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Why Arizona Tourism Matters

As the state faces a deficit of over $3 billion dollars in the next fiscal year (2010) that must be closed in the current legislative session, the Arizona Legislature is looking for all possible opportunities to close this deficit. In a proactive effort to maintain funding at the highest level possible for the budget of the Arizona Office of Tourism, the ATA and our tourism partners, Arizona Hotel & Lodging Association, the Arizona Restaurant Association and the Valley Hotel & Resort Association, have launched a second phase of our 2009 grassroots advocacy letter-writing campaign.

In conjunction with this effort, we've provided a list of points to consider and talking points to use when discussing this issue. It's key that the message is a unified and powerful one.

When speaking with your Arizona Legislators:

• Thank you. We appreciate lawmakers and Gov. Brewer for preserving most of the tourism funds in the FY09 budget. Their decision will have a positive effect on Arizona residents for years. The bigger challenge, though, is FY10, currently being addressed.

• Every $1 the state invests in promoting tourism returns $8 to the state general fund. Simply put, decrease tourism dollars and you increase the state budget problem.

• Almost 80 percent of all travel spending in Arizona comes from out of state, bringing new money to Arizona. Travelers spent $19.3 billion in our state in 2007, or about $53 million pumped directly into our economy every day.

• Arizona tourism helps preserve our amazing quality of life. Preserving tourism also helps critical services that directly aid children and families in need.

• Tourism dollars have a direct and measurable impact on every Arizona resident and affect all of Arizona’s 15 counties.

• Some suggest we should just cut the Arizona Office of Tourism altogether. Colorado tried a similar approach – and quickly reversed course, realizing the critical blunder they had made. They still are trying to make up for lost ground.

•  Privatizing tourism would devastate rural areas by depriving those towns of a coordinated statewide effort.

Additionally, we posted the "Top 10, Number One Reasons Why Tourism Matters in Arizona" from the Valley Hotel & Resort Association's February Luncheon. Presented by Director of the Arizona Office of Tourism Margie Emmermann, these are (in no particular order):

Top 10, Number One Reasons Why Tourism Matters in Arizona

1. Tourism is a net revenue generator for the state of Arizona.

1. Travelers spend $19.3 billion in our state, which equates to almost 53 million pumped directly into our economy every day.

1. Almost 80 percent of all travel spending in Arizona comes from out-of-state and international visitors, which represents new money introduced into the economy.

1. Visitor spending generated 171,500 jobs, $5.1 billion in employee earnings and $2.7 billion in local, state and federal taxes in 2007.

1. Tourism is the only export industry bringing prosperity to all 15 Arizona counties.

1. Among export industries, tourism is second only to Micro-electronics in Gross Domestic Product and in generating earnings for Arizona’s residents. 

1. Tourism is the state’s Blue Chip Industry, providing reliable returns day in and day out and exerting a stabilizing and diversifying effect on the Arizona economy.

1. The taxes generated by tourism are mostly paid by visitors, not residents, but they have a direct and measurable tax benefit on every single Arizona resident.

1. Visitor volume is five times the Arizona resident base, which means visitors support many of the Quality of Life amenities that residents get to enjoy year-round, and which would not exist without the Tourism Industry.

1. Most of our tourism product can’t be outsourced – the Grand Canyon is not going anywhere.

BONUS:  For every $1 the Arizona Office of Tourism spends on marketing, we generate $180 in direct visitor spending and $14.95 in state and local taxes. – A GREAT RETURN ON INVESTMENT!

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