State of Washington Tourism Program Update
- Issuer
- Congressional materials
- Document type
- 2024 09 18 A32203 D273915 Swt State Of Washington Tourism Program Update
- Date
- 2024-09-18
- Case
- 2024 09 18 A32203 D273915 Swt State Of Washington Tourism Program Update
Summary
A slide presentation titled State of Washington Tourism Program Update, dated September 18, 2024 and presented by the organization's CEO. It describes industry recovery programs, including a $3.5 million distribution of federal recovery funds for 2024-2025, and destination development grants for 2024 with 215 applicants and 55 grants awarded. It reports marketing campaign returns and a competitive analysis of lodging performance, international visitation and tourism-supported employment against 2019 levels. A funding history lists sources including a 2021-23 legislative proviso of federal relief funds of $12M. The presentation proposes a funding model pairing $4.5M in general fund appropriation with a $23M Tourism Improvement District, and cites projected additional visitor expenditures of $14.6 billion for 2025–2034.
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Cite this document
“State of Washington Tourism Program Update.”
Original at app.leg.wa.gov, dated 2024-09-18. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2024-09-18-2024-09-18-a32203-d273915-swt-state-of-washington-tourism-program-update/
, SHA-256 1aa682ec1b7ae21614bf1f7829416b09743a900b368aaf05b9036ad52164236e.Full text
STATE OF WASHINGTON TOURISM
PROGRAM UPDATE
David Blandford, CEO
State of Washington Tourism
September 18, 2024
INDUSTRY RECOVERY AND
DEVELOPMENT
Rural Tourism Support program
Technical assistance & development
grants
DMO recovery grants
Agritourism grants
Industry co-op programs – consumer
data and research
$3.5 million distribution of in federal
recovery funds for Washington’s
tourism industry in 2024-2025
(contracted by Dept. of Commerce)
2.
Photo via Port of Seattle
DESTINATION
DEVELOPMENT
GRANTS
• 9 Programs total:
• Rural Tourism Marketing and
Production Grant
• Sports Incentivization Grant
• Rural Tourism Data and Research Grant
• Indigenous Marketing and Production
Grant
• Arts and Culture Grant
• Technical Assistance Grant
• Tourism Regeneration Grant
• Rural Tourism Support Program
• Indigenous Tourism Support Program
1.
Photo via Port of Seattle
DESTINATION DEVELOPMENT GRANTS
2024 Grants:
• 215 Applicants
• $4.92M in applications
• 55 grants awarded
• $1,062M allocated
• $750,000 Tourism Regeneration
grant open in September
MARKETING
CAMPAIGN RESULTS
• 2022 launch: $33:1 ROI
• 2022-2023: $69:1 ROI
• 2023-2024: $184:1 ROI
Time in market has increased
campaign efficiency, but
that stands to be lost
without sustainable funding
RESPONSIBLE TRAVELER, ADVISORY & EDUCATION
• Balanced promotions
• Seasons, need periods
• Sensitive communities
• Public and tribal lands
• Coordination
• State agencies
• Emergency management
• Public/traveler education
• Responsible Outdoor Travel
Summit
TRAVEL TRADE &
OVERSEAS TOURISM
Year-round trade show
promotion
Tour operator/media
IPW in LA FAMs
Co-op programs for
industry
In-market
representation:
UK/Ireland, Germany,
Australia
Project contracts:
Japan, South Korea,
France, Benelux
FAM Visit to Nordic Wild WA Wine Event, London
7.
