Tag Archives: arizona office of tourism

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Kiehl's Since 1851 Arrives in Scottsdale

The Store

Kiehl’s Since 1851, the venerable New York-based purveyor of fine quality skin and hair care preparations, opened its very first retail store in at Scottsdale Fashion Square. Kiehl’s is proud to offer visitors and the Scottsdale community the opportunity to discover the brand’s efficacious skin, hair and body care products, personalized customer service and 162-year-old heritage.

BB Cream_SPF 50“Scottsdale has long been on our wish list for a new store, and our new space at Scottsdale Fashion Square is the ideal location to fully introduce Kiehl’s to Arizona,” said Chris Salgardo, President, Kiehl’s USA. “Our new store allows us to bring Kiehl’s further into the Southwest and share our New York heritage with a whole new community. Each element of our new store, from the design of the fixtures explaining our skin, hair and body formulations, to the historical photographs, mementos and Kiehl’s icons, helps tell the extensive story of our unique company that began as an old-world apothecary at the corner of 13th Street and Third Avenue in New York’s East Village. From design, to customer service, to the high-performing natural ingredients that are the basis of our products, we did everything possible to bring a modern version of our original store to Scottsdale, and I look forward to introducing our new community to our skin care, our customer service and our story.”

Kiehl’s at Scottsdale Fashion Square mirrors the unique ambiance found in the company’s original New York Flagship, which began as a neighborhood apothecary in 1851. The new store brings a modern New York apothecary to Scottsdale, referencing the company’s original East Village roots and blending vintage and antique apothecary fixtures with a modern neon flare. The interior design advances Kiehl’s longtime commitment to the environment with the use of natural, sustainable materials and energy-efficient light fixtures, while enhancing the overall service experience for Kiehl’s patrons.

Kiehl’s at Scottsdale Fashion Square also utilizes natural, sustainable materials and energy efficient light fixtures – and encourages patrons to recycle Kiehl’s packaging with a specially designed recycling bin, promoted through Kiehl’s Recycle and Be Rewarded! program. The program offers customers the opportunity to return empty Kiehl’s jars, bottles and tubes to the store for recycling, in exchange for complimentary products.
Kiehl’s commitment to education through attentive service is accentuated through a dedicated personal consultation area. The enhanced space provides an opportunity for customer representatives and patrons to converse privately about products best suited for the customer’s individual needs. A separate men’s destination offers specialized educationActivatedSun_LotionSpray_SPF50 tailored to the specific concerns of male patrons.  All customers receive the kind of attentive service for which Kiehl’s is known around the world today. In addition, simple, no-frills packaging allows Kiehl’s to formulate its products with high quantities of the most efficacious natural ingredients available.

Generous sampling through Kiehl’s “try before you buy” program offers the complete Kiehl’s line of skin and hair care for men, women, children and babies with a generous offering of its traditional product samples. To assure its customers always find exactly what they need, Kiehl’s offers a 100% money back guarantee on all purchases, and guarantees that customers will see revitalized skin in 28 days or their money back.
Custom gifting 365 days a year allows customers to create personalized gifts year-round. A Kiehl’s Customer Representative will help the customer assemble a personalized, custom gift box, choosing items based on recipient, theme, ingredient or price, from any and all products in the store.

Design

  • A 6-ft table provides patrons a comfortable station for complimentary Healthy Skin Consultations by Kiehl’s Customer Representatives, which helps them determine the formulas best suited for their personal needs.
  • A  space for specialized shaving and grooming education and demonstrations is designed for men. Specially designed accents such as military-style lockers, black subway tile, and props to demonstrate the perfect shave, bring this relaxing stop to life for Kiehl’s male patrons.
  • Black Nero Marquina marble highlights the shop’s exterior façade, honoring the marble exterior of the original Kiehl’s New York Flagship.
  • Carrera marble tables, counters and trim provide a utilitarian, functional approach.
  • Natural, sustainable materials, such as tabletops made from paperstone, a waterproof material made from 100 % post-consumer recycled paper.
  • Energy-efficient LED lighting illuminates Kiehl’s products in an environmentally friendly way.
  • Reclaimed wood floors and exposed brick walls evoke the old-world quality of Kiehl’s East Village neighborhood.
  • A bronze and crystal chandelier is inspired by the crystal chandeliers that have adorned Kiehl’s Flagship store in NYC for years.
  • A custom-painted motorcycle, an icon of Kiehl’s heritage, will be on permanent display, evocative of the passions and adventurous spirit of Kiehl’s founding family.
  • Antique apothecary glassware and vintage props  reference the company’s early years as a neighborhood apothecary.
  • Vintage photographs and mementos – take customers on an exciting journey through Kiehl’s 162-year history.
  • Pop-art inspired graphics – the late Andy Warhol was a long-time Kiehl’s fan, purchasing Blue Astringent Herbal Lotion in bulk from the Flagship, and special graphics were created in his honor.

