here - Coronado Tourism Improvement District

CoRonADo TouRISm ImpRovemenT DISTRICTFY13 AnnuAl RepoRT, ApRIl 2013C T I D A n n u A l R e p o R T F Y 1 31

Table of ContentsLetter from the Chairman...........................................................................3Introduction................................................................................................4SECTION 1: FY13 Activities and achievements......................... 5As Promised...............................................................................................5Budget.......................................................................................................5Administration............................................................................................5Competition...............................................................................................5Target Demographics.................................................................................6San Diego Tourism Authority Partnership..................................................6Destination Marketing................................................................................6Marketing Study.........................................................................................7Public Relations..........................................................................................7Bookkeeping/Taxes/Accountability............................................................8Collaboration.............................................................................................8Grants/Giving Back....................................................................................9Mobile App................................................................................................9Way-Finding Signage...............................................................................10Social Media.............................................................................................10Annual CTID Budget................................................................................11Section 2: FY14 Service Plan.................................................... 12Advisory Board.........................................................................................12Revenue...................................................................................................12San Diego Tourism Authority (SDTA).......................................................13Local Marketing.......................................................................................13Public Relations........................................................................................14Long Term Planning.................................................................................14Community Grants...................................................................................15Accounting...............................................................................................15Goal-Setting.............................................................................................15In Closing.................................................................................................15C T I D A n n u a l R e p o r t F Y 1 32

Honorable Mayor TanakaAnd Members of the City CouncilCity of Coronado1825 Strand WayCoronado, CA 92118Dear Mayor and Council Members:It is with great pleasure that I write to you on behalf of the Advisory Board of Directors for theCoronado Tourism Improvement District. I always look forward to this time of year when ourBoard of Directors reflect on past accomplishments and prepare for more. Additionally, sinceyour approval for our organization to move forward as an individual non-profit corporation, wecontinue to be a more nimble and flexible group.It is my pleasure to present the FY12-13 Annual Report and Service Plan of the CoronadoTourism Improvement District. As you read the Report you’ll see how the CTID not only fulfilledits Special Services Agreement with the City, but many of the goals were completed in the firstfive months.Since your approval last May, the Board of Directors has worked diligently in the best interestof the assessed hotels to promote tourism in Coronado, especially in the off-season.Results and Accomplishments:• Hotel occupancy grew 5% during the calendar year 2012• Businesses averaged a 6% growth when marketing was in the field• Sales tax grew 4% during Q3 2012• The Board received the first version of a way-finding signage study, andcontinues to work with City staff to see implementation of this project• Launched the CTID app, a frequently used guide for Coronado visitorsStill, more can be done.C T I D A n n u a l R e p o r t F Y 1 3Our Service Plan proposes ways the Advisory Board hopes to improve our marketingefforts for greater impact and cost efficiency. They certainly do not settle for status quowhen it comes to setting goals and initiating strategies.The Advisory Board is inspired by the Report that follows and the promise that it holds.Sincerely,Todd ShallanChairman of the Advisory Board3

INTRODUCTIONIn July 2010 the Coronado Tourism Improvement District (CTID) was formed under the Parking andBusiness Improvement Area Law of 1989. Its purpose is to fund, implement and measure strategiesthat promote Coronado as a year-round destination for visitors from across the bridge and across thecountry. Specifically, the CTID works to improve occupancy in Coronado hotels and as a by-product,the vitality of our community.Boundary:Funding:Assessees:The CTID is city wide, serving each business district equally.½% guest assessment at hotels with over 90 rooms. No funding comes from theCity of Coronado, local businesses, residents or the State of California. The CTIDdoes not fundraise, pursue grants or accept donations.Hotel del Coronado, Loews Coronado Bay Resort, Coronado Island Marriott Resort& Spa and Glorietta Bay Inn.Governance: Unpaid nine-member Advisory Board comprised of representatives from thefour assessed hotels, two at-large members and one representative fromCoronado Historical Association/Coronado Visitor Center, Coronado MainStreetand Coronado Chamber of Commerce:Todd Shallan, Hotel del Coronado, ChairmanTim Herrmann, Coronado Island Marriott Resort & Spa, Vice-ChairEddie Warner, Coronado MainStreet Representative, TreasurerPhil Monroe, Coronado Historical Association/Visitor Center Representative, SecretaryBrian Johnson, Loews Coronado Bay ResortCamille Gustafson, Glorietta Bay InnDenise Schwab, Coronado Chamber of Commerce RepresentativeMary Ann Berta, at-large MemberDavid Spatafore, at-large MemberC T I D A n n u a l R e p o r t F Y 1 3Compliance: CTID meetings are held the first Thursday of each month at 2pm in CouncilChambers. Under the Brown Act the meetings are open to the public and aforum is provided should someone wish to speak. The Board launchedCoronadoTourismDistrict.org to distribute and archive meeting materials.Budget: $545,000 of which $330,000, or 50%, whichever is greater, is invested in aservice contract with San Diego Tourism Authority (formerly San DiegoConvention and Visitors Bureau.)Term: July 1, 2012 to June 30, 2013Reporting: The CTID submits four quarterly reports and one annual report each year.4

