A new report from the U.S. Travel Association recently highlighted the importance of tourism in states’ economics as well as the importance of its marketing.
“We’ve seen it time and again: when jurisdictions stop investing money on tourism promotion, traveler volume slows, and the economic loss can be very painful,” Roger Dow, U.S. Travel president and CEO, said. “Even when they learn a tough lesson and flip the funding switch back on, it can take years to recover their previous market share.”
The report, titled “Made in America: Travel’s Essential Contribution to Economic Development,” aims to show the positive effects of successful tourism efforts but also presents a warning about the financial toll decreased tourism revenue can take on communities.
“Misguided decisions to cut or eliminate investment in tourism promotion usually ends in regret, followed by reversal,” Dow said. “The bad experiences of other jurisdictions should serve as a cautionary tale—slashing marketing costs visitors, which costs their spending, which costs tax revenue. The outcome is almost always the opposite of the intended ‘savings.’”
Annually, travel generates $165 billion in tax revenue for the United States, saving households approximately $1,300 each year.
The 50-page report navigated case studies and economic data to support the need for sustained efforts for travel promotion as well as why big companies, such as Comcast and GM, continue to market even when their brand is universally known. Additionally, the case studies in the report reveal benefits beyond the traditional view, showing success for rural communities, small businesses, crisis management and bettering quality of life for residents.