ANNUAL REPORT ARIZONA OFFICE OF TOURISM 2004 AOT_175_5281no copy.indd 1 3/21/05 5:47:13 PM are all in the $30,000-$40,000 range, Highways, AOT received the Travel a level that exceeds the average salary Industry Association of America’s for employees in many other Arizona Odyssey Award for our Scenic Roads industries. How important is tourism Web site, www.arizonascenicroads.com, to the local economies in this state? which was developed in partnership In Williams, 70 percent of the jobs are with those agencies. The Odyssey supported by the tourism industry. Award is one of the industry’s most Thirty years ago, the Arizona Office of In Scottsdale, 39 percent of jobs are prestigious honors. Tourism (AOT) was created. Its charge sustained by our industry. Taken as was clear: Become the agency committed a whole, 20 percent of Arizona jobs as in every other industry, we live and to enhancing the economy of the state are there because we are here. die by our numbers. I am pleased to DIRECTOR’S LETTER through development and expansion of Awards are gratifying but in tourism, The combination of jobs and report that last year was a record year the tourism industry. Over the past three visitors is a potent boost to our for domestic visitors. We saw an increase decades, many directors have brought economy, providing Arizona with an in domestic visitation to Arizona of their own vision to this task. The result impressive return on its investment in 3.6 percent. But I must temper this is a thriving and growing industry that AOT’s tourism marketing programs. We good news by noting that competitor positively impacts every Arizonan. know that tourism contributes $16 billion states are gaining ground on us. Today, tourism is the only industry in direct visitor spending to the economy. To remain competitive in the common to all 15 counties in Arizona. The total economic impact of our industry future, AOT is committed to: This means that people in every single is $30 billion. And tourism generates • Continually refine our research county are employed because our $1 billion per year in tax revenue to capabilities to better understand industry is there – working and growing. Arizona with millions of dollars more our targeted visitors. Statewide, our industry is responsible for supporting 450,000 jobs in Arizona. Many of these jobs pay more than generated in tax revenues to cities • Leverage funding dollars to achieve and counties. the maximum return on investment. These impressive results reflect the • Strategically communicate to our $50,000 a year. A sampling of average outstanding partnerships we have put in targeted domestic and international salaries, according to a 2002 survey by the place to enhance the economy of Arizona visitors through creative and American Hotel & Lodging Association, by developing and expanding the tourism timely messages that encourage and reveals that general managers earn industry. We forge relationships with an average of $97,300 annually, while public entities like convention and visitors directors of sales and marketing earn bureaus, chambers of commerce and an average of $70,100 per year. Food non-profit organizations, as well as with I am pleased to present you with and beverage directors pull in $64,900 many private businesses that work with our Fiscal Year 2004 Annual Report. annually; executive chefs earn an average the state both as vendors and partners. of $53,800. Salaries for front office In recent years our efforts have managers, sales managers, catering attracted national recognition. In 2004, sales managers, sous chefs, executive along with the Arizona Department of housekeepers and reservation managers Transportation (ADOT) and Arizona 2 AOT_175_5281no copy.indd 2 compel them to travel to our state. • Strengthen our strategic partnerships throughout the state. Margie A. Emmermann, Director, Arizona Office of Tourism ARIZONA OFFICE OF TOURISM 3/21/05 5:47:13 PM The Year in Review Tourism is a technology-driven, global industry that demands constant innovation. As an impactful export industry, tourism drives the Arizona economy. FY04 Program/Services AOT Funding Under the leadership of Governor In FYO4, Governor Janet Napolitano Janet Napolitano, the Arizona Office proposed “performance-based” of Tourism committed itself in 2004 (formula) funding for AOT. With the to establish Arizona as a top-of-mind support of AOT and the tourism destination for the state’s domestic industry, this goal was accomplished. and international targeted visitors. When performance-based funding To achieve this over-arching goal, takes effect in 2005, AOT will be AOT Director Margie A. Emmermann able to compete more effectively put in place several successful and with states having large privately- award-winning marketing programs funded, man-made attractions. that delivered the desired visitors, Because performance-based funding generated millions of dollars in will enable AOT to expand its in- revenue for Arizona’s tourism partners, state marketing efforts, increase and continued to grow the tourism exposure for the state in the sector as one of the major economic international arena, and provide drivers for the State of Arizona. more funds for TEAM (Teamwork for Effective Arizona Marketing) 