsy things
and great restaurants and bars.
Favorite thing to do in Newport
Beach: Kayak by moonlight around
the Back Bay and Harbor; ride my
bike around Balboa Peninsula and
Back Bay.
7l
ANI \N DA FIELD
DIRlil1,011 OF PR
A COMNit NIGiTIONS
Organizations: PRSA
Favorite thing about Newport
Beach: How chic yet quaint the
city actually is. From the amazing
shopping at Fashion Island to the
culinary options around town to the
most opulent hotels, the city has so
much to offer!
Favorite thing to do in Newport
Beach: Exploring all the local
artisans and merchant shops.
H72
J "E DRYDL'N
DIRE.C7011 OF
CI FIMNE SERN ICES
Favorite thing about Newport
Beach: The great sense of history and
community, paired with an amazingly
gorgeous coastline.
Favorite thing to do in Newport
Beach: Trying new restaurants and
exploring boutiques of local designers.
LESLIE DODS
DIBECTOR OF
SPECLkL ENTNTS
Organizations: MPI -OC, IEG,
OC AMA
Favorite thing about Newport
Beach: The warm and friendly beach
town feeling.
Favorite thing to do in Newport
Beach: Explore the tide pools of
Little Corona Cove.
MARK III DYK
DIRECTOR OF
ONLINE I klIKETING
Organizations: DMAI, Cal Travel
Association, Orange County Visitors
Association Annual Conference
speaker
Favorite thing about Newl
Beach: Living here —wakin
to the sounds of the waves i
morning and heading out o
paddle, getting on the beat]
for a ride down the boardw
walking down to the local b
game of pool or grabbing a
tasty seafood at Bear Flag F
Favorite thing to do in Nei
Beach: Take in all the beaus
me, and translate that to im
posts via social media than
the tens of thousands I get t
on a daily basis.
%3
4[.1CIASNYDER BRl_ANN k S V CEDO KlAtN RAMSAUER
OFFICE, AI4\AGI ?It/ ONLINE C001tDI'N V'HM M BLIC RELATIONS
E\ECt' TINT _kSSIST"T & Cl1A1111Sl(]kTIOSS
TOTIIE CE0 SPECI U IST
Favorite thing about Newport
Beach: The Beaches, Balboa Island
and the Ferry
Organizations: CalTravel, OCVA,
DMAI, Recipient of the CalTravel 30
under 30 award
Organizations: PRSA, CalTravel,
OCVA, DMAI, Recipient of the
CalTravel 30 under 30 award
Favorite thing to do in Newport Favorite thing about Newport Favorite thing about Newport
Beach: Surf with my son at the Beach:'Ihe diverse neighborhoods Beach:'Ihe unique and alluring
Wedge. After surfing we eat lunch, that make up Newport. Crystal Cove, juxtaposition between high -end
grab an ice cream and rent bikes. the Peninsula and Balboa Island are luxury and casual beach vibe the city
my favorite neighborhoods. offers to locals and visitors.
Favorite thing to do in Newport
Beach: Go to the peninsula and enjoy
the ocean. I love to layout during the
day and then later in the afternoon
go rollerblading on the boardwalk!
Favorite thing to do in Newport
Beach: Spend time outside whether
it's on the beach, an outdoor activity,
dining al fresco, shopping, or simply
strolling through a village and
discovering something new.
774
DINE
NEWPORT
BEACH
COLLEEN COSTELLO
NI \It6ETING COORDIN VTOR
Favorite thing about Newport
Beach: The perfect beach
environment.
Favorite thing to do in Newport
Beach: Walk around Balboa Island
taking in the sights.
I
POLLY PEAK
TILE DINE NEWPORT BE V11
PROGRW DIRECTOR
Organizations: Les Dames
&Escoffier, Share Our Strength
Favorite thing about Newport
Beach: Love the sun, sea and the
relaxed Newport Beach lifestyle.
