Author: Caroline Beteta

Because of the irresponsible actions of a few Troubled Asset Relief Program (TARP) recipient companies, there’s recently been a movement to prevent TARP recipients from hosting, sponsoring or paying for any conferences, holiday parties or entertainment events during the year in which they receive funds. Because I have built my career on promoting many aspects of sound public policy for the Golden State, I applaud efforts by the federal government to stop abuse of TARP funds. However, the ill-informed, anti-meetings rhetoric that is a popular bandwagon these days is seriously harming a legitimate and relevant industry. Now is not the time to stop holding meetings and events, as they can actually help spur more economic growth.

During a recession, when everyone is bunkering down and cutting back, it’s very tempting for tourism agencies to scale back on tourism marketing. Some destination marketing organizations (DMO’s) across the country and in California are scaling back, for example, on international marketing and focusing more on drawing tourists from their own back yard – reminiscent of strategies used after 9-11.

As the Chair of the U.S. Travel Association, and President & CEO of the California Travel & Tourism Commission (CTTC), I believe it is even more critical than ever that we find ways to keep our investments in out-of-state domestic and international marketing going. As President Obama recently said in his State of the Union address, now is the time for long-term investing, an opinion shared in MediaWeek by Sir Martin Sorrell, chief executive of WWP Group. Sorrell said, and I agree, “When times are tough, it’s time to invest, not cut. This comes from years of research dating back to Ogilvy’s Alex Biel and Millward Brown interaction surveys. All show that if we cut marketing during such times, the impact is damaging and it can take you longer to get back to where you were.”

Governor Arnold Schwarzenegger and fellow border governors from Arizona, New Mexico, Texas and various Mexican states have signed an agreement that urges the U.S. Department of Homeland Security (DHS) to remove obstacles to Mexican travel into the United States, and provides recommendations that will improve security and ease of travel.

Since Mexico is California’s number one inbound market, generating approximately $1.58 billion in spending, declines in that market would have a major impact on our economy, including loss of jobs. In my role as national chair for the Travel Industry Association, I’m also concerned about what impeding travel would mean to the U.S. travel industry and economy. Just a five percent decline in overnight visitation from Mexico would mean a loss of approximately 700,000 travelers and over $400 million in spending – with a disproportionate impact on America’s border states, especially California.