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Home My WebLink About18-34 - Levying an annual assessment for FY18-19 for a Business Improvement Area (BIA)RESOLUTION NO. 18-34 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, LEVYING AN ANNUAL ASSESSMENT FOR FISCAL YEAR 2018-2019 FOR A BUSINESS IMPROVEMENT AREA COVERING CERTAIN COSTA MESA HOTELS AND MOTELS THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY RESOLVE AS FOLLOWS: WHEREAS, in adopting the Parking and Business Improvement Area Law of 1989 (Streets & Highways Code §§ 36500 of seq.), the California Legislature authorized cities to levy assessments on businesses in order to promote economic revitalization and tourism, to create jobs, attract new businesses, and prevent erosion of business districts; and WHEREAS, on July 5, 1995, by Ordinance No. 95-9, the City Council adopted a business improvement area, commonly known as the Costa Mesa Tourism & Promotion Business Improvement Area ("BIA"), the purpose of which is to promote tourism to the City and to fund programs and activities that benefit the hotel and motel businesses within the City of Costa Mesa; and WHEREAS, the eleven (11) hotels and motels listed in Exhibit A, attached hereto and incorporated herein by this reference, are currently subject to the assessment; and WHEREAS, the City Council appointed the general managers of the 11 hotels and motels subject to the assessment to serve as the advisory board as required by California Streets and Highways Code Section 36530; and WHEREAS, said advisory board is known as Travel Costa Mesa ("TCM"); and WHEREAS, the City Council has voted to continue the special assessment for the BIA each year since its inception, and it has been levied upon the 11 hotel and motel businesses listed in Exhibit A; and WHEREAS, in January 2000, the City Council approved an increase in the assessment, raising the assessment from one percent (1%) to two percent (2%) based on the sale of overnight room stays; and WHEREAS, in November 2010, the City Council approved an increase in the assessment, raising the assessment from two percent (2%) to three percent (3%) based Resolution No. 18-34 Page 1 of 10 on the sale of overnight room stays; and WHEREAS, the City desires to levy and collect a three percent (3%) assessment within the BIA for Fiscal Year 2017-2018; and WHEREAS, a Resolution of Intention was adopted by the City Council pursuant to Streets & Highways Code Section 36534 at a meeting on May 1, 2018; and WHEREAS, the City Council has conducted a public hearing pursuant to Streets and Highways Code Section 36535; and WHEREAS, the City Council now desires to confirm the annual report filed by TCM and adopt this Resolution to levy the assessment for the 2018-2019 fiscal year. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Costa Mesa as follows: Section 1. Assessment. An annual assessment for the BIA shall be levied pursuant to Streets & Highways Code § 36500 et seq. The boundaries of the territory are the 11 motels and hotels listed in Exhibit A. The amount of the annual assessment is three percent (3%) based on the sale of overnight room stays. New hotel and motel businesses commenced after the effective date of the resolution levying the assessment will be exempt from the levy of assessment, pursuant to Streets & Highways Code § 36531. Section 2. Annual Report. An annual report on the Business Improvement Area has been prepared by TCM, acting as the advisory board, as required by Streets & Highways Code §§ 36533 and 36534. Said report is on file in the City Clerk's Office. Section 3. Types of Activities to Be Funded. The type or types of activities to be funded by and through the annual levy of assessments on businesses within the Costa Mesa Tourism & Promotion Council Business Improvement Area are specified in the referenced annual report and Exhibit B, attached hereto and incorporated herein by this reference. Section 4. Reporting_ and Remitting to the City of Costa Mesa Finance Department. Each hotel/motel owner shall separate the Business Improvement Assessment from the Transient Occupancy Tax on guest billing statements. The specific term "Business Improvement Assessment" shall be included on the billing to identify the assessment amount. The hotel/motel owner shall collect and subsequently remit the Resolution No. 18-34 Page 2 of 10 assessment to the City Finance Department at the same time and manner as the Transient Occupancy Tax. A ten percent (10%) penalty and half percent (0.5%) interest will be assessed on late remittances. Section 5. Method and Basis of Levy. To allow each business owner to estimate the amount of the assessment to be levied against his or her business, the method and basis of levying the assessment are set forth in the annual report relative to the Business Improvement Area, Ordinance No. 95-9, and Exhibit B. BE IT FURTHER RESOLVED THAT the City Council of the City of Costa Mesa, California, does hereby confirm the annual report on the business improvement area as filed (referenced report on file in the City Clerk's Office), and adopt this Resolution, including all exhibits. PASSED AND ADOPTED this 5th day of June, 2018. Sandra L. Genis, Mayor ATTEST: �Ln C�V_ *,"/Ll Brenda Green, tity Clerk APPROVED AS TO FORM- Thomasbudrftie, City Attorney Resolution No. 18-34 Page 3 of 10 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA MESA ) I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing is the original of Resolution No. 18-34 and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the Stn day of June, 2018, by the following roll call vote, to wit: AYES: COUNCIL MEMBERS: Foley, Righeimer, Stephens, Mansoor, Genis NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 6th day of June, 2018. 11-&-Q1,& m - Brenda Green, lty Clerk Resolution No. 18-34 Page 4 of 10 EXHIBIT A The Business Improvement Area ("BIA") benefit zone encompasses the entire City of Costa Mesa boundaries. It is anticipated that the entire City, including businesses and residents, will benefit from increased revenues generated by the activities financed by the BIA assessment. The following businesses will be included in the BIA that is established pursuant to Streets & Highways Code § 36500 et seq., the businesses commonly known as: Ayres Country Inn & Suites Property Address: 325 and 345 Bristol Street, Costa Mesa Business Owner: Newport Country Inn & Suites, Inc. 355 Bristol Street, Suite A Costa Mesa, CA 92626 Property Owner: Newport Country Inn & Suites, Inc. 355 Bristol Street, Suite A Costa Mesa, CA 92626 Best Western Plus Newport Mesa Inn Property Address: 2642 Newport Boulevard, Costa Mesa Business Owner: James Hsuen Shang -Pu Lee 2642 Newport Boulevard, Costa Mesa, CA 92627 Property Owner: James Hsuen Shang -Pu Lee 2642 Newport Boulevard, Costa Mesa, CA 92627 Hilton Costa Mesa Property Address: 3050 Bristol Street, Costa Mesa Business Owner: Ashford Hospitality Trust 14185 Dallas Parkway, Suite 1100 Dallas, TX 75254 Property Owner: Remington Lodging & Hospitality LP 14185 Dallas Parkway, Suite 1100 Dallas, Texas 75254 Resolution No. 18-34 Page 5 of 8 Crowne Plaza Property Address: 3131 Bristol Street, Costa Mesa Business Owner: Brighton Management 1901 Main Street, Suite 150 Irvine, CA 92614 Property Owner: 3131 Bristol Property UC, LLC 2711 Centerville Road, Suite 400 Wilmington, DE 19808 Holiday Inn Express Hotel & Suites Property Address: 2070 Newport Blvd., Costa Mesa Business Owner: Property Owner: Narendra B. Patel 2070 Newport Blvd. Costa Mesa, CA 92667 Narendra B. Patel 2070 Newport Blvd. Costa Mesa, CA 92667 Costa Mesa Marriott Property Address: 500 Anton Boulevard, Costa Mesa Business Owner: Marriott International 10400 Fernwood Rd. Bethesda, MD 20817 Property Owner: Host Hotels & Resorts 6903 Rockledge Dr., Suite 1500 Bethesda, MD 20817 Ramada Inn & Suites Costa Mesa Property Address: 1680 Superior Ave., Costa Mesa Business Owner: B -D, Inns Inc./Ramada Ltd. 1680 Superior Ave. Costa Mesa, CA 92627 Property Owner: B.D. Inns Inc./Ramada Ltd. 1680 Superior Ave. Costa Mesa, CA 92627 Resolution No. 18-34 Page 6 of 8 Residence Inn by Marriott Property Address: 881 Baker Street, Costa Mesa Business Owner: Marriott International 10400 Fernwood Rd. Bethesda, MD 20817 Property Owner: ING Clarion Partners 2650 Cedar Springs Road, Suite 850 Dallas, TX 75201-1491 The Westin South Coast Plaza Hotel Property Address: 686 Anton Boulevard, Costa Mesa Business