Favorite thing to do in Newport
Beach: Billing, afternoons in a
Duffy boat and beach walks at
Crystal Cove.
NEWPORT
BEACH TV
TOM JOHNSON
EXECI TI E PRODI CER,
\ BT\
Organizations: Amigos Viejos,
Commodore Club, Orange County
Youth Sports Foundation, Costa
Mesa United
Favorite thing about Newport
Beach: Great restaurants.
Favorite thing to do in Newport
Beach: Play golf.
75
VISIT
NEWPORT BEACH
CONFERENCE SALES fi SERVICE
TEAM
kN1 kN1) \ LLICNI
u III F'CTOI OFS\IJ'S
Organizations: MPI, SITE
Favorite thing about Newport
Beach: Newport Harbor
Favorite thing to do in Newport
Beach: Boating is a big hobby of my
family and mine and most of my free
time is spent on the water. I even
met my husband at our yacht club
(Balboa Yacht Club).
hil" I "1'h: I I NI)I)OCh
\ VHOIN AL S,ALFIS 11 VN V;I%II
Organizations: Society of Incentive
Travel Executives, Meeting Planners
International (Southern California
Chapter) Professional Convention
Management Association
Favorite thing about Newport
Beach: The incredible weather in
Southern California, the sunsets in
Newport Beach and being able to
explore our harbor on Duffy Boats.
Favorite thing to do in Newport
Beach: Shop, shop, shop!
i
11ILLU11 Ill RTON
\ \1I0 \\I. SOLI ?S U \N ViEll
Organizations: Associate Vice
Chair, California Society of
Association Executives
Favorite thing about Newport
Beach: The Weather
Favorite thing to do in Newport
Beach: Sit at Inspiration Point
and read.
H76
Loll 111())
\ "PIO\ \I. S \LEIS \I- \N4(AF.R
Organizations: MPI and PCMA
Favorite thing about Newport
Beach: The natural beauty of the city,
you can tell that people take pride
in their city. It's clean, beautifully
manicured, sophisticated yet relaxed.
ANl \N1)\ kFNNINC,
S v.LS \\u Sr'h\ tt:e
_VSSOCI \TE
Organizations: CHOC Glass
Slipper Guild - Chair of Secondary
Fundraising
Favorite thing about Newport
Beach: Visit the Wine Gallery in
Corona Del Mar.
ERIN Srr �-PLE1
S,NIA's a\D HESE.\RCH
Itll
COOI\ kTOR
Organizations: DMAI
Favorite thing about Newport
Beach: Crystal Cove
Favorite thing to do in Newport
Beach: Cruise on the harbor.
TOT Visit Newport Beach Inc
Proposed Budget
FY2ol5
61100 - Benefits
61110 - Medical insurance
61120 - Dental Insurance
61125 - Vision Insurance
61130 Life Insurance
61140 - Retirement Plan (401k)
61150 - Flexible Spending Plan
61160 - Personnel Benefit
Tota161100 - Benefits
62000 - Ofice Expenses
62100 Lease
62110 - Office Repairs and Maintenance
62115 - Office Move Expenses
Total 62000. Office Expenses
63000• Insurance
63100 - General Liability Insurance
63200 - Workers Compensation Insurance
63300 - Board of Directors Insurance
Total 63000- Insurance
64000 - Operating Expenses
64100 - Office Supplies
64101 - Stationary
64110 - Office Equipment Leases
64115 - Office Equipment (non - deprec)
64120 - Equipment Repairs & Maintenance
64125 - Computer Software (non - deprec)
64130 - Voice, Data & Cable - Office
