ANNUAL REPORT FY20

Washington, DC Virginia About CAPITAL REGION USA

CAPITAL REGION USA (CRUSA)

Is the official region destination marketing organization promoting Washington, DC, Virginia and Maryland internationally, in partnership with Destination DC, the Virginia Tourism Corporation, the Maryland Office of Tourism Development and the Metropolitan Washington Airports Authority.

MISSION

More overseas travelers staying longer and spending more money.

Target Markets: China

United Kingdom

India

Germany

France

2 CapitalRegionUSA.org Goal 1: FUNDING AND FINANCE

Ensure long-range funding stability for CRUSA marketing efforts on behalf of its partners. Achieve an annual budget of $4 million, to include cash and in-kind investments from industry partners.

CRUSA achieved a budget of $2,468,227 including $908,260 in cash and in-kind investments from corporate sponsors, tour operator partners and suppliers across the region.

CASH & IN-KIND CONTRIBUTIONS

CRUSA Sales and CRUSA BUDGET SUMMARY FY 2016–2020 Marketing Programs Miles $37,200 $5,900

Funding FY16* FY17 FY18 FY19 FY20

Primary Partner Income (Destination DC, Advertising Maryland Office $262,013 of Tourism, Virginia $2,000,000 $2,150,000 $1,600,000 $1,600,000 $1,316,000 Tourism Corporation, Metropolitan Brand USA Washington $307,200 Airports Authority)

Membership Income $116,720 $243,967 Fam Tour Cash & In-kind $2,006,703 $ 1,732,692 $1,681,810 $1,730,710 $908,260 Support Contributions $118,947 Total $4,006,703 $3,882,692 $3,281,810 $3,447,430 $2,468,227 Tour Operators *Primary Partner Income includes an additional $400,000 from VTC for Air China marketing. $177,000

3 CapitalRegionUSA.org Goal 1: FUNDING AND FINANCE

Allied and Affiliate Membership Program

In September 2018, CRUSA announced a new membership program, designed to encourage investment and participation in CRUSA’s programs. Available to regional DMOs, attractions, hotels and other tourism entities, these memberships bundle CRUSA’s most popular programs and opportunities and offer a chance for Allied Members to share input with our board as part of a new advisory committee.

In FY20, 10 DMOs were part of the membership program: Visit Annapolis, StayArlington, Visit , Charlottesville Albemarle CVB, Visit Frederick, Visit Williamsburg and Visit Virginia Beach as Allied members and Visit Alexandria, Visit Fairfax and Visit Richmond as Affiliate members.

Full details on the program are available at CRUSA.org.

4 CapitalRegionUSA.org Goal 2: MARKETING AND PUBLIC RELATIONS

Create and implement integrated marketing strategies that are innovative and “leading edge,” that advance the CRUSA brand and that attract funding.

CONSUMER MARKETING PRINT TRAVEL GUIDES

CRUSA completed year 10 of its CRUSA’s overseas representatives in China, the United Kingdom, integrated marketing partnership Germany and France distributed approximately 80,000 print with Miles, providing opportunities for holiday guides to travel trade, media and consumers. In addition, industry participation in CRUSA’s print there were 1,605 downloads of the e-Guide across all languages. holiday guides, website advertising, email, search engine marketing and Brand USA opportunities. The program generated $262,013 in support from

industry partners.

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000_CRUSA119 CVR_UK_28.indd 1 11/26/19 3:20 PM 000_CRUSA119 CVR_FR_8.indd 1 11/26/19 2:54 PM 5 CapitalRegionUSA.org Goal 2: MARKETING

Maintain a robust, interac- tive website that supports the brand and is CRUSA’s primary marketing tool.

WEB MARKETING:

CRUSA’s responsive In FY20, CRUSA continued enhancing a content optimization strategy to boost ongoing digital website in seven marketing efforts. CRUSA focused on a customized content marketing approach (a smart languages balance of paid and organic traffic) to complement the traditional search engine marketing engages visitors (paid traffic) campaigns. The goal was to incrementally improve organic performance and user with immersive engagement on the site — which is demonstrated in many of the following metrics: photography, videos  94% increase in traffic from social and prominent calls to action.  189% increase in traffic from paid search  7% increase in overall sessions (621,634 sessions total)

6 CapitalRegionUSA.org Goal 2: MARKETING

E-MAIL MARKETING SOCIAL MEDIA:

CRUSA delivered  Grew Facebook fan base by 147,234 e-newsletters 7% to 67,571 followers. in English, generating In addition to launching a 43,503 opens and French-language Instagram 8,401 clicks. account in FY20, CRUSA’s English-language account saw a 73% increase in followers and a 39,834% increase in post reach this year.

