Study says Pennsylvania needs to boost state's tourism efforts

Jun. 1—Pennsylvania needs to boost state funding for tourism efforts — otherwise it's potentially leaving money on the table, according to a new economic impact study.

"In the competitive market to attract visitors, Pennsylvania does not have sufficient funds to adequately market itself," Tourism Economics said. "Considering its size, Pennsylvania spends much less than virtually all other states on state tourism promotion activities."

The study, commissioned by the Pennsylvania Restaurant & Lodging Association and many of the state's destination marketing organizations, found tourism's total impact supports more than 6.5 percent of the jobs in Pennsylvania and $4.8 billion in state and local taxes.

Only $9.1 million is budgeted for the Pennsylvania Tourism Office this current fiscal year. That amount is less than one-third of the $29.8 million Pennsylvania budgeted for state tourism marketing in fiscal 2009.

"We're being outspent by our neighboring states — other than Delaware," said Victoria Soff, executive director of the Crawford County Convention and Visitors Bureau.

The study found that for every $1 Pennsylvania saved by cutting tourism spending in the state budget, it actually lost $4.48 in combined state and local tax revenue generated from tourism spending.

"That's more than $4 in revenue for every dollar spent by the state on tourism," Soff said. "It's an economic driver. It's Pennsylvania's second largest industry. So many things fall under tourism.

"Pennsylvania marketing itself brings people to the state and passes the baton to us to bolster local attractions for people to visit," she added.

Crawford County does use the revenue from a 5-percent hotel room tax to fund local tourism efforts including a variety of publications as well as TV and radio advertising. The tax generates more than $300,000 in revenue annually toward local tourism.

The new economic study found if state tourism marketing had been more competitive, visitor spending would have been $9.7 billion higher in total between 2015 and 2019.

"Prior to the COVID-19 pandemic, travel's total impact supported 6.6 percent of jobs in the state, including 348,661 direct jobs, and $4.8 billion of state and local taxes," the report said. "The effects of the pandemic were significant, resulting in job losses that have only partially been recovered, and making the future of the sector even more critical to the future of the commonwealth.

"In the competitive market to attract visitors, Pennsylvania does not have sufficient funds to adequately market itself," the report said. "Considering its size, Pennsylvania spends much less than virtually all other states on state tourism promotion activities."

The study suggests Pennsylvania spend up to $39 million annually to reach its full tourism potential.

The Pennsylvania Restaurant & Lodging Association, along with tourism partners across Pennsylvania, wants the Pennsylvania General Assembly to fund statewide tourism at $20 million for the coming year.

Crawford County commissioners said they would support an increase in statewide tourism efforts.

However, area state elected officials said they'd need to study the issue in more detail before being willing to commit to increased funding.

State Sen. Michele Brooks, whose district includes Crawford County, said she was open to a conversation about increased funding in the upcoming state budget.

"Tourism is the No. 2 industry in Pennsylvania and I know the contributions it makes to our communities," she said. "We live in a tourist area. I know how important Pymatuning State Park and the importance of getting things like (its) Tuttle Point Campground back open; and the value of French Creek."

"My priorities are not to overspend this year," said state Rep. Brad Roae, whose district includes most of the county. "We're anticipating a tax revenue drop next year and the next year after that with a recession looming. We don't want to have to have a (state) tax increase next year and the year after that."

"We'll have in-depth budget discussions when we go back," said state Rep. Kathy Rapp, whose district includes north central and eastern portions of the county. "I'm for it if the money is there, but we've not had concrete discussions with the (House) Appropriations (Committee) chair."

Keith Gushard can be reached at (814) 724-6370 or by email at .