Rising water raises all ships: The imperative of regional collaboration
As I travel across America’s heartland, working with communities fighting to maintain their vitality and relevance, one obstacle consistently emerges: the prohibitive cost of meaningful transformation. Small towns struggling in isolation face a triple threat—limited funds, scarce expertise, and insufficient human capital to drive change. According to recent economic studies, 43% of communities with populations under 25,000 lack the financial resources needed for effective marketing campaigns, while 68% experience persistent retail leakage to metropolitan areas.
This financial reality forces many communities to abandon ambitious revitalization plans or settle for cosmetic improvements that fail to address underlying economic challenges. However, this need not be the case. The solution lies in regional collaboration—a strategy backed by compelling data showing collaborative marketing efforts generate 3.7 times the return on investment compared to isolated initiatives.
Consider the economic ecology of small-town America. Just as natural competitors in the business world strategically co-locate—Burger King builds beside McDonald’s, CVS positions near Walgreens—small communities can benefit from proximity while maintaining distinct identities. These corporate rivals understand a fundamental truth: increased customer traffic benefits everyone, even competitors. National chains allocate approximately 18% of their operating budgets to driving customer traffic to shared locations, recognizing that proximity creates synergy rather than cannibalization.
This principle applies perfectly to regional tourism and economic development. Communities within a 50-mile radius typically share similar visitor demographics. Research from the U.S. Travel Association indicates that 76% of domestic travelers journey within a two-hour radius of their homes for day trips and weekend getaways. Rather than competing for this finite audience, small communities can collectively expand the visitor pie.
The evidence supporting regional collaboration is substantial. Communities participating in regional tourism initiatives experience 23% higher visitor spending than standalone destinations. Collective marketing efforts reduce per-community costs by 35% while increasing media reach by 41%. Shared digital platforms enable five times the data collection capabilities at one-third the cost. Regional branding creates stronger market recognition, with recall rates 27% higher than individual community marketing
While larger markets benefit from well-funded Chambers of Commerce, substantial advertising budgets, and dedicated economic development staff, smaller communities must be creative with limited resources. A mid-sized city typically allocates $3-4 million annually for economic development and tourism promotion, while small towns often struggle with budgets under $50,000. This disparity results in approximately $1.2 million in annual economic leakage from each small community to nearby urban centers.
The practical applications of collaboration are numerous. Consider creating a regional print and digital magazine that promotes the entire area, distributed strategically throughout surrounding regions. This approach increases the potential advertiser base, making the publication financially sustainable while building a valuable regional database. The initial investment—approximately of $10,000 becomes manageable when divided among multiple communities.
Digital collaboration offers even greater potential. Modern marketing tools allow communities to implement sophisticated strategies at low cost. A coordinated regional approach to website development, social media management, email marketing, and SEO creates economies of scale unattainable for individual small towns. Research shows that shared digital marketing initiatives cost 43% less per community while generating 58% more engagement than isolated efforts.
Event coordination represents another collaborative opportunity. When communities stagger their festival schedules and cross-promote each other’s events, visitor stays extend by an average of 1.3 days, increasing lodging revenues by 22% and food/retail spending by 37%. Rather than competing for the same weekend visitors, communities create complementary experiences that benefit the entire region.
Make no mistake—help from external sources is unlikely. Economic pressures affect communities of all sizes, and larger markets rarely have incentive to support their smaller neighbors except to extract dollars from them. Federal assistance for small-town revitalization decreased by 18% in real terms over the past decade. The pandemic brutally illustrated this reality when national chains remained open while small businesses faced mandatory closures, resulting in the permanent loss of approximately 200,000 small businesses nationwide.
Small communities must recognize that their neighbors represent their most logical allies. By pooling resources, sharing expertise, and coordinating efforts, regions can create economic momentum that benefits every participant. The data is clear: collaborative communities experience median business revenue growth 2.3 times higher than isolated towns.
When water rises in the harbor, ships of all sizes rise together. Similarly, when regional cooperation increases visitor traffic and spending, businesses throughout the area benefit. This isn’t merely a poetic metaphor—its economic reality supported by data. The communities that understand and implement this collaborative approach will navigate the challenging waters ahead, while those clinging to isolation may find themselves stranded as the economic tide recedes.
The time for regional collaboration isn’t coming—it’s here. The only question is whether your community will help lead the rising tide or be left behind.
John A. Newby is the author of the “Building Main Street, Not Wall Street” column dedicated to helping local communities, government and business combine synergies allowing them to thrive in a world where truly-local is being lost to Amazon and Wall Street chains. His email is john@truly-local.org