Frequently Asked Questions
Why is the Partnership for Florida’s Tourism asking for additional public funding for VISIT FLORIDA?
To stay competitive in the global market place and ensure increased economic revenues, the Partnership for Florida’s Tourism, comprised of more than 230 tourism leaders statewide, is requesting additional public funding for VISIT FLORIDA. The Partnership is committed to advocating for a stronger tourism industry.
Where is the increased public funding coming from?
The Partnership for Florida’s Tourism is recommending that the additional public funding come from Florida’s general revenue fund. An investment in Florida’s tourism industry today provides a triple return-on-investment tomorrow. For every dollar invested in VISIT FLORIDA, more than three dollars would be returned in tourism-related tax revenues – paid by visitors, not residents.
How would the additional funding be spent?
The additional public funding will enable VISIT FLORIDA to enhance its marketing program with strength in television, direct marketing, advertising, public relations, promotions, sales and visitor service activities. Most importantly, VISIT FLORIDA will integrate additional network television advertising into its campaign, which has only been previously incorporated on a limited scale due to budget challenges. A year-round presence via national cable advertising is a successful media tactic used by Florida’s competitor destinations to reach key markets.
What is VISIT FLORIDA’S current level of funding, and how does it compare with previous years?
VISIT FLORIDA’s total public funding is $33.35 million for tourism marketing this year.
How does tourism marketing benefit the state’s economy?
In 2006, Florida’s tourism industry generated more than $3.9 billion in sales tax revenues to the state, which contributed to 18 percent of the state’s tax base. These tax revenues represent a primary source of state and local government’s funding that helps to build roads, support schools, pay for health care and other vital programs such as preservation of nature settings.
How would Florida’s economy be affected with a decrease in tourism?
A loss of one percent of the tourism activity in Florida reduces general revenue collections by $37.2 million. This general revenue helps fund Florida’s roads, schools and other public features that benefit Floridians.
What can Floridians expect as a return on investment (ROI) from increased tourism marketing?
With an increase in public funding for tourism marketing, Florida’s presence will significantly increase in the national and international tourism marketplace. Although visitation numbers cannot be guaranteed, past examples show the strong correlation between invested dollars in tourism marketing and revenue generated.
For example, after the economically devastating attacks of September 11, VISIT FLORIDA was awarded $21 million in a one-time allocation by the Florida Legislature to assist in bringing visitors back to the state. Post-program measures demonstrated that for every dollar of the one-time allocation, three dollars were returned through tourism-related tax revenues.
Florida visitation only increased 0.3 percent in 2006 with some quarters in 2006 and 2007 showing a visitation decline. Why have Florida’s tourism numbers fluctuated recently?
Florida visitation recently flattened due to an increase in competitors’ marketing buys and rising advertising costs, which are weakening Florida’s marketing message in an increasingly competitive tourism marketplace. Media inflation is draining the power of VISIT FLORIDA’s resources.
How does Florida compare with other states in regard to public funding of tourism?
The Sunshine State lags behind Hawaii, Illinois, Pennsylvania and Texas for public funding of tourism marketing. Colorado, Oregon, California and Utah have all received triple digit funding increases for tourism marketing in the last two years.
Why is Florida’s overseas market share decreasing?
In 2006, Florida lost 1.2 percentage points in overseas tourism market share due to the increasing marketing expenditures by other countries in the global tourism marketplace. According to the 2006 Nielsen Media Research report, VISIT FLORIDA’s advertising spend of $1.8 million is overshadowed in the United Kingdom by Spain ($11.4 million), Ireland ($9.4 million), Australia ($7.7 million), Turkey ($6.96 million), Cyprus ($3.3 million), Morocco ($3.2 million), Canada ($2.8 million), Egypt ($2.6 million) and more.
Why does VISIT FLORIDA need additional public dollars when private tourism companies in Florida conduct their own advertising campaigns?
VISIT FLORIDA is the umbrella brand that collectively represents the Florida vacation and meeting experience. Regardless of the size of the organization, all VISIT FLORIDA Partners benefit from the collective representation of what Florida offers.
Although large private companies in Florida such as Walt Disney World and SeaWorld conduct their own marketing campaigns, other tourism-related companies in Florida do not have equivalent tourism marketing budgets. These organizations depend on the statewide tourism marketing efforts of VISIT FLORIDA to garner increased visitation and exposure.
What is the private/public partnership of VISIT FLORIDA?
In 1996, Florida became the first state to privatize management of tourism promotion when the state legislature dissolved the Florida Department of Commerce and established VISIT FLORIDA as a not-for-profit organization supported by both private and public funding.
Today, each public dollar is matched by more than three dollars in private contributions. As a result, VISIT FLORIDA requests that the state increase its level of funding to come closer to private sector contributions to create the desired one-to-one match of the state and private sector.