Strategic Texas Marketing Plan Economic Development & Tourism

Strategic
Texas Marketing Plan
Economic Development & Tourism

FY 2010

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TABLE OF CONTENTS

LETTER FROM THE EXECUTIVE DIRECTOR ..................................................................... I
MISSION ...................................................................................................................... 1
OBJECTIVE .................................................................................................................. 1
DIVISION OVERVIEW .................................................................................................... 1
TRUSTEE PROGRAMS .................................................................................................... 3
DOMESTIC MARKET OVERVIEW ..................................................................................... 4
INTERNATIONAL MARKET OVERVIEW ............................................................................ 4
BUSINESS DEVELOPMENT MARKETING PLAN .................................................................. 5
BUSINESS DEVELOPMENT MARKETING ACTIVITIES ........................................................ 7
FY 2010 MARKETING ACTIVITY CALENDAR .................................................................. 12

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September 1, 2009

My Fel ow Economic Developers and Tourism Partners:

In an unpredictable economy, Texas continues to be the global leader in economic development and tourism. Our
accomplishments did not go unnoticed. The Lone Star State was ranked, for the second time, as the number one state
with the most corporate headquarters on the Fortune 500 list and was named the "2009 Best Business Climate" by
Business Facilities Magazine.

Texas continues to see growth in population, indicating that people are continuing to flock to our state for its vibrant
economy and low cost of living. According to the 41st Annual Magnet States report by Al ied Van Lines, Texas topped
the list for fourth year in a row as the No. 1 relocation destination in the U.S.

In FY 2009, we redesigned the Texas Wide Open for Business and the TexasOneSM Program web sites. The Texas Wide
Open for Business web site has many new features to ease navigation including Texas regional maps, industry
publications and financial resources. The TexasOneSM Program web site’s new features include a member login, an
event calendar with event details, access to mission summaries and TexasOneSM annual reports.

The second year of the Tourism advertising campaign has continued to generate interest in traveling to Texas after a
successful launch in 2008. The 2009 campaign, to date, has generated more than 4 mil ion inquiries for travel
information. The mobile marketing exhibit Texas On Tour has also continued to draw enthusiastic crowds at festivals
and events throughout the United States and encourage them to visit Texas. The Texas tourism industry supports an
estimated 544,400 jobs in the state with direct travel spending of roughly $60.6 bil ion in 2008.

Our business recruitment missions have been successful and have opened doors to new business prospects. In
December 2008, Governor Perry announced the creation of Caterpil ar’s worldwide assembly, test and paint operations
in Seguin, which is expected to create more than 1,400 new jobs and bring nearly $170 mil ion in capital investment.
Texas continues to be touted as the best state for business by CEOs and we are proud to be ranked the No. 1 state for
business and job growth for the fourth year in a row by Chief Executive Magazine.

This marketing plan for the new fiscal year serves as a roadmap and wil further pave the way for continued success for
Texas’ business climate.

The marketing plan wil be available exclusively online at www.texasone.us

Sincerely,

Aaron Demerson
Executive Director

P . O . B O X 1 2 4 2 8 | A U S T I N , T X 7 8 7 1 1 | 5 1 2 - 4 6 3 - 2 0 0 0 | W W W . G O V E R N O R . S T A T E . T X . U S

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Mission

The Economic Development and Tourism division of the Governor’s Office markets Texas global y as
the premier business location and travel destination. We develop strategies to generate leads and
inquiries which over time can be developed into business recruitment prospects, export opportunities
and tourism – thereby creating jobs and wealth for Texans.

The Tourism program continues to pursue an activity-based marketing strategy that focuses on
promoting the many diverse vacation activities and experiences Texas offers to out-of-state travelers.
Texas Business Development continues to tel the world that Texas is truly “Wide Open for Business”
by promoting our favorable business climate, reasonable regulatory environment and skil ed workforce.

