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BALTIMORE: the Big Picture

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BALTIMORE: the Big Picture ANNUAL REPORT AND BUSINESS PLAN FISCAL YEARS 2017-2018 BALTIMORE: the Big Picture -1- FROM THE PRESIDENT & CEO AND BOARD CHAIR BALTIMORE: the Big Picture The theme of this year’s report is relevant in many ways. First, it reminds us of our core mission. As the City’s destination CONTENTS marketing organization, Visit Baltimore’s job is to promote Baltimore, painting a destination picture that inspires and influences the decisions of individual travelers as well as meetings and convention groups. FY2017 numbers demonstrate how we are fulfilling that mission: our sales team booked 385 unique pieces of business for future years; our services team, together with our hospitality partners, welcomed more than 471,000 attendees from business that convened in Baltimore, including high- OUR ROLE 3 Tourism Matters profile events such as the Army Navy Game and the National Urban League Convention; and, our marketing and PR teams’ Visit Baltimore, a private, collective efforts helped drive a record 25.9 million total person trips to Charm City. Of course, it is also our responsibility to not-for-profit membership share the big picture about why a healthy and thriving meetings and tourism industry matters (see Tourism Impact Report on 7 2017 Highlights organization, is the official sales page 6). That task was particularly important in FY2017 as we took our case for Visit Baltimore’s funding to our elected officials and marketing organization for in Annapolis, resulting in the renewal of our base of hotel tax dollar support through FY2022. Baltimore City. Convention Sales & Services 15 Second, it reflects new efforts underway and new tools at our disposal. With leadership change in November, Visit Baltimore took a purposeful pause to listen to our stakeholders, by having focused discussions about our Baltimore narrative and our We generate economic benefits position within the Baltimore community. Visit Baltimore has long championed Baltimore as a city of neighborhoods, but 21 Marketing & Communications for the region through the we have also taken recent strides to ensure that our message and our membership reflect this longstanding commitment attraction of convention, group to inclusivity. Our membership network grew to 775 area businesses representing every district, including 26 new women and leisure visitors. We also work and/or minority-owned businesses through our Diversity Membership Program. Our marketing team enlisted local Baltimore Visit Baltimore Education & to provide a positive experience 25 talent to create music for a new – including footage from 90 unique attractions, events and Training Foundation Blaqstarr destination video for all guests. neighborhoods – to better depict the Baltimore experience (in two and a half minutes). We are also expanding the MyBmore campaign, a testimonial campaign at heart, to include the people who know Baltimore best – Baltimoreans – through Learn more about who we are, 27 Membership #MyBmore. By investing in new technologies, we are now able to incorporate user-generated content sourced through social what we do and why it matters media channels, images that are visually inspiring to travelers, into our out-of-market campaigns. in the pages that follow. Finally, our Big Picture is aspirational. To be the best Visit Baltimore possible, we have begun an intensive strategic visioning 29 Operations & Financials process, bringing together internal leadership and a cross-section of Baltimore stakeholders to develop our goals and an action plan for the next five to seven years. We look forward to sharing the outcomes of this plan, but we can already say the following with certainty: Visit Baltimore wants to be even more deeply woven into our City’s fabric. In this way we can be the 31 2018 Strategy best stewards of the Big Baltimore Picture: an authentic, exciting and unforgettable experience, shaped by a rich culture and history, unique venues and inspiring people. 33 Leadership We encourage you to read more about our results and efforts underway in the pages that follow. 35 Appendices JOHN FRISCH AL HUTCHINSON Chairman, Baltimore Convention President & CEO & Tourism Board of Directors -2- 2016 TOURISM IMPACT REPORT As Maryland’s top destination, tourism drives Baltimore’s economy and quality of life in NUMBER OF DOMESTIC VISITORS VISITOR DEMOGRAPHICS (day & overnight) a number of ways – visitor spending, job STATE OF TRIP DESIGNATED creation and tax generation. 