Minutes of the Executive Committee Meeting --- April 23, Brickell Avenue, Suite 2700 Miami, Florida U.S.A.

Transcription

1 Minutes of the Executive Committee Meeting --- April 23, Brickell Avenue, Suite 2700 Miami, Florida U.S.A. Attendance Report Executive Committee Members Attending Bruce Orosz, Chairman T. Willard Fair (via phone) Elizabeth Hicks Eric Jellson Gene Prescott Carole Ann Taylor (via phone) Alex Tonarelli (via phone) Legal Counsel Jaret Davis (via phone) GMCVB Staff Attending William D. Talbert, III, CDME Rolando Aedo, CDME Ginny Gutierrez Charlie Haz Connie Kinnard Ita Moriarty Dorcas Piegari Alvin West, CDME Unable to Attend Dan Gelber, Mayor City of Miami Beach Carlos Gimenez, Mayor Miami-Dade County Steven Haas Jimmy Morales, City Manager City of Miami Beach Maria Sastre Dawn White CALL TO ORDER The Greater Miami Convention & Visitors Bureau Executive Committee Meeting was called to order at 4:03 p.m. by Ms. Elizabeth Hicks. 1. APPROVAL OF MINUTES Ms. Elizabeth Hicks made a motion for approval of the February 26, 2018 minutes; was seconded by Mr. Gene Prescott; and passed unanimously. 2. CHAIRMAN S REPORT REPORTS Mr. Bruce Orosz said that in March Mr. Talbert and he were part of the delegation that participated in the Miami-Dade County Economic Development & International Trade Mission to China along with Miami-Dade County Mayor Carlos Gimenez and other community stakeholders. Mr. Orosz said that the mission was a success where meetings were held with numerous Chinese business leaders in Beijing, Qingdao and Shanghai. Mr. Orosz said that they also met with the Chairman of the China Film Commission and China Film, LLC in Beijing. Mr. Orosz said that the film meetings 1

2 that took place were very positive and that Miami is definitely on their radar. Mr. Talbert said that Mr. Orosz and he were also able to participate in the Brand USA China Mission in Beijing that, coincidentally, was taking place at the same time as the Miami-Dade Mission. Mr. Talbert said that thanks to business partnerships and Bureau connections, Miami-Dade County Mayor Carlos Gimenez was able to meet with a business leader from the Alibaba Group. 3. CONVENTION SALES Ms. Ita Moriarty reported that for February 2018 we had 178 sales leads, 70 bookings and 40,774 room nights with an economic impact of $16,481,279. Ms. Moriarty said that the most significant booking in February 2018 was Seatrade Cruise Global 2019 at the new and improved Miami Beach Convention Center from April 4-13, She added that Sea Trade was held at the Ft. Lauderdale Convention Center while the Miami Beach Convention Center was under construction. Ms. Moriarty said that activities for February 2018 included Connect Diversity in Portland, OR; AMC Institute s Annual Winter Meeting in Vancouver, Canada; Destination Showcase in Washington, DC; XSITE Tallahassee in Tallahassee, FL where we networked with over 100 planners; and Connect Financial which is a new show held in Orlando, FL. Ms. Moriarty reported that for March 2018 we had 165 sales leads, 67 bookings and 41,112 room nights with an economic impact of $25,736,815. Ms. Moriarty said that the most significant booking in March 2018 was the American Academy of Periodontology at the new and improved Miami Beach Convention Center from November 1-8, She said that the economic impact for this citywide will be over $6,000,000. Ms. Moriarty said that activities for March 2018 included Lamont Associate Conference in Dallas, TX which was the first time we were invited to attend; Experient Envision in Detroit, MI which is a third party agency that books hundreds of meetings; Nashville Sales Calls in Nashville, TN; and CBI Pharma Forum in Philadelphia, PA with 700 planners and suppliers that resulted in 20 leads. Ms. Moriarty said that site visits at the Miami Beach Convention Center for February and March 2018 included a pre-planning trip by the American Health Information Management Association (AHIMA) as they prepare for the 2018 AHIMA Convention & Exhibit from September 23-26, 2018; and site inspections by The Society of Thoracic Surgeons and Seatrade Cruise Global for their respective conventions in 2022 and Ms. Moriarty added that these organizations will not commit to a particular venue until they have guaranteed room blocks. She added that it has been difficult to conduct site inspections at the Miami Beach Convention Center because there is limited access due to the ongoing renovation. 4. MARKETING & TOURISM Mr. Eric Jellson, GMCVB Chair of the Marketing & Tourism Committee, said that first quarter hotel business was great. He said that although Hurricane Irma should be in everyone s distant memory, it will be on everyone s mind when they start planning their summer vacations. He said that compared to last year, currently hotel business is in good footing on both sides of the Bay. Mr. Aedo asked if we should be more mindful of the communication strategy post Hurricane Irma if it is impacting summer business. Ms. Moriarty said that Hurricane Irma did affect group business for the summer months of July, August and September but that a bump is expected for transient 2

