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    Friday, April 26, 2024

    New study details growth in Connecticut tourism industry

    Connecticut Gov. Dannel Malloy, accompanied by other state tourism officials, announces the state's new tourism branding campaign; "Still Revolutionary" at the Old State House in Hartford Monday, May 14, 2012. Malloy announced on Thursday, March 16, 2017, that a new study, “The Economic Impact of Travel in Connecticut,” found that the state’s tourism industry generated $14.7 billion in total business sales in 2015. (Sean D. Elliot/The Day)
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    Mystic — Gov. Dannel P. Malloy was extolling the findings of a fresh study of the state’s tourism industry Thursday when a group of Texas travelers happened upon a press conference in the lobby of Mystic Seaport’s Thompson Exhibition Building.

    “Come on in,” the governor beckoned. “Spend money.”

    That’s basically the message Connecticut’s been aiming at out-of-state travelers since Malloy first restored funding for tourism marketing in 2011. It paid off in calendar 2015, the new study shows, reason enough, the governor suggested, for people to get behind his plan to spend $8.3 million on the effort in each of the next two fiscal years. The allocations would be substantially more than the $6.4 million available this fiscal year, but far less than many tourism advocates would like them to be.

    As recently as 2012, the state budgeted $15 million for tourism promotion.

    The new study, “The Economic Impact of Travel in Connecticut,” found that the state’s tourism industry generated $14.7 billion in total business sales in 2015, a 4.6 percent increase over 2013. During the same period, tourism employment grew 2 percent, supplying 82,688 jobs in 2015, the fifth straight year it generated more jobs than the year before, according to the study.

    “Based on the results of this analysis, there can be no doubt that our strategic investment in tourism is fueling economic growth,” Malloy said.

    Tourism Economics, an Oxford Economics-owned company that provides economic analysis, forecasts and consulting advice for the tourism industry, conducted the research.

    The study also found that Connecticut travelers spent $8.7 billion in 2015, up 5.1 percent from 2013 and up 3.3 percent annually over the past five years. And, it determined, travel generated $1.7 billion in tax revenues in 2015, including $910 million in state and local taxes and $778 million in federal taxes.

    Tim Sullivan, deputy commissioner of the state Department of Economic and Community Development, which oversees tourism, said the study’s findings underscore tourism’s economic impact and the need for the state to keep marketing itself. He said TV advertising, which the state has had to suspend, is crucial to any campaign.

    Malloy said he welcomes state legislative proposals to fund tourism promotion through a portion of the state’s hotel room occupancy tax, a plan championed by the Connecticut Tourism Coalition. The coalition had planned a rally this week at the state Capitol but had to reschedule the event for April 24 because of the weather.

    A bill that would enable the Mashantucket Pequot and Mohegan tribes to develop a third Connecticut casino in East Windsor also proposes to boost tourism funding through a dedicated source: a 15 percent tax on the table-games revenue the proposed casino would generate.

    The tribes Thursday issued a statement touting their support for tourism.

    “Governor Malloy is exactly right," Kevin Brown, the Mohegan chairman, said. “Tourism is unquestionably a major part of our state's economy. It supports good-paying jobs with good benefits and countless small businesses. This is an industry that deserves our support.”

    Rodney Butler, the Mashantucket chairman, said the third-casino bill benefiting the tribes would provide “upwards of $10 million to bolster tourism.”

    b.hallenbeck@theday.com

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