Industry Briefing | State of Hospitality

Atlanta Convention & Visitors Bureau Industry Briefing – State of Hospitality March 8, 2017

JASON MEANS DIRECTOR, MEMBERSHIP & CORPORATE EVENTS

ACVB

ACVB Industry Briefing Sponsors

DEPUTY DAVID STANHOPE JIMMY CARTER PRESIDENTIAL LIBRARY AND MUSEUM

ADAM NOYES PRESIDENT

PROOF OF THE PUDDING

WILLIAM PATE President & CEO Atlanta Convention & Visitors Bureau

Why is hospitality important?

Employs 250,000 metro Atlanta residents 51M visitors in 2015 $15B in spending annually

The Gasoline that Runs the Engine

What sets Atlanta apart Accessibility 80 percent of the U.S. population within a two-hour flight of the world’s busiest airport, Hartsfield-Jackson Atlanta International Airport Flexible hotel portfolio More than 94,500 hotel rooms in metro Atlanta and 11,700 rooms within a one-mile radius of GWCC Georgia World Congress Center Nation’s fourth-largest convention center conveniently located in the heart of Downtown Shopping capital of the South Legendary shopping at Lenox Square, Phipps Plaza and The Shops Buckhead Atlanta Award-winning food scene In the past five years, Atlanta chefs have garnered 60 semifinalist nominations for James Beard awards Vibrant arts and cultural community 1,700 arts and cultural institutions in the metro area

Atlanta’s hospitality industry continues to see growth

City of Atlanta has seen increases in multiple areas

2010

2016

64 percent

73 percent

• RevPAR

$82

$114

• Average daily rate

$129

$157

1 percent

6 percent

47

56

992K

1.04M

• Occupancy

• Average daily rate growth • Major citywides • Room nights

Number of Visitors to Atlanta on the Rise 60

Visitors (Millions)

50 40 30 20 10 2009

2010

2011

2012

2013

2014

2015

• 54 percent increase in visitation in the last seven years

2016 ACVB Highlights • Finished 2016 at 102 percent room night goal and 102 percent of lead goal • Atlanta.net site visits were up 21 percent and mobile site visits were up 15 percent from 2015 • Membership retention rate increased 8 percent year over year • Atlanta was recognized as a Best in the U.S. 2017 destination by Lonely Planet – the largest travel guide publisher in the world

2017 ACVB Goals

Through February, we are at 94 percent of our room night goal and 108 percent of our lead goal.

Welcoming New Conventions and Returning Business National Rifle Association Annual Convention April 28 - 30 70,000 attendees

2017 Rotary International Convention June 10 - 14 32,000 attendees

2017 National Apartment Association Conference & Exposition June 21 - 24 10,000 attendees

North American Commercial Vehicle Show Sept. 25 - 28 15,000 attendees

American Public Health Association Annual Meeting and Exposition Nov. 4 - 9 12,500 attendees

National Association for the Education of Young Children Nov. 15 - 18 7,500 attendees

ASA 2017 NACE/CARS Expo & Conference

American Society of Hematology

July 21 - 29 4,000 attendees

Dec. 9 -12 27,000 attendees

Denotes new convention to Atlanta

Positive Forecast

New Hotel Concepts

Renaissance Atlanta Airport Gateway Hotel

InterContinental Hotel at Hartsfield-Jackson Atlanta International Airport

Solis Hotel

Hard Rock Hotel

SunTrust Park Braves home opener – April 14

The Battery Atlanta

Mercedes-Benz Stadium Opening July 30

Atlanta United FC First game in Mercedes-Benz Stadium – July 30

Georgia State development of Turner Field

Beyond the stadium

And There’s More To Come More than $3 billion in new development the next four years

GWCC hotel and expansion

Centennial Olympic Park

Philips Arena

Capital of College Football

Atlanta Has Momentum China – U.S. Tourism Leadership Summit – 2017 Chick-fil-A Kickoff Games - 2017 College Football Playoff National Championship - 2018 Super Bowl LIII - 2019 NCAA Final Four - 2020 55 – 60 million visitors by 2020

Questions and Answers

Presenters TJ Jackson

Karen Bremer

Randi Green

TJ JACKSON AIRPORT MANAGER, TRAVEL INDUSTRY ENGAGEMENT

HARTSFIELD-JACKSON ATLANTA INTERNATIONAL AIRPORT

PRESENTED TO ACVB INDUSTRY BRIEFING: STATE OF HOSPITALITY

WORLD’S BUSIEST AIRPORT: OVERVIEW March 8, 2017

By TJ Jackson Travel Industry Engagement

HARTSFIELD-JACKSON

ATL TODAY • Total passengers in 2016 – 104.1 million World’s busiest airport (19th consecutive year) • 2,500+ flights per day • Combined annual operating and capital budget – +/- $1 billion • Serves 150+ U.S. destinations and 70+ international destinations in 45+ countries

