THE POWER OF WISCONSIN TOURISM

2016 Key Messages for Wisconsin’s Tourism Industry

How did Wisconsin’s tourism economy fare in 2015?

  • Tourism activity in the state was up nearly $1 billion, from $18.5 billion in 2014 to $19.3billion in 2015 according to research conducted by Tourism Economics and Longwoods International. This 4.4% growth was driven by increases in spending on lodging, lower gas prices and refined marketing strategies.
  • The past five years have been outstanding for Wisconsin’s tourism industry. Since 2010, the tourism economy is up by $4.5 billion, a 30% increase.
  • Direct visitor spending was $11.9 billion last year, up 4.4% from $11.4 billion in 2014, and up 32% from $9 billion in 2010.

Visitor volume and spending growth.

  • With continued economic growth and declining gas prices, visitor volumes topped 105.2 million visits, a growth of nearly 3 million from the previous year. The five year increase in visitor volumes is 12.7 million from 92.5 million in 2010.
  • Last year’s growth in visitor spending translated into an increase in $57,000 in spending by travelers every hour.
  • Last year’s decline in gas prices of 25% resulted in lower transportation costs for visitors who in turn spent more money on lodging, retail, recreation and restaurants.
  • Lodging, which makes up over 26% of all visitor spending, showed the strongest growth of 7.3%.
  • Food and beverage is the second highest expenditures by visitors after lodging. Visitors spent over $3 billion on food and beverage, an increase of 4.2%.
  • Retail shopping also had a good year with a rebound of 5.2% compared to 2.4% growth in 2014.

How does tourism impact jobs and tax revenue?

  • Traveler spending is a significant source of employment and taxes. Largely comprised of small businesses, travel and hospitality jobs can’t be outsourced or exported.
  • Tourism supported 190,717 jobs in Wisconsin’s labor market in 2015. Since 2010, tourism activity in the state added 18,717 jobs to the economy, an 11% increase in employment opportunities for Wisconsin residents.
  • Personal income from jobs supported by tourism totaled $5.1 billion, up nearly 5% from 2014.
  • Visitors generated $1.5 billion in state and local revenue. Wisconsin taxpayers would need to pay $640 per household in order to maintain current government services.

How doestourism influence perceptions of Wisconsin?

  • Tourism creates a halo effect for Wisconsin by generating a positive impression of the state’s image, which is critical for economic development.
  • Longwoods International conducted research to measure how tourism advertising and visitation influences consumers’ perception of the state. Travelers who have visited Wisconsin in the past two years rate the state much higher in attributes such as a good place to live, start a business, attend college, or purchase a retirement home than those who have not visited the state.

What is the tourism outlook for 2016?

  • According to the U.S. Travel Association, more travelers will hit the road in 2016 if gas prices and unemployment rates remain low and consumer confidence continues to rise. The results of the summer travel season are a good indicator of how tourism and travel will fare in 2016.

What are some trends impacting the tourism industry?

  • Americans are leaving 429 million unused vacation days on the table every year, and with those days, $160 billion in economic opportunity is lost. Not only will employers have to pay out these liabilities in the long term when employees leave or retire, in the short term it affects employees’ health, performance, and productivity, all of which can undermine company success.
  • Lower gas prices mean more travelers are hitting the road for their vacation and traveling further, leadingstates like Wyoming, South Dakota and North Dakota to place advertising in the same markets as Wisconsin. This means that Wisconsin must focus its marketing efforts on core strengths and differentiation to stand out in this competitive environment.
  • Meetings and conventions, business and sports travel remain strong market segments for Wisconsin.

What does the Department’s marketing efforts look like for 2016?

  • The Department continues to base all of its marketing efforts on the brand of fun, the #1 travel motivator.
  • Among its Midwest competitors, Wisconsin ranks #1 in fun, family atmosphere, uniqueness, affordability and outdoor recreation according to Longwoods International, a leader in travel research.
  • The 2016 ad campaign takes the tourism brand of fun to a new level. Instead of using celebrities, the Department is making Wisconsin the star by showcasing the state’s core strengths and top travel motivators such as family vacations, scenic locations and iconic food experiences.
  • A new TV commercial, Neesvig’s truck wraps and other advertising channels pay homage to the Wisconsin supper club, a tradition and cultural icon throughout the state for nearly 100 years. The message of a second TV spot is pets are welcome with their families in Wisconsin.
  • A new “Real Fun” online video series features real visitors on vacation in Wisconsin.The videos have proved popular with the way they touch people’s hearts, inspiring travelers to create the same kind of experience.

How do we know the Department of Tourism’s marketing efforts are effective?

  • For every $1 the Department spent on its ad campaigns in 2015, $8 was returned to state and local governments in incremental tax revenue. This is the highest return on investment (ROI) since the Department began commissioning the study from Longwoods International in 2010. The ROI for the previous year’s campaign was 6:1.
  • All marketing efforts drive consumers to TravelWisconsin.com, which had a record-breaking 2015 with 7.3 million sessions on the website, an increase of 36% since 2014 and the biggest year-over-year increase in the history of the website.
  • Last year’s well-timed TV ad starring UW-Madison men’s basketball coach Bo Ryan debuted to positive response and received over 6 million impressions during the Big Ten and NCAA Championships. In addition, it was viewed online over 526,000 times, a record for any ad in the Department’s history.
  • The Department’s public relations, social media and marketing efforts have garnered 72 state, regional, national and international awards and recognitions since 2011.
  • Travel Wisconsin social media engagement continues grow with over 400,000 Facebook fans and 81,000 Twitter followers. Instagram is the fastest growing platform, and since its launch in late March 2015, has gainedover 13,000 followers. A combined PR and social initiative identified key Instagram influencers in the areas of travel, family, food, and lifestyle and who will visit Wisconsin to promote the state to their followers, much like a traditional travel writer.

Explain the research model used by Tourism Economics.

  • Tourism Economics uses an Input-Output (I-O) IMPLAN model that profiles an economy by measuring the relationships among industries and consumers.
  • It calculates three levels of impact – direct, indirect, and induced.
  • Direct Impact: Visitor’s expenditures on recreation, lodging, restaurants and attractions.
  • Indirect Impact: The flow of a visitor’s expenditures as it traced to food wholesalers and farmers, utilities, marketing, publishing, and so on.
  • Induced Impact: The benefits to the economy as tourism employees spend their wages in the local economy, generating additional jobs, taxes, and wages.

Why Longwoods International?

  • Longwoods International produces Return on Investment (ROI) research, measuring the effectiveness of tourism advertising campaigns to generate incremental increases in traveler spending.
  • Incremental tax revenue is generated by new visitors to Wisconsin who would not otherwise have come if they had not seen the state’s tourism advertising.
  • Longwoods International and Tourism Economics are both globally recognized leaders in travel research, with over 30 years of experience and hospitality clients that include Michigan, Ohio, Philadelphia, Canada, InterContinental Hotels to name just a few.

What are some data sources used by Tourism Economics?

  • Sources include Longwoods International, Bureau of Economics Analysis, Bureau of Labor Statistics, Wisconsin Department of Revenue, Smith Travel Research, US Census data, among others.

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