This annual report documents the activities and accomplishments made during FY13 as wellas the fulfillment of the Special Services Agreement between the CTID and City of Coronado.A service plan, outlining scope of work for FY14 and its projected budget, will follow.SECTION 1:FY13 ACTIVITIES AND ACHIEVEMENTS–AS PROMISED–The fiscal year is far from over but the CTID has already completed anumber of goals outlined in FY12 Annual Report and Service Plan:• Developed and delivered free Visit Coronado mobile app• Freshened its local marketing campaign artwork• Enlisted more businesses to enhance sample of marketing study• Promoted alternate routes to and through Coronado• Reconsidered summer shuttle program for improved usage and ROI• Furthered an initial way-finding signage study• Developed strategy for guests who use iPad and other tablets–BUDGET–In FY12, the CTID assessments totaled $517,677, a 6% increase over the projected total of $488,000.In FY13, the Board projected a 5% revenue increase over FY12 actuals to $545,000.At this time the assessments are as forecasted, within 1% of projections. Because there is nosurplus or deficit the Board did not reforecast, nor did it make any changes to its plannedmarketing strategies.–ADMINISTRATION–Since its debut, the CTID Board has invested the vast majority of its revenue on strategies thatdirectly impact the quantity of guests that visit Coronado. In FY13 just 16% was spent on theadministrative operations of the CTID, 84% of revenue was applied to marketing, advertising,public relations and the Board’s mission to boost hotel occupancy during the off-season.In FY13 it became necessary for the CTID to rent office space for daily operations, planningmeetings and file storage. Although the cost was not budgeted, the Board vetted and approvedto sublease from Coronado Chamber of Commerce at 1125 Tenth Avenue.The CTID’s largest administrative expense is that of an independent contractor who supervisesthe Special Services Agreement with the City and day-to-day operations of the CTID. TheExecutive Director negotiates with San Diego Tourism Authority (SDTA) to design, executeand measure campaigns to attract overnight guests to Coronado hotels. He also plans andimplements the local marketing platforms and administers the finance, research, communityoutreach and public meetings of the organization.C T I D A n n u a l R e p o r t F Y 1 3–COMPETITION–No one should assume guests will automatically visit Coronado. Effective budgetingand planning is necessary because in San Diego alone, there is an abundance of worthyattractions and destinations that compete against Coronado for guest visits:• Historic destinations such as Balboa Park or Old Town• Family destinations such as Legoland and San Diego Zoo• Retail destinations such as UTC or Seaport Village• Dining destinations such as Little Italy and Gaslamp• Beach destinations such as Del Mar or La Jolla5

