GVB Board Packet: October 8, 2015

Transcription

1 Mail at Judi Won Pat Mail - GVB Board Packet: October 8, 2015 Speaker Won Pat <speaker@judiwonpat.com> GVB Board Packet: October 8, 2015 Speaker Won Pat <speaker@judiwonpat.com> To: Guam Legislature Clerks Office <clerks@guamlegis!ature.org> Fri, Oct 9, 2015 at 3:13 PM /9/2015Guam Visitors Bureau Pursuant to Title 5 Ch 8 Section of the Guam Code Annotated; board Packet of October ; Agenda; Exhibit A: Board minutes dated September 10, 2015; Exhibit B: Treasurers report; Exhibit C: Greater China minutes; Exhibit D: JMC minutes; !tern 1: GVB Board Resolution ;!tern 2: TAF appropriations from FY2009 through FY2016; Item 3: GVB FY2016 Budget; Item 4: Cultural & Sports Ambassador Program Rules & Regulations; Item 5: GVB Scuba Marketing Strategy [Quoted text hidden) Ufisinan I Etmas Ge'helo'Gi Lihes!aturan Guahan Office of Speaker Judith T. Won Pat, Ed.D. Kumiten ldukas!on Tinakhelo', Kottura, Laibirihan Pupb!eko siha yan Asunton Famalao'an 155 Hesler Place, Suite 201, Hagatna, Guam Tel: (671) Fax: (671) www,guam!egis!ature.com I speaker@judiwonpat.com 10 attachments ~ AGENDA_ pdf 395K ~ Exhibit_A_MINUTES_ pdf 1331K fl.) EXHIBIT_B_FY 2016 Cash Position pdf w 114K ~ EXHIBIT_C_GCMC Minutes Final.pd! 5345K "'' EXHIBIT_D_JMC Sept 8, 2015 Minutes.pd! <:1 1030K "'-' ITEM_1_GVB Resolution (1).pdf i:j 119K ~ ITEM_2_TAF-Appropriations Sheet1.pdf 58K ~ ITEM_3_GVBFY16_BUDGET.pdf 118K Item 4_600_ pdf 697K ~ ITEM_5_Guam Dive White Paper pdf 1383K 0938 https :/Im ail.google.corn/rnai l/u/ol?ui = 2&i k = 684dd7 ee87&view= pt&sear ch= i nbox&rnsg= 1504b043fdf324d1 &si m I= 1504b043f df324d1 111

2 1 REGULAR BOARD OF DIRECTORS MEETING Thursday, October 8, :00 p.m. Guam Visitors Bureau Main Conference Room A G E N D A I) CALL TO ORDER II) MINUTES OF THE PREVIOUS MEETING Exhibit A Approval of minutes of the previous Board of Directors meeting dated September 10, III) CHAIRMAN S REPORT IV) GENERAL MANAGER S REPORT V) TREASURER S REPORT Exhibit B VI) REPORT OF THE BOARD COMMITTEES A. EXECUTIVE COMMITTEE IMEX America 2015 Motion to ratify Executive Committee s approval for travel for two marketing staff to attend the IMEX America at the Sands Expo in Las Vegas, Nevada from October 13-15, Cost is approximately $6, from account US-SMD023 Airfare: $1,900 x 2 pax $3, Per Diem Lodging + M&IE: $ x 6 days x 2 pax $2, Misc. Expenses $ Total $6, Background: With the new Dusit Thani Guam that opened their doors this past summer, Guam now has the facilities to hold MICE groups with Dusit Thani s convention hall that holds up to 1,000pax. The Guam Visitors Bureau (GVB) plans to attend the IMEX America that will be held at the Sands Expo in Las Vegas, Nevada from October 13-15, This is an opportune time to attract more MICE participants from the U.S. and source markets. This will be the first time GVB will be attending IMEX America as an exhibitor. IMEX is a worldwide exhibition for incentive travel, meetings, and events that is committed to providing outstanding business opportunities for exhibitors and buyers. IMEX has two exhibitions a year, in Frankfurt, Germany and in America. IMEX America is Americas largest MICE Expo with over 10,300 participants, 2,900 buyers from 54 countries in 2014; an increase of 8% over GVB will have the opportunity to meet qualified buyers from North America and around the world within the 3-day event. This year, GVB expects to have over 100 pre-scheduled appointments with buyers from North America, China, Japan, Korea, Philippines, Russia, and other source markets. In addition, GVB will also have an opportunity to meet over 100 domestic and international press. Issue: Board approval needed for travel.

3 2 Supplemental Information on IMEX America for Board motion: IMEX America was approved in FY2016 North America Marketing Plan and Budget and a part of our FY2016 SMART Goals. IMEX is the largest meetings industry trade show in the U.S. bringing together suppliers and buyers from around the world, as well as offering inspiring education, career development opportunities and networking events, and attending will support our future objectives in building the MICE market segment for Guam. IMEX America is an appointment-led, business focused trade show that will give GVB Marketing personnel the opportunity to meet with and source buyers who are planning upcoming meetings and events in a productive and efficient environment. The appointment scheduling is based on buyers making the appointments with the sellers. GVB Marketing as a seller can then respond to their request and secure the appointment. So far we have 7 very good appointments. We are also reaching out to buyers for appointments. We believe more buyers would schedule For the seven (7) appointments we have, they are from: Team Lead of American Express Meetings & Events (U.S.) Incentive travel agency; interested in the Asia Pacific region Planner from IACDE (international association of clothing designers) (U.S.) Association/Government Organization; interested in the Asia Pacific region Global VP from ConferenceDirect (U.S.) Incentive travel agency; interested in the Asia Pacific region East Shanghai International Travel Service Co., Ltd. (China) Incentive travel agency; handles groups of 1,000 15,000 pax Experient (U.S.) Incentive travel agency; interested in developing new relationships Shanghai Huaxia International Travel Service Co. Ltd. (China) Incentive travel agency; interested in Asia Pacific region BCD Meetings & Events (Australia) Incentive travel agency; interested in developing new relationships; interested in Asia Pacific region We have reached out to IMEX registered buyers and requested meetings with each of them. We have also forwarded the buyers company names to our overseas marketing rep offices and requested them to contact the buyers in their markets and request them to meet with GVB at IMEX. We want to be more aggressive in contacting those buyers from the Asia Pacific region but are afraid to secure meetings with them should GVB Marketing not obtain approval from the Board to participate in IMEX GVB s Marketing wants to reach those MICE buyers from our Asia Pacific region but we also believe we can attract the MICE buyers from the US whose US business clients may have offices in Asia. GVB Marketing will present Guam as an ideal location and discuss our visitor inventory offerings for these companies to consider scheduling and planning their meetings and incentive trips. With all the key players from the meetings industry attending the show, the exceptional networking at this event will allow GVB Marketing to not only develop relationships, but also foster new and important connections with other industry colleagues who specialize in MICE. IMEX has scheduled numerous creativity and engagement workshops that showcase a variety of tools and techniques, providing planners with immediately useable ideas to implement in meetings. All show floor education during IMEX, has a dedicated creative learning track with impactful sessions

4 3 designed to booth engagement and create a memorable delegate experience. Here are some of the workshop topics/titles: o Certified Incentive Specialist o Deep Dive: LinkedIn MBA (Meetings and Business Accelerator) School o Selling to the incentive market storytelling, a sales pro s most powerful tool o Cybersecurity top 10 things you need to know now o Meeting e-xpectations exploring the future of virtual education o The global exhibition industry: trends worth watching o Prove it or lose it ROI metrics that matter most to the c-suite o Engage Me! Using mobile and its data to improve events Motion to ratify Executive Committee s approval to authorize the General Manager as Chief Procurement Officer to enter into negotiation and contract with the highest rated and most qualified Offeror for GVB RFP Holiday Project Background: The Holiday Illumination Project is a month long attraction to enhance the festive Christmas season. The objective of the Holiday Illumination Christmas on Guam is twofold: (1) to leverage the heritage of Chamorro culture and traditions with updated and sophisticated images of Christmas on Guam today and (2) to reinforce a sense of pride about Guam as our home and a desirable visitor destination Issue: Board approval required Guam Economic Development Authority (GEDA) China Trade Mission Motion to ratify Executive Committee s approval for travel for the Governor of Guam, GVB General Manager, and GVB Chairman to attend the Guam Economic Development Authority (GEDA) China Trade Mission in Shanghai, China from October 13-16, Cost is approximately $11,648.80; funding source to be identified by GVB management. Airfare: October 13-17, 2015: $2,000 x 3 pax $6, Per Diem: Governor Shanghai Lodging: $259 x 4 Nights + 30% $1, Shanghai M&IE: $143 x 5 Days + 30% $ General Manager Shanghai Lodging: $259 x 3 Nights + 25% $ Shanghai M&IE: $143 x 4 Days + 25% $ GVB Chairman Shanghai Lodging: $259 x 3 Nights + 25% $ Shanghai M&IE: $143 x 4 Days + 25% $ Total $11, Background: The purpose for this overseas trade mission, led by GEDA, is to build trade relations, expand Guam s tourism base, and create new economic activity for our island. The trade mission will provide opportunity to promote Guam as a strong investment destination and showcase our island s tourism and economic development potential. Focus will be the following: Establish the sister city relations with Shanghai Pudong Government Meet with potential business investors from Shanghai Pudong and Nanjing City Meet with travel related companies to start charter flights from Shanghai, Hangzhou, and Nanjing