Owner: Host Hotels & Resorts 6903 Rockledge Dr., Suite 1500 Bethesda, JD 20817 Property Owner: CJ Segerstrom & Sons c/o South Coast Plaza 686 Anton Boulevard Costa Mesa, CA 92626 Avenue of the Arts Costa Mesa A Tribute Portfolio Hotel Property Address: 3350 Avenueof the Arts Costa Mesa Business Owner: Rosanna inc. 3350 Avenue of the Arts Costa Mesa, CA 92627 Property Owner: Rosanna Inc. 3350 Avenue of the Arts Costa Mesa, CA 92627 BLVD Hotel Property Address: 2430 Newport Blvd, Costa Mesa Business Owner: Hollywood Corner Inc. 2430 Newport Blvd Costa Mesa, CA 92627 Property Owner: Shyamal Patel, CA 92782 16609 Honeybee Dr. Tustin, CA 92682 Resolution No. 18-34 Page 7 of 10 =V4!11_1hi_a The BIA assessment will be used to fund Travel Costa Mesa ("TCM"). TCM will fund activities to promote tourism in Costa Mesa and will sponsor related tourist events that benefit the hotel and motel businesses within the City. The specific improvements and activities to be funded by this assessment are outlined in the TCM's 2016-2017 Annual Report. Revenue A three percent (3%) levy will be assessed against each of the 11 hotels listed in Exhibit A, based on the net revenue from the sale of overnight room stays. Business owners shall pay the assessment to the Costa Mesa City Finance Department on a monthly basis. A penalty and interest shall be assessed on late payments. Note: New hotel and motel businesses commenced after the effective date of this resolution will be exempt from the levy of assessment. Resolution No. 18-34 Page 8 of 8 TRAVEL COSTA MESA ANNUAL REPORT i__2017/2018 TABLE OF CONTENTS Mission of Travel Costa Mesa President's Message Fiscal Overview U.S. Travel Facts Airlift Economic Impact of Tourism in OC OC Visitor Stats New Supply in OC Economic Impact of Tourism to Costa Mesa California's Top International Mari Partnerships Trends with Millennials Marketing Website Overview Social Media and Influencers I PW and OC Marathon Public Relations - Media Coverage Accolades Board Members 1 2 3 7 9 10 11 12 12 13 15 20 21 32 34 37 38 42 45 47 Travel Costa Mesa's Mission, Vision and Key Objective In 1995, Travel Costa Mesa was formed as a nonprofit corporation formed to market the city of Costa Mesa as a desirable, leisure overnight destination in Orange County. Mission Statement Travel Costa Mesa enhances and promotes the destination brand experience, further increasing visitor spending for industry and community economic viability, sustainability and quality of life. Vision Statement Travel Costa Mesa is the engaged destination marketing leader, supporting and selling the city's distinct visitor brand experiences and advocating community tourism benefits. Travel Costa Mesa's Key Objective Increase brand awareness for the city of Costa Mesa as a desirable, overnight, leisure, Orange County destination. r. _RwY .14 . rrx, -r C off ��.' Ad&�.r. I Welcoming the LA Chargers from San Diego to Costa Mesa in 2017 along with the reinvented outdoor venue of the Argyros Plaza at Segerstrom Center for the Arts have added a great deal of excitement to the City of the Arts'. An explosion of culinary offerings over the past five years is enhancing a diverse restaurant scene, inspiring an Eatcation" campaign. South Coast Plaza celebrating its 50th anniversary with a variety of yearlong festivities and limited edition merchandise presented even more reasons to shop and dine at the center. Transportation options that are complimentary for our guests, such as the ART shuttle route expanding to include The LAB and The CAMP as well as Segerstrom Center for the Arts, are making it even more convenient for guests to get around Costa Mesa to experience all that the city has to offer. These great new offerings are a few examples of the thriving environment the City of the Arts' experienced this past year. The allure of visiting California continues to be high. The Golden State remains the number one destination in the United States, welcoming close to 270 million guests in 2016. Orange County visitation has also increased to over 48 million visitors. With the completion of the Anaheim Convention Center's 200,000 square feet of event space in 2017 and the much -anticipated Star Wars' Land opening in Anaheim in 2019, Orange County has good reason to believe these visitation numbers will continue to grow. Travel Costa Mesa's (TCM) staff will continue to strategically innovate and build on the city's foundation as the City of the Arts'. Partnerships with social media influencers/bloggers magnify our targeted messaging relating to dining, shopping and the arts. Several new initiatives have been implemented this year. TCM created a Chef Series Spotlight video campaign highlighting 11 favorite dishes from around our city that generated over 102,000 views (and counting). With the addition of Visit California's new culinary and arts pillar, TCM is poised to elevate the Eatcation'" campaign with new content and itineraries geared towards this growing niche of travel. In an effort to expand our China brand awareness, we partnered with Brand USA to create our first video in Mandarin to attract overnight visitors while visiting Southern California. Continuation of a successful China initiative with the Orange County Visitors Association, a refreshed visitor guide, partner email newsletter, refreshed website pages, a brand awareness study and plans to create a multi -day culinary event are just some of the initiatives the team has been focused on. Everyone benefits from a robust tourism industry. It is an economic engine that drives business, creates jobs and tax revenues. Our job at TCM is to create and increase brand awareness to leisure, transient overnight travelers. The story we tell about our destination must inspire and create preference in a highly competitive market. Each year the TCM team strives to create successful, new and exciting initiatives. The following pages were designed to give a recap of the current tourism climate and our efforts as a destination marketing organization for the city of Costa Mesa. Paulette Lombardi -Fries President, Travel Costa Mesa F, D he'l LVA a w y I 4�ANA =1 _ { 7. Y' - 50 400 rx I'LL Method and Basis of Levy The proposed method and basis of levying the assessment to allow each business owner to estimate the amount of the assessment to be levied against his or her business are set forth according to City of Costa Mesa Ordinance 95-9, and as follows: The BIA assessment will be used to fund Travel Costa Mesa (TCM). The organiza - tion will fund marketing efforts to promote tourism in Costa Mesa and will sponsor related tourist events that benefit the hotel and motel businesses within the City. The improvements and marketing to be funded by this assessment are outlined in the annual report. Revenue A three percent (3%) levy will be assessed against each of the 11 hotels listed in the annual report, based on the net revenue from the sale of overnight room stays. Business owners shall pa the assessment to the Costa Mesa City Finance Department on a monthly basis. A penalty and interest shall be assessed on late payments. New hotel and motel businesses that are interested in participating in the BIA should contact the City and Travel Costa Mesa. This is a voluntary program for hotel partners. FISCAL YEAR 2017/2018 Travel Costa Mesa is forecasting a budget of $2.72M for fiscal year ending June 2018. As of February 2018, BIA funds are at $1,790,637.75. The following represent the primary expense projects for the current fiscal year: 2% 9% 20% ME ART/ Transportation ■ Total Administrative Expenses Total Employee Expenses 2 Total Marketing Expenses Travel Costa Mesa Hotel Partners Hotel Property Address Business Owner Property Owner Rosanna Inc. Rosanna Inc. Avenue of the Arts Hotel 3350 Avenue of the Arts 3350 Avenue of the Arts 3350 Avenue of the Arts Costa Mesa, CA 92626 Costa Mesa, CA 92626 Costa Mesa, CA 92626 Newport Country Inn & Newport Country Inn & Ayres Hotel & Suites 325 Bristol St. Suites, Inc. Suites, Inc. Costa Mesa, CA 92626 355 Bristol St., Suite A 355 Bristol St., Suite A Costa Mesa, CA 92626 Costa Mesa, CA 92626 James Hsuen James Hsuen Best Western Plus 2642 Newport Blvd. & Shang -Pu Lee & Shang -Pu Lee Costa Mesa, CA 92627 2642 Newport Blvd. 2642 Newport Blvd. Costa Mesa, CA 92627 Costa Mesa, CA 92627 Remington Lodging Ashford TRS CM LLC & Hospitality LP Hilton 3050 Bristol St. 14185 Dallas Pkwy. 14185 Dallas Parkway Costa