December 3, 2010

When Marketing Isn't a High Priority

Justin Katz

A familiar theme pops up all over the place, if you're looking for it. Consider the advice of consultants that the tourism division of the Economic Development Corporation (EDC) hired to help Rhode Island with its efforts in that area:

The consultants learned that 70 percent of the state's visitors come from just five states — Connecticut, Massachusetts, New Jersey, New York and Pennsylvania. However, of 1,100 people they surveyed, respondents were more likely to associate destination themes like "charming, quiet, peaceful, relaxing and friendly" with other states that compete for the same visitors.

Rhode Island may be losing visitors to places like Vermont and Maine, the consultants said, because other states spend far more to promote their own tourist attractions than Rhode Island does.

With a tourism budget of $720,000 annually, Rhode Island spends less than 10 percent of what the average state spends promoting tourism, says Mark G. Brodeur, director of the state's tourism division. That average, he says, is $11 million.

I'm not convinced that public resources are best spent on marketing campaigns, and I'd point out that Rhode Island has only 17% of the population of the average state. The reality is, however, that even if we adjust the perspective to say that Rhode Island should be spending twice as much (rather than ten times as much) on tourism, the state already taxes its residents too vigorously. We cannot fund such things as tourism marketing, because we're spending too much money on other things — like labor costs, giveaways, and the support of public corruption.

As with the higher education crowd, it's all well and good for economic development advocates to ask for more money, but we really need them to be making the case that they deserve the money more than other recipients of public largess.

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Justin,

I am truly happy that I moved from RI to a state that has a very proactive Department of Business, Economic Development & Tourism (DBEDT). http://hawaii.gov/dbedt

Whereas Hawaii is considered a “luxury vacation” meaning you have to go out of your way to get here.

The tourism section set a marketing goal of reaching $10.8 billion in tourist spending calendar year 2010 in State of Hawaii and aggressively marketed outside the state.

I am happy to say Hawaii by the end of December 2010 will surpass the $10.8 billion goal in tourist spending.

Posted by: Ken at December 3, 2010 8:32 PM

I could not agree more. We don't need to spend more tax payer money promoting RI as a "tourist" destination. Tourism/hospitality/Casinos are NOT the answer to our economic woes and, as any restaurant owner can tell you, do not weather a recession very well.

Hey, EDC how about we put the resources (starting with say, $720K/year) into continuing to foster the development of a knowledge economy here in RI; ie: high tech, bio tech, etc.

Or, better yet, let's just make RI more friendly in general to all businesses and their employees? Wouldn't it be nice to see less tax breaks to big companies and just less taxes to all companies located in Rhode Island and employing Rhode Islanders.

Posted by: Bwarb at December 13, 2010 12:15 PM

Makes me think of "It is common sense to take a method and try it. If it fails, admit it frankly and try another. But above all, try something." -- Franklin D. Roosevelt

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