The Vermont legislature is currently considering a proposal by Governor Douglas, which he announced along with members of the Senate Economic Development Committee, to dedicate $8.67 million in available federal stimulus funds for economic development. Part of that proposal would appropriate up to an additional $500,000 to the Vermont Department of Tourism and Marketing (VDTM) for the promotion of Vermont as a winter destination. At less than 6 percent of the available federal stimulus package, $500,000 is a small portion of those funds but can help tremendously with this winter s tourism economy.
The appropriation is critical to the Vermont economy. At a time when the tourism economy has continued to hold up well despite incredibly challenging economic times, it is more important than ever to ensure we are making an adequate investment to promote winter tourism. Vermont enjoys the tremendous advantage of being within a day s drive of 80 million people in the metropolitan markets to the north and south, but it is not an advantage that we have exclusively. We share this advantage with Maine, New Hampshire and New York, and, with more and more winter visitors opting to stay closer to home and forego the trip to an airline-dependent destination, it is critically important that we be competitive with our northeastern neighbors when getting the word out to our core markets. Vermont s ski areas spend upwards of $20 million on marketing winter in Vermont, and these funds are an opportunity to bolster VDTM s existing budget for promoting the collective brand of our unique state.
The return on investment for Vermont s economy is proven. The state s economist has confirmed for VDTM that there is a positive return for the state s tax revenues from the Department s marketing and promotional efforts. And it s a quick return, with VDTM s expenditures generating revenue returns within 3-6 months. That certainly makes for a worthwhile investment when the state is faced with budget shortfalls in the near and long term.
The economic impacts of winter travel go far beyond the ski areas. Skiers and snowboarders annually spend upwards of $700 million when they visit Vermont, and it is important to note that 2/3 s of those expenditures occur off-mountain at the numerous businesses throughout Vermont communities that are integral to the ski economy. In addition, the seven ski areas that lease land from the state provide over $2.5 million in lease payments annually to the Department of Forests, Parks & Recreation on a performance-based formula the better the ski business, the more revenue for the Department. Not only do those ski area payments provide nearly half of the Department s state parks budget, but those dollars translate into capital improvements and employment throughout the summertime park season. In addition, the funds would bolster VDTM s marketing campaign which prominently features the Cabot brand and the farmers of the Cabot cooperative which are so integral to Vermont s agricultural heritage.
The timing for this appropriation is perfect. Our mountains are coming off of strong business over the Christmas/New Years and MLK holiday periods, snowmaking conditions have been ideal and our ski areas have been able to offer excellent trail coverage. This, along with frequent snowfall in the backyards of our metropolitan markets this season, sets up Vermont s ski industry with tremendous momentum for the critical Presidents Week holiday period and for the remainder of the ski season which goes through the entire month of March and typically extends well into April depending on conditions. Therefore, it is vital that this appropriation be approved quickly so that VDTM can get the additional ad dollars in motion for maximum return.
Parker Riehle of South Burlington is President of the Vermont Ski Areas Association and member of the Travel Recreation Council.
Parker M. Riehle, President
Vermont Ski Areas Association
P.O. Box 368, 26 State Street
Montpelier, VT 05601
P: 802.223.2439 F: 802.229.6917
www.skivermont.com