2014 ORIGIN: MARKET AREA (DMA) OF TRIP ORIGIN: In Calendar Year 2016, Baltimore welcomed 25.9 Million Maryland 20% 2015 domestic person trips, an increase of 2.8% from 2015 with Pennsylvania 19% Washington, DC 18% gains in both overnight and day trip categories. Thanks in Virginia 12% New York, NY/ 2016 25.9M NJ/PA/CT 13% part to a continued surge in overnight demand, Baltimore’s New York 9% hotel performance was strong – with occupancy, ADR and Baltimore, MD 11% 5 10 15 20 25 30 New Jersey 8% RevPar all increasing over CY2015, some even outpacing the Philadelphia, PA 9% Day Visitors Overnight Visitors Washington, DC 3% national average. While “Visiting Friends and Relatives” was Harrisburg-Lancaster California 2% the most frequent purpose for overnight travel, “Marketable Lebanon-York, PA 9% Leisure” (those influenced by marketing efforts) still dominated North Carolina 2% Norfolk-Portsmouth- Baltimore’s day trip market with “special events” cited as the Florida 2% Newport News, highest marketable trip purpose. 15.3 MILLION DAY TRIPS West Virginia 2% VA/NC 3% Los Angeles, CA 2% Baltimore’s visitors continued to draw primarily from our East Massachusetts 1% Coast drive market. Regardless of their point of trip origin, Illinois 1% Boston, MA 1% 24% children/76% adults Baltimore’s visitors once again enjoyed our historic places, Ohio 1% Chicago, IL 1% cultural assets, and culinary/craft brew scene at similar or Trip Purpose Texas 1% higher rates than in other U.S. destinations. COMBINED DAY AND OVERNIGHT MARKET SHARE: Baltimore’s visitor spending left a noticeable mark on area 43% 46% 11% 1-4% 5-9% 10-14% 15-19% 20% or more businesses, residents and the region at large: $5.64 Billion Friends/ Marketable Business in direct visitor spending – an average of $221 per visitor – Relatives Leisure Trips generated upwards of $705 million in local City and State taxes. Not only was this a 3.8% increase from CY2015, but also, these revenues saved each Baltimore area household $680 in personal income tax contributions. Visitor spending TOP ACTIVITIES OF SPECIAL INTEREST (day & overnight) increased most significantly (5%) for food & beverage, spending in alignment with Visit Baltimore’s strategic focus on culinary 10.6 MILLION OVERNIGHT TRIPS tourism promotion. In addition, while domestic visitation dominates Baltimore’s current visitor market, we hope to see further growth in international inbound visitation and spending 21% children/79% adults Exceptional Culinary Brewery Tours & with expanded outreach in international markets as well as Historic Places Family Reunion Cultural Activities & gains in both lift and route access at BWI Airport. Attractions Experiences Beer Tastings Trip Purpose The other big story? Baltimore’s meetings and tourism 25% 22% Baltimore 16% 13% 6% economy continued to prove a major employer for the Baltimore Baltimore Baltimore Baltimore region, creating or sustaining 85,000 jobs. According to Visit 54% 28% 18% Baltimore’s own research, we can proudly count more than Friends/ Marketable Business 19% 17% 48,750 of these positions as representatives of our own 775 Relatives Leisure Trips U.S. Average 17% 10% 5% U.S. Average U.S. Average U.S. Average business strong membership network, with at least half of U.S. Average those positions held by city residents. -3- -4- 2016 TOURISM IMPACT REPORT TOURISM IMPACTS HOTEL PERFORMANCE The total economic impact of tourism extends far beyond direct visitor spending. BALTIMORE NATIONAL AVERAGE Calendar Year CY14 CY15 CY16 CY14 CY15 CY16 Occupancy 67.6% 67.1% 67.8% 64.4% 65.4% 65.5% Average Daily Rate (ADR) $111.67 $113.08 $114.50 $115.06 $119.88 $123.47 Revenue per Available Room (RevPar) $76.25 $76.63 $78.43 $74.22 $78.56 $81.09 58,822 7.3% directly employed of total wage $34.5 MILLION 500+ HOTEL ROOMS JOBS IMPACT and salary Baltimore City hotel taxes collected in FY2017 Are under construction or in planning as of Spring 2017 85,052 JOBS employment in created or sustained 26,230 Baltimore indirectly employed VISITOR SPENDING by category VISITOR SPENDING by market PURPOSE 7% Business Leisure 77% 23% Activity generating 9% 29% $1.5 BILLION in taxes and fees STAY including ECONOMIC $5.6 BILLION Overnight 75% Day 25% 13% in total visitor IMPACT MARKET International spending $10.3 BILLION Domestic 93% 7% in total tourism 16% 22% industry sales $411 MILLION $294 MILLION in State Revenues in City Revenues Food & Beverage Retail ($736M) ($1,633M) SCOURCES: Other Transportation Lodging ($1,258M) ($490M) Longwoods International U.S. Travel Association Tourism Economics Smith Travel Research Saving $680 in personal tax contributions Recreation ($931M) Air Travel ($408M) PER BALTIMORE HOUSEHOLD -5- -6- LIGHT CITY BALTIMORE: Bigger, Brighter, and Bolder March 31 – April 7, 2017 YEAR IN Visit Baltimore continued to lead all out-of-market advertising and PR to drive increased awareness of and visitor traffic to Baltimore for the second year of Light City Baltimore. Our efforts paid off. Thanks in part to a strategic PR plan including advance REVIEW deskside media appointments in New York City and
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