3 AOT_175_5281no copy.indd 3 ARIZONA OFFICE OF TOURISM 3/21/05 5:48:08 PM grants to Arizona communities, tourism The Approach will be empowered to grow the Arizona Committed to making Arizona top of economy at an even more impressive rate. mind in awareness among its targeted In FY04, AOT celebrated great consumers and providing strong leadership successes despite operating with limited for the tourism industry in the state, AOT dollars. Appropriated funds for the Agency deployed a strategic, research-based were $9 million. Revenues from Indian approach in FY04 that attracted and gaming (Proposition 202) added $2.3 retained its targeted visitors and created million, bringing the total to $11.3 million. key opportunities for its partners to In addition to these funds, AOT acts as benefit from increased visibility. the awarding institution for Proposition In Arizona, AOT returns the state’s investment through cost-effective programs that promote a strong brand identity for the Grand Canyon State and motivate tourism activity. AOT staff is dedicated to fulfill its mission to “enhance the state economy and the quality of life for all Arizonans by expanding travel activity and increasing related revenues through tourism promotion and development.” Although Arizona has historically competed with destinations that are better funded, by budgeting strategically AOT leveraged and maximized its resources, enabling the agency to 302, the Maricopa County Grant Program. achieve its four major goals. In FY04, AOT passed $4.4 million through to Maricopa County Destination Marketing Organizations (DMOs). AOT BUDGET BREAKDOWN MEDIA ADVERTISING 49% FULFILLMENT 5% MEDIA RELATIONS TRAVEL INDUSTRY MARKETING RESEARCH & DATA REPOSITORY 10% 4 AOT_175_5281no copy.indd 4 2% 11% 6% 8% 8% TOURISM DEVELOPMENT/MATCHING GRANTS WELCOME CENTERS/VISITOR SERVICES ADMINISTRATION ARIZONA OFFICE OF TOURISM 3/21/05 5:48:08 PM Research: Our foundation for all decision-making The heart of the AOT strategic plan is research. To further refine its research capability, the agency The Research Division drives the goal of “continually refining our research capabilities to better understand our targeted visitors” and shares this data with AOT and its tourism partners. CURRENT MARKETS commissioned Longwoods International to perform an • Empty Nesters—45-64, $150 K + HHI ad effectiveness study that • Affluent Boomer families— measured the effectiveness 45-54, $150 K + HHI of the ad message, ad placement, return on investment and perception of Arizona among targeted visitors. AOT’s Research Division continually updates all other divisions on the DEVELOPMENTAL MARKETS • Trailing Boomer families— 35-44, $75 K + HHI • Arizona residents—35-64, $50K+ HHI latest research data and makes it available to our tourism partners via the agency’s business-to-business GOAL 1: CONTINUALLY REFINE OUR RESEARCH CAPABILITIES Web site, www.azot.com. TO BETTER UNDERSTAND In FY05, AOT will build on this research by conducting a “perceptual OUR TARGETED VISITOR. mapping” study to further refine and identify our target markets and messages by helping us understand how travelers perceive the state. By effectively and efficiently “mining” data from our market research efforts, we identified, targeted and attracted our targeted visitor in cities and regions throughout the U.S. We learned where these people live, what they like to do, buy, read, drive, and eat, and what “triggers” their choices for leisure travel. 5 AOT_175_5281no copy.indd 5 ARIZONA OFFICE OF TOURISM 3/21/05 5:48:09 PM Our ROI: Tourism pays off for Arizona Under the leadership of Margie Emmermann, every AOT division is committed to achieving our goal to “leverage funding dollars to achieve the maximum ROI.” In FY04, AOT continued to work smarter and more strategically to attain the most return for every dollar invested in tourism. For every one dollar ($1) spent on the FY04 AOT advertising campaign, Arizona received $238 in direct visitor spending, plus $19.02 in total taxes returned per ad dollar invested. This translates to $5.71 in state taxes and $13.31 in local 6 AOT_175_5281no copy.indd 6 In FY04, the tourism sectors of lodging, restaurant/bar, retail, and amusements generated more than $455.5 million in direct tax revenue, an 8.2 percent increase over FY03. Our outstanding ROI proves that by taxes for every $1 invested in advertising attracting increasing numbers of targeted (Longwoods International 2004). in-state, out-of-state, and international In FY04 tourism: visitors to Arizona, AOT is meeting its • Contributed $16 billion in direct objective to enrich the economy of the visitor spending to the economy. state and the lifestyle for all Arizonans. • Is the only industry common to all 15 counties - outpacing industrial machinery, transportation/logistics, GOAL 2: LEVERAGE FUNDING and agricultural processing/technology, DOLLARS TO ACHIEVE THE MAXIMUM which only appear in six counties. RETURN ON INVESTMENT (ROI) • Supported 450,000 jobs in Arizona, many FOR THE STATE OF ARIZONA. of which pay more than $50,000 per year. ARIZONA OFFICE OF TOURISM 3/21/05 5:48:10 PM Our visitors: Making Arizona “top of mind” Arizona attracts domestic (U.S.) and (These numbers are calculated on international