What the Governor’s Talking about
Today
Monday, October 11,
2010
Governor Calls for
Increase in Pure Michigan Funding Due to Higher Than Projected
Revenues
The governor today said she is asking state lawmakers to
appropriate an additional $25 million to fund the Pure Michigan advertising
campaign at the earliest possible date so the state’s tourism campaign can get
back on track. The governor’s recommendation on Pure Michigan funding
follows news from the state treasurer that revenues in the state’s general fund
are more than $100 million above projections for the 2010 fiscal
year.
Last month Travel Michigan canceled the 2010 Pure Michigan fall advertising
campaign, marking the first time since 2005 that Michigan tourism did not have a presence with
fall advertising. The 2010-11 state budget funded Pure Michigan at $5.4
million. An additional $25 million would allow the program to realize its
full potential.
Key messages:
- Michigan’s
tourism industry is a vital component of the economy. Visitors spend
$15.1 billion annually traveling in Michigan,
generating $850 million in state taxes and supporting 142,500 jobs for
Michigan
residents.
- Pure Michigan is a proven
winner in supporting state tourism. With revenues higher than expected
and widespread support for this award-winning campaign, it’s important that we
seize this opportunity to put Pure Michigan back on track. The move will
also give lawmakers time to focus on finding a long-term funding solution for
Pure Michigan.
- The loss of
funding for the 2010-11 Pure Michigan campaign was a major blow to the state’s
tourism-related businesses and will result in the loss of revenue at tourism
businesses as well as reduced state tax collections. A decision to fully
fund Pure Michigan will allow a regional winter advertising program, a
regional and national program in the spring and summer, and a regional fall
advertising program in 2011.
- Pure Michigan’s first-ever
national advertising campaign in 2009 delivered a significant return on
investment according to a Longwoods International study. According to
the study, the campaign motivated 680,000 new trips to Michigan from outside the Great
Lakes region. Those visitors spent $250 million at
Michigan
businesses as a direct result of the advertising campaign. In addition,
these new out-of-state visitors paid $17.5 million in state taxes while in
Michigan,
yielding a $2.23 return on investment for the tourism
advertising.
- The Longwoods
study also assessed the impact of the 2009 Pure Michigan summer regional
advertising on the residents of the Chicago,
Cleveland, Indianapolis, Cincinnati,
Dayton, Columbus, St. Louis,
Milwaukee, and Ontario, Canada markets. The regional
campaign attracted 1.3 million out-of-state visitors to Michigan last summer, visitors who spent $338 million at
Michigan
businesses. The Pure Michigan campaign was able to improve its regional
return on investment from $2.86 in 2004 to $5.34 in
2009.
# #
#