At a time when states are slashing spending to deal with staggering budget shortfalls, there’s one area they’re not cutting: tourism ads.
Think “Virginia is for Lovers,” “Connecticut: Closer than you think” and “Explore Minnesota.”
In fact, many states are increasing their funding for these campaigns, all in a race to lure the most tourism dollars and create jobs at hotels, restaurants and attractions.
In his budget proposal this week, Connecticut Gov. Dannel Malloy proposed steep spending cuts and tax hikes to close the state’s $3.2 billion deficit.
But Malloy wants to increase spending by $15 million on Connecticut’s tourism ad campaign. The state’s tourism commission used to have $4.3 million a year to play with, but Connecticut cut its marketing budget to $1 in fiscal 2009 and 2010.
It’s an investment that “will certainly pay for itself,” said the state’s secretary of policy and management Benjamin Barnes on Wednesday.
Michigan Gov. Rick Snyder, who is grappling with a $1.4 billion deficit, wants to ramp up the “Pure Michigan” campaign to $25 million this year, while proposing $1.2 billion in cuts to schools, universities and local governments.
The proposal passed in Michigan’s House with overwhelming support and is expected to fly through the Senate next week.
“At a time when our state has been suffering from a changing world economy, and losses in manufacturing, it’s been critically important that we replace those jobs in tourism,” said Dave Lorenz, a spokesman for the “Pure Michigan” campaign. “People understand that we’re helping to fill that void.”
Minnesota, which is coming up $6.2 billion short, is considering a 1 percent sales tax on rental cars to help raise $2.6 million or more dedicated to tourism marketing.
And Virginia, one of the few states to end fiscal 2010 with a surplus, is bringing back its “Virginia is for Lovers” commercials this spring after a five-year absence because of budget cuts.
“The bottom line is, tourism brings in money,” said Tamra Talmadge-Anderson, a spokeswoman for the Virginia Tourism Corp. “Tourists come to Virginia. They have a wonderful time, they spend, and that money is used to support key services throughout the state.”
Virginia’s government estimates that every $1 invested in tourism marketing, brings $5 back to the state in tax revenue alone. Michigan estimates that it gets just less than $3 in taxes for each $1 of marketing.
California, already one of the most traveled-to states, is not investing more taxpayer dollars in its tourism commercials this year. Facing a $28 billion deficit, the government gives its tourism commission just shy of $1 million a year and has been doing so since 2008.
The agency’s $50 million annual budget is 98 percent funded by private industry.
In October, California rolled out a three-ad series totaling $12.3 million, featuring a cast including Betty White, Jason Mraz, the Jonas Brothers and a bikini-clad Kim Kardashian reading a book on quantum physics.
