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Tourism promotion is an investment that provides a substantial return. Every dollar spent promoting tourism brings revenue back to the state.
Tourism is an Important Source of Revenue
- The overall total economic impact of tourism on the state's economy was estimated to be nearly $10 billion (direct, indirect and induced spending)
- In the last 6 years, rooms and meals spending has doubled to over $2.7 billion.
- Because tourism growth has been steady, it has been a hedge against more cyclical industries.
The State of Tourism in New Hampshire: It's Paying Off
- Tourism is a proven cornerstone of New Hampshire's economy. In FY05, $5.6 billion was generated in direct and indirect spending.
- Tourism spending represents 7.9% of the gross state product, and employs nearly 68,000 of the state's workforce.
- The Meals and Rooms Tax is the second largest income generator for New Hampshire, raising $181,500,000 for the state's general fund in FY06.
- Nearly 20% of rooms and meals revenue ($36.1 million) is returned to local communities, directly supporting local businesses and jobs for New Hampshire residents.
The Division of Travel and Tourism: Proven Results
The Tourism Development Fund was established in FY02 at $2 million; today that fund stands at $2.2 million, meaning that only 1.4% of funds raised for the state are reinvested annually to promote future travel and tourism.
The Division of Travel and Tourism has been effective in its efforts and, with limited resources, has made many accomplishments including:
- Generating an $8.51 return on each dollar spent on tourism promotion, a 20 cent increase over FY04.
- Increasing earned media from $3 million in FY04 to $5 million in FY05. Projected figure for FY06 is $7 million.
- Generating over $1.5 million in value-added media in FY06.
- Increasing international web visits by an average of 31.5% across key markets including England, Germany, France and Ireland.
- Improving the number of International Guidebook requests by 7.48% from Canada and 59.13% from France.
- Influencing people to visit through promotion and fulfillment. Conversion studies show that 57% of DTTD inquiries generate visits to New Hampshire and approximately 50% of visitors are influenced to book a trip by DTTD promotional materials.
Reaching the Traveler of Today and Tomorrow
- Increase exposure among the emerging younger demographic market (18-24) without losing ground with current demographic markets (women 25-54 traveling with children and adults 50-69 traveling without children).
- Increase marketing in Canada where the exchange rate is favorable (visitors are more likely to stay longer and spend more) and mitigate potential impacts of a stricter border crossing policy.
- Increase demand during less traveled and shoulder seasons (e.g. spring) through targeted niche markets.
- Maintain strength and grow existing domestic markets (New York, Boston, Philadelphia) where competition is intense and the cost to penetrate is high.
- Work towards attracting small and mid-size meetings and conferences, an opportunity to fill rooms mid-week and increase rooms and meals revenue.
What Additional Funding Will Achieve
- Generate additional tax revenue through an increase in visitors and visitor spending.
- Attract new visitors and generate additional revenue by targeting niche markets (e.g. cultural heritage).
- Increase our competitive advantage. 41 U.S. states spend more on tourism promotion than New Hampshire, and many of their budgets are augmented by CVBs.
Click here to download a pdf version of Tourism Facts.
Thousands of New Hampshire citizens depend on tourism for their livelihood. The chart below shows tourism's staggering impact on a variety of New Hampshire's businesses.
Click here to see how tourism dollars are spent.
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