Mesa, CA 92626 Suite 1100 Suite 1100 Dallas, TX 75254 Dallas, TX 75254 Brighton Management Crowne Plaza 3131 Bristol St. 1901 Main St. Bright Bristol Street, LLC 3131 Bristol Street Costa Mesa, CA 92626 Suite 150 Costa Mesa, CA 92626 Irvine, CA 92614 Holiday Inn Express 2070 Newport Blvd. Narendra B. Patel Narendra B. Patel & Suites Costa Mesa, CA 92627 2070 Newport Blvd. P 2070 Newport Blvd. P Costa Mesa, CA 92627 Costa Mesa, CA 92627 Host Hotel & Resorts HEI Hotels & Resorts Marriott 500 Anton Blvd. 6903 Rockledge Dr. 101 Merritt 7 Corporate Costa Mesa, CA 92626 Suite 1500 Park 1st Floor Bethseda, MD 20817 Norwalk, CT 06851 B.D. Inn Inc./Ramada Ltd. B.D. Inn Inc./Ramada Ltd. Ramada Inn & Suites 1680 Superior Ave. 1680 Superior Ave. 1680 Superior Ave. Costa Mesa, CA 92627 Costa Mesa, CA 92627 Costa Mesa, CA 92627 Residence Inn by Marriott 881 Baker St. Marriott International 10400 Fernwood Rd. BRE Select Hotels Corp. Costa Mesa, CA 92626 Dallas, TX Bethesda, MD 20817 Host Hotels & Resorts CJ Segerstrom & Sons The Westin 686 Anton Blvd. 6903 Rockledge Dr. c/o South Coast Plaza South Coast Plaza Costa Mesa, CA 92626 Suite 1500 686 Anton Blvd. Bethesda, MD 20817 Costa Mesa, CA 92626 2430 Anton Blvd. Hollywood Corner Inc. Shyamal Patel BLVD Hotel Costa Mesa, CA 92626 2430 Newport Blvd. 16609 Honeybee Dr Costa Mesa, CA 92627 Tustin, CA 92782 0 SNAPSHOT OF U.S. TRAVEL FACTS In 2016 direct spending from domestic and leisure travel generated $683.1 billion up from $650.8 in 2015. There were 1.7 billion leisure trips taken by U.S. residents in 2016, which is flat compared to the year prior. Business travelers from the U.S. took 457.4 million trips in 2016 up two million from 2015. Direct pending from domestic and international travelers was over $307 billion compared to $293 billion in 2015. International travel to the U.S. declined in 2016 to 75.6 million people compared to 77.5 million in 2015. Overseas visitation was approximately 37.6 million (38.4 million in 2015) with 38 million from Canada and Mexico (39.1 million in 2015). Although both categories of visitation numbers to the U.S. have dropped, the overseas market still accounts for 85.3 percent of the total international travel spend, an average of $4,360 per person, which is a decrease of $40 compared to the previous year. Top 5 Forecasted High Growth Travel Markets Thru 2021 Origin of Visitor China mm Argentina South Korea Japan Arrivals Change `21'15 121 72 50% 43% 40% SOURCE: U.S. DEPARTMENT OF COMMERCE - NATIONAL TRAVEL AND TOURISM OFFICE Each U.S. household would pay 15a more in taxes without the tax revenue generated by travel and tourism 7 California remains a highly desirable destination to travelers in the U.S. as well as internationally. Even though the country has seen a decline in international visitation, California, specifically Los Angeles, has not. In fact, according to an article written in January 2018 from Tourism Review News, the greater L.A. area experienced an increase in travelers, welcoming 48.3 million, which is up 1 million compared to 2016. CALIFORNIAS TOP EXPORTS SOURCE: CENSUS, US DEPARTMENT OF FOOD AND AGRICULTURE $5.5b $3.3b $6.96b $20.69 $7.3b billion $25.2 billion Electrical Machines Non -Industrial Diamonds ■ Voice/Image/Data Equipment Civilian Aircraft Agriculture International Visitor Spending TRAVELER SPENDING BY INDUSTRY SEGMENT Food & 7!verage Shopping Attractions & Entertainment In -State Travel Accomodations MM 0 5 10 15 20 25 30 Billions of Dollars Spent, 2016 SOURCE: DEAN RUNYAN ASSOCIATES California welcomed more than 270 million travelers compared to 258 million the year prior. Spending related to travel hit an all-time high of over $126 billion compared to $122.5 billion in 2015, according to Visit California's Year in Review report 2016-2017. State and local tax revenue hit a record $10.3 billion. Over 1.1 million jobs were supported by the travel industry. 35 AIRLIFT CONTINUES TO EXPAND FOR THE GOLDEN STATE In 2017, there were 112,000 direct international flights into California, which is almost an 11 percent increase compared to 2016. That translates into 25.7 million seats, which is almost an increase of 11 percent compared to the prior year. International traffic to California airports increased 6.4 percent from January through September 2017. Domestic airport traffic increased 4.5 percent for the same time period. John Wayne Airport statistics show an overall drop in passenger traffic for 2017 due to international flights. According to John Wayne Airport December 2017 statistics, there were 10,423,578 passengers at SNA in 2017. This represents a decrease of 0.7 percent compared to 2016. Total international passenger change was -37.3 percent for 2017. In 2017, 1,095 international flights arrived into JWA from Mexico and Canada. In 2016, 2,913 international flights arrived into JWA from Mexico and Canada, over a 50% decrease year over year. 6 ECONOMIC IMPACT nF TOURISM IN OC Direct travel spending in Orange County accounted for $13 billion in 2016 and $2.4 billion in sales, lodging and other taxes and fees for local, state and federal governments, according to Tourism and Economics report for 2016 commissioned by the Orange County Visitors Association. This study, conducted by Adam Sacks, revealed that close to 176,000 jobs were supported by tourism, which breaks down to about 1 in 13 jobs in the county. TOURISM EMPLOYMENT INTENSITY BY INDUSTRY U OC Direct .lobs as a Share of Total by Industry, (SOURCE: TOURISM ECONOMICS) Lodging 94.6% MR Recreation 45.2% Food & Beverage 33.7% Retail 7.6 Total Economy 5.8% 20 40 60 80 100 IN VISITOR ' �ATISTICS ORANGE COUNTY VISITOR SPENDING PROFILE Transportation (Local) Air $102.5m $464.2m Food $3,051.4m Lodging $3,169.1m Retail $3,010.4m Recreation $3,032.2m J SOURCES: CIC RESEARCH, TOURISM ECONOMICS The County welcomed over 48 million visitors in 2016, which is up 1.9 percent compared to 2015. International travelers represented 4.4 million, an increase of 3.9 percent compared to the year prior. The top three international guests that visited OC are Canada, China and Mexico. Japan, United Kingdom and Australia round out the top six international source markets to OC according to VisaVue, Tourism Economics report conducted by the Orange County Visitors Association for 2016. Source: Smith Travel Research, Inc. (STR) Costa Mesa numbers reflect 10 of the 11 hotel partners that report to STIR Market Occupancy Average Daily Rate California 75.3% $161.80 no change +2.1 _77.9% $156.54 Orange County i -0.4% +3.9% 80.8% $147.18 Costa Mesa +0.2% +2.5% 11 NEW SUPPLY IN C' Over the last two years, 2,700 new hotel rooms were going to be added to Orange County's supply. A few of those projects are now scheduled to be completed in 2018, which include the expansion of the Hilton Huntington Beach Waterfront Resort with 152 rooms, Autograph Collection Lido House in Newport Beach with 130 rooms, and Hyatt House with 149 rooms and a Hampton Inn & Suites with 101 rooms, both in Irvine. As noted by CBRE in their lodging report for Orange County through November 2017, revenue per available room (RevPAR) is expected to grow 2 percent. The supply is forecasted to be greater than the growth in demand. ECONOMIC IMPACT TO COSTA MESA The business of tourism fuels the economy for the city of Costa Mesa. According to the adopted Operating and Capital Improvement Budget from the city of Costa Mesa, transient occupancy tax (TOT) for fiscal year ending June 2018 is estimated at $9.3 million, which is an increase of 6.6 percent year over year. Last fiscal year, TOT was projected at $8.73 million. This TOT is collected from hotel guests that stay for 30 days or less. The TOT is currently 8 percent of a guest's overnight hotel room rate. One hundred percent of the TOT goes directly into the city's general fund and represents 7.4 percent of the general fund. Transient occupancy tax is the fourth-largest revenue generator for the city. 12 CAI IFORNIAS TOP INTFRNATIONAI MARKETS The forecast for international travel to California for 2017 is expected to be slightly down by 0.1 percent. However, overseas travel to California is expected to increase 2.5 percent in 2017 and over 4 percent in 2018. The forecasted decrease for 2017 in overall international travel to the state can be attributed to an overall decrease from Mexico and Canada. CANADA California welcomed an estimated 1.5 million visitors in 2016, which is down from 1.6 