Item 7

Tourism & Events Department 7506 E. Indian School Road Scottsdale, AZ 85251 480.312.7177

To: Linda Dillenbeck, Chairperson Tourism Development Commission

From: Steve Geiogamah, Tourism Development Manager

Date: April 16, 2019

Subject: FY 2019/20 Experience Scottsdale Destination Marketing Guide & Performance Measurements

As part of the destination marketing service agreement between the city and Experience Scottsdale, the city requires the delivery and approval of the annual destination marketing program and performance measurements. Both are intended to reflect current industry priorities and contractual requirements.

Performance measurements consider current year to date measurements, evaluation methods, tourism development investments, and market conditions. Performance measurements include a comparison to FY 2017/18 actual results, FY 2018/19 goals and year-to-date achievements.

The FY 2019/20 Destination Marketing Plan and performance measurements will be incorporated into the new agreement.

Requested Action If the Commission wishes to recommend the FY 2019/20 Experience Scottsdale marketing guide and performance measurements action by motion is required. If the Commission wishes to consider additional changes, staff will proceed accordingly.

STRATEGIC BUSINESS PLAN 2019–2020 DRAFT

CONTENTS

02 A Message From Our Leadership 04 Who We Are 08 What We Do 11 Where We Target 15 How We Target 24 Why We Measure 31 Industry Outlook 34 Thank You 1 A MESSAGE FROM OUR LEADERSHIP

THIS IS AN EXCITING TIME FOR SCOTTSDALE’S Experience Scottsdale has been honored to promote TOURISM INDUSTRY. Our hospitality partners Scottsdale’s tourism industry for 32 years. Over experienced one of their strongest years since those years, we’ve seen the community evolve. the Great Recession, and all indications point to We’ve seen hospitality businesses rally together another healthy year ahead for Scottsdale. to champion the region. We’ve seen the tangible benefits of Scottsdale’s millions of visitors, from At 21,000 workers strong, tourism continues to new jobs to increased tax revenues. be one of the city’s largest industries. All those employees welcome 9 million domestic travel- And all the while, we’ve shaped the lens through ers who visit Scottsdale each year. And because which the world views our desert destination – a travelers keep coming, Scottsdale maintains an relaxing, rejuvenating, exciting and inspiring desti- unparalleled quality of life. Visitor-paid tax dollars, nation. And we’ve helped secure these important which account for more than one-fifth of all city visitors year after year. collections, support tourism event development, capital improvement projects, critical city services, We are Experience Scottsdale, and we look forward and more. to working with you.

This is an exciting time for Scottsdale’s visitors as Sincerely, well. In recent years, the private and public sectors have invested in the community, resulting in new signature to come attractions and restaurants, renovated hotels and resorts, upgraded parks and stadiums, and new Rachel Sacco Doug Heaton and expanded events. Opportunities abound, President & CEO Board Chair giving travelers more choices than ever, whether they’re coming for a vacation or meeting.

2 3 >> A 501(c)6 nonprofit destination >> Guided by Experience Scottsdale’s marketing organization founded Board of Directors, 25+ volunteer, in 1987. community leaders.

>> A team of 45 productive, positive >> Charting a path with a vision to people passionate about establish Scottsdale as a year- Scottsdale, its businesses, its round, luxury travel destination. residents and its visitors. WHO WE ARE WE ARE EXPERIENCE SCOTTSDALE.

>> Delivering on the mission to >> Aligning with more than 400 enhance the local community by hospitality and tourism partners promoting the Scottsdale area as to grow the industry. a luxury destination for meetings, events and leisure travel. >> Mindfully administering private and public-sector revenue via >> Strategically executing business membership dues, bed-tax strategies under four key objectives. collections and State of Arizona, Prop. 302, dollars. >> Working in tandem with City of Scottsdale and Town of Paradise Valley leaders and staff.

4 WHO WE ARE: BOARD OF DIRECTORS, 2019-2020

*Doug Heaton, Chair Joe Iturri Kelley Moreton *Mike Surguine Hilton Scottsdale Resort & The Saguaro Scottsdale Four Seasons Resort Scottsdale Sanctuary on Camelback Villas/DoubleTree Resort at Troon North Mountain Resort & Spa by Hilton Paradise Valley- +*Mike King Scottsdale Gammage & Burnham Mike Nealy +City Manager Jim Fiesta Bowl Thompson *Kate Birchler, Vice Chair Alan Klein City of Scottsdale Macerich Embassy Suites by Hilton Councilman Guy Phillips Scottsdale Resort City of Scottsdale Dr. Gerd Wuestemann *Andrew Chippindall Scottsdale Arts Mountain Shadows Drena Kusari *Dena Roady Lyft Inc. Hyatt Regency Scottsdale *Executive Committee Linda Dillenbeck Resort & Spa at Gainey Ranch Member The Image Group Brandon Maxwell +Ex-officio Member M Culinary Concepts Dennis E. Robbins Stuart I. Graff Scottsdale Charros – The Frank Lloyd Wright Gabi Messinger Charro Foundation Foundation Yelp! +*Rachel Sacco Sara Grauf *Jack J. Miller Experience Scottsdale San Francisco Giants Fairmont Scottsdale Princess Kris Strauss *John H. Holdsworth Vice Mayor Scott Moore Troon Xclusive Enterprises Town of Paradise Valley

5 WHO WE ARE: FULL- & PART-TIME STAFF

EXECUTIVE OFFICE Nancy Fortenberry Erika Pumphrey Emily Wininger Visitor Center Concierge Senior National Sales Manager Tourism Sales Manager Rachel Sacco President & CEO Sue Ritchie Stephanie Flick Mary Carlson Visitor Center Concierge National Sales Manager Tourism Coordinator Marilyn Jones Executive Assistant Judi Simons Kimberly Hart, CMP Visitor Center Concierge National Sales & Canadian COMMUNITY & Account Manager GOVERNMENT MARKETING Diane Torosian AFFAIRS Visitor Center Concierge Tracy Jackson, CMP Caroline Stoeckel National Sales Manager Rachel Pearson, ABC Vice President of Marketing Shana Zimmerman Vice President of Community & Visitor Center Concierge Shannon Johnson Government Affairs Kelly Triplett National Sales Manager Director of Marketing Stephanie Pressler COMMUNICATIONS Alleson Dunaway Director of Community Affairs Adam Haught Destination Services Manager Marketing Specialist Laura McMurchie Vice President of Kelsey Guthrie, CMP ADMINISTRATION JoAnne Zeterberg Communications Senior Events Project Manager Director of Creative Services Genia Kehayes, CPA Jennifer Duffy Sharon Strauss Vice President of Finance & Charity Snyder Director of Communications Sales Coordinator Administration Art Director Christina La Porte Janice Park Eric Paschal, MCITP, MCTS Sue Jacobs Communications Manager Sales Assistant Director of IT Senior Graphic Designer Emily Lawrence Jonathan Hardy Connie Waldo Communications Coordinator TOURISM & Systems Administrator Web Developer MEMBERSHIP Regina Stover Cindy Smith Halie Sutton Communications Assistant Deanne Boynton Grupp Accountant Social Media & Digital Vice President of Tourism Marketing Coordinator Marilyn Smith CONVENTION SALES & Sarah Kearney HR Administrator / Accounts Jason Martin SERVICES Director of Membership Receivable Warehouse Specialist Kelli Blubaum, CMP Nicole Krekeler Valerie Cherry Sharon Utsunomiya Vice President of Convention Tourism Sales Manager Database Coordinator Visitor Center Concierge Sales & Services

6 7 WHAT WE DO

EXPERIENCE SCOTTSDALE’S VISION IS TO AD CAMPAIGN REFRESH ESTABLISH SCOTTSDALE AS A YEAR-ROUND, Experience Scottsdale launched our Absolutely LUXURY TRAVEL DESTINATION. Our mission is Scottsdale advertising campaign in 2016. After to enhance the local community by promoting three successful years deploying these ads in high- the Scottsdale area as a luxury destination for end publications and our top markets for visitation, meetings, events and leisure travel. Our efforts Experience Scottsdale is working on refreshing fall into four key objectives. the campaign as a part of the destination brand’s continuous evolution to appeal to current and 1. GENERATE VISITOR-RELATED ECONOMIC future travelers. Like the previous iteration, based IMPACT FOR THE SCOTTSDALE MARKET on brand and consumer research, the advertisements AREA will offer an authentic sense of place combined with tongue-in-cheek taglines about Scottsdale’s wild, 2. FOSTER POSITIVE RELATIONSHIPS WITH hot desert. The updated Absolutely Scottsdale CUSTOMERS AND STAKEHOLDERS ads will begin appearing in fall 2019.

3. RUN AN EFFECTIVE BUSINESS SUMMER PROMOTIONS As evidenced by our holiday campaign, which has 4. ENHANCE THE LONG-TERM HEALTH AND resulted in 18% occupancy growth in November/ DEVELOPMENT OF THE DESTINATION December over the course of seven years, long- term investment is needed to move the needle Each year, Experience Scottsdale maintains during our need periods. In the second year of existing programs that provide a consistent our summer campaign, Experience Scottsdale is return on investment while implementing new elevating our messaging for leisure visitors and programs that allow us to remain competitive. meeting planners to drive additional visitation In fiscal year 2019-20, these enhanced Memorial Day through Labor Day. Experience strategies include: Scottsdale’s Summer Meetings Rebate Program 8 generated $10.3 million in future economic impact is Experience Scottsdale’s second year supporting in the first nine months of the program. Experience the partnership. This fiscal year’s initiatives are Scottsdale is extending the program through 2022 focusing more on the United Kingdom to support and investing in lead generation tools that strategi- increased, non-stop international air service to cally target planners with summer business oppor- Phoenix Sky Harbor International Airport. The tunities. On the leisure side, Experience Scottsdale increased marketing also comes on the heels of once again is deploying messaging in markets likely Phoenix and Scottsdale hosting the grand finale of to travel in the summer: Phoenix, Tucson and Los Brand USA’s mega familiarization tour, during which Angeles. Experience Scottsdale also is expanding 100 U.K. and Irish travel professionals experienced our reach by targeting New York and Chicago, the destination firsthand. Through this partnership, Scottsdale’s top overall markets for visitation, with Scottsdale is being featured in layered advertising digital promotions. campaigns, including print, digital and online. All marketing efforts are directing potential BRAND USA PARTNERSHIP visitors to Brand USA’s dedicated landing page Experience Scottsdale is expanding efforts to for Scottsdale. reach international audiences by partnering with the Arizona Office of Tourism to leverage market- MEETING PLANNER OUTREACH ing conducted by Brand USA, the nation’s official Experience Scottsdale is focusing on increasing destination marketing organization. The Arizona bookings from meeting planners both near and far Office of Tourism invests $1 million into its partner- this fiscal year. Experience Scottsdale is expanding ship with Brand USA, with Experience Scottsdale the parameters of our Site See & Fly Free program, and select Arizona cities reaping the benefits. This which invites planners with active RFPs to explore

