Arizona Office of Tourism FY2021 – FY2022 …...100 N. 7th Avenue, Suite 400, Phoenix, AZ 85007...

Arizona Office of Tourism FY2021 – FY2022

Operating Budget Requests

Watson Lake, Prescott (Credit: Ben Olsen)

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SECTION ONE

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Debbie JohnsonDirector

HR & Operations

Mary Ellen KaneSr. Director of HR &

Operations

Giselle GalindoAdmin Services

Specialist

OPENProcurement

Technician

Finance

Laurie LemckeDirector of Finance

Josephine Cisneros

Budget Accountant

Renee LucciAccounting Coordinator

Research

Colleen Floyd Director of Research

Kari RobergSr. Research

Manager

Lena AllenResearch &

Marketing Mgr.

Communications

Josh CoddingtonPIO & Director of Communications

Kiva CouchonDirector of Industry

Affairs

Alix RidgwayDirector ofGov. Affairs

Alena HicksDirector Strategic

Partnership

Marketing

Tim DeClaireSr. Director of

Marketing

Jamie DaerDirector of Advertising

Tiana VelezDigital Marketing

Manager

Jordyn WalworthSocial Media

Marketing Mgr.

Diego CandoFulfillment Manager

Media Relations

Kim ToddDirector of Media

Relations

Marjorie Magnusson

Public Relations Mgr.

Travel Trade

Jessica MitchellSr. Travel Industry

Marketing Mgr.

Joanna TejedaTravel Industry Marketing Mgr.

Ashley LongmireTravel Industry

Events Mgr.

Dawn MelvinTribal Tourism Relations Mgr.

OPENTrade & Media

Specialist

Becky BlaineDeputy Director

Pamela ShandExecutive AssistantOrganization Chart

2020(Revised August 2020)

Division Directors

Support Team

Executives

Divisions

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100 N. 7th Avenue, Suite 400, Phoenix, AZ 85007 [P] 602.364.3700 [F] 602.364.3702 Douglas A. Ducey, Governor ♦ Debbie Johnson, Director

Business-www.Tourism.az.gov Travel Information-www.VisitArizona.com

41-2306. Tourism fund(Caution: 1998 Prop 105 applies)

A. The tourism fund is established consisting of separate accounts derived from:

1. State general fund monies appropriated to the fund by the legislature. All monies in thisaccount are continuously appropriated to the office of tourism for the purposes of operations andstatewide tourism promotion.

2. Revenues deposited pursuant to section 5-835, subsection B or C. All monies in this accountare continuously appropriated to the office of tourism, which, in consultation with a consortiumof destination marketing organizations in the county in which the tourism and sports authority isestablished, shall be spent to promote tourism within that county. For fiscal years 2010-2011and 2011-2012, fifty per cent of the revenues deposited in the tourism fund pursuant to thisparagraph may be expended by the office of tourism for operational and administrative purposes.

3. Revenues deposited pursuant to section 42-6108.01. The legislature shall appropriate allmonies in this account to the office of tourism, which, in conjunction with the destinationmarketing organization in the county in which the tax revenues are collected, shall be spent onlyto promote tourism within that county and shall not be spent for administrative or overheadexpenses.

4. Revenues deposited pursuant to section 5-601.02(H)(3)(b)(iv). The office of tourism shalladminister the account. The account is not subject to appropriation, and expenditures from thefund are not subject to outside approval notwithstanding any statutory provision to the contrary.Monies received pursuant to section 5-601.02 shall be deposited directly with this account. Onnotice from the office of tourism, the state treasurer may invest and divest monies in the accountas provided by section 35-313, and monies earned from investment shall be credited to theaccount. No monies in the account shall revert to or be deposited in any other fund, includingthe state general fund. Monies in this account shall supplement, not supplant, current funds inother accounts of the tourism fund. Monies in this account shall be spent only to promotetourism within the state and shall not be used for administrative or overhead expenses.

B. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing ofappropriations.

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41-2308. Special sporting events; promotion and marketing; report; appropriation; definitions

A. Beginning from and after June 30, 2021, the state treasurer shall pay from monies appropriated pursuant to this section one million five hundred thousand dollars per fiscal year, in twelve equal monthly installments, to the office of tourism for the purposes described in this section. The office of tourism shall deposit the monies in a separate fund and shall use the monies to promote and market a special sporting event at a host facility. On or before October 1 of each year, the office of tourism shall report to the joint legislative budget committee the amounts and purposes of all expenditures made pursuant to this subsection in the previous fiscal year.

B. The treasurer may make the payments prescribed in subsection A of this section if the special sporting event project cost incurred from and after December 31, 2016 is at least one hundred million dollars.

C. The host facility shall report to the joint legislative budget committee and the governor's office of strategic planning and budgeting that it has incurred the special sporting event project cost prescribed in subsection B of this section on or before December 31, 2020. The joint legislative budget committee shall certify the expenditures reported by the host facility.

D. If the requirements of subsections B and C of this section are met, the sum of one million five hundred thousand dollars is appropriated annually from the state general fund to the state treasurer for the purposes of this section beginning in fiscal year 2021-2022 and ending in fiscal year 2050-2051.

E. For the purposes of this section:

1. "Host facility" means a complex facility in this state that has fixed seating, that requires a ticket for admission for viewing a sporting event and that was chosen to host a special sporting event by a site selection organization through a competitive selection process that included consideration of at least one facility that is not located in this state.

2. "Special sporting event" means a sporting event that is sanctioned by a nationally recognized premier national auto racing series governing body that establishes an annual schedule of sporting events and grants rights to conduct the events, that has established and administers rules and regulations governing all participants involved in the events and all persons conducting the events and that requires certain liability assurances, including insurance.

3. "Special sporting event project" means:

(a) The acquisition of land subject to property tax in this state to construct a host facility for a special sporting event.

(b) The construction, reconstruction, improvement or renovation of improvements to land subject to property tax in this state of a host facility for a special sporting event.

4. "Special sporting event project cost" means the monies spent from and after December 31, 2016 by the owner of the host facility on the special sporting event project.

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REVENUE JUSTIFICATION

41-2306. Tourism fund (Caution: 1998 Prop 105 applies)

A. The tourism fund is established consisting of separate accounts derived from:

1. State general fund monies appropriated to the fund by the legislature. All monies in this account are continuously appropriated to the office of tourism for the purposes of operations and statewide tourism promotion.

2. Revenues deposited pursuant to section 5-835, subsection B or C. All monies in this account are continuously appropriated to the office of tourism, which, in consultation with a consortium of destination marketing organizations in the county in which the tourism and sports authority is established, shall be spent to promote tourism within that county. For fiscal years 2010-2011 and 2011-2012, fifty per cent of the revenues deposited in the tourism fund pursuant to this paragraph may be expended by the office of tourism for operational and administrative purposes.

3. Revenues deposited pursuant to section 42-6108.01. The legislature shall appropriate all monies in this account to the office of tourism, which, in conjunction with the destination marketing organization in the county in which the tax revenues are collected, shall be spent only to promote tourism within that county and shall not be spent for administrative or overhead expenses.

4. Revenues deposited pursuant to section 5-601.02(H)(3)(b)(iv). The office of tourism shall administer the account. The account is not subject to appropriation, and expenditures from the fund are not subject to outside approval notwithstanding any statutory provision to the contrary. Monies received pursuant to section 5-601.02 shall be deposited directly with this account. On notice from the office of tourism, the state treasurer may invest and divest monies in the account as provided by section 35-313, and monies earned from investment shall be credited to the account. No monies in the account shall revert to or be deposited in any other fund, including the state general fund. Monies in this account shall supplement, not supplant, current funds in other accounts of the tourism fund. Monies in this account shall be spent only to promote tourism within the state and shall not be used for administrative or overhead expenses.

B. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

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$950,000 Revenue Justification for TO2500 – Interagency Service Agreement Fund In FY20, the Office of Tourism set up an ISA fund TO2500 in order to accept revenue from several different state agencies for two new projects the agency took on. The Arizona Complete Count Committee Governor Ducey issued Executive Order 2019-04 4/1/19 forming the Arizona Complete Count Committee for the 2020 US Census. The Office of Tourism Agency Director Debbie Johnson was appointed Chair of the CCC. In conjunction with the Governor’s Office that accounted for the WIOA Federal Grant funding, the Office of Tourism received $100,000 in funding from the following 5 state agencies whose missions supported Tourism's outreach & education activities about the importance of the census.

Agency Amount ISA signed

Transfer sent

Funding Received

Department of Health Services $25,000.00 9/20/19 9/24/19 9/24/19

Department of Housing $12,500.00 9/20/19 9/24/19 9/26/19 Department of Child Safety $25,000.00 9/20/19 9/24/19 9/24/19 ADOT $25,000.00 12/18/19 12/18/19 12/18/19 Department of Public Safety $12,500.00 9/23/19 9/24/19 9/27/19

Agency Total $100,000.00

Arizona REAL ID The REAL ID Act of 2005 (Public Law 109-13, 199 Statute 302) required that beginning October 1, 2020, every air traveler needed a real ID-compliant credential or another acceptable form of identification for domestic air travel. As part of the State of Arizona’s commitment to ensure that all citizens were informed of this requirement, the Office of Tourism and ADOT collaborated in the production of a public marketing campaign. The Office of Tourism received funding of $850,000 from ADOT for this marketing campaign. Due to COVID-19, the deadline was postponed and the campaign will resume in FY2021.

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100 N. 7th Ave, Suite 400, Phoenix, AZ 85007 ♦ [P] 602.364.3700 [F] 602.364.3702 Douglas A. Ducey, Governor ♦ Debbie Johnson, Director

Business - Tourism.az.gov ♦ Travel Information - VisitArizona.com

PROPOSITION 302

MARICOPA COUNTY TOURISM PROMOTION PROGRAM

FISCAL YEAR 2021

• AWARD ALLOCATIONS • PROGRAM GUIDELINES

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FY2021 Proposition 302 Maricopa County Program Tourism Promotion Program

Destination Marketing Organization (DMO)

Dept of Revenue % of Gross Hotel

Sales Taxes Calendar Year

2019

Projected FY21

Allocations

City of Avondale .505% $21,397.35

City of Chandler 4.427% $187,635.04

City of Glendale 2.405% $101,920.04

City of Peoria 1.068% $45,265.23

City of Surprise 1.276% $54,100.53

Greater Phoenix CVB 44.329% $1,878,862.78

Mesa CVB 6.959% $294,956.75

Scottsdale CVB 25.010% $1,060,027

Tempe CVB 8.368% $354,668.33

Town of Fountain Hills .382% $16,205.03

Town of Gilbert 1.547% $65,573.86

Wickenburg Chamber of Commerce 2.518% $106,735.49

Totals for DMO's (90%)

$4,187,347.41

Arizona Office of Tourism (10%) $465,260.82

GRAND TOTAL for DMO's & AOT $4,652,608.23

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Arizona Office of Tourism 100 N. 7th Ave., Ste. 400

Phoenix, AZ 85007 (602) 364-3697

Fiscal Year 2021 Proposition 302 Maricopa County Marketing GUIDELINES

Due Date: Applications must be received by AOT no later than 4:00 p.m. Friday, May 29, 2020

These documents supersede all guidelines issued for any previous fiscal year Proposition 302 marketing program.

OFFICE LOCATION Arizona Office of Tourism 100 N. 7th Ave., Ste. 400 Phoenix, AZ 85007 Attention: Tim DeClaire Agency Contact Tim DeClaire Senior Director of Marketing Telephone Number: 602.364.3704 Fax Number: 602.364.3702 E-Mail: [email protected]

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ARIZONA OFFICE OF TOURISM (AOT)

PROPOSITION 302 MARICOPA COUNTY MARKETING PROGAM

Purpose In 1999 voters approved the Proposition 302 initiative, which includes funding to promote tourism in Maricopa County. Funding is derived over a 30 year period from a car rental surcharge and a 1% tax on hotels in Maricopa County. In accordance with A.R.S. § 41-2306, A2 and A3, revenues are deposited pursuant to Title 5, Chapter 8, Article 2,section 5-835, subsection B or C and Title 42, Chapter 6, Article 3, section 42-6108.01. All monies in this account are continuously appropriated to the office of tourism, which, in consultation with a consortium of destination marketing organizations in the county in which the tourism and sports authority is established, shall be spent to promote tourism within that county. Arizona Revised Statutes, Chapter 19, Article 1 41-2306. Tourism fund (Caution: 1998 Prop 105 applies) A. The tourism fund is established consisting of separate accounts derived from: 1. State general fund monies appropriated to the fund by the legislature. All monies in this account are continuously appropriated to the office of tourism for the purposes of operations and statewide tourism promotion. 2. Revenues deposited pursuant to section 5-835, subsection B or C. All monies in this account are continuously appropriated to the office of tourism, which, in consultation with a consortium of destination marketing organizations in the county in which the tourism and sports authority is established, shall be spent to promote tourism within that county. For fiscal years 2010-2011 and 2011-2012, fifty per cent of the revenues deposited in the tourism fund pursuant to this paragraph may be expended by the office of tourism for operational and administrative purposes. 3. Revenues deposited pursuant to section 42-6108.01. The legislature shall appropriate all monies in this account to the office of tourism, which, in conjunction with the destination marketing organization in the county in which the tax revenues are collected, shall be spent only to promote tourism within that county and shall not be spent for administrative or overhead expenses. 4. Revenues deposited pursuant to section 5-601.02(H)(3)(b)(iv). The office of tourism shall administer the account. The account is not subject to appropriation, and expenditures from the fund are not subject to outside approval notwithstanding any statutory provision to the contrary. Monies received pursuant to section 5-601.02 shall be deposited directly with this account. On notice from the office of tourism, the state treasurer may invest and divest monies in the account as provided by section 35-313, and monies earned from investment shall be credited to the account. No monies in the account shall revert to or be deposited in any other fund, including the state general fund. Monies in this account shall supplement, not supplant, current funds in other accounts of the tourism fund. Monies in this account shall be spent only to promote tourism within the state and shall not be used for administrative or overhead expenses. B. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

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TABLE OF CONTENTS

Eligibility 1 General Project Requirements 1 Application Procedure Guidelines 2 Approval Process Guidelines 7 Project Development Guidelines 8 Project Modification and Withdrawal Guidelines 10 Expense Reporting Guidelines 10 Failure to Comply 12 Further Assistance 12 Appendix A 13 Amendment for FY21 14

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Arizona Office of Tourism Proposition 302 Marketing Program Guidelines FY2021 1

Applicants should read and be familiar with the entire Arizona Office of Tourism Prop 302 Maricopa County Marketing Program Guidelines before submitting an application to AOT. Deadline extensions will not be granted. Failure to provide application and expense reports by dates indicated in sections 3.5 and 7.5 will jeopardize current year funding allocations and any future funding. Funding for Prop 302 is contingent upon the approved FY2021 budget for the Arizona Office of Tourism. A reduction in the budget may result in a reduction to Prop 302 marketing funds. 1. Eligibility

A. Independent DMO/Community

All applicants must meet ALL requirements listed directly below to be eligible for Proposition 302 funding:

• Applicants must have the established designation as the Destination Marketing Organization (DMO) for a city or town within Maricopa County. A DMO is defined as the primary governmentally-designated unit responsible for the tourism promotion/marketing of a destination on a year-round basis.