3 business as summer approaches. Mr. Talbert said that the Annual Hotel Hurricane Preparedness Meeting will be held on Friday, May 24, 2018 at the W South Beach Hotel. Mr. Jellson said that street construction in Downtown Miami continues to be an issue as well the area surrounding the Miami Beach Convention Center. Mr. West said that the Florida Department of Transportation (FDOT) has promised that the roads in Downtown Miami will be finished prior to the LinkedIn Citywide which will be held on July 18, Mr. Aedo reported on the market indicators for February 2018 including a 6.6% increase for Overnight Visitors; a 6.1% increase for MIA Arrivals; and a 1.3% increase for PortMiami. He said that from March 2017 to February 2018, Overnight Visitors increased by 1.9%; MIA Arrivals increased by.1%; and PortMiami increased by 1.9%. He added that February 2018 was a really strong month. Mr. Aedo said that for March 2018 we had a 2.6% increase in Occupancy; 15.2% increase in Room Rate; and 18.2% increase in Rev Par. Mr. Aedo said that in Miami Beach, Room Rate increased by 21.4% and Rev Par increased by 26.1% for March He said that Rooms Available is a negative number because there are a few hotels that have not opened after Hurricane Irma such as the Deauville, Shelbourne and Ritz Carlton South Beach. He said that in Downtown Miami, Room Rate increased by 8.7% and Rev Par increased by 12.1%. He said that Rooms Available has stabilized in the Downtown Miami area which has allowed Room Rate to increase. Mr. Aedo said that even Airbnb is experiencing growth. Mr. Aedo said that there is no question that growth in Occupancy, Room Rate and Rev Par can be attributed in part by the launch of the Bureau s Hotels First and Miami Now initiatives following Hurricane Irma. Mr. Aedo gave a recap of the new air service coming to Miami International Airport. He said that American Airlines is expanding significantly by restoring three flights per week from Caracas, Venezuela to Miami starting December 2018; by adding four flights per week from Cordoba, Argentina to Miami starting April 2019; and adding daily service from Georgetown, Guyana and Pereira, Colombia starting December Mr. Aedo said that Norwegian Cruise Line (NCL) is getting a new cruise terminal at PortMiami that will host the Norwegian Encore when it arrives Miami in November Mr. Talbert said that the NCL Cruise Terminal is a $220,000,000 investment. Mr. Talbert said that the NCL Terminal is located next to the new Royal Caribbean Cruise Terminal which is costing $250,000,000 to build. Mr. Talbert said you do not see these types of terminals anywhere else in the world. He added that Miami-Dade County signed a 60-year contract with the cruise lines because these long-term agreements is the only way cruise lines will agree to make a huge investment. Mr. Aedo reported on the highlights for Travel Industry Sales in the United States and Canada for March and April 2018 which included Seatrade Cruise Global in Ft. Lauderdale, FL; CCRA Trade Show in San Francisco, CA; Travel Impressions Trade Show in Dallas, TX; and Travel & Vacation Show in Ottawa, Canada. He said travel agents are still a critical part of travel industry sales especially as it relates to cruise lines. He added that the highlights for Travel Industry Sales in Latin America for the same time period included Leisure Express Destination Workshop in Buenos Aires, Argentina; Braztoa Workshop in Sao Paulo, Brazil; AVIATUR Destination Workshop in Bogota, Colombia; and World Travel Market Latin America in Sao Paulo, Brazil. Mr. Aedo said that from 3

