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Pure Michigan Tourism Conference Summary

Pure Michigan Conference Dave Lorenz

Dave Lorenz presents at the Pure Michigan Governor’s Conference on Tourism in Traverse City

The Pure Michigan Governor’s Conference on Tourism was held in Traverse City last week. Representatives from convention and visitor bureaus and hospitality professionals from across Michigan gathered to learn about the state of our tourism state.

We had a legislative report from a panel of lobbyists in Lansing. Our keynote speaker addressed the State of the American Traveler. And Dave Lorenz provided an update from Travel Michigan including plans for this year’s Pure Michigan campaign.

Since I know many of our clients missed out on attending I thought I’d share a recap of the event. Here are some of the hot topics, statistics and strategic plans discussed at the Pure Michigan Governor’s Conference on Tourism that caught my attention.

Pure Michigan Legislative Report

Panelists: Michael Krombeen, Partner, Midwest Strategy Group; Matt Sowash, lobbyist, Michigan Legislative Consultants; Justin Winslow, President & CEO, Michigan Restaurant & Lodging Association; Evelyn Zois Sweeney, Legislative Consultant, Muchmore Harrington Smalley & Associates. The panelists discussed topics of legislative interest to the hospitality industry and weighed in on the current climate in Lansing.

Pure Michigan Funding

Governor Whitmer’s proposed budget includes cuts to funding for Pure Michigan. Panelists agreed this is too early in the budget talks to be certain of funding dollars for this year. Lobbyists from Michigan Legislative Consultants agreed they are going to educate and push for as much Pure Michigan funding as they can.

Post-Labor Day Start

This is not only an issue of economic importance, but a workforce issue as well. Currently over 165 districts have waivers for pre-Labor Day start. Legislative discussions are exploring alternative schedules. These include allowing Tues-Thurs classes in August, as well as options for year-round classes.

Snow Days

Legislation has been proposed to allow schools options to deal with the increasing number of snow days. Possibilities include tacking on additional hours to the school day, and snow day forgiveness for Governor-declared emergency days.

Short Term Rentals

Panelists discussed addressing short term rentals in terms of regulation. The primary goals are to ensure everyone is paying into the same taxes & assessments. They are also seeking some form of registration, possibly by directly licensing platforms  such as AirBnB.

Auto No Fault

This is becoming a hot button issue for the hospitality industry as employees struggle to afford insurance. Panelists discussed the likelihood of making significant changes this year, with mixed opinions.

State of the American Traveler

Keynote speaker; Erin Francis-Cummings, Destination Analysts

Erin’s presentation, “The State of the Global Traveler – Drawing Wanderlust to Michigan,” presented statistics and trends to watch in 2019 among travelers. Here research reflected the mindset of global travelers, indicated some key demographics to focus on, and gave insight into the changes we’re seeing. Here are few take-aways that illustrate the current state of the industry.

  • The bad news:  Leisure trips are down from 4.2 trips annually to 3.8 trips, and budgets are down 5.6%. Personal finances, work and the cost of travel are the primary reasons for the decrease.
  • The good news:  Travel is still listed as the second most important leisure activity, just under spending time with friends and family. For younger travelers, however, travel competes with a lot more activities.
  • 4 primary traveler types: Generation Z, the National Park Traveler, Family Travelers and Aspiring Michigan Travelers.

Generation Z

The youngest travelers are that of Generation Z—ages 15-24. To reach this audience you’ll need video. You can find them on Instagram, YouTube and Snapchat. Believe it or not they already make up 13.9% of the travel market.

National Park Travelers

This audience tends to be young and travels with their children. They use all types of planning resources. Primary interests include culture and food. They make up 31% of American travelers.

Family Travelers

Representing 47% of American travelers, this is clearly a popular target audience. This group is largely made up of women who frequently travel outside the U.S. This is a very social audience with 50% using Facebook to post both before and after their trips. They like AirBnB and are drawn to cultural and culinary experiences.

Aspiring Michigan Travelers

This is an ethnically diverse audience, largely made up of millennials and Generation X. They like to research travel destinations through travel apps, social media and tourism bureaus. Online video is important and influential.

