By William Sullivan
Sullivan is the Chairman of the Board, Greater Wilmington Convention and Visitors Bureau
The State of Delaware is facing a serious financial challenge as the current deficit is in the range of $400 million. Everyone in the tourism industry is aware of this, and we are all committed to driving more tourism to Delaware, creating tax revenue, jobs, and revenues for hotels, attractions, restaurants and tolls.
In the round of cuts made to the FY 2018 budget and approved by the Joint Finance Committee on May 30, 2017 funding for local tourism promotion was eliminated.
This was a decision made without discussion with the business community or the stakeholders who comprise the fourth largest sector of our state’s economy.
The Delaware Public Accommodations tax (often called the lodging tax) of 8% of hotel guest room rates, is paid by hotel guests coming to Delaware and is divided with 62.5% to the Delaware General Fund, 12.5% for beach replenishment at our amazing Delaware beaches, 12.5% for direct tourism marketing by the State Tourism office, and 12.5% that is divided amongst the local tourism promotion agencies; the Greater Wilmington Convention and Visitors Bureau, Kent County Tourism, Southern Delaware Tourism, the Rehoboth Beach-Dewey Beach Chamber of Commerce, the Bethany-Fenwick Chamber of Commerce and numerous other entities.
At the Joint Finance Committee meeting, the 12.5% that the local tourism promotion agencies receive was eliminated, an amount of $2.7 million. This money is vital to sustaining and expanding the tourism based in Delaware, and cutting will costs tax revenue, job loss and reduction of other tourism related revenues.
Everyone in the tourism industry is aware of this, and we are all committed to driving more tourism to Delaware, creating tax revenue, jobs, and revenues for hotels, attractions, restaurants and tolls.
We urge the public to support the restoration of funding to the Greater Wilmington Convention and Visitors Bureau and other local tourism and convention organizations in the State of Delaware. Tourism directly benefits Delaware families.
Visitor spending saves each household approximately $1,400 per year in tax expenditures. The return on investment is real. For every dollar that the State of Delaware invests in tourism, the State of Delaware receives $2.75 in tax revenue.
Our New Castle County tourism agency, the Greater Wilmington Convention and Visitors Bureau (GWCVB) is a revenue generator that has a proven record of attracting tourism and business visitors to northern Delaware.
The GWCVB has played a significant role in attracting over $4 billion annually to the State of Delaware in visitor spending, $2 billion of which occurs in New Castle County.
During Fiscal Year 2017 alone, the GWCVB has brought 10 major meetings/groups to New Castle County, Delaware and assisted the lodging industry with attracting 29 more. This success amounted to over 5,600 hotel room nights and an estimated economic impact of more than $1,508,220 in New Castle County.
This directly benefits the lodging industry, restaurants, retail operations and tourism attractions. These sectors of the Delaware economy are major employers, generating personal income tax, gross receipts tax, corporate income tax and property tax revenues.
