5 strategies to leverage tourism marketing for economic development

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Introducing Atlas

1.  Denver-based marketing services company, specializing in economic development

2.  Founded in 2001, with 30 employees

3.  Has worked with more communities than any other destination marketing services firm in the past 10 years: 160+ in 43 states and 6 countries

4.  Specialize in providing branding, marketing planning, digital marketing, and GIS enabled websites, all tourism and economic development

5.  Atlas Advertising is a results-based destination and economic development marketing firm that provides:

–  Results-based visitor attraction/engagement services designed for travel destinations–  National benchmarks for performance –  An arsenal of strategic tools and media relationships to leverage tourism for job creation,

economy stimulation and visitor attraction that generate specific results.

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•  Continue the Conversation: –  Follow us on Twitter: www.twitter.com/AtlasAd–  Tweet questions using hashtag #ASKATLAS–  Join High Performance Economic Development LinkedIn Group

•  View and share the slides with your colleagues: www.slideshare.com/wright0405

View the slides, continue the dialogue

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Your Webinar Hosts

Guillermo Mazier – VP, Strategic Accounts, Atlas Advertising–  Former economic developer and tourism marketer for the Costa Rican

Investment and Trade Development Board–  Managed economic development and tourism campaigs for Tortugero, CR–  Industry speaker, content strategy and digital marketing specialist

George Zimmerman– Chairman, Longwoods International USA Inc.–  Former VP of Travel at Michigan Economic Development Corporation–  Over 2 decades of experience in tourism destination marketing–  Helped operate a campaign that Forbes ranked among the top ten tourism

promotion campaigns worldwide

Rebecca Latham– Cabinet Secretary at New Mexico Tourism –  Former Director of Tourism and Economic Development for the Town of Red

River–  In 2013 Rebecca was named New Mexico’s Tourism Professional of the

Year–  Under her leadership the department is focused on building awareness and

driving travel to The Land of Enchantment through the New Mexico True campaign, which delivers a 7:1 ROI at the tax base level

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A National Perspective on place marketing

A Visitor

Repeat Tourist

A visitor’s $ impacts thecommunity’s economic

bottom line

Potential Workforce

Tourism $ driveBusiness growth in

the community

Drives residentpride in thecommunity

Move orstart a

business

Tourism Economies Can Increase Community Prosperity

The Role of Tourism and Economic Development

Creates a prosperous economy

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Why Your Community

Should Care About Tourism

as an Economic Driver?

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Tourism employment growth outpaces all other traded sectors combined (since 1998)

http://statistics.unwto.org/publication/sources-and-methods-labour-statistics-employment-tourism-industries-special-edition

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$1.5 trillion economic output from the travel and tourism industry in the United States

Source: https://www.ustravel.org/sites/default/files/page/2011/08/e_Power_Travel_Promotion1.pdf

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1- 18 Americans is employed, either directly or indirectly, in a travel or tourism-related industry

Source: http://www.bea.gov/newsreleases/industry/tourism/tournewsrelease.htm

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Economies of Scale Need Diversification

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How Municipal Organizations Are

Talking about the Tandem

1.0 PURPOSE The County of Prince George, Virginia is seeking Requests for Proposals (RRP) from firms that are interested, experienced and knowledgeable in preparing county-wide economic development and tourism plans.

2.0 BACKGROUND Prince George County, VA is located 28 miles south of Richmond, 89 miles west of Virginia Beach and 136 miles south of Washington DC. The transportation nexus within the county includes I-95, I-295, US Route 460, a Norfolk Southern mainline and Richmond International Airport is just 25 minutes away. Our community’s population is currently 35,725.

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How Municipal Organizations Are

Talking about the Tandem

Economic Development & Tourism planning is performed by the County of Prince George Economic Development Department located within County Administration. The Prince George County Board of Supervisors has authorized staff to update the vision and direction set forth in the 2007 Strategic Economic Development Plan. Development of this new strategy would include County Administration, the Industrial Development Authority, our county citizens, and local organizations with ultimate approval resting with the County Board of Supervisors.

3.0 STATEMENT OF NEEDS The purpose of the strategic economic development and tourism plan is to evaluate the current status of the local economy and chart a new direction for economic development and tourism within the County.

Tourism Marketing Powers

Economic Development

George Zimmermann

Chairman, Longwoods International USA

[email protected]

My Presentation

2/ Halo Magic Research demonstrates strong lift from destination promotion and visitation on both tourism AND economic development image.

1/ Case Study Developing a singular state brand for tourism and economic development.

Pure Michigan Case Study

ü  Not here to tell you what may or may

not work for you.

ü  Here to share how Pure Michigan happened and its results.

ü  Was not a straight line.

Pure Michigan Case Study

Four Keys to Pure Michigan

ü  A powerful brand that inspires confidence and produces results.

ü ROI data that proves effectiveness.

ü  Industry leadership and unity behind the data and the brand.

ü  Sufficient budget to promote the brand.

Pre-Pure Michigan Budget Declines

$8.0 $7.4

$6.4

$5.7 $5.7

3

4

5

6

7

8

9

2001 2002 2003 2004 2005

Mill

ions

2005: Rock Bottom

ü  Doing less every year, due to budget cuts.

