2014 Annual Report
LETTER FROM THE BOARD CHAIR F
or a variety of reasons, 2014 was a busy year for tourism in the Interior. It was likewise a busy year for the team at Explore Fairbanks. I’d like to highlight just a few of the things that took place while I served as Chair of the 2014 Explore Fairbanks Board of Directors. The most visible change was the transition of the organization name from Fairbanks Convention & Visitors Bureau to the more succinct and contemporary “Explore Fairbanks.” This change involved everyone in the organization from the Board on down and, complete with an exciting new logo, will help better position Fairbanks in the very competitive destination marketplace. Along with the corporate rebranding, the team at Explore Fairbanks undertook exciting redesigns of a number of collateral pieces used to market the Fairbanks area and launched a new destination video at the annual Alaska Travel Industry Association Convention in October here in Fairbanks. I’m especially proud that after working hard for a number of years to satisfy a series of rigorous standards, Explore Fairbanks achieved accreditation from Destination Marketing Association International in 2014, the first destination marketing organization in Alaska to do so. These are just a few of the many exciting things that happened in 2014 and this Annual Report will give you the complete picture of all that the organization undertakes on a daily basis. Deb and her staff accomplished many great things in 2014 and I look forward to continuing to see bigger and better things in the future. Paul Brown Santa Claus House
LETTERS FROM THE MAYORS Explore Fairbanks
continues to serve a vital role for Interior Alaska and our Golden Heart City. They provide visitor information, actively market Fairbanks, and work to attract meetings and conventions. Increasing visitor numbers speak to the success of Explore Fairbanks. Extremely encouraging for Fairbanks is the number of flights numerous airlines are scheduling each year, a product of the work Explore Fairbanks has accomplished. Explore Fairbanks has outstanding, proactive directors and employees. They are progressive and creative. They are of immeasurable value to our community. The Explore Fairbanks greeters and staff always go the extra mile to make sure every event is a success. Congratulations, Explore Fairbanks, on another great year and thanks for all you do for us! John Eberhart, Mayor City of Fairbanks
O
n behalf of the residents of the Fairbanks North Star Borough, we would like to extend our heartfelt thanks for another great year of services to enhance our community! There are many, many events, both large and small that Explore Fairbanks participates in that enhance our community. Conducting media tours, greeting visitors, as well as providing information to the independent traveler and to out-of-state meeting coordinators, Explore Fairbanks gives the extra special touch to make everyone feel welcome. This is what makes our community a very special place like no other! If you have not had an opportunity to see the new destination video, we invite you to do so: www.explorefairbanks.com. Thank you Explore Fairbanks for another great year and for showcasing our community! Luke Hopkins, Mayor Fairbanks North Star Borough
New Explore Fairbanks Name and Logo Launched during the Seventh Annual Interior Tourism Conference on February
The City of North Pole is
pleased to congratulate Explore Fairbanks on another successful year of marketing the Interior of Alaska. Explore Fairbanks serves a vital role in our community by marketing our natural and visual wealth to the world and has exemplified their ability with a new marketing video showcasing the community with the talented local artists, Young Fangs. The efforts of Explore Fairbanks are evident by the determination to bring conferences, meetings and tourists from all over the world into the Interior. What makes these events, activities and experiences so memorable and successful is the dedication to the quality of work and the meticulous attention to detail by all Explore Fairbanks staff and volunteers. Explore Fairbanks has made it easier for foreign guests to visit and will have a lasting positive effect on our community and state. Congratulations and compliments on another great year of marketing the Interior of Alaska. Bryce Ward, Mayor City of North Pole
12th, the newly-designed Explore Fairbanks logo incorporates graphics to symbolize the aurora borealis and midnight sun, two key natural phenomena that distinguish the Fairbanks region, including the Interior and the Arctic, from most destinations around the globe. The more succinct and contemporary name will assist in promoting the Fairbanks region in the competitive destination marketplace. The Fairbanks Convention and Visitors Bureau (FCVB) already had brand equity in “Explore Fairbanks” with nearly two decades of incorporating this term into the organization’s website and email addresses. In order to be cost efficient, the FCVB gradually implemented the change into marketing materials and promotions during the year. The bureau retains the same federal tax identification number and non-profit corporate status. Legal documents will be executed under Fairbanks Convention and Visitors Bureau dba Explore Fairbanks.
