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Oklahoma travel market grows, increasing tourism dollars

Heide Brandes
6.23.2009


The state of the economy may be making an impact on jobs and income in Oklahoma, but the desire for fun and adventure is still going strong.

According to tourism officials, Oklahoma’s travel market is growing and remains higher than the nation’s average in tourism dollars coming in to the state. It’s good news in a time when bad news is making headlines.

“As of now, we are up compared to the national average,” says Austin Tackett, spokesperson for TravelOK. “The reason we’ve seen such a positive reaction is that it’s easy to drive anywhere in the state in a day, and to stay in Oklahoma it’s much more affordable. It’s good for us because people are staying in state for vacation, but we’re also seeing a lot of business from places like Dallas, Austin and Houston.”

According to the Oklahoma Tourism Department, travelers are already boosting business in Oklahoma. Visitors to the state’s traveler centers showed an increase of 12% over last year, and state officials are gleefully optimistic about this summer’s peak season.

WORTH THE PRICE
TravelOK plans to continue to spend money to promote the state’s tourism industry. In addition to media blitzes, TravelOK also invests in advertising and public relations.

“We’re always trying to push harder to get the word out,” Tackett says.

Money pumped into Oklahoma’s economy through in-state travel has more than doubled over the past 20 years, according to a preliminary study on the impact of tourism on the state’s economy.

According to a report by PricewaterhouseCoopers in 2008, Oklahoma’s tourism industry generates about $10 billion into the state’s economy. The report also states that Oklahoma has seen an increase of almost 174% in the past 20 years in travel-generated income.

According to Natalie Shirley, secretary of commerce and tourism at the Oklahoma Department of Commerce, domestic-travel spending contributes $5.3 billion to the state’s economy – at least it did in 2006. Although 2008 numbers are not in, she hinted that the spending may be down this past year.

“I would say that none of us are immune from the downturn in the economy,” she says. “I think the outlook and the future for tourism in Oklahoma remains very positive. Why? Because Oklahoma is a terrific value in terms of stretching your dollars.”

Because of the enormous financial possibilities, spending money to promote Oklahoma’s attractions is considered a “good investment.”

“Certainly, we do make an investment in promotions. We have a fantastic ad campaign in print and other media,” Shirley says, adding that advertising and marketing aren’t the only investments currently being made. “We’re also seeing a lot of activity in upgrades in state parks. Could we use more? Absolutely, but there’s never enough money to go around. We’re working hard to find ways to get our hands on some of the stimulus money for tourism.”

The state tourism department spent nearly $2.2 million this spring on television advertising, with the majority of the advertising – 80% – spent in out-of-state markets, including Texas and Arkansas.

Oklahoma City and its metro-area neighbors are seeing a mixed trend in tourism numbers, as well.

NORMAN
In Norman, tax dollars from the hotel/gift tax are higher this year compared to the same time last year, and the preliminary look at the March/April numbers suggest even better news.

“Norman is doing very well,” says Stephen Koranda, executive director at Norman Convention & Visitors Bureau. “A large part of that has to do with the success of the Embassy Suites, which added an expanded conference space, which allows Norman to host more people than ever.”

Gift tax receipts are up by 10% over last fiscal year, he says.

“From what I’m hearing, April and May is up even more,” Koranda says. “We’re trying to find out why we’re seeing such good numbers. It goes back to the success of the Embassy Suites, which opened at the perfect time, when the economy was down (in fall 2008). That brought new people to Norman in a time when the economy was falling.”

Add to that such attractions as the Sam Noble Oklahoma Museum of Natural History, the Fred Jones Jr. Museum of Art and Riverwind Casino, and Norman seems to have an optimistic future in collecting those tourism dollars.

“Also, the Medieval Fair, all the major sports events and the Norman Music Festival, which got national and international attention, and we’re very pleased with where we are,” Koranda says. “We’re continuing to do research on the trends in order to stay ahead of everything.”

