Fiscal Year Report 2015/16

\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\

1 TABLE OF CONTENTS \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ Dear Santa Monica Destination Partner,

It is with great pride that I present our 2015/16 Fiscal Year in Review. 2-3 Introduction For 34 years, Santa Monica Travel & Tourism (SMTT) has worked to increase visitor expenditures, tourism revenues and local employment opportunities 4-5 through the promotion of Santa Monica as a travel destination. Our charge is simple: help maintain economic vitality in our beloved city. I am extremely About Us proud of the contributions that our organization and amazing hospitality and city partners have made to our community over the past three decades. 6-7 Santa Monica Travel & Tourism’s Five-Year Today we are excited to share and report on the work that has been accomplished in the wake of last year’s comprehensive destination brand refresh through our team’s combined sales and marketing Strategic Direction efforts. 8-9 Santa Monica’s vital travel industry remained strong and sustained steady growth in 2015. Our industry 2015 Tourism Economic Impact Statistics continues to be an economic engine that injects $1.84 billion into the local economy and employs 13,500 people with jobs that cannot be exported outside the city. Each Santa Monica household would have needed to contribute an estimated additional $1,200 in taxes to maintain city services at 10-11 their current levels, were it not for the $58 million contributed to the City’s general fund through visitor Santa Monica Travel & Tourism’s spending on hotels and taxable retail sales in 2015. Fortunately our hotels’ average daily rates and International Representation occupancy levels remain some of the strongest in the region.

Despite this remarkable success, Santa Monica continues to face growing competition in the global 12-23 market. This Year in Review captures much of SMTT’s work during the previous fiscal year to drive International Market Summaries balanced demand and fill identified need periods with a focus on overnight hotel visitors that consistently provide the highest economic benefits with minimal negative impact to our community. 24-25 More eyes are on Santa Monica than ever before as we find ourselves at the forefront of regional mobility North America Efforts and local accessibility with the additions of the Metro Expo Light Rail, Incline upgrades, Colorado Esplanade and Breeze Bike Share program. The completions of these projects will allow our 26-27 destination to service locals and visitors at previously unattainable levels, and SMTT looks forward to spreading the word to an international audience about the exciting refinements coming to our shores that Local Activities will enhance the car-free visitor experience. 28-29 SMTT is proud to represent the vibrant and progressive city of Santa Monica, and remains grateful for Digital Updates the opportunity to share the story of the unchanging character, people, and natural beauty that truly make this city what it is. 30-31 On behalf of the entire SMTT team and board of directors, thank you for your support and collaboration. Santa Monica’s Brand Refresh We look forward to continued success in the future. 32-33 Sincerely, How to Work With Santa Monica Travel & Tourism

Misti Kerns, CMP CDME President/CEO, Santa Monica Travel & Tourism

2 3 ABOUT US SMTT STAFF \\\\\\\\\\\\\\\\\\\\\\\\\\\\\

Misti Kerns, CMP CDME Omark A. Holmes Iris Nishina-Gee President/CEO Director of Marketing Accounting Coordinator

Richard Peterson Amy Mason Rachel Lozano Executive Vice President Marketing Manager Director of Visitor Experience

Kim Sidoriak, CDME Jackie Alvarez Kara Eldridge Chief Marketing Officer Public Relations Manager Visitor Experience Supervisor

Lauren Rogers, CDME Bianca Blasquez Julia Wilson VP, Business Development Marketing & Public Relations Assistant Visitor Experience Coordinator WHAT IS SANTA MONICA TRAVEL & TOURISM? Santa Monica Travel & Tourism (SMTT), formerly Santa Monica Nika Jalali Evan Edwards Convention & Visitors Bureau, is a private, non-profit corporation Manager, Europe & North America Director of Operations formed in 1982 and is funded by the City of Santa Monica’s Todd Mitsuhata Gary Starr general fund and the Tourism Marketing District assessment. Under Manager, Australia & Pacific Asia Financial/Research Analyst contract to the City of Santa Monica, the purpose of SMTT is to promote Santa Monica as a conference, business and leisure travel destination. As a sales and service organization, SMTT acts as the official tourism marketing representative for local businesses and the community as a whole. 2016 BOARD OF DIRECTORS 2015/2016 TMD COMMITTEE MISSION STATEMENT \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ Santa Monica Travel & Tourism works to increase visitor expenditures, tourism revenues and local employment opportunities Ellis O’Connor, Chairman Juan Viramontes, Chairman Fairmont Miramar Hotel & Bungalows through the promotion of Santa Monica as a travel destination. The Georgian Hotel Raphael Lunetta, Vice Chair Rebecca Huetter, Vice Chair VISION Chef/Restaurateur ETC Hotels To ensure Santa Monica is recognized as the premier beach-city Nicole Flynn, Treasurer destination in the world. Stephen Sowards, Secretary/Treasurer Macerich Le Meridien Delfina Santa Monica

BRAND PROMISE Richard Chacker, Secretary Bill Acuna, Member Santa Monica...an unforgettable beach city experience filled with eye- Perry’s at the Beach Wyndham Santa Monica at the Pier catching people, cutting-edge culture and bold innovations. It’s the Darlene Evans, Member Ed Curry, Member essence of the California lifestyle. Resident Loews Santa Monica Beach Hotel

Albin Gielicz, Member Karen Dailey, Member Resident Viceroy Santa Monica

Jeff King, Member Daniel Gregory, Member King’s Seafood Co. Ocean Lodge Santa Monica Beach Hotel

Paul Leclerc, Member Matthew Lehman, Member Loews Santa Monica Beach Hotel Fairmont Miramar Hotel & Bungalows

RoseMary Regalbuto, Member Angela Rogers, Member Resident Hotel Carmel

Juan Viramontes, Member The Georgian Hotel

4 5 FIVE-YEAR STRATEGIC DIRECTION

5-Year5-Year Strategic Strategic Direction Direction 2013/14 - 2017/18 OUR STRATEGICOUR STRATEGIC ANCHORS ANCHORS 2013/14—2017/182013/14—2017/18 STRATEGIC STRATEGIC AREAS AREASOF FOCUS OF FOCUS Strategic Areas of Focus

