Michigan Lodging and Tourism Association

MI Occupancy Gains Continue - MLTA News You can Use

2011-06-21T06:08:00.000-07:00

Michigan Posts Continued Strong Occupancy Gains

Led by strong results in Metro Detroit and Ann Arbor, and in spite of a cooler and wetter May than usual, Michigan occupancy gains continue to outpace the U.S. average. The May report from Smith Travel Research also shows improvement YTD RevPar as compared to the rest of the nation. More...

State Per Diem that Remains Unchanged for 10 Years

MLTA continues to advocate for an increase in the Per Diem lodging rate for state employees. The longstanding rate continues to be $65 which when adjusted for inflation is just over $51. MLTA will be meeting with Department of Technology, Management & Budget staff to present a PowerPoint presentation outlining the problems caused by a Per diem that has not changed in over a decade.

View the Per Diem presentation here. (PowerPoint not required)

Staff Changes

MLTA says good bye to Operations Coordinator Lindsay Weismiller who will be relocating to Farmington Hills to join her husband who recently graduated from Wayne State Medical School. Lindsay spearheaded many positive changes in our operations and helped grow the Pure Michigan Governor's Conference on Tourism to the premier event that it has become. Our best wishes to Lindsay, husband Mark and son Bryce!

Joining MLTA's staff is Kylie Binns, who left her position as Convention Services Manager for the 320 room Hyatt Lisle just outside of Chicago to join our staff. Kylie is a 2010 graduate of The School of Hospitality Business at MSU where she was on the Deans List for all eight semesters. Kylie brings unique training and experience to her new position and we look forward to working with her in service to our members and greater industry.

FINALLY! OPTIMISM ON MICHIGAN'S ECONOMY!

2011-05-20T11:52:00.000-07:00

After a decade of mostly pessimistic news, economists gathered for this week's annual Revenue Estimating Conference in Lansing and said the latest figures show Michigan's 10-year recession has finally ended and the economy is growing strongly.

The state is on track to erase the heavy losses it saw after the national economy plunged in late 2008. However, it will be many years before the state can regain the immense losses it took over the past ten years.

"Our view is that the Michigan economy is in the early stages of a sustained recovery," said George Fulton, director of the University of Michigan Research Seminar in Quantitative Economics.

Economists agreed on a projected unemployment rate of 10.2 percent for this year, 9.8 percent for 2012 and 9.5 percent for 2013.

The consensus agreement on job growth was 66,000 this year, 39,000 in 2012 and 48,000 in 2013. The conference also agreed that personal income would grow by 4.9 percent this year, 2.9 percent in 2012 and 4.4 percent in 2013.

Mr. Fulton said one significant change has come in the profitability of the "Detroit Three" automakers, which are again moving toward 16 million in vehicle sales. Ten years ago, with vehicle sales at 17 million, General Motors, Ford and Chrysler made little profit. But now, after Ford's cost-cutting measures and GM and Chrysler going through bankruptcy, 16 million in vehicle sales is leading to solid profit.

Michigan is home to 24 percent of the U.S. auto industry and 43 percent of the "Detroit Three" automakers' capacity. He noted that while the "Detroit Three" closed 14 plants between 2008 and 2010, only one was in Michigan.

Register Today for the 2011 Pure Michigan Governor's Conference!

2011-02-22T07:21:00.000-08:00

What is a reciprocal agent and how can they bring more European travelers to your destination or property? Find out on Tuesday afternoon at the Pure Michigan Governor's Conference on Tourism!
Governor's Conference 2011
www.milodging.org
Only one month away - register today!

Downtown Development Panel-Monday, March 21st

2011-02-18T09:16:00.000-08:00

After hearing from Roger Brooks Monday morning of the Pure Michigan Governor's Conference, discuss firsthand accounts of downtown development stories right here in Michigan. Panelists include: Ray Minervini, The Village at Grand Traverse Commons, Wendy Dant-Chesser, head of Cornerstone Alliance, Benton Harbor and a Bar......ry Murray, the Dearborn Economic Growth Corporation. Register for the conference today!

Sue Hershkowitz Coore to present at Pure Michigan Governor's Conference

2011-01-27T11:57:00.000-08:00

Sue Hershkowitz-Coore is presenting Power Sales Writing, How to Say It to Sell It! Monday, March 21st at the Pure Michigan Governor's Conference. This day long sales seminar is perfect for hotel, CVB and Chamber of Commerce sales professionals. Sue will look at ways to make your lodging property or destination more profitable, professional and productive through improved communications. Register today for the Pure Michigan Governor's Conference!

Roger Brooks Keynote Speaker at 2011 Conference!

2011-01-05T08:45:00.000-08:00

Roger Brooks will be the opening keynote at the 2011 Pure Michigan Governor's Conference on Monday, March 21, 2011. As the founding member of the award-winning Destination Development International team, Roger Brooks has assisted more than 800 communities with their branding, tourism and marketing efforts. Presenting o...n the Art of Branding a Community, this session demystifies & explains that process. Visit www.milodging.org/conference for complete conference details including the full schedule of events, speaker bios, or to register today!

Grassroots Alert! Go to the Phones and Email ... NOW!

2010-11-29T11:57:00.000-08:00

This is it.

The fate of this year's winter Pure Michigan campaign - and possibly next year's summer campaign too - will be determined in the next few days by the Lame Duck Michigan Legislature.

We need the entire state - all tourism segments and all employees (not just owners and managers) to send emails and make phone calls to first their State Senator and then to their Representatives. We need the calls to start immediately because the Lame Duck Legislature is only scheduled to hold three more session days before it legally expires on Dec. 31.

If your schedule is too tight and you can only make one phone call, contact your State Senator!

It is especially important that we generate many calls to Senators who represent districts with ski resorts, snowmobile trails, and/or summer attractions.

Click below to get contact information for your State Senator and Representative;

Find my State Senator.

Find my State Representative.

Send them the following email or state the following in your phone call.

______________________________

1. My job and my family's economic future rest on tourism outcomes.

2. If you fail to fully fund Pure Michigan before leaving for the year, the winter tourism season will not be promoted and tourism outcomes will be depressed.

3. A vote for full funding of Pure Michigan supports continued growth of our industry and more jobs and tax revenues. Lack of legislative action on funding will kill that growth and could cost me my job.

4. You've always told me that you support Pure Michigan.

5. Will you speak out in caucus meetings and urge leadership to allow a vote to be taken on funding for this year's campaign?

6. Can I count on you to demand continued funding for Pure Michigan before the lame duck session ends? Will you help me fight for my continued employment?
_____________________________

Let's get after this like we never have before.

Make it happen ... NOW!

Michigan's Tourism Economy

2010-11-11T06:56:00.000-08:00

Prepared by Dr. Dan McCole, Michigan State University
September 2010

Michigan’s economy is currently among the weakest in the nation. Between 2000 and 2010, Michigan lost almost 20% of its jobs and, as a result, is the only state in the US to have lost population over that period. As of June 2010, the state’s unemployment rate was 13.2% and with the exception of a 0.6% rise in Real GDP for 2005, Michigan’s GDP has shrunk every year since 2003.

