ࡱ> z|{y !bjbjEE 42''pp4|$$B f!!6rrr"rrrƥb8:L0|, r  r!!r| p y:   Statement to the Joint Committee on Senate Commerce and House Economic Development & Tourism January 30, 2008 Submitted by Susan Henderson, Lawrence Convention & Visitors Bureau, Marketing Director Committee Chairs Brownlee, Jordan and Gordon, and members of the Senate Commerce Committee and House Economic Development & Tourism Committee, thank you for your consideration of this statement, submitted on behalf of the Lawrence Convention & Visitors Bureau. I am pleased to provide information about how I believe the Kansas Tourism Initiative (KTI) will impact Lawrence and the entire state of Kansas. The Kansas Tourism Initiative (KTI) is a broad-based, strategic plan designed to increase available funding for the tourism industry in Kansas and grow its ability to positively impact the economy of our state and our communities. In 2006, it is estimated that visitors to Kansas injected more than $7.3 billion dollars in direct and indirect spending into the states economy and generated $1.7 billion in federal, state, and local taxes. Few industries can demonstrate this kind of return on investment. The KTI presents an opportunity to leverage the states current funding stream for Travel and Tourism and match it with new dollars to grow the budget for tourism development and promotion in Kansas to a potential $15 million -- when the potential of the various funding sources is maximized. The structure of the proposed funding makes it incumbent upon every city and county across the state to work locally to grow their visitor industry, thus helping the states effort to be fully funded. This structure will serve to further the collaboration between Kansas communities in Kansas and Travel and Tourism, as we all work toward a common goal. In Lawrence, in 2006, it is estimated that visitors generated $46.1 million in direct spending in our community resulting in $922,626 in local sales tax revenue. While these numbers are small in comparison to the impact of the industry across the state as a whole, they are important for our local economy and we believe that the work of the Lawrence Convention & Visitors Bureau can be enhanced through the plan put forth in the KTI in the following ways. IMPROVED MARKETING REACH. Lawrences visitor industry is comprised largely of leisure travelers. We use a variety of marketing tools to reach this audience including direct mail, e-blast newsletters and paid advertising. Advertising to this market is particularly important because of the relationship it begins and the groundwork it lays for other types of communication. Reaching this audience with advertising is costly, but its effectiveness in generating visitor traffic can be measured. According to an Advertising Effectiveness Study conducted by Kansas State University professor Dr. Cristian Morosan, for every dollar spent on advertising Lawrence, $59.07 were returned to the community in 2006. That return is substantial and one that points to the importance of advertising our community as a visitor destination. Unfortunately, our ability to purchase advertising is limited both by our local budget and by a single communitys negotiating power. The Lawrence CVB relies heavily upon cooperative advertising to help stretch our local dollars. Kansas Travel and Tourisms ability to present cooperative advertising opportunities for communities has also historically been limited as Kansas marketing budget has been among the lowest in the entire nation for decades and is also among the lowest of all heartland states, not even keeping pace with inflation. Any potential for more cooperative offerings is great news for Lawrence and other communities. With the KTI comes the exciting possibility of increased funding for advertising Kansas as a visitor destination in general. As the public is more aware of Kansas as a whole, it makes promoting our individual destinations a more focused and effective effort. Kansas Travel and Tourisms current ROI from advertising is $52:$1. Imagine the possibilities for our state and local economies as were each able to leverage new dollars to spend competitively in promoting Lawrence and our state. BETTER ACCESS TO RESEARCH & PROFESSIONAL DEVELOPMENT. The Lawrence CVB staff is lean and as a result, we wear many hats. We constantly seek to stay on top of technology trends, industry trends and gather current research to make our local bureau as effective and accountable as possible but are limited in our abilities. With KTI comes the prospect of greater access to research and educational opportunities within the state and the opportunity to collaborate with other communities and VISIT KANSAS to improve our local efforts. With a more streamlined organizational structure, VISIT KANSAS will be able to better coordinate research from which many communities like Lawrence will benefit. Better access to good research and professional development helps us do our jobs better and in turn helps us grow our local economies. PRODUCT DEVELOPMENT. Douglas County is part of the federally-designated Freedoms Frontier National Heritage Area that encompasses 29 Kansas counties. A Management Plan for that area is under development. Once that is completed and approved through the Department of the Interior, it will serve as roadmap for how the area will be managed and allow partners to begin seeking federal funding for the area. Improved access to state product development resources could help make those federal dollars go further for a variety of potential projects in the area. Collaboration with the state as this Heritage Area develops is crucial. The Lawrence CVB enjoys a positive relationship with Kansas Travel & Tourism and is grateful for the work they do to bring visitors to our state. The KTI represents an unprecedented opportunity to improve that collaboration with competitive funding, professional staffing not subject to ever- changing political environments and better efficiency-- as an entity not tied by state regulations but instead directed by a widely-representative Board of Directors overseeing accountability. This is an exciting time for Kansas tourism and in Lawrence, the impact of the KTI would be immediate. We look forward to working with VISIT KANSAS as we all develop the economic impact of the visitor industry in our state. We believe this is the time to make an investment that will pay dividends for the citizens of Kansas. 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