5 4 Meet with businesses that are interested in airport operations on Guam Issue: Board approval needed for all travel. *NOTE: GM Denight will no longer be attending. B. ADMINISTRATION & GOV T RELATIONS GVB Board Resolution Item 1 Motion to Approve GVB Board Resolution Relative to the Concerns expressed by GVB and its Membership regarding Guam s Policy Makers use of TAF Funds for Non- Tourism Related Purposes. Issue: Board Approval Required. TAF appropriations from FY2009 through FY2016 Item 2 GVB FY2016 Budget Item 3 Motion to approve GVB's FY2016 Budget in the amount of $22,279,191 as presented by Management. Issue: Board Approval Needed Cultural & Sports Ambassador Program Rules & Regulations Item 4 Motion to approve submission of the Cultural & Sports Ambassador Program Rules & Regulations to the Guam Legislature pursuant to Public Law Background: Pursuant to Section 9403 of Public Law 33-10, Subsections 9105(d) and (e) of Chapter 9, Title 12, Guam Code Annotated, the Administrative Adjudication Act, the Guam Visitors Bureau has developed certain rules and regulations related to the Cultural and Sports Ambassadors Fund necessary to implement the Cultural and Sports Ambassador Program. It has been duly heard by GVB at a Public Hearing held on July 22, Issue: Board Approval Required Imagine Guam Sponsorship Motion to approve sponsorship in the amount of $20,000 to the Imagine Guam Committee under the Guam Economic Development Authority for the development of a Guam Strategic Vision. (Account to be determined by Management).

6 5 Background: At GVB s Board of Directors regular meeting held on August 13, 2015, Imagine Guam Steering Committee Chairman presented Governor Calvo s initiative for the development of strategic vision for Guam that encompasses all aspects of society. From economic development to infrastructure planning and healthcare, the Imagine Guam team seeks to overlay all GovGuam strategic plans to include Tourism 2020 to see how proposed actions relate to each other, have gaps and are redundant. Bond Rating Motion Motion for board approval travel for the GVB General Manager to accompany Governor Calvo to meet with bond rating companies in San Francisco from October 23-28, 2015 to conduct a Guam Tourism presentation for S&P. Cost is approximately $5, from FY2016 North America Budget, Account US-SMD023. Budget breakdown: Airfare: One Roundtrip GUM-SF-GUM $1, Per Diem: Lodging $ x 5 days $3, M&IE - $74/day x 25% = $92.50/day x 6 days $ TOTAL $5, Background: GEDA and the Governor's Office are coordinating travel to San Francisco, CA to meet with bond rating company S&P, Bond Underwriters and Guam Bond Counsel Orrick to discuss the current Government of Guam Bonds. This would include the GovGuam General Obligation Bond, HOT Bond and the Section 30 credit. Tourism is Guam s largest economic contributor and the principal subject of discussion when the Governor s Fiscal Team makes a presentation to S&P. Governor Calvo requests the GVB GM to present the tourism section and answer questions about the industry. Issue: Board approval for travel required. C. VISITOR SAFETY & SATISFACTION D. CULTURE & HERITAGE MODE TOUR MINI EXHIBITION Motion to approve travel for one CHC staff and one Miss Guam to attend the Mode Tour Mini Exhibition for the promotion of the MODE TOUR Travel Mart in Seoul, Korea from October 23 October 25, (Cost is approximately $4, from FY2016 Budget Acct# DM-CPO002). Airfare: $800 x 2 pax $1, Lodging: $ x 2 pax x 3 nights $1, M&IE: $ x 2 pax x 3 days $ Prof Fees: Miss Guam $100 x 1 pax x 3 days $ Total: $4, Background: The Guam Visitors Bureau (GVB) plans to participate in the pre-promotion for MODE TOUR Travel Mart. MODE TOUR extended a complimentary booth space for GVB and in return GVB Korea inquired with GVB Head Office to see if a Miss Guam would be able to join the booth for photoops during the 3-day promotion. The promotion will be held at the Pangyo Hyundai Mall in Seoul from October 23-25, 2015 and is estimated to expect over 7,500 visitors

7 6 E. DESTINATION MANAGEMENT F. GREATER CHINA Exhibit C Committee minutes dated October 2, 2015 Beijing Business Development Meetings and Guam Sales Training Seminar in Henan Province, China Motion to approve travel for GVB Marketing Manager and one (1) GVB Marketing Officer to conduct business development meetings with travel trade partners in Beijing and a Guam Sales Training Seminar in Zhengzhou City, Henan Province, China from October 23-27, Cost is approximately $5,936.00, to be taken from China Sales Market Development Account No. CI-SMD023. Airfare: Round-trip Airfare: $1,200 x 2 pax $2, Per Diem: Beijing Lodging: $258 x 1 night x 2 pax $ Beijing M&IE: $119 x 1 day x 2 pax $ Zhengzhou Lodging: $145 x 3 Nights x 2 pax $ Zhengzhou M&IE: $114 x 4 Days x 2 pax $ Misc. Expenses: Business communication costs & excess baggage fees $1, Total $5, Background: In FY2015, Guam experienced tremendous positive growth in China visitor arrivals. Marketing and sales remains focused in the first tier cities of Beijing, Shanghai, and Guangzhou. Therefore, it is crucial to develop and strengthen relationships with our partners from these cities. GVB will meet with potential partners to develop more sales and marketing programs in support of direct service to Guam in the coming year, maximizing sales during the peak China outbound travel periods such as Chinese New Year and Summer period, as well as attracting visitors during historically low arrival periods for Guam. Henan Dahe International Travel Services Co., Ltd has committed to CNY 2016 Charter Flights with Dynamic Airways from Zhengzhou City in the Henan, China province. In an effort to support these incoming charters the Bureau will be conducting a Guam Sales Training Seminar for the travel trade as well as a consumer event in Henan, China. The sales seminar is designed to: (1) strengthen Guam s visibility and awareness among travel trade partners, (2) educate the travel trade on Guam products and upcoming campaigns such as Shop Guam Festival and Visit Guam 2016, and (3) enhance the networking and business ties between Guam and the travel trade in Henan, China. The seminar will take place in the capital of Henan Province, Zhengzhou City, which is located in eastcentral China and serves as the major transportation hub for central China and the political, economic, technological, and educational center of the Henan province. Zhengzhou city has a population of 3,677,000 with a gross national income per capita of 6,560 USD. Issue: Board approval needed for all travel. G. JAPAN Exhibit D Committee minutes dated September 8, 2015

8 7 JGTC Meeting Motion to approve travel for the General Manager or his representative, JMC Chairman and one Marketing staff to attend the Japan Guam Tourism Council Kanto meeting and attend ceremony between Toi Two Lovers Point and Kashiwazaki Two Lovers Point to commemorate their sister city program. Travelling date from October 28~29, (Estimated cost of travel: $4,449.00; account JA-SMD008 Cost Breakdown: Airfare $1, x 3 pax $3, JMC Chairman Tokyo Per Diem - Meals & Incidentals $ x 1 day $ Niigata Per Diem Lodging $93.75 x 2 nights $ Niigata Per Diem Meals & Incidentals $ x 1 day $ General Manager Tokyo Per Diem - Meals & Incidentals $ x 1 day $ Niigata Per Diem Lodging $93.75 x 2 nights $ Niigata Per Diem Meals & Incidentals $ x 1 day $ Marketing Officer Tokyo Per Diem - Meals & Incidentals $ x 1 day $ Niigata Per Diem Lodging $75.00 x 2 nights $ Niigata Per Diem Meals & Incidentals $91.00 x 1 day $91.00 $4, Background: JGTC Kanto meeting will be held on October 28, The JGTC meeting are an important component of GVB s trade outreach across Japan and the Kanto meetings being the key outbound region for Guam. Kashiwazaki Tourism Office has invited GVB to participate in the sister city program ceremony between Toi Two Lovers Point and Kashiwazaki Two Lovers point on October 29, Kashiwazaki and Toi City appreciates GVB s presence to continue strengthening our ties. Earlier this year, GVB participated at Two Lovers Point 25 th Anniversary in Izu City, Japan. Issue: Board approval required for all travel. Marketing Blitz #1 Motion to approve travel for 11 pax to attend the Marketing Blitz #1 in Nagoya, Sendai and Sapporo from November 10~13, (Estimated cost of travel $27, from Account# JA-GAMAL001 $7, and Account# DM-CPO001 $19,970.00)

9 8 Per Diem Rate No. of Days Total Date of travel Marketing JMC Chair Milton Morinaga (Nagoya) $ $ Sendai $ $ Sapporo $ $ GM Nathan Denight (Nagoya) $ $ Sendai $ $ Sapporo $ $ Nadine Leon Guerrero (Nagoya) $ $ Sendai $ $ Sapporo $ $ Airfare (3 pax x $1, est. including domestic transportation) $4, regular per diem rate (Nagoya) $ regular per diem rate (Sendai) $ regular per diem rate (Sapporo) $ MARKETING BUDGET: $7, CHaCO Per Diem Rate No. of Days Dee Hernandez (Nagoya) $ $ ~13 Sendai $ $ Sapporo $ $ Miss Guam (Nagoya) $ $ Sendai $ $ Sapporo $ $ Musician (Nagoya) $ $ Sendai $ $ Sapporo $ $ Cultural Entertainers (Nagoya) $ $ Sendai $ $ Sapporo $ $ Airfare (8 pax x $1, est. including domestic transportation) $12, regular per diem rate (Nagoya) $ regular per diem rate (Sendai) $ regular per diem rate (Sapporo) $ $18,320.00

