Fiscal Year Report 2014/15 Dear Santa Monica Partner,

It is with great pride in our destination, team members, Board of Directors, Tourism Marketing District Committee, industry partners, and associates that I present our 2014/15 Fiscal Year in Review. For 33 years, Santa Monica Convention and Visitors Bureau (SMCVB) has worked hard to increase visitor expenditures, tourism revenues and local employment opportunities through promotion of Santa Monica as a travel destination. Our charge is simple: to help maintain economic vitality in our ever-changing city. I am extremely proud of the contributions our organization and amazing hospitality partners have made to our community over the past three decades.

Santa Monica’s vital travel industry remained strong and sustained record growth in 2014. Our industry continues to be an economic engine that injects $1.72 billion dollars into the community, employing 13,700 people and generating $45.5 million in hotel tax revenues for essential community services. We are pleased to report that international visitor volume was up 13%, representing 55% of the market share, and our hotels’ average daily rates (ADR) and occupancy are some of the strongest in the region.

Despite this remarkable success, Santa Monica continues to face growing competition in the global market. This Year in Review captures much of SMCVB’s work over the past fiscal year to drive balanced demand for the destination, and fill identified need periods with a priority of overnight hotel visitors who provide the highest spending levels with minimal negative impact to the destination.

One of SMCVB’s proudest successes over the past year is the destination brand refresh that will be unveiled today at our sixth annual Tourism & Travel Summit. This includes a redesigned logo; brand style guide; destination photography; more tools for community partners to utilize; and an entirely redesigned SantaMonica.com with a new hotel booking portal and responsive design. We’re excited about the new approach to our Official Visitor Guide and Map that represents destination Santa Monica and serves our visitors and businesses.

On behalf of the entire SMCVB team, thank you for your support and collaboration. We look forward to continued success in the future!

Sincerely,

Misti Kerns, CMP CDME President/CEO, Santa Monica Convention & Visitors Bureau

WHAT IS SANTA MONICA CONVENTION & VISITORS BUREAU? Santa Monica Convention & Visitors Bureau, Inc. (SMCVB) is a private, non-profit corporation formed in 1982 and is funded by the City of Santa Monica’s general fund and the Tourism Marketing District assessment. Under contract to the City of Santa Monica, the purpose of SMCVB is to promote Santa Monica as a conference, business and leisure travel destination. As a sales and service organization, SMCVB acts as the official tourism marketing representative for local businesses and the community as a whole.

MISSION STATEMENT Santa Monica Convention & Visitors Bureau works to increase visitor expenditures, tourism revenues and local employment opportunities through promotion of Santa Monica as a travel destination.

VISION To ensure Santa Monica is recognized as the premier beach-city destination in the world.

BRAND PROMISE Santa Monica...an unforgettable beach city experience filled with eye-catching people, cutting-edge culture and bold innovations. It’s the essence of the lifestyle.

2 SMCVB STAFF TABLE OF CONTENTS Misti Kerns, CMP CDME President/CEO Richard Peterson Executive Vice President 2-3 - Introduction Kim Sidoriak, CDME Chief Marketing Officer Lauren Rogers, CDME 4-5 - SMCVB Five-Year Strategic Plan Director, Global Business Development Hannah Avol 6-7 - 2014 Tourism Economic Impact Statistics Director, International Business Development Alexandra Cantle Senior Manager, Client Services 8-9 - SMCVB’s International Presence Nika Jalali Global Business Development Coordinator 10-17 - International Market Summaries Laura Buller Global Sales & Services Assistant Kelly Nagle 18-19 - Emerging Markets Communications Manager Jackie Alvarez 20-21 - Santa Monica FAM Tours Public Relations Coordinator Amy Mason Marketing Coordinator 22-23 - North America Efforts Elizabeth Ryan Visitor Experience Manager 24-27 - Engaging the Community Evan Edwards Executive Assistant Iris Nishina-Gee 28-29 - Digital Updates Accounting Coordinator Rachel Lozano 30-31 - Santa Monica’s Brand Refresh Project Manager 32-33 - How to Work With SMCVB

2014/2015 BOARD OF DIRECTORS Ellis O’Connor, Chairman Fairmont Miramar Hotel & Bungalows Raphael Lunetta, Vice Chairman Chef/Restaurateur Nicole Flynn, Secretary 2014/2015 TMD COMMITTEE Macerich Juan Viramontes, Chairman Don Camacho, Treasurer Georgian Hotel Camacho’s Incorporated Rebecca Huetter, Vice Chair Richard Chacker, Member ETC Hotels Perry’s at the Beach Stephen Sowards, Secretary & Treasurer Gregory Day, Member Le Meridien Delfina Santa Monica Shutters on the Beach Hotel Sarah Best, Member Albin Gielicz, Member Loews Santa Monica Beach Hotel Resident Henri Birmele, Member Jeff King, Member Hotel Shangri-la at the Ocean King’s Seafood Co. Catherine Gill, Member Paul Leclerc, Member Doubletree Suites by Hilton Santa Monica Loews Santa Monica Beach Hotel Daniel Gregory, Member Danielle Noble, Member Ocean Lodge Santa Monica Beach Hotel City of Santa Monica Matthew Lehman, Member RoseMary Regalbuto, Member Fairmont Miramar Hotel & Bungalows Resident Angela Rogers, Member Laurel Rosen, Chamber Liason Hotel Carmel Santa Monica Chammber of Commerce

3 SMCVB’s Five-Year Strategic Plan

In 2013, SMCVB developed a five-year strategic plan with the input of various stakeholders, including civic leaders, hoteliers, business improvement districts, restaurants and related businesses. The plan is centered around five areas of focus. Read below for key achievements in each area of focus from the past fiscal year.

