Minutes of the Board of Directors Meeting September 24, 2018

Transcription

1 Minutes of the Board of Directors Meeting September 24, Hotel South Beach, 2341 Collins Avenue --- Ballroom Level, Poco Terra Miami Beach, Florida U.S.A. Attendance Report Members Attending GMCVB Staff Attending Members Unable to Attend Board of Directors Steve Adkins Keon Hardemon, Chairman City of Miami Joe Hovancak Wendy Kallergis Ben Mollere Abe Ng Mohammad Qureshi Hydi Webb Executive Committee Bruce Orosz, Chairman Elizabeth Hicks (via telephone) Gene Prescott Diana Rodriguez Mark Samuelian, Commissioner City of Miami Beach Alex Tonarelli Dawn White Ex Officio Members Michael Finney Eric Knowles Ibis Romero Arlyn Rull Past Chairs Christopher Perks Bureau Staff William D. Talbert, III, CDME Rolando Aedo, CDME Ginny Gutierrez Charlie Haz Connie Kinnard Ita Moriarty Dorcas Piegari Jose Sotolongo Alvin West, CDME Legal Counsel Jaret Davis, Greenberg Traurig Board of Directors Henry Crespo Luis Gazitua Sally Heyman, Commissioner Miami-Dade County Eric Jellson John Mulrey Alan G. Randolph Alfredo Richard Stephen R. Shelley, Vice Mayor City of Homestead Executive Committee T. Willard Fair Steven Haas Jimmy Morales, City Manager City of Miami Beach Maria Sastre Carole Ann Taylor Ex Officio Members Wilfredo Gort Alfred Sanchez Past Chairs Richard Fain Adolfo Henriques Thomas F. Hewitt Donald E. Lefton Sidney Levin Stephen D. Nostrand 1

2 R. Donahue Peebles Stephen Sonnabend Dorothy C. Weaver CALL TO ORDER The Greater Miami Convention & Visitors Bureau Board of Directors meeting was called to order at 4:16 p.m. by Mr. Bruce Orosz. 1. APPROVAL OF MINUTES A motion for approval of the meeting minutes from May 29, 2018 was moved by Mr. Steve Adkins; seconded by Mr. Gene Prescott; and passed unanimously. 2. CHAIRMAN S REPORT REPORTS Mr. Orosz thanked 1 Hotel South Beach for hosting our board meeting. He added that it was perfect timing because esports was holding its conference at the hotel as well. Mr. Jose Sotolongo said esports is a form of video game competition with professional players and teams who get paid millions of dollars. Mr. Orosz said that Ms. Jennifer Diaz, GMCVB Associate Vice President of Media Relations, and he attended the Brand USA 12 th Annual US-China Tourism Leadership Summit in China. He said that the three-day summit was very impactful. Mr. Orosz said that China is practically a cashless society with most Chinese using their cell phones to conduct all their transactions. He said numerous meetings took place including one that was held with twelve media partners in which the message that Greater Miami is tourism-friendly was reemphasized. Mr. Orosz said that he attended Grand Basel in Switzerland along with other stakeholders because the show will be held at the Miami Beach Convention Center in February He said that Grand Basel is an Auto Show with one-of-a-kind automobiles. Mr. Orosz said that the car collectible business is bigger than the art collectible business. He said Grand Basel will put a spotlight on Greater Miami. He added that this is a show for real collectors and not a consumer show although some cars will be for sale. 3. FINANCE & ADMINISTRATION Mr. Alvin West said that the last GMCVB Finance Committee meeting was held on Thursday, September 13, Mr. West said that during the meeting, the GMCVB Finance Committee reviewed the proposed budget for fiscal year 2018/2019 line item by line item. Mr. West added that on Monday, September 17, 2018 the GMCVB Executive Committee approved the proposed budget and recommended its approval by the GMCVB Board of Directors. 2

3 Mr. Talbert said that the Bureau is conservative about revenue and conservative about expenses. He said that one of the revenue strengths we have now for a second year comes from Airbnb that has been voluntarily remitting the required taxes as of May He added that home sharing revenue (i.e., Airbnb) represents approximately 7% of the Tourist Development Tax (TDT) collections. He said that there is always the possibility that home sharing revenue will be controlled at the state level in the future. Mr. Talbert acknowledged that the City of Miami Beach Commission voted unanimously to include on the November 6, 2018 ballot a referendum on the lease of city property for the Convention Center Headquarter Hotel which will be connected to the Miami Beach Convention Center and have 800 rooms. He said that the convention center hotel referendum was not certain until the Miami Beach Commission vote took place. He added that the Bureau is invested in the convention center hotel because we need to get it done in order to attract more conventions, conferences and