fcvb 2010 annual report

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2010 ANNUAL REPORT

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Fairbanks Convention & Visitors Bureau • 2010 Annual Report


2010 FCVB ANNUAL REPORT HIGHLIGHTS After a challenging year in 2009, the Fairbanks Convention & Visitors Bureau (FCVB) was heartened by sev-eral achievements in 2010. Although not near peak levels of 2008, FCVB did see some increases. Here are a few highlights from the past year:

After six years of FCVB working in conjunction with the Fairbanks International Airport to secure a low-cost domestic air carrier to service Fairbanks, Frontier Airlines flew an Airbus A139 aircraft accommodating 124 passengers between Denver and Fairbanks four days a week beginning May 14 through September 11.

Greeted and provided customer service to 100,907 visitors at the Morris Thompson Cultural & Visitors Center, a 57 percent increase over 2009.

Coordinated the Fairbanks community’s preparations for and the execution of the First Alaskans Institute Elders and Youth Conference and the Alaska Federation of Natives Convention held in Fairbanks during the week of October 17, 2010.

The www.explorefairbanks.com website hosted 149,152 unique visitors.

Inquiries were up 15 percent over 2009.

The total number of flights from Japan Airlines was halved compared to the previous winter but the number of arriving passengers was only down by 30 percent with a total of 2,888 Japanese visitors to Fairbanks via the charter flights.

Condor continued to fly to Fairbanks during the summer with a schedule for their Frankfurt-Whitehorse-Fairbanks flight from May through September operating 18 flights, one less than in 2009. The average number of passengers arriving to Fairbanks this summer was the highest so far, up five percent from 2009 and average departures were up by an unprecedented 18 percent.

Hosted 25 press tours for media.

Increased year-round Golden Heart Greeter volunteers from 40 to 55.

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POINTS OF INTEREST: BOARD OF DIRECTORS 2 LETTER FROM BOARD CHAIR 2 COMMITTEES 3 LETTERS FROM LOCAL MAYORS 4

BED TAX RECEIPTS 5 DEPARTMENTS 7 FINANCIALS 17 2010 SCRAPBOOK 20


2010 FCVB BOARD OF DIRECTORS

MESSAGE FROM THE 2010 BOARD CHAIR Anyone who builds a home, business, or career will tell you that a good foundation is the key to keeping a pro-ject upright and strong. FCVB is fortunate through its leadership, staff, membership and board to have such a

sturdy foundation. When hard times hit the economy in 2009 and 2010, the FCVB was able to stand solid against the storm. Two things were es-sential. The first was keeping an eye on the budget and make adjustments accordingly while planning for the future. The second was to believe the US economy would recover and to be prepared to move forward once the recovery began.

Like most Alaska tourism businesses, FCVB had to make do with less in the past two years. As positions were vacated the remaining staff picked up and covered many of the job duties formerly handled by paid employees. Examples of this effort in 2010 were to greet and provide customer serve to 100,907 visitors to the Morris Thompson Cultural & Visitors Center. This number represents a fifty-seven percent increase over 2009. Inquiries to FCVB from future visitors was up fifteen percent over 2009 which meant more time talking about Fairbanks and processing mail requests.

2010 was Fairbanks’ turn to host the First Alaskans Institute Elders and Youth Conference and the Alaska Federation of Natives Convention. It ap-peared an effortless job for those looking from the outside in when, in fact, it was an extraordinary amount of work performed by a very small group of people. The increase in the number of Golden Heart Greeters from 40 to 55 was appreciated.

Though FCVB seems to have weathered the storm of economic decline, we must be vigil in continuing to build and support Fairbanks tourism. While direct flight service to Fairbanks from Denver, Frankfurt, and Japan added to our success in 2010, world events and economic drivers are still at play. 2011 and 2012 will continue to require everyone’s attention as flight ser-vice by Condor and Japan Airlines declines and the competition from other destinations, in and out of Alaska, vie for visitor dollars.

Fairbanks destination marketing by FCVB is the base of the foundation that holds and supports us. All of us must take an active part in seeing that our community continues to be represented in a positive way by welcoming and assisting potential tourists. Please be assured that sitting on the board or a committee is a rewarding and informative experience so please get involved.

I use the eloquent words of our 2009 Board Chair, Andy Anger, “thank you FCVB staff for your tireless efforts, FCVB members for continuous based support, and fellow board members for direction and input in guiding the FCVB for the benefit of our community and tourism industry.”

Sincerely, Mary Richards 2010 Chair, FCVB Board of Directors

EXECUTIVE OFFICERS

Mary Richards, Chair All Seasons Bed & Breakfast Inn

Suzy Fischer, Chair Elect Riverboat Discovery & El Dorado Gold Mine

Matt Atkinson, Treasurer Northern Alaska Tour Company

Buzzy Chiu, Secretary Bridgewater Hotel

Andy Anger, Past Chair University of Alaska Fairbanks Community and Technical College

Deb Hickok, President & CEO Fairbanks Convention & Visitors Bureau

BOARD MEMBERS

Amy Geiger Downtown Association of Fairbanks

Irene Fuchs Meyer GoNorth Alaska Travel Center

Shelbie Umphenour Interior Alaska Fish Processors

Ramona Oxendine Santa’s-Vagabond Travel

Michael Davis Denali ATV Adventures

Adam Barth Gray Line of Alaska

Kristin Wells Denali Princess Wilderness Lodge

Terese Kaptur Fairbanks Summer Arts Festival

Susan Kramer Executive Events

Lloyd Huskey University of Alaska Museum of the North

Joseph Blanchard (Ex Officio) FNSB Representative

Emily Bratcher (Ex Officio) Fairbanks City Council Representative

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2010 FCVB COMMITTEES ADVERTISING & PUBLIC RELATIONS COMMITTEE Amy Geiger, Chair, Downtown Association

of Fairbanks Deanna Brandon, Fountainhead Hotels Carter Crawford, Crawford Communications Kerynn Fisher, University of Alaska Museum

of the North Christina Kraft, First National Bank Alaska Jill Marshall, Marshall Arts Design Shelbie Umphenour, Interior Alaska Fish Processors TOURISM COMMITTEE Kristin Wells, Chair, Denali Princess

