INDUSTRY BAROMETER THROUGH DECEMBER 2014

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1 Lead an efficient, high-performing organization July December 2014 source: travel portland ORGANIZATIONAL PERFORMANCE To increase organizational efficiency, Travel Portland has focused on continuously improving its internal systems, including payroll processing, accounting and IT. Additionally, Tourism Improvement District (TID) revenue has increased 12.9% year over year, and transient lodging tax revenue has increased 16.7% in the same time frame. INDUSTRY BAROMETER THROUGH DECEMBER 2014 KEY REVENUE STREAMS 4.3% +16.7% +12.9% 3.4% P 3,548,197 3,702,395 $2,424,811 $2,829,782 $4,776,684 $5,384, % 76.7% DEMAND Transient Lodging Tax (TLT) TID OCCUPANCY 12 12

2 INDUSTRY BAROMETER THROUGH DECEMBER ,291,149 January-DECEMBER 2014 source: Dean Runyan associates IA EUROPE CANADA ASIA I had a great time and just wanted to say thanks a bunch and you did your job I plan to come back! P and -Meeting %change supplier/conference attendee Deplaned passengers: domestic 7,291,149 2,936, % Travel Portland sales staff: Excellent (4/4) Deplaned passengers: int l 231,913 86, % TABLE Total deplaned OF CONTENTS passengers 7,523,062 3,022,673 8% Travel Portland convention services staff: Excellent (4/4) Dear friends, Travel Portland Forecast housing and % services change (if utilized): Excellent (2/2) Welcome to the inaugural edition of Travel Portland s new quarterly and % change report, which we ll share with industry partners 70 and community stakeholders. In these pages, you ll find statistics, updates and insights that highlight our success in achieving Travel Portland collateral/promotional materials: our Excellent five key (4/4) objectives during the second quarter of fiscal year We ve included some data from beyond Q2 in order to provide 60 a fuller picture of our work during this period. Quality and user-friendliness of the Travel Portland: Excellent (3/4) This is our most important initiative. 50 In this section, you ll P impact for the and Portland % change region Pages 3-7 find Visits Dean Runyan Associates 1,967,598 2,369,670% AD VALUE estimates of the total economic Influence the long-term development Incremental visitor spending NA of the destination Goal 11.5 Million and its brand Pages 8-9 impact of 40the Portland visitor Actual 21.2 Million industry, plus overviews of Deliver a consistently remarkable customer experience Page 10 hotel performance, consumer Foster high-value relationships with our stakeholders Pages 11 advertising, 30convention bookings and international visitation. Lead an efficient, high-performing organization Page million in tax revenue We hope 20 you enjoy this new format as well as the information included. Thank you for your partnership, and for your help in making the visitor industry such a powerful economic engine for the Portland area. 10 Cheers, KEY MESSAGE RESONATION N 0 P and % change Visits 1,967,598 2,369, % Incremental visitor spending Jeff Miller NA 33,600 new jobs President & CEO VISITS P 1,967,598 2,369,670% COVERAGE E ANALYSIS ALY TAX REVENUE JOBS OVERALL ECONOMIC IMPACT VISITORS & SPENDING In 2014, the Portland metro area welcomed 8.7 million overnight visitors, who generated $4.6 billion in direct spending. Helping ease the state and local tax burden, area travelers generated $114.3 million in tax revenue, of which $98.7 million was state tax revenue. The travel industry supports 33,600 jobs in the Portland area, generating over $1 billion in employment earnings. INCREMENTAL VISITOR SPENDING 2 Next 3

