Lief's Law

Joshua N. Lief



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

 

 

 

 

 

 

 

Profile

Joshua N. Lief is an attorney at Sands Anderson Marks & Miller in Richmond who specializes in Business and Government Affairs. He is a former Deputy and Secretary of Commerce and Trade during the Gilmore Administration. He can be reached by e-mail at jlief@sandsanderson.com