Attachment 1 Walnut Creek Tourism Business Improvement District Assessment Report for 2018-2019 February 22, 2018
Table of Contents 1. Mission Statement and Overview. Page 1 2. District Boundary & Participants... Page 2 3. Fee Structure... Page 2 4. 2017-2018 Accomplishments Page 3 5. CVB Income/Expenses.. Page 12 6. Fiscal Year 2018 2019 Page 13 7. Conclusion. Page 16
Mission Statement and Overview The Walnut Creek CVB promotes, elevates, and markets the Walnut Creek hotels. The mission of the CVB is to attract overnight visitors to the area. Additionally, the CVB encourages higher room rate opportunities for our hotels. Funds from the CVB support a Walnut Creek Convention & Visitors Bureau, which is the marketing organization to execute the marketing strategies. There is a unique opportunity to bring additional room nights to the Walnut Creek hotels given the momentum and development in the City, the central location of the region within the Bay Area, access to BART transit, the incredible local scenery, and a new awareness of the East Bay on a national level. Walnut Creek has become the Jewel of the East Bay as it is now seen as the leading destination within the 680 corridor with fantastic dining, shopping, and natural scenery. An upscale yet comfortable location - which is ideal for overnight visits. A successful CVB is a strong economic catalyst because it attracts new dollars to the community from outside the area. This new spending generates more money for the hotels, which results in increased Transient Occupancy Taxes (TOT) going to the City and increased sales taxes generated at restaurants and local businesses. Recent studies from colleague organizations (SF Travel, Visit Oakland) also suggest that overnight hotel guests contribute significantly to the local economy, and these numbers may total approximately $40M per year for Walnut Creek restaurants and retail establishments. Since July 2015 the CVB has been actively working to reposition the area towards new group/meeting/conference opportunities for the six hotels in the CVB. The goal is to find new and different opportunities, and to do so, we launched new partnerships, new marketing efforts, new advertising campaigns, and new networking events. Walnut Creek is being recognized in the hospitality industry like never before. These initiatives lead toward business opportunities for the hotels, both in the near and long term. The CVB aligns closely with the Walnut Creek Chamber of Commerce & Visitors Bureau. The Chamber shares the community-wide vision of the Bureau and this partnership capitalizes on many of the Chamber s strengths. The Chamber of Commerce is an international brand that is quickly recognized by travelers. In addition, the Chamber has built a powerful web presence, established an effective community calendar, successfully developed many regional events and offers a very strong infrastructure capable of professionally managing this growing activity. The CVB also works in partnership with other Walnut Creek organizations towards promotion strategies which may result in new, effective marketing and promotion and new room night opportunities for the hotels of Walnut Creek. 1
District Boundary & Participants The boundary for the Tourism Business Improvement District (TBID) is the Walnut Creek City limit and the two hotels located in unincorporated Walnut Creek. HOTEL CONTACTS Hotel Phone Fax Diablo Mountain Inn 2079 Mt. Diablo Blvd. Walnut Creek, CA 94596 937-5050 947-5431 Diablo Mountain Inn alternate contact 831-649-0908 831-649-4822 Holiday Inn Express Walnut Creek 2730 N. Main St. 932-3332 256-7672 Walnut Creek, CA 94597 Motel 6 Walnut Creek 2389 N. Main St. Walnut Creek, CA 94596 935-4010 906-0860 Walnut Creek Marriott 2355 N. Main Street Walnut Creek, CA 94596 934-2000 932-1186 Embassy Suites 1345 Treat Blvd. Walnut Creek, CA 94597 934-2500 256-7233 Renaissance Club Sport 2805 Jones Road 938-8700 938-8707 Walnut Creek, CA 94597 Marriott Residence Inn (currently under construction estimated near Fall 2018) 2050 North. Calif. Blvd. Walnut Creek, CA 94596 Developer contact phone: 925-216-4313 Fee Structure Current: The TBID assessment is based on a rate of $2.00 per room, per day of occupancy, for properties with 75 or more sleeping rooms, and a rate of $1.50 per room, per day of occupancy, for properties with fewer than 75 sleeping rooms. Proposed: The Walnut Creek CVB proposes to change the funding of the TBID to a percentage system which will keep current with national trends, allow us to have similar funding plans as nearby organizations, and generate additional marketing and business development opportunities for the Walnut Creek hotels. The proposed new TBID assessment will be 3% of the sleeping room rate for all of the Walnut Creek CVB hotels regardless of the number of sleeping rooms. 2
