TOURISM

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TOURISM
Good for Montanans Good for Montana
Department of Commerce, Montana Promotion Division
2003
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Montana is Divided into SIX Tourism Regions

• TEN
• Convention and Visitor Bureaus (CVBs)

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Tourism Regions
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In 1988, the Year Montana first collected the 4
Bed Tax 4.8 million was Generated

• In 2002 that figure was over 12.2 million

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Bed Tax Collections(Calendar Years 1993-2002)
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1
6
4
5
4
3
6
5
7
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How is the Bed Tax

• Distributed

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Accommodations Projected Tax Revenue FY 2004

• Projected Lodging Tax Revenue 12,321,013
• Heritage Preservation Commission (400,000)
• (Virginia City)
• Department of Revenue 283,383
• (Collection costs reimbursement to general fund
  of tax paid by state employees)
• Available for Distribution 11,637,629

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Use of Funds(Determined by Montana Legislature)

• State Parks 6.5 756,446
• (Operations and Maintenance)
• University System 2.5 290,941
• (Tourism and Recreation Research)
• Historical Society 1 116,376
• (Historical Sites and Signage)
• Regions/CVBs Marketing 22.5 2,618,467
• Travel Montana Programs 67.5 7,855,400

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Travel MontanaProjected FY 2004 Budget

• Funds from Accommodations Tax 7,855,400
• Income from ad sales, co-ops, etc. 395,950
• LC Bicentennial Commission (200,000)
• Historical Society (LC Bicentennial)
  (100,000)
• Historical Society (Historical Interpretation)
  (196,857)
• Historical Society (Scriver Collection)
  (120,151)
• Montana Trade Program (200,000)
• Total Funds Available 7,054,342

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How is the 7.05 MillionDistributed AmongTravel
Montana Programs
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WHAT DO WE KNOW

• ABOUT OUR
• NONRESIDENT VISITORS?

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Montana NonresidentVisitor Facts

• 9.77 Million Nonresidents Visited Montana
• Primary Purpose of Visit
• 49 vacationers
• 22 visiting family friends
• 11 business travelers
• 9 passing through
• 9 shopping, conventions, other

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Nonresident Visitors(Millions)
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NONRESIDENT VISITORSBY MONTH
19.35
17.72
13.55
10.08
7.22
5.67
5.89
4.90
4.36
3.90
3.39
3.98
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Visitors Spent 1.8 Billion in Montana
These expenditures produced over 149 million in
state and local taxes
Where does the 1.8 billion travel industry money
go?

• 28 Food 503 million
• 21 Retail Sales 379 million
• 14 Lodging 249 million
• 4 Outfitters/Guides 65 million
• 6 Auto Rental Repairs 115 million
• 22 Gas 402 million (which generates
• nearly 75 million in state gas taxes)
• 5 Other Purchases/
• Transportation 87 million

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Tourism Means Jobs for Montanans

• Tourism generated close to 33,500 direct/indirect
  jobs
• These Jobs Generated 580 million in personal
  income

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Between 1993 and 2002

• Montana visitor expenditures grew from 1.54
  billion to 1.80 billion
• Nonresident visitation grew 14 from 8.38
  million travelers to 9.77 million travelers

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Winter Visitor Facts

• The typical winter visitor group (2.4 people)
  pumps 111 per day into the state's economy
  stays 3.1 nights with a household income of
  60,000 to 80,000.
• Visitors were most likely to be from North
  Dakota, Wyoming, Washington and Alberta, Canada.
  Ninety-five percent had been to Montana before
  and 96 planned to visit again in the next two
  years.
• Yellowstone National Park was visited by 31 of
  all vacationers, while the Flathead Lake Area,
  had 23 of the vacationers.

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Winter (Continued)

• Visitors stayed overnight in Billings (32) more
  often than any other community in the state.
• For pre-trip planning, visitors felt that private
  businesses (36) and the Internet (35) provided
  the most useful information.
• Shopping was the activity participated in the
  most (41), followed by downhill skiing and
  gambling (12)
• Winter visitation to Yellowstone National Park
  has held steady at (13) over the years, but
  visitation to Glacier National Park has increased
  from (2) in 1993 to (9) in 2001.

