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COSTA MESA CONFERENCE AND VISITOR BUREAU TM 575 Anton Blvd., Suite 880 Costa Mesa, CA 92626 ANNUAL REPORT FISCAL YEAR ENDING JUNE 2015 TM 2 FISCAL OVERVIEW COSTA MESA CVB ANNUAL REPORT 1 TABLE OF CONTENTS President’s Message from Costa Mesa Conference and Visitor Bureau 5 Fiscal Overview 9 BIA 10 The Impact of Tourism 14 Travel News Update/ U.S. Travel News 18 Trends in Travel 20 Domestic Travel 21 International Travel 23 Partnerships 31 Marketing Overview 35 Marketing Overview: Fiscal Year 2014/2015 36 New Branding 37 TravelCostaMesa.com 39 Social Media 53 Travel Costa Mesa Blog 56 Costa Mesa Email Newsletter 57 Travel Costa Mesa Calendar 58 Paid Media 59 Print Campaign 59 Stay and Get $50 Campaign 60 Valentine’s Day Weekend Getaway Campaign 61 Costa Mesa Restaurant Week 62 TripAdvisor Sponsorship Page & Banner Ads 63 Public Relations 64 International Efforts 65 COSTA MESA CVB ANNUAL REPORT 3 CITY OF THE ARTS™ Surrounded by a richness in culture, shopping and 2013 generated $4.3 billion in state taxes and directly dining, proximity to the Pacifi c Ocean and near supported 965,800 jobs. perfect year-round climate, the City of the Arts™ is in an advantageous position to attract both domestic Hotel renovations and fantastic new dining options will and international guests when traveling to Orange continue to impress overnight guests visiting Costa County. The Costa Mesa Conference and Visitor Mesa. Product improvements include the Ayres Hotel Bureau (Bureau) aggressively markets the city as a & Suites’ inspiring new lobby and business center. The desirable, overnight leisure destination focusing on Marriott guest will experience a refreshed, modern feel the experiences of shopping, the arts and dining. upon arrival in the lobby. The Westin South Coast Plaza Our branding campaigns extend across the western is in the process of a guest room revitalization project United States, and to exciting new territories including due to be completed by May 2015. The Art of Dining Vancouver, China, Mexico and the Middle East. is alive in Costa Mesa with exciting new restaurants to experience such as Pueblo, ST Patisserie and We live and work in a state where more than 200 million SusieCakes at The OC Mix. The famed Din Tai Fung visitors traveled to in 2013. Over $109.6 billion was spent at South Coast Plaza, Boathouse Collective, and classic in travel-related consumer expenses. California had the Southern dishes at Social add to the superb dining largest market share of domestic travel among all 50 diversity of our city. states with leisure travel outpacing business travel. Over 6.5 million international travelers visited California and The Bureau is excited to represent another hotel partner, spent $12.8 billion. International travel led to growth in the BLVD Hotel. As the fi scal year comes to a close, passenger loads at California’s airports. we will also be tapping into a new partnership involving Anaheim Resort Transportation. This transportation The lodging industry within the state of California is very service will allow guests to visit the Disneyland® Resort strong. Statewide occupancy in 2014 reached 72.8%, while staying in Costa Mesa and enjoying shopping, +3.1% and the average daily rate (ADR) was $140.16, dining and the arts. +7.3% from last year. Orange County experienced an occupancy rate of 76.7% in 2014 and an ADR of $135.57, Tourism doesn’t just happen. It is strategic and +6.5% from last year. Participating hotels within the thoughtful. The results are felt throughout the city and Bureau saw an increase of 1.7% in occupancy and 6.6% in impact every one of us. Travelers need to become average daily rate in 2014. engaged in our destination through strategic and tactical branding of the City of the Arts™. As we realize Everyone in the community benefi ts from tourism. our successes from this past fi scal year, the Bureau looks It’s extremely valuable in adding jobs and tax revenues forward to building upon that momentum to attract for local services. All segments of this industry more visitors both domestically and internationally. including accommodations, food and beverage, shopping, attractions and entertainment greatly Paulette Lombardi-Fries benefi t from visitor spending. Travel spending in President, Costa Mesa Conference and Visitor Bureau 4 FISCAL OVERVIEW COSTA MESA CVB ANNUAL REPORT 5 TM The Costa Mesa Conference and Visitor Bureau is a nonprofit corporation formed in 1995 to market the city of Costa Mesa as a desirable overnight leisure destination in Orange County. MISSION STATEMENT The Costa Mesa Conference and Visitor Bureau enhances and promotes the destination brand experience, further increasing visitor spending for industry and community economic viability, sustainability and quality of life. VISION STATEMENT The Costa Mesa Conference and Visitor Bureau is the engaged