2018 ANNUAL REPORT
Letters from the
MAYORS
On behalf of the residents of the Fairbanks North Star Borough, we extend our warmest thanks to Explore Fairbanks for another great year of marketing our community to the world!
2018 Board of
DIRECTORS
Andy Anger, Chair
University of Alaska Fairbanks Community & Technical College
The numbers tell part of the story: 39 Golden Heart Greeters who assisted with two dozen events and contributed almost 400 hours of service; assistance to 37 events with 33 bookings worth $3,746,880 in estimated direct attendee spending; explorefairbanks.com showed a 43% increase in unique visitors over 2017; and follower increases across the board for Facebook, Twitter and Instagram.
Kathy Hedges, Chair Elect
Explore Fairbanks continues to provide excellent marketing, tourism and visitor industry services year-round. Dollar for dollar, the investment that we make in Explore Fairbanks reaches so many far and wide. We congratulate Explore Fairbanks for another great year and look forward to seeing the positive impact on the Golden Heart City!
Ashley Bradish, Treasurer
Bryce J. Ward, Mayor Fairbanks North Star Borough
1st Alaska Tours
Arctic Circle Trading Post
Kory Eberhardt, Past Chair A Taste of Alaska Lodge
Gold Dredge 8 and Riverboat Discovery
Ralf Dobrovolny, Secretary Deb Hickok, President & CEO
Each year Explore Fairbanks exceeds expectations with their contributions to the City of Fairbanks! With over 161,000 visitors to the Morris Thompson Cultural and Visitors Center, their efforts in assisting all tourists that come to Fairbanks is astounding. In addition to their extensive work promoting Fairbanks to tourists all over the world, the local economy is boosted by the numerous events that they work diligently to hold here each year. With their new Aurora and Midnight Sun Tracker, as well as beautiful and creative photography and 360-degree media, Explore Fairbanks’ social media presence continues to grow. Their website is just a joy to explore…Fairbanks has never looked so good! These professionals continue to represent Fairbanks in the best way possible, highlighting Fairbanks’ unique and beautiful attributes to visitors and residents, and we can’t wait to see what you do in 2019! Thank you, Explore Fairbanks! Jim Matherly, Mayor City of Fairbanks
Explore Fairbanks
Kristin Baysinger Carlson Center
Patricia Silva
Westmark Fairbanks Hotel & Conference Center
Buzzy Chiu
Premier Alaska Tours
Mike Hajdukovich Trax Outdoor Center
Becky Kunkle
Wedgewood Resort, Fountainhead Hotels
Explore Fairbanks serves a dynamic role in our community by promoting our natural, historic and cultural wealth to the world. Their efforts are manifest by the number of conferences, media and tourists that come to Fairbanks, North Pole and Interior Alaska. Explore Fairbanks staff and volunteers showcase events, activities and experiences that bring recognition and visitors to our corner of the world. North Pole enjoys welcoming guests to our community and appreciates the boost to our local economy, as well as the energy and excitement the visitor industry offers. Michael Welch, Mayor City of North Pole
Heather Dudick Alaska Railroad
Adriel Butler
Aurora Expeditions
Deborah Hansen
Pike’s Waterfront Lodge
Theresa Bakker
University of Alaska Museum of the North
Jess Pena
Fairbanks Arts Association
Message from the Board
CHAIR
Persistence and forward thinking continued to be the underlying themes driving Explore Fairbanks in 2018. The competition never sleeps. The markets constantly evolve and new opportunities arise. In order to stay on top of the game, one has to have a finger on the pulse of the market, the insight and understanding to judge correctly which opportunities are feasible for the organization, and the ambition and persistence to succeed in capturing these opportunities. As you read this report, you will find many examples, that showcase how Explore Fairbanks’ reaction to new trends and the development of new strategies to capture the changing markets are paying off. Thank you, Explore Fairbanks staff for your tireless efforts, President and CEO Deb Hickok for exceptional leadership, our business and community partners for your continuous broad-based support, and fellow board members for direction and input in guiding Explore Fairbanks for the benefit of our community and the visitor industry. Andy Anger, Professor University of Alaska Fairbanks, Community & Technical College
Aaron Lojewski, Ex Officio Fairbanks North Star Borough
Jonathan Bagwill, Ex Officio Fairbanks City Council
The mission of Explore Fairbanks is to be an economic driver in the Fairbanks region by marketing to potential visitors and optimizing the visitor experience.