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Spring Visitor Facts

• Typical nonresident spring visitor group (1.97
  people) spent 95.98 a day, stayed 3.04 nights.
• Visitors were most likely to be from Washington,
  Idaho, North Dakota and Wisconsin.
• Vacationers visited Yellowstone National Park
  (47), Glacier National Park (47), Little
  Bighorn Battlefield (34 ) and the Flathead Lake
  area (28 )

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Spring (Continued)

• Glacier Country Tourism Region accommodated more
  overnighters (29) than any other travel region,
  but visitors stayed overnight in Billings (17)
  more than any other community in the state.

• Camping was the most popular activity (48),
  followed by visiting historic sites (45), (33)
  hiking and (31) shopping.

• For those who used available pre-trip planning
  sources, (39) the Internet and (23) auto clubs
  were the most useful. The most useful information
  used while in the state mostly came from service
  people (30) and highway signs (28 ).

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Summer Visitor Facts

• Typical nonresident summer visitor group (2.5
  People) spent 109.51 a day and stayed 4.2
  nights.
• Top three expenditures were gasoline, retail and
  restaurant/bar.
• Visitors from Washington (12) and California
  (10) represented a greater percentage than any
  other states. The border states of Idaho, North
  Dakota and Wyoming add up to 14 of nonresident
  visitors. Canada and Overseas (3) made up 11
  of nonresident visitors.
• Seventy-six percent of all summer visitors were
  repeat guests.
• Vacationers visited watched wildlife (50), day
  hiked (46), shopped (45), visited museums
  (25), hired an outfitter or guide (9).

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Summer (Continued)

• Top Montana attractions Mountain/forests,
  Yellowstone Glacier National Parks,
  Rivers/lakes, and open space/uncrowded areas.
• Visitors stayed overnight in Billings (9),
  Missoula West Yellowstone (7), Bozeman (6),
  and Gardiner Great Falls (4).
• For those who used available pre-trip planning
  sources, (43) used the Internet and (38) said
  it was their most useful source of information.

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Fall Visitor Facts

• Vacationers to Montana comprise 29 of Montanas
  fall visitors. This group stayed 4.98 nights.
  They were attracted to Montanas mountains and
  forests, open space and hunting followed by
  wildlife and Yellowstone National Park.
• Fifteen percent of these vacationers hired an
  outfitter or guide.
• Eighty-four percent of fall vacationers have been
  to Montana previously. These visitors came from
  Washington, California, North Dakota, Minnesota,
  Oregon, Idaho and Alberta.
• Visitors passing through comprise 34 of all fall
  visitors and stay 1.47 nights.

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Fall (Continued)

• Fall Visitors visiting friends and relatives
  (VFR) comprise 23 of the states visitors. They
  stayed 6.5 nights. VFR visitors shop more than
  any other activity followed by day hiking,
  wildlife watching and visiting museums.
• VFR visitors came from Washington, Idaho, Oregon,
  North Dakota, and Wyoming.
• Fall Visitors are repeat visitors (89) and 94
  said they will return in the next two years.
• Most fall visitors Do not use any information
  sources to plan their visit (57). However the
  Internet was still the most used source.

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So How Does Travel Montana Attract Visitors ?

• Consumer Marketing/Advertising
• The Internet
• Publications
• Publicity
• International/Group Marketing
• 1-800-VISIT-MT

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Travel Montanas Advertising Budget is 2.6
million

• When Compared to other State Tourism Budgets
  Montana ranks 26th

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Print Ads(Sample list of 2003 Warm Season
Publications)

• Smithsonian
• National Geo Adventure
• Ladies Home Journal
• Trailer Life
• American Heritage
• Sunset
• Family Circle
• Backpacker
• Bridal Guide
• AAA Tour Book

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Television Spots

• (National Campaigns)
• Rejuvenate Yourself Spot- General Consumer Ad -
  New in 2003
• Lewis and Clark Spot
• Ski Television General Consumer Ad
• (In State Campaigns)
• In Your Backyard Campaign
• (Invite Montanans to vacation at home)
• Governors Invite-A-Friend Campaign

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Travel Montana Launched Its First WebsiteIn
1994VISITMT.COM
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Travel Montana Websites (28)
Sponsored
Hosted

