PURE TOURISM: Michigan Advertising Program Splashing Across Markets
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Bay County residents participated in a Pure Michigan video advertising spot in 2012. (Photo by Sean Connelly)
Ashton Tacey, Miss Teen Bay County, smiles for the Pure Michigan camera. (Photo by Sean Connelly)
The 2013 Pure Michigan national advertising campaign is now airing on more than 25 cable channels.
The national campaign television ads will air more than 5,000 times through June. The total budget for the 2013 national campaign is $13 million.
The Pure Michigan campaign in 2012 attracted 3.8 million out-of-state visitors, who spent a record high $1.1 billion at Michigan businesses, according to Longwoods International.
The Great Lakes Bay Region benefited from the Pure Michigan campaign as room tax and assessments have risen 28 percent from 2009 through 2012. Bay and Midland counties increased room tax assessments from two percent to five percent under a law approved by the state legislature in 2011.
In January 2011 the Saginaw County Convention and Visitors Bureau entered into a marketing partnership with the Bay County Convention and Visitors Bureau and the Midland County Convention and Visitors Bureau to form the Great Lakes Bay Regional Convention and Visitors Bureau (GLBRCVB).
The Bureau is exempt from federal income taxes under Section 501 (c) (6) of the Internal Revenue Code and is also exempt from similar state and local taxes.
In 2012, room tax and assessments totaled $879,128 for Midland County, $1,552,359 for Saginaw County and $471,285 for Bay County.
Seventy-five percent of the income from room taxes is remitted to the GLBRCVB and twenty-five per cent goes to the previously established CVB's in each county.
Members of the Bay County CVB are Michelle Judd, chairman; Michael Smith, vice chairman; Brian Czekai, secretary/treasurer; Mary Lou Benecke, Jeff Mayes, Cheryl Campbell and Leslie Thompson, with Tom Niemann an honorary ex-officio member.
Financial statements of the Saginaw CVB for the year ended Dec. 31, 2012 stated: "The Bureau will undertake a significant economic development project each year in Saginaw County. During the year ended Dec. 31, 2012, the Bureau invested with the Saginaw County Land Bank Authority $545,796 to purchase and raze the Saginaw Plaza Hotel and International Center."
"The Bureau anticipates that the future improvement of the property will benefit the overnight tourism industry in Saginaw County," the independent auditor's report by Gardner, Provenzano, Thomas and Luplow states. The land is owned by the Saginaw County Land Bank Authority.
The Pure Michigan campaign generated 580,000 more trips to Michigan in 2012 than in 2011, Longwoods reported. Some $79.1 million in new state tax revenues was generated from the visitor spending.
When compared to the $13.7 million spent on out-of-state advertising for the Pure Michigan campaign in 2012, the $79.1 million in tax revenue resulted in a return on investment of $5.76 for every dollar spent.
"The Pure Michigan campaign plays a vital role in growing our tourism industry by consistently attracting new visitors to Michigan and delivering a strong return on investment for the state," said Gov. Rick Snyder.
"These impressive results showcase the power of Pure Michigan, and demonstrate the vast potential we are seeking to tap into with our efforts to expand this campaign into international markets."
"The efforts of Pure Michigan have significantly helped, along with marketing efforts by the area CVBs," said Annette Rummel, Great Lakes Bay Regional Convention and Visitors Bureau president/CEO.
During the same period, overhead has fallen 68 percent while tourism economic development has increased more than $1 million for the Great Lakes Bay Region. Market investment has risen from $839,000 to $2.1 million.
Ms. Rummel said she expects a minimum of 3 percent increase in visitor spending in 2013.
Of the 3.8 million out-of-state visitors attracted by the the Pure Michigan campaign, 2.3 million came from the Great Lakes region and 1.5 million came from around the country.
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