R E S O N A N C E C O . C O M @ C R FA I R

TITLE TEXT

RESONANCE

HELLO DMMOS! The Future of Destination Marketing Organizations

R E S O N A N C E C O . C O M @ C R FA I R

ABOUT US

Resonance Consultancy is a global advisor on real estate, tourism and economic development for countries, cities and communities around the world.

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R E S O N A N C E C O . C O M @ C R FA I R

PLACES ARE OUR PASSION

R E S O N A N C E C O . C O M @ C R FA I R

R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M @ C R FA I R

PLACES CREATE INSPIRATION

R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M @ C R FA I R

PLACES CREATE ENERGY

R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M @ C R FA I R

PLACES CREATE CONNECTIONS

R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M @ C R FA I R

PLACES CREATE PROSPERITY

R E S O N A N C E C O . C O M @ C R FA I R

RECENT PROJECTS

• Vancouver Tourism Master Plan • Cincinnati Destination Development Strategy • Aruba Tourism Authority Strategic Business Plan • Ireland South & East Brand Strategy • Tulsa Destination Development Strategy • Portland Tourism Master Plan • Bermuda Destination Assessment • Calgary Urban Revitalization • U.S. Virgin Islands Brand Strategy • Four Seasons Hotels & Resorts Developments

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R E S O N A N C E C O . C O M @ C R FA I R

AGENDA

• Key Trends • Key Threats • The Meaning of Life (For a DMO) • The Path to Becoming a DMMO • Measuring Destination Quality

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R E S O N A N C E C O . C O M @ C R FA I R

TOURISM IS ONE OF THE WORLD’S FASTEST GROWING INDUSTRIES

R E S O N A N C E C O . C O M @ C R FA I R

R E S O N A N C E C O . C O M @ C R FA I R

TOURISM FORECAST

Source: UNWTO Tourism Forecast

R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M

BUT THE FUTURE LOOKS QUITE DIFFERENT THAN THE PAST

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R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M @ C R FA I R

WHY?

R E S O N A N C E C O . C O M @ C R FA I R

R E S O N A N C E C O . C O M @ C R FA I R

CONSPICUOUS LEISURE

R E S O N A N C E C O . C O M @ C R FA I R

R E S O N A N C E C O . C O M @ C R FA I R

DESIRABLE LUXURIESSmartphone

Freedom to work from home

Vacation home in the mountains/beach

Extended time off work

Taking exotic vacations

Tablet/E-Reader

Gourmet kitchen at home

Owning your own business

Wife/husband that is able to stay at home with kids

Apartment in major metropolitan city

Home Theater

Luxury Swimming Pool

Sending your children to private schools

Home in private/gated community

Owning an expensive car

Fine jewelry and/or expensive watch 20%

20%

20%

22%

22%

22%

23%

24%

25%

33%

38%

38%

39%

40%

42%

50%

10%

11%

12%

14%

14%

13%

15%

17%

16%

21%

25%

22%

26%

26%

30%

34%

10 - Extremely desirable 9Source: Resonance 2016 Portrait of the U.S. Luxury Traveler

R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M @ C R FA I R

ASIA

R E S O N A N C E C O . C O M @ C R FA I R

R E S O N A N C E C O . C O M @ C R FA I R

CHINESE OUTBOUND TRAVEL

0

50

100

150

200

2009 2010 2011 2012 2013 2014 2015 2020 P

Chinese Outbound Travelers (millions) Chinese Outbound Travelers (growth)

8.0%

12.2%

19.5%

7.7%

18.4%

22.4%

20.4%

4.0%4.0%

20.4%

22.4%

18.4%

7.7%

19.5%

12.2%

8.0%

Source: CNTA

R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M @ C R FA I R

CHANGING DEMOGRAPHICS

R E S O N A N C E C O . C O M @ C R FA I R

R E S O N A N C E C O . C O M @ C R FA I R

POPULATION AGED 65+% of population aged 65+

10%

15%

20%

25%

Canada Germany Poland Spain United Kingdom United States

2005 2010 2015

Source: UN Data

R E S O N A N C E C O . C O M @ C R FA I R

DEFINITION OF RETIREMENT IN U.S.

