A Lesson to be Learned: One Colorado Experience is Enough
After a successful advertising campaign funded by the Colorado legislature in 1993, Colorado ranked first in both the summer & winter resort popularity categories. Then Colorado lost its tourism funding when voters decided not to renew a 0.2 percent sales tax on tourism-related businesses which had raised over $13 million yearly to fund its state tourism department.
"Colorado lost a third of its market share in two years," said Bill Siegel, chief executive of the research company Longwoods International told the Rocky Mountain News. Longwoods' research demonstrated Colorado had been out-shouted by competitors with lesser tourism products to sell. This was costing the state over $2.4 billion in foregone revenue and $134 million in taxes annually. After ranking first in the summer resort category in 1993, Colorado plummeted to 17th in 1994 and has not made the top 10 since.
The Rocky Mountain News reported the number of overnight pleasure trips to Colorado dropped from an estimated 19.9 million in 1992 to an estimated 17.5 million in 1995 while other competitors were on the rise. While addressing the Colorado tourism industry during the industry summit 'The Rise and Fall of Colorado Tourism," Siegel said. "Tourism is not a cost...it's what pays for programs."
Longwoods International was contracted to develop an official marketing plan and funding proposal, which was distributed to every legislator and to all the media. As a result, the newly established Colorado Tourism Office is now beginning the job of regaining the ground lost to the competition during the years when Colorado was the only state without an official tourism function.
Although the state ranks 3rd among U.S. states, after Hawaii and Alaska in terms of tourism appeal, it ranks 19th, just ahead of Indiana in terms of actual leisure travel. With the image and product in place, the only missing piece appears to be promotional dollars. "Out of Sight is Out of Mind," declares Siegel.
Dr. Bill Siegel, President & CEO of Longwoods International - January 2002
For more on spending on advertising during recessions visit:
http://www.marketinginsightstoday.com/archives/1223
http://southeasttourism.org/programs/coop.html