A tourism campaign involving free flight vouchers is hitting some turbulence in Tennessee. On Monday, Tennessee Governor Bill Lee announced a plan to give away 10,000 vouchers for airline travel to Tennessee when booked in conjunction with a hotel stay in the state. It is a tidy bit of business for airlines that fly into the state, but critics say the scheme is misguided.
Governor Bill Lee gives Tennessee tourism a boost
Tennessee’s tourism and hospitality sectors have been hit hard by the travel downturn. Visitors to Tennessee spent US$23 billion in 2019, supporting 195,000 jobs. Last year, visitor numbers nearly halved. Nashville alone lost approximately $4 billion in visitor spending.
In March 2020, aircraft movements through Tennessee’s largest airport, Nashville International (BNA) dived. By early May 2020, aircraft movements were around 72% on the previous May. While aircraft movement numbers did begin to improve, they remained 20% – 30% under comparable 2019 levels for the remainder of 2020.
In mid-2021, Tennessee continues to experience the hangover effect of the downturn. Bill Lee’s idea is to give away 10,000 $250 flight vouchers in a stimulus campaign worth $2.5 billion.
“The state’s buying all these airline tickets and giving them away to anybody who books two nights in a hotel room to come to Tennessee, so it’s ‘Tennessee on me,'” Lee said in a video posted to social media.
Tennessee is known around the world for its music, scenic beauty & iconic attractions, and I'm excited to team up with @BradPaisley to promote @TNVacation. 10k airline vouchers are up for grabs when travelers book a trip to Tennessee. Learn more at https://t.co/gTUps7pffx. https://t.co/Gfdw5dG8tT
— Gov. Bill Lee (@GovBillLee) July 4, 2021
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A welcome bit of business for three US airlines
American Airlines, Delta Air Lines, and Southwest Airlines are the participating airlines. Travelers eyeing a $250 voucher need to book and pay for a minimum of two nights in one of 60 participating hotels in Tennessee. Flights must land in Chattanooga (CHA), Knoxville (TYS), Memphis (MEM), or Nashville (BNA). Eligible travel dates are July 11 to December 30, 2021. Bookings must be made via Tennessee’s Visit Music City website.
At BNA, May 2021 saw the airport handle 19,029 aircraft movements and 1,388,451 passengers, significantly up on the 7,509 aircraft movements and 201,656 passengers in May 2020. Southwest Airlines swamps both American and Delta in terms of nonstop flights to Nashville, offering around four times the number of nonstop routes into BNA than the two full-service airlines.
It is a more even playing field at Memphis International Airport. In May 2021, American Airlines flew 74,558 passengers to or from MEM. Delta Air Lines flew 71,312 passengers to or from the airport, and Southwest Airlines flew 75,425 passengers to or from Memphis. Southwest’s footprint, in particular, is far smaller at Memphis than Nashville.
Bill Lee’s voucher scheme has both detractors and supporters
Governor Lee’s voucher scheme isn’t unusual. Multiple jurisdictions worldwide have offered free or subsidized flights to boost spending in certain sectors of the economy. The voucher schemes aren’t perfect – there is always some leakage and abuse. However, they generally do a good job of boosting visitor traffic (and spending) in targeted areas.
That hasn’t stopped critics of Bill Lee’s Tennessee On Me campaign from speaking out.
“This is not the governor’s money. This is taxpayers’ money,” says Tennessee State Senator Bo Watson.
“It is especially troubling that the promotion is limited to our major cities,” said Lieutenant Governor Randy McNally. “Our rural areas were hit as hard, if not harder, by the economic crisis than those cities.”
But Bill Lee also has supporters of his stimulus package. Tennessee’s Tourism Office spokesperson told local media the initiative was a collaborative effort, with Tennessee’s cities continuing to feel the pain from lost convention, business, and international travelers.
While Tennessee’s politicians squabble over the merits of the stimulus package, Delta, American, and Southwest will happily bank Bill Lee’s checks. Tennessee’s hotels, restaurants, and bars will also appreciate the extra business.
Are you a fan of these kinds of stimulus packages? Would you fly to Tennessee in exchange for a $250 flight voucher? Post a comment and let us know.
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