Highlights from the 2023-2024 Fiscal Year
Public Relations
The New York Times, Travel + Leisure and Good Housekeeping wrote stories about Modesto! New Partner Madden Media Public Relations, has placed Modesto on the global travel map Page 11
Modesto in Tokyo
In May 2024 Visit Modesto hosted over 20 travel buyers and writers in Tokyo with a live Sciabica Olive Oil tasting and wines from Gallo served at lunch Page 5
In 2023 Modesto was named America’s #1 Hidden Gem Live Music City. Visit Modesto’s role in the regional arts, entertainment and business ecosystem helped make that possble Pages 6-7
From the CEO
Community Driven Marketing through Challenging Times by
Todd Aaronson
Modesto has maintained its position as a tourism leader in the Central Valley, despite a recent downturn in regional travel
While occupancy rates and demand have decreased slightly overall, Modesto's room revenue has remained above prepandemic levels, demonstrating the city's strong appeal to visitors.
In the 23-24 fiscal year, Visit Modesto focused marketing efforts on five key pillars: Almond Blossom Cruise, MoFresh, Graffiti Summer, MoPink, and MoCheer This targeted approach allowed us to tailor messaging to specific traveler segments, maximizing impact on a limited budget
With the generous support of ARPA funds from the City of Modesto, Visit Modesto expanded community programming, launching Modesto GarageFest and partnering with the Stanislaus Arts Council on ArtWalk. These initiatives not only enriched the local experience but also helped to drive day trip and local demand, thus.
Looking ahead, Visit Modesto will prioritize attracting drive market travelers, focusing on our established destination pillars and developing new strategies to boost visitation during shoulder seasons, youth sports events, and international travel
Our recent collaboration with Modesto Sister Cities and Visit California's Tokyo office has revealed a strong demand for Northern California itineraries among inbound tour operators. This insight will inform our future marketing campaigns and outreach efforts to Japan, Great Britain/UK, Northern Europe, Canada, and Mexico.
At the same time, the Visit Modesto team is taking a critical look at how California, the Central Valley and Modesto are marketed Our goal is to highlight the unique appeal of Modesto as a "different California " The region's rich agricultural heritage and vibrant culinary scene offer a distinctive experience that sets us apart from other popular destinations. Yet, we want to ensure that our marketing appeals across cultural differences. We will be focused, the next several months, on creating and testing messaging for diverse audiences and promoting ‘The other California’ . While the current market conditions present challenges, Visit Modesto remains dedicated to driving results through innovation, data, and talent – both our team and our partners By leveraging data-driven decision-making and collaborating with our community partners, we are confident in our ability to continue attracting visitors and contributing to the economic vitality of our region.
#1 Hidden Gem
What is the MTMD?
Developed by Visit Modesto, Inc and Modesto lodging businesses, the Modesto Tourism Marketing District (MTMD) is an assessment district proposed to continue to provide specific benefits to payors, by funding marketing and sales promotion efforts for assessed businesses. This approach has been used successfully in other destination areas throughout the country to provide the benefit of additional room night sales directly to payors The MTMD was created in 2019 for a four (4) year and eleven (11) month term. In June of 2024, Visit Modesto and the lodging businesses renewed the MTMD for an additional ten (10) year term. The current assessment rate is 1% of room rental revenue (hotel room costs) and paid for by the occupant or payee of the hotel room These fees are no burden on local residents nor the City of Modesto Fees are collected by the City of Modesto, for a fee, and paid to Visit Modesto as the management association for the MTMD.
