For every dollar spent on tourism marketing, Philadelphia sees $100 in revenue, according to a new study highlighting the long term success of the
Greater Philadelphia Tourism and Marketing Corporation's ad campaigns. The report, released by
Longwoods International, provides dramatic evidence that marketing the city's image is serious business.
But wait, there's more ROI: according to the report, for every dollar spent on advertising, visitor spending created $6 in state taxes and $5 in local municipal taxes, a remarkable ratio of 11:1 in government dollars. Leisure hotel room nights have tripled in Center City, and since 1997, the city welcomes an additional 10 million visitors each year. In 2010, 37 million tourists came not only to see the Liberty Bell and the Rocky statue, but also to sample some of the local cuisine and enjoy the region's arts and culture.
The Power of Destination Marketing, written by Longwoods' CEO Bill Siegel, measures the impact of two tourism efforts in the United States: Pure Michigan and With Love, Philadelphia XOXO. Siegel, who has been charting Philadelphia's tourism marketing since 1995, spent a day in town recently to share the results of his study. "In 1994, Pew commissioned a study to find a replacement industry for job loss," says Siegel, who reports that results of the study pointed to a push for hospitality, something of an intangible in a city formerly known for Stetson hats and Botany 500 suits, among many other world famous manufacturers that closed or relocated in the 20th century.
Philadelphia's tourism marketing budget is between $10-12 million annually, the majority generated by a one percent hotel tax, with other sources that include funding from The Delaware River Port Authority, a regional marketing partnership with the Commonwealth of Pennsylvania, and an assortment of grants. In 2010, tourism was responsible for $8.7 billion in visitor spending here. Siegel says of his findings, "It's an increase that runs against the rest of the nation."
Meryl Levitz, President and CEO of GPTMC, added that the city's post 9/11 campaign, Philly's More Fun When You Sleep Over, was the most successful of any tourism effort in the United States. "Philadelphia does better when times aren't as good." Levitz terms Philadelphia a resilient destination, and credits social media. "In travel, word of mouth is the most important determinant for success," says Levitz, who looks forward to a summer of tourism love, with upcoming events that include
Philly Beer Week in June and the annual
Welcome America celebration in July.
Source: Bill Siegel, Longwoods International; Meryl Levitz, GPTMC
Writer: Sue Spolan