Destination Sales and Marketing Plan

205 Pages·2017·8.66 MB·English

DRAFT AS OF
JANUARY 2017

SAN DIEGO TOURISM AUTHORITY
DESTINATION SALES AND
MARKETING PLAN
2017-2018

SAN DIEGO TOURISM AUTHORITY
MISSION
To drive visitor demand to economically
benefit the San Diego region.
VISION
Leading San Diego to be the most
desirable destination.
ABOUT US
The San Diego Tourism Authority (SDTA) is San Diego’s umbrella destination marketing organization,
charged with driving visitor demand and monitoring the health of the tourism industry. SDTA develops
sales and marketing programs that promote San Diego as a preferred leisure and meetings destination.
In collaboration with San Diego’s tourism industry partners, SDTA serves as the collective voice of the
destination and aims to keep San Diego top-of-mind.
Incorporated in 1954, SDTA is a private nonprofit 501c6 corporation that is governed by
a 30-member board of directors composed of industry and non-industry representatives. Funding
comes from the City of San Diego Tourism Marketing District, County of San Diego, City of Coronado
Tourism Improvement District and private source revenues (membership dues, advertising and events).
Investment by the SDTA in sales and marketing of the San Diego brand has resulted
in San Diego becoming one of the nation’s top travel destinations.
STRATEGIC IMPERATIVES
• Grow visitor demand for San Diego.
• Strengthen and maximize the San Diego brand domestically and internationally.
• Deliver consistent value for our customers and stakeholders.
• Actively inform, advocate and educate on behalf of the visitor industry.
• Reinforce and support a culture of excellence.
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SAN DIEGO TOURISM AUTHORITY
INTRODUCTION AND OVERVIEW
The 2017–2018 San Diego Destination Sales and Marketing Plan is a
comprehensive plan developed to guide SDTA’s sales and marketing
programs over the next two years.
The goal is to grow inbound travel demand and visitation revenues by
boosting brand awareness, building new markets and converting more
customers to choose San Diego.
This strategic plan has been developed with the San Diego Tourism Marketing
District's 20-Year Master Plan in mind. The plan takes into account current
market conditions, tourism industry forecasts, SDTA funding resources, Visit
California opportunities and Brand USA developments. Annual work plans are
then developed to match funding resources to strategic initiatives.
EIGHT GUIDING PRINCIPLES USED IN THE DEVELOPMENT OF THE
PLAN
1. Drive the maximum hotel room nights for Tourism Marketing District Hotels.
2. Act as the collective voice of the destination and do what individual
organizations can’t do by themselves.
3. Elevate the San Diego brand and broaden context of San Diego’s
diverse travel product.
4. Leverage all SDTA’s marketing assets across Bought + Earned + Owned in
order to increase San Diego’s share of voice.
5. Focus on developing new markets and audiences for the destination.
6. Align programs with Visit California and Brand USA in order to
maximize efficiency.
7. Deliver strong return on investment for all major programs.
8. Support the membership by providing value and opportunity to
effectively reach the marketplace.
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SAN DIEGO TOURISM AUTHORITY
THE TRAVEL AND TOURISM MARKET
A GLOBAL TRAVEL MARKET
SHARE OF INTERNATIONAL TOURIST
ARRIVALS BY CONTINENT (2015)
Today’s world is more connected and globalized than
ever before due to the advancements of technology
and the growing access to travel. Developing middle
60%
class populations around the world are growing the
global travel market to record highs. The World 609 million
Tourism Organization (WTO) reports that 1.2 billion 50% 51%
tourists traveled outside their own country in 2015, up
4.4 percent or 50 million additional tourists. These 40%
international travelers made a total economic
contribution of $7.2 trillion to the world’s GDP and
30%
supported 284 million jobs. The travel sector
contributes more than twice that of the automotive 277 million
industry and rivals the banking industry in the world, 20% 23%
