Washington Tourism Alliance Long Term Funding Plan

3/10/15

The WTA has developed a draft long-range, industry led funding plan, which will provide adequate funding in the future for our statewide tourism marketing and promotion program.

 

WTA Long Term Funding Principles

  • Privately governed
  • Broad-based responsibility across the tourism sectors
  • Evaluating alternative funding, governance, marketing
  • Collaborative partnership with all tourism sectors
  • Possibly some state funding, but not control

 

Critical Issues

  • Dedicated funds
  • Industry sector balance
  • Sectors have input into assessment model
  • Show Return on Investment

 

Methodology

  • Calculated the travel related proportion of annual gross revenue of each of the 5 tourism sectors: lodging 32%, food service 28%, attractions 13%, retail 19%, transportation 8%
  • Targeted a $7.5 million annual budget for tourism marketing and promotion
  • Applied those % to calculate proportion of contributions of each sector
  • Developed draft assessment proposed for industry discussion

 

Funding Sector Proportions

Sector percentages and amounts:

  • Accommodations                 32%                        $ 2,400,000
  • Food Service                       28%                        $ 2,100,000
  • Attractions                          13%                        $    975,000
  • Retail                                 19%                         $ 1,425,000
  • Transportation                      8%                         $    600,000       
  • Total                                                                 $ 7,500,000

Additional funding anticipated – Ports, Tribes, wineries, airlines, cruise lines, Chambers/Economic Development Organizations, DMOs

Draft Assessments Proposed For Industry Discussion

SECTOR                                                                                       ANNUAL ASSESSMENT

Retail (adjusted gross receipts)

  • $200,000 – $600,000                                                     $100
  • $600,000 – $999,999                                                     $200
  • $1 million – $5 million                                                    $600
  • Greater than $5 million                                                   $1,200

Attractions

  • $200,000 – $599,999                                                   $100
  • $600,000 – $999,999                                                   $250
  • $1,000,000 – $1,999,999                                             $400
  • $2,000,000 – $4,999,999                                            $1000
  • Greater than $5 million                                                 $1,200

Transportation (adjusted gross receipts)

  •  Less than $500,000                                                     $125
  • $500,000 – $999,999                                                    $250
  • $1 million – $4,999,999                                                 $1,000
  • Greater than $5 million                                                  $2,500

Food Service

  • Less than $500,000                      $ 25
  • $500,000 – $999,999                    $175
    $1,000,000 – $1,499,999               $350
    $1,500,000 – $1,999,999               $525
    $2,000,000 – $2,499,999               $700
    $2,500,000 – $2,999,999               $875
    $3,000,000 – $3,499,999               $1,050
    $3,500,000 – $3,999,999               $1,225
    $4,000,000 – $4,499,999               $1,400
    $4,500,000 – $4,999,999               $1,575
    $5,000,000 – $5,499,999               $1,750
    $5,500,000 – $5,999,999               $1,925
    $6,000,000 – $6,499,999               $2,100
    $6,500,000 – $6,999,999               $2,275
    $7,000,000 – $7,499,999               $2,450
    $7,500,000 – $7,999,999               $2,625
    $8,000,000 – $8,499,999               $2,800
    $8,500,000 – $8,999,999               $2,975
    $9,000,000 – $9,499,999               $3,150
    $9,500,000 – $9,999,999               $3,325
    Over $10,000,000                         $3,500

Lodging

  • Lodging establishments with 20 rooms and over – $.15 per occupied room

Companies are classified by their NAICS number. The North American Industry Classification System (NAICS) is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy.