Mar. 26, 2003 - SAN DIEGO, Calif.- Imagine you've finally finished restoring a classic car, and suddenly you discover you have no money left to drive it. 

That's the picture California's tourism industry painted of itself Tuesday as it mobilized leaders in a campaign to halt proposed budget cuts that would eliminate the Division of Tourism. 

The move, proposed by Gov. Gray Davis as he pares a $34 billion deficit, would effectively cut tourism marketing funds in half, and almost certainly knock California from its perch as the most-visited state in the nation. 

Officials from big tourism companies like Disney and small venues like Santa Catalina Island signed petitions, conceived strategies and made plans to persuade legislators that tourism deserves $7 million in funding because it generates significant jobs and tax revenue. 

They met this week at the annual California Conference on Tourism. The concern was that California could lose market share after working the past seven years to become the nation's tourism leader, attracting 326 million visitors last year. 

"We have to get the message across to our legislators that this is an investment, not a cost," said Bob Roberts, vice chair of the California Travel and Tourism Commission. "The more market share we get, the more jobs and tax dollars for the state." The industry employs more than 1 million people in California and the industry projects it could generate 100,000 new jobs over the next four years. It also produces about $4.7 billion in tax revenue. 

Roberts, who also directs the California Ski Association, pointed to Colorado as an example of what happens when marketing funds are cut. After Colorado stopped funding tourism in 1993, its share of pleasure trips dropped 30 percent. Colorado also lost its position as the No. 1 ski destination in the country -- to California. 

Since then, Colorado has restored state funding. 

California's total tourism budget was about $14 million last year -- $7.3 million from the state and $6.8 million from assessments on tourism-industry operators. The joint-funding concept was approved by businesses in 1998. 

California competes for market share with other states that have significantly bigger budgets: Hawaii, $71 million; Florida $30.6 million; and Texas, $30.3 million. 

The state budget cuts come on top of proposed cuts at the county level. 

The Orange County Tourism Council could lose 75 percent of its funding and the Office of Protocol could be closed. 

Terri Taylor Solorio, president of the California Travel Industry Association, urged members of the professional association to write or call their legislators and to participate in the industry's Public Affairs Day on April 29 in Sacramento. 

Officials acknowledged they have a tough road ahead as critical programs such as education, safety and health services also will lobby to avert budget cuts. 

Some CalTIA members questioned the wisdom of the campaign, given tourism's history of fighting for funding, and suggested investigating a model with strictly private funding. 

A few officials said they expect the final budget this summer will include at least some funding for tourism. But with the fiscal year beginning July 1, the California Travel and Tourism Commission has developed three marketing plans -- one that assumes no state funding; one that projects the $7 million it got last year, and another that counts on about half that much. 

Cynthia Harriss, the president of the Disney Resort in Anaheim, speaking on one of the panels Tuesday, urged tourism officials to work together as they face yet another crisis. They've already been hard-hit by the economic slowdown, the aftermath of 9-11and the effects of the Iraqi war. 

"Now's the time for the state to invest in tourism," Harriss said. "The funds are critical to generating jobs, driving the economy and maintaining California as a tourist destination." 

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(c) 2003, The Orange County Register, Calif. Distributed by Knight Ridder/Tribune Business News. DIS,