10 9 Professional Fees: 2 Miss Guam (3 days) $ $ Musician (3 days) $ $ Cultural Entertainers (3 days) $ $ $1, CHACO BUDGET: $19, CHACO + MARKETING TOTAL: $27, Background: Part of FY2016 Japan Marketing Action Plan to aggressively approach to major wholesalers in Tokyo, Osaka, Nagoya and Fukuoka. The Marketing Blitz will comprise of Guam Seminar and Guam Night Reception and will be inviting about 100~250 travel agent sales person. During the Blitz, GVB will reinforce the OOG messaging with Toshi-chan Campaign, Visit Guam 2016, FESTPAC and Shop Guam Festival. GVB will also invite the membership and industry partners (airlines, hotels, optional tour companies, wedding companies, etc.) for their participation in the seminar and networking directly with the travel agents. The Blitz will support the much needed support in these regional cities with direct flights to Guam. Media will also be invited to gain PR exposure for Guam Issue: Board approval required for all travel. Marketing Blitz #2 Motion to approve travel for 11 pax to attend the Marketing Blitz #2 in Fukuoka and Osaka from November 18~20, (Estimated cost of travel $19, from Account# JA-GAMAL001 $5, and Account# DM-CPO001 $14,508.00) Background: Part of FY2016 Japan Marketing Action Plan to aggressively approach to major wholesalers in Tokyo, Osaka, Nagoya and Fukuoka. The Marketing Blitz will comprise of Guam Seminar and Guam Night Reception and will be inviting about 100 ~250 travel agent sales person. During the Blitz, GVB will reinforce the OOG messaging with Toshi-chan Campaign, Visit Guam 2016, FESTPAC and Shop Guam Festival. GVB will also invite the membership and industry partners (airlines, hotels, optional tour companies, wedding companies, etc.) for their participation in the seminar and networking directly with the travel agents. The Blitz will support the much needed support in these regional cities with direct flights to Guam. Media will also be invited to gain PR exposure for Guam. Issue: Board approval required for all travel.

11 10 Per Diem Rate No. of Days Total Date of travel Marketing JMC Chair Milton Morinaga (Fukuoka) $ $ ~20 Osaka $ $ GM Nathan Denight (Fukuoka) $ $ Osaka $ $ Nadine Leon Guerrero (Fukuoka) $ $ Osaka $ $ Airfare (3 pax x $1, est. including domestic transportation) $3, regular per diem rate (Fukuoka) $ regular per diem rate (Osaka) $ MARKETING BUDGET: $5, CHaCO Per Diem Rate No. of Days Dee Hernandez (Fukuoka) $ $ ~20 Osaka $ $ Miss Guam (Fukuoka) $ $ Osaka $ $ Musician (Fukuoka) $ $ Osaka $ $ Cultural Entertainers (Fukuoka) $ $ Osaka $ $ Airfare (8 pax x $1, est. including domestic transportation) $8, regular per diem rate (Fukuoka) $ regular per diem rate (Osaka) $ $13, Professional Fees: 2 Miss Guam (2 days) $ $ Musician (2 days) $ $ Cultural Entertainers (2 days) $ $ $1, CHACO BUDGET: $14,508.00

12 11 CHACO + MARKETING TOTAL: $19, H. KOREA MODE TOUR TRAVEL MART 2015 Motion to approve travel for KMC Chairman or his designee, one marketing staff, one CHC staff, one Miss Guam, two musicians and four cultural dancers to attend the Mode Tour Travel Mart in Seoul, Korea from October 29 - November 1, (Cost is approximately $6, from FY2016 Korea Budget Acct# KO-SMD023 and $24,080 from Acct# DM-CPO002). Background: The Guam Visitors Bureau (GVB) plans to attend the 2 nd Annual MODE TOUR Travel Mart that will be held at the SETEC Gangnam Exhibition Hall in Seoul, Korea from October 29 November 01, MODE TOUR is one of Korea s top travel agencies. Last year, the Travel Mart welcomed 292 institutes including overseas embassies, tourism boards, local governments, airlines, hotels and resorts, and insurance companies. A total of 65,000 visitors left their footprints and a total of 8 billion sales were generated as a result of the inaugural event. This year s Travel Mart is expected to welcome 80,000 visitors consisting of travel trade and consumers during the 4-day event. The MODE TOUR Travel Mart provides an opportune time to promote Guam s offerings, upcoming events, and highlight our island as a unique destination. GVB plans to have meetings while in Seoul for the Travel Mart. GVB is scheduling appointments with MODE TOUR leaders to discuss continued support, as well as meet with key travel agents. GVB will also conduct courtesy visits with Korean Air, Jeju Air, Jin Air, and T way to discuss updates within the market. Airfare: $800 x 2 pax $1, BOD Lodging/MI&E: $365/day x 6 days x 1pax + 25% $2, Staff Lodging/MI&E: $365/day x 6 days x 1pax $2, Marketing Total: $6, Culture: Airfare: $800 x 9 pax $6, Lodging: $ x 9 pax x 5 nights $9, M&IE: $ x 9 pax x 6 days $6, Prof Fees: Musicians $100 x 2 pax x 4 days $ Dancers $50 x 4 pax x 4 days $ Miss Guam $100 x 1 pax x 4 days $ CHC Total: $24, Issue: Board approval needed for travel I. MEMBERSHIP & COMMUNITY OUTREACH

13 12 J. NORTH AMERICA & PACIFIC MARKETS ITB Asia 2015 Motion Motion to approve travel for two GVB Marketing Staff to attend the ITB Asia 2015 in Singapore from October 21-23, Cost is approximately $6, and will come from FY 2016 Pacific Budget Acct. No. PA-TTC077. Travel Expenses: Airfare $ x 2 pax $1, Per Diem Lodging $ x 6 days x 2 pax $3, Per Diem M&IE $ x 6 days x 2 pax $1, TOTAL EXPENSE: $6, Background: The Guam Visitors Bureau (GVB) is planning attend the ITB Asia ITB Asia is the premier meeting place for the travel trade industry and a forum for establishing high-quality customer contacts and conducting businesses. It is the event where international exhibitors of all sectors within the travel-value chain commerce and Asia Pacific s leading travel companies and emerging small and medium-sized enterprises meet with top international buyers from MICE, Leisure and Corporate Travel markets. ITB Asia 2014 received close to 10,000 attendees from 108 countries. Approximately 750 exhibitors from 76 countries shared their products. ITB Asia is set to be bigger and GVB looks forward to a successful participation. While at ITB Asia, GVB will be meeting with United Singapore and their key agents. With the recently launched 2016 Guam Events Calendar and Only On Guam campaign, GVB plans to make a hard push to promote Guam. GVB also will be meeting with the PATA Singapore Chapter to discuss Guam s hosting of the 2016 PATA Annual Summit. Issue: Board approval needed for all travel. DEMA 2015 Motion Item 5 Motion to approve travel of two (2) GVB marketing staff to attend the DEMA Show 2015 to be held November 4-7, 2015 in Orlando, Florida. Travel cost approximately $8, from FY 2016 North America Budget Acct. #US-SMD023. Travel Expenses: Airfare $2, x 2 pax $4, Per Diem Lodging + M&IE $2, ($186/day x 7 days x 2 pax) Miscellaneous Expenses: (i.e. excess $1, baggage, booth, freight cost) TOTAL EXPENSES: $8,104.00

14 13 Background: Guam Visitors Bureau (GVB) is a member of Diving Equipment & Marketing Association (DEMA) and plans attend the DEMA Show is the world's only international trade-only event for the dive industry. GVB will have the opportunity to connect face-to-face and network with more than 9,300 credentialed experts from every aspect of the diving, action watersports and travel professions. This event is attended by travel sellers throughout the world and is the best event for showing the Guam destination to travel agents that organize dive group trips. As the gateway to Micronesia and America in Asia, Guam is strategically positioned to accommodate the dive enthusiasts as a quick layover, looking for a safe US destination or as a destination with many adventures and shopping options. Scuba diving and diver travelers are known as affluent travelers contributing to the overall tourism industry on Guam. An average two-tank boat dive on Guam is around $175 per person with the typical diver purchasing at least two dive tours during a visit. At least 67,000 divers frequented Guam in 2014 to equate to millions of dollars in gross revenue for the island. We are also pleased to announce that the Guam Tropical Dive Station (GTDS) was awarded the most dives PADI Award for certifying more than 35,000 divers over 12 months. While participating at the DEMA Show 2015 we look forward to sharing the 2016 Events Calendar, and push FESTPAC 2016 to give the divers more time to plan out their next dive trip and choose destination Guam. The Guam Visitors Bureau will be joining the Micronesian Pavilion together with Palau Visitors Authority and other Micronesia partners to create a strong regional presence supported by United Airlines and to conduct a Micronesia Seminar to familiarize attendees on the region, diving and other optional activities. Action: Board approval required for travel. K. RESEARCH L. RUSSIA & NEW MARKETS M. SPORTS & EVENTS 96 th Korea National Sports Festival Motion to approve travel for GVB Community Development Officer, (1) Miss Guam to travel to Kangwondo, South Korea to participate in the 96th Korea National Sports Festival from October 16-19, Account AS-ESP001 (Estimated cost of travel: $4,350.00) Background: The Korea Sports Council of Guam (KSCOG) will be sending a delegation of (80) Korean athletes from Guam to participate in the 96 th Korean National Sports Festival in Kangwondo, South Korea from October 15-19, The festival features over 80,000 Korean National sports athletes from over 50 countries worldwide competing in a variety of sporting events. This year, the KSCOG has requested GVB s support in attending the opening ceremonies as represented last year to once again assist in promoting Guam as part of the activities scheduled for the festival. During the festival, the GVB delegation and KSCOG will once take advantage of the event media coverage during the opening ceremonies and will take part in charitable events/activities such as feeding the hungry and special appearances by Miss Guam for the elderly during the 4-day trip. Notably, during last years event, the Guam Delegation lead Guam's Korean Nationals during the opening ceremonies in which Guam cultural team performed a quick cultural performance in front of South Korea President Ms. Park Geun-Hye. The performance and cultural gesture was televised and viewed by an estimated 1.2 million viewers via KBS Sports Network. This year, GVB Korea would like to include Press releases incountry showcasing Guam's support and charitable efforts in Korea along side with the KSCOG. Opportunities to develop Sports exchange programs for Guam and Korean utilizing existing sporting events will be promoted to the traveling affluent Korean nationals at the 96th Festival.

