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HomeMy WebLinkAboutGMCVB Agreement AGREEMENT BETWEEN CITY OF MIAMI BEACH AND THE GREATER MIAMI CONVENTION AND VISITORS BUREAU THIS AGREEMENT, is made and executed as of this /5./ day of Dc 7CJ.t&.,.2004 by and between the CITY OF MIAMI BEACH, a municipal corporation organized and existing under the laws of the State of Florida (the City or Miami Beach), and the GREATER MIAMI CONVENTION AND VISITORS BUREAU, INC., a Florida not-for-profit corporation (the Bureau). RECITALS: WHEREAS, the City was formally a party to an Interlocal Agreement, dated September 30, 1993, by and among the Bureau and Miami-Dade County, the City of Miami Beach, the City of Miami, and the Village ofBal Harbour; and WHEREAS, on January 6, 1999, the Mayor and City Commission negotiated a one year Agreement with the Bureau, with a term commencing on December 1, 1998, and ending on September 30, 1999; and WHEREAS, following extensive meetings with the City's Blue Ribbon Committee on Conventions and Tourism, the Mayor and City Commission negotiated a new agreement with the Bureau, said agreement having a term commencing on October 1, 1999 and ending on September 30, 2002; and WHEREAS, on May 22, 2002, the Mayor and City Commission adopted Resolution No. 2002-24854, authorizing the execution of a renewal of the aforestated Agreement between the City and the Bureau; said renewal having a term commencing on October 1, 2002, and ending on September 30,2004, and further conditioned upon the issuance of a Request for Proposals (RFP) to review and assess the current Bureau's governance, structure, processes and overall operations, and make recommendations as to what model and/or structure should provide the services to achieve optimal sales, marketing, and public relations efforts to enhance the City's tourism and convention industries; and WHEREAS, on July 31, 2002, the Mayor and City Commission discussed whether the City should participate with Miami-Dade County and the City of Miami in a collaborative study and 1 evaluation of the Bureau; the City elected to conduct its own study; and WHEREAS, on November 13,2002 the Mayor and City Commission adopted Resolution No. 2002-25072, and authorized a contract with Economics Research Associates (ERA) to review and assess the current Bureau governance, structure, processes and overall operations, and make recommendations as to what model and/or structure should provide the services to achieve optimal sales, marketing, and public relations efforts to enhance the City's tourism and convention industries; and WHEREAS, on March 15, 2004, the City's Finance & Citywide Projects Committee discussed the findings ofthe ERA report; the Committee instructed the Administration to review and analyze the Bureau's latest contract to rate how it had fulfilled its obligations, and compare the ERA report in conjunction with Miami-Dade County's findings and the Bureau's Strategic Plan; and WHEREAS, on July 28, 2004, the Bureau's Strategic Plan, dated July 21, 2004, was submitted to the Mayor and City Commission for their review, as required pursuant to its current contract; and WHEREAS, on September 1, 2004, a report was submitted by ERA, dated February 7,2004, to the Finance and Citywide Projects Committee rating the Bureau's performance over the contract period to be generally positive, and recommended that the City Administration be directed to negotiate terms of a new agreement with the Bureau; and WHEREAS, accordingly the City and the Bureau have negotiated the foregoing Agreement, with a proposed five (5) year term, commencing on October 1,2004, and ending on September 30, 2009, and further subject to the foregoing terms and conditions, as set forth below. NOW THEREFORE, the parties agree as follows: SECTION 1 CONTRACT WITH THE BUREAU. SECTION 1.01 Bureau Functions. Miami Beach hereby contracts with the Bureau for the following tourism and convention sales and promotion functions: (a) To develop, promote, market, book and secure conventions, trade shows and group business; (b) To expand, develop and promote tourism in the City of Miami Beach in the domestic and world markets, through consumers, travel agents, tour 2 operators, wholesales, airline marketing, media, advertising, and other modalities determined by the Bureau, including, but not limited to, expansion, development, and promotion oftourism in the City during the "off season", as said term is customarily defined within that industry; (c) To maintain programs and services, in connection with the marketing and promotion of conventions and tourism, including convention services, tourist reservation services, and other operational and administrative programs in connection therewith; to prepare and distribute brochures, pamphlets and other advertising information, in a manner generally accepted in the tourism and convention industry, disseminating information about Miami Beach; to cooperate with segments of the private tourism and convention business community for the booking of hotel reservations, tour packages, car rentals, and other such services; and conducting activities normally provided by like convention and visitors bureaus in other parts ofthe nation; (d) To engage in tourism and convention research and planning, and to conduct campaigns of information, advertising, publicity, marketing or sales relating to tourism, and conventions; (e) To conduct or assist in the conducting and carrying out of any program or project designed to attract visitors and conventions within the market area of the City of Miami Beach, and to encourage and cooperate with public and private organizations or groups, hotels, motels, restaurants and other tourist related entities in their efforts to promote and attract tourists and conventions to and in Miami Beach; (f) To employ, engage, compensate and discharge sufficient qualified personnel necessary to carry out the functions of this Agreement, and to budget, administer and implement the funds received by it; (g) To actively seek out, raise, and increase private sector monies, gifts, fees, revenues and donations, in addition to the public funds transferred to it by the terms of this Agreement; (h) To enter into contracts with agencies, corporations, persons, or other entities to accomplish any or all ofthe above; 3 (i) To the maximum extent possible, provide economic opportunities to Miami Beach businesses and vendors through the Bureau's procurement of goods and services, and to proactivelymarket, promote and disseminate information to Miami Beach businesses and vendors with regard to the Bureau's procurement policies in an effort to provide increased competition and awareness as to new and future prospective bids, proposals, and other procurement opportunities; (j) To implement the "Strategic Plan for Greater Miami and the Beaches Visitor Industry", dated July 21 , 2004, and attached hereto and incorporated herein as Exhibit "A" (the Strategic Plan), , as further provided in Section 1.03 of the Agreement; (k) To involve in Bureau act,ivities, to the maximum extent possible, policy makers of Miami Beach; (1) In addition to actively seeking out and raising funding from the private sector, as set forth in subsection 1.01 (g) herein, to do increased partnering, as well as co-promotions, with hotels, restaurants, retail venues, and other tourist draws and attractions within the City of Miami Beach; (m) To continue to emphasize Miami Beach as a "destination resort" by way of campaigns of information, advertising, publicity, marketing and/or sales, and/or event production and promotion; (n) To aggressively pursue and "court" television and other comparable media events including, but not limited to, the Super Bowl; Latin Grammys; MTV Video Music Awards, etc., that will air from, or host events from, the City of Miami Beach, and draw national and international media attention to the City; (0) To support and contribute funds for the Miami Beach Convention Center Market Incentive Fund; and (P) To perform any other function reasonably related to the policy and purpose of this Agreement. Miami Beach acknowledges that priority for bookings shall be given to convention and group business that results in hotel room occupancy, in accordance with the Miami Beach Convention 4 Center Booking Policies, as same may be amended from time to time. SECTION 1.02 Sub-market Initiatives. Sub-market initiatives have been developed by the City, in partnership with the Bureau, and are detailed in Exhibit B, which is attached and incorporated hereto. These initiatives are organized in a manner that meets the new established goals for the Bureau, as set forth in the Strategic Plan. The Bureau will be responsible for implementing these identified initiatives during the first contract year, (October 1,2004 - September 30,2005), ofthe Agreement. These initiatives will be revisited annually and established by the City, at its reasonable discretion, on an annual basis; such updated/re-established initiatives shall be evidenced each contract year with an updated Exhibit B, and shall be implemented by the Bureau during the respective contract year. The Bureau agrees that no less than $950,000 will be targeted annually during the Term of the Agreement to support and implement the sub-market initiatives in Exhibit B, and as may be revisited and re-established by the parties. Additionally, the Bureau hereby agrees to re-structure its Marketing and Tourism committee to fully reflect and be representative of the sub-market initiatives referenced in this Section 1.02 and in Exhibit B attached hereto, as same may be revisited and re-established by the parties. SECTION 1.03 Implementation of Strategic Plan. The Bureau has developed the Strategic Plan, attached as Exhibit A hereto, and hereby agrees, to implement the recommendations as set forth in Exhibit C. Additionally, the Bureau hereby agrees to further perform and conduct such additional research, as is identified in Task 4 of the Market Assessment prepared by ERA, dated August 25, 2003, and attached as Exhibit D, which is attached and incorporated hereto. SECTION 2 TERM The term of this Agreement shall commence on October 1,2004, and terminate on September 30, 2009 (the Term). Notwithstanding the foregoing, the City may terminate this Agreement at any time, upon sixty (60) days written notice to the Bureau, in the event that the Bureau, in the sole discretion of the City, fails to comply with any of the terms and conditions set forth in this Agreement. Upon receipt 5 of said written notice from the City, the Bureau shall have thirty (30) days within which to cure the default(s) set forth therein. In the event that said default(s) is not cured within the aforestated cure period, this Agreement shall terminate with no further notice from the City required; said termination effective thirty (30) days from the date of the City's written termination notice; and the City shall have no further liability under this Agreement. In the event of termination of this Agreement pursuant to this Section, or otherwise prior to the expiration ofthe Term herein, the City shall have no further obligation to fund and/or otherwise allocate and/or appropriate any remaining funds pursuant to this Agreement. Additionally, in the event oftermination or other early expiration ofthis Agreement, the Bureau shall immediately remit back to the City any and all unencumbered City funds allocated to the Bureau including, but not limited to, the City's Contribution (as set forth in Section 4.01) and the funds allocated by the City toward the Bureau's Business Recovery Fund (as set forth in Section 4.02(c)). Notwithstanding the preceding paragraph, the parties hereto acknowledge that the Bureau and the City may, during the term of this Agreement, enter into partnership ventures and/or solicit business ventures and other opportunities that are expected to predominantly benefit the City of Miami Beach in future years, and which may entail a funding commitment(s) beyond (i) a termination of this Agreement, and/or (ii) the term ofthe Agreement. In such cases, the City and the Bureau shall expressly agree, in writing, on a case by case basis, that the particular partnership(s) and/or business venture(s) is intended to be funded by the Bureau and/or the City beyond an early termination and/or expiration of the Agreement. SECTION 3 CITY PARTICIPATION ON BUREAU BOARD OF DIRECTORS, EXECUTIVE COMMITTEE, COMMITTEES AND/OR SUB- COMMITTEES The Bureau shall be managed by a Board of Directors (Board), having such number of members and such composition as may be determined from time to time by the Bureau. Such Board shall be representative ofthe hotel and visitor industry and shall reflect the ethnic and multi-cultural diversity of the community, be gender representative, and recognize that industry involvement is critical. The Bureau shall act through an Executive Committee which shall meet between meetings of the Board. The composition ofthe Executive Committee shall be determined by the Board. 6 The Bureau shall also establish, as it deems appropriate, working committees and/or sub- committees, which may include, but not be limited to, a Finance Committee; Marketing and Tourism Committee; Convention Sales Committee; Nominating Committee, and Community Relations Committee. The composition of such committees and sub-committees shall be determined by the Board. Notwithstanding the foregoing, the Bureau herein recognizes the significant financial contributions made by the City of Miami Beach pursuant to this Agreement; accordingly, the Bureau and the City herein agree that, throughout the Term of this Agreement, the City's representation and membership on the Board, Executive Committee, and any and all committees and/or sub- committees, respectively, shall be as follows: (a) Board of Directors. The City's representation and membership on the Board shall be a number proportionate to the percentage amount of the City's total annual financial contribution to the Bureau, as set forth in this Agreement, in relation to the Bureau's total operating budget; but in no event shall said percentage be less than 30%. The afore stated members shall be voting members of the Board, selected by the Board from a slate submitted by the City Manager, and shall be (i) residents of Miami Beach; and/or (ii) representative of the hotel and visitor industry in Miami Beach; and (iii) reflect the ethnic and multi-cultural nature of the City of Miami Beach, and be gender representative. (b) Executive Committee. The City's representation and membership on the Executive Committee shall be a number proportionate to the percentage amount ofthe City's total annual financial contribution to the Bureau, as set forth in this Agreement, in relation to the Bureau's total operating budget; but in no event shall said percentage be less than thirty percent (30%). The aforestated members shall be voting members of the Executive Committee, selected by the Board from those members ofthe Board selected from the City's slate for the Board; however, 7 the City's proportionate representation and membership on the Executive Committee must include the following: (i) At the option of the City, the Mayor of Miami Beach or his/her designated representative (who shall be a member of the Miami Beach City Commission); and (ii) the City Manager of Miami Beach. ( c) Committees and/or Sub-Committees. The City's representation and membership on any and all Bureau committees and/or sub-committees, respectively, shall be a number proportionate to the percentage amount of the City's total annual financial contribution to the Bureau, as set forth in this Agreement, in relation to the Bureau's total annual operating budget; but in no event shall said percentage be less than 30%. The aforestated committees and/or sub-committee members shall be voting members and shall be (i) residents of Miami Beach; and/or (ii) representative of the hotel and visitor industry in Miami Beach; and (iii) reflect the ethnic and multi-cultural diversity of the City of Miami Beach, and be gender representative. Notwithstanding the above, throughout the Term of this Agreement (i) the City Manager or his designee shall be a voting member of the Finance Committee; and (ii) the General Manager ofthe Miami Beach Convention Center shall be a voting member of the Convention Sales Committee. SECTION 3.01 Re-structure of Bureau. Board, Executive Committee. and/or Committees and Sub-Committees. The parties acknowledge that on October 28, 2004, the Bureau approved a new governance plan, as recommended and set forth in the Strategic Plan (Exhibit A), and the March 5, 2004 Final Report prepared for the City by ERA; accordingly, by the end of the first contract year of the Term of the Agreement (September 30, 2005) the Bureau shall also implement the re-structure and make-up 8 of the Board, Executive Committee, and any and all committees and/or subcommittees, as the aforestated Final Report relates to recommendations as to "Board Size" (page 4, IV -13 of the Report), and as attached and incorporated as Exhibit E hereto. Notwithstanding the preceding paragraph, any new governance plan and re-structure shall, at a minimum, maintain the City participation, representation and membership on the Board, Executive Committee, and committees and/or sub-committees, respectively, as referenced and required by this Section 3. SECTION 4 FUNDING. SECTION 4.01 Contribution from Miami Beach (the City's Contribution). (a) The City's total annual contribution to the Bureau for the Term of this Agreement shall be $5 million dollars (the City's Contribution). The City's Contribution shall be paid from the Municipal Resort Tax revenues levied and collected by the City pursuant to Chapter 67-930, Laws of Florida, and the respective ordinances applicable thereto, as amended from time to time (the Tax). For purposes of this Agreement, the Tax shall be further defined as derived only from the two percent (2%) portion of the Municipal Resort Tax collections generated from the sale of hotel rooms, food and beverage, and alcohol throughout the City of Miami Beach. (b) The City shall distribute the City's Contribution to the Bureau after the following distributions and deductions have been made: (i) Less four percent (4%) of the total gross revenues collected from the Municipal Resort Tax, for collection costs; and (ii) All payments shall be junior and subordinate in all respect to any and all obligations of the City required under any resolutions or ordinances pursuant to which bonds or other indebtedness ofthe City of Miami Beach are issued which are secured by the Municipal Resort Tax. (c) At the commencement of the 2nd contract year ofthe Agreement, and at the beginning of every contract year thereafter, the annual City's Contribution 9 will be adjusted by 3% or the increase in the CPI-U, whichever is less. (d) The City's Finance Director shall be responsible for making such debits and credits, collection costs, and monies pledged to bonds or other indebtedness of the City, as set forth in this Section 4. (e) The sole funding authority for payment of the City's Contribution pursuantto this Agreement shall be from the Tax revenues, and the City shall have no obligation to continue to pay the City's Contribution to the Bureau, or to provide an alternate funding source, in the event that adequate funds from the Tax revenues do not become available at any time during the Term of this Agreement. (f) The Bureau and City herein agree and acknowledge that the Bureau may generate a surplus (excess revenues over expenses) from time to time. The portion of the surplus coming from Miami Beach shall be defined as the proportionate share of the City's Contribution, as defined in this Section 4.0 I , to total Bureau Revenue which shall be defined as all public and private revenues collected by the Bureau. The Bureau and the City agree that the Bureau shall utilize such surplus funds for any Strategic Plan initiative that is mutually agreed to in writing in advance by the Bureau and the City manager. In the event that the Bureau does not utilize surplus funds in the manner prescribed in this subsection, then the Bureau shall either (i) immediately remit any and all such surplus funds to the City, or (ii) apply and utilize the surplus funds toward the sub-market initiatives referenced in Section 1.02 and Exhibit B (as same may be amended) to the Agreement (over and above the $950,000 targeted amount). SECTION 4.02 Public Funds. The Bureau shall maintain the City's Contribution and any and all other public funds allocated and/or appropriated to the Bureau pursuant to the Agreement, in an account or accounts segregated fi:om and not commingled with any privately raised funds. (a) Method ofPavrnent and Disbursement. Throughout the Term of this Agreement, Miami Beach shall transfer to the Bureau its required share of the 10 revenues described herein within thirty (30) days after the last day of the month in which Miami Beach received the funds. (b) Prohibited Expenditures from Public Funds. The Bureau shall not expend public funds for the following: Bureau staff travel and entertainment, except that travel and entertainment expenses for up to eighteen (18) persons whose Bureau positions appear in Exhibit F, will be permitted when soliciting or promoting a major Convention or Corporate meeting, booking, or travel trade; any matters relating to the Bureau's function as an association, including but not limited to membership dues and salaries of personnel whose duties relate to membership marketing; the salary, benefits and prerequisites ofthe Chief Executive Officer; interest expenses on loans to the Bureau; and any and all other expenses relating to activities beyond the scope of this Agreement. (c) Disposition of City Funds Formerly Pledged for Watson Island Visitor Center Facility. Pursuant to Section 2.02 ofthe Agreement between the City and the Bureau, dated July 7, 1999, the City agreed to the use of certain City funds, currently estimated by the parties to be a minimum of$l ,000,000, but said final exact amount to be verified by the City's Chief Financial Officer, for the construction of the Bureau's proposed headquarters and visitor center, which was to be located on Watson Island, in the City of Miami Beach (the visitor center or the Facility). The City agreed to the use of said public funds solely for that purpose. Any change in use ofthe proposed Facility could not be made without the prior written consent of the City; which consent has heretofore not been given by the City. The Bureau has since advised the City, and hereby represents, that it has determined not to proceed with the construction ofthe Facility. Accordingly, in reliance on the Bureau's representation, the City hereby consents to the use ofthe City funds formerly pledged by the City toward the construction ofthe Facility as follows: (i) An amount equal to the two thirds (2/3rds) portion of any and all City funds formerly pledged by the City toward the 11 Facility, and currently held by the Bureau in that certain separate account/fund referred to by the parties as the "Watson Island Trust", shall be re-directed to a separate fund/account, to be maintained by the Bureau and referred to by the parties as the "Business Recovery Fund" (the 2/3rds portion). (ii) While the parties agree and acknowledge that the entire 2/3rds portion shall be placed in the Business Recovery Fund, the Bureau agrees that its ability to access the 2/3rds portion shall be limited to five equal installments, each installment available for access to the Bureau at the commencement of each contract year (October 151) during the Term of the Agreement (in this way, and notwithstanding the placement of the entire 2/3rds portion into the Business Recovery Fund, the net effect would be such that the City were essentially allocating a one-fifth (115) ofthe 2/3rds portion per contract year, for access and use by the Bureau). (iii) In the event of termination or other early expiration of this Agreement, the Bureau shall immediately refund to the City, the unearned remaining balance ofthe 2/3rds portion due for the remainder of the Agreement. (iv) An amount equal to the remaining one third portion of the City funds formerly pledged by the City for the construction of the Facility shall be reimbursed by the Bureau to the City concurrent with the Bureau's execution of this Agreement. (the 1/3rd portion) (v) The City, at its discretion, shall reserve the 1I3rd portion, to be used at a future date(s) by the City, in its reasonable discretion, toward initiatives, studies, projects, and/or other activities consistent with the purpose ofthis Agreement. (vi) The Bureau agrees to amortize and accrue the 2/3rds portion 12 over the Term of the Agreement. However, if an event, as defined in the Business Recovery Fund, and as attached and incorporated as Exhibit G hereto, were to occur during the Term of the Agreement which necessitated the use ofall or a portion of the 2/3rds portion then, and only then, shall the Bureau be entitled to the use of said funds. Additionally, in the event that the Bureau is required to use all or a portion of the 2/3rds portion, it will immediately advise and notify the City Manager of any proposed use prior to allocation of same, and shall obtain the prior written consent of the City Manager prior to such use/allocation. (d) Contribution from the Bureau to City In consideration ofthe City's participation in this Agreement, throughout the Term herein, the Bureau shall make the following annual contribution to the City, as follows: (i) $200,000 for the first Contract year, $100,000 for the second contract year, and thereafter $50,000 per year - the first annual payment due upon execution of this Agreement and, thereafter, each year throughout the Term ofthis Agreement, payable on October 1st of the fiscal year then in effect; said contribution to be used by the City to provide continued funding for the City of Miami Beach Cultural Arts Council. SECTION 4.03 No Impairment of Bond Obligations. In the event Miami Beach determines that the allocation of Tax revenues required to be made under Section 4.01 may impair the obligation of any contractual arrangement between Miami Beach and the holders of its bonds secured by said Tax revenues, Miami Beach's participation in this Agreement shall be forthwith terminated; provided, however, that in the event of such termination, Miami Beach shall continue to be bound by any prior committed contract, convention reservation or other commitment duly made by the Bureau up to the date oftermination of this Agreement. 13 SECTION 4.04 Additional Services. Throughout the Term of this Agreement, the City may elect at its sole discretion, to contract with the Bureau for additional services, which may be funded from the City's Resort Tax Contingency Fund, or such other source of funding that the City may deem appropriate, and upon prior approval by Mayor and City Commission. SECTION 5 INSURANCE. The Bureau shall not commence any work and/or services pursuant to this Agreement until all insurance required under this Section has been obtained and such insurance has been approved by the City's Risk Manager. The Bureau shall maintain and carry in full force during the term of this Agreement the following insurance: Consultant General Liability in the amount of$I,OOO,OOO. Consultant Professional Liability/Errors and Omissions in the amount of$l ,000,000. Workers Compensation & Employers Liability, as required pursuant to Florida Statute. Crime Insurance/Employee Dishonesty which provides third part'i~r su~es liability in the amount of $ c25/ 0 0 o. tJ..41:)- {j~ The insurance must be furnished by insurance companies authorized to do business in the State of Florida and approved by the City's Risk Manager. Original certificates of insurance for the above coverage must be submitted to the City's Risk Manager for approval prior to any work commencing. These certificates will be kept on file in the Office of the Risk Manager, 3rd Floor, City Hall, Miami Beach, Florida. All insurance policies must be issued by companies authorized to do business under the laws 1. 2. 3. 4. 5. 6. of the State of Florida. The companies must be rated no less than "B+" as to management and not less than "Class VI" as to strength by the latest edition of Best's Insurance Guide, published by A.M. Best Company, Oldwick, New Jersey, or its equivalent, subject to the approval of the City's Risk Manager. Compliance with the foregoing requirements shall not relieve the Bureau ofthe liabilities and obligations under this Section or under any other portion of this Agreement, and the City shall have the right to obtain from the Bureau specimen copies ofthe insurance policies in the event that submitted certificates of insurance are inadequate to ascertain compliance with required overage. 