The JW Marriott, seen in the background in this photo taken from the Amway Grand Plaza Hotel, has had a strong impact in drawing conventions and meetings to Grand Rapids.
Tourism Stays Steady, But
Funding May Run Out
Jake Himmelspach
GRAND RAPIDS — Though the numbers are not in yet, experts in the tourism industry are reporting positive signs for this year’s summer season.
“Tourism statewide is holding its own,” said Steve Yencich, CEO of the Michigan Lodging and Tourism Association. “When you take a look at the state’s economy and the cost of gasoline, I see that as a distinct victory.”
Yencich quoted a report comparing the hotel occupancy rate of July 2008 versus July 2007, which showed a drop of .2 percent — minor when contrasted with historic unemployment rates and gas prices. Nationwide, tourism dropped by 2.1 percent. A large part of Michigan’s success is due to bringing visitors from out of state. Yencich pointed to the Pure Michigan campaign, a series of television and radio ads that promote tourism in Michigan, as well as the efforts of convention and visitor bureaus.
Pure Michigan, part of Travel Michigan, a division of the Michigan Economic Development Corp., aims to help draw tourists in general to Michigan. The campaign started airing in Chicago, Cleveland, Indianapolis, Cincinnati, Milwaukee and Ontario. It has expanded into Columbus and Dayton, Ohio, and St. Louis. Next year it will go nationwide.
“A lot of the folks that would have driven to, say, Estes Park or the Grand Canyon — one of those nice, long family vacations — are staying much closer to home, and in many cases they are, for the first time, hearing about the tremendous tourism assets that we have,” said Yencich. “Travel Michigan moved down into St. Louis and began to air ads there. They went into Cincinnati for the first time and just blanketed that market, and you can’t get someone to buy a product they don’t know exists. Get those great Pure Michigan ads playing and that means good things.”
The Pure Michigan campaign, however, may lose the majority of its funding after 2009.
The campaign received a one-time infusion of funds through a tobacco settlement that totaled roughly $47.5 million. “That covers the $17.5 million for the promotion fund for ’08, and we’ll have $30 million next year for ’09. But after ’09, there’s nothing. We’re back to square one,” said George Zimmermann, vice president of Travel Michigan.
In 2005, the promotional budget for the organization was $5.7 million. A one-time appropriation the following year bumped the budget to $13.2 million.
“We have actually had two of these special one-time boosts, but at some point we need to get to a permanent funding level,” said Zimmermann. “Senate Bill 690 is a legislative attempt driven by the industry to make sure there’s funding after next year.”
Senate Bill 690 would set apart funds each year to promote the $18.1 billion travel and tourism industry in Michigan.
“We’ve been able to demonstrate a positive return on investment for every dollar the state spends on out-of-state advertising,” said Zimmermann. In the last four years, the ROI has been $2.82 for every dollar spent, most of which ends up back in the treasury the same year it is spent.
“Next year, with the $30 million, that’s the first year we’re going to be able to have a national marketing campaign and it would be a tragedy if the next year we weren’t able to continue that,” said Zimmermann. If Senate Bill 690 does not go through, the campaign will go back to its regular appropriation process.
On the convention side of the travel and tourism industry, Ron Brondyke, vice president of sales for the Amway Hotel collection, said the JW Marriott, celebrating its one-year anniversary this month, has already made a strong impact.
“The bringing on of the JW has really changed the dynamics of what we can do downtown with meetings and conventions,” said Brondyke.
Brondyke said the company has landed the 2009 RCMA Conference (Religious Conference Management Association) — “the darling of the industry” — would not have been possible without the JW Marriott.
“We would not have been able to secure this convention into Grand Rapids without the JW because that brand gives us the national notoriety that it requires to secure programs like that.”
Grand Rapids successfully competed with Fort Lauderdale and Tampa for the International Assessing Association convention in 2013. That convention will account for 3,000 hotel rooms per night, according to Brondyke.
“I watched the reaction of these other cities,” said Brondyke, “and they walked out scratching their heads — and it’s happening more and more.”
Brondyke referred to cities like Memphis, San Antonio, Louisville, Cleveland and others as competition for Grand Rapids’ convention business.
“If you look at all of those cities, they are probably closer to being second-tier markets than we are, but we beat their pants off. The hardest part of it is just persuading the client to come in and look. Once they’re here, they buy.” BJX