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Tourism Marketing: Pure Michigan $21M Plan Opposed

Monday Jul 6, 2009

In an effort to build the tourism industry after the failure of the automotive industry, the Michigan government is set to establish a $21M plan to boost the tourism industry. The plan, House Bills 5017-5018 and 5088-5089 and Senate Bills 619 and 620, creates the Michigan Promotion Fund, which would have two revenue sources: New tourism-generated sales tax revenue and a $2.50 daily assessment on vehicles rented at or near airports, as well as at hotels, convention centers, passenger train stations, bus terminals or harbors. According to Crain’s, Local governments don’t like the capture of sales tax revenue because they say it will hurt revenue-sharing, and Enterprise Rent-A-Car, which includes the National Car Rental and Alamo Rent A Car brands, are fighting the vehicle rental fee.

But others, such as Michigan Lodging and Tourism Association President and CEO Steve Yencich, said the legislation is a creative approach to a chronic problem with promotional funding and could produce benefits even for its opponents.

A $2.50 fee seems miniscule in relation to a $21M marketing boost to the tourism industry–so hopefully the hang up won’t last and tourist will flock to the sandy freshwater beaches of Michigan.

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