Drive Balanced Demand for the Destination Driving balanced demand for our destination is a critical component of SMCVB’s strategic plan. Our marketing and sales teams specifically target niche international and domestic markets that will fill identified business need periods, convert day visitors to overnight visitors and increase overall length of stay and spend into our destination. A few key highlights from this year include:

• Activated an integrated booking engine platform on “SantaMonica.com” to drive bookings directly to our hotels’ websites • SMCVB and destination partners participated in 30 national and international programs, trade shows and conferences targeting our core business channels • SMCVB facilitated sales missions and client programs in the key domestic markets with 15 SMCVB hotel and attraction partners—reaching over 485 clients through individual meetings and group sales presentations • SMCVB’s leisure sales efforts through our international programs and sales engagements realized 1,530 individual client appointments • Engaged a stronger social media and digital advertising program to promote travel to Santa Monica during the destination’s soft season. This campaign generated over 4.8 million impressions, 30,000 hits on SantaMonica.com and 5,000 outbound clicks directly to partner hotels • Launched the BONDI BOYS Travel Trade Incentive Campaign in Australia, which resulted in collaborative sales activities in country with trade clients

Enhance the Brand and Steward the Destination Experience If last year was all about assessment and reanalyzing, this year SMCVB focused on setting the destination up for an even more successful future with our new brand concept and supporting programs including:

• Launched a redesigned logo, brand style guide, destination photography and more tools for community partners to utilize along with an entirely redesigned SantaMonica.com with a new hotel-booking portal, free business page listings and a responsive design • Provided a new and improved method to our Official Visitor Guide and Map that represents destination Santa Monica and serves our visitors and businesses • Completed a digital-focused strategy, which serves as an instructional manual for interacting with our customer across highly engaged digital touch points • Launched the Santa Monica Free Ride Shuttle in partnership with hotels, which has helped to steward the destination experience by offering residents and visitors alike an open-air electric shuttle service. This provides an excellent opportunity to add to this service over the next few years in partnership with other local hotels and businesses

4 Actively Champion the Value of Tourism Tourism is the number one service exported in the U.S. and one in every nine American jobs depends on tourism. It is critical for our local community to understand the indispensability of tourism in Santa Monica, and SMCVB strives to effectively disseminate information and strengthen industry engagement to raise local awareness on the value of tourism.

• In an effort to quantify and measure local perceptions of tourism, this year we revised our Santa Monica household phone surveys to include the question, “On a scale of 1-5, how valuable do you think tourism is to our local economy?” This was coupled with an on-site resident survey at various neighborhood holiday events. 81.7% of the 416 residents surveyed ranked tourism as valuable or extremely valuable to our community. Now that we have a baseline, we hope to continually increase that percentage by raising awareness through our continued proactive involvement in our community with consistent information dissemination. • Santa Monica visitors have high expectations when they are visiting our premier beach-city destination and providing top service is key to our destination’s success. We have launched an updated version of the “I Am Santa Monica” program that offers a deeper focus on customer service. This free program helps our hospitality work force to meet and exceed visitor expectations while offering a more cohesive brand experience within the destination. To date, we have certified nearly 2,800 Santa Monica Ambassadors. • This year, SMCVB received the Western Association of CVB’s Best Idea Award for the Santa Monica Free Ride Shuttle and the Platinum Adrian Award for Leadership in Sustainable Tourism from HSMAI and National Geographic. Thank you to our city leaders and industry partners for collectively working with us to strengthen Santa Monica’s reputation as a top sustainable destination and encourage visitors to make eco-friendly decisions.

Strengthen Strategic Partnerships and Relationships Partnerships play a key role in our foundation and SMCVB remains focused on strengthening local partnerships and securing new alliance partnerships that will extend worldwide Santa Monica’s brand.

• Recently introduced regular roundtables sessions that bring our destination community partners, restaurants, attractions, retail and hotels together to discuss timely topics related to Santa Monica and SMCVB. Topics have included “Advertising Partnership Opportunities with SMCVB,” “What Your Business Needs to Do to Address the Drought” and “Leveraging Social Media and Public Relations” • We continue to host quarterly Director of Sales & Marketing briefings for full destination business development review, quarterly Hospitality Mixers to provide a networking avenue for our local industry partners along with regular General Manager meetings, monthly Board of Director meetings and quarterly TMD Committee meetings • Our SMCVB business packet has been curated in an effort to engage with all new businesses in the community • Established a partnership with American Express and Buy Local to support the Small Business Saturday program • Participated in local BID’s holiday events

Ensure Operational Excellence Lane five is the foundation of our strategic plan and operation as a non-profit organization. We strive to effectively manage business operations to deliver the highest possible return on investment to our stakeholders and make our organization the employer of choice for talented sales, marketing and service professionals. To meet those needs this year, SMCVB:

• Reanalyzed individual staff roles and restructured the team in an effort to limit administrative costs while increasing the value and services delivered to community partners • Successfully implemented new software integrations to optimize internal & external communications and client relationship management • Completed Board of Directors, TMD Committee and staff professional development strategy sessions to integrate organizational efficiencies, communication and teamwork • Optimized our data and reporting methodology including, but not limited to, a full annual operational and financial audit

5 2014 Tourism Economic Impact Statistics

2014: $1.72 billion

13,700 Total Annual Visitor Spending Tourism Jobs that Stay in Santa Increase Monica and Cannot Be Exported {

6.2% INCREASE 2013: FROM 2013 $1.63 billion

$101 INCREASE $1,209 FROM 2013 The amount of money each Santa Monica household would have to pay in taxes to maintain city services if tourism revenues and the TOT from visitors did not exist.

