Chamber President Testifies on Behalf of Tourism

February 16, 2017

Testimony of Thomas A. Sheridan, President/CEO, Chamber of Commerce of Eastern Connecticut on HB 6744 An Act Concerning A Tourism Promotion, Jobs and Revenue Account

Senators Paul Formica and Catherine Osten, 

We recognize that legislators are faced with a particularly challenging financial situation and I appreciate the difficult decisions ahead, as you struggle to respond to the demands of constituent’s seeking state assistance. Independent research has made it abundantly clear, however, that state support for the tourism industry is a revenue generating investment.  Connecticut learned this lesson the hard way only a few short years ago when the budget for the Office of Tourism was reduced to $1. As a result, Connecticut was literally wiped off the maps used to promote the tourism industry in New England.    

When confronted with an unsustainable financial challenge in the private sector, a business person is forced to make tough decisions. In order to survive, they must carefully examine their income and expenses and put their energy and financial resources where it has the best chance to sustain and grow their business. We believe that the state must take a similar approach when addressing future financial support for the tourism industry. I can assure you that the business community is eager and indeed willing offer its support as you search for the most cost effective way to advertise Connecticut. 

The great recession, coupled with the fast pace of modern communication, has required all, including those in the tourism industry, to search for the smartest way to invest their scarce financial resources to support their business.  It is now time for the state to do likewise. 

Rather than be critical of the Governor’s decision to defund the tourism Districts the eight Metro Chambers, who collectively cover the entire footprint of our state stepped forward to help fill the void. Each of us have agreed to take on various levels of tourism management activities. Each Chamber activities is dictated by the number of venues and the extent of tourism activities in respective regions. The attached letter to the COT, signed by all of the CEO’s outlines our commitment and is signed by all of CEO’s.      

Additionally, most of the State’s largest tourism venues and many small ones, have come together to help fill in where the state is unable to continue do so. We have organized the “Greater Mystic Marketing Committee” consisting of representatives from all of the major venues and a number of the smaller ones in our region. Our mission is to work in concert with the state Office of Tourism providing critical support for the industry in the region.  The recent press release (attached) outlines our commitment and provides a list of committee members and their organizations.

Finally, tourism is very important to our region and we ask that you support the following: 

1.    That you increase the advertising budget to the extent possible. An conservative request is 15 million 
2.    That administrative overhead be restricted to the degree possible 
3.    And that all available funding to the extent possible be directed to advertising the tourism industry outside the state.

Thank you for your time. I am happy to answer any questions that you may have. 

Sincerely,  
Tony Sheridan

February 23, 2017

Testimony of Thomas A. Sheridan, President/CEO, Chamber of Commerce of Eastern Connecticut 

Reference:
HB 6744, An Act Concerning A Tourism Promotion, Jobs and Revenue Account 
HB 6756, An act directing a portion of the hotel tax revenue to tourism districts. 

To: Co-Chairs: Joan V. Hartley, Scott L. Frantz, & Caroline Simmons and Colleagues, 

Thank you for the opportunity to speak with you on the important subject of tourism.  
 
I am here representing the Chamber of Commerce of Eastern Connecticut as well as the Greater Mystic Marketing Committee (GMMC), a committee comprised of tourism industry leaders and marketing specialists from the region. We respectfully ask for your support on HB6744, An Act Concerning A Tourism Promotion, Jobs and Revenue Account. We also ask that you oppose HB 6756, An act directing a portion of the hotel tax revenue to tourism districts.

We recognize that legislators are faced with a particularly challenging financial situation and I appreciate the difficult decisions you must make, as you respond to the demands of your constituents. However, independent research has made it abundantly clear that state support for the tourism industry is an investment and not an expense. It is for this reason that the Chamber asks that you give serious consideration to supporting HB 6744.  

We ask that you oppose HB 6756. As stated above state financial support for the tourism industry is very important.  However, the challenge for all of us, both in the public and the private sector is to spend our scarce resources wisely, where it has the greatest impact. Therefore, to the degree possible the available financial support should be directed to advertising outside the state and not on administrative bureaucratic overhead.  The attached documents make it quite clear that administrative costs related to managing tourism can be minimized thus freeing up our scarce resources to be directed towards advertising the state.

In summary, we ask that you keep the following in mind as you deliberate:

1.    Increase the advertising budget to the extent possible. A conservative request is 15 million.
2.    That all available funding to the extent possible be directed to advertising the tourism industry outside the state.
3.    Administrative overhead be restricted to the degree possible.

Thank you for your time. 

Sincerely,  
Tony Sheridan