Only 16% of American travelers aspire to visit Michigan. So how can we compete with other states and attract more travelers to Michigan? (Can you believe we fall behind Ohio!) The number one reason a destination remains top of mind to visitors is because they’ve been there before. The influence of friends and family impacts 65% of travelers. To grow our Michigan brand we need to gain loyalty. We need our visitors to continue to share their love of this region with friends and family—especially if they’ll share it on their social channels.

Michigan Cares for Tourism

This 501c3 non-profit is made up of volunteers from the tourism industry who want to give back to projects across the state of Michigan. They tackle small projects throughout the year and host an annual multi-day volunteer event in a select location. This year’s project is in our own backyard.

Michigan Cares for Tourism is seeking volunteers for the 2019 event at the Grand Traverse Lighthouse in Leelanau State Park, September 16-17, 2019. There are enough projects for 325 volunteers! To register visit michigancaresfortourism.org. C’mon Traverse City, let’s send some volunteers to help our neighbors. It’s a good excuse to hang out in a park on a Monday and Tuesday in the fall.

To kick off the conference, MC4T held an event at Munson Manor where volunteers donated toiletries, cooked food and tackled painting projects. Check In Michigan, the organization behind the Pure Michigan Governor’s Conference on Tourism, donated $10,000 to MC4T, with donations made on behalf of the conference speakers.

Pure Michigan Campaign Update

Dave Lorenz, Vice President of Travel Michigan made his annual trip to the stage to provide an update on the state of our tourism state. He delivered a report on the investment and returns on the 2018 Pure Michigan campaign. Next he shared a few highlights and top performing projects which earned significant results. And we wrapped up by hearing about some focus points for 2019. Here are a few of the take-aways.

Measurable Results from the $16.5 Million Advertising Investment in Pure Michigan in 2018

  • Influenced 6.4M person-trips
  • $2.5B in visitor spending
  • $153M generated in state taxes
  • $9.28 return on investment

Want to check out all the details? Here’s a link to the Pure Michigan Advertising Effectiveness Study. You can find more about what Travel Michigan is doing for you on Michigan.org. At the bottom of the page click Travel Industry and then look for Research.

Social Media Summary

Nick Nerbonne, MEDC Digital Media Director responsible for Pure Michigan social media accounts provided some additional insight during one of the social media sessions. Facebook engagement is down, however user base is still growing. Instagram engagement is up by 75%, due in part to the popularity and use of Instagram stories.

Pure Michigan has been exploring some longer-format feature videos to provide in-depth experiences. They include interviews that explore why people are passionate about these activities.

Two hugely popular social media campaigns were hashtag projects that drove user-generated content. The #FallFilter invited fans to share fall photos. Pure Michigan selected 5 photos each Friday and reposted. Another campaign debuted on billboards in Chicago seeking images at #LongLiveSummer. The digital billboard published user photos from that hashtag, sharing them on billboards for all to see.

Top social media post subjects in 2018 from Pure Michigan included images of the Mackinac Bridge, fall foliage, wildlife, ice waterfalls, Vernors lighthouse cans and blue ice on the Straits of Mackinac. Favorite fan subjects to share were sunsets, fall colors and Michigan lakes.

Pure Michigan Ad Campaigns and Projects

Pure Michigan partnered with influencers and publications last year to grow their brand awareness. Ginger Zee, meteorologist on Good Morning America and a Michigan native, was part of a social media promotion. They also teamed up with Outside Magazine for an engaging online experience that involved video creation, a landing page and interactive trail map.

Other notable projects included the Pure Michigan 18 – featuring 18 signature golf holes across the state in a season-long invitation to share your experience playing that hole. And an Urban DNA video series with Jason Hall was created to boost the state’s appeal for travelers seeking a world-class city experience.

We wrapped up with some sneak peeks into plans for 2019. Pure Michigan intends to focus more on digital platforms, targeting millennials, promoting the Upper Peninsula and highlighting our Dark Sky Parks.

Accessibility Takes Center Stage

One other significant take-away which made me very proud is our state’s focus on accessibility. If there was one buzz-word of this year’s conference that would be it. All three winners of the Stars of the Industry award for tourism innovations were programs and organizations supporting accessibility. Pure Michigan is embracing the opportunity to make our state more friendly to people with disabilities. And I for one couldn’t be happier to see it.