9 Scottsdale. Experience Scottsdale also is growing outlets with pitches and press trip invitations our outreach to local planners, who offer oppor- throughout the year. To make Scottsdale information tunities for summer bookings and help safeguard and footage more readily available to digital against a potential economic downturn, a period journalists and social influencers, Experience when corporate and association groups tend to Scottsdale also is overhauling our pressroom and stay closer to home. In addition, based on the capturing new b-roll footage of the destination. feedback of Scottsdale’s Customer Advisory Board, we will enhance the visibility of our organization and CITY EVENT VENUE PROMOTION promotions to meeting planners by revamping our Experience Scottsdale is continuing to work website, developing a presence on social media, with the City of Scottsdale to promote the City’s and improving the look and feel of our messages. event venues, such as WestWorld of Scottsdale, We also will work to increase opportunities for Scottsdale Stadium and Scottsdale Sports planners to take advantage of our destination Complex. We also are working closely with services, further explore the distinct facets offered City destinations, such as Old Town Scottsdale, in Old Town, and enrich our familiarization tours with Scottsdale Airport, Scottsdale Arts and Western additional experiences unique to our destination. Spirit: Scottsdale’s Museum of the West, to promote these amenities and attractions through our DIGITAL MEDIA STRATEGY marketing, communications, convention sales As more consumers turn to digital media on mobile and services, and tourism programs. devices, Experience Scottsdale is focusing on an earned digital media strategy this fiscal year. Experience Scottsdale is targeting specific digital

10 WHERE WE TARGET

RESEARCH IS CRITICAL TO THE SUCCESS OF and public relations efforts in New York, Chicago, EXPERIENCE SCOTTSDALE’S INITIATIVES, Los Angeles and San Francisco. Experience ENSURING OUR PROGRAMS ARE COST-EFFICIENT Scottsdale’s marketing and sales efforts also AND EFFECTIVE IN ATTRACTING THE RIGHT reach into our top Canadian markets: Toronto, BUSINESS TO SCOTTSDALE. With findings from Vancouver, Edmonton and Calgary. Our public our biennial leisure visitor research study, the relations and tourism efforts allow us to reach Visitor Industry Customer Analysis, Experience additional international and overseas markets Scottsdale primarily targets domestic marketing as well.

11 WHERE WE TARGET: DOMESTIC LEISURE VISITATION

TOP U.S. Revenue Producing Markets1

6. Seattle

9. Minneapolis 11. Boston

4. San Francisco 1. New York City 2. Chicago 10. Philadelphia 8. Washington, D.C. 5. Denver

3. Los Angeles

12. San Diego

7. Dallas

8.9 million U.S. visitors to Scottsdale2 Z Z

Scottsdale’s Luxury Scottsdale’s Average Domestic 49% Leisure Traveler1 Overnight Traveler2 Day Trip Visitors 49 years median age 47.8 years average age $218,000 median $77,600 average household income household income

Staying an average of Staying an average of 2.39 nights 4.0 nights

Spending an average of $372 Spending $279 per person daily daily on room expenditures 65% of Scottsdale’s average 51% Spending an average of $716 visitors stay overnight in Overnight daily on property hotels/resorts Visitors 32% of Scottsdale’s luxury visitors have visited the city before

1Experience Scottsdale Visitor Industry Customer Analysis 2017 2City of Scottsdale’s Longwoods International Scottsdale 2017 Visitor Research

12 WHERE WE TARGET: INTERNATIONAL LEISURE VISITATION

TOP International Markets3

3.6 million Mexican visitors to Arizona 894,200 Canadian visitors to Arizona

16% staying overnight Staying 17.0 nights in Arizona

Spending $839 per party per trip Spending $1,218 per party per trip

129,600 German visitors 114,600 U.K. visitors 103,300 French visitors to Arizona to Arizona to Arizona

40 years average age 46 years average age 43 years average age

96% traveling for leisure 94% traveling for leisure 97% traveling for leisure

3Arizona Office of Tourism 2017 Market Profiles

13 WHERE WE TARGET: MEETINGS MARKET

Experience Scottsdale focuses on corporate (healthcare, high tech, financial, manufacturing, insurance and retail), association (major conventions, board meetings, training/educational seminars and profession- al/technical meetings) and niche meetings (sports, government, social, military, educational, religious and fraternal meetings).

Resort and Upper-Moderate Hotel Occupancy4

45% Meetings

55% Leisure

Experience Scottsdale Bookings By Market

20% Association

70% Corporate

10% Niche

Meetings from third-party planners account for more than half of Experience Scottsdale’s bookings, largely due to Experience Scottsdale’s relationships with companies such as AMEX, HelmsBriscoe, ConferenceDirect, Experient, Global Cynergies and HPN.

4 STR, Inc., Scottsdale-Area Leisure vs. Group Business, 2006-2018. Republication or other re-use of this data without express written permission of STR is strictly prohibited.

14 HOW WE TARGET MARKETING

EXPERIENCE SCOTTSDALE BRANDS THE SCOTT- most effective outlets. Our efforts – including SDALE MARKET AREA AS A LUXURY LEISURE AND regional media, high-end travel and lifestyle MEETINGS DESTINATION USING ADVERTISING, publications, and social media – effectively HIGH-END COLLATERAL AND PUBLICATIONS, capture the interest of potential baby boomer, DIGITAL AND EMAIL OUTREACH, SOCIAL MEDIA, millennial and Gen X travelers in key feeder AND EVENT MARKETING. markets.

MEDIA PLAN SEASONAL CAMPAIGNS Experience Scottsdale develops a media plan Experience Scottsdale develops seasonal marketing based on extensive research and strategic plan- campaigns to drive additional visitation during need ning to align Scottsdale’s brand message with periods: the holidays and summer. These targeted appropriate mediums that best reach our target campaigns use outdoor advertising, online mediums, audiences. With intense competition in the travel and various other efforts to strengthen destination marketplace, Experience Scottsdale looks for the awareness in key feeder markets.

15 RELATIONSHIP MARKETING also maintain an active presence on social media Experience Scottsdale maintains permission-based channels such as Facebook, Twitter, YouTube, databases of leisure travelers, meeting planners Instagram and Pinterest. Experience Scottsdale and travel professionals for direct mail and email also uses videos, a local expert program, and that keeps Scottsdale top of mind with people who downloadable guides to provide greater access have visited, expressed interest in visiting, or fit our to information online. target audience demographics. EVENT MARKETING PROMOTIONAL MATERIALS To help drive incremental visitation to the destination, Experience Scottsdale produces a variety of Experience Scottsdale supports special events by publications for leisure travelers, including the incorporating them into our advertising, guides, Scottsdale Visitor Guide; Hiking, Biking & Trail website, emails and social media channels. Guide; Old Town Guide; and monthly Calendar of Experience Scottsdale provides visitor services Events. To assist meeting planners, travel agents at several events, and we work with event producers and tour operators, Experience Scottsdale produces to secure new events that fill room nights and the Scottsdale Meeting & Travel Planners Guide attract new customers to Scottsdale. and offers high-quality promotional materials that can be used to sell Scottsdale, including brochures, VISITOR SERVICES maps, photos and videos. Experience Scottsdale operates full-service Tourist Information Centers in Scottsdale Fashion Square DIGITAL MARKETING and The Purple Saguaro in Old Town Scottsdale. ExperienceScottsdale.com is Experience Scottsdale’s Concierges provide visitors with destination infor- primary website. We drive visitors to the website mation, member brochures and personal help. via advertising, digital marketing, pay-per-click advertising and search marketing programs. We

16 HOW WE TARGET COMMUNICATIONS

EXPERIENCE SCOTTSDALE GARNERS POSITIVE When possible, Experience Scottsdale also attends PUBLICITY FOR THE SCOTTSDALE MARKET AREA travel trade shows to pitch story ideas and further AS A LUXURY TRAVEL AND MEETINGS DESTI- develop media relationships. NATION THROUGH TARGETED, POSITIVE MEDIA EXPOSURE IN PRINT, BROADCAST, ONLINE AND PRESS TRIPS & CONFERENCES SOCIAL MEDIA. IN MARKETS WHERE ADVERTIS- Experience Scottsdale encourages qualified jour- ING DOLLARS ARE SCARCE OR NONEXISTENT, nalists to explore Scottsdale, as media who visit COMMUNICATIONS PROGRAMS ARE CRITICAL typically produce better coverage and write more IN GENERATING INTERTEST. frequently about the destination than those who do not. Experience Scottsdale facilitates individual TRADE SHOWS & MEDIA MISSIONS and group visits by providing story ideas and co- To build relationships and target high-caliber ordinating customized itineraries with the support journalists with strategic messages, Experience of our members. Group tours are often produced Scottsdale conducts one-on-one editorial meet- around specific drivers or special events to attract ings, and hosts receptions and events in key cities. niche media.

17 Experience Scottsdale also hosts a biennial travel consistent presence in these markets. Experience writers conference, Travel Classics West, which Scottsdale also contracts with a domestic agency provides an additional way to introduce top editors with offices in New York and Los Angeles to help and freelance writers to the destination. When the us further penetrate these media-rich cities. In ad- conference is in another city, Experience Scottsdale dition, Experience Scottsdale partners with a local representatives attend as sponsors to develop and golf-focused public relations agency. Our represen- maintain media relationships. tatives help build relationships with media in their respective markets, respond to media requests, MEDIA RESOURCES distribute press materials, coordinate media visits Experience Scottsdale’s resources provide story to Scottsdale, and advise Experience Scottsdale ideas, enhance editorial coverage and help Experi- regarding opportunities to further our positioning. ence Scottsdale build relationships with media.

• Press Kits: Experience Scottsdale’s press kits are available online and used for media fulfillment. Visiting media are encouraged to download the press kits from the website.

• Press Releases: Experience Scottsdale disseminates news and seasonal releases, which often incorporate information submitted by Experience Scottsdale members. Some releases are published in other languages.

• Customized Pitches: Customized pitches allow Experience Scottsdale to tailor the message to a publication and its audience to secure thorough, high-value coverage.

• Destination Images: Experience Scottsdale provides media with high-definition video footage and images to enhance Scottsdale editorial.

• Monthly E-Newsletter: Our monthly newsletter updates more than 4,100 domestic and international media on what’s new in Scottsdale.

PUBLIC RELATIONS REPRESENTATIVES Experience Scottsdale contracts with international public relations representatives in Canada, the United Kingdom and Germany to have a more

18 HOW WE TARGET CONVENTION SALES

EXPERIENCE SCOTTSDALE PROVIDES DESTINA- agreements with Cvent and Starcite to generate TION EDUCATION TO MEETING PLANNERS AND incremental leads for the destination. Experience ASSISTS WITH SECURING SPACE AND SERVICES Scottsdale does not produce a convention calendar. FOR MEETING AND INCENTIVE PROGRAMS. TRADE SHOWS & SALES MISSIONS LEADS Experience Scottsdale connects face-to-face with Experience Scottsdale customizes all meeting plan- meeting planners at select trade shows, which ners’ requests for accommodations, meeting space typically generate immediate leads for Experience and other types of services. Experience Scottsdale Scottsdale members. Often in conjunction with a works closely with both clients and members to trade show, Experience Scottsdale will conduct ensure a great match between the needs and wants sales calls to connect with additional planners. of our clients and the products and services of our Members frequently partner with Experience members. In addition to leads generated from Scottsdale for these events, increasing Scottsdale’s our own efforts, Experience Scottsdale also has presence in the markets.

