Financing Your Efforts Tourism  

Posted by ahshan in

 In the past, and until that time, funding mechanisms for tourism organizations has remained the same since way back in history when someone figured out to get tourists to visit an area that was good for business and economics in this area.

Since then, tourism organizations, there were two ways to obtain funding for programs that were developed to achieve their goal of attracting more visitors and therefore money, on their territory.

The first tourism tested technique was to implement a fee to area businesses. It worked fine for a while and still works to some extent today. The fact that a company is a member of a Chamber or CVB assured that to some extent, the interests of this company is supported. The problem began when the techniques to attract visitors in an area that was more expensive ... In most cases, very expensive ... and labor costs began to rise as well. CVBS and rooms throughout the United States needed more money than the membership fee would bring in.

In order to continue efforts to attract tourists, CVBS and Chambers addressed to government funding. First, the local council and then the local county government and, finally, the state government. At that point, it seemed that things were really good!

And it was very good for a while!

I will talk about West Virginia, because I have first hand knowledge of what happened here in the Mountain State for many years. West Virginia is far from unique! All 49 other states have similar funding for the processes of the republic ... and similar, if not worse, problems.

Although West Virginia was one of only six states throughout the Republic is not the budget deficit, the state government has had to cut 50% of the tourism dollars! If you are a professional traveling to West Virginia, there goes half your budget!

The same cuts are happening across the country.

So when you grind up the nose and think about this.

You can not suddenly start paying more for their membership ... the economy in your area just do not let that happen. If costs are rising business ... and you know you are ... What can be done to justify charging more business to be a member of the SE or the room? What would be your reaction if you do not have their contribution by 50%?

You know the answer to this question! You suddenly much less members. So no financing technique to increase your membership money will not work.

Now think about the financial engineering of the government. If you see how many increases to support your organization will do next year? How about 2 years from now? 5 years? Please be aware that funding levels will not rise any time soon!

Chances are, things do not improve the economic status of the Republic, or the time for many years. BUT, chances are good that the costs of marketing and advertising to attract visitors to the region do not intend to reduce but to increase!

So there you go. For the vast majority of us are traditional sources of funding seems pretty bleak for the near future. What are your plans for the "lean years" that comes to everyone in the tourism sector?

I know there are some that are out there saying, "Our state government funding will not allow much sightseeing!" I just heard the other day!

When times were good and had a lot of money, I agreed with him. But times are not good and the money was not much longer ... at least the money comes in. We all have a lot of money promised to come out every year. Funds pledged for Medicaid, the public sector workers, pensions, infrastructure, among others, that each country faces.

If you think the state budget makers will be reduced by Medicaid, public employee pensions and infrastructure to give more money tourism organizations, so please bring me a lollipop when you Candyland tour is over!

Not gonna happen!

You can not cancel your membership and you can not expect the state to give you more money, but the new programs ... Heck, it's just the same old programs you use now ... all costs increasing all the time.

Well, what are you going to do? Just hide your head and hope that the organization can do this through a difficult time? Do only the smallest organization can afford, and I hope that visitors to the area, however, you will need?

This is probably a more significant question: Do you think that the techniques used in your organization right now, or plan to use in the near future are valuable and worth the money they are spending on them?

If you think the techniques you use or plan to use is good, useful, and will work for your area, how will you pay for them? This is the real question! How will you pay for them?

Here's a novel idea: instead of going to your local area businesses and begging for more money in fees or go to your state government with hat in hand begging for more money, how 'bout your organization earn money?

"We make money the old way, we win!"

Now I'm not talking about fundraisers, banquets, bake sales or selling cookies! You are welcome to do anything, anything you want.

I speak with much needed services to business growth businesses in your area.

Tell me ... in your area know the needs and problems of business owners more than you and your employees? You know what they can afford, and especially what they can not pay. You know the problems and successes they face every day. You are the industry experts!

Here's another: Who in your area ... unless you are Microsoft or Apple or Google in your area ... More efficient use of the Internet that you or your staff? Using marketing techniques on the Internet every day and very effective!

Why not offer Internet-based services for businesses in your area for office? You know your problems and what they want ... I say that every time you see them. Who better to do "things on the Internet" for them?

I'm not talking about building websites or hosting sites for them. These services take a lot of specific training programs and specific equipment / do things right. FURTHER, the gain on the websites too far into the future to be of any immediate help to business owners in your area.

This entry was posted on Sunday, September 25, 2011 at 7:00 PM and is filed under . You can follow any responses to this entry through the comments feed .

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