North Carolina DIVISIONOFTOURISM, FILMANDSPORTSDEVELOPMENT

’07 Annual Report BOARD MEMBERS North Carolina Travel and Tourism Board

Thomas B. Ruff Walter Dalton Kelly Miller Chairman Senator, District 46 Asheville Asheville Rutherfordton Appointed by: NCACVB Appointed by: NCRLA Appointed by: Senate President Pro Tempore Ed Phillips Jim Fain Morganton Secretary, Department of Commerce Teresa Damiano Appointed by: NCTIA Raleigh RDU Airport Susan Galyon Spangler Ex Officio Appointed by: Senate President Pro Tempore Greensboro Lynn Minges Appointed by: Governor Executive Director, Division of Tourism, Joyce Dugan A.B. Swindell Film and Sports Development Cherokee Senator, District 11 Raleigh Appointed by: Governor Nashville Ex Officio S. Lewis Ebert Appointed by: Donna Bailey-Taylor Raleigh Senate President Pro Tempore Smithfield Appointed by: NCCBI Scott Thomas Appointed by: NCACVB Mohammad Jenatian Senator, District 2 Douglas Brindley Charlotte Raleigh Corolla Appointed by: House Speaker Appointed by: Appointed by: Senate President Pro Tempore Carol Lohr Senate President ProTempore Morehead City Cathy Wallace Mike Butts Appointed by: Raleigh Charlotte Senate President Pro Tempore Appointed by: NCTIA Appointed by: NCACVB J. Craig Madison Thomas Wright Chris Cavanaugh Asheville Representative, District 18 Asheville Appointed by: NC Travel &Tourism Wilmington Appointed by: Governor Coalition and NCRLA Appointed by: House Speaker Haddon Clark Mary Baggett Martin Raleigh Wrightsville Beach Appointed by: NC Petroleum Marketers Appointed by: NCRLA Cindy Curry John McLellan Charlotte Lumberton Appointed by: House Speaker Appointed by: NCRLA

North Carolina Film Council

Bob Seligson Mark de Castrique Donna E. Mack, D.D.S. Herman A. Stone Chair Charlotte Raleigh Charlotte Raleigh Craig Fincannon Daniel F. McComas Travis Tatham E.A. Tod Thorne Wilmington Representative Asheville Vice Chair District 19 Charlotte Joseph A. Gomez Wilmington Kelly R. Tenney Raleigh Castle Hayne T.E. Austin II Michael K. McGaha Durham Monty Hagler Greensboro Beth Troutman High Point Concord Timothy M. Bourne Steve Metcalf Wilmington Cress Horne Asheville Margaret C. Ward Marshville Burlington Nancy Buirski Thom Mount Durham Brenda Parks Hughes Durham/Beverly Hills, Calif. Arthur Watkins Wrightsville Beach Raleigh Frank Capra Jr. Dale Pollock Betsy L. Jordan Wilmington Winston-Salem Wilmington

North Carolina Wine & Grape Council

Edward T.Cook Mark Friszolowski R. Willard Hinnant Charles M. Shelton Matthews Lexington Goldsboro Dobson Sandon Dennis Bill Hatcher Frank W.Hobson Dan Smith Albemarle Raleigh Boonville Wagram Jerry Douglas Michael Helton Joe Neely Asheville Yadkinville Mocksville North Carolina’s travel industry made great strides in 2007

North Carolina’s travel industry enjoyed record 8.3% growth in TheDivisioncontinuedtopartnerwiththemotorsportsindustryto 2006, the largest single-year increase since tracking began in promote popular May and October events that help make North 1990, and the momentum continued in 2007. Growth in travel Carolina the “Heart of Motorsports™.” expenditures was strong again, with domestic and international Statewide marketing efforts received a boost in 2007 with the visitorstoandwithinNorthCarolinaspendingarecord$17.1billion legislature allocating an additional $1 million in marketing dollars in 2007. Domestic traveler expenditures reached $16.5 billion, to the Division’s annual budget. up 7.2% from 2006, while total direct international travelers’ Our television presence and partnership with UNC-TV remained expenditures increased to $607 million, a 13.2% jump from the an effective way for the Division to extend its message as North previousyear.Ninety-fourofthestate’s100countiessawincreases Carolina Weekend continued to be one of UNC-TV’s top-rated in spending, including six counties with double-digit increases. shows, encouraging North Carolinians to discover the rich Visitor expenditures directly generated 198,900 jobs and nearly treasures within their own state. And our relationships with the $4.2 billion in payroll income within North Carolina in 2007. North Carolina Press Foundation and the North Carolina Employment increased 2.2% and payroll jumped Association of Broadcasters continue to get the 4.3%from2006.Visitorspendinginthestatealso word out to state residents planning vacations. directlygeneratedcloseto$2.7billionintaxrevenue Despitethesocial,economicandglobalchallengesthe for federal, state and local governments in 2007, tourismindustrycontinuestoface,andtheincredible up 4.6% from 2006. competitionformarketshareasotherstatesoutspend TheDivisionpartneredwithnumerousorganizations North Carolina, we continue to grow. and events statewide throughout the year to help In 2007, North Carolina attracted more tourists sustain the industry’s growth. Among many high- from overseas than in any previous year. The state lightswastheopportunitytosupportPineNeedles drewnearly358,000overseasvisitorstorank15th LodgeandGolfClubandPinehurstChampionship Management as they hosted the 2007 U.S. in the nation, according to a report released by the Women’sOpenGolfChampionship.Theprestigious International Trade Administration and Office of event attracted more than 100,000 visitors, TravelandTourismIndustriesintheU.S.Department generated $52 million in economic impact and of Commerce. brought worldwide exposure to the Sandhills and Oureffortswouldnothavebeensuccessfulwithout North Carolina. the continued partnership and support of tourism, Dr. Stephen Leatherman designated Ocracoke film, wine and sports leaders across the state who Island’sLifeguarded Beach as “America’sBest Beach,” setting off chargedaheadwiththemessagetoourvisitorstoexploreallthat record interest in North Carolina’s coast just in time for the busy North Carolina has to offer. summer travel season. We look forward to continuing to work with our partners to Film incentives took hold in 2007 as North Carolina landed big maintain and strengthen the brand that is North Carolina and its feature films such as Leatherheads and Nights in Rodanthe. One position as one of America’s premier travel, film, wine and sports Tree Hill aired its fifth season on the WB Network. destinations. The state’s official website, VisitNC.com, remained a vital portal for visitors looking for North Carolina travel information. The site Jim Fain had unprecedented growth with more than 6.8 million visits, a 41% increase over 2006. New web-based promotions, including Spring Color, Cool It in Secretary of Commerce NC!, Fall Color/Fall Fishing and Holiday Memories, as well as improved integration with the state’s official Travel Guide, strengthenedthevalueofVisitNC.comwhileencouragingvisitors to discover all that North Carolina has to offer. Lynn D. Minges In addition to the efforts with VisitNC.com, the Division’s wine tourism marketing program and partnership with the North Carolina Wine & Grape Council took top honors, earning the Executive Director National Council of State Tourism Directors’ Mercury Award for Best Niche Marketing among the 50 states.

1 Top Activities Visiting Relatives/Family Reunion 36.1% ’07Results Shopping 19.2% Visiting Friends 19.2% Impact of Tourism on North Carolina Rural Sightseeing 14.0% Fine Dining 13.0% • Tourism is one of North Carolina’s largest industries. In 2007, Beach 13.0% domestic and international visitors spent a record $17.1 billion. State/National Park 8.7% • Expenditures from domestic travelers reached $16.5 billion, up 7.2%from2006,whileexpendituresfrominternationaltravelers Urban Sightseeing 6.9% increased to $607million, a 13.2% jump from the previous year. Historic Sites/Churches 6.5% • Of the state’s 100 counties, 94 saw increases in spending, Wildlife Viewing 5.0% including six counties with double-digit increases. Museums 5.0% • Expendituresfromvisitorsdirectlysupported198,900jobsfor Fishing (fresh or saltwater) 4.7% North Carolinians and nearly $4.2 billion in payroll income. Nightclub/Dancing 4.7% • Visitor spending generated $2.7 billion in tax revenue. Special Events/Festivals 3.9% – $1.36 billion in federal taxes Old Homes/Mansions 3.9% – $1.34 billion in state and local taxes Hiking/Backpacking 3.5% - $815 million in state taxes Gardens 3.2% - $529 million in local taxes Nature Travel/Ecotouring 2.7% Source: Travel Industry Association of America Art Galleries 2.5% 2007 Travel Volume Wine Tasting/Winery Tour 2.5% North Carolina person-trip volume was 39.6 million in 2007, Golf 2.4% while household trip volume was 20.4 million. North Carolina Casino/Gaming 2.4% ranked seventh nationally in trip volume in 2007. Youth/Amateur/Collegiate Sporting Events 2.3% 2007 State Rankings by Volume Camping 2.3% 1. California 6. Ohio Source: TNS TravelsAmerica 2. Florida 7. NORTH CAROLINA 3. Texas 8. Illinois 4. New York 9. Georgia 5. Pennsylvania 10. Michigan

