Strengthening Washington's Visitor Economy — Tourism Investment & Competitiveness, Self-Advisory Group Recommendations, January 20, 2026
- Issuer
- Congressional materials
- Date
- 2026-01-20
Summary
A presentation dated January 20, 2026 titled Strengthening Washington's Visitor Economy, covering tourism investment and competitiveness, self-assessment advisory group recommendations and a policy framework, led by the CEO of State of Washington Tourism. It traces state tourism funding from the 2011 closure of the state tourism office to a 2025-27 cut in state base funding from $4.5M to $1.5M per year, and compares FY 24/25 state tourism budgets, listing Washington at $4.5M against California at $180M. The advisory group established by SSB 5492 in 2025 recommends an industry-ratified assessment based on a percentage of gross revenue, six-year terms, industry self-governance and annual collections of $25 million. A Tourism Economics projection lists $14.6 billion in additional visitor expenditures over 2025–2034 with a $25M budget.
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“Strengthening Washington's Visitor Economy — Tourism Investment & Competitiveness, Self-Advisory Group Recommendations, January 20, 2026.”
Original at app.leg.wa.gov, dated 2026-01-20. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2026-01-20-2026-01-20-a33671-d291068-state-of-washington-tourism-strengthing-washington-s-visitor/
, SHA-256 1c3523b0a306c632a93ee0e0439089c460263550a5ee669f52a91faaea019860.Full text
STRENGTHENING WASHINGTON’S
VISITOR ECONOMY
TOURISM INVESTMENT & COMPETITIVENESS,
SELF-ADVISORY GROUP RECOMMENDATIONS,
AND POLICY FRAMEWORK
January 20, 2026
DAVID BLANDFORD
CEO
STATE OF WASHINGTON TOURISM
2.
THE ROAD TO HERE: FUNDING INNOVATION
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
2025-27 Port of Seattle Int’l Program = $1.5M
2025-27 State base funding cut from $4.5M to $1.5M per year
3.
INDUSTRY INVESTMENT
SWT FUNDING TRAJECTORY (WITH CURRENT MODEL)
5.
FY 24/25 ANNUAL STATE TOURISM BUDGETS
Operating Budget Marketing Budget
California $180M $154M
Oregon $49M $17.9M
Arizona $31M $32.5M
Utah $24.5M $16.6M
Wyoming $17.M $13.4M
Idaho $20M $9.7M
Washington $4.5M $3.3M
6.
COMPETITIVE ANALYSIS
LODGING PERFORMANCE INTERNATIONAL MARKETS TOURISM-SUPPORTED EMPLOYMENT
Washington trailed pre-pandemic levels by 4% more than its International visitation recovery in Washington trailed Washington leisure and hospitality industry jobs recovery
competitive set in 2023 competitive set by 37% trailed competitive set by 5% in 2023
Washington
Competitive set average
United States
99 99 98
97
95 95
93
88
84
69
64
59
2019 2020 2021 2022 2023
8
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
Visit California $164 million annual budget
Derived from visitor fees
30-year industry self-supported assessment
97% favorability of participating businesses
Tourism Promotion Areas 200+ created in past two years
Generate significantly more demand &
revenue for destinations
10.
INDUSTRY SELF-ASSESSMENT:
EXPLORATION, REFINEMENT AND INDUSTRY OUTREACH
• 18-month stakeholder outreach and listening sessions
• 200+ funding model presentations
• Robust DMO engagement
• All trade and business associations
• Business leader meetings in all sectors
• Legislative and gubernatorial presentations
• Best practices and case studies: US Travel Association, state tourism directors
11.
U.S. TRAVEL ASSOCIATION ~ CIVITAS ADVISORS
2025 TAX STUDY KEY FINDINGS
• U.S. destinations experienced steady increases in tax and assessment rates
in the past year
• Approximately half of the rate increases were dedicated back to the
destination industry
• Call out to Washington’s sustainable funding proposal:
“We expect more states follow suit in the next several years. The economic case
for statewide tourism promotion has strengthened as states recognize the
substantial revenue potential from coordinated destination marketing, and the
consistency enabled by centralizing state-wide marketing under one roof.”
12.
CHRIS STONE
DEPUTY DIRECTOR
WASHINGTON STATE WINE
13.
P RO M OT I N G &
S U P P O RTI N G
WA S H I N GTON
MARKETING & EDUCATION
100+ domestic and international
programs & events each year
Educational seminars and
engagement with wine trade
Robust media relations
Inbound tours & hosting
Top notch social & digital media
program
Open to ALL Washington wineries
ECONOMIC IMPACT
51,400 jobs that support WA
residents and families
$1 Billion in annual state and local tax
dollars
RESEARCH
World-class wine
research program
• Washington’s wine industry allocates
20% of its budget to support a
groundbreaking viticulture and enology
research program, along with the state-
of-the-art WSU Wine Science Center.
• Research priorities are 100% industry
driven, and results are available to
every winery and vineyard in the state.
• Outreach is a major priority, to ensure
farmers and winemakers have the most
updated information to make even
better wine and grow even better fruit.
BY THE NUMBERS W A W I N E
WINERIES GROWERS TONS PRODUCED ACRES PLANTED
1,000+ 400+ 150,000 50,000+
Ninety percent of Washington state’s wineries are small, family-owned
wineries who make fewer than 5,000 cases a year.
