BOARD OF DIRECTORS MEETING Wednesday, September 28, 2016 | 8 a.m. The Carter Center
CALL TO ORDER DARYL EVANS CHAIR OF THE BOARD AND EXECUTIVE COMMITTEE
WELCOME DR. MEREDITH EVANS DIRECTOR JIMMY CARTER PRESIDENTIAL LIBRARY & MUSEUM
DESTINATION REPORT MARK VAUGHAN EVP/CSO
Atlanta Occupancy – August 2016 August 2016 YTD Occupancy
2015
2016
ACVB Tax Revenue District
74.3%
74.5%
Hotels w/500+ rooms
75.7%
78.1%
Hotels within 1-mile radius of GWCC
73.6%
75.3%
Metro Atlanta
72.1%
71.4%
Source: STR
Demand Share
Top 25 Markets Luxury & Upper Upscale
MONTHLY
YTD
Source: STR
Key Sales Activities • Currently through August we are at 101% of our room night goal and 108% of our lead goal
Direct Sales Events • Trade Show Executive Gold 100 • ASAE Five Star Weekend • ASAE Summit Awards • IMEX • IAEE • Holiday Showcase • CVB Reps Holiday Event • World Travel Market • Ireland Sales Mission • China Sales Mission • International Showcase
San Diego San Diego Washington Las Vegas Anaheim Chicago Washington London Dublin Shanghai Atlanta
MAJOR GROUPS FOR FUTURE YEARS
Green Up = 10% above average Orange Equals = Within 10% +/- of average Red Down = 10% below average
BOOKINGS
Note: These numbers differ slightly from the Productivity Report due changes in room blocks and distribution of booking credit.
August 2016
Additional Rooms
10,389
Grand Total
96,279
Additional Rooms
68,909
2016 YTD
Grand Total
1,071,243
FINANCIAL UPDATE
GREGORY PIERCE EVP/CAO/CFO
ATLANTA CONVENTION & VISITORS BUREAU FINANCIAL STATEMENT SUMMARY WITH FORECAST THROUGH AUGUST 31, 2016
CONSOLIDATED
CONSOLIDATED
2016
2016
2015
2016
2016
2016
ACTUAL
BUDGET
ACTUAL
YTD
FULL YR
FULL YR
YTD
YTD
YTD
VARIANCE
BUDGET
FORECAST
SUPPORT & REVENUE Public Sector
15,697,080
14,837,999
14,557,353
859,081
22,134,003
22,450,000
Private Sector
3,828,100
4,052,885
2,662,453
(224,785)
8,730,915
8,815,000
19,525,180
18,890,884
17,219,806
634,296
30,864,918
31,265,000
5,977,990
5,699,607
5,259,820
(278,383)
9,280,340
9,270,000
593,052
535,849
489,878
(57,203)
923,510
900,000
Direct Promotional Expense
9,879,102
9,872,360
8,338,153
(6,742)
18,700,952
19,150,000
Capital Expense
1,215,156
1,166,478
1,100,193
(48,678)
1,675,000
1,680,000
17,665,300
17,274,294
15,188,044
(391,006)
30,579,802
31,000,000
1,859,880
1,616,590
2,031,762
243,290
285,116
265,000
TOTAL SUPPORT & REVENUE
EXPENSE Payroll & Related Expense Other Operating Expense
TOTAL EXPENSE
EXCESS(DEFICIENCY) OF REVENUE OVER EXPENSE
MARKETING UPDATE ANDREW WILSON EVP/CMO
ATLANTA.NET
END of AUGUST 2016 YTD
SITE VISITS
MOBILE SHARE
YTD Monthly Average
of Site Visits
+ 20% YoY 437,503
+ 15% YoY 523,481
600K
70%
52%
60%
2015 YTD
2016 YTD
60%
500K
Goal 50% 400K 40% 300K 30% 200K 20% 100K
10%
0K
0%
2015 YTD
2016 YTD
ATLANTA.NET
END of AUGUST 2016 YTD
USER ENGAGEMENT YTD Index
120.3
*
vs. 2015
Weighting
Page Views/Visit Mobile
95
25%
Page Views/Visit Desktop & Tablet
99
20%
Soc. Media Engagement **
167
30%
Leisure Newsletter Open Rate
122
10%
Leisure Newsletter Sign-up
63
5%
Ad Clicks
98
5%
Member Clicks
128
5%
Weighted Index
120.3
* 2015 set as baseline = Index 100 ** Social Media Activity is the aggregate of Likes, Comments, Shares and similar activity across Facebook, Twitter, Instagram and Pinterest.
