OFFICE OF TRAVEL & TOURISM...SECRETARY OF HOUSING AND ECONOMIC DEVELOPMENT Greg B ialecki...

OFFICE OF TRAVEL & TOURISM

2010 ANNUAL REPORT

SECRETARY OF HOUSING AND ECONOMIC DEVELOPMENTGreg B ialecki

Massachusetts Office of Travel & Tourism

EXECUTIVE DIRECTORBetsy Wall

REPORT DATA

Data in this report are the most current available at the time of publication. Data are based on all travel – domestic and international, leisure and business, unless otherwise specified. Data are reported on a calendar-year basis, unless otherwise specified. A visitor is defined as someone who travels at least 50 miles one way or stays overnight.

TRAVELSTATS

The Massachusetts Office of Travel & Tourism (MOTT) publishes a free monthly research e-newsletter, TravelStats, which com-prises lodging, attractions, and airport data; lodging tax collections; Massachusetts Tourism Fund receipts; and site and circula-tion data for massvacation.com. To subscribe, contact [email protected]. Current and past issues are posted at www.massvacation.com/research.

SECRETARY OF HOUSING AND ECONOMIC DEVELOPMENTGreg Bialecki

Massachusetts Office of Travel & Tourism

EXECUTIVE DIRECTORBetsy Wall

Commonwealth of Massachusetts

GOVERNORDeval L. Patrick

LIEUTENANT GOVERNORTimothy P. Murray

OFFICE OF TRAVEL & TOURISM

2010 A N N UA L R E P O R T

TOP NUUMMMBBBEEEERRRRSSSSMAASSSSAAAACCCHHHHUUUUSSSEEETTTTTTSSS TTTRRRAAAVVEELL IINNDDUUSSTTRR YY BBYYY TTTHHHEEE NNNUUUMMMBBEERRS

2 Office of Travel & Tourism

ECONOMIC IMPACT

Direct spending by domestic and international visitors • totaled $14.4 billion in 2009 (p. 4).

Visitor expenditures supported 121,500 jobs in 2009 and • $3.4 billion in wages and salaries (p. 4).

Visitor expenditures generated $915.3 million in • Massachusetts state and local tax revenue in 2009 (p. 4).

Each dollar spent by a visitor in 2009 generated 4.0 cents in • state tax receipts and 2.4 cents in local taxes (p. 4).

State hotel room occupancy tax collections totaled • $152.2 million in FY2010 (p. 6).

VISITOR ORIGIN

In FY2010, Massachusetts hosted 16.7 million domestic • visitors. In CY2009, there were 1.9 million international visitors; 1.3 million came from overseas and645,000 from Canada (p. 10).

Domestic visitors accounted for approximately 90% of all • visitors; international visitors, 10% (p. 10).

DOMESTIC & INTERNATIONAL VISITORS

In FY2010, 55.0% percent of all person trips originated in New • England and 22.3% from the mid-Atlantic states (NY, NJ, and PA) (p. 12).

Visiting friends and relatives is the most frequently reported • primary trip purpose (45.9%) (p. 13).

Travel by personal car is the dominant mode of transporta-• tion (66.3%) (p. 13).

46.9% of the domestic visitors who spent at least one night • in Massachusetts reported staying in a hotel, motel, or bed and breakfast (p. 13).

Canada, the United Kingdom, and Germany are the top • three countries of origin and accounted for more than 49% of all international visitors in 2009 (p. 26).

BRAND ADVERTISING ROI

MOTT’s FY2009 brand campaign generated $23.9 million in • incremental visitor expenditures (p. 17).

For every dollar spent onthe FY2009 brand campaign, Massa-• chusetts received $14.62 in direct travel expenditures and $1.00 in state and local tax revenues (p. 17).

2007 Annual Report 3

CONTENTS

MASSACHUSETTS TRAVEL INDUSTRY BY THE NUMBERS

Economic Impact 4–5

Room Occupancy Taxes 6

Spending by Industry Sector 7–9

Visitor Volume 10

Domestic Visitor Economic Impact By County 11

Domestic Visitor Origin 12

Domestic Visitor Behavior 13

MOTT DOMESTIC MARKETING PROGRAMS AND RESULTS

MOTT Mission 14

Domestic Marketing Programs & Results 14–15

Brand Campaign 16–19

LGBT Marketing Program 20

Group Tour 20

Mass99 20

Free-Standing Newspaper Inserts 21

massvacation.com 21-22

Governors Conference 23

FARM Fulfillment & Relationship Marketing 23

Public Relations 23–24

MOTT International Overview 25–26

MOTT Regional Grant Program 27

*NOTE: Disregard 2007 heading at the bottom of all odd pages.

MASSAACCHHHHUUUSSSSEEEETTTTTTTSSS 22200011100 AAANNNNNUUAALLL RRREEPPOORRTTPUUBBLLLIIISSSHHHHEEEEDDDD MMMAAARRRCCCHHH 22200011111


Direct expenditures by domestic and international visitors to Massachusetts totaled $14.4 billion in 2009, a 7.9% decrease from 2008 and a 4.3% increase over 2005.

Massachusetts’ 2009 direct expenditures represented a 2.0% share of all U.S. direct expenditures ($704.4 billion).

Domestic visitors spent $12.4 billion in 2009, 86.5% of all spending; international visitors, $1.9 billion, 13.5%. An analysis of spending by industry sectors shows major differences between domestic and international visitors’ spending behavior.

In 2009, domestic spending declined 8.3%; international decreased by 5.1%.

Visitor spending supported 121,500 full-time, part-time, and seasonal jobs, a decrease of 5.6% from 2008, and payroll of $3.4 billion, a 6.6% decrease.

The state received $573.8 million in revenues through the state sales tax, excise taxes, and taxes on travel-related personal and corporate income, a 4.1% decrease from 2008. Local community revenue totaled $341.5 million in sales and property tax revenue, a 6.3% decrease.

