News & Information
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For Immediate Release
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Contact: Andy Deloney |
August 28, 2007
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517/377-3931 |
Allen Bill Boosts Michigan Tourism – Without Raising Taxes or Fees
“Pure Michigan”
Ad Campaign Would Be Competitive With Other States
LANSING
– Legislation introduced by state Sen. Jason Allen (R-Traverse
City) would increase tourism jobs and
revenues in Michigan
almost immediately by funding the state’s Pure Michigan ad campaign at levels
competitive with other tourism states.
Leaders of Michigan’s
tourism industry, including the Michigan Restaurant Association (MRA), welcomed
Senate Bill 690 as “the single most
important action” lawmakers and the governor can take to grow tourism and jumpstart
Michigan’s
economy. The legislation would boost the
state’s Pure Michigan ad campaign to $30 million annually from its current
level of $5.7 million – 42nd lowest in the nation – with no tax or fee
increases of any kind.
“We know that every $1 invested
in tourism promotion generates $2 to $3 in new sales tax revenues for the state
within a matter of months,” said R.D. “Dan” Musser III, president of the
world-renowned Grand Hotel on Mackinac Island,
an MRA member business. Musser is
serving as one of three co-chairs of Tourism Improving Michigan’s Economy
(TIME), a coalition of tourism and other businesses and organizations that strongly
backs the legislation. “Increasing the
Pure Michigan ad budget to $30 million will generate $60 million to $90 million
without raising taxes or fees. This is a
smart investment that will pay for itself two or three times over in new
revenues to the state and in new jobs as well.”
Other TIME members include the MRA,
the Michigan Hotel, Motel and Resort Association, the Michigan Chamber of
Commerce, the Michigan Association of Convention and Visitor Bureaus, the
Traverse City Convention and Visitors Bureau, and other groups.
TIME co-chair Stephen Kircher,
president of eastern operations for Boyne USA Resorts, another MRA member
business, said Michigan’s current
budget for Pure Michigan ads in other states is simply not competitive. “Michigan
is a spectacular four-season tourist destination, yet our tourism promotion
budget ranks near the bottom among the 50 states,” Kircher said. “We are leaving year-round tourism jobs and
sales tax revenues on the table for other states to gobble up.”
Just last week, the Travel
Industry Association of America named Pure Michigan the “Best State Tourism
Television Commercials” in the entire nation for 2007. Despite the obvious high quality of the ads,
in most years, Travel Michigan’s
budget for Pure Michigan is about $5.7 million, which would place 42nd lowest
in the nation at the end of this year unless the budget increases. Examples of other states in the region that
spend far more include Illinois, $48 million; Pennsylvania, $64 million; Virginia,
$21 million; and Wisconsin,
$15 million. In 2005, Gov. Jennifer
Granholm and the Legislature approved a one-time increase of $15 million in the
Travel Michigan budget to be spent over two years. The one-time appropriation expires at the end
of 2007.
Sen. Allen said tourism jobs and
sales tax revenues can provide a significant boost to Michigan’s economic recovery. “Tourism is already one of Michigan’s most important industries, yet we
can improve our public policies to help the industry generate even more
employment and economic benefits,” he said. “Tourism businesses from my district and
across the state have told me that this legislation will increase tourism jobs
and revenues almost immediately without raising taxes on vacationers. In my book, that’s smart economics and sound
public policy.”
Under SB 690, $30 million in revenues generated by the state’s 6-percent
sales tax would be earmarked annually to fund Travel Michigan ads in other states.
Founded in 1921, the Michigan Restaurant Association represents more than 4,500 Michigan foodservice establishments. The foodservice industry plays an integral role in Michigan’s economy, employing more than 421,000 people and creating more than $12.3 billion in total annual sales. For more information, call (517) 482-5244.
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