Wilderness Lodge Andy Anger, UAF Tanana Valley Campus Buzzy Chiu, Fountainhead Hotels Mike Davis, Denali ATV Adventures Kory Eberhardt, A Taste of Alaska Lodge Irene Fuchs Meyer, GoNorth Alaska Travel Center Tim Holmes, Holland America Line Lise-Marie Monroe, Holland America Line MEETINGS & CONVENTIONS COMMITTEE Mark Clark, Chair, Holiday Inn Express Dustin Adams, Regency Fairbanks Hotel Berta Amico, Fairbanks Springhill Suites by Marriott Denise Ferree, Chena Hot Springs Resort Deborah Hansen, Pike’s Waterfront Lodge Becky Kunkle, Fountainhead Hotels Scott Covington, Westmark Hotel &

Conference Center Helen Renfrew, Fairbanks Princess Riverside Lodge Diane Shoemaker, Fountainhead Hotels Yvonne Temple, Alpine Lodge Rita Valentine, Avis Rent A Car Patty Weaver, Pike’s Waterfront Lodge Vivian Bubbel, The Pump House Restaurant

and Saloon Kalinka Guffens, River’s Edge Resort Matt Tonnies, Silver Gulch Brewing & Bottling Co. Karren Pearson, Fairbanks Springhill Suites

by Marriott

VISITOR SERVICES & MEMBERSHIP COMMITTEE Ramona Oxendine, Chair, Santa’s-Vagabond Travel Jason Avery, Pioneer Park Alison Short, Holland America Princess

Alaska Tours Irene Fuchs Meyer, GoNorth Alaska Travel Center Rebecca Morse, If Only...a fine store FINANCE & PLANNING COMMITTEE Mary Richards, Chair, All Seasons Bed & Breakfast Inn Suzy Fischer, Riverboat Discovery & El Dorado Gold Mine Andy Anger, UAF Tanana Valley Campus Matt Atkinson, Northern Alaska Tour Company Buzzy Chiu, Fountainhead Hotels Amy Geiger, Downtown Association

of Fairbanks Kristin Wells, Denali Princess Wilderness Lodge Mark Clark, Holiday Inn Express Ramona Oxendine, Santa’s-Vagabond Travel Lloyd Huskey, University of Alaska Museum of the North AUDIT COMMITTEE Lloyd Huskey, Chair, University of Alaska Museum

of the North Matt Divens, Holland America/Princess Tours Jennifer Imus, Wells Fargo Christina Jensen Kraft, First National Bank Alaska Jake Slingsby, Key Bank PUBLIC POLICY ADVISORY COMMITTEE Andy Anger, Chair, University of Alaska Fairbanks

Community and Technical College

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LOCAL MAYORS

Our community is fortunate to have the Fairbanks Convention and Visitors Bureau working to keep our tourism and convention industry vital and flourishing. 2010 was a notable year for FCVB, as evidenced by the increase in visitors over 2009, regardless of the continued economic woes facing world economies.

Effervescent FCVB staff members and volunteers are at every community event and venue in Fairbanks; not only is the steady increase of winter visitors and significant upturn in tourism a result of their outreach, but community participation in events is in large part due to the efforts of FCVB. Congratulations on the positive and tangible results this agency has harvested.

Jerry Cleworth , Mayor City of Fairbanks

CITY OF FAIRBANKS

I appreciate the Fairbanks Convention & Visitors Bureau for your ongoing successful marketing efforts that bring international, national and Alaska visitors to the interior. Working with the FCVB helps the City of North Pole generate more tourist traffic which is great for local businesses and our overall economy. Tourism creates employ-ment opportunities, encourages entrepreneurism and also enhances our quality of life by allowing our local residents to enjoy those activities, events and businesses that were created primarily for those visiting our great state.

Although the economy was still tough in 2010 there were signs of revival and that makes me hopeful for the coming year. Thank you FCVB!

Douglas W. Isaacson, Mayor City of North Pole

CITY OF NORTH POLE

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FAIRBANKS NORTH STAR BOROUGH Fairbanks Convention and Visitors Bureau’s continued successful efforts to market Fairbanks and the interior has helped stabilize our local economy from the effects of national economic trends. The tourism and convention sector of our local economy creates significant opportunities for all our citizens. The community investments in FCVB are funds appropriately spent in continuing to attract visitors and business to our community each year.

Congratulations on another year of hard work that brings great results to us. Thank you for your vision, achievement and professionalism.

Luke Hopkins, Mayor Fairbanks North Star Borough


2010 BED TAX RECEIPTS

B ed tax is a reflection of the variables of occupancy and room rates. Regarding overall bed tax collections in 2010, there was a 9.4 percent increase over 2009 but collections have not yet returned to peak levels of

2008. In 2008 and 2009, the effects of the global recession were felt on the tourism industry. In 2009, the hotel/motel tax collections for the City of Fairbanks declined 14 percent from the same period in 2008; and the Fair-banks North Star Borough collections also declined by about 14 percent (-13.9%). When factoring in bed tax received from the City of North Pole, bed tax declined a total of 13 percent (-13.14%).