191 million
and is growing at a faster rate than global GDP.
16%
10%
Growth in global travel is expected to be mostly generated
from the regions of the world that have a fast growing 54 million 53 million
5% 5%
middle class. The WTO forecasts the Asia Pacific region to 0
grow travel GDP by more than 5 percent annually through Europe Asia Americas MIddle Africa
Pacific East
2026, compared to 3.5 percent growth in North America,
and 2.7 percent in the European Union1 . In 2015, the SOURCE: World Tourism Organization 2016
European Union received 51 percent of the world’s
international arrivals, followed by the Asia Pacific region at
23 percent. The Americas received just 16 percent of the
world’s international arrivals. International arrivals in 2015 TRAVEL AND TOURISM GDP GROWTH
increased more than 5 percent in Europe, Asia Pacific and BY REGION (2016-2026)
the Americas.
South Asia 7.1%
South East Asia 5.8%
North East Asia 5.6%
Sub Saharan
Africa 5.2%
Middle East
4.9%
North Africa
4.2%
Latin America
3.7%
North America
3.5%
Other Europe
3.5%
Caribbean
3.4%
Oceana
3.2%
European Union
2.7%
0% 1% 2% 3% 4% 5% 6% 7% 8%
SOURCE: World Travel & Tourism Council 2016
1 UNWTO Annual Report 2015
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SAN DIEGO TOURISM AUTHORITY
THE U.S. TRAVEL MARKET
Americans produced 2.2 billion person-trips in the U.S. in 2015. In
contrast, international travelers to the U.S. totaled 77.5 million arrivals
in 2015. The domestic leisure market, which is 79 percent of U.S.
person-trips, grew 3.6 percent in 2015 and the business market, which
is 21 percent of the domestic market, grew 1.9 percent in 2015. All
travel generated 1.19 billion hotel room nights in the U.S. in 2015 .
All travel spending in the U.S. reached $947 billion in 2015, of which $814
billion was spent by Americans and $133 billion was spent by international
travelers to the U.S. Spending by Americans increased 2.1 percent over 2014,
while spending by international travelers declined 2 percent over the same
time. This decline, due to the slowing global economy and a stronger dollar,
followed five consecutive years of spending growth by international travelers.
The Leisure traveler spent $651 billion (69%) and the business traveler spent
$296 billion (21%). Within the business market, the meetings and conventions
traveler was responsible for $121.9 billion in spending, up 6 percent over
2014.
The state of California leads all U.S. States with travel spend reaching $124
billion, a 13 percent share of total U.S. travel spend. Florida is a distant second
at $85 billion, and the states of Texas and New York follow generating about
$66 billion in travel spending.
U.S. DOMESTIC PERSON-TRIPS
1,719 459
0 500 1,000 1,500 2,000 2,500
MILLIONS
Domestic Leisure Travel Domestic Business Travel
U.S. DOMESTIC SPENDING
$651 $296
0 500 $1,000
BILLIONS
Domestic Leisure Travel Spend Domestic Business Travel Spend
1 Tourism Economics, San Diego Travel Forecast, August 2016
2 U.S. Travel Association, U.S. Travel and Tourism Overview 2015
4 3 www.ustravel.org/economicimpact
SAN DIEGO TOURISM AUTHORITY
THE TRAVEL AND TOURISM MARKET
U.S. DOMESTIC TRAVEL FORECAST
Domestic Person Trips in the U.S
Looking ahead, Tourism Economics forecasts total domes- (millions)
tic person-trips growth to slow to 1.2 percent in 2016,
2015 2016 2017 2018 2019 2020
and 1.3 percent in 2017. In both years, as in years past,
Total 2178.7 2205.1 2266.9 2342.5
leisure travel is expected to grow at a higher rate than
% change 3.3 1.2 1.4 1.7
business travel. The Tourism Economics forecast points
to a stronger labor market and consumer confidence with
By Purpose
expected wage growth and accelerated housing activity Business 459.4 457.2 459.4 463.0 466.5 471.1
supporting leisure travel growth, while sluggish global % change 2 -0.6 0.5 0.8 0.8 1
trade, constrained business investment from the strong Leisure 1718.9 1747.9 1775.2 1804.0 1836.9 1871.4
% change 3.6 1.7 1.6 1.6 1.8 1.9
U.S. dollar along with the Trump presidency policy uncer-
tainty weighing on business travel growth. Hotel Room
Demand

