For full information Click Here.
At a Glance: Lake George, NY
For full information Click Here.
Covering the Inbound Tourism Industry Since 1996
by Tom Berrigan
by Tom Berrigan
Wealthy Chinese Investors/Tourists Still Dominate EB-5 Visa Projects: Taking a cue from other parts of the country that have benefited from it, Maine officials moving forward with development of a regional center to connect foreign investors to projects in Maine, such as a $40 million Chinese medical tourism facility proposed for Auburn, Maine.
Under the EB-5 program, foreign entrepreneurs can get visas for investing in projects such as a proposed $40 million Chinese medical tourism facility in Auburn that create jobs for U.S. workers. The EB-5 Immigrant Investor Visa Program, created in 1990, provides a method for eligible immigrant investors to become permanent (or “green card”) U.S. residents by investing at least $1,000,000 to finance a business in the United States that will employ at least 10 American workers.” Most immigrant investors who use the EB-5 program invest in a targeted employment area (TEA) — a rural area or area with high unemployment — which lowers the investment threshold to $500,000. The EB-5 program is intended to encourage both foreign investments and economic growth.
One unintended byproduct of the program is the large number of Chinese investors looking to become long-term residents—or eventually, citizens—of the United States. The number of resident-investors under the program is limited to 10,000. Since the program became more popular a decade ago, investors from China have ranked at the top of the list. The table below shows the breakdown of the numbers of investors and their country of origin for 2016—the most recent year for which complete numbers are available.
Under terms of the program, states can set up regional centers to attract investors (rather than seek investors for single projects). The Maine Department of Economic and Community Development first considered becoming a regional center two years ago. It took another year to secure federal government approval.
He said the state’s new regional center already has some project leaders “that are very interested” in participating in the program. One of them is Miracle Enterprise, a China-based group that plans to turn the former Lunn & Sweet Shoe Co. factory on Minot Avenue into a five-star resort catering to rich Chinese patients seeking American medical treatments
George Gervais, commissioner of the Department of Economic and Community Development, told the Portland Press Herald that the new entity would not be the first regional center in Maine. Over the years, private groups – including the owners and executives of Saddleback ski resort in Rangeley – have started regional centers, but none has attracted any money to Maine
According to the Press Herald, Auburn Economic and Community Development Director Michael Chammings said he spoke to Miracle Enterprise’s project manager less than two months ago and the group was then working its business plan around the lack of a regional center.
He added, “I’m sure they’re happy the program has been put into place.”
by Tom Berrigan
—A new flight to Kansas City will start on May 25. It will operate three times a week.
—A connection to San Francisco will begin June 1st. Operating four times weekly, it is a re-start of a route that ended more than a decade ago.
—A new flight to Baltimore from begins May 28. The service will operate four times a week, and is also a re-start of a route served more than 10 years ago.
by Tom Berrigan
Looks Like a Record Year is Certain: The latest monthly data for international arrivals (for November 2017) to Canada seem to suggest that the year just ended will be the best ever for inbound tourism to the country. The snapshot below shows results for Canada’s 11 target markets. Note the number of source markets for whom November established “highest ever” records. In the second graphic below, not that the trend line is either at or above the line for 2016, which produced the second-largest total for all international visits to Canada.
Quick note: Through November 2017, Canada experienced a total of 19.45 million visitors for the year. The record total for a year is 20.179 million visitors, set in 2002. The second highest is 19.98 million, which was the total for 2016.
by Tom Berrigan
Governor Wants $100 Million, Some Legislators Want to Cut Request by Half: After a six-month battle last year that pitted Florida’s legislators against Gov. Rick Scott and almost all of the state’s tour and travel industry that also followed the departure of nearly every top official of Visit Florida, the state’s tourism marketing and promotion agency, they’re at it again.
Gov. Scott has asked for $100 million to fund the office; the House has a budget that calls for $76 million; and the Senate’s budget for Fiscal Year 2019 sets funding at $50 million.
In addition to the question of whether $100 million, $50 million or some level in between the two is a sufficient level of funding, the absence of certainty over a budget amount has the net effect of freezing any plans for new programs or promotions that would launch after a new Fiscal Year begins on July 1st.
The failure of state government officials to establish in timely fashion last year—no agreement was reached until June—put a choke on Visit Florida’s 2018 calendar of activities and programs.
Background: The saga of Florida’s budget woes had its de facto beginning with the forced resignation late in December 2016 of Will Seccombe, who was ousted from his position as president and CEO of the public-private sector organization over an expired $1 million dollar contract with a globally known rapper, Pitbull, whose efforts included a video of a scantily clad women performing with the rapper on the state’s beaches. (The video did not go over well with certain key members of the Florida legislature.) It seemed to conclude with the July 7 resignation of Alfredo Gonzalez, the organization’s vice president of global meetings and trade.
Seccombe was not the only December victim of the episode. Before he resigned, he had to terminate two senior agency officials—Vangie Fields, chief financial and operating officer; and Chief Marketing Officer Paul Phipps—who had the misfortune to be associated with the Pitbull contract and the organization’s refusal to make it public. Earlier in the day on which the three agency leaders were let go, state legislators had eliminated funding for the jobs of Phipps and Fields. The exodus of key officials seemed to conclude with the July 7, 2017 resignation of Alfredo Gonzalez, the organization’s vice president of global meetings and trade.
In the meantime, Visit Florida had a new president and CEO—Ken Lawson, a native Floridian who has no background in the travel and tourism industry, but whose resume included a tenure as U.S. Marine Corps Judge Advocate General, and who had spent 12 years in public service in numerous regulatory positions, including nearly six years as Secretary of the Florida’s Department of Business and Professional Regulation (DBPR).
state legislators finally gave into demands by Scott and the state’s tour and travel industry, there was further damage caused by language in the budget that called for the release of salary information from the agency’s member organizations; a fifth of Visit Florida’s DMO members left the state agency.
At the Moment: Shortly after the announcement of the State Senate’s budget mark, Gov. Scott issued a statement in which he said, “I completely oppose the Florida Senate’s proposal to cut Visit Florida’s budget by a third … After the devastating hurricane season we faced last year, we shouldn’t be playing games with our state’s tourism industry.”
Unlike the stand that state senators and legislators took a year ago, they seem to be slightly more conciliatory this year, with Sen. Wilton Simpson, chair of the tourism portion of the proposal in the senate budget, said the $50 million market was just a “starting point” for negotiations with Scott and the House.
The House is another matter. Last year, House Speaker Richard Corcoran held out for totally eliminating Visit Florida’s budget. He and Gov. Scott has a highly visible feud over the issue, which did not end until a special legislative session approved a $76 million budget—the same level proposed in the House for the upcoming 2019 Fiscal Year.
15 Technology Parkway South
Suite 205
Norcross, Ga 30092