Department of Tourism & Marketing

Transcription

1 Department of Tourism & Marketing Megan Smith, Commissioner Steve Cook, Deputy Commissioner Tourism & Marketing $3,311,885 Vermont Life 827,003 FY 2014 Governor s Recommend $4,138,888

2 Summary reference for the Agency of Commerce and Community Development FY14 Budget submittal The Appropriations Committees requested a summary that answers the following questions. This information is contained in our Strategic Overview/Performance Information report and on the Program Profile spreadsheet. The index below provides an easy reference. 1) What are your programs? How do these programs meet your core mission? 2) What does success in each program look like to Vermonterts -- both those served by the program and the general population? What performance measures are used to determine progress and what baseline data is available (current and proposed budget, # served, etc)? 3) Is there a better way? Strategic Overview Program Profile Page #: Page #: Department of Tourism and Marketing Mission 1 Population Served 1 Outcomes and Measures 2 Tourism and Marketing Research 2 1 Sales & Marketing 4 1 Cultural Heritage 6 Marketing Partnerships 6 Web/Social Media 8 Domestic Sales 8 International Sales 9 Communications & Outreach 10 1 Vermont Life Magazine 1 Mission 11 Population Served 11 Outcomes and Measures 12

3 DEPARTMENT OF TOURISM AND MARKETING (VDTM) FISCAL YEAR 2014 BUDGET STRATEGIC OVERVIEW/PERFORMANCE INFORMATION STRATEGIC OVERVIEW 1. Mission To promote Vermont s travel, recreation, cultural and historic attractions, as well as the state s goods and services, in coordination with public and private sector partners and to market to a global audience in a manner consistent with the values and traditions of the state for the economic benefit of all Vermonters. VDTM s key objective is to increase awareness of the Vermont brand with the goals of increasing visitation to the state and encouraging the purchase of Vermont products and services. 2. Population Served The Vermont Department of Tourism and Marketing has four primary population groups that are served. The first is businesses in Vermont that fall under the hospitality sector. This would be hotels, resorts, inns, B&B s, attractions, and businesses that provide hospitality services. The Department of Taxes collects the Meals and Rooms tax from more than 5,000 businesses. The second group served by the Vermont Department of Tourism and Marketing are the residents of Vermont. The Department provides information services to residents informing them of activities happening around Vermont and encouraging them to participate in Vermont events, attractions, state parks, historic sites and many others. This in turn helps to support the businesses that provide these services. The third population served is the visitors to Vermont. The Department provides these visitors with information in order to help them make informed decisions to visit our state. In 2011, we estimate that Vermont hosted almost 14 million person trips. Vermont s tourism industry generates over $1 billion dollars in spending and directly supports over 37,000 jobs. It is very important that we continue to cater to our out of state visitors and remain competitive as a travel destination. The fourth population served by the Vermont Department of Tourism & Marketing is businesses that produce and provide goods and services. The Vermont Department of Tourism & Marketing serves not only the tourism sector, but represents the overall brand position of Vermont. By collaborating with Vermont manufacturers and producers of products and services the Vermont Department of Tourism & Marketing is able to enhance Vermont s already powerful reputation for quality in the marketplace. This depiction trickles into many of Vermont s business sectors including agricultural and value added products, existing Vermont brands and Vermont manufactured goods. Page 1 of 12

