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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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Cite this document

“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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