million in 2015. However, in 2017 California estimates those numbers to increase back up to 1.6 million visitors. Our friends to the north spend an estimated $1,200 per trip (those who travel by air) down about $100 from 2015. Top reasons for travel to California include vacation and holiday and 18 percent travel with children. In 2017 there were 381 weekly nonstop flights to California according to DIIO, LLC (data in, intelligence out.) Canadian leisure travelers are searching for beaches, historical sites, shopping and culinary experiences. I MEXICO Mexico remains the number one international market for California representing more than 40 percent of all international travel. In 2016, a projected 7.9 million guests visited California, up from 7.8 million the year before. Guests flying into California accounted for 552,000, down from 554,000 in 2015. Visitation forecasts for 2017 are at 7.71 million. Areas of opportunity within this market include taking advantage of extended holiday weekends and experiential travel. The average spend is under one thousand dollars per guest (those that fly). Since 2012, airlift to California increased over 50 percent. Although there were 652 weekly nonstop flights into California, direct flights from Mexico City and Guadalajara were cancelled from John Wayne Airport, Orange County (SNA) in 2017. The cost of Port of Entry has been a factor for the airport and airline companies who want to serve these destinations. In November of 2017, the airport submitted a request to the U.S. Customs and Border Protection for Port of Entry status. 13 CHINA In 2009, China was California's 7th ranked overseas market. Today, it's number one, with over 1 million visiting the Golden State in 2016. Projections indicate 1.4 million visitors will have visited California in 2017 with spending hitting over $3 billion. China's expanding economy, overall easing of visa restrictions and airlift continue to help visitation numbers grow worldwide. Booking timeframes are typically 1-3 months for over 70 percent of travelers. Online travel agencies and airlines make up the majority of booking to California. Tour operators and travel agents book more than 30 percent of travel. China Airlift 2014 2017 Weekly Nonstop 77 150 Flights to CA Weekly Seats 22,944 43,696 The amount of new flight routes added from China to California continues to expand rapidly. Over the past year, 40 new routes were added. There are now 150 weekly nonstop flights with 43,696 available seats. Beginning in spring 2018, China Airlines will launch 4 direct flights per week from Taiwan to Ontario International Airport. 14 22 .1 Ll Allpmmmm� 71 T+w , N �z ��'•. � � �� _ 1, .,, Sf1a`� pfi �• VISIT C.M.IFORNIA California is the number one travel destination in the United States. With over twenty years of experience, they are the only organization that provides a statewide platform for the Golden State. Visit California focuses on promoting the brand domestically and to 13 international travel markets around the world. Travel Costa Mesa is just one of more than 100 destination marketing organizations to which Visit California provides research, marketing and networking opportunities. This past August, the team at TCM traveled to Sacramento to present to the staff at Visit California just what the City of the Arts' has to offer. Chef Amar Santana, Segerstrom Center for the Arts and South Coast Plaza joined the presentation to raise awareness about the city. Throughout the year, TCM also partners with Visit California in creating travel and trade familiarization trips and PR opportunities domestically and internationally. VISItA iE6 . 1 ORANGE COUNTY VISITORS ASSOCIATION As the only visitor organization that promotes all of OC, the Orange County Visitors Association has been a key partner for TCM for the past 6 years. OCVA provides brand marketing on behalf of the region, research, collective industry advocacy and educational opportunities for their members. Marketing opportunities for TCM this year included exposure in travel shows such as "Samantha Brown's Places to Love," the San Francisco OMG OC branding campaign, a sales mission trip to China, media exposure and familiarization trips for editors from the Pacific Northwest. THE '21 17 COMPONENTS OF OCVA'S GLOBAL SALES & MARKETING STRATEGY IRI Public Relations IRI In -Country Websites IRI Social Media III Familiarization Trips 101 Sales Missions IBI Trade Shows IRI Agent Training 101 Media Initiative 101 Promotions IRI OTA Strategies IRI MICE Strategies ANAHEIM RESORT TRANSPORTATION As we enter into the third year of partnership with the Anaheim Resort Transportation group, ridership numbers continue to substantially grow year over year. This shuttle transportation service allows guests from our 11 partnering hotels to conveniently visit the Disneyland° Resort. Guests staying in Anaheim can also utilize this shuttle and ride to South Coast Plaza and enjoy shopping and the various dining options in the area. As of July 2017, the city was awarded a grant, which enabled the existing service route to be extended. A complimentary midday, intracity extension is available where guests can explore The LAB and CAMP as well as the campus of Segerstrom Center for the Arts. TOTAL RIDERSHIP COSTA MESA/ANAHEIM ROUTE: M INTERNATIONAL MARKETING PARTNERSHIPS TCM focuses primarily on the domestic market, Travel Costa Mesa but has partnered with OCVA on a variety of international initiatives. Nearly 25 percent of Marketing Presence visitors to Costa Mesa are from countries outside of the United States. For the past few years, we CHINA: have worked on marketing Costa Mesa to the Chinese free independent traveler (FIT) as well Social Media: WeChat as the meetings and incentive markets (MICE). Online: Travel Costa Mesa.cn, As noted in the pages above, the Chinese market Visit the OC, Ctrip has grown substantially over the last ten years, and Sales Manager and PR: California projects an estimated 1.4 million people to visit the state in 2017. Continued growth is Destination sales -Shanghai expected. 1.5 Sales Managers in Beijing Email Newsletter: Travel Costa Mesa continues to invest in a Quarterly -sent to sales teams dedicated Orange County, California -sponsored & database of customers page on CTrip, one of China's largest OTAs along with other destination marketing organizations, Disneyland° and Brand USA. The purpose is to build brand awareness CANADA of Costa Mesa as an overnight Orange County leisure Social Media: Facebook, destination. This marketing strategy continues to be successful in booking room nights to our Instagram, Twitter partnering hotels. Online: Travel Costa Mesa.com Email Newsletter: As we continue into year number two with the Monthly MICE initiative, we continue to see bookings and great potential from this program. OCVA BAHRAIN, KUWAIT, retains dedicated sales managers in Beijing selling on behalf of our city, South Coast Plaza, Disneyland°, UAE, SAUDI ARABIA, Anaheim and Newport Beach. QATAR, OMAN Last year TCM participated in an OCVA Mexico Social Media: Facebook, sales mission trip along with South Coast Plaza, Instagram, Twitter Disneyland°, Anaheim, and Huntington Beach. Sales calls, trade and media presentations attracted about Online: In country websites: 200 tourism executives. As of 2018, TCM will look to UAE, Kuwait, Bahrain, Qatar, partner with Visit California as the OCVA initiative has Oman through OCVA been put on hold. We look forward to other initiatives Sales Manager and PR: that give us the opportunity to share our destination Destination Team & PR in Dubai with the millions of travelers that visit the state annually. Email Newsletter: Monthly- sent to sales team Travel Trends Within the Millennial Generation Understanding the habits and areas of interest for the Millennial generation will assist TCM in effective marketing strategies aimed to the largest living generation on earth. The Millennial generation is defined as anyone born between 1981 and 1996. There are 80 million Millennials in the U.S. alone and 2 billion in the world according to AT Kearney, Where are the Global Millennials. This generation has surpassed the population of Baby Boomers. Millennials in the U.S. will take 2.6 trips per person each year and those with families will take even more. American women in this same category will take over 3 trips per year. Forty-four percent of Millennials are traveling with kids. This generation will also vacation by themselves. Many articles in 2017, such as those in Conde Nast Traveler and Vogue, have highlighted this segment of travel with safety tips and best vacation ideas. TOP AC'TIVITIFS FOR MILLENNIAL FAMUFS. 