4 3. Outcomes and Measures Research: Research: A benchmark study to measure the impact of travel and tourism on the Vermont economy during 2011 was completed in 2013 by Chmura Economics & Analytics, Inc., under contract to VDTM. The benchmark, which is reconciled with independent economic measures, estimates that during 2012, $1.7 billion in direct spending by visitors making million person trips to Vermont generated $232.9 million in tax revenue to the State of Vermont. The 2012 benchmark study shows a positive recovery from the Great Recession of 2009 with a 19.4 percent increase in visitor spending and a 16.7 percent increase in the state revenue generated by that spending. Vermont s tourism industry supported an estimated 37,910 jobs during, approximately 13.1 percent of all jobs in Vermont. Recent component studies utilized in developing the benchmark report have focused on lodging establishments, Vermonters as visitors, second-home owners, and travel and tourism employees and proprietors. The benchmark study is performed on odd calendar years. Keeping on Target While reaching out to potential first time visitors is a significant part of tourism promotion, establishing relationships with visitors that encourage and sustain repeat visitation is probably more important than ever during a contraction of the larger economy. Our current research shows that about half of the people using VermontVacation.com are repeat visitors. Information gleaned from the Profile of the Vermont Online Visitor and an updated study of how the Vermont Brand is perceived by visitors and potential visitors in Vermont s major U.S. and Canadian markets help target marketing to potential new visitors and guides communications to previous visitors. The resources at VermontVacation.com, supplemented by regular communications to the more than 50,000 Vermont subscribers, are key to sustaining these relationships. Tourism Sector Makes Steady Recovery Despite the challenges of the Great Recession of 2009, Tropical Storm Irene, and the record warm winter of , Vermont s hospitality and recreation industry has continued the steady recovery that began during Visitor spending generates approximately 90 percent of the taxable receipts for room rentals and more than half of the sales for meals and alcohol: Page 2 of 12

5 Fiscal Year Taxable Receipts: % Change 2012/2011/2010 Meals Rooms Alcohol MRA Total Est. Revenue FY 2012 $ 855,712,824 $ 384,596,003 $ 152,879,565 $ 1,393,188,392 $ 126,915, FY2011 $ 820,911,098 $ 371,567,636 $ 146,642,780 $ 1,339,121,514 $ 121,987, FY 2010 $ 791,511,536 $ 339,998,084 $ 139,870,966 $ 1,271,380,586 $ 115,822, / % 3.51% 4.25% 4.04% 4.04% 2012/ % 13.12% 9.30% 9.58% 9.58% Vermont Tax Dept./VDTM During calendar 2011, the just released report on the economic impact of visitor spending shows that the hospitality and recreation industry generated $272.5 million in tax and fee revenue for the State of Vermont: Table 5.6: Estimated State Revenue Impact of the Tourism Industry, 2011 ($Millions) Fund-Component Total Revenue In-State Visitors Out-of-State Visitors General Fund: Personal Income Tax $15.70 $3.30 $12.40 Sales & Use Tax (@6%) $12.30 $3.50 $8.80 Rooms & Meals Tax $68.40 $11.50 $56.90 Property Transfer Tax $1.00 $0.00 $1.00 Other Taxes/Revenues $16.40 $3.40 $13.00 Total $ $21.70 $92.00 Transportation Fund Gasoline Tax $20.20 $5.10 $15.00 Motor Vehicle Purchase & Use Tax (@6%) $3.40 $0.20 $3.20 Other Transportation Revenues $2.80 $0.60 $2.30 Total $26.40 $5.90 $20.50 Education Fund: Sales & Use Tax (@6%) $6.20 $1.30 $4.90 Motor Vehicle Purchase & Use Tax (@6%) $1.70 $0.10 $1.60 State Education Property Tax $ $0.00 $ Total $ $1.40 $ Total Combined Funds Revenue Impact $ $29.00 $ Note: NA means Not Available Source: Chmura Economics & Analytics Page 3 of 12

6 Sales & Marketing: Markets: Key Northeast drive/fly markets include Washington DC, New York City, Boston, Albany, Hartford/New Haven, Springfield, Philadelphia and Quebec and Ontario (especially the metropolitan areas of Montreal, Toronto and Ottawa). Distant domestic markets (typically air travelers) are Florida, Texas, California and Illinois. Overseas international markets, where we make collaborative promotions through the Discover New England consortium of the six New England states, are the United Kingdom, Germany and France. Marketing Strategies: In FY 2013 the Vermont Department of Tourism and Marketing brought all graphic design and media services in house. Led by VDTM s Deputy Commissioner the Department was able to hire talent and restructure the organization to develop an in house marketing team. This development has allowed the Department to redirect $175,000 previously spent on media production services into direct advertising for the State of Vermont. Mobile New initiatives for FY 13/14 include mobile advertising for Vermont. As consumers use of mobile devices has grown significantly over the last 3 years, users are relying on smart phones and tablets to conduct their travel research. The Department has invested in mobile display advertising to promote Vermont as a tourism destination through this channel. Television Cable and Dish Primary markets include New York City and Boston. Secondary markets include Hartford, New Haven, Providence, Springfield, Albany and Washington, D.C. Cable broadcast is purchased in high-density areas within key markets. Programming for TV and cable is targeted to reach the travel decision maker in the household. The Vermont Department of Tourism also purchased national advertising utilizing the Google Dish Network. This buy extended Vermont Tourism s reach to a national audience. Online VDTM continues to aggressively market Vermont online to new and repeat visitors in Montréal, New York City and Boston. We purchase online advertising in key markets by placing banner advertisements on high profile regional websites such as Boston.com, NewYorkTimes.com, MSNBC.com and Canada.com (Montréal Gazette). All banners drive traffic directly to VermontVacation.com. VDTM also continues to manage a robust pay-per-click campaign on both Yahoo and Google. Page 4 of 12

