2023 & 2024 Newport Beach & Company Destination Business Plan by Visit Newport Beach

TABLE OF CONTENTS INTRODUCTION 04 05 06 09

EXECUTIVE SUMMARY NEWPORT BEACH & COMPANY OVERVIEW AND AUDIENCE OVERVIEW NEWPORT BEACH & COMPANY THREE-YEAR STRATEGIC PLAN NEWPORT BEACH & COMPANY COVID-19 RESPONSE & ACTION PLAN

AUDIENCE-BASED BUSINESS PLANS 22

LEISURE TRAVELER AUDIENCE BUSINESS PLAN

36 48

MEETING PLANNER AUDIENCE BUSINESS PLAN LOCAL COMMUNITY AUDIENCE BUSINESS PLAN

48 67

CORPORATE AUDIENCE BUSINESS PLAN DESTINATION RESEARCH, FORECASTS & BUSINESS INTELLIGENCE – LEISURE & MEETINGS

BUSINESS-UNIT PLANS 98 108 112 116 120 122

VISIT NEWPORT BEACH INC. - LEISURE MARKETING VISIT NEWPORT BEACH INC. - GROUP SALES DINE NEWPORT BEACH ENTERPRISE NEWPORT BEACH CELEBRATE NEWPORT BEACH VIDEO NEWPORT BEACH

GOVERNANCE 130 131 131 132 134 136 140

EXECUTIVE COMMITTEE & BOARD OF DIRECTORS TBID BOARD OF DIRECTORS MARKETING COMMITTEE NEWPORT BEACH & COMPANY TEAM NEWPORT BEACH & COMPANY ACCOLADES INDUSTRY TERMS REFERENCES

INTRODUCTION 04 EXECUTIVE SUMMARY 05 NEWPORT BEACH & COMPANY OVERVIEW AND AUDIENCE OVERVIEW 06 NEWPORT BEACH & COMPANY THREE-YEAR STRATEGIC PLAN 09 NEWPORT BEACH & COMPANY COVID-19 RESPONSE & ACTION PLAN

F I S CA L Y E A RS 20 2 3 & 20 24 D EST I N AT I ON BUSI NES S PL AN

RENA RESILISSANCE. REINV IENCE. IGORA TE.

RENAISSAN

NEWP ORT BE ACH A ND CO.CO M

EXECUTIVE SUMMARY On the precipice of a new biennial business cycle, Newport Beach & Company reflects on the past cycle before entering the new two-year period. At this watershed point as we develop the new two-year Newport Beach & Company Destination Business Plan, there are three words when combined encapsulate our vision, mantra, spirit, and rallying cry for tackling the challenges and opportunities ahead over the next two fiscal years across six business units: RENAISSANCE. RESILIENCE. REINVIGORATE. At this pivotal moment, we look back at the past two years before we look ahead. COVID-19 reshaped the global economic landscape with the tourism-and-hospitality industry experiencing some of the greatest disruptions among impacted industries, worldwide including here in Newport Beach. Hotel Occupancy Rates were 15 percent of 2019 levels, while spending levels within Newport Beach dropped to 39 percent of 2019. Recognizing COVID-19’s prolonged economic impact on the city and local businesses, Newport Beach & Company pivoted quickly and effectively to offset pandemic repercussions by implementing nearly 20 brand new programs, campaigns, tactics, and initiatives in real time. And at this moment, Newport Beach has withstood the storm as hotel-occupancy levels are at 82.8 percent of 2019 levels and continue to trend in a positive direction while spending levels for year-to-date 2022 have surpassed 2019 at 162 percent. Average daily rate (ADR) is out-pacing nearly our entire competitive set, and we expect to fully recover by the end of this year and reach record-breaking heights in hotel occupancy. With the horizon shining brightly, Newport Beach is also proud to enter a new era of reimagined, coastal luxury. Undeterred by challenges, local investors and visionaries are reimagining luxury hospitality starting with the exciting opening of the new VEA Newport Beach, A Marriott Resort & Spa. In summer 2023 Montage International will open Pendry Newport Beach, which will bring even greater casual glamour and sophistication to the destination. And in 2024, the new 80,000-square-foot, four-story RH Newport Beach, The Gallery at Fashion Island, will open with a stunning rooftop, ocean-view restaurant. Additional exciting developments are in the pipeline for opening in 2024 as well. It is the start of a dynamic new chapter for our destination, all fueled by local investor confidence in Newport Beach, resilient leisure traveler spending and a destination brand that commands excellence and higher rates. With the freedom to create and innovate, our hospitality partners are setting a new bar for California coastal luxury in Newport Beach. Newport Beach & Company is also reimagining how we do business in this new COVID-19 era. We are just days away from breaking ground on an office renovation built to represent the Newport Beach brand that will catapult our company into a new era. Newport Beach & Company looks forward to marketing and promoting our unprecedented luxury renaissance powered by resilient staff, partners and community that will reinvigorate our mojo, spirit, and destination brand to new heights in fiscal-years 2023 and 2024.

WE’VE ARRIVED,

Gary C. Sherwin, APR, CDME President & CEO Newport Beach & Company

F I S CA L Y E A RS 20 2 3 & 20 24 D EST I N AT I ON BUSI NES S PL AN

FY2023 & FY2024 MANTRA & THEME RENAISSANCE: Celebrate our luxury renaissance and tell the story of our exciting new-and-reimagined luxury destination product that will first launch with resort and retail grand openings starting in 2022, 2023 and 2024. Continue to position destination as a luxury product, weaving in all partners throughout Newport Beach. Key words: Inspire, Celebrate, Educate RESILIENCE: Continue to navigate COVID-19 economicrecovery challenges including staff and deployment shortages, shipping cost overruns, supply chain delays and ever-rising inflation. Ever persistent COVID-19 variants also pose renewed set-backs with mask and stay-at-home mandates. Newport Beach & Company will elevate, educate, and engage our stakeholders and partners to assure we are resilient and always rise to the challenge with smart programming in the face of the uncertainty. Key words: Support, Encourage, Problem-Solve REINVIGORATE: Newport Beach & Company will take the lead in driving and developing new strategies for partners to re-engage key sectors including the group business sector and international leisure markets in the post-COVID-19 world. The team will also continue successful efforts of generating results from targeted campaigns in key domestic local, fly and feeder markets. Key words: Leadership, Innovation, Collaboration

RENAI RESILSSANCE. REINV IENCE. IGORA TE.

Debbie Snavely Chairperson Newport Beach & Company

AUDIENCE OVERVIEW Newport Beach & Company flips its strategic-planning process on its head and no longer creates future plans by functional departments or areas. Instead, the entire company looks at planning from its customers’ points of view vs. internally looking out. For Newport Beach & Company, the organization interacts with four major customer/audience groups: Leisure Travelers, Meeting Planners, Local Community Partners and Corporate. Everyone from the receptionist all the way up to the President & CEO is placed onto four audience-based strategic-planning teams, which meet over the course of several months to re-imagine and re-invest in developing new objectives, strategies and tactics designed to generate incremental travel, meetings, partnerships or engagement with the organization and to Newport Beach, California. LEISURE TRAVELER

MEETING PLANNER

CORPORATE

LOCAL COMMUNITY

Leisure travelers are visitors who stay in Newport Beach that enhance the local economy through direct visitors spending at businesses and through transient-occupancy tax (TOT) accommodations.

Meeting Planners manage the planning and operations for conferences, meetings, events in Newport Beach’s tourism business improvement district (TBID) hotels and hospitality industry businesses.

Newport Beach & Company and Visit Newport Beach staff, executive team, executive committee and board of directors comprised of the destination’s hospitality leadership.

Members and leaders of the Newport Beach community from a network of organizations including City of Newport Beach; hospitality and tourism businesses including hotel, retail, restaurant, attractions and recreation; business improvement districts (BIDs), merchant associations; event organizers; destination marketing organizations; relevant associations; local residents and government officials.

NEWPORT BEACH & COMPANY

FINANCIAL/ ADMINISTRATIVE TEAM

BOARD OF DIRECTORS 501(c)(6)

NEWPORT BEACH FOUNDATION 501(c)(3)

PRESIDENT/CEO

COMMUNITY LEADERSHIP DEVELOPMENT

BRAND MARKETING TEAM

VISIT NEWPORT BEACH,INC.

GROUP SALES

DINE NEWPORT BEACH

LEISURE MARKETING

CELEBRATE NEWPORT BEACH

VIDEO NEWPORT BEACH

NEWPORT BEACH TV

ENTERPRISE NEWPORT BEACH

LIFESTYLE VIDEO PRODUCTION

NEWP ORT BE ACH A ND CO.CO M

NEWPORT BEACH & COMPANY THREE-YEAR STRATEGIC PLAN 2023-2025 CORPORATE MISSION

CORPORATE BRAND PROMISE

CORPORATE VISION

IGNITE GLOBAL PASSION FOR NEWPORT BEACH

INNOVATIVE, ENTREPRENEURIAL STEWARDS OF THE NEWPORT BEACH BRAND Newport Beach & Company is a progressive, dynamic and innovative marketing organization that brings a results-oriented mindset and forward-looking attitude to the community it serves. Embracing a learning-centered environment, where ideas can develop and be best used for the benefit of its partners, Newport Beach & Company’s team is a passionate steward for the brand. It is resourceful in creating meaningful marketing programs and services, setting the standard for outstanding destination leadership.

BE BOLD. BE SMART. GO BEYOND. Newport Beach & Company aspires

Newport Beach & Company is a creative and focused community marketing agency singularly committed to telling the city’s integrated brand story. It strengthens all its partners, drives new revenue and enhances Newport Beach’s overall vibrancy through powerful storytelling that unites neighborhoods, businesses and individual voices to bring the destination to life.

THREE KEY AREAS OF NEW STRATEGIC PLAN

1 2 3

DESTINATION BRAND LEADERSHIP & ASSISTANCE TO KEY STAKEHOLDERS IN CREATING INDIVIDUALLY BRANDED PRODUCTS AND EXPERIENCES. EXPAND DESTINATION PRODUCT MARKETING TO MORE LUXURY AUDIENCES AND ASSIST NON-LUXURY PRODUCTS ON HOW TO CAPITALIZE ON THESE OPPORTUNITIES. CONTINUE TO PROVIDE INNOVATIVE LEISURE AND GROUP MARKETING PROGRAMMING FOR PANDEMIC RECOVERY BY ASSISTING HOSPITALITY BUSINESSES NOT YET RECOVERED IN BOTH BUSINESS AND STAFFING.

integrated community marketing and brand leadership. As an entrepreneurial leadership organization, it is creative, innovative and professional in building destination awareness both locally and nationally. It strives to do for its partners and stakeholders what they cannot do individually, driving business and economic growth to benefit the entire community it serves.

OUR FORMULA FOR SUCCESSS WE WANT TO BE ESSENTIAL TO THE NEWPORT BEACH BUSINESS COMMUNITY. WE DON’T WANT TO BE NICE TO HAVE, BUT ESSENTIAL TO THE SUCCESSFUL OPERATION OF THEIR BUSINESSES. WE STRIVE TO DO FOR OUR STAKEHOLDERS WHAT THEY CANNOT DO FOR THEMSELVES. WE WANT TO PUNCH ABOVE OUR WEIGHT (THINK BIG!) AS A SMALLER DESTINATION COMPETING AGAINST MUCH BIGGER DESTINATIONS ENTREPRENEURIAL MINDSET/BUSINESS BRAND CENTERED

ESSENTIALISM

CULTURE/VALUES Respect • Wellness • Integrity Employee Engagement • Learning Knowledge • Adaptability Innovation • Customer and Stakeholder-centric

to be the national model for outstanding

FORMULA

GOVERNANCE SYSTEM

F I S CA L Y E A RS 20 2 3 & 20 24 D EST I N AT I ON BUSI NES S PL AN

FUNDING

TRANSPARENCY

STRUCTURE

OUR CORE FOCUS • GENERATE DESTINATION DEMAND, OCCUPANCY AND ENHANCED INCREMENTAL SPEND TO POSITIVELY IMPACT THE COMMUNITY • PROMOTE DESTINATION LUXURY RENAISSANCE • CORPORATE COMMUNITY CONSULTANTS

OUR PRIORITY INITIATIVES • WE WILL BE THE CITY’S BRAND “CONSULTANT” • DEVELOP MORE CUSTOMIZED AND UNIQUELY NEWPORT BEACH PRODUCT OFFERINGS • ENCOURAGE MORE INDIVIDUAL PROPERTY-BRANDED EXPERIENCES • BEGIN TO REACTIVATE INTERNATIONAL MARKETS, ESPECIALLY LUXURY CENTERED • EXPLORE MORE LARGE-SCALE NEWPORT BEACH BRANDED EVENTS (I.E. NEWPORT BEACH FILM FESTIVAL, NEWPORT BEACH CHRISTMAS BOAT PARADE, ETC.) • EXPLORE EVEN MORE WAYS TO ASSIST HOTEL SALES STAFFS WITH KEY INITIATIVES AND PROGRAMMING THAT THEY LOST DURING COVID-19 • REACTIVATE MORE REGIONAL MARKETING OR OPERATIONAL MARKETING

OUR STRATEGIC INITIATIVES - PROMOTE NEW LUXURY RENAISSANCE & GROW CONSULTING SERVICES PROMOTE DESTINATION’S NEW LUXURY RENAISSANCE • MARKET, PROMOTE AND SELL NEW AND RE-IMAGINED LUXURY HOTELS, RESORTS AND RETAIL BUSINESSES. • PULL THE NEW BRAND POSITIONING AND IDENTITY THROUGHOUT THE DESTINATION AND ENTIRE COMMUNITY. • ENHANCE SPECIAL-EVENT MARKETING. GROW CORPORATE CONSULTING SERVICES • BRAND POSITIONING & IDENTITY CONSULTING SERVICES CUSTOMIZED, UNIQUELY NEWPORT BEACH BRANDED EXPERIENCES (PRODUCT OFFERINGS) • CURATE NEW PROPERTY-SPECIFIC EXPERIENCES • PRODUCT DEVELOPMENT WITH HOTEL PARTNERS • MARKETING SUPPORT & STRATEGY • ONGOING ORIENTATION WITH PARTNERS FEATURING PRACTICAL EDUCATIONAL OPPORTUNITIES. • ENSURE OUR PARTNERS AND COMPANY GET THE OPERATIONAL FUNDAMENTALS RIGHT. • REDEFINE AND ENHANCE NEWPORT BEACH & COMPANY’S COMMUNITY MARKETING MODEL AND GOVERNANCE

FY2023 & FY2024 MANTRA & THEME RENAISSANCE: Celebrate our luxury renaissance and tell the story of our exciting new-and-reimagined luxury destination product that will first launch with resort and retail grand openings starting in 2022, 2023 and 2024. Continue to position destination as a luxury product, weaving in all partners throughout Newport Beach. Key words: Inspire, Celebrate, Educate RESILIENCE: Continue to navigate COVID-19 economic-recovery challenges including staff and deployment shortages, shipping cost overruns, supply chain delays and ever-rising inflation. Ever persistent COVID-19 variants also pose renewed set-backs with mask and stay-at-home mandates. Newport Beach & Company will elevate, educate, and engage our stakeholders and partners to assure we are resilient and always rise to the challenge with smart programming in the face of the uncertainty. Key words: Support, Encourage, Problem-Solve REINVIGORATE: Newport Beach & Company will take the lead in driving and developing new strategies for partners to re-engage key sectors including the group business sector and international leisure markets in the post-COVID-19 world. The team will also continue successful efforts of generating results from targeted campaigns in key domestic local, fly and feeder markets. Key words: Leadership, Innovation, Collaboration

HOW WILL WE DO THIS? • ENTREPRENEURIAL/BUSINESS MINDSET • BRAND CENTERED • NEWPORT BEACH & COMPANY BUSINESS-UNIT STRUCTURE • TRANSPARENCY WITH STAKEHOLDERS

• STABLE, RELIABLE FUNDING • STRONG GOVERNANCE SYSTEM • ESSENTIALISM

RENAI RESILSSANCE. REINV IENCE. IGORA TE. NEWP ORT BE ACH A ND CO.CO M

F I S CA L Y E A RS 20 2 3 & 20 24 D EST I N AT I ON BUSI NES S PL AN

N E W P O R T B E A C H & C O M PA N Y

COVID-19 PANDEMIC RESPONSE & ACTION PLAN A CASE STUDY ON DESTINATION MARKETING DURING A PANDEMIC M A R C H 2 0 2 0 – M AY 2 0 2 2

From the onset of the pandemic in 2020 to May 2022, Newport Beach & Company and Visit Newport Beach acted swiftly with a two-pronged approach: offset protracted negative economic impact on Newport Beach hotels, restaurants and tourism-related businesses to re-think how to best position Newport Beach as an aspirational lifestyle destination. As the onset of COVID-19 pandemic re-shaped the global economic landscape, the tourism, hospitality, and service industries experienced the greatest disruptions and impact among all industries. This global health and economic crisis thrust Newport Beach and the entire travel industry into unforeseen territory: hotel occupancy rates in the low teens to below 10 percent, the closure of Disneyland® Resorts, convention centers turned into shelters, and triage centers. The meetings, events, and conferences side of the hospitality industry experienced the first and most drastic cuts. Large conventions, events, and conferences were immediately halted or outright cancelled, leaving hotels and meeting planners struggling to understand their contractual “out clauses” for those meetings.

NEWP ORT BE ACH A ND CO.CO M

NEWPORT BEACH & COMPANY COVID-19 PANDEMIC RESPONSE & ACTION PLAN YEAR 1 COVID-19 QUARANTINE BEGINS (CA)

2020

BLACK LIVES MATTER MOVEMENT

CA SCHOOLS CLOSE

JAN FEB MARCH

APRIL

MAY

UNTIL WE MEET AGAIN EMAIL CAMPAIGN:

FASHION ISLAND VISITOR CENTER CLOSED

GROUP SALES BRINGS THE DESTINATION TO THEIR PLANNERS WITH SUPPORTIVE MESSAGING, VIDEO CONTENT, DOWNLOADS AND MORE!

3 CONCIERGE EMPLOYEES LAID OFF 1 TOT EMPLOYEE LEFT TO TAKE ANOTHER JOB

2020-2021 DESTINATION BUSINESS PLAN AND FY2021 BUDGET

COMPLETELY REWRITTEN, PRODUCED, PRESENTED AND BOARD-APPROVED IN ONLY ONE MONTH AFTER PANDEMIC BEGINS

5 TOT EMPLOYEE LAYOFFS 3 TBID EMPLOYEE LAYOFFS 3 TBID FURLOUGHED EMPLOYEES BROUGHT BACK APRIL 1, 2021 MAY 1, 2021 JUNE 1, 2021

SUGAR N SPICE PARTNER APPRECIATION INITIATIVE:

GROUP SALES SHOWED THEIR SUPPORT OF TBID HOTEL STAFF WITH AN ONSITE VISIT, DELIVERING FROZEN TREATS AND BOOSTING MORALE

VNB IS THE FIRST TO LAUNCH A ONE-STOP DINING HUB: TAKE OUT, CURBSIDE PICK-UP AND DELIVERY

#ANCHORDOWN WITH LOVE NB

VNB LAUNCHES PUBLIC SUPPORT CONTENT: #ANCHORDOWN, UP-TO-DATE COVID-19 INFORMATION LANDING PAGE, CUSTOM VIDEO AND NEW “WITH LOVE NB” BRAND IDENTITY

HOAG DONATION: NEWPORT BEACH MARRIOTT HOTEL & NB&CO TRANSFORMS SPA AND NB&CO THE DESTINATION PARTNERSHIP; TO DIGITAL DONATION OF 8,000

FEATURING SMALL BUSINESSES, LIVE CAMS OF THE BEACHES, LIVE CLASSES (ART DEMOS, COOKING CLASSES, EDUCATIONAL, WORKOUT CLASSES), PARTNER SOCIAL TAKEOVERS, ZOOM BACKGROUNDS, QUARANTUNES PLAYLIST AND MORE!

F I S CAL YE A RS 20 2 3 & 20 24 D EST I N AT I ON BUSI NES S PL AN

ROLLS OF TOILET PAPER TO 500 FRONTLINE HOAG WORKERS

VISIT SAFE LEISURE MARKETING CUSTOM VISIT SAFE PSA GRAPHICS AND CONTENT CREATED AND ROLLED OUT

NEWPORT BEACH & COMPANY KEY PANDEMIC METRICS COVID-19 EVENT

ADMINISTRATION

NEWPORT BEACH & COMPANY

LEISURE MARKETING

RESPONSE

MASK MANDATE BEGINS IN CA

2020 JUNE

SUMMER RECOVERY CAMPAIGN

FILMED A SUMMER COMMERCIAL AND EXECUTED MULTI-TOUCH AD CAMPAIGN

NEW CA STAY-AT-HOME ORDERS

INDOOR DINING AND BARS ORDERED TO CLOSE FOR SECOND TIME

JULY

ECONOMIC DASHBOARD LAUNCHED WEEKLY

ECONOMIC INSIGHTS NEWSLETTER WITH HOSPITALITY PERFORMANCE AND ECONOMIC FIGURES

CA HITS 1M COVID-19 CASES

AUG

SEPT

OCT NOV

MEET SAFELY VIDEO COLLECTION: GROUP SALES PRODUCES CUSTOM VIDEO AND SOCIAL CONTENT CREATED TO ENCOURAGE A SAFE RETURN TO MEETINGS

NEWPORT BEACH RESTAURANT MONTH

DEC

TO ENCOURAGE BUSINESSES TO CONTINUE SAFE PRACTICES THROUGH WINTER SEASON

VISIT NEWPORT BEACH

HOLIDAY PASS

HOLIDAY PASS LAUNCHED

TBID PROPERTY SOCIAL DISTANCE GRAPHICS:

GROUP SALES PRODUCED, DISTRIBUTED AND DONATED FLOOR DECALS, ELEVATOR SIGNS AND FITNESS EQUIPMENT STICKERS, ALONG WITH BRANDED “TO-GO” FOOD STICKERS FOR INTERNAL DINING OPTIONS

VACCINATIONS BEGIN

NB COMMUNITY LEADERS ROLL OUT SAFE HEALTH INITIATIVE PLEDGE

FIRST-EVER RESTAURANT MONTH DEBUTS, DROVE THOUSANDS OF DINERS THROUGH THE DOORS OF LOCAL RESTAURANTS. SAFE AND INNOVATIVE “DRIVE IN AND DINE” MEDIA EVENT HELD

NET INCOME OF $942,097 for TBID NET INCOME OF $698,319 for TOT

GROUP SALES

LAUNCHED A FALL EXPEDIA CAMPAIGN

FIRST-EVER HOLIDAY PASS WHERE VISITORS ACCESSED HOLIDAY PROMOTIONS FROM OVER 50 BUSINESSES

SPOTLIGHTS DESTINATION AND HOTEL PARTNERS MEDIA EVENT HELD

NEWP ORT BE ACH A ND CO.CO M

NEWPORT BEACH & COMPANY COVID-19 PANDEMIC RESPONSE & ACTION PLAN YEARS 2 & 3

VACCINE AVAILABLE TO 16+

2021 JAN

ANCHOR NB RESTAURANTS CAMPAIGN DINE LOCAL. SUPPORT LOCAL. CAMPAIGN CREATED WITH A CALL TO COMMUNITY TO SUPPORT LOCAL DINING INDUSTRY

FEB

MARCH

APRIL

EXPEDIA SPRING CAMPAIGN

LOCAL TASTEMAKERS CAMPAIGN

DIGITAL CONTENT CAMPAIGN CREATED TO SPOTLIGHT LOCAL RESTAURANTEURS

CA OPENS WITH NO CAPACITY/RESTRICTIONS GOVERNOR ANNOUNCED THE REOPENING OF CA TOURISM INDUSTRY AND LED WITH THE DREAM VACATIONS PACKAGES

LAUNCHED A SPRING EXPEDIA CAMPAIGN WHICH SPOTLIGHTS VISITATION FOR DESTINATION AND HOTEL PARTNERS

MAY JUNE

1,000 REASONS TO MEET IN NEWPORT BEACH PROMOTION

MID-WEEK SUMMER CAMPAIGN CUSTOM VIDEO, ADS AND CONTENT CREATED TO DRIVE MID-WEEK HOTEL OCCUPANCY

OFFERED A $1,000 AMEX GIFT CARD FOR PROGRAMS SOURCED BY 7/15/21 AND ACTUALIZED BY 12/31/21

MEETINGSNB.COM SITE LAUNCH

STAY + PLAY HOTEL SUPPORT CAMPAIGN DIGITAL CONTENT CAMPAIGN VIDEO PACKAGE CREATED FOR EACH NB HOTEL

LOVE MEETINGS CAMPAIGN GROUP SALES KEEPS MEETINGS SAFE BY SENDING GIFT PACKAGES TO LOCAL PLANNERS WITH BRANDED VNB MASKS AND PERSONALIZED OUTREACH MESSAGES

COMPLETELY REIMAGINED SITE. FEATURES INCLUDE PARTNER LISTINGS WITH FLOORPLANS AND CAP CHARTS APPROPRIATE FOR POST-PANDEMIC PLANNING, EXPANDED MEDIA LIBRARIES, VIDEO CONTENT AND MORE! ONE WEEK LEFT NEWPORT BEACH

NEWPORT BEACH RESTAURANT WEEK TWO-WEEK DINE LOCAL. SUPPORT LOCAL. NBRW PREMIERS WITH DIGITAL PASS FOR DINERS

F I S CA L Y E A RS 20 2 3 & 20 24 D EST I N AT I ON BUSI NES S PL AN

RESTAURANT WEEK

APRIL19-MAY 2,2021 DINE LO CAL . SUPP ORT LO CAL .