64135 - Telephone - Mobile
64136 - Cable
64140 Postage
64145 - Shipping Charges
64150 Bank Fees
64151 - Merchant Account Fees
64160 - Membership Dues
64165 - Subscriptions
64170 - Team Meetings
64175 - Governance Meetings
64180 - Education
64190 - Business Licensing and Fees
64200 - Professional Services
64201 - Audit Fees
64202 - Tax Preparation Fees
64203 - Recruiting Fees
64204 - Legal Fees
64205 - Payroll Processing Service
Total 64200 • Professional Services
64300 - Depreciation Expense
64500 - Other Operating Expense
64600 - Business Meals /Entertainment
64700 - Temporary Personnel
Tom] 64000. Operating Expenses
64195 - Auto Lease and Expenses
2,255 2,255
2,255 2,255
600.00 1,500
540 540
250 250
50 30,000
5,000 5,000
1,000 1,000
600 600
6,600 6,600
11,464 600
19,504 39,490
WAN 3ri.:
FY2014 Revised
Budget
Ordinary Income /Expense
laconic
40000 Income
41000 - TOT Income
3,940,790
4,320,091
42000 - Partnership Fees
4,000
4,000
43000 - Co -Op Advertising Income
1,752
1,750
44000 - Event posting
-
44200 - Annual Marketing Outlook Dinner
6,500
25,000
Total 40000- Income
3,953,042
4,350,841
Total Income
3,953,042
4,350,841
3,953,042
4,350,841
Expense
61000 - Salaries
61010 - Salaries
39,872.00
49,532
61030 - Payroll Tax Expenses
3,146.00
3,908
Tom] 61000 - Salaries
43,018
53,440
61100 - Benefits
61110 - Medical insurance
61120 - Dental Insurance
61125 - Vision Insurance
61130 Life Insurance
61140 - Retirement Plan (401k)
61150 - Flexible Spending Plan
61160 - Personnel Benefit
Tota161100 - Benefits
62000 - Ofice Expenses
62100 Lease
62110 - Office Repairs and Maintenance
62115 - Office Move Expenses
Total 62000. Office Expenses
63000• Insurance
63100 - General Liability Insurance
63200 - Workers Compensation Insurance
63300 - Board of Directors Insurance
Total 63000- Insurance
64000 - Operating Expenses
64100 - Office Supplies
64101 - Stationary
64110 - Office Equipment Leases
64115 - Office Equipment (non - deprec)
64120 - Equipment Repairs & Maintenance
64125 - Computer Software (non - deprec)
64130 - Voice, Data & Cable - Office
64135 - Telephone - Mobile
64136 - Cable
64140 Postage
64145 - Shipping Charges
64150 Bank Fees
64151 - Merchant Account Fees
64160 - Membership Dues
64165 - Subscriptions
64170 - Team Meetings
64175 - Governance Meetings
64180 - Education
64190 - Business Licensing and Fees
64200 - Professional Services
64201 - Audit Fees
64202 - Tax Preparation Fees
64203 - Recruiting Fees
64204 - Legal Fees
64205 - Payroll Processing Service
Total 64200 • Professional Services
64300 - Depreciation Expense
64500 - Other Operating Expense
64600 - Business Meals /Entertainment
64700 - Temporary Personnel
Tom] 64000. Operating Expenses
64195 - Auto Lease and Expenses
2,255 2,255
2,255 2,255
600.00 1,500
540 540
250 250
50 30,000
5,000 5,000
1,000 1,000
600 600
6,600 6,600
11,464 600
19,504 39,490
WAN 3ri.:
TOT Visit Newport Beach Inc.