meetings. Mr. Talbert gave a brief overview of the proposed budget which includes a three-percent pool for performance adjustments to base salary; an enhancement of the Temptations Program; a consolidation of the Sports Tourism and Entertainment Tourism departments; funding for the update of the GMCVB Strategic Plan; and reserves for future host city events including Super Bowl 2020, two college semi-final football games and World Cup Mr. Talbert said that the Bureau will not be adding more staff to its budget. Mr. Talbert said that the Bureau has had 27 consecutive years of clean audits with no management letter. Ms. Elizabeth Hicks, Chair of the GMCVB Finance Committee, said that the Bureau does an amazingly thorough job in planning the budget. She added that a conservative approach is applied to revenue assumptions. Ms. Hicks said that there is a carryover between fiscal years for marketing programs due to timing differences. Mr. West said that the Summary of Variance Analysis explains the timing differences alluded to by Ms. Hicks. Mr. West said that for fiscal year 2017/2018 the forecasted net revenue was $31,960,000 against a budget of $29,846,000; an increase of $2,114,000 or 7.1%. He said that budgeted net revenue of $29,846,000 was a conservative number based on the challenges from the prior year including Hurricanes Irma and Matthew; tourist perceptions lingering from the Zika virus; and a convention center operating at less than 50% of its capacity because of its expansion and renovation. He added that the 7.1% increase in net revenue can also be attributed to revenue collections from Airbnb that were difficult to forecast due to it being a new revenue stream. Mr. West said that for fiscal year 2017/2018 the forecasted total expenses was $31,485,000 against a budget of $31,300,000; an increase of $185,000 or.6%. He said that this increase was due to expenses that were carried over from the prior year. Mr. West said that strong revenues from fiscal year 2017/2018 primarily due to Airbnb means that we will have $1,325,000 carried forward to fiscal year 2018/2019 for programs including $100,000 for the Miami Beach Convention Center Opening Gala in January 2019; $150,000 for the headquarter hotel vote; $500,000 for the strategic industry plan; $400,000 in ground transportation for three major conventions coming to Miami in Jehovah s Witness, Plastic Surgeons and 3

4 Million Dollar Round Table; and $175,000 for multicultural tourism programs including the American Black Film Festival. Mr. West said that for fiscal year 2018/2019 the budget for net revenue is $31,857,000 against a forecast of $31,960,000; a decrease of $103,000 or -.3%. He said that the budget for total expenses is $33,176,000 against a forecast of $31,485,000; an increase of $1,691,000 or 5.4%. Mr. West said that the $1,691,000 increase is comprised of the $1,325,000 carryforward from fiscal year 2017/2018 to 2018/2019 explained earlier and additional reserves for Super Bowl 2020, NAACP and Wrestlemania. He said that although there is an adjusted operating deficit of $444,000 for fiscal year 2018/2019, he feels confident that we will breakeven for the fiscal year. City of Miami Chairman of the Commission Keon Hardemon thanked the Bureau for its efforts in promoting Miami and Miami Beach as Greater Miami. He added that we can count on his vote for the proposed budget for fiscal year 2018/2019 and thanked everyone for the opportunity to serve on the GMCVB Board of Directors for the past six years. Mr. Gene Prescott made a motion for approval of the 2018/2019 GMCVB Annual Budget; was seconded by Mr. Alex Tonarelli; and passed unanimously. 4. CONVENTION SALES Mr. Alex Tonarelli, Chair of the Convention Sales Committee, said that although we had a few hiccups with the first convention at the new and reimagined Miami Beach Convention Center, he knows that everything will eventually fall into place. Mr. Tonarelli said that the last GMCVB Convention Sales Committee meeting was held on Monday, June 4, 2018 and was well attended by over 30 hoteliers. He said that this was the first meeting in which the hoteliers reported that business is beginning to slow down for third quarter especially in group business. He said that this is due to the two hurricanes we had the prior year and that this is a challenge that must be overcome with meeting planners. He said that Greater Miami has a lot to offer especially now with the new and reimagined Miami Beach Convention Center. Mr. Tonarelli said that the next GMCVB Convention Sales Committee meeting will be held on Wednesday, October 24, He said that he is looking forward to hearing what the hoteliers have to say about first