Minutes of the Executive Committee Meeting --- December 10, Brickell Avenue, Suite 2700 Miami, Florida U.S.A.

Transcription

1 Minutes of the Executive Committee Meeting --- December 10, Brickell Avenue, Suite 2700 Miami, Florida U.S.A. Attendance Report Executive Committee Members Attending Bruce Orosz, Chairman T. Willard Fair Elizabeth Hicks Eric Jellson Gene Prescott Diana Rodriguez, Special Assistant to the Mayor Miami-Dade County Carole Ann Taylor (via phone) Alex Tonarelli GMCVB Staff Attending William D. Talbert, III, CDME Rolando Aedo, CDME Jennifer Diaz Charlie Haz Connie Kinnard Ita Moriarty Dorcas Piegari Jose Sotolongo Alvin West, CDME Unable to Attend Dan Gelber, Mayor City of Miami Beach Steven Haas Jimmy Morales, City Manager City of Miami Beach Maria Sastre Dawn White Legal Counsel Jaret Davis CALL TO ORDER The Greater Miami Convention & Visitors Bureau Executive Committee Meeting was called to order at 4:12 p.m. by Mr. Bruce Orosz. 1. APPROVAL OF MINUTES Mr. Alex Tonarelli made a motion for approval of the September 17, 2018 minutes; was seconded by Ms. Elizabeth Hicks; and passed unanimously. 2. CHAIRMAN S REPORT REPORTS Mr. Bruce Orosz said that as a follow-up to the GMCVB Annual Meeting that was held on Friday, October 26, 2018, he congratulated the Bureau for a fabulous event. He added that the success of the GMCVB Annual Meeting was followed by the November 6, 2018 election in which the Miami 1

2 Beach Convention Center Headquarter Hotel was finally approved by 64% of the voters of the City of Miami Beach. Mr. Orosz said that he attended the closing party for Art Basel Miami Beach on Sunday, December 9, 2018 where he learned that 82,000 visitors attended Art Basel Miami Beach in 2018 compared to 79,000 from He said that the Art Basel team was very pleased with how Art Basel Miami Beach turned out despite the fact there may have been some issues due to the recent renovation and expansion of the Miami Beach Convention Center. Mr. Orosz said that for many years now we have urged the Florida Legislature to reinstate the film incentives program. He added that those against reinstating film incentives believe it is a corporate giveaway. Mr. Orosz said it is not a corporate giveaway when the incentive is paid after production. Mr. Orosz said that Florida TaxWatch wrote an analysis on the state s film and television industry in an effort to explain to the public the effectiveness of incentives to attract new businesses and grow existing ones. He said that local governments have begun to provide film incentives --- i.e., City of Miami Beach, City of Doral and Miami-Dade County --- which can be bundled together for a bigger economic impact. Mr. Rolando Aedo said that we are at a disadvantage when compared to the many states that are providing film incentives. Mr. Aedo said that, as a result, the Bureau has been collaborating with the City of Miami Beach, in particular, to advertise and communicate that it is providing film incentives in order to recruit film production companies to Greater Miami. 3. CONVENTION SALES Mr. Alex Tonarelli, GMCVB Chair of Convention Sales, said that he agrees that Art Basel Miami Beach was very strong this year evidenced by the volume of people who visited the satellite exhibits. Mr. Tonarelli said that he was glad to hear that the City of Miami was able to keep Ultra Music Festival by changing the venue from Bayfront Park in Downtown Miami to Miami Marine Stadium in Key Biscayne. Mr. Talbert said that there will be no parking for the Ultra Music Festival and added that guests will need to take ground transportation or walk to Key Biscayne. Mr. Talbert said that excluding New Year s Eve, Ultra Music Festival has the top Rev Par days in the history of the destination. Mr. Tonarelli added that Ultra Music Festival brings a lot of people from all over the world to Greater Miami. Mr. Talbert said that many Asians attend Ultra Music Festival and that the Bureau is trying to identify from which Asian countries the majority of the tourists are coming from. Mr. Tonarelli said that the last GMCVB General Managers Convention Sales Committee & Director of Sales Forum was held on Wednesday, October 24, He said that the feedback from the hoteliers was that group business was very good in Ms. Ita Moriarty reported that for October 2018 we had 185 sales leads, 52 bookings and 33,870 room nights with an economic impact of $12,041,712. She said that for November 2018 we had 143 sales leads, 56 bookings and 52,999 room nights with an economic impact of $26,353,847. Ms. Moriarty said that a significant booking in October 2018 was for Emerge Americas from April 29-30, 2019 at the Miami Beach Convention Center with 7,000 attendees and 1,945 room nights. Ms. Moriarty said that October 2018 activities included IMEX Americas in Las Vegas, NV; LIMRA in New York, NY; and Connecticut Sales Blitz in Hartford and Stamford, CT. Ms. Moriarty said 2

