future - duluth · will increase than it is that automakers will sell more cars or make money...

Bridgingpastthe

and the

A N N U A L R E P O R T 2 0 0 5

Futureand theFutureDriving economic success. Enhancing quality of life.

OFFICIAL DESTINATION MARKETING ORGINIZATION

GrowthDepending on who you talk with, or what

measurements you’re comparing, 2004Duluth tourism was, if anything, a mixed

bag. While there’s no single turnstile throughwhich each visitor passes each year, we do haveseveral different ways of accurately measuringindustry results and return on investment.

Final, adjusted data for Duluth tourism tax receiptswill show a 3.5 to 4 percent increase from 2003 to 2004. Although we have produced biggergrowth years in this important measurement ofoverall performance, it’s also important to recognize this was the 16th consecutive year ofsustained revenue growth for the city of Duluth.

Most Duluth tourist attractions, however, followeda nationwide trend of struggling with the effects of a lagging economy, the war in Iraq and a presidential election. Voters keep a tight grip ontheir pocketbooks during times of uncertainty and national elections invariably reduce consumerconfidence. It was a tough year for the amusementindustry everywhere.

The weather, more precisely the weather in placeswhere Duluth visitors live, put a damper on travelthroughout Midwest markets. Smith TravelResearch, a Tennessee-based expert, measuredhotel occupancy specific to the Duluth market uponly a fraction of a percent in 2004, indicating aflat year for overnight stays here.

Another vital piece of information to examine isthe fact that while Duluthians are benefiting frommore than a decade and a half of continuousgrowth, tourism in most American cities is justgetting back to 2001 numbers. Duluth was far better-off just maintaining its momentum than acity which might have been up 10 percent in 2004but down 20 percent a year earlier, for example.The pattern of success here in Duluth is a majoranomaly—while 2004 wasn’t a great year, mostwouldn’t classify it as a disaster either.

The recent commitments to major expansions inour tourism base are a testament to the confidencein tourism’s future here. The private constructionof a $20 million water park, The Edge, at the BestWestern Edgewater along with the proposed $36

million hotel/condo project downtown are bothhealthy indications of where we’re headed. Makeno mistake, however, developers assume major riskbecause there is no guarantee of profit or evenoccupancy for that matter.

Adding rooms alone is no more an assurance saleswill increase than it is that automakers will sellmore cars or make money simply by churning out additional inventory. We are all, however,fortunate and enthusiastic about facing the greaterchallenges and opportunities which lie ahead.

Looking farther into 2005, the Travel IndustryAssociation of America (TIA) predicts a nearly 2 percent increase for domestic leisure travel.Business travel is expected to increase 3 percent,while the amusement industry expects a 4-6 percentincrease in revenues nationwide.

Locally, our efforts in growing leisure travel andconventions are more important than ever. Keepin mind, these two segments are clearly the breadand butter for Duluth’s hospitality communitybecause different from most cities our size, business(corporate) travel here is minuscule at best.

While there were likely less folks visiting Duluthduring peak summer months last year and theylikely had less discretionary income to spend onentertainment, rest assured we’re doing everythingpossible to improve results for 2005. Latest comparative sales tax receipts for late 2004 andearly 2005 indicate hotel tax collections up asmuch as 9 percent. The trend is headed in theproper direction while the need for aggressivesales and marketing efforts is being relied uponlike never before. As the bar rises, we continueopening new doors for the local economy whileenhancing the quality of life in Duluth.

— by Terry Mattson, President Visit DuluthFebruary 20, 2005

S U S T A I N E D G R O W T H O N T A P F O R 2 0 0 5

Our efforts in growing leisuretravel and conventions aremore important than ever.

Reprinted from the Duluth Budgeteer

In 1935, the Duluth PublicityBureau, Inc. was founded as anindependent, nonprofit

organization dedicated to attractingvisitors and infusing tourism dollarsinto the local economy. Thirty-fiveyears later, the organization becamepart of a nationwide trend and began doing business as the DuluthConvention and Visitors Bureau.Today, it is simply referred to as Visit Duluth. In keeping with theoriginal mission, Visit Duluth alsoestablishes new initiatives to increasetourism, visitors and conventions, andcontinuously works to further enhancethe awareness of the visitor industry.

Visit Duluth is the official destinationmarketing organization of Duluth,Minnesota. The organization alsoserves as the primary custodian of ourdestination’s image.

To be effective, Visit Duluth operateswith a dominant private sector philosophy. Visit Duluth exists toincrease interest and awareness in discretionary (i.e., marketable) travelto and throughout the Duluth area.We are considered to be one of thebest role models for destination marketing in America.

