Hotel Receipts Fund Budget

<B> Hotel Receipts Fund Budget</B>

By Mary Ann McNulty

In a move expected to increase inbound travel funding significantly, the Illinois Legislature approved a measure that ties the state's tourism budget to hotel-motel tax receipts instead of fixed amounts.

For the 1998 budget, the Illinois Bureau of Tourism will receive 29 percent of the hotel and motel tax receipts, projected to reach $35.4 million. With hotels across the state hitting record occupancy and rate levels, the new funding formula couldn't have come at a better time.

"This bill recognizes tourism as a powerful economic development tool with proven economic impact on the entire state," said Donna Shaw, state travel director for the tourism bureau. "It not only increases industry funding for fiscal year 1998, but has the mechanism in place to ensure additional funding potential as the industry grows."

The biggest beneficiary of the change will be Illinois' convention and visitors bureaus, which will share $2 million more in state grants this year. CVB funding will grow from $8 million to $10.2 million, the first increase since 1991. Domestic advertising spending will rise to $10.2 million from $10 million. Overall, the new budget formula is expected to boost the bureau's budget $2.58 million this year.

For the past decade, the tourism bureau received fixed dollar amounts for specific programs while the bulk of the tax receipts were funneled into the state's general revenue account.