High gas prices may keep tourists in state

George Zimmermann

This month, Michigan Retailer talks with George Zimmermann, who heads Travel Michigan.

Travel Michigan markets the state"s tourism industry and provides valuable visitor information services.

Position: Senior Vice President, Travel Michigan and Business Marketing, Michigan Economic Development Corporation (MEDC). Travel Michigan is Michigan’s official agency for the promotion of tourism.

Background: Zimmermann was the director of tourism for the State of Ohio from 1991 to 1998. He was named “State Tourism Director of the Year” by the National Council of State Tourism Directors in 1997, and has authored three travel-related books.

Before joining the MEDC, Zimmermann was the senior vice president for sales and marketing at CallTech Communications, LLC, an advanced-technology call center company headquartered in Columbus, Ohio, where clients included Universal Studios and Colonial Williamsburg. Zimmermann also spent more than a decade in front of the camera as a broadcast journalist and as a television producer and director in Texas, California and Ohio.

Q. Retailers may be concerned about the impact of higher gas prices on this year’s tourist season. What is Travel Michigan’s view of the issue?
A. Higher gas prices can be a psychological barrier to travel. But when you look at a map of Michigan, you realize that you can travel from one end of the state to the other on about two tanks of gas. While no one enjoys paying a higher price for gas, the extra couple of dollars should not hinder Michigan residents from exploring the state this summer.

Our message to Michigan residents is that rising gas prices are another reason to make your summer vacation a Michigan vacation rather than traveling out of state.

Tourism in Michigan is a $15 billion industry. Of those who travel in the state annually, nearly 60 percent of leisure-visitor spending in Michigan is by Michigan residents. This trend may increase with higher gas prices.

Q. Many of our members depend on travel and tourism for retail sales. What role does Travel Michigan play in supporting or complementing the retail industry?
A. Visitors—both in-state and out-of-state—spend $15 billion per year in Michigan, including spending at retailers. So, every success we have in increasing visitor spending means more spending with Michigan retailers all over the state.

Q. A year ago, Governor Jennifer Granholm announced the Michigan Tourism Initiative. Will there be another Travel Michigan Media Tour in 2004?
A. Governor Granholm spent six days last June showcasing Michigan attractions and encouraging Michigan residents to spend their summer vacations and vacation dollars in Michigan. This tour generated more than 200 print and TV stories with that message, media that would have cost more than $400,000 if purchased as advertising.

Given the success of the 2003 effort, the governor has agreed to do another one this year, this time focusing on Michigan’s Hidden Tourism Treasures, less-well-known attractions for travelers to experience.

Q. How will Travel Michigan promote Michigan travel and tourism this summer?
A. We will have coordinated in-state and out-of-sate campaigns this summer, featuring advertising, public relations and promotions in our key markets. Private-sector partners have contributed $700,000 to our paid advertising efforts. Our public relations program includes media blitzes in key out-of-state markets and the weekly “Travel Michigan” show on WJR, Detroit (Sundays at 7:00 p.m.)

Travel Michigan’s out-of-state advertising will run in Chicago, Indianapolis, Cleveland, South Bend, Toledo and Fort Wayne. For 2004, we have added Milwaukee as an advertising market for the first time.

Q. You also lead Michigan’s business marketing efforts. Part of that job is attracting new business to the state. What can be done to make the state more retail friendly?
A. Certainly there are specific issues of concern to retailers: sales tax fairness, sin tax levels and item pricing rules.

The best thing the MEDC can do to aid the retail industry is to spur growth in the state’s economy. The success of our efforts to expand industries such as life sciences, advanced manufacturing and homeland security will result in increased jobs and increased consumer spending, including retail.

Q. Tell us about the national recognition recently awarded to Travel Michigan’s web marketing. What is travel.michigan.org doing better than other state travel websites?
A. The Georgia Institute of Technology (Georgia Tech) Economic Development Institute has designated Travel Michigan’s web marketing initiatives as national “best practice.”

Information from the “best practice” award winners will be published as a resource for tourism and destination management promotion agencies.

To be recognized by Georgia Tech as one of the best in the industry in this vital area is both an honor and outside verification that we are setting the pace with our michigan.org e-marketing initiatives.

One of the reasons for the success of our web marketing program is our focus on e-marketing. All advertising, public relations, promotions and partnerships are designed to drive consumers to our website, michigan.org. That focus has resulted in dramatic increases in traffic to our web site.

Q. How many consumers use the Travel Michigan website for their travel plans, and how do specific businesses benefit from the site?
A. Inquiries in 2003 to the state’s official web site for tourism information rose 83.2 percent over web inquiries in 2002.

2004 site statistics continue to show increases. February 2004 web sessions showed an increase of 80 percent over February 2003.

Click-throughs—the number of times michigan.org web visitors clicked on a link and were transferred to a private-sector website—are a very good measure of effectiveness.

Total February click-throughs from michigan.org to Michigan travel industry web sites increased by 68 percent over February of last year. Total click-throughs for 2004 have increased 44 percent over 2003.

Q. Retailers may not be familiar with Travel Michigan’s industry-oriented website at www.travelmichigannews.org. What can retailers find on that site that would interest them?
A. The industry site is where retailers can find the latest news on Travel Michigan marketing initiatives, industry trends and other travel industry news. There are a variety of Travel Michigan programs which retailers can participate in, many at no charge.