be our guest - san diego tourism marketing district · 2017-03-22 · 1 2 the creation of the san...

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Be Our Guest

san DieGO tOurism marketinG DistrictAnnuAl RepoRt 2009

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contentsMessage from the Chair and Executive Director 1

About SDTMD 4

Benefits to San Diego 5

Hotels 9

Market Assessment 11

Return on Investement 17

Board of Directors 41

Contractors and Funding for FY2010 42

taBle Of contentsThe San Diego Tourism Marketing District (SDTMD) is a nonprofit, mutual-benefit corporation dedicated to improving tourism and hotel room night consumption in the City of San Diego.

Purpose

SDTMD provides a private, nonprofit funding vehicle to stimulate hotel room demand through tourism promotion, marketing and advertising programs. The judicious allocation of these resources creates a positive economic, fiscal and employment impact on lodging businesses in the City of San Diego.

Goals

> Enhance destination marketing

> Enhance tourism activity

> Increase hotel room night consumption/occupancy

> Compete aggressively with major travel markets

> Deliver $10.5 million in Transient Occupancy Tax annual savings to the City of San Diego General Fund (Total: $52.5 million over 5 years)

> Raise approximately $25 million in assessments annually

mission

Tourism promotion is a valuable function for San Diego city government.

Horton Grand Hotel

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The creation of the San Diego Tourism Marketing District (SDTMD) happened at the right time — in the right place. We are pleased that what looked promising on paper — the formation of a nonprofit funding engine which follows the model of successful Tourism Business Improvement Districts (BIDs) — has now been realized and shows great potential. Today, the SDTMD, through assessment fees from 183 hotels, represents a beacon for a local tourism industry weathering stormy economic times.

During FY2009 (July 1-June 30, 2009), the SDTMD’s first operating year, $27 million in assessment fees were distributed. The majority of these funds were disbursed to ConVis, San Diego North CVB and special event organizations. Each embraced and pursued the SDTMD mission: to improve tourism and hotel room night consumption. We are pleased to report impressive results, as individually and collectively, the SDTMD’s contractors performed well when measured against stringent Return on Investment (ROI) requirements.

These returns were accomplished in an environment of strict fiscal management of internal operations. The result: SDTMD had an operational savings of more than $200,000 in FY2009.

Successful ROI encompassed a range of small to large contractors. The San Diego Bowl Game Association, organizers of the 2008 Holiday Bowl college football game, attracted visitors that booked 45,000 rooms, representing nearly $5 million in SDTMD hotel room night revenue, as well as contributing $34.7 million to the local economy. Meanwhile, a smaller contractor, the San Diego Crew Classic, demonstrated a strong 10:1 return. Additionally, some contractors reported a ROI of 100:1 on leveraged SDTMD dollars. This focus on room nights and ROI distinguishes the SDTMD model, and in cities throughout the state and nationally, our emphasis on accountability is being monitored for implementation.

ConVis received $22 million in SDTMD-assessed funds for FY2009. This was a 159% increase from the $8.5 million received from City TOT funds in FY2008. Partnership with SDTMD marked a shift from years of shrinking tourism promotion dollars and allowed ConVis to focus on long-term strategic planning, research, marketing and public relations. Short term, ConVis’ portion of SDTMD dollars resulted in a high-profile advertising launch in the spring, spearheaded by the “Happy Happens” tagline. A national cable TV campaign focused on reaching the state of California with this strong San Diego destination message. Networks were selected based on travel, family and adult indulgence. This cable campaign was supported by Online Travel Agency (OTA) promotions on Travelocity, Expedia and Orbitz. Early surveys from top drive markets indicate that the campaign in tandem with the OTA promotions scored high in ad penetration and effectiveness.

The SDTMD’s creation was especially well-timed. Nationwide, hotel performance suffered from the effects of the worst economy since the Great Depression. Unemployment rates and gasoline prices soared, and corporate travel and disposable family income diminished. However, while overall hotel occupancy was down in San Diego, SDTMD-assessed hotels performed well when measured against non-SDTMD hotels. For example, the SDTMD funded ConVis Online Travel Agencies (OTA) programs tracked through Expedia, Orbitz and Travelocity showed a 26% increase over the prior year for City of San Diego TMD hotels, yielding nearly a 2% increase in revenue. As a comparison, the non-TMD Hotels in the County of San Diego showed nearly a 7% decrease in their OTA sales resulting in nearly a 16% decrease in revenue over the prior year. These performance figures are indicative of our immediacy, value and impact.

Certainly, the SDTMD’s story is still being written. Our contract is in effect until December 2012, and our progress, to date, reflects the strong contributions of SDTMD’s staff, partners and Board. We thank them for their effort and leadership. Our special thanks to the San Diego City Council for their assistance in creating the SDTMD, and to Mayor Jerry Sanders, for granting final approval for this vital public-private partnership.

We emerge from our first year with cautious optimism for the future. We must continue to prudently distribute SDTMD funds to established and promising contractors, seek strong ROI from those contractors and demonstrate our viability to participating hotels. With such fundamentals in place, we can stay at the forefront of great travel destinations and have a positive and vital economic impact on the City of San Diego.

C. Terry Brown Chairman

Lorin Stewart Executive Director

messAge fRom the chAiR And executive diRectoR

14:1 ROI

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aBOutThe San Diego Tourism Marketing District (SDTMD) is a nonprofit organization consisting of 183 lodging business owners and managers committed to maintaining San Diego’s leadership in the visitor industry. This collaborative effort is modeled after other successful Tourism Business Improvement Districts (TBID) — types of partnerships in which business owners self-assess fees and utilize them to create demand for tourism. SDTMD’s privately levied, mutual-benefit fee structure is an alternative to increasingly limited public funding resources for tourism, and is allocated for certain categories of expenditure and fixed funding. A minimum of 50% of SDTMD assessments are distributed to the San Diego Convention & Visitors Bureau (ConVis) to support long-term marketing. Additional funds are competitively awarded to local tourism groups and event organizers that demonstrate strategies and tactics designed to aggressively promote San Diego and capture overnight visitors. SDTMD’s creation as a funding engine for tourism marketing, acknowledges tourism’s vital role in the local economy and reflects an ongoing, unified public-private effort to encourage and finance destination marketing.

Quick Facts: SDTMD Timeline

> December 2007 – Hotels vote to participate in a tourism marketing district

> January 2008 – Collection of assessments begins on January 1, 2008

> April 2008 – SDTMD is approved for a five-year contract with the City of San Diego

> April 2008 – SDTMD Board constituted and first Board meeting held

aBOut sDtmD

cAtAlyst foR success & gRowth

Hard Rock Hotel The U.S. Grant

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Lafayette Hotel & Suites

BenefitsBy FY2012, SDTMD expects to:

> Protect the San Diego Transient Occupancy Tax (TOT) by maintaining and increasing San Diego’s market share against our regional and domestic competition

> Relieve the City of certain tourism support obligations: FY2008 – $5.3 million and FY2009 – $10.6 million

> Raise approximately $25 million in assessments annually

How SDTMD Works

In April 2008, the City of San Diego agreed to a five-year contract with the San Diego Tourism Marketing District (SDTMD) to implement the SDTMD. Per the agreement, SDTMD does not represent a marketing entity, but rather, a funding engine that drives promotion of San Diego to enhance tourism and hotel room night consumption.

SDTMD maintains several core participation and contributory guidelines for hoteliers and contractors, including:

SDTMD Hotels (183 hotels in the City of San Diego with a total of nearly 38,908 rooms)

> Only hotels with 70 or more rooms are assessed

> Assessment equals 2% of gross hotel room rate in addition to the 10.5% Transient Occupancy Tax (TOT)

> Assessments may be passed on to guests

> Hotel operators must remit assessments on a monthly basis (and separately from TOT collections)

Benefits tO San Diego

An effective

public-pRivAte pARtneRship

Bahia Resort Hotel

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it is All About RetuRn on investment

SDTMD Contractors

> All contractors must undergo an application process that clearly articulates how they will benefit hotel occupancy in the City of San Diego.

> Successful applications must clearly describe the strategies and tactics for delivering room nights, as well as estimated projections for occupancy and gross room revenue.

> All ROI results are subject to third-party audit.