OUR VISION-OUT:OUR VISION-OUT: Santa Monica Santa Monicais is Drive balancedDrive balanced Enhance Enhance the brand the brand ActivelyActively champion champion Strengthen Strengthen Ensure operational Ensure operational the premierthe premier beach-city beach-city destination destination in in demanddemand for the for the and stewardand steward the the the valuethe value strategicstrategic partnerships partnerships excellence.excellence. the world.the world. destination.destination. destinationdestination experience. experience. of tourism.of tourism. and relationships.and relationships. OUR MISSIONOUR MISSION: To increase2013/14: To increase visitor - 2017/18 visitor expenditures,expenditures, Keytourism Goals tourism revenue & Objectives revenue and and 2013/14—2017/182013/14—2017/18 KEY GOALS KEY GOALS& OBJECTIVES & OBJECTIVES local employmentlocal employment opportunities opportunities • Maintain• Maintain minimum minimum • Ensure consistent throughthrough promotion promotion of Santa of Monica Santa Monicaas as• Establish• Establish and maintain and maintain •Maintain • Maintainminimum minimum favorable favorable •Ensure consistent•EnsureEnsure consistent delivery consistent on delivery • onIncrease • Increase strategic strategic OperationalOperational favorable impression of • Limit administrative a travela destination. travel destination. a stable year-round impressionimpression offavorable the destination of the impression destinations annual ofsdelivery andannual quarterly deliveryon andannual quarterlyeconomic on and annual economic andpartnerships’ target • Limit administrative a stable year-round the destination’s partnerships’ target occupancy. brand. brand.the destination’s impact,quarterly brandimpact,quarterly strengtheconomic brand and strengtheconomic and assortments. expensesexpenses to industry to industry OUR UNIQUE VALUE: PENDINGPENDING occupancy. assortments. OUR UNIQUE VALUE: •Maintainbrand. y/y brand.CVB-generated revenueimpact. generation.revenue impact. generation. standardsstandards and as and as SMTT BRANDSMTT BRAND INTENTION INTENTION • Maintain• Maintain consistent consistent y/y y/y •Maintain y/y CVB-generated • Increase• Increase stakeholder stakeholder •mediaMaintain placements•mediaMaintain y/y placements SMTTin target y/y SMTTin target •Ensure Ensure minimum•Ensure aEnsure consistently minimumnet a consistently net required requiredby Tourism by Tourism majoritymajority of international of international markets and publications that favorability rating of X% by support assupport measured as measured EffectiveEffective generatedmarketsgenerated media and publications media that high favorabilitynet highfavorability net rating favorability of X% by MarketingMarketing District. District. visitors. visitors. highlight highlightintended intendedmessaging. messaging. Santa MonicaSanta community Monica community by by by in-kind,by fairin-kind, share fair share CreativeCreative placementsplacements in target in target rating of ratingtourism of astourism as • Ensure• accountabilityEnsure accountability 2017/18. 2017/18. and engagement.and engagement. • Grow y/y average •Expand and manage our • Grow y/y average markets•Expandmarkets and and manageand our measuredmeasured by the Santa by the Santa as measuredas measured by our by our StrategicStrategic visitor spend. digital reach.digital reach. •Maximize•Maximize Board s proactiveBoard s proactive• Increase the number of visitor spend. publicationspublications that that Monica community. • Increase the number ofaudit, reporting,audit, reporting, Monica community. involvement in advocating for Bold • Maintain or increase •Ensurehighlight minimum•Ensure intended minimum average average involvement in advocating for qualifiedqualified client client financialsfinancials and plan and plan CaringCaring Bold • Maintain or increase highlight intended •SMCVB,Maximize tourism Board’s and on behalf overall brandoverall delivery brand score delivery of score of •SMCVB,Maximize tourism Board’s and on behalfrelationships. relationships. management system. year over year average messaging. management system. year over year average messaging. of the industry. Authentic ProfessionalProfessional proactiveof theproactive involvementindustry. involvement Authentic length oflength stay. of stay. 4 by 2015/16.4 by 2015/16. • Optimize• Optimize process processfor for • Expand• Expandand manage and manage •Position in advocating •thePosition destinationin advocating the for destination SMTT, and for SMTT, and determining SMTT Culture Culture OUR VALUES our digitalour reach. digital reach. the CVBtourism asthe a CVBand tourismleader onas in abehalf andtheleader on in behalf the determining SMTT OUR VALUES • Continually assess industry.of the industry. industry. support of/forsupport of/for • Continually assess of the industry. employee satisfaction LEADERSHIPLEADERSHIP and EXPERTISE and EXPERTISE communitycommunity events, events, employee satisfaction

COLLABORATION on key measures COLLABORATION initiativesinitiatives and projects. and projects. on key measures

We will cultivate an inspiring • Continually identify We will cultivate an inspiring • Continually identify team cultureteam culturethat fosters that fosters professionalprofessional creativecreative and enthusiastic and enthusiastic development individuals who elevate the development individuals who elevate the opportunities for all Santa MonicaSanta Monicaexperience experience opportunities for all throughthrough collaboration collaboration and and staff. staff.

ENTHUSIASM expert leadership.