ü  Demoralized, fragmented private sector.

ü  Business declines in middle of decade-long Michigan recession.

ü  Ranked 50th in hotel occupancy rate.

ü  One bright spot: got first advertising return on investment results for 2004 (Longwoods).

First ROI Data (2004)

ü MI spent $3.5 million on advertising.

ü Generated 990,000 trips to state.

ü  Those visitors spent $164 million.

ü  And paid $11.5 million in state taxes.

ü MI got $3.27 in taxes for each ad dollar spent.

Source: Longwoods ROI and Image Study

2006: Budget Increased to $13.2 Million

We created a new brand for the state:

Consistent Award-Winning Campaign

Ten Best Tourism Campaigns Ever

1. Las Vegas (“what happens here, stays here”)

2. Incredible India 3. New Zealand 4. Australia (Paul Hogan, 1980s) 5. Jamaica 6. Pure Michigan 7. Alaska (B4UDIE billboards, 2005) 8. Canada 9. Oregon 10. Virginia (is for Lovers)

Industry Rallies for Pure Michigan

Pure Michigan Budgets

$5.7

$13.2 13.20

$17.5

$28.0

$17.0

25.00 $25.0 25.00

$29.0 29.00

$0

$5

$10

$15

$20

$25

$30

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Millions

2010 Michigan Governor’s Race

MichaelFinney

Republican Rick Snyder makes Pure Michigan a campaign issue. He calls for consistent funding at $25 million per year. For a campaign created during the previous DEMOCRAT administration!

Snyder Team Cancels “Upper Hand” Campaign

Michael Finney

Michigan’s Marketing Brand

Pure Michigan: Off to the Races

Detroit Tigers

Agriculture

Kroger

Non-Profits

New Standard License Plate

Michigan = Pure Michigan

Pure Michigan Results 2006 – 2014

ü  Generated 22.4 million out-of-state trips to Michigan.

ü  Those visitors spent $6.6 billion at

Michigan businesses.

ü  They paid $459 million in state taxes on those trips, primarily sales tax.

ü Cumulative Pure Michigan ROI is $4.81.

Even with those Results

¤  Michigan tourism is under-marketed and under-funded

¤  In fact, every destination in America is under-marketed and under-funded, it’s only a question of by how much

¤  We are leaving money and jobs and taxes on the table

¤  Not a single destination is a top 100 U.S. advertiser, not even Las Vegas with a $110 million marketing budget

“Run Government Like a Business”

¤  Michigan Tourism Business ¤  $18.7 billion revenue (visitor

spending)

¤  $29 million marketing budget

¤  Progressive Insurance ¤  $18.2 billion revenue ¤  $595 million U.S. advertising

budget (20 times Michigan’s budget!)

“A surge in tourism from visitors outside of Michigan is helping increase demand for vacation

houses in the region, where the median home price is about a quarter of that in the Hamptons.”

Bloomberg, Sept. 14, 2012

It’s About More Than Tourism

Impact of Destination Campaigns on Economic

Development

The Halo Effect in Psychology

Edward L. Thorndike 1874 - 1949

The Halo Effect in Marketing

Method

¤  Recent large-scale online surveys of a representative sample of adults 18+ in advertising markets for seven U.S. states and two CVBs.

¤  Non-residents only included for analysis.

¤  Focus on image lift created by:

A.  Tourism ad awareness.

B.  Visiting the destination.

Sample North Dakota 893 Wisconsin 1,336 Ohio 1,006 North Carolina 1,601 New Mexico 6,032 Minnesota 1,698 Michigan 4,022

Portland OR 997 Lake Erie Shores & Islands OH

1,053

TOTAL 18,638

Method

¤  Respondents shown client ads across media channels to measure awareness.

Impact of Michigan’s 2014 Tourism Campaign on State’s Economic Development Image

0 10 20 30 40 50 60

A good place to live

A good place to start a career A good place to start a

business A good place to attend college

A good place to purchase a vacation home A good place to retire

Percent Who Strongly Agree

Aware Unaware

Base: National Out-of-State Residents

+81%

+59%

+50%

+41%

+100%

+79%

Impact of Visitation on Economic Development Image

Impact of Visitation on Michigan Economic Development Image

0 20 40 60 80

A good place to live

A good place to start a career

A good place to start a business

A good place to attend college

A good place to purchase a vacation home

A good place to retire

Percent Who Strongly Agree

Past 2 Yrs Never

Base: National Out-of-State Residents

+100%

+100%

+139%

+56%

+109%

+147%

The Power Combination

Tourism Marketing

Incremental Visitation

“A Good Place to Live”

65

70

146

0 50 100 150 200 250

Advertising

Visitation

Advertising Plus Visitation

Percent

% Image Lift Across Nine DMOs

“A Good Place to Start a Career”

79

77

163

0 50 100 150 200 250

Advertising

Visitation


Percent

% Image Lift Across 9 DMOs

“A Good Place to Start a Business”

79

96

194

0 50 100 150 200 250

Advertising

Visitation


Percent


“A Good Place to Attend College”

66

80

143

0 50 100 150 200 250

Advertising

Visitation


Percent


“A Good Place to Purchase a Vacation Home”

90

86

201

0 50 100 150 200 250

Advertising

Visitation


Percent


“A Good Place to Retire”

79

69

164

0 50 100 150 200 250

Advertising

Visitation


Percent


In Conclusion

ü  Tourism marketing attracts visitors and their money, creating jobs & paying taxes.

