Malloy Launches Tourism Campaign
by Christine Stuart | Jun 13, 2011 5:00am
(14) Comments | Commenting has expired
Posted to: Town News, State Capitol
(Updated at 12:00 p.m.) Gov. Dannel P. Malloy made good on a campaign promise today to boost Connecticut’s tourism industry by announcing he was able to raise close to $800,000 from private companies in order to jump start its marketing efforts.
Unwilling to let the summer slip away from him, Malloy sent out fundraising letters in April to 42 companies to ask for their financial support in putting together a $2.6 million marketing campaign to lure tourists to the state.
Malloy and the General Assembly approved $15 million in funding for statewide marketing efforts in the state budget, but that money won’t be available until July 1, the start of the new fiscal year. The budget is also pending ratification of the $1.6 billion state employee concession package.
Not known for his patience, Malloy and Kip Bergstrom, director of Culture and Tourism, set out to raise $1 million privately through letters it sent to a variety of different companies, including the state’s two casinos, two utility companies, and dozens of hotels and entertainment venues that would benefit from this type of marketing.
In the letter, Malloy explains why he has set forth to raise the money.
“Because those funds will not be available until July 1, we have found a way to reconfigure $1.6 million of state funds in this year’s budget, which if leveraged with $1 million of private funds, will enable us to mount an effective spring/summer campaign targeted at the peak summer leisure travel season,“ Malloy wrote in an April 29 letter to potential donors. “I am writing to ask you to make a contribution of $??,000.00 to this effort.”
Bergstrom said the general business donors that don’t necessarily receive a direct boost from tourism, such as Connecticut Light & Power or United Illuminating, will receive recognition.
“It’s a less tangible benefit,” said Bergstrom.
Malloy asked for various amounts from each of the organizations and the campaign, just $200,000 short of its goal, is still ongoing, according to Bergstrom.
“It was an incredible mistake to cut the tourism marketing budget to $1,” Bergstrom said Sunday. “It caused a reduction in tourism, revenues, and taxes that the state will have to recover from.”
Malloy himself said back in March that it was a mistake not to invest in tourism marketing.
“We made a gigantic mistake in my opinion of doing what we’ve been doing over the past couple of years in cutting back, cutting back, and cutting back with respect to culture and tourism,” Malloy said. “It’s going to take us a few years to undo that damage unfortunately.”
Bergstrom said Sunday it will take time for the industry to recover from that decision. The decision was made on former Gov. M. Jodi Rell’s watch in an effort to cut the budget.
When Bergstrom was appointed back in March Malloy said he would be in charge of pulling together some strategic partners, such as the casinos and hoteliers, who will help contribute money toward the production of a Connecticut television advertisement that he hopes will go up on the air before July 1.
Stephen M. Coan, president and CEO of the Sea Research Foundation in Mystic, called the pre-season tourism funding a “game-changer.”
“The state has not marketed pre-season for at least five years and it’s critically important to get the word out early and to keep delivering messages to people encouraging them to come to Connecticut,” he said.
Coan said that tourism attendance in Mystic has been down about 10 percent since tourism funding was cut. He noted that it may take time, years perhaps, before the state’s tourism industry recovers, but he said if attendance rises 5 percent this year it would be a step in the right direction.
Asked if he would appear in the ads, like former Gov. John G. Rowland and his wife Patty did, Malloy said appearing in the ads was not appealing to him.
Overall, the tourism and cultural heritage industry brings $14 billion in economic activity to Connecticut annually and about $9.4 billion in personal income, according industry experts. The industry brings in about $1.7 billion in state and local revenue, and it employs about 110,000 people—about 6.5 percent of our workforce.
And like other industries the tourism industry has been plagued by the recession.
A January 2010 report from the nonpartisan Office of Legislative Research examined statistics for the state’s traveler welcome center and major attraction visitors, air passengers, casino slot machine revenue, hotel occupancy, traffic and leisure and hospitality employment.
The report showed downward trends in almost all of those areas, but it also predicted a turnaround by 2011. According to the report, demand for room occupancy is forecasted to grow 3. 2 percent during 2011, but is not projected to return to 2007 levels in the foreseeable future.
The report also found that slot machine payments have steadily decreased since 2007 and are not expected to recover through the end of 2011.
The campaign Malloy announced today at the Connecticut Science Center will include a television and radio advertisements, upgrades to the CTVisit.com web site, and several glossy publications which will be distributed in Connecticut and New York newspapers.
Hugh McQuaid contributed to this story
Tags: tourism, culture, campaign, Bergstrom, Malloy
(14) Comments
posted by: Steven Jones | June 13, 2011 6:28am
The removal of CT from a regional tourism map and a $! budget for tourism was a laughingstock move that has been quickly resolved.
Malloy is certainly a CT history buff and will not hesitate to engage in a good conversation about colonial or civil war CT.
CT can become a place that people stop in and enjoy, and not just a place they drive through to get to RI or Boston or Springfield.
posted by: Not that Michael Brown | June 13, 2011 7:28am
Families are not going to be drawn to CT for vacation, except maybe for the beaches. As a businessperson, I visit a number of minor cities and states in the country (heading for Duluth right now). Everywhere I go I search the web for unique places to eat and drink.
posted by: hawkeye | June 13, 2011 10:03am
JonessAC12: Your comment appears to be only wishful thinking in behalf of Gov. Dannel Patrick Malloy. I agree with DrHunterSThompson—with his suggestions on how to encourage people to be beneficial tourists—passing through the state -
to stop in our state on the way by and spend a few nights here—AND REALISTICALLY GAIN SOME TOURIST DOLLARS.
However, unfortunately, every tax Malloy will not part with—discourages tourists from stopping and spending tourist money in the over-taxed State of Connecticut. Our state cannot be tourist friendly, only though a tourism budget, as the heavy taxation here discourage the tourist from using it as a vacation stop.