and second quarter business for Ms. Ita Moriarty reported that from October 2017 to August 2018 we had 1,926, sales leads, 709 bookings and 457,882 room nights with an economic impact of $174,834,128. Ms. Moriarty said that the Meeting Services department backs up the Convention Sales team. She reported that from October 2017 to August 2018 we had 91 site inspections, 7 familiarization trips and 685 meetings were serviced representing a total of 334,184 delegates and 468 meeting planner attendees. Ms. Moriarty thanked Mr. Bruce Orosz and Mr. Ben Mollere for meeting with Ms. Sonia Fong, GMCVB Associate Vice President of Convention Sales, on a regular basis to help bring medical meetings to the Miami Beach Convention Center. She said that the Congress of Neurological Surgeons for September 2020 with 2,199 room nights is a booking that resulted from this 4

5 partnership. Mr. Orosz thanked Mr. Ben Mollere for his efforts in helping to bring medical meetings to Greater Miami. Ms. Moriarty said that the highlights from fiscal year 2017/2018 included sales blitzes to promote the MBCC renovation; marketing and promotion of the MBCC; more joint efforts with Sports Tourism; CVENT partnership digital expansion and, of course, generating leads, bookings and room nights. Ms. Moriarty said that we are currently hosting the American Health Management Association (AHIMA) at the Miami Beach Convention Center. She added that the group is headquartered at the Loews Miami Beach Hotel. She said that AHIMA will hold its general session in the new 60,000 square-foot ballroom at the Miami Beach Convention Center. Mr. Tonarelli said that despite the few hiccups, Spectra Venue Management and Centerplate have done everything in their power to ensure a successful convention. Ms. Moriarty said that one of the most significant meetings we will be hosting for fiscal year 2018/2019 is the Christian Congregation of Jehovah s Witness at Marlins Park in May 2019 and July 2019 with a combined 57,000 attendees. Ms. Moriarty said that for fiscal year 2018/2019, we are hosting a number of meetings that are opportunities to reconnect for future events including the Hospitality Performance Network Global in November 2018 with 800 attendees; American Society of Association Executives (ASAE) CEO Symposium in January 2019 with 150 clients; Incentive Research Foundation in June 2019 at the Loews Miami Beach Hotel with 800 attendees; National Association of Latino Elected Officials (NALEO) in June 2019 with 600 delegates; and Police Executive Research Forum in May 2019 with 550 attendees. Ms. Moriarty said that the highlights for fiscal year 2018/2019 include the Miami Beach Convention Center (MBCC) Grand Opening; targeted fam trips for MBCC users; creation of the MBCC Advisory Board; review and evaluate partnership with CVENT; continue to find creative advertising opportunities; continue VIP events with hotel partners through the DC office; and expand outreach to community for Miami Magnet Program. She added that it is very important to engage our local stakeholders to help them book their meetings. Ms. Moriarty said that strategic partnerships for fiscal year 2018/2019 include Conference Direct, CVENT, Financial Insurance Conference Planners (FICP); International Congress & Convention Association (ICCA); co-ops to increase short term business; and working with our advertising agency (VML) to identify new opportunities with traditional advertising as well as digital advertising that is better suited for corporate clients and the younger generation. Ms. Moriarty gave a sales and marketing recap of the Association Society of Association Executives (ASAE) held in Chicago, Illinois from August 18-21, She said that City of Miami Beach Mayor Dan Gelber, Convention Center Advisory Board Chairman Laurence Herrup and Mr. Talbert were in attendance to meet with Miami Beach Convention Center clients from AHIMA, American College of Emergency Physicians and many more. She added that five hotels joined the GMCVB Team in Chicago where a VIP client dinner was held along with other activities to promote the Miami Beach Convention Center including a virtual reality booth. Ms. Moriarty said that ASAE is like the Super Bowl of group business. Mr. Aedo said that the media lounge was an information 5