Direct Economic Impact of Travel on Massachusetts, 2005 – 2009

CalendarYear

Expenditures($ Millions)

Payroll($ Millions) Employment

State Tax Receipts

($ Millions)

Local Tax Receipts

($ Millions)

2009 14,352.6 3,407.5 121,500 573.8 341.5

2008 15,576.8 3,650.1 128,800 598.1 364.6

2007 15,144.6 3,582.8 127,800 588.0 355.4

2006 14,211.3 3,381.6 125,800 554.2 333.0

2005 13,080.0 3,265.9 125,200 524.1 309.2

Source: TIA, The Economic Impact of Travel on MA Counties, 2009

1

Domestic and International Direct Expenditures by Industry Sector, 2009

2009 EXPENDITURESDOMESTIC

($ MILLIONS)INTERNATIONAL

($ MILLIONS)TOTAL

($ MILLIONS) % OF TOTAL

Public Transportation 3,893.3 237.8 4,131.1 28.8%

Auto Transportation 1,811.9 26.6 1,838.4 12.8%

Lodging 2,467.5 628.0 3,095.5 21.6%

Foodservice 2,601.6 379.3 2,980.9 20.8%

Entertainment & Recreation 791.2 164.0 955.2 6.7%

General Retail Trade 853.7 497.8 1,351.5 9.4%

2009 Totals $12,419.2 $1,933.5 $14,352.6 100.0%

Percentage of total 86.5% 13.5% 100.0%

2008 Totals $13,539.5 $2,037.3 $15,576.8

Percentage of total 86.9% 13.1% 100.0%

1 Source: TIA, The Economic Impact of Travel on MA Counties, 2009

ECONOOMMMIICCC IIIIMMMMPPPAAACCCTTTMAASSSSAAAACCCHHHHUUUUSSSEEETTTTTTSSS TTTRRRAAAVVEELL IINNDDUUSSTTRR YY BBYYY TTTHHHEEE NNNUUUMMMBBEERRS


THE MULTIPLIER IMPACT

Visitors’ direct expenditures have a multiplier impact on the Massachusetts economy through indirect and induced spending. Indirect spending results from Massachusetts’ travel-related businesses purchasing goods and services within Massachusetts. Induced spending results from

employees of travel-related businesses spending part of their income in MA. This multiplier impact is measured for expendi-tures, earnings, and employment. In 2009, the total impact of all travel spending was $22.9 billion, a 7.1% decrease from 2008.

Multiplier Impact of Direct Spending, 2009

Impact Measure Direct Impact Indirect & Induced Impact Total Impact % change over 2008

Economic Impact (millions) $14,352.6 $8,572.8 $22,925.4 -7.1%

Earnings (millions) $3,407.5 $3,074.6 $6,482.1 -6.9%

Employment (thousands) 121.5 77.6 199.1 -6.4%

Indirect impact — travel industry operators purchasing goods and services in MA

Induced impact — employees of businesses and suppliers spending part of their earnings in MA


ECONOOMMMIICCC IIIIMMMMPPPAAACCCTTTMAASSSSAAAACCCHHHHUUUUSSSEEETTTTTTSSS TTTRRRAAAVVEELL IINNDDUUSSTTRR YY BBYYY TTTHHHEEE NNNUUUMMMBBEERRS


In FY2010, state room occupancy tax collections (including convention centers) totaled $152.2 million, a 5.4% decrease from FY2009 and a 5.1% increase over FY2006. Local room occupancy tax collections totaled $102.4 million, a 14.0% increase over FY2009 and a 25.5% increase over FY2006.

In FY2009, Suffolk, Middlesex, and Barnstable counties were the top three room occupancy tax-producing counties, accounting for 72.3% of state and 72.7% of local option room occupancy tax collections. On 10/1/2009 the local option rooms tax rate was increased from a maximum of 4% to 6%.

Room occupancy tax collections are driven by the overall performance of the lodging sector. In CY2010, Massachusetts’ lodging industry outperformed the U.S., according to Smith Travel Research. In CY2010 Massachusetts’ room occupancy was up 9.2% compared to the national rate which increased by only 5.7%.

Room Occupancy Tax Collections by County, FY2009

County State Collections($000) Share % Local Option Collections

($000) Share %

Barnstable $10,574 9.7% $8,718 9.7%

Berkshire $3,355 3.1% $2,706 3.0%

Bristol $2,082 1.9% $1,579 1.8%

Dukes $1,500 1.4% $1,213 1.4%

Essex $5,091 4.7% $4,122 4.6%

Franklin $360 0.3% $261 0.3%

Hampden $2,748 2.5% $2,209 2.5%

Hampshire $1,045 1.0% $856 1.0%

Middlesex $23,150 21.1% $19,076 21.2%

Nantucket $1,438 1.3% $1,186 1.3%

Norfolk $6,214 5.7% $5,080 5.7%

Plymouth $1,860 1.7% $1,512 1.7%

Suff olk $45,390 41.5% $37,511 41.8%

Worcester $4,651 4.2% $3,786 4.2%

Total FY2009 109,458 100.0% 89,815 100.0%

Total FY2008 119,137 96,854Source MA DOR

Room Occupancy Tax Collections, FY2006 – 2010

Fiscal YearState

$ Millions%

ChangeLocal Option

$ Millions%

Change

2010 152.2 -5.4% 102.4 14.0%

2009 160.9 -7.6% 89.8 -7.3%

2008 174.2 10.6% 96.9 9.6%

2007 157.5 8.8% 88.3 8.2%

2006 144.8 8.5% 81.6 8.1%

Source MA DOR (state totals include convention center collections)

ROOM OOCCCCCCCUUUUPPPPAAANNNCCCYYY TTTAAXXEEESSMAASSSSAAAACCCHHHHUUUUSSSEEETTTTTTSSS TTTRRRAAAVVEELL IINNDDUUSSTTRR YY BBYYY TTTHHHEEE NNNUUUMMMBBEERRS

CY2010 vs. CY2009

Supply Occupancy Room Rate Revenue

US 2.0 5.7 -0.1 7.6

MA -.02 9.2 2.1 11.1

NJ 0.9 7.4 -2.0 6.1

NY 2.9 5.43 6.1 15.1

PA 2.6 6.6 -.09 8.4

Source MA DOR (state totals include convention center collections)


In 2009, the largest share of visitors’ direct expenditures was for public transportation, followed by lodging and food service. The lodging sector generated the largest payroll of any category; food service generated the most jobs.