Proposed Budget
FY2o15
FY2014 Revised
Budget
64196 Auto Lease 3,616
64197 Auto Repairs and Maintenance 600
64198 Auto - Fuel 780
Tom] 64195- Auto Lease and Expenses 4,996
65000 - Travel
97,480
115,340
65100 Airfare
-
4,150
65200 Accommodations
-
3,000
65300 - Meals
-
1,500
65400 - Transportation Costs
-
500
65500 - Other Travel Costs
7,500
10,000
Total 65000 - Travel
1,750
9,150
66000• Advertising
66101 Leisure - Advertising
476,000
645,775
66102 -Local Event - Advertising
138,000
178,000
66103 - Media Promotions
10,000
10,000
66104 - Non -Media Promotions
60,000
60,000
66105 - Other Consulting Fees
-
-
66200 -Agency Management
66201 - Fees and Expenses
90,000
90,000
66202 • Ad Production
12,000
12,000
66203 - Creative Design/ Development
30,000
30000
66204 - Contests /Consumer Promotions
49,080
49,058
66205 - Photography
50,000
50,000
66206 - Other Contingencies
Total 66200- Agency Management
231,080
231,058
Total 66000 - Advertising
915,080
1,124,833
67000 - Marketing
67100 - Community Relations
67101 Research
110,000
35,000
67102• Trade Shows
-
-
67103 - Community Sponsorships
26,500
26,500
67104 - Annual Marketing Outlook Event
50,000
50,000
67105 Awards
2,000
2,000
67106 - Video
40,000
30,000
67107 - Promotional Items
21,000
16,000
67108 - VNB Inc. Events
16,000
16,000
67109 - Hospitality Training
18,000
10,000
67110 - Memberships
-
-
67111, Local Event Marketing*
130,000
66,250
67112 - Street Team
17,000
Total 67100- Community Relations
413,500
268,750
67300 • Collateral
67301 - Visitor Guide
16,500
10,000
67302 - Map of Newport Beach
38,000
38,000
67303 - Great Stays Guide
29,000
-
67304 - Mini Maps
4,992
-
6730S- Calendar ofEvents
6,100
6,100
67306 - Wedding Guide
10,000
-
67307 - Destination Brochure
-
-
67308 - Community Report
8,000
10,000
67309 - Marketing Plan
2,000
5,500
67310 - Partnership Packets
3,000
-
67311. Collateral Shoot Expenses
42,500
55,500
67312 - Collateral Distribution
45,000
45,000
67313 -Pet- Friendly Guide to NO
3,000
-
67314- Trails Guide
3,000
-
67315 - Special Interest Leisure Guide
3,000
5,000
Tom] 67300 - Collateral
214,092
175,100
67400 - International Marketing
67401 - Consulting Fees
97,480
115,340
67402 -TIN FAMs
20,000
30,000
67403 - Promotions
70,000
60,000
67404 - Trade Shows
4,750
5,000
67405 - Airfare
4,000
14,250
67406 - Accommodations
7,500
10,000
67407 - Meals
1,750
3,000
TOT Visit Newport Beach Inc.
Proposed Budget
FY2o15
FY2014 Revised
Budget
67408 - Transportation Costs 3,500 7,000
67409 - Other Travel Costs 750 1,000
67410 - Business Meals /Entertainment 2,500 3,000
67411 - Promotional Items 5,000 9,500
Total 67400 - International Marketing 217,230 258,090
67500 - Online Marketing
67501 - Social Media
67502 - Website Maintenance
67503 - Online Search Advertising
67504 - Digital Advertising
67505 - Online Contests /Promotions
67506 - Mobile Application
67507 - Consulting Fees
67508 - Website Redesign
67509 - CRM Annual Licensing
67510- Software (non- Deprec)
Total 67500 • Online Marketing
67600 - Public Relations
67601 - Media Services
67602 - Media FAM Tours
67603 - Promotions
67604 - Consulting Fees
67605 - Special Programs
67606 - Trade Shows
67607 - Media Relations
Tom] 67600 - Public Relations
Tom] 67000 • Marketing
68000 - Newport Beach & Company
68001 - NB & Co Fees
68002 - NB & Co Business Unit Sponsorships
Total 68000 - Newport Beach & Company
Total Expense
Net Income
5,040
4,800
81,000
66,000
75,100
120,000
16,000
12,000
3,000
3,000
10,000
6,000
60,332
50,000
6,000
6,000
26,992
26,992
283,464
294,792
26,004
26,000
50,000
60,000
45,000
20,000
28,965
40,000
9,000
20,000
12,668
10,000
171,637
176,000
1,299,923
1,172,732
1,668,266 1,888,941
60,000
1,668,266 1,948;941
3,953,042 4,350,841
TOT Visit Newport Beach Inc.
