Secretary's Speech

U.S. Commerce Secretary Carlos M. Gutierrez Remarks to World Travel and Tourism Council

Thank you. Good morning everyone.

Let me begin by congratulating the travel and tourism industry on your contributions to growing economies and a friendlier, more hospitable world.

That is a goal we all share. And it's one of the reasons that Iraq is on everybody's mind. Let me digress for just a moment. Like my Cabinet colleagues, I am frequently asked about Iraq.

Our efforts to defeat the terrorists and bring democracy to the people of Iraq will help transform the Middle East by bringing hope and opportunity to millions.

• Last year the Iraqi economy grew at an estimated 2.6 percent in real terms.
• It's expected to grow by more than 10 percent in 2006.
• Investors are optimistic.
• Foreign and domestic banks are opening new offices.
• The stock market established two years ago lists nearly 90 companies.
• More than 32,000 businesses are now registered.

We're looking forward to the day when stability and prosperity in Iraq opens the door to a flourishing travel and tourism industry.

Travel is the key to the Open Mind, Open World, which is the theme of this Summit.

Just as trade links countries together through open markets, travel and tourism links people together by sharing their sights, history, culture, and language.

Because of jobs I have had during my career, I've worked on four continents. I've had the good fortune to witness the beauty and history of many of the world's diverse cultures and to make many new friends.

As Secretary of Commerce, I well recognize the important role that travel and tourism plays in building bridges between peoples, as well as the critical impact the industry has on economies that are open to visitors and service sectors.

According to the Council's recent projections, in 2006:

• the world' s travel and tourism industry is expected to generate more than $6 trillion U.S. dollars in economic activity
• contribute 10.3 percent of total world GDP; and
• support over 230 million jobs, or 8.7 percent of total world employment.

World-wide, travel and tourism is:

• One of the world's largest and fastest growing industries
• A major economic development strategy in more and more countries
• And a force driving growth, capital investment and employment.

Here in the United States, the travel and tourism industry has just enjoyed a record year. Sales in 2005 broke the $1 trillion dollar mark for the first time ever.

In fact, the industry outpaced our strong GDP growth, 3.5 percent compared to the industry's 4.8 percent growth rate.

Travel and tourism supports more than 8 million American jobs. It's one of the top three employers in 29 states.

And a travel and tourism job is often the first rung on the employment ladder for young people.

We've just to look at the impact that Hurricanes Katrina and Rita had on New Orleans to understand the importance of travel and tourism to many of our cities and communities.

The Travel Industry Association of America calculated that the hurricanes cost the Gulf Coast region 260,000 jobs and well over $27 million dollars a day in revenues.

Today, however, many New Orleans hotels and restaurants are again open. And federal, state and local governments are working together to promote new business and investment opportunities in the region.

In fact, next month, I'll be traveling to the Gulf Coast area with a group of executives to explore commercial possibilities.

And I'm working with the Commerce Department's Travel and Tourism Advisory Board to develop a strategy for bringing visitors back to the coastal communities and strengthening the overall U.S. travel industry sector.

Last year, we welcomed nearly 50 million international visitors to our country. In addition to new ideas and new ways of looking at things, they added $104 billion dollars to our economy.

International visitors are a perennial positive factor in our balance of trade. 2005 marked the 17th consecutive year the U.S. travel and tourism industry has generated a balance of trade surplus.

At $8 billion dollars, this was a 104 percent increase over 2004, and the second consecutive year the surplus has more than doubled.

I'm pleased to say we're looking toward another banner year.

In January, we marked the single largest month of travel exports in the history of the United States. The total was $9 billion dollars.

Over a century ago, an American author, Mark Twain, wrote that travel is fatal to prejudice, bigotry and narrow mindedness.

You are not only doing business, you are contributing to understanding among people of the world.

In introducing people from different countries and cultures, travel and tourism plants the seeds of world harmony and world peace.

As you know, we are involved in a major discussion on immigration. And on one hand we know we have to enforce our borders. We need to know who's here. And we have to enforce our laws. That's a given.

On the other hand, there's an economic reality. There are jobs we need to fill and there are jobs Americans don't want. That's reality.

Immigration is one of our values. We are a country of immigrants. That's why this is such an important debate.

The President has a comprehensive plan:

• The first part is to secure our borders.
• The second part is to strengthen enforcement of our existing immigration laws.
• The third part is to create a temporary worker program that would not provide amnesty.

Immigrants bring to America the values of faith in God, love of family, hard work and self reliance--the values that made us a great nation to begin with.

Their search for a better life is one of the most basic desires of human beings.

We need all of you involved in this debate. Regardless of what your position is.

We all agree that there should be no night border crossings. There should be no market for hiring of smugglers. We all want people out of the shadows.

I applaud the work you do, and the contributions of your industry to the friendlier world we all want for the children of the world to grow up in.

Thank you for having me today.