Here in Montana we are very fortunate that we have a dedicated funding source for our promotional dollars. As most of you know, funding for tourism promotion comes from a 4% Lodging Facility Use Tax, commonly referred to as the “Bed Tax.” Enacted by the 1987 legislature, the tax is collected from guests of hotels, motels, bed and breakfasts, guest ranches, resorts and campgrounds. These funds are divided among the Montana Office of Tourism and our various tourism partners across the state such as: Regions, CVBs, Historical Society, Fish, Wildlife & Parks, ITRR, and others.
It is a formula that has served us well for over twenty years. We all do our jobs well – we promote Montana – which brings in visitors – who stay in our lodging properties – who pay the bed tax and our pot of promotional dollars subsequently grows. But what is fresh in our minds, as we come out of another legislative session, is that the bed tax is not immune to attempts at diluting its intent. We were fortunate this year to have had a strong grassroots advocacy campaign via Tourism Matters to Montana and a Governor who recognizes the economic value tourism brings to Montana who vetoed bills aimed at reducing the dollars available for tourism promotion.
Montana Storefront in Seattle
Not all states have been so fortunate. Washington State has become the latest poster-child for short-sighted decision-making as it relates to tourism funding. This recent article from the New York Times highlights the value of understanding the importance of embracing a long-term vision for investing in tourism promotion using Montana as an example of a state that is doing it right.
The article includes the following:
“It’s a shortsighted way of thinking,” Cathy Keefe, a spokeswoman for the U.S. Travel Association, said of the cuts in Washington. “You have to be constantly reinforcing the message. If you don’t, people will forget about you. There’s always going to be someone who’s stepping in there to take over your market share.”
And it finishes off with:
In the meantime, Montana hopes its marketing campaign, will keep the state, as those in tourism say, “top of mind.”
“If you live in the greater Puget Sound area and you don’t want to go to Montana by now, you haven’t been paying attention,” said Marsha Massey, executive director of the Washington State Tourism Office — until it closed. “Even I want to go to Montana.”
Montana Wallscape in Seattle
This is a good reminder that as vested partners in the industry we have to be vigilant about continually educating those around us about the importance of tourism to Montana’s economic health and viability if we want to preserve those valuable promotional dollars.
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[...] tourism is also a political issue requiring advocacy within the state. Montana currently has a dedicated funding source for tourism promotion, a 4% Lodging Facility Use Tax commonly referred to as the “Bed Tax.” This tax was enacted by [...]