Mar 04
Ashley SpitzerNews economy, Keep America Meeting, meeting industry, travel promotion act
Guest Blog Post – courtesy of Rob Hard
President Obama signed the U.S. Travel Promotion Act into law (March 4, 2010), creating a nonprofit organization (public-private partnership) that will be overseen by the U.S. Commerce Department to promote the U.S. as a business travel and tourism destination – and help explain security and entry policies into the country. Politicians and many in the U.S. hospitality industry proclaim this as a victory.
The national tourism office will be funded with up to US$200 million to create a marketing campaign to international visitors. Sounds great, right? Not so fast. At least half of this money will come from a new tax scheme.
A US$10 fee will be charged to international visitors from 35 countries that participate in the Visa Waiver Program (VWP) to cover up to US$100 million of the budget. The fee would be assessed once every two years, allowing unlimited visits into the U.S. during that time. The legislation also allows the U.S. Department of Homeland Security to charge a separate administrative fee which some say will amount to US$2-3 per transaction to manage the program – costing another US$20-30 million each year. Individuals are likely to incur personal credit card fees as well.
The other US$100 million will be covered by a combination of in-kind and cash investments contributed by third parties in the U.S. tourism industry – most of these organizations already have a financial interest in promoting themselves to international travelers.
While the fees may sound nominal, it’s something that has many people from the impacted countries upset, says Steve Lott, spokesperson for the International Air Transport Association (IATA), Washington, DC.
“Other countries charge their entry/exit fees every time you enter,” a US Travel Association spokesperson explains. “The US$10 fee is far lower than similar fees – ranging from Ireland’s US$14 entry tax to the UK’s whopping US$100 – paid by Americans when they travel abroad. And with a mere 35 countries that would be required to pay the fee, fewer than 30% of foreign travelers will be affected.”
The USTA’s reference to the UK may be appropriate; however, the UK’s Air Passenger Duty (tax) is viewed quite controversially, and some in the UK are concerned that it will negatively impact tourism as the fee continues to increase. The UK introduced a small fee to generate needed revenue in 1993, and the tax has grown significantly since then. And just because someone else charges a fee isn’t enough of a reason for others to follow.
The IATA has taken a position against the U.S. fee, saying that an entry or exit fee charged by other countries is a matter of comparing apples to oranges: none of the 35 countries have a tourism-specific fee.
IATA isn’t the only business travel organization against the fee. The National Business Travel Association (NBTA) doesn’t support it either “because it taxes the traveler to pay for an item that doesn’t tangibly benefit the traveler,” says Shane Downey, director of public policy for the NBTA, Alexandria, Virginia.
Nobody is questioning the importance of creating a U.S. tourism office – or a needed marketing campaign.
But it’s important to know that roughly 47 million international business and leisure travel visits were made to the U.S. in 2009 (excludes Mexico) – a decline of about 6%, and the amount they spent dropped by 15% to about US$122 billion (includes Mexico), according to data from the U.S. Office of Travel & Tourism Industries, Washington, DC. In general, overseas travelers spend about US$4,500 per trip to the U.S., according to the USTA.
Given the amount international visitors already contribute to the U.S. economy, why isn’t the cost of the program being covered from existing taxes?
It seems unfortunate that the fees are tied to visitors from VWP countries – a program initially developed to streamline and encourage international tourism to the U.S. It was chosen because the VWP system already exists and can be easily modified to capture a new fee.
The verdict is also out as to whether the U.S. has risked alienating individuals and governments from some of these countries who may opt to visit elsewhere and/or establish retaliatory fees upon U.S. international visitors to their countries. If that happens, this legislation should ultimately be viewed as a new tax on U.S. international travelers.
As for the argument that this is needed because the U.S. isn’t promoting itself internationally, this is simply misleading. Many U.S. cities and states advertise and participate at international travel shows around the world.
It has already been reported that the U.S. plans to promote its tourism to emerging markets, including Brazil, China and India. I, of course, want travelers from these and other countries to know that they are welcome in the U.S. But I’m not sure how business travelers and tourists from Australia, Japan, Spain and other countries may feel as they pay an extra fee to cover the cost of that campaign.
So is it only a matter of time before other countries will be asked to pay a U.S. entry fee for tourism?
Based in Chicago, Rob Hard is a freelance business travel writer and publisher of http://BusinessTravelDestinations.com, business travel views to international destinations, and event planning guide for About.com. He is also founder of RH Communications, Inc., a boutique marketing firm that provides creative and printing solutions. Email him at editor@rhcommunications.com or write to him at PO Box 4405, Chicago, IL USA 60605.
Feb 24
Ashley SpitzerNews economy, Keep America Meeting, meeting industry, travel promotion act
The long awaited Travel Promotion Act may face a final Senate vote this week.
Why It Matters: it will attract more visitors to our nation, create new jobs, and increase revenue for lodging businesses and local governments, all at no cost to American taxpayers. This is a bill that can help this nation’s economy during a time when job creation is a top action item for Congress.
How YOU Can Help: reach out to your Senators this week and tell them how import the Travel Promotion Act is to the meetings industry industry-and your state.
Thank them for their earlier support of the bill (the Senate passed an earlier version 79-19 in September) and urge them to again help one of the nation’s largest industry sectors during this tough economic period.
