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Annual Report ANNUAL REPORT 2018 CHOOSECHICAGO.COM | 1 2 | 2018 ANNUAL REPORT CHOOSECHICAGO.COM | 1 OUR AWARD-WINNING HOME THE 21 MOST INFLUENTIAL CITIES IN THE WORLD Business Insider, June 2018 WORLD'S BEST CITY FOR HAVING IT ALL READER'S CHOICE AWARDS: Time Out, January 2018 BEST BIG CITY IN THE U.S. Conde Nast Traveler, October 2017 & 2018 IT WAS A GREAT YEAR FOR CHICAGO. OUR CITY WAS RECOGNIZED FOR ITS OUTSTANDING CULINARY COMMUNITY, THRIVING CRAFT BEER SCENE TOP METRO AREA FOR CORPORATE AND FOR BEING ONE OF THE ALL-AROUND BEST RELOCATION AND INVESTMENT Site Selection, Five Consecutive Years PLACES IN THE COUNTRY. DESTINATIONS WITH EXCELLENCE IN TOURISM: MICHELIN STARS AWARDED TO BEST TOURISM MARKETING 25 CHICAGO RESTAURANTS Illinois Office of Tourism Honors, 2018 Michelin HOME TO THE MOST BREWERIES IN THE U.S. The Brewers Association, 2018 CHOOSECHICAGO.COM | 3 TABLE OF CONTENTS 6 8 11 LETTER FROM 2018 ECONOMIC THE CHAIR OPERATIONS IMPACT & CEO 12 15 16 VISITATION HOTEL MEETINGS & SNAPSHOT CONVENTIONS 18 21 22 RECORD- STRATEGIC CULINARY BREAKING PARTNERS EVENTS PARTNERSHIPS 25 26 28 UNION CLIENT MARKETING PARTNERS SERVICES 32 36 37 MEDIA SPECIAL PUBLIC RELATIONS EVENTS POLICY 38 40 42 CULTURAL GLOBAL CHICAGO TOURISM DEVELOPMENT SPORTS COMMISSION 46 47 BOARD OF EXECUTIVE DIRECTORS STAFF 4 | 2018 ANNUAL REPORT CHOOSECHICAGO.COM | 5 LETTER FROM THE CHAIR & CEO The year resulted in many historic Attracting more international visitors to milestones. Chicago welcomed a record Chicago remains a priority. There was a 57.7 million visitors, an increase of 4.3% 3.8% increase in passport holders arriving from 2017. This growth resulted in a 4.4% on non-stop international flights at O’Hare increase in overall hotel room demand and Midway airports, reversing a negative and an encouraging 4.6% growth in trend in arrivals over the past several years. average daily rate for our hotel partners. Our accomplishments are due in large For the second year in a row, Chicago part to the tremendous support and was selected as the best big city in the cooperation we receive from the State United States by the readers of Condé of Illinois, the City of Chicago, including Nast Traveler. This type of significant the Department of Cultural Affairs buzz increased engagement with our and Special Events and the Chicago digital and social media platforms and Department of Aviation, the Metropolitan generated publicity around the globe. Pier and Exhibition Authority and dozens of corporate sponsors celebrated within The economic impact of our industry this report. These include the Chicago and our partners is vivid. Overall tourism Federation of Labor and our union partners expenditures exceeded $16 billion, focused on serving our customers, clients including almost $1.1 billion in tourism and guests. tax revenue. Hotel tax revenues alone generated $437 million. And finally, we appreciate the support from our 1,552 partner members representing Due to this growth, state hotel tax the best of Chicago’s accommodations, revenue increased by $12.9 million and arts, culture and entertainment, attractions, Chicago hotel tax revenues increased dining and nightlife, trade associations, by $11.7 million. Equally important, our transportation, convention-related services industry supported 150,616 tourism- and countless community groups. related jobs here in Chicago including 1,786 new opportunities added