Assessments

Assessment fees are strictly dedicated to securing visitor traffic and room nights through a diverse mix of marketing programs, projects and activities, including:

> Advertising

> Marketing promotion

> Direct sales

> Press and/or public relations

> New product development

> Prospective marketing and visitor services

> Marketing research

> eMarketing and Web strategies

> Partnership marketing

> Special events promotion

Humphrey’s Half Moon

Inn & Suites

Hyatt Regency Mission Bay Spa And Marina

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500 West Broadway Bahia Resort Hotel Bay Club Hotel & Marina Beach Cottages, The Best Western Americana Inn Best Western Bayside Inn Best Western Blue Sea Lodge Best Western Golden Triangle Best Western Hacienda Hotel Best Western Inn By The Sea Best Western Inn-Miramar Best Western Island Palms HotelBest Western Mission Bay Best Western Yacht Harbor HotelBest Western Seven Seas Lodge Bristol Hotel California Suites Hotel Carmel Highland G & T Resort Catamaran Resort Hotel Comfort Inn & Suites Hotel Cir Comfort Inn & Suites Zoo/Sw Comfort Inn Airport-Old Town Comfort Inn Gaslamp Comfort Suites Country Inn & Suites Courtyard By Marriott Courtyard By Marriott San Diego Old TownCourtyard By Marriott-L.S. Courtyard Rancho Bernardo Courtyard San Diego Downtown Crowne Plaza San DiegoDana Inn on Mission BayDays Inn Days Inn Days Inn & Suites Days Inn Suites-Point Loma Del Mar Hilton Doubletree Club Hotel Doubletree Golf Resort San Diego Doubletree Hotel Del Mar

Doubletree Hotel San Diego-M.V Economy Inn Embassy Hotel Embassy Suites Embassy Suites Hotel Empress Hotel, The Estancia La Jolla Hotel & Spa Extended Stay America Extended Stay America E-Z 8 Motel of Old Town E-Z 8 Motel-South Bay Fairfield Inn & Suites Four Points Hotel Sheraton Good Nite Inn SeaWorld Partner Half Moon Inn Hampton Inn Hampton Inn Hampton Inn Del Mar Hampton Inn SeaWorld/Airport Handlery Hotel & Resort Hard Rock Hotel Hilton Garden Inn Hilton Garden Inn San Diego-Rb Hilton Harbor Island Hilton Hotel-San Diego Hilton La Jolla Torrey Pines Hilton San Diego BayfrontHilton San Diego Del MarHilton San Diego Gaslamp Quarter Hilton San Diego Mission Valley Holiday Inn Bayside Holiday Inn Express Holiday Inn Express Holiday Inn Express Holiday Inn Express Holiday Inn Express-Old Town Holiday Inn Express & Suites Holiday Inn Express Mission Bay Holiday Inn Harbor View Holiday Inn Mission Bay SeaWorld

Holiday Inn Mission Valley-Stadium Holiday Inn Rancho Bernardo Holiday Inn San Diego Downtown Holiday Inn San Diego North MiramarHoliday Inn San Diego on The Bay Homestead Village Homestead Village Mission Valley Homewood Suites Homewood Suites By HiltonHorton Grand Hotel Hotel La Jolla At The Shores Hotel Solamar Howard Johnson Howard Johnson Inn Humphrey’s Half Moon Inn & Suites Hyatt Regency Mission Bay Spa And Marina Hyatt Regency La Jolla Kings Inn Kona Kai ResortLa Jolla Beach & Tennis Club La Jolla Cove Suites La Jolla Marriott La Jolla Residence Inn La Jolla Shores La Jolla Shores Hotel La Pensione La Quinta Inn La Quinta Inns & Suites La Valencia Hotel Lafayette Hotel & Suites The Lodge At Torrey PinesManchester Grand Hyatt San Diego Mission Valley Resort Mission Valley Travelodge Motel 6-Airport Motel 6Motel 6 Motel 6Ocean Park Inn Old Town Inn Omni San Diego Hotel Otay Mesa Comfort Suites Pacific Terrace Padre Trail Inn Palms HotelPark Manor Suites Porto Vista Hotel Premier Inn Premier Inn Sports Arena Quality / Comfort Suites Quality Inn Radisson Hotel Harbor View

Radisson Suite Hotel Ramada Inn & Suites Ramada Inn San Diego North Ramada Limited Ramada Plaza Hotel Rancho Bernardo Inn Red Lion Hanalei Hotel Residence Inn By Marriott Residence Inn By Marriott Residence Inn Kearny Mesa Residence Inn San Diego Downtown Residence Inn San Diego La JollaResidence Inn Sorrento Mesa San Diego Marriott Mission Valley San Diego Marriott Courtyard San Diego Marriott Del Mar San Diego Marriott Gaslamp Quarter San Diego Marriott Marina San Diego Old Town Courtyard San Diego Paradise Point Resort San Diego/Mv Residence Inn Se San DiegoShelter Pointe Hotel & Marina Sheraton La Jolla Hotel Sheraton San Diego Mission Valley Sheraton San Diego Hotel & Marina Sheraton Suites San Diego Sofia Hotel Sommerset Hotel SpringHill Suites by Marriott Staybridge Suites Carmel Mountain Staybridge Suites Sorrento Super 8 Motel Super 8 Motel The Friendship Hotel The Grand Del Mar The Grande Colonial Hotel The Ivy Hotel Town & Country Hotel U.S. Suites Of San Diego University Towers U.S. Grant, The Vagabond Inn Valli Hi Motel Vantaggio Suites W San Diego West Park Inn Westgate Hotel Westin Hotel Horton Plaza Woodfin Suite Hotel Sorrento Mesa Wyndham Emerald Plaza Hotel

sDtmD hotels

The formation of the SDTMD is a critical economic “win-win,” not just for the San Diego visitor industry, but for the entire City of San Diego.

Note: Properties are not duplicated - Different Locations

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market assessmentSan Diego remains a preferred destination among business and leisure travelers. In 2008, there were 31 million day and overnight visitors, and they spent more than $7.9 billion at local businesses.1 The advantages of a temperate climate, natural attractions, lifestyle activities and special events provide the perfect environment for enjoyment and discovery. These popular factors also provide a foundation upon which SDTMD can achieve its mission to improve tourism and hotel room night consumption in the City of San Diego.

The realities of the nation’s economic recession and intense competition for tourism dollars from Las Vegas, Los Angeles and Orlando, among other domestic markets, present challenges to San Diego’s tourism leadership. However, consistent and aggressive marketing efforts are underway to position the city at the forefront of traveler consciousness. Great optimism accompanied the San Diego Convention & Visitors Bureau’s (ConVis) national advertising campaign “San Diego Owns A Sunny Outlook,” which launched in April 2009 and is highlighted by the tagline “Happy Happens.” The initiative uses San Diego’s brand appeal to target the top competing markets, as well as select secondary and tertiary markets.

SDTMD’s formation and launch happened at an important time. Tourism is San Diego’s third largest industry and its ongoing health is vital to the local and regional economy. In the face of recession and increased competition, SDTMD not only supplements ConVis marketing efforts, but unique to any of California’s 38 tourism marketing districts; it also allocates funds to other local CVBs and organizations. Below are the funding percentages as outlined in the SDTMD Management Plan:

50% - Minimum assessment amount to ConVis 32% - Variable Funding by Competitive Application 10% - San Diego North CVB 5% - Opportunity/Catastrophe Reserve 3% - SDTMD and City Administration

market aSSeSSMenT Hotel Performance

Smith Travel Research estimates that by the end of 2009, the United States will suffer an 8.4 % decline in lodging occupancy.2 San Diego likely will not experience such a loss. The SDTMD is doing its part to help San Diego maintain its lodging market share and its level of occupancy against San Diego’s regional competition. As of FY2009, SDTMD hoteliers realized a 66.7% occupancy rate reflecting only a 6% decline.3 The average daily rate (ADR) was $134.76.4

More importantly, Smith Travel Research data shows that San Diego’s transient demand was flat to positive for most of FY2009 and positive during the entire summer. This was not the norm for the rest of the region; however, as with the rest of the nation, San Diego’s major room night losses were in the group business sectors due to the failing economy combined with the “AIG Effect.”5

Tourism as a Key Driver of the Economy…and City Revenue Streams

While SDTMD’s focus is to deliver benefits and ROI in many ways, by far, the most important benefit is the delivery of hotel room nights. The resulting benefits are an increased local sales tax, and direct and indirect visitor spending. Such sustained and increased momentum in the vital area of tourism also creates an environment able to sustain and even increase employment in San Diego’s tourism industry workforce of 164,000.

