States plan to spend a projected $554.2 million for travel and tourism development and promotion in fiscal year 2002 – 2003, according…
States plan to spend a projected $554.2 million for travel and tourism development and promotion in fiscal year 2002 – 2003, according to the Travel Industry Association of America`s (TIA) 2002 – 2003 Survey of U.S. State and Territory Tourism Offices. The figure is down eight percent compared to fiscal year 2001 – 2002. The survey includes responses from 45 states. Not included are Connecticut, New Jersey, New York, Ohio, and Tennessee and the five U.S. territories.
Like every other sector of the travel and tourism industry, state tourism offices are feeling the economic pinch. As a result, the budgets in this report are fluid, as they are still being revised in some states, explained Patty Hubbard, vice president of national councils for the Travel Industry Association of America. The challenge to all states is that competition remains fierce. Each of them competes with one another – not to mention other countries and other discretionary activities – for visitors` dollars.
Hawaii remained the leader in tourism office spending with a budget of $56 million for 2002 – 2003, despite its budget decreasing 21 percent from 2001 – 2002. Number two is Illinois with a budget of $49.7 million, down nearly 9 percent from last year. Rounding out the top five is Pennsylvania ($35 million, down 9 %), Texas ($31 million, down 13%) and Florida ($29 million, down 40%).
The good news is that some states are doing quite well in the current economic climate. In fact, 19 states reported increases, or that their budgets would, at least, remain flat. The biggest budgetary increases were reported by Nebraska, up nearly 38 percent from $2.2 million to $3.0 million; Montana, up 35 percent from $6.1 million to $8.2 million; Alaska, up nearly 26 percent from $8.4 million to $10.5 million and Maine, up 21 percent from $4.9 million to $6.0 million.
Public sector funds are the primary source of all tourism office funding, and indeed the sole source for 29 of the 45 responding states. Of the $554.2 million combined total projected budget, public sector funds represent nearly 95 percent, or $524.2 million.
A considerable amount of each state`s tourism office budget is allocated for advertising purposes. Texas and Florida plan to spend the most on domestic advertising, each budgeting nearly $12 million for 2002 – 2003, followed by Illinois ($7.8 million), Pennsylvania ($6.6 million), and Louisiana ($6.4 million). The total collective domestic advertising budget is $145.5 million (42 states responding). The average domestic advertising budget for 2002 – 2003 is $3.5 million.
Tourism offices plan to spend $5.3 million on international advertising and promotion for 2002 – 2003, a decrease of nearly 28 percent over 2001 – 2002 (28 states responding). Louisiana plans to spend the most on international advertising and promotion ($1.2 million), followed by Texas ($882 thousand) and Illinois ($828 thousand).
Besides advertising, states use a number of other means to promote travel to their destinations, including toll-free phone numbers for visitor inquiries, annual governors conferences on tourism, press tours, travel-related research, and for some, offices in international cities.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