Beginning in the late nineteenth century, North America’s post-agricultural economy was dominated by manufacturing and the most prosperous regions were located near natural resources (i.e., minerals, waterways and ports). In the Great Lakes region, iron ore from Michigan and Minnesota were shipped to mills that used coal from Ohio and Pennsylvania to make the steel that was used in the factories of “the industrial Midwest”. Probably the best example for the Midwest’s industrial strength was the auto industry. During the postwar automobile boom, the US auto industry, based out of Michigan, dominated the world markets, accounting for a little over two thirds of the world’s automobile production in the mid 1950s. As a result, Michigan’s population grew and its residents, both white and blue collar, enjoyed years of prosperity.

As a global economy began to take hold, however, and manufacturing costs increased in the US and Canada compared with developing countries, those countries abdicated their manufacturing thrones and transitioned to economies driven by the service sector. Michigan however, was slow to make this transition. In fact in 2000, manufacturing as a percent of Michigan’s Gross State Product was nearly twice that of US GDP (22% vs. 12%). Despite this imbalance, Michigan’s economy at that time fared well. At the beginning of 2000, the state’s unemployment rate was 3.3%. However, its over-reliance on manufacturing could not be sustained.

Since 2000, Michigan has lost almost a million jobs representing about 20% of its total, and median household income in the state has dropped by over $12,000! Although job growth normally picks up quickly during an economic recovery (especially in manufacturing sectors), this has so far not been the case this time around and few economists, (if any) are predicting that the lost Michigan jobs will come back anytime soon. At the University of Michigan’s annual conference on the Economic Outlook in November 2009, the director of the research seminar was asked when Michigan’s economy would return to the average of the rest of the US. He responded that “One of the rating agencies said it would be thirty years, and I think that is optimistic.” Perhaps he is right. As an example, General Motors(GM) had more than 386,000 employees in 2000. In 2010, it has 205,000. And although the company has increased manufacturing lately, GM has shifted production from North American facilities to ones overseas to pick up the slack. Although GM has emerged from bankruptcy and seems prepared to be more competitive moving forward (the company posted a $1.3 billion dollar profit for the 2nd quarter of 2010), its plans, unlike in previous recoveries, do not call for the recovery of Michigan manufacturing jobs.

The changes to Michigan’s economy over the last 10 years appears to be a permanent shift, rather than a long downturn on the verge of recovery. That said, Michigan seems to have recognized this shift, and if recognizing a problem is the first step in solving it, Michigan might be planting the seeds of a new, less auto-centric, economy. Policy makers and investors alike are touting Michigan’s excess manufacturing capacity and expertise, to make a case for Michigan to become the unofficial capital of green technologies. Unfortunately, other regions around the US, and in fact around the world, are vying for the same claim. Michigan certainly has to overcome significant challenges if it is to be known for green technologies, but in addition to manufacturing capacity, and transportation infrastructure, it has other advantages. Wind power is a good example. In addition to transportation, fisheries, drinking water, hydro-electric power and recreation, the Great Lakes offer great winds. Because the transportation of wind turbine parts is unwieldy and expensive, companies investing in Great Lakes wind farms might find it in their best interest to source their parts locally.

Although the manufacturing of green technologies might ultimately provide some level of boost to manufacturing in Michigan, it is unlikely to change the fact that North America is now dominated by the service and knowledge economies. Much has been written about how the centers for the knowledge economy need not be located near minerals and ports as with manufacturing. Instead, knowledge centers will be located in places knowledge workers find desirable to live. Could Michigan become such a place as it tears down its factories and industrial parks, and rebuilds communities better suited to attracting these workers? That remains to be seen, but the region does seem to have desirable locations people choose to visit.

For decades, Michigan has supported a thriving tourism industry; however, that tourism has been largely regional. For example, 70% of the people traveling around the state are from Michigan and more than 20% of the remaining tourists are from adjacent states and Ontario. Although this ratio served the travel industry well when the Michigan population was flourishing, the population is now smaller than it was 10 years ago (despite a 9% increase in the US population during that time) and those who have remained are in worse financial shape than in years past. As a result, Michigan tourism spending was down almost 20% in 2009 from 2006 and the tourism industry has accepted that if it is to survive, it must attract out-of-state residents to Michigan. Not only can an increase in out-of-state tourists make up for Michigan’s diminished population, but out-of-state tourists are also a more lucrative market, spending an average of 35% more per day than in-state tourists. Attracting out of state tourists presents a challenge because the image non-Michiganders have of the state is not necessarily a positive one. Michigan is not a “pass-through” state; that is, few people drive through it on their way to somewhere else. Moreover, the national media coverage of Michigan in the past several years has focused on negatives and likely left a less than desirable image of the state in people’s minds. Stories about closed factories, high unemployment, the auto industry bankruptcies and bailout, and Detroit’s myriad problems including its mayor’s arrest and conviction, have certainly not helped the state’s image. Even the Detroit Lions football team, which has won only two games in the past two seasons, seems to reinforce the image of Michigan as a loser state.

In 2006, in part to counter that negative image, the Michigan legislature increased the funding for the promotion of Michigan Tourism buy from $5.7 million to $13.2 million. With the additional funding, Travel Michigan, the state’s travel promotion organization, created the Pure Michigan campaign which has received numerous awards for its success in promoting Michigan’s tourism “product” and changing the image of Michigan in the eyes of out-of-state residents. In 2009, the Legislature increased funding to $30 million, enabling Pure Michigan to be expanded to a national campaign for the first time in state history. Interestingly, the campaign has identified residents of southern US states as one potential market for Michigan summer vacations. The reason for this is that in states where high temperatures and humidity make the outdoors almost unbearable between May and September, Michigan, with its comfortable temperatures, 3,200 miles of coastline, sandy beaches, clear lakes and myriad recreational opportunities, offers a respite from the heat and a vacation experience that Michigan residents have long been enjoying.

Whether or not Michigan is successful in re-shaping its image and drawing in out-of-state tourists remains to be seen. But like with its eventual recognition that it needs to be less reliant on the auto industry, Michigan has recognized it has an image problem, knows it needs to look to new markets and has begun to do something about it. In other words, despite the prediction of a 15 year recovery for Michigan, initiatives now being implemented could shorten that time if they are successful.

