Don't skimp on tourism funds

Is our county council really going to give away future investment in conventions and tourism for the next 30 years to fund a soccer stadium in Sandy?

In 2005 the original 1.25 percent transient room tax increase was specifically earmarked for the Salt Palace Convention Center expansion and for the garage at the South Towne Exposition Center and had a definitive end date of 10 years. The expansion of the Salt Palace clearly represented good business sense for Salt Lake and the state.

Without the expanded Salt Palace, Salt Lake would not have been able to accommodate more than $300 million in convention business. As a direct result of this financing, the Salt Lake Convention and Visitors Bureau estimates that the confirmed additional conventions will have an economic impact on Salt Lake of $210.6 million.

There are another 13 tentative groups booked, representing another $93 million for a total economic impact of $303.6 million, which greatly exceeds all expectations for this direct return on investment.

Last year, travelers spent $5.45 billion in the state. Traveler spending was estimated to have generated $433 million in state and local tax revenues, which works out to about $494 per Utah housing unit. These numbers mean more than 119,999 Utah jobs in travel and tourism-related industries.

We are not sure the general public understands that funding for a new soccer stadium, in effect, ties up any future investment in tourism for 30 years. As it relates to the new soccer stadium, entertainment and recreation are not typically a great return on investment as they relate to out-of-state travel.

We feel that as an investment the stadium will not drive sufficient additional travel to justify significant funding from the TRT. Any additional convention or tourism-related investment within this 30-year window will now require some sort of additional funding on top of the already increased TRT.

The hospitality industry is not opposed to the 1.25 percent additional TRT and don't see it as a burden on the industry. We find it prudent and appropriate that the TRT be kept for its original intended purpose. We are simply asking that at least one-third of the increased TRT for Salt Lake County be reinvested in convention and tourism marketing, promotion and sales by the Salt Lake Convention and Visitors Bureau and toward a capital reserve for the South Towne Exposition Center and the Salt Palace Convention Center. Investment in convention and tourism shows a consistently good return on investment for years.

Although the industry is healthy now, largely due to the investment in tourism promotion and necessary infrastructure, if we take away promotional dollars, it could have a very negative impact on a major economic resource for the state in the future.

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Steve Lundgren is vice president of the Salt Lake Valley Lodging Association and is area manager for Marriott International, which includes oversight of 13 hotels in Salt Lake County. Lundgren also serves on the Executive Committee of the Salt Lake Convention and Visitors Bureau.