1. Dining 2. Attractions (zoos, theme parks, aquariums) According to an Insights West report from 2017, urban destinations and visiting a beach resort top the Millennial travel list. Safety and cost are noted as key factors in their decision-making process of where to vacation. But dining was cited as the most enjoyable activity. A variety of options, unique atmosphere and quality of food are influential factors. They want to learn and experience new things. Millennials prefer full-service hotels, and the majority will book their reservations on travel websites (64 percent) followed by booking directly on the hotel's website. 20 tm&,k, , kmLglv IV MARKETING STRATEGY Travel Costa Mesa's marketing strategy continues to educate our audience to where Costa Mesa is geographically, top attractions for visitors to experience, and positioning in central Orange County. Travel Costa Mesa's primary goal is to increase leisure overnight stays with consistent messaging in all marketing campaigns around the core tourism drivers of shopping, dining and the arts/theater. To find out more about what those in our target markets knew about the city, TCM initiated a Costa Mesa Brand Awareness Survey. MMGY Global conducted an online survey of 500 California residents from July 19-23, 2017. All respondents were at least 24 years of age. Four hundred respondents reside in Los Angeles or San Diego counties, while 100 respondents reside in northern California counties. What we learned was that 83% of respondents were aware of Costa Mesa, but not as familiar with its offerings. While 62% of those surveyed did associate the city with upscale shopping, only 44% recognized its emerging food scene and only 28% knew about its theater district. It became clear that we needed to focus more on the City of the Arts' brand and its shopping, arts and dining strengths. In 2017, TCM shifted to a stronger brand -based marketing strategy rather than an excessively promotional approach. We decreased the number of tactical (promotional) marketing campaigns to two rather than three, allocating more of our budget to an "always -on", brand -centric approach to maintain website traffic numbers, while continuing to introduce Costa Mesa to new markets interested in travel for shopping, dining and the arts. 23 • PbO�dpAwi �� COSTA MESA CALIFORNIA TACTICAL MARKETING CAMPAIGNS TCM ran two tactical (promotion -based) campaigns in 2017. The Dine on Us campaign ran from April 5 to May 29, 2017. It was the first of its kind in that it merged awareness messaging with a tactical offer. It also introduced SOCO and The OC Mix to potential visitors by offering a gift certificate for a variety of its restaurants. 7AY w6 us DINE vA LK !! Stay With Js, Dine Qn U5 .y.•..w-,..,� r...�•r... n...... bar .., � We launched the "Indulge in Style" campaign for the holidays, offering a $100 South Coast Plaza gift certificate with a 2 -night Costa Mesa hotel stay through Jan. 7, 2018. We focused on a holiday shopping theme, keeping our ads fashion -forward and stylish to attract the discerning holiday shopper. {`as And Got $100 To !Ad.,lge At Soni^ wast P;eza —d-CalaW. JD—C.— Eyol Sai.rt�wr,ra -i.e:4 .dna M Imus y,.. C..r.e:d4�aPJ4+4•M++ ILdn..r.i. F..r,c+Y. Ifo- RC-- this pn[kage by .I .::'rwr�artnrrvyHat�ls • O'r. c E )",M;u "�rw".sa nw.a ar..r.na. trot,- i+trrl..rrlw�rr m.r roMyron asr..�a,[�r..r" rG�.tiVwMr�.`. �r n.mnw.mn+a4o rv., 24 Along with advertising on platforms such as Adara and Quantcast, and along with a shopping series highlighting top fashion and personal care picks for the holidays at South Coast Plaza, we engaged in a pilot partnership with Tesloop, a service providing city -to -city rides in a fleet of fully -electric Tesla vehicles on routes from LA and SD. Tesloop promoted our offer to their marketing list, created routes specifically dropping riders off at participating Costa Mesa hotels, and also wrapped their vehicles with Costa Mesa decals through February 2018. � r HNIO T�Nwpr, inn �.�.n�wwcay...raw.��....�,..w�.�.,.w....�.�.rv.+gwa��aeww• We started a monthly "Chef Spotlight" series where we feature a different Costa Mesa chef preparing one of their favorite dishes. Our goal going forward is to increase the numbers of video on our sites and also in our social presence. Videos are posted on YouTube and Facebook, with social media support across all channels. In 2017, we created 11 videos receiving more than 102,200 views. 25 4 Foodbeast dw For the first time, TCM partnered with Foodbeast, a popular food and drink blog founded in 2008. The blog has been referred to as the "TMZ of Food News." Foodbeast has over 4.7 million Facebook followers and 617,000 Instagram followers. TCM filmed three videos with Foodbeast - two "Foodbeast Approved" videos where one chef and restaurant are featured in each, and one called "Chomping Grounds," which features a great foodie neighborhood visited by a local foodie blogger. The "Foodbeast Approved" videos were done at Vaca and The Crack Shack, featuring Costa Mesa's two Bravo TV's Top Chefs, Amar Santana and Richard Blais. The "Chomping Grounds" video featured 5 restaurants on Costa Mesa's Westside: Boathouse Collective, Wild Goose Tavern, Sidecar Doughnuts, Oak and Coal and Catalina Fish Kitchen. The campaign was a big success with over 2.7 million video views. V 6 W EatcationT L TCM began the process of trademarking the term EatcationT" in 2016. With the huge increase in foodie tourism, TCM will continue to build marketing campaigns focused around food and the diverse and delicious culinary offerings of the city. We developed a logo, added to foodie pics we post on social media. We created an EatcationT" page with traffic driven to it from blogs, content marketing and our native content marketing ads driven from those interested in food and dining. Foodbeast Campaign Highlights: Over 14.8mm+ campaign impressions Over 2.7mm+ video views Over 349K+ social engagements (comments, likes, shares, etc.) Over 35 PR content syndications including Huffington Post, Taste of Home, PopSugar, Culture Trip, Spoon University, Delish, Food52, Playbuzz, Daily Meal and more �s r_ �Y-E A/ COSTA MESA 26 TCM ON TV "The Harry Show" is hosted by singer/songwriter, Harry Connick Jr. Produced in New York City, the show has earned five Daytime Emmy nominations and a Critic's Choice Award nomination for Best Talk Show and averages over one million viewers daily on this hour-long program. In May 2018, "The Harry Show" will feature programming focused on moms in honor of Mother's Day. Travel Costa Mesa had the opportunity to provide a trip to be given away on air to one lucky mom in the audience. Together with The Westin South Coast Plaza and South Coast Plaza, we put together a luxurious travel experience to visit Costa Mesa. HARR Join the party? Weekdays. The Travel Mom 11 Emily Kaufman, The Travel Mom, conducted a broadcast media tour in January to promote the RX for Post -Holiday Stress concept in Phoenix, Las Vegas and Denver, with a bonus audience in the Chicago market. This was Emily's second visit to Costa Mesa, with a previous campaign promoting a weekend escape in 2016. j �4 MFY I�AYnM1�M1N00HTMMM.PMO�GCVM441N Wp Mb'�9�I N40w �WOOMF la � �mb�fJl� V PST 27 w The Travel Mom Campaign Highlights Broadcast tour: Phoenix, Las Vegas, Denver and Chicago to promote Costa Mesa and Orange County during the winter months Partners: South Coast Plaza, Visit Buena Park, Visit Huntington Beach Results: 20:14 minutes airtime; 154,324 viewers; Media Value - $63,540 Facebook Giveaway: 2 -night stay in CM, Gift Cert to SCP; Attractions in BP and HB Facebook Results: 2,154 likes; 10,151 views of video; 72,059 people reached; 783 comments yo1oim Costa Mesa was featured on yoloTX, a television show in Texas, along with the cities of Buena Park and Irvine. It was the first visit of this Texas TV show to a region outside of Texas. The theme of the show was to highlight what Orange County had to offer besides "beaches and mouse ears." YoloTX is shown on 14 broadcast TV stations (ABC, CBS, NBC, FOX and CW), in 13 markets available in 91% of Texas households. Having previously hosted a television series on the Travel Channel, she is one of America's favorite travelers. Samantha Brown has created her own brand and brings her sense of warmth and adventure to the screen. In her new series, "Places to Love," Samantha gets to the emotional heart of travel by finding the people who are changing, challenging and strengthening a destination to deliver a decidedly refreshing and personal travel experience. Airing locally on KOCE TV and nationally on PBS, Costa Mesa and five other Orange County cities were featured on her show in spring 2018. As the United States' most trusted public institution, PBS is the 5th most watched network among Ilk both broadcast and cable with more than 80% of all TV households watching PBS during the course of a year. p Nationa 1 Pancake Da; ♦ Feb. s7 F lam - 7P1 i�C3oo RELAXING IN STYLE IN COSTA MESA oWW —...