19 FAMILIARIZATION TOURS & SITE INSPECTIONS Experience Scottsdale also works to keep Scott- To give clients a firsthand experience of Scottsdale, sdale top of mind with media from key meetings Experience Scottsdale conducts two large meeting publications. In addition, Experience Scottsdale planner familiarization tours (FAMs) each year – the creates meeting planner promotions to target Sunsational FAM in the spring and the Scottsdale specific geographic areas, such as Canada, and Sonoran FAM in the fall. In addition to these larger to promote business during need times for the FAMs, Experience Scottsdale frequently hosts hotels and resorts. smaller niche FAMs. These FAMs provide an opportunity for members to showcase their DESTINATION SERVICES properties and services to highly qualified meeting Experience Scottsdale efficiently matches planners’ planners who are actively considering Scottsdale requests for destination management services, for future programs. In addition to FAMs, smaller off-property venues, speakers, wholesale gifts, and and more customized site inspections are coordi- other types of services with member businesses. nated throughout the year for qualified clients. Experience Scottsdale also helps planners boost attendance for their programs by providing compli- CLIENT OUTREACH mentary materials such as photos, videos, brochures, Clients are contacted during the year via direct visitor guides and welcome letters. mail, phone calls and emails to generate aware- ness, keep Scottsdale top of mind, and update SALES REPRESENTATIVE customers on new amenities and products in Experience Scottsdale works with a sales repre- Scottsdale. sentative in Canada. Our Canadian representative augments our efforts by responding to industry ADVERTISING & PUBLIC RELATIONS requests, participating in trade shows, and con- Experience Scottsdale reaches meeting planners ducting sales missions to drive meetings business through advertising, email blasts, digital efforts, to Scottsdale. and online RFP tools such as Cvent and Starcite.

20 HOW WE TARGET TOURISM

EXPERIENCE SCOTTSDALE PROVIDES DESTINA- Scottsdale introduces new itinerary ideas to enhance TION EDUCATION TO TRAVEL ADVISORS, TOUR the experience for customers and increase the OPERATORS, AIRLINE VACATION DIVISIONS, number of nights booked for a Scottsdale vacation. AND INTERNATIONAL MEETINGS GROUPS. WE HELP TRAVEL PROFESSIONALS BEST TRADE SHOWS & SALES MISSIONS CAPTURE THE SCOTTSDALE EXPERIENCE Experience Scottsdale connects face-to-face with FOR THEIR CLIENTS, AND ENSURE SCOTTSDALE travel professionals at select trade shows, which STANDS OUT AS A UNIQUE DESTINATION IN generate immediate leads for Experience Scotts- TOUR OPERATOR PRODUCT INVENTORIES dale members. In addition, Experience Scottsdale THROUGHOUT THE WORLD. conducts sales missions, client events and ed- ucational seminars in key markets to cultivate LEADS relationships with new clients and meet with long- Experience Scottsdale generates leads for members, term clients. During one-on-one client meetings, including Scottsdale-area hotels. Once a travel Experience Scottsdale reviews travel catalogues professional has established a relationship with to ensure that area hotels and resorts are properly a Scottsdale market area hotel, Experience featured within a Scottsdale-branded section,

21 prominently featured in the catalogue, or highlighted fessionals include Scottsdale promotional pieces on the cover. with itineraries for clients who have purchased a Scottsdale vacation. FAMILIARIZATION TOURS & SITE INSPECTIONS Experience Scottsdale hosts familiarization tours TOURISM REPRESENTATIVES (FAMs) for travel professionals to increase their Experience Scottsdale works with trade represen- overall knowledge of the destination by experienc- tatives in the United Kingdom, Germany, Canada ing it firsthand. These FAMs and site inspections and Mexico. Our representatives respond to travel provide an opportunity for members to showcase industry requests, participate in trade shows, and their properties, services and events to travel conduct educational seminars and sales missions professionals who are actively seeking new to promote tourism to Scottsdale. product to sell.

PRODUCT TRAINING SEMINARS Experience Scottsdale conducts in-person and online product training sessions for travel industry clientele and reservation agents who sell Scotts- dale hotels and activities. These seminars are a valuable tool for increasing room-night bookings to the area – the more information each agent absorbs, the easier the destination is to sell to the leisure traveler.

TRADE COOPERATIVE MARKETING To drive more travelers to purchase Scottsdale vacation packages, Experience Scottsdale partners with international and domestic tour operators to create trade cooperative marketing campaigns in their respective cities and countries. These promo- tions are organized around seasonal travel pack- ages or a Scottsdale vacation contest. Experience Scottsdale matches the nominal cost incurred by the tour operator to execute the promotion and in turn receives exposure in every medium of the pro- motion (e.g. print ads, direct mail, in-store displays).

SERVICES Experience Scottsdale helps travel profession- als sell Scottsdale by providing complimentary materials such as photos, videos, brochures, maps, visitor guides and itinerary ideas. Many travel pro-

22 23 WHY WE MEASURE

TO DETERMINE EXPERIENCE SCOTTSDALE’S IMPACT AND THE HEALTH OF THE LOCAL TOURISM INDUSTRY, EXPERIENCE SCOTTSDALE COMMISSIONS RESEARCH AND REPORTS FROM MARKET LEADERS IN BENCHMARKING, DATA ANALYSIS AND ECONOMIC IMPACT. SUCH RESEARCH REVEALS HOW EXPERIENCE SCOTTSDALE IS MOVING THE NEEDLE FOR THE SCOTTSDALE MARKET AREA.

WHY WE MEASURE: ORGANIZATIONAL IMPACT

On average, Experience Scottsdale’s Experience Scottsdale’s tourism promotions annual direct economic impact is directly generate an average of $31.4 $247 million. million in annual state and local tax revenue.

THIS REVENUE SUPPORTS ESSENTIAL PUBLIC SERVICES AND IS ENOUGH MONEY TO PAY FOR:

police write4 THE SALARIES OF 498 OR THE SALARIES OF 830 POLICE OFFICERS AND PUBLIC SCHOOL FIREFIGHTERS TEACHERS

nature2 guide2 BUILDING 8 TRAILHEADS OR REPAVING 98 MILES IN THE MCDOWELL OF FOUR-LANE SONORAN PRESERVE CITY STREETS

Without these travel-generated revenues, each Scottsdale household would have to pay an average of $307 more in state and local taxes every year to maintain the same level of services.

24 WHY WE MEASURE: LODGING PERFORMANCE5

SCOTTSDALE VS. OTHER U.S. MARKETS

2018 (January – December)

Scottsdale Area* Phoenix Metro+ Top 25 Markets Total U.S.

Occupancy 69.8% 69.7% 73.6% 66.2%

Average Daily Rate $199.80 $129.78 $157.94 $129.83

Revenue Per Available Room $139.40 $90.42 $116.19 $85.96

SCOTTSDALE VS. OTHER U.S. MARKETS Percent Change – 2018 vs. 2017

6%

5%

4%

3%

2%

1%

0% Occupancy ADR RevPAR -1% █ Scottsdale Area* █ Phoenix Metro+ █ Top 25 █ Total US

*Includes all hotels in Experience Scottsdale’s membership, including properties in Scottsdale, Paradise Valley, Salt River Pima-Maricopa Indian Community, and a few in Phoenix +Includes Scottsdale area

5STR, Inc., December 2018. Republication or other re-use of this data without express written permission of STR is strictly prohibited.

25 SCOTTSDALE VS. WARM WEATHER COMPETITORS Percent Change – 2018 vs. 2017 8%

7%

6%

5%

4%

3%

2%

1%

0%

-1%

-2% Occupancy ADR RevPAR

█ Austin █ Dallas █ Los Angeles █ Palm Springs █ San Antonio █ San Diego █ Scottsdale █ Tucson

26 27 10-Year Scottsdale Area Tourism Industry Measurements6 80%

70%

60%

50% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

█ Occupancy

$200

$150

$100

$50 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

█ ADR █ RevPAR

In 2019, Scottsdale-area hotels and resorts are projected to experience ADR and RevPAR growth. Occupancy: +0.1% to 70.3% ADR: +2.9% to $208.42 RevPAR: +3.0% to $146.56

6STR, Inc., December 2018. Republication or other re-use of this data without express written permission of STR is strictly prohibited.

28 WHY WE MEASURE: GOLF PERFORMANCE7

SCOTTSDALE GOLF INDUSTRY VS. COMPETITIVE MARKETS

2018 (January – December)

Scottsdale Area Phoenix Metro Palm Springs Las Vegas

Course Occupancy 52.2% 51.5% 46.6% 51.3%

Average Rate Per $77.65 $55.26 $63.72 $47.14 Available Round

Revenue Per $40.52 $28.44 $29.71 $24.17 Available Round

SCOTTSDALE GOLF INDUSTRY VS. COMPETITIVE MARKETS Percent Change – 2018 vs. 2017

12%

10%

8%

6%

4%

2%

0%

-2%

Course Occupancy Average Rate Per Revenue Per -4% Available Round Available Round

█ Scottsdale Area █ Phoenix Metro █ Palm Springs █ Las Vegas

7ORCA, December 2018. Republication or other re-use of this data without express written permission of ORCA is strictly prohibited.

29 WHY WE MEASURE: MEETINGS INSIGHT8

Although Scottsdale faces tough competition, Scottsdale is viewed favorably in important meetings site considerations. When choosing a meetings site, the two most important considerations for meeting plan- ners are “safe environment” and “clean/attractive place.” Meeting planners give Scottsdale top marks in those two areas.

SCOTTSDALE AREA VS. COMPETITIVE MARKETS

Percent of Overall Meeting Planners

Have/Would Used in Past Plan to Use in Next Consider Two Years Two Years

Austin 58% 18% 16%

Nashville 55% 15% 15%

Phoenix 57% 15% 13%

San Diego 64% 23% 20%

Scottsdale 45% 13% 13%

Among Experience Scottsdale’s meeting planner clients, Scottsdale is viewed favorably compared to competitive markets like Austin, Nashville, Phoenix and San Diego. Such clients also consider Scottsdale to be the cleanest and safest environment of the competitive set.

SCOTTSDALE AREA VS. COMPETITIVE MARKETS

Percent of Experience Scottsdale’s Meeting Planner Clients

Have/Would Used in Past Plan to Use in Next Consider Two Years Two Years

Austin 87% 35% 34%

Nashville 87% 49% 46%

Phoenix 83% 45% 43%

San Diego 91% 66% 51%

Scottsdale 94% 56% 61%

8DestinationMAP Volume I and II, 2017. Republication or other re-use of this data without express written permission of STR, Inc., is strictly prohibited.

