TUESDAY, DECEMBER 9, 2014 | 8:00a.m.CENTER FOR CIVIL AND HUMAN RIGHTS

BOARD OF DIRECTORS MEETING

VICE-CHAIR OF THE BOARD AND EXECUTIVE COMMITTEE

BRAD KOENEMAN

CALL TO ORDER

CEO, CENTER FOR CIVIL & HUMAN RIGHTS

DOUG SHIPMAN

WELCOME

EVP & CSO

MARK VAUGHAN

DESTINATION REPORT

ATLANTA OCCUPANCY

October 2014 YTD

Occupancy

2013 2014

ACVB Tax Revenue

District

68.7% 73.0%

Hotels w/500+ rooms 66.6% 72.2%

Hotels within 1-mile

radius of GWCC

66.1% 71.0%

Metro Atlanta 64.5% 70.0%

Source: STR

OCTOBER 2014

KEY SALES ACTIVITESCurrently through July we are at 94.2% of our room night goal and 114%

of our lead goal

Demand share growth (October)+.18 (5.56%) in the top 25 markets and

+.24 (8.78%) in the top 15

Direct Sales Events

• American Bus St. Louis

• PCMA Chicago

• RCMA Birmingham

• Experient Annual Meeting Anaheim

• Travel South Shreveport

• Destination Showcase Washington

Additional Rooms 2,030

Grand Total 95,324

Note: These numbers differ slightly from the Productivity Report due changes in room blocks and distribution of booking credit.

NOVEMBER 2014

BOOKINGS

2014 YTD

Additional Rooms 127,334

Grand Total 1,366,628

MAJOR GROUPS FOR FUTURE YEARS

PRESIDENT & CEO

WILLIAM PATE

2015 BUSINESS AND

FINANCIAL PLAN

EVP/CAO/CFO

GREGORY PIERCE

MISSION

To sell and market metro Atlanta and Georgiaglobally as the premier conventions, meetings and

tourism destination in the regional, national and

international marketplace and favorably impact the

Atlanta economy through conventions and tourism.

2014 HIGHLIGHTS2013

Goal Estimated % of Goal Actual

Total room nights 1,620,000 1,650,000 102% 1,570,550

City wide room nights 1,200,000 1,250,000 104% 1,162,198

# of major citywides 20 20 100% 18

> 5000 peak nights

3 year running average

Room nights for 2,500 peak+ 925,000 930,000 101% 748,681

Leads

Total # of Leads 4,535 4,525 100% 4,402

# of city-wide leads 520 550 106% 578

Attendance goal for major 100% 108% 108% 111%

city wides

2014 HIGHLIGHTS

Continued productivity growth from Group Sales and Convention Services

effortso Group sales lead volume up 12% over goal

o Projected year end room night bookings to exceed 100% of goal

o Booked 15 new business opportunities (not in Atlanta for >5 years) representing

190,240 room nights

o Enhanced sales efforts with major third party distribution channels resulting in a

30% increase in hotel room nights and 1% market share growth

o 28 of 30 conventions have exceeded their attendance goals YTD by 8%

o Maintained TAP report pace at 109%

16 confirmed new business opportunities from hosting ASAE in August 2013

representing 230,253 room nights

2014 HIGHLIGHTS

Launched new responsive design website (Atlanta.net)

Strong growth and focusing of marketing initiatives

o Increased web traffic by 5% year over year

o Increased our social media reach by 189% year to date

Significantly enhanced the Sales presentation with video and bid book

process

Won a Platinum Adrian award for the ATLFiles Meeting Planner video

campaign

Successfully executed 4 consumer co-op campaigns integrating radio, TV,

social media, and digital for summer, Big Boo, Buckhead, and holiday,

meeting or exceeding goals

Expanded successful I Am ATL campaign to consumer markets

Developed 5 in-language marketing videos for International in partnership with

BrandUSA and Georgia

Developed a suite of attendance building videos to support customers

promoting their meetings

CONT.

2014 HIGHLIGHTS

*Continued positive momentum with visitor metrics from 2013 in City of

Atlanta:

o Occupancy up 6.7% from 2013 to 72.6%

o REVPAR up 10% from 2013

o Demand up 6.9% from 2013

*Metro market share of demand in top 25 destinations up 4% to 5.57%

from 5.38%

CONT.

