Arizona House of Representatives Committee on International Trade Meeting Minutes and Materials

Summary

Minutes and materials of the regular meeting of the Arizona House of Representatives Committee on International Trade, Fifty-seventh Legislature, First Regular Session, held Wednesday, January 29, 2025. The minutes record that the meeting convened at 9:04 A.M. and adjourned at 9:32 A.M., with Representative Rivero as Chairman, and list the agenda, request to speak report and attendance record as attachments. The agenda lists presentations on tourism in Arizona by The Arizona Office of Tourism and on El Salvador trade relations, and one bill, HB2404, commerce authority; board of directors. The tourism slides report $29.3 billion in visitor spending in 2023 and tax revenue by county. A House staff summary states that HB 2404 adds two committee chairpersons as non-voting ex officio members of the Arizona Commerce Authority board, and a roll call vote sheet is attached.

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ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - First Regular Session

COMMITTEE ON INTERNATIONAL TRADE

Report of Regular Meeting
Wednesday, January 29, 2025
House Hearing Room 1 -- 9:00 A.M.

Convened 9:04 A.M. MINUTES RECEIVED
Recessed CHIEF CLERK'S OFFICE

R d
Adjourned 9:32 A.M. &/4 [oP

Members Present Members Absent
Representative Austin Representative Cavero
Representative Carbone

Representative Hendrix

Representative Hernandez

Representative Travers

Representative Weninger

Representative Wilmeth

Representative Pefia, Vice-Chairman

Representative Rivero, Chairman

Agenda
Original Agenda — Attachment 1

Request to Speak
Report — Attachment 2

Committee Attendance
Report — Attachment 3

Presentations
Name Organization Attachments (Handouts)
Alix Skelpsa The Arizona Office of Tourism 4

Committee Action
Bill Action Vote Attachments

HB2404 DP 90-01 5,6

Christie Hudson, Committee Secretary
January 31, 2025

(Original attachments on file in the Office of the Chief Clerk; video archives available at http://www.azleg.gov)

COMMITTEE ON INTERNATIONAL TRADE
January 29, 2025
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ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature - First Regular Session

REGULAR MEETING AGENDA

COMMITTEE ON INTERNATIONAL TRADE

DATE Wednesday, January 29, 2025 ROOM HHR1 TIME 9:00 A.M.

Members of the public may access a livestream of the meeting here:
https://www.azleg.gov/videoplayer/?clientID=6361162879&eventID=202501 1089

Members:
Representative Austin Representative Hernandez C Representative Wilmeth
Representative Carbone Representative Travers Representative Pefia, Vice-Chairman
Representative Cavero Representative Weninger Representative Rivero, Chairman

Representative Hendrix

e Presentations:
o Tourism in Arizona and its Economic Impact - Alix Skelpsa, The Arizona Office of Tourism, Interim
Director
o El Salvador and Trade Relations with Arizona - Luis Carlos Montoya Zuleta, Consul General of El Salvador
in Arizona

Bills Short Title Strike Everything Title

HB2404 ° x2 commerce authority; board of directors
DV

(Rivero: Aguilar, Austin, et al)

q -D-O [17, RULES

ORDER OF BILLS TO BE SET BY THE CHAIRMAN

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vc
01/23/2025

People with disabilities may request reasonable accommodations such as interpreters, alternative formats, or
assistance with physical accessibility. If you require accommodations, please contact the Chief Clerk's Office at
(602) 926-3032 or through Arizona Relay Service 7-1-1.

Page 1 of 1

Attachment_|__
Information Registered on the Request to Speak System

House International Trade (1/29/2025)

HB2404, commerce authority; board of directors

Attachment 2
ARIZONA STATE LEGISLATURE

Fifty-seventh Legislature - First Regular Session

COMMITTEE ATTENDANCE RECORD

COMMITTEE ON

INTERNATIONAL TRADE

CHAIRMAN: Tony Rivero

VICE-CHAIRMAN: Michele Pefia

DATE 01/29/25 125 125 125 125
CONVENED 9:04m m m m m
RECESSED
RECONVENED
ADJOURNED O42.

MEMBERS

Austin af

Carbone

Cavero ep®

Hendrix

Hernandez C

Travers

Weninger

Wilmeth

Pefia, Vice-Chairman

Rivero, Chairman

\INANSIAR

V Present

--- Absent exc Excused

Attachment.) __
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<= TOURISM

International Trade Commission
January 29, 2025

Agency Purpose

Mission: We drive essential
statewide tourism to stabilize and
strengthen local economies,
protect environmental and cultural
resources, create a meaningful
visitor experience and enhance the
quality of life for Arizonans
through tourism collaboration,
promotion and development.

Grand Canyon National Park

10-Year Economic Impact Trend

Growth in Tourism Economic Impact

$25.0

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2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Visitor Spending (Billions)

Year-Over-Year Growth

$29.3 billion

generated in visitor

spending in 2023

Source: Dean Runyan, Associates

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Tourism Tax Revenue Generated In Each County

County Total

Apache $10.6 Million
Cochise $32.4 Million
Coconino $168.9 Million
Gila $29.5 Million
Graham $6.8 Million
Greenlee $1.0 Million

La Paz $14.8 Million

Taxes Reduced
Per Household

$514
$673
$3,369
$1,330
$578
$270

$1,963

County

Maricopa
Mohave
Navajo
Pima

Pinal
Santa Cruz
Yavapai

Yuma

Total

$1.58 Billion
$66.7 Million
$37.1 Million
$226.9 Million
$77.9 Million
$19.5 Million
$123.9 Million