Proposed Budget FY2016
61100 - Benefits
61110 - Medical insurance
61120 - Dental Insurance
61125 - Vision Insurance
61130 Life Insurance
61140 - Retirement Plan (401k)
61150 - Flexible Spending Plan
61160 - Personnel Benefit
Tota161100-Benefits
62000 - Office Expenses
FY2015 Proposed
62100 Lease
Budget
-
Ordinary Income /Expense
-
-
Income
40000 Income
41000 - TOT Income
4,320,091
4,536,513
42000 - Partnership Fees
4,000
4,000
43000 - Co -Op Advertising Income
1,750
1,750
44000 - Event posting
2,255
-
44200 - Annual Marketing Outlook Dinner
25,000
25,000
Total 40000 - Income
4,350,841
4,567,263
Total Income
4,350,841
4,567,263
64101-Stationary
4,350,841
4,567,263
Expense
-
-
61000 - Salaries
-
-
61010 - Salaries
49,532.00
51,532
61030 - Payroll Tax Expenses
3,908.00
4,066
Tom] 61000- Salaries
53,440
55,598
61100 - Benefits
61110 - Medical insurance
61120 - Dental Insurance
61125 - Vision Insurance
61130 Life Insurance
61140 - Retirement Plan (401k)
61150 - Flexible Spending Plan
61160 - Personnel Benefit
Tota161100-Benefits
62000 - Office Expenses
62100 Lease
-
-
62110 - Office Repairs and Maintenance
-
-
62115 - Office Move Expenses
Total 62000. Office Expenses
63000• Insurance
63100 - General Liability Insurance
-
-
63200 - Workers Compensation Insurance
-
-
63300- Board of Directors Insurance
2,255
2,255
Total 63000- Insurance
2,255
2,255
64000 - Operating Expenses
64100 - Office Supplies
-
-
64101-Stationary
-
-
64110 - Office Equipment Leases
-
-
64115-Office Equipment(non- deprec)
-
-
64120 - Equipment Repairs & Maintenance
-
-
64125- Computer Software (non - deprec)
-
-
64130 - Voim Data & Cable - Office
1,500.00
1,500
64135 - Telephone - Mobile
-
-
64136 - Cable
-
-
64140- Postage
-
-
64145-ShippingCharges
-
-
64150 - Bank Fees
540
540
64151 - Merchant Account Fees
250
250
64160 - Membership Dues
30,000
30,000
64165 -Subscriptions
-
-
64170-Team Meetings
-
-
64175-Governance Meetings
-
-
64180 - Education
-
-
64190-Business Licensing and Fees
-
-
64200- Professional Services
64201 - Audit Fees
5,000
5,000
64202 -Tax Preparation Fees
1,000
1,000
64203 - Recruiting Fees
-
-
64204 - Legal Fees
-
-
64205- Payroll Processing Service
600
600
Total 64200 • Professional Services
6,600
6,600
64300 - Depreciation Expense
600
600
64500 - Other Operating Expense
-
-
64600 - Business Meals /Entertainment
-
-
64700 - Temporary Personnel
Tom] 64000 - Operating Expenses
39,490
39,490
64195 - Auto Lease and Expenses
TOT Visit Newport Beach Inc.