6 booth where a lot of the GMCVB Media Team creativity was leveraged with video demonstrations, mojito bar activation, headshot lounge, etc. Mr. Aedo said we even had a big billboard showcasing the Miami Beach Convention Center outside of O Hare International Airport to greet all of the ASAE delegates. Mr. Aedo said that it is obvious that the renovation and expansion of the Miami Beach Convention Center is a game changer. 5. MARKETING & TOURISM Mr. Rolando Aedo thanked the airport and seaport partners present at the meeting, Mesdames Arlyn Rull and Hydi Webb, respectively. Mr. Aedo reported on the market indicators from August 2017 to July He said that MIA Arrivals has been relatively flat during this time period and added that we had a small increase in Overnight Visitors and PortMiami of 1.6% and.5%, respectively. He said he anticipates that Overnight Visitors and PortMiami numbers will start to increase significantly with the arrival of new ships at PortMiami. Mr. Aedo said that the GMCVB Partner Marketing and Planning Retreat which was held this year on Thursday, June 7, 2018 at the Miami Airport Convention Center is where the strategic priorities are derived for the coming fiscal year. He said that the feedback from our stakeholders is invaluable. Mr. Aedo said that the top strategic priorities for fiscal year 2018/2019 include developing a new five-year strategic plan that will span from 2019 to 2024; consolidating our content for a more competitive edge; leveraging the Miami Beach Convention Center launch to attract more business because Meetings Mean Business and more business means more jobs; expanding private revenue through monetization of all GMCVB channels; leveraging new tourism infrastructure such as the new terminals at PortMiami, Brightline, new hotels, etc.; integrating the Multicultural Tourism Development Department (MTDD) on all GMCVB platforms with a deeper integration in the Temptations program to celebrate the diversity in our community; expanding Sports & Entertainment efforts with new incentives; and reaffirming our commitment to Hotels First to drive demand for hotel stays. Mr. Aedo said that the Bureau has delivered on the strategic priorities from the last five-year strategic plan and added that it is a very important process because it is essentially the roadmap that the Bureau will follow for the next five years. He said that we received nine Request for Proposals (RFPs) for the new strategic plan that will span from 2019 to He added that the finalists will be making their presentations on Thursday, October 4, Mr. Aedo said that from a marketing perspective, content is one of our key assets. He said that content is the story of our destination. He added that we are competing with other destinations as well as other media platforms including Expedia, Google, etc. He said we are the best at telling the Miami story. He said that content lives in articles, press releases, photos, videos, etc. and added that the Bureau has invested a lot of money in developing new content. He said that we are centralizing all of the content not just for easy access within the Bureau but also to make it readily available for our stakeholders. He said that content will be touched upon our strategic plan as well. Mr. Aedo said that the 2018/2019 strategic priorities for Travel Industry Sales include continuing to generate hotel group sales leads for the Miami Beach Convention Center; increasing B2B cruise focused sales activities leading up to ship arrivals; hosting the American Society of Travel Agent s Annual Conference in August 2019; and strengthening B2B efforts to support GMCVB s new Ultra- Luxury and Luxury media efforts. Ms. Hydi Webb said that there are a lot of exciting things 6

7 happening at PortMiami including that August 2018 was the biggest cargo month in port history. She said that in November 2018 PortMiami will welcome two brand new ships the Symphony of the Seas from Royal Caribbean and the Norwegian Bliss from NCL. Mr. Aedo said that the 2018/2019 strategic priorities for Media Relations & Promotions include highlighting the importance of Meetings Mean Business angle among local media and stakeholders especially to leverage the Miami Beach Convention Center; leveraging new cruise product sailing from Port Miami; driving hotel room nights by continuing the Miami Hotel PR campaign with dedicated press trips; and supporting the authenticity of our neighborhoods. Mr. Aedo said that the 2018/2019 strategic priorities for Advertising and Digital Marketing include launching the Google DMO partnership program for Miami and Miami Beach that will allow us to deploy the content through their platform; continuing to expand the successful co-op program portfolio to provide partners with a broad array of business building opportunities; and using the Found In Miami campaign to increase mass awareness of Miami among consumers and meeting planners. He said that the Bureau launched a new website in August 2018 with numerous enhancements. Mr. Aedo said that this past spring we shot 45 new videos