Tourism backers hope to blunt cuts

JEFFERSON CITY, Mo. -- Proposed deep cuts to state spending on promoting tourism would be counterproductive, tourism officials told lawmakers Wednesday, costing Missouri revenue when it sorely needs to generate more.

After suggested cuts by Gov. Bob Holden and a House committee, the Division of Tourism is facing a 37 percent budget reduction.

Lt. Gov. Joe Maxwell, a member of the division's governing commission, told the Joint Tourism Committee that promoting Missouri to out-of-state visitors is proven to generate business for local merchants and, therefore, revenue for state and local governments.

"You don't cut advertising in tough times," said Maxwell. "We believe we can help in these economic times, but not if we cut advertising."

If fewer visitors are enticed to the state, that means less outside money spent in Missouri, Maxwell said.

Gary Figgins of Kennett, Mo., was one of many in the tourism industry on hand to support Maxwell's position. Figgins is the legislative director for the Missouri Travel Council.

"Very few state agencies can say they are revenue producers," Figgins said. "The Division of Tourism has proven over and over again that it is a big revenue producer."

According to statistics provided by the Missouri Tourism Coalition, every $1 the state spends on tourism marketing generates $53.26 in spending by visitors. Of that amount, the state gets $4.32 in sales taxes.

$12.5 billion impact

The coalition estimates that tourism had a total economic impact of $12.5 billion on Missouri in FY 2001.

Figgins said the proposed cuts would hurt Southeast Missouri on many levels. Especially damaging would be a loss of marketing grants distributed to cities and counties.

Area communities are receiving about $40,000 in grants for the current fiscal year.

If the planned cuts hold, the tourism division is looking at an $11.3 million budget, a dramatic drop from the $17.6 million it was appropriated for this year.

Those reductions represent 25 percent of those slated for the Department of Economic Development, of which the tourism division is a part.

Because the state needs to generate revenue sooner rather than later, Maxwell said investing in tourism makes more sense right now than putting money in some other economic development efforts.

He said tourism yields a quick return while some other programs take years to mature.

"Every dollar I can find, I'd like to put into the tourism fund," Maxwell said.

mpowers@semissourian.com

(573) 635-4608