Preliminary results of the 2002 Advertising Effectiveness Study conducted by Longwoods International for the…
Preliminary results of the 2002 Advertising Effectiveness Study conducted by Longwoods International for the Colorado Tourism Office (CTO) indicate the return on investment (ROI) for tourism advertising is actually much higher than initial estimates.
In 2002, 1.86 million tourists, who spent $522 million in Colorado, visited the state as a result of the $2,546,000 advertising campaign. This resulted in a $32.4 million boost in state and local taxes.
According to Longwoods, every public dollar invested in promoting Colorado yielded $12.74 in taxes, an almost 13 to 1 return on investment. This figure is $10 higher than initial estimates, which indicated that every public dollar invested in promoting Colorado yields $2.75 in taxes.
These results, using a very conservative methodology, demonstrate clearly that tourism promotion is a revenue generator, not a cost, to the people of Colorado, said Bill Siegel, president of Longwoods.
We know with absolute certainty that investing in tourism promotion results in immediate revenue to the state, said Eugene Dilbeck, chair of the CTO`s Research Committee. The future return on tourism promotion will support the more than 200,000 Coloradans employed in the tourism industry, as well as countless small businesses.
The $9 million approved by the Joint Budget Committee as part of the Governor`s economic stimulus package will contribute an additional $115 million in state and local taxes, according to this methodology.
In order to impact summer tourism, the Colorado Tourism Office will have television and print ads placed no later than mid-May. The CTO is developing a flexible marketing plan that includes:
- Promoting Colorado as a premier travel and tourism destination through national television advertising.
- Expanding Colorado`s national print advertising campaign.
- Implementing another in-state/regional drive-market advertising
campaign. (Since 9/11/01, research reveals that travelers are looking for vacations closer to home.)
- Providing additional funds for an expanded co-op marketing campaign which gives local areas, destinations and attractions the opportunity to partner with the state on marketing and promotional activities, thereby allowing Colorado`s small business` advertising do
Tourism is one of Colorado`s leading industries, employing more than 200,000 Colorado workers. In 2001, Colorado was one of the few states to experience an increase in marketable travel. Overnight visitors spent $7 billion, or $19 million per day.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.