Expenditures, Payroll, & Employment by Industry Sector, 2009

Industry Sector Expenditures($ Millions)

%Share

Payroll($ Millions)

%Share Employment %

Share

Public Transportation 4,131.1 28.8% 575.0 16.9% 13,800 11.4%

Auto Transportation 1,838.4 12.8% 126.3 3.7% 3,900 3.2%

Lodging 3,095.5 21.6% 848.3 24.9% 28,400 23.4%

Foodservice 2,980.9 20.8% 833.9 24.5% 46,000 37.9%

Entertainment & Rec 955.2 6.7% 473.4 13.9% 16,600 13.7%

Retail 1,351.5 9.4% 194.8 5.7% 7,500 6.2%

Travel Planning n/a n/a 355.9 10.4% 5,300 4.4%

14,352.6 100.0% 3,407.5 100.0% 121,500 100.0%

Note: Travel Planning does not generate expenditure data


PUBLIC TRANSPORTATION

Spending in 2009 for public transportation totaled $4.1 billion, an 11.8% decrease from 2008 and a 2.0% increase over 2005.

Public transportation accounted for 28.8% of all expenditures, 16.9% of payroll, and 11.4% of employment.

The public transportation industry comprises air, intercity bus, rail, boat and ship, and taxicab and limousine services.

Public Transportation Industry: Economic Impact, 2005 – 2009

Calendar Year Expenditures($ Millions)


2009 4,131.1 575.0 13,800

2008 4,684.3 598.5 14,800

2007 4,624.8 621.6 14,900

2006 4,385.0 574.5 14,500

2005 4,048.6 576.5 14,800


SPENDIINNGGGG BBBBYYYY IIINNNDDDUUUSSSTTTRR YY SSEECCCTTOORRRMAASSSSAAAACCCHHHHUUUUSSSEEETTTTTTSSS TTTRRRAAAVVEELL IINNDDUUSSTTRR YY BBYYY TTTHHHEEE NNNUUUMMMBBEERRS


LODGING

Spending in 2009 for lodging totaled $3.1 billion, a 13.1% decrease from 2008 and a 7.7% increase over 2005.

The lodging industry represented 21.6% of all expenditures. It generated the largest share of payroll, 24.9%, and the second largest share of employment, 23.4%.

The lodging industry comprises hotels and motels, inns, resorts, campgrounds, and ownership or rental of vacation and second homes.

FOOD SERVICE

Spending in 2009 for food service totaled $3.0 billion, un-changed from 2008 and an increase of 17.9% over 2005.

Food service accounted for 20.8% of total expenditures. It generated the second-highest share of payroll, 24.5%, and the largest share of employment, 37.8%.

The labor-intensiveness of the food service sector and the large share of visitor expenditures spent on food results in this sector’s major contribution to the travel industry’s economic impact and to employment.

Food service comprises restaurants, other eating and drinking establishments, and grocery stores.

AUTO TRANSPORTATION

Spending in 2009 for auto transportation totaled $1.8 billion, a decrease of 10.1% from 2008 and an increase of 8.2% over 2005.

Auto transportation accounted for 12.8% of all expenditures, 3.5% of payroll, and 3.1% of employment.

Auto transportation comprises privately owned vehicles used for trips (i.e., automobiles, trucks, campers, and other recre-ational vehicles), gasoline service stations, and auto rentals.

Lodging Industry: Economic Impact, 2005 – 2009



2009 3,095.5 848.3 28,400

2008 3,564.0 938.3 30,900

2007 3,498.5 910.7 30,300

2006 3,215.8 852.5 29,800

2005 2,874.6 815.1 29,700


Food Service Industry: Economic Impact, 2005 – 2009



2009 2,980.9 833.9 46,000

2008 2,981.3 856.3 47,300

2007 2,876.0 832.7 47,100

2006 2,700.6 791.9 46,100

2005 2,528.3 757.5 45,400


Auto Transportation Industry: Economic Impact, 2005 – 2009



2009 1,838.4 126.3 3,900

2008 2,045.8 128.0 4,000

2007 1,933.3 129.6 4,100

2006 1,824.1 127.8 4,200

2005 1,699.8 126.1 4,200


SPENDIINNGGGG BBBBYYYY IIINNNDDDUUUSSSTTTRR YY SSEECCCTTOORRRMAASSSSAAAACCCHHHHUUUUSSSEEETTTTTTSSS TTTRRRAAAVVEELL IINNDDUUSSTTRR YY BBYYY TTTHHHEEE NNNUUUMMMBBEERRS


ENTERTAINMENT & RECREATION

Spending in 2009 for entertainment & recreation totaled $955.2 million, down slightly from 2008 and an increase of 18.6% over 2005.

Entertainment & recreation accounted for 6.7% of all expenditures, 13.9% of payroll, and 13.7% of employment.

Entertainment & recreation comprises user fees, sporting events, admissions at amusement parks, and attendance at movies.

RETAIL

Spending in 2009 for general retail totaled $1.4 billion, an increase of 0.4% over 2008 and an increase of 20.3% over 2005.

General retail accounted for 8.6% of all expenditures, 5.3% of payroll, and 6% of employment.

General retail comprises gifts, clothes, souvenirs, and other incidental retail purchases.

TRAVEL PLANNING

In 2009, travel planning accounted for 12.0% of payroll and 4.3% of employment. This sector does not generate direct expenditures in Massachusetts because the expenditures take place in visitors’ points of origin.

Travel planning comprises travel agents, tour operators, and others involved in planning trips.

