A struggling economy has state governments considering whether advertising is a luxury or a necessity.

For states that are heavily dependent on tourism, the matter is taking on a new urgency as every expense is closely examined by elected officials who have rapidly declining revenues and a slew of worthwhile programs to fund. All 50 state legislatures will meet next year, with most facing budget cuts.

Here in the snow-covered mountains of Utah, Gov. Jon Huntsman Jr.'s proposed budget calls for slashing the state's tourism advertising by $4.7 million -- or 38 percent -- next year as the state grapples with a $1 billion shortfall.

"I think what will happen is we'll have to spend the money even smarter than we have in the past," said Kim McClelland, chairman of the Utah Board of Tourism.

States have similar challenges, but are taking different approaches.

Tourism -- like all industries -- is being hurt by the global economic crisis. State revenue from transportation, sales and hotel taxes have plummeted and many companies have been forced to lay off workers.

"Whether it's state government or business, in times of recession the first thing [corporate finance officers] do is look at advertising and cut it," said Jon Morris, a University of Florida advertising professor. "It's an easy thing to get rid of. ... The problem is, once you do that it's hard to get back to where you were. You start losing image, you start losing traction.

"In the case of a particular destination and a particular product, it could lose enough of its image that it may never recoup it completely because something else takes its place."

That presents opportunities for states that increase or even maintain their spending to make significant gains over their competitors, he said.

Losing momentum could hurt Utah. For years, the state spent about $900,000 a year on advertising, or roughly the same that the ski resort town of Vail, Colo., spent advertising itself as a summer destination.

When Huntsman took office in 2005, he made tourism a cornerstone of his economic development plans. Advertising spending topped $11 million this year and the state is beginning to chip away at Colorado's lead as the nation's top ski destination.

State tourism officials say Utah is getting back $11 in tax revenue for every $1 it spends, according to study results released last month.