in 2018. Thank you to each of you who shares in our mission and a special acknowledgement This year, we once again surpassed our to our Board of Directors and committees annual goal and confirmed more than and, of course, our team of professionals 2.6 million future room nights by securing at Choose Chicago. commitments from 60 major bookings at McCormick Place and 2,340 future meetings in and with our partner hotels. OUR VERY BEST WISHES TO YOUR In total, these meetings will welcome over 3.9 million future attendees — CONTINUED SUCCESS. meeting, staying and playing in Chicago. The success also translated into positive results for our clients. In 2018, 20 of the 50 major meetings in Chicago broke DEAR On behalf of Choose Chicago, we want to thank you for your either all-time attendance records and/ or exhibitor participation records. PARTNERS, collaboration and commitment to the tourism, hospitality Our thriving meetings and events DESIREE ROGERS DAVID WHITAKER and meetings industry. We’re extremely pleased to share industry is augmented by a growth in BOARD CHAIR, PRESIDENT & CEO, our 2018 Annual Report, which highlights many of the key leisure visitors. The number of leisure CHOOSE CHICAGO CHOOSE CHICAGO visitors increased 4.8% in 2018 — more accomplishments of our organization and the results of than double the growth generated in our valued partnerships. 2017. This increase also helped support new hotel investments; Chicago welcomed nine new hotel properties in 2018. 6 | 2018 ANNUAL REPORT CHOOSECHICAGO.COM | 7 2018 OPERATIONS REVENUE BY SOURCE 50.9% STATE OF ILLINOIS 24.1% MPEA AGREEMENT 13.9% PRIVATE REVENUES 11.1% CITY OF CHICAGO OPERATING $29,136,677 REVENUE EXPENSE BY DEPARTMENT 4.1% GLOBAL DEVELOPMENT 1.8% CULTURAL TOURISM 1.5% RESEARCH 32.6% MARKETING 4.0% CHICAGO SPORTS COMMISSION 2.7% EXECUTIVE OFFICE 4.5% TOTAL EXPENSES: CORPORATE ALLOCATIONS $33,146,509* 31.3% 2.3% IN-KIND SALES & SERVICES 1.9% PUBLIC POLICY 6.3% 7.0% ADMINISTRATIVE MEDIA RELATIONS AND COMMUNICATIONS * Includes Board-approved draw-down of $4,009,832 in operating reserves to support 2018 initiatives 8 | 2018 ANNUAL REPORT CHOOSECHICAGO.COM | 9 ECONOMIC IMPACT Tourism is a crucial part of the city’s economic growth and job development. Chicago continues to benefit from the revenue and employment generated by its thriving tourism industry. TOURISM-RELATED EMPLOYMENT 133.5K 136.0K 140.5K 145.1K 148.8K 150.6K 2013 2014 2015 2016 2017 2018 +1.2% from 2017 DIRECT TOURISM SPENDING $13.3B $14.1B $14.6B $14.9B $15.4B $16.0B 2013 2014 2015 2016 2017 2018 +4.0% from 2017 TOTAL TAX REVENUE GENERATED $836.1M $885.2M $891.6M $953.1M $1.0B $1.1B 2013 2014 2015 2016 2017 2018 +4.0% from 2017 CHICAGO HOTEL TAX REVENUE $106.3M $113.6M $123.9M $127.1M $128.5M $140.2M 2013 2014 2015 2016 2017 2018 +9.1% from 2017 STATE HOTEL TAX REVENUE $117.5M $125.6M $137.0M $140.5M $142.1M $155.1M 2013 2014 2015 2016 2017 2018 +9.1% from 2017 10 | 2018 ANNUAL REPORT CHOOSECHICAGO.COM | 11 VISITATION In 2018, Chicago set a new tourism record with 57.7 MILLION DOMESTIC VISITATION (% CHANGE) VISITORS, 2.4 million more than the previous year. 4.8% 4.4% 4.3% These increases TOTAL VISITATION are the result of a continued focus (Domestic & Overseas) 2.8% 2.6% on growing our overnight and 2.1% leisure visitors to Chicago, who tend to spend 57.7M more and stay 2018 longer. 