visitors who travel to the calendar year, not fiscal year.) Arizona for pleasure (as leisure travelers) The overnight domestic visitor spent and for business. To effectively reach on average $106.26 per person, these markets, the agency conducts per day, down slightly from a comprehensive and collaborative $108.49 the previous year. program of work that involves every Our small, but significant international market. division and department in the agency to ensure maximum impact for the state. International visitors accounted for Who is our domestic overnight visitor? just 7 percent of Arizona’s visitation in For the calendar year 2003, Arizona contributed more than $200 million welcomed 27.8 million domestic overnight to the state’s economy. Although the visitors. Domestic overnight visitors to number of international visitors to Arizona came from all over the U.S. with Arizona decreased 15.3 percent to California providing the most significant 544,000, spending per day increased The Advertising, Fulfillment & Media Relations Division, working collaboratively with the Travel Industry Marketing Division, delivered on the goal to “Strategically communicate to our targeted domestic and international visitors through creative and timely messages that encourage and compel them to travel to our state.” calendar year 2003. But these visitors origin market, $10 to $84.00. The good news is that supplying 27 percent the outlook for international visitation of Arizona’s domestic in calendar year 2004 looks stronger. overnight visitors. Travel trends: A mixed report. 2003 direct spending from international travelers. Overnight travel within Arizona by Canada: $236 million Arizonans rose by 25.3 percent in Mexico: $103 million* calendar year 2003. Leisure visitors United Kingdom: $ 40.7 million to Arizona increased by 8.8 percent, Germany $ 39.3 million while business travelers decreased by Japan: $ 24.3 million 11.3 percent. Overnight travel by non- GOAL 3: STRATEGICALLY residents decreased by 3.3 percent. COMMUNICATE TO OUR TARGETED Direct spending by visitors was up DOMESTIC AND INTERNATIONAL 1 percent in 2003 to $12.4 million. VISITORS THROUGH CREATIVE AND TIMELY MESSAGES THAT ENCOURAGE AND COMPEL THEM TO TRAVEL TO OUR STATE. * 7 AOT_175_5281no copy.indd 7 Visitors traveling by air only. ARIZONA OFFICE OF TOURISM 3/21/05 5:48:10 PM Branding Arizona: The National Campaign campaigns augmented the media To position Arizona as the choice cities. To build customer loyalty and destination for our preferred visitor maintain repeat visitors, the campaign in FY04, AOT created and placed employed the most useful current an aggressive, targeted, national-paid technology and the Internet. schedule in targeted key originating media schedule. The message and media schedule reflected a strategic balance that strongly supported peak seasons in both Northern Arizona and Central/Southern Arizona. AOT_175_5281no copy.indd 8 generated 51,017 inquiries or requests for information — 5,000 more than AOT’s best month four years ago in February 2000. We base all ad buys on our sophisticated market research so that each placement returns optimum results. Ad buys are strategically timed to maximize the impact of our state’s diverse climate, as well as to showcase a variety of activities. All ad buys share one goal: To reach our targeted visitors in the most cost– effective way so that they are compelled to travel to Arizona in every season. 8 Success Story: In February 2004, AOT Selling Arizona: The Target City Campaign In FY04, AOT launched a comprehensive and collaborative The campaign introduced Arizona’s effort by the Advertising, Media key destination drivers to a larger Relations and Travel Industry audience, while concentrating on Marketing Divisions to sell Arizona as attracting baby boomers to the state. a premier destination to pre-selected Ad buys leveraged regional marketing travelers in targeted cities throughout efforts to capitalize on travel trends the U.S. Research conducted by to shorter, more frequent vacations. the agency determined which cities To drive leisure travel, layered media and regions support the significant ARIZONA OFFICE OF TOURISM 3/21/05 5:48:11 PM populations that match our targeted April 2004. Magazine placements demographics. The campaign was appeared in October, January, supported by paid advertising, media February, March, April and May. relations and travel industry sales missions Newspaper placements appeared in and captured the spirit and lifestyle that March and April in the Los Angeles is synonymous with Arizona. Unveiled Times and San Diego Union-Tribune. in cold-weather destinations during the winter months, the message leveraged the warm winter climate of Central and Southern Arizona. The campaigns ran in a variety of marketing mediums including TV, radio, print, outdoor and even coffee wraps. How did we do? The FY04 Target is committed to this market for the long haul. Southern California continues to account for 20 percent of overnight domestic travelers to Arizona. Chicago expectations. Here are the details. AOT advertised Arizona as “a great Where we were in FY04 winter escape” during the Chicago Target City Campaign. It included a Chicago Target City Campaign, which won the