In an era when economic activity in most other places and most other sectors faltered, South Dakota's travel industry was busy ringing up all-time record sales and many new visitation records at popular tourist stops. Why?
Super-aggressive marketing by the South Dakota Office of Tourism, private businesses and tourism trade associations -- often working in partnership -- to lure vacationers to our home state. We did not cut back. We did not let up. And lo and behold, 2009 turned out to be a dynamite tourism year. Using the 2009 model, we are investing even more in marketing to make 2010 successful.
Here are 5 Good Reasons why the Legislature should not reduce Governor Rounds' proposed FY 2011 budget for the Office of Tourism.
1. Office of Tourism is self-funded by a dedicated tourism sales tax; it draws no appropriation from the General Fund.
2. In FY 2010, Office of Tourism relinquished $2 million to the General Fund, and re-charged its operating funds with extra self-imposed tourism taxes. A deal's a deal.
3. Overall retail sales taxes in South Dakota declined 6.2% last year; but tax collections were +8.6% in the tourism sector! Good news for the Treasury.
4. Two million dollars from the SD Office of Tourism are doubled by private sector matching money, creating $4 million in State-private partnerships to promote leisure travel to South Dakota.
5. There is an advertising maxim that we shouldn't curtail marketing during an economic downturn. Stay the course during bad times and we will increase our share-of-market at the expense of our competitors.
We are on a winning track. Please don't jeopardize that by "economizing" on South Dakota's marketing. Please don't trim South Dakota's Office of Tourism. Thank you!
Bill Honerkamp, President
Black Hills, Badlands & Lakes Association
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