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