ENTHUSIASM expert2015/16 leadership. - 2017/18 2015/16 – 2016/17 KEY STRATEGIC INITIATIVES Two-Year Initiatives 2015/16 – 2016/17 KEY STRATEGIC INITIATIVES

5a. Align organizational CREATIVITYCREATIVITY 2a. Deploy refreshed 3a. Strengthen Board 5a. Align organizational 1a. Maximize1a. Maximize domestic domestic 2a. Deploy refreshed 3a. Strengthen Board structure and resources brand and brand and TMD engagement. 4a. Evaluate4a. Evaluate and and structure and resources OUR STRATEGIC IMPERATIVES travel fromtravel target from target brand and brand and TMD engagement. to best serve our OUR STRATEGIC IMPERATIVES management tools streamlinestreamline offerings offerings to to to best serve our marketsmarkets. . management tools 3b. Raise3b. awareness Raise awareness stakeholders and • Drive balanced demand for across all channels. current andcurrent potential and potential stakeholders and • Drive balanced demand for 1b. Maximize across all channels. among SMamong residents SM residents on on achieve our objectives. the destination.the destination. 1b. Maximize partners.partners. achieve our objectives. international travel from 2b. Improve2b. Improve destination destination the valuethe of valuetourism. of tourism. international travel from 5b. Create5b. streamlined Create streamlined • Enhance• Enhance the brand the and brand steward and steward target markets. brand impression. 3c. Position SMTT as the destination. target markets. brand impression. 3c. Position SMTT as reportingreporting systems systemsfor for the destination. 2c. Build upon quality an innovative industry 1c. Enhance1c. Enhance our value- our value- 2c. Build upon quality an innovative industry both operationsboth operations and and • Strengthen• Strengthen strategic strategic partnerships partnerships add to our TMD Hotels, media placements and leader. add to our TMD Hotels, media placements and leader. culture. culture. and relationships.and relationships. relationships. hospitalityhospitality partners partners and and relationships. 5c. Bring values to life • Actively champion the importance 5c. Bring values to life • Actively champion the importance our community. 2d. Execute and optimize through employee/ of tourism. our community. 2d. Execute and optimize through employee/ of tourism. digital strategy. digital strategy. culture programs.culture programs. • Ensure• Ensureoperational operational excellence. excellence.

1 1 6 7 2015 ECONOMIC IMPACT STATS Average Daily HOTEL VISITOR $359 Spend Of: { DAY VISITOR $94 Find these statistics online at santamonicatourism.com

2015: Origin of Visitors: Spending Breakdown: $1.84 billion 48.2% International \ 51.8% Domestic 56% International \ 44% Domestic

Total Annual 13,500 Visitor Spending { Increase of 6.8%

Tourism jobs that stay in Santa Monica and cannot be exported 2014: $1.71 billion

$46.6 Top Five International Feeder Markets: Transient Occupancy Tax (TOT) generated by Santa Monica million hotels directly to the City of Santa Monica’s general fund

2.5% INCREASE FROM 2014

Australia/ England Germany Eastern Canada Asia Pacific New Zealand 7.4% 7.2% 6.1% 5.6% 76.1% of visitors walked to get around Santa Monica 11.4% once arrived

(An 18.9% increase from 2010!) Top Five Domestic Feeder Markets:

Retail Sales Tax Revenue Generated from Visitors $1,220 into the City of Santa The estimated amount of money Monica’s General Fund each Santa Monica household California New York Arizona Nevada Texas would have to pay in taxes to 32% 7% 7% 6% 5% maintain city services if tourism $11.9 revenues and the Transient 12.4% INCREASE million Occupancy Tax did not exist. FROM 2014

Source: Tourism Economic Impact & Visitor Profile 2015, Lauren Schlau Consulting and CIC Research, Inc. for Santa Monica Travel & Tourism 8 9 SMTT’S INTERNATIONAL REPRESENTATION

UNITED KINGDOM/IRELAND (pg.16) CHINA (pg.22) Jennifer Guiver, Black Diamond Agency Ltd Gold Linq Full-time trade representation Luxury China market advisors located Part-time public relations representation in Santa Monica, CA

FRANCE (pg.18) Mailys De Seze, Mn’Organisation Part-time trade representation BRAZIL (pg.14) AUSTRALIA/NEW ZEALAND (pg.12) Samantha Desmaison Novacek, X-Mart Annabelle Hender, Gate 7 Full-time trade representation Full-time trade representation Part-time public relations representation Part-time public relations representation SANTA MONICA, CA GERMANY (pg.20) Santa Monica Travel & Tourism Steffi Ahlers, MSI - Marketing Services main administration office and five International GmbH visitor information outlets Part-time trade representation

Continents graphic designed by Freepik 10 11 AUSTRALIA/NEW ZEALAND AUSTRALIA/NEW ZEALAND INFO \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ TRADE In 2013, Australia and New Zealand accounted for more than 670,000 visitors into California and $1.1 billion in travel NUMBERS spending – California’s 3rd and 12th largest overseas markets respectively. Both countries have seen continued growth in visitor numbers, increased length of stay and record spending. 90 CAMPAIGNS ACTIVATED The Australia and New Zealand dollar are at their weakest Sales calls in market levels against the U.S. dollar for some years, which may start to affect outbound travel, though intention to travel internationally SMTT partnered with Australian fashion label Witchery to promote Santa Monica in conjunction from both countries to the U.S. remains at all-time highs. with the launch of Witchery’s summer/spring collection (bottom left photo). Santa Monica was 9 promoted via Witchery’s point-of-purchase ads (200 stores), online magazine (23,000 average Increased airlift from Australia and New Zealand into the U.S. daily views), social media (reach of 473,000), and e-blasts (1 million recipients). The campaign has resulted in strong competition, resulting in the lowest U.S. Trade shows in market resulted in a 954% YOY increase in room nights booked in Santa Monica. airfare prices in years. However, the weaker Australia and New Zealand dollar will most likely result in a lower choice of Launched a sales incentive campaign with Australian and New Zealand online wholesaler, Excite accommodation standards while travelling. Holidays, in conjunction with SMTT’s Australia and New Zealand Sales Mission. Each week, top selling agents of Santa Monica room nights received $200 in Witchery vouchers. The campaign The Australian and New Zealand markets consist of two key was promoted via the Excite Holidays database of 9,500 and three agent events. Room nights retail groups – Flight Centre Travel Group and Helloworld increased 53% and revenue increased 95% for the same period YOY. Travel Group, which combined account for approximately 65% of the market share. In Australia, the travel agent still PUBLIC plays an important role in the booking process, accounting for approximately 50% of business. IN-MARKET ACTIVITIES AND STATS RELATIONS

