Governor says this is money well spent

BOISE -- Governor Butch Otter leads a trade mission to Asia Saturday.

It’s an overseas effort to drum up sales for Idaho businesses.

In these tough economic times NewsChannel 7 looked into how much it costs, who pays for it and is it worth it.

Fifteen companies or organizations will travel with the governor to four Asian countries over the course of 12 days. 

The numbers of dollars that go into the trip and could possibly come out of it are much larger. 

"We budget these well ahead of time," said Otter.

Over the last year and a half the governor has led three trade missions to Cuba, China and Mexico.  This trip will hit Hong Kong, Macau, Vietnam and Taiwan. 

Tax dollars will cover the travel, hotel and food costs of the governor and nine state employees.

According to the Commerce and Agriculture departments, the estimated price tag is just over $30,000.

The cost for the trade mission to China last year was more than $46,000.

The trip comes a little more than a week after the governor ordered his department heads to cut their budgets by one percent because of falling tax revenues. 

"Do you think this is taxpayer money well spent to go on this trip?" asked NewsChannel 7.

"Well, yes I do.  One of the dangers that you always run into when you're going to have a holdback or when you're going into more austere times is not to do the things that continue to keep the economy rolling," said Otter.

Now to the trade mission benefits.

- From China, Idaho businesses expect to reap at least $5.8 million.

- The Mexico mission is expected to bring in $2 million.

But so far, the Cuba trip has brought in zero.

A Commerce Department spokesperson says because of the closed environment of Cuba, the primary intent of the mission was to lay the groundwork for the future. 

Otter believes this month's mission is crucial.

"We don't want to lose these customers number one, and with the new companies that we got going we want to build a new customer base," said Otter. 

"To us Asia represents a huge marketing opportunity," said Frank Muir, president of the Idaho Potato Commission. 

The Idaho Potato Commission is one of the 15 companies or organizations making the trip.

Each pays its own way, plus a $3,000 fee to the state to cover mission costs.

Muir believes you have to spend money to make money.

"In the most difficult times is when you've got to stay in front of the consumer.  You can't just back off and assume your product will sell itself," said Muir.

What I've found out is some companies who go on trade missions like this one come home with a deal in hand.

More likely they'll come home with a relationship to build on that could lead to future sales.

Of course there's a third possibility, that some will come back with nothing.