BILL ANALYSIS Ó
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Date of Hearing: May 3, 2016
ASSEMBLY COMMITTEE ON ARTS, ENTERTAINMENT, SPORTS, TOURISM, AND
INTERNET MEDIA
Kansen Chu, Chair
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(Chu) - As Introduced April 12, 2016
SUBJECT: California Travel and Tourism Month.
SUMMARY: This measure would proclaim the month of May 2016, and
every May thereafter, as California Travel and Tourism Month to
celebrate the leadership of California's tourism industry in
growing California's economy and improving the quality of life
for all Californians. Specifically, this Resolution makes the
following findings and declarations:
1)Travel and tourism is an impressive engine for economic growth
and well-being in California as the state welcomes millions of
travelers each year to fulfill their California dream,
offering diverse experiences, including legendary natural
wonders, world-class attractions, and unparalleled
opportunities for recreation and learning.
2)Travel is a significant pillar of California's economy and is
its second largest export industry; injecting $121.2 billion
in direct annual spending that generates critical tax revenue
that the state and local economies need to thrive.
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3)California's travel and tourism industry created Visit
California as a public-private partnership in 1998 as a global
platform to market the California dream and attract visitors
from across the United States and international markets.
4)Tourism, which supports over one million California jobs, is
one of the few industries that is significant in all parts of
California, from urban to rural, and is an important hedge
against economic downturn and labor market changes because
jobs in the industry are largely hands-on and cannot be moved
overseas or replaced by technology.
5)Californians benefit from quality tourism job and career
pathways, as the industry is a leading provider of employment
for individuals looking to work while attending school or
raising a family and also provides a diverse array of
opportunities at entry, intermediate, and executive level
positions.
6)The industry continues to show leadership by implementing
innovative strategies to encourage environmental conservation
and sustainability by reducing water use, investing in energy
efficient equipment, training staff on best sustainability
practices, and educating visitors on the need to protect the
California environment during their stay.
7)Recognizes that tourism serves an important cultural purpose
by bringing individuals from around the world together to
foster an important exchange of customs, traditions, and ideas
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and promote acceptance and understanding.
8)Proclaims the month of May 2016, and every May thereafter, as
California Travel and Tourism Month to celebrate the
leadership of California's tourism industry in growing
California's economy and improving the quality of life for all
Californians.
FISCAL EFFECT: None. The Legislative Counsel has keyed this
Resolution non-fiscal.
COMMENTS:
Author's statement and support. According to the author, "The
multi-billion dollar travel industry in California is a vital
part of the state and local economies. The industry is
represented primarily by retail and service firms, including
lodging establishments, restaurants, retail stores, gasoline
service stations, and other types of businesses that sell their
products and services to travelers. The money that visitors
spend on various goods and services while in California produces
business receipts at these firms, which in turn employ
California residents and pay their wages and salaries. State and
local government units benefit from travel as well. The state
government collects taxes on the gross receipts of businesses
operating in the state, as well as sales and use taxes levied on
the sale of goods and services to travelers. Local governments
also collect sales and use taxes generated from traveler
purchases."
This resolution is sponsored by Visit California, which provides
the following information on their webpage
(visitcalifornia.com), "Visit California (also known as the
California Travel & Tourism Commission) is a non-profit
organization with a mission to develop and maintain marketing
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programs - in partnership with the state's travel industry -
that keep California top-of-mind as a premier travel
destination. According to a recent Visit California study,
travel and tourism expenditures totaled $121.2 billion in 2015
in California, supporting jobs for 1,058,000 Californians and
generating $9.7 billion in state and local tax revenues...
"California is a place like no other, a land of abundance and
opportunity-where residents and visitors alike can experience
life to the fullest. This is what distinguishes California from
other destinations?The best and the brightest industry leaders
provided invaluable assistance in creating a marketing plan that
will fortify the California brand and capitalize on emerging
opportunities. California's travel and tourism industry is
operating in a new landscape-driven by sustained economic
challenges, evolving demographics, emerging technology and
shifts in consumer travel patterns. We see this as an
opportunity to strategically market California in a way that is
responsive, creative and forward-thinking. The 2011-2016
Strategic Marketing Plan is our roadmap for getting there.
"With the time and creativity invested by the Commission's
Strategic Planning Task Force in this plan, California's travel
and tourism industry is well positioned to ensure that the
Golden State remains the premier travel destination-generating
revenues that will continue to contribute to the vitality of
California."
Background: Visit California. The Tourism Act grew out of
efforts to reverse a multi-year decline in California's tourism
industry. During the 1970s, Governor Brown closed the Office of
Tourism and withdrew funding from many tourism promotion
efforts. During Governor Deukmejian's tenure, the Office of
Tourism was reactivated. In February 1993, Governor Wilson
created the Governor's Task Force on Tourism Funding (Executive
Order W-41-93) for the purpose of "investigating various tourism
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funding methods and making policy recommendations regarding a
new, "non-tax" method of providing stable financing for
statewide tourism promotion." The Task Force, which was composed
of representatives from various California businesses, developed
the concept that was ultimately enacted by SB 256 (Johnston,
Chapter 871, Statutes of 1995) as the California Tourism
Marketing Act.
The Tourism Act authorized the establishment of a non-profit,
public benefit corporation, Visit California, to oversee the
promotion of California as a premier travel destination. The
statute became operative upon industrywide approval in 1997 and
the assessment program was initiated in 1998. In 2001, the
program was renewed by industry referendum with an 84% margin,
while in 2007 it was renewed by a 91% margin. The first full
year of assessment funding occurred during Fiscal Year 1998-1999
and between 1998 to 2002, the marketing budget was fully funded
by the Commission and the state at approximately $14 million
annually.
Visit California is comprised of 37 Commission members,
representing each industry segment (Accommodations, Restaurants
and Retail, Attractions and Recreation, Transportation and
Travel Services, and Passenger Car Rental). The Commission meets
three times a year and directs and approves the marketing plan,
expenditures and the overall strategic course for California
tourism. The assessment program is administered by the Office of
Tourism, Tourism Assessment Program which is housed in GO-Biz.
REGISTERED SUPPORT / OPPOSITION:
Support
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California Chamber of Commerce
California Travel Association
Visit California (Sponsor)
Opposition
There is no opposition on file.
Analysis Prepared by:Dana Mitchell / A.,E.,S.,T., & I.M. / (916)
319-3450