Exhibited at Flight Centre Expos in Australia and New Zealand with a combined attendance of Australian Market 20,256,320 40,540 (bottom right photo). • 85% of travel to the U.S. from Australia originates from Circulation 3 states; NSW (Sydney), Victoria (Melbourne), and Exhibited at the Discover America Agent Expo held across two New Zealand cities - Christchurch Queensland (Brisbane). and Auckland - with a record attendance of 340 agents. • Visitor numbers to the U.S. in 2014 were a record high 1.28 million (a YOY increase of 6%). Conducted four events during SMTT’s sales mission and met with 135 agents in market. • Peak travel months: September, followed by May, June and December. $3,630,504 • Over 54% of Australian visitors to the U.S. visit California. Publicity value • The #1 activity for Australians when holidaying in the U.S. is shopping, closely followed by sightseeing. • 14.5% of Australians (2.8 million) would like to take a holiday to the U.S. in the next two years, up from 10.4% five years ago.

WITCHERY CONTEST

New Zealand Market • Greater Auckland makes up the majority of the travel to the U.S. Combined with Wellington and Christchurch, the three cities account for 67% of travel to the U.S. • Visitor numbers to the U.S. in 2014 were a record high 260,000, which is a massive YOY increase of 24.6%. • Peak travel months: June to September, followed by April, May, and December. • 67% of New Zealanders (aka Kiwis) visit California. Win the • 82,000 of Kiwis intend to travel to the U.S. in the next 12 ULTIMATE months. Women’s Fitness, January 2016 12 13 ESCAPE FLIGHT CENTRE EXPO

BRAZIL BRAZIL INFO \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ TRADE

Brazil has consistently experienced strong growth in luxury CAMPAIGNS ACTIVATED consumption during the past decade, with a growth slowdown NUMBERS in 2015 due to political uncertainties. The main challenge has been consumer confidence, which is expected to return SMTT partnered with tour operator Teresa Perez to launch a sales incentive campaign awarding their once political scandals have dissipated. The long-term outlook 350 top three selling agents of Santa Monica hotels with new bikes (bottom right photo). The campaign for Brazil as a consumer market remains positive, as affluent resulted in a 100% increase YOY in Santa Monica room nights booked. Brazilians will continue to travel frequently. 2016 is expected to Sales calls/trainings in have a slow recovery with higher expectations in 2017. market Selections (tour operator) distributed 30,000 Santa Monica brochures at luxury Iguatemi malls and to clients of Iguatemi São Paulo, JK and Brasilia. Room nights booked in Santa Monica through Selections has increased 20% YOY. 2 Primetour (tour operator) featured Santa Monica in its “Travel Wishlist” brochure; 35,000 copies were sent to clients and inserted into luxury magazines. Primetour also promoted Santa Monica in its “Travel Trade shows in market Experiences & Celebrations” book, distributed at Travelweek São Paulo, Lide, Golf Club Event, Rimowa While Brazil is home to 40% of Latin America’s HNWI Store, Harpers’ Bazaar Brides and Martha Medeiros Brides events. Primetour has seen a 30% (individuals with more than $1 million in financial assets), this increase YOY in room nights booked in Santa Monica. segment has been overshadowed by the recent currency devaluation. This devaluation has allowed Brazilian export Partnered with Sonhos a Dois (tour operator) to market Santa Monica as a honeymoon destination at companies to enjoy higher revenue and income (Source: Bain Casar 2016, one of the leading wedding events in Brazil, connecting newlyweds to luxury suppliers. Consulting and Wealth Management). Santa Monica was promoted via brochures and Sonhos a Dois’ social media channels, website and e-newsletter, sent to 10,000 clients. As a result, room nights booked in Santa Monica have PUBLIC increased 20% YOY. RELATIONS IN-MARKET ACTIVITIES AND STATS Brazilians rely heavily on travel agents to select and book hotels. While consumers are starting to plan and book their 103,917,632 SMTT sponsored a bike day event in conjunction with Travelweek São Paulo, where attending travel 309% Circulation agents and hoteliers were invited to explore the city on a guided bike ride with Teresa Perez. trips online, travel agents still play a key role in Brazil.

Conducted a week-long sales mission in São Paulo and Rio de Janerio consisting of 16 meetings The recent bankruptcy of four major tour operators in 2015, and training of 220 travel agents. During the mission, SMTT participated in a farm-to-table event with including top luxury tour operator Designer Tours, has shaken Teresa Perez in São Paulo (bottom left photo) as well as a bike event with agents in Rio de Janeiro to travel agents’ confidence and allowed for a partial comeback of generate awareness for Santa Monica’s organic food culture and active lifestyle. Leading Hotels of the World (LHW), as of November 2015. $560,200 SMTT participated in Travelweek São Paulo, attended by over 2,000 high-end buyers and agents. In mid-January 2016, the Brazilian Government announced a Publicity value new 25% tax on tourism related wire transfers (with exceptions for health and educational trips). This placed further pressure on tour operators, who were forced to pass this cost on to the consumer. As a result of the increased wire transfer tax, some SAO PAULO CLIENT EVENT consumers shifted business to LHW channels and hotels, which accept pre-arrival payments via debit or credit card, and a significantly lower tourism tax rate of 6.38%.