3 that November 2018 activities included Cvent Elite Meetings Alliance held at the EPIC Hotel in Downtown Miami; Financial and Insurance Conference Planners (FICP) in Orlando, FL; HPN Global Partner Summit in Miami Beach, FL; PCMA Midwest Chapter in Chicago, IL; Pharmaceutical Professional Summit in New Brunswick, NJ; and Nursing Organization Alliance (NOA) in Louisville, KY. Ms. Moriarty said that the Bureau has developed several videos to promote the new and reimagined Miami Beach Convention Center. Mr. Rolando Aedo said that the Bureau engaged World Red Eye which is a video and production company to produce a series of video packages of all the events happening at the Miami Beach Convention Center. Ms. Moriarty said that these video productions are a great sales tool for the Convention Sales Team because they capture the beauty and functionality of the convention center. 4. MARKETING & TOURISM Mr. Eric Jellson, GMCVB Chair of the Marketing & Tourism Committee, said that he just returned from Paris, France after attending ILTM which is a collection of global, regional and specialist travel agents. He said it is a great event to showcase the luxury side of our destination. He said that he hopes the December 29, 2018 College Football Championship Semi-Final game at the Hard Rock Stadium between the Alabama Crimson Tide and Oklahoma Sooners is a blockbuster event with an economic impact greater than expected. Mr. Aedo reported on the market indicators from November 2017 to October He said that during this time period Overnight Visitors had a 3.2% increase; MIA Arrivals a 1.6% increase; and PortMiami a 7.1% increase which was off the charts. He said that for October 2018, the scenario was a little different for Overnight Visitors and MIA Arrivals with decreases of 3.3% and 5.4%, respectively. Mr. Aedo reported on other market indicators for first 28 days of November He said that Occupancy was down in Miami Beach and Downtown by 1.5% and 2.5%, respectively. He added that some of the hotels in Miami Beach are back online after being closed since Hurricane Irma which contributed to the increases of Room Rate and Rev Par of 5.1% and 3.5%, respectively. Mr. Aedo said that although Room Rate and Rev Par were down for November 2018 in Downtown, there was growth form November 2017 to October 2018 of 6.2% and 9.1%, respectively. He said that CBRE Hospitality and STR forecast that Rev Par will remain relatively flat for Mr. Aedo reported on the upcoming new service at Miami International Airport including daily service from Fortaleza and Brasilia, Brazil to Miami on Gol Airlines starting on November 4, 2018; seasonal operation five times per week until April 2019 from Edmonton, Winnipeg and Toronto, Canada to Miami on FLAIR Airlines starting on December 15, 2018; and three times per week service from Santa Marta, Colombia to Miami on Viva Air starting December 18, He said that we have all the major cities covered in Colombia and now we are adding secondary cities such as, Santa Marta in Colombia. He said that we also have new service from Europe and Africa including daily service from London Gatwick to Miami on Norwegian Airlines starting on March 31, 2019; three times per week service from Casablanca, Morocco to Miami on Royal Air Maroc starting on April 3, 2019; and four times per week service from Warsaw, Poland to Miami on LOT Polish Airlines starting on June 1,

