Contact: Michele Peters
651-296-0308
michele.peters@state.mn.us
October 20, 2006, St. Paul, Minn. — The Minnesota Department of Finance has authorized the release of an additional $1 million from the state’s general fund to Explore Minnesota Tourism’s FY 2007 budget. These funds are based on documentation showing that Explore Minnesota Tourism raised $5,437,932 through public and private match contributions in FY 2006. Explore Minnesota Tourism, the state’s tourism office, was set up as a public/private venture in 2004. This structure allows Explore Minnesota Tourism to leverage the support of tourism businesses throughout Minnesota to pay for its marketing, advertising and communications expenditures.According to statute, for each dollar above $4 million, Explore Minnesota Tourism may receive an additional dollar from the general fund. Explore Minnesota Tourism is currently eligible for a maximum of $1 million in incentive funds.

“This was the first time that we have been eligible to receive this incentive fund appropriation,” said John F. Edman, director, Explore Minnesota Tourism. “I am very proud of my staff for their work on these partnerships throughout the year, and thankful to the industry for recognizing the importance of these match funds to our mission to support and enhance tourism throughout the state.”

The additional $1 million appropriation will be used exclusively for marketing and grants. The majority of this money will be put into the marketplace for advertising; and the remainder to be returned to the industry in the form of grants.

The work of Explore Minnesota Tourism is key to the state’s economy. Explore Minnesota Tourism promotes travel throughout Minnesota, helping to bring almost 29 million visitors and more than $10 billion to the state annually. Tourism is one of the largest industries in the state, supporting 235,000 jobs.

An investment of $1 in state tourism marketing has been shown to produce $4.60 in new state and local taxes, $20.40 in wages and $53 in gross sales. Currently, tourism produces more than $1 billion annually in state and local taxes.

As the state’s tourism office, Explore Minnesota Tourism is pursues an entrepreneurial approach, leveraging the state’s tourism investment with increased involvement by the private sector. A council of representatives from the state’s tourism industry strongly connects Explore Minnesota Tourism with tourism businesses and organizations.

Tourism is a $10 billion industry in Minnesota, a key sector of the state’s economy. The leisure and hospitality industry, a major provider of tourism services, employs more than 230,000 Minnesotans. More information can be found at www.exploreminnesota.com.

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