destination marketing leader, supporting and selling the city’s distinct visitor brand experiences and advocating community tourism benefits. COSTA MESA CVB ANNUAL REPORT 7 FISCAL OVERVIEW 8 FISCAL OVERVIEW COSTA MESA CVB ANNUAL REPORT 9 BIA Participating Bureau Hotels Hotel Name Property Address Business Owner Property Owner Avenue of the Arts 3350 Avenue of the Arts Rosanna Inc. Rosanna Inc. BIA Wyndham Hotel Costa Mesa, CA 92626 3350 Avenue of the Arts 3350 Avenue of the Arts Costa Mesa, CA 92626 Costa Mesa, CA 92626 Ayres Hotel & Suites 325 Bristol Street Newport Country Inn Newport Country Inn Method and Basis of Levy Costa Mesa, CA 92626 & Suites, Inc. & Suites, Inc. 355 Bristol St., Suite A 355 Bristol St., Suite A The proposed method and basis of levying the fund marketing efforts to promote tourism in Costa Costa Mesa, CA 92626 Costa Mesa, CA 92626 assessment against his or her business is set forth Mesa and will sponsor related tourist events that benefit according to City of Costa Mesa Ordinance 95-9, and is the hotel and motel businesses within the City. Best Western Plus 2642 Newport Blvd. James Hsuen James Hsuen as follows: Costa Mesa, CA 92627 & Shang- Pu Lee & Shang- Pu Lee The improvements and marketing to be funded by this 2642 Newport Blvd. 2642 Newport Blvd. The BIA assessment will be used to fund the Costa assessment are outlined in the annual report. Costa Mesa, CA 92627 Costa Mesa, CA 92627 Mesa Conference and Visitor Bureau. The Bureau will Hilton 3050 Bristol St. Ashford TRS CM LLC Remington Lodging Costa Mesa, CA 92626 14185 Dallas Parkway & Hospitality LP Suite 1100 14185 Dallas Parkway Dallas, TX 75254 Suite 1100 Dallas, TX 75254 Revenue Crowne Plaza 3131 Bristol St. Brighton Management 3131 Bristol Property UC, LLC Costa Mesa, CA 92626 1901 Main Street 2711 Centerville Rd. A three percent (3%) levy will be assessed against each New hotel and motel businesses that are interested in Suite 150 Suite 400 of the 11 hotels listed in the annual report, based on the participating in the BIA should contact the City and the Irvine, CA 92614 Wilmington, DE 19808 net revenue from the sale of overnight room stays. Costa Mesa Conference and Visitor Bureau. Holiday Inn Express 2070 Newport Blvd. Narendra B. Patel Narendra B. Patel Business owners shall pay the assessment to the Costa & Suites Costa Mesa, CA 92627 2070 Newport Blvd. 2070 Newport Blvd. Mesa City Finance Department on a monthly basis. A Costa Mesa, CA 92627 Costa Mesa, CA 92627 penalty and interest shall be assessed on late payments. Marriott 500 Anton Blvd. Marriott International Host Hotels & Resorts Costa Mesa, CA 92626 10400 Fernwood Rd. 6903 Rockledge Dr. Bethesda, MD 20817 Suite 1500 Bethesda, MD 20817 Ramada Inn & Suites 1680 Superior Ave. B.D. Inns Inc./Ramada Ltd. B.D. Inns Inc./Ramada Ltd. Costa Mesa, CA 92627 1680 Superior Ave. 1680 Superior Ave. Costa Mesa, CA 92627 Costa Mesa, CA 92627 Residence Inn 881 Baker St. Marriott International BRE Select Hotels Corp. by Marriott Costa Mesa, CA 92626 10400 Fernwood Rd. Dallas, TX Bethesda, MD 20817 The Westin South 686 Anton Blvd. Host Hotels & Resorts CJ Segerstrom & Sons Coast Plaza Costa Mesa, CA 92626 6903 Rockledge Dr. c/o South Coast Plaza Suite 1500 686 Anton Blvd. Bethesda, MD 20817 Costa Mesa, CA 92626 BLVD Hotel 2430 Newport Blvd. Hollywood Corner Inc. Shyamal Patel (joined late Feb. 2015) Costa Mesa, CA 92627 2430 Newport Blvd. 16609 Honeybee Dr. Costa Mesa, CA 92627 Tustin, CA 92782 10 FISCAL OVERVIEW COSTA MESA CVB ANNUAL REPORT 11 Financial Summary Primary Expense Projections Fiscal Year 2014/2015 Fiscal Year 2015/2016 Revenues Actual 2014/2015 Projected 2015/2016 Total Marketing Expense $1,632,518.25 July $208,817.83 $212,994.19 Online marketing/International marketing/Display ads/Email marketing August $226,997.73 $231,537.68 Familiarization tours/Promotions/Print advertising/Sponsorships September $245,329.76 $250,236.36 Video production/Tradeshows/Brochures/Hotel marketing fund October $236,973.30 $241,712.77 Total Employee Expenses $431,928.23 November $191,618.45 $195,450.82 Salaries/Payroll taxes/Workers’ comp/Employee benefits December $196,799.84 $200,735.84 Payroll services/Incentives January $106,092.55 $108,214.40 February $238,441.33 $243,210.16 Total Administrative Expenses $171,696.50 March* $177,174.87 $180,718.37 City collection/Accounting audit/Mileage/Bank charges April* $170,319.60 $173,725.99 Dues & subscriptions/Insurance/Office supplies/Rent/Parking/Postage Telephone/Travel/Meetings & conferences May* $209,313.88 $213,500.16 Total Legal Expenses $100,000.00 June* $163,994.58 $167,274.47 Total: $2,371,873.72 $2,419,311.21 Total Expenses $2,336,142.98 *Projected numbers as BIA checks for these months have not been received. Contingency Fund: $500,000.00 This fund is set aside for natural disasters or unforeseen emergencies.
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