With three days of meetings, events and networking there was a lot to take in at the Pure Michigan Governor’s Conference on Tourism. It was great to see the new conference center at the Park Place Hotel, and the remodeled Governors’ Hall at the Grand Traverse Resort & Casino. Traverse City Tourism played host to a bustling crowd of tourism professionals from across the state. And I even had a chance to meet a few people who mentioned they tuned in to our channel and saw me on TV!

Now it’s time for us all to return to the business we live everyday: celebrating the reasons we choose to call Pure Michigan our home.

By |2019-03-12T22:26:39-04:00March 12th, 2019|Lodging, News & Events|0 Comments
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Proposed "Bed Tax" Increase to Boost CVB Marketing Efforts

hotel bed tax imageRegional Convention & Visitors Bureaus throughout the state are faced with the question of whether or not to increase their room assessment, also known as a “Bed Tax” from 2% up to 5%.

 

 

What’s the impetus behind this proposal? And what do our local CVBs plan to do? Here’s what I discovered.

 

 

 

 

The facts on Bed Tax

If you’ve ever studied your bill after checking out of a hotel in other Michigan cities of a similiar size you’ll notice a 2% fee in addition to sales tax. This is the room assessment, casually referred to as a Bed Tax. This fee is collected by lodging properties with 10 rooms or more, throughout Michigan. The purpose is to create a source of income to be spent on tourism marketing efforts, which in turn benefit the travel and tourism industry.

So, what’s the difference between an assessment and a tax? A very important distinction: A tax is levied on the public as a whole, and therefore must benefit everyone. An assessment is imposed on a specific group, who in turn receive the benefits. In 1984 Michigan Public Act 59 set the room assessment rate at 2%. A figure which has been in place ever since. To change this rate requires an amendment to the legislation. Which is exactly what happened last autumn. This amendment passed into law on December 5, 2010.

Travel Michigan, the State department responsible for the program, issued a referrendum to allow districts the opportunity to increase their rates from 2% up to 5%.

 

Benefits of a rate increase

I first learned of this proposed increase at a recent meeting of the Grand Traverse Area Hotel Motel Association. Brad Van Dommelen, President of the Traverse City Conventions & Visitors Bureau, spoke to the members about the reason for the proposed increase and what the CVB would like to do with the funds.

Traverse City Convention & Visitors Bureau recommendion is to increase the assessment to the maximum amount allowed of 5%. Their goals for the increase include:

  • Enhance their group sales effort to attract more regional and national associations
  • Create a year-round marketing effort with ongoing campaigns in major focus cities
  • Partner with Travel Michigan to create a national “Pure Michigan” ad specifically promoting Traverse City

 

By law, the majority of the room assessment must be spent on marketing.

According to Van Dommelen, while some funds go to operational costs, and improving group sales may require additional staff, “the vast majority of the increase will be spent on ad buys.”

Five years ago, the TCCVB spent approximately $40,000 on advertising and promotion. Last year this number was $660,000 on ad buys alone. A 3% hike in room assessments would mean a huge increase in purchasing power for the region.

 

What does this mean for Traverse City travelers

If the proposal passes, guests staying in Traverse City hotels will pay a 5% room assessment, and 6% sales tax, for a total of 11% at the bottom of their bill. TC visitors currently pay 8% total. On a $100 room the increase amounts to less than the cost of a latte. And for these few dollars per room, they can strengthen the marketing initiative that puts diners in restaurants, cars at the pump, tasters in wineries and golfers on the greens. We all know this is a beautiful destination. Perhaps we just need to a louder voice to let everyone else know.

 

Hotel reactions

The Grand Traverse Area Hotel Motel Association announced their support of the proposed increase at the February meeting. According to Jonathan Pack, GTAHMA president, “The board is cautious of any assessment increase, but our focus is on national advertising that would show off Traverse City’s many new national awards, like Top Ten Beach Town (awarded by AOL Travel), Top Ten Fall Color Town (awarded by Tripadvisor.com), and Top Ten Wine Town (awarded by USA Today).  Without the increase to the maximum amount of 5%, the capital needed to do a national campaign would take a many years, and the recent awards would be relatively old.”

Pack’s sentiment was echoed by many of the hoteliers I spoke with at the meeting, and since. When asked about their reactions to the proposal, so far, everyone’s response has been positive.

