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Annual Report 2017 Welcome Home ANNUAL REPORT 2017 WELCOME HOME 2 / 2017 ANNUAL REPORT WELCOME TO THE CITY THAT FEELS LIKE HOME On behalf of Choose Chicago, thank you for your guidance, support, and commitment to growing our visitor industry. WELCOME HOME CHOOSE CHICAGO / 3 2017 DESTINATION AWARDS & ACCOLADES #1 BEST RESTAURANT CITY RESTAURANT CITY OF IN AMERICA THE YEAR 2017 Bon Appétit, August 2017 Conde Nast Traveler, May 2017 25 CHICAGO ESTABLISHMENTS AWARDED ONE OR MORE MICHELIN STARS MICHELIN Guide Chicago 2018, October 2017 RICK BAYLESS Topolobampo Outstanding Restaurant SARAH GRUENEBERG Monteverde Best Chef: Great Lakes May 2017 4 / 2017 ANNUAL REPORT TOP CORPORATE INVESTMENT/ CORPORATE RELOCATION METRO NATION’S TOP TECH Site Selection, March 2017 SPOT OF THE FUTURE Modis, February 2017 AMERICA’S MOST ASKED ABOUT CITY Expedia, December 2017 READERS’ CHOICE AWARDS: BEST BIG CITY IN THE U.S. 2017-2018 GLOBAL AWARDS Conde Nast Traveler FOR EXCELLENCE WINNER: October 2017 CHICAGO RIVERWALK Urban Land Institute, November 2017 BEST RUNNING RACE IN EACH STATE: BANK OF AMERICA CHICAGO MARATHON Compression + Design, 2017 BEST OF GAY CITIES 2017, BEST NEIGHBORHOOD: BOYSTOWN GayCities, December 2017 BEST DESTINATION: TRAVEL INFRASTRUCTURE Pacific Area Travel Writers Association, 2017 CHOOSE CHICAGO / 5 TABLE OF CONTENTS 6 / 2017 ANNUAL REPORT 08 10 11 12 LETTER FROM 2017 OPERATIONS ECONOMIC VISITATION THE CHAIR & CEO IMPACT 13 14 16 18 HOTEL SNAPSHOT MEETINGS & RECORD-BREAKING OUR PARTNERS Central Business CONVENTIONS EVENTS District 19 20 21 24 RECORD-BREAKING CULINARY UNION PARTNERS MARKETING PARTNERSHIPS PROGRAMS 28 30 32 33 MEDIA RELATIONS CULTURAL GLOBAL PUBLIC POLICY TOURISM DEVELOPMENT & COMMUNITY AFFAIRS 34 38 40 41 CHICAGO SPORTS 2018 KEY BOARD OF EXECUTIVE COMMISSION PRIORITIES DIRECTORS STAFF CHOOSE CHICAGO / 7 LETTER FROM THE CHAIR & CEO A new consumer advertising campaign, Welcome DEAR PARTNERS, Home, was launched in May to attract more regional, On behalf of Choose Chicago, we want to domestic, and international visitors. The campaign thank you for your guidance, support, and capitalizes on the sense that Chicago feels like home commitment to growing our visitor industry. to visitors with its authentic hospitality and diverse In collaboration with you, Choose Chicago surpassed experiences. We used integrated marketing efforts its goal of bringing 55 million visitors to Chicago. We to build upon key visitor experiences and platforms, are extremely pleased to share our 2017 Annual Report. including Food & Culinary, Theatre, Culture & Entertainment, Music, Attractions, Art & Architecture, The year welcomed a projected 55.2 million visitors, the LGBTQ+ Community, and Sports & Urban an increase of 2.5 percent, surpassing Mayor Rahm Recreation. In addition, we launched the Welcome Emanuel’s goal. This growth resulted in an increase in Home campaign in nine key international markets. By overall hotel demand of 3.3 percent, fueled in part by targeting 14.6 million households in the U.S. alone, a 6.2 percent jump in leisure hotel guests and record we’ve seen growth in unique visitors to our website, attendance at over half of our 40 largest conventions. including a 21 percent spike from regional visitors and Together, Choose Chicago and our partners secured a 20.8 percent increase in visitors from major US urban commitments from 61 future citywide conventions, centers. Since the launch of our new international representing over 1.6 million room nights and over campaign in the fall, there was a 114 percent jump 2,400 in-house meetings, which is projected to in site visits representing increased awareness and generate 2.6 million room nights. We implemented potential growth in these visitors. In December, two key strategies: target and secure “short term” Expedia named Chicago to its list of “Most Searched meetings and events to convene in the next three for Cities in America.” We will continue these efforts years (2017-2019); and capture new and incremental this year. meetings to supplement our largest legacy and To further support this expanded domestic and global rotational customers. Of the bids won, 33 percent outreach, media relations initiatives were significantly were booked for the targeted 36-month window, 23 expanded and integrated with social marketing efforts, percent will convene here for the first time, and 13 helping to generate more than 3,400 published percent had not met here in the past 10 years. A key articles and broadcasts with a combined circulation priority is booking for 2019 and over 260,000 room of over 6 billion. Fueled in large part by hosting 368 nights have been secured so far. 8 / 2017 ANNUAL REPORT media visits, these articles and features represented an While we celebrate these accomplishments, we