DINENB.COM

@DINENEWPORTBEACH

MIC DENVER FIRST TRADESHOW WITH BOOTH PRESENCE SINCE BEGINNING OF PANDEMIC. A TOTAL OF 6 SHOWS WERE ATTENDED BETWEEN 2020 AND 2021

1,591

NEWPORT BEACH & COMPANY KEY PANDEMIC METRICS

192

MEDIA PLACEMENTS

NEWSLETTERS

COVID-19

ADMINISTRATION

NEWPORT BEACH & COMPANY

238

OMNICRON VARIANT COVID-19 BOOSTER AVAILABLE

DELTA VARIANT

AUG SEPT OCT

NOV

DEC

BLOGS

LEISURE MARKETING

RESPONSE

JULY

GROUP SALES

WEEKLY INSIGHTS EMAILS

NEW CAMPAIGNS CREATED AND LAUNCHED

2022 JAN

MASK MANDATE ENDS IN CA

FEB

MARCH

E X C L U S I V E O F F E R F O R 3 R D PA R T I E S !

LEVEL UP W I T H R E W A R D S F O R Y O U.

LEVEL UP PROMOTION

OIL SPILL RECOVERY CAMPAIGN

FIRST-EVER THIRD-PARTY PROMOTION OFFERING ADDITIONAL REWARDS DIRECTLY TO THE PLANNER

ORANGE COUNTY COASTAL TOURISM ALLIANCE FORMED WITH OC DMOs; RESOURCE LANDING PAGE BUILT

NEW TRADESHOW BOOTH RETURN TO IMEX WITH REBRANDED TRADESHOW BOOTH LOOK-AND-FEEL AND FULLY-STAFFED TEAM

APRÈS SKI SEA WINTER CAMPAIGN ROBUST AD CAMPAIGN EXECUTED IN STRATEGIC DRIVE MARKETS

FLOAT WITH US SPRING CAMPAIGN MULTI-CHANNEL CAMPAIGN WITH BROADCAST OOH AND DISPLAY ADVERTISING

VNB CREATES FIRST-EVER JOB FAIR TO ASSIST WITH HOSPITALITY LABOR SHORTAGE

NEWPORT BEACH CHRISTMAS BOAT PARADE RETURNS WITH MEDIA EVENT AND FIRST-EVER HOLIDAY MARKET ON OPENING NIGHT

VNB IS IN THE SPOTLIGHT WITH CUSTOM CINEMATIC COMMERCIAL AIRED DURING OSCARS®

NEWP ORT BE ACH A ND CO.CO M

NEWPORT BEACH & COMPANY DEVELOPED THREE PHASES FOR COVID-19 IMPACT RECOVERY Newport Beach & Company, Visit Newport Beach, and its business-units sprang into action—protect our staff, inform visitors and meeting planners, preserve the budget, renegotiate contracts, execute contract “out clauses,” filter out false information and rumors, close international offices and Fashion Island Visitor Center, write a new COVID-19 Business Plan and sadly furlough or reduce staff, reduce salaries, cut bonuses and temporarily remove non-essential benefits. These swift actions led to a financially solvent organization that led its peers in average daily rate and, in many cases, occupancy rates during some of the most difficult circumstances. The unprecedented global pandemic brought ever-changing restrictions, closures, mask mandates, beach closures, capacity limits, quarantines, and travel bans. These orders and restrictions led to traveler confusion, cancellations and introduced many new visitor concerns. During that first summer of the pandemic, racial tensions escalated as the Black Lives Matter movement went global, including marches in Corona del Mar and Balboa Peninsula following the murder of George Floyd by Minneapolis police officers. Protests, combined with the politicization of masks, an incumbent president facing impeachment, and a chaotic election season, all combined for a very tricky and tenuous messaging tight rope for Newport Beach & Company. In early Spring 2021, widespread vaccine distribution enabled state and local municipalities to lift some travel restrictions, which raised hope of a new normal and released pent-up travel demand. Summer 2021 served to be a stronger-than-expected leisure travel season for Newport Beach. Carefully crafted messaging and promotional-driven marketing, 365-days-a-year ad campaigns, and safely attended tradeshows became the standard as Newport Beach & Company started its new fiscal year during the pandemic. However, variants like Delta and Omicron became more than speed bumps and nearly shut down many tourism and hospitality sectors in January 2022. As many Americans begin receiving their third vaccine booster shots, this new normal provides hope for the next few years. Still, glimmers of an economic slowdown begin to surface through slower home sales, rising inflation, and the constant threat of more lethal and communicable variants.

RESPOND

RECOVER

THRIVE

Manage revenue continuity with innovative marketing tactics that drive business to Newport Beach within the mandated Federal and State regulations.

Re-imagine marketing with search for new opportunities to build resilience to navigate future shocks while becoming stronger.

Plan and execute imaginative marketing to expand and amplify success in the ”new normal”

F I S CA L Y E A RS 20 2 3 & 20 24 D EST I N AT I ON BUSI NES S PL AN

2020 RESPONSE TO COVID-19 IMPACT IN NEWPORT BEACH WAS IMMEDIATE

• MASK MANDATE BEGINS • SUMMER CAMPAIGN BEGINS • DRIVE & DINE • EXPEDIA CAMPAIGN

140,000

• LIVE CAMS • VIRTUAL CLASSES

100,000

SPEND

2020

80.0% 70.0% 60.0%

80,000

50.0% QUARANTINE

60,000

40.0% 30.0%

40,000

OCCUPANCY RATE (%)

120,000

90.0%

20.0% 20,000

10.0%

0.0% JAN

FEB

MAR

APR

MAY

JUN

ACCOMODATIONS

OCCUPANCY

JUL

AUG

RETAIL

SEP

OCT

NOV

DEC

SPECIALTY RETAIL

DINING SOURCES: STR, ZARTICO

RECOVERY IN 2021 WAS ACHIEVED THROUGH STRATEGIC RESILIENCE USING AGILE AND DECISIVE SALES AND MARKETING SUMMER CAMPAIGN BEGINS

300,000

CHRISTMAS 80.0% BOAT PARADE

RESTAURANT WEEK BEGINS

70.0%

EXPEDIA SPRING CAMPAIGN BEGINS

200,000

60.0%

50.0%

40.0%

150,000

SPEND

2021

STAY & PLAY BEGINS

OCCUPANCY RATE (%)

250,000

2020 PEAK SPEND

30.0% 100,000

20.0% 50,000

10.0%

0.0% JAN

FEB

OCCUPANCY

MAR

APR

MAY

JUN

ACCOMODATIONS

JUL

AUG

RETAIL

SEP

OCT

NOV

SPECIALTY RETAIL

DEC

DINING SOURCES: STR, ZARTICO

NEWP ORT BE ACH A ND CO.CO M

NEWPORT BEACH THRIVED THROUGH AN UNDERSTANDING AND ANSWERING OF DEMAND SIGNALS

300000

80.0% 70.0%

250000

60.0% 200000

50.0%

150000

40.0% 30.0%

100000

20.0% 50000

10.0%

0.0%

2019

2020

2021

2022

AVG: JAN-DEC

AVG: JAN-MAR

OCCUPANCY

ACCOMODATIONS

RETAIL

SPECIALTY RETAIL

DINING SOURCES: STR, ZARTICO

Category spend is outpacing 2019 levels

Occupancy rates are trending in a positive direction with strong run rates based on 4Q2022

2022 run rates reflect continued pace of increased spend and Occupancy Rates (%)

F I S CA L Y E A RS 20 2 3 & 20 24 D EST I N AT I ON BUSI NES S PL AN

SUCCESS DURING RESPONSE AND RECOVERY CAN ALSO BE FOUND IN HOTELS

300

90.0% 80.0%

250 70.0% 200

60.0% 50.0%

150 40.0% 100

30.0% 20.0%

50 10.0% 0.0%

JA N 20 M 19 A R 20 M 19 A Y 20 1 JU 9 L 2 SE 019 P 20 19 N O V 20 JA 19 N 20 M 20 A R 20 M 20 A Y 20 2 JU 0 L 2 SE 020 P 20 20 N O V 20 JA 20 N 20 M 21 A R 20 M 21 A Y 20 2 JU 1 L 2 SE 021 P 20 21 N O V 20 JA 21 N 20 22

OCCUPANCY RATE (%)

REVPAR

The transition of COVID-19 from pandemic to endemic has created a new normal for Occupancy, ADR and RevPAR: • Lower Occupancy Rates (%) in January may be attributed to new COVID-19 variants for 2 years running. • Although the latter half of 2020 reflected a muted recovery, 2021 established an increased trend of higher than 2019 ADR. • RevPAR is moving at a slower pace than ADR, but the progress continues to move in a positive direction

SOURCES: STR, ZARTICO

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AUDIENCE-BASED BUSINESS PLANS 22 LEISURE TRAVELER AUDIENCE BUSINESS PLAN 36 MEETING PLANNER AUDIENCE BUSINESS PLAN 48 LOCAL COMMUNITY AUDIENCE BUSINESS PLAN 48 CORPORATE AUDIENCE BUSINESS PLAN 67 DESTINATION RESEARCH, FORECASTS & BUSINESS INTELLIGENCE - LEISURE & MEETINGS

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RENA RESILISSANCE. REINV IENCE. IGORA TE.

RENAISSAN

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L E I S U R E T R AV E L E R Leisure travelers are visitors who stay in Newport Beach that enhance the local economy through direct visitors spending at businesses and through transient-occupancy tax (TOT) accommodations.

MEETING PLANNER Meeting Planners manage the planning and operations for conferences, meetings, events in Newport Beach’s tourism business improvement district (TBID) hotels and hospitality industry businesses.

AUDIENCES OVERVIEW

LO CA L COM M UNIT Y Members and leaders of the Newport Beach community from a network of organizations including City of Newport Beach; hospitality and tourism businesses including hotel, retail, restaurant, attractions and recreation; business improvement districts (BIDs), merchant associations; event organizers; destination marketing organizations; relevant associations; local residents and government officials.

C O R P O R AT E Newport Beach & Company and Visit Newport Beach staff, executive team, executive committee and board of directors comprised of the destination’s hospitality leadership.

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S.W.O.T ANALYSIS

STRENGTHS

WEAKNESSES .................................................................. ............................................................

LEISURE TRAVELER AUDIENCE FUTURE MAP

TRAVELER PATTERNS • Short length of stay • High rate of day-trip versus overnight • Low winter occupancy LIMITED BEACHFRONT HOTELS PARKING AND PUBLIC TRANSPORTATION OPTIONS LIMITED IN-CITY ATTRACTIONS LIMITED NATIONAL/INTERNATIONAL AWARENESS

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NATURAL RESOURCES • Newport Harbor/Beaches • Crystal Cove State Marine Conservation Area • Back Bay – local estuary YEAR-ROUND OUTDOOR WEATHER • Biking/Hiking • Boating/Kayaking • Parasailing/Surfing NEW AND REVITALIZED PROPERTIES • VEA Newport Beach, A Marriott Resort & Spa • Pendry Newport Beach • Ritz-Carlton Residences • Restoration Hardware

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VISITOR OFFERINGS • Award-winning hotels and resorts • 450 Restaurants, Celebrity chefs • High-end, unique retail and boutiques, including Fashion Island and Lido Marina Village • World-renowned events • Engaging activities for all ages • Near world-class attractions GOVERNMENT & COMMUNITY DEVELOPMENT • Safe community • Well-maintained infrastructure • Diverse neighborhoods • Clean, efficient airport (SNA) • Moderate distance from LAX, LGB and ONT

THREATS ............ ...........................

OPPORTUNITIES

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EXPANDED VISITOR MARKETS • Second-and Third-tier domestic markets • International efforts • Niche audiences • Business/Frequent Individual Traveler (FIT) LEISURE / SALES PARTNERSHIPS STATE AND NATIONAL TOURISM MARKETING EFFORTS ACCLAIMED EVENTS VISITING FRIENDS AND RELATIVES (VFR) TRAVEL CONSUMER/TRAVEL SENTIMENT TOWARD TRAVEL NEW TRAVEL TRENDS SHARING ECONOMY TEMPERATE COVID-19 RESTRICTIONS VERSUS LOS ANGELES VISITOR-TRANSPORTATION OPPORTUNITIES (TROLLEY)

WEATHER AND ENVIRONMENTAL HAZARDS COASTAL COMPETITION/NATIONAL COMPETITION ECONOMIC UNCERTAINTY TRAVEL BANS, LAPTOP BANS, VISA APPROVALS, IMMIGRATION ISSUES COVID-19 & FUTURE PANDEMICS • Future possible variants being vaccine resistant • Vaccine hesitancy in U.S. population • Vaccine availability and usage in top international in-bound markets • Requirements for “Vaccine Passports” from/to international markets • Requirements for “Vaccine Passports” to attend large-scale events/meetings • Pandemic - Induced Recession • Pandemic shutdowns/Quarantines • Travel Bans on international travel ECONOMIC INFLATION OR STAGNATION WORKFORCE: COMPETITIVE SALARIES AND LIMITED STAFF ORANGE COUNTY/HUNTINGTON BEACH PERCEPTIONS/ MISPERCEPTIONS INTERNATIONAL CURRENCY EXCHANGE RATE FLUCTUATIONS POLITICAL UNCERTAINTY/INSTABILITY

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LEISURE TRAVELER AUDIENCE BUSINESS OBJECTIVES Tourism plays a vital role in the Newport Beach economy via its positive impact on employment opportunities, income generation, infrastructure development and improvement in social services such as telecommunications and banking services. Visitors to Newport Beach spend significant dollars at hotels, restaurants, attractions, retail and local businesses making tourism one of the purest and most lucrative forms of economic development. As we pivot as an organization to new leisure marketing challenges and opportunities, Newport Beach & Company looks forward to generating incremental visitor spending by emphasizing the luxury renaissance in our hotel, resort, and retail product, while promoting and marketing our resilient partners, hotels, local investors and residents that will reinvigorate our mojo, spirit and results as destination marketers in fiscal years 2023 and 2024. Newport Beach & Company will fully utilize its cross-functional leisure traveler marketing to accomplish the objectives set forth in this plan. Marketing, communications, advertising, digital, media relations and meetings services will leverage their relationships to work together to keep Newport Beach at the forefront of travel trends and drive incremental visitation and spend to Newport Beach. By leveraging all of the marketing team’s resources, the cross-departmental team developed this integrated business plan for the leisure traveler customer segment where objectives are quantifiable goals, strategies are executed to objectives through imaginative marketing, and tactics are projects that support overarching strategies.

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OBJECTIVE 1 GENERATE INCREASED LEISURE TRAVEL SPEND

OBJECTIVE 2 SPARK A PASSION FOR NEWPORT BEACH

OBJECTIVE 3 GO GLOBAL

OBJECTIVE 4 GO DIGITAL

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OBJECTIVE 1 - LEISURE TRAVELER GENERATE INCREASED LEISURE TRAVEL SPEND IMPLEMENT MULTI-CHANNEL MARKETING EXECUTIONS TARGETING LEISURE TRAVELERS TO GENERATE AT LEAST $40M IN ECONOMIC IMPACT TO NEWPORT BEACH VIA HOTEL, SHORT-TERM RENTALS, RETAIL, RESTAURANTS AND OTHER VISITOR-SUPPORTED BUSINESSES.

STRATEGY 1: Re-imagine marketing to develop integrated multi-media campaigns that highlight Newport Beach as a desired destination. Utilize quantitative and qualitative data to develop highly targeted and cohesive marketing campaigns to convert consumers to Newport Beach overnight visitors. TACTICS:

• Plan and execute imaginative marketing executions that will increase reach and frequency of Newport Beach brand as a desired destination. • Optimize media placement using industry resources for strategic placement of messaging to new and existing Newport Beach leisure targets. • Ensure all marketing creative encourages visitors to travel mid-week, specific holiday and slower periods when Newport Beach hotels and resorts need business the most. • Leverage media relationships to spread message through media sources while promoting participating partners. • Elevate marketing execution with test marketing and by prioritizing and tiering feeder markets. • Plan quarterly marketing calendar to guide strategy, messaging and timing of all tactics.

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STRATEGY 2: Leverage organic social media to increase reach to target audience TACTICS:

• Plan and execute highly targeted influencer marketing to coincide with paid media campaigns to generate increased earned media exposure and boost brand awareness. • Leverage Newport Beach & Company owned digital assets to extend customer engagement. • Deploy stimulating and compelling content to advance search engine optimization (SEO) for higher results ranking. • Strengthen customer engagement with useful and stimulating content.

STRATEGY 3: Convert day-trippers to overnight guests TACTICS:

• Expand marketing to feeder markets leveraging proximity to John Wayne Airport to convert awareness to overnight visitation • Develop packages with hotel, retail, and dining partners to offer vacation packages during need periods. • Include new destination features in media messaging to create emotive desire to stay.

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OBJECTIVE 2 - LEISURE TRAVELER SPARK PASSION FOR NEWPORT BEACH INCREASE BRAND AWARENESS FOR NEWPORT BEACH AND ITS LUXURY RENAISSANCE THROUGH EMOTIVE AND ACTION-DRIVEN

STRATEGY 1:

INITIATIVES THAT INCREASE BRAND AWARENESS AND VISITATION

Promote Newport Beach’s Luxury Renaissance through Targeted Marketing, Content, Advertising and all Communications TACTICS:

• Leverage emotive and visual creative within appropriate media channels that will best showcase Newport Beach and its new luxury hotel, resort and retail partners. • Utilize revised demographic profile and elevated personas in all advertising plans to reach ultra-high net worth travelers. • Understand awareness pain points and address within creative with visuals and language. • Develop smaller marketing plan targeting the luxury traveler and luxury travel agent partner who best matches our new luxury product offering. • Host Visit California’s Luxury Forum in 2024. • Create clear differentiation from competing destinations to generate interest that will motivate action. • Employ imaginative marketing tactics to increase reach and frequency of paid ads. • Position Newport Beach as a distinctive and unique destination to satiate post COVID-19 pent up desire to travel. • Integrate and leverage new luxury destination assets in communications and collateral.

STRATEGY 2: Expand avenues for engagement by leveraging organic social media to extend and heighten brand awareness TACTICS:

• Utilize each platform to deliver on its unique purpose and distinct demographics to strengthen customer engagement with Newport Beach. • Communicate brand values to create a personalized connection via regularly scheduled content and messaging. • Deliver brand validation as a desired destination through visual storytelling, updated posts and blogs. • Extend customer engagement and develop followers’ invested interaction in Newport Beach brand. • Advance SEO rankings with consistent and steady posts.

STRATEGY 3: Digital destination storytelling in paid, owned and earned media to increase brand awareness and destination knowledge TACTICS:

• Re-think, re-design and re-ignite VisitNewportBeach.com homepage with reimagined digital storytelling that will guide visitor from interest to action. • Create emotionally impactful content to fuel desire.

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OBJECTIVE 3 - LEISURE TRAVELER GO GLOBAL UNCAP NEWPORT BEACH’S GROWTH POTENTIAL WITH INTERNATIONAL MARKETING

STRATEGY 1: Prioritize, explore and activate re-entry into the top international feeder markets to Newport Beach to increase international visitation and visitor spending within destination TACTICS:

• Through big data, credit-card tracking reports, trends and visitor profiles, evaluate opportunities to executive imaginative marketing that will best showcase Newport Beach as destination. • Explore new public relations and travel-trade representation firms in those top chosen markets to find the best capable and more equipped agency to generate the most brand awareness and travel to Newport Beach in the post-Covid-19 world. • Explore expansion of marketing footprint reach in existing international markets (China, Middle East and United Kingdom). • Deploy consumer advertising campaigns and events prior to need periods to accommodate travel time. • Explore expansion of marketing into new global markets.

STRATEGY 2: Educate international travelers on newport beach and drive incremental visitation from each target international market TACTICS:

• Expand digital marketing to a global scale to create a greater impact through visual story-telling. • Develop and deploy in-language website landing page to increase awareness and trust. • Re-imagine and develop marketing opportunities London’s Newport Beach Film Festival U.K. Honours event leading up to the British Academy of Film & Television Arts (BAFTA) Awards.

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OBJECTIVE 4 - LEISURE TRAVELER GO DIGITAL LEVERAGE DIGITAL MARKETING TO REACH CUSTOMER THROUGH ENGAGEMENT TO INCREASE VISITATION TO NEWPORT BEACH BY PROVIDING PERSONALIZED INFORMATION FOR TARGETED CUSTOMERS BASED ON THEIR SPECIFIC ACTIVITIES AND SEARCHES.

STRATEGY 1: Utilize multiple digital marketing channels to maximize two-way communications and improve ROI for Newport Beach TACTICS:

• Adapt creative to different platforms to better tailor the advertising to different individual guests rather than a large coherent audience. • Set SMART (specific, measurable, actionable, relevant, and time-bound) objectives to define customer-centric value proposition (wellness, luxury, retail, outdoor sports, family, etc.). • Transition mass email to micro-targeted email marketing to provide a direct, but personalized communication to further increase loyalty and awareness. • Continue to enhance and expand all metrics and analytics to better understand the destination’s key customers and implement appropriate digital marketing strategies that address consumer searches.

STRATEGY 2: Use digital marketing to communicate a visually evocative reason to visit while building awareness TACTICS:

• Leverage programmatic, organic and social media to initiate an emotional connection and create an incentive for visitation. • Increase Video advertising for destination storytelling to stimulate the senses and create a sensory response that results in visit to Newport Beach. • Utilize multiple platforms to promote events, news and incentives. • Address increased device usage by using dynamic digital marketing to retain focus on the Visit Newport Beach narrative.

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STRATEGY 3: Establish a new personalized digital connection via new destination website and mobile-based platform TACTICS:

• Develop and launch a completely new destination website that is also dynamic for mobile devices to enhance and elevate the customer’s online experience within www.VisitNewportBeach.com • Develop content marketing including new luxury content, stories, videos and blogs to offer helpful information that will hold customer attention with goal of influencing visitation as well as create destination awareness. • Leverage Ask Marina within new website to create and cement an AI-based, personalized concierge service for discovery of Newport Beach.

