2012 ANNUAL REPORT
LETTER FROM THE BOARD CHAIR
reassessing our mission statement and reevaluating our short-term and long-term strategies. As you will see in the 2012 Annual Report, the team at FCVB had significant successes in fulfilling the strategies we set out for 2012. Tops among them was Fairbanks being named #2 of the top ten destinations to visit in the United States by Lonely Planet, securing the AFN Convention in Fairbanks in 2013 and, after nine years of effort, hosting the very successful 85th Annual Conference for the Outdoor Writers Association of America (OWAA) for the first time in Alaska. The 2012 accomplishments are too numerous to mention here so I urge you to thoroughly read this year’s annual report. FCVB does an outstanding job supporting industry partners as well as contributing significantly to the betterment of the community, making Fairbanks and the region a great place to live, work and visit. As was my custom when chairing the 2012 board meetings, I offer this quote from Teddy Roosevelt – “Far and away the best prize that life has to offer is the chance to work hard at work worth doing.” Being involved with the staff and board of FCVB for the last ten years has provided that prize for me. I am honored to have served as the chair the past year. Sincerely, Buzzy Chiu Bridgewater Hotel – A Fine Fountainhead Hotel
LETTERS FROM THE MAYORS T
he Fairbanks Convention and Visitors Bureau (FCVB) serves a vital role for the Interior of Alaska. They not only provide visitor information, but actively market Fairbanks and work at attracting conventions. Increasing visitor numbers are a testimony to their success. FCVB excels at aiding and hosting events. It does not matter if the events are large, like the Alaska Federation of Natives, or small with just a few people—they are there to help. The Morris Thompson Cultural and Visitors Center that serves as their home is not only inviting for visitors, it is an exciting place to visit the fabulous displays with a staff that is ready to assist. Jerry Cleworth, Mayor City of Fairbanks
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he City of North Pole is proud to congratulate the Fairbanks Convention and Visitors Bureau (FCVB) on another successful year of marketing the Interior of Alaska. FCVB serves a vital role in our community by marketing our natural and visual wealth to the world. The efforts of FCVB are evident by the increased number of visitors to the Morris Thompson Cultural and Visitors Center and the number of events they host each year. What makes these events and activities so successful is the dedication to the quality of work and the meticulous attention to detail by all FCVB staff and volunteers. The efforts of FCVB have been a major contributor in our top ten statuses in several travel publications. Congratulations and compliments on another great year of marketing the Interior of Alaska. Bryce Ward, Mayor City of North Pole
Sherman Hogue/FCVB
At the beginning of each year the Fairbanks Convention & Visitors Bureau (FCVB) staff and board dedicate a day to
As Mayor of the Fairbanks North Star
Borough, I am proud to be in this great community. There are many factors that contribute to the vitality of our Golden Heart location. First and foremost it is FCVB. The staff has worked tirelessly for the past year and their efforts continue to bring us benefits. In 2012, 739 people helped raise more than $30,000 for local charities in the 10th Annual Visitor Industry Walk for Charity. We have seen a 17% increase in the number of visitors to the Morris Thompson Cultural and Visitors Center. On an international level, Japan Airlines and Korean Airlines have also brought more visitors to our community. I applaud the efforts of FCVB. It is also apparent they continue to look toward the future as they work on programs that will make our community a richer place to visit and to live in. Luke Hopkins, Mayor Fairbanks North Star Borough
Fairbanks Region Ranks Top Ten in Travel Media
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Todd Paris/FCVB
n December 2012, Lonely Planet announced its Top Ten destinations to visit in the United States in 2013. The leading travel guidebook publisher and website named Fairbanks #2—just behind Louisville, Kentucky. Another top honor came when Chena Hot Springs Resort together with the Chena River State Recreation Area was selected as one of the Ten Best 2013 Winter Trips worldwide by National Geographic. To round out the recognition, Los Angeles Times columnist Christopher Reynolds cited Fairbanks as one of the Top Ten places he would like to visit worldwide in 2013, saying, “Unfortunately, the skies are impossible to predict precisely, but Fairbanks is the favored starting point for many a northern lights itinerary.”
