Herbert J. Malone, Jr., President/CEO

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1 Herbert J. Malone, Jr., President/CEO Gulf Shores & Orange Beach Tourism

2 Our Mission The mission i of Gulf Shores & Orange Beach Tourism is to market the Alabama Gulf Coast as a destination, thus enhancing the area s economy and quality of life for all residents.

3 Our Mission Marketing Leadership Product Service MarketingM k Guests Cities i Infrastructure Services Facilities

4 In the News

5 In the News

6 Shoreline Impact Beaches Slathered with Oil

7 So Many Issues... Shoreline Protection Vessels of Opportunity Clean up Claims Marketing

8 Role of the DMO Shoreline Protection Vessels of Opportunity Clean up Claims Marketing

9 Tourism s Impact in million guests $2.3 billion in visitor spending 40,000+ travel related jobs $915 million in wages and salary

10 Lodging Rentals & Market Share 2009 $1.1Billion % Loss from 2008 Baldwin Gulf Shores Bay Orange Beach Panama City $280 M 0.2 $227M % 20.0% Okaloosa Walton Santa Rosa Fort Walton Sandestin Escambia Navarre Destin Seaside Pensacola $22 M -1.3 $209 M -2.2 $262 M % 18.5% 23.1% 11.8% $134M -2.0 Source: Center for Business and Economic Development, Auburn University Haas Center for Business Research & Economic Development

11 Summer 2010 Forecast million guests $1 7 billion in direct visitor $1.7 billion in direct visitor spending

12 Estimating Impact

13 Core Markets Alabama Birmingham Huntsville Montgomery Georgia Atlanta Louisiana Baton Rouge New Orleans Mississippi Jackson Tennessee Memphis Nashville

14 Methods Advertising Online Banners Sliding billboards Video pre-roll Newspapers Strip ads on front page 1/2 pg 4C ads Website added value Radio Spots Daily video on their websites Television i Spots Events Public Relations Onsite TV and radio remotes Press trips Travel and news interviews

15 Methods Integrated Online Marketing Website enhancements and incorporation of social networking Facebook Twitter You Tube Texting Blogging User-generated content Incentives/Inducements Events Group incentive packages Attractions & concert tickets Restaurant gift cards

16 Our Message Honest Information From Authoritative Sources

17 Television We love Lucy

18 Integrated Social Marketing

19 Daily Videos

20 Facebook

21 Facebook

22 Facebook

23 Newspaper & Radio

24 Online

25 Online

26 Incentives & Local Support Waterville The Wharf

27 Incentives & Local Support The Wharf Concert Series Montgomery Gentry Steve Miller Band Sugarland Train John Mayer

28 Concerts

29 Sports Commission Added National Championship: NAIA Men s Soccer National Championship, November 2010 & 2011 Hosted a televised fishing Championship hi event: Inshore Fishing Association Redfish Tour Championship 2010 & 2012 Hosted 15 USSSA tournaments: Generating 19,242 room nights for the area

30 Sports Commission Increased room nights & spending Increased room nights by 52% Room Nights 23,193 34,898 Room Spending $3.5 M $5.4M Add. Spending $4.1 M $6.5 M Tourism Impact $7.6 M $11.9 M

31 Research

32 Research Three waves of research examining destination image Primary geographic markets & visitor demographics Two groups: Have inquired/visited: These participants were more likely to agree with positively worded statements, particularly those that dealt with beach cleanliness. General Population: p Were more likely to agree with negatively worded statements and seemed to be much more likely to believe untrue statements about the quality of Alabama beaches.

33 Research Key Issue: Beach and water cleanliness was the most important factor for respondents. Additionally, the most frequently given messages that participants needed to hear dealt with knowing the beach and water are clean. l

34 Results Website traffic: YTD 2.7 million visitors i 46% over last year June visits ii were up 131% 441,000 visitors to thebeachfacts.com Daily Videos up to 30,000 views each

35 Results Friends, fans & followers: Facebook Fans Sept 2009 Sept ,408 31, 838 (10,270 in March) Twitter followers 3,034 5,257

36 Reality May - August 2010 vs 2009 Lodging Revenue -41.5% Retail Sales -22.9%

37 Reality

38 Lodging g Revenues By County January August 2010 vs % Mobile 32.6% 30.0% Jackson, 25.8% 20.0% 0% 10.0% Harrison 7.6% 0.0% -10.0% Hancock -8.6% Escambia -5.9% Walton -8.7% Bay -2.2% -20.0% -30.0% Baldwin -23.5% Santa Rosa Okaloosa -18.4% -18.5%

39 Lodging g Revenues By County May August 2010 vs % 50.0% 47.8% Jackson 54.0% Mobile TOTAL -12.9% 40.0% 30.0% 20.0% 19.2% Harrison 10.0% 0.0% 2.1% Hancock -10.0% -20.0% Escambia -10.4% Walton -12.3% Bay -7.4% -30.0% -40.0% Baldwin -33.2% Santa Rosa Okaloosa -24.8% -24.1%

40 Lodging g Revenues By County May August 2010 vs $30.0 $20.0 $18.7 Mobile TOTAL -$98.88 M $10.0 $0.0 $0.135 Hancock $6.7 Harrison $5.2 Jackson Millio ons -$10.0 -$20.0 Santa Rosa Escambia -$3.2 -$7.3 Walton -$19.8 Bay -$9.5 -$30.0 -$40.0 Okaloosa -$31.4 -$50.0 -$60.0 -$70.0 Baldwin -$58.3

41 Moving Forward Issues & Challenges Financial Physical Scientific Emotional Perception

42 Moving Forward

43 Seafood Safety "I'm eating fish and shellfish caught in the open waters of the Gulf of Mexico. There should be no doubt that Gulf seafood is free from contamination from the BP/Deepwater Horizon incident and response, and is safe to eat. Charlie Henry, Acting Director of the NOAA Gulf of Mexico Disaster Response Center

44 Seafood Safety

45 Television Snapper season

46 Television Taylor style

47

48

49 Herbert J. Malone, Jr., President/CEO Gulf Shores & Orange Beach Tourism

Herbert J. Malone, Jr., President/CEO

Herbert J. Malone, Jr., President/CEO Herbert J. Malone, Jr., President/CEO Gulf Shores & Orange Beach Tourism Our Mission The mission i of Gulf Shores & Orange Beach Tourism is to market the Alabama Gulf Coast as a destination, thus enhancing

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