Objective

The primary focus of our marketing strategy is lead generation and awareness building. The Economic
Development & Tourism Division has generated a number of successes this past year, including Texas
being ranked No. 1 for the number of firms on the 2009 FORTUNE 500 and 1,000 list. The most recent
data shows that Texas remains one of the most frequently visited states in the nation. Tourism
continued to set records for consumer inquiries with award-winning campaigns and innovative online
tools on TravelTex.com.
Division Overview

The Office of the Governor, Economic Development & Tourism division consists of four programs.
These programs include Texas Business Development, Texas Tourism, The Office of Aerospace and
Aviation, and Economic Development Bank.
Business Development is charged with domestic and international business recruitment and
corporate expansion efforts for the state by marketing Texas as a premiere business location utilizing
the “Texas Wide Open for Business” campaign.
Domestic Expansion and Recruitment serves as the primary point of contact for
companies looking to expand existing operations in Texas or relocate a business from out
of state. This section has achieved great success, working on national y and international y
recognized projects in FY 2009, such as the ground breaking of Caterpil ar in Seguin,
which announced the creation of 1,000 new jobs and a $169.7 mil ion capital investment;
and Medtronic Inc. which announced 1,400 jobs and a $23 mil ion capital investment.
International Business and Recruitment continues to assist Texas companies seeking to
expand into foreign markets and encourage foreign investment in Texas.
Business Research provides support with economic and demographic data, analyses and
information on industries and communities. The extensive databases and research tools
provide accurate and timely information on doing business in Texas – strengthening the
state’s ability to recruit and attract business.
Texas Tourism promotes Texas domestical y and international y as a premier tourist destination to
generate tourism revenues and jobs for Texas communities. Texas Tourism consists of Advertising,
Public Relations and Travel Research sections.
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Advertising oversees the award winning ad campaigns promoting Texas as the premier
travel destination through national and international advertising. This includes consumer
and trade publications, national cable television, radio, newspaper, the Internet and the
TravelTex.com web site.
Public Relations works with the travel trade industry and media throughout the United
States and top international markets including Mexico, Canada, the United Kingdom,
Germany, Asia, Latin America and France.
Travel Research provides and analyzes information about domestic and international
travel trends. Travel research also provides tourism outreach services to assist Texas
communities with their economic development tourism.
For a detailed look at the FY 2010 Texas Tourism Marketing Plan, please visit www.travel.state.tx.us.
The Office of Aerospace, Aviation & Defense focuses on maintaining Texas’ leadership position by
developing business strategies to promote the retention, development and expansion of aerospace,
aviation and defense in Texas. From the earliest bi-planes to high-tech vehicles capable of landing on
the moon, al types of aircraft have been and continue to be manufactured in Texas. The office works
closely with decision makers in the industry, other governmental agencies and academic institutions to
build a business environment that’s second to none. In addition, the office also provides support to
state and local spaceport authorities and helps promote the spaceports in Texas.

The Texas Bank For Economic Development
The mission of the Texas Bank For Economic Development is to provide incentives to businesses here
in Texas as wel as those wishing to relocate or expand in Texas, in addition the bank assists local
communities in accessing capital for economic development. The Bank activities are included as part of
the Texas Business Development marketing plan and include the Finance programs, Enterprise
programs, and Business Assistance.
Finance programs are targeted for businesses with securable assets and communities seeking
economic development growth. The State of Texas promotes the funding of business
initiatives by minimizing the risk a lending institution must assume on a loan, encouraging
businesses and communities to pursue expansion, creating additional employment
opportunities, and promoting economic diversity and vitality.

These programs include:


Texas Product/Business Funds

Texas Leverage Fund Program

Texas Industry Development Loan Program

Industrial Revenue Bond Program

Enterprise Programs are targeted for economic revitalization. By working closely with local
economic development professionals, the Bank uses a comprehensive approach to match
businesses with the appropriate state, federal, and local incentives. These programs support
job creation and retention and capital investment efforts at the local level and include:


Texas Enterprise Zone Program

Defense Economic Readjustment Zone Program

Federal Empowerment Zone/Enterprise Community and Renewal Community
Program
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Marketing Efforts tailored specifical y for the Bank constituents include a quarterly newsletter
and a bank program brochure. These items work in conjunction with the existing general
marketing materials for Economic Development. The Bank continues to increase interest in its
programs with more than 5,709 contacts in FY 2009 through regular business and marketing
activities.

The Small Business Assistance Program’s mission is to establish the State of Texas as the
place to start and grow smal businesses, by identifying and isolating legal and financial barriers
for smal , medium, and historical y underutilized businesses (HUB’s), assisting smal and medium
enterprises with expansion programs, policies and directives, and developing strategies and
outlooks for Smal Business Development throughout the Great State of Texas. The Smal
Business Assistance team handles a number of activities and initiatives, including the Genuine
Texas Initiative and Smal Business Expos such as Contracting, Financing and Exporting.