About Kiehl’s Since 1851: Kiehl’s was founded as an old-world apothecary in New York’s East Village neighborhood. After years as an ambitious apprentice, John Kiehl purchased the business and began operating under the Kiehl name, serving the burgeoning New York community with unique herbal remedies. In 1921, John Kiehl’s apprentice, Mr. Irving “Doc” Morse, purchased the business and expanded it to a full-service pharmacy, stocking medicines, tinctures, and the first Kiehl’s-branded products. Doc Morse, a pharmacist and herbologist, passed the business on to his son, Aaron, himself a chemist and avid motorcyclist and aviator. Aaron’s daughter, Jami, was raised at Kiehl’s amongst the “family” of employees, who together fostered a tradition of attentive, personalized service for every patron. Over the generations, the Morse family committed Kiehl’s to serving the community uniquely efficacious skin and hair formulations made with the finest natural ingredients in the apothecary tradition.

Store hours are 10 a.m. to 9 p.m. Monday through Saturday and 11 a.m. to 6 p.m. Sunday.  For more information about Kiehl’s, please visit www.kiehls.com.

Arizona Stronghold Vineyards' wines

Arizona Stronghold Vineyards Hosts 4th Quarter Wine Club Release At Firesky

This Saturday, December 15, Arizona Stronghold Vineyards is hosting a celebration complete with wine and light fair ― the 2012 4th Quarter Wine Club Release. During this special event held at Firesky Resort & Spa, guests will enjoy the tasting of two Arizona Stronghold Vineyard Site Archive wines as well as food from Taggia – Coastal Italian Cuisine & Cocktails, located in Old Town Scottsdale.

At the event, Arizona Stronghold Vineyards will be pouring its 2011 Nachise, 2011 Site Archive Riesling and 2011 Site Archive Bonita Springs Cabernet Pick 3. The two site archives will be available by the bottle at Taggia for a limited time.

Those at Arizona Stronghold Vineyards have planned the event in hopes to bring together Valley residents and Arizona Stronghold Vineyards Wine Club members to socialize and celebrate Arizona-made wine, which has had quite the impact on the state, pumping millions into the economy and drawing visitors from both in and out of state.

According to the Arizona Wine Tourism Industry Survey, produced for the Arizona Office of Tourism and conducted by Northern Arizona University’s Arizona Hospitality Research & Resource Center:

  • Arizona wine visitors had an estimated $22.7 million in direct expenditures, which resulted in an indirect economic impact of $4.3 million, and induced impacts of $10.5 million for a total industry economic impact of $37.6 million. Indirect business taxes based on direct expenditures produced an additional $5.9 million and the total economic impact supported 265 direct jobs and 140 indirect and induced jobs, for a total of 405 jobs.
  • Day visitors had an average of $149 in direct spending, with restaurant and grocery expenditures ($44) accounting for the largest portion.
  • Overnight visitors had average expenditures of $370, with lodging or camping ($140) comprising the single largest item.
  • In terms of county origins, Maricopa County contributes more than half (55%) of all wine visitors followed by Pima County (33%).
  • Almost one‐third (29.0%) of the sample have never visited an Arizona winery before, while 6.8 percent have visited 11 or more Arizona wineries in the past 12 months (average 4 visits/year).
  • More than four‐fifths (82.7%) of all respondents said that their experience at the winery or tasting room was either “a little better than I expected,” or “much better than I expected.” A glowing endorsement of the customer service and value of the experience.

Admission into Arizona Stronghold Vineyards’ event is free for Wine Club members and $10 for non-members. For more information about Arizona Stronghold Vineyards, visit azstronghold.com, call (928) 639-2789 ext. 206, or email wineclub@azstronghold.com.

Arizona Stronghold Vineyards 2012 4th Quarter Wine Club Release

When: Saturday, December 15, 12 p.m. to 4 p.m.
Where: FireSky Resort & Spa
4925 N. Scottsdale Rd., Scottsdale
Tickets: Free (Arizona Stronghold Vineyards Wine Club members), $10 (non-members)
(Purchase tickets here.)