--,h-1-.n� sAMwKTMA PLACES BROWN'S to wvs 28 CONTENT MARKETING Between maintaining a robust website of content, and sharing relevant and new information on social media each day, the Travel Costa Mesa blog is a valuable news outlet for publishing new, creative and relatable content that our consumers will find on our own platforms, as well as when searching the internet. Since February 2017,13 targeted blogs were published through Taboola - a native advertising/content platform that helps deliver content targeted to specific audiences with interest in topics relative to TCM's marketing pillars of shopping, dining and the arts. Travel Costa Mesa $log Tra+.el CNIa Mesa Posred on July u, mn I mapm I Travel Costa Mesa With mere than a million visitors to the OC Fair each year, visitors pnabably all have a slightly different rake on how they approach this beloved Costa Mesa festival, the second largest in Southern California and one of the Top 10 in the United States. And ifs definitely one of the top Casts Mesa events Far a month every surrxne 4 "Farm Fresh Fun Is the theme for the OC fai, in 2017, and that about —sap how you might approach your experience- From tasting all the amazing fair Food to exploring fresh produce and newbom animals in Centennial Farm, to the attractions and live Costa Mesa concerts, there is plenty of Fa m, Fresh AND Fun to experience. Costa Mess;s Gt ange Cour.1y5 City or the A B-. fea4M*q free things to &all summef - fi r per:orr-wrtcesat 5egefsmomCenter for the Arts, public art and sculptures throughout threcityand TM edeche art gakries fealurirg Iznik world-renowned and local up-snd-owning artists tiiWtiti Tkwe afe endless pasy61ties For free thugs to da, -itdudirg yettirg y" $II of arts me €uhure in Caste Mesa. Look 6eye64 Ceara W -A. end V6.11 & -e that Orange Cou.,ty rrrahesa wmic tee tam tmrnt to TabOla "mrinca its mature and aarwdsr sc, while cntcrtarsin9 its rrsid�sts arrd vi4itsMs wide free thinyt doall 4100 sur.m�". Content You May Like, Averaging 7,500 clicks per month back to TCM website, these blogs generated 71,695,310 million impressions. Some of the most popular pieces of content based on clicks were in June and July 2017 on the OC Fair and free things to do in Orange County. 29 STUMBLE UPON -9 StumbleUpon is a discovery engine (a form of web search engine) that finds and recommends web content to its users. Its features allow users to discover and rate Web pages, photos and videos that are personalized to their tastes and interests using peer -sourcing and social -networking principles.* TCM began a native content marketing program with StumbleUpon in September 2017. As a social networking site which allows its users to customize its content, TCM content marketing allows targeting of visitors based on their personal interests, location and more. Because users can be driven directly to TCM's site to read relevant content, engagement is high. StumbleUpon was the fifth -highest traffic driver to the site in 2017 after just 3 months. OCVA PARTNERSHIP md" Through a partnership with OCVA for the past three years, TCM hotels have been represented on CTrip, one of the largest OTAs in China. Travel Costa Mesa continues to invest on a dedicated Orange County, California sponsored page along with other destination management organizations, Disneyland° and Brand USA. The purpose is to build brand awareness of Costa Mesa as an overnight, leisure Orange County destination. Orange County as a destination is growing significantly in China. Over the past year, 10 of our 11 hotels were listed on this site. In 2017, TCM participating hotels booked just over a 353% increase in room nights over 2016. * from Wikipedia 30 0 RcconinicndcdPayes�nYorlrinEerests ••.,,-.--� �,--�__� • 80.wesorne Easterfffi5 -_ —' Hidden in Prppdanra You fAc'.C•lacsi -'— the Every. Ri dim "51F Awcsame ,- _ — _.. _ _ '= — Wars to Nater Money Eeelry Computer... 0 Fake Wil --�. Faamcak Grammar Freetemporaryemail =- _ addresses TCM began a native content marketing program with StumbleUpon in September 2017. As a social networking site which allows its users to customize its content, TCM content marketing allows targeting of visitors based on their personal interests, location and more. Because users can be driven directly to TCM's site to read relevant content, engagement is high. StumbleUpon was the fifth -highest traffic driver to the site in 2017 after just 3 months. OCVA PARTNERSHIP md" Through a partnership with OCVA for the past three years, TCM hotels have been represented on CTrip, one of the largest OTAs in China. Travel Costa Mesa continues to invest on a dedicated Orange County, California sponsored page along with other destination management organizations, Disneyland° and Brand USA. The purpose is to build brand awareness of Costa Mesa as an overnight, leisure Orange County destination. Orange County as a destination is growing significantly in China. Over the past year, 10 of our 11 hotels were listed on this site. In 2017, TCM participating hotels booked just over a 353% increase in room nights over 2016. * from Wikipedia 30 North America Initiative NORTH AMERICA _A Travel Costa Mesa joined OCVAs North America Initiative in 2015 to jointly target domestic markets that are interested in traveling to Orange County. Along with a social media campaign, in October TCM hosted six travel bloggers as part of the OCVA Style FAM. The bloggers hailed from cities in the Pacific Northwest including Portland, OR; Seattle, WA and western Canada. PF in Francisco Initiative a For the second year in a row, TCM participated in the OMG OC San Francisco campaign. This was a brand awareness campaign directed to the San Francisco, Oakland and San Jose markets. The campaign ran in December with influencer visits, with the full campaign launching in January. om OMGOC 31 DISCOVER ORANGE COUNTY A�-', _q. k Explore the Arts, Designe, Shopping & Innov t" D1g Explore Costa Mesa SAN FRANCISCO NORTH AMERICA INITIATIVE RESULTS INITIATIVE RESULTS - 16,500 incremental trips the OC 2016117 42,300 incremental room nights during TargetMarkets. San Francisca&Texas $923 average per party trip spend i 2 artides generated + social media content $13.9 million in incremental visitor 50.5M Total Media Reach; Total Combined $63 ROI in vi sitor spend ing for every wl Social Media - 53.2M advertising dollar invested I 2017 1,050,000 social media impressions - Target Markets- Pacific Northwest & Vancouver 31,636,717 eamed media impressions 9 Media Visits complete; 4-5 pending 800K social media reach to date; articles pending Winter/Spring 2018 Anticipated Coverage- - 10+ articles in Canadian Traveller Magazine, Stuffed Suitcase, US. News Travel, Huffingwn Post Pitstops for Kids, The Travelling Mom, Luxe Travel Family, An Emerald City Life,Trekaroo, Walking On Travels, VIA and others Explore the Arts, Designe, Shopping & Innov t" D1g Explore Costa Mesa SAN FRANCISCO INITIATIVE RESULTS 2017 - 16,500 incremental trips the OC 42,300 incremental room nights during the targeted winter season $923 average per party trip spend $13.9 million in incremental visitor revenuestatheOC (estimated) $63 ROI in vi sitor spend ing for every advertising dollar invested 76,825 web page views 1,050,000 social media impressions 31,636,717 eamed media impressions 42,756,472 paid media impressions Explore the Arts, Designe, Shopping & Innov t" D1g Explore Costa Mesa SITE OVERVIEW In 2017 1 Travel Costa Mesaxom HAD zo, 15% user 10% sessions of which 5% 0%1 91 were new visitors AND WERE returning visitors 18-24 25-34 35-44 45-54 55-64 65+ AGE Female 55.6 Male 44.4 32 WEBSITE OVERVIEW CONTINUE- Web Traffic Sessions By Country By State Canada 1.5% All Others Combined 5.8% California 64.39% 2.9° New York Texas 232% 4.8 Traffic January - December 2016 Total users 249,828 Unique page views 398,846 Sessions 296,285 Avg. time on page 0:19 33 Top 10 Viewed Pages 1. Home page 2. OC Fair 2017 3. Dine On US (tactical campaign) 4. Calendar 5. Indulge (Tactical campaign) 6. Hotels page 7. OC Fair blog (content mktg.) 8. SCP 100 (previous year tactical campaign thru Jan 2017) 9. OC Fair Hotels page 10. Arts and Recreation page January - December 2017 YOY+ 300,439 20.26% 497,861 24.83% 351,552 18.65% 1:14 289.31 SOCIAL MEDIA Social media is an invaluable way for Travel Costa Mesa to maintain direct engagement with our audience. We take the opportunity to share current events, great pictures, video and more with our users to increase brand awareness and enhance knowledge of the City of the Arts'. Travel Costa Mesa on Social 12,912 followers 5,012 fans 1,988 followers Overall increase of 7.70% YOY Follow us @Travel Costa Mesa Instagram Top Shots tra •NCO{tYr.lN um W W 91 t caii n en! lC.Iye1:b�+ta ra roNnO k«+6G<[�w'N. hMPkrEIlvN 1yl rm✓N rnilGYp�b so wnsv to ser. v .vsttun nsn A A d Q A 120 ian a6wimu�wu cl+t tbrw n me wt r.oc r >� w s« �.. uN.kanarnr. �co✓�Ya• •!