$57.6 Million

Taxes Reduced
Per Household

$934
$723
$1,026
$539
$486
$1,218
$1,155
$822

Source: Dean Runyan, Associates

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10-Year Visitation Trend

Growth in Annual Arizona Visitation
45 -

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international
| a oe ee ee ee ee overnight visitors in
2023

Annual Visitors (Millions)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Year-Over-Year Growth

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Source: Tourism Economics
Arizona 6th Most Visited by International Visitors

Aosta >

California
Florida

New York
Texas

New Mexico
Arizona

Source: Tourism Economics

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International 5-Year Visitation Trends

Mexico 5-Year Visitation Trend Canada 5-Year Visitation Trend
% 750
= 2 500
g 2 250
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Year-Over-Year Growth Year-Over-Year Growth
Mexico Visitation = 3.2 Million Canadian Visitation = 822,500

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Source: Tourism Economics
Overseas 5-Year Visitation Trends

@ 2019 ™ 2020 gy 2021 M 2022 m® 2023

79
73
66

50 45
36 32

Visitation in Thousands

28

UK Germany France India Italy South Korea Australia

Source: Tourism Economics
Mexico

Food and Cuisine

Bucket List Destination
Relaxation / Rejuvenation
General Atmosphere

Food and Cuisine
Relaxation / Rejuvenation
General Atmosphere

Visited Before / Wanted to Return

General Atmosphere
Bucket List Destination
Food and Cuisine
Relaxation / Rejuvenation

Canada

Food and Cuisine

Relaxation / Rejuvenation
Visited Betore / Wanted to Return

General Atmosphere

Germany

Visited Before / Wanted to Return
General Atmosphere

Bucket List Destination

SERTEE NE with NES

India

Shopping

Food and Cuisine

Relaxation / Rejuvenation

Connecting with Nature

Top Motivators for International Travel Per Market

France

General Atmosphere

Relaxation / Rejuvenation
Connecting with Nature

Visited Before / Wanted to Return
Food and Cuisine

Australia

Food and Cuisine

Relaxation / Rejuvenation
General Atmosphere

Visited Before / Wanted to Return

Japan
Food and Cuisine
General Atmosphere

Connecting with Nature

Shopping

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Air Service By the Numbers

Tucson International Airport

e Domestic Direct Routes - 20

Phoenix International Airport

e Domestic Direct Routes - 119
e International Direct Routes - 25

Airline Planning Cycle is Continuous

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Fleet

Product

Network Size/Scope
Facilities

Phase 1

5 Years

Markets
Crew Planning
Network Banks

Preliminary Schedule

Phase 2

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Final Schedule
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Final Market Outlook
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Phase 3

Implementation

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Air Service Strategy

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position

e Identify service targets
e Evaluate facility and fees

e Develop outreach
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e Structure an airline
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e Demonstrate to airlines how
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e Negotiate and implement

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Publicize new service,
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e Implement co-marketing
programs

e Monitor role performance

e Identity & support at-risk
routes

e Publicize success of new
routes

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ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature
First Regular Session

HB 2404: commerce authority; board of directors
Sponsor: Representative Rivero, LD 27
Committee on International Trade

Overview

Expands the Arizona Commerce Authority's (ACA) Board of Directors (Board) to include the
Chairpersons of the Senate Finance Committee and of the House of Representatives
International Trade Committee, or its successor committees, or the Chairpersons' designees.

History

The mission of the ACA is to provide private sector leadership in growing and diversifying
the economy of this state, creating high quality employment in this state through expansion,
attraction and retention of businesses and marketing this state for the purpose of expansion,
attraction and retention of businesses.

The ACA is currently governed by a Board consisting of 29 members, as follows:
1) the Governor, who serves as chairperson;
2) the Chief Executive Officer;
3) 17 private sector business leaders;
4) the President of the Senate;
5) the Speaker of the House of Representatives;
6) the president of the Arizona Board of Regents (ABOR);
7) the president of each state university under the jurisdiction of ABOR;
8) one president of a community college, appointed by a statewide organization of
community college presidents;
9) the chairperson of the Governor's council on small business, or its successor;
10) the chairperson of the workforce Arizona council;
11) one member of the rural business development advisory council;
12) the president of a statewide organization of incorporated cities and towns; and
13) the president of a statewide organization of county boards of supervisors (A.R.S. § 41-

1502).

Provisions
1. Adds, as ex officio members without the power to vote, to the Board:
a) the Chairperson of the Senate Finance Committee, or its successor committee, or the
Chairperson's designee; and
b) the Chairperson of the House of Representatives International Trade Committee, or
its successor committee, or the Chairperson's designee. (Sec. 1)

2. Makes technical and conforming changes. (Sec. 1)

O Prop 105 (45 votes) CO Prop 108 (40 votes) 0 Emergency (40 votes) O Fiscal Note

a
Initials LM Page 1 Inter: Attachment
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - First Regular Session

ROLL CALL VOTE
COMMITTEE ON International Trade BILL NO. HB 2404
DATE January 29, 2025 MOTION: YP

PASS AYE NAY PRESENT | ABSENT
Austin S

Carbone

LZ.

vo

Cavero

Hendrix

Hernandez C

V
4
Travers VA
Weninger VA
V4
V4

Wilmeth

Pefia, Vice-Chairman S
7

P

Rivero, Chairman

b 0 0
APPROVED: vw lie He SECRETARY

ows “lousy

TONY/RIVERO, Chairman
MICHELE PENA, Vice-Chairman

ATTACHMENT | 9

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