Proposed Budget FY2016
FY2015 Proposed
Budget
64196 Auto Lease
64197 Auto Repairs and Maintenance
64198 Auto - Fuel
Total 64195 - Auto Lease and Expenses
65000 - Travel
115,340
115,340
65100 Airfare
4,150.00
4,150
65200 Accommodations
3,000.00
3,000
65300 - Meals
1,500.00
1,500
65400 - Transportation Costs
500.00
500
65500 - Other Travel Costs
10,000
10,000
Total 65000- Travel
9,150
9,150
66000• Advertising
66101 Leisure - Advertising
645,775
690,099
66102 -Local Event - Advertising
178,000
178,000
66103 - Media Promotions
10,000
10,000
66104 - Non -Media Promotions
60,000
60,000
66105 - Other Consulting Fees
-
-
66200 -Agency Management
66201 - Fees and Expenses
90,000
90,000
66202 • Ad Production
12,000
12,000
66203 - Creative Design/ Development
30,000
30000
66204 - Contests /Consumer Promotions
49,058
49,058
66205 - Photography
50,000
50,000
66206 - Other Contingencies
Total 66200- Agency Management
231,058
231,058
Total 66000 - Advertising
1,124,833
1,169,157
67000 - Marketing
67100 - Community Relations
67101 Research
35,000
110,000
67102• Trade Shows
-
-
67103 - Community Sponsorships
26,500
26,500
67104 - Annual Marketing Outlook Event
50,000
50,000
67105 Awards
2,000
2,000
67106 - Video
30,000
30,000
67107 - Promotional Items
16,000
16,000
67108 - VNB Inc. Events
16,000
16,000
67109 - Hospitality Training
10,000
10,000
67110 - Memberships
-
-
67111, Local Event Marketing*
66,250
66,250
67112 - Street Team
17,000
17,000
Total 67100- Community Relations
268,750
343,750
67300 • Collateral
67301 - Visitor Guide
10,000
10,000
67302 - Map of Newport Beach
38,000
38,000
67303 - Great Stays Guide
-
29,000
67304 - Mini Maps
-
-
6730S- Calendar ofEvents
6,100
6,100
67306 - Wedding Guide
-
10,000
67307- Destination Brochure
-
-
67308 - Community Report
10,000
10,000
67309 - Marketing Plan
5,500
5,500
67310 - Partnership Packets
-
-
67311. Collateral Shoot Expenses
55,500
55,500
67312 - Collateral Distribution
45,000
45,000
67313 -Pet- Friendly Guide to NO
-
-
67314 - Trails Guide
-
-
67315 - Special Interest Leisure Guide
5,000
5,000
Total 67300- Collateral
175,100
214,100
67400 - International Marketing
67401 - Consulting Fees
115,340
115,340
67402 -TIN FAMs
30,000
30,000
67403 - Promotions
60,000
60,000
67404 - Trade Shows
5,000
5,000
67405 - Airfare
14,250
14,250
67406 - Accommodations
10,000
10,000
67407 - Meals
3,000
3,000
TOT Visit Newport Beach Inc
Proposed Budget FY2016
FY2015 Proposed
Budget
67408 - Transportation Costs
7,000
7,000
67409 - Other Travel Costs
1,000
1,000
67410 - Business Meals /Entertainment
3,000
3,000
67411 - Promotional Items
9,500
9,500
Total 67400 - International Marketing
258,090
258,090
67500 - Online Marketing
67501 - Social Media
4,800
4,800
67502 - Website Maintenance
66,000
66,000
67503 - Online Search Advertising
120,000
120,000
67504 - Digital Advertising
12,000
12,000
67505 - Online Contests /Promotions
3,000
3,000
67506 - Mobile Application
6,000
6,000
67507 - Consulting Fees
-
-
67508 - Website Redesign
50,000
50,000
67509 - CRM Annual Licensing
6,000
6,000
67510 - Software(non-Deprec)
26,992
26,992
Tom] 67500 • Online Marketing
294,792
294,792
67600 - Public Relations
67601 - Media Services
26,000
26,000
67602 - Media FAM Tours
60,000
60,000
67603 - Promotions
-
-
67604-ConsultingFees
20,000
20,000
67605 - Special Programs
40,000
40,000
67606 - Trade Shows
20,000
20,000
67607 - Media Relations
10,000
10,000
Tom] 67600 - Public Relations
176,000
176,000
Tom] 67000 • Marketing
1,172,732
1,286,732
68000 - Newport Beach & Company
68001 - NB & Co Fees
1,888,941
1,944,881
68002 -NB& Cc Business Unit Sponsorships
60,000
60,000
Total 68000- Newport Beach & Company
1,948,941
2,004,881
Total Expense
4,350,841
4,567,263
Net Income
-
-
EXHIBIT D
NEWPORT BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT
ANNUAL REPORT FOR FISCAL YEAR 2015
JULY 1sT 2014 THROUGH JUNE 30TH 2015
ORIGINATION:
Implemented beginning May 1 ", 2009 through an approved ordinance by the City Council, the Newport
Beach TBID was amended effective January 29`h 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 second annual report of the Newport Beach Tourism Business Improvement District (TBID) for
the FY2014 -2015 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 seven TBID lodging businesses. These services are designed to
benefit the seven 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
• 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
• The Island Hotel
COST BASIS AND EXPECTED REVENUE FOR FY2013 -2014:
Annual assessment rates are 3% of gross short term (less than 30 days) room rental revenue on the
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.
