Tourism leaders push to modernize travel trust fund, cite Cape Cod revenue losses

Paul Niedzwicki, president and CEO of the Cape Cod Chamber of Commerce, told the Joint Committee on Revenue that "On Cape Cod tourism isn't just part of the economy, it is the cornerstone of the economy." He said 2024 visitor spending on Cape Cod totaled $2.8 billion, supported more than 14,000 local jobs, produced about $168 million in state tax revenue and roughly $90 million in local tax revenue for 15 towns.

Niedzwicki and other witnesses urged modernizing the 2014 travel and tourism trust fund formula by adding a small, predictable share of existing hotel-occupancy excise receipts to the trust fund baseline. Testimony estimated that indexing roughly 2.5 percent of occupancy excise receipts would add about $6.6 million to the fund in FY26. Proponents described the measure as a reinvestment of revenue generated by visitors back into marketing that drives visitation.

Betsy Brewer Bethel, who said her family owns and operates Southwick Zoo in Mendon and an affiliated nonprofit, described the zoo's roughly 500,000 annual visitors and summer employment of about 300 people; she said building costs have risen sharply and that stronger trust-fund support would help reach new audiences. Suzette Robert, owner of Indian Ranch in Webster, said Discover Central Mass. regional marketing has driven visitors to a multi-faceted small business and that additional trust-fund resources would amplify regional promotions.

Proponents acknowledged tight state budgets and competing priorities but argued the proposal is not a new tax; rather, it dedicates a small share of an existing occupancy-related revenue stream to increase marketing that can grow visitation and downstream tax receipts. No vote or formal committee action was recorded in the transcript provided.