2017-2018 The following are highlights of year to date and projected accomplishments for fiscal year: July 1, 2017 June 30, 2018. Oakland Airport Advertising Advertising The CVB continued to partner with Walnut Creek Downtown on a display banner advertisement (through 2017) in the Oakland International Airport (OAK) baggage claim area. It is estimated that over 5 million people are traveling into Oakland and potentially seeing this Walnut Creek marketing. This campaign called attention to downtown and the idea of meeting/lodging in Walnut Creek through a presentation that featured the marketing line Walnut Creek the Jewel of the East Bay. A new banner with revised artwork was prepared during the summer of 2017. 3
Bay Bridge Billboard In January, the CVB had the opportunity to showcase Walnut Creek Jewel of the East Bay to inbound East Bay visitors from the Bay Bridge, via a digital bulletin board. It was estimated that the artwork received ~ 750,000 impressions per week. (Image courtesy of Outfront Media.) BART Marketing During the summer and fall (2017), the CVB coordinated a marketing campaign in various BART stations, announcing that The Bay Area Meets in Walnut Creek. The referral campaign was seeking local awareness of Walnut Creek as an option for meetings/lodging, and asked viewers to consider the Jewel of the East Bay for their company s meetings and events. 4
Smart Meetings Magazine Smart Meetings is a major hospitality/events industry organization, which offers networking and business exchange events in addition to a significant web/online presence - and a magazine for the industry. The circulation includes 44,000 for print (focused towards meeting/hospitality professionals) and 55,000 for digital information. The CVB has partnered with Smart Meetings towards attending networking/business appointment events and advertising in the magazine. These events have been very helpful in terms of introducing Walnut Creek to event planners, and receiving leads - and advertising has helped to reinforce the idea of meeting in Walnut Creek. Connect Magazines Connect offers events and industry publications within many different areas of the events industry including Corporate, Association, and Sports. Connect estimates a total planner audience of 123,000. The CVB has been able to both advertise and receive an article (Spring 2017) via one of their magazines regarding Walnut Creek. Last spring, Connect highlighted the current/future opportunities in the area with an article titled, Walnut Creek Emerges as a New Sports Destination (by Kelsey Ogletree). San Francisco Business Times Walnut Creek CVB/Walnut Creek Hotel marketing was added to the recent (August 2017) Walnut Creek Report section of the San Francisco Business Times. SportStars Magazine SportStars a sports magazine highlighting youth sporting events in the East Bay and advertisements have been placed in the recent past including placement in the basketball tournament issue held in December that brought in approximately 128 teams and 2,200 visitors. This advertising campaign provides an opportunity to promote Walnut Creek lodging to various sports groups that may use the Ultimate Fieldhouse in Walnut Creek or other nearby venues. CVB Advertisement 5
Trade Shows and Events Smart Meetings Events Smart Meetings events are an effective and efficient opportunity to meet with many meeting/event planners in a brief amount of time, with their speed networking style of appointments and exceptional networking events. These events are important opportunities for face-to-face time with meeting/event planners, and an effective way to communicate why meeting in Walnut Creek is an excellent option. Connect Meetings Connect offers appointment-based events which provide regional networking opportunities, and a national event. The Connect team works to pair destinations/hotels with meeting planners (for brief meetings) based on business needs and offerings of the venue/region often resulting in a great new potential business connection and/or a new lead for the area. During the 2017 Connect Marketplace in New Orleans, the CVB partnered with Visit Oakland and Visit Berkeley to prepare a Find Your Way to the East Bay event with meeting planners (image artwork via Visit Oakland). 6