Mercury Award from the Travel Industry Association of America, AOT implemented a broader 2004 Target Minneapolis-St. Paul, Portland, St. Louis and Dallas. AOT used the “Arizona. The Perfect Cure for your Winter Cold” Campaign in the winter months to increase the exposure, response Training promotion. Media placement started in November 2003 and continued and layered media schedule included radio, TV, magazines and newspapers. Success story: Like Southern California, Chicago represents a long-term The success of the FY03 Chicago locations over the national average. campaign prompted a strategic five-city The peak winter season allows AOT to target consumers with enough lead time to plan a warm-weather getaway. The layered media campaign included print, interactive online placements, rollout in FY04. AOT’s FY04 Chicago targeted advertising campaign resulted in a sizeable segment of viewers (17 percent) taking a positive action after viewing the advertising. The most frequently coffee wraps, radio and TV. taken action was to visit an Arizona Web site, with a reading of 12 percent. Southern California Broadcast promotions began in August September 2003 and February to campaign and a Cactus League Spring marketing effort by AOT and its partners. and leads from these key geographic 2003 with the campaign running in promotional trip giveaway, a branding through March 2004. A comprehensive Cities Campaign in Denver, Chicago, AOT_175_5281no copy.indd 9 California is a short-haul market, AOT City Campaign met and exceeded all Based on the success of our 2003 9 Success story: Although Southern This action was particularly popular among younger respondents (16 percent) and frequent travelers (16 percent). ARIZONA OFFICE OF TOURISM 3/21/05 5:48:11 PM Denver Portland area. In February 2004, AOT St. Louis This campaign, like the Minneapolis/St. received a total of 3,340 from the same The campaign ran during the month of Paul and St. Louis efforts, was supported area, with 2,840 attributed directly to the February with placements on radio, TV by a media relations program and travel Target City Campaign. In addition, there and print ad buys. Coffee wraps were industry sales mission. The campaign ran was a 179 percent increase in requests for used in local cafés, along with direct and mid-November through mid-December, information — from 1,793 in FY03 to 5,014 electronic mail and two rotary billboards. 2003, with radio spots, TV, coffee wraps, in FY04. The “Vacation in Arizona” Web print ads, and direct and electronic site, a unique site created for the Portland mail, plus a geographically targeted campaign that ran in February 2004, ad buy schedule on AWAY.com. accounted for 2,419 additional requests Success story: There was a 135 percent Success story: Awareness of Arizona as a vacation destination increased a significant 8 points between pre- and post surveys of the St. Louis population, in February, March and April of 2004. from 27 percent to 35 percent. 18 percent increase in requests for information, from of viewers took positive action after 1,998 in FY03 to 4,711 in FY04. The “Fly to viewing the advertisements. Arizona” Web site, a unique site created for Minneapolis/St. Paul Dallas the Denver campaign that ran in November The campaign ran throughout the month of The campaign ran in March with print 2003, accounted for the additional February with placements on radio, TV and advertisements in magazines and 1,805 requests in December 2003. print ad buys, and with a supporting sales newspapers, radio spots, TV, direct mail, mission. Coffee wraps were used in local electronic mail and outdoor advertising. Portland This campaign ran during the month cafés, along with direct and electronic mail. Success story: In FY04, the number of of February with placements on Success story: The number of people people requesting an “Official State Visitor’s radio, TV and print buy ads. Coffee from Minneapolis/St.Paul who Guide” from Dallas increased 46.8 percent, wraps were used in local cafés, along requested an “Official State Visitor’s from 4,414 in FY03 to 6,479 in FY04. with direct and electronic mail. Guide” increased 58.8 percent, from Success story: During February 2003, 6,000 in FY03 to 9,529 in FY04. AOT received 291 inquiries from the 10 AOT_175_5281no copy.indd 10 ARIZONA OFFICE OF TOURISM 3/21/05 5:48:15 PM The Target City Campaign generated more than 128 million gross impressions and more than 27,000 leads overall. This highly successful campaign provided excellent brand visibility for AOT and our airline and hotel partners. We amplified our national and target city messages with technology. between the state and our visitors. Web site www.azot.com. All Web sites Our Web sites also support Governor yielded impressive results. Arizonaguide.com, Janet Napolitano’s request that state for example, received more than Led by the Advertising, Fulfillment and Media Relations Division, we dramatically increased the effectiveness of the internet. agencies move toward a paperless society. 