SCT Annual Report 2022-2023 by sonomacounty

® SoNoMa CoUnTy ToUrIsM AnNuAl RePoRt Fy 22-23

LETTER FROM THE CHAIR

DearPartners,

Fiscalyear2022–2023wasasuccessfuloneforthetourismandhospitalityindustryinSonomaCounty.Overall revenuederivedfromtourismactivitiessurpassed2019,visitationreachedpre-pandemiclevels,andthecelebration oftrulyemergingfromthepandemicbroughtwidespreadoptimism.Thiswascloudedsomewhatbypressureson theeconomy,skyrocketingin昀氀ationandsurginginterestratesforborrowers. But,pent-updemandandlingering hesitationabouttravelingabroadbroughttravelersbacktoSonomaCounty. TheLongwoodsInternationalTravels USAvisitationstudyincludedatthebackofthisreportprovidesabroad-basedlookatvisitationin2022.

Becauseofthegreaterthanexpectedstrengthoftheindustry,ledlargelythroughtheTransientOccupancyTax (TOT),SonomaCountyTourism(SCT)realizedfundingitwasn’tanticipating. Duetothis,SCTwasabletoengagein programmingonascalethatisgenerallybeyondtheorganization’sscopeofwork.InApril,theTODAYshowbrought itsthirdhourprogram,includingallhosts,toSonomaCountyforalivenationalbroadcast. Thevisitalsoincluded the昀椀rst-everStartTODAYWellnessRetreatthatshowcasedthearea’sappealasawellbeingdestination.Notonly wasthedestinationgiventremendousexposure,butweweredelightedthatsomanysmallbusinesseswereableto gainnationalrecognitionthroughthisbroadcastandtheancillarysocialmediaandin-personactivations.Alsothat week,theCalSAE(CaliforniaandOregonSocietyofAssociationExecutives)ElevateConferencecametoSonoma County.Throughvariouseventsandtraveltokeypointsofinterest,thisin昀氀uentialgroupwasabletoexperience thedestination–meetingbookingshavealreadyresulted!And,theteamwasabletocompletetheDestination StewardshipandResiliencyMasterPlan. Thismulti-year,multi-phasedinitiativewillserveastheroadmaptothe futureofSonomaCountyasatourismdestination.

Theyearalsomarkedtheorganization’sreturntotheinternationalsalesandmediarelationsarena. Withrepresentation of昀椀cesintheU.K.,GermanyandAustralia,SCTmadeitclearthatSonomaCountyisreadytowelcomeinternational visitors.And,becomingahighlyanticipatedevent,theindustryrecognizedthe2022StarsoftheIndustryshowcasing tourismandhospitalityemployeeswhotrulygoaboveandbeyondtocreateexceptionalcustomerexperiences.

ThesebenchmarkeventswerejustafewofthemanyprogramsSCTinitiatedtohelpraisebrandawarenessandcompel traveltothedestination.

Thisannualreportprovidesadetailedoverviewoftheyear. Herein,you’ll昀椀ndthe昀椀nancialreports,aprogramming synopsisandin-depthresearchmaterialswithintheappendices. WehopethiswillprovideinsightsintoSCT’s programming,pro昀椀cientbusinessoperations,stewardshipofthisdestinationandexpandedbusiness-building opportunitiesforpartnersalldesignedtoboostrevenueforareabusinessesandtheCounty,andcreatecompelling reasonsforleisureandbusinesstraveltoSonomaCounty.

Don’thesitatetoletmeoranyoneontheboardorSCTstaffknowifyouhaveanyquestionsregardingtheinformation providedinthereport. Thankyouforyourgreatsupportandpartnership!

EdwardRoe Chair,SonomaCountyTourismBoardofDirectors

FinancialReports ....................................................................................................5 FY22-23StrategicPlan-FundamentalComponents...............................................................11 OrganizationalPriorities.....................................................................................12 ProgrammingKPIs ..................................................................................................14 BusinessRecovery ...........................................................................................14 BusinessDevelopment .......................................................................................15 TravelTrade..................................................................................................18 Marketing/Communications ................................................................................19 DestinationStewardship.....................................................................................23 OrganizationalSustainability................................................................................29 AppendixA:AnnualIndustryPerformance.........................................................................33 AppendixB: DomesticVisitorProfile ...............................................................................36 AppendixC:SonomaCountyTourismBoardofDirectors/Staff...................................................39 TABLE OF CONTENTS 3

FINANCIAL REPORTS

Thebudgetfor昀椀scalyear2022-2023was昀椀nalizedinMarch2022andapprovedinApril2022. Revenueswerebased offconservativegrowthfortheyearassumingayearwithoutanypandemicshutdownsorrestrictions. TheTOT revenuefor昀椀scalyear2021-2022waslargelyunknownatthistimeandthecountyperformedmuchbetterthan anticipatedduringthattimeframe. Revenueforthelast3quartersofthat昀椀scalyearcameinalmost$1,000,000more thananticipated. ThisallowedustoadjustourexpectedspendinglevelsforFY22-23andaddinextraprogramming thatwefeltcouldboostthecounty. Wecontinuetoreforecastouranticipatedrevenueandexpenseseachmonthtobe abletopivotasquicklyaspossiblebasedonmarketperformanceandneedswithinthecounty.

Fiscalyear2022-2023startedoffstronginthesummerbutstartedtoseesomesofteninginthefallandover thewinter. PoorweatherconditionsJanuarytoAprilhurtoccupancylevelsinthecountyandthere-openingof internationaldestinationsalongwithtraveldealscontinuedtoslowoccupancythroughoutthespring. Wewereable touseoursurplusfundsfromtheprioryeartoaddfundingtoouradvertisingcampaignsforthoseneedperiods. In additionweusedfundstosponsorthe3rdHouroftheTodayShowtohighlightthecountyinApril. Wehadanticipated fundingtheVisitorCentersinFY22-23whichdidnotcometofruitionsothatmoneywasshiftedtootherprogramming suchasattendingadditionaltradeshows,bringinginmeetingplannersforfamiliarizationtoursandsponsoringevents beingheldbothinSonomaCountytoattractovernightguestsandateventsattendedbymeetingplannersandtour operatorstoshowcasewhatthecountyhastooffer. Wealsousedtheadditionalfundingtoredesignourwebsiteand tocontinuetodevelopandaddmorefeaturestoourSonomaCountyApp. In昀椀scalyear2021-2022,weembarkedon aResiliencyandStewardshipMasterPlanandthiswas昀椀nalizedinthis昀椀scalyear. Fundinghasbeenallocatedinfuture yearstoworkontheprioritiesthatwereidenti昀椀edinthatMasterPlan.

F22-23OriginalBudget 48.6% Marketing $4,829,957 21.5% Business Development $2,134,123 12.4% Community Engagement $1,231,086 17.6% Administration $1,752,402 $9,947,568 F22-23MidyearReforecast 55.5% Marketing $6,489,012 19.5% Business Development $2,286,115 08.4% Community Engagement $975,656 16.6% Administration $1,944,446 $11,696,229 F22-23ProjectedResults 55.1% Marketing $5,866,654 18.7% Business Development $1,985,760 08.9% Community Engagement $950,516 17.3% Administration $1,841,030 $10,643,960 48.6% 17.6% 12.4% 21.5% 55.5% 16.6% 8.4% 19.5% 55.1% 17.3% 8.9% 18.7% 5

ExpensebyCategory Forecast Budget Advertising $2.250,973 21.1% $2,148,000 21.6% ClientEvents,FAMandEntertainment $411,734 3.9% $524,170 5.3% TravelandTradeshows $305,514 2.9% $301,505 3.0% DigitalEngagement $1,945,976 18.3% $917,666 9.2% OrganizationTools $112,926 1.1% $76,758 0.8% Research $239,393 2.2% $164,990 1.7% EventandOrganizationSponsorships $426,907 4.0% $390,000 3.9% Memberships $41,230 0.7% $61,669 0.6% ContractServices $771,171 7.2% $647,800 6.5% ProfessionalDevelopment&Training $312,000 2.9% $264,950 2.7% DestinationProgramming $134,068 1.3% $510,352 5.1% PayrollandHumanResources $3,029,852 28.5% $3,238,340 32.6% Technology $153,209 1.4% $138,512 1.4% Of昀椀ceSuppliesandEquipment $55,919 0.5% $79,666 0.8% FeesandLicenses $178,967 1.7% $228,770 2.3% FacilitiesExpense $241,110 2.3% $254,420 2.6% $10,643,959 $9,947,568 ExpensebySourceFunding TOT BIA Advertising $69,068 1.5% $2,181,905 35.7% ClientEvents,FAMandEntertainment $155,660 3.4% $256,074 4.2% TravelandTradeshows $0 0.0% $305,514 5.0% DigitalEngagement $1,575,752 34.8% $370,224 6.1% OrganizationTools $45,973 1.0% $66,953 1.1% Research $110,340 2.4% $129,053 2.1% EventandOrganizationSponsorships $149,414 3.3% $277,494 4.5% Memberships $55,536 1.2% $18,695 0.3% ContractServices $48,119 1.1% $723,052 11.8% ProfessionalDevelopment&Training $265,139 5.9% $46,871 0.8% DestinationProgramming $134,068 3.1% $0 0.0% PayrollandHumanResources $1,332,919 29.2% $1,706,933 27.9% Technology $153,209 3.4% $0 0.0% Of昀椀ceSuppliesandEquipment $24,626 0.5% $31,293 0.5% FeesandLicenses $174,917 3.9% $4,050 0.1% FacilitiesExpense $241,110 5.3% $0 0.0% $4,525,850 $6,118,110 42.5% 57.5% 6

1.Achievea5%year-over-yearincreaseinrevenuetoSonomaCounty’slodgingpropertiesasreportedthroughthe DeanRunyaneconomicimpactsurvey.