3 Year to Date () Past Year to Date (P) January December 2014 source: STR HOTEL PERFORMANCE: CITY OF PORTLAND +4.3% +9.8% +13.5% +3.4% 3,548,197 3,702,395 $ $ $89.29 $ % 76.7% Demand Average Daily Rate RevPAR* Occupancy In December 2014, the Portland is Happening Now cuckoo clock the centerpiece of successful campaign kick-off events in Seattle and Vancouver, B.C. landed for a visit at Portland International Airport (PDX), where it will remain through March 31, To help spur off-season visits to the city, Travel Portland targets leisure travelers in the Pacific Northwest with an integrated advertising, social media and public relations campaign, Portland is Happening Now. The award-winning campaign is funded by the Tourism Improvement District (TID) and runs November 2014 March INITIAL RESULTS According to Smith Travel Research (STR), demand at TID hotels was up 7.1% in November and 6% in December vs. the same months last year. These results exceeded STR Analytics precampaign forecasts for November (2.7% increase) and December (-0.6% decline). OTHER MEASUREMENTS At the conclusion of the campaign, Travel Portland will also measure ad accountability (the winter campaign generated $78.4 million in incremental visitor spending, according to Longwoods International) and intent to travel (see p. 9 for results). The campaign was named the nation s Best Branding & Integrated Marketing Campaign by the U.S. Travel Association. PORTLAND INTERNATIONAL AIRPORT P +6% 7,725,691 7,291,149 Domestic deplaned passengers TRAVELPORTLAND.COM +8.8% 252, ,913 International deplaned passegers January-december 2014 SOURCE: Port of Portland Portland International Airport (PDX) is currently served by 15 international and domestic airlines, and welcomes over 15 million passengers annually. PDX recently introduced five new international direct flights, including seasonal routes to Reykjavik, Iceland; Guadalajara, Mexico; and Frankfurt, Germany. Additionally, the replacement of the iconic PDX airport carpet has garnered national media coverage. UNIQUE VISITORS ECONOMIC IMPACT 1,208,719 January-DECEMBER % 7,978,030 7,523,062 Total deplaned passengers For each of the past three years, visits to TravelPortland.com have increased more than 30% year over year. (Source: Google Analytics) According to a report by Destination Analysts, each unique visitor to the website generates $39.62 in incremental visitor spending. $47.8 MILLION *Revenue per Available Room 4 5

4 JULY-DECEMBER 2014 source: travel portland MEETINGS AND CONVENTIONS: OCC TARGETS In the first two quarters of fiscal year 14 15, the Oregon Convention Center (OCC) realized over $5.6 million in revenue from Travel Portland-booked business. Community economic impact return on investment (ROI) for all future bookings is at 34.7 to 1 (for every $1 invested, there s a $34.70 return). Seventeen new OCC conventions were booked during the second quarter. Yearto-date lead conversion is 41%, exceeding the annual goal of 35%. TOURISM SALES CITY OF PORTLAND GOALS 300 July-December 2014 source: travel portland As of the end of Q2, the tourism team has already exceeded the annual goal for estimated economic impact (EEI). Working in conjunction with TID hotel partners and independent research firms, the team has updated their data-gathering process to provide a more complete picture of the impact of their activities. This more detailed information will help shape and refine the team s goals moving forward. The team also launched a new partner grant program, designed to connect active business partners to international markets. 230 $23 MILLION $25.4 MILLION Estimated economic impact of minority bookings : $1.8 million ANNUAL GOAL Published itineraries Estimated economic impact Estimated economic impact YEAR TO DATE ANNUAL TARGET $8 MILLION $5.6 MILLION OCC revenue realized from Travel Portland bookings 2.8:1 3:1 ROI on future OCC business 7.9% 35% 41% Lead conversion 7.9% 30:1 34.7:1 Community economic impact GREATER PORTLAND: INTERNATIONAL VISITATION AND SPENDING source: VISA VUE Canada China Japan Germany, Austria, Switzerland UK Australia, New Zealand This information was gathered in 2013 study by Visa Vue, following the approach used by Travel Oregon since Estimates are based on and extrapolated from aggregate card usage data provided by Visa Vue Travel. They incorporate data from other independent research sources. Spending amounts and patterns are based on face-to-face Visa card transactions in Oregon. Transactions utilizing cash, prepaid, phone, internet, and other credit/debit cards are not included. Conversion factors are used to extrapolate arrivals, but spending per visitor is in its raw form (only Visa card purchases). Amounts are rounded, with associated rounding errors. All calculations are done on un-rounded data. Korea Scandinavia Mexico France Taiwan BeNeLux Italy Brazil India 2013 VISITATION 2013 VISITOR SPENDING 789,000 34,000 41,000 22,000 29,000 23,000 15,000 16,000 15,000 11,000 8,000 5,000 4,000 9,000 8,000 $150.5 million $25.3 million $17.8 million $5.7 million $9.5 million $6.4 million $5.3 million $4.5 million $3.8 million $3.8 million $3.6 million $1.3 million $1.2 million $3.9 million $4.8 million 6 7

