The Tourism Federation of Wisconsin (TFW) is a lobbying coalition of trade and promotional associations and organizations actively involved in Wisconsin's tourism industry. TFW serves as Wisconsin tourism industry's unified voice in government relations, cooperatively seeking to improve Wisconsin's $12 billion tourism industry through supportive legislation and policies.

Learn more about TFW's mission, members, issues and resources through this Web site.

TOURISM TIDBITS

Tourism Expenditures Down in 2009, Economic Recovery and Effective Tourism Promotion Could Make 2010 A
Better Year- 5/09

The Wisconsin Department of Tourism reported this week that travelers spent an estimated $12 billion in Wisconsin during 2009, down nearly 8 percent, or $1 billion, from the prior year. As a result, there were similar percentage decreases in estimated full-time-equivalents jobs, resident income, and taxes and fees paid to Wisconsin governments. Certainly, the economic downturn took a toll on Wisconsin's tourism industry. People had less discretionary money to spend on their vacations. It also didn't help that the state has been cutting the tourism promotion budget significantly during the past year, inviting fewer people to enjoy our attractions, restaurants, lodging facilities and destinations.

But, enough bad news. The economy appears to be gradually recovering and people are starting to travel again. Wisconsin tourism could fare well in this recovery if it capitalizes on such travel trends as closer-to-home vacations and more value-conscious consumers. In addition to offering unique, beautiful and fun places to visit, Wisconsin is ideally situated near the large population bases of Chicago and the Minneapolis/St. Paul and has five million residents. In addition, Wisconsin's tourism product has long been considered to be a good value. It is vital for Wisconsin to take advantage of these trends and properly invest in tourism promotion. Michigan is the most recent example of how tourism promotion plays an important role in increasing tourism and government revenues. The state invested $30 million in a one-time national advertising campaign, about twice as much as it typically budgets for tourism promotion.

A recent study by Longwoods International found that the national Pure Michigan campaign motivated 680,000 new trips to Michigan from outside the Great Lakes region, at a time when travel and tourism was on a decline nationally due to the recession. Those visitors spent $250 million at Michigan businesses last summer as a direct result of the Travel Michigan advertising program. In addition, these new out-of-state visitors paid $17.5 million in state taxes while in Michigan, yielding a $2.23 return on investment for the tourism advertising. There is strong support in Wisconsin for investing in tourism promotion. A recent statewide public opinion survey showed that 93% of Wisconsin voters agree that "tourism is important to the Wisconsin economy and that 89% said "promoting tourism helps strengthen Wisconsin's economy."

Let's listen to our residents and invest more money in tourism promotion. The result will be more people vacationing and spending money in our great state at a time when we need the jobs and tax revenues tourism generates.

Traveler Shopping Is Big Business In WI - 12/09

The holiday shopping season may be in full swing, but visitors to Wisconsin are spending billions of dollars year round as they travel the state. In 2008, travelers spent an estimated $4 billion on shopping expenditures, more than any other travel expenditure category (Source: The Economic Impact of Expenditures by Travelers on Wisconsin Report, 2008). Shopping expenditures made up 30% of overall travel expenditures, followed by food purchases (27%), recreation expenditures (22%) and lodging expenditures(13%).

Destinations across the state report that shopping is a big cash-ringing activity. In Door County, visitors spent an estimated $139 million on shopping last year. Wisconsin Dells estimates that shopping expenditures by travelers was $289 million, or 26% of overal traveler expenditures last year . The Fox Cities, dubbed Wisconsin's Shopping Place, estimates travelers spent $125 million on shopping last year. The area's most popular shopping place, The Fox River Mall, has 16 million guests a year.

Like Wisconsin, shopping is also the most popular popular trip activity for U.S. travelers. The U.S. Travel Association estimates that 34 percent of all person-trips or over 345 million U.S. person-trips include shopping. Shoppers are almost as likely to stay at a hotel, motel, or bed and breakfast establishment (49% of person-trips) as they are with friends or relatives (48%). Overnight shopping trips average 4.8 nights and they spend, on average, $563, excluding the cost of transportation to their destination. Most (81%) shopping travelers say that their most recent trip that included shopping was for leisure purposes. (Source: Domestic Travel Market Report, 2003 Edition and The Shopping Traveler). Across the nation and across Wisconsin, travelers like to "shop'til they drop". And, as they do so, they bring lots of dollars and sales tax revenue to our communities and state.

Tourism Imdustry Strong in 2008, But Economic Downturn and Legislative Proposals Could Dampen Future Growth - 5/09

The Wisconsin Tourism recently reported that travelers spent an estimated $13 billion in Wisconsin during 2008, up nearly 3 percent from the prior year. Those expenditures generated more than 310,000 jobs and $2 billion in state and local taxes. It was a good year. However, continuing that economic success in 2009 could be difficult due to the economic downturn and if certain proposals pending in the Legislature become law.

The Department of Tourism's budget is facing significant cuts as lawmakers try to find ways to make up a $6.6 billion budget deficit. This comes at a time when neighboring states of Illinois and Michigan are spending three times or more on tourism marketing and trying to sway traditional Wisconsin vacationers to their states this summer. Another state budget provision - the joint and several liability cap provision - could significantly raise insurance rates for tourism attractions and businesses plus increase litigation risks during a weak economy. Senate Bill 1, if passed, would increase Wisconsin's minimum wage level above the federal level which is set to increase this July. In addition, it would also increase the minimum wage every year, tied to the consumer price index. This would also place Wisconsin at a competitive disadvantage to its neighboring states. Senate Bill 109 and the companion bill, Assembly Bill 125, could hurt future Wisconsin summer tourism seasons if passed. While there isn't any compelling educational reason to do so, the bills would allow k-12 schools to start school during the prime travel and weather month of August. In 2008, travelers spent $350 million more in August than June.