Source: TNS Travels America NC’s Top States of Overnight Visitor Origin NORTH CAROLINA 37.0% South Carolina 8.0% Virginia 7.0% Georgia 7.0% Florida 6.0% New York 5.0% Source: TNS Travels America Average Trip Spending United States Travelers $651 NC Visitors (total) $479 NC Out-of-State Visitors $582 NC Resident Visitors $297

Source: TNS Travels America Average Overnight Trip Duration United States 3.8 nights NC Portion 3.1 nights – Resident Visitors 2.4 nights – Out-of-State Visitors 3.5 nights

Source: TNS Travels America 2 The North Carolina Division Media Purchase & Production $4.0 million of Tourism, Film and Sports Personnel & Administration $2.4 million Development was funded by Welcome Center Operation (9 centers) $1.8 million general appropriations from the legislature in the amount VisitNC.com Development & Maintenance $1.5 million of $13.6 million including International Marketing (Canada, Germany, UK) $1.1 million the Welcome Centers for Inquiry Fulfillment $700,000 FY 2007-2008. Public Relations $588,000 Domestic Sales Promotion $500,000 Industry Relations $300,000 Research $300,000 Printing & Production $200,000 Film Office Marketing $150,000 Matching Grants Program $130,000 TOTAL $13.6 million

NC Wine & Grape Council $800,000 One-time Viticulture Promotion Funds $500,000 TOTAL WINE $1.3 million

Other Budget Appropriations from the General Assembly Blue Ridge Heritage Area $450,000 Film $300,000 Motorsports $100,000

According to the Travel Industry Association of America (TIA), North Carolina, with a budget of $13.6 million, ranked 22nd in projected state tourism office budgets.

Projected State Tourism Office Budgets ’07-’08 1. Hawaii $85.1 14. Nevada $19.3 2. Texas $63.2 15. Virginia $18.5 3. California $57.9 16. New Mexico $17.0 4. Illinois $50.4 17. Alaska $16.5 5. Florida $42.1 18. New York $16.0 6. Pennsylvania $32.0 19. Georgia $16.0 7. Louisiana $29.0 20. Kentucky $16.0 8. South Carolina $28.1 21. Wisconsin $15.2 9. Arizona $25.0 22. NORTH CAROLINA $13.6 10. Colorado $22.7 23. Alabama $12.7 11. Tennessee $21.0 24. Oklahoma $12.5 12. Missouri $21.0 25. Michigan $12.0 13. Utah $19.6 Budget Overview ’07 -’08

3 Domestic Advertising and Sales 2007 U.S. Women’s Open Championship Promotion Budgets The Division of Tourism partnered with Pinehurst Championship Among the 50 states, the average state domestic advertising Managementtohostthe2007U.S.Women’sOpenChampionship. budget was $6.3 million. North Carolina ranked 24th with a In addition to featuring Pine Needles on the 2007 Official State reported advertising budget of $4.5 million. Golf Guide and featuring the event prominently on VisitNC.com and throughout the state’s marketing program, the Division was a corporate sponsor alongside many of North Carolina’s most Top 10 Ad & Sales Budgets (Millions) prominent companies including Blue Cross and Blue Shield, 1. Texas $36.5 Duke Energy, First Citizens Bank, PepsiCo, Progress Energy and 2. California 20.4 RBC Centura. 3. Florida 19.5 Highlights from the Open 4. Missouri 14.6 • Record-breaking corporate sales: over $3 million 5. South Carolina 13.0 • Total attendance: 100,400 (over 20,000 per day) 6. Colorado 11.7 • Economic impact: $52,481,537 7. Arizona 10.6 PotentialTotalStateEconomicImpactEstimate(1.75Xmultiplier)* 8. Hawaii 10.2 (includes direct, indirect and induced impact) 9. Utah 9.7 Sources: (1) Destination Marketing Association International (DMAI) Event Income Study 10. Louisiana 9.5 (2) IMPLAN model* (Impact Analysis for Planning) (3) U.S. Forest Service and Engineers Economics Association Inc. Source: TIA’s 2007-2008 Survey of State and Territory Tourism Office Budgets Advertising Per-Inquiry Lead-Generation Programs Print Co-op Per-inquirylead-generationprogramsfor2007weredesignedto The Division negotiated favorable rates with leading travel, complement and broaden the reach of the overall advertising lifestyle and special-interest publications to provide industry campaign, generate highly qualified leads at a predetermined partners with cost-effective opportunities to broaden the reach negotiated price and provide a cost-effective cooperative of their own advertising efforts. opportunity for the Division’sindustry partners. • 30 partners were showcased in magazine insertions including The programs are negotiated based on leads generated rather GoodHousekeeping,Oprah,SouthernLivingandMidwestLiving. thanaudiencereach.LeadcostsaresharedequallybytheDivision • Co-op efforts promoting North Carolina’s Civil War Trails, and each participating partner, allowing both parties to extend destinations and attractions across the state featured an their investment and generate twice the number of leads they additional 32 partner placements in AAA World, Civil War would realize otherwise. Traveler and Preservation. Television Highlights TheDivision’s30-secondcommercialswerepairedwith30-second partner commercials, resulting in a 60-second North Carolina commercial promoting the overall appeal of North Carolina statewide and the specific benefits of the partner destination. Targeted spot market buys in key markets of origin for North Carolina were coupled with cost-effective exposure on a variety of national cable networks including Animal Planet, Discovery Channel, Fine Living, Hallmark Channel, MSNBC, the Travel Channel and The Weather Channel. Canadian audiences were also reached through both spot and cable outlets. Online Highlights The cost-per-lead Internet campaign was placed on a general interest, non-incentivized network of sites including Monster.com, Allherfitness.com, Boston.com and Tickle.com. Summary • Divisioninvestmentof$225,247.80wasmatched1:1bypartners and resulted in total media value of more than $5 million. • More than 13,392 leads generated. • Per-inquiry partners in 2007 included Asheville, Brunswick Islands and Wrightsville Beach. 4 VisitNC.com

VisitNC.com Highlights Events eNewsletters • 6,831,356 total visits to the site in 2007,a 41% increase • 49.89% average open rate from 2006. • 16.10% click-thru rate • 4,172,472 inquiries generated through VisitNC.com. • 11,408 subscribers in eight months (launched May 1) • Site interaction rate averaged 59.69% for 2007 with an average visit duration of 8:16 minutes. eSpecials Newsletters • Sweepstakes participation reached a new high of 77,741 • 30.30% average open rate entries. • 4.45% click-thru rate VisitNC.com Partner Programs • 12,438 active subscribers at year-end Industry partners who participated in the VisitNC.comadvertising RSS Feeds: Events, News and Press program benefited from front-line exposure to the site’s more • 200 queries per hour average for three channels than 6.8 million visits. (launched August 2007) Paid Event Listings • 20 participating partners International • 63 paid event listings Traffic from international destinations directly to VisitNC.com continues to grow. • 13,397 clicks from details pages to partner sites Virtual Brochures International Traffic • 20 participating partners 2006 2007 % increase • 33,657 downloads United Kingdom 90,703 101,248 10% Banner Ads Canada 76,638 86,441 11% • 28 participating partners Germany 37,918 46,520 18% • 71,609,732 ad views or impressions delivered • 213,948 clicks from banners to partner sites Online Publications and Videos • Online Travel Guide Monthly eNewsletters — 147,918 clicks to launch guide • 18.44% average open rate • Videos on Outdoor Activities page • 4.51% click-thru rate — 12,756 visits to view videos • 90,009 active subscribers at year-end — 50.57 average view time in seconds

Search Engine Marketing An extensive SEM program for VisitNC.com utilizing an average of 124 text ads and 566 keywords garnered: • More than 63 million impressions on search engines • More than 511,000 click-thrus to VisitNC.com