Representing more than 450 membersand governed by a 25-member boardof directors, Visit Duluth is not a private entrepreneur, neither is it agovernment agency. We are proud tobe described as having the ability to “turn on a dime,” respondingproactively to ever-changing marketconditions, and interacting with ourstakeholders in the style of a corporation. We also have a publictrust and are totally transparent.While Visit Duluth represents thecommunity in an official capacity, itdoes not have some of the constraintsendemic to official bureaucracies.

Visit Duluth is a revenue generatorfor the city of Duluth and its

residents. Our job is to create andcapitalize on opportunities to support, promote and expand tourismwithin our city in an environmentallyconscious manner. By doing this, VisitDuluth helps ensure the city’s financial base by creating jobs,bringing outside customers to localbusinesses and increasing our community’s quality of life. Theseinvestments are funded by tax revenuesfrom hotel/motel accommodationsand food & beverage transactions, aswell as by private fund-raising efforts,membership dues and cooperative programs with Explore MinnesotaTourism and other entities. Clearly, it’svisitors paying to attract more visitors.

Duluth tourism is used as a model ofsuccess in countless examples. Themost recent being from the tourismexperts at the Knight Foundation’sPreservation Development Initiative.According to its report “The DCVB(Visit Duluth) can claim the remarkableaccomplishments of being the drivingforce behind 14 (16) years of growth intourism revenues…These results areeven more surprising when consideringthe disadvantages the DCVB (VisitDuluth) operates in regards to budget …There are several areas of concernrelated to budget that should beaddressed by the Duluth city government and the tourism industry …The amount is not guaranteed on anongoing basis, reflecting a lack ofcommitment to tourism … The $1.1($1.2) million from tourism tax revenuesand an additional $400,000 raised bythe Bureau (Visit Duluth) is unques-tionably inadequate for Duluth to

aggressively compete and successfullygrow in the competitive world oftourism.”

The Economic Summit Report sayssignificantly increasing the amount ofdedicated tourism tax for promotion isthe number one way to jump-start theeconomy.

Visit Duluth operates through aninternal line of leisure travel marketing, convention sales,packaged travel, consumer services,special events, visitor information andmember services. Most importantly,Visit Duluth’s ten full-time employeeswork in cross-functional teams to getthe job done by strategically promotingthe city regionally, nationally andthroughout the world. Additionally,seasonal and part-time staff memberswork with conventions, events, citytours and at our two information centers—one at 21 West SuperiorStreet, Suite 100 and the other onHarbor Drive.

Visit Duluth drives economic successas tourism is responsible for $400 millionin annual economic impact, 3.5 million annual visitors and more than8,000 local jobs.* We are dedicated to promoting the area as one ofAmerica’s great vacation and meeting destinations—providing comprehensive,unbiased information to all travelers.

T A B L E O F C O N T E N T S

visitduluth.com 1-800-4-duluth 1

Our Mission . . . . . . . . . . . . . . . . . . . . . . .1Extreme Makeover . . . . . . . . . . . . . . . . . .2100th Anniversary Aerial Lift Bridge . . . . . . . . . . . . . . . . . . . . . . . . .3Leisure Travel Marketing . . . . . . . . . . . . .4Consumer Services . . . . . . . . . . . . . . . . . .5Convention Sales & Services . . . . . . . . . .6Group Tours/Packaged Travel . . . . . . . .7Public Relations . . . . . . . . . . . . . . . . . . . .8Events . . . . . . . . . . . . . . . . . . . . . . . . . . . .9Cultural and Heritage Tourism development . . . . . . . . . . . . . . .10Media Plan . . . . . . . . . . . . . . . . . . . . . . .11visitduluth.com . . . . . . . . . . . . . . . . . . . .14

Visit Duluth is a revenue generator for the city ofDuluth and its residents.

Our MissionO U R M I S S I O N A N D O B J E C T I V E

* 1998 MN Sea Grant/DTED research

visitduluth.com 1-800-4-duluth 1-800-438-5884 • 218-722-4011 • Visit Duluth2

To increase interest in Duluth tourism andenhance awareness of Duluth’s official destination marketing organization, in 2005

the Duluth Convention and Visitors Bureau is changing its name to Visit Duluth.

Visit Duluth is the new operating name of the 450-member association and is how it will be knownto consumers and stakeholders. “The new name is a more contemporary reflection of what we represent,” according to president, Terry Mattson.It characterizes forward thinking with a simple translation of the core mission.

The change to Visit Duluth resonates a call to actionin the organization’s efforts; and was partially drivenby national research revealing “convention bureau”is not familiar with many people. “Our advertisingwill stand out better and that’s how we attract visitors,” said Mattson. In addition to a new name,new logo and new look, the makeover is in conjunc-tion with a move of headquarters from EndionStation in Canal Park to Lake Superior Place, 21West Superior Street, Suite 100.