• visitmt.com
• lewisandclark.state.mt.us
• wintermt.com/skimt.com
• montanakids.com
• montanameetings.com
• montanafilm.com
• indiannations.visitmt.com
• travelmontana.org (Intranet)
• montanagroups.com
• wildlife.visitmt.com
• montanainfo.org
• Co-op Sites (sledtherockies.org, fourparks.com,
  nwlewisclark.com)

• billingscvb.visitmt.com
• missoulameetings.visitmt.com
• yellowstone.visitmt.com
• russell.visitmt.com
• circle.visitmt.com
• bozemancvb.visitmt.com
• missouririver.visitmt.com
• glacier.visitmt.com
• goldwest.visitmt.com
• custer.visitmt.com
• greatfallscvb.visitmt.com
• helenacvb.visitmt.com
• westyellowstone.visitmt.com
• bigsky.visitmt.com

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Travel Montanas Websites Hosted 3.85 Million
Visitors in 2002

• This is a 42 increase
• from 2001

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VISITMT.COM Growth from 1997-2002
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Recent Accomplishments

• Visitmt.com turned Web visitors into more than
  18,000 trips to the state in 2001 according to a
  recent report.
• These visitors spent over 39 million
• For each 1 spent on marketing, 28 was returned
  to the state
• 10 of the respondents stated they were directly
  influenced by the website to visit the state
• Half of the 701 surveyed selected Montana as
  their primary vacation destination
• In 2002, Georgia Tech Universitys Tourism and
  Regional Assistance Centers (TRACS) presented the
  Montana Department of Commerces Travel Montana
  web program with a Best Practices in Tourism
  award for its excellence in web marketing.

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Travel Montana PublicationsMontana produces and
distributes over1.5 million pieces of literature
each year

• Travel Planner
• Vacation Guide
• Winter Guide
• Calendar of Events
• Group Tours Planning Guide

• Meeting Planners Guide
• Lewis and Clark Brochure
• Indian Nations Brochure
• Kids Brochure

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Travel Montana Publications
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Publicity/Photography

• Host Familiarization/Media Tours
• Assist Travel Related Television and Broadcast
  Productions
• Distribute Video News Releases
• (Distributed to regional and national television
  news stations)
• Provide Research Assistance to Travel Writers
• Distribute Press Releases/Travel Stories to Media
• Produce Monthly Travel Montana Update Newsletter
• Produce Quarterly Untold Story Leads to Media
• Maintain Stock Photo Library for use by Media
• Provide Photography Services to Media

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International Marketing3 of Montanas Visitors
are from Overseas

• Montana markets to Europe with the states of
  Idaho, South Dakota and Wyoming with a company
  called Rocky Mountain International, based in
  Cheyenne, WY.
•  
• RMI coordinates the marketing activities and has
  established offices in our key markets of
  Germany, the United Kingdom, Belgium, France, the
  Netherlands, and Italy.
•   In the Pacific Rim, Travel Montana works with
  the Dept. of Commerce Trade Offices in Taipei,
  Taiwan and Kumamoto, Japan on tourism marketing
  related projects.

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Group Travel

• The average daily expenditure per person
  traveling with a group is 192 as opposed to an
  independent traveler who spends 187. (NTA
  packaged travel study 2000)
• The program conducts fam tours for group tour
  operators.
• Staff attend two national conventions to promote
  Montana as a destination.
• NTA, National Tour Association, Host Montana
  Night dinner
• ABA, American Bus Association
• Produce Group Tour Planning Guide
• Provide itinerary counseling to operators

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Meetings Conventions

• The national average daily expenditure of a
  convention delegate is 248.
• Encourage attendees at conventions out of state
  to consider bringing it to Montana.
• Provide a letter of invitation from the governor
  and travel packets to the board of directors or
  decision making group.
• Provide a letter of invitation from the governor
  along with travel packets to convention
  registrants to encourage attendance and extended
  stays.
• Attend several trade shows promoting meetings in
  Montana.
• Provide a Meeting Planners Guide and Invite a
  Convention Kit.

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Montana Film Office

• Primary Role is to bring Productions into Montana
  for the Economic Benefit of the State
• Produces the Montana Production Guide with
  Listings of 275 Crew Members and over 700 Montana
  Businesses
• Maintains montanafilm.com as a Marketing and
  Fulfillment tool.

