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Visit Baltimore Annual Report & Business Plan

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Visit Baltimore Annual Report & Business Plan Visit Baltimore Annual Report & Business Plan FY2019-2020 1 Contents 02 MESSAGE FROM THE PRESIDENT & CEO AND BOARD CHAIR 03 OUR STRATEGIC VISION AND CORE VALUES 04 TOURISM BY THE NUMBERS Our Mission 06 CONVENTION SALES & SERVICES Visit Baltimore, a nonprofit membership organization, is the official sales and marketing MARKETING & COMMUNICATIONS organization for the city. We generate economic 14 benefits for the region through the attraction of convention, group and leisure visitors. We also work PUBLIC AFFAIRS to provide positive experiences for all guests. 24 Learn more about who we are, what we do and why it matters in the pages that follow. 30 MEMBERSHIP 32 OPERATIONS 37 APPENDICES 38 VISIT BALTIMORE LEADERSHIP & STAFF 2 1 A Message from the President & CEO and Board Chair An Inclusive Vision and Plan The past year has brought about transformative change community, we made big strides toward forming this BTID. at Visit Baltimore. In April, we moved to our new home at 400 The final steps in the process will take place next month, and East Pratt Street. It wasn’t just the gorgeous harbor views we hope to begin collecting funds before the end of 2019, for Visit Baltimore’s vision includes an action plan that steers the organization that sold us; the new space allowed us to design an office that use in 2020 and beyond. toward the future over the next several years. reflects the core values our staff created and embraced earlier this year. We believe that our space should make it easy for While we enhance and broaden our own capacities, our The following five pillars provide a barometer against which all decisions must all teams to participate in a values-focused work culture— eyes are also on the expansion of the Baltimore Convention be measured. They are: one that places an emphasis on practicing mindfulness, Center. The Visit Baltimore sales team continues to empowering collaboration, exemplifying adaptability and aggressively pursue and secure business that fits within 1. Business Model celebrating diversity. the current convention center space. However, we must a sustainable business model marked by increased efficiencies and revenues look towards the future of the building to ensure it 2. Marketing & Sales While we’re living those values, we’re working harder than remains functional and competitive. Over the past year, a marketing and sales platform delivering value for multiple stakeholders ever to drive visitation, book meetings, tell compelling we’ve worked closely with the Maryland Stadium Authority, stories and reinforce the power and impact of tourism convention center, city officials and other important 3. Community Engagement throughout our communities, in City Hall and around stakeholders to develop an expansion plan. There’s more a catalyst for community engagement the nation. The marketing and communications team is work to do before the plan moves forward, but we remain 4. Culture working in earnest on a robust rebranding effort that will optimistic that a convention center expansion is on the a workplace culture of inclusion, opportunity and respect be launched in spring 2020. Stay tuned for the big reveal! horizon for Charm City. 5. Advocacy In the meantime, the establishment of a Tourism In the pages that follow, you’ll learn more about what we were an advocate for tourism and the visitor experience Improvement District in Baltimore will help us expand up to in FY19 and how tourism remains impactful in many our destination sales and marketing capacity, to include ways. Thank you for your support of our organization new national and international marketing initiatives. With and for everything you do to help push Baltimore to new and the vision and tremendous support of Baltimore’s hotel greater heights! A Values-Driven Organization After completing the strategic visioning process and establishing these pillars, the team focused on identifying organizational core values. The entire Visit Baltimore staff participated in a day-long workshop to agree upon the following: AL HUTCHINSON JOHN FRISCH President & CEO Chairman, Baltimore Convention Grounded in respect, we: & Tourism Board of Directors • Practice mindfulness • Exemplify adaptability • Empower collaboration • Celebrate diversity 2 3 Tourism by the Numbers Main Purpose of Trip: 52% Visiting friends or 17% Business relatives 4% Business – leisure 27% Marketable – trips Baltimore welcomed Visitor spending reached influenced by marketing 26.7 million $5.9 billion efforts visitors A 2% A 14.6% A 2.5% A 15.8% increase increase increase increase from 2017 from 2012 from 2017 from 2012 (source: Longwoods) 16 million 10.7 million 2.4 nights day visitors overnight average length generating $10.7 billion in total business sales and visitors of stay $734 million in State and City tax revenue or nearly the entire leisure spending makes up cost of the Ft. McHenry 76% of all visitor spending $306 million in city $428 million in state tunnel ($750m) when it revenue generated revenue generated was built overnight visitor spending spending on lodging, food & beverage makes up 70.7% of all accounts for 51% of all visitor spending Tourism sustained 86,414 jobs both directly and indirectly visitor spending 1 in 16.4 6.1% or enough to hire every jobs in the of private non- resident of Towson Baltimore region farm employment Without the state and local taxes generated by tourism, each Baltimore household (source: Tourism Economics) would pay an additional $697 to maintain current level of government services 4 [All statistics in this spread refer to calendar year 2018-2019] 5 Convention Sales Services The Sales & Services team drives business and economic &impact to Baltimore and the region by booking and servicing conventions, meetings and events. GOALS: • Focus on key regional markets and vertical industries by creating short-term business opportunities. • Develop relationships with accounts in emerging & non-traditional vertical markets. • Regain long-term sales momentum through an emphasis on the “Value Creation” sales strategy of Meet Local. • Continue to pursue the international and domestic tour market to encourage inclusion in East Coast itineraries. STRATEGIES: • Attend market-specific industry tradeshows and events. • Leverage deployment, industry partnerships and database mining. • Develop customized bid proposals against key industries. • Form strategic alliances with Hills Balfour, CRUSA, Brand USA, USTA, and Maryland Office of Tourism & Development. 6 JASON VARNEY 7 SPOTLIGHT ON: FY2019 Booking Productivity THE CONVENTION SALES DEVELOPMENT PROJECT 346 During FY19, Visit Baltimore partnered total events with a third party to create a more tactical booking strategy, called the “Convention Sales Development Project.” 348,955 We worked in partnership with the local hotel room hotel community to analyze historical nights performance and clearly define what success looks like. Dustin Arnheim, Visit Baltimore’s new VP of Convention Sales 590,000 and Services will be leading this initiative estimated moving forward. As a next step in this attendees 53 convention center Total convention process, the Visit Baltimore sales team events booked center bookings will rate all future business based on the represent 191,762 factors we heard to be most important $315 million 32 are short-term bookings, room nights, 289,084 to local hotels: pattern, rate, pickup and arriving between CY2018 – CY2020 attendees and $214.5 in economic time of year. With these ratings in hand, million in estimated BIG impact we can and will be more strategic with our Remaining 21 BCC events will arrive economic impact. WIN CY2021 and beyond. Baltimore sales outreach and incentives and drive the Source: Visit Baltimore most impact for you. It also allows us to Tourism maximize any holes in our calendar. Improvement Hotel Performance District In May 2019, Mayor Bernard C. “Jack” Young signed the BALTIMORE NATIONAL AVERAGE Baltimore Tourism Improvement District (BTID) ordinance into law as part of an event at City Hall celebrating the CALENDAR YEAR CY15 CY16 CY17 CY15 CY16 CY17 economic impact of tourism and the start of National Occupancy 67.1% 67.8% 67.1% 65.4% 65.4% 65.9% Travel & Tourism Week. The signing marked another Average Daily Rate (ADR) $113.08 $115.73 $116.00 $119.88 $124.13 $126.72 significant step forward for Visit Baltimore and the City’s Revenue per Available Room (RevPar) $76.63 $78.44 $77.87 $78.56 $81.15 $83.57 hotel community in its collaborative efforts to increase supplemental funding for destination sales and marketing initiatives. Forming a BTID allows Baltimore to be more FISCAL YEAR FY17 FY18 FY19 FY17 FY18 FY19 effective in selling and promoting our destination and will Occupancy 66.5 63.6 63.7 65.4 65.9 65.9 help Visit Baltimore receive funding up to $7M per fiscal Average Daily Rate (ADR) 146.57 142.25 140.55 126.01 129.72 131.20 year. Visit Baltimore hopes to begin collecting funds before Revenue per Available Room (RevPar) 97.48 90.53 89.50 82.35 85.45 86.51 the end of 2019. 8 9 CIAA Tournament Need Period & Short Term Wins Visit Baltimore aggressively pitched and won the bid to host the 2021-23 Central Intercollegiate Athletic BIG Association (CIAA®) Men’s and Women’s Basketball WIN Tournament. The CIAA is the nation’s first African American athletic conference and the annual basketball tournament is one of the most highly attended basketball tournaments among all NCAA divisions. Each year, the tournament has the potential to drive $50 million in total economic impact locally, and bring 150,000 people to the city for games, shows, forums and more. The CIAA Men’s and Women’s basketball tournament is an impactful event at any time of the year, but especially during what is traditionally a slower period for the tourism industry. This is a tremendous opportunity for our community to roll out the red carpet and make meaningful social and business connections over the last week in February.
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