1 San Diego Convention & Visitors Bureau, 2009 Visitor Industry General Facts2,3 Smith Travel Research, Monthly Forecast, July 20094,5 Smith Travel Research: Custom Data for SDCVB

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sDtmD HOtels Fare BeTTer tHan nOn-sDtmD HOtels

april - auGust 2009

Estancia La Jolla Hotel & Spa

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Production of Big 3 Online Travel Agencies (OTA) Expedia, Travelocity and Orbitz April - August 2009

Total SD County SDTMD Properties

rest of County

room nights sold 2009 561,658 422,992 138,666

room nights sold 2008 483,645 334,910 148,735

YOY room nights change 16.1% 26.3% -6.8%

total revenue 2009 $ 66,706,719 $51,199,728 $ 15,506,990

total revenue 2008 $ 68,734,431 $50,308,085 $ 18,426,345

YOY revenue change -3.0% 1.8% -15.8%

San Diego Share of Western Region Market Hotel/Motel Room Nights Sold (January - August 2009 Year-To-Date)

Markets rooms night Sold Market Share2009 2009 Western

Market Share2009 vs. 2008 Market Share % Change

los angeles 15,146,724 27.4% -0.56%

anaheim 8,501,128 15.4% 0.01%

phoenix 7,576,243 13.7% 0.07%

seattle 6,037,962 10.9% 0.07%

san Diego 9,161,228 16.6% 0.17%

san francisco 8,895,703 16.1% 0.25%

Positive results for SDTMD-funded marketing and sales programs were most evident in the online travel agencies promotions. The ConVis Online Travel Agencies (OTA) programs tracked actual hotel room night production reported through the OTAs, and only the SDTMD hotels within the City of San Diego could participate in the promotion. The campaign period, April through August 2009, as tracked through Expedia, Orbitz and Travelocity, showed 422,992 SDTMD Room Nights were sold in the City of San Diego. This was a 26.3% increase from the year before resulting in a slight revenue increase of 1.8%. In comparison, non-SDTMD hotels throughout San Diego County saw a 6.8% decrease in room nights and a 15.8% decrease in room revenue.

On a regional comparison, San Diego is gaining in total hotel room night market share against traditional competitors. Smith Travel Research reports that San Diego is outpacing the percentage of total market share compared to Anaheim, Seattle, Phoenix, and Los Angeles. San Diego is second only to San Francisco, an international gateway/airline hub.

sDtmD HoTeLS

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FY2009 SDTMD roi SUMMarY (Stated rois- Final audit Feb. 2010*)

FY2009 SDTMD Funding

SDTMD HoTeL room nights

SDTMD HoTeL room nights

roi

Pending results

organization Produced revenue Produced

X to 1

conVis Base** $13,815,679 1,072,174 $155,465,172 11 :1

conVis: late summer stimulus $1,654,028 384,388 $51,873,136 31 :1

conVis: On line travel agencies pt 1

$209,774 202,558 $21,876,264 104 :1

conVis: amgen Bike $25,000 1,503 $180,360 7 :1

conVis: national cable B $3,461,180 249,902 $36,608,930 11 :1 feb. 2010

conVis: la stimulus late fY2009

$2,612,000 113,479 $16,499,007 6 :1 nov. 2009

conVis: Ota phase 2 $421,446 233,124 $27,627,525 66 :1

conVis: sDOtma $88,820 8,041 $864,285 10 :1

conVis: mDi $201,018 2,557 $380,097 2 :1

sD nOrtH cVB $2,537,054 237,159 $33,676,578 13 :1

sD film commission (crews only)

$661,817 16,892 $2,363,079 4 :1

sD film commission (crews only)

$45,939 1,200 $198,480 4 :1

sD sports commission $213,900 24,984 $3,236,883 15 :1

sD sports commission (7s) $59,383 16,000 $2,163,840 36 :1

sD sports commission (red Bull)

$125,000 10,283 $1,314,270 11 :1

sD Bowl Game association $391,138 40,481 $4,979,163 13 :1

ca state Games $15,426 14,000 $2,030,000 132 :1

ca state Games Winter $8,000 2,700 $421,080 53 :1

sD crew classic $54,648 4,566 $570,750 10 :1

accessible san Diego $95,039 3,757 $506,925 5 :1

san DieGO Downtown $20,000 10 $1,514 0 :1

elite racing $69,518 21,584 $2,758,651 40 :1

FY2009 Prelim Totals $26,785,807 2,661,342 $365,595,989 14 :1 *This table shows ROIs as reported by TMD contractors. All results are subject to third-party audit to be completed by February 2010.

**Includes FY2008 carryover

Pending

conVis/ sDccc asae sponsorship $546,500 24,344 6,009,105 11 :1 2010-2015

conVis uk. promotion $258,560 :1 2010

ca state Games fees 2011 $25,000 17,500 $2,136,350 85 :1 2011

ROI Summary 18

ConVis ROISan Diego Convention & Visitors Bureau (Base Funding) 19Online Travel Agency Campaign (10/2008-2/2009) 20Amgen Tour of California 23Spring National Cable Campaign 23LA Spring Stimulus 24Online Travel Agency – Spring FY2009- FY2010 Campaign 24Sandiego.com 25MDI – Meetings Database Institute 25Summer-Fall Stimulus Campaign 26United Kingdom Market Campaign 26ASAE & The Center for Association Leadership Annual Meeting & Expo 27

Contractors ROI San Diego North CVB 28San Diego Film Commission – Base Funding 29San Diego Film Commission – Incremental Funding 29San Diego Sports Commission (Fixed Funding) 30San Diego Sports Commission (USA Sevens Rugby) – Incremental Funding 31San Diego Sports Commission (Red Bull Air Races) – Incremental Funding 31San Diego Bowl Game Association 32California State Games 32California State Games 2011 Bid Fees 35California State Games – Winter Games 35San Diego Crew Classic 36Accessible San Diego 36San DieGO Downtown 39Elite Racing (Incremental and Annual SDTMD Funding) 40

sDtmD 2009 RetuRn on investment

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SAN DIEGO CONVENTION & VISITORS BuREAu (BASE FuNDING)

The San Diego Convention & Visitors Bureau (ConVis) is the sales and marketing engine for the San Diego region. The organization is charged with monitoring the health of the tourism industry, promoting all areas of the region and stimulating inbound travel. Despite the impact of the global economic downturn, and a rapidly changing marketplace, ConVis has been nimble and aggressive. Program of work shifts and new marketing funds from the SDTMD have helped ConVis in its efforts to win market share and tout San Diego as a diverse tourism market, appealing to leisure and group travelers, and international, domestic and drive market visitors. ConVis highlights San Diego as a preferred destination brand, known for delivering a great experience and value.

Sales Highlights:

• SalesDivisionBooked641,037DefiniteRoomNights

• ASAESpringExpoyielded144leadcards,11RFPsand1,300DRNtodate

• PCMALeadershiphostedsixclients,1leadtodatefor1,100roomnights

• MeetingIndustryLadiesAssn(MILO)heldannualmeetinginSanDiego

• AtlantaClientEventhosted36customers.Ninemembersparticipatedandtwoleadsrepresent-ing 1,000 room nights have been booked to date

• SGMPConVis’pre-showpromotion forSGMP’sannualmeeting inAprilproduced8 leads for11,918 potential room nights. To date produced 395 DFNs.

• TheAffordableMeetingsWesttookplaceinJuneandtheteammetwith100+corporateandassociation meeting organizations.

• The “Just Because” chapter in Washington, D.C., met and connected with 12 multicultural potential partners from government, corporate and association organizations.

Business Development:

ConVis’ new business development team uncovered 61 leads for the National Sales Directors, 45 of which had never met in San Diego. Total tentative room nights these leads represent are 58,419. Their fourth quarter focus was directed to the government, religious and mid-tier incentive markets.

