2004 MACVB Annual Meeting

The Increasing

Role Of Tourism In Economic

Development

June 2004

A special presentationby

Greg GilstrapPreprint Publishing

A special presentationby

Greg GilstrapPreprint Publishing

Session OutlineSession Outline Evolution of DMOs Tourism’s

Evolution With Economic Development

Case studies Q and A

DMO Evolution

DMO Evolution

DMO EvolutionDMO Evolution

Early Days

Future

Marketing

Marketing+

Management

The DifferenceThe DifferenceMarketing Management

Focus

Core Competency

Development

Leadership

Philosophy

Orientation

Scope

Selling

Rowing

Little Emphasis

Industry

“Sell what we have”

Internal

“We do it all”

Competitive Advantage

Steering

Big Emphasis

Community

“Package or develop what

we need”

External

“We do what we can do well”

This is ourproduct

This is ourproduct

To whom do we sell

it and how?

This is our target

customer

What product development do

we need?

CustomersCustomers

Traditional tourism approachTraditional tourism approach

Strategic tourism approachStrategic tourism approach

Product DevelopmentProduct Development

Build new facilities Expand current facilities Change orientation of

current facilities, exhibits, etc.

Bricks and MortarBricks and Mortar

Packaging Itineraries Niches Strategic

grouping

Mental MortarMental Mortar

Applying Mental MortarApplying Mental Mortar

                             

                     

                         

                         

Take a 3-day getaway and explorethe many magnificent miles ofIllinois.

                                              

Current Travel Package Themes

Seasonal Golf Family Fun

Winery Romance

Heritage Indulge Great Outdoors

Summer Theatres/Museums

By City? By Region?

Destinations Must CompeteDestinations Must Compete

Outdated DMO ApproachLow

spending potential

Mediumspending potential

Highspending potential

Destinations Must CompeteDestinations Must Compete

Progressive DMO ApproachLow

spending potential

Mediumspending potential

Highspending potential

Implications for ineffective marketers?

Implications for ineffective marketers?

Tourism’s Evolution

With Economic

Development

Tourism’s Evolution

With Economic

Development

Case StudyCase StudyCity of Sausalito

Marin County, California

Arizona GolfArizona Golf

50% of golf courses in resort communities

Catalyst for high-tech movement

If Not for Visitor SpendingIf Not for Visitor Spending

Visitor Generated Spending

50%

Magnificent Mile -10 million visits from

Metro Chicago residents annually.

Source: GNMAA & DK Shifflet

Bozeman, MontanaBozeman, Montana

Indirect & Induced EffectsIndirect & Induced Effects

Qualitative Approaches

Health care operation

Rural church

Insurance sales

                             

Take a trip to Big Bend and explore nearly 300,000 acres of Chihuahuan Desert, experience the "Titan" at Six Flags Over Texas and enjoy the Hill Country on horseback. This and much more is packed into twelve weekend vacations throughout Texas. So, get out there and Rediscover Texas - it's on us!

Role of Visitor SpendingRole of Visitor Spending

Expands Resident’s Amenity Base

Expands Resident’s Amenity Base

Access to quality beaches

Cultural/heritage options

Retail and dining options

Entertainment options

Recreation options

Etc.

Accelerates All Forms of Economic DevelopmentAccelerates All Forms of Economic Development

Introduces decision makers

Creates quality of life amenities

Aids in attracting employees

Aids in attracting employers

Etc.

Countering Objections Countering Objections

Just low paying jobs?

Counter Arguments Counter Arguments

1. Tourism is a catalyst for many forms of

economic development

2. Traditional job studies under report tourism wages

The Catalyst RoleThe Catalyst Role

“The tourism objectives materializing in this process should be viewed as an ideal compliment (and insurance policy) to the general economic development goal of creating higher paying jobs.”

Lobbying LawmakersLobbying LawmakersSenator Martin and Representative Jayne: As the legislative session winds down, I would like to respectfully encourage you to go to bat for full formula funding for the Arizona Office of Tourism.  It is my understanding that an amendment will likely be offered on the floor of the House of Representatives to the general appropriation bill in the next few days that will provide for the full formula funding ($2.6 million additional funding or $11.6 million total AOT base funding).  Tourism is the straw that stirs this state's economic engine.   There are many of us who live in your district that may not appear initially to be dependent upon the importation of tourism dollars.   We are publishers, architects, lawyers, accountants, insurance professionals, distributors of food products, furniture sales people, turf management specialists, transportation providers, etc.   We may not fit the image that first comes to mind when many people imagine what a tourism professional looks like.   Make no mistake, however, we are and we depend on the State of Arizona for making sure high-spending visitors choose the Grand Canyon State over more aggressive competing destinations. Please don't hesitate to call me if you would like to discuss this most important matter in greater detail.   I appreciate you representing me, my business and my Anthem neighborhood. Kind regards,

Greg Gilstrap 

Lobbying LawmakersLobbying LawmakersDear Friends: …I’m sure you are aware of the research that shows dollars spent on tourism give a direct RETURN on the investment in immediate increases in sales taxes, hotel taxes, etc., not like some longer term investments the state makes for economic development or university expansions that take years for a return to materialize.  I would suggest that during these difficult budget times you should invest more in tourism today to save budget problems this year, next year, and in the future… Respectfully,  John Hudak Publisher/Editor-in-Chief Madden Publishing Inc. 

Case StudiesCase

Studies

A destination assessment identified the need for the CVB to take a leadership role in planning and development.

The recommendations included: new business development, event tourism and gateway/signage enhancement as well as becoming an active participant in the planning activities of the county, cities and towns.

The Board of Directors led the expansion of the CVB mission to include increased involvement in development initiatives and additional responsibilities in the community.

The Elkhart County, IN CVB

Results of development emphasis

The Elkhart County, IN CVB

The CVB has been designated as the project manager of a community wide visioning process.

The ECCVB took a leadership role in influencing a small community within the county to do a comprehensive development plan.

The CVB will be a partner with the City of Elkhart in a planning process to consider developing a restaurant district, museum campus and cultural arts initiative as a part of the redevelopment of downtown.

The new focus resulted in the CVB adding an urban planner to its staff.

Downtown RedevelopmentDowntown Redevelopment  $600 million downtown

mixed use development

$5 billion international terminal expansion at DFW

Light rail system

BrandingBranding

Successes Brand and slogan

launched with regional placements

55 to 60 partners using the brand

Partner usage extending beyond tourism

Front-line training Phase II planning –

putting people first

Lawrence, KansasLawrence, Kansas

2002 Governor Candidates

“I am firmly committed to investing in tourism.”

“Much of our permanent growth can be directly attributed to a visit here first.”

“To attract corporations and encourage development and growth of wealth-

generating companies we should pursue…protecting and enhancing

Arizona’s assets that produce a desirable quality of life.”

“These areas are simply where our economy derives its major activity right

now.”

“Arizona is not too dependent on low-paying jobs.”

Can you cover up your other ear so Andrew can’t hear what I’m saying?

Can you cover up your other ear so Andrew can’t hear what I’m saying?

Q & AQ & A

2004 MACVB Annual Meeting

The Increasing

Role Of Tourism In Economic

Development

June 2004

A special presentationby

Greg GilstrapPreprint Publishing

A special presentationby

Greg GilstrapPreprint Publishing

“We feel our organization can build strategic

alliances to provide the leadership and vision in

building a better community for visitors and residents while continuing our goal of having tourism

recognized as being an economic engine.”

- Diana LawsonExecutive DirectorElkhart County CVB