Travel And Tourism Promotion
Obama Signs the Travel Promotion Act Into Law
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President Obama signs TPA into law, March 4, 2010. |
The Travel Promotion Act (TPA) was signed into law on March 4, 2010. This now opens up the next phase of this multi-year economic plan: its implementation. Over the next year, AH&LA will announce the various programs emerging from this tremendous legislative accomplishment that will help the economic situation of the industry.
For more information about travel and tourism issues in the current Congress, or for state-by-state tourism statistics, you may also visit www.poweroftravel.org.
CALL TO ACTION
There is no call to action at this time. AH&LA and the rest of the U.S. travel industry is very pleased that President Obama signed TPA into Federal law on March 4, 2010.
AH&LA is working with the U.S. Travel Association in creating a plan for the Act's implementation, now that President Obama has signed the bill. AH&LA will post on this Website more information about the industry's implementation plan and TPA's next steps once they are agreed upon by all parties later this year.
The next steps will be for the Corporation for Travel Promotion to appoint its Board members, hire staff, and secure the funding aspects described in the law. It is estimated that the first ad campaign will begin in mid-2011.
Nearly every other country in the world has an official program to welcome international tourists to their nation. The United States stands alone in its absence of a promotion program, and the lack of a coordinated campaign shows in the decline of visitors to our marvelous country.
The United States welcomed 633,000 fewer overseas visitors in 2008 than in 2000, remaining below pre-9/11 levels for the seventh consecutive year. Declines in visitation since 2001 have left an estimated $182 billion shortfall in new visitor spending and $27 billion in lost tax revenue. And with the absence of these travelers, 245,000 U.S. jobs were not created. So far, in 2009, the decline in travel continues, with 10% fewer visitors coming to American in 1Q09.
The United States has no means of direct communication with travelers, leaving all our nation's messages, new security notices, and travel improvements to be filtered by others, including foreign media. America's competitors are spending the equivalent of billions of dollars to attract visitors, while we spend nothing.
The record of the government and Congress in leading the promotion of the United States overseas over the last fifteen years has been spotty. The elimination of the United States Travel and Tourism Administration (USTTA) in the 1990s created a critical need for a new national tourism organization. The 1995 White House Conference on Travel and Tourism recommended the establishment of a public/private national tourism organization to fill the void created by the loss of the USTTA and be responsible for promoting and marketing the inbound travel market.
In the 104th Congress (1995-96), legislation was passed by Congress and signed into law by President Clinton establishing, with a federal charter, the United States National Tourism Organization (USNTO) to promote travel to the United States. A United States Tourism Board also was formed as a result of this legislation, and AH&LA representatives occupy five of the 48 board seats. On September 30, 1999, the USNTO Board voted to disband if Congress did not act to authorize funds for tourism promotion by the end of calendar year 1999. That legislation was not approved, and the USNTO suspended its operations. On November 16, 2001, the American Travel Promotion Act (H.R. 3321) was introduced, which would provide funds to state tourism offices to leverage their travel promotion efforts. Unfortunately, it was not passed by either the House or Senate.
After a strong, comprehensive lobbying effort by AH&LA, the House and Senate in February 2003 approved a $397.4 billion appropriations bill that included $50 million for international tourism promotion and established the United States Travel and Tourism Promotion Board to help advise the Secretary of Commerce on expending the funds. The 15-member Advisory Board, which held its first meeting in September 2003, included four AH&LA members. Unfortunately, in January of 2004, $40 million of the funding was rescinded in the FY 2004 omnibus appropriations bill and a subsequent departmental budget cut further reduced the funding to roughly $6 million. After extensive lobbying by AH&LA, $10 million of the funding was restored to the program.
In the 110th Congress (2007-08), three pieces of legislation affected tourism promotion. The most notable was the passage of the Travel Promotion Act (then-H.R. 3232) by the House on September 25, 2008.
STATUS OF LEGISLATION IN THE CURRENT CONGRESS
In the 111th Congress (2009-2010), the new Travel Promotion Act (S. 1023) was introduced by Sens. Byron Dorgan (D-ND) and John Ensign (R-NV) on May 12, 2009. The bill is nearly identical to last year's version. It would create a Corporation for Travel Promotion that would develop a $100 million international advertising and educational campaign to promote travel to the U.S. It would also relay information about U.S. security and entry policies to overseas consumers and travel marketers. The campaign expenditures would be funded by contributions from the industry, plus a proposed $10 fee imposed on foreign visitors from Visa Waiver countries who are now required to obtain an electronic "visa" before arrival. The industry contributions would be in cash or "in-kind" services.
The Act would establish a public-private campaign jointly managed by government and the private sector -- at no cost to the American taxpayer. The Act would help attract 1.6 million new international visitors, create $4 billion in new spending, and drive $321 million in new federal tax revenue. This would help the U.S. lodging industry in a time where every visitor is critical.
This version of the bill calls for an 11-member board of directors for the proposed corporation, down from 14 members. However, it drops the earlier plan to create a new undersecretary post for travel and tourism in the Commerce Department, a requirement which helped stall the bill in the Senate last year.
Early action on the bill occured first in the Senate. On May 27, 2009, AH&LA President Joe McInerney testified in Duluth, Minnesota on the importance of business travel at the Senate Subcommittee On Competitiveness, Innovation and Export Promotion field hearing chaired by Sen. Amy Klobuchar (D-MN). The Senate Commerce, Science and Transportation Committee passed S. 1023 on a voice vote May 20, 2009. Intial opening statments by Sen. Klobuchar were made on the Senate floor on June 11, with AH&LA sending an Advisory to its membership urging them to contact their Senators to support the Act. A 90-3 vote for cloture occured on June 16, but because of partisan wrangling over unrelated amendments, the bill was pulled from consideration by Senate Majority Leader Harry Reid (D-NV) on June 22.