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FY2023 & FY2024 LEISURE TRAVELER AUDIENCE INITIATIVE CALENDAR FY2023 JULY

AUGUST

SEPTEMBER

HOLIDAYS, NATIONAL, EVENTS, SEASONALITY & WEATHER

4TH OF JULY

OCTOBER

LABOR DAY

THANKSGIVING

DECEMBER

CHRISTMAS/HANUKK

2023 & 2024 POLITICAL WINDOW: GENERAL EMMY AWARDS SUMMER BREAK

FIRE SEASON

WINTER BREAK

HURRICANE SEASON & FIRE SEASON

SKI SEASON COVID-19 VARIANT SEASON

SUMMER PEAK SEASON (STRONG PERIOD)

FALL SHOULDER SEASON (SOFT PERIOD)

WINTER OFF SEASON (NEED PERIOD)

BRAND ADVERTISING CAMPAIGN

SUMMER LEISURE CAMPAIGN

FALL LEISURE CAMPAIGN

WINTER LEISURE CAMPAIGN

VISIT NEWPORT BEACH

NEWPORT BEACH FILM FESTIVAL

CORONA DEL MAR RESTAURANT WEEK

PENDRY NEWPORT BEACH HOTEL OPENING SUMMER 2023

CLASSIC

MARKETING CAMPAIGN

NOVEMBER

HOLIDAYS

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EVENTS

NEWPORT BEACH CHRISTMAS BOAT PARADE

KAH

FY2024 JANUARY

FEBRUARY

MARCH

APRIL

MAY

MLK DAY

PRESIDENT’S DAY

ST. PATRICK’S DAY

EASTER/PASSOVER

MEMORIAL DAY 2024 POLITICAL WINDOW: GENERAL

2024 POLITICAL CAMPAIGN WINDOW: PRIMARY BAFTA AWARDS

JUNE

ACADEMY AWARDS SPRING BREAK

WAVE & SKI SEASON BLIZZARD SEASON

FIRE SEASON

WINTER OFF SEASON (NEED PERIOD)

SPRING SHOULDER SEASON (SOFT PERIOD)

SUMMER PEAK SEASON (STRONG PERIOD)

BRAND ADVERTISING CAMPAIGN

WINTER LEISURE CAMPAIGN

SPRING LEISURE CAMPAIGN

SUMMER LEISURE CAMPAIGN

HOAG CLASSIC

NEWPORT BEACH JAZZ FESTIVAL

VEA NEWPORT BEACH OPENING JUNE 2022 RH GALLERY FASHION ISLAND OPENS SPRING 2024

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NEW LEISURE TRAVELER PERSONAS Newport Beach & Company partnered with Destination Analysts to conduct market research to identify and develop key audience personas. Once the preliminary information was collected from 14 feeder markets, insights were filtered against the GlobalWebIndex marketing research tool to gain additional insights for persona development. Seven high-value prospect groups emerged as the most likely to be attracted to Newport Beach destination vacation offerings.

BEACH GOERS/FAMILY Drawn to beach destinations and activities, these family travelers pursue vacations that align with their active outdoor lifestyle. While interested in the quintessential California beach experience, they also have a willingness to invest in Newport Beach’s premium experiences when it comes to dining out, cultural outings and more. Highly educated with postgraduate degrees, this group ranges between 45-54 and are married with 1-2 children.

BUZZ BOUND Characterized by their desire to seek out notable, exclusive destinations, this audience lives for on-trend experiences that can be showcased on their expertly curated social media feeds. They are exhilarated by spontaneous opportunities to try something new, from Instagram-worthy accommodations to culinary hot spots. Nightlife, exceptional restaurants and premium products in Newport Beach are of great interest for this group, which ranges from 25-54 but skews slightly younger.

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CULINARY CONNOISSEUR This persona finds joy in discovering regional and local cuisine, documenting each experience on social media to bring followers along on their culinary travels. Dining out is more than just an activity for this group; it is a journey that begins with significant research into restaurants with the most unique atmospheres and food not readily available in their area. Once committed to a destination, they are likely to become brand evangelists who return to explore the ever-evolving culinary landscape. Though demographics fall in the 35-54 range and a majority are married with children, all ages are represented in this audience segment.

THE LUXURY TRAVELER An accomplished, well-educated group with discerning taste, these travelers are drawn to the luxe amenities and bespoke offerings of Newport Beach’s five-star resorts. They are willing to invest in high-end experiences across all luxury categories, from exceptional cuisine to exclusive designer fashions to premium products that showcase the region’s unique culture and traditions. This affluent group, which skews toward the 35-54 age range, has an HHI upward of $200K.

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S.W.O.T ANALYSIS

STRENGTHS

WEAKNESSES

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MEETING PLANNER AUDIENCE FUTURE MAP

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STRONG HOTEL SUPPORT OF TBID AND VISIT NEWPORT BEACH SALES TEAM EXPERIENCED INTERNAL SALES STAFF PROVIDING CONTINUITY/ TENURE REVITALIZED HOTEL PRODUCT, INCLUDING NEW PREMIUM OFFERINGS STRONG, ROBUST THIRD-PARTY PARTNERSHIPS DESTINATION APPEAL • Outdoor experiences • Newport Harbor and beaches • Coastal chic properties • Luxury shopping

NO CENTRAL, WALKABLE NIGHTLIFE DIRECTLY ACCESSIBLE FROM MEETING SPACES LIMITED ORANGE COUNTY AIR ACCESS TO SOME MAJOR MARKETS LACK OF VARIETY OF HOTEL PROPERTIES • Only two TBID hotel brands in the destination (Marriott, Hyatt) • No TBID five-star resort properties or beachfront hotels LIMITED NUMBER OF UNIQUE, OFF-SITE VENUES FOR LARGE GROUP LACK OF “HIGH-TOUCH” EXPERIENCES COMMISSION STRUCTURE OF PORTFOLIO NO ONSITE GOLF AT TBID HOTELS AND RESORTS

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BOUTIQUE DESTINATION TREND, EVEN MORE SO POST-PANDEMIC ACCESSIBLE/AFFORDABLE LUXURY CELEBRITY APPEAL BRAND RECOGNITION FOR DISTINCT HIGH-END EXPERIENCES AND UNIQUE COASTAL APPEAL

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OPPORTUNITIES

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THREATS

EXPANSION OF CORPORATE END-USERS IN SOUTHERN CALIFORNIA REGION ONBOARDING AND CONTINUED ENGAGEMENT WITH NEW AND EXISTING TBID PARTNERS INCREASED CUSTOMER AWARENESS OF DESTINATION LOCATION FOR MEETINGS

UNCERTAINTY OF HOW PLANNERS AND ATTENDEES DETERMINE SAFETY OF TRAVEL AND MEETINGS COVID-19: IMPACT OF VARIANTS, VACCINES, STATE/FEDERAL MANDATES NEIGHBORING/LOCAL FIVE-STAR PROPERTIES COMPETITORS OFFERING ADDITIONAL FINANCIAL SUPPORT, LEVERAGING HIGH-PROFILE PARTNERSHIPS, ETC. LOCAL ASSETS LEVERAGED BY COMPETITORS LACK OF DIFFERENTIATION WITH LOS ANGELES COUNTY

EXPANDED AIRLIFT/DIRECT FLIGHTS (SNA, LGB) BROADENING EXPOSURE FOR OUR HIGH-END HOTELS, NOW INCLUDING VEA NEWPORT BEACH, A MARRIOTT RESORT & SPA AND PENDRY INTEGRATED MARKETING CAMPAIGN TARGETING LUXURY AUDIENCE LEVERAGING ALL INDUSTRY PARTNERSHIPS ENHANCED INCENTIVES FOR THIRD PARTIES

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MEETING PLANNER AUDIENCE BUSINESS OBJECTIVES Newport Beach & Company and Visit Newport Beach, Inc. jointly present this fully integrated group sales, meeting services, marketing, digital marketing, public relations and communications plan to attract meetings and conferences and subsequent economic impact to Newport Beach and its Tourism Business Improvement District (TBID) hotel partners for fiscal years 2023 and 2024. The challenges set by the lingering effects of the COVID-19 pandemic and its dramatic, negative impact on live, in-person meetings and conferences have completely changed the meetings, conferences, and convention landscape in our industry— perhaps for the long-term. The transition to hybrid meetings (both virtual and live, in-person meetings) may be here to stay. Videoconferencing and the new era of Zoom meetings—also may have permanently changed the way groups, companies and associations conduct future meetings or large gatherings of employees, attendees or stakeholders. The evergreen opportunities of the increasing role of intermediaries in the meeting-planning process, combined with the constant struggle to always establish the value of partnership with a DMO, continue to be a balancing act in third-party partnerships, marketing and messaging the value proposition of working with Visit Newport Beach, Inc. Group Sales Team. Given these headwinds, the future is bright for Newport Beach TBID hotels and resorts. The changing local hospitality landscape with TBID hotel closures and renovations has positioned our meetings product offering for a once-in-ageneration luxury renaissance. The reimagination of the new, stunning VEA Newport Beach Resort & Spa in 2022 combined with the dramatic repositioning of Fashion Island Hotel into Pendry Newport Beach in 2023 will elevate our hotel meetings product while simultaneously raising the group rate at these two TBID hotels. Compression from these two re-imagined Newport Center hotels will push group rates and occupancy higher throughout the TBID hotel inventory. As we pivot as sales and marketing organization to meet the new challenges or opportunities, Visit Newport Beach, Inc. Group Sales & Marketing looks forward to growing awareness of the benefits of working with our Group Sales team and showcasing our partner’s luxury meetings renaissance, which showcases the hard work of our resilient hotel partners, sales teams and more. All these new luxury meetings touchpoints and campaigns will reinvigorate our spirit and pride in our amazing meetings and conferences destination. Visit Newport Beach, Inc. (TBID) Group Sales & Marketing Team is uniquely positioned to capitalize on this meetings recovery, which is coming at the perfect time as the reimagination and elevated meetings product comes online in 2023 and 2024. The elevated rates at VEA Newport Beach Resort & Spa and Pendry Newport Beach will add to the strength and power of the TBID budget, its hotel partners, and the Visit Newport Beach Group Sales & Marketing Team. The cross-functional, sales and marketing teams developed this integrated business plan for the meeting-planner customer segment with a management-by-objectives approach where objectives are quantifiable goals, strategies form the strategic approaches to reaching the benchmark objectives, and tactics are projects that support overarching strategies.

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OBJECTIVE 1 GROW CONFIRMED LUXURY MEETING BOOKINGS

OBJECTIVE 2 ESTABLISH AND REINFORCE VISIT NEWPORT BEACH AS AN ESSENTIAL BUSINESS PARTNER

OBJECTIVE 3 UNDERSTAND AND ELEVATE PLANNERS THROUGH DATA INTELLIGENCE

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OBJECTIVE 1 - MEETING PLANNER GROW CONFIRMED LUXURY MEETING BOOKINGS SEAMLESS INTEGRATION OF BRANDING, MESSAGING, PLANNING SUPPORT, AND ONLINE AND OFFLINE TOUCHPOINTS AS LEADS MOVE DOWN THE SALES FUNNEL, ENABLING AN INSPIRED AND INFORMED PLANNER EXPERIENCE. EFFORTS WILL RESULT IN $24M+ REVENUE EARNED VIA BOOKED MEETINGS AND EVENTS, IMPACTING TBID HOTEL, RETAIL, RESTAURANT, AND GROUP EXPERIENCE DESTINATION PARTNERS.

STRATEGY 1: Generate content, sales support materials and targeted promotions TACTICS:

• Prioritize storytelling and destination positioning with unique itineraries (activities, dining, etc.) via website content, blogs and email communications • Create and promote third-party planner promotions, engendering loyalty and providing extended value to the planner • Active SEO strategies with informative, impactful content to meet planners at each stage of their planning journey and inspire conversion • Email communications to deliver curated content that aligns with tradeshow participation, seasonal offers and unique destination offerings

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STRATEGY 2: Reinforce and expand in-person and virtual tradeshow and industry partner engagement to expand awareness and build relationships. TACTICS:

• Return to signature targeted tradeshows and industry events while investing in new luxury-focused shows with refreshed booth presence and iSales app content • Invest in strategic event sponsorships and speaking opportunities to establish a strong continuity of industry support and expand brand presence • Maximize tradeshow advertising opportunities across multiple tactics to engage pre-event, onsite and post-event • Leverage paid and owned PR and media opportunities to deliver dynamic and timely destination and team developments to boost planner awareness • Engage planners with social posts featuring in-person show activities, event sponsorships and destination partner engagements

STRATEGY 3: Deliver highly desirable lead engagement and TBID partner support TACTICS:

• Execute elevated familiarization tours (FAMs) with curated, branded experiences and high-touch service from destination professionals and partners • Continue highly successful gift programs that delivers a high-impact brand presentation with personalized messaging to encourage site visits • Pursue viable leads via funnel outreach, incorporating tactics aimed to pull leads through the funnel • Create targeted email campaigns, templates and curated support materials for one-to-one lead communications • Support TBID partners via assets, collateral and sales efforts for continued collaboration

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OBJECTIVE 2 - MEETING PLANNER ESTABLISH AND REINFORCE VISIT NEWPORT BEACH AS AN ESSENTIAL BUSINESS PARTNER REINFORCE THE VALUE OF ENGAGING THE VISIT NEWPORT BEACH SALES TEAM THROUGH COMPELLING INITIATIVES THAT PROVIDE PROOF POINTS OF PARTNERSHIP.

STRATEGY 1: Position Visit Newport Beach as an invaluable resource throughout all stages of the planning journey TACTICS:

• Conduct ongoing exploration of post-pandemic planner and group needs and support • Promote differentiation with competing DMOs via accredited and experienced team members, elevated service, etc. • Create innovative solutions to address program pain points via destination partnerships and extended value propositions • Promote seasonal and signature offers across planner types and sponsorships that extend an event’s bottom line

STRATEGY 2: Expand awareness among destination partners and engaged leads TACTICS:

• Launch targeted email communications to key market segments that follow a lead’s unique planning journey • Translate destination and team values using visual storytelling, templated messaging and blog content • Demonstrate partnership case studies via social channels and email communications • Sustain ongoing engagement with destination partners with lead assists, FAMs, collateral and curated support • Continue ongoing communications with TBID partners regarding marketing, event and partnership opportunities

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OBJECTIVE 3 - MEETING PLANNER UNDERSTAND AND ELEVATE PLANNERS THROUGH DATA INTELLIGENCE LEVERAGE QUALITATIVE AND QUANTITATIVE DATA GAINED THROUGH DIGITAL ENGAGEMENT TO DELIVER EFFECTIVE MARKETING AND MEET PLANNERS WHERE THEY ARE IN BOTH LOCATION AND PLANNING JOURNEYS.

STRATEGY 1: Incorporate data from industry partnerships, studies and platforms to enhance sales strategies TACTICS:

• Obtain information on group meetings from the live database provided by membership software program Knowland (lead assessment)

- Apply filters for comp set hotels as determined in each search — meeting dates, size, location of accounts, vertical markets, etc. - Use software to identify the most relevant customers and make decisions on advertising, deployment, trade shows and events

• Use the Cvent dashboard (competitive analysis, market trends, team efficiencies) for data on RFP and ADR performance YOY, or as measured in our comp set. Maximize other software capabilities to break down geographic regions, market segments, meeting types, sizes and times of year to help analyze where efforts and resources should be directed. • Closely follow industry studies on trends and planner insights from sources like Northstar, PCMA, MPI and Destination Analysts, as well as others, to obtain the research needed on the macro scale to bump against destination- or regional-specific perspective

STRATEGY 2: Translate learnings from digital marketing platforms to deliver effective messaging and experiences TACTICS:

• Leverage Act-On email analytics for lead journey mapping, market segmentation, etc. • Optimize website via SEO and digital campaign tracking using strategic UTM tagging, etc. • Continue to enhance and expand all metrics and analytics to better understand the destination’s key customers and implement appropriate digital marketing strategies that address consumer searches.

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FY2023 MEETING PLANNER AUDIENCE INITIATIVE CALENDAR TRADESHOWS

JULY

AUGUST

CONFERENCE DIRECT ANNUAL PARTNER MEETING FINANCIAL & INSURANCE CONFERENCE PLANNERS

ANNUAL NEWSNET STRATEGIC PARTNER PROFILE

IMEX CBI PHARMA FORUM CALSAE SEASONAL SPECTACULAR FICP FALL SYMPOSIUM HPN ANNUAL PARTNER MEETING FICP 2022 ANNUAL CONFERENCE SITE SOCAL HOLIDAY EVENT CONFERENCEDIRECT FORUM PRESTIGE NATIONAL SALES MEETING DESTINATION SHOWCASE CalSAE ELEVATE MEETING INDUSTRY COUNCIL FICP EDUCATIONAL FORUM HELMSBRISCOE ANNUAL MEETING NORTHSTAR INCENTIVE LIVE DESTINATION CALIFORNIA DESTINATION WEST CONNECT MARKETPLACE

PROMOTIONS & INITIATIVES VNB GROUP NEWSLETTER

1,000 REASONS TO PARTNER WITH VNB (SPRING/SUMMER PLANNER PROMO) HOLIDAY CLIENT EVENT 3RD PARTY CLIENT FAM FALL/WINTER BOOKING PROMO INCENTIVE CLIENT FAM SPRING/SUMMER PLANNER PROMOTION

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SEPTEMBER

OCTOBER

NOVEMBER

ECEMBER

JANUARY

FEBRUARY

MARCH

APRIL

MAY

JUNE

NEWP ORT BE AC HAND CO.CO M

S.W.O.T ANALYSIS

STRENGTHS ..................................................................

EXPLOIT STRENGTHS STRONG, CREDIBLE CITY AND DMO REPUTATION • City staff, civic leaders, civic organization • Visit Newport Beach Inc., Newport Beach & Company POSITIVE FINANCIAL IMPACT THROUGH BRAND DEFINING EVENTS UNITED UNDER COHESIVE MARKETING, PR AND MEDIA BUYING FOR ALL BUSINESS UNITS DESTINATION APPEAL FOR STRONG RECOVERY: ABUNDANT NATURAL OUTDOOR SPACES AND OFFERINGS COMPELLING TOURISM PRODUCT: AIRPORTS, TRAIN, RESTAURANTS, RETAIL, HOTELS, HARBOR, BEACHES, WEATHER, NEAR ATTRACTIONS DIVERSE NEIGHBORHOODS TO APPEAL TO VARIOUS INTERESTS DIVERSE HOTEL/ACCOMMODATIONS: FIVE-STAR RESORT TO SMALL INNS & VACATION RENTALS HOSPITALITY-FORWARD FIRST RESPONDERS: POLICE, FIRE AND LIFEGUARD DEPARTMENTS

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LOCAL COMMUNITY WEAKNESSES AUDIENCE .............................................................. FUTURE MIXED SUPPORT FOR TOURISM MAP LIMITED CONVENTIONS, MEETINGS EXHIBIT AND EVENT FACILITIES/VENUES BENEFITS THE CITY LACK OF SPORTS AND RECREATION FACILITIES AIR ACCESS FROM SOME MAJOR MARKETS LIMITED MOBILITY AND ACCESS (LOCAL TRANSPORTATION WITHIN CITY) LIMITED CITYWIDE COMMUNICATIONS AND INTERNET INFRASTRUCTURE NO CENTRAL, WALKABLE NIGHTLIFE LIMITED OCEANFRONT/BEACHFRONT HOTELS PERCEPTION OF BEING TOO EXPENSIVE LACK OF NATIONAL/INTERNATIONAL AWARENESS WORKFORCE: COMPETITIVE SALARIES AND LIMITED STAFF

..............................................................

ENGAGED LOCAL MEDIA WITH STRENGTH TO REACH RESIDENTS VIA NEWPORT BEACH TV (GOVERNMENT-ACCESS TV CHANNEL) STRONG PARTNER COMMUNITY ACCESS TO VACCINES AND MEDICAL CARE ROBUST HOSPITALITY AND RESTAURANT COMMUNITY DYNAMIC ECONOMIC DEVELOPMENT BASE

F I S CA L Y E A RS 20 2 3 & 20 24 D EST I N AT I ON BUSI NES S PL AN

THREATS ............................................................

OPPORTUNITIES

...........................................................

EMERGING NEW TBID PARTNERS REVITALIZED HOTELS AND RESORTS GROWING PROMINENCE OF NEWPORT BEACH EVENTS: FILM FESTIVAL, HOAG CLASSIC EXPANDED AIRLIFT/JOHN WAYNE AIRPORT CAPACITY CAP INCREASE

....................................

............................................

............

SHARING ECONOMY ECONOMIC AND POLITICAL UNCERTAINTY/INSTABILITY COVID-19: VARIANTS, VACCINES, STATE/FEDERAL MANDATES HURDLES TO INTERNATIONAL ACCESS INTO THE UNITED STATES: LAPTOP/TRAVEL BANS, VISA ACCESS U.S. INTERNATIONAL PERCEPTION/ IMAGE ONLINE SOURCING PLATFORMS MAKE IT EASY TO CIRCUMVENT NEWPORT BEACH NATURAL WEATHER-RELATED DISASTERS CALIFORNIA “FIRE SEASON”

MOBILIZING STATE AND COUNTY TO SUPPORT LOCAL

THIRD-PARTY COMMISSION STRUCTURES

RESOURCE TO PARTNERS AND COMMUNITY FOR AD HOC CONSULTING

LIMITED CAPACITIES AT ATTRACTIONS AND TOURISM/HOSPITALITY BUSINESSES

NEW ECONOMIC TOOLS AND RESOURCES FOR PARTNERS INCREASED CORPORATE COMMUNICATIONS

INCIDENTS GOING VIRAL ON SOCIAL MEDIA CAUSING NEGATIVE SENTIMENT/”CANCEL CULTURE” TOWARD DESTINATION OR LOCAL BUSINESSES

NIMBLE AND INNOVATIVE INTERNAL TEAM

SUPPLY-CHAIN CRISIS IMPACTING TOURISM-RELATED RESOURCES

NEWP ORT BE ACH A ND CO.CO M

LOCAL COMMUNITY AUDIENCE BUSINESS OBJECTIVES Newport Beach & Company leads the charge for the entire hospitality and tourism industry in Newport Beach by providing value for businesses, acting as a HQ for information, creating resources, and amplifying the importance of the tourism, hospitality, and meetings industry on the world stage. Building off a turbulent two years, Newport Beach & Company will continue its important work on behalf of the community. The organization is partner-and-stakeholder driven by servicing small business to luxury resorts and all visitor-facing businesses in between. Through advocacy work, partner communications and corporate communications, Newport Beach & Company puts business first to demonstrate economic impact, jobs creation and the significance of the industry. As we pivot as an organization to new leisure marketing challenges and opportunities, Newport Beach & Company looks forward to generating incremental visitor spending by emphasizing the luxury renaissance in our hotel, resort, and retail product, while promoting and marketing our resilient partners, hotels, local investors and residents that will reinvigorate our mojo, spirit and results as destination marketers in fiscal years 2023 and 2024. Newport Beach & Company is the “glue” that unites the community from a marketing, economic and hospitality standpoint. The organization connects the dots and is a resource for a variety of key stakeholders: local residents, partners, City of Newport Beach, City Council, civic organizations, hotels, businesses, merchant associations, regional destination-marketing and other regional/local influential community organizations. Newport Beach & Company and its six unique, standalone business units are a community-marketing agency for the City of Newport Beach, California benefiting local residents, partners, City of Newport Beach, City Council, civic organizations, hotels, businesses, merchant’s associations, regional destination-marketing organization and other regional/local influential community stakeholders. Leveraging this model, Newport Beach & Company plans to engage the local community in new, innovative ways to promote the value of tourism, Newport Beach & Company, and the Newport Beach brand to even greater heights. Newport Beach & Company developed this integrated business plan for the local-community customer segment with a management-by-objectives approach where objectives are quantifiable goals, strategies form the strategic approaches to reaching the benchmark objectives, and tactics are projects that support overarching strategies. The following plan encompasses the following five initiatives to generate awareness and continue to provide value to the City of Newport Beach and key stakeholders.

