2015 -- H 5914

========

LC001243

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

____________

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - TOURISM AND ECONOMIC

DEVELOPMENT

     Introduced By: Representatives Carson, and Morin

     Date Introduced: March 18, 2015

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 42-63.1-1 of the General Laws in Chapter 42-63.1 entitled

"Tourism and Development" is hereby amended to read as follows:

     42-63.1-1. Purpose. – (a) The purpose of this chapter is to establish an operating

program to promote and encourage tourism, to coordinate tourism activities within the state, and

to establish a fund to promote and encourage tourism; and to promote and develop conventions

and related exhibitions, meetings, banquets and other events customarily incident thereto in

facilities established pursuant to chapter 99 of this title.

     (b) Legislative findings. The general assembly hereby finds and declares that:

     (1) Rhode Island possesses many strong natural and cultural tourism assets; other states

are investing considerably more marketing resources to convince prospective visitors to choose

their destinations;

     (2) Tourism is the fourth largest private sector employer in Rhode Island;

     (3) Every two hundred twenty (220) visitors creates a new job in Rhode Island;

     (4) Each Rhode Island visitor generates about four hundred sixty dollars ($460) in

expenditures, sixty-three dollars ($63) of which goes to Rhode Island businesses that do not

directly make contact with that visitor;

     (5) A recent study estimated that visitors injected $3.4 billion into the Rhode Island

economy in 2009 alone (the last year of complete available data according to commerce RI;)

     (6) Considering that the tourism industry supported forty-two thousand (42,000) direct

and indirect Rhode Island jobs in 2009 (nine percent (9%) of the state's job base in 2009) and

generated five hundred thirty-six million dollars ($536,000,000) in state and local tax revenue,

Rhode Island risks restraining an indispensable economic and job growth opportunity by not

effectively competing for visitor dollars;

     (7) Rhode Island has limited resources to develop and build a statewide brand; other

regional competitors are increasing their investments to engage prospective visitors. Connecticut

reversed its one dollar ($1.00) state tourism allocation in 2012 by committing twenty-four million

dollars ($24,000,000) to regain momentum. Similarly, Massachusetts increased its FY 2013/2014

budget to sixteen million dollars ($16,000,000) from levels of six million ($6,000,000) to eight

million dollars ($8,000,000) in the past three (3) years and Maine has maintained a commitment

of seven million five hundred thousand dollars ($7,500,000) to nine million dollars ($9,000,000);

     (8) According to the U.S. Bureau of Economic Analysis, the tourism industry is

rebounding and many states are looking to improve performance as part of their strategic

economic growth plans;

     (9) For almost two (2) decades Rhode Island has disinvested in a statewide brand. In

order to grow its market share, the state must re-invest in a statewide brand, in addition to

continued, stable funding regional marketing initiatives;

     (10) Rhode Island's state tourism marketing budget has been reduced to around five

hundred thousand dollars ($500,000) annually, including staff;

     (11) This lack of marketing and brand presence is also an influencing factor on the state's

declining market share of national tourism expenditures. Its share of national tourism

expenditures has declined consistently since 2007. If the state had maintained a market share

similar to what it had achieved in 2007, an additional $1.78 billion of additional visitor spending

would have been attracted to the state in 2013 alone;

     (12) If the state continues with a "status quo" approach to a statewide branding and

marketing presence, continuation of the past loss of market share can be expected;

     (13) In order to reverse these trends, a new commitment to funding at a statewide level

needs to be made. A stabilized, annual funding increase is necessary to develop a sustained and

resourced brand based on the DNA of Rhode Island is critical for defining the state from others

and will have lasting results.

     SECTION 2. Chapter 42-63.1 of the General Laws entitled "Tourism and Development"

is hereby amended by adding thereto the following section:

     42-63.1-14. Additional financial support. – (a) Out of any money in the treasury not

LC001243 - Page 2 of 4

otherwise appropriated there shall be appropriated the sum of four million dollars ($4,000,000) to

the Rhode Island tourism division. These new resources will be directed towards three (3)

primary objectives:

     (1) Building a new Rhode Island statewide brand platform and associated marketing

campaign;

     (2) Refining statewide marketing resource deployment, focusing much more on domestic

advertising initiatives and aligning more closely with national norms; and

     (3) Preparing marketing infrastructure to support the more aggressive statewide position.

     (b) Coordination with the regional tourism councils. The development and

implementation of a new Rhode Island statewide marketing campaign shall include participation

and coordination with the regional tourism councils.

     (c) Reports. The Rhode Island tourism division shall report annually to the general

assembly upon the goals for the marketing and the effectiveness of the state tourism branding

program; a measurement of key performance financial indicators including relevant benchmarks

(historical, competitive, marketplace) to include Rhode Island division of tourism itemized

expenditures; expense and net income data for tourism industries, including hotels, restaurants,

historical sites, cultural activities, family activities, and beach attendance, by municipality; toll

activity on the Newport Bridge; website activity; inquiries for tourist information; and visitor

data, to include expenditure data, both direct and indirect data. The report is due no later than one

month after the start of each legislative year and shall be submitted to the following:

     (1) The speaker of the house of representatives and the president of the senate;

     (2) The chairs of the house of representatives and senate finance committees;

     (3) The fiscal offices of the general assembly.

     SECTION 3. This act shall take effect upon passage.

========

LC001243

========

LC001243 - Page 3 of 4

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - TOURISM AND ECONOMIC

DEVELOPMENT

***

     This act would provide additional four million dollars ($4,000,000) to promote tourism in

Rhode Island.

     This act would take effect upon passage.

========

LC001243

========

LC001243 - Page 4 of 4