• Responsible to ensure Montana is film friendly
• Find locations that fit
• scripts
• Act as liaison throughout
• production
• Cut through red tape

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Direct Economic Benefitsof Film Production

• Money spent on wages, products, services
• Circulates new money
• Buying power is 3½ times actual amount
• spent
• Productions help create retain jobs
• Comparable to a medium size business
• generating revenue in months, not years
• 6.8 Million Dollars of Direct Economic Impact in
  2002

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Indirect Benefits of Film Production in Montana

• Exposure to worldwide audiences
• Increased tourism

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1-800-VISIT-MTCall Center in Missoula
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Bed Tax DollarsHelp Fund A Number of State
Programs and Cultural Sites

• Lewis and Clark Bicentennial Commission
• Capitol Tours
• Virginia City/Nevada City
•  State parks
• Montana Historical Society
• Montana Trade Program which helps Montana
  businesses especially Agriculture

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Travel Montanas Tourism Development Program

• Community Tourism Assessment Program
• (CTAP)
• Tourism Infrastructure Investment Program
• (TIIP)
• Special Event Grant Program
• (SEGP)

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CTAP

• Since 1991, CTAP has assisted 29 Montana
  communities, assess their tourism potential.
  CTAP Grants have invested 376,000 in tourism
  bed tax funds into tourism-related projects in
  the CTAP communities.

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CTAP

• Russell
• Choteau
• Fort Belknap Tribes
• Havre
• Lewistown
• Pondera County
• White Sulphur Springs

• Glacier
• Hamilton
• Kalispell
• Libby
• Browning/Cut Bank
• Eureka
• Sanders County
• St. Ignatius

• Missouri River
• Fort Peck Tribes
• Glasgow
• Malta/Phillips Co.

• Custer
• Broadus
• Glendive
• Hardin
• Laurel
• Miles City
• North. Cheyenne Tribe

• Gold West
• Anaconda
• Deer Lodge
• Dillon
• Whitehall

• Yellowstone
• Livingston
• Red Lodge
• Three Forks

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TIIP

• Since 1995 TIIP Grants have provided more than
  1.66 million in bed tax funds for 35 projects
  in 26 Montana Communities. This investment has
  helped complete 21 million worth of Montana
  tourism projects.

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TIIP Funds Glacier Country

• Conrad Mansion (Kalispell)
• Daly Mansion (Hamilton)
• Central School Museum (Kalispell)
• Miracle of America Museum, Inc (Polson)
• Historic Savenac Nursery (Haugan)
• Seeley/Swan Historical Museum and Visitors
  Center
• St. Mary Mission and Museum (Stevensville)

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TIIP FundsRussell Country

• Childrens Museum of Montana (Great Falls)
• Hill County H. Earl Clack Museum, Wahkpa Chugn
• Archeological Site (Havre)
• Blaine County Wildlife Museum (Chinook)
• Cascade County Historical Society (Great Falls)
• Reconstruction of Historic Fort Benton
• Charlie Russell Chew Choo Tour Train (Lewistown)
• Old Trail Museum (Choteau)
• Lewis Clark National Historic Trail
  Interpretive Center
• (Great Falls)

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TIIP FundsMissouri River Country

• Phillips County Historical Society (Malta)
• RYH Regional Event Center (Sidney)
• Fort Peck Theater
• Maltas Museum of the Future

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TIIP Funds Custer Country

• Huntley Project Museum of Irrigated Ag
• Makoshika Park Group Picnic Shelter (Glendive)
• Moss Mansion (Billings)
• Makoshika State Park Amphitheater (Glendive)
• Zoo Montana (Billings)
• Yellowstone Art Museum (Billings)
• Chief Plenty Coups House Restoration (Pryor)
• Pictograph State Park (Billings)

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TIIP FundsYellowstone Country

• Livingston Depot Foundation
• Peaks to Plains Museum (Red Lodge)

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TIIP FundsGold West Country

• World Museum of Mining (Butte)
• Rialto Community Theater (Deer Lodge)
• The Reid Building Museum Library
• (Twin Bridges)
• Old Montana Prison (Deer Lodge)
• MT Wildlife Rehab Center Nature Park
• (Helena)
• Hangmans Building (Virginia City)

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SEGP

• The Special Events Grant Program (SEGP) was
  developed in 2002 to create and sustain community
  economic development through the creation and/or
  enhancement of new annual, on-going events. Event
  categories include cultural and heritage events,
  sporting events, and attendance events. Grant
  funds are available for event marketing,
  equipment rental, insurance, performer fees,
  security and mailings. To date, the SEGP program
  has provided 151,000 in tourism bed tax funds
  to 19 events in 17 Montana communities.

