November 23, 2024
Editorial

SPENDING ON TOURISM

January might seem an odd time to think about Maine’s tourism promotion, but it is now that promotion schemes are planned, markets targeted and advertising buys negotiated. The Maine Office of Tourism traditionally unveils its latest advertising campaign at the annual Governor’s Conference on Tourism, Feb. 12 at the Bangor Civic Center.

Regardless of how well-crafted the state’s “It Must Be Maine” campaign is this year, it will be a whisper compared to the bullhorns of other states and provinces trying to call in visitors. The states with the 10 biggest tourism budgets are Hawaii, Illinois, Pennsylvania, Texas, Florida, West Virginia, Louisiana, Missouri, South Carolina and Arizona, ranging from $69 million to $15.9 million. The average state tourism budget is $12.8 million. Maine spends about $7.5 million annually, with about $3.5 million of that devoted to advertising and marketing, ranking it 38th in the nation.

In 2004, tourism in Maine directly and indirectly generated $13.6 billion in sales of goods and services and supported 176,600 jobs – that’s one of every 10 jobs in the state, and they are jobs that will never be outsourced. For every $1 spent on tourism marketing, about $3 is returned in state taxes, usually within the same calendar year.

But in a state now strapped for cash, increasing tourism spending will be a hard sell. A hike in the lodging tax has been considered, but hotel operators worry about squeezing their guests to the point of making them less keen to return.

Michigan, currently in the throes of a recession because of the struggles of the auto industry, is putting more state funds on the line in a bid for more visitors. Relying on an old sales adage, “You can’t get a customer to buy a product they don’t know exists,” Steve Yencich of the Michigan Lodging and Tourism Association said that his state will bump up its tourism marketing efforts significantly, and it is considering embarking on a first-ever national marketing campaign.

Going national with its tourism message will not be cheap; the cost is estimated at $30 million. But Michigan, like Maine, cannot afford to be outspent by its competitors. Illinois now spends $49 million, and Pennsylvania is doubling its spending to $64 million.

A coalition of tourism boosters is working to persuade Michigan’s state government to make the investment in promotion, while at the same time opposing any increase in taxes. One possible solution to that dilemma, Mr. Yencich suggests, is to follow the lead of Illinois, which dedicates all of its lodging tax to tourism promotion.

Maine may not be ready for a big-ticket national campaign, but it should reconsider the current strategy of focusing advertising in its core market of southern New England, New York-New Jersey, and the nearby Canadian provinces. A one-time funding boost could allow the state to test the return in other regions. Given the rate of return on tourism spending, it’s a low-risk investment.


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