• The DMO must have been in existence for at least one (1) year prior to the current funding year. • The applying DMO must have a tourism marketing budget of at least $123,000 for FY2021, excluding

administrative costs and exclusive of funds anticipated from this marketing program.

B. Regional Co-operatives

Maricopa County communities that do not meet the above requirements may partner with an eligible DMO to submit a Prop 302 Maricopa County Marketing Program regional co-operative application. A community is defined as a city or town that has tourism product (for example a hotel) but is not the DMO.

Organizations submitting a regional co-operative (co-op) application must meet all of the additional requirements listed directly below:

• The applying co-op DMO’s must have a tourism marketing budget of at least $123,000 for FY2021. This does

not include represented community budgets and excludes administrative costs, and funds anticipated from this marketing program.

• Promotional efforts must represent projects benefiting each participating community. Co-op applications must identify community representation for each activity and project in the Prop 302 application.

• Co-op applicants must form an advisory consortium with representation from each participating organization. Members of this advisory consortium shall work together to determine how co-op dollars are used.

• Regional co-op applicants shall submit a letter from the mayor or city/town manager on official letterhead from each co-op participant expressing the desire of the community to participate in the co-op.

2. General Project Requirements To qualify for funding, projects must meet both of the following requirements;

• The primary function of the project must be tourism promotion. Tourism promotion is defined as the intent to drive overnight visitation to a respective community.

• Qualifying projects are limited to marketing programs over and above programs that existed in FY2001.

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3. Application Procedure Guidelines

This section of the Guidelines provides a step-by-step guide for submitting the Prop 302 Maricopa County Marketing Program application. Divide the application into three (3) sections, labeled A through C, as detailed below. To facilitate the application review process, please submit your application in an organized, easy to read format.

3.1 SECTION A - Applicant Administrative Information 3.1.1 Name of Applicant Organization: The name of the applicant organization must be the same as it appears on the

FY2021 Affidavit in Support of Application (Appendix A). Regional co-op applicants must list each member of the co-op and their contact information (to include email) to ensure that all members are copied on correspondence.

3.1.2 Mailing Address: Provide a mailing address that can be used by AOT for routine correspondence.

3.1.3 Physical Address: Provide a physical address (no P.O. Boxes) for deliveries.

3.1.4 Project Coordinator’s Name, Title, Telephone Number, Fax Number and E-mail address (If any of this information changes, inform AOT immediately): The project coordinator is responsible for administering the project and will be the day-to-day contact for AOT. This individual is also responsible for submitting all the necessary documentation throughout the yearlong effort of this project and must be familiar with the specifics of the program as well as the application being submitted.

3.1.5 Funding Amount: Indicate the amount of funding for which the applicant is requesting Prop 302 Maricopa County Marketing Program funds.

3.1.6 Signatures: Applications must bear the signatures of the project coordinator and the administrative official (the person authorized to verify the applicant’s marketing budget). Two different signatures are required for processing. The signatures on the application certify compliance with all Prop 302 Maricopa County Marketing Program Guidelines.

3.2 SECTION B - Project Element Guidelines

In this section of the application, list all the projects for which the applicant will be requesting Prop 302 Maricopa County Marketing Program funding. For each type of project, provide the details specified below. Indicate if the project is new (new as of FY2021), expanded (expanded from programs that existed in or previous to FY2001) or ongoing (continuous Prop 302 projects). For tracking and evaluation purposes identify the type of activity measures, performance measures and productivity metrics. Use the examples on pages 3-6 as a guide for each project request.

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3.2.1 Print Placement (magazines and newspapers) Specify the name of the publication, the size of the ad and color, the issue date, the distribution, circulation number and the budgeted cost. Remember to include the type of activity measures, performance measures and productivity metrics that will be used to determine the effectiveness of the project. See example below.

Publication

Name Ad

size/color Issue date Distribution Circulation

Number Budgeted

Cost Types of Metrics Status

Golf Magazine ½ P, 4C Jan 2020

Western Region 275,000 $8,000

Activity Performance Productivity

New Expanded Ongoing

3.2.2 Broadcast Placement (radio and television)

Specify the station call letters, the designated market area (DMA), the length of the spot and frequency (number of times spot will run), the broadcast dates and the budgeted cost. Remember to include the type of activity measures, performance measures and productivity metrics that will be used to determine the effectiveness of the project. See example below.

Station Call

Letters DMA Spot Length/ frequency Broadcast Dates Budgeted


KKQR Seattle :60/30 Feb 6 – 17 $ 3,000 Activity Performance Productivity


3.2.3 Outdoor Placement (billboard, busboards, wallscapes)

Specify the type of outdoor placement, the location, size, dates of display and the budgeted cost. Remember to include the type of activity measures, performance measures and productivity metrics that will be used to determine the effectiveness of the project. See example below.

Type of Placement Location Size Dates Budgeted


Billboard I-10 10’ x 40’ Nov 15 – Dec 15 $2,500 Activity Performance Productivity


3.2.4 Digital Media

Specify the name of the site, the website address, a description of the type of ad (e.g. banner ad, link, sponsorship, mobile application), the website’s target market, the dates and the budgeted cost. Remember to include the type of activity measures, performance measures and productivity metrics that will be used to determine the effectiveness of the project. See example below.

Name of Site Website Address Ad Description

Target Market Dates Budgeted


Expedia www.expedia.com Banner ad New

York 10/1-10/31 $5,000



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http://www.expedia.com/

http://www.expedia.com/


3.2.5 Website Development/Enhancement (for tourism related sites only) This section is to be used for your community/DMO’s website. Please note that the Prop 302 Maricopa County Marketing Program funding is available for sites that feature tourism related material only. In this table, you must list the name of your website, the website address, a description of the project and the budgeted cost. Remember to include the type of activity measures, performance measures and productivity metrics that will be used to determine the effectiveness of the project. See example below.

Website Name Website Address Project Description

Budgeted Cost Types of Metrics Status

Arizona History Traveler

www.azhistorytraveler.org

Creation of site $75,000



3.2.6 Printed Material (brochures, maps, travel guides)

List the type of printed material, the target audience, the quantity required, the area of distribution and the budgeted cost. Remember to include the type of activity measures, performance measures and productivity metrics that will be used to determine the effectiveness of the project. See example below.

Name/type of

printed material

Target Audience Quantity Distribution Budgeted


Glendale Tourism Brochure

Arizona residents 50,000 Statewide rack

displays $5,000 Activity Performance Productivity


3.2.7 Audio-Visual (film, video, and DVD/CD)

List the type of audio-visual material, the target audience for the material, the quantity required, the distribution and the budgeted cost. Remember to include the type of activity measures, performance measures and productivity metrics that will be used to determine the effectiveness of the project. See example below.

Name/type of audiovisual

material



Promotional video tape of destination

Canadian tour operators & travel agents

500 Trade shows $3,500



3.2.8 Travel Show (booth space, registration fees)

List the name of the show, the dates and location of the show, the target audience and the budgeted cost. Remember to include the type of activity measures, performance measures and productivity metrics that will be used to determine the effectiveness of the project. See example below.

Name of Show Date Location Target Audience Budgeted Cost Types of Metrics Status

World Travel Market Nov 5-7 London,

England

European tour operators & media

$3,200 Activity Performance Productivity


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http://www.arizonaguide.com/

http://www.arizonaguide.com/


3.2.9 Media Communications and Public Relations (contracts, familiarization tours) List the name and/or type of project, a brief description of the activities, list of attendees (for familiarization tours) and the budgeted cost. If a PR firm has been selected, list the name of the contractor and include the scope of work/contract with your application. Remember to include the type of activity measures, performance measures and productivity metrics that will be used to determine the effectiveness of the project. See example.

Name/type of

project Brief Description Budgeted Cost Types of Metrics Status

PR Contract Press releases, fam tours, promotions, collateral development



Selected Contractor: Perfect PR Group

3.2.10 Event Sponsorships List the name of the event, the date(s) of the event, a brief description of the event to be sponsored and the budgeted cost. Remember to include the type of activity measures, performance measures and productivity metrics that will be used to determine the effectiveness of the project. See example below.

Name of Event Date(s) Brief Description Budgeted Cost Types of Metrics Status

Fiesta Bowl Jan 1, 2020 College Bowl in Glendale $100,000



3.2.11 Research and Strategic Planning

List the name and type of project, a brief description, the budgeted cost and the selected contractor. Remember to include the scope of work/contract with your application. See example below.

Name/type of project Brief Description Sub contractor Budgeted


Conversion Study

Analysis of effective conversion of target cities campaign

Arizona State University $25,000



3.2.12 Co-operative Programs Submitting DMOs are encouraged to participate in co-op projects using Prop 302 funding in FY2020. Please provide a Name/type of project, dates, description of the project(s) and any supporting documentation pertaining to this project, as well as the budgeted cost and participating DMOs (includes CVBs, chambers of commerce, universities and tribal entities). Remember to include the type of activity measures, performance measures and productivity metrics that will be used to determine the effectiveness of the project. See example below.

Name/type of project

Date(s) Description Budgeted Cost

Participating DMOs Types of Metrics

Status

Globe and Mail

Nov 15, 2019 – Jan 3, 2020

In-store promotion

$30,000 Greater Phoenix CVB Arizona Office of Tourism



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3.2.13 Production and Design List the type of asset, the target audience for the asset, the quantity required, the distribution and the budgeted cost. Remember to include the type of activity measures, performance measures and productivity metrics that will be used to determine the effectiveness of the project. See example below.

Name/type of asset



Print Ad Production

Circulation of magazine 3 Magazines $3,500



3.2.14 Other Marketing Activities and Projects

Provision is made for requests for funding pertaining to marketing activities which are not included in the categories listed above. Please provide a detailed description of the project and any support documentation pertaining to this project, as well as a budgeted cost. Remember to include the type of activity measures, performance measures and productivity metrics that will be used to determine the effectiveness of the project.

Name/type of project

Date(s) Description Budgeted Cost Types of Metrics Status

Experiential Marketing

Nov 15, 2019 – Jan 3, 2020

In-market cut out boards



3.3 SECTION C - Supporting Documentation – the following elements must be included:

• FY2021 Application First time applicants are required to submit a copy of the DMO/community’s FY2020 tourism marketing

budget with the FY2021 Affidavit in Support of Application. • For regional submissions: Proof of all meetings with participating communities by submission of dated agenda

and any other supporting documentation. • Back-Up Documents for Work with Outside Vendors (i.e. media outlets, PR firms, website developers, research

firms, etc.) – Examples of documentation can be scope of work, proposals, insertion orders, media plans, MOU’s, contracts, other official agreements or bids.

3.4 Non-Fundable Expenses

• Employee or third-party contractor salaries • Entertainment and honorariums • Food and beverages • Equipment purchase and rental • Promotional items, including but not limited to: prizes, trophies, plaques, decorations, trinkets, giveaways, hats,

shirts, banners, flags, floats • Items for re-sale • Business directories of any kind (ads, brochures, etc.) • Program booklets, stationery, table tents, membership solicitation literature • Travel expenses (only exception is for travel media and trade FAM tours) • Postage and office supplies • Donations • Construction of permanent structures

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• Building maintenance • Anything contrary to state or federal law

3.5 Delivery Instructions

One (1) typed, signed, digital copy of the Prop 302 application must be received by AOT no later than 4:00 p.m. Friday, May 29, 2020. All submissions are time and date stamped upon arrival. Faxed or handwritten applications will not be considered. Late and/or incomplete applications will not be accepted.

Tim DeClaire

Senior Director of Marketing Email: [email protected]

Arizona Office of Tourism 100 N. 7th Ave., Ste. 400 Phoenix, AZ 85007

4. Approval Process Guidelines

• Applications from eligible DMOs will be reviewed and evaluated by the Prop 302 Maricopa County Marketing Program Committee (Prop 302 Committee) which includes members of the accommodations and rental car industries, members of the Governor’s Tourism Advisory Council and AOT’s Director. AOT staff may provide technical assistance to the committee as needed.

• Upon final Prop 302 Committee decision on the level of funding to be awarded, applicants will be notified in writing. The amount of funds awarded to approved applicants will be determined by the following:

o The assurance of compliance with the intended purpose of the marketing funding, o Arizona Department of Revenue report for Maricopa County total hotel taxable sales, o Quality of each application, o Review and discretion of the Prop 302 Committee.

Marketing Funding Process • Following the official notification of award, based on funding estimates projected by the Arizona Tourism &

Sports Authority (AZSTA), funding will be distributed to eligible Maricopa County recipients on a monthly basis for twelve consecutive months of the annual program from actual dollars transferred to AOT by AZSTA each month. AOT will send written electronic notice regarding any distributions that reflect an increase/decrease from those monthly projected dollars provided at time of award at start of each fiscal year program. Each recipient is responsible to adjust allocations for total funds distributed in their application following Section 6. Project Modification and Withdrawal Guidelines (Page 11) of Fiscal Year 2021 Proposition 302 Maricopa County Marketing GUIDELINES.

Reallocation Procedure • All funding allocated for FY2021 must be spent on approved marketing activities in FY2021. Any change requests

to Marketing Plan must be emailed to Tim DeClaire. Approvals from Prop 302 Committee to be provided in 7-10 business days.

• Each applicant is responsible for submitting an Excel document log of all change requests and additional dollars received must be submitted with the mid-year and year-end digital expense reports.

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5. Project Development Guidelines • Entities that are not able to follow the guidelines listed below for any given project must submit a written

request for a waiver from AOT and the Prop 302 Committee. 5.1 Basic Guideline Requirements

• The primary focus of all Prop 302 Maricopa County Marketing Program projects must be to promote tourism and attract visitors from appropriate markets. It is also imperative to monitor and document its effectiveness.

• Qualifying projects are limited to the creation and implementation or continuation of new or expanded marketing programs over and above programs that existed in FY2001.

• For each marketing program component submitted for funding, it is required to include the activity measures, performance measures and the productivity metrics.

• Program participants cannot transfer funds from one specific project to a different project without prior written approval from AOT.

• When placing paid media (advertising), publications/publishers should be chosen based upon the appropriate target audience.

• AOT’s “Grand Canyon State” logo (below) is encouraged to be featured on all placements. The logo and the words “Grand Canyon State” must be legible. If the project is produced in four colors, AOT’s logo should also be in four-color. Logos are available from AOT via e-mail or by download.

• Use of AOT call to action (below) is not required but is encouraged to be featured on all advertising wherever practical. The VisitArizona.com URL must be legible.

“For statewide travel information, go to VisitArizona.com”

• The purpose of providing funding to Maricopa County DMOs/communities is to promote the individual city or

town as a destination with a variety of tourism-related products and activities. Funding, therefore, should not be used to promote a single for-profit business.