30 INDUSTRY OUTLOOK

THE HEALTH OF SCOTTSDALE’S TOURISM INDUS- MEETINGS BUSINESS11 TRY IS LARGELY RELIANT ON THE STRENGTH OF North American planners expect increases in THE NATIONAL AND GLOBAL TOURISM INDUSTRY. number of meetings, attendees, days and cost EXPERIENCE SCOTTSDALE MONITORS INDUSTRY per attendee PUBLICATIONS, RESEARCH AND NEWS TO STAY 71% of meeting planners prefer large metropolitan APPRISED OF TRENDS AND SHIFTS IN THE destinations INDUSTRY-AT-LARGE. Meeting planners expect a 0.8% increase in meet- LEISURE TRAVEL9 ings spending Domestic leisure travel to grow 1.8% in 2019 20% of meeting planners would reduce number of 60% of Americans consider leisure travel at least a nights to manage costs somewhat high budget priority AIR TRAVEL12 75% of affluent travelers participate in at least one 4.59 billion passengers expected to travel by air organized tour or activity in 2019

BUSINESS TRAVEL10 International air passenger traffic to grow6% Domestic business travel to grow 1.8% in 2019 in 2019

“Travel to and within the U.S. grew faster in 2018 North American air passenger demand to grow than in 2017. While international and domestic lei- by 5% in 2019 sure growth was steady, the most impressive news is that business travel had its best year since 2010.” – U.S. Travel Association Senior Vice President of Research David Huether

31 LODGING INDUSTRY13 “[W]e expect our first year without an increase in shutdown, and you have a recipe for diminished occupancy since 2009. Combine more pressure RevPAR growth. Performance growth of any rate on occupancy levels with already subdued pricing will still take the industry to another record-breaking confidence, concerns over labor costs, a cooling level nationally, but plenty of individual markets economic environment, and the negative senti- and hotels are feeling the slowdown on their bottom ment brought on by the recent government line.” – STR President & CEO Amanda Hite

2019 US. Lodging Industry Growth Forecasts

3.0%

2.5%

2.0%

1.5%

1.0%

0.5%

0.0%

-0.5% Occupancy ADR RevPAR

█ STR █ CBRE █ PWC

INTERNATIONAL TRAVEL14 “This is more in line with historical growth trends International tourist arrivals increased 6% to 1.4 and will be supported by things like stable oil billion in 2018 prices and improving air connectivity, which helps

Inbound global visitors rose 4% in North America diversify generating markets.” – United Nations in 2018 World Travel Organization Secretary-General Zurab Pololikashvili International arrivals forecasted to grow 3% to 4% in 2019

9US Travel Association Forecast, Fall 2018; Destination Analysts’ The State of the American Traveler; 2019 Skift Megatrends 10US Travel Association Forecast, Fall 2018; U.S. Travel Trends Index, December 2018 11American Express Meetings & Events 2019 Global Meetings and Events Forecast 12International Air Transport Association, December 2018 13Hotel News Now, January 2019; CBRE Hotel Horizons Dec. 2018; PwC Hospitality Directions US: January 2019 14United Nations World Tourism Organization, January 2019; Hotel News Now, January 2019

32 33 THANK YOU TO EXPERIENCE SCOTTSDALE’S MEMBERS AND COMMUNITY PARTNERS

SCOTTSDALE TOURISM CITY OF SCOTTSDALE TOWN OF PARADISE VALLEY DEVELOPMENT COMMISSION Mayor W.J. “Jim” Lane Mayor Jerry Bien-Willner Linda Dillenbeck, Chair The Image Group Councilwoman Suzanne Klapp Vice Mayor Scott Moore

Camille Hill, Vice Chair Councilmember Virginia Korte Councilwoman Ellen Andeen Merestone Councilwoman Kathy Littlefield Councilman Paul Dembow Sherry Henry Councilwoman Linda Milhaven Councilwoman Julie Pace Grace Hospitality Councilman Guy Phillips Councilman Mark Stanton Ken McKenzie The Scottsdale Resort at McCormick Councilwoman Solange Whitehead Councilwoman Anna Thomasson Ranch City Manager Jim Thompson Richard Newman Sonesta Suites Scottsdale Gainey Ranch

David Winter Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch

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Media Schedule 2019-20 This plan is subject to change. Experience Scottsdale maintains the right to cancel or reschedule programs at any time. Final decisions will be made based on budget and space availability.

JULY 2019 • Arizona Republic (Scottsdale section) • Meetings & Conventions • Meetings Today • Pay-Per-Click Advertising • Social Media Advertising • YouTube.com Advertising

AUGUST 2019 • Facebook.com • Pay-Per-Click Advertising • Scottsdale Independent • Scottsdale Progress • Social Media Advertising • YouTube.com Advertising

SEPTEMBER 2019 • Arizona Office of Tourism Visitor Guide • Arizona Republic (Scottsdale section) • Elite Traveler – Sept/Oct/Nov • Meetings Today • Pay-Per-Click Advertising • Social Media Advertising • YouTube.com Advertising

OCTOBER 2019 • Arizona Republic (Scottsdale section) • Chicago Magazine • Golf Magazine • National Geographic Traveler – Oct/Nov • Los Angeles – Theater Advertising • Pay-Per-Click Advertising • Social Media Advertising • USAToday.com • YouTube.com Advertising

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NOVEMBER 2019 • AFAR – Nov/Dec • American Way • Arizona Republic (Scottsdale section) • Bon Appetit • Chicago Magazine • enRoute Air Canada • Social Media Advertising • Food & Wine • Ignite Canada – Nov/Dec • Links Magazine • Los Angeles – Radio • Los Angeles – Television • Los Angeles – Theater Advertising • Los Angeles – Uber/Lyft Advertising • Los Angeles Magazine • Meetings & Conventions • Meeting Professionals International • Meetings Today • New York Time’s T Travel • Pay-Per-Click Advertising • Scottsdale Progress • USAToday.com • WestJet’s Up! • YouTube.com Advertising

DECEMBER 2019 • American Way • Arizona Republic (Scottsdale section) • Bon Appetit • Connect • Elite Traveler – Dec/Jan/Feb • enRoute Air Canada • Food & Wine • Golf Magazine • Los Angeles – Theater Advertising • Meeting Professionals International • Meetings & Conventions • National Geographic Traveler – Dec/Jan • Pay-Per-Click Advertising • Scottsdale Independent • Social Media Advertising • WestJet’s Up! • YouTube.com Advertising

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JANUARY 2020 • AFAR – Jan/Feb • Arizona Republic (Scottsdale section) • Canada – Weather Channel (television + digital) • Canada – Calgary, Edmonton and Toronto – Radio and Television Traffic Sponsorships • Canada – Toronto – Out of Home • Canada – Vancouver – Radio • Chicago – Out of Home • Chicago – Radio • Chicago – Television • Chicago – Uber/Lyft Advertising • Food & Wine • Golf Channel – Chicago, New York, Los Angeles • Golf Magazine • Links Magazine • Los Angeles – Magazine • Meeting Professionals International • Meetings & Conventions • Meetings Today • New York – Out of Home • New York – Radio • New York – Television • New York – Uber/Lyft Advertising • New York Time’s T Travel • Pay-Per-Click Advertising • Social Media Advertising • WestJet’s Up! • YouTube.com Advertising

FEBRUARY 2020 • American Way • Arizona Republic (Scottsdale section) • Canada – Calgary, Edmonton and Toronto – Radio and Television Traffic Sponsorships • Canada – Vancouver – Radio • Canada – Weather Channel (television + digital) • Chicago – Out of Home • Chicago Magazine • enRoute Air Canada • Golf Magazine • Links Magazine • Meetings & Conventions • Meetings Today • National Geographic Traveler – Feb/March • New York – Out of Home • New York Time’s T Travel • Pay-Per-Click Advertising

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• Scottsdale Progress • Social Media Advertising • WestJet’s Up! • YouTube.com Advertising

MARCH 2020 • AFAR – March/April • Arizona Republic (Scottsdale section) • Canada – Calgary, Edmonton and Toronto – Radio and Television Traffic Sponsorships • Canada – Weather Channel (television + digital) • Ignite Canada – March/April • Los Angeles Magazine • Meetings & Conventions • Pay-Per-Click Advertising • Social Media Advertising • YouTube.com Advertising

APRIL 2020 • Arizona Republic (Scottsdale section) • Pay-Per-Click Advertising • Scottsdale Independent • Social Media Advertising • YouTube.com Advertising

MAY 2020 • Arizona Republic (Scottsdale section) • Pay-Per-Click Advertising • Scottsdale Independent • Scottsdale Progress • Social Media Advertising • Summer – Markets and Platforms TBD • YouTube.com Advertising

JUNE 2020 • Arizona Republic (Scottsdale section) • Pay-Per-Click Advertising • Social Media Advertising • Summer – Markets and Platforms TBD • YouTube.com Advertising

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Communications Program of Work 2019-20 (*open to member participation) This plan is subject to change. Experience Scottsdale maintains the right to cancel or reschedule programs at any time.

JULY 2019

*Denver Media Mission – July 15-16 Experience Scottsdale’s communications, marketing, tourism and convention sales departments will partner to host an event for Denver-area media, meeting planners and travel professionals at a Colorado Rockies game. This event will give participating members the chance to present their company’s information to media and clients in this key feeder market. While Denver is a small media market, it ranks fifth for domestic feeder cities to Scottsdale and is particularly important in luring these visitors during Scottsdale’s peak season. Increased direct flights from Denver to Phoenix, Colorado Rockies spring training at the Salt River Fields at Talking Stick, and Experience Scottsdale’s targeted marketing in the region have led to a steady increase in Denver-area visitation to Scottsdale. . Participation Cost: $850 (plus travel expenses) . Estimated Media Attendance/Interaction: 10-15 journalists . Location: Denver, Colo. . Experience Scottsdale contact: Jen Duffy at [email protected] or 480-889- 2716

*Arizona Governor’s Conference on Tourism – July 22-24 The annual Arizona Governor's Conference on Tourism provides the state's tourism stakeholders the opportunity to network with peers, learn from expert panelists, draw inspiration from keynote speaker, and celebrate our industry's accomplishments . Participation Cost: varies. Visit azgcot.com . Location: JW Marriott Tucson Starr Pass Resort & Spa

AUGUST 2019

*San Francisco Media Mission – Aug. 12-14 Experience Scottsdale’s communications team will host desk-side meetings and special events for media in the SF Bay Area market. The event will give participating members the chance to present their company’s information to media and clients in this key feeder market. San Francisco ranks fourth for visitation to Scottsdale with very high spend. . Participation Cost: TBD . Estimated Media Attendance/Interaction: 30 San Francisco-area journalists . Location: San Francisco, Calif. . Experience Scottsdale contact: Jen Duffy at [email protected] or 480-889-2716

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SEPTEMBER 2019

*Scottsdale Sonoran Meetings FAM The communications team will work with the convention sales team to host 2-3 meetings journalists as part of this meeting planner familiarization tour. This FAM trip gives media the opportunity to discover Scottsdale’s meeting venues and amenities as well as to interact with their readers – the meeting planners. The host property is The Scott, but media will visit myriad locations. . Participation Cost: Donated services . Estimated Media Attendance/Interaction: 2-3 journalists covering the meetings market . Location: Scottsdale, Ariz. . Experience Scottsdale contact: Christina La Porte at [email protected] or 480- 889-2709