$45.5 Transient Occupancy Tax (TOT) generated by Santa Monica million hotels directly to the City of Santa Monica’s general fund

7.6% INCREASE FROM 2013

Retail Sales Tax Revenue Generated from Visitors into the City of Santa Monica’s General Fund

75.9% of visitors walked $10.6 to get around Santa 9.6% INCREASE million Monica once arrived FROM 2013

6 Average Daily HOTEL VISITOR $352 Spend Of: { DAY VISITOR $82

Origin of Visitors: Spending Breakdown:

55% International \ 45% Domestic 55.5% International \ 44.5% Domestic

Top Five International Feeder Markets:

Australia/ England Mexico Western Canada Germany New Zealand 10.1% 7.8% 6.4% 5.4% 17.8%

Top Five Domestic Feeder Markets:

California New York Nevada Texas Arizona 33% 7.8% 6% 5.7% 5.3%

Source: Tourism Economic Impact & Visitor Profile 2014, Lauren Schlau Consulting and CIC Research, Inc. for Santa Monica Convention & Visitors Bureau

7 Santa Monica’s International Presence

Aside from our administrative office and five visitor center locations within the destination, Santa Monica Convention & Visitors Bureau employs trade and public relations representatives located around the world in our top priority markets, championing and selling destination Santa Monica to their key markets.

SANTA MONICA, CA Santa Monica CVB Main administration office and five visitor information center locations

BRAZIL Carolina Maciel X-Mart Full-time trade representation Part-time public relations representation

8 UNITED KINGDOM/IRELAND Julia Mitchell Black Diamond Full-time trade representation Part-time public relations GERMANY representation Steffi Ahlers MSI - Marketing Services International GmbH Part-time trade representation

FRANCE Murielle Nouchy Mn’Organisation Part-time trade representation

AUSTRALIA/NEW ZEALAND Annabella Hender Gate 7 Full-time trade representation Part-time public relations representation

9 Australia and New Zealand

Campaigns Activated: • Santa Monica enlisted Australian celebrities Luke Hines and Scott Gooding as official Santa Monica Ambassadors. Luke and Scott are known for healthy lifestyle and their celebrity image was used in the following promotions: Incentive sales campaign which trained 248 travel agents on the destination; Luke and Scott made an appearance at two Santa Monica cooking events for 87 key trade and media; Santa Monica partnered with a weekly women’s magazine, New Idea, to produce two articles and a contest to win a trip to Santa Monica; Popular Newspaper, Body + Soul Magazine, created an inset featuring destination Santa Monica • SMCVB partnered with Escape Travel to create a marketing campaign which increased sales by 145% and trained 107 travel agents on Santa Monica’s benefits • Flight Centre created a marketing campaign which boosted Santa Monica’s LA market share across the mass market and increased sales of 11%, as a result of a partnership campaign with LA Tourism and Brand USA

In-Market Events: • SMCVB and Excite Holidays co-hosted a wellness event, which resulted in a sales increase from attendees by 427% in the three months following • Team Santa Monica conducted a week-long sales mission consisting of 12 meetings and training of 100 travel agents • Destination Santa Monica was visible at eight tradeshows in Australia and New Zealand - attended by nearly 2,000 travel agents in total - and four consumer shows with an attendance of 50,000 buyers

Left: Official Santa Monica Ambassador and Australian celebrity Luke Hines (center) and clients participate in an in-market cooking class. \ Right: Richard Peterson, Lori Harrison and Dan Sparacino present at the Excite Holidays sales mission in Australia.

10 Combined #1 MARKET FYI Overseas Market to Santa Monica

In 2013, Australia and New Zealand accounted for more than 670,000 visitors into California and $1.1 billion in travel spending - California’s 3rd and 12th largest overseas markets respectively. Both countries have seen continued growth in visitor numbers, increased length of stay and BY THE NUMBERS record spending with the U.S. currently the number one long haul destination for Aussies and Kiwis. 241 Sales calls in market In Australia, the travel agent still plays an important role in the booking process. 85% of travel to the U.S. from Australia originates from 3 states; NSW (Sydney), Victoria (Melbourne), and Queensland 11 (Brisbane). Over 54% of Australian visitors to the Tradeshows in market U.S. visit California.