* YOY through 09/30/2014

2015 GOALS

Increase room night bookings and maximize 1% Convention Marketing Fundo Room nights:

•1,225,000 room night goal for trade show sales

•420,000 room night goal for in-house sales

o 3-year average of major citywide conventions booked/events (5,000 peak nights and

above) to continue at 20

o 925,000 room nights booked for 2,500 peak and above

o Leads to increase by 3% over year-end actual

Achieve 100 percent attendance goal for major citywide conventions

Increase visibility of Atlanta as one of the top U.S. meeting and travel

destinations

Maintain atlanta.net as the premier hospitality online marketing platform

Continue to position ACVB as an industry expert nationally and as the singular

voice of hospitality in Atlanta

New or significant ramp up in focus

Maximize opportunity with hosting TSNN (Trade Show News Network) Awards in

Atlanta 50 of top US trade shows are recognized for their significant growth in exhibit space and

attendance

High visibility to the top 250 trade shows in the US

Promote a Future Vision of Atlanta during our Update presentations throughout the

year Continue DC and Chicago Updates

New Updates in Northeast and West Coast markets

Conduct market updates to major hotel brand national sales offices

Identify opportunities within the emerging “Independent Show Organizer” (for-profit)

market

Full integration of Online bid books

Further integration of GWCC and ACVB CRM systems for real-time data and revenue

optimization

Revamp sales programs to maximize exposure

Optimize enhanced ASAE partnership directed at key decision makers

Further optimization of in-house sales efforts and small meetings

Investigate opportunities with Delta on HUB city partnership focusing on the meetings

and convention market

Launch new, scalable, and compelling minisites to reach all non city-wide groups

Increase room night bookings and maximize

1% Convention Marketing Fund

Continue or enhance focus from prior year

Host four meeting planner FAM tours, totaling 100 participants

Attend one major prospect’s event per quarter

Quarterly regional sales calls by each manager

Identify 25 trade shows not considering Atlanta and attend their convention

Continue efforts in the medical, manufacturing, construction, financial, energy

and education industries to support the sales team’s emerging industries

strategy

Host 25 FAM trips for international tour operators, totaling perspective clients

Participate in 70 industry events and trade shows to highlight Atlanta as a

premier meeting and convention destination

Further enhance our partnership with the major third party partners and

monitor production quarterly

Continue to optimize Atlanta’s destination advertising campaign targeted to

meeting planners to achieve maximum reach and impact

Increase room night bookings and maximize 1%

Convention Marketing Fund

New or significant ramp up in focus Work with convention planners to maximize destination marketing opportunities and utilization of attendance

building enhanced services offerings Coordinate with PR on Media FAMs for top city-wide groups

Coordinate hosted events/exhibitor FAMs for top city-wide groups

Launch new attendance building video with customization for top city-wide groups

Redesign international websites to provide international attendees relevant destination content

Continue coordination of attendance building enhanced services: website, e-newsletters, integrated destination

content with housing company, customized collateral/content, videos and etc.

Implement supplier road show (UP NEXT) to highlight Atlanta’s offerings for events and services

Continue or enhance focus from prior year Ensure ACVB efforts are aligned with clients’ goals for major groups

Continue targeting attendees with destination content through social media channels

Continue exploration of most effective manner to facilitate increased international meeting attendance

Develop integrated branding mini-sites, providing online attendance-building marketing for all full service city-

wide groups

Attend 11 customer events to promote Atlanta for their 2016 convention

Achieve 100% attendance goal for major citywide

conventions

New or significant ramp up in focus

Provide Sales with enhanced collateral and tools

o Print pieces and trade show booths

Maximize regional partnerships/alliances focusing on international visitation

Expand leisure marketing of the I Am ATL destination awareness campaign, and

evolve the meeting planner campaign

Launch a social media influencer FAM/Conference

Redesign layout and upgrade content of AtlantaNow visitor magazine with JV

partner

Continue or enhance focus from prior year

Enhance the media buying strategy to more effectively span digital and social

channels to reach the target audiences

Extend partnership approach with EventSphere to other Housing companies to

influence attendance of midsize groups

Continue integration of brand messaging across all communication channels

Integrate storytelling approach to evolve brand creative and messaging for richer

destination experiences

Leverage new and emerging product, existing assets, industry research and current

news to drive continuous editorial destination coverage.