15 14 Airfare: (1) Community Development Officer, (1) Miss Guam, Per Diem (Meals & Incidental Expenses only) GVB Staff: $365 x 4= $1460 Miss Guam: $365 x 4= $1460 $ x 2 pax $1, $ x 4days =$1,020 =$1,020 Miscellaneous: Bus Fare / Transportation cost $30.00 x 2 pax $60.00 TOTAL $4, Issue: Board approval required for all travel. VII) OLD BUSINESS VIII) NEW BUSINESS IX) EXECUTIVE SESSION X) ANNOUNCEMENTS Upcoming Board Meetings: o o Thursday, October 22, 2015 at 4:00pm, GVB Main Conference Room. Thursday, November 12, 2015 at 4:00pm, GVB Main Conference Room. Announcements: XI) ADJOURNMENT

16 15 Action Item: 1. Management to finalize signage/touting/abandoned building/hand-billing legislation and submit by August 1, Tumon Masterplan Task Force o Management to incorporate into a capital request for funding possibly via a bond. o Submit a draft plan by August 1, Management to request PATA to schedule a task force in conjunction with the PATA Conference. Schedule by September 1, Community Outreach to develop a plan for increasing public awareness of GVB s actions and contributions to the community by August 1, Management to present to the Board at the next meeting: o Total Festpac Budget o Sources of funding already approved and still needed o How the accounts will be handled and administrated 8. Management to look into how GVB can leverage and support the next GFA event from a promotional standpoint 9. Management to follow up with Lt. Carbullido (GPD) on incidence report. 10. Think-tank task force meeting to discuss CBP issue 11. Management to set up seminar with Korean Association of Guam regarding Guest House legalities 12. Management to provide Board with recommendation regarding testimony on Bill Due at end of year - Management to provide an end of year Sports & Events recap: o Money spent o Arrivals o Return on Investment

17 EXHIBIT A BOARD OF DIRECTORS REGULAR MEETING Thursday, September 10, :00 p.m. Guam Visitors Bureau- Main Conference Room BOARD of DIRECTORS PRESENT: Chairman Mark Baldyga Director Katarina Sgro Director Norio Nakajima Director Shelly Calvo Director Hong Soon Im Director Samuel Shinohara Director Milton Morinaga Director Clifford Guzman Vice Chairman Bruce Kloppenburg Director Eduardo Calvo BOARD of DIRECTORS ABSENT: Director Theresa Arriola Off-island Director Robert Hofmann - BOARD OF DIRECTORS TELEPHONICALLY: Director Bart Jackson GVB MANAGEMENT & STAFF PRESENT: Acting General Manager Ana Cid Haven Torres Meriza Peredo Mark Manglona Joshua Tyquinengco Antonio Muna Jr. Regina Nedlic June Sugawara Brian Borja Doris Ada Nadine Leon Guerrero Russell Ocampo GVB MANAGEMENT & STAFF TELEPHONICALLY: Pilar Laguana GUESTS: Bernice Rivera Senator Tina Muna Barnes Office I. CALL TO ORDER Chairman Baldyga called the meeting of the board to order at 4:04 p.m. II. MINUTES OF THE PREVIOUS MEETING Exhibit A Chairman Baldyga made a motion to approve the minutes of the previous Board of Directors meeting dated August 27, Motion Unanimously Approved. (Subject to minor revisions) III. CHAIRMAN S REPORT

18 Regular Board Meeting September 10, 2015 (2/20) FY16 GVB Budget o o IV. Chairman Baldyga reported a productive meeting with Senator Tina Muna Barnes regarding GVB s FY16 budget. Chairman Baldyga recommended the Board hold a working session for budget discussion. GENERAL MANAGER S REPORT

19 Regular Board Meeting September 10, 2015 (3/20) V. TREASURER S REPORT Exhibit B VI. REPORT OF THE BOARD COMMITTEES A. EXECUTIVE COMMITTEE B. SPORTS & EVENTS Chairman Baldyga reported to the Board his phone call with Andrew Wood from the Asian PGA. Mr. Wood is scheduled to present at the next Board meeting a sponsorship proposal for Guam to host a PGA event. C. VISITOR SAFETY & SATISFACTION Director Im said they are still working on the live entertainment project at the Airport.

20 Regular Board Meeting September 10, 2015 (4/20) D. ADMINISTRATION & GOV T RELATIONS San Vitores Flooding Mitigation Resolution Director Kloppenburg made a motion, seconded by Director Guzman to approve GVB Board Resolution relative to the San Vitores flooding mitigation project as delineated in Guam Public Law and funded by part of the proceeds of the 2011 Hotel Occupancy Tax (HOT) Bonds. Motion tabled. Background: The Guam Economic Development Authority, the agency tasked with carrying out the projects mandated by P.L and funded by the 2011 Hotel Occupancy Tax (HOT) Bonds, has requested GVB s support through a Board Resolution for the San Vitores Flooding Mitigation Project. GEDA seeks to advance the project through a gravity bay outfall to be located near the Frank E. Smith. Issue: Board Approval Required Discussion/Comments: The motion was tabled pending an updated Flood Mitigation presentation to the Board from GEDA. TOURISM DESTINATION MARKETING REPRESENTATION SERVICES IN TAIWAN Director Kloppenburg made a motion, seconded by Director E. Calvo to approve authorization of the General Manager as Chief Procurement Officer to enter into negotiations with the highest rated and most qualified Offeror for GVB RFP : Tourism Destination Marketing Representation Services in Taiwan, and if successful, enter into contract. Motion approved. Background: The Guam Visitors Bureau (GVB) requested proposals (RFP) for professional and experienced companies to provide GVB with Tourism Destination Marketing Representation Services in Taiwan. The agency shall act as the GVB tourism destination marketing representative and shall perform general duties as required including, but not limited to, representation in targeted cities where Guam is being promoted to outbound travelers who fit the demographics Guam is seeking to attract in Taiwan. Issue: Board approval required. SOCIAL MEDIA MONITORING TECHNOLOGY Director Kloppenburg made a motion, seconded by Director Shinohara to approve authorization of the General Manager as Chief Procurement Officer to enter into negotiations with the highest rated and most qualified Offeror for GVB RFP : Social Media Monitoring Technology, and if successful, enter into contract. Motion approved. Background: The Guam Visitors Bureau (GVB) requested proposals (RFP) for a qualified professional and established firm to develop and combine technology, processes and trained professionals to deliver accurate and relevant data mining and analysis to aid in listening to digital conversations across countries in multiple languages. The ability to monitor online conversations from social media sites in the following countries: Japan, Korea, Taiwan, Hong Kong, Mainland China, Philippines, Russia and the U.S.A. in the following native languages: Japanese, Korean, Traditional Chinese, Simplified Chinese, Russian and English.

21 Regular Board Meeting September 10, 2015 (5/20) Issue: Board approval required. E. CULTURE & HERITAGE F. DESTINATION MANAGEMENT Director Guzman reported they are working with the IBTF on an anti-graffiti campaign. He also reported they are actively working on the TDIP and look forward to Chairman Baldyga attending their next meeting. G. GREATER CHINA Exhibit C Committee minutes dated September 4, 2015 Taiwan Taipei International Travel Fair (ITF) and Trade Workshop Director Kloppenburg made a motion, seconded by Director E. Calvo to approve travel for Governor or Lieutenant Governor, Governor Staff or Lieutenant Governor Staff, GVB General Manager, GVB Marketing Manager, two (2) GVB Marketing Officers, one (1) CHO, one (1) Miss Guam, two (2) musicians and four (4) cultural dancers, to attend the Destination Guam Travel Trade Workshop on November 5, 2015 and Taipei International Travel Fair from November 6-9, Cost is approximately $15, from TA-TTC031 and $24, from DM-CPO003 pending approved funding from FY2016 Budget. Motion approved. Marketing Department Airfare: November 4-8, 2015: $1,200 x 3 pax $3, November 4-7, 2015; $1,500 x 3 pax $4, Sub-Total: $8, Per Diem: Governor or Lieutenant Governor Taipei Lodging: $169 x 3 Nights + 30% $ Taipei M&IE: $102 x 3 Days + 30% $ Governor Staff or Lieutenant Governor Staff Taipei Lodging: $169 x 3 Nights $ Taipei M&IE: $102 x 3 Days $ GVB General Manager Taipei Lodging: $169 x 3 Nights + 25% $ Taipei M&IE: $102 x 3 Days +25% $ GVB Marketing Manager & (2) Marketing Officers Taipei Lodging - $169 x 4 Nights x 3 pax $2, Taipei M&IE - $102 x 4 Days x 3 pax $1, Sub-Total: $6, Miscellaneous: (Excess baggage, communications, meeting expenses, etc.) $1, Total $15,238.15