The chart below shows the overall bed tax figures:

In 2010, the hotel/motel tax collections for the City of Fairbanks, increased by 6.5 percent in comparison to 2009; Fairbanks North Star Borough (FNSB) collections (properties outside of the City) were up 11 percent. 2010 was the first full year of hotel/motel tax collections for the City of North Pole so there is no previous year com-parison. When comparing August through December 2009 verses August through December 2010 there was a 30 percent increase. While the combined total for City of Fairbanks, FNSB and City of North Pole was a 9.4 per-cent increase over 2009 it is still a 5.2 percent decrease from the 2008 levels.

Regarding summer (May through September) in 2010, bed tax increased by 12 percent from the same period in 2009. 2010 figures are comparable to 2006 levels. Summer 2009 suffered a combined total of an 18 percent decline from the same period in 2008, primarily reflecting the deployment of cruise ships from the Gulf of Alaska from which cruise land tours to Fairbanks and Interior Alaska emanate. The recession combined with a seven percent increase of year-round hotel inventory in the Fairbanks area contributed to the 2009 decline.

Regarding winter (January through April and October through December), we have seen a slight but steady increase in the hotel/motel tax collections for the winter period the last several years. Since 2006 we have had a 13.8 percent increase in our winter period.

Source: Compilation of figures by FCVB from figures provided by the City of Fairbanks, Fairbanks North Star Borough and the City of North Pole.

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2010 BED TAX RECEIPTS (CONTINUED)

In 2009, the winter period was 30 percent of the overall hotel/motel tax collection for the year. While 2010 saw a drop in the winter period to 27 percent, it was still a dollar figure increase over the previous years as seen in the actual numbers below:

The outlook for 2011 visitor numbers is a slight increase from 2010 but predicted to not yet return to 2008 lev-els. According to AlaskaACT in a September 27, 2010 enews, the expected 2011 changes to the Alaska cruise market will be a net increase 11,518 passengers, primarily in Inside Passage cruises which do not lead to cruise land tours to Fairbanks.

Anecdotally, pent-up demand may have led to an increase in independent and international travel in 2010. However, it is yet to be seen if consumer confidence will boost enough to result in comparable increases in 2011. 2011 numbers will not reach the peak of 2008.

[PLEASE NOTE: For a more comprehensive analysis, please refer to the “Strategic Analysis” section of the 2011 FCVB Strategic Marketing Plan and Budget.]

2006 2007 2008 2009 2010

Summer 76% $3,167,443 74% $3,316,980 74% $3,393,909 70% $2,791,395 73% $3,151,673 Winter 24% $1,023,224 26% $1,172,429 26% $1,171,806 30% $1,174,265 27% $1,186,687 Total 100% $4,190,667 100% $4,489,409 100% $4,565,715 100% $3,965,660 100% $4,338,360

Source: Compilation of figures by FCVB from figures provided by the City of Fairbanks, Fairbanks North Star Borough and the City of North Pole.

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ADMINISTRATION DEPARTMENT

T he Administration Department manages the Bureau’s strategic

planning and marketing functions, budgets and finances, contract management, purchasing, building and facilities, human resources, personnel policies and procedures, staff development and training, special projects, and represents the Bureau to the community. The Ad-ministration Department facilitates an efficient, effective working envi-ronment and provides administra-tive and technical support to the entire organization. Administra-tion directs and manages the day-to-day financial, accounting and purchasing functions of the Bu-reau, receivables, payables, reve-nues and expenses.

DEPARTMENT STAFF Deb Hickok

President and CEO Cathi Wojtanek,

now Dawn Murphy Director of Finance & Administration

Corinne Jankowski Data Entry and

Accounting Coordinator Janet Thorpe

Finance and Administrative Coordinator

Ashley Ritenour Executive and Tourism Coordinator

The inaugural Frontier Airlines flight to Fairbanks is welcomed with a celebratory shower by airport emergency vehicles.

W O R K I N G T O S E C U R E A B E T T E R F A I R B A N K S For the past six years, FCVB, in conjunction with the Fairbanks Inter-national Airport, has been working on a low-cost domestic air carrier to service Fairbanks. As a result of this effort, Frontier Airlines flew an Airbus A139 aircraft accommodating 124 passengers between Den-ver and Fairbanks beginning May 14 through September 11, offering 5½-hour service on Monday, Wednesday, Friday and Saturday. Frontier offers routes to 60 destinations in the US, Mexico and Costa Rica. Additionally, Frontier and Midwest have a codeshare partner-ship that allows passengers of both airlines access to more than 70 destinations in the US, Mexico and Costa Rica. Frontier routes south and east offer the most efficient travel to and from Fairbanks. Frontier is including Fairbanks in its summer 2011 schedule with an additional flight mid-summer. The airline has relayed both surprise and pleasure at how successful their first season was in Fairbanks. Important to note is that federal monies for underserved small com-munities combined with a FCVB-sponsored community match were available to subsidize the flight in the event that it did not reach ade-quate revenues. Due to the success of the 2010 summer season, risk abatement monies were not expended to subsidize Frontier’s inau-gural summer. The grant has been extended to summer 2011.

The draft of the FCVB-commissioned feasibility study for a convention cen-ter and/or performing arts center(s) has been received from the consultant Convention, Sports & Leisure. The FCVB and Fairbanks Arts Association are now consolidating their review comments to be submitted to the con-sultant. The final study is to be re-leased in 2011.

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ADMINISTRATION DEPARTMENT (CONTINUED) MONITORING FISCAL SOLVENCY The Audit Committee, Director and Coordinator of Finance and Administration continued to work together to provide accurate and useful financial reporting. The Director and Coordinator are mastering the accounting software to produce more sophisticated and streamlined reporting and budget monitoring methods. In con-junction with the FCVB Management Team, the Director and Visitor Services and Membership Manager com-pleted a comprehensive update of the Employee Manual. PROVIDING LEADERSHIP AND COMMUNITY SUPPORT The President and CEO served as Vice Chair of the Board of Directors of the Alaska Travel Industry Association and became Chair in October 2010. She also served as Chair of the ATIA Community Relations Committee. The President and CEO is also serving on the Board of the National Council for Destination Organizations, a council of the Washington, DC-based United States Travel Association. She is also currently a Board member of Adven-ture Green Alaska, a statewide certification recognizing efforts toward environmental and cultural sustainabil-ity in tourism businesses. She also serves on the Board of the Morris Thompson Cultural and Visitors Center and several local committee and advisory groups.

