The Halo Effect: How Travel Marketing Shapes Economic Growth

Forbes

4 hours ago

Abbi Whitaker, Co-Founder of The Abbi Agency, marketing & PR expert for travel & tourism, public affairs and professional services clients
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Walk into any tourism office, and you'll find a team crafting campaigns to attract visitors. Down the hall—or sometimes even just a few desks away—another team is focused on economic development, working to position the region as an ideal place to live, work, play and invest.
Yet too often, these efforts operate in isolation. These teams miss a critical opportunity to amplify their impact through a unified brand voice—one that speaks not only to potential visitors but also to prospective employers, new residents and students considering the region's colleges and universities.
Research published in Economic Affairs in 2023 reinforces the power of a unified approach between branding and economic development. The key takeaway: Destination marketing has the power to shape broader perceptions of a particular place. Longwoods International, a market research consultancy, calls this the halo effect.
A 2024 report from Destinations International highlights how destination marketing not only boosts tourism but also enhances a region's appeal for talent recruitment, business investment and overall economic growth. In fact, the report states that for every dollar invested in destination marketing, communities saw an average return of $85 in visitor spending and $9 in tax revenue.
Let's take a look at the wider impact of travel marketing and how communities can leverage it to strengthen both the visitor economy and broader development strategies.
The research published in Economic Affairs focused on the connection between economic growth and destination branding. Through a qualitative study, the researchers found that "a strong destination brand can have major implications on a nation's economic development including per capita income, GDP, new jobs and lifestyle of residents." This is the halo effect in action.
It makes sense. A positive firsthand experience in a destination leaves a lasting impression, whether for vacationing families or corporate executives scouting for relocation opportunities. Nearly every economic development agency highlights quality of life as a selling point for attracting new businesses and talent. That message resonates even more when it reaches people who have already visited and experienced the destination for themselves.
At a minimum, a corporate executive browsing a list of potential relocation sites might pause and think: 'I visited that city once, and it was great! Let's give it a closer look.' Having served on the board of a regional economic development agency, I've seen this play out time and again—major corporate relocations often come down to decision makers wanting to live in places that offer attractive lifestyle amenities.
Destination marketing enhances more than just corporate relocation efforts. It also plays a role in attracting retirees, entrepreneurs, young professionals, university students and second-home buyers. Each of these audiences can be influenced by the positive impressions created through tourism campaigns.
On the flip side, it's important to acknowledge that economic development marketing rarely drives visitation. A campaign touting low industrial energy costs may be crucial for attracting manufacturers, but it won't inspire travelers to book a weekend trip. That's why destination marketing plays such a critical role—it creates a halo effect that strengthens a region's overall brand appeal in ways traditional economic development marketing simply can't.
So, how can destination marketing and economic development teams better align to maximize the halo effect?
The first step is simple: collaboration. Too often, these teams work in silos, pursuing separate goals and budgets without a shared strategy. A destination marketing campaign that leans into its 24-hour party scene may conflict with an economic development pitch focused on a family-friendly lifestyle. Conversely, an industrial-heavy economic development push may not support a tourism brand built around outdoor recreation.
Here are a few ways destination marketers and economic development teams can break down those silos and start making collaborative magic:
Make sure your teams are on the same page about crucial overarching brand goals that will resonate across tourism, talent recruitment and business development.
Develop a shared messaging framework so all campaigns speak in the same voice, even when targeting different audiences.
Don't be shy—host frequent cross-departmental planning sessions to align on campaign and content calendars, shared priorities and any co-marketing opportunities.
Share and collaborate on assets like video, photography, graphics, digital ads and websites that can serve both tourism and economic development needs.
Create a working group with members from both teams to ensure a continuous line of communication and collaboration.
Unified branding starts with unified leadership. Include executives from both teams in early brand planning sessions and goal-setting discussions, and keep them regularly updated on shared wins, upcoming campaigns and areas for further collaboration.
Ultimately, the wisest, most forward-thinking communities will recognize the power of an integrated approach. By aligning messaging and developing a cohesive brand strategy, you can ensure that destination marketing efforts complement, not contradict, economic development initiatives.
The logistical challenges of coordination are real, but the benefits are even greater. A strong, unified brand will attract visitors, but it can also fuel investment, strengthen community pride and support long-term economic growth. And more often than not, destination marketers are best positioned to lead the way.
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