Retail

Washington state slashes tourism development spending

By Seattle Business Magazine June 27, 2011

Washington state, long touted
to the American public as a scenic travel destination, will shortly
eliminate its state-sponsored tourism-development spending. The move
comes amid a
wave of state budget cutsmany of them to public services
spendingin an attempt to remedy the $5 billion shortfall in the
2011-2013
biennium. While the estimated $2 to $4 million in spending saved is a
small piece of that shortfall, the consequences of both public
and private tourism spending in the state have been significant: revenue
generated by travelers to Washington totaled an estimated $15.2 billion in
2010.

While lawmakers have cited the importance of
education and social services spending over tourism development spending, a 2010 Travel Impacts Report cites 2010 as the second-best
year for visitor spending in the state. Travelers spending increased by 3.3
percent over 2009 in Washington, compared to 3.5 percent for the nation. (Numbers are adjusted
for inflation.)

Washington
is not the first state to eliminate its tourism budget in the face of the
recession. Connecticut
did so in the last biennium, slashing its state-supported tourism funds almost
completely, though the state is proposing to restore $15 million to its tourism
program this budget cycle.

California
uses a public-private partnership scheme which forces the private players in
the tourism industry to shoulder most of the spending burden.

Meanwile,
the tourism industry in Washington has created the Washington Tourism
Alliance to see if the private sector is able to pick up the slack.

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