Ongoing Resolutions for Explore Minnesota Tourism Council

Resolution: Funding Resolution

Approved by Explore Minnesota Tourism Council on December 6, 2011

Whereas, leisure and hospitality is an $11 billion industry in Minnesota that accounts for 17% of Minnesota’s state sales tax and provides over 238,000 full and part-time jobs (11% of total private sector employment);

Whereas, nationally Minnesota ranks 22nd in travel spending, 18th in travel generated employment, 14th in travel generated payroll and 9th in travel generated tax receipts;

Whereas Minnesota’s tourism office budget ranks 30th nationally;

Whereas regional competitors such as Wisconsin, Illinois, South Dakota and Michigan outspend Minnesota;

Whereas Explore Minnesota Tourism works on partnerships between private-sector destinations and businesses as well as public and state-operated facilities that maximize human, fiscal and other resources; and

Whereas the Explore Minnesota Tourism Council, which provides strategic direction and represents all major sectors of the tourism industry, has set a goal to make leisure and hospitality a $20 billion industry in Minnesota by the year 2020; which will increase jobs to 271,500.

Whereas additional funding would allow the state to significantly expand its marketing, increasing advertising in current markets and expanding to new markets;

Whereas significant new revenues will be provided to the general fund from a new online travel tax;

Now therefore, the Explore Minnesota Tourism Council resolves:

To generate new sources of revenue for tourism marketing beyond state general fund, including but not limited to, dedicated taxes on tourism and partnerships with state and tribal governments and organizations.

To replace Explore Minnesota Tourism’s general fund with dedication of the existing 6.2% car rental tax to Explore Minnesota Tourism for tourism marketing; and

To increase the required private sector match generated by Explore Minnesota Tourism to $3,000,000 per year from non-state sources.

Resolution: Integrated marketing

Approved by Explore Minnesota Tourism Council on September 14, 2010

Whereas, leisure and hospitality is an $11.2 billion industry in Minnesota that accounts for 16% of Minnesota’s state sales tax and provides over 245,000 full and part-time jobs;

Whereas, most of the jobs created in Minnesota in the past year were in the leisure and hospitality sector, which gained 15,200 workers;

Whereas, nationally Minnesota is ranks 22nd in travel spending, 18th in travel generated employment, 14th in travel generated payroll and 9th in travel generated tax receipts;

Whereas Minnesota’s tourism office budget ranks 28th nationally;

Whereas the Explore Minnesota Tourism Council, which provides strategic direction and represents all major sectors of the tourism industry, has set a goal to make leisure and hospitality a $20 billion industry in Minnesota by the year 2020;

Whereas, a comprehensive planning process was undertaken to develop a 2020 vision for Minnesota tourism;

Whereas, the Explore Minnesota Tourism Council has identified strategic needs and benefits of more integrated public and private tourism marketing efforts;

Now therefore, the Explore Minnesota Tourism Council resolves:

To pursue a statewide integrated marketing plan to cohesively promote Minnesota’s public and private sector assets, reduce duplication; increase brand awareness; increase awareness of the resources of the state; increase the number of visitors and increase economic growth;

To develop expanded partnerships between private-sector destinations and businesses as well as public and state-operated facilities that maximize human, fiscal and other resources; and

To generate new sources of revenue for tourism marketing beyond state general fund, including but not limited to, dedicated taxes on tourism and partnerships with state and tribal governments and organizations.

Resolution: Education and Training

Approved by Explore Minnesota Tourism Council on September 14, 2010

Whereas leisure and hospitality is an $11.2 billion industry in Minnesota that accounts for 16% of Minnesota’s state sales tax revenues and provides over 245,000 full and part-time jobs;

Whereas most of the jobs created in Minnesota in the past year were in the leisure and hospitality sector, which gained 15,200 workers;

Whereas the tourism industry is made up of a wide variety of businesses, including lodging accommodations, restaurants, gift shops, transportation and attractions;

Whereas the Explore Minnesota Tourism Council, which provides strategic direction and represents all major sectors of the tourism industry, has set a goal to make leisure and hospitality a $20 billion industry in Minnesota by the year 2020;

Whereas educating and training employees for the tourism industry is a significant industry priority;

Now therefore, the Explore Minnesota Tourism Council resolves:

To support tourism career education in secondary and post-secondary schools that will provide a trained tourism, leisure and hospitality workforce with appropriate skills and knowledge and a strong work ethic.

Resolution: School Year Calendar

Updated and Approved by Explore Minnesota Tourism Council on February 10, 2010

Introduction: A change in current law regarding the start date or length of the school year is not necessary to make progressive change in Minnesota’s educational outcomes.

Increased learning outcomes are compatible with Minnesota’s tradition of summer. There are many reforms proposed for K-12 education; all day-every day kindergarten, longer school days, increasing the number of education days per year, and many more. Reforms that compliment students, families and the many businesses that depend on the school calendar can be accomplished.

