MRV Industry Overview

The Oregon Tourism Industry &
Travel Oregon

Oregon 2009 Visitor Report, Longwoods International
Available at: www.TravelOregon.com/Industry

How does this translate in
Oregon?

How does this translate in
Oregon?
• 88,000 Oregonians directly employed (2010)
• Direct: restaurants, hotels, attractions, guiding &
outfitter businesses, tour operators, visitor
information centers, convention and visitor
bureaus
• 39,600 jobs supported indirectly (2010)
• Indirect: gas stations, charter boats, wineries,
taxis, shopping centers, printers, art galleries
and more…

Tourism: Direct Employment
1991-2009

100
90
38%
80
70 Thousands
60
50
40
30
1991 1994 1997 2000 2003 2006

Why Tourism Matters
To Oregon
2010
• $8.1 billion in direct travel spending (+5.2%)
• $2.0 billion in travel generated earnings (0%)
• $313 million in state and local taxes (+3.3%)
• GDP of the travel industry = $3.1 billion
• Tourism = still one of Oregon’s top export-
oriented industries

Oregon Travel Impacts 1991-2010, Dean Runyan Associates

Earnings of Export-Oriented
Industries


Urban vs. Rural Impact


Investing in Oregon’s
Tourism Industry

• Pre-2004, Oregon’s tourism budget was:
– 46th lowest of the 50 states
– Oregon was losing market share to other
states

• Oregon tourism industry needed an
economic stimulus!!!

Oregon Tourism Investment
Proposal (2004)
• 1% Statewide Lodging Tax implemented in 2004
– a.k.a. transient occupancy tax (TOT), bed tax, or room
tax
– applies to hotels, motels, B&Bs and other overnight
lodging facilities
• New stipulations for local lodging taxes:
– required to maintain (or increase) the amount spent
on tourism from existing local lodging taxes
– governments must direct at least 70% of the new or
expanded tax revenue to support tourism

1% Statewide Lodging Tax

• Deposited with Travel Oregon
$11.5 million collected in 2008
$9.9 million collected in 2009
• Oregon’s tourism budget now ranks in the
middle of the 50 states (25-28th)
• Up to 15% is redistributed to Oregon’s 7
tourism regions

So what is
Travel Oregon?

The Oregon Tourism Commission dba
Travel Oregon is the official state agency
charged with encouraging economic
growth to enhance the quality of life in
Oregon through a strengthened economic
impact of tourism throughout the state.

Travel Oregon’s Key Objectives

#1 Maximize the return on public and private
investments in tourism.
#2 Inspire year-round travel and lengthen the average
visitor’s stay.
#3 Encourage leisure travelers to Oregon from our
primary international target markets
#4 Develop new and strengthen existing tourism
products by providing leadership and fostering
collaboration amongst local, regional, national,
tribal and private-industry tourism entities.
Strategic plan is located on the Travel Oregon Industry website, www.traveloregon.com/industry

How do we do this?

#1 Set strategic direction for the industry
#2 Inspire domestic (U.S.) travelers to visit Oregon
#3 Inspire international travelers to visit Oregon
#4 Develop our tourism “products” – the Oregon
experience – in partnership with community and
business leaders as well as local, state and federal
public agencies

Oregon’s Brand Values

VISIONARY
STEWARDSHIP
GENUINE

Telling the Oregon story

$7 million marketing
$1 in media
=
$201 in visitor spending

An example of how we tell our
story

2010 Oregon Bounty
video

Tourism Development Programs

• Product Development in Target Niche Markets
• Community-Based Sustainable Tourism Planning
• Support for Sustainable Business Development
• Matching Grants Program
• Governor’s Conference on Tourism
• Industry Communication
• Industry Policy & Research
• Tourism & Hospitality Consortium
• Oregon Welcome Centers
• Oregon Q Care Customer Service
Training Program

Organizational Structure

Governor

Oregon Tourism Commission
9 appointed Commissioners

Travel Oregon
Chief Executive Officer

Travel Oregon Staff
5 departments

Travel Oregon departments

• Executive
• Operations
• Tourism Development
• Consumer Marketing
• International & Domestic Travel Trade