14 SECTION 5.01 Endorsements. All of Bureau's certificates, above, shall contain endorsements providing that written notice shall be given to the City at least thirty (30) days prior to termination, cancellation or reduction in coverage in the policy. SECTION 5.02 Certificates. Unless directed by the City otherwise, the Bureau shall not commence any work and/or services pursuant to this Agreement until the City has received and approved, in writing, certificates of insurance showing that the requirements of this Section (in its entirety) have been met and provided for. SECTION 6 INDEMNIFICATION. The Bureau agrees to indemnify and hold harmless the City of Miami Beach and its officers, employees and agents, from and against any and all actions, claims, liabilities, losses, and expenses, including, but not limited to, attorneys' fees, for personal, economic or bodily injury, wrongful death, loss of or damage to property, at law or in equity, which may arise or be alleged to have arisen from the negligent acts, errors, omissions or other wrongful conduct of the Bureau, its employees, Board members, committee and/or sub-committee members, agents, sub-consultants, or any other person or entity acting under Bureau's control, in connection with the Bureau's performance of any work and/or services pursuant to this Agreement; and to that extent, the Bureau shall pay all such claims and losses and shall pay all such costs and judgments which may issue from any lawsuit arising from such claims and losses, and shall pay all costs and attorneys' fees expended by the City in the defense of such claims and losses, including appeals. The parties agree that one percent (1%) of the total compensation to the Bureau for performance of the work and/or services under this Agreement is the specific consideration from the City to the Bureau for the Bureau's Indemnity Agreement. The Bureau's obligation under this Section shall not include the obligation to indemnify the City of Miami Beach and its officers, employees and agents, from and against any actions or claims which arise or are alleged to have arisen from negligent acts or omissions or other wrongful conduct of the City and its officers, employees and agents. The parties each agree to give the other party prompt notice of any claim coming to its knowledge that in any way directly or indirectly affects the 15 other party. The City and Bureau hereby agree and acknowledge that the provisions of this Section 6 shall survive the Term ofthis Agreement. SECTION 7 REPORTS, RECORDS AND EVALUATION. The Bureau agrees, each contract year during the Term of this Agreement: (i)to provide to Miami Beach, through its City Manager, within ninety (90) days after the end of its fiscal year, an annual audited report covering the receipt and expenditure of public and private funds, prepared by an independent certified public accountant, in accordance with generally accepted accounting principles and practices consistently applied; (ii) to prepare and submit to Miami Beach, through its City Manager, a copy of the Bureau's annual budget, prior to approval of said budget by the Bureau, for said fiscal year; (iii) to submit an Annual Report to Miami Beach before the end of October of each year; (iv) to permit Miami Beach to carry out monitoring and evaluation activities in such manner as will effectively insure the cooperation of the Bureau in the performance of its functions, so long as such inspection and monitoring does not unreasonably impede or interfere with the functions of the Bureau, and such monitoring and evaluation activities may include inspection of records of all expenditures from public and private funds; (v) to provide to Miami Beach such reports as may be reasonably requested by it (including, but not limited, to the IACVB containing annual comparisons of similar bureaus throughout the country); (vi) to provide, not less often than quarterly, an activity and financial report, setting forth generally the activities ofthe Bureau during the previous quarter; and (vii) to permit Miami Beach to conduct, at its own expense, a full and detailed annual audit of the Bureau's records to determine how the Bureau utilized public monies contributed under this Agreement and to permit Miami Beach to conduct, at its own expense, quarterly inspections ofthe Bureau's records, to the extent that those records relate to public funds. Any such audits or inspections shall be conducted in such manner and at such times so as not to unreasonably interfere with the day to day operations of the Bureau. In order to satisfy the provisions ofthis Section 7.02, the City and the Bureau hereby agree and acknowledge that said provisions shall survive the Term of this Agreement, as set forth herein. 16 SECTION 7.01 In addition to the reports, records and evaluations set forth in the preceding Section 7, the City, at all times during the Term, reserves the right, at its sole option and discretion, to engage an independent consultant to review and assess the Bureau's governance, structure, process and operations, particularly with an emphasis on the impact of same related to the Bureau's performance pursuant to the Agreement. Accordingly, the Bureau herein warrants and represents to the City that it shall grant said consultant full and complete access to any and all records, documents, correspondence, as the Bureau may maintain throughout the normal course of its business, for inspection by the consultant, at the Bureau's main place of business, during normal working hours. SECTION 7.02 Public Records and Open Meeting Policy. TheBureaushall adhere to the policy attached as Exhibit H to this Agreement regarding access to its Board, Executive Committee, and committee and/or sub-committees meetings, as well as its corporate records. SECTION 7.03 Performance Reports. The Bureau agrees to provide the City with monthly and annual reports measuring and benchmarking the Bureau's success as identified in the Strategic Plan. These reports shall include, but not be limited to, the following categories: Operating Policies & Procedures: Visitor Center Guidebook Convention Sales Standard Operating Procedures Convention Services Standard Operating Procedures SMG/MBCC & GMCVB Marketing Agreement Tourism Sales: New leisure visitor generated and estimated visitor receipts New tour operator sales leads generated and attendant dollar value GMCVB Membership: Increase Private Membership participation Leverage and In-kind Support 17 ROI Analysis: Conventions & Meetings (annual number of conventions/meetings booked, anticipated delegates/visitors, room nights and total estimated delegates/visitors receipts) Advertisings (conversion analysis estimating actual new visitors, hotel room nights and visitors receipts) GMCVB Website (hotel booking results) Tourism Sales Revenue Per Available Rooms (Rev Par) Total Number of Positive Media Impressions Resource Reports to be submitted: Lost Business Reports Cancelled Business Reports In-kind Partnership Report Conversion of Sales Leads to Business Booked Convention Income Survey Convention Summary Reports E-Autofeedback Sample Survey An additional detailed list of required reports is provided in Exhibit I, attached and incorporated hereto. SECTION 8 PROCUREMENT OF GOODS & SERVICES. In addition to the provisions of 1.01 (i), the Bureau shall procure goods and services on a competitive basis and shall provide opportunities for African American, Hispanic American and women owned businesses and services. In order to promote a broader outreach and encourage new and diverse potential bidders and proposers, the Bureau shall use its best efforts in cooperating with the City to establish a broader-based "pool" from which to procure said goods and services. This may include, but not be limited to, workshops to be co-sponsored by the City and the Bureau for that purpose, said workshop(s) and to be held on Miami Beach. 18 SECTION 9 NOTICES. All notices, demands and requests which are given by the parties shall be in writing and shall be deemed to be properly given if sent by United States mail, postage prepaid, addressed as follows: As to Miami Beach: Attention: City Manager City of Miami Beach 1700 Convention Center Drive Miami Beach, FL 33139 As to the Bureau: Attention: President Greater Miami Convention & Visitors Bureau 701 Brickell Avenue, Suite 2700 Miami, FL 33131 Any such names and addresses may be changed at any time upon the giving of written notice of such change sent by United States mail, postage prepaid, to the other parties affected by the change. A copy of any notice sent by one party to another shall be sent to all other parties noted above. SECTION 10 STATUS OF BUREAU AS INDEPENDENT CONTRACTOR. The parties hereto understand and agree that the relationship of the Bureau and Miami Beach is that of an independent contractor. In carrying out its functions under this Agreement, the Bureau is not, nor shall it ever be construed as, the agent or representative of Miami Beach, and this Agreement is not intended to establish a partnership, ajoint venture, or the relationship of principal agent. SECTION 11 GOVERNING LAW AND EXCLUSIVE VENUE. This Agreement shall be governed by, and construed in accordance with, the laws ofthe State of Florida, both substantive and remedial, without regard to principles of conflict of laws. The exclusive venue for any litigation arising out of this Agreement shall be Miami-Dade County, Florida, ifin state court, and the U.S. District Court, Southern District of Florid a, ifin federal court. BY ENTERING INTO THIS AGREEMENT, THE CITY AND THE BUREAU EXPRESSLY WAIVE ANY RIGHTS EITHER PARTY MAY HAVE TO A TRIAL BY JURY OF ANY CIVIL LITIGATION RELATED TO, OR ARISING OUT OF, THIS AGREEMENT. 19 IN WITNESS WHEREOF, Miami Beach and the Bureau have caused this Agreement to be duly executed in their name and on their behalfby their duly constituted officers, and the Bureau has caused this Agreement to be duly executed by its duly authorized corporate officers, all as of this ~ day of Urt>&-r'L , 2004. f~QP~ City Clerk Attest: Attest: GREATER MIAMI CONVENTION & VISITORS BUREAU ~ President firlCL prLirLff W// II am j).TrUber!J III Print Name Print Name F:latto\AGUR\AGREEMN1\GMCVB Agreement (2004) - Final (l2-29-04).doc APPROVED AS TO FORM & LANGUAGE a FOR EXECUTION ~ 1~;;:P.Jc-r STATE OF FLORIDA ) 20 COUNTY OF DADE ) ) SS: The foregoing instrument was acknowledged before me this &- day of b/}~fl:' ' 20~by Mayor David Dermer and Robert Parcher, City Clerk, or their designees respecti ely, on behalf of the CITY OF MIAMI BEACH, known to me to be the persons described in and who executed the foregoing instrument, and acknowledged to and before me that they executed said instrument for the purposes therein expressed. WITNESS my hand and official seal, this 10 day of .-1?ht./d'Y ,20Qf: ;{l~~L1//~ Notary Public, State of Florida at Large Commission No.: My Commission Expires: STATE OF FLORIDA ) "MiA CALOEROiN . c..tDCIlI... . . ....,f1101D1t '" ........lIlIu -.- ~""Inc 21 COUNTY OF DADE ) ) SS: The foregoing instrument was acknowledged before me this 2004, by _WI1l1t1fy) jJ lt1Jj)z,rf} ""JJL , President, and their designees respectively, on behalf of the GREATER MIAM CONVENTION& VISITORS BUREAU, known to me to be the persons described in and who executed the foregoing instrument, and acknowledged to and before me that they executed said instrument for the purposes therein expressed. WITNESS my hand and official seal, this /()f!ldayof tJat-Jurlltj ,2004. tna- Notary Publi State of Florida at Large Commission No.: My Commission Expires: 1':1\ Toni Johnaton . ~j MyComrnlUlonOO11e211 \;./:.1 Expint8 May 09, 200tI 22 Exhibits A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination A Strategic Plan for Greater Miami and the Beaches' Visitor Industry Prepared by: 1M GREATER MIAMI CONVENTION & VISITORS BUREAU in collaboration with: Marshall Murdaugh Marketing / CSL International Economics Research Associates (ERA) / Tourism Development Associates (TDA) Ernst & Young July 21, 2004 EXHIBIT A Greater Miami Convention & Visitors Bureau Strategic Work Plan - Table of Contents - I. Introduction......... .......................... .................. .....3 - Background - References to Visitor Industry Plan (1992/93) - Update on Goals Stated II. Audit & Research Reports - Summaries, Outcomes and "isioll...................................................................9 - A summary of Findings and Recommendations from the Audits and Planning Phase Including Trend Analysis and Research Findings - A Summary of Desired Outcomes and Priorities from the GMCVB Executive Committee Retreat III. Sales & Marketing Strategies to Produce Desired Outcomes................................ ........................... ..24 IV. Accountability: Performance Measures and Return on Investment.... ............. ....................................... ....54 V. Budget and Related Implications for Implementation...... 70 VI. Stated Goals............. ......... ............ ......... ...............73 - Enhance Infrastructure and Attractions Assets - Enhance the Visitor Experience Optimize Sales & Marketing Activities and Performance Stewardship and Voice of Visitor Industry - Measurement Criteria and Return on Investment A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 2 I. Introduction The Greater Miami Convention & Visitors Bureau's Executive Cornmittee conducted its annual retreat on March 19-20,2004. The prirnary focus of this retreat was to review and discuss the findings and recommendations of two separate and independent performance audits/reviews conducted by consultants engaged by Miami-Dade County and the City of Miami Beach, as well as a summary of findings, issues and recommendations identified by a tearn of consultants engaged by the Bureau to assist in the development and adoption of a Strategic Plan moving forward. During the retreat, all three tearns of consultants presented the written reports (on file and used extensively in the preparation ofthis report) and discussed with the Executive Committee the various components within. The Executive Committee also conducted a review and discussion of each report and worked to establish a set of key priority issues facing the organization. At the conclusion of the retreat, the Executive Cornmittee instructed staff to compile a comprehensive draft consolidating the findings and the issues identified, as well as to develop a formal outline and foundation for the adoption of an organizational Strategic Work Plan moving forward. Staff also reviewed and incorporated in this report the findings and recommendations of the most recent Strategic Plan conducted in 1992/93, and provided an update on the goals stated within. In addition, this strategic workplan incorporates findings, recomrnendations and issues identified to provide a outline for the adoption ofthe next phase ofthe Greater Miami Convention & Visitors Bureau Sales & Marketing Plan including the upcoming planning and prioritization cycle for the preparation and adoption of the Program of Work and Budget for FY 2004/05. This report outlines a series of options and methodologies for the Bureau to incorporate in the establishment of performance measures as well as the calculation of Return on Investment formulas to track performance and impact. The report further identifies financial implications for the organization and industry stakeholders to consider in moving forward, as well as a summary of key issues addressing the destination's tourism product and visitor service levels. The conclusion of this report also outlines five (5) specific Goals for the Greater Miami Convention & Visitors Bureau to adopt and advocate for in the implementation of strategies and prograrns moving forward. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 3 The Visitor Industry Plan (VIP): After Hurricane Andrew devastated South Dade in August 1992, the Greater Miarni Convention & Visitors Bureau (GMCVB) was awarded a grant for tourism recovery activities from the U.S. Department of Commerce's Economic Development Administration (EDA). The South Dade EDA Executive Committee, working with the GMCVB, recommended spending part of the grant on a tourism strategic plan. Understanding that South Dade's tourism is intertwined with visitation to other areas of the county, it was agreed that the plan would include all of Dade County. This proved to be a key decision because tourisrn crime became a serious problem for the industry and directly contributed to the first declines in visitor numbers in the past 10 years. The consulting firm of Arthur Andersen was selected to facilitate the 10-month strategic planning process which resulted in the Visitor Industry Plan (VIP). More than 300 visitor industry and community representatives from throughout Dade County participated in a strategic planning process from March-Decernber 1994. A Working Group of 70 leaders crafted the initial vision, rnission and goals, and elected a Steering Committee. More than 250 participants affirmed the goals and recornmended objectives and strategies at a day-long conference and in dozens of subsequent Task Force meetings. Five town hall meetings, a government briefing, a legislative surnmit, and a private sector leadership focus group were held to get input from the public, as well as community and business leaders and appointed and elected officials. Key Findingsffrends: Observations and assessments of industry trends over the period from 1989-93 concluded that the tourism industry was being threatened. Significant challenges remained as the community recovered frorn the impact of Hurricane Andrew in 1992. And while the number of overnight visitors was again increasing, their average daily expenditures were on a decline. The percentage of ovemight visitors coming for the purpose of "leisure and vacation" was also down slightly. Most significantly, there was a significant decline in the number of visitors from dornestic markets (4.8 million in 1989 declining 28.4% to only 3.4 million domestic visitors in 1993). Conversely, international visitors increased significantly during this period (an 86.6% increase from 1989-93) prirnarily due to booming Latin American economies and travel patterns. This resulted in a rnajor shift in Miami's visitor mix from 62% domestic visitors in 1989 to 61% international visitors in 1993. There was also an increasing dependence on Latin American rnarkets versus European markets as the region was dealing with the impacts of visitor safety and highly publicized crirnes against tourist. Visitor satisfaction levels continued to decline during this period with a corresponding decline in their likelihood to return. Consumer and trade research in major rnarkets also showed that key competitors for both leisure and convention business were perceived as offering a better product with a higher value. In addition, there was a perception that our cornpetitors were offering newer products and better service. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 4 Another concerning trend was our continued competitive disadvantage due to the significantly larger sizes of advertising budgets of many of our competitors that were outspending us, most notably the Caribbean region as a whole and rnany of its components. Miarni's advertising budget was also lagging behind several in-state destinations. Four primary goals were established in the final report of the VIP: 1. Maintain and Grow the Visitor Industry. 2. By Working Together. 3. Provide a Friendly, High-Quality, Safe Experience. 4. In a Unique Tropical, Cosmopolitan Setting. As outlined in the full report and highlighted in the Executive Summary, a nurnber of specific initiatives were recommended. They included, by Goal Area: . Seeking passage of an additional 1% Food and Beverage Tax to significantly increase the GMCVB's advertising budget to competitive levels. . Develop a new positioning and rnarketing therne. . Expand cooperative marketing programs. . Improve communications with the public. . Review where and how public funds from industry taxes are currently being used. . Form a special Task Force to work with South Dade and Key Biscayne on continuing post Hurricane Andrew recovery efforts. . Develop strategic alliances with other cornrnunity groups such as the Beacon Council and the newly formed Coalition of Dade County Chambers. . Improving the quality of the visitor experience including service/hospitality, transportation and safety. . Assist existing attractions/appeals with support for improvernents and expansion plans. · Develop multicultural and ethnic neighborhoods and appeals. · Maximize opportunities for tie-ins with the arts and special events. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 5 Goal: Outcome: Goal: Outcome: Goal: Outcome: Goal: Outcome: Goal: Outcome: Update On Goals Stated/Overview 2004 Seeking passage of an additional! % Food and Beverage Tax to significantly increase the GMCVB's advertising budget to competitive levels. There has been no successful implementation or resolution as to passage of additional dedicated resort taxes in support of destination marketing and promotion. Develop a new positioning and marketing theme. The Bureau adopted a new position and marketing theme in 1997 that took advantage of the destination's unique positioning as one of the world's only "tropical" yet "cosmopolitan" destinations. The current advertising program expands on the foundation of this therne capitalizing on the aspirational characteristics of the visitor experience with images and strategies focused on the destination's "high value" target audience. Expand cooperative marketing programs. Since 1994, the Bureau has launched a number of cooperative advertising programs both leveraging traditional placed advertising in consumer and trade publications as well a as number of strategic alliances with several industry partners including tour operators, airlines, credit card cornpanies and car rental agencies. In 1999, the Bureau launched a major "surnmer cooperative" program designed to leverage dollars with industry partners at the most critical period of the year including a formal cooperative menu for member partners to participate in. The prograrn has averaged approximately an additional $2 rnillion leveraged with GMCVB advertising each year since (with the exception ofFY 01/02, when a total of $5.2 million was generated cooperatively as a response to 9/1 I). Improve communications with the public. The Bureau conducted a "Tourism is Everybody's Business" campaign in response to this goal, including a very successful PSA campaign featuring local ambassador Nestor Torres. Even though a number of continuous programs designed to communicate with Bureau constituent groups exist (news coverage of the success of the industry and related events, newsletters, on-line communiques, etc.) there remains a significant opportunity for expansion in this area - especially with the public at large. Review where and how public funds from industry taxes are currently being used. No formal or collaborative process for this review has been implemented by the Bureau, the industry or the public sector. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 6 Goal: Outcome: Goal: Outcome: Goal: Outcome: Form a special Task Force to work with South Dade and Key Biscayne on continuing post Hurricane Andrew recovery efforts. The Bureau secured an EDA grant in partnership with the Beacon Council in 1993 to support an initiative designed to focus on this goal. A cornprehensive program was executed assisting in the reintroduction of the South Miarni Dade/Key Biscayne cornmunity including promotional brochures, video and targeted advertising. Develop strategic alliances with other community groups such as the Beacon Council and the newly formed Coalition of Dade County Chambers. The Bureau has enjoyed a partnership with the Beacon Council, the ongoing work of the Coalition of Chambers, as well as working directly with over 33 chambers, associations, and non-profit groups. The Bureau and the Beacon Council have conducted a number of joint sales missions, co-hosting familiarization tours and special events as well as occasional cooperative advertising efforts. There remains an opportunity for growth in this area as well as coalition-building opportunities within these groups for destination rnarketing, service training and joint membership services. Improving the quality of the visitor experience including service/hospitality, transportation and safety. There have been a number of significant accomplishments in this area, most notably new and improved legislation and monitoring of the quality of the taxi cab industry and a continuation of the reduction of crime statistics related to the visitor industry and this community over the past decade. The Greater Miami and the Beaches Hotel Association organized the Volunteer Education Service Training Trust (VESTT) in 1995. At its conclusion in 1998, the prograrn had interacted with over 10,000 employees in our local hotels. The VESTT Program was then incorporated by the Greater Miami Chamber of Commerce, and in subsequent years, a specially designed "train the trainer" manual was created to support hotels and to cornplement in-house and corporate training programs. In recent years, the City of Miami Beach and the Miami Beach VCA have partnered with the Bureau in a grass-roots industry Service & Attitude rally. The Bureau also has partnered with Miami International Airport in its comrnitment to customer service. There remains, however, the opportunity to expand greatly in this area. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 7 Goal: Outcome: Goal: Outcorne: Goal: Outcome: Assist existing attractions/appeals with support for improvements and expansion plans. There have been a number of specific accomplishments in this area including major expansions of MetroZoo and the relocation to new venues for Parrot Jungle Island and The Miami Children's Museum. There have also been a number of major expansions of arts centers and museums as well as the ongoing construction of the new Perfonning Arts Center of Greater Miami. Such "city" attractions that have evolved since 1994 include the Lincoln Road pedestrian mall. The Bureau also has played a leadership role in studying and advocating for the expansion ofthe Miami Beach Convention Center. Develop multicultural and ethnic neighborhoods and appeals. One of the most significant accomplishments in recent years has been the creation of the Bureau's Cultural Tourism Program including the creation of an in-house administrative staff assigned to facilitate the program. This has led to a more interactive relationship between the visitor industry and cultural institutions, as well as the continued emphasis on multicultural and heritage assets such as the Bureau's recent Heritage Guide and a new tour guide training program in partnership with Miami Dade College. Maximize opportunities for tie-ins with the arts and special events. A fundarnental objective ofthe Bureau's current advertising and public relations programs revolves around the promotion of special events held in this community. This includes a number of on-line and collateral materials designed to educate visitors and potential visitors alike. The Bureau's current primary sales and advertising program for the key months of the Summer/Shoulder - Festival Season, has at its heart this objective. In the coming sections, several of these goals are revisited and expanded upon. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 8 II. Audit & Research Reports - Summaries, Outcomes and Vision Brief Summaries 1. Marshall Murdaugh Marketing and CSL International, Greater Miami Convention & Visitors Bureau - Performance Review and Evaluation November 18,2003. Retained by Miami-Dade County to assist in evaluating the operations of the Greater Miami Convention & Visitors Bureau (GMCVB). The objective of the study was to: "Independently assess the effectiveness of GMCVB Operations in serving its public sector partners, Miami-Dade County and cities ofMiarni and Miami Beach." The study incorporated the collection of significant amounts of data, outreach to individuals and organizations within the community, and the development of recommendations that could have a significant impact on the ability of the GMCVB to promote convention and tourism activity for all stakeholders and within all sectors of the Destination. 2. Economics Research Associates (ERA) and Tourism Development Associates (TDA) were retained by the City of Miami Beach to assess the structure ofthe GMCVB and its relationship to the City. The final report was submitted March 5, 2004. The team analyzed substantial amounts of research and interviewed stakeholders to generate its final report. A five-fold charge was required by the City of Miami Beach which was fully addressed in the ERA report. Recommendations were made for GMCVB best practices to optirnize marketing and promotion results for the City of Miami Beach. 3. Ernst & Young (E&Y) was engaged by the Greater Miami Convention & Visitors Bureau to assist in the Strategic Planning Exercise. The team was retained to provide analysis of Miami as a destination, competitive markets, and visitor demand. As part of the Strategic Planning Exercise, the team identified target markets, brand positioning and marketing strategy. They also identified product enhancement opportunities and recommended further research initiatives. The team's activities included interviews with GMCVB representatives, lodging, attraction, and convention representatives. A series of syndicated research was purchased to assist in the analysis in collaboration with Yesawich, Pepperdine, A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 9 Brown and Russell (YPB&R). The team also conducted a strategy workout to discuss their findings, observations and conclusions. 