Travel Planning Industry: Economic Impact, 2005 – 2009

Calendar Year Payroll($ Millions) Employment

2009 355.9 5,300

2008 439.1 6,800

2007 418.7 6,600

2006 400.0 6,700

2005 367.0 6,900


Retail Industry: Economic Impact, 2005 – 2009



2009 1,351.5 192.9 7,700

2008 1,345.5 193.6 7,700

2007 1,293.9 191.2 7,700

2006 1,216.8 181.4 7,600

2005 1,123.5 191.0 7,600


Entertainment & Recreation Industry:Economic Impact, 2005 – 2009



2009 955.2 473.4 16,600

2008 955.9 496.3 17,300

2007 918.0 478.2 17,000

2006 868.9 453.6 16,800

2005 805.2 432.8 16,500


MAASSSSAAAACCCHHHHUUUUSSSEEETTTTTTSSS TTTRRRAAAVVEELL IINNDDUUSSTTRR YY BBYYY TTTHHHEEE NNNUUUMMMBBEERRS


Massachusetts hosted 16.7 million domestic person trips in FY2010. See the chart of domestic visitor origins for FY2010 on p. 12.

In CY2009, Massachusetts hosted 1.9 million international person trips. 66% of the person trips were from overseas, 34% from Canada.

Massachusetts’ share of all Canadian travel to the U.S. in 2009 stayed the same as 2008 at 3.4%; Massachusetts’ share of overseas travel to the U.S. increased from 5.0% to 5.3% in 2009.

For visitation numbers from top international markets, see p. 26.

VISITORR VVVVOOOOLLLLUUUUMMMEEEMAASSSSAAAACCCHHHHUUUUSSSEEETTTTTTSSS TTTRRRAAAVVEELL IINNDDUUSSTTRR YY BBYYY TTTHHHEEE NNNUUUMMMBBEERRS


In 2009, domestic visitors spent $12.4 billion in direct expen-ditures, a 8.3% decrease from 2008 and an increase of 6.2% over 2005.

Greater Boston - Suffolk, Middlesex, and Norfolk counties - generated 67.9% of all travel expenditures, 60.0% of state tax receipts, and 55.9% of local tax receipts.

.

Greater Boston — Suffolk, Middlesex, and Norfolk counties — generated 68.1% of all travel expenditures, 60.2% of state tax receipts, and 56% of local tax receipts.

Domestic Economic Impact on Massachusetts Counties, 2005-2009

CountyExpenditures

($ Millions)

Payroll

($ Millions)

Employment

(Thousands)

State Tax Receipts

($ Millions)

Local Tax Receipts

($ Millions)

Barnstable $785.18 $212.46 $8.53 $33.20 $45.51

Berkshire 308.96 84.87 3.49 15.50 8.28

Bristol 361.50 79.45 2.92 19.37 6.84

Dukes 104.81 27.78 1.14 4.02 5.94

Essex 634.88 156.99 6.00 34.03 16.08

Franklin 47.26 9.53 0.35 2.69 1.50

Hampden 419.55 92.93 3.17 23.24 8.04

Hampshire 96.16 22.49 0.83 5.22 2.55

Middlesex 1,856.80 520.51 19.21 102.06 47.91

Nantucket 136.85 29.52 0.99 3.99 4.60

Norfolk 791.57 256.65 9.06 42.51 16.81

Plymouth 446.49 95.55 3.61 21.89 19.86

Suffolk 5,781.23 1,206.95 39.83 152.68 103.91

Worcester 647.93 133.81 5.22 34.80 14.01

Statewide 2009 $12,419.16 $2,929.50 104.35 $495.20 $301.84

Statewide 2008 13,539.5 3,150.6 110.9 518.5 323.5

Statewide 2007 13,346.5 3,137.0 111.7 516.9 319.1

Statewide 2006 12,592.2 2,976.0 110.5 489.9 300.4

Statewide 2005 11,691.7 2,883.3 110.5 466.3 280.4


DOMESSTTIICCCC VVVVIIISSSSIIITTTOOORRR EEECCCOONNNOOMMMICC IIIMMMPPPAACCTT BBYY CCCOOOUUNNTTYYMAASSSSAAAACCCHHHHUUUUSSSEEETTTTTTSSS TTTRRRAAAVVEELL IINNDDUUSSTTRR YY BBYYY TTTHHHEEE NNNUUUMMMBBEERRS


In FY2010, visitors from New England and the mid-Atlantic states (NY, NJ, and PA) accounted for 77.3% of all domestic person trips to the state.

The largest source of visitors was Massachusetts residents themselves, 4.9 million person trips, 29.7% of all domestic trips; followed by New York state with 2.4 million person trips, 14.3% of trips; and Connecticut, 1.6 million person trips, 9.3% of trips.

Again, the definition of a visitor is one who travels 50 or more miles one way or who stays overnight.

Domestic Visitor Origin: Top 10 States, FY2010

StatePerson Trips

to MassachusettsShare of all Person Trips

Massachusetts 4,942,000 29.7%

New York 2,381,000 14.3%

Connecticut 1,557,000 9.3%

New Hampshire 820,500 4.9%

New Jersey 771,000 4.6%

Rhode Island 700,500 4.2%

Maine 688,000 4.1%

Florida 578,000 3.5%

Pennsylvania 564,500 3.4%

California 526,000 3.2%

All Other States 2,481,500 14.9%

All New England States 9,157,000 55.0%

All Mid Atlantic States 3,717,000 22.3%

Source: TNS, Travels America, FY2010

DOMESSTTIICCCC VVVVIIISSSSIIITTTOOORRR OOORRIIGGIIINNMAASSSSAAAACCCHHHHUUUUSSSEEETTTTTTSSS TTTRRRAAAVVEELL IINNDDUUSSTTRR YY BBYYY TTTHHHEEE NNNUUUMMMBBEERRS


DOMESTIC TRIP DURATION & COMPOSITION

Just under 2/3 of all person trips in FY2010 included an overnight stay. Overnight visitors averaged 3.3 nights in Massachusetts. All visitors — overnights and those on day trips — averaged 2.1 nights.

22.7% of all travel parties included one or more children less than 18 years of age.

DOMESTIC TRANSPORTATION MODE

The majority of visitors, 66.3%, drive their own vehicle to Massachusetts. Air travel ranks second at 20.1%.

DOMESTIC LODGING

46.9% of overnight visitors stay in a hotel/motel/inn or B&B, 42.2% in a private home.