F I S CA L Y E A RS 20 2 3 & 20 24 D EST I N AT I ON BUSI NES S PL AN

OBJECTIVE 1 DISTRIBUTE DATA-DRIVEN REPORTS

OBJECTIVE 2 COMMANDING CORPORATE COMMUNICATIONS

OBJECTIVE 3 CREATIVE COMMUNITY CONSULTANTS

OBJECTIVE 4 PARTNERSHIP EDUCATION & NETWORKING

OBJECTIVE 5 REIMAGINED BUSINESS UNITS

NEWP ORT BE ACH A ND CO.CO M

OBJECTIVE 1 - LOCAL COMMUNITY DISTRIBUTE DATA-DRIVEN REPORTS RESEARCH AND DATA ARE KEY TO BUSINESS SUCCESS. NEWPORT BEACH & COMPANY IS LEVERAGING ITS NEW BUSINESS INTELLIGENCE PLATFORM AND OTHER DATA REPORTS TO AGGREGATE COMPREHENSIVE WEEKLY DASHBOARD SHOWING THE ECONOMIC HEALTH OF NEWPORT BEACH—INCLUDING MEDIAN HOME PRICES, # DAYS TO SELL, UNEMPLOYMENT RATE, HOSPITALITY/TOURISM UNEMPLOYMENT DATA, PERCENT OF RESTAURANTS OPEN, # OF SEATED DINERS, HOTEL OCCUPANCY,

STRATEGY

ADR AND MORE BY DAY, MONTH AND WEEK.

Newport Beach & Company has amassed cutting-edge intelligence and data information pertinent to business and civic entities in the destination. Assemble vital information from economic health to visitor profiles and disseminate to partners on a weekly and ad hoc basis. The goal is be a resource for partners, taking the lead on business intelligence to assist local partners with important decisions and their own marketing plans. TACTICS:

• Deploy a robust weekly insights email brimming with economic information and data points to illustrate the economic health of the destination. • Through new Zartico software system, provide City Council and City of Newport Beach staff with data visualization on visitor flow, volume and other valuable insights. • Conduct Newport Beach Economic Impact Study & Visitor Profile to measure true visitor volume, economic impact, visitor spending and visitor demographic profile information to local civic leaders and partners. • Continue to be the lead resource for data and intelligence in the destination. • Create custom intelligence reports for partners on request. • Continue to define visitor profile and key audiences for local partners to roll-out within their marketing plans.

F I S CA L Y E A RS 20 2 3 & 20 24 D EST I N AT I ON BUSI NES S PL AN

OBJECTIVE 2 - LOCAL COMMUNITY COMMANDING CORPORATE COMMUNICATIONS THROUGH CORPORATE COMMUNICATIONS, NEWPORT BEACH & COMPANY WILL CONTINUE TO STRONGLY ADVOCATE FOR TOURISM, HOSPITALITY, MEETINGS AND DESTINATION MARKETING INTO THE NEXT TWO FISCAL YEARS AND BEYOND. THESE VITAL INDUSTRIES POSITIVELY IMPACT ALL CORNERS OF THE DESTINATION BY POURING MILLIONS OF DOLLARS INTO THE CITY OF NEWPORT BEACH’S GENERAL FUND, CREATE JOBS AND KEEP SMALL BUSINESSES OPEN.

STRATEGY Newport Beach & Company’s corporate communications strategy takes a three-prong approach, amplifying key information to three audiences: media, partners/community and internal staff. Corporate communications will take a more central role in the public relations department over the next fiscal years by implementing a robust communications strategy and schedule to disseminate information to targeted audiences in a timely manner. TACTICS:

• Refresh robust corporate communications plan to include business information sharing to media, partners/community and internal staff. • Showcase wins, the team will enhance partners communication to illustrate Newport Beach & Company’s creative and results-driven campaigns and programs with case studies and other forms of communication • Increase LinkedIn communications to key community well-informed of the work we do. • Deepen relationships with key business media reporters and editors. • Ideate and implement unique break-through ways to tell the Newport Beach & Company story and greater hospitality story to the world. • Continue weekly CEO Guest Column in StuNewsNewport. • Identify thought-leadership opportunities for case studies, blog posts and guest columns. • Apply for industry and association awards. • Continue to achieve industry accreditations and certifications, e.g. Destination Marketing Accreditation Program (DMAP), etc.

NEWP ORT BE ACH A ND CO.CO M

OBJECTIVE 3 - LOCAL COMMUNITY CREATIVE COMMUNITY CONSULTANTS CONTINUE NEW ROLE AS COMMUNITY CONSULTANTS FOR PARTNERS, HOTELS, RESTAURANTS AND LOCAL CIVIC ORGANIZATIONS TO ELEVATE THEIR BUSINESSES AND DRIVE ECONOMIC GROWTH.

STRATEGY Serve as marketing, branding and sales consultants to local businesses, hotels, restaurants and civic organizations to enhance results, produce and sales/marketing efforts. TACTICS:

• Build on Newport Beach & Company’s new role in 2020-2021 as community consultant for various ad hoc marketing and sales needs for local businesses, civic organizations, neighborhood associations, restaurant association, and City of Newport Beach.

• Position organization as the community “go-to” for various needs, e.g., marketing plans, communication strategy, branding, marketing, crisis communications, brainstorming, etc. • Maximize opportunities for partner win-wins for Newport Beach & Company and partners. • Create a more tailored and enhanced partnership model as needed. • Advise hotel sales and marketing leaders on property-specific sales and marketing plans. • Provide graphic design, art direction and video-production services to local businesses and partners. • Provide economic resources and marketing toolkits for partners and community.

OBJECTIVE 4 - LOCAL COMMUNITY PARTNERSHIP EDUCATION & NETWORKING CREATE AND HOST NEWPORT BEACH & COMPANY NETWORKING AND EDUCATIONAL EVENTS FOR ALL PARTNERS, BUSINESSES, CIVIC LEADERS AND CIVIC ORGANIZATIONS TO SHOWCASE THE HARD WORK AND RESULTS OF THE COMPANY AND TOURISM/HOSPITALITY INDUSTRY PARTNERS AS WELL AS PROVIDE EDUCATIONAL INSIGHTS TO THE LOCAL NEWPORT BEACH ECONOMY.

STRATEGY Create and host Newport Beach & Company networking and educational events for all partners, businesses, civic leaders and civic organizations to showcase the hard work and results of the company and tourism/hospitality industry partners as well as provide educational insights to the local Newport Beach economy.

F I S CA L Y E A RS 20 2 3 & 20 24 D EST I N AT I ON BUSI NES S PL AN

TACTICS:

• Hold Annual Marketing Outlook Breakfast, Annual Dinner & Tourism Awards and Annual Holiday Partner Event. • Create first-ever Visitor Choice Awards recognizing top partners and businesses at the newly reimagined annual dinner. • Continue Rosalind Williams Service Excellence Award and Dennis O’Neil Partner in Progress awards as well as Local Tourism Hero Award. • Develop, update and present semi-annual Hospitality Training Program seminars, classes and training videos to educate local partners, city staff, Newport Beach Police Department staff, and Newport Beach Fire & Lifeguards. • Update partners with new brand creative and other marketing tools.

OBJECTIVE 5 - LOCAL COMMUNITY REIMAGINED BUSINESS UNITS

IMPACTS FROM THE AND CIVIC DECISIONS HAVE GIVEN WAY TO NEW OPPORTUNITIES TO REIMAGINE NEWPORT BEACH & COMPANY AND ITS BUSINESS UNITS FOR THE FUTURE. EVOLVE AND EXPAND THE ENTREPRENEURIAL, COMMUNITY-MARKETING ORGANIZATION MODEL AT NEWPORT BEACH & COMPANY THROUGH ITS UNIQUE BUSINESS UNIT STRUCTURE ENCOMPASSING COMMUNITY-WIDE MARKETING, BRANDING, PUBLIC RELATIONS, DIGITAL MARKETING, SOCIAL MEDIA AND SPONSORSHIP ACQUISITION THROUGH ONE SINGLE, INNOVATIVE COMPANY WITH SIX DISTINCT BUSINESS UNITS.

STRATEGY Re-engage and revisit all Newport Beach & Company business units: Visit Newport Beach, Inc. TOT and TBID Business Units, Dine Newport Beach, Celebrate Newport Beach, Enterprise Newport Beach and Video Newport Beach. TACTICS:

• Evaluate and evolve Newport Beach & Company model with innovative “2.0” business models that are self-sustaining and provide sustaining methods, staffing and seek additional revenue streams. • Rebuild internal staff and extended team with top freelancers and contractors. • Imagine new ways to provide an “umbrella” organization for the culinary community. • Assemble neighborhood advisory taskforce, address needs and implement cutting-edge marketing and branding campaigns to drive awareness and visitation to all corners of the destination. • Consult with marketing and communications services for marquee brand-defining community events.

NEWP ORT BE ACH A ND CO.CO M

S.W.O.T ANALYSIS

STRENGTHS ..................................................................

COMMITTED STAFF, EXECUTIVE COMMITTEE AND BOARD OF DIRECTORS STRONG CITY COUNCIL AND CITY STAFF ACCREDITED DESTINATION- MARKETING ORGANIZATION (8 YEARS WITH DISTINCTION) CERTIFIED DESTINATION MANAGEMENT EXECUTIVE (CDME) TEAM INDUSTRY LEADERS SMALL BUT MIGHTY MARKETING AND SALES EXPERTS INNOVATIVE COMMUNITY- MARKETING ORGANIZATION MODEL, STRONG COMPANY CORE VALUES, BENEFITS, EDUCATIONAL OPPORTUNITIES, TEAM SPIRIT, OFFICE SPACE, COMPANY EVENTS AND COLLABORATION RESULTING IN AMAZING WORK PRODUCTIVITY, RESULTS AND ACHIEVEMENTS

WEAKNESSES

............................................................... .......................................................................................

CORPORATE AUDIENCE FUTURE MAP

COMPETITIVE JOB MARKET, SALARY EXPECTATIONS NO CENTRALIZED HUMAN RESOURCES/ INFORMATION TECHNOLOGY DEPARTMENTS MIXED SUPPORT FOR TOURISM LIMITED CONVENTION, MEETING AND EVENT FACILITIES/VENUES LIMITED AMATEUR SPORTS FACILITIES STRONG ECONOMY MAKES COST OF SERVICES MORE EXPENSIVE HOTEL CLOSURES CONTINUE DUE TO COVID-19 PANDEMIC (AFFECTING REVENUE) HOTEL CLOSURES DUE TO RENOVATIONS (AFFECTING REVENUE) COMPETITIVE PARITY VS OTHER DMO BUDGETS FOR MARKETING AND BUSINESS EXECUTIONS

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PREMIER DESTINATION PRODUCT 10-YEAR TBID AND TOT CONTRACTS WITH THE CITY OF NEWPORT BEACH APPEALING OFFICE INFRASTRUCTURE, ENVIRONMENT AND SCENIC LOCATION VISIT CALIFORNIA, A MARKETING POWERHOUSE THAT LEADS AND SETS THE AGENDA FOR ALL DMO’S IN STATE

ADJUST TO REDUCED STAFF DUE TO COVID-19 REVENUE SHORTFALLS

F I S CA L Y E A RS 20 2 3 & 20 24 D EST I N AT I ON BUSI NES S PL AN

VIDEO/TELEVISION STUDIO HIGH-TECH, DIGITAL VIDEO EQUIPMENT (DRONE, VIRTUAL-REALITY AND HIGH-DEFINITION 4K CAMERAS) HIGHLY COMPETITIVE TOT AND TBID BUDGETS EVEN WITH COVID-19 REVENUE REDUCTIONS ABILITY TO PIVOT, PLAN FOR WORST-CASE SCENARIOS CHANGING LANDSCAPE THAT WILL GENERATE INCREASED REVENUE VIA LUXURY HOTELS AND RETAIL STORES

THREATS

............

OPPORTUNITIES

...........................................................

CITY AND BOARD OF DIRECTORS’ ENGAGEMENT PARTNER VENDORS AND PARTNERS TO NEGOTIATE BEST PRICE MAXIMIZE EFFICIENCIES LEADER IN THE DMO INDUSTRY STRONG INDUSTRY REPUTATION, STAFF EXPERTISE, TEAM AND ORGANIZATION, CREDENTIALED STAFF, ACCREDITED COMPANY EVOLVE TECHNOLOGY USED

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GLOBAL PANDEMICS, COVID-19 VARIANTS/NEW STRAINS, TRAVEL BANS & QUARANTINES ECONOMIC RECESSION, INFLATION, STAGNATION ECONOMIC AND POLITICAL UNCERTAINTY/INSTABILITY/PROTESTS FLUCTUATING FOREIGN-EXCHANGE RATES TRIBAL POLITICAL DISCOURSE SHARING ECONOMY (SHORT-TERM RENTALS/RIDESHARE) VALUE-ADDED TAXES (VAT) ON SERVICES PURCHASED OVERSEAS

CONTINUE TO MAINTAIN POSITIVE CULTURE

INCREASED LOCAL COMPETITION (EXAMPLES: WALDORF-ASTORIA, JW MARRIOTT REBRANDS IN DANA POINT)

REPORTS AND DATA THAT PROVIDE INSIGHT ON VALUE OF TOURISM

HOTEL UPGRADES, NEW HOTELS AND MEETING VENUES

NEWLY RENOVATED, ELEVATED HOTELS: VEA NEWPORT BEACH, A MARRIOTT RESORT & SPA AND PENDRY

THIRD-PARTY COMMISSION STRUCTURES

REPORTS AND DATA THAT PROVIDE INSIGHT ON VALUE OF TOURISM

HIGH COST OF EMPLOYEE BENEFITS (HEALTHCARE, DENTAL, VISION, LIFE AND DISABILITY INSURANCE; 401K, ETC.)

BOARD REPORTING: MAKING CONTENT ENGAGING AND RELEVANT TO BOARD MEMBERS

NATURAL/WEATHER-RELATED DISASTERS

COMPETING GLOBAL DESTINATIONS WITH NEW HOTELS AND NEW MEETING SPACE

ADVOCATE FOR NEW HOTEL, TRANSPORTATION AND EVENT VENUES TO 2024 WORLD CUP AND 2028 SUMMER OLYMPICS ALL IN AND AROUND LOS ANGELES METRO AREA

SIGNIFICANT HOTEL LEADERSHIP CHANGES

MARKETING CONSULTANCY AND EXPERTISE TO BENEFIT PARTNERS

RUSSIA-UKRAINE WAR AND ITS GLOBAL IMPACT ON ECONOMY AND TRAVEL

ADA COMPLIANT WEBSITES AND THREAT OF LAWSUITS

NEWP ORT BE ACH A ND CO.CO M

CORPORATE AUDIENCE BUSINESS OBJECTIVES For the past two years, the world has faced the greatest workplace disruption in generations. Newport Beach & Company is committed to meeting this watershed moment by rolling out a variety of new ways we do business, from hybrid scheduling to a complete office renovation. Newport Beach & Company and Visit Newport Beach, Inc. jointly present this integrated administration, information-technology, finance, marketing, and group sales and services plan to meet the moment in workplace and business changes in a post-COVID-19 world, deepen engagement levels with the staff and boards of directors of both companies and the TBID board of directors and invest in people and culture to increase productivity; generate efficiencies; reduce costs and attract, satisfy and retain quality employees and board members for the two organizations. As we pivot as an organization to new leisure marketing challenges and opportunities, Newport Beach & Company looks forward to generating incremental visitor spending by emphasizing the luxury renaissance in our hotel, resort, and retail product, while promoting and marketing our resilient partners, hotels, local investors and residents that will reinvigorate our mojo, spirit and results as destination marketers in fiscal years 2023 and 2024. Newport Beach & Company plans to engage its employees, committees, and boards of directors in new, innovative ways to ensure the long-term viability, success and results of Newport Beach & Company and its six subsidiary business units: • Visit Newport Beach, Inc. TOT (tourism-occupancy tax drives incremental tourism) • Visit Newport Beach, Inc. TBID (tourism business-improvement district generates incremental meetings business) • Dine Newport Beach (former partnership with the Newport Beach Restaurant Association—reimagined into culinary/restaurant tourism marketing) • Enterprise Newport Beach (new Neighborhood Advisory Taskforce/economic development) • Celebrate Newport Beach (brand-defining events): Newport Beach Film Festival (NBFF), NBFF Fall Honors/Variety 10 Actors to Watch, Christmas Boat Parade, Newport Beach Restaurant Week (possibly renewed), NBFF U.K. Honours/ Variety 10 Actors to Watch (London), and Hoag Classic. • Video Newport Beach/Newport Beach TV (Video production/government-access television channel) The cross-functional planning team developed this integrated business plan for the organization and board-of-directors customer segment with a management-by-objectives approach where objectives are quantifiable goals, strategies form the strategic approaches to reaching the benchmark objectives, and tactics are projects that support overarching strategies.

F I S CA L Y E A RS 20 2 3 & 20 24 D EST I N AT I ON BUSI NES S PL AN

OBJECTIVE 1 ENHANCE BOARD ENGAGEMENT

OBJECTIVE 2 A MODERN WORKPLACE TO MEET THE MOMENT & THE FUTURE

OBJECTIVE 3 PEOPLE + CULTURE

NEWP ORT BE ACH A ND CO.CO M

OBJECTIVE 1 - CORPORATE ENHANCE BOARD ENGAGEMENT ENHANCE ENGAGEMENT WITH THE BOARDS OF DIRECTORS OF NEWPORT BEACH & COMPANY, VISIT NEWPORT BEACH, INC., AND THE TOURISM BUSINESS IMPROVEMENT DISTRICT TO AIM FOR 100-PERCENT PARTICIPATION AT BOARD MEETINGS, ANNUAL MARKETING OUTLOOK DINNER AND OTHER COMPANY FUNCTIONS.

STRATEGY Develop a communications-and-outreach strategy to board members of all three of our companies/organizations in an effort to increase board engagement, attendance and commitment to each organization. TACTICS:

• Re-imagine the Annual Marketing Outlook Dinner into two separate events to showcase the “look ahead” in early summer partner breakfast meeting when the new two-year Destination Business Plan is unveiled, and a “Year in Review” event and tourism awards reception in the fall. • June 2023: Newport Beach & Company Annual Marketing Outlook Breakfast (VEA Newport Beach, A Marriott Resort & Spa) • October 2023: Newport Beach & Company Annual Dinner & Tourism Awards (VEA Newport Beach, A Marriott Resort & Spa) • Continue quarterly e-Newsletters with messaging from the president and CEO to partners, board members and community leaders. • Continue weekly insights newsletter with economic dashboard to provide up-to-date vital research and data. • Bring in board members for focus group and task forces where needed. • Review functionality of processes for board meetings. • Continue to create engaging board meetings with guest speakers. • Create a short, highlight video about the companies, business units, mission, vision and economic impact to the destination.

OBJECTIVE 2 - CORPORATE A MODERN WORKPLACE TO MEET THE MOMENT A COMPLETE REIMAGINATION OF HOW WE DO BUSINESS WILL BE UNVEILED THIS FISCAL YEAR, FROM THE ADOPTION OF THE HYBRID SCHEDULE TO A NEWLY RENOVATED OFFICE WITH OPEN-PLAN SEATING TO ENCOURAGE COLLABORATION AND IDEATION. WITH THE NEW HYBRID MODEL, EXAMINE AND POSSIBLY REINVENT ALL BUSINESS TECHNOLOGY PROCESSES, WORKFLOW AND PROJECT MANAGEMENT THROUGHOUT THE COMPANY.

F I S CA L Y E A RS 20 2 3 & 20 24 D EST I N AT I ON BUSI NES S PL AN

STRATEGY

Given the new luxury renaissance the destination is experiencing, Newport Beach & Company is refreshing its HQ with a brand-new space that reflects the Newport Beach brand and functions for its new hybrid work schedule, while saving on annual lease expenses. The team will also look to improve company efficiency and performance with new cutting-edge technology solutions to function in the hybrid work environment. TACTICS:

• Create an immerse and reinvigorating HQ environment that brings the Newport Beach brand to life and energize employees with open seating to encourage cross-department collaboration. • To protect the safety of the employees and community, mandatory vaccine status is required for employment with Newport Beach & Company. • Discover best-in-class computers, cloud-based platforms and software to give employees resources to function in new hybrid environment. • Monitor all processes for project-and-time-management critical paths throughout the company to find gaps, bottlenecks or issues that impede successful outcomes. • Explore new time-management software solution to manage and approve paid-time-off requests and hourly employee timecards.

OBJECTIVE 3 - CORPORATE PEOPLE + CULTURE TO COMPETE FOR AND RETAIN TALENT, BECOME THE PREFERRED REGIONAL DMO EMPLOYER. FOSTER A CULTURE TO INCREASE EMPLOYEE PERFORMANCE, MORALE AND RETENTION

STRATEGY

AND OTHER MEASURES OF EMPLOYEE SATISFACTION.

Centralize several employee benefits, offer letters and employee-facing information into a formalized process with clear accountability. TACTICS:

• Leadership to continually review and reinvest in company culture and employees to retain and attract top talent. • Continue to assess company morale to ensure a healthy workplace. • Continue wellness benefits and stay and play benefits. • Continue annual retreats to brainstorm ways to continually improve • Continue the employee value-proposition report showing each employee’s total compensation (including base salary, benefits, payroll taxes and other hidden compensation), so employees know their total monetary value to the company. • Prepare the report for each employee and deliver that report following their annual performance reviews. • Continue successful holiday lunch. • Continue infusing the company’s core values into everything we do. • Continue to look for enhancements, features and new tools to maximize return on investment. • Continue to support external, job-related educational opportunities for all employees.

