Tourism funding increase may become longterm investment

If a recent allocation of $45 million in tourism promotion monies garners a significant return on investment, the funding boost could become the state’s proving ground that garners the tourism industry longterm funding. The industry brought over $18 billion into the state last year.

According to excerpts from the story:

A major boost in funding for tourism promotion for the next few years provides the industry another test to further prove the business case for a permanent spending increase.

If the return on investment pans out during the period and tracks favorably with data for recent years -- and she fully expects it will -- Gov. Jennifer Granholm says she'll ask lawmakers to sustain the funding increase to promote Michigan nationally as a travel destination.

Research data produced by Longwoods International for Travel Michigan shows that from 2004 to 2007, every $1 spent on tourism generated $40.29 in spending for Michigan businesses and $2.82 for the state in tax revenue.

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