End Notes
U.S. Census Bureau (2010). American Community Survey 2009 estimates [Data file]. Retrieved from http://www.census.gov/acs/www/
Bureau of Labor Statistics. (2010). Local area unemployment statistics [Data file]. Retrieved from http://data.bls.gov/PDQ/servlet/SurveyOutputServlet?data_tool=latest_numbers&series_id=LASST26000003
Crary, J. P., Fulton, G. A., & Grimes, D. R. (2009, November). The Michigan Economic Outlook for 2010-2011. In G. A. Fulton (Conference Director), Research Seminar in Quantitative Economics. Seminar conducted at the Economic Outlook for 2010, Ann Arbor, MI.
Breshnahan, B. F. (1987). Competition and collusion in the American automobile industry: The 1955 price war. The Journal of Industrial Economics, 35 (4) 457-482.
Adelaja, S., (2010, August). The new economy and the green movement: Implication for the valuation of real estate. Presented at the 2010 Conference of the Michigan Association of Assessors, Lansing, MI.
Bureau of Labor Statistics.
Crary et. al.
U.S. Census Bureau
Gilson, S. C. (2010). Restructuring at Delphi Corporation. In Corporate restructuring: Case studies in bankruptcies, buyouts and break-ups (pp. 651-688). Hoboken, NJ: John Wiley & Sons.
General Motors Inc. (2010). Company profile. Retrieved from http://www.gm.com/corporate/about/ company.jsp
Herschmeyer, M. (2010, August 25). The incredible shrinking GM: $12 billion in real estate gone
Ibid.
Bureau of Labor Market Information and Strategic Initiatives. (2009). Michigan green jobs report 2009: Occupations & employment in the new green economy. Retrieved from http://www.milmi.org/ admin/uploadedPublications/1604_GreenReport_E.pdf
For example Adelaja
Michigan Tourism Industry Planning Council (2007). Michigan Tourism Industry Strategic Plan.
Shifflet, D. K. (2010). Michigan Travel Volume and Spending. Costar. Retrieved from http://www.costar. com/ news/Article
Ibid

Bed Bug Resource & Task Force Update

2010-10-15T11:50:00.000-07:00

There are a variety of online resources to help lodging operators deal with possible bed bug outbreaks. We suggest you bookmark the following sites.

Bed Bug Treatment Resources
The Michigan Manual for the Prevention and Control of Bed Bugs is regarded as this nation’s best, most comprehensive online manual to assist in the identification, treatment and eradication of bed bugs.

This online manual was developed by a special industry/government task force under the guidance of the Michigan Department of Community Health. MLTA has served on this task force which is comprised of state and local government, as well as private sector representatives.

Some other online resources include Bedbugger.com and Bed Bug Registry. The Educational Institute of the American Hotel & Lodging Association has developed an excellent DVD for staff training entitled Bed Bugs: Facts and Prevention.

Bed Bug Task Force Update
At a recent task force meeting, it was reported that 75% of bed bug outbreaks occur in apartment complexes, 22% take place in private homes and only 2-3% occur in lodging properties. MLTA recently described a summary of possible bed bug legislation (that was distributed but not yet reviewed by Michigan’s Bed Bug task force) as a “model bill.” We’ve been asked to clarify that this was not the case. The summary of possible legislation was put together by an intern and should be considered simply as a “wish list” of possible legislative proposals if such an approach is taken next session.

We apologize for any confusion this may have caused. However, MLTA has and will continue to express concerns regarding automatic inclusion of lodging properties in any mandatory legislative approach. Given the public relations impact of any outbreak, lodging properties have always been extremely proactive in dealing with any reports of possible bed bugs. Here’s a link to the “wish list” of possible legislative proposals to address the problem of bed bug outbreaks.

We’ll be offering a special break out session to assist lodging operators in dealing with the growing problem of bed bugs at the Pure Michigan Governor’s Conference on Tourism, March 21-22 at the beautiful Radisson Plaza Hotel in Kalamazoo. Save the date!

MACVB Pursues Passage of SB 1515 to Amend PA 59

2010-10-15T11:49:00.001-07:00

The Michigan Association of Convention & Visitor Bureaus (MACVB) has initiated legislation that would amend the statutory cap on the room assessment from 2% to 5%.

SB 1515 was introduced by Senator Patricia Birkholz, (R-Saugatuck) on September 28th and was referred to the Senate Committee on Commerce & Tourism. No hearings have been scheduled on the bill at this time.

MACVB has distributed talking points to allow CVB directors to answer typical questions that might arise. If enacted into law, any increase in a CVB’s assessment would still be subject to a referendum of local hoteliers.

It is unclear at this point what impact, if any, the bill might have on the Pure Michigan funding issue. At its June meeting, MLTA’s Board voted unanimously to adopt a position of neutrality on this legislation unless consideration of the bill presents a clear and obvious threat to full and permanent funding of Pure Michigan. MLTA will also oppose the legislation if it is amended to redirect funds to purposes other than local community destination marketing.

Smoking Ban and Marijuana Raises a Stink for Hotels

2010-10-15T11:46:00.000-07:00

It was only a matter of time before the smoking ban and medical marijuana smoke would mix, causing consternation for guests and possible litigation exposure to lodging property operators.

Following is an excerpt of an email MLTA received this past week.

We had a guest staying in the hotel that was smoking his medicinal marijuana and had his card. We told him to stop, and initially charged a $100 cleaning fee for his room, as stated on his registration card. He threatened a lawsuit, etc, etc.

I need assistance in finding out what we can and cannot do. We do not want anyone smoking anything in any of the guest rooms, but cannot afford the cost of getting attorneys involved. Can MLTA shed any light on this situation?

This is a situation that we predicted would come into play as the two statutes are in apparent conflict. Here are just some of the implications of allowing medical marijuana (MM) cardholders to smoke in your guest rooms.

First and foremost, MLTA suggests MM cardholders be required to sign an agreement by which they agree to cover all costs of bringing the room back to non-smoking condition.

However there are additional implications to adopting such a policy.

* The policy must be applied non-discriminately to all MM card holders.
* If credit card companies side with MM card holders for disputed cleaning charges, unbudgeted costs could escalate to unacceptable levels.
* When the marijuana smell wafts into the hallway, other guests (especially families with school-aged children) will likely complain.
* Additionally, (non-medical) marijuana smokers may attempt to take advantage of the situation and light up under the "aromatic cover" of the MM cardholder's activity.
* After smoking marijuana in their room, what's to prevent the MM cardholder from smoking a cigarette? After all, the room already smells, and in their impaired state they might not be worried about breaking the tobacco ban.
* Then there's the provision of ashtrays, etc. Do you really want a MM card holder smoking in a room without ashtrays? How many pinholes will appear in upholstery, bedding, etc. if you don't?
* Unfortunately, if you provide smoking materials like ashtrays in hotel rooms or other public areas, you are in direct violation of the tobacco ban.

There are almost always unintended consequences to any new law. This is especially the case with two statutes that attempt to govern behaviors that are so similar in nature.

Following is an excerpt from MLTA’s Innkeepers’ Legal Guide. The guide includes information on a broad array of legal issues which lodging operators typically face including state regulation, taxation, innkeeper liability and dozens of other topics. The 118 page guide is made available free of charge to all MLTA member properties.

Does Michigan’s Smoke-Free Law prohibit guests of hotels, motels, and other lodging facilities from smoking medicinal marijuana even if those guests hold a valid medicinal marijuana card pursuant to Michigan’s Medicinal Marijuana law?