OKLAHOMA CITY ADVENTURE DISTRICT
In 2008, more than 3.3 million visitors hit Oklahoma City’s Adventure District, and with preliminary 2009 numbers showing promise, Adventure District staff are hoping to beat that number.

“We’ve been seeing a lot of interest in this area,” says Katie Puckett, Adventure District coordinator. “Over spring break, the Oklahoma City Zoo set a single-day attendance record of 17,775. On May 16, Remington Park simulcast the Preakness Stakes with a record crowd attendance of 14,647.”

A down economy means more and more travelers are staying close to home and choosing more affordable options – good news for Oklahoma City’s Adventure District.

“I don’t think we expect to see a change,” Puckett says. “We’re a family destination, and people want to stay close to home. Plus, we have free parking.”

With seven major attractions located in a two-mile area, Puckett says the district expects to see additional crowds and tourism dollars over the peak summer months.

MIDWEST CITY
Midwest City isn’t as optimistic about its tourism dollars. Because the majority of its hotel/motel tax is generated by conventions held at The Reed Center, the down season could mean big drops for the city.

“We’re going to project a decrease for the next fiscal year,” says Guy Henson, Midwest City city manager. “Our revenues from about the first of January are trending down, and we as a city felt like we needed to be conservative.”

Midwest City’s tourism cash cow includes six hotels that cluster around The Reed Center.

“I think that although business at The Reed Center and Sheraton is strong, it’s also fairly cyclical,” Henson says. “That kind of business is strong from February to May and drops during the summer, picking back up in the fall. Also, all the private companies and business corporations and trade organizations have all pulled back a little bit on conference activity.”

And because fewer people are traveling far for vacations, those same hotels lose out on the smaller cash cow, being travelers along Interstate 40 through Midwest City.

“Fewer people traveling down I-40 means fewer people staying in our motels,” Henson says.

EDMOND
Since 1996, tourism dollars in Edmond have grown steadily, more than doubling over the past decade. With hotel bookings and spending still strong, Edmond is still taking a conservative approach to the next fiscal year budget as economic fears continue to loom.

“Hotels in Edmond are bringing in equal to, if not more, than last year,” says Kathy Williams-White, director of the Edmond Convention & Visitors Bureau. “We’re projecting tax revenue of $418,000 for this year.”

Next year’s tourism tax revenue is projected to be $428,000, which Williams-White calls conservative, although she notes that when she took the job at the Edmond CVB in 1996, the budget was only $149,000.

“As far as the number of monetary spending in group bookings this year, we’re expecting numbers this year to exceed last year’s numbers,” she says. “Youth sports is still No. 1 with us. The Lazy E Arena is also a great community partner, and they sell out our hotels 13 weekends a year.”

The American Youth Golf Association and PGA golfing events also drive tourism dollars to Edmond, she says.

“Still, we’re going to be cautious in our projections based on the economy,” Williams-White says. “We’re a drive-through state, and what affects the East and West Coasts will affect us, as well.” 



2  Comments

  1. HospitalityHank wrote on Tuesday, June 23, 2009
    Because Oklahoma has repealed tourism taxes, I would love to share my economic and community development research and introduce many tricks of the trade in OK. While I was quite successful at developing three downtowns simultaneously in South Mississippi, the public corruption and market manipulation associated with tourism taxes is keeping me out of the market to help rebuild my home economy. Since I am a member of the Creek Nation, and OK has repealed tourism taxes, I am ready to move on to greener pastures with a strategic marketing management program that can best be administered by the Native American Nations. I hope to come to OK one day and help you rebuild you economy.

  2. joepryor wrote on Wednesday, June 24, 2009
    It's good to know that revenue is coming from somewhere. At the same time sales tax collections are down in OKC and it jeopardizes the Ford Center renovation from being fully funded. It seems that tourism dollars are not making up for losses elsewhere.

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