AH&LA and the travel industry aggressively lobbyied the Senate to return to their debate on this very important bill, which was successful when Sen. Reid announced on August 5 that there would be another vote on September 8. It is difficult to reschedule legislation once it faces debate because of the crowded Senate calendar, so this reconsideration by Senate Majority Leader Harry Reid was welcome news.
After an hour of debate, the September 8 vote for cloture passed 80-19, moving the bill forward to a final vote. Finally, the Senate passed this historic piece of legislation late in the afternoon of September 9 on a 79-19 vote. The bill was sent to the House, but because the Senate bill contained a revenue measure, the House exercised its Constitutional powers to send the bill back to the upper house for consideration (a parliamentary procedure called 'blue-slipping").
Undaunted, House TPA supporters then worked to have the TPA bill text attached to an already-existing House bill (H.R. 1035). The House resoundingly passed the bill early in the evening of October 7, 2009, on a 358-66 vote. However, due to several procedural issues, the legislation was delayed and must face another House and Senate vote again. AH&LA and others lobbied the House, which recognized the importance of this legislation to the industry, especially in its economic boost, to quickly hold another vote. TPA House supporters and House leadership recognized this, and on November 6 the House voted on a rule (H.Res. 896) that passed TPA by voice vote.
The bill was sent back to the Senate, where AH&LA and other travel associations lobbied Senate leadership to reschedule a vote on this important legislation. Late in the evening of February 26, 2010, the Senate passed for the last time the Act on a 78-18 margin. The Senate voted on H.R. 1299, which was the legislative vehicle used by the Senate to properly enact TPA within Senate rules.
President Obama signed the bill into law on March 4, 2010 (Public Law 111-145).
The House version of the bill (H.R. 2935) was introduced June 18, 2009. The bill was cosponsored by Reps. William Delahunt (D-MA) and Roy Blunt (R-MO) and has 120 cosponsors. Both Representatives supported the House passage of TPA on September 7 and on November 6.
MYTH - FACT
MYTH: Promoting travel is corporate welfare.
FACT: Promoting travel is critical to America’s economy and public diplomacy. Overseas travel to the United States was down eight percent in 2008 compared to 2001. In contrast, at the same time the global overseas travel market grew nearly 30 percent, amounting to 35 million new travelers. This legislation, combined with visa and entry reforms, will bring millions of dollars into the United States economy, create hundreds of thousands of jobs, and have a 6:1 return in tax revenues. The legislation will also strengthen America’s public diplomacy, as those who have visited the U.S. are 74% more likely to have a favorable opinion of the country.
MYTH: America’s security policies are understood and increased communications are unnecessary.
FACT: Travelers are confused, feel unwelcome, and are choosing alternative destinations. In an understandable effort to identify terrorist and criminal threats, the U.S. government imposed a myriad of new security programs since 9/11. These programs impact all phases of travel, including the visa application, visa interview, use of personal data supplied to airlines and cruise lines, fingerprinting, and exit requirements. These programs have actual and perceived impacts on a person’s legal ability to travel to the U.S., privacy concerns, and financial implications. According to a 2006 survey tby the Discover America Partnership, potential international travelers are more concerned about treatment by U.S. immigration officials than crime or terrorism. Unfortunately, there is no coordinated effort by the U.S. government today to communicate these policies to prospective or actual travelers, with the predictable result that they feel confused and unwanted as potential visitors. That's not good marketing by anyone's standards.
MYTH: International travel to the United States is strong and increasing.
FACT: According to the U.S. Department of Commerce, overseas travel to the United States is down 8% post 9/11. Only when surging Canadian and Mexican numbers are included does travel appear to be increasing. These travelers, while important, do not stay as long, spend as much, or play as critical a role in America’s public diplomacy efforts as do non-North American international visitors.
MYTH: International traveler spending is higher than ever.
FACT: International traveler spending has declined 16.8% in real dollars. Measuring in absolute dollars fails to account for inflation. Individual travelers who still come to the United States are likely spend more, because of the relatively weaker dollar. Overseas visitors to the United States spend more and stay longer than other travelers, spending an average of $4,500 per person, per trip.
This underscores the lost opportunity in jobs, spending, and tax revenues left on the table by the 20% of visitors who chose a different destination. In 1996, travel created a $26 billion positive trade balance for the United States. Today, that trade balance has slipped to $7 billion. The decline in travel to the U.S. has cost $182 billion in visitor spending, $27 billion in tax receipts and 245,000 American jobs, according to www.ustravel.org.
MYTH: The travel industry should run an American promotional program on its own.
FACT: The travel industry is not the best messenger of American security policies and should not unilaterally create an American “brand.” The greatest deterrents to visiting the United States today are misperceptions of the American entry experience and a lack of information on American security policies. Individual private companies are not appropriate messengers of American security policies and improvements to those policies. The purpose of a nationally-coordinated program is to accurately communicate policies, provide a brand for the country, and enhance the nation’s competitiveness by creating a bigger playing field on which individual destinations can compete.
Those who have visited the United States are 74% more likely to have a favorable opinion of the country than those who have not visited our nation. As we seek to build stronger allies and more friends around the world, these visitors to our country present an extraordinary opportunity to conduct positive "people-to-people" diplomacy.
For more information, contact AH&LA Vice President of Political Affairs Lisa Costello at (202) 289-3124, lcostello@ahla.com.
(Updated March 2010)
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