ADVERTISING & PUBLIC RELATIONS
Aggressive Media Relations Produce Results The Fairbanks Convention & Visitors Bureau and the Fairbanks community hosted the 85th Annual Conference for the
Outdoor Writers Association of America (OWAA) in September at Chena Hot Springs Resort. This was the first time that the organization has met in Alaska in its 85-year history and marked the culmination of nine years of effort by former FCVB Vice President of Marketing Karen Lundquist and Alaska-based OWAA media member Chris Batin to bring this group to Fairbanks.
Outdoor Writers Association of America
Around 100 media and an additional 100 supporting members and guests attended the conference. Many spent an average of seven to ten days exploring the Interior and the rest of Alaska. FCVB staff, partner tourism and community businesses and volunteers assisted with logistics prior to and during the conference, including coordination of the pre- and post-tour offerings and the 36-page guide book, the spousal tour program, Alaskaand Fairbanks-generated sponsorships, community night and other on-site staffing. We continue to collect resulting media coverage—for example a feature article on the Richardson Highway from Fairbanks to Valdez that appeared in the February 2013 issue of Trailer Life magazine.
OWAA field day at Chena Hot Springs Resort.
Highlights • Hosted 24 media tours with 46 participants. • Issued 19 press releases. • Attended four media marketplaces for face-to-face networking opportunities.
Website and Social Media
• Cision Media Monitoring Services reported 150 articles featuring the Fairbanks region in domestic magazines and newspapers having a total circulation of 22,846,958.
• www.explorefairbanks.com website hosted 211,121 unique visitors, a 24% increase over 2011 and total page views for the year were 1,071,568—a 23% increase.
ALASK A
Fairbanks
The Golde Heart City n
Fairbanks is the and recreation vibrant hub of cultur e in Alaska’s Interio r
By Eric Lucas
The oldest thoro ughfare in Fairbanks, Alask
K EN G R AHAM / A CC EN TAL
A SK A .CO M
a,is also the one, the slowest , the most interest broadest most aesthet ing and the ically appeali ng. I’m floating it now, on a lovely late-sum down mer afternoo the edges of n, with cottonwood and birch leaves ing the color turn of butter, the sun high, sandhil cranes winging l overhead on their own less leisurely journey s. but the experie My canoe may be fibergla ss, nce and atmosp and historic. here are timeless This is how humans have this route for traveled thousands of years. Yes, one does see houses along the Chena River—it winds its way through of Fairbanks, the very middle after all. “These are the newest luxury homes banks,” my in Fair guide, Amy Geiger, tells one particul me along arly suburba n stretch, lawns bracing two-story mini-ma with lush decks and picture nsions, the windows facing ward. When proudly waterI ask how much for such a house, she mention s a price that might be sufficien a small cottage t for home in my Seattle neighbo hood. - r The Chena rises 100 miles northeast of banks in the Fair low-lying White Mountains, range of what, a by Alaska standar hills than peaks, ds, are more where spruce river a tea-like forests lend the tinge by the time it swings through the city’s downto wn and loops bit to bend north a around Pioneer Park. That’s I’ve started where this afternoo n; I’ll end the 3.5-mile 118 OCT O BER
2012
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• Worked with local photographers Todd Paris and Ronn Murray to acquire exclusive new photographs of the Fairbanks area and popular community events.
• Number of returning visitors to www.explorefairbanks.com was 96,551—a 41% increase over 2011. • Facebook “likes” were 3,642—a 107% increase over and exponentially growing with Facebook advertising that began in late September. • Twitter followers increased to 2,873—a 19% gain from 2011.
The riverboat Discovery III prepares for a tour stop at a replica of a traditional Athabascan fish camp along the Chena River.
AG AZINE AG AZINE
OCT O BER
2012
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August visit by Eric Lucas resulted in an October article in Alaska Airlines Magazine.