Marketing Highlights:

• Launched“HappyHappens,”anewdestinationbrandcampaign,inFebruary2009.Thiscam-paign was anchored by a $3.5 million national cable television buy (funded through a SDTMD Incremental grant) on networks selected based on consumer passion points including travel, family focus, outdoor enthusiasts and adult indulgence.

• PublicRelations,PromotionsandCooperativeAdvertisingeffortsthroughtheendofthefiscalyeargenerated $19,146,012 in media leverage, or media value that ConVis efforts generated but did not pay. Further, all marketing efforts, including search engine and non-traditional marketing, work to generate visitor inquiries. National Public Relations generated more than $3.5 million in unpaid media coverage in the fourth quarter with feature stories in the following publications: Food & Wine, circ. 935,199; Hemispheres (United Airlines in-flight), circ. 399,333; The Los Angeles Times, circ. 1.7 million; The Orange County Register, circ. 325,003; Sunset Magazine, 1.2 million; Westways Magazine, circ. 3.7 million; Alaska Airlines Magazine, circ. 62,549; Phoenix Home & Garden, circ. 92,239; Successful Meetings, circ. 72,050, and Smart Meetings, circ. 30,262.

SAN DIEGO CONVENTION & VISITORS BuREAu (BASE FuNDING) (CONTINueD)

• ConVisevaluateditsWebpresence,sandiego.org,andlaunchedamoreaggressiveprogramtoat-tract more potential visitors. The ConVis Marketing Committee’s Web and Interactive Task Force selected a new booking engine partner and developed strategic direction statements toward creat-ing a new Web site. The social media program kicked into high gear, and the new ConVis blog was launched. Facebook and Twitter followers grew by 2,500 each during the quarter and there were 5,013 visits to the blog with 12,937 page views, which averages 2.58 pages per visit.

• ContinuedtoworktowarddevelopingtourismthroughavarietyofTravelTradeinitiativesincluding:ActiveAmerica China, “cruise3sixty” Conference, and AAA Sales Blitzes to Las Vegas and Phoenix.

• ParticipatedintheInternationalPowWowConferenceandtheCTTCAsiaSalesMission.

• Launchedseveralnewtoolsaimedatimprovingindustryforecastingandreporting,includinganewfive-year forecast with quarterly updates. Also, ROI studies and analysis are now conducted for all Incremental programs along with the Base program of work. Detailed lodging industry reporting, in collaboration with Smith Travel Research, is now reported on a weekly basis.

1) Return On Investment: BASE ONLY

FY2009 Base Funding Amount = $13,815,679

$12,918,298.00(FY2009)+$879,381.00(FY2008Carryover)

Return on Investment: ROI FY2009

Hotel Room Nights 1,072,174

x Average Daily Rate: ADR $145

Total Room Night Revenue $155,465,172

Total FY2009 Return on Investment: 11:1

2) Return On Investment: TOTAL BASE AND INCREMENTAL PROGRAMS

Consolidated Total: FY2009 ConVis Programs: Base Funding and Incremental

Total FY2009 Funding Amount: $22,488,945*





Total FY2009 Return on Investment: 14:1* Note: This total does not include separate ASAe sponsorship with SDCCC or uK Promotion. ROI results will not be calculated until end of FY2010.

San Diego Convention & Visitors Bureau (Incremental Funding)

In FY2009, ConVis submitted a total of 14 applications for funding consideration. The following pag-es contain ten applications that were approved at a total SDTMD investment of more than $9 million.

CONVIS: ONLINE TRAVEL AGENCY CAMPAIGN (10/2008-2/2009)

This campaign was created to generate year-over-year growth in room nights through advertising on two major online travel agency sites, Travelocity and Expedia.

Travelocity ran three online promotions during this timeframe:

• The“AmazingRaceSale”promotedSanDiego,offeredupto40%offanddrovetraffictoacustomSan Diego landing page.

• The“WinterSale”promotionfeaturedSanDiegoandallowedconsumerstoreceive$75offwithathree-night stay.

• The“SunshineSale”offeredupto50%offtrippackagestoSanDiego.

Tourism promotion is a valuable function for San Diego city government.

cOnVis Roi

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When’s the last time

you smiled so big

it bumped

into your ears?

Make your happy happen

at sandiego.org

San Diego Convention & Visitors Bureau

ROI

2) Return On Investment: TOTAL BASE AND INCREMENTAL PROGRAMS

Consolidated Total: FY2009 ConVis Programs: Base Funding and Incremental

Total FY2009 Funding Amount: $22,488,945*

Return on Investment: ROI

FY2009


x Average Daily Rate: ADR

$137

Total Room Night Rev-enue

$311,374,776

Total FY2009 Return on Investment:

14:1

* Note: This total does not include separate ASAe sponsorship with SDCCC or uK Promotion. ROI results will not be calculated until end of FY2010.

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CONVIS: ONLINE TRAVEL AGENCY CAMPAIGN (10/2008-2/2009) (CONTINueD)

Expedia ran four online promotions during the campaign period:

• Thefirstpromotionincludedthreeoffers:In-linegaspromotion,offering$50/$75gascardswithbooking on hotels.com; 50% off four-nights vacation packages, featuring participating San Diego hotels (promoted via geo-targeted ads, on Core Offer vacations tab, Deals page, Beach Theme Store); and sponsorship of the California on Sale promotion (includes ad takeover on promotion page, logo inclusion and geo-targeted ads).

• Thesecondpromotionfeatured30%offinSanDiegowithathree-nightstay.ItincludedFamilyStore sponsorship with geo-targeted ads and deals page origination targets.

• Thethirdpromotionwasthe“WinterSale,”whichfeatured35%offentirestayinSanDiego.In addition to these promotions, San Diego also sponsored Expedia’s themed stores such as the Beach Store and the Family Store.

• Forthefinalpromotion,SanDiegoparticipatedina$50Macy’sGiftCardpromotionwithathree-night minimum stay on Hotels.com.

Return On Investment:

FY2009 Funding Amount = $209,774


Hotel Room Nights 202,558




CONVIS: AMGEN TOuR OF CALIFORNIA

The Amgen Tour of California is a professional cycling race that took place from February 14-22, 2009 (2/21-2/22 in San Diego). The Tour expanded to include stops in 16 host cities, and among eight new stops, San Diego County was added with competitors riding from Rancho Bernardo to Es-condido. In its first three years, the Amgen Tour has become the most successful race in the United States in terms of attendance, economic benefits to the state, global recognition and the caliber of the participating cyclists. In 2008, the race continued to set records by drawing 1.6 million spec-tators. Each year, the Amgen Tour has generated $100 million in economic growth for the state.


• Achievedseveraleventsponsorshipdeliverables,includingtelevisioncoverageoftheracethroughSan Diego North County, a 30-second TV spot on the Versus Network, and a page on the official tour Web site, amgentourofcalifornia.com.

• Achievedanaverageoccupancyrateof83.8%and67.3%onSaturday,February21,andSunday,February 22, respectively (per San Diego North CVB). The combined growth for both nights attributed to the Amgen event is 1,503 room nights (of which 1,300 were part of the contracted group rooms).






Total Room Night Revenue $180,360


CONVIS: SPRING NATIONAL CABLE CAMPAIGN

The Spring national cable campaign was scheduled to leverage the State of California national ca-ble campaign running February-May 2009. The campaign was focused on promoting the new “Hap-py Happens” branding message with 30-second TV spots. Two spots rotated throughout the buy, airing 1,996 times, reaching 52% of the target market 5.2 times. Networks were selected based on travel, family and adult indulgence passion points. Networks included: ABC Family, ESPN, Fine Living, Food Network, HGTV, National Geographic, Nickelodeon, TBS, TLC, TNT, Travel Channel and Versus. Forty-nine percent (49%) of the buy ran in prime time.

CONVIS: SPRING NATIONAL CABLE CAMPAIGN (CONTINueD)


A Return on Investment study is being conducted by TNS Travel and Transport, a global market re-search agency, on the Spring National Cable. Preliminary data show that 6% of the market was aware of the ad campaign.

Return On Investment (preliminary).

FY2009 Funding Amount = $3,461,180





Total FY2009 Return on Investment: 11:1NOTe: The Spring National Cable program is still being measured by TNS using the same methodology as the LA Fall 2008 Stimulus. The awareness wave of the study is indicating an awareness level of the TV spots of 8%. The actual travel among those aware will be measured pending completion of program February 2010.