5.2 Specific Guideline Requirements 5.2.1 Print Placement: Newspaper, Magazine

• "Arizona" must be spelled out in its entirety and prominently featured on all print media. • The AOT “Grand Canyon State” logo and the VisitArizona.com URL are not required but encouraged to appear

on all print ads. • Production costs may be included as part of the budgeted cost of the placement, but should be listed under the

‘production and design’ section. 5.2.2 Outdoor Placement: billboards, busboards, etc.

• Billboard placements are allowed on interstates or major highways outside of Maricopa County. • The AOT “Grand Canyon State” logo and the VisitArizona.com URL are not required but encouraged to appear

on all outdoor placements and the logo should be legible from the adjacent roadway. • Production costs may be included as part of the budgeted cost of the placement, but should be listed under the

‘production and design’ section.

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5.2.3 Broadcast Placement: Radio, Television

• Radio and TV ads are required to include the word "Arizona" (for TV ads: written as well as spoken) and must reach outside of Maricopa County, preferably out-of-state.

• The AOT “Grand Canyon State“ logo and the VisitArizona.com URL are not required but encouraged to appear on all television ads.

• Production costs may be included as part of the budgeted cost of the placement, but should be listed under the ‘production and design’ section.

5.2.4 Digital Media: Banner Ads, Mobile Applications, Web Sponsorships, Paid Social Media

• Digital advertising is not required but is encouraged to promote a website that features the AOT call to action on the home page of the site.

• The home page of the website being promoted is not required but is encouraged to link to AOT’s website: http://www.visitarizona.com

5.2.5 Website Development/Enhancement

• Funding is available for the development of a new tourism site or the enhancement of a current site. All sites are not required but are encouraged to have the AOT call to action on the home page and should provide a link on the home page to AOT's website: http://www.visitarizona.com

• Information on these sites is restricted to tourism promotion. A chamber of commerce’s website shall not include information on chamber meetings, membership benefits and other non-tourism related information.

5.2.6 Printed Material: Brochures, Maps, Travel Trade Guides, etc.

• The word "Arizona" must be prominently featured on the front and the AOT “Grand Canyon State” logo and the visitarizona.com URL are not required but encouraged to be prominently featured on the front or back page.

• Printed literature must include the DMO’s complete address, phone number with area code. It is also a requirement to include the quantity and date printed. For example: (10,000-09/08).

• A majority of the distribution must be outside of the applicant’s geographical area. An explanation detailing where, through what channels and in what quantity the brochures will be distributed must be included in the application.

• Highway maps should reflect a geographical outline and provide direction and distances to the traveler. • If a contract distribution service is requested, also include terms and extent of contract. • All publications distributed in foreign countries should also include the words "Printed in USA,” a West coast

map of the United States highlighting Arizona, a temperature chart (if included) in Celsius degrees, mileage converted to kilometers and address listing with city, state, zip code and "USA." (Do not use toll-free numbers, such as 800, 888, etc. that are not accessible in international markets)

5.2.7 Audio-Visual: Film, Video, DVD/CD etc.

• These must be intended as promotional pieces designed primarily to attract non-resident visitors and appeal to more than just local residents.

• Film and video productions are not required but are encouraged to include the AOT “Grand Canyon State” logo and the visitarizona.com URL.

5.2.8 Travel Shows: Booth Space, Registration Fees, and Literature Shipping

• Booth space includes the cost of allotted space as outlined by the travel show contract, as well as rental or construction costs of the booth itself.

• Literature shipping cost is restricted to the commercial freight expense incurred to transport printed materials to designated travel shows.

• Funding is not available for accommodations, entertainment, food and beverages, rental car expenses or any other travel costs.

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http://www.visitarizona.com/





5.2.9 Media Communications and Public Relations • Funding is available for contracted PR services/project. Funding may not be used towards administration of

agency. A detailed explanation of the planned activities must be provided with the application. Once a contractor has been selected, a copy of the contract must be sent to AOT.

5.2.10 Event Sponsorships

• Funding is available for event sponsorships which promote travel to Maricopa County. Entities applying for funding for event sponsorships should provide a brief description of the event to be sponsored and the media coverage and value to accompany the sponsorship.

5.2.11 Research and Strategic Planning • Applicants may use up to 10 percent of their Prop 302 fiscal year allocation for approved and contracted

research and strategic planning. Applicable projects may include visitor profile research, SWOT analyses, feasibility studies, conversion studies, etc. A detailed description of the project, proposed methodology and scope of work must be included in the application.

5.2.12 Co-operative Programs

• Submitting DMOs are encouraged to participate in co-op projects using Prop 302 funding in FY2021. A detailed description of the project and a list of participating DMOs/communities must be included in the application.

5.2.13 Production and Design

• These must be intended as promotional pieces designed primarily to attract non-resident visitors and appeal to more than just local residents.

• Production assets are not required but are encouraged to include the AOT “Grand Canyon State” logo and the visitarizona.com URL.

6. Project Modification and Withdrawal Guidelines

• Any changes to the categories of projects detailed on the application will not be considered as eligible expenses unless prior approval is requested in writing via email and granted by the Prop 302 Committee. It is your responsibility to keep an Excel document change log of all requested changes throughout the year to be submitted with your final report.

• AOT must be notified in writing immediately, but no later than April 30, 2021 if the applicant does not plan to spend any portion of the FY2021 Prop 302 Maricopa County Marketing Program funding on its approved project(s) within FY2021. Any unused funds must be returned to AOT no later than June 7, 2021 to meet the fiscal year deadline for deposits to the state. Once received, the funds will be reallocated to the marketing program for the next fiscal year and included in each participant’s award projection. Failure to do so will strongly impact future funding.

7. Expense Reporting Guidelines To facilitate the continuation of Prop 302 Maricopa County Marketing Program funding for subsequent fiscal years, AOT requires all marketing participants to submit a mid-year and year-end expense reports. The mid-year expense report shall include a record log of changes and additional dollars used throughout the first half of the year. The year-end expense report shall include a record log of changes and additional dollars used throughout the fiscal year. Mid-year and year-end expense reports in electronic excel compatible form should be submitted in the format provided below:

7.1 Section A - Applicant Information

• Complete the information from the original application, noting any change.

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7.2 Section B - Projects Funded • Identify each activity under the appropriate project heading (see pages 3-6). A fundable item is one that has

been pre-approved by AOT from the original application or has received approval for change, and that was performed according to Prop 302 Maricopa County Marketing Program Guidelines.

• Indicate dollars spent - i.e. the amount DMO/community paid to accomplish this item. Please use the same terminology as was used in the original application to describe the items.

For each item listed in Section B, the following documentation must be included with your expense report:

1. Proof of Charge from Vendor: Submit legible invoice copies reflecting date, description and dollar amount. 2. Proof of Payment: Include a copy of cancelled check and payment receipt from the vendor.

7.2.1 Important: As mandated in FY2020, proof of Implementation is NOT required for the end of year report, but

may be requested by the Prop 302 Committee and must be provided within five (5) business days of request. These items include:

• Ad placement tear sheets (verifying date and name of publication) • Insertion orders • Contract or comparable document from the third-party vendor • Copies of audio or video created • Invoice indicating actual broadcast times and dates • Actual printed materials • Trip reports from trade shows • Billboard photographs showing content • Copies of press releases • Research reports

7.3 Section C - Total Spent

• Indicate the total dollar amount of all fundable expenses. 7.4 Section D - Signatures

• Expense reports must be signed by both the Project Coordinator and the Administrative Official as submitted in the original application.

7.5 Deadlines for Expense Reports

• Mid-year expense reports for FY2021 must be received by AOT no later than January 29, 2021 and shall cover activities performed during the months of July 2020 through December 2020. Year-end expense reports for FY2021 must be received by AOT no later than July 24, 2021 and shall cover activities performed during the months of July 2020 through June 2021. Note: Due to the complex nature of these expense reports, AOT requests that each applicant submit a well-organized expense report following the order of Sections A-D as noted above. In Section B, each applicant should include an invoice, copy of the corresponding check, and cancelled check in chronological order matching each item listed on the expense report. Additionally, if media charges exceed Prop 302 allocated funds, please note the difference within each expense submission. Example: total media charge = $125,000, invoice charges total $130,000. Applicant shall note amount allocated to Prop 302 funding and amount paid for by other funding on their itemized spreadsheet.

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8. Failure to Comply Failure to comply with any of the above guidelines may impact the amount of Prop 302 Maricopa County Marketing Program funding for the current year and/or future years for the participant found in non-compliance. The penalties imposed are at the determination of the Prop 302 Maricopa County Marketing Program Committee.

No extensions will be granted. Failure to provide application, reports or any requested backup materials by a given deadline will jeopardize your community’s future funding. If a deadline is missed and your community is part of a co-op, all members of the co-op will be notified. 9. Further Assistance

If further information or assistance is needed, please contact the Prop 302 Maricopa County Marketing Program Administrator:

Tim DeClaire Senior Director of Marketing Arizona Office of Tourism 100 N. 7th Ave., Ste. 400 Phoenix, AZ 85007 Telephone Number: 602.364.3704 Fax Number: 602.364.3704 E-mail: [email protected]

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Appendix A

Prop 302 Maricopa County Marketing Program

FY2021 Application Due to AOT no later than 4pm on Friday, May 29, 2020 I, _____________________________, confirm that I have prepared this application for the Maricopa County Prop 302 marketing program. I certify that I am a duly authorized representative of the DMO/community identified below with the principal administrative information as follows: Name of Applicant Organization: __________________________________________________________________________ Address (including city/zip): ______________________________________________________________________________ Project Coordinator’s Name, Title,: ________________________________________________________________________ Project Coordinator’s Telephone, Fax and Email:______________________________________________________________ _____________________________________________________________________________________________________ Funding Amount Requested: _____________________________________________________________________________ Regional co-op partner(s) (if applicable). _____________________________________________________________________________________________________ Important Note: Each co-op partner must provide (and attach) a letter of support on official letterhead from the Mayor or City Manager of the co-op city supporting their partnership with the applicant. The amount of applicant DMO/community’s annual FY2021 tourism marketing budget is: $_________________ * By signature below, applicants verify that organization has met all the eligibility requirements required by the Arizona Office of Tourism and that its statements and representations in its Application and in the documentation submitted in support thereof, are true and correct as of the date hereof, and are and were true and correct at the time the Application was submitted. ____________________________________ _______________________________________ ___________________ Signature of Project Coordinator Title Date ____________________________________ _______________________________________ ___________________ Signature of Organization Head Title Date (If different than Project Coordinator) First time applicants are required to submit a copy of the organization’s FY21 marketing budget with the FY21 application.

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AMENDMENT TO GUIDELINES

FY21 Amendment to Prop 302 Maricopa County Marketing Program Carryover Allowance

Given the challenges caused by COVID-19, the Prop 302 Committee will allow DMO’s a one-time opportunity to carry over unused funds from FY2020 to FY2021. DMO's will provide the amount of FY2020 funds they intend to carry over to FY2021 by May 13, 2020 by submitting the official carryover document provided. Those funds will then be part of their Prop 302 FY2021 application, due on May 29, 2020. Total submitted amounts (FY2020 carryover and FY2021 projected amount) will be considered for approval by the Prop 302 Committee.

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RURAL & TRIBAL MARKETING COOPERATIVE

FISCAL YEAR 2021

• CONTRIBUTION ALLOCATIONS • PROGRAM GUIDELINES

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Co‐op Partners Total Contributed

City of Apache Junction $8,850.00

City of Benson Visitor Center $5,575.00

City of Bisbee $9,250.00

City of Cottonwood $49,714.50

City of Eloy $7,925.00

City of Kingman $49,835.50

City of Page $49,568.00

City of Prescott $49,905.00

City of Sierra Vista $24,480.00

City of Willcox $17,975.00

City of Williams $49,880.00

Cochise County Tourism Council $43,035.00

Copper Corridor Economic Development Coalition $6,875.00

Discover Salt River $34,748.00

Flagstaff Convention & Visitor's Bureau $49,947.50

Experience Hopi $4,087.50

Grand Canyon Resort Corporation ‐ Hualapai $49,079.00

Greater Casa Grande Chamber $5,000.00

Greater Florence Chamber of Commerce $22,504.00

Lake Havasu City Convention & Visitors Bureau $49,450.00

Navajo Tourism Department $49,320.50

Pinal County $27,968.00

Sedona Chamber of Commerce $46,212.50

Town of Chino Valley $9,200.00

Town of Superior $13,875.00

Tubac Chamber of Commerce $5,000.00

Wild Horse Pass Development Authority $36,935.00

Yuma Visitors Bureau $10,800.00

Total Partner Contributions $786,995.00

AOT Partner Match $786,995.00

Tax $705.00

Aot Digital Anchor Ads $105,000.00

Aot Digital Anchor Ad Serving Fees $10,000.00

Aot Print Anchor Ads $97,300.00

Retainer $34,500.00

Commission $111,110.00

Total AOT Budget $1,000,000.00

Total Co‐op Spend $1,000,000.00

Total Remaining Budget $0.00

The Rural & Tribal Marketing Cooperative

Fiscal Year 2021

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The Rural Cooperative Marketing Program Fiscal

Year 2021

Guidelines and Instructions

Due Date: Applications must be received no later than 5:00 p.m. on August 24, 2020.*

OFFICE LOCATION: Arizona Office of Tourism 100 N. 7th Ave., Suite 400 Phoenix, AZ 85007 AOT CONTACTS: Jamie Daer – Director of Advertising E – [email protected] AGENCY CONTACTS: Keri Bieber, Director, Media Services E – [email protected] *Please Note: If you are not able to commit at this time to the program due to budget constraints, but you anticipate that marketing funds will be available later in the year, please submit just an application only by 8/24 so that we know you’re interested in participating. If and when your marketing funds become available, you may contact us at that time and choose from remaining marketing opportunities at a 50% match.

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mailto:[email protected]

TABLE OF CONTENTS

Program Purpose 3

Program Description 3

Subsidized Rates 4

Program Eligibility 4

Media Plan 6

Application Instructions 6

Selection Sheet 7

Ad Placement Requirements 8

Project Effectiveness 8

Attachments 9 A – The Rural Marketing Cooperative FY 2021 Application

Section A - Applicant Administrative Information Section B - FY 2021 Affidavit in Support of Application

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ARIZONA OFFICE OF TOURISM The Rural Cooperative Marketing

Program FY 2021

1. Program Purpose The Rural Cooperative Marketing Program is administered by the Arizona Office of Tourism (AOT) for the purpose of expanding travel and tourism related activities in communities throughout Arizona. It provides a means for eligible participants, (rural destination marketing organizations (DMOs), tribal entities, statewide tourism associations and regional tourism partnerships), to participate in marketing opportunities. AOT works with media and partnership representatives to negotiate a variety of marketing opportunities at reduced rates that may require minimum participation for the program to move forward. Eligible participant buys are subsidized at fifty (50) percent of the negotiated rate.