5 viewing and sports. North Carolina’s winning entry focused on marketing activities geared toward the growing wine tourism industry. This was the 19th time North Carolina has won a Public Mercury Award since the recognition program began in 1985. In-State Marketing Initiatives Relations The Division once again partnered with the North Carolina Association of Broadcasters, North Carolina Press Foundation America’s Best Beach and UNC-TV to promote our state to its nine million residents. Just prior to the Memorial Day Weekend holiday, Dr. Stephen Program Highlights: Leatherman informed the Division that on June 8 he would be North Carolina Association of Broadcasters – Member television recognizing Ocracoke Island’s Lifeguarded Beach as “America’s and radio stations across North Carolina aired more than BestBeach”onhis2007listofbestbeaches.Itwasthefirsttime 23,936 radio and television commercials representing a value of abeachoutsideofFloridaorHawaiihadrisentothenumberone $2,293,419worthofnon-paidannouncementspromotingthestate. position in the more than 15 years Dr.Beach has been compiling • 19,960radiocommercialsaired,representingavalueof$1,963,376. the list. The Division moved quickly to take full advantage of this uniqueopportunitybyorganizingasatellitemediatourfeaturing • 3,976televisioncommercialsaired,representingavalueof$330,043. Dr. Beach touting the announcement to media throughout the North Carolina Press Foundation – The Division’srelationship with country. The comprehensive campaign also included a special the North Carolina Press Foundation continued to grow in 2007 landing page, extensive press materials and new online ads andprovidedmorethan$235,000inannualexposuretoresidents. promotingthe“bestbeach”designationandtheappealofNorth • 40 participating newspapers published 277 print and online Carolina’s entire Coastal region. ads, representing a media value of $235,069. Results: UNC-TV – Produced 52 episodes of North Carolina Weekend • Reportsairedin95televisionmarketsacrossthecountryincluding during the past year. Each weekly episode is broadcast nationalbroadcastsonABC’sGoodMorningAmerica,CNN,Fox statewidethreetimeswithapotentialaudienceofover9.6million NewsChannel,MSNBC,TheWeatherChannelandUnivision. citizens of all ages, ethnic backgrounds and income levels in • ThepressroomonVisitNC.comgeneratedarecord5,422media North Carolina and portions of Virginia, South Carolina, visits during the month of June. Tennessee and Georgia. The average rating for North Carolina • Theeventgeneratedrecord-setting interestandperformance for Weekend in the Triangle area is 1.6 or .3 of a ratings point above VisitNC.comlastsummer,withmorethan700,000visitsinJune. the PBS prime-time average rating of 1.3. The series featured 302 destinations, attractions and events across the state. • In total, the coverage of Dr. Beach’s announcement reached an audience of 60 million people with an advertising value of $7.3 million.

2007 Coverage • TheDivisionhosted54writersfromtheU.S.,Canada,Germany andtheUKanddirectlyworkedwith454travelwriters/reporters on stories involving travel to North Carolina. • Division PR efforts led to more than 450 articles on North Carolina,reachinganaudienceof130millionwithanadvertising value of more than $5.5 million. • The articles highlighted attractions, accommodations and activities in 67 of the state’s 100 counties. Other Department Highlights • Media Mission to Europe: Met with more than 50 international journalists. • InternationalMediaEvents:MetwithtraveljournalistsinCanada and the UK. • Travel South Toronto Media Event: Hosted 25 top Canadian travel and food writers. Winning Wine Tourism Program TheNationalCouncilofStateTourismDirectors(NCSTD),anindustry council of the Travel Industry Association (TIA), presented the North Carolina Division of Tourism, Film and Sports Development with a 2007 Mercury Award recognizing excellence in niche marketing—specifically,marketingthestate’swinetourismindustry. The Mercury Award for Niche Marketing recognizes the state that has successfully marketed to a specific type of category of travel such as cultural tourism, agritourism, ecotourism, wildlife 6 Welcome Centers and Visitor Services Welcome Centers • In partnership with DOT, the I-85 North Welcome Center in The nine North Carolina Welcome Centers hosted 8,063,964 WarrenCountywasrenovatedin2007.Itfeaturesanexpanded visitorsin2007.AbreakoutofthenumberofvisitorsbyWelcome receptiondesk,improvedlighting,newflooringandnewdisplay Center location is below: fixtures.

2007 Welcome Center/Rest Area Visitation Counties Travel Counselors Visited on I-95S 1,294,329 Familiarization or Mini-Familiarization Tours I-95N 1,767,315 Alexander,Alleghany,Ashe,Avery,Beaufort,Brunswick,Buncombe, Caldwell, Carteret, Catawba, Craven, Duplin, Durham, Forsyth, I-85S 668,260 Gaston, Granville, Guilford, Halifax, Haywood, Iredell, Jackson, I-85N 692,951 Johnston,Madison,Mecklenburg,Mitchell,Moore,Pitt,Richmond, I-77S 348,359 Rockingham, Rowan, Rutherford, Stokes, Surry, Swain, Vance, I-77N 1,154,012 Wilkes, Wilson, and Yancey. I-40W 1,043,263 I-26W 358,097 Inquiry/Call Center I-26E 737,378 The Call Center sent 295,710 travel packages to potential visitors in 2007 and received a total of 4,342,577 requests for North TOTAL 8,063,964 Carolinatravelinformationbyphone,magazinereaderservicecards, mail and via the website. A breakdown of those requests includes: • TheI-95NorthWelcomeCentercontinuestobethemostvisited, hosting 1,767,315 travelers in 2007. 2007 Inquiry/Call Center Information Requests • WelcomeCentersregistered8,520visitorsfromothercountries, 2007 2006 % change including 5,641 from Canada. Total Inquiries 4,342,577 3,458,168 15.55% • In 2007, Welcome Centers booked 12,118 room nights. This Web Inquiries 4,172,472 3,590,919 16.2% represented total revenue of nearly $1 million with an average Phone 34,552 38,500 -10.25% rate of $81.00 per room night. Packages Mailed 295,710 228,998 23.0% • Each Welcome Center stocked an average of 1,028 different brochures representing all 100 counties. Publications The Official 2008 North Carolina Travel Guide The Travel Guide is the primary fulfillment piece provided to potential travelers to and within the state. • This 192-page publication featured the state’s Mountain, Piedmont and Coast regions with listings for 660 attractions, 349 campgrounds and 3,970 accommodations. • A charming photo of Ocracoke Village was featured on the cover. • Production of the Travel Guide was made possible through the Division’s partnership with Journal Communications and the North Carolina Travel Industry. — 700,000 copies were produced at no cost to the Division or the taxpayers of North Carolina — 74partners placed advertisements in the Travel Guide The 2008 Online Travel Guide The2008OnlineTravelGuidewaslaunchedonVisitNC.cominJanuary,offeringyetanothersourceofvacationplanningideasformore than 6 million web visitors. The online guide offers industry partners an extended opportunity to reach potential travelers as they plan their North Carolina vacations.

7 The Official 2007 • The Division produced 200,000 copies of the 2007 July– North Carolina Golf Guide December edition at a cost of $30,632 or $0.15 per copy. The Golf Guide featured listings for over 430 public and semi- • TheDivisionproduced225,000copies of the 2008January– private golf courses around the state. July edition at a cost of $32,064 or $0.14 per copy. • The cover of the 48-page guide featured NewsLink Pine Needles Lodge and Golf Club in Southern Pines, home of the 2007 U.S. • Emailedweeklytoover1,600subscribers,thiselectronicpublication Women’s Open Golf Championship. provides current information to the tourism industry.The mailing listalsoincludeslegislatorsandthemedia. • Production of the Golf Guide was also made possible through the Division’s • 1,071 stories were covered within the 52 weekly and six “Special partnershipwithJournalCommunications Edition”issues. and the North Carolina Travel Industry. • Timely information is provided on tourism-related research, • 200,000 copies were produced at no cost to the statewide and international trends, media leads, updates on Division or the taxpayers of North Carolina. The conferencesandeventsplusotheritemsofinteresttothoseinthe quantity was increased from the previous year due tourism field. There is no subscription charge for this eNewsletter to the anticipated demand for the U.S. Open golf anditisavailabletoanyonewithavalidemailaddress. tournament. Annual Report • 24 partners advertised in the Golf Guide. • ThispublicationisdesignedtoinformNorthCarolinataxpayers, The North Carolina state legislators, local governments and other tourism-related Calendar of Events entities of the Division’s activities throughout the year and the financial impact of tourism on the North Carolina economy. • Two editions of the Calendar of Events • 1,500 copies of this publication were produced at no cost to were published: the Division or the taxpayers of North Carolina. Production of — 2007 July – December (48 pages) the Annual Report was made possible through the Division’s — 2008 January–July (40 pages) partnership with Loeffler Ketchum Mountjoy. • Thebookletshighlightedover1,800different tourism-related events across the state. Travel Trade Development In 2007,Travel Trade Development initiatives worked to reach group tour planners, travel agents, motorcoach tour operators and planners of meetings and conventions. Some key events were:

