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Expected Summer Leisure Trips VIRTUAL TOWN HALL MEETING Tuesday, May 4, 2021 WELCOME: SCOTT WHITE & TOM TABLER ECONOMIC IMPACT 2019 2020 Economic Impact $7.5 BILLION $3.5 BILLION (-53%) 53,572 JOBS 32,216 JOBS (-40%) Visitors 14.1 MILLION VISITORS 8.6 MILLION (-39%) 7.7 MILLION DAY VISITORS 5.0 MILLON DAY VISITORS (-35%) 6.4 MILLION OVERN 3.6 MILLON OVERNIGHT VISITORS (-44%) *SOURCE: TOURISM ECONOMICS 2021 STUDY DESTINATION DEVELOPMENT PLAN Improve Access: Grow Air Increase Midweek Business & Off- Service & Add Rail Service season Business (June-September) Grow International & Focus on Key Pillars: Wellness, Arts & Culture, Group Business Outdoor Adventure & Sustainability Expand Regional Collaboration, Enhance Visitor Experience through Workforce Development & Attractions, Events, Wayfinding & Broadband Ambassador Program ADDITIONAL FLIGHTS & LARGER AIRCRAFT CONTRIBUTING TO GROWTH Daily Flight Change; 2017 to 2021 PSP: AVERAGE FLIGHTS PER DAY 2021 Flights 2017 to 2021 By quarter; January 2017 to December 2021 Quarter 1 48 +6% 70 Quarter 2 35 +23% 60 Quarter 3 36 +95% 50 Quarter 4 46 +31% 40 Annual 41 +30% Daily Seat Change; 2017 to 2021 30 2021 Seats 2017 to 2021 20 Quarter 1 5,383 +0% 10 Quarter 2 3,980 +21% - Quarter 3 3,681 +102% 1Q 2Q 3Q 4Q Annual Quarter 4 5,050 +19% 2017 2018 2019 2020 2021 Annual 4,520 +23% PSP PASSENGER ACTIVITY PSP MARCH COMPARISON PSP YTD TOTAL PASSENGER 2019 2020 2021 201,350 113,166 107,577 214,477 401,972 -43.7% -4.9% 2021 2019 -46.6% Category 1 0 50,000 100,000 150,000 200,000 250,000 2021 2020 2019 COACHELLA VALLEY ARENA: NICK FORRO THE RIGHT LEADERSHIP TO MANIFEST THIS VISION 9 CONFIDENTIAL: FOR DISCUSSION PURPOSES ONLY 10 CONFIDENTIAL: FOR DISCUSSION PURPOSES ONLY STRATEGIC PARTNERSHIP WITH THE POWERHOUSE PARTNER IN THE MUSIC INDUSTRY CAPABLE OF DELIVERING THE MOST EXCITING ENTERTAINMENT WORLD’S LARGEST LIVE OWNS THERE IS A EVENTS PROMOTER WITH THE TRUST OF THE LIVE NATION CONCERT EVERY 30K+ EVENTS WORLD’S BIGGEST 18 MINUTES IN 40 COUNTRIES ANNUALLY ARTISTS AND THEIR MANAGEMENT AROUND THE WORLD 11 $250M INVESTMENT TO CREATE THE FIRST OF ITS BRINGING AN KIND IN THE GREATER COACHELLA VALLEY AREA UNPARALLELED VENUE TO THE COACHELLA VALLEY 12 BRINGING YEAR-ROUND ENTERTAINMENT TO THE HEART OF THE COACHELLA VALLEY HIGHLY VISIBLE AND ACCESSIBLE FROM THE 10 FREEWAY (COOK ST EXIT) Mixed-use cultural center providing: • employment opportunities • around the clock activity • entertainment • community-oriented gathering spaces and amenities 13 7 ROUTING SEATTLE, WA 6 ALL ROADS LEAD FROM C O A C H E L L A VALLEY: THIS NEW ROUTING MODEL PORTLAND, OR WILL SERVICE THE MUSIC NEEDS ON THE WEST COAST 5 4 SACRAMENTO, CA SAN FRANCISCO, CA OVG Arena 3 LAS VEGAS, NV OVG Arena Alliance Partner 2 1 Pending New Development LOS ANGELES, CA COACHELLA VALLEY, CA COACHELLA VALLEY ARENA 14 CONFIDENTIAL: FOR DISCUSSION PURPOSES ONLY IN TOTAL, COACHELLA VALLEY ARENA WILL