Nogales Tourism program Business Plan Revitalizing Nogales Tourism Like it was! 11/7/2018

FOR THE CITY OF NOGALES, SONORA "MARKETING" PROJECT FOR THE CITY OF NOGALES, SONORA Promoter GARY W. LOGAN H. NOGALES, SONORA, MEXICO August 25, 2016 11/7/2018

Gary W. Logan Nogales Tourism involvement March 2006-Produced Nogales Doctors and Dentists Directory Website August 2014-Developed the Nogales Tourism Program November 2014-Produced the FREE Nogales Business Directory July 2015-Opened the Nogales Information Center December 2015-Presidente Enrique Pena Nieto asked me to further develop program for funding July 2016-Developed the Nogales Tourism Program Business Plan Gary W. Logan 11/7/2018

Rebuild Nogales Tourism OBJECTIVE: Rebuild Nogales Tourism Attract at least 800 visitors from Monday to Thursday each day. Attracting at least 2000-3000 visitors a day - Friday, Saturday and Sunday. There is economic benefit to all businesses that offer Tourism Merchandise and Services. All Festivals and Events are promoted for Tourists. Conventions and events are promoted for overnight stays. Night Clubs and Nightlife Entertainment Tourism is promoted. 11/7/2018

PROJECT INVESTMENT PRIMARY INVESTMENT: One year: $ 1,920,000 dollars. Monthly: $ 160,000 dollars. PRIMARY INVESTMENT: Start advertising and promotion for all businesses. Staff and Maintain a Tourism Office It can be Convention and Visitors Bureau - OCV 11/7/2018

REQUIREMENTS Obtain the Private Sector Support Obtain the Government Sector Support Obtain The Economic Resources Investing Economic Resources Publicize And Promote Nogales And The Metropolitan Area 11/7/2018

Tourists and visitors have Decrease since the Cartel Violence erupted in 2007 and 2008 In 2007: 7.7 Million pedestrians Now 2015: 3.1 million pedestrians 60% Decrease 11/7/2018

The Problems are Fixed it is time to invite the tourists! Nogales’ 2012 Study of Tourism problems have been resolved The Cartel Violence has dramatically subsided and the tourist police has been added. The Tourist Area infrastructure has been completely transformed. The City is ready to serve and provide for Arizona Tourists No body has told the 5.5 million potential tourists and visitors that all is well in Nogales, Sonora, Mexico! 11/7/2018

Amount of Investment Annual Investment: Monthly Investment: Advertising/Marketing/Publicity $1,800,000 Information Center $ 120,000 Total Investment $1,920,000 Monthly Investment: Advertising/Marketing/Publicity $ 150,000 Information Center $ 10,000 Total Investment $ 160,000 11/7/2018

Utilization of Investment Pays for Advertising, Marketing and Publicity in the Phoenix, Tucson and Sierra Vista tradition media; plus Social Media on the internet. Stories, Advertising and Publicity is expanded and amplified on the Website. http://NogalesMX.com Pays for the Nogales Information Center that provides a bilingual interface between the tourists, businesses and the media. Nogales Information Center

CONTACTING potential tourists AND visitors 5.5 million potential tourists 1.5% visitor goal We’ll reach them with 30 million impressions monthly! Reach them with broad reaching, quality media sources across television, radio, digital, social media, billboards and more. Media delivery examples:

For all Nogales Businesses providing Retail Services and/or products And Much, Much More! 11/7/2018

Return on $1.9 Million Investment in Number of Tourists and Visitors Projected at 714,000 People Projection is based upon the factors: New Positive Publicity New Invitations for Events New Promotion of Medical/Dental Services New Promotion of other City Businesses Projection is an increase of 24.5% of 2013 Pedestrian Border Crossers. Assumption includes that increase will be tourists and visitors, other crossers will remain the same. 11/7/2018

Return on $1.9 Million Investment in Tourist and Visitor Revenues Between $71 & $95 Million Assumptions for Revenues: Medical Services Revenues Average $583.82* per Medical Tourist = $65, Million USD In Addition: “A” Assumes $10** per person = $71 Million USD “B” Assumes $20** per person = $77 Million USD “C” Assumes $50** per person = $95 Million USD * Per Study done in Mexicali, B.C. ** No data is available, variables provided for comparison. 11/7/2018

