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COVID-19 tourism recovery interim report

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Congressional materials
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2022 2022Commercelegreports Oedc Covid Recovery Tourism 99F7222D Aeb6 4A53
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2022 2022Commercelegreports Oedc Covid Recovery Tourism 99F7222D Aeb6 4A53

Summary

A COVID-19 tourism recovery interim report to the Legislature from the Washington State Department of Commerce, Office of Economic Development and Competitiveness, dated September 15, 2022. It covers tourism marketing from July 1, 2021, to June 30, 2022, funded by a $12 million allocation in section 129(57) of the 2021-22 operating budget. The report states that a contract of $11,640,000 went to the Washington Tourism Alliance, with $4,343,121 spent in the first year and $7,256,879 to be spent in year two. Its activities report describes the True to Nature campaign, a $1.6 million campaign that a research firm credited with about $52.7 million in out-of-state visitor revenues, plus website, social media and public relations work. The report closes with a budget table of year-two spending by category.

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Full text

 COVID-19 tourism recovery
 interim report



Interim report on the $12 million allocation for state tourism
marketing from the 2021-22 operating budget




                                                 September 15, 2022
       OFFICE OF ECONOMIC
       DEVELOPMENT AND
       COMPETITIVENESS                           Report to the Legislature

                                                 Director Lisa Brown
V3.0
Acknowledgments

Washington State Department of Commerce
Robb Zerr, senior managing director
Small Business Training and Education,
State Marketing and Tourism




Washington State Department of Commerce
Office of Economic Development and
Competitiveness
206-256-6111
robb.zerr@commerce.wa.gov



1011 Plum St. SE
P.O. Box 42525
Olympia, WA 98504-2525

www.commerce.wa.gov

For people with disabilities, this report is available
on request in other formats. To submit a request,
please call 360-725-4000 (TTY 360-586-0772)




 COVID-19 TOURISM RECOVERY INTERIM REPORT
Table of Contents
Executive summary...................................................................................................................................... 2

Introduction ................................................................................................................................................. 4

Activities report ........................................................................................................................................... 4

Appendix A: Campaign samples ................................................................................................................. 14

Appendix B: Actual and projected budget spend ......................................................................................... 17




  COVID-19 TOURISM RECOVERY INTERIM REPORT                                                                                                       1
Executive summary
Overview
This interim report covers tourism marketing activities from July 1, 2021, to June 30, 2022. Funding was
provided by the Washington State Legislature in the 2021-22 operating budget (ESSB 5092), section 129(57).
The legislation allocated $12 million to assist in the recovery of tourism in Washington state after the COVID-
19 pandemic. The funding is subject to Section 601(a) of the Social Security Act, as amended by section 5001
Coronavirus Aid, Relief, and Economic Security Act (CARES ACT), and Title V and VI of the CARES Act. This
was a one-time allocation, covering activities from July 1, 2021, to June 30, 2023. A final report will be
submitted June 30, 2023.

A sole source contract was awarded to the Washington Tourism Alliance (WTA), the agency of record for
tourism marketing. A contract outlining the deliverables was negotiated with the WTA and executed by
representatives from the WTA and Commerce. The final contract was for $11,640,000 for the 2021-2023
biennium, with $4,343,121 spent in the first year and $7,256,879 to be spent in year two. Commerce retained a
portion of the funds for contract administration and oversight.

This interim report was required by the Legislature. A final report will be submitted June 30, 2023. This report
was prepared by the Department of Commerce and its vendor of record, State of Washington Tourism.

Highlights
   The Washington Tourism Alliance (doing business as State of Washington Tourism or SWT) made
   measurable progress to rebuilding awareness of Washington as a destination for both in-state and out-of-
   state visitors. As public health concerns eased and destinations reopened, the WTA worked closely with
   destination marketing organization (DMO) partners to safely reopen while slowly increasing visitor
   volumes, so as not to overwhelm destinations, workers and supply chains. A DMO is an organization that
   promotes a location as an attractive travel destination. They are alternately referred to as tourist boards,
   tourism authorities or "convention and visitors bureaus."
   As part of the strategy, the WTA focused on in-state day trips for residents before expanding to overnight
   stays and extended stays as tourism began to return to pre-pandemic levels, spurred by the state's
   marketing efforts as well as the return of cruise ships and extended stay packages.
   In the midst of the pandemic, the WTA launched a comprehensive rebranding of the state's tourism
   marketing. This included a new website, organization renaming (State of Washington Tourism) and
   launching True to Nature, the first of several new planned campaigns. These efforts are intended to
   differentiate and elevate the state's branding in news, travel and social media advertising, and the minds of
   consumers to compete more effectively with other state tourism attraction efforts.
   The WTA expanded staffing to add capacity for more state-level activities, such as webinars and
   tradeshows, and handling more queries from the public and the news and travel outlets.
   The WTA undertook additional activities to strengthen tourism in rural areas and historically marginalized
   communities. These communities and many counties are tourism dependent, and tourism/hospitality is
   their primary industry and source of employment.