Growing
FAIRBANKS’
economy and infrastructure Bed Taxes Continue to Break Records
In 2018, the hotel/motel tax collections for the Fairbanks North Star Borough, including the cities of Fairbanks and North Pole, totaled $5,643,193, nearly a 6% (5.94%) increase over 2017. This is now the fourth record-breaking year in a row for collections.
The Morris Thompson Cultural And Visitors Center Celebrates 10 Years
After more than nine years of planning, Explore Fairbanks opened for business at the Morris Thompson Cultural and Visitors Center on September 26, 2008. In the past decade, the partners of the MTCVC have worked – and continue to work – hard to collaborate and to ensure that each partner succeeds. Inspired by the life and contributions of Morris Thompson, the MTCVC combines the resources and missions of these organizations to serve visitors and area residents alike.
Visitor Center Numbers Dramatically Exceed Previous Years
Explore Fairbanks Visitor Services staff greeted and provided customer service to 161,858 visitors at the Morris Thompson Cultural and Visitors Center in 2018. Compared to a total of 145,595 visitors in 2017, this is an increase of more than 11%.
16th Fairbanks Visitor Industry Walk for Charity Raises Money for Local Nonprofits
Held on Friday, May 11, 508 walkers raised $15,512. All proceeds were distributed to the 49 designated 501(c)(3) charities. Since inception in 2001, the Fairbanks-area Walk for Charity events have generated a total of $367,520 for local non-profit organizations.
Prior to 2018, Fairbanks had three record years of hotel/ motel tax collections: 2015 with just over a 5% increase; 2016 with nearly a 9% increase which broke the $5 million mark in collections for the first time; and 2017 marked a 2.6% increase.
Convention and Performing Arts Center Feasibility Study Begins Second Phase
Explore Fairbanks contracted with Johnson Consulting Group to prepare a financial plan and management/operating plan and budget for a proposed convention and performing arts center (CPAC) in downtown Fairbanks. Johnson Consulting, in partnership with Ascent, Bettisworth North, LMN Architects and JMB Consulting Group, is conducting the study. Collectively, the team brings many years of experience working on hundreds of similar assignments. This project dovetails with the City of Fairbanks’ Polaris Work Group lead by Council Member David Pruhs. In addition to coordinating meetings on an on-going basis, Explore Fairbanks contributed $15,000 of the $36,414 raised by 32 community-based entities—including 17 private-sector businesses, two non-profits and 13 individuals—to enable the City of Fairbanks to take ownership of the Polaris building during the tax foreclosure process. Since 2008, Explore Fairbanks has collaborated with the Fairbanks Arts Association on the CPAC project. This is the thrid study on the CPAC that Explore Fairbanks has commissioned in the past decade.
Pursuing
EXCELLENCE— locally,
Contract Signed with China-Based East West Marketing Corp
During Governor Bill Walker’s “Opportunity Alaska” China Trade Mission in May, Explore Fairbanks signed a contract with East West Marketing Corp to represent Explore Fairbanks in the rapidly growing China-to-Alaska outbound tourism market. The firm will conduct sales calls and develop travel trade relations in China’s major cities, coordinate tourism sales missions for Explore Fairbanks and Alaska visitor industry partners, provide airline development support, assist with planning familiarization tours for China-based travel trade and media to come to Fairbanks, and conduct marketing campaigns through China’s social media channels Weibo and WeChat. Explore Fairbanks is the first destination marketing organization in Alaska to have travel trade representation in the China Market.
Grant Awarded to Develop Air Service and Better Serve Visitors and Residents
On July 12, 2018, U.S. Transportation Secretary Elaine L. Chao announced a $750,000 grant awarded to Fairbanks International Airport to help improve airline service. The U.S. Department of Transportation’s Small Community Air Service Development Program offered a total of $9.925 million in grants to help small communities develop their own solutions to local air service needs. The department received 53 applications from 35 states; Fairbanks is one of 16 communities across the country receiving a grant. The grant will provide a revenue guarantee and marketing incentives to secure and support new non-stop flights between Fairbanks and San Francisco, a hub not currently servicing Fairbanks. Explore Fairbanks has taken the lead in marketing the flights and coordinationg the community’s and tourism contributions to the grant match.
