Text by Fred Delkin, photos by Bob Pool

 Oregon ranks a lowly 46th in state-funded tourism promotion, yet a recently introduced legislative bill proposing to double the existing Oregon Tourism Commission annual budget is generating tourism industry opposition.  The bill seeks to create a statewide 1% tax on all lodging in Oregon, with the take, estimated at $7 million a year, going into Commission coffers to market the state’s attractions. 

New Governor Ted Kulongoski has expressed his strong support for the proposed tax as a vital tool to pry the state’s economy upward with increased tourism revenues for the Oregon service industry.  Yet local politicos tend to look askance at House bill 2267’s stipulation prohibiting cities and counties from adopting or increasing local lodging taxes.  While 80 of Oregon’s 238 incorporated communities have adopted some level of lodging tax, local governments place much of this revenue into their general funds to pay for all manner of non-tourist-specific items.  Then there are the objections of lodging owners to a new tax that could raise room rates.

Opponents support local control

Oregon’s lack of state funded promotion can only be addressed sufficiently by a statewide effort as represented by the proposed house bill.  Timing can be critical.  The Port of Portland (a lobbyist for the bill), restored the city’s status as an international airline presence by recently inking a deal with Germany’s Lufthansa for direct service between PDX and Frankfurt, on the expectation that the state would spend up to $500,000 per year promoting our fair region to German tourists.  The service opens this March.  We know from personal experience that Germany is the most lucrative source of tourism of any nation outside the United States…far better than the Asian markets previously served by now defunct direct  service to Portland.

Oregon has ample tourism resources to be a major international player, yet only dollars will unlock the potential beyond our neighboring states.  Our state’s economy is in a world of hurt, with such economic mainstays as logging and fishing continuing their decline.  Tourism is an economic development resource ideal for kicking our state’s revenues up a major notch.  City councils and county commission boards will always selfishly guard their local funding sources…a statewide lodging tax can take us all on a scoring run around this obstacle.

Central Oregon shows the way

One region of our state has long realized the potential of a cooperative effort.  The Central Oregon Recreation Association was formed decades ago by some pioneering resort developers.  The region’s dependence upon the forest industry was fading and a joint marketing program offered an affordable means of promoting a region rife with climatic and geographic advantages.

A group effort established a Redmond airline connection with the world and promoted a winter passenger rail link appealing to Californians.  “Resort” became a development byword and today Bend, Redmond and Sisters are surrounded by properties devoted to recreational enjoyment…properties who happily contribute to CORA marketing on their behalf. 

This is an example the statewide tourist industry should take to heart.  A minimal lodging tax as proposed in the bill before the legislature will fund a marketing effort for everyone’s economic benefit.  The Tourist Commission currently subsists on state lottery revenue which enables a too-modest advertising effort of a few color pages in a regional magazine, a strong web site and generation of a comprehensive color printed travel guide whose distribution is too limited. 

Few regions on earth can match Oregon’s diversity of tourist appeals.  It’s time to get tourist traffic to pay for spreading the word on our paradise.

Text © 2003 Fred Delkin   Photos © 2003 Bob Pool