5,000 visitors per day and more To achieve our goal of communicating than 2.2 million visitors per year. Because the Internet is increasingly targeted domestic and international visitors, the tool of choice for obtaining travel AOT maximized its technology-based information 24/7, AOT refined and opportunities in FY04. Our messages enhanced its Web sites. Web sites were amplified electronically through two are an effective tool to support the consumer Web sites: flow of information about Arizona www.arizonaguide.com and as the travel destination of choice www.arizonavacationvalues.com and and strengthen relationships through our business-to-business 11 AOT_175_5281no copy.indd 11 most effectively and efficiently with our Success story: In FY04, AOT received 2,263,181 visitors to www.arizonaguide.com, while www.arizonavacationvalues.com had more than 2,500 offers posted by more than 1,000 businesses. Because we know that customer relationships are the key to the visitor experience, we constantly fine tune our Web sites to make them more userfriendly, relevant and informative–24/7. ARIZONA OFFICE OF TOURISM 3/21/05 5:48:17 PM We amplified our message through the media. Generating positive publicity and increased media exposure for Arizona as a premier travel destination continued to be a top priority for AOT in FY04. By becoming a trusted resource for travel writers, the Media Relations The Media Relations Division created and implemented an intensive program to generate positive attention from selected media who reach AOT’s domestic and international target markets. staff attracted millions of dollars in “earned media.” appears as features and news stories in newspapers, magazines, television To grow domestic and international in- and radio. Earned media enhances the bound leisure tourism, it is essential to agency’s ability to touch our targeted reach the travel trade industry. In FY04, domestic and international markets and the Travel Industry Marketing Division encourages travel to Arizona. Public generated news and excitement about relations activities included creating and Arizona as a travel destination among distributing press releases, organizing industry professionals who could promote familiarization trips for qualified writers to Arizona to their clientele. To attract their introduce them to the state, and working attention, AOT aggressively promoted the with U.S. and international journalists to state at trade shows, and through sales produce stories that drive tourism traffic. missions and familiarization tours. Agency advertising, earned media staff met with U.S. and international attention to Arizona, the Media Relations Division wrote and distributed more tour operators, travel agents and with wholesalers who expand additional inbound tour and travel programs that than 30 news releases targeted at 1,200 high-value travel writers. Overall, in FY04, the Media Relations effort generated 1,835 articles worth more than $23 million of free travel-related publicity. This included 145 televised travel broadcasts reaching 2.8 million viewers. AOT_175_5281no copy.indd 12 We amplified our message by connecting with the travel industry. By working closely with the professional travel industry, the Travel Industry Marketing Division raised the visibility of Arizona as a destination of choice for their markets. As opposed to paid Success story: To attract media 12 Research shows that readers and viewers respond more positively to earned media than to paid advertising. By complementing our paid advertising schedule with a targeted media relations program that drives results, AOT adds the power of “expert testimony” to its marketing mix. encourage more leisure travel to Arizona. Beginning in FY05, performancebased funding will enable AOT to add international consumer advertising to this mix. This advertising will greatly enhance the marketing effort to ARIZONA OFFICE OF TOURISM 3/21/05 5:48:17 PM influence the travel industry to promote targeted AOT direct marketing and Arizona as a premier destination. e-marketing. Within four years, AOT is on track to immediately view potential visitor Success story: AOT attended more than information, such as personal preferences, 15 trade shows in the U.S. In addition, economic history and travel patterns. the agency was represented at trade The agency will then be able to respond shows and sales missions in the five key international markets. The Travel Industry Marketing Division attended 20 percent also conducted five familiarization tours for key travel trade representatives to ���� ������ ��� ����� ��� ��� We improved our response time to meet increased demand for our product. ����� ��� ����� ��� ����� ��� ����� ��� ����� ��� ����� Marketing builds interest, but fulfillment makes sales. To ensure that every inquiry is answered promptly and effectively, AOT continued to work closely with our call ���� ������ ���������������������������������������� center and travel counselors who fielded 25,000 calls about travel to Arizona in FY04. In addition, more than 2 million visitors were tracked to AOT’s consumer Fulfillment is under the direction of the Advertising, Fulfillment & Media Relations Division, which directed the customerresponse effort with the goal of creating a more seamless experience for anyone inquiring about travel to Arizona. Our visitor centers play an important role by allowing us to “touch” our customers. They are under the supervision of the Tourism Development