There is an inconsistency between these two statutes. This is because Michigan’s Smoke Free Law prohibits a person from using tobacco products in public places, restaurants, and places of employment. It does not specifically identify medicinal marijuana as a “tobacco” product that is prohibited from use in accordance with the provisions of Michigan’s Smoke-Free Law. This inconsistency is likely to become ripe for court interpretation, adjudication, and remediation in the future.

What does the Michigan Smoke-Free Law prohibit?

The smoking ban prohibits smoking in “public places”. “Public places” are now defined as an enclosed indoor area owned or operated by a state or local governmental agency and used by the general public or serving as a meeting place for a public body, including an office, educational facility, home for the aged, nursing home, county medical care facility, hospice, hospital long-term care unit, auditorium, arena, meeting room or public conveyance.” MCLA Section 333.12061(q)(i). They are further defined as an enclosed, indoor area that it not owned or operated by a state or local government agency, is used by the general public and is any of the following: a) an educational facility; b) a home for the aged, nursing home, county medical care facility, hospice or hospital long-term care unit; c) an auditorium; d) an arena; e) a theater; f) a museum; g) a concert hall; or (h) any other facility during the period of its use for a performance or an exhibit of the arts. MCLA Section 333.12061(q)(ii). It further prohibits smoking in any place of employment. MCLA Section 333.12061(q)(iii).

Blanket Prohibition on Smoking of any kind may be advisable

At the present time, operators of a lodging facility (in an attempt to minimize any and all liability under Michigan’s Smoke Free Law) should consider employing an overall ban on all products that emit smoke, whether the same be cigarettes, cigars, pipes, or medical marijuana.

Inevitably lodging property operators will face a large number of questions and concerns to which there are no simple answers. However based upon a review of the statutory language of both laws; a blanket prohibition on smoking of any kind may be the best course of action. While there are no guarantees, it’s possible that adoption of a blanket ban on smoking will lessen the possibility operators will be threatened with litigation.

None of the above should be considered legal advice, but is instead offered as an exploration of various policies (and their implications) that you might adopt. Lodging property owners seeking such legal advice should contact a qualified attorney. MLTA recommends our association counsel, Stark Reagan PC.

Our Industry's Future is at Risk - Pure MI is the Key!

2010-08-18T06:08:00.000-07:00

The State of Michigan has set aside only $5.4 million for Pure Michigan for the new fiscal year which begins on October 1st. If that doesn’t change, Travel Michigan will be forced to issue three press releases.

• The first, issued in mid-September will announce the cancellation of the Pure Michigan fall campaign.

• In mid-October a second release will be issued announcing the cancellation of all Pure Michigan winter ads.

• And if the Legislature fails to act prior to December 31st, Travel Michigan will announce the end of the national campaign and the collapse of Pure Michigan from 13 regional markets to just a handful.

At that point, our industry will be forced to almost exclusively rely on the Michigan resident base for tourism outcomes. However, with a loss of over 1 million jobs, that base can no longer generate revenues as it did in the past.

How can this be avoided?

• Help us raise the funds necessary to fight for full funding by supporting MLTA’s Government Affairs Golf Outing. Register to play or sponsor a hole by clicking here!

• Register to attend the Michigan Lodging and Tourism Legislative Conference (co-sponsored by the Michigan Snowsports Industries Association) on Wednesday, September 22nd at the Radisson Hotel, Lansing.

• View brief videos which explain three special MLTA initiatives designed to help our industry win full and permanent funding for Pure Michigan.

We intend to do everything possible to win this fight. Please help provide the manpower and resources necessary to prevail. As always, we are stronger – together!

Pure Michigan Campaign Brings Home Record Four Mercury Awards!

2010-08-13T05:59:00.000-07:00

Please see text of press release issued by Travel Michigan below.

CONGRATULATIONS TRAVEL MICHIGAN!

This is pretty much unparalleled - We've never heard of a single state winning so many awards in one year!

This will generate great momentum as we work to win full and permanent funding for Pure Michigan either in September or in lame duck!

Steve Yencich, CAE
President/CEO, Michigan Lodging and Tourism Association

For Immediate Release Contact: Dave Lorenz, 517-243-3073
August 11, 2010 Kirsten Borgstrom, 517-331-3433

Pure Michigan Campaign Wins Top Awards
US Travel Association Honors Pure Michigan with Four Awards

Lansing, MI - And the winner is.Pure Michigan, the state of Michigan's official travel and tourism campaign. The Pure Michigan campaign brings home a record four Mercury Awards, Best State Tourism Television Commercials, Best State Tourism Radio Commercials, Best State Tourism Co-op (Partnership) Program, and Best State Tourism Welcome Center Program, from the recent ESTO Conference.

"We are absolutely thrilled and honored to receive four Mercury Awards, in recognition of the Pure Michigan campaign, from our colleagues and competitors within the tourism industry," said George Zimmermann, Vice President of Travel Michigan, a business unit of the Michigan Economic Development Corporation.

These four awards join the other Mercury Awards the campaign has already received including Best State Tourism Advertising Campaign (2007), Best State Tourism Television Commercials (2007), and Best State Tourism Radio Campaign (2008), Best State Tourism Radio Advertising (2009) and Best State Tourism Niche Marketing (2009).

The Pure Michigan tourism campaign ran national for the second year on cable channels including: Golf Channel, Travel Channel, A&E, Bravo, Style, Fine Living, HGTV, Food Network, TLC, E!, DIY Network, CNN, MSNBC, CNBC and Fox News. Due to reduced funds adjustments were made to the regional and in-state campaigns.

"There are millions of Americans who know little or nothing about the vibrancy, heritage, culture, arts and entertainment in our great cities, our sandy beaches and stunning overlooks along America's longest fresh-water coastline, or the majesty and recreation in our 19 million acres of magnificent forests," Zimmermann said. "The Pure Michigan campaign is designed to introduce to the nation the attributes that make Michigan such a popular and unique destination."

The inaugural Pure Michigan national advertising campaign in 2009 motivated 680,000 new trips to Michigan from outside the Great Lakes region and resulted in more than $250 million being spent at Michigan businesses. For every dollar spent on the Pure Michigan national campaign, new visits to Michigan stimulated by that advertising generated $ 2.23 in new state tax collections.

The Mercury Awards is a program created by the National Council of State Tourism Directors to recognize its members for excellence and creative accomplishment in state tourism marketing and promotion, and to inspire the continued development of truly imaginative and exciting destination marketing and promotion programs.

The Birmingham, Michigan office of McCann Erickson developed the strategy and creative for the Pure Michigan campaign. The campaign is intended to entice out-of-state travelers about one place that still feels magic, mythic, authentic, untamed, unspoiled, uncompromised, timeless and true. The Pure Michigan campaign can be viewed/listened to online at michigan.org/travelads.

Travel Michigan, a division of the Michigan Economic Development Corporation, is the State of Michigan's official agency for the promotion of tourism. Travel Michigan markets the state's tourism industry and provides valuable visitor information services. For Michigan travel news and updates, go to michigan.org.

