 President's Message
University of Utah Health Care in South Jordan
Last week I attended the groundbreaking for the 208,000 square-foot University of Utah Health Care facility that will provide residents of southern Salt Lake County with convenient access to primary, specialty and emergency health care services. This center, in conjunction with access to planned TRAX stations and the future Mountain View Corridor creates more great reasons for businesses to locate in the southern end of Salt Lake County. It also shows the continued partnership between public and private entities like the University of Utah, Rio Tinto's Kennecott Land, designer Dixon and Associates and Layton Construction.
The center is scheduled to open in late fall of 2011. Here's a link to a media story about the groundbreaking.
Today's Economic Review also includes links to many of the ED-related news stories from the past week. As always, if you have comments, suggestions or topics you'd like to see in the Economic Review, please contact us by clicking the "Comments" link on the bottom of this page. Enjoy!
Jeff Edwards
President and CEO |
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Feature Story
Renewing TMPF Important for Bringing Tourists to Utah, Creating Jobs
Utah's world-famous Delicate Arch…in Arizona?
Before its recent efforts to re-brand Utah as "Life Elevated," the Utah Office of Tourism (UOT) conducted a marketing survey. According to the results, survey respondents thought that Delicate Arch -- the most famous and pictorial arch in Utah's Arches National Park -- was in Arizona!
After gracing Utah license plates and other promotional material for more than a decade, efforts to brand the state using the famous arch had all but failed.
"We were shocked," says Utah Office of Tourism Director Leigh von der Esch. "Clearly, there was work to do to break Utah's amazing red rock scenery out of the clutter."
What is the TMPF?
Enter the Tourism Marketing Performance Fund (TMPF). The TMPF was created in 2005 by the Utah Legislature using a performance-based funding mechanism based on increases in sales tax revenue for 21 tourism related industries and a declining annual allocation from the general fund. The fund received an initial appropriation of $11 million to be used to re-brand the state as "Life Elevated®". The money would be administered by the Utah Office of Tourism Board under the direction of the Governor's Office of Economic Development (GOED).
Five years later, has the marketing program funded by the TMPF had an impact?
"There is no question the Tourism Marketing Performance Fund was a game changer for our ability to promote the state," says von der Esch. "Before the fund was created we were trying to shepherd $900,000 to market the entire state for a year. It didn't go very far—only allowing for some print advertising and targeted radio ads."
The UOT's $2.4 million 2006 spring/summer ad campaign yielded a $167.7 million impact, while a $4 million ad campaign in the spring of 2007 led to an $851 million economic impact. According to a recent study, the UOT's return on investment for its 2009 non-winter advertising program was $222 for each $1 spent on marketing and $18 in tax revenue for each $1 spent on marketing. For the entire year, the average 2009 ROI in tax dollars to the state was $15.79 for every $1 invested in advertising. Furthermore, the non-winter marketing campaign generated more than 800,000 incremental trips, more than $700 million in incremental economic impact, and more than $56 million in tax revenue.
Also of note: UOT's $3.4 million "Life Elevated®" summer campaign in 2009, which included ads on national cable and on local television stations in Denver, Phoenix, and Los Angeles, online, and in targeting print publications, received the Travel and Tourism Research Association's (TTRA) top national marketing award.
Since 2004, traveler spending in Utah has grown from $5.65 billion to $6.2 billion, while state and local tax revenue has grown from $547 million to $625 million. Von der Esch notes that Utah is not only attracting tourists, but also luxury resorts. In fact, several new luxury resorts have opened in Utah this past year, including Amangiri near Lake Powell, Best Western Bryce Canyon Grand, the Waldorf Astoria Park City, and St. Regis Deer Crest Resort in Park City. The resorts have spent an estimated $528 million on construction and created approximately 1,400 full and part-time travel-related jobs in the state.
The TMPF Should be Continued
Because the TMPF will require new funding in 2011 for the UOT to continue its branding and tourism marketing efforts at the current level, GOED is working hard now to prepare for the 2011 legislative session, educating state legislators and working with legislative committees to demonstrate the significant impact the TMPF has had on Utah's economy. In fact, renewing the TMPF is one of three top legislative priorities for GOED, along with renewing of the West Coast Marketing Program and the Motion Picture Incentive Fund.
"We certainly appreciate Governor Herbert's support and that of the legislature," von der Esch says, "and hope we can hold on to our funding because our "Life Elevated" brand is working. It is certainly popular with the out-of-state market, and is clearly successful."
Indeed, Utah's $6.2 billion tourism industry accounts for approximately 110,508 jobs and is typically ranked in the top five or six in terms of revenue production for the state's economy. Raising the Utah brand out of the clutter to "Life Elevated®" has been a boon to the economy.
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Calendar
Aug. 12-13
Utah Rural Summit (SUU, Cedar City)
Aug 24-27
AUVSI's Unmanned Systems 2010 (Denver, CO)
Aug. 28
2nd Annual Ladies Curiosity Golf Challenge at Thanksgiving Point
Sept. 10-11
Mountain West Biomedical Engineering Conference (Park City)
Sept. 14-17
Utah League of Cities and Towns Annual Convention (Salt Lake City)
Sep 19-21
CorNet Global Summit (Phoenix, AZ)
Sep 26-29
IEDC 2010 (Columbus, OH)
Oct 2-6
IAMC Professional Forum (Hot Springs, VA)
Oct 11-14
SAMPE Fall Technical Conference (Salt Lake City, UT)
Oct 12-13
SME Tooling for Composites Conference 2010 (Salt Lake City, UT) (Co-located with the SAMPE conference)
Oct 12-14
Solar Power International 10 (Los Angeles, CA)
Oct. 14-15
Nano Utah 2010 (Salt Lake City)
Dec 15
EDCUtah Holiday Open House (Salt Lake City)
Jan. 12, 2011
"What's Up Down South" Washington County Economic Summit (St. George)
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In the News
Governor Herbert appointed NGA economic development and commerce committee chair
Utah Governor Gary R. Herbert is the new Chair of the Economic Development and Commerce Committee for the National Governors Association.