NEWP ORT BE ACH A ND CO.CO M

FY2023 CORPORATE AUDIENCE INITIATIVES CALENDAR COMPANY EVENTS

JULY

AUGUST

CHRISTMAS BOAT PARADE

BOARD MEETINGS

EXECUTIVE COMMITTEE MEETINGS NEWPORT BEACH FILM FESTIVAL U.K. HONOURS/VARIETY 10 BRITS TO WATCH NEWPORT BEACH FILM FESTIVAL

ANNUAL DINNER & TOURISM AWARDS

NATIONAL TRAVEL & TOURISM WEEK

HOLIDAY PARTNER AND STAFF EVENT

HOAG CLASSIC NEWPORT BEACH & COMPANY MARKETING OUTLOOK BREAKFAST

F I S CA L Y E A RS 20 2 3 & 20 24 D EST I N AT I ON BUSI NES S PL AN

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER

JANUARY

FEBRUARY

MARCH

APRIL

MAY

JUNE

NEWP ORT BE ACH A ND CO.CO M

FY2023 & FY2024 BUDGETS VISIT NEWPORT BEACH INC. (TBID) GROUP SALES & MARKETING FY2023 & FY2024 VISIT NEWPORT BEACH INC. (TBID) GROUP SALES & MARKETING

BUDGET FY2023

BUDGET FY2024

Revenue

$3,806,384

$4,034,000

Operating Expenses

$2,152,565

$2,200,000

Advertising

$226,000

$145,000

Community Relations

$110,000

$100,000

Digital Marketing

$190,800

$85,000

PR/Communications

$18,000

Trade Shows

$353,400

$245,000

Sales Group Enhancement Credit

$290,000

$275,000

Hosted Industry Events

$99,000

$100,000

Industry Partnerships/Sponsorships

$286,700

$285,000

Site Inspections

$38,200

$40,000

Client Events

$123,500

$100,000

$1,000

Database/Prospecting

$139,100

$75,000

Special Promotions/Marketing Collateral

$18,500

$15,000

$458,000

$350,000

Conference Services

Customized Destination Support

ADVERTISING COMMUNITY RELATIONS

10%

19%

DIGITAL MARKETING/WEBSITE PR/COMMUNICATIONS

TRADE SHOWS

8% 6%

SALES GROUP ENHANCEMENT CREDIT HOSTED INDUSTRY EVENTS INDUSTRY PARTNERSHIPS/SPONSORSHIPS

15%

SITE INSPECTIONS CLIENT EVENTS

12%

CONFERENCE SERVICES

12%

DATABASE/PROSPECTING SPECIAL PROMOTIONS/MARKETING COLLATERAL CUSTOMIZED DESTINATION SUPPORT

F I S CA L Y E A RS 20 2 3 & 20 24 D EST I N AT I ON BUSI NES S PL AN

VISIT NEWPORT BEACH, INC. (TOT) LEISURE FY2023 & FY2024 VISIT NEWPORT BEACH, INC. (TOT) LEISURE BUDGET ALLOCATION Revenue Operating Expenses Advertising Community Relations

BUDGET FY2023

BUDGET FY2024

$5,622,499

$5,847,400

$144,595

$149,000

$2,832,200

$1,241,400

$119,000

$115,000

Collateral

$27,500

$22,000

International Marketing

$713,800

$685,000

Digital Marketing

$505,820

$475,000

PR/Communications

$268,100

$260,000

$2,743,765

$2,900,000

Fees and Contributions to Newport Beach & Company

6% ADVERTISING

11%

COMMUNITY RELATIONS COLLATERAL

16%

INTERNATIONAL MARKETING

63%

DIGITAL MARKETING PR/COMMUNICATIONS

1% 3%

NEWPORT BEACH & COMPANY FY2023 & FY2024 BUDGET ALLOCATION NEWPORT BEACH & COMPANY

BUDGET FY2023

BUDGET FY2024

Revenue

$3,016,920

$3,137,597

Operating Expenses

$2,751,770

$2,861,197

Advertising

$152,950

$160,000

Community Relations

$93,500

$97,000

Collateral

$11,000

$11,400

Website

$5,200

$5,400

PR/Communications

$2,500

$2,600

2% 1%

ADVERTISING COMMUNITY RELATIONS

35%

58%

COLLATERAL WEBSITE/DIGITAL PR/COMMUNICATIONS

F = FORECAST

NEWP ORT BE ACH A ND CO.CO M

FY2023 & FY2024 GOALS VISIT NEWPORT BEACH, INC. TOURISM-OCCUPANCY TAX (TOT) GOALS FY2022 GOALS

FY2022 YTD ACHIEVED AS OF 4/28/22*

FY2023 FORECAST GOAL

FY2024 FORECAST GOAL

TOPLINE GOALS & KEY PERFORMANCE INDICATORS FOR LEISURE TRAVEL TO NEWPORT BEACH TOURISM-OCCUPANCY TAX (TOT) REVENUE TO THE CITY OF NEWPORT BEACH MARKETING CAMPAIGN ROOM NIGHTS MARKETING CAMPAIGN ECONOMIC IMPACT

$19,000,000

$22,023,000

$33,889,024

$35,245,122

30,000

137,273

140,000

150,000

$20,000,000

( ESTIMATED )

$17,800,000 $40,000,000 $46,000,000

DIGITAL MARKETING (OWNED & PAID MEDIA CHANNELS) VNB WEB VISITS REFERRALS TO PARTNER VISITS

1,000,000

1,030,311

1,480,000

1,628,000

103,000

4,500

9,500

10,925

75,000,000

132,125,915

145,000,000

175,000,000

125,000

242,751

350,000

430,000

ADVERTISING (PAID MEDIA CHANNELS) TOTAL AD IMPRESSIONS ONLINE AD CLICKS TO SITE

MEDIA RELATIONS, CONTENT MARKETING & SOCIAL MEDIA (EARNED & OWNED MEDIA CHANNELS) 1,000

956

1,100

1,200

KEY CONSUMER MEDIA PLACEMENTS

448

252

300

325

KEY TRADE MEDIA PLACEMENTS (B2B)

100

230,000

225,634

250,000

270,000

MEDIA PLACEMENTS (DOMESTIC + INTERNATIONAL)

SOCIAL MEDIA FOLLOWERS F = FORECAST

*MARKETING CAMPAIGN GOALS ACHIEVED AS OF APRIL 20, 2022. AD EFFECTIVENESS STUDIES TO MEASURE ECONOMIC IMPACT AND ROOM NIGHTS FOR WINTER & SPRING CAMPAIGNS ARE IMPLEMENTED AFTER LEISURE TRAVEL OCCURS. WINTER CAMPAIGN RESULTS HAVE NOT BEEN FINALIZED BY THIRD-PARTY RESEARCH VENDOR. MEDIA ARE STILL RUNNING FOR SPRING CAMPAIGN AND TRAVEL HAS NOT YET OCCURRED. FINAL RESULTS DUE SEPTEMBER 1, 2022. ** TRADE WAS HIGHER DUE TO GREATER VOLUME OF BUSINESS STORY/PANDEMIC-RELATED PLACEMENTS.

F I S CA L Y E A RS 20 2 3 & 20 24 D EST I N AT I ON BUSI NES S PL AN

NEWPORT BEACH & COMPANY BUSINESS-UNIT GOALS FY2022 GOALS

FY2022 YTD ACHIEVED AS OF 4/28/22*

FY2023 FORECAST GOAL

FY2024 FORECAST GOAL

CELEBRATE NEWPORT BEACH: BRAND-DEFINING EVENT MARKETING NBFF U.K. HONOURS/VARIETY 10 BRITS TO WATCH

N/A

75 MEDIA PLACEMENTS 5,500,000 ONLINE VIEWS

NEWPORT BEACH FILM FESTIVAL AD IMPRESSIONS

N/A

6,000,000

CHRISTMAS BOAT PARADE AD IMPRESSIONS

N/A

5,400,000

HOAG CLASSIC AD IMPRESSIONS

N/A

6,000,000

VIDEO NEWPORT BEACH: NEWPORT BEACH TV + DESTINATION LIFESTYLE VIDEO PROGRAMMING NEW VISIT NEWPORT BEACH EPISODES CREATED NEWPORT BEACH TV PRODUCTION HOURS

N/A

1,400

1,800

F = FORECAST

NEWP ORT BE ACH A ND CO.CO M

F I S CA L Y E A RS 20 2 3 & 20 24 D EST I N AT I ON BUSI NES S PL AN

DESTINATION RESEARCH, FORECASTS & BUSINESS INTELLIGENCE LEISURE & MEETINGS

NEWP ORT BE ACH A ND CO.CO M

LEISURE TRAVELER RESEARCH The City of Newport Beach has contracted with Newport Beach & Company to foster a strong tourism environment to attract visitors with strategic marketing efforts, and to engage them in market to create a positive experience for return visitation. Newport Beach & Company tracks and evaluates the effectiveness and ROI for marketing initiatives, partnering with research companies to track incremental visitor trips, overnight stays and spend generated by marketing campaigns. Newport Beach & Company will continue to build upon and refine existing marketing strategies while seeking new and imaginative ways to increase and extend visitation and overnight stays in Newport Beach. Newport Beach & Company has partnered with Tourism Economics, an Oxford economics company, to analyze impact of COVID-19, recovery and tourism forecast in Newport Beach. The research and forecast in the following pages include in-state, domestic and international. Leveraging qualitative and quantitative data as well best practices, and resources, Newport Beach & Company will plan and execute integrated campaigns to accomplish the objectives set forth to keep Newport Beach at the forefront of travel trends and drive incremental visitation to Newport Beach.

F I S CA L Y E A RS 20 2 3 & 20 24 D EST I N AT I ON BUSI NES S PL AN

IMPACT OF TOURISM IN NEWPORT BEACH IF YOU TOOK THE TOURISM INDUSTRY AWAY FROM NEWPORT BEACH… TO KEEP NEWPORT BEACH GOVERNMENT SERVICES FLOWING AT THE SAME LEVELS: IT WOULD COST EVERY NEWPORT BEACH HOUSEHOLD AN ADDITIONAL

1,139

IN TAXES PER YEAR. TO KEEP THE NEWPORT BEACH ECONOMY CHURNING AT THE SAME LEVELS: IT WOULD COST EVERY NEWPORT BEACH HOUSEHOLD AN ADDITIONAL

43,922

IN ADDITIONAL LOCAL SPENDING PER YEAR.

7.3M TOTAL VISITATION

297.31

AVG DAILY SPEND PER PARTY

1.2B

VISITOR SPENDING

5.5

AVG NUMBER OF TRIPS

NEWP ORT BE ACH A ND CO.CO M

NEWPORT BEACH HOTEL OUTLOOK The COVID-19 pandemic had a devastating impact on the global and tourism industry, and impact on Newport Beach was no exception. The successful deployment of the vaccine in 1Q2021 in the U.S. began to restore domestic leisure segment. Regional in-state travel was the first to begin to recover, followed by a revival of a wider domestic long-haul travel as travel restrictions were gradually lifted.

NEWPORT BEACH HOTEL OUTLOOK SUPPLY

DEMAND

OCCUPANCY

REVENUE

ADR

REVPAR

2012

884,395

638,151

72%

$100,389,591

$157

$114

2013

885,036

635,166

72%

$106,609,646

$168

$120

2014

885,125

662,640

75%

$117,078,820

$177

$132

2015

885,125

684,583

77%

$127,338,963

$186

$144

2016

1,146,345

889,734

78%

$215,590,963

$242

$188

2017

1,172,292

866,671

74%

$218,284,503

$252

$186

2018

1,210,810

863,597

71%

$227,966,819

$264

$188

2019

1,223,115

925,575

76%

$240,412,406

$260

$197

2020

954,588

412,242

43%

$114,013,606

$277

$119

2021

1,121,021

575,105

51%

$187,426,490

$326

$167

2022F

1,225,695

842,601

69%

$292,106,060

$347

$238

2023F

1,276,915

956,997

75%

$344,012,851

$359

$269

2024F

1,279,444

1,014,902

79%

$377,817,410

$372

$295

NEWPORT BEACH HOTEL OUTLOOK, PERCENT RELATIVE TO 2019 SUPPLY

DEMAND

OCCUPANCY

REVENUE

ADR

REVPAR

2020

78%

45%

57%

47%

106%

61%

2021

92%

62%

68%

78%

125%

85%

2022F

100%

91%

122%

133%

121%

2023F

104%

103%

99%

143%

138%

137%

2024F

105%

110%

105%

157%

143%

150%

SOURCE: TOURISM ECONOMICS F= FORECAST

F I S CA L Y E A RS 20 2 3 & 20 24 D EST I N AT I ON BUSI NES S PL AN

ADR= AVERAGE DAILY RATE

REVPAR= REVENUE PER AVAILABLE ROOM

The leisure segment dominated during the pandemic, and Newport Beach’s offerings uniquely positioned it to reap the benefits in terms of high ADR. While ADR across the U.S. fell 21 percent below 2019 levels, Newport Beach ADR grew a remarkable 6 percent in 2020. Strong economic fundamentals indicate lodging supply to be restored to its 2019 benchmark in 2022 with an increase of 4 percent in 2023 when the luxury hotel brand Pendry’s conversion of 295 guestroom Fashion Island Hotel into Pendry Newport Beach will be completed. This development along with luxury furniture brand RH’s announcement about the spring 2024 opening of its new four-story, 80,000-square-foot furniture gallery and restaurant in Fashion Island, which will be one-of-its-kind attraction in Orange County, will set Newport Beach apart from its competitors.

180%

$350,000,000

160% 140%

$300,000,000

187,426,490

292,106,060

344,012,851

377,817,410

80%

2018 2019 2020 2021 2022F 2023F 2024F

60% 40% 20% 0%

OCCUPANCY ANNUAL PERFORMANCE

ANNUAL GROWTH RATE

120% 100% 80% 72%

77%

72%

69%

75%

79%

72%

75%

77%

78%

74%

71%

76%

43%

2012

2013

2014

2015

2016

2017

2018

2019

2020 2021 2022F 2023F 2024F

OCCUPANCY

ANNUAL GROWTH RATE

120%

$300

100%

$250

80%

$200

60%

2012

ADR

264

260

277

326

347

359

372

252 $

2016 2017

40%

242

186

2013 2014 2015

177

168

157

$150

ANNUAL GROWTH RATE

140%

$350

AVERAGE HOTEL RATE

76%

51%

$400

71%

43%

AVERAGE HOTEL RATE ANNUAL PERFORMANCE

$50

74%

40% 20%

$100

78%

79%

60%

72%

HOTEL OCCUPANCY RATE (%)

140%

75%

REVENUE

69%

240,412,406 $

100%

227,966,819 $

2012 2013 2014 2015 2016 2017

114,0 13,60 6

120%

51%

218,284,503

$50,000,000

$100,000,000

215,590,963

$150,000,000

$200,000,000

10 0,3 89 ,59 1 $ 10 6,6 09 ,64 $ 6 117 ,07 8,8 20 $ 127 ,33 8,9 63

$250,000,000

ANNUAL GROWTH RATE

$400,000,000

ANNUAL HOTEL REVENUE

ANNUAL TOTAL HOTEL REVENUE

20% 0%

2018 2019 2020 2021 2022F 2023F 2024F

ANNUAL GROWTH RATE

SOURCE: TOURISM ECONOMICS

NEWP ORT BE ACH A ND CO.CO M

LEISURE TRAVELER FEEDER MARKETS Applying quantitative and qualitative data to reach travelers most effectively, Newport Beach & Company has divided potential visitor markets into two categories: primary and opportunity. Factors and analysis used to define markets include historical visitation, propensity, household income, market cost efficiency and accessibility. SACRAMENTO • 3.8 percent of overnight visitors • Nielsen Ranking: 20

SAN FRANCISCO

• Drive Market/Daily flight to SNA

• 4.7 percent of overnight visitors • Nielsen Ranking: 6 • Drive Market/ Daily flight to SNA

LOS ANGELES • 40.8 percent of overnight visitors • Nielsen Ranking: 2 • Drive Market

SAN DIEGO

PHOENIX

• 5.3 percent of overnight visitors

• 7.0 percent of overnight visitors

• Nielsen Ranking: 27

• Nielsen Ranking: 11

• Drive Market

• Drive Market / Daily flight to SNA

F I S CA L Y E A RS 20 2 3 & 20 24 D EST I N AT I ON BUSI NES S PL AN

Primary markets comprise at least 60 percent of all overnight visitors to Newport Beach. Los Angeles, San Diego, Phoenix and San Francisco fall into this category and have the additional benefit of being drive markets, which allows for more marketing opportunities with short planning periods. Opportunity markets have lower overnight visitation but are strong enough for conversion with increased brand awareness and a targeted call-to-action. Many of these markets, such as Denver and Salt Lake City, merit increased marketing efforts as overnight visitation trends up following the ease of COVID-19 restrictions.

PRIMARY MARKETS SALT LAKE CITY • 2.5 percent of overnight visitors

OPPORTUNITY MARKETS

• Nielsen Ranking: 30 • Daily flight to SNA

DENVER • 1.8 percent of overnight visitors • Nielsen Ranking: 16 • Daily flight to SNA

LAS VEGAS

DALLAS/FORTH WORTH

• 3.9 percent of overnight visitors

• 1.8 percent of overnight visitors

• Nielsen Ranking: 40

• Nielsen Ranking: 5

• Drive Market / Daily flight to SNA

• Daily flight to SNA

NEWP ORT BE ACH A ND CO.CO M

COMPETITIVE SET With the perfect combination of affluence, quaint charm, casual glamour and attention to detail, Newport Beach offers travelers a unique coastal retreat. Though nowhere else is Newport Beach, understanding the competitive landscape provides important insight. After a thorough competitor analysis, Newport Beach & Company has identified top competitive leisure traveler markets: Santa Barbara, Santa Monica, Palm Springs, Beverly Hills, Huntington Beach and La Jolla. All the destinations are small- to mid-sized markets in Southern California, with an emphasis on upscale to luxury accommodations. They offer premium dining experiences, great shopping, upscale lifestyle, scenic beaches and a relaxing escape. While each market has distinct offerings within these areas, they hold a similar position in visitor’s minds when planning a trip, validated by our digital audience tracking system. We monitor each of these destinations in both performance and marketing efforts. Over the past year, Newport Beach kept in line with the major performance metrics during the COVID-19 recovery period.

F I S CA L Y E A RS 20 2 3 & 20 24 D EST I N AT I ON BUSI NES S PL AN

COMPETITIVE HOTEL RATES COMPETITIVE HOTEL OCCUPANCY

$600

$500

70.0% 65.0% 60.0%

$400

OCCUPANCY RATE

55.0%

ADR

$300

$200

50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0%

A S H H LA GS ICA ILL AC RBAR AC OL ON RIN BE BE YH AJ M A L L T SP N B A R R O A LM VE NT PO GT NT BE PA SA EW TIN SA N N HU

67.9%

61.5%

59.5%

58.4%

56.6%

56.3%

594

5.0%

315

264 $

239 $

286

222 $

172 $

10.0%

46.7%

15.0%

$100

0.0%

S S A A A H H ILL AR AC AC ONIC JOLL ING BE BE RB Y H SPR A M L A T N L R B A O OR LM VE TA NT GT WP PA BE SA AN TIN S NE N HU

COMPETITIVE ROOMS AVAILABLE OCCUPANCY

ADR

ROOMS

ANAHEIM

31.3%

15,449

BEVERLY HILLS

31.2%

478

2,246

DANA POINT

37.8%

355

1,461

HUNTINGTON BEACH

51.3%

193

2,379

IRVINE

43.1%

111

4,301

LA JOLLA

46.0%

198

2,770

NEWPORT BEACH

40.2%

295

5,721

PALM SPRINGS

47.1%

154

5,085

SAN DIEGO

46.1%

126

38,456

SANTA BARBARA

57.5%

256

3,873 SOURCE: TOURISM ECONOMICS

NEWP ORT BE ACH A ND CO.CO M

CALIFORNIA TRAVEL OUTLOOK The pandemic and its related public health restrictions caused an unprecedented decline in tourism spending, which fell from $144.9B in 2019 to $65.1B in 2020. When the U.S. border closed to almost all non-essential travel, the international market took the hardest hit, with spending dropping 81 percent in 2020 to $5.3B. Meanwhile, the domestic market declined 49 percent to $59.8B.

A positive turn came in 2021, as the vaccine became widely available and travel restrictions were gradually lifted. Drive-market visitors began to return, followed by more confident long-haul domestic travelers, business travel and the return of international markets. As a result, tourism spending in California recovered to 97.4B in 2021.

Travel-related spending from domestic visitors is expected to recover to 96 percent to 2019 levels in 2022, while international spending will recover to 60 percent. Total travel-related spending in California is not expected to reach pre-pandemic levels until 2023. Overall, leisure travel could recover to 95 percent of 2019 in 2022, while business-related travel will recover by 70 percent.

F I S CA L Y E A RS 20 2 3 & 20 24 D EST I N AT I ON BUSI NES S PL AN

INTERNATIONAL ARRIVALS TO CALIFORNIA- RELATIVE TO 2019. 160.8

166.2

144.6 $

155.9

129.5 $

97.4

144.9 $

140.3 $

65.1

133.3 $

126.4 $

(JUNE 2021-FEBRUARY 2022)

- 88% - 98%

20 16 20 17 20 18 20 19 20 20 20 21 20 22 F 20 23 F 20 24 F 20 25 F 20 26 F

TOTAL SPENDING ($BILLIONS)

TOTAL VISITOR SPENDING IN CALIFORNIA

- 95% - 73% -97% OVERSEAS CHINA

EUROPE

CALIFORNIA TOURISM SUMMARY (ANNUAL PERCENT CHANGE) TOTAL VISITS

MIDDLE U.K. EAST AND NORTH AFRICA

2014

2015

2016

2017

2018

3.5%

4.8%

1.9%

2.0%

0.0%

2019 2020 2021 2022F 2024F 2025F20192026F INTERNATIONAL ARRIVALS TO UNITED STATES -2023F COMPARED TO SAME MONTH 1.6%

-50.8%

52.0%

22.6%

6.9%

5.0%

2.7%

1.8%

3.4% 4.1%

4.9% 5.3%

1.9% 2.2%

2.0% 2.2%

2.8% 2.5%

1.8% 2.1%

-48.9 -45.3%

52.4% 51.6%

19.2% 14.2%

6.0% 4.7%

4.5% 3.3%

2.5% 2.6%

1.6% 1.5%

5.1%

3.6%

1.6%

1.3%

3.0%

-1.2%

-79.2%

40.2%

161.4%

23.7%

12.3%

5.3%

4.3% 166.2

DOMESTIC TOTAL VISITS LEISURE VISITS

INTERNATIONAL TOTAL VISITS TOTAL EXPENDITURES ($B)

117.5

121.9

126.4

133.3

140.3

144.9

65.1

97.4

129.5

144.6

155.9

160.8

% CHANGE

5.5%

3.8%

3.7%

5.5%

5.2%

3.3%

-55.1%

49.6%

32.9%

11.7%

7.8%

3.2%

3.3%

DOMESTIC

94.3

97.5

101.1

106.2

112.0

116.8

59.8

92.0

112.6

121.0

127.5

130.2

134.4

% CHANGE

3.2%

4.8%

3.4%

3.7%

5.0%

5.5%

4.3%

-48.8%

53.9%

22.3%

7.4%

5.4%

2.1%

INTERNATIONAL

23.1

24.4

25.3

27.1

28.3

28.1

5.3

5.4

16.9

23.6

28.4

30.7

31.8

% CHANGE

8.3%

5.6%

3.4%

7.5%

4.3%

-0.6%

-81.2%

1.3%

215.2%

39.9%

20.1%

8.0%

3.6%

F = FORECAST SOURCE: VISIT CALIFORNIA - NTTO, BEA, TOURISM ECONOMICS

NEWP ORT BE ACH A ND CO.CO M

U.S. TRAVEL TRENDS INDEX The U.S. Travel Association releases a monthly Travel Trends Index (TTI) report, providing an analysis conducted by Oxford Economics of current trends in travel demand as well as a near-term COVID-19 recovery outlook for the direction and pace of travel to and within the US. As reported in February 2022, the U.S. economy remains strong despite persistent high inflation and geopolitical tensions creating uncertainty. The job market is improving, wages are rising, businesses are increasing investment, and an improved health situation paired with eased restrictions are boosting confidence among leisure and business travelers. Together, these factors should facilitate a spring rebound as the weather warms and the peak leisure travel season approaches. • The pandemic has resulted in $740B in cumulative losses for the U.S. travel economy through January 2022. • An improving health situation, renewed optimism, pent-up demand, and sizable excess savings underpin the travel industry’s recovery. Consumer travel sentiment indexes at 8 percent for percentage of American travelers that are ready to travel in the next 12 months — the highest level since the start of the pandemic. • The pace for DMO/CVB group room nights on the books indicates a dip in 1Q2022, particularly January 2022 due to the impact of the Omicron wave, but a sizable return of Group volume in subsequent quarters. 82 percent of business travel organizations feels their employees are willing to travel in the current environment, up from 54 percent in January 2022. • International travel intentions are strong. In most markets, the percentage of those who intend to travel internationally over the next 12 months was more than 10 percentage points higher in February 2022 than February 2021.

F I S CA L Y E A RS 20 2 3 & 20 24 D EST I N AT I ON BUSI NES S PL AN

• Organic search sessions for destination marketing organization websites registered a 26 percent increase over 2019 levels in January 2022. They are on pace for a 32 percent expansion through the first half of February 2022. • Short-term rental demand strengthened in January 2022, rising to 22 percent above its 2019 level. • As of February 2022, higher gas prices have not deterred people from traveling. This was particularly noticeable over Thanksgiving 2021, when road travel returned to nearly pre-pandemic levels and the national average for gas was around 3.40 per gallon.