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SEGP Funds Glacier Country

• The Countess Trail Ride, Daly Mansion,
• Hamilton
• Bitterroot Summer Music Festival,
• Hot Springs/Bitterroot Valley
• 360 Spring Car Mid-Season National
  Championship,
• Pablo

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SEGP FundsRussell Country

• Fort Belknap Arts Crafts Fair and Cultural
  Food and
• Dance Performance Festival, Fort Belknap
  Reservation
• 3on3 Nothing But Net Street-Ball Tournament,
  Havre
• Montana Winter Fair, Lewistown
• Grizzly Marathon, Choteau
• Fur Trade Symposium Opening of the Fur Trade,
• Fort Benton

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SEGP FundsMissouri River Country

• Mustang Stampede, Malta
• Milk River Gospel Jamboree, Malta
• Prairie Fest, Sheridan County/Plentywood

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SEGP Funds Custer Country

• Will James Birthday Celebration, Billings

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SEGP FundsYellowstone Country

• Sweet Grass Fest 2002, Big Timber
• Big Sky Soap Box Derby, Bozeman
• Take Two Film Weekend, Livingston
• Sustainability Fair, Livingston
• Yellowstone Festival of the Arts, West
  Yellowstone

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SEGP FundsGold West Country

• Big Sky Draft Horse Expo, Deer Lodge
• Montana Gaelic Cultural Society An Ri Ra,
  Butte

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Montanans Are Visitors Too!
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Travel and Recreation BehaviorThe Montana
Resident

• 76 of Montanans take pleasure trips in a year
• 44 of pleasure trips are day trips (20/trip)
• 29 are overnight in Montana trips (65/trip)
• 27 of pleasure trips are leaving MT (285/trip)
• 962 million on pleasure travel (9.5 of HHI)
• 707 million is leaving MT
• 255 million dropped in MT

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MT Resident Trip Activities
Day Trips

• Day Hike
• History/Culture
• Fishing
• Nature/Photo
• Sporting Event
• Special Event

Day Trips
Trips Out of MT

• History/Culture
• Day Hiking
• Nature Photo
• Special Event
• Fishing
• Sporting Event

• History/Culture
• Sporting Event
• Nature Photo
• Day Hike
• Special Event
• Boating

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Montana 2003 Predictions

• The nation expects more domestic travel and
  Montana can expect to benefit.
• The approaching Lewis and Clark Bicentennial
  Commemoration provides reason to expect more
  visitors.
• Americans expect to travel and Montana can be
  that special trip.
• Institute for Tourism and Recreation predicts 2
  growth
• ( Normal growth pattern for last 5 years)

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National Tourism Trends

• Mature Travelers (Empty Nesters, Boomers turn
  55)
• Over 50 80 of leisure travel, 75 of nations
  wealth
• Seek heritage, culture, education, soft
  adventure, amenities
• Family travel up
• Seek value, variety, kid/grandparent-friendly
• Heritage/cultural travel is largest segment
• More affluent, educated, seek learning/challenge
• 65 of U.S. travelers include heritage/culture on
  trip
• Seek authenticity, quality, integrity, amenities

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National Tourism Trends(continued)

• Rural tourism up small towns, rural festivals
• Combine business with cultural experience
• Shorter, more frequent trips, shorter planning
  time
• Women still do the family planning
• Safety, hygiene, creature comforts, shopping
• Seek One-Stop convenience packages
• Canadian visitation to US up 9 1998-2000
• Shopping is 1 activity overall

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Get involved in Montanas Tourism Industry

• Through your Tourism Region
• Get on Travel Montanas Update Newsletter
  Mailing List
• Attend Annual Governors Conference on Tourism
  and Recreation in Billings April 5-6, 2004
• Know your Legislators/Get Involved in Legislative
  Process

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Useful Resources

• Travel Montana
• [phone]
• www.travelmontana.state.mt.us
• Institute for Tourism Recreation Research
• [phone]
• www.forestry.umt.edu/itrr

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THANK YOU