Domestic • In the first three quarters of 2007, overnight visitation from Canada was 302,900 (down 5.7% from 2006, but still up • American Bus Association – Partnered with Visit Charlotte to 1% from 2005). hostaNASCAR-themedluncheonshowcasingNorthCarolinato approximately3,000delegatesattheABA’sannualconvention. • Nearly 73% of overnight visitors came from the province of Ontario and 17% came from Quebec. • Travel South Showcase – Partnered with the Virginia Tourism Office to sponsor a luncheon spotlighting the Blue Ridge • Almost80%(79%)ofCanadianvisitorstraveltoNorthCarolina Parkway to approximately 700 tour operators, media and by automobile. Approximately 18.5% fly to North Carolina. tourism representatives. • 72.5% of Canadian visitors come for vacations/leisure. • Blue Ridge Parkway Familiarization Tour – Partnered with • 10.7% of Canadians come to visit friends/relatives. Virginia and Tennessee to host a nine-day tour of the Blue • 13.2% of Canadian travelers come for meetings/business. Ridge Parkway with 30 AAA and CAA representatives from the United States and Canada. Sales/Marketing/Media Highlights • National Tour Association Annual Convention – Partnered • Working with Travel South USA, the Canadian Automobile with Visit Charlotte to share convention booth space, was a Association and American Tours International increased Silver-level sponsor and co-sponsored a wine and cheese North Carolina cities featured from eight to 35. receptionforover1,200delegatesatNTA’sannualconvention. • Cooperative marketing efforts with Merit Golf Vacations, Canada Merit Long Stay Vacations and Ultimate Golf Vacations. • Five delegates from North Carolina participated in the fifth Canada provides North Carolina’s highest number of interna- successful Canadian Sales Mission to the cities of Toronto, tional visitors. Ease of access via highways and direct air service, Ottawa and Montreal with a total of 33 tour operator appoint- high disposable income and the strengthening Canadian dollar ments, three events with an additional 18 operators and two contributed to growth in the market. CAA trainings. 8 • Participated in six consumer shows: Toronto Golf Show, • Hosted a tour operator familiarization tour to the Azalea Montreal Golf Show,Merit Sudbury Gala Event, CAA Niagara Festival resulting in a new garden tour for April 2009 with Show,InternationalTourismandTravelShowandtheGourmet Mary Morton Tours. Food & Wine Show (co-op with Travel South USA). • Hosted four tour operators on a group familiarization tour to • Participatedinthreetradeshows:CAAProductDevelopment the NASCAR Coca-Cola 600 race in Charlotte, which resulted Day,Discover America Day and OMCA Conference (34 tour in a new program for 2008 with McCoy, Great Canadian operator appointments). Holidays and Grand Prix Horizon. • Developed two new programs with Merit: Escorted Long Stay • Expanded product with Ultimate Golf Vacations and Merit Program for February 2008 and Antique Hunter Tour for Golf Vacations to include Charlotte. March 2008. • Cooperative advertising was featured in CAA Magazine, Inside Golf Magazine and website, CARP Magazine and Horizon Magazine. • Distributed 36 tour operator catalogs, an increase of three from last year.

Public Relations • Invited six journalists to participate in the North Carolina familiarization tours following Travel South Showcase, which has generated coverage in 11 publications to date with a circulation of 614,406 valued at $73,719. Some of the subjects featured were: Cape Fear Coast, Seagrove Pottery, Charlotte and NASCAR, and Winston-Salem and Raleigh museums. • Invited two golf journalists to participate in the Media Cup Challenge,whichhasgeneratedover$37,000ofmediavalue to date in three select golf publications. • Organized six individual media familiarization tours over the course of the year to the Outer Banks, Asheville and the Mountains, Charlotte and the Pinehurst area. • Participatedinthe“TasteoftheSouth”promotion,whichincluded a media dinner for 19 journalists, a VIP evening and the three- day Gourmet Food & Wine consumer show. North Carolina hosted Chef Phil Evans from the Umstead Hotel; he showcased North Carolina cuisine both at the media dinner and the Gourmet Food & Wine Show. International Marketing In 2007,North Carolina attracted more tourists from overseas than in any previous year.The state drewnearly 358,000 overseas visitors in 2007 to rank 15th in the nation, according to a report released by the Interna- tional Trade Administration and Office of Travel and Tourism Industries in the U.S. Department of Commerce.

German-speaking Europe Sales and Marketing Results • Above-averagelengthofstay:VisitorsfromGerman-speaking • Teamed with South Carolina to promote the region with three Europe stayed an average of 15 nights in the U.S. and approx- tour operators: Meier’s Weltreisen, DERTOUR and Canusa. imately six nights in North Carolina (1.8 states were visited on • Hosted six product managers on a familiarization tour of average). Western North Carolina. All have added new North Carolina • Leisure and Business Travel: A high proportion of visitors from product to their catalogs. Germany indicated they had visited the Charlotte-Gastonia- • Attracted over 37,000 visits to www.northcarolinatravel.de. RockHillarea(46%)asthemostcommonMetropolitanStatistical • GermanpassengersflyingintoCharlotteDouglasInternational Area (MSA), which demonstrates the importance of Charlotte Airport increased 113% over 2006. as a business and leisure hub as well as the importance of the Lufthansa and US Airways non-stop flights from Munich and • Participated at ITB 2007 in Berlin. Frankfurt to Charlotte Douglas International Airport. • Conducted joint golf event in Krefeld (sister city of Charlotte) • Website visits to VisitNC.com from German-speaking Europe for VIP clients Brand Alliance Marketing Campaign with increased by 28%. Heyne Publishing House for the launch of Nicholas Sparks’ bestseller “Das Leuchten der Stille.” 9 • DevelopedBrandAllianceMarketingCampaignwithSonyfor • Results of the Dirty Dancing consumer campaign, which ran launch of the Open Season DVD. from November 2006 to January 2008: • Launched two brand consumer campaigns and continued as — Dirty Dancing stage show site, banner impressions: the exclusive destination partner with PGA Germany. 555,000 impressions • Developed a two-year contract with PGA Germany as the — Dirty Dancing stage show site, partner page: exclusive destination/pool partner,including: 75,400 impressions — Pool partner/decision-maker familiarization trip to North — SundayTimesStyle&Travelprint/online:3millioncirculation/ Carolina in spring 2008 5 million possible views — Teaching pros familiarization trip to North Carolina — Travel Weekly travel agent print and online campaign: — North Carolina online feature on www.pga.de with link to 66,000 circulation and 5,000 online impressions www.visitnc.de — Film and DVD campaign eblasts: 90,000 distributed — Promotion at annual PGA Conference with 23% interaction — Promotion at PGA Germany tournaments — Film and DVD campaign — Point of sale/activity: 500 salons with 50,000 possible views — Editorial in PGA Germany membership magazine — Data capture: 15,700 contacts Public Relations — PR consumer stunts and events: 1.4 million consumer • GeneratedPRleadswithavalueof$7,761,117andacirculation listeners of 144,898,046. Hosted six individual press trips and two — PR-themed familiarization tours, releases, features: group press trips. The focus was on the U.S. Women’s Open 10 million circulation, ad value $110,000 and the America’s Best Beach designation. — North Carolina, Virgin and Dirty Dancing micro-site: • Conducted media mission with Dr. Stephen Leatherman 26,700 page impressions, 15,000 entrants (“Dr.Beach”) in Hamburg and Munich that yielded eight media appointments. Public Relations • Provided approximately 500 journalists with information • GeneratedPRleadswithavalueof$790,940andacirculation about North Carolina. of 60,967,390. The Division hosted a triple North Carolina booth at TIA’s • Media luncheon with “Dr. Beach” in London for 15 media and International Pow Wow in Anaheim. Three industry partners trade operators. (Asheville,OuterBanksandCharlotte)joinedthestatewithover • Hosted three media familiarization tours in 2007: Adventure 40 trade appointments. familiarization tour to Mountain region; Spa and Par familiar- ization tour to U.S. Women’sOpen and other women’sactivities United Kingdom and Ireland inthePiedmontregion;BestBeachfamiliarizationtoWilmington • 63.6% of these visitors stayed solely for leisure purposes, and Ocracoke Island. including visiting friends and family. • Hosted three individual media familiarization tours in 2007. • While in the United States, United Kingdom visitors took in 2.5 states,stayingsixnightswithin NorthCarolina and14.5nights International Traffic on average in the U.S. InadditiontoVisitNC.com,theDivisionhastwointernationalweb- Sales and Marketing Results sites (NorthCarolinaTravel.co.uk and NorthCarolinaTravel.de) designed specifically to support marketing efforts in the UK and • Teamed with South Carolina to promote the region with our German-speaking markets. maintouroperatorpartnersandatconsumershowsthroughout the UK. International Traffic • Joint campaigns with Lastminute.com, Bon Voyage, North Traffic From Traffic From AmericanTravelService,DialAFlight,TitanTours,TravelSphere, 2007 NorthCarolinaTravel.co.uk NorthCarolinaTravel.de Vacations Group and America As You Like It. January 2,477 visits 3,256 visits • In November, launched a quarterly North Carolina Online February 6,121 visits 3,666 visits Magazine to 36,000 consumers resulting in 800 unique March 2,957 visits 3,684 visits page views as of November 30, 2007. • Over 90,000 visits to www.northcarolinatravel.co.uk and April 2,301 visits 2,654 visits VisitNC.com from the UK – an increase of 128%. May 6,182 visits 3,357 visits • 13,619 Travel Guides were distributed, resulting in a 28% June 4,414 visits 3,853 visits increase from previous year. July 2,698 visits 3,148 visits • Tour operator coverage grew from 53 to 59,a 9% increase. August 2,516 visits 2,987 visits • Opt-in database 46,000, 36% increase over previous year. • TheDivisionattendedWorldTravelMarketinLondon,hosting September 2,732 visits 2,963 visits 33 appointments with tour operators and media. North and October 2,758 visits 3,047 visits South Carolina co-hosted a media luncheon for travel writers November 2,080 visits 2,616 visits and a dinner for tour operators. • Hosted tour operator familiarization tour to Cape Fear Coast December 1,597 visits 2,377 visits and Crystal Coast. TOTAL 38,833 visits 37,608 visits 10 Community Development The Division, through its Community Development and Heritage Tourism programs, continues its efforts to develop tourism across the state, particularly in rural, less advantaged areas.