Fiscal Responsibility
Visit Modesto just completed a full financial audit for 2023 and full AUP audit from 2023 to July 2019 by Noren, Nording, and Associates LLC We are pleased to report these findings from those procedures;
There were no difficult or contentious matters noted during the audit
We did not identify any alternative accounting policies that would have been more appropriate
We did not identify any significant accounting policies in controversial or emerging areas
There were no significant or unusual transactions
We did not identify any financial statement disclosures that are particularly significant, sensitive or require significant judgments, that we believe should be specifically drawn to your attention
There was no going concern risk identifed
No instances of non-compliance with laws or regulations
No instannces of fraud identified
There were no significant related parties identified
Purpose
The specific purposes for which the Visit Modesto operates are:
(1) to attract visitors by promoting and marketing Modesto as an attractive destination;
(2) to provide coordination and leadership for the community, residents and visitors on matters relating to visitor activity and tourism;
(3) to gather community information designed to convey to opinion leaders and the public at large the status and value of the visitor industry; and
(4) to work with local governmental agencies, private enterprises, and other interested parties in developing suitable financing plans for the Corporation, and to implement those plans
Who We Are
MISSION
To provide Modesto visitors, residents, and tourism industry partners in the region with valuable tools and inspiration to create positive and memorable experiences
CREDO
Visit Modesto helps create fond memories, valuable experiences and warm sentiments for visitors and residents alike.
Guiding Principles
As the official Destination Marketing Organization (DMO) for the City of Modesto, Visit Modesto provides tourism services, destination programming, and tourism marketing outreach for Modesto and the entire Stanislaus County region
Visit Modesto FY 2023-2024 Profit & Loss
*Comments
Approved Budget of ARPA funding was $293,010 based upon ARPA Grant Reserves not actual Revenue Labor Budget did not include ARPA Labor Expenses for Welcome Center StaffActual Labor w/o ARPA = ($14,223) under budget Audit Expenses, not budgeted, included in Business Services = $27,000 MTMD Renewal Overage, due to City of Modesto delays, included in Miscellaneous = $15,000 October 2023-24 Board Approval for additional reserves not included in budget = $52,000 TOTAL Unbudgeted Expenses = $108,223 versus budget variance noted above of $63,154 Budget Variance ACTUAL = $108,223 - $52,000 = ($45,079) on Revenue Shortfall of ($63,519)
Strategic Plan; 2024-2030 Revenue Growth Opportunities
In June of 2023, the Visit Modesto team rolled out a 3 Year Strategic Plan The plan included a SWOT Analysis for Modesto (from a tourism perspective), a clear set of Key Performance Indicators, a variety of data about our past customer profile and future targeted customer profile and a Market Analysis. Most importantly, this plan clearly outlines the key areas for revenue and occupancy growth in Modesto; Youth Sports and Tour & Travel Operators
Modesto’s unique central location with access to a variety of amenities, be they local or National Parks, at an affordable price lend to significant revenue opportunities in tourism. The greatest challenge to achieving the goals below will be community coordination and recognition, as well as assistance, from governmental agencies. The goals below have been created starting in 2026 allowing a full year of Visit Modesto providing leadership to City Staff and community partners to build plans that will allow the entire city to benefit from these market segments
Youth Sports Tour & Travel
The Youth Sports Travel Marketing in the United States is expected to surpass $70B per year total revenue by 2027 Modesto has facilities, lodging, dining, varieties of local assets from soccer fields to gymnasiums to auditoriums Yet, Visit Modesto has been unable to coordinate collective cooperation from the asset partners to market these facilities to the national market. This chart outlines the impact a collective effort would have on occupancy growth based upon adding just a few new tournaments and events per year
The Pandemic halted international tour & travel (group tours) business completely Tours from Japan have started to recover, tours from China are only beginning to recover and European tours are well below pre-Pandemic levels California does not expect this travel segment to recover fully before 2030. After meeting with tour operators in Japan this past May and working with the Visit California offices in Japan, Great Britain and China the ‘ new experiences of California’ will be in high demand as these markets recover. The strong dollar does not help, yet gives the Visit Modesto team a chance to build programs and marketing communications while building relationships to grow this segment locally This chart outlines the impact a well executed plan would have as the Tour & Travel market segments recover for inbound travel a collective effort would have
The impact of the pandemic has led to decreased business travel and group/meetings travel. By focusing on these two specific segments the team at Visit Modesto feels confident in being able to grow revenue for lodging partners, retail partners, community partners and the City of Modesto through tax income
Combined Youth Sports + Tour & Travel Revenue Growth Potential Through 2030
Visit Modesto FY 2023-2024 Sales & Marketing Results
Visit Modesto FY 2023-2024 Sales & Marketing Results
Advertising Results
Visit Modesto: Incredible Economic Impact at No Cost to Residents
Visit Modesto is considered a Destination Marketing Organization (DMO) DMO’s act like a city's cheerleader, promoting tourism, arts, entertainment, shopping and local businesses. Visit Modesto creates marketing campaigns, organizes seasonal promotions, and works with partners throughout the community to attract visitors.
