(June 4, 2004) The California Chamber-Sponsored bill to help increase tourism and travel in California passed the Senate last week with bi-partisan support and awaits assignment to a policy committee in the Assembly.

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.

“The tourism industry is either the fourth or fifth largest industry in the state of California, depending on the measurement criteria that you use. And it’s either the first or second largest economic generator in every single rural county in California,” said Chamber Chair John Koeberer at the California Chamber’s Business Legislative Summit earlier this year.  “Tourism offers endless employment opportunities for both entry-level workforce members and highly paid professionals.”

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 a bargain 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
Senators voted 29-8 to approve SB 1390 and continue the state’s partnership with the commission by appropriating a portion of the state’s statutory share of funding for the commission.

Voting Aye: Aanestad (R-Grass Valley);  Ackerman (R-Irvine); Alpert (D-San Diego); Ashburn (R-Bakersfield); Battin (R-La Quinta); Brulte (R-Rancho Cucamonga); Cedillo (D-Los Angeles); Denham (R-Merced); Ducheny (D-San Diego); Dunn (D-Santa Ana); Escutia (D-Whittier); Figueroa (D-Sunol); Florez (D-Schaffer); Karnette (D-Long Beach); Kuehl (D-Santa Monica); Machado (D-Linden); Margett (R-Arcadia); McPherson (R-Santa Cruz); Morrow (R-Oceanside); Murray (D-Los Angeles); Ortiz (D-Sacramento);  Perata (D-Oakland); Poochigian (R-Fresno); Scott (R-Altadena); Soto (D-Pomona); Speier (Hillsborough); Torlakson (D-Antioch); Vasconcellos (D-Santa Clara); Vincent (D-Inglewood).

Voting No: Alarcon (D-Sun Valley); Burton (D-San Francisco); Chesbro (D-Arcata); Hollingsworth (R-Murrieta); Johnson (R-Irvine); McClintock (R-Thousand Oaks); Oller (R-San Andreas); Romero (D-Los Angeles).

Abstaining: Bowen (D-Marina del Ray); Sher (D-Stanford).