January 20, 2016 Executive Committee Presentation

ACVB EXECUTIVE COMMITTEE MEETING WEDNESDAY, JANUARY 20, 2016 | 8:00 a.m.

ACVB BOARD ROOM

CALL TO ORDER DARYL EVANS CHAIRMAN OF THE BOARD AND EXECUTIVE COMMITTEE

DESTINATION REPORT MARK VAUGHAN EVP/CSO

Atlanta Occupancy – November 2015 November 2015 YTD Occupancy

2014

2015

ACVB Tax Revenue District

72.0%

74.0%

Hotels w/500+ rooms

72.9%

75.2%

Hotels within 1-mile radius of GWCC

70.1%

73.2%

Metro Atlanta

69.1%

71.2%

Source: STR

Key Sales Activities • We finished 2015 at 107% of our room night goal and 108% of our lead goal • Demand share growth (November)+.04 (5.71%) in the top 25 markets Direct Sales Events • PCMA Annual Meeting • RCMA • American Bus Assn.

• NTA • Destination Showcase • Conference Direct • Travel South • ASAE Great Ideas

Vancouver San Diego Louisville Atlanta Washington San Antonio Winston Salem Colorado Springs

MAJOR GROUPS FOR FUTURE YEARS

Green Up = 10% above average Orange Equals = Within 10% +/- of average Red Down = 10% below average

BOOKINGS

Note: These numbers differ slightly from the Productivity Report due changes in room blocks and distribution of booking credit.

December 2015

Additional Rooms

5,260

Grand Total

240,869

Additional Rooms

213,069

2015 YTD

Grand Total

1,790,122

FINANCIAL UPDATE GREGORY PIERCE EVP/CAO/CFO

ATLANTA CONVENTION & VISITORS BUREAU FINANCIAL STATEMENT SUMMARY WITH FORECAST THROUGH NOVEMBER 30, 2015

CONSOLIDATED

CONSOLIDATED

2015

2015

2014

2015

2015

2015

ACTUAL

BUDGET

ACTUAL

YTD

FULL YR

FULL YR

YTD

YTD

YTD

VARIANCE

BUDGET

FORECAST

SUPPORT & REVENUE Public Sector

20,176,016

19,113,709

19,221,356

1,062,307

19,698,365

20,417,500

Private Sector

3,716,105

6,151,590

5,477,195

(2,435,484)

9,792,603

10,275,000

23,892,121

25,265,298

24,698,551

(1,373,177)

29,490,968

30,692,500

7,317,903

7,719,593

7,488,793

401,691

8,742,222

8,711,000

646,942

769,433

666,786

122,490

973,510

966,150

12,881,680

14,249,094

13,082,925

1,367,414

17,938,534

18,888,534

1,494,942

1,498,898

1,483,606

3,956

1,575,000

1,575,000

22,341,467

24,237,018

22,722,110

1,895,551

29,229,266

30,140,684

1,550,655

1,028,281

1,976,441

522,374

261,702

551,816

TOTAL SUPPORT & REVENUE

EXPENSE Payroll & Related Expense Other Operating Expense Direct Promotional Expense Capital Expense

TOTAL EXPENSE

EXCESS(DEFICIENCY) OF REVENUE

OVER EXPENSE

2015 Discretionary Pension Contribution $275,000 contribution to 401k/pension plan allocated on a pro-rata basis based on total compensation – to be made 1st quarter 2016 (approximately 5% of total compensation)

