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My Left Nutmeg

Dan Malloy proposes investment in CT Tourism

by: sufi

Tue Jul 20, 2010 at 09:20:45 AM EDT


According to the New London Day:

Saying it would restore support to a major state economic driver that has been damaged by two years of budget cuts in Hartford, Democrat Dan Malloy on Monday proposed a $15 million campaign to market Connecticut as a tourism destination.

On a tour of southeastern Connecticut tourism-related businesses, including the Mystic Seaport Museum, the Mystic Aquarium and Cross Sound Ferry in New London, Malloy, who is seeking the governor's office, and his running mate, Comptroller Nancy Wyman, said Connecticut must revive its dormant marketing campaign to lure out-of-state visitors, and said the state's investment would be returned as much as threefold in new revenue and business activity.
"The idea that we have a zero ... dollar advertising budget is a vast embarrassment to me and should be to everyone else," Malloy said, referring to the decision to eliminate the budget for state tourism marketing in the budget approved last fall by Gov. M. Jodi Rell and the state legislature
.

with greater state support, said Stephen Coan, the aquarium's president and chairman of the bureau, the group could purchase far more expensive advertising in coveted markets like New York and southern Massachusetts.
"Those are two of the most expensive markets to buy media in, and currently we have very little media exposure in those areas," Coan said. "The largest population is in those areas and therefore the potential is huge within those markets. ... We have to be investing exponentially in those markets in order to make a dent."

"What I'm proposing is not risky at all: to invest in tourism, an industry that already pays the state $1.3 billion in revenue, which we believe could be enhanced," Malloy said

Ned Lamont, looked favorably on new tourism business investment, but also said he was loath to make a commitment to new spending in what is shaping up to be a very difficult budget season next spring.

"I suppose as a politician I should say '$16 million,'" Lamont said with a chuckle. "Look, I can't out-promise Dan. I think tourism dollars, to the degree to which they generate jobs, are something that are going be very important."
"But," Lamont added, "when you've got a $3.5 billion (projected) deficit, I think you've got to be very careful about what promises you make. The first promise I'm going to make is an honest budget; that's the only promise I'm making right now."

Malloy issued no such qualification.

sufi :: Dan Malloy proposes investment in CT Tourism
There was more written on this in the CT Mirror:

in one vital area, tourism promotion, Malloy announced Monday that Connecticut needs to start spending more right away.

The former Stamford mayor unveiled a tourism platform that would restore state government's all-but-abandoned statewide tourism marketing budget with a $15 million investment.
In the context of an overall state budget that tops $19 billion this fiscal year, and a projected deficit for 2011-12 that approaches $3.4 billion, $15 million for tourism promotion is small change. But Malloy said that considering the annual economic activity tourism generates in Connecticut, the investment is crucial.

The last time state government studied the issue, in 2004, the Commission on Culture and Tourism estimated tourism generates over $9 billion in personal income and more than $1.7 billion in state and local tax revenue. The U.S. Travel Association estimated tourism's impact on Connecticut last year at $9.3 billion in economic activity and $1.4 billion in tax revenue.

"Connecticut's tourism and hospitality industry is a major driver of economic activity," said Malloy, who announced the plan alongside his running mate, state Comptroller Nancy Wyman, during campaign stops at Mystic Seaport and Mystic Aquarium & Institute for Exploration. "If we can make better targeted and more effective investment in this sector, it will pay our state back in countless ways.  Connecticut tourism helps grow jobs, increases state revenue, and preserves the art and culture that makes Connecticut such a great place to work, live and raise a family."

Malloy's rival in the Aug. 10 Democratic gubernatorial primary, Greemwich businessman Ned Lamont, said tourism investments that could create new jobs deserve attention. But given the size of the next budget deficit, any plan to add $15 million in new spending should be accompanied by a plan to cut spending elsewhere or to raise the necessary funds. "Every $15 million promise you make you've got to pay for," Lamont said. "I'm not making any promises I can't keep."

I just disagree with Ned Lamont on this. I don't believe spending $15 million on tourism means we have to cut spending elsewhere because an investment in tourism pays for itself tenfold.  As a liberal democrat, I believe the government can and should increase spending to stimulate the economy. In some cases, like the case of tourism, this spending can pay for itself. In other cases, I support raising taxes on the super rich to pay for programs that benefit the public.

Philosophically, my views on taxation and spending are just more in line with Democrat Dan Malloy, which is why I am happy to support him in this primary.  