2024 is the renewal year for the TBID. The expected revenue for FY2014 -2015 is $3.23M. Revenue
forecasts are revisited in January of each fiscal year by the TBID Board of Directors to determine if
adjustments need to be made. This will be the initial two -year budgeting cycle as well.
ACTIVITIES FOR FY2014 -2015:
The strategic initiatives detailed in the VISIT NEWPORT BEACH INC. FY2014 -2015 Marketing Plan
include maintaining momentum for the "Live the Dream" campaign — a national promotion across all
market segments to generate interest in Newport Beach as a meeting destination, continuing with
enhancing exposure to targeted clientele through participation in appointment -based shows, and
advancing relationships with portfolio accounts such as HelmsBriscoe and ConferenceDirect.
A summarized breakdown of the TBID -board approved strategic initiative marketing and advertising
budget for FY2014 -2015 is as follows:
ADVERTISING
Meeting Advertising
$139,500
Production
20,000
Special Promotions
120,000
Fees (to NB &Co)
12,000
$291,500
CONFERENCE SALES
Site Inspections $50,000
Client Events 60,000
Database /Lead Development 158,000
Trade Show Expense 392,548
Sponsorships 397,000
Research 18,586
Customized Destination 428,500
$1,504,634
ASSESSMENT AND BOUNDARIES:
The TBID Agreement was renewed this year in January extending the renewal period for ten (10) years.
ESTIMATE OF NON - ALLOCATED FUNDS CARRIED OVER FROM FY2014 -2015:
$0.00
AMOUNT OF ANY CONTRIBUTIONS OTHER THAN ASSESSMENTS LEVIED IN FY2012 -2013:
$0.00
TBID Visit Newport Beach Inc.