A time to trave and explore new places

A time to slow down and enjoy life

More time to spend with family and friends

A time to explore different interests

A time to volunteer for causes I care about

A time to live dreams

A time to make do with what I have

A time to continue working/living as always

A time to start a new business 2%

12%

24%

28%

35%

53%

55%

64%

66%

Source: Resonance 2015 Portrait of the U.S. Retiree Traveler

R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M @ C R FA I R

LOCALISM

R E S O N A N C E C O . C O M @ C R FA I R

R E S O N A N C E C O . C O M @ C R FA I R

Mac

ro M

arke

t Sha

re

70%

75%

80%

85%

90%

95%

100%

Cra

ft an

d Im

ports

Mar

ket S

hare

0%

5%

10%

15%

20%

1985 1990 1995 2000 2005 2010 2015

U.S. BEER MARKET SHARE

Craft

Imports

Macro

Source: U.S. Brewers Association

R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M @ C R FA I R

SHARING ECONOMY

R E S O N A N C E C O . C O M @ C R FA I R

R E S O N A N C E C O . C O M @ C R FA I R

TOTAL AIRBNB LISTINGS

2009 2010 2011 2012 2013 2014 2015 2016

3,000 50,000 120,000

300,000

550,000

1,000,000

2,300,000

Source: Airbnb

R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M @ C R FA I R

AIR ROUTE DEVELOPMENT

R E S O N A N C E C O . C O M @ C R FA I R

R E S O N A N C E C O . C O M @ C R FA I R

4.0 B

4.5 B

5.0 B

5.5 B

6.0 B

6.5 B

7.0 B

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

AIR TRAVEL PASSENGER-KM

Source: ICAO

R E S O N A N C E C O . C O M @ C R FA I R

THESE TRENDS ARE DRIVING A DISPROPORTIONATE NUMBER OF TRAVELLERS TO CITIES

R E S O N A N C E C O . C O M @ C R FA I R

R E S O N A N C E C O . C O M @ C R FA I R

CITY TRIPS SOARED 82% BETWEEN 2007 AND 2014 TO REACH 22% OF ALL HOLIDAYS

R E S O N A N C E C O . C O M

Source: World Travel Monitor

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R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M

WHY CITIES?

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R E S O N A N C E C O . C O M @ C R FA I R

TIMES SQUARE 1983

R E S O N A N C E C O . C O M @ C R FA I R

R E S O N A N C E C O . C O M @ C R FA I R

TIMES SQUARE 2013

R E S O N A N C E C O . C O M @ C R FA I R

R E S O N A N C E C O . C O M @ C R FA I R

NEW YORK CITY TOURISM GROWTH

Crim

e Ra

te

0

2,500

5,000

7,500

10,000

Visi

tors

in m

illio

ns

0

15

30

45

60

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

TOTAL VISITORS TOTAL CRIME RATE

Source: NYC & Company / U.S. Census Bureau

R E S O N A N C E C O . C O M @ C R FA I R

TYPES OF FUTURE VACATIONS FOR U.S. RETIREES

Visit to a major metropolitan city

Vacation with friends

Cruise

Visit to a beach resort

Multi-generational vacation

Quiet countryside holiday

Visit to a mountain resort

Family vacations with kids

Combining business trip with leisure vacation

Other 23%

4%

10%

11%

14%

21%

28%

29%

30%

33%

Source: Resonance 2015 Portrait of the U.S. Retiree Traveler

R E S O N A N C E C O . C O M @ C R FA I R

TYPES OF FUTURE VACATIONS FOR U.S. MILLENNIALS

Visit to a beach resort

Visit to a major metropolitan city

Family vacation with kids

Vacation with friends

Multi-generational vacation

Cruise

Visit to a mountain resort

Quiet countryside holiday

Combining business trip with leisure vacation

Other 6%

19%

19%

23%

26%

27%

40%

41%

42%

47%

Source: Resonance 2015 Portrait of the U.S. Millennial Traveler

R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M

POTENTIAL THREATS TO TOURISM GROWTH

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R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M

POLLUTION

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R E S O N A N C E C O . C O M @ C R FA I R

Annu

al A

vera

ge P

M 2

.5 le

vels

(µg/

m3)

0

35

70

105

140

Annu

al In

boun

d Vi

sito

rs (m

illio

ns)

