2004 MACVB Annual Meeting
The
Increasing
Role Of
Tourism In
Economic
Development
June 2004
A special presentation
by
Greg Gilstrap
Preprint Publishing
Session Outline
Evolution of DMOs
 Tourism’s Evolution
With Economic
Development
 Case studies
 Q and A

DMO
Evolution
DMO Evolution
Early Days
Marketing
Future
Marketing
+
Management
The Difference
Marketing
Management
Focus
Selling
Competitive
Advantage
Core
Competency
Rowing
Steering
Development
Little Emphasis
Big Emphasis
Leadership
Industry
Community
Philosophy
“Sell what we
have”
“Package or
develop what we
need”
Orientation
Internal
External
“We do it all”
“We do what we
can do well”
Scope
Customers
Traditional tourism approach
This is our
product
To whom do
we sell
it and how?
Strategic tourism approach
This is our
target
customer
What product
development do
we need?
Product Development
Bricks and Mortar
Build new facilities
 Expand current facilities
 Change orientation of current
facilities, exhibits, etc.

Mental Mortar
Packaging
 Itineraries
 Niches
 Strategic
grouping

Applying Mental Mortar
Take a 3-day getaway and explore
the many magnificent miles of
Illinois.
Current Travel Package Themes
Seasonal
Golf
Winery
Heritage
Romance
Indulge
Summer
Family Fun
Great Outdoors
Theatres/Museums
By City?
By Region?
Destinations Must Compete
Outdated DMO Approach
Low
spending
potential
Medium
spending
potential
High
spending
potential
Destinations Must Compete
Progressive DMO Approach
High
spending
potential
Low
spending
potential
Medium
spending
potential
Implications for
ineffective marketers?
Tourism’s
Evolution
With
Economic
Development
Case Study
City of Sausalito
Marin County, California
Arizona Golf
50% of golf courses in
resort communities
 Catalyst for high-tech
movement

If Not for Visitor Spending
Magnificent Mile 10 million visits from Metro
Chicago residents annually.
Visitor Generated
Spending
50%
Source: GNMAA & DK Shifflet
Bozeman, Montana
Indirect & Induced Effects
Qualitative Approaches
Health care operation
Rural church
Insurance sales
Take a trip to Big Bend and
explore nearly 300,000 acres
of Chihuahuan Desert,
experience the "Titan" at Six
Flags Over Texas and enjoy
the Hill Country on
horseback. This and much
more is packed into twelve
weekend vacations
throughout Texas. So, get out
there and Rediscover Texas it's on us!
Role of Visitor Spending
Expands Resident’s
Amenity Base
Access to quality beaches
Cultural/heritage options
Retail and dining options
Entertainment options
Recreation options
Etc.
Accelerates All Forms of
Economic Development
Introduces decision makers
Creates quality of life amenities
Aids in attracting employees
Aids in attracting employers
Etc.
Countering Objections
Just low
paying
jobs?
Counter Arguments
1.
2.
Tourism is a
catalyst for
many forms of
economic
development
Traditional job
studies under
report tourism
wages
The Catalyst Role
“The tourism
objectives
materializing in this
process should be
viewed as an ideal
compliment (and
insurance policy) to
the general
economic
development goal
of creating higher
paying jobs.”
Lobbying Lawmakers
Senator Martin and Representative Jayne:
As the legislative session winds down, I would like to respectfully
encourage you to go to bat for full formula funding for the Arizona Office of
Tourism. It is my understanding that an amendment will likely be offered on
the floor of the House of Representatives to the general appropriation bill in
the next few days that will provide for the full formula funding ($2.6 million
additional funding or $11.6 million total AOT base funding).
Tourism is the straw that stirs this state's economic engine. There are
many of us who live in your district that may not appear initially to be
dependent upon the importation of tourism dollars. We are publishers,
architects, lawyers, accountants, insurance professionals, distributors of
food products, furniture sales people, turf management specialists,
transportation providers, etc. We may not fit the image that first comes
to mind when many people imagine what a tourism professional looks
like. Make no mistake, however, we are and we depend on the State of
Arizona for making sure high-spending visitors choose the Grand
Canyon State over more aggressive competing destinations.
Please don't hesitate to call me if you would like to discuss this most
important matter in greater detail. I appreciate you representing me, my
business and my Anthem neighborhood.
Kind regards,
Greg Gilstrap
Lobbying Lawmakers
Dear Friends:
…I’m sure you are aware of the research that
shows dollars spent on tourism give a direct
RETURN on the investment in immediate
increases in sales taxes, hotel taxes, etc., not
like some longer term investments the state
makes for economic development or
university expansions that take years for a
return to materialize. I would suggest that
during these difficult budget times you should
invest more in tourism today to save budget
problems this year, next year, and in the
future…
Respectfully,
John Hudak
Publisher/Editor-in-Chief
Madden Publishing Inc.
Case
Studies
The Elkhart County, IN CVB



A destination assessment identified
the need for the CVB to take a
leadership role in planning and
development.
The recommendations included: new
business development, event tourism
and gateway/signage enhancement
as well as becoming an active
participant in the planning activities
of the county, cities and towns.
The Board of Directors led the
expansion of the CVB mission to
include increased involvement in
development initiatives and
additional responsibilities in the
community.
The Elkhart County, IN CVB
Results of development emphasis
The CVB has been designated as the
project manager of a community wide
visioning process.
 The ECCVB took a leadership role in
influencing a small community within
the county to do a comprehensive
development plan.
 The CVB will be a partner with the City
of Elkhart in a planning process to
consider developing a restaurant
district, museum campus and cultural
arts initiative as a part of the
redevelopment of downtown.
 The new focus resulted in the CVB
adding an urban planner to its staff.

Downtown Redevelopment

$600 million downtown
mixed use development

$5 billion international
terminal expansion at DFW

Light rail system
Branding
Successes
 Brand and slogan launched
with regional placements
 55 to 60 partners using the
brand
 Partner usage extending
beyond tourism
 Front-line training
 Phase II planning – putting
people first
Lawrence, Kansas
2002 Governor Candidates
“I am firmly committed to investing in tourism.”
“Much of our permanent growth can be directly
attributed to a visit here first.”
“To attract corporations and encourage
development and growth of wealth-generating
companies we should pursue…protecting and
enhancing Arizona’s assets that produce a
desirable quality of life.”
“These areas are simply where our economy
derives its major activity right now.”
“Arizona is not too dependent on low-paying
jobs.”
Can you cover up your
other ear so Andrew
can’t hear what I’m
saying?
Q&A
2004 MACVB Annual Meeting
The
Increasing
Role Of
Tourism In
Economic
Development
June 2004
A special presentation
by
Greg Gilstrap
Preprint Publishing
“We feel our organization can
build strategic alliances to
provide the leadership and
vision in building a better
community for visitors and
residents while continuing our
goal of having tourism
recognized as being an
economic engine.”
- Diana Lawson
Executive Director