TheDeanRunyan2022EconomicImpactreportshowsrevenuetoSonomaCountysurpassedpre-pandemic levelsby2.7%.

2.Increaselengthofstayfrom2.8nights(2020)to3.1nights(orlonger),focusingonwinterandspring,helpingto 昀氀attenweekendvs.weekdaytravel(perLongwoodsInternationalVisitationStudy).

The2022LongwoodsInternationalVisitorStudyshowslengthofstaydecreasedfrom2.8nightsin2020to1.9 nightsin2021. 2022didseeaslightincreaseto2.1nights,butwedidnotachievethe2.8nightgoal.Theslow returnofinternationaltravelandgroupswerekeyfactorsinthisresult,however,wealsosawamorefocused visitationfromtheBayAreaandnorthernCalifornia. SCTcontinuedtoandwillcontinueinthefutureto advertiseindirect昀氀ightmarketswiththeaimofgainingvisitsfromleisuretravelerswholivefurtherawayandwill staylonger.

3.Increasegroupleadstopartnersby10%year-over-year;generate12,000in昀氀uencedroomnights.

ThroughtremendouseffortsoftheBusinessDevelopmentteam,thisgoalwassurpassed:

•12,365in昀氀uencedroomnights(103.04%ofgoal)

•$3,934,959inhotelroomrentalrevenue+TOT+BIA.

•Thisrepresentsa271%year-over-yearincrease

4.GenerateamarketingprogramReturn-on-Investmentthatexceedspre-pandemiclevels(perLongwoodsROI Study)andcontinuestoshowahighlevelofcustomerawarenessofSCTadvertising.

OrganizationalKPIs(FY22-23) 2017 2018 2019 2020 2021 2022 EconomicImpactof TravelinSonoma County TotalDestinationSpending($Million) $2,084 $2,200 $2,237 $1,137 $1,196 $2,299 Earnings($Million) $767 $815 $863 $653 $763 $931 Employment $22,510$22,380$22,360$16,260$17,610$21,150 LocalTaxes($Million) $97 $108 $110 $74 $115 $130 StateTaxes($Million) $85 $91 $95 $61 $80 $93 TotalTaxes($Million) $182 $199 $204 $135 $195 $223 Source: Dean

Associates FundingSource FY20-21-Actuals FY22-23–Estimated Change TransientOccupancyTax $3,516,667 $3,088,183 -12.2% (unincorporatedSonomaCounty) **includespriorperiodslatepayments ($428,484) SCTBBusinessImprovementArea $5,912,755 $5,652,233 -4.4% ($260,522)

Runyan

SCT’spaidadvertisingcampaigncontinuestodelivertremendousreturnoninvestmentresults:

2021(April–Aug)

2022(Jan–April)

‘ For every dollar spent on tourism paid advertising, the return is noted in the 昀椀rst number.

² Due to the paid marketing campaign (only). This does not represent overall annual visitor spending.

ThisisamongthehighestROIinthetourismindustryshowcasinganenormouslyef昀椀cientandeffectivecampaign.

5. Ensuretheorganization’sDEIimperativehasahighlevelofinclusionandsatisfactionwithintheprogramming (internal)anddiverseaudiencesarebeingincludedatincreasinglyhigherlevelsinsalesandmarketingpieces (external).

• SCTcontinuedtoworkonitsDEIgoalsthroughanumberofcomponents:

• Teamhiringpractices

• WorkingwiththeCountyontheGAREAssessmentfortourismbusinesses(speci昀椀cally vacationrentals)

• ContinuededucationthroughparticipationinclassesofferedthroughDestinationsImternational

• TheSCTexecutiveteamcompletedtheDestinationsInternationalEquity,DiversityandInclusion onlinecourse.

SCTdoesneedtomovefurtherforwardintotrueDEIintegration. Thiswillbedonethroughhiringaconsultantto steerthisinitiative.

6. Bolsterpartnersatisfactionintheorganization’seffortswithresultsshownthroughanannualpartnersurvey achievingahighorveryhighoverallrating.

SCTcreatedanddistributedapartnersurveythatwasinthe昀椀eldJune7–Aug.3toidentifyanumberofkey insightspertainingtopartnersatisfactionwithSCT’sprograms,thestateoftheindustryandconsiderationsSCT shouldbeawareofasnewprogrammingisdesigned.

Whilequestionswereaskedoutsideoftheprogrammingsatisfactionlevels,andSCTwillmostcertainlyconsider allcomments–bothpositiveandnegative,theprogrammingsatisfactionmatrixisthecomponentforwhichthe SCTteammustbelaserfocused.Withinthissection,ninequestionswereaskedofpartners.

PleaseidentifytheeffectivenessofSCT’sInitiatives(withPartnerresponses):

Year/Paid Overall TaxRevenue Incremental IncrementalIncremental CampaignPeriod AdvertisingROI1 ROI Trips VisitorSpending2 Taxes

$166:1 $18:1 580,000 $94M $10M ($.6Madinvestment)

2019(Jan–June)

$203:1 $21:1 1,500,000 $164M $16.6M ($.8Madinvestment)

$262:1 $27:1 700,000 $106.4M $10.8M ($.4Madinvestment)

IdentifytheeffectivenessofSCT’sInitiatives(withpartnerresponses):

200participantsrespondedtothesurveyandthisquestion.

Whilemostofthesurveyrespondentsrespondedfavorably,thesurveyinitsentiretyprovidesgreatinsightsinto theareasforwhichpartnersaskSCTtobetterservetheirneeds.

7. Ensuretheprocessforlong-termfundingsecuredinFY21-22isoperationalandfundsaredistributedtothe organizationasdesignated.

Recognizingtheneedtodiversifyitsfundingsourcesandmorefullyincludeagrowingsectorofthelodging industryintothesalesandmarketingeffortsofSCT,theorganizationworkedtointegratetheshort-term-rental communityintoitsBusinessImprovementArea(BIA)program. Theprocesswethoughtwouldbeconcluded priortoJune30,2022requiredadditionaltimetogetthroughallphasesofconveyinginformationandobtaining approvals,sotheKPIcontinuedintoFY22-23.

Theorganizationworkedthroughtheprocessofinformingandgainingsupportfromeachmunicipalitywithin theBIAstructureandhadtheprogramapprovedbytheCounty. Throughouttheprocesstheshort-termrental communitywaskeptinformed,butwhenthe昀椀naldiscussionswiththatsegmentoccurred,objectionsfrom owners/managersweresuchthatSCTdeterminedthetimingwasnotrightforthisintegration. Thisresultedin SCTforminganewVacationRentalCommitteeworkingtogainbetterinsightsintothiscriticallodgingsectorand identifyopportunitiestobettermarketthevacationrentalexperience.

Workcontinuesonidentifyinglong-termfundingsourcesthathelptheorganizationbecometrulyresilientagainst potential昀椀nancialimpacts.

Extremely Somewhat Not Not Initiative Effective Effective Effective Applicable Providetourismperformanceand 47% 37% 5% 12% marketresearchinsight Providenetworkingopportunities 37% 46% 7% 10% Providemarketing,advertising,PRand 44% 45% 6% 4% otherpromotionalopportunities Developprogramstoadvancesustainabletravel 36% 43% 5% 16% andpromoteresponsibletravelbehavior Offerpartnersopportunitiestoincludeevents 36% 43% 5% 17% inSCT’sonlinecalendarofevents Offeropportunitiesforpartnerstoparticipatein 23% 42% 9% 26% tradeshows,salesmissionsandclientevents Developandpromotepartnerdealsandoffers 24% 48% 10% 19% onSCT’swebsite Providepartnereducation/informationsessions, 25% 51% 5% 20% webinars,brie昀椀ngs,etc.

STRATEGIC PLAN FUNDAMENTAL COMPONENTS

SonomaCountyTourismisguidedthroughitsfoundationalelements. Eachoftheseworkstogethertocreateasolid basefromwhichallprogrammingisbuilt.DuringFY22-23,theseorganizationalstatementswere:

Mission: InspireovernighttraveltoSonomaCountythatbolsterstheregion’seconomyandencourages responsiblestewardshipofthecommunity’sabundantresources.

Vision: SonomaCountywillbethepremierdestinationinNorthAmericaforresponsibletravelerswhoenjoy, protectandpreservethearea’sbountifulnaturalandculturalresources.

Values:

• Strategic –SCTapproachesallprogramsandopportunitieswithafoundationofresearchand structuredwithconsiderationforallpotentialprogramoutcomesandimpactstotheorganization,key stakeholdersandtheCountyatlarge.

