Posted on 15 July 2011.

BASED ON U.S. TRAVEL ASSOCIATION STUDY
THE CARIBBEAN (July 15, 2011) — A recent study by the U.S. Travel Association shows the “Impact of Tourism Marketing” and reveals that when states and municipalities cut back on marketing themselves as attractive places to visit, business drops. Marketing campaigns more than pay for themselves by the business they generate, according to the study, with a 12-to-1 return on marketing dollars. Research conducted by Longwoods International and commissioned by the U.S. Travel Association found that marketing programs increase visitation, which in turn generates tax dollars and helps creates jobs.
Examples of successful marketing programs researched by Longwoods International include:
Pure Michigan state promotion, which went national in 2009 stimulated 7.2 million trips to Michigan by out-of-state visitors who spent $2 billion at Michigan businesses, a 71-to-1 return on investment, and generated $138 million in new tax revenue. In 2010, the campaign’s second year, spending by out-of-state leisure visitors jumped 21 percent from 2009, to $6.4 billion and Michigan tourism-related employment rose by 10,000 jobs.
Hawaii doubled its tourism budget to $60 million after the legislature threatened to cut funding back to zero. After intense scrutiny, it was determined that after Hawaii invested $10 million in just the U.S. and Japan, the islands attracted nearly 700,000 people who spent $1.1 billion in Hawaii, a 110-to-1 return on investmentthat generated $78 million in tax revenues.
With Love, Philadelphia XOXO promotion had a budget of $4.3 million in 2009-10 and generated 3.7 million incremental trips to the Philadelphia region, andsaw 10-to-1 return on investment with the injection of $432 million in visitor spending and $24 million in new state tax revenue and $22 million to local governments. The marketing program also generated over 7,000 additional jobs for Greater Philadelphia at a reasonable cost of $600 in advertising for each job created.
Colorado Tourism Office cut its tourism marketing program to zero in 1993 which translated into a loss of more than 30 percent of its share of domestic visitors and more than $2 billion annually in visitor spending. In 2000 a new Tourism Office was formed with an annual budget of $5 million and now the state treasury sees a 12-to-1 return on marketing investment, and trips to Colorado have rebounded to record levels. According to the 2010 report, a record 55.1 million people visited Colorado, a 6.1 percent increase from 2009. Visitors also spent a total $10.15 billion in the state (a 4.6 percent increase from 2009) and $3.3 billion (a 6.5 percent rise) in Denver.
“The findings by the U.S. Travel Association are further recognition of the importance of tourism on a destination’s economy through the infusion of increased revenues and the creation of jobs,” said Josef Forstmayr, president of the Caribbean Hotel & Tourism Association (CHTA). ”CHTA, along with the Caribbean Tourism Organization (CTO), recently re-launched the marketing and business development unit, the Caribbean Tourism Development Company (CTDC), with the mission of owning, protecting, advancing and enhancing the Caribbean brand.
“We hope that both the private and public sectors throughout the Caribbean recognize the importance of funding a tourism marketing campaign via the CTDC to promote the Caribbean brand which will only serve to benefit all economies of the region,” noted Forstmayr.
To download the complete study, visit CHTA’s Tourism is Key websitewww.tourismiskey.com.
Caribbean Hotel & Tourism Association
The Caribbean Hotel & Tourism Association (CHTA) facilitates the full potential of the Caribbean hotel and tourism industry by serving members’ needs and building partnerships in a socially responsible and sustainable manner. CHTA was founded in 1962; it is the voice of the Caribbean hospitality industry for the development of the region in the highly competitive and sophisticated environment of international tourism. Today, tourism is widely recognized as a pivotal industry in the economy of the region – and CHTA functions as the common denominator for this industry in a region of diverse nationalities, languages and styles, identifying mutual problems and marshaling the resources of the active and allied members to devise solutions. CHTA represents all facets of the hospitality industry with more than 725 member hotels and 525 allied members.
For more information, visit http://www.caribbeanhotelandtourism.com. Follow CHTA on Facebook www.Facebook.com/CaribbeanHotelandTourismAssociation and Twitter www.Twitter.com/CHTAFeeds.
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