President Obama Signs Travel Promotion Act
Washington - A bill signed into law by President Obama March 4 is aimed at encouraging more international visitors to come to the United States.
The Travel Promotion Act of 2009 (TPA) creates a new public-private partnership between the U.S. government and the nation's travel and tourism industry. The new law calls for creation of the Corporation for Travel Promotion, which will oversee the development and implementation of a global marketing and promotion campaign aimed at increasing the number of international visitors to the United States. The corporation will be funded through fees collected from international travelers from Visa Waiver Program ( http://travel.state.gov/visa/temp/without/without_1990.html ) countries and matching contributions from the private sector, according to the U.S. Department of Commerce.
Unlike many other nations, the United States never has had a national travel promotion board, although a number of individual states, such as California and Florida, have established such entities to encourage visits by international travelers.
The new federal law aims to reverse the United States' downward-trending share of the global travel market. In 2009, the United States welcomed 2.4 million fewer overseas visitors than in 2000, a decline that has cost the U.S. economy an estimated $509 billion in total spending and $32 billion in direct tax receipts, according to the U.S. Travel Association (USTA), a trade group that lobbied for passage of the legislation.
The Commerce Department said it "stands ready to work with the private sector to promote international travel to the United States" and added that the travel and tourism sector is the United States' top services export, valued at $142 billion and supporting more than 1 million American jobs.
"When international visitors come to the United States they spend money on a wide range of goods and services that support U.S. jobs," said Secretary of Commerce Gary Locke. "Creating a global tourism promotion program to encourage international visitors to vacation in America will help spur economic growth and create more jobs."
Overseas visitors spend an average of $4,500 per person, per trip in the United States. Oxford Economics, a consulting company, estimates the travel promotion program under the Travel Promotion Act will generate $4 billion in new visitor spending and 40,000 new jobs annually. According to the Congressional Budget Office, the program will reduce the federal budget deficit by $425 million over the next 10 years.
The law directs Secretary Locke to appoint an 11-person board of directors that will be charged with establishing the nonprofit corporation. Board members will be chosen from the private sector and are expected to represent all segments of the travel industry, according to USTA.
The U.S. travel industry is enthusiastic about the new law.
"By signing the Travel Promotion Act, President Obama has acted to support the power of travel to serve as an economic stimulant, job generator and diplomatic tool," said USTA President Roger Dow.
"Today, America extends a heartfelt 'Welcome' to the rest of the world," said James Rasulo, senior executive vice president and chief financial officer of The Walt Disney Company and past national chairman of the U.S. Travel Association. "It is a great example of the innovative solutions government and industry can create when they work together toward a common goal."