DMOs are considered a city’s champion and head cheerleader They don't cost taxpayers anything They're funded by fees and taxes collected from hotel guests Tourism in Stanislaus County involves over 6,700 workers and the Visit Modesto team considers those employees as the core community we support
Modesto Tourism Pillars
DMOs are funded by fees collected from hotel guests, known as occupancy taxes, ensuring they don't burden taxpayers. At Visit Modesto, we use these funds to create, market and support programs like the Almond Blossom Cruise, MoFresh – the region’s agricultural tourism program, Garage Fest, Graffiti Summer, MoPink and MoCheer during the holidays each year
The team at Visit Modesto understands that tourism is a powerful economic driver Through support of a wide range of businesses, from restaurants and attractions to entertainment venues, sports facilities, and retail shops we drive interest for visitors to the region to specifically stay, and play, in Modesto. When visitors come to town, they spend money, creating jobs and generating revenue for the local government
Governments play a crucial role in supporting tourism By investing in infrastructure, supporting the arts, sponsoring tourism programs, and creating a welcoming environment, they can help DMOs attract more visitors and boost the local economy. A thriving tourism industry benefits everyone in the community.
Visit Modesto’s programs and initiatives support all nine cities in the county and business throughout the region We collaborate with businesses in agriculture, manufacturing, healthcare, and more, helping to showcase the diverse offerings of Stanislaus County.
Our programs and initiatives support all nine cities in the county, from Modesto to Turlock and beyond We collaborate with businesses in agriculture, manufacturing, healthcare, and more, helping to showcase the diverse offerings of Stanislaus County.
Visit Modesto is committed to creating a vibrant and welcoming community for everyone. Join us in promoting tourism and helping Modesto, as well as Stanislaus County, thrive
Public Relations Results - Visit Modesto, Inc.
848.3M
Impressions
$3.99M
Advertising Value
In 2023, Visit Modesto contracted Madden Media to assist with tourism marketing and public relations. The results have, literally, generated hundreds of millions of views of articles about ‘visiting’ Modesto. The New York Times, Travel+Leisure, Thrillist and Good Housekeeping all ran features that highlighted Modesto’s Almond Blossom Cruise, which was created and managed by Visit Modesto. Between Feburary and March of 2024 alone, visitation to the area was over 100,000 tourists. They took pictures in orchards and shared them on Instagram, TikTok and Facebook generating even more ‘views’ of what makes Modesto great.
VISIT MODESTO LEADERSHIP
EXECUTIVE COMMITTEE
Chris Murphy, Chair
Pervez Khan, Vice Chair
Bert Tabrizi, Treasurer
Angela Cangiamilla, Secretary
Jessica Hill City of Modesto Advisor (NV)
Todd Aaronson, CEO (NV)
GENERAL BOARD MEMBERS
Rodney Cordova
Chad Hilligus
Helda Paules
Damon Robbins (NV) = non-voting member
VISIT MODESTO STAFF
Todd Aaronson, CEO
Anthony Silva, Manager of Creative Services
Elyse Christiansen, Marketing Manager
Kate Allen, Activities Specialist
Calista Ortega, Visitor Services Agent
Bob Searls, Visitor Services Agent
