State tourism officials have an offer that seems too good to refuse. Tourism in Utah accounts for $332 million in state and local taxes yearly, which means $475 less in tax obligations per household, they say. If the state increases its spending on tourism advertising by nearly 5 times, each household would save $650 per year.
But why stop there? Why not increase the advertising budget so much that none of us has to pay a penny in taxes again?
Of course, there is a point of diminishing returns. No one is suggesting otherwise. But by tourism officials' own acknowledgement, the ski industry is in a slump. The fight isn't over capturing the growth in tourism but over grabbing a share of the dollars already out there. While no one disputes the value of attracting as much of that as possible, the state has to be realistic.
It also has to be realistic about tax policy. Tourism officials want to increase their budget by $16 million, and one proposal would raise $3.9 million of that through the general fund. Hotel room taxes, restaurant taxes and car rental taxes all make sense when raising money to advertise the state. But at a time when state lawmakers are scrambling to keep the general fund balanced and still provide enough to fund overcrowded public schools, tourism spending should be a low priority.
The biggest tourism boost this state ever should have received was the 2002 Winter Olympics. It would be difficult to put a dollar figure on the value of the nightly coverage worldwide, including beautiful television shots of the Wasatch Mountain range. Rest assured that whatever this was worth, it was far more than anything the state has ever spent on its own. Yet now, officials from the Utah Travel Council say all of that is forgotten in the general public's minds. A group of skiers from Texas recently said they had no image at all of Utah skiing. Others still think of Colorado first and are unaware of the benefits of coming here.
If nothing else, the Olympic experience proves the point that advertising has its limits. The state supposedly missed out on any great post-Olympic benefits because of the slumping economy. That isn't likely to change much until the economy improves.
Colorado spends a lot more than Utah to advertise. But then, it probably spends a lot more per pupil on education, as well. Such are the realities of life in a state with unique needs.
By all means, find ways to improve the state's market share of the ski industry. Look at increases in tourism taxes. Just don't make the ad budget take money away from more worthy state needs.