SUMMER CAMPAIGN REPORT 2016
2015
$217,000
$210,800
Impressions
47,794,737
41,672,456
Video Views • YouTube • Facebook
67,260 276,394
N/A N/A
Clicks to Partner Sites Clicks to Atlanta.net
9,401 81,667
31,183 42,314
Display Native Social eMail Broadcast YouTube Print Influencers
Display Native Social eMail Broadcast -
Budget
Key Components
NEW SALES TOOLS
SOCIAL INFLUENCER CONFERENCE • • • • • •
2 ½ Days 70+ Influencers 13 Speakers Host hotel W Atlanta-Buckhead Opening reception Atlanta History Center 10 Atlanta experiences • Buckhead / East Atlanta Focus
• 2015 Highlights • 50 Influencers • 93 Million impressions • Midtown / Downtown Focus • Investment $50,000 • Media value earned - $500,000 (10:1 ROI)
10/12 – 10/15
CFHOF AND CHICK-FIL-A FAN EXPERIENCE UPDATE
DENNIS ADAMOVICH CEO COLLEGE FOOTBALL HALL OF FAME AND CHICK-FIL-A FAN EXPERIENCE
PRESIDENT’S REPORT E
WILLIAM PATE PRESIDENT & CEO
CHINA MARKET BRIEFING U.S.-China Leadership Summit 2016 Michael Merner, Managing Director, Asia Brand USA
China’s Socioeconomic Transformation
● RAPID GROWTH IN HOUSEHOLD
SPENDING: up 9.2% in 2015 – China now has more billionaires than the USA and over 4 million millionaires, second only to the USA
● SOARING MIDDLE CLASS:
● 2010:
50 million
● 2015:
300 million (1/4 of China’s population)
● 2020:
600 million (1/2 of China’s population)
● RAPID URBANIZATION:
still represents only 54% of China’s population versus the 80% average in developed economies
Sources: China Daily; National Bureau of Statistics of China, McKinsey
7
Trend #1: Affluent Segment Trend
• UPPER MIDDLE CLASS & AFFLUENT SEGMENTS: will exceed 100 million households by 2020, each with over $24,000 in disposable incomes • GROWTH: current spending growth rate for this high-spend segment is 17% annually versus 5% for the emerging-middle-class
• IMPORTANCE: will account for 81% of China’s incremental consumption growth through 2020 • SPEND CATEGORIES: the three top spending categories for this segment: food, education and travel • LOCATION: by 2020, 46% of affluent Chinese consumers will live in China’s Tier 3 cities
Sources: China Daily; National Bureau of Statistics of China; Boston Consulting Group
8
CHINA OUTBOUND MARKET UPDATE
Preferred Leisure Activities of China's Middle & Upper Classes 56%
TRAVEL
39%
Reading
28% 23%
Tea Tasting Family Time
15% 13% 11% 9% 8% 8% 8%
Driving Spa Petsitting Wine Tasting Photography Karaoke Fishing Foot Massage
Yachting/Sailing Games Cigar Appreciation Source: Brand USA research
4% 4% 2% 1% 14
China Outbound Travel Market (MILLIONS)
133
2016
Source: CNTA
15
China Outbound Travel Market Growth 2012
83 Million — 6% of China’s population
2013
97 Million — World’s #1 source market
2014
115 Million – Double 2010 levels
2015
120 Million — 9% of China’s population
2020*
250 Million — 14% annual growth
* WTO Estimate Source: CNTA
16
China Overseas Travel Destinations The USA is the only long-haul destination among China’s Top-10 destinations
90% 3%
ASIA
AMERICAS
3% EUROPE 3%
AFRICA
1%
OCEANIA
Source: Brand USA research; Travel Pulse
17
Chinese Travel Spending Trends SPEND PER TRIP
TRAVEL SPEND
$7,500 spend per person
China’s middle and upper classes spend 19% of their annual salaries on overseas travel — dramatically more than any other source country
per trip to the USA -makes Chinese the highest spending visitor group per person per trip to the USA
LUXURY SPEND 75% of Chinese tourists purchase more than 3 luxury items per trip
Source: Brand USA research; McKinsey Consulting
GLOBAL FORCE Chinese tourists make up 25% of global spending on luxury goods
20
CHINESE TRAVEL TO THE USA
% of Chinese Travelers Aspiring to Travel to the USA Percentage of intercontinental travelers* who include the USA on their destination wish list
60% 50%
41%
21%
21%
Mexico
Russia
30%
31%
Japan
Canada
34%
France
42%
52%
45%
37%
India
Germany Australia
UK
Brazil
Korea
CHINA
Source: Brand USA Global Intelligence Program and PhoCusWright, Inc.