Grew Weibo fan base by 21% to 48,439 fans. Grew WeChat fan base by 32% to 10,681 followers.

Grew YouTube views by 11% to 44,900 views. Launched a Pinterest account this year, creating nine new boards and saw a 47% increase in engagement and traffic to the account. 7 CapitalRegionUSA.org Goal 2: MARKETING

Partner with tour operators to develop cooperative marketing campaigns to reach the consumer and generate flights and room night bookings.

TOUR OPERATOR COOPERATIVE MARKETING

CRUSA partnered with 15 overseas tour operators for joint consumer marketing initiatives in the United Kingdom, Germany and France. CRUSA’s investment of $188,810 (including 20% matching Brand USA funds) was also matched by $280,100 from the operators, resulting in campaigns valued at $468,910. Nine regional DMO partners participated in the campaigns and contributed an additional $14,000 in support. (Allied members received co-op participation as part of their benefits.)

The majority of these tour operator campaigns launched in winter 2020. Due to the COVID-19 pandemic, all campaigns were paused and will resume once travel restrictions are lifted. Results will be reported once the campaigns are complete.

8 CapitalRegionUSA.org Goal 2: MARKETING

Use media relations to generate at least $17.5 million in earned media.

MEDIA RELATIONS

CRUSA achieved editorial coverage in print and electronic media outlets with an earned media value of $12.8 million.

CRUSA and its partners hosted 25 journalists supported by $118,947 in in-kind support from travel industry partners across the region and beyond who provided free or reduced-rate flights, accommodations, meals, attraction admissions and transportation for our clients.

9 CapitalRegionUSA.org Goal 2: MARKETING

Trade marketing efforts must provide an opportunity to deliver CRUSA brand messages to the consumer to drive room nights and increase length of stay.

TRADE MARKETING

CRUSA reps conducted 347 sales calls and 46 training seminars for 6,355 travel agents and tour operator sales and reservations staff members across all four CRUSA markets.

While CRUSA organized multiple missions this year, only two missions were able to take place: a sales mission to France in December and a media mission to France in February. All other missions were postponed due to the COVID-19 pandemic. The media mission to France generated 37 leads and the sales mission generated 19 leads.

CRUSA participated in four international consumer and trade shows, including Brand USA Travel Week, Unite Visit UK and IMM Travmedia.

CRUSA and its partners hosted 3 trade fam tours for 29 clients. These fam tours were supported by $286,006 in in-kind support from travel industry partners and international airlines who provided free or reduced-rate flights, accommodations, meals, attraction admissions, flights and ground transportation for our clients.

4 consumer and 347 sales calls trade shows training seminars for 6,355 46 travel professionals 11 salessales andand 11 mediamedia missionmission 29 clients hosted on 3 trade fam tours

10 CapitalRegionUSA.org Goal 2: MARKETING

Work with Brand USA to ensure that CRUSA maximizes exposure across all relevant platforms.

BRAND USA

Brand USA provided $31,300 in funding to expand CRUSA’s digital marketing campaigns and tour operator co-op campaigns. In addition, CRUSA benefitted from approximately$275,900 in value-added investment by Brand USA in creating the programs in which CRUSA participated.

MULTI-CHANNEL CAMPAIGNS: United Kingdom and India Capital Region USA participated in two Brand USA-led multi-channel campaigns targeting the United Kingdom and India.

BROUGHT TO YOU BY VISIT THE USA STORM THE CAPITOL From cosmopolitan Washington, DC to Virginia’s UNITED KINGDOM: JANUARY–APRIL 2020 Blue Ridge Mountains, the capital region is perfect for a US fly-drive trip. By Tracey Davies Full-page advertorial in The Time magazine (516,000 circulation; 1.3 million readership)