As of March 1, 2016, President Dilma Rousseff reduced tourism wire transfer taxes to 6.38%, expected to stimulate trips abroad across all channels (Source: Leading Hotels of the World distributed to hoteliers Road Show 2016). Made Magazine, March 2016

14 TERESA PEREZ INCENTIVE CAMPAIGN 15 UNITED KINGDOM/IRELAND UNITED KINGDOM/IRELAND INFO \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ TRADE NUMBERS CAMPAIGNS ACTIVATED

SMTT partnered with the United Kingdom travel agency, Travel Counsellors, on a dedicated 130 The United Kingdom is the fastest growing economy in the consumer and internal newsletter along with a 30-minute interview broadcast which was streamed developed world. The luxury market has remained strong Sales calls in market to 850 home-working travel agents. Within the campaign month, Travel Counsellors reported throughout the recession and it continues to flourish. In the a 61% increase in room nights booked in Santa Monica as well as a 126% increase YOY in Digital Luxury Group’s World Luxury Index, Britain was the Santa Monica room nights. second fastest-growing market for luxury travel, up 8.5%, 2 behind only Russia at 12.8%, and ahead of China’s 3.3.% Launched an incentive campaign with tour operator/travel agency Flight Centre and their expert growth. Trade shows in market arms Infinity Travel and Round the World Experts. The incentive was kicked off with a film premier in partnership with Universal Studios and Los Angeles Tourism for 60 Flight Centre agents. The incentive was promoted via blog posts, newsletters and social media through Flight Centre. Additionally, Santa Monica-specific sales trainings were conducted at 36 Flight Centre stores and the Round the World Experts office. The activities were picked up in the Travel Trade Gesete publication and newsletter. Flight Centre reported a 107% increase YOY in room nights booked in Santa Monica. PUBLIC With the 90th anniversary of Route 66, SMTT partnered with Bon Voyage, a leading USA Over the last six months, the U.S. dollar exchange rate has specialist tour operator known for their Toure 66 packages. A competition was launched in 55 continued to fluctuate against the GB pound. It peaked in Ed’s Diner locations throughout the United Kingdom. As of April 2016, there have been over 2014 to 1.7 but has since returned to levels around 1.5. The RELATIONS 31,200 contest entries and over 52,100 website page views. fluctuation is within the usual parameters of activity and is not expected to impact travel unless it remains above 1.7 or below 1.5 for a sustained period of time. IN-MARKET ACTIVITIES AND STATS 11,611,423 Circulation

SMTT traveled to the United Kingdom to exhibit at the 2015 World Travel Market (WTM) in partnership with Visit California (bottom left photo). Over the six days, SMTT conducted meetings with key media and trade partners. During the annual United Kingdom and Ireland sales mission, SMTT completed 15 training 102% $1,099,498 sessions (bottom right photo), a Unite USA trade show with 21 product managers meetings, and The Association of British Travel Agents (ABTA) reports that Publicity value a Santa Monica-themed client event attended by 150 United Kingdom-based clients. the annual family holiday of seven nights or more overseas is expected to continue to rise. ABTA has also reinforced that long-haul travel will become more affordable with the removal of Air Passenger Duty; this is expected to save United Kingdom passengers 200 million pounds a year.

WORLD TRAVEL MARKET

The United Kingdom is one of California’s leading and most mature international markets with a high annual spend of $905 million by 686,000 visitors in 2014 and an average of $1,319 per trip. (Source for all above information: Visit California)

Women’s Health, March 2016

16 UNITED KINGDOM SALES MISSION 17 FRANCE FRANCE INFO \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ TRADE NUMBERS

CAMPAIGNS ACTIVATED 121 Sales calls in market SMTT partnered with Le Printemps and Le Printemps Voyages travel agency on the wedding event of the season to promote Santa Monica as a honeymoon destination and encouraging France has long been one of California’s leading international attendees to register for their honeymoon to Santa Monica with Le Printemps Voyages. More than markets. Visitation from France to California is expected to 1 850 clients participated in this event. A Santa Monica detox bar created pre-and post-promotion grow by 14.3% through 2018. California’s market share for for Santa Monica through newsletters, videos, and social media (bottom left photo). Trade show in market the French market is 27.4%. Worked with Le Printemps Voyages to feature Santa Monica via a mini guide, which was In 2014, 445,000 French visitors arrived in California, distributed to 30,000 customers. SMTT continues its partnership with Le Printemps and Le spending $786 million total or an average of $1,765 per trip. Printemps Voyages throughout 2016. Domestic terror attacks and the ongoing instability of Partnered with Jetset Voyages to provide a Santa Monica advertisement in the 2016 brochure, traditional mid-haul vacation destinations in North Africa which is distributed to 1,500 travel agencies and has a total circulation of 70,000. continue to focus attention of French travelers on the value of PUBLIC safer destinations such as California. To promote Santa Monica as a stop on the way to Tahiti, SMTT partnered with Air Tahiti Nui on a sales challenge, which was promoted to all travel agent networks through newsletters, website activation and magazine distribution. This was also followed up with five in-office sales trainings. RELATIONS

IN-MARKET ACTIVITIES AND STATS 400,000 Circulation In 2013, French visitors stayed an average of 9.3 days. Participated in IFTM/Top Resa as a co-exhibitor in the Visit California booth where over 800 contacts were reached. IFTM Top Resa is a four-day international tourism industry show held in Paris that attracts all clients involved in outbound tourism. Participated in the Visit California Paris and Lyon sales mission meeting with B2B clients and $174,500 media reaching over 300 clients (bottom right photo). Publicity value

Despite a strong dollar, the encouraging messages from the 2015 IFTM Top Resa trade show booking figures are still extremely positive for the next 12 months. The French economic growth forecast will be slightly higher than expected SANTA MONICA DETOX BAR with +1.1% (2105) and +1.6% (2016).