2. Program Description The Rural Cooperative Marketing Program offers a variety of strategic media and AOT partnership opportunities, and participants can participate at different levels. The media plan combines print, outdoor and digital placements, along with packaged co-op media placements and additional non-media opportunities. Below is a brief description of each of the offerings included in the Rural Cooperative Marketing Program for FY21:

Packaged Digital Media - Participants can select from geo and behavioral targeted online media packages, using a variety of sites and networks to maximize effectiveness. Options include digital display (behavioral and contextual), search marketing, retargeting and more. Shared Opportunities – Participants can buy into domestic and international publisher inserts and selections along with the Arizona Office of Tourism. Integrated Media Co-op Advertising Program – Participants can buy into a cooperative marketing integrated program that features digital (display, search, retargeting) tactics as well as traditional media tactics to create an overarching Arizona campaign. Individual Ad Buys - Participants can choose to place ads in pre-selected print and out-of-home media. Most of these placements will be standalone placements; however, a few print publications may group the ads into a publisher-designed Arizona section. Total Individual Ad Buys shall not exceed $15,000 half-net rate/$30,000 total-net rate. Content Creation and Distribution – Participants can choose from several publishers who will create online written/video content and who will provide channels to distribute the content. Mobile Location Data – Participants can purchase reports detailing the travel patterns and origin markets of mobile devices detected in their destination.

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Arizona Visitor Information Center Program (AVIC) – Through this program, participants have the opportunity to receive Official Arizona Visitor Information accreditation, in addition to support from AOT in the form of guidelines, listings in the Official State Travel Guide, map and on VisitArziona.com .

Local First Development Packages – Participants have the opportunity to buy into education and tiered brand-development packages.

Corragio Group Consulting – Complimentary Recovery Planning Cohort Sessions

Trade & Media Mission – Participants have the opportunity to join AOT in Trade & Media mission.

Crowdriff UGC (User Generated Content) – Participants have the opportunity to buy into a Tiered services that will help integrate user-generated images on their websites.

Translation Services – Participants can buy translations services for German, Chinese, French, Spanish and Japanese. Translated materials can include brochures, website content, ads, restaurant menus and visitor signage. Custom quotes will be provided to fit your needs.

3. Subsidized Rates

AOT will subsidize rates at fifty (50) percent of the negotiated rate for qualified co-op participants.

3.1 Individual Ad Buys shall not exceed $15,000 half net rate.

3.1.1 Total buy amount cannot exceed $50,000.

3.1.2 Opportunities may have minimum or maximum participation requirements.

Subsidized rates for the Rural Cooperative Marketing Program are contingent upon AOT’s FY 2021 budget.

4. Program Eligibility

Rural Destination Marketing Organizations (DMOs), tribal entities, statewide tourism associations (e.g.,the Arizona Dude Ranch Association) and regional tourism partnerships meeting the criteria in thissection are eligible. Please read the eligibility criteria thoroughly.

4.1 Applicants must meet the criteria of at least one of the following four categories in order to beeligible for subsidized rates:

4.1.1 An Arizona-based Rural Destination Marketing Organization (DMO). A DMO is defined as an incorporated not-for-profit organization or governmental unit that is responsible for the tourism promotion and marketing of a destination on a year-round basis. Only one DMO can participate per city, town or region. Rural DMOs are defined as any DMO

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located outside Pima and Maricopa Counties or a DMO located in Ajo, Gila Bend or Why. An entity cannot participate in both Prop 302 and Rural Co-op.

4.1.2 A tribal entity that wishes to market existing tourism attractions and tourism facilities.

4.1.3 An Arizona-based statewide tourism association that represents entities that rely on tourism-related business for a majority of their income.

4.1.4 An Arizona-based regional partnership which consists of a minimum of three (3) DMOs that promote a minimum of three (3) communities as a single regional tourist destination; the number of rural or tribal DMO participants must be equal to or greater than the number of urban DMOs. For example, if a regional partnership consists of three (3) DMOs, two (2) must be rural or tribal. Only one regional partnership can participateper region. Regions are not limited to those marketing regions previously identified byAOT for promotional purposes. Each regional participant must be the designated DMOfor its respective community. Regional partnerships must have a tourism website ormicrosite that promotes each regional participant in an equitable manner.

And

4.1.5 Applicants must be exempt from federal income tax under section 501(c)3 or 501(c)6 of the Internal Revenue Code. Applicants shall not use the 501(c)3 or 501(c)6 status of another organization. Tribes and municipalities are exempt from the 501(c)3 or 501(c)6 status requirement as they are government.

And

4.1.6 Applicants must have a tourism website or microsite (See Section 8.6) to use as the call to action and a fulfillment piece (see Section 8.7).

DMOs that do not qualify for this program are still eligible to participate with AOT on co-op marketing opportunities at the negotiated rate but will not receive the 50% subsidy.

5. Strategic Goals of the Program

● Increase Visitation● Increase Return Visitation● Increase Visitor Spending

6. Objectives of the Program

● Deliver overnight visitation to the rural communities and regions of Arizona.

● Deliver a cohesive message with reach and frequency to visitors in target markets to have a larger

impact.

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● Secure partnerships and opportunities at varying levels that allow for co-branded and stand-alone

programs for the participants.

7. Media Plan

The Rural Marketing Cooperative is a rural Arizona-focused cooperative marketing program that utilizesa media plan designed to attract visitors from major metropolitan areas in Arizona, drive markets,short-haul domestic and targeted international markets. The fiscal year 2021 program will run fromSeptember 15, 2020 – August 31, 2021.

AOT has developed a comprehensive media plan backed by AOT research and participant insight. Themedia placements are geo-targeted to your identified target markets and audiences:

Target MarketsArizona • Phoenix, Tucson, all of AZDomestic • Drive/short fly Markets: Colorado, Texas, California, New Mexico, Utah, NevadaInternational • Mexico, Canada (possibly but last priority)

Target AudiencesBaby Boomers • Adults 45-64 | HHI of $50,000+ with emphasis on $75,000+GenX • Adults 35-44 | HHI of $50,000+ with emphasis on $75,000+

8. Application Instructions

Each entity may submit a maximum of two applications. If an entity submits two applications, one mustbe a regional partnership.

The application must include all information outlined in Attachment A, Section A - ApplicantAdministrative Information and Attachment A, Section B - Affidavit in Support of Application.

8.1 Entity Name: The name of the applicant must be the same as it appears on the incorporation, federal tax exemption or the state charter.

8.2 Physical Address: Provide a street address (no P.O. Boxes) for deliveries.

8.3 Mailing Address: Provide a mailing address that can be used by AOT for routine correspondence.

8.4 County: Identify the county in which the applying organization is located. In the case of regional applications, list all counties included under the application.

8.5 Project Coordinator’s Name and Title: The person responsible for administering the project and the day-to-day contact for AOT. This individual is also responsible for submitting all necessary documentation throughout the year-long effort of this project and must be familiar with the specifics of the Rural Marketing Cooperative, as well as the application submitted. Provide the Project Coordinator’s telephone number and e-mail address.

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8.6 Provide the tourism website that will be promoted in advertisements. Regional partnerships must have a website that promotes the region and each participant in an equitable manner.

8.7 The fulfillment piece is the tourism brochure or visitor guide that will be sent to people who

inquire about the destination. Regional partnerships must have a fulfillment piece that promotes the region and each participant in an equitable manner. The fulfillment piece must be presented on request.

8.8 Refer to Section 4.1.4 for information on Regional Partnerships. List all regional participants in

the designated box. 8.9 Signatures: The signatures on the application certify that the information on the form is correct

to the best of the signatories’ knowledge, and authorizes the participation in the Rural Marketing Cooperative for FY 2021. Applications must bear the signatures of the Project Coordinator and the Administrative Official (the person authorized to commit the applicant to funding requested co-op opportunities). Both signatures are required to process the application. In some cases the Project Coordinator and the Administrative Official will be the same person.

8.10 Signed FY 2021 Affidavit in Support of Application must be included (Attachment A Section B). Applications submitted as a regional partnership must include a separate signed affidavit from each regional participant.

The Application and Affidavit forms are available online at https://tourism.az.gov/rural-marketing-co-op-program/ All forms must be completed and signed, and received by AOT via email at [email protected], no later than August 24, 2020 by 5:00 p.m. Please contact Jamie Daer, at the aforementioned email address, if you have any questions or concerns about the application process.

Late applications will not be accepted. Incomplete applications will be ineligible.

9. The Rural Marketing Cooperative Opportunity Selection Sheet

The Rural Cooperative Marketing Program allows participants to leverage their resources in partnership with AOT; and for eligible participants to receive subsidized rates of fifty (50) percent for all pre-selected marketing opportunities listed on the Rural Cooperative Marketing Opportunity Selection Sheet. A link to the selection form will be provided to partners.

9.1 Be aware that all applicants may not receive every marketing opportunity requested.

9.11 Select opportunities are limited due to space. If space limitations are exceeded, participants will be selected by lottery.

9.12 Costs for Mobile Data reports will be customized based on destination location and needs.

9.13 Trade and media missions - in progress

9.14 Crowdriff UGC Platform – must have at least 6 DMO partners in order for the program to be offered.

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https://tourism.az.gov/rural-marketing-co-op-program/

Note: Publication costs identified on the Rural Cooperative Marketing Program Opportunity Selection Sheet are listed as net rates for all placements. Participants will be billed directly by the publisher at half the net insertion cost.

10. Ad Placement Requirements 10.1 All ads must be received by AOT for review prior to the material deadline identified in the Rural

Marketing Cooperative Opportunity Profiles. Please e-mail the ad to Jamie Daer, at [email protected]. AOT approval for all ad creative is mandatory and may take up to five (5) business days from the date of receipt.

10.2 Participant ads must include their logo and AOT brand mark/website (see above) on all print and digital placements unless the size of the digital placement (small banners/mobile banners) will not support two logos. In that case, the AOT brand mark is not required.

10.3 If an ad is placed without prior AOT review/written approval, AOT will not be responsible to pay

any portion of the ad cost. The full advertisement cost will be the responsibility of the Rural Marketing Cooperative participant.

10.4 Inclusion of the AOT brand mark is required on all participant websites. Please see 10.2 for AOT

brand mark information.

11. Project Effectiveness AOT shall require each digital placement to have an Arrivalist tracking pixel in order to track conversion. AOT will work with each publisher to place the tracking pixel, and AOT’s Research department will provide digital performance reports to each participant.

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ATTACHMENT

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Attachment A, Section A

The FY 2021 Rural Cooperative Marketing Program Application

● A complete and signed application must be emailed to, and received by, AOT no later than August 24, 2020 by 5:00 p.m

● Incomplete and/or faxed applications will not be accepted.

Section A: Applicant Administrative Information

1. Entity Name: ___________________________________________________________________________________

Doing Business As (if different from above) ___________________________________________________________

2. Physical Address: Street: ____________________________City: ____________ State: AZ Zip Code: _____________

3. Mailing Address (if different): PO Box: ____ City: ___ State: AZ Zip Code: ____________

4. County (list all represented if regional applicant): ______________________________________________________

5. Project Coordinator’s Name and Title: ______________________________________________________________

Telephone Number: __________________ E-mail:_______________________________________________

6. Destination Website: __________________________________________

7. The applicant has a current fulfillment piece for the destination. ⬜Yes

8. Is this application being submitted for a regional partnership? ⬜Yes ⬜ No

If Yes, list all participants contributing to the regional Rural Marketing Cooperative effort starting with the lead applying entity. Note: A regional partnership must consist of at least three (3) DMOs and each entity must sign and attach an affidavit in support of application, (Attachment B).

Please list regional partners:

9. Two signatures are required in order to process this application.

Signature: (Project Coordinator)______ Date:_______________________

Printed Name: ____________________ Title: __________________ Organization: ________________

Signature: (Administrative Official________ _______________Date: ______________________

Printed Name: ________________________________________ Title: __________________ Organization: ________________

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Attachment A, Section B

The FY2021 Rural Cooperative Marketing Program

Affidavit in Support of Application

I am submitting this completed affidavit at the request of The Arizona Office of Tourism for the purpose of making an application for a public benefit or privilege. I hereby certify that I am a duly authorized representative of the organization identified below with the principal address as follows:

Organization: ________________________________________________________________________________________

Physical Address: _____________________________________________________________________________________

Amount contributing to the Rural Cooperative Marketing Program $ ___________________________________________

Source of funding: _____________________________________________________________________________________

REGIONAL PARTNERSHIPS MUST SUBMIT A SEPARATE, SIGNED AFFIDAVIT FOR EACH REGIONAL PARTICIPANT

I further certify that the above referenced organization is one of the types of organizations listed below: (Please check the

appropriate box)

⬜ An organization recognized as the official destination marketing organization by a city or town.

⬜ A Tribal entity promoting tourism.

⬜ An Arizona-based statewide tourism association.

I recognize that pursuant to Arizona Law, perjury constitutes a class 4 felony under A.R.S. Sec 13-2702 and a false swearing constitutes a class 6 felony pursuant to A.R.S. Sec 13-2703.

_________________________________________________ ______________________________________________

(Signature of Administrative Official) (Printed Name)

Title: ______________________________

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AGENCY & INDUSTRY REPORTS

A. Arizona Office of Tourism’s FY20 Annual Report B. Tourism and the Road to Recovery in Arizona Post COVID-19, Jim Rounds Study C. Arizona Monthly Impact Tracker – July 2020 D. USTA_Coronavirus_WeeklyImpacts_08.20.20

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FY20 ANNUAL ECONOMIC IMPACT REPORT

Moving forward

together.

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Letter from the Director Dear Industry Partner,

Thank you for another year of collaboration, support and camaraderie. While I pen this year’s letter – Arizona’s tourism industry outlook has drastically shifted since last summer and the work to overcome the impacts of a global pandemic lie ahead. But, as a true reflection of our industry, we are all working together with common goals and shared solutions to ensure that the Arizona tourism industry gets back on track.

Our FY20 Annual Report highlights some of our successes achieved on behalf of the Arizona tourism industry, including our partnership with the Arizona Department of Transportation to refresh our “Welcome to Arizona” signs and our collaboration with the Arizona wine industry to produce the first-ever Arizona Wine brochure. Additionally, the Arizona Office of Tourism (AOT) has been actively involved in the state’s efforts to stop the spread of COVID-19 with active engagement in the creation of state-wide tourism industry guidance, education campaigns, and more. Governor Ducey directed AOT to take a leadership role in the recovery of the tourism industry and we have been involved in multiple recovery efforts, including the recent launch of the “Rediscover Arizona” marketing campaign encouraging visitation back to the Grand Canyon State and creation of the Arizona Hospitality Workforce Connection project.

Within this report you’ll also find 2019 Economic Impact data – a record breaking year for Arizona’s tourism industry. Together, we generated $25.6 billion in direct travel spending, an incredible milestone for the industry. But, we know that this newly released data reflects a different time, when traveling to Arizona was unchallenged. The substantial economic impact of 2019 should not be understated, but in fact, it should serve as a reminder of what this industry can, and will once again, achieve.

Moving forward AOT is continuing work on state-wide industry recovery plans and we thank those who participated in our planning sessions. We listened to the many great suggestions and are now using the findings as a guide for our industry to ensure these efforts are as impactful as possible.