Explore Fairbanks Receives Adventure Green Alaska Certification
This certification in January marks Explore Fairbanks as the first, and currently only, destination marketing and management organization in Alaska to be certified. Adventure Green Alaska is the sustainable tourism certification program for tourism businesses operating in Alaska.
nationally and world-wide
Pursuit of Excellence in Internal Operations
Heralding 2017 into 2018 as the “Year of Procedures,” the Explore Fairbanks team prepared a nearly 500-page Procedures Manual for submission for re-accreditation through Destinations International. The handbook is a fluid document that will serve as a legacy manual for future employees, as well as a guide for current employees. The Explore Fairbanks team continued to work internally with the theme “Teamwork Makes the Dream Work” for mid-2018 to mid-2019, further heightening Explore Fairbanks’ reputation of working as a team with each other and with community partners.
Tourism Works for Fairbanks Video Produced
Completed in August, the educational “Tourism Works for Fairbanks” video outlines the positive borough-wide economic impact of the travel industry. The video is uploaded to YouTube and on the Explore Fairbanks website. The two-minute video talks about direct and indirect spending, the growth of winter tourism, employment and property tax impact.
360-Degree Videos and Stills Produced
360-degree videos and stills were commissioned for use on the website and social media, capturing aurora viewing, midnight sun and other activities. A two-minute teaser video was unveiled at the Alaska Travel Industry Association’s Annual Convention in October. A custom layout to showcase the 360-degree videos and stills at explorefairbanks.com/360 was also created.
Keep Calm and Explore On
Explore Fairbanks honored its industry partners at the annual banquet in April. The Golden Heart Award went to Bob Eley, Fairbanks Community Museum. The Aurora Award went to the Alaska Railroad. The Jim and Mary Binkley Award went to Sean Kurdziolek Portraits and Gallery. The Raven Award went to Midnight Sun Run. The 2018 Fairbanks Tourism Hall of Fame inductee was Ed Peebles of Warbelow’s Air Ventures.
BIG IDEAS
in marketing and outreach
By the NUMBERS
Explore Fairbanks Launches Award-Winning Aurora and Midnight Sun Tracker
Sales Leads and Service Requests
In January, Explore Fairbanks unveiled the Aurora and Midnight Sun Tracker as an addition to the Explore Fairbanks website. The Aurora Tracker correlates three data feeds to determine aurora viewing possibilities and the Midnight Sun Tracker calculates the number of daylight hours 365 days a year. This mechanism is a one-of-a-kind digital invention created to aid travelers in the Fairbanks region. To date, the Tracker page is second to the homepage in website popularity. The North American Travel Journalists Association (NATJA) announced that Explore Fairbanks won the Silver Award in the 2018 NATJA Awards Competition for the Aurora Tracker in the Big Idea category. This awards competition, now in its 27th year, honors the best of the best in travel journalism, photography and destination marketing that cover all aspects of the travel industry.
Appealing to the Cruise Traveler
Summer 2018 had several additions to capacity for one-way, cross-Gulf cruises, allowing passengers to opt for a land tour starting or ending in Fairbanks. Princess lines added an extra cruise into their rotation; Holland America replaced a ship with a larger vessel; and Windstar entered the market with several sailings. To promote Fairbanks as Alaska’s farthest north cruise port, the Tourism and Communications departments teamed up to produce a brand-new, eight-page Cruise-Land Tour publication.
Golden Heart Greeter Volunteers and Meeting Ambassadors Honored in 2018, the 2017 Golden Heart Greeter volunteers collectively donated 1,078 hours of volunteer service at various community events, including the Arctic Council Ministerial Meeting. The 2017 Golden Heart Greeter Volunteer of the Year was awarded to Hilda MacDonald; Hilda was also presented with a pin for achieving a cumulative total of 225 Golden Heart Greeter volunteer hours. The 594 meetings brought to the Fairbanks community by Explore Fairbanks and their partners in 2017 had a combined estimated direct attendee spending of more than $9.2 million. The 29 meetings brought to Fairbanks due to the efforts of Golden Heart Meeting Ambassadors contributed more than $2.9 million in estimated direct attendee spending to the area.
Meetings and Conventions issued 54 sales leads and assisted with 11 service requests—providing in-person assistance to 37 events in Fairbanks and generating 33 bookings worth $3,746,880 million in estimated direct attendee spending.
