Bills Could Affect Tourism in Texas

The Texas Legislature will be taking a look at several bills which could affect tourism in the state. Tourism is Texas’ third largest industry. During 1999, tourism in Texas directly supported 470,000 jobs and generated direct spending of $36.7 billion. HB 755 would create a “Tourism Fund” to which the State would allocate a percentage of the growth in sales tax revenues generated by tourist-related industries from the retail sale of tourism goods and services. The bill would not create any new taxes. One half of the money from the Tourism Fund will be distributed to the Tourism Division of the Texas Department of Economic Development to be used for domestic and international marketing and advertising (including the promotion of tourism in rural areas of the state). The other half of the money from the Tourism Fund will be distributed to the Texas Department of Parks & Wildlife, the Texas Historical Commission and the Texas Commission for the Arts to be used for marketing and advertising of projects directly related to the promotion of tourism in this state. Supporters of this legislation say that funding for tourism in Texas has not changed since it was first established in 1987. As a result, Texas’ tourism budget growth (48%) lags behind the national average (58%). Opponents say that tourism already is the third largest industry in the state and doesn’t need additional revenue that could be spent on issues such as education or health. HB 1177 would help ensure that Texas tourism is adequately promoted to people living in the state as well as those living in other states and other countries. Currently, the Texas Department of Economic Development is charged with the duty of promoting and advertising, within the United States and in foreign countries, tourism in this state by non-Texans. HB 1177 would change this so that promotion and advertisement of Texas tourism would be targeted at Texans as well as those not living in Texas. Supporters say that Texans spend a tremendous amount of tourism money outside of the state. If the diversity of Texas was promoted within the state, perhaps more of that money would stay in the state. Opponents say Texans are well aware of the state’s treasures and that the Department’s charge should not be changed. I would be interested in hearing your comments on these bills. Please write to my Austin office at P.O. Box 2910, Austin, Texas, 78768. State Representative Ron Clark P.O. Box 2910 Austin, TX 78768-2910 (903) 893-9426 * (512) 463-0474 (512) 475-3767 (fax) ron.clark@house.state.tx.us http://www.grayson.edu/district62/RonClark.html