Call to Order and Roll Call
The 3rd meeting of the Interim Joint Committee on Economic Development and Tourism was held on Thursday, September 15, 2016, at 11:00 AM, at Shelby Valley High School in Pikeville, Kentucky. Representative John Short, Co-Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Representative John Short, Co-Chair; Senators Chris Girdler, Ernie Harris, Wil Schroder, Reginald Thomas, and Mike Wilson; Representatives Kevin D. Bratcher, George Brown Jr., Leslie Combs, Tim Couch, Daniel Elliott, Chris Harris, Kim King, Brian Linder, Tom McKee, Terry Mills, Ruth Ann Palumbo, Fitz Steele, Wilson Stone, and Russell Webber.
Guests: Don Parkinson, Secretary, Tourism, Arts and Heritage Cabinet; Seth Wheat, Office of Adventure Tourism; Jared Arnett, Executive Director, SOAR.
LRC Staff: John Buckner, Chip Smith, and Karen Brady.
Tourism Trends in Appalachia
Secretary Parkinson stated that tourism is the third biggest industry in Kentucky, adding $13.7 billion to Kentucky’s economy in 2015. In the eastern Kentucky, tourism has a $1.8 billion economic impact. Historical and cultural tourism is one aspect that has become important for the state. Other areas bringing visitors to Kentucky are the Kentucky Artisan Heritage Trails, Civil War: The Home Front, and Bon Appetit Appalachia. Coming soon will be a focus on statewide regional meals and the Covered Bridge Trail.
Secretary Parkinson spoke about historic preservation. In 2015, there was a tax credit for turning liabilities into assets. The state has invested $18 million for aesthetic/safety improvements at Kentucky State Parks. The estimated total investment in Appalachia for Kentucky state resort parks is $5.3 million.
The Kentucky Department of Fish and Wildlife contributes $5.9 billion in annual economic impact to the state. This comes from hunting, boating, fishing, and wildlife watching. Secretary Parkinson mentioned the 1997 Elk Restoration Program and stated that there is potential for this to be much bigger than it is right now.
Secretary Parkinson said the proposed visitor center project at the Appalachian Wildlife Center in Bell County will be for elk viewing. The area is also on the flight path for migratory birds. He hopes this will be operational in 2018 or 2019.
As for the film industry, Secretary Parkinson said that, over the last six years, Kentucky has approved the scripts for 23 movies, of which 12 were made and 12 have been made in the state this year. Kentucky is getting enormous activity for movies. To make the incentive program even better, Secretary Parkinson said the state must build film studios, and there is a need people who are educated to work in film. The administration is working with technical schools and postsecondary education on this issue.
Co-chair Short invited students attending the meeting to come forward if they had any questions. Several students took advantage of the opportunity and prefaced their questions with comments about the economic crisis faced by the community and in eastern Kentucky because of the downturn in coal mining. Families that not long ago were supported by jobs related to coal mining are now often faced with unemployment and economic hardship. Several students expressed skepticism about the viability of tourism-related jobs and questioned whether the jobs were annual, full-time jobs or seasonal, part-time positions and whether the wages paid would be sufficient to support a family. The also questioned how many jobs would be necessary to replace jobs lost due to the collapse of coal mining.
Adventure Tourism
Seth Wheat stated the mission of Kentucky Adventure Tourism is to promote and develop opportunities for outdoor recreation all over the commonwealth of Kentucky. He believes there is a tremendous opportunity to improve and capitalize on current resources.
Mr. Wheat explained that the Cross Kentucky Master Trail Plan does two important things—it gives an overview on how to build trails and lays out trail routes. Two of the state’s longest trails are in eastern Kentucky. Water trails are very important to eastern Kentucky’s trail development.
Mr. Wheat believes eastern Kentucky can take advantage of the Trans America bike route, which crosses the country from the Pacific to the Atlantic. This route already runs through Kentucky and is an opportunity for the state to attract its portion of those visitors.
Mr. Wheat stated the importance of connecting to trail systems and giving adventure tourists the opportunity to make an economic impact while they are in Kentucky. He also discussed the physical health benefits provided by access to outdoor recreation.
Kentucky is the only state to offer a Trail Town program on a statewide level. The primary goal of the Trail Town program is to get communities to connect to their existing natural resources. The main benefit of becoming a trail town is that the community will be branded as such. Trail towns can be located anywhere in the state, but most of them are primarily located in eastern Kentucky.
In response to a question from Representative McKee, Secretary Parkinson stated that P3 legislation offers the best opportunity in regards to upgrading, expanding, and renovating state parks.
In response to a question from Senator Harris, Mr. Wheat explained that trails are made differently depending on what part of the state it is located in, and also varies as to what type of trail it is.
Responding to a question from Senator Schroder, Mr. Wheat emphasized the importance of trail development being handled at the local level. Most trails are designed on a case by case basis, as to what best suits the local community that it is in and the type of visitors it will attract.
Economic Development Potential in Eastern Kentucky
Jared Arnett discussed the importance of job creation and diversification in eastern Kentucky. He compared a statistic showing that, for every 100 people who are 18 years and older, Fayette County has 60 jobs while Floyd County has 28 jobs.
Mr. Arnett stated that there are as many distressed counties in Kentucky (38) as there are in 12 other states combined. These counties are in the bottom ten percent in the country economically. Eastern Kentucky needs to change the way it thinks about economic development, and that is what SOAR is for—to serve as a facilitator of partnerships, strategies, and priorities of the system that creates jobs in eastern Kentucky.
SOAR has numerous partners working on industrial development in the region, and this has helped to be more competitive in industrial recruitment. Mr. Arnett stated the importance of showcasing the workforce of the region, and being able to tell a company about laid-off miners’ skills such as welding and electrical work.
Mr. Arnett stated that the future of the Appalachian region hinges on its ability to embrace technology and to be a participant in the digital economy. Several of the community colleges teach the skillsets that are valuable in the digital economy. There is also a pilot program in Paintsville that guarantees those who complete it a job working remotely in eastern Kentucky for a tech company in Louisville.
Mr. Arnett discussed an immediate short-term opportunity in certified fiber optics. This gets coal miners retrained and working in a new career and industry with comparable wages.
In response to a question from Representative Bratcher, Mr. Arnett stated that SOAR is 60 percent privately funded.
Co-chair Short invited students to ask any questions that they may have regarding economic development in eastern Kentucky. They expressed concerns about the lack of jobs in the region, compelling many to move to central and northern Kentucky to find employment. Many students were dismayed about a seemingly disproportionate share of educational opportunities and institutions being located in “the Golden Triangle,” which reinforced the idea that students must leave their communities to further their education.
There being no further business, the meeting was adjourned.