In late May, the U.S. Senate Committee on Commerce, Science & Transportation passed the Travel Promotion Act, bringing us a step closer to being a world-class contender for international travel. Most Americans would be surprised and embarrassed to know that we are the only major country without any kind of national tourism promotion budget. Even so-called “third world” countries have travel promotion budgets, including television advertising campaigns in many parts of the world.
After Sept. 11, the U.S. government was reluctant to bail out the travel industry, which lost billions of dollars, causing many destinations to cut staff and marketing budgets. Eight years later, with confusion over U.S. security and the recession in full swing, we have not yet recovered pre-9/11 visitation from international markets.
Despite a weak dollar that made the U.S. a travel bargain, and 48 million more people around the world traveling “long-haul,” the United States welcomed 633,000 fewer overseas visitors in 2008 than in 2000. Had the U.S. kept pace over the last eight years with the average growth in global overseas travel, we would have received an additional 58 million visitors, $182 billion in new visitor spending and $27 billion in new tax receipts. In 2008 alone, overseas travel would have created 245,000 jobs. Since we have not had a national promotions budget like most other countries, we have lost ground. A U.S. Travel Association analysis of government data reveals that the travel industry will lose nearly 450,000 jobs between 2008 and 2009.
Since international travelers stay longer and spend more, this is not great news for the U.S. – or California. In the Golden State, preliminary feedback indicates that international tourism will be down 2 percent in 2008. To stay ahead of the recession curve, CTTC has maintained our recently expanded international marketing budget to increase California’s share of voice globally while many other destinations cut back. However, it is still a struggle for destination marketers in California and the rest of the U.S., as many international consumers continue to believe that U.S. travel is a hassle. Many global travelers seek alternative countries for their vacations, causing U.S. travel suppliers to cut back on marketing and jobs at a time when we need them the most.
The Travel Promotion Act would help us combat this problem by providing a national promotion budget for the first time, allowing us to better educate international travelers about U.S. security policies and help keep the U.S. top of mind as a vacation option. For example, the Western Hemisphere Travel Initiative (WHTI), a U.S. government program that establishes new travel document requirements for crossing the border to enter or re-enter the United States from Canada, Mexico, Bermuda and the Caribbean by land and sea, began this week to facilitate legitimate foreign entry and strengthen border security.
Since much of our travel comes from Canada and Mexico, it’s important to communicate these policies so they don’t become a hindrance to travel. The Travel Promotion Act, which is bipartisan legislation, would create a public-private partnership with a budget of up to $200 million annually to attract international travelers like these to the United States. According to Oxford Economics, the Travel Promotion Act could potentially generate $4 billion annually in new spending by international travelers to the United States.
At a time where we are losing 10 percent of international travelers to the U.S. each year, with no improvement in immediate sight, we can no longer take the travel industry for granted. The best part is that this legislation, if approved, would not cost U.S. taxpayers a dime. The Travel Promotion Act specifies that travel promotion would be paid for by private sector contributions and a $10 fee on foreign travelers from countries that do not pay $131 for a visa to enter the United States.
We urge government and travel industry officials to keep their eyes on the future of tourism in the U.S. and, of course, California, and do what they can to support this vital legislation. Tourism provides a great economic driver as well as an opportunity to foster enhanced cultural understanding and government relationships. It’s time we treat tourism like the powerful and essential industry that it is, as do most countries around the world in the 21st century.