U.S. TRAVEL FORECAST Following one of the most severe economic shocks of the past century in 2020, the U.S. economy vaulted into one of the most rapid recoveries in modern history in 2021. The recovery process is far from complete, however, and the next stage will be trickier to navigate. While an improving health backdrop, solid household finances, and rebounding employment should support consumer spending, the shift from public to private sector-driven growth will be a delicate balancing act and inflation risks remain tilted to the upside. Labor and capital supply suffered extreme duress during the pandemic and are expected to rebound only gradually. The U.S. economy is displaying solid economic momentum, as evidenced by the February 2022 jobs report, yet it also faces shifting headwinds. Though the Omicron wave has been largely contained, higher inflation and greater uncertainty triggered by Russia’s invasion of Ukraine have emerged as key risks. It is anticipated that real GDP will grow 3.4 percent in 2022 and slow to 2.1 percent in 2023, but risks are tilted to the downside given the intensifying inflation shock, a growing fiscal drag, and a more hawkish Fed. It is expected that the Fed will raise the policy rate by a total of 175 basis points (bps) in 2022 to rein in inflation. Significant monetary policy tightening has prompted Tourism Economics to lower the GDP growth forecast for 2023 to 2.1 percent from 5.3 percent, with an expectation that growth will slow to 1.6 percent annualized by mid-2023. SOURCES: U.S. TRAVEL ASSOCIATION, TOURISM ECONOMICS

NEWP ORT BE ACH A ND CO.CO M

DOMESTIC TRAVEL FORECAST While U.S. domestic leisure travel underpinned the faster-than-expected travel recovery, the U.S. domestic business segment lagged and underperformed the expectations set forth in the Fall 2020 forecast. Spending in 2021 for this segment registered 50 percent of 2019 levels, down from 54 percent predicted one year earlier. The domestic business recovery should accelerate in 2022, reaching 76 percent of 2019 levels. This segment will achieve a full recovery in 2024, as of the latest forecast. The return of domestic business travel will help even out the recovery to include urban markets. A generally robust vaccination rollout, improving health situation, easing pandemic-related restrictions, and expansionary fiscal policy measures have supported the unwinding of excess savings and the rotation of consumer spending from goods to services, such as travel. This backdrop has supported the domestic leisure travel segment, which is now expected to reach 96 percent of its 2019 level in 2021 — six percentage points above the fall 2020 forecast. The forecast expects the domestic leisure segment to achieve a full recovery in 2022. The Travel Price Index (TPI), which accounts for travel-specific categories such as lodging away from home and transportation costs, is expected to rebound sooner than previously anticipated following its 5.8 percent decline in 2020. The TPI is projected to increase 10.6 percent in 2021 and remain above 3 percent annual growth in 2022 and 2023, before normalizing to 2.3 percent growth in 2024. The short-term outlook anticipates that the forecasted GDP growth of 3.4 percent in 2022 can withstand Fed tightening, though it is set to slow to 2.1 percent in 2023. The short-term outlook is driven by inflation shock stemming from the Russia-Ukraine war. The geopolitical tensions risk fueling stronger and more persistent inflation, which may affect consumer spending, pandemic response, supply chain impact on business investments, and monetary policies on rate hikes. It is estimated that recovery of international travel to the US should accelerate in 2022, reaching 72 percent of 2019 levels. The latest forecast anticipates that this segment will achieve full recovery in 2024.

F I S CA L Y E A RS 20 2 3 & 20 24 D EST I N AT I ON BUSI NES S PL AN

DOMESTIC LEISURE vs. BUSINESS LEISURE TRAVEL VOLUME RELATIVE TO 2019

DOMESTIC AUTO vs. AIR TRAVEL VOLUME RELATIVE TO 2019

106% 110% 104% 108% 96% 105%

2025F 2024F 2023F

80%

2022F

54%

2021

20%

100%

60%

BUSINESS

100%

2020

2021

2022F AUTO

107%

109%

2023F

2024F

2025F

AIR

LEISURE

DOMESTIC TRAVEL SPEND FORECAST - RELATIVE TO 2019

120%

DOMESTIC TRAVEL SPEND FORECAST - RELATIVE TO 2019

100%

120%

80%

100% 80%

60%

105%

$277B

$284B

2019

2020

2021

2022F

2023F

2024F

2025F

108%

103%

$252B

106%

93%

$206B

103%

76%

$136B

101%

50%

$88B

97%

32%

$270B

20%

77%

100%

40%

100%

60%

40%

113%

42%

120%

DOMESTIC BUSINESS TRAVEL SPENDING - RELATIVE TO 2019

20%

100%

109%

20% 0%

80%

104%

70%

40%

76% 40%

88%

71%

60%

101%

97%

89%

80%

96%

39%

2020

120%

$722B 2019

$555B 2020

$702B 2021

$726B 2022F

$745B 2023F

$766B 2024F

$776B 2025F

DOMESTIC PERSON TRIPS IN THE U.S. (MILLIONS) 2019 TOTAL % change

2020

2021

2022F

2023F

2024F

2025F

2318.0

1582.0

2021.0

2235.7

2398.2

2493.3

2529.9

1.8%

-31.8%

27.8%

10.6%

7.3%

4.0%

1.5%

491.1

By purpose Business

463.9

181.3

249.5

370.7

446.2

484.1

% change

1.1%

60.9%

37.6%

48.6%

20.4%

8.5%

1.5%

1854.1

1400.6

1771.4

1864.9

1952.0

2009.2

2038.4

1.9%

-24.5%

26.w5%

5.3%

4.7%

2.9%

1.5%

Leisure % change Hotel room demand Room nights % change

1293.1

829.9

1131.9

1290.6

1361.1

1405.4

1429.3

1.7%

-35.8%

36.4%

14.0%

5.5%

3.3%

1.7%

F = FORECAST SOURCE: U.S. DEPARTMENT OF COMMERCE-TRAVEL & TOURISM, TOURISM ECONOMICS, US TRAVEL ASSOCIATION

NEWP ORT BE ACH A ND CO.CO M

INTERNATIONAL TRAVEL SUMMARY Newport Beach & Company understands the importance of international travel to the destination. With higher spending and longer lengths of stays, international travelers are a significant visitor segment for Newport Beach. In 2019, international visitors accounted for $28B of California’s $145B in tourism spending. Newport Beach has four primary international markets:

CANADA CHINA MIDDLE EAST UNITED KINGDOM

Of these markets, Newport Beach & Company directly invests in marketing, media relations and travel-trade with offices the United Kingdom and Canada. For the Middle East and China, Newport Beach & Company is actively exploring opportunities for representation as international restrictions begin to ease. As the destination prepares to welcome increasing numbers of international visitors, Newport Beach & Company will also continue to keep a pulse on the jagged recovery period of ongoing COVID-19 outbreaks, evolving health protocols, safety regulations, and rapidly changing consumer sentiment around travel.

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INTERNATIONAL VISITS TO THE U.S. BY WORLD REGION RELATIVE TO 2019 35%

MIDDLE EAST & AFRICA ASIA PACIFIC

13%

EUROPE

15%

80% 73%

100%

82%

35%

AMERICAS

104%

108% 91%

2021

108%

2023F

2025F

INTERNATIONAL ARRIVALS TO UNITED STATES - COMPARED TO SAME MONTH 2019 0%

JUN-21

JULY-21

AUG-21

SEPT-21

OCT-21

NOV-21

DEC-21

JAN-22

-10% -20% -30% -40% -50% -60% -70% -80% -90% -100%

OVERSEAS

CANADA (AIR)

CHINA

EUROPE

MIDDLE EAST AND NORTH AFRICA

SOURCES: TOURISM ECONOMICS, US TRAVEL ASSOCIATION

NEWP ORT BE ACH A ND CO.CO M

CANADA MARKET PROFILE

Canada is a top inbound travel market for the United States and California. Travelers are drawn to Newport Beach’s warm weather and convenient access, with direct flights operating from John Wayne Airport (Orange County) and Vancouver. A majority of its population lives within 100 miles of the U.S. border, making Canada an ongoing opportunity for marketing expansion. The Canadian economy is expected to rapidly rebound once COVID-19 restrictions ease. GDP growth is forecasted at 4.1 percent in 2022, down from 4.3 percent previously, after rising 4.5 percent in 2021. Consumer Price Index (CPI) inflation held steady at a near two-decade high of 4.7 percent year-over-year in November. Inflation is forecasted to remain elevated in the near term, peaking at 5 percent before easing to the mid-2 percent range in early 2023 as supply bottlenecks clear and energy prices fall. The labor market closed on an upswing as 54,700 jobs gained in December 2021 pushed the unemployment rate down to 5.9 percent, the lowest since the pandemic began.

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Despite temporary disruptions from COVID-19 variants, it is expected that growing inflation concerns and a tight labor market will prompt the Bank of Canada to begin raising rates in July 2022, and again in October. It could start lifting rates even sooner and more quickly if variants prove less harmful to the economy, but it is believed that the Bank will stay on a cautious path given its apprehensions about high household debt and overvalued house prices. Notwithstanding economic concerns, Canadians are more willing to travel to destinations that are completely different from their own home or culture. They are aware that every trip is a “privilege” and hope for experiences that reflect that mindset. Despite feeling cautious towards travel, a new wave of excitement is bubbling for Canadians as they chase greatness to discover their greatest trip ever.

VISITATION & SPENDING FORECAST (INDEXED TO 2019 LEVELS) 99 99

103 104

106 107

108 109

2024

2025

2026

79 79

23 22

2020

2021

2022

2023

VISITATION

SPENDING SOURCES: TOURISM ECONOMICS, VISIT CALIFORNIA

NEWP ORT BE ACH A ND CO.CO M

CHINA MARKET PROFILE

Though consumer confidence is growing in China, the pandemic has introduced a predictable pattern of spikes and dips for tourism: desire for travel, impeded by sporadic COVID-19 outbreaks. Demand for domestic travel remained weak in Q4, though momentum appeared to begin stabilizing in December 2021. Nominal infrastructure investment returned to YOY growth as project approvals and financing increased, while corporate investment growth picked up further. This partly offset the weakness in consumption and real estate investment, which will continue to affect economic activity this year as Chinese authorities maintain a zero-COVID-19 approach. Meaningful and front-loaded policy support are expected to shore up growth, but the risks to forecasts are skewed to the downside.

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Various factors affect Chinese consumers’ willingness to travel internationally. They want to see close to zero COVID-19 cases in a destination country, with 86 percent rating this as a top-three factor. As the world adjusts to endemic COVID-19 with outbreaks of new variants, this scenario may be unlikely in the near future. The second most important factor among 84 percent of Chinese travelers is the removal of quarantine in China upon return. As of December 2021, 7 percent of airlift from China to California has recovered. As international opening for tourism continues to be delayed in the absence of any policy announcements, outbound leisure travel from China will likely be slow to return. Despite uncertainties, opportunities are emerging with recent trends. Unique experiences, offerings and services that make a trip memorable or more convenient are driving a disproportional demand for premium and budget hotels among Chinese travelers, according to a McKinsey survey. As consumer confidence grows, Chinese travel spending may also slowly rebound, forecasted to recover to 36 percent in 2022, 72 percent in 2023 and 102 percent in 2024.

VISITATION & SPENDING FORECAST (INDEXED TO 2019 LEVELS) 97

102

102 107

108 113

2025

2026

69 72

35 36 9

2020

2021

2022

2023

VISITATION

2024

SPENDING SOURCES: TOURISM ECONOMICS, VISIT CALIFORNIA

NEWP ORT BE ACH A ND CO.CO M

MIDDLE EAST MARKET PROFILE

With high in-market spending and an expectancy of a luxurious lifestyle vacation, the Middle East is a key international opportunity market for Newport Beach & Company. Primary markets within the Middle East include the United Arab Emirates (UAE), Saudi Arabia and Qatar, which are all members of the Gulf Cooperation Council (GCC). The GCC, a unified economic agreement between member countries, establishes a customs union, common market and common currency. They have some of the fastest-growing economies in the world, despite COVID-19 near-term headwinds, mostly due to a boom in oil and natural gas revenues. A strong growth momentum in the UAE through 2022 is anticipated as the delayed Expo 2020 Dubai boosts the recovery. Non-oil GDP growth of is forecasted at 3.8 percent in 2022 and 2.5 percent in 2023. Expansionary government policy is expected to continue to provide impetus to activity and the recent reform agenda should also bear fruit.

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In Saudi Arabia, it is forecasted that the non-oil sector will see a GDP growth of 2.5 percent in 2023, with overall GDP growth at 4.6 percent. The government is committed to fiscal sustainability with planned improvements on spending efficiencies and improved banking conditions. Economic recovery for Qatar is expected in 2022, with a forecasted GDP growth of 3.6 percent in 2022 and 3.4 percent in 2023 to 2024. Recovery will be supported by higher spending, ongoing outlays ahead of the 2022 FIFA World Cup, and rising gas production. The outlook for visitation from the Middle East is promising: Travel spending is forecasted to recover to 72 percent in 2022, 85 percent in 2023 and 90 percent in 2024. As of December 2021, 119 percent of airlift from Middle East to California has recovered.

VISITATION & SPENDING FORECAST (INDEXED TO 2019 LEVELS) 94 94

69 72 54

82 85

28 29

2020

2021

2022

2023

VISITATION

2024

2025

2026

SPENDING SOURCES: TOURISM ECONOMICS, VISIT CALIFORNIA

NEWP ORT BE ACH A ND CO.CO M

UNITED KINGDOM MARKET PROFILE

As one of Newport Beach’s most longstanding markets, the United Kingdom continues to be an important opportunity for international visitors. The near-term growth forecast has been adjusted due to recent surges in COVID-19 cases in the United Kingdom, causing greater consumer caution and forcing large numbers of people to isolate. However, as after previous waves, the subsequent rebound should be strong. GDP growth of 4.5 percent is expected in 2022, down from 4.9 percent in January 2022. The forecast for 2023 has been nudged down to 2.7 percent from 2.8 percent.

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Monthly GDP data suggests the economy enjoyed stronger momentum in late fall 2021, with social consumption sectors performing particularly well. Furthermore, the Office for National Statistics (ONS) has made large favorable revisions to the historical data for the pandemic period, which means that the output measure of GDP is now reported to have passed its pre-pandemic level in November 2021. International travel sentiment in the United Kingdom is slightly higher than the global average, with 21 percent of persons 16 or older considering travel to U.S. anytime versus 20 percent of the global average. A Kantar study found that two in three people in the United Kingdom are planning to travel, with 10 percent of those planning travel to North America.

VISITATION & SPENDING FORECAST (INDEXED TO 2019 LEVELS) 94 95

102 104

104 106

106 108

2024

2025

2026

60 61

2020

2021

2022

2023

VISITATION

SPENDING SOURCES: TOURISM ECONOMICS, VISIT CALIFORNIA

NEWP ORT BE ACH A ND CO.CO M

MEETING PLANNER RESEARCH

The Group/Meetings segment has always been an integral part of hotel demand in Newport Beach representing almost a third of all rooms sold between 2014 and 2019. Group demand became almost non-existent in April 2020 following the outbreak COVID-19, travel restrictions and public health measures aimed at containing the pandemic.

After an 80 percent decline in 2020, the group segment demand more than doubled in 2021 to 81,000 room nights, but remained well below its 2019 benchmark of 251500. In terms of revenue, groups have represented a lower share than leisure. The group segment ADR declined 1 percent last year while transient ADR increased more than 17 percent. Room revenue will remain below the 2019 benchmark this year, but it is expected to see more than $84M in room revenue by the end of 2024.

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NEWPORT BEACH GROUP SHARE OF MARKET YEAR

DEMAND

ADR PREM/DISC

REVENUE

2014

38.7%

12.3%

43.5%

2015

38.1%

12.1%

42.7%

2016

28.3%

-10.6%

25.3%

2017

28.5%

-11.5%

25.2%

2018

27.5%

-13.6%

24.6%

2019 2020

27.2% 9.7%

-13.7% -20.8%

23.5% 7.7%

2021

14.0%

-33.4%

9.4%

2022F

23.0%

-25.0%

17.2%

2023F

24.7%

-18.9%

20.0%

2024F

27.6%

-19.0%

22.3%

NEWPORT BEACH GROUP OUTLOOK YEAR

DEMAND

ADR

REVENUE

2014

256,464

$198

$50,886,166

2015

260,775

$209

$54,378,652

2016

251,374

$217

$54,445,098

2017

247,302

$223

$55,111,524

2018

245,941

$228

$56,082,142

2019

251,483

$224

$56,395,829

2020

40,162

$219

$8,797,931

2021

80,770

$217

$17,524,473

2022F

193,562

$260

$50,310,530

2023F

236,521

$291

$68,917,310

2024F

279,765

$302

$84,372,494

SOURCE: TOURISM ECONOMICS F = FORECAST

NEWP ORT BE ACH A ND CO.CO M

MEETING PLANNER RESEARCH

SOUTHWEST (AZ/NM/TX), 3% SOUTHEAST, 3%

WEST, 5%

PACIFIC NORTHWEST, 2%

CALIFORNIA, 29%

NORTHEAST, 18%

DC/VA/MD, 6%

EAST, 4% MIDWEST, 29%

INTERNATIONAL, 1%

SOURCE: SIMPLEVIEW

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250,000

250%

200,000

200%

150,000

150%

279,765

236,521

193,562

80,770

251,483

245,941

247,302

100%

50%

20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22 F 20 23 F 20 24 F

251,374

50,000

260,775

256,464

100,000

ANNUAL GROWTH RATE

300%

40,162

300,000

Y/Y GROWTH RATE

DEMAND

219

217

260

291

302

20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22 F 20 23 F 20 24 F

224

20%

$50

228

40%

$100

223

60%

$150

217

80%

$200

209

100%

$250

198

120%

$300

ANNUAL GROWTH RATE

AVERAGE HOTEL GROUP RATE ANNUAL PERFORMANCE

AVERAGE HOTEL RATE

ROOM DEMAND

ANNUAL GROUP HOTEL ROOM DEMAND

ADR

Y/Y GROWTH RATE

SOURCE: TOURISM ECONOMICS F = FORECAST

NEWP ORT BE ACH A ND CO.CO M

BUSINESS-PLANS 98

VISIT NEWPORT BEACH INC. - LEISURE MARKETING

108 VISIT NEWPORT BEACH INC. - GROUP SALES 112

DINE NEWPORT BEACH

116

ENTERPRISE NEWPORT BEACH

120 CELEBRATE NEWPORT BEACH 122 VIDEO NEWPORT BEACH

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RENA RESILISSANCE. REINV IENCE. IGORA TE.

RENAISSAN

NEWP ORT BE ACH A ND CO.CO M

VISIT NEWPORT BEACH, INC. LEISURE MARKETING TOURISM-OCCUPANCY TAX (TOT) FUNDING

Visit Newport Beach, Inc. Leisure Marketing (TOT) shares the incredible Newport Beach brand story with the world through the visitors’ consideration, research, planning and purchase process. From inspiring visitors to take a trip to Newport Beach to creating a place to share memories, Visit Newport Beach, Inc. engages with the visitor at all points in the journey. Leisure Marketing is funded by a portion of Transient-Occupancy Tax (TOT), the third-largest source of revenue for the city of Newport Beach, which is paid by visitors staying in hotels and short-term vacation rentals. The Leisure Marketing Team is focused in two functional areas of specialty: •Destination Brand Development & Storytelling •Destination Marketing Strategy & Business Intelligence.

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DESTINATION BRAND DEVELOPMENT & STORYTELLING Visit Newport Beach, Inc.’s media-relations efforts hinge on strong, ongoing relationships with targeted media, bloggers and social influencers. Nurturing current relationships, growing our owned media database and increasing media visits to the area are top priorities. Sharing the Newport Beach brand story through respected media outlets not only gives the destination credibility, but also allows the audiences to discover the destination in an emotive manner.

TARGET MEDIA CHANNELS I.

Domestic Consumer & Travel Trade • Media Relations: • Chart consumer PR plan leveraging destination verticals to pique media interest • Develop compelling story angles centered around the Newport Beach lifestyle and its brand-defining events • Proactive pitching to local, regional and national media to secure stories • Facilitate in-bound media requests • Create custom itineraries for visiting media • Plan familiarization (FAM) tours around aficionado angles • Develop new, leading-edge online newsroom on company-managed website to promote all business units

II.

International Consumer & Travel Trade Media Relations: • Search for a global public relations agency who has experience, offices and boots on the ground in the three target global markets as well as domestic (NYC, LA). • Visit Newport Beach will utilize a single global agency and, in turn, re-opens Newport Beach offices and market representation in Canada, Middle East and United Kingdom. • Anticipate and create partnerships for each market which has varying dependence upon intermediary travel agencies to book travel. • Develop stories that resonate with these international markets. • Develop custom itineraries for international visiting media and plan familiarization (FAM) trips for both small and large groups.

NEWP ORT BE ACH A ND CO.CO M

NATIONAL, REGIONAL, AND LOCAL BUSINESS-TO-BUSINESS MEDIA RELATIONS: • Drive Newport Beach & Company, Visit Newport Beach, Inc., and the Newport Beach/ Orange County tourism/meetings industry news to local and regional media • Develop communications plan to promote Newport Beach & Company President & CEO, Gary Sherwin • Develop a crisis communications plan for the company and destination

SEATTLE

PORTLAND

NEW YORK CHICAGO SAN FRANCISCO

PALM SPRINGS DENVER

LOS ANGELES

DALLAS PHOENIX

SAN DIEGO INLAND EMPIRE

LAS VEGAS

HOUSTON

AUSTIN

BUSINESS–TO–CONSUMER (B2C): CONSUMER & TRAVEL TRADE MEDIA

100

TIER 1 MARKETS (DRIVE-MARKETS)

TIER 2 MARKETS (FLY-MARKETS)

OPPORTUNITY MARKETS (FLY-MARKETS)

Los Angeles Greater Orange County Inland Empire Palm Springs San Diego Phoenix

Las Vegas San Francisco Bay Area Dallas Houston Austin Denver

Chicago New York

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Seattle Portland Canada United Kingdom China Middle East

CONTENT DEVELOPMENT Brand Identity, Positioning & Management Serving as an in-house creative services agency, Visit Newport Beach, Inc.’s brand management team brings tremendous graphic design, art direction, photography, videography and creative direction to Visit Newport Beach, Inc. and all its business units. This team helps drive the new brand advertising campaign creative and serves as the central source for brand voice, brand look and brand identity for Visit Newport Beach, Inc. and all its business units. Visit Newport Beach, Inc.’s destination marketing strategy team develops integrated multi-channel advertising and promotional media plans and buys in key target markets that are on-brand and integrated with the other marketing disciplines to: • Increase year-round leisure travel from day-trippers and first-time visitors • Extend visitors’ length of stay • Encourage repeat visitation ADVERTISING CREATIVE DEVELOPMENT In the fiscal year prior to COVID-19, Visit Newport Beach, Inc. developed and launched a new brand identity system. A new brand creative is in development for launch in FY2023 incorporating the brand identity system. The creative is being produced by an outside agency using prior research, and a new library of assets was deployed across advertising channels. The creative and brand positioning in the new campaign features the headline, “YOU’VE ARRIVED.” The campaign will play upon the duality of the headline: physically arriving for vacation in Newport Beach and metaphorically arriving for an aspirational vacation. COLLATERAL Visit Newport Beach produces annual collateral and sales promotion materials to assist the visitor while they are planning their trip and to guide their journey while in the destination. Visit Newport Beach’s collateral features the Newport Beach Official Visitor Map & Neighborhood Guide. The Newport Beach Official Visitor Map & Neighborhood Guide is an in-market guide to exploring the city’s unique neighborhoods with detailed maps showcasing dining, shopping and places to explore in Newport Beach. More than 100,000 copies are printed annually and distributed throughout hotels, resorts, Fashion Island and the Visit Newport Beach, Inc. Concierge Center.

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VIDEO Visit Newport Beach understands the importance of video in inspiring visitors on both social media and broadcast/OTT platforms. Visit Newport Beach brings the destination to life through screens year-round with a robust production plan utilizing best practices for all platforms. It’s safe to say video is one of the most valued components of marketing today. Newport Beach & Company has stayed ahead of the curve in recognizing the value of video production and has championed video investment and filmmaking. The team will also prepare bespoke video content for social media, campaign launches, announcements, live event coverage and more to further provide more experience for its following. Last, the team will be bringing in creatives, creators, ambassadors and influencers to craft more content and well-round its video social strategy for maximum engagement and brand awareness. SOCIAL MEDIA Visit Newport Beach invests in its social media programming, leveraging best-in-class owned and contributed content to inspire and convert consumers. Newport Beach & Company recognizes social platforms as vital in inspiring potential travelers, for travel research and as a resource for in-market guests. This fiscal year, it’s the organization’s goal to “turn up the volume” on our social content to “break through” the clutter, build a community and be a leader in the industry with this three-prong approach: Aesthetics and Content Creation: Bringing the luxury lifestyle of Newport Beach to life is a top priority for the social team at Newport Beach & Company. The team is investing in curating a gorgeous aspirational feed to lure in visitors by showcasing all destination differentiators such as scenery, neighborhoods, recreation, lifestyle, shopping, culinary and hotels and resorts. A curated image and video selection for in-house work and user generated content will be implemented to ensure a consistent look and feel. Social video creation is also of the utmost priority moving into the next business cycle. Evergreen short bite videos will be launched several times per week to educate and inspire visitation and showcase local businesses. The team will also leverage what’s trending in-app from audio and editing applications to savvy community engagement and more, Newport Beach & Company will keep its finger on the pulse to stay fresh and further build its community. In addition to in-house content creation, budget will be allocated for content creators and creative freelancers to further maximize content deliverables. Building a Community and Community Management: Building a community builds loyalty, enhances following and boosts engagement. The social team will implement community building and community management protocols to engage with following, partner accounts, other relevant accounts and brands.