Recommendations
As the WTA is in year one of a two-year plan to expend the funding, there are no recommendations in this
interim report beyond continuing to develop and execute the planned activities as outlined in the initial
contract, many of which are represented here in the activities section of this report.


 COVID-19 TOURISM RECOVERY INTERIM REPORT                                                               2
The pandemic and subsequent recovery has demonstrated that tourism attraction and marketing is location
dependent. While some parts of the state have experienced tourism at pre-pandemic levels, counties such as
Pacific County continue to struggle to meet overwhelming demand for tourism services while dealing with
worker housing shortages and continued supply chain issues creating shortages in restaurants and food
outlets. This has required the WTA to modify some of its strategies to recognize the continued effect
workforce and housing shortages are having on specific communities as well as supply chain and
transportation disruptions. Most of these are outside the sphere of tourism marketing and attraction, but affect
the ability of communities to recover to pre-pandemic levels.

As Commerce nears the end of this contract cycle, it will continue to work with the WTA to develop a
sustainable, effective and scalable tourism marketing plan that meets the expectations of the public and the
tourism and hospitality industry.

To that end, a projected spend for the coming year is included in Appendix B, along with the previous spend for
the past fiscal year.




 COVID-19 TOURISM RECOVERY INTERIM REPORT                                                            3
Introduction
Background
Pursuant to section 129(57), Chapter 334, Laws of 2021 (the 2021 operating budget), this grant agreement and
interim report covers marketing and communication services related to COVID-19 recovery of tourism-related
businesses, generating tourism demand for state communities and businesses, recovering market share with
competing western states, and two written reports for the Legislature.

For the first year of this contract, July 1, 2021, through June 30, 2022, the Washington Tourism Alliance
(hereinafter referred to by its dba State of Washington Tourism or SWT) initiatives focused on a combination
of consumer marketing and communications, travel trade development and destination development and
management.

This report was prepared jointly by the Department of Commerce and State of Washington Tourism, which
serves as the contractor of record.

Legislative mandate
This report was produced to satisfy the portion of the requirements of section 129(57) of the 2021-22
operating budget:

    "$12,000,000 of the coronavirus state fiscal recovery fund— federal appropriation is provided solely for a single
    contract with the non-profit statewide tourism marketing organization that is party to the contract pursuant to RCW
    43.384.020. The funds will be used to assist recovery for tourism-related businesses, generate tourism demand for
    Washington communities and businesses, and sustain recovery market share with competing Western states. The
    department and the contractor shall submit a report to the legislature June 30, 2022, and June 30, 2023."



Activities report
State of Washington Tourism (SWT) led numerous activities to enhance and support tourism across
Washington in the previous fiscal year. A summary of those activities follows.

Consumer advertising and marketing
State of Washington Tourism created a strategic consumer marketing plan with high-level objectives and
month-by-month activities through June 2022. The plan began with digital placements and a regional/feeder
market campaign. With the launch of the new destination brand, State of Washington Tourism, it scaled up to a
fully integrated campaign running in select domestic and Canadian air markets.

Expedia advertising partnership
A partnership with Expedia boosted the presence of Washington with consumer travelers already searching for
and booking travel. Display ads on Expedia properties drove customers to a custom landing page with
additional Washington inspiration for seasonally targeted regions of the state.

Explore Washington’s Backyard campaign
The Explore Washington’s Backyard summer 2021 marketing campaign encouraged regional travelers to
explore the state's natural wonders through an incentivized passport program and itineraries built around


 COVID-19 TOURISM RECOVERY INTERIM REPORT                                                                     4
scenic byways. This initiative included paid social media marketing on Facebook and Instagram launched in
June 2021 to drive travelers to campaign landing pages and encourage downloading the campaign’s mobile
passports.

True to Nature campaign
The True to Nature campaign ran from January to June 2022. The $1.6 million consumer campaign focused
on awareness and interest in the diverse visitor experiences available year-round in Washington for both in-
state and out-of-state tourists. It emphasized increasing shoulder-season and off-season visitation (September
through April), when destinations around the state have capacity to welcome visitors. The goal was to direct
visitors away from the most popular destinations to promote social distancing and safe tourism practices. The
fully integrated campaign was themed to True to Nature and included video and digital and social components
plus a partner toolkit, showcasing the beauty of the state and its residents.

During the high-season summer months, the campaign focused on marketing and messaging about
responsible and safe travel, encouraging visitors to think about less-visited attractions and locations, and
engaging with tools like the TREAD Map App to explore new trails.

