“In light of the current discussions surrounding a potential economic stimulus package, I think it is especially timely and important to discuss tourism.  As mayors, you know firsthand that investing resources and effort in order to boost tourism results in dividends of economic growth for the local community.  What appears to be lost on some at the federal level is the understanding that supporting and expanding travel and tourism to the United States not only benefits local economies, but also state economies and the national economy. 

“Trying to get the federal government to partner with the states and the tourism industry is an effort that I, along with several other Members of Congress, will continue to work on.  However, because there is currently no coordinated Federal-State-Local partnership, even states that are strong in tourism, like my home state of Hawaii, are experiencing challenges like never before.

“If you will indulge me in a bit of history, it was the year 1959 that brought the first jet aircraft service to the Hawaiian Islands.  Pan Am’s flights revolutionized the travel industry in Hawaii. 250,000 tourists visited our islands that year.  They were drawn to Hawaii then for many of the same reasons people are drawn today.  Step off the plane and your senses are awakened to the sweet fragrance of plumeria, warm air, and cool ocean breezes.  Friendly faces welcome you with the spirit of aloha, and by the time you have your bags, you know you have picked the right destination.  Hawaii now welcomes nearly 7.5 million visitors each year, with tourism being our number one industry.  In 2006, our travel industry brought in $12 billion dollars, or one quarter of our State’s revenue.

“Despite this success, the tourism industry today is still fragile.  Following the 1997 Asian Market crisis, Hawaii suffered a devastating decline in visitors from Asia.  Before we were able to fully recover, the terrorists attacked America on September 11.  After 9/11, an equally abrupt decline in visitors put our economy into a tailspin from which we have only recently begun to recover.  Hawaii’s tourism industry has shown great resilience, but it faces continuing challenges. 

“A competitive world tourist market makes it increasingly difficult to attract tourists.  Some of our longtime and most steadfast visitors are no longer choosing Hawaii.  In 2006, for instance, 10 percent fewer visitors came from Japan.  A variety of factors have contributed to many Japanese travelers choosing to visit other destinations such as Okinawa or Southeast Asian countries.  But these Japanese visitors to Hawaii are our most coveted travelers, since they tend to spend the most money per person, per day.  In 2006, the average Japanese visitor spent $266 dollars per day, whereas the average U.S. visitor spent between $156 and $181 dollars per day. 

“While the Hawaii Tourism Authority has done a fantastic job in keeping us competitive, it is clear that the world travel marketplace has changed.  States across our nation are suffering from similar travel woes.  In testimony before the Senate Commerce Committee last year, I heard from state tourism directors, the travel industry, and federal agencies.  From these hearings a similar message emerged.  States and cities are working hard to attract foreign visitors.  Sometimes the message is coordinated, but often it is not. 

“The testimony also made clear that other nations are just plain smarter in attracting tourists than we are.  Often, competing nations have cabinet-level tourism ministers who have strong powers in coordinating and growing tourism.  The United States does not.  Our competitors in Europe and in Asia aggressively market to potential travelers using a coordinated message.  The United States does not.  And, as we have seen, fewer visitors are choosing to come to the United States.  In 1992, the United States attracted 9.4 percent of all international tourist arrivals.

“In 2004, we attracted only 6 percent of total international arrivals.  That 35 percent drop has cost the United States about $300 billion in revenue over the last 15 years. These are the kinds of numbers that make it clear to me that individual states cannot effectively compete with entire countries.

“Certain controllable factors can benefit the tourism industry and help keep it competitive.  Cities and states across the country have provided us with a blueprint for attracting more visitors. After learning about these models and travel promotion efforts, Senator Byron Dorgan, Senator Ted Stevens, and I crafted the Travel Promotion Act of 2007.  The Senate Commerce Committee, which I chair, reported that legislation to the full Senate, where it awaits floor consideration. 

“This bill would create a non-profit corporation to promote America to international visitors. It would disseminate information about U.S. travel policies, so as to resolve any misperceptions about the difficulties associated with coming to our country.  The Corporation’s mandate includes exposing potential visitors to the well-traveled parts of America as well as to our nation’s less known attractions and offerings.  Cities and states without the funds to market themselves overseas would greatly benefit from the Corporation’s coordinated marketing campaign. 

“The Corporation would be funded through a user fee imposed on travelers from visa waiver countries.  The fee is similar to entry and exit fees imposed by a number of countries, including the United Kingdom and Australia.  And at 10 dollars, it represents a tiny fraction of international travelers’ budgets. 

“However, the benefits to America from such a fee are enormous.  According to one study, funding a promotions program through a fee on travelers would increase overseas travel to the United States by nearly 1.6 million visitors each year and result in $2.5 billion more spent in our country annually.  This increase in spending by international travelers, in conjunction with entry reforms, would help thousands of small businesses across the country. 

“These enterprises depend on tourism but lack the resources and coordination necessary to reach out to overseas travelers.  The Corporation would be able to speak for and organize this portion of the travel industry that currently lacks resources to promote themselves individually. 

“The bill also establishes the Office of Travel Promotion in the Commerce Department.  For too long, our government has relegated travel and tourism to second tier status.  This bill would elevate 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 both travel promotion efforts and the entry process for international travelers. 

“Encouraging international travelers to visit our country is both economically and diplomatically beneficial.  Studies have shown that three quarters of visitors have a more favorable opinion of our country after spending time in the United States and interacting with Americans. 

“This does not surprise me because I know that American hospitality is the best in the world.  I thank you for the support you all have given this legislation and these efforts.  I hope we can find floor time to pass S. 1661, the Travel Promotion Act, this year.  Working together, I know we can make America the preeminent tourism destination in the world.”