104867437

Off Madison Ave, SpinSix merge

Off Madison Ave, a Phoenix-based integrated marketing communications firm, and SpinSix, one of Arizona’s leading creative marketing firms announced they have merged. Total capitalized billings of the company will be in excess of $50 million annually, supported by more than 50 staff members, making Off Madison Ave + SpinSix a drivingforce of integrated marketing in the West.

Off Madison Ave and SpinSix have worked collaboratively in the past, delivering innovative solutions for shared clients. With similar cultures and visions, each Arizona advertising agency was looking to expand offerings and was focused on aggressive growth – making this an ideal merger.

Notable details of the Off Madison Ave + SpinSix merger include:

· Agency offerings fall into complementary areas of marketing, giving the combined company and its clients a full spectrum of services andin-depth expertise.

· Given different marketing focus areas of Off Madison Ave and SpinSix, all staff will be retained.

· There are no account conflicts, allowing the service of existing clients including Arizona Office of Tourism, CVS Caremark, FileMaker, LifeLock, Nike, Spenco Medical and more.

·    The new company name will be Off Madison Ave + SpinSix. Over time, the company plans to evaluate the benefits of a combined name.

For all of its 14 years in business, Off Madison Ave has been profitable and has seen double-digit revenue growth during many years. SpinSix puts up equally impressive numbers, with 17 profitable years – every year of its operation. Both companies have evolved and have innovated to remain at the forefront of digital marketing’s best practices, paying particular attention to developing proprietary tools and technologies to plan, monitor and measure client outcomes.

Scottsdale-based CKS Advisors, LLC served as the exclusive financial advisor to Off Madison Ave and SpinSix in the transaction. The closing of the transaction builds on CKS’s reputation of working with leading advertising and digital marketing firms.

Schnefp Farms

Schnepf Farms: Gardens, Tours, Events And More

Schnepf Farms is more than just a farm. With a Country Store & Bakery, U-Pick Gardens, special dinner events, guided tours and campsites, the possibilities for family fun are seemingly endless. And the history that makes up Schnepf Farms is equally as intriguing, as the combination of old and new buildings coupled with the family’s passion for farming creates a truly magical experience.

Don’t believe us? Well, how about this: The farm welcomes nearly a quarter million people per year. (Now that’s pretty impressive.)

Schnepf Farms has made some steady transitions from commercial farming to entertainment farming, while continuing to keep farming as the firm foundation of its mission. Planning around the existing orchards, they were able to incorporate rides, buildings and any other necessary additions to the property. The farm also educates thousands of school children on the importance of agriculture; it hosts weddings, and its fresh fruits and vegetables are always up for grabs.

The farm was originally the home and property of Ray and Thora Schnef, who cultivated cotton, wheat and vegetables. Later, in the ’60s, Ray began to grow potatoes for chips; and in the ’70s, they opened a vegetable stand that is now the Country Store & Bakery. Today, Mark and Carrie Schnepf with their four children are the sole operators of the farm. And in October 2006, Governor Janet Napolitano and the Arizona Office of Tourism designated Schnepf Farms as an Arizona treasure.

For a more hands-on activity, head into the farm’s organic, U-Pick Gardens. Here, you can roam its pesticide-free garden and gather vegetables for just $1.50 per pound. Grab a basket, and start pickin’!

Or, if you’re itching to learn about the farm’s history, Schnepf Farms offers tours Tuesday through Friday. These tours includes a guided hayride around the farm to view the organic gardens and orchards while learning the history of this 70-year-old family farm. Bus and group tours are also available, and you can bring your employees to the farm for a camping party or event!

Other events include Lil Farm Birthday parties held November through July. For $250, invite 40 of your closest friends and gather in a private area that comes complete with tables, unlimited train and carousel rides, and a private hayride to the petting barn. (Don’t worry; you can extend your invitation list at $10 per person.)

Dinners Down, the orchard’s fine dining event, consists of freshly picked food from the garden. This is a reservation-only event at $85 per person with all-inclusive tax and gratuity.

Educational opportunities are also available at Schnepf Farms, such as Veggie Picking and Fall Pumpkin Picking Visit. But, be sure to stop by the Farmhouse Museum. Considered to be the perfect wedding or private event spot surrounded by the peach orchards, country landscape and brick walkways, the museum also includes a room (with a fireplace) for an indoor reception as well as upscale bridal suites. This will makes any occasion cozy, charming and unforgettable.