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FCVB
FCVB honors the 2011 Fairbanks Meeting Ambassadors.
MEETINGS & CONVENTIONS
Bringing Home the Meetings, Conventions and Conferences In January, the FCVB hosted a reception honoring the 22 Fairbanks Meeting Ambassadors whose hard work was realized
when their events were held in 2011. These meetings brought over 1,500 people to town and injected over $1.16 million new dollars into our economy. In 2012, the 12 meetings that were invited to Fairbanks by Meeting Ambassadors accounted for more than $1.78 million worth of estimated direct attendee spending. The Meetings and Conventions Department continues to take the lead in FCVB’s efforts to bring the Alaska Federation of Natives (AFN) back to Fairbanks. They have coordinated interaction and planning with local stakeholder organizations, the AFN staff and the AFN board. Fairbanks was represented at the 2012 AFN Convention in Anchorage as a sponsor, with a vendor booth serving afternoon coffee and tea and at the banquet. At their December meeting, the AFN Board of Directors selected Fairbanks as the location for the October 24–26, 2013 Alaska Federation of Natives Convention.
Highlights • Hosted eight site inspections/familiarization tours and three in-state sales missions.
• Working in collaboration with the Fairbanks Arts Association, FCVB coordinated a trip from Convention, Sports and Leisure International (CSL) to meet with hotel owners and key management, public officials and art stakeholders in Fairbanks and Anchorage in mid-July 2012 as part of on-going research and dialogue on the feasibility of a convention center and/or performing arts center in Fairbanks. • More than 1,700 copies of the newest FCVB Meeting Planner Guide were sent to domestic meeting planners throughout the US.
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FAIRBANK FOR S
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The Interior added 800 jobs between 2008-09 (6,200) and 2011-12 (7,000). This 13% increase reflects the highest percentage increase in the state and is largely attributed to the growth in the air visitor market.
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• Contributed to the success of 20 events by playing a key role in bringing the meeting to Fairbanks and/or providing hands-on assistance.
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Source: Economic Impact of Alaska’s Visitor Industry May 2011–April 2012 prepared by the McDowell Group for the Alaska Department of Commerce, Community, and Economic Development, Division of Economic Development
TOURISM
Introducing Fairbanks to International Markets Japan Airlines saw an increase of seven direct summer charter flights in 2012, compared to four flights in 2011. From December 2011
through March 2012, Fairbanks saw a 4% increase of passengers with a total of 19 winter charters, as compared to 15 charter flights in 2011. Three new cities—Matsuyama, Okinawa and Kagoshima—were introduced as departure destinations to Fairbanks. In addition, Korean Airlines introduced four charters flying from Narita, Japan, to Fairbanks, capitalizing on the interest in aurora from Japanese guests.
© Ken Graham Photography
Another indicator of increased visitors is enplaning and deplaning numbers at Fairbanks International Airport. An increase of nearly 2% in deplanements and an increase of more than 2% in Fairbanks enplanements were seen. Continued service by Frontier Airlines, Condor Airlines and Japan Airlines has helped maintain an increase in visitation. The addition of seasonal United Airlines direct service from Denver to Fairbanks and Korean Airlines charter service contributed to the increase.
Fairbanks International Airport
Highlights
According to the Alaska Visitors Statistics Program
• Attended 16 travel trade and consumer shows.
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• Coordinated nine familiarization tours, hosting 59 tour operator and travels agent groups in the Fairbanks area to acquaint them with tourism products throughout the region.
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Interim Visitors Volume Report for Summer 2012, Fairbanks International Airport (FAI) had the largest increase of visitor volume compared to the major Alaska airports between summer 2011 and summer 2012 (+10%) as well as the five-year period between 2007-2012 (+9%). During this period, FAI increased capacity through Frontier and United flights operating out of the Denver hub.