7 Radio VDTM utilizes radio broadcasting during the summer and fall media campaigns in primary markets and in our in-state resident awareness campaign. Promotions are broadcast through a variety of programming. VDTM purchases families of radio stations in primary markets that cover a broad demographic. Print Advertisements are placed in publications that attract readers interested in outdoor recreation, cultural heritage, unique lodging, fine dining and the Vermont experience. This media often goes beyond our key markets to reach an international audience. Out of Home Outdoor advertising in New York City and Boston is placed in high visibility, high income metropolitan areas to promote Vermont as an exceptional getaway destination. Opportunistic Media To stretch media dollars, we review last-minute opportunities with potential to deliver a strong message to key markets. This provides the opportunity for better priced remnants in print media. Our partnerships with Cabot Creamery and the Vermont Ski Areas Association and pooling of our marketing dollars, allows us to increase the frequency of television spots above what our budget would allow. Special Marketing Promotions: Apples to ipods Visitors to Vermont s pick-your-own orchards had the chance to win an Apple ipod during the sixth annual Apples to ipods promotion in fall Twenty-four Vermont-made wooden apples were placed in apple trees at pick-your-own orchards around the state. Customers who found the wooden apples won an Apple ipod Nano, Classic, Touch or ipad from Vermont s Apple Specialist, Small Dog Electronics. The promotion was sponsored in partnership with Small Dog Electronics, the Vermont Agency of Agriculture and Woodchuck Cider, who provided tastings at the kick-off event. In 1999, the Vermont legislature designated the apple as the state fruit, and the apple pie as the state pie. Vermont has almost 4,000 acres of commercial apple production, and the state s leading apple varieties are McIntosh, Cortland, Red Delicious and Empire. Page 5 of 12

8 Creative Marketing Solutions VDTM recognizes the challenge for Vermont businesses with limited resources to consistently market themselves to an out-of-state audience. Therefore, we have increased our focus on promotions designed to work for tourism-related businesses throughout Vermont by creating no-cost marketing opportunities. Examples include: Cultural Heritage: 2013 marks the 150 th anniversary of the Civil War. Vermont played a key role in the Civil war and in recognition of these efforts the Vermont Department of Tourism and Marketing has captured the history and story of Vermont s role. The Department has created a number of resources including a print visitors guide and website ( to commemorate Vermont s role in the Civil War. Vermont and the Civil War Visitors Guide features approximately 25 sites located across Vermont that tell the many stories of Vermont s participation in the Civil War. Text and images will lead visitors to museums, historical societies, public monuments, historic buildings, and cemeteries where they will learn about Vermonters who supported the anti-slavery movement, who distinguished themselves on the battlefront, and who worked to support the war effort at home on their farms and in their businesses. The Vermont Department of Tourism and Marketing in collaboration with the Partnership for Fairness and Diversity have developed the Vermont African American Heritage Trail. This trail takes you to Vermont museums and cultural sites where exhibits, films, tours and personal explorations illuminate the lives of African Americans for whom the Green Mountain State was part of their identity. This trail will be promoted in FY 2013 to promote Vermont s cultural heritage and encourage both Vermont residents and out of state visitors to experience Vermont s African American Heritage. Tourism Businesses Support VDTM regularly supports culture and heritage visitor opportunities made available by Vermont s wide range of tourism and tourism-related businesses. Free event listings are available on ; a full events calendar database is ed monthly to a variety of local, state, and regional media outlets; and selected events are featured on the website homepage, in the monthly consumer newsletter, and in press releases. Marketing Partnerships Vermont Ambassador Program The Ambassador Program provides Information and customer service training designed for front-line staff and their managers twice yearly. Instructors include industry experts from the Vermont Welcome Centers, Vermont Chamber of Commerce, state government and a number of travel, arts and recreation organizations. Individuals and businesses that fulfill a number of post-training requirements become certified Vermont Ambassadors or Vermont Ambassador Information Centers. Two training sessions are planned for Page 6 of 12

