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Under the leadership of Gov. Rick Scott, the revival of the Florida economy has been marked by annual job growth and tourism rates that outpace the national average. The inextricable link between Florida’s investment in its tourism industry and this economic recovery is affirmed by the statistics.
Visitor spending in Florida has increased by an average of 6.8 percent annually over the past five years, with $78.3 billion spent in 2010 growing to a $108.8 billion total by 2015. The impact of this job creation spending cannot be understated, with statistics showing that for every 76 visitors that visit the state, one job is supported. In addition, the return on investment Florida sees from VISIT Florida is irrefutably positive, with each dollar invested in VISIT Florida generating $3.20 in tax revenue.
To gauge just how disastrous major cuts to VISIT Florida would be, one must look to Colorado. Keep in mind that Colorado has a more diversified and equitable share of its gross domestic product among different industries, and is not quite as reliant upon the tourism industry alone for its revenues. So, presumably, the effects of defunding tourism marketing programs in Florida would be even more drastic than those seen in Colorado.
In 1993, an obscure provision in the state law allowed for the funding of the state’s tourism marketing mechanisms to expire. This meant that Colorado became the first state to essentially eliminate its funding for tourism marketing.
The effects were fairly immediate and more drastic than could have been anticipated. The elimination of their $12 million tourism marketing budget manifested in a 30 percent decrease in Colorado’s share of the domestic tourism market. In terms of dollars, this constituted a contraction of Colorado’s tourism revenue by $1.4 billion annually.
Eventually, this loss would consistently top $2 billion, with Colorado’s summer resort tourism share, previously No. 1 in the nation, falling to 17th place as a symptom of these ill-advised cuts to tourism marketing.
Even more troublesome is the reality that despite this self-inflicted annual hemorrhaging of Coloradans’ tourism revenue is the reality that it took seven years to reinstate a tourism marketing budget. We all know the wheels of democracy can be sluggish, but it could be avoidable. With billion-plus dollar losses within the tourism industry, enduring for seven years without real intervention is a frightening prospect. It is a prospective reality that the legislature should seriously consider as it continues to push for cuts in funding VISIT Florida.
For comparison’s sake, in 2015 Colorado set a state visitor spending record with $19.1 billion collected. As noted, Florida’s 2015 visitor spending total was over $108 billion. One can understand that the impact of cutting tourism marketing funds in Florida would have exponentially significant and dire consequences to the state economy than Colorado experienced.
Fortunately, like Florida, Colorado’s tourism is now thriving, setting records in terms of visitor numbers, spending and tax revenues. Legislators acknowledge the critical role that marketing campaigns have served in producing record tourism numbers, and they have increased spending annually since the budget was reinstated in 2000. What started as a $5.5 million budget for tourism marketing in 2000 has become a $19 million resource pool in 2015, a relatively minor investment with a substantial payout.
Colorado provides a microcosmic, yet very real, cautionary tale regarding the value of funding marketing for Florida’s tourism industry. VISIT Florida, under the guidance of Gov. Scott, have installed a framework that spreads investment costs between the public and private sectors, all the while maintaining systems that allow for misspent money to be recouped.
Money spent through VISIT Florida is fiscally responsible, logical for businesses and critical to the prosperity of Florida’s citizens. For proof of their essentiality to Florida’s tourism-dependent economy, simply look to the West.
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Pat Neal is former state senator and the former chair of the Christian Coalition of Florida; currently serves as chairman-elect for the board of directors of Florida TaxWatch, the state’s independent, nonpartisan, nonprofit research institute and government watchdog; and is the president of Neal Communities.
One comment
Gary Muzio
June 8, 2017 at 11:38 am
A few things here. As a Christian Coalition leader and Rick Scott apologist, Pat Neal is hardly “nonpartisan”! Secondly, he conveniently overlooks the elephant in the room when he cites the tourism resurgence in Colorado – legalized marijuana! You want Florida tourism to surge and the states economy maybe grow enough to have a school system that isn’t a laughing stock? Tell the legislators to listen to the will of the people and legalize recreational pot! 72% voted for medicinal use and my guess is, the same % would approve recreational. Doubt you’ll see that make it a referendum question, simply because they know the results and the subsequent pressue
would be impossible to ignore. Funny how so many on the right scream about state’s rights….until the people of the state go in a direction that doesn’t fit their agenda.
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