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CAPITOL CONNECT PLUS
CURRENT ISSUES FACING TRAVEL BUSINESS ROUNDTABLE
WESTERN HEMISPHERE TRAVEL INITIATIVE
BACKGROUND
The Western Hemisphere Travel Initiative (WHTI) was created by the Department of State (State) and the Department of Homeland Security (DHS) in response to Section 7209 of the Intelligence Reform and Terrorism Prevention Act – approved by Congress and signed by the President in late 2004. Following up on a recommendation of the 9/11 Commission, Congress acted to remove what was known as the Western Hemisphere Exception – a rule that permitted returning U.S. travelers and some foreign nationals to present driver’s licenses and/or birth certificates upon entering the United States. The Western Hemisphere Travel Initiative would require all travelers – including U.S. citizens – to have a passport or other accepted document that establishes identity and citizenship upon entry or re-entry into the United States from Central and South America, the Caribbean, Bermuda, Canada and Mexico. The current proposal, as amended by Congress, would roll out WHTI in two phases:
January 23, 2007 – Requirement applied to all air travel to or from Central and South America, the Caribbean, Bermuda, Canada and Mexico.
No later than June 1, 2009 – Requirement extended to all sea travel and land border crossings.
VISA/MACHINE READABLE PASSPORT ISSUES
The U.S. Department of State will soon be implementing new policies regarding the entry of visitors from the 27 Visa Waiver Program (VWP) countries that could result in serious disruptions in legitimate travel -- both business and leisure -- to the United States. Specifically, the USA Patriot Act moved the deadline for VWP countries to begin issuing machine readable passports (MRPs) from October 1, 2007 to October 1, 2003. This deadline would require all passports issued as of October 1, 2003 to be machine readable, and all visitors entering the United States would be required to have a MRP. The Department has stated that VWP travelers who are not able to supply an MRP when traveling after October 1, 2003 will need to apply for visas at U.S. consulates in their home countries. However, given the Department’s new requirement that all visa-seekers be subject to an in-person interview, these travelers are likely to face lengthy delays in their efforts to come to our country. With that in mind, TBR respectfully requests that the Department exercise the waiver authority it has been given to ensure that sufficient time is available to notify and educate VWP travelers about this significant change.
DESTINATION MARKETING
Corporations spend billions of dollars each year advertising their products for a simple reason: it works. Yet the United States has, historically, done extremely little to promote itself as a travel destination of choice. This has had a clear-cut, bottom-line impact, not only on the US travel and tourism industry, but also on the health of the US economy. The United States is now the third most visited destination in the world behind France and Spain, and the travel trade surplus declined from $26 billion in 1996 to $8.6 billion in 2001.
HOMELAND SECURITY
The travel and tourism industry's unique nationwide infrastructure makes it a key component in the quest to promote national security and a priority partner of the new Department of Homeland Security. The goal of creating a central point of coordination to protect American citizens within our borders is a worthy one, and the industry supports this important mission. At the same time, counter terrorism measures must be conducted in a manner that does not unduly interfere with the flow of commerce. While the country and the industry must do everything to protect domestic borders and US citizens from potential terrorist threats, we do not have the luxury of being viewed, internationally, as a destination that no longer welcomes in-bound visitors.
PRESIDENTIAL ADVISORY COUNCIL ON TRAVEL AND TOURISM
Tourism is an unsung hero of the U.S. economy. Over the course of the past eight years, it has generated more than 56.7 million jobs, $3.7 trillion in expenditures, $622 billion in state, local and federal taxes and $157 billion in trade surpluses. Despite such robust economic performance, tourism’s contributions to the prosperity of American life have not been fully recognized, understood nor strategically developed by many policymakers for what it is: A powerful driver of jobs, community development, small business growth and export generation. A President's Council on Travel and Tourism -- comprised of Cabinet members, Members of Congress, governors, mayors, and industry leaders -- would be established to advise the President on national tourism policy development, which would assist the Administration in achieving its economic goals. The Council would be created the Executive Order as a federal advisory council under the Federal Advisory Committee Act (FACA).
IMMIGRATION
The difficulty of striking the right balance between national security and economic security is, perhaps, most evident in immigration policy. For the travel and tourism industry, achieving the appropriate balance is critical on both sides of the scale. No industry was harmed more by the terrorist attacks than travel and tourism, and no industry has more to lose should terrorists strike again.
BUSINESS MEAL DEDUCTIBILITY
The reduction of the business meal and entertainment tax deduction from 100 percent to 50 percent negatively affected the travel and tourism industry and its business customers even before September 11, 2001, particularly harming small businesses.
SPOUSAL TRAVEL DEDUCTIONS
The elimination of the spousal travel tax deduction negatively affected the travel and tourism industry and the business customers it serves, even before September 11, 2001. Restoration of this tax deduction would have a tremendous impact on both the industry and the US economy.
TRANSPORTATION REAUTHORIZATIONS
Having a good transportation infrastructure in the United States is critical to ensuring the success of the travel and tourism industry. In the post September 11th climate, this is more true than ever before. With lingering fears of travel and the perceived “hassle factor” associated with air travel, many Americans have resorted changed their travel habits and are now driving to business and vacation destinations.
TRAVEL AND TOURISM SATELLITE ACCOUNTING
Travel and Tourism Satellite Accounts (TTSAs) serve as the primary source of data for tourism policymaking by establishing a consistent, measurable framework for analyzing tourism expenditures and employment in a systematic manner. The sectors measured include purchases of airfares, lodging, meals and beverages, shopping and other travel activities. This research helps the Department of Commerce and in the industry gain a better understanding of traveler preferences and economic trends across the varied sectors that make up the travel and tourism industry.
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Current Federal Issues