*Vancouver Media Mission – Sept. 25-26 Experience Scottsdale will coordinate a series of small media functions and meetings with key editors and freelance writers to pitch Scottsdale story ideas to travel, culinary and lifestyle journalists. . Participation Cost: TBD . Estimated Media Attendance/Interaction: approximately 20 . Location: Vancouver, B.C., Canada . Experience Scottsdale contact: Laura McMurchie at [email protected] or 480-429-2253

*Travel Classics West – Sept. 26-29 Travel Classics International is a premier travel writer conference that allows freelance travel writers the opportunity to meet with the industry's top editors. There is a low writer-to-editor ratio and pre- scheduled appointments, which gives the writers ample opportunities to have one-on-one time with the editors. This conference attracts top-notch editors from publications such as Sunset Magazine, National Geographic Adventure, Self, Robb Report, AARP Magazine, Hemisphere’s and more. . Participation Cost: Sponsorships vary . Estimated Media Attendance/Interaction: Approximately 15 editors and 35 freelance writers . Location: Whistler, B.C., Canada . Experience Scottsdale contact: Laura McMurchie at [email protected] or 480-429-2253

OCTOBER 2019

*Chicago Media/Client Event – TBD Experience Scottsdale’s communications team will host deskside meetings and special events to entertain Chicago-based media. Chicago is an important market for Scottsdale particularly in our peak season when rates are at a premium. Chicago ranks second in both visitation and revenue for Scottsdale, just behind New York City. . Participation Cost: TBD $850 (plus travel expenses) – space is limited . Estimated Media Attendance/Interaction: 15-20 Chicago-area journalists . Location: Chicago, Ill. . Experience Scottsdale contact: Jen Duffy at [email protected] or 480-889- 2716

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UK & Irish Group Press Trip -- TBD Experience Scottsdale will host magazine and newspaper travel media from the UK market to share the best of Scottsdale, including resorts, restaurants and attractions. . Participation Cost: Donated Services . Estimated Media Attendance/Interaction: 6 UK/Irish journalists . Location: Scottsdale, Ariz. . Experience Scottsdale contact: Laura McMurchie at [email protected] or 480-429-2253

AOT Toronto Media Mission . Participation Cost: TBD . Estimated Media Attendance/Interaction: approximately TBD . Location: TBD

NOVEMBER 2019

*Art in the Desert Group Press Trip – TBD Experience Scottsdale will craft an experience around the importance of art in Scottsdale. The trip will focus on everything from hotels with art galleries to the galleries of Old Town themselves, as well as big events like Canal Convergence and Scottsdale Contemporary Art Month activities. . Participation Cost: Donated services . Estimated Media Attendance/Interaction: 5 North American journalists . Location: Scottsdale, Ariz. . Experience Scottsdale contact: Jen Duffy at [email protected] or 480-889-2716

*Scottsdale for the Holidays – A series of individual press trips – Nov. 22-Dec. 9 The communications team will host media on individual press trips with short-lead times from cold- weather destinations to highlight the beauty of a bright (not white) Christmas set in the beauty of the Sonoran Desert, as well as the quality, quantity and value of holiday offerings around town and to help promote holidaysinscottsdale.com and special offers from host partners. . Participation Cost: Donated services . Estimated Media Attendance/Interaction: 3-5 U.S. and Canadian journalists . Location: Scottsdale, Ariz. . Experience Scottsdale contact: Emily Lawrence at [email protected] or 480- 424-1958

DECEMBER 2019

*Golf Media Classic presented by Experience Scottsdale – TBD Experience Scottsdale will support golf writer/personality Bill Huffman’s golf media event and play host to approximately 65 golf journalists. . Participation Cost: Donated services . Estimated Media Attendance/Interaction: 65 writers . Location: Scottsdale, Ariz. . Experience Scottsdale contact: Bill Huffman at [email protected]

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JANUARY 2020

Toronto Media Mission – TBD Experience Scottsdale will coordinate a series of small media functions and meetings with key editors and freelance writers to pitch Scottsdale story ideas to travel, culinary and lifestyle journalists. Despite more air lift from cities in Canada’s Western provinces, Toronto remains Scottsdale’s top city of origin and top city for spend. . Participation Cost: NA . Estimated Media Attendance/Interaction: approximately 15 . Location: Toronto, Ontario, Canada . Experience Scottsdale contact: Laura McMurchie at [email protected] or 480-429-2253

TravMedia International Media Marketplace – TBD (The Brandman Agency to represent Scottsdale) Scottsdale will meet with top editors and freelancers to share news at this one-day networking and relationship-building event. . Location: New York, NY . Experience Scottsdale contact: Christina La Porte at [email protected] or 480- 889-2709

UK Media Mission – TBD Experience Scottsdale will conduct a media mission in London focusing on editorial meetings with key U.K. freelance writers and editors. The United Kingdom is one of Arizona’s top overseas market for visitation. British Airways recently expanded service on the London Heathrow flight into Phoenix Sky Harbor International airport. . Participation Cost: N/A . Estimated Media Attendance/Interaction: Approximately 20 U.K. journalists . Location: London, England . Experience Scottsdale contact: Laura McMurchie at [email protected] or 480-429-2253

FEBRUARY 2020

New York City Mission – Week of Feb. 25 Experience Scottsdale will conduct media appointments with key editors and freelance writers to pitch Scottsdale story ideas and keep the destination top-of-mind with travel, culinary and lifestyle journalists. Working with The Brandman Agency, ES will foster existing media relationships as well as tap into new contacts. New York is the media hub of the U.S. and Scottsdale’s top revenue generating market. . Participation Cost: N/A . Estimated Media Attendance/Interaction: 50 New York-area journalists . Location: New York, New York . Experience Scottsdale contact: Laura McMurchie at [email protected] or 480-429-2253 or Jen Duffy at [email protected] or 480-889-2716

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MARCH 2020

ITB Trade Show + IMM Germany – March 4-6 Experience Scottsdale’s German-speaking rep will attend the International Tourismus Borse (ITB), an annual trade show that involves more than 50,000 tourism professionals from around the world, including travel agents, tour operators and media. Pre-scheduled appointments are arranged through Arizona’s German representative. North America is the primary markets for visitation to Arizona; however, the long-haul markets listed above are important visitors in key periods such as spring, holidays and summer. In addition, overseas visitors tend to stay longer and spend more money than North American visitors. . Participation Cost: N/S . Estimated Media Attendance/Interaction: 20-30 German journalists . Location: Berlin, Germany . Experience Scottsdale contact: Jen Duffy at [email protected] or 480-889-2716

*Ditch Day Group Press Trip – TBD The communications team will host a few short-lead media, bloggers and influencers to experience the ease of a quick Scottsdale getaway during Spring Training season. . Participation Cost: Donated services . Estimated Media Attendance/Interaction: 2-4 LA or San Francisco-based journalists . Location: Scottsdale, Ariz. . Experience Scottsdale contact: Jen Duffy at [email protected] or 480-889-2716

APRIL 2020

AOT Mexico Media/Trade Mission – TBD Experience Scottsdale will join the Arizona Office of Tourism and statewide DMOs for media/sales events in Mexico City and Guadalajara, Mexico. Visitors from Mexico and Canada still remain Scottsdale’s top international markets and travelers from Mexico City have a high propensity to seek out luxury resorts, spa, golf and dining. In addition, they travel over peak holiday periods that result on high revenue visit. . Participation Cost: varied. Participation is open to CVBs, Chambers and DMOs, and will be limited. . Estimated Media Attendance/Interaction: 50 key journalists . Location: Mexico City and Guadalajara, Mexico . Experience Scottsdale contact: Laura McMurchie at [email protected] or 480-429-2253

Canadian Group Press Trip . Participation Cost: Donated Services . Estimated Media Attendance/Interaction: 6 Canadian journalists . Location: Scottsdale, Ariz. . Experience Scottsdale contact: Laura McMurchie at [email protected] or 480-429-2253

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LA Media Mission – TBD Experience Scottsdale will conduct media appointments with key editors and freelance writers to pitch Scottsdale story ideas and keep the destination top-of-mind with travel, culinary and lifestyle journalists, as well as bloggers and influencers. . Participation Cost: N/A . Estimated Media Attendance/Interaction: 25 journalists . Location: Los Angeles . Experience Scottsdale Contact: Jennifer Duffy at [email protected] or 480-889- 2716

MAY 2020

*Spring Meeting Planner FAM – TBD The communications team will work with the convention sales team to host 2-4 meetings journalists as part of this meeting planner familiarization tour. This FAM trip gives media the opportunity to discover Scottsdale’s meeting venues and amenities as well as to interact with their readers, the meeting planners. . Participation Cost: Donated services . Estimated Media Attendance/Interaction: 2-4 journalists covering the meetings market . Location: Scottsdale, Ariz. . Experience Scottsdale contact: Christina La Porte at [email protected] or 480- 889-2709

*It’s That Hot – Summer in Scottsdale Press Trip The communications team will host a few short-haul market journalists with short-lead times to experience the quality, quantity and value of Scottsdale’s summer offers and publish before June 30, 2019. . Participation Cost: Donated services . Estimated Media Attendance/Interaction: 2-4 North American journalists . Location: Scottsdale, Ariz. . Experience Scottsdale contact: Jen Duffy at [email protected] or 480-889-2716

*IPW – May 30-June 3 IPW is the largest and most important international trade show held in the United States. Experience Scottsdale will have appointments with top international and domestic media and tour operators from Asia, Australia, Canada, Germany, Latin America, Mexico and United Kingdom. Experience Scottsdale members have the opportunity to participate in the bureau’s booth for $2,900 or PR representatives can choose to participate in the one-day media marketplace for $750. . Participation Cost: Varies – space is limited . Estimated Media Attendance/Interaction: More than 400 domestic and international journalists attend . Location: Las Vegas, NV . Experience Scottsdale contact: Laura McMurchie at [email protected] or 480-429-2253

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JUNE 2020

*Public Relations Society of America Travel & Tourism Conference – TBD This annual conference offers communications professionals in the travel and tourism arena the opportunity to learn about industry trends, technology and best practices from their peers as well as top travel media. . Participation Cost: Approximately $730-$930 for registration (plus travel). Visit www.prsa.org/Conferences/TravelTourism/ for information. . Location: xxx . Experience Scottsdale contact: Christina La Porte at [email protected] or 480- 889-2709

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Convention Sales Program of Work 2019-2020 This plan is subject to change. Experience Scottsdale maintains the right to cancel or reschedule programs at any time.

