October 11, 2010
October 11, 2010
General fund revenue currently more than $100 million over target
LANSING - Governor Jennifer M. Granholm 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 FY 2010.
"Pure Michigan is a proven winner in supporting Michigan jobs and businesses," Governor Granholm said. "With revenues higher than expected and with widespread support from this award-winning program it is important that we seize the moment to put this campaign back on track. The move will also allow lawmakers time to focus on finding a long-term solution to fund Pure Michigan."
Last month Travel Michigan cancelled 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 loss of funding for our 2010-2011 campaign was a major blow to Michigan's tourism-related businesses and will result in the loss of revenue at tourism businesses as well as reduced state tax collections," stated George Zimmermann, vice president of Travel Michigan, a business unit of the Michigan Economic Development Corporation. "A decision to fund Pure Michigan will allow us to resume our regional winter advertising program, our regional fall advertising program in 2011 and our regional and national program in spring and summer."
The 2010-2011 state budget funded Pure Michigan at $5.4 million. An additional $25 million would allow the program to realize its full potential.
Travel Michigan's 2009 Pure Michigan advertising campaign delivered a significant return on investment (ROI), according to a study conducted by Longwoods International, a research firm specializing in tourism advertising return on investment.
According to the study, the first-ever national Pure Michigan advertising campaign motivated 680,000 new trips to Michigan from outside the Great Lakes region. Those visitors spent $250 million at Michigan businesses last summer as a direct result of the Travel Michigan advertising program. 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.
In addition, the study also determined the effectiveness of the campaign on the regional level. Longwoods International assessed the impact of the 2009 Pure Michigan summer 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.
Michigan's tourism industry is a vital component of the economy. Visitors to the state spend $15.1 billion annually traveling in Michigan, generating $850 million in state taxes and supporting 142,500 jobs for Michigan residents.
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