The average unemployment rate in metropolitan France stands at 2.9 million people – 10% of the active population – which is the same as the previous quarter. (Source for all above information: Visit California) The Good Life, June/July 2015

18 VISIT CALIFORNIA SALES MISSION 19 GERMANY GERMANY INFO \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ TRADE

CAMPAIGNS ACTIVATED NUMBERS

SMTT Partnered with DERTouristik on a multilayered campaign including promotion of Santa Monica at the Visit USA consumer shows with over 300,000 attendees, web trainings to over Germany is a mature, stable market that has shown steady 1,050 travel agents, and an online campaign promoting Santa Monica on the Meiers Weltresisen visitation to California during the last decade. In 2016, it is homepage with a Santa Monica-specific landing page promoted via a newsletter to 11,000 expected that travel to the U.S. will exceed two million German recipients. Meiers Weltresisen has seen a 23% increase YOY in room nights booked in Santa visitors for the first time in history. Monica. 157 Sales calls in market California attracts more than one in five Germans traveling to CRD, the leading specialist tour operators for tailor-made trips to the North America, created a the U.S. Growth is forecasted at 16.3% from 2014-2018. 100% California microsite to promote Santa Monica, Greater Palm Springs, and Santa Barbara. The campaign was promoted through the CRD homepage, a newsletter to 40,000 subscribers, social media posts along with a Google ad-word campaign. For a one-month period this resulted in over 14,400 visits to the microsite. This campaign was additionally supported by SMTT’s 1 participation in the CRD open house event, which over 12,200 consumers attended. CRD has seen over 8% increase YOY in room nights booked in Santa Monica. Trade show in market

IN-MARKET ACTIVITIES AND STATS Beach holidays continue to be the preferred way of spending main holidays followed by roundtrips, city breaks, culture and adventure vacations. Co-exhibited at the Visit USA Roadshow in four German citites, training a total of 283 travel agents (bottom left photo).

Participated in a sales mission with Visit California to Hamburg and Hannover to conduct tour operator trainings, product manager meetings and participation in the DerTouristik Program Presentation, a two-day show with over 1,500 travel agents in attendance (bottom right photo). Watch Traveled to Berlin, Germany to exhibit at the leading travel trade show, ITB Berlin. In partnership for public with Visit California, SMTT conducted meetings with key travel trade partners and product Vacations and travel remain one of Germans’ most important managers over the four days. leisure activities. While the majority of German travelers prefer package tours, these travelers are very adventurous and like to relations get off the beaten path.

Germans’ desire to travel increased in 2015 from 53% to 57% results in compared to the previous year, and more people feel both VISIT USA ROADSHOW sufficiently financially secure and have available time to take a holiday. our 2016/17 report!

More long haul trips are expected and the U.S. remained the top overseas destination in 2014 with 1.9 million German visitors. (Source for all above information: Visit California)

20 VISIT CALIFORNIA SALES MISSION 21 CHINA CHINA INFO \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\

CAMPAIGNS ACTIVATED TRADE

SMTT launched a simplified and traditional Mandarin landing page on SantaMonica.com to NUMBERS provide an overview of Santa Monica to Chinese tour operators, agents and travelers. The landing Currently, the majority of travel from China to the U.S. is page (santamonica.com/chinese) highlights the top reasons for Chinese visitors to stay in Santa packaged tours, however, there has been a significant and Monica, including its fresh, healthy dining scene, walkable neighborhoods and proximity to LAX accelerated increase in the number of younger, wealthier and well-known universities such as USC, UCLA and LMU. Chinese who travel independently. Travel is Chinese consumers’ preferred leisure activity, and 29% of Chinese Launched WeChat and Weibo social media platforms to engage the Chinese trade and travelers to the U.S. choose October or Chinese New Year as consumers and to promote the benefits and added value of staying in Santa Monica. SMTT plans their travel season. August (23%), July (22%) and May (18 %) 1 to enhance its WeChat account with additional content and features such as sample itineraries are the other busy months for travel. Thus, launching campaigns and a concierge service to provide recommendations to Chinese visitors. SMTT will also partner two to three months before each peak travel season (summer, Trade show in market with key influencers to promote Santa Monica via social media. National Day Golden Week and Chinese New Year) provide the best opportunity to generate bookings. MARKET ACTIVITIES

Joined the Visit California Sales & Media Mission to Beijing and Shanghai and participated in trade & media appointments, agency visits, and training seminars to educate travel agents and the industry about Santa Monica. SMTT also met with top travel trade decision makers and media China’s middle and upper class spend 19% of their disposable influencers from both cities and nearby regions. income on overseas travel – much higher than any other country. Newly affluent Chinese place greater emphasis on Hosted a luncheon in for over 30 top tour operators and media serving the acquiring things, with the majority (58%) citing shopping as As we ramp Chinese market (bottom left photo). SMTT staff presented the advantages of basing oneself the top consideration for booking a trip. 39% of their spending in Santa Monica during a Los Angeles stay and also conducted a survey which revealed key in California is used for gifts and souvenirs – higher than any takeaways regarding business that is currently booked by local Chinese receptive operators. other country. up our China SMTT also hosted a FAM for the group to allow them to experience Santa Monica firsthand.

Co-hosted a China Ready Seminar with Visit California and China Union Pay where over 70 efforts, stay attendees learned about how they can prepare for Chinese visitors, understand the Chinese market and culture, and serve its travel needs (bottom right photo). tuned for Collaborated with and the City of Santa Monica to co-host a delegation of Generally speaking, Chinese consumers are similar to other Directors, District Mayors and other senior officials from Nanjing. SMTT staff provided an overview consumers around the world: they prefer a high quality, of Santa Monica’s attractions, shopping, dining and hotels. comfortable environment, and reasonable price. There are public relations two groups of consumers in China: Developed (25%) and Developing (75%). While price is the number one priority for the Developing group, the Developed group prefers high- results in the SAN GABRIEL VALLEY LUNCHEON end brands and views them as a way to express their newly achieved status in society. Along those lines, China is now coming years! number two in terms of revenue in the luxury category and is expected to be number one soon.

In the long-term, the GDP Annual Growth Rate is projected to trend around 5%, 3% and 3.3% in 2020, 2030 and 2050, respectively. Although the exchange rate is in decline, no negative effects on tourism are expected, however it could impact tourists’ level of spending in the U.S. (Source for all above information: Visit California)

22 CHINA READY SEMINAR 23 NORTH AMERICA

SOFT SEASON CONSUMER TRADE CAMPAIGN \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ NUMBERS In an effort to drive demand during Santa Monica’s MARKET ACTIVITIES soft season (October–January), SMTT targeted 70 New York City, , Chicago, and Trade/MICE sales calls Toronto with programmatic digital display ads and SMTT continues to build important relationships with receptive tour operators. targeted search engine marketing. The campaign Receptive tour operators are local tour companies that specialize in tourism was designed to encourage visitors to click through to Santa Monica partner hotel websites 7 experiences and manage products and services for incoming visitors most Trade/MICE trade shows often booked through international tour operators. Receptive tour operators to book stays in Santa Monica during the soft play an important role in the packaged travel industry. season.