57.6M 55.3M 2017 2017 2018 2017 2018 2017 2018 53.8M TOTAL LEISURE OVERNIGHT 2016 52.6M 2015 50.0M 2014 48.3M 2013 12 | 2018 ANNUAL REPORT CHOOSECHICAGO.COM | 13 HOTEL SNAPSHOT - CENTRAL BUSINESS DISTRICT OCCUPANCY RATE AVERAGE DAILY RATE REVENUE PER AVAILABLE ROOM 75.36% $213.11 RECORD $160.61 +4.5% RECORD +5.4% ROOMS AVAILABLE ROOMS OCCUPIED REVENUE 15.6M 11.8M $2.5B RECORD RECORD RECORD +3.5% +4.4% +9.1% CHICAGO HOTEL TAX REVENUE $140,237,989 RECORD +9.1% 14 | 2018 ANNUAL REPORT CHOOSECHICAGO.COM | 15 MEETINGS & CONVENTIONS MAJOR MAJOR EVENTS BOOKED IN 2018 Hosting events, meetings and conventions contributes to the economic CONFIRMATIONS2.6M FUTURE ROOM APRIL 2019 MARCH 2021 health of the city and state. Our collective teams help bring meetings NIGHTS SECURED STAR WARS CELEBRATION ORACLE CORPORATION Anticipated attendees: Anticipated attendees: 6,000 and events to McCormick Place and Chicago hotels and event venues. 140,000 MAY 2021 JUNE 2019 AMERICAN ALLIANCE OF 101% SLATE INNOVATION SUMMIT MUSEUMS ANNUAL MEETING OF 2018 GOAL Anticipated attendees: 2,000 & MUSEUM EXPO Anticipated attendees: 5,000 2,421 $4.0B 2,336 JULY 2019 TOTAL MEETINGS IN ECONOMIC IMPACT AS A MEETINGS BOOKED INTERNATIONAL SEPTEMBER 2021 BOOKED RESULT OF ALL CONVENTIONS FOR HOTEL IN-HOUSE ASSOCIATION OF VENUE NATIONAL BLACK MBA AND MEETINGS BOOKED BUSINESS 954,056 MANAGERS VENUECONNECT ASSOCIATION ANNUAL ROOM NIGHTS Anticipated attendees: 2,500 CONFERENCE & EXPOSITION Anticipated attendees: 8,000 (or 35.6% of room night production booked within AUGUST 2019 NISSAN FY20 NATIONAL OCTOBER 2021 a 36-month window) DEALER MEETING OR MANAGER CONFERENCE Anticipated attendees: 2,400 & PACU MANAGER SUMMIT Anticipated attendees: 2,000 SEPTEMBER 2019 STARBUCKS LEADERSHIP MARCH 2022 CONFERENCE ACADEMY OF MANAGED Anticipated attendees: 13,000 CARE PHARMACY ANNUAL CONFERENCE MARCH 2020 Anticipated attendees: 4,000 ORACLE CORPORATION Anticipated attendees: 6,000 DECEMBER 2022 AMERICAN GEOPHYSICAL AUGUST 2020 UNION FALL MEETING INDEPENDENT GARDEN Anticipated attendees: CENTER SHOW 25,000 Anticipated attendees: 6,500 HEALTHTRUST UNIVERSITY CONFERENCE Anticipated attendees: 3,200 PANERA BREAD FAMILY REUNION Total Media Anticipated attendees: 4,500 Investment McCORMICK PLACE total future new major future of these meetings of these meetings in economic 8181 meetings secured 60 meetings 15 will convene in 66 have not met in $1.2$1.2B impact from 60 and conventions 15 Chicago for the Chicago for 10 60 new meetings 20 MORE THAN 2017 first time years or more booked at 10 MORE THAN 2017 McCormick Place 16 | 2018 ANNUAL REPORT CHOOSECHICAGO.COM | 17 RECORD-BREAKING PARTNERSHIPS 2018 PARTNER BREAKDOWN 35% CONVENTION CENTERS / CONFERENCE FACILITIES Choose Chicago's Partnership Program empowers local organizations to DINING 1% expand their marketing reach and connect to visitors in innovative ways. 2% MUSIC, COMEDY AND NIGHTLIFE 2% VISITOR RESOURCES 18% MEETING & 2% MUSEUMS EVENT SUPPLIERS 2% 1,552 242 90% SPORTS & RECREATION SHOPPING TOTAL PARTNERS, NEW PARTNERS RETENTION 3% A NEW RECORD IN 2018 IN 2018 3% THEATRE/PERFORMING ARTS 4% 12% TRANSPORTATION ACCOMMODATION 4% SPECIAL EVENT VENUES ASSOCIATIONS/ORGANIZATIONS 7% TOURS/ATTRACTIONS 5% PARTNER NETWORKING & NEW INITIATIVES EDUCATION EVENTS ONBOARDING VIDEO SERIES: This series of Our annual events are designed to help partners emails and videos helps educate new partners build their network and expand their professional about the benefits and resources available knowledge.
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