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ADVERTISING AND PUBLIC RELATIONS DEPARTMENT AGGRESSIVE MEDIA RELATIONS PRODUCE RESULTS The FCVB facilitated 25 press tours representing international and domestic magazine, newspaper, web, radio and television sources in 2010. According to Cision Media Monitoring Services, FCVB press re-leases and media relations/press tours resulted in 145 articles featuring Fairbanks in domestic magazines and

newspapers with a total circulation of 20,932,475. ONE-ON-ONE SALES APPOINTMENTS PROVIDE VALUABLE CONTACTS Follow-up and/or action occurred as a result of participation in direct face-to-face networking opportunities with Outdoor Writers Associa-tion of America (OWAA), Northwest Outdoor Writers Association (NOWA) and Alaska Media Road Show. ONLINE PRESENCE ESSENTIAL TO MARKETING The www.explorefairbanks.com website hosted 149,152 unique visi-tors and had 899,852 total page views in 2010 . In addition, the FCVB hosted and maintained a website for AFN which received 13,755 page views and 6,288 site visitors, and created a Solstice page for a related TV campaign that resulted in 758 unique page views. FCVB Twitter followers increased to over 1,700 and Fairbanks links posted on Twitter were clicked an average of 577 times per month. The department continued to work with Louder Design on website usability and functionality and started a pay-per-click advertising pro-gram through a contract with Apokrisis, LLC. DOMESTIC ADVERTISING PLACEMENTS REACH CONSUMERS Successful placement and execution of key domestic advertising and direct mail programs resulted in a 15 percent increase in inquiries over 2009.

T he Advertising and Public R e l a t i o n s D e p a r t m e n t

executes a proactive, year-round public relations program to ensure ongoing, positive coverage of Fairbanks as a visitor destination.

We sell Fairbanks aggressively to all target markets—domestic, international and in-state. In everything we do, we want to generate increased inquiries from independent travelers. We continually refine our programs to maximize editorial in all mediums and to evaluate based on research.

DEPARTMENT STAFF Karen Lundquist

Vice President of Marketing Vacant

Public Relations Coordinator Kasey Gillam

Advertising and Marketing Associate

Chris Harper, now Annie Duffy

Internet Marketing Associate Angie Cerny

Branding and Production Coordinator (half-time)

Holly Endersby and Scott Stouder from the Northwest Outdoor Writers Association visit the Fountainhead Antique Auto Museum.

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ADVERTISING AND PUBLIC RELATIONS DEPARTMENT (CONTINUED)

A fter nearly 12 years of dedication to FCVB, Vice President of Marketing Karen Lundquist an-nounced her resignation from FCVB to become Executive Director of the United Way of the

Tanana Valley. Karen served as Associate Member Liaison on the Northwest Outdoor Writers Asso-ciation Board and on numerous local committees. She was involved in the following activities: Fairbanks Rotary Club, UAF Institutional Review Board (IRB), Chena River Run, Go Red for Women, and the Public Relations Society of America. Also involved in the following statewide marketing activities: ATIA Marketing Committee; ATIA website and advertising subcommittees. Her efforts have resulted in the Annual Convention of the Outdoor Writers Association of America to be held in 2012 at Chena Hot Springs Resort and Fairbanks. We thank Karen and wish her well!

FCVB continued seasonal in-state television and radio advertising and worked collaboratively with the Mid-night Sun Festival, Midnight Sun Run, Alaska Railroad and Fountainhead Antique Auto Museum to develop a 30-second TV spot, “Summer Fun Under the Midnight Sun,” which ran statewide. Aggressive radio programs were implemented to promote outbound Condor and Frontier flights to Fairbanks residents, including contests for two sets of round-trip tickets on Frontier. The Alaska Airlines Mileage Plan Auc-tion was completed with a winning bid of 300,000 miles. Cooperative marketing programs added to the department’s success. An ad in the May issue of Alaska maga-zine included participation by 16 businesses. Summer (June-September) co-op ads in Alaska Airlines Magazine featured between 6 and 9 partners each month, and a two-page co-op ad in the Winter 2010 issue of American Road Magazine which featured a 14-page spread on the Richardson Highway. Total advertising spent on the following: Print–$322,159; Internet–$32,448; In-State Television/Radio–$77,579; Condor & Frontier (to promote outbound)–$9,917.

KEY COLLATERAL ENHANCED TO MARKET FAIRBANKS FCVB continued to integrate “Light, Energy and Warmth” mes-sages into collateral, advertising and promotional materials throughout the organization, including 250,000 copies of the 2011 Fairbanks Visitors Guide and 35,000 copies of the 2010-2011 Fairbanks Winter Guide which are distributed domestically and internationally.

PROVIDING LEADERSHIP AND COMMUNITY SUPPORT Internet Marketing Associate Chris Harper taught a spring 2010 class in social media at the UAF Tanana Valley Campus. Weekly 3-minute Morning Updates for KFBX radio (an in-kind donation on their part) and 1 ½-minute call-ins to KIAK radio on related tourism topics were used as a promotional tool sharing information of benefit for the community. ACTIVE PARTICIPATION IN MORRIS THOMPSON CULTURAL AND VISITORS CENTER The department continued to work actively with MTCVC staff to develop interpretive content and text panels for the building and exhibits and also submitted content as required for MTCVC Bridges quarterly newsletter. FCVB created an ad template featuring MTCVC for guidebook and highway publications and ran weekly ads in the Fairbanks Daily News-Miner promoting events occurring at MTCVC.