DOMESTIC TRIP PURPOSE (PRIMARY)

Visiting friends or relatives is the dominant trip purpose and accounts for 45.9% of all domestic trips. Business and conven-tion/seminar travel accounts for 13.5% of all trips.

DOMESTIC TRIP ACTIVITIES

Attendance at a social or family event is the most frequently reported trip activity by domestic visitors, 27.1%, followed by shopping, 17.7%. Fine dining, beaches, rural sightseeing, historical places/museums, and urban sightseeing follow in rank order.

Domestic Visitor Primary Trip Purpose, FY2010

Visit Friends/Relatives 45.9%

Personal 14.8%

Entertainment/Sightseeing 12.4%

Business 9.9%

Outdoor Recreation 5.9%

Combined Business/Leisure 9.9%

Convention/Seminar 3.6%


Domestic Visitor Top 10 Activities: FY2010

Attend Family/Social Event 27.1%

Shopping 17.7%

Fine Dining 15.1%

Beaches 11.8%

Rural Sightseeing 14.3%

Historical Places/Churches 11.3%

Museums 9.3%

Urban Sightseeing 13.0%

State/National Parks 6.6%

Art Galleries 3.7%


Domestic Visitor Transportation Mode, FY2010

Own Auto/Truck 66.3%

Airplane 20.1%

Rental Car 3.7%

Camper/RV 0.6%

Train 2.1%

Bus 3.1%

Ship/Boat 1.1%

Motorcoach 0.4%


AAVVVIIOOORR,, FFFYYY222001100MAASSSSSSAAAACCCHHHHUUUUSSSEEETTTTTTSSS TTTRRRAAAVVEELL IINNDDUUSSTTRR YY BBYYY TTTHHHEE NNNUUUMMMBBEERRS

Overnight Domestic Visitor Lodging, FY2010

Hotel/Motel/Inn 45.1%

Private Home 42.2%

Condo/Timeshare 4.0%

RV/Tent 2.6%

Bed & Breakfast 1.8%

Other 4.5%


MMOOTTTT DDOMESTIC MARKETING PPRROOGGRRAAMMSS AANNNDDD RRREEESSSUUULLLTTTSSS


MOTT MISSION

MOTT is the state agency dedicated to promoting Massachu-setts as a leisure travel destination in order to stimulate theMassachusetts economy by generating state and local taxrevenues, creating jobs, and supporting the growth of

travel-related businesses.

DOMESTIC MARKETING OVERVIEW

MOTT’s domestic marketing programs focus on generating overnight leisure travel by consumers in selected media markets within Boston, New England and New York. Research is used extensively to determine best customer prospects, markets, campaign timing, messages and collateral materials. It’s also used to evaluate results. Advertising spending is focused heavily on the spring and summer seasons; second-ary marketing programs; promotional activity cover the winter and fall seasons; and public relations is used year-round to help keep MOTT’s messaging in the marketplace.

MOTT’s marketing programs are fully integrated with a mix of broad-based media—television, radio, print, online and newspaper—and direct mail and email components that target existing customers.

FY2010 DOMESTIC MARKETING PROGRAMS

MOTT’s programs are research driven and targeted at best customer prospects and are rigorously evaluated both during and post program. All marketing programs target Massachu-setts’ best customer prospects: 35-64 years old with a house-hold income of $75,000+. Media is skewed toward women, who have a greater propensity to plan and make travel decisions. In FY10, we allocated 70% of media budget to TV (broadcast and cable) and reduced print expenditures which were reallocated to online/search. (see media table on page 15)

• Television

• Radio

• Online Advertising Campaign

• www.massvacation.com

• Public Relations

• Targeted Consumer Outreach

• Social Media: Facebook, Twitter

• Massachusetts Lure Brochure

• Niche Programming:

� MA Green

� LGBT

� Small Meetings

� Multicultural

� Weddings

� Disability

Massachusetts Market Share From Target DMAs

DMADMATotal Visitors from DMA

(000)

Visitors from DMA to MA

(000)

MA Market Share

New York City DMA 56,005 2,490 4.4%

Hartford/New Haven DMA 8,406 1,314 15.6%

Albany/Troy DMA 5,488 578 10.5%

Providence/New Bedford DMA 5,137 1,280 24.9%

Boston DMA 20,507 4,251 20.7%

Springfield/Holyoke DMA 2,091 628 30.0%

Source: TNS FY2010



Domestic Marketing Budget

Marketing, collateral, and research FY10: $5.1m FY09: $5.2m

Public relations FY10: $0.21m FY09: $0.31m

Total FY10: $5.31m FY09: $5.51m

Media

FY10 FY09

Net media $ 3.4m $ 4.6m

Allocation by market

New York DMA 52% 50%

Hartford/New Haven DMA 2% 7%

Massachusetts 15% 36%

Albany, Portland & Providence DMA 4% 4%

Other 27% 3%

Allocation by media

TV 70% 62% (25% cable/75% spot)

Radio 1% 7%

Print 15% 18%

Online 14% 11%

Other 2%



BRAND CAMPAIGN

FY10 AT A GLANCE

Tagline: It’s All Here• ®

Markets: Massachusetts , New York, Hartford, Providence , • Albany and Portland.

Schedule: mid-April to mid-June 2010•

Television: Two spots were created using a pick-up from the • 2009 ‘Colors of Massachusetts’ TV campaign. The :30- and :15-second, spots were repurposed to include a newly-creat-ed voice over messaging which replaced the big band musical track from 2009.

Spots ran for 8 weeks: 5 weeks on, 1 week off, 3 weeks on. •

The two TV spots aired on broadcast and cable in Boston, • NY, Hartford, Albany, Portland and Providence DMAs. Programs included early-morning fixed positioning on GoodMorning America, the Today show, Red Sox games, New England Cable News, and top-rated shows — Desper-ate Housewives, Dancing with the Stars, Grey’s Anatomy, LOST, and Law & Order among others.

