A Goal Programming Model for Allocating State Promotional Effort to Regional Markets in Accordance With Tourism Potential

Tourism is a growing industry which contributes an ever-increasing amount of revenue to state governments. As a result, states have begun to compete heavily for the tourist trade via promotional and advertising campaigns. This is natural since each state has unique attractions which may be unfamiliar to residents of other states. However, while there is little doubt that promotion is necessary and useful, few models are designed specifically for the allocation of state promotional resources. This is due in part to the limited funds available to state agencies. The budget constraint prevents them from conducting sophisticated research and developing realistic models. This article describes a goal-programming approach for allocating a state's promotional effort to specific regions of the country based on the tourism potential of these regions. As such, the model does not optimize but offers guidelines for states to allocate their promotional effort. Allocation is based on several variables which reflect tourism potential, including income variables, travel propensity variables, a gravitational variable, and demographic variables. The model is developed using data obtainable from the federal government, thus minimizing the cost of application and development. The model uses Virginia as a demonstration state.