4. GMCVB Executive Committee Retreat. In March 2004, the Greater Miami Convention & Visitors Bureau gathered for a two-day retreat. The purpose of the retreat was to analyze and evaluate the GMCVB audits from Marshall Murdaugh Marketing and Economics Research Associates plus the Strategic Planning Exercise from Emst & Young. After evaluation and discussion, the Executive Cornmittee determined key priorities and defined tasks for GMCVB staff to complete and to publish a GMCVB Strategic Plan for 2005 and beyond. A Shared Vision: To Be Arnerica's Premier Tropical, Cosmopolitan Destination 10 Summary of Findings and Recommendations from the Audits and Planning Phase Including Trend Analysis and Research Findings. A. Marshall Murdaugh Marketing and CSL International The Process: The study incorporated the collection of available data, outreach to individuals and organizations within the comrnunity, and the development of recommendations that could have a significant impact on the ability of the GMCVB to promote convention and tourism activity for all stakeholders and within all sectors of the Destination. Key tasks included assessing the GMCVB's: . Strengths, weaknesses, opportunities and challenges. . Performance against stated goals and work plan and position when compared to similar organizations. . Areas of irnprovernent and recornmendations. . Quality level of sales, marketing, custorner service, adrninistration/management and support services. . Research's impact on initiatives and available resources. . Measurement and Perforrnance reporting. . Ideal model/structure to provide optirnal public relations, sales and marketing efforts. . Operations relative to industry standards. . Marketing and Promotion efforts. . Impact should a separate entity be created to promote just Miami Beach. Key Findings: . Annual increases in GMCVB funding have not kept pace with the competition which may be affecting the organization's ability to build brand awareness and motivate convention and leisure travel business. . The current funding arrangement between Miami Beach and the GMCVB does not provide funding increases commensurate with tourism increases. . Motivated by budgetary limitations, GMCVB has kept down costs on salaries and wages which could negatively affect overall performance. . GMCVB's competent staff produces significant work volume while remaining professional and exhibiting high ethical standards. . GMCVB responds well to changing conditions. . GMCVB has doubled advertising budget through successful partnership programs. . Miami is the umbrella brand. Other cities and municipalities should be used as descriptor assets. Recommendations: 1. Funding of GMCVB: Annual increases in GMCVB funding have not A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 11 kept pace with the competition. GMCYB rnay be falling behind in its ability to build brand awareness and motivate convention and leisure travelers to the destination. . Restructure the funding arrangement with Miarni Beach to keep pace with the Destination's growth. 2. Advertising and Marketing: . Use one rnarketing organization for the Greater Miami area to maximize and centralize consurner branding and destination message. . Conduct research including Strengths/Weakness Analysis with the Miami customer to pretest and validate advertising plan. . Create a new mission statement. . Develop and implernent an integrated annual marketing plan. . Independently evaluate and compare the Web marketing prograrn with cornpetitive Bureaus for both functionality and ability to drive travel decisions. . $500,000 budget should be devoted to worldwide Public Relations plus hire a top tourism PR firm. . Launch a new cornrnunity-wide branding campaign. 3. Operations: . Execute internal rnonthly and annual marketing reports. . Institute a monthly Miami Tourism Barometer, plus national tourism comparative analysis. . Overall evaluation and retum-on-investment reporting for all marketing efforts. . Develop a value statement demonstrating GMCYB's return on investment. . Expand the stafftraining prograrn to include marketing sales leadership. . Implement a periodic operational performance assessment. . Have the department of Finance and Administration provide independent validation of GMCYB performance. 4. GMCVB Board: . Should be more proactive in govemrnent relations. . Restructure based on industry best practices. 5. Staff: . Create published sales and marketing procedures and manuals. · Change sales compensation to elevate sales staff recognition. 6. Convention Sales: · Hire a third party telernarketing sales firm. . Solicit major international conventions. · Initiate a new marketing agreement with Miarni Beach Convention Center. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 12 . Create a formalized convention development fund; analyze why convention business is lost. . Enhance convention service by benchmarking and analyzing future conventions. . Develop an operation plan for the proposed visitor center. 7. Membership: . Expand membership especially in the restaurant category. . Mernbership needs assessrnent survey implemented. 8. Community: . Implement a cornprehensive public affairs plan to include custorner, community, and stakeholder relations and crisis management plans. Research: Marshall Murdaugh Marketing executed a focus group covering discussion questions about Greater Miami's strengths, weaknesses and challenges, how to maximize opportunities to achieve greater results for the future, and whether the GMCVB responds effectively to strengths to maximize visitor levels. The focus group was made up of approxirnately 35 senior community tourism industry leaders. 1. Focus Group to discuss Miami's strengths, weaknesses, and challenges: . Destination Strengths include: Varied and diverse attractions; South Beach; community is tolerant of diversity; sophisticated; electric atmosphere; nightlife and dining; weather; beach; brand. The Destination's strengths are vast and diverse. And, the destination's strengths transcend governmental boundaries. Visitors to the area are most successfully motivated when outreach appeals directly to the visitor's individual desires. . GMCVB Strengths include: highly ethical and fiscally responsible; successful at leveraging private sector marketing dollars; proactive crisis management; the organization's ability to generate incremental additional visitation; the organization's active role in major events; focus on niche marketing. Focus group participants offered positive perceptions about the GMCVB's ability to generate incremental visits to the area, ethical integrity, proactive role in rnany areas and its ability to successfully leverage public dollars to generate private sector contributions. . Infrastructure Weaknesses: Roads; taxis; public transportation interconnect; airport visitor inforrnation; signage (way-finding); parking; crime perception; lack of low cost carriers to rnarket. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 13 . Visitor Industry Resource Weaknesses: Hotel/restaurant custorner service; language barriers; poor convention hotel block; condition of Miami Beach Convention Center. . Perception Weaknesses: Two tourism seasons (January-April and May-December); convention competition. Participants honed in on not providing a "visitor-friendly environment" because of infrastructure and service weaknesses. The group cited poor way-finding and internal roadway transportation, parking lirnitations, a lack of inforrnation outlets and low-cost carriers, and inconsistent customer service at hotels and restaurants. . GMCVB Weaknesses: Limited funding for competitive marketing; no clear destination identity; leadership and industry fragmentation; community doesn't appreciate tourists; lack of political support; short- term nature of GMCVB funding structure. The GMCVB's inability to consolidate its role as the primary rnarketer for the convention and visitor industry was identified as the organization's greatest weakness. GMCVB performance may be undermined by lack of appreciation for tourism by the community and governmental leaders. This lack of appreciation could be undermining the Bureau's effectiveness in interacting with governrnental stakeholders. Likewise, the current funding structure used by Miarni Beach works against long-term strategic and budgetary planning, both of which are necessary for optimal Bureau performance. . Challenges include: Increase drive rnarket; increase pre and post- cruise activity; fill the significant increase in hotel capacity; sustain gay/lesbian market; address politics and member in-fighting; improve Miami Beach Convention Center; address visitor industry infrastructure; improve Internet marketing; sustain competitive GMCVB budget; address stakeholder needs. Addressing political and member in-fighting is a critical challenge. Strategic improvement recommendations to the Miami Beach Convention Center should be followed. Other areas that need to be addressed are consistent GMCVB funding strearns, opening dialogue for stakeholder issues, improving the Destination's internet marketing and improving visitor appeal at the Airport. . Opportunities include: Regional marketing program (include other cornmunities in S. Florida); identify GMCVB as lead marketing agency for the Destination; train and educate visitor industry employees; plan to improve the visitor industry infrastructure; improve niche/seasonal marketing; empower the GMCVB through dedicated funding stream with longer-terrn comrnitrnents. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 14 2. Benchmarking and Comparative Analyses Benchmarking cities: Anaheirn, CA, Atlanta, GA, Boston, MA, Charlotte, NC, Dallas, TX, Houston, TX, New Orleans, LA, Orlando, FL, Philadelphia, PA, San Antonio, TX, San Diego, CA, San Francisco, CA, Tampa, FL, Washington, DC. . Comparison of overall budget rank: Orlando has the largest operating budget of the group at $39.4 million, double that of Miami. Miami ranks toward the upper end of the set reviewed. . Ratio of budget resources to hotel rooms: Report indicates that the current GMCYB budget is somewhat proportional to the capacity of the hotel industry. If geographical and political diversity were also taken into account, the results rnay be different. . Ratio of budget resources to convention/trade show space: Miami's resoutces are about in the middle of the comparative set. San Antonio, Tarnpa, Philadelphia and San Diego operate at substantially higher resource levels. This analysis dernonstrates the resources available to effectively generate leads for area convention and tradeshow facilities. . History of budget increases: For the comparative set, Bureau funding average increases are 37 percent. GMCYB's funding increase over the past five years is only 13 percent. Only three ofthe 14 other bureaus evaluated have experienced a lower total increase in budget resources over the past five years than Miami. The report indicates that the GMCYB is not being properly funded to effectively promote and market the Destination in a competitive convention and tourism market. . Miami Beach Resort Tax collections and GMCVB funding levels: GMCYB funding has remained relatively flat while Miami Beach's gross resort tax collections have increased. GMCYB's funding must remain consistent with gross receipts in order to properly market the area. The current agreement does not allow for funding consistent with tax receipt increases. . Advertising budget comparison: Data were available for only seven bureaus. Ofthe seven bureaus, Miarni's budget was second highest after Orlando. This indicates that even during difficult times, GMCVB is maintaining a significant portion of it's total budget for advertising. . Comparison of Tourism/Convention budget allocation: Within the comparative set, Miami spends the smallest percentage (25%) on convention marketing. Murdaugh suggests that this lower budget allocation is because oflimitations with the Miami Beach Convention Center including a lack of cornmittable hotel rooms near the Center and lack of dedicated general session/ballroom space. . Comparison of total Bureau staff: Comparable bureaus have 23 percent more staff. GMCVB's staffing is cornparable to bureaus with A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 15 substantially lower annual budgets. Low pay levels pose turnover and staff quality challenges. . Staffing trends over the past five years: Only two bureaus, Miami and Philadelphia, reduced staff. Over the past five years, average staff increases have been 16 percent, or ten full-time positions. In the case of Miami, staff was reduced 20 percent, or 15 full-time positions. Without added personnel, sales and marketing efforts will eventually be impacted. . Comparison oftotal tax on hotel rooms: Miami's 13 percent tax rate ranks toward the lower end ofthe rnajor market set. This may indicate there is room for a rnodest rate increase with the funds dedicated exclusively to maximizing room night generation. B. Economics Research Associates (ERA) and Tourism Development Associates (TDA) The Process: The team analyzed substantial amounts of research and interviewed stakeholders to generate its final report. Five-fold charge was required by the City of Miami Beach: I. Review and assess the current GMCVB governance, structure, processes and overall operations. 2. What type of model/structure should exist to provide the services necessary to achieve the optimal public relations and sales and marketing efforts to enhance the City of Miarni Beach's tourism and convention industries. 3. Compare and provide a comprehensive report on GMCVB operations relative to industry standards. 4. Evaluate and recommend strategic approaches for the City of Miami Beach to meet marketing objectives identified in the Market Assessment, including targeting, positioning and communicating. 5. Assess adverse/positive impact as a result ofGMCVB's efforts to rnarket Greater Miami versus Miarni Beach only. Evaluate how those efforts irnpact and maximize the assets and attributes of smaller communities through broad destination-wide sales and marketing approaches. Formulate recommendations for increasing overall effectiveness that unify and consider all stakeholders, creating a collective atmosphere in which to promote Miami Beach as a premier convention and tourist destination. Key Findings: . The GMCVB's governance, structure, processes and overall operations are perforrned professionally and effectively. . The relationship between the City of Miarni Beach and the GMCVB has deteriorated. Poor communication could be the cause. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 16 . Governance - the City of Miami Beach provides one-third of the GMCVB's funding from the public interIocal partners. Representation on the board and key cornmittees is proportional to this one-third financial support. . Both the GMCVB's Board of Directors and Executive Cornmittee are more than double the average size of its peers. . GMCVB accounting practices, organizational structure, and size of membership are in keeping with its peer group. . GMCVB differs from its peer group by operating with a srnaller staff, spends less on payroll and spends rnore than average on direct promotion. . GMCVB generates less than the average funding from private sources. . GMCVB is the appropriate model/structure to maximize the City of Miarni Beach's tourisrn and convention industries. . Using one advertising agency 'for the region's marketing efforts is the optirnal model. . The City of Miami Beach can gain the most leverage on its marketing investment by working through the regional bureau. . "Going it alone," independent of the GMCVB, will have an adverse impact on the Miami Beach economy. . Miami is the brand identity for the region. Recommendations: . A Strategic Plan with shared goals and objectives could help in improving relations. The Strategic Plan should include: target rnarkets for attracting visitors; position the various Greater Miarni (and Miami Beach) tourism products within the field; suggest what new tourism and convention products to develop; prioritize improvements in the tourism infrastructure. . Set a formula-based contribution with a long-term agreement to provide funding to the GMCVB. . Let the GMCVB pursue its mission of marketing all of Greater Miami to the larger world. . Reduce the size of the Executive Committee to give each remaining member greater influence. · Rather than expect the GMCVB to undertake specific City of Miami Beach initiatives, the City should identify the programs that would remain under the full control of the City and would be in addition to GMCVB activities. . Adopt the Intemational Association of Convention and Visitor Bureaus (lAC VB) Board set of standards for evaluating the GMCVB's performance. · To irnprove communication, assign one person at the City of Miami Beach and the GMCVB to cornrnunicate directly with each other. · Additions to Existing Research - cross-tabulations from existing research tools are requested including: convention vs. leisure visitors; breakout A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 17 boutique hotel stay; expand media preferences; income; international market; High-Value Customers. . New Research - Opposition research; conversion studies; non-converted travelers. C. Ernst & Young (E&Y) with Yesawich, Pepperdine, Brown & Russell (YPB&R) The Process: The context for the strategic planning exercise included a GMCVB planning session and strategy recommendations discussion, review of existing research, interviews with market stakeholders and representatives in selected competitive destinations, and consumer interviews with individuals interested and not interested in Miami. Key Findings: Regional Assessment: . Results of destination assessment surnmary matrix. . Results of demand segment analysis (leisure, corporate, group). Competition: Among adults interested in visiting Miami, key Sunbelt leisure competitors are Key West, Orlando and Ft. Lauderdale. Other Sunbelt destinations of interest are California and the Caribbean. The Caribbean poses formidable competition since 87% of visitors interested in visiting Miami are also interested in visiting the Caribbean. In rank order, Orlando, Atlanta and New Orleans are primary convention business competitors, while Ft. Lauderdale and Tampa represent secondary competition. . Orlando's strengths are that it is a more convenient drive-to destination, has air access on low fare carriers which reduces the cost of getting to the destination, web site offers vacation packages and planning services, positive visitor experience at the airport. However, Orlando does not have the beach nor is it a cosmopolitan metropolis, both of which benefit Miami as a destination. . Ft. Lauderdale is making significant improvements including those at the seaport and airport. Low-cost carrier access offers an alternative to traveling into Miami. Recent service enhancement programs have been performed and the convention facilities have recently been expanded. The destination's weaknesses include a lack of intemational flights and a lingering Spring Break image. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 18 . Key West competes with Miami for a niche of the leisure segment especially among drive-to and gay visitors. According to D.K. Shifflet, when compared to key leisure and convention cornpetitors as a destination (Orlando, Ft. Lauderdale, Las Vegas and New Orleans), Miami received lower ratings for overall satisfaction, value for rnoney, overall satisfaction with accommodations, and service satisfaction with accornmodations. It was also rated low by visitors who took a getaway weekend or a general vacation. Miarni was rated the highest of the competitive group by visitors who came to Miami to visit friends or relatives. Visitor Demand Research: According to original research conducted by YPB&R, the following trends were noted: . Leisure travelers interested in visiting Miami have some college education, have children who are under 18 years old, are white non-Hispanic and live in metropolitan areas. . Among those not interested in visiting Miami, over 40% are not interested because of the perception of crime; other reasons are because the destination is perceived to be overpopulated, and too hot and humid. Only 10% are not interested because of the destination's diversity. . Of particular concem, 69% of those not interested in Miami have already visited. More recent visitors are more predisposed to revisit Miami. . Miami's highly desirable attributes are: beautiful scenery; offers fun/exciting experiences; the beach; its tropical/cosmopolitan atmosphere. . Three-quarters of leisure travelers interested in visiting Miami use the Internet to obtain travel information or make travel reservations. . Target rnarket (geographic) - 48% are international, 52% are domestic (70% out of state, 30% in-state). . Target market (dernographics) - 25-54 adult, $75K+ household income (skewing to $IOOK+), the strong majority are white non-Hispanic couples or married, and are college graduates. Twenty-one percent are families. Five to 10 percent of the couples are gay. About one in five come from diverse ethnic backgrounds. This situation provides a sound foundation for a diversity marketing program for the destination. D.K. Shifflet research indicates that 50% of the domestic market arrives by car. This contradicts the GMCVB intercept surveys that indicate nearly 96% of visitors arrive by air. Recommendations: 1. Brand Positioning · Recornrnend "A Thriving Tropical Metropolis" as the evolution of the Tropicool brand. Miarni is the only major u.S. city that corn pares with New York and Los Angeles as an urban vacation destination. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 19 This brand evokes urban sophistication, and a multicultural tropical vacation experience. . Create Miami as the umbrella brand. Within the brand architecture, Miami's communities should be treated as the sub-brands. 2. Product Development Initiatives . Improve way-finding and brand environmentalism (support beautification efforts around the Performing Arts Center, development of pedestrian-friendly waterfront corridor and implementation of Miami River Commission recommendations). . Become a first-class meeting destination by expanding Miami Beach Convention Center to include a banquet hall and integrating into Lincoln Rd. Mall. Execute a MBCC headquarter hotel study, beautify the Washington-Collins Avenue corridor and improve Bay-link transportation. . Improve Miami Knight Center consistent with CSL Study. . Demolish Coconut Grove Expo Center, analyze other potential uses. 3. Attraction Enhancement . Create a branded city pass to include transportation and admission to sites. . Seaquarium - relocate park and enhance waterfront activities. . Miami Beach - more public beach access, enable pedestrians to see the ocean. . A new baseball stadium is not a major priority. 4. Service and Value Perception Enhancement . Create a service quality Task Force to develop a service grogram (Ft. Lauderdale's branded service program is SUNsational T ). . Miami International Airport Task force to keep expansion focused on customer needs and making the facility customer-friendly. 5. Marketing Strategy Initiatives . Use dedicated marketing funds to address the needs of the primary markets and co-op funds for vertical markets. . Create a pool of incentive funds specific to attracting meeting and convention business in order for Miami to remain competitive. . Re-allocate advertising funds. Current advertising levels are insufficient to sustain meaningful presence in media. 2002/2003 advertising expenditures declined 32 percent from 200\12002. o Increase trade media 20%. o Increase online advertising and merchandising to at least 20% of total. o Allocate available advertising funds to broader target market. o Allocate future advertising funds to vertical markets. o $750,000 for additional trade advertising (international). A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 20 o $2 million additional for television advertising in key domestic markets. o $500,000 additional for online media and Internet. o More money for advertising production to support media expenditure. o Off season marketing devoted to vertical markets. o Consider promoting other available activities such as nature and sporting experiences. 6. Integrated Promotional Strategy . Review and update sales promotion and collateral. . Refocus publicity and public relations programs to counter crime perception. 7. E-marketing Initiatives . Enhance GMCVB website, drive visitors through Miami into communities. . Review URL and explore alternate addresses. . Enhance website interface and design to be more interactive and destination-driven. . Review booking tools. . Ensure brand control and consistency (online message consistent with off-line communication). . Keep content fresh. 8. Research Initiatives . Use D.K. Shifflet to track visitor profiles and Synovate intercepts for guest activities. . Implement measurement programs for: actual advertising performance (copy testing); awareness testing; cost per inquiry tracking analysis; and semi-annual conversion studies. . Execute semi-annual Destination Awareness, Interest and Perception Research. . Execute annual meeting planner and travel agent research. . Execute tourism economic impact research. 9. GMCVB Sustainable Funding . Create a task force to explore alternatives to current funding protocol that provides for predictable and sustainable funding over the long term. This will enable the Bureau to better plan, implement and evaluate multi-year programs. Recommendation Additions: . Cultural Diversity Program Development. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 21 . Expand GMCVB presence in vertical markets (spa and gay). . Conduct analysis of other high-interest Sunbelt destinations. D. GMCVB Executive Committee Retreat The Greater Miami Convention & Visitors Bureau Executive Committee gathered for a two-day retreat in March 2004. The purpose of the retreat was to analyze and evaluate the GMCVB audits from Marshall Murdaugh Marketing and Economic Research Associates, plus the Strategic Planning Exercise from Ernst & Young. After evaluation and discussion, the Executive Committee determined key priorities and defined tasks for GMCVB staff to complete and to publish a GMCVB Strategic Plan for 2005 and beyond. The Executive Committee reached a consensus on the following priorities to be addressed in the GMCVB strategic plan: . Find ways to attract more private sector funding over and above membership dues. . Create a public funding model that correlates with and provides for GMCVB funding as tourism dollars increase. In particular, a formula for shared resort tax monies should be fully investigated. . To address improving community affairs, explore adding a position of Senior Vice President of Public Affairs at the GMCVB. . Better inform the public ofthe GMCVB's economic contribution to the Greater Miami community. Increased tourism directly contributes to local and state taxes and increased jobs, which in turn improves the quality of life of Greater Miami residents and individual communities. . A strategic plan will be drafted in May 2004 with a final document published by mid-July 2004. The Bureau will develop the plan with input from select consultants, strategic alliance partners and all stakeholders. . Goals for the Greater Miami destination will include: I. Minimize the effects of seasonality. 2. Expand market base. 3. Expand and improve the quality of the Miami Beach Convention Center. 4. Eradicate negative visitor and resident perceptions of the destination. 5. Improve the product of the destination. 6. Continue to improve overallleveJ of customer service. 7. Improve the "Attraction" infrastructure. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 22 8. Identify and grow customers' value proposition. 9. Implement an ongoing community-based education program promoting the value of tourism. 10. Improve way-finding. I I. Define the stakeholders and increase stakeholder base. 12. Retain market share and keep the repeat visitor. 13. Improve the marketing of our submarkets. 14. Include residents in the marketing of the destination. 15. Explore methodologies along with the destination's capacity to increase overnight visitors by 5- I 0% every year, for the next three years. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 23 III. Sales & Marketing Strategies to Produce Desired Outcomes Convention Sales Mission Statement: The mission of the Convention Sales Department is to serve as the community's convention, trade show and meeting development marketing arm, aggressively marketing Convention Centers and hotels and generating economic growth through convention development and roorn nights booked, while building total meetings business for the city as a convention destination. Current year achievements will be updated at the end of 2004 and will include definitive statements quantifying: . Conventions booked by year-end, number of room nights generated and economic impact in future dollars. . . 2004 major citywide convention bookings for the Convention Centers and the community and estimated roorn nights. . 2004 total hotel bookings and total room nights. . Details of how the Convention Sales Department sold the community in 2004 through other marketing activities including trade shows, conventions and sales forums, sales missions conducted, clients hosted on major destination familiarization reviews and site inspections conducted. . Details of2004 partnerships with key industry associations. · Details of 2004 convention developrnent funds used to book and develop new accounts and accounts in transition. . Industry publication awards received. . 2004 details of planned and executed sales blitzes and resulting leads. Situation Analysis: Convention Sales Situation Analysis will be detailed during the GMCVB's budget and goal-setting process in the 3rd and 4th quarters of2004. As applicable, detail will be provided on: · The Convention Center was built to attract the lucrative convention, trade show and meetings market. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 24 . The percentage of the Center's total business that trade shows, conventions and public shows represent. . The total nurnber of first-class hotel rooms that Miami currently has and the projected committable room base. . The Convention Sales Department will continue to aggressively target trade show/convention business while generating corporate, association, labor and social group leads for the hotel community and convention center. Marketing goals, objectives, tactics and competitive factors will be outlined in this plan. . Factors influencing our aggressive sales approach include the construction of new attractions, shopping, dining and entertainment options, as well as the increase in the room inventory. This will help support citywide conventions and drive renewed interest in the destination. Convention Sales Goals Convention sales goals will be determined during the GMCVB's budget and goal-setting process in the 3rd and 4th quarters of2004. As applicable, detail will be provided on: . Convention and trade show bookings and confirmations, the resulting room nights and the anticipated results comparison to 2003/04. . Bookings of meetings and conventions for hotels, the total room nights and the anticipated percentage increase over 2003/04. . Annual bookings, room nights, number of attendees and revenue totals from delegate spending, plus gross square footage used. . Lead generation goals through the Washington, DC office. . Solicitation ofIndustry-related convention and meetings in the trade show and convention market, tourism market and communications field. . Conduct special projects to generate leads for the Convention Centers and hotel community during off peak and shoulder season. . The Convention Sales staff will implement a plan to join committees and boards of key industry organizations. This will heighten the city's exposure to clients, as well as create an equal professional plane, which will help build relationships that will develop into leads and bookings. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 25 . Convention Sales will continue to develop superior communication with city hotels and other key business partners. . Produce new promotional material enhancing the brand to promote the destination's hotels and the Convention Centers. . Explore relationships with representative firm(s) that specializes in producing new contacts and helps to generate leads for trade shows at the Convention Centers. . Explore relationships with a hotel telemarketing organization to generate leads for the hotels. 2004 Convention Sales Objectives Objective One: Increase long-term bookings of conventions, meetings and trade shows for 2004 and beyond for the Convention Center and citywide hotel business. Book and confirm such commitments, generating a specified number of hotel stay nights aRd Convention Center square footage usage. Strategy 1: Generate Convention Center leads (totaling an estimated number of room nights) by targeting cities in select geographic areas and businesses in key categories. Trade show companies, associations and corporations are a prime source of new business in these lucrative markets. Target meeting, convention and trade show business that will use peak room nights and a minimum of gross square feet to fill the Convention Center and support growing room inventory. Tactics: . Generate communications via telemarketing contacts and e-mail. . Conduct sales missions generating personal sales calls. Individual sales managers will be assigned missions in their respective markets. . Increase exposure to the destination via site visits. Marketing efforts are targeted at producing site visitations by individual decision-makers, boards of directors, site committees, trade show management teams and key exhibitors. Comprehensive tours of the Convention Center, marketing partner facilities and the city are aimed at stimulating interest and securing commitments. . Participate in industry trade shows, conventions and sales forums. The Action Calendar details the department's schedule of industry conventions and trade shows. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 26 . Work directly with SMG's corporate offices to identify top corporate customers and major trade show companies to market the Convention Center. . Use Internet marketing to send quarterly messages and images of the destination to target prospects and current customers frorn our database. Strategy 2: Continue to generate excitement about new city developments by participating as a destination at major trade shows and meetings and by continuing our aggressive convention destination familiarization review program, sponsorships at industry functions, conducting small dinner destination events and taking our showcase events on the road to tell the destination's story. Tactics: . Host exciting destination reviews corresponding with special events and mini-familiarization tours for prospective buyers to showcase the Convention Center and surrounding area. . Sponsor two industry chapter luncheons and events to showcase Miami and its regional attractions, Convention Center and hotels. . Conduct showcase events in key target cities. . Organize and implement sales blitzes. . Sponsor events at key industry annual conventions or trade shows in which we will be able to spotlight Miami. · Conduct small dinner programs by hosting 10 to 12 clients in key cities to update them on Miami's new developments. Strategy 3: Continue to target major multi-management and trade show companies which represent a significant number of organizations that can generate new business for the Convention Center and individual hotel properties in order to support the increasing hotel inventory. Tactics: · Continue to solicit multi-management and trade show companies to host their executive management retreat meetings in the Convention Center. · Solicit the three major third-party companies - Conferon, Conference Direct and Helms Briscoe - and make presentations and participate at their trade shows. The Washington, DC office will cover Washington, DC, Virginia and Maryland. All other states will be covered by a salesperson for each of these three third-party companies. Strategy 4: Utilize convention development funds to defray operation costs or to assist in marketing efforts for conventions and trade shows, particularly those with strong growth potential. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 27 Tactics: . When appropriate, negotiate funds to offset costs associated with a major citywide convention using the Convention Center. . When appropriate, negotiate Convention Center waivers. These waivers will help book organizations for citywide conventions that will fill hotel rooms. Strategy 5: Advertise in key trade publications to position Miami, highlighting new developments that will draw attendees for trade shows and conventions. Tactics: . Advertisements will be placed in select industry publications. . Advertise in selected local chapters of industry organizations such as PCMA Washington, DC. . Work with Communications Department to develop media publicity approaches. Objective Two: Continue to develop short-term business opportunities next year and beyond, targeting corporate and association meeting planners with short-term meeting needs by confirming hotel convention bookings. Strategy 1: Position Miami as a premier meeting destination by highlighting site benefits through an Internet-based RFP program. It is estimated that hotel sales leads for 2005 will exceed last year's numbers by _% with more than _room nights, at an estimated conversation rate of %. Tactics: . Use the e-mail blasts to promote value periods and hotel availability. These e-mails will be sent to a database of corporate, state and regional association meeting planners on a monthly basis. The database will consist of past Internet RFP users and members of various meetings organizations. · Develop a quarterly newsletter to be e-mailed to all Internet RFP customers that will update them on community developments and other news. The list of hot dates will be included with this e-mail. Strategy 2: Advertise in key trade publications to impress upon corporate, regional and association planners new developments promoting short-term hotel and Convention Center business. Tactics: . Place ads in industry publications. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 28 . Use testimonials from previous meeting planners who have used the Meetings Express program. . Place ads in local chapter newsletters and on the websitc to generate regional business. . Work with Communications to develop new advertising and publicity. Strategy 3: Target select major cities for corporate, union and association meeting and convention center business. Tactics: . Use showcase events to help generate short-term hotel and Convention Center business. . Conduct a small dinner program by hosting 10 to 12 clients in key cities to update them on new developments. Objective Three: Maintain and confirm a defined number of annual long-term Convention Center bookings of conventions, to generate a defined number of room nights and projected number of attendees resulting in _ delegate spending. Strategy 1: Maintain and strengthen relationships with annual citywide conventions and trade shows that have made the Convention Center their home. Solicit their input to identify industry- wide trends and suggestions for making Miami more of an attractive convention destination. Confirm the room nights produced for public shows to generate a target total of hotel room nights. Tactics: . Host an annual Advisory Board meeting. This group is made up of annual clients and other top industry trade show and meeting executives. . Maintain relationships for endorsements, testimonials and promotional opportunities. Objective Four: Produce new business through the Washington, DC office. We will determine the Washington, DC sales office's projected number of leads for 2004 and beyond representing a defined num ber of room nights. Strategy 1: The Washington, DC sales office will accomplish these sales objectives through personal and telephone sales, existing accounts and prospecting for new business sources. The DC office will do extensive networking at Washington, DC industry events. The sales staff in DC will participate with Miami clients on City familiarization trips and send clients for individual site inspections. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 29 Tactics: . Conduct in-person sales. . Generate client contacts through e-mail and telephone to existing database accounts and new prospects. . Attend monthly meetings of local chapters of IAEM, PCMA, G WSAE, MPI, AMPs, SGMP and UMPS. . Participate on cornmittees of major industry organization local chapters, as well as select national level committees to heighten exposure of Washington, DC office representatives. . Represent the destination in DC marketplace trade shows, such as IACVB Destinations Showcase, GWSAE Springtime in the Park and HSMAI Affordable Meetings. . Participate in selected national meetings and trade shows where the DC client base is present, such as PCMA, ASAE, MPI and SGMP. Strategy 2: Develop and expand programs to heighten the value and visibility of the Washington, DC office to both customers and marketing partners. These programs will aid in achieving the stated office goals by increasing the likelihood for clients to contact and interact with the DC office. Tactics: . Make sales calls with the destination's hotel marketing partners upon request. . Develop relationships and make presentations to third-party companies for Washington, DC, Virginia and Maryland events. Strategy 3: Conduct small client dinners of 10 to 12 association and trade show clients to update them on Miami developments. Tactics: . Target select union meeting planners and executive officers for dinners and luncheons. Objective Five: Solicit key convention and tourism industry conventions and trade shows. Strategy 1: Bid on key industry convention and tourism industry annual, mid-year and leadership conferences. Bringing these key industry conferences into Miami provides an opportunity to showcase the destination, Convention Center and the city's development and area attractions. These organizations will produce other meetings, trade shows and conventions. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 30 Tactics: . We will detail the business we will be bidding on. Objective Six: Conduct special projects to generate leads for the Greater Miami hotel community during off peak and shoulder seasons. Strategy 1: Assign specific projects to Convention Sales staff to increase lead generation. Tactics: . Continue to use the "Miami Magnet" program - or Miami convention industry ambassadors - to draw attention to local/state associations for their support on national convention bids. . Organize and execute a telephone sales blitz targeting all market segments both regionally and nationally. This program will incorporate hotel marketing partners, GMCVB and Convention Center sales staff, in a telephone blitz to produce bookings for the hotels and the Convention Center. . Target, solicit and book conventions or trade shows for the short and long term to occupy Convention Center exhibit space and peak room nights. Objective Seven: The Convention Sales staffwill join committees and boards of key industry organizations. This will heighten Miami exposure to clients, as well as create an equal professional plane, which will help build relationships that will develop into leads and bookings. Strategy 1: Convention Sales staff will attend monthly industry organization meetings and participate on organization committees and boards. Tactics: . Staff will volunteer to work on at least one committee or board of select organizations. . Each salesperson will attend at least two chapter meetings a year for select chapters of national organizations. Objective Eight: Convention development will continue to develop superior communication with the destination's hotels and other key business partners. Strategy 1: Roundtable meetings will be conducted with key hotels as well as other business partners to listen to ideas and discuss marketing opportunities. These meetings will keep key A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 31 business partners informed on the Bureau's responsibilities to the community while discussing current and future goals. Tactics: . Continue to conduct monthly key hotel business partner meetings. . Continue to hold quarterly Director of Sales business partner meetings. . Release, in conjunction with Communications and Tourism, bi-monthly faxes on convention projects. Objective Nine: Produce new promotional material to promote the destination's hotels and the Convention Center. Strategy 1: Develop and produce, in conjunction with Communications and Marketing, new branded promotional information that will have a similar look and feel, which will be used to promote the destination and the Convention Center. Tactics: . Redesign/produce a bid book for conventions and trade shows. . Redesign/produce an Internet RFP brochure. . Redesign/produce a new Meeting Planner Guide. . Reprint single hotel booklet to be used to promote the Convention Centers and hotel rooms. . Produce/redesign an Airport Passenger Guide. . Maintain an annual Convention Calendar that is easily accessible to meeting planners. Objective Ten: Work with SMG and their trade show generation organization to help produce more convention center business. Strategy 1: Work with the SMG representative with leads on trade show companies considering Miami as a prime site for trade shows. This company will help us target trade show business that can fit the Convention Center. Tactics: . Identify leads. . Work with SMG representative firm to qualify leads. . Host clients for familiarization tours. Objective Eleven: Contract with a telemarketing lead generation organization to produce hotel lead business. Strategy 1: Use a telemarketing organization to generate leads to help fill in holes for small meeting business at hotels and the Convention Center. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 32 Tactics: . Track leads and conversion rate. . Target group size and peak room nights. . Target mid-week business in August and September. . Use this process to help cleanse database. Convention Services Mission Statement: The mission ofthe Convention Services Division is to support the efforts of the Convention Sales team by facilitating the meeting planner's efforts and serving as the liaison with the community's products and services, and to enhance the meeting delegate's destination experience with the goal of increasing the likelihood the business will rebook in Greater Miami. Current year achievements will be updated at the end of 2004 and will include definitive statements quantifying: Convention Services provided support to conventions, meetings and trade shows via attendance building, registration personnel and provision of promotional materials. . Customer service evaluation rating and previous year comparison. . The number of familiarization tours, site visits and industry events that Conventions Services supported through the Program of Work. . The number of hours that Convention Services provided registration personnel to the Convention Center and hotel-based meetings and conventions. . The reservation increase produced by the complimentary restaurant reservations. The percentage of reservations placed with member businesses. . The number of shows, room nights and reservations produced by The Housing Bureau services, powered by Housing 3000. . Expanded the array of marketing materials and information available to meeting planners via our website "Planners Tool Kit." . The number of hotel meetings and conferences supported by Convention Services through the distribution of promotional materials, internet leads and event planning. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 33 Situation Analysis: The Convention Services Department is responsible for providing the highest level of customer service to positively influence first-time and rotation shows to return and insure the retention of annual clients. Convention Services is responsible for implementing Bureau events, industry related sponsorships, and maintenance of all display components, which matches the responsibilities of our competitor CVB services departments. Our challenge is to surpass service levels of our competitors whose budgets, staffing levels and destination amenities exceed our own. 2004 Convention Services Objectives Objective One: Provide support to conventions, meetings and trade shows via attendance building, transportation leads and information, partner leads, event planning, spouse programs and provision of promotional material. Total number of clients served will be detailed. Strategy 1: Continue to utilize all methods to promote early awareness of key services programs through active participation with the client site visits and maintenance ofa proactive relationship with annual and first-time planners and show managers. This will assure clients a successful event and position the area as a viable convention destination. Tactics: . Provide attendance-building services for first-time shows. . Maintain a successful partnership with Convention Center event managers (SMG). . Provide promotional materials, support and amenities to shows and events annually. . Contact annual clients during the year. . Work with Sales to secure supplemental rooms for annual clients as needed. . Actively participate in pre- and post-convention meetings. . Coordinate outbound gifts and amenities. . Continue to use the Welcome Program to promote awareness through citywide signage and banners for qualified events. Strategy 2: Refine systems in place to support citywide, short-term conventions and meetings in the Convention Center and greater hotel community, thus reaching a broader base of potential repeat business. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 34 Tactics: . Include shows and events booked by the Convention CenterlSMG. . Include hotel shows booked by property sales staff. . Coordinate collection and inclusion of citywide promotional items to fulfill client requests. . Form partnerships with citywide hotel sales team to further identify and service client needs. Objective Two: Actively promote our Housing Bureau services as a viable sales option. The number of shows, room nights and reservations resulting from the department's housing support will be detailed. Strategy 1: Establish and promote a new program to provide first-year incentive to select repeat shows to introduce them to value of the Housing System. Tactics: . Identify four to five shows that match program parameters but have to date been reluctant to use the housing system. . Provide one-on-one demonstration ofthe housing system, stressing aspects that match their particular needs. . Explore options to encourage planners to utilize the housing system for a one-year evaluation period. Strategy 2: Promote new program qualification parameters to include shows and events utilizing two or more hotels. Tactics: . Promote to short-term Convention Center business booking dates within 18 months of event through partnership with SMG sales staff. . Make use of planner contact during site visits, farniliarization tours and other special events to promote awareness of the expanded program. . Actively participate with sales staff in promoting the assets of the housing program. Strategy 3: Provide superior housing service to qualified shows with our in-house software Housing System. Tactics: . Maintain open communication with planners to continually assess the program's ability to meet their needs. . Meet regularly with key hotel sales and reservations staff to address new services and property issues. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 35 . Attend industry educational sessions focusing on new developments in convention housing. Objective Three: Provide planners with professional, experienced on-site registration staffing support inclusive of computer operators, lead retrieval, show office support and booth personnel for all Convention Center and hotel shows to facilitate the show experience for planners and attendees. Strategy 1: Recruit and train qualified registrars to provide effective show support. Tactics: . Maintain a network of skilled men and women. . Conduct interview and skills assessment. . Maintain uniform inventory and distribution procedures. . Recommend and coordinate skills training. . Oversee registrar orientation. . Coordinate quarterly supervisor and annual full staff meetings. . Conduct CVB services assessment surveys. . Establish a network among industry peers through membership and participation in ACOM and other industry organizations and forums. Strategy: 2: Work directly with show management to design a viable show support schedule. Tactics: . Develop and maintain relationships with planners and property sales teams to actively promote the registrar program. . Work directly with show management during shows to make adjustments as needed. . Attend pre- and post-convention meetings. Objective Four: Effectively coordinate Bureau showcase events, familiarization tours, sponsorships and special events as directed. Strategy 1 : Meet with relevant staffto brainstorm and design events specific to their defined goals. Tactics: . Select site and coordinate all elements including menu, floral, entertainment, rooms, travel, invitation process and client participation. . Develop and manage event budget. . Establish and orchestrate event time lines. · Maintain communication among departments, SMG and partners. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 36 . Conduct pre-meeting and post-event critique. Strategy 2: Implement Program of Work Calendar and trade show activities to enable consistent, productive marketing of Greater Miami to the convention and meeting industry. Tactics: . Coordinate storage, maintenance and enhancements oftrade show booth components including roll-ups, tabletops and lOx lOs, interface with exposition companies. . Direct project management of new proposed trade show booth to include drafting RFP, interfacing with selected exposition companies and all related budgeting. Strategy 3: Maintain and distribute inventory ofthemed promotional items used to reinforce Greater Miami. Tactics: . Maintain network of qualified vendors seeking appropriate products. . Recommend and secure items. . Maintain POS inventory system. . Coordinate fulfillment. . Oversee budget. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 37 2004 Tourism Sales Objectives Objective One: Influence and educate travel planners and travel trade decision makers that Miami is the destination of choice for their clients and successfully meets their sales objectives. Strategy 1: Design and direct and annual international and domestic sales program designed to interact with and support top travel planners and travel trade colleagues targeting top producing markets as well as emerging markets. Tactics: . Identify optimum trade shows conducted in target markets in which to participate/exhibit. . Leverage the Miami message and provide cost-effective partnerships with participating mernber organizations in organizing "Miami Areas" in relevant trade shows to support business to business commerce (participated in 41 trade shows in 2003). . Organize and conduct targeted sales missions and blitzes in target markets (conducted 13 international sales missions and 40 domestic sales blitzes/missions in 2003). . Organize and conduct hosted familiarization tours to Miami providing travel planners and buyers with direct exposure to the destination and its products (hosted 50 familiarization tours in 2003). Strategy 2: Design supporting programs designed to target a variety of High-Value Customers based on creating consumer and trade awareness and demand. Tactics: . To induce and facilitate summerlshoulder travel, conduct an annual Summer Festival Season sales blitz targeting in-state and national feeder markets (33 cities blitzed in 2003). . Design and implement a Boutique Hotel Program representing approximately 100 Boutique Hotels in targeted sales blitzes as well as specialty trade and consumer shows such as film, fashion, entertainment and design events. . Design and implement a targeted Cultural Tourism and Heritage Travel Program including hosting and facilitating familiarization tours, industry presentations and collateral support. . Design and implement a targeted Gay & Lesbian Travel Program including participation in related trade shows, conferences and special events (14 programs conducted in 2003). A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 38 . Design and implement a targeted Shop Miami Program providing sales and collateral support for local shopping malls and outlets. . Promote pre- and post-cruise visitor activity, working closely with Cruise Line International Association (CLIA), the American Society of Travel Agents (AST A) and local cruise lines and the Port of Miami (hosted three CLIA conferences, two AST A Cruisefest conferences and co-sponsored annual Sea Trade event as well as 15 pre- and post-cruise travel agent familiarization tours in 2003). . Promote family travel to the destination by designing and distributing to travel buyers the annual Attractions Pass program. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 39 2004 Media Relations Objectives Objective One: Influence consumer perceptions about Miami as a fashion- forward, tropical and cosmopolitan destination of choice to the high-value customer through placement of editorial stories in a variety of consumer and travel media outlets. Strategy 1: Direct an informative, targeted press release schedule of 40 GMCVB press releases, alerts, advertorials and industry releases which reinforce the brand. Tactics: . Provide the most up-to-date, positive information to all audiences with "What's Happening" press releases on a regular basis. . Utilize press releases to highlight travel trends, events, new developments, financial news, festival information and other news in a timely, accurate and targeted fashion. Strategy 2: Reach out to key consumer travel editors, contributing editors and freelance writers who represent rnajor publications within our target markets which reinforce the brand. Tactics: . Host at least 130 travel editors/writers on a one-on-one basis throughout the year. . Host at least 17 media tours from key feeder markets, each tour themed after niche pitches and featuring multiple media. . Leverage select niche events such as the South Beach Wine & Food Festival, Calle Ocho, Gay & Lesbian Film Festival and Art Basel to bring in media to cover the destination. . Personally visit key markets to present the message and products to consumer and trade media. . Service at least 2,000 media inquiries seeking editorial, logistical and collateral support. Strategy 3: Host at least 25 production crews from major broadcast and cable networks and 10 live radio broadcasts from the destination, plus any additional promotions. Tactics: . Conduct outreach with producers and travel correspondents at national, regional and cable news programs as well as key drive market affiliates, to develop destination feature stories. . Pitch Miami coverage to locally based Latin American media giants such as Univision to assure optimum cost effectiveness. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 40 . Research and pitch syndicated and regional radio showslTV programs to broadcast live from Miami throughout the year, with special emphasis on summer visits where possible to help boost summer business. Strategy 4: Publicize and promote new developments for the community. Tactics: . Identify the key person in each company for new developments and expansIOns. . Maintain a current resource file on all new developments. . Pitch key consurner media outlets in target markets. . Provide ongoing updates to key media on destination news and developments through a series of press releases and postcards showcasing diverse "slices" of the product, from the beaches, to gaming and golfing, dancing, dining, shopping and spas (i.e. What's New release). . Work with trade media in relation to retail development, architectural development and financial issues. Objective Two: Promote Miami as the preferred venue for meetings, trade shows and public shows to increase meeting business. Strategy 1: Direct a press release program promoting meeting facilities, development updates and new tourism products to targeted meeting planner publications. Tactics: . Identify and distribute updates regularly to appropriate trade media outlets (i.e. What's New release). . Develop an evergreen press release that Convention Sales managers can use as a sales piece. . Ensure that press releases on the web site are current and accurate. . Develop advertorials for key meetings trade magazines to be used to leverage additional publicity from advertising or accomplishments. Strategy 2: Publicize and promote new developments in Miami to meeting planners through meeting trade publications. Tactics: . Identify the key person in each company for new developments and expansIOns. . Keep Convention Sales Managers current with updated What's New releases via e-mail and the web site for use with clients. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 41 . Include trade writers in media tours and sales familiarization tours, or host them for individual visits in conjunction with the Convention Sales Department where appropriate. . Approach major business and consumer media on the positive economic impact of meetings and conventions and how new developments make the city more attractive to meeting planners and attendees. Strategy 3: Provide advertorial content to trade publications. Tactics: . Work with convention development to develop specific story angles that are best suited for each publication and date. . Maintain a current inventory of advertorials regarding those story angles. . Invite key editors and writers from rneetings publications to visit Miami. Objective Three: Increase awareness of Miami as a visitor destination for the multicultural or niche traveler through targeted media placements. Strategy 1: Target the following multicultural and lifestyle markets: African-American, Hispanic, Gay & Lesbian, Family, Arts & Culture, Food & Wine, Eco-Tourisrn, Shopping, and Film/Fashion & Entertainment. Tactics: . Conduct media visits with niche publications and broadcast outlets, focusing on activities in and around areas that will interest consumers in these target markets. . Develop specific consumer travel information for each market in the press kit. . Maintain current key press releases in Spanish and other appropriate languages on the web site and paper media kits. . Where appropriate, use leaders in those areas as destination spokespeople Strategy 2: Develop and maintain multicultural press releases on the online media kit. Tactics: . Develop, distribute and post releases on the web site that target these niche areas. Strategy 3: Pitch multicultural and niche media in key markets. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 42 Tactics: . Work with the PR agency to identify and pitch key media. . Maintain updated databases of targeted media. . Provide story angles to Univision, BET, Tom Joyner and other major multicultural media as well as other niche outlets. . Host writers from key publications or broadcast media within the target markets, wherever possible tying in local events which reinforce the brand. Objective Four: Continue to update the media kit on paper and online to reflect new marketing themes and destination developments. Strategy 1: Incorporate new images and B-Roll into the online media kit. Tactics: . Work with the PR agency and PR Committee on an ongoing basis to update the media kit where appropriate. . Work with Marketing Services to streamline photography and obtain new images and footage. Strategy 2: Update the press kit contents to reflect the new branding. Tactics: . Work with the PR agency, taking media comments into consideration, to determine any changes to the new media kit on an ongoing basis. . Continue to revise or write new press releases and feature stories which reinforce the brand and cater to the various niche markets. Strategy 3: Maintain the online press kit. Tactics: · Work with the web master on an ongoing basis to make sure the kit is as updated and user friendly as possible. · Work with the PR agency and PR Committee on an ongoing basis to determine the content to include online. Objective Five: Implement an improved system of monitoring and managing clippings and media contacts. Strategy 1: Enhance the clipping management to offer more details on impressions and media value where available. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 43 Tactics: . Increase commitment with Burrelle's clipping service to include monthly clip value analysis. Objective Six: Implement media missions in key markets to pitch positive stories about the destination. Tactics: . Conduct at least 12 missions in key markets. Develop or leverage events in key feeder rnarkets and invite top media (Le. GMCVB's annual NYC media event or the recent New World Symphony performance at Carnegie Hall). . Where appropriate, partner with GMCVB rnembers to help sponsor these events and raise the profile of the destination. . Conduct individual media calls while in these cities to pitch destination updates. Objective Seven: Monitor with PR agencies and partners any issues which may impact positive publicity about the destination. Tactics: . Work with PR agency on appropriate responses to negative stories about the destination. . Work with industry partners such as Visit Florida and TIA to stay on the same message points on issues where appropriate. · Keep members informed about the GMCVB position to keep the media message unified. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 44 2004 Consumer Marketing Objectives I. Increase visitor bed tax and sales tax through optimum occupancy and highest possible room rates. 2. Continue to develop and implement a brand image. Educate high-value consumers about the diversity of the destination. 3. Enhance the GMCVB's website as an outreach, fulfillment and sales and conversion tool. 4. Develop and maintain strategic alliances for efficiency and expanded revenue/resources. 5. Collect more data about the County's market position. Primary Target: The primary target visitor for Miami-Dade County is a sophisticated, well-educated, affluent consumer who is looking for the opportunity to experience Miami's unique variety of activities and to return with stories to tell about the uniqueness of Miarni. . Ages 25 to 54, with emphasis on 25-44. . Highly educated. . Above average income. . Active lifestyle, fashion-conscious. . "High-energy Socialites." . "Tropical Relaxers." Primary Geographic Targets: 1. Northeast corridor oftheUnited States and Canada (a line drawn northward from Baltimore through Philadelphia and New York and up to Toronto). . Heavy emphasis on New York. 2. South Florida drive markets (including Miami-Dade County) for summer and neighborhood promotions. 3. International . Sophisticated cities in Latin America. . Key markets in Europe. Objective One: Increase visitor bed tax and sales tax. All programs undertaken should include an objective designed to increase ADR and occupancy performance. Objective Two: Continue to develop and implement a brand image. Educate high-value consumers about the diversity of the destination. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 45 To continue to produce the optimum program for tourism results requires the continued employment of the community-wide branding initiative that is both memorable and effective in building new destination awareness and resulting business. This marketing communications initiative will continue to strengthen the selling cycle, assisting the movement of the potential customer through the travel decision process of: . Creating positive customer awareness of the destination. . Producing stronger visitor interest. . Stimulating consumer desire. . Combating inroads from competing destinations. . Ultimately assisting in the customer's action decision to visit. The Brand: Branding or brand identity is the total sum of the words, images and associations that form the customer's perception of the destination. The brand, therefore, is the conveyed personality of the visitors' experience. It is the promise, the link, or the bridge between the customer and the visitor product. Although the GMCVB cannot be responsible or accountable for every customer's perception of the destination, it should fulfill its role as a community tourism leader in crafting a brand development program that supports the industry through a fully coordinated, effective marketing communications plan. Steps include the following (to be guided by research): . Define the Unique Selling Propositions that separate the destination from the competition. . Produce and prioritize a series of motivational messages for consumers and providers that address the positive visitor characteristics ofthe area. . Continue to craft Market Positioning that separates the destination from competitors. This program guides development of the GMCVB's array of collateral communications programs including direct mail, advertising, Web site positioning, media publicity programs, exhibits, etc. To further strengthen the program, we should seek the proactive participation and exponential use from the destination's constituents in their own marketing communications delivery systems. As part of this process, a clearly defined priority of message that will best motivate visitors from all market segments should be addressed. This is best accomplished through a process that generates communications recommendations from key staff and other community stakeholders to enhance the existing messaging. FoJlowing this analysis, the conclusions could be tested through the use of Promise Testing Groups that ascertain the potential visitor's willingness to accept, and act on, A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 46 the presented messages. Next, communications messages would be added to existing messages for consistent use in ongoing communications vehicles: . Web site . Publications . Direct mail programs . Trade show displays . Media publicity . Advertising . Sales solicitation programs, etc. Finally, the creative platforms that result form the priority messages should be tested using Internet-based consumer procedures. Strategy 1: Continue to support the Tropical/Cosmopolitan image while creating an aspirational fashion image with influential people, trendsetters and others who will present the status of a Miami vacation to potential visitors. Tactics: . Present Miami's image in publications that influence the style-conscious and trend-setters. . Use creative techniques (fashion photography, music video style videography, etc.) to present a Miami image different that most destinations. . Look for partnering opportunities with fashion brands, restaurants and nightclubs. Strategy 2: Establish the area as a unique and desirable leisure destination within the travel planner community. Tactics: . Make presentations to reservation planners booking packages into Miami. . Demonstrate vacation opportunities available in Miami that are not available elsewhere. Feature a unique mix of entertainment options including: o Shopping o Nightlife o Two national parks o Multicultural opportunities . Attend travel planner shows as appropriate. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 47 . Create road show for presentations at Travel Planner offices. . Develop unique itinerary suggestions to attract more diverse visitors. Objective Three: Enhance the GMCVB's website as an outreach, fulfillment and sales and conversion tool. Our website should be the central "meeting place" for all inquiries about a trip to Miami-Dade County. . Search engine hits should be optimized. . Data collection from visitors to the web site must define the various profiles of our visitors and help to continually refine the marketing campaign to meet specific needs. . The site must tell the full Miami story in order to reinforce the brand image and support various neighborhoods and sub-brands. . The site must tell the full Miami story in order to provide all the information visitors need to make informed decisions for their visit. . The website should provide purchase and conversion opportunities. o Online booking o Ticket purchase for events, attractions, etc. o Restaurant and show reservations Strategy 1: Establish friendlier consumer and travel planner web pages. Tactics: . Optimize the site. . Establish a permission-marketing program to boost registered users. . Continue to obtain new e-mail addresses through collection at on-site prornotions. . Send quarterly e-newsletter to consumer database. . Implement "free gift" booking incentive for booking hotel rooms. . Monitor other travel related websites for advertising promotional opportunities. . Monitor competitive websites for best practices. . Develop a travel planner section. . Send quarterly newsletter to travel planner database. . Offer itinerary suggestions for 2-3 day and 6-7 day trips. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 48 . Present Pre- and Post-Cruise program opportunities. Objective Four: Objective Five: Develop and maintain strategic alliances. . Developers. . Private funding sources. . More co/op programs specifically tailored to: o Golf o Spa o Attractions o Boutiques Collect more data about the County's market position. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 49 Membership Mission Statement: The mission of the Membership Partnership Program is to establish a core base of Bureau members to provide visitors and convention attendees with a broad base of services. Furthermore, the program generates vital private revenue and support of GMCVB operations. The Membership Division provides partners with key benefits, services and marketing opportunities as well as leveraging marketing initiatives for the GMCVB. 2003 "Achievements: . Realized an 80% retention rate from 2002 going into 2003. . As of September 30, 2003 a total of2l5 new partners joined the Bureau's Membership Partnership Program (exceeding the annual goal). . Hosted over 1,800 partners at 14 different member partnership functions through 2003. . Expanded multi-department features in the "What's Happening" and "Member" Newsletters to enable immediate communication with partners via e-mail. . Increased e-mail addresses on file for partners from 40% of all members in October 2002 to now include 65% of all members in July 2003. This is an ongoing process that will continue in 2004. 2003 Goals-Membership: . Generate $180,000 in new member revenue through an aggressive recruitment effort with a focus on the marketing subcommittees established this year. . Retain the vast majority ofthe current membership base resulting in a net new and renewal revenue goal of$I,331,400. . Execute a Program of Work designed to foster active participation between the Bureau and its members as well as the active promotion of member products and services. . Continue to support the expansion of the Bureau's use ofInternet and website technologies to provide additional marketing opportunities for GMCVB members and partners. 2004 Membership Objectives Objective One: Recruit new member partners by making area businesses and organizations aware of economic advantages of the program. Strategy 1: Utilize sales blitz campaigns throughout the year to reach out to prospective partners. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 50 Tactics: . Coordinate sales outreach efforts with printing of pertinent publications to use as leverage. . Send at least 350 direct mail letters as initial outreach to targeted potential partners. . Schedule a minimum of250 one-on-one meetings with potential partners throughout the year. Strategy 2: Review current benefits and services offered to rnembership partners and implement changes making the partnership program appealing to a targeted range of businesses. Tactics: . Evaluate benefits and services offered in each partner classification to ensure benefits and services will meet the needs of potential partners. . Attend conferences and seminars directed at GMCVB membership to obtain information on new ideas and tactics used by industry. . Continue evaluation throughout the year; recommend additional changes in November 2004 for the 2005 package. Strategy 3: Develop new inserts and forms for the solicitation package that are accurate, eye catching and easy to read. Tactics: . Present fee schedule in chart format allowing a quick comparison of benefits and services between classifications. . Revise current solicitation package to utilize colorful and eye catching letterhead, fliers and forms. Strategy 4: Continue to recruit rninority owned businesses as marketing partners. Tactics: . Survey key Greater Miami businesses as to their multicultural marketing efforts. . Provide added value through links from multicultural page on website. Strategy 5: Attend community luncheons and other functions to network with potential partners. Tactics: . Using reciprocal memberships with various community groups get on mailing list to be notified of functions and events. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 51 . Attend five community functions throughout the year as appropriate. Objective Two: Retain 85% of base partners in the coming year. Strategy 1: Evaluate and implement changes, where feasible, to current benefit and services package offered to partners, to enhance the value of partnership participation. Tactics: . Each member ofthe membership sales team (four in total) will speak with approximately 12 existing partners on a weekly basis to discuss their needs and evaluate the GMCVB's performance as to benefits promised. . Host 2-3 educational seminars and prograrns for partners during the year. . Expand advertising and marketing opportunities for partners on the web site and in printed material. . Review major and minor category choices to improve web site listings, making visitor searches easier and more accurate. . Encourage membership partners to ask how visitors found them and include this as a question on the survey. Strategy 2: Maintain open communication with members at all times to encourage their active participation in partnership programs and marketing opportunities. Tactics: . Send "verification of information" request to partners at least twice a year to coincide with printing of publications. . Include a reminder in a monthly rnailing of benefits and services available to the partners. . Use "What's Happening" and "Mernber" Newsletters to educate partners about the benefits ofthe web by providing them with statistics on unique users per month and the benefits of participating in the various web-based marketing programs the GMCVB provides. . Educate members about the new brand image and the markets the Bureau is pursuing to encourage community buy-in. . Notify partners of scheduled activities in a timely manner with follow-up reminders close to the date of the event/function. Strategy 3: Evaluate the current New Member Orientation Program and re-design with the goal of educating partners on how to use the materials the GMCVB provides to them to ensure they get the maximum value from the program. Tactics: . Create an introduction that summarizes the Bureau's functions, primary markets and new brand image to educate new partners about our direction. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 52 . Focus on how partners and the Bureau work together rather than speaking about what the staff does and what our mission statements are. . Determine which departments should have representatives at the orientation to give the partners the best advice on benefits and services they provide. . Provide sample packets of information and forms that will be sent to them throughout the year, and have slides during the presentation that explain what they are and how they can be used. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 53 IV. Accountability: Performance Measures and Return on Investment Introduction: The GMCVB commissioned Marshall Murdaugh Marketing to develop a comprehensive state-of-the-art industry Return on Investment (ROI) model to monitor and quantify economic impact results of the GMCVB's marketing prograrns on behalf of the community. These recommendations incorporate ROI methodologies, benchmarking and additional supportive and evaluative recommendations for GMCVB market and marketing research. In addition, a separate directional plan to secure foundation funding was provided for exploring the opportunities for grant development to fund hospitality training, signage, web enhancement, package tour development and relevant cultural programs. ROI Plan Deliverables This program is intended to enhance GMCVB operations and ultimately the economic productivity of marketing initiatives for the greater good ofthe entire community. It provides the most effective method for producing a broad-based, ongoing statistical analysis of the significant, measurable incremental economic returns to the community from the resulting delivery of productive tourisrn marketing initiatives ofthe GMCVB. This program is arguably the state-of-the-art model for ROI throughout the destination management/convention and visitor bureau industry. The plan measures the dollar return to the cornmunity from visitors who have been motivated by the GMCVB to come to Miami. Specifically, it includes the estimated number of incremental visitors influenced, along with their economic impacts in terms of hotel room night generation, total estimated visitor expenditures made during their stays, and resulting tax revenue provided to the community and state. The ROI Plan requires, whenever possible, all economic impact results to be provided by independent third party analysis to ensure reliability and confidence throughout the community. It is important to note that while this Return on Investment impact is substantial, it is but the tip of the proverbial iceberg. Since its inception, the Bureau has been at work delivering sales and marketing programs that produce long-term equity in the marketplace for Miami - umbrella advertising, media publicity and sales efforts on a worldwide basis that, albeit difficult to fully A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 54 quantify, have stimulated substantial positive visitor awareness, interest and ultimately, millions of new visitors that provided incremental business to the tourism industry. Also included in this report are recornmended research initiatives for enhancing future marketing efforts. And a research model is provided for comrnunity use in valuing the economic impacts of events. These recommended methodologies are intended to provide broad-based direction and will be thoroughly evaluated during the GMCVB's 2005 budget and goal-setting process in the third and fourth quarters of2004. Each may require additional adjustment and refinement before implementation from third party research firms. Also, the staffs research findings regarding average visitor trip expenditures, party size, etc., needs to be input for each formula. Thus, estimated econornic impacts in this report are intended merely as desired outcomes. The Bureau Value Statement: After this model ROI Plan is developed and estimates are made, the incremental value of quantified tourism contributions made by Bureau marketing to the community should approximate a quantifiable value statement like: "Last year, operating with an $18 million dollar marketing budget, the OMCVB produced new advertising, web site and convention/leisure tourism sales programs that generated an estimated 478, 000 incremental visitors, producing $412 million in new out- of town visitor spending from leisure visitors andfuture conventions booked, andfilling 735,000 room nights. Thus, for every marketing dollar invested, it produced a twenty- three-to-one return for the community. This visitor spending also produced about $41 million in state and local tax revenue and generated or sustained employment opportunities for more than 5,000 local residents. " Principal ROI Program Components: The principal programs currently recommended for annual measurement ofROI, along with the evaluative criteria and techniques used for each, include: . ConventionslMeetings: Annual conventions booked (produced) for the community by the sales staff, including anticipated convention delegates/visitors, room nights produced, and the delegates' total estimated visitor receipts while in Miami. . Advertising: The medium's conversion of consumer interest to new visitors, hotel room night generation and estimated visitor receipts for the community. Traditional and non-traditional models are included. . The GMCVB Website: The portal's results in producing new visitors, hotel room night reservations, and estimated visitor receipts for the community. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 55 . Tourism Sales: The Bureau's global program impact in converting new or renewed visitors, and resulting estimated visitor receipts for the community. As a result ofthese program analyses, the Bureau will be able to report the total estimated dollar ratio of return from each marketing/sales dollar invested for the Greater Miami area. In addition, local and state taxes paid by visitors to support the economy and local jobs generated and sustained from this visitor spending can be extrapolated for reporting purposes. Measuring Other Bureau Marketing Benefits for Miami: Two other major bureau programs - while unable to quantify specific and measurable direct ROI - are significant for the contributions they make to the local tourism industry and require reporting subordinately with the ROI information. They are: . Media Publicity Generated: The worldwide initiative should report the total number of positive media impressions made by the Bureau through its proactive publicity efforts that reach millions of people annually, producing top-of-mind awareness of the destination, and ultimately persuading untold numbers of consumers to visit Greater Miami. The dollar value of this media coverage, as measured in the related cost of advertising in lineage inches and broadcast exposure, is also significant and should be tracked and publicly reported. . Bureau Partnership Alliances Created: Those business partnerships that leverage bureau marketing resources, along with the in-kind services and financiaJlmanpower resources provided by businesses to support tourism efforts should be noted, nurtured and expanded whenever practical. Timelines Some ROI program results can be returned within a three-month period. The comprehensive analysis can be delivered within a 12 month period and should be continued thereafter. Major Productivity Programs for Return on Investment Analysis: Program 1. Conventions Booked: Annual number of conventions produced for the community by the sales staff, including anticipated convention delegates/visitors, room nights produced and the delegates' total estimated visitor receipts while in Miami. This information is now being assembled, analyzed and provided by the Convention Sales Department. Each convention's meeting planner provides the estimated number of anticipated room nights to the Bureau. Then the numbers are validated, based on Miami hotel contracts, as well as the past history of each organization as provided by the Meetings Information A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 56 Network System (MINT) of the International Association of Convention and Visitor Bureaus (IACVB). This system requires that other IACVB cities that have hosted the convention in the past five years, provide actual room pickup totals to the MINT Report, which is then made available to Miami. The Miami Bureau then determines the estimated total economic impact of convention delegate visitor stays, based on an industry formula developed by IACVB. This methodology is considered quite conservative; it is based on current dollar cost estimates, rather than applying inflationary factors for future convention expenditures. Current Annual Conventions Booked Results: "Four hundredforty-sixfuture conventions booked by the Bureaufor both the Convention Center and individual hotels, will produce an estimated 344,000 delegate visitors, filling an estimated 428,093 hotel room nights throughout the community and providing total delegate spending in Greater Miami of an estimated $208 million." This analysis should continue to be made monthly and annually, and incorporated in new annual ROI Reports. Program 2. Advertising: The Bureau's ad program that converts consumer interest to actual new visitors, hotel room night generation, and new estimated visitor receipts for the community. Although this analysis is not currently available, the Bureau has wisely incorporated a toll-free number and the website address in all advertising, providing measurement response mechanisms for future evaluation. For the potential use of future research, there were 26,770 phone calls made to the call .center last year, and the web reports 394,096 web users, which have produced about 35,000 registered users who have signed up for additional information. Analysis Implementation A recognized third-party independent research company can provide consumer conversion analyses. The firm of Alan Newman Research is recommended. The company has extensive background in work for the tourism industry, provides a qualified approach and can rneet sole source requirements for this work. Recent clients include Visit Florida Tourism, the North Carolina Division of Tourism, Walt Disney Parks and Resorts On-line, etc. The firm would contact phone respondents via phone and Internet respondents via email, with a lapse of about six months since their calls to receive information on Greater Miami. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 57 Respondents would be queried on whether they came to Miami, and other relevant information including party size, length of stay, type of accommodations, etc. From this data, trip expenditures could be extrapolated by Bureau staff research. Anticipated Annual Results With more than 25,000 call center customers and another 35,000 registered web users for a universe of about 60,000 inquirers - who subsequently received visitor travel information about Greater Miami that stimulated their interest to visit - it would not be unusual for actual travelers to have been motivated to visit Miami at the average industry conversion rate of35 to 40 percent. This would mean that the ad program could have produced in the range of 2 I ,000 to 24,000 visitor parties last year. By applying an average visitor party expenditure figure of$2,000 and a three-night stay, this would have produced between $42 million and $48 million in estimated new visitor receipts for Miami, and generated between 63,000 and 72,000 room nights. Anticipated Traditional Advertising Results: Current results that would be verified by conversion research may conclude that: "An estimated 22, 000 visitor parties, who were among the millions who saw Bureau advertising last year, requested iriformation and were motivated to actually visit- spending an estimated $44 million here and generating more than 67,000 hotel room nights throughout the community. .. Thus, for every ad dollar expended on the GMCVB's $5 rnillion campaign, it produced about a $9 to $1 return in visitor receipts. This analysis should be conducted now and every three years, and the formula applied annually to verify positive yearly ROI impacts from the ad program. The cost for this study is in the $20,000-$30,000 range, certainly a modest and appropriate research investment for the multi-million dollar annual ad program. Non-Traditional Advertising The GMCVB should investigate a new ad medium that guarantees the delivery of new visitors via the Internet and can fill special short-term needs, such as summer travel. Developed by Ebrains of metro Washington, DC, the alternative ad initiative is being used today by about 50 cities and states. The Orlando CVB, for example, first tested the concept with a limited toe-in-the-water investment. Due to dramatic results achieved in producing significant volumes of new visitors, Orlando's bureau has spent $300,000 this past year on the program. Ebrains has negotiated arrangements with about] 00 major national tourism related websites, such as greeting cards, map/information services, etc. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 58 When visitors request an offer on one of these sites, the destination's message then also appears and visitors are invited to inquire. Consumers opt-in to receive destination information, but are screened to ensure tourism destinations that they are only receiving qualified inquiries. Then consumers are sent travel information and the names are then "owned" by the destination for potential repeat mailings. Destinations purchase the service based on the cost per inquiry. For a $25,000 fee, Ebrains guarantees about 5,050 highly qualified inquirers at a cost of $4.95 each. Fully 30% of these inquirers are then guaranteed to convert to actual visits. Ebrains also provides an independent third party conversion analysis to confirm visitors generated and their economic impact spending results. Anticipated Non-Traditional Advertising Results: Economic impact visitor results for this program that would be verified by conversion research are anticipated to confirm that: "An estimated 1,515 visitor parties who were attracted to Greater Miami through quick turnaroundwebsite marketing initiatives were motivated to come during the slower summer period - and spent an estimated $3 million, while purchasing about 4,545 hotel room nights throughout the community. For every dol/ar spent on this program, it generated about $121 in visitor receipts." For every dollar expended on this effort ($25,000 investment), it would provide about a one hundred-to-one return for the community. Again, the room night estimates and dollar volume expenditure will be determined by the actual conversion study. It is recomrnended that an initial $25,000 effort be initiated by the Bureau, which includes the conversion analysis to track results. Pending anticipated success, additional ad funds should then be reallocated to take advantage of special opportunity marketing, anticipating periods of visitation downturn, etc. Program 3. The GMCVB Website: The portal's results in producing new visitors, hotel room night reservations, and estimated new visitor receipts for the community. Hotel Booking Results: Results for the direct booking of hotel rooms via the website have been minimal, producing just several hundred room nights anilUally. However, the website has actually been a positive factor in producing web bookings for area hotels when the consumer bypasses the bureau's booking engines and goes straight to properties that are directly linked to the site. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 59 According to a recent analysis of the Bureau website by USDM.NET, the technology provider to the International Association of Convention and Visitor Bureaus (IACVB), an estimated 10,000 hotel reservations were rnade in this way during the past 12 months. Current Annual Hotel Booking Results: By incorporating an average length of stay ofthree days from the leisure market, and an average of $2000 per party visit, a major benefit should be attributed to the Bureau as follows: "An estimated 10,000 Visitors to Miami who were motivated by the Bureau's website, booked more than 30,000 visitor party room-nights with area hotels this past year and contributed an estimated $20 million in visitor receipts. " While this is a viable and important economic impact, it pales in comparison to much more significant benefits provided by an enhanced website portal for Miami and the GMCVB, as outlined next. Producing New Visitors Via the Web: The GMCVB is now embarking on a significant marketing initiative to optimize its web site to draw much higher volumes of potential visitors and actually convert them to visitation. A major component of this plan is a "My Miami" permission-marketing component, where web site visitors request periodic updates and new information on their personal travel interests. This tactic has a track record of exponentially increasing destination awareness, interest and desire to visit. It produces a large universe of new registered users that have the potential to convert visitors at a significantly higher rate than traditional methods. The industry leader in this field is USDM.Net, which has produced viable programs for rnany of the top bureaus throughout the industry, including Las Vegas and Atlanta. And their conversion rate of destination visitation, through website registered users, is currently in the astounding 60-80% range. They project that this program for the GMCVB will produce an estimated 100,000 new registered users in the next 12 months, and that these visitors will convert to actual visitation for Greater Miami at about 70% - or an estimated 70,000 new visitors during the first year. Anticipated Hotel Booking with Web Initiative Results: By developing this new web initiative, and using average party expenditures of$2,000, this would provide one ofthe Bureau's most significant programs of productivity on behalf ofthe community as follows: A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 60 "An estimated 70,000 new visitors were motivated to visit Miami last year through the Bureau's website, contributing an estimated $140 million in new visitor receipts and filling about 210,000 additional room nights/or area hotels." This program should be implemented and monitored for success in producing additional user sessions and new registered users. And USDM.Net should develop a full conversion analysis annually to track and report ongoing success. Special note: The conversion from existing web registered users, web hotel reservations and future website results rnay not be mutually exclusive and must be analyzed in this regard, rather than just adding them to the total ROI for future years. However, when the 100,000 anticipated new registered users are added to the existing 35,000 and the Bureau website is optimized for success factors, the conversion rate will significantly increase. Thus, its impacts on visitation and travel expenditures should greatly exceed all current estimates. Program 4. Tourism Sales: The Bureau's global sales force reach and convert new or renewed visitors, resulting in estimated visitor receipts for the community. Interfacing with tour operators to produce sales leads and potential new and renewable business for Miami is an important Bureau initiative. But in the ROI Analysis picture, its economic results may be comparatively less. A two-tiered approach is recommended for the evaluation of efforts that lead to Return on Investment results. Year One Analysis: Initially, it is recommended that the staff evaluate all future sales leads - and possibly those previously produced - estimating their individual economic impact potential for the community. This estimate should be based on the actual tour operator requirements and specifications, including number of estimated participants and attendant room nights that would be produced by the leads if converted into actual business. This information would be then provided in monthly and annual report totals as: . Estimated value of tour operator sales leads in new visitor business for Miami. Year Two Analysis: The results of the past year should then be analyzed for total estimated impacts. And a new evaluation step should be introduced, by having a staff member call tour operators within a three to four month period after the dissernination of each sales lead to determine what actually converted as a booking. The Bureau can then assign appropriate economic impacts for each converted lead, based on the tour operator's information. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 61 If it is determined that this program is not cost effective because it requires substantial labor-intensive evaluation, 20% of all leads may be randomly selected for conversion analysis and the results extrapolated to the total universe of leads generated. In any case, minimal measurement ofthis ongoing effort should be introduced to review the benefits of this million-dollar marketing initiative for the community and its tourism business partners. Here in abbreviated form are the anticipated major results: Conventions Booked: . 446 for the future. . An estimated 344,000 delegate visitors. . 428,000 estimated hotel room nights. . $208 million dollars in total delegate spending. Web Hotel Bookings: . 10,000 Visitor parties or 20,000 actual visitors. . Booked more than 30,000 room nights. . $20 million dollars in est. visitor receipts. Bureau Website (for future): . Delivered 70,000 new visitors. . $140 million dollars in estimated new visitor receipts. . 210,000 room nights. The Bureau's New Value Statement: As a result of these Program Analyses (incorporating leisure tour sales for the future) the Bureau will be able to report the total estimated dollar ratio of return from major programs delivered for the Greater Miami area as follows: "Last year, operating with an $18 million marketing budget, the Greater Miami Convention & Visitors Bureau produced new advertising, web site and convention/leisure tourism sales programs that generated an estimated 478,000 incremental visitors, producing $412 million in new out of town visitor spendingfrom leisure visitors and future conventions booked, and filling 735,000 room nights. Thus, for every marketing dol/ar invested, GMCVB produced a twenty-three-to-one return on investment for the community. " Few, if any, business enterprises can match these business return on investment benefits. Taxes Produced, Jobs Delivered: In addition, local and state taxes paid by these visitors to support the economy can also be extrapolated, along with jobs generated or sustained. It can be added to the value statement that: A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 62 "This visitor spending also produced about $41 million in state and local tax revenue and generated or sustained employment opportunities for more than 5,764 local residents. " A 10% state and local tax average on $412 million would produce an estimated $41 million in state and local taxes. In addition, the Travel Industry Association of America currently estimates (2002) that a local job is generated or sustained for every $7 1,4 78 in tourism visitor spending. Thus, an expenditure of $4] 2 million would generate or sustain about 5,764 local jobs. Dissemination of the Value Statement This is a powerful statement in fostering a strong reputation for the Bureau's work and response to its mission statement. It should be used prominently for the Bureau's annual report, marketing plan and other purposes such as a subordinate message at the end of Community Relations press releases, member newsletter, etc. The supportive detailed methodologies that validate this statement should always be readily available for inquiry. ROI Measurement Costs The estimated start-up costs to execute this program, excluding web site optimization, are rninimal: . Ad conversion analysis - $20,000-$30,000 (with analysis repeated in three years). . Burrelle's ad value analysis of print publicity - $2,400 annually. . Reallocation of ad budget to fund $25,000 Ebrains Internet initiative. . Staff manpower requirements to analyze the value oftour operator leads. Other Potential Opportunities For Delivering ROI Tourism Event Marketing: Special cultural events, such as long-term theater offerings and blockbuster art exhibitions, provide a strong potential for maximizing visitor impacts. And a rnajor Bureau alliance with tourism business partners, including credit card companies, can assure success and evaluate it as well. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 63 One example is Los Angeles' recent launching of several cooperative marketing programs with American Express. The latest was their "Get a hotel room and Lion King ticket" campaign. According to American Express estimates, produced using cardholder expenditure data, an estimated 33,000 visitors participated in the campaign and spent in excess of$128 million. Based on past reviews of comparable programs, it can be reasonably assumed that at least 70 percent of these visitors, and related expenditures, were indeed motivated by this campaign. This provided benefits to Los Angeles in new visitation of at least 23,000 visitors and an estimated $89.6 million in visitor revenue. Similar concepts can be explored for Miami. Measuring and Valuing Other Important Bureau Marketing Benefits for Miami: Two other major Bureau programs (Media Relations and Membership), while unable to quantify specific and rneasurable direct ROI, are significant for contributions they make to the local tourism industry and require annual reporting: 1. Media Publicity Generated: The worldwide initiative should report the total number of positive media impressions made by the bureau through its proactive publicity efforts that reach millions of people annually, producing top-of-mind awareness of the destination, and ultimately persuading untold numbers of consumers to visit Greater Miami. This however, is not an easy task. The Google search engine can report all mentions of "Miami tourism," for example, but it does not incorporate photos, which are significant portions of publicity generated by the Bureau, the actual size ofthe article, nor does it include non-print media. Burrelle's Media clipping service provides numbers of articles and their circulation (or readership). But clipping services can miss up to 50% of all editorial placements. As to the value of Public Relations and Travel Publicity, members ofthe Society of American Travel Writers have anecdotally reported that the value of publicity is three times that of advertising because it is produced by independent third party sources and not paid for by the destination. But there are no recognized research conclusions to support this belief. Still, there is great industry recognition and acceptance for the inherent value and reputation of editorial media coverage in producing top-of-mind travel publicity that positively affects visitor decisions. And the GMCVB has one ofthe country's most effective programs at work developing this important coverage. Evaluating Media Publicity Success: The staff estimates that last year it produced media publicity coverage that totaled about 650 million impressions through TV, radio and print. In comparison, Bureau advertising reach was estimated at about 37 million. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 64 However, this burgeoning potential audience, as measured in print media circulation, viewing and listening audiences of the various media, cannot be classified as actual viewers or listeners - only as potential audiences. The staff should continue to evaluate its media publicity success through Burelle's clipping service and supplement the analysis by purchasing Burelle's evaluation of the value of bureau coverage based on what this publicity would have cost if purchased in advertising lineage rates. According to staff management, this service will add about $200 a month to the contract, a worthwhile investment for the Bureau. The staff should also begin to estimate its annual goal for publicity development audience reach (as delivered in viewing audience, print circulation and listenership). Then the ad equivalent evaluation can be added at year's end to track the value of the publicity. (Current estimates for advertising equivalent cost are now in the $20 million range). Add this supporting statement to the value statement: "The bureau produces strong top-of-mind publicity about Miami and its diverse visitor appeals through its worldwide media relations program that produced publicity coverage exceeding 650 million positive impressions on TV, radio and print media. (If purchased in equivalent ad costs, this media coverage would be valued at $ ---..J. " 2. Membership Benefits: The Bureau's membership program does so much more than just produce member dues revenue. Membership fosters Bureau partnership alliances that leverage Bureau-marketing resources, along with the in-kind services provided by businesses to support tourism efforts. They should be noted, nurtured and expanded whenever practical. The dollar value of Bureau member program support for advertising, sales initiatives, along with in-kind services for familiarization program support for customers, is in the $ _ range. The total amount, including member dues, statement follows: " _ Miami tourism businesses today provide more than $_ in annual financial support to leverage new bureau marketing efforts. This is in addition to direct revenue from visitors who stay in hotels and pay lodging tax that is reinvested in tourism marketing to produce new visitors". Other Tracking and Program Evaluation Methods A number of marketing research methodologies were reviewed with senior management for evaluating and creating advertising, measuring customer awareness/interest to visit, and delivering consumer perceptions about the destination. They include: A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 65 . Ad Campaign Awareness/Brand Effectiveness Studies: E-mailed to a projectable sample ofthose meeting the demographic profile of Miami leisure visitors. . Specific Ad Testing: It tests ad impact, customer empathy, copy points, brand retention, etc. . Destination StrengthslWeaknesses: Provides a profile of major visitor benefits and challenges based on a projectable e-mail survey. Each of these surveys can be designed and produced in the $8,000-$12,000 range. Equation Research is a recommended supplier. . Ad Development Testing: A directional process employs focus groups, sometimes of both visitors and non-visitors, to review approaches, gauge destination awareness and develop consensus on the priority motivational messages, benefits and appeals of the destination that should be the focus of comrnunications efforts. Costs for two focus groups, analysis, video of the sessions, and expenses usually are in the $10,000-$12,000 range. Alan Newman Associates is a recommended supplier. Making Advertising Work Harder Another proven method of research, designed to strengthen ongoing ad efforts, is to measure ad interest based on inquiry returns. Here, two identical ads are employed, except that one ofthem incorporates a different element or approach. That new element, for example, may be a different motivational appeal delivered through a photo, or a copy block containing sensory destination appeal allure copy. Both ads employ the same call to action, but use different call center toll-free numbers to track reader response. Then the ads are run in publications that can allow every other reader to receive either the first or second ad. If one ad significantly outdraws the other ad in raw inquiries, this indicates the ad concepts relative winning advantage and strength in producing customer awareness, readership and interest. The Benchmarking Process Measuring Bureau Performance and Resulting Success: To consistently measure its ongoing success, the Bureau should institute a comprehensive monthly and annual analysis of all activity and productivity. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 66 This report becomes the Bureau's mirror. It is the measurement response to the agency's mission statement. It is singularly the most important tool used for rneasuring ongoing bureau performance. It should also be employed as the genesis for developing the Bureau's goal-setting process (forecasting the pre-determined delivery of Bureau productivity measurements). The document should report categories by month, compared to the previous month; and year-to-date, culrninating with an annual report that compares final results to past years' efforts. This process and recommended deliverables have been reviewed with all senior managers at the Bureau and there is agreement on everyone's ability to deliver and report all categories as provided herein. In addition, administration confirms the ability ofthe Destination 3000 software program to administer this report. This report should be disseminated to all staff, portions drawn from to highlight the bureau's annual report, marketing plan and other communications programs for the comrnunity. For background, the Bureau can better measure its ongoing success by consistently delivering and reporting: . Promotional activity. . Marketing productivity. Promotional Activity includes such work as literature distributed, sales calls made and publicity releases issued. As more promotional activity is produced and targeted appropriately, over time, there should be corresponding increases in marketing productivity. Marketing Productivity is the most important output. These business measurements include business booked and resulting room night revenue, hotel reservations made and resulting economic impacts, as well as other important indicators of the Bureau's successful selling efforts on behalf of the community. In all cases, Bureau productivity can and should be forecast and stated as goals to be delivered in the annual marketing plan. The rnost important annual productivity measurements should be: · The number of conventions/meetings booked, resulting room nights and economic impact. · New leisure visitors generated via advertising impressions and web site registered users/inquiry conversion and resulting economic impact. . Tour operator group sales generated plus potential economic impact. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 67 . Positive media publicity impressions produced of credible travel stories to influence travel decisions and resulting dollar value in comparable advertising space costs. . Bureau member support, including dues, alternate funding from business partners and additional non-dues revenue provided for expanded marketing initiatives. These represent the key performance indicators to be reported at the Board level. The Goal Setting Process This comprehensive report above will deliver annual results that should then be used as the initial benchmarking step in developing goals for the upcoming year. This entire goal- setting process should be clarified in writing for the entire marketing staff. There are numerous other resource reports that support the Benchmarking efforts. Some of the more important reports include: . Conversion Analyses: To determine consumer visitation/response to major initiatives including advertising and web programs. . Lost Business Reports: An annual analysis of convention business - based on lead generation and/or bid proposals and solicitation requests - that decides not to book. . Cancelled Business Reports: An annual analysis of conventions cancelled following their confirmed booking with the Bureau. . In-kind Partnership Report: An annual analysis of partnership and alliance financial support provided to the Bureau. A companion report should quantify the number of partnerships or alliances formed throughout the year, compared to past efforts. . Conversion of Sales Leads to Business Booked: An annual assessment of how well the Bureau is doing in this major area that tracks activity to resulting productivity. . Convention Income Survey: The method produced for quantifying the value of booked convention business used in the benchmarking analysis. . Convention Summary Reports: Including actual room pick up and resulting economic impacts for the comrnunity. Following the Monthly Marketing Report and the development of relevant productivity goals, Bureau management needs a quick way to analyze performance throughout the A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 68 year against each pre-determined goal. One method is through The Consolidated Marketing Analysis (CMA). This one-page senior management report tracks all productivity categories, comparing the annual goal for each program against monthly and year-to-date results. The (CMA) serves as a comprehensive management tool for the CEO in tracking and reviewing ongoing success of actual work against goals on a monthly and quarterly basis. Measuring the Economic Impact of Miami Events and Festivals Miami plays host to numerous popular events and the Bureau is often called upon for advice in determining the economic impacts of various events. As a service to the industry, Bureau leadership may wish to recommend a standard, low cost, highly effective research tool for event irnpacts. The International Events Association (IFEA), comprised of worldwide festival and event professionals dedicated to promotion and strengthening of the events industry, provides this serv ice. Their econornic impact consultants provide comprehensive economic impact studies for events, including spending and tax impacts, demographic and local profiles of visitors, etc. The cost is an extremely low $2,000. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 69 v. Budget and Related Implications for Implementation There are obvious budget and resource implications to designing and implementing strategies in support of the Strategic Work Plan and adopted goals. The variety of issues to consider include but are not limited to: . Current GMCVB operating budget. . Increases and/or reallocation of sales and promotional dollars. . Diminution of traditional promotional efforts. . Professional staff capacity/assignments. . Private sector support. . Pubic sector support. . Specific programs, activities, services conducted by the GMCVB for or on behalf of its customers and constituents. . Priority focus versus vertical and niche markets. After consolidating and evaluating the varied input and priorities plus numerous observations and recommendations from the two independent performance audits, the strategic planning exercise, the Bureau's Executive Committee, and the draft template for an integrated Marketing Plan, the following points highlight projected costs related to implementing select initiatives. 