4 February to April 2018, the Travel Industry Sales Team hosted 247 professionals from around the world to familiarization tours in Miami. Mr. Aedo reported on the highlights of Advertising and Digital Marketing from February to March 2018 which included creating incremental buzz about the new and improved Miami Beach Convention Center; using social media strategically to support overall programs as well as specific events such as The Miami Open; working on the launch of our brand new website this summer; and shooting 90-second videos showcasing experiences throughout Miami for the launch of the second phase of the Found In Miami campaign. Mr. Aedo reported on the highlights of Media Relations & Promotions from February to March 2018 which included ANATO Tradeshow in Bogota, Colombia and ITB Tradeshow in Berlin, Germany. Mr. Talbert added that Colombia is our number international market in terms of spend. Mr. Aedo said that among the press that visited Miami was Passport Magazine that published an article on March 1, 2018 dubbed What s New in Miami, Florida with a circulation of 164,000 and ad value of $59,230. Mr. Aedo said that these articles are a result of media visits from around the world. Mr. Aedo reported on the highlights for Cultural Tourism from February to March 2018 which included attending Art Basel Hong Kong, Art Wynwood and the Coconut Grove Art Festival. Mr. Aedo also reported on the highlights of LGBT Marketing for the same time period which included Winter Party 25 th Edition Cross Market Press Tour and Gay Pride in both Ft. Lauderdale and Miami. Mr. Aedo said that Miami Museums Month starts on May 1, 2018 and will be kicked off with the GMCVB State of the Travel & Tourism Industry Breakfast at the Phillip and Patricia Frost Museum of Science. He added that the 2018 Annual GMCVB Partner Marketing Retreat will be held on Thursday, June 7, 2018 at the Miami Airport Convention Center. 5. FINANCE & ADMINISTRATION Mr. Elizabeth Hicks, GMCVB Finance Committee Chair, said that the last GMCVB Finance Committee Meeting was held on Wednesday, April 18, She said the meeting agenda included a review of the Bureau s investment portfolio and a review of the financial statements for the period ended March 31, Ms. Hicks said that for the six months ended March 31, 2018 we had an operating surplus of $6,690,000 versus a budget of $3,780,000 which is $2,910,000 ahead of budget. She said we are ahead of budget as a result of an increase in revenue of $1,572,000 and a decrease of marketing expenses of $1,443,000. Ms. Hicks said that for the six months ended March 31, 2018, net revenue was $19,794,000 versus a budget of $18,452,000 which is $1,342,000 ahead of budget. She said that we are ahead of budget primarily because the Tourism Development Tax was ahead of budget by $1,161,000 and of that amount we estimate that Airbnb revenue was $600,000; the Average Room Rate was $ or 6.8% above budget; and Occupancy Rate was 79.5% or 7.9% above budget. 4

