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!
Feb 22
Ashley SpitzerTrade Shows imex, meeting industry, Trade Shows, upcoming meetings industry events
If you’re a meeting planner, your chances of attending IMEX America for free through a hosted buyer program have just increased 30%!
IMEX America announced today that 2,000 qualified planners will be hosted – the largest number for any US trade show.
The show will take place at the Sands Expo in Las Vegas October 11-13, 2011. Hosted buyer qualification will use the same guidelines IMEX Frankfurt uses.
If you are interested in attending the show with the ConventionPlanit.com hosted buyer group, please email stephanie.kreps@conventionplanit.com!
Feb 11
Ashley SpitzerNews economy, meeting attendance, meeting industry
2010 seems hopeful for meetings and events in Las Vegas, based on numbers released earlier this week by the Las Vegas Convention and Visitors Authority.
Meetings in 2009, overall, suffered a 13% decline from the previous year.
December, however, is the fourth month in a row that year-over-year visitor numbers increased. Even meeting figures saw an increase!
Have your meetings picked up in 2010? Hoteliers, are you booking more business? We have seen a dramatic increase in RFPs from planners using the RFP Valet service. Let’s stay busy and meeting in 2010!
Jan 25
Ashley SpitzerTrade Shows ASAE & the Center, imex, meeting industry
Today is the first day in the Washington DC area the temperature has hit 60 degrees since winter kicked in, and we’re already excited for spring!
Be sure to mark your calendars for these spring industry events:
Jan 21
Ashley SpitzerNews Haiti, meeting industry, non-profit
Victims of the earthquake in Haiti are still in desperate need of our assistance. While donating to the Red Cross directly is the the best advised method, it is possible to help in other ways.
There are several ways the meetings community can donate -
Jan 14
maureen-pickellTrade Shows economy, meeting attendance, meeting industry, pcma, upcoming meetings industry events
Well, the PCMA 2010 Annual Meeting wrapped up with another strong day of education beginning with a Plenary Session entitled “The State of the Meetings and Travel Industry.” The theme of “cautious optimism” that has run through the conference was reiterated once again – this time with hard numbers presented by Peter Yesawich of YPartnership.
His panel included Minaz Abij of Asset Management, Thomas C. Dolan, PhD., CAE, American College of Healthcare Executives, Brian Phillips of FedEx Office, Thomas W. Storey, Fairmont Hotels & Resorts and Frits van Paasschen of Starwood Hotels & Resorts Worldwide. The consensus of this distinguished group is that business meetings are coming back slowly. The 2nd quarter will see the emergence of small and mid-sized events with large meetings surfacing in the 4th quarter. Association business will pick up with higher attendance at annual conferences because of the pent up demand for face to face encounters.
According to Thomas Dolan, “You still need to see to sell and convince.”
It appears that 2nd quarter will see a rush to get these meetings launched. To help our planners manage their “time poverty,” ConventionPlanit.com offers the RFP ValetTM service. Instead of spending time researching facilities and chasing properties for timely responses, we do the work for you. To learn more about this service, click here.
Your dedicated blogger was virtually overwhelmed by the wealth of information presented during PCMA 2010 – Convening Leaders. I’ve attempted to share some of the highlights with you over the past 4 days, but in order to comprehend the wide scope of the education that was offered, go to www.pcma2010.org and click on Video to view the PCMA-TV News Summary.
We’ll see you at PCMA 2011 in Las Vegas!
Dec 21
Damion RutherfordTips for Meeting Planners meeting experiences, meeting ideas, meeting industry, meeting planner help
Meeting professionals know that the best ideas often come from their peers, who are usually more than willing to share them with people who show an interest. In 2010, planners are talking about adding value to their meetings to attract attendees.
Maureen Thompson of ASBO International taps the knowledge of the hotel staff by hiring some of them to put in extra hours staffing the meeting registration desk instead of hiring temps to do this. “The person’s knowledge of the venue, location and even access to the ‘behind the scenes’ places of the hotel is invaluable,” she says.
For more great meeting ideas, check out the Stellar Tip Archive, and search through a variety of tips and advice submitted by other meeting professionals.
What are some ideas you will be implementing? Let us know, and share the information with your peers. It’s the most effective way to learn!