The most popular travel month for Australians to the U.S. is September with May, June and December the next most popular months. And, PUBLIC RELATIONS the most popular activity for Australians when holidaying in the U.S. is shopping, closely followed 7,690,237 by sightseeing. Circulation in 2013/14 In regards to New Zealand, Greater Auckland makes up the majority of the travel to the U.S. $1,222,716 Combined with Wellington and Christchurch, the Publicity value in 2013/14 three cities account for 67% of travel to the U.S. 67% of Kiwis who visit the U.S. visit California. The most popular months for Kiwis to travel to the vs. U.S. are July, August and September. 14,031,206 Circulation in 2014/15 45.2% INCREASE $2,252,624 Publicity value in 2014/15 45.7% INCREASE

11 Brazil

Campaigns Activated: • Santa Monica partnered with luxury tour operator Teresa Perez in São Paulo on a marketing campaign that involved several successful actions including: A custom Santa Monica brochure which was created and sent to all of Teresa Perez’ travel agent clients and consumer clients; Team Santa Monica hosted a B2B and B2C event at the brand new Casa Goia event space for potential high yield clients; and Santa Monica launched an incentive campaign for travel agents to win a beach cruiser bike by selling room nights to Santa Monica • Team Santa Monica conducted travel agent trainings at Primetour so that agents can increase sales through American Express cardholders • SMCVB launched a campaign with Maktour, a traditional tour operator in São Paulo, to promote the beach destination to their clients, resulting in an increase in room nights to Santa Monica

In-Market Events: • SMCVB attended TravelWeek Rio, completing 44 appointments with top travel agents to educate them about the Santa Monica destination. 82% of the travel agents Santa Monica met with were actual agency owners with direct influence to staff and high-profile clients • Santa Monica hosted the Clube de Campo São Paulo Golf Tournament, with strong brand presence to promote the destination to attendees of this prestigious social club

Left: SMCVB’s Director of Global Business Development Lauren Rogers, Lori Harrison and clients at an in-market Brazilian client event. \ Right: SMCVB trade representative Carolina Macial with clients during a FAM tour in Santa Monica as part of a partnership with Leading Hotels of the World.

12 MARKET FYI

In the past decade, Brazil has seen constant growth in luxury goods, particularly in travel #1 Growth abroad. Wealthy Brazilians travel year around Market and quite frequently. According to Euromonitor´s 2014 World Report, Brazil´s economy is at USD $2.3 trillion, and it is expected to become the fifth largest consumer market by 2023.

2014 had slower growth than predicted due to the BY THE NUMBERS World Cup and presidential election, but Brazilian travel is predicted to continue to grow. According 162 to Visit California, Brazil is a key growth market. In Sales calls in market the last three years, the country has become a top priority due to the new direct airlift and a growing middle class, among other factors. More than 206,000 Brazilians travelled to California in 2013, a 12.6% increase over 2012. Brazilians spent USD $434 million in 2013 in California alone. PUBLIC RELATIONS Personal relationships are extremely important in Brazil and travel agents are viewed as trusted 9,250,871 friends. Word of mouth and social media have Circulation in 2013/14 a very strong influence on the Brazilian traveler in selecting their hotel, dining, and activity options. It is extremely important for hoteliers $2,182,406 and destinations to make direct contact with Publicity value in 2013/14 travel agents and, when possible, with the actual consumers in order for them to feel as they have a vs. direct line of contact with the final product. 25,347,754 Circulation in 2014/15 63.5% INCREASE $556,810 Publicity value in 2014/15

13 United Kingdom and Ireland

Campaigns Activated: • SMCVB launched “California Live: Santa Monica” video on luxury operator Black Tomato’s website • In partnership with Virgin Holidays, Santa Monica created an online marketing campaign, which helped build destination awareness and resulted in 700 room night sales to the destination • Santa Monica was included in the first round of the brand new USA Discovery program module for travel agent training through Brand USA

In-Market Events: • Team Santa Monica conducted its annual sales mission to the United Kingdom in September, which consisted of operator trainings and one-on-one meetings with Product Managers and other key clients. Team Santa Monica also hosted five London based journalists for a lunch to educate them about the destination • Santa Monica was the headline sponsor of the Action for Kids Beach Volleyball Championship’s in Canary Wharf with three weeks of visual branding and extensive coverage at a pop-up beach volleyball and bar event in London’s iconic financial district • The OMYoga show – a leading yoga event in the United Kingdom – included extensive destination branding at weekend-long event. Exhibiting across three of the five classes at the yoga show, Santa Monica had an interactive presence amongst consumers with over 3,000 people taking part in a Santa Monica yoga class

Left: SMCVB’s Director of International Business Development Hannah Avol and clients at a United Kingdom sales mission in fall 2014. \ Right: SMCVB’s United Kingdom trade representative, Julia Mitchell, provides on-site agent training to clients.

14 MARKET FYI #2 Feeder Market

Long haul travel from the United Kingdom has increased the most this year since the recession, accounting for approximately 19% of leisure travel with the being the leading long haul travel destination. California is popular with Brits due to its diversity of offerings, safe reputation, and easy BY THE NUMBERS access with even more airlift now coming into LAX.

British customers are seeking adventure, luxury, 88 entertainment and culture all rolled into one. Sales calls in market Family travel is back up from a fairly stagnant period potentially because of the amount of multi- generational families traveling. The emerging market for long haul is the young professionals and 2 ‘Y generation’ who are enthused by tech travel, Tradeshows in market ‘living like a local’, low cost airlines and interesting accommodation offerings.