Key ad campaign elements
    Targeted consumer: Based on previous persona research, the "Pathfinder" was identified. This target
       customer loves travel, is open minded, active, and is interested in both urban and rural experiences.
    Target markets: Washington, Oregon, California (specifically San Francisco, Palm Springs, Chico,
       Eureka, Santa Barbara), Montana, Arizona, Colorado. Vancouver, B.C., was included pending travel
       guidance from the federal governments in both the U.S. and Canada.
    Channels: Broadcast and connected TV, digital, social media
    Ad campaign results: 100 million impressions across media partners. This doesn't yet include
       broadcast television impressions.
    Web traffic: More than 250,000 new website sessions. Notably, digital video placements drove
       significant web traffic.

Full campaign website metrics
 Medium                    Sessions               New users                Page views

     Display                  101,720                  94,500                  114,694

     Native                   2,379                    1,848                   3,430

     Social                   64,389                   50,695                  69,299

     Video                    49,377                   32,016                  62,848

     Direct (includes on
                              33,636                   31,120                  38,329
     display partner)

     CTV                      20                       10                      22

     Total                    217,885                  179,069                 250,293

     Website total            251,521                  210,189                 288,622




 COVID-19 TOURISM RECOVERY INTERIM REPORT                                                              5
True to Nature ad campaign ROI
SMARI Insights, a national marketing research firm, compiled an independent return on investment (ROI) study
of the impacts on visitation and visitor spending from those who viewed campaign media. The True to Nature
advertising effectiveness report, released June 27, 2022, indicated:

      The initial True to Nature campaign influenced approximately $52.7 million in out-of-state visitor
       revenues.
      The campaign had an ROI of $33 generated per $1 spent on paid media (33:1 ROI).
      The campaign reached 41% of travelers in Washington's target markets.
      Ad-aware visitors spent more, stayed longer and did more activities during their trips.
      Millennials, BIPOC and people with children in the home were more aware of the advertising.
      77% of ad-aware travelers in target markets researched visiting Washington, vs. 49% of unaware
       travelers.

Consumer analytics
SWT maintains a contract with Datafy for ongoing consumer data and analytics (travel, spending,
demographics, and psychographics [the study of consumers based on their activities, interests, and opinions])
for Washington visitors. SWT and industry members use the resulting data to develop marketing strategies and
campaigns.

SWT offers 30% discounted subscription to state communities that do not have a destination marketing
organization DMO. DMOs are offered a 20% discount.

Direct consumer marketing
The direct consumer newsletter was suspended during the pandemic. It re-launched in April 2022 upon more
general state reopening efforts across the country. Since April 2022, it has an open rate of 32% (above the
industry average of 16.97%) and a click through rate of nearly 3%.

Washington State Visitor Guide
The Washington State Visitor Guide is a printed brochure distributed to visitor centers, airports and other
places frequented by visitors. It includes suggestions for activities, maps and other essential information for
travelers. It is also available online for visitors to browse before arrival.

          Distributed annually in June
          375,000 copies distributed to potential visitors nationwide

The visitor guide is available online. Print copies can be requested.

Multimedia library
More than 1,440 photos were added to the library for SWT and partner use to promote tourism to the state
since mid-2021. The online library can be used by travel partners, travel writers and publications, DMOs,
influencers and social media content managers.

General scenics, beauty shots and B-roll video was created for 10 state regions:

      Mount Rainier
      Spokane
      North Cascades


 COVID-19 TOURISM RECOVERY INTERIM REPORT                                                              6
      Snoqualmie Pass/Roslyn
      San Juan Islands
      Olympic and Kitsap Peninsulas
      Columbia River Gorge
      Wine Country in Eastern Washington
      Trails and lakes statewide
      Puget Sound and U.S. portion of the Salish Sea

Destination website redevelopment
The advertising program drives out-of-market consumers to the website www.stateofwatourism.com. In
conjunction with the new destination brand, SWT developed a responsive, modern website with enhanced
regional information and trip planning tools. The website serves as a hub for incoming visitors.

The site redevelopment included a focus on generating new and more expansive content, such as city and
seasonal guides, to add more value for visitors. The campaign’s ratings were in the top 10% of all campaigns
measured by SMARInsights, indicating SWT’s newly launched destination brand and campaign messaging
resonates with targeted visitors.

Performance metrics include:

      191% increase in page views year-to-date (June 2022) — 532,000 in 2022 vs. 183,000 in 2021
      302% increase in new users
      568% increase in mobile traffic
      211% increase in new page views

Social media channels
Social media's overall audience has increased 55%, with total engagements (views and clicks) up 231%, since
April 2021.

      Twitter: 687% increase
      Facebook: 8% increase
      Instagram: 105% increase

Travel public relations campaign
SWT retained GreenRubino as its destination PR agency beginning in August 2021 to create positive earned
travel and features media coverage across the state.

