Travel industry insiders still lacking clarity on the proposed Act
The U.S. House of Representatives on Nov. 9 passed the Travel Promotion Act, a bill that would create a national nonprofit tourism promotion corporation for the United States “to communicate United States entry policies and otherwise promote leisure, business, and scholarly travel“ to international travelers. These travelers, which spend an average of $4,500 per person when visiting the U.S., have experienced a steep decline since 9/11. Government officials are keen to get their dollars back into the U.S. to boost the ailing economy.
The Travel Promotion Act, which would set up an Office of Travel Promotion within the U.S. Department of Commerce, is now waiting for Senate passage before landing on the desk of the president. Executive approval is expected should the bill pass a final vote in the Senate before the current congressional session adjourns.
The $10 fee has raised ire of visa waiver program participants, especially European members, which have enjoyed free entry to the U.S. and have reciprocated an open entry policy to U.S. visitors. Supporters of the Travel Promotion Act point to successful national tourism organizations in Australia, the United Kingdom and Canada, which recently completed tourism campaigns that returned $64, $47 and $11, respectively, for each dollar spent.
Asked how they thought the funds might be applied, more than 53 percent of those surveyed did not venture a guess. Approximately 20 percent accurately indicated that the funds would be used to create a national travel promotion organization, while 36.5 percent accurately believed the funds would be used to communicate and streamline the U.S. security and immigration process.
Additional Resources:
U.S. Travel Promotion Act Includes $10 Fee
House OKs Travel Promotion Act, Now In Senate (2008)
Travel Promotion Act, Hope or Hype?
Download the full report for complete results:
AirPlus…The Wire November 2009 (PDF, 257 KB)
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March 1st, 2010 at 15:16 PM
Position: Managing Director
I suspect the US travel industry will be surprised when it will find out that the 10-$-fee will be seen very negatively by travellers.
March 2nd, 2010 at 22:32 PM
Position: Managing Director
Many people will be ’surprised’ by this new legistation. It was tagged on to a bill regarding police enforcement rather than subject to Congressional debate.
Obama will say it creates new jobs. I predict it will create 11 in the new government tourism group and then cause 1k job losses when tourism is reduced becasue visitors don’t see the new fee as a welcome mat.
March 4th, 2010 at 13:18 PM
Position: ED Strategic Projects & Marketing Planning
This is nothing to do with Visas to my mind and so any attachment to the visa waiver or visa required visitors is a red herring.
This is an entry tax pure and simple. The challenge with that, as with all trade related tariffs, is that they ultimately don’t work. Usually they are imposed by others in retaliation and ultimately the benefit is canceled out.
However, what is more concerning is the fact that measure is so counter intuitive to the goal. I want people to do more (i.e. visit the US) and so I will charge them more to do it (i.e. tax them).
Unless the US is planning on marketing themselves as a destination in the same way you would sell a Swiss watch or an Italian luxury handbag, I don’t understand the strategy beyond simple taxation of non voting taxpayers