Sunday, May 25, 2025
As Connecticut enters its peak tourism season this Memorial Day weekend, hospitality leaders are urging the state government to significantly boost its investment in tourism marketing. The Connecticut Restaurant Association (CRA) is leading the charge, calling for $20 million in dedicated funding to promote the state as a travel destination and support its restaurant and hospitality industries.
Currently, the state allocates only $4.5 million for tourism marketing — a figure that restaurant and business leaders say is no longer sufficient to compete with neighboring states or sustain the post-pandemic momentum that brought record visitors to Connecticut.
Call for Increased State Investment in Tourism
According to Scott Dolch, Executive Director of the Connecticut Restaurant Association, increased marketing support is vital to sustaining the state’s tourism-driven businesses, including restaurants, hotels, and attractions.
“We’ve done an incredible job at getting people to come to our state and boosting our hospitality sector, but we need to make sure we’re investing appropriately to maintain that momentum,” said Dolch during a recent press briefing.
He pointed to the stark contrast between Connecticut’s current tourism budget and those of neighboring states:
- Maine: $23 million annually
- Rhode Island: $16 million annually
- Connecticut: $4.5 million in 2024
This puts Connecticut at a competitive disadvantage, according to Dolch, despite tourism accounting for billions in economic activity annually. He recommends that the state tap into the 1% meals and beverage tax, enacted to support tourism and hospitality, to fund the proposed increase.
Connecticut’s Tourism Budget: A Decline from Pandemic Highs
Connecticut’s tourism marketing funding reached over $12 million in 2022, supported largely by federal COVID-19 relief through the American Rescue Plan Act (ARPA). This temporary infusion enabled the launch of campaigns like “Find Your Vibe,” which attracted record numbers of visitors in 2021 and 2022, according to the Connecticut Office of Tourism.
However, with ARPA funding expiring, the state’s tourism budget dropped back down to $4.5 million in 2024 — a steep reduction that has hospitality advocates worried about the long-term sustainability of the tourism sector.
Gov. Ned Lamont, speaking at a press event, acknowledged the decline in funding and emphasized the challenge of balancing priorities as state budget negotiations continue.
“A lot of that [tourism success] was related to the ARPA federal money. We had more visitors than ever coming out of COVID,” said Lamont. “Now we’re sitting down with leaders to get the balance right in the next week or two.”
Impact on Connecticut’s Hospitality Sector
Tourism is a vital pillar of Connecticut’s economy, supporting thousands of small businesses and jobs in restaurants, hotels, arts venues, retail, and attractions.
According to the Connecticut Department of Economic and Community Development (DECD), tourism in Connecticut:
- Generated over $15.5 billion in economic activity in 2022
- Supported more than 123,000 jobs
- Contributed over $2.4 billion in tax revenue
For restaurants in particular, the summer tourism season brings essential foot traffic. In towns along the shoreline, as well as destinations like Mystic, Litchfield, and Hartford, the seasonal influx can determine annual profitability for many small businesses.
Dolch cautions that underinvestment in tourism promotion now could reverse these gains.
“It’s great that we had a post-COVID rebound, but if visitor numbers start to fall, what does that mean for our restaurants, hotels, and the thousands of jobs they support?” he asked.
1% Meals and Beverage Tax as a Funding Source
Connecticut’s 1% meals and beverage tax, enacted in 2019 as part of broader revenue reforms, adds an additional charge on restaurant meals, catering, and beverages. The revenue is directed toward municipalities, but industry leaders argue it could be strategically reinvested to promote tourism and boost the very businesses generating the tax revenue.
As outlined in the Connecticut General Assembly’s Office of Fiscal Analysis, the meals tax generated more than $100 million in revenue annually. Advocates say allocating just a fraction of that to tourism marketing could yield significant returns in economic activity and job creation.
Legislative and Budgetary Outlook
Governor Lamont confirmed that state budget negotiations are underway and tourism funding is among many line items being considered.
“We’ve got 187 legislators and 100 advocates coming in with specific asks,” Lamont said, emphasizing that the administration is working to find a responsible balance.
The Connecticut General Assembly is expected to continue discussions through June as it finalizes the FY2025 state budget. Advocates from the CRA and other business groups plan to continue lobbying for the $20 million ask throughout the process.
According to CTStateBudget.org, the state is currently experiencing a surplus, offering more flexibility in funding decisions — though officials remain cautious about overcommitting amid inflation and looming federal aid reductions.
Comparative Regional Investment in Tourism
Connecticut’s regional competitors are significantly outspending the state on tourism campaigns. Here’s a breakdown of their investments:
- Maine Office of Tourism
- $23 million annual budget
- Focuses heavily on outdoor recreation, national parks, and culinary tourism
- Rhode Island Commerce Corporation
- $16 million annual investment
- Targets New York and Boston metro areas with seasonal promotions
These campaigns not only draw tourists from within New England but often from nearby states like Connecticut, diverting potential visitors.
Dolch warns that failing to match these investments may result in Connecticut losing visibility, visitor dollars, and long-term economic opportunities.
Public Support and Industry Unity
The call for more tourism funding has widespread support from Connecticut’s broader hospitality and travel sectors, including hotel associations, event organizers, and cultural institutions.
The CRA’s position aligns with the findings of the Connecticut Tourism Coalition, which has repeatedly urged increased state investment to maintain momentum generated during the COVID-19 recovery period.
CTVisit.com and affiliated campaigns have proven successful in driving measurable traffic and economic returns, according to analytics from DECD, reinforcing the case for a strategic, data-driven expansion in funding.
Conclusion: Investing in the Future of Connecticut Tourism
As Connecticut’s summer tourism season begins, the state stands at a crossroads. The opportunity to continue building on post-pandemic success exists, but advocates warn that it hinges on renewed and expanded state support.
The Connecticut Restaurant Association’s call for $20 million in tourism marketing — in line with neighboring states’ spending — is not merely about advertising but about protecting jobs, supporting local businesses, and sustaining Connecticut’s identity as a vibrant destination.
With budget negotiations underway, the spotlight is on Governor Lamont and the General Assembly to ensure that tourism and hospitality remain integral to Connecticut’s economic development strategy.
Source: nbcconnecticut
