Washington State has taken a major step toward rebuilding its tourism economy after Governor Bob Ferguson signed in March landmark legislation allowing the private sector to fund and manage destination marketing.
The newly enacted Engrossed Second Substitute House Bill 2325 paves the way for a self-funded industry assessment that will generate dedicated annual resources for State of Washington Tourism. The move marks the culmination of more than a decade of industry advocacy following the shutdown of the state’s tourism office during the recession-era budget cuts of 2011.
Under the new framework, tourism businesses across sectors—from lodging and attractions to restaurants and retail—will have the ability to create and ratify a funding model based on a small percentage of gross revenue. A ratepayer-led oversight board will guide the process, with final approval resting in the hands of participating businesses before any funds are collected.
Early estimates suggest the program could generate at least $25 million annually, significantly boosting Washington’s tourism marketing budget from one of the lowest in the U.S. to closer to the national average. Final figures will depend on industry participation as rule-making moves forward.
The funding will be used to relaunch domestic marketing campaigns aimed at increasing leisure travel, while also expanding international promotion and trade engagement. The focus will be on attracting higher-value visitors who stay longer and spend more, supporting a more sustainable, year-round visitor economy.
The legislation builds on earlier groundwork laid by a state-appointed advisory group, whose recommendations shaped the final bill—including six-year renewable terms, strong industry governance, and a broad base of contributing tourism-related businesses.
Lawmakers backing the initiative say it gives Washington a long-overdue competitive edge. Supporters across the sector also see it as a turning point that returns control of destination marketing to the industry itself.
Next steps include the formal rule-making process and an industry-wide referendum, expected to begin in the second quarter of 2026. If approved, the program will mark a full-scale return to coordinated statewide tourism promotion, this time driven and funded by the private sector.
“This bill provides the tourism industry with the tools to come together, invest in our state, and create a sustainable approach to promoting Washington and strengthening our economy,” said Rep. Dave Paul, prime sponsor. “With everything our state has to offer, this measure is a big step forward for Washington to claim a spot as a destination on the global stage.”