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Will there be funds for.... (3.60 / 5)
a plaque in front of the Garde Theater in New London that states that it was a traditional venue for gubernatorial debates until 2010?  

If I were Notcho... (0.00 / 0)
you'd get a troll-rating for your snark.

But I'm not, so -- Touche!


[ Parent ]
If I weren't natcho (0.00 / 0)
you'd probably get a snark for your trolling,

But I am so you don't...


[ Parent ]
Sounds like Lamont is taking a pass on this area (3.67 / 3)
To me it sounds like Ned doesn't seem to think investing in tourism is a priority in his "honest budget." Yet I think Sufi raises a good point about the ROI of tourism investment. Another thing to check out is this article on Utah's tourism budget and their ROI.

Maybe a mistake for Ned to not reconsider this?

Blog | Twitter


Great article (4.00 / 3)
I'll post an excerpt from it here:

As the saying goes, "To make money, you have to spend money." The Utah Office of Tourism has figured out a way to make lots of money for the state despite spending less than before on marketing. According to a report released Thursday by the tourism office, its spring and summer advertising campaign generated $222 in economic impact for every dollar the agency spent marketing the state to the rest of the nation,
the highest rate of return on investment the state has ever seen.

The 2009 campaign netted $18 in tax revenue for every dollar spent in the tourism ad budget, which translated into more than $56 million in tax revenue for state and local coffers and more than $705 million in overall economic impact for the state. "Even when the economy was its toughest, we were getting traction," said Leigh von der Esch, managing director of the state Office of Tourism. "It's important we maintain the funding because we're spending it well and the message is resonating."

"With the economy being bad, what would have happened is lots less travel (to the state)," she said. "Through the advertising, there were 800,000 trips that probably would not have happened otherwise, (and) $700 million of economic impact and $56 million in state and local taxes." While the positive economic impact of the campaign would seem to be evident, Dave Williams, co-deputy director of the tourism office, said he hopes the Legislature will see fit to continue funding the program at least at its current level. "Tourism is an investment," he said. "Investing in tourism promotion generates revenue for the state. It's not just one of those areas that keeps draining money. "It brings in money that can go towards education, roads, health care and all the things that we're dealing with."

I definitely think it's a mistake for Ned not to reconsider this. On this issue, I think Malloy is completely right!

"If tyranny and oppression come to this land, it will be in the guise of fighting a foreign enemy."--James Madison


[ Parent ]
Tourism? (4.00 / 2)
So, in April I was in CT. I was most likely considered part of those "tourism" dollars. I stayed at the Omni Hotel in New Haven and due to tight finances it is one of the two trips that I will be making this year.

So, since my dollars are considered "tourist dollars", just why was I there? A Bat-Mitzvah. [My other travel this year is to Boston in Oct... and yes, it's for a Bar-Mitzvah for my other cousins youngest son].

That's right. With money so tight these days people are NOT traveling (did someone not realize that unemployment is not just a problem in CT?) no matter how many times there are ads on TV. What people are doing is traveling to major family events rather than family vacations.

If that was taken into consideration, then CT would be legalizing gay marriage and promoting itself the way Virginia used to (the place for lovers). They would be focusing money at building an industry that would create a demand for people to travel to CT; the ability to attend the gay weddings of their friends.

In general I would agree that pumping up tourism is a good thing. But in today's global economic meltdown, I would love to see where that supposed tourist is coming from. Just whom would this money be spent marketing to?

Giving $15MM to some big media companies to promote that CT is a place to visit because you can visit the seaport isn't well spent money ("advertising budget" from the above Malloy quote).

Here is a better idea than pissing away $15MM.

Go to Mystic Seaport or Aquarium and get a voucher for 50% off a Quassy Express ticket (Pizza or Fried Dough, Small Soft Drink & All-Day Ride and "Saturation Station" pass. for $8.25) and Free Parking at the park. And if you attend the Park you get a voucher of 50% off a Mystic Pass. And both would give out a discount pass to KidCity (and KidCity can do the same for both of them).

In other words, find synergies between destinations and leverage those. And the state CAN help. Make some of that $15MM available to help offset the savings to the customers. For instance every voucher turned into the state from the venues would be worth $5.00.

That would cost the State a hell of a lot less and would be taking people that ARE spending money and saves them some money so that they will spend more.

