Oregon Tourism Investment Proposal

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Oregon Tourism Investment Plan
An industry proposal to bolster Oregons tourism
economy
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A Simple Plan
Oregon Tourism Investment Proposal
Presentation Overview

• Tourism and the Oregon Economy
• The Oregon Tourism Investment Plan
• Impact of the Oregon Tourism Investment Plan
• Challenges facing the Oregon Tourism Investment
  Plan

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Tourism and the Oregon Economy

• Economic Impacts of Tourism - 2001
• Travel spending topped 6 billion- up 73 since
  1991.
• Tourism employment was over 89,500 jobs, up 26
  since 1991.
• Tourism payroll was 1.7 billion, up 78 since
  1991.
• The Oregon Tourism Commission has three primary
  audiences that we serve
• Potential and actual visitors
• Travel agents, tour operators and travel media
• Industry partners - private businesses, local
  chambers of commerce, visitor bureaus and and
  governmental organizations

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Tourism and the Oregon Economy

• Advertising Accountability
• A media buy of 350,000 generated
• 220,300 new trips to Oregon
• an economic impact of 40 million.
• Research was reviewed and found to be strong and
  conservative..
• Every advertising dollar the Tourism Commission
  invests generates
• 3.40 in state tax revenue, and
• 1.60 in local tax revenue
• A 51 return in state and local taxes!

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Oregon Tourism Investment Proposal

• 1 statewide transient occupancy tax (TOT).
• Dedication of Statewide TOT to Oregon Tourism
  Commission.
• Freeze on apportionment of TOTs used for tourism.
• Moratorium on future TOT increases except for
  tourism.
• Maintenance of Existing Lottery Dollars for
  Tourism.
• Creation of Cooperative Regional Marketing
  Program and Tourism Trust Fund.
• 5 collection reimbursement charge.

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Impact of the Proposal

• Bolsters the economy by providing additional
  dollars for tourism advertising, potentially
  resulting in
• 540 million in new visitor expenditures annually
• 136 million increase in employee earnings
• 16 million increase in state tax revenues
• 8 million increase in local tax revenues
• Supports local tourism efforts through the
  Cooperative Regional Marketing Program.
• Makes Oregon competitive in the tourism
  marketplace.
• Provides stable funding into the future.

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Facing Challenges

• Would it be better to just produce additional
  lottery dollars?
• Won't the restriction on the definitions if
  tourism be vulnerable to changes by the cities
  and counties to get them out of the limitations
  placed on them?
• What is to stop the legislature from increasing
  the tax once it is in place?

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Facing Challenges

• Why should the tax only apply to lodging?
  Shouldnt the restaurants and other businesses
  that benefit from tourism contribute too?
• Would the fund created by the proposal be
  vulnerable to raids by the legislature looking
  for new sources of funding?

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Small Risk of Raiding
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Lessons Learned

• Research is key!
• Industry support communication is vital
  (traditional and non)!
• Relationships are built through trust over the
  long-term
• Patience, civility and a strong, validated
  message can carry the day.

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Oregon Tourism Investment Plan
An industry proposal to bolster Oregons tourism
economy