Tourism Matching Funds Program Grants awarded for 2007 include: For fiscal year 2007-2008 the Division received 59 eligible • Ashe County Christmas Tree Association (Ashe County) – A applications for the tourism matchingfundsprogramfromacross $3,000 grant provided additional marketing support for thestatewith12applicationsfrom Coastal organizations, 16 from theChoose&CutChristmastreeseason.AnAsheCountytree Mountain organizations, 29 from Piedmont organizations and wasselectedtobetheofficialChristmastreeintheWhiteHouse. two applications from organizations covering multiple regions. It is the tenth time a North Carolina tree has been chosen. The requests totaled nearly $297,950. • Caldwell County Chamber of Commerce (Caldwell County) • The Division awarded 29 matching grants totaling nearly – A $6,750 grant provided funds to develop a dedicated, $130,000 to aid organizations in 34 different counties. interactive tourism website. • Regionally,the award distribution broke down as follows: • Central Park NC (Anson, Richmond, Montgomery, Davidson, — Coastalcountiesororganizationsreceivedsevengrants Stanly, Rowan and Randolph counties) – A $3,500 grant totaling $25,600. aided promotional efforts for the Xterra Uwharrie Offroad Triathlon. — Mountain counties or organizations received 12 grants totaling $57,880. • ClevelandCountyTravelandTourism (Cleveland County) – A $6,750grantfundedmediaplacementintargetedprintmedia. — Piedmont counties or organizations received ten grants totaling $46,300. • DowntownWashingtonontheWaterfront (Beaufort County) – A $3,400 grant supported a promotional piece designed to increase visits to the downtown waterfront. • East Coast Drag Boat Association (Washington County) – A $5,000 grant was used to promote the national drag boat racing event held on the Roanoke River. • The Elizabethan Gardens, Inc. (Dare County) – A $3,000 grant was used for paid media placement to attract new visitors to the gardens. • Franklin County Tourism Development Authority (Franklin County) – A $1,800 grant was directed to develop the county’s first tourism website. • Lumbee Regional Development Association (Robeson County) – A $2,500 grant was used for print promotion of the Lumbee Creations craft cooperative. • Mitchell County Chamber of Commerce (Mitchell County) – A $6,750 grant was used to purchase online advertising to promote the chamber’s “Craft Your Adventure” campaign. • Montgomery County Economic Development Corporation (Montgomery County) – A $6,750 grant was directed to mar- keting and promoting the county’s bicycle routes. • NewVenturesBusinessDevelopment,Inc.(AnsonCounty)–A $6,500 grant supported promotional efforts for the regional craft cooperative. • North Carolina High Country Host (Alleghany, Ashe, Avery, Mitchell, Watauga and Wilkes counties) – A $3,000 grant funded a direct-mail campaign for the spring travel season. • Old Wilkes, Inc. (Wilkes County) – A $3,000 grant aided marketing efforts to promote the music heritage of the Blue Ridge Mountains.

11 • PartnershipfortheFutureofBrysonCity/SwainCounty (Swain • Stecoah Valley Arts, Crafts & Educational Center, Inc. County) – A $6,500 grant supported out-of-region media (Graham County) – A $6,500 grant was used to develop a promotion of the local heritage festival. media kit and online marketing for the center. • PolkCountyTravel&Tourism(PolkCounty)–A$3,000grant • TyrrellCountyTourismDevelopmentAuthority(TyrrellCounty) was used for an out-of-region radio promotion campaign, – A $6,500 grant was used to develop a marketing video for “First Peak of the Blue Ridge.” trade shows. • River City Community Development Corp. (Pasquotank • Vance County Tourism Development Authority (Vance County) County) – A $2,200 grant funded out-of-region print adver- – A $6,500 grant funded TV and radio advertising of the tising to promote the Juneteenth Festival. county’s East Coast Drag Times Hall of Fame event. • ElizabethCityAreaConvention&VisitorsBureau(Pasquotank • WashingtonCountyHistoricalSociety(WashingtonCounty)– County) – A $2,800 grant supported development of a A $2,700 grant promoted “Living History Weekend.” DVD for media and promotion kits for travel writers and • Wilkes Playmakers (Wilkes County) – A $3,000 grant was meeting planners. used for out-of-region marketing efforts using print, TV and • Rutherford County (Rutherford County) – A $6,750 grant radio to promote their 2008 season. was used to develop and print a regional Revolutionary War • Yadkin Valley Chamber of Commerce (Surry and Yadkin Trails brochure. counties) – A $3,000 grant was used to target new visitor • Sanford Area Chamber of Commerce (Lee County) – A marketsfortheYadkinValleyWineFestivalthroughprintmedia. $3,000 grant was used to develop and print the county’sfirst • Yancey County Chamber of Commerce (Yancey County) – official visitor guide. A $6,750 grant supported cooperative print advertising • Scotland County Historic Properties Commission (Scotland opportunities. County) – A $6,000 grant aided in media promotion of the annual Storytelling Festival of Carolina. • Spruce Pine Main Street (Mitchell County) – A $2,880 grant was used to promote the Fire on the Mountain heritage festival in downtown Spruce Pine. Heritage Tourism Assisted communities in 76 counties

Fundraising at the Local Level • Tourism development officers (TDOs) wrote or assisted with • Planning is beginning on marketing activities surrounding the over35applicationsforlocalorganizationsthathaveleveraged 150th anniversary of the Civil War (2011-2015). nearly $450,000 in grant funds with other monies pending. • TheNorthCarolinaCivilWarTourismCouncilawardedgrants • Raised over $439,000 through fundraising, in-kind and for the first time this year with nearly $4,000 going to 13 corporate sponsorships. organizations in North Carolina.

North Carolina Civil War Trails Blue Ridge National Heritage Area (BRNHA) For the third year, the Division of Tourism, in partnership with Created by congressional legislation, the BRNHA is supported the North Carolina Department of Transportation and North throughapartnershipwiththeDivision,whoprovidesfiveHeritage Carolina Department of Cultural Resources, utilized funding TourismOfficerstocoordinateplanningforthe25countiesinthe from a $1.1million federal transportation enhancements grant to designated region. develop, design, fabricate and install interpretive markers at • Aftercompletingthefederallymandatedcountydevelopment campaignsitesandcorridorsoftheCivilWar. Thegrantleveraged plans for each county,the Western TDOs continue to assist in a match of $275,000 from the local communities who joined the implementation of the county initiatives outlined in each the program. county’s heritage plan. The BRNHA aims to preserve and • The trail expanded to 168 sites at the end of 2007 with promote the unique character, culture, and natural beauty of more slated for installation across the state in 2008. Great Western North Carolina and its significance to the history of effort on the part of the TDOs in the West encouraged more our nation. participation in that region. • TheBRNHApartneredwiththeNationalParkServicetooperate • The second visitor map debuted in August 2007. 550,000 its new Blue Ridge Parkway Destination Center. copies were printed and nearly 63,000 had been distributed through December 2007. • Visitors downloaded 16,467 Civil War Trails maps from VisitNC.com and www.civilwartrails.com.