acked with history, culture and Chincoteague and Assateague Islands, political drama, there’s no better or sip your way through the vineyards of place to start your stateside the Roanoke Valley. Maybe spend the day Digital versions of the advertorial appeared on bespoke Brand USA adventure than in Washington, DC. at Monticello, Thomas Jefferson’s historic P 18th-century plantation in Charlottesville, Swing by the Visitor Center, tour the Capitol Building then mooch or visit Colonial Williamsburg, a brilliant, down the and wind through interactive living history museum. Finally, its free-to-enter Smithsonian museums. follow the Trail of the Lonesome Pine on See Dorothy’s ruby slippers, Bert and the Skyline Drive through the magnificent hub (9,274 views) and The Telegraph iPad edition (6,864 views) Ernie, and the original Star-Spangled Blue Ridge Mountains to the waterfalls and Banner in the National Museum of rocky peaks of Shenandoah National Park. American History, or the world’s first Land of contrasts Clockwise from top: airplane in the National Air & Space US Capitol Building; Chincoteague Museum. Venture over to Georgetown, Island, Virginia; Baltimore Inner Harbour; famed for its Federal-era architecture, FIVE FREE ATTRACTIONS Shenandoah National Park for brunch and a browse before paying IN THE CAPITAL REGION homage to Abe at the Lincoln Memorial, Customized CRUSA Expedia landing page generated $515,662 which is illuminated at night. • The Smithsonian National Museum While it’s tempting to spend all your of African American History and time in DC, it’s well worth exploring further Culture in Washington, DC afield. Maryland is under an hour’s scenic • Arlington National Cemetery, where drive away. Head to Baltimore for maritime President John F Kennedy is buried museum Historic Ships in Baltimore, in the (2,488 room nights) in booked hotel revenue and $271,779 • Wild horses of Chincoteague Island city’s Inner Harbor. Visit Fort McHenry, where the Star-Spangled Banner was • The Blue Ridge Parkway (469 miles in written, or linger at the ‘cathedral of total) through the Blue Ridge Mountains books’, the George Peabody Library. • The National Air and Space Museum’s Further south is Maryland’s state capital Udvar-Hazy Center in Chantilly, Virginia (392 flights) in booked flight revenue Annapolis, which overlooks Chesapeake Bay. Best known for its Naval Academy, historic district and pastel-hued clapboard Plan your great American holiday houses, the pretty city also has a buoyant at capitalregionusa.co.uk arts scene with 25 galleries in downtown. From wild Atlantic beaches and the Civil Rights Trail to the Blue Ridge Mountains, Virginia has it all. Head to the Eastern Total campaign impressions: 4.49 million

GETTY Shore to meet the wild ponies that roam

11 CapitalRegionUSA.org Goal 2: MARKETING

CAPITAL REGION USA: Beaches, Shopping and Luxury Travel onuments and museums are defining features of Washington, DC's grandeur, but visitors can journey beyond Virginia Beach,Virginia Assateague Island National Seashore, Maryland M the USA's capital city and into Maryland and Virginia for even more one-of-a-kind enriching experiences.Throughout the region, discover national parks, urban adventures, exciting nightlife, distinctive cuisine, world-class shopping, beaches, culture-rich cities and small towns. Visiting the Capital Region is easy via nonstop flights from around the world to Washington Dulles International Airport. LIFE'S A BEACH ❖ Virginia Beach in Virginia will leave you spoilt for choice. Explore the 60 kilometers shoreline, stroll the 4.8 kilometers boardwalk, stop at the nautical-themed shops and binge on some seafood. Try kayaking with dolphins, surfing and parasailing. Rent a cottage Washington.org, Virginia Tourism Corporation, Robert Peterson Corporation, Tourism Virginia Washington.org,

at the peaceful Sandbridge community to simply relax and bask : s t i

Arundel Mills, Hanover, Maryland d in the company of family and friends. e r C

o t o

❖ At Ocean City in Maryland, start with a leisurely stroll along the h P 4 km wooden boardwalk.The dining, shopping, lively street performances and amusement parks at the pier attract those with a penchant for fun and frolic. Located at the south end of the pier, the Jolly Roger at the Pier amusement park is packed with classic rides such as the Slingshot and Looping Star Roller Coaster.

❖ Assateague Island which straddles Maryland and Virginia, lets you become one with nature. Gaze at wild ponies, watch shorebirds or paddle a kayak along the shore. SHOPPING IN CAPITAL REGION USA Shopping helps take a piece of your holiday back home. For those City Dock, Annapolis, Maryland Tidal Basin,Washington, DC shopaholics, here are a few destinations to consider:

❖ Washington, DC - Visit CityCenterDC, a shopping and dining hot spot. ❖ Tysons Corner,Virginia - offers over 100 shops INDIA: NOVEMBER 2018–JANUARY 2019 and a Ritz-Carlton Spa.

❖ Bethesda, Maryland - Bethesda Row features over 30 fashion and lifestyle brands.

❖ Arlington,Virginia - Fashion Centre at Pentagon City across the Potomac River from Washington, DC is a must for fashionistas.

