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FOR IMMEDIATE RELEASE |
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State
Rep. Tom Tangretti |
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Tourism chairman aims to fix funding formula
HARRISBURG, March 10 – The House Tourism and Recreational Development Committee is expected to consider legislation on Tuesday that would change the way Pennsylvania funds local and regional tourism promotion efforts.
The legislation, introduced by state Rep. Tom Tangretti, chairman of the committee, would repeal the 1961 Tourist Promotion Law and, according to Tangretti, would create a state funding mechanism that would provide money for local and regional tourism promotion agencies and programs on a fairer and more equitable basis.
Tourism promotion funding became a cause for concern in many areas of Pennsylvania last year when the Rendell administration announced that it would increase regional tourism funding for Philadelphia and Allegheny County by 11 percent and 37 percent respectively, resulting in an average decrease in matching grant funding of about 12 percent for the state's 49 local tourism promotion agencies.
"That decision highlighted several of the problems with Pennsylvania's current tourism funding system, which is outdated and does not reflect the changes that have taken place in the tourism industry in Pennsylvania in the past 47 years," Tangretti said. "This legislation would address several of those problems. It is aimed at providing the 47 local tourism promotion agencies and the various tourism regions in Pennsylvania with the state support they need to promote the unique natural, historical and cultural destinations local communities have to offer while maximizing the economic benefit of regional tourism marketing for Pennsylvania businesses and residents."
Tangretti said the legislation (H.B. 2302) would merge two existing tourism funding line items in the state budget, commonly referred to as Matching Funds, which are provided to the state's 49 individual tourism promotion agencies, and Regional Marketing Initiatives, which are used to promote tourism on a regional basis. Under current law, the Department of Community and Economic Development provides both kinds of grants, but there is no statutory language that governs how regional marketing grants are awarded. DCED has been shifting more tourism funding to these types of grants in recent years in recognition of what it says is the growing importance of regional marketing for areas such as Pittsburgh and Philadelphia, and the increased local funding that local tourism promotion agencies are realizing from hotel taxes.
Under the new legislation, specific percentages of the state's total tourism funding amount would be set for each program -- local matching grants and regional grants -- and the bill would define who is eligible to receive grants under each program. The bill would also create specific guidelines for the use of regional marketing grants.
"This legislation would immediately provide more funding for the local tourism promotion agencies under the Matching Grant program so that they could carry out their mission," Tangretti said. "At the same time, it would recognize that regional branding has become an important part of tourism marketing and would set aside a specific percentage of state tourism funds to continue those efforts. However, it would place more accountability on how regional funds are used and end the practice of DCED arbitrarily dictating how much and where regional tourism funding is provided.
"The goal is to get this legislation passed as part of the 2008-09 budget," Tangretti said. "If we don't, our local tourism promotion agencies stand to lose significant funding this year, and we will continue to operate without an effective and accountable plan for maximizing the state's tourism promotion budget."
Tangretti said his committee expects to consider the new legislation during a break in the House's Tuesday voting session.
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