• Transparent –AllbudgetsandprogramsadministeredbySCTaredonesowithinanenvironment oftransparency. Thishelpsensureallstakeholdershaveahighlevelofunderstandingregardingthe operationaleffectivenessoftheorganizationandcanchampiontheorganizationasanef昀椀cient stewardofthefundingprovided.

• Collabora琀椀ve –SCTissuccessfulonlyifitspartnersandstakeholdersaresuccessful. Thisoccurs withinarobustbusiness-developmentenvironmentofferingopportunitiesforconstituentstobene昀椀t frompartnershipswiththeorganizationandgainbusiness-drivingbene昀椀tsfromtheprograms administeredbytheorganization.

• Inclusive –SCTiscommittedtoensuringpersonsofallbackgroundsareincludedandwelcomed throughoutitsinternaloperationsandexternalaudienceoutreach. Astrongdedicationtodiversity, inclusionandequitywillguidetheorganization.

• Entrepreneurial –SCToperatesasanambitiousandnimblebusinessseekingnewopportunitiesfor revenueandgrowth.SCTstaffersworkto昀椀ndbusinessdevelopmentopportunitiesthatdriverevenue forpartnerbusinessesandgeneratenewrevenuefortheorganization.

• Trusted –SCTwilldevelopprogramsfoundedonresearch,drivenbybest-in-classexecutionandwith resultsconveyedviavariouspartnercommunicationschannelsinatimelyandtruthfulmanner.

FY22-23OrganizationalPriorities

Business Recovery Astheworldmovesintoapost-pandemicenvironment,SonomaCountyTourismmust lookatboththelong-andshort-termstrategiesforsuccessfullydrivingbusinesstothe destination. Robustsalesandmarketingprogramswillbeconductedthatdrivebrand awareness,evolvethebrandtomeetshiftingconsumerpreferencesandcompel visitation. Thisisalldoneoverlayedonadata-drivenfoundationofproprietary,general tourismindustryandconsumerresearch.

Thekeystrategieswithinthispriorityare:

• Obtainandconveyindustryinsightsandmarketinganalytics

• Driveinquiryandconversion(visitation)throughadvertisingandotherpaidopportunities

• Amplifythebrand

• Acquire,engageandexpandkeyaudiences

• Developbusinessfromexistingandnewmarketsegments

• Engagepartners

• Restarttraveltrade/internationaloutreachasthemarketreturns (Each will be covered in greater detail in the programming section.)

Destination Stewardship Asthenation’s昀椀rstDestinationStewardshipOrganization,SCTiscommittedtotaking abroad-basedapproachtoitsresponsibilitytoprotectandpreservethedestination. Thismeansthatwhilemarketingandsaleswillcontinuetodrivethelionshareof thebudgetandprogramming,SCTalsowillworkmorecloselywithcommunity organizationsandlandmanagerstohelpensureavibrantlong-termfuturefor SonomaCounty,addressingcriticalissuesofimportancetoresidentsandimperative forthelong-rangehealthofallcommunities.

Thekeystrategieswithinthispriorityare:

• Encourageresponsibletravelbehaviors

• Alignwithlocalorganizationsandnationalprogramswithasimilarmission

• Developandcommunicatebroad-basedapproachtodestinationmanagement

• InitiateandmaximizetheAccreditedHospitalityProfessional(AHP)program

(Each will be covered in greater detail in the programming section.)

Organizational Sustainability Asanot-for-pro昀椀torganization,fundedthroughpublicfunds,SonomaCountyTourism mustoperateitsbusinessinafullytransparent,ethicalmannerensuringpublicdollars areallocatedinthemosteffectivemannerpossible. Helpingtoensurethelong-term healthoftheorganizationalsomeansdiversifyingitsfundingsourcestolessenreliance onanyonefundingstream.

Thekeystrategieswithinthispriorityare:

• Developandintegratelong-termfunding.

• Runaneffectivebusiness.

• Createahigh-performanceenvironmentfoundedinemployeeengagement,wellnessandteamdevelopment.

• EnsureteaminclusionandstrongcommitmenttoDiversity,EquityandInclusion(DEI).

• Conducttimelyandrelevantstakeholderoutreach.

• Ensureahighlyengagedboardofdirectorsandcommittees.

• Prepareforandmanagecrisessituations.

(Each will be covered in greater detail in the programming section.)

When you travel in Sonoma County, every action is an opportunity, every choice created change, every pause has an effect. Learn more at sonomacounty.com/pause

FIND YOUR ESCAPE IN SONOMA COUNTY’S NATURAL BEAUTY. PAUSE TO RECONNECT.

PROGRAMMATIC KPIS

BusinessRecovery

Overall

• Obtainandconveyindustryinsightsandmarketinganalytics,providingtopartnersatleastmonthlyvia PartnerNewsandInsightsnewsletter.

SCTprovidedpartnerswithmonthlyTourismInsightsandPerformancenewslettersthroughouttheyear. Thesenewslettersconveyedtheperformanceofthelocalindustryalongwithtrendsandotherinsights helpfulformakingdata-supportedbusinessdecisions.

SCTpartneredwithleadingresearch昀椀rmstoprovideinsightsthatlaidthefoundationforallbusinessdecisions:

• LongwoodsInternational–Annualvisitorstudy,MarketingROIstudy

• DeanRunyanAssociates–Annualeconomicimpactreport

• TourismEconomics–Monthlydashboardshowingacollectiveofindustrydata

• Near–geo-speci昀椀ctracingoftravelersinthedestination

• TravelClick–futuresforecastofpendingbookedbusiness

• STSairportactivity

ThisdataisavailableinthePartnerssectionofSonomaCounty.com.

• DriveVisitationamongResponsibleTravelersthroughadvertising,enhancedcontentdistribution,thenew SonomaCountyAppandotherpaid,earnedandownedopportunities.

The昀椀rsthalfofFY22-23sawrobustvisitation. SummerthroughFall,andmostnotablyabsentimpacts from昀椀res,provedverysuccessful. Thesecondhalfoftheyear,however,wasmarkedbyrecordrainfall,which whiletremendouslybene昀椀cial,didimpactvisitation.

SCT’smarketingteam,throughindustryandproprietaryresearchleanedintoconsumers’interestinself care,wellnessandconnectingwithfamilyandfriendsthroughtravelexperiences. Thecampaign,Pause& EffectshowcasedSonomaCounty’scapacitytobridgebothwellbeingandresponsibletravel.

Thecampaign,withaNov.1,2022-April30,2023昀氀ight,invitedtravelerstoreenergize,relaxandreconnect. Thecampaignincludedresponsibletravelmessagingdeliveredthroughcontentdevelopment(paid,earned andownedchannels),updatedimageryandoptimizedmediachannels.

SCTalsofullylauncheditsappwithcontinuedplatformdevelopment. AtthecloseofFY22-23(3,313)have downloadedtheappanduseittohelpplanthevisit.

• Continuetoseeyear-over-yeargrowthofrevenueintotheBIApartnersandthecounty.

Fiscal year 2018-19 BIA revenue: $5,038,723

Fiscal year 2022-23 Estimated BIA revenue: $5,652,233

Growth of 11%

SCT’sGroupBusinessDevelopmentteamemployedsmartrelationshipbuildinganddestinationpromotioninitiatives throughouttheyeartoin昀氀uencebookingsforbusinessandleisuregroups.

• Engageinone-on-onemeetingswithkeyplannersthroughinteractionsincludingtradeshowattendance, salestrainings,clienteventsandin-personof昀椀cemeetings.

• Teamgoal:841meetings(10%increaseoverFY21-22)

• Result:1,482--176%ofgoal

• Tradeshows,Conferences,&EventsAttended:47

• ClientEvents:4

• HostedFAMTours:6

• Elevategroupbusinessandleisuretravelleadsandpartnerbooking,highlightingurbanexperiencesand uniquevenues.

• Teamgoal:12,000in昀氀uencedleadsperbusinessdevelopmentmanager(increaseof9%overgoal)

• Result:In昀氀uencedRoomNights:13,095(109%ofgoal;12,000)

• ComparedtoFY21-22’sproductionof3,332roomnightsat$1,289,338,22-23 representsaYoY increaseof271%in昀氀uencedroomnights.

• EconomicImpact:$4,145,358(RoomRevenue:$3,665,573;TOT:$406,473;BIA:$73,311)

• CventResponseRates:

• RFPResponseRate:99%

• AverageResponseTime: <12hrs

• WeddingGuide:

• Views:26,547

• TotalPageViews:48,197

BusinessDevelopment

• PartnerReferral(clickthroughs):13,937

• AveragetimeontheGuide:2minutes12seconds

• TopMarkets:BayArea,LosAngeles,Sacramento,Seattle,andNewYork

SCTheldasessionwiththeSantaRosahotelstoidentifyhowtheorganizationcanbetterrepresentthese urbanproperties. Asaresult,SantaRosawasthefeaturedcoveroftheSpringSummerSonomaCounty inspirationguide.

• EngagePartnersthroughbusinessdevelopmentopportunitiesinkeyaudienceandmarketsegments. PartnersalsoparticipatedinaholidaysalesmixereventaboardtheSanFranciscoGiants’yachtincludinga touraroundtheSanFranciscoBay.TheBusinessDevelopmentteamworkedtoidentifyopportunitiesfor partnerinclusionintradeshows,connectionstomeetingplannersandotherbusinessbuildingopportunities.