ü  Tourism marketing is destination branding for every purpose.

ü  Expand tourism marketing to promote economic growth.

Tourism Marketing Powers Economic Development

George Zimmermann

Chairman, Longwoods International USA

[email protected]

Economic Impact of Tourism in New

Mexico

•  Direct visitor spending in NM reached $6.1 billion in 2014 –  Up from $5.5 billion in 2011

•  Tourism in NM generated $610 million in state and local taxes in 2014 –  Up from $565 million in 2011

•  Direct visitor spending offset the average household tax burden by $810 –  Up from $747 in 2011

State-Wide Economic Impact

•  Nearly 89,000 jobs,

associated with income of $2.3 billion, were sustained by visitors to NM last year. –  Up from 86,000 in 2011

•  8.2 percent of all jobs in the

state (1 in 12) are sustained by visitor spending.

Print Ad

Digital Banners

Airport Dioramas

•  Sandoval County

•  Acoma Pueblo •  Aztec •  Bloomfield •  Gallup •  Angel Fire •  Grants •  Zuni Pueblo •  Deming •  Elephant Butte •  Las Cruces •  Lordsburg •  Mesilla

•  Grant County •  Socorro •  T or C •  Alamogordo •  Artesia •  Carlsbad •  Carrizozo •  Cloudcroft •  Clovis •  Portales •  Roswell •  Ruidoso •  Taos Ski

Valley

•  Los Alamos County

•  Eagle Nest •  Las Vegas •  Mora •  Raton •  Santa Rosa •  Tucumcari •  Abiquiu •  Chama •  Española •  Jemez Pueblo

•  Jemez Springs •  Los Alamos •  Madrid •  Red River •  Taos •  Taos Pueblo •  Bernalillo •  Edgewood •  Moriarty •  Mountainair •  Rio Rancho •  Silver City •  Questa

Commitment to Research

In the last year alone: •  Economic Impact of Tourism

(Tourism Economics)

•  ROI and Halo Effect (Longwoods)

•  Visitation Study (Longwoods)

•  Advertising Effectiveness Study (Longwoods)

•  Visitor Profile (Internal)

State of our Brand

STATE TOURISM BRAND

WE ARE HERE

SINGULAR BRAND &

PROACTIVE PARTNERSHIPS VISIBILITY

EXPANSION ORGANIC ADOPTION

INDUSTRY ADOPTION

LAUNCHED 2012 3:1 ROI

•  Co-‐Opera@ve Adver@sing

•  Event Sponsorships

•  Many True communi@es in 2014

•  Record breaking tourism growth

•  Use of brand beyond tourism (Flagship Foods, Mesilla Valley Trucking, etc.)

•  New data on tourism impact on economic dev image ra@ngs

2013/2014

2015 •  License plates •  Entry point signage •  True Cer@fied

program growth •  Co-‐Op adver@sing

and Event sponsorship expansion

•  Shared “image pale[e” and branding with state and local EDOs

•  Other proac@ve partnerships within state government and private sector

2016

2016

NM True Certified 505 Brand Salsas

Recommended Approach: License Plates

Entry Point Signage

CREATIVE EXAMPLE

5 Tips to Leverage Tourism Success for

Economic Development

1.  Determine POD and develop unified brand messaging around that

2.  Make assets available to stakeholders

3.  Take a strategic approach that includes research

4.  Develop disciples 5.  Drive conversations

“Deep. South.”

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5 Strategies to Leverage

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1. Marketing Strategy, Branding and

Campaign Development

•  Places leave the most lasting impressions, tangible or intangible, on human beings. And, human beings still make the decision where a company stays or relocates to and similarly where they want to vacation .

•  As the world becomes more competitive at a faster and faster rate, choices for visitors and companies get harder. Digital has become the game changer.

•  As companies work to locate where workforce is and as visitors seek out their next vacations, how your brand attracts and retains those audiences is that destination’s challenge of the next 25 years.

•  Having a brand gives you the tools to have a real dialogue about your place.

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Existing

Marketing

Marketing

Metrics

Conversations

Budgets and

Planning

Partnerships Digital

Audience

6 Things to Consider When Starting Content

Marketing for your DESTINATION

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2. Tourism as workforce attraction strategy

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3. Marketing of Local Assets (celebrities, products, and attractions to generate national awareness)

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4. Using Tourism as Targeted Industry

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1.  Participation in an Economic Development and Tourism Co-Op Marketing Opportunities

2.  Working with Economic Development and chambers orgs

3.  Aligning of tourism with an economic development messages

4.  Partnership with an academic institution

5. Collaborate to

maximize impact

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Guillermo Mazier 303.292.3300 x 232929 Broadway, Denver, CO 80203 [email protected]

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