Consumers from the United Kingdom like things to feel familiar, which is partly why many people travel to U.S. With this in mind, there are some things PUBLIC RELATIONS that don’t translate well and can cause agitation for British travelers to the U.S.: extra costs are one of those things. Resort fees, taxes and tips do not exist 14,667,102 in the Europe. Because of this, tour operators shelter Circulation in 2013/14 United Kingdom consumers from the extra costs by quoting all-inclusive prices. $514,084 Publicity value in 2013/14

vs. 15,882,331 Circulation in 2014/15 7.7% INCREASE $542,224 Publicity value in 2014/15 5.2% INCREASE

15 France

Left: Santa Monica collaborates with Brand USA and Visit California at the Top Resa tradeshow in France.

Campaigns Activated: • Actively engages in email marketing campaigns, sending web travel trade newsletters to its qualified database of more than 6,200 travel agents and tour operators • Engaged in continuous tour operator trainings and one-on-one agent meetings in France, which is seen as an integral aspect of the French travel market

Events In-Market: • Participated as a co-exhibitor at IFTM Top Resa, which is the only travel trade show in France and is recognized as the primary opportunity to reach French buyers • Presented destination training at Air France headquarters to over 100 of France’s top-selling travel agents and tour operators

MARKET FYI

France has long been one of California’s leading international markets and based on 2014 data, French visitors stayed an average of 10 days and spent an average of $1,934 per trip.

French travel trends to expect: Growth in luxury travel with increased demand for five-star and resort accommodation; Demand for and interest in cultural events; Renewed growth in demand for escorted tours; Increased desire to “live like a local“; Increase in activity trips fueled by a continued desire to explore the Great Outdoors.

16 Germany

Right: SMCVB’s German trade representative , Steffi Ahlers, participates in the Visit USA seminar promoting Santa Monica.

Campaigns Activated: • Conducted trainings for sales staff and product teams of key tour operator companies • Partnered with CANUSA Touristik to launch an online campaign. Through an online suggested itinerary, social media promotion and other online marketing, the campaign focused on creating awareness for Santa Monica and encouraging visitors to stay longer to experience all the diverse offerings of Santa Monica. These efforts resulted in 12% increase in the length of stay booked

Events In-Market: • Participated in ITB Berlin tradeshow, resulting in several lead proposals from top tour operators • Participated with six other restaurant and attraction partners from across the state to be part of a “California Highlights” booth at the Visit USA Seminar in Zurich, which was attended by 372 travel agents from Switzerland

MARKET FYI

As an economic powerhouse in Europe, Germany is the European country with the most international departures to the U.S. Germans traveled more in 2014 than in previous years with the U.S. remaining the top overseas destination. In 2014, the U.S. saw 1.9 million German visitors who stayed an average 11.3 nights and had an overall spend of $703 million.

German travel trends to expect: Growth in luxury travel; Growing number of traveling senior citizens; Increase in early bookings that result in an extended booking window; Beach holidays, outdoor/adventure trips and family vacations being the main drivers for tourism.

17 Emerging Markets China and India

Within the established key market segments of SMCVB, the destination boasts solid visitation from international markets including Australia, New Zealand, the United Kingdom, Brazil, Germany, France and Canada.

Our goal and strategy is to ensure a diversified and balanced visitation for our destination throughout the year. SMCVB is collaborating with our tourism partners, regionally, statewide and nationally - such as Visit California, Brand USA and United States Travel Association - on the development of new tourism markets. As we work towards sustained international visitor engagement, SMCVB has identified the leading emerging global markets at the center of development over the next year.

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18 1) CHINA In 2013 China was California’s largest international arrivals market with nearly 818,000 visitors traveling to the Golden State; a 22% year-over-year increase from 2012 and 45.3% of the U.S. market share. Bolstering an average spend of $165 per day, coupled with an average of 14.4 nights length of stay equates to approximately $2,380 per visitor spend. Comparing this this to all international visitors spend in California which in 2013 was $1,940, the China market is poised for sustained growth.

A few key characteristics of the Chinese traveler include: • Have a shorter trip planning and advance booking process • Utilize all inclusive travel packages • May be a first time visitor to the U.S. • Visit Los Angeles or Washington D.C. as part of first visit • Enjoy art galleries, museums, amusement parks and fine dining • Spend a greater amount of travel budget on souvenirs and gifts/shopping • Utilize credit cards, rather than cash for purchases • Stay longer in the U.S. and specifically California due to airline capacity – point of arrival access

2) INDIA Established as a key emerging market for California, India is forecasted to deliver nearly 50 million global outbound tourists by 2020. Within that short term, the U.S. is expected to realize a 54% increase in Indian arrivals by 2018.

This forecast is encouraging. In 2013, more than 245,000 visitors traveled to California and spent $446 million dollars. This total spend in California was 28% of the overall U.S. market share spend. Travel from India to the U.S. has been supported by the recent adjustments in issuance of tourist and business Visas. They are now granted for up to 10 years, which will be a key factor for the sustained forecasted growth and return visitation.