Partnersparticipatedintradeshows,clienteventsand salesmissions:

• SanFranciscoClientEvent

• IMEX

• IPW

• UKSalesMission

• CalSAEElevate

• VisitCaliforniaLuxuryForum

TheSalesteamorganizedaquarterlyseriesof“Destination SalesTeam”mixers,invitingsalesteamsfromhotels,wineries, attractions,touroperators,andotherbusinesseswhofocuson groupsandtraveltradesales. Mixerswereheldin:

• BallettoVineyards–UnincorporatedSonomaCounty

• ParadiseRidge–SantaRosa

• BrooksNoteWineryandTastingRoom–Petaluma

• BlueRidgeKitchen–Sebastopol/TheBarlow

• Continuetoincreaseparticipationinandrevenuefromthe BandwangoSonomaCountyTastingPass.

• Teamgoal:$37,405(10%increaseoverFY21-22)

• Result: TotalRevenue:$113,747

• SCTRevenue:$22,186

• SCTPartnerRevenue:$76,512

• NumberofPassesSold:2,563

SONOMA COUNTY TASTING PASS

One Pass, Many Tastings.

Asitwasclearleisuregroupsandinternationaltravelwouldbegintoemergefollowingthepandemic,SCTmoved strategicallybackintothemarket. PercyStevens,awell-respectedindustryveteranwashiredasDirectorofTravel Tradeandinitiativesinkeyinternationalmarketstookshape.Whilemanyofthegoalswerethosethatprovideda benchmarkforfutureprogramming,theteamaggressivelyworkedtoreaf昀椀rmtheappealofSonomaCountytoglobal touroperators,wholesalersandOnlineTravelAgencies(OTAs).

• Restarttraveltrade/internationalmarketinginthreekeymarkets:U.K.,Germany,Australia.Representative 昀椀rmshavebeenhiredinallmarketsandeffortsareunderway.

SCTreengagedrepresentative昀椀rmsintheU.K.,GermanyandAustraliaandhasbegunin-market promotionalefforts.

• MarketsServed:USA,Canada,Mexico,UnitedKingdom,Australia,Germany,India,France,Italy

• ClientSiteToursandInternationalFAMTours:7

• Tradeshows,ConferencesandClientEvents:11,7731:1MeetingsandTrainings

• RepresentSonomaCountyatfourdomestictradeshows:

• VisitCaliforniaLuxuryForum(Oct‘22)

• VisitCaliforniaSignature(Nov’22)

• GoWestSummit(March‘23)

• USTravelIPW(May’23)

• RepresentSonomaCountyatfourinternationaltradeshows: SonomaCountywasrepresentedat:

• BrandUSATravelWeekFrankfurt(Aug’22)

• VisitCaliforniaMexicoTradeEvent

• IPW–USTravel/BrandUSAinternationaltravelshow

• ILTM

• RoomNightsProduced:3,464

• Note:RoomnightsarearesultofSCT’sownedcampaignsandnotacumulativetotalof allroomnightproductionfrominternationalsources.

• 12%increaseindestinationbookingsthroughHotelbeds.

• ExpandIn-marketproductofferingsspeciallyforlodgingprogramming.

ThetwocampaignsdonethroughOTAs,ExpediaandHotelbedswerespeci昀椀callydesignedtodrivebusiness toBIAlodgingproperties.

• Addnewhotelstotheoptionsavailabletoleisuregroupplanners/operators.Increaseinternationalprograms offeredandItineraryInclusionincataloguesspeci昀椀callyfor昀氀y-driveofferings.

• Germany-InFY22-23,SCTexecuted昀椀vepromotionalcampaignswhichresultedinfour newitinerariesandthreenewhotelsadded.

• UK–InFY22-23,thecampaignsexecutedresultedinthreenew昀氀y-driveitinerariesaddedtotour operatorofferings.

• Australia–InFY22-23,thecampaignresultedinonenewitineraryaddedtotouroperatorofferings.

TravelTrade 18

• Engagetargetedprioritymarketsandaudiences.

SCTcompletedthroughitsIntentMarketing“PauseandEffect”campaignnotedinthisreport.During theyear,asthedrivemarketcontinueditsstrength,butdirect昀氀ightmarketscontinuedtoexpand,SCT evolveditsmarketingchannelstoreachthesemarkets.Whilethedrivemarketcontinuestobethe predominantvisitorbase,wecontinueoutreachtodirect昀氀ightmarketsthroughmaindigitalchannels.Those inkeymarkets(primarilywinebuyers)ofNewYork,Chicago,HoustonandFloridacitiesarethoseinwhichwe reachwithsecondarydigitalmarketingandmediaoutreach.

TheimpactoftheTODAYshowwillbemeasuredintheupcomingmarketingROIstudy.

• Amplifystorytellingaroundcities,townsandneighborhoods.

SCT’s“What’sHappeninginSonomaCounty”videoserieskickedintohighgearduringtheyear.Hosted byChrisVomvolakiswithAJRuizasthevideographer,theseriesaimstoprovideabuzzy,story-driven approachtoconveyingupcomingeventsandreasonsforatimelyvisittoSonomaCounty.Episodesincluded:

• WinterLights:SkatingontheSquare

• ExtendedStayPromotion

• CheeseinSonomaCounty

• AprilisWineMonth

SCTalsostarteditsNeighborhoodsProject–anin-depthlookattheuniquefeaturesofSonomaCounty’s neighborhoodsandtownsconveyedthroughvideostorytelling. TheprojectwillexpandduringFY23-24.

• LaunchSonomaCountyAppthroughtophase2–creatingadditionalopportunitiestodrivebusinessand enhanceloyalty.

Theappwaslaunchedandhadtremendoussuccessduringtheyear.

Teamgoal:1,400activeusers

Result:3,133activeusers-220%ofgoal

Additionalstats:

• 17,000downloads

• Appstorerating:4.8/5

• Numberofpartnersfeatured:2,528

• NumberofChallenges:23

• Averagetimespentintheapp:3:31

Mediacoveragespeci昀椀ctotheapp:

Travel+LeisurefeaturedtheappinJan.2023:ThisInteractiveAppWillHelpYouPlanthePerfectTripto Sonoma(travelandleisure.com)resultinginenormousinterestintheproduct.

Marketing/Communications 19

• Continuetodevelopresponsibletravelmessaging,andincreaseexposureaudiencestoresponsibletravel content,includingresponsibletravelpage,LNTprinciples,videoviews,travelkindlypledge,etc.

ResponsibletravelisnowfullyintegratedintoallcomponentsofSCT’ssales,marketingandcommunity engagementefforts. ThepaidmediacampaignthatbeganJan2023directspeopletoSonomaCounty.com sustainablepagehelpingensuregreaterexposuretotheoverallorganizationalcommitmentandthe variousinitiatives.

InOct2022,SCTwithitsagencypartner,FahlgrenMortine,developedatargetedresponsibletravelstrategy designedtobuildoverthreephasesandbridgethegapbetweenwellnessandresponsibletravel. During FY22-23the昀椀rstphasewascompleted:

Inviteandinform–ThisphaseaimedtodriveupperfunnelawarenessofSonomaCountyasa responsibletraveldestinationanddrive/encouragesustainabletraveltoandthroughoutthe destination. CampaignobjectivesweretopositionSonomaCountyasaleaderinthesustainableand responsibletravelspaceandtodriveweekdayvisitsduringtheoff-season.Tacticsincludedutilizing mediatogenerateawarenessofResponsibleTravelmessagingandincreasewebsitetraf昀椀ctoSCT’s owneddigitalchannels.

• Paidmedia

• InitiativesreachedResponsibleTravelersinpriorityin-stateandout-of-statemarkets andcreatedopportunitiesforaudiencediscoveryandawarenessofSonomaCounty throughthelensofPause&Effectmessaging.

• Mediamixincludeddigital,video,audioandcontentsponsorships.

• Totalmediacampaignspend:$900,489

• MediaKPIsweremonitored,measuredandoptimizedagainstimpressiondelivery,clicks andwebsiteengagementonamonthlybasis.

• EarnedMedia

• 94totalplacementssecuredincluding37Top100placements

• Secured13totalfeatureplacements

• 398,435,619totalaudience

• 7.7BarcelonaPrinciples(qualitative)averagescoreforNovember–April (goal is to maintain at least a score of 7)

• MeasureandreportROI–achievingpre-pandemiclevelof166:1.

ThepaidmarketingReturnonInvestment(ROI)studywasconductedbyLongwoodsInternationalforthe

Spring2022campaign.Forthiscampaignperiod,thereturn-on-investmentwas262:1invisitorspendingand 27:1intaxesgeneratedforthecounty.The2022SpringROIishigherthanthatofthe2019and2021Spring Summerstudies. ThisisactuallyamongthehighestROIinthetourismindustryshowcasinganenormously ef昀椀cientandeffectivecampaign.

(SeetheexpandedoverviewintheOverarchingKPIssection.)

• Leveragenewanddevelopingpartnerships:

SCTworkedwithadvertisingpartner–Volta.Thispartnership placesSonomaCountyadvertisingonelectricvehiclecharging stationsthroughoutSouthernCalifornia–akeytargetmarketfor SCT.Thisnotonlyraisedawarenessabouttheregion,butaligned withSCT’scommitmenttosustainableliving.

