Bill Geist's Zeitgeist

What DMOs Do

Those of us in Destination Marketing often chuckle with each other that our families simply have no idea of what we do. Destinations International's Jack Johnson is on a mission to ensure that what we do is a shared community value (see yesterday's Z-News).

In the meantime, we refer anyone that doesn't understand what DMOs do to a recent article in the Grand Rapids Business Journal where the writer really went deep. And, let's be clear...that's a rarity these days.

For those of us in the Destination Marketing world, it's nothing we don't understand. For my friends from the outside, this article is a pretty sensational view of the work that DMOs do on your behalf. 

Can We Just Say It?

A recent article in Travel Weekly cites tourism providers and experts claiming that Mexico's current Terrible, Horrible, No Good, Very Bad Year is because of an over-supply of hotel rooms and Sargassum. And, while these two forces are never good, they could be mitigated by a well-financed and strategic marketing effort from the country's Tourism Board.

Which, of course, no longer really exists...as its previous $300 million budget has been reassigned to develop rail service on the Yucatan Penninsula. Tourism promotion is now, apparently, being handled by Mexico's Embassies around the world (can you say incoherent?).

And, now most (not all) of the country is seeing significant declines in occupancy and revenues. I get that Sargassum sucks. But, I gotta call it like I see it. Without a strong invitation to visit, Mexico will continue to suffer.

Sadly.

 

Where We Spend

According to new data from Skift, we eat when we travel.

That is, of course, not a surprise...but just how much we spend on culinary experiences may be.

If one takes transportation to and from a destination out of the equation (43% of total consumer travel spend and, at least in my mind, an unavoidably sunk cost), we spend just under 40% of our remaining travel budget on food.

Isn't it time we begin to have a serious conversation about the restaurant industry stepping up to have a more meaningful role in the marketing of our communities? Hotels have borne the burden alone far too long.

Just sayin...

Scratching my Head 'til it Bleeds

As the legislative machinations continue in the drive to federally reauthorize Brand USA (this country's Destination Marketing Organization) a travel industry association is lobbying to effectively kill the bill.

It's no surprise that Congress is thinking nothing of increasing the inbound fee layered onto international arrivals. It's easier than the mental exercise required to do the math that international visitor spending is one of this country's greatest exports. But, we're talking $7 here.

And, that is apparently enough to cause the Airlines For America (A4A), an industry trade group whose members includes American Airlines, United, Alaska Airlines and Hawaiian Airlines to oppose the reauthorization of Brand USA. Their CEO actually said, that "air travelers are already overtaxed, and we oppose taxing them for anything other than services provided by the government.”

Ummm...isn't inspiring people to fly here an important service of the government? And, hasn't Brand USA facilitated $5.2 billion in revenue for American airlines since 2013?

I'm sorry. I simply don't understand the logic here.

Do you?

The Unintended Consequence

We've really gotten to a point in our society that we elect people that clearly don't understand how all this works. 

Take Solvang CA. Some City Council members there decided that they should put the contract for Destination Marketing up to bid (is there a city council chat room where this idiocy is getting lift...cause it's happening across the county with increasing frequency).

Ultimately, the Council in Solvang severed the contract with its CVB and its CEO, Digital Media Director and Accountant were let go last week. Then, the City clearly realized its folly and extended limited funding through this month.

When asked WTF, the Mayor said, "August is a busy month for tourism in Solvang, and keeping the Visitors Center open during that time was a priority for us all."

Ya think?

“This is also a crucial planning time for fall events,” he said. “By extending funding, we are able to support the Visitor Center ambassadors as well as two full-time staff dedicated to event planning, social media (and) website maintenance including an events calendar, film and sales.”

Yeah...ooops?

The Mayor went on to say, “Tourism is very important to the City Council. It is essential to provide helpful information to tourists and give them a reason to return to Solvang with its cherished annual events.”

As that takes funding a talented staff of Destination Marketing professionals, apparently not.

Sigh.

Are Visitor Centers Still Relevant?

We hear that question a lot. Since we all carry more computing power and information on our mobile devices that the astronauts did 50 years ago on the trip to the Moon, who needs physical Visitor Centers anymore?

