The REAL effects of slashing the public tourism promotion budget from the Colorado Springs Convention and Visitors Bureau

• Cutting public tourism promotion budget actually results in a significant increase in budget deficits, community hardship and is a self-defeating policy decision.
When funding was cut in the 1990s, the state of Colorado saw a decline of
7.7% of leisure travelers to the state.

Using these numbers, the 23% cut in funding to the Colorado Springs
Convention & Visitors Bureau would likely result in a 1.8% drop in leisure
travelers or approximately 98,000 fewer visitors to the Pikes Peak region.

With the local tourism industry generating over $1.1 billion in travel-
related revenues, this drop in travelers would result in $19.7 million
less in total visitor spending in our region in 2010.

Accommodation spending losses of $3.5 million

Restaurant & Other Food losses of $3.7 million

Retail/Shopping losses of $3.2 million

Transportation spending losses of $4.5 million

Arts, Culture and Entertainment losses of $3.0 million

Colorado Springs would only have to see a loss of 3,000 travelers to completely negate the savings incurred by cutting the CVB budget by $582,000. Even after reinstating tourism funding, destinations often take three or more years to recover to pre-cut travel levels. If budgets cut advertising and communications in a down period, the cost to regain the share of voice in the market once the economy recovers may cost four to five times as much as the cuts saved.

• The local tourism industry employs over 14,000 citizens.
• 25% of the City’s general fund is derived from the spending of non-residents.
• Tourism promotion has a high Return on Investment – for every dollar
invested in tourism promotion, $90 of economic activity is generated.
• Each family saves over $400 in taxes due to the economic activity of non-
residents.