• ContinueADAworkonwebsite,includingmakingtop10web articlesavailableaudibly.AuditsiteforongoingADA complianceopportunities.

Allpagesonwebsiteareavailableaudiblygivenabrowserbased functionalityforthosewithspecialneeds. Ourbroad-based contentauditinFY22/23addressedADAcompliancespeci昀椀cally withcaptionsforallimagesandotherbestpractices.Global stylingisalsobasedaroundADAcomplianceforfontsize andcolor.

• Createupdatedeventsponsorshipprocesstoreview,vet,andactivateonopportunitiesthroughouttheyear. Communicatenewprocesstoexistingandpotentialeventpartners.

Anupdatedscheduleforapplyingforsponsorshipfundsaswellasanewapplicationwasapprovedbythe boardandintegratedwithpartners.Thiswasthe昀椀rstyearSCTsawacompetitiveenvironmentforits sponsorships. TheapplicationswerevettedbytheMarketingCommitteeandsenttotheBoardfor昀椀nal approval. InFY22-23,thefollowingeventsponsorshipswereprovided:

• SonomaCountyWineMonth

• SonomaCountyBarrelAuction

• HarvestFairAwardsDinner–Oct.2022

• ArtisanCheeseFestival-March2023

• TasteofSonoma-June2023

• IdentifyandbeginintegratingmarketinginitiativesfornewBIApayors.

TheprogramtobringvacationrentalsintotheBIAstalledin2022. Recognizingtheneedtobetter understandthevacationrentalindustryandtheconcernsofbothnon-hostedandhostedproperties,SCT formedtheVacationRentalCommittee. Theaimistobetterunderstandthissegmentandidentifywaysto betterintegrateitintomarketingefforts.

Sonoma County Tourism advertising on Volta charging station at a Whole Foods in Southern California

DestinationStewardship

Overall

• Encourageresponsibletravelbehaviors,elevatingSCT’spartnership withLeaveNoTraceandotherorganizationsthatwillhelp elevatethispriority.

Duringtheyear,SCTpartneredwiththeRegionalParks andLeaveNoTraceonavideoprojectthatshowcases eachoftheSevenPrinciples. Thesevideosareavailable ontheSonomaCounty.com/sustainablewebpage.

• PositionSonomaCountyTourismasanindustryleaderindestinationstewardshipthroughintegrationwith local,nationalandinternationalorganizations.

SCTelevatedtheorganization’sindustrypositionthroughbeingafeaturedspeakeratGreenDestinations InternationalConference,theTravelandTourismResearchAssociation(TTRA)MarketingOutlookForum, theTTRAInternationalConferenceandtheDMAWestEducationSummit.

DevinMcConnellwasmadeSCT’sManagerofSustainabilityandClimate Initiatives. HehasspenttheyearidentifyingopportunitiesforSCTtobebetter integratedintostatewideandnationalorganizations. HeattendedtheGlobal SustainableTourismCouncilannualconferenceandisworkingtoidentifya certi昀椀cationprogramforSonomaCounty.DevinalsositsontheCalTravel SustainabilityCommitteewherehemadesigni昀椀cantcontributionstothe CalTravelSustainabilityandStewardshipToolkitforStatewideDMOs.

SCTalsojoinedtheUSTravelAssociation’sSustainabilityCoalitiontohelp furtherpoliciesandindustrypracticesaroundsustainabletravel.

SCTparticipatedintheSustainableTourismInternational’svideoseriesthat waslaunchedworldwideonWorldTourismDaySept.27,2022.

• FinalizeandsocializeDestinationSustainabilityandResiliencemasterplan,identifyingactionplanfunding, roll-outandintegration.

TheplanwascompletedandlaunchedonMay11,2023.

DeStInAtIoN StEwArDsHiP AnD ReSiLiEnCy MaStEr PlAn MaY 2023 SoNoMa CoUnTy ToUrIsM 24

• ContinuetogrowtheAccreditedHospitalityProfessional(AHP)program,creatingadditionalopportunities forcontinuingeducation.Continuingeducationprogrammingincluded:

• PowerofTourismLunch&Learn–EconomicData

• SocialMediaTraining

• SummerCelebrationNetworkingatHook&Ladder

• WorkforcetrainingwasconductedatAnalyHighSchool

• PetalumaLodgingAssociationfundedscholarshipsforhighschoolstudentstogothroughthe programin2023-24schoolyear.

• ExecutearobustNationalTravelandTourismWeek,includingaStarsoftheIndustryEvent,toraise awarenessoftheimportanceofthetourismindustrytotheresidentsofSonomaCounty.

• StarsoftheIndustrywasheldonMay9with over240inattendance,andmorethan21,000 votescast. Industrysuperstarswereselectedin 11categories:

• Front of the House –BryanBergman,Lo&Behold

• Heart of the HouseSantosPerezDeWile,Fairmont SonomaMissionInn &Spa

• Rising StarHaydenPuryear,LarsonFamilyWines

• Environmental Stewardship / Sustainable Prac琀椀ces – RidgeVineyards

• Customer Experience –BrewstersBeerGarden

• Lodging Property of the Year –LodgeatBodegaBay

• Community EnrichmentTranscendenceTheatreCompany

• Champion of the Industry –DustinValette,Valette/TheMatheson

• Innova琀椀on Award – JVineyardsandWinery

• Accredited Hospitality Professional (AHP) Program Champion – AnalyHighSchool

• Legacy Award – Don&TheraButtaro

• AGoldResolutionwaspresentedattheBoardof Supervisorsmeetinginhonorofthetraveland tourismindustryonMay9.

• TheDestinationSustainabilityandResilience MasterPlanwaspubliclyreleasedata CommunityMixeron May11.

• ASonomaCountyTourismCareseventwasheldatTheHumane SocietyonMay12.

• Throughouttheweekover20businesseswerelitaroundtheCountyinPinotPurple.These businesseswerefeaturedonbothsonomacounty.comandtheSonomaCountyApp.

• Afull-pageadraninthePressDemocratandin2weeklypaperstoshowcasetheeconomicimpact oftourismintheCounty,alongwithafullpageadcongratulatingthewinnersofStarsinthe Industry. Digitaladswerealsorun.

• AccreditedHospitalityProgram

• IncreasethenumberofAccreditedHospitalityProfessionalsfrom128to350.

• EnrolledintheAHPprogramsinceinception:381

• Fullyaccredited:253

• Inprogress:128

• Percentagetogoalasof6/30:67%

• Atleast30partnersactivelyengagedinsupportingcontinuingeducationforAHP.

AsofJune30,21partnersareactivelyengagedinthecontinuingeducationefforts.

• QuarterlyupdatestoonlinemoduleandcurriculumforAHP.

AnRFPwassentforanonlineplatform,buttherenovationoftheSonomaCounty.comwebsitehas putthisonpause.

• Aminimumof10AHPclassestobehostedatpartnersites.

Atyear’send,six(6)classeshavebeenheldatpartnersites.

• Sustainable/ResponsibleTourism

• Identifymeasurementmetricsthatshowthepositiveimpactofshiftingconsumerbehavior.

StaffhasmadecontactwithascientistfromLeaveNoTracetoidentifyameasurementtool. At thispoint,nomeasurementtoolexists.

• Developdynamicvoluntourismpageonsonomacounty.com.

Thepagecontinuestobeupdated,andcurrentlyincludestheseopportunitiesfortravelersto volunteerwhileinthedestination:

• RedwoodEmpireFoodBank

• FarmtoPantry

• SonomaEcologyCenter

• SonomaCountyRegionalParks

Thepagealsoincludeslinkfortravelerstoidentifyadditionalopportunities.

• Developcarbonoffsetincentiveprogram.

Thecarbonoffsetprogramhasbeenaddedto SonomaCounty.com. Theusageisfairlysmall, soSCTisreachingouttopartnerstoidentify opportunitiesforre昀椀nementandexpansion.

SCTalsoincludesthecarbonoffsetcalculator onitsTravelAuthorizationFormforall employeestravelingonbusiness. SCTwillpay forthecarbonoffsetsforeachtrip.

• DoublethenumberofSonomaCountyLeave NoTraceCoalitionpartnersfrom36to72.

Twenty-sixbusinessessignedontobecoming CoalitionpartnersinFY22-23,fallingshort ofourgoal. Wehaveaskedourcollaborators atSonomaCountyRegionalParkstotakean activeroleingettingnewbusinessesonboard withthisinitiativeforFY23-24.

• Onboard20businesses(10coastaland10 riverareabusinesses)toRewardsforRubbish program. GeneratereportnearendofFY measuringprogramsuccess.

Despiteagreatdealofoutreach(phone,email andin-person),wewerenotsuccessfulat gettingbusinessestoadopttheprogram beyondonevisitorcenterandonebusiness.In addition,thevolunteerengagementhasbeen modest.Wewillcontinuetooffertheprogram toanybusinessesinterestedinparticipating, butwillnotprioritizethisspeci昀椀cprogramin thecomingyear.

• Hold3SonomaCountyTourismCareseventsperyear and10AdoptaRoadClean-upevents. Thisgoalhasbeen reached. Duringtheyear,weheldthefollowing:

• SonomaCountyTourismCaresActivities:

• Nov & Dec 2022: DonationDriveforPersonal HygieneProducts:Partneredwith7chambers/ visitorcentersresultingin365lbs.ofproduct donatedtoSonomaCounty’sunhoused population.