When most people think of branding, they think ofproducts, not destinations, according to Mattson whosays the changes will enhance Duluth’s destinationbrand equity. These brand identity enhancementsare more in tune with Duluth’s customers and thetimes. The organization’s legal corporate name willcontinue to be Duluth Publicity Bureau, Inc. as originally established in 1935, however, it will bedoing business as Visit Duluth instead of theConvention and Visitors Bureau. Visit Duluth,visitduluth.com and 1-800-4-duluth are iconic,however, there’s no desire for the consumer to thinkin terms of Duluth Publicity Bureau, Inc.

The enhancements also help address another challenge facing the hospitality industry, which isconveying to government and residents why the association’s members are important to the community and how they contribute positively to the

local bottom line and quality of life. Another missionof the “new and enhanced” association is to becomethe most valued and respected organization in thelocal community.

Duluth tourism is one of America’s great success stories, however, many experts including representatives from the Knight Foundation’sPreservation Development Initiative say the success issurprising considering the disproportionately smallbudget dedicated to Visit Duluth. The hospitalityindustry applauds government for exploring “outsideof the box” ways to cover its shortfalls, however,wisdom suggests taking more of the tourism tax isnot a justifiable option. While tourism taxes aresometimes misunderstood, we are thankful for thecooperative efforts in progress to help avoid dangerous temptations to kill the golden goose.

Furthermore, the Economic Summit Report says significantly increasing the amount of dedicatedtourism tax for promotion is the number one way tojump-start the economy.

“Visit Duluth is the tourism industry’s trusted partner—the heart, soul and energy of the destination.It drives economic success and enhances quality oflife. The city of Duluth and its citizens appreciatetourism’s contribution: the better the destinationmarketing organization, the more valuable the visitorexperience,” added Mattson.

Extreme MakeoverG I V I N G O U R S E L V E S A NE X T R E M E M A K E O V E R

Brand Identity Enhancement

The change to Visit Duluth resonates a call to action…

Visit Duluth is proud to bepart of the summer 2005effort highlighting the 100th

anniversary of the Aerial Lift Bridge.

The event is similar to other successfulstatue events that have taken placearound the country: the Cows inChicago, the PEANUTS characters inSt. Paul, Donkeys and Elephants inWashington, DC and the Guitars inCleveland. The Duluth promotion celebrates the 100th anniversary ofour landmark Aerial Lift Bridge, bycreating a limited number of AerialLift Bridge statues to be painted and placed throughout Duluth, in an extravaganza we’re calling:

“Bridging the Decades … with Art”

Visit Duluth is working in collaborationwith the Greater Downtown Counciland the Duluth Public ArtsCommission on this exciting venture.Bridging the Decades starts with anartists paint-off at the DECC, an

opportunity for talented area artists toget creative with the bridge during afour-day painting session, sure to be amedia draw.

Statues go on public display the week of May 16 at various venuesthroughout the city. Selected statueswill be placed on display duringFourth Fest and the BridgeCentennial Celebration at BayfrontFestival Park.

The event will culminate with an auction of the statues in October.

Visit Duluth staff is cultivatingregional and national media attentionsurrounding the promotion. Thiseffort in generating “free” publicitywill benefit Duluth for years to come.All information will be featured onthe visitduluth.com Web site and further promoted by local mediasponsors and specially designed maps,ensuring visitors can work their wayaround the city to enjoy the statues.

Proceeds from the event will benefitthe Duluth Legacy Fund and a portion will be directed to the GreaterDowntown Council for downtownbeautification and to Visit Duluth forpromoting Cultural and HeritageTourism projects.

Aerial Lift Bridge History

Getting from Duluth to Park Pointbefore 1905 was not always convenientor easy. The problem of access to ParkPoint started in 1871 when the DuluthShip Canal was cut through to LakeSuperior. Duluth’s Aerial TransferBridge was completed in 1905 andcarried automobiles, horses and wagons and pedestrian traffic acrossthe canal. It cost 5 cents and tookabout one minute to cross the 300-footwide canal and a round-trip was madeabout every 10 minutes. Around 1925,it became apparent the Transfer Bridgewas not keeping up with demand.

After several designs were examined,rejected and reexamined, a final AerialLift Bridge plan was selected. The vertical lift span was built new with twolanes for vehicles, including streetcars,and two walkways for pedestrians andwas completed in 1930. The first lift fora vessel was on March 29, 1930 for thetug ESSAYONS to test the bridge’sreadiness for the shipping season. Some5,321 lifts were made that first year.

The bridge is owned and operated bythe city of Duluth. Operators keep thebridge in repair and make the liftseither full or partial as required byeach vessel. An average of about 5,500lifts is made each season with a high of7,583 lifts in 1978 and a low of 2,764in 1932. The bridge will have madenearly 400,000 lifts during the 70 yearssince the first one back in 1930.

Duluth’s Aerial Lift Bridge is listed onthe National Historic list and continuesto be one of Duluth’s most populartourist attractions.


