2001 Session

Budget Amendments - SB800 (Committee Approved)

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Cooperative Advertising Program (language only)

Item 130 #13s

Item 130 #13s

Commerce and Trade
Virginia Tourism Authority

Page 111, strike lines 15 through 25 and insert:
"3.  As a condition of appropriation for this Item, the Cooperative Advertising Program shall incorporate the following fundamental principles to be effective and applied to grants awarded in fiscal year 2002:
a.  The Program shall be a bifurcated grant program designed to: (1) maintain successful local, regional and statewide tourism partnership programs that achieve measurable and reasonable return on investment (ROI) based on tourism industry standards and as determined by the Virginia Tourism Corporation (VTC) Board; (2) encourage an increase in the length of stay at Virginia destinations; and (3) support new startup marketing and advertising initiatives that include appropriate ROI targets attainable within a three-year timeline to qualify for continued grant funding.  If the applications of tourism programs do not include a project measurement device to determine ROI, then funding will be denied.  Seventy-five percent of the total amount appropriated to the Program is to be allocated to marketing and advertising programs with documented ROI, and twenty-five percent is to be allocated to support new startup marketing and advertising initiatives.
b.  Startup marketing and advertising programs will receive marketing assistance through the VTC in the areas of marketing development, advertising, market research and the establishment of ROI criteria.  These programs have up to three years to demonstrate a reasonable return on investment.  Training assistance by previously successful grant recipients will be made available and encouraged for startup programs.
c.  The Cooperative Advertising Program will target projects directed at out-of-state markets.  In-state marketing and advertising requests shall be directed to other VTC matching grant programs.
d.  No dollar limit or cap will be imposed on individual or partnership applicants.
e.  "In-kind" contributions may be listed in a project application, but will not be considered as cash for the purpose of computing the grant award.  The requirement of cash contributions shall not be waived.
f.  As long as an applicant demonstrates a reasonable ROI, based on tourism industry standards and as determined by the VTC Board, then there shall be no limitation on the number of years an applicant may be awarded a grant.
4.  Guidelines used by the VTC for the Cooperative Advertising Grant Program must be amended for grants that are to be awarded in fiscal year 2002.
5.  The VTC is directed to develop amended guidelines which are consistent with the principles articulated in this Item, and which shall be considered by the General Assembly during the 2002 Session.  The VTC shall develop the amended guidelines in active collaboration with representatives of the major tourism destinations in the Commonwealth, to include all geographical areas and representatives of the top five tourism destinations in the Commonwealth."

(This amendment recognizes that guidelines used by the Virginia Tourism Authority for the Cooperative Advertising Grant Program in fiscal year 2001 were interim and must be amended. Additional language articulates a set of principles for the VTC and its Board to follow in awarding grants in FY 2002. The VTC and its Board are further directed to develop amended grant allocation guidelines for consideration by the 2002 Session.)