tourism

Tourism Budgets Are Slashed Nationwide

Pure Michigan

It may be almost summertime, but the living is not easy -- at least not at many state tourism offices across the country.

While spring usually signals the beginning of robust advertising efforts in hopes of attracting vacationers, state budget deficits are resulting in many slashed budgets.

Travel Michigan's overall marketing budget for the year was cut from $30 million in 2009 to $15 million this year. To add insult to injury, the money was approved later than usual, so instead of running ads in April, the state didn't begin its integrated effort until May 3. To save money, the state is focusing on national creative rather than conducting both national and regional versions for nearby Midwestern states.

It is continuing its "Pure Michigan" effort, which highlights water activities, outdoor adventures and golfing trips, which are popular there. The campaign includes search, TV, out-of-home, emailed newsletters, print and social media. It runs through the end of June.

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Like Michigan, Virginia also has seen its marketing budget cut in recent years because of the recession. While this year's $6 million tourism marketing budget is up $3.6 million from last year, it is only at 1996 levels. The state will use the revenue to target consumers in Washington, D.C., Baltimore and Raleigh. Its campaign includes search, email, social media, print and TV.

New York's iconic "I Love New York" tourism campaign is the latest casualty in that state's ongoing budget crisis. There is no money to run TV spots, and the state says it will close a key tourism center on the Pennsylvania border next month. The state did, however, relaunch its "I Love New York" Web site in March. The brand has 20,000 followers on a Twitter feed.

The state previously turned the "I Love New York" campaign into a statewide marketing machine in 2007. Now, the state's governor has proposed to spend $10.6 million on state tourism in the current fiscal year -- half the money spent three years ago. The state also has frozen a $4.2 million grant program that doubles the money that local tourism organizations can use for their own marketing efforts.

Tennessee is also threatening to cut tourism marketing dollars in order to shore up a projected $1 billion to $1.5 billion shortfall in the coming year's budget. Among the proposals is one that would eliminate $3.5 million from the state's marketing budget.

Direct and digital campaigns have taken the place of TV ads in some states.

The Pennsylvania Tourism Agency is using social media to advertise because it's free. The state is among the first to use Foursquare, which is like Twitter, except people are asked to tell where they are. On Facebook, the agency is offering a free weekend at one of eight resorts in the state for people who take and submit pictures of friends and families on vacation in the state.

The California Travel & Tourism Commission kicked off an online marketing contest with Southwest Airlines. The tourism group is using email, search, display, social media and in-airport ads encouraging people to go to www.visitcalifornia.com/game, where they can answer trivia questions about the Golden State. Consumers compete for weekly airline ticket giveaways on Southwest through June 27. Two grand prize package getaways will be announced July 19.

Maryland, which saw its budget drop $150,000 for the first half of the year, is running an integrated campaign that includes direct mail, telemarketing, social media, TV, radio, search and email. The effort encourages people to contact call centers or go online for information about travel ideas. Consumers can have tourism packages mailed to their homes that include coupons for hospitality businesses throughout the state.

The Las Vegas Convention and Visitors Authority is basing its latest budget on 2004 revenue levels. That's just how deep the decline has been in the room-tax revenue that funds the bulk of the authority's operations. The authority saved its steepest budget cuts for advertising. Spending will drop from $87.4 million in fiscal 2010 to $71.8 million in fiscal 2011, an 18% drop.

Indiana is also embracing social media outlets to promote the state's attractions as its tourism budget continues to shrink. Destinations throughout Indiana no longer can count on traditional state marketing campaigns that include television and radio spots to help drive summer crowds.

Lawmakers who passed a biennial budget during the special session last year sliced the state's annual contribution to the tourism department in half, from $4.8 million to $2.4 million. The department's financial woes have worsened even more, however. Because state revenue continues to fall short of projections, only about $2 million will be spent this year on tourism. The rest has been placed in a reserve fund to protect against future budget cuts.

Baltimore is using the still-lackluster economy to its advantage in a new campaign with the tag: "Find Your Happy Place in Baltimore." The $500,000 marketing is intended to play off the recessionary blues, with one early Web spot asking, "Has the economy got you in a slump?"

The multimedia campaign aims largely to draw visitors from nearby states as well as other parts of Maryland. It will promote Baltimore museums, attractions, hotels, restaurants and other destinations from now until New Year's Eve, in print and on television, radio and online. Target markets for print ads and TV spots include Pittsburgh, Philadelphia and Harrisburg, Pa., Richmond, Va., and Washington, D.C.

 

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