Proposed Budget
FYM5
mcnme
40000 Income
41100 TBID Income
Total 40000 - Income
Total Income
Expense
61000 Salaries
61010 Salaries
61015 -Bonuses and Commissions
61020 Aura Allowance
61030 - Payroll Tax Expenses
Tom] 61000- Salaries
61100-Benefits
61110 - Medical Insurance
61120. Dental Insurance
61125 - Vision Insurance
61130. Life Insurance
61140 - Retirement Plan (401k)
61150 Flexible Spending Plan
61160 Personnel Benefit
TafaI61100 - Benefits
62000 -OIfice Expenses
62100 Lease
62110. Office Repairs and Maintenance
Total 62000 - Office Expenses
63000.1. .no
63100 - General Liability Insurance
63200 - Workers Compensation Insurance
63300 Board of Directors Insurance
Total 63000- Insurance
64000.Operating Expenses
64100 Office Supplies
64101-Stationary
64110 Office Equipment Leases
64115-Office Equipment(non- deprec)
64120. Equipment Repairs & Maintenance
64130 - Telephone - OBice
64135 - Telephone - Mobile
64140 -Postage
64145 Shipping Charges
64150 Bank Fees
64160 Membership Dues
64165 - Subscriptions
64170 Team Meetings
64180 - Education
64190 Auto Lease and Expenses
64191 Lease
64192 Repairs and Maintenance
64193 - Fuel
Total 64190 -Auto Lease and Expenses
64200 - Professional Services
64201 - Audit Fees
64202 - Tax Preparation Fees
64204 - Legal Fees
64205 Payroll Processing Service
Total 64200 - Professional Services
64300, Depreciation Expense
64500.Either Operating Expense
64600 Business Meals /Entertainment
Total 64000 - Operating Expenses
65000 Travel
65100 - Airhra
65200 Arcommndations
65300 Meals
65400 Transportation Costs
65500 - Other Travel Costs
Tom] 65000- Travel
66000• Advertising
66100 Meetings Advertising
66102 - Production
66105 Other Consulting Fees
66120 • Special Promotions
66121. Gift Cards
66122 - Promofional Events
2,021,221
2,021,221
2,021,221
617,543 746,711
155,553 189k
11,300
62,183
046,579
44,479 63,07'
5,22] d
7]3 90
3,]37 6,7,
53,310 63,70,
750 750
3,000 3,09
111,276 i44,B4$
83,964 8],36
83,964 87,36
40
3,024 3,024
3,006 3006
6,770 6,838
2,575
6,000
3,000
3,000
4,644
4,644
1,200
1,200
6,936
8,136
3,326
3,326
7,980
7,980
300
300
900
900
360
360
4,500
4,500
5,000
500
15,585
15,080
6,000
r 8,400
600
900
1,800
2,400
8.400
11.700
1,000
1,000
Soo
Soo
25,000
2,270
2,710
28,770
4210
5,046
10,000
1,600
1,800
10.800
0
110,922
102,937
7,000
18,000
6,000
19,200
2,400
6,000
1,800
6,000
600
600
18,600
49,800
138,635 139,500
13,000 20,000
12,000 12.000
55,000 60,000
6,500 20,000
EXHIBIT E
TBID Visit Newport Beach Inc.
Proposed Budget
M5
i t .
66123 Client Gifts 20.000 40.000
ToM166120 Special Promotions 01.500 120,000
Tom] 66000- Advertising 245,135 291,500
66200 - Conference Sales
66202 - Site Inspections 24,000 50,000
66203 Client Events 55,000 60,000
66204 Internahonal Sales Missions - 15,000
66205 Database /Prosperth,
106,478
156,000
66206 - Conference Services
3,000
3,000
66220 - Trade Show Expense
66221 - Travel Expenses
59,000
130,548
66222 - Registra0on
112,161
190,000
66223 -Booth Expenses
17,000
48,000
66224 Shipping
3,600
24,000
Tend 66220- Trade Show Expense
191.761
392.548
66230 - Sponsorships
66231 Group Booking Incentives
70,000
60,000
66232-i1ostedlndurery Events
76,600
100,000
66233 Industry Partnerships
15,000
42,000
66234 - Community Sponsorships
-
155,000
66235 Industry Sponsorships
40,000
Tom] 66230- Sponsorships
161,600
397,000
66240 - Customized Destination Support
66242 - Trade Shows - Partner Expenses
25,000
-
66243 - Sales Incentives
-
300,000
66244 - Client Events /Relations
-
-
66245 - Client Gifts
-
-
66246 Business Meals /Entertainment
-
2,500
66247 - Partner Engagement Expenses
-
6,000
66248 - Group Marketing Initiatives
120,000
Total 66240- Customized Destination Support
25,000
428,500
Total 66200- Conference Sales
566,839
1,504,048
67000 Marketing
67003 Research
31500
18,586
Total 67000 Marketing
3,500
18,586
Tend Expense
1,993,585
3,229,395
Net Income
27.636
0