For the outdoorsy folk, campsites are available, too — open year round with self check-in, free Wi-Fi, restroom and shower on-site, as well as bonfires within a fire ring. Bring your pets, too, as long as they’re on a leash. Here, you can plan your perfect camping event in comfort while still being connected to the great outdoors.

For more information about Schnepf Farms, please visit schnepffarms.com.

Schnepf Farms
24810 S. Rittenhouse Rd.
Queen Creek, AZ 85242
(480) 987-3100
schnepffaarms.com

Tourism Industry - AZ Business Magazine January/February 2012

Arizona Tourism Industry Has A Billion-Dollar Impact On Economy

Economic engine: Arizona tourism industry packs an economic punch of $17.7 billion yearly

Tourism is one of the largest industries in Arizona, but it isn’t just about hotels and golf courses.

Its direct economic impact of $17.7 billion has helped keep the state afloat during some of its darkest economic days, and the ripple effect is even greater. Those dollars spill over to a host of businesses, from the farmers who supply produce to the hotel restaurants to the car dealers who sell vehicles to the banquet servers. They also help keep our police officers and firefighters on the streets, thanks to tax revenues.

“That trickle-down money does affect everyone who is a citizen of Arizona, to some degree,” said Sherry Henry, director of the Arizona Office of Tourism.

And the money keeps coming, thanks to nearly 37 million overnight visitors annually.

“It’s so important to recognize the tourism industry is always here,” Henry said. “Even in recessionary times, people are still traveling.”

Tourism spending was up 7.9 percent in Arizona from 2009 to 2010 and has increased 25 percent since 2000. Overall, it’s still down 7 percent from its heyday of 2007, but most other indicators are moving in the right direction: Tax revenues, occupancy rates and demand are all up from 2009.

“It’s not that we don’t feel the effects of the recession,” Henry said, “but we’re still in the game.”

While the state has lost 11 percent of its tourism jobs since its high of about 173,400 in 2007, the industry still brings in $48 million a day. Tourism is the number one export industry in Arizona.

One way that benefits every resident directly is when the tax bills come. Taxes from tourism generate $1.3 billion in local and state revenue, which pays for everything from public safety to parks to libraries.

“When you look at the taxes generated, (tourism) saves every Arizona resident $1,000,” Henry said. Her agency, which was created in 1975, is responsible for marketing the state as a whole with multiple programs: advertising, public relations, community outreach, trade and media, and digital and social media, to all domestic and international visitors.
“(Travelers) have a lot of choices, so it’s important your destination stays in top of mind,” Henry said.

Part of the money for tourism outreach comes from tribal gaming. In the fiscal year ending June 30, 2011, tribal gaming revenues contributed $5.5 million to the state’s Tourism Fund. That comes from the $79 million total they deposited to the state, with another 12 percent of their annual revenue of almost $1.7 billion going to cities, towns and counties.

In addition, said Melody Hudson, public relations manager for Gila River Gaming Enterprises, “We have a deep and wide reach as far as our philanthropic activities, too.”

Tourism weaves through the fabric of our economy in ways that aren’t always obvious. Jesse Thompson, director of sales and marketing for the Hotel Valley Ho in Scottsdale, gave a list of local businesses that the hotel supports. Zuzu, its on-site restaurant, gets a good deal of its ingredients from local purveyors such as Red Bird Farms, McClendon Farms, Duncan Farms, Crave Artisan Ice Cream and Hickman Family Farms. Audio-visual contractors, limo and taxi drivers, independent conference planners, beverage distributors, decorators, and even the company that launders their linens – sheets, towels, tablecloths, spa robes – would all be affected if business dropped.

However, Thompson is proud that revenues at the 230-room Hotel Valley Ho increased 21 percent in 2011 over 2010, and he expects an 8 percent bump from 2011 to 2012. None of the 240 to 250 employees has been laid off in six years, despite the downturn. He attributes the increase in going after more group bookings.

Another way tourism boosts Arizona’s entire economy is by making the state not only an appealing place to visit, but to live. People might come to see auto shows, sporting events or festivals and decide to make a permanent move.

“People who visit Arizona often fall in love with Arizona and plot ways they can come to work here or bring their businesses,” said Glenn Hamer, president and CEO of the Arizona Chamber of Commerce and Industry. “It’s a gateway opportunity to sell the state of Arizona.”

Because the business community recognizes the importance of both visitors and tourists who become permanent residents, they work to bring major events such as the Super Bowl to the state. Hamer calls it a “showcase for our state.” In addition, the Super Bowl generated $500 million in economic impact in 2008. He expects the number to be at least that much when the Super Bowl returns to the University of Phoenix Stadium in Glendale in 2015.

