Tourism funding for Grand Strand pushed

State lawmakers have taken the first step to renew funding for a program that has given millions of dollars to the Grand Strand for tourism marketing, area legislators said.

The House Ways and Means Committee has tentatively budgeted $5.4 million in 2011-2012 for the destination-specific marketing program, commonly known as the $2-for-$1 matching program, said Rep. Tracy Edge, who sits on the committee. That roughly equals the amount of funding the program received in the last budget.

The program matches every $2 of privatelyraised money for tourism promotion with $1 in public funds. The money goes to a destination's designated marketing organization, which is the Myrtle Beach Area Chamber of Commerce on the Grand Strand.

The inclusion of funding for the program indicates that tourism's stature as a state industry is growing, whereas the state has traditionally emphasized incentives for manufacturing, Edge said. Gov. Nikki Haley has also voiced her support for the program.

"A little effort toward tourism marketing and promotion goes a long way toward results, and a small investment pays off in large returns compared to the incentives we've had to offer manufacturing in recent years," Edge said.

Edge, R-Myrtle Beach, said he's confident the funding from the program won't be changed in House floor debates on the budget, which begin next week.

Sen. Dick Elliott, D-North Myrtle Beach, said the Senate will likely set aside at least $5 million for the program and could allot as much as $10 million. The Senate isn't as far in its budget process as the House, said Elliott, who sits on the finance committee. Any discrepancy between House and Senate budgets would be resolved in a joint conference committee on the budget later this year.

The S.C. Department of Parks, Recreation and Tourism administers the program and has awarded roughly $30 million to the Myrtle Beach Area Chamber of Commerce, making it the largest recipient of money since the program's creation in 2006. Charleston, Hilton Head Island and Columbia have also received money under the program.

There is no recurring item in the state budget for the program, so the amount of money for it can fluctuate each year. The program received about $10 million in 2009.

Elliott said he will push the Senate to allot $10 million for the program this year. The program is vital to the state's economic recovery and the benefits - drawing more tourist spending and increasing tax revenue - will be more immediate than, for example, investing in education, which can take years to yield results, he said.

Gaining funding for the $2-for-$1 program was a top priority on the Myrtle Beach Area Hospitality Associations' legislative agenda for 2011, President and CEO Stephen Greene said.

"Especially coming off last year and such strong growth, it's more important than ever ... that we get as much advertising and promotion out there for a strong tourist season this year," he said.

The marketing dollars will help the Grand Strand reach its ambitious goals for 2011, including the Myrtle Beach International Airport's goal to serve 1 million passengers, Greene said.

South Carolina relies on tourism, so not funding tourism marketing is like not putting gas in a Ferrari, said Rich Harrill, director of the Sloan Foundation Travel and Tourism Industry Center at University of South Carolina. Marketing brings more tourists who spend money and contribute to the amount of tourism-related taxes the state collects, he said.

"We need to fill that tank up because it's a good [return on investment]," Harrill said.

Myrtle Beach Mayor John Rhodes said budgeting money to the program is a sign that Columbia lawmakers care about whether the Grand Strand succeeds.

"They see the dollars that we're generating back to the state," Rhodes said. "You know, we're all in this together."

Haley said she supported for the program in a speech last month at the 2011 S.C. Governor's Conference on Travel and Tourism in Charleston. More stability should be brought to the program, she said, implying the program should become a recurring part of the budget. Rep. Thad Viers, R-Myrtle Beach, said earlier this month that, although a recurring budget item would be ideal, it appears unlikely that legislators would pass it this year.