1. New Mexico Tourism Department Strategic Plan 2011/2012 Action Items

2. Summing Up the Research  Tourism is a critical economic driver for the state  Contributing $5.5B to the economy, $770mm in Tax Receipts  Accounting for over 55,000 jobs  There is significant potential upside  Currently 36-38th in terms of states people are visiting  1% of Domestic Travel Market  ~32% of visitors are just passing through (vs. 16% for our 4 corner neighbors)  We suffer from low awareness and damaging misperceptions  If we don’t proactively make changes, things will get worse  In 12 years, nearly ¼ of our visitors will have expired or stopped traveling  Average trip spend in NM continues to decline and is below the national average

3. A New Day, A New Approach  We will move from a tourism service agency to a tourism generating agency  We will focus on fewer, bigger things and do more with less  We will elevate our game and expect more from the everyone we work with – good enough is not good enough

4. We Have Lofty Goals  NMTD Vision: Become the fastest growing leisure travel destination in the U.S. Meet the needs of the industry Business Objective: Accelerate NM tourism, driving unprecedented revenue growth and occupancy rates By meeting the needs of the traveler Marketing Objective: Make New Mexico a primary travel destination by giving “Venturesome” travelers compelling reasons to choose NM as their next great travel experience

5. 1.) Build a strong, magnetic brand 2.) Unify and lead the industry 3.) Ramp up the rigor 4.) Block and Tackle New Mexico Tourism Department Strategic Planks

6. How Will We Build a Magnetic Brand?  DEFINE the brand and consumer  GENERATE awareness  CONVERT trips*  FUEL advocacy * Primarily the responsibility of specific DMOs and partner entities

7. Key 2011/2012 Action Items: Build the Brand 1.) Define the brand and consumer  Work sessions - wide range of perspectives from the broadly defined industry  Research - quantitative and qualitative  Longwoods deep dive, focus groups in Chicago, LA, Houston, and ABQ Leading to a tight positioning statement To travelers with an adventurous spirit and thirst for authenticity, New Mexico is the destination that feeds the soul because it offers adventures steeped in a rich culture.

8. Our Passionate, NM Brand Lovers Appear to be a Strong Fit for the Plog “Venturer” Psychographic Traveler Profile* Characteristics:  Self-confident  A leader  Intellectually curious  Quick decision-making  Desire to explore ideas and places  Active and energetic  Spend discretionary income more readily  Rely on their own judgment  Prefer varying activities & challenges Travel Behaviors:  Travel more frequently  Spend more per day  More likely to travel via air  Prefer unusual, underdeveloped destinations that have retained their native charm  Accept unconventional accommodations as an integral part of a unique vacation experience  Prefer to participate in local customs and habits and tend to avoid those that are staged for tourists.  Tend to seek new destinations each year to add to their treasure of rich experiences. 8 *Based on Plog Traveler Personality Type model (40 years of scientifically validated travel research) Source: TNS/Plog Research, 2001.

9. To Better Understand This Important Psychographic Target, We Created a Custom Venturer Attitudinal Profile Based on Available TNS Measures 9 “I frequently search magazines and websites for information about travel destinations and tourism operators I'm interested in” “I love hunting out the newest travel experiences before anyone else catches on to them” “When I find a new travel destination or tourism operator that I really like I have to tell others all about it” “I love to relive my travel experiences by discussing them with other people” “My family and friends often ask my advice on travel matters” “I often go out of my way to find travel and tourism operators that offer really genuine, authentic experiences” “I am prepared to pay more to visit places or use operators that offer something really original” Proactive, information seeker Early adopter Opinion leader Invests in the extraordinary Attitudinal Profile Source: Katie Connolly Assoc. custom analysis of Plog Research and TNS attitudinal variables, 2010

10. 10 Demographic Profile More likely to be: Aged 18-44 Never married or currently married From a major metropolitan city (especially Los Angeles, San Francisco, Miami, Chicago or New York) $75K+ HH income The Result Was a Clearer Picture of the “Venturer” in Terms of Key Demographic Dimensions... Detailed analysis of aggregate fit with Venturer profile by demographic variable in appendix Source: Katie Connolly & Associates, LLC Custom Venturer Analysis, 2011; TNS Travel Data 2008-2010

11. Our Cumulative Consumer Learning, Along With Recent Qualitative Research, Led to These Hypothesized Triggers & Barriers to Choosing NM as a Travel Destination TRIGGERS  Un-processed, authentic natural and cultural vacation experiences  Outdoor sports/recreation (“stuff to do”)  Beautiful landscapes  Interesting historical sites and architecture  Unique local cuisine  Not “touristy” BARRIERS  Not top of mind (low visibility/awareness)  Don’t know what to do/nothing to do  Hard to get to  Hot & dry weather  Lack of quality & variety in food and accommodations  Fewer recreational activities (vs. Colorado) 11 Source: KCA, LLC Situation Analysis, 2011; NM Branding Online Survey, CRC 2010; Saatchi Positioning Qualitative, June 2011.

