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U.S. National CVB Would Rely On European Visitor Fees
October 09, 2009
By Jay Boehmer
The U.S. Travel Promotion Act of 2009, which would establish for the first time ever a federal convention and visitors bureau to promote the United States as a destination for meetings, tourism, scholarship, and business travel, has passed the U.S. House of Representatives by a vote of 358-66, following the Senate's 79-19 approval in September.
However, the act, which is funded in part by travelers who enter the U.S. from visa-waiver countries, has sparked protest from the European Union, which counts as its members 22 of the 35 countries in the Visa Waiver Program. While placing the onus of funding on non-U.S. travelers has made the Travel Promotion Act politically palatable in Washington, EU representatives point to the possibility of a similar fee on U.S. travelers bound for Europe.
Facing what proponents described as a minor technicality before advancing to President Barack Obama's desk for final passage, the legislation first must undergo an additional Senate vote, "anticipated in the coming weeks," according to the U.S. Travel Association.
"Because the legislation creates 'revenue' for the federal government, the Constitution requires that the bill originate in the House—hence the need for the Senate to pass the House version of the bill," U.S. Travel Association President and CEO Roger Dow said in a dispatch yesterday applauding the bill's passage.
Final passage would create a nonprofit corporation—essentially a national convention and visitors bureau—called the Corporation for Travel Promotion, whose mission is to promote the U.S. to "travelers, travel agents, tour operators, meeting planners, foreign governments, travel media, and other international stakeholders" through advertising, outreach, and education.
Though half of the program's funds would come from private industry donations and partnerships, the Department of Homeland Security (DHS) would fund the other half by assessing $10 for travel authorization for visitors to the U.S. from visa-waiver countries. The bill, however, caps the amount to be funded from foreign travelers at $100 million annually.
The U.S. has a new mechanism that would aid in collecting the $10 from each visa-waiver-country visitor. DHS last August launched the Electronic System for Travel Authorization (ESTA) and in January mandated the system for U.S.-bound travelers from visa-waiver countries to submit biographic data prior to entering the country.
Through ESTA, residents from the 35 Visa Waiver Program countries can submit information online and, once approved, are cleared to enter the country for up to two years or until the applicant's passport expires.
Geoff Freeman, U.S. Travel Association's senior vice president of public affairs, called the $10 fee on travelers once every two years "highly targeted and limited in its execution." However, ambassador John Bruton, head of the European Commission delegation to the U.S., said, "ESTA's function is to vet travelers against watchlists, not to collect revenue for the travel industry."
Bruton last month reiterated European objections to the Travel Promotion Act and claimed it would have the opposite impact of overturning negative perceptions of the U.S. held by overseas travelers. He said the legislation amounts to "a tax on tourists to encourage tourism, which is a questionable—if not paradoxical—concept."
Bruton did not call for a similar fee for U.S. travelers bound for Europe, but he noted that possibility. "We are also concerned that there will be calls for Americans to pay the same fees for travel to Europe, and this could further depress transatlantic travel," he said.
Source: Nielsen Business Media
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