• March 2023: NativeGrasslandsPlantingwith ConservationWorks:Plantednativegrasses topreventsoilerosionandassistincarbon sequestration,andmilkweed--animportant foodsourceforthethreatenedmonarch butter昀氀y.

• May 2023: HumaneSocietyofSonoma County:Donatedandbagged418lbs.ofpet foodandrevitalizedthecampus’scanineplay area.

• RoadClean-ups

SonomaCountyTourismhasadoptedroadsineachofthe昀椀vedistricts. DuringFY22-23,tenroadcleanups occurred. Withaparticipationofmorethan70SCTstaffandpartners,103bagsofgarbagewereremoved fromtheroads.

Adopted Road Clean-Up Date(s)

AirportBlvd.(SantaRosa) July22,2022

PetalumaHillRoad(SantaRosa) Aug.31,2022

ArmstrongWoodsRoad(Guerneville) Oct.20,2022

ArnoldDrive(GlenEllen) Nov.18,2022

MainSt./PetalumaHillRoad(Penngrove) Dec.2,2022

AirportBlvd.(SantaRosa) Feb.21,2023

PetalumaHillRoad(SantaRosa)* April7,2023

ArmstrongWoodsRoad(Guerneville) April13,2023

ArnoldDrive(GlenEllen) May25,2023

MainSt./PetalumaHillRoad(Penngrove)* June26,2023

*In partnership with the California Highway Adoption Co.

• HospitalityCollaboratives/Mixers

AsecondCoffee+Collaborationwasheldwithelectedof昀椀cialswiththetopicsofdiscussionbeingthosethey determinedviaaninformalpoll.Theindustryperformance,mostespeciallyTransientOccupancyTax(TOT) collectionsandforecastwasthetopdiscussionpoint.

Thiswillcontinuetobeasemi-annualevent.

OrganizationalSustainability

Overall

• Developandintegratelong-termfunding.

ThecentralinitiativetoexpandtheBIAwassuspendedinOctober2022. Thisinitiativemayberelaunched onceahigherlevelofcommunicationsandconnectivityisachievedwiththevacationrentalcommunityas wellascurrentBIAparticipants.

• Effectivelymanagecurrentandadditionalfundingwithinafullytransparent昀椀nancialenvironment.

FinancialscontinuetobeprovidedtotheFinance&LegalCommitteeandtheBoardaswellasavailabletoany partnerorrequester.

• Createahigh-performanceenvironmentfoundedinemployeeengagement,wellnessandteamdevelopment.

TheSCTteamisdriventowardhigh-performance.WhiletheMarketingandBusinessDevelopmentteams havevisible,measurablemetricsforsuccessandcaneasilytrackperformance,otherteamshavemetrics thatshowcasethetremendousworkbeingdoneintheareasofresearch,sustainability,community engagementandoperations.

• Continuetoseeahighlevelofemployeeengagementscores.

SCTconductedtwoemployeeengagementsurveys–afullsurveyanda“lite”surveytosetabenchmark andthentodetermineimprovementin“need”areas. Scoresimprovedinallareas,butmostespeciallywithin the“engagement”section.ThisisatestamenttoacommitmentonthepartoftheSCTexecutiveteamandan incrediblegroupofprofessionalscommittedtoservingitspartnersandtheCountyatthehighestpossible level.

• EnsureteaminclusionandstrongcommitmenttoDiversity,EquityandInclusion(DEI).

TheSCTexecutiveteamhascompletedtheDestinationsInternationalEDIcourse. TheSCTteamisengaged incommunityinitiativesaroundDEIandwillcontinuetoelevatethisinitiativethroughouttheyear.

• ElevatetheperceptionofSCTamongkeystakeholdersandpartnersasmeasuredthroughapartner engagementsurvey.

PartnerengagementsurveywasconductedinJuneandcompletedinAugust. Asnapshotofresultsis includedintheOrganizationalKPIsatthebeginningofthereport.

• IdentifywaystoincreaseengagementoftheSCTBoardandCommittees.

SCThasengagedTomFloydofFlouracityindevelopingboarddevelopmentprogramming. TheBoard completedtheDiSCassessmentallowingpeopletobetterunderstandthepersonalitiesontheboardand potentialapproachestoinitiativesbasedonthetraitsofthatpersonalitytype.

Duringitsannualboardretreat,SCTaskedboardmembershowtheywouldliketoevolvethemonthly meetings–bothinformatandcontent–toencouragerobustdiscussion. Thosechangeshavebeen integratedintotheagendaandapproachtothemeetings

• Continuetoupdateandeducatetheteamandallinternalaudiencesonthecrisisplan.

ThankfullySCTdidnotneedtomobilizetheteamagainstamajorcrisis. Theplanwasupdatedandreadyto bedeployedduringthewintermonthswiththeexcessiverainfall,butitdidnotreachthecrisisstage.

Finance and Operations

• Finance

• Updateaccountingpoliciesandproceduresmanual.

Thiswasnotcompletedduringthisyear. ThiswillberevisitedinFY24-25.

• Developupdatedtrackingmethodandforecastmodelforrevenuetoachieve5%forecastaccuracy forrevenue.

DuetodramaticincreasesintheTOTrevenueseenduringthe昀椀rsthalfoftheyearandtimingof receivingtheinformationfromtheCounty,SCThadaverydif昀椀culttimeforecastingrevenuefor theyear. Whiletherevenuewasmostlyaboveforecast,thewintermonthsandimpactof thecopiousprecipitationswungthependulumtheotherwayandintoanegativerange. Atyear’s end,industryperformanceinoccupancy,AverageDailyRate(ADR)andRevenueperAvailable Room(REVPAR)waslaggingbehindthestrong2022performance.

• Ensurereservesamountiskeptatathree-monthoperatingexpenseslevel($2.1million).

Atyear’send,reservesareatathree-monthoperatinglevel. FY22-23hasbeenavolatileyear,but attheclose,amorestabilized昀椀nancialenvironmentallowedSCTtoforecastandallocatefundsat amorenormalizedlevel. Thisallowedforreservefundstobeallocatedassuch.

• Findnewwaystosafelymaximizeinvestmentsforreserves.

TheincreasesbytheFederalReserveintheinterestratehasgiventhetraditionallyconservative investmentportfolionewstrength.Itwasdeterminedthatariskierapproachwouldnotbeneeded atthispoint.

• Administration/Operations

• Ensureboardandcommitteeshavefullparticipation.

SCTworkstoensuretheBoardandallcommitteeshaveafullcomplementofmembers. TheBoard continuestohaveafewopenseats,andSCTisworkingto昀椀llthesepositions.

• Developnewassettrackingsystemforallnewequipmentandhardware.

AnewinventorytrackingsystemwasintegratedinJunehelpingtheteambettertrackall equipmentandpremiumitems.

• UpdateEmployeeHandbooktoencompassevolutionofworkenvironment,laborlawsandensure inclusionofDEIimperatives.

TheEmployeeHandbookstillneedtobeupdated. Componentsofthehandbookandassociated policies,includingtheTravelandEntertainmentpolicywereupdatedinFY22-23.

• DataSystems

• Conductfullauditofalllistingsonthedatabaseandensureinformationisupdatedina timelymanner.

Afullauditoflistingswascompleted,includingresponsivetiminginupdatinginformation requestedbypartners.

• Createtutorialforpartnerstoensureadministrationofthedatabaseiseasilyunderstood.

DistributedHospitalityHubtrainingresourcestopartners,conductedone-on-onepartner trainings,had682accountslogintotheHospitalityHub(a5%increasefromFY21-22).

• Workwithexistingplatformsandidentifynewtechnologythatstreamlinesandautomatesof昀椀ce processessuchasexpensereports,onlineinquiriesandSimpleviewreportingofactivities.

Createdanewsystemfortrackingmedia/PRpitchesandarticles,travelauthorizations,and inventory.Integratednewtechnologyfordigitalassetmanagement,calendarofevents management,andarticleimporting.

Research

• Integratequantitativeandqualitativedatatoprovideaddedinsightandcontextintovisitor昀氀ows.

Morethanever,SCTisincludingavarietyofmodelsintoitsresearchfoundationtoensureinformationis timely,integratesbothquantitativeandquantitativeinsightsandhastheoutputmostsalienttopartners. Researchisderivedfrom:

• DeanRunyanannualeconomicimpactsurvey

• LongwoodsInternationalannualvisitorsurvey

• LongwoodsInternationalmarketingROIsurvey

• STRreports

• TourismEconomicsSymphonyDashboard

• AirDnA–tracksvacationrentalperformance

• NEARdata–trackspeople’smovementwithinthe destinationusingGPStracking

• TravelClick–providespacereportsanddestinationwidebookingforecasts

• UsetheoutcomesfromtheDestinationStewardshipand ResilienceMasterPlan.