Destination California A multi-day appointment-based program involving meetings and networking, the Destination California event will be in San Diego this spring (in Los Angeles last year). It is another opportunity to meet with event planners and introduce Walnut Creek as conference destination. All Things Meetings All Things Meetings is a professional resource for Northern California meeting planners to assist them in every aspect of meeting planning. Finding an event venue; assisting with audio visual production; mobile event applications; transportation and more are among the services provided by All Things Meetings. It is recognized as the go to place for planners who just don t have the time to do all the research. All Things Meetings often presents networking/trade show events in San Francisco and the South Bay. Partially encouraged by the CVB, All Things Meetings held their first Contra Costa County event in San Ramon (during November 2016). This was an opportunity to introduce meeting/event planners to the 680 corridor of the East Bay. IMEX America IMEX America is a major exhibition and event for incentive travel, meetings & events. IMEX is a great networking opportunity with the worldwide meetings industry. There is an estimated attendance of 10,000+ hospitality professionals. 7
CalSAE Seasonal Spectacular A major California hospitality industry event in Sacramento each December, Seasonal Spectacular is a trade show which offers an opportunity to introduce the Walnut Creek hotels to many association/government event planners and meeting professionals. Meeting Professionals International (MPI) Northern California One of the leading meetings industry trade shows and events on the West Coast, with an attendance of approximately 1200 guests MPI Northern California is a great opportunity to network within the industry, seek business and referrals, and promote the destination. The MPI Northern California ACE trade show is scheduled for February 27, 2018. Networking Networking groups typically bring hospitality guests to visit, discuss Walnut Creek, share ideas, learn about venues, and consider referral opportunities. In 2017, Walnut Creek was once again selected by MPINCC (Meeting Professionals International Northern California chapter) as the location for one of their popular Nothing but Networking events. These events bring meetings/event professionals to the area from throughout the Bay Area, and help promote the city, the region, and potential future conference/meeting/event business in Walnut Creek. Further, the significant amount of marketing for the event by MPINCC within the meetings/events industry provided an exceptional opportunity for promotion of the Jewel of the East Bay. 8
MPI Northern California Nothing but Networking at the Renaissance ClubSport Walnut Creek (Sept. 2017) Partnerships There is great value in building partnerships to promote Walnut Creek. To help build and strengthen strategic community partnerships with meeting planners the CVB joined the following professional organizations: CVENT, New Generation Sales, HelmsBricoe, Smart Meetings, San Francisco Travel, MPI, CalSAE, PCMA Northern California, and others. Additionally, the CVB partnered with local events such as Walnut Creek On Ice, the Holiday Stroll, Forma Gym Turkey Trot, and Walnut Creek Restaurant Week. Through these partnerships we attempted to both encourage visitors to Walnut Creek in general and encourage local referrals for hotel room nights. Additionally, the California Downtown Association has selected Walnut Creek as their 2018 conference location, which is scheduled for March 13-15 of this year. The CVB will help with conference plans and the CVB will be a sponsor of the event. 9
Website/Social Media Website VisitWalnutCreek.org was launched in the fall of 2015. This updated website gives the CVB a fresh, clean look and is a complement to the new logo which is consistent with the new direction of the CVB. The site now incorporates a meeting planner focus making it easy for a planner to get critical information on Walnut Creek as a meeting destination. Receiving a proposal is easy with the new RFP page. The website is also responsive meaning it automatically adjusts to the medium being used weather it s a laptop, desktop, or smart phone. Social Media Social media is an important aspect of calling attention to the Walnut Creek hotels (and Walnut Creek in general) within the meetings/events and business travel community. Facebook - @GoWalnutCreek and Twitter - @GoWalnutCreek pages have been revamped, and an Instagram account, @MeetInWalnutCreek, has been added. Additionally, the #MeetInWalnutCreek hashtag has been established calling attention to meetings and events in Walnut Creek. It also highlights the fact that Walnut Creek is central within the Bay Area near San Francisco and between the Napa and Livermore wine regions. The @MeetInWalnutCreek Instagram account has grown to more than 1700 followers as of February 2018. The account promotes the uniqueness and energy of Walnut Creek, and calls attention to Walnut Creek as a new frontier for meetings/events/conferences in the San Francisco Bay Area. 10