DELIVER OVER 100+ NIGHTS OF LIVE ENTERTAINMENT & EXPERIENCES 40 30+ 35+ CONCERTS FAMILY & OTHER HOCKEY GAMES EVENTS B R U N O M A R S 15 CONFIDENTIAL: FOR DISCUSSION PURPOSES ONLY WHERE THE NOSEBLEED SECTION DOESN’T EXIST OUTSTANDING, UNOBSTRUCTED VIEWS FOR UP TO 11,500 FANS ON TWO LEVELS OF SEATING 16 INNER BOWL FOR HOCKEY 17 SEATTLE KRAKEN – NHL’S 32ND FRANCHISE 19 CONFIDENTIAL: FOR DISCUSSION PURPOSES ONLY AMERICAN HOCKEY LEAGUE OVERVIEW 20 CONFIDENTIAL: FOR DISCUSSION PURPOSES ONLY PACIFIC DIVISION OVERVIEW 21 CONFIDENTIAL: FOR DISCUSSION PURPOSES ONLY DESTINATION ANALYSTS: ERIN FRANCIS-CUMMINGS WHAT TRAVELER SENTIMENT REVEALS ABOUT THE ROAD FOR TRAVEL FROM METHODOLOGY • Weekly tracking survey of a representative sample of adult American travelers in each of four U.S. regions • 1,200+ fully completed surveys collected each wave • New travelers surveyed each week • Confidence interval of +/- 2.8% • Data is weighted to reflect the actual population of each region • March 2020-Present (60 Waves) 27 CURRENT TRAVEL SENTIMENT A LOOK BACK: 69% 83% 70% Travel Activities Avoiding Cancelled Unsafe Travel a Trip Described Travel in 1-Word: Change the Types of Destinations They Would Visit in the Future EXPECTATIONS FOR THE CORONAVIRUS OUTBREAK (MARCH 2020-NOW) 80% 70% “Worse” or “Much worse” 60% 61.5% 50% 40% 30% 20% 10% 18.5% 0% Question: In the NEXT MONTH, how (if at all) do you expect the severity of the coronavirus situation in the United States to change? In the next month the coronavirus situation will ________ EXPECTATIONS FOR THE CORONAVIRUS OUTBREAK (WAVES 1-59) 80% 70% 60% 61.5% 50% 40% 44.3% 34.7% 30% 18.5% 20% 21.8% 10% “Better” or “Much better” 0% Question: In the NEXT MONTH, how (if at all) do you expect the severity of the coronavirus situation in the United States to change? In the next month the coronavirus situation will ________ NO MAJORITY OF TRAVELERS PERCEIVES TRAVEL & LEISURE ACTIVITIES AS UNSAFE PERCEPTIONS OF TRAVEL ACTIVITIES AS UNSAFE % Somewhat unsafe or Very unsafe (AVERAGE SCORE FOR ALL ACTIVITES TESTED) 60% 57.6% 55% 50% 45% 31% 40% 35% 30% 25% Question: At this moment, how safe would you feel doing each type of travel activity? CONFIDENCE IN ABILITY TO TRAVEL SAFELY Very confident 17.2% 43.3% Confident 26.1% Somewhat confident 33.4% Not very confident 19.5% Not at all confident 3.7% 0% 20% 40% Question: How confident are you that you can travel safely in the current environment? P A G E 35 TRAVEL GUILT Strongly agree 7.9% 28.2% Agree 20.3% Neutral 22.0% Disagree 27.7% 49.8% Strongly disagree 22.1% 0% 20% 40% How much do you agree with the following statement? “I would feel guilty traveling right now.” P A G E 36 TRAVEL STATE-OF-MIND I'm already traveling 18.8% I'm ready to travel, with no hesitations 23.1% I'm ready to travel, but feel some hesitation 33.6% I need a little more time to be ready to travel 19.1% I need a lot more time to be ready to travel 5.4% 0% 50% Question: When it comes to getting back