Tourism

Culture Clout

Jan./Feb. 2010

Tennessee leverages an Old World office presence into millions of tourism dollars

Sometimes for a city, state or nation to signal its emerging influence in the global economy, it simply requires having a global presence. Along those lines, Tennessee tourism made its presence known almost two decades ago when the state established international tourism offices across Europe.

In truth, Memphis made the transatlantic voyage first, navigating for the rest of the state. In 1992, the Memphis Convention and Visitors Bureau (CVB) set sail for the United Kingdom and established an office in Hitchin, England, followed by Bielefeld, Germany, and Amsterdam, Netherlands. The Bluff City's presence in Europe is more fitting than one might expect—especially now.

"More and more Europeans who have visited America are looking for something different," says David Nicholson, owner of Lofthouse Enterprises, the U.K.-based marketing consulting firm contracted by the Memphis CVB.

According to British-born Nicholson, "In Europe, there's so much interest in the quintessential Tennessee culture." That's particularly true of Memphis -- the Home of the Blues, Birthplace of Elvis Presley and site of the National Civil Rights Museum.

Because of the city's bi-continental appeal, a plan for remote tourism offices arose out of sheer necessity. "There was so much demand out of Europe without even doing anything that it was difficult to be effective," says Regena Bearden, vice president of marketing of the Memphis CVB.

Memphis's role in leading the state, and largely the region, across the pond should not be underestimated. As the hub for Delta Air Lines, the Memphis International Airport began offering direct, international flights to and from Amsterdam in 1995. "That's one reason the international market, especially Europe, is so important to Memphis," Bearden says. The flight became a catalyst to establish the CVB's Amsterdam office -- an office shared by Tennessee, Louisiana and neighboring Mississippi. (The latter of which, as a result, formed a cross-border partnership with Memphis.)

But to fully understand the value of investment in European tourism offices, one must first understand how Europeans travel. According to Bearden, "80% to 90% of people in Europe still go through a wholesaler." Because consumer protection laws currently exclude online purchases to the United States, many Europeans rely instead on local travel agencies or operators.

With that understanding, Tennessee sought to grab a piece of the global tourism pie and formed a partnership with Memphis from the very beginning. That piece of the pie ended up being quite substantial.

"Tennessee tourism's investment internationally produces a fifty to one return on investment," says Susan Whitaker, commissioner of the Tennessee Department of Tourist Development. "This marketing effort is important in continuing Tennessee's reach to the ever-expanding global travel market, resulting in a $20 million economic impact to our state annually." (The Nashville CVB also contributes, forming a case-by-case partnership with Memphis separately from the state.)

Though the cost of maintaining multiple offices abroad is not cheap, when compared to the $20 million economic impact cited by Whitaker, it seems like a savvy investment.

"The state budget for Europe is $275,000, including $20,000 for the U.K. co-op, which includes Chattanooga, Graceland, Pigeon Forge, Memphis and Nashville," says Phyllis Qualls-Brooks, assistant commissioner of Community and Industry Relations of the Tennessee Department of Tourism Development.

A few hundred thousand seems a fair price to maintain a competitive standing overseas, and things are competitive. Ten other Southeastern states maintain offices in the United Kingdom, and Tennessee tourism cannot rely on the King alone when it comes to getting visitors to our side of the pond.

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