2019 2020

July August September October November December January February March April May June

Plan Your CME IMEX SITE Ohio FICP Holiday PCMA World Conf. NASC HelmsBriscoe MPI-WEC Trade Meetings Toronto Las Vegas Roadshow Annual Showcase Convening Congress Direct Sports ABC Grapevine Shows Denver Meeting Chicago Leaders Medical APM Symposium ASAE SITE Texas MPI Austin Mtgs PCMA Annual Roadshow Educon INTER ESPA Summit EnVision Education Meeting & Conf. [action] Annual Philadelphia Experient Conf. Expo M&C Direct AmEx Conf. Annual Columbus Destination Forum Supplier Charlotte Prestige Conf. eSpots Arizona Showcase National Northstart Connect Denver Mtg MIC of Meetings Marketplace Atlanta Colorado Louisville SITE SoCal Denver Holiday MPI-NCC SITE Mid- Event Annual Pharma West Conf. & Forum Roadshow DI Expo Convention Elite Sales & Meetings Services Summit New Orleans 5th Annual 9th Annual Experient Scottsdale Customer 33rd Annual 8th FAMs Sonoran Canadian FAM Fiesta Advisory Sunsational Annual FAM FAM Bowl FAM Board FAM Medical HB Meetings Onboarding FAM Live

Connect Southwest Denver Quebec Philadelphia Local NYC & Minneapolis Mid- Toronto Boston & Orange Sales Sales City Sales & Client Connecticut & St. Paul Atlantic Sales Rhode Island County Missions Mission Calls Pittsburgh Event Sales Calls Sales Sales Mission Sales Calls & San Sales Mission Mission & Client Diego Spa Sales Colorado Tucson Mission SH British & Client & D.C. Event Atlanta Events Calls Rockies Sales Calls Worldwide Columbia Event Client Sales Calls All- Wisconsin Spa Event Sales Calls Event Chicago Client Department Sales Calls Seattle Dallas Sales Sales Local Travel Events Event Mid- Mission Mission Trade & Atlantic & Client & Client Meetings Mid- Sales Calls Event Event Tradeshow Atlantic Sales Rocky Seattle & Mission Mountain Portland Sales Calls Sales Mission San Francisco Client Event

Tourism Program of Work 2019-2020 This plan is subject to change. Experience Scottsdale maintains the right to cancel or reschedule programs at any time.

JULY 2019

Denver/Salt Lake City Sales Mission – July 15-19, 2019 Experience Scottsdale will travel to Denver and Salt Lake City for a sales mission and also host clients at a Colorado Rockies game. This sales event will give participating members the chance to present their company information to travel agents in this important feeder market. . Participation Cost: $850 (plus travel expenses) – space is limited . Location: Denver, Colo. & Salt Lake City, Utah . Contact: Nicole Krekeler at [email protected] or 480-949-2161

Arizona Governor’s Conference on Tourism – July 22-24, 2019 This conference provides a forum for professionals from destination marketing organizations, tour operators, attractions, airlines, accommodations and other hospitality related organizations to come together to discuss marketing strategies, partnership opportunities and critical issues facing the Arizona tourism industry. . Participation Cost: $325 (To register, visit www.aztourismconference.com) . Location: JW Marriott Tucson Starr Pass . Contact: Emily Wininger at [email protected] or 480-889-2705

GTM Flagship – July 26-28, 2019 Global Travel Flagship Marketplace (GMT Flagship) is an elite appointment-only event that connects the most influential travel advisors in North America with global travel suppliers in face-to-face meetings as well as boardroom sessions. . Participation Costs: $6000 (plus travel expenses) (to register: www.gtmflagship.com) . Location: Ft. Lauderdale, FL . Contact: Nicole Krekeler at [email protected] or 480-949-2161

AUGUST 2019

San Francisco/Sacramento Travel Agent Sales Mission & Client Event – Aug. 11-14, 2019 Experience Scottsdale will travel to San Francisco and Sacramento conduct sales calls and host clients at the AT&T Ballpark for a San Francisco Giants game. This mission will give participating members the chance to present their company’s information to travel agents in this important feeder market. . Participation Cost: $850 / $150 brochure distribution only . Location: San Francisco & Sacramento, Calif. . Contact: Nicole Krekeler at [email protected] or 480-949-2161

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SEPTEMBER 2019

Eastern Canada Sales Mission – Sept. 9-13, 2019 Experience Scottsdale will travel to Eastern Canada to conduct sales calls and host a client dinner for top travel agents in Toronto and Montreal. This mission will give participating members the chance to present their company’s information to travel agents in this important feeder market. . Participation Cost: $850 (plus travel expenses)/ $200 brochure distribution only – space is limited . Location: Toronto & Montreal, Canada . Contact: Nicole Krekeler at [email protected] or 480-949-2161

Brand USA Travel Week – Sept. 9-13, 2019 This year Brand USA will host their inaugural tourism trade show, Brand USA Travel Week, for the United Kingdom and European markets. The event will consist of B2B meetings and will showcase the very best the United States has to offer in an engaging, unique, and interactive environment. This dedicated U.S. event will be at the forefront of what is next in the travel space, providing partners the opportunity to promote their product to UK, Ireland, and European hosted buyers. . Participation Cost: $4950 (plus travel expenses) or $1,000 for shared appointments with Experience Scottsdale (plus travel expenses) . Location: London, United Kingdom . Contact: Emily Wininger at [email protected] or 480-889-2705

United Kingdom Sales Mission – Sept. 16-20, 2019 Experience Scottsdale will conduct tour operator sales calls and destination product trainings in the UK. Members are invited to join in this sales mission and meet face-to-face with key accounts in the UK. . Participation Cost: $1000 (plus travel expenses) / $200 brochure distribution only . Location: Edinburgh, Scotland; Manchester, England; Chester, England; and London, United Kingdom . Contact: Emily Wininger at [email protected] or 480-889-2705

ILTM North America Trade Show – Sept. 23-26, 2019 ILTM North America is an invitation-only event, where the very best travel agents and advisors from across the USA, Canada and Mexico meet the world’s very best luxury travel experiences via pre- scheduled appointments. . Participation Costs: $9650 (plus travel expenses) (register at www.iltm.com) . Location: Cancun, Mexico . Contact: Nicole Krekeler at [email protected] or 480-949-2161

OCTOBER 2019

NBAA Annual Conference – Oct. 2019 Experience Scottsdale teams up with the Scottsdale Airport to promote the destination for corporate and leisure travel. NBAA is a diverse group of entrepreneurs and organizations located around the United States and makes up the majority of America’s business aviation fleet. Scottsdale will host a 40’x40’ booth with a Barrett Jackson Collector Car as the centerpiece. . Participation Cost: $200 brochure distribution only . Location: Las Vegas, Nev.

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. Contact: Deanne Boynton Grupp at [email protected] or 480-949- 6285

Los Angeles/Las Vegas Receptive Sales Mission – Oct. 2019 The Experience Scottsdale tourism team will conduct sales calls to receptive tour operators in Los Angeles and Las Vegas. These high-volume clients are responsible for sending thousands of visitors to Scottsdale from all international markets. . Participation Cost: Brochure Distribution Only $100 . Location: Los Angeles, California and Las Vegas, Nevada . Contact: Emily Wininger at [email protected] or 480-889-2705

Vancouver/Seattle Sales Mission – Oct. 7-11, 2019 Experience Scottsdale will travel to Vancouver and Seattle to conduct sales calls and host an upscale client event for top travel agents in both cities. This mission will give participating members the chance to present their company’s information to travel agents in these important feeder markets. . Participation Cost: $850 (plus travel expenses) / $200 brochure distribution only – space is limited . Location: Vancouver, BC, Canada & Seattle, Wash. . Contact: Nicole Krekeler at [email protected] or 480-949-216

NOVEMBER 2019

World Travel Market (WTM) – Nov. 4-6, 2019 WTM is a dedicated business-to-business forum with more than 40,000 industry professionals from 150 countries in attendance. Pre-scheduled appointments with UK tour operators are arranged. This year, the booth costs will be split by all participating DMOs and members. . Participation Cost: $2900 (register online www.london.wtm.com) / $200 brochure distribution only . Location: London, England . Contact: Emily Wininger at [email protected] or 480-889-2705

Chicago Travel Agent Sales Mission – Nov. 4-8, 2019 Experience Scottsdale will travel to Chicago to conduct sales calls and host a dinner for top travel agents in Chicago. This mission will give participating members the chance to present their company information to travel agents in this important feeder market. . Participation Cost: $850 (plus travel expenses) / $150 brochure distribution only . Location: Chicago, Ill. . Contact: Nicole Krekeler at [email protected] or 480-949-2161

DECEMBER 2019

New York Travel Agent Sales Mission – Dec. 9-13, 2019 Experience Scottsdale will travel to New York to conduct sales calls and host a unique client event for travel agents. This mission will give participating members the chance to present their company’s information to travel agents in this important feeder market. . Participation Cost: $850 (plus travel expenses) / $150 brochure distribution only . Location: New York, New York . Contact: Nicole Krekeler at [email protected] or 480-949-2161

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M&I Transatlantic Forum – Dec. 16-19, 2019 M&I Forums will host their transatlantic forum in North America with Europe’s most influential meeting and incentive buyers in attendance. The four-day forum will include 40 pre-arranged appointments as well as networking events each day for the duration of the program. . Participation Cost: $200 brochure distribution only . Location: Las Vegas, Nev. . Contact: Deanne Boynton Grupp at [email protected] or 480-949- 6285

JANUARY 2020

NY Receptive Tour Operator Sales Calls – Jan. 2020 Experience Scottsdale will conduct sales calls to receptive tour operators in New York City who are responsible for sending international meeting and incentive programs to Scottsdale from countries such as the United Kingdom, Germany, Austria, Switzerland, France, Netherlands, Italy as well as the Scandinavian countries and South America. . Location: New York, New York . Contact: Deanne Boynton Grupp at [email protected] or 480-949- 6285

FEBRUARY 2020

CCRA National Conference – Feb. 7-9, 2020 CCRA works to bring independent travel agents and suppliers together with sponsored regional events around the US & Mexico. Experience Scottsdale will participate in the CCRA travel agency event; this event includes trainings, seminars and a tradeshow component. . Participation Cost: $3,950 (plus travel expenses) (To Register: https://www.ccra.com) . Location: National Harbor, MD . Contact: Nicole Krekeler at [email protected] or 480-949-2161

Texas Sales Mission – February 10-14, 2020 Experience Scottsdale will travel to Dallas, Austin and Houston for a sales mission. This effort will give participating members the chance to present their company information to travel agents in this important feeder market. . Participation Cost: $850 (plus travel expenses) – $150 brochure distribution only . Location: Dallas, Austin & Houston, Texas . Contact: Nicole Krekeler at [email protected] or 480-949-2161

MARCH 2020

ITB Trade Show – March 4-6, 2020 International Tourismus Borse (ITB) is an annual trade show that involves more than 50,000 tourism professionals from around the world, including travel agents, tour operators and media. Pre-scheduled appointments are arranged through Arizona’s German representative. This year, the booth costs will be split by all participating DMOs and members. . Participation Cost: $4000 (plus travel expenses) – space is limited . Location: Berlin, Germany . Contact: Emily Wininger at [email protected] or 480-889-2705

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Go West Summit – March 24-27, 2020 Go West Summit provides a unique business setting structured specifically to give Western U.S. suppliers the chance to promote their product to tour operators from around the world and receptive operators from the United States. This show consists of two-days of one-on-one appointments, tourism industry seminars and evening events. . Participation Cost: $2495 (register online www.GoWestSummit.com) . Location: Portland, Oregon . Contact: Emily Wininger at [email protected] or 480-889-2705