Division, supported by Advertising, Fulfillment & Media Relations. Well-staffed visitor centers encourage travelers to extend their stay and create the demand, the a long-lasting, positive impression, agency mailed which encourages repeat visits. Success story: AOT’s Painted Cliffs Packets to prospective visitors. Packets Welcome Center, located on Interstate included the “Official State Visitor’s Guide” and “Official State Visitor’s Map.” AOT_175_5281no copy.indd 13 We get to know our customers through our visitor centers. Web sites. To meet 425,000 Arizona Travel Information 13 greatly enhance our ability to anticipate Information is our most important product. By “slicing and dicing” all travel inquiry information, we can better understand the travel preferences and lifestyles of our current and potential visitors. In FY04, we employed sophisticated data mining techniques to provide us with essential information that helped us grow our business. ����� ��� ����� marketing and fulfillment effort will and meet the needs of our visitors. encourage more travel to Arizona. Our representatives in the U.K., Germany, Mexico, Canada and Japan are raising the visibility of Arizona as a positive destination for international travelers. ���� ����� appropriate Arizona travel products to them. This collaborative research, more trade shows in FY04. The agency �������������������������������� �������������� almost instantaneously, recommending 40 in Lupton, Arizona, welcomed almost 92,000 visitors in FY04. On average, Success story: In addition to fulfilling 21 percent of Painted Cliffs’ visitors the demand for information, AOT extend their stay in Arizona as a result has captured and “mined” 1.4 million of the additional information they highly qualified customer names for receive at the center. ARIZONA OFFICE OF TOURISM 3/21/05 5:48:18 PM Our partnerships: Producing strategies for success in-state and out-of-state advertising campaigns that individual cities and towns To attract more visibility to the state and within each region could not afford to build awareness of Arizona as a premier do on their own. Each partnership also travel destination for our targeted visitors, produces a comprehensive fulfillment AOT created new strategic partnerships piece that is representative of the and supported existing partnerships accommodations, attractions, activities in FY04. Our partnerships encourage and events available in each region. GOAL 4: STRENGTHEN OUR STRATEGIC tourism entities Success story: In FY04, the Northern PARTNERSHIPS THROUGHOUT THE STATE. to work together Arizona Marketing Coalition attracted as regions, cultural associations and 13,441 leads from people requesting inter-governmental organizations. information about traveling to Arizona/ Northern Arizona. This is a 58 percent Regional partnerships Since 2000, AOT has designated more than $2 million in regional marketing funds. Regional partnerships are highly successful programs, as they respond At AOT, partnerships are supported by every division within the agency including Research & Strategic Planning; Advertising, Fulfillment & Media Relations; Travel Industry Marketing and Tourism Development. All divisions collaborate as needed to assure success of these critical programs. to how visitors really travel. In general, visitors to the state increase over the previous year. The jump in response is largely due to AOT’s emphasis on driving traffic online, specifically to www.grandandbeyond.com, a splash page developed by AOT for the Northern Arizona Marketing Coalition. Coming in FY05: The goal is to travel to see an maximize the value of additional dollars area or a region rather than a single destination or attraction. By working in collaboration, regional partnerships have proven that cooperation builds business and enriches visitor experiences. available in the budget and drive visitation through the following initiatives: • Increase campaign effectiveness in national and regional publications with high-impact magazine inserts Northern Arizona Marketing Coalition & Southern Arizona Partnership and promotions through strategic AOT continued to work with both the Scottsdale convention and visitor Northern Arizona Marketing Coalition bureaus (CVBs) and other destination and the Southern Arizona Partnership management organizations (DMOs). alliances with Greater Phoenix and to promote tourism to stimulate the • Explore “pay per lead” mediums economy in those regions. Regional such as Direct Response TV and partnerships promote stronger alliances online media maximization. within the region and enable AOT and the regions to work together more effectively to influence travel from key geographic target markets. Both partnerships conduct 14 AOT_175_5281no copy.indd 14 ARIZONA OFFICE OF TOURISM 3/21/05 5:48:18 PM as liaison with Arizona tribes and be a reliable base of information about and Travel Industry Marketing their advocate within the agency. AOT tourism opportunities already existing Divisions to develop new campaigns also formed the Tribal Tourism Advisory on tribal lands. It is also creating a forum in international markets, focusing on Committee in FY04 to strengthen and to begin the conversation among tribal Canada, Mexico and the United