100th Anniversary100TH A N N I V E R S A R YA E R I A L L I F T B R I D G E

Visit Duluth continues performingextensive research in identifyingboth Duluth’s target tourism

market, and the specific interests ofvisitors. The purpose of this is to targetour ideal consumer and most closelymatch their interests to the inherentcharacteristics of the Duluth experience.Research-based marketing yields increasedtourism traffic, increased spending, longerstays and a higher return on investment.

Selling Duluth is about selling an experience. It’s about developing a brandto which consumers feel an emotionalattachment and yearn to visit again andagain. We have determined that TwinCities residents are Duluth’s largestrecurring target audience. As such, weanalytically perform media buys thatmost cost-effectively target this audience.Through research-based decision making,

creative advertising and both private andpublic investment, we’ve made Duluth thetop destination for Minnesotans. Even ina climate of economic uncertainty, sustainedrevenue growth continues at 3 times therate of state and national averages.

Visit Duluth’s marketing mission is simply to bring the maximum numberof visitor dollars into Duluth’s economy.Many would call our results extraordinary.Like any business, our customers don’tjust walk through the front door. Visitorsneed to be lured, and that’s been the jobof this organization since 1935.

Merriam-Webster’s dictionary defines‘momentum’ as the strength or force by

motion or through the development ofevents. Duluth’s tourism industry sharesits momentum with the region’s entireeconomy. To keep this growth alive,Visit Duluth must continue aggressivemarketing to attract visitors year-round.Tourism now accounts for more than$400 million in annual local impact.

Specially designated tourism tax collections in the city of Duluth aloneraise some $5 million for the community.Visitors also impact additional tens ofmillions of dollars in general sales andproperty tax collections. Everyone benefits from tourism, whether they arein the hospitality industry or not. Forexample, every Duluth homeownersaves $400 a year in property taxes alonejust because of tourism.

Six out of ten Duluth visitors use Duluthadvertising as a source for their visits.Approximately 70 percent of Duluth’svisitors are cultivated from the TwinCities and 70 percent of that market has been here at least once in the last three years.

These are astonishing figures and moreresounding proof that our marketingstrategies are working. Tourism’s positive impact on Duluth’s economyhas more than doubled over the last decade, and tourism-related infrastructure developments haveundeniably made Duluth a better place to live. Ultimately, it is for its residents that Duluth is in the tourismbusiness. In 2005, our marketing platform calls for extensive media in

the Twin Cities market, including print and radio advertising. Similarplans have worked well in the past,and we anticipate a 5 percent growthin revenue impact.

While Visit Duluth is the official destination marketing organization ofDuluth, partnerships with ExploreMinnesota Tourism and related industries in northeastern Minnesotastrengthen Duluth and the region as avacation destination. Visit Duluth’s input into Tourism Growth Sessions and northeastern Minnesota associationscontinue to develop cooperative marketing for the region.

Lake Superior, romantic history andwilderness adventure help define VisitDuluth’s brand strategies. These clearimages based on indigenous qualitiescaptivate our consumers. With knowledge of our core audience andsupport of stakeholders, Visit Duluthwill continue serving our community by delivering visitors to Duluth.

EFFECTIVENESS MEASURES AND/OR ACTIVITY STATISTICS

T O U R I S M . I T ’ S W O R K I N G .

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Research-based marketing yields increased tourism

traffic, increased spending, longer stays and a higher

return on investment.

We’ve made Duluththe top destination

for Minnesotans.

Specially designated tourism tax collections in the city of

Duluth alone raise some $5 millionfor the community. Visitors also

impact additional tens of millionsof dollars in general sales

and property tax collections.

Leisure TravelL E I S U R E T R A V E L M A R K E T I N G

Delivering Unparalled ROI

Consumer ServicesC O N S U M E R S E R V I C E SSeller Meets Buyers

Visitor GuideAnyone, anywhere, who requestsinformation about Duluth will get theDuluth Visitor Guide—and you can be apart of it. The Guide is an 88-pagecolor brochure that is published everyJanuary, and over the course of theyear, nearly 300,000 copies are

distributed topeople attractedto visitingDuluth. Inaddition to theleisure traveler,the Guide is distributed

to: tour operators, travel agents,meeting and convention delegates,information centers throughout thestate of Minnesota, Mall of AmericaTourism Store, tradeshows, festivalsand events. Members receive reducedadvertising rates and, in effect, canreach a few hundred thousand peoplefor a few hundred dollars.

Web Site MarketingEverybody has a Web page, but noteverybody averages over 457,000meaningful page views and over36,000 unique users throughout agiven month. Join Visit Duluth,and you’ll get your name out in frontof these site surfers with a full membership listing. You can postyour events on the site calendar, getreduced rates on banner advertising,and if applicable, update your lodging availability twice a week.You can also tie into monthly eventpromotions and other marketingopportunities by partnering with VisitDuluth and its media connections.