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Source: Alaska Visitor Statistics Program, Winter 2011–2012 prepared by the McDowell Group for the Alaska Department of Commerce, Community, and Economic Development, Division of Economic Development
A Japan Airlines flight takes off from Fairbanks International Airport.
Fairbanks International Airport
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Fairbanks was the most visited community among fall/winter international visitors, attracting 64% of the total international market and 100% of the Japanese market.
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VISITOR SERVICES & MEMBERSHIP
Working Hard for Our Community With the help of the Alaska Travel Industry Association–Fairbanks Chapter, FCVB coordinated the 10th Annual Visitor Industry Walk for Charity. With 739 participating walkers (up from 600 in 2011), the 2012 Walk for Charity raised $30,542, with 100% of the donations distributed to 52 charities. Since its inception, the Charity Walk has raised nearly $250,000 for local 501(c)(3) nonprofits.
Princess employees pass out food to participants in the 2012 Visitor Industry Walk for Charity.
Highlights
Honoring Our Members
• Welcomed and provided customer service to 113,548 visitors at the Morris Thompson Cultural and Visitors Center—a 17% increase over 2011.
CVB recognized its members at the annual Member Award Banquet in April. Awards were presented to:
• 47 year-round FCVB Golden Heart Greeter volunteers donated a total of 304 hours of service, assisting with 26 conventions, community events, one-on-one Personal Greets and support for FCVB projects and events.
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Leroy Zimmerman of PhotoSymphony Productions Golden Heart Award Warbelow’s Air Ventures and Northern Alaska Tour Company Aurora Award The Lodge at Black Rapids Jim and Mary Binkley Award Ice Alaska Raven Award
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Suzy Fischer of Riverboat Discovery & Gold Dredge 8 Gold Pan Award
FAIRBANK FOR S S RK The visitor industry
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provides unparalleled opportunities for local entrepreneurs to participate in the economic success of a basic industry at the ownership level. FCVB’s “cooperative” destination marketing program is currently supported by a membership of nearly 400 primarily small-business members.
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FCVB honors members at the annual Member Award Banquet in April.
Angie Cerny/FCVB
The Morris Thompson Cultural and Visitors Center welcomed 113,548 visitors in 2012.
FINANCE & ADMINISTRATION TOURIS M
• Successfully integrated all departments into one database—Simpleview—enabling greater efficiency and productivity in sales and marketing and accountability in metrics.
Source: Alaska Visitor Statistic Program, Summer 2011 prepared by the McDowell Group for the Alaska Department of Commerce, Community, and Economic Development, Division of Economic Development
• Worked successfully to gather community support to secure funding from the Fairbanks Metropolitan Area Transportation System Policy Committee for a downtown wayfinding project which was approved by the committee in June. • Led the team that developed the Gateway exhibit at the Morris Thompson Cultural and Visitors Center designed to encourage visitors to go out and explore the Fairbanks area, Interior and Arctic Alaska.
STATEMENTS OF FINANCIAL POSITION Current Assets
December 31, 2012 and 2011
Cash Receivables Accounts and grants receivable, less allowance for doubtful accounts of $-0- and $-0Inventory Prepaid expenses Total current assets
Property and Equipment Less accumulated depreciation Total assets
Current liabilities
Accounts payable Payroll liabilities Deferred income Unearned revenues Total current liabilities
Net Assets – Unrestricted
Investment in property and equipment Board designated for subsequent years Board designated working capital reserve Undesignated Total net assets
2012
2011
$ 527,390
$ 653,420
184,923 96,334 175,657 984,304
82,575 115,038 156,502 1,007,535
565,912 423,158 142,754 $ 1,127,058
564,874 397,432 167,442 $ 1,174,977
152,544 62,704 58,272 273,520
21,326 60,031 24,757 89,209 195,323
142,754 225,444 240,000 245,340 853,538 $ 1,127,058
167,442 410,000 264,000 138,212 979,654 $ 1,174,977
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The 325,000 visitors who came to Fairbanks in 2012 spent an average $354 per person in the community, totaling $115 million in direct expenditures (this figure does not include indirect spending or multipliers).