Use the resources you have to cross pollinate that tourist dollar that is now coming in with discounts. This isn't a new idea. Steal from what works... the Southern California Park Pass that bundles    
*  3-Day Disneyland Park Hopper
* Disney California Adventure Park
* Universal Studios Hollywood
* SeaWorld San Diego
* San Diego Zoo
* San Diego Wild Animal Park

into one pass for a 30% discount. [see citypass.com for more ideas]

My point is, for a much smaller outlay than Malloy is suggesting the State can support tourism and do so in a much more effective manner than pumping dollars into big media companies. Think of this as micro-branding. You are selling to an audience that is already buying rather than attempting to attract new people to spend.

Add in some wi-fi connected terminals at these places that let you "yelp", "upload a photo of you here directly to your facebook", and "check in with Foursquare" at various locations and you can leverage the social networks as well (run a contest that the best daily "yelp" gets 50% off on a night stay at the Omni, the best monthly "yelp" gets a free weekend). All this for a great deal less than pissing away $15MM to media companies and the production companies to advertise to a mass market of the unemployed.

So, yes, Malloy has a "right idea", but he is on the wrong train and traveling down an old worn and broken down track that won't get people to CT anymore than it gets people to Utah, Florida or Arizona. What CT needs is not more of the old, but someone who is thinking about leveraging the new. If you are going to have new spending, make it count.

So, I disagree with Malloy's direction (a waste of $15MM) [but not the idea that the state should invest in expanding tourist dollars spent]. And I disagree with Lamont's not spending money to make money as I think this can be a low cost investment that can pay off.

So, both get -1 point for being wrong. On the other hand, I will give Malloy 1/2 a point for making this an issue that should be discussed at the Gubernatorial level.

The question is not what you are, we already determined that, we are now negotiating price.
electrealdemocrats.com Online since 3/07 -- TimetogoJoe.com Online s


Coupons and WiFi? (4.00 / 3)
They're a start, but I have doubts that anyone will be vacationing in Connecticut because of them. Connecticut is not California. California is a natural vacation destination, Connecticut hasn't had enough promotion to get it to that point. No one will look at 50% off of Quassy and decide they want to vacation here.  

[ Parent ]
If it didn't work (3.00 / 1)
then people wouldn't be doing it.

and people are.

Think of the Fairfield County Entertainment book. It retails for $35.00 and has over $30,000 in coupons. These books are sold as fundraisers... Imagine if the same attraction and food offers were bundled together by the State of CT and were made available for free through every hotel in CT and surrounding areas.

In today's economic times people are making decisions on what they will be doing based on what it will cost them.  

The question is not what you are, we already determined that, we are now negotiating price.
electrealdemocrats.com Online since 3/07 -- TimetogoJoe.com Online s


[ Parent ]
My point was that... (3.67 / 3)
I'm sure the California pass works great when people need to decide to go to Florida or California, not to get people thinking about Connecticut as a vacation destination which is the problem.

I'm sure that a budget package would be a great part of a tourism plan, but it can't be the ONLY plan.


[ Parent ]
Start small (0.00 / 0)
then build...

I remember working the State Fair in Danbury back in the late 70's. In '77 the fair had a very bad year. I remember the carnival operator whom I worked for (Great American Shows) giving us discount coupons the week before the show went on and telling us to travel up to 20 miles in every possible direction and drop them off at every bar we passed. In '78 we were much busier (even though there was rain).

Imagine a coupon book called Connect in Connecticut put in every hotel room within 20 miles of the CT border starting in May and going through September. Someone who was going to Springfield to the Basketball Hall of Fame for the Enshrinement Week in August stays in a hotel and finds out that there are things to do just 30 minutes away to the southeast... Was he planning on coming to CT? No. But now, he just may.

Enshrinement Week is expected to pump $5 million into the local economy, Doleva said. It is hoped the move to August will spark additional interest and attendance with the dates in the midst of the summer travel season, he said. It's also likely the scheduling timeframe could become permanent, according to Doleva.

Why shouldn't CT get a piece of the $5Mil? These people are already in the area, let's get them to cross Enfield and see the better state.:-)

Before you dump millions into Madison Avenue and the networks for advertising in Nebraska, maybe an effort should be made to grab as many day-trippers from the surrounding area as you can at a much lower cost per head.

Prime the pump, then let's see if the economic engine can support further growth.


The question is not what you are, we already determined that, we are now negotiating price.
electrealdemocrats.com Online since 3/07 -- TimetogoJoe.com Online s


[ Parent ]
Why not restrict who gets the contract? (0.00 / 0)
Keep the money here in CT.  There are several small advertising firms in the state that would love an opportunity to make it to a larger stage.  A good friend of mine owns such a firm out here in Eastern CT.  It would probably cost a lot less and people should be pleased that CT tax dollars stayed in the state.