Kingdom. support this new strategic partnership. tourism representatives and AOT about • Explore the domestic Hispanic The immediate goal of the advisory the kinds of visitor experiences that could market following a Hispanic committee was to build trust among be created in the future to benefit tribes. research project that will increase the tribes with AOT. The long-term goal understanding of the destination is to provide marketing expertise and drivers important to that market. support for tribes that want to enhance • Combine efforts of AOT’s Advertising • Build on success of the Target City Intergovernmental partnerships: Arizona Highways and the Arizona Department of Transportation their economies by providing visitors Campaign that produced a 52 percent with opportunities for culturally-sensitive increase in consumer inquiries. The tourism experiences. In addition, AOT use of unique URLs will help track agreed to conduct a year-long visitor effectiveness in key online mediums. survey to assess visitor expectations The Research, Advertising and Tourism Development Divisions all worked together to strengthen this strategic partnership that was realized in FY04. Cultural partnerships: Tribal tourism and experiences with Native American AOT continued to participate in successful This strategic cultural partnership is directed by the Tourism Development Division and supported as needed by other divisions. tourism and measure the economic impact intergovernmental partnerships to develop of tourism on Arizona tribal lands. a promotional and informative program In December 2003, Governor Janet Napolitano convened a Tribal Tourism Summit in Yuma, Arizona with representatives of Arizona Indian Tribes and AOT. As a result of the summit, AOT hired a Native American tourism development manager in FY04 to act 15 AOT_175_5281no copy.indd 15 to increase travel on Arizona’s scenic Success story: The Native American parkways, and historic and scenic roads. tourism development manager, working That project was funded by a $300,000 with the Tribal Tourism Advisory federal transportation grant. In FY04, the Committee, has begun the task of agency launched a $100,000 consumer establishing more open communication between Arizona’s tribal tourism offices and AOT. This important new effort is creating advertising campaign to promote travel on scenic roads throughout the state. AOT developed an interactive ARIZONA OFFICE OF TOURISM 3/21/05 5:48:21 PM Web site, www.arizonascenicroads.com, of Commerce, U.S. Fish and Wildlife, in cooperation with Arizona Highways and U.S. Forest Service to enhance and the Arizona Department recreation and tourism in Arizona. of Transportation. Arizona KidZone Success story: Since www.arizonascenicroads.com was activated in November 2003, it has generated 223,799 visits to the Web site. The Travel Industry Association of America (TIA) presented AOT, The Arizona Department of Transportation (ADOT) and Arizona Highways with This educational Web site for school-age children gives virtual tours of Arizona’s public lands, historic sites and cultural attractions. The site is featured on its 2004 Odyssey Award, one of www.arizonaguide.com and is promoted the highest honors in the U.S. travel industry. Accepting on behalf of each respective organization was Margie A. Emmermann, director of AOT, Victor Mendez, director of ADOT and Win Holden, publisher of Arizona Highways. Arizona Council for Enhancing Recreation and Tourism (ACERT) AOT is an active member of ACERT, working with the Arizona Commission on the Arts, Arizona Department of to children who request information from AOT for school reports and projects. To leverage our “reach” within the industry, we create strategic “live” and “virtual” partnerships that work for all of us. These partnerships are mutually beneficial and created for the long run. Community-based partnerships AOT creates meaningful partnerships with the public and private members of the tourism community to stimulate product development and promote Commerce, Arizona Department of Education, ADOT, Arizona Humanities Council, Arizona Public Lands, Arizona State Parks, Arizona State University, The Tourism Development Division leads this strategic inter-governmental partnership that leverages the strength of numerous agencies involved in activities that attract visitors to Arizona. In FY04, by working together collaboratively, this consortium helped elevate Arizona’s reputation as a “first choice” destination for our targeted visitors. The Tourism Development Division works in strategic partnership with ACERT to maintain the KidZone Web site, bringing the wonders of Arizona to schoolage children and nurturing a future market of Arizona-bound travelers. Audubon Arizona, Arizona Game and Fish, Bureau tourism throughout the state. The agency drives this initiative in two primary ways: Through Community Outreach workshops that it presents throughout the state and through TEAM grants awarded by the agency to of Land Management, individual communities and regions. Museum Association of Arizona, National Park Service, Northern Arizona University, Public Lands Information Center, University of Arizona Cooperative Extension, U.S. Department 16 AOT_175_5281no copy.indd 16 ARIZONA