The Genuine Texas Initiative is a unique branding program that promotes Texas manufacturing.
The program, under the direction of the Genuine Texas Initiative Advisory Board, is designed to
provide a unified branding program that promotes manufactured products originating in the Lone
Star State. The program wil establish product quality standards for Texas manufacturers, and
develop a campaign to provide a competitive edge for the Texas manufacturing industry by
creating a logo for Texas-made goods for consumers to identify. Texas’ manufacturing sector is a
strong contributor to the state's economy and the branding program wil keep the state
competitive against overseas manufacturing.

In FY2010 the Smal Business Assistance Program, in col aboration with the Texas Workforce
Commission, wil host or participate in a number of events throughout the State of Texas:


Small Business Contracting Expo

Small Business Financing Expo

Small Business Exporting Expo

Small Business Recognition Reception

Texas Department of Transportation (TxDOT) Infrastructure Procurement Forum

Texas Military Preparedness Commission became a part of EDT as of September 1, 2009.
Established in 2003 by the 78th Legislature, the Texas Military Preparedness Commission’s
(TMPC) mission is to preserve, promote and advance the military within the State of Texas while
protecting vital military instal ations within its borders and to encourage defense related
businesses to expand or relocate to Texas.
TMPC also assists communities that have been impacted by the Base Realignment and Closure
(BRAC) process in creating employment opportunities or retaining skil ed defense workers. TMPC
oversees the two programs: the Defense Economic Adjustment Assistant Grant and the Texas
Military Value Revolving Loan Fund.

The Defense Economic Adjustment Assistant Grant (DEAAG) is a job creation and retention grant
program designed to assist adversely and positively impacted defense communities responding to
a Base Realignment and Closure (BRAC) action, or reductions or termination of defense contracts.

The Texas Military Value Revolving Loan Fund (TMVRLF) is designed to assist defense
communities in enhancing the value of a military facility in their area, affected by a defense base
realignment or closure decision that occurred in 2005 or later, by providing financial assistance for
job creating economic development projects or assistance for infrastructure projects.

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Trustee Programs

Texas Enterprise Fund (TEF)
The Texas Enterprise Fund, a trusteed program within the Bank and the largest “deal-closing” fund of
its kind in the nation, continues to attract businesses and jobs to Texas. The fund has awarded more
than $383 mil ion with a total capital investment of over $14 bil ion and has secured more than 55, 500
new jobs as of August 2009.

Emerging Technology Fund (ETF)
The Texas Emerging Technology Fund (ETF) was created in 2005, and has awarded more than $234
mil ion in grants to date helping Texas create jobs and grow the economy over the long-term by:

Expediting the development and commercialization of new technologies
Attracting and creating jobs in technology fields that wil form the backbone of our economy

The program works through partnerships between the state’s institutions of higher education and
private industry to focus greater attention on the research, development and commercialization of
emerging technology through the fol owing three areas:

Maintaining at least six Regional Centers of Innovation and Commercialization (RCIC) throughout
the state.
Matching grant funds for technology research and development projects that accelerate
commercialization into production and have a demonstrated ability to receive federal grants.
Attract highly renowned research talent from universities and institutions in other states.

Domestic Market Overview
The U.S. market is undoubtedly the largest source of out-of-state travelers and of business relocation
opportunities. For a ful look at the Tourism marketing activities, please visit www.travel.state.tx.us.

Overal , the Texas economy continues to grow at nearly three times the national average. From
December 2007 to December 2008, Texas accounted for 80 percent of entire job gains in the nine
states with increased employment. Unemployment rates in Texas have remained consistently below
the national average. In December 2008, Governor Perry announced the creation of Caterpil ar’s
worldwide assembly, test & paint operations in Seguin, which is expected to create more than 1,400
new jobs and bring nearly $170 mil ion in capital investment. Texas continues to be touted as the best
state for business and was proud to be ranked the No. 1 state for business and job growth for the
fourth year in a row by CEOs in Chief Executive Magazine in March 2009.

Overal , the consensus among economists is that Texas wil continue to enjoy economic growth
that exceeds the U.S. average throughout FY10. This growth wil be the foundation of the “Texas Wide
Open for Business” TM message.

International Market Overview
Our activities in international markets are expanding with more international business efforts than ever
before. Texas has ranked as the No. 1 U.S. exporting state for seven straight years. In 2008, Texas
exports were valued at $192 bil ion, up 14 percent from the previous year.

