President Obama Signs U.S. Travel Promotion Act

President Barack Obama on March 4 signed into law the first-ever national travel promotion and communications program to attract more international travelers to the U.S. The U.S. Travel Association (USTA) said the program is a major step in addressing America’s decline in attracting overseas visitors to the U.S. during the past decade.

The Travel Promotion Act is in response to evidence that the U.S. is losing ground to other countries in the global travel market, according to USTA. The U.S. welcomed 2.4 million fewer overseas visitors in 2009 than in 2000, and the failure to simply keep pace with the growth in international long-haul travel since 2000 has cost the U.S. economy an estimated $509 billion in total spending and $32 billion in direct tax receipts, the USTA said.

The Travel Promotion Act will counteract this trend by creating a campaign to promote the United States as a premier destination and explain changing travel security policies to foreign visitors.

“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 Roger Dow, USTA’s president & CEO. “This program will create tens of thousands of American jobs and help reverse negative perceptions about travel to the United States.”

Oxford Economics estimates that a successful national promotion will yield $4 billion in new spending annually, create 40,000 new jobs and generate $321 million in new tax revenue each year. The Congressional Budget Office reported that the Travel Promotion Act would reduce the federal deficit by $425 million over 10 years.

The public-private Corporation for Travel Promotion established by the Travel Promotion Act combines the accountability of the government with the expertise of the private sector. The U.S. Department of Commerce will oversee the corporation and work with the Departments of State and Homeland Security to nominate an 11-member board comprised of representatives from various segments of the travel community.

Once the board is in place, it will select an executive director to run the operations of the corporation. The corporation will develop a multi-channel marketing and communications program to attract more international visitors and explain changing travel security policies.

The initiative will be funded through a matching program featuring up to $100 million in private sector contributions and a $10 fee on foreign travelers who do not pay $131 for a visa to enter the United States. The fee will be collected once every two years in conjunction with the Department of Homeland Security’s Electronic System for Travel Authorization. No money is provided by U.S. taxpayers.