OFFICE OF TOURISM 3/21/05 5:48:22 PM Community Outreach workshops awarded to Arizona communities and non- Many non-metro Arizona communities profits, resulting in a $2 million marketing lack resources needed to draw visitors “reach.” The TEAM program created a to their areas, so AOT strengthens significant layer of destination awareness its strategic partnerships throughout that complemented the agency’s national the state by providing guidelines and international branding campaigns and training for communities seeking and drove business to the cooperating grants and promotional assistance. communities and consortiums. Training includes consumer advertising, Community Outreach Workshops are directed by media relations, travel the Tourism Development Division, along with the industry marketing, research cooperation and collaboration of all divisions that help produce and staff the workshops. methods, strategic planning, essential to creating and maintaining strong partnerships, AOT meets with and visitor information services. public relations and tourism trade professionals representing communities throughout the state so that everyone presented six workshops totaling 179 can share information and build stronger attendees, increasing the average relationships that are mutually beneficial. number of attendees over FY03 at reference tool and 97 percent of those Media Relations and Travel Industry Marketing staff design and produce workshops and professional roundtables that help tourism professionals in Arizona communities hone their skills. who attended indicated they would Grand impressions workshops recommend the workshop to others. Developed in partnership with the each workshop by 15 percent. Of those who attended, 100 percent planned to keep the workshop workbook as a Northern Arizona University School TEAM grants In FY04, TEAM matching grants were awarded to individual communities, Native American communities and regional consortiums and organizations to fund advertising, media relations campaigns, printed material and other tourismThe Tourism Development Division drives this strategic partnership program that encourages regions to work cooperatively to raise awareness of their unique destination and therefore create more positive attention for the state of Arizona. related marketing. Non-profit Arizona tourism organizations that met AOT’s requirements and matched the requested funds were also eligible to receive TEAM grants. Approximately $1 million was AOT_175_5281no copy.indd 17 Because open communication is product development, TEAM grants Success stories: In FY04, AOT 17 PR and trade roundtables of Hotel and Restaurant Management, these free, day-long educational seminars help tourism professionals learn more about Arizona and polish their superior customer service skills. Seminars travel throughout the state and are designed for visitor center employees, volunteers and frontline hospitality employees. All of these community outreach programs build knowledge, sophistication and synergy in the industry by encouraging and promoting new and enhanced tourism products locally, regionally and statewide. ARIZONA OFFICE OF TOURISM 3/21/05 5:48:23 PM Looking ahead • Enhance domestic marketing While AOT is very pleased with the efforts in key target cities to results achieved in FY04, our staff is generate new dollars for the state. fully committed to repeating and even exceeding these successes in FY05. To meet this new challenge, AOT remains • Increase focus on the Grand Canyon as Arizona’s landmark tourism asset. • Initiate consumer advertising in dedicated to the four overarching goals international markets whose visitors that drove our program in FY04. We stay longer and spend more. • Reach out to the rapidly growing will continue to refine our research capabilities to better understand our Hispanic market to position Arizona targeted visitors, leverage funding as a premier destination for these visitors. • Build on the growth of the leisure travel dollars to achieve the maximum ROI, communicate with our targeted visitors with creative and timely messages that market that is driving the current recovery. • Increase TEAM grant funds to encourage and compel them to travel to promote tourism development our state, and strengthen our strategic with emphasis on rural Arizona. partnerships throughout the state. In addition, we have identified • Fund a Native American Tourism Survey to provide a baseline for future product nine strategic tasks that will add development decisions that will power to the FY05 program. These strengthen the tourism economy nine initiatives will help ensure that Arizona seizes the position as a top- on tribal lands. • Create a database of cultural of-mind destination for our targeted heritage venues that can be marketed domestic and international visitor. through themed itineraries. Nine initiatives for FY05 Work has already begun. • Expand in-state marketing efforts to encourage more residents to explore the state. 18 AOT_175_5281no copy.indd 18 ARIZONA OFFICE OF TOURISM 3/21/05 5:48:26 PM For more information, please contact: Arizona Office of Tourism 1110 W. Washington, Suite 155 • Phoenix, AZ 85007 602/364.3700 19 AOT_175_5281no copy.indd 19 3/21/05 5:48:27 PM