Orange County NC Website
DocuSign Envelope ID:54EAOF14-1593-4CDB-B6D6-05BA2AB8F6C5 <br /> basketball tournaments we have contracted are currently not allowed to play until the governor <br /> changes his mandate) <br /> - Might lose all five of those tournaments to other states (with different mandates) <br /> - Conventions/meeting slow return in Fall probability <br /> - Playing by ear with a lot of these planned conventions and meeting for the second half of the <br /> year(if they do occur,they will probably be half virtual, half in-person) <br /> - A lot depends on vaccinations (there will be a percentage of the population that will refuse to <br /> take the vaccine, but they will still need some form of identification or proof that they tested <br /> negative) <br /> - Live Nation is booking concerts at the beginning of June and July(but still relies on vaccines and <br /> rapid testing) <br /> - Concerned about the potential influx of business travel <br /> - Citrix is not planning on having their employees return until July at only 50%capacity and that is <br /> permanent(a little concerning) <br /> - Other companies (i.e. Red Hat, Cisco...etc.) are planning on coming back at 50%but they hope to <br /> come back at full capacity in 2022 <br /> - The impact of business travel could be more long-term (projections about finishing this fiscal <br /> year: 43%down from 2019, 2022 projected to be 30% higher than 2021, 2023 projected to be <br /> 42% increase, and 2024 a 6% increase and 2025 a 12% increase) Hoping by 2025 a return to <br /> 2019 numbers but it is going to be a slow process. <br /> - This fall there is still a lot of unknowns but we are hoping that the second half looks somewhat <br /> normal from more demand generators than just leisure. <br /> - Questions: <br /> - "What percentage of your overall tourism business is convention center versus leisure? <br /> - "70% leisure, 30%group" <br /> - "In terms of the convention center and larger groups,we are still cautiously looking at 2022 for <br /> recovery there?" <br /> - Yes, conventions have to make a decision at least six months ahead of time because they have <br /> sponsored registration speakers.All the groups that we have for fall are having discussions <br /> about future dates right now because they are not sure whether or not they can even afford to <br /> have these meetings. Hybrid is a great option but more expensive (and revenue sources are not <br /> as prevalent as in person) <br /> - "Your staff is working very hard to elevate and amplify Wake County's messages of new <br /> restaurants and outdoor paths and arts and the limited events going on and you are doing a <br /> great job. How are you deploying your sales staff right now to look for future meetings?" <br /> - They are still doing a lot of virtual meetings right now.We lost 347 groups so far, however. They <br /> are spending a lot of their time working with existing clients that are currently on the books, <br /> looking at options and future dates. Part of their job now is trying to identify new opportunities <br /> but half their time is spent working with existing clients and the various options for them and do <br /> we need to look at future dates? They spend a lot of their time shifting dates. A lot of our focus <br /> right now is on state, regional, and a bit of national business (knowing there is still hesitance at <br /> least for the next year) Most of our meeting and convention business is going to be through <br /> that broad market, particularly in the short-term. <br /> - ADR projections? <br /> - All our contracted businesses and hotels are holding to the contracts with the existing <br /> businesses but the rate is definitely a challenge (example: 2019 ADR county-wide was $109 and <br /> right now we are at$88) So ADR will definitely be slow growth. Forecasts say they don't <br /> anticipate we will return to 2019 ADR until late 2023 (estimated 3-4 years for ADR to get back <br /> 3 Page CHOCVB BOD Meeting February 17 , 2021 <br />