Brochures and Reference MaterialsAs a Visit Duluth member, your busi-ness brochures will be displayed in ourvisitor office at 21 West Superior

Street, Suite 100 and our WaterfrontInformation Center on Harbor Drive.You’ll also receive copies of the Duluth

Visitor Guide, plus maps, fact sheets,etc. for you to offer your patrons.

Phone, Fax and E-mail ReferralsThis is what the Visit Duluth membership is all about. We bringpeople to Duluth and we send themto you. When a potential visitor calls,we have a full-time staff to answertheir questions, as well as a customized information on-hold program, which offers a recorded calendar of events and seasonal promotions for businesses like yours.We continuously refer business to ourmembers, and we offer solutions—like hotel availability and restaurantsuggestions—to our visitors. (We contact our members’ lodging properties every Monday and Fridayto update availability.)

Online Membership DirectoryListing of more than 450 businessesand organizations contributing to theenhancement of the tourism industry.

Advertising Opportunities

OnlineVisitduluth.com is extremely popularwith people planning trips not only toDuluth, but into Wisconsin and as farup the North Shore as Canada. Wecontinue growing traffic to the siteevery year. The site averages over457,000 page views per month and hasa monthly average of 36,000 uniquevisitors.

Hot DealsSelf-publishing coupons. This programallows advertisers to maintain theirown online coupon. They can changethe image and text to keep the offerscurrent for Web-site surfers.

Fixed Box adsThese ads are highly effective for the advertiser in bringing users to its Web site and ultimately to its business. Through the use ofanimation, the ads tell a story about each business. These ads are available throughout the site invarious sections including: the frontpage pop-up window, mainAttractions page, main Lodging page,main Dining page, main Shoppingpage, and within select areas of theLodging section.

Rotating Banner AdsThese ads are highly effective inbranding your business name byrotating throughout an entire sectionincluding: the front page, as well asthe Lodging, Dining, Attractions,Shopping and Services sections.

Additional Publications

Group Tour PlannerVisit Duluth members who canaccommodate motorcoach groupshave the opportunity to participate inthe Duluth Group Tour Planner. Fora nominal fee, you will receive a listingin the planner and on visitduluth.com’sGroup Tour page. Showcase yourbusiness to hundreds of tour operators,group leaders and travel agents whoare making plans for future tours.

Duluth School/Youth GuideMembers of Visit Duluth can reachschool and youth groups with a listingin the Duluth School/Youth Guide for anominal fee. This publication ismailed out to schools in Minnesotaand Wisconsin, as well as variousother states. Schools, communityeducation directors, scout leaders,churches and youth groups rely onthis publication.


65

60

55

2000 2001 2002 2003 2004

Total Confirmed Bookings 85 87 92 78 93

Delegate Spending $18,425,000 $28,982,870 $21,454,910 $22,295,510 $24,292,300

Visit Duluth is responsible forconvention sales within thecity resulting in some $36 mil-

lion in total annual economic impact.

Our staff works with the Duluth hospitality industry to maximize partnership opportunities— partnerships which enable us to cooperatively market the city throughdirect sales blitzes, familiarizationtours, special promotions and direct mail.

We aggressively sell Duluth and itsmeeting facilities to our clients.Our forceful combination of salesappointments and e-mail and newsletter updates has resulted in anumber of multi-year bookings, aswell as confirmation from groups that have never met outside theMinneapolis/St. Paul metro area.

Convention sales represent 25% ofour total tourism market, with regional, national and internationalconventions representing one-third ofour annual convention business.

We continue, therefore, to target abroader market base through salesefforts in those markets, especially inWashington DC and Chicago. Inaddition, we continue to expand ourgovernment, religious, corporate and association markets.

Once we confirm a meeting, ourConvention Services departmentoffers a wide variety of special services to meeting planners, includingattraction information, referrals tolocal suppliers, community resourceinformation and virtually everythingelse a planner needs.

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40

35

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5

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In 2004, the Visit DuluthConvention Sales departmentattended 10 industry trade shows,hosted two association Board ofDirectors meetings, conducted 30site inspections, prepared 96 bid proposals, spearheaded one salesmission and completed two majorindustry mailings. In addition, thesales office developed 218 new convention and meeting contactswhich will be followed up with aspotential new business for Duluthand our industry partners.

2004 AT A GLANCEDefinite Bookings . . . . . . . . . . . 93Total Number of Delegates. . . . . . . . . . . . 58,366Total Number of Room Nights. . . . . . . . . 46,830Delegate Spending . . $24,292,300

2001 2002 2003* 2004 2005

2004 STATS & FACTS

43

Bookings to date

5050

62MAJOR

CONVENTIONS AT THE DULUTH

ENTERTAINMENTCONVENTION

CENTER

2006

44

52

29

2007

* This number includes 16 weekends of the Minnesota State Women’s Bowling Tournament. Duluth hosts 800 women per weekend, 12,000 participants total, and while not held at the DECC, it is a significant convention.