CONVIS: LA SPRING STIMuLuS

The LA Spring Stimulus Campaign was designed to stimulate hotel room nights from Los Angeles (including Riverside and San Bernardino), in the months of April, May and June. The campaign was retail-driven, with hotels offering savings of up to 30% off. Similar to the Fall Stimulus program, messaging communicated San Diego as “The Road to Happiness”. The campaign included broadcast television, traffic radio and online promotion in the Los Angeles DMA.

• Thetelevisioncomponentfocusedontargetmarketprogrammingfitduringhigh-volumefinales,premiers, specials and sporting events including, Dancing with the Stars, Lost, American Idol, and Lakers playoff games, among others.

• TrafficRadiospotswerefeaturedonabroadrangeofAMandFMstationspromoting30%offhoteldeals and specific events including the Del Mar Horse Races, SeaWorld Summer Nights and Night-time at the Zoo.

• TheonlineportionofthebuyincludedflashbanneradsonTripAdvisor,Yahoo!andKayak,amongothers. The LA online campaign generated 31,496,861 impressions and 28,347 clicks with a click-thrugh-rate of .09%


A Return on Investment study is being conducted by TNS Travel and Transport, a global market re-search agency, on the LA Spring stimulus campaign. Preliminary data show that 50% of the market was aware of the ad campaign. Actual travel will be collected to measure room nights and ROI.

Return On Investment (preliminary):

FY2009 Funding Amount = $ 2,612,000



x Average Daily Rate: ADR $145.39


Total FY2009 Return on Investment: 6:1NOTe: The LA Spring 2009 program is still being measured by TNS using the same methodology as the LA Fall 2008 Stimulus. The awareness wave of the study is indicating an awareness level in the LA market of 50%. The actual travel among those aware will be measured through the end of September with final report due mid-November 2009. estimates are based upon current trends.

CONVIS: ONLINE TRAVEL AGENCY – SPRING FY2009- FY2010 CAMPAIGN

The objective of this campaign was to protect San Diego’s share and room retention during recessionary times. The enduring tourism “share war” and “rate war” against Los Angeles, Anaheim, Phoenix, San Francisco and Las Vegas, requires ConVis to increase San Diego’s competitiveness through premier mar-keting programs negotiated with the three major OTAs - Expedia, Orbitz and Travelocity.

25 26

CONVIS: ONLINE TRAVEL AGENCY – SPRING FY2009- FY2010 CAMPAIGN (CONTINueD)


• ExpediaKeyDeliverableswere55MillionGrossImpressions

• OrbitzKeyDeliverablesweremorethan48MillionGrossImpressions

• TravelocityKeyDeliverablesweremorethan98MillionGrossImpressions

• ProductionintheOTAsinthefourthquarterwasstrongwithcounty-wideroomnightsat311,160,up 9.4% year-over-year, and SDTMD room night production at 233,124 (76.5% of the total pro-duction) up 21.5% year-over-year.







Total FY2009 Return on Investment: 66:1NOTe: This OTA program is part of a 15-month $2,000,000 program, which started in April 2009 and will conclude in June of 2010. $421,446 of the $2 million campaign was allocated in FY2009, and the results for ROI are calculated for the FY2009 allocation only.

CONVIS: DDOTMA / SANDIEGO.COM

Working with its Web site booking partner ARES, sandiego.com has created an Always Summer in San Diego campaign featuring four package types: luxury, romance, family and value. The cam-paign, which was designed to run in two phases, is being promoted through a variety of online outlets including Associated Cities Network (losangeles.com, denver.com, etc.); the ARES network of sites, search portals such as Google, and through email marketing. The online advertising cam-paign drives visitors to a dedicated microsite created by ARES, to book their vacation packages in San Diego. The campaign’s primary objective is to work in coordination with the San Diego Tourism Marketing Association, through sandiego.com, to place online advertising on strategic sites and networks in key feeder markets. This will help drive incremental room nights to San Diego.


Phase I of the campaign ran from March through May, and has generated 1,090 room nights through the Always Summer landing page on sandiego.com and an additional 6,951 room nights through the ARES network (nearly 100 local websites) for a total of 8,041 room nights, to date.








CONVIS: MDI – MEETINGS DATABASE INSTITuTE

The Meetings Database Institute (MDI) specializes in integrated data and sales solutions for the hospitality/travel industry. The company’s executives have more than 100 years of combined experi-ence in database marketing, hospitality sales/marketing and industry prospecting. MDI conducts extensive research on more than $3 billion in annual room revenue and has built an industry lead-ing database in excess of 120,000 meeting planners. More importantly, MDI tracks 30,000-plus meetings and conventions annually, representing more than 250,000 lines of historical data.


• ConVis collaboratedwithMDI to provide qualified hotel leads thatwill generate $3,250.000in definite room revenue for the SDTMD hotels. The primary focus was to stimulate additional bookings for 2009, however many of the leads will be for meetings that will actualize 2010 and beyond. This is a parallel sales effort to that of the ConVis sales team.

CONVIS: MDI – MEETINGS DATABASE INSTITuTE (CONTINueD)

• MDItappedintotheirdatabaseof30,000-plusprofiledmeetingsandwilltargetgroupsthathavemet in competitive destinations, using 25 to 2,000 rooms on peak. MDI had a dedicated team of two that prospected, researched and generated leads, Monday through Friday. MDI coordinated with the ConVis sales team and was engaged in all marketing efforts to ensure a coordinated message to the meeting planner community.

Return On Investment (preliminary):






Total FY2009 Return on Investment: 2:1NOTe: ROI is preliminary as results of leads will be updated through 2010

CONVIS: SuMMER-FALL STIMuLuS CAMPAIGN

The Summer-Fall Stimulus Campaign was designed to stimulate hotel room nights from Los Angeles (including Riverside and San Bernardino), Phoenix, Las Vegas and San Diego in the months of August, September and October. Phase I of the program ran from July 28-August 31, 2008, and included traf-fic radio and online promotion in Los Angeles, Phoenix and Las Vegas. This first phase also included a “staycation” promotion inspiring San Diego locals to take a vacation in San Diego. The “staycation” promotion ran in a Night & Day section wrap in The San Diego Union-Tribune on August 14-21 and online on signonsandiego.com from August 11-31. Phase II of the program ran September 1-October 31, 2008, and included broadcast television and online promotion in Los Angeles.


• CommissionedaReturnonInvestmentstudyfromTNSTravelandTransport,aglobalmarketresearchagency, which showed that the campaign influenced 91,536 hotel room nights from the target market and 384,000 from the Los Angeles DMA market overall between August 2008 and January 2009.

• Executedaretail-drivencampaignwithhotelsofferingdeepdiscounts,gascardsandfreenights.The out-of-market media messages touted San Diego as “The Road to Happiness,” which alludes to the “drive” element of the trip and San Diego’s equity in the idea of happiness. New creative was developed for this campaign and drove visitors to a special microsite: sandiego.org/happiness.

• In-marketmediapromotedthatthelocals“StayHappy”byvacationinginSanDiego.Thismessagealludes to the term “staycation” and again leverages San Diego’s equity in the idea of happiness. Creative for this portion of the campaign drove visitors to sandiego.org/stayhappy.








CONVIS: uNITED KINGDOM MARKET CAMPAIGN

The objective of this campaign is to generate hotel and motel room night growth from the United King-dom (UK) market over the next two years. Currently 4.5MM travelers visit the United States from the UK San Diego holds 3% of this share, estimated at 117,000 total people and 196,000 room nights. Surveys from TTG and Visit USA report that outbound travel from the UK will remain strong in 2009 with California forecast to experience the greatest growth due to recent California Travel & Tourism Commission investment in marketing.

27 28

cOntractOrs Roi

Public-private partnerships allow cities to better forecast TOT revenues

CONVIS: uNITED KINGDOM MARKET CAMPAIGN (CONTINueD)


• PhaseIofthecampaignusedpublicrelationsandsalestacticstocapitalizeontheSanDiegoChargers versus the New Orleans Saints NFL game held in London on October 26, 2008.