This includes:

      Targeted media pitches for travel and features media in the U.S. and Canada
      Press release distribution
      Promotion at top media marketing places
      Media hosting in Washington destinations
      Year-round tracking and reporting of earned media coverage
      Distribution of media leads to state industry partners




 COVID-19 TOURISM RECOVERY INTERIM REPORT                                                           7
Hosted media
SWT hosted about 30 travel journalists from August 2021 to June 2022 as part of group press trips and
individually hosted trips, all based on confirmed assignments from media outlets to gather stories. Group
press trips included sponsorship of the Travel Bloggers Exchange conference in the Tri-Cities in April 2022 and
SWT-funded group press trips to the Olympic Peninsula, Seattle Southside, Spokane, Eastern Washington, the
Long Beach Peninsula, Bellingham, and other areas.

PRSA Conference
SWT also helped host the visits of media members attending the Public Relations Society of America (PRSA)
Conference in Spokane in May 2022. Journalists hosted included:

      Kellee Edwards, “Kellee Set Go!”, Travel Channel
      Emma Banks, freelance, Thrillist
      Keith Hanson, Passport magazine
      Nils Bernstein, food editor, Wine Enthusiast
      Kat Kinsman, senior editor, Food & Wine
      Nisreene Atassi, “Out Travel The System” podcast
      Jenne Peters, freelance travel journalist
      Heather Greenwood Davis, travel journalist and on-air storyteller, National Geographic
      Jill Robinson, travel journalist/freelancer
      Sally Braley, managing editor, Northstar Meetings Group
      JT Long, editorial director, Smart Meetings
      Dana E. Givens, freelance, Fodor’s Food & Wine, Skift, Business Insider
      Kelsey Ogletree, freelance, Travel + Leisure, founder of Pitchcraft
      Travis Levius, freelance, Conde Nast Traveler, Travel + Leisure, AFAR
      William O’Connor, The Daily Beast
      Megan Spurrell, senior editor, Conde Nast Traveler
      Jennifer Barger, senior editor, National Geographic
      Melanie Lieberman, global features editor, The Points Guy
      Daniel Schiffler, New York Times' “52 Best Places”
      Kate Loweth, Tiny Beans
      Liza Weisstuch, Washington Post
      Valerie Stimac, Valise and Valerie
      Lauren Kramer, Open Road Driver
      Megan Spunnell, Conde Nast Traveler
      Malik Coherel, Quebecor

Editorial media engagement
There were 1,074 media engagements, including story pitches, media visits, media assistance (such as photos,
research, quotes), media marketplace interactions and more.

Earned media
There were more than 165 million media impressions of secured coverage through June 2022 (direct SWT
public relations agency engagement).

GreenRubino also evaluates media coverage with the Barcelona Principles scorecard. Scores are derived from
the following equation: Quality (1-10) + Visibility (1-10) = BP Score (max score of 20).


 COVID-19 TOURISM RECOVERY INTERIM REPORT                                                            8
      Quality is measured and evaluated on content, writing, photography, links, sentiment, compression,
       accuracy
      Visibility is measured and evaluated based on media tier, publication type, reach, engagement,
       reputation of outlet, platform, target audience
      Median BP score for Washington state: 17.58 out of 20

Industry Recovery and Destination Development Program
SWT created the Industry Recovery and Destination Development Program to promote and assist rural and
underserved communities and businesses throughout the state. Ongoing program elements educate, support
and develop tourism readiness that, in turn, strengthens local economies and regional resiliency in pandemic
recovery.

The program began with regional tourism assessment workshops in each of the 10 geographic regions across
the state to assess needs and products, share best practices, conduct training, and identify funding needs and
strategies. Subsequent work in 2021 and 2022 included:

      Comprehensive tourism development workshops. The curriculum included visioning and planning,
       marketing and communications, and active team development.
      Creation of low- and no-cost tools, technical assistance, resources and opportunities for rural and
       underserved markets. This includes consumer website advertising programs for communities not
       served by DMOs and inclusion in larger SWT marketing campaigns and social media activities.
      Educational seminars and webinars, including the Tourism Skillshop series beginning in 2022.
      Development and promotion of cross-region assets and partnerships, including with state agencies and
       national partners.
      Programs and communications that assist in managing visitor flows related to destination need,
       seasonality, community sensitivities, public health orders, infrastructure capacity and development.

Rural Tourism Support Program
SWT created and implemented the Rural Tourism Support Program in fall 2021. It is a pillar of SWT's
destination development strategy and a resource for rural and underserved communities. The program serves
as a model for communities across the state striving for sustainable tourism growth.

The program features a community tourism approach to destination development and is facilitated by
sustainable-tourism expert Kristin Dahl, founder of Crosscurrent Collective. A committee of local stakeholders
determines key action items, including a 10-year vision for the evolution of the destination and a better
understanding of how regional, national and global travel trends apply locally, with the goal of improving the
quality of place for visitors and residents.

Program applicants must identify tourism as an economic development strategy and intend to work
collaboratively with regional partners as a visitor destination. Upon successful completion of the program (six
to eight months), tourism stakeholders are encouraged to apply for financial assistance from SWT and other
funding sources to support projects identified as priorities in a series of community workshops.