–TARGeT DemoGRAphICS–The CTID Board works very closely with San Diego Tourism Authority to attract visitors withinthese parameters:• Leisure (non-business, non-group) guests for hotels• Guests typically between 25-54 in age• Average household income of over $110,000• Living in LA, Orange County, Phoenix, San Francisco• Mostly available to visit Coronado outside of summer–SAn DIeGo TouRISm AuThoRITY pARTneRShIp–In June 2012 the Board heard a proposal from San Diego Tourism Authority based on a projectedbudget of $330,000. The Board approved these itemized allocations for the marketing, publicrelations and entire scope of work from SDTA:Program Management (administrative, research & planning) $20,000Public Relations $60,000SanDiego.org/Coronado landing page 0Marketing campaigns $203,220Creative development/design $25,000MeringCarson production and commission $21,780–DeSTInATIon mARKeTInG–In calendar year 2012 the CTID marketingefforts contributed to over 409,000 roomnights at the four assessed hotels.The Board met with SDTA to build uponthe successes of the previous year. Onceagain the focus was on Los Angeles,Phoenix and Orange County (the marketsthat generate the greatest number ofprevious guests). San Francisco wasadded to the mix for its proximity toCoronado as well as its affluent residents.The goal was to utilize the most costeffectivetools for increasing tourismbetween Labor Day and Memorial Day(the off-season).Let your smile bloom in a worldcalled Coronado, where the daysare filled with small-town charmand white-sand beaches go onforever. To start planning yourgetaway to a place set apart,visit sandiego.org/coronadoFunded by the Coronado Tourism Improvement District.C T I D A n n u A l R e p o R T F Y 1 3Unable to afford ads in Sunset Magazine,Westways and radio ads in Phoenix,these initiatives were negotiated andapproved:• Targeted banner ads on TripAdvisor.com and VirtualTourist.com plus keyword searchon Google.com and Yahoo.com (343,780 impressions, $53,000)• Geo-targeted ads in Travel + Leisure, Food and Wine, Elle Décor, Town and Countryand Real Simple (4,086,800 impressions, $89,933)• Four-page inserts in LA Times, Arizona Republic, San Francisco Chronicle,Orange County Register (400,000 impressions, $60,703)6

The marketing efforts of the CTIDcontributed to an average 6% growthfor local businesses during October,November and December 2012.The Executive Director presented his marketing recommendationsfor increasing the number day-visits from San Diegans.In July, the Local Marketing Subcommittee approved a newcampaign titled “Come and Play Across the Bay.” The overallstrategy featured a diversified media plan:• Four-page inserts in the North County Times (100,000impressions, $11,000)• Traffic sponsorships on 13 San Diego radio stations(1,761,000 impressions, $20,000)• Targeted banners ads and email blast platform fromUTSanDiego.com (3,150,000 impressions, $15,748)• Full page ads in San Diego Magazine and San DiegoHome and Garden (311,840 impressions, $20,500)• Lighted signage at Int’l Visitor Center, near the Ferryto Coronado on Harbor Drive (141,000 impressions, $4,500)–MARKETING STUDY–Twice each year the CTID fields an independent study to quantify the return on its marketinginvestments. In Fall of 2012 the year-over-year revenue percentages of 52 Coronado businesseswere collected and tabulated by the Executive Director.C T I D A n n u a l R e p o r t F Y 1 3The conclusion was the marketing efforts of the CTID contributed to an average 6% growth forlocal businesses during October, November and December 2012. Gains made in November(11%) outnumbered October and December combined (9% total). The dining category grewthe most (9%) followed by recreation, hotels, and retail. For the first time baysidebusinesses grew faster than those in the downtown village.–PUBLIC RELATIONS–Just prior to Memorial Day Weekend Coronado was voted the #1 Beach in America.With the announcement came national and international press coverage lastingthroughout FY13. This distinction was due in part to the CTID’s public relations (PR) teameducating Dr. Stephen Leatherman, aka Dr. Beach, America’s foremost beach expert.7