A few key characteristics of the Indian traveler include: • Have a shorter trip planning process • Stay longer in the U.S. and also California • Employed in business, science, arts or management • Utilize corporate travel departments for planning and airline ticketing • Travel to U.S. for business and also to visit family, friends and relatives, thus extending length of stay

Sources: U.S. Department of Commerce; U.S. Department of Homeland Security; National Travel and Tourism Office; Visit California; Tourism Economics, CIC Research

19 Santa Monica FAM Tours

One way that Santa Monica CVB strategically targets and educates key international leisure markets is through familarization tours or FAMs (see definition to the right) via partnerships with hotels, restaurants, attractions, airlines, tour operators and other industry partners.

International Leisure FAM Feedback

This year, with the support of 54 local businesses, SMCVB welcomed 25 familiarization tours to Santa Monica. Totaling 270 pre-qualified buyers from all areas of tourism from event planners to travel agents, these FAMs are conducted in an effort to acquaint the attendees with the destination and its businesses and thus, with their first-hand experiences, be able to make educated recommendations to their clients. From those 25 FAM tours, SMCVB facilitated 53 post-FAM surveys. A few results are highlighted below.

30% Yes 98% Extremely Satisfied 70% No 2% Satisfied 0% Not Satisfied

Have you ever visited How would you rate your Santa Monica prior to your FAM? Santa Monica FAM?

83% Extremely Satisfied 96% Yes 17% Satisfied 4% No 0% Not Satisfied

How would you rate your Would you book any of the overall hotel experience? activities you experienced on the FAM for your clients?

20 FAMILIARIZATION TOURS (FAMs):

A complimentary or reduced-rate travel program for pre-qualified journalists, travel agents, airline employees and top travel buyers, designed to acquaint participants with specific destinations or suppliers and to stimulate the sale of travel. By experiencing first-hand the destinations where they are sending travelers, the agents and buyers are better prepared to answer customer questions and promote travel to the location.

STRAIGHT FROM THE SOURCE

“All the activities offered were perfect in promoting everything Santa Monica has to offer. The bike tour was a great way of seeing a bit more of the destination and lots of fun! The hotel inspections really opened my eyes to what there is to offer to a wide variety of clients.” - Jade Rowley, Trailfinders

“I have been to California a few times but never stayed in Santa Monica. I loved the fact that you do not need a car there and it is so accessible to LA. The bars/restaurants etc. are superb!” - Linda Millar, Bryan Somers Travel

Left: German product managers on a Santa Monica CVB-hosted FAM. \ Right: Clients participate in a Gourmandise cooking class, part of a Santa Monica CVB-hosted in-market MICE FAM.

21 North America Efforts

Soft Season Consumer Campaign

In an effort to drive demand during Santa Monica’s soft season (October– January), SMCVB launched a media campaign encouraging residents of Toronto, New York City, Chicago and to Summer Your Winter in Santa Monica.

Through various tactics such as paid search, paid social and display advertising across programmatic platforms, re-targeting, mobile and tablet, the campaign resulted in 4.8 million impressions, 30,000 visits to the SantaMonica.com campaign landing page, and 5,000 clicks out to Santa Monica hotels’ websites.

What’s to Come: MICE* Strategic Development

SMCVB is conducting a comprehensive review of its meetings strategy and implemented several actions this year, working towards the goal of forming a client led Meetings Advisory Board in FYE 2016.

\\ SMCVB surveyed all Tourism Marketing District hotels to have data points on the desired group business for each hotel. This will influence SMCVB’s global meetings strategy to best influence the appropriate business segments to book MICE business.

\\ SMCVB hosted 30 top pre-qualified meeting planners in our destination, who participated in a weekend long familiarization trip to the destination to experience what Santa Monica has to offer in terms of hotels, group dining, group activities and off-site meetings options.

\\ These planners also participated in a focus group led by Corraggio Group which included questions on the destination’s strengths, weaknesses and where we fit in amongst our competition. This information will be formalized into a report in May and shared at an upcoming meetings roundtable. We encourage those interested in group business to attend.

\\ In FYE 2016, SMCVB will form a working group to discuss ever-evolving group business in the destination and how to best capture this business. SMCVB will also form a client-led MICE Advisory Board to help us keep the destination as competitive as possible to win group business.

* = Meetings, Incentives, Conferences and Exhibitions

22 BY THE NUMBERS 415 Leisure and MICE sales calls 6 Leisure and MICE tradeshows 11 MICE client events hosted 25 Leisure and MICE FAMs hosted

PUBLIC RELATIONS

180,746,379 Circulation in 2013/14

$1,029,768 Publicity value in 2013/14 vs. 290,202,396 Circulation in 2014/15 60.6% INCREASE $1,062,198 Publicity value in 2014/15 3.1% INCREASE

23 Engaging our Hospitality Industry & Local Community

Santa Monica CVB recognizes that the community - residents and employees alike - is an integral part of a thriving destination. Learn more about SMCVB’s efforts within Santa Monica from partner events and educational programs to community campaigns and local services.