4 Mr. Aedo reported on the new ships at PortMiami including MSC Meraviglia and Norwegian Encore in Fall Ms. Diana Rodriguez said that Miami is known as the Cruise Capital of the World because we had a record-breaking day with 52,000 cruise passengers. Mr. Aedo gave a recap of GMCVB Travel Industry Sales for October and November 2018 including FIT Travel Tradeshow in Buenos Aires, Argentina from October 1-2, 2018; Symphony of the Seas Sail Away Event on November 15, 2018 at Smith & Wollensky in Miami Beach; Sales Trip to Georgetown, Guyana from November 6-9, 2018; and World Travel Market in London, England from November 5-7, He said that the Travel Industry Sales Team engages tour operators and travel agents in domestic and international markets to promote our destination. Mr. Aedo gave a recap of GMCVB Advertising & Digital Marketing for October and November 2018 including utilizing a mix of print, digital and social media to share messaging about the Miami Beach Convention Center to a highly targeted list of planners; expanding our partnership with Cvent by investing in their platform; using social media to communicate our message; enhancing our website with new and updated content including luxury hotels, Lincoln Road webcam, etc.; and targeting culture seekers through programs and campaigns. Mr. Aedo gave a recap of GMCVB Media Relations & Promotions for October and November 2019 including World Travel Market in London, England from November 5-9, 2018; Ultra Lux Cross Market Press Tour from November 14-18, 2018; and lots of media visits from around the world including Casa Vogue from Brazil; Elle from the United States; Daily Star from the United Kingdom; and Premium Magazine from Switzerland. He said that these media visits result in articles being written about the destination. Ms. Jennifer Diaz said that one recent media visit from Swiss Magazine included Miami on its cover in addition to a 25-page article about Miami. She said that the article was dubbed Miami Everything but Black and White with a circulation of 2.6 million readers and an ad equivalency value of $1,200,000. Mr. Talbert congratulated Ms. Jennifer Diaz on her recent promotion to Vice President of Communications. Mr. Aedo gave a recap of GMVB Cultural Tourism for October and November 2018 including Art & Design Cross Market Press Tour from October 18-21, 2018; World Travel Market in London, England from November 5-7, 2018; National Arts Marketing Project Conference in Seattle, WA from November 9-12, 2018; and partnering with Goldman Global Arts to support internationally renowned artists through Wynwood Walls Artist Residency Program. Mr. Aedo gave a recap of GMCVB LGBTQ Marketing for October and November 2018 including Celebrate Orgullo from October 1-12, 2018; National LGBTQ Task Force Gala on October 6, 2018 and the Miami-Dade Gay & Lesbian Chamber of Commerce Business EXPOsure Luncheon on October 10, Mr. Aedo said that our great relationship with the Miami-Dade Gay & Lesbian Chamber of Commerce will help us secure several LGBTQ meetings and conventions in the future. Mr. Aedo said that the Miami Temptations Program continues to grow. He said that, by popular demand, all of our temptations programs are now two-months long. Mr. Aedo said that the Partnership Department had a record-breaking year in generating private revenue for fiscal year 2017/2018 and said that we are off to a good start in the new fiscal year. 4

5 Mr. Aedo said that upcoming GMCVB events include the 2018 Annual GMCVB & GMBHA Holiday Reception at The Biltmore Hotel on Wednesday, December 12, 2018 and the 2019 GMCVB Vacation Planner Launch at El Cielo Downtown Miami on Wednesday, January 16, MULTICULTURAL TOURISM & DEVELOPMENT Ms. Connie Kinnard, Vice President of Multicultural Tourism & Development, gave a recap of the October and November 2018 multicultural events including welcoming the 20 th Annual AfrICANDO Conference at the DoubleTree Miami Airport Convention Center; sponsoring a threehour guided tour led by Dr. Paul George with a group of over 50 AfrICANDO attendees to experience two of our heritage neighborhoods; attending Miami Carnival with over 50,000 attendees as it celebrated its 34 th year; hosting the Inaugural Hispanic Heritage Month Community Tour on October 13, 2018 at several historic landmarks in Greater Miami; and kicking-off Art of Black Miami at the Miami Brightline Station on November 8, 2018 with several special guests. Ms. Kinnard said that Art of Black Miami is no longer just a satellite show during Art Basel Miami Beach. She said that Art of Black Miami is now 365 days a year. She said that on October 3, 2018 the GMCVB sponsored Art Talk Back at the Sandrell Rivers Theater in Liberty City. Ms. Kinnard said that the Multicultural Tourism & Development Department partnered with the Miami Dolphins on their community outreach efforts also known as Football Unites Cultural Tours. She said the tours consisted of former and current Miami Dolphin players and other community representatives touring the Holocaust Memorial on October 16, 2018 and touring the Liberty City and Little Haiti neighborhoods on November 6, Ms. Kinnard said that other multicultural events in October and November 2018 included attending 1,000 Celia s Gala at the Cuban Museum; participating in the Cultural Arts & Design FAM which included a ride on the Tap Tap Tour Bus which boards at the Little Haiti Cultural Complex; and participating on another graduation from the Miami Bayside Foundation & GMCVB Tourism Business Enhancement Program on Thursday, November 15, SPORTS & ENTERTAINMENT TOURISM Mr. Jose Sotolongo, Director of Sports & Entertainment Tourism, said that that we hosted SoccerEx at Marlins Park from November 15-16, He said that SoccerEx is the world largest B2B soccer convention. He said that SoccerEx will be returning to Greater Miami next year and will take place at the J.W. Marriott Miami Turnberry Resort & Spa in Aventura, Florida. Mr. Sotolongo gave a recap of the October and November 2018 sporting events including ITF Young Seniors World Championships in Miami Beach, Florida from October 21 to November 5, 2018; Red Bull Foiling Generation Global Final in Key Biscayne, Florida from November 9-11, 2018; Ford 400 Homestead Miami Speedway from November 16-18, 2018 won by Joey Logano; and Peru vs. Chile soccer match at Hard Rock Stadium on October 12, Mr. Sotolongo gave a recap of filming happening in Miami thanks to the film incentives being offered by several municipalities including Miami-Dade County, City of Miami Beach and City of Doral. He said that some of the filming will include Snowbirds starring Susan Sarandon; Bad Boys for Life starring Will Smith; and Critical Thinking starring John Leguzamo. Mr. Talbert said we 5

