Ball State study finds tourism advertising boosts economy

A Ball State University study has found that tourism advertising could increase economic activity in Indiana and generate more tax dollars to the state.

Michael Hicks, director of Bureau of Business Research, said every dollar Indiana's state and local governments spend on tourism advertising yields 15 tax dollars.

He said he and his team examined the relationship between tourist attraction incomes and tax rates in hotels and motels, then the spending of convention and visitors bureaus, local organizations that are funded by the tax.

Hicks said they found that for every tax dollar spent on convention and visitors bureaus yielded 200 dollars. The 200 dollars was split between eating and drinking at hotels, motels, museums, and the use of these locations turns into about 15 dollars of taxes.

The Indiana Association of Convention and Visitors Bureaus contracted Ball State to lead the studies.


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