New international non-stop flights to San Diego from London and Tokyo were announced inFY13. Travel columnists, reporters and bloggers in the UK and Japan were quickly enlisted forcoverage by the CTID PR team.Over 30 writers, broadcast talent and news assignment editors have reported from Coronadoafter receiving carefully crafted news releases. Each season afforded fresh content and eventsfor the CTID PR team to use to keep Coronado in headlines. To date, public relations mediacoverage was valued at $1.8 million. It is expected to reach $2 million, doubling the total in FY12.The list of high profile media outlets that have provided features, articles and mentionsof Coronado includes:New York Times Univision Los Angeles TimesTravel Channel Today Show San Diego MagazineDallas Morning News Travel Magazine Irish Sun NewspaperGood Morning America Kyodo Japan AAA Westways–BOOKKEEPING/TAXES/ACCOUNTABILITY–In the most recent fiscal year the CTID strengthened its financial accountability and brought itcloser to home. In July, Island Bookkeeping was retained to serve as an independent resource forbookkeeping and financial reporting. At the same time, Considine and Considine, an accountingfirm that serves a number of Coronado organizations, was retained to file the CTID’s tax returns.As a part of the CTID’s agreed upon procedures with the City, the Board maintains a series ofsafeguards that promote transparency and security. The Treasurer approves all payables preparedby the Executive Director. All checks over $100 must be co-signed by any combination of theChairman, Treasurer and Executive Director. Bookkeeping and bank statement reconciliation arehandled off-site by Island Bookkeeping.–COLLABORATION–Beyond the CTID grants that support Coronadoevents, the Board purposefully shares itsresources and opportunities. Again in FY13 theCTID promoted Coronado including some of itsorganizations. Examples include:• Providing video/photo assets to CoronadoFloral Association, Coronado Chamber ofCommerce and Coronado MainStreet sothey can better market their annual eventsC T I D A n n u a l R e p o r t F Y 1 3• Promoting the digital distribution of theCoronado Visitor Guide and CoronadoHoliday Guide to 76,000 San Diegans• Including Lamb’s Players Theatre,Coronado Community Center andGlorietta Bay Inn in holiday TV coverage• Profiling all tourism-based businesses andcommunity events on Visit Coronado app• Featuring a variety of new Coronado businesses in marketing• Sharing photo assets with the City of Coronado for outreach to residents8

In February 2013 the Board approvedplans to expand the app so visitors can useiPads and tablets to discover Coronado.–GRANTS/GIVING BACK–Since 2010 the CTID has granted $52,000 to Coronado events that improve hotel occupancyduring the off-season for tourism. At their first meeting of the FY13, the Board deliberated eachrequest and awarded $4,000 community grants to each of the following:• Coronado Historical Association Art Walk• Superfrog Inc. Superfrog and Superseal• Coronado Chamber of Commerce Holiday Open House• Lamb’s Players Theatre An American Christmas• Coronado School of the Arts Nations of San Diego Int’lDance FestivalC T I D A n n u a l R e p o r t F Y 1 3–MOBILE APP–As with all of its marketing tools, the CTID launched the Visit Coronado mobile app to improvehotel occupancy. It is intended to navigate overnight guests toward shops, restaurants,services, parks, museums and events beyond hotel property. Local businesses are notcharged to appear within the app and the app is free to all users.Since its launch in early FY13, the capability of the app has grown to include detailedbusiness hours, restaurant menus and even augmented reality. These additions haveresulted in over 10,000 downloads/updates.In February 2013 the Board approved plans to expand the app so visitors can use iPadsand tablets to discover Coronado.9

–WAY-FINDING SIGNAGE–When implemented properly, a way-finding program can reduce vehicle usage, improvesafety, balance spending in all districts and help visitors discover landmarks they’d easily miss.As to not burden the City with the expense, the CTID commissioned a preliminary study onway-finding in Coronado. Eighteen organizations, both civic and private, provided their opinionsand shared their expectations.In August the firm that lead the project (Merje) presented its initial findings to the CTID andthe contributing stakeholders. City Council will hear a complete report and options for movingforward.–SOCIAL MEDIA–In FY13 the CTID launched the Coronado Tourism Facebook page to accompany its presence onTwitter. So it does not duplicate efforts of other Coronado organizations, the CTID pages mostlyrepurpose guest comments about our community. In effect, those who share their Coronadoexperience become brand ambassadors. No amount of advertising is more genuine or costeffective.C T I D A n n u a l R e p o r t F Y 1 310