HARTSFIELD-JACKSON

ECONOMIC IMPACT CATEGORY REVENUE Direct

$35 billion

Indirect

$15 billion

Induced

$14 billion

Total

$64 billion

HARTSFIELD-JACKSON

ATL’S PRIORITIES • • • • •

Safety Operational Efficiency Customer Experience Economic Generation Job Creation

HARTSFIELD-JACKSON

WHAT IS ATLNext?

• ATLNext is the Airport’s $6 billion capital plan.

• ATLNext consists of a series of projects to boost capacity. They include projects to ...

1. Modernize facilities 2. Expand cargo operations 3. Build Concourse G and expand Concourse T 4. Replace 2 parking decks 5. Build a 6th runway 6. Construct a 4-star hotel

ATLNext

MODERNIZE FACILITIES • CANOPIES: 2 canopies, totaling length of three football fields, will offer a dramatic entrance to the Domestic Terminal.

• ATRIUM: Facelift includes engineered trees and other foliage for a park-like feel.

• TRANSPORTATION MALL: Renovated ceilings will provide brighter look.

ATLNext

2 PARKING FACILITIES • Replace North and South decks with new facilities rising 4-8 levels.

• To minimize disruption and loss of parking spaces, ATL will phase in construction and create a new Park-Ride lot on Sullivan Road and add an ATL West Deck adjacent to the Georgia International Convention Center.

ATLNext

NEW RUNWAY • Build a sixth runway.

• Create two end-around taxiways.

• Replace runway pavement.

ATLNext

HOTEL COMPLEX • 4-star, 440-room InterContinental Hotel • 60,000 square feet of office space • 80,000 square feet of conference / meeting space • 13 acres of mixed-use development

HOSPITALITY

DEDICATED ROLE FOR TRAVEL INDUSTRY •

Strategic Partnerships

•

Travel Industry Portal (atl.com/travel)

•

ATL as a destination • • •

Hundreds of retail shops Award-winning restaurants World-class art and music

HOSPITALITY

ATL Experience • Bringing the experience of Atlanta to the Airport • Highlighting iconic attractions and educational institutions (“go, learn, play”) • How to participate: Visit atl.com/experience

THANK YOU!

QUESTIONS & ANSWERS

By TJ Jackson Travel Industry Engagement

Karen Bremer, CEO

The GRA serves as the voice of Georgia’s restaurants in advocacy, education, and awareness.

Georgia’s Restaurants: The Numbers 17,900 eating and drinking place locations

446,600 restaurant and foodservice jobs (10% of total workforce) 516,500 projected jobs by 2027

$19.6 billion in projected sales this year

Who works in the U.S. restaurant industry?  60% said their first paid job was in the restaurant industry.  A majority of employees said the industry provides good long-term career opportunities and affords them career advancement.  More than 80% agreed that restaurants provide an opportunity for people who want to succeed based on their hard work.  70% said they would likely continue working in the industry until they retire.  The median industry tenure of employees in restaurant manager and business operations positions was 20 years, and for those over 55, the median was over 30 years.

Who works in the U.S. restaurant industry?  77% of restaurant owners said they started in the industry at an entry-level position.  Operators held a variety of positions on their way up the career ladder:  84% being managers,  61% shift or crew supervisors  59% chefs or cooks  When asked how they became operators…  42% started from scratch  20% purchased the business  13% became a franchisee  94% of owners and operators said they will likely continue working in the industry until they retire .  84% of the youngest owners, those under 35, said they see the foodservice industry as a lifelong career.

What’s the word on Atlanta restaurants?

Travel + Leisure “[Atlanta] has become a genuine cultural and culinary destination— witness the buzzworthy restaurant scene, incorporating everything from grits to foie gras…”

The New York Times “In this new wave of Atlanta dining, originality and technique have joined a reverence for simplicity and Southern ingredients.”

Forbes Travel Guide “Atlanta’s restaurant scene is like a Georgia peach: vibrant, colorful and juicy. It’s perfect for delighting in upscale, yet ‘down home’ Southern fare or exploring some of the world’s finest culinary treats.”

