Oct. 1, 2003 - TAMPA, Fla.--The Tampa Bay Convention and Visitors Bureau faces a year of belt-tightening in the fiscal year that begins today because its finances are tied to the tourism it promotes.

"We've just had probably the toughest budget process in the history of the organization," said Paul Catoe, chief executive of the nonprofit corporation that markets Hillsborough County to prospective visitors. "It doesn't look good."

The bureau, which has a staff of 37, will stick with a $6-million budget that is virtually the same amount it spent in the previous year. The bureau gets all but about $500,000 of its budget from a tax on hotel rooms.

Leisure travel rebounded well this summer, but Hillsborough hotels get about half their business from groups booked for meetings or conventions and business travelers.

While Tampa hotels benefited from two large religious group meetings this summer, the meetings and convention business is typically booked three to five years ahead. So 2004 bookings still are a reflection of business meeting activity booked after the terrorist attacks of 2001.

"We're still paying the price from 2001," said Catoe. "We've seen strong booking activity for 2005 and beyond, but 2004 still looks a bit sparse."

"Business travel is coming back gradually, but it all hinges on an improved economy," said Don McDaniel, the bureau's new chairman who is general manager of the Grand Hyatt Tampa Bay.

The bureau is maintaining its advertising spending at $1.1-million. Proposals for activities that would have added up to a 12 percent spending increase were dropped.

The bureau will be more picky about which travel/trade shows to attend and send smaller delegations to them. The agency, which is facing reduced dues income from its members, also is looking for new revenue sources. For example, it is trying to make a profit center out of industry events it stages, such as Tuesday's annual luncheon at the Tampa Marriott Waterside that drew 550 people. Thanks to donated services and discounts, the agency made a profit of $10,000 on the fete.

While the tourist industry rebounded in 2003, hotel rates and occupancy still lag behind pre-Sept. 11 levels. Hotel tax collections in Hillsborough County are forecast to hit $15-million in the new fiscal year. That's $500,000 more than fiscal 2002, but $2.7-million less than 2001.

The tax also is used to pay off some of the construction debt of facilities, such as the St. Pete Times Forum. The Hillsborough County Commission has budgeted tourist tax money conservatively this year because of the weak collections of the past two years, said staff director Marilyn Hett.

The commission today is expected to approve separate hotel tax allotments to help operate the Tampa Convention Center ($1.5-million), several chambers of commerce (a combined total of $155,000) and $96,000 each to the Lowry Park Zoo, Florida Aquarium and Museum of Science and Industry for advertising in other counties.

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(c) 2003, St. Petersburg Times, Fla. Distributed by Knight Ridder/Tribune Business News.