Like other economic sectors, the Wisconsin tourism industry is facing difficult times. Reports across the state are that leisure and business travel is down. However, the summer travel season has just kicked off and Wisconsin's tourism industry is hopeful that travelers will not scrap their vacations due to the bad economy and instead will take them closer to home. With the metropolitan areas of Chicago and Minneapolis on our door step and millions of potential Wisconsinites vacationing in their home state, we could have a good travel season. Let's hope for a great summer tourism season and that legislative roadblocks will not be placed in the way of making Wisconsin's tourism industry competitive.

September 1 School Start Date Good for Families and Wisconsin's Economy - 3/09

A consistent school start date is in the best interest of Wisconsin families and Wisconsin's economy. The September 1 school start date law has meant more valuable vacation time for familities, more tax revenues for the state and our communities and more employment opportunities for our high school students.

Surveys have shown that parents overwhelmingly support the September 1 school start date. Families want to vacation together and the good weather and warm water makes late August an ideal time for family vacations in Wisconsin. It is a reality of modern family life that the last two weeks of August may present the one-and-only opportunity for families to spend quality time together during a planned-for getaway. Tourism during the last two weeks of August returns added tax revenue to fund schools. In the past two years, travelers spent an estimated $300-350 million more in August than in June statewide, according to the Wisconsin Department of Tourism. The labor pool that also relies on income from these last weeks of August. In many cases, these employees are high school students who will use that income toward their post-high school education.

Public schools in the city of Chicago, Minneapolis and St. Paul typically begin school in September. These areas are strong markets for the Wisconsin Tourism economy in late August and we need to ensure our hospitality industry has the employees to meet this customer demand. Minnesota and Michigan have a post-Labor Day school start date and in fact, the Minnesota State Legislature just defeated a bill in committee that would have repealed that state’s post-Labor Day start. Local school boards and districts still have flexibility to set their school calendar; selecting holiday breaks, staff development days and making up snow days. Some school districts in Wisconsin manage to finish in early June while others finish in mid-June which demonstrates the flexibility each district has.

There is not a justifiable reason for repealing Wisconsin's September 1 school start date. There is no evidence that it has impacted student performance and it would lead to less revenue for Wisconsin businesses and less income for employees already hurting from the economic recession.

Spending Local Room Tax Revenue Correctly Can Bring Economic Boost to WI Communities - 2/09

According to a recent report by the Wisconsin Taxpayers Alliance, 225 Wisconsin municipalities collected a room tax paid by travelers staying overnight at lodging properties throughout our state in 2006. In that year, the tax generated more than $60 million in revenue. While Room Tax is not appropriate in all communities, for many, the revenue invested in tourism promotion generates more revenue for the local economy.

Many communities spend the majority of the room tax collected for tourism promotion and development, as directed by the state's room tax law, and abiding by the law's original intent. The law states that municipalities must spend at least 70 percent of room tax revenue collected on tourism promotion and development which is defined as marketing projects, tourist information services and municipal development that are significantly used by tourists and reasonably likely to generate overnight stays at lodging properties. There are a few municiplaties that have historically spent less than 70% on tourism promotion and development due to a grandfather provision in the law.

It makes good economic sense for municipalities to invest room tax dollars into tourism promotion and development. In the Fox Cities, a portion of the room tax was invested in the construction of a major youth sports complex with the requirement that the complex owners host and bid on sport tournaments. The Fox Cities CVB began marketing the facility to tournament organizers and have successfully brought many tournaments to the area, including the US Youth Region II Soccer Championship which generated 11,000 room nights in area hotels. In Madison, the Greater Madison CVB used room tax dollars to match a grant from the Wisconsin Department of Tourism for marketing the city as a meetings and convention destination. The bureau booked nine conventions that generated $2.7 million for the community and many hotel stays. Statewide, travelers spent $13 billion last year, generating more than $2 billion in state and local taxes plus 300,000 full-time equivalent jobs.

Certainly, the investment of room tax revenue into tourism promotion and development plays a important role in generating strong economic impact for our municipalities and the state.

Meetings and Convention Spending Grows in 2007 - 6/08

Investments in meeting and convention facilities across Wisconsin as well as other factors helped fuel more spending last year by travelers attending meetings and convention in the state. According to the Wisconsin Department of Tourism's Traveler Expenditure Study, meetings and convention travelers spent an estimated $1.36 billion in Wisconsin last year, up nearly 6 percent from 2006. This spending generated an estimated $227 million in local and state government taxes and fees.

In the last few years, there have been significant expansions and renovations in Wisconsin meeting and convention space. Just a few examples are Chula Vista Resort in Wisconsin Dells, The Osthoff Resort in Elkhart Lake, Lake Lawn Resort on Lake Delavan, Bridgewood Resort Hotel in Neenah, Sheraton Milwaukee Brookfield Hotel in Brookfield and the Country Springs Hotels in Waukesha and Stevens Point. The infrastructure investment combined with warm hospitality, good value and strong marketing efforts by convention and visitors bureaus and meeting facilities have led to the growth in Wisconsin's meetings and convention sector.

Overall, meetings and convention spending is 11% of the $12.8 billion spent by travelers in the state last year. Most people (70%) were traveling in Wisconsin for leisure purposes and 19% were traveling on business trips other than a meeting or convention.

Meetings and conventions are beneficial not only to the host facility, but the city and state hosting the convention. Delegates spend money on food, hotel and entertainment, and yes, even local and state taxes which pumps the state’s economy. Hosting out-of-state attendees also gives the city the opportunity to show off everything it has to offer in hopes they will visit our state again.

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