We are proud of all that we have accomplished together this past year – again, thank you for your partnership. We look forward to working with you next fiscal year to promote travel and recovery for our great state

Debbie Johnson, Director Arizona Office of Tourism

The Arizona Office of Tourism (AOT) strives to enhance the state’s economy and the quality of life for all Arizonans by expanding travel activity and

increasing related revenues through tourism promotion and development.

AOT’s goal is to provide effective, research-driven strategies to achieve this mission while serving as the comprehensive leader for Arizona’s tourism industry.

Vision To make Arizona the leading travel destination for visitors.

Mission To stabilize and strengthen Arizona’s economy through travel and tourism promotion.

Values Our values are based on leadership, innovation, results and accountability.

Leadership – We provide leadership and unify the industry in marketing and tourism initiatives on behalf of the state of Arizona.

Innovation – We use the latest research, marketing techniques and technology to enable creativity, ingenuity and responsible risk-taking.

Results – Our results-oriented marketing strategy is focused on increased visitor spending and positive economic development.

Accountability – We are responsible stewards of our tourism resources for the people of Arizona.

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AdvertisingIn FY20, AOT implemented its multi-channel advertising campaign “[Un]Real” across national markets, and in the targeted cities of Chicago, Dallas, Denver, New York and San Francisco. The campaign reach was expanded by AOT’s integrated content marketing partnership with Outside Magazine, which featured Arizona resident influencers Nikki Cooley and Chip Thomas. Meredith Corporation, and specifically Travel + Leisure, was another valuable partnership for the agency that generated authentic stories and travel content featuring various Arizona locations.

Additionally, AOT implemented several smaller and more niche marketing campaigns to further inspire domestic visitation, continued with its Rural Marketing Cooperative program and expanded its promotion of the Arizona wine regions.

The FY20 domestic advertising program ran from October 2019 through March 2020. AOT was only three weeks away from the completion of its campaigns when the global pandemic hit. Yet, the agency’s marketing programs still achieved great results even with the shorter campaign timeframe.

Plan your getaway at UnRealAZ.com, and download the Visit Arizona app to customize your trip.

This unreal moment brought to you by White Mesa Arch, Arizona.

AOT_UnReal_Outside Magazine_Final.indd 1 10/11/19 1:34 PM

FY20 advertising garnered high returns - for each $1 invested AOT saw a return of $381 in visitor spending. In terms of state tax revenue, for each taxpayer $1 invested, the state saw an ROI of $30.

The Rural Street ArtistIn 1987, fresh out of medical school, photographer, artist, and physician CHIP THOMAS, who also goes by his artist name Jetsonorama, moved to the Navajo reservation in northern Arizona. He quickly fell in love with both the people and the beautiful canyon country, and has been practicing medicine and making art there ever since.

To learn more about the striking roadside art installations he creates, and the Painted Desert Project he founded, check out outsideonline.com/unrealarizona.

BR ANDED CONTENT

FY20’s enhanced Rural Marketing Cooperative program increased arrival lift by 45% and length of stay by 21%.

WESTWAYS ADVERTISING SECTION 11

In person, the word “grand” seems much too small. As you stare, wide-eyed, trying to take it all in, you realize that maybe no word is truly big enough. And really, there’s something wonderful about that.

Make the [un]real a reality.

Plan your getaway at ExploreMoreAZ.com.

Real.

Grand Canyon National Park

Social media platforms saw year-over-year growth of 32%. Facebook: 446,803. Twitter: 51,700. Instagram: 177,000.

FY20 advertising influenced 683,000 Arizona trips, generating $1.2 billion in leisure travel revenue.

AOT’s new wine region brochure “Savoring Arizona,” focused on the wine trails and tasting rooms in Arizona’s three major grape-growing regions to build awareness and drive visitation to those rural communities.

AOT launched niche marketing programs with Passport Magazine, Ingressus Magazine and subscription box FitFabFun.

The Sunshine to Share campaign ran for a second year in cold-weather domestic cities.

The Saks Fifth Ave. partnership provided more than 40.5 million impressions.

S A V O R I N G ARIZONA

Explore the wine regions taking root in the state.

Alcantara Vineyards

Photo by Jenelle Bonifield

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AOT supported communities across the state with presentations promoting the value of tourism to local economies. In FY20, we presented to 66 statewide groups, associations and local governments.

Trade RelationsAOT works with the travel trade industry (tour operators, receptive tour operators, travel agents) in domestic and international markets to build a global network of Arizona product experts.

In FY20, AOT held a record-breaking number of international destination trainings to keep travel-trade representatives up-to-date and educated on the Arizona product.

• FAM Tours: 6 total groups

• Participants: 43

• Brand USA MegaFams: 2 (Australia, China)

• Communities Visited (Trade & Media): 38

• Trade Sales Appointments and Destination Trainings: 9,054

• Cancellations/Postponements due to pandemic: 4 group tours

Statewide Media CoverageAOT increased local media coverage to tout the importance of tourism to local and state economies.

• Articles/Broadcasts: 800

• Circulation: 337,318,343

• Value: $1,821,929

Media RelationsAOT works with travel media (editors, journalists, photojournalists) in domestic and international markets (primarily Australia, Canada, China, Mexico, Germany, France and the UK) pitching unique story ideas regarding Arizona’s travel offerings.

This program enables the agency to reach further into domestic and international markets to support the promotion of Arizona as a top travel destination.

• Journalists Hosted: 44

• Articles Generated: 1,201

• Article Impressions: 1,907,070,177

• Cancellations/Postponements due to pandemic: 14 trips

Community EngagementAOT continued with its effort to build a network of Arizona Visitor Information Centers (AVIC). In FY20, 15 visitor centers were added to the AOT program. Additionally, through a partnership with Arizona State Parks & Trails, state park visitor centers were included in the AVIC program increasing the state’s available AVIC total to 49 centers.

Pinetop-Lakeside Arizona Visitor Information Center

Director Debbie Johnson presenting to the City of Prescott

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AOT, in partnership with the Arizona Commerce Authority Office of Economic Opportunity, launched the Arizona Hospitality Workforce Connection to help combat unemployment due to the COVID-19 crisis. The website resource connects Arizona’s displaced hospitality workforce with industries that are urgently hiring. Employers can post job opportunities at no charge. The website was designed with ease-of-use in mind, allowing job seekers to locate their hospitality job titles and be matched with similar opportunities. The website has received more than 32,000 unique page visits and several hundred jobs have been filled.

AOT launched its recovery campaign, Rediscover Arizona, in May 2020. The campaign showcases Arizona’s amazing imagery and uses headlines such as “Rediscover Stargazing,” “Rediscover Wide-Open Spaces” and “Rediscover Staycations.” The campaign reaches consumers through several owned and earned media channels, including social, digital advertising, radio and billboards. Phase 1 of the campaign is geo-fenced to reach Arizonans only. As data shows consumers are comfortable traveling further, Rediscover Arizona will expand to reach potential visitors in drive markets.

In response to the global pandemic, AOT developed a 12- to 18-month Arizona Tourism Industry Recovery Plan to stabilize and aid in the recovery of the Arizona tourism industry. AOT worked with an outside consultant to establish a 25-member task force representing the agency and statewide industry partners to determine and set priorities for leading the way to restoring Arizona as one of the country’s most traveled destinations.

The plan has three areas of focus. Each area of focus has various action plans to spur recovery. Below is a synopsis of the plan. The full report is available at tourism.az.gov.

Arizona Tourism Recovery PlanAOT’s Coronavirus Crisis Response

The plan includes:

• Methodology for Recovery Plan creation

• Vision statement for recovery

• Descriptions of three likely pandemic/recession recovery scenarios

– V (Rapid)

– U (Steady and Incremental)

– L (Long Haul)

• Decision criteria which serve as the basis for choosing certain actions to achieve recovery

• Recovery elements:

– Key priorities highlighting the most important things to accomplish

– Strategic areas of focus within each key priority

– Actions to take to accelerate the recovery

• Windsocks (measures) that will provide information whether to stay the course, or pivot to a different recovery strategy

Area of Focus #1:

Accelerate Leisure Travel Activity

a. Food & Beverage

b. Outdoor Recreation

c. Accommodations

d. Luxury Experiences

Area of Focus #2:

Stabilize Visitor Volume in Urban Centers

a. Resorts & Hotels

b. Attractions

c. Sports

d. Meetings, Convention and Business Travel

Area of Focus #3:

Reinvigorate and Strengthen Tourism in Rural Areas

a. Traveler Education with Emphasis on Stewardship Principles

b. Balance Business and Resident Readiness

c. Outdoor Recreation

d. Partnerships with Tribal Communities

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Leave No TracePartnership

AOT and the Leave No Trace Center for Outdoor Ethics have forged a new partnership to promote sustainable tourism practices across Arizona’s spectacular landscapes and unique destinations.

Arizona becomes the second state in the U.S. to forge a statewide partnership with Leave No Trace, after the organization’s home state of Colorado.

The partnership will build a program that ensures visitors and residents are equipped with the Leave No Trace knowledge and skills to protect Arizona’s iconic natural features while enjoying these spectacular destinations.

It begins with The Seven Principles of Leave No Trace below. More material is available on tourism.az.gov and VisitArizona.com.

The Seven Principles of Leave No Trace

PLAN AHEAD & PREPARE

STICK TO TRAILS

TRASH YOUR TRASH

LEAVE WHAT YOU FIND

BE CAREFUL WITH FIRE

RESPECT WILDLIFE

SHARE THE OUTDOORS

46.8 million Number of Domestic and International Overnight Visitors

(2.8% annual increase)

6.1 million Number of International Overnight Visitors to Arizona, Including Mexico and Canada


$25.6 billion Amount of Direct Travel Spending Generated Across Arizona


$70.1 million Amount of Direct Travel Spending Injected into Arizona’s Economy Daily


2019 Economic Impact Data

Sources: Tourism Economics, Dean Runyan Associates, updated 7/2020. Economic impact figures represent 2019 data.

194,300 Number of Industry Related Jobs Directly Generated


$7.7 billion Amount of Earnings Generated from Industry Related Jobs


$3.78 billion Amount of Local, State and Federal Tax Revenue Generated


$1,400 Taxes Generated by the Tourism Industry Reduces the Average Annual Tax Burden for Arizona Households by More Than $1,400


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For information about AOT’s research, marketing programs and media plans, please visit: Tourism.az.gov twitter @AZTourismNews

To subscribe to our eNewsletters, please visit: Tourism Tuesday (industry) Tourism.az.gov

Visit Arizona (consumer) VisitArizona.com

For information about the Arizona travel experience, please visit:

VisitArizona.com twitter @ArizonaTourism facebook-f arizonatravel instagram @Visit_Arizona

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Tourism and the Road to Recovery in Arizona

Post COVID-19

May 18, 2020

May 2020

Prepared by:

Prepared for:

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1

Introduction The outbreak of COVID-19 has affected nearly all aspects of normal life. The global health crisis has also created an unprecedented economic crisis. The sudden halt of economic activity and travel has created a devastating impact on the economy – leading to layoffs, furloughs, and unemployment eventually reaching levels not seen since the Great Depression. While the dire economic consequences are impacting businesses of all sizes and all types of industries, the tourism and hospitality industry has been one of the hardest impacted by the COVID-19 pandemic. This report, prepared by Rounds Consulting Group, Inc. (RCG), is intended to provide context on the impacts of COVID-19 on Arizona’s tourism industry and how tourism can strengthen the economic recovery of the state. This analysis was completed as part of the Arizona Office of Tourism’s (AOT) goal of positioning the state to have a quick and strong economic recovery through travel and tourism. The full extent of the economic fallout from the COVID-19 pandemic is still uncertain due to the rapidly changing circumstances and the recovery depends on how long containment measures last as well as when effective treatments/immunizations are developed. Therefore, this report reflects our perspective as of May 18, 2020. However, RCG has made extensive efforts to confirm the accuracy of the information contained in this analysis.

Key Summary Points & Recommendations

• The COVID-19 pandemic has already reduced tourism activity in the state by approximately 33% through April 2020. This will likely reach approximately 65% or more for the year as a whole.

• The economic evaluation is a comparison of the tourism activity that has fallen below the baseline trend to date and for the remainder of the year with estimates of the pent-up demand for travel that potentially could be recaptured post-pandemic.

• Under a more aggressive tourism promotion campaign by the state, it is estimated that there is an opportunity to recapture 20% or more of the lost activity that is currently occurring. However, this will occur over a 2- to 3-year period.

• The 20% recapture example equates to approximately $6.3B in recaptured travel spending. This compares to estimated economic losses of more than $32.7B that will occur from 2020 to 2022. If the recapture rate can be increased with aggressive tourism promotion over the next three or four years, each additional 10% recapture equals more than $3.1B in economic activity.

• The aggressive marketing scenario translates into more than $200M (at 20% recapture) in additional state tax collections over multi-year period when compared to the industry simply returning to the baseline trend and not recapturing lost activity. Each additional 10% recapture roughly equals $100M.

• Based on these statistics, there appears to be the potential for a high return on investment related to advanced tourism promotion between 2021 and 2023. State leaders should consider a significant increase in the tourism marketing budget for at least three or four years. Otherwise other states will be recapturing our lost economic activity.

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2

Tourism in Arizona

Overview Tourism and hospitality are key industries in Arizona. According to a recent study1, in 2018, 45.5M people visited Arizona contributing $24.4B in travel spending. Visitors from other U.S. states account for 58.6% of the state’s visitor impact. International visitors make up about 20.9% while in-state travelers make up about 20.4% of Arizona’s visitor impacts. The injection of travel spending into local communities in Arizona supports over 192,000 industry jobs across the state and the money spent by visitors generates over $2.1B in state and local tax revenues. The state collects $1.0B in tax revenues from visitor spending – about 10% of the state’s general fund. Local government collect $1.1B in tax revenues from visitor spending. These tax dollars add value to Arizona’s taxpayers as they support essential services such as public safety, education, parks, roads, and infrastructure. Without tourism, each household in Arizona would have to pay an additional $795 a year to make up the difference that comes from visitor spending. As a result of visitor monies coming in, the continued spending of tourism revenues by local businesses and employees creates a secondary impact. Although the Arizona tourism industry is primarily made up of businesses in the accommodations/food services, entertainment/recreation, transportation, and retail industries; the secondary impact reaches nearly all industry sectors in the state. These secondary impacts support another 165,000 jobs with $7.8 billion in earnings in Arizona. In total, tourism supports 357,800 jobs in Arizona – about 12.5% of the state’s total employment. About 55.7% of the total jobs supported by visitor spending are in Arizona’s primary tourism industries. The remaining 46.3% of jobs supported are in secondary supporting industries including finance, insurance, manufacturing, professional/businesses services and government. The following chart depicts the job impacts by industry. The aforementioned businesses are supported by other activities such as golf, sports entertainment, outdoor recreation, cultural amenities, among many others. Thus, the tourism industry indeed has a wide-ranging economic impact within the state.