The answer turns out to be smart Destination Marketing Organizations. Check out the recent article written by our friend Virginia Haley of Visit Sarasota County. She reports that between January through March of 2019 (the high season in Sarasota), her Visitor Center staff saw a 46 percent increase in traffic as compared to the same months in 2018.

So, don't shutter your Visitor Center just yet...rethink it. Which is what Visit Eau Claire's Linda John did as she opened her new "Experience Center" earlier this year. You can hear Linda's story on the new DMOU podcast series, launched earlier this month.

Still relevant? And then some.

Turning the Tables

It's always dangerous to base an opinion regarding a destination news story on one source; nuance is everything.

But, the story coming out of Putnam County NY over the past few weeks is almost too weird not to believe it. I mean, you simply can't make some of this stuff up.

The Putnam County Legislature has been pressuring its CVB for more accountability over the past year. The CVB has, for whatever reason resisted. Frustrated, the County placed an ad for a new Executive Director in May, even though the CVB is an independent agency.

At some point, the CVB Board and its CEO decided to close up shop, shut down the website, close the office and returned State grant funds. And, sometime around July 1, they actually did it. Now, County Legislators are facing the rest of the summer season with no destination website and no Plan B.

Destination Marketing Organizations have often had to tread carefully with their funding partners for fear of retribution in the form of canceling a contract, regardless of the pain that shuttering a DMO would have on local businesses.

Now, government will have to weigh whether messing with a DMO could result in the same pain visited upon their constituents if the organization says, "screw it," and closes up shop. 

Crazy...

It All Starts with a Visit

It was ten years ago this month that Irving's Maura Gast unleashed the phrase "It All Starts with a Visit" during her closing address as Chair of Destinations International. If she had a Franklin for every time that phrase has been uttered over the past decade...well, let's just agree she wouldn't need to purchase a lottery ticket ever again.

It surfaced in the media again last week as Southern Delaware Tourism announced a collaborative Visitors Guide with Sussex County Economic Development. As CEO Scott Thomas said, “All the time, we see first visits turning into summer vacations that become beloved traditions families share for generations. For entrepreneurs and business executives, first visits often lead to serious, detailed inquiries about our local business climate and, from there, to new local businesses. It just makes sense to offer information of interest to both visitors and entrepreneurs in the same resource guide because the two groups often overlap."

As Tourism is the first date for Economic Development, this is an interesting partnership...and I can't wait to see how this plays out.

And, for more thought leadership from Maura, don't miss the chance to listen to her recent interview on the recently resurrected DMOU.

The Tax You Don't Pay

We hear it all the time. Elected Officials often reject the idea of raising Hotel taxes because, regardless of the ROI, they fear that voters won't understand (maybe they're the same people that don't understand that vegi-burgers are made out of vegetables). They fear the electorate will only hear the word "tax" and vote against the measure or, more importantly, them.

The Wichita Falls CVB has just launched a new campaign to encourage voters there to approve a Hotel tax increase with a brilliant twist: It's the Tax You Don't Pay."

As much as we've all explained it that way...this is the first time I've seen it actually lead the conversation. We typically tout all the advantages of such an increase and follow-up with the "and the best part is residents don't pay" angle as the logic. But the DMO in Wichita Falls is attempting to take the issue off the table first.

Smart...and I can't wait to see how this plays out.

How Do You Like Us Now?

Over the past decade, Iceland rapidly became one of those destinations that moved up on everybody's Bucket Lists. It got to the point over the past couple years that some on the island country were bemoaning the crush of visitors and encouraging the government to do something to stem visitation.

Then Wow Airlines collapsed...and inbound travel to the country for 2019 is projected to drop by 17%. Visitation was down 24% last month. Unemployment is up and the Airport is laying off 315 workers. Hotels are slashing prices. The country's total economy is now projected to drop by roughly 2% after a decade of growth.

So, to all those who clamored for the "tourist problem to go away?" How do you like us now?

It's simplistic and unsophisticated to say that tourists are the problem (we are more often the solution). The sophisticated response is to better manage the visitor economy, n'est pas?