22 Regular Board Meeting September 10, 2015 (6/20) Cultural Heritage Department Airfare: November 4-9, 2015: $1,200 x 8 pax $9, Per Diem: Taipei Lodging: $169 x 6 nights x 8 pax $8, Taipei M&IE: $102 x 6 days x 8 pax $4, Prof Fee: Chamorro Musicians: $100 x 4 days x 2 pax $ Chamorro Dancers: $50 x 4 days x 4 pax $ Miss Guam: $100 x 4 days x 1 pax $ Total $24, Background: Taipei s International Travel Fair (ITF) is one of the most popular travel fairs in the Asia Pacific Region combining an exhibition and sales event in Taiwan. The 2014 ITF hosted 950 exhibitors, 1,450 booths, and groups from more than 60 countries and regions. Last year s four day event attracted over 335,000 visitors and had exposure to more than 4,000 domestic and international media reporters. In an effort to promote the Shop Guam Festival 2016, FESTPAC 2016, and other signature Guam events, GVB will be hosting a Destination Guam Travel Trade Workshop on Thursday, November 5, 2015 to familiarize current and new partners on Guam products and promotions scheduled for In addition, the Bureau will be inviting its members to participate in both ITF as well as the workshop. A portion of the trade workshop will be dedicated to individual talks about member s products and/or services to participating agents and will provide a great opportunity for partners to share information about their company. Recently, Taiwan visitor arrivals have been suffering due to fierce competition in the market with better airfare and convenient flight schedules to other regional destinations. It is more affordable to visit locations such as Japan and other South East Asian destinations when compared to Guam. In August, China Airlines announced four new daytime flights starting October 25, With this announcement, this is the most opportune time to promote Guam to the Taiwanese visitor capitalizing on the four daytime flights available through China Airlines. Key participation from Guam s tourism leaders is crucial to this overseas promotion. GVB has worked closely with China Airlines for many years requesting to provide daytime flights. Now that a motion has been made in securing these flights, GVB s sales and marketing programs are needed to make this convenient flight schedule a success. Participation at ITF and the hosting of a Travel Trade Workshop will demonstrate GVB s continued commitment to the Taiwan market and showcase the importance of the Taiwanese travelers to Guam s tourism market mix. Guam s promotional presence will provide trade education and consumer awareness leading to increased pax arrivals in the future. Issue: Board approval needed for all travel. H. JAPAN Guam Trip for MOTION Director Morinaga made a motion, seconded by Director Shinohara to approve travel for two Japan staff to attend a seminar by JTB Soken, Mr. Kurosu from October 01 to October 03, (Estimated cost $2,707.00; Account#SMD045) Motion approved.

23 Regular Board Meeting September 10, 2015 (7/20) Travel Expenses: Airfare: $ x 2pax $ Hotel: $175 x 2pax x 2nights $ Car Rental: $65.00 x 3 days $ R/T Transportation to airport: $ Guam Per Diem: $62.50 x 2 nights $ Total: $2, Background: The Japan Market seminar will be held in Guam by JTB Soken on October 02, The seminar will focus on Japanese outbound market in conjunction with the destination of Guam. The staff will be there to assist Mr. Kurosu with the seminar for GVB members and stakeholders. Issue: Board approval required for all travel I. KOREA Director Jackson said they just completed a roadshow in Daegu where they made a pitch to the Daegu market the 3 rd largest market in Korea. They hope to have direct flights to Daegu in the very near future. J. MEMBERSHIP & COMMUNITY OUTREACH Director Guzman noted the next Membership Meeting scheduled for September 17 would focus on the budget and also the Korean Market. With the help of social media, Community Outreach is moving along thanks to the staff at GVB. They are doing a great job showcasing how tourism benefits Guam. K. NORTH AMERICA & PACIFIC MARKETS Exhibit D Committee minutes dated September 2, 2015 IMEX America 2015 Director S. Calvo made a motion, seconded by Director Guzman to approve travel for the Marketing Manager and Marketing staff to attend the IMEX America at the Sands Expo in Las Vegas, Nevada from October 13-15, Cost is approximately $6, from account US-SMD023. Chairman Baldyga made a motion, seconded by Director Kloppenburg to withdraw the motion. Motion withdrawn. Airfare: $1,900 x 2 pax $3, Per Diem Lodging + M&IE: $ x 6 days x 2 pax $2, Misc. Expenses $ Total $6,604.00

24 Regular Board Meeting September 10, 2015 (8/20) Background: With the new Dusit Thani Guam that opened their doors this past summer, Guam now has the facilities to hold MICE groups with Dusit Thani s convention hall that holds up to 1,000pax. The Guam Visitors Bureau (GVB) plans to attend the IMEX America that will be held at the Sands Expo in Las Vegas, Nevada from October 13-15, This is an opportune time to attract more MICE participants from the U.S. and source markets. This will be the first time GVB will be attending IMEX America as an exhibitor. IMEX is a worldwide exhibition for incentive travel, meetings and events that is committed to providing outstanding business opportunities for exhibitors and buyers. IMEX has two exhibitions a year, in Frankfurt, Germany and in America. IMEX America is Americas largest MICE Expo with over 10,300 participants, 2,900 buyers from 54 countries in 2014; an increase of 8% over GVB will have the opportunity to meet qualified buyers from North America and around the world within the 3-day event. This year, GVB expects to have over 100 pre-scheduled appointments with MICE planners from North America, China, Japan, Korea, Philippines, Russia and other source markets. In addition, GVB will also have an opportunity to meet over 100 domestic and international media. Issue: Board approval needed. Discussion/Comments: Chairman Baldyga requested marketing return to the Board with a specific and definitive list of whom they would be meeting with. L. RESEARCH M. RUSSIA & NEWMARKETS Director Jackson said as the ruble continues to weaken, he would like to suggest approaching new carriers to discuss Guam as a stopover. VII. OLD BUSINESS VIII. NEW BUSINESS The legislative oversight hearing on the budget was postponed until a later date. Both Chairman Baldyga and GM Denight were off-island at the time. IX. EXECUTIVE SESSION X. ANNOUNCEMENT Upcoming Board Meetings: o o Thursday, September 24, 2015 at 4:00pm, GVB Main Conference Room. Thursday, October 8, 2015 at 4:00pm, GVB Main Conference Room. Announcements:

25 Regular Board Meeting September 10, 2015 (9/20) XI. ADJOURNMENT Chairman Baldyga made a motion, seconded by Director Guzman, to adjourn the meeting. Meeting adjourned at 4:47 p.m. Motion Unanimously Approved. Mrs. Theresa C. Arriola, Secretary of the Board of Directors Board Minutes respectively submitted by Dara Roberto, Executive Secretary

26 Regular Board Meeting September 10, 2015 (10/20) Action Item: 1. Management to finalize signage/touting/abandoned building/hand-billing legislation and submit by August 1, Tumon Masterplan Task Force o Management to incorporate into a capital request for funding possibly via a bond. o Submit a draft plan by August 1, Management to request PATA to schedule a task force in conjunction with the PATA Conference. Schedule by September 1, Community Outreach to develop a plan for increasing public awareness of GVB s actions and contributions to the community by August 1, Management to present to the Board at the next meeting: o Total Festpac Budget o Sources of funding already approved and still needed o How the accounts will be handled and administrated 8. Management to look into how GVB can leverage and support the next GFA event from a promotional standpoint 9. Management to follow up with Lt. Carbullido (GPD) on incidence report. 10. Think-tank task force meeting to discuss CBP issue 11. Management to set up seminar with Korean Association of Guam regarding Guest House legalities 12. Management to provide Board with recommendation regarding testimony on Bill Due at end of year - Management to provide an end of year Sports & Events recap: o Money spent o Arrivals o Return on Investment 14. Management to meet with Director Shinohara and return to the Board with the following: o True working capital needs of the Bureau o Excess unappropriated funds o How to best utilize those funds

