Ohio Tourism Funding: The Business Case

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2002 Travel Year
October, 2003
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Coming This Fall!
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Good News

• Economic Impact Study
• Accommodation inventory
• Accommodation Survey
• We need your Help and Co-operation

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Good News Continued

• Travel Barometer
• State Parks
• Airport Stats
• TIC Stats
• Hotel Stats
• Attraction Estimates
• Other ?

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Todays Presentation

• 2002 Travel Year Research Data
• Visitor Volumes, profiles, etc.
• Trending Data
• Nationally/Ohio
• Ohios image
• Accountability

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2002 Travel YearResearch
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The Research Program

• Visitor Research
• Travel USA
• Detailed Visitor Profile
• Advertising Research
• Image
• Campaign Diagnostics
• ROI

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Methodology

• Travel USA
• 200,000 households annually
• Mail Panel
• Overnight Visitor Research
• Return to sample
• Day Visitor Research
• Representative sample in day trip market

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Travel USAU.S. Travel Market
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Size of the U.S. Travel Market 2002 Overnight
Trips
Total 1.512 Billion
Marketable Pleasure 614 Million (40)
Visit Friends/Relatives 615 Million (41)
Business 283 Million (19)
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U.S. Overnight Marketable Trip Mix 2002 Travel
Year
12
U.S. Market Trends 2002 vs. 2001
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U.S. Market Trends 2002 vs. 2001
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Size Structure ofOhios Travel Market 2002
Travel Year
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Size of Ohios Travel Market
Total 152.6 Million
Overnight Trips 33.8 Million (22)
Day Trips 118.8 Million (78)
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Size of Ohios Travel Market 2000 to 2002
154.8 Million
152.6 Million
138.5 Million
17
Overnight Trips to Ohio
Total 33.8 Million
Marketable Pleasure 9.2 Million (27)
Visit Friends/Relatives 17.4 Million (52)
Business 7.2 Million (21)
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Overnight Trips to Ohio 2000 to 2002
34.2 Million
33.8 Million
33.1 Million
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Ohios Overnight Trip Segments
20
Ohios Marketable Trip Segments
0
Casino, Ski Cruise
21
Ohios Marketable Trip Segments 2002 vs. 2001
Casino, Ski Cruise
22
Special Event Trips
Base Overnight Special Event Marketable Trips
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Overnight Marketable Trips by Month
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Overnight VFR Trips by Month
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Overnight Business Trips by Month
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Regions Visited on Overnight Trips
Total 33.8 Million Trips
Northeast Region 15.1 Million
Northwest Region 7.3 Million
Central Region 9.8 Million
Southwest Region 10.3 Million
Southeast Region 3.1 Million
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Regions Visited on Overnight Trips 2002 vs.
2001
28
Overnight Marketable Trips to Ohio 1994 to 2002
5
29
Ohios Regional Market Share Overnight
Marketable Trips
10
Regional market includes, Michigan, Indiana,
Kentucky, West Virginia and Pennsylvania
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Day Trips to Ohio
Total 118.8 Million
Marketable Pleasure 40.2 Million (34)
Visit Friends/Relatives 44.7 Million (38)
Shopping 19 Million (16)
Business 14.9 Million (13)
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Marketable Day Trip Mix
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Main Destination of Ohio Day Trips
Total 118.8 Million
Northeast Region 34.8 Million (29)
Central Region 33.7 Million (28)
Northwest Region 16.6 Million (14)
Southwest Region 25.8 Million (22)
Southeast Region 7.9 Million (7)
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Expenditures
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Travel Expenditures in Ohio 2002 Travel Year
Total 24.7 Billion
Overnight 15.8 Billion
Day 8.9 Billion
Source Based on Longwoods domestic data for the
2002 travel year and Rovelstad Associates