5 182 Influence long-term development of the destination and its brand MEDIA PLACEMENT July-december 2014 source: travel portland For every $1 spent on PR, 1,235 people had the opportunity to read positive coverage about Portland 63% 854 M 55% Ad value $28.3M Influence the long-term development of the destination and its brand INTENT TO TRAVEL TO PORTLAND: Lives in the West MARCH 2014 MARCH % march 2014 source: MMGY Global 56% INTENT TO TRAVEL TO PORTLAND: National MARCH 2014 MARCH % 75% 60 26% Circulation 19% 18% 19% IA EUROPE CANADA ASIA P 57 COVERAGE 30 ANALYSIS At the end of Q2, the PR team had hosted 71 media and secured 392 clips. Circulation is on 20 pace to set a new record for Travel Portland, and ad value has already reached more than half of last year s total VISITS ,369,670% 0 P and % change Visits 1,967,598 2,369,670% Incremental visitor spending NA 1,967,598 Topics covered most by media in the second quarter COVERAGE ANALYSIS KEY MESSAGE RESONATION 19% 24% Extremely/ very likely COMMUNITY RELATIONS 18% 19% Somewhat likely Not very/ not at all likely 9% 12% Extremely/ very likely 11% 13% Somewhat likely Not very/ not at all likely Positive responses increased universally year over year, among both western and national respondents. Reflecting the geographical focus of our marketing campaign, the negative response in the west decreased by a considerable 7%, while remaining relatively flat nationally. Travel Portland launched the first in a series of multicultural videos on Nov. 18, 2014, at Say Hey, the quarterly event led by Partners in Diversity to honor new minority professionals relocating to Oregon and Southwest Washington. The videos showcase Travel Portland s ongoing commitment to representing diversity in all its forms through organizational activities. Travel Portland continues to engage with its Multicultural Advisory Council, an external stakeholder advisory committee that provides guidance to Travel Portland on diversity and inclusivity efforts. INCREMENTAL VISITOR SPENDING 8 Next 9

6 Deliver a consistently remarkable customer experience october-december 2014 source: travel portland 7,291,149 Foster high-value relationships with our stakeholders July-December 2014 source: travel Portland 182 IA EUROPE CANADA ASIA P 8 57 CONVENTION SERVICES P PERFORMANCE I had a great time and just wanted to say thanks a bunch and you did your job I plan to come back! and -Meeting %change supplier/conference attendee Deplaned passengers: Responses to a survey of planners who recently domestic 7,291,149 2,936,018 I had a great 7.9% time and just wanted to say thanks a conducted meetings in Portland were overwhelmingly Travel Portland sales staff: Excellent (4/4) bunch and you did your job I 3plan 4 to come back! positive, Deplaned with 100% passengers: of respondents int l giving 231,913 Excellent 86, % -Meeting supplier/conference attendee ratings Total to Travel deplaned Portland s passengers sales staff, 7,523,062 convention 3,022,673 8% services staff and housing services (if utilized). Travel Portland convention services staff: Excellent (4/4) Travel Portland Forecast housing and services % change (if utilized): and % change Excellent (2/2) 70 Travel Portland collateral/promotional materials: Excellent (4/4) AWARDS WON 60 Successful Meetings Pinnacle Award 17 consecutive years Quality and user-friendliness of the Travel Did you Portland: know? Excellent (3/4) M&C Gold 50 Service Award P and % The change Travel Portland Visitor Information Center 14 Visits consecutive years 1,967,598 2,369,670% serves 600,000 visitors a year. AD VALUE Incremental visitor spending NA Goal 11.5 Million 40 Actual 21.2 Million # of partners; diversity partners; space for partner events/details 30 TRAVELPORTLAND.COM 20 A new events calendar was introduced in October 2014, featuring enhanced usability and more comprehensive listings and generating more traffic. WAS THIS LEAD AN EFFICIENT, HIGH PERFORMING PAGE? HELPFUL ORGANIZATION Contextually 10relevant event listings are now featured throughout the site. KEY MESSAGE RESONATION P and % change % Visits 1,967,598 2,369,670% Incremental visitor spending NA 20% NOT HELPFUL At the same 0 time, the presentation of directory listings was refined so that all relevant results show on a single page with a single map, making resources easier to find. VISITS 1,967,598 2,369,670% COVERAGE ANALYSIS LEADS & REFERRALS SHARED P 350 CONVENTION SERVICES CONVENTION SALES PARTNER SUMMARY TOURISM 718 WEBSITE REFERRALS Travel Portland has nearly 0 business partners, ensuring a strong link between Travel Portland s customers and the brand and destination promise. Travel Portland requires an active constituency representing broad business involvement within the hospitality industry. Among partner businesses, 7% are minority-owned and 19% are womenowned. Partner business-to-business networking events and educational programs are held bimonthly. COMMUNITY RELATIONS In November, Travel Portland sponsored and took part in the Civility Summit 2.0, a collaborative community event and campaign led by the Downtown Public Safety Action Committee to create shared agreements on respectful behavior in public spaces. The event highlighted successful engagement with the Portland Police Bureau, homeless youth, residents, nonprofits and the Portland business community. Attendees discussed the steps they would take personally to improve the city s public spaces. 540,267 Traffic from TravelPortland.com to external websites INCREMENTAL VISITOR SPENDING 10 Next 11

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