Print: Three full-page and one 1/3-page were refreshed as a • pick-up from the 2009 ‘Colors of Massachusetts’ campaign and executions ran in the following publications: Budget Travel, Travel & Leisure, NY Magazine, Arrive/Amtrak, Globe Magazine, Endless Vacation, Boston Magazine, New England Travel, AAA Car & Travel (NY), Yankee Magazine.

Radio, newspaper, and TV contests and sweepstakes were • used as added-value media opportunities.



FY09 RESULTS

An independent advertising effectiveness and return on investment (ROI) study showed the 2009 brand campaign generated awareness levels of 39% of the New York DMA’s target consumers, 37% in the Hartford DMA, and 49% in Massachusetts. Overall, the campaign generated $23.9 million in incremental spending from all these markets. The total cost of the brand campaign was $3.1 million. The three- year average ROI is $14.62 in direct spending and $1.00 in state and local taxes for every dollar spent on the cam-paign.



“THE COLORS OF MASSACHUSETTS” BRAND CAMPAIGN

The brand campaign focused on generating spring and summer travel by Massachusetts’ best customer prospects. The 2010 pick-up of the 2009 ‘Colors of Massachusetts’ TV campaign focused on transcending the entire state via a ‘primary color wheel’ which identified and equated various colors within various regions in the state, for example: Green: the Berkshire Hills, the Green Monster at Fenway Park; Red: a red lobster, the Freedom Trail, the color of cranberries, Blue: the color of the ocean, picturesque fishing ports. Our call-to-action tagline was: “Take a closer look at all of the Colors of a Massachusetts Getaway”.

TELEVISION

For the ‘Colors of Massachusetts’ campaign, two 30-second television commercials were economically produced using a mix of recycled footage from the 2008 advertising campaign, [“A new commercial Every Day for 90 Days”] and still photography, then mixed with 3D animation elements in Autodesk Maya. It was set to the ‘Big Band’ sounds of “There’s a Rainbow ‘Round My Shoulder” recorded in 1994 by The Brian Setzer Orchestra [from the film “The Singing Fool”, 1928, written by: Dave Dreyer, Al Jolson, Billy Rose]. The primary call-to-action was to send customers to www.massvacation.com to plan a getaway. All online transactions resulted in new or updated records in MOTT’s customer Fulfillment and Relationship Management [FARM] database.

.



PRINT

For print, three full-page magazine ads were developed with copy stating that Massachusetts is Blue, Red, and Green and following in the same color theme as TV. Also, a fourth ad, 1/3-page, was used in tandem opposing the the full-page buy and mixed all colors together encouraging viewers to Take a Closer Look At All of the Colors of a Massachusetts Getaway”.

massvaca t i on . comcomco

massvaca t i on . comcomco

massvaca t i on . comcomcomassvaca t i on . comcocom



LGBT MARKETING PROGRAM

In CY2010, MOTT launched a new marriage resource micro-site geared towards the LGBT community. The site contains information about how to get married in the Commonwealth of Massachusetts and simplifies the process for both residents and non-residents. In addition, the LGBT Facebook page had nearly 13,000 fans and the LGBT Twitter account surpassed 1,000 followers. The LGBT site had 80,618 visits and 186,890 page views in CY2010.

GROUP TOUR

MOTT markets Massachusetts year round as a group travel destination, working proactively with tour operators and travel agents.

Group Tradeshows:

• Attended, maintained and created new relationships with tour operators as well as generating leads for the Massachusetts travel industry. Massachusetts (MOTT) attended American Bus Association Marketplace, Alliance Military Reunion and Cruise Canada New England Sympo-sium.

Group Travel Advertising

• MOTT advertising can be found in Teach & Travel (SYTA publication), Packaged Travel Insider, Destinations, Courier, Black Meetings & Tourism and New England Group Travel Planner

Group Travel Promotions

• Massachusetts participated in the National Tour Association Tour Operator Profile Book.• MOTT participated in welcoming the National Association of Motorcoach Operators during their annual meeting in Massachusetts.• MOTT partnered with the Massachusetts Depart-ment of Agricultural Resources, hosting a Savor Massachu-setts Culinary Farm Tour.• MOTT collaborated with Regional Tourism Councils and other New England state tourism offices on joint group

tour programs.

GOALS

Consistently educate domestic tour operators and travel agents on the newest Massachusetts product and position Massachusetts as a top group tour destination.

RESULTS

In FY2010, the Massachusetts group tour program generated over 100 qualified leads from new and current tour operators who actively book groups to Massachusetts.

MASS99

In the spring of 2010, MOTT introduced MASS99, a seasonal savings program designed to highlight the many attractions and events in Massachusetts by offering the consumer a package deal for a fixed $99 rate. The package deals repre-sented at least a 20% savings from regular rates, thereby giving consumers a high level of value. The program’s appeal was to families and smaller groups, so packages included tick-ets, gift shop, meal vouchers and goods/services in a variety of choices. Participants were innovative in the packages they developed which might have included: 4 tickets/4 meal vouchers/4 T-shirts for $99. As well, this program sparked great collaboration between businesses in developing unique and creative packaging together. To induce overnight stays, hotels were also encouraged to participate by offering a reduction to their rack rates.

RESULTS

The introductory spring version ran from April 19 to June 27, 2010 and yielded 44 MASS99 attractions packages with 81 participating hotels. MASS99 was repeated in the summer from July 21 to September 30, 2010 and yielded 33 MASS99 attractions packages with 85 participating hotels. There were 1,885 downloads of the Summer MASS99 coupon. In total, 22,409 emails were garnered and these consumer emails were then folded into MOTT’s consumer database for future correspondence.



Free-Standing Newspaper Inserts (FSIs)

MOTT partnered with Madden Media and provided financial support to the tourism industry to produce a spring free-standing newspaper insert, [FSI] which published on Sunday, May 2, 2010. This FSI provided Massachusetts destinations, attractions, lodging establishments, restaurants, and retailers with the opportunity to buy advertorial space and/or a brochure directory listing at below-market rates. The 12-page, four-color FSI was inserted in major newspapers in MOTT’s target markets, New York, Connecticut, Massachusetts, Maine, New Jersey, and Rhode Island, with a total circulation of 900,000 and 2.7 readership. An online component was added which included an eZine [electronic magazine] and four months of online marketing on www.vacationfun.com. Sales leads were generated from both the FSI and the online component.