6 have to do a better job of communicating that we want the State of Florida to start offering film incentives again. Mr. Sotolongo said that governor-elect Ron DeSantis is willing to listen and added that this is a step in the right direction. 7. FINANCE & ADMINISTRATION Ms. Elizabeth Hicks, Chair of the GMCVB Finance Committee Meeting, said that the last GMCVB Finance Committee Meeting was held on Wednesday, December 5, She said that at that meeting we reviewed the Bureau s year-end financial statements; had a discussion with our auditors; and met with one of our portfolio managers. She said that a copy of the audit needs to be submitted to the City of Miami Beach on December 31 st. She said that as a result of such a tight deadline, most of the pre-audit work is done prior to the December GMCVB Finance Committee Meeting. Ms. Hicks said that the auditors are very impressed with the competencies, skills and controls of the accounting staff. She said that last year the auditors made a recommendation regarding cyber security which the auditors felt it was addressed this year with the current cyber security controls in place. Ms. Hicks said that the operating surplus for fiscal year 2017/2018 was $887,000 versus a forecast of $475,000. She added that net revenue was on target with an actual of $31,936 versus a forecast of $31,960. She said that there was a -.3% unfavorable variance to forecast in the 2% F&B Tax revenue due to selling fewer rooms. She said that the underspending in sales, marketing & promotions has to do with timing differences and added that these remaining program funds will be designated to specific initiatives in the new fiscal year as well as made available as incremental dollars for program enhancements. She said that $1,325,000 will be a carried over from fiscal year 2017/2018 to fiscal year 2018/2019 for marketing expenditures that were not completed this year and for reserves for future host city events. Ms. Hicks said that the Bureau s financial position and liquidity remains very strong. She said we have a cash position of $8,842,479 and an additional $12,472,653 in business recovery reserves. Mr. Orosz asked why the revenue from Airbnb was not enough to offset the decline in the 2% F&B Tax revenue for fiscal year 2017/2018. Mr. West said that the decline in the 2% F&B Tax can be attributed to a variety of reasons including people staying at hotels after Hurricane Irma but not spending any money in the hotel restaurants and hotel closures due to damages from Hurricane Irma which means these hotels did not contribute to revenue coming from F&B. Ms. Hicks said that the Bureau has two primary portfolio managers who are overseen by the GMCVB Finance Committee and by an outside investment consultant. She said that the GMCVB Finance Committee is very pleased with this arrangement. She said that the portfolio managers have a reputation of outperforming benchmarks and she feels it is important to be patient especially during a volatile market. Ms. Hicks said that over the past two years the return on the Bureau s investment portfolio has been 10% versus a benchmark of 10.3% which is quite close. 8. PRESIDENT S REPORT Mr. Talbert thanked everyone for their support on getting the referendum for the convention center headquarter hotel passed. He said that on July 25, 2018 all seven City of Miami Beach Commissioners voted in favor of the referendum being placed on the November 6, 2018 ballot. He 6

7 said that now we need to get the convention center headquarter hotel built. Ms. Diana Rodriguez asked how long will it take. Mr. Aedo said that it will probably take three years to build including one year for permitting and two years of construction. Mr. Talbert said it is important to do it properly. Mr. Talbert said that without the extension of the RDA by Miami-Dade County there would not have been a convention center expansion. Mr. Talbert said that we are looking towards the future. He said that the Bureau put out a Request For Proposal (RFP) for the GMCVB Five-Year Strategic Plan. He said that nine firms submitted an RFP of which the screening committee narrowed it down to seven. Mr. Talbert said that the screening committee recommended InterVISTAS which is the company he is endorsing as well. Mr. Aedo said that it was a very comprehensive process and that the steering committee consisted of twenty-four stakeholders. Mr. Tonarelli said that all of the contenders were very competitive with what they were offering for the price value. Mr. Jellson said that it is important to choose the right company because it will shape Greater Miami s strategy for the next five years. Mr. Aedo said that InterVISTAS is a great firm that has brought in other experts for this assignment. Mr. Aedo said that this is probably the most important strategic plan that we have ever done in the history of the Bureau. Mr. Alex Tonarelli made a motion for approval of InterVISTAS as the company that will spearhead the GMCVB Five-Year Strategic Plan from ; was seconded by Mr. Eric Jellson; and passed unanimously. Three members of the InterVISTAS team introduced themselves --- Ms. Sonia Murray, Ms. Michelle Simmons and Mr. Greg Talley --- and thanked the GMCVB Executive Committee for having selected them for the GMCVB Five-Year Strategic Plan. There being no other business at hand, the meeting was adjourned at 5:46 p.m. 7