The first participant was the Tri-County Economic Development District (TEDD) in northeast Washington, which
includes Ferry, Stevens and Pend Oreille counties. Work began in fall 2021 and was completed in spring 2022.

TEDD held four community workshops, three networking events and several workshops. These included:



 COVID-19 TOURISM RECOVERY INTERIM REPORT                                                             9
      March 29, Chewelah: Kickoff networking event at the Chewelah Golf & Country Club
      March 30, Chewelah: All-day visioning and scenario planning workshop at the Chewelah Golf & Country
      April 26, Republic: All-day outdoor recreation and adventure travel workshop at K-Diamond-K Guest
       Ranch
      April 26, Republic: Evening networking event at the Republic Brewing Company
      April 27, Republic: All-day destination development/management workshop at K-Diamond-K Guest
       Ranch
      May 17, Usk: All-day destination promotion and visitor communications workshop at the Camas Center
       for Community Wellness
      May 17, Usk: Evening networking event at Kalispel Casino

Twenty-two destination representatives participated in the program: TEDD, Spokane Tribe of Indians, Kalispel
Tribe of Indians, Confederated Tribes of the Colville Reservation, Ferry County Sunrise, Washington State
University Extension Ferry County, National Park Service, Colville National Forest, Rural Resources Community
Action, Colville Together, Vaagen Brothers Lumber, Visit Spokane, Nordlig Motel, Chewelah Creative District,
Pend Oreille Regional Tourism Alliance, Pend Oreille County Economic Development Council, Northeast
Washington Forest Coalition, 49° North Mountain Resort, Fruitland Valley Vineyard & Winery, Wuesthoff
Excavation Inc., Audubon Washington/the Great Washington State Birding Trail, Colville Rotary Club/the
Blazing Saddles Bike Ride.

Agritourism and DMO development and recovery grants
In mid-2021, SWT operated industry grant programs in partnership with the state departments of Agriculture
and Commerce. SWT administered and distributed $1 million in grants to nonprofit destination marketing
organizations and helped administer $2 million in grants to agritourism businesses throughout the state.
Correspondingly, SWT hosted an agritourism webinar in June 2022 that featured nationally renowned experts
and a panel discussion with local business owners that successfully implemented agritourism to supplement
their businesses. More than 200 people registered for the webinar.

Destination management
In spring 2021, SWT partnered with TREAD, an outdoor advocacy nonprofit organization, and Dharma Maps to
deploy the new TREAD Map App pilot program. The program combines a consumer-facing, location-based app
with robust, real-time trail and recreational data, updates and advisories.

The program pilot begin in summer 2021 in the trails and lakes region of Central Washington (Kittitas, Grant,
Douglas, Chelan and Okanagan counties), which experienced heavy public lands use in the summer and
needed assistance to balance the flow of tourism.

The TREAD Map App expanded statewide in spring 2022, incorporating participation from community
sponsors, recreational user groups and state land managers. The app offers real-time updates and advisories
to travelers and recreation users, and routes them to less-frequented destinations, seasons and days of the
week.




 COVID-19 TOURISM RECOVERY INTERIM REPORT                                                             10
Travel trade sales and promotion
SWT focused on tour operators, travel retailers and consumer media for new and expanded tour products in
key North American and overseas markets. Goals included:

      Increase consumer sales through retail distribution systems (including travel agents, tour operators
       and travel suppliers)
      Work with travel partners and DMOs
      Promote the state as a destination and offer partnership promotional opportunities at industry trade
       shows
      Leverage travel trade channels, advertising and online webinars to build destination awareness
      Develop packages of state destination itineraries
      Host familiarization tours (as pandemic travel allows)

Trade shows
Go West Summit, Los Angeles, March 1-4, 2021
The Go West Summit introduces the world’s top international tour operators to specialty travel suppliers
offering tourism-related products or services in the American West. SWT held 23 meetings with tour operators,
receptive tour operators or media and held a caucus for Washington DMOs to update, plan and sell.

ITB, Berlin, Germany, March 9-12, 2021
In partnership with the Port of Seattle, SWT held 12 virtual meetings with European tour operators. ITB is the
world’s largest travel trade show, typically convening 10,000 exhibitors from 180 countries (the ongoing
COVID-19 pandemic resulted in a virtual show in 2021). SWT and Port staff sent follow-up emails to each
participant with itineraries and other information.

Brand USA Global Marketplace, virtual, June 30, 2021
SWT promoted Washington to tour operators and retail sellers from 28 international markets at this virtual
marketplace. SWT and Port representatives conducted 14 business-to-business meetings. Follow-up emails
were sent to each participant with itineraries and other information. Sales leads were distributed to
Washington tourism industry travel trade representatives.

