It’s no secret that tourism is a significant economic driver in Connecticut. But we need to be reminded of its power. According to the state’s Office of Tourism, 82,500 jobs are supported by the tourism industry with more than 120,000 total jobs in the tourism sector. The Chamber of Commerce of Eastern Connecticut believes these numbers are actually far greater, especially when you consider all of the outside industries that touch tourism. This is includes retail, lodging, restaurant, recreation, real estate, and transportation.Business Express: Is Connecticut Tourism on the Offense or Defense?
In 2015, according to Tourism Economics – an Oxford economics company, travelers to Connecticut sustained a total of 121,527 jobs, with associated income of $5.2 billion, as traveler-supported employment represented 5.3% of all employment in the state at the time. In terms of taxes, travel in Connecticut generated $910 million in state and local taxes, and $778 million in federal taxes. And if you were to remove state and local taxes generated by travelers, each Connecticut household would have needed to pay $675 to fill the gap in 2015.
So why would anyone not want to invest in tourism knowing that it will return millions more in spendable dollars?
As one of the state’s largest employers, tourism should be seen as an investment – a real solution to the state’s economic woes.
Many experts have measured the rate of return for Connecticut’s investment in tourism as a 3:1 ratio. This means that for every $1 of tourism spending, the state receives $3 back in the form of tax revenue. With nothing in the state’s portfolio that has the potential to return more cash, or be as reliable an investment as tourism, any financial investor would maximize this opportunity today.
In fact, the tourism industry in Connecticut pours $1.6 billion into the state’s treasury, and a conservative projection shows that proper re-investment would pump another $82 million, netting an extra $57 million in cash for urgent needs like healthcare, transportation, safety and social services.
While this current administration and legislative body has done a fine job at proposing increases to tourism funding, it’s still not enough, especially when you see what our competition is doing.
Neighboring states like New York, Massachusetts and Rhode Island are increasing their tourism marketing dramatically, and they are going to eat our lunch. They’re starting to spend considerably more to lure away tax revenue from our state.
As a member of the Connecticut Metro Chambers, which includes the eight largest Chambers of Commerce in the state, the Chamber of Commerce of Eastern Connecticut is urging state lawmakers to pass legislation that creates a sustainable funding source for the industry in the state.
In a recent letter to Senators Paul Formica and Catherine Osten, the CEOs of the Metro Chambers expressed their ongoing support and optimism for the industry, and asked that the State Legislature continue to provide full funding for this important segment of the state’s economy.
The Chamber believes now is the time to act. Connecticut’s under-funded tourism sector needs immediate attention before the state is left behind in economic growth and vitality.
At the very minimum, the General Assembly should approve the Governor’s proposed tourism budget of $8.3 million. While it’s a far cry from the $15 million needed to truly support the industry and more adequately compete with our neighboring states, it’s better than leaving us empty handed.
“By harnessing the power of tourism, we’re going to change the tide in favor of Connecticut’s future, but we need the help of our State Legislature.” said Tony Sheridan, President of the Chamber of Commerce of Eastern Connecticut. “Along with our colleagues at the Metro Chambers, we implore Connecticut lawmakers to act quickly and commit to tourism in the state.”
