2002 Governors Conference on Tourism

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2002 Governors Conference on Tourism Recreation

• April 19, 2002

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Prosperity is Bypassing Montana
0
5
Per Capita Income
10
15
20
25
Montanas Rank in US
30
35
40
45
50
1953
1963
1973
1993
1983
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Average Wages --A Ten Year Comparison
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How Do We Reverse the Trend?
Our Framework for Economic Development Provides
the Structure
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Provide World-class Training

• Focus on needs of businesses in Montana
• Conduct labor skills study focusing on primary
  sector needs for the next 5-10 yrs
• Develop uniform program accountability measures
  for a myriad of existing workforce training
  programs
• Improve and align training delivered through 2 yr
  College system
• Improve alternative and/or distance learning
  programs

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Improve Support for Businesses

• Focus first on existing businesses in Montana
• Improve regulatory climate
• Focus on measurement
• Wendy Keating (DLI) and Scott Darkenwald (DOAd)
  are leading the effort
• Improve delivery of business assistance
• Mark Simonich (DOC) is leading the effort

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Tax Policy

• Tax system must be stable and fair
• Current system creates disincentive to invest
• High stated marginal income tax discourages
  people from moving to or remaining in the state

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Improve Access to Capital

• Low density/lack of major population center
  reduces capital availability
• Access to capital task force formed
• Education
• Need to direct funds through private sector
• Business assistance and management are critical
• Economic viability is most important factor

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Target State Resources on Business Clusters

• Clusters are geographically close groups of
  interconnected companies and associated
  institutions in a particular field, linked by
  common technologies and skills.

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Cluster Based Economic Development
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States Role in Cluster Development

• Invest in the foundations of science and
  technology
• Sponsor state programs that encourage cluster
  development
• Focus business recruitment around strong clusters
• Create regional dimension to state economic
  development strategies
• Improve information systems to regularly collect
  data and measure progress

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Market Montana to Businesses

• Phase 1 (Now) Build infrastructure/focus on
  existing businesses
• Support current deal-flow
• Phase 2 (April Oct) Build Marketing
  Infrastructure
• Complete cluster study to target critical high
  impact industries
• Web site improvements
• Prospect handling and performance tracking
• Communication
• CoreNet Global trade show (site selectors)
• Phase 3 (Oct - ) Targeted Recruiting
• Improve local recruiting capacity/coordination
• Benchmark Montana to others attracting similar
  industry
• Recruit to support clusters
• Target reasonable geographic locations

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Tourism Dramatically Affects Our Ability to Make
Progress

• Almost 10 of Montanas Economy
• Brings in Outside Capital
• Exposes Millions to Montana
• Tourism Marketing is the Face of Montana to Most
• Quality of Life

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What We Learn from the Tourism Industry

• Regional Cooperation
• Strategic Planning Process
• Public / Private Partnership
• Marketing Plan and Accountability

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2002 Governors Conference on Tourism Recreation

• April 19, 2002