• TrackingforthisinitiativeisbeingprovidedbytheU.S.DepartmentofCommerce,aswellasTNSResearch. TNS conducted a benchmark study in September 2008 that showed San Diego had 5.6% awareness as a travel destination. After the Fall 2008 promotional campaign, the Spring 2009 TNS study showed San Diego increased awareness to 6.7%.

Return On Investment (PENDING):

The UK program was designed over a two-year period. Measurement of success was to achieve 2% growth in UK visitors to San Diego over a two-year period as reported by the Department of Com-merce. Final reporting will be done at the end of FY2010.



Hotel Room Nights Pending FY2010 results

x Average Daily Rate: ADR Pending FY2010 results

Total Room Night Revenue Pending FY2010 results

Total FY2009 Return on Investment: Pending FY2010 results

CONVIS/SDCC: ASAE & THE CENTER FOR ASSOCIATION LEADERSHIP ANNuAL MEETING & ExPO

The American Society of Association Executives (ASAE) is comprised of more than 22,000 associa-tion executives and industry partners. Its members manage leading trade associations, individual membership societies, and voluntary organizations across the United States and in 50 countries. The attendance for the 2008 Annual Meeting and Expo was 6,200 and was made up of more than 60% association executives.


• ShowcasedSanDiego’sdowntownrenaissancethroughaseriesofeventsincludinganexcitingOpening Reception in Embarcadero Marina Park North and a lively Gaslamp Street Party as the Final Night Gala Reception (attended by 3,200 guests).

• Securedmorethan$1.17millionincashsponsorshipsand$1.5millionofin-kindsupportfrom102 visitor sponsors.

Return On Investment (PENDING):

ASAE tracking and ROI is reported over a longer period of time. The information below only repre-sents what has been contracted in FY2009.

I. FY2008 / 2009 Funding Amount = $546,500

Return on Investment: ROI Pending

Hotel Room Nights (First Time Bookings) 24,344

x Average Daily Rate: ADR $246 (estimated)



II. FY ’09 SDCCC Production Results – Total Room Nights to Date

Attendees 92,400

Total Other Room Nights 170,420

Average Rate $246.84

Total Room Revenue $42,066,500

Total FY2009 Return on Investment: 40.8 : 1Methodology to Determine Average Rate – Incremental Room Nights from lst-time convention bookings. For three of the four bookings, peak rooms and single room rate quotes, per hotel, were utilized to calculate a weighted average daily room rate. Average daily room rate was then multiplied by total room block for each booking, to gener-ate projected total room revenue for each event. One of the four bookings has already confirmed and contracted their hotel room block. In this case, total confirmed room block of each hotel was multiplied by single room rates quoted, to come up with total room revenue per hotel. Room revenue per hotel was then added to produce total room revenue for the event. Finally, we added up room revenue for all events and divided by total room nights for all events, to produce average daily rate measured in 2009 dollars.Methodology to Determine Average Rate – Other Room Nights produced from additional citywide bookings secured. Average Rate established from detailed hotel room block quotes for the four lst-time bookings was used.

THE SAN DIEGO NORTH CONVENTION & VISITORS BuREAu

The San Diego North Convention & Visitors Bureau provides visitor information for the 2,000-square-mile San Diego North region from the coastal communities of La Jolla to Oceanside and east to the valley, mountain and desert communities of Escondido, Julian and the Anza-Borrego Desert. The CVB works closely with its members to promote San Diego North as a premier, year-round resort destination.

Sales Highlights (Q4):

• SalesDivisionbooked28,541definiteroomnights

• Conducted2clientsitetourshighlighting9members.

• HostedaSanDiegoNorthShowcasehighlighting18membersto9meetingplanners,generatingfive leads for San Diego North members to date.

• Facilitatedroomblocksformulti-hotelbookingsforGoodguysRod&CustomAssociation2010andthe National Multiple Sclerosis Society 2010.

• Conductedoutsidesalescallsto24meetingplannersinPhoenix,SanJoseandHouston.

• Generated183contactsfromattendedtradeshowsforthesalesteamfollow-up.

• Hosted6clientsattheDelMarSummerSolstice2009event.

• HostedInternetseminarsfor13localmeetingplannersand54SanDiegoNorthmembers.

Marketing Highlights (Q4):

• Developedspringmediacampaign,whichranfromMarchthroughJuneandaddressedthreecorepassion segments: family, adult indulgence and outdoor adventure. Media was focused online in the mature markets of Los Angeles, Orange County and Phoenix.

• Finalized year-long surveyofWebsite visitors conductedbyTNSResearch.SanDiegoNorth’sResults showed that 40% of Web site users visited San Diego after using the site. Of those, 57% stayed in a paid accommodation for an average of 4 nights.

• Developedmonthly“InBrief”emailcommunicationtoprovidememberswithmarketupdatesandsales and marketing opportunities to help generate business. Produced and distributed one eNews-letter (June) and one ePostcard (May), which were each distributed to more than 100,000 opt-in subscribers.

• PublicRelationseffortsincludedleveragedpaidmediathroughaggressivepublicrelationscam-paign included: hosting journalists’ site visits; organizing press trips to Washington, D.C., Los Angeles, Orange County, and Chicago; participation in the CTTC media outreach; and a variety of one-on-one media calls with journalists.




Hotel Room Nights (Group & Leisure) 237,159




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SAN DIEGO FILM COMMISSION – BASE FuNDING

The San Diego Film Commission (SDFC) is dedicated to promoting San Diego as a film-friendly region, coordinating and facilitating the permission process, and serving as a liaison with local govern-ment, the community and the production industry. SDFC continues to be supported and funded as an economic development program by the City, County and the Port of San Diego — all recognizing the increased jobs for San Diegans, priceless media exposure, and positive economic and civic impact generated from filming. Today, SDFC remains one of the most effective film commissions in the world, recognized for its services and dedication to fostering the growth of filmmaking in the San Diego region.


• SanDiegoMayorJerrySandersandFilmCommissionerCathyAndersonvisitedwithmajorstudioexecutives to directly seek their business. Mayor Sanders expressed government support for film-making and touted San Diego’s advantages as a filming destination.

• AdvertisedinthetradepublicationTheHollywoodReporter,whichfeaturedaspecial“MadeinSan Diego” edition of the magazine on February 26. This spread benefitted from timing, as only six days earlier, California had created a new state film incentive.

• Attractedandpermittedhundredsoffilmprojectsthroughtrademagazineadvertising,apostcardcampaign, the San Diego Film & Video Resource, and resources on www.sdfilm.com — including a digital location library.







Total FY2009 Return on Investment: 4:1NOTe: These rooms only represent the definite room nights used by film crews from surveys San Diego Film Commission – Incremental Funding

SAN DIEGO FILM COMMISSION – INCREMENTAL FuNDING

The San Diego Film Commission (SDFC) is dedicated to promoting San Diego as a film-friendly region, coordinating and facilitating the permission process and serving as a liaison with local gov-ernment, the community and the production industry.


• SDFCparticipatedintheAssociationofFilmCommissionersLocationsTradeShowheldinSantaMonica, California, in April 2009. Three employees met with more than 160 producers, directors and location managers and did post-show follow-up to encourage them to consider San Diego for their next project.

• SDFClaunchedanaggressivemarketingcampaignthatplacedadvertisementsinseveraltradepublications. The ads targeted industry decision makers with details about San Diego as a film-ing destination.

• Twotelevisionprojectsresultedfromthemarketingcampaignandtradeshowparticipation:Thetelevision pilot Terriers and the feature film Paul.

SAN DIEGO FILM COMMISSION – INCREMENTAL FuNDING (CONTINueD)



Return on Investment: ROI Hotel Room Nights

Average Daily Rate: ADR Total Room Night Revenue

Terriers 1,000 127.78 $127,780

Paul 200 138.50 $27,700

$43,000*

FY2009 Total Room Night Revenue

1,200 133.14 $198,480


4:1

*Includes Fees and Services

NOTe: Room nights listed for ROI only represent the definite room nights used by film crews. San Diego Sports Commission (Fixed Funding)

SAN DIEGO SPORTS COMMISSION (FIxED FuNDING)

The San Diego Sports Commission (SDSC) promotes its home region as the preferred destination for sports events and activities, and fosters economic development and quality of life through sports. The organization has upgraded its capabilities by successfully adding sports expertise from within and be-yond the region and has transitioned its focus toward becoming San Diego’s Sports Marketing Agency.