12 Community Development • The TDO for the Northeast is assisting in the area’s efforts to • TheTDObasedinMurfreesborodevelopedanEventsPlanning develop a “Hub and Spoke”marketing plan for the region. It is Guidethatisnowavailabletogroupsacrossthestatetoassist underway and has already had a number of successful sales in event planning for their communities. The efforts on behalf blitzes and familiarization tours. of the Historical Association led to increased media exposure • The TDO for the Coastal region played a lead role in organizing in print and broadcast media, resulting in features on North the 150th anniversary celebration for Morehead City and Carolina Weekend and in Our State magazine. the 50th anniversary of Emerald Isle. The TDO developed a • Working through the Division’s Heritage Tourism program, maritime oral history CD for Emerald Isle and researched and Friends of Mountain History (FOMH) provided advocacy, wrote the Historical Calendar sold during the anniversary educational support and financial assistance to heritage and celebration in Morehead City. The TDO inaugurated Big Boy cultural tourism organizations in a 25-county region of Western Henry Day in Beaufort which may lead to a larger festival in North Carolina.Through communitysupport,FOMH was able the future. The TDO is also working with Pamlico County to to provide nearly $21,000 in grants to these organizations; develop a long-term exhibit plan for their local museum and spring and fall educational resources programs were held, apply for IMLS funding. This past year, the TDO served as entitled “How ToStart an Oral History Program” and “Exhibit funding and exhibit advisor for the Ocracoke Fish House Fundamentals: Exhibits on a Budget and Building a Digital projectandisworkingwiththeOuterBanksHistoryCenterand Exhibit.” Through Museums in Partnership, the TDO provided the Outer Banks Scenic Byway committee. The TDO has also continuing support for the region’ssmall museums with regular provided support to other coastalcountiessuchasOnslowand educational meetings and newsletters. Development of a Craven for various projects. themed exhibit format, “Find Your Way Home, Again,” allowed the museums to develop their own exhibits centered around the diversity and heritage of the mountain people. • TheHighCountryCouncilofGovernmentsworkedwiththeTDO for that area to facilitate the NC Department of Environment andNaturalResources(NCDENR)RegionalRecreationMapping Initiative. Other initiatives included several projects stemming from heritage planning through the BRNHA, including the Blue Ridge Music Hall of Fame and marketing for the historic Crossnore School complex. • TheTDOforthecentral/southwestMountainregionprovided marketing resources and organizational leadership to the TransylvaniaArtsPromotion(TAP).TheTAPinitiativefacilitated development of a new collaborative strategy to promote all the arts and their impact on the local economy.The TDO also workedwiththedevelopmentofupdatedJuniorAppalachian Musician (JAM) programs for the region. JAM is a multi-county initiative in Western NC to encourage participation by young people in the heritage music traditions of the mountains. The TDO continued to work on the green and open space and cultural heritage initiative “Year of the Park” in Buncombe County which launches in 2008. • The TDOs in the northwest Mountain and northwest Piedmont regions remain committed to the ongoing Yadkin ValleyHeritageCorridorinitiativeinvolvingSurry,Yadkin,Wilkes andCaldwellcounties.Theyhaveassistedthesecountieswith the deployment of their economic impact study done by ASU and further development of their master plan. • The TDO based in Rutherford County collaborated with the counties of McDowell, Burke, Rutherford and Polk to develop a network of greenway trails. These counties are also working oncreatingtourismproductfocusedaroundtheOvermountain Victory National Historic Trail. The TDO helped Yancey, McDowell, Rutherford and Polk counties create agritourism and added-value agricultural opportunities such as the Foothills Family Farms. • Rockingham County received support from the Greensboro • TheTDOstationedattheNewbold-WhiteHouseinPerquimans regionTDOwiththeirRockinghamCountyBicycleRoutesMap. Countygarneredin-kinddonationstocompletetherenovation The TDO worked with North Carolina’s “Central Park” region of their colonial kitchen garden and work on a NCDENR Trails on their interactive tourism asset mapping and brochure and Grant for trail development alongthe Perquimans River at the providedtechnicalassistancetothetourismgroupinMontgomery site.OngoingeffortsatthesiteforBlackHistoryMonthresulted County.AlongwiththeWinston-Salem-basedTDOs,heprovided inprogrammingtoeducatethepublicabouttheQuakers’role critical organizational support for the Bricolage Regional Arts in the Underground Railroad in Perquimans County. Festival held in the central Piedmont.

13 • The Division continues to support the NC Birding Trail. In • The TDOs are all involved in various initiatives to preserve and additiontoprovidingamatchingfundspromotionalgrant,the promote the various genres of traditional and heritage music heritage program is providing developmental support for this across the state. The TDO in Winston-Salem worked with popularecotourisminitiativeasitdevelopsitsregionalcorridors. Carolina Music Ways to do a survey of heritage musicians, The TDOs have been active in promoting the site nomination events and sites in the Yadkin Valley. process as it deploys across the state, now reaching into the • Small towns are an important part of the North Carolina Piedmont and Mountains. The NC Birding Trail is prepared to landscape. Our TDOs across the state are actively involved in launchitssecondprintguidehighlightingthePiedmontregion ongoing programming either independently or in conjunction in May 2008 as a result of these activities. TheTDOassigned with partners, such as the North Carolina Rural Center, to the Greensboro region helped coordinate identification of Commerce’sDivisionofCommunityAssistanceandHandmade 16 sites in his assigned counties. inAmerica,tofosterrevitalizationthatwillmakethecommunities • TDOs continue to be actively engaged in the development of more attractive to residents and visitors. outdoor recreational/ecotourism/agritourism opportunities in • The Division supported efforts of the Blue Ridge Parkway to their regions across the state. Farms, waterways, hiking and leveragemarketingdollarsthroughamulti-yearfederalScenic bikingtrails,greenwaysandopenspacesareimportantfeatures Byways grant in partnership with the state of Virginia. in a community that improve and promote quality of life and link people with their natural and cultural heritage. Industry Relations Governor’s Conference on Tourism Tourism Day in Raleigh, Bicentennial Mall (May 15) Sunset Beach, North Carolina (March 22-27) Governor Easley proclaimed May 15, 2007, as North Carolina Tourism economic impact numbers were reported to nearly 500 Tourism Day. In Raleigh, legislators took part in the House vs. attendees during the Winner’sCircle Luncheon at Sea Trail Golf Senate Pit Crew Challenge. The Division supported the North Resort & Conference Center in Sunset Beach. Governor Easley Carolina Travel Industry Association in their successful efforts to announcedthattourismspendingacrossthestatehadgrown8.3% exhibit tourism attractions and destinations in the Legislative in 2006 to $15.4 billion. This was the single largest increase in Building during the day and host an evening reception for policy- tourism spending since the Division began collecting the data in makers at the North Carolina Museum of Natural Sciences. 1990.GovernorEasleyalsoannouncedthatmorethan45million Welcome Centers hosted their own events during National visitors came to North Carolina in 2006, ranking the state sixth in Tourism Week (May 12-20) to thank travelers. visitation behind California, Texas, Florida, New York and Penn- sylvania.Theconferencefeaturedtoptourismindustryspeakers, Mid-Year Marketing Update, Raleigh (September 11) informative learning sessions and concurrent breakout sessions. The Division hosted over 150 attendees during its annual Mid-Year Marketing Update at the Umstead Hotel and Spa in Cary. Dr. Suzanne Cook, senior research director for the Travel Industry Association, highlighted current travel industry trends. Attendees received an update on current Division programs and cooperative marketing opportunities and provided input for future marketing plans during roundtable discussions with staff. Travel Leadership Summit (September 26-27) and Travel Promotion Act, Washington, D.C. • Thirty tourism leaders from North Carolina attended the Travel Leadership Summit in Washington, D.C., September 26-27 to lobby Congress about the Travel Promotion Act and other issues facing the North Carolina tourism industry. • The North Carolina tourism delegation was one of the largest delegations in the country and hosted nearly 100 members of CongressandtheirstaffinareceptiononCapitolHillfeaturing North Carolina barbecue and wine. • Tourism leaders met with representatives from each North Carolina congressional office as well as Senators Burr and Dole. The event was extremely successful as ten North Carolina Representatives signed on to co-sponsor the Travel Promotion Act.Thosewhoagreedtoco-sponsorthebillare:G.K.Butterfield, Howard Coble, Virginia Foxx, Robin Hayes, Walter Jones, Mike McIntyre, Brad Miller, Sue Myrick, David Price and Heath Shuler.

