Saying it would restore support to a major state economic driver that has been damaged by two years of budget cuts in Hartford, Democrat Dan Malloy on Monday proposed a $15 million campaign to market Connecticut as a tourism destination.
On a tour of southeastern Connecticut tourism-related businesses, including the Mystic Seaport Museum, the Mystic Aquarium and Cross Sound Ferry in New London, Malloy, who is seeking the governor's office, and his running mate, Comptroller Nancy Wyman, said Connecticut must revive its dormant marketing campaign to lure out-of-state visitors, and said the state's investment would be returned as much as threefold in new revenue and business activity.
"The idea that we have a zero ... dollar advertising budget is a vast embarrassment to me and should be to everyone else," Malloy said, referring to the decision to eliminate the budget for state tourism marketing in the budget approved last fall by Gov. M. Jodi Rell and the state legislature.
with greater state support, said Stephen Coan, the aquarium's president and chairman of the bureau, the group could purchase far more expensive advertising in coveted markets like New York and southern Massachusetts.
"Those are two of the most expensive markets to buy media in, and currently we have very little media exposure in those areas," Coan said. "The largest population is in those areas and therefore the potential is huge within those markets. ... We have to be investing exponentially in those markets in order to make a dent."
"What I'm proposing is not risky at all: to invest in tourism, an industry that already pays the state $1.3 billion in revenue, which we believe could be enhanced," Malloy said
Ned Lamont, looked favorably on new tourism business investment, but also said he was loath to make a commitment to new spending in what is shaping up to be a very difficult budget season next spring.
"I suppose as a politician I should say '$16 million,'" Lamont said with a chuckle. "Look, I can't out-promise Dan. I think tourism dollars, to the degree to which they generate jobs, are something that are going be very important."
"But," Lamont added, "when you've got a $3.5 billion (projected) deficit, I think you've got to be very careful about what promises you make. The first promise I'm going to make is an honest budget; that's the only promise I'm making right now."
in one vital area, tourism promotion, Malloy announced Monday that Connecticut needs to start spending more right away.
The former Stamford mayor unveiled a tourism platform that would restore state government's all-but-abandoned statewide tourism marketing budget with a $15 million investment.
In the context of an overall state budget that tops $19 billion this fiscal year, and a projected deficit for 2011-12 that approaches $3.4 billion, $15 million for tourism promotion is small change. But Malloy said that considering the annual economic activity tourism generates in Connecticut, the investment is crucial.
The last time state government studied the issue, in 2004, the Commission on Culture and Tourism estimated tourism generates over $9 billion in personal income and more than $1.7 billion in state and local tax revenue. The U.S. Travel Association estimated tourism's impact on Connecticut last year at $9.3 billion in economic activity and $1.4 billion in tax revenue.
"Connecticut's tourism and hospitality industry is a major driver of economic activity," said Malloy, who announced the plan alongside his running mate, state Comptroller Nancy Wyman, during campaign stops at Mystic Seaport and Mystic Aquarium & Institute for Exploration. "If we can make better targeted and more effective investment in this sector, it will pay our state back in countless ways. Connecticut tourism helps grow jobs, increases state revenue, and preserves the art and culture that makes Connecticut such a great place to work, live and raise a family."
Malloy's rival in the Aug. 10 Democratic gubernatorial primary, Greemwich businessman Ned Lamont, said tourism investments that could create new jobs deserve attention. But given the size of the next budget deficit, any plan to add $15 million in new spending should be accompanied by a plan to cut spending elsewhere or to raise the necessary funds. "Every $15 million promise you make you've got to pay for," Lamont said. "I'm not making any promises I can't keep."
I just disagree with Ned Lamont on this. I don't believe spending $15 million on tourism means we have to cut spending elsewhere because an investment in tourism pays for itself tenfold. As a liberal democrat, I believe the government can and should increase spending to stimulate the economy. In some cases, like the case of tourism, this spending can pay for itself. In other cases, I support raising taxes on the super rich to pay for programs that benefit the public.
Philosophically, my views on taxation and spending are just more in line with Democrat Dan Malloy, which is why I am happy to support him in this primary.