11

2008

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Sales & ServicesC O N V E N T I O N S A L E S & S E R V I C E S

Building Relationships


Packaged Travel continues to bean important component ofDuluth’s successful tourism

industry. This market includes touroperators, travel agents and groupleaders who utilize motor coaches astheir mode of transport.

The sales and marketing strategiesemployed include direct sales,tradeshows, familiarization tours and annual mailings, as well as unsurpassed commitment to serviceand hospitality. These focused effortsproduce results, in spite of the difficulttimes this market segment has beenfacing for the past several years.A soft economy and concerns aboutpersonal safety have caused a devastating downturn of packagedtravel in many areas of the country.

Duluth has not escaped these challenges either.

Duluth continues as a port of call forthe cruise ship industry and hosted theGrande Mariner in 2004, as well asthe German cruise ship, Columbus.The latter will be here twice inSeptember and the Mariner’s sistership, the Grande Caribe, will be herein July. Duluth will be an embarkation/debarkation point for the July visits.

Our future plans are dedicated to continued growth in the group travelmarket by pursuing active, progressivesales efforts—in partnership with our members—and we believe thismarket will continue to make significant contributions to Duluth’stourism economy.

Total Number of Group Tours . . . . . . . .1,167

Direct Spending

Impact . . . . . . . . . .$2,400,250

2004 STATS & FACTS

DIRECTYear Motorcoach Tours Economic Impact

1996 828 $2,886,7201997 1,131 $3,023,7301998 1,152 $3,130,2001999 1,235 $3,355,5752000 1,352 $3,663,1002001 1,383 $3,690,2502002 1,118 $2,667,8002003 981 $2,336,5502004 1,167 $2,400,250

Visit Duluth, in partnership withthe Duluth Seaway PortAuthority, continues to actively

promote Duluth as a top Great Lakescruise destination. The German cruiseship, Columbus, a frequent visitor toour port, will make three visits toDuluth in 2005. In addition, theAmerican Canadian Caribbean CruiseLine’s 100-passenger ship GrandCaribe will be here for its third year,utilizing Duluth as an embarkation/debarkation port.

Attendance at cruise-related tradeshows, active contact with potentialcruise companies and operators, aswell as membership in the Great LakesCruise Coalition, are key initiatives inVisit Duluth’s marketing plans.

G R E A T L A K E SC R U I S I N G

Group ToursG R O U P T O U R S /P A C K A G E D T R A V E L

Meeting the Challenge


Duluth has an amazing storyto tell, and Visit DuluthPublic Relations department

actively delivers those messages tonational, regional and state media.Feature articles, press releases, eventpress releases and Web monthly list-ings are just a few of the resourcesused to attract attention to Duluthand area events. In September 2004,Visit Duluth hosted the Fall MidwestTravel Writers Association Conventionwhose members are those activelyengaged in travel writing for a newspaper, magazine or news service.Visit Duluth has generated numerousstories in regional and national publications from this group’s stay in Duluth.

In addition, we actively promote ourmembers through new initiatives inour toll-free and Web-site marketingprograms. The PR department solicitsmedia coverage, hosts media (television,radio, print, book and film) on familiarization tours, creates an annualpress kit and maintains an activedatabase of over 600 media contacts.

As a result of our efforts, Duluthreceives “free” press in a number ofpublications, including:� AAA Home and Away� Minneapolis/St. Paul Magazine� Minnesota Monthly� Midwest Living� Midwest Travel Writers Assn.� St. Paul Pioneer Press� Minneapolis Star Tribune� Articles in MN Snowmobiling,

Supertrax, Today Magazine and numerous other magazines.

When media representatives are inDuluth, we create itineraries, offertours and provide story ideas. A complete Duluth press kit is also

available, which includes businesscontact information. In addition, ourPR department manages a referencelibrary and an active database of over500 events. Visit Duluth members areencouraged to utilize this resource.

In 2004, the Visit Duluth Public Relations departmentgenerated over $4,000,000 ineditorial coverage in print,television, radio and book coverage. Here is how VisitDuluth benefits you:

Media� Active solicitation of media� Hosting all media (TV, print,

radio, book and film) � Newswire and E-mail news releases

sent to media-specific contacts with information about member events and specials

