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Tourism
BETTER FUNDING FOR STATE TOURISM ORGANIZATIONS

An almost universal problem for state tourism organizations is the scarcity of funding. Budgets are tight with so many social and other problems plaguing the states. Also, there is some reluctance to fund the tourism promotion organization by those who feel mistakenly that it is mainly the tourist businesses that profit from the industry rather than the population in general. Competition for state funds by other agencies is intense and, as a rule, the tourism people do not as good as lobbying as other interest groups. In order to do something at this regard, the Governor appointed a 40-member tourism task force to investigate ways in which tourism promotion could be accomplished in a more adequate manner. The task force has come up with the following plan: they recommend that the state legislature establish a “tourism marketing order” to raise funds from assessments the industry makes upon itself about the way in which each business should contribute to funding. Businesses that would be assessed include transportation companies, travel agencies, cruise lines, rental car companies, accommodations, attractions, recreation facilities, restaurants, retail outlets, factory outlets, and bars/drinking places. All funds raised would be used for state-wide tourism promotion. In order to implement this plan, the state legislature must first authorize a statewide referendum that would be conducted by the industry among its members to see if this plan is desired. If so, then how should the assessment be made, and at what level?

Acting as consultants for the state Governor, answer to the following questions

1. What do you think of this plan? 2. Would it be acceptable to the majority of tourism businesses? 3. How would the assessment be most fairly made? To what extent different business should...

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