9 Increasing Public/Private Marketing Opportunities Collaborative marketing with the private sector allows the state to leverage many opportunities, including television advertising, public relations initiatives, and a Vermont presence at trade and consumer shows. Relationships with Cabot Creamery and the Vermont Ski Areas Association have allowed the Department s television budget to double the state s investment. VDTM has undertaken an aggressive media campaign throughout the northeastern United States. Our TV, radio, magazine, web and newspaper advertising has been supported by many private sector partners. Statewide event support, promotion of state historic sites, collateral development, fulfillment, the VERMONT call center contracting, and cooperative programs with chambers of commerce and other travel related associations maximize the power of the Vermont brand in the United States and selected markets around the world. Long Trail Brewing The Vermont Department of Tourism and Marketing has created a partnership specific to the Washington DC market with Long Trail Brewing. This partnership includes paid advertising, on the ground events in market IE special promotions for Vermont, unique packaging on all long trail distributed products in market and product sampling.. Cabot Creamery & Vermont Ski Areas Association VDTM has partnered with Cabot Creamery and the Vermont Ski Areas Association to combine marketing dollars to increase the frequency of television advertising and tradeshow attendance. This collaboration has allowed us to leverage additional marketing dollars and create media relationships. These partnerships are utilized seasonally. Mount Snow Ski Area/Town of Wilmington In the aftermath of Tropical Storm Irene VDTM developed a collaborative relationship in which the Town of Wilmington and VDTM cooperatively invested in NYC promotions particular to events taking place within the region. This campaign ran during the one year anniversary of Irene. Southern Vermont Businesses The Vermont Department of Tourism and Marketing has developed a strong relationship with a powerful group of Southern Vermont Businesses. In the coming year we hope to increase participation from these businesses to market in the Albany market. Currently the collaborative has allowed for the combined group to triple its investment in advertising. Current businesses involved in this partnership include the Manchester Designer Outlets, The Equinox Resort, Stratton Ski Area and Orvis. Page 7 of 12

10 Web/Social Media: In addition to its Web site, VDTM communicated directly with Vermont visitors using its marketing newsletter. The newsletter supports the overall web marketing effort with interest-specific seasonal promotions. Prospective travelers visiting VermontVacation.com opt in to receive quarterly e-newsletters highlighting the best of Vermont and targeting their chosen interests. In addition, VDTM uses social media channels such as Facebook, Twitter, YouTube and Flickr to provide a fully interactive experience, enabling Vermont s fans to comment on and recommend locations, attractions and/or events to others, help others in vacation planning. VDTM keys in on these conversations to develop Web and newsletter content of interest to potential travelers. These efforts have been recognized nationally which has brought in much earned media attention. Today the Vermont Department of Tourism and Marketing has over 24,000 fans following our Facebook feed and over 11,300 followers on Twitter. The Vermont Vacation Planner is the state s most comprehensive listing of lodging, dining, attractions, and events. It continues to be the most used portion of VermontVaction.com, with an average of 85,000 searches for information each month. The online itinerary planner allows consumers to create detailed day-to-day business and vacation trip in Vermont. The Itinerary planner allows mapping, scheduling, and the saving of trip plans by consumers who log in. On July 23rd, Vermont s tourism department handing over the reins to the account to a different Vermont citizen each week. The Twitter feed has over 2,000 followers. The project s goal is to present a contemporary, humanized narrative as it works to attract more tourists and young residents. VermontVacation.com VermontVacation.com is now completely maintained and updated by staff of the Vermont Department of Tourism, severing our reliance on contracted vendors to make changes to the site. Domestic Sales VDTM s sales team facilitates more than twenty trade and consumer travel shows, missions and events worldwide each year. These efforts engage up to a dozen Vermont partners, e.g. trade associations, chambers of commerce, ski areas, etc. Each year, VDTM obtains tens of thousands of dollars in complimentary stays and packages from Vermont resorts and hotels and attractions to apply toward its media campaigns. This trade allows our media buyer to leverage our budgeted funds for print and broadcast advertising with in-kind value. We will be able to further extend our media reach at no incremental cost to the State of Vermont by encouraging in-state companies to advertise the Vermont vacation experience in their product and service advertising. In addition, VDTM continues to work with the industry to host trade Page 8 of 12

