CVB opposes Division of Tourism budget cut

The state's travel industry is working to stop a potential decline in Missouri jobs and tax revenues that is expected to occur if a proposed 30 percent cut to the Division of Tourism's budget goes through.

"If such a large budget cut occurs, it will have a devastating effect on the travel industry and the state's economy," said Tracy Kimberlin, executive director of the Convention & Visitors Bureau.

The proposed $5.5 million cut would most likely result in cuts in advertising and marketing programs that draw visitors to the state.

If fewer people visit Missouri, tour-ism-related jobs and tax revenue will de-cline, making the state's budget situation even worse.

It also will hurt thousands of people employed in tourism-related jobs. One in 14 jobs in Missouri is tourism related. That's about 250,700 jobs total.

Locally, the state budget cuts could mean losses up to $450,000 in cooperative marketing funds for the Springfield Convention & Visitors Bureau. That's nearly half the bureau's advertising budget used to promote the city as a travel destination.

Advertising is important for the city as Springfield's economy relies heavily on tourism. A study conducted in 1998 by D.K. Shifflet & Associates showed that overnight visitors contributed $526.2 million in direct spending while in the Springfield area.

Statewide, travel and tourism is a $13 billion industry, and more than $600 million in tax revenues are collected by the state annually due to tourism. Tourism, in fact, is one of the top three revenue-producing industries in the state.

The money spent for tourism advertising and marketing in Missouri is a good investment, Kimberlin said. A study conducted by the University of Missouri showed that for every $1 the state spends on marketing tourism, $53.26 is returned in tourism expenditures, and $4.32 is generated in sales tax revenue.

"Cutting the Division of Tourism's budget doesn't make sense because tour-ism is a growth industry," Kimberlin said. "Why make such a drastic cut in funding for a program that is creating jobs and bringing revenue into the state?"

Because of these and other concerns the Springfield Convention & Visitors Bureau and other travel-related agencies and businesses in Missouri are asking citizens to let Gov. Bob Holden and state legislators know that such a large cut is inappropriate and would have a negative impact on the economy.

"The state's lawmakers need to hear from their constituents," Kimberlin said. "Their job is to represent the people, and I doubt there are many Missourians who want to see jobs go away or revenues deteriorate."

The Division of Tourism is willing to pitch in and do its part to help the governor deal with the state's budget situation. It is asking, however, that cuts to its budget be proportionate to cuts required by most agencies, which generally are being cut 8 percent to 10 percent.

"Rather than a 30 percent cut, Mis-souri's citizens should insist on a smaller, more reasonable cut for the Division of Tourism," Kimberlin said.

Besides affecting jobs and state revenues, such a cut also could be in violation of a law that specifies how the Di-vision of Tourism receives its funding.

Created in 1993, RSMo 620.467 specifies a performance-based funding mechanism by setting aside a percentage of the growth in tourism-related tax revenue up to $3 million annually for the Division of Tourism.

The bill also called for the division's funding from general revenue be eliminated over a period of 10 years after which the agency would be funded en-tirely from the growth in tourism-related sales tax. The division, however, agreed to become fully funded by sales tax last year two full years before it was scheduled because of a need for state budget cuts.

For more information about RSMo 620.467, visit www.missouritourism. org/pdf/HBHistoryReport.PDF

People who want to contact their legislators and the governor can find e-mail addresses and fax numbers in the bur-eau's February "Issues & Info" newsletter at www.springfieldmo.org/news.

(Susan Wade is public relations manager for the Springfield Conven-tion & Visitors Bureau.)