� Creation of annual press kit and press information

1-800-Marketing� Update of monthly festivals on

Music on Hold� Update of monthly calendar of

events on Music on Hold

Web Marketing� Update calendar of events� Monthly and weekly updates

and specials � E-News—an online newsletter of

lodging, event and attraction news and specials

Member Benefits� Active list of over 500

events and contacts � Active list of over

600 media contacts� Event consultation� Public Relations consultation

for members including

assistance with press releases and other marketing

� Electronic distribution of member press releases

2004 STATS & FACTS

We’ve Got Everyone Talking About Duluth …

� New York Times� New York Post� USA Today� ESPN� NBC Nightly News� Fox Sports Network� CBS This Morning� Chicago Tribune� Miami Herald� Kansas City Star� Lake Superior Magazine� St. Louis Times� Outside Magazine� Association News� Bus Tour Magazine� Milwaukee Journal Sentinel� Minneapolis Star Tribune� Des Moines Register� Home & Garden TV� Comedy Central� Minnesota Monthly� AAA Home & Away� Midwest Living� St. Paul Pioneer Press� Discover Magazine� Good Morning America� Chicago Daily Herald� National Geographic Traveler� Group Travel Leader� Travel America and many, many more …

MAGAZINE

Public RelationsP U B L I C R E L A T I O N SStretching Our Dollars


Each year Duluth is host to over500 exciting festivals andevents that attract thousands

of visitors to Duluth. The PublicRelations department at Visit Duluthconsults with existing and new mem-ber festivals and events with PR andmarketing services to develop a broadbase of exposure for success. Theseservices include press release distribution, media contact for interviews and story ideas. VisitDuluth also offers member festivals

and events a graphic link to the visitduluth.com Web site, which averages over 457,000 meaningfulpage views each month.

Duluth has many events that garnernational exposure includingGrandma’s Marathon, Bayfront BluesFestival, NorthShore Inline Marathonand AMSOIL Duluth NationalSnocross. Add to this list the JohnBeargrease Sled Dog Marathon,Fourth Fest, Green Man Festival and

Adventure Duluth and it’s easy to seethat all these events bring significanteconomic impact to Duluth. ThePublic Relations office continues to seek new events for the “off-peaktimes” to promote tourism with festivals and events for the entire family.

With a special festival or event forevery interest, Duluth is a great placeto visit or live.

EventsE V E N T SNo Other City Offers More or Better


Culture and HeritageC U L T U R A L A N D H E R I T A G ET O U R I S M D E V E L O P M E N T

Enhancing a Niche Market

Working to establish aCultural and HeritageTourism program, as

recommended by the PreservationDevelopment Initiative, is a priorityat Visit Duluth.

An active volunteer committee isworking with staff to develop threekey components for the launch ofthe program.

� Audio Walking/Driving Tours � Kiosk Featuring Heritage Sites

and Web Links � Maps, Special Signage and

Support Materials

The first audio tour, part of the“Boom Bust Boom” series will beunveiled at the Annual Statewide

Historic Preservation Conference in September. These initiatives werepart of the recommendations in thefinal PDI Assessment Report whichsuggested Duluth has great potentialfor capturing the growing Cultural and Heritage tourism market.Future plans include special events,medallions featuring the historic sitechosen for focus that year and additional audio tours. The committee is enthusiastic and madeup of a broad cross section of thecommunity; not all necessarilyinvolved in the tourism industry.The commonality is their individualinterest in Heritage/Cultural tourism.

Our work continues in earnest withCarolyn Brackett, an expert inHeritage Tourism at the National

Trust for Historic Preservation. Withfunding from the PreservationDevelopment Initiative and matching dollars from Visit Duluth,Carolyn is writing the first tour and will assist the committee in achieving the goals set forth by the group.

As the PDI report noted, “The city is already benefiting from tourism,drawing some 3.5 million visitorsannually.” Heritage travelers spend more per trip compared toother travelers and are more likely to extend their trip because of historic/cultural activity. Thismarket segment can augment thesuccessful track record Duluth hasas a thriving visitor destination.


eEvery year, Visit Duluth

analyzes media opportunitiesto determine the best ways to

reach its consumers. The media yearis separated into three parts. Inspring, Visit Duluth uses regionalmedia targeting Midwest travelersmaking their summer plans. In summer, Visit Duluth hones in on itstarget market—Minneapolis & St.Paul. And in fall/winter, Visit Duluthalso focuses on the Twin Cities market to help promote winter getaways to Spirit Mountain.

This summer, Visit Duluth will onceagain focus on the Twin Cities’market to spur getaways to Duluth.With a limited budget, it remainsimportant for Visit Duluth to

maximize its presence in this core target market.

Since most visitors plan their trip justa few days or weeks in advance, themedia plan focuses on the peak travelmonths of July and August. The multimedia campaign will utilizethree media to reach consumers:newspaper, radio and outdoor.

Newspaper print ads will appear in the two largest Twin Cities’newspapers, the Minneapolis Star

Tribune and St. Paul Pioneer Press. Theads will alternate weekly between theMain News section and the SundayTravel Section. With a combinedSunday household distribution of933,000, total

potential readership will exceed 2.1million every Sunday.

Radio advertising will continue to bean important media for Visit Duluth’smessage especially since its formatallows for flexibility in the message.By utilizing the Twin Cities’ highest-rated radio stations, the radio spotsare expected to reach almost 1 millionlisteners approximately 15 times overthe course of the summer.