Return on $1.9 Million Investment on Tourist and Visitor Tax Revenues Between $7.5 & $11.3 Million Assumptions for Revenues: Medical Services Revenues Average 10% on Gross Revenues** Other Tourist and Visitor Revenues charged at 16% VAT** ** No data is available, variables provided for comparison. Other taxes may apply from personal income taxes. 11/7/2018

Making Nogales Tourism Great Again Making Nogales Tourism Great Again! (FABRICACIÓN DE NOGALES TURISMO grande otra vez!) 11/7/2018

In a Nutshell: The Innovative Program The Program Requires an Investment of $1,920,000 USD in the first Year The money is Returned in Federal Taxes Between $7.5 & $11.3 Million the First Year The INNOVATIVE Marketing Program will create an additional annual flow of approximately 714,000 New Visitors and Tourists to Nogales! Create An influx of between $71 and $95 Million USD to the Nogales Economy! The Program Rebuilds Tourism and the Retail Economy All Retail Sectors of Services and Products are included The Program is Massive to counter the American Negativity of the past 8 years The Program is an Innovative, Permanent Solution that will continue to build upon itself! 11/7/2018

What about the State of Sonora? All the Benefits of the Revitalization of the Nogales Tourism and Retail Economy are a direct benefit to the State’s Economy The Focus of the plan is to The Marketing Plan is expandable to the State of Sonora The Advertising and Marketing costs will be passed directly to the State Agencies (No markup; a savings of about 75% over open rates) Independent businesses, working with the State, can advertise with about a 65% discount. Space will be available at all Trade Shows 11/7/2018

Nogales Tourism Program Support and Improvement HELP Nogales Tourism Program Support and Improvement Suggestions for Presentation Improvements Suggestions for Government Programs to Fund the Program Suggestions for Government Agencies and People to support the Nogales Tourism Program Please Complete and Sign the Acceptance and Support Form 11/7/2018

Questions ? 11/7/2018

Nogales Tourism Program Acceptance and Support Form I Accept and Support the Nogales Tourism Program as a viable program to revitalize the tourist, visitor businesses, along with the economy of Nogales, Sonora. I agree that the program is reasonable in cost to benefit and that it needs to be funded for immediate implementation. Name: ____________________________ Title: __________________________________________ Business Name: ___________________________________________________________________ Email Address: ___________________________________ Telephone: _____________________ ________________________________________________________ _____/_____/_______ Signature Date

Extra Slides with Graphs 11/7/2018

Retorno de la inversión DE $1. 92 Millones (36. 09 Millones Pesos Retorno de la inversión DE $1.92 Millones (36.09 Millones Pesos*) de los 714,000 turistas y visitantes Proyección se basa en los factores: Nueva publicidad positiva Nuevas invitaciones para Eventos Nueva Promoción de Médicos / Servicios Dentales Nueva promoción de otros negocios de la ciudad La proyección es un incremento de 24.5% de los peatones que cruzaron la frontera en 2013. Supuesto que incluye aumento será de turistas y visitantes, otros que cruzan seguirán siendo los mismos. * $1 USD = $18.80 Pesos MX$) 11/7/2018

RETORNO De $1.9 millones (36.09 Millones Pesos) de inversión en los ingresos de turismo y visitantes son entre $71 y $95 millones (1,334 y 1,786 millones pesos) Supuestos para los ingresos: Promedio de los ingresos del turismo médicos son $ 583.82*por Turismo Médico (10975 Pesos) "A" Asume $10 por persona ** "B" Asume $20 por persona ** "C" Asume $50 por persona ** * Según estudio realizado en Mexicali, A.C. ** No se dispone datos, variables previsto para comparación. 11/7/2018

Retorno de la inversión de $1 Retorno de la inversión de $1.9 millones en Los ingresos fiscales de Turistas y visitantes es Entre $7.5 y $11.3 millones (141 y 213 millones pesos) Supuestos para los ingresos: El promedio de los ingresos de servicios médicos son 10% sobre los ingresos brutos ** Otros ingresos del turismo y de los visitantes pagan al 16% de IVA ** ** No se dispone datos, variables previsto para comparación. Otros impuestos se podrán aplicar de Impuestos Sobre la Renta. 11/7/2018