2004 MACVB Annual Meeting The Increasing Role Of Tourism In Economic Development

1. 2004 MACVB Annual Meeting The Increasing Role Of Tourism In Economic Development June 2004 A special presentation by Greg Gilstrap Preprint Publishing

2. Session Outline • Evolution of DMOs • Tourism’s Evolution With Economic Development • Case studies • Q and A

4. DMO Evolution

5. DMOEvolution Marketing Early Days Marketing + Management Future

6. The Difference

7. Customers Traditional tourism approach This is our product To whom do we sell it and how? Strategic tourism approach This is our target customer What product development do we need?

8. Product Development Bricks and Mortar • Build new facilities • Expand current facilities • Change orientation of current facilities, exhibits, etc. Mental Mortar • Packaging • Itineraries • Niches • Strategic grouping

9. Applying Mental Mortar Current Travel Package Themes Seasonal Golf Family Fun Winery Romance Heritage Indulge Great Outdoors Summer Theatres/Museums By City? By Region?

10. Destinations Must Compete Outdated DMO Approach Low spending potential High spending potential Medium spending potential

11. Destinations Must Compete ProgressiveDMO Approach Low spending potential High spending potential Medium spending potential Implications for ineffective marketers?

12. Tourism’s Evolution With Economic Development

13. Case Study City of Sausalito Marin County, California

14. Arizona Golf • 50% of golf courses in resort communities • Catalyst for high-tech movement

15. If Not for Visitor Spending Magnificent Mile - 10 million visits from Metro Chicago residents annually. Visitor Generated Spending 50% Source: GNMAA & DK Shifflet

16. Bozeman, Montana

17. Indirect & Induced Effects Qualitative Approaches Health care operation Rural church Insurance sales

18. 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!

19. Role of Visitor Spending 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 Development Introduces decision makers Creates quality of life amenities Aids in attracting employees Aids in attracting employers Etc.

20. Countering Objections Just low paying jobs?

21. Counter Arguments Tourism is a catalyst for many forms of economic development Traditional job studies under report tourism wages

22. The 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.”

23. Lobbying Lawmakers Senator 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

24. Lobbying Lawmakers Dear 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. 

25. Case Studies

26. The Elkhart County, IN CVB • 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.

27. 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. Results of development emphasis

28. Downtown Redevelopment • $600 million downtown mixed use development • $5 billion international terminal expansion at DFW • Light rail system

29. Branding 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

30. Lawrence, Kansas

31. 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.”

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

33. Q & A

34. 2004 MACVB Annual Meeting The Increasing Role Of Tourism In Economic Development June 2004 A special presentation by Greg Gilstrap Preprint Publishing

35. “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 Lawson • Executive Director • Elkhart County CVB