IPW Convention, Las Vegas, September 18-22, 2021
SWT promoted Washington virtually and in person at IPW. IPW is the largest inbound travel trade show, with
group tour buyers from across the globe meeting to do business with U.S. destinations and travel suppliers.
SWT held 34 in-person meetings and 19 virtual meetings. The SWT public relations representative met with 16
journalists and travel writers during the media marketplace. More than 100 follow-up emails were sent to each
participant, in addition to introductions to local DMOs, local tour operators and other potential partners.

National Tour Association Travel Exchange, Cleveland, November 14-16, 2021
The NTA’s annual conference features buyers of all specialties from across the U.S. and the world, who meet
with tour suppliers and DMOs to build partnerships, collaborations and sellable itineraries. SWT represented
Washington in 24 in-person meetings. More than 50 follow-up emails were sent to participants, as well as
introductions to local DMOs, local tour operators and other potential partners.

Go West Travel Exchange, Reno, February 14-16, 2022
SWT promoted Washington in person at the Go West Travel Exchange. The annual Go West conference
features buyers of all type and specialty from across the world who meet with tour suppliers and DMOs to


 COVID-19 TOURISM RECOVERY INTERIM REPORT                                                              11
build partnerships, collaborations and sellable itineraries. SWT held 32 in-person meetings held over two days.
More than 60 follow-up emails were sent to participants, as well as introductions to local DMOs, local tour
operators and other potential partners.

RTO Summit, Los Angeles, March 22-23, 2022
The RTO Summit connects destinations, hoteliers, attractions and tour operators with receptive tour operators
who help sell room nights and experiences internationally. SWT provided an incentive for local DMOs to bring
partners to the event. Three DMOs joined, creating opportunities for two extra hoteliers, an attraction and a
tour guide. SWT represented Washington in 25 in-person meetings. Over 50 follow-up emails were sent to
participants, as well as introductions to local DMOs, local tour operators and other potential partners.

London Sales Mission, March 28-April 1, 2022:
SWT joined the Port of Seattle and Visit Seattle as a delegation. The group hosted events for key tour operator
clients and media, and conducted sales and media calls throughout the city. The initiative was part of ongoing
industry recovery efforts in one of the destination’s primary overseas markets, with the intent to re-engage the
British travel trade through sales and media coverage.

The delegation promoted destination news, such as Sea-Tac's new International Arrivals Facility, Seattle
Homeport cruises, Washington wine, outdoor recreation, and diverse attractions and tours throughout the
state, in addition to promoting SWT’s newly launched destination brand. Delegation participants included
SWT’s David Blandford and Mike Moe; Port of Seattle Commissioner Fred Felleman and the Port’s Dave
McFadden, Patti Denny and David Yeaworth; and Visit Seattle’s Liz Johnson.

There were about 130 tour operators and media members. A schedule of tour operator sales calls were
conducted throughout the city. Broadcast media interviews included Skye News Radio, Share Radio, Talking
Feature Network and others, with a total combined audience of more than 25 million people. The London
mission press release was published in Selling Travel, the U.K.’s leading travel trade training magazine, which
is distributed to 26,000 travel trade professionals.

Overseas promotion
In addition to in-person and virtual meetings, SWT coordinated industry co-op advertising in the U.K. and
European trade journals. This reached key tour operators and retail travel sellers:

2022 Visit USA Travel Planner
Publication date: November 2021
Opportunity: Must Visit Feature. Six destinations showcased on one page with a photo and description.
Cost per partner: $1,200

Performance metrics
Annual state destination and county metrics
According to the SWT's annual report "Economic Impacts of Visitors in Washington State,"1 both tourism and
visitor expenditures in Washington increased dramatically since 2020. The report was released in April 2022




1 The full report is privately published. A press release summarizing it is available online.




 COVID-19 TOURISM RECOVERY INTERIM REPORT                                                              12
and is compiled by national travel research firm Tourism Economics. The report profiles annual visitor volume,
expenditures, tax generation, employment and other data for the state overall and its 39 counties.

Highlights for Washington include:

      Visitor volume increased 19.7% over 2020 to 95.3 million, indicating significant growth but still just 87%
       of 2019 levels.
      Visitor expenditures increased 36.2% to $17.7 billion, 81% of 2019 levels.
      Tourism supports 205,000 jobs (both direct and induced), an 8.7% increase over 2020. There were
       131,000 direct jobs.
      State and local tax revenue increased 27.6% to $2.4 billion, offsetting the average state household tax
       burden by $669 per year.

The data is compiled from a combination of survey data from Longwoods International, the Bureau of
Economic Analysis and Bureau of Labor Statistics by industry, STR lodging performance data, tax collections
including lodging tax receipts, U.S. Census Bureau data on business sales by industry and seasonal second
homes, and international travel data for overseas, Canadian and Mexican travel to the U.S. based on aviation,
survey and credit card information.

Out-of-state (non-resident) visitation
Out-of-state visitors bring new revenue into Washington. They are a central part of the state's tourism
attraction strategy. Their contributions to the state's economic recovery include a multiplier effect as visitors
tell others about their experiences in the state and tend to spend more money than in-state residents on visits.