McCann's midwest office in Birmingham, Michigan creates advertising and integrated marketing communications for Travel Michigan; Saab Automobile USA; General Motors Corporation (Corporate Advertising); Chevrolet Global; Colonial Williamsburg; Michigan Credit Union League; and a variety of other clients. McCann Worldgroup is the world's largest multinational advertising agency system, with operations in 131 countries. It is part of the Interpublic Group of Companies, Inc. (NYSE: IPG). To find out more about McCann Erickson, visit its Web site at www.mccann.com.

# # #

National Exposure for Pure MI in USA Today!

2010-08-09T06:51:00.000-07:00

Click here to see the article appearing in today's USA Today about our state's tremendous Pure Michigan campaign.

Right now, Pure Michigan's budget for 2011 is just $5.4 million. We must work together to get a vote on full and permanent funding ($30 million) for Pure Michigan.

You can help by simply cutting and pasting the link to the article and emailing to candidates for state office in your area. Or put the link on the candidate's Facebook page for others to see.

Spread the word and help us make Pure Michigan a part of the campaign conversation. The more Pure Michigan is talked about, the better our chances will be!

http://www.usatoday.com/news/nation/2010-08-09-1Astateimage09_CV_N.htm

Webinar: DOL Audits Targeting Hotels - Offered free to all MLTA-AH&LA Members!

2010-07-12T10:53:00.000-07:00

MLTA is pleased to announce the availability of a webinar (free to all dual MLTA/AH&LA member Properties) to help you deal with the upcoming U.S. Department of Labor audits targeting all lodging properties nationwide.

If your property has 51 rooms or more and you’re a member of the MLTA, you are also automatically a member of the AH&LA. The webinar is free.

If your property is 50 rooms or less membership in the AH&LA is optional. If you pay $255 in dues, you’ve opted for state (MLTA) membership only. If you pay $370, you have opted for dual MLTA/AH&LA membership. The webinar is free.

If you are not a member of MLTA, the cost of the webinar is just $99.
Learn how the Department of Labor’s (DOL) new regulations will impact you and your property during this Webinar:

Labor Department Targeting Hotels for Audits: Be Prepared Webinar

Wednesday, July 28
2-3:30 (EDT)

Free for members; $99 for nonmembers

Newly enacted regulatory strategies by the federal government are targeting hotels and their employees, that could lead to increased federal enforcement actions, class and collective action lawsuits, and union organizing should the industry not live up to these new standards.

Learn how to comply and make sense of the recently-announced "Plan/Prevent/Protect" regulatory and enforcement initiatives by the U.S. Department of Labor (DOL) during this practical Webinar.

Topics include new challenges and best practices around:

How your property will be impacted by increased enforcement• H-2B seasonal visa holders

Safety and health initiatives, including ergonomics

OFCCP audits

Wage and hour investigations, including exempt status and independent contractor classification

Presented by national law firm Ogletree, Deakins, Nash, Smoak and Stewart, P.C., you’ll hear from a panel of labor attorneys who work with AH&LA members on an ongoing basis and can answer your toughest questions.

Register online or by downloading this form.

Please direct any questions to Tara Allen at tallen@ahla.com or (202) 289-3171.

If you’d like to join MLTA and AH&LA contact Steve Yencich at our Lansing office via phone at 517.267.8989 email stevey@milodging.org or click here to join us today!

Multiple State/Federal Legislative/Regulatory Issues Threaten your Lodging Property

2010-07-01T08:28:00.000-07:00

In recent weeks, multiple threats to your property have arisen from both the state and federal government. Things are moving quickly enough that we thought we should inform you in as concise a manner as possible.

1. 911 Multiple Phone Line Regulations

MLTA is involved in the draft rules-making process towards regulations requiring all end users with multiple phone lines (hospitals, dormitories, apartments, hotels, retirement homes, etc) to have systems which show the specific location (room number) of any 911 call going into a dispatch center. The statute and corresponding rules must take effect no later than December 31, 2011. Left untouched, these regulations could force every property with a phone system older than 2007 to replace those systems or face up to $10,000 in fines.

MLTA will be requesting an exemption to these requirements for any lodging property which has technology that already notifies the front desk of the location (room number) of any 911 call going out from the building. We’ll also ask for an exemption for any existing phone system that lacks the technology to handle such an enhanced 911 call. Such properties would be required to comply the next time they replace their phone system.

2. State Audits for Sales Tax Charges for Room cleaning under two Circumstances (Smoking & Pet Dander)

The State is taking the position that sales tax should be assessed by any hotel for cleaning of rooms that have been smoked in, or in which an unauthorized pet was kept. At this point we’re aware of only one hotel that is facing an audit for these services. The hotel had not assessed sales tax for what they thought were “services.” State Treasury is taking the position that the use tax already covers a number of cleaning and maintenance services that are automatically provided any hotel guest, (i.e. housekeeping, plumbing, HVAC repair). Under a worst case scenario the hotel could owe the state four years of back taxes. This could have industry-wide implications.

3. State Audits for Proper Documentation provided by Charitable Organization not charged Sales/Use Tax

The State and federal government are both strapped for cash and are taking a much more aggressive stance in enforcement of existing tax laws and regulations. It appears likely that State Treasury is going to more zealously enforce requirements for proper documentation of charitable groups that held events or function at properties in which they were not charged sales/use tax. If audited, a hotel lacking proper documentation on file from the 510(c)(3) organization, could find itself in the position of owing up to four years of sales and use tax under such scenarios. This could have even greater industry-wide implications.

Our association counsel is preparing a concise memo, summarizing these two issues (numbers 2 and 3) along with possible remedies which we’ll provide to all MLTA member properties.

4. Federal Audits of all Lodging Properties by Department of Labor

This was previously outlined in a grassroots email issued last week which can be read by clicking here.

5. Possible Anti-Trust Exposure arising from Industry Practice of “Call Arounds.”

This was outlined in an email transmitted last week which can be reread by clicking here.

Such issues all hitting at the same time threaten to overwhelm our small staff and ability to keep up. The membership and support provided by your property strengthen our ability to effectively represent your interests as we tackle these important issues.

Connecticut Attorney General shuts down Industry Practice of "Call Arounds"

2010-06-25T06:13:00.000-07:00

It’s a common practice in some destinations across the country whereby hotel staff will call other properties to check occupancy levels and rates. However, MLTA recently learned that such “call arounds” are coming under increased scrutiny by a variety of state attorneys general.

The AGs believe such phone calls can be “a potentially anticompetitive practice in which competing hotels exchange current room rate and occupancy information that can be used to fix prices.” Such activities can be judged to be a per se’ violation of state or federal anti-trust laws.

Here’s an excerpt from recent news article in which Connecticut Attorney General, Richard Blumenthal, characterized his action as "a wake-up call to the entire hotel industry -- signaling that ‘call-arounds’ to set room prices are illegal and must be stopped."

Read the entire article by clicking HERE.

You can also read the actual press release issued by Connecticut’s Attorney General to learn more.