I Am Santa Monica

With Santa Monica’s average daily rates rising, visitors have higher expectations when visiting our premier beach-city destination, and being able to provide top service is key to our destination’s success. Last year, we relaunched an updated version of the “I Am Santa Monica” program that offers a deeper focus on customer service. Our new and improved program will help our hospitality industry meet visitor expectations and offer a more cohesive brand experience within the destination. We’ve also expanded upon our tourism works section to ensure that attendees leave with a firm grasp of the many benefits that tourism brings to our community. To date, we have certified nearly 2,800 Santa Monica Ambassadors through the I Am Santa Monica program. If you are not an Memory Rudolph Director of Sales, The Georgian Hotel official Ambassador, sign up for a free session at I Am Santa Monica Ambassador santamonica.com/iam

SMCVB Roundtables

Santa Monica CVB recently introduced a new kind of meeting to its calendar of events. Tourism roundtable sessions bring our destination partners, restaurants, attractions, retail and hotels together to discuss timely topics related to Santa Monica and SMCVB. In 2015, we held roundtables on such topics as “Leveraging Social Media and Public Relations to Promote Your Business to Visitors” and “What Your Business Needs to do to Address the Drought.” Be sure to watch for emails Santa Monica CVB’s Roundtable “Leveraging PR and Social Media to Promote Your Business to Visitors” from SMCVB regarding upcoming roundtables.

24 SANTA MONICA CVB AND SUSTAINABILITY

Sustainability is an essential part of our Santa Monica lifestyle. Our city is recognized around the world for the role its citizens, government and businesses play in sustainable leadership and practices. As both a participant and messenger, Santa Monica Convention & Visitors Bureau (SMCVB) acknowledges the importance of preserving our natural resources and we are pleased to be part of a community that is a leader in this movement.

This year, the Hospitality Sales and Marketing Association International (HSMAI) and National Geographic Traveler recognized Santa Monica Convention & Visitors Bureau (SMCVB) with a Platinum Adrian Award for “Leadership in Sustainable Tourism” at the 58th Annual Adrian Awards, the largest and most prestigious travel marketing competition globally. SMCVB received the honor for its part in creating the Santa Monica Green Business Certification Program, a voluntary program that encourages businesses to implement environmental practices. The program is a collaboration between Sustainable Works, SMCVB, the City of Santa Monica and Chamber of Commerce.

Since its inception in 2007, 83 businesses in Santa Monica have received their green certification including six hotels, 22 restaurants and attractions such as the Santa Monica Bike Center, Aquarium and Santa Monica Museum of Art. SMCVB led the charge by becoming the first office in the City of Santa Monica to receive the Santa Monica Green Business Certification and continues to leverage its communication channels to strengthen Santa Monica’s reputation as a top sustainable destination and encourage visitors to make more eco-friendly decisions.

Recently SMCVB had to renew its Green Business Certification after relocating its new office and Visitor Center to the Center on Main Street. “I was quickly reminded throughout our recertification that economically sustainable practices are not only good for environment, they also reduce your bottom line,” said SMCVB CEO/President, Misti Kerns. “It’s simple. The fewer natural resources your business consumes, the more successful it is going be.”

Take advantage of the free expert resources that our community offers and help Santa Monica remain a beautiful place to live, work and visit. Learn more about becoming a Certified Santa Monica Green Business at www.smcgb.org.

25 EXTRA BEDROOM November - January

Our popular Extra Bedroom program provides residents and visiting friends and relatives an opportunity to be a tourist in their own backyard with discounted nightly hotel rates and is a terrific community relations opportunity to expose locals to the many beautiful hotels available in Santa Monica.

EAT WELL WEEK Early January

A healthy alternative to the typical restaurant week, Eat Well Week is a Santa Monica-based Subject: FW: Eat Well Week Date: Monday, January 5, 2015 at 12:35:02 PM Pacific Standard Time From: Lynne Thomas dining campaign crafted by To:SMCVBMisC Kerns, Amy Mason and held in conjunction with Visit California’s California : )

Restaurant Month. The campaignLynne Thomas highlights healthy dining during a time when the public is Director of Sales and Marketing The Lobster 1602 Ocean Avenue focused on making New Year’sSanta Monica , CAresolutions 90401 by teaming up with Santa Monica restaurants to offer T:310-458-9294 Direct:310-458-3913 F:310-458-9654 delicious, healthy menu itemswww.thelobster.com specially crafted for Eat Well Week.

P please don't print this e-mail unless you really need to.

From: The Lobster [mailto:[email protected]] Sent: Monday, January 5, 2015 12:31 PM To: [email protected] Subject: Eat Well Week

Eat Well Week Trouble viewing email? View it in Your Browser.

january 4th - 11th, 2015

“The Lobster is a huge supporter of Eat Well Week. It’s such a great way to be able to showcase our healthy items and introduce new people to our restaurant. Many people aren’t aware of the many healthy items on our menu. The media and news coverage always helps promote this amazing week and our restaurant.” – Lynne Thomas, The Lobster

26 SANTA MONICA FREE RIDE BY THE NUMBERS 20 Hotels participated in the 2014/15 Extra Bedroom campaign 4,109 Page views for SantaMonica.com Extra Bedroom landing page

Launched in May 2014, the Santa Monica Free Ride Shuttle is a hotel-sponsored service that services the Downtown Santa Monica, Santa Monica Pier, Main Street, and Montana Avenue 20 areas and is available at select hotels for free. Restaurants participated in Pedestrians can also flag down the vehicles to be Eat Well Week 2015 transported within the service area. Currently, the Santa Monica Free Ride averages approximately 7,000 rides per month. 17,139,132 Current hotel sponsors include Doubletree Circulation generated by Suites by Hilton Hotel Santa Monica, Loews Eat Well Week Santa Monica Beach Hotel and Shutters on the Beach Hotel. Beginning May 2015, two new free ride shuttles will be introduced, sponsored by Hotel Casa del Mar and Le Meridien Delfina $37,473 Santa Monica. Publicity value generated by Eat Well Week “SMCVB has been very supportive since we set our sights on expanding to Santa Monica and we couldn’t be happier to partner directly with them on this unique program. It strengthens our overall presence in the market and creates a great balance of serving visitors and locals alike.” 311 - Jason Bagley, Free Ride Founder Seasonal specials submitted by Santa Monica businesses

