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Show
Us the Money
The
Virginia Tourism Cooperative Advertising Program
stimulates significant tourism for a modest state
investment. The General Assembly should preserve it.
The
General Assembly will shortly complete its work on the
Commonwealth's budget. Committee Amendments will be
released this week and the budgets will be acted on by
February 6. Then, each house will work on the other's
budget before a joint budget is adopted and presented to
the governor for signature or amendment.
As
this task unwinds, there is one relatively small but
important item that all Virginia taxpayers should hope
is restored: the Virginia Tourism Cooperative
Advertising Program (the Co-op Program). In his
introduced budget, Gov. Mark R. Warner reduced the Co-op
Program by $1.2 million in the current fiscal year and
eliminated the program entirely in fiscal year 03-04. It
is significant that tourism entities, many of whom are
strangers to the intricacies of the budgetary process in
Richmond, have already applied for 03-04 funding from
the program.
The
Co-op Program was created during the administration of
Gov. George Allen, back when the Commonwealth was trying
to lure Disney to build a controversial historical theme
park near Manassas. The incentive package on the table
for Disney made many of Virginia's existing tourism
destinations envious. Understandably, when new industry
is lured here with incentives, the existing industry
says, "What about us?"
Opponents
of the Disney project carried the day. Virginians, I
suppose, couldn't get used to the idea of Mickey Mouse
reenacting the "give me liberty or death"
speech. But the Co-op Program idea survived. Its
mission, according to the enabling legislation, was
"encouraging, stimulating, and supporting the
tourism segment of the economy of the
Commonwealth." Structured as a public-private
partnership, the co-op program would use state funds to
leverage private funds to promote, market and advertise
the state's tourist attractions.
The
way the Coop Program works is simple: A tourism
destination creates a product with multiple partners. It
puts up funding which the state matches to the extent
funding is available. The Co-op Program encourages
cooperative efforts and development of new tourism
product. It has benefited a wide range of tourism
attractions around the Commonwealth: from the well-known
Jamestown/Yorktown/Williamsburg revolutionary fun
package and the Virginia Waterfront International Arts
Festival, to the less-known but equally important Blue
Ridge Highlands tourism and Heart of Appalachia tourism
packages.
Tourism
is big business in the Commonwealth, as can be seen from
the most recently available statistics. In 2001,
traveler spending generated $12.9 billion in revenue,
and tourism was the third largest employer in the
Commonwealth, with over 211,000 people employed in
tourism jobs. That same year, the tourism industry
contributed travel taxes to the Commonwealth of $652
million. On average, travelers spend $35.3 million per
day in the Commonwealth on lodging, meals, gasoline,
shopping, transportation, admissions, and other
services. From its inception, the Co-op Program has been
seen as being a key component in the Commonwealth's
ability to grow its tourism revenues.
Three
Senate budget amendments have sought to restore funds to
the Co-op Program. Sen. Thomas K. Norment, Jr.,
R-Williamsburg, restores $4.4. million in FY03-04; Sen.
Kenneth W. Stolle, R-Virginia Beach, restores $800,000
in the current fiscal year. And Sen. William C. Wampler,
Jr., R-Bristol, restores $3.5 million in FY03-04. In the
House, delegates Robert F. McDonnell, R-Virginia Beach,
and Stephen R. Landes, R-Weyers Cave, jointly restore
$4.5 million in FY03-04.
The
money committees will have acted on those amendments as
of today, but the budgets will be on the floor of each
house this week. If the committees re-funded the Co-op
Program, we should hope it survives the floor votes,
conference and Governor's amendment process. If not, let
us hope that the Co-op Program is restored on the floor
of the General Assembly or by the Governor.
Boosting
tourism has been, and continues to be a central theme of
Virginia's economic development program in the
Commonwealth. Governor Warner has recognized the
importance of tourism, and made it one of the goals of
his recently released economic development strategic
plan. The General Assembly needs to preserve this
effective, public-private partnership. The tourism
industry could use this modest shot in the arm.
--
February 3, 2003
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