S.D. Department of Tourism promotes ethanol

February 9, 2007

On behalf of the South Dakota Department of Tourism, Gov. Mike Rounds released the results of a promotion the department ran last summer to encourage tourism and the use of ethanol-blended fuel. The department partnered with the American Coalition for Ethanol (ACE), the Ethanol Promotion and Information Council (EPIC), and the South Dakota Ethanol Producers Association for the "Twenty Bucks for the Road" promotion, in which $20 vouchers were offered to out-of-state residents for the purchase of ethanol-blended fuel in South Dakota.

The department started the promotion to encourage tourism amidst high gas prices. "We had started with the idea that we would do 3,000 vouchers," said Media and Public Relations Manager Wanda Romkema. "There was an overwhelming response within the first few days." After a May 1 press conference, she said requests for vouchers were rolling in at over 200 per hour. The original quota was quickly filled, so the department and the ethanol partners expand the limit to 35,000.

The promotion ran between March 1, 2006, and Aug. 31, 2006. Vouchers were available for redemption starting May 1. Drivers in 15 states were eligible for the promotion, but only 10 states—Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Texas and Wisconsin—had drivers redeem the vouchers. In the end, the office verified and distributed 31,607 vouchers, of which 13,904 were redeemed at retail stations. Romkema said this represents a 44 percent redemption rate. "I think that number alone speaks for how well the promotion was received among consumers," she said.

The department's ethanol partners provided the funds to reimburse vouchers, which totaled $278,080. An analysis of submitted receipts showed that the dollar value of total ethanol-blended fuel purchased was more than $456,000. The promotion was also a boon for the state economy. "We've calculated that the economic impact of the promotion was $12,950,658.34," Romkema said.
Almost 400 fuel retailers registered with ACE to be listed as a participating retailer on the promotion's Web site. In order to participate, they were asked to brand their pumps with a logo sticker provided by EPIC.

After the data was collected, the department spent 90 days analyzing details, such as where the voucher was redeemed, total fuel purchased and distance traveled. The average distance traveled was almost 225 miles.

Romkema said the promotion was held to promote both tourism and ethanol. "I believe consumers got both messages," she said. She couldn't confirm if the department will repeat the promotion but did encourage other ethanol-producing states to work ethanol into its tourism promotions. "It benefited our state, producers and retailers," she said.

The promotion was launched at a time when high gas prices—over $3 per gallon—held national attention. "The innovative nature of the promotion has placed us in the national spotlight," Romkema said. "The national media jumped on the story." She said the department estimates that 27 million people were reached through the national press. Combined with the state's additional advertising, she said that 58 million people heard about the promotion.

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