SMTT and destination partners participated in SMTT’s annual Halloween The campaign resulted in 225,900 visits to the sales calls to visit local receptive operators (bottom right photo). Santa Monica Hotels landing page and 31,851 click throughs to partner hotel websites. The Participated in the North American Journey (NAJ) Receptive Tour Operator display campaign delivered 50,701,930 targeted PUBLIC (RTO) Summit in Los Angeles and Orlando to meet with over 40 receptive impressions and 118,881 clicks to the landing tour operator clients. page. The SEM campaign delivered over 78,000 additional clicks to the landing page. RELATIONS SMTT participated in IPW 2015 where SMTT and destination partners conducted meetings with over 132 clients from all global markets over a 16,826,809 three-day trade show period (bottom left photo). Additionally, SMTT hosted Circulation their annual IPW client appreciation event for 50 top global clients and media.

Hosted nine MICE client events throughout the year, with an attendance of nearly 40 top meeting and incentive professionals. $529,511 Publicity value

IPW TRADE SHOW

Travel + Leisure, March 2016 24 25 HALLOWEEN SALES CALLS LOCAL ACTIVITY

Santa Monica celebrated its 4th annual Eat Well Week January 11-17, EAT WELL WEEK 2016. In recogintion of California Restaurant Month, 16 Santa Monica restaurants created specially-crafted dishes incorporating the same farmers Santa Monica Travel & Tourism recognizes that the community - residents and market ingredient – artichokes. Diners voted for their favorite Eat Well Week employees alike - is an integral part of a thriving destination. Learn more about artichoke dish, and three winning restaurants were crowned: The Upper West, Inotheke and eLOVate Vegan Kitchen. SMTT’s local activities from partner programs to community campaigns. The local campaign in partnership with Visit California’s California Restaurant Month, secured over 33 million print, online and broadcast impressions in local, regional and national media outlets, with an estimated publicity value of $363,475. The social media promotion for Eat Well Week garnered an additional reach of over 1.2 million on Facebook, Twitter, and Instagram combined. A huge thank you to all the amazing chefs who participated! I AM SANTA MONICA “I Am Santa Monica” is an interactive business workshop designed to encourage (photo from @inothekela Instagram) and empower Santa Monica businesses and their employees to become better informed about Santa Monica and all it has to offer.

A free 3-hour interactive learning workshop and tour of Santa Monica has been designed specifically to inform and educate local employees about destination EAT WELL WEEK Santa Monica, with a focus on customer service and hospitality training. Trained individuals become “Official Santa Monica Ambassadors” and are armed with a database of facts, figures, and “Did You Know” anecdotes about Santa Monica for use in customer interaction. To date, we have certified over 2,800 Santa Monica Ambassadors through the I Am Santa Monica program. If you are not an Official Ambassador, sign up for a free workshop at santamonica.com/iam

SMTT ROUNDTABLE

EXTRA BEDROOM KICKOFF EVENT

EXTRA BEDROOM The annual Extra Bedroom program is a local campaign that helps orient our residents with hotels during the holiday season by offering discounted

I AM SANTA MONICA WORKSHOP nightly rates for visiting friends and family of Santa Monica residents. The 2015/16 Extra Bedroom program took place November 16, 2015 through January 22, 2016 with 12 participating hotels offering varying discounts, some up to $300 off regular rack rates. Additionally, this past year SMTT held the first annual Extra Bedroom kick-off event (pictured above). The local Santa Monica resident-only event was a family-friendly SMTT hosts various tourism roundtable sessions, which bring our destination PARTNER ROUNDTABLES pajama party held at Loews Santa Monica Beach Hotel pool deck. The partners, restaurants, attractions, retail and hotels together to discuss event garnered nearly 100 resident attendees and press coverage timely topics related to destination Santa Monica and SMTT. In fiscal year with an estimated reach of 241,362 people. Thank you to all of our 2015/16, we conducted two roundtables with nearly 50 attendees. hotel partners and Spin PR Group for their support and participation. Topics included: MICE Focus Group Results and Advertising/Marketing Opportunities. Look for emails from SMTT regarding upcoming roundtables!

26 27 DIGITAL UPDATES Have you updated your SantaMonica.com WHAT ELSE listing page? CAN YOU SantaMonica.com Statistics \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ Numbers and statistics are based on July 1, 2015 through April 1, 2016 LEVERAGE? Did you know you get a FREE business listing \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ page on SantaMonica.com? Make sure it stands 1) Connect with us on social media! out and is up-to-date by logging into the Santa Tag us in any great media coverage on Monica Travel & Tourism Partner Portal. your business - we’d be happy to share it - and feel free to repurpose and share any content we post on social media as 85K 2.07 1:48 well. See our handles listed below. Monthly site visits Pages views per visit Average time on site 2) Submit events for inclusion on the SantaMonica.com Events Calendar.

3) See page 32 for more ways to work with SMTT.

SantaMonica.com’s top 5 landing pages Information about visitors to SantaMonica.com: (besides the homepage) are: What is the Santa Monica Travel & Tourism (SMTT) Partner Portal? • Predominantly ages 25-44 years old SOCIAL 1. Hotels • 59.5% female and 40.5% male The SMTT Partner Portal is an effective promotional tool for 2. Events Calendar • Desktop and mobile use are nearly tied (47% businesses to build a free, dedicated business listing page 3. Shopping desktop vs. 43% mobile) on SantaMonica.com, reaching 70,000+ monthly users and MEDIA 4. Must Do Attractions • Top three international markets for site visitation are increasing clicks to their website. 5. Restaurants Canada, United Kingdom and Australia as of April 2016 In fact, partners who optimize their listing page through the Partner Portal are receiving as much as 10x more website referral traffic compared to those who are not!