• nvmrr�.nn,nlMrM ` ��l 'Four _ K[ b G�rnsua>rvnty OIIi1MM901 ihmOf6 .,--.g iw Ott—W.r sro:s a uK6e t!o anro+.a•olov.orM ltrana.mo6 rnis �r . nco anpc r..,l�<lu,m.,! �ree6o6aro do A 60 iiklr 34 In 2017, TCM began working with social media influencers to expand our brand reach on various social platforms in a grassroots manner. TCM chose a variety of bloggers in the travel, dining and shopping/fashion arenas, via direct partnership or in conjunction with OCVA, to promote great hotels, shopping, dining and attractions in the city. We will continue to flesh out the influencer program in 2018 to find bloggers and social media influencers in their field to become brand ambassadors. F 35 ---------------- boboandahlehl. Fallvwing The IAB Anti Mal I boboandeRlonf we are haying such a fun tlme exploring ou r own backyard with wavelcwtarnesa Yesterday We Wished fhe Uthelabantimall where they had a place dedicated to getting the perfect Instagrarn photos. These were at least a dozen di frorent rooms with oroos set up He tfilsl We thought it was agenius idaa and had TUM Vlnw Al 17 rvnr —P. qF IQs R N➢yEM9Ef<lq R➢ti /odd a -want... ••• arrlpiaara�ialay. Fallpwirq 0 baboandchichi . Following I �r anncoaeviera ".Ww. Naguehi Gallen _ r4�rv" e'wi. a r'r' PA f+Rnu ruryn babpandchlphl One of the cgplest under 4y rhW e. rl� rw9 �eaaNd,YalaH b.eeY! :he radar Spots in Costa Mesa. Located Ina arw �. ba.bm wrw.w cana.verti p�siness park is Noguchi Garden. 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Tho "•pCr G#yng w nw fw p4r ahk&4-eel. tllhbd':sa�l#1 dorangmaL YY dcvbcgGcr dcdsiarYrm #J�a'clrb,rrrloea #�[s+Wtheans atiaWeNrr astY-MbkVRlH qP () R 107 HMO 97 percent of social media users access social platforms on mobile devices Instagram is expected to grow from a 3Z percent market penetration to 4 7 percent by 2020 Approximately21*5 79 percent of all Internet users have a Facebook account Nearly 110 percent of online traffic will be video content in 2018 billion blog posts are viewed on WordPress (blogging and website content management system) each month 84 percent of Millennials do not trust traditional advertising SOURCE: REVLOCAL° SOCIAL MEDIA AND CONTENT MARKETING BLOG 2018 36 IPW U.S. Travel Association's annual premier international marketplace was hosted in Washington D.C. in June 2017. More than 6,000 buyers, suppliers and media attended from domestic and international markets. Travel Costa Mesa together with Avenue of the Arts Hotel, BLVD Hotel M y and The Westin South Coast Plaza conducted 40 individual meetings. As a result of the show, $66,234 in room revenue was actualized for our participating hotel partners. (a p cd by U.S. Travel OC MARATHON 2017 37 Travel Costa Mesa was again a sponsor of the annual OC Marathon, with a goal to attract visitors from outside of Orange County running the marathon to stay and explore the City of the Arts.° Travel Costa Mesa offers complimentary shuttle transportation to and from our partner hotels for the race. With more than half of Travel n Costa Mesa partner hotels welcoming runners in 2017, Costa Mesa rooms were booked that represented 57% of total rooms booked for the OC Marathon. PUBLIC RELATIONS In 2017, Travel Costa Mesa was able to develop a full year of public relations programming since hiring a full-time Public Relations Manager in late 2016. Creating itineraries, curating media visits and developing content to tell Costa Mesa's story has allowed Travel Costa Mesa to enhance its messaging and brand awareness. Costa Mesa's brand focuses on the City of the Arts' along with key brand pillars highlighting The Art of Dining, The Art of the Stage and The Art of Shopping through various channels. COSTA MESA PARTNER NEWS CALIPOPH A COMMUNI-T WHAT WE'RE UP TO... -' 'TIONS It is just as important that we create brand recognition and awareness amongst consumers as it is with our partners within Costa Mesa. In fact, if our hotels, restaurants and attractions understand what Costa Mesa offers to a visitor, they are more likely to help share our message and extend the messaging to their guests and media who visit. TCM has created a Partner Email Newsletter that is focused on sharing what we as a destination are doing to promote our partners. This newsletter will be distributed throughout the year, providing a roundup of familiarization tours (FAMs) and media visits, media coverage and new happenings in Costa Mesa. In October 2017, we celebrated the grand opening of the Julianne & George Argyros Plaza. Travel Costa Mesa took this opportunity to engage with partners throughout the city and Orange County, extending an invite to attend the grand opening special event. TCM hosted 20 partners at Silver Trumpet Restaurant prior to the viewing of the Bandaloop performance on the new Argyros stage at Segerstrom Center for the Arts. 38 Costa Mesa C im In 2017, the City of Costa Mesa, Anaheim Resort Transportation (ART) and Travel Costa Mesa began to implement the new Costa Mesa City Line, a free shuttle service awarded to the City through a grant with OCTA. The new service is free to riders and is targeted toward employees who work and residents who live in Costa Mesa. Visitors to Costa Mesa can take advantage of easy transportation from nearby hotels to popular dining and retail areas of Costa Mesa, such as The LAB and The CAMP To help educate users, ART conducted a FAM with Anaheim and Costa Mesa hoteliers. Travel Costa Mesa also developed deliberate partnerships with other Orange County destinations that have similar goals in building greater awareness of Orange County and the many unique cities that make up the lesser-known community that lies between Los Angeles and San Diego. These relationships allow Travel Costa Mesa to maximize our efforts and gain further reach of our destination message in a cost-effective manner. Orange County Visitors Association as well as Visit California provide opportunities for shared media visits amongst destinations throughout the county and the state. Additionally, they conduct media missions to markets like LA, San Francisco and New York where there are strong media markets, as well as internationally to destinations including China, Mexico, Canada and more. In 2017, Travel Costa Mesa partnered with Visit Buena Park, Visit Huntington Beach, Destination Irvine and South Coast Plaza to produce Orange County itineraries for media broadcast segments to be featured in drive and short -haul flight markets. M MEDIA RFATIONS In April 2017, The Orange County Register published a front-page article dubbing Costa Mesa the "Capital of Cool." Referencing the fact that the city is at the heart of Orange County and is home to award-winning chefs, shopping centers like South Coast Plaza, and The LAB Anti -Mall, the diverse and expansive dining scene with award-winning chefs, home to theater and ballet, Costa Mesa is truly a cosmopolitan city waiting to be discovered. In fact, it is all of these things that create unique opportunities to host travel journalists, fashion influencers and culinary bloggers throughout the year. In 2017, 10 desk side appointments were conducted with target media in Los Angeles and San Diego, including writers for the