1 Arizona Travel Impacts. Dean Runyan Associates, June 2019 https://tourism.az.gov/wp-content/uploads/2019/07/Arizona-Travel-Impacts-2000-2018.pdf

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https://tourism.az.gov/wp-content/uploads/2019/07/Arizona-Travel-Impacts-2000-2018.pdf

https://tourism.az.gov/wp-content/uploads/2019/07/Arizona-Travel-Impacts-2000-2018.pdf

3

Source: Dean Runyan Associates

COVID-19 Impact on Tourism Following the economic fallout of the Great Recession, Arizona was experiencing year-over-year growth in tourism. Arizona’s air travel, lodging sales, the number of visitors, and overall travel spending were all experiencing strong growth.

*2019 Estimate Source: Dean Runyan Associates; Rounds Consulting Group, Inc.

In the first quarter of 2020, global travel came to a near complete halt as efforts to mitigate the spread of the COVID-19 outbreak began to take effect. According to Tourism Economics2, the U.S. will see a decline of 54% this year in international visitors (about 43 million fewer travelers than 2019) assuming partial reopening of international borders in the summer. Domestic travel has nearly halted as well.

2 The Impact of COVID-19 on the United States Travel Economy. Oxford Economics, April 2020. https://www.ustravel.org/sites/default/files/media_root/document/Coronavirus2020_Impacts_April15.pdf

0 20,000 40,000 60,000 80,000 100,000 120,000

Agriculture/Food Processing

Manufacturing

Construction

Finance, Insurance & Real Estate

Other

Government

Professional & Business Services

Retail Trade

Transportation

Entertainment/Recreation

Accommodations/Food Services

Total Jobs Supported by Tourism in Arizona

$14.0

$16.0

$18.0

$20.0

$22.0

$24.0

$26.0

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019*

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AZ Annual Travel Spending

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https://www.ustravel.org/sites/default/files/media_root/document/Coronavirus2020_Impacts_April15.pdf


4

U.S. international and domestic travel spending is projected to decline by $519 billion in 2020. Containment measures have largely remained in place, but a gradual loosening of travel restrictions is expected in the summer. While international travel is not expected to return to pre-virus levels until 2024, domestic travel is expected to recover in 2021. The reduction of travel restrictions coupled with enhanced travel safety and marketing campaigns to encourage the travel among low risk domestic residents could reduce the decline in visitor spending to $401B from the $519B estimate3. In Arizona, the beginning of 2020 was showing signs of a burgeoning year for tourism. However, local travel and tourism came to a halt in mid-March 2020 when national and state stay-at-home orders took effect. Year-to-date through April, travel spending in Arizona is down by approximately 33%. In 2020, travel spending is estimated to decline by approximately 65% or more (a $16.4B in lost travel spending). By 2021, the losses increase to approximately $28.1B. By 2022, the losses accumulate to $32.7B. This extended period is due to the fact it will take time to return to the former baseline.

Source: Dean Runyan Associates; Rounds Consulting Group, Inc.

The sudden halt of economic activity created a surge in layoffs and furloughs. Since mid-March, over 500,000 Arizonans have filed for unemployment4. The tourism industry has been one of the hardest hit by the economic fallout. According to data from STR, hotel occupancy rates are down about 70% compared to last year. A 65% decline in travel spending will lead to 160,000 in job losses and $18.5B in earnings in Arizona between 2020 and 20225. Again, the losses could exceed 65%. The majority of job losses (around 56%) will be in primary tourism industries; however, supporting industries throughout the state will be impacted by the loss in business revenues and employee spending. In this scenario, the state will lose about $1.4B in tax revenues and local governments will lose $1.5B with a 65% decline between 2020 and 2022.

3 The Impact of COVID-19 on the United States Travel Economy. Oxford Economics, April 2020. https://www.ustravel.org/sites/default/files/media_root/document/Coronavirus2020_Impacts_April15.pdf 4 Weekly Unemployment Insurance Initial Claims. Arizona Office of Economic Opportunity, March 21-May 2, 2020. https://www.azcommerce.com/oeo/labor-market/unemployment/ 5 Travel impacts estimated using an IMPLAN model and the Dean Runyan Associates assumptions in the 2018 Arizona Travel Impacts report.

-$40.0

-$30.0

-$20.0

-$10.0

$0.0

2020 2021 2022

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AZ Cumulative Visitor Spending Loss

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https://www.azcommerce.com/oeo/labor-market/unemployment/

5

The COVID-19 Recovery Although domestic travel is expected to start picking up during the summer as travel restrictions are lifted and people begin to feel comfortable traveling, domestic travel will likely not fully recover until the next year or longer. International travel is not expected to fully recover for at least two to three years. However, the timing and level ultimately depends on many variables such as the effectiveness of mitigation efforts, the development of a vaccine, when people regain confidence in travel, and how quickly the economy recovers. On the bright side, many travel plans have simply been delayed and many travelers will choose to travel domestically vs. internationally. This pent-up demand will help domestic travel recover more rapidly. After a decline of 65% or more in travel spending in 2020, spending is expected to increase by about 50% annually over the next three years until it rebounds to reach the pre-virus trajectory. The high rate of growth partly has to do with basic mathematics. For example, a decline in a variable by 50% requires a later increase of 100% to return to the previous level.

*2019 Estimate; 2020-2023 Projections Note: Trend line recovery with current marketing levels. Source: Dean Runyan Associates; Arizona Office of Tourism; Rounds Consulting Group, Inc.

*2019 Estimate; 2020-2023 Projections Note: Trend line recovery with current marketing levels (non-seasonally adjusted data). Source: Dean Runyan Associates; Arizona Office of Tourism; Rounds Consulting Group, Inc.

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* 2020* 2021* 2022* 2023*

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AZ Annual Travel Spending - Conditional on Maintaining Current Marketing

Pre-Virus Trend Line

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

In B

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AZ Monthly Travel Spending - Conditional on Maintaining Current Marketing

Actual Projections


116

6

This analysis included an extensive review of publications on tourism activity, both pre- and post-pandemic. It is assumed that only a portion of the economic losses will be recovered even under an aggressive tourism promotion campaign. In this review, approximately 20% of the lost activity is recovered over a multi-year period under a scenario of aggressive marketing. The following calculations were used to derive the estimate for economic recovery potential. The strong rebound in the domestic travel market presents an opportunity for the state to mitigate the negative travel impacts and have a stronger economic recovery by capturing portions of the pent-up domestic travel demand. Additional targeted marketing and tourism support would strengthen the state’s ability to recover and benefit from the domestic pent-up demand. Just a 5.0 percentage point increase in annual growth (i.e., going from a 50% annual increase to 55%) leads to significant economic gains. This would increase travel spending above the pre-virus trajectory allowing for a quicker recovery of lost revenues. The 5.0 percentage point increase leads to the recovery of an additional $6.3B in visitor spending through 2023. However, the losses in spending due to the pandemic equal to $34.7B. This effectively represents a 20% recovery of lost activity (i.e., pent-up demand). That additional spending supports an additional 92,400 jobs and $3.6B in earnings. The state would collect $260.8M in additional tax revenues from the increase and local governments would collect $286.9M. The fact that the difference between current tourism marketing vs. a hyper aggressive policy related to marketing the state exceeds $200M, the state may want to consider shifting to this more aggressive stance, at least post-pandemic and partly into the remainder of the 2020s.

*2019 Estimate; 2020-2023 Projections Note: Trend line recovery with current marketing levels vs. above trend line recovery with aggressive marketing levels. Source: Dean Runyan Associates; Arizona Office of Tourism; Rounds Consulting Group, Inc.

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$40.0

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* 2020* 2021* 2022* 2023*

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AZ Annual Travel Spending - Current vs. Aggressive Marketing

Actual Current Aggressive


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7

*2019 Estimate; 2020-2023 Projections Note: Trend line recovery with current marketing levels vs. above trend line recovery with aggressive marketing levels (non-seasonally adjusted data). Source: Dean Runyan Associates; Arizona Office of Tourism; Rounds Consulting Group, Inc.

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

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AZ Monthly Travel Spending - Current vs. Aggressive Marketing

Actual Current Aggressive


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1100 New York Avenue, NW Suite 450 Washington, D.C. 20005 | TEL 202.408.8422 | ustravel.org 1

NATIONAL FINDINGS

Travel spending growth continues to gather momentum, rising 5% in the week ending August 15th. Weekly travel spending measured 44% below its prior year levels, the best mark seen since the week ending March 14th.

National weekly travel spending expanded for the fifth consecutive week, registering $12.9 billion. Growth was fueled by air trips, which tallied 29% of 2019 levels - a 5% increase from the prior week – while car trips continued to remain flat.

The travel economy measured 44% below last year’s levels for the week ending August 15th, resulting in a $10.0 billion loss when compared to the same week a year ago.

Since the beginning of March, the COVID-19 pandemic has resulted in nearly $341 billion in losses for the U.S. travel economy.

WEEKLY CORONAVIRUS IMPACT ON TRAVEL EXPENDITURES IN THE U.S.AUGUST 20, 2020 UPDATE

National Weekly Travel Spending ($ billions)

$0

$5

$10

$15

$20

$25

Source: Tourism Economics

2/29 3/28 4/25 5/23 6/20

$20.3

$2.6

$13.2 $11.5 $11.9$12.4

$12.9

$11.6$11.5

7/18 8/15

National Weekly Travel Spending ($ billions, year-over-year change)

-$10

-$5

$0

$5

0%

25%

-25%

-50%

-75%

-100%

-$15

Net change

% change (right)

-$20

-$25


-58%

6/13 6/20

-55%

6/27

-52%

7/4

-44% -50% -51%

7/11 7/18

-51%

7/25

-48%

8/1

-46%

8/8

-44%

8/15

Weekly Travel Spending Losses Through August 15th

($ billions)$0

Source: Tourism EconomicsUp to 7/18 7/25 8/1 8/8 8/15 Total

-$297.1-$11.9 -$11.0 -$10.6

-$340.5

-$10.0

-$200

-$250

-$300

-$350

-$400

-$150

-$100

-$50

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NATIONAL FINDINGS (CONTINUED)

The first half of August has seen $22 billion in travel spending losses, putting the month on pace for $46 billion, which would mark a 10% improvement over July and the best result since the pandemic began.

Travel Spending Loss by Month Through August 15th

($ billions)

-$350

-$300

-$200

-$250

-$150

-$50

-$100

$0

MarchSource: Tourism Economics

April May June July

-$50.7

-$83.5

-$76.9

-$56.1-$51.2

August

-$22.1

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REGIONAL FINDINGS

Travel spending losses saw slight downticks for the week ending August 15th to $2.2 billion in the Northeast, $1.5 billion in the Midwest, $3.2 billion in the South, and $3.1 billion in the West.

Over the past 24 weeks, cumulative losses have tallied $68.6 billion for the Northeast, $53.0 billion for the Midwest, $115.3 billion for the South, and $103.5 billion for the West.

The Midwest (-40%) and West (-46%) recorded four- and three-percentage point improvements. The Northeast (-52%) and South (-39%) saw more muted one- and two-percentage point improvements, respectively.

Weekly Travel Spending($ billions, year-over-year change)

-$1

$0

-$2

Northeast

-$3

-$4

-$5


-$2.2

-$3.2 -$3.1

Midwest South West

7/25 8/1 8/8 8/15

-$1.5

Weekly Travel Spending(%, year-over-year change)

-20%

0%

-40%

Northeast

-60%

-70%

-50%

30%

-10%


-52%

-40% -39%

-46%

Midwest South West

7/25 8/1 8/8 8/15

Travel Spending Loss Week of August 15th

($ billions)

-$12

-$8

-$10

-$6

-$2

-$4

$0

NortheastSource: Tourism Economics

Midwest South West National

-$2.2-$1.5

-$3.2

-$3.1 -$10.0

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REGIONAL FINDINGS (CONTINUED)

The numbers of states and territories experiencing losses exceeding 50% fell from nine to seven - a result of notable improvements from both Alaska and Nevada.

The number of states posting weekly losses of less than 40% increased from 28 states to 31 states, of which, 10 states have reached weekly losses of less than 30%. The Northeast and the Pacific continue to trail the rest of the country in the travel recovery process. Connecticut and New Hampshire are the only states within these regions that are ranked among the 20 best-performing markets. Despite the lag in these regions, many states showed promising signs this week, particularly New York, which after seeing travel spending shrink 7% over the prior four weeks, experienced a 9% increase in travel spending.

The continual depressed level of travel spending has produced a loss of $43.6 billion in federal, state, and local tax revenue since March 1st.

This includes $27.1 billion in federal taxes, $10.0 billion in state taxes, and $6.6 billion in local tax revenue.

Weekly Travel Spending (Week Ending August 15)(%, year-over-year change)

Best 10 MarketsWorst 10 Markets

0%

-20%

-40%

-60%

-80%

-100%


National

MSSDMT ID IA DE WY CT AR AL

VT CA MN AK IL WA MANY DC

HI

National Tax Revenue Losses on Travel Spending($ millions, year-over-year change)