How to Contact Your Senators:
• Call the U.S. Capitol operator at 202-224-3121 and ask for your Senator’s offices, or view this list of Senators and their states.
• Explain you are resident of the Senator’s home state.
• State you are calling to register your strong support for the Travel Promotion Act (S. 1023/H.R. 1299) and urge your Senators to vote “YES” for the bill to support their state’s lodging and travel industries.
If the Senate vote is successful, the bill will then head to President Obama’s desk for his signature into law.
Support the meetings industry and call your Senators!
Jan 13
maureen-pickellTrade Shows economy, environmental-friendly, green meetings, Keep America Meeting, overseas meetings, pcma
Your intrepid blogger had another busy day. The sessions at the PCMA annual conference continue to be varied and interesting, beginning with “Beyond Borders: Advanced Solutions for International Meetings.” Roundtable discussion topics ranged from Risk Management and Attendance Building to Budgets and Cost Containment as well as Working with Partners. The goal was to help eliminate the trial and error of international planning by sharing information among participants. Specific issues were introduced and solutions discussed using the expertise of both planners and suppliers.
For those of you interested in the results, the notes will be posted on the PCMA website after the conference.
Then on to “Top Industry Leaders on the Future of Meetings.” The meetings industry version of “The Magnificent Seven” including Jonathan Tisch, Roger Dow, John Graham, Bruce MacMillan, Michael Gehrisch, Brenda Anderson and Deborah Sexton addressed the outlook for 2010 and beyond. A lively discussion about the power of collaboration revealed that the prognosis is basically optimistic but more work needs to be done to rebuild and renew our industry.
The standing room only audience seemed more than anxious to take on the challenge by furthering the grass roots movements begun this past year.
And lastly, how many of you know the difference between Free range poultry and Cage free birds? The session entitled “Green Guide: Sustainable Food and Beverage” presented tips on selecting sustainable food choices and staying within budget while implementing a program to manage food and beverage waste. Again, consult the PCMA website for a glossary of terms relating to this important topic.
Looking forward to Wednesday’s sessions and networking!
Sep 15
Ashley SpitzerNews, Trade Shows Event Industry Networking, hsmai affordable meeting, Keep America Meeting, meeting education, meeting industry
Last Wednesday and Thursday, we attended HSMAI’s Affordable Meetings National Show in Washington, DC.
The show was attended by over 2,000 meeting planners on the first day!
The education sessions throughout both days of the show were of the highest quality. Our personal favorites include Jonathan Tisch and Scott Klososky’s keynote speeches (more on Klososky in our next post).
Jonathan Tisch inspired us to fight for the meetings industry! He shared a video of how far the Keep America Meeting campaign has come and encouraged audience members to contact their Senators in support of the Travel Promotion Act. Ironically, the bill was passed the very next day.
Tisch shared that Loews hotels have adopted the mantra “value is the new luxury.” We think the saying is reflective of the trends across the entire industry – Affordable Meetings National was the perfect place to gather and discuss them!
Aug 18
Ashley SpitzerMember News, Tips for Meeting Planners, Trade Shows ASAE & the Center, attendee interaction, Event Industry Networking, Keep America Meeting, meeting education, social media, Trade Shows
What are planners looking for from the ASAE Expo?
A survey taken on the floor the first two days found planners looking for new ideas and new partnerships. To quote one association planner,
“In order to be successful, we look at our exhibitors not just as exhibitors, but as business partners.”
Face to face interaction with business partners at the expo is an important way to foster connections.
After ASAE has concluded, planners can solidify these new relationships by using ConventionPlanit.com as a web portal to our varied portfolio of suppliers.
Technology, especially social networking, are important components to the meetings industry, but can be made much more successful through new face to face connections!
Jul 16
Ashley SpitzerNews economy, hotels, Keep America Meeting, meeting industry
USA Today posted an interesting article about the ethics of Congressional travel.
Here’s the linK:
Ethics rules alter travel by Congress – USATODAY.com.
The amount of travel over the past few years for lawmakers has dropped significantly, according to the article. From the ethical standpoint, I do not want lawmakers traveling on the dime of a non-profit in order to sway legislation.
However, I can’t help but think about the matter from the hospitality industry’s standpoint. Any travel cutbacks I read or hear about cause me to cringe…because, as we know and have experienced, businesses have been canceling trips and meetings to avoid seeming lavish and excessive in the eyes of Congress.
My hope is that the travel industry, which has already experienced significant lows this year, will not be bundled with Congress’ unethical behavior.
Let the industry have a fair chance for the good to be seen – awareness is the best way. Let’s help spread the word of campaigns like Keep America Meeting to help generate positive press about the travel industry.
What are your thoughts? Does it bother you to see travel associated with negativity? What are some other ways to spread the importance of the industry?
Jun 09
Ashley SpitzerNews airlines, economy, issue of the week, Keep America Meeting, meeting industry
Did anyone catch Ben Stein’s commentary on CBS Sunday Morning last Sunday, June 7th, on Meetings Mean Business?
Stein discussed the effect that organizations canceling meetings (namely, those who have not received bail out money from the government) has had on the economy.
This current trend is eroding the business at hotels, tradeshows, restaurants and will eventually effect the airline industry.
With unemployment numbers rising, Stein pointed out that meetings and conventions are exactly what we need to share ideas to stimulate new business.
We are grateful for Stein’s support of the travel and hospitality industry. Let’s keep America meeting!
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