Through the Partner Portal, tourism-serving businesses with a valid City of Santa Monica business license have the ability to 38,805 24,904 review, update and maintain the information displayed on their Facebook Fans Instagram Followers SantaMonica.com Awards business landing page, including: (17% increase YOY) (196% increase YOY) \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ • Business name, address, phone number and website • Business description and promotional offers • Amenities • Logo, photos and/or videos • Social media links

2015 WebAward 2015 Davey Awards To request access to the Partner Portal, please complete the 28,993 2,346 Twitter Followers Pinterest Followers Outstanding Website Silver Winner online request form at santamonica.com/partner-portal. (23% increase YOY) (21% increase YOY) For any questions, email [email protected].

28 29 BRAND REFRESH

FROM LAX TO RELAXED IN NO TIME. In May 2015, Santa Monica Travel & Tourism launched a refreshed destination brand with new assets including new brand photography, an updated logo, new brand style guide, redesigned SantaMonica.com, new Official Visitor Guide and Official Visitor Map and more. Examples of the brand refresh in action are featured below.

VISITOR SERVICES Clockwise from top left:

Rebranded mobile visitor center Santa Monica is just eight miles from Los Angeles International Airport • (LAX), yet a world away. Base your stay beachside with 38 hotels, from luxury to budget, all centrally located to . New Main Street Visitor Information Center storefront design Visit santamonica.com/hotels • visitsantamonica gosantamonica seesantamonica • Brand new merchandise (Want to purchase brand merchandise? Contact Rachel Lozano at [email protected] for discounts.)

SALES AND MARKETING Clockwise from top left: • Redesigned SantaMonica.com website • Suite of new print and digital advertisements • Rebranded collateral including new Official Santa Monica Visitor Guide and Visitor Map • Updated trade show booth • Rewrapped Santa Monica Free Ride shuttles

30 31 HOW TO WORK WITH SMTT SANTA MONICA VISITOR TOURISM DICTIONARY INFORMATION CENTERS AND ADR Average Daily Rate. One of the core indicators - along WHAT THEY CAN DO FOR YOU with other metrics such as occupancy rate and revenue \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ per available room - used to measure the operating performance of a lodging unit such as a hotel or motel. Santa Monica Travel & Tourism offers a variety of free as well as fair share Santa Monica Visitor Information Centers partner opportunities to raise awareness of your business among potential DMO visitors. The more collaborations you opt-in for, the better equipped you will are your source for all things Santa Monica, Destination Marketing Organization. A company or be to sustain and grow your tourism business. To learn more about any of and we are here not only as a resource to other entity involved in the business of increasing tourism to a destination or improving its public image. these programs, visit santamonica.com/tourism-biz guests, but to you - our travel partners and residents. All of our Visitor Centers provide: For example, Santa Monica Travel & Tourism and Visit California are considered DMOs.

• Friendly and knowledgeable staff FAM • Official Visitor Guides and Maps Familiarization Tour. A complimentary or reduced- Participate in trade Host travel writers, • Foreign language line rate travel program for pre-qualified journalists, travel agents, airline employees and top travel buyers, shows and sales travel agents and • Information on attractions, tours, missions FAM groups designed to acquaint participants with specific hotels, dining, museums, galleries and destinations or suppliers and to stimulate the sale of entertainment travel. • Santa Monica-inspired merchandise FIT • And more Individual travel in which a tour operator has arranged blocks of rooms at various destinations in advance Advertise in SMTT Attend roundtables Volunteer and for use by individual travelers. These foreign travelers Official Visitor We welcome you to visit our Walk-in and other events welcome visiting travel independently usually by rental car or public Publications with Visitor Information Center on Main Street hosted by SMTT** groups** transportation. international distribution and see what is new! We look forward to collaborating with our local partners to MICE offer Santa Monica merchandise in their Meeting, Incentive, Conference/Congress, & Exhibition. locations as well as utilize these items to An internationally-used term for the events industry. enrich and expand their welcome amenity TMD Attend “I Am Santa Distribute your Nominate your programs and for locals to use for family Tourism Marketing District. The Santa Monica TMD Monica” Workshop business’ brochures at employees/colleagues includes all lodging businesses located within the to become an Official reunions, weddings, etc. SMTT Visitor Centers for a Thelma Parks boundaries of the City of Santa Monica with an Santa Monica Tourism Spirit Award** average daily rate of $100 and above. Santa Monica’s Ambassador** Have any questions? hotels have chosen to assess themselves to generate Email [email protected] stable, dedicated funding specifically for tourism promotion. There are no new taxes or government spending required for the Santa Monica TMD.

SANTA MONICA VISITOR CENTERS TOT Upload information Submit seasonal Stay up-to-date and Transient Occupancy Tax. Tax placed on hotel/ on your free specials, included on subscribe to SMTT’s Walk-In Visitor Information Center motel room rentals that collects into City of Santa SantaMonica.com SantaMonica.com monthly Tourism 2427 Main Street Monica’s general fund, providing funding for street listing page via the and other distribution Update newsletter** Partner Portal** channels** improvements, police and fire, parks and libraries. Pier Shop & Visitor Center 200 TOUR OPERATOR A company that creates and/or markets inclusive tours Visitor Information Kiosk and/or performs tour services. 1400 Ocean Avenue TRAVEL TRADE Optimizing Your Tourism Business Visitor Information Cart The collective term for tour operators, wholesalers and = (** denotes a free service) 1300 Block of Third Street Promenade travel agents. Mobile Visitor Center WHOLESALER Locations Vary Develops and markets inclusive tours and individual travel programs to consumers through travel agents. For location hours, visit santamonica.com Wholesalers don’t sell directly to the public. 32 33 Santa Monica Travel & Tourism 2427 Main Street Santa Monica, CA 90405 310.319.6263 santamonica.com

Visit Santa Monica

GoSantaMonica

SeeSantaMonica

34