showcasing our neighborhoods from South Beach to South Dade and from Aventura to Coconut Grove. He said that these are assets that will be available to our partners. Mr. Aedo said that a key accomplishment for Marketing & Creative Services in fiscal year 2017/2018 was the sales and marketing support for the Miami Beach Convention Center through the production of four videos in partnership with NorthStar Video as well as development of a marketing plan including the production of sales brochures and print mailers. He said that a strategic priority for 2018/2019 will be the evolution of the Miami Temptations Programs. Mr. Aedo said that the 2018/2019 strategic priorities for Research & Strategic Planning include taking action on the critical issues that will drive the travel and tourism industry forward for the next five years. He said that once the new strategic plan consultant is selected, additional research will be conducted and talent workshops will be held to continue to identify the priorities for the coming year including mobility, resilience, etc. Mr. Aedo said that a key accomplishment for Cultural Tourism in fiscal year 2017/2018 was appointing a new Director of Cultural Tourism. He said that the 2018/2019 strategic priorities for Cultural Tourism include continuing to expand partnerships with Art Basel Switzerland/Hong Kong/Miami Beach to grow attendance at the Miami fairs; increasing global awareness of Miami as a destination for cultural arts meetings and conventions; organizing a Cultural Tourism Task Force; and creating Cultural Tourism programs and opportunities to secure funding and sponsorship support. Mr. Aedo said that a key accomplishment for LGBTQ Marketing in fiscal year 2017/2018 was promoting an internal GMCVB Team member to Director of LGBTQ Marketing. He said that the 2018/2019 strategic priorities for LGBTQ Marketing include establishing an Advisory Committee and developing new marketing collateral that will showcase Greater Miami as a premier destination for LGBTQ travelers. Mr. Steve Adkins said that he is very pleased with Mr. Dan Rios, the new GMCVB Director of LGBTQ Marketing, who has exhibited strong leadership skills and is a team player. 7

8 Mr. Aedo said that key accomplishments for the Partnership Division in fiscal year 2017/2018 was generating record partner revenue; executing more than 60 successful networking and training events; and developing the Miami Begins With Me customer service program as an online training tool. He said that the 2018/2019 strategic priorities for the Partnership Division include developing a comprehensive monetization plan for business development, private revenue generation and sale of customized sponsorship packages and enhancing upon signature partner events to increase partnership relationships, retention and sponsorship investment. 6. MULTICULTURAL TOURISM & DEVELOPMENT Ms. Connie Kinnard, Vice President of Multicultural Tourism & Development, said that a recent accomplishment included partnering with Miami Dolphins on a program called Football Unites whereby the football players toured Little Havana and Overtown to learn more about Miami s heritage neighborhoods. She added that the event received a lot of coverage in The Miami Herald. She said that Miami Carnival 2018 which is one of the largest Caribbean carnivals in the United States, will be held on Sunday, October 7, 2018 at the Miami-Dade County Fair & Exposition. She added that the Multicultural Tourism & Development Department has organized several Black Heritage Tours in the past and that on Saturday, October 13, 2018 it will hold its inaugural Hispanic Heritage Tour. She said that the Hispanic Heritage Tour will include a stops at the Freedom Tower and Ancient Spanish Monastery. Ms. Kinnard said that key accomplishments and initiatives from fiscal year 2017/2018 included facilitating the tourism business development small business sessions for a third year in partnership with the Bayside Foundation; collaborating with the Partnership department in retaining and gaining new partners; hiring an art consultant to take Art of Black Miami to the next level; partnering with Convention Sales on prospecting, servicing and closing business including the National Association of Hispanic Journalists; creating a department monthly newsletter to showcase department highlights and heritage community activities; coordinating a press trip for Art of Black Miami; and working with some of our already established events to maximize the partnerships. Ms. Kinnard said that the goals for the Multicultural Tourism & Development Department for fiscal year 2018/2019 include expanding the tourism business development small business sessions; continuing to work with Partnership on retaining and attracting new partners; working on a two-year strategic plan for Art of Black Miami; increasing the readership of the department monthly newsletter; ensuring the multicultural footprint is on all the Miami Temptations programs; creating a signature speaker series event called Cafecito & Conversations that ties in topics of interest with multiculturalism; and continuing to support key cultural events for mutual benefit. 