LANSING, Mich., Nov. 22 /PRNewswire/ -- A small, almost unnoticed provision in the 21st Century Jobs package signed into law by Governor Granholm had strong bipartisan support and will provide a big boost in state tax revenues. Recognizing the need to bolster state marketing efforts, Republican and Democratic legislators worked with Governor Granholm to add $15 million for Travel Michigan's tourism promotion program.
Without the one-time funding measure, which is expected to be spent over a period of years, Michigan would have spent just $5.7 million to promote tourism. Meanwhile, competing states like Illinois and Wisconsin spend $48 and $13 million to promote travel to their states.
Studies have shown that state tourism promotion expenditures generate $3.27 in tax revenues for every $1 spent. The one-time placement of $15 million is expected to generate over $49 million in tax receipts to the state.
Tourism is Michigan's 2nd largest industry and contributes over $2.4 billion annually in federal, state and local tax receipts. However, in Michigan, overall hotel occupancy has fallen to 50th in the country; a clear indication of how poorly tourism has fared in recent years. Industry observers indicate that the measure will increase tourism expenditures, and create jobs for citizens all over Michigan.
"This was a tremendous act of bipartisanship on behalf of this state's second largest provider of jobs. We commend Governor Granholm for signing the bill and legislative leaders for supporting the measure," said Steve Yencich, Michigan Hotel, Motel & Resort Association (MHMRA) President. "This will not only benefit tourism, but Michigan's economy as a whole."