MLTA suggests that you proceed with caution if you are considering engaging in this practice. While we understand that this practice might be legal, and under certain circumstances is clearly legal, we believe that it can create serious risks and that it is inadvisable to engage in this practice without the advice of legal counsel.

In short, when dealing with state or federal anti-trust laws, it is better to be safe than sorry!

GRASSROOTS ALERT! Lodging Industry Targeted By Department of Labor

2010-06-23T07:26:00.000-07:00

Lodging Industry Targeted By Dept. of Labor
Urge Your Members of Congress to Demand End to Assault

Washington, D.C., June 21, 2010 – The American Hotel & Lodging Association (AH&LA) and the Michigan Lodging and Tourism Association have learned that the U.S. Department of Labor (DOL) is planning an initiative that specifically targets every hotel, motel and resort in the United States for audits by the department’s Wage and Hour Division. This is a federal threat arising from Washington DC.

Without contacting AH&LA or providing any justification, DOL has labeled the lodging industry as a “high-risk industry” where violations of federal wage and hour laws are most likely to occur. The department has chosen to consider employees in the lodging industry as “the most vulnerable workers” in the country. As a result, you will be subject to a DOL audit, covering all of your employees.

Despite the lack of contact by DOL, AH&LA learned of the department’s plans and is currently seeking more information from DOL on why the actions are being taken and attempting to further inform the department about the true nature of our industry and its practices.

We need you to contact your members of Congress today.

They need to hear from as many hoteliers as possible that these actions by the Department of Labor are not justified and that they need to contact the department on your behalf to insist that they be stopped.

It only takes two minutes to make a huge difference.

MLTA members with 51 rooms or more are automatically members of AH&LA and can immediately proceed to AH&LA’s grassroots website. Hoteliers can contact their House and Senate lawmakers by taking action through AH&LA’s hotelLOBBY grassroots Website. You can quickly send your legislators a short message stating your strong opposition to DOL’s actions and asking them to help.

MLTA members with 50 rooms or less are not automatically members of the AH&LA, but can still contact their members of Congress by clicking here. Fill out the form and a dialog box will open in which you can cut and paste the letter below. Even properties that are not members of MLTA should get involved by using the access point in this paragraph and the letter below.

______________________________________________________________________

Dear Representative or Senator (Last Name)

I have learned that the U.S. Department of Labor’s (DOL’s) Wage and Hour Division (WHD) is in the planning stages of a “Hotel and Motel Resort Pilot Initiative.” I understand that DOL has decided without justification to label the lodging industry (along with a few other selected industries) as a “high risk” industry and target hoteliers with audits, penalties, sanctions and other actions.

As a citizen, an employer and voter, I am outraged about this assault. Not only do I provide jobs to many workers, I pay them a good wage and benefits in a good working environment.

Despite the recession which has hit the lodging industry harder than most, I have struggled to keep as many of my employees on the job as possible. In doing so, I comply with all the burdensome federal laws and regulations that are mandated in order to provide those jobs.

DOL’s actions are an outright attack against me and my industry. I urge you to contact the White House and the Department of Labor and demand that they end their attack against the lodging industry and explain why they considered those actions in the first place.

I respectfully request that you please provide me with a copy of your correspondence to the Department of Labor and White House and their responses as soon as possible.

Sincerely,

(Your Name)
________________________________________________________________________

Whether it’s a threat in Lansing, or Washington DC, MLTA and AH&LA have got you covered. But we can do little if you don’t respond.

Unless you want a full blown audit by the U.S. Department of Labor – act today!

MLTA Government Affairs Update

2010-06-16T04:22:00.000-07:00

Michigan Lodging and Tourism Association

Serving the needs of Michigan’s Lodging & Tourism Industries….

Term Limits Impact to be Dramatic

On December 31, 2010 Michigan’s Governor, twenty nine members of the thirty eight member State Senate and thirty four members of the 110 member House of Representatives will be termed out of office. This represents a huge loss of institutional knowledge about Michigan tourism in general, and the importance of Pure Michigan funding specifically.

Amidst all the primary campaigns, and media coverage of partisan politics, MLTA is still actively involved in monitoring and acting on legislation affecting your future. Here’s a brief summary of legislative positions taken by MLTA’s Board of Directors at their June 10^th meeting:

Pure Michigan Funding remains Top MLTA Priority

Passage of legislation providing consistent annual state funding of at least $30 million for Pure Michigan continues to be MLTA’s topmost priority. At its June meeting MLTA’s Board embraced a proposal to keep the issue of Pure Michigan funding high on the Legislature’s list of priorities.

Michigan’s Constitution requires that the State’s budget be adopted on or before October 1, 2010. That means that our industry must keep this issue in front of the current legislators who will determine the 2011 budget for Pure Michigan. At the same time we must educate candidates on the issue of Pure Michigan funding who are running to replace termed-out policymakers at all levels. It is essential that we keep this issue in front of the media and the general public as well. To do that, we must work to make the issue of full and permanent Pure Michigan funding part of the conversation in all campaigns for Governor, Senate, or the House.

It is equally important that MLTA position itself to maintain and grow its current small base of members. All of this must be accomplished within the confines of MLTA’s limited financial and staff resources.

“Pure Michigan Mondays” to air on Major Radio Stations

To achieve this, MLTA’s Board voted to invest $10,000 and to seek industry partners to match this investment to buy radio ads designed to educate policymakers and build support for passage of legislation providing full and permanent funding of a year-round and nationwide Pure Michigan campaign. The ads will run on two of the state’s biggest stations and radio networks and will be produced by two of Michigan’s most well-known radio personalities. Stay tuned for additional news on this initiative. MLTA works creatively and tirelessly for you!

MACVB pursues legislation to amend PA 59

The Michigan Association of Convention & Visitor Bureaus (MACVB) plans to initiate legislation which would amend the statutory cap on the assessment from 2% to 5%. MACVB has retained a multi-client lobbyist and is in the process of securing a legislative sponsor for this proposed legislation. In recent weeks, MACVB has requested all member CVB Directors to approach their respective Boards of Directors to seek adoption of resolutions of support or neutrality on this proposed legislation. If enacted into law, any increase in a CVB’s assessment would still be subject to a referendum of local hoteliers.

MLTA’s Board voted unanimously to adopt a position of neutrality on this legislative proposal unless the legislation is amended to redirect funds to purposes other than local community destination marketing, or in such a way that would present a clear and obvious threat to full and permanent funding of Pure Michigan.

Great Lakes Bay Region’s CVB – HB 6206

The Saginaw County CVB, and the Midland and Bay County CVBs hope to merge operations and create a jointly-funded tri-county convention and visitor bureau. Legislation has been introduced to achieve this end. HB 6206 moves away from the bed tax approach originally proposed to legislation which authorizes Bay and Midland counties to increase their room assessments from 2% to 5%.