estimates for 2001.
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Travel Expenditures by Sector
Total 24.7 Billion
Food 8.6 Billion
Accommodations 2.9 Billion
Recreation 2.8 Billion
Retail 6.2 Billion
Transportation 4.2 Billion
Source Based on Longwoods domestic data for the
2002 travel year and Rovelstad Associates
estimates for 2001.
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Travel Expenditures by Sector Overnight vs. Day
Trips
Source Based on Longwoods domestic data for the
2002 travel year and Rovelstad Associates
estimates for 2001.
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Traveler Profile Overnight Marketable Trips
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State Sources of Business
Base Overnight Marketable Trips
39
Urban Sources of Business
Base Overnight Marketable Trips
In-State
Out-of-State
40
Sources of Business
Base Overnight Marketable Trips
States contributing more than 10
States contributing 2 - 10
DMAs contributing more than 4
41
Gender
Base Overnight Marketable Trips
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Age
Base Overnight Marketable Trips
Ohio U.S. Norm Average Age 43.1 44.2
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Marital Status
Base Overnight Marketable Trips
44
Household Size
Base Overnight Marketable Trips
45
Income
Base Overnight Marketable Trips
46
Education
Base Overnight Marketable Trips
47
Employment
Base Overnight Marketable Trips
48
Occupation
Base Overnight Marketable Trips by Those Who Are
Employed
49
Trip Profile Overnight Marketable Trips
50
Planning Cycle
Base Overnight Marketable Trips
51
Information Sources Used for Planning
Base Overnight Marketable Trips
52
Information Sources Used for Planning (Contd)
Base Overnight Marketable Trips
n/a
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Use of Internet for Trip Planning
Base Overnight Marketable Trips
Ohio
U.S. Norm
54
Percent Who Booked In Advance
Base Overnight Marketable Trips
55
Booking Cycle
Base Overnight Marketable Trips Booked in Advance
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Methods of Booking
Base Overnight Marketable Trips Booked in Advance
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Use of Vacation Packages and Group Travel
Base Overnight Marketable Trips
58
Trip Characteristics
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Distance Traveled to Ohio
Base Overnight Marketable Trips
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Transportation Used to Enter Ohio
Base Overnight Marketable Trips
Personal
Commercial
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Total Nights Away
Base Overnight Marketable Trips
Ohio U.S. Norm Average Number of Nights
Away 3.9 4.8
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Length of Stay
Base Overnight Marketable Trips
Total 3.9
Total 4.8
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Accommodations
Base Overnight Marketable Trips
0
lt1
Percent of trip nights spent in each type of
accommodation
64
Size of Travel Party
Base Overnight Marketable Trips
Total 3.6
Total 3.2
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Composition of Travel Party
Base Overnight Marketable Trips
66
Seasonality
Base Overnight Marketable Trips
67
Trip Experiences
68
Things Experienced on Trip
Base Overnight Marketable Trips
N/A
N/A
69
Sightseeing
Base Overnight Marketable Trips
N/A
70
Sightseeing (Contd)
Base Overnight Marketable Trips
N/A
71
Dining/Entertainment
Base Overnight Marketable Trips
N/A
72
Dining/Entertainment (Contd)
Base Overnight Marketable Trips
N/A
lt1
N/A
N/A
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Sports and Recreation
Base Overnight Marketable Trips
N/A
N/A
74
Sports and Recreation (Contd)
Base Overnight Marketable Trips
lt 1
lt1
75
Most Popular Ohio Attractions/Events
Base Overnight Marketable Trips
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Advertising and Accountability Research
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Accountability Research

• Strategic image data
• Travel motivators and hot buttons
• Ohios image versus key competitors
• Illinois, Indiana, Pennsylvania, Michigan,
  Kentucky, West Virginia
• ROI
• Awareness of the 2002 campaign
• Incremental trips in 2002
• Spending in Ohio by the incremental visitors
• Direct taxes (State and Local) generated by that
  spending

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Accountability Research Methodology

