McDonnell Rolls out Sweeping Set of Proposals to Boost Virginia’s Film, Tourism Industries
LURAY - Bob McDonnell, Republican gubernatorial nominee and former Attorney General of Virginia, rolled out a sweeping set of proposals designed to boost Virginia’s tourism, hospitality and film industries in a speech today at “Discovery Day”, the annual celebration of the discovery of Luray Caverns. The Caverns were first discovered in 1868. This year marks the 131st Anniversary of the Virginia tourist attraction.
The highlights of McDonnell’s proposals to boost Virginia’s tourism, hospitality and film industries include:
· Double the funding for the Virginia Tourism Corporation. Currently Virginia trails 14 states including West Virginia and Tennessee in tourism funding
· Encourage groups based in Virginia to stay in the Commonwealth for conventions, meetings, and vacations
· Preserve another 400,000 acres of open space in Virginia, to continue to make the state the best place in America to hike, fish, hunt and be in the great outdoors
· Make Virginia the leading destination for America’s commemoration of the 150th Anniversary of the Civil War
· Convene a Virginia Tourism Summit to bring public and private sector leaders together to find new strategies to promote Virginia Tourism
· Promote Virginia as a leader in Wine Tourism
· Increase funding for the Governor’s Motion Picture Fund by $2 million
· Immediately re-open Virginia’s closed rest stops and welcome center
Speaking about his proposals McDonnell remarked, “There is no better state to visit, no better place to film. You seemingly can’t throw a rock here without hitting a beautiful vacation spot, a former President’s home, or a Civil War battlefield. We are surrounded by natural beauty, historical landmarks, and tourist destinations that are the envy of other states. History buffs come to Yorktown, Appomattox, and Arlington. Beach lovers head to Virginia Beach and the Eastern Shore. Fans of hiking traverse the Appalachian Trail. Bicyclists ride the Creeper Trail and Virginia Capital Trail. Music enthusiasts travel the Crooked Road, go to Bristol’s Rhythm and Roots Reunion, Floyd Fest and Wolf Trap. And every dollar we invest in attracting tourists is a dollar that comes back to us five-fold according to a recent study. Additionally, according to the United States Travel Association, in 2007 Virginia tourism contributed $18.7 billion in visitor spending, was responsible for 210,000 travel-related jobs, led to $1.2 billion in state and local taxes, and produced $4.3 billion in payroll. When it comes to creating the jobs and opportunities we need, our tourism, hospitality and film industries are a resource that we must do far more to utilize to their full potential.”
McDonnell continued remarking, “Right now 14 other states, including our neighbors in West Virginia and Tennessee, are investing more than us in their tourism efforts. To better compete with our immediate neighbors, and every other state, I will double funding for the Virginia Tourism Corporation over the course of my administration. We are being overshadowed when it comes to attracting movie makers to the Old Dominion. We need the jobs they create and the investments they make. To attract the movie industry, South Carolina offers a cash rebate funded at over $10 million annually while Maryland offers $1 million in cash rebates. Virginia’s Motion Picture Opportunity Fund is currently funded with $200,000. And that lack of initial funding can cost us greatly. We lost an estimated investment of $30 million when the makers of the upcoming movie “Secretariat”, about a horse from Virginia, with a director from Virginia, were enticed into shooting in Louisiana. That’s unacceptable. I will be focused on doing all we can in Richmond to get more tourists and more films into Virginia. Doing so will create good jobs and create needed revenue.”
McDonnell concluded his remarks by telling attendees at Luray Caverns, “Roughly 500,000 tourists visit Luray Caverns every year. I think we can make that a million. And that will benefit Page County, the town of Luray, and all of Virginia. As governor I will aggressively promote Luray Caverns, our Civil War battlefields, our mountains, our beaches, our wine industry, and every attraction we have. And this will help bring new jobs and more opportunities to every region of the Commonwealth.”
Bob McDonnell’s Proposals to Boost Virginia’s Tourism, Hospitality and Film Industries
Bob McDonnell will be a jobs Governor. He understands that every Virginian has been impacted by this economic downturn and that people are anxious about what the future holds. That’s why he will make his top priority bringing new jobs and greater opportunity to every corner of the Commonwealth. Virginia stands alone in the world with its wealth of natural and historic resources. No other place can boast being the birthplace of America, the Mother of Presidents, home to a world class oceanfront destination and the unparalleled beauty of the Blue Ridge Mountains, a focal point of this nation’s Civil War - all while being within 1 day drive of 60% of the U.S. population.