Our nationally leading state taxes—makes Connecticut a third-rate-state—for all business—including TOURISM.
posted by: Really? | June 13, 2011 11:55am
Good story Christine…good facts and figures. The Governor unfortunately has been talking out of both sides of his mouth. Two weeks ago his agencies proposed closing down many of our highway rest stops which can serve as portals for information on tourism and travel in the state. Today he’s gung ho on tourism and travel in our state. I’m dizzy but I’m glad he’s come over from the dark side, left the rest stops open and wants to do more. We have special niche areas (antiques, B&B’s, state parks with waterfalls, dinosaur tracks, etc.)in the state that with the right marketing can attract visitors. I also like the government-private partnership going on here.
posted by: Noteworthy | June 13, 2011 1:13pm
This is hardly a campaign promise. It was stupid to ever cut marketing dollars. Putting it back in was a no-brainer. I would prefer Malloy fulfill the rest of his campaign promises - the real ones - he’ll tax us last; he’ll get $2 billion in real money from the unions; and how about no smoke and mirrors? Or GAAP? lol. Big deal.
posted by: Matt W. | June 13, 2011 3:38pm
This is a good idea b/c the prospects for increased travel and tourism are positive. Let’s be smart about spending $. If the prospects were poor (as they were in 09 & 10) then putting $16M into advertising is probably a poor investment. I think that despite our best efforts, we probably did the right thing.
posted by: gutbomb86 | June 13, 2011 5:47pm
@hawkeye - WOW, this is goofy:
>However, unfortunately, every tax Malloy will not part with—discourages tourists from stopping and spending tourist money in the over-taxed State of Connecticut. Our state cannot be tourist friendly, only though a tourism budget, as the heavy taxation here discourage the tourist from using it as a vacation stop.
Never in my life have I once considered a state’s tax policies when choosing a vacation destination. Never once. Don’t know a single person who has done so. It’s like saying I’d like to go to California but I’m not going to do it because I have to pay $2.50 to cross the Tappanzee Bridge. Ridiculous. I’ve read some whoppers and real nonsense in the comments here in the past, but this one takes the cake.
It’s almost like you’ve set a quota for yourself with respect to the number of anti-Malloy comments you have to post each day, and you’ve run out of ideas.
posted by: Steven Jones | June 13, 2011 6:53pm
Actually hawkeye my post is on behalf of all residents of CT who actually want economic recovery and a successful state.
As for your comment towards gaining revenue from HST. Those are all nickle and dime ideas that won’t solve a deficit. In fact, taxing hotels and meals in restaurants will keep away from some places and choose to eat in others, creating winners and losers. Doesn’t sound like fair taxation to me, does it?
You need to bring more ideas to the table aside 6 that HST mentioned to solve a deficit and simultaneously increase tourism.
posted by: hawkeye | June 13, 2011 7:01pm
gutbomb86: As a Gov. Malloy supporter, you conveniently side-step increased, sky-high taxes as a deterent to promote tourism—in this state. No, our nationally known highest taxes, won’t stop tourists from passing through the state. However, once here, tourists will quickly note our higher prices due to our high taxes, and will keep on going to another state.
Don’t sugar-coat it, high taxes raise all consumer prices—and our incoming travelers will quickly note the higher costs here—which will not promote tourism in Connecticut.
It’s unfortunate that you find the truth to be amusing to you, gutbomb.
posted by: hawkeye | June 13, 2011 8:46pm
jonesAC12: I already said taxing hotels and restaurant won’t help tourism.
What are your ideas on solving the state deficit and simultaneously increase tourism? I stand with my comment that our high taxes is a detriment to state tourism. Malloy can’t expect to have high taxes, and promote commerce, at the same time. It’s counter-productive, and simply doesn’t work. Perhaps you are seeing something else in your crystal ball, Jonessey?
posted by: Steven Jones | June 13, 2011 11:35pm
Hawkeye, you kind of just contradicted yourself, stating you don’t support new taxes, but then agree with HST’s proposal, which increases taxes on services. I am glad you clarified you do not support his proposals.
As for my thoughts on working on both: Cut spending (which has been done by a number of 800 million) in areas that seem wasteful, and divert some spending cuts to the tourism budget. From there it is up to the creative minds at the State and our business leaders to partner together in making CT a great state to tour in any season.
No crystal ball needed for this, it is just basic facts.
posted by: Steven Jones | June 13, 2011 11:43pm
And as a side not hawkeye, he got a budget passed that does increase taxes (which some will call ‘anti-business’) as well as the fast-five initiative, which provides incentives for new businesses with tax cuts to open shop in CT.
So it has been literally possible through the legislative process to pass new/increased taxes and promote spending to aid businesses. There is no expecting, it actually happened. As for you comment that it does not work, I’d appreciate some hard stats or details. Or is that also a crystal ball you’re looking into, sharpeye (sorry, meant hawkeye)?
posted by: DrHunterSThompson | June 13, 2011 6:06am
Some ways to capture $$ from out-of-staters and save $$ for residents.
1) we have an amazing amount of out of state traffic: eliminate the sales tax, totally. replace it with a tax on businesses - one they can afford easily due to their new found profits, we will also make $$ because businesses wil hire. make CT a shopping mecca.
2) Tolls: get them up before July 4.
3) legalize pot - package it and sell it in package stores, tax it greatly.
4) alcohol sales: reduce the tax, expand the hours, open sundays.
5) increase the hotel taxes.
6) tax meals in resturants.
we have an enormous amount of people either passing through without stopping or stopping only at the casinos. we need to make them pay to pass through, and we need to encourage them to stop on the way by and spend a few nights.