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MEETINGS AND CONVENTIONS DEPARTMENT

DEPARTMENT STAFF Helen Renfrew

Director of Meetings and Conventions

Vacant Meetings and Conventions

Senior Sales Manager Vacant

Sports and Convention Sales Manager

Ginessa Peter, now Allison Thompson

Conventions Services Coordinator

BRINGING HOME THE MEETINGS, CONVENTIONS AND CONFERENCES Listed below are some of the events that took place in 2010. The Meetings and Conventions Department played a key role in either bringing the meeting to Fairbanks or provided hands-on assistance with the success of the event. Alaska Music Educators Association State Annual Conference American Indian Science and Engineering Society Region 1

Conference United States Department of the Interior Aviation Conference &

Education UAF Alaska Center for Energy and Power Rural Energy Conference Clinical Laboratory Scientists of Alaska Annual Conference Alaska Peace Officers Association Crime Conference 2010 7th Biennial Natural Resource Extension Professionals Conference Alaska Natural Gas Development Authority Board Meeting Alaska Power Association 2010 Annual Conference Alaska Travel Industry Association Marketing Committee Meeting Museums Alaska and Alaska Historical Society Joint Annual

Conference National Association of Social Workers, Alaska Chapter

CONVENTION SALES DEPARTMENT DETAIL SUMMARY # of Groups Attendees Rooms Estimated Impact Sales Leads: 37 18,992 42,476 $15,320,560* Bureau Generated Bookings: 35 5,085 6,720 $3,357,760 Lost Opportunities: 6 4,365 10,575 $4,606,000* Completed Events: 39 8,025 8,906 $5,870,000 Events Serviced: 34 8,410 14,028 $5,895,160 Pending Business: 12 11,482 18,185 $9,754,160* *Sales Leads, Lost Opportunities and Pending Business all include future AFN Conventions.

MARKETING FAIRBANKS FOR MEETINGS BUSINESS The Meetings and Conventions Department markets Fairbanks in a number of hands-on ways. Site inspections and familiarization trips were conducted for the University of the Arctic Rectors’ Forum, Cray User Group, First Alaskans Institute Elders & Youth Conference, the National Indian Health Board Consumer Conference, and Alaska Fed-eration of Natives. Sales blitzes were held to bring Fairbanks meeting information to the planners at UAF, in Anchorage and in Juneau. Direct attendee promotion was made to the 2010 Mycological Soci-ety of America and the 2010 Alaska Fire Conference, marketing Fair-banks directly to meeting attendees, encouraging an increase in at-tendance when the groups come to Fairbanks in 2011. PROVIDING LEADERSHIP AND COMMUNITY SUPPORT The Director of Meetings and Conventions is involved with the Cham-ber of Commerce and the Fairbanks Rotary Club. The Meetings and Conventions Services Coordinator was involved in Kiwanis and a member of the Chamber of Commerce’s Urban/Rural Committee.

T he goal of the Meetings and Conventions Department is to

sell Fairbanks as a meeting destination, thereby filling hotel rooms and benefiting our community’s economy. The main meetings and convention season in Fairbanks runs from October through April, and provides year-round facilities a solid business base when the summer visitor season is over. The department focuses on direct sales efforts, supported by our business partners, and of offering exemplary customer service to all meeting planners. This department also leads the Fairbanks Meeting Ambassador Program, actively seeking out and recruiting community members who, through their affiliation with an organization, invite their group to meet in Fairbanks and work with FCVB through the conclusion of their event.

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MEETINGS AND CONVENTIONS DEPARTMENT (CONTINUED) FAIRBANKS MEETING AMBASSADOR PROGRAM In January, the FCVB hosted a reception honoring the eleven Fairbanks Meeting Ambassadors whose hard work was realized when their events were held in 2009. Ambassadors who were not able to attend the event were presented their certificates at either a Fairbanks City Coun-cil or Fairbanks North Star Borough Assembly meeting. These meetings brought almost 2,500 people to Fairbanks and contributed over $1.4 million new dollars into our economy. Twenty-eight Fairbanks Meeting Ambassadors have been identified for meetings held in 2010. Together they brought 19 meetings to town. These meetings accounted for over 2,000 visitors and an estimated direct atten-dee spending figure of over $1.24 million dollars. THE FUTURE The Department will be focused in 2011 on a “Back to Basics” plan, prioritizing direct sales efforts and outreach to current and potential Fairbanks Meeting Ambassadors. In this economy, we are all doing more with less. To be sure that we are putting our resources to the best possible use, it is imperative that we are working in part-nership with stakeholders in the Fairbanks meetings community. These partners will be instrumental in discus-sions and decisions about this department’s future goals.

AFN 2010 — Undoubtedly, the largest project undertaken by the Meetings and Conventions Depart-ment in 2010 was coordinating the Fairbanks community’s preparations for the First Alaskans Institute Elders and Youth Conference and the Alaska Federation of Natives Convention. This is the largest meeting in the state of Alaska with conservative estimates of 4,000 visitors and well over $4 million in economic impact for our community. In 2005 and 2007, the last two times these events were held in Fairbanks, a contracted community liai-son was hired to coordinate all of the committees and projects that must be developed and com-pleted in order to be sure that the delegates and visitors, have an enjoyable time while meeting in Fair-banks. The FCVB budget didn’t allow for that liaison to be hired for 2010, therefore the work was car-ried out by volunteers and employees in all FCVB departments and coordinated through the Director of the Meetings and Conventions Department. In March of 2010, eight committees began meeting: AFN 2010 Community Committee, Fundraising, Health & Safety, Transportation, Hospitality & Logistics, Elders & Youth, Arts & Events, Media/PR. Each committee had at least one FCVB employee assigned to it. When the events of Convention Week drew to a successful close on October 23, it was because of the efforts of hundreds of volunteers, commu-nity leaders, sponsors, supporters, and FCVB employees. While in the midst of planning for 2010, the Meetings and Conventions Department also submitted bids for the 2011, 2012 and 2013 AFN Conventions. The 2011 Convention will be held in Anchorage at the Dena’ina Convention Center, where it was also held in 2008 and 2009. The decisions regarding the location of meetings after 2011 have not been made to date.