also earned media value of over $37 million. know we must continue to evolve and rise above Our trade development efforts were also expanded industry challenges while expanding our footprint internationally this year, creating more cooperative around the world. Growing investor confidence in programs with partners to elevate our awareness Chicago has led to an unprecedented growth in and product offerings in 11 key markets. This included hotel supply in the past several years. To support this delivering Chicago’s message at 12 international trade growth, we will continue to target new and different shows and co-hosting 28 familiarization tours of categories of domestic and international visitors, Chicago from these key international markets. meetings, and events. Our Chicago Sports Commission boasted another Thank you to our Board of Directors and our many banner year, hosting major events that attracted partners who share in this mission including over more visitors and destination buzz. This propelled 1,500 association members. We look forward to our ascension as a major sports capital, including the collaborating with you to inspire more customers to NCAA Men’s Hockey Frozen Four Championships, “Choose Chicago.” the NHL Draft, and the Major League Soccer All Star Game. The commission won key bids for future high- profile games, such as the 2018 Laver Cup (a global international tennis tournament), the 2019 NCAA Division I Women’s Basketball Regional Tournament, and the 2020 NBA All Star Game. Speaking of buzz, in 2017 Conde Nast Traveler readers named Chicago the “Best Big City in the U.S.” and Bon Appétit touted us as the “Restaurant City of the Year.” Chicago again had the honor of hosting the prestigious James Beard Awards for the third consecutive year and secured a commitment to host the awards for the next four years. DESIREE ROGERS DAVID WHITAKER BOARD CHAIR, PRESIDENT & CEO, CHOOSE CHICAGO CHOOSE CHICAGO CHOOSE CHICAGO / 9 2017 OPERATIONS REVENUE BY SOURCE 47.5% STATE OF ILLINOIS 24.7% MPEA AGREEMENT 14.9% PRIVATE REVENUES 12.9% CITY OF CHICAGO & CHICAGO DEPARTMENT OF AVIATION $29,112,095 TOTAL REVENUE EXPENSE BY DEPARTMENT 4.3% Global Development 1.9% Cultural Tourism Marketing 32.7% 1.4% Research 4.1% Sports Commission 2.6% Executive Office $31,088,777* 4.6% Corporate Allocations 2.0% In-kind Sales & Services 32.3% 2.1% Public Policy 6.5% Administrative 5.5% Media Relations and Communications *Includes a $1.8 million investment with Brand USA to leverage international campaigns pre-paid in 2016. 10 / 2017 ANNUAL REPORT ECONOMIC IMPACT Chicago’s tourism industry plays a critical role in economic growth and job development. TOURISM-RELATED EMPLOYMENT 132.4K 133.5K 136.0K 140.5K 145.1K 146.6K 2012 2013 2014 2015 2016 2017 (PROJECTED) DIRECT TOURISM SPENDING $12.8B $13.3B $14.1B $14.6B $14.9B $15.2B 2012 2013 2014 2015 2016 2017 (PRELIMINARY) 2.1% INCREASE TOTAL TAX REVENUE GENERATED $805.6M $836.1M $885.2M $891.6M $953.1M $972.4M 2012 2013 2014 2015 2016 2017 (PRELIMINARY) 2.0% INCREASE HOTEL REVENUE $1.82B $1.90B $2.03B $2.22B $2.28B $2.31B 2012 2013 2014 2015 2016 2017 1.3% INCREASE CHICAGO HOTEL TAX REVENUE $101.5M $106.3M $113.6M $123.9M $127.3M $129.0M 2012 2013 2014 2015 2016 2017 1.3% INCREASE CHOOSE CHICAGO / 11 VISITATION In 2017, Chicago welcomed an estimated 55.2 million domestic and overseas visitors, an increase of 1.4 million more visitors than the previous year. TOTAL VISITATION (Domestic & Overseas) 55.2M 2017 (PROJECTED) 2.5% INCREASE 53.8M 2016 52.6M 2015 50.0M 2014 48.3M 2013 46.4M 2012 EVERY VISITOR TO CHICAGO GENERATES $18 IN TAXES 12 / 2017 ANNUAL REPORT HOTEL SNAPSHOT - CENTRAL BUSINESS DISTRICT DEMAND PERFORMANCE YEAR END SUPPLY (ROOMS OCCUPIED) 7,656,659 (+6.2%) 42,456 LEISURE ROOMS DAILY ROOM SUPPLY 3,461,491 (-2.5%) 1,610 GROUP ROOMS DAILY ROOMS ADDED 210,444 (+0.0%) 127 (+5 NEW PROPERTIES) CONTRACT ROOMS HOTEL PROPERTIES REVENUE AVERAGE DAILY RATE $152.03 (-2.6%) $203.63 (-2.0%) REVENUE PER AVAILABLE AVERAGE ROOM 74.7% ROOM (REVPAR) OCCUPANCY RATE (-0.6%) $197.84 (-2.6%) LEISURE ROOM $2.307B (+1.3%) TOTAL REVENUE 15.2M (+4.0%) ROOMS AVAILABLE $220.84 (-0.6%) GROUP ROOM $129M (+1.3%) 11.3M (+3.3%) CHICAGO HOTEL ROOMS OCCUPIED TAX REVENUE $131.46 (+5.4%) CONTRACT ROOM CHOOSE CHICAGO / 13 MEETINGS & CONVENTIONS MCCORMICK PLACE 61 5O 14 8 Total future New major future Will be convening Choosing to meet in Chicago for meetings secured meetings and in Chicago for the the first time in 10 years or more conventions first time 2,498 TOTAL MEETINGS BOOKED IN 2017 SIGNIFICANT CONFIRMATIONS 2.64M Room Night Production Institute of Food Technologists Annual Meeting & Food Expo confirmed Chicago as the home of the 5% Increase and surpassed 2017 goal IFT Annual Meeting on an annual basis from 2020 878,000
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