14 Sports Development The North Carolina Division of Tourism, Film and Sports Development worked with sports organizations, event owners, sports sales managers and sports commissions statewide to enhance North Carolina’s economy, image and quality of life through the attraction, promotion and development of regional, national and international sports-related events.

• Coordinated and led a cooperative effort with sports sales • Provided contact information for sports organizations, motor- directors and managers from North Carolina communities to sports teams and professional sports teams in North Carolina. market the state as a premier sporting event destination at the • Continued updates and expansion of the online list of sports- followingtradeshows:Travel,EventsandManagementinSports relatedeventsandsportsorganizationsinNorthCarolinaonthe (TEAMS); Amateur Athletic Union (AAU); United States Sports www.sportsnorthcarolina.com website. Specialty Association (USSSA); National Softball Association • Continued updates and expansion of the online North Carolina (NSA) Convention; and the U.S. Youth Soccer Association AthleticFacilitiesGuideanddistributedhardcopiesoftheguide (USYSA) Annual Meeting. tovariouseventowners,nationalgoverningbodiesandtradeshows. • Partnered with North Carolina Amateur Sports to coordinate • Assisted communities from around North Carolina in the sports statewide sports-related events including Cycle North Carolina developmentproposalprocessbybolsteringsupportandwriting Mountains to the Coast Fall Ride, Cycle North Carolina Spring letters of endorsement. Weekend Ride, State Games of North Carolina and the North Carolina Senior Games. • Participated in the North Carolina Sports Association quarterly meetings. North Carolina Film In 2007, the North Carolina Film Office reported North Carolinasawan estimated $160.2million in direct production spending, including wages, services and goods. This represents a61% increase from 2006.

Throughout 2007, Aaron Syrett, newly appointed director of • Syrett and Hedrick met with 45 production executives in Los North Carolina Film Office, traveled to Los Angeles and New Angeles in July from all major studios and several independent York, and met with major studios, producers and filmmakers. production companies. North Carolina also had a strong presence at the Sundance Film • The staff conducted meetings with approximately 20 scouts Festival, hosting a reception for over 200 filmmakers. The Film with major networks and studio representatives. Office was the title sponsor at the SXSW Film Festival Film • Highlights of film and TV projects during 2007 include: Awards and hosted a private reception for over 300 filmmakers. — Leatherheads (Universal Pictures) starring George During 2007, the North Carolina Film Office launched a new ClooneyandRenéeZellweger.Clooneyalsodirectedthe brand executed through a logo and web and print material. The film. The Charlotte and the Piedmont Triad regions work garnered two first-place awards from the Association of served as the major locations for the three-month shoot. Filmmakers International. Release date: April 2008. NorthCarolinaoffersa15%taxincentivetoqualifiedproductions — Nights in Rodanthe (Warner Bros. Pictures) starring shootinginNorthCarolina.Ofallthemajorcompetitors forthese Richard Gere and Diane Lane is based on the novel by high-payingjobs,NorthCarolinahasoneofthemoreconservative North Carolinian Nicholas Sparks. It was filmed on the incentive programs in the country. Georgia – 30%, Louisiana – OuterBanksandinWilmington. Releasedate:September 25% , Massachusetts – 25%, Connecticut – 25%, Michigan – 42% 2008. and New Mexico – 25%. — The Marc Pease Experience (Paramount Vantage) • The film office staff grew from two to four members in spring starringBenStillerandJasonSchwartzmanwasfilmedin 2007.AaronSyrett(formerdirectoroftheUtahFilmCommission) Wilmington. assumed his duties as director in April. Sallie Hedrick of Wake ForestwasnamedproductionexecutiveinJunewithafocuson — ProductionbeganonthefifthseasonofthehitseriesOne recruiting film and television projects. Tree Hill (CW Network). • North Carolina was well represented by the Film Office and — IndependentstudiofeaturesAprilFool’sDay andBolden! regional film commissions at the annual Association of Film were filmed in Charlotte and Wilmington, respectively. Commissioners International (AFCI) Locations trade show in — The HBO pilot Eastbound and Down was shot in the Santa Monica, Calif., in April. Staff also attended the annual Wilmington area. AFCI professional development conference, Cineposium, in Santa Fe. 15 Wine & Grape Council

North Carolina is now home to over 70 wineries in various counties across the state. The number of wineries has more than tripled since 2001. North Carolina currently ranks 10th in wine and grape production nationwide. According to a recent study,the annual economic impact of the North Carolina wine and grape industry is $813 million with 5,700 jobs created.

Items of interest include: North Carolina Wine & Grape Council Supports • Exhibited at the International Association of Culinary Profes- Introduction of Eat Healthy America Act – sionals annual meeting to food opinion leaders and journalists. March 2007 • SponsoredtheAtlantaPressClubYadkinValleyWineWeekend The North Carolina Wine & Grape Council endorsed this bill as Give-away as a live auction item at the Atlanta Press Club a proactive step for ensuring that specialty crop policy priorities Christmasparty(morethan200peopleattended);15wineries are included in the 2007 Farm Bill. The Specialty Crop Farm Bill and properties donated items for the gift basket valued at Alliance, a national coalition of more than 90 specialty crop more than $500. grower organizations, is dedicated to ensuring the 2007 Farm • Made visits to Atlanta media, including The Atlanta Journal- Bill includes policy provisions that enhance the competitiveness Constitution, The Weather Channel, Atlanta Magazine and of the U.S. specialty crop industry and increase consumption of Travel Girl magazine. the over 300 specialty crops grown in the United States. • Conductedtalkradiomediatourto15outletsinNorthCarolina, drive markets and a few national stations. Summer in the City Tour – July 2007 • Coordinated the start of local columns in the Triad Business In July, Food & Wine magazine partnered with CBS’ The Early Journal,RaleighNews&ObserverandWinston-SalemJournal. Show on their six-part “Summer in the City” tour to help uncover • Continued to develop press kit materials and send custom great emerging food destinations across America. Food & Wine pitches and releases. editorsprovidedtheiradviceaboutthebestlocalspotsandmost • ConductedfamiliarizationtourofYadkinValleyandamuscadine memorable dishes for the July 13 broadcast from Raleigh. Food tastingattheUmsteadHotelforfourjournalistsincoordination & Wine also included recommendations for specific restaurants with the Salute! festival in May. in the Triangle area. • Securedplacementofstate’swineatCookingLightSupperClub North Carolina Chinese Business Association inNewYorkCityaspartofaddedvalueofthestate’smediabuy. Event – August 2007 Key placements included: Southern Living (two well spreads featuring wineries in the Yadkin Valley valued at $106,195), an TheNorthCarolinaWine&GrapeCouncilpartneredwiththeNorth Atlanta Journal-Constitution overview of the wine industry in Carolina Department of Agriculture’s Division of International the Southeast, Raleigh News & Observer, Charlotte Observer, Marketing to host a wine tasting for the North Carolina Chinese Winston-Salem Journal, www.gourmet.com blog, wine-related Business Association (NCCBA). Each participant had the placements in numerous fall color listings and others resulting in opportunity to blindly taste six different North Carolina wines an ad value of $963,927 (excluding radio placements). and score them based on preference.

Wine & Grape Month – October 2007 GovernorMichaelEasleydeclaredOctober2007WineandGrape Appreciation Month in a proclamation praising North Carolina’s wine community. Wine has strengthened the state’s economy and brings in 800,000 tourists a year.

PUBLIC RELATIONS The North Carolina Wine & Grape Council continued its public relations campaign with a goal of educating the state and the rest of the nation about North Carolina’s growing industry. The Council’s investment and program was supplemented with additional funds and collaboration from the Division. Educationalopportunitiestopressandopinionleadersincluded: • Sponsored Southern Foodways Alliance’s Camp Carolina event in Chapel Hill; North Carolina wines were featured and poured throughout the event attended by key chefs, journalists and food marketers from the state and across the nation.