27 Regular Board Meeting September 10, 2015 (11/20)

28 CASH, RECEIVABLES, & PAYABLES POSITION FY 2014 & FY 2015 COMPARATIVE REPORT FY 2014 (10/8/2014) Balance FY 2015 (10/8/2015) Balance BANK OF GUAM $7,827, BANK OF GUAM $9,464, FIRST HAWAIIAN BANK - Membership $72, FIRST HAWAIIAN BANK - Membership $74, RESONA BANK $149, RESONA BANK $156, BOG - TAF ACCOUNT $1,428, BOG - TAF ACCOUNT $1,795, BOG - RAINY DAY FUND $1,872, BOG - RAINY DAY FUND - NOTE 1 $2,095, BOG - FESTPAC Trust Account $1,546, BOG - FESTPAC Trust Account $2,739, MORGAN STANLEY - CD ** $2,511, MORGAN STANLEY - CD ** - NOTE 2 $2,515, BOG - 2/12 Memorial Fund $24, TOTAL CASH IN BANKS AS OF 10/8/2015 $18,840, TOTAL CASH IN BANKS AS OF 09/08/14 $15,433, **Morgan Stanley CD Market value as of 8/31/2015 **Morgan Stanley CD Market value as of 07/31/2014 FY 2015 BUDGET P.L $ 23,847, Operations $ 20,115, FY 2014 BUDGET P.L $ 18,262, Destination Development $ 1,085, OPERATIONS TAF Special Projects Capital Improvement Projects $ 1,412, $15,487, $2,000, Pass-thru Appropriations $ 1,235, PASS THRU APPROPRIATIONS - $775, Operations Destination CIP Pass-thru 10/9/2014 $ - $ - $ - $ 150, OPERATIONS TAF Special Projects Pass-thru 11/5/2014 $ 3,274, $ 230, $ 1,100, $ 212, /14/13 $1,161, $ 150, $ 58, /19/2014 $ 1,000, $ - $ 100, $ 5, /15/13 $1,161, $ 150, $ 58, /23/2014 $ - $ - $ - $ 39, /29/13 $ -0- $ -0- $ 7, /13/2015 $ - $ - $ 116, $ 81, /11/13 $1,161, $ 150, $ 63, /20/2015 $ 4,014, $ 230, $ - $ 222, /24/13 $ -0- $ $ 3, /20/2015 $ 3,684, $ 230, $ - $ 217, /10/14 $1,032, $ 150, $ 26, /22/2015 $ 850, $ - $ - $ - 01/21/14 $ -0- $ -0- $ 2, /10/2015 $ 200, $ - $ - $ - 02/11/14 $ 386, $ 150, $ 22, /13/2015 $ 1,508, $ 81, $ - $ - 03/17/14 $1,936, $ 150, $ 96, /12/2015 $ 2,974, $ 230, $ - $ 212, /17/14 $1,290, $ 150, $ 80, /15/2015 $ - $ - $ - $ 185, /09/14 $ 649, $ 150, $ 56, /22/2015 $ 1,800, $ - $ - $ - 06/19/14 $1,161, $ 150, $ 56, /22/2015 $ 210, /04/14 $1,161, $ 150, $ 56, /2/2015 $ 200, $ - $ - $ 300, /12/14 $1,161, $ 150, $ 56, /26/14 $1,050, $ 150, $ -0-09/09/14 $1,161, $ 150, $ 56, /03/14 $425, $ 25, $14,900, $1,950, $ 725, $ 19,716, $ 1,003, $ 1,317, $ 1,627, Total FY 2015 Allotment Received to Date: $22,784, Accounts Receivable FY 2015 $1,063, Total FY 2014 Allotment Received to Date: $17,575, FY 2015 ACCOUNTS PAYABLE as of 9/9/2015 Amount Accounts Receivable FY 2014 $686, Asatsu invoices APR~JUN 2015 Japan Miscellaneous Invoices $763, $51, FY 2014 ACCOUNTS PAYABLE as of 10/8/2014 Amount Guam Miscellaneous Invoices $1,961, Asatsu invoices June 2014/July/Aug/Sept 2014 $2,124, Encumbered Contracts (not yet incurred) $3,660, Japan Miscellaneous Invoices $55, Encumbered Purchase Orders (not yet incurred) $197, Guam Miscellaneous Invoices $1,028, FESTPAC Trust Account $2,739, FY 2011/2012/2013 Pass-thru appropriations $292, Total Payables to Date $9,373, FY 2014 Pass-thru appropriations $8, NOTE 1 Encumbered Contracts (not yet incurred) $2,376, $ 2,095, Rainy Day Fund Encumbered Purchase Orders (not yet incurred) $214, ($1,000,000) Board approved allotment to Japan market for advertising FESTPAC Trust Account $1,546, $ 1,095, Total Payables to Date $7,646, NOTE 2 $2,514, Morgan Stanley CD ($265,139.44) Board approved $1,034,000 on 3/13/14 for China Airline Incentive Program ($1,001,073.24) Board approved $1,028,500 on 5/22/14 for China market advertising ($300,000.00) Board approved $300,000 on 7/23/15 for Guam Football Association ($86,542.00) Board approved $86,542 on 7/23/15 for Department Revenue & Tax Auditors $861,930.96

29 GREATER CHINA MARKETING COMMITTEE MEETING 11:00AM FRIDAY, October 2, 2015 GVB MAIN CONFERENCE ROOM PAGE Page 1 of 1 GREATER CHINA MARKETING COMMITTEE MEETING FRIDAY October 2, 2015 GCMC MEMBERS IN ATTENDANCE: Bruce Kloppenburg, Joann Camacho, Charlene Chen, Terry Chung, Grace Kang, Tomoyuki Goto, Soohyun Lee, Chet Neri, Paula Monk, Gerry Perez Excused Absence: Jenny Cheon, Stephen Gatewood, Echo Man ABSENT GCMC MEMBERS: Pete Borja, Letitia Law-Bylerly, Tiffany Chan, Rolenda Faasuamalie, Jenny Kim, Sunardi Li, Luis Liu, Lin Yan GCMC OBSERVERS: Olga Tonkinh, Jennifer Chae GVB: Pilar Laguaña, Brian Borja, Russell Ocampo, Nakisha Onedera-Garrido I. CALL TO ORDER Chairman Kloppenburg called the meeting to order at 11:00 a.m. II. APPROVAL OF MINUTES Committee unanimously approved minutes of September 4, III. REPORT OF THE CHAIRMAN Chairman Kloppenburg reported that GVB just had a membership meeting and the concentration was on Japan s declining visitor arrivals and ways in which to combat this to minimize impact. The chairman also reported that the Korean market is at an upswing with the addition of new low-cost carriers entering the market. Furthermore, the China market continues to make small but important steps. IV. REPORT OF GVB MANAGEMENT (presented by Pilar Laguaña) Visitor Arrivals Update (Based on preliminary September 1-24, 2015 report): Marketing Manager Ms. Pilar Laguaña reported the following visitor arrival stats for the Greater China markets.

30 GREATER CHINA MARKETING COMMITTEE MEETING 11:00AM FRIDAY, October 2, 2015 GVB MAIN CONFERENCE ROOM PAGE Page 2 of 2 Ms. Laguaña reported that we continue to see a decline in visitor arrivals from Taiwan at -16.9% and 17.0% for FYTD and CYTD visitor arrivals. She further reported that we have surpassed our FY2015 goal pax of 20,000 for Mainland China visitor arrivals, welcoming 22,582 for our FYTD numbers for Hong Kong numbers have also decline -5.5% for FYTD and -0.6% for CYTD. o China Market Update Consumer Advertising Mr. Brian Borja reported on the ongoing consumer advertising campaigns currently in place in the Mainland China market. The advertising campaign utilizes print, online, and outdoor advertising in the cities of Shanghai, Beijing, Dalian and Guangzhou.

31 GREATER CHINA MARKETING COMMITTEE MEETING 11:00AM FRIDAY, October 2, 2015 GVB MAIN CONFERENCE ROOM PAGE Page 3 of 3 o Taiwan Market Update Mr. Russell Ocampo reported the following Taiwan market updates: 3-Month Forecast Seat capacity from October November will see a decrease of -2.9% and -2.2% respectively but will increase by 7.4% in December. Hsinchu Science Park s Fundraiser GVB s Taiwan office will be participating in the Hsinchu Science Park s Travel Fair on October 13 th to promote the Ko Ko Road Race, Shop Guam Festival, and 2016 Guam events. The travel fair provides free booths and is open to only Science Park companies, which is a good target audience for MICE tours. ITF 2015 Preparations for the International Travel Fair are ongoing. GVB is currently in the process of finalizing the booth design and preparing itinerary arrangement. This year, GVB is implementing an incentive program in which visitors will get a free Samsonite luggage if they purchase business class seating on China Airline s Taipei to Guam flight during the ITF period. Additionally, visitors will get free travel kits if they purchase Shop Guam Festival packages during the ITF period. This incentive is available to both China Airline and Eva Airline agents. Special Promotions with China Airlines GVB is engaged in a joint promotion with China Airlines to promote the daytime flights. The joint promotion includes providing visitors Tin Tint Print customized notebooks for those who visit Guam during Oct. 25 Nov. 30. GVB is also cooperating with China Airlines in ad promotions that utilize newspaper, magazine, and online media as well as facebook and taxi TV. China Airlines is also helping to promote the Koko Road Race through its FB fan page that has 345,546 fans. In addition, there will be an ad promotion on facebook in October and four travel agencies have joined in launching the Ko Ko Road Race package. Color Guam Fam Tour 3 bloggers have been invited to discover Guam using the Guam logo colors as the theme of their tour. The participants have received sponsorship from China Airlines for air tickets. o Hong Kong Market Update Mr. Brian Borja reported that GVB Hong Kong will be organizing a local race in Hong Kong to promote the Guam International Marathon The race will be held on December 20, 2015 with the purpose to raise awareness of the Guam International Marathon among Hong Kong runners. GVB Hong Kong is also working with local travel agents to offer discounter packages that will be sold on-site.