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Supporting Marketing Efforts Highlights
FAIRBANK FOR S
STATEMENT OF ACTIVITIES
Years ended December 31, 2012 and 2011
Revenues, Gains and Other Support
2012
2011
1,233,516 515,843 487,342 355,443 161,102 541,124 3,294,370
1,084,949 538,633 421,065 317,352 142,561 471,986 2,976,545
(125,255)
(92,249)
Loss on disposal of fixed assets Change in net assets
(861) (126,116)
(92,249)
Net Assets, January 1 Net Assets, December 31
$ 979,654 $ 1,071,903 $ 853,538 $ 979,654
Hotel/motel contribution from City of Fairbanks $ 1,540,706 $ 1,519,149 1,216,550 958,976 Grants from Fairbanks North Star Borough 3,696 4,237 Hotel/motel contribution from City of North Pole 15,000 30,000 Fairbanks International Airport contract Program income: 168,499 129,421 Advertising and Public Relations 12,047 10,728 Visitor Services 64,670 63,416 Tourism 23,223 37,084 Meetings and Conventions 124,724 110,213 Membership 108 Interest 20,966 Other 3,169,115 2,884,296 Total revenues, gains and other support
Expenses
Programs Advertising and Public Relations Visitor Services Tourism Meetings and Conventions Membership General Administration Total expenses Increase (decrease) in unrestricted net assets before non-operating activities
Non-operating Activities
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2012 FCVB STAFF Deb Hickok President and CEO Dawn Murphy Director of Finance and Administration Michelle Middleton Finance and Administrative Coordinator Ashley Ritenour Executive and Tourism Coordinator Corinne Jankowski Data Entry and Accounting Coordinator Amy Geiger Director of Communications Bill Wright Public Relations Manager Kasey Gillam Advertising & Marketing Associate Elisabeth Dabney Internet Marketing Associate Angie Cerny Branding and Production Coordinator Helen Renfrew Director of Meetings and Conventions
2012 BOARD OF DIRECTORS
Buzzy Chiu Matt Atkinson Matt Divens Terese Kaptur Suzy Fischer Deb Hickok Dustin Adams Paul Brown Kory Eberhardt Irene Fuchs Meyer Robert Hawkins Angelika Krinner Mok Kumagai Mary Richards June Rogers Patricia Silva John Davies Jim Matherly
Bridgewater Hotel Northern Alaska Tour Company HAP Alaska-Yukon Fairbanks Summer Arts Festival Riverboat Discovery & Gold Dredge 8 Fairbanks Convention & Visitors Bureau Regency Fairbanks Hotel Santa Claus House A Taste of Alaska Lodge GoNorth Alaska Travel Center Alaska Aerofuel Arctic Travelers Gift Shop Aurora Borealis Lodge All Seasons Bed & Breakfast Inn Fairbanks Arts Association Westmark Hotel and Conference Center Fairbanks North Star Borough Fairbanks City Council
Allison Thompson Conventions Services Coordinator
Chair Chair Elect Treasurer Secretary Past Chair President & CEO
Greg Allison Tourism Senior Sales Manager Ed Malen Tourism Sales Manager Karen Lane Vice President of Visitor Services & Membership Charity Gadapee Director of Visitor Services & Membership Iwalani Lauver Assistant Manager of Visitor Services & Membership Michael Farrell Visitor Information Coordinator
Ex Officio Ex Officio
Visitor Information Specialists Robin Barker Susan McMahon Taylor Frey Karen Norris Matt Hayes Colten Ritenour Yuki Kawano Shelly Smith Visitor Information Volunteers Hollis Hall Dale Yoder Neil & Fay Shouse 47 Golden Heart Greeters
101 Dunkel Street, Suite 111 • Fairbanks, AK 99701-4806 (907) 457-3282 Marketing Offices • (907) 456-5774 Visitor Information www.explorefairbanks.com facebook.com/ insidealaska
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