2002 Governor’s Conference on Tourism & Recreation

1. 2002 Governor’s Conference on Tourism & Recreation April 19, 2002

2. Prosperity is Bypassing Montana 0 5 Per Capita Income 10 15 20 25 Montana’s Rank in US 30 35 40 45 50 1953 1963 1973 1993 1983

3. Average Wages --A Ten Year Comparison

4. How Do We Reverse the Trend? Our Framework for Economic Development Provides the Structure

5. Provide World-class Training • Focus on needs of businesses in Montana • Conduct labor skills study – focusing on primary sector needs for the next 5-10 yrs • Develop uniform program accountability measures for a myriad of existing workforce training programs • Improve and align training delivered through 2 yr College system • Improve alternative and/or distance learning programs

6. Improve Support for Businesses • Focus first on existing businesses in Montana • Improve regulatory climate • Focus on measurement • Wendy Keating (DLI) and Scott Darkenwald (DOAd) are leading the effort • Improve delivery of business assistance • Mark Simonich (DOC) is leading the effort

7. Tax Policy • Tax system must be stable and fair • Current system creates disincentive to invest • High stated marginal income tax discourages people from moving to or remaining in the state

8. Improve Access to Capital • Low density/lack of major population center reduces capital availability • Access to capital task force formed • Education • Need to direct funds through private sector • Business assistance and management are critical • Economic viability is most important factor

9. Target State Resources on Business Clusters Clusters are geographically close groups of interconnected companies and associated institutions in a particular field, linked by common technologies and skills.

10. Education Recruitment Workforce Training Cluster-Based Focus of State Economic Development Resources Capital R&D and Tech Transfer Infrastructure Cluster Based Economic Development

11. State’s Role in Cluster Development • Invest in the foundations of science and technology • Sponsor state programs that encourage cluster development • Focus business recruitment around strong clusters • Create regional dimension to state economic development strategies • Improve information systems to regularly collect data and measure progress

12. Market Montana to Businesses • Phase 1 (Now) – Build infrastructure/focus on existing businesses • Support current deal-flow • Phase 2 (April – Oct) – Build Marketing Infrastructure • Complete cluster study to target critical high impact industries • Web site improvements • Prospect handling and performance tracking • Communication • CoreNet Global trade show (site selectors) • Phase 3 (Oct - ) – Targeted Recruiting • Improve local recruiting capacity/coordination • Benchmark Montana to others attracting similar industry • Recruit to support clusters • Target reasonable geographic locations

13. Tourism Dramatically Affects Our Ability to Make Progress • Almost 10% of Montana’s Economy • Brings in Outside Capital • Exposes Millions to Montana • Tourism Marketing is the Face of Montana to Most • Quality of Life

14. What We Learn from the Tourism Industry • Regional Cooperation • Strategic Planning Process • Public / Private Partnership • Marketing Plan and Accountability

15. 2002 Governor’s Conference on Tourism & Recreation April 19, 2002