102

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New Platforms: Moving into FY2023, the team is proud to enter a new platform, TikTok and will continue to invest in its success. The team will also focus on monitoring up-and-coming social media channels, while maximizing the offerings of top social platforms to better coincide with all advertising and marketing efforts to reach the visitor audience. BLOG STRATEGY The Visit Newport Beach blog offers fresh and trending content to consumers each week. This original content shares what’s new in Newport Beach: information on upcoming events, local profiles and more. All blogs are written by a dynamic group of guest bloggers and in-house marketing team members who each bring a unique perspective to the destination. The Visit Newport Beach blog keeps the website fresh with new content based on travel trends or consumer insights. E-COMMUNICATIONS Visit Newport Beach keeps visitors, partners, meeting planners and local residents informed through a robust and comprehensive e-communications program. This fiscal year, the marketing team will be evaluating its current newsletter offerings for ways to improve, engage and grow lists. The team will explore ways to improve content and showcase multi-media assets through e-communications. Overall, the goal is to build community, present inspirational and informational content and keep consumers and partners informed on the latest destination and organization happenings. • CONSUMER E-NEWSLETTER: Distributed to locals and visitors, the consumer e-newsletter provides information about the latest Newport Beach events and news. The e-newsletter, in collaboration with the Visit Newport Beach blog, is distributed with original consumer-focused content. • INDUSTRY E-NEWSLETTER: The Tourism Matters newsletter showcases trends in the destination, economy and local markets, while providing monthly updates about Newport Beach & Company to partners and stakeholders. The public relations team will be amping up corporate communications efforts within this newsletter in the coming business cycle.

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DESTINATION MARKETING STRATEGY & BUSINESS INTELLIGENCE The Destination Marketing Strategy & Business Intelligence Team analyzes customer and campaign performance, forecasts, visitor profiles and in-depth, ongoing analysis and reporting of all performance metrics, standards, and benchmarks. That same team then matches that customer with the most opportune media and channels each specific consumer prefers or uses. That pairing creates highly targeted campaigns that reach the right customer at the right time. They then work with the Brand Development team to ensure the messaging of each creative piece is paired to the right customer who receives it at the right time via the media channel most likely to generate the greatest return on investment to Newport Beach. As Visit Newport Beach begins to revive its international sales and marketing efforts, the Marketing Strategy team also will lead the organization’s efforts to reach the travel trade, tour operator, wholesaler, and travel agent. This team also manages project workflow, budgeting, and day-to-day project management for all initiatives. The team deploys the message to potential consumers, manages visitor resources, and tracks visitor patterns and behaviors. The primary areas of Destination Marketing Strategy & Business Intelligence Team include the following functional areas of marketing: advertising, research, business intelligence, international marketing (consumer and trade), industry relations, strategic partnerships, visitor services, hospitality training and all forms of digital marketing. ADVERTISING (PAID CHANNEL) Visit Newport Beach, Inc.’s Destination Marketing Strategy Team develops integrated advertising and promotional media plans and media buys in key target markets that are placed in digital and terrestrial media channels and programming that are on-brand and are integrated with the other marketing disciplines to: • Increase year-round leisure travel from day-trippers and first-time visitors • Extend visitors’ length of stay • Encourage repeat visitation As Visit Newport Beach emerged from the first year following the pandemic, the Marketing team has taken a more forceful yet highly targeted advertising media buys that span need, shoulder and peak periods year-round. Newport Beach is facing an onslaught of competitive advertising. To break through the clutter, tell our destination story compellingly, and increase visitation and visitor spending, Visit Newport Beach recommended the largest media buy in its history, with sustained support for targeted marketing at a level not seen before. With a traveler planning window that has shrunk from 30 days to mere days, Visit Newport Beach’s campaigns will run year-round with seasonal flights that change imagery, copy points messaging and media planning to ensure that Newport Beach is kept top of mind.

104

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WEBSITE One of Visit Newport Beach’s most valuable resources is VisitNewportBeach.com. With over a million visitors annually, it provides the immediate visitor assistance on Newport Beach. The flexibility to edit content benefits both the visitor by providing up-to-date experiences and stakeholders to update their information as they improve their products. VisitNewportBeach.com provides hotel, dining and activity information from stakeholders, neighborhood guides, and partner offers and events. They website is key in the dreaming, planning and booking phases of the traveler cycle. The website will be further leveraged with the introduction of micro-sites for major initiatives. For major events and initiatives, we will create customize pages with engaging content and educational resources designed to complement the initiative. VisitNewportBeach.com will contain guides for the information visitors are seeking. Interactive guides include information for weddings, pet travel and more. MOBILE MARKETING Creating an in-destination mobile experience is a key way to tap into customers. Over 70 percent of travelers always use their smartphone when they travel (https://www.thinkwithgoogle.com/consumer-insights/consumer-travel-smartphoneusage/). To capitalize on these travelers, Visit Newport Beach will develop, a mobile concierge platform built into the existing, dynamic website. The platform will pull from our existing partner database, directing visitors to Newport Beach businesses that meet their preferences and geographic location. Providing a curated experience for visitors based on their preferences, Visit Newport Beach can more create a better experience for our guests, and hopefully encourage repeat visitation. VISITOR SERVICES Visit Newport Beach, Inc. works with our community partners and visitor concierges to provide helpful information and enhance the visitors’ experience. The concierge team will provide the community with content-rich visitor information through destination maps and visitor guides. SEASONAL CAMPAIGNS: PRIMARY NEED PERIOD:

Winter Off Season (November- February)

SECONDARY NEED PERIODS: Fall Shoulder Season (September -October) Spring Shoulder Season (March-May) SPECIALIZED NEED PERIOD: Summer Peak Season—Midweek Only (June-August)

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By monitoring travel patterns, Visit Newport Beach can identify any other potential need periods and deploy resources accordingly. Our primary advertising markets are Los Angeles, San Diego, Phoenix and Las Vegas. These markets represent approximately half of all overnight visitors to Newport Beach. They are an ideal target for these seasons; all are within a short drive or flight, and the regions are already familiar with Newport Beach. There are also secondary and exploratory markets Visit Newport Beach will continue to monitor as potential media targets. They are San Francisco, Sacramento, Salt Lake City and Denver. The marketing mix comprises a strong digital focus to the media buy, allowing messaging to reach the right audience at an efficient price specifically via retargeting. Linear broadcast and Over-The-Top (OTT) streaming has become a significant part of the destination storytelling marketing strategy with specialized broadcast TV promotions for THE OSCARS® and PRIMETIME EMMYS®. Out-of-Home (OOH) advertising via static, digital and animated outdoor advertising also is a large part of our storytelling strategy to build brand awareness in key advertising markets. BUSINESS INTELLIGENCE, MARKETING RESEARCH & PLANNING Visit Newport Beach, Inc., conducts tourism destination research to support brand and marketing initiatives. Research initiatives include ad effectiveness studies, visitor profile studies and economic impact reports. Investing in research helps define the Newport Beach traveler and allows the Marketing team to best target the appropriate audiences who make the largest impact to tourism in Newport Beach.In FY2022, Visit Newport Beach, Inc. began subscription to the Zartico destination operating system, which collects and displays numerous visitor data points from geo-location via mobile phones to provide visualizations of visitor traffic, volume and spend in the destination. STRATEGIC PARTNERSHIPS Marketing & Strategic Partnerships works to promote the destination with a collaborative effort between leisure travel and local community. These partnerships will elevate our brand at Visit Newport Beach and our partners by promoting our destination through strategic integrated marketing campaigns that include paid, earned, owned and trade initiatives. TRAVEL TRADE Travel trade encompasses travel agents, tour operators, online travel agencies and airline suppliers who book individual or group tours for travelers. In the United States, most consumers book travel directly via an online booking source, while international travelers in many countries continue to rely on a third-party travel agency or tour operator to assist with travel planning and booking. Visit Newport Beach will work with travel trade agencies that specialize in behaviors of travelers and travel trade representatives in those markets.

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INTERNATIONAL MARKETING International visitors continue to be vital to Newport Beach tourism. In close collaboration with our international public relations and travel trade agencies, the Marketing team educates and promotes Newport Beach to international travel-trade companies and travel media in order to generate visitation to Newport Beach. Key international markets previously included China, Middle East, United Kingdom, and Canada. Renewed efforts include the following markets: Canada, Middle East and United Kingdom. Visit Newport Beach will not be re-entering the China market for quite a few years as the country is still recovering from COVID-19 impact. IPW 2024 In June 2024, IPW, the world’s biggest travel industry trade show, will be returning to the Los Angeles area. Thousands of the top international travel agents and travel media will be in our backyard, providing invaluable exposure to a lucrative audience. Visit Newport Beach is planning a tradeshow presence at the event. For 2023, Visit Newport Beach Media Relations Team will attend the Public Relations one-day track when San Antonio hosts 2023 IPW. Additionally, Visit Newport Beach hopes to bring key agents and media to Newport Beach before and after the trade show for a richer experience in the destination. UNITED KINGDOM TRAVEL TRADE & PUBLIC RELATIONS INITIATIVES Visit Newport Beach contracts directly in the United Kingdom with Black Diamond—a full-service public relations, travel trade and strategic partnership agency. Black Diamond represents Newport Beach as a tourism and vacation destination throughout the United Kingdom. Black Diamond represents Visit California, giving Visit Newport Beach advantages through this unique partnership with an agency that thoroughly understands both California and Newport Beach. Each February, Visit Newport Beach, Inc. conducts its largest international campaign – the Newport Beach UK Honours. The fully integrated marketing campaign includes consumer advertising, travel-trade education, media relations, radio interviews and TV appearances. The campaign concludes with a star-studded event to coincide with the British Academy of Film & Television Arts Awards (BAFTA) ceremony in London. Visit Newport Beach, Inc.’s entire United Kingdom campaign is a unique collaboration with the Newport Beach Film Festival. Through the promotion of the Newport Beach Film Festival at the same time as the BAFTAs, Visit Newport Beach capitalizes on celebrities and their star-power to promote the Newport Beach brand lifestyle to a high-income United Kingdom traveler looking for warmweather, luxurious beach destinations. CANADA As a top visitor market with easy accessibility, Visit Newport Beach will elevate its presence in Canada through strategic partnerships to help reach the media and travel trade audiences most effectively.

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VISIT NEWPORT BEACH, INC. GROUP SALES & MARKETING TOURISM BUSINESS-IMPROVEMENT DISTRICT (TBID) FUNDING

Visit Newport Beach, Inc. Group Sales actively brings valuable group meetings and conference business to the Newport Beach Tourism Business Improvement District (TBID) hotel properties and local businesses. The Newport Beach TBID consists of nine hotel properties: • Balboa Bay Resort • Hyatt Regency John Wayne Airport Newport Beach • Hyatt Regency Newport Beach • Lido House • Newport Beach Marriott Bayview • Newport Dunes Waterfront Resort & Marina • Pendry Newport Beach • Renaissance Hotel Newport Beach • VEA Newport Beach, A Marriott Resort & Spa The purpose of the TBID agreement is to directly increase group business (meetings and conferences) for partner hotels. To deliver on the TBID promise, Visit Newport Beach Group Sales fosters current client relationships and attracts 108

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new meetings and conferences to Newport Beach. Through aggressive direct selling, innovative marketing initiatives and strong hotel partnerships, the efforts of the Sales team result in increased group hotel room nights and additional revenue to TBID hotel partners. GROUP SALES The Group Sales national account directors are responsible for attracting group meetings business to TBID hotel properties. Their mission is to present their clients a dual message of promoting Newport Beach and the TBID hotel partners as a premier meetings destination as well as touting the superior customer service, sales experience and team talents of Visit Newport Beach The Group Sales team earns valuable contacts through tradeshow attendance, sales missions and other relationship-building activities. Through a rigorous tradeshow schedule, the team continues to elevate its tradeshow presence with a dynamic, industry-leading tradeshow booth experience. The Visit Newport Beach tradeshow booth in its various formats and sizes continues to welcome and wow meeting planners and even the competition.

CONFERENCE SERVICES During the meetings planning process, the team offers clients insider perspective on Newport Beach. Conference Services assists with connecting meeting-planner clients to local vendors, venues and services. The Conference Services team forges strong partnerships with local businesses to ensure the meeting planners receive premier service and the most positive experience for their attendees. Additionally, the team works with meeting planners to help build attendance for their upcoming meeting in Newport Beach. Through an online, meeting-planner toolkit, the Conference Services and Marketing teams plan to build a suite of useful online tools to help planners promote their Newport Beach meetings to build attendance and encourage pre-and-post conference leisure stays.

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MARKETING The Newport Beach & Company Marketing team is divided into two functional areas: Marketing & Strategic Partnerships and Destination Storytelling teams. Marketing services and integrated marketing campaigns to drive overarching brand awareness of Newport Beach as a premier meetings destination. It also promotes Group Sales as an elite sales team that services its meeting-planner clients with industry-leading sales and services. The Marketing & Strategic Partnerships team comprises digital marketing, marketing research, graphic design, email marketing, brand development and advertising services. The Destination Storytelling team provides public relations, social media, content marketing, video storytelling and earned media services to tell the Visit Newport Beach story to the meeting planner audience. • MARKETING & STRATEGIC PARTNERSHIPS The Marketing & Strategic Partnerships team creates the marketing vehicles or channels to distribute the destination storytelling and sales messages. They create websites, email templates, graphics, design, art direction, events, marketing research, advertising campaigns, and media buys as ways to distribute content that the Destination Storytelling team creates. The goal with those marketing channels is to create effective and efficient ways to reach targeted meeting planners with the right message at the right time and in the right format (e.g. website, tablet, mobile, email, social media, video, events, etc.). Through those channels the goal is to educate the planner about the meetings destination and the value proposition of working with the Group Sales team to drive incremental booked meetings in Newport Beach. Newport Beach & Company’s Marketing & Strategic Partnership team manages integrated, digital and traditional marketing campaigns to educate meeting planners about Newport Beach and drive incremental leads to the Group Sales team. Over the next two fiscal years, they will lead the creation of a new meetings website and new brand campaign with input and advice from the Group Sales team. They will execute co-branded events (combining leisure and meetings clients/media) events in Canada and in the United States to create larger, more cost-effective events. And, they will provide the marketing research and analytics to foster research-driven sales and marketing decisions.

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This team will use digital marketing (websites, email, social media, blogs) to connect with meeting planners, which is one of the most vital and efficient ways to reach targeted planners in key markets. This includes pre-and-post tradeshow email marketing, client event e-invitations and a new meeting planner e-newsletter. With refinement and improved messaging, group e-communications will serve as a key marketing and educational tool to reach planners and potential clients—keeping Newport Beach top-of-mind. This team will work closely with Group Sales to ensure these communications reflect the appropriate audience and tradeshow in a timely, most effective manner. • DESTINATION STORYTELLING The Destination Storytelling team provides public relations, social media, content marketing, video storytelling and earned media services to tell the Visit Newport Beach story to the meeting planner audience. This team crafts the overarching narrative and brand story about the destination and the value of working with Group Sales through everything they create—from videos to television content for Newport Beach TV, from blogs and social media posts to email campaigns, and from public and media relations. This team will put a renewed focus on generating free, positive earned media about Newport Beach as a premier meetings destination in industry trade publications and regional media surrounding Newport Beach. The overarching goal of this team is to keep Newport Beach and the sales team top-of-mind for media or influencers writing about conferences and meetings locations. Through social media engagement and new, original content development, this team will keep planners informed on the latest about the destination, its premier sales team and industry trends. LinkedIn and blogs will continue to be the area of focus for the destination storytelling with an added emphasis to provide individualized content for each national account director to send through their personal social media connections to form lasting bonds with clients. The strong, in-house video production team elevates the destination and sales storytelling capabilities and transports planners and potential clients to Newport Beach via virtual or visually stunning video experiences. Sizzle reels shown at conferences, stunning drone aerial footage and 360-degree tours of hotel meeting space create a more vivid picture of the destination. Video in all of its formats will continue to be an essential tool in the coming fiscal years. NEWP ORT BE ACH A ND CO.CO M

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DINE NEWPORT BEACH

Since 2013, Newport Beach & Company and the Newport Beach Restaurant Association (NBRA) have partnered to create the culinary consumer-facing entity: Dine Newport Beach. Dine Newport Beach’s purpose is to brand, promote and enhance the economic vitality of the culinary community, all of which have been successful in moving the needle to bring business through the doors of Newport Beach dining destinations. In June 2021, the Newport Beach city council voted to dissolve the Newport Beach Restaurant Association, which consequently demobilized Dine Newport Beach.

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Based on feedback from the Newport Beach culinary community, there is a resounding desire to reconstruct a culinary collective “2.0” as individual dining establishments are “better together,” accessing greater marketing for tangible benefits that positively ripple through the entire community. This fiscal year, Newport Beach & Company with lead a community task force and begin exploring a re-imagined Dine Newport Beach “2.0” model to serve the dine community. Here are the priorities for the culinary initiatives:

FORM EXPLORATORY CULINARY TASK FORCE: Newport Beach & Company has listened to the local culinary community and heard the desire to bring back an umbrella organization for dining destinations. Newport Beach & Company will first assemble key culinary stakeholders to provide input, point-of-views and ideas for a re-imagined network of dining destinations. This group of strategic advisors will have the opportunity to chart a new culinary course for the evolution of Dine Newport Beach with a completely refreshed strategy and blue print.

RE-IGNITE APPETITE FOR NEWPORT BEACH’S CULINARY COMMUNITY: As the longest running restaurant association in the U.S., Newport Beach Restaurant Association/Dine Newport Beach made significant strides breaking through to targeted culinary aficionados in the Golden State. Year-round high-performing marketing coupled with the annual Newport Beach Restaurant Week created a prominence and a draw to visit Newport Beach for its culinary destinations on their own right.

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Newport Beach & Company by way of Visit Newport Beach will continue placing priority on the culinary audience and serve up leading digital culinary content year-round. Through a highly-targeted mix of video production, social videos and photos, culinary influencers, landing pages and advertising, Newport Beach & Company will invest in tactics to place culinary front-and-center as a key tourism driver for the destination and local businesses.

BRING BACK COMMUNITY EVENTS: A much-anticipated return for diners and restauranteurs, Newport Beach & Company will explore bringing back Newport Beach Restaurant Week, an economic generator for the culinary community during need periods. In addition, Newport Beach & Company will consult and/or facilitate on creative culinary events and promotions for neighborhood groups and restaurant segments to drive revenue.

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Note: Newport Beach Restaurant Week and Dine Newport Beach creative shown above represent examples of Newport Beach & Company’s previous work on behalf of Newport Beach Restaurant Association. New culinary marketing and creative will be developed to reflect the new Dine Newport Beach 2.0 vision, mission and goals. The examples listed above are of past work only and are not reflective of future creative, advertising or digital marketing.

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ENTERPRISE NEWPORT BEACH

In our pre-COVID-19 world, local merchant associations partnered with Newport Beach & Company for brand development, omni-channel marketing, promotions and strategic events to activate visitation that generated positive economic impact. With the loss of merchant association funding through the City of Newport Beach, Newport Beach & Company has an opportunity to re-imagine this business unit to take it from the ground level to big picture.

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Newport Beach is known as a collection of 10 distant villages, each with their own culture, charm, history and flavor to explore and experience. This fiscal year, Newport Beach & Company will implement a greater overarching strategy and investment for Newport Beach neighborhoods that will drive tourism to all corners of the destination to positively impact local businesses. Newport Beach & Company will provide travelers with a comprehensive navigational overview of the destination and complete 360° refreshed neighborhood features with microsites, content and storytelling that are both informative and inspirational.

NEIGHBORHOOD ADVISORY TASK FORCE: The re-imagination of this business unit begins with forming a first-ever destination-wide neighborhood advisory task force, bringing together one representative from each of the ten neighborhoods. This approach lends itself to a greater ability and mobility to craft an overarching strategy for the neighborhoods vs a tactic-driven model. The task force’s mission will immerse the Newport Beach brand across all neighborhoods, leverage the distinct individuality of each neighborhood, craft compelling marketing by leveraging unique stories and propel activations to bring customers through the doors of small businesses.

TECHNOLOGY-DRIVEN WEB CONTENT: This fiscal year, Visit Newport Beach’s website is slated for a re-design and a key component is bringing Newport Beach neighborhoods to life via web content. The team will take a visual-first approach to educating visitors on Newport Beach unique landscape, utilizing cutting-edge interactive maps and parallax technology to showcase topographical information in a visual way. The team will create bespoke microsites for

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each of the ten neighborhoods, with multi-media storytelling across all the tourism small business sectors to generate demand. The team plans to showcase sweeping high-quality and clean hero imagery on every page with bold typography moments and even experiment with sound components. The team will also explore integrating geo-location services with directions to assist visitors while in the destination.

NEIGHBORHOOD STORYTELLING: There is an age old saying “show them, don’t tell them” – this will be marketing’s leading tactic to immerse audiences into each distinctive neighborhood. Across all distribution platforms including web, social media and media relations, the team will craft authentic stories showcasing the best in each neighborhood. Short multimedia content series will serve to educate and inspire visitors on what makes each neighborhood special. Think spotlights on dine/shop/play as well as getting to know the locals, makers, creatives and business owners. The goal of the storytelling segment will to bring the neighborhoods to life leveraging the best in modern film for social media and all other platforms to bring tourism.

COMMUNITY CONSULTING: Newport Beach & Company has emerged as a community-marketing leader serving as a branding, marketing and placemaking consultant for individual businesses and groups. This service will continue into this fiscal year, creating opportunities for professional marketing services for the small business community.

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COMMUNITY EVENTS: Visit Newport Beach teams regularly promote neighborhood events and promotions through its website, social media and media relations channels.

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CELEBRATE NEWPORT BEACH

The Celebrate Newport Beach business unit enables Newport Beach & Company to integrate the Newport Beach brand into in-person events to create cohesive touchpoints across the entire visitor and community experience. Annual marquee signature events are not only an economic driver for the community, but destination differentiators that standout against our regional comp set that give world-class experiences. At the end of fiscal year 2022, large-scale in-person events have returned. From city-wide conventions in Anaheim to Coachella in the desert, there is a public desire to attend events at scale. The Celebrate Newport Beach business unit is ready to meet this moment in the upcoming fiscal year and beyond by crafting marketing, sponsorship and event support. The team will have a focused attention on elevating brand-centric events and leveraging those events for the benefit of the entire Newport Beach community. Celebrate Newport Beach also focuses on establishing strategic partnerships for Newport Beach that will provide sponsorship revenue to some signature events and key marketing initiatives. Current Celebrate Newport Beach-supported events include: • Newport Beach Film Festival • Newport Beach Christmas Boat Parade • NBFF U.K. Honours/Variety 10 Brits to Watch • Hoag Classic • Additional brand-defining events Media support ranges from guidance on marketing tactics to making strategic media placements. Level of support is at the discretion of the Newport Beach & Company Marketing Team. All Newport Beach events have the opportunity to promote on appropriate Newport Beach & Company-owned channels. NEWPORT BEACH CHRISTMAS BOAT PARADE As one of the community’s longest and most-renowned events, the Newport Beach Christmas Boat Parade is the city’s most cherished tradition. Visitors and residents celebrate the cavalcade of holiday-decorated and lit yachts, electric boats and kayaks every December in Newport Harbor.