Tourism and film are uniquely valuable industries during these challenging economic times. Large and small tourism-related businesses across the Commonwealth contribute significantly to Virginia’s economy, providing jobs and financial benefits. According to the United States Travel Association, USTA, in 2007 Virginia tourism contributed $18.7 billion in visitor spending, 210,000 travel-related jobs, $1.2 billion in state and local taxes, and $4.3 billion in payroll. This is not just big business either - 97% of the Virginia tourism industry is comprised of small businesses.
The motion picture production industry also has enormous economic benefits for the Commonwealth. The industry has a yearly economic impact of more than $550 million, employs more than 6,000 Virginians and financially impacts an additional 2,500 workers in indirect jobs. A case study of two projects, Evan Almighty and HBO mini-series John Adams demonstrated the impact media production can have on an economy; the total economic impact was more than $200 million, 1,000 crew members were hired and 10,000 extras were hired, $4.3 million was spent on hotel and apartment accommodations in Virginia, $5 million was spent on rental cars and equipment, and more than $1 million was spent on meals. While many think of Hollywood, California when the film industry is involved, the production of films, tv shows, commercials, documentaries and educational videos has been taking place in Virginia for nearly a century. This industry brings in not only new revenue to the Commonwealth, but employs thousands of Virginians in the form of actors, producers, set construction, crew, etc.
The long-term economic impact is staggering alone, but the real impact is the proven instant revenue generation to the state and localities. Longwoods International recently conducted a study for the Virginia Tourism Corporation (VTC) and found that every dollar invested in tourism advertising had a $5 return in tax revenue alone within the same year ($2.88 returned to the state coffers, $2.12 to local governments). This great return on investment is critical during tough economic times, and leaves many wondering why we would not be investing more in this powerful economic engine.
As Governor, Bob McDonnell will be an aggressive promoter of tourism and film business in our great Commonwealth, and will use the following tools to do so:
Increase Funding for Virginia Tourism and Motion Picture Opportunity Fund
The economic impact of our investments in the tourism and film industries is substantial. There is a $5 to $1 return on tourism investments in the same year, and in 2007 alone the film industry had a $732 million economic impact in Virginia, contributing $23.3 million in state and local taxes. It is a great tool to raise revenue primarily from people out of the state and create new jobs in Virginia.
* As Governor, Bob McDonnell will double funding for the Virginia Tourism Corporation over the course of his Administration, so that it has more resources for aggressively promoting Virginia as a travel destination through internet, radio, tv and print advertising campaigns in target markets. These additional resources will also help expand on cooperative advertising, where Virginia is vastly outspent by other states, to allow localities and smaller tourism businesses the chance to participate in marketing programs they could not otherwise afford. Added resources will also be used to promote whole regions as a destination market, rather than just specific venues, which better leverages our limited dollars.
Funding to promote Virginia’s great natural resources has varied widely over the past decade - ranging from $19.5 million in 2001, down to $10.4 million in 2004. For fiscal year 2010, the tourism industry will be funded at $16.9 million - lagging behind 14 other states, including Tennessee and West Virginia, two of our neighboring competitors.
* A $2 million increase in funding will be targeted for the Governor’s Motion Picture Opportunity Fund. This fund is very similar to the Governor’s Opportunity Fund for economic development that is used at the Governor’s discretion to attract businesses to Virginia.
In recent years, many states have recognized the importance of incentives for the film industry. Virginia’s program, the Governor’s Motion Picture Opportunity Fund, was one of the first in the country but now ranks as one of the lowest in terms of funding. Whether through tax credits or cash rebates, Virginia is at a severe competitive disadvantage in attracting film production to Virginia. South Carolina offers a cash rebate funded at over $10 million, Tennessee offers $12 million for grants and Maryland offers $1 million in cash rebates. Virginia’s Opportunity Fund is currently funded with $200,000.
The Virginia Film Office reports that the state lost an estimated $356 million just last year in potential economic impact. In fact, the film “Secretariat,” which is the story of the nation’s most famous racehorse, winning the United States Triple Crown of Thoroughbred Racing, is not being filmed in Virginia because the state was not competitive enough with Louisiana. This film would have been a $30 million investment in Virginia. What makes the loss of this film and economic development opportunity even more painful is that Secretariat was from Virginia, and the Director of the film is from Virginia.
We will also enlist the help of key Virginia celebrities and film experts, like Sheila Johnson, Fred Thompson, Ron Maxwell and others to be ambassadors to Hollywood and other film production locations to recruit film business to Virginia.
