Would RI Tourism Account Be an Economic Spark?
Friday, August 28, 2015
Who will win the state's five million tourism account -- and who will serve to benefit?
Of the five other New England states, only one -- Maine -- uses an out of state agency for their tourism advertising; all other use in-state firms to drive their marketing efforts.
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URI Professor of Economics Len Lardaro said he did not see the award of the tourism account -- if it goes to a Rhode Island firm -- as providing an economic catalyst.
"If this is how we generate jobs, then we're in trouble," said Lardaro. "$5 million might sound like a lot, but it's a small state acting small. Rhode Island has an image issue. We're known more for high unemployment than beaches and quality of life I don't care if this campaign goes to firms in state or out of state-- we need to clean our image first."
As GoLocal wrote in July, a number of Rhode Island firms had applied to the RFP, but one of Raimondo's top advisors is a Rhode Islander -- who happens to be with a prominent New York firm.
And if the Commerce Corporation goes out of state, sides are split on its implications.
"It's the perception that we don't have the right stuff in RI to do the job. That sends a bad message both internally and externally," said Steve Maciel with "Keep it Local," if a Rhode Island firm doesn't get the accont. "And once again, we'll have some outside firm trying to define who we are."
Lardaro said it was "going outside the state," however, which has been one of the strengths of Raimondo Administration so far.
"One of the best things the Governor has done is bringing in people from out of state -- because you need people who are immune to the ways thing get done here here," said Lardaro.
Tourism Spending
According to the administration, the tourism campaign is intended to be part of the WAVE effort unveiled earlier this year, identifying "growing economic opportunities in Rhode Island."
"We will develop a compelling brand for our state and deploy our resources across various media. We aim to turn heads, change minds, and drive decisions—all with the goal of presenting Rhode Island as the best place in New England to vacation."
As recently as fiscal year, 2013, the state was only spending just over $700,000 in on tourism. While the $5 million is a significant increase, as far as economic development, however, Lardaro -- and others, including Michael Mota with Atom Media -- thought that the $5 million wasn't nearly enough to scratch the surface.
"You're looking at a spend of $5 million for a state whose GDP is $55 Billion," said Lardaro. "For it to have any impact, we would need a tight system, then maybe the $5 million might work. But we need to address inefficiencies. Where are the redundancies in the separate [tourism] agencies. And what about the one cent tax added to the sales tax [for tourism]? What sort of impact has that had? Has anyone taken a look?"
"We want to have a 'decentralized, centralized effort' - that's sort of like a silent proclamation. It doesn't make sense. I'm a fundamentalist -- you start from ground zero instead of jumping in middle," said Lardaro. 'I've got a slogan: 'We're not as screwed up as everyone thinks.' This might provide a better image to a grossly inefficient and redundant system. We need to address the underlying factors."
Related Slideshow: New England States’ Tourism Agencies
Who are the agencies that handle states' tourism advertising? Here's a look as of August 2015 -- they are all in-state except for one.
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