Foreign Direct Investment
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Texas is a top-ranked global destination for foreign direct investment. If Texas were a nation, it would
be ranked 12th in the world based on the 2008 Gross Domestic Product (GDP) of $1.18 tril ion, ahead
of the countries India, South Korea and Mexico.

Texas’ largest export markets continue to be Mexico and Canada, our NAFTA trading partners, which
accounted for 42 percent of total state exports. The state wil continue its efforts to attract foreign
direct investment as one of the state’s major economic objectives.

In 2007, Texas ranked third national y for the number of “insourcing” jobs, according to the
Organization for International Investment, with 368,200 Texans employed by foreign-owned
companies. Foreign investment in Texas was responsible for 4% of the state’s total private-industry
employment. More than 25% - or 92,500 jobs - were in manufacturing, while almost 10 % of al Texas
manufacturing jobs are “insourcing”.

International markets offer the largest potential for growth for inbound tourists and within certain
industry sectors for relocation and exporting opportunities of Texas products. A few of our largest
international trading partners and tourism markets include:

Mexico is the No. 1 trading partner for Texas with $62 bil ion in exports in 2008. Texas’ geographic
and cultural ties to Mexico are the foundation of its prosperous relationship. Mexico is the largest
international market for travelers to Texas with an estimated 7.3 mil ion visitors in 2007 and about $1.6
bil ion in visitor spending. Texas has a long-standing partnership with Mexico, particularly with the
bordering Mexican states of Tamaulipas, Coahuila, Chihuahua and Nuevo Leon. Texas has the longest
shared border with Mexico among the neighboring states and Laredo, Texas is the nation’s busiest land
port. The state has maintained an office in Mexico City (the State of Texas-NAFTA Office) for
approximately 30 years.

Canada is the No. 2 trading partner for Texas with $19.2 bil ion in exports in 2008. Canada is also the
second largest international market for Texas with an estimated 385,000 visitors in 2007 creating an
economic impact of roughly $325 mil ion.

Europe is the largest overseas inbound tourism market for Texas with an estimated 473,000 visitors
and an economic impact of $469 mil ion in 2008. Primary markets within the region include the United
Kingdom (191,000 visitors), Germany (77,000 visitors) and France (29,000 visitors).

Europe is home to some of the largest trading partners for Texas exports in 2008 including: the
Netherlands (4) with $7.1 bil ion, Belgium (10) with $3.6 bil ion, the United Kingdom (11) with $3.5
bil ion, Germany (14) with $2.9 bil ion and France (16) with $2.4 bil ion.

Asia is the second largest overseas inbound tourism market for Texas with an estimated 266,000
travelers and an economic impact of $298 mil ion in 2008. Primary markets within the region include
China (52,000 visitors) and Japan (49,000 visitors). Emerging secondary markets like India (89,000
visitors) and South Korea (32,000 visitors) have posted impressive gains over the past year.

Asia is home to some of the top trading partners for Texas exports in 2008, including: China -mainland
(3) with $8.4 bil ion, Singapore (6) with $5.5 bil ion, the Republic of Korea (7) with $5.2 bil ion, Taiwan
(8) with $3.9 bil ion and Japan (9) with $3.6 bil ion. Other Asian trading partners for Texas include
India (19) with $1.9 bil ion and Malaysia (20) with $1.8 bil ion.

South America is the third largest overseas inbound tourism market for Texas with an estimated
135,000 travelers and an economic impact of $140 mil ion in 2008. Brazil (38,000 visitors) is the
primary market in the region although many emerging secondary markets like Venezuela (48,000
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visitors) experienced impressive growth in 2008. South America is also home to some of the fastest
growing trading partners for Texas exports in 2008 including: Brazil (6) with $6.0 bil ion, Venezuela (12)
with $3.5 bil ion, Colombia (13) with $3.0 bil ion and Chile (15) with $2.7 bil ion.

FY 2010 Texas Business Development Marketing Plan
In 2003 Governor Rick Perry launched the Texas One program as a part of the 501c3 Texas Economic
Development Corporation (“TEDC”). The TEDC consist of a statewide board of directors appointed by
Governor Perry.
TexasOneSM represents the primary fundraising program under TEDC. Funds are raised to al ow the
Economic Development and Tourism Division the opportunity to promote the various assets that Texas
has to offer to site consultants and companies making business expansion and relocation decisions.
TexasOneSM has directly enabled strategic economic development outreach which has created a surge
of national and international awareness of economic development initiatives and opportunities in
Texas.