Recent Results Lead Volume and Rankings Lead Volume for Hotels Marketing, advertising, sales, networking, and partnership efforts have led to significant increases in viable group sales leads for the Walnut Creek CVB hotels. More leads provide more opportunities for the hotels to consider/select, which eventually provides more bookings and revenue for the hotels of Walnut Creek. Through January 2018, the CVB has received or identified leads totaling over 15,000 room nights and an estimated $2.7M of group guestroom revenue opportunity for the hotels. The hotels then have the opportunity to further review or pursue these lead opportunities with the help of the CVB. Walnut Creek Hotels in 2017 - and East Bay Competitors The CVB receives data regarding hotel metrics for our city and other nearby cities. We define the East Bay competitive set as Concord, San Ramon, Oakland (and Walnut Creek). During the 2017 calendar year, the Walnut Creek hotels (aggregate data for all 6 hotels) achieved success both vs. last year s numbers and vs. the East Bay competitive set. The Walnut Creek hotels gained in ADR (Average Daily Rate), Occupancy, and RevPAR (Revenue Per Available Room) vs. their 2016 numbers. Further, the hotels in Walnut Creek continue to lead the East Bay competitive set in the key metric of RevPAR a number which combines the hotel s average room rate and the hotel s occupancy percentage. Also of note is that the Walnut Creek hotels increased their RevPAR lead vs. the next closest competitor in 2017. The margin of the RevPAR lead has nearly doubled since the conclusion of 2016. The CVB s marketing (and work to position the region as the Jewel of the East Bay ) at least partially helps and encourages strong metrics. Additionally, during this past year, one of the hotel managers sent a nice comment via email, and we appreciate working with the hotel teams. Thank you and your crew for all you do! The difference in occupancy in the last 3 years has been SIGNIFICANT! Thank you to our hotel partners! It is wonderful to work together towards new initiatives for the continued and future success of Walnut Creek hospitality. 11
CVB Income/Expenses 2017-2018 Budget Projected July 1, 2017 June 30, 2018 YE Projected July 1, 2018 June 30, 2019 Budget* Income $582,929 $589,104 $1,014,431 Prior Year Surplus Carryover $317,968 Total Income $1,332.399 Expenses Advertising Bay Bridge $8,400 $12,000 Internet (Digital) $5,000 0 $34,000 Magazine $27,750 $14,900 $41,500 Newsprint 0 $3,899 $7,500 Oakland Airport $15,500 $4,293 $24,000 Photography $3,000 $0 $10,000 Public Relations $36,000 $9,400 $63,600 Radio $1,500 $750 $4,000 Trade Faires $26,000 $31,316 $45,000 TV/Digital Display/BART $15,000 $11,977 $14,000 Video $9,500 $5,000 $25,000 Chamber Support $107,947 $117,822 $166,920 City Admin Fee $11,495 $11,782 $20,289 Consulting/Audit $12,500 $2,000 $17,500 Legal 0 0 0 Marketing/Outreach/CVB Team $234,000 $219,338 $264,000 Networking Group $6,000 $2,000 $8,000 Outside Services/Promotion $19,000 $13,509 $65,000 Room Block Allocation $0 $0 $7,050 Printing & Supplies $5,000 $3,051 $14,500 Sponsorships/Memberships $61,000 $60,869 $122,500 Website/Social Media/Comp $3,750 $3,250 $14,500 Total Expenses $599,941 $523,556 $980,859 Net Year-End Surplus $351,540 *anticipating a funding change to 3% beginning in Jan. 2019 12
Fiscal Year 2018 2019 During the fiscal year of 2018-2019, we will call attention to Walnut Creek in the hospitality/event planning/business travel industries by marketing Walnut Creek as the Jewel of the East Bay an upscale, centrally-located, regional destination which is emerging in the hospitality industry and an excellent location for executive meetings, corporate travel, and/or small association conferences. The proposed funding change to a 3% arrangement will allow the CVB to prepare even more marketing and opportunities for the hotels, as we focus on the mission of bringing additional overnight visitors to the area (and encouraging increased room rates at the hotels). Additional funds will help to supplement hotel marketing efforts, and we will be able to pursue new markets (business travel, lodging during international visits). Marketing/Outreach Expanded marketing efforts by the professional sales and marketing representative will promote and market Walnut Creek as a destination for association regional/national events, corporate group meetings, sports tournaments, corporate travelers, etc. This will be accomplished by the Regional Director of Sales & Marketing, and team members or colleagues helping to promote the Walnut Creek hotels. Trade Shows and Events Trade shows/networking events, represent a potentially strong opportunity for Walnut Creek. Therefore, the CVB will continue to participate and form partnerships with important industry organizations and attend their events and/or trade shows. Smart Meetings Connect Meetings Northstar Meetings Group/Destination California IMEX Meeting Professionals International CalSAE (California Society of Association Executives) Professional Convention Management Association Bay Area Business Travel Association Global Business Travel Association Additional, emerging event opportunities will also be considered. 13
