A new study commissioned by the Arizona Tourism Alliance links cuts to tourism marketing in the state with declines in visitation and millions of dollars in lost tax revenues. According to the study, Arizona's tourism industry has lost 17,000 direct tourism jobs (30,000 total direct and indirect jobs), $2 billion in annual direct visitor spending, and $167 million in annual direct state and local tax revenues since 2007.
The study looked at the results of tourism declines over the last 24 months due to the recession, the backlash of corporate meetings, aggressive steps taken by competitors, and cuts to marketing budgets, including that of the Arizona Office of Tourism. Any additional redirection of state marketing resources will translate into lost jobs and lost state tax collections, the study warned. Currently, the Arizona governor's budget provides none of the voter-approved formula funding for the Arizona Office of Tourism. In addition, the Joint Legislative Budget Committee's budget suggests millions of dollars in cuts to the agency's marketing budget.
"The vitality of resorts and hotels has no bearing on us personally, but we are stressing the importance of funding the Arizona Office of Tourism to the Legislature because the proposed redirection of monies will result in negative economic consequences both in terms of maintaining jobs and state tax revenues," the report stated. To view the complete study, visit www.aztourismalliance.org/documents/ImpactReportFinal.pdf. For general information, call 602-452-2906 or visit www.aztourismalliance.org.
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