Posted on 11/07/2016 11:20:00 AM PST by MichCapCon
Since 2006 this state has spent $295 million on an advertising campaign called Pure Michigan that is intended to draw tourism dollars here from other states. But a new study shows that state-funded efforts to promote tourism are mostly a blunder.
The marketing scheme is widely recognized thanks to its homey TV commercials showing picturesque Michigan locations and narrated by film and television star Tim Allen.
Michigan’s Legislature appropriated $34 million to the program for the current year, $1 million more than last year. Pure Michigan is managed by the Michigan Economic Development Corporation, which is the state’s economic development agency.
The study’s authors, Mike LaFaive, director of fiscal policy at the Mackinac Center for Public Policy, and Dr. Michael Hicks, a Ball State University professor and Mackinac Center board of scholars member, analyzed decades of tourism promotion data from almost every state to determine whether such programs have had an economic payoff.
“After analyzing 39 years’ worth of tourism promotion data from 48 states, we believe the answer is a resounding no,” the authors said.
LaFaive and Hicks conclusion is that no more taxpayer dollars should be spent on Pure Michigan.
The authors created a national statistical model to determine whether and how much effect tourism promotion spending had on the industries that typically benefit from more visitors — lodging, arts, amusements and recreation.
LaFaive and Hicks wrote that, “…for every $1 million in additional spending by a state on tourism promotion, there was an associated increase of $20,000 in additional economic activity shared by the entire accommodations industry in that state.” That’s a negative 98 percent return on investment.
Although their statistical model was built with data from around the nation, when it came to spending on these ads, “Michigan did not differentiate itself from the average,” according to the study.
The Michigan Legislature authorized spending an additional $1 million on the program this fiscal year, up from $33 million last year. “Our study suggests that will only result in an increase in economic activity of $20k shared by all hotels and motels in Michigan,” LaFaive said in an email.
For arts and crafts industries, the study’s model projects that in an average state, “for every $1 million increase in state tourism promotion, artists shared less than an additional $35,000.”
Despite these miniscule returns even to the industries most directly benefitted by the spending, MEDC has claimed that Pure Michigan is successful, recently boasting that in 2015 every dollar spent on it yielded a jump of $7.67 in state tax revenue.
But LaFaive and Hicks dispute the MEDC’s methods for determining whether the spending is cost-effective, saying they’re “steeped in secrecy.” The estimates were created by a consulting firm that has been the beneficiary of successive no-bid contracts from the MEDC. Yet the firm refuses to meet basic transparency requirements that would allow independent investigators to check its work.
DISMANTLE M.E.D.C.
The state of Michigan should pay for networks to air “Somewhere in Time”. The best ad for Michigan evah as the film was shot at Mackinac Island.
I used to tell my kids I was going to buy some serious frontage on lake superior and then pray for global warming to kick in.
Thanks for the pic/posts. Brockway Mtn Drive, my favorite spot in Michigan.
I grew up in Detroit. It used to be called the Paris of the West because of all the beautiful architecture.
That said we have lakes and two gold ribbon trout streams very near our home now and the water is just unbelievably clear.
Beautiful ads that did a lot to put some pride back into us here.
But a sad waste of money.
When I lived there the official slogan was “Say Yes to Michigan!” Was that one any more effective?
It is a beautiful state. I would encourage everyone to visit at least once.
For awhile Jeff Daniels, a native of Chelsea, MI was doing the narration.
I took my wife on a canoe trip in southern indiana. It sucked except now she really appreciates canoeing on the au sable river in grayling.
Spending time in the Thumb taught me that you DO get used to a 40 MPH wind out of the due north. Eventually.
They have been running those ads in Colorado for years. Trying to get Coloradans to vacation in Michigan? Seriously?
Yes i know that, from what I’ve read MI is a very beautiful state.
Part of the Ausable is within walking distance of our home.
My husband is a fishing fanatic.
Yup i understand that
“Useless” is a subjective term. How many lilly whites are employed spending this $295 million dollars? It doesn’t seem useless to me if that money is the difference between some children of the ruling class going to an Ivy league school rather than a state university with all the middle class students.
Northern Michigan surprises you with color at every turn. The wildlife is amazing.
After seeing what's happened to Paris in the last few years, it's the "Paris of the West" once again.
Now Dearborn is the “Paris of the West”, but for another reason...
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