Continue with refreshed summer, Halloween, and holiday co-op campaigns

Curate weekend getaway experience packages for target audience

Increase visibility of Atlanta as one of the top U.S.

meeting and travel destinations

New or significant ramp up in focus Design and execute for mobile – to reflect significant behavioral shift online from

desktops to mobile devices Significantly expand use of video and strong visuals to drive traffic Train Sales and Convention Service to leverage the new online resources and

increase relevancy and visibility of AtlantaMeetings.com

Continue or enhance focus from prior year Optimize new responsive design website with curated mobile content Continue positioning atlanta.net assets (web, mobile web, social) as the definitive

source for information on what to see and do in Atlanta Ongoing refinement of successful search engine optimization (SEO) strategy to drive

qualified traffic to the key content categories Ongoing refinement eCRM (includes social) program to maximize user engagement

while growing user base Optimize ad model to leverage growth of mobile and provide additional revenue

opportunities

Maintain atlanta.net as the premier hospitality online

marketing platform

New or significant ramp up in focus

Implementation of recommendations for revamping entire membership

strategy and structure

In-depth review of company-wide CRM software and benchmark against

other industry options. Implement changes/updates where required

Continue or enhance focus from prior year

Continue focus on cabinet alignment against industry priorities and

initiatives

Engage public and private sector by serving on boards, speaking

engagements and utilizing Atlanta executives in ACVB sales efforts

Maintain relationships with city and state administrations

Maintain leadership positions on hospitality industry boards

Highlight industry expertise through guest columns and editorials

Position ACVB as an industry expert nationally and as

the singular voice of hospitality in Atlanta

2015

FINANCIAL PLAN

• Total revenue flat• Public sector revenue up 3.5% over 2014

forecasted year-end (2014 up 8% over 2013)• Payroll and related expenses, for ACVB only, up 5%

• 2.5% performance based merit increase pool, • Annual increase in employee benefits of

6%(renewals on group insurance plans)• Operating expenses, direct promotional expenses

and expenses for capital assets are relatively flat

2015 Financial Plan Points

2015 Budget 2014 Forecast

Total revenue 29,490,968$ 29,424,419$

Total expense 29,229,266 29,021,169

Excess(deficiency) 261,702$ 403,250$

2015 Summary Budget

2015 Budget 2014 Forecast

Georgia World Congress Center-Atlanta 12,032,000$ 11,590,400$

Georgia World Congress Center-Fulton Co 27,000 35,285

Atlanta Convention Marketing Fund - 80% 6,111,492 5,887,187

Atlanta Convention Marketing Fund - 20% 1,527,873 1,471,797

City of East Point 625,000

Total Public Sector Revenue 19,698,365$ 19,609,669$

Total Public Sector

Revenue

Contributed services 3,700,000 3,345,000

Co-op cash support 1,320,000 1,300,500

Grants/sponsorships 15,000 11,750

Internet revenue 1,716,603 1,720,000

Membership dues 1,375,000 1,475,000

Membership services 20,000 19,000

Other revenue 221,000 385,000

Publication ad revenue 1,325,000 1,390,000

Total private sector revenue 9,792,603$ 9,814,750$

Total Private Sector

Revenue

2015 Budget 2014 Forecast

Direct promotional expense 11,827,042$ 12,350,982$

Expense against capital assets 1,575,000 1,541,500

Other operating expense 973,510 910,000

Payroll and related expense 8,742,222 8,331,500

Transfer to ACMF reserve 6,111,492 5,887,187

Total expense 29,229,266$ 29,021,169$

Total Expense

2015 Revenue 2015 Expense

Atlanta Convention & Visitors Bureau, Inc. 24,923,365$ 24,747,277$

ACVB Enterprises, LTD 3,041,603 2,981,989

ACVB Foundation, Inc. 1,526,000 1,500,000

29,490,968$ 29,229,266$

Total Budget by Corporate

Entity

2015 AJFF STEERING COMMITTEE

MATTHEW BERNSTEIN

ATLANTA JEWISH

FILM FESTIVAL

PRESIDENT & CEO

WILLIAM PATE

CHINA

OPPORTUNITY

China Outbound Travel Market

China Economic Overview

2010 2011 2012 2013

Population (m) 1,341 1,347 1,354 1,361

Nominal GDP (US$ bn) 6,040 7,298 8,447 9,250

Real GDP growth (%) 10.4 9.3 7.7 7.7

GDP per head (US$ at PPP) 4,361 5,414 5,432 6,796

Household Consumption

Expenditure (%) 8.2 10.3 9.4 8.0

China Outbound Travel

120

100

80

60

40

20

0

11497.3

8270.2

57.38

47.545.8440.95

34.523128.85

16.620.22

8.43 9.2310.4712.137.14 7.59 8.18

2012:

2013:

2014 (est.):

2020 (est.):

83 million - 6% of China’s population

97 million - world’s #1 source market

114 million outbound spending $140 billion

200 million outbound

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Destinations of Chinese Travelers

Only 10% of Chinese outbound travelers flying long-haulOnly 1.5% of Chinese outbound travelers visiting the U.S.