Finally, Visit Duluth will use outdooradvertising in July. Outdoor advertisinghas proven to be a great support media,complementing the other two choices.With consistent daily messaging, VisitDuluth’s outdoor plan will reach over2.3 million drivers in July.


Media PlanM E D I A P L A NMajor Print, Radio, Outdoor

INTERNET MARKETING

For the past decade, Duluth’s official tourism Web site, visitduluth.com, hasbeen an increasingly successful marketing tool luring visitors to our city andour region. Since its inception in 1994, visitduluth.com has been heralded byother tourism organizations around the country as a model for successfulonline marketing. In the mid 1990s, while other tourism markets were just dipping their toes into the Internet pool, Duluth was leading the industry bydeveloping an online experience that both captivated visitors and providedeasy access to local businesses.

Over the course of its history, visitduluth.com has gone through several evolutions, each time enhancing visitors’ experiences by providing richer content and driving more people to our stakeholders. New designs have beenimplemented to provide more user-friendly navigation, featuring current eventsmore prominently and online movies where visitors can gain a better glimpseof several typical Duluth getaways. The results of these evolutions have led tobetter results for our community. For example, our lodging members reportthat nearly 90 percent of their online reservations come from people referredby visitduluth.com.

Like Duluth’s tourism industry, visitduluth.com has required strategic multimedia promotion to make it successful. In the late 1990s, visitduluth.comwas a consistent part of Duluth’s advertising promotion. However, over thepast three years, visitduluth.com has actually become the focal point ofDuluth’s summer campaign. With more and more visitors coming to visitduluth.com each year, our experiences are mirroring national travel trends. Ultimately, that has meant continued growth for Duluth’s tourism-related businesses.

SWEEPSTAKES

For the past three years, Visit Duluth’s advertising promotion has included anonline sweepstakes where people who came to visitduluth.com could enter towin one of four trips to Duluth. The “Summer Getaway Sweepstakes” offeredwinners the opportunity to “do what they wanted to do” by customizing theirown vacation. By selecting from four exciting packages, travelers can picturethemselves in a Duluth adventure, family vacation, romantic bed and breakfastgetaway or a Lake Superior leisure vacation.

The real value of the sweepstakes is driving people to visitduluth.com. OurWeb site is an important resource for visitors planning their Duluth getaway.That trend mirrors what is happening nationally as more and more people plantheir vacations online. It has never been more important for a destination marketing organization to use many media channels—including online—todeliver visitors. As page views in July and August of 2004 skyrocketed toalmost one million per month (up from an average of almost 400,000 in priormonths), Visit Duluth’s promotional approach is working.

e-CITY

Duluth has long been known for natural beauty, rich history, hardworkers and kind people. Along with these times, Duluth is evolving.

“e-City” is the catch phrase for long-term efforts to enhance the“Duluth experience,” help folks stay connected, and make information about the area’s resources easily available. As youexplore Duluth, it’s extremely easy to stay in close contact with the world.

Look for free wireless broadband starting in our most populatedvisitor district, Canal Park. In addition to these efforts, many of ourmembers help visitors stay connected by providing wirelessInternet access.

NEW FOR 2005

The Internet has forever changed destination marketing. Much of Duluth’s tourism success can be traced to Visit Duluth’s development of the destination’s official Web site, visitduluth.com.

Developing online efforts require very focused energy and resourcesto accomplish the mission. Our members and the city of Duluthreceive unparalled return on investment through visitduluth.com asthe site pays for itself while infusing additional resources into promotional efforts each year.

From Search Engine Optimization to pay-per-click strategies,Google and Yahoo reinforce the effectiveness and popularity of visitduluth.com. While traditional mediums still comprise themajority of the travel consumer’s decision-influencing media diet,the Internet has become a prolific travel-planning tool. Our Website is a very important element of a comprehensive destinationmarketing program.

In addition to providing everything from up to the minute changes,lodging updates, itineraries to increase attraction attendance andspecial database marketing, our software tools provide critical statistical measure of the strategically branded, professionally marketed and heavily visited site.

We are constantly developing updates and refinements, such asthe new and improved calendar of events and recently released membership directory. Other elements just added include links tothe 100th Anniversary of the Aerial Lift Bridge, which includes aspecial sign-up component “Come Home to Duluth.” Others in thecommunity can draw upon this component as a resource forrecruiting and retaining corporate residents. We are also assistingin developing a site for the new Great Lakes Aquarium exhibit, “The Abyss.”

Whenever tourism can lend itself to assisting other forms of economic development for Duluth, we want to make it happen.

21 WEST SUPERIOR STREET, SUITE 100DULUTH, MINNESOTA 55802-3025

218-722-4011 • F 218-722-1322Official Destination Marketing Orginization

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