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Going on eight years now, Newport Beach & Company and the Newport Beach Chamber of Commerce, the event organizer, formed a strategic partnership, where Newport Beach & Company oversees all marketing, public relations, sponsorship efforts and consumer enhancements. The team invests significantly in the opening night media event to garner tremendous news coverage, which supports attendance numbers later in the parade week/weekend. DESTINATION MARKET DELIVERY & BUSINESS INTELLIGENCE Newport Beach & Company creates an integrated-marketing campaign to raise awareness and attendance for the Christmas Boat Parade. Newport Beach & Company activates the media buy making strategic advertising placements to both inform locals and entice visitors to attend the event and stay overnight in Newport Beach. Campaigns have included digital, radio, television and print placements. New in 2021, Newport Beach & Company partnered with Zartico—a destination organization software tool. This new research tool enabled us to visually see and distinguish between locals, in-state and out-of-state visitors attending the boat parade NEWPORT using cell phone data. It showed where they went, and how much they spent. And how long they stayed. DESTINATION BRAND DEVELOPMENT & STORYTELLING Newport Beach & Company serves as the primary media resource for the Christmas Boat Parade, dovetailing on the extended holiday season. The media relations team handles press inquiries and pitches international, national, regional and local media outlets for positive news coverage about the event. Newport Beach & Company also hosts a media event on the opening night of the Christmas Boat Parade, which has gain significant traction in the last couple of years. A greater opening night experience includes a pop-up holiday market to enhance the guest experience. The event is further elevated through securing celebrity and community grand marshals make a guest appearance each night of the parade. The Newport Beach & Company Marketing team produces all ads and informational materials including the parade-viewing map. Additionally, the Christmas Boat Parade produces a program, and the Newport Beach & Company Marketing team coordinates the content and design for all marketing elements including advertising creative. The Newport Beach TV camera crew films the parade each year and airs a special program on the Newport Beach government access channel. The video team also creates consumable content for social channels and b-roll footage for media outlets. YEAR-ROUND SIGNATURE EVENT SUPPORT Newport Beach & Company supports additional brand-defining events that attract visitors and benefit the Newport Beach community. Each event calls for different levels of support and the expertise of the Newport Beach & Company marketing team reach the right audience. ADVERTISING (PAID MEDIA) Newport Beach & Company provides marketing guidance for signature events. The team will provide an advertising recommendation based on each event’s audience and secures media placements as needed. All Newport Beach events can promote on VisitNewportBeach.com. Because of the strategic structure of Newport Beach & Company, other business units can be leveraged to promote on the relevant social media channels and websites, exposing new audiences to events in the city. DESTINATION STORYTELLING The Newport Beach & Company media relations team supports signature events by pitching media to attend and generate positive media coverage as relevant. The event and Newport Beach teams collaborate to find interesting story angles to pitch to national, regional and local media. Partners can provide content that can be used on appropriate Newport Beach & Company outlets and social channels to engage with the additional Visit Newport Beach audience, both local and potential visitors. Newport Beach & Company also promotes events through social media giveaways to engage followers. NEWP ORT BE ACH A ND CO.CO M

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VIDEO NEWPORT BEACH

If content is king, video is emperor. Video has always been the domineering medium to tell stories, but over the course of the pandemic, video has owned the lion’s share of how brands reach consumers. For the past two years, consumers spent more time on their mobile devices while at home, viewing video entertainment with each other and brands. Breakthrough social platforms like TikTok exploded into the zeitgeist offering video creation tools at the fingertips of every consumer. In response, legacy social platforms rapidly developed video content capabilities to keep pace with the trends – giving anyone and everyone the ability to create and share video content.

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In fact, more video content gets uploaded in 30 days than what the major U.S. television networks have broadcast in 30 years. What’s more, 167 million TikTok videos have been watching on the internet every minute and after viewing a video ad on Instagram, 75% of all users take further action; in turn, 72% of those actually buy the product from the video. Viewers also retain 95% of a message when they watch it in a video, compared to 10% when reading it in the text. It’s safe to say video is one of the most valued components of marketing today. Newport Beach & Company has stayed ahead of the curve in recognizing the value of video production and has championed video investment and filmmaking. This fiscal year, Newport Beach & Company will continue to take its video production to the next level with its four-prong strategy:

PLATFORM-SPECIFIC VIDEO PRODUCTION: Ushering in the new era of video, Newport Beach & Company is re-imagining its video content strategy and dedicating budget toward cutting-edge video production. Video production will fall under two categories and best practices will be tailored to each: Video for TV; Video for social media. Knowing video production is not one-size fits all, Newport Beach & Company recognizes the need to adopt best practices and craft bespoke creative direction, production and post-production to maximize engagement, native on each platform. The team will be ramping up its creative external partners in developing new content to achieve these goals to be a leader in the community, tourism industry and drive visitation to Newport Beach.

SOURCES: WORDSTREAM, STATISTA, IMPACT BND, INSIVIA

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SOCIAL MEDIA VIDEO OPTIMIZATION: Newport Beach & Company will be turning the volume up on video production specially crafted for social media. Evergreen short bite videos will be launched several times per week to educate and inspire visitation and showcase local businesses. The team will also leverage what’s trending in-app from audio and editing applications to savvy community engagement and more, Newport Beach & Company will keep its finger on the pulse to stay fresh and further build its community. The team will also prepare bespoke video content for campaign launches, announcements, live event coverage and more to further provide more experience for its following. Last, the team will be bringing in creatives, creators, ambassadors and influencers to craft more content and well-round its video social strategy for maximum engagement and brand awareness.

BRAND NEW COMMERCIALS FOR BROADCAST AND OTT: In line with global brands, Newport Beach & Company has opted to strategically invest in broadcast and OTT buys with brand-new programmatic commercials going live every quarter in targeted national, fly and feeder markets. Building off the success of the 2022 Oscars® commercial, Newport Beach & Company will continue to penetrate the entertainment vertical and leverage its storied ties to Hollywood. Custom commercials will go live around marquee awards shows, domestically and internationally to maximize brand awareness and conversion.

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NBTV: Newport Beach & Company will continue to partner with the City of Newport Beach government access television channel to lead operations and programming. PSA’s and issue-driven stories are a priority for the City of Newport Beach and Newport Beach & Company will collaborate on providing solutions to communicate pertinent information to its stakeholders.

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VISIT NEWPORT BEACH

GOVERNANCE 130 EXECUTIVE COMMIT TEE & BOARD OF DIRECTORS 131

TBID BOARD OF DIRECTORS

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MARKETING COMMIT TEE

132 NEWPORT BEACH & COMPANY TEAM 134 NEWPORT BEACH & COMPANY ACCOLADES 136 INDUSTRY TERMS 140 REFERENCES

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RENA RESILISSANCE. REINV IENCE. IGORA TE.

RENAISSAN

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BRAND ARCHITECTURE Newport Beach is more than a destination; it’s a global lifestyle brand to see, and then be seen in. Newport Beach & Company’s new brand identity is designed to be an internationally recognizable label to embellish and enhance the jetsetter’s lifestyle well beyond their visit. Its aesthetic, archetype and architecture are meant for immersion into Newport Beach lifestyle through premium products, home and outdoor goods, apparel and much more. Newport Beach & Company’s label is glamorous and global but with a coastal casual style. Proud of tradition but bold in modern interpretations. Inspirational and aspirational. It’s luxury at your leisure.

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EXECUTIVE COMMIT TEE GOVERNANCE VICE CHAIRPERSON

TREASURER

SECRETARY

DEBBIE SNAVELY

GERARD WIDDER

CANDACE BISCONTE

LINDA M. BEIMFOHR

VEA Newport Beach, A Marriott Resort & Spa

The Resort at Pelican Hill

Eventis Destination Services

City Cruises Anchored by Hornblower

CHAIRPERSON

MEMBER AT LARGE

CHIEF JON LEWIS

HOMER BLUDAU

SHARON WOOD

Newport Beach Police Department

Former City Manager

City of Newport Beach Appointee

MEMBER AT LARGE

BOARD OF DIRECTORS DAVID BEEK Island Marine Fuel ANDRÉ BROSE Lido House LINDA M. BEIMFOHR City Cruises Anchored by Hornblower CANDACE BISCONTE Eventis Destination Services HOMER BLUDAU Former City Manager SCOTT CATLETT City of Newport Beach

CHARLES CHO Newport Beach Marriott Bayview AMY DEIFT City Experiences by Hornblower MARINA DUTTON Balboa Bay Resort MICHAEL GELFAND Newport Dunes Waterfront Resort & Marina ERIN HENRY Hyatt Regency Newport Beach RUSH HILL NRM Real Estate Advisors WASIM KAZI Hyatt Regency John Wayne Airport, Newport Beach

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CHIEF JON LEWIS Newport Beach Police Department

TANYA THOMAS Fashion Island

MARIO MAROVIC Lounge Group Consulting

GERARD WIDDER The Resort at Pelican Hill

TONY PETROS LSA Associates

SHARON WOOD City of Newport Beach Appointee

HENRY PYLE Chartwell Real Estate Development/Balboa Fun Zone Company, LLC. STEVE ROSANSKY Newport Beach Chamber of Commerce GREGG SCHWENK Newport Beach Film Festival DEBBIE SNAVELY VEA Newport Beach, A Marriott Resort & Spa JOE STAPLETON Spinnaker Investment Group

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OPEN Pendry Newport Beach OPEN Renaissance Newport Beach Hotel

MARKETING COMMIT TEE CHAIRPERSON BEN STINNETT VEA Newport Beach, A Marriott Resort & Spa SHELLEY CALLAHAN Hyatt Regency Newport Beach KELLY CARLSON Balboa Village Merchant Association ANGELA CORTRIGHT Spa Gregorie’s COLLEEN D’ALUISIO Balboa Fun Zone Company LLC AMY DEIFT City Experiences by Hornblower HEIDI DRINKWARD VEA Newport Beach, A Marriott Resort & Spa

NANCY GARDNER Newport Beach Conservancy

JOHN POPE City of Newport Beach

STEPHANIE HINKLEY Irvine Company Resort Properties

ANNASOPHIA SERVIN John Wayne Airport, Orange County

JAN HOLLIS Hyatt Regency John Wayne Airport, Newport Beach

MAUREEN SLOAN HelmsBriscoe

JAMES KEAVENY The Resort at Pelican Hill KAMIA KINCHLOW Balboa Bay Resort KATY LENGEL Lido House Hotel BEVERLY MORGAN Sherman Library & Gardens

FRANCINE SLOSSER Balboa Bay Resort MICHELLE ST. AMOUR Lido Marina Village KIMBERLY STEPHENSON Renaissance Newport Beach Hotel OPEN Pendry Newport Beach

DIANA PARSEL Fashion Island

TOURISM BUSINESS IMPROVEMENT DISTRICT (TBID) BOARD OF DIRECTORS CHAIRPERSON DEBBIE SNAVELY VEA Newport Beach, A Marriott Resort & Spa ANDRÉ BROSE Lido House CHARLES CHO Newport Beach Marriott Bayview MARINA DUTTON Balboa Bay Resort

ERIN HENRY Hyatt Regency Newport Beach WASIM KAZI Hyatt Regency John Wayne Airport, Newport Beach OPEN Pendry Newport Beach OPEN Renaissance Newport Beach Hotel

MICHAEL GELFAND Newport Dunes Waterfront Resort & Marina

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NEWPORT BEACH & COMPANY EXECUTIVE TEAM GARY C. SHERWIN,

MICHELLE DONAHUE,

DOUG McCLAIN,

LILY PEARSON

APR, CDME PRESIDENT & CEO

CDME SENIOR VICE PRESIDENT OF SALES

CDME SENIOR VICE PRESIDENT & CHIEF MARKETING OFFICER

VICE PRESIDENT OF FINANCE

ADMINISTRATION ROXANNE BRITTAIN

KAYCEE ROBISON

ELIZABETH GARCIA

EXECUTIVE ASSISTANT TO THE CEO

FINANCE COORDINATOR

ADMINISTRATIVE ASSISTANT

N E W P O R T B E A C H & C O M PA N Y

V I S I T N EW P O RT B E AC H , I N C.

MARKETING

GROUP SALES

LENIS CHOI

JENNIFER BRANNON

SENIOR DIRECTOR OF MARKETING/ BUSINESS INTELLIGENCE

DESTINATION SERVICES MANAGER

BRIANNA GRIMALDI DIRECTOR OF DIGITAL MARKETING

HUNTER HOWELL MARKETING COORDINATOR

AMANDA KLIEM, CDME, HMCC, CITP DIRECTOR OF SALES

JACKIE INFANTE

JANE LOENHORST

CREATIVE DIRECTOR

GROUP MARKETING & COMMUNICATIONS DIRECTOR

ERIN ROSE SENIOR DIRECTOR OF COMMUNICATIONS

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MICHELLE DEVINE, CMM, HMCC NATIONAL ACCOUNT DIRECTOR

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ENRIQUE PAOLO NATIONAL ACCOUNT DIRECTOR

DOMINIC DIMARE

NEWPORT BEACH TV

NEWPORT BEACH TV PRODUCTION ASSISTANT

LUIS HERRERA NEWPORT BEACH TV CAMERA CREW

ED OLEN NEWPORT BEACH TV INDEPENDENT CONTRACTOR

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ACCOLADES NEWPORT BEACH & COMPANY AND VISIT NEWPORT BEACH, INC.

2017

2015

GOLD ADRIAN AWARD NEWPORT BEACH FILM FEST U.K. HONOURS

INTERNATIONAL 5-STAR DIAMOND AWARD AMERICAN ACADEMY OF HOSPITALITY SCIENCES

TOP 30 BEST CITIES IN AMERICA CONDÉ NAST TRAVELER

DESTINATION PARTNER OF THE YEAR IN A SECONDARY MARKET HELMSBRISCOE

HAPPIEST SEASIDE TOWNS (CORONA DEL MAR)

CVB OF THE YEAR – SECONDARY MARKET

COASTAL LIVING

CONFERENCEDIRECT

2016

MERIT WINNERHOW IN-HOUSE DESIGN AWARDS

PLATINUM - NONPROFIT WEBSITE ADDY AWARDS

HOW

SILVER - BRANDSCAPE VIDEO ADDY AWARDS

2018

BRONZE - 2015 ANNUAL REPORT

#2 AND #6 - BEST CALIFORNIA BEACH

ADDY AWARDS

TOP 10 BEST WEST COAST BEACHES (LITTLE CORONA DEL MAR AND CRYSTAL COVE) USA TODAY

TOP 10 BEST BOARDWALKS USA TODAY

TOP 25 BEACHES IN THE U.S. (NEWPORT BEACH AND CRYSTAL COVE) TRIPADVISOR

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USA TODAY’S 10 BEST

#1 - 2018 BEST PLACES TO VISIT LIVABILITY.COM

2019 BEST CVB/DMO IN WEST BY SMART MEETINGS SMART STARS 2019

SILVER - TELLY AWARD NEWPORT BEACH A SUMMER TRADITION ONLINE COMMERCIALS/ TRAVEL TOURISM THE TELLY AWARDS

2020 BEST CVB/DMO BY SMART MEETINGS SMART STARS 2020

2021 TWO - ANVIL AWARDSNEWPORT BEACH RESTAURANT MONTH PRSA NATIONAL ANVIL AWARDS

SILVER - TELLY AWARD IN SOCIAL VIDEO STAY & PLAY: TRAVEL & TOURISM THE TELLY AWARDS

SILVER - TELLY AWARD NEWPORT BEACH RESTAURANT MONTH: EAT. DRINK. WIN. SOCIAL VIDEO THE TELLY AWARDS

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INDUSTRY TERMS A A/B TESTING | (OR SPLIT TESTING) Comparing two versions of a web page or ads to see which one performs better ACADEMY AWARDS Popularly known as the OSCARS®, most prestigious and significant awards worldwide in the entertainment industry. ADR Average daily rate for hotel accommodations

B B2B Business-to-Business B2C Business-to-Consumer BAFTA British Academy of Film and Television Arts; annual awards held in February BID Business Improvement District BOD Board of Directors BOUNCE RATE The percentage of visitors to a particular website who navigate away from the site after viewing only one page BRAND USA Destination marketing organization for the United States, which began in 2009 with the Tourism Promotion Act

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BRAND PILLARS The most influential attributes of the Visit Newport Beach brand BRAND PERSONAS Personality attributes of the Visit Newport Beach brand BRAND PROMISE Statement made to customers that identifies expectations for all interactions with Newport Beach & Company BRAND VALUE Establishing a brand that is memorable, easily recognizable to the consumer and superior in quality BUSINESS UNITS The various segments of Newport Beach & Company: Visit Newport Beach, Inc. – Leisure Marketing, Visit Newport Beach, Inc. – Group Sales, Celebrate Newport Beach, Dine Newport Beach, Enterprise Newport Beach, Film Newport Beach, and Newport Beach TV BVMA Balboa Village Merchant Association—the merchant association representing Balboa Village merchants, which is serviced through Newport Beach & Company’s economicdevelopment business unit, Enterprise Newport Beach

C CALTRAVEL California Travel Association, the hospitality and travel industry’s trade association in California reflecting the unified voice for California’s travel and tourism industry CDME Certified Destination Management Executive, DMO industry’s highest educational achievement CDM Corona del Mar, neighborhood in Newport Beach

CO-OP Co-operative programs and opportunities that involve multiple groups or partners working together on a common program, campaign or event CONFERENCEDIRECT Provider of global meetingplanning solutions; third-party meeting planners CRM Customer-relationship management system—database of customer data CTR Clickthrough rate is the number of clicks that your ad receives divided by the number of times your ad is shown CVB Convention & Visitors Bureau, now known as Destination Marketing Organization (DMO) CVENT Event-management technology company, enables increased group business demand through targeted advertising and online meetings requests for proposals (RFPs)

D DESTINATION ANALYSTS, INC. Tourism market research contractor DESTINATION INTERNATIONAL Destination International, global trade association for official destination marketing organizations worldwide DMO/DO Destination Marketing Organization/Destination Organized, formerly known as Convention & Visitors Bureau

E E-MAIL SEGMENTATION Separating audiences into different groups to provide content best suited to their interests EVENT IMPACT CALCULATOR Destination International tool to measure the economic impact of an event to destinations ERP Enterprise resource planning, business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back office functions related to technology, services and human resources E.U. European-Union, a political union, to which the member states of the European Economic Community are evolving

F FAM Familiarization tour trip, hosting a travel agent/tour operator, member of the media or meeting planner to increase destination knowledge and generate interest FISCAL YEAR Newport Beach & Company’s fiscal year runs July 1 to June 30 each year FICP Financial & Insurance Conference Planners FIT Frequent individual traveler

FICP Financial & Insurance Conference Planners FIT Frequent individual traveler FULFILLMENT Fulfilling by mail visitor-requested collateral pieces

G GCC Gulf Cooperation Council, political and economic alliance of six Middle Eastern countries—Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman GENERATION - BABY BOOMER A person born in the years following World War II, when there was a temporary marked increase in the birth rate GENERATION - X The generation born between 1981 - 1996, reaching adulthood around the year 2000 GENERATION - MILLENNIAL A person reaching young adulthood around the year 2000 GENERATION - Z A generation born from 1997 - 2012 GENERATION - ALPHA A generation born from 2010 - 2024 GDP Gross Domestic Product, the monetary value of all the finished goods and services produced within a country’s borders in a specific time period GUERRILLA MARKETING Innovative, unconventional technique aimed at obtaining maximum exposure

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INDUSTRY TERMS H HELMSBRISCOE Site-selection agency, consultants focused on the meeting planning process; third-party meeting planners HOUSEHOLD INCOME Measure of the combined incomes of all people sharing a particular household or place of residence HPN Hospitality Performance Network Global; third-party meeting planners

I IEG Company that offers consulting, research and valuation services related to event marketing, sports marketing, cause marketing and sponsorship IMEX America’s worldwide exhibition for incentive travel, meetings & events INTEGRATED MARKETING Utilizing both modern and traditional marketing strategies, to optimize the communication of a consistent message IPW U.S. Travel Association’s premier travel-industry marketplace

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J JWA John Wayne Airport, Orange Country- only commercial-service airport in Orange County

K KPI Key performance indicator

MOBILE RESPONSIVE An approach to web design aimed at crafting sites to provide an optimal viewing and interaction experience across a wide range of devices (from desktop computer monitors to mobile phones) MPC Monetary Policy Committee, a committee of the Bank of England, which meets for three and a half days twelve times a year to decide the official interest rate in the United Kingdom

LEAD Meeting planning request of rooms, event space or goods and services sent to qualified partners

NBCC Newport Beach Chamber of Commerce, promotes economic opportunity to enhance the social and civic environment of Newport Beach

LGBT Lesbian, Gay Bisexual & Transgender

NBTV DIGITAL MEDIA CENTER Newport Beach & Company’s in-house video production suite and television studio

M MAs Merchant Associations, examples include Balboa Island Marketing, Inc., and Balboa Village Merchants Association MICE Meetings, Incentives, Conventions & Exhibitions MINT (Destination Marketing Association International’s (DMAI) meeting-industry database

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NEED PERIODS Referencing a period of time when visitor volume is down NEWPORT BEACH NEIGHBORHOODS Balboa Island, Balboa Peninsula, Balboa Village, Cannery/Lido Marina Village, Corona del Mar (CDM), Fashion Island/Newport Center, Airport District, Mariner’s Mile/ Westcliff, Upper Newport Bay, Newport Coast/Crystal Cove

O OCBJ Orange County Business Journal OCVA Orange County Visitors Association, provides visitor advocacy, communications and brand-marketing support to Orange County partners OTA Online Travel Agency such as Expedia, Travelocity, Orbitz or Ctrip (in China) OTT Over-The-Top is media services offered directly to viewers via the Internet, bypassing cable, broadcast and satellite

P PPC Pay-per-click (online ads or promoted videos)

R REFERRAL List of qualified Newport Beach & Company partners sent to meeting planners or media outlets RFP Request for proposal RevPAR Revenue per available room, performance metric in hotel industry

SITE VISIT (also known as Site Inspection) Tour of property or meeting space to familiarize a potential client SEM Search-engine marketing—Internet marketing that helps improve visibility in search engine results SEO Search-engine optimizationformatting and writing content to perform at its highest level in online searches STR Smith Travel Research, Inc.—hotel market data & benchmarking reports utilized by Visit Newport Beach and Newport Beach hoteliers

T TARGET AUDIENCE Particular group of people, identified as the intended recipient of an advertisement or message TBID Tourism Business Improvement District—hotel-room assessment on the participating lodging businesses within city limits of Newport Beach to market Newport Beach as a meetings destination TRANSIENT Individual traveler not traveling for group/meetings business

ROI Return on investment

TRAVEL TRADE Collective term for tour operators, wholesalers, and travel agents

ROOM NIGHT Statistical unit of occupancy; one hotel room occupied for one night

TRADESHOW Event with exhibitors showcasing products or services

U U.S. TRAVEL ASSOCIATION National, non-profit organization representing all components of the travel industry that generates $2.1 trillion in economic output and supports 15 million American jobs

V VFR Visiting friends and relatives VISIT CALIFORNIA California Travel & Tourism Commission, organization with mission to develop marketing programs that keep California top-of-mind as a premier travel destination

W WEBSITE VISITS A visit is defined as a visit to a website where at least one page has been loaded.

Z ZARTICO Provider of the world’s first destination operating system. It combines art and science to create insights and intelligence which elevate the well-being of global communities

TOT Transient Occupancy Tax also known as “bed tax”

SALES MISSION Selling and showcasing Newport Beach in other markets NEWP ORT BE ACH A ND CO.CO M

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DESTINATION BUSINESS PLAN REFERENCES AND SOURCES CIC RESEARCH CITY OF NEWPORT BEACH CONVENTION INDUSTRY COUNCIL DEAN RUNYAN ASSOCIATES DESTINATION ANALYSTS, INC. DKSA FORWARD KEYS JOHN WAYNE AIRPORT, ORANGE COUNTY KANTAR GROUP NATIONAL TRAVEL & TOURISM OFFICE OFFICE FOR NATIONAL STATISTICS (ONS) OFFICE OF TRAVEL & TOURISM INDUSTRIES OXFORD ECONOMICS PKF STATE OF CALIFORNIA STR, INC. (SMITH TRAVEL RESEARCH) SUCCESSFUL MEETINGS TNS GLOBAL TOURISM ECONOMICS TRIPSAVVY US DEPARTMENT OF COMMERCE US TRAVEL ASSOCIATION VISIT CALIFORNIA WORLD TRAVEL & TOURISM COUNCIL (WTTC) YOUGOV ZARTICO

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