SPORTS 1 ST SAN DIEGO SUCCESSOR TO SAN DIEGO SPORTS COMMISSION Continuing to Fill the Room Night Pipeline Tourism Development Through Sports Tourism Marketing District Presentation February 13, 2015

SPORTS 1 st SAN DIEGO: Transition November 1, 2014 SDHOC/SDSC Spins-off TMD Contract & Employees (2) to San Diego Tourism Authority FY 2015 TMD Contract Assigned = $329,000/$260,500 San Diego Tourism Authority: First 90 Days of Added Value Overhead and Administration – From Staff of 2 to 72, plus, plus SDTA Marketing & Sales Support- $53K Value Integrated Website - $25K Value Specialty Advertising/Media - $12K Value Ad Creative Development, Media Planning & Buying - $11K Value Social Media Output- $ 5K Value Site Visitation Support To Come Integrated PR Support To Come

Sports Tourism: Filling the Pipeline Over 200,000 Sports Tourism Room Nights Annually 43 Events = 29 Returning + 14 New (FY 2015) Over 114,000 Room Nights Separately Funded Plus: 42,150 Historical Room Nights 50,400 Room Nights Added Into the Pipeline for Future Years 25,600 New Room Nights (For-the-year-in-the-year) ROI Scenarios: A. 42, , ,400 = 118,150 Room Nights 43.3 : 1 B. 50, ,600 = 76,000 Room Nights 27.9 : 1 C. 25,600 = 9.38 : 1

Sports Tourism: Beyond ROI Geographic Distribution Over 80% for Sports Tourism Room Nights are Consumed Outside of the Downtown Core, Directly Impacting Sub-regions. Consumption Occurs Across a Broad Product Mix. Strategic Timing More Than 77% of Annual Sports Tourism Room Nights are Consumed Outside of Peak Demand Period (Q3). Events Can Be a Valuable Incremental Addition to Holiday Weekends, and Fringe Demand Periods. Many Events in Transient Low Demand Periods.

Sports Tourism: Two Track Strategy Two Track Strategy for Long-term (40 year) Impact Track One: Current Hotel Meeting Sales Model 50K Room Nights of Repeat/Traditional Business Surf Cup, Fastpitch Softball, USTA Girls 16-18, Elite Soccer 20K Room Nights New Business Indi Hoop Middle School Basketball, Adrenaline Lacrosse, Track Two: Major Event Cultivation (Convention Booking Model) Add 35K to 70K Room Nights Annually Comprehensive Bid Package Required CONNECT Sports Marketplace (6K) USA Taekwondo National Championships (12K) North American Chinese Invitational Volleyball (4K) Quidditch National Cup (5K) Copa America Centario (30K)

Sports Tourism: Sales & Marketing Sports Events & Meetings: Direct Expenses A1.2 Personnel Salaries, Wages, Benefits= $271,342 A1.2 Outbound Sales Development = $ 69,340 A1.2 Inbound Sales Development= $ 31,860 A1.2 Dues, Subscriptions & Memberships= $ 1,500 A1.4 Group Meeting Direct Marketing= $ 25,000 TOTAL= $399,042 Major Event Competitive Bid Package Support Fill Room Night Pipeline with Future Major Events Rights Fees, Venue Subsidy, Municipal Fees, Local Mgr. Opportunity/Catastrophe Set-aside for Negotiations Provides for a Proactive Sales Approach/Multi-year Goal Becomes a Future Expense Upon Going Definite

Sports Tourism: Long-term Success Elite Soccer National Championships June ,000 Room Nights Elite Soccer National Championships June ,000 Room Nights Breeders' Cup Thoroughbred Championships November ,000 Room Nights NCAA Men's Basketball Tournament Rounds 2 & 3 March ,000 Room Nights National Association of Sports Commissions April ,500 Room Nights (Event Rights Holders)