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TOURISM
Expanding Domestic and International Horizons
During 2014, the Explore Fairbanks Tourism team attended eight domestic consumer and travel trade shows and 12 inter-
national trade shows and sales missions. They traveled to 30 different cities and some of the top travel and trade shows in the world to include domestic shows such as the American Bus Association Marketplace, the National Tour Association Travel Exchange, International PowWow and the GoWest Travel Summit; and international shows such as the International Travel Bourse in Berlin, the Taipei International Travel Fair in Taiwan, the Japanese Association of Travel Agents World Fair in Tokyo and the Mid-Atlantic Tradeshow in Iceland. These endeavors resulted in a total of 1,144 new or repeat contacts with AAA, travel agents and tour operators in 2014; as well as 524 leads sent to Explore Fairbanks industry partners. These leads put Explore Fairbanks partners in contact with qualified operators and agents who are seeking information for existing or new Fairbanks tour products.
Highlights • The Tourism Department hosted 18 familiarization (FAM) tours in the Fairbanks region—an 80% increase over 2013. While here, these groups experienced such things as river rafting, the Alaska Railroad, high-end fishing excursions, hot springs, Alaska Native culture, gold panning, flight-seeing tours, museums, ice art, aurora tours, local cuisine and breweries, and more. These FAMs introduced Fairbanks to more than 100 tour operators, travel agents and transportation representatives from around the world. • The department launched a Spanish-language website to target the growing Latin America audience, bringing the number of Explore Fairbanks foreign-language websites to five—German, Korean, Japanese, Chinese and Spanish.
• Explore Fairbanks hosted a Japan Airlines (JAL) Anniversary Celebration in recognition of ten years of charter services to Fairbanks on February 10th. The 19 JAL representatives in attendance included ten marketing, sales and operations personnel and nine flight crew.
FOR FAIRBANKS
TOURISM WORKS
• The department printed the 2014-2015 Fairbanks Group Tour Manual. Published every other year, the manual includes a variety of ideas and listings to provide travel trade professionals with the information necessary to build tours.
Annual bed tax collections have exceeded the 2008 peak numbers beginning in 2012 due to the steady growth in winter tourism in the Interior. During the winter of 2013-2014, Fairbanks’ bed tax revenue grew by 20 percent over the previous winter while remaining flat in Anchorage and Juneau. Explore Fairbanks compilation of hotel/motel tax collections and Alaska Department of Commerce, Community and Economic Development
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VISITOR SERVICES & MEMBERSHIP
Acknowledging Contributions of Individuals and Organizations On April 25th, the Explore Fairbanks annual banquet was held at Raven Landing Center. Members of the local visitor industry gathered to see awards presented as follows: the Golden Heart Award to Mary Richards of All Seasons Bed & Breakfast Inn, for her exceptional hospitality, commitment and effort to Fairbanks’ visitors; the Aurora Award to Premier Alaska Tours, Inc., for their contributions to the development of the Fairbanks visitor industry; the Jim and Mary Binkley Award to Just Short of Magic, for its creation, innovation, courage and entrepreneurialism in the introduction of a new attraction; and the Raven Award to Fairbanks 2014 Arctic Winter Games, for promoting a distinct local, statewide, national and international interest and awareness among prospective visitors. Ted Jones Jr. was given the Golden Heart Greeter of the Year Award for dedicating himself to helping make a visitor’s experience special and memorable. Previous Board of Directors’ Chair Matt Atkinson of Northern Alaska Tour Company received the Gold Pan Award for his exceptional contributions to the organization. Staff service awards included Susan McMahon for ten years of service and Ashley Ritenour, Karen Norris and Matt Hayes for five years of service.