Tourism Summit
We will aggressively promote a tourism summit, involving the Governor and appropriate state agencies, to better coordinate efforts among destinations across the Commonwealth and discuss marketing best practices. This improved focus on Virginia’s treasures will generate renewed interest in many key landmarks such as Jamestown, Mt. Vernon, the State Capitol, Ferry Farm, Luray Caverns, Montpelier, Monticello, Washington D.C., and destinations such as Virginia Beach, Appalachian Trail, ski areas, and Virginia’s lakes and rivers.
Experience and Expertise on the VTC Board
Currently, the only statutory requirement regarding representatives of the VTC is geographic - i.e.- making sure the makeup of the Commission is geographically balanced. Representation from the various regions of the Commonwealth is essential; however, the most important factor to consider should be a person’s experience and background in the tourism and hospitality industry. As Governor, Bob McDonnell will appoint experienced tourism leaders to the VTC Board of Directors to ensure that we have firsthand knowledge guiding the growth of the tourism industry in the Commonwealth.
“Use Virginia First”
Bob McDonnell supports Governor Kaine’s Executive Order 14 in 2006, requiring all executive branch agencies, institutions of higher education, board and commissions to recruit national and regional organizations to hold their conferences and conventions in Virginia. This is an important directive that Bob McDonnell will continue and more aggressively pursue as Governor. He will encourage all state funded organizations to “use Virginia first” for travel, conferencing and events - both small and large. He will also partner with Virginia’s trade associations and encourage them to conference in Virginia, rather than going outside of the state. We are blessed to have many beautiful and well equipped conferencing destinations in Virginia, from the Homestead in Bath County, the Dulles Expo Center in Chantilly, the Hotel Roanoke and the Virginia Beach Convention Center, with a new major center planed in Middleburg.
We will also encourage more “staycations,” promoting the idea that Virginians vacation right here in the Commonwealth. During a down economy, more Virginians will be able to save resources, while getting to know more about their historic and attractive home state.
Preserve Virginia’s Natural Resources
Virginia is blessed with an abundance of natural resources and historic sites that our citizens and tourists from across the nation and world enjoy every day. Our 35 state parks have thousands of campsites, hundreds of cabins, more than 500 miles of trails and convenient access to Virginia’s major waterways. Whether it’s rafting down the James River, visiting civil war battlefields, soaking up the sun on the Virginia Beach boardwalk, or discovering the nation’s largest caverns at Luray, there is something for everyone. Bob McDonnell understands the need to preserve these natural resources for their historic and educational purpose but also to maintain a strong tourism industry in Virginia. He will continue efforts to preserve these historic and treasured sites across the Commonwealth. On Earth Day 2009, Bob McDonnell committed to preserve another 400,000 acres of open space in Virginia. This will not only have significant conservation and environmental benefits, but will also increase the opportunities for outdoor recreation and tourism.
Promote Virginia as a Leader in Wine Tourism
Travel and Leisure magazine recently named Virginia one of the top five new wine travel destinations in the world. In thirty years, Virginia has gone from having less than 10 wineries to over 150 from Loudoun to Floyd to the Eastern Shore. In 2007 Virginia ranked 8th nationally in commercial grape production and 8th for bearing acreage.
It’s not only the experience of enjoying local cuisine and beautiful vineyards that brings tourists to Virginia, it’s the quality of the product. There are over 1 million visitors to Virginia wineries every year and, according to the VTC, wine tourists stay longer and spend more money per person than the average tourist. Clearly our state has an industry about whose quality we can boast and one that is also driving tourism dollars into our state coffers and reinvigorating rural economies.
* We should increase the amount of funding dedicated to the Virginia Wine Board for marketing and research. Currently, the sale of wine in Virginia generates $29,108,591 via the Wine Liter Tax, yet only 2% of that revenue makes it back to support the industry for marketing and research. Because of Virginia’s unique climate and soil, more research is needed to help identify or create wine varietals that resist mold and parasites. Moreover, an increase in marketing dollars for one of Virginia’s signature products would be returned to the state five-fold by generating sales and visits to Virginia wineries. In addition to preserving current funding levels, we should ensure that 5% of Wine Liter Tax revenues are used for promotion of the industry.
* Wine grapes are one of the only crops that yield a similar profit per acre as tobacco. Through educational efforts spearheaded by their community colleges and land grant universities, our neighboring state of North Carolina has effectively transitioned many of its former tobacco farms into vineyards. They have had such great success that their industry has more than tripled in size in less than a decade. The Virginia Department of Agriculture and Consumer Services and the Virginia Tobacco Commission should similarly help any interested former and current Virginia tobacco farmers transition to wine grapes. This could be accomplished by developing a wine grape curriculum to be taught at each of the Virginia’s community colleges located in former tobacco growing regions.