-$5K

-$10K

$0

FederalSource: Tourism Economics

-$27,080

State

-$9,970

Local

-$6,571

Up to 7/18 7/25 8/1

8/8 8/15

-$15K

-$20K

-$25K

-$30K

123

NATIONAL AND REGIONAL TABLES

TOTAL WEEKLY TRAVEL SPENDING ($ BILLIONS) WEEK ENDING… 6/27 7/4 7/11 7/18 7/25 8/1 8/8 8/15

United States 11.3 13.2 11.5 11.5 11.6 11.9 12.4 12.9

Northeast 1.6 2.0 1.7 1.8 1.8 1.9 2.0 2.0

New England 0.4 0.5 0.4 0.5 0.5 0.5 0.5 0.6

Middle Atlantic 1.2 1.5 1.3 1.3 1.3 1.3 1.4 1.5

Midwest 1.9 2.4 2.1 2.0 2.0 2.0 2.1 2.2

East North Central 1.1 1.4 1.2 1.1 1.2 1.2 1.2 1.2

West North Central 0.8 1.0 0.9 0.8 0.8 0.9 0.9 1.0

South 4.6 5.1 4.5 4.5 4.6 4.7 4.9 5.0

South Atlantic 2.7 3.0 2.6 2.6 2.7 2.7 2.8 2.9

East South Central 0.7 0.8 0.7 0.7 0.7 0.7 0.7 0.7

West South Central 1.2 1.4 1.2 1.2 1.2 1.3 1.4 1.4

West 3.2 3.6 3.2 3.2 3.2 3.4 3.5 3.7

Mountain 1.3 1.5 1.3 1.3 1.3 1.4 1.4 1.6

Pacific 1.9 2.2 1.9 1.9 1.9 2.0 2.0 2.1

YEAR-OVER-YEAR NET CHANGE IN WEEKLY TRAVEL SPENDING ($ BILLIONS)WEEK ENDING... 6/27 7/4 7/11 7/18 7/25 8/1 8/8 8/15

United States -12.4 -10.3 -12.0 -12.0 -11.9 -11.0 -10.6 -10.0

Northeast -2.8 -2.3 -2.6 -2.6 -2.6 -2.4 -2.3 -2.2

New England -0.7 -0.5 -0.6 -0.6 -0.6 -0.5 -0.5 -0.5

Middle Atlantic -2.1 -1.8 -2.0 -2.0 -2.0 -1.9 -1.8 -1.7

Midwest -1.9 -1.4 -1.7 -1.8 -1.8 -1.7 -1.6 -1.5

East North Central -1.2 -0.9 -1.1 -1.1 -1.1 -1.1 -1.0 -1.0

West North Central -0.7 -0.5 -0.7 -0.7 -0.7 -0.6 -0.6 -0.5

South -3.9 -3.3 -4.0 -3.9 -3.9 -3.6 -3.4 -3.2

South Atlantic -2.5 -2.1 -2.5 -2.4 -2.4 -2.3 -2.2 -2.1

East South Central -0.5 -0.3 -0.4 -0.4 -0.4 -0.4 -0.4 -0.4

West South Central -1.0 -0.9 -1.0 -1.0 -1.0 -0.9 -0.8 -0.8

West -3.8 -3.3 -3.7 -3.8 -3.7 -3.4 -3.3 -3.1

Mountain -1.2 -1.0 -1.2 -1.2 -1.1 -1.0 -1.0 -0.9

Pacific -2.6 -2.3 -2.6 -2.6 -2.5 -2.4 -2.3 -2.2

YEAR-OVER YEAR % CHANGE IN WEEKLY TRAVEL SPENDINGWEEK ENDING... 6/27 7/4 7/11 7/18 7/25 8/1 8/8 8/15

United States -52% -44% -51% -51% -51% -48% -46% -44%

Northeast -63% -53% -60% -59% -59% -56% -53% -52%

New England -63% -49% -58% -57% -56% -51% -47% -44%

Middle Atlantic -63% -54% -60% -60% -60% -58% -55% -54%

Midwest -50% -37% -46% -47% -47% -45% -44% -40%

East North Central -52% -39% -47% -49% -48% -47% -46% -44%

West North Central -48% -35% -44% -45% -45% -42% -41% -36%

South -46% -39% -47% -46% -46% -43% -41% -39%

South Atlantic -48% -41% -49% -48% -48% -46% -44% -42%

East South Central -40% -31% -40% -39% -38% -37% -33% -33%

West South Central -46% -39% -46% -45% -45% -40% -38% -35%

West -55% -48% -54% -54% -53% -50% -49% -46%

Mountain -48% -41% -47% -48% -46% -43% -41% -36%

Pacific -58% -51% -58% -58% -57% -54% -53% -51%


124

NATIONAL AND REGIONAL TABLES

YEAR-OVER-YEAR NET CHANGE IN WEEKLY FEDERAL TAX RETURNS ($ MILLIONS)WEEK ENDING... 6/27 7/4 7/11 7/18 7/25 8/1 8/8 8/15

United States -995 -823 -959 -961 -946 -882 -847 -802

Northeast -219 -183 -206 -206 -205 -191 -183 -178

New England -51 -40 -47 -46 -45 -40 -37 -36

Middle Atlantic -168 -144 -159 -160 -160 -151 -146 -143

Midwest -163 -119 -148 -153 -148 -142 -139 -127

East North Central -107 -79 -97 -101 -98 -94 -93 -86

West North Central -56 -41 -51 -52 -50 -48 -46 -41

South -308 -257 -309 -303 -300 -277 -263 -249

South Atlantic -195 -165 -197 -194 -190 -180 -172 -163

East South Central -32 -24 -31 -31 -30 -28 -26 -26

West South Central -81 -67 -80 -79 -80 -69 -66 -61

West -306 -264 -297 -300 -293 -272 -262 -246

Mountain -92 -79 -89 -91 -88 -80 -75 -66

Pacific -213 -185 -208 -209 -206 -192 -187 -181

YEAR-OVER-YEAR NET CHANGE IN WEEKLY STATE TAX RETURNS ($ MILLIONS)WEEK ENDING... 6/27 7/4 7/11 7/18 7/25 8/1 8/8 8/15

United States -363 -298 -350 -350 -345 -322 -307 -290

Northeast -75 -62 -70 -70 -69 -64 -60 -59

New England -20 -16 -19 -18 -18 -16 -14 -13

Middle Atlantic -55 -46 -51 -51 -51 -48 -46 -45

Midwest -66 -48 -60 -62 -60 -57 -56 -51



South -115 -96 -116 -113 -112 -104 -98 -93

South Atlantic -69 -59 -71 -69 -68 -65 -61 -58



West -107 -93 -104 -106 -103 -96 -93 -88

Mountain -31 -26 -30 -31 -30 -27 -26 -23

Pacific -76 -66 -74 -75 -73 -69 -67 -65

YEAR-OVER YEAR NET CHANGE IN WEEKLY LOCAL TAX REVENUE ($ MILLIONS)WEEK ENDING... 6/27 7/4 7/11 7/18 7/25 8/1 8/8 8/15

United States -243 -205 -236 -237 -235 -219 -212 -201

Northeast -71 -61 -67 -68 -68 -64 -63 -61

New England -10 -8 -9 -9 -9 -8 -7 -7

Middle Atlantic -61 -53 -58 -59 -59 -56 -55 -54

Midwest -29 -21 -26 -27 -26 -25 -24 -22



South -80 -68 -81 -79 -79 -73 -70 -66

South Atlantic -55 -48 -56 -55 -54 -52 -50 -47



West -64 -55 -62 -63 -62 -57 -55 -51

Mountain -22 -19 -22 -22 -22 -20 -18 -16

Pacific -41 -36 -40 -41 -40 -37 -36 -35


125

TOTAL WEEKLY TRAVEL SPENDING ($ MILLIONS)WEEK ENDING... 6/27 7/4 7/11 7/18 7/25 8/1 8/8 8/15

Alabama 157 180 157 156 162 163 173 171

Alaska 29 33 29 30 29 28 28 30

Arizona 296 318 281 270 274 291 279 297

Arkansas 90 113 95 101 103 104 107 113

California 1,436 1,659 1,439 1,426 1,455 1,510 1,562 1,631

Colorado 231 264 251 250 257 266 282 303

Connecticut 120 152 117 123 126 137 180 188

Delaware 29 37 30 28 33 34 33 35

Florida 1,140 1,144 1,061 1,082 1,076 1,059 1,127 1,198

Georgia 380 459 378 388 401 421 423 425

Hawaii 89 99 91 93 96 90 99 99

Idaho 78 90 79 79 83 83 84 89

Illinois 330 453 370 355 371 364 364 418

Indiana 146 169 163 165 161 149 161 170

Iowa 109 131 119 119 112 122 114 146

Kansas 110 125 111 112 109 110 114 117

Kentucky 104 133 109 115 118 115 128 126

Louisiana 144 150 158 159 148 159 170 173

Maine 37 42 42 45 48 52 54 59

Maryland 203 246 202 209 216 211 213 239

Massachusetts 156 229 182 185 187 209 203 212

Michigan 288 370 320 296 310 314 315 312

Minnesota 145 193 154 151 160 161 161 169

Mississippi 140 152 139 147 145 142 150 150

Missouri 171 203 178 172 177 167 185 201

Montana 60 67 67 68 70 69 74 77

Nebraska 59 77 70 66 70 72 73 77

Nevada 384 416 373 364 377 400 433 503

New Hampshire 42 54 48 50 52 55 57 61

New Jersey 334 407 368 387 395 406 458 457

New Mexico 90 100 90 83 84 88 91 97

New York 533 642 542 516 497 517 503 547

North Carolina 316 376 307 314 321 316 345 339

North Dakota 36 42 36 36 38 40 40 41

Ohio 332 401 338 333 336 337 346 348

Oklahoma 116 134 117 118 125 118 124 133

Oregon 137 163 144 141 147 156 150 157

Pennsylvania 347 452 392 400 418 421 463 452

Rhode Island 22 30 24 25 25 27 28 27

South Carolina 211 211 186 189 193 199 196 201

South Dakota 45 53 49 50 51 51 54 62

Tennessee 270 303 263 261 263 272 279 279

Texas 874 976 845 859 846 921 950 997

Utah 122 142 127 122 132 127 133 133

Vermont 24 29 28 26 26 28 28 30

Virginia 280 352 300 299 303 307 318 319

Washington 176 213 180 181 182 195 204 202

Washington D.C. 64 84 69 67 67 69 71 72

West Virginia 52 59 53 53 51 52 56 56

Wisconsin 134 167 146 139 130 143 142 150

Wyoming 48 54 53 52 54 55 57 57

Puerto Rico 41 56 58 56 38 38 37 34

STATE TABLES


126

STATE TABLES

YEAR-OVER-YEAR NET CHANGE IN WEEKLY TRAVEL SPENDING ($ MILLIONS)WEEK ENDING... 6/27 7/4 7/11 7/18 7/25 8/1 8/8 8/15

Alabama -89 -63 -86 -87 -81 -75 -65 -67

Alaska -31 -27 -30 -29 -30 -30 -30 -28

Arizona -163 -136 -173 -184 -180 -153 -165 -147

Arkansas -68 -43 -61 -55 -53 -48 -46 -39

California -1,726 -1,470 -1,690 -1,704 -1,675 -1,549 -1,497 -1,428

Colorado -230 -192 -206 -207 -200 -180 -165 -144

Connecticut -140 -105 -140 -134 -131 -114 -72 -64

Delaware -19 -11 -18 -20 -15 -13 -14 -12

Florida -1,050 -1,024 -1,107 -1,086 -1,093 -1,060 -993 -921

Georgia -281 -195 -276 -266 -252 -218 -216 -214

Hawaii -467 -451 -460 -458 -454 -448 -439 -439

Idaho -43 -29 -40 -41 -37 -34 -33 -27

Illinois -560 -429 -511 -526 -510 -497 -497 -443

Indiana -116 -90 -96 -94 -99 -105 -93 -83

Iowa -88 -64 -76 -76 -83 -69 -77 -45

Kansas -64 -47 -61 -60 -63 -59 -54 -51

Kentucky -114 -83 -106 -100 -98 -96 -83 -85

Louisiana -134 -126 -117 -117 -127 -110 -99 -96

Maine -60 -55 -54 -51 -49 -42 -40 -35

Maryland -185 -137 -181 -174 -167 -164 -161 -136

Massachusetts -359 -280 -328 -325 -322 -289 -295 -285

Michigan -208 -121 -171 -195 -181 -166 -165 -168

Minnesota -184 -133 -172 -175 -165 -158 -158 -150

Mississippi -54 -40 -53 -46 -47 -46 -38 -38

Missouri -154 -119 -144 -149 -145 -147 -129 -113

Montana -45 -36 -36 -35 -33 -32 -27 -24

Nebraska -57 -37 -45 -49 -44 -40 -40 -35

Nevada -520 -479 -522 -531 -518 -475 -441 -372

New Hampshire -51 -38 -43 -42 -39 -35 -33 -29

New Jersey -394 -313 -353 -334 -326 -298 -246 -247

New Mexico -74 -63 -73 -80 -79 -72 -68 -63

New York -1,235 -1,109 -1,209 -1,235 -1,253 -1,194 -1,208 -1,164

North Carolina -243 -177 -246 -239 -232 -225 -195 -202

North Dakota -29 -23 -28 -28 -26 -23 -23 -22

Ohio -310 -234 -298 -303 -300 -284 -275 -273

Oklahoma -81 -61 -78 -77 -70 -72 -66 -58

Oregon -139 -110 -129 -132 -126 -111 -117 -110

Pennsylvania -464 -351 -411 -403 -385 -364 -322 -333

Rhode Island -27 -18 -24 -23 -23 -20 -20 -20

South Carolina -116 -113 -137 -135 -130 -117 -120 -115

South Dakota -27 -18 -22 -21 -20 -19 -16 -8

Tennessee -198 -161 -201 -202 -200 -181 -174 -174

Texas -753 -634 -765 -752 -764 -653 -624 -578

Utah -87 -64 -79 -85 -75 -75 -69 -69

Vermont -34 -28 -29 -32 -31 -28 -28 -26

Virginia -290 -212 -265 -266 -261 -245 -234 -232

Washington -255 -214 -247 -245 -244 -222 -213 -215

Washington D.C. -225 -203 -218 -220 -219 -211 -209 -208

West Virginia -41 -33 -38 -38 -41 -38 -33 -33

Wisconsin -133 -97 -118 -125 -134 -115 -116 -108

Wyoming -30 -24 -25 -26 -24 -22 -20 -19

Puerto Rico -65 -49 -48 -49 -68 -65 -66 -69


127

STATE TABLES

YEAR-OVER-YEAR % CHANGE IN WEEKLY TRAVEL SPENDINGWEEK ENDING... 6/27 7/4 7/11 7/18 7/25 8/1 8/8 8/15

Alabama -36% -26% -35% -36% -33% -31% -27% -28%

Alaska -52% -44% -51% -49% -51% -52% -52% -48%

Arizona -35% -30% -38% -40% -40% -34% -37% -33%

Arkansas -43% -27% -39% -35% -34% -32% -30% -26%

California -55% -47% -54% -54% -54% -51% -49% -47%

Colorado -50% -42% -45% -45% -44% -40% -37% -32%

Connecticut -54% -41% -54% -52% -51% -45% -28% -25%

Delaware -40% -24% -38% -41% -31% -28% -30% -25%

Florida -48% -47% -51% -50% -50% -50% -47% -43%

Georgia -43% -30% -42% -41% -39% -34% -34% -33%

Hawaii -84% -82% -84% -83% -83% -83% -82% -82%

Idaho -35% -24% -34% -34% -31% -29% -28% -24%

Illinois -63% -49% -58% -60% -58% -58% -58% -51%

Indiana -44% -35% -37% -36% -38% -41% -37% -33%

Iowa -44% -33% -39% -39% -43% -36% -40% -24%

Kansas -37% -27% -36% -35% -37% -35% -32% -30%

Kentucky -52% -38% -49% -47% -45% -46% -39% -40%

Louisiana -48% -46% -42% -42% -46% -41% -37% -36%

Maine -62% -57% -56% -53% -51% -45% -43% -38%