16 2007 IMPACT OF TRAVEL BY COUNTY

County Expenditures Expenditures Payroll Employment State Tax Local Tax County Expenditures Expenditures Payroll Employment State Tax Local Tax ($ Millions) % Change ($ Millions) (Thousands) Receipts Receipts ($ Millions) % Change ($ Millions) (Thousands) Receipts Receipts (’06-’07) ($ Millions) ($ Millions) (’06-’07) ($ Millions) ($ Millions) ALAMANCE $140.84 7.2% $22.99 1.32 $7.84 $2.60 JONES 3.39 1.0% 0.49 0.02 0.19 0.11 ALEXANDER 16.81 3.3% 2.48 0.12 0.88 0.74 LEE 56.80 -0.4% 10.55 0.59 3.09 1.16 ALLEGHANY 19.43 8.3% 3.65 0.18 0.91 1.35 LENOIR 72.04 7.1% 12.65 0.66 3.80 1.48 ANSON 14.28 4.1% 1.84 0.11 0.79 0.37 LINCOLN 39.51 4.1% 6.67 0.34 2.08 1.24 ASHE 39.94 4.7% 6.11 0.37 1.98 2.28 MACON 115.42 3.8% 21.14 1.13 5.13 9.74 AVERY 90.72 1.6% 22.07 1.23 4.49 4.16 MADISON 30.32 11.1% 6.18 0.34 1.52 1.46 BEAUFORT 64.97 5.2% 8.79 0.45 3.13 4.11 MARTIN 27.24 2.6% 4.25 0.25 1.42 0.72 BERTIE 10.85 4.4% 1.16 0.05 0.56 0.65 MCDOWELL 38.60 4.3% 6.06 0.36 1.94 1.48 BLADEN 30.61 1.2% 3.47 0.19 1.71 0.94 MECKLENBURG 3,447.36 9.5% 1,228.02 41.33 157.74 92.10 BRUNSWICK 392.19 6.6% 77.69 4.97 17.99 25.48 MITCHELL 19.87 6.7% 3.18 0.18 0.85 0.90 BUNCOMBE 709.38 9.9% 164.38 9.35 35.24 22.72 MONTGOMERY 21.12 0.7% 2.23 0.10 0.95 2.06 BURKE 73.22 2.9% 11.22 0.65 3.85 2.26 MOORE 349.07 0.8% 83.17 5.22 17.57 11.08 CABARRUS 275.41 12.1% 65.58 3.50 15.34 4.56 NASH 218.37 12.7% 44.79 2.87 11.08 6.10 CALDWELL 46.55 6.7% 7.23 0.37 2.39 1.54 NEW HANOVER 426.08 9.7% 99.17 5.67 20.36 16.69 CAMDEN 1.69 3.6% 0.20 0.01 0.09 0.15 NORTHAMPTON 12.03 2.5% 1.46 0.06 0.51 1.06 CARTERET 269.56 2.9% 50.69 3.17 11.99 17.39 ONSLOW 159.51 7.4% 31.43 1.56 8.01 5.81 CASWELL 6.54 2.8% 0.71 0.04 0.30 0.49 ORANGE 147.55 7.2% 28.62 1.74 7.80 3.05 CATAWBA 215.17 3.6% 40.82 2.33 11.22 6.93 PAMLICO 14.98 4.3% 1.86 0.09 0.61 1.75 CHATHAM 24.83 6.0% 3.16 0.17 1.40 0.47 PASQUOTANK 47.55 8.2% 7.66 0.47 2.52 1.13 CHEROKEE 35.60 2.8% 5.77 0.34 1.66 2.24 PENDER 66.29 -0.9% 11.78 0.69 2.97 4.73 CHOWAN 18.56 5.6% 2.89 0.17 0.87 1.23 PERQUIMANS 8.23 1.7% 1.04 0.04 0.34 0.97 CLAY 12.43 4.4% 1.42 0.07 0.50 1.44 PERSON 28.81 9.5% 3.77 0.22 1.58 0.68 CLEVELAND 87.20 4.2% 13.00 0.71 4.86 1.60 PITT 176.66 4.7% 35.62 1.99 8.82 4.14 COLUMBUS 45.22 8.3% 5.65 0.31 2.46 1.32 POLK 19.60 9.6% 2.96 0.17 0.97 1.17 CRAVEN 101.70 8.0% 20.75 1.04 5.28 2.37 RANDOLPH 102.70 4.1% 16.77 0.90 5.84 1.70 CUMBERLAND 369.33 3.6% 74.88 4.00 19.10 8.13 RICHMOND 42.10 7.0% 7.89 0.45 2.16 0.83 CURRITUCK 120.01 -0.2% 23.53 1.52 5.09 5.91 ROBESON 115.39 9.5% 18.09 1.12 6.29 2.19 DARE 762.65 8.6% 165.60 11.25 36.13 36.33 ROCKINGHAM 61.91 3.1% 10.30 0.59 3.15 1.57 DAVIDSON 116.73 3.6% 17.65 0.95 6.21 4.00 ROWAN 118.27 5.5% 20.40 1.20 6.06 3.91 DAVIE 28.86 4.2% 5.32 0.27 1.53 0.54 RUTHERFORD 135.06 2.6% 20.26 1.21 7.61 4.25 DUPLIN 33.29 0.5% 4.02 0.21 1.83 1.04 SAMPSON 42.94 6.1% 5.83 0.30 2.27 1.45 DURHAM 533.80 6.4% 114.34 7.27 27.83 16.25 SCOTLAND 34.99 3.9% 6.01 0.36 1.84 0.65 EDGECOMBE 48.98 0.9% 7.03 0.38 2.56 0.88 STANLY 66.76 7.2% 9.29 0.52 3.66 2.12 FORSYTH 598.75 7.6% 106.75 5.94 33.46 11.79 STOKES 19.42 5.2% 2.59 0.13 0.94 0.80 FRANKLIN 16.50 3.7% 2.01 0.11 0.87 0.43 SURRY 83.32 6.9% 12.71 0.70 4.43 1.88 GASTON 187.22 6.8% 30.76 1.74 10.19 3.29 SWAIN 251.03 4.2% 75.14 3.33 14.45 5.59 GATES 5.14 -0.5% 0.46 0.02 0.29 0.21 TRANSYLVANIA 80.14 6.0% 15.28 0.83 3.07 3.83 GRAHAM 24.54 2.1% 4.49 0.29 1.13 1.69 TYRRELL 3.62 -0.5% 0.37 0.02 0.16 0.37 GRANVILLE 39.05 10.6% 5.14 0.30 2.14 1.15 UNION 93.29 12.2% 15.28 0.88 5.00 1.78 GREENE 4.47 1.9% 0.46 0.03 0.24 0.16 VANCE 40.24 4.3% 5.79 0.31 2.23 1.27 GUILFORD 1,083.72 5.7% 277.42 13.03 54.04 26.22 WAKE 1,480.16 10.7% 486.02 18.61 68.82 42.34 HALIFAX 64.80 7.4% 8.37 0.46 3.74 1.50 WARREN 20.34 4.8% 2.59 0.12 0.73 1.84 HARNETT 62.68 9.9% 9.43 0.55 3.32 1.50 WASHINGTON 12.83 6.4% 1.78 0.10 0.68 0.57 HAYWOOD 116.64 5.0% 23.83 1.40 5.83 5.01 WATAUGA 191.15 6.7% 43.56 2.58 9.38 7.82 HENDERSON 199.85 5.6% 37.58 2.07 8.80 9.33 WAYNE 113.03 4.0% 15.95 0.90 6.57 1.83 HERTFORD 24.53 4.2% 3.31 0.19 1.36 0.64 WILKES 61.42 3.3% 9.39 0.55 2.89 1.45 HOKE 7.98 2.8% 1.03 0.06 0.43 0.13 WILSON 86.98 7.6% 13.69 0.79 4.83 1.75 HYDE 27.29 -4.1% 5.50 0.37 1.27 1.53 YADKIN 29.96 0.8% 5.38 0.35 1.55 0.78 IREDELL 182.84 5.9% 30.46 1.74 9.69 5.97 YANCEY 27.20 2.6% 4.78 0.24 1.20 2.03 JACKSON 72.61 6.5% 12.58 0.70 3.23 5.94 JOHNSTON 174.14 8.3% 27.80 1.66 9.31 4.66 NC TOTALS 16,510.74 7.2% 4,023.59 190.89 814.98 529.03

Source: TEIM, Travel Industry Association, 2007 North Carolina Department of Commerce Division of Tourism, Film and Sports Development

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