Kentucky officials review tourism funding and economic impact at budget meeting

The House Standing Committee on Economic Development, Public Protection, Tourism, and Energy convened on February 12, 2025, to discuss the state of Kentucky's tourism industry and its economic impact. The meeting, led by a substitute chair due to the absence of Chair Fugate, featured presentations from key officials in the tourism sector.

Melissa Brewer, Executive Director of Finance for the Tourism, Arts, and Heritage Cabinet, highlighted the importance of tourism as a multibillion-dollar industry that significantly contributes to Kentucky's economy. She emphasized that the tourism meeting and convention marketing fund, which is supported by a 1% tax on transient room rentals, plays a crucial role in promoting tourism across all 120 counties in the state. Brewer noted that the fund is strictly allocated for marketing and promotional activities, excluding capital projects.

Brewer reported that the fund has seen substantial growth, with an increase in appropriations for fiscal years 2025 and 2026, amounting to an additional $3 million and $7 million, respectively. This funding supports various initiatives, including the Kentucky Mountain Regional Recreation Authority and the National Quilt Museum. She also mentioned that approximately $7 million has already been spent this year, with plans to allocate the remaining $15 million effectively.

Commissioner Mike Manchin of the Kentucky Department of Tourism reinforced the significance of the 1% fund, describing it as essential for maintaining competitiveness in the tourism market. He explained that increased funding leads to more visitors, which in turn generates more revenue for local communities. Manchin highlighted the department's marketing efforts, which include securing media coverage in prominent publications to promote Kentucky as a travel destination.

The committee's discussions underscored the vital role of tourism in Kentucky's economic development and the ongoing efforts to enhance the state's visibility as a premier destination for visitors. The meeting concluded with a commitment to continue supporting initiatives that drive tourism growth and economic prosperity in the Commonwealth.