Tuesday, September 1, 2009

Hospitality & Tourism – the Steam in the Economic Engine

September 2009
By Dale J. Venturini
President & CEO, Rhode Island Hospitality Association

I have long been saying, and many of you are in full agreement, that hospitality and tourism play a huge role in a state’s economy. Our industry represents life’s necessities – eating, drinking, shelter, as well as a multitude of life’s little pleasures including movies, attractions, museums and beaches. However, the bottom line is that our industry gets people out there spending money to support the local economy.

Be this as it may, it seems that no matter where you live or what percentage of your state’s economy is comprised of revenue from our industry – lawmakers are continuously trying to slash tourism and tourism-related dollars. How many of you are hearing that your tourism budgets or tourism agencies are being stripped to the bone?

The industry does a fantastic job of bringing in revenue to state coffers, however, we cannot do it alone. We need the support of our state agencies to help us target our message and attract the right type of consumers – both business and vacationers.

In Rhode Island, more than 60,000 residents get a paycheck from a hospitality or tourism job and with our unemployment at the 2nd highest in the nation at 12.4% - the worst our state has seen in more than 30 years - the hospitality industry is a vital economic generator and job creator.

Unfortunately, even though restaurants and hotels provide millions of dollars to Rhode Island every year in the form of meals and beverage taxes and lodging taxes, our industry is often overlooked as one of mediocre or low-paying jobs, when in fact we are the 2nd largest industry in the state.

According to the Providence Journal (RI Unemployment Tops 12%, June 19, 2009) Leonard Lardaro, professor of economics at the University of Rhode Island, said in past recessions growth in manufacturing and construction brought the State out of the economic doldrums. However, that’s a thing of the past. Now, the growth engines for the state are tourism, healthcare and nonprofits.

Simply put, we cannot afford to cut dollars allocated for tourism growth. And, I know that we are not alone – how many of you out there throughout New England are facing a similar situation? The good news is that studies all seem to point to the fact that across the globe, travelers are opting to stay in their own backyards for leisure travel. In fact, recent articles on domestic tourism all report that going abroad – regardless of your country of origin – seems to be falling.

Therefore, it is vitally important that our tourism dollars are keenly focused on drive locations and easy flight paths, trying to capture those travelers who are still willing to/can afford to experience some time away from home.

The bottom line is that we need to continue feeding the hospitality and tourism industry so that we can continue to create jobs, keep our local economies moving, and ultimately help to restore consumer confidence.

Right now, we New Englanders are perfectly positioned to take advantage of what is a prime tourism season – fall. In all six states, we can boast beautiful foliage, scenic trails and hiking, wonderful restaurants, and rustic or luxurious accommodations.

The key is to work together with your own tourism engines to strengthen your message and ultimately, to create that targeted outreach and appeal to bring tourism dollars into your own backyard.

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