Resolution: Funding Resolution

Release Date: Dec 06, 2011

Approved by Explore Minnesota Tourism Council on December 6, 2011

Whereas, leisure and hospitality is an $11 billion industry in Minnesota that accounts for 17% of Minnesota's state sales tax and provides over 238,000 full and part-time jobs (11% of total private sector employment);

Whereas, nationally Minnesota ranks 22nd in travel spending, 18th in travel generated employment, 14th in travel generated payroll and 9th in travel generated tax receipts;

Whereas Minnesota's tourism office budget ranks 30th nationally;

Whereas regional competitors such as Wisconsin, Illinois, South Dakota and Michigan outspend Minnesota;

Whereas Explore Minnesota Tourism works on partnerships between private-sector destinations and businesses as well as public and state-operated facilities that maximize human, fiscal and other resources; and

Whereas the Explore Minnesota Tourism Council, which provides strategic direction and represents all major sectors of the tourism industry, has set a goal to make leisure and hospitality a $20 billion industry in Minnesota by the year 2020; which will increase jobs to 271,500.

Whereas additional funding would allow the state to significantly expand its marketing, increasing advertising in current markets and expanding to new markets;

Whereas significant new revenues will be provided to the general fund from a new online travel tax;

Now therefore, the Explore Minnesota Tourism Council resolves:

To generate new sources of revenue for tourism marketing beyond state general fund, including but not limited to, dedicated taxes on tourism and partnerships with state and tribal governments and organizations.

To replace Explore Minnesota Tourism's general fund with dedication of the existing 6.2% car rental tax to Explore Minnesota Tourism for tourism marketing; and

To increase the required private sector match generated by Explore Minnesota Tourism to $3,000,000 per year from non-state sources.