12. Key 2011/2012 Action Items: Build the Brand  DEFINE the brand and consumer  GENERATE Awareness  Find the right partners RFP for Advertising agency issued 9/2/11, finalized 12/15/11 RFP for PR firm to be issued 12/15/1, finalized 2/1/12  Roll out new campaign:April 2012

13. Key 2011/2012 Action Items- Build the Brand  DEFINE the brand and consumer  GENERATE Awareness  CONVERT trips  Issue RFP for new website 12/1/11 SIMPLE, STUNNING and SELL To include an app/mobile presence and booking agent

14. Key 2011/2012 Action Items - Build the Brand  DEFINE the brand and consumer  GENERATE Awareness  CONVERT trips  FUEL advocacy - get others spreading the word about our brand  Advocacy Program $3.2B over 3 years  NM Magazine New editor, new publisher, new organizational structure

15. Celebrating 90 Years! Refocused Mission: Celebrate the best the state has to offer in ways that benefit readers and industry partners, and help grow awareness of the great travel opportunities here, our adventures steeped in culture! Improved Covers and Content Results: FY’12 Revenue up 8.7% ($432,773 vs. $398,189) and Paging up 33.9% (111.88 vs. 83.58) vs. YAGO Jan’12 Centennial Issue Revenue up 47% ($51,248 vs. $34,866) and Paging up 67% (14.81 vs. 8.87) vs. YAGO New Mexico Magazine

16. 1.) Build a strong, magnetic brand 2.) Unify and lead the industry 3.) Ramp up the rigor 4.) Block and Tackle New Mexico Tourism Department Strategic Planks

17. How Will We Unify and Lead the Industry?  SPEAK with one voice  CREATE scale and synergy  INSPIRE product development

18. Key 2011/2012 Action Items – Unify and Lead  SPEAK with one voice  Develop brand book-rolled out today!  Regional Marketing changes Conducted a regional summit in September to begin sharing ideas and create a sense of state-wide marketing unity.  Build an industry website to keep us all on the same voice- launching this week! We will give updates on deadlines, happenings, research etc... Site will provide an outlet for the industry to give ideas and feedback to the department NOTE: Only as good as it gets used! PLEASE REACH OUT TO MIKE STAUFFER WITH SUGGESTIONS

20. Key 2011/2012 Action Items- Unify and Lead  SPEAK with one voice ✓  CREATE scale and synergy  Co-op Rolled out changes ✓ Evaluated presentations and reviewed proposals ✓ Awards granted wk of 11/4 Kick off next cycle date – Spring 2012  Changed approach to trade shows  Ad Partnership

21. Key 2011/2012 Action Items – Unify and Lead  SPEAK with one voice ✓  CREATE scale and synergy ✓  INSPIRE product development  Indian Tourism On going meetings with tribal officials to understand marketing and promotional needs. Implemented the first Tourism Department organized Native American information booth at the New Mexico State Fair.  Clean and Beautiful Awarded $596,000 in grant funding to 56 communities across the state. Conducted two administrative statewide workshops for grant administration covering expectations, reimbursement, and record keeping procedures.  Sports Authority Re-evaluated approach based on limited budget Creating a statewide adventure expo, “New Mexico Active” to be held March 2012. Ski and Tee promotion during New Mexico Bowl.

22. 1.) Build a strong, magnetic brand 2.) Unify and lead the industry 3.) Ramp up the rigor 4.) Block and Tackle New Mexico Tourism Department Strategic Planks

23. How Will We Ramp Up the Rigor?  ENABLE informed decisions upfront  MONITOR and adjust course accordingly  VALIDATE our impact

24. Key 2011/2012 Actions Items - Ramp up the Rigor  Enable informed decisions upfront  Custom consumer research (i.e. focus groups) ✓  Best-in-class tourism data source (Longwoods Int’l) ✓  Monitor and adjust course accordingly  Pre and Post measurement to ensure continuous improvement (ex: Vacation Guide)  Issue Quarterly Reports- January 

25. Key 2011/2012 Actions Items- Ramp up the Rigor  Validate our impact  Meaningful & Accurate Performance Measures ROI Economic Impact Jobs

26. 1.) Build a strong, magnetic brand 2.) Unify and lead the industry 3.) Ramp up the rigor 4.) Block and Tackle New Mexico Tourism Department Strategic Planks

27. What Will We Do To Block & Tackle?  MAINTAIN drive market  AFFECT efficiency of international presence  MAXIMIZE short term promotions

28. Key 2011/2012 Actions Items - Block & Tackle  MAINTAIN drive market  I-40 Program – Partnering with Lamar Outdoor to utilize billboards along I-40, I-25, and I-10 to get people off the highways  Visitor Information Centers  AFFECT efficiency of international presence  Creative solutions to maintain presence (Japan, Europe)  MAXIMIZE short term promotions  Catch the Kid  $4-5Mm direct, over $10MM in media value  Centennial  Promotion being developed-will launch January 6th

29. Thank You!!!