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Things to Consider in 2004: A Few Words from TICOM’s President, Steve Yencich, CAE
(Note: TICOM = the Tourism Industry Coalition of Michigan)
 One of the most important outcomes of grassroots involvement is the ability to throw the “law of large numbers” at legislators. The bigger TICOM’s membership, the greater the number of concerned members who are willing to call legislators on issues of concern. The greater the number of such contacts, the greater our ability to sensitize legislators on issues of concerns to tourism business operators and employees. Politicians always have, and always will make a raw political calculation on an issue’s importance by the number of voters who contact them about it. With your continued support in 2004, we can make this political fact of life work for us.
The beauty of TICOM is that when it wins, we all do. When TICOM worked to protect Travel Michigan’s budget form further budget cuts, those successful efforts benefited our entire industry. And it’s not a new idea. Collaborative legislative efforts have benefited teachers (MEA), farmers (Farm Bureau), lawyers (Michigan Trial Lawyers Association), big businesses (State Chamber of Commerce) and small business (Small Business Association of Michigan and National Federation of Independent Business). All of these groups realized the importance of political involvement many years ago. They also realize that under term limits, such grassroots involvement becomes more important.
Every six years we have an entirely new House of Representatives and every eight years the composition of the State Senate turns over completely. In most cases, these relatively new legislators know little or nothing about the dramatic contributions tourism makes to our state’s economy. They don’t realize that collectively, our industry is this state’s second largest employer. And it’s almost certain they don’t know the importance of the maintenance of a consistent state marketing program (a.k.a. Travel Michigan) to bring more tourists to our Great Lakes State. We need to work together so they understand such facts. As we gear up for 2004, here are just a few of the substantive issues TICOM expects to be involved in...
Business and Charities for Billboards:
At its December 18th meeting, TICOM voted to join this coalition which is chaired by Shepler's Mackinac Island ferry service and comprised of Bronner's of Frankenmuth, MHMRA, WMTA, the Michigan Chamber of Commerce, and over 200 other concerned business groups who want to maintain access to affordable outdoor advertising.
A competing, anti-billboard group, which oddly calls itself the “Coalition to Promote Michigan Tourism and Business,” has sought introduction of a four-bill package, which would greatly increase outdoor advertising costs. The bills (SB 898-899-900-901) feature a moratorium on all permits, except for those boards in existence since 1972; fee (tax) increases of 100-120% for renewal permits; and formation of a “best practices advisory group” that creates additional government bureaucracy and cost for those that use billboards. With all due respect to those groups that support this legislation, how does legislation that increases costs for outdoor advertising “promote tourism?”
Increasing Tourism Promotion Funding:
Recognizing the powerful contributions tourism makes to their economies, states such as Florida, Hawaii and Colorado have recently increased funding for tourism promotion. Now, Ohio has joined them. While state tourism office budgets fell an average of eight percent in the last fiscal year, Ohio's now is on the upswing. By 2005, Ohio will spend more than $7 million a year on tourism.
Attainment of similar objectives will be one of TICOM’s top priorities in 2004. We need to share to results of economic studies that show the dramatically positive effects of state tourism promotion can have on our state’s economy. Recently, Professor Don Holecek, Director of MSU’s Travel, Tourism and Recreation Resource Center, and Jim Carr, of Certec Inc., were hired to attempt to ascertain the return on investment (ROI) for Travel Michigan’s marketing program. The study dealt with expenditures in three specific destination marketing areas (DMAs): Chicago, Cleveland, and Indianapolis.
When considering only direct tourism spending, every state tax dollar spent by Travel Michigan in advertising in the three DMAs (Chicago, Cleveland, and Indianapolis) generated $22.79 in direct spending by tourists to Michigan’s economy. Thus, for every state tax dollar invested in advertising, $2.28 was collected in the form of new taxes payable to the State of Michigan derived only from direct tourism expenditures.
Tourist expenditures also stimulate economic activity, as they are re-spent and course through the economy. This is referred to as the multiplier effect. Every state tax dollar invested in advertising by Travel Michigan in the three DMAs generates $34.18 in total economic activity, when multiplier impacts are accounted for. Thus, for every state tax dollar invested in advertising in the three DMAs a total of $3.42 of new tax dollars are paid to the State of Michigan when multiplier effects are accounted for.
In other words, the results of the study of the three DMA’s indicates that the state treasury realizes a 128% to 242% return on investment for monies spent on tourism promotion. We must deliver such information to state legislators in the New Year.
Post Labor Day Schools:
In 2004, we will begin research on the number of businesses that would be affected by such legislation. Such legislation has proven to be very controversial in the past, and it’s important to ascertain the depth of industry support, and commitment to pursuing such an issue.
How many businesses are affected by such a statutory change? How many business owners would contribute to industry PACs and provide additional legislative funding necessary to engage in economic impact studies and public opinion polls? How many business owners would provide financial support for such an undertaking? These are all questions you must help us answer before we take on such a tough issue. We lost this battle the last time because not enough people got involved.
Our industry’s strength is directly tied to the degree of your political involvement. This support allows us to leverage the “law of large numbers” on your behalf. Make it your resolution to get and stay involved in politics. When combined with thousands of other tourism industry business owners, operators, and employees, your support becomes our strength in 2004.
Feel free to direct your comments about these issues to Steve Yencich.
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