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Lt. Governor Joe Maxwell's Speech
to the  MACVB Convention
June 10, 2002

Lake of the Ozarks

Some people think this legislative session is one to forget.  I believe it's one to remember.  Because during this long, bloody session, we learned a lot about our government...our revenue streams...and ourselves.

If we remember what led us to this past session, maybe we're not as likely to be doomed to repeat it.

It wasn't all carnage...although it seemed that way.  There were positive outcomes.

It was a year when we finally had solid bipartisan support for an effort to fix our highways.  It was a year in which calmer heads prevailed, and we passed a budget with 45 minutes to spare on the last day of session...so we avoided a special session.

And it was a year when public debate singled out tourism as a revenue producer.

Oh, everybody in this room knows the power of tourism as a revenue producer.  And most of your friends know it.  The problem is, we think everybody knows it.

The state's budget office was faced with a crisis.  They had to balance a 19 billion dollar budget.  And they could only get their hands on roughly 2 billion dollars to move around or eliminate.

The reasons for the budget crisis were several.  The Speaker of the House called it "The Perfect Storm."  There were tax cuts in the 1990's...most notably on groceries.  And a combination of more Medicaid payments and more prison beds ate up any cushion.  A recession was coming on. 

And this was all before September llth.

It was almost exactly one year ago, in a panic to find ways to cut budgets, that the budget folks focused on tourism.   Maybe they noticed how Missouri's promotional budget had grown since the inception of HB188.  Maybe they thought tourism was one of those programs that nobody would miss.  

Against my strong protests, they swept 1.4 million dollars out of  the Tourism Supplemental Revenue Fund. 

I told the budget folks - and their boss, the governor - that it was the wrong thing to do.  In tough economic times, you don't cut your advertising.  If anything, you advertise more. 

They nodded, and understood.  But the budget staff said they had to find money they could get their hands on...

So as a tourism commissioner, I protested the first withholding of 8 percent last summer.   Little did we know that things would get much worse.

It wasn't long until the events of September 11th  changed the world.  And the tourism industry nationwide...as well as just about everything else...shut down.  We Americans found out about our resilience...and we united against our terrorist foes.  But tourism took awhile to recover.

You all know that. 

The Yankelovich Monitor reported that travel agencies lost a total of $364 million in the first week following the terrorist attacks.

St. Louis - surveyed 18 major hotels... reporting a third quarter loss of 240 meetings, 28,760 meeting room nights and over $4.6 in total revenue.  This does not count the effect on local businesses such as restaurants and retail stores.

Kansas City tourism generates $3.1B annually and was projected to lose over 15% of revenue between September and May 1.  KCCVB laid off 8 people.

Springfield - lodging was down by 12%  (vast majority in the business and tour markets).  They expected Oct through Dec to be down around 10%; attractions to be down between 5 and 10%; airport and highway travel centers were down 38.5 and 29.8, respectively.

Missouri's response?  

On October 29, we announced the new "Rediscover Your Missouri" campaign.  It just makes sense to focus a little closer to home.  And it seems to be working.  April advertising inquiries are up 8.4% compared to last year.  Total inquiries are up 34%, which includes internet orders.  In fact, internet requests are 19,886 this April compared to 3,500 at the same time last year!

You know, places like right here in the Lake of the Ozarks were hit doubly hard by the recession and 9-eleven.  That's because 11 percent of the lake's business is in state department conventions and meetings.  That dropped from 11% to 4% right after September 11.  And state government's economic picture doesn't look rosy yet...

So another part of the Rediscover Missouri campaign - one my chief of staff John Robinson devised - was to use all 16 state department information offices ...and every imaginable state of Missouri information piece - from departmental newsletters  to drivers license notices, to encourage Missourians to rediscover what's in their back yards. 

Even local governments have gotten in on the act...with mailing stuffers and inserts urging employees and customers to Rediscover Your Missouri.

We also devised a three point plan to restore tourism cuts:

1) Contact the Governor and urge him to restore tourism dollars (which I did on numerous occasions)

2) Promote the fact that Missouri tourism is a revenue producer

3) Urge the Missouri General Assembly to preserve tourism (which also required educating  legislators on the importance of Tourism as a revenue producer)

A lot of people worked on this:  My staff, several legislators and lobbyists, and Marjorie, who kept everybody in your organization well-informed.

It was an ordeal.  The whole session was an ordeal.  And after the dust cleared, tourism...all things considered...came out better than many people expected...with the general assembly restoring much of the budget.

Now we must prepare for the future.  We must work to protect the Tourism Supplemental Revenue Fund.  We must educate almost half a legislature of new faces.  And that's where you come in.

Look at this campaign as ongoing.  Never assume that new legislators understand the power of tourism.  Educate every candidate in your district before one of them eventually ends up as your representative.

And maybe we can do less damage control, and promote more positive progress in the next legislative session.  

  RETURN to the MACVB 2002 Annual Meeting Index

 

 

 


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This page last modified on 09/15/02 .