❖ Capital Region USA outlet malls - For good bargains, try Arundel Mills in Hanover, Maryland; Tanger Outlets National Harbor, south of Washington, DC; and Leesburg Premium Outlets, near Washington Full-page advertorial in Times of India Dulles International Airport. LUXURIOUS ENCOUNTERS ❖ Special experiences - Treat yourself to VIP outings in Capital Region USA. Possibilities include: National Cherry Blossom Festival’s Pink Tie Party annually at the end of winter (in March); sitting courtside or in a suite at professional sporting events such as ' basketball or Baltimore Ravens' football; sightseeing flights with Monumental Helicopters aerial tours of DC, Annapolis and Baltimore; a private yacht tour of the Chesapeake Bay from Annapolis and Baltimore; or a treatment at The Spa, Four Seasons Hotel, labelled by TripAdvisor as one of the 'Top 5 Luxury Dedicated Expedia landing page Spas Not to Be Missed' in Washington, DC.

❖ Wine and dine - A tour of a farm-cum-restaurant gives you insights Monticello, Charlottesville,Virginia Pleasure House Oyster Farm,Virginia Beach,Virginia Lincoln Memorial,Washington, DC about local culture and cuisine. Book the Pleasure House Chef's Table Tour to sample fresh oysters. Reserve the chef's table at one of the region's Michelin-starred restaurants. Schedule a private winery tour from one of the 400 wineries. Check ahead to see which one extends tour service for guests, including RdV Vineyards, Boxwood Estate Vineyards and Greenhill Winery and Vineyards.

❖ Wellness-enhancing wonders - Known for historic attractions, wineries, breweries, views and access to the Blue Ridge Mountains, Charlottesville,Virginia, promises a wholesome retreat. Schedule a Brand USA paused all campaigns in response to the pandemic. private tour that includes the less-travelled portions of Thomas Jefferson's home, Monticello. Stay nearby at the historic Boar's Head, a resort offering tennis, restaurants and beautiful grounds. Add a game of golf for a well-rounded experience. Results will be provided once the campaign is completed.

Jefferson Memorial,Washington, DC

IPINYOU CAMPAIGN: CHINA

NOVEMBER 22–DECEMBER 31, 2019 CRUSA received an added value iPinYou campaign from Brand USA to support our participation in Brand USA’s Summer 2019 Ctrip program. The campaign directed traffic to CRUSA’s Ctrip page. The campaign generated more than 33 million impressions and over 127,507 clicks. The number of impression reached 113.30% achievement rate and the number of clicks reached 123.91% achievement rate.

12 CapitalRegionUSA.org Goal 3: RESEARCH

Strengthen research tools to (1) better understand our customer, (2) assess economic impact of overseas arrivals to region and (3) measure and evaluate marketing programs.

Overseas visitors stay longer and spend more money in the Capital Region than visitors from the USA. In 2019, 2.4 million overseas travelers visited the Capital Region, stayed an average of 9.4 nights and spent nearly $5.2 billion on hotels, meals, shopping, attractions, and other goods and services across Washington, DC, Maryland and Virginia.

2019 OVERSEAS ARRIVALS & RECEIPTS TO CRUSA 2019 ARRIVALS BY WORLD REGION

Country of Residence Arrivals Receipts 4% Oceania 10% Other 5% Middle East China 241,000 $1,337,494,146 10% United Kingdom 259,000 $330,229,969 South America

Germany 176,000 $228,240,926

France 115,000 $165,382,854

South Korea 139,000 $433,611,141 43% India 176,000 $328,733,452 28% Europe Asia

Total Overseas 2,403,000 (-1.2%) 5.2 billion (-3%)

Research reports on 2019 Overseas Arrivals to CRUSA may be obtained by contacting Scott Balyo at 540-450-7593 or [email protected].

13 CapitalRegionUSA.org CAPITAL REGION USA BOARD OF DIRECTORS

Virginia Tourism Maryland Office Destination DC: Corporation: of Tourism Development: Officers: Elliott Ferguson, Rita McClenny, Liz Fitzsimmons, President & CEO Chair, President & CEO Managing Director, Division Theresa Belpulsi of Tourism, Film & the Arts Theresa Belpulsi, Diane Bechamps, Vice President, Tourism, Vice Chair, Vice President, Marketing Marci Ross, Sports & Visitor Services Heidi Johannesen Assistant Director Heidi Johannesen, Robin McClain, Secretary/Treasurer, Global Marketing Director Rich Gilbert, Senior Vice President, Liz Fitzsimmons Travel Trade Sales Manager Marketing & Communications

Capital Region USA, Inc. Scott Balyo, Kimberly Petersen, Stacey Sheetz, PO Box 13352 Executive Director Marketing and Marketing and Richmond, VA 23225 [email protected] Administrative Director Membership Director USA [email protected] [email protected]

Audited financial statements for Capital Region USA may be obtained by contacting Scott Balyo at 540-450-7593 or [email protected].

CapitalRegionUSA.org