RESULTS

The spring 2010 FSI featured 58 advertisers and generated 418,033 responses for more information, or sales leads, [combined web and FSI coupon] and yielded 11,200 click-throughs from www.vacationfun.com. Newspaper sales leads ranking was: Massachusetts, 31% of circ., New York, 30% of circ., Connecticut, 19% of circ., New Jersey, 10% of circ., Rhode Island, 8% of circ., Maine, 3% of circ.

massvacation.com

MOTT operates a highly interactive Web site, massvacation.com, that provides users with comprehensive information about what to see and do, where to stay, and how to plan a trip. Also in CY10, for the first time, MOTT had seasonal micro sites for fall foliage and winter fun which generated high seasonal traffic. Other content:

Information centers•

Events up to 24 months in advance•

Mapping and travel directions•

Special lodging deals•

Special offers from MOTT’s marketing partners•

Order form for travel information from RTCs and Chambers • of Commerce

Links to attractions, hotels, regional tourism councils, and • other travel sites

Ongoing contest to win a Massachusetts getaway •

Press Room•

MAY 9, 2010Annual Duckling DayParade, Boston Common

JULY 9 – 11, 2010NE Sand SculptingInvitational, Mashpee

JUNE 5, 201031st Annual CambridgeRiver Festival

Massachusetts moments start at www.massvacation.com

•Find the best deals, great getaway ideas, special offers, up-to-the-minute event listings andseasonal promotions

•Search by city, region, or statewide

•More than 5,000 lodging, attractions, restaurants, retail, and events withGoogle travel directions

•Themed getaway ideas for Family Fun, Romance,Adventure, Art & Culture,Science & Nature, Sports & Outdoor Activities

•Links to our LGBT microsite and other helpful travel sites

•Order free maps andstatewide travel info

•Enter our ‘Win AMassachusetts Getaway’sweepstakes

•Join our email club

Borderland State Park, Sharon/Mansfield/North Easton



RESULTS

In 2010, the site hosted 952,880 visits (a 3% decrease from 2009) which resulted in more than 4.5 million page views. 86% of users were U.S. residents. The next fi ve top countries of origin were Canada, the U.K., Germany, Italy, and France. The most visited topical pages viewed after the Homepage were 50 Under $50, Fall Foliage and Mass99. The top regions visited, in order, were Cape and the Islands, Greater Boston, Western Mass, North of Boston, and South of Boston.



FARM FULFILLMENT AND RELATIONSHIP MARKETING

Throughout 2010 MOTT continued to increase FARM, our consumer Fulfillment and Relationship Marketing database. This database is used to support the seasonal promotions, and direct mail programs. The primary source for acquiring new FARM customers and for updating existing customer records is via www.massvacation.com. FARM complies with CAN-SPAM best practices.

RESULTS

At the end of 2010 the number of consumer records in FARM totaled 960,223. Of these, 284,326 were permission emails. 88.3% of the total records are U.S customers. 5.5% are Canadian and 6.2% represent all other countries.

GOVERNOR’S CONFERENCE

MOTT hosts the annual Governor’s Conference on Travel & Tourism. Now in its 23rd year, the conference attracts more than 400 industry professionals who convene for networking with their colleagues from across the Commonwealth’s travel sector. The conference features a Keynote by the Governor and presentations by other administrative leaders. The conference includes panel discussions, workshops and an industry marketplace with relevant information and tools for tourism professionals.

PUBLIC RELATIONS

MOTT’s public relations program aims to promote the Commonwealth as a premier leisure destination, rich in culture and diversity. The majority of the program’s focus is on media relations, gaining valuable third-party endorsements from respected travel press, and in turn, influencing consum-er behavior when it comes to visiting Massachusetts

As a result of MOTT’s public relations efforts, Massachusetts has enjoyed positive coverage in the nation’s top circulating publications, regional newspapers and magazines and online travel and lifestyle sites.

JOURNALISTS TO MASSACHUSETTS

MOTT works closely with Massachusetts’ lodging facilities and attractions to stay up-to-date on their services and special events, in order to serve as an information resource to journalists wishing to visit the state. Working personally and directly with journalists, MOTT packages tours throughout the commonwealth for coverage on line, in print and on the radio.

Through the efforts of MOTT’s public relations team, journal-ists representing the following publications visited the Commonwealth in CY2010:

AAA New EnglandAbout.com Guide to New England for VisitorsAmerican SpaBoston CourantBoston GlobeBoston HeraldBoston MagazineBoston MetroConnecticut Magazine Country LivingDestinations of the WorldEdge PublicationsExecutive Profi leExhale MagazineFamily.com



Gayot.comHartford CourantImproper BostonianInside ReelInstinct MagazineJourney MagazineLawrence Eagle-TribuneNew York PostNY Daily NewsOut & AboutPathfi ndersPhiladelphia Daily NewsSpectrumTaking-the-KidsTime Out NY KidsTravel & LeisureTraveltowellness.comValley Scene MagazineWorldtravelguide.net

LOCAL AND NATIONAL CONSUMER BUSINESS AND TRADE MEDIA RELATIONS

MOTT regularly researches, prepares and distributes press releases that cover a wide range of topics aimed to stimulate media interest. In FY2010, MOTT distributed the following releases:

Seaside Autumn Excapes

From Haunts to Harvest

Massachusetts Latin Vibe

Iconic Thanksgiving

Holiday Massachusetts

Not Your Average New Years

Taverns & Travelers

Massachusetts Music Scent

State of Green

February School Vacation

April School Vacation Week

The Art of Great Gardens

Seafood & Beer Pairings

MA Pride

Massachusetts WorldFest Promotion

Massachusetts Offers 50 Summer Adventures for Under $50

Making Historic Memories: Family Fun for the Fourth

MASSVACATION.COM PRESS ROOM

In CY2010 MOTT updated its press room with new images, information, press materials, and story ideas. In addition, HD footage is available free of charge to promote the state via broadcast. The press room also posts leads for the entire industry to take advantage of, and get the opportunity to, showcase their properties, attractions or events for interested journalists.