5 Mr. West said that first quarter of the calendar year was outstanding which offset the effects of Hurricane Irma at the beginning of the fiscal year. Ms. Hicks said that we were behind in F&B for the first quarter of the fiscal year because a lot of the hotel rooms occupied by locals during Hurricane Irma did not generate F&B. She added that the Miami-Dade 2% F&B Tax did recuperate and was ahead of budget by 1.7% for the six months ended March 31, Ms. Hicks said that marketing expenses were under budget by $1,443,000 primarily due to timing differences. Mr. Aedo said that the timing differences can be attributed to the delay in the payment of the Brand USA cooperative partnership of $350,000; postponement in the production of the Found In Miami photo shoot of approximately $500,000; delay in the investment of the Bureau s website development; and deferment in payment of air service incentives. Ms. Hicks said that since we are ahead of budget due to an increase in revenues, there needs to be a plan to reinvest the additional revenue in marketing programs. Mr. West said that the GMCVB Management Team has a meeting the first six month of the fiscal year to review underspending and overspending and be able to forecast the remainder of the fiscal year. Ms. Hicks said that over the years, the GMCVB Management Team has gained the respect of the GMCVB Finance Committee because they manage to the bottom line. Mr. Talbert said that last September, the concerns were the recurrence of the Zika virus; the effects of Hurricane Irma after the storm; and an increase in hotel inventory all of which led to investment in the Hotels First and Miami Now marketing programs. He said that this was essentially a reinvestment in marketing programs from the Airbnb revenues that had started to come in since May. Ms. Hicks said that the GMCVB Management Team also manages its administrative expenses very tightly having recently saved the company over $100,000 by renegotiating its health insurance plan. Mr. Talbert reiterated that close attention is paid to revenues as well as expenses. Mr. Talbert added that while there may be additional revenue, this revenue is used to incentivize future host city events such as Super Bowl 2020, Wrestlemania 2020, etc. Ms. Hicks said that the Bureau s financial condition remains very strong. She said the Business Recovery Fund balance for the six months ended March 31, 2018 was $12,030,364 versus last year which was $10,836,584. She added that the increase in the Business Recovery Fund can be attributed to good investment results. She said the GMCVB Finance Committee is very happy with the portfolio mix and managers. 6. MULTICULTURAL TOURISM & DEVELOPMENT Ms. Carole Ann Taylor, GMCVB Chair of Multicultural Tourism & Development, said that the Multicultural Tourism Committee will be reconstituted and asked if anyone from the GMCVB Executive Committee would like to serve. Ms. Taylor said that meetings will be held on a quarterly basis. Ms. Connie Kinnard, Vice President of Multicultural Tourism & Development, highlighted the events that occurred in February and March 2018 including Black History Month Community Tour with stops at the Black Police Precinct Museum, Little Haiti Cultural Complex and African Heritage Cultural Arts Center; the 20 th Annual Carnaval Miami on the Mile; and the 41 st Annual Calle Ocho Festival which included a croqueta-eating contest in which Mr. Talbert was a participant. Ms. Kinnard said that the main event in March was Jazz In The Gardens which in addition to the concert included a kick-off press conference; a Film, Music, Art & Culture (FMAC) Conference; and 5

6 a Women s Impact Luncheon. She said that the event is expanding so that visitors can extend their stay in Greater Miami. Ms. Kinnard said that we are a presenting sponsor of Jazz In The Gardens from a marketing and promotions standpoint. Ms. Kinnard said that the Multicultural Tourism & Development Department also participated in the College Hospitality Institute Job Readiness training event and the Overtown Work Readiness Fair both of which support education and training in our multicultural communities. Ms. Kinnard said that a meeting was held with Mr. Jeff Friday, Founder of the American Black Film Festival, regarding building a future partnership since they do want to continue to host the festival in Greater Miami. Mr. Orosz added that the American Black Film Festival will take place from June 14-17, 2018 with the Loews Miami Beach Hotel chosen as the headquarter hotel. Ms. Taylor said that she will be traveling to Harlem with the Overtown Community Redevelopment Agency (CRA) in hopes of creating a Harlem of the South in Overtown. 7. SPORTS TOURISM In the absence of Mr. Jose Sotolongo, Director of Sports Tourism, Mr. Rolando Aedo said that Miami Sports & Wellness Month starts April Mr. Aedo reported on the highlights for February and March 2018 including the Toronto Golf and Travel Show in Toronto, Canada; the Houston Livestock Show & Rodeo in Houston, Texas with Miami-Dade County Commissioner Javier Souto; SoccerEx Site Visit to Greater Miami; the 305 Half Marathon & 5K in Miami Beach; and the Miami Open Tennis Tournament. Mr. Aedo said that the Miami Open will be held at Hard Rock Stadium next year and it looks like the tournament will keep its room blocks in Downtown Miami. Mr. Orosz said that Mr. Sotolongo had a productive business trip to Bangkok, Thailand where he attended SportAccord. Mr. Orosz said that another classic soccer tournament will be coming to Miami in July at the Hard Rock Stadium featuring Manchester City playing FC Bayen Munich and Manchester United playing Real Madrid. 8. PRESIDENT S REPORT Mr. Talbert said that Florida House Bill 3 (HB-3) did not pass which would have made the Beacon Council and the Bureau public agencies. He added that for the upcoming legislative session, the new Florida Speaker of the House is Representative Jose Oliva and the new President of the Senate is Senator Bill Galvano who has an office at The Biltmore Hotel. Mr. Talbert said that we are starting to build a relationship with these two members of the Florida Legislature so that we can be part of the conversation when these issues arise. There being no other business at hand, the meeting was adjourned at 5:42 p.m. 6