The Michigan Lodging and Tourism Association said this week that three-quarters of its members saw an increase in out-of-state visitors this year, even in the national recession.
The credit goes to the state’s Pure Michigan advertising campaign, with loads of visitors offering up anecdotes about the eye-popping ads.
But tourists’ memories can be short, especially if the state cannot maintain the tourism marketing investment, the lodging association said this week…
“Unless the Legislature approves a permanent source of funding for the ads, the campaign will go dark after the state’s new fiscal year starts Oct. 1. Tourism is Michigan’s third largest industry employing more than 200,000 people and generating about $16 billion in annual revenues. Research has found that every $1 the state invests in tourism promotions in other states generates $2.86 in new sales tax revenues for Michigan, making the Pure Michigan campaign one of the few taxpayer-funded programs that returns a profit to the state.”
State Rep. Joel Sheltrown, chairman of the House Tourism Committee, explained the quandary this summer…
Michigan tourism is on the rebound, outperforming the rest of the state’s economy. For the second quarter in a row, the tourism industry showed improvement. This is in contrast to an industry analysis this spring which predicted a 3% to 4% decline for 2009. Despite below average temperatures this summer, many tourism oriented businesses are witnessing better than expected revenue. The Michigan Lodging and Tourism Association reports that 60% of businesses have seen an increase in out of state guests from last year.
joelsheltrown :: State tourism program leads economic recovery
Comerica Bank credits the Pure Michigan ad campaign for the boost in tourism. The Travel Industry Association of America awarded the Pure Michigan campaign as the Best State Tourism Advertising Campaign. Forbes Magazine calls it one of the Top 10 Travel Promotional Campaigns Ever! The Pure Michigan campaign got a big boost this year with a $30 million appropriation, enabling it to spread out around the country. It appears to be working. Unfortunately, the increase in funding will come to an end on September 30.
Bills to establish a dedicated, $20 million annual funding stream for Michigan tourism promotion are sitting in a House committee as the budget hurricane continues to whirl. The money would come from a $2.50 per day tax on car rentals and earmarking some sales taxes on tourism-related purchases.
Given the well-documented return that tourism promotion provides to state coffers in terms of increased sales tax revenue, this is no time to wave a “no-tax” banner on these kinds of dedicated, forward looking, strategic investments in the state’s economic future.
You can support the Pure Michigan funding bills in the State House by using the Michigan Lodging & Tourism Association’s online petition.
4 Comments
The Pure Michigan ads have been a great investment in our huge industry of tourism.
Tourists, nature lovers, hunters and fisherpeople all stream to Michigan for the many,many beautiful scenic locales.
Concerning tourism, ask yourself this question:
“Do I care what the sales tax rate is in a state before I visit that state on vacation?”
For most people the answer is no. Many vacation states have sales tax rates much higher than the 6% we charge in Michigan.
If we raised the sales tax on products and services, our friendly tourists will help share in the cost of maintaining our state’s infrastructure of roads, bridges, docks, etc.
And it will not raise an eyebrow.
So, keep the Pure Michigan campaign and consider raising our sales tax from 6.0% to 7.%, so we can share our state’s financial load with the tourists who come to enjoy Michigan.
Please add my name others who also support those wonderfully produced and captivating “Pure Michigan” adds.
They are one of the bright spots for our state.
However, i wouold rather see us not provide services to illigal aliens, streamline the budget rather than rasie the sales tax to 7.0 % This is an increase to an already regressive tax against the poor, and our senior citizens.
so another example of privatizing profits and publicizing the costs. great idea guys! Beneficiaries of tourism should end the prisoner’s dilema and pony up to fund these well done ads.
First, Let me be clear on this: I’m not against advertising in other states for our tourism business. I also believe there is two things that control the tourism business. First is the coust of fuel or transportation to travel to Michigan. Second is the overall cost of living for people of low to moderate incomes.Until this country has an energy policy that will help stabilize the cost of energy,We eliminate so many of the people from vacationing.