Highlights • The 12th Annual Visitor Industry Walk for Charity on May 9th hosted 456 walkers. The event raised $19,257 for local 501(c)(3) charities. Since its inception, the walk has generated $295,682 for local nonprofits. Under the auspices of Explore Fairbanks and the Alaska Travel Industry Association (ATIA)-Fairbanks Chapter, this year’s walk was financially sponsored by the Alaska Cruise Association/Cruise Lines International Association-Alaska Chapter and the ATIA Foundation. • Visitor Services personnel greeted more than 114,000 visitors to the Morris Thompson Cultural and Visitors Center and staffed the summer-only center in Pioneer Park. Staff also stocked satellite centers at the Fairbanks International Airport and Alaska Railroad Depot. • Thirty-two year-round Golden Heart Greeter volunteers assisted with 29 conventions and community events, representing 274 hours of service.
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FOR FAIRBANKS
TOURISM WORKS
• The department organized and coordinated the Annual Interior Tourism Conference in Fairbanks in February. In attendance were 46 local businesses with multiple representatives from most of these businesses. The conference featured keynote speaker Steve Gutzler and focused on sales, emotional intelligence and customer service.
“Downtown Fairbanks spreads its wings on the first Friday of the month when throngs of art lovers fill the streets, eager to see locals’ exhibits in photography, painting, pottery and other fine arts.” Kristine Hansen AAA Go Magazine, August 2014
ADVERTISING & PUBLIC RELATIONS
New Destination Video and Branding Released In the spring, the Advertising and Public Relations team, in conjunction with the CEO, embarked on the new destination
video project. After RFPs were sent and received and ideas were generated, the team chose Gah! Films to create the video and Young Fangs, a local band, to be the musical accompaniment and featured in the video. A significant amount of time and effort was spent organizing, shooting and editing the video. The new Explore Fairbanks video was released to rave reviews on October 7th during the Alaska Travel Industry Association Convention in Fairbanks and had garnered 43,487 total views on YouTube by December 31. With the change of name and logo, the team also worked to create new advertising templates utilizing the new Explore Fairbanks logo and updated ad copy. All July issues of magazines and forward, with the exception of July’s Alaska Magazine, featured ads with the new look and logo placed in them. These new templates allow for greater flexibility in photo selection and allow use of multiple images to create a cross-sell or specific themed ad.
Highlights • The Advertising and Public Relations Department hosted 26 media tours including 40 media participants. • As a result of Explore Fairbanks’ nomination, the American Bus Association (ABA)—an association for motorcoach operators and tour companies—announced in September of 2014 that it had designated the Fairbanks Summer Arts Festival as a “Top 100 Event in North America” for the year 2015. • www.explorefairbanks.com website hosted 254,911 unique visitors and 1,158,294 total page views for the year. • Facebook “likes” were 51,000, a 360% increase over 2013 and exponentially growing with quality content and new Facebook advertising.
FOR FAIRBANKS
TOURISM WORKS
• Twitter followers finished the year at 4,120, a 22% increase over 2013.
The local travel industry has dubbed August 21 to April 21 as the “Aurora Season”—a key lure attracting visitors from the tail-end of summer through early spring, helping to bump the growth in the shoulder and winter seasons.
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MEETINGS & CONVENTIONS
All Hands On Deck for the 2014 Arctic Winter Games Explore Fairbanks staff took responsibility in a variety of roles prior to, during and after Games Week. In leadership roles,
Director of Visitor Services and Membership Charity Gadapee served as a member of the Board of Directors as well as Team Support Director overseeing Pin, Tourism and Transportation Committees; Director of Meetings and Conventions Helen Renfrew was Protocol Committee Chair; and President and CEO Deb Hickok volunteered as Environmental (Recycling) Committee Chair. Advertising & Marketing Associate Kasey Gillam was part of the Signage and Graphics and Merchandise committees; Executive and Tourism Coordinator Ashley Ritenour was an active volunteer for recycling efforts; and Convention Services Coordinator Allison Thompson assisted the Tourism Committee by compiling and delivering informational notebooks, acted as a local liaison for the Northwest Territory Youth Ambassador Group, volunteered with Gymnastics, Volunteer Care and Comfort, as well as Info Tables. Tourism Sales Manager Ed Malen volunteered with Security, the Opening Ceremony and Soccer. Internet Marketing Associate Sherman Hogue produced two recycling videos for the Environmental Committee. Visitor Information Specialist Colten Ritenour assisted with Participant Lounge, pre-Arctic Winter Games set-up and the Final Ceremony.
