COBI 2015 - Marketing and Advertising

Overview
Issues
Financials

Sources Uses

FY 2016 Appropriation

The Marketing and Advertising program is responsible for the overall Utah tourism brand, marketing, advertising and promotional plans. The overall goal of the Marketing Program is to increase the national and international awareness, inquiries, and tourism visits to Utah. Key measures include total tourism visits, length of stay, repeat visitors, and person per day spending. Staff oversees the advertising agency contract and the budget, which includes the Cooperative Marketing Program. In addition, the Utah Sports Commission receives 10 percent of the appropriation to the Tourism Marketing Performance Fund to promote Utah through sports events.

Increasing out-of-state visitation involves branding, advertising, sales, and promotion activities directed towards consumers, media, and the travel trade. Promotional and development activities are used in the selling of Utah to the same audiences and include sales missions, consumer and trade shows. Market research is used to identify these appropriate markets, as well as geographic, activity-based, and emerging markets. Efforts are coordinated with city, county, convention and visitor bureaus, vacation destinations, and inter-agency offices and programs.

Funding History

Appropriation Overview

During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $18,000,000 from all sources for Marketing and Advertising. This is a 5.4 percent increase from Fiscal Year 2015 revised estimated amounts from all sources.

Appropriation Adjustments

In addition to statewide compensation and internal service fund cost increases, the following appropriation adjustments were made during the 2015 General Session:

DescriptionOngoingOne-Time Tourism Marketing Performance Fund$0$18,000,000

OngoingOne-TimeFinancing Source

$0$18,000,000GFR - Tourism Marketing Performance

The Tourism Marketing Performance Fund (TMPF) captures revenue from predefined tourism related sales tax growth. The money is spent primarily on advertising with the goal of increasing Utah tourism as indicated by certain performance measures. The annual amount increases by $3 million annually as long as certain measures are met.

Intent Language

HB0003: Item 58

Under Section 63J-1-603 of the Utah Code, the Legislature intends that appropriations provided for the Governor's Office of Economic Development Office of Tourism, in Laws of Utah 2014, Chapter 10, Item 10 shall not lapse at the close of FY 2015. The use of any non-lapsing funds is limited to contractual obligations and support: $350,000.

HB0003: Item 58

Under Section 63J-1-603 of the Utah Code, the Legislature intends that appropriations provided for the Tourism Marketing Performance Fund in Laws of Utah 2014, Chapter 282, Item 51 not lapse at the close of FY 2015. The use of any non-lapsing funds is limited to advertising and promotion: $5,500,000.

HB0003: Item 58

Under Section 63J-1-602.4 of the Utah Code, the Legislature intends that appropriations provided for the Motion Picture Incentive Fund shall not lapse at the close of FY 2015. The use of any non-lapsing funds is limited to $5,000,000.

Funding for the program is appropriated out of the Tourism Marketing Performance Fund. Funding for this restricted account comes from General Fund appropriations and earmarked sales tax revenues. The appropriation for the restricted account shows up in the Transfer section of this report.

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Expenditure Category

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Appropriation History by

Sources of Finance	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
GFR - Tourism Marketing Performance	6,950,000	7,000,000	9,000,000	12,000,000	15,000,000	0	15,000,000	3,000,000	18,000,000
Beginning Nonlapsing	1,399,000	1,382,800	1,414,100	1,279,900	0	2,078,900	2,078,900	(2,078,900)	0
Closing Nonlapsing	(1,382,800)	(1,414,100)	(1,279,900)	(2,078,900)	0	0	0	0	0
Total	$6,966,200	$6,968,700	$9,134,200	$11,201,000	$15,000,000	$2,078,900	$17,078,900	$921,100	$18,000,000

Show Table | Show Additional Information

Categories of Expenditure	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
In-state Travel	0	800	0	0	0	0	0	0	0
Current Expense	4,486,700	4,188,000	6,411,200	8,091,600	0	11,674,400	11,674,400	6,325,600	18,000,000
DP Current Expense	4,500	25,800	2,100	0	0	0	0	0	0
DP Capital Outlay	0	108,500	0	0	0	0	0	0	0
Other Charges/Pass Thru	2,475,000	2,645,600	2,720,900	3,109,400	15,000,000	(9,595,500)	5,404,500	(5,404,500)	0
Total	$6,966,200	$6,968,700	$9,134,200	$11,201,000	$15,000,000	$2,078,900	$17,078,900	$921,100	$18,000,000

COBI contains unaudited data as presented to the Legislature by state agencies at the time of publication. For audited financial data see the State of Utah's Comprehensive Annual Financial Reports.