The business community also supports sports tourism in general, including spring training baseball, college football bowl games, the baseball All-Star game in July 2011, the NBA All-Star game in 2009, and amateur events such as marathons, triathlons, bicycle tours and student sports meets. And it pushed for the 2008 expansion of the Phoenix Convention Center, now one of the top 20 such venues in the nation.

“Our convention business is an important part of our tourism economic engine,” Hamer said.

Unlike other industries such as manufacturing and technology, Hamer said, much of the tourism industry can’t be automated or outsourced. And thanks to the state’s natural and man-made attractions, it appears to be an industry that’s sustainable.

“Arizona as a whole relied so much on construction,” said Heather Ainardi, director of the Flagstaff Convention and Visitors Bureau, “and in the next 10 years, tourism is going to be one of the drivers of Arizona’s economy.”

Arizona tourism industry: Economic impact of major winter Valley events

College football bowl games
(Fiesta Bowl, BCS national title game and Insight Bowl)

Economic impact: $354.6 million in 2010-11
2010-11 attendance: nearly 200,000 at all three games

P.F. Chang’s Rock ‘n’ Roll Marathon

Economic impact: $59 million
2011 attendance: about 30,000 runners

Scottsdale Arabian Horse Show

Economic impact: $52-58 million
2011 attendance: about 250,000

Cactus League baseball

Economic impact: $360 million
2011 attendance: More than 1.47 million

Waste Management Phoenix Open

Economic impact: $180 million (estimated from 2008, when attendance was 538,356)
2011 attendance: 365,062 (event impacted due to weather)

Arizona Business Magazine January/February 2012

 

Enchantment Resort in Sedona - AZ Business Magazine Jan/Feb 2011

Studies Show That Every Dollar Invested In Tourism Returns At Least Double That Amount

Forests of Saguaro cacti lit by fiery red and orange sunsets, gun-toting cowboys staging shoot-outs, and the Grand Canyon’s striated walls looming over the Colorado River.

One would think these distinctly Arizona images could sell themselves. Unfortunately, Arizona’s tourism industry is learning the hard way that it takes more than just the state’s natural beauty and attractions to bring in visitors — it takes dollars.

“That’s why we need to be out there marketing Arizona, reminding people about what a great, wonderful, warm, welcoming destination we are,” says Debbie Johnson, executive director of the Arizona Tourism Alliance and president and CEO of the Arizona Hotel & Lodging Association.

The recession caused Arizona’s once vibrant tourism industry to flounder, and in 2009, the stigma related to the corporate meetings industry continued the industry’s downward spiral.

“We weren’t just feeling the pain like everybody else. We were getting hit much more significantly than the nation overall,” says Mitch Nichols, president of Nichols Tourism Group, which provides research services to the tourism industry.

Visitor spending in Arizona decreased 10.6 percent, while the nation saw a decrease of just 4.4 percent, from 2007 to 2009. Additionally, Arizona lost $780 million in potential visitor spending because its share of national travel expenditures dropped from 2005 to 2008, according to Nichols Tourism Group.

In early 2010, the state Legislature dealt the industry a one-two punch when it passed SB 1070 and redirected funds from the Arizona Office of Tourism’s (AOT) budget to the general fund.

The Legislature redirected the tourism formula fund, which is composed of 3.5 percent of the state’s bed tax, 3 percent of the state’s amusement tax, and 2 percent of the state’s restaurant tax. This redirection will take approximately $28 million away from AOT over the 2011 and 2012 fiscal years.

In November 2010, the Center for American Progress, a progressive think tank, announced more bad news for Arizona’s tourism industry. In a study, it was reported that the controversial SB 1070 bill had cost the state $141.4 million in lost spending.

However, the industry isn’t down for the count.

Led by the Arizona Tourism Alliance, the tourism industry is campaigning to reclaim the budget, which it believes will help pull Arizona out of the recession and return millions of visitors to Arizona.




Arizona Inn in Tucson

Photo: Arizona Inn




While the long-term effects of SB 1070 on the tourism industry are hard to quantify, the budget redirection is projected to cost Arizona big.

Even the most conservative estimate puts the state’s losses at $26.7 million, but “actual revenue losses could potentially be many times this amount,” according to an independent study by Elliot D. Pollack & Co.

Nichols Tourism Group estimates the state could lose as much as $1.6 billion.

“You’re not finding $14 million. You’re creating a much bigger hole that will have to be funded in the future,” Nichols says.