Maryland -48% -36% -47% -45% -44% -44% -43% -36%

Massachusetts -70% -55% -64% -64% -63% -58% -59% -57%

Michigan -42% -25% -35% -40% -37% -35% -34% -35%

Minnesota -56% -41% -53% -54% -51% -50% -50% -47%

Mississippi -28% -21% -28% -24% -25% -25% -20% -20%

Missouri -47% -37% -45% -46% -45% -47% -41% -36%

Montana -43% -35% -35% -34% -32% -32% -26% -23%

Nebraska -49% -33% -39% -43% -39% -35% -35% -32%

Nevada -58% -54% -58% -59% -58% -54% -50% -42%

New Hampshire -55% -41% -47% -46% -43% -39% -37% -32%

New Jersey -54% -43% -49% -46% -45% -42% -35% -35%

New Mexico -45% -38% -45% -49% -48% -45% -43% -39%

New York -70% -63% -69% -71% -72% -70% -71% -68%

North Carolina -43% -32% -45% -43% -42% -42% -36% -37%

North Dakota -44% -35% -43% -44% -41% -37% -36% -35%

Ohio -48% -37% -47% -48% -47% -46% -44% -44%

Oklahoma -41% -31% -40% -39% -36% -38% -35% -30%

Oregon -51% -40% -47% -48% -46% -42% -44% -41%

Pennsylvania -57% -44% -51% -50% -48% -46% -41% -42%

Rhode Island -55% -37% -49% -48% -48% -42% -41% -43%

South Carolina -35% -35% -42% -42% -40% -37% -38% -36%

South Dakota -37% -26% -31% -30% -28% -27% -22% -11%

Tennessee -42% -35% -43% -44% -43% -40% -38% -38%

Texas -46% -39% -48% -47% -47% -41% -40% -37%

Utah -42% -31% -38% -41% -36% -37% -34% -34%

Vermont -58% -49% -51% -55% -54% -50% -50% -46%

Virginia -51% -38% -47% -47% -46% -44% -42% -42%

Washington -59% -50% -58% -57% -57% -53% -51% -52%

Washington D.C. -78% -71% -76% -77% -77% -75% -75% -74%

West Virginia -44% -35% -42% -42% -45% -42% -37% -37%

Wisconsin -50% -37% -45% -47% -51% -45% -45% -42%

Wyoming -39% -31% -32% -33% -31% -28% -26% -25%

Puerto Rico -61% -47% -45% -47% -64% -63% -64% -67%


128

YEAR-OVER-YEAR NET CHANGE IN WEEKLY FEDERAL TAX REVENUE($ MILLIONS)WEEK ENDING... 6/27 7/4 7/11 7/18 7/25 8/1 8/8 8/15

Alabama -5 -3 -4 -4 -4 -4 -3 -3

Alaska -3 -3 -3 -3 -3 -3 -3 -3

Arizona -11 -9 -12 -13 -12 -10 -11 -10

Arkansas -4 -3 -4 -3 -3 -3 -3 -3

California -134 -114 -131 -132 -130 -120 -116 -110

Colorado -27 -22 -24 -24 -23 -21 -19 -17

Connecticut -10 -8 -10 -10 -10 -8 -5 -5

Delaware -2 -1 -2 -2 -1 -1 -1 -1

Florida -76 -75 -81 -79 -80 -77 -72 -67

Georgia -35 -24 -34 -33 -31 -27 -27 -26

Hawaii -38 -37 -38 -38 -37 -37 -36 -36

Idaho -3 -2 -3 -3 -3 -2 -2 -2

Illinois -62 -47 -57 -58 -56 -55 -55 -49

Indiana -8 -6 -7 -7 -7 -7 -7 -6

Iowa -5 -3 -4 -4 -4 -4 -4 -2

Kansas -3 -3 -3 -3 -3 -3 -3 -3

Kentucky -8 -6 -8 -7 -7 -7 -6 -6

Louisiana -8 -7 -7 -7 -7 -6 -6 -6

Maine -3 -3 -3 -3 -3 -2 -2 -2

Maryland -20 -15 -20 -19 -18 -18 -18 -15

Massachusetts -31 -24 -28 -28 -28 -25 -25 -24

Michigan -18 -10 -15 -17 -15 -14 -14 -14

Minnesota -27 -20 -26 -26 -25 -23 -23 -22

Mississippi -3 -2 -3 -3 -3 -3 -2 -2

Missouri -13 -10 -12 -12 -12 -12 -11 -9

Montana -3 -2 -2 -2 -2 -2 -2 -1

Nebraska -4 -3 -3 -4 -3 -3 -3 -3

Nevada -37 -34 -37 -38 -37 -34 -31 -26

New Hampshire -3 -2 -2 -2 -2 -2 -2 -2

New Jersey -29 -23 -26 -25 -24 -22 -18 -18

New Mexico -4 -3 -3 -4 -4 -3 -3 -3

New York -110 -99 -108 -110 -112 -106 -108 -104

North Carolina -18 -13 -18 -17 -17 -16 -14 -15

North Dakota -2 -1 -2 -2 -2 -1 -1 -1

Ohio -20 -15 -19 -19 -19 -18 -17 -17

Oklahoma -5 -4 -5 -5 -4 -4 -4 -3

Oregon -13 -10 -12 -12 -12 -10 -11 -10

Pennsylvania -29 -22 -25 -25 -24 -22 -20 -21

Rhode Island -2 -1 -2 -2 -2 -2 -2 -2

South Carolina -6 -6 -7 -7 -7 -6 -7 -6

South Dakota -1 -1 -1 -1 -1 -1 -1 0

Tennessee -16 -13 -16 -16 -16 -15 -14 -14

Texas -64 -54 -65 -64 -65 -55 -53 -49

Utah -7 -5 -6 -6 -6 -6 -5 -5

Vermont -2 -1 -2 -2 -2 -1 -1 -1

Virginia -19 -14 -17 -17 -17 -16 -15 -15

Washington -25 -21 -24 -24 -24 -22 -21 -21

Washington D.C. -18 -16 -17 -17 -17 -17 -17 -17

West Virginia -2 -1 -2 -2 -2 -2 -1 -1

Wisconsin -11 -8 -9 -10 -11 -9 -9 -9

Wyoming -2 -1 -1 -1 -1 -1 -1 -1

Puerto Rico -3 -2 -2 -2 -3 -3 -3 -3

STATE TABLES


129

STATE TABLES

YEAR-OVER-YEAR NET CHANGE IN WEEKLY STATE TAX REVENUE ($ MILLIONS)WEEK ENDING... 6/27 7/4 7/11 7/18 7/25 8/1 8/8 8/15

Alabama -2 -2 -2 -2 -2 -2 -2 -2

Alaska 0 0 0 0 0 0 0 0

Arizona -5 -4 -5 -5 -5 -4 -5 -4

Arkansas -3 -2 -2 -2 -2 -2 -2 -1

California -51 -43 -49 -50 -49 -45 -44 -42

Colorado -5 -4 -5 -5 -5 -4 -4 -3

Connecticut -6 -5 -6 -6 -6 -5 -3 -3

Delaware 0 0 0 0 0 0 0 0

Florida -31 -30 -32 -32 -32 -31 -29 -27

Georgia -10 -7 -9 -9 -9 -7 -7 -7

Hawaii -17 -17 -17 -17 -17 -17 -16 -16

Idaho -1 -1 -1 -1 -1 -1 -1 -1

Illinois -21 -16 -19 -20 -19 -18 -18 -16

Indiana -4 -3 -3 -3 -3 -4 -3 -3

Iowa -3 -2 -3 -3 -3 -3 -3 -2

Kansas -2 -1 -2 -2 -2 -2 -2 -2

Kentucky -4 -3 -3 -3 -3 -3 -3 -3

Louisiana -4 -4 -3 -3 -4 -3 -3 -3

Maine -2 -2 -2 -2 -1 -1 -1 -1

Maryland -6 -5 -6 -6 -6 -6 -5 -5

Massachusetts -10 -8 -9 -9 -9 -8 -8 -8

Michigan -9 -5 -8 -9 -8 -7 -7 -7

Minnesota -10 -7 -10 -10 -9 -9 -9 -8

Mississippi -2 -2 -2 -2 -2 -2 -1 -2

Missouri -4 -3 -4 -4 -4 -4 -3 -3

Montana -1 -1 -1 -1 -1 -1 0 0

Nebraska -2 -1 -1 -1 -1 -1 -1 -1

Nevada -12 -11 -12 -12 -12 -11 -10 -9

New Hampshire 0 0 0 0 0 0 0 0

New Jersey -11 -9 -10 -9 -9 -8 -7 -7

New Mexico -3 -3 -3 -3 -3 -3 -3 -3

New York -31 -28 -31 -31 -32 -30 -31 -29

North Carolina -8 -6 -8 -8 -8 -8 -7 -7

North Dakota -1 -1 -1 -1 -1 -1 -1 -1

Ohio -9 -7 -9 -9 -9 -8 -8 -8

Oklahoma -3 -2 -3 -3 -3 -3 -2 -2

Oregon -2 -2 -2 -2 -2 -2 -2 -2

Pennsylvania -12 -9 -11 -11 -10 -10 -9 -9

Rhode Island -1 0 -1 -1 -1 0 0 0

South Carolina -5 -4 -5 -5 -5 -5 -5 -5

South Dakota -1 -1 -1 -1 -1 -1 0 0

Tennessee -7 -6 -7 -7 -7 -7 -6 -6

Texas -21 -18 -21 -21 -21 -18 -17 -16

Utah -3 -2 -3 -3 -3 -3 -3 -3

Vermont -1 -1 -1 -1 -1 -1 -1 -1

Virginia -8 -6 -7 -7 -7 -7 -7 -7

Washington -6 -5 -5 -5 -5 -5 -5 -5

Washington D.C. 0 0 0 0 0 0 0 0

West Virginia -2 -1 -2 -2 -2 -2 -2 -2

Wisconsin -5 -4 -5 -5 -5 -4 -4 -4

Wyoming -1 0 0 0 0 0 0 0

Puerto Rico 0 0 0 0 0 0 0 0


130

STATE TABLES

YEAR-OVER-YEAR NET CHANGE IN LOCAL TOTAL TAX REVENUE ($ MILLIONS) WEEK ENDING… 6/27 7/4 7/11 7/18 7/25 8/1 8/8 8/15

Alabama -1 -1 -1 -1 -1 -1 -1 -1

Alaska -1 -1 -1 -1 -1 -1 -1 -1

Arizona -3 -2 -3 -3 -3 -2 -3 -2

Arkansas -1 -1 -1 -1 -1 -1 -1 -1

California -32 -27 -31 -31 -31 -29 -28 -26

Colorado -4 -4 -4 -4 -4 -3 -3 -3

Connecticut -2 -1 -2 -1 -1 -1 -1 -1

Delaware 0 0 0 0 0 0 0 0

Florida -22 -21 -23 -23 -23 -22 -21 -19

Georgia -5 -4 -5 -5 -5 -4 -4 -4

Hawaii -4 -4 -4 -4 -4 -4 -4 -4

Idaho 0 0 0 0 0 0 0 0

Illinois -9 -7 -8 -9 -8 -8 -8 -7

Indiana -2 -1 -1 -1 -1 -1 -1 -1

Iowa -1 -1 -1 -1 -1 -1 -1 0

Kansas -1 -1 -1 -1 -1 -1 -1 -1

Kentucky -1 -1 -1 -1 -1 -1 -1 -1

Louisiana -2 -2 -2 -2 -2 -2 -2 -1

Maine -1 -1 -1 -1 -1 -1 -1 0

Maryland -5 -3 -4 -4 -4 -4 -4 -3

Massachusetts -6 -5 -5 -5 -5 -5 -5 -5

Michigan -2 -1 -2 -2 -2 -1 -1 -1

Minnesota -4 -3 -4 -4 -4 -4 -4 -4

Mississippi -1 -1 -1 -1 -1 -1 0 0

Missouri -2 -2 -2 -2 -2 -2 -2 -2

Montana 0 0 0 0 0 0 0 0

Nebraska -1 -1 -1 -1 -1 -1 -1 -1

Nevada -12 -11 -12 -12 -12 -11 -10 -9

New Hampshire -1 -1 -1 -1 -1 -1 0 0

New Jersey -6 -5 -6 -5 -5 -5 -4 -4

New Mexico -1 -1 -1 -1 -1 -1 -1 -1

New York -49 -44 -48 -49 -50 -47 -48 -46

North Carolina -5 -4 -5 -5 -5 -5 -4 -4

North Dakota -1 -1 -1 -1 -1 -1 -1 -1

Ohio -5 -4 -5 -5 -5 -5 -5 -5

Oklahoma -2 -1 -2 -1 -1 -1 -1 -1

Oregon -2 -1 -2 -2 -1 -1 -1 -1

Pennsylvania -6 -4 -5 -5 -5 -4 -4 -4

Rhode Island 0 0 0 0 0 0 0 0

South Carolina -2 -2 -3 -3 -3 -2 -2 -2

South Dakota 0 0 0 0 0 0 0 0

Tennessee -4 -3 -4 -4 -4 -4 -3 -3

Texas -13 -11 -14 -13 -14 -12 -11 -10

Utah -1 -1 -1 -1 -1 -1 -1 -1

Vermont -1 0 0 -1 -1 0 0 0

Virginia -5 -4 -5 -5 -5 -4 -4 -4

Washington -3 -3 -3 -3 -3 -3 -3 -3

Washington D.C. -10 -9 -10 -10 -10 -10 -10 -9

West Virginia 0 0 0 0 0 0 0 0

Wisconsin -2 -1 -2 -2 -2 -2 -2 -1

Wyoming 0 0 0 0 0 0 0 0

Puerto Rico -4 -3 -3 -3 -4 -4 -4 -4


131


This analysis was conducted by Tourism Economics, an Oxford Economics Company, with data inputs from STR, Airline Data Inc, the Transportation Security Administration, and the U.S. Travel Association.

About the U.S. Travel AssociationThe U.S. Travel Association is the national, non-profit organization representing all components of the travel industry that generates $2.6 trillion in economic output. It is the voice for the collective interests of the U.S. travel industry and the association’s 1,350 member organizations. U.S. Travel’s mission is to promote and facilitate increased travel to and within the United States. For more information, visit www.ustravel.org.

About Tourism EconomicsTourism Economics is an Oxford Economics company with a singular objective: combine an understanding of the travel sector with proven economic tools to answer the most important questions facing our clients. More than 500 companies, associations, and destination work with Tourism Economics every year as a research partner. We bring decades of experience to every engagement to help our clients make better marketing, investment, and policy decisions.

The U.S. Travel Association and Tourism Economics wish to thank the following organizations for their significant contributions:

Airline Data Inc has been considered the Gold Standard for supplying quality U.S. commercial airline data for over 30 years. Our online tool, The Hub, delivers detailed airline schedules, leakage, and full passenger itinerary data on one platform – all at cost-effective rates. Clients agree that our proprietary reconciliation process instills a high level of confidence in understanding market dynamics that are not found in data provided by other vendors.

STR provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors. We deliver data that is confidential, accurate and actionable, and our comprehensive solutions empower our clients to strategize and compete within their markets.

Arrivalist is the leading location intelligence platform in the travel industry. The company uses multiple location data sets to provide actionable insights on consumer behavior, competitive share, media effectiveness, and market trends. Over 200 travel marketers, including 100 Cities, 40 US states, and 4 of the top 10 US Theme Parks, use these insights to inform media strategy, operations, and destination development. Arrivalist is headquartered in New York City, with offices in San Francisco and Toronto.

As travel has begun to resume, Tourism Economics has adjusted the model to capture the shift from fly to drive travel. This produced an upward revision to travel spending that begins the week ending May 23.

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Digital Version 2020 of the Arizona Official State Travel Guide

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