From left: Ginessa Peter (FCVB); Sharon Kalisz (Westmark); Buzzy Chiu (Fountainhead); Walter Watts (Veterans of Foreign War); Yumi McCulloch (Icebreakers Hockey); Lloyd Huskey (UA Museum of the North); Barbara Nore (Intl. Order of Rainbow Girls); Helen Renfrew (FCVB)

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TOURISM DEPARTMENT AAA, TRAVEL AGENT AND TOUR OPERATOR CONTACTS The Tourism Department had a total of 190 new and repeat contacts including: 24 contacts with AAAs, 64 contacts with international and domestic travel agents, and 102 domestic and international tour op-erators. INTERNATIONAL SALES MISSIONS In the Asian markets, the department participated in the ATIA Korea and Japan Sales Mission and met with tour operators and media in Seoul, Tokyo, Nagoya, Osaka, and Fukuoka. Representatives attended and participated in TIA’s See America Week in Japan and exhibited at the JATA World Fair in Tokyo and the International Travel Fair in Taipei, Taiwan. Also attended was the Alaska Travel Industry Association’s Australia/New Zealand Sales Mission. In German Speaking Europe, the department participated in an ATIA Sales Mission visiting Switzerland and Germany and attended the ITB in Berlin, Germany considered to be the largest travel trade show in the world, visiting with several major tour operators as well as Condor Airlines. TRADE/CONSUMER SHOWS The department represents Fairbanks at travel and consumer trade shows to promote Fairbanks as a visitor destination. In 2010, the FCVB : exhibited at the Adventures in Travel Expo in New York City as part

of an Alaska Travel Industry Association (ATIA) booth share; attended the annual American Bus Association Marketplace in

Washington, D.C.; attended the Go West Travel Summit in Sacramento, California

and met with domestic and international operators to develop new tours;

exhibited at LA Times and New York Times Travel and Trade Shows in a booth share with the Alaska Travel Industry Association (ATIA);

exhibited at the Colorado RV, Sports, Boat & Travel Show in Den-ver, Colorado to promote the new direct non-stop service to Fair-banks on Frontier Airlines;

attended the United States Travel Association (USTA) International Pow Wow held in Orlando, Florida and met with over 40 operators from Japan, Taiwan, China, Germany, Switzerland, the UK, France, Australia, and New Zealand;

attended the ATIA Convention in Whitehorse, Yukon Territory; participated in the Alaska Down Under Workshops in Australia &

New Zealand; exhibited at the Dallas Travel Show; attended the National Tour Association’s annual convention in

Montreal, Canada.

T he Tourism Department’s objective is to promote

Fairbanks and Interior Alaska as a v is i tor dest inat ion, both domestically and internationally. The goal is to increase the number of independent visitors and package tour visitors to the Fairbanks area and increase the length of their stay. To accomplish this, Tourism reaches independent travelers through domestic and i n t e r n a t i o n a l a d v e r t i s i n g placements and with direct mail campaigns targeted at tour operators, travel agents and potential independent travelers to Alaska. The Department also manages a new contract for representation in German Speaking Europe. Tourism brings the Fairbanks message to tour operators and travel agents through direct sales and trade shows and serves as the link between members and these markets.

DEPARTMENT STAFF Colin Lawrence

Director of Tourism Greg Allison

Tourism Sales Manager Ashley Ritenour

Executive and Tourism Coordinator

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TOURISM DEPARTMENT (CONTINUED) FAMILIARIZATION TOURS (FAMS) The department hosted several familiarization tours (FAMS) to show-case Fairbanks as a destination and also assisted inter-departmentally with many press tours throughout the year. Some of the FAMS hosted include:

a tour with Japan Airlines for the top three Japanese tour operators who use the JAL charters in the winter;

two JAL charter program decision makers to work on ideas for next year’s winter season;

the Japan Airlines In-flight Magazine visit to do a Fairbanks feature;

a German tour operator with Condor Airlines for a week-long itinerary in the Interior for seven qualified participants;

representatives from Japan Airlines to develop more sum-mer itineraries featuring the Interior;

the ATIA Australia/New Zealand contractor on her first visit to the Interior since being appointed;

the product managers of Dertour and Meier’s Weltreisen in conjunction with ATIA, developed out of discussions at ITB;

a Japan tour operator with 10 participants including several new companies contemplating tours to Fairbanks; and

the Globetrotter Travel Guide Japanese language guide-book editor on a press tour to update a new edition.

INTERNATIONAL AIR TRAFFIC Japan Airlines saw a large drop in their winter charter flight numbers due to restructuring and flying smaller aircraft. The total number of flights was halved compared to the previous winter but the number of arriving passengers was only down by 30 percent with a total of 2,888 Japanese visitors to Fairbanks via the charter flights. Condor continued to fly into Fairbanks with a schedule for their Frankfurt-Whitehorse-Fairbanks flight from May through September operating 18 flights which is one less than in 2009. The chart below totals the num-bers from 2001 through 2010 summer flight schedule. The average number of passengers arriving to Fairbanks was the highest so far, up five percent from 2009 and average departures were up by an unprecedented18 per-cent.