Advertising Advertising will continue to be a significant focus for the CVB, with the goal of attracting groups/meetings/conferences and travelers to Walnut Creek. Local Marketing We will continue to consider billboard opportunities, BART marketing opportunities, and other local referral marketing possibilities to call attention to lodging and meetings in Walnut Creek. Magazine Publications We plan to advertise in magazines that focus on group business such as Smart Meetings, Connect, Successful Meetings and other regional or national publications which may result in new business opportunities for the hotels. We will also plan to consider business travel magazines, and potential marketing partnerships with San Francisco Travel, Visit California, and Brand USA. Social Media The CVB social media channels will continue to be enhanced during 2018-2019, with a focus on our Instagram account, @MeetInWalnutCreek. During the next year, we hope to increase @MeetInWalnutCreek Instagram followers from 1700 past 2000 and towards 2500 the following year. Photography & Video The value of quality images is critical to promoting Walnut Creek, therefore, adding interesting and timely photography to the CVB library will continue as an on-going project. In addition, video will be used in conjunction with the social media efforts and the website. Additional photography and video will be considered during 2018-2019. 14
CVB Growth During 2018-2019, we will consider the possibility of an enhanced PR partnership and an additional business development role as we continue to grow the operations of the CVB, and provide more and more group/conference/event/room night opportunities for the Walnut Creek hotels. Referrals We will continue to seek referrals for new conference/meeting/event opportunities though perhaps in a more enhanced way in 2018-2019. Airport, BART or billboard advertising will be considered. In addition, there will be a call for referrals within major local events. Many professionals reside in Walnut Creek and travel to other nearby areas (such as San Francisco) for work, and they can help us call attention to Walnut Creek within their businesses and spheres of influence. Local networking and CVB friends meetings will also help encourage and reinforce the idea of meeting in Walnut Creek and bringing overnight room nights to Walnut Creek. New Partnerships, New Marketing, New Promotions With a revised funding structure during the 2018-2019 fiscal year, the CVB will be able to pursue many new avenues for promotion and marketing in an attempt to further increase room nights and opportunities for the hotels. Some of these new initiatives may include: Group booking promotions and special offers throughout the year Ongoing Walnut Creek hotel reservation promotions Major sponsorships of events in Walnut Creek or in the East Bay (such as festivals, tournaments, or concerts) which may bring room night opportunities to the hotels Digital marketing campaigns within group meetings sites or hotel booking engine sites Additional East Bay collaboration towards new industry events which could call attention to Walnut Creek hotels for new business opportunities In-flight magazine marketing to business travelers 15
Sponsorship of meetings industry/business travel industry events which may bring new business opportunities to Walnut Creek New and additional marketing through photography and video Collaboration with San Francisco Travel and Visit California, as we introduce Walnut Creek to international visitors (as a central location for lodging within the Bay Area) Conclusion Walnut Creek is the Jewel of the East Bay, and we will continue to promote and market this idea throughout the country and beyond. This will lead to additional business opportunities for the hotels, and also help encourage higher room rates. It continues to be an exciting time in Walnut Creek, and we look forward to bringing additional attention, additional marketing, and additional business to the Walnut Creek CVB hotels. 16