The legislation mirrors PA 59, 1984 with several exceptions: 1) It narrowly defines (by population) municipalities contiguous to a hotel tax county (PA 263) that appears to include only Bay and Midland Counties; 2) does not require a majority of innkeepers on their board of directors; 3) must have a full time CEO, two employees and 5 years of existence; 4) also defines ‘Director’ as the CEO of the MEDC; 5) defines transient lodging facility as having 2 or more rooms; 6) defines a 1.5% per month interest on overdue assessments and a 10% per month delinquency charge for assessments over 90 days. The proposed legislation does not appear to require a referendum by local hoteliers before going into effect.

MLTA’s Board unanimously voted that the association should adopt a position of neutrality on HB 6206 unless the legislation is amended to extend beyond its current limited geographic scope or in such a way that would present a clear and obvious threat to full and permanent funding of Pure Michigan.

SB 1204 - Public Act 82, 2010 was signed into law by Governor Granholm deleting the ‘fourth class city’ language from PA 59, 1984 and allowing the opportunity for Mackinac Island to create a 2% room assessment district. The Act further amends the reference to ‘Director’ being the Director of the (extinct) Department of Commerce and changing it to ‘President of the Michigan Strategic Fund’ which is the President of the MEDC (Greg Main).

Similar to the positions adopted above, MLTA took a position of neutrality on this legislation, and would have opposed the bill only if it had presented a clear and obvious threat to full and permanent funding of Pure Michigan.

Save the Dates!

Friday, August 27th

MLTA Government Affairs Golf Outing

Timber Ridge Golf Club

Wednesday, September 22nd

Michigan Lodging and Tourism Legislative Conference

Radisson Hotel, Lansing

Grassroots Alert! Act now or Regret Later!

2010-05-14T06:18:00.000-07:00

The Senate has begun work on the budget for 2011 and our industry must act immediately to protect our future. Specifically, the Senate has initially cut Pure Michigan funding for the State's 2011 fiscal year which begins October 1^st.

If unchanged, this will eliminate any possibility of Travel Michigan:

Marketing the 2010-11 winter sports season.

Engaging in a robust Pure Michigan national cable TV campaign for summer of 2011.

Marketing 2011's fall color season.

Here's a recap of where things stand at this point:

Last February, after supporting a $30 million campaign the year before, the Governor announced a $15 million budget for Pure Michigan for 2011. To make things even more uncertain, her proposal provides only $2 million in General Fund support for Pure MI and funds the rest with a $13 million car rental assessment proposal that cannot pass both chambers of the Legislature. Not the start we had hoped for.

Yesterday, after having established a precedent for $15 million in General Fund support for Pure Michigan's current budget, the Senate Appropriations Committee reported legislation out onto the floor that would provide Pure Michigan only $5.4 million for 2011. This comes after hearings and studies which demonstrate that every state dollar invested returns at least $2.23 - to as much as $5.34 in new sales tax revenues that otherwise would not be received. Again ... this is not a good start.

Click here to get contact information for your Senator!

Tell them to fund Pure Michigan at least at the same $15 million level they did for this year.

We will be back to you with additional information as it becomes available.

IMPORTANT!

Please note; we are transitioning away from exclusively communicating with you via email. In addition to email, we'll be communicating with industry supporters via Facebook, Twitter, video, and MLTA's new blog.

To participate in these first two venues, you must boldly step into the age of Social Media. Be brave! (It's where the market's heading anyway)!

Click here to establish your free Facebook account.

Click here to sign up and follow us for FREE on Twitter .

More expanded coverage of legislative issues affecting our future, events and other issues important to lodging and tourism business owners will be available by clicking on our new MLTA Blog .

We must make Pure Michigan funding a part of the conversation in every single election for the House, Senate and the Governor's race.

We need you to make that happen.

Let's get after this as we have before ... TOGETHER!

Peter Yesawich Opens the Pure Michigan Governor’s Conference on Tourism

2010-05-06T09:22:00.000-07:00

Peter Yesawich opened the Pure Michigan Governor’s Conference on Tourism today at the Grand Hotel on Mackinac Island with a very insightful presentation on the state of the travel industry. He talked to the capacity crowd about how technology and our social behaviors are changing the way consumers research and book travel.

Here are a few of the highlights:
- Consumers are using online Metasearch and spending more time looking for the best value
- 87% of travelers say that being able to check lowest fares/rates is the most important feature in a travel website.
- 61% of travelers go exclusively online to plan and research travel
- 1 out 5 online travelers go to blogs and review sites. 61% visit Trip Advisor and 24% go to YouTube for info.
- 16% of travelers have planned a trip as a result of an unexpected marketing email.
- Almost 30% of people in the United States "don't use" all of their vacation time.
- 48% of vacations happen over the weekend, therefore the geographic radius of travel opportunity is shrinking.
- Personalization is a new service model, consumers are willing to pay 20% more for a personalized product.
- A new trend, spas are opening in Airports to service delayed travelers.

These are just a few takeaways from the conference's opening session. To learn more about Peter, visit the website for YPartnership and read more on his blog.

Stay the Weekend and Visit the Top Spots on Mackinac Island

2010-04-29T18:50:00.000-07:00

We know you will be very busy at the Pure Michigan Tourism Conference this week, but we encourage you to get out and explore Mackinac Island. There is a great opportunity to do that post conference, courtesy of the Grand Hotel. They have extended the conference room rate to all attendees for the weekend. Please call the reservations line to check for availability, 906-847-3331.

There is no doubt that Mackinac Island is unique in its own way. As many of you know, the only source of transportation is by foot, horse, or bicycle! Mackinac Island is also considered the truly “all natural” theme park of America. The island vacation spot only enhances the vastness and beauty of Michigan. Blooming flowers, famous fudge, and the iconic Grand Hotel are only a few of the popular characteristics and destinations of the island.

When you visit Mackinac Island there are some key spots that you should not over look. We sourced a few popular reviews from Yelp.com and TripAdvisor.com, along with some content from the Mackinac Island Tourism Bureau and Pure Michigan web sites According to those outlets, here a few of the most popular places to visit on the island:

So while you're visiting charming Mackinac Island, be sure to explore it all so you don't miss out on all the exceptional treasures the island has to offer. We hope you enjoy your visit!

Tourism Owners Investment Forum at the Pure Michigan Governor's Conference

2010-04-19T13:01:00.000-07:00

Friday May 7th, owners and managers of all Michigan lodging and tourism businesses can register for this half day event. The event runs 2:00 pm - 5:00 pm.

This half day event includes our closing conference luncheon for just $50! All full Pure Michigan Governor's Conference registrants can attend this event...FREE!!

Generally considered a good barometer for overall tourism outcomes, Michigan has finished last in hotel occupancy levels for the past five years. That’s why the special focus on this first-ever event is presenting ways you can save and make more money in these challenging times.

During this year’s Investment Forum you’ll learn:

•Why your tourism investment has suffered so greatly in recent years and how you can improve future outcomes!

•Why 70% of commercial business owners are overpaying on their property tax.

•How to increase your investment income (fully insured) by as much as 30-70%!

•How to dramatically reduce or eliminate bank fees!

•How you can reduce your property tax assessment!

•How your business can earn interest on checking accounts.

Click here to register for the Tourism Owner Investment Forum!!