Atlanta Restaurants Recognized Bon Appetite Staplehouse Atlanta’s Best New Restaurant, 2016 National Restaurant Association Archna Becker, Founder/Owner, Bhojanic Faces of Diversity Award winner, 2016 Conde Nast Traveler Two Urban Licks Greatest Restaurants Around the Globe, 2016 James Beard Foundation Several Atlanta Restaurants Restaurant and Chefs Awards semifinalists, 2016

Culinary Trends of 2017 The National Restaurant Association surveyed nearly 1,300 professional chefs — members of the American Culinary Federation — on which food, cuisines, beverages and culinary themes will be hot trends this year.

Pressing Issues Technology Growing Pains

Mobile Payment on the Rise

•

There is an abundance of new and varied technology products that restaurants can use to enhance their business.

•

New apps featuring mobile payments are becoming more and more popular among restaurant-goers.

•

Restaurants are in a race to always be tech-forward, however sometimes new technology can make the restaurant experience more complicated.

•

The trend of using a mobile device for payment is expected to rise over the coming years.

•

Systems may be difficult for staff to get accustomed to, and guests may experience systems that aren't userfriendly.

Pressing Issues Labor Pool is Dwindling •

•

•

Recruiting and retaining top talent remains a top challenge for operators.

There is so much competition among other industries for employees.

Workforce demographics are shifting as the younger labor pool is shrinking and there is a greater proportion of older workers.

A Generation of Foodies •

Restaurant patrons today are very different from what they were 20 or even 10 years ago.

•

Younger generations tend to have a sophisticated world-view when it comes to food.

•

Due to the rise of social media and celebrity chefs featured on TV shows, guests seem to pay more attention to everything from food sourcing, sustainability, diet-specific food and production.

•

Guests want to know where their food came from and how it was made.

•

Operators will continue learning how to cater to these types of guests, finding the balance between precise tastes versus becoming too niche and possibly turning off other guests.

Pressing Issues Legislative Initiatives •

The GRA works to protect the bottom line for the entire food service industry. By working with regulators and candidates for office, the GRA is always protecting what matters most.

•

The GRA engages in activities to enhance the advocacy position of the association through hosting events that recognize our members and elected officials for their work on behalf of the industry.

•

The GRA promotes the restaurant industry’s importance to the Georgia economy and community by increasing the presence of our elected officials at industry events and highlighting industry achievements in our local communities.

How will restaurants navigate these issues?

The Georgia Restaurant Association works to provide restaurant operators with the resources and tools to succeed.

Through communications, webinars and the knowledge center hosted at www.garestaurants.org, restaurants can stay abreast of what is coming down the pipeline.

Questions and Answers

RANDI GREENE TOURISM PROJECT MANAGER, ATLANTA METRO

GEORGIA DEPARTMENT OF ECONOMIC DEVELOPMENT

GEORGIA TOURISM Telling Our Story

2017

STATE OF THE INDUSTRY

Georgia Tourism grew in 2015.

Visitor Spending Jobs Supported Tax Revenue Generated

STRATEGIC SHIFTS Market Evaluation and Placement

Georgia Tourism Advertising Receives Top Box Ratings for:  Increasing familiarity with the travel product  Enhancing perceptions of the state  Influencing information gathering

Georgia Tourism Advertising

Broadcast and Radio

Awareness in Spot Markets 70% 60% 50% 40% 30%

Web traffic

+3.5%

Web traffic

+141.9%

Web traffic

+38.1%

20% 10% 0% Birmingham

Jacksonville

Greenville/Spartanburg

Economic Impact

Georgia Film and Television Economic Impact

WHY THE YEAR OF FILM?

STRATEGIES FOR YEAR OF FILM

Strategies for the Year of Film:

• Creation of film focused itineraries to be used for media pitches, business development and social media • The introduction of a statewide Georgia Movie Trail • Film "Selfie-Spot" Tour highlighting Georgia’s iconic film attractions

• Conduct desk-side media briefings to share Georgia's film story • Several film-focused FAM tours will be hosted for both travel writers and group travel companies

Strategies for the Year of Film:

• The launch of a innovative drive market media blitz highlighting movies and TV series made in Georgia • A new film landing page on ExploreGeorgia.org • Focus research to include survey analysis of existing film attractions

• Film focused engagement at the Visitor Information Centers • The introduction of film related educational opportunities including Camera Ready and Product Development sessions

THANK YOU

Questions and Answers

Upcoming Events FMO Interactive Training Tuesday, March 21 ACVB Board Room 10 a.m. and 1 p.m.

ACVB 104th Annual Meeting Thursday, April 20 Georgia World Congress Center - Georgia Ballroom 11:30 a.m.

Thank you to our Sponsors

THANK YOU