1. Website: There is resounding agreement that this initiative is a top priority. Bureau staff, the Executive Committee, and the consultants executing the audits and the strategic planning exercise all cite the need for and benefits ofa re-engineered website. Briefly, the site improvements include providing dynamic one-to-one functionality, deep and current experiential content, from lifestyle-to-community specific, more revenue opportunities, enhanced online booking capability, in-depth data collection for consumer profiling, etc. There will also be additional staff resources needed to fully manage this process. As a follow-up to the audit and strategic planning process, staff obtained "best practices" options from the consulting firm representing the International Association of Convention & Visitors Bureaus (IACVB): Estimated Costs: Redesign Management & Training Expanded Web Marketing $155,000 (Non Re-Occurring) $170,000 $300,000 - $350,000 2. Public RelationslMedia Relations: Public Relations Program Expansion - due to advertising budget restrictions and the cost of general market advertising (both print and electronic media), the value of media placements continues to grow. A solid investment in an expanded Public Relations campaign would pay dividends in tourism dollars and related sales locally, regionally, A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 70 nationally and internationally. Plus, improved exposure to top government officials will enhance the Bureau's overall Community Relations efforts. The current GMCVB Media Relations Budget is approximately $846,000 and includes a full-time professional staff of 4 media relations executives and I support staff (salary budget of $320,000). The Division has a promotional budget of approximately $527,000 including a domestic PR contract currently valued at $85,000 and two contracts with firms in the United Kingdom ($66,000) and Germany ($56,000). The current contract for our domestic firm in New York is significantly under market value. Retaining a full-service PR firm has with it a significant budget implication. Projected Cost to Support Major Expansion: $500,000 3. Meetings & Convention Incentives: In the face of increased competition for major city-wide conventions and special events, destinations and facilities are becoming increasingly creative and aggressive to create incentive funds/pools to attract bookings. Although the GMCVB currently has a modest pool and enjoys a strong partnership with both a City of MiamilDowntown Miami Hotel Task Force and a City of Miami Beach/Miami Beach Hotel Task Force, an expanded incentive pool may be required to remain competitive. Competitive incentives vary frorn actual cash contributions to waiver of rental and usage fees for meetings facilities. Projected Cost for Expanded Incentive Pool: $ 500,000 (Plus In-Kind Consideration) 4. Research: All of the summary reports have advocated for the important role that research can play in targeting markets, defining High-Value Customers, designing and evaluating. advertising and promotional messages, converting new customers, as well as calculating and evaluating performance and Return on Investment. A number of exarnples and options have been recommended for consideration. They include: Advertising Testing Brand Awareness/Conversion Effectiveness Additional Syndicated Research Supporting Travel Agent andl or Meeting Planner Research $ 12,000 - $15,000 $ 30,000 $ 50,000 $ 25,000 - $50,000 A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 71 5. Way-Finding A number of observations and research efforts have fevealed the important service and branding roles that can benefit from a comprehensive comrnunity-wide way finding and signage program. Historically, the burden and responsibilities of designing and funding such programs rests with the public sectof and is overlapping by jurisdiction be it federal, state Of local highways or municipal governments or facilities. With a destination so diverse, geographically distinct, spread-out and welcoming of millions of international visitors annually, a comprehensive way finding program is cfitically needed. Projected Costs: Without a comprehensive inventory and study of the existing and needed system, a cost cannot yet be projected. It is safe to say that a dedicated funding source and better coordination of public sector responsibilities would need to be identified beyond existing budgets. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 72 VI. Stated Goals In response to the coordination of two performance audits, a strategic planning exercise coordinated with outside consultants, priorities and objectives established by the Bureau's Executive Committee, and coordinated performance and accountability standards established by Bureau staff, a series of desired outcomes and specific goals should be established to provide a guide for future planning and strategic partnerships. As a blueprint for implementing a comprehensive Strategic Planning process, specific goals have been recommended and grouped in five (5) strategic areas: 1. Enhance the Destination's Tourism and Related Infrastructure and Continue to Develop and Expand Attraction Assets. A. Miami Beach Convention Center. I .A. I. The GMCVB should continue to support and advocate for the planned expansion of the Miami Beach Convention Center as well as provide collaborative input and assessrnent ofthe facility as possessing the latest and emerging state-of-the-art services/facilities designed to meet the needs of current and new customers. 1.A.2. The GMCVB should continue to monitor industry trends, best practices as well as competitive challenges to provide and support incentives required in order to effectively compete for the solicitation of group meetings and conventions. B. Othef Meetings Facilities. l.B.l. The GMCVB should continue to support and advocate for the optimurn use and promotion of other meetings venues within the community including earlier noted trends, best practices and cornpetitive challenges. C. Airport/Seaport Productivity. I.C.l. The GMCVB should continue to support strategic alliances with Miami International Airport and the Port of Miami designed to maximize the number of overnight visitors that can be generated from business activity including but not limited to route development. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 73 D. Attractions I.D.l The GMCVB should take an active role in monitoring the competitiveness of its "attractions" assets and their relevance to the expectations of current or potential visitor profiles. This monitoring role should include all range of attractions including private facilities, public facilities/parks, performing arts and cultural facilities/museums, historic sites and districts and entertainment districts. E. Beach Renourishment and Revitalization I.E. I As the current primary visitor attraction to the region, the maintenance, protection and optimum accessibility of the region's beaches is of critical importance. In recognition of natural and man-made challenges adversely impacting this resource, the GMCVB should take an active role in working with local municipalities, county, state and federal agencies to ensure that a proper and coordinated plan is in place as well as the important roles private beachfront facilities including hotels can work closely to rnaintain and service this important visitor amenity. F. Way Finding and Transportation - I.F .1. The GMCVB should encourage, advocate and support the development and expansion of a community-wide way-finding program fostering a collaborative effort between the public and private sector. Way-finding systems should include highway and street signage, location and on- premise signage, public and private transportation systems, key gateways and transfer points for the destination, as well as supporting collateral and promotional materials. Such materials should strive to strengthen and reinforce brand assets and brand identity. To support in the advocacy of such a system, a comprehensive review of the current systems and service levels in place should be conducted. I.F.2. The GMCVB should encourage, advocate and support the development and expansion of Public/Private Transportation services that assist in serving visitor needs including the irnportant coordination of visitor parking and accessibility to visitor attractions/services. I.FJ. Concurrent with a review of current systems, a public/private partnership- should be forged with stakeholders to design an optimum and efficient funding mechanism to support in the development of such systems and servIces. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 74 2. Enhance the Visitor Experience A. Service & Attitude. 2.A.l. The GMCVB should support and advocate for the creation and establishment of a collaborative "Service & Attitude" culture within the broadest possible scope of the hospitality industry ensuring that service levels and customer perceptions exceed leading industry standards. Specific strategies should include a comprehensive survey of current service levels and perceptions, a review of best practices and the use of current and expanded research methodologies to determine specific program recommendations. B. Taxi Service. 2.B.l. The GMCVB should continue to take an active and supportive role in the ongoing commitment of ensuring the highest levels oftaxi and for-hire service including operating standards, service & attitude, and distribution systems including maximizing the arrival and departure of visitors at Ft. Lauderdale/Hollywood International Airport. C. Repeat Visitors. 2.C.l. The GMCVB should incorporate strategies in both research as well as service & attitude programs designed to support the rnaximum generation of repeat visitors to the destination. 3. Optimizing Sales & Marketing Activities Resulting in Maximum Performance and Results. A. Leisure Sales & Marketing. 3.A.I. Design and implement a fully integrated Sales & Marketing Plan in support of this desired outcome while defining and targeting High-Value Customers that will optimize available resources. 3.A.2. Continue to grow domestic and international overnight visitors while maintaining optimum average daily room rates and occupancy performance for area hotels. 3.A.3. Continue to focus on growing summer and shoulder overnight visitation. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 75 B. Convention Sales & Services. 3.8.1. Design and implement a convention sales and service strategy that targets the optimum conventions, meetings and events utilizing area Convention Centers as well as specific meetings venues in partner hotels. Strategy efforts will include targeting groups that can be attracted to take advantage of the variety and diversity of area hotels, meetings venues and destination products. 3.8.2. Expand current programs and strategies designed to stimulate and support generation of leads and bookings of shoulder and summer business. Such programs should incorporate emerging trends for non-traditional business, meetings and events. 3.B.3. Design and implement a comprehensive Convention Services Plan that provides optimum service and coordination to meet the needs of meeting planners, delegates and vendors resulting in the achievement of desired service levels and fostering repeat bookings. C. Research. 3.C.1. Expand upon current research methods (intercept surveys) to validate and further define and profile visitors and potential visitors including additional syndicated research and focus groups. 3.C.2. Develop research models that help define and delineate High- Value Customers including areas of interest, visitor expectations, seasonal travel patterns, party size and composition, related activities and competitive destinations. 3.C.3. Develop research models that further identify current "non-visitors" to the destination including qualitative analysis of perceptions and interests in decision-making for vacation and travel planning and to assist in the development and distribution of motivational messages. 3.C.4. Develop research models that test and evaluate the effectiveness of current and proposed GMCVB advertising strategies including targeted niche market segments. Methodologies should include conversion studies as well as pre- and post-promise testing. 3.C.5. Develop GMCVB website capabilities and menus and page-view options to assist in developing "profiles" of visitors, both in terms of quantitative traffic to and within the site and qualitative interests of users. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 76 D. Funding. 3.D.!. Strengthen interlocal partnerships and maximize prioritization, use and leverage of tax dollars in support of destination sales and marketing including but not limited to funding ofGMCVB efforts. 3.D.2. Building upon the current success of the GMCVB's Membership Program and utilizing best practices from other comparable or applicable organizations, evaluate the current dues and services structure identifying opportunities to increase member participation and investment. 3.D.3. Develop and implement a comprehensive "sponsorship" program designed to generate private investment/sponsorship opportunities including but not limited to special events including title sponsorships, collateral and promotional materials, website promotion and exposure as well as leveraged advertising opportunities. 3.DA. Develop appropriate in-kind formulas to maximize partner investment and support. 3.D.5. Develop a grant-seeking and foundation solicitation program with the optimum goal of linking grant-giving organizations (both private and public) with programs and activities in support ofthe overall mission of GMCVB and/or industry partners. Consideration should be given to leveraging grant-seeking efforts with partners in the public sector. 3.D.6. Expand current cooperative advertising programs and solicitation efforts to optimize investment and leveraged opportunities for cooperative partners (including public and private sectors). E. Marketing. 3.E.l. Based on the findings and recommendations outlined in Section II and current and expanded research capabilities and methodologies outlined in Section VI - 3 (Research), produce a Market Assessment that will assist in identification and targeting of High-Value Customers for sales and marketing efforts. 3.E.2. Design and adopt a fully integrated marketing plan for all sales and marketing initiatives as part of the upcoming FY 04/05 budgeting and planning cycle incorporating the findings and recommendations outlined in Section III as well as the findings of the Market Assessment. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 77 3.E.3. Continue evolution and expansion of "cosmopolitan/tropical" themes for the destination's Miami brand while expanding opportunities to take advantage of strong brand attributes ofthe variety and diversity of Miami's "neighborhoods" and sub-brands. Utilize fulfillment tools to educate customers and potential customers to tell the complete "Miami" story while ensuring brand integrity and consistency, not only advertising but supporting brand elements in visitor guides, website, special collateral materials, sales and promotional materials and media relations efforts. 3.EA. Utilize expanded research methodologies to test and pre-test brand strategies and motivational messages. F. lnternetlWebsite Marketing. 3.F.]. Continue the expansion and evolution of the GMCVB website including incorporating the findings and recommendations outlined in Section II. End goals of this initiative included but are not limited to: . Search Engine Optimization. . Strategic Listings and Linkings. . Direct em ail promotions to drive year round and seasonal business. . Niche Programming (Gay & Lesbian, Boutique, Heritage, Adventure Travel, as well as activities/customer needs i.e. Golf, Spa, Dining, Special Events, Nightlife, etc.). . Affinity and Cross-Marketing Campaigns. . Expanded Media Placement Strategy. . On-Line Public Relations. . Supporting strategies for Brand Imaging and Sub-Brand Diversity. . On-Line Research. . E-Commerce Options/Opportunities. 3.F.2. Expand "interactive" components resulting in a change from an informational channel to a deliverable product for the consumer/visitor. G. Professional Staff. 3.G.!. Utilize International Association of Convention & Visitors Bureau standards as well as best practices of other unique criteria identified as impacting the local industry, review and evaluate current GMCVB personnel policies (including compensation and staff development) that ensure maximum staff professionalism and performance. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 78 4. Position GMCVB as "True Stewards" and the "Voice" for the Visitor Industry. A. Community Relations. 4.A.I. The GMCVB should design, adopt and implement a comprehensive Community Relations Program incorporating the findings and recommendations outlined in Section II, as well as continuing to promote the impact and importance ofthe Visitor Industry and its partners. The GMCVB should continue to be a forum for the Visitor Industry including taking a leadership position on issues of importance to the industry and its partners. The comprehensive community relations plan should also incorporate newly developed Return on Investment methodologies. Such a program should incorporate strategies that target: . Local Visitor Industry including Strategic Alliance Partners. . Miami-Dade County Residents. . Public Sector and Interlocal Partners. . Other Community Based Service Organizations. . Local Education and Hospitality Training Institutions. . Opportunities to collaborate on a Regional, State and National Level. B. Governance. 4.B.I. Executive Committee, Board of Directors and Standing Committees should be representative and foster interaction with the key sectors of the visitor industry and the cornmunity while providing for an efficient and responsible oversight ofGMCVB operations and direction. Utilizing International Association of Convention & Visitors Bureau standards as well as best practices of other uniquely diverse governing bodies, review and evaluate current GMCVB by-laws and nominating committee procedures designed to foster optimum representation of industry and community stakeholders while resulting in a governing structure that is manageable and efficient including necessary checks and balances that protect the interests of the stakeholders and the mission of the organization. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 79 5. Establish Measurement Criteria for each element of the Strategic Plan (Both within the GMCVB and the community) including clearly defined leadership roles, time-lines, funding requirements. A. Timelines for Implementation. 5.A.J. It is recommended that such criteria be designated as Short-Term, Mid-Term or Long-Term Steps. B. Return on Investment Criteria. 5.B.I. Establish Return on Investment criteria and monitoring systems that supervise results and the impact of each of the Bureau's programs including a specific emphasis on defining High-Value Customers including Convention and Leisure Sales, Marketing & Tourism including Advertising, Research, Publishing, Internet and Web Marketing, Media Relations, Membership and specific niche programming. 5.B.2. Return on Investment Criteria should be established to: . Evaluate programs for their effectiveness based on established performance goals. . Establish a "Value Position" formula for the return on community resources invested and leveraged with the Bureau and other partners. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination 80 Implementation Phasing Goal #1 - Enhance the Destination's Tourism and Related Infrastructure and Continue to Develop and Expand Attraction Assets .. RROOR.iblePal1lli. St_v Short-Term Steos Mld.TermSteall . Lana-Term SteDs GMCVB A. Miami Beach Convention City 01 Miami Beach Center SMG Miami-Dade County I.A.l. Continue to support and . Secure Funding advocate lor the planned . Finalize Design Plan expansion 01 the Miami Beach . Assess Facility Convention Center as well as Competitiveness/ providing collaborative input and Needs assessment of the facility as possessing the latest and emerging state-ol-the-art services/facilities. GMCVB A. Miami Beach Convention City 01 Miami Beach Center SMG Miami-Dade County 1.A.2. Continue to monitor . Assess Industry Trends/Needs City of Miami industry trends, best practices . Develop Appropriate Incentive GMCVB Member Hotels as well as competitive Packages challenges to provide and . Develop Criteria to Monitor support incentives required in Effectiveness order to effectively compete. I GMCVB B. Other Meetings Facilities City 01 Miami Beach SMG 1.B.1. Continue to support and . Assess Industry Trends/Needs Miami-Dade County advocate for the optimum use . Assess Facility City of Miami and promotion of other meetings Competitiveness/ Needs GMCVB Member Hotels venues within the community. . Profile & Target "High Value" Customers GMCVB C. Airport/Seaport Productivity Miami-Dade County Miami Intemational 1.C.I. Continue to support . Assess Industry Trends/Needs Airport strategic alliances with Miami . Solidify Strategic Alliance Port of Miami International Airport and the Port Partners Miami Airline Carriers of Miami designed to maximize . Develop & Implement GMCVB Member Cruise the number 01 overnight visitors Integrated Sales & Customer Lines generated. Service Marketing Plans GMCVB Member Hote)s Involving All Partners GMCVB D. Attractions Attractions Alliance 1.0.1 Take an active role in . Conduct Assessment 01 monitoring the competitiveness Current "Attractions Package" of "attractions" assets and their (SWOT) relevance to the expectations of . Profile & Target "High Value" current or potential visitor Customers profiles. A Shared Vision: To be America's Premier Tropical, Cosmopolitan Destination Implementation Phasing Goal #1 - Enhance the Destination's Tourism and Related Infrastructure and Continue to Develop and Expand Attraction Assets fljlllonalble Partie. Strateav ... . Short-Term StellA Mld-Tel'lTl Stells LlIna-Tenn Stelll Miami-Dade County E. Beach Renourishment and State of Florida Revitalization Coastal Communities Beachfront Properties 1.E.l Ensure the 0 Establish/Strengthen "Coalition" GMCVB maintenance, protection and 0 Review/Assess Current Plan optimum accessibility of the 0 Establish Consensus on Next region's beaches by working Steps with local municipalities, County, State and Federal agencies to ensure that a proper and coordinated plan is in place. Miami-Dade County F. Way Finding and State of Florida DOT Transportation Local Municipalities GMCVB 1.F.l. Encourage, advocate 0 Establish/Strengthen "Coalition" and support the development 0 Review/Assess Current and expansion of a community- System(s) including Signage and wide way-finding program. Collateral Materials 0 Establish Consensus on Next Steps Miami-Dade County F. Way Finding and State of Florida DOT Transportation Local Municipalities GMCVB 1.F.2. Encourage, advocate 0 Establish/Strengthen "Coalition" Private Transportation and support the development . Concurrent with 1.F.l, and expansion of Review/Assess Current Public/Private Transportation System/Services services that assist in serving 0 Establish Consensus On Next visitor needs. Steps Miami-Dade County F. Way Finding and State of Florida DOT Transportation Local Municipalities 1.F.3. Forge a public/private 0 Establish/Strengthen "Coalition" partnership with stakeholders 0 Identify Funding Source to design an optimum and 0 Based on Findings! efficient funding mechanism to Recommendations of 1.F.l. & support transportation systems 1.F.2 Develop Overall Funding and services. Requirements A Shared Vision: To be America's Premier Tropical, Cosmopolitan Destination Implementation Phasing Goal #2 - Enhance the Visitor Experience ... RlsDon,lbls P*rtl., Slnl_v . . Short, Tsrm Step, Mld.Teml SteD, lbfia.Tetnl steve GMCVB A. Service & Attitude GMCVB Member Hotels Related Hospitality Industry 2.A.1. Support and advocate for . Establish/Strengthen Associations the creation and establishment "Coalition" of a collaborate 'Service & . Survey/Evaluate Current Attitude" culture within the Service Levels/Needs broadest possible scope of the . Identify/Review "Best hospitality industry ensuring that Practices" service levels and customer . Collaborate with perceptions exceed leading Stakeholders to Develop industry standards. Action Plan fDr Next Steps Miami-Dade County B. Taxi Service GMCVB Taxi & For Hire Vendors 2.B.1. Continue to take a active . Establish/Strengthen GMCVB Member Hotels and supportive role in the "Coalition" Miami International Airport ongoing commitment of ensuring . Survey/Evaluate Current Port of Miami the highest levels of Taxi and Service Levels/Needs Greater Ft. Lauderdale CVB for-hire service including . Identify/Review "Best Ft. Lauderdale/Hollywood operating standards, service & Practices' International Airport attitude and distribution systems . Collaborate with inctuding maximizing the arrival Stakeholders to Develop and departure of visitors at Ft. Action Plan for Next Steps Lauderdale/Hollywood International Airport. - GMCVB C. Repeat Visitors GMCVB Members Miami International Airport 2.C.1. Incorporate strategies in . Develop/Implement Port of Miami both research as well as service Research Methodologies to & attitude programs designed to Establish/Expand "Repeat support the maximum generation Visitor" Profile Including of "repeat visitors' to the Strengths, Weakness, destination. Opportunities & Threats. . Evaluate Funding and Develop Recommendations to Support Program to Target & Attract "Repeat Vislto~' A Shared Vision: To be America's Premier Tropical, Cosmopolitan Destination Implementation Phasing Goal #3 - Optimize Sales Marketing Activities Resulting in Maximum Performance and Results Resbonslble Parties ... Strateav > Short.Term St..... .. . Mld.Term SteDS Lonn_Term SteDS GMCVB A. Leisure Sales & Marketing 3.A.1. Design and implement a . Design Plan for FY 04-05 fully- integrated Sales & Marketing in conjunction with Plan in support of this desired Development of Program outcome while defining and of Work Utilizing Template targeting High Value Customers Outlined in SP Section III. that will optimize available resources. GMCVB A. Leisure Sales & Marketing Industry Stakeholders 3.A.2. Continue to grow domestic . I ncorporate Specific and international overnight visitors Strategies in Fully- while maintaining optimum Integrated Marketing Plan average daily room rates and & Program of Work occupancy performance for area . Monitor Results hotels. GMCVB A. Leisure Sales & Marketing Industry Stakeholders 3.A.3. Continue to focus on . Incorporate Specific growing summer and shoulder Strategies in Fully- overnight visitation. Integrated Marketing Plan & Program of Work . Monitor Results GMCVB B. Convention Sales & Services City of Miami Beach SMG 3.B.1. Design and implement a . Incorporate Specific City of Miami convention sales and service Strategies in Fully- strategy that targets the optimum Integrated Sales & conventions, meetings and events Marketing Plan & Program utilizing area Convention Centers of Work as well as specific meetings venues in partner hotels. GMCVB B. Convention Sales & Services Industry Stakeholders City of Miami 3.B.2. Expand current programs . Incorporate Specific and strategies designed to Strategies in Fully- stimulate and support generation Integrated Sales & of leads and bookings of shoulder Marketing Plan & Program and summer business. of Work GMCVB B. Convention Sales & Services 3.B.3. Design and implement a . Incorporate Specific comprehensive Convention Strategies in Fully- Services Plan that provides Integrated Sales & optimum service and coordination Marketing Plan & Program to meellhe needs of meeting of Work planners. delegates and vendors. A Shared Vision: To be America's Premier Tropical, Cosmopolitan Destination Implementation Phasing Goal #3 . Optimize Sales Marketing Activities Resulting in Maximum Performance and Results ...... Rellponslble Pertle. .. StrlIt8av ... Short-Term stan. Mld-nnn SteDs Lona-Term Steol GMCVB C. Research 3.C.1. Expand upon current . Evaluate Current research methods (intercept Research Models surveys) to validate and further . Design Additional define and profile visitors and Research Methodologies potential visitors. . Implement Program . Monitor & Evaluate Results GMCVB C. Research 3.C.2. Develop research models . Identify. Revised, that help define and delineate Expanded and/or New High Value Customers including Research Methodologies High Value Customers including in support of Strategy areas of interest, visitor . Incorporate Current & expeclations, seasonal travel New Research Models in patterns, party size and FY 04-05 Program of composition, related activities and Wor!