      According to tabulations by Tourism Economics, 47% (44 million people) of the total annual domestic
       visitor volume in Washington in 2021 was from out of state. The breakout was compiled from survey
       and other statistical data assembled in the creation of "Economic Impacts of Visitors in Washington
       State" for calendar year 2021.
      Hotel guests spend twice as much as visitors staying with friends and family, and 1.5 times more than
       vacation rental guests. According to Tourism Economics, these statistics indicate an important
       opportunity for destination marketers to attract out-of-state overnight visitors who stay in hotels and
       allocate trip expenditures on dining, shopping, entertainment, recreation, culture, transportation and
       other activities.




 COVID-19 TOURISM RECOVERY INTERIM REPORT                                                              13
Appendix A: Campaign samples
Following are examples of the campaigns executed through June 2022.

New website (stateofwatourism.com)




 COVID-19 TOURISM RECOVERY INTERIM REPORT                             14
Explore Washington Passport Campaign




 COVID-19 TOURISM RECOVERY INTERIM REPORT   15
True to Nature branding example




 COVID-19 TOURISM RECOVERY INTERIM REPORT   16
Appendix B: Actual and projected budget spend
Washington Tourism Alliance Grant Agreement
Through Office of Economic Development and Competitiveness (OEDC)
#22-73103-001


Pursuant to Engrossed Substitute Senate Bill 5092, this one-time FY 2021-23 $12 million grant agreement
covers marketing and communication services related to the recovery of tourism-related businesses,
generating tourism demand for Washington communities and businesses, recovering market share with
competing Western states and providing written reports to the legislature. Funds under the contract are made
available and are subject to Section 601(a) of the Social Security Act, as amended by section 5001 Coronavirus
Aid, Relief, and Economic Security Act (CARES ACT), and Title V and VI of the CARES Act. The Department of
Commerce uses $400,000 of this total grant as an administrative fee.

This grant of federal funds is separate from the statutorily funded $3 million per biennium state general funds
through the Washington Tourism Marketing Authority (WTMA), which provides base funding for programs and
operations. These funds are derived from 0.2% of sales tax proceeds from lodging, restaurants and rental cars
in the state. According to statute, these funds must be matched 2:1 by non-general funds to access the state
general funds; non-general fund matches may be cash or in-kind.

The contracts for #22-73103-001 and the WTMA base funding are performance based, rather than expense
reimbursement, and require the same deliverables in the FY 2021-23 biennium.

State of Washington Tourism (legal name Washington Tourism Alliance), the nonprofit marketing organization
contracted to administer the statewide tourism program, procures income from non-general funds from
multiple sources each year, including:

      Domestic marketing program revenue: advertising and research co-op programs with the state tourism
       industry
      International marketing co-op program revenue
      Partnership programs including a one-time recovery contract with Port of Seattle; web site advertising
       sales, tourism conference and other event sponsorship; publication revenue
      TREAD Map App partnership income: county sponsorship, advertising and other
      Travel trade program revenue: trade show registrations and other

During the #22-73103-001contract period, State of Washington Tourism maintains five FTEs that are
supported by its state base funding and private funding. These FTEs are necessary to establish and maintain
statewide operations and programming. The office operates virtually to mitigate operational costs.

Operational and administrative costs associated with maintaining the program include office supplies,
insurance and licensing, taxes and tax preparation, postage, collateral, IT support and backup, storage facility,
on-line services, telephone/internet, industry memberships, travel around the state and other miscellaneous
necessary operational costs. Many of these costs increase in relation to work associated with fulfillment of
contract #22-73103-001.




 COVID-19 TOURISM RECOVERY INTERIM REPORT                                                               17
Year 1 expenditures: July 1, 2021 to June 30, 2022
Amount spent                     Medium/information on spend
Domestic marketing
                                 Consumer marketing campaigns
                                 Brand assets (video, photos, etc.), industry tool kit
$990,003
                                 Travel media campaign
                                 Destination publicity program/PR agency
                                 Expedia ‘Explore Washington’ campaign
$224,000                         Dates: June 2021-February 2022
                                 Target markets: Oregon, California, Idaho, Washington, Montana, Alaska
                                 Expedia co-op (SWT contribution, $50,000)
                                 Dates: March-May 2022
                                 Target markets: Top origin markets based on Expedia search/booking performance
$72,800
                                 Participants: Visit Seattle, Visit Vancouver, Seattle Southside, Okanogan Tourism
                                 Council, Visit Everett, Visit Tri-Cities

                                 Bandwango Explore Washington’s Backyard passport, social promotion and prizes
                                 Ongoing program encouraging responsible exploration of Washington’s outdoors
$25,760
                                 based on locations identified by local destination partners