Whereas, Minnesota claims one of the highest levels of K-12 learning in the country;

Whereas, increasing classroom time does not have to compete with Minnesota’s tourism industry;

Whereas, learning benefits and outcomes are important to the tourism industry;

Whereas, school calendars can have an impact on both family vacation options and seasonal employment;

Therefore, the Explore Minnesota Tourism Council supports:

Quality education as a high priority for the state;

A school calendar that addresses the best learning outcomes available while preserving Minnesota’s heritage of summer, including preserving a post Labor Day School start;

Consolidation of calendars among school districts in a manner that does not alter the date of a post Labor Day school year start; and

Investigating other tools to increase learning outcomes before changing the start date or increasing the number of educational days in the school year.

Resolution: Lodging Tax

Updated and Approved by Explore Minnesota Tourism Council on February 10, 2010

Whereas leisure and hospitality is an $11.2 billion industry in Minnesota that accounts for 16% of Minnesota’s state sales tax and provides over 245,000 full and part-time jobs;

Whereas, local economies around the state utilize the local option lodging tax to attract visitors from outside of their area;

Whereas, the Minnesota lodging tax in M.S. 469.190 is to be used exclusively to market and promote tourism and convention destinations through a variety of methods;

Whereas, the ability to fund these promotion efforts to a level that is competitive in the marketplace is critical to a destination’s success;

Whereas, the ability to impose a local option lodging tax to secure funding for these promotional efforts is critical to the promotion of many of Minnesota’s tourism destinations.

Therefore, the Explore Minnesota Tourism Council supports:

The existing statute, M.S. 469.190, providing a local option lodging tax of up to three percent on the gross receipts from lodging and dedicating ninety-five percent of the gross proceeds only to marketing and promotion of tourism.

Resolution: U.S. Coast Guard Federal Navigable Waters Licensing

Approved by Explore Minnesota Tourism Council on February 10, 2010

Introduction: A change in enforcement by the U.S. Coast Guard regarding federal navigable waters boat licensing based on standards established for larger commercial boat operations on major bodies of water, would have an immediate negative impact on Minnesota fishing guides, tour boat operators, and casual boat/ pontoon rides offered through commercial businesses such as resorts.

Whereas, Minnesota’s tourism industry and businesses support licensing and oversight to ensure public safety on Minnesota’s lakes and rivers;

Whereas leisure and hospitality is an $11.2 billion industry in Minnesota that accounts for 16% of Minnesota’s state sales tax and provides over 245,000 full and part-time jobs;

Whereas, Minnesota has over 500 guides who take anglers on inland navigable waters and hundreds of resorts and businesses that offer casual boat/pontoon rides to their guests;

Whereas, the U.S. Coast Guards qualifications for licensing of an Operator of an Uninspected Passenger Vessel , or "Six-Pack" was not designed for most inland lakes or rivers nor for small vessels such as 16-20 foot outboard boats;

Whereas for the past several decades, the Coast Guard has exercised discretion in it’s enforcement of the "Six-Pack" licensing;

Therefore the Explore Minnesota Tourism Council supports:

Continued use of discretion in pro-active enforcement of the existing licensing requirements for an Operator of an Uninspected Passenger Vessel;

Interim enforcement should address safety issues without penalizing small vessel operators for issues that do not relate to inland lakes;

The U.S. Coast Guard should review standards including knowledge, cost and time commitment to develop licensing appropriate to smaller vessels operating on inland waters;

Minnesota’s Congressional delegation should oversee timely action on this issue.

Resolution: Online Travel Companies

Adopted by the Explore Minnesota Tourism Council on February 10, 2010

Whereas leisure and hospitality is an $11.2 billion industry in Minnesota that accounts for 16% of Minnesota’s state sales tax and provides over 245,000 full and part-time jobs;

Whereas, preliminary 2008 gross sales for lodging in Minnesota is $1,890,365,419 generating an estimated state sales tax for lodging of $114,340,891;

Whereas, online reservation and booking services perform a function in marketing the available inventory of lodging rooms in Minnesota and throughout the world;

Whereas, online reservation and booking services are also recognized and used as a means of comparative shopping and price evaluation for consumers.

Whereas, due to online booking services significance in the sale of lodging rooms, any changes in the costs or ability to operate or comply with laws in Minnesota as compared to other destinations could impact our lodging industry.

Therefore, the Explore Minnesota Tourism Council resolves:

Implementation of Online Travel Company taxes in Minnesota should not distinguish Minnesota from surrounding states in a way that would negatively impact Minnesota lodging occupancy and revenue.

Lodging properties must be indemnified from penalties that result from lack of compliance with taxation laws on the part of online travel companies and should not be required to collect tax on funds that are not paid to the lodging property.

Although this issue may need to be addressed at a federal level, it must be dealt with as a free standing issue and thoroughly vetted through the congressional hearing process.