Annual In-state Economic Impact Annual Wine Production
$10+ Billion 10 Million Cases
0 200 400 600 800 1000 1200
1981 19
2000 74
2001 100
2002 130
NUMBER OF WINERIES
2003 159
LICENSED WINERIES
2004 178
2006 250
2008 337
2009 386
2010 441
2011 474
2012 515
A BRIEF HISTORY OF EXPLOSIVE GROWTH
2013 564
2014 642
2015 694
2016 760
2017 854
2018 944
2019 1000
2020 1041
2021 1050
2022 1070
2023 1060
2024 1050
2025 1000
W A
W I N E
BRIAN FLAHERTY
CHIEF OPERATING OFFICER
COLUMBIA HOSPITALITY
18.
INDUSTRY SELF-ASSESSMENT ADVISORY GROUP
ESTABLISHMENT AND SCOPE OF WORK
• Established by SSB 5492 in 2025
• 18 industry leaders
• 7 industry business segments
• Appointed by Chair of the Washington Tourism Marketing Authority (WTMA)
• Work period between August and October, 2025
• Report delivered to the legislature in late October (for November 1 deadline)
19.
SELF-ASSESSMENT ADVISORY GROUP
FOUNDATIONAL PRIORITIES
• Competitive and predictable state tourism funding is critical to industry success
• The assessment program must be by and for the industry
• Industry leadership of the program is essential for industry wide support
• Tourism program must drive market development and visitor demand for WA
• Ensure adequate operating budget to competitively position WA ($25M target)
• Work collaboratively + strategically with industry and regional DMOs
20.
REPORT RECOMMENDATIONS
1. Classification of Businesses to be Assessed - General and Broad
Tourism business segments most likely to benefit from the industry
⎻ Lodging (hotels, b&bs, RV parks, short term rentals)
⎻ Travel services (transportation, sightseeing tours)
⎻ Attractions (attractions, museums, performing arts and theme parks)
⎻ Recreation (ski areas and golf courses)
⎻ Beverage Industry (wine, beer, distilling and cider-making)
⎻ Full-Service Restaurants and Drinking places (full-service)
⎻ Retail (department stores and general merchandise)
21.
REPORT RECOMMENDATIONS
2. Assessment Methodology and Ratification Ballot Process
⎻ Uniquely ties assessment to concept of direct ratepayer benefit
⎻ Industry run ratification process and renewal authority
⎻ Type of assessment and proposed budget set in industry
ratification rather than prescribed in statute, granting ratepayers
significant influence over structure and scale of the program
22.
REPORT RECOMMENDATIONS
3. Rate of Assessment
⎻ Assessment rate based upon a percentage of gross revenue,
(simple to apply across all business types and pass to customers)
⎻ Businesses should have the option to incur assessment fees or to
pass through to customers
⎻ The amount of annual assessment collections should amount to
$25 million to position the program competitively and sustain its
statewide operations
23.
REPORT RECOMMENDATIONS
4. Characteristics of Businesses that will Benefit
⎻ Assessment should aid businesses that provide goods and services
that benefit from direct visitor spending
⎻ Business activity assessed is retail-facing, rather than wholesale
24.
REPORT RECOMMENDATIONS
5. Assessment Term
⎻ Six (6) year terms are recommended
⎻ This duration has worked well in other destinations
⎻ Allows for the maintenance of accountability and administration
needed for the renewal process
25.
REPORT RECOMMENDATIONS
6. Governance Structure
⎻ Industry self-governance essential to industry support
⎻ Modeled after proven effectiveness and impact of BIAs and TPAs,
driven by nonprofit tourism program management
⎻ Clear continued separation of state funds and assessment revenues
26.
ANNIE MCGRATH
STATE GOVERNMENT AFFAIRS
LEONARD & KOLAN
27.
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
28.
SUPPORT OF FIRST BILL (SSB 5492)
• State Government • Greater Spokane, Incorporated • Visit Skagit Valley
• Washington State Legislature • Port of Seattle • Visit Vancouver Washington
• Governor Bob Ferguson • Greater Seattle Business Association • Visit Tri-Cities
(GSBA) • Visit Issaquah
• Trade Associations • Tri Valley EDD • Visit Chelan County
• WSDMO • Wenatchee Chamber of Commerce • Visit Gig Harbor
• Washington Hospitality Association • Leavenworth Chamber of Commerce • Okanogan Country
• Washington Wine Institute • Expedia • San Juan Islands Visitors Bureau
• Washington Brewers Guild • Seattle North Country
• Washington Retail Association • DMOs • Discover Lewis County
• Maritime Wash. National Heritage Area • Visit Seattle • Woodinville Wine Country
• Inspire Washington • Visit Spokane
• Visit Bellevue • Sports Commissions
• Business Associations, Trade and • Yakima Valley Tourism • Seattle Sports Commission
Corporate • Visit Tacoma • Spokane Sports
• Association of Washington Business • Visit Walla Walla • Snohomish County Sports Commission
(AWB) • Explore Olympia & Beyond • Yakima Sports Commission
• Washington Economic Development • Explore Seattle Southside • Tri Cities Sports Commission
Association (WEDA) • Olympic Peninsula Visitors Bureau
• Seattle Metropolitan Chamber of • Visit Bellingham
Commerce • Visit Kitsap
29.
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- Original
- app.leg.wa.gov