With tourism booming, Superior and its tourism bureau part ways

After decades handling the tourism business of the city of Superior, Wis., its chamber of commerce withdrew from the role this week.

With shades of a similar situation in Duluth last year, a change in how tourism tax money was allocated led to reduced duties — and cash — on offer to the 139-year-old chamber.

Last year, Superior shifted to a new tourism funding model, where a commission of six mayor- and City Council-appointed members decides where its lodging tax proceeds go. In recent years, money has automatically gone to the Superior-Douglas County Area Chamber of Commerce, administered by its tourism arm, Travel Superior.

The commission then asked for bids to handle promotion of the city, and awarded Duluth ad agency Swim Creative a $250,000 contract over Travel Superior. In July, the city offered Travel Superior $40,000 to continue operating Superior's visitor center inside the Richard I. Bong Heritage Center. It rejected that offer.

"There are significant operational challenges with that amount of change, and that's what drove our decision to say 'no thank you' and walk away from tourism," said chamber President Taylor Pedersen.

Travel Superior had requested about $84,000 to continue operating the visitor center. In existence in some form since 1964, it helped about 1,800 visitors in August.

Mayor Jim Paine said Superior's move to change the funding model wasn't influenced by Duluth's decision to award the bulk of its tourism tax proceeds to an Edina-based marketing firm, with a smaller cut going to Visit Duluth, the previous longtime tourism promoter.

They were focused on telling the story of Superior in other markets and promoting membership rather than the broader business community, Paine said, while he believes tourism is best promoted by making a city "worth visiting."

"I'm a very big believer that if you make a place that's so vibrant, fun and exciting, that those of us who live here enjoy getting out of our houses and experiencing it, then other people will visit it as well," he said.

Lodging tax proceeds that go directly to tourism spending in Superior continue to grow, likely to be around $750,000 in 2022. While large portions have traditionally gone to the Bong center and funding for a local grant, and continue to, Travel Superior had sole discretion on how the rest was spent. In 2021, that was about $400,000.

"Money was increasing so dramatically it no longer felt responsible turning it over to an entity with no public oversight," Paine said.

And some city officials wanted to see money spent in new ways, such as incentives for filmmakers and a tourism coordinator position.

"We've been incredibly accountable for the funds we received," he said.