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Look to Colorado:‭ ‬Cutting Visit Florida Funding Would Be Disastrous

June 6, 2017 - 3:00pm

Under the leadership of Gov.‭ ‬Rick Scott,‭ ‬the revival of the Florida economy has been marked by annual job growth and tourism rates that outpace the national average.‭ ‬The inextricable link between Florida’s investment in its tourism industry and this economic recovery is affirmed by the statistics.‭ 

Visitor spending in Florida has increased by an average of‭ ‬6.8‭ ‬percent annually over the past five years,‭ ‬with‭ ‬$78.3‭ ‬billion spent in‭ ‬2010‭ ‬growing to a‭ ‬$108.8‭ ‬billion total by‭ ‬2015.‭ ‬The impact of this job creation spending cannot be understated,‭ ‬with statistics showing that for every‭ ‬76‭ ‬visitors that visit the state,‭ ‬one job is supported.‭ ‬In addition,‭ ‬the return on investment Florida sees from Visit Florida is irrefutably positive,‭ ‬with each dollar invested in Visit Florida generating‭ ‬$3.20‭ ‬in tax revenue.

To gauge just how disastrous major cuts to Visit Florida would be,‭ ‬one must look to Colorado.‭ ‬Keep in mind that Colorado has a more diversified and equitable share of its‭ ‬gross domestic product among different industries,‭ ‬and is not quite as reliant upon the tourism industry alone for its revenues.‭ ‬So,‭ ‬presumably,‭ ‬the effects of defunding tourism marketing programs in Florida would be even more drastic than those seen in Colorado.

In‭ ‬1993,‭ ‬an obscure‭ ‬provision in the state law allowed for the funding of the state’s tourism marketing mechanisms to expire.‭ ‬This meant that Colorado became the first state to essentially eliminate its funding for tourism marketing.‭ 

The effects were fairly immediate and more drastic than could have been anticipated.‭ ‬The elimination of their‭ ‬$12‭ ‬million tourism marketing budget manifested in a‭ ‬30‭ ‬percent decrease in Colorado’s share of the domestic tourism market.‭ ‬In terms of dollars,‭ ‬this constituted a contraction of Colorado’s tourism revenue by‭ ‬$1.4‭ ‬billion annually.‭ 

Eventually,‭ ‬this loss would consistently top‭ ‬$2‭ ‬billion,‭ ‬with Colorado’s summer resort tourism share,‭ ‬previously number one in the nation,‭ ‬falling to‭ ‬17th place as a symptom of these ill-advised cuts to tourism marketing.

Even more troublesome is the reality that despite this self-inflicted annual hemorrhaging of Coloradans‭’ ‬tourism revenue is the reality that it took seven years to reinstate a tourism marketing budget.‭ ‬We all know the wheels of democracy can be sluggish,‭ ‬but it could be avoidable.‭ ‬With‭ ‬billion-plus dollar losses within the tourism industry,‭ ‬enduring for seven years without real intervention is a frightening prospect.‭ ‬It is a prospective reality that the legislature should seriously consider as it continues to push for cuts in funding Visit Florida.

For comparison’s sake,‭ ‬in‭ ‬2015‭ ‬Colorado set a state visitor spending record with‭ ‬$19.1‭ ‬billion collected.‭ ‬As noted,‭ ‬Florida’s‭ ‬2015‭ ‬visitor spending total was over‭ ‬$108‭ ‬billion.‭ ‬One can understand that the impact of cutting tourism marketing funds in Florida would have exponentially significant and dire consequences to the state economy than Colorado experienced.

Fortunately,‭ ‬like Florida,‭ ‬Colorado’s tourism is now thriving,‭ ‬setting records in terms of visitor numbers,‭ ‬spending and tax revenues.‭ ‬Legislators acknowledge the critical role that marketing campaigns have served in producing record tourism numbers,‭ ‬and they have increased spending annually since the budget was reinstated in‭ ‬2000.‭ ‬What started as a‭ ‬$5.5‭ ‬million budget for tourism marketing in‭ ‬2000‭ ‬has become a‭ ‬$19‭ ‬million resource pool in‭ ‬2015,‭ ‬a relatively minor investment with a substantial payout.

Colorado provides a microcosmic,‭ ‬yet very real,‭ ‬cautionary tale regarding the value of funding marketing for Florida’s tourism industry.‭ ‬Visit Florida,‭ ‬under the guidance of Gov.‭ ‬Scott,‭ ‬have installed a framework that spreads investment costs between the public and private sectors,‭ ‬all the while maintaining systems that allow for misspent money to be recouped.

Money spent through Visit Florida is fiscally responsible,‭ ‬logical for businesses and critical to the prosperity of Florida’s citizens.‭ ‬For proof of their essentiality to Florida’s tourism-dependent economy,‭ ‬simply look to the West.‭ 

Pat Neal is former state senator and the former chair of the Christian Coalition of Florida‭; ‬currently serves as chairman-elect for the board of‭ ‬directors of Florida TaxWatch,‭ ‬the state‭’‬s independent,‭ ‬nonpartisan,‭ ‬nonprofit research institute and government watchdog‭; ‬and is the president of Neal Communities.

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