Highlights • Alaska Federation of Natives (AFN) wrap-up reports and materials were distributed to the AFN Board of Directors and others showcasing the work done by Explore Fairbanks and the community of Fairbanks to welcome our neighbors from around the state at the 2013 AFN Convention. The 2016 convention—in AFN’s 50th anniversary year—will return to Fairbanks. • The Golden Heart Gala on February 12th thanked 35 Golden Heart Greeters and 15 Meeting Ambassadors for their efforts in 2013. One hundred and ten guests and local officials were in attendance to celebrate the economic impact from meeting ambassadors which totaled $6,526,560 as well as 1,139 hours volunteered by Golden Heart Greeters in 2013.
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FOR FAIRBANKS
TOURISM WORKS
• Feasibility studies continued for a Convention Center/Performing Arts Center. Results of the Incremental Meeting Market Demand (IMMD) research commissioned in 2013 was unveiled to hotelier and other community stakeholders in the spring. After much consideration during the April retreat, the Explore Fairbanks Board of Directors determined that there was sufficient positive interest to continue exploring the options for a future convention center in Fairbanks.
“Some of our songs in Pavva have been passed down through many generations. Some are entirely new. I love dancing. I love cross-cultural dancing. If we lose these dances we lose our culture, but we have to keep adapting the dances, and ourselves, to modern times.” Sean Topkok of Fairbanks as quoted by Eric Lucas Alaska Airlines Magazine, July 2014
STATEMENTS OF FINANCIAL POSITION December 31, 2014 and 2013
Current Assets
FINANCE & ADMINISTRATION
Explore Fairbanks Achieves Accreditation On July 19th, the Destination Marketing
Accreditation Program (DMAP) approved Explore Fairbanks' application for accreditation. Director of Finance and Administration Dawn Murphy attended the Destination Marketing Association International Annual Conference to accept the award. To date, Explore Fairbanks is the only tourism bureau in Alaska to attain the accreditation. DMAP’s globally recognized accreditation serves as a visible industry distinction that defines quality and performance standards in destination marketing and management. “By applying for and receiving DMAP accreditation, Explore Fairbanks has demonstrated a commitment to quality programs and services,” said Jack Wert, DMAP Board Chair. The rigorous accreditation standards set by DMAP cover a wide variety of topics including governance, finance, management, human resources, technology, visitor services, group services, sales, communications, membership, brand management, destination development, research/market intelligence, innovation and stakeholder relationships. Achieving DMAP accreditation as a Destination Marketing Organization (DMO) is a valuable recognition that assures business partners, stakeholders and potential visitors that the DMO has reached a significant measure of excellence. Explore Fairbanks Board of Directors, management team and other team members worked hard together for a number of years to satisfy the rigorous standards set forth by the professional destination marketing community.
Highlights • President and CEO Deb Hickok led the charge on the Arctic Winter Games Fairbanks 2014 Legacy Recycling Project. The project saw the installation of 44 recycling bins at facilities such as Pioneer Park, Birch Hill Recreation Area, area schools and more. • The “Tourism Works for Alaska” supplement, conceived of, developed and coordinated by Explore Fairbanks, was inserted into the Sunday, October 5th issue of the Fairbanks Daily News-Miner and into more than 470 delegate bags at the Alaska Travel Industry Association’s Annual Convention.