(KCSG Television)
Business Facilities notes Utah's quality of life, education climate
Utah is at the top or near it in several categories of a new annual ranking of best places to do business.
(Deseret News)
Outdoor Retailer expo sold out and thriving
The Outdoor Retailer Summer Market, which saw smaller attendance last year, has sold out all its exhibit space for this year's expo, which will run Aug. 3-6 at the Salt Palace Convention Center.
(Deseret News) (KSL) (Park Record) (KCPW) (Fox 13) (Utah Pulse) (Salt Lake Tribune)
Op-ed: Outdoor recreation a long-term economic boon
True or false? Conservation of public lands is an economic problem. Conservation of public lands is a marketing problem.
(Salt Lake Tribune)
Hill Air Force Base closer will get F-35s
Thunder rumbled over northern Utah on Thursday as Air Force officials made their latest military-industrial forecast: Lightning is coming to Hill Air Force Base.
(Salt Lake Tribune)
Businessweek ranks Salt Lake City 21st in 'Best Cities for New College Grads'
Salt Lake City's economy has grown beyond its origins as a farming and mining community. Today the city serves as the center of Utah's government and business. Big employers include the state government, the University of Utah, and a variety of companies, including Wells Fargo and Huntsman, a huge chemical company headquartered in the city," says Businessweek.
(Businessweek)
Two USTAR/USU technologies reach semifinalist stage in Cleantech Open
VolumeWind® and DIAL Emissions Monitoring, two technologies under development by researchers at the Utah State University Research Foundation (USURF), have reached the semifinalist stage in the Rocky Mountain bracket of the national CleanTech Open contest.
(Utah Pulse)
University of Utah reports research funding growth
The University of Utah says its research funding increased 27 percent in the fiscal year that ended June 30, largely because of federal stimulus money.
(Businessweek)
Index: Conditions in Utah, Colorado, Wyoming continue modest rise
Business conditions in the mountain states of Utah, Colorado and Wyoming, took another step forward in July and remained in growth mode for the 10th consecutive month, a Creighton University economist said Monday.
(Salt Lake Tribune) (Deseret News)
Overstock.com to open Tooele call center
Overstock.com Inc. announced Wednesday that it has leased 15,000 square feet in Tooele for a new customer service call center.
(Deseret News)
County highlights economic bright spots
As reported in the Clipper last week, Davis County isn't the 18th best place in the country in terms of economic growth opportunities for nothing.
(Davis County Clipper)
Passenger numbers, fares are up at SLC International Airport
Passenger numbers at Salt Lake City International Airport picked up in the first half of 2010, a sign Utah's recession-battered economy is healing.
(Salt Lake Tribune)
New business ideas take shape in Salt Lake City at The Foundry
If you're looking for a reason to hope for the economy -- not to mention hope for humanity -- a crucible of sorts for start-up businesses and the entrepreneurially obsessed called The Foundry has some prime examples.
(Deseret News) (Daily Herald) (Salt Lake Tribune)
UTA to become development partner
In coming weeks, deals could be inked and shovels could be digging into the ground, beginning the first two transit-oriented developments (TODs) owned in part by the Utah Transit Authority.
(Deseret News) (Salt Lake Tribune)
Discount retailers expand to appeal to bargain hunters
The economy has taken its toll on the retail industry, which has been plagued by store closures and bankruptcies.
(Salt Lake Tribune)
Manufacturing lifts recovery with year of growth, though Utah lags
It's a rare bright spot in an otherwise troubled economy. The nation's manufacturing sector has now grown for a solid year, and more of its companies say they're ready to hire.
(Salt Lake Tribune)
Farmers market sparks business in Sugar House, despite vacant unused spaces
Business owners in downtown Sugar House say that the new farmers market is helping them with sales and additional foot traffic.
(Fox 13)
Stimulus credited with creating or saving 5,800 Utah jobs in 2nd quarter
Just more than 5,800 jobs were created or saved in Utah by federal stimulus funding over the past three months, according to figures released Friday.
(Deseret News)
World Cup Archery event drawing attention to sport, dollars to Ogden area
It's time to let the arrows fly. More than 300 archers from around the globe have descended on the city for this week's Archery World Cup event as Ogden becomes the first American host site in the five-year history of the competition.
(Standard-Examiner)
Davis County to use federal stimulus funds to build cineplex
County and city officials took steps Tuesday to allow $12.6 million in federal stimulus funds to be used for construction of a 14-screen movie theater on Centerville's west side.
(Salt Lake Tribune) (Standard-Examiner)
3-D film company coming to Salt Lake Community College
A company that creates 3-D footage for films and games is moving into the Miller Business Innovation Center at Salt Lake Community College. The center announced Wednesday that 3D Motion Imagery is now a client of the center, alongside 12 other companies.
(Deseret News)
Residents, Miller reps discuss Cinedome property's future
Representatives from the Larry H. Miller Group met with concerned residents to explain just how the plan to replace the Cinedome with an auto dealership will affect the area.
(Standard-Examiner)
Stimulus at work: Wescor Inc. credits federal funds as key to success
Wescor Inc.'s Logan warehouse hums with activity as 90 employees churn out biomedical devices that will be shipped all over the United States and Europe.
(Herald-Journal)
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