The redirection of money decimated AOT’s marketing budget, allowing other states to sneak in and steal Arizona’s market share. These states recently discovered the tourism industry’s power to pull a state out of the recession.

“Some of our key competitors, California in particular, got much more aggressive in terms of the resources they were spending to try and convince visitors to choose California,” Nichols says.

Arizona is becoming out of sight, out of mind, and statistics prove it, Johnson adds.

From January to August 2010, the daily rate for Arizona hotel rooms declined 4.4 percent, while the nation’s daily rate only declined by 1 percent, and California’s daily rate declined by 1.1 percent, according to Nichols Tourism Group.

“Too often there’s a mindset that people will come whether or not you advertise. And we’ve got to increasingly ensure that kind of mindset does not carry the day,” Nichols says.

To remedy the industry’s declining revenue, Arizona’s Legislature needs to be reminded of what tourism means to the state. Tourism brings in revenue that funds education and many of the public services that are necessary during recessionary times.

The return on investment for every dollar spent on tourism marketing is seven to one, out-of-state studies show, according to the Pollack study.

In addition to pulling in revenue, the tourism industry directly and indirectly employs around 300,000 Arizonans, about 10 percent of the state’s work force.

Two key pieces of Arizona’s future, the economy and the work force, depend upon tourism. If the budget is restored, and soon, Arizona can rebound to pre-recession numbers within five years, Johnson says.

“Our destination has shown … that we can come back from adversity,” Johnson says. “We saw that after 9/11. (We were) one of the top five destinations, in terms of rebounding. I think we’re going to see that again because of what we have to offer, because we do have such a strong industry here. We’re a united industry. We work together and we come together in times like this. I think you’re going to see Arizona rebound.”

AZ Business Magazine Jan/Feb 2011

Monument Valley in Arizona, part of the Arizona Office of Tourism's new marketing campaign - AZ Business Magazine Jan/Feb 2011

Arizona Launches Innovative Media Campaign To Bring Back Tourists

Arizona has gotten a bad rap as of late, with the added national backlash from the passage of SB 1070 making it even tougher for the state to climb out of the recession. But the Arizona Office of Tourism is fighting back, and it has only one word for you — monumental.

It’s part of the Arizona Office of Tourism’s “In One Word — Arizona” marketing campaign that launched Nov. 8. The campaign couples iconic images of Arizona with one word describing the image. Bet you can guess which image is paired with “grand.”

The campaign’s eight images, ranging from the Grand Canyon and Monument Valley to Sedona and Flagstaff’s distinctive terrains, will run from November 2010 to May 2011 primarily in Chicago and Los Angeles, the two major markets for Arizona tourism.

This campaign features traditional print, TV and radio ads, but also includes innovative strategies, such as video-on-demand, “wallscapes” on buildings in Chicago and Los Angeles, and versions of the ads appearing on the print-out boarding passes of eight major airlines.

The advertising is “layered to continue to drive home the wonders and the diversity of Arizona,” says Sherry Henry, director of the Arizona Office of Tourism.

Spreading the message of Arizona’s allure is not limited to the Hollywood Hills and Chicago’s Magnificent Mile. An extensive digital media campaign also will run in San Francisco, Denver, New York City and other major markets, as well as Mexico and Canada.

But the biggest accomplishment of AOT’s new campaign is the fact that despite intense budget cuts that practically erased the marketing budget, the campaign is forging ahead, focused on bringing in much-needed tourism to the state.

The state Legislature removed revenue from the tourism formula from AOT’s budget and placed it in the general fund. Because of this shift, the AOT will receive approximately $14 million less in the 2011 fiscal year than it received in the 2010 fiscal year.

“We have this budget, and we are going to make this budget stand like it is 10 times what we have,” Henry says, adding that AOT’s mission is “to use the dollars we do have to drive as much revenue as we can.”

The budget stress isn’t the only issue facing Arizona’s tourism industry. The recession, which caused the budget decrease, is the No. 1 issue, Henry says. The swine flu epidemic of 2009 hurt, as well as the “AIG effect,” in which big businesses cut down on holding corporate meetings at resorts. Then, boycotts from the passage of SB 1070 gave a further beating to an already crippled industry.

However, Henry says Arizona’s tourism is going to surge back because of the state’s well-established image and the strong partnerships within the tourism industry.

“The branding of Arizona hasn’t changed,” Henry says. “There are some misconceptions of what’s happening here, but it hasn’t really affected the Arizona we all know and love.”