out and traveling again, which best describes your current state of mind? P A G E 37 More Excitement Less Excitement More Excitement Less Excitement 40 THE OUTLOOK FOR TRAVEL HAS COMPANY RETURNED TO BUSINESS TRAVEL 60% 56.3% 50% 48.3% 40% 30% 24.2% 26.7% 20% 10% 0% September 4-6 October 2-4 March 5-7 April 16-18 Question: To your knowledge, have people at the company/organization you work for started traveling for business purposes again? THE RETURN TO IN-PERSON CONVENTIONS & MEETINGS AS OF APRIL 11, 2021 Of American Business Travelers Say they Currently have Plans to Attend a Convention/Group Meeting in 2021 AMERICAN TRAVEL DREAMING & PLANNING IN 2021 JANUARY 1—APRIL 18, 2021 ANY TRAVEL DREAMING/PLANNING 80% 74.2% 70% 63.7% 60% 50% Jan Jan Feb Feb March March April April 8-10 22-24 5-7 19-21 5-7 19-21 2-4 16-18 QUESTION: IN THE PAST WEEK, WHICH OF THE FOLLOWING HAVE YOU DONE? (SELECT ALL THAT COMPLETE THE SENTENCE) IN THE PAST WEEK I HAVE ____________ (Base: Waves 43-58. All respondents, 1,206, 1,225, 1,205, 1,206, 1,209, 1,209, 1,216, 1,210, 1,204, 1,209, 1,204, 1,208, 1,202, 1,206, 1,202 and 1,210 completed surveys.) LEISURE TRIPS EXPECTED (NEXT 3 MONTHS) 2.0 1.8 1.6 1.6 1.6 1.5 1.4 1.4 1.4 1.5 1.3 1.1 1.1 1.1 1.0 1.1 1.0 1.1 1.0 0.7 0.5 0.0 Question: HOW MANY LEISURE TRIPS do you expect to take (even if tentatively) during the next three months? I expect to take _______ leisure trips Summer 2021 EXPECTED SUMMER LEISURE TRIPS Zero 28.4% 1 30.6% 2 19.2% 71.6% 3 8.8% 10% 36% March From 4 5.7% 28th 2020 5 or more 7.3% Mean = 1.7 trips 0% 10% 20% 30% 40% 50% Question: How many LEISURE TRIPS do you expect you will take during the summer of 2021? PLANNED SUMMER TRIP ACTIVITIES Dining in Restaurants 45.8% Beaches 44.7% Shopping in Stores 35.6% Hiking, Biking, and/or other Outdoor Recreation 30.0% Historical Sites 24.0% Theme Parks 23.6% Museums 20.9% Attractions 17.1% Concerts, Shows and/or Festivals 15.0% Guided Tours 9.9% 0% 20% 40% 60% Question: Which of the following activities do you plan to do during your trips this summer? (Select all that apply) P A G E 47 IMPEDIMENTS TO SUMMER TRAVEL Safety concerns - risk of contracting the COVID virus 31.1% The pandemic is not 100% over 30.6% Crowds - too many people will be traveling this summer 30.1% Vaccine, testing and/or quarantine requirements for travel 17.0% Personal financial reasons 15.9% Health and safety protocols are too restrictive 15.7% Traveling protocols are too tedious - getting tested, wearing masks… 14.8% Attractions and businesses will not be fully open yet 13.5% Travel is too expensive right now 10.8% Question: Which of the following describe your reasons for not Destinations I want to visit are closed to tourism 8.9% taking MORE leisure trips this Not enough PTO/vacation time 8.6% summer? (Select all that apply) I won't have gotten a vaccine yet 6.1% Sold out/No reservations available 5.6% (Base: Waves 59 data.
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