A N N U A L C T I D B U D G E TFinal Budget Pacing Requested Projected ProjectedFY12 FY13 FY13 FY14 FY15 FY16REVENUECTID Assessment $517,682 $545,000 $545,000 $545,000 $560,000 $576,000Balance carry forward $80,776 $4105 $2,755 $1,963 $1,663 $3,363TOTAL REVENUE $598,458 $549,105 $547,755 $546,963 $561,663 $579,363EXPENSESMARKETINGNational Marketing*Advertising Campaigns $253,304 $203,000 $203,220 $201,000 $211,660 $220,115Public Relations $60,000 $60,000 $60,000 $60,000 $60,000 $60,000Creative Development $25,000 $25,000 $25,000 $25,000 $20,000 $20,000SDTA/MC Fees, Research & Images $20,000 $42,000 $41,780 $42,000 $48,340 $49,885National Marketing Total $358,304 $330,000 $330,000 $328,000 $340,000 $350,000Local MarketingAdvertising Campaigns $72,067 $75,000 $71,415 $73,000 $75,000 $75,000Creative Development $5,994 $11,605 $9,997 $5,000 $5,000 $7,500Local Marketing Total $78,061 $86,605 $81,412 $78,000 $80,000 $82,500Way-Finding Signage Study $29,850 0 0 0 0 0Mobile Application Development $9,015 $5,000 $2,608 $7,500 $5,000 $5,000Sub-total $475,230 $421,605 $414,020 $413,500 $425,000 $437,500OPERATIONSExecutive Director $70,000 $70,200 $73,510 $72,350 $72,350 $72,350Admin. expense $2,186 $5,000 $3,968 $3,000 $4,000 $4,000Accounting $1,075 $750 $3,300 $1,250 $1,250 $2,000Legal $315 $750 $225 $500 $500 $500Insurance $2,448 $2,500 $2,124 $2,500 $3,000 $3,000Rent $3,600 $7,200 $7,200 $8,400Sub-total $76,024 $79,200 $86,727 $86,800 $88,300 $90,250GRANTSCommunity Grants + Promotion Sub-total $19,449 $20,000 $20,045 $20,000 $20,000 $20,000TOTAL Expense $570,703 $520,805 $520,792 $520,300 $533,300 $547,750GROSS OPERATING PROFIT Sub-total $27,755 $28,300 $26,963 $26,663 $28,363 $31,613OTHERContribution to Long Term Planning Fund $25,000 $25,000 $25,000 $25,000 $25,000 $25,000BALANCE $2,755 $3,300 $1,963 $1,663 $3,363 $6,613PLANNING RESERVE FUND (Cash On Hand)Long Term Planning Fund $25,000 $50,000 $50,000 $75,000 $100,000 $125,000* Scope of SDTA work to be negotiated

To date, public relationsmedia coverage wasvalued at $1.8 million.It is expected to reach$2 million, doubling thetotal in FY12.SECTION 2: FY14 SERVICE PLANSection 1 of the CTID Annual Report documents the accomplishments of the CTID Board of Directorsduring FY13. Section 2 will outline their plan to build upon those achievements during FY14.–ADVISORY BOARD–The make-up of the CTID Board is the perfect balance of small and large business; a healthy mix ofretail, dining and lodging. It also includes representatives from several business districts (Ferry Landing,Bayside, Downtown and The Strand.) At-large members Mary Ann Berta and David Spatafore areexpected to request extending their current term beyond June 30th, 2013. No other changes areanticipated.The Board of Directors respectfully requests continuation of the CTID for FY14 under the terms ofour existing ½% assessment and Special Services Agreement with the City.C T I D A n n u a l R e p o r t F Y 1 3–REVENUE–The Board projects a flat growth for FY14 ($545,000) because of unstable market conditions. Thetourism funds that were frozen by San Diego Mayor Bob Filner have caused the cancellationof a much-needed $5 million campaign to market San Diego nationally. Coronado will realizesome loss in spring and summer visits. The precautionary grounding of Boeing aircraft will lowerthe number of Japanese guests locally. Further, nearby destinations such as Los Angeleshave seized the moment and escalated their marketing efforts at the expense of San Diego.These setbacks are likely temporary, but they will have immediate impact on budgetprojections for the CTID. A conservative approach is wise. In FY13 the Board anticipatescompleting the year as budgeted. FY13 will likely close without a surplus of funds,finishing as planned with $545,000 in collected assessments.12

In calendar year 2012 the CTID marketingefforts contributed to over 409,000 roomnights at the four assessed hotels.–SAN DIEGO TOURISM AUTHORITY (SDTA)–In FY13 the partnership between the CTID and SDTA generated healthy debate when evaluatingstrategies and costs. The Board is confident in the ability and strategic effort of the SDTA in attractingovernight hotel guests.When compared to day-visitors from San Diego, overnight guests are highly coveted because theyspend more on lodging, meal, activities, gifts and transportation services. (The longer one stays, themore one spends.) Overnight guests have a greater impact on sales tax in Coronado plus they are thesole source of funding for Coronado transient occupancy tax (TOT).In FY14 the Board will meet with SDTA to review:• The effectiveness of FY13 campaigns to increase off-season hotel occupancy• New media options for marketing Coronado• Further penetration in existing markets• Launching campaigns in additional marketplacesC T I D A n n u a l R e p o r t F Y 1 3Throughout the year the Executive Director will work closely with SDTA to reiterate the Board’sexpectations, approve campaign artwork and verify delivery of services.The Board plans to match its FY13 investment, budgeting $328,000 for national marketing effortsin FY14. In June the Board will meet with SDTA to choose specific campaigns, media and tools.–LOCAL MARKETING–In FY13 the Board approved $75,000 to attract day-visitors from San Diego. This includedefforts to promote the Ferry, the Silver Strand and mass transit as alternative ways to reachCoronado.13