Chinese Travel to the U.S.

Aspirational Long-haul Destinations for Chinese

2013 2014 63%

58% France

50% 54%

53% 50%

United States of America

Australia

42% 44%

42% 43%

37% 38%

35% 37%

32% 36%

Canada

New Zealand

Italy

United Kingdom

Germany

24% 24%

20% 22%

Brazil

Greece

Question: What country(ies) will you likely visit during your next holiday to a destination outside ofAsia? Select all that apply.Base: China intercontinental travelers (2013 N=1,475, 2014 N=1002) Source: Brand USA Custom Study

Chinese Visitors to the U.S.

Key Message: China has soared up the

rankings to #5 in terms of overseas

visitor number and spending in the

in 2013, and is projected to rise to

become our top overseas source

U.S.

market within 6 years.

2003

2012

2013

2014

2017

2018

Under 200,000

1.4 million

1.8 million (+22.6%) #5

#4

#3

#2

overseas

overseas

overseas

overseas

market

market

market

market

est.

est.

est.

2.18

3.66

4.31

million

million

million

(+21%)

(+18% )

(+18%)

Sources: U.S. Department of Commerce, ITA, National Travel and Tourism Office

Chinese Expenditure in the U.S.

Spend Per Person Per Trip: $6,000 spend per

person per trip to the U.S. makes Chinese the highest spending visitor group per person per trip to the U.S.

Travel Spend: China’s middle and upper classes

spend 19% of their annual salaries on overseas travel– dramatically more than any other source country

Luxury Spend: 75% of Chinese tourists purchase

more than 3 luxury items per trip

Global Force: Chinese tourists make up 25% of

global spending on luxury goods

China Airlift to the U.S.

China’s Gateway Cities to the U.S

Beijing

Shanghai

Guangzhou

Chengdu (June)

Wuhan (December)

Hangzhou(April 2015)

U.S. Visa Updates

under 5 days

4-5 days France &Australia:

Close to 90% of non-immigrant applications from

Chinese nationals are approved

New on-line system allows Chinese applicants to: Schedule visa interview appointments

Pay visa processing fees

Check on status of issued visas on-line rather

than person

in

Next Goal:

the U.S.?

5-year multiple-entry visas for Chinese to

China Travel Trends

Preferred Leisure Pursuitsby Chinese Middle/Upper Class

Key China Trends

● Rapidly Evolving Profile of Chinese Travelers Leisure travel soaring: 63% share and rising

Package tours still key (70% share) and will dominate

for the next decade Rapid shift from multi-destination to multi-experience

Accelerating shift from package tours to air-tel/FIT –

30% and rising thanks to visa flexibility and rapidly

growing sophistication of Chinese travellers

$1,100 spent per day when traveling

(excluding accommodation)

Implications Beyond-the-Gateway Potential: the Chinese travel

trade are hungry for new itineraries and new tour

products

FIT/Luxury Booming: FIT/luxury travel products are

rapidly becoming established and will see the greatest

growthover the coming decade

MICE Market: China is a huge MICE market, esp. for

mid- size and large-size incentive groups to the U.S.

Duration of Next Trip: 2014

1%

%

3 nights orless

Total Likely Visit U.S. in Next Trip

10%

8%4-‐6 nights

57%

55%7-‐13 nights

29%14-‐20 nights 33%

4%

4%21+ nights

Question: How long will this holiday likely be?Base: China intercontinental travelers (N=1,002), China travelers who will likely visit the U.S. in theirnext intercontinental trip (n=539) Source: Brand USA Custom Study

Months Likely to Travel

2%January 3%

4%February 5%

3% Total

Likely Visit U.S. in Next Trip

March 2%

4%April 5%

17%May 18%

15%June 17%

20%July 22%

21%August 23%

17%September 19%

29%October 29%

4%November 4%

3%December 3%

Question: In what month(s) will you likely take this holiday? Select all that apply.Base: China intercontinental travelers (N=1,002), China travelers who will likely visit the U.S. in their next intercontinental trip (n=539)Source: Brand USA Custom Study

