(June 7, 2005) The California Chamber of Commerce is urging legislative leaders and the budget conference committee to take action and restore to the budget the $7.3 million in matching state funds for tourism marketing that Governor Schwarzenegger has proposed.

”The tourism industry is important to California’s economy and brings billions of dollars to the state,” said Charles Bacchi, Chamber legislative advocate.  “Supporting the Governor’s recommendation and creating a robust state and private sector partnership is a huge step in keeping California competitive with other states and provides strong economic returns.”

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Historically, the tourism industry has assessed itself to raise private funds for marketing California. These private funds were matched by state funds to reflect the increased tax revenue the state receives from visitors in a public private partnership. 

However, California’s budget crisis has resulted in two years of no state contribution to the tourism-marketing act. This has left private businesses raising approximately $7 million in marketing funds, placing California 31st in the nation in promotion. As a result, the state’s share of domestic travel has dropped.

Earlier this year, Governor Arnold Schwarzenegger proposed a return to the public-private partnership with $7.3 million in state funds for the 2005-2006 budget. Unfortunately, although each house of the Legislature approved more than $7 million in state funding, the entire funding was stricken by the budget conference committee.

Tourism and California’s Economy
The travel, tourism, and entertainment industries all play an important role in helping California’s economy get back on track. California tourist attractions are a major draw for our residents as well as residents from the rest of the nation and the world.

A recent study commissioned by the state shows that every dollar invested in promoting travel to California returns $19 in state and local taxes.

In 2004:

• total direct travel spending in California was $82.5 billion;
• travel spending in California directly supported 892,600 jobs and generated 261,500 jobs in food service, 220,500 jobs in arts, entertainment and recreation and 192,200 jobs in accommodations; and
• travel spending also generated $1.9 billion in local taxes and $3.3 billion in state taxes, of which approximately $500 million was tax revenue from motor fuel.

The Chamber believes that restoring the state’s share of funding this public-private partnership for tourism marketing will benefit the California economy, the travel, tourism and entertainment industries, and ultimately will yield added revenues for the state.

Action Needed
The Chamber is urging all employers to write or call members of the budget conference committee and the legislative leadership to urge them to restore the $7.3 million in Tourism Marketing Funds that was deleted by the conference committee.

For more information on tourism or to send a letter, please visit the Chamber’s website at www.calchamber.com.