Sesquicentennial of the American Civil War
Over the course of the next administration, Virginia will commemorate the 150th Anniversary of the American Civil War (2011-2015) throughout the Commonwealth. Virginia had great success celebrating Jamestown 2007, the 400th Anniversary of the nation’s founding. The economic impact to the state was tremendous, generating $1.2 billion in sales, creating an estimated 20,621 jobs, and providing an estimated $28.4 million in tax revenue for the state and local governments.
As Governor, Bob McDonnell will partner with the VTC and the Virginia Sesquicentennial of the American Civil War Commission to promote this event for tourism opportunities around the globe. This event offers Americans and our international visitors a fantastic opportunity to better understand, discuss, and recognize this country’s greatest national crisis, while at the same time exploring its enduring relevance in the 21st century.
Virginia witnessed the greatest number of battles and engagements, so there will be many opportunities to encourage tourism in our localities with historic battlefields, like Manassas, Fredericksburg, Winchester, Petersburg and others. We will also work with the Journey Through Hallowed Ground Partnership, a creative new group that raises awareness about these historic regions from Monticello to Leesburg.
Pennsylvania has done far more to promote Civil War tourism at Gettysburg, generating millions in revenue. We have a chance to focus new attention on Virginia’s history and battlefields, generating substantial new revenue for small businesses, localities and the state.
Make Wallops Island the Top Commercial Spaceport in America
The further development of Wallops Island Spaceport will continue to attract highly-skilled and high-paying jobs to the Eastern Shore, and in other locations around the state. In addition, it will generate millions of dollars in revenue for the region and state. Creating the top commercial spaceport in the country will also increase tourism to Virginia and boost the hospitality industry - a major economic driver in Virginia.
* As Governor, McDonnell will aggressively promote space tourism initiatives. Virginia’s hospitality industry is a major economic driver, creating jobs and revenue. He understands the value of our hospitality industry and fully intends to promote our Commonwealth to ‘space lovers’. As Governor, he will also work to recruit companies to Virginia that sponsor personal/civilian spaceflights, and bring tourists to Virginia to observe launches, and visit the facilities and space education opportunities available at the Mid Atlantic Regional Spaceport (MARS).
* This will be an aggressive, coordinated effort with the Secretary of Commerce and Trade, Virginia Economic Development Partnership, the Virginia Tourism Corporation, and localities around the Eastern Shore to promote the tourism component of the spaceport. A portion of the base funding allocated to the spaceport will be focused on a coordinated marketing strategy to attract more companies to invest in MARS and create jobs in Virginia.
Re-Opening Virginia’s recently Closed Safety Rest Areas
One day before closing Virginia’s eighteen safety rest stops and one welcome center statewide, Bob McDonnell announced his support for prompt, proactive and creative measures to keep the facilities open. McDonnell further pledged that if the rest stops are closed, he will open them back up within 90 days of taking office as governor in January 2010. McDonnell called for a series of steps to be taken, all of which would help keep the rest stops open to the benefit of motorists, public safety, and Virginia’s tourism and hospitality industry:
· The immediate creation of an “Adopt a Safety Rest Stop” program with Virginia businesses, community and civic organizations, modeled on the successful “Adopt a Highway” initiative, to help keep the safety rest stops open in the near term, without providing commercial services. Leaders of the Virginia Business Council have already been contacted and have indicated their willingness to help fund rest stop operations in the near term to help the State.
· The General Assembly must explore creative financing structures to fund rest stop operations and maintenance during the 2010 session, and engage the private sector in new partnerships.
* Governor Kaine and the Virginia Department of Transportation should promptly construct a more limited budget for rest stop operations, below the current 9 million dollar annual budget. Bob McDonnell will work with local sheriffs, community corrections officers, as well as the state DOC to explore the feasibility of landscaping and clean-up of rest areas as an option for those currently sentenced to community service or eligible for work release programs. Many non-violent offenders are already successfully assigned to roadside clean-up work crews around the state.
* The CTB budget should be reprioritized to allocate the necessary money to keep the rest stops open.
Rest stops play an important economic role in Virginia, as they are a place where out of state travelers can pick up promotional material for tourism and hospitality destinations. Further, according to a recent article in the Richmond Times Dispatch, the closing of the safety rest stops and welcome centers will mean 209 contract workers and 3 welcome-center employees will be laid off, and the state will lose about $800,000 in revenue from vending machines. The rest areas and welcome center are critical as “gateways” to Virginia for promotional purposes and we must keep them open.