Final
Tourism and Economic Development in Colorado
ECONOMIC DEVELOPMENT
Votes:
Action Taken:
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01:34 PM -- Tourism and Economic Development in Colorado, Mr. Eugene Dilbeck, Center for Travel and Tourism, University of Denver
Mr. Eugene Dilbeck, Center for Travel and Tourism, University of Denver, discussed his belief that the tourism industry has been declining in Colorado since the tourism tax was defeated in 1993. A summary of his testimony was distributed to the committee (Attachment E). He stated that tourism is the state's second largest industry, based on retail sales. He indicated that tourism spending in the state, adjusted for inflation, has declined. From 1997 to 2004 the state lost $1 billion in spending, which is affecting jobs in the state. Provided in his attachment is data on the economic impact of Colorado overnight visitors. Total direct employment resulting from tourism declined 14.3 percent from 1998 to 2003. He explained that the main reason for the tourism industry decline is that the state does not have an overall statewide tourism development policy, which could address the role of the public and private sectors in promoting the industry.
Mr. Dilbeck offered four steps the state could take to help address its declining tourism industry. The state cannot rely on its scenery to attract tourists and outdoor recreation is declining. The four steps include: 1) adequately staffing the Colorado Tourism Office with individuals experienced in tourism development and promotion; 2) creating a statewide tourism development policy to bring together the state's tourism-related assets and programs that it funds. He explained that the state is spending millions of dollars marketing and promoting these assets without any strategic direction or coordination; 3) creating a tourism planning and development program within the Colorado Tourism Office that forecasts, monitors, and analyzes travel trends and consumer preferences for travel experiences in Colorado; and 4) finding a consistent funding source to fund state tourism promotion.
Mr. Dilbeck continued by indicating that the highest 15 states in tourism promotion funding have experienced a growth in market share. The average tourism budgets of the six states surrounding Colorado is $9.4 million.
01:53 PM
Mr. Dilbeck summarized by stating that a primary reason for the tourism industry's decline is the absence of state leadership that includes a strong state policy on tourism development.
Representative Borodkin discussed national site selectors' perceptions of Colorado and noted that Colorado needs to improve its image by improving its marketing. She agreed with Mr. Dilbeck's recommendations.
Mr. Dilbeck discussed ways the state could start implementing his recommendations. The state could write a statewide tourism plan that involves public and private entities. He stated that bringing together of state agencies and private entities to pool resources would be beneficial. Representative Borodkin discussed the need to bring together agencies to help develop a state tourism policy plan. Mr. Dilbeck commented on the need to show the private sector that the state government is behind a statewide tourism policy so that it will invest more money in tourism.
Senator Bacon discussed the implications of TABOR on the state's ability to receive a return on its investment in tourism.
Mr. Dilbeck discussed the Center for Travel and Tourism at the University of Denver. The Center's purpose is to support and help the tourism industry grow.