“We were disheartened today to hear that the more than 30-percent cut to funding of VISIT FLORIDA means they will have to cut payroll by more than $3 million, resulting in personnel cuts and job losses. [Read more…] about Statement by FADMO regarding looming job cuts at VISIT FLORIDA
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FADMO statement regarding the future of VISIT FLORIDA
Statement by the Florida Association of Destination Marketing Organizations (FADMO)
Regarding the future of VISIT FLORIDA
[Read more…] about FADMO statement regarding the future of VISIT FLORIDA
FADMO Statement Regarding Gov. Scott's Call for Special Session
Statement By: Gil Langley, Chairman, Florida
Association of Destination Marketing Organizations
“Florida’s tourism industry is greatly encouraged by today’s announcement that Governor Rick Scott has called the Florida Legislature together for a special session to discuss measures and funding related to tourism promotion.
Restoring VISIT FLORIDA’s funding to $76 million and removing restrictions that hindered operations will not only keep tourists and revenue flowing into Florida, it will preserve the jobs of the 1.4 million Floridians who count on tourism for their paychecks.
We applaud the leadership of Governor Scott, Senate President Joe Negron and Speaker of the House Richard Corcoran and their efforts to ensure Florida’s tourism industry remains a significant driver of Florida’s economy and workforce.
This is an incredibly positive step forward. We look forward to working with legislative leaders in the coming week to bring Florida’s tourism promotion budget back in line with competing states.”
ICYMI: Post-Session Reflection on Tourism Marketing
By Gil Langley, Chairman, Florida Association of Destination Marketing Organizations
Last week, Governor Scott announced record-breaking tourism numbers in the Sunshine State. It may be the last time for a while. Ignoring extensive research, case studies and pleas from travel industry constituents across the state, the Florida Legislature slashed funding for Visit Florida by a crippling 67 percent – recklessly jeopardizing the tourism industry’s leading role as a generator of jobs and government revenues.
A $25 million budget to market Florida, one of the world’s top travel destinations, is not conducive to success on any front – job creation, revenue increases or lower taxes for Florida residents. By cutting off funds for advertising, marketing and promotion, Florida will essentially surrender the gains made over the past several years while global competitors steal market share.
Contrary to assertions made by some elected officials, vacation destinations do not sell themselves. Every great product needs to make potential customers aware of the benefits their product offers – and why it is a better choice than the alternative. That is why California spends more than $100 million every year to market their state, even with well-known major attractions such as Disneyland, Hollywood, the Golden Gate Bridge and great beaches.
Tourism is an incredibly competitive industry. Not only are we competing against 49 other states (some with eight-figure marketing budgets), we are battling destinations across the globe to get the attention of potential visitors. Mexico, the Bahamas and Cuba are thrilled Florida’s travel marketing budget has been reduced, allowing them to gain market share while Visit Florida goes silent in the marketplace.
These cuts were approved despite warnings from experts in government and the private sector. Detailed case studies about states like Colorado and Washington (who cut tourism marketing, only to lose jobs, revenues and market share) provided a cautionary tale ignored. Prestigious organizations such as Florida TaxWatch conducted economic studies demonstrating Visit Florida’s return on investment, proving investing in tourism is good public policy.
Our elected officials have demonstrated they know the importance of consistent messaging. Legislators raised $73 million for election campaigns in 2016 – even though 57 seats were uncontested. They spent money to keep the voters informed of the job they do, and explained why they should continue to serve. Reminding vacationers of why Florida is a great choice for their family follows the same principle.
The decision to slash tourism marketing funding and create barriers to Visit Florida’s success negatively impacts every single Floridian. Less marketing means fewer visitors and fewer visitors means less tax revenue to fund necessary public projects such as schools, beaches, parks, roads and other infrastructure.
