Ruth Toomey
They’ll be back soon, the thousands of high-season tourists who stand in line at our bakery, stroll the downtown business district along High and Cross Streets, and attend our seasonal historical and musical festivals. A good time is usually had by all in Chestertown, as word is out that this is a quaint and scenic river town with much to offer families and visitors of all ages.
And a good, high-season sales tally that results from those visitors is the hope of every small business owner in our area.
A substantial portion of the word that gets out about why Chestertown is such a great place to visit at all times of the year is delivered with the help of funds appropriated to Maryland’s Tourism Development Board’s (MTDB) budget, vis à vis the State’s annual budget.
Recently, the State’s Department of Legislative Services (DLS) recommended a budget reduction that would take the mandated level of funding to $6 million, which would cut the fully funded level of $12.4 million by more than half in Fiscal 2026.
This has, in turn, caused immense concern among members of the Maryland Tourism Coalition, citing that the State risks losing visitors and their tourism dollars to neighboring states resulting in potential revenue decline, job losses, and economic downturns within our local communities.
The recommendation, which is being disputed by the Maryland Department of Commerce, has spurred efforts to challenge the proposition at a recently held Senate Sub-Committee Hearing where advocates from the Maryland Tourism Coalition and others testified as to both the immediate and long-term economic consequences for the State.
We spoke with Ruth Toomey, the Executive Director of the Maryland Tourism Coalition, (MTC) which has been in Annapolis several times over the course of the last legislative session to object to the cuts on behalf of their business coalition members and others impacted by the inevitable loss of revenue that comes with cutting tourism marketing dollars.
While a date for a final face-to-face opportunity by way of a public hearing on the matter has yet to be set, Toomey says, it is not too late for concerned business owners to have their voices heard.
“So, businesses really need to write their legislators, write their committee members saying, ‘Don’t cut this and this is why; it’s going to hurt me in these ways,” explains Toomey.
She cited a recently proposed 2.5 percent business-to-business tax for services in Annapolis being tabled as evidence that ongoing pressure from business owners can make a difference. (Republican legislative leaders recently relayed in a WBAL-TV interview that the 2.5% business-to-business tax on services has been pared down and will now be realized as 3% consumer tax on information technology and data consulting services.)
“Why did that happen?” asked Toomey. “Because there were some 400 letters sent to say that this is a bad bill. They had over 100 people testify in person that this is a bad bill.”
As it stands, the shortfall, according to the Coalition, would greatly impact, “MTDB’s ability to market, sell, and develop Maryland as a competitive travel destination,” as under the proposed amount $2.5 million is already mandated for external grants, leaving a surplus of just $3.5 million for the MTDB to implement its domestic and international, projects, and partnerships. In effect, leaving Maryland’s tourism efforts at a severe disadvantage to neighboring states that investing more aggressively in tourism.
Chestertown small business owner, Heide Hood, of Coco’s Pet Center says she is not just concerned about the immediate impacts that less tourism dollars bring.
Heidi Hood, owner of Coco’s
“Tourism builds a foundation for long-term economic success,” says Hood. “Without strong state support, Maryland risks losing ground to neighboring states that actively promote their attractions and invest in destination marketing.”
Hood, who only recently was informed about the cuts, says she feels less visitors translates to less revenue for hotels, restaurants, and attractions, which will ultimately lead to lower tax revenues that fund essential public services.
Jamie Williams, Director for Economic and Tourism Development in Kent County, echoes Hood’s and Toomey’s apprehensions.
“Kent County is deeply concerned about the potential impact of a 50%-plus reduction in the State’s Tourism budget,” says Williams, adding that Maryland was already spending less than neighboring states.
“Tourism is always economic development, and the businesses in our downtown shops, restaurants, and surrounding lodging establishments rely heavily on tourism to survive and thrive. Reductions in funding would directly impact their success and the overall health of our local economy.”
Williams cited the Maryland Office of Tourism Development for the vital ways in which it strategically markets the State to attract visitors, including maintaining a comprehensive website, and offering strong programs that help highlight Maryland’s unique features, such as our Great Chesapeake Bay Loop, our role as the world’s most powerful Underground Railroad storytelling destination, and the varied scenic and historical aspects that set Maryland apart from neighboring states.
In addition to lowering Maryland’s competitive advantage for tourism dollars, and the economic and job losses that come with that, the MTC predicts insufficient funding can also result in a neglect for maintenance and enhancement of our attractions and public spaces, which may result in diminishing both visitor experiences and residential quality of life.
Conversely, the MTC notes that maintaining full funding will ensure that tourism remains a critical economic driver. Department of Commerce research for 2023 indicates that, 45.1 million Maryland visitors generated a gross economic impact of $31.4 billion, contributing $2.4 billion in state and local taxes.
Other relevant numbers include the support of some 190,660 jobs that provided $10.1 billion in total labor income.
Most importantly, says Toomey, whose Coalition touts its legislative advocacy as one of its primary membership benefits, tourism’s economic impact saved every Marylander a total of $1,027 in taxes last year—a significant quality of life sidenote.
“Our (MTC’s) education is not just educating our members, it’s educating our legislators as to why their bills are good or bad for tourism, but it’s also about educating our residents as to why tourism is important.”
Add your voice to this conversation by accessing the following legislative links: Senate Budget and Taxation & House Appropriations
Chris Gordon says
Lisa, I’m not sure I understand your purpose.. Yers ago my wife and I visited Chestertown and knew this is where we wanted to live. The tourist board had nothing to do with it. I’m sure there are visitors who have come to the same decision and are now our neighbors.. If other visitors just come to spend a few dollars before heading home, they are welcome. They come for the same reason my wife and I did. One thing that all of us can agree on is that we want Chestertown to remain Chestertown. I don’t know what your tourist board has in mind but please be careful not to change the Chestertown we love.