• SDSCattendedseveralsportsconferences,includingtheNCAAChampionshipCitySeminarandtheNational Association for Sports Commissions, to help promote San Diego as an event destination.

• SDSCsupportedseverallocal,majorevents,whichwerefeaturedonnationalandinternation-al television, including: JCC Maccabi Games, Foot Locker Cross Country Championships, USA Sevens Rugby, World Baseball Classic, Red Bull Air Race and the NCAA Women’s Basketball Tournament (First and Second Rounds), USA Judo Senior National Championships, WCC Tennis Championships, WCC Meeting.

• WorkedtoearnSanDiegoadesignationasoneofsixNCAAChampionshipCities,andtheonlyone west of the Mississippi. As a Championship City, San Diego would have first rights to host future NCAA Championship events, which can further the city’s image as a destination for tour-ists and events, build up community support, and achieve NCAA brand equity.

Return On Investment







NOTe: These rooms only represent the team-used room nights and do not include the attending / visiting fans.

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SAN DIEGO SPORTS COMMISSION (uSA SEVENS RuGBY) – INCREMENTAL FuNDING

The San Diego Sports Commission, in collaboration with Nuffer, Smith, Tucker, and USA Sevens, L.L.C., presented an incremental request to SDTMD to support the 2009 USA Sevens Rugby event and to facilitate in building San Diego’s presence as “the” U.S. rugby destination. The USA Sev-ens Rugby Tournament was an exceptional international event that combined culture, sports and entertainment. Rugby Week in San Diego provided an exciting environment for all demographics. It was the largest rugby event in North America and the only major international team sporting event on the West Coast.


• Securedtelevisionbroadcastworldwidetonearly130countriesandsixcontinents,withareachof nearly 667 million households. Domestically, USA Sevens achieved a milestone with its first national network broadcast on ABC Sports.

• Engagedapublicrelationfirmandasportsmediafirmtoincreaseoutreachtomultipletargetmarkets. This resulted in a 30% increase in out-of-town attendance from 2008 to 2009.

• ForgedmediapartnershipswithXXSportsRadio,TheSanDiegoUnion-Tribune,andCoxChannel4.


FY2009 Funding Amount =$59,383






SAN DIEGO SPORTS COMMISSION (RED BuLL AIR RACES) – INCREMENTAL FuNDING

The San Diego Sports Commission completed its third year serving as the local organizing commit-tee for the Red Bull Air Races. Fifteen of the world’s best pilots ventured from the heart of the city to the open countryside, and over land or water, ensuring that every stop of this two-day event had a unique feel. Spectacular San Diego backdrops and jaw-dropping action guaranteed that spectators experienced one of the most innovative and exciting new sports competitions.


• SDTMDfundingallowedforgreaterfinancialflexibilityandincreasedadvertisingandpromotionto Tier 2 markets, including Orange County, Los Angeles, Las Vegas, and Phoenix, among others.

• ExpandedInternetprogrammingatsocialmediaandotheronlineoutletsandachievedmorethan21 million impressions.

• Achievedhigh-profilerecognitiononESPNSportCenter’s“Top10Plays.”


San Diego Sports Commission (Red Bull Air Races) – Incremental Funding







SAN DIEGO BOWL GAME ASSOCIATION

The San Diego Bowl Game Association produces the Holiday Bowl (sponsored by Pacific Life), a college football game that since 1978, has been played every December at San Diego’s Qualcomm Stadium. The 31st annual edition featured the Oregon Ducks and the Oklahoma State Cowboys. In addition to the influx of room nights from the fans of the participating teams during the “off peak” season, the game, featuring San Diego’s sunny winter weather, was nationally televised by ESPN and was the third most-watched bowl game on the network’s entire schedule.

Marketing Highlights

• TheHolidayBowlworkedcloselywiththeparticipatingschoolstomaximizepromotionofthe11,000 game tickets they are required to sell.

• Duringthetelecast,alongwithvariousmentionsofSanDiegobytheon-airtalent,thenetworkfeatured several San Diego “beauty shots” to the 4.5 million plus household viewers, showcasing San Diego as a “destination city”, which reinforced San Diego’s overall branding efforts.







Total FY2009 Return on Investment: 13:1NOTe: FY2009 Funding was for the Holiday Bowl only.

CALIFORNIA STATE GAMES

The 2008 California State Games hosted 10,891 athletes competing in 20 sports from July 10-13. These athletes came from all over the state to compete in this premier amateur event and vie for the Gold, Silver and Bronze medals. The sports venues were located throughout San Diego, while the Opening Ceremonies (hosting an estimated 30,000 attendees) were held at Qualcomm Stadium. The California State Games is the only statewide Olympic Style event held each year. It has become a very prestigious event on many coaches’ calendars. Since it is a youth event, it appeals to athletes and their families, of which many take a family vacation in conjunction with the Games.


• TheGamesuseditsWebsitetopromotehotelsthatwereproximatetothevarioussportsvenues.This provided convenience for the athletes and spread hotel reservations throughout the Assess-ment District.

• TheGamesusedin-housestaffandaninternfromSanDiegoState’sHospitalityandTourismManagement program to reserve and block rooms, which enabled close, productive relationships with various hotels.







Total FY2009 Return on Investment: 132:1NOTe: Though rooms were booked county-wide, the rooms used for the ROI calculations only represent the SDTMD hotels.

33 34

San Diego Bowl Game Association

ROI

Return on Investment: ROI

FY2009

Hotel Room Nights

40,481

x Average Daily Rate: ADR

$123.00

Total Room Night Revenue

$4,979,163.00

Total FY2009 Re-turn on Investment:

13:1

Presented by

®



35 36

CALIFORNIA STATE GAMES 2011 BID FEES

The State Games of America (SGA) is the National Championships for all State Games athletes. It is held every two years in various locations around the country. California State Games bid on host-ing the 2011 SGA with the support of ConVis and the Hall of Champions earlier in the year. After several presentations and a site visit by the National Congress of State Games Board, the 2011 SGA was awarded to San Diego. This national Olympic-style sports festival features some of the top athletes in the country. The 2011 SGA will host more than 16,000 athletes competing in 23 sports, and vying for the Gold, Silver and Bronze medals.

California State Games finalized the contract and a bid fee of $50,000 was due with the signed con-tract. They received this $25,000 from the SDTMD and were able to raise an additional $25,000 to secure the event and the room nights for 2011. They conservatively estimate that the 2011 State Games of America will generate at least 35,000 total hotel room nights. With the $25,000 SDTPC funding received and the current average room rate of $122.08, the projected housing revenue at-tributed to the SDTMD is more than $2.1 million (more than $4 million total).

As an added note, the California State Games added to the 2011 SGA contract the following line item: “1.9 Host City on a rotation basis. If San Diego meets or exceeds the expectations of NCSG as host of the 2011 SGA, San Diego will be considered as a host on a regular basis every 2-4 years the event is hosted.”


• TheStateGamesofAmericaSGAisanationalevent,andguaranteesthatathletes,teamsandtheir families will be traveling from all parts of the country to come to San Diego. Many families will take vacations in conjunction with the Games.

• TheformatoftheSGAcomparedtoCaliforniaStateGamesisexpandedtoafive-dayevent.Po-tentially, this will increase hotel stays by an extra day.

• TheGameswilluseitsWebsitetopromotehotelsthatareproximatetothevarioussportsvenues.This provides convenience for the athletes and spread hotel reservations throughout the Assess-ment District.

Return On Investment (Pending Estimate for FY2011):


Pending FY2010 results

Return on Investment: ROI Pending




Full ROI Pending FY2010 results


CALIFORNIA STATE GAMES – WINTER GAMES

The California State Games hosted the 2009 California Winter Games in February. Ice hockey and figure skating were the two featured sports, and athletes came from all over the western states to compete for the Gold, Silver and Bronze medals. This premier, four-day amateur event attracted 1,398 athletes to San Diego, as part of 64 ice hockey teams from Southern California, Northern California, Arizona, Utah, Texas and Colorado. The tournament also attracted 293 figure skaters, who participated in a two-day competition. These numbers exceeded the target of 1,400 athletes for the 2009 California Winter Games.