11 familiarization trips, inspire events and conferences that attract visitors, and respond to our Vermont partners ongoing requests for advice and services. Regular communication and sales missions with travel agents and tour operators ensure that Vermont retains a strong presence in travel trade product offerings throughout the world. Motor coaches continue to be an integral part of the Vermont tourism mix. Hundreds of motor coach companies come to Vermont with thousands of travelers during all four seasons. Interaction with consumers at special events and consumer shows highlight Vermont as a vacation destination in a way that other promotional mediums cannot. International Sales and Marketing International visitation to Vermont remains the fastest growing sector of our tourism economy. In order to reach these valuable markets with the greatest economy and efficiency, VDTM has worked in cooperation with the other New England states for nearly two decades. Discover New England (DNE) is a unique collaborative established by the New England State Travel Directors Council in DNE was designed to create a collective international marketing engine managed by the State Tourism Directors/Commissioners of the six New England States. This long standing annual agreement with DNE has enabled Vermont to participate in equal, collaborative promotional opportunities. Each state is an equal partner and contributes an equal dollar amount to fund DNE. DNE promotes and represents all sectors of the tourism industry in New England, targeting the primary markets of Germany and the United Kingdom, and works with the emerging secondary markets such as Ireland and Italy. Discover New England complements the sales effort done by VDTM in the international market. Porter Air Initiative The Vermont Department of Tourism & Marketing in an effort to increase international business and travel to Vermont successfully developed a collaborative with Porter Air, the Vermont Ski Areas Association and Burlington International Airport (BTV) for direct service from Toronto to Burlington. In an effort to support this development the Department will invest $75,000 to support a cooperative marketing endeavor with Porter Air. Ski Vermont is also investing in advertising with Porter Air to support this effort. If the initial winter service is popular, it is anticipated that Porter will consider adding more flights in winter and other seasons. Special Porter ski packages and shuttle bus service for Jay Peak, Smugglers Notch Resort, Stowe Mountain Resort and Sugarbush Resort are available. During this pilot project Porter provides twiceweekly roundtrip flights from Billy Bishop Toronto City Airport to Burlington. The new direct flight to Burlington, Vermont, from Toronto, Canada, on Porter Air will open up many more opportunities for tourism, trade and business investment between Vermont and Ontario. Page 9 of 12

12 Communications & Outreach: Public Relations/Outreach Each year, Vermont receives millions of dollars in earned domestic and international coverage in print, online, television and radio media outlets. VDTM works with journalists on a regular basis by pitching travel story ideas, setting up familiarization tours/press trips, and assisting with research and information. Improving Communications The envy of many state tourism offices, continues to see steady growth in unique visitors while providing Vermont tourism businesses with free exposure through listings and seasonal vacation packages. The Vermont Travel Planner provides free listings of lodging facilities, restaurants, events, attractions and recreation. The database also supports other state-sponsored programs that assist the traveling public including: touch screen kiosks in Welcome Centers; 511 a voice-activated phone system providing traveler information; and a live call center (1-800-VERMONT) that operates 24/7. VDTM sends monthly electronic newsletters to the Vermont travel industry and also distributes seasonal, interest-based newsletters about Vermont to a list of more than 40,000 subscribers. Page 10 of 12

