ATIA Newsletter
8/8/2011 11:04:00 AM

Today, the Alaska Travel Industry Association (ATIA) and the Alaska Department of Commerce, Community & Economic Development (DCCED) signed a memorandum of understanding (MOU) to collaborate on a $14.7 million Destination Tourism Marketing Campaign. Because this is a significant structural change to the way tourism marketing will be directed in Alaska, we have prepared the following FAQ document for our members.

What has changed from FY11 to FY12?

  • In FY12, the Alaska Legislature appropriated $12 million in the capital budget to DCCED while simultaneously zeroing out the funding of the Qualified Trade Association - ATIA - in the operating budget. This change is the first time in 11 years that the State will direct most aspects of the Tourism Marketing Campaign.

What did this cause?

  • At its core ATIA no longer has State money to execute the program. We do however have the staff, experience and relationships needed to successfully execute the program. For the past two months, ATIA and DCCED have been thinking through how to combine these resources in a workable manner. The MOU establishes that framework.

What does the MOU accomplish?

  • Based on the terms of the agreement, ATIA and DCCED have clarified how to proceed. The key parts that may interest you as an ATIA member are:
    • DCCED will execute a $12 million plan that is similar to the plan that ATIA has already developed for FY12.
    • Programs now directed by DCCED include advertising, the publication of the Official State Vacation Planner, TravelAlaska.com, North to Alaska, Joint Alaska/Yukon marketing, lead generation and fulfillment, public relations and media assistance and research.
    • ATIA will continue to direct the majority of trade and international marketing programs.
    • ATIA will continue to sell the co-op programs directed by DCCED in addition to the ATIA trade and international co-operative opportunities.

    If the State appropriated $12 million, how is there a $14.7 million marketing program?

    • As in past years, ATIA members contribute additional money to the marketing program by purchasing co-op programs and making community contributions. The MOU states that ATIA will continue to raise this additional money to maximize the size of the marketing program.

    How is the $14.7 million marketing plan funded?

    • $12 million was appropriated by the State for FY12. This is the money DCCED will direct, primarily in the domestic consumer market.
    • $2.7 million will be generated in industry contributions through the sale of FY12 co-op programs to ATIA members. This is the money ATIA will direct, primarily in the travel trade, international markets and for implementation.

    Who decides how the $14.7 million will be spent?

    • ATIA members who serve on the Marketing Committee will continue to meet periodically. While in the past this industry-led group directed the marketing plan, they will now advise the state on how to execute their $12 million portion of the plan.
    • DCCED may consider the recommendations of the ATIA Marketing Committee, however, DCCED will make all decisions regarding the expenditure of the $12 million.
    • ATIA will direct the spending of the $2.7 million generated from co-op sales and community contributions.
    • The marketing committee and DCCED will also cooperate to develop the FY13 marketing plan.

    Will prices for co-op programs change?

    • Prices for FY12 are currently the same as FY11.

    Is my 2012 Vacation Planner Ad going to be published?

    • Yes. All members who purchased a Vacation Planner and TravelAlaska.com ad prior to May 31st will have their ad published by DCCED. The funds from these sales are a portion of what ATIA is raising to meet the $2.7 million co-op sales goal.

    Can I purchase 2011 and 2012 consumer leads?

    • Yes. 2011 leads are now available again. 2012 leads will become available in mid- October.

    Can I sign up for consumer shows, trade shows, sales missions, brochure distribution now?

    • The co-op calendar will be coming soon. Each program will be kicked-off in the ATIA newsletter and website as they become available for registration, as in past years.
    • Look for co-op magazine, consumer shows, the September Japan Sales Mission and JATA to kick off first.

    May I login to TravelAlaska.com to modify my web ads, purchase a banner ad or upload a travel special?

    • Yes. We apologize that this functionality was offline while we developed this plan. Your usernames and passwords have not changed. Ads ordered here constitute a sale between you and ATIA.

    Because DCCED is directing most of the program, do I purchase co-op ads through their office?

    • No. The MOU gives ATIA the responsibility to sell all co-op programs regardless of which party is directing the program. ATIA will continue to sell magazine ads, consumer shows, website ads, leads and other programs directed by DCCED in addition to trade shows, international sales missions and publications directed by ATIA.

    Is ATIA maintaining an office and staff?

    • Yes. ATIA will be your point of contact for all co-op programs, regardless of whether those programs are directed by DCCED or ATIA. There are no changes to the staff or the method in which you would normally reach them. Click here to contact us.

    How long will this arrangement last?

    • The FY12 appropriation for $12 million to DCCED was for one year only. Historically, all previous appropriations to ATIA from the State were also one year at a time.
    • The agreement in the new MOU is also in force for only one year, ending June 30, 2012.

    Who can I call with questions?

    • We welcome your questions and comments regarding this structural change and how it impacts your business. Please feel free to email rpeck@alaskatia.org or call us at 907-929-2842 if you would like to speak with us.

    We are pleased that the important business of marketing Alaska to the world continues with little change in the market. All of us at ATIA want to thank you for your patience these past months - we know this has been stressful while you plan your 2012 marketing.

    Please plan on attending the ATIA Annual Convention & Trade Show to be held October 4-6, 2011 in Juneau so that together we can positively shape the future of the travel industry in Alaska.