Compendium of Budget Information for the 2012 General Session

Business, Economic Development, & Labor
Appropriations Subcommittee

Function

The Office of Tourism (UOT) exists to brand and promote Utah's great experiences and destinations to visitors and citizens in an inspiring way and to support and enhance economic vitality and quality of life in Utah.

Statutory Authority

Statutory authority for the Office of Tourism is provided in UCA 63M-1-1404.

The Office of Tourism is the tourism development authority of the state. It is responsible for:

promoting travel throughout the state.
increasing the economic contribution of tourists visiting the state.
advertising, promotion and publicity related to the attractions of the state as a whole.
coordinating entities involved in tourism and travel promotion.

Intent Language

Under Section 63J-1-603 of the Utah Code, the Legislature intends that appropriations provided for the Office of Tourism line item in Item 86 of Chapter 2 Laws of Utah 2010 not lapse at the close of Fiscal Year 2011. The use of any nonlapsing funds is limited to contractual obligations and support - $350,000, and film incentives - $5,417,800.

Under Section 63J-1-603 of the Utah Code, the Legislature intends that appropriations provided for the Office of Tourism, Advertising and Promotion program in Item 190 of Chapter 408 Laws of Utah 2010 and Item 119 of Chapter 414 Laws of Utah 2010 not lapse at the close of Fiscal Year 2011. The use of any nonlapsing funds is limited to advertising and promotion - $6,950,000.

Funding Detail

Office of Tourism funding is utilized mainly for staff and an advertising budget. The Office's base operations budget comes from the General Fund. In the 2005 General Session the Legislature created a Tourism Marketing Performance Fund with a performance based funding mechanism linked to increases in sales tax revenue for 21 tourism related industries. Under the mechanism appropriations from the General Fund would decrease annually. There is a small appropriation from Transportation Fund to fund Welcome Centers statewide.

Welcome Centers are located at the gateways to Utah. They provide free travel information and restrooms. Several of the Welcome Centers have kiosks with Internet access.

Sources of Finance	2008 Actual	2009 Actual	2010 Actual	2011 Actual	2012 Approp
General Fund	$4,210,800	$4,059,300	$4,011,600	$4,017,600	$4,004,500
General Fund, One-time	$0	$1,621,000	($14,700)	$0	$0
Transportation Fund	$118,000	$118,000	$118,000	$118,000	$118,000
Dedicated Credits Revenue	$128,400	$96,000	$173,400	$224,500	$189,000
GFR - Motion Picture Incentive	$4,000,000	$3,831,300	$2,206,300	$2,206,300	$0
GFR - Tourism Marketing Performance	$11,000,000	$10,888,000	$7,000,000	$6,950,000	$7,000,000
Beginning Nonlapsing	$2,888,100	$4,270,300	$4,190,300	$5,401,000	$0
Closing Nonlapsing	($4,270,200)	($4,190,300)	($5,401,000)	($6,830,400)	$0
Lapsing Balance	$0	($12,700)	($54,300)	($158,200)	$0
Total	$18,075,100	$20,680,900	$12,229,600	$11,928,800	$11,311,500

Programs:	2008 Actual	2009 Actual	2010 Actual	2011 Actual	2012 Approp
Administration	$989,700	$1,031,800	$986,700	$950,300	$988,200
Operations and Fulfillment	$2,851,300	$2,513,400	$2,385,100	$2,490,200	$2,574,600
Marketing and Advertising	$11,351,700	$11,062,500	$7,534,100	$6,966,200	$7,000,000
Film Commission	$2,882,400	$6,073,200	$1,323,700	$1,522,100	$748,700
Total	$18,075,100	$20,680,900	$12,229,600	$11,928,800	$11,311,500

Categories of Expenditure	2008 Actual	2009 Actual	2010 Actual	2011 Actual	2012 Approp
Personnel Services	$1,963,700	$2,038,600	$1,978,100	$1,984,800	$2,037,400
In-state Travel	$48,300	$43,200	$42,400	$40,800	$53,500
Out-of-state Travel	$97,200	$64,300	$61,900	$75,400	$91,000
Current Expense	$9,383,900	$8,199,400	$6,282,300	$6,033,800	$1,597,900
DP Current Expense	$26,000	$100,900	$96,100	$93,500	$96,100
Capital Outlay	$12,500	$0	$0	$5,500	$0
Other Charges/Pass Thru	$6,543,500	$10,234,500	$3,768,800	$3,695,000	$7,435,600
Total	$18,075,100	$20,680,900	$12,229,600	$11,928,800	$11,311,500

Other Indicators	2008 Actual	2009 Actual	2010 Actual	2011 Actual	2012 Approp
Budgeted FTE	27.0	26.0	25.0	24.0	25.0
Actual FTE	0.0	0.0	24.5	24.0	0.0
Vehicles	4	4	4	4	4

Subcommittee Table of Contents

Program: Administration

Function

Tourism Administration is responsible for providing direction to the Office of Tourism. Responsibilities include applied research, coordination of tourism programs, strategic planning, and branding the state globally. Additionally, the Utah Film Commission reports to the Managing Director of the Office of Tourism.

