State tourism ads bring big payoff

AUGUSTA — A state advertising campaign to boost tourism produced financial returns of 18 to 1, according to state officials.
The Office of Tourism said the 1997 summer and fall advertising campaigns that cost nearly $1 million generated nearly $18.8 million in state taxes during the 12-month period that ended October 1998.

Sizing up tourism
An evaluation of the state's tourism advertising last year* found that $962,000 spent generated $224.5 million in tourism spending and $18.8 million in state taxes.
Where visitors came from:
Boston 16%
Northeast & mid-Atlantic: 84 %
Length of stay:
Overnight: 66%
Day Trips: 34 % *Fall 1997 through fall 1998
That return estimate is based on a state economic model and the results of a baseline survey conducted by a Toronto-based marketing research firm.

The state has previously released parts of the research showing the economic payback from the 1997 ads, but Thursday was the first time information covering a yearlong span was released.

"We are growing in all regions of the state and all times of the year, and that is good news," said Gov. Angus King. He called the results a "conservative" estimate of the impact of the advertising.

The 1997 advertising results, which include tourist visits from October 1997 to October 1998, will now be used as a baseline to measure the effectiveness of state marketing efforts on an annual basis.

In recent years, the state began focusing more intently on developing tourism and provided increased funding. In 1997, the state began conducting extensive tourism research.

The state's goal is not only to boost tourism overall, but to lengthen the seasons and spread the wealth to all parts of the state.

State officials estimate that tourism is the state's second largest industry (behind the paper industry) with more than 101,000 jobs and a $2.2 billion total payroll.

The advertising effort is continuing for a third straight summer in 1999. Next week, summer television spots will start running in New York that for the first time are specifically aimed at the metro area.

The summer print advertising campaign also kicks off in the next few days.

The total summer advertising budget is $550,000, the same as last year.

However, this year's advertisements will feature a new wrinkle based on market research.

Some of the advertisements, designed by Swardlick Marketing Group of Portland, will portray Maine as more exciting and active place than past advertisements, which often featured scenic or "icon" images such as lighthouses.

Many of the advertisements in 1997 positioned Maine as a place to get away from hectic lifestyles. The famous icons will not be abandoned.

The new advertisements, which have not been released, include scenes of nightlife, good restaurants and antique shops. The print advertisements will feature multiple images and less text than in the past.

"It is an effort to show that after the lights go down, there are still places to go and things to do," Swardlick said. "We will show all the many exciting things that Maine has to do, not only the outdoor adventure activities, but all the interesting stuff in the state's towns, cities and villages."

This shift in focus is occurring despite the acknowledged success of the old advertisements. Swardlick said he hopes the new ads will appeal to a person who has not thought about vacationing in Maine before and that they will continue the momentum started in 1997.

That momentum has apparently been significant.

The 1997 advertisements appeared in such publications as the Boston Globe and Sports Illustrated and were aimed primarily at the New England and Middle Atlantic states.

According to the study performed by Longwoods International, the 1997 advertising prompted 397,000 new day visits and 711,000 new overnight visits.

The average money spent by a day visitor was $89.43, while the average spent by an overnight visitor was $265.77.

Overall, tourism in the 12-month period ending October 1998 generated $311.5 million in state and local taxes, including $189.9 million in sales tax revenues, $85.8 million in personal income taxes and $41.8 million in gasoline taxes, according to state officials.