From miles of beautiful gulf coastline to unique shopping and dining, our beautiful city is the perfect place to relax, vacation, and take in a little bit of Texas culture, Cajun style!
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Earlier his week Elizabeth Eddins, our fearless leader, Dean Conwell, and I had the opportunity to be a part of the Texas Travel Industry Association's (TTIA) Unity Dinner and Converge on the Capitol in Austin. There was a record turnout for this event because Texas Tourism's funding is in jeopardy. HB 1/SB1 is proposing an 84% cut to tourism promotion funding. This would take the state of Texas annual tourism budget from $30 million, down to $5 million.
We were one of more than 850 Texas Tourism professionals at the Capital asking legislators not to cut the fund that generates a 7:1 return on investment. Travel and tourism is an economic engine that can help our state's budget deficit.
Here's a rundown of the facts on the economic power of tourism. I felt it would be nice to share these points with our blog readers.
- Texas State Hotel Taxes are collected when someone spends the night in a Texas hotel. Texas has a 6 percent state hotel tax, in addition to local taxes. The primary use of the state's hotel tax (11/12th, or $330 million to be precise) goes to help fund state general services such as public education, health & human services, and another state functions.
- Only 1/12th of the state hotel tax is dedicated by law to promote Texas as a travel destination
- Research shows that for every $1 the state spends to advertise Texas as a tourist destination, more than $7 is returned in state tax revenues, which are used to fund all state programs. Cutting state tourism promotion risks many times that amount in state tax revenues.
With a $7 to $1 ROI, Texas tourism advertising generates tax revenues that fund other state programs. Anumber of other states with larger budget deficits, such as Michigan and Florida, are increasing their tourism promotion funding in order to generate more state tax revenues. Texas must restore full funding for tourism promotion to protect the $7 to $1 ROI and maintain its leadership position in the marketplace.
Did you know that when Colorado eliminated its state tourism promotion funding, it lost 30% in market share? It also fell from America's top summer resort destination to number 17. (Colorado has not been in the top ten since.) In one year alone, this cost Colorado about $2.4 billion in lost tourism revenues and $139 million in tax revenues. It cost Colorado 11 times the amount of tourism promotion funding they had cut. Yikes!
Travel and tourism in Texas is big. There's big times to be had and we sure hope to share it with you. Beaumont loves its visitors, and nothing makes us happier than to welcome "ya'll" for a visit.
It made me one proud to be a part of the large turnout of travel industry folks, including us Beaumonters (or Beaumartians) invading our state's Capitol in order to discuss the important facts with our elected officials.
We hope they support the full funding of Texas tourism promotion because Tourism means business for Texas, and travel matters to Beaumont.
