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WASHINGTON, D.C. – Commerce Committee Chairman Daniel K. Inouye (D-Hawaii) joined Committee Vice Chairman Senator Ted Stevens (R-Alaska) to cosponsor the Travel Promotion Act of 2007, introduced by Interstate Commerce, Trade, and Tourism Subcommittee Chairman Byron Dorgan (D-N.D.). The measure would create an independent body to manage and coordinate a nationwide travel promotions campaign, establish an Under Secretary of Commerce for Travel Promotion, and seek to encourage international travelers to visit the United States.
“Although the travel and tourism industry is a driving force for our nation’s economy, our government has relegated travel and tourism to a second tier status,” Senator Inouye said. “In order to strengthen our competitiveness and recover lost international market share, we must improve and better explain the process for travelers coming to America. The world needs to know that the United States welcomes business and leisure travelers. The Travel Promotion Act of 2007 will enhance our competitiveness and improve our image abroad.”
“The travel and tourism industry impacts every portion of Alaska’s economy by providing jobs to our residents and increasing sales for our businesses,” Senator Stevens said. “By encouraging international tourists to visit Alaska and the rest of the United States, the Travel Promotion Act will help a vital sector of our economy continue to grow.”
“After 9/11, the number of overseas travelers to the U.S. decreased dramatically and has still not fully recovered,” Senator Dorgan said. “The U.S. offers unique and diverse destinations for travelers, yet we have lacked a coordinated program to promote travel to our country. This bill will help increase the number of international travelers to the U.S. and improve their perceptions of the U.S.”
The Travel Promotion Act of 2007 would:
· Establish a non-profit Travel Promotion Corporation with a 14-member board consisting of representatives of states, the federal government, and the travel industry. The Corporation would be authorized to:
- Promote international travel to the United States through advertising, outreach to trade shows, and other promotions;
- Maximize the economic and diplomatic benefits of travel to the United States;
- Correct misperceptions regarding U.S. travel policy around the world;
- Prioritize the Corporation’s efforts based on countries and populations most likely to travel to the United States; and
- Ensure that international travel benefits all states.
· Require the Corporation to establish annual objectives, approved by the Secretary of Commerce and to provide an annual budget report to the Secretary and an annual report to the Congress on its activities.
· Allow the Corporation to borrow $10 million from the Treasury in 2008 to cover its initial expenses but require the Corporation to pay the funds back by 2012. Starting in 2009, the Corporation would be required to raise non-federal funds and in-kind contributions. Based on the amount raised by the Corporation, up to $100 million in federal matching funds would be made available annually from the Travel Promotion Fund established in the Treasury. At least 20% of the matching contributions would be in cash. If the travel industry agrees, based on a referendum, the Corporation would have the authority to levy an assessment on industry members, except airlines, educational institutions, and small businesses, to assist in raising matching funds.
· Authorize the U.S. government to charge a $10 user fee, plus an amount necessary to cover the operational costs of any system the U.S. government implements to collect biographical information on travelers under the visa waiver program. The non-overhead portion of the fee shall be transmitted to the Treasury for use in the Travel Promotion Fund.
- Serve as a liaison to the Corporation;
- Work with the Secretary of State and Secretary of Homeland Security to improve the entry process for travelers;
- Support state, regional, and private sector initiatives to promote travel;
- Supervise the Office of Travel and Tourism Industries (OTTI);
- Work to improve the entry and departure experience for international visitors; and
- Report to Congress annually on the status and progress of all efforts to improve the entry process.
· Direct the OTTI to continue and expand certain travel research programs.
Senator Inouye’s full statement for the record is below:
International tourism brings more than economic returns. International travelers who visit our country can advance our standing overseas. Studies have shown that, after visiting the United States and interacting with Americans, 74 percent of visitors have a more favorable opinion of our country.
In recent years, overseas travel to the United States has suffered. In the wake of the September 11, 2001, terrorist attack, the United States made a number of necessary changes in the visa and entry processes to improve security, but some of those changes have confused and deterred visitors from even the friendliest countries. Many in the travel industry have continued to express concerns about the perception that the U.S. entry process is unnecessarily antagonistic.
In order to strengthen our competitiveness and recover lost international market share, we must improve and better explain the process for travelers coming to America. The world needs to know that the United States welcomes business and leisure travelers.
In addressing these concerns, and in recognizing the benefits of travel promotion, I am pleased to join my colleagues, Senator Dorgan and Vice Chairman Stevens, in introducing the Travel Promotion Act of 2007. The bill establishes a nonprofit, independent corporation charged with reaching out to potential international travelers, clarifying the ease of travel to America, and encouraging them to visit. As experts have testified in hearings before the Commerce Committee, a unified effort to promote tourism to all areas of the United States is necessary and cannot be achieved by the industry alone.
The proposed Corporation will be run by fourteen board members, appointed by the Secretary of Commerce, who represent all aspects of the travel industry, including state tourism boards, hotels, and airlines, as well as the federal government. A small fee collected from international travelers to the United States will help fund the Corporation, but its costs will be truly shared with industry. In order to receive the funds collected by the government, the Corporation will need to raise matching funds from the travel industry. By working together, the federal and state governments and business will be able to revitalize the travel industry and make America a stronger and more welcoming destination.
In most developed countries, the minister of tourism is one of the most powerful and important positions in the government. For too long, our government has relegated travel and tourism to a second tier status. The bill seeks to improve that status by creating an Under Secretary of Commerce for Travel Promotion who would work with the State Department and the Department of Homeland Security, as well as the Corporation, to improve travel promotion efforts and the entry process for international travelers.
The travel and tourism industry helps drive the U.S. economy. The Travel Promotion Act of 2007 will enhance our competitiveness while improving our image abroad, and I urge my colleagues to support this measure.”
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