[ Parent ]
Just curious... (4.00 / 3)
But how would the state pay for soliciting, bundling, printing and distributing these coupon books?

How much would a program like this cost?

It would cost something wouldn't it?

Right now I can go to my library, just for one example, and get reduced cost passes to numerous "attractions" in eastern Connecticut. Similar bundles are available through the town's Seniors group. Most of these are bundles that the regions attractions put together and in many cases are reciprocal agreements done with a group of businesses. It's possible to get discounts for restaurants, B&B's tours and such without a lot of effort. But it is not something coordinated at the state level because there isn't any money at the state level to do that.

Last night I was at a Democratic event held at one of Connecticut's Wine Trail establishments. How did I know it was a Wine Trail associated business? Because there was a large blue state sign proclaiming Connecticut Wine Trail out front. And there was another up the road, leading to it...

However, the Heritage Trail Winery doesn't show up on the Connecticut Wine Trail Association map:

http://www.ctwine.com/index.ph...

So again, how are you going to pay for a statewide tourism initiative?

Seems to me Dan has some very good ideas to start with.


[ Parent ]
You're 1/2 right as well (3.75 / 4)
I think your voucher idea is good, but the state still has to market itself.  Here in Eastern CT we have two main sources of income, tourism and the defense industry.  The casinos do plenty of their own advertising, but places like the Seaport and the Aquarium need all the help they can get.

    I worked at the Seaport for a short period of time and it was wonderful, but they have no money to spend.  They were living off of grants and their endowment which had taken a severe hit after the stock market tanked.  The position I was going for no longer exists, and it is a damn shame.  Try living here and you'll see why Eastern CT needs all the help they can get.


[ Parent ]
Eastern CT is a diamond in the rough (4.00 / 3)
sorry folks who do not live in eastern ct., but this part of the state has everything you can asked for in beauty; the shore line, the arts and the quality of life. However, this part of state is often ignored. I am glad Dan and Nancy are paying attention to us.  

[ Parent ]
Hartford only noticed Eastern CT (4.00 / 1)
when the casinos opened and saw it as a source of revenue.  The formula they devised to divvy up the slot money between all CT towns and cities was a typical sham perpetrated by the legislature.  

[ Parent ]
Malloy is on the right track, on the right train, (4.00 / 4)
running in the right direction.

Rell's lack of leadership has definitely affected Eastern Connecticut's tourist based economy adversely. Any leadership that takes action on supporting our economic engines is welcome...

That budget cut, said officials from the seaport, the aquarium and the ferry company, had dumped the responsibility for luring tourists from New York, New Jersey, Pennsylvania and Massachusetts onto the tourist venues themselves. And they say it has cut into business not just for them but for all the other state businesses that thrive on the disposable income of outsiders, from gas stations to bed-and-breakfasts.

"Our only option is to go it alone, and we don't have really deep pockets to do it," said Stephen C. White, the president of Mystic Seaport. "So we're really feeling it."

Investing state money to reach tourists coming from Pennsylvania, New York and New Jersey heading to Massachusetts, New Hampshire, Vermont and Maine and points north and vice versa is money well spent.

I've sat through enough seminars and forums on Eastern Connecticut's tourist based economy, what drives it, how to support it and promote it and what it offers to the regions towns that Malloy's words are a welcome light of hope. I would only qualify the proposal with suggesting that 15 million be spent here in  the Second CD.

And let's get the Vermonter running through Eastern Connecticut.


Vermonter! (3.67 / 3)
You're really on the right track!  In the good ol' days the New Haven RR had several named trains that ran to different parts of New England.  It would be nice to see a revival of that in some form.  

    The tracks run in close proximity to Foxwoods and right through the Mohegan reservation.  There was an idea put forth some time ago to run a monorail to Foxwoods and it never went anywhere, but nowadays with the renewed emphasis on greening our society, maybe the monorail will be back.  Trust me, if you lived around here, you'd be a fan of rail, especially if you've almost been hit by one on the highway.  The amount of tour buses is unbelievable, even in this down economy.


[ Parent ]
Trains! yes. (4.00 / 1)
We have the rails but they are not used. Take a train from Norwich through the Northeaster corridor. Bring the people from hartford to norwich to new london. It is already there except Rell and Rowland didn't bother to do it. I remember taking the Montreal train from New London through Vermont up to Montreal(sp)

[ Parent ]
 
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