7. SPORTS & ENTERTAINMENT TOURISM Mr. Jose Sotolongo, Director of Sports & Entertainment Tourism, said that the key accomplishments for the Sports Tourism department in 2017/2018 included working on the World Cup Bid to position Miami as one of 17 candidate host cities in the United States for the 2026 World Cup that was awarded to the United States, Canada and Mexico; expanding the sports-related convention business in Greater Miami by bringing and helping facilitate key industry conventions such as SoccerEx and esports Bar Miami; working in collaboration with the Miami Super Bowl Host Committee to ensure a successful Super Bowl 2020; and attending several of the largest and most important film industry events to promote the destination for film. Mr. Sotolongo said that the 8

9 Miami-Dade County film incentives program of $100,000 has already started to pay off with the filming of Snowbirds with Susan Sarandon as the lead actress for the movie. Mr. Sotolongo said that the 2018/2019 strategic priorities for Sports & Entertainment Tourism include expanding the growth in Greater Miami of sports-related conferences and conventions; developing bidding strategies to host televised sports and awards shows; producing a facilities guide that will incorporate all local parks and venues that can be used for sporting events with an emphasis on the Miami Beach Convention Center; and partnering with Film Florida and strengthening our relationships with the local film industry to increase the destination s viability as a top-notch film location. Mr. Orosz said that film and sports meetings are now an integral part of our community and added that there is an opportunity for growth in this area. 8. PRESIDENT S REPORT Mr. Talbert said that it was on July 25, 2018 that the City of Miami Beach Commission voted unanimously to include on the November 6, 2018 ballot a referendum on the lease of city property for the Convention Center Headquarter Hotel which will be connected to the Miami Beach Convention Center and have 800 rooms. Mr. Talbert said it has been approximately sixteen years since the Bureau, as well as other stakeholders, have been advocating for a headquarter hotel despite the naysayers. Mr. Talbert said that it was a team and industry backed effort to finally get the referendum on the ballot. Mr. Talbert publicly thanked everyone for their support of the convention center headquarter hotel. Mr. Talbert said that in addition to the headquarter hotel referendum, the residents of the City of Miami Beach have several ballot items that will decide the city s future including $439 million in general obligation bonds to fund public safety, infrastructure and park projects; allocation of the proceeds from the headquarter hotel; and create an inspector general s office. Mr. Talbert said that the residents of the City of Miami have to decide on whether or not to approve Miami Freedom Park, a soccer stadium and other entertainment facilities that will be built on the current site of the Melreese Country Club. Mr. Talbert said that he feels good about the upcoming election especially since 59% of the residents in the City of Miami on Tuesday, August 28, 2018 voted in favor of building a hotel in Jungle Island. Mr. Talbert congratulated Ms. Ibis Romero for being the newest board member of the U.S. Travel Association. Mr. Talbert also announced that Ms. Ginny Gutierrez, GMCVB Director of Community Relations, is retiring. Ms. Gutierrez said that it is difficult for her to walk away but said she would like to spend more time with her family. Ms. Gutierrez thanked everyone for their support throughout the years. City of Miami Beach Commissioner Mark Samuelian said that we finally have a new and reimagined Miami Beach Convention Center. However, he added that the work is never done because now the focus needs to be on the November 6, 2018 election that has several ballot items that are game changers for the City of Miami Beach. He said that the entire City of Miami Beach Commission is all hands on deck. Commissioner Samuelian said VOTE YES to Miami Beach! There being no other matters at hand the Board of Directors meeting was adjourned at 6:06 p.m. 9