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DocuSign Envelope ID:54EAOF14-1593-4CDB-B6D6-05BA2AB8F6C5 <br /> information and forecasts right now, we are cutting our revenue by 70%. We have $1 million <br /> projected for occupancy tax revenue and then $200,000 contribution from the Town of Chapel Hill <br /> from their occupancy tax revenue. In total, our projected revenue is 1.3 million. Of that, $106,000 is <br /> the County Administrative Fee, $533,000 is salaries and benefits, $169,000 is building rent and costs <br /> with the new location at 308 W. Franklin St., and we fund the Orange County Arts Commission at <br /> $226,000. There is some revenue offset from the Arts Commission with their state grants which is <br /> why we are projecting 1.3 million total revenue. Fixed/non-discretionary costs total $1,034,000 <br /> leaving just$276,000 to retain Clean Design and continue promotions,travel data research and just <br /> tourism marketing to ready the market back. That's a 70% decrease from previous years. $276,000 <br /> may sound like a lot but it is not. It is easier to say what we cannot do this coming fiscal year. <br /> • We will not be able to produce any visitor guides <br /> • We will not be able to reconfigure our website for the new conference layouts at this point <br /> • We will not be able to redo the restaurant dining maps <br /> • We will not do any trade shows for sales solicitation <br /> • We will not do any printed media,we will limit social media and we will not sponsor any events. <br /> Manish Atma asked "How is cutting back on all these marketing and promotion programs for the hotels <br /> and restaurants going to help the hotels and restaurants?" <br /> Laurie answered "Yes,that is going to hurt. Right now staff is working on a tourism recovery plan and <br /> part of that is asking the County for some financial help." <br /> Presentations <br /> Dennis Edwards, President&CEO Greater Raleigh Convention and Visitors Bureau. <br /> Tourism Recovery in the Triangle: <br /> • Greater Raleigh Convention and Visitors Bureau: <br /> - Lost revenue: $185 million (sporting events,travel, and conventions) <br /> - Occupancy down 40%for the year 2020 <br /> - Occupancy tax collections down 52.8% in 2020 <br /> - The fiscal year currently down 58.7% <br /> - Adjusted budget for the fiscal year by instituting a hiring freeze,taking salary/benefit reductions, <br /> cutting all travel, conferences,training, and education (i.e. "survival mode") <br /> - In cooperation with Wake County, we received 1.25 million from CARES Act funds in early fall <br /> - Develop/enact marketing plan by end of December <br /> - Funds received allowed for continued attendance of trade shows and the implementation of <br /> aggressive advertising and marketing plans <br /> - Still facing real challenges in terms of budget standpoint entering 2021 year <br /> • Projected 2021 Year: <br /> - Assessing various research (U.S.Travel, Longwoods International, Destination Analysts, and <br /> CBRE)to do forecasting/projections <br /> - Good news: Longwoods International last week is that 81%of the American public plan on <br /> taking a trip in the next six months (up 16%from 30 days prior to survey) <br /> - Vaccines are having an impact on consumer confidence (from a leisure travel standpoint) <br /> - Quickest rebound:visiting friends,families, relatives <br /> - The leisure market is expected to rebound the quickest (then sports) <br /> - Having their first event in convention center next weekend since March 20, 2020 <br /> - A little bit of indoor sports returning but limitations with mass gatherings still inhibit some <br /> things <br /> - The state has split sports into categories—green,yellow, or red (volleyball is yellow, meaning <br /> that you can still play volleyball but you have to wear a mask, Basketball is red, so those five <br /> 2 Page CHOCVB BOD Meeting February 17 , 2021 <br />