(June 23, 2004) California Chamber-supported legislation to increase tourism and travel in the state passed the Assembly Arts, Entertainment, Sports, Tourism and Internet Media Committee June 22.

SB 1390 (Speier; D- San Francisco/San Mateo) provides crucial funding to the California Travel and Tourism Commission, thereby assisting a key California industry that generates economic and revenue benefits to the state.

“Supporting tourism in California should be a high priority for legislators considering the state’s recovering economy,” said Charles Bacchi, Chamber legislative advocate. “The tourism industry generates billions of dollars for California in economic activity, tax revenue and employment.”

California’s tourism and travel businesses voluntarily assess themselves each year to help increase tourism and travel to California. When the state created the commission, it committed to share in funding for the group. The remainder of the funding is provided by employer assessments.

While the Chamber recognizes that the state is suffering under a severe budget crisis and that general funds are scarce, the Chamber considers the commission an essential financial element that helps to raise state tax revenues by increasing spending by consumers in the state.

Each $1 invested in tourism marketing creates $196 of economic activity and returns almost $7 to the state and local treasuries in the form of taxes.

Moreover, tourism jobs are tied to California, given that natural attractions cannot be relocated. Tourism also is the first or second largest economic generator in every rural county in the state.

The Chamber urged legislators to consider the importance of the travel and tourism industry to the California economy, and the economic benefits and state revenues generated by the commission’s activities.

Key Vote
SB 1390 passed the committee 7-1 and will be heard by the Assembly Appropriations Committee at a later date.

Ayes: Chavez (D-La Puente); Cohn (D-Saratoga); J. Horton (D-Inglewood); Leslie (R-Tahoe City); Longville (D-San Bernardino); Nakano (D-Torrance); Pavley (D-Agoura Hills).

Noes: Reyes (D-Fresno)

Absent, abstaining or not voting: Strickland (R-Thousand Oaks): La Malfa (R-Richvale); Matthews (D-Tracy); Ridley-Thomas (D-Los Angeles); Samuelian (R-Clovis).

For more information about this or other Chamber-supported bills, please visit our website at www.calchamber.com.