Produkti Turistik Dhe Marketingu i Tij Rasti i (California - 0607)

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TOURISM MARKETING BUDGET GROWS TO $50 MILLION page 2 page 9

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NATIONAL AD CAMPAIGN DEBUTS AT THE OSCARS®

INDUSTRY PARTNERS ACKNOWLEDGED FOR MARKETING EXCELLENCE

CTTC ATTENDS WORLD’S LARGEST INTERNATIONAL TRAVEL TRADE EVENTS

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INTERNATIONAL MEDIA RELATIONS RESULTS TOP $84 MILLION

THREE NEW CALIFORNIA WELCOME CENTERS OPEN

page 24 LOOKING AHEAD: THE 2007 REFERENDUM AND MORE…

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C A L I F O R N I A T R AV E L & T O U R I S M C O M M I S S I O N

California Travel and Tourism Commission

Executive Director’s Message It is truly an exciting time to be part of California’s tourism economic engine. California’s domestic market share made its largest gain in recent years, tourism funding levels are at a record high and strategic marketing initiatives continue to position California as one of the world’s premier travel destinations. The California Travel and Tourism Commission (CTTC) highlights many of these industry achievements here in Insights Year in Review. Governor Signs AB 2592 Creating $50 Million Budget Last year, Governor Schwarzenegger signed AB 2592 into law, allowing the tourism industry to collect additional assessments on passenger car rentals at airports and lodging properties. In addition to assessment collections from other industry segments, this landmark legislation allocated $50 million for FY 07/08 for tourism marketing (up from $25 million in FY 06/07). This dramatic increase in resources will allow the CTTC to greatly expand its marketing programs, directly benefiting tourism businesses. Governor’s International Trade and Tourism Mission The CTTC partnered with Governor Schwarzenegger on two high-profile international trade and tourism missions this past year to promote California as a premier travel destination to consumers in Mexico and Canada. The CTTC plans

to once again leverage its partnership with the Governor’s Office on a mission to India in early 2008, one of the world’s fastest growing economies as well as travel markets. Brand Marketing Millions of viewers watch the Academy Awards® for a glimpse of their favorite Hollywood stars. The CTTC launched its national spring/summer 2007 advertising campaign during coverage of the Oscars® and continued it through June. According to Strategic Marketing & Research, Inc. (SMARI), such high-profile advertising efforts have ranked California’s commercials as having the “best recall” among all tourism destinations in the U.S. Unique advertising and original marketing initiatives including media relations, travel trade and cooperative programs and an expanded Web site, reinforce the California brand giving consumers more reasons to visit. CTTC Welcomes Secretary Dale Bonner The CTTC is pleased to welcome Dale Bonner, who was appointed by the Governor in January as the Secretary of the Business, Transportation and Housing Agency (BT&H) and CTTC Chair, to the CTTC’s statewide tourism industry team. Secretary Bonner brings a wealth of experience to the organization that will be instrumental in assisting the industry in its new endeavors. The CTTC thanks former Chair and BT&H Secretary Sunne

Wright McPeak, who left the administration in November 2006, for her strong support and many contributions. Tourism Assessment Referendum Assessed businesses will be asked this November to renew the Tourism Marketing Act and Assessment Program (a renewal which is required by the industry every six years) that funds the CTTC and its marketing efforts. Recent gains in California market share demonstrate the positive impact that CTTC marketing programs have on the state’s economy. With additional funding in place, the CTTC looks forward to continuing its work with travel industry partners.

Caroline Beteta CTTC Executive Director Deputy Secretary for Tourism Business, Transportation and Housing Agency

Executive 2 Director’s Message

Insights Year In Review 2006–2007

CALIFORNIA TRAVEL & TOURISM COMMISSION

Highlights of the Year

“The proof of the industry-led CTTC’s success is in the results. Just last year, California met its 2010 domestic market share goals an astonishing five years ahead of schedule and more importantly, finally returning the state to pre-9/11 share levels. California Domestic market share climbed from 11.1 percent to 11.6 percent—the biggest increase in recent years, which translates into $3.06 billion in additional travel spending; 30,300 travel-related jobs and $115.7 million in additional state revenue.”

Caroline Beteta CTTC Executive Director

VISITCALIFORNIA.COM/YEARINREVIEW

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California Travel and Tourism Commission

Unprecedented $50 Million Allocated to Tourism Marketing History was made when Governor Schwarzenegger signed AB 2592 into law in September 2006. This monumental legislation allocated a record $50 million to the state’s tourism budget. Funding levels of this magnitude will allow the CTTC to significantly expand its marketing programs, while engaging deeply in critical research and long-term program planning for the benefit of California’s economic development far beyond 2013. The budget increase is a result of an additional tourism assessment program for the passenger car rental industry. In addition to assessment collections from the accommodations, restaurants and retail, and attractions and recreation segments, AB 2592 allocated $25 million from the passenger car rental industry for FY 06/07 and $50 million for FY 07/08 for tourism marketing. With $50 million, the CTTC will be able to significantly strengthen and expand current marketing and advertising efforts in key existing domestic and international markets, and introduce the California brand to long-haul domestic and international markets. Increased funding will also allow the CTTC to reach out to niche markets with volume/revenue potential, expand seasonal coverage to drive year-round visitation, and invest in technology programs such as Web sites, RSS feeds and e-newsletters to reach global mass markets. Advertising and technology, representing approximately 70 percent of the $50 million budget, are expected to have the most influence in driving CTTC programs. Advertising remains the largest program expenditure, while investment in technology and international programs increased over past years’ budgets.

The CTTC developed a 5-Year Strategic Marketing Plan to guide and support the CTTC’s collaborative and progressive global marketing initiatives based on an unprecedented budget of $50 million.

CTTC GUIDING PRINCIPLES • Do what the industry cannot do for itself—the CTTC will provide a statewide marketing platform to promote the California brand. • Leverage cooperative programs and focus on international and new market development—the CTTC will introduce the California brand to far-reaching audiences and establish strategic alliances with trusted in-market brands. • Evaluate programs’ return on investment (ROI) and measures on major programs—the CTTC will track and evaluate market penetration and program impact on attracting leisure travelers. • Focus on out-of-state and international audiences— CTTC marketing programs will serve to attract new consumers to California, while providing industry partners with opportunities to reach new markets that are otherwise cost-prohibitive. • Support assessed businesses—the CTTC will be a resource to assessed tourism businesses by providing marketing opportunities, a technology link to reach mass consumers, and tourism research material vital to the success of their operation. • Establish a technology link for all programs—the CTTC will use technology and innovation to create targeted, timely and cost-effective brand messages for the industry, including assessed businesses, travel trade, media and consumers. • Align with key California Convention and Visitor Bureaus (CVBs)—the CTTC will coordinate resources based on high-impact programs and initiatives.

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Budget

Insights Year In Review 2006–2007

Strategic results in domestic and international markets will be achieved through annual work plans that outline specific programs for brand advertising, cooperative promotions, technology, publications, communications, travel trade, research, RURAL TOURISM and California Welcome Centers.

Five core strategies drive the Strategic Marketing Plan:

1.

2.

3.

4.

5.

Protect and

Reach new

Expand

Deepen efforts

Develop technology

maintain volume

visitors in

marketing

in primary

platform to extend

in domestic

national

and seasonal

international

reach and impact.

primary markets.

opportunity

coverage to

markets.

markets.

drive yearround visitation.

CONTRIBUTIONS BY INDUSTRY SEGMENT

TOTAL BUDGET BY DISCIPLINE