Utah Senate acts to boost tourism

Two bills designed to bolster the state tourism and hospitality industries in different ways received Utah Senate approval Wednesday.

Senate Bill 208, which would generate more than $11 million for statewide tourism promotions, partly through increases in restaurant and hotel taxes, advanced to the House on a 16-10 vote after an effort to eliminate the restaurant tax hike failed. That amendment, proposed by Sen. Howard Stephenson, R-Draper, would have cut about a third of the funding sought by the state Board of Travel Development.

By Mike Gorrell
The Salt Lake Tribune

http://www.sltrib.com/2004/Feb/02262004/business/business.asp

The legislation proposes that revenue from a half-cent increase in the hotel tax, a quarter-cent hike in the restaurant tax and a $3.5 million appropriation from the state general fund would be placed into a restricted fund to stimulate tourism through out-of-state advertising promotions.

It also would give a revamped Board of Travel Development — which would include more private sector and local government officials — greater say over how that money is spent. The legislative fiscal analyst estimated the proposed tax increases alone would generate $7.7 million next fiscal year and $9.2 million the year after.

Senators also voted 17-8 for SB60, sponsored by Sen. Michael Waddoups, R-Taylorsville, which would allow counties to impose an additional 1-cent hotel tax and a quarter-cent restaurant tax. That revenue would be used to promote development of amateur sports and expansion of convention, recreation and cultural facilities.

The Salt Lake Convention & Visitors Bureau has endorsed SB60 as a means of allowing Salt Lake County to bond for improvements to the Salt Palace Convention Center and South Towne Exposition Center in Sandy. A study released last month said the Salt Palace needs an additional 40,000 square feet of meeting space and could use a "festival hall" to accommodate large exhibitions if Salt Lake County hopes to remain competitive with other comparably sized cities in attracting conventions.

Bureau President Dianne Binger advocated both bills, noting "investing in strategic tourism promotion is just good public policy. . . . Tourism promotion provides an immediate return on investment and benefits the entire local economy."

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