APRIL 2020

German Sales Mission – Apr. 2020 Experience Scottsdale will conduct tour operator sales calls and destination product trainings in Germany and Austria. Members are invited to join the CVB on this sales mission and meet face-to-face with key accounts in Germany and Austria. . Participation Cost: $1000 (plus travel expenses) / $200 brochure distribution only . Location: Munich, Frankfurt and Cologne, Germany . Contact: Emily Wininger at [email protected] or 480-889-2705

AOT Mexico Sales Mission – Apr. 2019 Experience Scottsdale will join the Arizona Office of Tourism and statewide DMOs for a sales mission to Mexico City and Guadalajara, Mexico. This sales mission will consist of tour operator sales calls, a client event, and destination product trainings for travel agents and tour operators. . Participation Cost: $1,500 (plus travel expenses) / $200 brochure distribution only – space is limited . Location: Mexico City and Guadalajara, Mexico . Contact: Nicole Krekeler at [email protected] or 480-949-2161

Southern California Sales Mission – Apr. 20-24, 2020 Experience Scottsdale will travel to Los Angeles to conduct sales calls and host a high-end client event for 30-35 top travel agents. This mission will give participating members the chance to present their company’s information to travel agents in this important market. . Participation Cost: $850 (plus travel expenses) / $150 brochure distribution only . Location: Los Angeles, Calif. . Contact: Nicole Krekeler at [email protected] or 480-949-2161

MAY 2020

Scottsdale Local Travel Professional Event – May 2020 Experience Scottsdale will hold a local client tradeshow at a location to be determined. This trade show/agent training day is a great way to educate and refresh local Arizona agents on our Scottsdale hotel and attractions product. . Participation Costs: $75 local event (includes table for trade show) / $50 brochure distribution only . Location: Scottsdale, Ariz. . Contact: Nicole Krekeler at [email protected] or 480-949-2161

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GTM West – May 2020 GTM West is an elite appointment-only event that connects the most influential travel advisors in North America with global travel suppliers in face-to-face meetings and boardroom sessions. . Participation Costs: $5,300 (plus travel expenses) (To Register: www.gtmwest.com/) . Location: Las Vegas, Nev. . Contact: Nicole Krekeler at [email protected] or 480-949-2161

JUNE 2020

U.S. Travel Association IPW Trade Show – May 31 - June 3, 2020 IPW is the largest and most important international trade show held in the United States. Experience Scottsdale will have pre-scheduled appointments with top international and domestic tour operators from Asia, Australia, Canada, France, Italy, Germany, Latin America, Mexico and United Kingdom. Experience Scottsdale will have a booth and invite members to participate. . Participation Cost: $3000 (plus travel expenses) – space is limited . Location: Las Vegas, Nev. . Contact: Emily Wininger at [email protected] or 480-889-2705

IAGTO North America Convention – June 2020 International Association of Golf Tour Operators (IAGTO), North America Golf Tourism Convention is comprised of over 2,000 accredited gold tour operators, golf resorts, hotels, golf courses, receptive operators, airlines, tourist boards, approved media and business partners for over 94 countries. This show consists of one-on-one appointments, business sessions and evening events. . Participation Cost: $2,700 (register online www.iagto.com) / $50 brochure distribution only . Location: TBD . Contact: Nicole Krekeler at [email protected] or 480-949-2161

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2019-20 Performance Standards

Experience Scottsdale’s mission is to enhance the local community by promoting the Scottsdale area as a luxury destination for meetings, events and leisure travel. While Experience Scottsdale is a membership-based organization, our marketing and promotional efforts aim to provide our visitors with the most relevant destination-wide content to inspire them to consider Scottsdale.

Each year, Experience Scottsdale prepares a list of performance standards, which is our contractual guarantee to the City of Scottsdale. The performance standards are determined for the subsequent year by both Experience Scottsdale and the City’s contract administrator based on multiple factors, including the organization’s overall budget (including revenue changes from all sources), our prior year performance, priority areas where revenue will be deployed in the coming year, economic and business cycles, and the capacity of our staff and resources. We aim to exceed these measures each year by setting higher requirements for individual staff performance to provide the City with the greatest return on investment possible.

All performance standards are based on Experience Scottsdale’s overall outcomes for the Scottsdale market area. The Scottsdale market area means all businesses located in Scottsdale and its surrounding areas that are part of Experience Scottsdale’s membership, including members located in other communities.

2019-20 Experience Scottsdale 2019-20 2018-19 2017-18 Change Budget Budget Budget Budget vs. 18-19 City of Scottsdale Bed-Tax Does not include pass-through Fiesta Bowl funding $11,040,114 6.1% $10,404,240 $9,839,054

2019-20 2018-19 2018-19 Experience Scottsdale 2019-20 Change 2018-19 Actual % of 2017-18 2017-18 Performance Standards Goals vs. 18-19 Goals (8 months: Annual Goals Actual Goals July-Feb) (8 mos.) Convention Sales & Services Generate convention sales leads for Scottsdale market area properties 1,575 5% 1,500 1,313 88% 1,404 1,779 Conduct customer site inspections for Scottsdale market area properties 216 6% 204 171 84% 192 230 Confirm convention bookings into Scottsdale market area properties for future dates 468 5% 444 414 93% 432 589 Confirm convention bookings into Scottsdale market area properties for future dates resulting in room nights 138,408 6% 130,176 142,289 109% 126,756 193,041 Generate services leads and hotel leads for 10 rooms or fewer for Scottsdale market area properties/businesses 312 4% 300 255 85% 288 388 1

2019-20 2018-19 2018-19 Experience Scottsdale 2019-20 Change 2018-19 Actual % of 2017-18 2017-18 Performance Standards Goals vs. 18-19 Goals (8 months: Annual Goals Actual Goals July-Feb) (8 mos.) Tourism Generate domestic and international tour program leads and services for Scottsdale market area properties/businesses 1,500 0% 1,500 1,295 86% 1,500 1,921 Promote the Scottsdale market area as one of the world’s top leisure destinations to targeted clients 3,360 >0% 3,350 2,374 71% 3,300 3,682 Communications Generate media hits about the Scottsdale market area 1,000 0% 1,000 620 62% 1,000 1,078 Marketing Generate brand engagements through visitor guide distribution, collateral downloads, email opens, video views, and social media followers 800,000 7% 750,000 810,951 108% 650,000 824,446 Generate visitor sessions to the Experience Scottsdale 1.8 1.75 2.15 website and all affiliate sites 1.85 million 3% million 1,468,933 82% million million

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2019-20 Performance Standards Glossary of Terms, and Performance Standards & Budget Notes

All performance standards are based on Experience Scottsdale’s overall outcomes for the Scottsdale market area, which means all businesses located in Scottsdale and its surrounding areas that are part of Experience Scottsdale’s membership, including members located in other communities.

Convention Sales & Services

Glossary of Terms

• Generate convention sales leads for Scottsdale market area properties – Experience Scottsdale customizes all meeting planners’ requests for accommodations and meeting space. These leads are sent to Scottsdale market area properties that best meet the needs of the planner.

• Conduct customer site inspections for Scottsdale market area properties – Customer site inspections include meeting planner familiarization tours planned for several planners as well as individual site inspections whereby planners who are actively considering Scottsdale for future programs can experience the Scottsdale market area and Scottsdale market area properties first hand. Experience Scottsdale recommends properties to planners, but the properties ultimately visited are those approved by the planner.

• Confirm convention bookings into Scottsdale market area properties for future dates – Experience Scottsdale’s convention sales team works with meeting planners and Scottsdale market area properties to secure future meetings. We influence bookings by serving up the best-quality clients and opportunities possible, uncovering new business for the destination, and building relationships with planners to gain their repeat business in the destination.

• Confirm convention bookings into Scottsdale market area properties for future dates resulting in room nights – Based on the number of bookings confirmed for Scottsdale market area properties due to Experience Scottsdale efforts, we track planned room nights at the time a booking is confirmed.

• Generate services leads and hotel leads for 10 rooms or fewer for Scottsdale market area properties/businesses – Experience Scottsdale customizes all meeting planners’ requests for accommodations, meeting space and other types of services. By efficiently matching a planner’s requests for destination management services, off-property venues, speakers, wholesale gifts and other types of services with member businesses, Experience Scottsdale streamlines the planning process and makes the planner’s job easier.

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Performance Standards & Budget Notes

We carefully consider our performance standards each year based on multiple factors, including the organization’s overall budget (including revenue changes from all sources), our prior year performance, priority areas where revenue will be deployed in the coming year, economic and business cycles, and the capacity of our staff and resources. We aim to exceed our contractual guarantee to the City each year by setting higher requirements for individual staff performance to provide the City with the greatest return on investment possible.

In evaluating Convention Sales performance standards, we began by reviewing our current performance standards as well as our actual performance from the year prior. We also considered all the factors listed above, as well as changes in rooms booked associated with major events; the meeting cycles of key clients; and the capacity of our sales staff. According to STR’s President & CEO Amanda Hite, “Demand is softening, and although supply growth is stabilized, we expect our first year without an increase in occupancy since 2009. Combine more pressure on occupancy levels with already subdued pricing confidence, concerns over labor costs, a cooling economic environment, and the negative sentiment brought on by the recent government shutdown, and you have a recipe for diminished RevPAR growth.” Destination Analysts also expects that the domestic leisure market will remain robust; however, a significant downside potential exists with uncertainty on so many fronts. While the current forecast for Scottsdale’s tourism industry for 2019 is for flat occupancy, the community’s ADR and RevPAR are expected to grow year-over-year, albeit it at a much slower pace than in 2018. Nonetheless, international flights into the Phoenix metro area are growing with new and expanded flights to Canada and Europe.

The Convention Sales & Services budget will increase by 18.0% in 2019-20; however, $125,000 is carry- over from the year’s summer meetings rebate program. Without the carryover funds, the Convention Sales budget would be increasing by 4.9%. The team will use the additional funds to continue the summer meetings rebate program and invest in lead generation tools to help generate incremental summer meetings business. In addition, the department will be hosting a destination-wide, appointment-based trade show for meeting planners to help provide exposure to the Scottsdale market area. The funds also will allow the team to expand the successful Site See Fly Free program, which provides a great return on investment and had a 44% conversion rate last year. Finally, the team will be creating a local meeting planner promotion to help encourage local planners to keep their meetings in Scottsdale and use the services of Experience Scottsdale.

The expansion of current lead-generation programs and the implementation of new programs will have the greatest impact on performance standards. Increases from 4% to 6% are being recommended for all sales performance standards.

Tourism

Glossary of Terms

• Generate domestic and international tour program leads and services for Scottsdale market area properties/businesses – Experience Scottsdale customizes all tour program leads and services for accommodations, activities, transportation, destination materials and more. These

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leads are sent to Scottsdale market area properties and businesses that best meet the needs of the program. Tour program leads and services include requests from travel agents, tour operators, airline vacation divisions, receptive operators, wholesale operators, online travel agencies, etc.