Bryan Moore of the Courtyard Marriott is in favor of the increase as a means for remaining competitive. “So many small communities have jumped on and increased rates. We don’t want to be lost or left behind.”

The travel and tourism industry is a competitive market. There’s a sense that the communities out spending money on advertising are the ones who reap the rewards with more visitor traffic.

Jeannie LaBonte, at the North Shore Inn is also in favor of the increase. “Whatever we can do to bring people up to Traverse City. It’s important.”

But in the end, it is up to each and every property in the district.

 

Approval process

In order to make the change each lodging property with 10 or more rooms, receives a ballot. The hotels must approve the referrendum by a simple majority. Each property receives one vote per room. The ballots are sent back to Travel Michigan, where they are counted and verified by a separate agency.

The Traverse City CVB began this process early this year. Ballots were due back to Travel Michigan on February 28th. The results of the proposed increase should be known by the middle of March.

If the proposal is approved the new rate will begin on April 1, 2011.

 

Where do other communities stand

Since I work with many businesses and properties in Benzie County I spoke with Mary Carroll, the Executive Director of the Benzie Area CVB, to find out about their plans.

Mary explained, “we are suppportive of the legislation that allows this to take place. But our board has decided not to increase at this time.” She explained their board is comfortable with the current assessment and the ways they are utilized for marketing. Even a two percent increase would double their budget. But they wonder, “if we had 50% more money, does that mean we can bring 50% more visitors to the area?”

 

The law passed on December 5, 2010 which allows each district the option to increase their room assessment up to 5%. Since that time several communities throughout the state have started this referrendum process, including Holland, Sault Ste. Marie and Marquette, some of which have completed their approvals.

 

 

By the end of the month we’ll know if Traverse City will have more funds to spend on marketing.

“We’re a four seasons destination. And we need marketing out there promoting us in all four seasons. Our product is gorgeous. I truly believe this is what we need to move us forward.”

   — Brad Van Dommelen

 

Resources:

For more information on the history of this legislation and Michigan assessment districts click here to check out the Destination Marketing Organization Manual for Michigan Assessment Districts.

By |2019-12-26T16:00:47-05:00March 9th, 2011|Lodging|0 Comments
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What are the 5 Most Common Items Hotels Guests Leave Behind?

Mealtickets hotel survey imageDigging Around in the Lost and Found

How many times do you check your belongings, dig through suitcases and peruse the room before closing the hotel door on the final day of vacation? If you’re anything like me, about a dozen. And yet, we still leave important items behind.

When I was a child we traveled often on weekends for my father’s business as an event promoter. Late night check-ins and early morning dashes to the van to get back on the road meant we often left essential items behind in our hotel room. Not on purpose of course, but it’s bound to happen when you’re in a hurry, or if you travel often enough.

A recent trip with my dad brought back memories of those excursions. And I started to wonder. What are the most common items hotel guests leave behind when they visit Northern Michigan?

Since I just happen to work with over 60 hotels in the Traverse City area, I thought I’d take a little survey and report the results.

 

 

The 5 most common items Northern Michigan hotel guests leave behind

#5  Swim suits

#4  Toiletries (shampoo, toothpaste, razors, etc.)

#3  Pillows

#2  Clothes

#1  Cell phone chargers

 

I’m sure the number one answer comes as no surprise. In fact, cell phone chargers are the number one item left behind in hotels worldwide. A study last year by Holiday Inn and Holiday Express in the UK revealed 42,000 cell phone chargers left behind in their hotels in one year. What’s more surprising is their collective value: nearly $1 million!

 

What Else Did They Leave?

Forget the most common items, what’s more entertaining is discovering what area visitors forgot in the closet, stashed in the safe and inexplicably left behind. Our survey of Traverse City area hotels revealed several stories, ranging from the odd to the downright embarrassing. Here’s our list of the top five.

 

Top 5 Most Unusual Items Hotel Guests Left Behind

#5  Adult toys
As you might expect, underwear and lingerie are often discovered after check-out. And more than a few hotels reported adult toys among the mix. We’ll spare you the EEEW factor and other details. This is a family-friendly website after all.