2014
2013
Cash Receivables Accounts and grants receivable, less allowance for doubtful accounts of $-0- and $-0Inventory Prepaid expenses Total current assets
$ 686,529
$ 428,412
221,356 78,170 175,322 1,161,377
114,760 70,254 213,612 827,038
Property and Equipment
285,749 182,552 103,196 1,264,574
573,299 449,785 123,514 950,551
140,648 64,993 57,633 144,470 407,744
54,427 550 66,317 15,527 91,332 228,152
103,196 208,578 256,000 289,056 856,831 $1,264,574
123,514 269,980 240,000 88,904 722,398 $950,551
Less accumulated depreciation Total assets
Current Liabilities
Accounts payable Conference Fees 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
STATEMENT OF ACTIVITIES
Years ended December 31, 2014 and 2013
Revenues, Gains and Other Support
2014 2013 Hotel/motel contribution from City of Fairbanks $ 1,708,352 $1,640,453 1,114,894 1,009,180 Grants from Fairbanks North Star Borough 3,501 2,349 Hotel/motel contribution from City of North Pole Fairbanks International Airport contract 15,000 15,000 Program income: Advertising and Public Relations 129,264 134,939 Visitor Services 5,480 11,335 Tourism 99,965 72,393 Meetings and Conventions 28,866 48,630 Membership 145,682 119,837 Total revenues, gains and other support 3,251,003 3,054,117
Expenses
Programs Advertising and Public Relations Visitor Services Tourism Meetings and Conventions Membership General Administration Total expenses
1,121,833 472,950 505,103 320,361 199,274 496,748 3,116,269
1,189,399 495,972 476,862 373,483 159,023 490,519 3,185,256
134,735
(131,139)
Loss on disposal of fixed assets Change in net assets
(302) 134,433
0 (131,139)
Net Assets, January 1 Net Assets, December 31
$722,398 $856,831
$ 853,538 $ 722,398
Increase (decrease) in unrestricted net assets before non-operating activities
Non-Operating Activities
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EXPLORE FAIRBANKS 2014 STAFF Deb Hickok President and CEO Dawn Murphy Director of Finance and Administration Corinne Jankowski Administrative Coordinator Judy Dellinger Executive and Finance Coordinator Amy Geiger Director of Communications Heather Fries Public Relations Manager Kasey Gillam Advertising and Marketing Associate Sherman Hogue Internet Marketing Associate Angie Cerny Branding and Production Coordinator Helen Renfrew Director of Meetings and Conventions
2014 BOARD OF DIRECTORS Paul Brown Dustin Adams Matt Divens Kory Eberhardt Matt Atkinson Deb Hickok Karen Lane Patricia Silva Ryan Binkley Debbie Mathews Andy Anger Mok Kumagai Becky Kunkle June Rogers Barb Shumate Jason Avery Van Lawrence Jim Matherly
Santa Claus House Chair Regency Fairbanks Hotel Chair Elect HAP Alaska-Yukon Treasurer A Taste of Alaska Lodge Secretary Northern Alaska Tour Company Past Chair Explore Fairbanks President & CEO Fairbanks 2014 Arctic Winter Games Westmark Fairbanks Hotel & Conference Center Riverboat Discovery and Gold Dredge 8 Expressions in Glass University of Alaska Community & Technical College Aurora Borealis Lodge Wedgewood Resort, Fountainhead Hotels Fairbanks Arts Association Premier Alaska tours Pioneer Park, Parks and Recreation Fairbanks North Star Borough Ex Officio Fairbanks City Council Ex Officio
Allison Thompson Convention Services Coordinator Scott McCrea Director of Tourism Ed Malen Tourism Senior Sales Manager Ashley Ritenour Tourism Sales Manager Elke Brosin European Contractor Charity Gadapee Director of Visitor Services and Membership Iwalani Lauver Manager of Visitor Services and Membership Visitor Information Specialists Evie Huston Colten Ritenour Shelly Smith Susan McMahon Matt Hayes Karen Norris Nicole Dufour Julia Parzick Nathan Cagwin Joanna Wallace Bob Eley Gayle Myers Jennifer Jolis Visitor Information Volunteers Hollis Hall Neil & Fay Shouse 32 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