0

2

3

5

6

2008

2009

2010

2011

2012

2013

2014

BEIJING ANNUAL INBOUND VISITORS BEIJING ANNUAL AVERAGE PM 2.5 CHINA PM 2.5 STANDARD U.S. PM 2.5 STANDARD

BEIJING ANNUAL VISITORS

Source: U.S. Department of State Data

R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M

TERRORISM

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R E S O N A N C E C O . C O M @ C R FA I R

10,000,000

17,000,000

24,000,000

31,000,000

38,000,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Foreign Arrivals Foreign Arrivals Change

-6.2%

17.8%

12.8%

2.8%5.7%

9.9%

1.0%

9.8%

5.5%

-1.6%

-30.1%

ISTANBUL FOREIGN ARRIVALS

1st Terrorist Attack

Source: Kultur

R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M

PEAK GLOBALIZATION

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R E S O N A N C E C O . C O M @ C R FA I R

TOURISTS

R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M @ C R FA I R

R E S O N A N C E C O . C O M @ C R FA I R

VENICE BARCELONAAMSTERDAM

R E S O N A N C E C O . C O M @ C R FA I R

ASHEVILLE SAVANNAH SONOMA

R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M

“THE FUTURE IS ALREADY HERE – IT’S JUST NOT VERY EVENLY DISTRIBUTED.” - William Gibson

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R E S O N A N C E C O . C O M @ C R FA I R

THE GOALS THAT DMOS HAVE HISTORICALLY PURSUED NOW THREATEN THEIR FUTURE RELEVANCE AND EVEN EXISTENCE.

R E S O N A N C E C O . C O M @ C R FA I R

R E S O N A N C E C O . C O M @ C R FA I R

1. THE MEANING OF LIFE (FOR A DMO)

As tourism continues to grow DMOs must shift resources from marketing to management to balance the interests and benefits of tourism with those of the local communities they serve.

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R E S O N A N C E C O . C O M @ C R FA I R

2. THE MEANING OF LIFE (FOR A DMO)

As locals, visitors and digital channels become the primary means of place-based communication, DMOs must shift from traditional marketing to management to promote their destination.

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R E S O N A N C E C O . C O M @ C R FA I R

3. THE MEANING OF LIFE (FOR A DMO)

DMOs are the only organization within a city structure that has the capabilities, capacities and funding to focus on developing and managing the experiential quality of a city.

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R E S O N A N C E C O . C O M @ C R FA I R

“DESTINATION MANAGEMENT ORGANIZATIONS CO-ORDINATE THE MANAGEMENT OF ALL THE ELEMENTS THAT MAKE UP A DESTINATION (ATTRACTIONS, ACCESS, MARKETING, HUMAN RESOURCES, IMAGE AND PRICING). IT TAKES A STRATEGIC APPROACH TO LINK-UP VERY SEPARATE ENTITIES FOR THE BETTER MANAGEMENT OF THE DESTINATION. “

R E S O N A N C E C O . C O M

Source: UNWTO

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R E S O N A N C E C O . C O M @ C R FA I R

THE PATH TO BECOMING A DMMO

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1. Engage the community in the planning process

2. Distribute the impact and benefits of tourism to the wider region

3. Develop quality of life enhancing product and programming

4. Organize to support and develop these initiatives

5. Manage and monitor the guest experience

R E S O N A N C E C O . C O M @ C R FA I R

1. ENGAGE THE COMMUNITY

@ C R FA I R

• 2,000+ locals participated in Vancouver Tourism Masterplan process

• Identified same top 2 key issues as industry:

- Late night transportation

- Liquor laws and regulations

R E S O N A N C E C O . C O M @ C R FA I R

2. DISTRIBUTE THE BENEFITS & IMPACTS

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• Vancouver Neighbourhood Marketing Council

• New York Neighbourhood x Neighbourhood

• Visit Amsterdam, See Holland

R E S O N A N C E C O . C O M @ C R FA I R

3. DEVELOP QUALITY OF LIFE ENHANCING PRODUCTS

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• Vancouver Canada Line Subway

• New York High Line

• Cleveland Festival & Event Strategy

• San Diego Waterfront Redevelopment

R E S O N A N C E C O . C O M @ C R FA I R

3. ORGANIZE TO SUPPORT & DEVELOP

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• Chief Experience Officer

• Vice-President Destination Development

• Vice-President Community Affairs

• Director

• Tourism Energy Specialist

R E S O N A N C E C O . C O M @ C R FA I R

5. MANAGE & MONITOR DESTINATION EXPERIENCE

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• Visitor Satisfaction/Net Promoter Score

• Resident Satisfaction

R E S O N A N C E C O . C O M @ C R FA I R

HOW DO YOU MEASURE & MONITOR THE EXPERIENTIAL QUALITY OF A DESTINATION?