• Promote the Scottsdale market area as one of the world’s top leisure destinations to targeted clients – To quantify these promotions, Experience Scottsdale will include all face-to-face meetings with travel professionals at trade shows, sales missions, client events and educational seminars whereby the tourism team works to cultivate relationships with new clients and meet with long-term clients, educate travel professionals on the Scottsdale market area, and generate leads for Experience Scottsdale members.

Performance Standards & Budget Notes

We carefully consider our performance standards each year based on multiple factors, including the organization’s overall budget (including revenue changes from all sources), our prior year performance, priority areas where revenue will be deployed in the coming year, economic and business cycles, and the capacity of our staff and resources. We aim to exceed our contractual guarantee to the City each year by setting higher requirements for individual staff performance to provide the City with the greatest return on investment possible.

In evaluating Tourism performance standards, we began by reviewing our current performance standards as well as our actual performance from the year prior. We also considered all the factors listed above, as well as the capacity of our tourism staff. According to STR’s President & CEO Amanda Hite, “Demand is softening, and although supply growth is stabilized, we expect our first year without an increase in occupancy since 2009. Combine more pressure on occupancy levels with already subdued pricing confidence, concerns over labor costs, a cooling economic environment, and the negative sentiment brought on by the recent government shutdown, and you have a recipe for diminished RevPAR growth.” Destination Analysts also expects that the domestic leisure market will remain robust; however, a significant downside potential exists with uncertainty on so many fronts. While the current forecast for Scottsdale’s tourism industry for 2019 is for flat occupancy, the community’s ADR and RevPAR are expected to grow year-over-year, albeit it at a much slower pace than in 2018. Nonetheless, international flights into the Phoenix metro area are growing with new and expanded flights to Canada and Europe.

The Tourism budget will increase by 1.8% in 2019-20 to expand our international reach through a partnership with Brand USA. By supporting their ad campaigns in top international markets, Scottsdale and Arizona can be top of mind with these important customers. This investment also supports our increased international air service. Using cost savings in other areas, the team also will be hosting a new receptive familiarization tour for wholesalers located in the United States that are responsible for sending international visitors to Scottsdale from countries around the world.

We recommend the leads and services performance standard remain flat; however, we are recommending a slight increase in client outreach due to the addition of the receptive operator familiarization tour that will be hosted in Scottdale.

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Communications

Glossary of Terms

• Generate media hits about the Scottsdale market area – Media hits can be any publication or medium (such as TV, radio, newspaper, magazine, website, blog, social media, etc.) whereby the Scottsdale market area or Scottsdale market area members of Experience Scottsdale are mentioned due to efforts of the Experience Scottsdale communications team (such as pitching, assistance with information or photos, hosting in the destination, etc.).

Performance Standards & Budget Notes

We carefully consider our performance standards each year based on multiple factors, including the organization’s overall budget (including revenue changes from all sources), our prior year performance, priority areas where revenue will be deployed in the coming year, economic and business cycles, and the capacity of our staff and resources. We aim to exceed our contractual guarantee to the City each year by setting higher requirements for individual staff performance to provide the City with the greatest return on investment possible.

In evaluating Communications performance standards, we began by reviewing our current performance standards as well as our actual performance from the year prior. We also considered all the factors listed above, as well as the capacity of our communications staff. Many print publications continue to fold, consolidate or reduce the staff and number of issues they print each year, providing fewer traditional media opportunities. According to STR’s President & CEO Amanda Hite, “Demand is softening, and although supply growth is stabilized, we expect our first year without an increase in occupancy since 2009. Combine more pressure on occupancy levels with already subdued pricing confidence, concerns over labor costs, a cooling economic environment, and the negative sentiment brought on by the recent government shutdown, and you have a recipe for diminished RevPAR growth.” Destination Analysts also expects that the domestic leisure market will remain robust; however, a significant downside potential exists with uncertainty on so many fronts. While the current forecast for Scottsdale’s tourism industry for 2019 is for flat occupancy, the community’s ADR and RevPAR are expected to grow year-over-year, albeit it at a much slower pace than in 2018. Nonetheless, international flights into the Phoenix metro area are growing with new and expanded flights to Canada and Europe.

The Communications budget will increase by 2.6% in 2019-20. The department will be working to produce new b-roll to help tell Scottsdale’s stories in the digital/social spaces. The team is continuing to align their strategy with the ever-changing media landscape, and that means continuing to shift focus to online media and social media. The team also will be working more with valuable influencers to create content for authentic, engaged audiences. Some experiential events for media also are being considered to help keep Scottsdale top-of-mind with key editors, freelance writers and influencers.

We recommend performance standards remain flat. While the initiatives above require additional budget and will help build relationships with media, they will not specifically result in additional editorial coverage in the short term. In addition, Scottsdale will not be hosting the Travel Classics West writers conference as it comes to Scottsdale every other year.

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Marketing

Glossary of Terms

• Generate brand engagements through visitor guide distribution, collateral downloads, email opens, video views, and social media followers – To quantify brand engagements, Experience Scottsdale will include the total number of visitor guides distributed to new and repeat customers; all collateral downloads from our website (such as the visitor guide and other niche guides) to new and repeat customers; all emails opened by leisure visitors, travel professionals and meeting planners; video views; and new social media followers, including to our Facebook, Twitter and Instagram accounts.

• Generate visitor sessions to the Experience Scottsdale website and all affiliate sites – A visitor session counts each time a person comes to ExperienceScottsdale.com or any other affiliate website of Experience Scottsdale.

Performance Standards & Budget Notes

We carefully consider our performance standards each year based on multiple factors, including the organization’s overall budget (including revenue changes from all sources), our prior year performance, priority areas where revenue will be deployed in the coming year, economic and business cycles, and the capacity of our staff and resources. We aim to exceed our contractual guarantee to the City each year by setting higher requirements for individual staff performance to provide the City with the greatest return on investment possible.

In evaluating Marketing performance standards, we began by reviewing our current performance standards as well as our actual performance from the year prior. We also considered all the factors listed above. According to STR’s President & CEO Amanda Hite, “Demand is softening, and although supply growth is stabilized, we expect our first year without an increase in occupancy since 2009. Combine more pressure on occupancy levels with already subdued pricing confidence, concerns over labor costs, a cooling economic environment, and the negative sentiment brought on by the recent government shutdown, and you have a recipe for diminished RevPAR growth.” Destination Analysts also expects that the domestic leisure market will remain robust; however, a significant downside potential exists with uncertainty on so many fronts. While the current forecast for Scottsdale’s tourism industry for 2019 is for flat occupancy, the community’s ADR and RevPAR are expected to grow year-over-year, albeit it at a much slower pace than in 2018. Nonetheless, international flights into the Phoenix metro area are growing with new and expanded flights to Canada and Europe.

The Marketing budget will increase by 2.9% in 2019-20. We will be investing more in video content to help drive web traffic and additional brand awareness. The department also is expanding the leisure summer campaign that was first launched this past year. This year’s efforts will further engage potential visitors and extend promotions to top markets such as New York and Chicago in addition to the Los Angeles, Phoenix and Tucson markets. In addition, the team will be extending our placements in top markets when feasible as we typically only have the budget to run campaigns for one month. These ads will reflect our Absolutely Scottsdale ad campaign refresh as usage rights for the current campaign expire. The new ads will align with our current Effortless Revitalization brand with a greater emphasis on

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sense of place. Finally, the team will prepare for executing ads during times of inclement weather in our key markets to leverage the increased interest of potential visitors to get away.

We are recommending increases in both performance standards to reflect the anticipated efforts of Experience Scottsdale, including our focus on new video content and an increased presence in top visitor markets.

Community & Government Affairs

Budget Notes

The Community & Government Affairs budget is decreasing 15.6% in 2019-20 as we will not be conducting a specific research study that was included in last year’s budget.

Membership

Budget Notes

The Membership budget is remaining flat in 2019-20.

Personnel

Budget Notes

The budget for personnel is increasing 2.8% in 2019-20. Personnel costs include salaries, benefits and payroll taxes. The 2019-20 proposed salaries compared to 2018-19 budgeted salaries reflects a change of 2.6%. The increase in personnel is due to increased costs associated with employee benefits, and a 3% merit pool based on employee performance. Any anticipated costs in personnel that come in less will be reallocated to marketing programs.

Operations/Administration

Budget Notes

The budget for operations/administration is increasing 5.8% in 2019-20. We will have an annual increase in rent per our lease at the Galleria Corporate Centre as well as increased costs associated with new servers. Any anticipated costs in operations/administration that come in less will be reallocated to marketing programs.

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WORKING DRAFT Experience Scottsdale Budget % Difference Based 2018-2019 Upon Approved Reforecast Proposed Original 2018-2019 Budget 1st 2019-2020 Budget Budget Qtr Budget Amount REVENUE Contracts City of Scottsdale - Contract 10,206,608 10,206,608 10,765,114 5.5% City of Scottsdale - Fiesta Bowl 168,109 168,109 174,833 4.0% True-Up Payment * 243,015 197,632 275,000 13.2% Total City of Scottsdale Revenue 10,617,732 10,572,349 11,214,947 5.6%

Carryover 441,375 441,375 125,000 * -71.7% Town of Paradise Valley 1,514,011 1,514,011 1,797,056 18.7% Fort McDowell Yavapai Nation - Salt River Pima 100,000 100,000 -100.0% State of Arizona - Prop 302 2,021,896 2,088,123 2,088,123 3.3% Total Contracts 14,695,014 14,715,858 15,225,126 3.6% Carryover- Private Sector 60,000

Total Private Sector Revenue 965,000 965,000 952,000 -1.3% TOTAL ALL REVENUE 15,660,014 15,680,858 16,237,126 3.7%

EXPENSE Personnel: Salaries 4,253,440 4,253,440 4,363,170 2.6% Taxes 287,000 287,000 292,500 1.9% Benefits 702,000 682,000 731,000 4.1% TOTAL Personnel 5,242,440 5,222,440 5,386,670 2.8%

Operating/Administration Expense 1,101,419 1,101,419 1,165,000 5.8% Membership Development 5,000 5,000 5,000 0.0% Marketing 6,811,937 6,852,781 7,010,790 2.9% City of Scottsdale Pass Through - Fiesta Bowl 168,109 168,109 174,833 4.0% Experience Scottsdale - Fiesta Bowl 168,109 168,109 174,833 4.0% Communications 575,000 575,000 590,000 2.6% Community & Government Affairs 237,000 237,000 200,000 -15.6% Convention Sales 953,000 828,000 * 1,125,000 * 18.0% Tourism Sales 398,000 398,000 405,000 1.8% Private Sector Reserve -

TOTAL ALL EXPENSE 15,660,014 15,555,858 16,237,126 3.7% Net Cash (Carryover) - 125,000 * -

*Convention sales is carrying over $125,000 from its 2018-19 summer meetings program into 2019-20. Although the 2019- 20 budget for convention sales reflects a significant percentage increase, it is largely the result of the $125,000 carryover.

4/8/2019 2:49 PM 1 2019-20 Budget Updated 04-08-19