Master Plan Five Imperatives

1. BuildaNaturallyResilient Destination

2. StrengthentheHealthof theRegion’sEconomy

3. ElevatetheResident QualityofLife

4. EnhancetheBreadthof ProductsandExperiences

5. AcknowledgeandAdvance SonomaCounty’sCulture andHeritage

ThePlanwascompletedinMay2023. SomeofthekeyoutcomeshavebeenintegratedintotheFY24 25strategicplanincludingdevelopingcompellingexperiences,ensuringaccessibilityandaddressingtheneed foraconventioncenter. Eachoftheinitiativeshasbeenincludedintheplanaspossiblefortheupcomingtwo yeartimeframe.

• Identityqualitativemethodologytomeasuresustainabletravelbehaviors.

Thiscontinuestobeachallengingpieceofdatatosourceandidentify. SCThasnotyetintegratedthistypeof research.NotethatadatascientistfromLeaveNoTracehasbeenengagedforthiswork.

• EvaluateperformanceoftheSymphony(TourismEconomics)dashboardandopportunitiestointegrateinto marketingcampaignsandotherresearchplatforms.

SCTdidevaluatethisproductandrevieweditagainstothersimilarproducts. Wedeterminedtocontinueto workwithSymphonyandhavesignedathree-yearagreementforcontinuedandelevatedservices.

Thisdatahasbeenintegratedintoallprogrammingasappropriate. Infact,whentheMarketingCommittee wasdeterminingeventsponsorshipallocations,theyconsultedtheTravelClickdatatodetermineiftheevent occurredduringa“needperiod.”

Themarketingandsalesteamsusethisdatatoplancampaignsandoutreach.

• Launchandcompletesurveyofvisitorcenterstodetermineusage,visitorexperience,needsandopportunities.

ThissurveywasconductedbyDestinationAnalystsduringtheendof2022andthe昀椀rsthalfof2023. The resultsweredeliveredinAugust2023.

• TrackfundingmodelsforotherCaliforniaDMOsandidentifychangestotheirassessmentsandtaxbase.

Completed. SCTreviewedfundingmodelsforourdestinationsinourcompsetincluding:

• VisitNapaValley

• VisitSantaBarbara

• VisitSLO

• VisitPalmSprings

TheinformationwasusedtodeterminehowSCTcouldstructureitsfundingincreaseinitiative.

APPENDIX A: ANNUAL INDUSTRY PERFORMANCE

Summary

TheeconomicimpactestimatesassociatedwithtravelerspendinginSonomaCountyweremeasuredusingthe RegionalTravelImpactModel(RTIM)developedbyDeanRunyanAssociatesandarecomparabletothosefoundinthe 2022pCaliforniaState,Regional&CountyImpactsreportpreparedforVisitCalifornia.FurtherinformationfromVisit California:https://industry.visitcalifornia.com/research/economic-impact.-

TravelrelatedspendinginSonomaCountysawatremendousgainin2022;the$2.29billiongeneratedbyindirectand directvisitorspendingsurpassed2021levelsby18.7%andpre-pandemic2019levelsby2.7%.Infact,SonomaCounty wasoneofonly20ofthestate’s58countiestosurpasspre-pandemicvisitorspending,andoneofonlytwocounties (besidesMarinCounty)intheNorthBayRegiontodoso.

SonomaCountyDirectTravelImpacts,2018-2022 Year Spending Earnings Employment LocalTaxes StateTaxes TotalTaxes ($Millions) ($Millions) (Jobs) ($Millions) ($Millions) ($Millions) Direct&Indirect 2018 2,200 815 22,380 108 91 199 2019 2,237 863 22,360 110 95 205 2020 1,250 653 16,290 74 61 135 2021 1,938 763 17,610 115 80 195 2022 2,299 931 21,150 130 93 223 2021-2022 +18.7% +22% +20.1% +13% +16.3% +14.4% Change

2022EconomicImpactofTourismReport

(Dean Runyan Associates, 2022)

Spendinginthehotel,motelandshort-termrentalsegmentincreasedby11%over2021levelscomprisinga43% shareofovernighttrips,andspendingoncampingstaysclassi昀椀edintheotherovernightcategoryinthetablebelow, increasedby26%over2021levels.Thefollowingtableprovidestotalandaveragespendingestimatesforovernight travelerstoSonomaCountyin2022.

Average Travel Spending by Overnight Visitors in Sonoma County, 2022*

*Thespending昀椀guresshownrepresentexpendituresonalltravelrelatedcommoditiesinthedestinationforeach categoryofovernightvisitor.STVR:Short-termvacationrental.

SonomaCountyDirectTravelImpacts:Cities,2022 City Spending YOY Earnings Employment LocalTaxes StateTaxesTotalTaxes ($Millions) Change ($Millions) (Jobs) ($Millions) ($Millions) ($Millions) Direct&Indirect Cloverdale 14.3 +37% 5.8 131 0.8 0.6 1.4 Healdsburg 239.5 +6% 97.0 2,203 13.6 9.7 23.2 Petaluma 174.6 +36% 70.7 1,606 9.9 7.0 16.9 RohnertPark 160.0 +15% 64.8 1,472 9.1 6.5 15.5 SantaRosa 419.7 +33% 170.1 3,861 23.7 16.9 40.7 Sebastopol 27.3 +31% 11.0 251 1.5 1.1 2.6 Sonoma 219.5 +57% 88.9 2,019 12.4 8.9 21.3 Unincorporated 961.6 +5% 389.6 8,846 54.5 38.8 93.2 Windsor 82.5 +24% 33.4 759 4.7 3.3 8.0 Total 2,299 +18% 931.5 21,148 130.1 92.8 222.9 SonomaCounty

AverageTravelSpendingbyOvernightVisitorsinSonomaCounty,2022* Visitor TravelParty TravelParty Person Person Lengthof PartySize Spending PerDay PerTrip PerDay PerTrip Stay ($Millions) Hotel,Motel,STVR1,239 $743 $2,026 $297 $805 2.7 2.5 PrivateHome 208 $110 $385 $52 $183 3.5 2.1 OtherOvernight 211 $209 $643 $79 $240 3.1 2.7 AllOvernight 1,659 $362 $1,119 $153 $466 3.1 2.4

Notes:

• Totalsmaynotaddexactlyduetorounding.

• Retailincludesgasoline.

• Localtaxreceiptsincludetransientoccupancytax,salestaxandpassengerfacilitychargespaidby visitors,andpropertytaxpaymentsandsalestaxpaymentsattributabletothetravelindustryincomeof employeesandbusinesses.

Statetaxreceiptsinclude,salestaxandmotorfueltaxpaymentspaidbyvisitors,andincometaxpaymentsandsales taxpaymentsattributabletothetravelindustryincomeofemployeesandbusinesses.

VisitorSpendingbyTypeofCommodityPurchased,2018-2022($Millions) 2018 2019 2020 2021 2022 Accommodations $510.2 $504.7 $289.9 $576.0 $656.6 FoodService $562.9 $580.2 $355.5 $491.6 $567.4 FoodStores $67.5 $69.1 $38.6 $77.1 $83.5 LocalTransport/Gas $178.9 $183.7 $81.5 $141.7 $173.1 Arts/Entertainment/Recreation $352.9 $354.4 $194.6 $271.4 $305.9 RetailSales $339.7 $348.2 $187.1 $264.6 $318.8 VisitorAirTransport $12.5 $14.1 $5.3 $12.0 $21.5 AllDestinationSpending $2,024 $2,054 $1,161 $1,834 $2,127

5.5

APPENDIX B Sonoma

(Longwoods International)

Trip Planning Informa@on Sources

OnlinetravelagenciesHotel/ResortAdvicefromRelatives/friendsTravelagent/companySocialmediaAirline/CommercialcarrierTravelguide/otherbooksTVprogram/TVadvertisingDestinationwebsite

VISITOR

APPENDIX B

County 2022 Domes7c Visitor Proﬁle

visitors to Sonoma County Overall Purpose of Leisure Trip 10.3 Million 4.8 million Overnight visitors 5.5 million Day visitors Average Size of Overnight Travel Party Average Length of Stay Season of Overnight Trip

Feeder States for Overnight Trips for Overnight Trips Sightseeing 25% Winery/Brewery/Dis4llery Tour 37% Shopping 26% A>ending celebra4on 23% Landmark/historic site 23% Bar/nightclub 16% Beach/waterfront 16% Civil rights/African American heritage sights/experiences 16% Hiking/backpacking 17% 18% 0 5 10 15 20 25

APPENDIX B: 2022 DOMESTIC

PROFILE

Sonoma

Total

Top

Percent

County 2022 Domes7c Visitor Proﬁle

visitors to Sonoma County Overall Purpose of Leisure Trip 4.8 million Overnight visitors 5.5 million Day visitors Average Size of Overnight Travel Party Visiting Friends/Relativ es Touring 19% Outdoor s 10% Special event 8% City trip 7% Casino 5% Resort 3% Theme park Average Length of Stay Season of Overnight Trip

Feeder States for Overnight Trips Top 10 for Overnight Trips Sightseeing 25% Winery/Brewery/Dis4llery Tour 37% Shopping 26% A>ending celebra4on 23% Landmark/historic site 23% Bar/nightclub 16% Beach/waterfront 16% Civil rights/African American heritage sights/experiences 16% Hiking/backpacking 17% 18% 0 5 10 15 20 25

