SHB 1437
In CommitteeHouse
Tourism promotion
Concerning sustainable state tourism promotion.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill creates a process to explore shifting tourism promotion funding from state appropriations to an industry-funded assessment, similar to fees paid by businesses in exchange for marketing services. It also updates the governance of the state’s tourism marketing authority and sets a deadline for delivering recommendations to the legislature.
- Establishes a tourism self-supported assessment advisory group to study and recommend a new funding model for tourism promotion, including how businesses would be assessed and how the program would be overseen.
- Amends the governance of the Washington Tourism Marketing Authority by changing board appointment terms to four years (previously varied), and clarifying appointment rules to ensure geographic, business-size, gender, and ethnic diversity.
- Requires the advisory group to submit recommendations to the legislature by November 1, 2025, covering business classifications, assessment rates, petition processes, and an oversight board for ratepayers.
- Creates a nonvoting advisory committee to the board that includes state agency and federally recognized Indian tribe representatives.
- Sets a sunset date of June 1, 2026, for the new advisory group and its authority.
Who is affected
- Tourism industry businesses — Tourism-related businesses (e.g., hotels, restaurants, attractions, rental car companies, tour operators, and arts/culture organizations) may be subject to a new industry-funded assessment if the legislature adopts the advisory group’s recommendations.
- State and local governments — State and local governments could benefit from increased tax revenue if tourism promotion is expanded and funded sustainably.
- Tourism workers and their families — Washington residents who work in tourism-related jobs may benefit from increased job stability and growth due to more reliable funding for tourism promotion.
- Tribal nations — Federally recognized tribes may gain representation through the advisory committee and have a voice in how tourism promotion affects tribal lands and cultural resources.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
Mandating geographic, business-size, gender, and ethnic diversity on the tourism marketing authority board improves representation for underrepresented groups in tourism decision-making, potentially leading to more equitable distribution of tourism benefits across communities.
Business & EmploymentPeopleRef: Sec. 2(1)(c)Shifting tourism promotion funding to an industry-funded assessment could reduce reliance on state general fund appropriations, freeing up limited public dollars for other priorities—especially beneficial during budget shortfalls—while ensuring tourism promotion is directly tied to industry investment.
Business & EmploymentPeopleRef: Sec. 3(1)Creating a nonvoting advisory committee with federally recognized Indian tribe representatives ensures tribal input into tourism planning on or near tribal lands, supporting culturally respectful development and potentially increasing tribal economic participation.
Local GovernmentPeopleRef: Sec. 2(2)Tourism generates $29 in visitor spending per $1 invested and $3 in tax revenue per $1 invested; a sustainable funding model could stabilize promotion efforts, supporting job retention and reducing economic volatility for tourism-dependent communities during downturns.
Public SafetyPeopleRef: Sec. 1Formalizing sectoral representation (lodging, attractions, arts, etc.) in the advisory group gives voice to niche but vital tourism subsectors that have historically lacked influence in state-level tourism policy, potentially leading to more balanced program design.
Business & EmploymentPeopleRef: Sec. 3(2)
Potential Concerns (5)
The bill requires local governments to potentially absorb administrative costs if tourism assessment programs are implemented locally (e.g., collection, enforcement, appeals), though the bill does not specify funding for these costs. This could strain local budgets, especially in rural counties with limited resources to manage new assessment programs without state reimbursement.
Local GovernmentRef: Sec. 2(3)The advisory group composition excludes small-scale or informal tourism operators (e.g., independent guides, home-based artisans, seasonal vendors), potentially marginalizing micro-businesses that constitute a large share of tourism activity but lack formal sectoral representation.
Business & EmploymentRef: Sec. 3(2)The bill does not address how assessment revenues would be used to fund tourism-related public safety services (e.g., trail maintenance, emergency response in high-traffic areas), which may increase with higher visitation but remain unfunded under the current proposal.
Public SafetyRef: Sec. 3(4)The board appointment rules cap at two members per county and one per city, which may underrepresent rural and small-town tourism economies that rely heavily on local visitor economies but lack large business clusters.
Local GovernmentRef: Sec. 2(1)(c)If assessments are adopted, small businesses (e.g., family-run bed-and-breakfasts, local tour operators) may face disproportionate compliance burdens relative to revenue generated, especially if assessments are not tiered by size or revenue.
Business & EmploymentRef: Sec. 3(1)
Who Is Most Affected
Tourism businesses—especially mid- and large-scale operators (hotels, resorts, major attractions)—are likely to benefit from more stable, industry-funded promotion, potentially increasing revenue and job stability. However, small operators may face new administrative or assessment costs without proportional benefit.
State and local governments may benefit from reduced state appropriation needs and increased tax revenue if tourism promotion proves effective, but local governments may also face unfunded administrative burdens if assessments are implemented.
Tourism workers in stable, full-time positions (e.g., at resorts, national parks, major attractions) may benefit from increased job security and growth, but seasonal, part-time, or informal workers may see little improvement unless promotion drives year-round demand.
Federally recognized tribes gain formal advisory representation, supporting cultural stewardship and potential economic partnership opportunities, though their influence remains nonvoting and advisory-only.