FAM and Media Tours
The Tourism Department hosted 18 international and domestic familiarization tours for 71 travel trade representatives. Media Relations hosted 38 media tours with 60 participants.
Tradeshows and Sales Missions
Tourism participated in 21 international trade shows having contact with more than 1,800 travel trade representatives and media and attended four domestic trade shows connecting with 311 tour operators and travel agents.
Press Releases
Explore Fairbanks issued 24 press releases to more than 43,333 media contacts and answered 337 media inquiries.
Online Presence
The www.explorefairbanks.com website hosted 341,014 unique visitors, with total page views reaching 1,113,566—a 43% increase over 2017. FACEBOOK: 229,252 TWITTER: 6,433 INSTAGRAM: 11,800
UP
13% UP
10% UP
88%
Statement of
FINANCIAL POSIT ION December 31, 2018 and 2017
Current Assets
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
2018
2017
$ 1,696,727
$1,496,191
275,246 77,124 236,483 2,285,579
211,462 70,799 219,617 1,998,068
380,651 314,422 66,229 2,351,809
375,801 269,463 106,338 2,104,406
56,459 92,989 3,738 138,310 291,496
83,971 81,469 26,421 138,978 330,838
Net Assets – Unrestricted
Without donor restrictions Investment in property and equipment Board designated for subsequent years Board designated working capital reserve Undesignated With donor restrictions Total net assets
Explore Fairbanks
2018 STAFF Deb Hickok
Helen Renfrew
Dawn Murphy
Iwalani Lauver
President and CEO
Director of Meetings and Conventions
Director of Finance and Administration
Sales and Services Associate
Alanna McBrayer
Charity Gadapee
Administrative Coordinator
Judy Dellinger
Executive and Finance Coordinator
Amy Geiger
Director of Communications
Kasey Gillam
Assistant Director of Communications
Jerry Evans
Public Relations Manager
Karen Wilken/Bill Wright
Internet Marketing Manager
Angie Cerny
Branding and Production Coordinator
Scott McCrea
Director of Tourism
Ed Malen
Tourism Senior Sales Manager
Tyler Chiles
Director of Visitor Services and Partnership Development
Jesse Pfeffer
Manager of Visitor Services and Partnership Development
Bob Eley, Joe Ortis, Sheri Karikomi, Julia Parzick, Brenna Schaake, Sam Urban, Jennifer Wei, Scott Wiser Visitor Information Specialists
Susan McMahon Leo & Colleen Zeek
Visitor Information Volunteers
39 Golden Heart Greeter Volunteers Elke Brosin European Contractor
East West Marketing China Contractor
Tourism Sales Associate
66,229 106,338 607,000 391,928 629,000 593,450 751,190 681,852 6,893 2,060,312 1,773,568 $2,351,809 $2,104,406
Statement of
ACT IVIT IES December 31, 2018 and 2017
Revenues, Gains and Other Support
2018 2017 Hotel/motel contribution from City of Fairbanks $ 2,219,949 $ 2,037,413 1,329,930 1,157,076 Grants from Fairbanks North Star Borough 12,086 14,023 Hotel/motel contribution from City of North Pole Fairbanks International Airport contract 11,262 15,000 Miscellaneous income 30,477 5,200 Net asset reclassification (6,893) Program income, including in-kinds: Communications 153,055 171,113 Visitor Services 1,379 2,286 Tourism 133,165 117,997 Meetings and Conventions 15,584 14,273 Partnership Development 186,100 161,601 Total revenues, gains and other support 4,086,095 3,695,981
Expenses
Program expenses, including in-kinds: Communications Visitor Services Tourism Meetings and Conventions Partnership Development General Administration Total expenses Increase (decrease) in unrestricted net assets without donor restrictions
1,378,387 434,516 680,953 460,519 227,962 623,908 3,806,243
1,265,838 458,853 605,740 388,014 217,110 564,243 3,499,798
279,851
196,755
Changes In Net Assets With Donor Restrictions Net asset reclassification Increase (decrease) in net assest with donor restrictions 101 Dunkel Street, Suite 111 | Fairbanks, AK 99701-4806 (907) 457-3282 Marketing OfďŹ ces | (907) 456-5774 Visitor Information www.explorefairbanks.com
Change in net assets
Net Assets, January 1 Net Assets, December 31
6,893
-
6,893
-
286,744
196,755
$1,773,568 $ 1,576,813 $2,060,312 $1,773,568