• Mail Panel
• Representative sample of advertising markets
• Forced exposure to the advertising

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Ohios Advertising Markets
Flint/ Saginaw
Grand Rapids
Detroit
Lansing
Buffalo
Erie
South Bend
Toledo
Cleveland
Johnstown/ Altoona
Ft. Wayne
Pittsburgh
Lima
Dayton
Indianapolis
Columbus
Youngstown
Wheeling/ Steubenville
Zanesville
Cincinnati
Clarksburg/ Weston
Terre Haute
Charleston/ Huntington
Ohios Primary Markets Ohios Secondary Markets
Evansville
Louisville
Lexington
Parkersburg
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Travel Motivators
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Travel Motivators
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Ohios Hot Buttons

• A fun place for a vacation
• Good for couples
• Good for adults
• Unique vacation experience
• An exciting place

• Must see destination
• A real adventure
• Lots to see and do
• Good for families
• A place I would feel welcome

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Ohios Image vs. Competitors
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Ohios Competitors
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Ohios Image vs. Competitors Adult Destination
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Ohios Image vs. Competitors Exciting
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Ohios Image vs. Competitors Family Atmosphere
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Ohios Image vs. Competitors Entertainment
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Ohios Image vs. Competitors Sightseeing
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Ohios Image vs. Competitors Worry Free
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Ohios Image vs. Competitors Popular
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Ohios Image vs. Competitors Unique
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Ohios Image vs. Competitors Luxurious
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Ohios Image vs. Competitors Sports
Recreation
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Ohios Image vs. Competitors Affordable
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Ohios Image vs. Competitors Climate
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Ohios Image Strengths vs. the Competition
Note Bolded items are attributes that are some
of the most important hot buttons for travelers
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Ohios Image Strengths vs. the Competition
(Contd)
Note Bolded items are attributes that are some
of the most important hot buttons for travelers
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Ohios Image Weaknesses vs.the Competition
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Ohios Image Weaknesses vs.the Competition
(Contd)
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Ohios Image 2000 vs.2002
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Ohios Image 2002 vs. 2000
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Advertising
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Awareness of the Ad Campaign
Total Aware Travelers11.5 Million
Aware 51
Unaware 49
Saw at least one ad.
105
Awareness by Type of Advertising
Saw at least one ad.
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Impact of Advertising on Ohios Image
Saw at least one ad.
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Attributes for Which the Campaign Had the
Greatest Impact
Note Bolded items are attributes that are some
of the most important hot buttons for travelers
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Attributes for Which the Campaign Had the
Greatest Impact (Contd)
Note Bolded items are attributes that are some
of the most important hot buttons for travelers
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Campaign ROI
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Trips Taken Due to Advertising In 2002
Trips Taken Due To Advertising 735,000
Overnight Trips 47
Day Trips 53
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Trips to Ohio Due to Advertising

• Day Overnight Total
• Trips Taken 348,500 386,500 735,000

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Spending in OhioDue to Advertising

• Day Overnight Total
• Total Visitors 348,500 386,500 735,000
• Spending (millions) 25.0 92.8
  117.8

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Taxes Generatedby Advertising

• Incremental Visitor Spending 117.8 million
• Direct Taxes Generated
• State 4.2 million
• Local 3.7 million
• Total 7.9 million

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Bottom Line Campaign Efficiency

• Total trips Due to Advertising 735,000
• U.S. Advertising Expenditures 873,000
• Advertising Cost per Trip 1.19

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Short Term Return OnAdvertising Investment

• Visitor Spending per Ad Dollar Invested 135
• Direct Taxes per Ad Dollar Invested
• State 4.90
• Local 4.20
• Total 9.10

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2002 vs. 2000 Campaigns
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2002 vs. 2000 Campaigns

• 2000 2002
• Media Expenditures 1,190,000 873,000
• Visits Due to Advertising 1,117,000 735,000
• Visitor Spending Due to Ads (millions) 177.2 117
  .8
• Visitor Spending per ad dollar 149 135
• Cost to generate one trip 1.07 1.19