CONDOR FLIGHTS TO FAIRBANKS 2001-2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Arrivals Total 717 953 1038 1066 1124 1022 1351 1375 1353 1349 Average 38 50 55 59 62 60 64 69 71 75 Departures Total 1008 1154 1166 1330 1346 1112 1656 1537 1411 1575 Average 53 61 61 74 75 65 79 77 74 88

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VISITOR SERVICES AND MEMBERSHIP DEPARTMENT In 2010, the Visitor Services staff greeted and provide customer ser-vice to 100,907 visitors at the Morris Thompson Cultural and Visitors Center, a 57 percent increase over 2009. The department continued to staff the information cabin at Pioneer Park throughout the summer and stocked and maintained brochure centers at Fairbanks Interna-tional Airport and Alaska Railroad Depot. Staff also distributed Visi-tors Guides, Winter Guides and maps to Fairbanks hotels and down-town businesses several times throughout the year. WORKING COLLABORATIVELY Along with our partners–Alaska Public Lands Information Center, Alaska Geographic and Tanana Chiefs Conference Cultural Programs–the department assisted in hosting First Fridays at the Morris Thomp-son Cultural & Visitors Center, coordinating monthly newspaper ad-vertising and tallying attendees. Mid-May through mid-September, lunch numbers were gathered weekly from the tour companies, compiled and distributed to down-town businesses. FCVB contributed to UAF’s Fall Orientation with three different seminars and a tour of Fairbanks. Staff continued as-sisting with Condor and JAL flight arrivals and departures and as-sisted with Japanese groups that came to the MTCVC. The department presented Fairbanks information at the Eielson First Term Airmen Center and Fort Wainwright’s Newcomers briefings twice a month and participated in the Military Spouses Appreciation Day at Fort Wainwright with a Fairbanks information booth. Staff also presented winter activities and attractions at the Eielson Town Meet-ing with 80 attendees. BENEFITING OUR MEMBERS The staff provided customer service training throughout the commu-nity, including the “Ask Me About Winter” module and taught cus-tomer service and cross-cultural communication seminars to frontline staff across Fairbanks in preparation for the Alaska Federation of Na-tives Convention. The department also coordinated joint training with Holland America Princess Alaska Tours to downtown businesses.

V isitor Services is the consumer information source for the

Fairbanks region. The FCVB also provides visitor and travel information for Interior Alaska. It is the priority of the Visitor Services Department to provide the highest level of service possible to visitors while they are planning their vacation to Interior Alaska and while they are in Fairbanks. The staff follows up on all requests from potential visitors; provides courteous in-person and telephone support with prompt, accurate information; and welcomes individuals and groups, large and small, to the Cultural and Visitors Center. This staff is known for hospitality and knowledge of the area, which ensures the success of each visitor’s experience.

DEPARTMENT STAFF Karen Lane

Vice President of Visitor Services and Membership

Charity Gadapee Visitor Services and

Membership Manager Vacant

Visitor Services & Membership Coordinator

Corinne Jankowski Data Entry & Accounting Coordinator

GOLDEN HEART GREETERS THRIVE 2010 saw the addi-tion of 15 new volunteers, bumping the total num-ber of greeters from 40 to 55. Greeters assisted with conventions, community events, personal greets and FCVB projects and events. At right: Golden Heart Greeters welcome passengers from Frontier’s inau-gural flight to Fairbanks.

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VISITOR SERVICES AND MEMBERSHIP DEPARTMENT (CONTINUED) Representatives of FCVB attended the 2010 Highway Neighbors Convention in Valdez; the Alaska Travel Industry Association Con-vention in Whitehorse, Yukon Territory, Canada; and participated in Anchorage’s Great Alaskan Sportsman Show in addition to the Fair-banks Outdoor Show. Staff attended the 2010 Arctic Winter Games in Grand Prairie, Al-berta, Canada, and provided vital assistance with the Fairbanks bid for the 2014 Arctic Winter Games and delivered the bid to the Inter-national Committee. FCVB organized and coordinated the 3rd Annual Interior Tourism Conference in Fairbanks in February with 27 businesses in atten-dance with multiple representatives from most of these businesses. The Conference focused on current marketing strategies in a tech-nologically affluent society. With the help of the ATIA-Fairbanks Chapter, the de-partment coordinated the 8th Annual Visitor Industry Walk for Charity. With 400 participating walkers, the 2010 Walk for Charity raised $14,906, with 100 percent of the donations distrib-uted to 50 charities. Since its inception, the Charity Walk has raised $193,062 for local 501(c)(3) nonprofits. HONORING MEMBERS In April, the department hosted the FCVB annual member banquet at the Fountainhead Antique Auto Museum. The Golden Heart Award was presented to John Davis of Ah, Rose Marie Bed & Break-fast, and Hollis Hall, FCVB and community volunteer, for their ex-ceptional hospitality, commitment and effort on behalf of Fair-banks visitors. The Aurora Award was presented to Jill Marshall of Marshall Arts Design, for her consistently exceptional contributions to the development of the Fairbanks visitor industry. The Jim and Mary Binkley Award was presented to the Fountainhead Antique Auto Museum for its creativity, innovation, courage and entrepre-neurialism in the introduction of new and improved products and services for the benefit and enjoyment of visitors to Fairbanks. The Raven Award was presented to Howard Thies for promoting a spe-cial, unique international interest and awareness among prospec-tive visitors. The Gold Pan Award was presented to outgoing Board Chair, Andy Anger from UAF Tanana Valley Campus, for his excep-tional commitment to the organization.

M embership acts as the Bu-reau’s member liaison.