23
Likelihood to Visit – Next 6 Months (2015 Research) United States
27%
Australia
18%
France
16%
New Zealand
15%
United Kingdom Brazil
14% 11%
Italy
10%
Switzerland
10%
Canada
10%
Question: When, if ever, are you likely to visit the following countries? Base: China intercontinental travelers (2014 N=1,002, 2015 N=975) Source: Brand USA Market Intelligence Study
24
Chinese Visitors to the USA
•
As of March 2016, Chinese arrivals are up 16.8% YOY • Tied for 2nd place with South Korea for the strongest growth in 2016 of all U.S. markets • China has soared up the rankings to #4 in terms of overseas arrivals and spending in the USA and is projected to rise to become our top overseas source market within 6 years • By 2021, Chinese arrivals will exceed Germany, France & Australia combined
* Estimate Sources: National Travel and Tourism Office
2003
Under 200,000
2012
1.4 Million
2013
1.8 Million (+23%) #5 overseas market
2014
2.2 Million (+22%) #4 overseas market
2015*
2.5 Million (+17%)
2016*
3.0 Million (+16%)
2017*
3.4 Million (+15%) #3 overseas market
2018*
3.9 Million (+15%) #2 overseas market
2021*
6.3 Million
#1 overseas market
25
China Market Recap: Alignment of Key Factors ● Market Size: massive market size of 1.35 billion ● Market Growth: China's population has grown by the entire population of Australia
in 5 years ● Economic Growth: second largest economy in the world after the USA with
willingness to spend on travel soaring ● Disposable Incomes: Chinese incomes growing at 10% per year ● FX Rate: RMB pegged to the U.S. dollar
● Chinese Desire to Travel: travel is the most desired leisure pursuit for 56% of
middle and upper-class Chinese ● Willingness to Spend: Chinese are the No. 1 spending international visitors to the
USA with 19% of disposable incomes spent on travel on average ● China Outbound Travel Growth: 120 million outbound in 2015 -- world’s # 1
outbound market, with 133 million projected in 2016 ● Potential: less than 9% of China's population is traveling overseas – versus 25%
for Korea ● Growth: Number of Chinese outbound travelers is projected to more than double
in the next 5 years to 250 million Source: Brand USA China research; CNTA
45
Key Factors Driving Chinese Arrivals to the USA ● Tiny USA Market Share: 0.15% of China’s population and 2% of Chinese outbound
travelers ● US Destination Satisfaction: the USA tops the list of most satisfying destinations for
Chinese ● Positioning: the USA has the highest intent to visit of any long-haul destination ● Streamlined US Visa Interview Process: under 5 days with 10-year visa now
available ● Growth in Airlift: massive continuing increases in lift from China to the USA ● Booming Online and Social Media Channels: 700 million netizens with 600 million
via mobile ● Exploding Secondary Markets: over 100 cities with populations of over 1 million ● Booming FIT: with massive growth potential beyond the traditional USA gateways ● Rapid Growth of MICE Market: Perfect China (7,000 pax) Amway (9,000 pax) ● Huge Growth in Niche Travel: golf, ski, study abroad, medical tourism etc.
● Spend: per visitor per day already leads all overseas markets ● Arrivals: #1 overseas market for the USA within 5 years
Source: Brand USA China research; CNTA
46
OLD BUSINESS E
NEW BUSINESS
ADJOURN