Trip Planning Informa@on Sources APPENDIX

Sonoma

Total

Top

Percent

Sonoma County 2022 Domes7c Visitor Proﬁle Total visitors to Sonoma County Overall Purpose of Leisure Trip 3.2 people 4.8 million Overnight visitors 5.5 million Day visitors Average Size of Overnight Travel Party Average Length of Stay Season of Overnight Trip

Feeder States for Overnight Trips Top 10 Ac@vi@es and Experiences for Overnight Trips Sightseeing 25% Winery/Brewery/Dis4llery Tour 37% Shopping 26% A>ending celebra4on 23% Landmark/historic site 23% Bar/nightclub 16% Beach/waterfront 16% Civil rights/African American heritage sights/experiences 16% Hiking/backpacking 17% Museum 18% 0 5 10 15 20 25

Trip Planning Informa@on Sources APPENDIX B

Top

Percent

Sonoma County 2022 Domes7c

Total visitors to Sonoma County Overall Purpose of Leisure Trip 2.1 4.8 million Overnight visitors 5.5 million Day visitors Average Size of Overnight Travel Party Average Length of Stay Season of Overnight Trip Top Feeder States for Overnight Trips Top 10 Ac@vi@es and Experiences for Overnight Trips Sightseeing 25% Winery/Brewery/Dis4llery Tour 37% Shopping 26% A>ending celebra4on 23% Landmark/historic site 23% Bar/nightclub 16% Beach/waterfront 16% Civil rights/African American heritage sights/experiences 16% Hiking/backpacking 17% Museum 18% 0 5 10 15 20 25

APPENDIX B

Visitor Proﬁle

Percent

County 2022 Domes7c Visitor Proﬁle

visitors to Sonoma County Overall Purpose of Leisure Trip 2.1 nights 4.8 million Overnight visitors 5.5 million Day visitors Average Size of Overnight Travel Party Average Length of Stay Season of Overnight Trip

Trip Planning Informa@on Sources APPENDIX B Sonoma

Total

Top

Percent

Trip Planning Informa@on Sources

County 2022 Domes7c Visitor Proﬁle Total visitors to Sonoma County Overall Purpose of Leisure Trip nights 4.8 million Overnight visitors 5.5 million Day visitors Average Size of Overnight Travel Party Average Length of Stay Season of Overnight Trip Top Feeder States for Overnight Trips Top 10 Ac@vi@es and Experiences for Overnight Trips Sightseeing 25% Winery/Brewery/Dis4llery Tour 37% Shopping 26% A>ending celebra4on 23% Landmark/historic site 23% Bar/nightclub 16% Beach/waterfront 16% Civil rights/African American heritage sights/experiences 16% Hiking/backpacking 17% Museum 18% 0 5 10 15 20 25

APPENDIX B Sonoma

Percent

Trip Planning Informa@on Sources

visitors to Sonoma County

Purpose

4.8 million Overnight visitors

APPENDIX B Sonoma County 2022 Domes7c Visitor Proﬁle Total

Overall

of Leisure Trip

million Day visitors Average Size of Overnight Travel Party Average Length of Stay Season of Overnight Trip

Top

Percent

2022 Domes7c Visitor Proﬁle Total visitors to Sonoma County Overall Purpose of Leisure Trip 4.8 million Overnight visitors 5.5 million Day visitors Average Size of Overnight Travel Party Average Length of Stay Season of Overnight Trip

Percent

County

Top

Trip Planning Informa@on Sources

County 2022 Domes7c Visitor Proﬁle Total visitors to Sonoma County Overall Purpose of Leisure Trip 4.8 million Overnight visitors 5.5 million Day visitors Average Size of Overnight Travel Party Average Length of Stay Season of Overnight Trip

APPENDIX B Sonoma

Top

Percent

Sources: Longwoods InternaEonal

Demographic Proﬁle of Overnight Visitors

18-2425-3435-4445-5455-6465+

Household Income

Business Travel Interna@onal Visitors

Percent of Overnight Visita@on related to Business Ac@vi@es

Top Interna@onal Origin Markets

Business Visitor Spending

Business travelers spend twice as much as leisure travelers on a per transac<on basis.

Sources:

Business travelers spend twice as much as leisure travelers on a per transac<on basis. Sources:

Business travelers spend twice as much as leisure travelers on a per transac<on basis.

Top Spending Categories

Top three categories for business visitor spending in Sonoma County are: Hotels and Lodging; Entertainment and Retail

31% 2x 29%

Top three categories for business visitor spending in Sonoma County are: Hotels and Lodging; Entertainment and Retail

Sources: Longwoods InternaEonal, Visa DesEnaEon Insights, Near

Canada Mexico United Kingdom

Canada

Canada Mexico United Kingdom

Canada

Mexico United Kingdom

Other top interna<onal origin markets: Germany, Australia, France, India

Other top interna<onal origin markets: Germany, Australia, France, India Average

Other top interna<onal origin markets: Germany, Australia, France, India

Average length of stay Overnight visitors Repeat visitors

of stay Overnight visitors Repeat visitors

Average length of stay

Average length of stay Overnight visitors Repeat visitors

Overnight visitors Repeat visitors

Age Female 33%

Post Graduate 32% College Graduate 39% Some College 14% High School or less 14%

Educa@on

Longwoods InternaEonal, Visa DesEnaEon Insights, Near

Age Male 67% Female 33% Educa@on Post Graduate 32% College Graduate 39% Some College 14% High School or less 14% 27% 16% 17% 27% 13% < $49.9K $50$74.9K $75$99.9K $100$149.9K $150K

Male 67% Female 33% Educa@on Post Graduate 32% College Graduate 39% Some College 14% High School or less 14%

Age

18-2425-3435-4445-5455-6465+

Age 67% Female 33%

Post Graduate 32% College Graduate 39% Some College 14% High School or less 14%

4.3 days 87%

Demographic Proﬁle of Overnight Visitors

Educa@on

Household Income

DesEnaEon Insights,

Longwoods InternaEonal, Visa

Near

9% 29%25% 15% 10%11% Sonoma County 18-24 25-34 35-44 45-54 55-64 65+ Demographic Proﬁle of Overnight Visitors Age Male 67% Female 33% Gender Educa@on Post Graduate 32% College Graduate 39% Some College 14% High School or less 14%

length

Household Income

APPENDIX C

SONOMA COUNTY TOURISM BOARD OF

SONOMA COUNTY TOURISM BOARD OF DIRECTORS, STAFF

BIA Lodging Directors

*Edward Roe, Chair Fairmont Sonoma Mission Inn

* Brian Marchi, DoubleTree by Hilton Sonoma Wine Country

*Keo Hornbostel, Treasurer Safari West

* Bert Rangel, Secretary, River’s End Resort

Joe Bartolomei, Vice Chair Farmhouse Inn

Thera Buttaro, Bodega Bay & Beyond

Monica Hubert, Hyatt Regency Sonoma Wine Country

Crista Luedtke, Boon Hotel + Spa

Kirk Lok, Quality Inn Petaluma

Brandon Mrkvicka, Hampton Inn & Suites Windsor

Tony Pace, Hotel E, Art House

Board of Supervisors Appointees

District1: Tim Zahner, Sonoma Valley Visitors Bureau

District2: Jennifer Buffo, Pure Luxury Transportation

District3: Scott Alonso, City of Santa Rosa

District4: Caroline Shaw, EJ Gallo

District5: Kirstyne Lang, KAL Consulting, LLC

District5: Margaret Grahame, Timber Cove Resort

Ex-Of昀椀cio Members

Bill Arnone, Legal Counsel

Christina Rivera, County Administrator

McCall Miller, Alternate, County Administrator’s Of昀椀ce

Ethan Brown, Interim Executive Director, Sonoma County Economic Development Board

Claudia Vecchio, CEO, Sonoma County Tourism

39 *BoardOf昀椀cers

Sonoma County Tourism Staff

A.J. Ruiz, Marketing & PR Coordinator

Birgitt Vaughan, Director of Public Relations

Chris Vomvolakis, Sr. Manager, Consumer Public Relations

Claudia Vecchio, President/CEO

Conrad Braganza, Sr. Manager, Research

Delayna Fitzgerald, Communications Manager

Devin McConnell, Sustainability & Climate Initiatives Manager

Emma Schmitz, Data & Systems Specialist

Frank Filice, Director of Brand Marketing

India King, Business Development Coordinator

Morgan Miles, Digital Marketing Manager

Jamie Trump, Content & Social Media Manager

Jessica Quigley, Executive Assistant

Jonny Westom, Vice President, Business Development

Kate Davis, Project & Design Specialist

Kelly Bass Seibel, Vice President, Community Engagement

Kurt Shaver, Destination Sales Manager

Lisa Coats, Accounting Assistant

Lori Angstadt, Vice President Finance & Operations

Percy Stevens, Director Travel Trade

Stacey Bruckert, Director Destination Sales

Todd O’Leary, Vice President, Marketing & Communications

Tracy Koch, Administrative Program Manager

AsanorganizationthatresidesinSonomaCounty,SonomaCountyTourismalignswiththeCountyofSonomain recognizingthatweareontheancestrallandsoftheCoastMiwok,PomoandWappowhoaretheoriginalcaretakers ofthisarea. WerespectfullyacknowledgetheIndigenouspeopleswhohavebeenstewardingandmaintainingtheir relationshipsonthislandasknowledgekeepersformillennia.

LAND ACKNOWLEDGEMENT