Could Minnesota become a 'Top 10' destination? Tourism officials seek cash, new approach

Minnesota is worth a visit. Better yet, a move here.

The state is struggling to share that message. Blame Minnesotans' humility. Or, more likely, the fact that we spend less than neighboring states to preach the joys of the Land of 10,000 Lakes.

Either way, tourism officials say their old marketing tactics aren't working in an increasingly competitive post-pandemic fight for visitors.

"They have been saving up money. They can travel to wherever they want. How do we make sure that we are the place that they pick?" said Explore Minnesota Executive Director Lauren Bennett McGinty. "That requires a lot more thought, research and generally more bold marketing than we've done before."

Explore Minnesota, the state's tourism agency, is pitching a new plan that has legislators contemplating the biggest tourism spending boost the state has ever seen.

Minnesota's tourism budget has stagnated for the past decade, stuck at less than $30 million every two years. Lawmakers are negotiating a potential increase in the agency's budget to roughly $47 million over two years, and Gov. Tim Walz has proposed nearly doubling the amount to $57.5 million. However, any potential increases might only be temporary.

Among a regional swath of nine states competing for tourists, Explore Minnesota's budget ranked second lowest in 2022, according to the U.S. Travel Association. Only North Dakota spent less. Minnesota was 27th out of 40 states reporting their annual tourism budgets.

Just how big of a boost the state agency could get — and what new initiatives are funded — will be determined in the final few weeks of this current legislative session. DFL Sen. Bobby Joe Champion, DFL-Minneapolis, who sponsored the Senate bill with tourism dollars, said he expects a significant bump.

"It's about our economy. How do we make sure that we are attracting folks here and our businesses are growing?" Champion said. "I see this as a part of a great business decision, I don't see it as just vacationing. But guess what? Vacation and tourism can also lead to what? People become more aware of who you are and spend money in your area."

Time to 'take back the mic'

The return of tourism has been uneven across Minnesota since COVID-19 hit.

Up north, business has boomed at resorts and Airbnbs, while metro-area visits haven't rebounded and companies are sending fewer business travelers to convention events, said Rachel Thompson, executive director of Visit Greater St. Cloud. More state dollars are needed to brag about destinations in all corners of the state, she said, from northern recreation to Waite Park's outdoor amphitheater to arts and cultural events in Minneapolis.

Minneapolis' recovery has lagged other parts of the state and country, largely because of the slow return of business travel, said Melvin Tennant, president and CEO of Meet Minneapolis. The local tourism agency is trying to "take back the mic" after three difficult years, he said.

Meet Minneapolis recently launched its biggest marketing campaign in more than a decade, Tennant said, aimed at changing misconceptions about the city. It includes material such as photos of Patisserie 46's baked goods on a billboard reading, "Minneapolis desserted," then adds, "but not like you've heard."

Champion said Minnesota needs to promote its diversity and different cultural events as well as the Boundary Waters and the state's lakes.

"All of these things become increasingly important post-George Floyd," Champion said. "People sometimes question, 'Well, why do you want to visit Minnesota?' I want people to know that Minnesota always has things that we can improve upon, but we're also a great place to live and explore."

David Lorenz, vice president of Travel Michigan, drew parallels between Minnesota and his state. When the "Pure Michigan" brand was launched 17 years ago, "people had really lost an understanding of who we are," he said, and Michigan was perceived as a cold place whose best days had passed. Lorenz said Detroit has since seen a renaissance and Pure Michigan's work inspiring pride in the state might have helped.

Travel Michigan's funding stands out in the region. Its annual budget is $39 million this year, he said, more than twice that of Explore Minnesota.

"You cannot do the job that is necessary for a state today, frankly, adequately in my mind, with that budget," Lorenz said of Minnesota.

His agency's dollars allow it to reach more communities, such as marketing to travelers with disabilities or airing ads on radio stations aimed at Black or Latino listeners, he said.

It's the exact idea Explore Minnesota executives are talking about.

Standing out from 'Midwest wallpaper'

Minnesota's tourism industry was "on autopilot" before 2020, said Explore Minnesota's Bennett McGinty. "When everything comes crashing down you have to set new goals."

She took over Explore Minnesota in 2021 and led a strategic overhaul, emerging with a vision to make Minnesota a "Top 10 destination." Exactly how that is measured remains a work in progress, she said.

Walz's proposed two-year budget would put $12 million behind the goal. Half of that amount would go to competitive grant funds for "large-scale sporting events and other major events," budget documents state. Bennett McGinty said such events as youth sports tournaments often bring families who stay longer and spend more.

Some of the proposed money would go to grants for tribal nations to do tourism work and to expanding travel marketing to more diverse communities and researching different markets and consumers.

The agency is trying to reach new people and pitch Minnesota in a unique way, Bennett McGinty said. While many states share images of beautiful places, she said she wants to showcase prominent Minnesotans telling their community's story.

"I do see it as an opportunity for us to stand above the Midwest wallpaper that exists here, where you are surrounded by our key competitors — Michigan, Wisconsin, Iowa, North Dakota, South Dakota — and you see very similar landscapes or opportunities," she said. "What I love about Minnesota is that we actually have a very unique cultural fabric."

A second proposed $12 million boost would establish a Explore Minnesota for Business division that would entice workers and businesses to come to the state. The division would start with reconnaissance of places to target, she said, such as looking for tech worker hot spots and where teachers are going to school.

Whether the agency would get both $12 million boosts remains to be seen. The House bill contains dollars for one; the Senate has cash for the other. The bills must be reconciled. And if the agency gets the dollars, it has a short timeline to produce results.

The proposed increase is one-time cash, set to expire after fiscal 2025.

"I see it as is an opportunity to jump-start these programs, report on them," Bennett McGinty said. "Then be able to, hopefully, get more sustainable funding in the future."