13 VERMONT LIFE 1. Mission: In addition to serving as an informative, entertaining magazine for Vermonters and Vermont-passionate out-of-staters, Vermont Life is a marketing tool for Vermont Department of Tourism & Marketing, Vermont Department of Economic, Housing & Community Development, Vermont Captive, other agencies and departments of the State of Vermont, and companies and private sector organizations (associations, colleges, etc.) state-wide. Vermont Life now comprises: 1. Quarterly print magazine, Vermont Life 2. New digital edition of Vermont Life 3. vermontlife.com 4. Monthly Vermont Life e-news 5. Eight annual Vermont Life calendars and three Vermont Life books 6. vermontlifecatalog.com 7. Line of Vermont artisan gifts marketed via printed and online catalogs 8. Special projects, e.g., publishing the 2013 Vermont Fish & Game calendar and serving as online/phone retailer and fulfiller of I Am Vermont Strong fundraising license plates (as of Jan. 17: 6,413 plates sold and $128,260 donated to charity). As an enterprise within state government, Vermont Life is self-funding through sales of subscriptions, advertising, calendars and Vermont artisan gifts. 2. Population Served: Vermont Life, the magazine, prints 55,000 copies read by 40,000 Vermonters and 80,000 out-of-staters. Vermontlife.com: 6,000 unique visitors monthly Vermont Life E-News: 16,000 permitted addresses. Facebook: 7,300 consumers likes Twitter: 5,366 followers Pinterest: 270 followers Page 1 of 3

14 3. Outcomes and Measures: CIRCULATION FY10 FY11 FY12 FY13 FY 14 (average per year) (projected) (projected) 48,326 40,460 36,620 36,000 38,500 PROFIT & LOSS Ad Sales $348,416 $268,670 $329,326 $360,089 $400,869 Subscription Revenue $589,695 $496,247 $478,532 $436,000 $461,000 Product Sales $456,467 $488,924 $558,185 $520,000 License Plate sales $35,000 $0 Net Profit and Loss ($158,715) ($383,281) ($347,344) ($292,584) $7,956 HOW DID WE GET HERE? The average loss from was $66,000 annually. The Recession began to hammer revenues in 09, as the magazine sector continued to tumble. Ad volume dropped from a high of 147 pages in issues published in 2008 to 75 pages in issues published in Autumn 10 Summer 11. It has been increasing since then. Circulation revenues dropped by about $80,000 annually. Expansion of the catalog resulted in an $115,000 annual loss. Last year s loss included a $60,000+ write off for unsold calendars, stale product inventory and advertising/product bad debt. Page 2 of 3

15 WHAT ARE THE PLANS TO REGAIN PROFITABILITY? Vermont Life is implementing 10 projects to reduce expenses, increase revenues and otherwise strengthen the business of the enterprise. Vermont Life s P&L is already improving and will be balanced by the end of Fiscal In the nationally still-declining print advertising sector, Vermont Life ad sales have grown year-over-year since Autumn Vermont Life has hired Shain + Oringer, a pre-eminent magazine circulation consulting firm, to study Vermont Life s profile, identify strengths and weaknesses, and work with staff on a three-year plan to restore paid circulation to the 50,000 range. A right-sizing of the Vermont Life Catalog business will improve the bottom line by $100,000+. Vermont Life now has a digital marketing specialist on staff who has created a new digital edition of the magazine, re-engineered the website, taken over social media and web-based promotions and is currently working on a new catalog website. Steps to Financial Stability Fiscal Fiscal Fiscal Fiscal & Beyond VL Catalog Lite N/A $115,000 $115,000 $115,000 Grow wholesale $ 10,000 $ 15,000 $ 20,000 $ 25,000 Grow advertising $ 30,760 $ 71,540 $ 95,560 $100,000 Grow circulation N/A $ 25,000 $ 50,000 $ 60,000 Editorial savings $ 2,000 $ 4,000 $ 4,000 $ 4,000 Photography savings $ 2,000 $ 4,000 $ 4,000 $ 4,000 Increase mag frequency N/A $ 25,000 $ 50,000 $ 50,000 Online auction $ 10,000 $ 11,000 $ 12,000 $ 12,000 Vermont Life Tours N/A $ 10,000 $ 15,000 $ 15,000 Vermont Life Society N/A $ 20,000 $ 30,000 $ 40,000 Balance sheet Enhancements $ 54,760 $300,540 $395,560 $425,000 Page 3 of 3