Museum
COMPETITIVE ANALYSIS: OVERVIEW
Washington ranked 5th in lodging industry size and last in tourism office funding
Source: State of Washington Tourism, U.S. Travel Association, STR
8
COMPETITIVE ANALYSIS: LODGING PERFORMANCE
Washington trailed pre-pandemic levels by 4% more than its competitive set in 2023
Washington
Competitive set average
United States
99 99 98
97
95 95
93
88
84
69
64
59
Source: STR
2019 2020 2021 2022 2023
9
COMPETITIVE ANALYSIS: INTERNATIONAL MARKETS
International visitation recovery in Washington trailed competitive set by 37%
Washington
Competitive set average
United States
79 82
62
57
42
28 30
24 23 22 26
19
Source: Tourism Economics 2019 2020 2021 2022 2023
10
COMPETITIVE ANALYSIS: TOURISM-SUPPORTED EMPLOYMENT
Washington leisure and hospitality industry jobs recovery trailed competitive set by 5% in 2023
Washington
Competitive set average
104
United States
100 99 100
95
94
90
85
81 82
79
75
Source: BLS
2019 2020 2021 2022 2023
11
THE ROAD TO HERE:
COBBLING TOGETHER FUNDS TO RE-BUILD
2011 State tourism office closed in Great Recession
2018 Base funding/2:1 private/public match = $1.5M annually
2021-22 Port of Seattle recovery partnership = $1.5M
2021-23 Legislative proviso (federal relief funds) = $12M
2023-24 Port of Seattle overseas marketing contract = $800,000
2023-25 Biennial base funding increase/industry 1:1 match = $4.5M
12.
13.
BENCHMARK
STATE TOURISM
STUDY
• SWT ROI: 29:1
• WA significantly
under-funded
relative to market
size
• WA stands to gain
$14.6 billion in next
decade with budget
comparable to
competing western
states
SUCCESSFUL DESTINATIONS TAP USER FEES
Brand USA $250 million annual budget
Fees paid by Visa Waiver country visitors to U.S.
Matched 1:1 by travel industry/corporations
Re-authorized by Congress every six years
Travel Oregon $38 million annual budget
Tax paid by hotel guests via 1.5% transient lodging tax
Visit California $164 million annual budget
Fees of visitors via a Tourism Improvement District
30-year success, 97% favorability of TID businesses
15.
VISIT CALIFORNIA TID
Tourism businesses across multiple segments pass on fees at 0.2% of a
dollar (two tenths of a cent) to customers:
• Hotels/motels • Attractions
• Food service • Amusement parks
• Wineries/breweries • Museums/performing arts
• Passenger car rental • Tour operators/outfitters
• Sightseeing • Ski operations
• Transportation • Golf operations
16.
SAMPLE TID ASSESSMENT FEES AT .2% OF A DOLLAR
$200 hotel folio 40 cents
$20 attraction ticket 4 cents
$400 car rental 80 cents
$100 restaurant bill 10 cents
$150 guided tour 30 cents
Administrative Ease:
DOR collects assessments in alignment
with tax collections/schedules
17.
A SUSTAINABLE + COMPETITIVE
STATE TOURISM FUNDING MODEL FOR WASHINGTON
$4.5M Maintain general fund appropriation
Critical operational base funding
Align with Dept. of Commerce, regional resiliency programs
$23M Tourism improvement District (TID)
No General Fund impact
Industry self-assessment within state BIA law (not tax)
Nominal fees passed to visitors (0.2% of a dollar)
Balanced across broad business segments and geographies
18.
RESULTS: STATEWIDE, YEAR-ROUND IMPACT
Always-on International Niche Visitor Off-season
marketing markets fully campaigns management and need
campaigns activated nationwide programs periods
19.
OUTCOME: MORE BUSINESS FOR WASHINGTON
Projected Returns with a $25M budget, 2025–2034
(source: Tourism Economics):
$14.6 billion Additional visitor expenditures
2.1 billion Additional room revenue ($250M/year average)
$1.4 billion Additional state and local tax revenue
$116 million Additional lodging tax revenue
20.
THANK YOU
ANY QUESTIONS?
File and source
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- 2024-09-18_a32203_d273915_swt-state-of-washington-tourism-program-update.pdf
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- SHA-256
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- Original
- app.leg.wa.gov