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Monday, 15 April 2013 13:16

Pure Michigan generates best ROI yet despite diminished regional returns

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The Pure Michigan tourism campaign generated its best return ever in 2012, drawing an estimated 3.8 million people to the state that spent more than $1.1 billion during their stay, according to new research data.

Last year’s campaign brought in $5.76 in state tax revenue collected for every $1 spent on tourism promotion, up from $4.88 in 2011 and the best ROI since the state launched the Pure Michigan brand in 2006. The improvement for the overall promotion came on the strength of the national advertising campaign and was despite a lower ROI from a regional campaign in Great Lakes states.

The cumulative ROI over seven years totaled $4.10 for $1 spent, up from $3.70 as of 2011, according to data from the Toronto-based tourism research firm Longwoods International.

“The Pure Michigan campaign plays a vital role in growing our tourism industry by consistently attracting new visitors to Michigan and delivering a strong return on investment for the state,” said Gov. Rick Snyder. “These impressive results showcase the power of Pure Michigan, and demonstrate the vast potential we are seeking to tap into with our efforts to expand this campaign into international markets.”

Longwoods International presented the annual ROI report today during the 2013 Pure Michigan Governor’s Conference on Tourism in Detroit. 

The data show that 3.8 million people visited Michigan last year from other states, an increase of about 580,000 visitors from 2011. About 2.3 million people came from states in the Great Lakes region and 1.5 million traveled here from longer distances, according to Longwoods.

The $8.7 million national marketing campaign generated an ROI of $4.45 for every $1 the state spent, with $554.9 million in new visitor spending and $38.8 million in state tax revenue for 2012. That compares with the $10.5 million campaign in 2011 that generated an ROI of $3.11 based on 1.2 million trips from visitors who spent $465.5 million and paid $32.6 million in taxes.

The $5.0 million regional campaign targeted at markets in the Great Lakes last year generated an ROI of $8.06, new visitor spending of $574.8 million and $40.2 million in state tax revenue. That’s a second straight year of diminished returns from the regional campaign. In 2011, the state spent $3.8 million, which drove 2.0 million trips, $531.9 million in spending and $37.2 million in tax revenue for an ROI of $9.85.

The overall ROI results for last year, based on surveys with travelers, provide a “strong foundation for our efforts to raise awareness of Michigan as a national travel destination” as Travel Michigan, a unit of the Michigan Economic Development Corp., continues its largest campaign to date for the busy summer travel season, said Vice President George Zimmermann.

“With a new five-year, statewide tourism industry strategic plan in place and a high level of engagement at the local level, we are in a terrific position to capitalize on this growing number of out-of-state visitors choosing Michigan as their vacation destination,” Zimmermann said.

Travel Michigan received $25 million to promote the state as a travel destination throughout the 2013 fiscal year. A $13 million national spring and summer campaign this year launched March 18 on more than 25 cable television networks and will feature 5,000 ads running through June. The spring and summer campaign includes $3 million that came from five private-sector partners – Grand Rapids, Mackinac Island, The Henry Ford, Traverse City and Ann Arbor – for customized ads, Zimmermann said.

Come next year – if legislators approve an additional $4 million in funding proposed by Gov. Snyder in his budget proposal for the 2014 fiscal year that starts Oct. 1 – Travel Michigan would target the Pure Michigan campaign to Toronto, step up marketing in Europe and to start promoting the state in Asia by targeting travelers in Japan, South Korea and China.

Read 3673 times Last modified on Tuesday, 16 April 2013 10:42

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