Maine Government News
back to Current News Governor Unveils Rural Economic Development Plan
March 31, 2005
Governor's Office
CONTACT:
Joy Leach, 287-2531
Jeff Sosnaud, 624-9800
AUGUSTA – Governor Baldacci today unveiled a new economic initiative aimed at developing and expanding a range of tourism opportunities in Maine’s rural communities. The Maine Nature Tourism Initiative involves tax incentive legislation designed to encourage new investment in outdoor recreation businesses and a series of recommendations that have been developed for the Governor by Texas-based FERMATA, Inc., a nationally known tourism development consulting firm.
“Natural resources and tourism are vibrant elements of our State and our economy,” Governor Baldacci said. “This initiative will enable us to make the critical connections between our resources, tourism and economic development; to maximize our resources and by doing so to propel Maine as the premier tourist destination. With appropriate targeted investments, we can use the unique beauty of our landscape to bring new dollars into the state and help Maine’s rural communities as they work to diversify their local economies."
Under the proposed legislation known as the Pine Tree Recreation Zone Act, both new hotel or resort proposals, as well as existing sporting camps, may qualify for a number of tax incentives that would enable them to create new jobs and pump new dollars into rural economies that are seeking to diversify. Representative Stan Moody, D-Manchester, is the lead sponsor of the bill.
“Our hotels and sporting camps are part of the significant network of small businesses that employ the majority of our workforce,” Representative Moody said. “It is critical that we give them the support they need in order to remain competitive. The tax incentives offered through the Pine Tree Recreation Zone Act will help existing accommodations upgrade their offerings and enable new businesses to enter the market.”
Proposed tax incentives include:
Refund of 20 percent of approved project costs through refundable tax credits;
Sales tax exemption on construction supplies and equipment; and
Refund of new incremental meals and lodging tax generated for the first five years; refund must be used to implement an approved marketing plan.
In addition to the proposed legislation, the Governor also rolled out a number of recommendations that have been developed by FERMATA, Inc., which the Administration retained in September of 2004 to assess Maine’s opportunities in nature-based tourism, one of the fastest growing niches in the nation’s travel industry. FERMATA, Inc. will begin working with stakeholders in three rural pilot project areas: the Western Mountains, the Highlands and Downeast. The projects include:
Interpretive visitor centers;
Incorporating numerous trailheads, historic sites, and nature centers into highway-based thematic itineraries; and
Developing a uniform guide and map publication template.
These projects will provide Maine visitors with accurate and comprehensive information on opportunities to experience the state’s world-class natural, historical and cultural resources.
“Tourism is an increasingly competitive industry around the world. I am committed to making the investments necessary to keep Maine high on the list of places that folks from away just have to visit in order to appreciate all that we have to offer,” said the Governor.
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