27 Digital Updates

SantaMonica.com 86K 4.35 1:38 Monthly site visits Pages views per visit Average time on site

SantaMonica.com’s top 5 landing pages Visitors to SantaMonica.com are predominantly: (besides the homepage) are:

1. What to Do • Ages 25-44 years old (51.78%) 2. Events Calendar • Female (60.7% female; 39.3% male) 3. Shopping/Downtown • Still using their desktop, however mobile is climbing! 4. New Year’s Eve (55.6% are on desktop; 34% on mobile; 10.4% 5. Where to Stay on tablet)

*Numbers and statistics are based on July 1, 2014 through April 1, 2015.

DID YOU KNOW...

Santa Monica Convention & Visitors Bureau recently launched a completely redesigned SantaMonica.com. Turn the page for more information and watch our statistics grow!

Bonus: Every tourism-serving business with a Santa Monica city business license has an opportunity to have a free landing page! For more information, email [email protected].

28 BY THE NUMBERS as of April 1, 2015 33,154 Facebook followers 12.17% increase from July ‘14 23,562 Twitter followers 23.95% increase from July ‘14 8,408 Instagram followers 103.63% increase from July ‘14 1,931 Pinterest followers 20.01% increase from July ‘14

22 E-newsletters sent in last nine months 7,494 23.3% Average monthly page views Average e-newsletter open rate to Santa Monica’s sponsored Tripadvisor page (pictured above)

29 Santa Monica’s Brand Refresh

Say hello to our new logo for marketing campaigns Santa Monica connects laid-back with luxurious. Fun with funky. Natural with cultural. The energy of LA with the comfort of a classic California beach town. Those combinations give Santa Monica something special. Something we call “SANTA MONICA SOUL.” It’s the way the sun feels on your face. The sound of the sea. The sights and smiles and stories you’ll find from the Promenade to the Pier and And goodbye to our previous logo - beyond. Santa Monica is the essence of you served us well California, with a personality all its own. Santa Monica Soul defines the unique spirit of a city that’s full of life.

Now, we present to you Santa Monica’s refreshed destination brand and new assets including a redesigned SantaMonica.com, new Official Visitor Guide and Official Visitor Map.

30 PREVIOUS NEW

OFFICIAL VISITORS MAP 2015/16

And goodbye to our previous logo - you served us well

From top to bottom: SantaMonica.com, Official Visitor Guide, Official Visitor Map

31 How to Work with SMCVB

Santa Monica CVB offers a variety of free as well as partner opportunities to raise awareness of your business among potential visitors. The more collaborations you opt-in for, the better equipped you will be to sustain and grow your tourism business. To learn more about any of these programs (many are free), speak to an SMCVB staff member or visit: santamonica.com/tourism-biz

Attend “I AM Santa Monica” Training Program to Become a Santa Monica Destination Distribute Expert** Your Business’ Brochures at SMCVB Visitor Centers + + Host Travel Writers and Travel Agents Subscribe to Volunteer and SMCVB’s Monthly Welcome Visiting Tourism Update Groups** + Newsletter**

Participate in Tradeshows and Advertise Sales Missions in SMCVB Official Visitor + Publications

32 SANTA MONICA VISITOR INFORMATION CENTERS AND WHAT THEY CAN DO FOR YOU

Upload information The Santa Monica Visitor to your SantaMonica.com Information Centers are your source business for all things Santa Monica and landing page** are here not only as a resource to guests, but to you - our travel partners and residents - as well. All of our Visitor Centers provide friendly, trained and knowledgeable travel counselors; Visitor Guides and Maps; Attend Roundtables and foreign language line; and information on Other Events attractions, tours, hotels, dining, museums, Hosted by galleries and entertainment. SMCVB** + With the launch of our new brand, we are expanding our merchandise and welcome you, our partners, to visit our Walk-in Visitor Information Center on Main Street. We look Submit Seasonal forward to collaborating with our local partners Special Offers, to offer Santa Monica merchandise in their included on locations as well as utilize these items to SantaMonica.com enrich and expand their welcome amenity and other + vehicles** programs.

SANTA MONICA VISITOR CENTERS:

\\ Walk-In Visitor Information Center Nominate Your Employees or 2427 Main Street Colleagues for a Thelma Parks \\ Pier Shop & Visitor Center Tourism Spirit 200 Santa Monica Pier Award** \\ Visitor Information Kiosk 1400 Ocean Avenue

\\ Visitor Information Cart 1300 Block of Third Street Promenade

Optimizing Your \\ I Love Santa Monica Mobile = Tourism Business Locations Vary

(** = free service)

33 Santa Monica Convention & Visitors Bureau 2427 Main Street Santa Monica, CA 90405 310.319.6263 santamonica.com

Visit Santa Monica @gosantamonica

@seesantamonica @lovesantamonica

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