Final
Economic Development and Tourism in Colorado
ECONOMIC DEVELOPMENT
Votes:
Action Taken:
<none>
<none>
11:17 AM -- Colorado Office of Economic Development Panel on Economic Development and Tourism in Colorado, Mr. Pete Meersman, Colorado Tourism Board, Mr. Scott Campbell, Ms. Kim McNulty, and Mr. Brian Vogt, Office of Economic Development and International Trade
Mr. Brian Vogt, Director, Office of Economic Development and International Trade (OEDIT), began the presentation by discussing the announcements of 1,275 new jobs being created in the state through relocations and expansions by Aviation Technology Group, Intel, and Northrop Grumman. The new jobs are estimated to have a total payroll of $91 million and generate $2.5 million in income tax revenue to the state. Each of the new jobs were incentivized by the state, totaling $1.2 million in job creation incentives and $824,000 in job training grants. He discussed the importance of incentives.
Ms. Kim McNulty, Director, Office of Tourism, OEDIT, discussed the state's tourism programs that are used to market Colorado. Materials on OEDIT's tourism and marketing efforts were distributed to the committee (Attachment C). The tourism office receives about $5.7 million from the state each year. The office's main goal is to market the state to tourists. It does so through advertising, public relations, the production of a vacation guide, a toll free number, and a website. The office markets the state both domestically and internationally, targeting France, the United Kingdom, and Germany. She discussed Colorado's welcome centers, which receive about 1 million visitors each year, and the office's tourism industry outreach programs. The market research firm, Longwoods International, provides information on visitor profiles for Colorado and the state's return on its marketing investments.
Representative Borodkin questioned whether the tourism office should place tourism information kiosks at Denver International Airport (DIA).
11:32 AM
Mr. Scott Campbell, Heritage Tourism Program Manager, OEDIT, discussed the opportunities there are to market heritage tourism at DIA. He discussed the heritage tourism program which is funded by a $550,000 grant from the State Historical Fund. The goals of the program are to help market the state's heritage tourism sites and develop a heritage strategic plan. He discussed upcoming projects to promote Colorado's heritage tourism industry. Heritage tourism is a growing market; the market is growing two times faster than the regular tourism market. Research has shown that heritage travelers spend more money and stay longer. Although Colorado has invested in its heritage tourism sites, it is not experiencing growth in its heritage tourism market as other states. He stated that the focus of the Heritage Tourism Program is therefore to market Colorado's heritage tourism opportunities. A study by Longwoods International indicated that tourists are not aware of Colorado's heritage tourist sites. He stated, however, that heritage tourists are pleased with Colorado's heritage tourism sites after they visit. He commented that heritage tourism is a useful economic development tool, especially in rural communities.
Senator Bacon discussed the importance of heritage tourism in Trinidad and its strong efforts to develop the industry. Representative Lindstrom discussed restoration projects in Lake County and their economic development benefits. Representative Massey discussed competition among Colorado's regions for scarce tourism dollars. Mr. Campbell discussed the need for regional cooperation efforts and discussed examples of current efforts. Representative Lindstrom questioned how OEDIT markets its collaboration efforts. Mr. Vogt discussed the development of regional long-term strategic plans to build collaborations among communities. Mr. Pete Meersman, Colorado Restaurant Association and the Colorado Tourism Office Board, discussed ways to promote the culinary tourism market.
11:48 AM
Mr. Meersman discussed the economic impact of tourism in Colorado. He stated that 200,000 people work in the tourism industry in Colorado. He discussed the existence of tourism ambassadors throughout the state that help promote tourism. A map showing the number of tourist ambassadors throughout the state was distributed to the committee (Attachment D). Travelers in Colorado spent $7.3 billion in 2004. He discussed the impact of tourism promotion. The 2004 state advertising campaign influenced 5.2 million visitors who spent $1.4 billion. Every $1 of state money spent on tourism marketing generates $18.10 in state and local tax dollars and $292 in tourism spending. Colorado is the 5th most desired vacation state, 23rd in market share, and 35th in tourism funding. The Tourism Board is trying to increase the state's market share. He stated that the state should spend $15 to $20 million annually on tourism promotion. Representative Borodkin discussed how ambassadors could work with state legislators to promote tourism in the state.
Representative Lindstrom questioned how he can stay informed about preservation projects in his district. The committee discussed the need for more communication about programs and projects that are occurring. Ms. McNulty discussed the revenue sources of the tourism office's budget; besides the General Fund, the heritage tourism grant is the only other revenue source. Representative Lindstrom commented on the great job of the tourism office. He stated that he believed that the tourism office should be a nonprofit organization because it could generate more money for funding.
Mr. Vogt stated that many people do not understand how marketing generates money and discussed the need for the state to look at dynamic modeling and how it can show a return on investment. He also mentioned that the money for incentives that were used for the four businesses that have recently announced expansions in Colorado came from money received by the federal government.
Representative Borodkin discussed the need to continue the conversations on how to better promote the state and economic development.
12:04 PM -- Lunch Break