AOT has partnered with local convention and visitor bureaus and the Arizona Tourism Alliance to reach the group-and-meeting tourism market. The relationships between all sectors of Arizona’s tourism industry are “stronger than any other state we know of,” Henry says.

Although 2009 saw a 10.2 percent decrease in travel expenditures and a 2.1 million decrease in overnight visitors, 35.3 million visitors still made Arizona their destination of choice.

Statistics show that in 2010, top-of-the-line leisure traveler numbers are up, Henry says. AOT identifies leisure travelers as Arizona’s target visitor.

“We’re finally beginning to see it creep up again,” Henry says of visitor numbers.




Arizona Office of Tourism's new campaign

Images courtesy of the Arizona Office of Tourism




AZ Business Magazine Jan/Feb 2011

Steve Chucri, president and CEO Arizona Restaurant Association - AZ Business Magazine Jan/Feb 2011

Q&A Steve Chucri, President and CEO Arizona Restaurant Association

-In 2002, Steve Chucri was lobbying at the state level when the Arizona Restaurant Association president and CEO position was presented to him. Chucri now uses his political and lobbyist backgrounds to help Arizona’s restaurant industry navigate today’s tough issues. An executive committee board member with the Arizona Tourism Alliance, Chucri discusses strategies to create workable solutions to many issues affecting his industry.

Could the recession have been worse for the restaurant industry?
I always think it can be worse, because you don’t know worse unless you’re in it. That being said, yes, the economic hit, the recessionary hit to our industry was substantial. It may not be as substantial as to other elements of the tourism industry, but when you have the closing of restaurants double from normal times during this recessionary time, that’s pretty substantial. … I’m not going to say we were the worst or we were the most impacted, but there has been a huge impact from the most experienced restaurateur to the novices of the industry. Both were equally hit.

How have the arizona restaurant Association and the arizona tourism alliance been working together to get through the recession?
Restaurants over the recent years have become more and more dependent on tourist dollars. The receipts show that. About 25 percent of our receipts from restaurants are coming from tourists. … I think what we’ve been able to work on with both organizations is how do we continue to work together and make Arizona a destination? We’re becoming more and more known for our culinary fare.

Second to that, we’ve also worked legislatively together to ensure we’re not being targeted for miscellaneous taxes and we’re not getting targeted as an industry when it comes to funding issues, especially the Arizona Office of Tourism.

What challenges do you see facing the restaurant industry in 2011?
I see an increase in costs. We’ve been fortunate to maintain costs at a low level because of the recession, but I’m getting concerned that if things do start to pick up we will see costs starting to rise. I feel as though the smallest of things, the profitability of a restaurant, is very, very low and it doesn’t take much. You can’t just go to your menu and start raising prices in an economy like this. … I think we’re going to make a real push to see how we can get rid of that CPI (consumer price index) component with the minimum wage, but I don’t want to dwell too much on that, as we’re still in the strategic phases.

On the good side too, I believe that people are going to realize, yes we’re in a recessionary time but restaurants essentially are on sale right now. … I see people also realizing, like I said on the positive side, that it isn’t all that expensive to go out to eat.

How has Arizona’s restaurant industry been recovering from the recession?
In many, many ways, across many segments of our industry, it’s been at a snail’s pace. … I will tell you that 2010, from the quick-serve industry all the way to fine dining, it has been better than 2009. Now, that’s not universal, but the increases we are seeing are at a snail’s pace.

I think the wish, if there was one, of the industry would be that growth would pick up a little more quickly. Not at the crazy pace we were going at back in 2006, 2005, but something that is more meaningful and can be measured. … I think that restaurants are doing all they can to make sure that happens by offering these terrific deals and really using a lot of ingenuity and happy hours.

Restaurants are really good at incentivizing and getting people to come in. I think we’ll always continue to see that happen. … If restaurants can grow and if our industry can grow back up to the 4 percent or 5 percent and it’s sustainable each month and it’s sustainable on a consistent basis, you’d see a lot of smiles on restaurateurs’ faces.

Arizona Business Magazine Jan/Feb 2011

ATA Is Promoting The Message That Tourism Will Bolster The State’s Economic Recovery

Tourism is not an expense — it’s an investment.

That’s not an official slogan for advocates of Arizona’s tourism and hospitality industry, but it is a message they are working hard to imprint in the public consciousness as legislators eye further cuts to the state’s budget. As in past budget crises, funding for marketing the state’s tourism and hospitality industry is vulnerable once again.