For FY14 the Board will:• Hear recommendations first evaluated by Local Marketing Subcommittee• Explore new media options to sharpen platforms previously used• Negotiate further savings when possible with vendors• Enhance the awareness of dining in “Come and Play…” campaignIn the forthcoming year $73,000 has been budgeted for the local marketing of Coronado in SanDiego County. The Executive Director will present his recommendations for FY14 based on thesuccess of FY13 efforts.–PUBLIC RELATIONS–The Board is thrilled with the efforts of the PR teams to generate articles, features and columns thatpromote Coronado. Even greater gains could be made in FY14 by:• Investing further in video/photo assets of Coronado press kit• Returning to markets such as Dallas and Houston (cut because of cost)• New outreach in Denver and Las Vegas• Exploring TV infomercial opportunities in Arizona and ColoradoAlthough PR is included in the scope of work from SDTA, it receives special attention as if it was a thirddivision of marketing that accompanies the CTID’s national and local efforts.–LONG TERM PLANNING–At the end of FY12 the Board seeded a Long Term Planning Fund with $25,000. Their goal is to add anadditional $25,000 in subsequent years, including FY13. The balance at the end of FY13 will be $50,000.This budget was created to fund future projects. Examples could be:• A summer shuttle program that lessens vehicle usage• A way-finding signage program that further promotes walking• A restaurant strategy that better positions Coronado as a dining destination• Studies to measure visitor satisfaction and/or economic impact of tourismIn FY14, the Board plans on contributing another $25,000. At the close of FY14 the grand total could be$75,000 to fund the initiatives above or other opportunities that present themselves.C T I D A n n u a l R e p o r t F Y 1 314

–COMMUNITY GRANTS–The Board believes their community grant program providesdividends for both local businesses and the grantees:• Generating overnight guests for the assessed hotels• Delivering greater awareness, attendance andprofitability of Coronado events• Promoting spending at restaurants, shops andservices near the event• Improving cultural desirability of Coronado forguests and residentsIn February the Board improved the application process by allowing oral presentations from thoserequesting grants. This will allow the Board to obtain even more detail during the decision-makingprocess.–ACCOUNTING–In FY14 the CTID will maintain the safeguards already in place that assure financial transparencyand security. Two new parties, Island Bookkeeping and Considine and Considine continue toprovide objective layers of financial control.To comply with the Brown Act, assessment totals and quarterly financial statements will be madepublic and meeting attendees may comment on the reports.–GOAL-SETTING–Three years into its existence the CTID has proven to be progressive with goal-setting. A review ofprevious Annual Reports demonstrates the Board willingness to set goals that are ambitious butobtainable. In FY14 their goals include:• Championing way-finding signage to benefit visitors and residents alike• Investigating cost-effective systems that shuttle guests across districts• Launching digital tools to accommodate tablet users• Embellishing the image and awareness of Coronado dining category• Developing international outreach and efforts–IN CLOSING–Market conditions come and go. The recession that devastated hotel occupancy and localbusiness revenues is subsiding. Promoting tourism in Coronado delivers compelling dividendsfor businesses during the off-season and rewards for the City throughout the year. Approvingthe CTID for FY14 will provide both tangible and intangible results:C T I D A n n u a l R e p o r t F Y 1 3• As a by-product of consistent hotel occupancy, nearby restaurants, shops and servicesenjoy a steady stream of customers during the off-season• The City benefits from an increase in tax from additional consumer visits andtransactions• Tourism amplifies market desirability. Residents and commercial ownersenjoy greater property values• Funds from tourism contribute to the “livability” of our community and theupkeep of Coronado’s infrastructure15