Increased investment will create jobs, grow the economy and generate new tax revenue
The Tourism Federation of Wisconsin (TFW) last week said a lack of appropriate funding is squandering one of Wisconsin’s most important, natural, job-creating options and called upon state leaders to jumpstart tourism promotion with a $15 million annual investment in the state budget. “A lot of money and attention have been given to companies threatening to leave Wisconsin. Well, a business can always move factory production to another state, but you can’t move the mighty Mississippi or Lake Michigan. We’re missing a huge opportunity to grow our statewide economy,” said Ed Lump, president of the Tourism Federation of Wisconsin. “Tourism generates $12 billion a year for Wisconsin’s economy and creates tens of thousands of jobs, yet our state has allowed tourism promotional efforts to dip to dangerous lows. It just doesn’t make sense.”
“We have a lot to promote. But when you’re armed with a whistle, and others have a bullhorn, it’s hard to get your message out,” added Lump. “Tourism draws people to Wisconsin from nearly everywhere, and that translates into jobs. But our state’s current tourism promotional budget of less than $13 million pales in comparison to other states, and we are now losing economic development and job growth opportunities as travelers go elsewhere.”
Lump cited Wisconsin’s natural beauty, four seasons of recreational opportunities, world-class attractions, resorts, restaurants, state-of-theart meeting and convention facilities, sports tournaments and more as ongoing tourism draws.
TFW, a coalition of mostly small businesses actively involved in Wisconsin’s tourism industry, detailed the industry’s concerns in a position paper released today. According to the TFW document: Last year, Michigan doubled its tourism promotion funding to $30 million, generating $250 million in new economic activity that yielded a $2.23 return for every dollar invested.
Michigan’s effort also generated more than $17.5 million in new state tax revenue and provided a regional return of $5.34 for every dollar spent on tourism.
In 2008, Illinois spent $48 million on tourism promotion; Colorado $23 million; and Pennsylvania $28 million. Earlier this year, New Jersey, facing a situation similar to Wisconsin’s, told its residents that “neighboring states are investing in tourism to a far greater degree for a simple reason, they get results.” “Wisconsin needs to increase its promotional efforts so that our state reaps the economic and job benefits that are slipping by the wayside and going to other states,” said Lump. “Our state currently has a multi-billion dollar revenue gap and high unemployment. Policy makers and a new governor interested in sparking growth and opportunity should look at the economic power of tourism. We need to jumpstart this effort. People have to remember that the Wisconsin Dells won’t relocate to Mexico.”
The TFW’s recommendations include calling on the state’s next governor to put a premium on growing Wisconsin’s tourism industry; establishing a bipartisan goal to set tourism promotional funding at $15 million annually; adopting changes to clarify how room taxes can be spent; and creating an inter-departmental task force of the Department of Tourism, DNR, Department of Commerce, Department of Administration and other agencies to develop policies that support existing tourism businesses.
“Policy initiatives like these can boost local economies, generate new state tax revenues and create new jobs,” said Lump. “We need to invest in our own state and take advantage of what we have. Right now as other states shine bright spotlights on their attributes, we have but a flashlight.”
Lump indicated TFW members are already investing millions of dollars in their own businesses to make them better and more attractive and that TFW wants state leaders to join a partnership to help grow the economy through tourism.
The TFW recommendations and full position paper are available at www.witourismfederation.org. The Tourism Federation of Wisconsin serves as the Wisconsin tourism industry’s unified voice in government relations, cooperatively seeking to improve Wisconsin’s $12 billion tourism industry through supportive legislation and policies. TFW’s members include businesses involved in statewide recreation, resorts, campgrounds, bed and breakfasts, restaurants, hotel and convention centers, convention and visitors bureaus, golf and statewide tourist attractions.