Los Angeles Times, Modern Luxury, Westways, Angeleno, I TravelPulse and Just Luxe. These media markets were also targeted during the Indulge tactical campaign in the fall/winter to encourage travelers to stay and shop in Costa Mesa. On a national level, Travel Costa Mesa attended Visit California's media reception in New York. Together with two dozen destinations from throughout California, Costa Mesa had the opportunity to meet and greet nearly 100 travel writers and share a few key messages with them about Costa Mesa. l�� Global travelers, Millennials and Gen Xers prefer unique and off -the -beaten -track vacations, according to Visit California's 2018 Market Blueprint. Additionally, these travelers have a strong interest in visiting a new destination every time. This doesn't mean they won't return to California, or Orange County, it just means they want to experience something new and different on their next trip. To extend the welcome for both international and domestic visitors, Travel Costa Mesa conducts frequent FAM tours. These tours, for travel agents, tour operators and journalists include experiential opportunities to immerse themselves in the destination. In 2017, Travel Costa Mesa hosted 21 FAM tours for 76 travel agents, tour operators, journalists, broadcast media and bloggers from China and the Middle East, as well as domestically from key markets within the United States including San Francisco Bay Area, Los Angeles, Pacific Northwest and New York City. Representatives visited us from organizations including a variety of Chinese tour operators, Visit California and United Airlines. IBM American Airlines China Tour Operators r% � 0"1 China MICE Executives Travel Costa Mesa hosted 9 Chinese corporate meeting executives from Beijing, Shanghai and Guangzhou in partnership with OCVA. China Receptive Tour - Disneyland Resort Participated in a reception with other OC destinations to share Costa Mesa travel opportunities with more than 150 travel and tour operators and guides from L.A. 41 China Advisory Board FAM Costa Mesa hosted 15 travel executives from various cities in China, representing United Airlines, Tuniu, CTrip and Utour World. MEDIA COVERAGE Pretty Connected: Visit Costa Mesa, Orange County's Hidden Gem By Lara Eurdolian "Its 10-20 minute proximity to all the big name OC areas I've been wanting to visit made it an attractive destination, but it was their culinary, art and shopping scene that gives this city its distinct personality." Just Luxe, "Enjoy a Luxury Shopping Getaway to Costa Mesa's City of the Arts"' By Vicki Arkoff NclWrkerr Fdb'MNg GOT u A! u kirYgk fty 5-bkW argil 1` v{l!'�r{1 r9• r-UmW, Ya nal A- WrdWW f a V DQMGGCItit[ -1 6[95ra 1M3i aia.woau,.� xiaxuyc +�rrvenmcean -g Rktneda"., - !ti• •' • qausaeJCoaxa�eausvag Fpy� A, a . r • ❑ R JE �fTY 'n T 4--1 Te'IRTT1 T Lucire - California's Costa Mesa a New Dining Mecca Cos ,Angles Tunes `And while sunshine and surfing are still viable reasons to visit the south of Los Angeles paradise, the suburban city of Costa Mesa ... has cemented the OC as a bona fide foodie and shopping mecca." *�* 9rbes �* Forbes Travel Guide — Top 10 Orange County TRAVEL GUIDE Attractions Included shopping at South Coast Plaza and The LAB and The CAMP; dining at SOCO and The OC Mix *earned media impressions are estimated based on average monthly distributions and traffic. 42 MEDIA COVERAGE CONTINUED WE:) LIKE L.A.- Fun things to do in Costa Mesa on an Excursionfrom LA By Wilder Shaw "The biggest surprise about this entire experience was not just that I very easily filled up my day, but rather that found myself wishing I had left L.A. earlier so I would have more time." An Emerald City Life - Shopping outside at Noguchi Garden by Terumi Pong "It truly is the secret garden of Orange County and hope more people find themselves here in the next little while. And I totally wish more shopping plazas were created as thoughtfully as this one." Pit Stop for Kids: How to Explore Orange County Without Kids by Amy Whitley "Whereas I might have assumed I'd need to travel to Los Angeles for quality theater, the Segerstrom impressed. Begin your night with the prix fixe menu at Silver Trumpet, located directly across the street from the theater." Orange County Business Journal - Travel Costa Mesa Teams Up with Tesloop SoCal Blogger Babes: Babecation in Costa Mesa 43 BABES ORANGE Comy MEDIA C-OVFRAGE CONTINUED Canadian Traveller Magazine, California Travel Guide; The ABC's of the OC Family Fun by Jennifer Hubert "Segerstrom Center for the Arts is the beating heart of the city's arts district and offers kid -focused programming... From interactive storytelling to sing-alongs, shows are designed to be enjoyed as a family outing." Thrillist, Wilder Shaw - Everything you need to do in LA this Winter Take Advantage of Free Stuff in Costa Mesa Just Luxe: Costa Mesa's Culinary Arts Are Taking Off By Beth Graham "For foodies looking to really experience the area and hit up all of the best spots, check out Eatcation itineraries by Travel Costa Mesa, an experience designed to show off the best of the best." Bucket List Publications shared 10 Reasons why Costa Mesa should be on your bucket list. 1. South Coast Plaza 2. Segerstrom Center for the Arts 3. The CAMP 4. Maggiano's Little Italy 5. Ayres Hotel & Suites 6. OC Fair & Event Center 7. Trapzone Escape Rooms 8. The LAB 9. Victor Paul Salon 10. Have Fun Tours 44 ACCOLADES Avenue of the Arts named an AAA 4 -Diamond Hotel for the fourth year in a row. The Pacific Amphitheatre at OC Fair & Events Center ranked #38 in Top 100 venues for worldwide ticket sales by Pollstar. How Costa Mesa Became the Capital of Cool was a featured story in the Orange County Register in 2017. -r-j, W1111111 Orange County Register's Top 75 Best Places to Eat in Orange County feature 14 Costa Mesa restaurants. 2145 Pizza is one of 10 Best New Restaurants in Orange County in 2017 according to Orange County Register food critic Brad Johnson. "Best Food we Ate in Orange County in 2017" - Orange County Register story included menu items from Taco Maria, Vaca and 2145 Pizza. LA Eater named 3 of Costa Mesa's restaurants in the 10 Orange County restaurants worth the drive from San Diego - Restaurant Marin, Taco Maria, Vaca. 45 ACCOLADES Costa Mesa included in Forbes Top 10 Places to Visit in Orange County. Bravo's "The Feast" features Costa Mesa in Food Scenes on the West Coast (It's Not Where You Think) — Hana Re, Blackmarket Bakery, Vaca. Taco Maria ranks #5 in the Top 10 list of the Restaurants in 2017 list in the Los Angeles Times as selected by Pulitzer Prize winner Jonathan Gold. Water Grill named Best Seafood — Gayot.com 10 Best Orange County Restaurants. Pr , Gayot.com added Casa Barilla, Center 360 and The Crack Shack to its Top 10 New and Notable Restaurants in Orange County. Orange County's Golden Foodie Awards named Costa Mesa's Old Vine Cafe for Best Brunch and Sgt. Pepperoni's for Best Lunch Spot. Travel & Leisure name The Straw OC as the #1 Best Milkshake in America. Orange Coast Magazine recognizes three of Costa Mesa's cooking schools in its 6 Best Cooking Classes in O.C. FoodandWine.com and Thrillist named The Crack Shack amongst the Best Fried Chicken in the U.S. 46 COSTA MESA CI i t %jF T. ARTS' CALIFORNIA TRAVEL COSTA MESA EXECUTIVE COMMITTEE Susan O' Brien Moore Chairperson, General Manager, Ayres Hotel & Suites Mike Hall Vice President, General Manager, The Westin South Coast Plaza Sue Cooke Treasurer, General Manager, Residence Inn by Marriott Paul Sanford Secretary, General Manager -Asset Manager, Avenue of the Arts, A Tribute Portfolio Hotel DIRECTORS Naj Ekhlas General Manager, Best Western Plus Rob Gauthier General Manager, Hilton Ronnie Dalgado General Manager, Holiday Inn Express & Suites Tom Hatch City Manager, City of Costa Mesa Michelle Rosales General Manager, BLVD Hotel Katrina Foley Council Member, City of Costa Mesa TBD General Manager, Marriott Ross Stibor General Manager, Ramada Inn & Suites Nermin Khalil General Manager, Crowne Plaza ADVISORS Terry Dwyer President, Segerstrom Center for the Arts Sarah Kruer Director of Tourism Development, South Coast Plaza STAFF Paulette Lombardi -Fries President Kim Glen Director of Marketing Jessica Placentia Operations Manager Jenny Wedge Public Relations Manager Mackenna Waterhouse Social Media and Content Manager W -M COSTA MESS CITY i rHE ARTS' CALIFORNIA 940 South Coast Drive #265 Costa Mesa, CA 92626