Power Selling Sales Seminar at the Pure Michigan Governor's Conference

2010-04-19T12:06:00.000-07:00

At this year’s conference we’re also adding a special full-day Sales Seminar which runs concurrent to Pure Michigan Governor's Conference events on Thursday, May 6th ! The full-day seminar runs 8:30am-4:00pm.

If your budget won’t allow you to send staff to the full conference – you can still position them for greater sales! But hurry – space is limited to the first 50 registrants! (This is a great option for properties and businesses near to Mackinac Island!!)

For $100 you can register your sales staff to attend “Power Selling – The 20% Solution and ‘Turning Over Small Stones,” presented by Carol Verret.

Carol Verret and Associates Consulting & Training provides training and consulting solutions in hotel sales, marketing, revenue management and customer service to clients both internationally and domestically.Since 1999, they have provided hotel sales training and consulting through seminars, consultations and web casts.

Full conference registrants can choose to either attend this full day sales presentation (8:30 am to 4:00 pm), or regularly scheduled conference events. And it includes a delectable luncheon with a four-star menu prepared by Grand Hotel’s finest … FREE!!!

Please Note: If you have registered for the full conference but would like to attend the Powering Selling seminar instead of regular Thursday’s programming, please contact Michigan Lodging and Tourism Association at (517)267-8989.

Click here to register your sales staff!

Pure Michigan - Making the Most out of Less

2010-04-17T08:39:00.000-07:00

PERSPECTIVE COUNTS! Did you know that if you placed one dollar on top of another, a stack of one billion dollar bills would reach 6 miles into the sky?

In the State's current fiscal year, the Legislature had to close a deficit that reached 18 miles into the sky. That's why MLTA is appreciative of the fact that (thanks to your support) we were still able to help pass legislation providing $15 million in funding for Pure Michigan this year.

George Zimmermann, his talented staff and the professionals at McCann Erickson have developed a plan to make the most out of this year's "half-a-loaf." Travel Michigan recently issued it's plan for this year's campaign. MLTA has re-posted the memo from George below.

We encourage you to read it and carefully consider its implications for your business. Then we're hoping you'll ask yourself what you're willing to help do to ensure we secure $30 million for Pure Michigan for the 2010/11 fiscal year which begins on October 1st.

Save the date for this year's Michigan Lodging and Tourism Legislative Conference, set for September 22, 2010 at the Lansing Radisson Hotel.

Following is George Zimmermann's memo.

To: Michigan Tourism Industry Leaders

As you probably are aware, the final budget for Pure Michigan promotion in 2010 was approved by the legislature and signed by the governor in late March. Our total appropriation for 2010 is $14.9 million, half of the $30 million that had been appropriated for Pure Michigan promotion last year.

We spent $19.4 million of our $30 million 2009 promotion budget on advertising buys for spring/summer, fall and winter, $10 million of that on national cable TV for spring/summer and $9.4 million for regional advertising for the three seasons. The rest of the promotion budget in 2009 was spent on other marketing-related activities, such as public relations, publications, production and agency costs, search engine optimization and pay per click for michigan.org, social media channels, etc. No staff or administrative costs are paid from the promotion budget; they are funded separately from other MEDC line items.

Given our reduced appropriation this year, we worked with our advertising agency, McCann Erickson, to produce a plan that will generate the best results at this much lower funding level. The choice came down to this: we either abandon the national advertising momentum we created last year with our first-ever national cable TV campaign and fully fund regional marketing, or we put as much into a national spring/summer campaign as we can afford to this year to keep that momentum going while drastically cutting regional advertising.

On McCann’s recommendation, we opted for the latter for the following reasons:

1/ Spring/summer is by far our biggest tourism season by both volume and visitor spending, and it is also the season with the most potential to attract more distant visitors from around the country.

2/ According to our ROI research of our 2009 national and regional advertising, visitors to Michigan from outside the Great Lakes region spent 37% more per trip than out-of-state visitors from within the Great Lakes region.

3/ Due to funding increases in recent years, we have had significant advertising buys in our key regional out-of-state markets consistently for several years. While we believe reducing our advertising in our regional markets will reduce the results from these markets, we don’t think a one-year reduction in activity will completely undo the momentum in these markets, especially since the national cable TV advertising will be seen in these markets in 2010. We do believe it is essential we be back in our regional markets at full strength in 2011.

4/ If we abandoned national advertising after only one year of activity in 2009, we and McCann believe the impact of that advertising on the national market will evaporate quickly, and that we will be forced to “start over” with the broader national audience in 2011, wiping out any momentum from last year’s national cable TV buy.

In order to make a national cable TV buy happen this year requires some drastic changes as compared with our fully-funded 2009 Pure Michigan promotion effort:

1/ We had already canceled winter advertising in 2009-10, after just one year of such advertising in

2008-09, due to lack of resolution on our funding earlier in the year.

2/ We are canceling fall advertising this fall for the first time in five years.

3/ We are canceling all regional spot TV advertising in 2010.

4/ We are canceling all in-state billboards in 2010.

5/ We are canceling all production of new TV commercials this year for airing in 2011, dramatically

reducing production costs for 2010.

With these cuts, our total advertising spend will be $12.8 million in 2010, as compared to $19.4 million in 2009. Of the $12.8 million we are spending on advertising this year, $8.9 million will be for the spring/summer national cable TV buy, $2.3 million will be for regional advertising – less than a third of what we spent last year regionally, and $1.6 million will be for our share of the partnership advertising we are doing with destinations all over Michigan. The small regional buy this year (radio and billboards) will help support the partner advertising in our regional markets, which is half funded by private sector tourism organizations around the state. We are honoring all commitments to advertising partners.

The national cable TV buy will begin airing the week of May 3^rd, the first week we could secure availability at a reasonable rate. We have three new TV commercials for the cable buy this year, commercials which were shot in 2009. The complete 2010 marketing plan will be presented at the Pure Michigan Governor’s Conference: Driving Tourism 2010, May 6 and 7, Grand Hotel, Mackinac Island. Click here to register for the conference:

http://www.milodging.org/node/1135

We strongly believe that maximizing both short term and long term growth in the Michigan tourism industry is directly related to attracting more distant visitors to Michigan, visitors who stay longer and spend more. And we know that there are tens of millions of Americans outside the Great Lakes region who know little or nothing about our outstanding, national-quality tourism product and have never even considered Michigan as a vacation destination. It is only through continued and consistent national advertising via our award-winning Pure Michigan campaign that we can reach Michigan’s potential to be recognized as one of America’s top vacation destinations. Maximizing that potential will result in millions of new visitors to the state who will spend billions of dollars at Michigan businesses, create thousands of new jobs and generate tens of millions of dollars in new state tax collections.

We remain optimistic that Pure Michigan will be fully funded at $30 million in 2011. If it is, we will be able to continue the national advertising we began in 2009 and will continue in 2010, while restoring the regional, winter and fall advertising which has produced such positive results in recent years.

I look forward to seeing you at the tourism conference in May!

George