Issue link: https://digital.copcomm.com/i/319926
All too often we focus our collective attention on tourism at the local level, primarily the convention and visi- tor's bureaus, at the expense of under- standing the significant role a state department of tourism plays in our industry. In most states, these depart- ments are under the executive branch of government and tied into a state's eco- nomic development arm. State tourism department officials are also saddled with the burden of satisfy- ing ambitious legislative leaders who seek support for pet projects managed by tourism departments. Yet we are con- stantly reminded of legislators wanting to cut tourism dollars. Many legislators simply don't understand the financial rewards of travel in tourism to their respective states. Unlike CVBs, state tourism depart- ments receive virtually all of their fund- ing from public sources – revenues gen- erated by travel and tourism fees such as hotel and car rental taxes. How are those funds being spent? Is any of it reaching the Black community? Travel and tourism is a cash cow for state and local governments. According to the U.S. Travel Association, travel gen- erated $129 billion in tax revenue to governments at all levels in 2012 and $58.4 billion to state and local govern- ments. State tourism budgets range from $710,000 annually in Rhode Island to $75 million in Hawaii according to U.S. Travel's 2012-2013 Survey of U.S. State Tourism Budgets. Within those state departments' of tourism operating budgets are tons of discretionary spending options that you might not be aware of. For example, most states spend a significant amount of money courting international travelers. The survey's findings suggest that sig- nificant dollars are being shifted from domestic to international marketing efforts. Just over 31 percent of California's $50 million annual budget targets overseas marketing. As African-American's we should be asking ourselves how many of those dol- lars spent by state tourism departments incorporate our communities through jobs, vendor relationships, or updating and marketing African-American themed museums and attractions. But that's just the funds for state tourism departments. What about the remaining billions that go into a state's general fund? Are those resources reaching the Black community in terms of infrastructure like schools, road repair, police and firefighter resources? Nationwide, one of every nine jobs depends on travel and tourism. Travel is among the top 10 industries in 49 states and the District of Columbia. It's the eco- nomic engine that drives sever- al jurisdictions. It's easy to tax visitors by hiding the costs in hotel room rates, airport fees, and gas and car rental taxes. We've become so accus- tomed to this collection of fees and taxes we never give it a second thought. Locals love it because its one less tax res- idents have to pay. But the question remains, where does all that money go? Unless you are a good forensic accountant, it's difficult to track all the state revenues generated by travel and tourism and how they are used. According to Bloomberg, localities nationwide are on the hook for some $10 billion of stadium bonds, backed in large measure by revenues col- lected from travel and tourism dollars allocated at the state level. Is that a wise use of our money? That's a question that can only be answered at the local level. But one thing is certain; we have very few African-Americans asking these tough questions. Why? Ethnic and racial diversity in state travel and tourism departments, like their convention and visitor's bureau counterparts is sorely lacking. Many of the travel and tourism dollars that come from African-American's never circulate back to our communities because we have no one there to mind the store. It's safe to say, that an entire state does benefit to some extent by things like stadiums, roads and bridges and other infrastructure by way of jobs, but is that the only problem these dollars should solve. Remember, if you don't have a seat at the table, you are the appe- tizer, and we've been the appetizers for too long. Here's an example, without mention- ing names. One major city recently held a large sporting event. The city and state tourism officials spent years sprucing up the city promising financial reward for all. Local businesses in all communities prepared for this once in a generation event. When the event was actually held, B M & T ••• March/April 2014 ••• www.blackmeetingsandtourism.com 38 BROADENING THE SPECTRUM: U.S. TRAVEL A S S O C I A T I O N U.S. TOURISM B U D G E T BY GORDON HICKS STATE DEPARTMENTS OF TOURISM •Pg_38-50.qxp__BMT_pg86-162 5/20/14 5:49 PM Page 38