R E S O N A N C E C O . C O M @ C R FA I R

R E S O N A N C E C O . C O M @ C R FA I R

SOCIAL MEDIA PROVIDES A NEW SOURCE OF DESTINATION INSIGHTS & INTELLIGENCE

R E S O N A N C E C O . C O M @ C R FA I R

R E S O N A N C E C O . C O M @ C R FA I R

LondonParis

IstanbulSaint Petersburg

MadridBarcelona

BerlinMilan

PragueAmsterdam

MunichHamburgBrussels

DublinNaples

WarsawBucharestBudapest

OsloHelsinki

StuttgartSofia

Gdansk

0 5,000 10,000 15,000 20,000 25,000

7121,070

1,3141,4601,527

1,8671,926

2,3422,9102,980

3,4433,5223,576

4,3856,564

7,4058,329

9,82610,004

10,98614,421

16,89421,031

TOTAL NUMBER OF QUALITY EXPERIENCES

R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M

CULTURE

@ C R FA I R

R E S O N A N C E C O . C O M @ C R FA I R

TOP 10 CITIES FOR CULTURE

1. LONDON

2. SAINT PETERSBURG

3. PARIS

4. PRAGUE

5. BERLIN

6. MADRID

7. BARCELONA

8. AMSTERDAM

9. ISTANBUL

10. MILAN

R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M

ENTERTAINMENT

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R E S O N A N C E C O . C O M @ C R FA I R

TOP 10 CITIES FOR ENTERTAINMENT

1. LONDON

2. PARIS

3. BARCELONA

4. PRAGUE

5. MADRID

6. ISTANBUL

7. BERLIN

8. AMSTERDAM

9. SAINT PETERSBURG

10. MILAN

R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M

SIGHTSEEING

@ C R FA I R

R E S O N A N C E C O . C O M @ C R FA I R

TOP 10 CITIES FOR SIGHTSEEING

1. LONDON

2. SAINT PETERSBURG

3. PARIS

4. BARCELONA

5. ISTANBUL

6. PRAGUE

7. BERLIN

8. MADRID

9. AMSTERDAM

10. BUDAPEST

R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M

SPORTS & ADVENTURE

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R E S O N A N C E C O . C O M @ C R FA I R

TOP 10 CITIES FOR SPORTS & ADVENTURE

1. BARCELONA

2. AMSTERDAM

3. LONDON

4. BERLIN

5. PARIS

6. ISTANBUL

7. PRAGUE

8. SAINT PETERSBURG

9. BUDAPEST

10. DUBLIN

R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M

CULINARY

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R E S O N A N C E C O . C O M @ C R FA I R

TOP 10 CITIES FOR CULINARY

1. LONDON

2. PARIS

3. ISTANBUL

4. SAINT PETERSBURG

5. MADRID

6. BARCELONA

7. BERLIN

8. MILAN

9. PRAGUE

10. AMSTERDAM

R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M @ C R FA I R R E S O N A N C E C O . C O M

LODGING

@ C R FA I R

R E S O N A N C E C O . C O M @ C R FA I R

TOP 10 CITIES FOR LODGING

1. PARIS

2. ISTANBUL

3. LONDON

4. PRAGUE

5. BERLIN

6. BARCELONA

7. MADRID

8. SAINT PETERSBURG

9. MUNICH

10. MILAN

R E S O N A N C E C O . C O M @ C R FA I R

BUT WHICH CITIES OFFER THE MOST QUALITY EXPERIENCES PER VISITOR?

