Monterey County CVB Annual Report FY 2019-2020

FY2019-20

Annual Report

Bernardus Winery, Carmel Valley

SeeMonterey.com Big Sur | Carmel-by-the-Sea | Carmel Valley | Del Rey Oaks | Marina | Monterey | Moss Landing Pacific Grove | Pebble Beach | Salinas | Salinas Valley | Sand City | Seaside

A Year of Challenges To say FY2019-20 was a challenging year is an understatement. Even before COVID-19 impacted our County and the world there were a number of challenges including a leadership transition with two key positions and our office building being sold forcing a relocation. Yet FY19-20 was shaping up to be a record year. The organization was on track to set new levels of growth for several key goals and calendar year 2019 visitor spending over $3.2 billion – a record for our destination.

When COVID-19 shut down travel in March 2020, the previous challenges seemed distant. The pandemic called for immediate analysis and decision game planning. Within weeks, MCCVB completely transformed: our Visitor Center closed, nearly 80% of our team was laid off and our office location changed. The word ‘unprecedented’ was often used to describe the COVID-19 crisis, yet still seems to fall short of capturing the calamitous totality of the combined impacts.

While MCCVB and our destination was rocked to its core, we survived the interesting times we encountered, continued to lean in and lean forward; and prepared to lead the tourism economy recovery.

“ Decisive action took place to ensure we could not only survive the immediate impact of the crisis, but also prepare to aggressively reignite Monterey County

When COVID-19 initially shut down travel, no one could accurately gauge tourism when the time how bad things would get. However, after studying available data, engaging in was right.” intensive daily discussions with our senior leadership team and consulting with our Board and Sales and Marketing Committees, we made a series of decisions to prepare for the worst. We developed an Impact Model used to gauge and guide our path forward. There was a chance that MCCVB might not last through the end of the calendar year.

Decisive action took place to ensure we could not only survive the immediate impact of the crisis, but also prepare to aggressively reignite Monterey County tourism when the time was right.

I’ve said many times that we cannot accomplish anything without our members and stakeholders – never has this been more evident than in this past year. Collaboration, engagement and coordination were the essential ingredients that drove both successes and survival in the past year and will continue to carry us forward in years to come.

Thank you.

Rob O’Keefe President & CEO

FY2019-20 ANNUAL REPORT

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MCCVB Vision Inspire the world to experience our extraordinary destination, responsibly.

Mission Drive business growth through compelling marketing and targeted sales initiatives that maximize the benefits of tourism to our guests, members and community.

Values Accountability: We will be responsible for our results, actions and words.

Integrity: We will at all times be trustworthy and honest and do what we say we’re going to do.

Leadership: We will define our vision and advocate for it, allowing our guests and members to benefit from our destination marketing and business development initiatives.

Passionate: We will create success using passion about our profession and achieving results.

Strategic: Our plans will be an efficient and clearly defined roadmap to achieve the targeted goals of the organization.

FY2019-20 ANNUAL REPORT

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Governance BOARD OFFICERS John Turner, Chair, Intercontinental The Clement Monterey Jeroen Gerrese, Treasurer, Sanctuary Beach Resort Kevin Ellis, Chair Elect, Hyatt Regency Monterey Mimi Hahn, Secretary, Monterey Bay Aquarium John Lloyd, Past Chair, Tally Ho Inn and Pine Inn

BOARD DIRECTORS Mary Adams, Board of Supervisors 5th District

Diane Mandeville, Cannery Row Company

Janine Chicourrat, Portola Hotel & Spa

Rene Boskoff, Monterey Marriott

Kirk Gafill, Nepenthe Phoenix Corporation

Sean Damery, Bernardus Lodge & Spa

Amrish Patel, Centrella Inn and Green Lantern Inn

Teri Owens, Embassy Suites Monterey Bay-Seaside

Bina Patel, Peninsula Hospitality Group

Ed Smith, City of Monterey

Rick Aldinger, Big Sur River Inn and Restaurant

Tony Tollner, Downtown Dining

Kimbley Craig, K. Craig Media

Julie Weaver, The Lodge at Pebble Beach

BOARD ADVISORS Jacquie Atchison, Arts Council of Monterey County

Jennifer Fahselt, Monterey Regional Airport

Norm Groot, Monterey County Farm Bureau

Paula Joy MacNab, Monterey County Film Commission

Doug Phillips, Monterey Conference Center Carol Chorbajian, CCM&E Destination Services

Hans Uslar, City of Monterey

Kim Stemler, MCVGA Marilyn Lidyoff, City of Marina

McAbee Beach, Monterey FY2019-20 ANNUAL REPORT

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MCCVB Committees MCCVB operates under the guidance of several Committees, each focused on a specific area of strategic importance for the direction of the organization. Visit SeeMonterey.com/Members/Board to learn more about our Board of Directors and Committees, including meeting dates, agendas and minutes.