Funding Detail

Appropriations to this program come from the General Fund.

Sources of Finance	2008 Actual	2009 Actual	2010 Actual	2011 Actual	2012 Approp
General Fund	$1,044,500	$998,600	$987,600	$990,700	$988,200
General Fund, One-time	$0	$30,800	($4,900)	$0	$0
GFR - Motion Picture Incentive	$600	$0	$0	$0	$0
Beginning Nonlapsing	$66,800	$122,200	$110,400	$106,400	$0
Closing Nonlapsing	($122,200)	($110,400)	($106,400)	($146,800)	$0
Lapsing Balance	$0	($9,400)	$0	$0	$0
Total	$989,700	$1,031,800	$986,700	$950,300	$988,200

Categories of Expenditure	2008 Actual	2009 Actual	2010 Actual	2011 Actual	2012 Approp
Personnel Services	$630,200	$660,400	$609,200	$574,300	$675,200
In-state Travel	$22,500	$25,600	$23,000	$22,700	$20,500
Out-of-state Travel	$36,800	$28,400	$20,300	$24,300	$35,000
Current Expense	$250,900	$252,600	$252,000	$245,400	$175,300
DP Current Expense	$11,800	$57,000	$82,200	$83,600	$82,200
Capital Outlay	$12,500	$0	$0	$0	$0
Other Charges/Pass Thru	$25,000	$7,800	$0	$0	$0
Total	$989,700	$1,031,800	$986,700	$950,300	$988,200

Other Indicators	2008 Actual	2009 Actual	2010 Actual	2011 Actual	2012 Approp
Budgeted FTE	6.0	6.0	6.0	6.0	6.0
Actual FTE	0.0	0.0	6.1	6.0	0.0

Subcommittee Table of Contents

Program: Operations and Fulfillment

Function

The Operations and Fulfillment program is responsible for media, publications, information services, distribution, interagency cooperation, coordination of the scenic byway program, and special projects. Staff distributes information to journalists, the traveling public, Web requests and 800-number inquiries.

Scenic Byways

Operations and Fullfillment provides promotional materials at national and state scenic byways. Scenic byways are areas designated by the State or federal government for archeological, cultural, historic, natural, recreational and/or scenic qualities.

Interagency and Public-Private Partnerships

The Office of Tourism maintains key industry partnerships with entities such as the Travel Industry Association (TIA), Canyon Country Partnership, Ski Utah, Western States Tourism Policy Council, National Council of State Tourism Directors, Travel and Tourism Research Association, Utah Travel Regions and Utah Tourism Industry Coalition, Temple Square's Visitor Activities Coordinating Committee (VACC), and the Salt Lake Convention and Visitors Bureau.

Publications

The Utah Scenic Calendar and the Utah Travel Guide are annual publications produced and distributed by the Office of Tourism. The UOT re-designed the Utah Travel Guides and the calendar to increase exposure of the attractive images of the state.

Welcome Centers

The Office contracts for the tourism information portion of Utah's five gateway welcome centers. Each welcome center received $65,000 for administration and operations.

Tourism Trade

The Tourism Trade Program educates and assists the travel industry about travel opportunities within Utah. The staff coordinates efforts between out of state travel advisors and in-state providers.

Familiarization tours are conducted with media and tour operators from around the world. Throughout the year, approximately 100 familiarization tours are executed. The Office of Tourism maintains international representation in Germany, the United Kingdom, France and Japan. On behalf of UOT the organizations work to increase consumer awareness in their markets by working with the media. They serve as fulfillment houses to distribute Utah information to consumers.

Funding Detail

Funding for the Operations and Tourism Trade programs supports staff and Welcome Centers. Federal funds and Transportation Funds are utilized to fund Welcome Centers statewide. The program also receives dedicated credit revenues for services provided.

Sources of Finance	2008 Actual	2009 Actual	2010 Actual	2011 Actual	2012 Approp
General Fund	$2,402,500	$2,304,600	$2,275,800	$2,274,900	$2,267,600
General Fund, One-time	$0	$78,700	($6,500)	$0	$0
Transportation Fund	$118,000	$118,000	$118,000	$118,000	$118,000
Dedicated Credits Revenue	$128,400	$96,000	$173,400	$224,500	$189,000
GFR - Motion Picture Incentive	$200	$0	$0	$0	$0
Beginning Nonlapsing	$229,600	$27,500	$109,500	$230,800	$0
Closing Nonlapsing	($27,400)	($109,600)	($230,800)	($199,800)	$0
Lapsing Balance	$0	($1,800)	($54,300)	($158,200)	$0
Total	$2,851,300	$2,513,400	$2,385,100	$2,490,200	$2,574,600

Categories of Expenditure	2008 Actual	2009 Actual	2010 Actual	2011 Actual	2012 Approp
Personnel Services	$796,300	$855,000	$862,600	$912,500	$858,500
In-state Travel	$22,300	$10,200	$8,400	$10,800	$23,000
Out-of-state Travel	$38,400	$24,100	$25,600	$29,400	$36,000
Current Expense	$1,560,600	$1,216,600	$1,116,700	$1,190,900	$1,281,000
DP Current Expense	$6,600	$14,100	$12,900	$4,600	$12,900
Capital Outlay	$0	$0	$0	$5,500	$0
Other Charges/Pass Thru	$427,100	$393,400	$358,900	$336,500	$363,200
Total	$2,851,300	$2,513,400	$2,385,100	$2,490,200	$2,574,600