Key Message
Through marketing activities and our Texas economic development partners, we wil continue to send
the message to the world that Texas is “Wide Open for Business.”


Strategy
To market and promote Texas as a premier location for business domestical y and international y
through a variety of marketing activities including trade shows, trade missions, marketing missions,
signature events, advertising, public relations and other promotional activities.

Target Markets
Corporate site selectors and relocation consultants continue to be the primary market for the “Texas
Wide Open for BusinessTM” message. These professionals assist companies with their site location
decisions. They represent a variety of clients and are responsible for compiling information from
different locations and making initial cuts in the selection pool. Industry al ies for this target include our
community partners, organizations such as Team Texas and Texas-based site selection companies.
Corporate decision makers (CEOs, CFOs, COOs) and business media are also highly targeted for our
message.

Al marketing initiatives are focused on the state’s defined industry clusters. These sectors were
identified in 2004 through the Governor’s Industry Cluster Initiative -- a long-term strategic job creation
plan that maximizes the state’s resources. (Click here to view the Governor’s press release).

Advanced Technology & Manufacturing
The Advanced Technology & Manufacturing cluster encompasses three industries:
nanotechnology, semiconductors and automotive manufacturing. Known as the birthplace of
nanotechnology, Texas is a global leader in nanotechnology research and development and is
national y ranked for nanotech-related venture capital and commercialization.

Aerospace, Aviation & Defense
From the earliest bi-planes to high-tech vehicles capable of landing on the moon, al types of
aircraft have been manufactured in Texas. Major commercial airlines were born in the Lone
Star State and some of the world’s most advanced military aircraft are designed and built in
Texas.

Biotechnology & Life Sciences
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The Biotechnology and Life Sciences marketplace in Texas is vibrant and growing. Texas ranks
in the top 10 national y for the number of traditional biotechnology companies located in-state.

Energy
The Energy cluster is made up of three industries: Oil and Gas Exploration and Production;
Power Generation; and Renewable and Sustainable Energy Generation. Texas leads the nation
in production and reserves for crude oil and natural gas and boasts one of the most robust,
wel -functioning electric markets in the world. Better known for its oil wel s than its wind
turbines, the Lone Star State currently leads the nation in renewable energy potential and in
wind energy production.

Information and Computer Technology
Information and Computer Technology encompasses industry segments including computers,
software, telecommunications, and IT services. Strength in these industries has led Texas to
be ranked second in the nation for number of high-tech workers and businesses.

Petroleum Refining and Chemical Products
The Petroleum Refining and Chemical Products cluster is responsible for more than $82 bil ion
in gross state product and more than 800,000 total jobs. Texas is the nation’s largest
chemicals producer, manufacturing 14 percent of the nation’s value of chemical output.

FY 2010 Texas Business Development Marketing Activities
In FY 2009, Texas brought the “Texas Wide Open for BusinessTM” brand to new levels of awareness
through a drastical y redesigned and highly focused website including interactive maps, a Texas
business data library and social media tracking on Twitter.
Innovative and creative marketing for business missions and signature events have also increased the
frequency at which our target markets are receiving our message. Texas Wide Open for BusinessTM
has become the foundation of the brand that is visible on al economic development communication. It
has become highly recognizable to the target audience of economic developers and site selectors.
Since 2004, 31 percent of al jobs announced through Office of the Governor, Economic Development
and Tourism were driven by TexasOneSM activities. The relationships created by our highly targeted
campaigns and recruitment activities continue to build momentum.
In FY 2010, our goal is to build on our tremendous momentum and highlight the successes of the
Texas economy and business climate compared to the nationwide recession. We wil continue to
effectively target businesses, site selectors and key media influencers through direct marketing,
targeted media and information drops, unique business missions, signature events and business
forums.
Business Recruitment and Trade Missions
In FY 2009, EDT conducted domestic missions to Georgia, Massachusetts, New York and
international business and trade missions to Brazil, Canada, Chile, France, Germany, London,
Mexico, Portugal and Spain. These missions marketed the state on a one-on-one basis
through meetings with company executives, site selectors and media representatives in
determined geographic areas. TexasOneSM members and Texas communities participated in
each mission.

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