#4  False teeth
OK, I understand that you have to remove them for cleaning, and could accidentally leave them behind in a glass on the sink or something. But honestly, how do you forget them? And how often do you leave them behind that you can’t remember the last time you had them??

#3  A walker
Discovering a walker accidently misplaced, or folded neatly in the closet may not be all that unexpected. But finding one sitting in the parking lot at the center of a handicapped space gives it a ranking on my strange-o-meter. As Alanis says, “isn’t it ironic?”

#2  A police-issue 9mm handgun
Placed in the safe for security it was left behind. Unfortunately for the officer, that’s a big no-no. The hotel reported it and the officer got in big trouble with the department.

#1  Cremated urn of ashes
This one I just can’t paraphrase. An anonymous hotel found, “An urn of cremated ashes, yes of a person. When contacted the son said ‘throw him in the dumpster’. We tracked down a daughter who was happy to accept.” Strangely enough that same survey respondant also listed “human leg and hip bones from a doctor who does replacement surgeries.” Truth is stranger than fiction.

How to Keep Your Items out of the Lost and Found

It seems to me, we have all need to spend a few extra minutes packing and double-checking before we leave behind something essential…or embarassing.

Mealtickets vacation checklist imageOn that note I’ve created this handy Mealtickets Vacation Checklist to aid in your travel packing.

Click here to download our packing checklist for your next trip.

Staple it inside your suitcase, tuck it in your purse or duct tape it to your tailgate if you have to. Whatever works for you.

 

Have a great Up North Michigan vacation this summer. And may you, and your belongings, make it home safely.

 

 

By |2019-12-30T10:20:09-05:00June 15th, 2010|Lodging|0 Comments
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Stay in Style at the Wellington Inn

Wellington Inn carriage houseCharming Carriage House still has Room at the Inn

When I roam around the county filling displays at hotels, motels, resorts and wineries I try to take a moment and chat with the owners and staff. I stopped this week at the Wellington Inn in Traverse City and was surprised to learn that there was still room available in the carriage house this summer. Since I’ve never taken a tour of the property I asked Barb if she’d mind showing me around.

 

The carriage house was the first building to be renovated when Barb and Hank Richel purchased the Inn in 1999. The care and attention to detail of the property is evident everywhere you look. From the well maintained exterior to the antiquities it holds, the carriage house, and the Inn next door, is a perfect Traverse City getaway.

 

Wellington Inn carriage house imageWellington Inn carriage house imageWellington Inn carriage house image

Wellington Inn guest notes

 

 

 

 

 

 

 

There are two apartments located on the upper level of this former barn. Even as we entered the stairwell I couldn’t help but enjoy the collision of past and present. An antique original wallpaper mural guides us to the stairway and the apartments above. We opened the door to the first and walked into a casual comfortable place. The decor is French Country. Our view roamed from the tiny, but full-service period kitchen, to the living space and bright windows. There are two bedrooms which share one bath in this apartment. Each beautifully decorated with an attention to detail and nod to history and comfort. Guests leave their thanks and compliments in a notebook on the dresser for future dwellers to enjoy.

 

 

Wellington Inn carriage house imageWellington Inn carriage house imageWellington Inn carriage house imageWellington Inn carriage house

 

 

 

 

 

 

The second apartment is slightly larger, with 2 bedrooms and 2 baths. The light from the windows pours into the room and illuminates the Rishel’s attention to detail. Art Deco decor can be found throughout, from the fixtures to the artwork. And the condition of the pieces is amazing. The stamped velvet couch is vintage 1930s and it’s the origianal covering. The rooms are filled with antiques, many of which have been lovingly restored by Barb and Hank.

 

The Wellington Inn Bed & Breakfast is located in the heart of Traverse City. Guests are within walking distance of shopping, dining, galleries, the State Theater and of course, Grand Traverse Bay. Whether you stay in grand elegance at the historic 1905 Inn, or in pristine comfort at the carriage house, The Wellington Inn will not disappoint.

I doubt these apartments will last long, so contact The Wellington Inn today while there’s still room this summer. For more information on the Wellington Inn visit their website at www.wellingtoninn.com or give Barb a call at 877-968-9900.

By |2020-01-06T13:07:40-05:00June 10th, 2009|Lodging|0 Comments
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