R E S O N A N C E C O . C O M @ C R FA I R

R E S O N A N C E C O . C O M @ C R FA I R

TOTAL NUMBER OF QUALITY EXPERIENCES PER 100,000 BEDNIGHTS

Saint PetersburgIstanbul

MilanLondon

BarcelonaMadrid

BrusselsPragueDublin

GdanskBucharest

ParisStuttgart

BerlinAmsterdam

WarsawOslo

HamburgMunichHelsinki

BudapestNaples

Sofia

0 50 100 150 200 250 300 350 400

2434

495051

565859

646769

7679

8888

99103

112118

125126

138354

R E S O N A N C E C O . C O M @ C R FA I R

SAINT PETERSBURG

CULTURE

ENTERTAINMENT

SIGHTSEEING

SPORTS & ADVENTURE

CULINARY

LODGING

R E S O N A N C E C O . C O M @ C R FA I R

PRAGUE

CULTURE

ENTERTAINMENT

SIGHTSEEING

SPORTS & ADVENTURE

CULINARY

LODGING

R E S O N A N C E C O . C O M @ C R FA I R

PARIS

CULTURE

ENTERTAINMENT

SIGHTSEEING

SPORTS & ADVENTURE

CULINARY

LODGING

R E S O N A N C E C O . C O M @ C R FA I R

BUDAPEST

CULTURE

ENTERTAINMENT

SIGHTSEEING

SPORTS & ADVENTURE

CULINARY

LODGING

R E S O N A N C E C O . C O M @ C R FA I R

BRUSSELS

CULTURE

ENTERTAINMENT

SIGHTSEEING

SPORTS & ADVENTURE

CULINARY

LODGING

R E S O N A N C E C O . C O M @ C R FA I R

AMSTERDAM

CULTURE

ENTERTAINMENT

SIGHTSEEING

SPORTS & ADVENTURE

CULINARY

LODGING

R E S O N A N C E C O . C O M @ C R FA I R

BERLIN

CULTURE

ENTERTAINMENT

SIGHTSEEING

SPORTS & ADVENTURE

CULINARY

LODGING

R E S O N A N C E C O . C O M @ C R FA I R

HELSINKI

CULTURE

ENTERTAINMENT

SIGHTSEEING

SPORTS & ADVENTURE

CULINARY

LODGING

R E S O N A N C E C O . C O M @ C R FA I R

STUTTGART

CULTURE

ENTERTAINMENT

SIGHTSEEING

SPORTS & ADVENTURE

CULINARY

LODGING

R E S O N A N C E C O . C O M @ C R FA I R

MILAN

CULTURE

ENTERTAINMENT

SIGHTSEEING

SPORTS & ADVENTURE

CULINARY

LODGING

R E S O N A N C E C O . C O M @ C R FA I R

DUBLIN

CULTURE

ENTERTAINMENT

SIGHTSEEING

SPORTS & ADVENTURE

CULINARY

LODGING

R E S O N A N C E C O . C O M @ C R FA I R

WARSAW

CULTURE

ENTERTAINMENT

SIGHTSEEING

SPORTS & ADVENTURE

CULINARY

LODGING

R E S O N A N C E C O . C O M @ C R FA I R

GDANSK

CULTURE

ENTERTAINMENT

SIGHTSEEING

SPORTS & ADVENTURE

CULINARY

LODGING

R E S O N A N C E C O . C O M @ C R FA I R

THE SHIFT FROM MARKETING TO MANAGEMENT BEGINS WITH MEASURING AND MONITORING THE EXPERIENTIAL QUALITY OF YOUR DESTINATION

R E S O N A N C E C O . C O M @ C R FA I R

R E S O N A N C E C O . C O M @ C R FA I R

DESTINATION BENCHMARKING

Resonance Consultancy has collected an analyzed experiential data for more than 300 cities around the world.

@ C R FA I R

R E S O N A N C E C O . C O M @ C R FA I R

TO LEARN MORE…

Resonance Consultancy Vancouver | New York

www.resonanceco.com @resonanceco

Chris Fair, President cfair@resonanceco.com @crfair

R E S O N A N C E C O . C O M @ C R FA I R

THANK YOU

Resonance Consultancy Vancouver | New York

www.resonanceco.com @resonanceco

Chris Fair, President cfair@resonanceco.com @crfair

www.slideshare.net/chrisfair