< competitive destination. GMCVB C. Research 3.C.3. Develop research models . Identify Expanded and/or that further identify current "non- New Research visitors" to the destination. Methodologies . Incorporate Current & New Research Models in FY 04-05 Program of Work GMCVB C. Research . Identify & Implement 3.C.4. Develop research models Current, Expanded and/or that test and evaluate the New Research effectiveness of current and Methodologies proposed GMCVB advertising . Incorporate Current & strategies including targeted niche New Research Models in markets segments. FY 04-05 Program of Work GMCVB C. Research On-Line Partners 3.C.5. Develop GMCVB website . Design and Implement capabilities and menus and page- Capabilities As Part of view options to assist in New Website Expansion developing "profiles" of visitors & Redesign both in terms of quantitative traffic to and within the site and qualitative interests of users. GMCVB D. Funding Interlocal Partners . Identify & Strengthen Industry Stakeholders 3.0.1. Strengthen interlocal Coalition partnerships and maximize . Develop Process for prioritization. use and leverage of Establishing Prioritization tax dollars in support of and Leveraging of destination sales and marketing. Resources A Shared Vision: To be America's Premier Tropical, Cosmopolitan Destination Implementation Phasing Goal #3 - Optimize Sales Marketing Activities Resulting in Maximum Performance and Results . Resl>onslbte Partl. Sl/'llteav ... .. Short-Term Stens Mid-Term Stens Lona-Term SteDs GMCVB D. Funding 3.0.2. Evaluate the current . Design & Implement Membership dues and services Assessment structure identifying opportunities . Research & Identify "Best to increase member participation Practices" and investment. . Develop Recommendations for Next Steps GMCVB D. Funding 3.D.3. Develop and implement a . Research & Identify "Best comprehensive "sponsorship" Practices" program designed to generate . Identify & Prioritize private investment! sponsorship "Menu" of Opportunity opportunities. . Identify & Recruit Cooperative Partners . Design & Implement . Comprehensive Plan GMCVB D. Funding 3.0.4. Develop appropriate in- . Research & Identify "Best kind formulas to maximize partner Practices" investment and support. . Identify Opportunities to Expand Current "In Kind" Sources . Identify New "In Kind" Source GMCVB D. Funding 3.0.5. Develop a grant-seeking . Research & Identify "Best and foundation solicitation Practices" program. . Identify & Recruit Cooperative Partners GMCVB D. Funding 3.0.6. Expand current . Evaluate Current cooperative advertising programs Programs & "Cooperative and solicitation efforts to optimize Menu" investment and leveraged . Research & Identify "Best opportunities for cooperative Practices" partners. . Develop & Implement Expanded Program Offerings GMCVB E. Marketing 3.E.1. Produce a Market . Evaluate Current Assessment that will assist Research Methodologies identification and targeting of High & Finding Value Customers for sales and . Identify & Incorporate marketing efforts. Additional Methodologies . Produce Assessment A Shared Vision: To be America's Premier Tropical, Cosmopolitan Destination Implementation Phasing Goal #3 - Optimize Sales Marketing Activities Resulting in Maximum Performance and Results ResDonslble Parties StratenV Short. Term St.DS Mid-T.rm St..... l.onD-T.rm St...s GMCVB E. Marketing 3.E.2. Design and adopt a fully- . Develop Plan (Using integrated marketing plan for all Template in SP Section sales and marketing initiatives as III) as Part of FY 04-05 part of the upcoming FY 04/05 Program of Work budgeting and planning cycle. GMCVB E. Marketing 3.E.3. Continue evolution and . Design & Incorporate expansion of Supporting Strategies as .cosmopolitanltropical" themes for part of FY 04-05 Program the destination's Miami brand of Work while expanding opportunities to . Integrate "Theme" take advantage of strong brand Strategy Throughout All attributes of the variety and Supporting Programs diversity of Miami's Including Advertising, "neighborhoods" and sub-brands. Publishing and Website GMCVB F. InterneVWebsite Marketing 3.F .1. Continue the expansion and . Assess Current Website & evolution of the GMCVB website. Internet Marketing Strategies . Based on Findings - Design & Implement Comprehensive Program GMCVB F. InlerneVWebsite Marketing 3.F .2. Expanding "inleractive" . Incorporate Specific components resulting in a change Strategy into Overall from an informational channel to a Assessment & Expanded deliverable product for the Program consumer/visitor. GMCVB G. Professional Staff 3.G.1. Review and evaluate . Conduct Assessment current GMCVB personnel policies . Based on Findings, (including compensation and staff Recommend Next Steps development) that ensure maximum staff professionalism and performance. A Shared VIsion: To be America's Premier Tropical, Cosmopolitan Destination Implementation Phasing Goal #4 - Position GMCVB as "True Stewards" and "Voice" for Visitor Industry .> R..ilo"slb" Part'" .... Strateav Short.T.rmSwns Mld.Ttrm St.os Lo.....T.rm Swn. GMCVB A. Communijy Relations 4.A.1 Design, adopt and . Identify & Recruit implement a comprehensive "Strategic" Partners Community Relations Program . Design Program and as well as continuing to promote Incorporate in FY 04-05 the impact and importance of Program of Work the Visitor Industry and its partners. GMCVB B. Govemance 4.B.1 Ensure that GMCVB . Review IACVB Executive Committee. Board of Standards & "Best Directors and Standing Practices" Committees are representative . Assess Current and foster interaction wijh the Structure key sectors of the visijor industry and the community while providing for an efficient and responsible oversight of GMCVB operations and direction. A Shared Vision: To be America's Premier Tropical, Cosmopolitan Destination Implementation Phasing Goal #5 - Establish Measurement Criteria for each element of the Strategic Plan (both within GMCVB and the community) including clearly defined leadership roles, timelines, funding requirements R.,Don.lble p,rt'e. ... .. stratiiftV Short.Term Stilfts Mld.Term Steos Lona.Term SteDS GMCVB A. Establish timelines for Implementation 5.A. 1. Develop and . Develop & Adopt Short- periodically monitor Short-Term Term Steps & strategies leading to Mid-Term Monitoring and Long-Term Strategies. Methodologies . Based on Findings, Establish Time-Line & Work-Plan for the Identification of Mid- Term Steps GMCVB B. Return on Investment Crileria 5.B.1. Establish Return on . Design & Implement Investment criteria and Systems Based on monitoring systems that Findings Outlined in SP supervise results and the Section IV. impact of each of the Bureau's Programs. B. Return on Investment GMCVB Criteria 5.B.2. Evaluate programs for . Based on Findings and their effectiveness based on Performance. Establish established performance goals. a "Value Position" for Return on Community and Bureau Resources. A Shared Vision: To be America's Premier Tropical, Cosmopolitan Destination TARGET MARKET INITIATIVES/REDEPLOYMENT FY 04/05 GOAL 1: ENHANCE THE DESTINATION'S TOURISM INFRASTRUCTURE $ AND EXPAND ATTRACTION ASSETS RESEARCH Visit Florida quantitative research partnership "Miami Beach Experience" Visit Florida - Small Cities/Small Town Campaign National Heritage Area-Feasibility Study ERA Market Assessment Findings GOAL2: ENHANCE THE VISITOR EXPERIENCE Funding for Miami Beach Visitor Center currently operated by the Miami Beach Chamber $ Customer Service Initiatives $ Targeted Year long Service and Attitude Program for taxis and hospitality industry GOAL 3: OPTIMIZE SALES & MARKETING Ta'rgeted Initiatives $ Boutique Hotel Program Gay & Lesbian Tourism Research & Co-op Advertising Convention Sales Contract Tourism Sales Activities/Entertainment Representation Advertising Co-op Retail District Ad Campaign w/ parking - targeted distribution Year LO(lg Cultural Marketing: Bass Museum Marketing Cultural Leverage Cultural Tourism $ Collateral Support $ Miami Beach visitor guides Press kits & Facilities Guides FILM, FASHION & ENTERTAINMENT $ Trade Shows Funds budgeted to support production of Black Book and travel to select industry trade shows or events, In leveraged partnership with Miami-Dade County Office of Film & Entertainment, City of Miami Beach Film Office and others, Specific shows to be coordinated by the Film, Fashion & Entertainment Committee. Events/Festival Season $ Funds for the development and promotion of events that will stimulate summer and shoulder season visitation. Camp,Miami Beach Brochure Art Basel Miami Beach $ GOAL 4: POSITION GMCVB AS "TRUE STEWARDS" AND "VOICE" OF THE VISITOR INDUSTRY Marketing-Public Relations (local marketing initiative) $ TOTAL $ EXHIBIT B 2006 BUDGET 40,000 40,000 50,000 310,000 110,000 40,000 50,000 150,000 60,000 100,000 950,000 )> en :T III a; a. < w" 0" :J ~G) <=rS:: Dl() g,< oOJ ::J (J) ~ iij" ::J C"l ro -i o CT C1l )> 3 (I) ~ ,j" III 1I; -0 a; 3 ($" ~ -i o -c 0" !!!. () o '" 3 o -c g, iii :J o C1l Si :j" !!l. o :J ~ s: 8 "0 !!1. 3 0 5t~"O ro ro ro ::JCD~-I ~ < -. Q) !!!.Dla;", <::J::Jro -.C"l ro Dl !!!.ro (J)::J -_(J) QOODl "Cg~g aroDi< =>ro~ro -x..,.., ro"ODlO ~CD51CD C"l 0'-' -::J::J ~(J)_3 o - ::J Dl g (J) en _. ocnS _ro.... (") en S" Sin>co en 5. st ~ ro . . ()"U =() c:a~o ~~;5. oroC"lc: 3 "" eo C"l (D.-O..... ....-1::J)> (0)0(1) .... 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I "Cm a~ -Ill CDC" U1_ __ iii' -. ::r is: ::CD ::;,1Il CD UI UI C -..CiJ c 3 ::;, CD e:::;, ::;,- ceo CiJ3: .QCD c :!. ::;'1Il CD 0' 3 ., CD CD ::;, III -n U1::r CD CD 3 CD ::;, - o -.. - ::r CD en - ., III - CD ce ci' "tl III ::;, - OJ o - ::r :e ;::;: ::r ::;, C') s: o < OJ III ::;, c.. - ::r CD n o 3 3 c ::;, ;::;: '< - 3 "C CD 3 CD ::;, - III ~ o ::;, "tl ::r III UI ::;, ce ::;, n c c.. ::;, ce n CD III ., '< c.. CD :!! ::;, CD c.. Economics Res..rch Associates Second Draft Memorandum Report Date: August 25, 2003 To: Al West, Greater Miami Convention and Visitors Bureau From: Economics Research Associates Team RE: Task 4 - Identification of Additional Research Needs In the Market Assessment Report resulting from Tasks I through 3 of our Scope of Services, the ERA Team presented tourism market characteristics for Miami Beach, and compared them to visitor patterns in other areas of Greater Miami. In addition, ERA also compared some of the Miami Beach and Greater Miami visitor data to national and state trends. It was expected at the outset of our consulting study that the Market Assessment Report might receive relatively wide public distribution. Task 4 of the Scope of Services anticipated that there might be suggestions for additional research that could be conducted in the future, and directed the consulting team to prepare a memorandum for the staff of the GMCVB and the City. The consultant team raised approximately half a dozen issues in an initial draft of this memorandum. Through in-person discussions with City and GMCVB staff during the week of July 14'\ several other issues were added. This Task 4 memorandum identifies the additional research that could be conducted by the GMCVB in order to prepare future market assessments, as well as to inform the GMCVB's strategic planning process. For the vast majority of market research issues, the ERA Team discovered that relevant information has indeed been collected in recent years by the GMCVB that allows for quantitative analysis of the Miami Beach market as distinct from the Greater Miami area. By requesting specific crosstabulations of the existing data bases from the GMCVB's research contractor, most of the issues of concern to the City could be adequately addressed in the Market Assessment Report. There were six issues identified by the ERA Team in the initial draft of this memorandum that suggested additional research considerations. In no particular order, they are: I. Better tracking of the convention segment in the ongoing visitor surveys; 2. Collection of information regarding the boutique hotel market in Miami Beach; 388 Market Street. Suite 1580 San Francisco, CA 94111 (415) 956-8152 FAX (415) 956-5274 www..conr.'.com Los Ange 9ton DC London EXHIBIT "D" 3. More information on media preferences and influences on travel decisions; 4. Need for indicators oflifestyle segmentation in the visitor market; 5. Possibility of collecting income data as part of the demographic profile; and 6. Identification of the potential market that is not currently coming to Miami Beach. During the consultant visit to Miami Beach in mid-July, several additional research needs were added to the list for consideration. They include the following: 7. . Greater emphasis on economic value of various visitor market segments; 8. Focus on the international visitors; 9. Opposition research; 10. Conversion studies; and II. Strategic planning issues. Convention Visitors As the visitor characteristics data is currently collected through the intercept surveys, it is difficult to quantify the convention visitor market separately from the business traveler market. The convention visitor is treated as a subset of the business visitor, relying on a follow-up question to separate out convention purposes for travel, and therefore may be undercounted. The ERA Team reviewed survey instruments from other Convention and Visitors Bureaus to determine how the purpose of visit question could be changed to better assess convention visitation. The following is an example of a sample question addressing purpose of visit: "What is the main purpose of your visit to The Greater Miami Area? (INT: ACCEPT ONLY ONE (I) RESPONSE) a. Vacation/ Pleasure b. Attending convention, corporate/group meeting, seminar or conference c. Business only (other than any of the responses in b.) d. Visit Friends and Relatives e. Personal Reasons f. Cruise g. Sporting Event h. Medical Reasons I. Special Event j. Shopping k. Other Reason (specify )" Boutique Hotels Miami Beach's inventory of hotels and motels is unique due to the high number of small boutique hotels, and the current method of data collection does not capture this nuance in the Miami Beach market. The survey may be modified to specify the type of hotel/motel establishment so that the number of visitors staying in boutique hotels can Economics Research Associates SECOND DRAFT MEMORANDUM REPORT 2 be quantified. This would require some type of recognition by tourists of the term "boutique hotel." Media preferences The City of Miami Beach is interested in the media preferences of visitors to help determine where advertising dollars can have the greatest impact. The questionnaire could be expanded to include a question or two on the types of magazines and periodicals read by the visitors, and their use of the internet, TV/radio, and other media when making discretionary travel decisions. Lifestyle Segmentation The City of Miami Beach is also interested in lifestyle segmentation of the visitor market. There is a commonly held perception that the lesbian, gay, bisexual and transgender (LGBT) visitor market is significant to Miami Beach. ERA has worked with the City of San Francisco in the past; a destination for which the LGBT market is also commonly held to be significant. In our experience to date, we have found that this segment is not conducive to quantification through use of survey instruments. On the other hand, marketing programs to address lifestyle segments can be designed and implemented without requiring statistical documentation of segment size or dynamic. Income Many visitor surveys routinely ask tourists about their income. However, this demographic factor is not currently in use in the GMCVB survey. This could provide useful information about target market characteristics and could be gained through a relatively simple addition to the current survey instrument. Competitiveness and Targeting Non-Converted Travelers There are several issues raised by the City of Miami Beach that generally fall into the broad topic of destination competitiveness and reaching out to market segments that are not currently coming to South Florida. One aspect is identifying which destinations are competing with Miami Beach and Greater Miami in the minds of the market place. One indicator of this could be the inclusion ofa question in the existing survey research effort asking what other destinations the discretionary traveler considered before coming to Miami. While that might provide some interesting information, it will also miss the portion of the market that made a similar comparison but then decided on another destination. To reach beyond the existing visitor base in Greater Miami, a totally different research methodology would be required. On a one- time basis, it may make sense to engage a firm that conducts omnibus surveys (e.g., Market Facts, NFO Research) with an ongoing panel of respondents across North America. The sample could be restricted to geographic locations that are known to be good source markets for Greater Miami in order to increase the efficiency of the effort. Respondents could be asked to compare a few similar sunbelt destinations, and then rate preferences. Those not choosing Miami could be asked specifically why not. SECOND DRAFT MEMORANDUM REPORT 3 Economics Research Associates "High Value" Customers The GMCVB has been attentive to the economic value of different market segments in the past. For example, as Internet usage has grown in the tourism business, the GMCVB identified early on that those making reservations through the Internet tended to be more affluent customers and responded appropriately. Estimating the relative value of different market segments needs to continue and once the "high value" customers have been identified, the GMCVB should communicate which segments to target to the City of Miami Beach and the other partners in tourism promotion. International Customers Similarly, due to the high proportion of international visitors in the Greater Miami tourism mix, ongoing tracking of the various international segments needs to be done and communicated to the GMCVB's tourism promotion partners. Opposition Research On a broad national basis, the City of Miami Beach is interested in trends in competitive leisure destinations as a subject of future research efforts. At a more immediate level, the concern is with opposition research into such locally competitive destinations as Key West and Fort Lauderdale, and why potential customers are traveling there instead of Miami. Conversion Studies The City of Miami Beach has also suggested greater use of conversion studies. For example, a number of vendors specialize in studies of the rate of conversion of parties responding to paid advertising into actual visitors to the target area. Strategic Planning Issues The primary focus of the ERA Team's Market Assessment was on the analysis of Miami Beach visitation as distinct from other areas in Greater Miami. The City of Miami Beach would like the segregation of Miami Beach data from Greater Miami to continue to be carried forward (along with region-wide analyses) as the GMCVB's strategic plan is formulated. Other strategic planning issues include: identification of the target market segment(s) and how to position to capture the target clients; and an assessment of the adequacy of the GMCVB's research budget, including any need to purchase additional research. Recap Besides these few issues, the current survey research effort being conducted by the GMCVB produces the majority of market information sought by the City of Miami Beach. The types of cross tabulations conducted for the ERA Team's Market Assessment Report should definitely be run in future years to continue monitoring the Miami Beach market in addition to that for the Greater Miami area as a whole. Economics Research Associates SECOND DRAFT MEMORANDUM REPORT 4 FINAL REPORT: March 5, 2004 lIB Recommendations Board Size. The Bureau board is relatively large. Reducing the size of the Board, or more importantly the Executive Committee, could possibly make Board participation more meaningful. Governance. In the context of the last couple of contract renewals the City has negotiated increased representation on the Bureau's Board and on the Executive Committee. Miami Beach provides approximately one-third (ranging from 30 to 35 percent) of funding from the public interlocal partners, and representation on the Board and key committees is proportional to this one-third financial support. Even so, the City feels their influence over Bureau direction is still insufficient. On the one hand, the Bureau cannot cede majority control of the Bureau to a minority partner, for example functioning like a department of the City of Miami Beach, without alienating the other interlocal partners and the private contributors (both financial and in-kind) that are so essential to an effective national and international sales effort. On the other hand, Miami Beach also invests financially in the tourism industry by being the host to the majority of visitors (and bearing the General Fund cost impacts of visitation). The consultants recommend an implementation process to an optimal state would be to: I) Agree to specific goals and objectives through a shared strategic planning process, and measure progress towards those goals over time; 2) Establish a level of Bureau funding, reserving other portions of the $20+ rnillion in visitor-generated funds for General Fund costs and local Miami Beach programs; 3) Set a long term automatic formula to provide that funding to the Bureau; 4) With influence in proportion to financial support participate enthusiastically in the Bureau governance process, but on a daily operating basis let the Bureau pursue its mission of marketing all of Greater Miami to the larger world; and 5) Enhance the tourism industry development function within the City to handle those initiatives that are of most interest at the local Miami Beach level. Issue: GMCVB Ooerations and Evaluation Findings The GMCVB is within the norm for major bureaus in terms of: . Organizational structure, . Accounting practices, . Use of satellite marketing offices, . Size of membership, and Structural Assessment of the GMCVB ERA Project No. 14932 Analysis ofIssues Page IV-13 EXHIBIT E Exhibit F Current Title ( As of 10-01-2004) Number 0 Persons Holding Position Senior Vice President Convention Sales I Vice President, Convention Sales I Associate Vice President Convention Sales I Regional Sales Director I Director, Meetin~s Express I Director, Convention Sales 2 Convention Sales Manager 5 Associate Vice President, Tourism I Director, Tourism Sales 4 Coordinator Tourism Sales I 18 EXHIBIT F GREATER MIAMI CONVENTION AND VISITORS BUREAU "BUSINESS RECOVERY FUND" DEFINITION The GMCVB has established a fund that shall be used for business interruptions due to business risks and emergencies caused by civil and/or natural disasters. This fund shall be used to ensure ongoing bureau operations in order to benefit the visitor industry and our interlocal partners in case of any such emergency. This fund shall be used to develop new emergency advertising campaigns, strategies and progran1s while maintaining existing and necessary programs including the necessary staff for their execution. The President and CEO has the authority to direct and expend the Business Recovery Fund on an emergency basis, and is required to notify the Executive Committee of the Board either before, during or immediately after the emergency at the first meeting ofthe Executive Committee. EXHIBIT G POLICY STATEMENT March 22, 1989 This document constitutes a policy statement of the Greater Miami Convention & Visitors Bureau as it relates to the media and the Bureau's Interlocal Partners on the issues of -ttendance of~meetings of the Board of Directors and Executive Committee,' and of accessibility of information which may be contained in the files and records of the Bureau. The Bureau is incorporated under the laws of the State of Florida as a private not-for-profit organization and its contract for destination marketing services specifically precludes it from doing business as an agent of its Interlocal Partners. Regardless, and, in the spirit of cooperation, the Bureau recognizes the importance of providing the media and the Bureau's Interlocal'Partners access to Board and Executive Committee meetings and Bureau records without compromising its ability to successfully compete in the marketplace, nor its ability to function effectively. As has been the practice, representati v.es of the media and the Interlocal Partnership will continue to have full access to all meetings of the Board of Directors and Executive Committee, subject to the understanding and limitations outlined below: If at any time the Chairman of the'Bureau believes an item to be discussed is of such a sensitive and proprietary nature that it could hurt the Bureau I s efforts to bring business to the Greater Miami area or would impair the Bureau I s efforts to operate in an effective manner in reaching its goals and objecti vies, the Chairman may request that the matter be treated as confidential by those attending the meeting. In that situation, reporters may continue to sit in on that meeting and take notes, but would agree to wri -ce nothing without first discussing that intention with the Chairman. If, after conversations between the Chairman and the reporters, they are unable to agree on whether a stor! is warranted, the Chairman may take the matter to the senior editers of the news organization for discussion. The reporters will hold off writing a story, if any, until the issues have been fully discussed by the Chairman and the senior editors. In addition, the Bureau will also make all of its records available for insDection bv the media and the Bureau's Interlocal Partners subject: however; to the same limitations and exclusions set for-h above, and any disagreements will be resolved in a manner similar -c --at outli-ed f-= confidential matters arising from mee-cings of the Board 0: Directors and Executive Committee. EXHIBIT H Draft Copy For Discussion Purp....ses Listed below are recomrnendations for the major performance rneasures for the monthly and annual marketing report. RECOMMENDA TIONS FOR MONTHLY GMCVB PERFORMANCE REPORT REPORT HIGHLIGHTS Total Meetin2s Booked Total Est. Economic Impact Total Estimated Room Nights Leisure Visits as a Result of the Conversion oflnauiries to Call Center and Website Total Est. Economic Impact Number of Members Membership dollar value Media Publicity Generated Audience Impressions Impression dollar value Bookin2s/Meetin2s Convention Center Bookings/Meetin2s Estimated Room Nights Estimated Economic Impact Hotel Bookin2s/Meetings Estimated Room Ni2hts Estimated Economic Impact Special Event Bookin2s Estimated Room Ni2hts Estimated Economic Impact Total meetings Estimated Room Ni2hts Estimated Economic Impact Group Tour/Motorcoach Bookings Estimated Room Nights Estimated Economic Impact Total Bookings Estimated Room Nights Estimated Economic Impact Client Contacts/Calls Made Meeting Planners - Contacts/Calls Tour Operators. Contacts/Calls Travel Writers - Contacts/Calls Media Inquiries Serviced Greater Miami Conver" Performance Review a Pale 46 EXHIBIT I 6H MAH~H.~lL Ml:RD.'\U~11 Draft Copy For Discussion Purpos~s Leads Generated Convention Center Leads Generated Estimated Room Ni2hts Hotel Leads Generated Estimated Room Nights Tour Operator Leads Generated Estimated Room Nights Total Leads Generated Estimated Room Nights Fam Tours Meeting Planner Events Meeting Planner Clients Tour Operator Events Tour Operator Clients . Travel Writer/Media events Travel Writer/Media participants Site Inspections Meeting Planners Tour Operators Travel Writers/Media Convention Services Meetings Serviced (8) Total Delegates for Meetings Serviced Housing Ni2hts Serviced Housing Revenue Generated Registration Events Registration Revenue Total Housing and Registration Revenue Communications Travel Media Audience Impressions Generated S Value Ad Equivalency Travel Releases Issued Inquiries e:enerated Advertisin2 Audience Impressions Call Center Inquiries (phone, labels, mail) Website User Sessions Total Inquiries (Website, Calls) Total Visits as a Result of Conversion Resulting Economic Impact Website Re2istered Users Visitor Services Visitor Center Patrons Visitor Center Restaurant Reservations Made Reservation Web Page Visits Greater Miami Convention and Visitors Bureau - Performance Review and Evaluation .... 47 8M I M,\RSH..I\LL ~lllK 0.'\ llG II Draft Copy For Discussion Purposes Room Nilzht Reservations Made Room Nil!.ht Reservations (est. value) Ticket Purchases Made Ticket Purchases (est. value) Membership rotal Members Total Dues Revenue Renewal- Number of Members Renewal Revenue Retention Rate Loss Rate Number of New Members New Member Revenue Member Listinl! Fees (additional. and web) Event Income to Defray Costs of PI ann in I!. and Operating Membership Initiatives Total Membership Dollars Member Partnership Development Number ofPartners-Meetin2 Sales Events Number of Partners-Group Tour Events In-kind Services Total In-kind Services This comprehensive report will deliver annual results that should then be used as the initial benchmarking step in developing goals for the year ahead. Following the Monthly Marketing Report and the development of relevant productivity goals, the GMCVB should have a quick way for analyzing performance throughout the year against each predetermined goal. To this end. a Consolidated Marketing Analysis (CMA) is recommended. This one-page senior management report tracks all productivity categories. comparing the annual goal for each program, against monthly and year-to-date results. The CMA serves as a comprehensive management tool for the CEO in tracking and reviewing ongoing success of actual work against goal on a monthly and quarterly basis. In the final analysis, the marketing budget should allocate budgeted resources against each market based on each segment's prioritized return on investment. Greater Miami Convention and Visitors Bureau - Performance Review and Evaluation Page 48 8M MAM~H .-\LL M L'RO,"LlGlf cJ-oo If - 2j707 OFFICE OF THE CITY ATTORNEY <6it ef J/Oomi 1JmM F L o R o A MURRAY H. DUBBIN City Attorney December 29,2004 Telephone: Telecopy: (305) 673-7470 (305) 673-7002 Alvin L. West Sr. Vice President and CFO Greater Miami Convention and Visitors Bureau 701 Brickell Avenue, Suite 2700 Miami, Florida 33131 ()~l" ., /I <Oo;r Re: Final GMCVB Agreement (2004 - 2009) Dear AI: I am enclosing three (3) original copies of the above-referenced Agreement, which has also been reviewed and approved by the City Manager and Christina Cuervo. In communicating with Jorge and Christina, I have been asked to convey to you that the attached contract represents the final, negotiated agreement between the parties. Please review the attached, and have executed by the appropriate authorized individuals on behalf of the Bureau. Additionally, please forward the attached three (3) originals back to my attention, and I will have same executed by the Mayor and City Clerk, and forward a fully executed original to you. Should you have any questions or comments regarding the above, please do not hesitate to contact me. ~e truly y / ~. 'Ra I J. Aguila First Assistant '~C~t RJAled c: Jorge M. Gonzalez, City Manager Christina Cuervo, Assistant City Manager Max Sklar, Assistant Director of Tourism and Cultural Development 1700 Convention Center Drive -- Fourth Floor -- Miami Beach, Florida 33139