Tiered system for partnering &
communication

Destination Marketing
Organizations (DMO)
(~120)

Regional Destination
Marketing
Organizations (RDMO)
(7)

Travel Oregon (1)

Tourism industry partnering

Local Tourism & Hospitality Industry
(business or organization)
Example: Caddisfly Resort, LLC

Local Destination Marketing Organizations (DMO)
Example: Travel Lane County

Regional Destination Marketing Organization (RDMO)
Example: Willamette Valley Visitors Association

Travel Oregon

Communication system

Travel Oregon

Regional Destination Marketing Organization (RDMO)
Example: Willamette Valley Visitors Association

Local Destination Marketing Organization (DMO)
Example: Travel Lane County

Local Tourism & Hospitality Industry
(business or organization)
Example: Applegate Regional Theater, Inc

1% Statewide Tax Revenue also
Supports Seven Regions

Up to 15% of the 1% statewide tax can go
back to the regions for marketing purposes
to complement existing local and regional
lodging tax revenues.
1.78 million redistributed in 2008
1.41 million redistributed in 2009

1% Statewide Tax Revenue also
Supports Seven Regions
In 2009, Oregon’s 7 tourism regions received the following
amounts for Regional Cooperating Marketing Programs:

Greater Portland $496,526 35.3%
Oregon Coast $347,782 24.7%
Willamette Valley $178,201 12.7%
Southern Oregon $142,608 10.1%
Central Oregon $122,957 8.7%
Eastern Oregon $66,372 4.7%
Mt. Hood/Gorge $53,967 3.8%
Total $1,408,413 100%

Current Trends in Tourism

• Consumers trading down/not out
– Intent to Travel Improving
• Shorter planning cycles
– more rubber tire trips
• Seeking travel value due to the macro economic
situation
• Consumers see the marketplace as affordable
• Packaged opportunities more relevant

Source: US Travel, TravelHorizons, 2009

Key Travel Drivers for
Willamette Valley

• Good for families and adult vacations
• Natural beauty
• Outdoor recreation opportunities

Key Markets for
Willamette Valley
• Oregon, Washington, & California
• Specifically:
– Portland, OR
– Eugene, OR
– Seattle-Tacoma, WA
– Bend, OR
– Los Angeles, CA
– San Francisco-Oakland-San Jose, CA
– Spokane, WA
– Medford/Klamath Falls, OR

Oregon 2009 Visitor Report, Longwoods International
Available at: www.TravelOregon.com/Industry`

Oregon 2009 Regional Visitor Research, Willamette Valley,
Longwoods International

Survey – Travel Activities
If y o u d id tra v e l to o r within Ore g o n d uring the Ore g o n A d v e nture c a tio n p ro mo tio n,
whic h a c tiv itie s d id y o u p a rtic ip a te in (in Ore g o n)? Che c k a ll tha t a p p ly .

80.0%
66.7%
70.0%
60.0%
47.7% 46.8%
50.0%
40.0% 31.0%
30.0% 25.6%
21.2% 20.4%
20.0% 13.3%
7.4%
10.0%
0.0% Visited a winery

Mountain biked
Visited a local

Stayed overnight

Outdoor rec event

Played golf

adventure sports

Road biked
Hiked/backpacked

Participated in
restaurant

(hotel/b&b)

activities
• Outdoor interest translated into travel activities
– Hiking also was a key activity

Survey – Travel Motivators
W ha t ty p e o f a c tiv ity wo uld mo tiv a te y o u to tra v e l to Ore g o n d uring the s p ring / s umme r?
Che c k a ll tha t a p p ly .

70.0% 64.9% 64.2%
60.0%
48.3%
50.0%
44.4%
40.2%
40.0%
26.8%
30.0%
23.7% 23.7% 22.4%
18.5%
20.0% 13.5%
10.3% 9.4%
10.0%

0.0%
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• Hiking and Deals are primary travel motivators to
this audience

MRV Industry Overview

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