Baker's budget proposal would take $3 million away from regional tourism councils and put the money toward events celebrating the 400th anniversary of the sailing of the Mayflower.
Gov. Charlie Baker is - again - fighting with regional tourism councils over how much money tourism will get in the annual budget and how that money will be allocated.
Last year, lawmakers gave $6 million to regional tourism councils, which are in charge of marketing tourist attractions around the state. Baker cut that amount in half, to $3 million, through mid-year budget cuts.
In his fiscal 2018 budget proposal, Baker proposed again giving the tourism councils just $3 million. He would shift another $3 million to grants for events celebrating the 400th anniversary of the sailing of the Mayflower and the founding of Plymouth Colony in 2020.
"When you have something unique like a 400th anniversary, that's what you want to trumpet, because it makes you stand out from everyone else," said Secretary of Housing and Economic Development Jay Ash. "It's the same amount of money, just reallocated differently."
But tourism councils say the grants will only help certain parts of the state for a limited time, three years from now, while the councils do the job of marketing the entire state every day. "Clearly, we're disappointed," said Mary Kay Wydra, president of the Greater Springfield Convention and Visitors Bureau. "I think that it's fundamentally unfair that regional tourism isn't going to be funded at a higher level, yet one-time events will be."
Since he took office, Baker has disagreed with the state Legislature and tourism officials over how much money should be allocated for tourism marketing.
In 2015, Baker proposed an $8 million cut to state funding for the Office of Travel and Tourism. He would have nearly eliminated state funding for regional tourism councils - from $5 million to $500,000 - and turned the funding into a competitive grant program. The Legislature overrode him.
When Baker makes mid-year budget cuts, which he can do unilaterally, he tends to cut tourism spending. Total funding for the regional tourism councils dropped from $7.5 million in fiscal 2014 to between $3 million and $6 million each of the next three years, after two of those budgets were cut mid-year.
Ash portrayed the funding shift as a way to highlight a unique aspect of Massachusetts history, with at least 20 different communities, not only Plymouth, planning events to recognize 400th anniversaries.
"There's only one other place - Virginia - that has anything else close to that," Ash said. "This is where it all started, and we want to make sure we target our marketing dollars to that."
Paul McMorrow, a spokesman for Ash, said there are 35 local celebrations being planned between 2020 and 2030. McMorrow said the anniversary will provide a unique opportunity to focus national and international attention on Massachusetts and create more tourism-related economic development opportunities.
There are 16 regional tourism councils. Currently, the Greater Boston Convention and Visitors Bureau gets 35 percent of the money allocated for the councils, based on a formula. The Cape Cod Chamber of Commerce gets 8 percent and everyone else gets less than that. McMorrow argued that the funding shift is a way to allow other parts of the state to get more money through competitive grant opportunities.
But State Sen. Eric Lesser, D-Longmeadow, Senate chairman of the Joint Committee on Tourism, Arts and Cultural Development, pointed out that there will still be regional inequity. "Those 400th anniversary celebrations are not going to help Western Massachusetts, because they're oriented towards eastern Massachusetts," Lesser said.
"What we've seen time and time and time again is that the administration is not focused on tourism and cultural development," Lesser said. "And people in Western Massachusetts should be concerned about that because our economy is highly dependent on those sectors."
Lesser said with a competitive tourism market, travelers could just as easily visit Vermont or the Catskills or Mystic, Conn. as Six Flags or the Basketball Hall of Fame in Western Massachusetts.
Wydra said New York State runs ads frequently to attract visitors, which provides direct competition with Western Massachusetts. "Our products very similar," Wydra said. "They're going to gain market share and we're going to continue to lose market share as we continue to underfund tourism."
Wydra said the Springfield area needs more marketing dollars, as the MGM casino and a new Dr. Seuss Museum both prepare to open and the Basketball Hall of Fame is planning an upgrade.
"If you look at the products we've introduced into the marketplace, the timing couldn't be worse," Wydra said. Wydra said the bureau spends its money to get visitors to stay in the region longer and spend more money - which generates more taxes for the state and jobs for the region.
Suzanne Beck, executive director of the Hampshire County Tourism and Visitors Bureau, said she too is disappointed in the governor's proposal, and she hopes lawmakers will provide more money for tourism councils in their versions of the state budget.
"There's a long process between now and when the budget is approved for us to make the case that tourism is more of an economic development contributor than I think the administration's budget recognizes," Beck said.
She said the industry will lobby lawmakers by pointing out the financial benefits of the tourism industry, which generates hotel and meal taxes, jobs and spending. A 2014 study by the Massachusetts Office of Travel and Tourism found that travelers to Massachusetts generate $20.2 billion annually, $1.3 billion in state and local taxes and 135,000 jobs paying $4.4 billion in wages. The state gets more than 25 million domestic visitors a year, 2.5 million overseas visitors and 735,000 Canadians.
"No one's hitting the panic button, but everybody is disappointed that that recognition of the economic impact of this sector as a whole isn't understood at the front end and needs to be argued at the back end," Beck said.
Beck sits on the committee that is coordinating the 400th anniversary celebrations. She said she supports that funding, but thinks the anniversary celebrations should be funded separately and should not be used to undercut money for the tourism councils. She also said the $3 million may be premature, since the committee has not yet developed a comprehensive strategy for the event and how it can benefit the whole state.