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The Bottom Line

• Advertising generates significant impacts for
  Ohio
• Enhances image
• Generates visitation, revenue and tax dollars
• 2002 results
• Less advertising Less return

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Situation Analysis
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Tourism Is Big Business for Ohio

• The 152.6 million day and overnight trips taken
  in Ohio in 2002 generated
• 24.7 billion in visitor spending
• Thats more than 2,000 for every Ohioan!
• 552,000 direct full-time job equivalents
• 7.626 billion in direct wages
• 1.557 billion in direct taxes
• State Taxes 0.838 billion
• Local Taxes 0.719 billion

2001 Estimates from Rovelstad
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But Tourism in Ohio isFar Below Potential

• Symptoms include
• Over-reliance on visits to friends/relatives vs.
  marketable trips
• Ohio has more VFR trips and fewer marketable
  trips relative to other U.S. destinations
• VFR is a low yield segment and difficult to
  influence through promotion
• High percentage of in-state travelers
• Out-of-state travelers are a great source of
  additional taxes for the state
• But only when they visit Ohio!
• Declining market share within the region

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Ohios Leisure Travel Segments
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State Sources of Business
Base Overnight Marketable Trips
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Ohios Regional Market Share Overnight
Marketable Trips
Down 28 Over eight years
Overnight Marketable Trips
Regional market includes residents of Ohio,
Michigan, Indiana, Kentucky, West Virginia and
Pennsylvania
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If Ohio had Simply Maintained Its 1994 Market
Share - - -
Visitor spending would be at least 1 billion
dollars higher
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Product vs. Image
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An Excellent Product

• Ohio has a diverse tourism product
• Erie Shore
• Amish Country
• Cities
• Theme parks
• Cultural/historical attractions
• Wilderness
• And more
• Its an easy drive from major out-of-state urban
  population centers
• Detroit, Buffalo, Indianapolis, Pittsburgh,
  Louisville
• But

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Positioning Ohio

• Ohios image is currently dominated by theme
  parks because they have the budget.
• This is great news for theme parks.
• But Ohios tourism industry represents much more
• Ohio needs to be more than kids and theme parks
  to represent the states diversity.
• There is a need to reposition Ohio as a fun and
  exciting place offering a great variety of
  attractions that are enjoyable for people of all
  ages.

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Ohios Edge Over Competition
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Conclusions
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Problem Areas Revisited

• Flat image vs. competition
• Over-reliance on visits from friends/relatives
  vs. marketable trips
• High percentage of in-state travelers
• Declining market share within the region
• All of the above are common symptoms of lack of
  marketing muscle

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In Conclusion

• Tourism is big business in Ohio, generating over
  2,000 in spending for each resident of the
  state.
• Historically we have lagged behind our regional
  competitors in marketing muscle.
• As a result, the state has lost 28 of its
  regional market share over the last eight years.
• This currently translates into over 1 billion in
  foregone tourism revenue annually.

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The Opportunity

• Tourism advertising in Ohio has already proven
  itself with a 91 return on investment.
• This clearly demonstrates that tourism promotion
  is not a cost, but a net revenue generator.
• Our research clearly shows that a strong tourism
  campaign can
• Reverse Ohios loss of market share
• Enhance the image of the state
• Generate more trips and
• Deliver more revenue for Ohio taxpayers.

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The Challenge

• The Legislature has given us more
• We need to be even more accountable and to prove
  that the increased marketing efforts will pay
  back.

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Our Plan

• Implementing an accountable marketing plan
• Input and support of industry partners
• Comprehensive research program
• Metrics to prove success

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Questions?

• Amir Eylon
• [phone]
• aeylon_at_odod.state.oh.us
• Preview this research at
• www.ohiotourism.com/industry/research

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2002 Travel Year
October, 2003