Business leaders oppose Daley's 50 % tourism funding cut

Business leaders today came out against Mayor Richard Daley's idea to cut funding for the Chicago Convention and Tourism Bureau.

The convention bureau stands to lose as much as $1.5 million, or 10.6 percent of its budget under the mayor's budget proposal.

The mayor proposes two cuts of about $500,000 each. And one of the cuts is in money earmarked for use in obtaining matching state grants. That means the bureau could lose yet another $500,000 in state money. The mayor’s budget officials say there may be other ways for the organization to apply for state grants.

Jerry Roper, president and CEO of the Chicagoland Chamber of Commerce, opposed the cuts and called on business leaders to make up for any losses. “It’s a drastic measure at this stage of the game,” Roper said.

Daley often has said that the city must attract more conventioneers and tourists. Last month, he came to Gov. Pat Quinn's defense when a Democratic rival for governor had criticized the governor for tourism spending during tight budget times.

"You have to compete for these conventions," Daley said at the time. "We're competing against Atlanta, we're competing against Las Vegas and Orlando, so you have to put packages together to get the conventions here. At the same time, you have to publicize. You have to do marketing, worldwide and throughout the United States. You can't just sit back and say 'OK, they're going to come to the city of Chicago.' It just doesn't work that way, and I think Gov. Quinn has realized that."

But the mayor’s aides told aldermen the tourism funding cut is necessary because of falling hotel tax revenues, which supply the money for the city’s convention and tourism grant.

The bureau's yearly budget is about $14.1 million. Roper said that's far less than other cities that compete for the attentions of tourists.

“Las Vegas will outspend us now by probably 60 or 70 to 1,” he said.

Las Vegas' tourism promotion spending historically has outstripped Chicago by about a 10 to 1 margin.

Roper called for the city to revive its stagnant economy and raise revenues through a new casino and Wal-Mart stores.

City officials have balked at permitting Wal-Mart to build more stores. And Daley recently said he opposed a proposal from two aldermen who wanted a casino on the Near South Side site where the mayor had planned to build an Olympic Village before Chicago’s bid for the 2016 summer games was rejected.