DATE: Wednesday, March 19, 1997             TAG: 9703190545

SECTION: BUSINESS                PAGE: D1   EDITION: FINAL 

SOURCE: BY DEBBIE MESSINA, STAFF WRITER 

                                            LENGTH:   67 lines

VA. INCREASES TOURISM INVESTMENT

A big increase in its budget vaulted Virginia into fifth place among the states in tourism spending in 1996-97.

According to the Travel Industry Association of America, Virginia's $17.4-million budget ranked behind Illinois at $32.8 million; Hawaii, $25.3 million; Texas, $23 million; and Pennsylvania, $18.4 million.

The commonwealth improved its showing in this latest survey. In the previous two reports, the state ranked 10th and 11th.

The dollars allocated to the Virginia Tourism Corp. demonstrates the state's ``faith in tourism as an economic generator,'' said Martha Steger, spokeswoman for the Virginia Tourism Corp.

For each dollar the state spends in advertising, $12.45 is returned to the state and localities in tax revenue, according to state tourism officials.

Virginia's 50 million visitors spend about $10.2 billion a year and support more than 160,000 jobs. Tourism is the third-largest retail industry in the state behind food and automotive sales. It's the third-largest employer behind health and business services.

``Travel and tourism is big business, and that's why many states have big budgets,'' said William S. Norman, president of Travel Industry Association of America. ``They are making an investment. Competition is stiff, but the return on the investment is incredible.''

The importance of travel to state economies is reflected in the dramatic increase in state travel-office budgets over the years. All 50 state travel budgets total a projected $434 million in 1996-97, more than double 1994-95's $189 million. The projected 1996-97 total is a 6.2 percent increase over 1995-96.

According to the association, Virginia's budget increased 35 percent since the 1995-96 rankings.

``The General Assembly gave us some increased entrepreneurial freedom by allowing us to be a corporation and giving us some increased resources,'' Steger said.

In 1995-96, Virginia's tourism efforts were reorganized under the private Virginia Tourism Corp. Under the new structure, the state works closely with localities and private industry to promote travel in the Old Dominion.

Steger said that in the 1970s, Virginia ranked No. 1 in terms of tourism spending. Since then, Virginia generally remained in the Top 10 until the 1991 recession, when it dipped to 16th place. The commonwealth in recent years has been regaining some of its prominence.

Behind Virginia in the rankings were Florida at $17 million; Massachusetts, $16.9 million; South Carolina, $16.2 million; Louisiana, $15.4 million; and New York, $14.5 million.

Illinois, with its convention and riverboat gaming business, has remained in the top two in terms of spending for the past several years, said Dexter Koehl, the travel association's spokesman. Florida, while in the top 10, ranks surprisingly low because the bulk of tourism efforts are made by individual cities and by private attractions.

The association's 1996-97 Survey of State Travel Offices used both actual expenditures for 1995-96 as well as projected budgets for 1996-97 of state tourism offices. Actual dollars spent in each state vary somewhat from the report. The report does not include money spent by localities and private attractions. ILLUSTRATION: Graphic

Travel Budgets

The 10 states with the largest tourism budgets.

...

(5) Virginia ... 17.4

For complete copy, see microfilm KEYWORDS: TOURISM VIRGINIA BEACH INVESTMENT VIRGINIA

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