Washington House Democrats

House bill boosts tourism promotion

Economic development bills to retain and create jobs pass House

March 8, 2007

OLYMPIA – Tourism, a multi-billion dollar industry, received a major boost today as the House passed a bill sponsored by Rep. Kelli Linville (D-Bellingham) to invest in tourism promotion and improve oversight of how state dollars are spent on marketing Washington as a destination.

The tourism bill joined a slew of other economic development bills passed by the House today, with the aim of improving the business climate, investing in the state, retaining and creating jobs.

“Every community in the state, from my home in Whatcom County to Pullman, benefits from out-of-state tourists and the money they spend,” said Linville. “We must improve the marketing of our beautiful state and support our tourism industry, especially as we get closer to the 2010 Olympics.”

The tourism bill (HB 1276) eliminates current departmental tourism advisory committee in favor of a Governor-appointed 19-member Washington Tourism Commission. The Commission members, including representatives from all segments of the diverse tourism industry and legislators, will have greater oversight in the development of the state’s tourism strategic plan and marketing plan.

The public-private tourism partnership creates a competitive local tourism grant program to assist local tourism related efforts. It also provides an increased source of funding through transfers from the State Convention and Trade Account: $4 million per year deposited into the Tourism Enterprise Account which must be fully matched by private contributions (cash or in-kind) beginning in 2011.

Washington’s fourth largest industry, tourism brings an estimated $13 billion in direct spending to the state, and represents over 146,000 jobs. Despite the importance of tourists to the economy, Washington lags behind the rest of the nation in tourism promotion, ranking 47th among the states in spending on marketing.

An independent study showed that the state currently earns only $1.30 in state and local revenue for every $1 put into tourism marketing. Under Linville’s bill, the increased investment in tourism could return $3.40 for every dollar in tourism promotion.

Other key economic development bills passed include:

Local and regional economic development support (HB 1178): About 16 years ago, “Team Washington” mobilized Economic Development Councils as a way to retain and attract jobs. This legislation, requested by Gov. Gregoire, updates and bolsters those organizations and adds accountability for new funds.

Innovation Partnership Zones (HB 1091): This new idea promotes the connections between research and business, especially in our high-tech and biotech clusters, but may be applicable to many areas and industries.

Lower unemployment insurance rates for start-up businesses (HB 1278): This bill passed last night makes the unemployment insurance contribution rate for new employers equal to the rate that is the average for their industry. In the past, new employers were charged slightly more than the industry average because they typically have a higher rate of failure, and therefore, more employees seeking benefits.

Linville, chair of the Appropriations Subcommittee on General Government and Audit Review, is also promoting Small Business Development Centers in the proposed budget. If funded, SBDCs, proven organizations that help businesses succeed, would receive state monetary support.

Another economic development bill is scheduled for House floor action: local infrastructure financing tool (LIFT) expansion (HB 1277). Last year, Linville sponsored this ground-breaking tool for economic development. This legislation expands the number of local governments that can take advantage of LIFT with an additional $2.5 million in the competitive program, and makes it easier to use the tool to build pipes, roads and other crucial infrastructure.

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Information:

House Bill 1276 (public-private tourism partnership): http://apps.leg.wa.gov/billinfo/summary.aspx?bill=1276&year=2007 

Tourism impact report: http://www.experiencewashington.com/images/pdf/R_ImpactStatewide2006.pdf 

Staff: Larry Clark, 360.786.7214, Clark.Larry@leg.wa.gov