Membership works to increase member support and involvement and fosters relationships with member businesses while generat-ing revenue from membership ser-vices. Membership remains fo-cused on maintaining close work-ing relationships with all Bureau members from small businesses to large corporations. Staff continu-ally updates their knowledge of member products and services to better serve and maximize each member’s business investment. By working together, the Bureau and its members can strengthen the Interior’s visitor industry and econ-omy. VISITOR INFORMATION SPECIALIST AND VOLUNTEERS Steven Bigler, Yuki Kawano Visitor Information Specialists Shelly Smith, Susan McMahon, Matt Hayes, Karl Swenor, Karen Norris, Pia Speck Visitor Information Specialists (Part-Time/Year-Round) Hollis Hall, Carl & Linda Unsicker, Dale Yoder Visitor Information Volunteers 55 Golden Heart Greeter Volunteers

Borough and city mayors Luke Hopkins and Terry Strle cut the ribbon at the start of the 2010 Charity Walk.

Award recipients from left - John Davis; Jill Marshall; Buzzy Chiu and Diane Shoemaker of Fountainhead; and Howard Thies.

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STATEMENTS OF FINANCIAL POSITION December 31, 2010 and 2009

FINANCIAL STATEMENTS

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ASSETS 2010 2009

CURRENT ASSETS Cash $ 625,882 768,241 Receivables Accounts receivable, less allowance for doubtful accounts of $-0- and $-0- 139,577 135,813 Inventory 105,030 92,725 Prepaid expenses 174,142 98,944 Total current assets 1,044,631 1,095,723 PROPERTY AND EQUIPMENT 563,077 595,655 Less accumulated depreciation 369,147 379,903 193,930 215,752 Total assets $ 1,238,561 1,311,475

LIABILITIES AND NET ASSETS

CURRENT LIABILITIES Accounts payable 25,366 131,595 Conference fee payable - 19,147 Payroll liabilities 60,722 43,047 Deferred income - 65,034 Unearned revenues 80,570 82,889 Total current liabilities 166,658 341,712 NET ASSETS Unrestricted Investment in property and equipment 193,930 215,752 Board designated for subsequent years 262,000 422,391 Board designated working capital reserve 240,000 246,609 Undesignated 375,973 85,011 Total net assets 1,071,903 969,763 $ 1,238,561 1,311,475



STATEMENTS OF ACTIVITIES Years ended December 31, 2010 and 2009

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CHANGES IN UNRESTRICTED NET ASSETS 2010 2009 Revenues, gains, and other support:

Hotel/motel contribution from City of Fairbanks $ 1,483,747 1,444,150 Grants from Fairbanks North Star Borough 1,115,801 780,522 Hotel/motel contribution from City of North Pole 4,572 - Fairbanks International Airport contract - 14,581 Program income: Advertising and Public Relations 55,956 35,877 Visitor Services 10,659 15,366 Tourism 13,165 26,251 Meetings and Conventions 31,455 22,911 Membership 191,462 250,531 Interest 3 141 Total revenues, gains and other support 2,906,820 2,590,330 Expenses: Programs: Advertising and Public Relations 997,881 1,200,258 Visitor Services 510,932 519,859 Tourism 383,278 370,722 Meetings and Conventions 324,523 332,979 Membership 135,482 153,968 General Administration 447,609 461,656 Total expenses 2,799,705 3,039,442 Increase (decrease) in unrestricted net assets before nonoperating activities 107,115 (449,111) NONOPERATING ACTIVITIES Loss on disposal of fixed assets (4,975) - Change in net assets 102,140 (449,111) NET ASSETS, January 1 969,763 1,418,874 NET ASSETS, December 31 $ 1,071,903 969,763



STATEMENTS OF CASH FLOWS Years ended December 31, 2010 and 2009

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CASH FLOWS FROM OPERATING ACTIVITIES Cash received from contributions, grants, and contracts $ 2,539,086 2,485,687 Cash received from program revenue 296,614 262,507 Interest received 3 141 Cash paid to employees and suppliers (2,967,817) (2,811,725) Net cash provided (used) by operating activities (132,114) (63,390) CASH FLOWS FROM INVESTING ACTIVITIES Additions to fixed assets (10,245) (9,036) Net increase (decrease) in cash (142,359) (72,426) CASH, January 1 768,241 840,667 CASH, December 31 $ 625,882 768,241 RECONCILIATION OF CHANGE IN NET ASSETS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Change in net assets 102,140 (449,111) Adjustments to reconcile change in net assets to net cash provided (used) by operating activities: Depreciation 27,092 26,077 Loss on disposal of fixed assets 4,975 - Changes in: Accounts receivable (3,764) 128,427 Inventory (12,305) 127,510 Prepaid expenses (75,198) 24,458 Accounts payable (106,229) 86,653 Conference fee payable (19,147) 19,147 Payroll liabilities 17,675 (56,128) Deferred income (65,034) 65,034 Unearned revenues (2,319) (35,455) Net cash provided (used) by operating activities $ (132,114) (63,390)


2010 SCRAPBOOK

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A visit in February by Japan Airlines employees resulted in an article about Fairbanks in JAL’s in-flight magazine, Skyward.

The 3rd Annual Interior Tourism Conference, held in February, focused on current marketing strategies in a technologically affluent society.

World-renowned photographer Chris McLennan made a visit to Fairbanks and Arctic Alaska in March which was featured in Outside China and Adventure magazines.


2010 SCRAPBOOK

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Late August brought an ATIA press trip to Fairbanks, giving several journalists a taste of the great things Fairbanks has to offer.

In May, Karen Lundquist and Kasey Gillam joined Clear Chan-nel representative Yulanda Sykes to present Victoria Roach with two round-trip tickets on Frontier Airlines that she won during a radio promotion.

Fairbanks was host to the First Alaskans Institute Elders and Youth Conference and the Alaska Federation of Natives Convention in October.


101 Dunkel Street • Suite 111 Fairbanks, AK 99701-4806


fcvb 2010 annual report

Documents

service fairbanks

fairbanks flight

japanese visitors

unique visitors

years of fcvb

fcvb annual report highlights

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average number of passengers