32 GREATER CHINA MARKETING COMMITTEE MEETING 11:00AM FRIDAY, October 2, 2015 GVB MAIN CONFERENCE ROOM PAGE Page 4 of 4 V. OLD BUSINESS Wow! Visit USA Outdoor Fun China Roadshow GVB China Office participated in the Wow! Visit USA Outdoor Fun China Road Show that took place th th in Shanghai, Beijing, Shenyang, and Chengdu from September GVB China office engaged in one-on-one talks with the travel trade in these respective cities. In attendance were over 30 representatives of key online travel agencies in Shanghai, 60 representatives of key North China outbound travel agencies in Beijing, 80 representatives of key Northeast China outbound travel agencies in Shenyang, and 10 local media in Chengdu. GVB Training Seminar in Hangzhou th GVB China Office conducted a sales training seminar in Hangzhou on September 18. Over 70 representatives of key tour operators in Hangzhou joined the training seminar. Joint Roadshow with U.S Commercial Services nd On September 22, GVB China Office participated in a joint roadshow with US Commercial Services in Shenzen. Over 50 travel agents and locals attended the roadshow event. GVB Beijing 3 rd Quarter Media Gathering rd GVB China s Beijing Office held a third-quarter media gathering on September 23. A total of 8, which comprised of media editors and KOLs attended the session. Shop Guam Festival was introduced to all media on site. Taiwan Press Event th GVB Taiwan held a press conference and trade gathering on September 24. The KoKo Road Race and Shop Guam Festival was promoted alongside all 2016 Guam Events.

33 GREATER CHINA MARKETING COMMITTEE MEETING 11:00AM FRIDAY, October 2, 2015 GVB MAIN CONFERENCE ROOM PAGE Page 5 of 5 V. NEW BUSINESS Beijing Business Development Meetings and Guam Sales Training Seminar in Henan Province, China Motion to approve travel for GVB Marketing Manager and one (1) GVB Marketing Officer to conduct business development meetings with travel trade partners in Beijing and a Guam Sales Training Seminar in Zhengzhou City, Henan Province, China from October 23-27, Cost is approximately $5,936.00, to be taken from China Sales Market Development Account No. CI-SMD023. Airfare: Round-trip Airfare: $1,200 x 2 pax $2, Per Diem: Beijing Lodging: $258 x 1 night x 2 pax $ Beijing M&IE: $119 x 1 day x 2 pax $ Zhengzhou Lodging: $145 x 3 Nights x 2 pax $ Zhengzhou M&IE: $114 x 4 Days x 2 pax $ Misc. Expenses: Business communication costs & excess baggage fees $1, Total $5, Background: In FY2015, Guam experienced tremendous positive growth in China visitor arrivals. Marketing and sales remains focused in the first tier cities of Beijing, Shanghai, and Guangzhou. Therefore, it is crucial to develop and strengthen relationships with our partners from these cities. GVB will meet with potential partners to develop more sales and marketing programs in support of direct service to Guam in the coming year, maximizing sales during the peak China outbound travel periods such as Chinese New Year and Summer period, as well as attracting visitors during historically low arrival periods for Guam. Henan Dahe International Travel Services Co., Ltd has committed to CNY 2016 Charter Flights with Dynamic Airways from Zhengzhou City in the Henan, China province. In an effort to support these incoming charters the Bureau will be conducting a Guam Sales Training Seminar for the travel trade as well as a consumer event in Henan, China. The sales seminar is designed to: (1) strengthen Guam s visibility and awareness among travel trade partners, (2) educate the travel trade on Guam products and upcoming campaigns such as Shop Guam Festival and Visit Guam 2016, and (3) enhance the networking and business ties between Guam and the travel trade in Henan, China. The seminar will take place in the capital of Henan Province, Zhengzhou City, which is located in east-central China and serves as the major transportation hub for central China and the political, economic, technological, and educational center of the Henan province. Zhengzhou city has a population of 3,677,000 with a gross national income per capita of 6,560 USD.

34 GREATER CHINA MARKETING COMMITTEE MEETING 11:00AM FRIDAY, October 2, 2015 GVB MAIN CONFERENCE ROOM PAGE Page 6 of 6 VI. ANNOUNCEMENTS The next Greater China Marketing Committee Meeting will be announced via . GEDA will be participating in a China Trade Mission led by Governor Calvo in Pudong, Shanghai from October 13 th - 16 th. Shop Guam Festival 2015 Vendor Training will be taking place all next week. GVB will be welcoming the National Tour Association s China Inbound Program operators during a familiarization tour that will take place from October 29 th - November 5 th. GVB will be hosting a United Airline s MICE Familiarization tour from November 1 st 5 th. VIII. ADJOURNMENT Chairman Kloppenburg adjourned the meeting at 11:46 a.m. s/s Approval by: Pilar Laguaña, Marketing Manager s/s Minutes prepared by: Nakisha Onedera-Garrido, MOI

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48 Mark S. Baldyga Bruce Kloppenburg Bartley Jackson Milton Morinaga Chairman Vice-Chairman Member Member Theresa C. Arriola Sam Shinohara Norio Nakajima Katarina Sgro Secretary Treasurer Member Member Eduardo Calvo Hong Soon Im Shelly Calvo Mayor Robert Hofmann Member Member Member Member Clifford A. Guzman Member GUAM VISITORS BUREAU (GVB) BOARD RESOLUTION NO: RELATIVE TO THE CONCERNS EXPRESSED BY GVB AND ITS MEMBERSHIP REGARDING THE USE OF TAF FUNDS FOR NON-TOURISM RELATED PURPOSES Preamble: Visitors to Guam pay a Hotel Occupancy Tax of eleven percent (11%) that is deposited into a Tourist Attraction Fund ( TAF ). The intent of the enabling legislation was to support tourism, culture, hospitality training, beautification and capital improvements relating to tourism and culture such as the Guam Museum. Title 11, Chapter 30, Creation of the Tourist Attraction Fund. (a) There is hereby created, separate and apart from other funds of the government of Guam, a fund known as the Tourist Attraction Fund (hereafter TAF). The TAF shall not be comingled with the General Fund and shall be kept in a separate bank account. All proceeds from the taxes collected under this Chapter shall be deposited in the TAF and shall be expended exclusively for purposes authorized in 9107 (GVB Board Duties) and 9117 (Fiscal Authority) of Title 12, Guam Code Annotated Title : Duties (of the Board) The Board shall: (a) Promote visitor satisfaction with Guam as a tourist destination and facilitate the orderly growth and maintenance of the visitor industry; (b) Encourage and support the employment of local residents in job opportunities in the tourism industry; (c) Assist in the development of adequate tourist facilities and attractions including local beatification projects; (d) Work with other entities to collect, analyze and evaluate pertinent data on the visitor industry; (e) Provide advice and technical assistance to tourism development organizations in planning programs to attract visitors and develop and disseminate literature for distribution to visitors and potential visitors to this territory; (f) Cooperate with regional agencies promoting Micronesia and the Marianas Islands as a tourist destination; (g) Encourage and support local activities, programs and development which

49 would enhance Guam as an attractive tourist destination; (h) Support the marketing of local arts, handicrafts and other manufactured products to visitors; and (i) Encourage local cultural activities for tourist and general public enjoyment. Title 12, Chapter (continued) The TAF may also be used to fund the following projects: (1) The creation, improvement or beautification of roads, avenues, boulevards, parkways, intersections, bicycle paths, motor bike trails, footpaths, biking trails, stairways, rivers, streams, estuaries, lagoons or other means of access and transportation. (2) The development and restoration of points of natural beauty or historic social or cultural significant, including means of access, parking, safety devices, concessions, restrooms, view points and information pavilions; (3) The construction of monuments, memorials, statues, fountains, arches, and similar projects; (4) The construction of buildings to be used for public purposes including zoos, aquariums, museums, athletic facilities, cultural centers, and performing arts complexes; (5) Landscaping, provisions of decorations or the enhancement of beauty of any projects listed in this Section; (6) Accessory projects reasonably necessary to projects listed in the Section; (7) Projects and programs identified in the Tumon Bay Master Plan (b) The TAF shall not be used for any purposes other than those enumerated or reasonably inferred herein or for purposes other than those relating to Guam tourism As can be seen, the only purposes for which the TAF is intended and authorized to be utilized are tourism, culture, hospitality training, beautification and capital improvements relating tourism and culture such as the Guam Museum. Since FY2012, the TAF was used to fund over $22 Million in line agency expenditures and projects that are outside of the scope of the TAF enabling legislation. Despite GVB s projection of a $4M increase in TAF funds for 2016, $7M was appropriated from the TAF for non-tourism related purposes and GVB s overall budget was reduced as compared to GVB s 2016 Budget included a request of $2.5 million to repair inoperative lighting along San Vitores Road, upgrade crosswalks at the K-Mart intersection, and install safety bollards to prevent a recurrence of the Feb 2012 stabbing incident in Tumon. These projects are needed for the safety and security of visitors and local residents alike. Unfortunately, none of these critically needed safety improvements were funded.