Other Indicators	2008 Actual	2009 Actual	2010 Actual	2011 Actual	2012 Approp
Budgeted FTE	14.0	14.0	13.0	13.0	13.0
Actual FTE	0.0	0.0	12.0	13.0	0.0
Vehicles	3	3	3	3	3

Subcommittee Table of Contents

Program: Marketing and Advertising

Function

The Marketing and Advertising program is responsible for the overall Utah tourism brand, marketing, advertising and promotional plans. The overall goal of the Marketing Program is to increase the national and international awareness, inquiries, and tourism visits to Utah. Key measures include total tourism visits, length of stay, repeat visitors, and person per day spending. Staff oversees the advertising agency contract and the budget, which includes the Cooperative Marketing Program. In addition, the Utah Sports Commission receives 10 percent of the appropriation to the Tourism Marketing Performance Fund to promote Utah through sports events.

Increasing out-of-state visitation involves branding, advertising, sales, and promotion activities directed towards consumers, media, and the travel trade. Promotional and development activities are used in the selling of Utah to the same audiences and include sales missions, consumer and trade shows. Market research is used to identify these appropriate markets, as well as geographic, activity-based, and emerging markets. Efforts are coordinated with city, county, convention and visitor bureaus, vacation destinations, and inter-agency offices and programs.

Funding Detail

Funding for the program is appropriated out of the Tourism Marketing Performance Fund. Funding for this restricted account comes from General Fund appropriations and earmarked sales tax revenues. The appropriation for the restricted account shows up in the Transfer section of this report.

Sources of Finance	2008 Actual	2009 Actual	2010 Actual	2011 Actual	2012 Approp
GFR - Tourism Marketing Performance	$11,000,000	$10,888,000	$7,000,000	$6,950,000	$7,000,000
Beginning Nonlapsing	$2,459,200	$2,107,500	$1,933,100	$1,399,000	$0
Closing Nonlapsing	($2,107,500)	($1,933,000)	($1,399,000)	($1,382,800)	$0
Total	$11,351,700	$11,062,500	$7,534,100	$6,966,200	$7,000,000

Categories of Expenditure	2008 Actual	2009 Actual	2010 Actual	2011 Actual	2012 Approp
Current Expense	$7,365,900	$6,600,500	$4,775,600	$4,486,700	$0
DP Current Expense	$0	$29,000	$0	$4,500	$0
Other Charges/Pass Thru	$3,985,800	$4,433,000	$2,758,500	$2,475,000	$7,000,000
Total	$11,351,700	$11,062,500	$7,534,100	$6,966,200	$7,000,000

Subcommittee Table of Contents

Program: Film Commission

Function

The Utah Film Commission markets the entire state as a destination for the motion picture, television, and commercial industries to promote job creation and increase exposure of the state.

Funding Detail

The Film Commission funding comes from the General Fund and the Motion Picture Incentive Fund. Nonlapsing balances increased from FY 2010 to FY 2011 due to the transition of the film incentive program from an appropriation based program to a tax credit program and the span of contracts over multiple years.

Sources of Finance	2008 Actual	2009 Actual	2010 Actual	2011 Actual	2012 Approp
General Fund	$763,800	$756,100	$748,200	$752,000	$748,700
General Fund, One-time	$0	$1,511,500	($3,300)	$0	$0
GFR - Motion Picture Incentive	$3,999,200	$3,831,300	$2,206,300	$2,206,300	$0
Beginning Nonlapsing	$132,500	$2,013,100	$2,037,300	$3,664,800	$0
Closing Nonlapsing	($2,013,100)	($2,037,300)	($3,664,800)	($5,101,000)	$0
Lapsing Balance	$0	($1,500)	$0	$0	$0
Total	$2,882,400	$6,073,200	$1,323,700	$1,522,100	$748,700

Categories of Expenditure	2008 Actual	2009 Actual	2010 Actual	2011 Actual	2012 Approp
Personnel Services	$537,200	$523,200	$506,300	$498,000	$503,700
In-state Travel	$3,500	$7,400	$11,000	$7,300	$10,000
Out-of-state Travel	$22,000	$11,800	$16,000	$21,700	$20,000
Current Expense	$206,500	$129,700	$138,000	$110,800	$141,600
DP Current Expense	$7,600	$800	$1,000	$800	$1,000
Other Charges/Pass Thru	$2,105,600	$5,400,300	$651,400	$883,500	$72,400
Total	$2,882,400	$6,073,200	$1,323,700	$1,522,100	$748,700

Other Indicators	2008 Actual	2009 Actual	2010 Actual	2011 Actual	2012 Approp
Budgeted FTE	7.0	6.0	6.0	5.0	6.0
Actual FTE	0.0	0.0	6.4	5.0	0.0
Vehicles	1	1	1	1	1

Subcommittee Table of Contents