• EstablishedaMandatoryHotelBookingpolicyforicehockeyteams.Hotelroomblockswerese-cured, and before teams were accepted to play, they were required to book hotel accommodations at a host hotel.

• Hotelroomblockswerehandledin-house,andteamswereassistedinsecuringhotelroomsneartheir rinks. The Games contracted with a variety of hotels in the Mission Valley, UTC area, Mira Mesa and Rancho Bernardo area.

CALIFORNIA STATE GAMES - WINTER GAMES (CONTINueD)







Total FY2009 Return on Investment: 53:1NOTe: Though rooms were booked county-wide, the rooms used for the ROI calculations only represent the San Diego City SDTMD hotels.

SAN DIEGO CREW CLASSIC

The mission of the San Diego Crew Classic is to produce the premier rowing regatta in the United States, while promoting the highest ideals of amateur athletics and hosting an event that is a source of pride of the citizens of San Diego. In 2008, the Crew Classic attracted several powerhouse col-legiate teams such as Harvard, the University of Washington, and University of California-Berkeley, among others. This greatest field ever assembled in the regatta’s history, translated into successes on every level, including an increase in room nights among hotel partners.


• WiththeSDTMDfunding,CrewClassicwasabletoproduce,forthefirsttime,anhour-longvideo,which aired seven times on ESPNU, a collegiate sport network available in 50 million homes. The program showcased not only the races, but the City of San Diego. The Crew Classic received a percentage of commercial time, which it filled with commercials from ConVis and other local entities.

• Conductedasurveyduringtheregatta,whichyieldedapproximately500respondents.Theobjec-tive of Crew Classic organizers was twofold: 1) to learn more about its constituents’ (competitors and spectators) travel needs, and 2) to use the resulting data to increase room nights and accom-modate more spectators.

• DevelopedplanstobuildaWebsitethataccommodatesmorefunctionality,includinghotellist-ings and a section featuring various “packages” being offered in 2010.








ACCESSIBLE SAN DIEGO

Accessible San Diego (ASD) is a nonprofit information and resource center for travelers and locals with disabilities. The organization provides detailed information on accessible hotels, restaurants, attractions and transportation via its Web site, ASD Information Center, San Diego Guide publica-tion, and telephone hotline. ASD promotes local tourism at consumer and trade shows to the un-tapped market of people with disabilities and generates increased hotel room nights and revenue. Additionally, ASD performs ADA consultation for major events, hotels and attractions.

37 38

San Diego Crew Classic Return On Investment:





Total Room Night Revenue

$570,750


10:1

39 40

ACCESSIBLE SAN DIEGO (CONTINueD)


• Printedanddistributed15,000AccessSanDiegoGuide2009,amarketingand informationpublication that is the touchstone among travelers with disabilities choosing to visit San Diego.

• ExhibitedattheAbilitiesExpo,oneofthelargestdisabilityconsumershowsinthenation,(6,500attendees). The Access San Diego Guide was well-received by individual attendees as well as vendors and organizations. ASD’s promotion at this show opened the door for San Diego to host the Abilities Expo in 2011.

• PromotedeffortstobringCSUNInternationalConferenceonTechnology&PersonswithDisabili-ties to San Diego in March 2010, for the first time after being held in Los Angeles for 20-plus years. It is expected to bring approximately 5,000 attendees to the Manchester Grand Hyatt (1,500-2,000 rooms blocked during the event).








SAN DIEGO DOWNTOWN

San DieGO Downtown is a private/public partnership campaign to acquaint the world with the at-tractions of Downtown San Diego and its Gaslamp Quarter. A campaign propelled by financial and in-kind contributions, the program employs an e-business and destination marketing initiative, aug-mented by publicity, site promotions and select traditional print ads. The campaign was designed to advance awareness and patronization of the multitude of “Play” attractions that make Downtown San Diego one of the nation’s most vibrant and enjoyable urban centers.


• Draftedanddistributedpressreleaseaboutlaunchof“TimetoSpring-Diego”campaigntocom-prehensivemediadatabase;pickedupbyMSNBC,Yahoo!,TravelsJournal,HospitalityIndustry,Travel Video, CNET, AOL Money.

• Draftedanddistributedfournewsletters:SanDieGODowntownlaunchesTimetoSpring-Diego,San DieGO Downtown Spring Savings, Last Chance for San DieGO Downtown’s Spring Savings, and One Day Left for San Diego Downtown Spring Savings.

• PerformedWebsitecontentupdatesandwroteTravelBlog(http://sdgodowntown.blogspot.com/)with daily posts.




Hotel Room Nights 10



Total FY2009 Return on Investment: 0:1NOTe: Only rooms that were booked directly through AReS from the promotion were tracked by the contractor. An advertising effectiveness / awar ness study had not been commissioned due to the low funding level.

ELITE RACING - INCREMENTAL AND ANNuAL SDTMD FuNDING

Elite Racing is the organizer of the annual Rock ‘n’ Roll Marathon, which aims to be one of the world’s premier running events and serves as a magnet to draw out-of-area visitors to San Diego. The event draws a minimum of 20,000 entrants of which more than 70% are from outside San Diego County. This translates into producing not only San Diego’s largest marathon, but also a regionally significant event for participation, tourism, economic impact, national publicity and charitable fundraising through sponsored runners.


• Increased national direct mail campaign to more than 85,000 unique residential addressesoutside of California. The list was purchased from a timing company and comprised of a fitness-oriented demographic.

• Purchasedafull-page,full-coloradintheFebruaryissueofRunner’sWorldmagazine.Runner’sWorld is a subscription-based publication with a national circulation of 610,000. Nearly 5% of the 17,502 participants polled learned about the race from a Runner’s World advertisement.

• Printedanadditional65,000entrycoupons thatwere inserted inanextendednational racegoodie bag campaign. SDTMD funding allowed the race to expand the goodie bag program which accounts for 3% of race entries (from the 17,502 participants polled).








conVis Base funDinG: $11,159,822.00

conVis incremental: Ota $1,555,000.00

conVis incremental: 2010 natiOnal caBle $3,050,000.00

conVis incremental: 2010 la-sprinG summer stimulus $1,100,000.00

conVis: restaurant Week $50,000.00

conVis: fY2010 fall stimulus $1,000,000.00

conVis/sDccc : nBta $150,000.00

sD nOrtH cVB $2,231,964.40

sD film commission $655,200.00

sD sports commission ( Base) $382,500.00

sD Bowl Game: HB and pB $450,000.00

ca state Games $50,000.00

sD crew classic $135,000.00

accessible sD $67,500.00

sD natural History museum $135,000.00

sD Bay Wine and food festival $45,000.00

mccsn: multicultural fam tour $88,200.00

the Old Globe $21,967.20

Beer Week $22,320.00

accessible sD $27,000.00

2015 Bp: sDtpc $50,000.00

41 42

C. Terry Brown, Chairman President, Atlas Hotels

Richard Bartell, Vice Chairman President, Bartell Hotels

Ray Warren, TreasurerGeneral Manager San Diego Marriott Hotel and Marina

Luis Barrios, SecretaryGeneral Manager Best Western Hacienda Hotel Old Town

Patrick DuffyGeneral Manager Hilton La Jolla Torrey Pines

William L. Evans, Chairman Marketing Advisory Comittee (M.A.C.)Vice President and Managing Director of Hotel Operations, Evans Hotels

Mohsen KhaleghiGeneral Manager, Hyatt Regency Mission Bay Spa and Marina

Robert A. Rauch, CHAGeneral Manager/Partner, Hilton Garden Inn-San Diego/Del Mar

Keri A. RobinsonArea Managing Director, Starwood Hotels & Resorts – San Diego Sheraton San Diego Hotel & Marina

Lorin Stewart Executive Director

BOarD Of DireCTorS Be Our GuestcOntractOrs anD funDinG For FY2010

sdtmd.oRg 8880 riO san DieGO DriVe, suite 800 | san DieGO, ca 92108 | (619) 209-6108

© 2009 san DieGO tOurism prOmOtiOn cOrpOratiOn

Design & artwork Donated by mJe marketing services

be our guest - san diego tourism marketing district · 2017-03-22 · 1 2 the creation of the san...

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