Booking Window for Pre-packaged Holiday/Guided Tour Packages - 2014

1 day or less/did not reserve inadvance

2 to 6 days

1%2%

Total

Likely Visit U.S. in Next Trip11%

10%

27%28%1 to 2 weeks

23%25%

27%

3 to 4 weeks

1 to 2 months 23%

8%8%3 to 5 months

2%3%

0%1%

6 to 12 months

More than 1 year

Question: How far in advance of your departure date did/will you book the travel products for this holiday? Select one option from the drop-down box.Base: China intercontinental travelers who booked /will likely book pre-packaged holiday or guidedtour package (N=360), China travelers who will likely visit the U.S. in their next intercontinental trip(n=194)Source: Brand USA Custom Study

D

Chinese Destinaiton Selection Drivers

estination Selection

“Affordability”

“Dining”

“Safety”

Criteria

61%

58%

57%

Destination Selection Tools

1. Travel Agencies: travel agencies remain the dominantdestination selection tool with most Chinese travelersstill using local bricks-and-mortar travel agents and travel agency or airline websites in making a final destination selection

2. Online channels: including destination websites,travel portals, social networking channels, and blogsare soaring in importance as a destination selection channel

Word of Mouth: ”bragging rights” are extremely important in the China market -- being able to boast to friends and family about having visited a given destination and purchased given luxury goods –increasingly on-line word of mouth is becoming key via blogs and video sharing sites

3.

China Market Recap: Alignment of Key Factors Size: massive market size of 1.3 billion

Potential: only 7% of this population now traveling overseas – versus

25% for Korea

Growth: number of outbound travelers to double in next 6 years to

200 million

U.S. Market Share: only 1.5% of outbound Chinese travelers are now

traveling to the U.S.

Desire to Visit: rapid growth in aspiration to visit the U.S.

Disposable Income: Chinese incomes growing at 10-20% per year

Willingness to Spend: 19% of disposable incomes spent on

travel

RMB appreciation: making travel to the U.S. increasingly

affordable

U.S. Visa Barrier: now manageable for Chinese travel trade

Booming Airlift: new gateways and airlift to the U.S. rapidly developing

Hungry Travel Trade: want new U.S. packages beyond the gateways

Hungry Media: on-line and off-line media hungry to feature the U.S.

Spend: per visitor per day already leads all overseas markets

Arrivals: #1 overseas market for the U.S. within 6 years

Xie Xie!

Thank You!!!

PRESIDENT & CEO

WILLIAM PATE

Presidents Report

Election of 2015 Officers and Executive

Committee

Old Business

2015 Election of Officers• Nancy Oswald Chair, Advisory Board Ruth’s Chris

• Niles Harris Vice Chair Sheraton Atlanta– Chair, Diversity Committee

• Ken Bernhardt Secretary Consultant/GSU– Chair, Atlanta Convention Marketing Fund Committee

• Ben Shanley Treasurer The Coca-Cola Company

• Erica Qualls Vice Chair- Atlanta Marriott Marquis

Compensation Committee

• Stan Wilson Vice Chair-Finance & HR Elarbee, Thompson, Sapp & Wilson

Staff Officers

• William Pate President & Chief Executive Officer

• Mark Vaughan Executive Vice President & Chief Sales Officer

• Gregory Pierce Executive Vice President & Chief Administrative Officer/CFO

• Andrew Wilson Executive Vice President & Chief Marketing Officer

2015 Election of Executive

Committee Members• Ed Baker Atlanta Business Chronicle

• Stephanie Barrell Bank of America

• Chris Coan Gas South

• Debby Cannon GSU

• Thomas Dortch, Jr. TWD, Inc.

• Jo Ann Herold Interface

• Sharon Goldmacher Communications 21

• Brad Koeneman Hilton Atlanta

• Raymond King Zoo Atlanta

• George McKerrow Ted’s Montana Grill

• Pete Moraitakis United Distributors

• Frank Poe GWCCA

• Jeff Portman AmericasMart

• Kris Reinhard Fifth Group– Chair, Membership Committee

2015 Election of Executive

Committee Members-cont.

• Derek Schiller Atlanta Braves

• Alexis Scott Atlanta Daily World

• Armand Vari Jacoby Development

• Peter McMahon Hyatt Regency Atlanta

• Ron Tarson Westin Peachtree Plaza

New Business

Adjourn