Tourism investments to boost Mich. economy

Although the Michigan Legislature signed a package of bills into law temporarily increasing tourism funding last Thursday, legislators are already thinking about making the boost more long-term.

The package will supply the state’s tourism promotion coffers with $45 million during the next three years. The funds, which account for the state’s largest investment in tourism, will come from refinancing part of the state debt.

Liz Boyd, a spokeswoman for Gov. Jennifer Granholm, said the package was a part of Granholm’s economic stimulus plan and is not designed to become a government mainstay.

“This is a two to three year program, so we are focused on this at this time,” Boyd said.

Legislators, though, said the numbers concerning tourism promotion are difficult to ignore. Studies have shown that for every dollar a state puts into advertising, it receives anywhere between $2 and $3.40 in return.

That is why Sen. Jason Allen, R-Traverse City, proposed a bill in August to make tourism funding increases more permanent. In his plan, 25 percent of the remaining unrestricted sales tax revenue would be earmarked into a restricted fund for tourism. Joe Agostinelli, Allen’s legislative director, said that would generate between $20 million and $30 million for the program.

“Tourism money is generally realized through people purchasing goods and services, which people pay a sales tax on,” Agostinelli said. “It makes sense.”

Rep. Terry Brown, D-Pigeon, said he isn’t sure whether he would support Allen’s bill because it could divert funds from other issues, such as maintaining infrastructure.

Brown said he has a “dream” for Michigan in which tourism becomes a profitable industry. He said if the state performs well in the next three years, he would try to make tourism funding increases more permanent.

“We need a sustained presence in the tourism market,” Brown said. “We want to see stability in planning because you don’t always get instant results.

“But Michigan needs to be a player in it. We were one of lowest states in the United States and in the region for advertising for the past decade.”

Boyd, however, said people shouldn’t forget tourism is only a portion of Granholm’s larger economic plan. The future of tourism funding, she said, can be discussed when the state’s economic goals are achieved.

“This is part of an overall package; it’s just one piece,” she said. “This is a record amount of money and we are able to do this in a way that we can afford.”

Published on Thursday, April 24, 2008