PA Tourism Industry Fights Rendell Post-Budget Funding Cuts

The Pennsylvania Association of Convention and Visitors Bureaus, (PACVB) and the Pennsylvania Tourism and Lodging Association, representing 49 county-chartered (TPAs) and regional tourism promotion agencies, as well as the Hotel and Lodging Industry throughout Pennsylvania is questioning as well as strongly opposing the Rendell administration’s recent round of cuts to the already deeply reduced Tourism Promotion Assistance budget line item.

The cuts are part of the Governor’s sweeping $163.2 million reduction of the Commonwealth budget passed in October 2009 following protracted negotiation with the legislature. Pennsylvania Tourism Promotion funding was decreased from $32 million in 2009 to $14.2 million in the 2010 budget and with these latest rounds of cuts Tourism Promotion funding has been reduced to $11.246 million. This new round of cuts reduces the total line items by 65% since 2009.

The TPAs and regional marketing organizations argue that by promoting their counties as convention and meeting sites and vacation destinations regionally, nationally and, in some cases internationally, they fuel an industry with a $28 billion impact on Pennsylvania’s economy that creates more than $10.7 billion in wages and benefits. More important to the argument for restoring tourism funding, is the hospitality industry’s generation of $2.8 billion in state and municipal tax revenues that fund so many necessary social needs and education programs across the Commonwealth.

“This action is completely without precedent,” said PACVB president John Oliver, CEO and President of VisitErie. “At issue is the fact that the majority of the county TPAs already received and expended their funding in the exercise of their primary mission to create and protect the jobs of more than 400,000 Commonwealth citizens. Those TPAs that haven’t yet received funding were advised they’ll receive none. Our members followed all the rules of the competitive application, evaluation and award process; were notified of their grant amounts in October; signed contracts late in 2009 and received funds earlier this month. Now they’re being told to return those funds. It is unacceptable and disappointing.”

Oliver added, “The administration must recognize this industry’s ability to create jobs and revenue for Pennsylvania in a time of economic uncertainty. The deeply reduced Fiscal Year 2010 Commonwealth budget’s $8 million dollar line item for local tourism funding represents a minimal investment for so great a return to the programs and people who need them. The latest budget cuts guarantee the industry will immediately begin delivering less tax revenue, jeopardizing thousands of jobs at risk across Pennsylvania.”

The industry is reacting with a very strong response. We are sending letters to the Governor and to the General Assembly outlining the critical impact that Tourism has on the Pennsylvania economy and that “Jobs” will be lost with these latest rounds of cuts. We are explaining the issues and galvanizing support at the local level among our tourism industry partners at the county promotion agencies, as well as through a coalition of 13 statewide associations representing its various elements, from restaurateurs and hoteliers to attractions and ski area operators.

These cuts will also dramatically affect small businesses. Pennsylvania small businesses will have less promotion dollars to bring customers to Pennsylvania and PA small businesses will see the cancellation of their contracts with TPA’s. All of these things will cost Pennsylvanians jobs.

The hospitality industry of Pennsylvania has created a website, www.patourismequalsjobs.com, as a resource through which its membership and the general public can learn the issues and challenges it faces.

For more information please contact:

Rob Fulton – President, PACVB 717-901-0251 x. 111 or rob@pacvb.org

Or

John Oliver – President, VisitErie and Chair of PACVB at 814-454-1000 or joliver@visiterie.com

Posted February 5, 2010