Dec 11
Damion RutherfordTips for Meeting Planners, Trade Shows MACE, meeting ideas, meeting industry, MPI, Tips for Meeting Planners
Yesterday I attended the Potomac Chapter of Meeting Professionals International’s (PMPI) Mid-Atlantic Conference & Exposition (MACE!2009). Instead of a traditional trade show, the event organizers introduced a ‘flipped marketplace’.
The flipped marketplace gave each planner and supplier the opportunity to schedule up to 10 one on one 15 minute-long appointments – with the planners seated at booths and the suppliers moving throughout the room.
Like many attendees, I was skeptical of the marketplace before experiencing it, but found it to be an absolutely brilliant concept.
Why PMPI’s Flipped Marketplace worked:
1. Mutual Interest - suppliers requested appointments with planners (suppliers had access to organization names, planner’s role in the decision making process, location of meetings, budget, average peak room night, and next available planning year…but NOT the planner’s name). The planners could approve or decline the appointment request via email, or propose a new meeting time. Giving both planners and suppliers the ability to choose to meet with one another gave value and meaning to the conversations before they actually even occurred.
example: When I arrived for the morning introduction session, I took my cup of coffee and introduced myself to the colleague seated next to me at the table. The planner turned out to be one of my appointments for the marketplace! This realization that we had selected one another for the appointment gave us a connection for the rest of the day when our paths crossed.
2. Length of Meeting Time - With a solid 15 minutes to converse, planners and suppliers were able to build solid connections and relationships with one another. This was a refreshing change from the traditional exhibit hall, in which booths often become crowded, making it difficult to have an in-depth conversation. The halls, in general, are constantly in a flow of motion; it is rare for a planner to spend 15 minutes of their time in the hall at one booth…and who can blame them. The 15 minute appointments allowed both planner and supplier to walk away with knowledge and understanding of one another that will not be forgotten as easily as tossing a business card into a drawing for a give-away while walking past a booth.
3. Supplier Cost - While suppliers did pay to participate in the Flipped Marketplace, the cost compared to that of booth space, decorations, furniture, internet, electric, carpet, popcorn machine, etc. was very reasonable; especially when the quality of interactions with attendees and ROI is factored in.
4. Scheduling - The time period for the marketplace did not coincide with any educational sessions. This allowed for the largest possible number of participants at the marketplace, and eliminated the possibility of distraction.
5. Spotme Devices -Spotme, a networking and data gathering handheld device company, provided every show attendee with a device for the day. These devices are far more valuable than electronic scanners. Spotme electronically transfers business cards by touching the devices to one another – no paper involved. Attendee’s appointment schedules were preloaded onto the devices, as well as a photo. The search component allowed users to search for individuals by company or name, and see the person’s photo. Setting the scan feature for an individual causes the device to vibrate when the individual enters the room. This is extremely helpful in a large conference area. Electronic surveys for sessions appeared on the devices at the end of each session. Maps of the Flipped Marketplace as well as the corridor of the conference center were also loaded onto the devices. The devices, overall, contributed to the ease and flow of the day.
For its first year, I believe the Flipped Marketplace at MACE was a huge success among both planners and suppliers. There are a few kinks that will most likely be ironed out for 2010, and the show organizers were very eager to hear feedback.
Kudos to PMPI for successfully implementing the Flipped Marketplace. The meetings industry should be experimenting and constantly pushing forth new ideas; I believe this concept has done just that!
Nov 17
Damion RutherfordNews, Trade Shows AH&LA, Event Industry Networking, meeting industry, Young Meeting Professionals
The ability to meet face to face, learn, network and connect with colleagues is near and dear to the event and meetings industry.
The American Hotel & Lodging Association’s Fall Conference, held last week at the Jacob K Javits Center in New York City, gave us the perfect chance for this!
With a tradeshow, educational events, and networking sessions scheduled over the course of several days, there was something for everyone…including young professionals.
The Under 30 Gateway, launched in July of 2008, is AH&LA’s fastest growing membership category – with over 600 members in just a little over a year! We took part in some fantastic events, specifically for Gateway members last week.
The conference was a great way to learn valuable advice from industry leaders and connect with peers from all areas of the country. Check out the Gateway’s Facebook page for photos and more information.
If your employer is a member of AH&LA, Gateway membership is free for you; or you can join for a special reduced fee.
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