Room Nights 1186.1 1205.1 1224.7 1246.3 1270.4 1295.5
INTERNATIONAL TRAVELERS % change 2.7 1.6 1.6 1.8 1.9 2.0
International travel contributes a healthy portion to the
Source: Tourism Economics
growth of the nation's travel and tourism industry. The
U.S. received 77.5 million international arrivals in 2015.
Of those, 38.4 million came from overseas markets and
39.1 million were from Canada and Mexico. The United 77.5 $133billion
States' share of total international arrivals is 6.5 percent
(down from 7.5% in 2000, but up from 6.4% in 2014). million
Each overseas traveler spends approximately $4,400
when they visit the U.S. and stay on average 18 nights.
The highest growth in travel markets through 2020 is
forecasted to come from China (129.2% growth) and India
(47% growth).
International International

Arrivals to U.S. Visitor Spend
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SAN DIEGO TOURISM AUTHORITY
THE U.S. TRAVEL MARKET
Canada
United Kingdom
China
South Japan
• San Diego
Korea
India Taiwan Mexico
Current markets
Australia High-growth future
TOP FIVE INTERNATIONAL TOP FIVE HIGH-
FORECAST
MARKETS ARRIVALS GROWTH MARKETS
ARRIVALS
TO USA (ARRIVALS) THROUGH 2020
ORIGIN OF VISITOR 2015 ORIGIN OF VISITOR PERCENT CHANGE 2014 / 2020
Canada 20.7 million China 129%
Mexico and Central America 18.4 million India 47%
United Kingdom and Ireland 4.9 million South Korea 36%
Japan 3.8 million Taiwan 39%
China 2.6 million Australia 26%
Source: 2015 U.S. Visitation Report, U.S. Department of Commerce Source: U.S. Travel Answer Sheet December 2016 Final

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SAN DIEGO TOURISM AUTHORITY
THE TRAVEL AND TOURISM MARKET
REGIONAL OVERVIEW OF SAN DIEGO TOURISM
San Diego is one of the nation’s most popular travel destinations, thanks to our temperate climate, natural beauty, diverse
activities and ideal location. In 2016, over 34.6 million day and overnight visitors came to San Diego, providing $10.3 billion
in direct visitor spending and generating $246 million in hotel transient occupancy tax revenues.
2 0 1 6 F A S T F A C T S
SAN DIEGO TOURISM INFRASTRUCTURE
Market Composition ........................... 88% Leisure, 12% Business (all visitors)
Number of Hotels ........................................................... 472
Number of Hotel Rooms............................................60,611
Number of Hotel Rooms in the City of San Diego ..................... 41,611
Hotel Room Nights Mix ............... 72% Leisure / Transient, 25% Group, 3% Contract
Annual Airline Passengers................................................ 10 Million
Annual Attendance at Major Attractions ................................. 14.6 Million
Total Indian Gaming Properties .......................................... 12 Casinos
Cruise Embarkations .......................................214,671 passengers total,
74,729 embarking passengers
Number of Golf Courses........................................................97
Number of Arts Institutions.....................................................85
Craft Breweries ..............................................................130
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SAN DIEGO TOURISM AUTHORITY
THE SAN DIEGO TOURISM AUTHORITY
FY2017 ORGANIZATION BUDGET
$36
REVENUE EXPENSES
Operations Operations
Private Private
$4.4M $4.4M
Source Source MILLION
$5.7M $5.7M
TMD TMD Sales / MarketingSales / Marketing
$30.3M $30.3M $31.6M $31.6M
KEY PERFORMANCE INDICATORS (KPIs)
FY2016 ACTUALS FY2017 GOALS
1. Market Share of Hotel Room Nights Sold in Western Region Comp Set 16.04% 16.21%
2. RevPar Growth 3.9% 4.7%
3. TOT Collections (City of San Diego)* $202.8 M $216.3 M
4. Visitor Spending Growth 4.8% 5.9%
5. Citywide Room Nights 1,092,889 860,000
6. Non-City Wide Group Room Nights (new meetings only) 410,992 415,000
7. Earned Media $30.9 M $31 M
8. Co-op Ad Dollars Raised $712,488 $605,000
9. Advertising Gross Impressions 1.3 Billion 1.3 Billion
10. Visitor Inquiries 9.3 M 9.4 M
11. Contracted Ad Sales $1.1 M $995,000
* Final to come from City of San Diego
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