MARKETING UPDATE ANDREW WILSON EVP/CMO

ATLANTA.NET

SITE VISITS

YE 2015

ATLANTA.NET

PAGES PER VISIT

YE 2015

SOCIAL MEDIA

SOCIAL PLATFORMS OVERVIEW Fans/Followers

Growth

2015/2014

197,719

19,327

10.83%

Twitter

78,661

28,757

57.62%

Instagram

18,967

14,133

292.37%

Pinterest

4,809

1,158

31.72%

Google+

3,360

292

9.52%

Facebook

YE 2015

Social Media

YE 2015

AWARENESS & AFFINITY AFFINITY

Year-over-Year

60

-3% 2%

Millions

vs. Goal

50 40

Year-over-Year

500

-16%

450

vs. Goal

4%

30

Thousands

AWARENESS

400 350 300 250 200

20

150 100

10

50 0

0 Excludes Media Campaigns

2014

2015

2014

2015

ADVERTISING

CAMPAIGNS OVERVIEW

YE 2015

IMPRESSIONS* CONSUMER CAMPAIGNS

59.5 Million

+67% vs. YA +86 vs. Goal

6.7 Million

- 43% vs. YA +12% vs. Goal

(Summer, Halloween, Holiday Co-ops)

GROUP CAMPAIGNS (Reduced Digital spend by 30%, shift to Print)

* Digital Impressions

NEW AIRPORT VISITOR CENTER

GOVERNMENT AFFAIRS UPDATE MARCUS MARGERUM VP, GOVERNMENT & COMMUNITY AFFAIRS

ACVB Government And Community Affairs

National •

Open Skies   

•

Visa Waiver Program (VWP) Improvement & Terrorist Travel Prevention Act of 2015 – Passed in December 2015     

•

Free international markets for commercial aviation Delta, American and United want the US Government to “freeze” it’s open skies with United Arb Emirates and Qatar due to government subsides Atlas Air, FedEx, Hawaiian Air and Jet Blue support Open Skies

Improved information sharing among intelligence and law enforcement agencies Requires screening of all travelers against INTERPOL Increases the complexity of fraud resistance e-passports that contain biometric information Compels U.S. security agencies to conduct more frequent threat assessments of VWP countries Requires the Department of Homeland Security to strength its background check procedures

Air Travel Modernization   

American Society of Engineers rated US airport infrastructure a D+ and non ranked in the world’s top 25 U.S. air traffic control systems use WWII era radar technology U.S. Travel Request – Increase the passenger facility charge from $4.50 to $8.50

State - House •

HB 535 – Bruch Bill   

•

HB 677 - Casino Gambling  

•



To provide that religious officials shall not be required to perform marriage ceremonies that are in violation of their legal right to free exercise of religion Location: Judiciary Committee

HB 756 – RFRA Selling Goods or Services  

•

To reduce the hotel/motel fee from $5.00 to $2.50 Location: Transportation Committee

HB 757 – Pastor Protection Act 

•

To provide a limited number of licensed resort facilities in Georgia Location: House Judiciary Non-Civil Committee; House Second Readers

HB 733 - Hotel/Motel Fee  

•

Georgia Restaurant Association is leading the effort To allow restaurants to start serving alcohol at 10:30am on Sundays Location: Senate Regulated Industries and Utilities Committee; House Passed; Senate Read Second Time

A business shall not be required to sell goods or services to a religious organization or for a religious or matrimonial ceremony that is in violation of the seller’s right to free exercise of religion.

Location: Judiciary Committee

HR 807 - Constitutional Amendment – Casino Resorts  

To provide a limited number of licensed resort facilities in Georgia Location: House Regulated Industries; House Second Readers

State - Senate •

SB 129 – Religious Freedom Restoration Act (RFRA)  

•

SB 252 – Hotel/Motel Tax Repel 

•

To provide for the preservation of religious freedom Location: Judiciary Committee; Senate Passed; House Second Readers

Senate Prefiled

SR 675 – English Official Language 

Senate Prefiled

Potential Legislation •

Pastor Protection Act

•

Short-Term Rentals (Air BnB)

•

Ride-Share (UBER)

Georgia Prospers

• •

Georgia Chamber of Commerce sponsored program Over 100 companies have signed the pledge, including the ACVB

PRESIDENT’S REPORT E

WILLIAM PATE PRESIDENT & CEO

OLD BUSINESS GREGORY PIERCE

2016 Board Elections

• • • •

Jo Ann Herold Martin Gray John Stephenson Jack Priblo

Interface Georgia Aquarium Chick-fil-A, Inc. Georgia Pacific

2017 2018 2017 2018

NEW BUSINESS

ADJOURN