John W. Koeberer

(December 7, 2006) There’s good news in store for California tourism, which stands to gain from a sizable boost to travel marketing funding in 2007 due to a joint state-industry effort.

A coalition of tourism-related industries, with significant help from Governor Arnold Schwarzenegger and the cooperation of the Legislature, won approval of legislation that will make available $25 million in marketing funds in 2007 and $50 million in the years thereafter.

California Chamber-supported AB 2592 (Leno; D-San Francisco) enables the money to be generated from a pass-through assessment on rental cars that service tourism-oriented users and visitors.

Big Boost

The added funds are a big step up from what has been the norm for the California Travel and Tourism Commission, an industry self-assessment marketing organization that partners with state government to promote California’s tourism assets.

A tremendously effective organization with great leadership, the commission has been hampered since its inception 10 years ago by inadequate funding, working with an average yearly budget of about $10 million — enough only to barely scratch the marketing surface.

The state’s contribution has been sporadic, averaging only about $5 million in appropriations over the last 20 years.

Meanwhile, tourist destinations near and far — Las Vegas, Illinois, Texas, Florida, Virginia, China, South America, Australia, New Zealand, Africa, Croatia, to name a few — have been spending big bucks to capture a piece of the tourist pie.

A $50 million budget will allow California to join the very top tier of states that have recognized the value of marketing their tourism assets. Such a budget also puts the state in a good position to follow up on the tourism promotion that was a significant component of the Governor’s business missions to Japan, China and Mexico, as well as his future trade and investment missions.

High Returns

The potential return is huge. California’s diversified tourism assets are so dramatic that the ratio of marketing costs to benefits compared to other venues is truly remarkable.

Arguably, California is the finest piece of real estate on the planet. Tourism has been a significant and consistent contributor to the state’s economy as California’s fourth largest employer and the fifth largest contributor to the gross state product.

The industry is resilient, and through thick and thin, even when tourism was almost taken for granted, visitors still came and spent vast recreational dollars.

Travel research specialists conservatively project that a $10 million boost to the travel advertising budget would generate an additional $3.8 billion in travel expenditures and $75 million-$85 million in additional tax revenues, as well as tens of thousands of new jobs.

A significant number of those jobs are entry-level, but with tremendous career path opportunities.

Benefits for State, World

Beyond its contributions to California’s jobs and economic climate, the tourism industry benefits the state and the world in additional very important ways. There are no better emissaries of peaceful coexistence than the people of the world who choose to visit California and experience our people, our culture and our hospitality.

Worldwide travel is truly a vast financial and cultural bonanza that grows daily. With its new commitment to marketing its travel assets, California will soon begin to reap the lion’s share of increased worldwide access to the United States.

John W. Koeberer, a member of the California Chamber of Commerce Board of Directors and chair of the CalChamber Tourism Committee, is owner/chief executive officer of California Parks Companies, Red Bluff.