SUPPORT ADVERTISING AND MARKETING PROGRAMS

MOTT’s integrated marketing team launched a new and innovative brand campaign in FY2009. The public relations group promoted the campaign in national and regional trade and consumer press. Coverage appeared in the following press:

Adweek

Boston Herald

WCVB-TV (Ch. 5)

The BostonChannel.com/Boston Globe

Associated Press

Boston Herald

NECN


STRATEGY

To market and promote Massachusetts as a premier travel destination in primary international markets (Canada, United Kingdom, and Germany) and in secondary markets (Ireland, Japan, France, Italy. Exploratory markets include Spain, Argen-tina, and Brazil.

(MOTT contracts with destination marketing agencies in its primary and secondary markets to implement comprehensive promotional programs.

Marketing and public relations activities include, but are not limited to: ongoing proactive travel trade outreach, internation-al travel trade and consumer shows, destination training programs, cooperative marketing with in-market travel partners, familiarization (FAM) tours, media relations, and consumer promotions.

TRAVEL TRADE PROMOTION

MOTT’s travel trade promotion consists of proactive outreach to tour operators whose brochures feature New England and Massachusetts product. MOTT works to secure current product, to expand product offering, to support cooperative opportuni-ties (consumer promotion, direct mail, point of purchase, etc.), and to assist in itinerary development. As needed, MOTT will provide tour operators with videos, promotional items, and literature to support promotion.

MOTT works in partnership with major airlines in each primary and secondary market to develop cooperative promotions.

MEDIA RELATIONS

Media relations conducted in MOTT’s primary and secondary markets generate valuable earned media coverage for the state. MOTT’s in-market agencies provide story ideas, issue press releases, develop/distribute e-newsletters, and respond to image/b-roll requests. In fiscal year 2010, the earned media value totaled $47.6 million.

INDUSTRY PARTICIPATION

Familiarization Tours; Event Information; Thematic ItinerariesNew Product; Imagery; Events/Shows: Governor’s Conference, Pow Wow, Discover New England Summit

I

SOURCE: DEPT. OF COMMERCE, OTTI

MMOOTTTT IINNTERNATIONAL MARKETTSS OOVVEERR VVIIEEWW

International Visits to MA & Share

CY2009Visitor Volume

(000)s

Share of

Country Market

All Overseas 1,259 5.3%

Canada 645 3.4%

United Kingdom 187 4.8%

Germany 110 6.5%

Japan 38 1.3%

Ireland 36 8.7%

France 65 5.4%

Italy 51 6.8%

Netherlands 45 8.3%

Brazil 57 6.4%

Spain 21 3.5%

Argentina 20 5.5%

Sweden 24 7.4%

BELGIUM 16 6.6%


MMOOTTTT IINNTERNATIONAL MARKETTSS OOVVEERR VVIIEEWW

Canada

Marketing Firm: VOX International Inc

Visitation to MA (2009): 645,000 Visitors

Est. Visitor Spending (2009): $323 M

Est. MA State Taxes (2009): $13.1 M

United KingdomMartketing Firm:

Travel & Tourism Marketing


Est. Visitor Spending (2009): $290. M


Germany

Marketing Firm: Buss Consulting




Japan

Marketing Firm: Global Consulting




Ireland

Marketing Firm: Tara Travel Services




France

Marketing Firm: Express Conseil




Italy

Marketing Firm: Thema Nuovi Mondi




REGIONAL TOURIST COUNCILS AND REGIONAL TOURISM GRANT PROGRAM

Massachusetts’ 16 Regional Tourist Councils (RTCs) are independent, membership-based, not-for-profit organiza-tions that market their regions as travel destinations. Each RTC focuses on the travel market segments that generate the greatest economic return for its region: domestic visitors, international visitors, leisure visitors, group travel, meetings, conventions, and sports events. RTCs are funded by member-ship fees, other private-sector revenues sources, and funds from the Regional Grant Program.

The Regional Grant Program was established by statute (Chapter 23A, Section 14) and is managed by MOTT. It provides state funds to each RTC to support its destination marketing programs. The grant program requires that RTCs match their grants with a minimum one-to-one match of nongovernmental funds. Grants are awarded based on a performance-based formula which evaluates the economic impact of RTCs’ efforts (50%), their marketing plans (30%), and their abilities to raise matching funds (20%).

*Note In calendar year 2009 the Travel Industry Association (TIA) became the United States Travel Association (USTA).

MMOOTTTT RREGIONAL GRANT PROGGRRAAMM

RTC FY2011 Grant Allocation Summary

Regional Tourist CouncilFY 2011 Grant

Allocation

Berkshire VB 129,293

SE Mass CVB 62,431

Cape Cod Chamber 225,194

Franklin County Chamber 85,294

Greater Boston CVB 970,533

Merrimack Valley CVB 138,184

Greater Springfield CVB 139,600

Martha's Vineyard Chamber 115,519

Nantucket Chamber 115,645

North of Boston CVB 110,051

Plymouth County CVB 126,877

Central Mass CVB 154,047

Mohawk Trail Association 53,950

METROWEST 24,460

JOHNNYAPPLSEED 24,460

HAMPSHIRE 24,460

TOTAL: 2,500,000

Source: MOTT

Photography Credits:

Cover: Kindra Clineff/MOTT Tim Grafft/MOTT

Page 2: Kindra Clineff/MOTT

Page 5: Kindra Clineff/MOTT, Tim Grafft/MOTT



Page 10: Ritz-Carlton Hotel


Page 12: The Trustees of Reservations

Page 15: Photo courtesy of Beth White

Page 16: Prudential Center

Page 17: Kindra ClineffPhoto Courtesy of Beth White


OFFICE OF TRAVEL & TOURISM...SECRETARY OF HOUSING AND ECONOMIC DEVELOPMENT Greg B ialecki...

Documents

Transcript of OFFICE OF TRAVEL & TOURISM...SECRETARY OF HOUSING AND ECONOMIC DEVELOPMENT Greg B ialecki...