50 BE IT RESOLVED BY THE GUAM VISITORS BUREAU: WHEREAS, the Guam Visitors Bureau mission is to grow a sustainable visitor industry that generates economic growth for our island, jobs for our people and enhances the quality of life for all Guam s residents; and, WHEREAS, Guam s visitor industry continues to be challenged by fluctuating currencies and stiff competition by other destinations for visitors from its source markets of Japan, Korea, Taiwan, Greater China and Russia; and, WHEREAS, GVB's role and funding requirements has increased exponentially in public facility maintenance, visitor safety improvements, marketing to existing and new markets including China and Russia, as well as capital improvements and upkeep of our destination product - all crucial to maintaining and improving our market share; and WHEREAS, Guam's tourism hub of Tumon has not seen significant capital investment in over twenty years and is in immediate need of significant investments in beautification and safety projects in order to grow our visitor industry and GVB is working on a major beautification and upgrade plan that will require substantial funding; and, WHEREAS, the Board of Directors of the Guam Visitors Bureau respects the authority given to the Governor and Legislature by the people of Guam and recognizes the tremendous responsibility of managing the Government; and, WHEREAS, in recent years there has been a growing trend to utilize the TAF for nontourism or cultural related expenditures that are contrary to the TAF enabling act, challenging GVB s ability to respond effectively to market fluctuations or to implement much needed improvements to our destination product; and WHEREAS, the TAF would have sufficient resources for GVB to accomplish its mission providing that such funds are used strictly for tourism, culture, hospitality training, beautification and capital improvements relating tourism and culture such as the Guam Museum; NOW THEREFORE BE IT RESOLVED, that any and all future uses of the TAF, after debt service for the HOT bond, be designated and prioritized first and foremost to assist GVB in maintaining and improving our tourism destination product, marketing Guam as a destination of choice and performing necessary capital improvements in accordance with the spirit and intent of the TAF enabling legislation; and be it further RESOLVED, that the Board of Directors of the Guam Visitors Bureau respectfully request to be included in any deliberations and provided an opportunity to indicate the written position of the board prior to submittal of any bills that propose to utilize the TAF; and be it further RESOLVED, that any and all future excess TAF collections above and beyond the growing operational needs of the Guam Visitors Bureau be prioritized strictly for direct reinvestment into our visitor industry as contemplated in the enabling legislation, specifically for upgrades to our aging and deteriorating infrastructure, addressing visitor safety needs and the planning and implementation of capital improvements designed to elevate our tourism product for the benefit of our visitors and most especially for the economic growth and improved quality of

51 life for our residents and that no further line agency funding utilize the TAF unless and until completion of the significant capital improvements and beautification needed particularly in Tumon; and be it further RESOLVED, that the full 2016 budget request submitted by GVB be reinstated through a supplemental budget bill providing the necessary resources to execute much needed capital improvements related to visitor and resident safety to include: upgrades to the JFK/K Mart crosswalks; San Vitores street lighting repairs; multi-lingual crosswalk signage and safety bollard installations; and be it further RESOLVED, that any and all funds previously borrowed from the TAF for General Fund related purposes allowing the GVB to utilize such funds to further its mission, and be it further RESOLVED, that the Chairman certify and the Secretary attest to the adoption hereof, and that copies of the same be thereafter transmitted to the to the Honorable Eddie Baza Calvo, I Magalahen Guåhan and Senators of I Mina Trentai Tres Na Liheslaturan Guåhan. DULY AND REGULARLY ADOPTED BY THE BOARD OF DIRECTORS OF THE GUAM VISITORS BUREAU ON THE DAY OF OCTOBER 2015 MARK BALDYGA BRUCE KLOPPENBURG SAM SHINOHARA Chairman Vice-Chairman Treasurer MILTON MORINAGA EDUARDO CALVO CLIFFORD GUZMAN Member Member Member MAYOR ROBERT HOFMANN HONG SOON IM BARTLEY JACKSON Member Member Member KATARINA SGRO NORIO NAKAJIMA SHELLY CALVO Member Member Member IN WITNESS WHEREOF, I have hereto subscribed my name and affixed the seal of the said corporation this day of September, Two-Thousand and Fifteen. THERESA C. ARRIOLA Secretary

52 TAF Appropria*ons from FY2009 through FY2016 TAF DIRECT APPROPRIATIONS FY2009 FY2010 FY2011 FY2012 FY2013 HOT BOND - Series 2011A 3,801,287 6,998,363 UOG - Rhino Beetle Program 365, , ,000 UOG - Guampedia 140, , , ,000 GCC - Lodging Program 24,154 24,154 24,154 24,154 24,154 GCC - ApprenKceship Program DOA - Single Audit 18,000 18,000 18,000 18,000 18,000 DOA - TAF Forensic Audit GEPA - Beach Monitoring 100, , ,000 DPR - Public Restrooms 500, , , , ,166 DPR - Pool FaciliKes 349, , ,211 CAHA - Guam Territorial Band 50,000 50,000 40,000 40,000 CAHA - Sustainability Workshops for Local ArKsts Mayors - Street Maintenance 1,036,026 1,036,026 Mayors - BeauKficaKon 1,036, , ,921 Mayors - Street Maintenance, BeauKficaKon, Other 114, ,921 GPD DCA - Guam Museum Customs Agriculture DPR - OperaKons, Public Restrooms & Pool FaciliKes Veteran's Affairs Office Tam- Tumon- Harmon La[e FesKval 10,000 Guampedia FoundaKon 60,000 Tumon- Tamuning Precinct OperaKon for public streetlights GPA (DOA) 212,482 Limited ObligaKon Infrastructure 1997 Series A Bond 6,657,176 6,657,176 6,657,176 Guam Museum FoundaKon 170,697 Ypao RenovaKon and Improvements (DPR) 52,000 Tourist A[racKon Fund 17,250 FesKval of the Pacific Arts Revolving Fund 100,000 TOTAL INCLUDING HOT BOND: 7,330,762 7,461,496 10,001,716 6,792,247 9,846,841 TOTAL NOT INCLUDING HOT BOND: 673, ,320 3,344,540 2,990,960 2,778,478 TOTAL NOT IN SPIRIT OF TAF LAW: 50, ,211 1,425,237 1,425,237 SUPPLEMENTAL TAF APPROPRIATIONS FY2013 FY2014 FY2015 FY2016 GVB - AddiKonal PosiKons 170,958 UOG - Guampedia 60,000 Tamuning Mayor - La[e FesKval 10,000 GPD - Tumon Precinct OperaKons 500,000 GVB - CCTV Project 150,000 GVB - Inetnon Gef Pago 50,000 GVB - Hurao Academy 50,000 GVB - Duk Duk Goose Inc. 127,000 GCC - ApprenKceship Program 1,500,000 GVB - FestPac 2,000,000 GPD - OverKme 1,201,011 DOC - OverKme 798,989 GMH - CAT Scan 1,600,000 GVB - OperaKonal Needs & PATA 900,000 HRRA - Hagatna River Feasibility Study 300,000 Law Enforcement Personnel OverKme 4,000,000 Cultural & Sports Ambassador Fund (From FY2014 Balance) 200,000 TOTAL: 2,617, ,000,000 0 TOTAL NOT IN SPIRIT OF TAF LAW: 2,000, ,600,000 0 PASS THROUGH APPROPRIATIONS FY2013 FY2014 FY2015 FY2016 P'aa Taotao Tano 80, ,000 80,000 50,000 Historic Inalahan FoundaKon 30,000 50,000 25,000 25,000 Pacific War Museum 50,000 50,000 50,000 TASA 50,000 25,000 25,000 Tourism EducaKon Council 30,000 30,000 30,000 30,000 Haya Cultural PreservaKons 15,000 30,000 15,000 30,000

53 GVB Rainy Day Fund 200, , , ,000 The As & As of Chamorro Project 25,000 Micronesian Cruise AssociaKon 25,000 50,000 50,000 50,000 Guam InternaKonal Film FesKval 50, ,000 50,000 50,000 WWII Survivor History Video 50,000 FestPac 200,000 1,200, ,000 Humatak FoundaKon 75,000 50,000 75,000 Amot Taotao Tano Farm 50,000 25,000 25,000 Breaking the Cycle Inc. 50,000 Micronesian Chefs AssociaKon 50,000 Manhita Chamorro - Documentary 50,000 Hurao Acedemy 50,000 50,000 Inetnon Gef Pago 25,000 25,000 Guam HumaniKes Council 20,000 20,000 Guam Symphony Society 25,000 25,000 Duk Duk Goose Inc. 50,000 50,000 Ina Ku[ura Inc. 25,000 I Fanlalai'an 25,000 Ayuda FoundaKon 15,000 15,000 TASI 25,000 25,000 Cultural & Sports Ambassador Fund 200,000 Guam Unique Merchandising & Arts 25,000 Mister Guam 5,000 Guafi Inc. 25,000 TOTAL: 755,000 1,935,000 1,210,000 1,075,000 GVB OPERATIONS FY2013 FY2014 FY2015 FY2016 GVB FY2016 Request General AdministraKon 2,526,313 2,917,120 3,200,000 3,225,000 3,500,000 MarkeKng 9,104,882 10,100,000 13,917,000 14,619,191 15,816,500 PrinKng PromoKonal 467, ,000 Research 402, , , , ,000 DesKnaKon Development 1,521,373 1,720,000 1,085,000 Special Projects 1,215,855 2,000,000 Sports & Events 850, , ,000 Cultural, Heritage & Community Outreach 750, , ,000 Visitor Safety & SaKsfacKon 950, ,000 1,190,000 Business Development 354,750 DesKnaKon Maintenance 1,235,000 1,235,000 TOTAL: 15,238,239 17,487,134 21,200,000 22,279,191 24,521,250 FY2013 FY2014 FY2015 FY2016 GVB FY2016 Request CAPITAL IMPROVEMENT PROJECTS 1,412, ,265,000

54 FY2014 FY2015 FY2016 6,999,188 6,997,819 6,998, , , ,000 24,154 24,154 24, ,241 18,000 18,000 20,000 50, ,867 99, , , , , , ,000 40,000 40,000 30,000 1,036,026 1,036,026 1,036, , , , , , , , , , ,000 2,870,615 75,000 10,205,774 10,289,561 14,956,172 3,206,586 3,291,742 7,957,547 1,425,237 1,586,994 6,862,756

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