“Too often, public officials wrap up tourism with the other cost sectors rather than looking at it as an economic engine that can help bring new spending, support new jobs, support incremental tax revenues,” says Mitch Nichols, president of the Nichols Tourism Group and treasurer of the Arizona Tourism Alliance.

Nichols says the ATA is developing an advocacy program to better explain the role tourism can play in the state’s economic recovery.

“Tourism helps Arizona’s economy on two levels. One is its role as a base industry where it can bring new spending which will support new jobs and new taxes. So it’s role as a base industry is really critical,” he says. “The other element with tourism is its role across the state. A couple of years ago when the state did an economic development plan and looked at the various clusters, they looked at tourism as the common denominator. It was the only base industry that has applications in all 15 Arizona counties.”

According to a report prepared last year by the Portland, Ore.-based economic and marketing research firm Dean Runyan Associates for the Arizona Office of Tourism, the total direct and secondary impact of the Arizona travel industry in 2008 was 310,000 jobs and $10.2 billion in earnings.

The report also found that in 2008, direct travel spending was associated with $1.4 billion in state and local tax revenues and $1.2 billion in federal tax revenues. That was the equivalent of $1,080 per household in Arizona.

In other findings:
Total direct travel spending in Arizona in 2008 was $18.5 billion, a 3.2 percent decrease over 2007.
Travel-related employment, earnings and tax receipts declined in 2008.
The collapse of the housing market and recessions in Southern California and Arizona contributed to the travel decline.

Nichols warns that while it may seem easy to cut state funding for tourism marketing, the result could be long-term damage to the industry and the derailing of a fragile economic recovery. The effects could be even more troubling as competitor states such as California hold firm despite their own economic difficulties.

“There are other states that do see the full potential of tourism,” Nichols says. “California doubled its tourism budget up to $50 million a few years ago. The state is maintaining that budget despite cuts.”

Quite a lot is at stake, according to Nichols. Citing the Dean Runyan study, Nichols says U.S. leisure and business travel spending is expected to increase 4.5 percent and 5 percent in 2010 respectively. That has the potential to create 90,000 new jobs nationwide.

Nichols says Arizona needs to step up — not back — if it wants to bring a portion of those jobs and tax revenues to the state. In order for Arizona to compete against California and Nevada, the state needs to aggressively market at both a state and regional level.

Nichols points to Flagstaff as an example of how substantial the ROI on marketing tourism can be for a community. Last spring, as the economy continued in freefall, the Flagstaff City Council acted on a recommendation by the city manager to provide a $250,000 tourism “stimulus.” The money went toward marketing Flagstaff during its traditionally slow months of May and June.

The effect on Flagstaff’s tourism industry was positive and immediate, says Heather Ainardi, director of the Flagstaff Convention & Visitors Bureau.

Ainardi says Flagstaff’s hospitality tax collections dropped almost 10 percent in March, compared to 15 percent for the state. In April, when the city began its tourism marketing push primarily in the Valley and Southern California, hospitality tax revenues fell just 1.5 percent for Flagstaff, compared 11 percent for the state. In May, Flagstaff’s hospitality tax revenues were flat and dropped 7 percent in June.

“So, although we were still down, we were doing well compared to the state. Where everybody else was seeing double-digit declines (in tax revenue), we were either flat or saw small declines. Our occupancy actually went up in May and June,” Ainardi says. “I think people look at marketing and don’t understand the return. It’s not something where you can put in a quarter and a dollar comes out. It truly is something where you put in a quarter and you see an across-the-board impact.”

According to a study the city conducted with the Arizona Office of Tourism, the tourism and hospitality industry has a $501 million annual impact on Flagstaff and creates 5,400 jobs every year.

And Ainardi and other tourism supporters in Flagstaff are on a mission to educate residents about how those tourism dollars affect their lives.

“We really promote that revenues from that tax don’t just go toward marketing,” she says. “They actually go toward parks and recreation, they go toward public beautification, economic development and the arts and sciences. In Flagstaff, we have a system developed where we can help people understand that the 47 miles of urban trails that they utilize on a daily basis are built and maintained through tourism dollars.”

As a member of ATA, the Flagstaff CVB has worked closely with the group in its efforts to save funding for the Arizona Office of Tourism. Ainardi says her organization plans to continue its partnership with ATA to further the alliance’s advocacy mission.

“Tourism is amazingly important and it’s been one of the traditional backbones of some of our economies,” she says. “It’s not everyone’s favorite industry, but it is one that continues to grow and benefit our communities.”

www.nicholstourismgrp.com | www.flagstaffarizona.org


Arizona Business Magazine

February 2010