Challenges and Opportunities in Promoting a

Destination

Reint Reinders, President & CEOSan Diego Convention & Visitors Bureau

ISHC

October 2005

Destination Marketing Perspective

• Evolution of San Diego’s Tourism Industry

• Global, National & Local Challenges

• Lessons Learned…Some Personal Observations

• Future of CVBs & Destination Marketing

1950’s

Evolution of San Diego’s Tourism Industry

• Creation of CVB• Mission Bay Park

hotel development• Mission Valley Hotel

Circle

Evolution of San Diego’s Tourism Industry

1960’s• Establishment of TOT • San Diego’s first

convention center (Concourse-downtown)

• CVB 1,000 members• SeaWorld

development

Evolution of San Diego’s Tourism Industry

1970’s• Visionary Mayor Peter

Wilson• Downtown

Redevelopment• “America’s Finest City”

civic slogan• San Diego Wild Animal

Park development• Old Town Development

Evolution of San Diego’s Tourism Industry

1980’s• First downtown waterfront hotel

development-Intercontinental• Horton Plaza shopping• San Diego Convention Center• First Super Bowl• Marriott’s first San Diego

investment• Seaport Village• Synergies in San Diego’s

governmental bodies

Evolution of San Diego’s Tourism Industry

1990’s• Mayor Golding & City

Manager strong allies for tourism

• Downtown renaissance continues

• Major event hosting

• Legoland of California

• Synergy of CVB and community leadership

Evolution of San Diego’s Tourism Industry

2000’s• Convention center

expansion

• Explosion of downtown development-condomania

• USS Midway

• Petco Park

• Casino Gaming legalized

• Economic Recession

• 9/11

Global, National, and Local Challenges

Our new customer…

“ Today’s consumer is smarter and savvier than ever. We live in a hyperlinked-hyper informed world where information is readily available on anything, at anytime.”

--YPB&R/Yankelovich Partners

Global, National, and Local Challenges

-8

-6

-4

-2

0

2

4

6

8

1998 1999 2000 2001 2002 2003 2004 2005

Occ % Change

ADR % Change

Total United StatesOccupancy / ADR Percent Change

Twelve Month Moving Average To August 2005

Global, National, and Local Challenges

Change in Channels

Global, National, and Local Challenges

CITY MANAGER TO STEP DOWN Assistant tapped to take Uberuaga’s place

DOWNWARD SPIRAL To pension mess add chronic mismangement

Crises beat Murphy down until he surrendered

COUNCILMEN GUILTY: Inzunza, Zucchet could face three to four years in prison, legal experts say

Global, National, and Local Challenges

$67.20

$74.04

$84.26

$91.23$96.62

$108.87

$98.33

$105.97$110.31

$121.02$125.00

$15.73$11.24 $11.52 $11.35

$12.76 $15.20$16.32 $16.21 $15.38

$12.51 $12.32

$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

'96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06

Fiscal Year

Inverse Relationships

TOT Collections

CVB Budget

Lessons Learned and Personal Observations

“Winners have the ability to step back from the canvas of their lives like an artist gaining perspective. They make their lives a work of art - an individual masterpiece.”

---Denis Waitley

Never under estimate the power of great people

Lessons Learned and Personal Observations

Money & TourismA necessary evil

Lessons Learned and Personal Observations

San Diego TourismIs a $5 billion corporation

Lessons Learned and Personal Observations

Product DevelopmentIs sometimes not a popularity contest

Lessons Learned and Personal Observations

IntegrityIn the end, it’s who you are

Lessons Learned and Personal Observations

• Tomorrow’s Leader– Organizational Credibility & Relevance– Funding– Talent

• Tourism Growth Strategies– Destination Branding– Product Development– Partnerships & Alliances

• Hospitality Community’s Role in Destination Marketing

Future Role of CVBs …

It’s either THIS…

A Call to Action for the Hospitality Community

Effective CVBs

A Call to Action for the Hospitality Community

Need Care & Funding