NOMINATING COMMITTEE Solicits and reviews board position applications and makes candidate recommendations.

COMPENSATION COMMITTEE Reviews and advises on compensation and benefit programs.

BOARD OF DIRECTORS

MCTID OVERSIGHT COMMITTEE Comprised of hotel representatives from within the Monterey County Tourism Improvement District (MCTID) boundaries and has complete oversight of the MCTID budget, program development and monitoring.

15-19 Directors and up to 15 Advisors oversee strategic direction, progress and budgets of the organization.

FINANCE COMMITTEE Advises the board on financial policies and matters.

SALES COMMITTEE Advises in the development, planning and evaluation of group business development and client service programs.

EXECUTIVE COMMITTEE Supports and evaluates the President & CEO, vets confidential issues and acts on behalf of the full Board of Directors in case of an emergency.

MARKETING COMMITTEE Provides strategic input, expertise and collaboration on marketing communications plans and initiatives.

Hahn Estate Winery, Salinas Valley

FY2019-20 ANNUAL REPORT

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FY2019-20 Financials

(unaudited)

REVENUES: $6,957,976 M onterey County Tourism Investment District (MCTID) Assessment – $3,792,081 Jurisdiction Investment – $2,918,790 Private Revenue – $247,105

EXPENDITURES: $5,655,947 Marketing Communications – $2,114,558 Group Business Development – $2,082,995 Community Relations (Stakeholder Engagement) – $355,164 Visitor Services – $247,687 Administration – $855,543

Fisherman’s Wharf, Monterey FY2019-20 RECOVERY YEAR BUSINESS PLAN

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Marketing Communications The primary goal of Marketing Communications is to drive intent to visit amongst leisure, group and international travelers. Brand-based content marketing successfully drove intent to visit by synergizing advertising, public relations and social media to develop and distribute compelling, targeted content. Additionally, Monterey County values responsible travelers—the quality of traveler over the quantity. MCCVB tailored its messaging to the audience and incorporated responsible travel message throughout.

Intent to Visit

44

Earned Media Equivalency

%

100%

$106M

Goal

Group Business Development The focus of MCCVB’s Group Business Development department was to create and cultivate revenue opportunities through groups, meetings and conferences for the benefit of our hotel community and other related members that draw income from such visitors.

MCCVB is the principal business development organization for the Monterey Conference Center (MCC) which itself has the purpose of generating hotel room nights for area hotels and other businesses that benefit from groups and meetings.

39,142

28,739

Group Room Nights Booked

New Business Room Nights Booked

(52% of 75K Goal)

(48% of 60K Goal)

$8.7M Room Revenue

Bernardus Winery, Carmel Valley

FY2019-20 ANNUAL REPORT

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Community Relations MCCVB has gradually been making the shift towards more community-focused initiatives and programs including Sustainable Moments, Tourism Matters and Responsible Travel initiatives. Tourism is the number one industry on the Monterey Peninsula and the second largest industry in the County. It is important that we continue to build and maintain strategic relationships and have a part in developing programs and initiatives that are focused on recovery, responsibly - in a way that best benefits our community and our residents.

Tourism Provides over

27,000 Jobs

Visitor Services MCCVB’s primary goal as an organization is to put heads in beds. The Visitor Services team accomplished this through the Visitor Information Center at El Estero Park by connecting with visitors in person, online through a live chat service and satellite stations at conventions and conferences. Travelers assisted were an opportunity to generate incremental revenue throughout Monterey County by inspiring guests to see and do more while they are here and encouraging them to extend their stay in the destination while educating them on how to treat our destination responsibly.

HOTEL

41,031

Visitors Assisted

72%

Influenced to Stay Longer (120% of 60K Goal)

FY2019-20 ANNUAL REPORT

$13.7M

Economic Impact of Influenced Room Nights

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Tourism By The Numbers

$3.24B 27,120

In visitor spending

up 3.3% from 2018

People employed in tourism up 1.8% YOY

$153M

In local tax receipts

$144M

In state tax receipts

4.8M

Overnight visitors

$376

up 4.3%

up 3.3%

Average spend per day per hotel/motel overnight visitor

Source: Monterey County Travel Impacts 1992-2019, Dean Runyan Associates, April 2020 FY2019-20 ANNUAL REPORT

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