The state budget is being negotiated right now and your legislator is in a position to make important decisions regarding the future of tourism in Ohio.
We are not opposed to investigating a change from state-funded travel and tourism marketing to a public-private partnership model. We caution, however, there is much that can be lost without a thoughtful transition that can guarantee continued success.
The proposed structure is not a public-private partnership if the public brings nothing to the table. Leaving the Ohio Tourism Division with $400,000 and no marketing budget would have an almost immediate negative impact on the State’s hospitality industry at a time when convention and visitors bureaus are already facing the challenges of declining business travel and more conservative leisure tourism. From the rural charms of Amish Country and wine trails to the museums and eateries of urban centers, Ohio’s hospitality industry is a revenue generator.
We need to learn from the missteps of others. In 1993, Colorado eliminated its $12 million tourism promotion budget. (In comparison, today Ohio’s budget is $6.8 million.) Even with its natural lure of skiing and other tourism adventures, Colorado’s domestic market share plunged quickly and dramatically, falling 30% in just two years. Over time, the revenue loss increased to well over $2 billion annually. Clearly, Ohio is in a position to lose its niche markets and the revenue that comes with them if promotional funding is discontinued.
Should there be a gap in marketing Ohio, the State could lose much of the $1.6 billion in direct state taxes that tourism generates each year, while local governments would inevitably struggle with a dip in the $1.1 billion per year visitor spending brings them in tax revenue. Any significant decline in visitor numbers would inevitably cost a State in crisis even more jobs. The hospitality industry directly employs the equivalent of more than 452,000 full-time positions. The decision to effectively decommission the Ohio Tourism Division will have a negative impact on every destination in the state.
Representing travel and tourism in Ohio’s major urban centers, the Akron/Summit Convention & Visitors Bureau, Dayton-Montgomery County Convention & Visitors Bureau, Destination Toledo, Experience Columbus, Positively Cleveland and Cincinnati USA do hereby express support for the Ohio Tourism Roundtable’s assertions below. We urge concerned parties and our hospitality partners to contact as many of these representatives as you can as soon as you can, preferably by noon on Wedneday, June 24, 2009.
Cutting the budget for the Ohio Tourism Division will only cost Ohio money, not save it. A public-private partnership must be carefully designed and adequately funded from the start in order to be successful.
Sincerely,
Susan Hamo, Akron/Summit Convention & Visitors Bureau
Jacquie Powell, Dayton-Montgomery County Convention & Visitors Bureau
Dave Nolan, Destination Toledo
Paul Astleford, Experience Columbus
Dennis Roche, Positively Cleveland
Dan Lincoln, Cincinnati USA
Ohio Tourism Roundtable
Ohio Travel Association / Ohio Hotel & Lodging Association / Ohio Association of Convention & Visitor Bureaus / Ohio Restaurant Association
- Visitors spend roughly $38 billion annually in Ohio.
- Visitor spending results in $1.5 billion in direct state taxes each year.
- Similarly, local governments receive $1.1 billion per year in tax revenue from visitor spending.
Visitor spending sustains jobs in Ohio
- The tourism industry currently employs 454,000 direct full-time job equivalents in Ohio.
- Ohio’s tourism industry provides nearly $10.4 billion in direct earnings (wages, salaries and proprietor income)
The State’s marketing campaign is a winner
- In the spring of 2008, the Ohio Tourism Division launched a tourism ad campaign that generated an additional $436.9 million in visitor spending from people who would not have otherwise visited Ohio.
- Research shows the campaign resulted in at least $30.9 million in additional tax revenue
- $17.4 million in state taxes
- $13.5 million in local taxes
Tourism is a wise investment
Ohio receives $12 for every dollar it spends on the tourism ad campaign. We feel it is essential to continue this campaign in order to:
- Maintain a positive revenue source from visitor spending.
- Generate additional GRF sales tax revenue for Ohio without increasing taxes.
- Sustain Ohio jobs and prevent increased unemployment.
–Submitted by Dennis Roche, President, Positively Cleveland
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