Even if the entire $61 million cut were dedicated to other programs, the impact would be minimal. For example, according to FDOT, $61 million would construct only four miles of urban interstate – in a state with nearly 1,500 miles of interstate. On a larger scale, the $61 million cut from Visit Florida’s budget would fund state government operations for just five hours out of the year. Invested in marketing the state, however, those same funds would generate over $160 million in new state and local tax revenue that could support transportation, education and senior services. It is also important to note Visit Florida represents a miniscule portion of the state’s budget, yet any decrease in funding will result in significant ramifications. Even if Visit Florida was funded at Governor Scott’s recommendation of $100 million, 98.7 percent of the state’s budget would be left for other priorities.
I live and work in the small coastal community of Amelia Island, a community that is twice as dependent on tourism as the average Florida county. We are especially concerned about the budget cuts’ impact to rural communities. To a degree, large urban destinations, mega resorts and world-famous theme parks can rely on global brand recognition, but many of Florida’s hidden gems will be left without the resources to market themselves. For Nassau County, the potential impacts are frightening.
Tourist spending generates 37 percent of the sales taxes generated here. Over 25 percent of the work force have jobs in the hospitality business. Tourist spending provides a net gain of $40 million to County government, saving every household in the County $2,748 in state and local taxes. If tourism declines, it means fewer jobs, fewer services and potentially increased taxes on residents.
Just as in Nassau County, other hardworking Floridian families will suffer, too. A TaxWatch study analyzed the economic impact of the new tourism promotion budget, and found that reducing funding to $25 million means a loss of at least five million tourists. With a five percent tourism downturn, every household in Florida would have to be taxed an additional $1,535 a year to replace the lost state and local taxes generated from visitor activity. Perhaps even more disheartening are the 70,000 jobs that will be lost due to fewer visitors.
Our hope is that before tourism losses mount in 2018, legislators will reverse course and fully fund a marketing effort that maintains our status as the Earth’s most popular family destination. If not, jobs will be lost, small businesses will be harmed and tax revenue will be diminished. Objectively evaluating the return on investment clearly proves tourism works for Florida – and supporting it financially is a wise move for all our citizens.
Gil Langley is chairman of the Florida Association of Destination Marketing Organizations, the statewide association representing county tourism promotion agencies.
FADMO statement regarding VISIT FLORIDA funding
Statement by Gil Langley, Chairman of Florida Association of Destination Marketing Organizations regarding the 2017 legislative session
“Along with the 1.4 million Floridians employed by the tourism industry, I am extremely disappointed in the outcome of the 2017 Legislative Session. A $25 million budget for tourism marketing, coupled with a wealth of bureaucratic red tape, hinders VISIT FLORIDA’s ability to do its job. With only $25 million dedicated to promoting our state, there’s no way Florida can stay on the same playing field as states like California. Not to mention, VISIT FLORIDA’s efforts are what keeps tourists from flying over Florida to Mexico, the Bahamas and now Cuba.
Lawmakers in Tallahassee neglected to consider the facts – state and local tourism promotion is the only reason Florida has been able to maintain its status as a top destination in the increasingly competitive industry. Thanks to tourism, Florida brought in $108.8 billion in tourism-related spending in the last fiscal year. Unfortunately, the Sunshine State’s future does not look as bright. With a 5 percent tourism downturn, our state will lose more than $324 million in sales tax revenue and 70,000 jobs. Furthermore, the funding reduction will have a disproportionate impact on small rural counties throughout the state – without the resources to market themselves, many of Florida’s hidden gems will experience economic harm.
Other states like Colorado, Washington and Pennsylvania serve as a warning of what’s to come. We’ve seen this same scenario play out in other states, and the end result is always the same: state revenue goes down, people lose their jobs and that state’s market share goes down.
Although a 67 percent funding reduction and a new stringent structure are enormous setbacks for our industry, we will continue to advocate for tourism promotion in the months leading up to the 2018 Session. As Legislators watch while jobs are lost, small businesses are harmed, and tax revenue is diminished, I hope they will rectify their mistake next year.”