Tourism dollars are not local ‘piggybanks.’ Thanks to Ky Auditor for making that clear.
The Kentucky Association of Convention & Visitors Bureaus and the Kentucky Travel Industry Association applaud Kentucky Auditor Mike Harmon and his team for their audit of the City of Salyersville and for affirming that funds from local tourism taxes are to be spent for tourism purposes and under the authority of local tourism commissions. Although always important, reiterating these points now is especially relevant because tourism funds are currently in extremely short supply at a time that the need for them has never been greater.
Tourism has been a longstanding driver of Kentucky’s economy. Although severely impacted by the COVID-19 economic crisis, the tourism industry will recover and eventually resume its contributions of over $11 billion to the state’s economy, 94,500 jobs and nearly $800 million in state and local taxes. Those aren’t just statistics. They are the benefits of tourism that land squarely with the people of Kentucky.
Tourism commissions, also referred to as convention & visitors bureaus (CVBs), were integral to the industry’s past contributions and will be essential to the future recovery of Kentucky’s economy. Commissions promote their communities to prospective visitors; attract and promote events, festivals and conferences; build relationships with tour companies and other travel producers; and foster positive media coverage of their communities as travel destinations. They do all of this with a strategic mix of research, marketing, advertising and public relations that range from print to digital to broadcast to in-person communication.
Tourism commissions’ work is typically funded by a local lodging tax and in some smaller communities by a local restaurant tax. Commissions are comprised of local tourism industry and community representatives appointed by local officials. With the organization’s professional staff they design plans and actions customized to their city or county’s unique combination of tourism assets. Unlike with many taxes that are collected and redistributed in Frankfort, every community in the state has the opportunity to see amazing economic opportunities derived and driven by the money generated from these taxes.
Always important, during the current crisis the work of these commissions and their return on investment will take on exponentially greater significance in our communities’ economic recovery.
We hope that mayors and county judge executives throughout the Commonwealth heed the Auditor’s recommendations. The egregiousness of the Salyersville situation shouldn’t cloud the picture. “Payday advances” to a city contractor from tourism funds and not holding a tourism commission meeting since 2009 are blatant, if not bizarre examples not using tourism funds properly and under the authority of the tourism commission.
These and other extremes don’t change the fact that there can be more subtle misuses of tourism funds. Local elected officials cannot view these monies as a piggybank for pet projects or to finance non-tourism government services. Most local officials understand this and respect the role of tourism commissions and the importance of tourism to their communities. Most, but not all.
It is imperative that local elected officials allow tourism commissions and their professional staffs to function as the legislature intended and that the expenditure of tourism funds be for tourism purposes, also as the legislature intended. Throughout Auditor Harmon’s report, those points are made with abundant clarity and we fully agree.
Nancy Turner is President & CEO, Kentucky Association of Convention & Visitors Bureaus (KACVB); and Hank Phillips is President & CEO, Kentucky Travel Industry Association. (KTIA).