Economic Development, Marketing, PR & Advertising, and Travel & Tourism

Tourism ROI continues at record pace

Visitors contributed $22.8 billion to state’s economy last year.

March 27, 2015
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Grand Haven
Michigan’s beaches, including those along the West Michigan shoreline in Grand Haven, are consistent draws for out of state tourists. Photo by Johnny Quirin

Visitor spending reached record levels in 2014, with visitors spending $22.8 billion in Michigan, much of that due to the Pure Michigan campaign.

The state’s tourism campaign generated $6.87 for each dollar spent on Pure Michigan advertising in 2014, according to reports by Tourism Economics and Longwoods International released last week during the Pure Michigan Governor’s Conference on Tourism held in Grand Rapids.

Domestic and overseas travelers spent $21.3 billion and $1.5 billion, respectively.

Visitor spending motivated by the Pure Michigan campaign generated $1.2 billion for Michigan businesses and $85.4 million in tax revenue received by the state, resulting in a return on investment of $6.87 per dollar spent — up from $6.66 in 2013.

Last year Michigan spent $12.4 million on the campaign, including $3.7 million in the region and $8.7 million in the rest of the nation.

The cumulative ROI since the Pure Michigan campaign began in 2006 is now $4.81 per dollar spent, up from $4.50.

“Michigan’s tourism industry is a strong pillar in our state’s economic foundation,” said Gov. Rick Snyder.

Snyder credited the Pure Michigan campaign, saying, “We have been able to work with our industry partners to showcase all our state has to offer to a national and global audience.”

The campaign’s success also has supported job growth in the state.

The report showed visitor spending directly supports more than 214,000 Michigan jobs. Without tourism jobs, the state’s 2014 unemployment rate of 7.3 percent would have been 13.3 percent, according to state tourism officials.

Out-of-state visitors influenced by the Pure Michigan campaign made more than 4.1 million trips to the state, Longwoods International reported.

Tourism Economics noted Michigan hosted 113.4 million visitors in 2014. All visitor sectors grew thanks to “improving economic conditions and moderating growth in transportation costs encouraged travel,” according to Tourism Economics.

Pure Michigan’s 2015 national advertising campaign launched March 16. The campaign will air more than 5,000 times through early June on ABC’s “Good Morning America,” NBC’s “Today Show” and national cable channels.

The total budget for this year’s national advertising campaign is $12 million, including $2 million contributed by four national partners: Ann Arbor, Grand Rapids, Great Lakes Bay Region and Traverse City. National partner spots will be added to the rotation beginning the week of April 6. Each partner contributed $500,000 as part of the Travel Michigan Partnership Advertising Program.

“Investments in Pure Michigan continue to drive new visitors and new spending to the state,” said David West, vice president of Travel Michigan, part of the Michigan Economic Development Corp. “Our tourism industry and Pure Michigan brand are stronger than ever, and we look forward to even bigger things in the years to come.”

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