Tuesday, January 25, 2011

Money Isn't Everything: Tourism promotion

Something rather odd has been happening. Prospects for this summer's tourism are looking good. It's not just the regional government saying so, the tourism industry is also confident.

This may not be odd when you consider factors such as increased prices in competitor destinations and events in Tunisia, but it is when you add in one further element, or rather its absence. Promotion. The government's promotion.

As mentioned yesterday, haggling is still going on in governmental circles as to what exactly the budget for promotion will be. Though the tourism agency (ATB) announced a couple of weeks ago that it will be assigning 22 million euros, precise spend and therefore precise plans have yet to be agreed.

Despite this, we are presented with evidence painting a rosy picture for this coming season. Which leads you to question the role of the government's promotion. There hasn't been any, yet there are optimistic noises.

Regular are the calls for more government money to be spent on tourism promotion and for television campaigns. Regular also are the links made between a failure to spend, a failure to engage in high-impact campaigns and a future of dwindling tourism in the face of international competition. Far less regular are any suggestions that this promotional spend and these campaigns may not make massive amounts of difference.

You can point to any number of reasons as to why the noises are optimistic, and one of them is reliability. It may not be an exciting message, but for a tourism market which is generally less than adventuresome and wishes only to be guaranteed reasonable value for money, then Mallorca can satisfy this wish. It doesn't necessarily need to offer excitement, especially as, as a "brand", one built up over many years, its attributes are well-enough known.

When promotion is spoken about, it tends to be done so in terms of headlining advertising, such as that involving Rafael Nadal. But this advertising is only part of the promotional equation. Its value lies as much with creating "front of mind" or reinforcing a message to the punter as it does with creating significant new business. Just as important is what goes on that is largely hidden, for example the co-operative campaigns between the government and the tour operators.

When the tourism minister Barceló was threatening to remove funding for such co-operation with Thomas Cook when it started deducting 5% from what it owed hotels, she was playing politics. It would never have been done, as to have done so would have been a case of cutting off her nose to spite Mallorca's face.

What is overlooked when it comes to tourism promotion is the sheer volume of it that is done on the government's behalf. The government has its own websites, but how many others are out there doing promotion that is as good if not better? In addition to tour operators and villa agencies, there are numerous websites, blogs, Facebook and Twitter accounts, apps for mobiles all doing their bit. Where the government has been missing a trick is in not engaging with this informal resource that does so much work for it.

The internet has totally transformed tourism promotion and, for the most part, it is considerably less expensive than television or glossy print advertising. Criticisms of the style of headlining advertising, of the Nadal type, or of its absence miss the point that its value is greatly exaggerated within the mix of media and the vast number of sources of information and promotion that are available to the tourist.

Shortage of funding for the government's tourism promotion is, in one respect, a positive. Or will be if it has the effect of making the tourism agencies think more carefully about how they use the different tools that exist in order to get their message across. Having a huge budget does not guarantee anything other than potentially wastefully expensive, "vanity" campaigns, the returns on which are difficult if not impossible to calculate. The Nadal campaign was an example of "ego" advertising; not Nadal's ego but that of the person responsible for commissioning it.

Altogether less glamorous are the associations with the tour operators, travel agencies and online brokers; the optimisation of websites and the working with those who are performing a task for tourism promotion; the tourism delegations, especially those in the newer markets. They are less glamorous but they are more meaningful.

So if it turns out there isn't some expensive TV campaign, it shouldn't be considered a failure. It might just actually be the most sensible thing the tourism ministry has done.


Any comments to andrew@thealcudiaguide.com please.

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