                                 True to Nature pulse 1 paid media
                                 Dates: January-March 2022
                                 Markets: Oregon; Vancouver, Canada; California (San Francisco-Oakland-San Jose
$871,918                         Metro Area, Palm Springs Metro Area, Chico-Redding Metro Area, Santa Barbara-
                                 Santa Maria-San Luis Obispo Metro Area, Eureka Metro Area), Arizona, Idaho,
                                 Montana, Colorado

                                 Photo and video production (includes photo/B-roll shoots in each region of the
$594,001                         state, campaign photo and video)

                                 Retain creative advertising agency/rebranding
$388,883
                                 Retain PR agency for statewide pitching
$44,044
                                 Media hosting
$2,979
                                 Travel Bloggers Exchange conference sponsorship enabling familiarization tours
                                 around the state, staff attendance
$24,370
                                 Tri-Cities, May 2022

                                 Website redevelopment (additional $30,000 spent in August 2022 for work
$27,722                          completed during spring/summer)


$3,266,489 Subtotal: Domestic Marketing




International co-op marketing
                                 Co-op/industry ads and promotions in key markets
$66,693




COVID-19 TOURISM RECOVERY INTERIM REPORT                                                                   18
Amount spent              Medium/information on spend
Other marketing
                          Tourism conferences/webinars
                          Staff travel/industry events and programs
$49,500
                          Miscellaneous other marketing

Travel trade development
                          IPW Trade Show, Las Vegas
                          National Tour Association, Cleveland
                          Go West, Reno
$101,095                  RTO Summit, Los Angeles
                          UK Sales Mission, London
                          IPW Trade Show, Orlando

Destination Development Program
                          TREAD Map App development, statewide launch
$396,872
                          Rural Tourism Support program

Research and marketing data
                          Tourism Economics (Destination and 39 county reports, domestic and international
                          research)
$120,884                  Datafy mobile geolocation data including sponsorship for rural cities/counties
                          SMARInsights ad accountability

Administration/overhead
                          Miscellaneous operating expenses
                          Payroll
$341,597
                          Professional fees

Total Year 1 Proviso Expenditures
$4,343,121




COVID-19 TOURISM RECOVERY INTERIM REPORT                                                         19
Projected year 2 expenditures: July 1, 2022 to June 30, 2023
Amount spent                    Medium/information on spend
Domestic marketing
                                True to Nature pulse 2 paid media
                                Same markets
                                $2 million is needed for impactful reach in each major market (TV, out-of-home
$2,096,154
                                billboards, etc.) but with uncertain sustainable operating funds this level allows the
                                office to invest in other industry programs and assets that aid in recovery


                                Paid social and community management for SWT channels
$300,000


                                Paid search advertising and search engine optimization
$300,000
                                Industry co-ops (ex: statewide SEM co-op, future Expedia partnerships, video co-ops
$133,873                        to help destinations reach a wider audience with high quality content)

$200,000                        Passport program, incentives and marketing
$200,000                        TREAD Map marketing
$70,000                         DEI research
$60,000                         Paid content creator partnerships
$400,000                        Creative asset production for strategic marketing
$400,000                        Web content, photo and video production
                                Marketing contractor (graphic design, special web projects, strategic consulting,
$70,000
                                etc.)
                                Retain creative advertising agency and media buying agency (monthly fees for active
$600,705
                                travel publicity program)
$91,800                         Retain PR agency for statewide pitching
                                Media missions and tradeshows in key markets
$45,000
$15,000                         Media hosting (increased post-pandemic)
                                Website redevelopment, hosting and maintenance (focus on updates and added
$77,740
                                industry features/resources)
$5,060,282 Subtotal: Domestic Marketing


International co-op marketing
$120,000                        Co-op/industry ads and promotions in key markets
Other marketing
                                Tourism conferences/webinars
                                Responsible Outdoor Travel Summit
$250,000                        Staff travel/industry events and programs
                                Miscellaneous other marketing




COVID-19 TOURISM RECOVERY INTERIM REPORT                                                                      20
Amount spent            Medium/information on spend
Travel trade development
                        IPW Trade Show
                        National Tour Association
                        Go West
                        RTO Summit
$200,000
                        IPW Trade Show
                        UK/Germany sales calls
                        State branded trade show booth creation

Destination Development Program
                        TREAD Map App development, statewide program maintenance
                        Rural Tourism Support program (fall and spring curriculums)
$725,000
                        Industry grants


                        Destination Development grants to industry businesses and communities
$350,000

Research and marketing data
                        Tourism Economics (Destination and 39 county reports, domestic and international
                        research)
                        Datafy mobile geolocation data including sponsorship for rural cities/counties
$210,000
                        SMARInsights ad accountability
                        Additional dashboards that aggregate data for industry use and planning

Administration/overhead
                        Miscellaneous operating expenses
$341,597                Payroll
                        Professional fees
Total Year 2 Proviso Expenditures
$7,256,879




Total Biennium Expenditures
$11,600,000




COVID-19 TOURISM RECOVERY INTERIM REPORT                                                        21


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