16 FISCAL YEAR 2014 BUDGET DEPARTMENT PROGRAM PROFILE DEPARTMENT: DEPARTMENT OF TOURISM AND MARKETING Name and brief narrative description of program (not to exceed 2 sentences for each) GF $$ TF $$ Spec F (incl tobacco) $$ Federal $$ ARRA$$ All other Authorized funds $$ Total funds $$ positions Amounts granted out Administration FY 2012 expenditures Management and administrative support for all programs; industry support and administration of grant funds are all part of the general 390, , ,715 FY 2013 estimated expenditures administration of the department. 477, , ,500 FY 2014 budget request 520, , ,500 Sales and Marketing FY 2012 expenditures Coordinate strategic direct advertising campaigns to promote Vermont as a top year round tourism destination. Develop, produce and 2,797,414 73,896 2,871,310 5 purchase advertising media. Fulfillment of visitor requests for FY 2013 estimated expenditures information generated by advertising campaigns. Travel trade 2,584,181 2,584,181 5 relations which includes participation in domestic and international trade shows and sales missions. Co-promotion and co-sponsorship with private sector partners to promote Vermont as a tourism FY 2014 budget request destination. 2,470,158 90,000 2,560,158 6 Communications and Outreach FY 2012 expenditures Coordinates communications, database, Web, public earned media and research relationships among statewide and regional tourism, 68,763 68,763 1 FY 2013 estimated expenditures agriculture, natural and cultural heritage organizations. 105, ,941 1 FY 2014 budget request 92,207 92,207 1 Research FY 2012 expenditures Provides studies of visitor demographics, interests, activities, spending and economic impact for use in marketing strategies and 139, ,275 1 FY 2013 estimated expenditures policy decisions. 107, ,892 1 FY 2014 budget request 138, ,687 1 Vermont Life Magazine FY 2012 expenditures The division exists to publish a top-quality magazine celebrating, explaining, and promoting the State of Vermont, its people and its 669, ,135 9 FY 2013 estimated expenditures heritage. 773, ,053 9 FY 2014 budget request 827, ,003 9 Total Department FY 2012 expenditures 3,396, ,031 4,139, ,715 FY 2013 estimated expenditures 3,275, ,053 4,048, ,500 FY 2014 budget request 3,221, ,003 4,138, ,500

17 DEPT OF TOURISM AND MARKETING FY 14 Contracts Account FY 2014 Name/Type Code Total Cost Gen Fund Advertising Agency -Creative Dev $18,800 $18,800 Advertising Agency -Creative Dev Web $20,500 $20,500 Advertising Agency -Adv/Mktg Other $35,700 $35,700 Media Planning/Buying $76,000 $76,000 Competive Computing $10,500 $10,500 Call Center $39,000 $39,000 Fullfulment Services $7,800 $7,800 Canadian Mkt Trade Show Services $32,500 $32,500 Clipping Service $13,850 $13,850 Trade Show Representation $10,000 $10,000 UK Marketing Services $65,000 $65,000 Asian Marketing Services $26,200 $26,200 Total T&M $355,850 $355,850 Creative Development $18,800 $18,800 Creative Development -Web $20,500 $20,500 Advertising/Marketing Other $35,700 $35,700 Media Planning and Buying $76,000 $76,000 Contr & 3rd Pty-Info Tech $10,500 $10,500 Other Contract Services $194,350 $194,350 Total T&M $355,850 $355,850

18 Business Unit Department of Tourism & Marketing Tourism & Marketing Carry Forward Available Remaining Balances at 06/30/12 Source: VISION Query - VT APPROP FUND SUM NW Fund Dept Budget Amt Encumb Amt Expended Amt Available Amt ,881, , ,396, One-Time: , , , Justification for Deptid as follows: Act 63 Sec B.1103 (a) VT Civil War Sesquicentennial is a 5 year project that will continue for 41, next 4 years General Fund Purchase Orders rolled from FY12 to FY13 Contracts/Media Buys/Sponsorship/FY12 Grants Deptid , Deptid , Deptid , Deptid , Deptid , Total PO's 485, updated: 07/16/12 cgc