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Budget Justification
Longwoods in the News

Funding boost could become permanent

    A major boost in funding for tourism promotion for the next few years provides the industry another test to further

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Budget Justification

Colorado Tourism Office

1986

The Colorado Tourism Board (CTB) hired Longwoods to conduct an image study as input into a new advertising campaign.  This study discovered that Colorado had an image problem and was positioned in the traveling public’s mind as “Mountains and More Mountains”.  The need was identified to move the state’s image to “Mountains and Much More”.  A new campaign was developed that incorporated this recommendation.

1986-92

Tracking research indicated the campaign was changing Colorado’s image, and shifting tourism business from a regional base to more of a national draw.

1993-97

CTB funding ($13 million annually) was provided by a small but broad tax of 20 cents on every hundred dollars of tourism-related expenditures.

In 1993, voters eliminated the tax in a referendum, thereby cutting the Board’s funding and leaving Colorado as the only state without a tourism funding source.

1997-98

In 1997, the CTB was reconstituted and given a one-time, $2.1 million appropriation.  Longwoods was commissioned to carry out visitor and economic impact research to demonstrate the importance of tourism and provide ammunition in the industry’s efforts to convince the State Legislature of the need for permanent funding for tourism marketing.

1999

Longwoods was hired by the Colorado Tourism Board and the Colorado Travel & Tourism Authority to develop a Strategic Marketing Plan that would serve as the foundation for a funding request to legislators. Based on Longwoods’ Travel USA® study of U.S. domestic travel behavior and Colorado Visitor research, the study showed that:

  • From 1993 to 1997, Colorado's share of domestic pleasure travel dropped 30%
  • Colorado dropped from first place among states in the summer resort category, 1993 to 17th, and has not made the top ten since
  • The state moved from a national fly-in destination to much more of a regional drive market
  • In 1997 alone, the 30% decline in market share cost Colorado residents approximately $2.4 billion in foregone tourism revenue, and $134 million in taxes

Despite the decline, tourism was still big business in Colorado, with $7.1 billion in spending in 1997, payroll of $1.5 billion, 112,000 jobs, and tax receipts of $390 million.
 
The Longwoods International Strategic Marketing Plan was endorsed by the industry in January, 1999, and distributed to key legislators. By March, lawmakers authorized $5 million of dedicated funding for tourism promotion and established a new tourism agency, the Colorado Tourism Board (CTO).  Longwoods continued to carry out annual Visitor research from 1999 to 2001.

2002-03

For the first time since 1992, Colorado launched a tourism advertising campaign with a significant budget.  Longwoods was hired to measure the Return on Investment of the campaign, which information would be used to help secure future funding.  For the 2003-04 fiscal year, total funding was increased to $12 million, in part due to the research results which showed a 13 to 1 return in taxes on the investment in advertising.