Detroit News - Tourism Marketing Is Effective!

[Chamber of Commerce]

The Detroit News says tourism marketing is effective. The Beaver Island Chamber of Commerce markets Beaver Island.

Pure Michigan ads deliver increased tourist dollars and revenue for the state

Images of sparkling blue lakes, seas of sand and golden leaves dotting rolling hillsides will continue to lure tourists to Michigan as well as encourage residents to jump in the car and explore their own state â?? if the Legislature approves more funding for the Pure Michigan tourism campaign. And it should.

Even the most austere budget has to find money for marketing the state's resources.

In his first State of the State address, Gov. Rick Snyder asked the Legislature to allocate $25 million annually to the successful national and regional effort. Even in the face of a significant budget deficit, Snyder believes Pure Michigan is a good investment that brings in more than $2 in tax revenue for each dollar spent. Not a bad ratio.

Michigan's tourism industry is worth investing in, as it yields an estimated $15 billion annually, generating around $850 million in state taxes.

If the Legislature does provide the funding, the additional money will make life much easier to sustain the campaign. George Zimmermann, vice president of Travel Michigan, a business unit of the Michigan Economic Development Corp., says he's thrilled with the governor's pledge of support and looks forward to ending what has been a "budget rollercoaster" the past two years. The period of inconsistent, insufficient funding has left the tourism campaign with its hands tied.

Funding for the campaign has plummeted since 2009. The Pure Michigan budget for the 2011 fiscal year was reduced to $5.4 million, which had declined from $17 million in 2010 and $28 million in 2009. Last month, the ad campaign was pretty much over until the Legislature came through with a $10 million lifeline in its lame duck session.

With $25 million up front, Zimmerman says his staff will be able to plan the best advertising campaign possible â?? which includes landing ideal cable network spots â?? and highlight all four seasons in the state. Planning ahead will also provide better rates.
Pure Michigan boasts a proven track record of success and has captured the attention of many industry experts. Since it began in 2006, the campaign has won numerous awards, including making Forbes 2009 list of the top 10 tourism promotion campaigns.
And the ad campaign is more than just pretty images. According to a four-year study of Pure Michigan, $32 million in out-of-state summer advertising from 2006 to 2009 attracted 5 million new visitors who spent $1.3 billion. This produced $93 million for the state, largely through sales taxes.

A Detroit News poll earlier in the month found that many voters in Michigan oppose increased funding for Pure Michigan. Fifty-eight percent said no and 34 percent said yes. It's not too surprising that voters feel this way, given the weightier concerns facing the state. But the positive results merit the investment in promoting one of the state's key industries.

Advertising draws tourists, and tourism creates jobs. Snyder, whose priority is job creation, is wise to continue the Pure Michigan spending.

From The Detroit News

[tkludt]

Has the Chamber attempted to get BI more directly included in the Pure Michigan advertisements? I know the PM campaign is very effective outside of this state.

[AEW]

Tourism is great. But I think what the State and its people would be better served by becoming small business friendly in the manufacturing and trades area.

[Bob Robert]

Dear AEW:
I agree with you that if Michigan is to recover economically it will not be by tourism alone. I'm hoping that in the new Governor's support of Pure Michigan (PM) he is not over looking jobs and growth created by promoting our small businesses, manufacturing, construction, home sales and the trades. However to be fair to the Beaver Island Chamber of Commerce, its mission focus is on maximizing members' dues using electronic and print media to market Beaver Island as a tourist destination along with conservation of the natural beauty and resources. Their mission fits very well with the mission of PM which may indirectly, not directly, benefit economic development. The Detroit News article quotes alot of dollar numbers but no mention of job growth numbers. It appears that neither mission is directly focused on promotion of businesses that will support and sustain job growth.
It's the old adage of, "which comes first"? Do you promote tourism in hopes that a secondary benefit will be business growth and jobs or do you promote business growth that will create jobs supporting tourism and then run ads to attract tourists?

BR

[AEW]

It might sound kind of simple. But perhaps Lansing should stop trying to come up with ideas. Seems like they have been trying to spur economic growth since the dot com bubble burst. With nothing much to show for it, that's 11 years ago. So perhaps we should try a new approach. How about we look through the list of the other 49 States, many which are drawing in business like crazy and have much lower unemployment levels. Just ask them, Hey, How are you attracting business to your State? Then do the same thing.

[Chamber of Commerce]

House Bill 4160 Sets Pure Michigan Funding at Level Backed by Governor

LANSING, Mich. - Legislation to increase Pure Michigan funding to $25.4 million, as called for by Gov. Rick Snyder, was introduced today in the state House of Representatives.

House Bill 4160, sponsored by Rep. Wayne Schmidt, R-Traverse City, provides enough funding to allow Travel Michigan to place Pure Michigan ads on a nationwide and year-round basis to generate increased travel and tourism to Michigan. Independent research from multiple sources has quantified Pure Michigan ads return a profit to the state by generating far more in sales tax revenues and revenues to local businesses than the cost of the ads.

PRESS RELEASE FROM:

Steven Yencich, president of the Michigan Lodging & Tourism Association, noted Michigan State University researcher.

His research released in fall 2010 showed Pure Michigan ads were partly responsible for occupancy rates increasing at double the national average in summer 2010.